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Home My WebLink About02665 ORD - 12/20/1949y. 12/20/49 m �- IR] DECLARING THE RESULTS OF NEGOTIATIONS TO PURCHASE; AND ACCEPTING THE OFFER. TO PUR- CHASE SUBkIITTED BY JOHN NUVMM & COMPANY OF CHICAGO, ILLINOIS; EDDJEMW- POLTA% 00M- PANY OF HOUS70N, TEXAS; FIRST OF TEXAS' CORPORATION OF SAN ANTONIO, TEXAS; DENAR, ROBERTSON & PANCOAST OF SAN ANTONIO, TEXAS'; F. BERT SMITH & COMPANY OF COHPDS CH=I, TEXAS, PRESENTED BY F. BERT SMITH & COMPANY, FISCAL, AGENT OF THE CITY OF CORFLQ, CHR=.J AND ADTHORIZED AGENT OF SAID COMPANIES, FOR THE SALE TO SAID PURCHASERS OF $1,000,000.00 GAS SYSTEM REVENUE BONDS AND $2,000,000.00 GENERAL OBLIGATION BONDS OF THE CITY OF CORPUS CHRISTI; AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A WRITTEN ACCEPTANCE OF SAID PROPOSAL; AND DECIARING AN EM MFJICY ➢BEBE95, The City of Corpus Christi did on April 19, 1949 enter into an agreement with F. Bert Smith and Company appointing F. Bert Smith and Company as Fiscal Agent of the City of Corpus Christi and agreeing to negotiate the sale Of such bonds as might be issued by the City; and MUUMLS, Said such negotiations have resulted in an offer to pur- chase, which is considered to be to the beat interest of the City of Corpus Christi to accept; THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF 17E CITY OF CORPUS CHRISTI: SECTION.]. That the offer of John Nuveen & Company of Chicago, Illinois; Eddleman- Pollok Company of Houston, Texas; First of Texas-- .Corpo- ration of San Antonio, Texas; Dewar, Robertson & Pancoast of San Antonio, Texas; and F. Bert Smith & Company of Corpus Christi, Texas, for said bonds, being an offer to purchase at par plus accrued interest to date of delivery, HE, AND THE SAME. IS HEREBY ACCEPTED, and the City Manager of the City of Corpus Christi, joined by the Mayor of the City of Corpus Christi, is hereby authorized to accept said offer in writing, same being in the form of a letter contract, a copy of which is attached hereto and made a part hereof: 0/ Corpus Christi, Texas December 19, 1949 Honorable kayor and City Commissioners Corpus Christi, Texas Gentlemen: It is our understanding that the City of Corpus Christi, at an election held December 17, 1949, has authorized the issuance of various General Obligation Bonds in vital amounts of :x4,850,000.00, par value and Gas System Revenue Bonds in the amount of $1,000,000.00, all to mature serially not to exceed thirty (30) years and to bear interest not to exceed 5%. It is also under- stood that F. Bert Smith & Company, Corpus Christi, Texas, has a contract with the City to pay all costs of authorization, issuance and sale of the above securities for a fee of 1% of the par value of said Bonds issued and delivered at a price of not less than par and accrued interest. It is considered that it is to the best interest of the City of Corpus Christi to enter into an agreement which will provide a guaranteed market for such Bonds authorized by the voters and which are to be issued during this fiscal Year which is understood to be in series and amounts not to exceed $2,000,000. par value General Obligations and $1,000,000. Gas System Revenue Obligations. Further it is understood that the below indicated guaranteed interest rates are the most favorable financing costs ever received by the City of Corpus Christi for Bonds in comparable amount maturing serially over a twenty (20) or twenty -five (25) year period, and that the provisions included in tha Proposal below and the waiver of the 1% fee and absorption of all costs pro- vide -further advantages which could not otherwise be obtained by the City. It is, therefore, proposed by the undersigned Investment Bankers as follows; Page 1 of 4 Pages 1. REVENUE BONDS: For your $1,000,000.00 of Gas System Revenue the denomination of $1,000. each, maturing and bearing interest at the amounts and rates shown below, payable at Harris Trust & Savings Bank, Chicago, Illinois, and/or The Corpus Christi National Bank, Corpus Christi, Texas, we will pay you par and accrued interest to date of delivery. DATE AMOU14T INTEREST RATE January 15, 1951 m 50,000. 2.5o% January 15, 1952 50,000. 2.50% January 15, 1953 50,000. 2.50% January 15, 1954 50,000. 2.50% January 15, 1955 50,000. 2.75% January 15, 1956 50,000. 2.75% January 15, 1957 50,000. 2.75 January 15, 1958 50,000. 2.75% January 15, 1959 50,000. 3.00% January 15, 1960 50,000. 3.00% January 15, 1961 50,000. 3.00% January 15, 1962 50,000. 3.00% January 15, 1963 50,000. 3.00^ January 15, 1961, 50,000. 3.00% January 15, 1965 50,000. 3.00% January 15, 1966 50,000. 3.00% January 15, 1967 - 50,000. 3.00% January 15, 1968 50,000. 3.00% January 15, 1969 50,000. 3.0017 January 15, 1970 50,000. 