HomeMy WebLinkAbout020562 ORD - 01/17/1989THE STATE OF TEXAS
COUNTY OF NUECES •
CITY OF CORPUS CHRISTI
On this the 17th day of January, 1989, the City Council
of the City of Corpus Christi, Texas convened in Regular
Meeting, with the following members of said Council present,
to -wit:
Betty Turner,
Frank Schwing
David Berlanga, Sr.,
Leo Guerrero,
Linda Strong,
Bill Pruet,
Cliff Moss,
Mary Rhodes,
Mary Pat Slavik,
Juan Garza,
Hal George,
Jorge G. Garza,
Armando Chapa,
•
.
Mayor,
Councilmembers,
City Manager,
City Attorney,
Director of Finance,
City Secretary,
with the following absent: Berlanga, Slayik
constituting a quorum, at which time the following among
other business was transacted:
Juan Garza presented for the consideration of
the Council an ordinance. The ordinance was read by the
City Secretary. The Mayor presented to the Council a
communication in writing pertaining to said proposed
ordinance, as follows:
"Corpus Christi, Texas
January 17, 1989
"TO THE CITY COUNCIL
Corpus Christi, Texas
Gentlemen:
"The public importance and pressing need for the
issuance of General Improvement Bonds to facilitate further
financing for permanent improvements creates an emergency
20562 MICROFILMED
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 adopt the proposed
ordinance authorizing the issuance of bonds as an emergency
measure. You will please consider this request in connec-
tion with the ordinance which is to be introduced for
passage by the City Council on the subject.
"Yours very truly,
/s/ Betty Turner
Mayor"
Counc i lmember S chwing 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
Counc i lmember Pruet
. The motion was carried by an
unanimous vote by the City Council, viz.:
AYES: All present voted Aye.
NAYS: None.
Counc i lmember Guerrero moved that the ordinance be
passed finally. The motion was seconded by Councilmember
Moss
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:
ORDINANCE NO.
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF
$16,000,000.00 GENERAL IMPROVEMENT BONDS,
SERIES 1989, OF THE CITY OF CORPUS CHRISTI,
TEXAS, 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 MATURITY; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH; DECLARING AN
EMERGENCY; AND ALL OTHER MATTERS RELATED
THERETO.
WHEREAS, it is deemed advisable and to the best inter-
est of the City of Corpus Christi, Texas (the "City") , that
bonds authorized at elections held in the City on April 5,
1986 and April 6, 1987, respectively, be sold at this time,
with the amounts of bonds authorized thereat, the purposes
authorized, and the amount now to be sold being as follows:
DATE OF AMOUNT AMOUNT PRE- AMT.NOW
ELECTION AUTHORIZED PURPOSE VIOUSLY SOLD OFFERED
4-5-86 $15,890,000 Wastewater $10,580,000 $2,715,000
4-5-86 5,560,000 Draing.&Strm Sew. 2,870,000 445,000
4-5-86 4,000,000 Aquarium 4,000,000 -0-
4-5-86 9,900,000 Pub.Health & Saf. 7,400,000 870,000
4-5-86 4,785,000 Airport 1,310,000 -0-
4-5-86 14,875,000 Parks & Recrea. 4,115,000 5,205,000
4-5-86 49,935,000 Streets 10,050,000 6,465,000
4-6-87 1,000,000 Library Books 250,000 250,000
4-6-87 420.000 Senior Centers -0- 50.000_
$106,365,000 $40,575,000 $16,000,000
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
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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. Stat. Article
6252-17, as amended.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
1. That the bonds of the City to be called "General
Improvement Bonds, Series 1989" (the "Bonds"), in the
aggregate principal amount of $16,000,000.00 be issued under
and by virtue of the Constitution and laws of the State of
Texas and the Charter of the City for the purpose of pro-
viding funds for permanent improvements, to -wit: for the
purpose of providing $2,715,000 for wastewater improvements,
including: Westside Plant Expansion; Sewer Main Rehabili-
tation: West Allison Trunk Sanitary Sewer Number 2; South
Side Treatment Plant Land Acquisition; and other wastewater
improvements; $445,000 for constructing drainage and storm
sewer improvements including Turkey Creek; Mary Carroll
Channel; Richter Channel Widening; Joint City/State pro-
jects; 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; $870,000 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
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acquisition; a public safety radio communication system; a
municipal service center; and related permanent improve-
ments; $5,205,000 for improving lands for park and
recreation facilities, including various neighborhood parks;
seawall and T-head improvements; renovation and expansion of
existing recreation facilities; development of unimproved
park land (existing acreage); and other park improvements;
$6,465,000 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
Drive from South Padre Island Drive to Saratoga Boulevard;
neighborhood street improvements; joint City/State projects;
and other street and sidewalk improvements; $250,000 for the
acquisition of library books (children and adult) reference
and resource materials for Corpus Christi Public Library and
the Flour Bluff, Greenwood, Northwest and Parkdale Branches;
and $50,000 for making permanent improvements for expansion
of the Lindale and Greenwood Senior Centers.
