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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. - 1 - 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- - 2 - 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: - 3 - (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 - 4 - 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 - 5 - 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 - 6 - 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. - 7 - 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 =11