HomeMy WebLinkAbout02234 ORD - 03/05/1948AN ORDINANCE No. 22311
AUTHORIZING AND DIRECTING T_3c CITY MANAGER TO
EXECUTE A CONTRACT ON BEHALF OF T,1E CITY OF
CORPUS CHRISTI 'JITH TiM RANSON- DAVIDSON COMPANY,
INC. PROVIDING TIIAT SAID RANSON- DAVIDSON COMPANY
SHALL ACT AS FISCAL AGENTS FOR TdE CITY I1' TEE
PREPARATION AND SALE OF CERTAIN KATER'WORKS
R.FVENDE BONDS TO PAY A JUDGMIT EIELD BY FRED F.
RAYRARD, -LT AL, AGAINST TIE CITY SAIL' BEIPG NO.
2666 ON THE DOCSET OF THE COURT OF CIVIL UP ALS,
'NACO, TEXAS. SAID BONDS TO HE NOT IN EXCESS OF
WE MILLION TIRO HUNDRED THOUSAND ($2.200,000.00)
DOLLARS; ALSO CERTAIN 174TBKiGRKS REVdNUE IMPBOVE-
L 3lfT BONDS IN THE SUM OF NOT TO EY_CEED TWO MILLION
FIVE MIDRED AND FIFTY THOUSAND (y2,550,000.00)
DOLLARS AI4D CERTAIN TAY. SUPPORTED BONDS IN A SUM
AGGREGATING APPROY.IP:IATELY MM MILLION TNO HUNDRED
AND FIFTY THOUSAND ($3,2$0,000.00) DOLLARS AND
DECLARING AN 011ERG2ECY.
BE IT ORDAINED BY TIE- CITY COUNCIL OF TdE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That the City Manager of the City of Corpus Christi
is hereby authari-d and directed to execute a contract with the Ranson -
Davidson Company, Inc., a copy of such contract is hereby attached and
herein Paade a part of this ordinance.
1 The hem City Ceaoou
�I City of Carps" Christi, Texas
pentlaaens
!J
IN are submitting this proposal in few original counterparts.
Your acceptance .dll be acceeplishad by executing the acceptance clause a"
to all four copies, retaining are and delivering the others to the undersigned.
t.
For cou anienae eertain term as used herein are defined as
follows,
The wdersignsd, The Company, Inc., is s®stimss
herein referred to an the 'Tiscal Agent."
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The City of Corpus Christi is sometimes herein referred to as the
"City."
Certain ;°aterwarks r venue Hands to be issued by the City in the
amount of , ,200,000.00 for the purpose of paying a judgment in the ant
" of $1,833,558.07 (plus 6% interest tram Nay 5, 1945) heretofore rendered
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against the City in favor of Fred P. Hayward at al, No. 2666 in the court o£
Civil Appeals, 19nth Suprams Judicial District of 11axas, are sometimes
herein referred to as the "Judgment Ravens Sandal" an ordinance having been
passed on Fabn,ary 17, 1948, authorising Hawse of Intention to issue said
bonds.
Certain 3atereorks nus rAnds to be issued for the purpose of
making iapro"msats and extensions in an aggregate amount of approdaete]y
$2,3W,000.00 are sometime. herein referred to as °Imprcvwuw t Revenue ficuda.s
The term Movarme Horde" shall ecbrace both Classes of Revenue
Certain bands to be supported by ad valorem taxes, for various
purpo$ea, aggregating approximately $3,25D,000.00, are herein sometimes
referred to as the "Tax Hands."
"Bald Counsel" as used herein shall refer to McCall, Parkhurst &
Crow", Attarnsyro, Dallas, Terri.
Aa ket Couosela for the Btrvecae Boole and for tla Tax Hoed.,
i respoctivaly, a4all. be attorneys shoes opdniona are saespted generally in the
,i menicipal bond m-nrket„ who shall be satisfaatacy both to the City and the
Fiscal Agent.
