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Home My WebLink About02239 ORD - 03/09/1948AN ORDINANCE NO. 2239 DECIARING THIS AUTHORITY INVESTED IN THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI TO ISSUE BONDS BY VIRTUE OF AN ELECTION HELD IN TEE CITY OF CORPUS CHRISTI, TEXAS, ON TEE 4TH DAY OF OCTOBER, A. D. 1947, FOR THE PURPOSE OF AUTHO- RIZING THE CITY COUNCIL TO ISSUE Two MILLION ONE HUNDRED AND TWENTY THOUSAND ($2,120,000.00) DOLLARS IN REVENUE BONDS PAYABLE OUT OF REVENUES OF THE WATERWORKS SYSTEM, TO BE CANCELLED, BEID FOR NAUGHT, OF NO FORCE AND EFFECT, TERMINATED, REVOKED AND THE SAME TO BE NULL AND VOID AND DECLARING ALL ACTS INCIDENT TO SAID BONDS AFORE- SAID AND ORDINANCES PASSED IN CONNECTION WITH SAID BOND ELECTION AND IN CONNECTION WITH NOTICES THEREOF TO BE REPEALED, REVOKED, TERMINATED AND OF NO FORCE AND EFFECT AND HEREIN DECLARED NULL AND VOID AND ORDAINING THAT NONE OF THE SAID BONDS SHALL BE ISSUED BY VIRTUE OF THE AUTHORITY GRANTED SAID CITY COUNCIL BY THE ELECTION ABOVE' MENTIONED; AND PROVIDING THAT NONE OF SAID BONDS SHALL BE ISSUED BY VIRTUE OF ANY OTHER LEGAL PROCEEDINGS PERTAINING TO SAME; CONTAINING A SEVER.ABILITY CLAUSE AND DECLARING AN EMERGENCY. WHEREAS, heretofore on the 16th day of September, A, D. 1947, the City Council of the City of Corpus Christi, Texas, passed an Ordinance, same being Ordinance No. 2151, calling an election to be held in said City on the 4th day of October, A. D. 1947, on the following proposition=, 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), pay- able serially, within a period 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- ennually, 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, at al, vs. The City of Corpus Christi, at al, and affirmed by the Supreme Court of the State of Texas, as authorised by the Charter of the City of Corpus Christi, Texas, and the general laws of the State of Texas in pursuance of Artiole 1110a of Vernon's Annotated Civil Statutes of Texas, as passed by the 49th Legislature, Act. 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 water- works system 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 secured by a lien upon the properties constituting the waterworks .- system and a line 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 Million 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, a" passed by the 49th Legislature, Acts of 1945, Page 605, chapter 3497" and, FFF -1- WHEREAS. oa the lath day of October, A. D. 1947, "aid election ass held; and, WaREAS, on the 7th day of October, 1947, a Canvass was made of said election as evidenced by Ordinance No. 2161 passed and approved by the City Council an aforesaid date, setting out the results of said elec- tion and by virtue of said ordinance it was ordained that: "1. That the proposition to issue the said bonds was sus- tained by a majority of the resident, qualified electors who own taxable property in said City and who have duly rendered the same for taxation voting at said election and the City Council of the City of Corpus Christi, Texas, is hereby authorized to issue said bonds in accordance with said proposition,- and, VFHEBEaS, no bonds authorised by said election have been issued by the City Council of the City of Corpus Christi; and, WHEMS, a portion of said bonds authorized by said election were offered for sale and no bids were received on same; end, WHEREAS, it is impossible to sell said bonds at an interest rate of three (3%) per cent or less as was authorized in said election; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEX"S SECTION 1. That the preamble to this .Ordinance is hereby - - ordained to be a part of same. SECTION 2. That the authority invested in the City Council by virtue of an election held on the 4th day of October, A. D. 1947, as canvassed and set out in Ordinance No. 2161, passed and approved by the City Council of the City of Corpus Christi on the 7th day of October, A. D. 1947, is hereby declared and ordained to be cancelled, terminated, held for naught, of no force and effect, is a nullity and is to be null and void and that all acts and ordinances in connection with said elec- tion and said authority invested in the Council by virtue of said election are hereby declared to be null and void, of no further force and effect and are hereby repealed and declared a nullity. SECTION 3. It is hereby ordained that the Revenue Bonds for the purpose of payment of a judgment against the City of Corpus Christi -2- in Cause No. 2666 on the docket of the Court of Civil Appeals, Tenth Supreme Judicial District, wsco, Teals, said judgment being in favor of Fred P. Hayward, at al, authorised to be issued by virtue of the election held on October 4. 1947, as aforesaid shall not be issued, and the authority and right to issue same is hereby terminated by this Ordinance. It is further ordained that said bonds as described shall not be issued in accordance with Section 1110., Vernon,. Annotated Civil Statutes of Teals, and in accordance with notice to the public of in- tention to issue said bonds, said notice having been evidenced in Ordinance No. 2161, passed and approved by the City Council on the 7th day of October, A. D. 1947, and that such proceedings are hereby can- celled and terminated and declared to be a nullity. SECTION 1+. It is further ordained that none of the bonds above mentioned nor any portion of them shall ever be issued by the City of Corpus Christi, Texas, but that the proceedings incident to and connected with the calling of the election and the election on such bonds are hereby ordained to be repealed, to hereafter be void and of no further force and effect. SECTION 5. If any section, paragraph, subdivision, clause, phrase or provision of this Ordinance. shall be adjudged invalid or held - - - -- - unconstitutional, the a" shall not affect the validity of this Ordi- nance as a whole or any part or provision thereof other than the part so decided to be invalid or unconstitutional. SECTION 6. The fact that bonds which would have been used to pay the Fred P. Hayward, at al, judgment before mentioned in this ordi- nanoe could not be sold at a price of par and accrued interest at the rate of three (3%) per cent and the fact that it is necessary to pay the judgment held by Fred F. Hayward, at al, against the City of Corpus Christi in order to preserve the financial structure of the City oreates a public emergency and public 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 shall be read at three several meeting. of the City Council, and the Mayor -3- having declared that such public esergenay 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 pseeage, IT IS ACCORDINGLY SO ORDAINED. PASSED AND APPROVED this 7f of Pte, A. D. 1948. YOR City of Corpus Christi, Texas ATTEST: cr rY APPR A3 TO L&OAL FORM: A l� y r erne s e an i Attorney Corpus Christi, Texas �_, 1948 TO THE HERS 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 gist 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 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. Respectfully, 'MAYOR 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 The above ordinance was passed by the ollowing vote: Wesley E. Seale George R. Clark, Jr. John A. Ferris R. R. Henry Joe T. Dawson aa3R