HomeMy WebLinkAbout020889 ORD - 03/13/1990THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
On this the 13th day of March, 1990, 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
Clif Moss,
Frank Schwing,
Leo Guerrero,
Edward A. Martin,
Joe McComb,
Tom Hunt,
Mary Rhodes,
Cezar Galindo,
Juan Garza,
Hal George,
Jorge G. Garza,
Armando Chapa,
with the following absent:
quorum, at which time the
transacted:
Mayor,
Councilmembers,
City Manager,
City Attorney,
Director of Finance,
City Secretary,
Edward A. Martin, constituting a
following among other business was
City Manager 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
March 13, 1990
"TO THE CITY COUNCIL
Corpus Christi, Texas
Councilmembers:
"The public importance and pressing need for the issuance of
certificates of obligation to facilitate further financing for
permanent improvements creates an emergency 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 the issuance of
certificates of obligation 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 sub-
ject.
"Yours very truly,
/s/ Betty Turner
Mayor"
MICROFILMED
Councilmember McComb 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 emergency clause of the
ordinance. The motion was seconded by Councilmember Guerrero. The
motion was carried by a unanimous vote by the City Council, viz.:
AYES: All members of the City Council shown present
above voted "Aye".
NAYS: None.
Councilmember McComb moved that the ordinance be passed
finally. The motion was seconded by Councilmember Guerrero. The
motion was carried by the following vote:
AYES: All members of the City Council shown present
above voted "Aye".
NAYS: None.
The Mayor announced that the ordinance had been passed. The
ordinance is as follows:
ORDINANCE NO. 20889
ORDINANCE BY THE CITY COUNCIL
CORPUS CHRISTI, TEXAS, PROVIDING
OF $1,920,000 CITY OF CORPUS
COMBINATION TAX AND REVENUE
OBLIGATION, SERIES 1990; AND
MATTERS RELATING TO THE SUBJECT
OF THE CITY OF
FOR THE ISSUANCE
CHRISTI, TEXAS,
CERTIFICATES OF
ORDAINING OTHER
WHEREAS, on the 13th day of February, 1990, the City
Council of said City passed an ordinance authorizing and
directing notice of its intention to issue the Certificates
of Obligation herein authorized
to be issued, to be pub-
lished in a newspaper as required by Section 271.049 of the
Texas Local Government Code; and
WHERFAS, said notice was published on February 16, 1990
and February 23, 1990 in the Corpus Christi Caller -Times, a
"newspaper" as defined in Article 28a, V.A.T.C.S., as
amended, as required by said Section 271.049 of the Texas
Local Government Code; and
WHEREAS, no petition, signed by 5% of the qualified
electors of said City as permitted by said Section 271.049
of the Texas Local Government Code protesting the issuance
of such Certificates of Obligation, has been filed; and
WHEREAS, the Certificates of Obligation hereinafter
authorized are to be issued and delivered pursuant to
Subchapter C of Chapter 271 of the Texas Local Government
Code;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
Section 1. AUTHORIZATION OF CERTIFICATES OF OBLIGA-
TION. That the Certificates of Obligation to be issued by
the City of Corpus Christi (the "City" or the "Issuer"),
designated the "City of Corpus Christi, Texas, Combination
Tax and Revenue Certificates of Obligation, Series 1990",
are hereby authorized to be issued and delivered in the
principal amount of $1,920,000 for the purpose of providing
part of the funds for paying contractual obligations to be
incurred for the improvement and expansion of the City's
sanitary landfills, the improvement and extension of the
City's sanitary sewer system, and the payment of the
engineering, legal and fiscal services related thereto.
Section 2. DATE, DENOMINATIONS, NUMBERS AND MATURI-
TIES. That said Certificates of Obligation shall initially
be issued, sold and delivered hereunder as fully registered
certificates, without interest coupons, dated March 1, 1990,
in the respective denominations and principal amounts
hereinafter stated, numbered consecutively from One (1)
upward, payable to the respective initial registered owners
thereof (as designated in Section 16 hereof), or to the
registered assignee or assignees of said certificates or any
portion or portions thereof (in each case, the "Registered
Owner"), and said certificates shall mature and be payable
on March 1 in the years and amounts as set forth below, to -
wit:
2
'EAR PRINCIPAL AMOUNT
1991 $335,000
1992 360,000
1993 380,000
1994 410,000
1995 435,000
The term "Certificates" as used in this Ordinance shall mean
and include collectively the Certificates of Obligation
initially issued and delivered pursuant to this Ordinance
and all substitute Certificates of Obligation exchanged
therefor, as well as all other substitute Certificates of
Obligation and replacement Certificates of Obligation issued
pursuant hereto, and the term "Certificate" shall mean any
of the Certificates.
Section 3. REDEMPTION. That said Certificates of
Obligation shall not be subject to optional redemption prior
to their scheduled maturities.
Section 4. INTEREST. That the Certificates shall bear
interest from the date specified in the FORM OF CERTIFICATE
set forth in this Ordinance to their respective dates of
maturity at the following rates per annum:
maturities 1991, 8.35%
maturities 1992, 6.90%
maturities 1993, 6.35%
maturities 1994, 6.40%
maturities 1995, 6.50%
Said interest shall be payable in the manner provided and on
the dates stated in the FORM OF CERTIFICATE set forth in
this Ordinance.
Section 5. CHARACTERISTICS OF THE CERTIFICATES.
