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HomeMy WebLinkAboutMinutes City Council - 07/22/1981 - Special (2)MINUTES CITY OF CORPUS CHRISTI, TEXAS SPECIAL COUNCIL MEETING JULY 22, 1981 11:25 A.M. PRESENT: Mayor Luther Jones Council Members: Jack K. Dumphy Bob Gulley Herbert Hawkins Dr. Charles Kennedy Cliff Zarsky ABSENT: Mayor Pro Tem Betty N. Turner City Manager Marvin Townsend City Attorney J. Bruce Aycock City Secretary Bill G. Read Mayor Luther Jones called the meeting to order in the Council Chamber of City Hall and stated that the purpose of the meeting was to conduct bid openings on $8,000,000 of general obligation bonds and for $25,000,000 of water revenue bonds. City Secretary Bill G. Read verified that the necessary quorum of the Council and required Charter Officers were present to conduct a legally consti- tuted meeting. Motion by Gulley that Mayor Pro Tem Betty N. Turner, who was out of the City, be excused for just cause; seconded by Dumphy; and passed unanimously. City Manager Marvin Townsend informed the Council that the bonding authority who had prepared the bid documents had inadvertently reversed the bond ratings for the two sales; the financial advisor for the sale is of the opinion that he should personally contact the bidders to be sure that their bids did not rely on these ratings; and suggested that the bid opening be delayed until all bidders have been contacted. Motion by Zarsky that the meeting be recessed at 11:28 a.m., seconded by Dumphy and passed unanimously. * * * * * * * * * * *'* * * * * * * * * * * * * * * * * * * * * * Mayor Jones reconvened the meeting at 11:40 a.m. City Manager Townsend introduced the bond attorney and financial advisor for the bond sale , Mr. M. E. Allison and Mr. Hobby McCall, and explained their function in connection with the sale of bonds. Mr. Townsend also commented that MICROFILMED st? j 1St Minutes Special Council Meeting July 22, 1981 Page 2 the bond market is at its very worse condition. Mr. Harold F. Zick, Director of Finance, conducted the bid opening on the sale of the $8,000,000 in General Improvement Bonds, Series 1981, from the following financial institutions: City Bank of New York, Morgan Guaranty Trust of New York, Roehls-Winston Division, and the Republic Bank of Dallas. Mr. Zick then opened the bids on the $25,000,000 First Lien Waterworks System Revenue Bonds, Series 1981, from the following firms: First Boston Corporation; E. F. Hutton Company; John Nuveen Company; Drexel, Berman and Lambert; and Solomon Brothers Association. Mr. M. E. Allison inquired if it would be possible to inform the low bidders as to whether or not the bonds will be sold so that they sale of the bonds as soon as possible. He stated that he ees no relief for more favorable interest rates in the near future. Council Member Zarsky expressed the opinion that the Council should go ahead with the sale because he sees no conditions that would improve the market. Council Member Gulley asked Mr. Allison about the effect on the interest rates considering the flood of bonds that are being sold that do not directly relate to capital improvements for governmental entities. Mr. Allison stated that this practice is just taking money from the source that would ordinarily provide for general obligation bonds, but industry has urged the sale of the other tax-exempt bonds. Motion by Zarsky that the bonds be sold, seconded by Dumphy and passed unanimously. City Manager Townsend informed the Council that the award of bid will be made during the afternoon session. Motion by Gulley that the Special Council meeting be recessed at 12:24 p.m., seconded by Dumphy and passed unanimously. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * n * * * Mayor Jones reconvened the Special Council meeting at 2:09 p.m. City Manager Townsend stated that the bids had been tabulated and then recommended that the award of bid for the $8,000,000 General Improvement Bonds be made to Republic Bank of Dallas and that the $25,000,000 of the' Waterworks Minutes Special Council Meeting July 22, 1981 Page 3 System Revenue Bonds be made to First Boston Corporation. Motion by Dumphy that the Council accept the City Manager's recommenda- tion for the award of bonds, seconded by Zarsky and passed unanimously. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * City Manager Townsend then presented the ordinances and resolutions per- taining to the sale of the bonds; City Secretary Read polled the Council for their votes; and the following ordinances were passed: ORDINANCE NO. 16411: BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, PROVIDING FOR THE ISSUANCE OF $8,000,000 CITY OF CORPUS CHRISTI, TEXAS GENERAL IMPROVEMENT BONDS, SERIES 1981, BEARING INTEREST AT THE RATES HEREINAFTER SET FORTH,, AND PROVIDING FOR THE LEVY, ASSESSMENT AND COLLECTION OF A TAX SUFFICIENT TO PAY THE INTEREST ON 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 ordinance was passed by the fol- lowing vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and Zarsky voting "Aye"; Turner, absent. RESOLUTION NO. 16412: APPROVING THE FORM OF THE OFFICIAL STATEMENT PERTAINING TO CITY OF CORPUS CHRISTI, TEXAS GENERAL IMPROVEMENT BONDS, SERIES 1981, 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 fol- lowing vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and Zarsky voting "Aye"; Turner, absent. ORDINANCE NO. 16413: ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF CORPUS CHRISTI, TEXAS FIRST LIEN WATERWORKS SYSTEM REVENUE BONDS; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance was passed by the following vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and Zarsky voting "Aye"; Turner, absent. RESOLUTION NO. 16414: APPROVING THE FORM OF THE OFFICIAL STATEMENT PERTAINING TO CITY OF CORPUS CHRISTI, TEXAS, FIRST LIEN WATERWORKS SYSTEM REVENUE BONDS, SERIES 1981, AND AUTHORIZING, RATIFYING AND APPROVING THE OFFICIAL STATEMENT AND THE USE THEREOF IN THE OFFERING AND SALE OF SAID BONDS; AND DELCARING AN EMERGENCY. The Charter Rule was suspended and the foregoing resolution was passed by the following vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and Zarsky voting "Aye"; Turner, absent. There being no further business to come before the Council during the Special Meeting, on motion by Gulley, seconded by Dumphy and passed unanimously, the meeting was adjourned et 2:10 p.m., July 22, 1981.