The Fiscal AVDt, for and in emasideratian of the obligations
asmoed by the City usrier Article 12I hareof, and the paymeats to be made to
it as provided in Section IV hereof, agrees to do and perform the following,
(1) The City having adeised us that it will sap2q Bond Counsel
to direct the proceedings for the iseuwose of and to approve the Tax Bonds
and the Reveaoe Bonds, we agree that we rri.11. reimburse the City for any payment .
to be meals by it ae fees Charged by and the eig maws incurred by Baal Counsel.
(2) is will reimburse the City foe the fees charged by, snd the
expenses incurred by karket Counsel, eamept as to any abligatUms the City
may have at the time of the amcutimn of thin aX"WT ent to %torneye for
aerviaa heretofore rendered and to be rendered ae to any Ul terworks Raverme
Bonds, and sAioh have been rerdsred prior to this tams as to the Tb Bonds,
both of whioh were authorised at an election held on October 4, 1847.
(3) We will furnish the services of our officers and regalAr
emPlgrross and will WPIW the services of gush expert manieipal bond analysts,
as in our opinien -W be needed, all of whoa wI e.oporete with the City,
Bond Counsel and Harimt Counsel to the and tbat material and information help
Aal in setting up the oovenante in the bond ord1narm. and the Deed of Trust,
and to reflset the eCanoertt and fimeraoial vales AM chsreeteristiea of the
R.ersma Bonds, vdll be aeeeobled and pmae ted in such fart that the Bevemse
Benda and the Tax Bonds pill be acceptable and attractive to the market and
Porchamers. And.we will cooperate with the City in preparing and dia3eminatin4
appropriate information to facilitate the eels of ell of the bands and will
supervise the holdin of c®petitive aalas therefm.
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(4) wo NM pey for the printing of the Revaans Haws and the
Tara Bonds and will preenr and pay the expenses of advartiviAg all of &aid
bands and the expanses of doliveriag all at the Raverm Bmids and the Tax
'i. Bonds to the Attorney Oarsral and the Comptroller of Public Aesoonts at
Austin and the espaaso of the necessary, official doaummutg to to obtained
from the Attorney feneral and the Comtrollar.
(5) we 1111 cooperate 11th the City, Bound Counsel and Market
' Cou sal to the end that the Rara,ms Bonds wi11 contain elements of sorority
and moat standards, viz+
(a) Be approved by the Attorney Daneral, Bond Counsel,
Market Couasal, and that the Judgment Revame Wds will be approved for the
Judgment Creditors tw David M. Mood of A&w York, Corneal for the JuM want
'.Creditaral and we agree if meeessary, and if doomed fsasibu, that in the
event the Attorney Gonn%l refuses to approve the Revemu Bowie we will undertake
and bear the expense# of a mandamus action in an attempt to secure his approval!
(b) The Usual and cnston=7 elements of security, including
'those required undo r Article In hereof, as authorised under Chapter 349, Acts
of tha Regular 9eeiian of the 49th Legislature (Varnmha Article 117Aa),
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(6) As OJMWlaz7 of the characteristics of the auagnent ne onag
Bonds, an attach hereto as F,xhihit -All a schedule showing the date, interest
rata, aerial maturity dates, amounts of aerial installments, and the zedaauptim
Option provisions of the bands, hre will cooperate with the City in making
soy desired revision at thews charseterlatlas prior to the giving of the
Notice of Sale of the bands.
(7) AS examiplary of the characteristics of the Improvement
DOMAIN Bends, we attach haretO as Exhibit sBe a rabodale Showing the data,
interest rate, aerial maturity dates, amounts of aerial installments, and the
'.redemption option Provision of the bonds. 'm will cooperate with the City in
;making my desired an of tbea characteristics prior to the giving of
the Notice of %Is of the bonds.
(6) It is eowtomplated that the City Atter,sy and Hand Counsel
will advise the City as to much attk"Imimg election as my be nseassauy for
&qy of the Bevehume BODO end the Tax Bonds. We will cooperate with the City,
the City Attorney, and Boead Cooed in making av&iIabie to than such
financial data a& we may have assembled, rtdeh my be useful in the calling
of such auction.
