Loading...
HomeMy WebLinkAbout19547 ORD - 11/18/1986ORDINANCE BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, PROVIDING FOR THE ISSUANCE OF $25,625,000 CITY OF CORPUS CHRISTI, TEXAS GENERAL IMPROVEMENT BONDS, SERIES 1986, 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 MATUR- ITY; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND DECLARING AN EMERGENCY WHEREAS, it is deemed advisable and to the best inter- est of the City that bonds authorized at an election held in said City on April 5, 1986 be sold at this time, with the amounts of bonds authorized thereat, purposes, and the amount now to be sold being as follows: AMOUNT AMT.NOW AUTHORIZED PURPOSE OFFERED $ 15,890,000 Wastewater Impr. $10,580,000 5,560,000 Drainage & Storm Sewer Imp. 2,300,000 4,000,000 Aquarium 1,300,000 9,900,000 Public Health & Safety 800,000 4,785,000 Airport 910,000 14,875,000 Parks & Recreation 3,015,000 49,935,000 Street Impr. 6,720;000 $104,945,000 $25,625,000 WHEREAS, it is hereby officially found and determined: that a case of emergency or urgent public necessity exists which requires the holding of the meeting at which this Ordinance is passed, such emergency or public necessity being that the proceeds from the proposed bonds are required as soon as possible and without .delay for necessary and j954? MICROFILMED urgently needed public improvements; that this meeting was open to the public as required by law; and that public notice of the time, place and purpose of this meeting was given as required by Vernon's Ann. Civ. St. Article 6252-17, as amended. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: 1. That said City's bonds to be designated the "City of Corpus Christi, Texas General Improvement Bonds, Series 1986" are hereby authorized to be issued and delivered in accordance with the Constitution and the laws of the State of Texas in the principal amount of $25,625,000 for the purpose of providing $10,580,000 for wastewater improve- ments, including: Westside Plant Expansion; Sewer Main Rehabilitation: West Allison Trunk Sanitary Sewer Number 2; South Side Treatment Plant Land Acquisition; and other wastewater improvements; $2,300,000 for constructing drain- age and storm sewer improvements including Turkey Creek; Mary Carroll Channel; Richter Channel Widening; Joint City/State projects; Flour Bluff and Clarkwood; Baldwin Farms Area Drainage Outfall at South Padre Island Drive; McKenzie Road -Leopard Area; and other drainage and storm sewer improvements; $1,300,000 for permanent improvements for an aquarium, to -wit: land acquisition, parking and reconstructing and installing water and sewer lines and storm drainage and bulkheading and other cultural 2 enhancements; $800,000 for permanent improvements for the public health and safety, to -wit: building and equipping additional fire stations and a new police and municipal court facility; expand Williams Drive Clinic, including land acquisition; a public safety radio communication system; a municipal service center; and related permanent improve- ments; $910,000 for constructing airport improvements at the City's international airport, including taxiway.rehab- ilitation for runways 12-31 and 17-35; repairs/grooving runway 17-35; concourse extension/gate; extension of commer- cial apron; and other airport improvements; $3,015,000 for improving lands for park and recreation facilities, includ- ing various neighborhood parks; seawall and T -head improve- ments; renovation and expansion of existing recreation facilities; development of unimproved park land (existing acreage); and other park improvements; and $6,720,000 for improving the streets of the City including Waldron Road, from Compton Road to Purdue Road, including drainage im- provements; McArdle Road from Ayers Street to Carroll Lane and from Carroll Lane to Everhart Road; Ayers Street from Santa Fe to Norton Street; Agnes Street from Port Avenue to Airport Road; Whitecap Avenue; Greenwood Drive from South Padre Island Drive to Saratoga Boulevard; - neighborhood street improvements; joint City/State projects; and other street and sidewalk improvements. 3 2. That said bonds shall have the initial date of December 1, 1986, shall be in the denomination of $5,000 or any integral multiple thereof, numbered consecutively from 1 upward, and shall mature and become due and payable on November 1 in each of the years, and in the amounts, respec- tively, as set forth in the following schedule: YEAR AMOUNTS YEARS AMOUNTS 1987 $ 600,000 1997 $1,000,000 1988 600,000 1998 1,000,000 1989 625,000 1999 1,875,000 1990 900,000 2000 1,875,000 1991 900,000 2001 1,875,000 1992 1,000,000 2002 1,875,000 1993 1,000,000 2003 1,875,000 1994 1,000,000 2004 1,875,000 1995 1,000,000 2005 1,875,000 1996 1,000,000 2006 1,875,000 3. That as to said bonds scheduled to mature on and after November 1, 1997, said City shall have the right and option to redeem such bonds prior to their scheduled maturi- ties, in whole or in part, on November 1, 1996, or on any interest payment date thereafter, for the principal amount thereof plus accrued interest to the date fixed for redemp- tion. At least thirty (30) days prior to the date any such Bonds are to be redeemed, a written notice of redemption shall be given to the registered owner of each Bond or a portion thereof being called for redemption by depositing such notice in the United States mail, postage prepaid, addressed to each such registered owner at his address shown on the registration books of the Paying Agent/Registrar 4 (hereinafter defined). By the date fixed for any such redemption due provision shall be made by the City with the Paying Agent/Registrar for the payment of the required redemption price for the Bonds or the portions thereof which are to be so redeemed, plus accrued interest thereon to the date fixed for redemption. If such notice of redemption is given, and if due provision for such payment is made, all as provided above, the Bonds, or the portions thereof which are to be so redeemed, thereby automatically shall be redeemed prior to their scheduled maturities, and shall not bear interest after the date fixed for their redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the redemption price plus accrued interest to the date fixed for redemption from the Paying Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall record in the Registration Books all such redemptions of principal of the Bonds or any portion thereof. If a portion of any Bond shall be redeemed a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the registered owner, and in an aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the City, all as provided in this Ordinance. 