HomeMy WebLinkAbout04377 ORD - 10/26/1955AC:10 /26/55
AN ORDINANCE
AUTHORIZING AND DIRECTING THE CITY MANAGER FOR AND ON
BEHALF OF THE CITY OF CORPUS CHRISTI TO ENTER INTO AN
AGREEMENT WITH McCLUNG & KNICKERBOCKER, INVESTMENT
SECURITIES, HOUSTON, TEXAS, WHEREBY SAID FIRM AGREES
TO FURNISH CERTAIN PERSONAL AND PROFESSIONAL SERVICES
IN CONNECTION WITH THE CITY'S BONDS, WARRANTS, AND OTHER
FORMS OF INDEBTEDNESS WHETHER NOW OUTSTANDING OR TO BE
ISSUED, IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF
SAID AGREEMENT, A COPY OF WHICH 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 ENTER INTO AN
AGREEMENT WITH MCCLUNG & KNICKERBOCKER, INVESTMENT SECURITIES, HOUSTON, TEXAS,
WHEREBY SAID FIRM AGREES TO FURNISH CERTAIN PERSONAL AND PROFESSIONAL SERVICES
IN CONNECTION WITH THE CITY'S BONDS, WARRANTS, AND OTHER FORMS OF INDEBTEDNESS
WHETHER NOW OUTSTANDING, OR TO BE ISSUED, IN ACCORDANCE WITH THE TERMS AND
CONDITIONS OF SAID AGREEMENT, A COPY OF WHICH IS ATTACHED HERETO AND MADE A
PART HEREOF.
SECTION 2. THE FACT THAT A FISCAL AGENT IS NECESSARY IN GIVING
ADVICE AND RECOMMENDATIONS TO THE CITY IN CONNECTION WITH THE CITY'S BONDS,
WARRANTS, AND OTHER FORMS OF INDEBTEDNESS 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 INTRO-
DUCTION AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE SEVERAL
MEETINGS OF THE CITY COUNCIL, AND THE MAYOR, DECLARING SUCH EMERGENCY AND
NECESSITY TO £Y,IST, HAVING REQUESTED THE SUSPENSION OF SAID CHARTER RULE
AND THAT THIS ORDINANCE BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION,
AND TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM AND AFTER ITS PASSAGE,
IT IS ACCORDINGLY PASSED AND APPROVED, THIS THE gN DAY OF
1955-
ATTES
C I iY SE C'R ET/-rvY 4
APPROVED AS TO LEGAL FORM
OCTOBER A_� 1955:
CITY ATTORNEY
MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
Y 27�
AC; O /26/55
AGREEMENT
T}N_ STATE OF TEXAS
COUNTY OF NUECES
THIS AGREEMENT ENTERED INTO THIS DAY OF
BE -rWFEN THE CITY OF CORPUS CHRISTI, TEXAS, A MUNICIPAL CORPORATION,
HEREINAFTER CALLED ''CITY', AND MCCLUNG & KNICKERBOCKER, INVESTMENT SECURITIES,
OF HOUSTON, TEXAS, HEREINAFTER CALLED "FISCAL AGENT ",
W IT N k S S E T N y
THE CITY DESIRE$ TO EMPLOY A FISCAL AGENT AND FINANCIAL ADVISOR TO
FU R141SH PERSONAL AND PROFESSIONAL SERVICES IN CONNECTION WITH MUNICIPAL BONDS,,
WARRANTS, NOTES AND OTHER FORMS OF INDEBTEDNESS, WHETHER NOYW OUTSTANOING 04 TO
BE ISSUED. THE CITY MEAEBY APPOINTS MCCLUNG & KNICK£RSOCKER AS ITS FISCAL
AGs.NT AND FINANCIAL ADVISOR TO PERFORM THE SERVICES HEREINAFTER STATED. THE
P13CAL AGENT AGREES:
9. TO MAXE AVAILABLE TO THE CITY AT ALL REASONABLE TIMES, THE
SERVICES OF A QUALIFIED REPRESENTATIVE OF MCCLUNG & KNICKERNOCKER (WHO SHALL
OE SOME EXCCUTIVE OFFIC:£R) FOR THE PURPOSE Of CONFERRING WITH, ADVISING, AND
ASSISTING CITY OFFICIALS, ATTORNEYS, ENGIN£ERS AND OTHER PROPER PERSONS ON
ALL MATTERS PERTAINING TO MUNICIPAL BONDS, OR OTHER FORMS OF INDEBTEDNESS
WHETHER NOW OUTSTANDING OR TO BE ISSUED.
