HomeMy WebLinkAbout0778 ORD - 10/28/1937623
APPROVED AS TO LEGAL FORM:
R. Briscoe King
City Attorney.
The above Resolution was passed by the following vote:
A. C. McCaughan Aye
Joe Mireur Aye
C. 0. .Watson Aye
D. A. Segrest Aye
Thos. R. McGee Aye
THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
ON THIS, the 28 day of October, A. D. 1937, the CCity Council of the City of
Corpus Christi, Texas, convened in regular session at the time and date specified there-
for, at the City Hall in the City of Corpus Christi, Texas; the following members being
present, to -wit:
A. C. McCAUGHAN MAYOR
JOSEPH LIIREUR
C. 0. WATSON COMMISSIONERS
THOMAS R. McGEE
And the following member being absent, to -wit:
D. A. SEGREST 1
COMMISSIONER
WHEREUPON, Joseph !1ireur presented the following Ordinance:
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 4-1/4th; PER ANNULI, IN-
TEREST 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), PRESCRIBING THE FORM OF BOND, PLEDG-
ING 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 HOLDERS 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.
WHEREAS, at an election duly and legally held in the City of Corpus Christi
on the 29th day of September, A. D. 1937, a majority of the duly qualified voters of said
City, who are owners of taxable property in said City, who have duly rendered the same for
taxation, voting at said election, voted in favor of THE ISSUANCE OF SIX HUNDRED FIFTY
THOUSAND DOLLARS ($650,000.00) IN BONDS, PAYABLE SOLELY OUT OF THE REVENUES OF THE GAS
SYSTEM OF THE CITY OF CORPUS CHRISTI AS IT NOW EXISTS AND MAY BE HEREINAFTER IMPROVED AND
EXTENDED FOR THE PURPOSE OF CONSTRUCTING AN ADDITIONAL WATER TRANSMISSION LINE FROM CALALLEN
TO THE'CITY OF CORPUS CHRISTI AND FOR MAKING OTHER IMPROVEMENTS TO SAID ;"CATER SYSTEM, WHICH
ISSUE OF BONDS SHALL CONSTITUTE A CHARGE AGAINST THE REVENUES DERIVED FRO:I THE GAS SYSTEM
OF THE CITY OF CORPUS CHRISTI; the vote thereon being One Thousand, One Hundred Twenty-one
(1,121) votes for the issuance of the Bonds and Two Hundred Seventy-nine (279) votes against
the issuance of the bonds. And,
WHEREAS, at the same election, held on the same date, the duly qualified
voters, who are the owners of taxable property in said City, who have duly rendered the same
for taxation, voting at said election, voted in favor of the ISSUANCE OF ONE HUNDRED THOUSAND
DOLLARS ($100,000.00) IN BONDS, PAYABLE SOLELY OUT OF THE REVENUES OF THE GAS SYSTEM AS IT NOIR
EXISTS AND MAY BE HEREAFTER IMPROVED FOR THE PURPOSE OF EXTENDING'AND REHABILITATING THE GAS
SYSTEM AND MAKING OTHER IMPROVEMENTS THERETO, WHICH ISSUE OF BONDS SHALL CONSTITUTE A CHARGE
AGAINST THE REVENUES DERIVED FROM THE GAS SYSTEM OF THE CITY OF CORPUS CHRISTI, by a vote
of One Thousand, Eighty-four (1,084) for the issuance of the bonds and Two Hundred Eighty-
one (281) against the issuance of the bonds.
WHEREAS, at said election, said City Council, by the votes of the duly qualified.
voters, as hereinbefore specified, was authorized to issue bonds in the sum of SEVEN
HUNDRED FIFTY THOUSAND DOLLARS ($750,000.00), to bear interest at the rate of four and one-
fourth per cent (4-1/4th;) per annum and to mature serially over a period of years not
exceeding twelve (12) years
BE IT ORDAINED BY.THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS:
Section 1:. That the Bonds of said City, as hereinbefore provided, shall be
called "CITY OF CORPUS CHRISTI, TEXAS GAS SYSTEM REVENUE BONDS, SERIES 1937.", be issued
under and by virtue of the.Special city Charter of the City of Corpus Christi, Texas,
and the Constitution and Laws of the.. State of Texas, for the purpose of constructing an
additional water Transmission Line from Calallen to the City of Corpus Christi, Texas, and.
for making other improvements to said Water System; and for the purpose of extending,
improving and rehabilitating the Gas System of the City of Corpus Christi, Texas.