3-00t- Such Bonds to be optional on any interest paying date as £ollowsa 105% during the first 4 years of the life of the Bonds, 104% during the next 4 years; 103% during the next 4 years, 102% during the next 4 years, 101% thereafter to final maturity. The Bond Order of said Gas System Revenue Bonds will provide that additional Bonds of equal dignity may be issued, when, as and if authorized, except that the amount of said addi- tional Bonds shall not exceed a total outstanding par value as may be amortized within the limitation of total average annual principal and interest requirements of not to exceed 57.1% of average annual available net income of the Gas System for the past 5 years as certified by an independent audit, i.e. said average net income shall equal 175% of said average annual Bond requirements of outstanding Bonds and Bonds to be issued. Such Bond Order will also provide the usual requirements as to proper records, reserves, and monthly payments to the Bond and Reserve Funds. To make payment as above for the said Bonds in Austin, Texas, or Chicago, Illinois, when delivered to us accompanied by the unqualified approving legal opinion of Vanderwater, Sykes, & Heckler, Bond Attc rneys, New York City, on or before February 15, 1950, or for 30 days thereafter at our option. Page 2 of 4 Pages 2. GENERAL OBLIGATION BONDS. For your 82,000,000.00 of various General Obligation Bonds in the denomination of $1,000. each, maturing and bearing interest at the amounts and rates shown below, payable at Harris Trust & Savings Bank, Chicago, Illinois, and /or The Corpus Christi National Bank,Corpus Christi, Texas, ire will pay you par and accrued interest to date of delivery. DATE AMOUNT INTEREST RATE January 15, 1951 8 10,000. 3.00% January 15, 1952 25,000. 3.00% January 15, 1953 30,000. 3.00% January 15, 1954 35,000. 3.00% January 15, 1955 40,000. 3.00% January 15, 1956 45,000. 3.00% January 15, 1957 45,000. 3.00% January 15, 1958 75,000. 3.00% January 15, 1959 85,000. 3.00% January 15, 1960 90,000. 3,002 January 15, 1961 90,000. 2.75% January 15, 1962 100,000. 2.75% January 15, 1963 100,000. 2.75% January 15, 1964 100,000. 2.75" January 15, 1965 100,000. 3.25% January 15, 1966 100,000. 3.25% January 15, 1967 100,000. 3.25% January l5, 1968 100,000. 3.25% January 15, 1969 100,000. 3.25% January 15, 1970 100,000. 3.25% January 15, 1971 100,000. 3.2 January 15, 1972 100,000. 3.25% January 15, 1973 110,000. 3.25% January 15, 1974 110,000. 3.25% January 15, 1975 110,000. 3.25" To make payment as above for the said Bonds in Austin, Texas, or Chicago, Illinois, when delivered to us, accompanied by the unqualified approving legal opinion of Vanderwater, Sykes, & Heckler, Bond Attorneys, New York City, on or before February 15, 1950, or for 30 days thereafter at our option. 3. We agree under the terms of this proposal to absorb all costs of the Fiscal Agency Contract of F, Bert Smith & Com- pany, dated April 20, 1949, applicable to the Bonds purchased by us under this agreement. 4. We attach hereto and make a part of this agreement a certified check in the amount of ;60,000. payable to the City of Corpus Christi and being 2% of the amount of legally authorijed Bonds to be purchased by us under this contract. This check will be held by you encashed and be returned to us at such time as we have paid for the Bonds under the terms of this contract. In the event we fail or refuse to comply with the terms of this contract, then this check will be cashed by you as full and complete liquidated damages. Page 3 of 4 Pages By acceptance hereof the City Officials of Corpus Christi and their em- ployees agree to promptly take such legal action as may be required for the prompt issuance of the above described Bonds as set out in the terms of this contract. Respectfully submitted, JOHN NJVEEN & COMPANY, CHICAGO, ILLINOIS EDDLEMAN- POLLGK COMPANY, HOUSTON, TEXAS FIRST OF TEXAS CORPORATION, SAN ANTONIO, TEXAS LKNAR, ROBERTSON & PANCOAST, SAN ANTONIO, TEXAS F. BERT SMITH & COMPANY, CORPGB CHRISTI, TEXAS BYe gn- Authori7ed Representative This contract entered into and executed in Corpus Christi, Texas, this, the ,zo day o? December, 1949. CITY CF CGRK! ORR STI, TEXAS ATTEST: CITY SECRETARY APPROVM AS IC LEGAL FORM-. CITY AT OPNE By.- MAYOR By: CITY MAOER Page 4 of 4 Pages SECTION 2. The fact that the contemplated improvements are necessary for the orderly growth and development cF the City of Corpus Christi, Texas, creates a public emergency and an imperative public neaes- city requiring the suspension of the Charter rule providing that no ordinance or resolution shall be passed Finally on the date of its introduction and tbat such srdinanoe or resolution shall be read at three several meetings of the City Council, and the Mayer having declared that such public emergency and imperative public necessity exist and having requested that said Charter rule be suspended, and that this ordinance be passed finally on the date it is introduced and take effect and be in Hill feree and effect From and after its passage, IT IS ACCORDINGLY SO ORDAINED. APPROVED AND PASSED This the Rn/lday o£ December, A.D. 1949. SST: City of Corpus Christi, Texas city sooratar7 APPROVM, AS TO 10,AL,FORM: ivy At oraey Corpus Christi. Texas A,. 26 , 1949 TO THE MWERS OF THE CITY COCRCIL Corpus Christi, Texas Gentleman: For the reasons set forth in the emergency clause of the fore- going Ordinance, a public emergency and imperative necessity exist 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, City of Corpus Christi, Texas The Charter rule was suspended by the following vote: Leslie Wasserman Jack DeForrest Barney Cott Sydney E. Herndon George L. Lowman The above ordinance was passed by the following vote: Leslie Wasserman Jack DeForrest l,�$$ Harney Cott /��j ■� Sydney S. Herndon George L. Lowman c�o &5