1
(9) That esponially as to the Tax Bands we will sense to be
assembled such material e* in our opiaien will suable prospective perchasers
to adjudge correctly the vaiae of the bands, incladiug empd+►te infermetion
of the City's financial condition, its indebtedness Bad tax resources and
such economic data as is usually considered rolevaat and helpful lima we
will use our boat efforts to make all of this material aecesaibla and available,
to pr000"Uve pemebasers. do will advertise the bends in the usual msdim,
and cooperate with the City' in supervising the solicitation and reception of
competitive bids for the tax bonds,
(10) That wo sill pay all wgxmsoa incurred by us (and espaases
authorized by us in advance of their being incurred) in the performeaoo of
our obligations under this proparaL Witbent 7 01bg tbo goonraiity of our
nee- liability for sxpmasa not incurred or authorized by us, von *hail have no
"ObU ty for sxPence of official publication of notice for bond elections,
Notices of intention to issue bonds, and of holding elections, nor do an &&so=.
ww Obligation to participate in or to pay MW expenso of say litigation in
shish the City might be involved beaaase of the imlanae or attempt to issue
Say of the bonds, other than is spaoifie}lly not out in this agreement.
(11) We agree that on or before the date act for receiving bid.
on the Judgmaat )tevsaon Bands, ih the principal amount, dated, matariug,
having such options of redemption and having such atber aharsct— Lctics s.
evidenced by Schod -1- "A• in its finally agreed foam (which shall be the
eAwe 8a sobadale see attached to thin oanttact, subject easy to minor
variations); in will file yith the City a coaled bid for such bonds in strict
assml_�.'a•," with the requirements made of other bidders is the official
im►itatlar for bids. our ageeaant to file such a mvaled bid will be subject
to the following conditional
(a) 'that the Judgrmt Bevenwo Bonds are to be approved
sco— dltiaoally by sash of the fwl.l.odags the Attormy q..sl of ;sae,
Bond Cassel, Market Counsel and for the Judgleent Creditors by David N. 'Abod,
Counsel for the Judgment Creditors,
(b) the bid which on will file pursuant to this aubesatian
(ii) shall remain effe*tivs until tae City ,hall hate opened and eanaidcred
such other bids as may be filed pursuant to the iavitatian for bids as to
'.� said bander and until the City shall have had a ,casanable opportunity to
accept our bid or we of the other bids filed. Concurrently with the tiling
of our bid ve will ale deposit with the City a certified or cashier's check
in the aadmt nod in the Yam to be required of other bidders. Such aleck
!
Ii is to be held by the City wader the sum conditions applicable to other
t� bidders, but to to returned to us promptly its the event car bid should amt
be accepted.
(o) Tte Judgment Acura Bond. nn.st be Leaned with elweent:
..,.I of security suletantially as required wider in of thin proposal.
(d) 14at it is eWasaly mtdsratcad that war agroemeut to
submit such sealed bid aha11 be subject to the CLW a ability is offer aid
bonds containing all the elements not forth in this contrast an or before
Nsy 5, 1%8 in the event no reforandam is required pursuant to the ordinance
authorizing Notice of Inteation to isahhe said bonds hsietotore passed on
-. February 17, 1948.
(a) la tho avant such reforeadon referred to Sn (d) Ss
required, than the agreemant to submit such sealed bid shall be subject to
the Cuero ability to offer said bonds with all gwalificatima act forth in
thin contract an or before June 5, 19WS.
(12) We fnrthar agree that on the date net for receiving bids
j on the additional Pavanne Bonds pursuant to the slacticn referred to in
Article III (1) of this proposal in the principal amount, dated, maturing,
having ouch options of redemption and having such other characteristics an
eviaiv=md by Schedule "H" In its finally agreed as form (vdaich shall be the
acme ea schoWs "He attached to this aaontraot, subject only to minor
variations); ve will file with the City a sealed bid for gash bends in striae
cowpUaoce with the requirements made of other bidders, in the official
invitatim for bids. our agreement to file such a sealed bid will be aabjast
to the following conditional
(a) That said additional &avenue Boner as to be approved
uncood tiona.Uy by each of the followings the Attorney (;moral of 1e,m8.