2. That the Bonds shall be issued as fully registered
bonds without interest coupons and shall be dated January
15, 1989.
3. That the Bonds shall be in the denomination of
$5,000 or any integral part thereof, numbered consecutively
from R-1 upward, shall mature and be payable on the maturity
dates, and in the amounts, and bear interest at the rates
per annum, respectively, as follows:
MATURITY
DATE
March 1, 1990
March 1, 1991
March 1, 1992
March 1, 1993
March 1, 1994
March 1, 1995
March 1, 1996
March 1, 1997
March 1, 1998
March 1, 1999
AMOUNT
$400,000
400,000
500,000
500,000
600,000
600,000
250,000
250,000
250,000
250,000
INTEREST
RATE (%)
MATURITY
DATE AMOUNT
March 1, 2000 $ 850,000
March 1, 2001 1,200,000
March 1, 2002 1,200,000
March 1, 2003 1,200,000
March 1, 2004 1,200,000
March 1, 2005 1,200,000
March 1, 2006 1,200,000
March 1, 2007 1,200,000
March 1, 2008 1,200,000
March 1, 2009 1,550,000
INTEREST
RATE (%)
Said interest shall be payable to the registered owner of
each such Bond in the manner provided and on the dates
stated in the FORM OF BOND set forth in this Ordinance.
4. That the City reserves the right to redeem the
Bonds maturing on or after March 1, 2000, in whole or in
part, on March 1, 1999, or on any interest payment date
thereafter, at a redemption price equal to the principal
amount thereof and accrued interest thereon to the date
fixed for redemption. The years of maturity of the Bonds
called for redemption at the option of the City prior to
stated maturity shall be selected by the City. The Bonds or
portions thereof redeemed within a maturity shall be
selected at random and by lot by the Paying Agent/Registrar.
At least 30 days prior to the date fixed for any such
redemption, (i) 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, first-class postage
prepaid, in the name of the City and at the City's expense
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addressed to each such registered owner at his address shown
on the registration books of the Paying Agent/Registrar
(hereinafter defined) and (ii) notice of such redemption
shall be published one (1) time in a financial journal or
publication of general circulation in the United States of
America carrying as a resular feature notices of municipal
bonds called for redemption; provided, however, that the
failure to send, mail, or receive such notice described in
(i) above, or any defect therein or in the sending or
mailing thereof, shall not affect the validity or effective-
ness of the proceedings for the redemption of any Bond, and
it is hereby specifically provided that the publication of
notice described in (ii) above shall be the only notice
actually required in connection with or as a prerequisite to
the redemption of any Bonds. 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 written 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
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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, 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 pro-
vided in this Ordinance.
5. (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,
trust company, financial institution, or other agency 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 "Registra-
tion 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 registra-
tions under such reasonable 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/
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Registrar to obtain from the registered owner and record in
the Registration Books the 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/Reg-
istrar, 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. Registration of each Bond may be trans-
ferred 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 satisfactory to the Paying Agent/
Registrar, evidencing the assignment of such bond, or any
portion thereof in any integral multiple of $5,000 denomina-
tion to the assignee or assignees thereof, and the right of
such assignee or assignees to have such 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 substitute bond or bonds shall be
issued in exchange therefor in the manner herein provided.
