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
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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:
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