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HomeMy WebLinkAbout02152 ORD - 09/16/1947Corpus Christi, Texas 1947 TO THE CITY COUNCIL Corpus Christi, Texas Gentlemen: There is an outstanding judgment against the City of Corpus Christi in favor of Fred F. Hayward, et al, same having been handed down in Cause No. 2666 by the Court of Civil Appeals, 10th Supreme Judicial District, Waco, Texas, and having been affirmed by the Supreme Court of the State of Texas, said judgment being in the sum of One Million Light Hundred and Thirty -three Thousand Five Hundred and Fifty -eight Dollars and Seven Cents ($1,833,558.07) and bearing interest at the rate of six (6J) per cent per annum from May 5, 1945, to the date it is paid off. The total amount of said judgment, interest and court costs is Two Million One Hundred and Twenty Thousand Dollars ($2,120,000.00), 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 rates which are six (6n 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 Million One Hundred and Twenty Thousand Dollars (02,120,000.00) 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 subjeot. Yours very truly, z Weale E. Seale, Mayor, City of Corpus Christi, Texas. The Charter rule was suspended by the following votes Wesley E. Seale George R. Clark, Jr. John A. Ferris R. R. henry Joe T. Dawson The above ordinance was passed by the following vote. 'Tiesley E. Seale George R. Clark, Jr. — John A. Ferris R. R. Henry Joe T. Dawson 24 _6� 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. Mr, George R. Clark, Jr. made a motion that the Ordinance be passed finally. The motion was seconded by Mr. °R. Henry. The motion was carried by the following vote: Ayes: Commissioners Clark, Ferris and Henry. Nayes: None. The Mayor requested that the records show that he voted lye. This was done. The Mayor announced that the Ordinance had been passed. The Ordinance is as follows: AN ORDINANCE NO. ZL2 BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, CALLING AN ELECTION ON THE QUESTION OF THE ISSUANCE OF THE FOLLO'6JING BONDS: TWO MILLION SIX HUNDRED AND THIRTY THOUSAND DOLLARS (,$2,630,000.00) REVENUE BONDS, PAYABLE OUT OF REVk2TUES OF THE WATER- WORKS SYSTEM, PAYABLE SERIALLY T;'ITHIN A PERIOD NOT TO EXCEED T'NENTY (20) YEARS FROM THE DATE OF SUCH BONDS, BEARING INTEREST NOT TO EXCEED THREE (3/) PER CENT PER ANNUM, PAYABLE SEMI - ANNUALLY, SAID BONDS TO BE REDEEMABLE AT THE OPTION OF THE CITY AT ANY INTEREST PAYING DATE AFTER THE END OF TEN (10) YEARS FROM THE DATE OF ISSUANCE, FOR THE PURPOSE OF MAKING ITOPROVEWTS, EXTENSIONS, REPAIRS OR REPLACEMENTS OF AND TO THE WATERWORKS SYSTEM OF THE CITY; SAID BONDS TO BE SPECIAL OBLIGATIONS OF SAID CITY, PAYABLE AS TO BOTH PRINCIPAL AND INTEREST OUT OF THE REVENUES OF THE WATERWORKS SYSTEM 'WHICH SHALL INCLUDE ALL PROP - ERTIES AND EVERYTHING PERTAINING THERETO, THEN aiNED OR THEREAFTER ACQUIRED, AND FURTHER SECURED BY LIEN UPON THE PROPERTIES CONSTITUTING THE SYSTEM AND A LIEN UPON AND GRANT OF A FRA34CHISS TO OPERATE SUCH SYSTEM, IN THE EVENT OF SALE OF SUCH SYSTIMA AFTER DEFAULT IN PAYMENT OF SUCH REVENUE BONDS OR INTEREST THEREON; PROVIDING THAT THE HOLDERS OF SUCH BONDS,, IF AUTHORIZED AND ISSUED, SIY LL NEVER HAVE THE RIGHT TO DEKiuID PAYMENT THEREOF OUT OF ANY FUNDS RAISED OR TO BE RAISED BY TAXATION; PROVIDING SAID BONDS TO BE SECURED BY PLEDGE OF ROUTUES OF SAID WATERWORKS SYSTEM 0 -2- AND LIEN UPON THE PROPERTIES CONSTITUTING THE SAID SYSTEM AND UPON THE FRANCHISE THEREOF OF EQUAL DIGNITY WITH THE PLEDGE AND LIENS SECURING REVENUE BONDS IN THE SUM OF TWO MILLION ONE HUNDRED AND TWENTY THOUSAND DOLLARS ($'2,120,000.00), ISSUED TO PAY OFF A JUDGMENT AGAINST THE CITY HELD BY FRED P. HAYPVARD, ET AL, IN CAUSE NO. 2666 ON THE DOCKET OF THE COURT OF CIVIL APPEALS, 10TH SUPREME JUDICIAL DISTRICT, WACO, TEXAS, TO THE EXTENT AND IN THE MANNER EXPRESSLY PERMITTED BY ORDINANCE WHICH SHALL HAVE BEEN PREVIOUSLY PASSED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS; DESIGNATING THE PLACE FOR HOLDING SUCH ELECTION; NAMING THE OFFICERS THEREFOR; DESCRIBING THE QUALIFICATIONS OF THE VOTERS WHO WILL BE AUTHORIZED TO VOTE AT SUCH ELECTION; DESCRIBING FORM OF NOTICE OF ELECTION, ENACTING PRO- VISIONS INCIDENT AND RELATING TO THE SUBJECT OF THIS ORDINANCE AYD DECLARING AN 'aI:1ERGENCY. WHEREAS, 