Section 2: That said Bonds shall be numbered consecutively from 1 to 750, both
inclusive, and shall be of the denomination of ONE THOUSAND DOLLARS ($1,000.00) each and
aggregating the principal sum of SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($750,000.00).
Section 3: That said Bonds shall be dated on the first day of November, A. D.
1937, and shall be due and payable serially according to the following schedule, on
November 1st:
BOND NUMBERS DATE OF MATURITY AMOUNT
1 to 51 Exclusive' .1938 $50,000.00
51 to 101 " 1939 $50,000.00
101 to 156., " 1940 $55,000.00
156 to 211.. " 1941 $55,000.00
211 to 271. It 1942 $60,000.00
271 to 331 1943 $60,000.00
331 to 396 . " 1944 $65,000.00.
396 to 461 " 1945 $65,000.00
461 to 531 " 1946 $70,000.00
531 to 601 " 1947 $70,000.00
601 to 676 " 1948 $75,000.00
676 to 750 Inclusive 1949 $75,000.00
Section 4: Said bonds shall bear interest at the rate of four and one-fourth
per cent (4-1/4tho) per annum, payable and to become due on the first day of May, A. D.
1938, and semi-annually thereafter on the first day of November'and May of each year while
said bonds, or any of them, are outstanding.
Section 5: That the principal and interest of said bonds shall be payable
upon the presentation and surrender of the bonds or proper coupons at the Corpus Christi
National Bank in Corpus Christi, Texas.
Section 6: That each of said bonds shall be signed by the Mayor, countersigned
by the City Secretary and registered by the City Treasurer, and the corporate seal of the
City of Corpus Christi shall be impressed upon each of them, but the facsimile signatures
of the Mayor and City Secretary may be lithographed on the coupons attached to said bonds
Com,' ‘L1. 10
MICROFILMED JAN 0 6 1969
and shall have
NO. -
the same effect as if they had been signed by them.
Section 7:•The form of said bonds shall be substantially as follows:
$
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI, TEXAS, GAS SYSTEM REVENUE
BONDS, SERIES 1937
The City of Corpus Christi, in the County of Nueces, State of Texas, a
municipal corporation duly incorporated and existing under and by virtue of the laws of the
State of Texas, for value received, hereby promises to pay to the bearer hereof on the
day of , 19 , the sum of
ONE THOUSAND DOLLARS
01000.00) in lawful money of the United States of America, with interest thereon from the
date hereof at the rate of four and one-fourth per cent (4-1/4thg) per annum, interest payable
n' the first day of May, A. D. 1938, and semi-annually thereafter on the first day of May
and first day of November of each year, principal and interest payable upon presentation and
surrender of bond or proper coupon at the office of the CORPUS CHRISTI NATIONAL BANK, in the
City of Corpus Christi, Nueces County, Texas.
THIS BOND is one of a series of seven hundred fifty (750) bonds, numbered
consecutively from 1 to 750, both inclusive, each being of like tenor and effect except as
to number and maturity, and being of the denomination of ONE THOUSAND DOLLARS ($1,000.00)
each, issued by the City of Corpus Christi, Texas, for the purpose of constructing an
additional Water Transmission Line from Calallen to the City of Corpus Christi, Texas, and
for making other improvements to said Water System; and for the purpose of extending, im-'
proving and rehabilitating the Gas System of the City of Corpus Christi, Texas, in accordance
with the Constitution and Laws of the State of Texas, and the Special City Charter of the
City of Corpus Christi, Texas, and under and by virtue of the authority of a vote of the
qualified electors of said City, who own taxable property in said City and who have duly
rendered the same for taxation,. voting at an election held on the 29th day of September,
A. D. 1937, and pursuant to an ordinance passed by the City Council,4uly recorded in the
Ordinance and Resolution Records of said City Council.
