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HomeMy WebLinkAbout15965 ORD - 01/07/1981''f THE STATE OF TEXAS COUNTY,OF NUECES CITY OF CORPUS CHRISTI : On this the 7th day of January, 1981, the City Council of the City of Corpus Christi, Texas convened in Regular Meeting, with the following members of said Council present, to -wit: Luther Jones, Edward L. Sample, Dr. Jack Best, David•Diaz, Jack K. Dumphy, Betty N. Turner, Cliff Zarsky, R. Marvin Townsend, J. Bruce Aycock, Harold F. Zick, Bill G. Read, with the following absent: constituting a quorum, at which business was transacted: Mayor, Mayor Pro -Tem, Councilmen, City Manager, City Attorney, Director of Finance, ' City Secretary, time the following among other Q)7Ly,-1r;.y,,, 4.0.7.u,.4presented for the consideration of the Council an ordinance. The ordinance was read -by the City Secretary. The Mayor presented to the Council a communication in writing pertaining to said proposed ordinance, as follows: "Corpus Christi, Texas January 7 , 1981 "TO THE CITY COUNCIL Corpus Christi, Texas Gentlemen: "The public importance and pressing need for the permanent improvements to be acquired by use of the proceeds of bonds contemplated to be issued pursuant to an ordinance create an emergency and an imperative public necessity requiring the suspension of rules and Charter provisions requiring ordinances to be considered and voted upon at three regular meetings. I, therefore, request that the City Council pass the proposed ordinance authorizing the issuance of bonds as an emergency measure. You will please consider this request in connection with the ordinance which is to be introduced for passage by the City Council on the subject. "Yours very truly, /s/ Luther Jones Mayor" 15965 ell Q ILMED iSgP27 684 Councilman David Diaz moved that the Charter provision prohibiting ordinances from 'being passed finally on the date introduced be suspended for the reasons stated in the written request of the Mayor and stated in the emergency clause of the ordinance. The motion was seconded by Mayor Pro-Tem Edward L. Sample. The motion was carried by a majority vote by the City Council, viz: AYES: Edward L. Sample, David Diaz, Jack K. Dumphy and Cliff Zarsky. NAYS: Dr. Jack Best, Betty N. Turner. The Mayor requested that the records show that he voted Aye. This was done. Councilman David Diaz moved that the ordinance be passed finally. The motion was seconded by Mayor Pro-Tem Edward L. Sample. The motion was carried by the following vote: �. AYES: Edward L. Sample, David Diaz, Jack M. Dumphy and Cliff Zarsky. NAYS: Dr. Jack Best, Betty N. Turner. The Mayor requested that the records show that he voted Aye. This was done. The Mayor announced that the ordinance had been passed. The ordinance is as follows: ORDINANCE NO. �'55 BY TEE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, PROVIDING FOR THE ISSUANCE OF $440,000 CITY OF CORPUS CHRISTI, TEXAS, GOLF CENTER REVENUE BONDS, SERIES 1981; PROVIDING THAT SUCH BONDS WILL BE PAYABLE FROM AND SECURED BY REVENUES; PRESCRIBING THE FORM OF SAID BONDS; AND ORDAINING OTHER MATTERS RELATING TO THE SUBJECT WHEREAS, the City of Corpus Christi is authorized by Articles 1269j-4.1, V.A.C.S. to issue and secure the payment of bonds herein authorized by and from the Pledged Revenues as hereinafter defined; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Section 1. AUTHORIZATION OF BONDS. That %aid City's revenue bonds, to be designated the "City of Corpus Christi, Texas, Golf Center Revenue Bonds, Series 1981",.are hereby author ized to be issued and delivered in the principal amount of $440,000 for the purpose of acquiring a golf course. Section 2. DATE, DENOMINATION, MATURITIES. That said bonds shall be dated February 1, 1981, shall be in the denomination of $1,000 each, shall be numbered consecutively from 1 through 440, and shall mature serially on February 1 in each of the years, and in the amounts, respectively, as set forth in the following schedule: YEARS AMOUNTS YEARS AMOUNTS 1982$ 44,000 1987 $ 44,000 1983 44,000 1988 44,000 1984 44,000 1989 44,000 1985 44,000 1990 44,000 1986 44,000 1991 44,000 Section 3. INTEREST. That the bonds shall bear interest from their date until maturity at the rate of 6% per annum, with said interest to be evidenced by interest coupons payable on August 1, 1981, and semiannually thereafter on each February 1 and August 1. - Section 4. PLACE OF PAYMENT. That the principal of and interest on said bonds shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presenta- tion