Hoed Coasael and Market ComaeL
(b) The bid Rich we rill film Pursuant to this subsection
(12) shall reania effestiva until the City moll have opened and ocmaidare.
such other bids as may be filed perssmit to the official Invitation for bids
as to said bands, and wyl.0 the City shall byre a reasonable Opportunity to
accept our bid or am of the other bids filed. Can01109eRbly with the filing
of our bid, we -111 oleo deposit with the City a asrtifisd or cashier,a cheek
In the &w ant and In the Sass to be required of other bidders. each check In
to be held lv the City under the am conditions applicable to other bidders,
but to be returned to us promptly in the event our cid should not be accepted.
(c) The beads aunt be issued with elements of security
substantially as required by III of this proposal.
(d) it is wWreclr understood that our went to
submit such eealad bid *ball be Mast to the Cityvs ability to offer said
bonds amtalulas an the slammats act forth in this contract an or lecture
hms 5, 1948, and to further subject to said bonds bring voted without
limitation as to idtereat rate other than the limitation presently preseribed
by the City Chart*r.
in.
For and in consideration of the services thus to be pmrfaemed by
the Fiscal Agent, the ^..ity agreas that the follmdag facts and conditions
V411 axdst ss to ibe Proposed hoods, and to do end perform and to cause to
be dons and Performed the follwdagr
(l) The ibllasing, is the contemplated schedule for aatherisatdon
and issuance of the Proposed Ravenna Bonds sal Tax Bonds
Pursuant to the Duties of Intention to issos the judgment nova as
Hands published by virtu of the medium Passed Psbrtw.7 17, 1%8, ml.pa a
ref endm election shall have been legally required, the City Council. Will
Immediately after the eompddtim of sash notice Pass the ardinmeas authorising
the issuance of the dudamet Romance Bonds. xf a rofarendiw eleotim is
legally required, the City Connell will adopt a resolution or Pass an
oldIAWO ea. r! � the 470etian OR the gngtim of the issaen 0 Of said JW&-
ment heevssne Heads sad an the additional gnsstima at the issum" of the
proposed DWxwvmonat Revenue Hands and the proposed 'Amu Honda. If no
raterendum olectign is legally required, the proposed election will be
restricted to the issuance of the proposed Improvement Revenue Bonds and the
!proposed Tax Bonds. Said ordinances and resolutions Will be in the form
approved by Bond Counsel, Market Counsel and the City Attorney.
'',.. (2) That the ordinances authorising the issuance of the
j3udpeenL Revenue Bonds x111 prescribe the limitations under which the Improve-
ment Revenue Bonds are to be issued, and the ordinance authorising the Improve -
Mont Revenue Bonds will contain provisions in strict compliance with such
+Ilymitationa; that such limitations will be prepared in accordance with the
requirements of Bond Counsel and Market Counsel, designed to provide the
;',maximum security which the City is capable of giving to such bonds in
'Iaccordance with applicable laws, with the provision that no holder of any
.!Revenue Bond shall have the right to demend payment out of money raised
It or to be raised by taxation{
(3) That the Judgment Revenue Bands and the Improvement Revenue
,,Honda shall be ratably secured by a first lien on and pledge of the net
revenues of the waterworks System (including improvements thereof and
additions thereto), by a first mortgage on the physical properties thereof,
land by pledge of an operating franchise in the event of the sale of such
'properties after default;
(4) That the Deed of Trust or, Dead of Indenture securing such
ReverueBonds shall be prepared under direction of Bond Counsel and Market
ICounsel and subject to their approval as to all terms thereof including
provision for Interest and Sinking Fund, Reserve Fund, Extension and Improve -
ment Fund, Contingency Fund, and Redemption Fund.
(5) After payment of or provision for necessary maintenance and
operation of the Waterworks System, the City will endeavor to assure (without
guaranteeing such result) that the remaining revenues will be at least twice
the requirements for principal and interest on Revenue Bonds during each .
year in 'which any of said Revenue Bonds shall be outstanding.