(b) The entity in whose name any Bond shall be regis-
tered 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, and
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the City and the Paying Agent/Registrar shall not be affect-
ed by any notice to the contrary; 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 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
exchanges of such bonds, and all replacements of such bonds,
as provided in this Ordinance.
(d) Each Bond may be 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
unredeemed 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 author-
ized attorneys or representatives, with guarantee of signa-
tures satisfactory to the Paying Agent/Registrar, at the
option of the registered owner or such assignee or
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assignees, as appropriate, be exchanged for fully registered
bonds, without interest coupons, in the form prescribed in
the FORM OF BOND set forth in this Ordinance, in the denomi-
nation of $5,000, or any integral multiple thereof (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
unredeemed principal amount of any Bond or Bonds so sur-
rendered, 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 sur-
render thereof for cancellation. If any Bond or portion
thereof is assigned and transferred, each bond issued in
exchange therefor shall have the same maturity date and bear
interest at the same rate as the bond for which it is being
exchanged. Each substitute bond shall bear a letter and/or
number to distinguish it from each other bond. The Paying
Agent/Registrar shall exchange or replace Bonds as provided
herein, and each fully registered bond or bonds delivered in
exchange for or replacement of any Bond or portion thereof
9
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 exchanged or replaced. It is
specifically provided, however, that any Bond delivered in
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 substitute
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 ex-
changed has not been paid, then such substitute bond shall
be dated as of the date to which such interest has been paid
in full. On each substitute bond issued in exchange for or
replacement of any Bond or Bonds issued under this Ordinance
there shall be printed thereon a Paying Agent/Registrar's
Authentication Certificate, in the form hereinafter set
forth. An authorized representative of the Paying Agent/ -
Registrar shall, before the delivery of any such substitute
bond, date such substitute bond in the manner set forth
above, and manually sign and date such Certificate, and no
such substitute bond shall be deemed to be issued or out-
standing unless such Certificate is so executed. The Paying
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Agent/Registrar promptly shall cancel all Bonds surrendered
for 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 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 exchange or replacement of
any Bonds as aforesaid is hereby imposed upon the Paying
Agent/Registrar, and, upon the execution of said Paying
Agent/Registrar's Authentication Certificate, the exchanged
or replaced bond shall be valid, incontestable, and enforce-
able in the same manner and with the same effect as the
Bonds 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 issue,
transfer, or exchange any Bond 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
transfer or exchange any Bond so selected for redemption in
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whole when such redemption is scheduled to occur within 30
calendar days.
(e) All Bonds issued in exchange or replacement of any
other Bond or portion thereof, (i) shall be issued in fully
registered form, without interest coupons, with the princi-
pal 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 exchanged 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 all of the Paying Agent/Regis-
trar's reasonable and customary fees and charges for making
transfers and exchanges of Bonds, but the registered owner
of any Bond requesting such transfer shall pay any taxes or
other governmental charges required to be paid with respect
thereto. 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 solely to the extent above provided,
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and with respect to the 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
the City will provide a competent and legally qualified
bank, trust company, financial institution, or other agency
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 written 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 super-
vision or examination by federal or state Authority, and
whose qualifications substantially are similar to the
previous Paying Agent/Registrar to act as Paying Agent/Reg-
istrar under this Ordinance. Upon any change in the Paying
Agent/Registrar, the previous Paying Agent/Registrar prompt-
ly shall transfer and deliver the registration books (or a
copy thereof), along with all other pertinent books and
13
records relating to the Bonds, to the new Paying Agent/Reg-
istrar 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 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 provi-
sions of this Ordinance, and a certified copy of this
Ordinance shall be delivered to each Paying Agent/Registrar.
6. The form of all Bonds, including the form of the
Comptroller's Registration Certificate to accompany the
Bonds on the initial delivery thereof, the form of Paying
Agent/Registrar's Authentication Certificate, and the Form
of Assignment to be printed on each of the Bonds, shall be,
respectively, substantially as follows, with such appropri-
ate variations, omissions, or insertions as are permitted or
required by this Ordinance.
