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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: MICROFILMED tEP 0 31980 t 1110 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. MICROFILMED SEP 0 31980 .r. 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. 0,EP 0 i 3 80 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"