Registration, Transfer, Conversion and Exchange; Authenti-
3
cation. (a) That the Issuer shall keep or cause to be kept
at the principal corporate trust office of First City, Texas
- Corpus Christi, Corpus Christi, Texas (the "Paying
Agent/Registrar") books or records for the registration of
the transfer, conversion and exchange of the Certificates
(the "Registration Books"), and the Issuer hereby appoints
the Paying Agent/Registrar as its registrar and transfer
agent to keep such books or records and make such registra-
tions of transfers, conversions and
reasonable regulations
istrar may prescribe;
as the Issuer
and the Paying
make such registrations,
changes as
transfers,
herein provided. The City
nee thereof is hereby authorized
Agent/Registrar Agreement" in such
the City Attorney.
and record in the
registered owner of
exchanges under such
and Paying Agent/Reg-
Agent/Registrar shall
conversions and ex -
Manager or
to execute
the desig-
a "Paying
form as is approved by
The Paying Agent/Registrar shall obtain
Registration Books the address of the
each Certificate to which payments with
respect to the Certificates shall be mailed, as herein
provided; but it shall be the duty of each registered owner
to notify the Paying Agent/Registrar in writing of the
address to which payments shall be mailed, and such interest
payments shall not be mailed unless such notice has been
given. The Issuer shall have the right to inspect the
Registration Books during regular business hours of the
Paying Agent/Registrar, but otherwise the Paying Agent/Reg-
istrar shall keep the Registration Books confidential and,
4
unless otherwise required by law, shall not permit their
inspection by any other entity. The Issuer shall pay the
Paying Agent/Registrar's standard or customary fees and
charges for making such registration, transfer, conversion,
exchange and delivery of a substitute Certificate or Certif-
icates. Registration of assignments, transfers, conversions
and exchanges of Certificates shall be made in the manner
provided and with the effect stated in the FORM OF CERTIFI-
CATE set forth in this Ordinance. Each substitute Certifi-
cate shall bear a letter and/or number to distinguish it
from each other Certificate.
Except as provided in paragraph (b) of this Ordinance,
an authorized representative of the Paying Agent/Registrar
shall, before the delivery of any such Certificate, date and
manually sign said Certificate, and no such Certificate
shall be deemed to be issued or outstanding unless such
Certificate is so executed. The Paying Agent/Registrar
promptly shall cancel all paid Certificates and Certificates
surrendered for conversion and exchange. No additional
ordinances, orders or resolutions need be passed or adopted
by the governing body of the Issuer or any other body or
person so as to accomplish the foregoing conversion and
exchange of any Certificate or portion thereof, and the
Paying Agent/Registrar shall provide for the printing,
execution and delivery of the substitute Certificates in the
manner prescribed herein, and said Certificates shall be of
type composition printed on paper with lithographed or steel
5
engraved borders of customary weight and strength. Pursuant
to Vernon's Ann. Tex. Civ. St. Art. 717k-6, and particularly
Section 6 thereof, the duty of conversion and exchange of
Certificates as aforesaid is hereby imposed upon the Paying
Agent/Registrar, and, upon the execution of said Certifi-
cate, the converted and exchanged Certificate shall be
valid, incontestable and enforceable in the same manner and
with the same effect as the Certificates which initially
were issued and delivered pursuant to this Ordinance,
approved by the Attorney General, and registered by the
Comptroller of Public Accounts.
(b) Payment of Certificates and Interest. The Issuer
hereby further appoints the Paying Agent/Registrar to act as
the paying agent for paying the principal of and interest on
the Certificates, all as provided in this Ordinance. The
Paying Agent/Registrar shall keep proper records of all
payments made by the Issuer and the Paying Agent/Registrar
with respect to the Certificates.
(c) In General. The Certificates (i) shall be issued
in fully registered form, without interest coupons, with the
principal of and interest on such Certificates to be payable
only to the registered owners thereof, (ii) may be converted
and exchanged for other Certificates, (iii) may be trans-
ferred and assigned, (iv) shall have the characteristics,
(v) shall be signed, sealed, executed and authenticated,
(vi) the principal of and interest on the Certificates shall
be payable, (vii) may be subject to redemption prior to
6
scheduled maturity, and (viii) shall be administered and the
Paying Agent/Registrar and the Issuer shall have certain
duties and responsibilities with respect to the
Certificates, all as provided, and in the manner and to the
effect as required or indicated, in the FORM OF CERTIFICATE
set forth in this Ordinance. The Certificates initially
issued and delivered pursuant to this Ordinance are not
required to be, and shall not be, authenticated by the
Paying Agent/Registrar, but on each substitute Certificate
issued in conversion of and exchange for any Certificate or
Certificates issued under this Ordinance the Paying
Agent/Registrar shall execute the PAYING AGENT/REGISTRAR'S
AUTHENTICATION CERTIFICATE, in the form set forth in the
FORM OF CERTIFICATE.
(d) Substitute Paying Agent/Registrar. The Issuer
covenants with the registered owners of the Certificates
that at all times while the Certificates are outstanding the
Issuer will provide a competent and legally qualified bank
or trust company to act as and perform the services of
Paying Agent/Registrar for the Certificates under this
Ordinance, and that the Paying Agent/Registrar will be one
entity. The Issuer reserves the right to, and may, at its
option, change the Paying Agent/Registrar upon not less than
120 days written notice to the Paying Agent/Registrar, to be
effective not later than 60 days prior to the next principal
or interest payment date after such notice. In the event
that the entity at any time acting as Paying Agent/Registrar
7
(or its successor by merger, acquisition or other method)
should resign or otherwise cease to act as such, the Issuer
covenants that promptly it will appoint a competent and
legally qualified bank, trust company, financial institu-
tion, or other agency to act as Paying Agent/Registrar 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
records relating to the Certificates, to the new Paying
Agent/Registrar designated and appointed by the Issuer.
