HomeMy WebLinkAbout02151 ORD - 09/16/1947STATE OF TEXAS
COUNTY OF IQJECES 0 -
on this the /Z) ay of 1947, the City
Council of the City of Corpus Christi, �exas, convened in regular session
meeting with the following members of said Council present, to -wit;
4esley E. Seale, Mayor
George R. Clark, Jr.
John IL. Ferris % Commissioners
R. R. Henry (t
A. C. 11olbeck, City Secretary
ith the following absent; Joe T. Davison, constituting a quorum, at
which time the following among other business was transacted:
Hr. ;Wesley E. Seale, mayor, presented for the consideration
of the Council an Ordinance. The Ordinance was read by the City Secre-
tary. The L4ayor presented to the Council a communication in writing
pertaining to said proposed Ordinance, as follows;
Corpus Christi, Texas
September 16, 1947
TO TI-M CITY COMMIL
Corpus Christi, Texas
Gentlemen;
There is an outstanding judgment against the City of Corpus
Christi in favor of Fred P. Hayward, et al, same having been handed down
in Cause Ido. 2666 by the Court of Civil Appeals, 10th Supreme Judicial
District, .aaco, Texas, and having been affirmed by the Supreme Court
of the State of Texas, said judgment being in the sum of One ITillion
Eight Hundred and Thirty -three Thousand Five Hundred and Fifty -eight
Dollars and Seven Cents (;;1,833,558.07) and bears interest at the rate
of six (6, %) per cent per annum from 14ay 5, 1945, to the date it is paid
off. The total amount of said judgment, interest and court costs is
Two I.4illion One Hundred and Twenty Thousand Dollars (w2,120,000.00).
It is essential that this judgment be paid off in accordance with the
mandate handed down by the Court of Civil Appeals, following the affirma-
tion of same by the Supreme Court of Texas. Delay in paying off the
aforesaid judgment would impair the credit of the City of Corpus Christi,
be a detriment to the financial structure of the City of Corpus Christi,
impair the city's development because of its inability to properly finance
needed improvements, and would cost the City an exorbitant sum of money
in the interest rate, which is six (6a) per cent per annum. Under
such circumstances, I request that the City Council pass the proposed
ordinance calling an election for the issuance of Two blillion One Hundred
and Twenty Thousand Dollars ("2,120,000.00) revenue bonds for the purpose
of retiring the aforesaid judgment, as an emergency measure. You will
please consider this request in connection with the ordinance which has
been introduced in the City Council on this subject.
Your Very truly,��
/e.,, . Seale, Mayor,
City of Corpus Christi, Texas
Mr. George R. Clark, Jr. made a motion that the Charter pro-
vision 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 emergency clause of the Ordinance. The
motion was seconded by Mr. John A. Ferris. The motion was carried by
a unanimous vote by the City Council, viz;
Ayes: Commissioners Clark-, Ferris and Henry.
Nayes; None.
14r. George R. Clark, Jr. made a motion that the Ordinance be
passed finally. The motion was seconded by Mr. R. R. Henry. The
motion was carried by the following vote:
Byes: Commissioners Clark, Ferris and Henry.
Nayes: None.
The Mayor requested that the records show that he voted Aye.
This was done.
