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HomeMy WebLinkAbout05450 ORD - 08/05/1959r I[IIIS:JKH:8 -4 -59 TEXAS: AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER, FOR AND ON BEHALF OF THE CITY TO ENTER INTO AN AGREE- MENT WITH M. E. ALLISON & CO., INC., A TEXAS CORPORATION, FOR THE SERVICES OF SAID COMPANY AND M. E. ALLISON AS FINANCIAL ADVISOR FOR THE CITY IN CONNECTION WITH THE MATTER OF SUBMITTING TO THE QUALIFIED VOTERS OF THE CITY THE PROPOSITION OF ISSUANCE OF CERTAIN BONDS, AND FOR SERVICES FOR THE ISSUANCE OF CERTAIN BONDS ALREADY VOTED, A COP( OF WHICH AGREEMENT 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, 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 M. E. ALLISON & CO., INC., A TEXAS CORPORATION, FOR THE SERVICES OF SAID COMPANY AND M. E. ALLISON AS FINANCIAL ADVISOR FOR THE CITY IN CONNECTION WITH THE MATTER OF SUBMITTING TO THE QUALIFIED VOTERS OF THE CITY THE PROPOSITION OF ISSUANCE OF CERTAIN BONDS, AND FOR SERVICES IN ISSUING CERTAIN BONDS ALREADY VOTED, A COPY OF WHICH AGREEMENT IS ATTACHED HERETO AND MADE A PART HEREOF. SECTION Z. THE NECESSITY TO IMMEDIATELY ENTER INTO AN AGREEMENT WITH M. E. ALLISON & CO., INC. AS SET FORTH IN SECTION 1 ABOVE CREATES A PUBLIC EMERGENCY AND AN IMPERATIVE PUBLIC NECESSITY REQUIRING THE SUSPENSION OF THE CITY CHARTER RULE THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE SEVERAL MEETINGS OF THE CITY COUNCIL, AND THE MAYOR, HAVING DECLARED THAT SUCH EMERGENCY AND NECESSITY EXIST, AND HAVING REQUESTED THAT SUCH CHARTER RULE BE SUSPENDED, 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 DAY OF AUGUST, 1959. AT MAY °,%e.. HE CITY OF CORPUS CHRISTI, TEXAS CITY SECRET APPROVED AS TO LEGAL FORM THIS THE S DAY OF AUGUST, 1959: CITY TTORNEY .a Corpus Christi, Texas August 5, 1959 Honorable Mayor and City Commissioners City of Corpus Christi, Texas Gentlemen: By this proposal we offer our professional services and our facili- ties as Financial Advisors and agree to perform the duties set out herein and such other duties as are normally performed by such advisors, and to per- form all other duties as,xxfx)o= ,x may be necessary or advisable,amax helpful to your City AND REASONABLY PROPER AND NECESSARY IN CONNECTION WITH THE FOLLOWING FINANCIAL MATTERS: This proposal embraces the following: (a) $2,100,000 of various purpose General Obligation Bonds heretofore authorized at the several elections held for those purposes; (b) Approximately $4,000,000 of various purpose General Obligation Bonds to be submitted to voters at an election to be held on AUGUST 29. 