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HomeMy WebLinkAboutORD 62-DDC9.1tct' 6 -L0 4) J AN ORDINANCE ACCEPTING PROPOSAL TO PURCHASE CERTAIN OUTSTANDING TAX BONDS OF CITY OF BEAUMONT AND TO SURRENDER SUCH BONDS FOR REFUNDING INTO REFUNDING BO .S OF SAID CITY; CON- FIRMING AND RATIFYING APPROPRIATION OF MONEYS FOR PAY- MENT OF INTEREST FALLING DUE ON SUCH OUTSTANDING BONDS UNTIL THEY ARE SO REFUNDED; CONTAINING OTHER PROVI- SIONS RELATING TO THE SUBJECT; AND PROVIDING THAT THIS ORDINANCE SHALL TAKE EFFECT FROM AND AFTER ITS PASSAGE THE STATE OF TEXAS § COUNTY OF JEFFERSON § The City Council of the City of Beaumont, Texas, convened in. session at the City Hall within said City on the ��e-7A day of 1961, with the following members present, to -wit: C . H . LeBlanc Mayor Jack M. Moore W. W. Leach Earl L. Patton Rolfe Christopher Jas. T. Garrard Councilman, Ward No. 1 Councilman, Ward No. 2 Councilman, Ward No. 3 Councilman, Ward No. 4 City Clerk and the following member(s) absent, to -wit: ��/Q �✓�= , when, among other business had, the following was transacted: The Mayor introduced an ordinance which was read in full. Councilman /_ C= I e- i 4 made a motion that the ordinance be adopted as read. Councilman seconded the motion for adoption of the ordinance. The motion, carrying with it the adoption of the ordinance, prevailed by the following vote: AYES: Councilmen Moore, Leach, Patton, Christopher and Mayor LeBlanc. NOES: None. The Mayor thereupon announced that the motion had duly and .awfully carried and that the ordinance had been duly and lawfully adopted. The ordinance thus adopted follows: d • • r y • y • - AN ORDINANCE ACCEPTING PROPOSAL TO PURCHASE CERTAIN OUTSTANDING TAX BONDS OF CITY OF BEAUMONT AND TO SURRENDER SUCH BONDS FOR REFUNDING INTO REFUNDING BONDS OF SAID CITY; CON- FIRMING AND RATIFYING APPROPRIATION OF MONEYS FOR PAY- MENT OF INTEREST FALLING DUE ON SUCH OUTSTANDING BONDS UNTIL THEY ARE SO REFUNDED; CONTAINING OTHER PROVI- SIONS RELATING TO THE SUBJECT; AND PROVIDING THAT THIS ORDINANCE SHALL TAKE EFFECT FROM AND AFTER ITS PASSAGE WHEREAS, by letter dated June 1,g , 1961, to the City Manager of the City of Beaumont, Texas, the First National Bank, Beaumont, Texas, has proposed to purchase $820,000 outstanding tax bonds of said City maturing during the fiscal year ending June 30, 1962, by making funds available at the various paying agent banks to pay the principal of said bonds as they are presented for payment, the City to pay the interest thereon which falls due on and prior to the ma- turity of said bonds, respectively;.and WHEREAS, said Bank further proposes in said letter to make said outstanding bonds available for refunding and to accept in lieu thereof the general obligation refunding bonds of the City, accom- panied by the unqualified approving opinion of Messrs. Vinson, Elkins, Weems & Searls, Houston, Texas, market attorneys, the City to pay in- terest on said outstanding bonds from their maturity dates, respec- tively, until the date of the bonds that refund them, respectively, at the same interest rates that said outstanding bonds now bear, respectively; and WHEREAS, said refunding bonds are to bear interest at the rate of 3.30% per annum, and are to be issued in two series or issues of bonds, to -wit: (1) $516,000 refunding bonds to be dated December 15, 1961, which will refund those presently outstanding bonds which mature between July 1, 1961 and December 1, 1961, and (2) $304,000 refunding bonds to be dated June 15, 1962, which will refund those -2- presently outstanding bonds which mature between February 1, 1962 and June 15, 1962, all as more particularly set forth in the letter dated June 20, 1961, from Eddleman, Pollok & Fosdick, Incorporated, Houston, Texas, to the City Manager of said City, the proposal contained in said letter of June 20, 1961, having been accepted by the City Council of said City by ordinance adopted June 27, 1961; and WHEREAS, in said ordinance adopted June 27, 1961, the City appropriated moneys, available and on hand, to pay all maturing in- terest coupons on said outstanding bonds and to pay interest thereon from the maturity dates of said outstanding bonds, respectively, to the dates.of