HomeMy WebLinkAbout03295 ORD - 07/22/1952TIM STATE or TESAS )
CIXINTY OF NUECES )
ON THIS, the 22nd day of July, 1952, the City Council of the
City of Corpus Christi convened in regular session, with the following members
present, to -irit:
LESLIE WASSERMAN,
14AYCR
JACK DeFORREST )
FRANK E. WILLIAM.SON )
SYDNEY E. IlMMON )
COMMISSIONERS
GEORGE L. LOGRW )
and with
W. B. COLLIER,
CITY MANAGER
C. W. VETTERS,
CITY SECRETARY
also present and with the following absent:
None
constituting a quorum; at which time the following among other business was
transacted:
Mr. Wasserman, Mayor, presented for the consideration of the Council
an.ordibance which was thereupon read by the City Secretary. The Mayor also pre-
sented to the Council a comtainication in writing addressed to it by the Mayor,
pertaining to said proposed ordinance, as follows:
Corpus Christi, Texas,
July 22, 1952
To the City Council
Corpus Christi, Texas
Gentlemen:
Each of you is familiar with the facts surround-
ing the proposal of the Lower Nueces River Water Supply
District to construct a new dam on the Nueces River just
below Mathis Dam for the purpose of impounding water in
much greater quantities than is possible from the faci-
•lities offered by Lake Corpus Christi. The Corpus
Christi water problem, that is, the necessity of insur-
ing a more abundant supply at the earliest possible time
to meet rapidly increasing needs, is also well known
to you. In order that the aforementioned district may
proceed with its plans, which are of such great advan-
tage to the City, it will be necessary for the City to
sell and convey to the District its present storage
facilities at Lake Corpus Christi. These facilities
are now encumbered by a Deed of Trust dated June 1, 19483
given to the Mercantile National Bank at Dallas, Dallas
Texas, Trustee, to secure City of Corpus Christi Water -
Works Revenue Bonds, Series 1948 and 1948 -A, dated June
1, 1948. In order to remove the encumbrance on the afore-
mentioned facilities and thus place the City in a position
to convey to the District the aforesaid properties, the
Deed of Trust must be modified under the applicable pro-
visions thereof. In view of these circumstances, I re-
quest that the City Council finally pass on the day in-
trochiced and as an emergency measure the ordinance now
proposed authorizing modification of the above mentioned
Deed of Trust and for the reasons stated in the emergency
clause thereof.
Yours very truly,
L. Wasserman /s/
Mayor, City of Corpus Christi, Texas.
Commissioner DeForrest made a motion
that the charter provision requiring that no ordinance be finally passed
on the date introduced but must be considered and voted upon at three regular
meetings be suspended for the reasons stated in the written request of the
Mayor and in the emergency clause of the ordinance. The motion was seconded
by Commissioner Lowman and carried by the
following vote:
AYES: Commissioners DeForrest, Yilliamson,
Herndon and Lowman.
NAYS: None.
Commissioner DeForrest made a motion that the
ordinance be finally passed as an emergency measure. The motion was seconded
by Commissioner Ilerndon and carried by the follow-
ing vote:
AYES. Commissioners DeForrest, Williamson,
Herndon and Loo-man.
NAYS: None.
