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HomeMy WebLinkAbout0794 ORD - 12/02/1937 THE STATE OF TEXAS 1 COUNTY OF NUECES 1 CITY OF CORPUS CHRISTI I ON THIS, the 2nd day of December, A. D. 1937, the City Council of the City of Corpus Christi, Texas. convened in Regular Meeting at the time and date specified therefor, the City Hall in the City of Corpus Christi, Texas; the following members thereof being present, to -wit: The A. C. McCAUGHAN C. 0. WATSON D. A. SEGREST THOS. R.; McGEE I MAYOR 1 1 1 C OMNI I S S I ONERS following member thereof being absent, to -wit: JOSEPH MIREUR 1 COMMISSIONER WHEREUPON, D. A. Segrest presented the following Ordinance:, AN ORDINANCE SUPPLEMENTING AN ORDINANCE HERETOFORE PASSED BY THE CITY COUNCIL ON THE 28th DAY OF OCTOBER, 1937, AUTHORIZING THE ISSUANCE OF $750,000.00 OF CITY OF COR- PUS CHRISTI, TEXAS GAS SYSTEM REVENUE BONDS, SERIES 1937, BY RATIFYING AND'CONFIRMING THE CONTRACT FOR THE SALE OF SAID BONDS, MAKING THIS ORDINANCE A PART OF THE CONTRACT OF SALE, PRESCRIBING THE USE TO BE MADE OF THE PROCEEDS, PRESCRIBING CERTAIN DUTIES OF THE CITY AND ITS OFFICERS, AND DECLARING AN EMERGENCY. ' a WHEREAS, on the 28th day of October, 1937, the City Council passed an Ordinance entitled: "AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, AUTHORIZING THE ISSUANCE OF $750,000.00 OF CITY OF CORPUS CHRISTI, TEXAS GAS SYSTEM REVENUE BONDS, SERIES 1937, BEARING INTEREST AT THE RATE OF 4-1/4g PER ANNUM, INTEREST PAYABLE SEMI-ANNUALLY ON THE FIRST DAY OF MAY AND NOVEMBER OF EACH YEAR, PRINCIPAL TO MATURE SERIALLY OVER A PERIOD OF TWELVE YEARS, EACH BOND BEING OF THE DENOMINATION OF ONE THOUSAND DOLLARS ($1,000.00) PRES- CRIBING THE FORM OF BOND, PLEDGING THE REVENUES OF THE CITY GAS SYSTEM TO THE PAYMENT OF PRINCIPAL AND INTEREST OF THE BONDS AFTER PROVIDING FOR THE EXPENSE OF OPERATING SAID SYSTEM, MAKING CERTAIN COVENANTS OF THE CITY IN REFERENCE TO THE BONDS AND THE FUND FROM WHICH SAID PRINCIPAL AND INTEREST IS TO BE PAID, PROVIDING THAT THE HOLDER OR HO?DERS OF SAID BONDS SHALL NEVER HAVE THE RIGHT TO DEMAND PAYMENT OF SAID OBLIGATIONS OUT OF ANY FUNDS RAISED OR TO BE RAISED BY TAXATION, PROVIDING FOR THE MAYOR TO TAKE CHARGE OF SAID BONDS PRIOR TO THE SALE THEREOF, AND DECLARING AN EMERGENCY"; and WHEREAS, the City Council, on the 28th day of October, 1937, adopted a resolution awarding said $750,000.00 of bonds to a syndicate of buyers as listed in said resolution; and, WHEREAS, the City is preparing to deliver, and saidpurchasers are preparing to accept delivery of said bonds in accordance with the Ordinance submitting the proposition for the issuance of said bonds to the voters, the Ordinance authorizing the issuance of the bonds and the contract for the purchase thereof; and, WHEREAS, it is considered to the best interest of the City and is required by said purchasers that, supplementary to the Ordinance authorizing the issuance of said bonds, an Ordinance be passed more clearly evidencing the intention and obligations of the City pursuant to said Election, Bond Ordinance and Resolution authorizing the sale of said bonds, which shall constitute a contract between the City and the Purchasers and subsequent holders .of said bonds; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1: .The sale of said $750,000.00 of bonds to the syndicate of purchasers as shown in the resolution adopted on the 28th day of October, 1937 is hereby ratified, and confirmed and the provisions of this Supplemental Ordinance are made a part of.the obligation to purchase and the obligation to sell and deliver said bonds, and the terms and conditions hereof and the obligations hereunder are declared to be for the benefit of said original purchasers and subsequent holders of said bonds. SECTION 2: That in accordance with the propositions submitted,to the voters in