FORM OF BOND
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI, TEXAS
GENERAL IMPROVEMENT BOND
SERIES 1989
NO. R- S
MATURITY DATE INTEREST RATE ORIGINAL ISSUE DATE CUSIP
January 15, 1989
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ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF
CORPUS CHRISTI, TEXAS (the "Issuer"), hereby promises to pay
to , or to the registered
assignee hereof (either being hereinafter called the "regis-
tered 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 September 1, 1989, and
semiannually on each March 1 and September 1 thereafter,
except that if the Paying Agent/Registrar's Authentication
Certificate appearing on the face of this Bond is dated
later than September 1, 1989, such interest is payable semi-
annually on each March 1 and September 1 following such
date.
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
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owner hereof as shown by the Registration Books kept by the
Paying Agent/Registrar at the close of business on the 15th
day of the month next preceding such interest payment date
by check drawn by the Paying Agent/Registrar on, and payable
solely from, funds of the Issuer required to be on deposit
with the Paying Agent/Registrar for such purpose as herein-
after provided; and such check shall be sent by the Paying
Agent/Registrar by United States mail, first-class postage
prepaid, on each such interest payment date, to the regis-
tered owner hereof at its address as it appears on the
Registration Books kept by the Paying Agent/Registrar, as
hereinafter described, or by such other method, acceptable
to the Paying Agent/Registrar, requested by, and at the risk
and expense of, the registered owner. The Issuer covenants
with the registered owner of this Bond that no later than
each principal payment and/or interest payment date for this
Bond it will make available to the Paying Agent/Registrar
from the Interest and Sinking Fund as defined by the
ordinance authorizing the Bonds (the "Ordinance") the
amounts required to provide for the payment, in immediately
available funds, of all principal of and interest on the
Bonds, when due.
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.
*IF THE DATE for the payment of the principal of or
interest on this Bond shall be a Saturday, Sunday, a legal
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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, principal amount, interest
rate, maturity, option of redemption, and method of payment
of interest, dated as of the Original Issue Date specified
above, authorized in accordance with the Constitution and
laws of the State of Texas, aggregating in principal amount
$16,000,000.00, for the purpose of providing funds for
various permanent improvements, to -wit: wastewater improve-
ments; drainage and storm sewer improvements; public health
and safety improvements; park and recreation improvements;
street improvements; the acquisition of library books; and
the expansion of senior centers.
*ON MARCH 1, 2000, or on any interest payment date
thereafter, the Bonds of this Series maturing on March 1,
1999 and thereafter may be redeemed prior to their scheduled
maturities, at the option of the Issuer, with funds derived
from any available and lawful source, as a whole, or in part
(provided that a portion of a Bond may be redeemed only in
an integral multiple of $5,000), at par and accrued interest
17
to the date fixed for redemption. The years of maturity of
the Bonds called for redemption at the option of the Issuer
prior to stated maturity shall be selected by the Issuer.
The Bonds or portions thereof redeemed within a maturity
shall be selected at random and by lot by the Paying Agent/ -
Registrar.
*AT LEAST 30 days prior to the date fixed for any such
redemption, (a) 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, first-class postage
prepaid, addressed to each such registered owner at his
address shown on the Registration Books of the Paying
Agent/Registrar and (b) notice of such redemption shall be
published one (1) time in a financial journal or publication
of general circulation in the United States of America
carrying as a regular feature notices of municipal bonds
called for redemption, provided, however, that the failure
to send, mail, or receive such notice described in (a)
above, or any defect therein or in the sending or mailing
thereof, shall not affect the validity or effectiveness of
the proceedings for the redemption of any Bond, and the
Ordinancep rovides that the publication of notice as
described in (b) above shall be the only notice actually
required in connection with or as a prerequisite to the
redemption of any Bonds. By the date fixed for any such
redemption due provision shall be made by the Issuer with
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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 hereof 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
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 Issuer, all as provided in the Ordinance.
