HomeMy WebLinkAbout03706 ORD - 03/24/1954THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
On this the 24th day of March, 1954, the City Council
of the City of Corpus Christi, Texas, convened in Regular meeting, with
the following members of said Council present, to -wit:
Ellroy King, Mayor Pro Tem
J. S. Naismith,
W. James Brace, Commissioners,
P. C. Callaway,
T. Ray Kring, City Secretary,
Russell E. McClure, City Manager,
I. M. Singer, City Attorney,
with the following absent: Mayor A. A. Lichtenstein, constituting a quorum,
at which time the following among other business was transacted:
Mr. Brace presented for the consideration of the
Council an ordinance. The ordinance was read by the City Secretary. The
Mayor Pro Tem presented to the Council a communication in writing pertaining
to said proposed ordinance, as follows:
Corpus Christi, Texas,
March 24, 1954.
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 this ordinance finally on the date it is introduced,
or at the present meeting of the City Council.
Respectfully,
/s/ Ellroy King
Mayor Pro Tem
City of Corpus Christi, Texas.
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Commissioner Callaway made a motion that the Charter
provisions prohibiting ordinances from being passed finally on the date
introduced be suspended for the reasons stated in the written request of
the Mayor and stated in the emergency clause of the ordinance. The motion
was seconded by Commissioner Naismith. The motion was carried by a
unanimous vote by the City Council, viz:
AYES: Commissioners Naismith, Callaway and Brace.
NAPES: None.
Commissioner Brace made a motion that the ordinance be
passed finally. The motion was seconded by Commissioner Naismith. The
motion was carried by the following vote:
AYES: Commissioners Naismith, Callaway and Brace.
NAYES: None.
The Mayor Pro Tem requested that the records show that
he voted Aye. This was done.
The Mayor pro Tem announced that the ordinance had been
passed. The ordinance is as follows:
ORDINANCE NO. 3706
AMENDING ORDINANCE NO. 3693 AUTHORIZING THE ISSUANCE
OF CITY OF CORPUS CHRISTI FIRST MORTGAGE WATERWORKS
REVENUE BONDS IN THE AMOUNT OF $7,000.000.00, SO AS TO
MAKE PROVISION FOR THE APPLICATION AND USE OF THE PRO-
CEEDS THEREOF FOR THE SPECIFIC PURPOSE SET FORTH IN
SAID ORDINANCE AND FOR SAFE - GUARDING SUCH FUNDS DURING
THE PERIOD OF THEIR USE, INCLUDING THE ESCROW OF SUCH
FUNDS; AND DECLARING AN EMERGENCY.
WHEREAS, the City Council on February 3, 1954, passed
Ordinance No. 3648, authorizing the issuance of $3,831,000.00 City of Corpus
Christi First Mortgage Waterworks Revenue Refunding Bonds and the execution
and delivery of a Deed of Trust by and between the City and the Mercantile
National Bank at Dallas, Trustee, securing said bonds; and
WHEREAS, said Deed of Trust sets forth in Section 2.05,
Article II the conditions under which additional bonds may be issued to be
on a parity in all respects with said above described Revenue Refunding
Bonds, one of which conditions being that the ordinance authorizing any
such additional bonds shall contain adequate and appropriate provisions
assuring the application and use of the proceeds thereof for the specific
purposes set forth in such ordinance, and for safe- guarding said funds during
the period of their use, including the escrow of construction funds; and
WHEREAS, on the 17th day of March, 1954, the City Council
passed Ordinance No. 3693, authorizing the issuance of $7,000,000.00 of Water-
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works Revenue Bonds, which when issued were to be in all respects on a parity
and of equal dignity with said Revenue Refunding Bonds, however said Ordinance
No. 3693 omitted therefrom provisions pertaining to the conditions described
in the "WHEREAS" clause next above and required by Section 2.05, Article II of
the said Deed of Trust; and
WHEREAS, it is deemed advisable by the City Council that
Ordinance No. 3693 be amended so as to comply with said conditions;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
I. That Ordinance No. 3693 passed by the City Council
March 17, 1954 be amended by adding thereto the following section:
"15 -a. (1) A special fund is hereby created and designat-
ed City of Corpus Christi Waterworks System Construction Fund (herein
sometimes called the "Construction Fund "). There shall be deposited to
the credit of said Construction Fund all moneys received from the sale
of the Bonds, except that any money received by the City by way of
accrued interest on the Bonds shall be deposited in the Interest and
Sinking Fund (Section 5.03 of the Deed of Trust).
