HomeMy WebLinkAboutMinutes City Council - 11/15/1990 - SpecialMINUTES
CITY OF CORPUS CHRISTI, TEXAS
SPECIAL COUNCIL MEETING
NOVEMBER 15, 1990
11:00 A.M.
PRESENT
Mayor Betty Turner
Mayor Pro Tem Edward Martin
Hall.
Council Members:
Cezar Galindo
Leo Guerrero
Tom Hunt
Joe McComb
Clif Moss
Mary Rhodes
Frank Schwing*
City Manager Juan Garza
City Attorney Hal George
City Secretary Armando Chapa
Mayor Betty Turner called the meeting to order in the Council Chambers of City
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 Turner called for consideration of City of Corpus Christi, Texas Utility System
Revenue Refunding Bonds, Series 1990.
City Manager Juan Garza introduced Mr. James Seal and Bill McGee,
representatives of M. E. Allison & Co.; Ruben McDaniels, representative from Dean Witter;
Bob Hull, representative from Texas Commerce Bank; and Jeff Leuschel, representative
from McCall, Parkhurst, & Horton.
Mr. Garza recounted the previous proceedings relative to this issue and emphasized
the benefits which would be realized by the City if the bond refinancing is approved. He
also informed the Council that the net present value cost of refinancing, which is lower than
estimated in October, will be $374,000; that the transfer proceeds penalty will be $61,000;
that the estimated interest rate is 7.11 percent; and that the par value of the bonds being
refunded is $64,070,000 and that the par value of the bonds being sold is $64,660,000.
Mr. Garza recommended approval of the bond sale because it will limit the size of
future wastewater rate increases and also release funds which can be used to implement
federally mandated additions to the sewage -treatment system. He also stated that the
refinancing is part of a plan to consolidate the utilities into one department.
MICROFILMED
Minutes
Special Council Meeting
November 15, 1990
Page 2
In explanation to one of the principal concerns being raised, that the refinancing will
put the City deeper into debt, City Manager Garza commented that the following benefits
would be realized by the City if the bond refinancing is approved: (1) that payment on the
annual debt service, within the next ten years, will be reduced; (2) that it would allow the
City to reduce planned increases in wastewater rates; and (3) that the financial burden for
the required wastewater improvements would be dispersed between the current and future
ratepayer.
City Manager Garza also remarked on another concern that had been raised, that
the bond refunding is a violation of the City Charter. He referred to the opinion of McCall,
Parkhurst, & Horton and cited State law which gives cities the right to refinance without
limitations.
Those arguing against the bond refinancing because it would be in violation of the
City Charter were Council Members Rhodes and Hunt.
Responding to a question posed by Council Member Hunt, Jeff Leuschel, a
representative of McCall, Parkhurst, & Horton, cited State law as it relates to utility caps
and ad valorem tax caps.
Mayor Turner called for comments from the public.
Mr. J. E. O'Brien, 4130 Pompano, and Mr. Jesse Hix, 2622 Segrest, expressed their
opposition to the bond refinancing because it will not be approved by the voters.
Mayor Turner called for consideration of the resolution and ordinance
City Secretary Chapa polled the Council for their votes and the following Ordinance
was passed:
C. ORDINANCE NO. 21024
ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF CITY OF
CORPUS CHRISTI, TEXAS UTILITY SYS I EM REVENUE REFUNDING
BONDS, SERIES 1990, AND DECLARING AN EMERGENCY.
An emergency was declared and the foregoing Ordinance passed by the following
vote: Turner, Martin, Guerrero, Moss, and Schwing voting "Aye"; Galindo, Hunt, McComb,
and Rhodes voting "No."
D. RESOLUTION NO. 21025
CALLING CERTAIN BONDS FOR REDEMPTION PRIOR TO SCHEDULED
MATURITIES.
Minutes
Special Council Meeting
November 15, 1990
Page 3
The foregoing resolution passed by the following vote: Turner, Martin, Guerrero,
McComb, Moss, and Schwing voting "Aye"; Galindo, Hunt, and Rhodes voting "No."
Council Member Rhodes expressed the opinion that the passage of the Ordinance
and Resolution did not constitute illegal action by any of the Council Members.
Mayor Pro Tem Martin provided remarks pertaining to the vote on the Ordinance
and Resolution.
There being no further business to come before the Council, Mayor Turner declared
the meeting adjourned at 11:30 a.m.
I HEREBY CERTIFY that the foregoing is a true and correct copy of the Minutes
of the Special Council Meeting of the City of Corpus Christi of November 15, 1990 which
were approved by the City Council on November 20, 1990.
WITNESSETH MY HAND AND SEAL, this the 7th day of January, 1991.
/cam EA --
Armando Chapa
City Secretary
tty Turne
Mayor