5 4. That said bonds shall bear interest, until maturity or redemption, at the following rates per annum: Bonds maturing 1987 % Bonds maturing 1997 % Bonds maturing 1988 % Bonds maturing 1998 % Bonds maturing 1989 % Bonds maturing 1999 8 Bonds maturing 1990 % Bonds maturing 2000 % Bonds maturing 1991 % Bonds maturing 2001 % Bonds maturing 1992 % Bonds maturing 2002 8 Bonds maturing 1993 % Bonds maturing 2003 % Bonds maturing 1994 % Bonds maturing 2004 % Bonds maturing 1995 % Bonds maturing 2005 8 Bonds maturing 1996 % Bonds maturing 2006 % payable May 1, 1987, and semiannually thereafter on November 1 and May 1 of each year. Said interest shall be payable to the registered owner of any such Bond in the manner provided in the FORM OF BOND set forth in this Ordinance. 5. Paying Agent/Registrar. (a) The City shall keep or cause to be kept at the principal corporate trust office of First City Bank of Corpus Christi, Corpus Christi, Texas, or such other bank or trust company named in accordance with the provisions of (g) of this Section hereof (the "Paying Agent/Registrar") books or records of the registration and transfer of the Bonds (the "Registration Books"), and the City hereby appoints the Paying Agent/Registrar as its registrar and transfer agent to keep such books or records and make such transfers and registrations under such reason- able regulations as the City and Paying Agent/Registrar may prescribe; and the Paying Agent/Registrar shall make such transfers and registrations as herein provided. It shall be the duty of the Paying Agent/Registrar to obtain from the registered owner and record in the Registration Books the 6 address of such registered owner of each bond to which payments with respect to the Bonds shall be mailed, as herein provided. The City or its designee shall have the right to inspect the Registration Books during regular business hours of the Paying Agent/Registrar, but otherwise the Paying Agent/Registrar shall keep the Registration Books confidential and, unless otherwise required by law, shall not permit their inspection by any other entity. Registra- tion of each Bond may be transferred in the Registration Books only upon presentation and surrender of such bond to the Paying Agent/Registrar for transfer of registration and cancellation, together with proper written instruments of assignment, in form and with guarantee of signatures satis- factory to the Paying Agent/Registrar, evidencing the assignment of the bond, or any portion thereof in any integral multiple of $5,000, to the assignee or assignees thereof, and the right of such assignee or assignees to have the bond or any such portion thereof registered in the name of such assignee or assignees. Upon the assignment and transfer of any Bond or any portion thereof, a new substi- tute bond or bonds shall be issued in conversion and ex- change therefor in the manner herein provided. (b) The entity in whose name any Bond shall be registered in the Registration Books at any time shall be treated as the absolute owner thereof for all purposes of this Ordinance, whether or not such bond shall be overdue, 7 and the City and the Paying Agent/Registrar shall not be affected by any notice to the contrary unless otherwise required by law; and payment of, or on account of, the principal of, premium, if any, and interest on any such bond shall be made only to such registered owner. All such payments shall be valid and effectual to satisfy and discharge the liability upon such bond to the extent of the sum or sums so paid. (c) The City hereby further appoints the Paying Agent/Registrar to act as the paying agent for paying the principal of and interest on the Bonds, and to act as its agent to convert and exchange or replace Bonds, all as provided in this Ordinance. The Paying Agent/Registrar shall keep proper records of all payments made by the City and the Paying Agent/Registrar with respect to the Bonds, and of all conversions and exchanges of such bonds, and all replacements of such bonds, as provided in this Ordinance. (d) Each Bond may be converted into and exchanged for fully registered bonds in the manner set forth herein. Each bond issued and delivered pursuant to this Ordinance, to the extent of the unpaid or unredeemed principal balance or principal amount thereof, may, upon surrender of such bond at the principal corporate trust office of the Paying Agent/Registrar, together with a written request therefor duly executed by the registered owner or the assignee or assignees thereof, or its or their duly authorized attorneys 8 or representatives, with guarantee of signatures satis- factory to the Paying Agent/Registrar, at the option of the registered owner or such assignee or assignees, as appro- priate, be converted into and exchanged for fully registered bonds, without interest coupons, in the form prescribed in the FORM OF BOND set forth in this Ordinance, in the denom- ination of $5,000, or any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute Bond shall have a single stated maturity date), as requested in writing by such registered owner or such assignee or assignees, in an aggregate principal amount equal to the unpaid or unredeemed