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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 -2- �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 -3- 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 -4- 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 -5- 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. -6- 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 -7- 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,