THE PRINCIPAL AND INTEREST of said Bonds and this Bond are payable out of a
fund created out of the net operating revenues of the Gas System of the said City of Corpus
Christi. And to secure the payment of this Bond and the series of which it is one, the City
of Corpus Christi has irrevocably pledged, and has, and will continue to set aside, as it
accrues, a sufficient amount of the said net operating revenues of the Gas System, to pay the
principal and interest of the said Bonds and this Bond, at the maturity thereof, and said
funds so created shall be used for no other purpose.
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.
THIS BOND is subject to the condition, and every holder hereof, by accepting
the same, agrees with the obligor and every subsequent holder or holders hereof (a), that
the delivery by any bearer of this bond shall vest title in this bond and the interest
represented thereby in the transferee to the same extent for all purposes as would be delivery
under like circumstances of any negotiable instrument payable to bearer; (b) that the obligor
may treat the bearer of this bond as the absolute owner hereof for all purposes and shall not
be affected by any notice to the contrary; (+) that the principal of and the interest on.this
bond will be paid, and such principal and interest are transferable, free from and without
regard to any equities between the obligor and the original, or any intermediate holder or
holders hereof, or set -offs or counter -claims; (d) that the surrender to the obligor by the
bearer of this bond, and each of the coupons,- shall be a good discharge to the obligor for.
the same.
IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED, that all acts, conditions,
and things necessary to be done precedent to and in the issuance of this series of bonds and
of this bond, in order to make them legal, valid, and binding obligations of said City,
have been done, have happened and have been performed in due and regular time, form and
manner, as required by law. That the issue of bonds, of which this is one, together with
all other indebtedness of said City is within every debt or other limit prescribed by the
Constitution and law of the State of Texas, and the Special Charter of the City of Corpus
Christi, Texas; and that provision has been made for the payment of the principal and
interest of this bond and series of which it is a part by irrevocably pledging revenues of
the Gas System of said City of Corpus Christi, as hereinabove stated.
IN TESTIMONY WHEREOF, the City of Corpus Christi, by its Council, has caused
its corporate seal to be affixed hereto and this Bond to be signed by its Mayor, counter-
signed by its City Secretary, and registered by its City Treasurer, and the interest coupons
hereto attached to be executed by the lithographic signatures of the said Mayor and City
Secretary.
THE DATE of this Bond, in conformity with the Ordinance above referred to, is
the first day of November, 1937.
MAYOR, CITY OF CORPUS CHRISTI, TEXAS.
COUNTERSIGNED:
CITY SECRETARY, CITY OF CORPUS
CHRISTI, TEXAS.
REGISTERED, This the day of , 1937.
CITY TREASURER, CITY OF CORPUS
CHRISTI, TEXAS.
Section 8: The form of interest coupon attached to each of said bonds shall
be substantially as follows:
NO. $21.25
On the first day of
Th e City of Corpus Christi will pay to the bearer from the revenues of the
City's Gas System, after deduction of expenses of operation and maintenance thereof, at the
CORPUS CHRISTI NATIONAL BANK, Corpus Christi, Nueces County, Texas, the sum of
TWENTY-ONE AND TWENTY-FIVE/100 DOLLARS
($21.25) in lawful money of the United States of America, being six (6) months interest on
the CITY OF CORPUS CHRISTI, TEXAS, GAS SYSTEM REVENUE BONDS, SERIES 1937, Dated
1937. Bond NO.
MAYOR, CITY OF CORPUS CHRISTI, TEXAS.
CITY SECRETARY, CITY OF CORPUS
CHRISTI, TEXAS.
