HomeMy WebLinkAbout04413 ORD - 12/14/1955TEE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CERISTI
On this the 14Tii day of December, 1955, the City Counc9
of the City of Corpus Christi, Texas, convened in
SPECIAL meeting,
with the following members of said Council present,
to -wit:
Farrell D. Smith,
Mayor,
Minor Culli,
B. E. Bigler,
Commissioners,
W. J. Roberts, .
M. P. Maldonado,
T. Ray Kring,
City Secretary,
Russell E. McClure,
City Manager,
I. M. Singer,
City Attorney,
with the following absent: Norge
, constituting
a quorum, at which time the following among other business was transacted:
Mss. iICCLUr;E presented for the consideration of
the Council an ordinance. The ordinance was read by
the City Secretary.
The Mayor presented to the Council a communication in writing pertaining to
said proposed ordinance, as follows:
"Corpus Christi, Texas,
December Id, 1955•
TO TIM 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,
Is/ Farrell B. Smith,
Mayor
City of Corpus Christi, Texas
Commissioner SIGLE13 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 RoaF:RTS The motion was carried by
a unanimous vote by the City Council, viz:
AYES: Commissioners Culli, Bigler, Roberts and Maldonado.
NOES: None.
The Mayor requested that the records show that he voted
"Aye ". This was done.
Commissioner HALDONAOO made a motion that the
ordinance be passed finally. The motion was seconded by Commissioner
CULLi The motion was carried by the following vote:
AYES: Commissioners Culli, Bigler, Roberts and Maldonado.
NOES: None.
The Mayor requested that the records show that he voted
"Aye ". This was done.
The Mayor announced that the ordinance had been passed.
The ordinance is as follows:
ORDIINANCE NO. 1- 4 13
BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS, PROVIDING FOR THE ISSUANCE OF CITY OF CORPUS
CHRISTI, TEXAS, SEWER IMPROVEMENT AND EXTENSION REVENUE
BONDS, SERIES 1955, IN THE AGGREGATE AMOUNT OF $335,000,
BEARING INTEREST AT THE RATES HEREINAFTER SPECIFIED,
FOR THE PURPOSE OF CONSTRUCTING IMPROVEMENTS AND EX-
TENSIONS TO THE CITY'S SANITARY SEWER SYSTEM; PRESCRIB-
ING THE FORM OF BOND; PLEDGING THE REVENUES OF THE
CITY'S SANITARY SEWER SYSTEM; PROVIDING THAT THE LIEN
UPON THE REVENUES SECURING SUCH BONDS SHALL BE OF EQUAL
DIGNITY AND ON A PARITY WITH THE PLEDGE SECURING
$1,500,000.00 CITY OF CORPUS CHRISTI, TEXAS, SEWER IM-
PROVEMENT AND EXTENSION REVENUE BONDS, SERIES 195+ AND
$1,165,000.00 CITY OF CORPUS CIIRISTI, TEXAS, SEWER IM-
PROVENENT AND EXTENSION REVENUE BONDS, SERIES 1954 -A;
PROVIDING FOR THE EXPENSE OF OPERATING SAID SYSTEM;
MAKING CERTAIN COVENANTS OF THE CITY IN REFERENCE TO
THE BONDS AND THE BOND FUND FROM WHICH SAID PRINCIPAL
AND INTEREST ARE TO BE PAID; PROVIDING THAT THE HOLDER
OR HOLDERS OF SAID BONDS SHALL NEVER HAVE THE RIGHT TO
DEMAND PAYMENT OF SAID BONDS OUT OF ANY FUNDS RAISED
OR TO BE RAISED BY TAXATION; ORDAINING OTHER MATTERS
RELATING TO THE SUBJECT AND DECLARING AN EMERGENCY.