The Mayor
announced that the ordinance had
been finally passed, such ordinance being as follows:
CBDINANCE NUMBES 3295
"All CRDINANCE by the City Council of the City of Corpus Christi,
Texas, determining the necessity and desirability of modify-
ing and amending the Deed of Trust dated June 1, 1948, as
heretofore supplemented3given by the City to the Mercantile
National Bank at Dallas, as Trustee, to secure City of Corpus
Christi Water works Revenue Bonds, Series 1948 and 19118 -A;
authorizing and consenting to the modification and amend-
ment of said Deed of Trust pursuant to the provisions there-
of thereunto enabling; determining upon and adopting the form
and provisions of Supplemental Deed of Trust designed to
accomplish such purpose; enacting provisions incident
and relating to the subject and purpose of this ordinance;
and declaring an emergency.'$
WHEREAS, the City Council has been presented with and has hereto-
fore studied and considered the plans of the Lower Nueces River Water Supply
District for the construction of a new dam on the Nueces River just below
Mathis Dam for the purpose of impounding water in much greater quantities than
is possible with the facilities offered by Lake Corpus Christi; and
WHEMS, upon careful deliberation the City Council has found and
determined and does hereby affirmatively find and determine that the aforesaid
plans and purposes of the Lower Nueces River Water Supply District, which have
been found feasible and practicable to the District from both an engineering
and economical standpoint, offer a satisfactory means whereby the City of
Corpus Christi may obtain a much more abundant source of water supply than
that offered by its present facilities, and all of which will redound to the
definite advantage of the City and to the welfare of its citizens; also that
the enhanced water supply will be made available to the City under a prior
right to such quantities of water as it may require to meet its present and
future needs; and
WHEREAS, the City Council does hereby affirmatively find and
determine that in order to carry out its plans for the construction of the
aforesaid dam on the Nueces River, the District must first acquire from the
City its dam and water storage facilities at Lake Corpus Christi; this by
virtue of the fact that under the District's plans, the waters to be impounded _
by the District's dam will unundate the 1-fathis Dam site and the present Lake
Corpus Christi lake site, as well as additional lands adjacent thereto; and
WHEREAS, the aforesaid Mathis Dam and Lake Corpus Christi formed
thereby constituting the present primary water storage facilities of the
City are encumbered by a Deed of Trust and Supplement to Deed of Trust, both
dated June 1, 1948, given by the City to the Mercantile National Bank at Dallas,
Trustee, to secure payment of City of Corpus Christi Waterworks Revenue Bonds,
Series 1948 and 1948 -A, dated June 1, 1948; said Deed of Trust and Supplement
to Deed of Trust with certificates of authentication being of record in Vol.
285, pages 483 to 558 inclusive, and Vol. 286, pages 409 to 424 inclusive,
respectively, of the Deed of Trust Records of Nueces County, Texas, and also
I
recorded in the Deed of Trust Records of San Fatricio, Jim Wells and Live Oak
Counties, Texas, and
WHUMS the City Council has determined to act in accordance with
the procedure specified in Article SI of the Deed of Trust for the modification
and amendment thereof in order to effect a release therefrom and from the lien
and encumbrance thereby imposed of that portion of the trust estate constituting
the City's primary water storage facilities, and in the accomplishment of this
to seek the consent of the holders of seventy -five percent (75") of the principal
amount of the aforesaid revenue bonds now outstanding, and upon the receipt
thereof to authorize the proper City officials to execute a Supplemental Deed
of Trust in form and content substantially as hereinafter prescribed; said
Supplemental Deed of Trust containing the necessary modifications and amend-
ments and a more particular description of the properties to be released; and
I -JIMMS upon the release of the aforesaid properties it is the
City's purpose and intent to sell and convey same to the District for the sum
of Two ]Million, Seventy -one Thousand, One Hundred Sixty -five and no/100
("x,"2,071,165.00) Dollars, and to deposit said amount in the "Redemption Fund"
created under Article 4 of the original Deed of Trust; and
L•IHIE.REAS, the purposes to be accomplished as aforesaid are consi-
dered to be of such nature as will result in great benefit not only to the City
of Corpus Christi but also to the holders of City of Corpus Christi Waterworks
Revenue Bonds, Series 1948 and 1948 -A, inasmuch as the aforementioned plans
for the augmented water supply ,rill, when accomplished, result in the greatest
possible operating income from the City's 4•Jaterworks system, the net revenues
of which are pledged to the payment of such bonds, and at the same time will
insure a water supply entirely adequate to meet all present and foreseeable
future demands on the system.
NC-1 THEREFORE BE IT ORDAINED BY THE CITY CQINCIL OF THE CITY
OF CORRJS CHRISTI, TMS:
SECTION 1: That all findings and conclusions stated in the
preamble hereof be and same are herein adopted as a part of this ordinance
and as the official judgment of the City Council.
SECTION 2: That upon such findings and conclusions the City
Council deems it necessary and advisable to modify and amend the above mention-
ed Deed of Trust dated June 1, 1948, in accordance with the terms and provisions
of the Supplemental Deed of Trust hereinafter set forth in substantial form.