and surrender of proper bond or interest coupon, at Corpus Christi National Bank, Corpus Christi, Texas, which place shall be the paying agent for said bonds. Section 5. FORM OF BONDS, COMPTROLLER'S CERTIFICATE AND INTEREST COUPON. That the form of said bonds, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each of said bonds, and the form of the aforesaid• interest coupons which shall appertain and be attached ini- tially to each of said bonds shall be, respectively, substan- tially as follows: NO. FORM OF BOND UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI, TEXAS, GOLF CENTER REVENUE BOND SERIES 1981 $1,000 On February 1, 19_, the City of Corpus Christi, in the County of Nueces, State of Texas, promises to pay to bearer the principal amount of ONE THOUSAND DOLLARS and to pay interest thereon, from the date hereof, at the rate of 6% per annum, evidenced by interest coupons payable August 1, 1981, and semiannually thereafter on each February 1 and August 1 while this bond is outstanding. The principal of this bond and the interest coupons appertaining hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this bond or proper interest coupon at the Corpus Christi National Bank, Corpus Christi, Texas, which place shall be the paying agent for this series of bonds. 2 This bond is one of a series of bonds dated February 1, 1981, issued in the principal amount of $440,000 for the purpose of acquiring a golf course. It is hereby certified, recited and covenanted that this bond has been duly and validly issued and delivered; that all acts, conditions and things required or proper to be performed, exist and be done precedent to or in the authorization, issuance and delivery of this bond have been performed, existed and been done 'in accordance with law; that this bond is a special obligation of said City, payable from and secured by a first lien on and pledge of the Pledged Revenues as described and defined in the ordinance authorizing this bond. In witness whereof, this bond and the interest coupons appertaining hereto have been signed with the facsimile signature of the Mayor of said City and countersigned with the facsimile signature of the City Secretary of said City, and the official seal of said City has been duly impressed, or placed in facsimile on this bond. City Secretary, City of Mayor, City of Corpus Christi Corpus Christi FORM OF REGISTRATION CERTIFICATE COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this bond has been examined, certified as to validity, and approved by the Attorney General of the State of Texas, and that this bond .;as been registered -by the Comptroller of Public Accounts of the State of Texas. Witness my signature and seal this NO. Comptroller of Public Accounts of the State of Texas FORM OF INTEREST COUPON ON , 19 3 The City of Corpus Christi, in the County of Nueces, State of Texas,promises to pay to bearer the amount shown on this interest coupon, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this interest coupon, at the Corpus Christi National Bank, Corpus Christi, Texas, said amount being interest due that day on the bond, bearing the number hereinafter designated, of that issue of City of Corpus Christi, Texas, Golf Center Revenue Bonds, Series 1981, dated February 1, 1981. Bond No. City Secretary - Mayor - Section 6. DEFINITIONS. That the terms defined in this Section for all purposes of this Ordinance, except where the context by clear implication shall otherwise require, shall have the respective meanings as follows, to -wit: (a) The term "Bonds" shall mean the City of Corpus Christi, Texas, Golf Center Revenue Bonds, Series 1981, authorized to be issued and delivered by this Ordinance. (b) The term "Golf Center" shall mean the golf course and all buildings, improvements, leasehold rights, equipment and other facilities being acquired with the proceeds of the Bonds, known as the Corpus Christi Golf Center (located on land which is particularly described in a lease dated January 31, 1963, recorded in Volume 995, pages 390-407 of the Deed Records of Nueces County, Texas), together with all improvements, extensions, enlargements and additions thereto and replacements thereof hereafter made. (c) The term "Pledged Revenues", as used in this Ordinance, shall mean the gross revenues received from the ownership or operation of the Golf Center. 