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HomeMy WebLinkAbout20099 ORD - 12/03/1987THE STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI On this the 3rd day of December, 1987, the City Council of the City of Corpus Christi, Texas convened in Special Meeting, with the following members of said Council present, to -wit: Betty Turner, Mayor, (vacancy) ' David Berlanga, Sr., Leo Guerrero, Linda Strong, Bill Pruet, Cliff Moss, Mary Rhodes, Mary Pat Slavik, Craig A. McDowell, Hal George, Debra J. Andrews, Armando Chapa, with the following absent: Councilmembers, City Manager, City Attorney, Director of Finance, City Secretary, Leo Guerrero and Mary Pat Slavik constituting a quorum, at which time the following among other business was transacted: City Manager' presented for the consideration of the Council an ordinance. The ordinance was read by the City Secretary. The Mayor presented to the Council a communica- tion in writing pertaining to said proposed ordinance, as follows: "Corpus Christi, Texas December 3, 1987 "TO THE CITY COUNCIL Corpus Christi, Texas Gentlemen: "The public importance and pressing need for the issuance of refunding bonds for refunding of certain of the City's General Improvement Bonds to facilitate further financing for permanent improvements creates an emergency 20099 and an imperative public necessity requiring the suspension of rules and Charter provisions requiring ordinances to be considered and voted upon at three regular meetings. I, therefore, request that the City Council pass the proposed ordinance authorizing an escrow agreement as an emergency measure. You will please consider this request in connection with the ordinance which is to be introduced for passage by the City Council on the subject. Councilmember Bill Pruet "Yours very truly, /s/ Betty Turner Mayor" moved that the Charter provision prohibiting ordinances from being passed finally on the date introduced be suspended for the reasons stated in the written request of the Mayor and stated in the emer- gency clause of the ordinance. The motion was seconded by Councilmember Linda Strong . The motion was carried by an unanimous vote by the City Council, viz.: AYES: All present voted Aye. NAYS: None. Councilmember P 1e V E T moved that the ordi- nance be passed finally. The motion was seconded by Coun- cilmember STR-a.vG The motion was carried by the following vote: AYES: All present voted Aye. NAYS: None. The Mayor announced that the ordinance had been passed. The ordinance is as follows: 20099 - ORDINANCE AUTHORIZING AN ESCROW AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI, TEXAS AND FIRST CITY BANK OF CORPUS CHRISTI, AS ESCROW AGENT, AND OTHER MATTERS PERTAINING THERETO THE STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI WHEREAS, the City has outstanding certain of its City of Corpus Christi, Texas General Improvement and Refunding Bonds, Series 1985-A, payable from ad valorem taxes in the aggregate principal amount of $23,170,000 (hereinafter referred to as the "Refunded Obligations"); and WHEREAS, it is the desire of the City and the City is authorized by Article 717k, V.A.T.C.S., as amended, to sell its bonds for the purpose of refunding the Refunded Obliga- tions and to place the proceeds from the sale of such refunding bonds, together with other funds lawfully avail- able therefor, in escrow to be held and applied to the payment of the Refunded Obligations; and WHEREAS, the City by passage of an ordinance con- currently herewith, authorizing the issuance of the City's General Improvement and Refunding Bonds, Series 1987 (the "Series 1987 Bonds"), provides that the City will concur- rently with the delivery of the Series 1987 Bonds to the purchasers thereof deposit a portion of the proceeds from the sale of the Series 1987 Bonds into a special escrow fund to be held in accordance with a special escrow agreement; and WHEREAS, the Refunded Obligations shall mature or be redeemed prior to their scheduled maturities in accordance with the ordinance authorizing their issuance; and WHEREAS, such special escrow agreement provides for payment from funds in the escrow fund of all of the interest coming due on the Refunded Obligations and the principal thereof as it matures upon their scheduled maturities or their prior redemption; and WHEREAS, it is the desire of the City to provide for the special escrow agreement required by the ordinance authorizing the issuance of the Series 1987 Bonds; and WHEREAS, it is desirable that the special escrow agreement provide for the investment of monies so escrowed in direct obligations (including book -entry form) of the United States of America, which must have interest payable and maturities of principal at times to insure the existence of monies, together with other funds lawfully available therefor, sufficient to pay the principal of, and interest on the Refunded Obligations as the same shall come due and mature in accordance with their terms on their respective maturity dates or redemption dates, as the case may be; and WHEREAS, the City has made arrangements to purchase such direct obligations of the United States of America, which have interest payable thereon coming due and matur- ities at times to insure the existence of monies, together with other funds lawfully available therefor, sufficient to pay the principal