principal amount of any bond or bonds so surrendered, and payable to the appropriate registered owner, assignee, or assignees, as the case may be. If a portion of any Bond shall be redeemed prior to its scheduled maturity as provided herein, a substitute bond or bonds having the same maturity date, bearing interest at the same rate, in the denomination or denominations of any integral multiple of $5,000 at the request of the registered owner, and in an aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon surrender thereof for cancellation. If any Bond or portion thereof is assigned and transferred or converted, each bond issued in exchange therefor shall have the same principal maturity date and bear interest at the same rate as the bond for which it is being exchanged. Each 9 substitute bond shall bear a letter and/or number to distin- guish it from each other bond. The Paying Agent/Registrar shall convert and exchange or replace Bonds as provided herein, and each fully registered bond delivered in conver- sion of and exchange for or replacement of any bond or portion thereof as permitted or required by any provision of this Ordinance shall constitute one of the Bonds for all purposes of this Ordinance, and may again be converted and exchanged or replaced. It is specifically provided, how- ever, that any bond delivered in conversion of and exchange for or replacement of another bond prior to the first scheduled interest payment date on the Bonds (as stated on the face thereof) shall be dated the same date as such bond, but each substitute bond so delivered on or after such first scheduled interest payment date shall be dated as of the interest payment date preceding the date on which such substitute bond is delivered, unless such bond is delivered on an interest payment date, in which case it shall be dated as of such date of delivery; provided, however, that if at the time of delivery of any substitute bond the interest on the bond for which it is being exchanged has not been paid, then such bond shall be dated as of the date to which such interest has been paid in full. On each substitute bond issued in conversion of and exchange for or replacement of any bond or bonds issued under this Ordinance there shall be 10 printed thereon a Paying Agent/Registrar's Authentication Certificate, in the form hereinafter set forth. An author- ized representative of the Paying Agent/Registrar shall, before the delivery of any such bond, date such by dating the Authentication Certificate in the manner set forth above, and manually sign such Certificate, and no such bond shall be deemed to be issued or outstanding unless such Certificate is so executed. The Paying Agent/Registrar promptly shall cancel all Bonds surrendered for conversion and exchange or replacement. No additional ordinances, orders, or resolutions need be passed or adopted by the City Council or any other body or person so as to accomplish the foregoing conversion and exchange or replacement of any Bond or portion thereof, and the Paying Agent/Registrar shall provide for the printing, execution, and delivery of the substitute bonds in the manner prescribed herein, and said bonds shall be of type composition printed on paper with lithographed or steel engraved borders of customary weight and strength. Pursuant to Article 717k-6, V.A.T.C.S., and particularly Section 6 thereof, the duty of conversion and exchange or replacement of bonds as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution of the above Paying Agent/Registrar's Authen- tication Certificate, the converted and exchanged or re- placed Bond shall be valid, incontestable, and enforceable in the same manner and with the same effect as the Bonds 11 which originally were delivered pursuant to this Ordinance, approved by the Attorney General, and registered by the Comptroller of Public Accounts. Neither the City nor the Paying Agent/Registrar shall be required (1) to make any assignment, transfer, conversion or exchange during a period beginning at the opening of business 30 days before the day of the first mailing of a notice of redemption of Bonds and ending at the close of business on the day of such mailing, or (2) to assign, transfer, convert or exchange any Bond after it is selected for redemption, in whole or in part. (e) All Bonds issued in conversion and exchange or replacement of any other Bond or portion thereof, (i) shall be issued in fully registered form, without interest cou- pons, with the principal of and interest on such bonds to be payable only to the registered owners thereof, (ii) may be redeemed prior to their scheduled maturities, (iii) may be transferred and assigned, (iv) may be converted and ex- changed for other Bonds, (v) shall have the characteristics, (vi) shall be signed and sealed, and (vii) the principal of and interest on the Bonds shall be payable, all as provided, and in the manner required or indicated, in the FORM OF BOND set forth in this Ordinance. (f) The City shall pay the Paying Agent/Registrar's reasonable and customary fees and charges for making trans- fers of Bonds, but the registered owner of any Bond request- ing such transfer shall pay any taxes or other governmental 12 charges required to be paid with respect thereto. The registered owner of any Bond requesting any conversion and exchange shall pay the Paying Agent/Registrar's reasonable and standard or customary fees and charges for converting and exchanging any such bond or portion thereof, together with any taxes or governmental charges required to be paid with respect thereto, all as a condition precedent to the exercise of such privilege of conversion and exchange, except, however, that in the case of the conversion and exchange of an assigned and transferred bond or bonds or any portion or portions thereof in any integral multiple of $5,000, and in the case of the conversion and exchange of a portion the unredeemed portion of a Bond