*ALL BONDS OF THIS SERIES are issuable solely as fully
registered bonds, without interest coupons, in the denomina-
tion of any integral multiple of $5,000. As provided in the
19
Ordinance, this Bond, or any unredeemed portion hereof, may,
at the request of the registered owner or the assignee or
assignees hereof, be assigned, transferred, 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 owner, assignee, or assignees, as the
case may be, upon surrender of this Bond to the Paying
Agent/Registrar for cancellation, all in accordance with the
form and procedures set forth in the Ordinance. Among other
requirements for such assignment and transfer, this Bond
must be presented and surrendered to the Paying Agent/Reg-
istrar, 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 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 transferred and registered. The form of Assign-
ment 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
satisfactory to the Paying Agent/Registrar may be used to
evidence the assignment of this Bond or any portion or
20
portions hereof from time to time by the registered owner.
The Issuer shall pay the Paying Agent/Registrar's reasonable
standard or customary fees and charges for transferring and
exchanging any Bond or portion thereof. In any circum-
stance, any taxes or governmental charges required to be
paid with respect thereto shall be paid by the one request-
ing such assignment, transfer, or exchange as a condition
precedent to the exercise of such privilege. In any cir-
cumstance, neither the Issuer nor the Paying Agent/ Reg-
istrar shall be required (1) to make any transfer or ex-
change 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 transfer or exchange any
bonds so selected for redemption when such redemption is
scheduled to occur within 30 calendar days.
*IN THE EVENT any Paying Agent/Registrar for the Bonds
is changed by the Issuer, resigns, or otherwise ceases to
act as such, the Issuer has covenanted in the Ordinance that
it promptly will appoint a competent and legally qualified
substitute therefor, and promptly will cause written notice
thereof to be mailed to the registered owners of the Bonds.
*IT IS HEREBY CERTIFIED AND RECITED that the issuance
of this Bond, and the series of which it is a part, is duly
voted, authorized, issued and delivered in accordance with
the Constitution and laws of the State of Texas; that all
acts, conditions and things required to be done precedent to
21
and in the issuance of this series of bonds, and of this
Bond, have been properly done and performed and have hap-
pened in regular and due time, form and manner as required
by law; and that ad valorem taxes, upon all taxable property
in said City, necessary to pay the interest on and principal
of this bond, and the series of which it is a part, as such
interest comes due, and such principal matures, have been
pledged for such purpose, within the limit prescribed by
law.
*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 governing body of the Issuer, and
agrees that the terms and provisions of this Bond and the
Ordinance constitute a contract between each registered
owner hereof and the Issuer.
IN WITNESS WHEREOF, this Bond has been signed by the
printed or lithographed facsimile signature of the Mayor of
said Issuer, attested by the printed or lithographed facsim-
ile signature of the City Secretary, and the official seal
of the Issuer has been duly affixed to, or impressed, or
printed, or lithographed, on this Bond.
ATTEST:
(facsimile signature) (facsimile signature)
City Secretary Mayor
(SEAL)
22
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:
Paying Agent/Registrar
By
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 the
23
books kept for registration 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.
**
NOTICE: The signature above
must correspond with the name
of the Registered Owner as it
appears upon the front of this
Bond in every particular,
without alteration or enlarge-
ment 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:
*Ss to be on reverse side of bond
**q not to be on bond
24
7. That a special fund or account, to be designated
the "City of Corpus Christi, Texas Interest and Sinking
Fund" is hereby created and shall be established and main-
tained 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 the
Bonds. All taxes levied and collected for and on account of
the Bonds shall be deposited, as collected, to the credit of
said Interest and Sinking Fund. During each year while any
of the Bonds 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 delin-
quencies and costs of tax collections, which will be suffi-
cient
uffi-
cient to raise and produce the money required to pay the
interest on the Bonds as such interest comes due, and to
provide a sinking fund to pay the principal of the Bonds as
such principal matures, but never less than 2% of the
original principal amount of the 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 the
Bonds 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.
25
Said ad valorem taxes necessary to pay the interest on and
principal of the Bonds, as such interest comes due, and such
principal matures, are hereby pledged for such purpose,
within the limit prescribed by law.
