HomeMy WebLinkAbout16413 ORD - 07/22/19814
THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI .
On this the 22nd day of July, 1981, the City Council of
the City of Corpus Christi, Texas convened in Regular Meeting,
with the following members of said Council present, to -wit:
Luther Jones, Mayor,
Betty N. Turner, Mayor Pro -Tem,
Bob Gulley,
Herbert Hawkins, Jr.:
Dr. Charles Kennedy,: Councilmen,
Jack K. Dumphy,
Cliff Zarsky,
R. Marvin Townsend, City Manager,
J. Bruce Aycock, City Attorney,
Harold F. Zick, Director of Finance,
Bill G. Read, City Secretary,
y/V. I urner
constituting a quorum, at which time the following among
other business was transacted:
21.6 y presented for the consideration of the
Council •an ordinance/. The ordinance was read by the City
Secretary. The Mayor presented to the Council a communication
in writing pertaining to said proposed ordinance, as follows:
with the following absent:
"CorRu Christi, Texas
ZL , 1981
"TO THE CITY COUNCIL
Corpus Christi, Texas
Gentlemen:
"The public importance and pressing need for the permanent
improvements to be constructed by use of the proceeds of
bonds contemplated to be issued pursuant to an ordinance
create an emergency and an imperative public necessity
requiring the suspension of rules and Charter provisions
requiring ordinances to be considered and voted upon at
three regular meetings. I, therefore, request that the City
Council pass the proposed ordinance authorizing the issuance
of bonds as an emergency measure. You will please consider
this request in connection with the ordinance which is to be
introduced far passage by the City Council on the subject.
MICROFILMED
►SEP 27 19A
"Yours very truly,
/s/ Luther Jones
Mayor"
15413
Councilman 12)Ltrn- moved that the Charter
provision prohibiting ordinances from being passed finally
on the date introduced be suspended for the reasons stated
in the written request of the Mayor and stated in the emer-
gency clause of the ordinance. The motion was seconded by
Z.Ctr�kr�
Councilman
The motion was carried by an
unanimous vote by the City Council, viz.:
AYES: All present voted Aye.
NAYS: None.
The Mayor requested that the records show that he voted
Aye. This was done.
Councilman 14rv?_?y moved that the ordinance
be passed finally. The motion was seconded by Councilman
1 -GAS ki The motion was carried by the following
•j vote:
AYES: All present voted Aye.
NAYS: None.
The Mayor requested that the records show that he voted
Aye. This was done.
The Mayor announced that the ordinance had been passed.
' The ordinance is as follows:
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ORDINANCE NO. 16113
ORDINANCE AUTHORIZING THE ISSUANCE OF
CITY OF CORPUS CHRISTI, TEXAS
FIRST LIEN WATERWORKS SYSTEM REVENUE BONDS
THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
WHEREAS, the bonds hereinafter authorized are to be
issued and delivered pursuant to Vernon's Ann. Civ. St. of
Texas, Articles lllla, 1112, 1113, 1114 and 1115, and other
applicable laws; and
WHEREAS, this Ordinance is hereby declared to .be an
emergency measure, to be effective immediately, such emer-
gency being that the City of Corpus Christi urgently needs
the proceeds from the issuance and sale of the bonds herein-
, after authorized for the immediate preservation of public
property, health and safety.
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
', CITY OF CORPUS CHRISTI, TEXAS:
Section 1. BONDS AUTHORIZED. That the City's bonds
(the "Bonds") are hereby authorized to be issued in the
principal amount of $25,000,000, FOR THE PURPOSE OF PROVIDING
MONEY FOR IMPROVEMENTS AND EXTENSIONS OF THE WATERWORKS SYS-
TEM OF THE CITY OF CORPUS CHRISTI.
Section 2. BONDS DESIGNATED. That the Bonds shall be
designated as the: CITY OF CORPUS CHRISTI, TEXAS FIRST LIEN
WATERWORKS SYSTEM REVENUE BONDS, SERIES 1981.
Section 3. DATE AND MATURITIES. That the Bonds shall
be dated JULY 10, 1981, ,shall be in the denomination of
$5,000 each, shall be numbered consecutively from one upward,
and shall mature serially on the maturity date, in each of
the years, and in the amounts, respectively, as set forth in
the following schedule:
MATURITY DATE: JULY 10
YEARS AMOUNTS YEARS AMOUNTS
1982 $ 200,000 1992 $1,700,000
1983 225,000 1993 1,800,000
1984 225,000 1994 1,900,000
1985 225,000 1995 2,000,000
1986 225,000 1996 2,000,000
1987 225,000 1997 2,000,000
1988 225,000 1998 2,000,000
1989 225,000 1999 2,000,000
1990 225,000 2000 2,000,000
1991 1,600,000 2001 2,000,000
2002 2,000,000
Section 4. INTEREST. That the Bonds scheduled to
mature during the years, respectively, set forth below shall
bear interest at the following rates per annum:
maturities 1982, /3.0% maturities 1992, 3•.00%
maturities 1983, /3.o% maturities 1993, /2,00%
maturities 1984, J3,0 % maturities 1994, /07S
maturities 1985, /3.0 % maturities 1995, /0.%
maturities 1986, /3.0 % maturities 1996, //,go
maturities 1987, /3.p % maturities 1997, //,Jo
maturities 1988, /3.o % maturities 1998, j/2,,
maturities 1989, /3.o% maturities 1999, //,3o%
maturities 1990, /3.o% maturities 2000, /o.So%
maturities 1991, 15.0% maturities 2001, /n.So%
maturities 2002, /n..o%
Said interest shall be evidenced by interest. coupons which
shall appertain to the Bonds, and which shall be payable in
the manner provided and on the dates stated in the FORM OF
BOND set forth in this Ordinance.
Section 5. GENERAL CHARACTERISTICS. That the Bonds
and interest coupons shall be issued, shall be payable, may
be redeemed prior to their scheduled maturities, shall have
the characteristics, and shall be signed and executed (and
the Bonds shall be sealed), all as provided, and in 4the
manner indicated, in the FORM OF BOND set forth in this
Ordinance.
Section 6. FORMS. That the form of the Bonds, includ-
ing the form of Registration Certificate of the Comptroller
of Public Accounts of the State of Texas to be printed and
endorsed on each of the Bonds, and the form of the aforesaid
interest coupons which shall appertain and be attached
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Cl
initially to each of the Bonds, shall be, respectively, sub-
stantially as follows:
FORM OF BOND:
NO. $5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI, TEXAS
FIRST LIEN WATERWORKS SYSTEM REVENUE BOND
SERIES 1981
'ON JULY 10, , THE CITY OF CORPUS CHRISTI, IN NUECES
COUNTY, TEXAS, hereby promises to pay to bearer hereof the
principal amount of
FIVE THOUSAND DOLLARS
and to pay interest thereon, from date hereof, at the rate
of % per annum, evidenced by interest coupons payable
JANUARY 10, 1982, and semiannually thereafter while this
Bond is outstanding.
THE PRINCIPAL of this Bond and the interest coupons
appertaining hereto shall be payable to bearer, in lawful
money of the United States of America, without exchange or
collection charges to the bearer, upon presentation and sur-
render of this Bond or proper interest coupon, at the follow-
ing, which, collectively, shall constitute and be defined as
the "Paying Agent" for this Series of Bonds:
CORPUS CHRISTI NATIONAL BANK, CORPUS CHRISTI, TEXAS,
OR, AT THE OPTION OF THE BEARER, AT
CHASE MANHATTAN BANK, N.A., NEW YORK, NEW YORK, OR AT
HARRIS TRUST AND SAVINGS BANK, CHICAGO, ILLINOIS.
THIS BOND is one of a Series dated as of JULY 10, 1981,
authorized and issued in the principal amount of $25,000,000,
FOR THE PURPOSE OF PROVIDING MONEY FOR IMPROVEMENT AND EX-
TENSIONS OF THE WATERWORKS SYSTEM OF THE CITY OF CORPUS
CHRISTI.
ON JULY 10, 1991,
or on any interest payment date thereafter, the outstanding
Bonds of this Series may be redeemed prior to their scheduled
maturities, at the option of said City, in whole, or in part
for the principal amount thereof and accrued interest thereon
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to the date fixed for redemption, plus a premium of 2-1/2%,
such premium to be reduced 1/2 of 1% on July 10 of each year
thereafter until par is reached July 10, 1996. At least
thirty days prior to the date fixed for any such redemption
said City shall cause a written notice of such redemption to
be published at least once in a financial publication
published in the City of New York, New York. By the date
Fixed for any such redemption due provision shall be made
with the "Paying Agent" for the payment of the principal
amount of the Bonds which are to be so redeemed and accrued
interest thereon to the date fixed for redemption, and any
premium as required -above. If the written notice of redemp-
tion is published, and if due provision for such payment is
made, all as provided above, the Bonds which are to be so
redeemed thereby automatically shall be redeemed prior to
their scheduled maturities, and they shall not bear interest
after the date fixed for redemption, and they shall not be
regarded as being outstanding except for the right of the
bearer to receive the redemption price from the "Paying
Agent" out of the funds provided for such payment.
