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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