2. TG WORK WITH AND ASSIST A NATIONALLY RECOGNIZED FIRM OF ATTORNEYS
TO BE EMPLOYED AND PAID BY THE CITY IN DRAFTING THE TERMS OF ALL RESOLUTIONS,
COVENANTS, AND ALL OTHER ORDERS AND NOTICES NECESSARY TO THE AUTHORIZATION,
ISSUANCE, SALE AND DELIVERY OF SUCH SECURITIES,
3. TO ADVISE THE CITY OF CURRENT BOND MARKET CONDITIONS, FORTH-
COMING BOND ISSUES AND OTHER GENERAL INFORMATION AND ECONOMIC DATA WHICH MIGHT
NORMALLY BE EXPECTED TO INFLUENCE INTEREST RATES OR BIDDING CONDITIONS TO
THE END THAT THE DATE FOR THE SALE OF THE BONDS CAN BE SET AT A TIME WHICH,
IN THE FISCAL AGENTS OPINION, WILL BE FAVORABLE.
4. TO COUNSEL AND ADVISE WITH AND RECOMMEND TO THE PROPER CITY
OFFICIALS AND EMPLOYEES AS TO MATURITY SCHEDULES, OPTIONAL PROVISIONS AND
OTHER TERMS AND COVENANTS TO BE CONTAINED IN THE BONDS OR OTHER FORMS OF
INDEBTEDNESS IN ORDER TO ARRANGE SUCH MATURITIES, COVENANTS AND PROVISIONS IN
SUCH A MANNER WHICH WILL, IN THE FISCAL AGENT'S OPINION, ENHANCE THE CITY'S
CHANCES OF MARKETING ITS PRESENT AND FUTURE OBLIGATIONS TO THE BEST ADVAN-
TAGE WITH DETAILED STATEMENTS OF THE REASONS FOR THE RECOMMENDATIONS.
5. To PREPARE AND LOOK AFTER THE PUBLISHING IN LEADIMS FINANCIAL
JOURNALS OF OFFICIAL NOTICES OF SALE, CONTAINING FINANCIAL DATA AND OTHER
INFORMATION OF THE NATURE AND TO THE EXTENT ORDINARILY REQUIRED BY MUNICIPAL
SECURITIES DEALERS IN 6SDOING ON BONDS, AND A UNIFORM BIDDING FORM, ALL OF
WHICH THE FISCAL AGENT IB TO FURNISH TOGETHER WITH A LIST OF PROSPECTIVE
BIDDERS. THE FISCAL AGENT AGREES TO RECOMMEND THE CONTENT AND SUPERVISE THE
PREPARATION OF A PROSPECTUS. THE CITY AGREES TO ATTEND TO AND PAT FOR THE
PRINTING AND MAILING OF THESE NOTICE$ OF SALES AND PROSPECTUS.
u. THE FISCAL AGENT AGREES TO RECOMMENC STEPS TO,SE TAKEN IN
ORDER TO PROPERLY PRESENT THE rin ANCtAL AND ECONOMIC SITUATION OF THE CITY
WITH THE NATIONAL FINANCIAL RATING AGENCIES AND TO SUPERVISE, ASSIST AND
ADVISE THE CITY iN THE PREPARATION OF NECESSARY DATA IN ORDER TO OBTAIN
THE BEST POSSIaLE RATING 3T SUCH AGENCIES.
F. TO ASSIST AND RECOMMEND STEPS TO OE TAKEN TO REFUND OR RETIRE
ANY EXISTING BONDS,, TO ALTER OR AMEND ANY EXISTING BOND COVENANTS AND PRO -
VISSONS,; AND TO OFFER ANY OTHER RECOMMENDATION OR COUNSEL REQUESTED BY THE
CITY OR THAT WILL, IN THE FISCAL AGENTS OPINION, O£ BENEFICIAL TO THE CITY
itf ITS FINANCING PROGRAM, WITH DETAILED STATEMENTS OF THE REASONS FOR SUCH
RECOMMENDATIONS.
S. IT SS UNDERSTOOD THAT THE FISCAL AGENT WILL HAVE THE RIGHT TO
SUBMIT A BiD FOR BOND', AND OTHER FORMS OF iNDEBTEDMEII OFFERED FOR SALE
DURING THE TERM OF SAID FISCAL AGENT'S SERVICES, SUBJECT IN EACH CASE TO
THE APPROVAL OF THE CITY COUNCIL PRIOR TO THE ADVERTISEMENT FOR ANY BID.