which has been redeemed in part prior to maturity, as provided in this Ordinance, such fees and charges will be paid by the City. In addition, the City hereby covenants with the registered owners of the Bonds that it will (i) pay the reasonable and standard or customary fees and charges of the Paying Agent/ Registrar for its services with respect to the payment of the principal of and interest on the Bonds, when due, and (ii) pay the fees and charges of the Paying Agent/Registrar for services with respect to the transfer or registration of Bonds, and with respect to the conversion and exchange of Bonds solely to the extent above provided. (g) The City covenants with the registered owners of the Bonds that at all times while the Bonds are outstanding 13 the City will provide a competent and legally qualified bank or trust company to act as and perform the services of Paying Agent/Registrar for the Bonds under this Ordinance, and that the Paying Agent/Registrar will be one entity. The City reserves the right to, and may, at its option, change the Paying Agent/Registrar upon not less than 60 days writ- ten notice to the Paying Agent/Registrar. In the event that the entity at any time acting as Paying Agent/Registrar (or its successor by merger, acquisition, or other method) should resign or otherwise cease to act as such, the City covenants that promptly it will appoint a competent and legally qualified national or state banking institution which shall be a corporation organized and doing business under the laws of the United States of America or of any state, authorized under such laws to exercise trust powers, subject to supervision or examination by federal or state Authority, and whose qualifications substantially are similar to the previous Paying Agent/Registrar to act as Paying Agent/Registrar under this Ordinance. Upon any change in the Paying Agent/Registrar, the previous Paying Agent/Registrar promptly shall transfer and deliver the Registration Books (or a copy thereof), along with all other pertinent books and records relating to the Bonds, to the new Paying Agent/Registrar designated and appointed by the City. Upon any change in the Paying Agent/Registrar, the City promptly will cause a written notice thereof to be sent 14 by the new Paying Agent/Registrar to each registered owner of the Bonds, by United States Mail, postage prepaid, which notice also shall give the address of the new Paying Agent/ Registrar. By accepting the position and performing as such, each Paying Agent/Registrar shall be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this Ordinance shall be delivered to each Paying Agent/Registrar. 6. That each of said bonds shall be signed by the im- printed or lithographed facsimile signature of the Mayor of said City and countersigned by the imprinted or lithographed facsimile signature of the City Secretary of said City, and the official seal of said City shall be impressed, or printed, or lithographed on each of said bonds. 7. Form of Bond. The form of all Bonds, including the form of the Paying Agent/Registrar's Certificate, the Form of Assignment, and the form of the Comptroller's Registra- tion Certificate to accompany the Bonds on the initial delivery thereof, shall be, respectively, substantially as follows, with such appropriate variations, omissions, or insertions as are permitted or required by this Ordinance: 15 FORM OF BOND: NO. $ UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI, TEXAS GENERAL IMPROVEMENT BOND SERIES 1986 MATURITY DATE INTEREST RATE ORIGINAL ISSUE DATE CUSIP December 1, 1986 ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF CORPUS CHRISTI, TEXAS (the "City"), hereby promises to pay to , or to the registered assignee hereof (either being hereinafter called the "registered owner") the principal amount of and to pay interest thereon, from the original issue date of this Bond specified above, to the date of its scheduled maturity or the date of its redemption prior to scheduled maturity, at the rate of interest per annum specified above, with said interest being payable on May 1, 1987, and semi- annually on each November 1 and May 1 thereafter, except that if the Paying Agent/Registrar's Authentication Certif- icate appearing on the face of this Bond is dated later than May 1, 1987, such interest is payable semiannually on each November 1 and May 1 following such date. THE TERMS AND PROVISIONS of this Bond are continued on the reverse side hereof and shall for all purposes have the same effect as though fully set forth at this place. 16 *THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The principal of this Bond shall be paid to the registered owner hereof upon presenta- tion and surrender of this Bond at maturity or upon the date fixed for its redemption prior to maturity, at the principal corporate trust office of First City Bank of Corpus Christi, Corpus Christi, Texas, which is the "Paying Agent/Registrar" for this Bond. The payment of interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof as shown by the Registration Books kept by the Paying Agent/Registrar at the close of business on the first day of the month of such interest payment date by check drawn by the Paying Agent/Registrar on, and payable solely from, funds of the City required to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such check shall be sent by the Paying Agent/Registrar by United States mail, postage prepaid, on each such interest payment date, to the registered owner hereof at its address as it appears on the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. The City covenants with the registered owner of this Bond that no later than each principal payment date and interest payment date for this Bond it will make available to the Paying Agent/Registrar the amounts required to provide for the payment, in immediately available funds, of 17 all principal of and interest on the Bonds, when due, in