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HomeMy WebLinkAboutMinutes City Council - 04/10/1962 - SpecialPRESENT: Mayor Ben F. McDonald Commissioners: Tom R. Swantner Dr. James L. Barnard J. R. de Leon M. P. Maldonado W. J. Roberts SPECIAL COUNCIL MEETING April 10, 1962 11:00 A.M, City Manager Herbert W. Whitney City Attorney I. M. Singer City Secretary T. Ray Kring • Mayor Ben F. McDonald called the meeting to order. The City Secretary called the roll of those in attendance. Motion by Swantner, seconded by de Leon and passed that the absence of Commissioner Jim Young be excused for cause. Mayor McDonald announced the purpose of the special meeting was to receive proposals on the sale of $2,750,000 General Improvement Bonds and $1,200,000 Waterworks Revenue Bonds, and such other business as may properly come before the Council, and announced that the time for receiving sealed pro- posals was now terminated. Proposals were opened and read on the sale of $1,200,000 First Mort- gage Water Revenue Bonds, Series 1962, from the following: Dallas Union Securities Co., Inc. and Associates; Phelps, Fenn & Co. and Associates; Merrill, Lynch, Pierce, Fenner & Smith, Inc. and Associates; Underwood, Neu- haus & Co., Inc. and Associates; Lehman Brothers and Associates; Goldman, Sachs & Co. and Associates; Rowies, Winston & Co. and Associates; The First Boston Corporation and Associates; F. S. Smithers & Co.; John Nuveen & Co. and Assoc- iates; and Drexel & Co. and Associates. Proposals were opened and read on the sale of $2,750,000 General Im- provement Bonds, Series 1962, from the following: Cruttenden, Podesta & Miller; Phelps, Fenn & Co. and Associates; Drexel & Co. and Associates; Merrill, Lynch, Pierce, Fenner & Smith, Inc. and Associates; Mercantile National Bank and Assoc- iates; Lehman Brothers and Associates; First National Bank in Dallas and Assoc- iates; John Nuveen & Co. and Associates; Harris Trust and Savings Bank and Assoc- iates; Continental Illinois National Bank & Trust Company of Chicago and Assoc- iates; First National City Bank and Associates; Rowles, Winston & Co. and Assoc- iates; and Mellon National Bank & Trust Co. Special Council Meeting April 10, 1962 Page 2 The foregoing proposals were referred to Director of Finance Harold Zick, Assistant City Manager R. Marvin Townsend, and M. E. Allison, Fiscal Agent, for tabulation and recommendation, and a brief recess was declared for this purpose. After a brief recess, Mayor McDonald reconvened the meeting. Director of Finance Zick reported that the most advantageous pro- posals for the City had been received from Drexel & Co. and Associates on the Water Revenue Bonds at an effective interest rate of 3.14575%, and from Mellon National Bank & Trust Co, on the General Obligation Bonds at an effective in- terest rate of 3.03907%; and City Manager Whitney recommended acceptance of these two proposals, and presented and read two ordinances authorizing the fore- going sales of bonds as recommended. (Bid Tabulation#16 in File) Mr. Swantner presented for the consideration of the Council an or- dinance. The ordinance was read by the City Secretary. The Mayor presented to the Council a communication in writing pertaining to said proposed ordin- ance, as follows: "Corpus Christi, Texas, April 10, 1962. TO THE CITY COUNCIL CORPUS CHRISTI, TEXAS Gentlemen: The public importance and pressing need for the permanent improve- ments to be constructed by use of the proceeds of the bonds voted at elections held on October 6, 1956, August 29, 1959 and January 28, 1961, create an emer- gency 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 $2,750,000.00 General Improve- ment Bonds as an emergency. You will please consider this request in connec- tion with the ordinance which has been introduced in the City Council on this subject. Yours very truly, /s/ Ben F. McDonald, Mayor." Commissioner Barnard 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 Commissioner de Leon. The motion was carried by a Unanimous vote by the City Council, viz: Special Council Meeting April 10, 1962 Page 3 AYES: Commissioners Swantner, Barnard, de Leon, Maldonado, and Roberts. NOES: None. ABSr1Nr: Commissioner Young. The Mayor requested that the records show that he voted Aye. This was done. Commissioner Roberts moved that the ordinance be passed finally. The motion was seconded by Commissioner Maldonado. The motion was carried by the following vote: AYES: Commissioners