WHEREAS, on the 24th day of November, 1953, an election
was held in the City of Corpus Christi, Texas, resulting favorably to the
issuance of $3,000,000.00 Sewer Improvement and Extension Revenue Bonds; and
WHEREAS, on Niarch 17, 1954, the City Council of the City
of Corpus Christi, Texas, passed an ordinance directing the issuance of
$1,500,000.00 City of Corpus Christi, Texas, Sewer Improvement and Extension
Revenue Bonds, Series 1954, dated January 15, 1954, (hereinafter called
"Series 1954 Bonds "); and
WHEREAS, said Series 1954 Bonds and said authorizing
ordinance reserved to the City the right to issue the remaining $1,500,000.00
Sewer Improvement and Extension Revenue Bonds voted at the election held on
November 24, 1953, under the conditions set forth in Section 20 of said
authorizing ordinance; and
WHEREAS, on December 15, 1954, the City Council of the
City of Corpus Christi, Texas, passed an ordinance directing the issuance of
$1,1651000.00 City of Corpus Christi, Texas, Sewer Improvement and Extension
Revenue Bonds, Series 1954 -A, dated December 15, 1954, (hereinafter called
"Series 1954 -A Bonds "); and
WHEREAS, the conditions prescribed in Section 20 of said
original authorizing ordinance have been fulfilled and exist so that the
City now has authority under said Section to issue the remaining voted bonds
herein authorized; and
WHEREAS, at this time it is considered proper to sell
the remaining Three Hundred Thirty Five Thousand ($335,000.00) Dollars of
said authorized bonds; and
WHEREAS, it is now necessary and proper that the City
Council proceed with the issuance of such revenue bonds;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
1. That to provide funds for the purpose of improving
and extending the City's Sanitary Sewer System, pursuant to the Constitution
and
Statutes
of the State of Texas, including particularly Articles 1111 to
1118, both inclusive, of 1925 Revised Civil Statutes
of Texas, as amended,
and
the
Charter of said City, there shall be
issued
City of Corpus Christi,
Texas,
Sewer
Improvement and Extension Revenue Bonds,
Series 1955, aggre-
gating
Three
Hundred Thirty Five Thousand ($335,000.00)
Dollars, numbered
from One (1)
to Three Hundred Thirty Five (335),
both
inclusive, of the de-
nomination of One Thousand ($1,000.00) Dollars each.
2. That said bonds shall
be dated
December 15, 1955,
and
shall bear interest at the rates as follows:
Bonds Nos. 1 to 300
_, both incl., ' A % per annum
Bonds Nos. � I to
,
7 2 % per annumi
Bonds Nos. to 1tij_,
"
7 /o per annum,
3f
Bonds Nos. _1�Y to
per annum,
payable
July
15, 1956, and semi- annually thereafter
on January 15th and July
15th of each
year; principal and interest of
said bonds shall be payable in
lawful
money
of the United States upon presentation
and surrender of bond or
proper
coupon at the Harris Trust and Savings
Bank,
Chicago, Illinois, or, at
the
option of the holder, at the Corpus Christi National
Bank, Corpus Christi,
Texas,
without exchange or collection charges
to the
owner or holder thereof,
and
they shall
mature as follows:
BONDS NUMBERS MATURITY DATES
AMOUNTS
1
to
5, both incl., January 15,
1957,
$ 5,000.00
6
to
10,
January 15,
1958,
5,000.00
11
to
15,
" January 15,
1959,
5,000.00
16
to
20,
January 15,
1960,
5,000.00
21
to
30,
" January 15,
1961,
10,000.00
31
to
40,
" January 15,
1962,
10,000.00
41
to
50,
" January 15,
1963,
10,000.00
51
to
60,
January 15,
1964,
10,000.00
61
to
70,
" January 15,
1965,
10,000.00
71
to
80,
January 15,
1966,
10,000.00
81
to
90,
January 15,
1967,
10,000.00
91
to
100,
" " January 15,
1968,
10,000.00
101
to
110,
January 15,
1969,
10,000.00
111
to
120,
January 15,
1970,
10,000.00
121
to
135,
January 15,
19712
15,000.00
1-3-6
to
150,
January 15,
1972,
15,000.00
151
to
165,
" January 15,
1973,
15,000.00
166
to
180,
" January 15,
1974,
15,000.00
181
to
195,
" " January 15,
1975,
15,000.00
196
to
210,
January 15,
19762
15,000.00
211
to
225,
" January 15,
1977,
15,000.00
226
to
240,
" January 15,
1978,
15,000.00
241
to
255,
" January 15,
1979,
15,000.00
256
to
270,
" " January 15,
1980,
15,000.00
271
to
285,
January 15,
1981,
15,000.00