the manner set forth in the ordinance authorizing the issuance of the bonds (the "Ordinance"). *IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. *THIS BOND is one of a Series of bonds of like tenor and effect except as to number, maturity, interest rate and right of prior redemption, issued in the aggregate principal amount of $25,625,000 for the purpose of providing $10,580,000 for wastewater improvements, including: West- side Plant Expansion; Sewer Main Rehabilitation: West Allison Trunk Sanitary Sewer Number 2; South Side Treatment Plant Land Acquisition; and other wastewater improvements; $2,300,000 for constructing drainage and storm sewer im- provements including Turkey Creek; Mary Carroll Channel; Richter Channel Widening; Joint City/State projects; Flour Bluff and Clarkwood; Baldwin Farms Area Drainage Outfall at South Padre Island Drive; McKenzie Road -Leopard Area; and 18 other drainage and storm sewer improvements; $1,300,000 for permanent improvements for an aquarium, to-wit: land acquisition, parking and reconstructing and installing water and sewer lines and storm drainage and bulkheading and other cultural enhancements; $800,000 for permanent improvements for the public health and safety, to-wit: building and equipping additional fire stations and a new police and municipal court facility; expand Williams Drive Clinic, including land acquisition; a public safety radio communi- cation system; a municipal service center; and related permanent improvements; $910,000 for constructing airport improvements at the City's international airport, including taxiway rehabilitation for runways 12-31 and 17-35; repairs/ grooving runway 17-35; concourse extension/gate; extension of commercial apron; and other airport improvements; $3,015,000 for improving lands for park and recreation facilities, including various neighborhood parks; seawall and T-head improvements; renovation and expansion of exist- ing recreation facilities; development of unimproved park land (existing acreage); and other park improvements; and $6,720,000 for improving the streets of the City including Waldron Road, from Compton Road to Purdue Road, including drainage improvements; McArdle Road from Ayers Street to Carroll Lane and from Carroll Lane to Everhart Road; Ayers Street from Santa Fe to Norton Street; Agnes Street from Port Avenue to Airport Road; Whitecap Avenue; Greenwood 19 Drive from South Padre Island Drive to Saratoga Boulevard; neighborhood street improvements; joint City/State pro- jects; and other street and sidewalk improvements. *THE BONDS OF THIS SERIES scheduled to mature on and after November 1, 1997 may be redeemed prior to their sched- uled maturities, in whole, or in part, at the option of said City, on November 1, 1996, or on any interest payment date thereafter, for the principal amount thereof plus accrued interest to the date fixed for redemption. At least 30 days prior to the date fixed for any such redemption, a written notice of such redemption shall be given to the registered owner of each Bond or a portion thereof being called for redemption by depositing such notice in the United States Mail, postage prepaid, addressed to each such registered owner at his address shown on the Registration Books of the Paying Agent/Registrar. By the date fixed for any such redemption due provision shall be made by the City with the Paying Agent/Registrar for the payment of the required redemption price for this Bond or the portion hereof which is to be so redeemed, plus accrued interest thereon to the date fixed for redemption. If such notice of redemption is given, and if due provision for such payment is made, all as provided above, this Bond, or the portion thereof which is to be so redeemed, thereby automatically shall be redeemed prior to its scheduled maturity, and shall not bear interest after the date fixed for its redemption, and shall not be 20 regarded as being outstanding except for the right of the registered owner to receive the redemption price plus accrued interest to the date fixed for redemption from the Paying Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall record in the Registration Books all such redemptions of principal of this Bond or any portion hereof. If a portion of any Bond shall be redeemed a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the registered owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the City, all as provided in the Ordinance. *THIS BOND OR ANY PORTION OR PORTIONS HEREOF IN ANY INTEGRAL MULTIPLE OF $5,000 may be assigned and shall be transferred only in the Registration Books of the City kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, upon the terms and conditions set forth in the Ordinance. Among other requirements for such assignment and transfer, this Bond must be presented and surrendered to the Paying Agent/Registrar, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment of this Bond or any portion or 21 portions hereof in any integral multiple of $5,000 to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be trans- ferred and registered. The form of Assignment printed or endorsed on this Bond may be executed by the registered owner to evidence the assignment hereof, but such method is not exclusive, and other instruments of assignment satisfac- tory to the Paying Agent/Registrar may be used to evidence the assignment of this Bond or any portion or portions hereof from time to time by the registered owner. A new Bond or Bonds payable to such assignee (which then will be the new registered owner of such new Bond or Bonds), or to the previous registered owner in the case of the assignment and transfer of only a portion of this Bond, may be de- livered by the Paying Agent/Registrar in conversion of and exchange for this Bond, all in the form and manner as pro- vided in the Ordinance. Also, as provided in the Ordinance, this Bond, or any unredeemed portion hereof, may, at the