8. (a) In the event any outstanding Bond is damaged,
mutilated, lost, stolen, or destroyed, the Paying
Agent/Registrar shall cause to be printed, executed, and
delivered, a new bond of the same principal amount, maturi-
ty, and interest rate, as the damaged, mutilated, lost,
stolen, or destroyed Bond, 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
26
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
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, subject to the
conditions imposed by this Section 8, and the Paying Agent/
Registrar shall authenticate and deliver such bonds in the
27
form and manner and with the effect, as provided in Section
5(d) of this Ordinance for Bonds issued in exchange for
other Bonds.
9. That the Mayor of the City is hereby authorized to
have control of the Bonds and all necessary records and
proceedings pertaining to the Bonds pending their delivery
and their investigation, examination and approval by the
Attorney General of the State of Texas, and their registra-
tion by the Comptroller of Public Accounts of the State of
Texas. Upon registration of the 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 accompanying the Bonds, and the
seal of said Comptroller shall be impressed, or placed in
facsimile, on each such certificate.
10. (a) That said Bonds are hereby sold and shall be
delivered to
, 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
28
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. The City covenants to take any action or refrain
from any action which would adversely affect the treatment
of the Bonds as obligations described in section 103 of the
Internal Revenue Code of 1986, as amended (the "Code") , the
interest on which is not includable in the "gross income" of
the holder for purposes of federal income taxation. In
furtherance thereof, the City covenants as follows:
(a) to take any action to assure that no more
than 10 percent of the proceeds of the Bonds (less
amounts deposited to a reserve fund, if any) are used
for any "private business use," as defined in section
141(b) (6) of the Code or, if more than 10 percent of
the proceeds are so used, that amounts, whether or not
received by the City, with respect to such private
business use, do not, under the terms of this Ordinance
or any underlying arrangement, directly or indirectly,
secure or provide for the payment of more than 10
percent of the debt service on the Bonds, in
contravention of section 141(b) (2) of the Code;
(b) to take any action to assure that in the
event that the "private business use" described in
subsection (a) hereof exceeds 5 percent of the proceeds
29
of the Bonds (less amounts deposited into a reserve
fund, if any) then the amount in excess of 5 percent is
used for a "private business use" which is "related"
and not "disproportionate," within the meaning of
section 141(b) (3) of the Code, to the governmental use;
(c) to take any action to assure that no amount
which is greater than the lesser of $5,000,000, or 5
percent of the proceeds of the Bonds (less amounts
deposited into a reserve fund, if any) is directly or
indirectly used to finance loans to persons, other than
state or local governmental units, in contravention of
section 141(c) of the Code;
(d) to refrain from taking any action which would
otherwise result in the Bonds being treated as "private
activity bonds" within the meaning of section 141(b) of
the Code;
(e) to refrain from taking any action that would
result in the Bonds_ being "federally guaranteed" within
the meaning of section 149(b) of the Code;
(f) to refrain from using any portion of the
proceeds of the Bonds, directly or indirectly, to
acquire or to replace funds which were used, directly
or indirectly, to acquire investment property (as
defined in section 148 (b) (2) of the Code) which produc-
es a materially higher yield over the term of the
Bonds, other than investment property acquired with --
30
(1) proceeds of the Bonds invested for a
reasonable temporary period of 3 years or less or,
in the case of a refunding bond, for a period of
30 days or less until such proceeds are needed for
the purpose for which the bonds are issued,
(2) amounts invested in a bona fide debt
service fund, within the meaning of section
1.103-13(b)(12) of the Treasury Regulations, and
(3) amounts deposited in any reasonably
required reserve or replacement fund to the extent
such amounts do not exceed 10 percent of the
proceeds of the Bonds;
(g) to otherwise restrict the use of the proceeds
of the Bonds or amounts treated as proceeds of the
Bonds, as may be necessary, so that the Bonds do not
otherwise contravene the requirements of section 148 of
the Code (relating to arbitrage) and, to the extent
applicable, section 149(d) of the Code (relating to
advance refundings) ;
(h) to pay to the United States of America at
least once during each five-year period (beginning on
the date of delivery of the Bonds) an amount that is at
least equal to 90 percent of the "Excess Earnings,"
within the meaning of section 148(f) of the Code and to
pay to the United States of America, not later than 60
days after the Bonds have been paid in full, 100
percent of the amount then required to be paid as a
31
result of Excess Earnings under section 148(f) of the
Code; and
(i) to maintain such records as will enable the
City to fulfill its responsibilities under this section
and section 148 of the Code and to retain such records
for at least six years following the final payment of
principal and interest on the Bonds.