All the terms, provisions and intendments of the.aforesaid Supplemental 'Deed
of Trust are hereby adopted as a part of this ordinance and as the official
judgment of the City Council.
SECTION 3: That upon the required consent of the bondholders and
for the purpose of removing from the lien and encumbrance of the Deed of Trust
dated June 1, 19483 the properties described in the Supplemental Deed of Trust,
the City Council hereby approves same and authorizes the execution and delivery
thereof at the proper time by the Mayor, City I+fanager and City Secretary for and
on behalf of the City and by the Mercantile National Bank at Dallas, as Trustee,
for the owners and holders of the City of Corpus Christi Waterworks Revenue
Bonds, Series 1948 and 1948 -A, dated June 1, 1948, provided however that simul-
taneously with the execution and delivery of said Supplemental Deed of Trust
and as a condition thereof the following shall be accomplished: (a) The City
shall convey and deliver to the District under appropriate instruments of
conveyance all the water storage facilities released to the City pursuant to
said Supplemental Deed of Trust, the District delivering to the City a cashier's
check in the amount of Tab Million, Seventy -one Thousand, One Hundred Sixty Five
and no /100 ($2,071,165.00) Dollars as Hill consideration therefor and (b) The
City shall deposit said amount with the Trustee in the "Redemption FVnd° created
under Article V of the original Deed of Trust. The bondholders' consents sought
herein shall be conditioned upon the foregoing procedure and in the event it
shall become impossible to consumate same the Supplemental Deed of Trust shall
not be executed and the trust estate shall remain as now provided in the origi-
nal Deed of Trust.
The Supplemental Deed of Trust authorized to be executed and
delivered in accordance with the foregoing shall be in substantially the
following form and language;
SUPPLE MTAL DEED OF MST
(MODIFYING AND AMENDING DEED OF TFdJST AND FIRST SUPPLEMENT THERETO
DATED JUNE 1, 1948, PERTAINING TO CITY OF CORPUS CHRISTI WATERWORKS
REVENUE BONDS SERIFS 1948 AND SERIES 1918 -A)
THE STATE OF TEXAS
COUNTY OF NUECES
THIS SUPPLEMENTAL DEID OF MOST, dated as of the day of
1952, (hereinafter called "Supplement ") by and between the
City of Corpus Christi, a municipal corporation duly organized and existing
under and by virtue of the laws of the State of Texas,(hereinafter called
"City "), acting by and through its Mayor, City Manager and City Secretary,
thereunto duly authorized, by ordinance passed and adopted by the City
Council of said City on the 22nd day of July, 1952, PARTY OF THE FIRST PART,
and Mercantile National Bank at Dallas, Dallas, Texas, a national banking
association, duly organized and existing under and by virtue of the banking laws
of the United States, (hereinafter called "Trustee "), PARTY OF THE SECOND PART
- - WITNESSETH:
WHEREAS, heretofore, to�wit: on the 1st day of June, 1948, the
City and the Trustee duly executed an instrument of trust and a supplement
thereto, the said combined instruments being hereinafter sometimes referred
to as "Deed of Trust ", for the purpose of securing $2,200,000 original
principal amount of "City of Corpus Christi Waterworks Revenue Bonds, Series
1948 ", dated June 1, 1948, and $2,550,000 original principal amount of "City
of Corpus Christi Waterworks Revenue Bonds, Series 1948 -A ", dated June 1,
1948, said Deed of Trust and Supplement to Deed of Trust with certificates
of authentication being recorded in Vol. 285, pages 483 to 550 inclusive,
and Vol. 286, pages 409 to 424 inclusive, respectively, of the Deed of Trust
Records of Nueces County, Texas, and also recorded in the Deed of Trust
Records of San Patricio, Jim Wells and Live Oak Counties, Texas; and
WHEREAS, Section 11.01 of Article XI of the Deed of Trust specifies
the procedure and conditions upon which the same may be modified or amended,
which conditions are referred to also in the recitals appearing in the face
of each of such bonds; and
WHEREAS, The City Council has consented to modification and
amendment of said Deed of Trust as hereinafter provided through the aforesaid
ordinance passed July 22, 1952, and the holders of at least 75% in Principal
amount of the involved revenue bonds now outstanding have also consented in
writing to such modification and amendment; and
WHERFAS, each and all of the provisions specified in the Deed of
Trust as conditions precedent to the modification and amendment thereof have
been fulfilled in strict compliance therewith, and all proofs and showings in
that connection have been furnished to and are on file with said Trustee, in-
