HomeMy WebLinkAbout03568 ORD - 10/21/1953AN ORDINANCE NO. 3568
AUTHORIZING AND DIRECTING THE CITY MANAGER FOR AND ON BEHALF
OF THE CITY OF CORPUS CHRISTI TO EXECUTE A CONTRACT WITH
McCALL, PARKHURST AND CR04E COVERING SERVICES IN CONNECTION
WITH THE PROPOSED REVENUE AND TAX BOND ISSUE, ACCORDING TO
THE PROVISIONS AND CONDITIONS CONTAINED IN SAID CONTRACT,
A COPY OF WHICH CONTRACT IS ATTACHED HERETO AND MADE A PART
HEREOF; AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. THAT THE CITY MANAGER BE, AND HE IS HEREBY, AUTHORIZED
AND DIRECTED FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI TO EXECUTE A CON-
TRACT WITH MCCALL, PARKHURST AND CROWECOVERING SERVICES IN CONNECTION WITH THE
PROPOSED REVENUE AND TAX BOND ISSUE, ACCORDING TO THE PROVISIONS AND CONDITIONS
CONTAINED IN SAID CONTRACT, A COPY OF WHICH CONTRACT IS ATTACHED HERETO AND
MADE A PART HEREOF.
SECTION 2. THE FACT THAT THE OPINION OF A RECOGNIZED FIRM OF BOND
ATTORNEYS IS NECESSARY TO MAKE SALABLE ANY BONDS TO BE ISSUED CREATES A PUBLIC
EMERGENCY AND AN IMPERATIVE PUBLIC NECESSITY REQUIRING THE SUSPENSION OF THE
CHARTER RULE THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE
OF ITS INTRODUCTION AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE
SEVERAL MEETINGS OF THE CITY COUNCIL, AND THE MAYOR, HAVING DECLARED SUCH EMER-
GENCY AND NECESSITY TO EXIST, HAVING REQUESTED THE SUSPENSION OF SAID CHARTER
RULE AND THAT THIS ORDINANCE BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION
AND THAT SUCH ORDINANCE TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM AND
AFTER ITS PASSAGE, IT IS ACCORDINGLY PASSED AND APPROVED, THIS THE DAY
OF OCTOBER, 1953-
MAYOR
THE TY OF CORPUS CHRISTI, TEXAS
ATTEST:
� � I
G
CITY SECRtTARY /
APPROVED AS TO_LEGa FORM: G
CITY ATTORNEY
The Honorable City Council
Corpus Christi, Texas
Gentlemen:
J'
Our firm is grateful to the City for its invitation to
indi ate to the City Council the terms under which we vill be able to
serve as bond counsel in the City's current financing anti refinsaciag program.
Soma three wake ago Judge I. M. Singer, the City Attorney, covemanicated
your request and we asked the forbearance of the City uRt11 we could give
soma consideration to the problems with which the City is confronted. Since
that time the writer has bad conferences with Mr. X. S. Allison, Financial
Adviser to the City, members of the City's Staff, and the City Council.
Based on the information thus acquired we are submitting
this letter, indicating the suggested terms of our employment by the City of
Corpus Christi. She letter is being transmitted to you in duplicate originals
and if its terms are satisfactory to the City Council we suggest that a
resolution of acceptance be adopted, and authorizing the Mayor to sign the
acceptance clause shown at the close of the letter. One copy of the accepted
proposal would be retained by the City and the other forwarded to us along
'with a certified copy of the resolution..
LAW OFFICES
MG CALL, PARKHURST S CROWE
1501 MERCANTILE SECURITIES BUILDING
JOHN I
M LARD
DALLAS,TEXAS
I PARKHURST
CARE -ECC —ALL a8BY H M<
PAUL - HORTON`
+oetober 6, 1953
The Honorable City Council
Corpus Christi, Texas
Gentlemen:
J'
Our firm is grateful to the City for its invitation to
indi ate to the City Council the terms under which we vill be able to
serve as bond counsel in the City's current financing anti refinsaciag program.
Soma three wake ago Judge I. M. Singer, the City Attorney, covemanicated
your request and we asked the forbearance of the City uRt11 we could give
soma consideration to the problems with which the City is confronted. Since
that time the writer has bad conferences with Mr. X. S. Allison, Financial
Adviser to the City, members of the City's Staff, and the City Council.