IT IS HEREBY certified and covenanted that this Bond
has been duly and validly authorized, issued and delivered;
that all acts, conditions and things required or proper to
be performed, exist and be done precedent to or in the auth-
orization, issuance and delivery of this Bond have been per-
formed, existed and been done in accordance with law; that
this Bond is a special obligation; and that the principal of
and interest on this Bond are payable from, and secured by a
first lien on and pledge of, the Pledged Revenues, as defined
in the Ordinance authorizing this Series of Bonds, and which
include the Net Revenues of said City's Waterworks System.
SAID CITY has reserved the right, subject to the re-
strictions stated, and adopted by reference, in the Ordinance
authorizing this Series of Bonds, to issue additional parity
revenue bonds which also may be made payable from, and se-
cured by a first lien on and pledge of, the aforesaid Pledged
Revenues.
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THE HOLDER HEREOF shall never have the right to demand
payment of this obligation out of any funds raised or to be
raised by taxation, or from any source whatsoever other than
the aforesaid Pledged Revenues.
IN WITNESS WHEREOF, this Bond and the interest coupons
appertaining hereto have been signed with the Facsimile
signature of the Mayor of said City and countersigned with
the facsimile signature of the City Secretary of said City,
and the official seal of said City has been duly impressed,
or placed in facsimile, on this Bond.
xxxxxxxx xxxxxxxx
City Secretary, City of Mayor, City of Corpus
Corpus Christi Christi
FORM OF REGISTRATION CERTIFICATE:
COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO.
I hereby certify that this Bond has been examined,
certified as to validity, and approved by the Attorney
General of the State of Texas, and that this Bond has been
registered by the Comptroller of Public Accounts of the
State of Texas.
Witness my signature and seal this
NO.
xxxxxxxx
Comptroller of Public Accounts
of the State of Texas
FORM OF INTEREST COUPON:
ON 1,
THE CITY OE CORPUS CHRISTI, IN NUECES COUNTY, TEXAS, promises
to pay to bearer the amount shown on this interest coupon,
in lawful money of the United States of America, without
exchange or collection charges to the bearer, unless due
provision has been made for the redemption prior to maturity
of the Bond to which this interest coupon appertains, upon
presentation and surrender of this interest coupon, at the
CORPUS CHRISTI NATIONAL BANK, CORPUS CHRISTI, TEXAS,
OR, AT THE OPTION OF THE BEARER, AT
CHASE MANHATTAN BANK, N.A., NEW YORK, NEW YORK, OR AT
HARRIS TRUST AND SAVINGS BANK, CHICAGO, ILLINOIS,
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said amount being interest due that day on the Bond, bearing
the number hereinafter designated, of that issue of CITY OF
CORPUS CHRISTI, TEXAS FIRST LIEN WATERWORKS SYSTEM REVENUE
BONDS, SERIES 1981, DATED JULY 10, 1981. The holder hereof
shall never have the right to demand payment of this obliga-
tion out of any funds raised or to be raised by taxation, or
from any source whatsoever other than the Pledged Revenues
described in the Bond to which this coupon is attached.
Bond No.
xxxxxxxx xxxxxxxx
City Secretary Mayor
Section 7. DEFINITIONS. That as used in this Ordinance
the following terms shall have the meanings set forth below,
unless the text hereof specifically indicates otherwise:.
(a) The term "City" shall mean the City of Corpus
• Christi, in Nueces County, Texas.
(b) The term "Bonds" shall mean the City of Corpus
Christi, Texas First Lien Waterworks System Revenue Bonds,
Series 1981, authorized by this Ordinance.
(c) The term "Additional Bonds" shall mean the addi-
tional parity revenue bonds which the City reserves the
right to issue in the future, as provided in this Ordinance.
(d) The term "Waterworks System" and "System" shall
mean and include the City's existing waterworks system,
together with all future extensions, improvements, enlarge-
ments, and• additions thereto, and all replacements thereof;
provided that, notwithstanding the foregoing, and to the
extent now or hereafter authorized or permitted by law, the
term System shall not include any waterworks facilities
which are declared not to be a part of the System and whish
are acquired or constructed by the City with the proceeds
from the issuance of "Special Facilities Bonds", which are
hereby defined as being special revenue obligations of the
City which are not secured by or payable from the Pledged
Revenues as defined herein, but which are secured by and
payable solely from special contract revenues or payments
tt
it
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received from any other legal entity in connection with such
facilities; and such revenues,or payments shall not be con-
sidered as or constitute Gross Revenues of the System,
unless and to the extent otherwise provided in the ordinance
or ordinances authorizing the issuance of such "Special
Facilities Bonds".
(e) The term "Gross Revenues of the City's Waterworks
System" and "Gross Revenues" shall mean all revenues, income,
and receipts of every nature derived or received by the City
from the operation and ownership of the System, including
the interest income from the investment or deposit of money
in any Fund created by this Ordinance.
(f) The term "Net Revenues of the City's Waterworks
System", and "Net Revenues" shall mean all Gross Revenues
after deducting and paying the current expenses of operation
and maintenance of the System, as required by Vernon's Ann.
Tex. Civ. St. Article 1113, including all salaries, labor,
materials, repairs, and extensions necessary to render effi-
cient service, provided, however, that only such repairs and
extensions, as in the judgment of the City Council, reason-
ably and fairly exercised by the adoption of the appropriate
resolution, are necessary to keep the System in operation
and render adequate service to said City and the inhabitants
thereof, or such as might be necessary to meet some physical
accident or condition which would otherwise impair the Bonds
or Additional Bonds, shall be deducted in determining "Net
Revenues". Payments made by the City for water supply which
constitute under the law operation and maintenance expense
shall be considered herein as expenses incurred in the
operation and maintenance of the System. Depreciation shall
never be considered as an expense of operation and maintenance.
(g)
The term "Pledged Revenues" shall mean
(1) the Net Revenues, plus
(2) any additional revenues, income, re-
ceipts, or other resources, including, without
limitation, any grants, donations, or income
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received or to be received from the United States
Government, or any other public or private source,
whether pursuant to an agreement or otherwise,
which hereafter may be pledged to the payment of
the Bonds or Additional Bonds.
(h) The term "year" shall mean the regular fiscal year
used by the City in connection with the operation of the
System, which may be any twelve consecutive months period
established by the City.
Section 8. PLEDGE. That the Bonds and any Additional
Bonds, and the interest coupons appertaining thereto, are
and shall be secured by and payable from an irrevocable .
first lien on and pledge of the Pledged Revenues; and the
Pledged Revenues are further pledged irrevocably to the
establishment and maintenance of the Interest and Sinking
Fund and the Reserve Fund as hereinafter provided. The
Bonds and any Additional Bonds are and will be secured by
and payable only from the Pledged Revenues, and are not
' secured by or payable from a mortgage or deed of trust on
any real, personal or mixed properties constituting the
System.
Section 9. REVENUE FUND. That there is hereby created
• and there shall be established and maintained on the books
of the City, and accounted for separate and apart from all
other funds of the City, a special fund to be entitled the
"City of Corpus Christi, Texas First Lien Waterworks System
Revenue Bonds Revenue Fund" (hereinafter called the "Revenue
Fund"). All Gross Revenues shall be credited to the Revenue
Fund immediately upon receipt. All current expenses of
operation and maintenance of the System shall be paid from
such Gross Revenues credited to the Revenue Fund, as a first
charge against same.
Section 10. INTEREST AND SINKING FUND. That for the
sole purpose of paying the principal of and interest on all
Bonds and any Additional Bonds, as the same come due, there
is hereby created and there shall be established and main -
8
I; .
tained at any official depository bank of the City a separate
fund to be entitled the "City,of Corpus Christi, Texas First
Lien Waterworks System Revenue Bonds Interest and Sinking
Fund" (hereinafter called the "Interest and Sinking Fund").
Section 11. RESERVE FUND. That there is hereby created
and there shall be established and maintained initially at
the Corpus Christi National Bank, Corpus Christi, Texas, and
thereafter, at the option of the City, established and
maintained at any official depository bank of the City, a
separate fund to be entitled "City of Corpus Christi, Texas
First Lien Waterworks System Revenue Bonds Reserve Fund"
(hereinafter called the "Reserve Fund"). The Reserve Fund
shall be used solely for the purpose of finally retiring the
last of any Bonds or Additional Bonds, or for paying principal
of and interest on any Bonds or Additional Bonds when and to
the extent the amounts in the Interest.and Sinking Fund are
insufficient for such purpose.
Section 12. DEPOSITS OF PLEDGED REVENUES; INVESTMENTS.
(a) The Pledged Revenues shall be deposited in the Interest
and Sinking Fund and the Reserve Fund when and as required
by this Ordinance.