request of the registered owner or the assignee or assignees hereof, be converted into and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, payable to the appropriate registered owner, assignee, or assignees, as the case may be, having the same maturity date, and bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000 as requested in writing by the appropriate registered 22 owner, assignee, or assignees, as the case may be, upon sur- render of this Bond to the Paying Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Ordinance. Neither the City nor the Paying Agent/Registrar shall be required (1) to make any assign- ment, transfer, conversion or exchange during a period beginning at the opening of business 30 days before the day of the first mailing of a notice of redemption of bonds and ending at the close of business on the day of such mailing, or (2) to assign, transfer, convert or exchange any bonds so selected for redemption when such redemption is scheduled to occur within 30 calendar days. The one requesting such conversion and exchange shall pay the Paying Agent/Regis- trar's reasonable standard or customary fees and charges for converting and exchanging any Bond or portion thereof, together with any taxes or governmental charges required to be paid with respect thereto, all as a condition precedent to the exercise of such privilege of conversion and ex- change, except however, that in the case of the conversion and exchange of an assigned and transferred Bond or Bonds or any portion or portions thereof in any integral multiple of $5,000, and in the case of the conversion and exchange of a portion of a Bond which has been redeemed prior to matur- ity, as provided herein, such fees and charges will be paid by the City. 23 *IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the City, resigns, or otherwise ceases to act as such, the City has covenanted in the Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, whose qualifications substantially are similar to the previous Paying Agent/Registrar it is replac- ing, and promptly will cause written notice thereof to be mailed to the registered owners of the Bonds. *BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of the terms and provisions of the Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Ordinance is duly recorded and available for inspection in the official minutes and records of the City, and agrees that the terms and provisions of this Bond and the Ordinance constitute a contract between each registered owner hereof and the City. IT IS HEREBY CERTIFIED AND RECITED that this bond has been duly and validly voted, authorized, issued and de- livered in accordance with the Constitution and laws of the State of Texas; that this bond is a general obligation of said City, issued on the full faith and credit thereof; and that the ad valorem taxes, upon all taxable property in said City, necessary to pay the interest on and principal of this bond, as such interest comes due, and such principal ma- tures, have been pledged for such purpose, within the limit prescribed by law. 24 IN WITNESS WHEREOF, this bond has been signed by the imprinted or lithographed facsimile signature of the Mayor of said City and countersigned by the imprinted or litho- graphed facsimile signature of the City Secretary of said City, and the official seal of said City has been duly impressed, or printed, or lithographed on this bond. xxxxxxx xxxxxxx City Secretary, City of Mayor, City of Corpus Corpus Christi, Texas Christi, Texas (SEAL) FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been issued under the provisions of the Ordinance described on the face of this Bond; and that this Bond has been issued in conver- sion of and exchange for or replacement of a bond, bonds, or a portion of a bond or bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. Dated By 25 Paying Agent/Registrar Authorized Representative FORM OF ASSIGNMENT: ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto / / (Please insert Social Security or Taxpayer Identification Number of Transferee) (Please print or typewrite name and address, including zip code of Transferee) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to register the transfer of the within Bond on books kept for registra- tion thereof, with full power of substitution in the premises. Dated Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company 26 NOTICE: The signature above must correspond with the name of the Registered Owner as it appears upon the front of this Bond in every parti- cular, without alteration or enlargement or any change whatsoever ** (FORM OF COMPTROLLER'S CERTIFICATE ATTACHED TO THE BONDS UPON INITIAL DELIVERY THEREOF) OFFICE OF COMPTROLLER : REGISTER NO. STATE OF TEXAS I hereby certify that there is on file and of record in my office a certificate of the Attorney General of the State of Texas to the effect that this Bond has been examined by him as required by law, and that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas, and that it is a valid and binding obliga- tion of the City of Corpus Christi, Texas, payable in the manner provided by and in the ordinance authorizing same, and said Bond has this day been registered by me. WITNESS' MY HAND and seal of office at Austin, Texas Comptroller of Public Accounts of the State of Texas (SEAL) NOTE TO PRINTER: *¶s to be on reverse side of bond **¶ not to be on bond 8. That a special fund or account, to be designated the "City of Corpus Christi, Texas General Improvement Bonds, Series 1986 Interest and Sinking Fund" is hereby created and shall be established and maintained by said City at its official depository bank. Said Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of said City, and shall be used only for paying the interest on and principal of said bonds. All taxes 27 levied and collected for and on account of said bonds shall be deposited, as collected, to the credit of said