of, and interest on the Refunded Obligations as the same shall come due and mature in accordance with their terms on such maturity dates and redemption dates; and WHEREAS, Article 717k, V.A.T.C.S., as amended, provides that when the initial deposit of securities (and any unin- vested money) is made with First City Bank of Corpus Christi, Corpus Christi, Texas (the "Escrow Agent"), such deposit shall constitute the making of firm banking and financial arrangements for the discharge and final payment or redemption of the obligations being refunded, and although such obligations being refunded shall continue to be obligations of the Issuer, automatically they shall become obligations of the Issuer secured solely by and payable solely from such deposit and the proceeds therefrom; and upon the making of such deposit, all previous encum- brances existing in connection with said obligations being refunded (whether in connection with taxes, revenues, real and personal property, or any other source of security or payment) automatically shall terminate and be finally discharged and released, as a matter of law, and said encumbrances shall be of no further force or effect; and although said obligations being so refunded will remain outstanding, they shall be regarded as being outstanding only for the purpose of receiving the funds provided by the Issuer for their payment or redemption, and they shall not be regarded as being outstanding in ascertaining the power of the Issuer to issue bonds, or in calculating any limitations in connection therewith, or for any other purpose; and WHEREAS, it is in order for the City Council to author- ize the execution of a special escrow agreement covering the handling of such special escrow fund; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: 1. That the City Manager of the City is hereby author- ized and directed to execute, the City Secretary is author- ized to attest, and the City Attorney is authorized to approve as to form and correctness, on behalf of the City, the Escrow Agreement covering the use of the monies to be deposited with the Escrow Agent therein named for the benefit of the holders of the Refunded Obligations. 2. That the form of such Escrow Agreement which constitutes a part of this authorizing ordinance shall be substantially as follows, to -wit: 3. That all ordinances, resolutions and orders incon- sistent herewith or in conflict herewith are hereby re- scinded to the extent of such inconsistency or conflict. 4.. That if as a result of the issuance of the Series 1987 Bonds and the refunding of the Refunded Obligations less than all of a given maturity of the Refunded Obliga- tions are payable from the escrow fund described in the Escrow Agreement, then in such a circumstance the Escrow Agent is hereby directed to determine by lot, by such method as the Escrow Agent deems appropriate, which of the owners of the Refunded Obligations within such a given maturity are to be paid from funds on deposit in said escrow fund. In addition, upon the completion of the lottery described above, the Escrow Agent is hereby directed to notify promptly each registered owner within a given maturity of the Refunded Obligations in which less than all of such Refunded Obligations are being refunded as to whether all or a portion or none of his Refunded Obligation is payable from funds on deposit in said escrow fund. Such notice is to be mailed to each such registered owner at his address shown on the registration books maintained by the Escrow Agent, acting in its capacity as Paying Agent/Registrar for the Refunded Obligations, as of the date said lottery is con- ducted. 5. That the fact that the contemplated issuance of such 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 requiring thesuspension of the Charter Rule providing that no ordi- nance 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 imper- ative 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. PASSED this 3rd day of December, 1987. nZ;t6 ayor, C y of Corpus Christi, Texas (SEAL) The foregoing ordinance was approved prior to passage as to form and correctness this the 3rd day of December, 1987 City Attorney, City of Corpus Christi, Texas THE STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI . I, the undersigned, City Secretary of the City of Corpus Christi, Texas, do hereby certify that the above and foregoing is a true, full and correct copy of an ordinance passed by the City Council of the City of Corpus Christi, Texas (and of the minutes pertaining thereto), on the 3rd day of December, 1987, authorizing an Escrow Agreement between the City of Corpus Christi and First City Bank of Corpus Christi, which ordinance is duly of record in the minutes of said City Council, and said meeting was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Vernon's Ann. Civ. Stat. 6252-27, as amended. EXECUTED UNDER MY HAND AND SEAL OF SAID CITY, this the 3rd day of December, 1987. (SEAL) City Secretary, City of Corpus Christi, Texas Corpus Christi, Texas _Ord— day of Lo..Qpl1. •ia) , 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 The above ordinance Betty N. Turner David Berlanga, Sr. Leo Guerrero G.e-1 AI f 1-CITMTICRl7CL Clif Moss Bill Pruet Mary Rhodes Mary Pat Slavik Linda Strong 99.045.01 MOR THE CITY OF CORPUS CHRISTI, TEXAS was passed by the following vote: 20099