(b) That money in any Fund established pursuant to
this Ordinance may, at the option of the City, be placed in
time deposits or certificates of deposit secured by obliga-
tions of the type hereinafter described, or be invested in
direct obligations of the United States of America, obliga-
tions guaranteed or insured by the United States of America,
which, in the opinion of the Attorney General of the United
States, are backed by its full faith and credit or represent
its general ob'igations, or invested in direct obligations
of the United States of America, including, but not limited
to, evidences of indebtedness issued, insured or guaranteed
by such governmental agencies .as the. Federal. Land Banks,
Federal Intermediate Credit Banks, Banks for Cooperatives,
Federal Home Loan Banks, Government National Mortgage
Association, United States Postal Service, Farmers Home
9
Administration, Federal Home Loan Mortgage Association,
Small Business Administration, Federal Housing Association,
or Participation Certificates in the Federal Assets Financing
Trust; provided that all such deposits and investments shall
be made in such manner that the money required to be expended
from any Fund will be available at the proper time or times.
Such investments shall be valued by the City in terms of
current market value as of the 20th`day of May of each year.
All interest and income derived from such deposits and in-
vestments immediately shall be credited to, and any losses
debited to, the Fund from which the deposit or investment
was made, and surpluses in any Fund shall or may be disposed
of as hereinafter provided. Such investments shall be sold
promptly when necessary to prevent any default in connection
with the Bonds or Additional Bonds.
Section 13. FUNDS SECURED. That money in all Funds
created by this Ordinance, to the extent not invested, shall
be secured in the manner prescribed by law for securing
funds of the City.
Section 14. DEBT SERVICE REOUIREMENTS. (a) That
promptly after the delivery of the Bonds the City shall
cause to be deposited to the credit of the Interest and
Sinking Fund any accrued interest received from the sale and
delivery of the Bonds, and any such deposit shall be used to
pay part of the interest next coming due on the Bonds.
(b) That the City shall transfer from the Pledged Rev-
enues and deposit to the credit of the Interest and Sinking
Fund the amounts, at the times, as follows:
(1) such amounts, deposited in approximately
equal monthly installments on or before the 25th day of
each month hereafter, commencing with the month during
which the Bonds are delivered, or the month thereafter
if delivery is made after the 25th day thereof, as will
'be sufficient, together with other amounts, if any,
then on hand in the Interest and Sinking Fund and
available for such purpose, to pay the interest sched-
10
uled to accrue and come due on the Bonds and any
Additional Bonds on the next succeeding interest
payment date; and
(2) such amounts, deposited in approximately
equal monthly installments on or before the 25th day of
each month hereafter, commencing with the month during
which the Bonds are delivered, or the month thereafter
if delivery is made after the 25th day thereof, as will
be sufficient, together with other amounts, if any,
then on hand in the Interest and Sinking Fund and
available for such purpose, to pay the principal
scheduled to mature and come due on the Bonds and any
Additional Bonds on the next succeedingprincipal
payment date.
Section 15. RESERVE REQUIREMENTS. That on or before
the 10th day of August, 1981, and on or before the 10th day
of each month thereafter, the City shall cause to be trans-
ferred from Pledged Revenues and deposited to the credit of
the Reserve Fund an amount equal to 1/80 of the average
annual principal and interest requirements of the Bonds,
until the Reserve Fund contains an amount of money and
investments at least equal in market value to the average
annual principal and interest requirements on all then
outstanding Bonds (the "Required Amount"). When and so long
as the money and investments in the Reserve Fund are not
less than the Required Amount, no deposits need be made to
the credit of the Reserve Fund; but when and if the Reserve
Fund at any time contains less than the Required Amount,
then, subject and subordinate to making the required deposits
to the credit of the Interest and Sinking Fund, the City
shall transfer from the Pledged Revenues and deposit to the
credit of the Reserve Fund, on or before the 10th day of
each month, a sum equal to 1/80 of the Required Amount until
the Reserve Fund is restored to the Required Amoiint. The
City may,, at its option, withdraw and use for any lawful
purpose all surplus in the Reserve Fund over the Required
Amount.
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Section 16. DEFICIENCIES; EXCESS PLEDGED REVENUES.
(a) That if on any occasion there shall not be sufficient
Pledged Revenues to make the required deposits into the
Interest and Sinking Fund and the Reserve Fund, then such
deficiency shall be made up as soon as possible from the
next available Pledged Revenues, or from any other sources
available for such purpose.
(b) That, subject to making the required deposits to
the credit of the Interest and Sinking Fund and the Reserve
Fund when and as' required by this Ordinance, or any ordinance
authorizing the issuance of Additional Bonds, the excess
Pledged Revenues may be used by the City for any lawful
purpose.
Section 17. PAYMENT OF BONDS AND ADDITIONAL BONDS. On
or before January 10, 1982, and semiannually on or before
each July 10 and January 10 thereafter while any of the
Bonds or Additional Bonds are outstanding and unpaid, the
City shall make available to the Paying Agent therefor, out
of the Interest and Sinking Fund and the Reserve Fund, if
necessary, money sufficient to pay such interest on and such
principal of the Bonds and Additional Bonds as will accrue
or mature on such dates, respectively. The Paying Agent
shall destroy all paid Bonds and Additional Bonds, and the
coupons appertaining thereto, and furnish the City with an
appropriate certificate of cancellation or destruction.
Section 18. FINAL DEPOSITS; GOVERNMENTAL OBLIGATIONS.
(a) That any Bond or Additional Bond shall be deemed to be
paid, retired and no longer outstanding within the meaning
of this Ordinance when payment of the principal of, redemp-
tion premium, if any, on such Bond or Additional bond, plus
interest thereon to the due date thereof (whether such due
date be by reason of maturity, upon redemption, or otherwise)
either (i) shall have been made or caused to be made in
accordance with the terms thereof (including the giving of
any required notice of redemption), or (ii) shall have been
provided by irrevocably depositing with, or making available
12
to, a paying agent therefor, in trust and irrevocably set
aside exclusively for such payment, (1) money sufficient to
make such payment or (2) Government Obligations, as herein-
after defined in this Section, certified by an independent
public accounting firm of national reputation to mature as
to principal and interest in such amounts and at such times
as will insure the availability, without reinvestment, of
sufficient money to make such payment, and all necessary and
proper fees, compensation, and expenses of such paying agent
pertaining to the Bonds and Additional Bonds with respect to
which such deposit is made shall have been paid or the
payment thereof provided for to the satisfaction of such
paying agent. At such time as a Bond or Additional Bond
shall be deemed to be paid hereunder, as aforesaid, it shall
no longer be secured by or entitled to the benefit of this
Ordinance or a lien on and pledge of the Pledged Revenues,
and shall be entitled to payment solely from such money or
Government Obligations.
(b) That any moneys so deposited with a paying agent.
may at the direction of the City also be invested in Govern-
ment Obligations, maturing in the amounts and times as
hereinbefore set forth, and all income from all Government
Obligations in the hands of the paying agent pursuant to
this Section which is not required for the payment of the
Bonds and Additional Bonds, the redemption premium, if any,
and interest thereon, with respect to which such money has
been so deposited, shall be turned over to the City or
deposited as directed by the City.
(c) That the City covenants that no deposit will be
made or accepted under clause (a)(ii) of this Section and no
use made of any such deposit which would cause the Bonds or
any Additional Bonds to be treated as arbitrage bonds
within the meaning of Section 103(c)(2) of the Internal Rev-
enue Code of 1954, as amended.
(d) That for the purpose of this Section, the term
4 "Government Obligations" shall mean direct obligations of
13
•
the United States of America, including obligations the
principal of and interest on which are unconditionally
guaranteed by the United States of America, which may be
United States Treasury obligations such as its State and
Local Government Series, and which may be in book -entry
form.
(e) That notwithstanding any other provisions of this
Ordinance, all money or Government Obligations set aside and
held in trust pursuant to the provisions of this Section for
the payment of Bonds and Additional Bonds, the redemption
premium, if any, and interest thereon, shall be applied to
and used for the payment of such Bonds and Additional
Bonds, the redemption premium, if any, and interest thereon.
Section 19. ADDITIONAL BONDS. (a) That the City
shall have the right and power at any time and from time to
time, and in one or more Series or issues, to authorize,
issue and deliver additional parity revenue bonds (herein
called "Additional Bonds"), in accordance with law, in any
amounts, for any lawful purpose, including the refunding of
any Bonds or Additional Bonds. Such Additional Bonds, if
and when authorized, issued and delivered in accordance with
this Ordinance, shall be secured by and made payable equally
and ratably on a parity with the Bonds, and all other out-
standing Additional Bonds, from an irrevocable first lien on
and pledge of the Pledged Revenues.
