HomeMy WebLinkAbout04415 ORD - 12/14/1955THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CIM ISTI
On this the 1 =VrH day of December, 1955, the City Council
of the City of Corpus Christi, Texas, convened in ;acti,aL 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 Tiring, City Secretary,
Russell E. McClure, City Manager,
I. M. Singer, City Attorney,
with the following absent: NONE , constituting
a quorum, at which time the following among other business was transacted:
Mr. VCCLURE 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 1-41 1955•
TO THE P214DERS 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,
Isl Farrell D. Smith,
Mayor
City of Corpus Christi, Texas."
4415
Commissioner I11ALDOPIADO 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 CULLI The motion was carried by
a unanimous vote by the City Council, viz:
AYES: Commissioners Culli, Bigler, Roberts and Maldonado.
NOES: None.
Commissioner RoeE;;TS made a motion that the
ordinance be passed finally. The motion was seconded by Commissioner
BIcLE','. The motion was carried by the following vote:
Aye. This was done.
AYES: Commissioners Culli, Bigler, Roberts and Maldonado.
NOES: None.
The Mayor requested that the records show that he voted
The Mayor announced that the ordinance had been passed.
The ordinance is as follows:
ORDINANCE NO. H /S
BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS, AUTHORIZING THE ISSUANCE OF CITY OF CORPUS
CHRISTI, TEXAS, GAS SYSTEM REVENUE BONDS, SERIES
1955, IN THE AMOUNT OF ONE HUNDRED FIFTY THOUSAND
($150,000.00)DOLLARS, BEARING INTEREST AT THE RATES
HEREINAFTER PROVIDED; ISSUED FOR THE PURPOSE OF IM-
PROVING, REPAIRING AND EXTENDING THE CITY'S GAS
SYSTEM; TO BE SECURED BY AND PAYABLE FROM A PLEDGE
OF THE NET REVENUES OF THE CITY'S GAS SYSTEM; PROVID-
ING THAT THE LIEN UPON THE REVENUES SECURING SUCH
BONDS SHALL BE OF EQUAL DIGNITY AND ON A PARITY
WITH THE PLEDGE SECURING $1,000,000.00 CITY OF CORPUS
CHRISTI, TEXAS, GAS SYSTEM REVENUE BONDS, SERIES 1950;
CITY OF CORPUS CHRISTI, TEXAS, GAS SYSTEM REVENUE
BONDS, SERIES 1954, $400,000.00 AND CITY OF CORPUS
CHRISTI, TEXAS, GAS SYSTEIVI REVENUE BONDS, SERIES 1954 -A,
$200,000.00; MAKING CERTAIN COVENANTS OF THE CITY IN
REFERENCE TO TIM BONUS AND THE BOND FUND FROM WHICH
SAID PRINCIPAL AND INTEREST IS TO BE PAID; ENACTING
OTHER PROVISIONS RELATING TO THE SUBJECT AND DECLAR-
ING AN EMERGENCY.
WHEREAS, the City of Corpus Christi, Texas, has heretofore
authorized the issuance of $1,000,000.00 of City of Corpus Christi Gas System
Revenue Bonds, Series 1950, dated January 15, 1950, said bonds being secured
by and payable from the net revenues derivable from the City's Gas System; and
WHEREAS, such bonds were issued and sold in accordance
with law; and
WHEREAS, the ordinance authorizing such Revenue Bonds'
provides that additional bonds secured solely by a pledge of the net revenues
of said Gas System may be issued while said Series 1950 Revenue Bonds are out.