The Mayor announoed that the Ordinance had been passed. The
Ordinance is as follows:
AN ORDINANCE NO./
BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS, CALLING AN ELECTION ON THE :yUESTION OF THE
ISSUANCE OF THE FOLLOWING BODIDS: TWO MILLION ONE
HUNDRED AID TWENTY THOUSAND DOLLARS 02,1203000.00)
RNVLIUE BONDS, PAYABLE OUT OF REVETT0ES OF M, `W &TER-
WORHS SYSTEP.4, PAYABLE SERIALLY WITHIN A PERIOD NOT
TO EXCEED TWZENTY (20) YEARS FROM THE DATE OF SUCH
BONDS, BLARING INTEREST NOT TO EXCEED THREE (3J) PER
CENT PER ANNUM, PAYABLE SEMI - ANNUALLY, SAID BONDS TO
BE REDEEMABLE AT THE OPTION OF THE CITY AT ANY INTER-
EST PAYING DATE AFTER THE END OF TEN YEARS (10) FROM
THE DATE OF ISSUANCE, FOR TIE PAYMENT OF M, JUDGMENT
IN THE CASE OF FRED P. HAYWARD, ET AL, VS. THE CITY
OF CORPUS CHRISTI, ET AL, SAME BEING CAUSE NO. 2666
ON THE DOCKET OF THE COURT OF CIVIL APPEALS, 10TH
SUPRELM JUDICIAL DISTRICT, WACO, TEXAS; SAID BONDS TO
BE SPECIAL OBLIGATIONS OF SAID CITY PAYABLE AS TO
BOTH PRINCIPAL AND INTEREST OUT OF TiM, REVEITUES OF
THE WATERWORKS SYSTEM WHICH SHALL INCLUDE ALL
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�a
PROPERTIES AND EVERYTHING PERTAINING THERETO THEN
G.41ED OR THEM&AFTER ACQUIRED, AND FURTHER SECURED
BY A LI D7 UPON THE PROPERTIES CONSTITUTING THE SYSTETAT
AND A LIEN UPON AND GRAI!T OF A FRANCHISE TO OPERATE
SUCH SYSTEM, IN TIE EVENT OF SALE OF SUCH SYSTEM
AFTER DEFAULT IN TI➢, PAYMENT OF SUCH R'E'VENUE BONDS
OR I1ITEREST THEREON; PROVIDING THt1T THE HOLDERS OF
SUCH BONDS, IF AUTHORIZED AND ISSUED, SHALL NEVER
RAVE Tiiu RIGHT TO D:;TFOUTD PAYI4731T THEIMOF OUT OF AF;Y
FUNDS RAISED OR TO BE RAISED BY TILKATION, PROVIDING
THAT IF AND 'iV -0,T �VENUL' BONDS IN TIM SUN.: OF TudO
I:,ILLION SIX HUNDRED AI'Til THIRTY THOUSAND DOLLARS
(32,630,000.00), ARE ISSUED SUBSEQUENT TO THE BOiIDS
ISSUED PURSUANT TO THIS ORDINANCE, IN ACCORDlliiCE WITH
THE LIMITATIONS CONTAINED IN THIS ORDIi4UM AND PUR-
MI NT TO ACTS OF 1945, OF THE 49TH LEGISLATURE, PAGE
605, CHAPTER 349, E1101'JN AS ARTICLE 1110a OF VERNON'S
ANNOTATED CIVIL STATUTES OF TEXAS, SECTION 2 THEREOF,
THE CHARGE OR PLEDGE OF TIED REVENUES AND LIEN TO
SECURE THS PAYliENT OF SAID BONDS IN THE SUN OF T'ViO
I'. ?ILLION SIX. HUNDRED IUTD THIRTY THOUSAND DOLLARS
($2,630,000.00) SHALL BE OF EQUAL DIGNITY i41TH THE
PLEDGE AND LIEN SECURING TILE WATERWORKS REVENUE BONDS ISSUED
PURSiPAN'T 10'. THIS ORDINANCE; DESIGNATING Kil PLACE
FOR HOLDING SUCH ELECTION AND NAMING M', OFFICERS
THEREFOR; DESCRIBING THE ;QUALIFICATIONS OF TIM VOTERS
'IVHO 'STILL BE AUTHORIZED TO VOTE AT SUCH ELECTION;
DESCRIBING FORLI OF NOTICE OF ELECTION, ENACTING PRO-
VISIONS INCIDENT AND RELATING TO THE SUBJECT OF THIS
OP,DINAXE AYM DECLARING AIV E],DMGklJCY.
