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.
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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.
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special Council Meeting
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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.
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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.
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