standing for the purpose of making improvements, repairs and extensions to
the City's Gas System, and that the payment of such additional bonds may be
secured by a lien upon the revenues of such gas system of equal dignity and
on a parity with the lien securing the Series 1950 Revenue Bonds, provided
that no such additional bonds shall be issued in an amount and under terms
and conditions which would cause the aggregate of all annual pledges securing
said Series 1950 Revenue Bonds and additional bonds to exceed Fifty Seven and
one - tenth (157.1p)per cent of the average annual net revenues of the City's
Municipal Gas System for five fiscal years next preceding; and
WHEREAS, it was found necessary to immediately improve,
repair and extend the City's Gas System; and
WHEREAS, pursuant to such finding, an election was held
in the City of Corpus Christi, Texas, on the 24th day of November, 1953,
resulting favorably to the issuance of $1,000,000.00 Gas System Revenue
Bonds, secured by a pledge of the net revenues from the operation of said
system; and
WHERMS, on March 17, 1954, the City Council of the City
of Corpus Christi, Texas, passed an ordinance directing the issuance of
$400,000.00 City of Corpus Christi, Texas, Gas System Revenue Bonds, Series
1954, dated January 15, 1954, (hereinafter called "Series 1954 Bonds "),
reserving to the City the right to issue the remaining $600,000.00 of such
bonds as and when needed and as conditions would permit; and
WHEREAS, On December 15, 1954, the City Council of the
City of Corpus Christi, Texas, passed an ordinance directing the issuance of
$200,000.00 City of Carpus Christi, Texas, Gas System Revenue Bonds, Series
1954 -A, dated December 15, 1954, (hereinafter called "Series 1954 -A Bonds "),
reserving to the City the right to issue the remaining $400,000.00 of such
bonds as and when needed and as conditions would permit; and
WHEREAS, it is deemed advisable that $150,000.00 of said
authorized bonds be issued and sold at this time, the remaining $250,000.00
of such bonds to be issued at a later date as and when needed and as con-
ditions will permit; and
WHEREAS, it has been determined that the aggregate of all
annual pledges securing the Series 1950 Revenue Bonds, the Series 1954 Revenue
Bonds, the Series 1954 -A Revenue Bonds and the additional bonds hereafter
authorized to be issued will not exceed Fifty Seven and one -tenth (57.1 %)
per cent of the average annual net revenues of the City's Municipal Gas
System for the five (5)fiscal years next preceding the date of the issuance
of such additional bonds; and
WHEREAS, it is deemed advisable, expedient and necessary
that such additional bonds now be issued;
BE IT ORDAINED BY THE CITY COUNCIL OF TAE CITY OF
CORPUS CHRISTI, TEXAS:
1. That the bonds of the City of Corpus Christi, Texas,
be issued in the principal amount of One Hundred Fifty Thousand ($150,000.00)
Dollars, to be known and designated as "City of Corpus Christi, Texas, Gas
System Revenue Bonds, Series 1955 ", for the purpose of improving, repairing
and extending the City's Gas System, under and in strict conformity with the
Constitution and laws of the State of Texas, particularly Articles 1111 to
1118, both inclusive, of the Revised Civil Statutes of Texas, 1925, as amendei
and the Charter of said City.
2. That said bonds shall be dated December 15, 1955,
shall be numbered from One (1) to One Hundred Fifty (150), both inclusive,
shall be in the denomination of One Thousand (1,000.00) Dollars each, aggre-
gating One Hundred Fifty Thousand ($150,000.00) Dollars, and shall become due
and payable on the 15th day of January in each of the years and in the
respective amounts shown in the following schedule, to -wit:
BONDS NUMBERS
MATURITY DATES
AMOUNTS
1
to
15, both incl.,
January
15,
1957,
$ 15,000.00
16
to
30, "
January
15,
1958,
15,000.00
31
to
45, " "
January
15,
1959,
15,000.00
46
to
60,
January
15,
1960,
15,000.00
61
to
75, "
January
15,
1961,
15,000.00
76
to
90, "
January
15,
1962,
15,000.00
91
to
105, "
January
15,
1963,
15,000.00
106
to
120,
January
15,
1964,
15,000.00
121
to
135, "
January
15,
1965,
15,000.00
136
to
150,
January
15,
1966,
15,000.00
3. Said bonds shall bear interest at the following
rates:
Bonds Nos. 1 to 150 , both incl., per annu:
Bonds Nos. to -, " " co per annum,
Bonds Nos. to % per annum.
Bonds Nos. to " % per annum;
payable July 15, 1956, and semi- annually thereafter on January 15th and
July 15th of each year until the principal sum is paid. Both principal and
interest shall be payable in lawful money of the United States of America at
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 interest
falling due on and prior to maturity shall be payable only upon presentation
and surrender of the interest coupons attached to said bonds as they severall:
become due.