Based on the information thus acquired we are submitting
this letter, indicating the suggested terms of our employment by the City of
Corpus Christi. She letter is being transmitted to you in duplicate originals
and if its terms are satisfactory to the City Council we suggest that a
resolution of acceptance be adopted, and authorizing the Mayor to sign the
acceptance clause shown at the close of the letter. One copy of the accepted
proposal would be retained by the City and the other forwarded to us along
'with a certified copy of the resolution..
iiity Council
Corpus Christi, Texas -2- October 6, 1953
In general, we understand that the City would use our services
as bond counsel covering the entire financing and refinancing program now under
consideration. Without necessarily incorporating all of the elements which might
be involved in our employment, it is believed that the following should be included:
I. Revenue Bonds
1. Cooperation with the City's Staff and its Financial
Adviser in preparing a refunding plan for submission to the holders of the City's
$3,961,000 Waterworks Revenue Bonds (herein called "Outstanding Water Bonds "). The
refunding plan is to include a modification of the Deed of Trust liberalizing the
formula under which additional bonds may be issued, permitting use of Redemption
Fund for purchase of bonds on tender, and authorizing pledge both of water and
sewer rcuecsuss.
2. Contingent on acceptance of the refunding plan by the
holders of at least 75% of the Outstanding Water Bands, preparation of the
Supplemental Deed of Trust, or a new Deed of Trust authorizing the City's Waterworks
and Sewer Refunding and Improvement Revenue Bonds in an amount sufficient to retire
the Outstanding Water Bonds plus improvement bonds for as great amount as would be
justified under the modification of the formula for issuance of additional bands.
It Is estimated that $3,961,000 refunding bonds and a maximum of $11,6$5,000 of
Improvement Bonds could be issued under the proposed refunding plan.
3. In the event that neceasery consent for the modification
Of the Deed of Trust and for the acceptance of the refunding plan can not be obtained,
Preparation of proceedings for issuance of as many Improvement Bonds as may be
issued now under the Deed of Trust under the formula for issuance of additional
bonds estimated at some $4,750,000.00.
City Council
Corpus Christi, Texas -3- October 6, 1953
4. And in the event that necessary consents for the
modification of the Deed of Trust and for acceptance of the refunding plan cannot
be obtained, preparation of proceedings for issuance of as many Sauna Revenue Bonds
as the net revenues of the Systes< will permit under a formula to be approved by
the City Council, estimated to yield some $3,750,00D.00.
5. Preparation of proceedings for as many additional
Gas Revenue Bonds as may be issued now under formula authorising the outstanding
issue of Gas Revenue Bonds, estimated at soma $3,000,000.
6. The City Council has evidenced interest in providing
in the election proceedings for the authorization of bonds in excess of amounts
which can be issued and delivered presently snider available revenues and under
the formulas governing the issuance of additional bonds. It is contemplated that
excess bonds will be provided for such purposes and in such amounts as may be
directed by the City Council.
II. Bonds Supported by Taxation
1, Cooperation with City's Staff and its Financial Adviser
in determining the amount of bonds, for each purpose, to be submitted at the
proposed election. Subject to determination of the ratio of bonded debt to assessed
value of property, the City is considering imsmadiste issuance and sale of bonds
in the approximate amount of $3,000,000. The directing of proceedings necessary
for the authorization and issuance of the tax bonds.
2. Provision in the proceedings for additional bonds
in amounts and for purposes to be specified by the City Council which are not to be
issued and sold immediately, but are to be reserved for issuance and sale in later
years, subject to such limitations as may be prescribed presently.
III. Applicable Both To Revenue and Tax Bonds
1. Preparation of the forms of the election ordinance,
request by Mayor for emergency treatment of ordinance, election notice, and proof
Icorpus Civisti, Tax" ` -e- October 6, 1953
of posting and publication of notice; forms of ordinances or resolutions declaring
the result of the election; forms of ordinances authorizing the issuance of bonds;
such supplements to and such new deeds of trusts as may be incident to issuance of
the revenue bonds; the farms of all supporting lega] material needed for authorization,
issuance and delivery of the bonds.
2. Cooperation with the City Attorney in preparing such
instructions as shell be needed by election officials.
3. Preparation of the transcript of proceedings to be
delivered to the Attorney General, ready for affixing signatwas of the City Officials
and the seal of the City.
4. Preparation of additional copies of the transcript for
the Purchasers of bonds, and one copy for the City Secretary, ready for signatures
and seat.
5. the duty of submitting the records of the several issues
to the Attorney General of Texas for approval.