Upon any change in the Paying Agent/Registrar, the Issuer
promptly will cause a written notice thereof to be sent by
the new Paying Agent/Registrar to each registered owner of
the Certificates, by United States Mail, first-class 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.
Section 6. FORM OF CERTIFICATES. That the form of the
Certificates, including the form of Paying Agent/Registrar's
Authentication Certificate, the form of Assignment and the
form of Registration Certificate of the Comptroller of
Public Accounts of the State of Texas to be attached to the
Certificates initially issued and delivered pursuant to this
8
Ordinance, shall be, respectively, substantially as follows,
with such appropriate variations, omissions, or insertions
as are permitted or required by this Ordinance.
FORM OF CERTIFICATE
NO.
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI, TEXAS
COMBINATION TAX AND REVENUE
CERTIFICATE OF OBLIGATION
SERIES 1990
MATURITY DATE INTEREST RATE ORIGINAL ISSUE DATE CUSIP
March 1, 1990
ON THE MATURITY DATE specified above, THE CITY OF COR-
PUS CHRISTI, TEXAS (the "Issuer"), being a political subdi-
vision of the State of Texas, hereby promises to pay to
(hereinafter called the "registered
owner") the principal amount of
DOLLARS
and to pay interest thereon from the Original Issue Date
specified above, on September 1, 1990, and semiannually on
each March 1 and September 1 thereafter to the maturity date
specified above, at the interest rate per annum specified
above; except that if this Certificate is required to be au-
thenticated and the date of its authentication is later than
September 1, 1990, such principal amount shall bear interest
from the interest payment date next preceding the date of
authentication, unless such date of authentication is after
any Record Date (hereinafter defined) but on or before the
next following interest payment date, in which case such
principal amount shall bear interest from such next follow -
9
ing interest payment date; provided, however, that if on the
date of authentication hereof the interest on the Certifi-
cate or Certificates, if any, for which this Certificate is
being exchanged or converted from is due but has not been
paid, then this Certificate shall bear interest from the
date to which such interest has been paid in full.
THE TERMS AND PROVISIONS of this Certificate are con-
tinued on the reverse side hereof and shall for all purposes
have the same effect as though fully set forth at this
place.
*THE PRINCIPAL OF AND INTEREST ON this Certificate are
payable in lawful money of the United States of America,
without exchange or collection charges. The principal of
this Certificate shall be paid to the registered owner here-
of upon presentation and surrender of this Certificate at
maturity at the principal
corporate trust office of
City, Texas - Corpus Christi, Corpus Christi, Texas,
is the "Paying Agent/Registrar" for this Certificate.
First
which
The
payment of interest on this Certificate shall be made by the
Paying Agent/Registrar to the registered owner hereof on
each interest payment date by check or draft, dated as of
such interest payment date, drawn by the Paying Agent/Regis-
trar on, and payable solely from, funds of the Issuer re-
quired by the ordinance authorizing the issuance of this
Certificate (the "Certificate Ordinance") to be on deposit
with the Paying Agent/Registrar for such purpose as herein-
after provided; and such check or draft shall be sent by the
10
Paying Agent/Registrar by United States mail, first-class
postage prepaid, on each such interest payment date, to the
registered owner hereof, at its address as it appeared on
the fifteenth business day of the month preceding such
interest payment date (the "Record Date") on the
Registration Books kept by the Paying Agent/Registrar, as
hereinafter described. Any accrued interest due at maturity
shall be paid to the registered owner upon presentation and
surrender of this Certificate for payment at the principal
corporate trust office of the Paying Agent/Registrar. The
Issuer covenants with the registered owner of this Certifi-
cate that on or before each principal payment date, interest
payment date, and accrued interest payment date for this
Certificate it will make available to the Paying Agent/Reg-
istrar, from the "Interest and Sinking Fund" created by the
Certificate Ordinance, the amounts required to provide for
the payment, in immediately available funds, of all princi-
pal of and interest on the Certificates, when due.
*IF THE DATE for the payment of the principal of or in-
terest on this Certificate shall be a Saturday, Sunday, a
legal holiday, or a day on which banking institutions in the
city where the principal corporate trust office of the Pay-
ing Agent/Registrar is located are authorized by law or ex-
ecutive order to close, or the United States Postal Service
is not open for business, then the date for such payment
shall be the next succeeding day which is not such a Satur-
day, Sunday, legal holiday, or day on which banking institu-
11
tions are authorized to close, or the United States Postal
Service is not open for business; and payment on such date
shall have the same force and effect as if made on the orig-
inal date payment was due.
*THIS CERTIFICATE is one of a Series of Certificates
(the "Certificates") dated the Original Issue Date specified
above, authorized in accordance with the Constitution and
laws of the State of Texas in the principal amount of
$1,920,000, FOR THE PURPOSE OF PROVIDING PART OF THE FUNDS
FOR PAYING CONTRACTUAL OBLIGATIONS TO BE INCURRED FOR THE
IMPROVEMENT AND EXPANSION OF THE ISSUER'S SANITARY
LANDFILLS, THE IMPROVEMENT AND EXTENSION OF THE ISSUER'S
SANITARY SEWER SYSTEM, AND THE PAYMENT OF THE ENGINEERING,
LEGAL AND FISCAL SERVICES RELATED THERETO.