1959; (o) $3,500,000 Waterworks Revenue Bonds to be submitted to voters at an election to be held on AUGUST 29 , 1959; We agree: (a) To make a study of the debt structure of your City, the trend of its assessed valuation, its taxing power and the present and estimated future taxing requirements, and on the basis of such study to devise and recommend for your approval a plan of financing to cover the pro- posed bonds. Such plan shall include a suggested maturity schedule and other terms and conditions, such as options of prior payment and the like, as will, in our opinion, result in the issuance and sale of the bonds under terms and conditions most advantageous to your City. (b) To make a study of the operating results of your Waterworks System, and after taking into account any outstanding obligations which are payable from the net revenues thereof, additional net revenues to arise from proposed rate increases, if any, and additional net re- venues as projected by your consulting engineers, to devise and re- commend for your approval a plan of financing to cover the proposed bonds. Such plan shall include a maturity schedule and other terms and conditions, such as options of prior payment, retention of the right to issue additional bonds and the like, as will, in our opinion, result in the issuance and sale of the bonds under terms and condi- tions most advantageous to your City, (c) Under the direction of a firm of recognized municipal bond attorneys to be retained by you, and whose fees will be paid by us (except in the issuance of the $2,100,000 General Obligation Bonds heretofore authorized at elections held for that purpose), we will supervise, assist and advise you upon steps necessary to be taken in the bond election, the legal issuance of the bonds and the final delivery of the bonds to the purchaser. In this connection it is understood that you have retained, or will retain, the firm of McCall, Parkhurst, Crowe, McCall & Horton, whose legal services shall also include rep - dition of an unqualified approving opinion as to the legality of the bonds. (0) TO ADVIOC YOU OF CURRENT DOND GIARKCT CONDITIONS, FORTHCOMING BOND ISSUES AND OTHER GENERAL iNFORiMATION AND ECONOMIC DATA WHICH MIGHT NORMALLY BE EXPECTED TO INFLUENCC INTEREST RATES OR BIDDING CONDF- TIONS $O THAT THE DATE FOR THE SALE OF THE BONDS CAN BE SET AT A TIME WHICH* IN OUR OPINION, WILL DE FAVORABLE. (C) To PREPARC AN OFFICIAL NOTICE 0e SALE* AND OFFICIAL STATEMENT, OR PROSPECTUS, CONTAINING FINANCIAL DATA AND OTHER INFORMATION OF THE NATURE AND TO THE EXTENT ORDINARILY REQUIRED BY MUNICIPAL SECURITIES DEALERS IN 01009NO ON BONDS OF THIS TYPE* AND A UNIFORM BIDDING FORM* ALL OF WHICH WC ARE TO FURNISH IN A SUFFICIENT NUMBER OF COPIES TO PEEMIT NAILING, TO A LIST OF PROSPECTIVE DIDOCRS, INSURANCE COM- PANIES, BANKS AND BOND RATING INSTITUTIONS. OUR MAILING LOST OF t SUCH INSTITUTIONS WILL OE MADE AVAILABLE TO YOUR CITY. (r) TO ATTEND TO AND PAY FOR THE PRINTING OF BONDS. (G) TO PAY THE NECESSARY EXPENSES IN OBTAINING THC APPROVING OPINION OF THE ATTORNEY GENERAL OF THC STATC OF TEXAS AND THC REGISTRATION OF THE BONDS BY THC COMPTROLLER OF PUBLIC ACCOUNTS, AND SHE DE- LIVERY OF THE SOHOS TO THE PURCHASER AT A BANK in AUSTIN, TEXAS. WF AGREE TO DIRECT AND COORDINATE THE ENTIRC PROSRAM OF