reference to said $750,000.00 of bonds, in accordance with law and in accordance with the contract between the City and the Purchasers and subsequent holders of said bonds, the pro- ceeds from the sale of said bonds will be deposited and adequately secured as provided by law and by the Charter of the City, in such manner that (a) $650,000.00 thereof will be expended for the purpose of constructing an addi- tional water transmission line from Calallen to the City of Corpus Christi and for making other improvements to said water system; and (b) $100,000.00 will be extended for the purpose of extending and rehabilitating the gas system and making other improvements thereto; SECTION 3: That the City to date has taken such steps as are prescribed by law and by its Charter precedent to the letting of construction contracts and the expenditure of said funds; an Ordinance supplementing an Ordinance heretofore passed by the City Council on the 28th day of October, 1937, authorizing the issuance of $750,000.00 of City of Corpus Chris Texas Gas System Revenue Bonds, Series 1937, by ratifying and confirming the contract for the i 7 38 sale of said bonds, making this Ordinance a part of the contract of sale, prescribing the use to be made of the proceeds, prescribing certain duties of the City and its officers, and declar- ing an emergency. That the City will take such steps in the future as may be required by law and its Charter precedent to the expenditure of said funds. SECTION 4: Neither the original purchasersof said bonds nor subsequent holders shall be under any obligation or have any responsibility in reference to the disposition or expenditure of said funds by said City. SECTION 5: The fact that it is necessary to obtain the funds for the purpose of making immediate provisions for the construction of the Water Transmission Line from Calallen to the City of Corpus Christi and to make other improvements to the Water System; and for the purpose of extending and rehabilitating the Gas System, to meet the public demand for utility service and to meet the added requirements upon both of said Systems, due to the growth of the City of Corpus Christi, creates a public emergency and public imperative necessity requiring the suspendion of the Charter Rule providing that no Ordinance or Resolution shall be passed .16 finally on the day it is introduced except in cases of public emergency, and the Mayor having declared that such public emergency exists and requests that said Charter rule be suspended and that this Ordinance take effect and be in full force and effect from and after its passage, it is accordingly so ordained. PASSED THIS 2nd day of December, 1937. APPROVED THIS 2nd day`of December, 1937. Sgd, A. C. McCaughan Mayor, City of Corpus Christi, Texas SEAL ATTEST: Sgd. T. R. Kring City Secretary. Corpus Christi, Texas December 2, 1937 TO THE MEMBERS OF THE CITY COUNCIL OF THE CITY OF CORPUS,CHRISTI Corpus Christi, Texas Gentlemen: For the reasons set forth in the emergency clause of the foregoing Ordinance, a public emergency and an imperative public necessity exists for the suspension of the Charter rule or requirement that no Ordinance or Resolution shall be passed finally on the date it is introduced, and that such Ordinance or Resolution shall be read at three several meetings of the City Council, I, therefore, hereby request that you suspend said Charter Rule or require- ment and pass this Ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, (Sgd) A. C. McCaughan, Mayor, City of Corpus Christi, Texas The Charter rule was suspended by the following vote: A. C. McCaughan Aye C. 0. Watson Aye D. A. Segrest Aye Thos. R. McGee Aye Joseph Mireur Absent The above Ordinance was passed by the following vote: A. C. McCaughan Aye C. 0. Watson Aye D. A. Segrest Aye Thos. R. McGee Aye Joseph Mireur Absent