(b) That the Interest and Sinking Fund and the Reserve
Fund established by this Ordinance shall secure and be used
to pay all Additional Bonds as well as the Bonds. However,
each ordinance under which Additional Bonds are issued shall
provide and require that, in addition to the amounts re-
quired by the provisions of this Ordinance and the provi-
sions of any other ordinance or ordinances authorizing
Additional Bonds to be deposited to the credit of the Inter-
est and Sinking Fund, the City shall deposit to the credit
of the Interest and Sinking Fund at least such amounts as
are required for the payment of all principal of and inter -
14
est on said Additional Bonds then being issued, as the same
come due; and that the aggregate amount to be accumulated
and maintained in the Reserve Fund shall be increased (if
and to the extent necessary) to an amount not less than the
average annual principal and interest requirements of all
Bonds and Additional Bonds which will be outstanding after
the issuance and delivery of the then proposed Additional
Bonds; and that the required additional amount shall be so
accumulated by the deposit in the Reserve Fund of all or any
part of said required additional amount in cash immediately
after the delivery of the then proposed Additional Bonds,
or, at the option of the City, by the deposit of said required
additional amount (or any balance of said required additional
amount not deposited in cash as permitted above) in monthly
installments, made on or before the 10th day of each month
following the delivery of the then proposed Additional
Bonds, of not less than 1/80 of said required additional
amount (or 1/80 of the balance of said required additional
amount not deposited in cash as permitted above).
(c) That all calculations of average annual principal
and interest requirements made pursuant to this Section
shall be made as of and from the date of the Additional
Bonds then proposed to be issued.
(d) That the principal of all Additional Bonds must be
scheduled to be paid or mature,on July 10 of the years in
which such principal is scheduled to be paid or mature; and
all interest thereon must be payable on 'July 10 and January
10.
Section 20. FURTHER REQUIREMENTS FOR ADDITIONAL BONDS.
That Additional Bonds shall be issued only in accordance
with this Ordinance, but notwithstanding any provisions of
this Ordinance to the contrary, no installment, Series or
issue of Additional Bonds shall be issued or delivered
unless:
(a) The Mayor and the City Secretary of the City sign
a written certificate to the effect that the City is not in
15
default as to any covenant, condition or obligation in
connection with all outstanding Bonds and Additional Bonds,
and the ordinances authorizing same, and that the interest
and Sinking Fund and the Reserve Fund each contains the
amount then required to be therein.
(b) An independent certified public accountant, or
independent firm of certified public accountants, signs a
written certificate to the effect that, during either the
next preceding completed year, or any twelve consecutive
calendar month period ending not more than ninety days prior
to the passage of the ordinance authorizing the issuance of
the then proposed Additional Bonds, the Pledged Revenues
were, in his or its opinion, at least equal to '1.25 times
the average annual principal and interest requirements of
all Bonds and Additional Bonds to be outstanding after the
issuance of the then proposed. Additional Bonds.
(c) For the purpose of determining the Pledged Rev-
enues, as required in (b) above, the certified public
accountant or accountants may adjust the Pledged Revenues to
include a proper allowance for revenues arising from any
increase in rates which will have become effective at least
sixty (60) days prior to the issuance of the proposed
Additional Parity Bonds (but which during all or any part of
the next preceding completed year, or other twelve (12)
month period used for determining said Pledged Revenues were
not in effect) in an amount by which the billings of the
System to customers for such year or twelve (12) month
period would have been increased if such increase in rates
had been in effect during the whole of such year or twelve
(12) month period. Said adjustment of the certified public
accountant shall be based on a report by a consulting
engineer to be designated by the City.
Section 21. GENERAL COVENANTS. The City further cove-
; nants and agrees that in accordance with and to the extent
required or permitted by law:
16 1
1
(a) PERFORMANCE. It will faithfully perform at all
times any and all covenants, undertakings, stipulations, and
provisions contained in this Ordinance, and each ordinance
authorizing the issuance of Additional Bonds, and in each
and every Bond and Additional Bond; that it will promptly
pay or cause to be paid the principal of and interest on
every Bond and Additional Bond, on the dates and in the
places and manner prescribed in such ordinances and Bonds or
Additional Bonds; and that it will, at the times and in the
manner prescribed, deposit or cause to be deposited the
amounts required to be deposited into the Interest and
Sinking Fund and the Reserve Fund; and any holder of the
Bonds or Additional Bonds may require the City, its officials
and employees to carry out, respect or enforce the covenants
and obligations of this Ordinance, or any ordinance auth-
orizing the issuance of Additional Bonds, by all legal and
equitable means, including specifically, but without limita-
tion, the use and filing of mandamus proceedings, in any
court of competent jurisdiction, against the City, its
officials and employees.
(b) CITY'S LEGAL AUTHORITY. It is a duly created and
existing home rule city of the State of Texas, and is duly
authorized under the laws of the State of Texas to create
and issue the Bonds; that all action on its part for the
creation and issuance of the Bonds has been duly and effec-
tively taken, and that the Bonds in the hands of the holders
and owners thereof are and will be valid and enforceable
special obligations of the City in accordance with their
terms.
(c) TITLE. It has or will obtain lawful title to the
lands, buildings, structures and facilities constituting the
System, that it warrants that it will defend the title to
all the aforesaid lands, buildings, structures and facili-
ties, and every part thereof, for the benefit of the holders
and owners of the Bonds and Additional Bonds, against the
claims and demands of all persons whomsoever, that it is
17
lawfully qualified to pledge the Pledged Revenues to the'k•
payment of the Bonds and Additional Bonds in the manner pre-
scribed herein, and has lawfully exercised such rights.
(d) LIENS. It will from time to time and before the
same become delinquent pay and discharge all taxes, assess-
ments and governmental charges, if any, which shall be
lawfully imposed upon it, or the System, that it will pay
all lawful claims for rents, royalties, labor, materials and
supplies which if unpaid might by law become a lien or
charge thereon, the lien of which would be prior to or
interfere with the liens hereof, so that the priority of the
liens granted hereunder shall be fully preserved in the
manner provided herein, and that it will not Create or
suffer to be created any mechanic's, laborer's, materialman's
or other lien or charge which might or could be prior to the
liens hereof, or do or suffer any matter or thing whereby
the liens hereof might or could be impaired; provided,
however, that no such tax, assessment or charge, and that no
such claims which might be used as the basis of a mechanic's,
laborer's, materialman's or other lien or charge, shall be
required to be paid so long as the validity of the same
shall be contested in good faith by the City.
(e) OPERATION OF SYSTEM; NO FREE SERVICE. While the
Bonds or any Additional Bonds are outstanding and unpaid,
the City shall continuously and efficiently operate the
System, and shall maintain the System in good condition,
repair and working order, all at reasonable cost. No free
service of the System shall be -allowed, and should the City
or any of its agencies or instrumentalities make use of the
services and facilities of the System, payment of the.
reasonable value shall be made by the City out of funds from
sources other than the revenues of the System, unless made
from surplus or excess Pledged Revenues as permitted in
Section 18 (b) hereof.
(f) FURTHER ENCUMBRANCE. While the Bonds or any Addi-
tional Bonds are outstanding and unpaid, the City shall not
18
additionally encumber the Pledged Revenues in any manner,
except as permitted in this Ordinance in connection with
Additional Bonds, unless said encumbrance is made junior and
subordinate in all respects to the liens, pledges, covenants
and agreements of this Ordinance; but the right of the City
to issue revenue bonds payable from a subordinate lien on
the Pledged Revenues is specifically recognized and retained.
(g) SALE OR DISPOSAL OF PROPERTY. While the Bonds or
any Additional Bonds are outstanding and unpaid, the City
shall not sell, convey, mortgage, encumber, lease or in any
manner transfer title to, or otherwise dispose of the System,
or any significant or substantial part thereof; provided
that whenever the City deems it necessary to dispose .of any
property, machinery, fixtures or equipment, it may sell or
otherwise dispose of such property, machinery, fixtures or
equipment when it has made arrangements to replace the same
or provide substitutes therefor, unless it is determined by
resolution of the City Council that no such replacement or
substitute is necessary.
(h) INSURANCE. (1) The City shall cause to be in-
sured such parts of the System as would usually be insured
by corporations operating like properties, with a respon-
sible insurance company or companies, against risks, acci-
dents or casualties against which and to the extent insurance
is usually carried by corporations operating like properties,
including, to the extent reasonably obtainable, fire and
extended coverage insurance, insurance against damage by
floods, and use and occupancy insurance. Public liability
and property damage insurance shall also be carried unless
the City Attorney of the City gives a written opinion to the
effect that the City is not liable for claims which would be
protected by such insurance. At any time while any contractor
engaged in construction work •shall be fully responsible
therefor, the City shall not be required to carry insurance
on the work being constructed if the contractor is required
to carry appropriate insurance. All such policies shall be
19
•n
open to the inspection of the Bondholders and their representa-
tives at all reasonable times. Upon the happening of any
loss or damage covered by insurance from one or more of said
causes, the City shall make due proof of loss and shall do
all things necessary or desirable to cause the insuring
companies to make payment in full directly to the City. The
proceeds of insurance covering such property, together with
any other funds necessary and available for such purpose,
shall be used forthwith by the City for repairing the property
damaged or replacing the property destroyed; provided„
however, that if said insurance proceeds and other funds are
insufficient for such purpose, then said insurance proceeds
pertaining to the System shall be used promptly as follows:
(i) for the redemption prior to maturity of the
Bonds and Additional Bonds, ratably in the proportion
that the outstanding principal of each Series or issue
of Bonds or Additional Bonds bears to the total out-
standing principal of all Bonds and Additional Bonds,
provided that if on any such occasion the principal of
any such Series or issue is not subject to redemption,
it shall not be regarded as outstanding in making the
foregoing computation; or
(ii) if none of the outstanding Bonds or Additional
Bonds is subject to redemption, then for the purchase
on the open market and retirement of said Bonds and
Additional Bonds in the same proportion as prescribed
in the foregoing clause (i), to the extent practicable;
provided that the purchase price for any Bvnd or Addition-
al Bond shall not exceed the redemption price of such
Bond or Additional Bond on the fist date upon which it
becomes subject to redemption; or
(iii) to the extent that the foregoing clauses
(i) and (ii) cannot be complied with at the time, the
insurance proceeds, or the remainder thereof, shall be
deposited in a special and separate trust fund, at an
official depository of the City, to be designated the
20
Insurance Account. The Insurance Account shall be held
until such time as the -foregoing clauses (i) and/or
(ii) can be complied with, or until other funds become
available which, together with the Insurance Account,
will be sufficient to make the repairs or replacements
originally required, whichever of said events occurs
first.