286
to
300,
" January 15,
1982,
15,000.00
301
to
315,
" " January 15,
1983,
15,000.00
316
to
335,
" January 15,
1984,
20,000.00
3. In Bonds Numbers One Hundred Thirty Six (1306) to
Three Hundred Thirty Five (335), both inclusive, the City shall reserve the
option of calling each such bond for redemption prior to maturity on the
15th day of January, 1971, and thereafter on any interest payment date, at
a price of par and accrued interest to date so fixed for redemption. Notice
of such redemption is to be published in a financial publication in the City
of New York, New York, at least once, not less than thirty days before the
date fixed for prior payment and thirty days' notice in writing is to be
given to the places of payment before the date so fixed for prior payment.
At the time said call is made, funds shall be made available for such purpose
in an amount sufficient to pay the bonds called and accrued interest thereon.
If, upon the happening of the above conditions said bonds are not presented
for payment, they shall not thereafter bear interest.
4. That each of said bonds and interest coupons shall
be executed by the imprinted facsimile signature of the Mayor and counter-
signed by the imprinted facsimile signature of the City Secretary, and the
corporate seal of the City of Corpus Christi, Texas, shall be impressed
upon each of them. Such facsimile signatures shall have the same effect
as manual signatures.
5. That said bonds shall constitute special obligations
of said City of Corpus Christi and each of said bonds shall contain the pro-
vision that the holder thereof shall never have the right to demand payment of
said obligation out of funds raised or to be raised by taxation.
6. The form of said bonds shall be substantially as
follows:
NO. $1,000.00
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
SEWER IMPROVEMENT AND EXTENSION REVENUE BOND
SERIES 1955
The City of Corpus Christi, in the County of Nueces, State
of Texas, a municipal corporation duly incorporated under the laws of the
State of Texas, for value received, hereby acknowledges itself indebted to and
promises to pay to the bearer hereof on the 15th day of January, 19_, the
I sum of
ONE THOUSAND DOLLARS
in lawful money of the United States of America, with interest thereon from
date hereof at the rate of ( *o) per cent per annum, payable July 15, 1956 „
and semi - annually thereafter on January 15th and July 15th of each year, unt
the principal sum shall be paid. Interest maturing on and prior to the
maturity of this bond is payable in lawful money of the United States of
America, upon presentation and surrender of proper coupons as they severally
become due, both principal and interest being payable at the Harris Trust and
Savings Bank, Chicago, Illinois, or, at the option of the holder, at the
Corpus Christi National Bank, Corpus Christi, Texas, without exchange or
collection charges to the owner or holder hereof.
This bond is one of a series of bonds of like tenor and
effect, except as to number, interest rate, maturity and right of prior re-
demption, numbered One (1) to Three Hundred Thirty Five (335), both inclusive,
of the denomination of One Thousand ($1,000.00) Dollars each, aggregating
Three Hundred Thirty Five Thousand ($335,000.00) Dollars, (being part of a
total authorized issue of Three Million (3,000,000.00) Dollars), issued by
the City of Corpus Christi, Texas, for the purpose of improving and extending
the City's Sanitary Sewer System, in accordance with the Constitution and laws
of the State of Texas and the Charter of said City, and pursuant to an or-
dinance passed by the City Council, duly recorded in the minutes of said
City Council, reference to which ordinance is hereby made for a description
of the funds charged with and pledged to the payment of the interest on and
the principal of the bonds, the nature and extent of the security thereof,
and a statement of all of the rights, duties and obligations of the City and
the rights of the holders of the bonds, to all the provisions and terms of
which ordinance the holder hereof by the acceptance of this bond assents.