'Section 7. PLEDGE. The bonds shall be secured by and payable from a first lien on and pledge of the Pledged Revenues, and such lien and pledge are hereby irrevocably established and made. So long as any of the Bonds remain 4 outstanding, the City will not issue any additional bonds of equal or superior dignity payable from the revenues herein pledged. Section 8. PLEDGED REVENUES. All Pledged Revenues shall be collected and held in the City's depository bank for the uses herein prescribed. The Pledged Revenues shall be deposited into the Interest and Sinking Fund to the extent and in the amounts provided hereunder. Section 9. INTEREST AND SINKING FUND. The City of Corpus Christi,•Texas,Golf Center Revenue Bonds, Series 1981 Interest and Sinking Fund, hereinafter called the "Interest and Sinking Fund" is hereby created and shall be established and maintained in a depository bank of the City, so long as the Bonds, or interest thereon, are outstanding and unpaid. Section 10. USE OF INTEREST AND SINKING FUND. On or before the 5th day of the first month to occur following the date of delivery of the Bonds to the purchasers thereof and on or before the 5th day of each following month thereafter so long as any of the Bonds remains outstanding, there shall be deposited in the Interest and Sinking Fund an equal amount of money from Pledged Revenues, with such deposits totaling, together with other amounts in the Interest and Sinking Fund, not less than the amount of the installment of interest coming due on the Bonds on the next succeeding interest payment date, and the amount of principal, if any, maturing during the succeeding twelve months. The Interest and Sinking Fund shall be used to pay the principal of and interest on the Bonds as such principal matures and such interest comes due. Section 11. PAYMENT. On or before the first day of August, 1981 and on or before the first day of each February and each August thereafter while any of the Bonds or interest thereon are outstanding and unpaid, the City shall make available to the Paying Agent from monies in the Interest and Sinking Fund the interest coming due on each such date and the principal of the Bonds maturing, if. any, on each such date. • 5 Section 12. RATES. The City covenants and agrees with the holders of the Bonds that it will at all times levy and collect gross revenues received from the ownership or opera- tion of the Golf Center as will be at least sufficient to, provide Pledged Revenues which will be adequate to pay promptly all of the principal of and interest on the Bonds, and -to make all deposits now or hereafter required to be made into the Interest and Sinking Fund created and established by this Ordinance. Section 13. EXCESS REVENUES. The Pledged Revenues in excess of those required for deposits pursuant to this Ordinance shall be used to pay the costs of operating and maintaining the Golf Center, and to the extent not so required, for any lawful purpose. Section 14. SECURITY FOR FUNDS. All Funds created by this Ordinance shall be secured in the manner and to the fullest extent permitted or required by law for the security of public funds, and such Funds shall be used only for the purposes and in the manner permitted or required by this Ordinance. Section 15. SPECIAL COVENANTS. It is hereby covenanted and agreed by the City that while any part of the principal or interest of said issue of Bonds is outstanding and unpaid: (a) It will faithfully perform at all times any and all covenants, undertakings, stipulations and provision contained in this Ordinance and in each and every Bond exe- cuted and delivered hereunder, that it will promptly pay or cause to be paid'from the revenues herein pledged the prin- cipal of and interest on every Bond issued hereunder, on the dates and at the places and manner prescribed in such Bond, and that it will, at the times and in the manner prescribed herein, deposit or cause to be deposited, from the revenues pledged, the amounts of money specified herein. All Bonds or coupons, when paid, shall be cancelled by the paying agent and shall be delivered to or upon the order of the City. 6 (b) It is duly authorized under the laws of the State of Texas to create and issue the Bonds; that all action on its part for the creation and issuance of the Bonds has been duly,' lawfully and effectively taken, and that the Bonds in the hands of the holders and owners thereof will be valid and enforceable special obligations of the City in accordance with their terms and the terms of this Ordinance. (c) It lawfully owns and is lawfully possessed of the land upon which the Golf Center is