Interest and Sinking Fund. During each year while any of said bonds appertaining thereto are outstanding and unpaid, the City Council of said City shall compute and ascertain the rate and'amount of ad valorem tax, based on the latest approved tax rolls of said City, with full allowances being made for tax delinquencies and costs of tax collections, which will be sufficient to raise and produce the money required to pay the interest on said bonds as such interest comes due, and to provide a sinking fund to pay the principal of such bonds as such principal matures, but never less than 2% of the original principal amount of said bonds as a sinking fund each year. Said rate and amount of ad valorem tax is hereby ordered to be levied and is hereby levied against all taxable property in said City for each year while any of, said bonds appertaining thereto are outstanding and unpaid, and said ad valorem tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Sinking Fund. Said ad valorem taxes necessary to pay the interest on and principal of said bonds, as such interest comes due, and such principal matures, are hereby pledged for such purpose, within the limit prescribed by law. 9. (a) In the event any outstanding Bond is damaged, mutilated, lost, stolen, or destroyed, the Paying 28 Agent/Registrar shall cause to be printed, executed, and delivered, a new bond of the maturity, and interest rate, as lost, stolen, or destroyed Bond, same principal amount, the damaged, mutilated, in replacement for such Bond in the manner hereinafter provided. (b) Application for replacement of damaged, mutilated, lost, stolen, or destroyed Bonds shall be made to the Paying Agent/Registrar. In every case of loss, theft, or destruc- tion of a Bond, the applicant for a replacement bond shall furnish to the City and to the Paying Agent/Registrar such security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or destruction of a Bond, the applicant shall furnish to the City and to the Paying Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Bond, as the case may be. In every case of damage or mutilation of a Bond, the applicant shall surrender to the Paying Agent/Registrar for cancellation the Bond so damaged or mutilated. (c) Notwithstanding the foregoing provisions of this Section, in the event any such Bond shall have matured, and no default has occurred which is then continuing in the payment of the principal of, redemption premium, if any, or interest on the Bond, the City may authorize the payment of the same (without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing a replacement 29 Bond, provided security or indemnity is furnished as above provided in this Section. (d) Prior to the issuance of any replacement bond, the Paying Agent/Registrar shall charge the owner of such Bond with all legal, printing, and other expenses in connection therewith. Every replacement bond issued pursuant to the provisions of this Section by virtue of the fact that any Bond is lost, stolen, or destroyed shall constitute a contractual obligation of the City whether or not the lost, stolen, or destroyed•Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and all other Bonds duly issued under this Ordinance. (e) In accordance with Section 6 of Vernon's Ann. Tex. Civ. St. Art. 717k-6, this Section of this Ordinance shall constitute authority for the issuance of any such replace- ment bond without necessity of further action by the govern- ing body of the City or any other body or person, and the duty of the replacement of such bonds is hereby authorized and imposed upon the Paying Agent/Registrar, and the Paying Agent/Registrar shall authenticate and deliver such bonds in the form and manner and with the effect, as provided in Section 5(d) of this Ordinance for Bonds issued in conver- sion and exchange for other Bonds. 10. (a) That said bonds are hereby sold and shall be delivered to 30 at a price of par and accrued interest to date of delivery, plus a premium of $ (b) That the City Manager of said City is hereby authorized to have control of said bonds and all necessary records and proceedings 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 Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate prescribed herein to be printed and endorsed on each bond, and the seal of said Comptroller shall be impressed or printed, or lithographed on each of said bonds. 11. It is hereby officially found and determined that the meeting at which said bonds were authorized 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. St. Article 6252-17, as amended. 12. (a) A Rebate Fund is hereby established by the Issuer. Such Fund shall be for the sole benefit of the United States of America and shall not be subject to the claim of any other person, including without limitation the bondholders. The Rebate Fund is established for the purpose 31 of compliance with section 148 of the Internal Revenue Code of 1986 (the "Code"). (b) At the close of each "Bond Year", the Issuer shall compute the amount of "Excess Earnings", if any, for the period beginning on the date of delivery of the Bonds and ending at the close of such "Bond Year" and transfer an amount equal to the difference, if any, between the amount then in the Rebate Fund and the Excess Earnings so computed. The term "Bond Year" means with respect to the Bonds each one-year period ending on the anniversary of the date of delivery of the Bonds. If, at the close of any Bond Year, the amount in the Rebate Fund exceeds the amount that would be required to be paid to the United States of America under paragraph (d) below if the Bonds had been paid in full, such excess may be transferred from the Rebate Fund and paid to the Issuer. (c) In general, "Excess Earnings" for any period of time means the sum of (i) the excess of -- (A) the aggregate amount earned during such period of time on all "Nonpurpose Obligations" (including gains on the disposition of such