(2) The foregoing provisions of (1) above notwithstand-
ing, the City shall have authority to enter into co-
insurance or similar plans where risk of loss is shared in
' whole or in part by the City.
(3) The annual audit hereinafter required shall contain
a section commenting on whether or not the City has complied
with the requirements of this Section with respect to the
maintenance of insurance, and listing all policies carried,
and whether or not all insurance premiums upon the insurance
policies to which reference is hereinbefore made have been
paid.
(i) RATE COVENANT. The City Council of the City will
fix, establish, maintain and collect such rates, charges and
fees for the use and availability of the System at all times
as are necessary to produce Gross Revenues sufficient, to-
' gether with any other Pledged Revenues, (1) to pay all
current operation and maintenance expenses of the System,
and (2) to produce Pledged Revenues for each year at least
equal to 1.25 times the average annual principal and inter-
est requirements of all then outstanding Bonds and Addi-
tional Bonds.
(j) RECORDS. It will keep proper books of record and
account in which full, true and correct entries will be made
of all dealings, activities and transactions relating to the
System, the Pledged Revenues and the Funds created pursuant
to this Ordinance, and all books, documents and vouchers
relating thereto shall at all reasonable times be made
available for inspection upon request of any Bondholder.
i;
21
I;
(k) AUDITS. After the close of each year while any of
the Bonds or any Additional Bonds are outstanding, an audit
will be made of the books and accounts relating to the
System and the Pledged Revenues by an independent certified
public accountant or an independent firm of certified public
accountants. As soon as practicable after the close of each
such year, and when said audit has been completed and made
available to the City, a copy of such audit for the preceding
year shall be mailed to the Municipal Advisory Council of
Texas, M. E. Allison & Co., Inc., San Antonio, Texas, and to
any holder of 5% or more in aggregate principal amount of
then outstanding Bonds and Additional Bonds who shall so
request in writing. Such annual audit reports shall be open
to the inspection of the bondholders and their agents•and
representatives at all reasonable times.
(1) GOVERNMENTAL AGENCIES. It will comply with all of
i the terms and conditions of any and all franchises, permits
and authorizations applicable to or necessary with respect
to the System, and which have been obtained from any govern-
mental agency; and the City has or will obtain and keep in
full force and effect all franchises, permits, authorization
and other requirements applicable to or necessary with
respect to the acquisition, construction, equipment, operation
and maintenance of the System.
(m) NO COMPETITION. It will not grant any franchise
or permit for the acquisition, construction or operation of
any competing facilities which might be used as a substitute
for the System's facilities, and, to the extent that it
legally may, the City will prohibit any such competing
facilities.
(n) NO ARBITRAGE. That the City covenants to and with
the purchasers of the Bonds that it will make no use of the
proceeds of the Bonds at any time throughout the term of
this issue of Bonds which, if such use had been reasonably
expected on the date of delivery of the Bonds to and payment
for the Bonds by the purchasers, would have caused the Bonds
22
to be arbitrage bonds within the meaning of Section 103(c)
of the Internal Revenue Code -of 1954, as amended, or any
regulations or rulings pertaining thereto; and by this cove-
nant the City is obligated to comply with the requirements
of the aforesaid Section 103(c) and all applicable and
pertinent Department of the Treasury regulations relating to
arbitrage bonds. The City further covenants that the pro-
ceeds of the Bonds will not otherwise be used directly or
indirectly so as to cause all or any part of the Bonds to be
or become arbitrage bonds within the meaning of the afore-
said Section 103(c), or any regulations pertaining thereto.
Section 22. AMENDMENT OF ORDINANCE. (a) The holders
of Bonds and Additional Bonds aggregating in principal
amount 51% of the aggregate principal amount of then out-
standing Bonds and Additional Bonds shall have the right
from time to time to approve any amendment to this Ordinance
which may be deemed necessary or desirable by the City,
'provided, however, that without the consent of the holders
of all of the Bonds and Additional Bonds at the time out-
standing, nothing herein contained shall permit or be
construed to permit the amendment of the terms and conditions
in this Ordinance or in the Bonds or Additional Bonds so as
to:
(1) Make any change in the maturity of the outstand-
ing Bonds or Additional Bonds;
(2) Reduce the rate of interest borne by any of the
outstanding Bonds or Additional Bonds;
(3) Reduce the amount of the principal payable on
the outstanding Bonds or Additional Bonds;
(4) Modify the terms of payment of principal of or
interest on the outstanding Bonds or Additional
Bonds, or impose any conditions with respect to
such payment;
Affect the rights of the holders of less than
all of the Bonds and Additional Bonds then
(5)
23
outstanding;
(6) Change the minimum percentage of the prin
cipal amount of Bonds and Additional Bonds
necessary for consent to such amendment.
(b) If at any time the City shall desire to amend the
Ordinance under this Section, the City shall cause notice of
the proposed amendment to be published in a financial news-
paper or journal published in the City of New York, New
York, once during each calendar week for at least two suc-
cesive calendar weeks. Such Notice shall briefly set forth
the nature of the proposed amendment and shall state that a
copy thereof is on file at the principal office of the
Paying Agent for inspection by all holders of Bonds and
Additional Bonds. Such publication is not required, however,
if notice in writing is given to each holder of Bonds and
Additional Bonds.
(c) Whenever at any time not less than thirty days,
and within one year, from the date of the first publication
of said notice or other service of written notice the City
shall receive an instrument or instruments executed by the
holders of at least 51% in aggregate principal amount of all
Bonds and Additional Bonds then outstanding, which instru-
ment or instruments shall refer to the proposed amendment
described in said notice and which specifically consent to
and approve such amendment in substantially the form of the
copy thereof on file with the Paying Agent, the City Council
may pass the amendatory ordinance in substantially the same
form.
(d) Upon the passage of any amendatory ordnance pur-
suant to the provisions of this Section, this Oriinance
shall be deemed to be amended in accordance with such amend-
atory ordinance, and the respective rights, duties and
obligations under this Ordinance of the City and all the
holders of then outstanding Bonds and Additional Bonds and
all future Bonds and Additional Bonds shall thereafter be •
determined, exercised and enforced hereunder, subject in all
respects to such amendments.
24
(e) Any consent given by the holder of a Bond or Addi-
tional Bond pursuant to the provisions of this Section shall
be irrevocable for a period of six months from the date of
the first publication of the notice provided for in this
Section, and shall be conclusive and binding upon all future
holders of the same Bond or Additional Bond during such
period. Such consent may be revoked at any time after six
months from the date of the first publication of such notice
by the holder• who gave such consent, or by a successor in
title, by filing notice thereof with the Paying Agent and
the City, but such revocation shall not be effective if the
holders of 51% in aggregate principal amount of the then
outstanding Bonds and Additional Bonds as in this Section
defined have, prior to the attempted revocation, consented
to and approved the amendment.
(f) For the purpose of this Section, the fact of the
holding of Bonds or Additional Bonds by any bondholder and
the amount and numbers of such Bonds or Additional Bonds and
the date of their holding same, may be proved by the affidavit
of the person claiming to be such holder, or by a certificate
executed by any trust company, bank, banker or any other
depository wherever situated showing that at the date therein
mentioned such person had on deposit with such trust company,
bank, banker or other depository, the Bonds and Additional
Bonds described in such certificate. The City may conclusive-
ly assume that such ownership continues until written notice
to the contrary is served upon the City.
Section 23•. APPROVAL AND REGISTRATION OE BONDS. That
the Mayor of the City is hereby authorized to have control
of the Bonds and 311 necessary records and proceedings per-
taining to the Bonds pending their delivery and their inves-
tigation, examination and approval by the Attorney General
of the State of Texas, and their registration by the Comptrol-
ler of Public Accounts of the State of Texas. Upon registra-
tion of the Bonds, said Comptroller of Public Accounts (or a
deputy designated in writing to act for said Comptroller)
25
shall manually sign the Comptroller's Registration Certificate
printed and endorsed on the Bonds, and the seal of said
Comptroller shall be impressed, or placed in facsimile, on
each of the Bonds.