located and it has a good and indefeasible estate in such land in fee simple; it warrants that it has, and will defend, the title to the said land and every part thereof and improvements thereon, for the benefit of the holders and owners of the Bonds against the claims and demands of all persons whomsoever; it is lawfully qualified to pledge the revenues herein pledged in the manner prescribed herein, and has lawfully exercised such right. (d) It will from time to time, and before the same become delinquent, pay and discharge all taxes, assessments and governmental charges, if any, which shall be lawfully imposed upon it, or upon the Golf Center, that it will pay all lawful claims for rents, royalties, labor, materials and supplies which, if unpaid, might by law become a lien or charge upon the Golf Center, or any pert of same, the lien of which would be prior to or interfere with the lien hereof, so that the priority of the lien granted hereunder shall be fully preserved in the manner provided herein, and that it will not create or suffer to be created any mechanic's, laborer's, materialman's or other lien or charge which might or could be prior to the lien hereof, or do or suffer any matter or thing whereby the'lien hereof might or could be impaired; provided, however, that no such tax, assessment or charge, and that no such claim which might be used as the basis of a mechanic's, laborer's, materialman's or other lien or charge, shall be required to be paid so long as the validity of the same shall be contested in good faith by the City. 7 (e) It will not do or suffer any act or thing whereby the Golf Center, or any part thereof, might or could be impaired, and that it will at all times maintain, preserve and keep the real and tangible property of said facilities and every part thereof in good condition, repair and working order and maintain, preserve and keep all structures and equipment pertaining thereto and every part and parcel thereof in good condition, repair and working order. (f) That it will continuously and efficiently operate and maintain in good condition and at a reasonable cost the Golf Center and the facilities and services offered by same. (g) (1) With respect to the Golf Center, the City shall procure fire and extended coverage insurance on such buildings and the contents thereof. The foregoing fire and extended coverage insurance shall be maintained so long as any of the Bonds is outstanding and such fire and extended coverage insurance shall be in amounts at least sufficient to provide for full recovery on each building and the contents thereof whenever a loss from perils insured against does not exceed eighty per cent (80%) of the full insurable value thereof. (2) Upon the happening of any loss or damage covered by any such policies from one or more of the causes to which reference is made in this Section, the City shall make due proof of loss and shall do all things necessary or desirable to cause the insuring companies to make payment in full directly to the City. (3) The proceeds of insurance, covering such property, shall be used forthwith by the City for the purpose of repairing the property damaged or replacing the property destroyed, and any insurance proceeds remaining upon the completion of such repair or replacement shall be deposited in the Interest and Sinking Fund. (h) That it shall cause to be kept proper books, records and accounts (separate and apart from all other records and accounts) in which complete and correct entries 8 shall be made of all transactions 'relating to the Golf Center and the facilities and services afforded thereby; and that the City shall furnish to any holder of any of the Bonds, at written request of such holder, not less than thirty (30) days after the close of each fiscal year, complete operating and income statements of the'Golf Center in reason- able detail covering such period, together with a certificate signed by the City's senior financial officer stating that the City has complied with the requirements of this paragraph of this Ordinance. (i) That any holder or holders of twenty-five (25%) per centum in aggregate amount of the Bonds at the time then outstanding, shall have the right at, all reasonable times to inspect the Golf Center and all records, accounts and data of the City relating thereto. Section 16. SALE OE BONDS. That the City of Corpus Christi, Texas, Golf Center Revenue Bonds, Series 1981, aggregating $440,000, are hereby sold and shall be delivered to