Section 9: The following certificate shall be printed on the back of each
bond:
OFFICE OF COMPTROLLER
STATE OF TEXAS
I HEREBY CERTIFY that there is on file and of record in my office a
certificate of the Attorney General of the State of Texas to the effect that this bond
has been examined by him, as required by law, and that he finds that it has been issued in
conformity with the Constitution and Laws of the State of Texas and the Charter of the City
of Corpus Christi, Texas, and that it is a valid and binding special obligation of said City
of Corpus Christi, payable from the revenues pledged to its payment by and in the Ordinance
authorizing same, and said bond has this day been registered by me.
WITNESS !Y HAND AND SEAL OF OFFICE, at Austin, Texas, this the day of
, 1937.
COMPTROLLER OF PUBLIC ACCOUNTS OF
THE STATE OF TEXAS.
Section 10: For the benefit of the original purchaser and all subsequent
holders of said bonds, coupons, or any part thereof, the City of Corpus Christi agrees to
and adopts as part of its contract with the said bond holders all of the terms and provisions
of Article 1113 of the Revised Civil Statutes of Texas, of 1925, as amended by Acts 1927
40th Leg., p. 276, Ch. 194; Acts 1932, 42nd Leg., 3rd C. S., p. 96, Ch. 32; and Acts 1933,
43rd Leg., p. 320, Ch. 122.
Section 11: That a special fund is hereby created and designated as "CITY OF
CORPUS CHRISTI GAS SYSTEM REVENUE BOND FUND" and shall be set aside out of the net operating
revenues of the Gas System and which fund shall be used for the payment of principal and
interest of said bonds at maturity thereof and for no other purpose, and that to create
said fund a sufficient amount of all income and revenues of said Gas System is hereby
irrevocably pledged and set aside, and such income and revenue shall at all times be
sufficient to pay promptly the principal and interest due on said bonds at the maturity of
-the same, and the City hereby covenants and agrees that it will duly and punctually deposit
with the Corpus Christi National Bank of Corpus Christi, Texas, in said fund annually, the
following aggregate amounts out of the revenues of its Gas System, and which deposits are to
be held by said Corpus Christi National Bank in trust and applied solely for the purpose
herein stated.
DURING THE YEAR ENDING AMOUNT
November 1, 1938 $81,875.00
November 1, 1939 79,750.00
November 1, 1940 82,625.00
November 1, 1941 80,287.00
November 1, 1942 82,950.00
November 1, 1943 80,400.00
November 1, 1944 82,850.00
November 1, 1945 80,087.00
November 1, 1946 82 325.00
November 1, 1947 79,350.00
November 1, 1948 81,375.00
November 1, 1949 78,187.00
Such total amounts shall be deposited in equal monthly installments on or before
the 15th day of each month.
The City Treasurer is hereby authorized and directed to pay out of said fund in the
Corpus Christi National Bank of Cornus Christie Texa ,20,, n int, fnr +-hn l -y spept
reasonable safe -guards, to inspect the Gas System and all records, accounts and data of the
City relating thereto.
Section 17: That the Mayor. of said City shall be and is hereby authorized
to take and have charge of all necessary orders and records pertinent to the bonds hereby
authorized pending the investigation thereof by the Attorney General of the State of Texas,
and the Mayor shall also take and have charge and control of the bonds herein authorized
pending their approval by the Attorney General and their registration by the Comptroller of
public Accounts.
Section 18: 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 suspension of the Charter Rule providing that no ordinance
or resolution shall be passed 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 28 day of Oct. 1937.
APPROVED This 28 day of Oct. 1937.
A. C. McCaughan
MAYOR, CITY OF CORPUS CHRISTI, TEXAS.
ATTEST:
T. R. Kring
CITY SECRETARY
(SEAL)
Corpus Christi, Texas
October 28, 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,
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 ABSENT
THOMAS R. McGEE AYE
JOSEPH MIREUR AYE
The above Ordinance was passed by the following vote:
A. C. McCIIUGHAN AYE
C. 0. WATSON AYE
D. A. SEGREST ABSENT
THOMAS R. McGEE AYE
JOSEPH MIRE'UR AYE