the proposed refunding bonds, respectively, at the same rates that said outstanding bonds now bear; and WHEREAS, the City Council wishes to accept the proposal of said First National Bank and to award a contract to such Bank; Therefore BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1: That the proposal contained in the letter dated P �_ , 1961, from the First National Bank, Beaumont, Texas, to the City Manager of said City, a copy of which letter is attached hereto marked "EXHIBIT A" and is hereby made a part of this ordinance for all intents and purposes as though fully set forth herein, is hereby in all things accepted, and the City of Beaumont hereby agrees to all the terms and provisions of said proposal as set forth in said letter and to take all necessary and appropriate action and steps to issue the refunding bonds described in said letter and more particularly described in the letter dated June 20, 1961, from Eddleman, Pollok & Fosdick, Incorporated, Houston, Texas, to said City Manager; and a contract is hereby awarded to said Bank for the matters convered in its aforesaid letter. -3- Section 2: That said letter, together with this,ordinance, shall constitute the contract between said City and said First National Bank. Section 3: That the appropriation of moneys for the pay- ment of all maturing interest coupons on the outstanding bonds to be refunded and for the payment of interest thereon from their maturity dates to the date of the bonds that refund them, as provided in the ordinance adopted by the City Council of said City on the 27th day of June, 1961, is hereby in all things confirmed and ratified. Section 4: That this ordinance shall take effect from and after the date of its passage. PASSED this -c 6 day of Jo 1961. ATTEST: C"rty Clerk, City of Beaumont,` Texas (SEAL) Mayor, City of Beaumont, Texas The foregoing ordinance and all the terms and provisions thereof are hereby approved. m�v ector f -Flnol ce Y THE RR.ST NATi®NAL, BANK ®F BEAUMONT ESTABI)SHED IF99 BEA.UMONT, TEXAS June 28, 1961 JOHN E. GRAY PRESIDENT Mr. Jack W. Jeffrey, City Manager City of Beaumont City hall Beaumont, Texas Bear Air. Jeffrey: Mr. R. N. Eddleman of Eddleman, Pollok & Fosdick, Incorporated, Houston, Texas, acting as agent for the City of Beaumont, has contacted us concerning the purchase by us of the $820,000 tax bonds of the City of Beaumont maturing within the fiscal year ending June 30, 1962, all as more particularly described in the letter to yo'i from that firm, dated June 20,.1961. . We hereby propose to the City of Beaumont that we will purchase said bonds by making funds available at the various paying agent banks to pay the par value of such bonds as they are presented for payment and to sur- render said bonds for refunding, upor. the following conditions: (1) The City will provide funds to pay all interest maturing on and prior to the respective maturity dates of such bonds; (2) The City will pay us interest on said outstanding bonds from their respective maturity dates to the date of the bonds that refund them at the same rates that the bonds now bear; and (3) The City will authorize and issue $516,000 refund- ing bonds, to be dated December 15, 1961, bearing interest at the rate of 3.30% per annum, and ma- turing on the dates specified in said letter of - June 20, 1961, which will refund a like principal amount of the outstanding bonds which mature be- tween July 1, 1961 and December 1, 1961, and i E/ u Air.. Jack W. Jeffrey -2- June 28, 1961 $304,000 refunding bonds, to be dated June 15, 1962, bearing interest at the rate of 3.30% per annum, and maturing on the dates specified in said letter of. June 20, 1961, which will refund a like principal amount of the outstanding bonds which mature between February 1, 1962 and June 15, 1962. At or before the time that the Comptroller of Public Accounts of the State of Texas registers each issue of refunding bonds, respectively, we will surrender to said Comptroller the outstanding bonds to be refunded thereby for exchange and cancellation and will accept in lieu thereof the refunding bonds of the City as described above, and the City will take all steps required to assure that the refunding bonds will be