Swantner, Barnard, de Leon, Maldonado, and Roberts. was done. NOES: None. ABSENT: Commissioner Young. The Mayor requested that the records show that he voted Aye. This The Mayor announced that the ordinance had been passed. The ordin- ance is as follows: ORDINANCE NO. 6480 BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, PROVIDING FOR THE ISSUANCE OF $2,750,000.00 CITY OF CORPUS CHRISTI, TEXAS, GENERAL IMPROVEMENT BONDS, SERIES 1962, BEARING INTEREST AT THE RATES HEREINAFTER SET FORTH, AND PROVIDING FOR THE LEVY, ASSESSMENT AND COT,T,F;CTION 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 AND DECLAR- ING AN EMERGENCY.' Mr. Swantner presented for the consideration of the Council an ordin- ance. 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, April 10, 1962. TO THE CITY COUNCIL CORPUS CHRISTI, TEXAS Gentlemen: For the reasons set forth in the emergency clause of the foregoing or- dinance, a public emergency and imperative necessity exist for the suspension of the Charter rule or requirement that no ordinance or resolution shall be passed finally on the date it is introduced, and that such ordinance or resolution shall be read at three meetings of the City Council, I, therefore, hereby request that • • Special Council Meeting April 10, 1962 Page 4 you suspend said Charter rule or requirement and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, /8/ Ben F. McDonald, Mayor." Commissioner Barnard moved that the Charter provision prohibiting or- dinances 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 vas seconded by Commissioner de Leon. The motion was carried by the unanimous vote of the City Council, viz: AYES: Commissioners Swantner, Barnard, de Leon, Maldonado, and Roberts. NOES: None. ABSENT: Commissioner Young. The Mayor requested that the records show that he voted Aye. This was done. Commissioner Roberts moved that the ordinance be passed finally. The motion was seconded by Commissioner Maldonado. The motion was carried by the following vote: AYES: Commissioners Swantner, Barnard, de Leon, Maldonado, and Roberts. NOES: None. ABSENT: Commissioner Young. The Mayor requested that the records show that he voted Aye. This was done. The Mayor announced that the ordinance had been passed. The ordinance is as follows: ORDINANCE NO. 6481 AUTHORIZING THE ISSUANCE OF FIRST MORTGAGE WATERWORKS REVENUE BONDS IN THE AMOUNT OF $1,200,000.00, FOR THE PURPOSE OF IMPROVING AND EXTENDING THE WATERWORKS SYS- TEM; PLEDGING THE NET REVENUES OF THE CITY'S WATERWORKS SYSTEM; AUTHORIZING THE EXECUTION AND DELIVERY OF A DEED OF TRUST FURTHER SUPPLEMENTING THE DEED OF TRUST SECURING CITY OF CORPUS CHRISTI FIRST MORTGAGE WATERWORKS REVENUE REFUNDING BONDS, SERIES 1953, SUCH SUPPLEMENTAL DEED OF TRUST PROVIDING THA SECURITY FOR THE BONDS AUTHORIZED BY THIS ORDINANCE; ORDAINING OTHER MATTERS RELATING TO THE SUBJECT AND DECLARING AN EMERGENCY. Special Council Meeting April 10, 1962 Page 5 Fiscal Agent Allison suggested that the good faith checks of the un- successful bidders be returned at this time, and Mayor McDonald hearing no ob- jections from the Council, so ordered, and it was done. There being no further business to come before the Council, Mayor McDonald declared the special meeting adjourned. • THE STATE OF TEXAS COUNTY OE NUECES NOTICE OF SPECIAL MEETING • CITS;. OF CORDS CHRISTI TO THE MUIBMRS OF THE CITY COUNCIL, TEE CITY MANAGER, "MI CITY SECRETARY ART) TEE CITY ATTORNEY TO THE CIS OF CORPUS CHRISTI, TEXAS: 1I0TICE is hereby given that a special meeting of the City Council of the City of Corpus Christi, Texas, will be held in. the City of Corpus Christi, Texas, i1. the Cuuncjl Chamber of the City Hall, at 11:00 o'clock A. M. on the 10 day of April a 1962 , for the purpose of receiving proposals on sale of $2,750,000 General Improvement Bonds and $1,200,000 Water Revenue Bonds, and such other business as may properly come before the Council. QED this the 10 day of April , 19 62. .,N F. MC DONALD, Mayor City of Corpus Christi, Texas CONSENT TO MEETING We, the undersigned members of the City Council, the City Manager, the City Secretary anal. the City Attorney of Corpus Christi, Texas, hereby accept service of the foregoing notice, waiving any and all irregularities in such service and consent and agree that said meeting shall be at the time and place therein named and for the purpose therein stated. TOM R.AR' EE HEr ERT W. WWF City Manager JIM YOUNG • I. SING / City Attorney T. R� KRI1 .f City Secretary /'