Obligations) in which "Gross Proceeds" of the issue are invested (other than amounts attribut- able to an excess described in this subparagraph (c)(i)), over 32 (B) the amount that would have been earned during such period of time if the "Yield" on such Nonpurpose Obligations (other than amounts attrib- utable to an excess described in this subparagraph (c)(i)) had been equal to the yield on the issue, plus (ii) any income during such period of time attrib- utable to the excess described in subparagraph (c)(i) above. "Excess Earnings" will not include amounts, if any, which need not be taken into account under the special rules of section 148 (f) (4) (A) and (B) of the Code relating to bona fide debt service funds and the six-month temporary invest- ment period. The terms "Nonpurpose Obligations", "Gross Proceeds" and "Yield" shall have the meanings prescribed by section 148 of the Code and shall be applied in the manner prescribed in such section. (d) The Issuer shall pay to the United States of America at least once every five years an amount that ensures that at least 90 percent of the Excess Earnings from the date of delivery of the Bonds to the close of the period for which the payment is being made will have been paid. The Issuer shall pay to the United States of America not later than 60 days after the Bonds have been paid in full 33 100 percent of the amount then required to be paid under section 148(f) of the Code as a result of Excess Earnings. (e) The Issuer shall keep such records as will enable the Issuer to fulfill its responsibilities under this section and section 148(f) of the Code and shall retain such records for at least six years following the final payment of principal and interest on the Bonds. (f) The Issuer will not use any portion of the pro- ceeds of the Bonds directly or indirectly to acquire "higher yielding investments", or to replace funds which were used directly or indirectly to acquire "higher yielding invest- ments". The term "higher yielding investments" means any investment property (as defined in section 148(b)(2) of the Code) which produces a Yield over the term of the issue which is materially higher than the Yield on the issue (as defined above). The foregoing limitation on higher yielding investments shall not apply to (1) proceeds of the Bonds invested for a reason- able temporary period of 3 years or less until such proceeds are needed for the purpose for which the bonds are issued, or (2) amounts invested in a bona fide debt service fund if the gross earnings on such fund are less than $100,000 in any Bond Year. 34 (g) The Issuer covenants to restrict the use of Bond proceeds in such manner and to such extent, as may be necessary, so that the Bonds will not constitute arbitrage bonds under section 148 of the Code and, to the extent applicable, section 149(d) of the Code (relating to advance refundings). Any authorized representative of the Issuer having responsibility with respect to the issuance of the Bonds is authorized and directed, alone or in conjunction with any other official, employee or consultant of the Issuer to give an appropriate certificate on behalf of the Issuer, for inclusion in the transcript of proceedings for the Bonds, setting forth the facts, estimates and circum- stances and reasonable expectations pertaining to section 148 of the Code and, to the extent applicable, section 149(d) of the Code. (h) The requirements of this Section are subject to, and shall be interpreted in accordance with section 148 of the Code. (i) Additionally, the Issuer will not take any action which would adversely affect the exemption from federal income taxation of the interest paid on the Bonds, including without limitation any action that would permit any of the Bonds to be treated as "federally guaranteed" within the meaning of section 149(b) of the Code, and will take, or require to be taken, such acts as may be reasonably within its ability and as may from time to time be required under 35 applicable law or regulation to continue to exempt from federal income taxation the interest on the Bonds, including the preparation and filing of any statements or information reports required. to be filed by the Issuer in order to maintain the tax-exempt status of the interest on the Bonds. The Issuer has not taken, has no present intention of taking any action and knows of no action taken or intended which would cause interest on the Bonds to be includable in the gross income of any bondholders for federal income tax purposes. 13. The fact that the contemplated use of the proceeds of the bonds is necessary for the orderly development and growth of the City of Corpus Christi, Texas, creates a public emergency and an imperative public necessity requir- ing 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 that this ordinance take effect and be in full force and effect from and after its passage, it is accordingly so ordained. 36 14. That all ordinances and resolutions or parts thereof in conflict herewith are hereby repealed. PASSED AND APPROVED this 18th d of November, 1986. ATTEST: y of Corpus Christi, Texas City Secretary, City of Corpus Christi, Texas The foregoing ordinance was approved prior to passage as to form and correctness this the /T day of November, 1986. ty Attorney,tC�i y of Corpus Christi, Texas 37 Corpus Christi, /P4 day of ,198 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance or resolution, an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances or resolutions at three regular meetings; I/we, therefore, request that you suspend said Charter rule and pass this ordinance or resolution finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Council Members MAYOR THE CI OF CORPUS CHRISTI, TEXAS The above ordinance was passed.y the following vote: Luther Jones Dr. Jack Best 0( David Berlanga, Sr. % Leo Guerrero Of Joe McComb Frank Mendez e._ Bill Pruet 4/ Mary Pat Slavik Linda Strong 19547