FINANCING HEREIN CONTCNPLATED AND TO ASSUME AND PAY THE EXPENSES A13OVE ENUMERATED. IT 18 SPECIFICALLY UNDERSTOOD AND AGREED, HOWEVER, THAT THIS OBLIGATION ON OUR PART SHALL NOT COVER ANY LOCAL ELECTION EKPCNSE$ EXCEPT ELECTION SUPPLIES; NOR SHALL IT COVER PUBLICATION COSTS, OR THE EXPENSES OF ANY LITIGATION* AS CONSIDERATION FOR THE SERVICES RENDERED BY US AND AS REIMBURSE- MENT FOR THE EXPENSES WHICH WE ARE TO INCUR, IT 1$ UNDERSTOOD AND AGREED THAT YOUR CITY IS TO PAY AND WE ARE TO ACCEPT A CASH FEE TO BE COMPUTED AS FoLLOWS9 (A) ON THE $2,100 *00D OF HERETOFORE AUTHORIZED GENERAL OBLIGATION BONDS; $3,700 FOR THE FIRST $1,000,000 PLUS $1.65 PER $1,000 FOR ALL OVER $1,000,400; A TOTAL OF 45,515 IF ALL $2,100,000 ARE SOLD; (13) ON THE APPROXIMATELY 44,000,OOO of GENERAL OBLIGATION BONDS TO SC SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD AUGUST 29, 19590 $5,C60.00 FOR THE FIRST $1 *000,000 PLUS 3.00 PER $1,000 FOR ALL OVER $1,OOGO000, AND; IN THE CVCUT ANY ISSUE SHOULD BE LESS THAN $1,000,000, THEN THE FEES TO Be PAID SHALL BE ON THE FOLLOWING BASIS UNTIL A TOTAL OF $5,050.00 HAS BEEN PAID FOR A TOTAL OF $11,000,000 IN BONDS ISSUED AND SOLO, AND THEN SUCH ADDITIONAL BONDS AS ARE ISSUED AMD SOLO SHALL BE FOR A CASH FEE of $3 +00 PER $1,000 BOND: OVER AND NOT MORE THAN -0- $ 50,000 50,040 1550,000 150 *000 250000D G- $121.50 PER $1,000 ,%1,075 PLUS $6.50 PER $1,000 FOR ALL OVER 50,000 0,725 PLUS 5.550 PER $1,000 FOR ALL OVER $150,000 <7 1 Q - AND 'NOT MME InAIY - - >� 50,aao, 350,000 $2. 75 PLUS $5.00 NCh $1,0W FOR ALL 354,000 OVER-$250,000 50Or000 - $2,775 PLu® 44cm PER _ $i,W0 FOR ALL 5�1� 700,000 $3,375 PLUS. 3.50 PER $L,OOO FOR ALL ER 706.000 1a0w,000 0,075 PL 3.25 PER ry $1,OCo Fan ALL OVER 4700,00D -(C) ON -THE $3,500,000 WATEwonicB REVENUE DONO$ TO HE 614EN)TTEI} TO THE VOTERS: bT AN ELECTION TO BE HELD, AUOuST.29,, 19594 $r�, }FOR. THfG . 'FIRSTi,0610,0� AND,,'�•3.00 PER ,$l j040 FOR ALL OVER 1,0QO,tulO. - • _ IN THE EVENT ANY ISSUE SHOULD 4E LESS THAN X1,000,000 THEN THE 'k i FEES'TO OC PAID SHALL ESE ON THE FOLLOWIN0:BASIS UNTIL 'A TOTAL OF- 46,375.00 HAS SEEN PAID FOR A TOTAL OF *1,004,000 IN "NO$,ISSUED AND 804D, AND-THEN SUCH ADD(— -s TIONAL'SONO9 AS ARE IS$UED'AND -SOLD SHALL OS FOR A CASH FEE OF s3:OQ PER �. $1,000 BOND: - '`' OVER' AND noT BORE THAN • a ?7.00 PER ,1,000 50,000 150,000, $1,350 FLU$ $8.00 PER ' $1,000 FOR ALL _ OVER 50,000 - 15©,0s jp,�4 - $2,150 PLUS 7_- c*•PER 1,000 FOR ALL i Ona #1,50,ow a a, 350,E '$2,e50 PLUS 6.00 PER 1,-006 FOR ALL . _ 'COVER 05Ciy�iheL'� . 