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.
follows:
Wlem
5. The form of said bonds shall be substantially as
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
GAS SYSTEM REVENUE BOND
SERIES 1955
$1,000.00
The City of Corpus Christi, in the County of Nueces,
State of Texas, for value received, hereby acknowledges itself indebted to
and promises to pay to bearer on the 15th day of January, 19 , solely
from the special fund hereinafter specified, the sum of
ONE THOUSAND DOLLARS
with interest thereon from date at the rate of (*/) per cent per annum, in-
terest payable on the 15th day of July, 1956, and semi - annually thereafter on
January 15th and July 15th of each year until the principal sum shall be paid
Interest falling due on and prior to maturity is payable only upon presen-
tation and surrender of the interest coupons hereto attached as they severall,
become due and all interest shall be payable only from the special fund here-
inafter specified. Both principal and interest are payable in lawful money
of the United States of America at 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 date of this bond in conformity with the ordinance
hereinafter mentioned is December 15, 1955.
This bond is one of a series of One Hundred Fifty (150)
bonds of li:ie date and tenor, except as to number, interest rate and maturity,
numbered from One (1) to One Hundred Fifty (150), both inclusive, in the
denomination of One Thousand ($11,000.00) Dollars each, aggregating One Hundrec
Fifty Thousand (150,000.00) Dollars, (being part of a total authorized issue
aggregating 1,000,000.00), and issued for the purpose of improving, repairinE
and extending the City's Gas System, under and in strict conformity with the
Constitution and laws of the State of Texas, particularly Articles 1111 to
1118, both inclusive, Revised Civil Statutes of Texas, 1925, as amended,
and the Charter of said City, and by authority of a vote of the duly quali-
fied resident electors of said City who owned taxable property within said
City and who had duly rendered the same for taxation, at an election held on
November 24, 1953, and pursuant to an ordinance passed by the City Council of
the City of Corpus Christi, Texas, and duly recorded in the minutes of said
City Council.
Each successive holder of this bond and each successive
holder of each of the coupons hereto attached is conclusively presumed to
forego 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
thereof, howsoever 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 without notice, thereby has acquired absolute title thereto,
free from any defenses enforceable against any prior holder and free from
all equities and claims of ownership of any such prior holder. The City of
Corpus Christi and its officials and fiscal agent shall not be affected by
any notice to the contrary.
The City reserves the right to issue the remaining
$250,000.00 Revenue Bonds authorized at the election held in said City on the
24th day of November, 1953, and additional parity revenue bonds, under the
conditions stated in the ordinance authorizing this bond and the ordinance
authorizing City of Corpus Christi Gas System Revenue Bonds, dated January
15, 1950; the ordinance authorizing City of Corpus Christi Gas System Revenue
Bonds, dated January 15, 1954, and the ordinance authorizing City of Corpus
Christi Gas System Revenue Bonds, dated December 15, 1954, said bonds to be
payable from the same source as Ve the bonds of this issue, the Gas System
Revenue Bonds dated January 15, 1950, the Gas System Bonds dated January 15,
1954 and the Gas System Bonds dated December 15, 1954, secured by the same
revenues, and shall be on a parity with this issue of bonds, the Gas System
Revenue Bonds, dated January 15, 1950, the Gas System Revenue Bonds, dated
January 15, 1954, and the Gas System Revenue Bonds, dated December 15, 1954.
This bond shall not be deemed to constitute a debt of the
City of Corpus Christi nor a pledge of its faith and credit, but together
with City of Corpus Christi Gas System Revenue Bonds, dated January 15, 1950,
City of Corpus Christi Gas System Revenue Bonds, dated January 15, 1954, and
City of Corpus Christi Gas System Revenue Bonds, dated December 15, 1954, sha:
be payable as to principal and interest solely from the net revenues derived
from the operation of the City's Gas System, including all additions, ex-
tensions and improvements thereto which may hereafter be made, after deductio
of the reasonable expenses of maintenance and operation of said system. The
holder hereof shall never have the right to demand payment of this obligation
out of any funds raised or to be raised by taxation.
IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED that the
issuance of this bond and the series of which it is a part is duly authorized
by law; that all acts, conditions and things required to exist and to be done
precedent to and in the issuance of this series of bonds to render the same
lawful and valid, have been properly done and performed and have happened in
regular and due time, form and manner, as required by law; that due 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 the net revenues of
said Gas System; and that the issuance of this series of bonds does not exceed
any Constitutional or Statutory limitation.