*THIS CERTIFICATE 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 Issuer
kept by the Paying Agent/Registrar acting in the capacity of
registrar for the Certificates, upon the terms and condi-
tions set forth herein and in the Certificate Ordinance.
This Certificate may only be assigned and transferred upon
presentation and surrender to the Paying Agent/Registrar for
transfer of registration and cancellation, together with
proper instruments of assignment, in form and with guarantee
of signatures satisfactory to the Paying Agent/Registrar,
evidencing assignment of this Certificate or any portion or
portions hereof to the assignee or assignees in whose name
12
or names this Certificate or any such portion or portions
hereof is or are to be transferred and registered. The form
of Assignment printed or endorsed on this Certificate shall
be executed by the registered owner, or its duly authorized
attorney or representative, and shall conclusively evidence
the assignment hereof. Upon surrender of this Certificate
or any portion or portions hereof for transfer of registra-
tion, an authorized representative of the Paying Agent/Reg-
istrar shall make such transfer in the Registrations Books,
and shall deliver a new Certificate or Certificates payable
to such assignee or assignees, or to the registered owner
hereof in the case of the assignment and transfer of only a
portion of this Certificate, in exchange for this Certifi-
cate, all in the form and manner as provided in the next
paragraph hereof for the conversion and exchange of Certif-
icates. The registered owner of this Certificate shall be
deemed and treated by the Issuer and the Paying Agent/Regis-
trar as the absolute owner hereof for all purposes, includ-
ing payment and discharge of liability upon this Certificate
to the extent of such payment, and the Issuer and the Paying
Agent/Registrar shall not be affected by any notice to the
contrary.
*ALL CERTIFICATES OF THIS SERIES issued as a result of
a transfer, conversion or exchange are issuable solely as
fully registered certificates, without interest coupons, in
the denomination of any integral multiple of $5,000. In ac-
cordance with the form and procedures set forth in the Cer-
13
tificate Ordinance, this Certificate may, at the written re-
quest of the registered owner or the assignee or assignees
hereof, or its or their duly authorized attorneys or repre-
sentatives, with guarantee of signatures satisfactory to the
Paying Agent/Registrar, be converted into and exchanged for
a Certificate or Certificates of like aggregate principal
amount, payable to the appropriate registered owner, assig-
nee, 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, upon surrender of this Certificate to
the Paying Agent/Registrar at its principal corporate trust
office for cancellation. The one requesting a transfer,
conversion, or exchange shall pay any taxes or governmental
charges required to be paid with respect thereto as a condi-
tion precedent to the exercise of such privilege of trans-
fer, conversion or exchange.
*IN THE EVENT any Paying Agent/Registrar for the Cert-
ificates is changed by the Issuer, resigns, or otherwise
ceases to act as such, the Issuer has covenanted in the Cer-
tificate Ordinance that it promptly will appoint a competent
and legally qualified substitute therefor, and cause written
notice thereof to be mailed to the registered owners of the
Certificates.
*BY BECOMING the registered owner of this Certificate,
the registered owner thereby acknowledges all of the terms
and provisions of the Certificate Ordinance, agrees to be
14
bound by such terms and provisions, acknowledges that the
Certificate Ordinance is duly recorded and available for in-
spection in the official minutes and records of the Issuer,
and agrees that the terms and provisions of this Certificate
and the Certificate Ordinance constitute a contract between
each registered owner hereof and the Issuer.
IT IS HEREBY certified, recited and covenanted that
this Certificate has been duly and validly authorized, is-
sued, and delivered; that all acts, conditions, and things
required or proper to be performed, exist, and be done pre-
cedent to or in the authorization, issuance, and delivery of
this Certificate have been performed, existed, and been done
in accordance with law; that this Certificate is a direct
obligation of said Issuer, issued on the full faith and
credit thereof; that annual ad valorem taxes sufficient to
provide for the payment of the interest on and principal of
this Certificate, as such interest comes due and such prin-
cipal matures, have been levied and ordered to be levied
against
pledged
all taxable property in said Issuer, and have been
for such payment, within the limit prescribed by
law; and that surplus revenues of the Issuer's Solid Waste
System, after payment of all operation and maintenance ex-
penses thereof, and all other obligations now or hereafter
payable therefrom, have been pledged as additional security
for the Certificates.
IN WITNESS WHEREOF, the Issuer has caused this Cert-
ificate to be signed with the manual or facsimile signature
15
of the Mayor of the City and countersigned with the manual
or facsimile signature of the Cit;: Secretary of the City,
and has caused the official seal of the City to be dull
impressed, or placed in facsimile, on this Certificate.
xxxxx xxxxxx
City Secretary, City of Mayor, City of Corpus Christi,
Corpus Christi, Texas Texas
(SEAL)
FORM OF PAYING AGENT/REGISTRAR'S AU'HENTICATION CERTIFICATE
PA{ING AGENT/RE:-ISTRAR'S AUTHENTICATIuN CERTIFICATE
It iE hereby certified that this Certificate of
Obl',ation ias been issued under the provisions of the
Ordinance scribed on the face of this Certificate of
Cbligati'n; and that this Certificate of Obligation has been
issued in exchange for or replacement of a certificate of
obligation, certificates of cThgation, or a portion of a
certificate of obligation or certificates of obligation of
an issue which originally was approved by the Attorney
General of the State of Texas and registered by the
Comptroller of Public Accounts cf the State of Texas.