6. Cooperation with the City's Staff and Financial Adviser
in the preparation of the public offerings to be made of the bonds and bid forms to
be used by persons offering to purchase the bonds, and the delivery proceedings
awarding the 'bonds to purchasers, and evidencing delivery of bonds and the recede,
of the purchase price.
7. Cooperation with the City's Staff and its Financial
Adviser in providing necessary instructions to the Compsay which will print the
bonds, and with the City Officials in the actual execution of the bonds, whether
to be annually executed or through use of a signature machine.
8. Upon proper legal delivery of the bonds of each issue,
to furnish to the purchaser the unqualified approving opinion es to the legality
of such issue, which is acceptable, generally, in the municipal bond markets of
the United States.
}. TO WORM CLOSELY WITH THE CITY ATTORNEY# ~I' APPROVING OPINION IS
REQUIRED AS TO ORDINANCES PASSED BY THE CITY COUNCIL.
IV. COMP6N>fATI2! AND REIMOUROKWIST/! EXPENSES
1. THE CITY WILL REIMBURSE US FOR OUR OUT— '—POCKET EXPENSES IHCURREC
IN HANDLING THIS BUSINESS, INCLUDING SUCH ITEMS AS TRAVEL EXPENSE, TELEGRAPM AND
TELEPHONE TOLLS, AND POINTING AND MIN£OSRAPNINQ EXPENSE, IF ANY. STATEMENTS WILL
SE RERDERED FRCMt TINE TO TIME FOR SUCH EXPEHS£S.
2, THE COMPENSATION WILL DE $1.50 FOR EACM $1,00.00 BOND ACTUALLY SOLD
AND DELIVERED WITHIN TWELVE (la) MONTHS FROM TNi3 DATE, TO SE PAYABLE UPON RENDITION
OF STATEMENT AS THE RESPECTIVE ISSUES ON INSTALLMENTS OF ISSUES ARE SOLD AMP 0CLiVERE0.
TO TN$ EXTENT THAT ADDITIONAL BONO$ ARE TO BE AUTHORISED AT THE POOPOSED ELECTION FOR
INTENDED USE AFTER THE EXPIRATION Of SAID TWELVE (12) MONTH PERIOD THE COMP£NSATNON-
WILL BE 11.1 PER $1,0M.0D BOND, OF wHIcH $.35 PER $1,WO.OD Domo WILL BE PAYABLE
CONCURRENTLY WITH THE SALE AND DELIVERY OF THE RESPECTIVE ISSUES OR INSTALLMENTS OF
ISSUES, WHETHER OR NOT OUR FIRM IS CALLED UPON TO DIRECT THE PROCEEDINGS AMP TO GIVE
THE APPROVING OPINION CONCERNS" SUCH 5014DS. AND IF OUR FIRM IS EMPLOYED TO PERFORM
SUCH REMAINtNa SERVICES WE ARE TO RECEIVE, IN ADDITION TO THE $.35 PER $i3OM-00 30141),
THE ADDITIONAL SUM OF $1.00 PER $1,000.(* BOND.
2A. IN ADDITION TO THE COPIES OF THE TRANSCRIPT TS tit PROVIDED FOR THE
ATTORNEY GENERAL AND FDR THE PURCHASERS of THE SOMOS, WE WILL DELIVER TO THE CITY
FOUR (14) COPIES OF THE TRANSCRIPT FOR THE CITY'S USE.
3. Oust FIRM IS NOT EGUIPPED TO ASSUME RESPONSIBILITY FOR HANDLING LITI-
QATIOB. IF LITIGATION SHOULD SE ENCOUNYEREO IN CONNECTION WITH THE ISSUANCE OF ANY
OF THE SONDS INVOLVED IN THIS AGREEMENT, WE WILL, IF REQUESTED, GIVE CONSULTING
ASSISTANCE TD THE CITY ATTORNEY, WITHOUT CHANGE, IF SUCH ASSISTANCE DOES MOT INVOLVE
TRAVEL. IF TRAVEL ii INVOLVED WE WOULD EXPECT TO NAKE A CHARGE Of 4M.OD PER DAY
FOR THE TIME OF AN ATTORNEY PROM OUR OFFICE. AN EXCEPTION TO OUR KOPWAIDILITY FOR
LITIGATION OCCURS in THE EVENT THAT MANDAMUS PROCEEDINGS ARE REQUIRED IN THE $UPREME
COURT Of TEXAS TO PROCURE THE APPROVAL OF BONDS. WE WOULD
W1Ly WOUIICtl - ,
Carpus Christi, Texas -6- October 6, 1953
assare primary responsibility in such case. While no such litigation is anticipated,
we vouid expect to file a request for a fee of $1,000.00 if necessity for such
litigation is encountered, and for time out of Dallas by one of our partners, a
per diem charge of $200.00.