eluding a certified copy of the aforesaid ordinance, as evidence of the City
Council's consent and all required evidences of the aforesaid bohdholderst
consent; and
WHEREAS, the City Council has found and does hereby affirmatively
find that all acts and things required to be done precedent to and in the
execution and delivery of this Supplement have been done and performed in
regular and due time, form and manner, as required by said Deed of Trust and
the ordinance of the City Council of the City of Corpus Christi authorizing
same; now, therefore
THIS SUPPLMZNTkY, DEED OF TRUST - FURTHER WITNESSETH:
That in consideration of the premises and of the agreement of the
parties hereto and for the purpose of carrying out their intentions regarding
the modification or amendment of said Deed of Trust, the City bas agreed and
covenanted and does hereby agree and covenant with the Trustee, and the
respective holders from time to time of the outstanding City of Corpus Christi
Waterworks Revenue Bonds, Series 1948 and 1948 -A, as follows.
ARTICLE I
ADDITION OF MW SECTION TO ARTICLE VII ~
SECTION 1.Olt That to Article VII of the aforesaid Deed of Trust
there sball be and there is hereby added a new section as follows.-
"SECTION 7.04: The provisions and restrictions of this Article,
or any other portion of this Deed of Trust, which relate to sale, lease
or other disposition of any part of the system, or which in anywise re-
strict the City's possession or dominion over such properties shall be
deemed to refer and be applicable only -to such properties which at any
time constitute a part of the trust estate hereunder and are not applicable
to such properties which, although once constituting a part of the trust
estate, may be released from the encumbrance of this Deed of Trust
under the provisions pertaining to modification or amendment thereof
contained in Article %I and any portion of said trust estate so released
by appropriate modification or amendment, may be sold, leased or disposed
of under the provisions of the general law thereunto appertaining; pro-
vided, however, that the proceeds of the sale of any property released
from the encumbrance of the Deed of Trust shall be placed in the Redemp-
tion Fund created under Article V of edid Deed of Trust and applied only
to the purposes of said Fund ".
ARTICLE II
RELEASE OF TOST ESTATE FROM THE MORTGAGE AND ENCUMMA.NCE IMPOSED
BY DEED OF TRUST DATED JUNE 1, 1918
SECTION 2.01: That under the aforementioned authority perfected
in it so to do, the Trustee, by these presents, does hereby reconvey, reassign,
retransfer, set over and release to the City of Corpus Christi all and singa-
lar the property of any nature, real, personal or mixed, hereinafter more
particularly identified, which was heretofore included as a part of the trust
estate mortgaged and encumbered under the terms of the Deed of Trust dated
June 1, 1948, given to secure payment of principal and interest of City of
Corpus Christi Waterworks Revenue Bands, Series 1948 and 1948 -Al dated June 1,
1948. The said property being hereby released and reconveyed as aforesaid
shall hereafter be the property of the City with Poll right and privilege in
said City to manage and deal therewith to the same extent and effect as if it
never had been included as a portion of said trust estate under said Deed of
Trust; the said property so released and reconveyIad being the reservoir
(known as Lake Corpus Christi) and the impounding dam thereof situated on
the Nueces River approximately 30 miles Northwest of the City in the Counties
of San Patricia, Jim Wells and Live Oak, Texas, on lands to which the City
owns necessary easements and flowage rights and in certain instances the fee
simple title, all whether cr not specifically described in the conveyances
stated in the Deed of Trust, together with all works, appliances, equipment,
buildings, machinery, rights- of-way and easements in connection with the i.m-
pounding dam to facilitate the use of the reservoir as a water supply for the
City. More particularly, but without limiting the generality of the foregoing,
the properties herein reconveyed and released to the City are all those
set forth under the heading "A. Lake Corpus Christi" of the original Deed
of Trust, it being hereby expressly provided however, that no mineral rights
Of any character pertaining to any of the lands herein released or reconveyed
to the City are included in the above release and reconveyance and arty minerals
in or under or that may be produced from such land shall remain subject to
the lien and encumbrance of the original Deed of Trust.