OhEREAS, the City Council of the City of Corpus Christi, Texas,
deems it necessary and advisable to issue revenue bonds of said City
for the purposes hereinafter stated;
NOW, THEREFORE, BE IT ORDAINED BY TIIE CITY COUNCIL OF THE
CITY OF CORPUS CHRISTI, TEXAS:
SECTION 1. That an election be held on the Way of
1947, in said City, at which election the following proposition shall be
submitted to the resident qualified electors who rnvn taxable property
in said City and who have duly rendered the same for taxation:
PROPOSITION "A"
"Shall the City Council of the City of Corpus Christi, Texas, be
authorized to issue the revenue bonds of said City in the sum of
Two Million One Hundred and Twenty Thousand Dollars (2,120,000.00),
payable serially, within a period not to exceed twenty (20) years
from the date of such bonds, bearing interest not to exceed three (3j)
per cent per annum, payable semi - annually, said bonds to be redeemable
at the option of the City at any interest paying date after the end
of ten (10) years from the date of issuance, for the purpose of paying
a judgment against the City of Corpus Christi handed down by the Court
of Civil Appeals of the 10th Supreme Judicial District, Waco, Texas,
in Cause No. 2666 on the docket of said court, styled Fred P. Hayward,
et al, vs. The City of Corpus Christi, at al, and affirmed by the
Supreme Court of the State of Texas, as authorized by the Charter of
the City of Corpus Christi, Texas, and the general laws of the State
of Texas in pursuance of Article 1110a of Vernonts Annotated Civil
Statutes of Texas, as passed by the 49th Legislature, Acts of 1945,
page 605, Chapter 349, said bonds to be payable as to both principal
and interest out of the revenues of the City's waterworks system
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after deducting reasonable operations and maintenance expenses, which
system shall include all properties and everything pertaining thereto
then owned or thereafter acquired, and said bonds may be further se-
cured by a lien upon the properties constituting the waterworks system
and a lien upon and a grant of a franchise to operate such system,
in the event of sale of such system after default in the payment of
such revenue bonds or interest thereon, and said charge or pledge of
the revenues and lien to secure the payment of aforesaid bonds shall
be of equal dignity with the pledge and liens securing additional
Water Revenue Bonds in the sum of Two lallion Six Hundred and Thirty
Thousand Dollars (;;2,630,000.00), if and when said additional revenue
bonds are subsequently issued in accordance with Article 1110a,
Section 2, Vernon's Annotated Civil Statutes of Texas, as passed by
the 49th Legislature, Acts of 1945, Page 605, Chapter 349 ?"
SECTION 2. In the event said bonds are authorized to be
issued by a majority vote of the qualified voters of said City, voting
at said election and the same are issued and sold, holder or holders
of such bonds shall never have the right to demand payment thereof
out of any funds raised or to be raised by taxation; and such bonds
issued or executed in pursuance of such election shall contain this
clause. "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."
SECTION 3. If and when additional waterworks revenue bonds
are issued subsequent to the bonds issued pursuant to this ordinance,
and in accordance with the limitations contained in this ordinance, such
additional waterworks revenue bonds to be in the sum of Two Million Six
Hundred and Thirty Thousand Dollars (;`~2,630,000.00) for the purpose of
making improvements, extensions, repairs, or replacements of and to the
waterworks system of aforesaid City, such additional revenue bonds
shall be secured by a pledge of the revenues of the waterworks system
and lien upon the properties constituting such system and upon the fran-
chise of equal dignity with the pledge and lien securing the bonds issued
pursuant to this ordinance. The above mentioned additional bonds are to be
payable serially, within not to exceed twenty (20) years from the date
of such bonds, bearing interest not to exceed three (3;) per cent per
annum, payable semi - annually, to be redeemable at the option of the City
at any interest paying date after the end of ten (10) years from the
date of issuance, as authorized by the Charter of the City of Corpus
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Christi and the general laws of the State
of Texas and in pursuance
of Article 1110a, Vernon's Annotated Civil Statutes of Texas, passed
by the 49th Legislature, Acts of 1945, Page 605, Chapter 349, and in
accordance with Article 1111 and Articles
1113 to 1118, both inclusive,
of the Revised Civil Statutes of Texas as
amended.
SECTION 4. Said election shall
be conducted and held by
the hereinafter named presiding judges in
the hereinafter named pre-
cincts of the City of Corpus Christi and
at the respective voting
boxes hereinafter named, to-wit-
POLLING PLACE
BOND ELECTION PRECINCT NO. 1
Nueoes County Courthouse
T. J. Dineen, Presiding Judge
Mrs. Olive Dineen, Assistant Judge
H. D. C. Gussett, Clerk
Geo. Peters, Clerk
BOND ELECTION PRECINCT NO. 2
Civic Center, 700 S. Broadway
N. D. Huie, Presiding Judge
Miss Dorothy Shely, Assistant Judge
Mrs, Marjorie Paul, Clerk
Mrs. Josephine Shely, Clerk
BOND ELECTION PRECINCT N0. 3
Morgan Street Fire Station,
1101 Morgan Avenue
Mrs. G. E. Meisenheimer, Presiding Judge
Mrs. Henry McGregor.. Assistant Judge
Mrs. F. E. Peckenpaugh, Clerk
Mrs, Harry yells, Clerk
BOND ELECTION PRECINCT N0. 4 Edward Furman School, Room 1.