issued and de- livered to us. The City will furnish, without expense to us, the opinion of Messrs. Vinson, Elkins, Weems & Searls, Houston, Texas, market attorneys, approving each issue of refunding bonds as valid and binding obligations of the City of Beaumont, Texas. We agree that the proposal by us contairked in this latter ruay be accepted by resolution or ordinance adopted by the City Council of tiie City of Beaumont, that this letter and such resolution or ordinance will constitute the contract between the City and this Sank, and that the letter of June 20, 1961, mentioned above, may be referred to for all details not covered by this letter. Respectfully subrvitted, THE FIRST RATIONAL BA14K BEAUMONT, TEXAS 11 BY President dEG e e p 41 4. AN ORDINANCE ACCEPTING PROPOSAL FOR FISCAL AGENT SERVICES IN CONNECTION WITH ISSUANCE OF BONDS TO REFUND CERTAIN OUTSTANDING TAX BONDS F CITY OF BEAUMONT AND AWARDING CONTRACT THEREFOR; APPROPRIATING MONEYS FOR PAYMENT OF INTEREST FALLING DUE ON SUCH OUTSTANDING BONDS UNTIL THEY ARE SO REFUNDED; APPRO- PRIATING MONEYS FOR SUCH FISCAL AGENT SERVICES; CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT; AND PROVIDING THAT THIS ORDINANCE SHALL TAKE EFFECT FROM AND AFTER ITS PASSAGE THE STATE OF TEXAS § COUNTY OF JEFFERSON § The City Council of the City of Beaumont, Texas, convened in regular session at the City Hall within said City on the 27th day of June, 1961, with the following members present, to -wit: C. H. LeBlanc Jack M. Moore W. W. Leach Earl L. Patton Rolfe Christopher Jas T. Garrard Mayor Councilman, Ward No. 1 Councilman, Ward No. 2 Councilman, Ward No. 3 Councilman, Ward No. 4 City Clerk and the following member(s) absent, to -wit: -'v,!f3 -VF when, among other business had, the following was transacted: The Mayor introduced an ordinance which was read in full. Councilman /1100 9 i-C made a motion that the ordinance be adopted as read. Councilman L r .4c o seconded the motion for adoption of the ordinance. The motion, carrying with it the adoption of the ordinance, prevailed by the following vote: AYES: Councilmen Moore, Leach, Patton, Christopher and Mayor LeBlanc, NOES: None. The Mayor thereupon announced that the motion had duly and lawfully carried and that the ordinance had been duly and lawfully adopted. The ordinance thus adopted follows: t p',i , 6 71a .0 (,, -'aj lei � I AN ORDINANCE ACCEPTING PROPOSAL FOR FISCAL AGENT SERVICES IN CONNECTION WITH ISSUANCE OF BONDS TO REFUND CERTAIN OUTSTANDING TAX BONDS OF CITY OF BEAUMONT AND AWARDING CONTRACT THEREFOR; APPROPRIATING MONEYS FOR PAYMENT OF INTEREST FALLING DUE ON SUCH OUTSTANDING BONDS UNTIL THEY ARE SO REFUNDED; APPROPRI- ATING MONEYS FOR SUCH FISCAL AGENT SERVICES; CONTATNING OTHER PROVISIONS RELATING TO THE SUBJECT; AND PROVIDING THAT THIS ORDINANCE SHALL TAKE EFFECT FROM AND AFTER ITS PASSAGE WHEREAS, by letter dated June 20, 1961, to the City Manager of the City of Beaumont, Texas, Eddleman, Pollok & Fosdick, Incorpo- rated, Houston, Texas, has proposed to act as agent for said City and to perform such services as may be required to effect the refunding of an aggregate of $820,000 outstanding tax bonds of said City which mature between July 1, 1961 and June 15, 1962, into a like amount of refunding bonds of said City, said outstanding bonds and proposed re- funding bonds being more particularly described in said letter; and WHEREAS, among other things, said firm proposes in said let- ter to secure a purchaser for said outstanding bonds who will make funds available at the various paying agent banks to pay the par value of said bonds as they are presented for payment, the City to pay the interest thereon which falls due on and prior to the matur- ity of the bonds, respectively; and WHEREAS, it is further proposed in said letter that the pur- chaser will agree to make the outstanding bonds available for re- funding and accept in lieu thereof the general obligation refunding bonds of said City, accompanied by the unqualified approving opinion of Messrs. Vinson, Elkins, Weems & Searls, Houston, Texas, market attorneys, the City to pay interest on said outstanding bonds until the date of the bonds that refund them,respectively, at the same in- terest