SECTION 2.o2: That said Deed of Trust is hereby amended and modified
in all respects so as to eliminate therefrom the said property hereinabove
reconveyed and released to the City of Corpus Christi.
ARTICLE III
SECTION 3.01: That in every instance in wbich the "Deed of Trust"
is referred to herein, same shall be considered to mean the original Deed of
Trust, dated June 1, 1948, as amended, given to secure City of Corpus Christi
Waterworks Revenue Bonds, Series 19483 dated June 1, 1948, in the original
authorized principal sum of $2,2001000, and the supplement thereto dated
June 1, 1948, whereby the terms of said Deed of Trust were extended to also
secure the additional City of Corpus Christi Waterworks Revenue Bonds, Series
1948 -A, dated June 1, 1948, in the original authorized principal sum of
$$22550,000.
ARTICLE Iv
RAM?YING AND CONFM40G ALL PROVISIONS OF DEID OF
TRUST EXCEPT AS MODIFIED AND AMENDED HEREIN.
SECTION 1.01: That except as modified and amended herein the said
Deed of Trust dated June 1, 1948, is hereby in all things ratified and con-
firmed, and all other property, real and personal, now owned or hereafter ac-
quired while any of the aforesaid bonds or additional bonds permitted under
Article II of the Deed of Trust are outstanding, for, or used in connection
with the operation of the System, together with all and singular the tenements,
hereditaments and appurtenances belonging or in anywise appertaining to the
aforesaid properties, or any part thereof, and with the reversion or reversions,
remainder or remainders, rents, income and profits of all such properties, and
all of the estate, right, title interest and claim thereto whatsoever at law
as well as in equity shall remain pledged to the payment of the aforesaid Eaonds
as in said Deed of Trust provided.
IN WITNESS ice, the City of Corpus Christi, Texas, acting
by and through its duly appointed governing body, the City Council, has
caused this Supplemental Deed of Trust to be signed in its name by its
Mayor and City Manager, and its corporate seal to be hereunto affixed,
and to be attested by its City Secretary, and said Trustee, Mercantile
National-Bank at Dallas, Dallas, Texas, to evidence its acceptance of the
modifications and amendments hereby granted, has caused its corporate name
and seal to be hereunto affixed, and this Supplemental Deed of Trust to be
signed by Clarence E. Sample, as Trust Officer, and to be countersigned and%=
said seal to be affixed by its cashier or assistant cashier, all as of the
day of , 1952.
CITY OF CORMS CHRISTI, TM
ATTEST:
City Secretary
1 -
ATTEST:
a
Its Assistant Cashier
(Bank Seal) '`
BY
Mayor
City Manager
XFRCANTILE NATIONAL BANS AT DALLAS
Dallas, Texas
BY
Its Trust Officer
SECTION 4: The City Secretary is hereby authorized and instructed
to notify the aforesaid Trustee regarding the desires and intent of this Council
as herein presented and as evidence thereof shall furnish said Trustee a certi-
fied copy of this ordinance proposing execution and delivery of the Supplemental
Deed of Trust. The secretary shall request that said Trustee cause notice of
the proposed execution to be published in a newspaper or journal published
in the City of New York, New York, and in a newspaper of general circulation
published in the City of Corpus Christi, once during each calendar week for
at least four successive calendar weeks, in compliance with the provisions of
Article XI of the Deed of Trust dated June 1, 1948. Such notice shall briefly
set forth the nature of such proposed Supplemental Deed of Trust, shall state
that a copy thereof is on file at the principal office of the Trustee for
inspection by all holders of the aforementioned bands, and shall request that
such bondholders file with the City Council their written instruments consenting
to and approving execution of the proposed Supplemental Deed of Trust by the
City and the Trustee.
