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
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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.
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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
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(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.
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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
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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,
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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
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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
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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
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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
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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
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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
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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
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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:
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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.
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*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
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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
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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
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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