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HomeMy WebLinkAboutMinutes City Council - 05/16/1985 - SpecialMINUTES CITY OF CORPUS CHRISTI, TEXAS SPECIAL COUNCIL MEETING MAY 16, 1985 8:30 A.M. PRESENT: Mayor Luther Jones Mayor Pro Tem Dr. Jack Best Council Members: David Berlanga, Sr. Leo Guerrero Joe McComb Frank Mendez Bill Pruet Mary Pat Slavik Linda Strong City Manager Edward A. Martin City Attorney J. Bruce Aycock City Secretary Armando Chapa Mayor Luther Jones called the meeting to order,_in the Council Chambers of City Hall. City Secretary Armando Chapa called the roll and verified that the necessary quorum of the Council and the required Charter Officers were present to conduct the meeting. Mayor Jones called for consideration of the Waterworks System Refunding Revenue Bond Sale. City Manager Edward Martin reminded the Council that on April 30, 1985, the Staff presented to the Council a concept for a refunding program on the Waterworks Fund in an effort to save the City money in interest payments. He stated that through this method of refunding the revenue bonds, the Staff anticipates a savings of $120,000 annually or a total of $2 million. Mr. Martin then introduced the following who worked with the City to put the issue together: Mr. Jim Seal, M. E. Allison and Company, Inc., Financial Consultants; Mr. Tristan Renz, Smith Barney; Mr. Hobby McCall, McCall, Parkhurst and Horton, Bond Attorneys. Mr. McCall explained that four actions are necessary for the Refunding Reveue Bond Sale. (1) Resolution authorizing the official statement which is the one that authorizes the underwriters to issue that official statement. MICROFILMED 4 411 inutes special Council Meeting May 16, 1985 Page 2 A motion was made by Council Member Guerrero that the Charter provision prohibiting resolutions and ordinances from being adopted on the date introduced be suspended as stated in the emergency clause of the resolutions and ordinances. The motion was seconded by Council Member Mendez and passed unanimously. City Secretary Chapa polled the Council for their vote on the first resolution and it passed as follows: 1. RESOLUTION NO. 18833: APPROVING THE FORM OF THE OFFICIAL STATEMENT PERTAINING TO CITY OF CORPUS CHRISTI, TEXAS WATERWORKS SYSTEM REVENUE REFUNDING BONDS, SERIES 1985, 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 resolution passed by the following vote: Jones, Best, Berlanga, Guerrero, McComb, Mendez, Pruet, Slavik and Strong voting, "Aye". (2) Ordinance authorizing the issuance and sale of the bonds. Mr. McCall explained that this ordinance authorizes the issuance and sale and lists the interest rates, which are very attractive, on pages 3 and 4 of the ordinance. Mr. McCall stated that the ordinance also effects the sale of the bonds to Smith Barney and authorizes the City Manager to enter into a purchase agreement. City Secretary Chapa polled the Council for their vote and the following ordinance was passed: 2. ORDINANCE NO. 18834: ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF CITY OF CORPUS CHRITI, TEXAS WATERWORKS SYSTEM REVENUE REFUNDING BONDS, SERIES 1985. The Charter Rule was suspended and the ordinance passed by the following vote: Jones, Best, Berlanga, Guerrero, McComb, Mendez, Pruet, Slavik and Strong voting, "Aye". (3) Ordinance authorizing an escrow agreement. Mr. McCall explained that this authorizes the City Manager to enter into an escrow agreement with MBank of Corpus Christi. This bank will hold the government bonds that will be purchased as a result of the bond sale. inutes special Council Meeting May 16, 1985 Page 3 Mayor Jones mentioned the fact that he has stock in MBank and possibly should abstain from voting on this ordinance. Mayor Jones then signed an affidavit to this effect to be filed with the City Secretary's Office. City Secretary Chapa polled the Council for their vote and the following ordinance was passed: 3. ORDINANCE NO. 18835: AUTHORIZING AN ESCROW AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI, TEXAS AND MBANK CORPUS CHRISTI, N.A., AS ESCROW AGENT, AND OTHER MATTERS PERTAINING THERETO. The Charter Rule was suspended and the ordinance passed by the following vote: Best, Berlanga, Guerrero, McComb, Mendez, Pruet, Slavik and Strong voting, "Aye"; Jones, abstaining. (4) Consideration of a resolution calling bonds for redemption and taking other actions that are deemed to be appropriate or necessary in the premises. Mr. McCall explained that the notice will be selected by the bond buyer and informed the Council that the publication is read by all of the people who are in this business since it is a national publication. Mr. Tristan Renz stated that they were of the opinion that there would be quite a bit of retail interest in these bonds but about 95% of the bonds were sold to financial institutions, primarily in Texas. City Secretary Chapa polled the Council for their votes on this resolution and the following was passed: 4. RESOLUTION NO. 18836: CALLING CERTAIN BONDS FOR REDEMPTION PRIOR TO SCHEDULED MATURITIES. The Charter Rule was suspended and the ordinance passed by the following vote: Jones, Best, Berlanga, Guerrero, McComb, Mendez, Pruet, Slavik and Strong voting, "Aye". * * * * * * * * Mayor Jones referred to a trip that he and Council Member Berlanga had taken to Austin yesterday and asked Mr. Berlanga to explain the events. inutes special Council Meeting May 16, 1985 Page 4 Council Member Berlanga stated that they went to Austin to witness the signing of the bill by the Governor to create new industrial districts. He stated that the bill was sponsored in the Legislature by Speaker of the House, Hugo Berlanga. He expressed the opinion that this bill will assist the City to do whatever is necessary to promote industry. There being no further business to come before the Council, on motion by Mayor Pro Tem Best, seconded by Council Member Guerrero and passed unanimously, the Special Council Meeting was adjourned at 9:10 a.m., May 16, 1985. DZ/rr