The date of this bond in conformity with the ordinance
above mentioned is December 15, 1955•
* *(The City reserves the option of calling this bond for
redemption prior to maturity on any interest payment date on and after January
15, 1971, at par and accrued interest, provided thirty days' notice of such
call is given in writing to the places of payment and provided said notice
is published in a financial publication published in the City of New York,
New York. Said notice shall appear in said publication in at least one
issue, the date of said issue being not less than thirty days prior to the
date so fixed for redemption. If such bond is called for redemption in said
manner and if funds sufficient to pay the redemption price shall have been
duly placed in the bank of payment by the date fixed for redemption, it shall
not thereafter bear interest.)
The City reserves the right to issue additional parity
revenue bonds for sewer improvements and extensions, under the conditions
stated in the ordinance authorizing this bond, said bonds to be payable from
the same source as are the Bonds of this issue, the Series 1954 -A Bonds and
the Series 1954 Bonds, secured by the same revenues, and shall be on a
parity with this issue of bonds, the Series 1954 -A Bonds and the Series
1954 Bonds.
Each successive holder of this bond and each successive
holder of each of the coupons hereto attached, is conclusively presumed to for
go and renounce his equities in favor of subsequent holders for value without
notice, and to agree that this bond and each of the coupons hereto attached,
may be negotiated by delivery by any person having possession hereof, howso-
ever such possession may have been acquired, and that any holder who shall
have taken this bond or any of the coupons from any person for value and with-
out notice, thereby has acquired absolute title thereto, free from any de-
fenses enforceable against any prior holder and free from all equities and
claims of ownershipof any such prior holder. Neither the City of Corpus
Christi nor its officials nor the paying agent hereinabove named shall be
affected by any notice to the contrary.
In the event the City later exercises the right to combine
the operations of its waterworks and sanitary sewer systems reserved to it in
Section 31 of the ordinance authorizing the Series 1954 Bonds, the bonds of
this issue, the Series 1954 -A Bonds and the Series 1954 Bonds, together with
any additional sewer system revenue bonds subsequently issued and any revenue
bonds theretofore or thereafter issued for waterworks purposes, to the extent
and in the manner permitted by law at such time, will be payable from the
revenues of the combined systems, including all additions, extensions and
improvements thereafter made to said combined systems, and, if so authorized
by law and prescribed by the City, may be further secured by a mortgage on th
combined systems.
This bond and the series of which it is a part, together
with City of Corpus Christi, Texas, Sewer Improvement and Extension Revenue
Bonds, Series 1954 -A, dated Decem1ber 15, 1954, issued in the amount of
$1,165,000.00, and City of Corpus Christi, Texas, Sewer Improvement and
Extension Revenue Bonds, Series 1954, dated January 15, 1954, issued in the
amount of $$1,500,000.00, constitute special obligations of the City of Corpus
Christi, Texas, payable both as to principal and interest from and secured by
a first lien on and pledge of the revenues of the Sewer System, after de-
duction of reasonable operation and maintenance expenses, including all
salaries, labor, materials, repairs and extensions necessary to render effi-
cient service. The holder hereof shall never have the right to demand payment
of this obligation out of funds raised or to be raised by taxation.
AIVD IT IS IMMY CERTIFIED AND RECITED that the issuance
of this bond and the series of which it is a part, is duly authorized by law
and by a majority of the resident, qualified electors owning taxable property
in said City, and who had duly rendered the same for taxation, voting at an
election held for that purpose within said City on the 24th day of November,
1953; that all acts, conditions and things required to exist precedent to and
in the issuance of this bond to render the same lawful and valid have been
properly done, have happened and been performed in regular and due time, form
and manner as required by the Constitution and laws of the State of Texas, and
the ordinance hereinabove mentioned, and that this series of revenue bonds doe
not exceed any constitutional or statutory limitations, and that provision has
been made for the payment of the principal and interest of this bond and the
series of which it is a part by irrevocably pledging to the payment thereof
the net revenues of said sewer system of said City of Corpus Christi.
