HomeMy WebLinkAboutMinutes City Council - 02/15/1978 - SpecialPRESENT:
Mayor Gabe Lozano, Sr.
Mayor Pro Tem Bob Gulley
Council Members:
David Diaz
Ruth Gill
Joe Holt
Edward L. Sample
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
SPECIAL COUNCIL MEETING
FEBRUARY 15, 1978
11:00 A. M.
City Manager R. Marvin Townsend
City Attorney J. Bruce Aycock
City Secretary Bill G. Read
•
Mayor Gabe Lozano called the meeting to order in the Council Chambers
of City Hall.
City Secretary Read called the roll of required Charter Officers and
stated that a quorum was present to conduct a legally constituted meeting.
Mayor Lozano stated that the purpose of the meeting was for the receipt
and opening of bids for the sale of $11,000,000 of General Improvement Bonds voted
on November 8, 1977.
Mr. Harold Zick, Director of Finance, opened and read bids from the following
six firms: First National Bank in Dallas; Republic National Bank of Dallas;
Merrill, Lynch, Pierce, Fenner & Smith, Inc.; Morgan Guaranty Trust Co. of N.Y.;
Corpus Christi National Bank; and John Nuveen & Co., Inc. (Bid tabulations of the
bids from these firms are attached and constitute a portion of the minutes.)
The meeting was recessed at 11:20 a.m. for the computation of bids.
The meeting was reconvened at 11:45 a.m.
City Manager Townsend recommended award of bid for $11,000,000 of General
Improvement Bonds, Series 1978, for the Convention Center, to First National Bank
in Dallas, with an effective interest rate of 4.8980.
Motion by Diaz that the City Manager's recommendation be approved; seconded
by Holt, and passed unanimously.
City Manager Townsend presented the following Resolution and Ordinance
pertaining to the sale of bonds for the Convention Center, and they were approved
by the following vote:
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Minutes
Special Council Meeting
February 15, 1978
Page 2
RESOLUTION NO. 14175:
APPROVING THE FORM OF THE OFFICIAL STATEMENT PERTAINING TO CITY OF CORPUS CHRISTI,
TEXAS, GENERAL IMPROVEMENT BONDS, SERIES 1978, AND AUTHORIZING, RATIFYING AND APPROVING
THE OFFICIAL STATEMENT AND THE USE THEREOF IN THE OFFERING AND SALE OF SAID BONDS;
AND DECLARING AN EMERGENCY.
The Charter Rule was suspended and the foregoing resolution was passed by the
following vote: Lozano, Gulley, Diaz, Gill, Holt, and Sample voting "Aye".
ORDINANCE NO. 14176:
PROVIDING FOR THE ISSUANCE OF $11,000,000 CITY OF CORPUS CHRISTI, TEXAS, GENERAL
IMPROVEMENT BONDS, SERIES 1978, BEARING INTEREST AT THE RATES HEREINAFTER SET FORTH,
AND PROVIDING FOR THE LEVY,' ASSESSMENT AND COLLECTION OF A TAX SUFFICIENT TO PAY
THE INTEREST OF SAID BONDS AND TO CREATE A SINKING FUND FOR THE REDEMPTION THEREOF
AT MATURITY; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND DECLARING AN EMERGENCY.
The Charter Rule was suspended and the foregoing resolution was passed by the
following vote: Lozano, Gulley, Diaz, Gill, Holt, and Sample voting "Aye".
There being no further business to come before the Council during this
Special Meeting, on motion by Gulley, seconded by Holt, and passed unanimously;
the meeting was adjourned at 12:05 p.m.
a
BOND RATINGS - Moody's Investors Service, Inc. Aa
Standard &'Pooi"s Corporation AA
CITY OF CORPUS CHRISTI, TEXAS
BID TABULATION - $11,000,000 GENERAL IMPROVEMENT BONDS, SERIES 1978
BIDS OPENED: 11:00 A.M., FEBRUARY 15, 1978
BIDDER
Lrst National Bank in Dallas
Bank of America N.T. and S.A.
Loeb Rhoades Hornblower & Co.
Southeast First National Bank of Miami
Girard Bank
Fort Worth National Bank
Paine, Webber, Jackson & Curtis, Inc.
Texas Commerce Bank N.A.
E. F. Hutton & Co., Inc.
Bank of Oklahoma N.A.
Kidder, Peabody & Co., Inc.
Weeden & Co., Inc.
Bank of the Southwest N.A.
Allied Bank of Texas
Goldman, Sachs & Co.
epublic National Bank of Dallas
Bathe Halsey Stuart Shields Inc.
Cullen Center Bank & Trust
Loeb Rhoades, Hornblower & Co.
Shearson Hayden Stone Inc.
Smith Barney, Harris Upham & Co., Inc.
White, Weld & Co., Inc.
Eppler, Guerin & Turner, Inc.