Dated
First City, Texas - Corpus Christi,
Corpus Christi, Texas
Paying Agent/Registrar
By
Authorized Representative
FORM OF ASSIGNMENT:
ASSIGNMENT
FOR VALUE RECEIVED, the undo signed hereby sells,
assigns and transfers unto
16
(Please insert Social Security or Taxpayer Identification
Number of Transferee)
(Please print or typewrite name and address, including
zip code of Transferee)
the within Certificate of Obligation and all rights
thereunder, and hereby irrevocably constitutes and appoints
attorney to register the transfer of the within Certificate
of Obligation on 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
Certificate of Obligation in
every particular, without
alteration or enlargement or
any change whatsoever.
**FORM OF COMPTROLLER'S CERTIFICATE ATTACHED TO
THE CERTIFICATES UPON INITIAL DELIVERY THEREOF
OFFICE OF COMPTROLLER .
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
REGISTER NO.
of Texas to the effect that this Certificate has been exam-
ined 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
obligation of the City of Corpus Christi, Texas, payable in
the manner provided by and in the ordinance authorizing
17
same, and said Certificate has this day been registered by
me.
this
WITNESS MY HAND and seal of office at Austin, Texas
Comptroller of Public Accounts of
(SEAL) the State of Texas
NOTE TO PRINTER:
*Qs to be on reverse side of certificate
**Q not to be on certificate
Section 7. DEFINITIONS. That the terms "Certifi-
cates", "Certificates of Obligation" shall mean the City of
Corpus Christi, Texas, Combination Tax and Revenue Certifi-
cates of Obligation, Series 1990 authorized to be issued and
delivered by this Ordinance, and the term "Code" shall mean
the Internal Revenue Code of 1986, and any amendment
thereto.
Section 8. INTEREST AND SINKING FUND. (a) That a spe-
cial fund or account, to be designated the "City of Corpus
Christi, Texas Series 1990 Certificate of Obligation In-
terest and Sinking Fund" is hereby created and shall be es-
tablished and maintained by the City at its official deposi-
tory. Said Interest and Sinking Fund shall be kept sepa-
rate 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 Certificates. Any accrued interest de-
rived from the sale of the Certificates shall be deposited
to the credit of said Interest and Sinking Fund. All ad
valorem taxes levied and collected for and on account of
18
said Certificates shall be deposited, as collected, to the
credit of said Interest and Sinking Fund. During each year
while any of said Certificates are outstanding and unpaid,
the governing body 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 the cost of tax collections,
which will be sufficient to raise and produce the money re-
quired to pay the interest on said Certificates as such in-
terest comes due, and to provide a sinking fund to pay the
principal of said Certificates as such principal matures,
but never less than 2% of the original amount of said Cer-
tificates as a sinking fund each year. Said rate and amount
of ad valorem tax is hereby ordered to be levied against all
taxable property in said City for each year while any of
said Certificates 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 Certificates, as such in-
terest comes due and such principal matures, are hereby
pledged for such payment, within the limit prescribed by
law.
(b) The City shall transfer from the City's General
Fund such amounts, to the extent necessary, and cause such
amounts to be deposited into the Interest and Sinking Fund
19
for the purpose of paying, when due, the first scheduled
payment of interest on the Certificates.
Section 9. REVENUES. That the Certificates of Obliga-
tion are additionally secured by and shall be payable from
and secured by the revenues of the Issuer's Solid Waste Sys-
tem remaining after payment of all maintenance and opera-
tion expenses thereof, and all other obligations now or
hereafter payable therefrom, constituting "Surplus Reve-
nues". The Issuer shall deposit such Surplus Revenues to
the credit of the Interest and Sinking Fund created pursuant
to Section 8, to the extent necessary to pay the principal
and interest on the Certificates of Obligation. Notwith-
standing the requirements of Section 8, if Surplus Revenues
are actually on deposit or budgeted for deposit in the In-
terest and Sinking Fund in advance of the time when ad
valorem taxes are scheduled to be levied for any year, then
the amount of taxes which otherwise would have been required
to be levied pursuant to Section 8 may be reduced to the ex-
tent and by the amount of the Surplus Revenues then on de-
posit in the Interest and Sinking Fund or budgeted for de-
posit herein.
Section 10. TRANSFER. That the City shall do any and
all things necessary to accomplish the transfer of monies to
the Interest and Sinking Fund of this issue in ample time to
pay such items of principal and interest.
Section 11. SECURITY FOR FUNDS. That the Interest and
Sinking Fund created by this Ordinance shall be secured in
20
the manner and to the fullest extent permitted or required
by law for the security of public funds, and such Fund shall
be used only for the purposes and in the manner permitted or
required by this Ordinance.
Section 12. DEFEASANCE OF CERTIFICATES. (a) That any
Certificate and the interest thereon shall be deemed to be
paid, retired, and no longer outstanding (a "Defeased Cer-
tificate") within the meaning of this Ordinance, except to
the extent provided in subsection (d) of this Section 12,
when payment of the principal of such Certificate, plus in-
terest thereon to the due date (whether such due date be by
reason of maturity or otherwise) either (i) shall have been
made or caused to be made in accordance with the terms
thereof, or (ii) shall have been provided for on or before
such due date by irrevocably depositing with or making
available to the Paying Agent/Registrar for such payment (1)
lawful money of the United States of America sufficient to
make such payment or (2) Government Obligations which mature
as to principal and interest in such amounts and at such
times as will insure the availability, without reinvestment,
or sufficient money to provide for such payment, and when
proper arrangements have been made by the City with the Pay-
ing Agent/Registrar for the payment of its services until
all Defeased Certificates shall have become due and payable.