IN TESTIMONY WHEREOF, the City of Corpus Christi, Texas,
by its City Council has caused the seal of said City to be impressed hereon
and this bond and the annexed coupons to be executed by the facsimile signa-
ture of the Mayor and countersigned by the facsimile signature of the City
Secretary.
Mayor, City of Corpus Christi, Texas.
COUNTERSIGNED:
City Secretary, City of Corpus Christi,
Texas.
*-(Bonds Nos. 1 to 30 , both incl., 14 ro per annum;
Bonds Nos. I to _ 1i5 , " 1 2 % per annum;
Bonds Nos. 13o to 33 , " 1 4 per annum.)
* #(This paragraph should be omitted from Bonds Nos. 1 to 135, both incl.)
7. The form of said coupons shall be substantially as
follows:
NO.
ON THE 15TH DAY OF
19
The City of Corpus Christi, Texas, out of revenues
specified in the bond to which this coupon is attached, will pay to bearer
*(unless the bond to which this coupon is attached shall have been called
for previous redemption as therein provided and provision for the redemption
thereof made), at the Harris Trust and Savings Bank, Chicago, Illinois, or, at
the option of the holder, at the Corpus Christi National Bank, Corpus Christi,
Texas, without exchange or collection charges to the owner or holder hereof,
the sum of ($ ) Dollars
in lawful money of the United States of America, said sum being interest due
that day on "City of Corpus Christi, Texas, Sewer Improvement and Extension
Revenue Bond, Series 1955 ". bearing the number hereinafter specified, dated
December 15, 1955• The holder hereof shall never have the right to demand
payment of this obligation out of funds raised or to be raised by taxation.
Bond No.
City Secretary Mayor.
*(This parenthetical expression should be printed only in coupons maturing
July 15, 1971, and subsequent).
8. The form of Comptroller's certificate, which shall be
printed on the back of each bond shall be substantially as follows:
OFFICE OF COMPTROLLER
STATE OF TEXAS
I HEREBY CERTIFY that there is on file and of record in
my office a certificate of the Attorney General of the State of Texas, to the
effect that this bond has been examined by him as required by law, and that h
finds that it has been issued in conformity with the Constitution and laws
of the State of Texas, and the Charter of said City, and that it is a valid
and binding special obligation of said City of Corpus Christi, Texas, payable
from the revenues pledged to its payment byand in the ordinance authorizing
same, and said bond has this day been registered by me.
WITNESS 1,4Y HAND and seal of office at Austin, Texas,
Comptroller of Public Accounts of the
State of Texas.
(SEAL)
9. That after the bonds have been executed by the City
Officials as hereinabove provided, they shall be presented to the Attorney
General of the State of Texas for examination and approval. After the bonds
have been approved by the Attorney General, they shall be registered by the
Comptroller of Public Accounts of the State of Texas.
10. All of the covenants, provisions, powers and con-
ditions contained in the ordinance passed on March 17, 1954, authorizing the
Series 1954 Bonds, securing such bonds, shall secure said Series 1955 Bonds,
and apply to and govern the rights of the holders thereof, as fully and
effectually and to the same extent and in the same manner as if all of said
covenants, provisions, powers and conditions have been here fully set forth.
The said Series 1954 Bonds, the Series 1954 -A Bonds and
the Series 1955 Bonds shall be on a parity in all respects so that no bond
of either series shall be entitled to any preference or priority over any
bond of the other series.