Stern Brothers & Company
United Missouri Bank of Kansas City
Effective Total Less Net
Interest Interest Cash Interest
Rate Cost Premium Cost
4.8980 $6,416,800.00 $ 306.50 $6,416,493.50'
4.9167 6,441,200.00
errill Lynch Pierce Fenner & Smith, Inc. 4.9298
300.00 6,440,900.00
6,458,200.00 144.00
organ Guaranty Trust Co. of N.Y. 4.9321 6,461,150.00
Salomon Brothers
Donaldson, Lufkin & Jenrette Sec. Corp.
Bear, Sterns & Co.
Arpus Christi National Bank 4.933931 6,463,450.00
Mercantile National Bank - Dallas
Capital National Bank - Houston
American National Bank - Austin
'ohn Nuveen & Co., Inc. 4.9694 6,509,925.00
Harris Trust & Savings Bank
Bowles Winston & Co. (Div. Cowen & Co.)
Rauscher Pierce Sec. Corp.
Underwood Neuhaus & Co., Inc.
United California Bank
First Southwest Co.
Kirchner, Moore & Co.
Greer, Moreland, Fosdick, Inc.
The Northern Trust Co.
The First Boston Corp.
A. G. Becker Mun. Sec. Inc.
Wauterlek & Brown, Inc.
6,458,056.00
6,461,150.00
6,463,450.00
6,509,925.00
INTER -OFFICE COMMUNICATION
� Dept.Legal
City Manager, Mayor, Members of the
/To City Council. and City Secretary
Frau J. Bruce Avcock, Ci y A torney
Date
February 7, 1978
Subject Filling varanriec in the nffirec of Mayor, Mayor Pro -Tem and Council Member_
Article VI, Section 11, of the Corpus Christi City Charter, provides in
part:
"If any officer or any employee of the city shall file as
a candidate for nomination or election to any public
office, except to some office under this charter, he shall
immediately forfeit his office or employment."
A copy of that charter provision in full is attached as Exhibit "A".
Mayor Jason Luby, on February 6, 1978, in Austin, Texas, filed as a
candidate for nomination or election to the office of United States
Congressman for the Fourteenth District with the State Chairman of the
Democratic Party in furtherance of his candidacy in the May party pri-
maries. A copy of that filing is attached as Exhibit "B".
In my opinion, the action of the Mayor in so filing has immediately
forfeited his office as Mayor, as provided in Article VI, Section 11,
of the City Charter.
Article II, Section 13 of the City Charter, specifies the procedure to
fill the vacancy in the office of the mayor and the subsequent vacancy
in the office of councilman created by the elevation of the mayor pro
tem to the office of mayor. A copy of Article II, Section 13, of the
Charter is attached as Exhibit "C". It provides that the mayor pro tem
shall immediately become the mayor upon a vacancy existing in the office
of the mayor, provided there is no recall petition on file at the time to
recall the commissioner who is mayor pro tem.
When the mayor pro tem steps up, the office of mayor pro tem becomes vacant
and the remainder of the commissioners shall forthwith by election desig-
nate a new mayor pro tem.
At the time the mayor pro tem becomes the mayor, such individual shall
forthwith resign his office of a commissioner and his vacancy shall be
filled as provided in Section 15, Article II, of the City Charter, regard-
ing vacancies in the office of the councilman. It should be remembered
that the new councilman shall have the same qualifications for such
vacancy as the original officer had under Section 2 of Article II with
respect to residency requirements in a particular district.
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City Manager, Mayor, Members of the
City Council, and City Secretary
February 7, 1978 -- Page 2
A survey of Texas and Federal court decisions has been made and in my
opinion the case of Willis v. City of Fort Worth, 380 S.W.2d 814 (Tex.Civ.
App. --Fort Worth, 1970, ref. n.r.e.), which upheld a similar provision in
the Fort Worth city charter as being consitutional and sustained a similar
forfeiture of city office, is the precedent which this Council should follow.
While it may be contended that the City is attempting to prescribe the
qualifications of a candidate for United States Congressman as was argued
in Stack v. Adams, 315 F.Supp. (N.D. Fla. 1970), where Florida had a statute
imposing resignation from any other office as a prerequisite to qualifying
as a candidate for a second office, such is not the case. Like the Hatch
Act, the City Charter allows any City officer to file for any office he
chooses but if the office is not a Charter office then upon filing he for-
feits his City office.
Based on the above discussion, the following procedure is suggested:
1. Motion to recognize Mayor Pro -Tem Lozano as Mayor in
view of Mayor Luby's having filed for other public
office and forfeited his office as Mayor. After such
recognition, Mr. Lozano resigns as a Council member,
Place 3.
2. Forthwith elect new Mayor Pro -Tem.
3. Appointment to fill Council vacancy; appointee must
have same residency qualifications as Mr. Lozano had
at time of election as Councilman.
2-
j. Bruce Aycock
City Attorney
JBA:jkh
Attachs.
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AGENDA
CITY OF CORPUS CHRISTI, TEXAS
SWEARING IN CEREMONIES
COUNCIL WORKSHOP MEETING
FEBRUARY 8, 1978
9:00 A. M.
1. Oath of Office
2. Assumption of seat at Council Table
3. Presentation of name plate
4. Acceptance speech
5. Introduction of Guests of new Council Member
NliL ROFILMEI
SEP 031980"