At such time as a Certificate shall be deemed to be a
Defeased Certificate hereunder, as aforesaid, such Certifi-
cate and the interest thereon shall no longer be secured by,
21
payable from, or entitled to the benefits of, the ad valorem
taxes herein levied and the Pledged Revenues herein pledged
as provided in this Ordinance, and such principal and inter -
est shall be payable solely from such money or Government
Obligations.
(b) Any moneys so deposited with the Paying Agent/Reg-
istrar may at the written direction of the City also be in-
vested in Government Obligations, maturing in the amounts
and times as hereinbefore set forth, and all income from
such Government Obligations received by the Paying Agent/
Registrar which is not required for the payment of the Cer-
tificates and interest thereon, with respect to which such
money has been so deposited, shall be turned over to the
City, or deposited as directed in writing by the City.
(c) The term "Government Obligations" as used in this
Section 12, shall mean direct obligations of the United
States of America, including obligations the principal of
and interest on which are unconditionally guaranteed by the
United States of America, which may be United States Treas-
ury obligations such as its State and Local Government Se-
ries, which may be in book-entry form.
(d) Until all Defeased Certificates shall have become
due and payable, the Paying Agent/Registrar shall perform
the services of Paying Agent/Registrar for such Defeased
Certificates the same as if they had not been defeased, and
the City shall make proper arrangements to provide and pay
for such services as required by this Ordinance.
22
Section 13. DAMAGED, MUTILATED, LOST, STOLEN, OR DE-
STROYED CERTIFICATES. (a) Replacement Certificates. That
in the event any outstanding Certificate is damaged, muti-
lated, lost, stolen, or destroyed, the Paying
Agent/Registrar shall cause to be printed, executed, and de-
livered, a new certificate of the same principal amount, ma-
turity, and interest rate, as the damaged, mutilated, lost,
stolen, or destroyed Certificate, in replacement for such
Certificate in the manner hereinafter provided.
(b) Application for Replacement Certificates. That
application for replacement of damaged, mutilated, lost,
stolen, or destroyed Certificates shall be made by the reg-
istered owner thereof to the Paying Agent/Registrar. In ev-
ery case of loss, theft, or destruction of a Certificate,
the registered owner applying for a replacement certificate
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 re-
spect thereto. Also, in every case of loss, theft, or de-
struction of a Certificate, the registered owner shall fur-
nish to the City and to the Paying Agent/Registrar evidence
to their satisfaction of the loss, theft, or destruction of
such Certificate, as the case may be. In every case of dam-
age or mutilation of a Certificate, the registered owner
shall surrender to the Paying Agent/Registrar for cancella-
tion the Certificate so damaged or mutilated.
23
(c) No Default Occurred. That notwithstanding the
foregoing provisions of this Section, in the event any such
Certificate shall have matured, and no default has occurred
which is then continuing in the payment of the principal of
or interest on this Certificate, the City may authorize the
payment of the same (without surrender thereof except in the
case of a damaged or mutilated Certificate) instead of issu-
ing a replacement certificate, provided security or indemni-
ty is furnished as above provided in this Section.
(d) Charge for Issuing Replacement Certificates. That
prior to the issuance of any replacement certificate, the
Paying Agent/Registrar shall charge the registered owner of
such Certificate with all legal, printing, and other expens-
es in connection therewith. Every replacement certificate
issued pursuant to the provisions of this Section by virtue
of the fact that any Certificate is lost, stolen, or de-
stroyed shall constitute a contractual obligation of the
City whether or not the lost, stolen, or destroyed Certifi-
cate shall be found at any time, or be enforceable by any-
one, and shall be entitled to all the benefits of this Ordi-
nance equally and proportionately with any and all other
Certificates duly issued under this Ordinance.
(e) Authority for Issuing Replacement Certificates.
That in accordance with Section 6 of Vernon's Ann. Tex. Civ.
St. Art. 717k-6, this Section of this Ordinance shall con-
stitute authority for the issuance of any such replacement
certificate without necessity of further action by the City
24
or any other body or person, and the duty of the replacement
of such certificates is hereby authorized and imposed upon
the Paying Agent/Registrar, and the Paying Agent/Registrar
shall authenticate and deliver such Certificates in the form
and manner and with the effect, as provided in Section 5(a)
of this Ordinance for Certificates issued in conversion and
exchange of other Certificates.