SECTION 5: On behalf of the City and as further required by
Section %I Of the Deed of Trust dated June 1, 1948, the Secretary shall also
request that said Trustee mail a substantial copy of the aforesaid notice to
each holder of registered bonds of the above issues, and to any and all other
holders known to such trustee, but the failure to mail each notice in any
instance shall not,affect the efficiency of the consents by the holders of
Sw —ty -five percent (75 %) of such bonds, such mailing of notice being for the
convenience of such registered holders and not a prerequisite to the modification
and amendment of Deed of Trust through the proposed Supplemental Deed of Trust.
SECTION 6: That in every instance where the "Deed of Trust# is
herein referred to, same shall be considered to mean the original Deed of Trust
dated June 1, 1948, given to secure City of Corpus Christi Waterworks Revenue
Bonds, Series 1948, dated June 1, 1948, in the original authorized principal
sum of 82, 200, 000, and the supplement thereto dated June 1, 1948, whereby the
terms of said Deed of Trust were extended to also secure City of Corpus Christi
Waterworks Revenxe Bonds, Series 1948 -A, dated June 1, 1948, in the original
authorized principal sum of ,$2,550,000.
SECTION 7: Any further action whidyi may be required by this Council
to fully accomplish the purposes herein set forth or indicated, is hereby reserved
until such time as it may be determined that the authority to further proceed
has been duly acquired by the City and the Trustee through the proper consent
of the bondholders.
SECTION 8: The fact that the City of Corpus Christi is in urgent
need of the advantages offered by an increased source of water supply which
will be available upon final consummation of the program indicated herein and
to protect the health, life and property of its citizens creates a public
emergency and an imperative public necessity requiring suspension of the
charter rule providing that no ordinance shall be passed finally on the date
it is introduced and that such ordinances shall be considered and voted upon
at three regular meetings of the City Council, and the Mayor having declared
in writing the necessity of the passage hereof as an emergency measure, this
ordinance shall take effect and be in force from and after its passage, and
it is so ordained.
PASSED AND APPROVED, this the oy.w�day of � 1952.
w
Mayor, City of Corpus Christi, s.
TTESTi
Secretary.
The foregoing ordinance is hereby approved as to form and
correctness, this the Alt-'oday of , 1952.
City Attorney, City Co s Christi,
Texas.
(City Seal)
.r
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W B E.III..
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July 22. 1952
To the City Council
Corpus Christi, Texas
Gentlemen:
Nwi�uNe H —don
Funk E Willi. -
dr C.wwlx /x..
Each of you is familiar with the facts surrounding the
proposal of the Lower Nueces River Water Supply District to construct
a new dam on the Nueces River just below Mathis Dam for the purpose
of impounding water in much greater quantities than is possible from
the facilities offered by Lake Corpus Christi. The Corpus Christi
water problem, that is, the necessity of insuring a more abundant
supply at the earliest possible time to meet rapidly increasing needs,
is also well known to you. In order that the aforementioned district
May proceed with its plans, which are of such great advantage to the
City, it will be necessary for the City to sell and convey to the Dis-
trict its present storage facilities at Lake Corpus Christi. These
facilities are now encumbered by a Deed of Trust dated June 1, 1948,
given to the Mercantile National Bank at Dallas, Dallas, Texas, Trustee,
to secure City of Corpus Christi Water -Works Revenue Bonds, Series 1948
and 1948 -A, dated June 1. 1948. In order to remove the encumbrance on
the aforementioned facilities and thus place the City in a position to
convey,to the District the aforesaid properties, the Deed of Trust must
be mbdified under the applicable provisions thereof. In view of these
circumstances, I-request that the City Council finally pass on the day
Introduced and as an emergency measure the ordinance now proposed
authorizing modification of the above mentioned Deed of Trust and for
the reasons stated in the emergency clause thereof.
Yours ver truly,
Leslie Wasserman, Mayor
rity of r r rh—ti Tnvse.
Leslie Wasserman
Jack DeForrest
Sydney E. Herndon
George L. Lowman
[ Ce
Frank E. Williamson
t
The above ordinance was passed by the following vote:
Leslie Wasserman
Jack DeForrest
Sydney E. Herndon
George L. Lowman
Frank E. Williamson
t