Newcortex, Inc., Corpus Christi, Texas, for the principal amount thereof, with, -_ accrued interest thereon to date of delivery. Section 17. APPROVAL AND REGISTRATION OE BONDS. That the City Manager of said City is hereby authorized to have control of said Bonds and all necessary records and proceed- ings pertaining to said Bonds pending their delivery and their investigation, examination and approval by the Attorney General of the State of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of said Bonds, said Comptroller of Public Ac- counts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registra- tion Certificate printed and endorsed on each of said Bonds, and the seal of said Comptroller shall be impressed, or placed in facsimile, on each of said Bonds. Section 18. ARBITRAGE. That the City covenants to and with the purchasers of the Bonds that it will make no use of the proceeds of the Bonds at any time throughout the•term of i this issue of bonds which, if such use had been reasonably expected on the date of delivery of the Bonds to and -payment for the Bonds by the purchasers, would have caused the Bonds to be arbitrage bonds within the meaning of Section 103(c) f the Internal Revenue Code of 1954, as amended, or any regulations, or rulings pertaining thereto; and by this covenant the City is obligated to comply with the requirements f the aforesaid Section 103(c) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. The City further covenants that the proceeds of the Bonds will not otherwise be used directly or indirectly so as to cause all or any part of the Bonds to be or become arbitrage bonds within the meaning of the aforesaid Section 103(c), or any regulations or rulings pertaining thereto. Section 19. DECLARATION OF EMERGENCY. The fact that the contemplated use of the proceeds of the Bonds is necessary for the orderly development and growth of the recreation facilities of the City of Corpus Christi, Texas, createsla public emergency and an imperative public necessity requiring the suspension of the Charter Rule providing that no ordinance or resolution shall be passed finally on the date it is introduced and that such ordinance or resolution shall be read at three several meetings of the City Council and the Mayor having declared that such public emergency and imperative necessity exist, and having requested that said Charter Rule be suspended and this ordinance take effect and be in full force and effect from and after its passage, it is accordingly so ordained. Section 20. REPEAL. That all ordinances and resolutions or parts thereof in conflict herewith are hereby repealed. PASSED AND APPROVED this h� 1,. ay of January, 1981. ATTEST: 1�la�or, City of Corpus Christi, Texas APPROVED: January 7, 1981 J. BRUCE Y•OCK CITY ATTORNEY City Secretary, City of Corpus By Christi, Texas Assj4tant City Attorney 10 rift STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI I, the undersigned, City Secretary of the City of Corpus Christi, Texas, do hereby certify that the above and foregoing is a true, full and correct copy of an Ordinance passed by the City Council of the City of Corpus Christi, Texas (and of the 'minutes pertaining thereto) on the 7th day of January, 1981, authorizing the issuance of $440,000 City of Corpus Christi, Texas, Golf Center Revenue Bonds, Series 1981, which ordinance is duly of record in the minutes of said City Council, and said meeting was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Vernon's. Ann. Civ. Stat., article 6252-17, as amended. EXECUTED UNDER MY HAND AND SEAL of said City, this the day of January, 1981. City Secretary, "City of Corpus Christi, Texas Corpus Christi, Texas 11'Sday of Jaron , 19 f l TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance, a public emergency and imperative necessity exist for the suspension of the Charter rule or requirement that no ordinance or resolution shall be passed finally on the date it is introduced, and that such ordinance or resolution shall be read at three meetings of the City Council; I, therefore, request that you suspend said Charter rule or requirement and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, OR THE CITY OF CORPUS CHRISTI, TEXAS The Charter rule was suspended Luther Jones Edward L. Sample Dr. Jack Best David Diaz Jack K. Dumphy Betty N. Turner Cliff Zarsky The above ordinance was Luther Jones Edward L. Sample Dr. Jack Best David Diaz .Jack K. Dumphy Betty N. Turner Cliff Zarsky by the following vote: passed by the following vote: 15965