Ke
(1) For services thus to be rendered by the Fiscal Agent under
I1the terms of this contract, the City will make payment to the Fiscal Agent
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II
of as sabot of MWA7 equivalsat to 50M of 1% of the principal emwat of
the bonds h0relmbo" described. Said sealer *hall beeam doe and payable
to the Fiscal. Agent at to following Wags ash sub'"t to the follandsg
. oehdStiArhmi
(a) Ahsn the ranee for thO sale of the Jedgsamt
ii aswmr Dads droll hove been prepared and is aa-dir fee pabllsatiaa, there
i
shell be dam and pggable and shall be paid to the Fiscal Arent an aanrnmt
of mmey squivaisot to 39% of said total its, pralidsd that is the —at
Fiscal %aut has damn and performed all acts anI things required of it
under this proposal„ and City Is hahablm to satimlY all aenditim- pre-xdeat
to isenanes of the judgment :fB"=w Dads as contained in tbim proposal
prior to "M 5, 1%8, then city Shall be chllgated to Per Fiscal Agelitna
uses incurred to that data but rat in &rasa* of 30% of said fse. Said
expenwe having been paid shall be eanaido"d an off -eat to the fee du*
m said Judgment Beside so that in the event the Judgment Bonds an mubeaquantljr
issued and sold tiro City All thou bo obligated to pay Fiscal Agent the
jl diffsmume batmen an ama+mt of monow equivalent to 38$ of said total fee
and the amount previously paid on account of Fiscal +,gent +s exponaaa.
(b) tipiuh delivery to the pmcbaasr or purahassrs of
tbs� Improvement Res' aw Bonds, there stall be duo and payable and shall
be paid to the Fiscal Agent an awant of money "vivalant to 434 of maid
total fool
(o; Upon delivery to the parehasor or purchasers
tjereof of Bald Tax Bonds, or if lase than all Tax Bonds aro sold in the
first iostenae, than span Silo delivery Of the first IMXb& I=&*t of the
Sax nonds, then* when be dam and payable to and shall be paid to the
Fiscal Agent an smut, of mmey equivala t to i" of said total feo.
(a) %a City shall take mash steps as are necessary to have
eaailable and ready for use for the rispsative purposes and at the
respective times vhtt much amounts shill b"Ma dqe and payablo to the
Fiscal Agent, the taps proscribed in this Motion Ii.
dash the City sad tba liaaai .4VA .pre that sash IdU 000parato
aitk the otAox W iho owl thAt All ab11gatims AssremAir sdU be perrtoned
praaptly and in acoozaa s with the apirit and intent of this amt.
ae.p.ar nay wmtttw,
TW I? AN3M-DAVIMM WANT, INC.
b
AM7MD by the City of Corpoa ahrf.stl, this the _ daffy of
1948, pvrneett to a resektdan thwotofere adapted bP the
City CO W011 of the City at Carpus ChrlwU.
City mblvi^er
it
ATWSTt
APPROVED AS TO LEGAL FORM:
Tilloran Sdth, C t ,Attorney
By Assistant City Attomey
82 MAN
abarity Wbeftle for Propswd
0 2,200,000
cif of Coupes Chriwti First Mortgage Aate"Mrks
8ersaim Dwds, 8eri4a A
Did Rate
SY be dated March U. 1468
� maturing serlal]y Marsh 130
1949 840,000
1950 40,000
1951 40,000
1952
1953
19%
1953
1956
1957
1958
1959
1960
1%1
1962
1963
15,000
45,000
50,000
30,000
50,000
55.000
5^3,000
6o,00%
Wpm
65,000
45,000
70,000
1964
1965
1966
1967
196e
1969
1970
1971
1972
1977
1974
1975
1976
1977
1978
470,000
75,000
75,000
80,000
80,000
85,000
90,000
95,000
95,000
100,000
105,000
110,000
115,000
113,000
220,000
Call YVWISiaeas bonds maturing 3/15/59 and rnbwKwat thsrrto are to be
sptlnoal as 3115154 and am lutarest data tharaaftnr, asb2sst to 30 days
oo"" Of ea71 bout given.