It is the understanding of the City that the covenants
contained herein are intended to assure compliance with the
Code and any regulations or rulings promulgated by the U.S.
Department of the Treasury pursuant thereto. In the event
that regulations or ruling are hereafter promulgated which
modify, or expand provisions of the Code, as applicable to
the Bonds, the City will not be required to comply with any
covenant contained herein to the extent that such modifica-
tion or expansion, in the opinion of nationally -recognized
bond counsel, will not adversely affect the exemption from
federal income taxation of interest on the Bonds under
section 103 of the Code. In the event that regulations or
rulings are hereafter promulgated which impose additional
requirements which are applicable to the Bonds, the City
agrees to comply with the additional requirements to the
extent necessary, in the opinion of nationally -recognized
bond counsel, to preserve the exemption from federal income
taxation of interest on the Bonds under section 103 of the
Code.
32
12. Interest earnings derived from the investment of
proceeds from the sale of the Bonds shall be used along with
other bond proceeds for the construction of the permanent
improvements set forth in Section 1 hereof for which the
Bonds are issued; provided that after completion of such
permanent improvements, if any of such interest earnings
remain on hand, such interest earnings shall be deposited in
the Interest and Sinking Fund. It is further provided,
however, that any interest earnings on bond proceeds which
are required to be rebated to the United States of America
pursuant to Section 11 hereof in order to prevent the Bonds
from being arbitrage bonds shall be so rebated and not
considered as interest earnings for the purposes of this
Section.
13. That all ordinances and resolutions or parts
thereof in conflict herewith are hereby repealed.
14. That this Ordinance shall take effect and be in
full force and effect from and after the date of its pass-
age, and it is so ordained.
15. It is hereby officially found and determined that
the meeting at which this ordinance was passed was open to
the public, and public notice of the time, place and purpose
of said meeting was given, all as required by Article
6252-17, Vernon's Annotated Texas Civil Statutes, as amend-
ed.
16. That upon written request of the Mayor, copy
attached, to find and declare an emergency due to the
33
immediate need for the efficient and effective administra-
tion of City affairs by authorizing the issuance of the
above-mentioned Bonds, such finding of an emergency is made
and declared requiring suspension of the Charter rule as to
consideration and voting upon ordinances or resolutions at
three regular meetings so that this ordinance is passed and
shall take effect upon first reading.
PASSED AND APPROVED this 17th day of January, 1989.
M yor, Cit of Corpus Christi, Texas
City Secretary, City of Corpus
Christi, Texas
APPROVED AS "• FORM AND LEGALITY:
C ty t• ney, C1411751 -Corpus
Christi, Texas
34
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 17th
day of January, 1989, authorizing the issuance of
$16,000,000 City of Corpus Christi, Texas General Improve-
ment Bonds, Series 1989, 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
17th day of January, 1989.
City Secretary, City of Corpus
Christi, Texas
(SEAL)
Corpus Christi, Texas
1 -
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
andass this ordinance or resolution finally on the date it is introduced,
p
or at the present meeting of the City Council.
Respectfully, Respectfully,
Council Members
rY
THE CIY OF CORPUS CHRISTI, TEXAS
The above ordinance was passed by the following vote:
Betty N. Turner
David Berl anga , Sr.
Leo Guerrero
Cl i f Moss
Bill Pruet
Mary Rhodes
Frank Schwi ng , Jr.
Mary Pat Slavik
Linda Strong
99.045.01
20562