35x,000 5�, $3,450 PLUS *5,00 PER 41,00 FOR ALL I- OVER' SC M0 0 500,000 700,000 0,40, PLUS }.50 PER *1,W0 FOR ALL - - OVER 00,0!X3 X• 7OO,ODO 1,00b, 0 $50100 PLUG 3.25 PER to FOR ALL 'OVER $700,000 :. - SUCH FEES SMALL 6LCORfE DUE AND PAYABLE SI"LTANEOUSLY WITH THE DE— LIVERY OF THE BONDS TO THE PURCHASER. IN M-EVENT THE ,BOND ELECTION CONTEMPLATCD BY THIS PROPOSAL, ,SHOULD , • ' FAIL, THEN THE .FIE DUE US SMALL 94 $250,CJ6.PLUB 10,40 FOR EACdk VOT INS PRE+ z' CINCT, HOWEVER, SHOU4p THE 4AME OR SIMILAR PROPOSITIONS AGAIN BE SUBMITTED Xf AN ELECTION HELD WITHIN TliELYC MONTHS FROM-DATE HCREOF, THEN AT OUR OP- - T ION =THE AGREEMENT- COVERED BY Th IS- P§0POSAL, 9HALL,APPLY TO AN11 SONDE AUTHORIB- ' ED AT SUCH CLBCtIOH. IH THE EVENT WE SAID OND ELECTION SHOULD CARRY AS TO —3- - r ANY OR MORE OF THE PROPOSITIONS SUBMITTED, THEN THIS PROPOSAL SHALL APPLY TO SAID ISSUES WHICH CARRY AND TERMINATE AS TO ALL OTHERS WITHOUT ANY FEE BEING DUE US FOR THOSE ISSUES WHICH FAIL. SHOULD M. E. ALLISON BECOME UNABLE TO PERSONALLY RENDER THE SER- VICES REQUIRED UNDER THIS AGREEMENT, THE CITY MAY TERMINATE IT WITHOUT LI- ABILITY FOR FEES FOR-UNI3SUED BONDS. - IT IS UNDERSTOOD AND AGREED THAT THE OFFICIALS OF YOUR CITY WILL COOPERATE WITH US AND THE HERETOFORE MENTIONED BOND ATTORNEYS IN THE PASSAGE OF ALL NECESSARY ORDERS OR RESOLUTIONS AND IN THE COMPLETION OF ALL CERTI- FICATE3 REQUIRED IN THE ISSUANCE OF-THE BONDS. THIS AGREEMENT SHALL BE TERMINATED BY THE DELIVERY TO THE PURCHASER OF THE BONDS COVERED HEREBY, OR ON APRIL 1, 1961, WHICHEVER SHALL FIRST OCCURS HOWEVER, IF THE BONDS HAVE NOT BEEN SO DELIVERED WITHIN THE-PERIOD SPECIFIED,.THIS AGREEMENT MAY BE- EXTENDED BY MUTUAL CONSENT. THIS PROPOSAL IS SUBMITTED IN DUPLICATE ORIGINALS. WHEN ACCEPTED BY YOU IT WILL CONSTITUTE THE ENTIRE AGREEMENT BETWEEN YOUR CITY AND THE UNDER- SIGNED FOR THE PURPOSE AND CONSIDERATIONS HEREIN SPECIFIED. YOUR ACCEPTANCE WILL BE BY THE SIGNATURE OF YOUR CITY MANAGER, ATTESTED BY YOUR CITY SECRETARY, ON BOTH COPIES AND RETURNING ONE EXECUTED COPY TO US. RESPECTFULLY SUBMITTED, M. L ALLISON & CO.,' INC. NATIONAL BANK OF COMMERCE BUILDING SAN ANTONIO, TEXAS BY: M. . ALLISON, PRESIDENT ACCEPTANCE ACCEPTED PURSUANT TO ADOPTED BY THE OF ON THIS THE DAY OF , 19 . ATTEST: CITY SECRETARY CITY MANAGER ® -i Aar, A09p p$I CoyNGL CORPUS CHRISTI TEXAS _DAY OF 1959 TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTIO TEXAS FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FORE- GOING ORDINANCES A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPENSION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLU- TION SHALL BE PASSED FINALLY ON THE DATE IT IS INTRODUCEI)p AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE MEETINGS OF THE CITY COUNCIL; I THEREFORES HEREBY REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIRE- MENT AND PASS THIS ORDINANCE FINALLY ON THE DATE IT IS INTRODUCED,, OR AT THE PRESENT MEETING OF THE CITY COUNCIL. RESPECTFULLY, OR ✓tG ^,./ THE CITY OF CORPUS CHRISTI,TEXAS THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE: ELLROY KING /J JAMES L. BARNARD Au . MRS. RAY AIRHEART �`� JOSEPH B. DUNN PATRICK J. DUNNE R. A. HUMBLE GABE LOZANO� SR. THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE: ELLROY KING JAMES L. BARNARD MRS. RAY AIRHEART JOSEPH B. DUNN PATRICK J. DUNNE R. A. HUMBLE GABE LOZANO, SR.