11. In addition to the amount required by said ordinance
of March 17, 1954, to be deposited into the Bond Fund, the City shall pay int
said Fund during each year an amount equal to 100 per centum of the amount
required to meet the interest and principal payments of this issue of bonds
falling due on or before the next maturity date of the bonds. In addition to
such payment, the City shall pay into the Bond Fund from the System Fund in
each year 20 per centum of the above required amount until such time as there
is in the Bond Fund an amount sufficient to meet the interest and principal
payments of this issue of bonds falling due on or before the next maturity
date of the bonds and plus an amount equal to the maximum principal and
interest payment becoming due on this issue in any future year. The amount
thus required to be paid into the Bond Fund in each year shall be paid in
substantially equal monthly payments.
12. In addition to the deposits required by Section 11
of this ordinance, the City shall continue to pay into the Operating Reserve
Fund, created by said ordinance of March 17, 19541 on or before the 15th day
of each month, after the required payments have been made into the Bond Fund
(including the Reserve Account), out of money remaining in the System Fund
such amounts as will in approximately equal monthly installments accumulate
in said Operating Reserve Fund within four years a sum at least equal to one -
half (1/2) of the total operating and maintenance expenses for the next pre-
ceding fiscal -year.
13. Without limiting the generality of the provisions
of Section 10 above, the City specifically covenants, as follows:
A. RATES: The City shall fix rates and collect charges
which will provide revenues sufficient at all times:
(1) to pay all operation, maintenance, depreciation, re-
placement and betterment of the system;
(2) To establish and maintain Bond Fund, including the
Reserve Account;
(3) To establish and maintain the Operating Reserve Fund,
(4) To pay all outstanding indebtedness against the system
as and when the same becomes due and to provide also that no free service steal .
be allowed.
B. APPLICATION OF REVENUES: All revenues derived from
the operation of the System shall be deposited into the System Fund. The
System Fund shall be administered as follows:
1. MAINTENANCE AND OPERATION: From the moneys in the
System Fund the City shall pay the expense of operation and maintenance of
the system, including salaries, labor, materials, and such repairs and ex-
tensions as are necessary to keep the system in operation and render adequate
service.
2. BOND FUND: After the payment of expenses as provided
in the preceding paragraph, the City shall,pay from the moneys in the System
Fund into the Bond Fund an amount equal to one hundred (100`p') per centum of
the amount required to meet the interest and principal payments falling due
on or before thenext maturity date of the bonds. In addition to such payments
the City shall pay into the Reserve Account of the Bond Fund from the System
Fund in each year an additional sum equal to twenty (20%) per centum of the
above required principal and interest payments until such time as there is in
the Reserve Account an amount equal to the maximum principal and interest pay-
ment becoming due in any future year. The moneys in the Bond Fund and Reserve
Account shall be used solely for the purpose of paying interest and premiums
on, and principal of, the bonds until all bonds have been retired.
3. OPERATING RESERVE FUND: On or before the 15th day of
each month after the required payments have been made into the Bond Fund and
the Reserve Account, there shall be deposited in the Operating Reserve Fund
out of the funds remaining in the System Fund such payments as will in approxi
mately equal monthly installments accumulate in the Operating Reserve Fund
within four years, a sum at least equal to one -half (1/2) of the total operat-
ing and maintenance expenses for the previous fiscal year. The deposites into
this fund shall be subordinate to those required to be made into the Bond Fund
and the Reserve Account.
4. SURPLUS. Any funds remaining in the System Fund after
the payments have been made into the Bond Fund, the Reserve Account and the
Operating Reserve Fund, may be used for the purchase of bonds at not exceeding
the principal amount thereof, exclusive of accrued interest, or to redeem bond
in accordance with the option provision set out in the bonds, or such surplus
may be used for any other purpose permitted by law.