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; NO'J5, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That an election be held on the 4__ day of , 1947, in said City, at which election the following propositions shall be submitted to the resident qualified electors who own taxable property in said City and who have duly rendered the same for taxation: PROPOSITION °B" "Shall the City Council of the City of Corpus Christi, Texas, be 'authorized to issue revenue bonds for said City in the sum of Two Million Six Hun- dred and Thirty Thousand Dollars ($2,630,000.00), payable serially, within not to exceed twenty (20) years from the date of such bonds, bearing interest not to exceed three (30) 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 making improvements, extensions, repairs or replacements of and to the waterworks system in aforesaid City, to the extent and in the manner expressly permitted by, and in accordance with the limitations contained in the ordinance which shall have been previously passed by the City Council of the City of Corpus Christi, Texas, authorizing the issuance of bonds a- gainst the waterworks system of the City of Corpus Christi in the sum of Two Million One Hundred and Twenty Thousand Dollars ($2,120,000.00), for the payment of the judgment in the ease of Fred P. Hayward, at al, vs. The City of Corpus Christi, et al, No. 2666 on the docket of the Court, of Civil Appeals, 10th Supreme Judicial District, Waco, Texas, and as authorized by the Charter of the City of Corpus Christi and the general laws of the State of Texas and in pursuance of Article 1110a of Vernon's Annotated Civil Statutes of Texas, as 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, said bonds to be payable solely out of and secured by a pledge of the revenues of the waterworks system of the City of Corpus Christi, which shall include all properties and everythin=L pertaining thereto, owned or thereafter acquired; said bonds to be issued for the purpose of improvements, extensions, repairs or replace- ments of and to the said waterworks system to be secured by a pledge of the GS revenues of such system, and lien upon the properties constituting the system and upon the franchise thereof of equal dignity with the pledge and liens securing said bonds issued to pay off the said Hay- ward Judgment under the ordinance hereinabove mentioned ?" 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 the bonds provided to be issued under this ordinance are issued, same shall be issued in accordance with the limitations contained in the ordinance which shall have been previously passed by the City Council of the City of Corpus Christi, providing for the issuance of Two r,Ullion One Hundred and Twenty Thousand Dollars (w'2,120,000.00) for the purpose of paying off a judgment rendered by the Court of Civil Appeals of the 10th Supreme Judicial District, 3raco, Texas, in the case of Fred P. Hayward, et al, vs. The City of Corpus Christi, et al, No. 2666 on the docket of said court and shall be secured by pledge of the revenues of the waterworks system and lien upon the properties constituting such system and upon the franchise of equal dignity with the pledge and lien securing the bonds which shall have been previously issued to pay the aforesaid judgment, as authorized by Article 1110a, Vernonts Annotated Civil Statutes of Texas, passed by the 49th Legislature, Acts of 1945, page 605, Chapter 349, and in accordance with Article 1111 and Articles1113 to 1118, both inclusive, of the Revised Civil Statutes of Texas as amended. SECTION 14. Said election shall be conducted and held by the hereinafter named presiding judges in the hereinafter named precincts of the City of Corpus Christi and at the respective voting boxes herein- after named, to -wits -4- BOND ELECTION PRECINCT NO. 1 T. J. Dineen, Presiding Judge Mrs. Olive Dineen, Assistant Judge H. D. C. Gussett, Clerk Geo. Peters, Clerk BOND ELECTION PRECINCT NO. 2 N. D. Huie, Presiding Judge Miss Dorothy Shely, Assistant Judge Mrs. Marjorie Paul, Clerk Mrs. Josephine Shely, Clerk BOND ELECTION PRECINCT N0. 3 Mrs. G. E. Meisenheimer, Presiding Judge Mrs. Henry MC Gregor, Assistant Judge Mrs. F. E. Peckenpaugh, Clerk Mrs. Harry Wells, Clerk BOND ELECTION PRECINCT NO. 4 Mrs. L. M. Hulbirt, Presiding Judge Mrs. Robt. Pinson, Assistant Judge Mrs. T. E. Sparks, Clerk Mrs. J. H. Beagle, Clerk 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 ELECTIM PRECINCT N0. 