Section 24. SALE OF BONDS. That said Bonds are hereby
sold and shall be delivered to 'The ,".sf �ps7�on
CJ( ral-ion for cash for the par
value thereof and accrued interest thereon to date of de-
livery, plus a premium of $ It is hereby offi-
cially found, determined and declared that said Bonds have
been sold at public sale to the bidder offering the lowest
interest cost, after receiving sealed bids pursuant to an
Official Notice of Sale and Official Statement dated
1-7-e 1) /9 8 (, prepared and distributed in connection
with the sale of said Bonds. Said Official Notice of Sale
and Official Statement have been and are hereby approved by
the City Council. It is further officially found, determined
and declared that the statements and representations contained
in said Official Notice of Sale and Official Statement are
true and correct in all material respects, to the best
knowledge and belief of the City Council.
Section 25. EMERGENCY. The public importance and pressing need for
r
jthe permanent improvements to be, constructed by use of the proceeds of bonds
i contemplated to be issued create an emergency and an imperative public
l'necessity requiring the suspension of the Charter Rule providing that no
.t ordinance or resolution shall be passed finally on the date it is introduced
Wand that such ordinance or resolution shall be read at three several meetings
i of the City Council and the Mayor having declared that such public emergency
i and imperative necessity exist, and having requested that said Charter Rule
!:be suspended and that this ordinance take effect and be in full force and
jeffect from and after its passage, it is accordingly so ordained.
26
ADOPTED AND APPROVED this the 22nd day of July, 1981.
MayorQ.ty ofLrpus Christi
The foregoing resolution was approved prior to adoption
day, of July, 1981.
as to form and correctness this th
. City ttorney, City of Corpus
Chri ti
Corpus Christi, Te
22- day of i
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing ordinance, a
public emergency and imperative necessity exist for the suspension of the Charter
rule or requirement that no ordinance or resolution shall be passed finally on
the date it is introduced, but that such ordinance or resolution shall be read
at three meetings of the City Council; I/we, therefore, request that you suspend
said Charter rule or requirement and pass this ordinance finally on the date
it is introduced, or at the present meeting of the City Council.
, 19P
Respectfully, Respectfully,
Council Members
MAYOR
The ity of Corpus Christi, Texas
The Charter rule was suspended by the following vote:
Luther Jones
Betty N. Turner
Jack K. Dumphy
Bob Gulley
Herbert L. Hawkins, Jr.
Dr. Charles W. Kennedy
Cliff Zarsky
The above ordinance was passed
Luther Jones
Betty N. Turner
Jack K. Dumphy
Bob Gulley
Herbert L. Hawkins, Jr.
Dr. Charles W. Kennedy
Cliff Zarsky
16413
' CITY OF CORPUS CHRISTI, TEXAS
$25,000,000 FIRST LIEN WATERWORKS REVENUE BONDS, SERIES 1981
BIDS OPENED: 11:00 A.M., JULY 22, 1981
Effective Total Less Net
Interest Interest Cash Interest
BIDDER Rate Cost Premium Cost
The First Boston Corporation 11.1697 $41,451,250.00 $ 196.75 $41,451,053.25
Drexel Burnham Lambert Inc. 11.204204 $41,578,800.00 $ $41,578,800.00
John Nuveen & Co. Inc. 11.3658 $42,197,350.00 $18,847.75 $42,178,502.25
Rowles, Winston (Div. Cowen & Co.)
Weeden Municipal Securities
Clayton Brown & Associates, Inc.
Interstate Securities Corp.
Matthews & Wright, Inc.
Thomson McKinnon Securities, Inc.
Hutchinson, Schockey, Erley & Co.
Kirchner, Moore & Co.
Prescott, Ball & Turben
Robinson -Humphrey Co., Inc.
Columbian Securities Corp.
First Southwest Co.
Underwood, Neuhaus & Co., Inc.
Alex Brown & Sons
Smith Barney, Harris Upham & Co., Inc.
Boettcher & Co.
Schneider, Bernet & Hickman, Inc.
Greer Moreland Fosdick Shepherd, Inc.
The Westcap Corp.
The Chicago Corp.
-
Dain Bosworth Inc.
A. G. Edwards & Sons, Inc.
Foster & Marshall, Inc.
Howard, Weil, Labouisse, Friedrichs, Inc.
Juran & Moody, Inc.
Oppenheimer & Co., Inc.
Arch W. Roberts & Co.
Stern Brothers & Co.
Woolsey & Co.
E. F. Hutton & Co., Inc.
Goldman, Sachs, & Co.
Bear, Sterns & Co.
A. G. Becker Inc.
Salomon Brothers & Associates
11.3742 $42,210,300.00 $ 613.75 $42,209,686.25
11.4079 $42,335,100.00 $ 204.00 $42,334,896.00
PROPOSAL FOR
$25,000,000
CITY OF CORPUS CHRISTI, TEXAS
FIRST LIEN WATERWORKS SYSTEM REVENUE BONDS
SERIES 1981
The City of Corpus Christi July 22, 1981
Corpus Christi, Texas
Gentlemen:
Subject to the terms of your Official Notice of Sale and Official Statement, dated June 1, 1981, which
are made a part of this proposal by references, we hereby submit the following bid for $25,000,000 City of
Corpus Christi, Texas First Lien Waterworks System Revenue Bonds, Series 1981, dated July 10, 1981.
For your legally issued Bonds, as described in said Official Statement, we will pay you par
interest from date of the Bonds to date of delivery to us, plus a cash premium of $ 196.9.5'
maturing and bearing interest as follows:
July 10. 1982 /, CO % July 10, 1998 /a er %
July 10, 1983 15,0c/ % July 10, 1994 ',75' %
July 10, 1984 /3.00 % July 10. 1995 /0,90 %
July 10, 1985 /3.oa % July 10, 1996 //.00
July 10, 1986 / 3.m % July 10, 1997 //io %
July 10. 1987 /3.cd % July 10, 1998 /Ago
July 10, 1988 /5 % July 10, 1999 /1.30 %
July 10, 1989 /3.00 % July 10, 2000 /0.3'0
July 10, 1990 /3.p0 % July 10, 2001 /o..
July 10, 1991 /37x7 % July 10, 2002 /o, S'0
July 10, 1992 /3,00 %
Interest cost in accordance with the above bid is: j U
Gross Interest Cost $ 4'' 715'/, as'D, 4'' !�'
Less: Premium $ /96.7..
Net Interest Cost $ /1147 OS'3, 2S'
Effective Interest Rate • /1. /b47 %
and accrued
for Bonds
42!178?
Cashier's Check of the Corpus Christi Nationa$ank• Corpus Christi TPxaa
in the amount of $500,000 which represents our Good Faith Deposit (is attached hereto) or (IliaMODED15e
and is submitted in accordance with the terms as set forth in
the "Official Notice of Sale". Upon delivery of the Bonds, said check shall be applied on the purchase price.
We agree to accept delivery of and make payment for the Bonds at
Bank, Austin, Texas, or at the when tendered for delivery,
puisuant to the terms set forth in the "Official Notice of Sale".
Respectively submitted,
The First Boston Corporation
ACCEPTED by the City Council on this _
ATTEST:
City Secretary
By
ff7lYl.h (7a.V�Lt.'(.Pl
John Baldw'. Vice President
1981.
/
ayor, ;Q7f Conus Chnsti, Texas
Receipt is acknowledged on behalf of bidder of above described Good Faith Check this day
of 1981.
By
\_r
PROPOSAL FOR
$25,000,000
CITY OF CORPUS CHRISTI, TEXAS
FIRST LIEN WATERWORKS SYSTEM REVENUE BONDS
SERIES 1981
The City of Corpus Christi July 22, 1981
Corpus Christi, Texas
1
Gentlemen:
Subject to the terms of your Official Notice of Sale and Official Statement, dated June 1, 1981, which
are made a part of this proposal by references, we hereby submit the following bid for $25,000,000 City of
Corpus Christi, Texas First Lien Waterworks System Revenue Bonds, Series 1981, dated July 10, 1981.
For your legally issued Bonds, as described in said Official Statement, we will pay you par and accrued
interest from date of the Bonds to date of delivery to us, plus a cash premium of $ —0— for Bonds
maturing and bearing interest as follows: 10.70
July 10, 1982 13 %.00 % July 10, 1993 %
July 10, 1988 11 00 % July 10, 1994 10.80 %
±July 10, 1984 1 3 nn % July 10, 1995 11 nn %
July 10, 1985 11 on % July 10, 1996 1 1 00 %
July 10. 1986 1'1 n0 % July 10, 1997 11 10 %
July 10, 1987 13 00— , % July 10, 1998 11 70 %
July 10, 1988 13 nn % July 10, 1999 11 30 %
July 10, 1989 13 00 % July 10, 2000 11 40 %
July 10, 1990 13 00 % July 10, 2001 11 50 %
July 10, 1991 13 00 % July 10, 2002 10 50 %
July 10, 1992 11.00 %
Interest cost in accordance with the above bid is:
Gross Interest Cost $ 41,578,800.00
Less: Premium $ —0—
Net Interest Cost $ 41,578,800.00
Effective Interest Rate 11.204204 %
Cashier's Check of the Corpus Christi National Bank; Corpus Christi. Texas
in the amount of $500,000 which represents our Good Faith Deposit (is attached hereto) or (li9srRODOM&
aNXIDWOOMEIDORDOODIADODIMIKKral), and is submitted in accordance with the terms as set forth in
the "Official Notice of Sale". Upon delivery of the Bonds, said check shall be applied on the purchase price.