IN TESTIMONY WBEREOF, 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, all as of the 15th day of December, 1955•
Mayor, City of Corpus Christi, Texas.
CODNTERSIGNED:
City Secretary, City of Corpus Christi,
Texas.
*(Bonds Nos. 1 to 150 both incl., t�'41 per annum;
Bonds Nos. to " per annum;
Bonds Nos. to " " per annum;
Bonds Nos. tc per annum.)
6. The form of coupon to be attached to said bonds shall
be substantially as follows:
NO. $
ON THE 15TH DAY OF
, 19
The City of Corpus Christi, in the County of Nueces,
State of Texas, promises to pay to bearer at Harris Trust and Savings Banh,
Chicago, Illinois, or, at the option of the holder, at the Corpus Christi
National San: -:, 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,
solely from the special fund specified in the bond to which this coupon is
attached, said sum being the interest due that day on "City of Corpus Christi,
Texas, Gas System Revenue Bond, Series 1955`, 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.
7. That substantially the following certificate shall
be printed on the back of each of said bonds:
OFFICE OF CO1=OLLER
REGISTER NO.
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 he
finds that it has been issued in conformity with the Constitution and laws of
the State of Texas, and is a valid and binding special obligation of said City
of Corpus Christi, Texas, payable frora revenues pledged to its payment by and
in the ordinance authorizing same, andsaid bond has this day been registered
by me.
WITIESS MY HAND and seal of office at Austin, Texas,
Comptroller of Public Accounts of the
State of Texas.
3. DEFINITIONS: The term "System" as used in this
ordinance shall mean and include the entire Municipal Gas System of the City
of Corpus Christi, Texas, including real estate, personal and intangible
properties, whether lying within or without the boundaries of the City,
together with all additions and extensions thereto and improvements and
replacements thereof hereafter constructed or acquired.
The term "Net Revenues" as used herein shall mean the
gross revenues from the System after deduction of the reasonable expense of
operation and maintenance thereof, including all salaries, labor, materials,
interest, repairs and extensions necessary to render efficient service and
every proper item of expense as provided by Article 1113 of the Revised
Civil Statutes of Texas, 1925, as amended.
The term "Bonds" as used herein shall mean the One
Hundred Fifty Thousand ($150,000.00) Dollars Revenue Bonds authorized by
this ordinance.
The term "1954 -A Bonds" as used herein shall mean the
"City of Corpus Christi Gas System Revenue Bonds" dated December 15, 1954,
originally issued and now outstanding in the amount of $200,000.00;
The term "1954 Bonds" as used herein shall mean the
"City of Corpus Christi Gas System Revenue Bonds" dated January 15, 1954,
originally issued in the amount of $400,000.00, of which issue $385,000.00
are outstanding;
The term "1950 Bonds" as used herein shall mean the
"City of Corpus Christi Gas System Revenue Bonds" dated January 15, 1950,
originally issued in the amount of $1,000,000.00, of which issue $750,000.00
are outstanding.
9. PLEDGE OF 112VEIMS: The Net Revenues of the System
are irrevocably pledged to the payment of principal of and interest on the
Bonds authorized by this ordinance, the 1954 -A Bonds, the 1954 Bonds and the
1950 Bonds. For the benefit of the original purchasers of the Bonds, the
1954 -A Bonds, the 1954 Bonds and the 1950 Bonds and for the benefit of any
and all subsequent holders of said bonds, coupons, or any part thereof, and
in addition to all other provisions and covenants in the laws of the State
of Texas and in this ordinance, it is expressly stipulated:
A. RATES: The City shall fix and maintain rates and
collect charges for the facilities and services afforded by the system, which
will provide revenues sufficient at all times:
(1) To pay for all operation, maintenance, depreciation,
replacement and betterment charges of the system;
(2) To establish and maintain the Bond Fund, including
the Reserve Account;
(3) To establish and maintain the Operating Reserve
Fund;
(4) To pay any indebtedness other than the Bonds,
the Series 1954 -A Bonds, the Series 1954 Bonds and the 1950
Bonds against the System, as and when the same becomes due.