6 Mrs. F. M. Thomason, Presiding Judge Mrs. Richard Bluntzer, Assistant Judge Mrs. Harmon McNeill, Clerk Mrs. Florence Hunter, Clerk BOND ELECTION PRECINCT N0. 7 Herbert Wienken, Presiding Judge Mrs. Herbert Wienken, Assistant Judge Mrs. Yf. W. Maxwell, Clerk Mrs. 0. M. Hobbs, Clerk -5— POLLING PLACE Nueces County Courthouse Civic Center, 700 S. Broadway Morgan Street Fire Station, 1401 Morgan Avenue Edward Furman School, Room 1, 1115 Chamberlain Leopard Street Fire Station, 1829 Leopard Street New Fire Station, 3312 Leopard Street Stephen F. Austin School, Morgan Ave. POLLING PLACE BOND ELECTION PRECINCT NO. 8 Sam'''Houst on Schbbl,a363 Nortbtlri,, Mrs. E. H. Andrew, Presiding Judge Mrs. P. A. Tom, Assistant Judge Mrs. Ben E. Shaw, Clerk Mrs. C. B. Ross, Clerk BOND ELECTION PRECINCT NO. 9 Menger School, 2209 S. Alameda Morris E. White, Presiding Judge Mrs. N. A. Easter, Assistant Judge Aiirs. F. A. Liartin, Clerk I7rs. Florence D. Frech, Clerk SECTION 5. That said election shall be held in accordance with the provisions of the Statutes and Laws of the State of Texas, and only the qualified electors residing in said City who own taxable property 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 ofolock a.m. to o'clock p.m. All voters desiring to support the proposition to issue revenue bonds for the purpose of making improvements, extensions, repairs or replacements of and to the waterworks system in the City of Corpus Christi, Texas, shall have written or printed on their ballots the following words: "PROPOSITION "B" FOR THE ISSUANCE OF REVENUE BONDS FOR UTROVING THE YaTERWORKS SYSTEPd." And those opposed to the proposition to issue the said revenue bonds for improving the waterworks system shall have written or printed on their ballots the following words: "PROPOSITION "B" AG -UNST THE ISSUAYCE OF REVaMUE BONDS FOR IPAPROVING THE WATERWORKS SYSTEM." SECTION %. The manner of holding said election shall be as prescribed by Chapter I of 'Title 22 of the Revised Civil Statutes of Texas. -6- 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 CALLER; 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 (14) days prior to the date of said election. SECTION 9. The fact that it is necessary to make needed improve- ments and additions to the waterworks system of the City of Corpus Christi, Texas, in order to give adequate water facilities to the citizens of the City of Corpus Christi and to prevent injury to the health and welfare of such citizens and the fact that it is necessary to vote bonds to secure finances necessary for the above mentioned work 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 intro- duced and that such ordinance or resolution 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 suspended, 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 / day of , A.D. 1947. R City of Corpus Christi, bxas ATTEST: CRY Secretary APPROVED AS TO LEGAL FORMt C =`\ Airb orney C t Assistant Ci Attorney Corpus Christi, Texas _LL, 1947 TO THE CITY COUNCIL Corpus Christi, Texas Gentlemen; It is essential that improvements, extensions, repairs, or replacements be made of and to the waterworks system of the City of Corpus Christi in order to insure proper water facilities for the citizens of the City. Delay in making such improvements to the waterworks system would be detrimental to the health and welfare of the residents of the City of Corpus Christi. It is essential, therefore, that the City vote waterworks revenue bonds in the amount of Two Million Six Hundred and Thirty Thousand Dollars ( $2,630s000 *OO) for waterworks system improve- ment. 1, therefore, request that the City Council pass the proposed ordinance calling an election for the issuance of aforesaid bonds, as an emergency measure. You will please consider this request in connec- tion with the ordinance which has been introduced in the City Council on this subject. Yours v truly, Wesley E. Seale, Mayo City of Corpus Christi, Texas The Charter rule was suspended by the following vote: Wesley E. Seale /// George R. Clark, Jr. John A. Ferris R. R. Henry Joe T. Dawson a- The above ordinance was passed by the following vote: Wesley E. Seale George R. Clark, Jr. Jt� John A. Ferris R. R. Henry Joe T. Dawson V 2152-