rates that said outstanding bonds now bear, respectively; and -2- 0 r .1 V. WHEREAS, said refunding bonds are to bear interest at the rate of 3.30% per annum,.and are to be issued in two series or issues of bonds, to -wit: (1) $516,000 refunding bonds to be dated December 15, 1961, which will refund those presently outstanding bonds which mature between July 1, 1961 and December 1, 1961, and (2) $304,000 refunding bonds to be dated June 15, 1962, which will refund"those presently outstanding bonds which mature between February 1, 1962 and June 15, 1962, all as more particularly set forth in said letter; and WHEREAS, said firm proposes to act as agent for the City and perform such services for a fee of $3, 569.00, to be paid as follows: 42,057.00 to be paid upon the approval by the Attorney General of Texas and Messrs. Vinson, Elkins, Weems 8c Searls of the $516,000 re- funding bonds to be dated December 15, 1961, and $1,512.00 to be paid upon approval by the Attorney General of Texas and Messrs. Vinson, Elkins, Weems 8c Searls of the $304,000 refunding bonds to be dated June 15, 1962; and WHEREAS, there are moneys presently on hand and available in the interest and sinking funds, respectively, of said outstanding bonds more than sufficient to pay all maturing interest coupons on said outstanding bonds and to pay interest thereon from the maturity dates of said outstanding bonds, respectively, to the dates of the proposed refunding bonds, respectively, at the same rates that said outstanding bonds now bear; and WHEREAS, there are moneys presently on hand and available in the General Fund of the City under the current budget more than suf- ficient to pay the aforesaid fee of said Eddleman, Pollok 8c Fosdick, Incorporated; and WHEREAS, the City Council of said City wishes to accept said proposal and award a contract to said firm; Therefore -3- e BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1: That the proposal contained in the letter dated June 20, 1961, from Eddleman, Pollok & Fosdick, Incorporated, Houston, Texas, to the City Manager of the City of Beaumont, Texas, a copy of which letter is attached hereto marked "EXHIBIT A" and is hereby made a part of this ordinance for all intents and purposes as though fully set forth herein, is hereby in all things accepted, and the City of Beaumont hereby agrees to all the terms and provisions of said pro- posal as set forth in said letter and to take all necessary or appro- priate action and steps to issue the refunding bonds described in said letter; and a contract is hereby awarded to said firm to perform the services outlined in said letter. Section 2: That said letter, together with this ordinance, shall constitute the contract between said City and Eddleman, Pollok & Fosdick, Incorporated. ,/Section 3: That there is hereby appropriated out of the in- terest and sinking funds of the outstanding bonds, respectively, which are to be refunded, as more specifically provided in the pre- amble to this ordinance, in amounts sufficient to pay all maturing interest coupons appertaining to said outstanding bonds and to pay interest thereon from their maturity dates to the date of the bonds that refund them. Section 4: That there is hereby appropriated out of the General Fund of said City the sum of $3,569.00 to pay the fee of said Eddleman, Pollok & Fosdick, Incorporated, to be performed as provided in said letter, said fee to be paid in two installments as more spe- cifically provided in said preamble. Section 5: That this ordinance shall take effect from .and after the date of its passage. -4- PASSED this 27th day of June, 1961. l�4 C? , �'------- Mayor, City of Beaumont, Texas ATTEST: 7-Clerk, City of Beaumont, Texas (SEAL) The foregoing ordinance and all the terms and provisions CD thereof are hereby approved. Director o �Firian'cei (/ -5- 0 � 6 � ZD 2) EDDLEMAN, POILEOK FOSDfCK INVESTMENT BANK EFL 939 BANK OF T"E sn_ E S -1 E3 L r HOUSTON 2, T '- X 4 S C A P, 7- C-) 5:,. 