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.