HomeMy WebLinkAboutMinutes City Council - 05/18/2006 - Special1 HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the
Special Meeting of the Corpus Christi City Council of May 18, 2006, which were approved by
the City Council on May 2 2006.
WITNESSETH MHAND AND SEAL. on this the 23rd day of May, 2006.
Armando Chapa
City Secretary
SEA1
PRESENT
Mayor Henry Garrett
Mayor Pro Tem John Marez *
Council Members:
Melody Cooper
Jerry Garcia
Bill Kelly
Rex Kinnison *
Jesse Noyola
Mark Scott
ABSENT
Brent Chesney
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Special Council Meeting
May 18, 2006 — 2:00 p.m.
City Staff:
City Manager George K. Noe
City Attorney Mary Kay Fischer
City Secretary Armando Chapa
Mayor Garrett called the meeting to order in the Council Chambers of City Hall.
Mayor Garrett opened discussion on Item C regarding the issuance of up to $20,000,000
in Combination Tax and Revenue Certificates of Obligation for the landfill projects. Director of
Financial Services Cindy O'Brien introduced the financing team as follows: Mr. Jeff Leuschel, bond
counsel; Mr. Jim Gilley with Coastal Securities; and Mr. Mark Seale with M.E. Allison, underwriter.
(*Mr Marez arrived at 2:01 p.m )
Mr Seale reported on the bond sale and pricing. He thanked the Council for holding today's
special meeting. He said the financing team priced the bonds on Monday, before the CPI was
released on Wednesday. When the CPI was released, it was higher than expected, so the bond
market fell off a point and a half. Thus, since the Council agreed to the special meeting today, the
team was able to save Corpus Christi citizens several hundred thousands of dollars by pricing on
Monday
Mr Seale referred to a pricing results report that he had distributed. The bond ratings were
as follows: Moody's — Al; S & P — A+; and Fitch — AA-. The lowest insurance bid on the bonds was
from XL Capital Assurance Inc., so the bonds were sold at a AAA rating from all three rating
agencies. The par amount was $18,605.000, and $18,000,000 of this amount was deposited into
the project fund. The final maturity on the bonds was on March 1, 2036, run at a level debt service
schedule. The net interest costs were at 4.797 percent. He said the rest of the information in
packet provided the maturity schedule, market information, and rationale letters from the rating
agencies. He said the rating agencies were comfortable with the city's finances, pointing to the
strength of the management.
Mr Scott asked Mr Noe to comment on the report. Mr. Noe replied the city's ratings had
remained stable for some period of time. The report noted the city's changes in fund balance and
the improvements in the general operating budget. He said the only difference in this bond sale was
that the city had requested 30 -year bonds rather than 20 -year bonds because the life of the landfill
was projected at 50 to 100 years. Mr. Scott asked Mr. Noe to publicize any other positive or
interesting results from the pricing report to the media because they spoke well of the city's finances.
*Mr Kinnison arrived at 2 05 p.m
Minutes - Special Council Meeting
May 18 2006 - Page 2
Mr Seale stated that coastal communities were being scrutinized by insurance and rating
agencies because of Hurricane Katrina. He was pleased, therefore, that all the rating agencies
offered the same ratings with a stable outlook. The insurance agency, XL Capital Assurance, also
offered an extremely attractive bid of 18.8 basis points, but many other companies offered much
higher bids because of their experience with coastal communities and Hurricane Katrina. Mr. Seale
said staff had discussed making a presentation to the insurance companies to assuage their
concerns about Corpus Christi. Mr. Scott spoke in support of making a presentation, saying people
needed to know that doing business in Corpus Christi was still profitable. City Secretary Chapa
polled the Council for their votes as follows:
ORDINANCE NO. 026783
Ordinance by the City Council of the City of Corpus Christi, Texas, providing for the issuance
of City of Corpus Christi, Texas, Combination Tax and Solid Waste Revenue Certificates of
Obligation, Series 2006, in an amount not in excess of $20,000,000, and ordaining other
matters related to the subject.
An emergency was declared, and the foregoing ordinance was passed and approved with
the following vote: Garrett, Cooper, Garcia. Kelly, Kinnison, Marez, Noyola, and Scott, voting
"Aye"; Chesney was absent.
Mayor Garrett called for public comment. There were no comments from the audience.
There being no further business to come before the Council, Mayor Garrett adjourned the
Council meeting at 2:07 p.m. on May 18, 2006.
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