(2) The moneys in the Construction Fund shall be held
by the City's Depository hereinafter in this Section 15 -a sometimes
called the "Depository ", in trust to be applied to the payment of the
cost of the improvements and extensions of and to the City's waterworks
system, for which the Bonds were authorized, and pending such application
in accordance with this Section shall be subject to a lien and charge in
favor of the holders of the Bonds and for the further security of such
holders until paid out as herein provided.
(3) All disbursements from the Construction Fund to be
used either to pay obligations under contracts or in connection with
force account projects in making such improvements and extensions shall
be subject to the provisions and restrictions of this Section 15 -a.
(4) Before any payments shall be made from the Construction
Fund the City shall file with the Depository the following:
(a) A requisition signed by the Director of Finance
and approved by the City Manager stating in respect of each pay-
ment to be made:
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(1) The item number of the payment;
(2) The name of the person, firm or corporation
to whom payment is due;
(3) The amount to be paid to such person, firm or
corporation;
(4) In reasonable detail, the purpose for which the
obligation to be paid was incurred.
(b) A certificate signed by the Director of Finance
and approved by the City Manager attached to the requisition,
certifying:
(1) That obligations in the stated amounts have
been incurred by the City and that each item
thereof is a proper charge against the Con-
struction Fund and has not been paid;
(2) That there has not been filed with or served
upon the City notice of any lien, right to
lien, or attachment upon, or claim affecting
the right to receive payment of, any of the
moneys payable to any of the persons, firms
or corporations named in such requisition,
which has not been released or will not be re-
leased simultaneously with the payment of such
obligation, and
(3) That such requisition contains no item repre-
senting payment on account of any retained per-
centages which the City is at the date of such
certificate entitled to retain.
(5) A certificate signed by the Engineer in charge of
construction certifying his approval of said requisition, and further
certifying that each such obligation was properly incurred and that in-
sofar as such obligation was incurred for work, materials, equipment or
supplies, that such work was actually performed, or such materials,
equipment or supplies were actually installed, in or about the con-
struction of improvements and extensions of and to the City's Water-
works System.
It is further provided that the last or final estimate
for improvements and extensions of and to the waterworks System shall
not be paid until same has been approved in writing by the Engineer in
charge of construction and said Engineer shall immediately upon approval
send a certificate to the City Manager and Depository of such approval.
(6) Upon receipt of each requisition and accompanying
certificate the Depository shall transfer from the Construction Fund to
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the credit of a special account in the name of the City to be used
exclusively for making disbursements for such improvements and extensions
an amount equal to the total of the amount to be paid as set forth in
such requisition. Each such obligation against said special account in
the Depository shall be paid by check drawn on such special account and
signed by the City Manager and the Director of Finance of the City of
Corpus Christi, and having the same identifying number as the number
stated in the requisition for moneys on account of such obligation.
Moneys deposited to the credit of such special account in the Depository
shall be deemed to be a part of the Construction Fund until checked out
as in this paragraph provided. If for any reason the City should decide
prior to the payment of any item in a requisition to stop payment of
such item, the City Manager shall give notice of such decision to the
Depository, and thereupon the City shall return the amount of such item
by check drawn on such special account for the credit of the Construction
Fund.