Section 14. COVENANTS REGARDING TAX EXEMPTION. That
the City covenants to refrain from any action which would
adversely affect, or to take such action as to ensure, the
treatment of the Certificates of Obligation as obligations
described in Section 103 of the Code, the interest on which
is not includable in the "gross income" of the holder for
purposes of federal income taxation. In furtherance there-
of, the City covenants as follows:
(a) to take any action to assure that no more
than 10 percent of the proceeds of the Certificates of
Obligation (less amounts deposited to a reserve fund,
if any) are used for any "private business use," as de-
fined 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 Certif-
25
icates of Obligation, 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 sub-
section (a) hereof exceeds 5 percent of the proceeds of
the Certificates of Obligation (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 gov-
ernmental use;
(c) to take any action to assure that no amount
which is greater than the lesser of $5,000,000, or five
percent of the proceeds of the Certificates of Obliga-
tion (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 Certificates of Obligation be-
ing 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 Certificates of Obligation being "feder-
ally guaranteed" within the meaning of section 149(b)
of the Code;
26
(f) to refrain from using any portion of the pro-
ceeds of the Certificates of Obligation, 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 produces a materially higher yield over the term
of the Certificates of Obligation, other than invest-
ment property acquired with --
(1) proceeds of the Certificates of Obliga-
tion invested for a reasonable temporary period of
three 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
certificates of obligation 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 re-
quired reserve or replacement fund to the extent
such amounts do not exceed 10 percent of the pro-
ceeds of the Certificates of Obligation;
(g) to otherwise restrict the use of the proceeds
of the Certificates of Obligation or amounts treated as
proceeds of the Certificates of Obligation, as may be
necessary, so that the Certificates of Obligation do
not otherwise contravene the requirements of Section
148 of the Code (relating to arbitrage) and, to the ex -
27
tent 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 Certificates of Obligation)
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 Certificates of Obli-
gation have been paid in full, 100 percent of the
amount then required to be paid as a 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 Certificates of Obliga-
tion.
It is the understanding of the City that the covenants con-
tained 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 Certificates of Obligation, the City will not be re-
quired to comply with any covenant contained herein to the
extent that such modification or expansion, in the opinion
28
of nationally -recognized bond counsel, will not adversely
affect the exemption from federal income taxation of inter-
est on the Certificates of Obligation 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 Certificates of Obligation, the
City agrees to comply with the additional requirements to
the extent necessary, in the opinion of nationally -recog-
nized bond counsel, to preserve the exemption from federal
income taxation of interest on the Certificates of Obliga-
tion under Section 103 of the Code.
Section 15. CUSTODY, APPROVAL, AND REGISTRATION OF
CERTIFICATES. That the Mayor of the City is hereby author-
ized to have control of the Certificates initially issued
and delivered hereunder and all necessary records and pro-
ceedings pertaining to the Certificates pending their deliv-
ery and their investigation, examination, and approval by
the Attorney General of the State of Texas, and their regis-
tration by the Comptroller of Public Accounts of the State
of Texas. Upon registration of the Certificates said Comp-
troller of Public Accounts (or a deputy designated in writ-
ing to act for said Comptroller) shall manually sign the
Comptroller's Registration Certificate attached to such Cer-
tificates, and the seal of said Comptroller shall be im-
pressed, or placed in facsimile, on such Comptroller's Reg-
istration Certificate.
29
Section 16. SALE. That the sale of the Certificates
of Obligation to Lovett Underwood Neuhaus & Webb, Inc. (the
"Purchaser"), at a price of par and accrued interest on the
Certificates of Obligation to the date of delivery, is here-
by authorized, ratified and confirmed. One Certificate of
Obligation in the principal amount maturing on each matu-
rity date as set forth in Section 2 hereof shall be deliv-
ered
right
vided
to the Purchaser,
to exchange such
and the Purchaser
Certificates of
shall have the
Obligation as pro -
in Section 5 hereof without cost.
Section 17. APPROVAL OF OFFERING DOCUMENTS.
Official Notice of Sale, Official Bid Form, and an
Statement, prepared and distributed in connection
That the
Official
with the
sale of the Certificates of Obligation, in substantially the
form attached hereto, are hereby approved by the City Coun-
cil, and their use in the offer and sale of the Certificates
of Obligation is hereby approved.
Section 18. PREAMBLE. The findings and preambles set
forth in this Ordinance are hereby incorporated into this
Ordinance and made a part hereof for all purposes.
Section 19. PUBLIC NECESSITY. That the fact that the
contemplated construction of public improvements is
necessary for the orderly development and growth of the City
creates a public emergency and an imperative public
necessity requiring the suspension of the Charter rule
providing that no ordinance shall be passed finally on the
date it is introduced and that such ordinance shall be
30
date it is introduced and that such ordinance shall be
considered and voted upon at three regular 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.
ADOPTED this 13th d y of March, 1990.
1�L (iLGY.L
Mayor, Ci y of Corpus Christi, Texas
ATTEST:
City Secretary, City of Corpus Christi, Texas
(SEAL)
APPROVED
FORM AND LEGALITY:
City Attorney, City o Corpus Christi, Texas
31
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 13th
day of March, 1990, authorizing the issuance of $1,920,000
Combination Tax and Revenue Certificates of Obligation,
Series 1990, 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., art. 6252-17, as amended.
EXECUTED UNDER MY HAND AND SEAL of said City, this the
13th day of March, 1990.
Ar,#,U
City Secretary, City of corpus
Christi, Texas
(SEAL)
GENERAL CE±CIFICATE
THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
We, the undersigned, he-ely officially certify that we
are the Director of Finance and City Secretary, respective-
ly, of the City of Corpus Christi, Texas, and we further
certify as follows:
1. That this certificate is given for the benefit of
the Attorney General of the State of Texas and the pur-
chasers and holders of City of Corpus Christi, Texas
Combination Tax and Revenue Certificates of Obligation,
Series 1990, dated March 1, 1990, in the aggregate principal
amount of $1,920,000 (herein referred to as the "Certifi-
cates of Obligation").