2 2 Mr. Jack W- JeffreY, City MaamCor City Of Y*vumont City Bull Beaumoiat, Texp_s Dear Mr. Jeffrey: Th-- City Of Bftuwnt has Outstanding $,'Fj20,CW Par v-elue �f b:)r;d,, rvatuTing vIthin the fiscal year ending JUlm 30, 1962 which we understanmL yo�.j rja-v conaider refunding intc bonifts maturing serially witL-in , ye,&r�,to our records, th*8a bon& mture as rlhovn An the foiliwjjjg. Coupon Dated Amount Maturity Rate 7-1-29 7-1-30 $26, OX 27,000 7-1-61 7-1-61 4 1 ' '2% 4 112% .ja-- First 11atioi j,ty First natjor--j- City r Y 8-1-46 25,000 8 - -1 - F, 1 2 114 x chase 1-1--mahatt—ar, F k, ? - 1 -4 7 9-1-54 50,000 �)4 9-1-61 12 First natior.w.1 city T.-I, ilevr yj-4-k 000 9-1-61 2 1 2% ot Barris Tm&. Loa��r�in-s par 21,; , DW 10-1-61 5% First Natinnal, City 7--ank, New -Yjr',, 10-15-52 72,004 10-15-61 3 1 A!, Chmical Bank New York 11-1-57 65,00G 11-1-61 5% First City Nati3nal BaAjs, 7 2, 000 11-15-61 2 3,.'4% cbemical kaxjk -2-6 5 0, xx) 12-1-61 5% First Wationol cj,,y n 10, Goo 1,,? - 1 --6 1 3 1 /'4f cbe-se' Manhattan Bmri" I "-a� Y%-r"" 2-1 26 -:-,o C 000. 2-1-62 % First Nation-n-I Ci%'-y 1":,an)s, '7--V-,- _,I 16, GOD 2-2.-62 4 1/2% First Natioll.:a., Y-:.,-" 9 109, 000 2-1-620 2 1 /4 Am-rican 2 - 15 - 55 34, oy) 20--t5 -62 3% Mercantile '1;;vtiDnaj Dcz�k 1 1-1-15-58 30,000 2-15-6,o 3% First ffAtjz)rgLj n,:,zv 21-15-59 5j,000 2-13 -62 4,% Americc-n Kati. Dank P, Tri t, t":h-'CL.J_'j Mr. Jack W. Jeffrey, coupon Dated Amount MsturLtY Rate- 4-1-58 $15,0oo 4-1-62 3 1/4% 5-1-31 4,000 5-1-62 4 1/2% 6-15-48 61, 000 6-15 -62 2 3./40 Nying Aent First National Bank, Beamont First National City Bank, New York American Natl. Bank & Trust, Chicago Based on the foregoing, ve submit for your consideration this proposal to act as your agent and perform such services as may be requirv8 on our part to refund these outstanding $820,000 of Bonds: (1) be will secure for tb* City a purchaser for the $620,000 maturing bonds who will make funds available at the various paying agents to pay they par value of bonds as they am presented for payment. The purchaser frill provide funds only to the extent of the parr value of the maturing bonds and the City Mill provide funds to pay maturing interest coupons. (2) The purcbaser will agree to make the bands available for refunding and accept in lieu thereof General Obligation Refunding Bonds accuapanted by the unqualified apprmdug opinion of Messrs. Vinson, Bikins, Weew & gearls, Bond Attornemya of Rouston, bearing interest at the rate: of 3.30% per annum(vhich is more than 0.10% less than the average rate on the bonds being refunded and maturing $70,000 12-15-63 75,000 12-15 -64 80,000 12-15-65 --85,000 - - 12-15-66 90, 000 12-15 -67 95,E-15- 100,000 12-15-69 110,000 12-15-70 115,000 12-15-71 The City agrees to pay the purchaser interest on the bonds to be refunded from their maturity date tothe date of the refunding bonds at the same coupon rate at which they were issued: In order to limit the =ber of deliveries of refunding bonds, the purchaser Will accuetulate bonds maturing July 1, 1961 to December 1, 1961 in the amount of $516,000, and accept in lieu of theme $516,000, 3.30% Refunding Bonds dated 12-15-61, and maturings Mr. Jack I . Jeffrey, 6, 000 90..000 95,000 100,000 U0,000 115,000 and 'will acc,,=ulete bonds wturing Febrwa',-y -,he a'auunt of 8,304,,OW and accept in lieu of izj-'A Bands !a -Led June 15, 1962 and maturing-, --'un 4 70,000 751000 60,000 P), coo Tbm City agrees to- pars such ordinances an, may "o-c the retwiding and to pay all expetmes Incialer.T.&I fees, printing the bonds, chipping charges, etc, 5 - 5 For our services w aro to receive a fee uivor by the Attorney General " gassra. Vjuaor,, Dikilar., "IX of th'� I ' 4 -, ", , $516,OW Refunding Bonds dated D"mber 11: L�)6'1 i4p*n approY&I of the 3304,000 Refunding Bondp; - Your; Yery tlruiy, MU: bp cc: Mr. Ge-Orge S. nn-pby, City Attorney City of Beaumont city wi Beaumont, Texas Mr. George Sparks Vinson, Elkins, Weems & girls 20th Floor Firot City National Bank Bldg, Houeton 2, Texas CV, 6c�_ 101)) INTER -OFFICE MEMORANDUM CITY OF BEAUMONT, TEXAS Date: June 27, 1961 To: Mr. Jas. T. Garrard, City Clerk From: George E. Murphy, City Attorney Subject: COMMENT: I am returning for your files the original ordinance adopted this morning by the City Council -accepting the pro- posal of Eddleman, Pollok & Fosdick, Incorporated. This should be filed in the customary manner. GEM:h encl. 0 LE e ''. Murph y Attorney (0 �_) 5�°