Dsspsotfully seined,
W &ANSO- DA920SCS COI AXr, INC.
spi
ACCkm by7 the City of Como Christi this the day of
. 1%dp Psraesnt to a reaalutlM thsratafore adopted by
the city Cmmail of the city of Corpus clwlatl.
City Haager
Ax>aesx
7 or
R t-ity 3dmt -ls floor Propsssd
$ 2,550,000
City of Corpua Christi First ywtV,,
140teooke SEnfsime 8gdai
series g
Bid Rats
90 W dated MmVh 15, 194,
""-14g aerially Nosh 15,
194 843,000 1964 ow,000
1950 50,000 1965 05,000
1931 30,000 1966 901000
1952 50,000 1%7 90,00o
1953 55,000 1968 100,000
1914 $5,000 1969 100,000
1955 55,E 1970 105,000
1956 60,000 1971 105,Mo
1957 60,
j� 000 1912 115,000
1m 65'am 1973 120,000
1954 65,000 1974 320,000
1960 70,000 1975 125,000
1961 7010D0 1976 130100D
1%2 75,000 1977 340,000
1963 75.000 197!1 145,000
cau pro„aslwf„r Bonds nateriffg NW59 and
°pt's . on 3/13/50 esd ncty istsrasa ants tW t +thereto to es
mhos of asju bsiog 8tv" r suDjest to 30 dg7e
�+Po0�17Y sut�eitted,
TM RAN3tli- DAYID9DA CO&AHY, 1NC.
Ryf
Accepted by the City Of Cbrpos Mristi thin the day of
19"S psrSUsnt to a :wa'nt'on thsrstoAll adopld JV
the MY ceun*U of the City of Corp, Christi.
City h?anag�r _ .
AMST:
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SECTION 2. The fact that a judgment held by Fred P. Hayward,
at al, in the sun o^ One ?,flllion Eight Hundred and Thirty -three Thousand
Five Hundred and Fifty -eight Dollars and Seven Cents (11,833,558.07)
against the City of Corpus Christi is now due and the fact that the said
judgment bears interest at the rate of six (6%) per cent per annum from
May 5, 1945, and interest is accruing on said judgment at the present
time and the fact that certain improvements are essential to the water-
works system of the City at this time and the fact that improvements
are needed to the sanitary sewers, the City Streets, the storm sewers,
the airport, and the fact that proper park and playground facilities
should be established in the City and the fact that the said Hanson -
Davidson Company, Inc. are specialists in the preparation and sale of
municipal bonds and the fact that their services are essential and will
be greatly beneficial to the City of Corpus Christi creates a public
emergency and public imperative necessity requiring the suspension
of
the Charter rulo 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, 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 OPBAINED. _ (
PASSED e_D AFFROVED this .7 may of March, A. D. 1948•
Oil
City of Corpus Christi, Texas
ATTEST;
APPR TO F
Assistant C ty Attorney
Corpus Christi, Texas
Larch ,5"—, 1946
TO THE )MME RS OF THE CITY COUNCIL
Corpus Christi, Texas
Gentlemen;
For the reasons set forth in the emergency clause of the
foregoing ordinance, a public emergency and imperative necessity
exist for the suspension of the Charter rule or requirement that no
orainance or resolution shall be passed finally on the date it is
introduced, and that such ordinance or resolution shall be read at
three meetings of the City Council; I, therefore, hereby request that
you suspend said Charter rule or requirement and pass this ordinance
finally on the date it is introduced, or at the present Meeting of the
City Council.
aespeotruliy,
L
City of Corpus Christi, Texas
The Charter rule was suspended by the following vote;
5esley E. seale
George R. Clark, Jr.
John R. Ferris
R. R. henry
Joe T. Dawson
The above ordinance Was passed by the "ri -11ng vote;
'iesley E. Seale
George R. Clark, Jr.
John A. Ferris
R. 3. Henry
Joe T. Dawson