2. That said City is a duly incorporated Home Rule
City, having more than 5000 inhabitants, operating and
existing under the Constitution and laws of the State of
Texas and the duly adopted Home Rule Charter of said City,
which Charter has not been changed or amended since the
ordinance was passed by the City Council authorizing the
issuance of City of Corpus Christi, Texas Combination Tax
and Revenue Certificates of Obligation, Series 1989.
3. That no litigation of any nature has ever been
filed pertaining to, affecting or contesting: (a) the
issuance, delivery, payment, security or validity of the
proposed Certificates of Obligation; (b) the authority of
the officers of said City to issue, execute and deliver the
Certificates of Obligation; or (c) the validity of the
corporate existence, the current Tax Rolls, or the Charter
of said City; and that no litigation is pending pertaining
to, affecting or contesting the boundaries of said City.
4. That each of the following persons is the duly
acting, constituted and qualified officer of the City of
Corpus Christi as herein shown, respectively:
Betty Turner
Clif Moss
Frank Schwing
Leo Guerrero
Tom Hunt
Joe McComb
Edward A. Martin
Mary Rhodes
Cezar Galindo
Juan Garza
Jesus Garza
Hal George
Armando Chapa
Jorge G. Garza
Mayor
Councilmembers
City Manager
Deputy City Manager
City Attorney
City Secretary
Director of Finance
5. That the seal an impression of which appears below
is the corporate seal of said City; that said seal has been
used continuously as such corporate seal for more than forty
years and was duly adopted as the seal of said City by the
City Council of said City; and that since its adoption, no
seal other than said seal has been used as the corporate
seal of said City.
6. That the currently effective ad valorem tax rolls
of said City are those for the year 1989, being the most
recently approved tax rolls of said City; that the City
Council of said City has caused the taxable property in said
City to be assessed as required by law; that the Appraisal
Review Board has equalized and approved the valuation of
taxable property in said City for said year; that the Chief
Appraiser of Nueces County Appraisal District has duly
verified the aforesaid tax rolls, and said Appraisal Review
Board has finally approved the same; and that the valuation
of taxable property in said City, and the aggregate amount
of exemptions, and the net effective taxable value of
taxable property in said City, according to the aforesaid
tax rolls for said year, as delivered to the City Secretary
of said City, and finally approved and recorded by the City
Council of said City, are as follows:
Assessed Value:
(less) Exemptions:
Taxable Values:
$7,109,496,333
$ 911,607,006
$6,197,889,327
7. That Exhibit A, which is attached hereto and made a
part hereof, contains a true and correct schedule showing
the annual requirements of all of the outstanding indebted-
ness of said City payable from taxes, together with the
Certificates of Obligation proposed to be issued by ordi-
nance passed March 13, 1990, as it appears in the official
records of said City.
8. That Exhibit B, which is attached hereto and made
a part hereof, contains a true and correct schedule showing
the statement of income and expenses of the City's Solid
Waste System; and, except with respect to the Certificates
of Obligation, that none of the revenues or income from said
System have been pledged or encumbered to the payment of any
debt or obligation of the City.
SIGNED AND SEALED this the 13th day of March, 1990.
City Secretary
City of Corpus Christi, Texas City of Corpus Christi,
D ctor of Finance
Approved as to, Form:
CiTy Attoi"ney,
City of Corpus Christi, Texas
(SEAL)
Texas
9
a
OLet
EXHIBIT A
09'901'm I6L'121'651
wt OBf'E4C'6 000'529'6 9
396,378 2,316,378 170,466,797 142,876,375 313,343,172
pyp-+W W N V yyV V SV OOO��O{{.W1 yyN�+O 88O Pm fpym
NON ON+�M`NM Fv10 �N000
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08'0 y.0000��pp�ppl X98 dMg.p--4.4 -0 mm
P VN O 0
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O O O O O
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O O N f N N O a O V r W V N+ V O
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EXHIBIT B
Solid Waste System
The Certificates are secured by a pledge of an ad valorem tax on all taxable property within the
City, and the revenues of the City's Solid Waste System remaining after payment of all operating and
maintenance expenses of the System and other obligations now or hereafter payable from the System.
The following table sets forth the net revenues of the Solid Waste System for the past five fiscal years.
Flsal Net
Year Revenues Expenses Revenues
1984-85 $6,710,826 $4,913,000 $1,797,826
1985-86 7,256,185 5,164,150 2,092,035
1986-87 7,619,961 4,954,555 2,665,406
1987-88 7,681,475 5,076,979 2,604,496
1988-89 7,686,895 5,217,269 2,469,626
The above-described pledge is made only to the Certificates. Owners of the Bonds have no right
to demand payment of the Bonds from the surplus revenues of the City's Solid Waste System.
Corpus Christi, Texas
�3 day of
, 19
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause
ordinance an emergency exists requiring suspension o
as to consideration and voting upon ordinances
meetings; I/we, therefore, request that you suspend
and pass this ordinance finally on the date it is
the present meeting of the City Council.
Respectfully, Respectfully,
Council Members
of the foregoing
f the Charter rule
at three regular
said Charter rule
introduced, or at
yL. L-%, �G L� G ��. L
MAYOR 7J
THE CITY OF CORPUS CHRISTI
The above ordinance was passed by the following vote:
Betty N. Turner
Cezar Galindo
Leo Guerrero
Tom Hunt
Edward A. Martin
Joe McComb
Clif Moss
Mary Rhodes
Frank Schwing, Jr.
045