We agree to accept delivery of and make payment for the Bonds at
Bank, Austin, Texas, or at the when tendered for delivery,
pursuant to the terms set forth in the "Official Notice of Sale".
Respectively submitted,
Drexel Burnham Lambert Incorporated
60 Broad Street, N.Y., N.Y. 10004
By C—ll� C .O-I/�'�T-- .
dwinn Kantor, Senior Executive Vice President
ACCEPTED by the City Council on this day of 1981.
Mayor, Cay of Corus Christi, Texas
ATTEST:
Receipt is acknowledged on behalf of bidder of above described Good F Check this
of 1981.
By
day
1.
PROPOSAL FOR
$25,000,000
CITY OF CORPUS CHRISTI, TEXAS
FIRST LIEN WATERWORKS SYSTEM REVENUE BONDS
SERIES 1981
The City of Corpus Christi July 22. 1981
Corpus Christi, Texas
Gentlemen:
Subject to the terms of your Official Notice.of Sale and Official Statement, dated June 1, 1981, which
are made a part of this proposal by references, we hereby submit the following bid for $25,000,000 City of
Corpus Christi, Texas First Lien Waterworks System Revenue Bonds, Series 1981, dated July 10, 1981.
For your legally issued Bonds, as described in said Official Statement, we will pay you par and accrued
interest from date of the Bonds to date of delivery to us, plus a cash premium of $ 1 R 647 75 for Bonds
maturing and bearing interest as follows:
July 10, 1982 ' 12.00 % July 10, 1993 10.84
July 10, 1983 12.00 % July 10, 1994 11 .011_ %
July 10. 1984 12.00 % July 10, 1995 11 .00 %
July 10, 1985 12.00 % July 10, 1996 11 1 S %
July 10, 1986 12.00 % July 10, 1997 11 95 %
July 10, 1987 12.00 % July 10, 1998 11 .40 %
July 10, 1988 12.00 % July 10, 1999 11 50 %
July 10, 1989 12.00 % July 10. 2000 11 60 %
July 10, 1990 ' 12.00 % July 10. 2001 11 70 %
July 10, 1991 11.75 % July 10, 200211 75 %
July 10, 1992 /0. (..5' %
Interest cost in accordance with the above bid is:
Gross Interest Cost $ 42,197,350.00
Less: Premium $ 18,847.75
Net Interest Cost $ 42,178,502.25
Effective Interest Rate 11.3658 %
Cashier's Check of the Corpus Christi National Bank. Corpus Christi, Texas
in the amount of $500,000 which represents our Good Faith Deposit (is attached hereto) or (}fie
and is submitted in accordance with the terms as set forth in
the "Official Notice of Sale". Upon delivery of the Bonds, said check shall' be applied on the purchase price.
We agree to accept delivery of and make payment for the Bonds at
Bank, Austin, Texas, or at the when tendered for delivery,
pursuant to the terms set forth in the "Official Notice of Sale".
Respectively submitted,
JOHN NUVEEN & CO. INCORPORAJ.tl)
By iii -�,
Thomas T. Sad er, Vice • esi.
ACCEPTED by the City Council on this day of
ATTEST:
c„y smm,,.y
•
en
1981.
Mayor, City of Corus Christi, Texas
Receipt is acknowledged on behalf of bidder of above described Good ith Check this”
of 1981.
By
day
John Nuveen & Co., Incorporated ) Joint Manager
Rowles, Winston (Div -Cowen & Co.)
Weeden Municipal Securities
Clayton Brown & Associates, Inc.
Interstate Securities Corporation
Matthews & Wright, Incorporated
Thomson McKinnon Securities, Inc.
Hutchinson, Shockey, Erley & Co.
Kirchner, Moore & Company
Prescott, Ball & Turben
Robinson -Humphrey Company, Inc.
Columbian Securities Corporation
First Southwest Company
In Association With:
Underwood, Neuhaus & Co., Inc. Manager
Alex Brown & Sons
Smith Barney, Harris Upham & Co., Inc.
Boettcher & Company
Schneider, Bernet & Hickman, Inc.
Greer Moreland Fosdick Shepherd, Inc.
The Westcap Corporation
The Chicago Corporation
Dain Bosworth Incorporated
A. G. Edwards & Sons, Inc.
Foster & Marshall, Inc.
Howard, Weil, Labouisse, Friedrichs, Inc .
Juran & Moody, Incorporated
Oppenheimer & Company, Inc.
Arch W. Roberts & Company
Stern Brothers & Company,
Woolsey & Company
PROPOSAL FOR
$25,000,000
• CITY OF CORPUS CHRISTI, TEXAS
FIRST LIEN WATERWORKS SYSTEM REVENUE BONDS
SERIES 1981
The City of Corpus Christi July 22, 1981
Corpus Christi, Texas
Gentlemen:
Subject to the terms of your Official Notice of Sale and Official Statement, dated June 1, 1981. which
are made a part of this proposal by references, we hereby submit the following bid for $25,000,000 City of
Corpus Christi, Texas First Lien Waterworks System Revenue Bonds, Series 1981, dated July 10, 1981.
For your legally issued Bonds, as described in said Official Statement, we will pay you par and accrued
interest from date of the Bonds to date of delivery to us, plus a cash premium of $ b I £ 75--- for Bonds
maturing and bearing interest as follows:
July 10, 1982 / 9'71"t:' % July 10, 1993 /p 517 %
July 10, 1983 / ,t'D % July 10, 1994 //. fJ D %
July 10, 1984 f 4. Dr, % July 10, 1995 /1. /17 %
July 10, 1985 ) .On % July 10, 1996 /1• ZO %
July 10, 1986 i3 -BO % July 10, 1997 /1. 37 %
July 10, 1987 i R. --sc % July 10, 1998 I! . • .1 %
July 10, 1988 ?./Sz % July 10, 1999 /I • So %
July 10, 1989 / 3. Or, % July 10, 2000 II. b. %
July 10, 1990 /3 - 64-7 %July 10, 2001 /(• `�
July 10, 1991 /3, O D %July 10, 2002 /a.5 %
July 10, 1992 / 1 . )li
Interest cost in accordance with the above bid is:
Gross Interest Cost $ ° s. %.LD (D D . S b
Less: Premium $
Net Interest Cost $ 4a, 3a4 L t L IA—
Effective Interest Rate /f • .42y2— %
Cashier's Check of the Arrterit'an National Bank- Austin, Texas
in the amount of $500,000 which represents our Good. Faith Deposit (is-attached-herrm) or (has been made
available to you prior to the opening of this bid), and is submitted in accordance with the terms as set forth in
the "Official Notice of Sale". Upon delivery of the Bonds, said check shall be applied on the purchase price.
We agree to accept delivery of and make payment for the Bonds at American National
Bank, Austin, Texas, or at the when tendered for delivery,
pursuant to the terms set forth in the "Official Notice of Sale".
Respectively submitted, E. F. Hutton & Co. Inc.
Goldman, Sachs, & Co.
ACCEPTED by the City Council on this
ATTEST:
Bear, Sterns, & Co.
A. G. LTr` er
By
e„y 5mOfly
day of
1981.
Mayor, Cay of Co us Christi, Texas
Receipt is acknowledged on behalf of bidder of above described Good Faith Check this day
of 1981.
By
5.
PROPOSAL FOR
$25,000,000
CITY OF CORPUS CHRISTI, TEXAS
FIRST LIEN WATERWORKS SYSTEM REVENUE BONDS
SERIES 1981
The City of Corpus Christi July 22, 1981
Corpus Christi, Texas
Gentlemen:
Subject to the terms of your Official Notice of Sale and Official Statement, dated June 1, 1981, which
are made a part of this proposal by references, we hereby submit the following bid for $25,000,000 City of
Corpus Christi, Texas First Lien Waterworks System Revenue Bonds, Series 1981, dated July 10, 1981.