C. ADDIT40NAL PARITY BONDS: The City covenants and
agrees that it will not issue any additional bonds on a parity with these
bonds payable from or secured by a pledge of the revenues of the Sewer System
except upon the following terms and conditions:
1. That the net revenues of the system for the twelve
months period next preceding the date of the bonds (as certified by a Certi-
fied Public Accountant) were equal to at least one and three - fourths (1- 3/4ths
times the highest total amount of principal and interest to become due in any
future twelve month period on all obligations then outstanding and then to be
issued.
2. That the City is not in default as to any covenant,
condition or obligation contained in the Bond Ordinance.
3. That the City is not in default in the payment of
principal or interest on any of these bonds and there is no deficiency in any
of its Reserve Funds for these bonds.
4. That the proposed Additional Parity Bonds shall have
been authorized by a vote of the qualified electors.
5. That such Additional Parity Bonds are made to mature
on January 15th of each year and that interest is made payable on January 15th
and July 15th of each year.
6. That a certificate by a qualified professional engineer
shall show that estimated future net earnings will be not less than one and
three- fourths (1- 3/4ths) times the highest total of principal and interest to
become due in any future twelve months period on all obligations then outstand-
ing and then to be issued.
D. MAINTENANCE AND OPERATION; The City shall maintain
the system in good condition and operate the same in an efficient manner and
at a reasonable cost.
E. INSURANCE: The City agrees to maintain insurance for
the benefit of the holders of the Sanitary Sewer System Revenue Bonds on the
system of a kind and in an amount which usually would be carried by private
companies engaged in a similar type of business.
F. ACCOUNTS AND PERIODIC STATEMENTS: The City shall
cause an audit of the records of the system to be madesach year by a Certi-
fied Public Accountant and a copy of such audit together with the latest
available operating and income statement will be furnished promptly when
available to any of the holders of the bonds upon written request.
G. INSPECTION; The holder or holders of twenty -five
(25%) per centum of the outstanding bonds shall have the right at all reason-
able times to inspect the system and all records, accounts and data of the
City relating thereto.
H. FUTURE AUTHORITY TO COMBINE SEWER AND WATERWORKS
SYSTEMS: In the event the City later obtains necessary authority it may
combine the operations of its sewer and waterworks systems. If and when such
event occurs these bonds, together with revenue bonds issued for waterworks
purposes, then outstanding and any additional revenue -bonds theretofore or
thereafter issued for sanitary sewer or waterworks purposes, will be payable
from and secured by an irrevocable pledge of and lien on the revenues of such
combined systems, and a mortgage on the waterworks system, and if so prescrib-
ed by the City, may be further secured by a mortgage on the sewer system in
the manner and to the extent permitted by law at the time. It is provided,
however, that the systems will not be combined unless it is shown that the
aggregate net earnings of the sanitary sewer and waterworkssytem for the pre-
ceding twelve months period were not less than one and three- fourths (1 -3/4)
times the maximum aggregate total amount of principal and interest to become
due in any future twelve month period on all revenue obligations then out-
standing which were issued either for sanitary sewer or for waterworks pur-
poses, or for both such purposes.
14. The sale of the bonds herein authorized to
NE;IRI LL, LyHCH, PI E[tcc, FcHr,,EPt is Btmi ANo Fi RsT SOUTHWEST —CO.
at a price of par and accrued interest to date of delivery plus a premium of
$ (7,77 , is hereby confirmed. Delivery of such bonds shall be made
to such purchaser as soon as may be after the passage of this ordinance upon
payment therefor in accordance with the terms of sale.
15• The fact that the contemplated use of the proceeds
of the sewer 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
providing that no ordinance or resolution shall be passed finally on the date
it is introduced, and thatsuch 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
ordained.
PASSED AND APPROVED this the day of Defemby , 1955,
Mayor-,—City of Corpus Christi, Texas.
ATTEST:
City Secretar , ty of Corpus C sti,
exas.
The foregoing ordinance hap been approved as to form and
correctness this day of December, 1955.
Cit,fjAttorney.
Corpus C isti, Texas
, ' 1955
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
he 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
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
W, J, Roberts
B, E. Bigler
Manuel P, Maldonado
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