1115 Chamberlain
Mrs. L. M. Hulbirt, Presiding Judge
Mrs. Robt. Pinson, Assistant Judge
Mrs. T. E. Sparks, Clerk
Mrs. J. H. Seagle, Clerk
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BOND ELECTION PRECINCT NO. 5
G. C. Richardson, Presiding Judge
Henry Altenburg, Assistant Judge
Mrs. M. Herrera, Jr., Clerk
Mrs. R. N. Richardson, Clerk
BOND ELECTION PRECINCT N0. 6
Mrs. F. M. Thomason, Presiding Judge
Mrs. Richard Bluatzer, Assistant Judge
Mrs. Harmon McNeill, Clerk
Mrs. Florence Hunter, Clerk
BOND ELECTION PRECINCT N0. 7
Herbert Wienken, Presiding Judge
Mrs. Herbert Menken, Assistant Judge
Mrs. W. W. Maxwell, Clerk
Mrs. O. M. Hobbs, Clerk
BOND ELECTION PRECINCT NO. 8
Mrs. E. H. Andrew, Presiding Judge
Mrs. P. A. Tom, .Assistant Judge
Mrs. Ban E. Shaw, Clerk
Mrs. C. B. Ross, Clerk
BOND ELECTION PRECINCT NO. 9
Morris E. Mite, Presiding Judge
Mrs. N. A. Easter, Assistant Judge
Mrs. F. A. Martin, Clerk
Mrs. Florence D. Frech, Clerk
POLLING PLACE
Leopard Street Fire Station,
1829 Leopard Street
New Fire Station, 3312 Leopard Street
Stephen F. Austin School, Morgan Ave.
Sam Houston School,, 3Wf4orton
Manger School, 2209 S. Alameda
SECTION 5. That said election shall be held in accordance
with the provisions of the Statutes and Taws of the State of Texas, and
only the qualified electors residing in said City who own taxable prop-
erty in said City, and who have duly rendered same for taxation, shall
be qualified to vote.
SECTION 6. The polls will be open from 8 o'clock a.m. to 7
o'clock p.m.
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1111 voters desiring to support the proposition to issue revenue
bonds for the payment of the judgment held by Fred P. Hayward, et al,
against the City, shall have written or printed on their ballots the
following words:
"PROPOSI'TIo nAa :.
FOR THE ISSUAZICE OF REVENUE BONDS FOR PAYI NT OF
HAYiNkRD J7DGl ENT."
And those opposed to the proposition to issue the said revenue bonds for
the payment of said judgment shall have written or printed on their
ballots the following words:
"PROPOSITIOP? "A"
AG'LINST THE ISSUANCE OF REVL1,!UB BO10S FOR THE PAYPISNT
OF THE HAYWARD JUDGIENT."
SECTION 7. The manner of holding said election shall be as
prescribed by Chapter 1 of 'Title 22 of the Revised Civil Statutes of Texas.
SECTION 8. A substantial copy of this Ordinance, signed by
the Mayor of the City of Corpus Christi, and attested by the City Secre-
tary, shall serve as a proper notice of ordering said election and the
Mayor is directed to cause a copy of this ordinance, signed by him, to
be posted at the City Hall and at each of the voting places hereinabove
named not less than fifteen (15) days prior to said election, and to have
a copy of this Ordinance published in the CORPUS CHRISTI PRESS, the
official newspaper, and in the CORPUS CHRISTI CA1L3R; both being news-
papers of general circulation, published within the City of Corpus Christi;
said publication to be made on the same day in each of two successive weeks
prior to the date of the election and the date of the first publication to
be not less than fourteen (1)) days prior to the date of said election.
SECTION 9. The fact that the payment of the judgment to
Fred Y. Hayward, et al, is necessary to preserve the credit of the
City of Corpus Christi and to conform to the mandate handed down by
the Court of Civil Appeals, 10th Supreme Judicial District of Texas creates
a public emergency and imperative necessity requiring the suspension
of the Charter rule that no ordinance or resolution shall be passed
finally on the date it is introduced and that such ordinance or resolution
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shall be read at three several meetings of the City Council, and
the Mayor having declared that such public emergency and imperative
necessity exist, and having requested that such Charter rule be sus-
pended, and that this ordinance be passed finally on the date of its
introduction and take effect and be in full force and effect from and
after its passage, IT IS ACCORDINGLY SO ORDAINED.
PASSED AND APPROVED this 16+M&y o£ �, A. D.
1947•
0
City of Corpus Christi, Texas
ATTEST:
a, (D,
- City secretary
APPROWn AS Tn UMUT. F(1 V,