4. In the event that the election sho4d fail, ve are
willing to cooperate with the City in connection with a second election. But if
the first election fails and the City does not feel that a second elaction should
be called, or if the second elections fails, we would feel justified in billing the
City $1,000.00 in addition to our out -of- pocket expenses.
5. The varies figures shown in this proposal as to
amounts of bonds to be issued are estimates only and *ball be considered as exemplary
rather than controlling. The charge per bond sball be considered as the fixed factor,
irrespective of the amount of bonds authorized or finally issued for the several
purposes.
6. If the City foals that an;y omissions should be covered
or amy changes made, it is suggested that they be inserted and ve will clear them
with a supplemental letter, viz:
City Council
Corpus Christi, Tema -7- octaber 6, 1953
(To be cleared by telephone call to and anwovi.ag replY wise moss Waft11,
Parkhurst is Crape befMa final acceptance).
bespectfully submitted
YLt, acl-e-� .1 ®4, lvi�.�!- c�° �-s �,�, ,.
ACCEPM purauaat to an authariaing resolution adopted
by the City Council on the day of , 1953•
ATMW,
City Searetary
Mayor, eTry of Corpus Christi, Texas
APPROVED AS TO FM:
City Attorney
CORPUS CHRISTI, TEXAS
6J', vfL, 1953
TO THE MEMBERS 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
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 TH15
ORDINANCE FINALLY ON THE DATE IT IS INTRODUCED, OR AT THE PRESENT
MEETING OF THE CITY COUNCIL.
RESPECTFULLY,
MAYOR
CITY OFXORPUS CHRISTI, TEXAS
THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE:
A. A. LICHTENSTEIN a4 I
ELLROY KING
P. C. CALLAWAY
JAMES A. NAISMITH /� Q ,
W. JAMES BRACE C,o
THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE:
A. A. LICHTENSTEIN ct4lj
C,
E LLROY KING /
P. C. CALLAWAY
JAMES A. NAISMITH
W. JAMES BRACE
INTER - OFFICE COMMUNICATION
Dept. LEGAL
TO CITY MANAGER, MAYOR AND CITY COUNCIL c9�
From I. M. S NGER, CITY ATTORNEY Jute_ OCTOBER 21, 1953
SUbjeCtEMP10YMENT OF MCCALL, PARKHURST AND CROWEFOR SERVICES IN CONNECTION
12ggpnqrn RE, AND TAX RoNn IscuF
1. REQUEST IS HEREBY MADE FOR THE EMPLOYMENT OF PRIVATE COUNSEL FOR
THE C'TY OF CORPUS CHRISTI IN ACCORDANCE WITH THE PROPOSAL OF SAID FIRM OF
MCCALL, PARKHURST AND CROWEFOR SERVICES IN CONNECTION WITH THE PROPOSED REVENUE
AND TAX BOND ISSUE. SUCH EMPLOYMENT WILL BE UPON THE TERMS SET FORTH IN SAID
PROPOSAL, SUBJECT TO YOUR APPROVAL AND THE AUTHORIZATION OF THE CONTRACT OF EM-
PLOYMENT BY THE CITY COUNCIL.
2. THE OPINION OF A RECOGNIZED FIRM OF BOND ATTORNEYS IS NECESSARY TO
MAKE SALABLE ANY BONDS TO BE ISSUED AND THE FIRM OF ATTORNEYS HEREBY RECOMMENDED
ARE RECOGNIZED BY BOND BUYERS GENERALLY. THERE ARE AT THE PRESENT TIME NO MEMBERS
OF THE CITY ATTORNEY'S STAFF WHOSE OPINION WILL BE ACCEPTABLE BY THE BOND BUYERS
AND IT IS, THEREFORE, NECESSARY- TO SECURE SUCH OPINION AND IT IS DEEMED ADVISABLE
THAT THE ENTIRE SERVICES IN CONNECTION WITH SUCH BOND ISSUE BE HANDLED BY THE SAME
FIRM OF ATTORNEYS.
RESPECTFULLY SUBMITTED,
I. M. SINGER
CITY ATTORNEY
I MS: AC
THE ABOVE AND FOREGOING REQUEST FOR EMPLOYMENT OF THE FIRM OF MCCALL,
PARKHURST AND CROWEIS HEREBY APPROVED.
RUSSELL E. MCCLURE, C TY MANAGER