Provided also that no free service of the System shall be allow-
ed and should the City or any of its agencies or instrumentalities
make use of the services and facilities of the System, payment
of the reasonable value thereof shall be made by the City out of
the funds derived from sources other than the revenues and income
of the System.
B. USE OF REVENUES: The City will deposit as collected
all revenues derived from the operation of the system into a separate account
(herein called the "Gas System Fund" or the "System Fund" which shall be kept
separate and apart from all other funds of the City.
10. All of the terms, provisions, covenants and con-
ditions contained in the ordinance passed January 12, 1950, authorizing the
issuance of $1,000,000.00 Gas System Revenue Bonds, dated January 15, 1950,
shall be and are hereby made applicable to the Bonds authorized by this
ordinance except that the provisions thereof relating to payments to be made
into the Bond Fund (including the Reserve Account) shall be increased in
amounts sufficient to meet promptly the requirements for the payment of
principal and interest on the Bonds and the establishment of a twenty (20%)
per cent reserve for such debt service requirements.
11. It is expressly provided that the additional parity
revenue bonds referred to in Section 9 c of said ordinance of January 12, 195(
shall include the $250,000.00 of gas system revenue bonds voted November 24,
1953, not being issued at this time, and thatsuch unissued bonds later may
be issued under the terms and conditions set forth in said Section 9 c.
12. The City further covenants by and through this
ordinance as follows:
(A) That the revenue bonds authorized hereunder shall be
special obligations of the City, and the holder thereof shall never have the
right to demand payment thereof out of funds raised or to be raised by tax-
ation.
(B) That 'it has the lawful power to pledge the revenues
supporting this issue of bonds and has lawfully exercised said power under the
Constitution and laws of the State of Texas, including power existing under
Articles 1111 to 1118, both inclusive, Revised Civil Statutes of Texas, 1925,
with amendments thereto; and by authority of a majority of the qualified
electors of said City voting at an election held on the 24th day of November,
1953; that the bonds issued hereunder together with the 1954 -A Bonds, the
1954 Bonds and the 1950 Bonds shall be ratably secured under said pledge of
income, in such manner that one band shall have no preference over any other
bond of said issue or issues.
(C) That other than for the payment of the 1950 Bonds,
the 1954 Bonds, the 1954 -A Bonds and the Bonds herein provided to be issued,
the rents, revenues and income of said System are not in any manner pledged
to the payment of any debt or obligation of the City nor of said System.
(D) In addition 'b the moneys to be paid into the Bond
Fund from the revenues produced by said System, the City will pay into said
Fund the money represented by interest accrued on said bonds from their date
to the date of delivery to the purchasers thereof.
13. It shall be the duty of the Piayor tD submit the
record of said Bonds and the Bonds to the Attorney General of the State of
Texas for approval and thereafter to have them registered by the Comptroller
of Public Accounts of the State of Texas.
14. The sale of the bonds herein authorized to
FIRST OF TEXAS C0RPOjAT1ON AND MW AR INVESTMENT CORPORATION
at a price of par and accrued interest to date of delivery plus a premium of
283.00 , 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. That the publicimportance and the pressing need for
the permanent improvements to be constructed with the use of the proceeds of
said Bonds create an emergency and an imperative public necessity requiring
the suspension of rules and Charter provisions requiring same to be consider-
ed and voted upon at three regular meetings, and such facts require that this
ordinance be passed and take effect immediately as an emergency measure, and
such rules and provisions are hereby suspended and this ordinance is passed
and shall take effect as an emergency measure, and shall be in full force and
effect immediately upon its passage.
PASSED AND APPROVED this the IL day of December, 1955•
Mayor, City of Corpus Christi, Texas.
ATTEST:
City Secretary, ty of Corpus Cj isti,
exas. (/
APPROVED AS TO FORM AND LEG.L;TY
PRIOR TO PAS SAGP4: A)— � `(, 14 $5
City attorney, CitV of Corpus Christi,
Texas.
(SEAL)
Corpu trristi, Texas
2955
TO- TK,IM BERS OF THE CITY COUNCIL
Corp", 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 them 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,
MAYS
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
`14U�
NOW',
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