For your legally issued Bonds, as described in said Official Statement, we will pay you par and accrued
interest from date of the Bonds to date of delivery to us, plus a cash premium of $ 7 0 y for Bonds
maturing and bearing interest as follows: G
July 10. 1982 /3.'�/i % July 10, 1995 /01 %
July 10, 1988 % July 10, 1994 If 4' %
July 10, 1984 % July 10, 1995 t/.1O
411
July 10, 1985 % July 10, 1996 II .20 %
July 10, 1986 % July 10, 1997 if 10 %
July 10, 1987 % July 10, 1998 it. VO %
July 10, 1988 % July 10, 1999 fr. tD %
July 10, 1989 % July 10, 2000 (!_GO %
July 10, 1990 8' % July 10, 2001 / (•e %
July 10, 1991 I' % July 10, 2002 II On %
July 10. 1992 /9•e%!) %
Interest cost in accordance with the above bid is:
Gross Interest Cost $ -V-2,-..?-341-a)'O
Less: Premium $ Z01%•°°
Net Interest Cost $ 10 33i e96,00
Effective Interest Rate ii. von %
Cashier's Check of the AMERICAN NATIONAL Bank• AUSTIN, TEXAS
in the amount of $500,000 which represents our Good Faith Deposit (is attached hereto) or (has been made
available to you prior to the opening of this bid), and is submitted in accordance with the terms as set forth in
the "Official Notice of Sale". Upon delivery of the Bonds, said check shall be applied on the purchase price.
We agree to accept delivery of and make payment for the Bonds at
Bank, Austin, Texas, or at the when tendered for delivery,
pursuant to the terms set forth in the "Official Notice of Sale".
Respectively submitted,
SALOMON BROTHERS & ASSOCIATES
BY: SALOMON BROTHERS
BST>�a (L /C
Thomas M. Mead, Jr , Vice resident, Municipa
ACCEPTED by the City Council on this day of 1981. Bond Departmer
ATTEST:
Mayor, City of Cams Christi, Texas
Crty secretary
Receipt is acknowledged on behalf of bidder of above described Good Faith Check this day
of 1981.
By
SIGNATURE IDENTIFICATION AND
NO -LITIGATION CERTIFICATE
THE STATE OF TEXAS
COUNTY OF NUECES
We, the undersigned, hereby certify as follows:
(a) That this certificate is executed and delivered
with reference to that issue of City of Corpus Christi,
Texas First Lien Waterworks System Revenue Bonds, Series
1981, dated July 10, 1981, in the aggregate principal amount
of $25,000,000.
(b) That we officially executed and signed said Bonds
and the interest coupons attached thereto by causing
facsimiles of our manual signatures to be imprinted or
lithographed on each of said Bonds and interest coupons, and
we hereby adopt said facsimile signatures as our own, re-
spectively, and declare that said facsimile signatures
constitute our signatures the same as if we had manually
signed each of said Bonds and interest coupons.
(c) That said Bonds and interest coupons are substan-
tially in the form, and have been duly executed and signed
in the manner, prescribed in the order, resolution or ordinance
authorizing the issuance of said Bonds and interest coupons.
(d) That at the time we so executed and signed said
Bonds and interest coupons we were, and at the time of
executing this certificate we are, the duly chosen, qualified
and acting officers indicated therein, and authorized to
execute the same.
(e) That no litigation of any nature has been filed or
is now pending to restrain or enjoin the issuance or delivery
of said Bonds or interest coupons, or which would affect the
provision made for their payment or security, or in any
manner questioning the proceedings or authority concerning
the issuance of said Bonds and interest coupons, and that so
far as we know and believe no such litigation is threatened.
(f) That neither the corporate existence nor boundaries
of said issuer is being contested; that no litigation has
been filed or is now pending which would affect the authority
of the officers of said issuer to issue, execute, and deliver
said Bonds and interest coupons, and that no authority or
proceedings for the issuance of said Bonds and interest
coupons have been repealed, revoked or rescinded.
(g) That we have caused the official seal of said
issuer to be impressed, or printed, or lithographed on each
of said Bonds; and said seal on said Bonds has been duly
adopted as, and is hereby declared to be, the official seal
of said issuer.
EXECUTED and delivered this
AL d GNATURES OFFICIAL TITLES
Or
^-e
Mayor, City of Corpus Christi
City Secretary, City of
Corpus Christi
The signatures of the officers subscribed
above are hereby certified to be true and
genuine.
CORPUS CHRISTI NATIONAL BANK
BANK
By
Authors ed Officer
( BANK, SEAL )
APPROVED AS TO FORM AND CORRECTNESS this the27�` lay of
July, 1981.
C
C j'pus Christi, Texas
Attorney, City of
CERTIFICATE CONCERNING OFFICIAL STATEMENT
THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
On behalf of the City of Corpus Christi, Texas (the
"City") we the duly appointed and acting City Manager and
Director of Finance of the City do hereby certify that the
Official Statement prepared for use in connection with the
offering and sale of City of Corpus Christi, Texas First
Lien Waterworks System Revenue Bonds, Series 1981, has been
authorized and approved by the City Council of the City, and
to the best of our knowledge and belief and after reasonable
investigation:
(a) Neither the "Official Statement" nor any amendment
or supplement thereto contains any untrue statement of a
material fact or omits to state a material fact required to
be stated therein or necessary to make the statements therein
in light of the circumstances in which they were made,
misleading;
(b) Since the date
of the "Official Statement"
not
no
event has occurred which should have been set forth in an
amendment or supplement to the "Official Statement" which
has not been set forth in such amendment or supplement; nor
(c) Has there been any material adverse change in the
operation or financial affairs of the City since the date of
such "Official Statement".
DATED the Z2—day of July, 1981.
(SEAL)
ATTEST:
City Manager, Ci of
Corpus Christi, Texas
D rector of Fina ce
Corpus Christi, Te
City' Secretary, City of
Corpus Christi, Texas
APPROV P. Zz JULY, 1980
'ssi % A' alley
4
ry
GENERAL CERTIFICATE
THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
We, the undersigned, hereby officially certify that we
are the Mayor, City Secretary and Director of Finance,
respectively, of said City, and we further certify as follows:
1. That said City is a duly incorporated Home Rule
City, having more than 5000 inhabitants, operating and
existing under the Constitution and laws of the State of
Texas and the duly adopted Home Rule Charter of said City,
which Charter has not been changed or amended since November
19, 1980, the date the ordinance was passed by the City
Council authorizing the most recently dated, issued and out-
standing obligations of said City.
2. That no litigation of any nature has ever been
filed pertaining to, affecting or contesting: (a) the issu-
ance, delivery, payment, security or validity of the proposed
City of Corpus Christi, Texas First Lien Waterworks System
Revenue Bonds, Series 1981, dated July 10, 1981, in the
aggregate principal amount of $25,000,000; (b) the authority
of the officers of said City to issue, execute and deliver
said bonds and interest coupons; or (c) the validity of the
corporate existence or the Charter of said City; and that no
litigation is pending pertaining to, affecting or contesting
the boundaries of said City.
3. That on the 22nd day of July, 1981, the date an
ordinance was passed authorizing the issuance of City of
Corpus Christi, Texas First Lien Waterworks System Revenue
Bonds, Series 1981, and at the present time, the following
persons were and are the duly elected or appointed and
qualified officials of said City:
Luther Jones,
Betty N. Turner,
Jack K. Dumphy,
Bob Gulley,
Herbert Hawkins, Jr.,
Dr. Charles Kennedy,
Cliff Zarsky,
R. Marvin Townsend,
J. Bruce Aycock,
Harold F. Zick,
Bill G. Read,
Mayor,
Mayor Pro -Tem,
Councilmen,
City Manager,
City Attorney,
Director of Finance,
City Secretary.
4. That none of the revenues or income of said City's
Waterworks System have been pledged or encumbered to the
payment of any debt or obligation of said City or said Sys-
tem, except in connection with the aforesaid Series 1981
Bonds and the outstanding bonds of City of Corpus Christi,
Texas, Junior Lien Waterworks System Revenue Bonds, Series
1975 and City of Corpus Christi, Texas, Junior Lien Water-
works System Revenue Bonds, Series 1977.
5. That the City is not in default in respect to any
of the covenants or in making any payment required by any of
the ordinances that authorized the issuance of such out-
standing bonds or the ordinance authorizing the issuance of
the Series 1981 Bonds.
•
SIGNED AND SE ED is the 22x�d)3y of uly, 1981.
vv/
z
Cit Secretary
City of Corpus Christi,
Texas
'L1
ura or
ity of 'orpus Christi,
Texas
�Director of ce
City of Corpus Christi,
Texas
(SEAL) �f
APPROVED AS TO FORM AND CORRECTNESS this 22—' day of
July, 1981.
Ci Attorney,i9fr-.
C'Ty of Corpus Christi,
T as
REVENUE CERTIFICATE
THE STATE OF TEXAS .
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
i, the undersigned, Director of Finance of said City,
hereby certify as follows:
1. That this certificate is being given for the benefit
of the Attorney General of the State of Texas and the pur-
chasers and subsequent holders of City of Corpus Christi,
Texas First Lien Waterworks System Revenue Bonds, Series
1981, in the aggregate principal amount of $25,000,000.
2. That the Net Revenues of the waterworks system of
said City have been as follows for the years indicated below:
Fiscal Year Net
Ending 7-31 Revenues
1980
1979
1978
1977
1976
$ 5,274,337
5,326,432
4,562,034
3,625,969
3,342,307
SIGNED AND SEALED this the ,gjj day of July, 1981.
Director of Finance/ ity of
Corpus Christi, Te s
ATTEST:
Cit Secretary, Ci y of
Corpus Christi, Texas
(SEAL)