(7) All requisitions and certificates received by the
Depository as required in this Section 15 -a as conditions of the payment
from the Construction Fund shall be retained in the possession of the
Depository subject at all times to the inspection of the City, the
Engineer and the agents and representatives thereof.
(8) At least once in each twelve months until said
Construction Fund shall have been expended the City shall cause an
audit to be made by a certified Public Accountant covering all receipts
and money then on deposit with the Depository or on deposit in the
special account, and the security held therefor, and all disbursements
made pursuant to requisitions filed in accordance with the provisions
of this Section, and copies of the audits so made shall be furnished
to the City Manager, to the Engineer, and to the Trustee.
(9) When the construction of the proposed improvements
and extensions has been completed, evidence of that fact shall be filed
with the Trustee in the form of a certificate stating the date of such
completion, signed by the City Idnager, the Director of Finance, and the
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Engineer, accompanied by an opinion of the City Attorney stating that
the City has acquired or owns title to all of the properties represent-
ed by such improvements and extensions and to all land, property rights,
rights -of -way, franchises, easements and other interests in lands neces-
sary for their operation, free from all liens or encumbrances, except
liens, encumbrances or other defects of title which do not have a
materially adverse effect upon the City's right to use such properties
for the purposes intended, and that there are no uncancelled mechanics',
laborers', contractora', or material-men's liens on such properties or on
file in any public office where the seine should be filed in order to be
valid liens against any part of such properties, and that in the opinion
of the signers, the time within which such liens can be filed has ex-
pired. After the construction program initially commenced shall have
been completed and the fact of such completion has been duly certified
as herein provided the City Council shall have the option of directing
the Depository to remit to the Trustee the remainder of said Construction
Fund to be deposited inIthe Reserve Account of the Interest and Sinking
Fund established under Section 5.03 of the Deed of Trust, or transferring
any balance then remaining to an appropriate waterworks construction
account of the City. But the Trustee shall have no responsibility for
any failure of the City or the Depository to perform their respective
obligations to make such transfer or to perform any other obligations
under this Section.
(10). Moneys in the Construction Fund shall be secured
in the same manner as provided by Section 5.p4 of the Deed of Trust for
moneys in the Interest and Sinking Fund. Moneys in the special account
in the Depository established pursuant to sub - section (6) hereof shall
be secured in the manner prescribed by Section 5.07 of the Deed of Trust
in reference tc moneys to be deposited in the Depository."
2. TbP fact that the contemplated use of the proceeds of
the waterworks revenue bonds are necessary for the orderly development and
growth of the City of Corpus Christi, Texas, creates a public emergency and an
imperative public necessity requiring the suspension of the Charter Rule
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Providing 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 meetings of the City Council and the Mayor having declared that such
public emergency and imperative necessity exist, and having requested that
said Charter Rule be suspended and that this ordinance take effect and be in
full force and effect from and after its passage, it is accordingly so ordain-
ed.
PASSED AND APPROVED March -1-41, 1954.
Mayor.Prb,4-1 m— k_j
'AL ,
ATTEST 4 City�Sec etary
(CITY SEAL)
The foregoing ordinance has been approved as to form and
correctness this day of March, 1954.
City orney.
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CORPUS CHRISTI, TEXAS
19 /
TO THE MEMBERS OF THE CITY COUNCIL
CORPUS CHRISTI, TEXAS
GENTLEMEN:
FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF
THE FORECOING-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,
MAYOR
CITY OF CORPU CH, TEXAS
THE CHARTER RULE WAS SU ENDED DY THE FOLLOWIN6 V F�.'
A-� fit; ""t`TCFfTSTEIN
ELLRo Y'KI 0
- P. C. CALLAWAY
i
JAMES S. NAISMITH
W. JAMES BRACE
THE ABOVE ORDINANCE WAS /PJ.SSED BY THE FOLLOWING V
�- I Oi
ELLROY KING
P. C. CALLAWAY
JAMES S. NAISMITH
W. JAMES BRACE
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