9. TO ASSIST THE CITY IN THE SELECTION OF AN EXPERIENCED FIRM
DF BoND PRINTERS TO THE END THAT SUCH WORK WILL BE DOME PROPERLY AND AT A
LOW COST TO THE CITY.
As CONSIDERATION FOR THE SERVICES RENDERED BY THE FISCAL AGENT
AND AS REIMBURSEMENT FOR THE EXPENSES WHICH SAID FISCAL AGENT IS TO INCUR,
It IS UNOLhSTOOD AND AGREED THAT THE CITY SHALL PAY AND THE FISCAL AGENT
is TO ACCEPT A CASH FEE TO BE COMPUTED AS FOLLOWS*
SEVENTY -FIVE CENTS 4.75) PER 41,Ow BOND OR OTHER FORM
OF INDEBTEDNESS SOLD AND DELIVERED ON WHICH THE FISCAL
AGENT IS PERMITTED BY THE CITY COUNCIL TO SUNNI' A BID
OF ONE DOLLAR ($I.(11)) PER $1,DOO BDIID OR OTHER FORM
.2.
OF INDEOTEDNE53 SOLO AND DELIVERED ON WHICH SAID FISCAL
A�I£nT I'3 NOT PERMITTED BY THE CITY COUNCIL TO SUBMIT A
DIOS SAID FEE TO BE DUE AND PAYABLE SIMULTANEOUSLY WITH
DELIVERY OF THE BONDS TO THE PURCHASER.
THE CITY AGREES TO REIMBURSE THE FISCAL AaEMT FOR OUT -OF +POCKET
EXPNNSESS INCLUDING TRAVELS HOTEL AND TELEPHONES INCURRED IN CONNECTION WITH
THE PERFORMANCE OF THE ABOVE SERVICES; AND STATEHENT9 FDR SUCH OUT- OF•POCXET
EXPENSES SHALL BE RENDERED MONTHLY AND SHALL SNOW THE NUMGEIR OF DAYS OF
SERVICES PUANISWEO TO THE CITY, AND no KX€rENSE ITEMS INVOLVING MORE THAN
$100.00 SHALL 8E INCURRED WITHOUT THE CITYrS PRIOR APPROVAL,
THIS AGREEMENT SHALL SE BINDING ON GOTH PARTIES. HOWEVER,
EITHER PARTY MAY TERM3NATI. THIS AGREEMENT IMMEDIATELY FOLLOWING THE COMPLCTION.,
OF THE FIRST BOND SALES BY G{ViMG. tITLEEN (15) DAYS NOTICE IN WR /79tIG TO THE
OTHER PARTY.
THIa AGREEMENT SHALL NOT# HOWEVER, BE BINDING 09 THE CITY BEYOND
APRIL. 1, 19575 AND SHOULD THERE BE NO BOND ISSUE SOLD PRIOR To APRIL 1, 1gr)7,
THE CITY SHALL PAY THE FISCAL AGENT FOR HIS SERVICES AT THE RATE OF FIFTY
S)OLLARS ($j�0.00) PER DAY FOR THE - IUMBER OF DAYS OF SERVICE RENDERED aY SAID
FISCAL AGENT 114 PERFORMING THE ASOVE DUTIES, AS SHOWN �Y SAID MONTHLY STATE-
MENTS.
EXECUTED IN DUPLICATE, THIS THE DAY or 1T)5.
THE CITY OF CORPUS CHRISTI, TEXAS
ATTEST: SY
RUSSZLL t. MCCLURES CITY MANAGER
CITY ECRE[AKY
APPROVE) AS TO LEGAL FOW
OCTOBER , 1955;
CITY ATTORNEY
McCLUNG A KNICKERBOCKER
INVESTMENT SECURITIES
HOUSTON, TEXAS
HT
W. E. KNICKERBOCKERS rUTORIZEO E*X—E6rl4TATIVE
CORPUS rVI IST�l TLX S
i ' � 195 5
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 SUSPEN-
SION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLUTION SHALL
BE PASSED FINALLY ON THE DATE IT IS INTRODUCED, AND THAT SUCH OROINANCE-OR
RESOLUTION SHALL BE READ AT THREE MEETINGS OF THE CITY COUNCI!.: 11 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 PRESEI!T MEETING
OF THE CITY COUNCIL.
RESPECTFULLY,
MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE:
FARRELL D. SMITH
MINOR CULLI
W. J. ROBERTS
B. E. BIGLER
MANUEL P. MALDONADO
THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE:
FARRELL D. SMITH
MINOR CULLI lo�„
W. J. ROBERTS
B. E. BIGLERe
MANUEL P. MALDONADO
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