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HomeMy WebLinkAboutMinutes City Council - 06/30/1982.4• PRESENT: Mayor Luther Jones Council Members: Jack K. Dumphy Herbert L. Hawkins, Jr. *Dr. Charles W. Kennedy Cliff Zarsky MINUTES CITY OF CORPUS CHRISTI, TEXAS REGULAR COUNCIL MEETING JUNE 30, 1982 2:00 P.M. City Manager Edward Martin City Attorney J. Bruce Aycock City Secretary Bill G. Read ABSENT: Mayor ProrTem Betty N. Turner Bob Gullny Mayor Luther Jones called the meeting to order. The ,.invocation was given by Reverend Hilroy Jones of Brooks Chapel following which the Pledge of Allegiance to the Flag of the United States was led by Council Member Jack Dumphy. City Secretary Bill G. Read called the roll of required Charter Officers and stated that the necessary quorum was present to conduct a legally con- stituted meeting. A motion was made by Council Member Dumphy that Mayor Pro Tem Betty Turner and Council Member Bob Gulley be excused for just cause; seconded by Council Member Hawkins; and passed unanimously. - Mayor Jones announced the issuance of the following proclamation: "MICKEY LELAND APPR.ECIATICN DAY" - July 3, 15482. Mayor Jones announced a presentation by Mr. Joe L. Brown or his representa- tive in regard to the animal control ordinance. Mr. Tony Canales, 14 Hewit Drive, stated that he is a neighbor of Mr. Brown's and he was present to express concern of both of them, noting that he was not appearing as Mr. Brown's representative or attorney. He informed the Council that a live cougar is kept by a property owner in his neighborhood and it is within 200' of his property. He referred to the grandfather clause that was included in the recently amended animal control ordinance which allowed his neighbor to retain the cougar after certain safeguards and a permit had been obtained from Dr. Christopher Buttery of the Health Department. He stated that in order to obtain the permit the owner of the animal apparently complied with MICROFIEME ttt i 9 1994 Minutes Regular Council Meeting June 30, 1982 Page 2 the requirements, of the ordinance yet this large wild animal escaped a short time ago and was captured in the neighborhood. Mr. Canales urged that the ordinance be amended again to totally prohibit the keeping of exotic animals within the city limits. He stated that all of his neighbors are very opposed to the existence of this animal on Hewit Drive and they are fearful because of the dangers that could be posed to children in the neighborhood. He stated that he feels that the O'Connors, who are the owners of the cougar, are unfair to their neighbors in continuing to keep this animal and endangering people in the neighbor/cod. He then urged that the ordinance be amended to include this prohibition with the understanding that the owners of existing exotic animals have a certain period of time to dispose of the animals. Mayor Jones explained to Mr. Canales that the ordinance was amended in accordance with the advice of the Animal Control Advisory Board and suggested that possibly the Council could ask for their opinion of such an amendment. Council Member Zarsky noted that there was a public hearing be;lore the Animal Control Advisory Board shortly after the cougar escaped in that neighbor- hood and inquired if there was any further action that could be: taken. Cit} Attorney J. Bruce Aycock explainer: that any ruling of the Board could be appealed to the City Council. Dr. Christopher Buttery, Director of the Health Department, agreed that there was reason for concern. He explained that the ordinance calls for such a hearing if there is any violation of the ordinance and this hearing was conducted.. He explained that during the hearing, the neighbor in whose yard the animal was captured appeared and informed them that there was nc sign of viciousness in the animal. Dr. Buttery then presented the Council with guide- lines that he had established for this animal, including the requirement that a cat sitter be on duty any time the family it away Erom home. Courcil Member Zarsky expressed concern about the City Council's liability if this animal should escape again. City Attorney Aycock stated that he would have to study this to see how far the Council's liability extended. *Council Member Kennedy arrived at the meeting at 2:13 p.m. Cour.ciL Member Hawkins agreed that an amendment to the ordinance should be ccnsidored and suggested that this be an s:genda item. *f • Minutes Regular Council Meeting June 30, 1982 Page 3 Mr. Canales suggested that only the portion of the ordinance pertaining to exotic animals be considered for an amendment. Council Member Kennedy concurred and stated that possibly July 14, 1982 would be a good date to set for such discussion. He asked that Mr. and Mrs. O'Connor be notified that the matter is going to be considered by the Council. Mayor Jones then administered the oath to the following new board member: Dr. Archie Kennon, member of the Citizens Advisory Health and Welfare Board. * * * * * * * * * * * * * * Mayor Jones announced the bid opening on the following engineering project: Sanitary sewer extensions in a portion of Lake View Acres and Maui Drive. The project provides for sanitary sewer extensions in developed areas of the City which have been initiated as a result of petitions from property owners in those areas. Mr. James K. Lantos, P.E., Assistant City Manager, opened bids on this project from the following firms: APPCO, Heldenfels Brothers, Inc., Islets Construction Company and Maverick Construction Company. Mayor Jones expressed appreciation to the bidders who had submitted bids and stated that they would be tabled for 48 hours, pursuant to the requirements of the City Charter, and referred to the staff for tabulation and recommenda- tion. * * * * * * * * * * * * * * Mayor Jones called for actions of the Council from the Workshop Session on the following matters: 1. Workshops for review of the proposed 1982-83 Budget be scheduled at 5:30 p.m. on July 13, 19 and 26, 1982; the public hearing on the Budget be held at 4:00 p.m. on July 21, 1982 and the Budget be considered for adoption on July 28, 1982. A motion was made by Council Member Zarsky that the foregoing schedule he approved, seconded by Council Member Hawkins and passed unanimously. 2. The Arts Support balance of $13,848 be allocated for $5,000 for the Harbor Playhouse and $8,848 be designated for permanent existing art. A motion was made by Council Member Hawkins that the foregoing action be confirmed, seconded by Council Member Kennedy. Council Member Kennedy inquired if there is any other source of funds for the Harbor Playhouse, and City Manager Ed Martin replied that money could be allocated from the General Fund Reserve. Council Member Kennedy expressed the opinion that the $5,000 allocation for the Harbor Playouse construction is contrary to the Council's original position Minutes Regular Council Meeting June 30, 1982 Page 4 that funds should not be allocated for this type of expenditure including staff support. The motion to approve the foregoing action passed unanimously. * * * * * * * * * * k k k Several Council Members suggested that the discussion item on the land mass in the Marina be considered at this time. City Manager Martin explained that this matter has been discussed and studied and there is a need to know whether or not someone is interested in building a land mass, and there seems to be an opinion that private developers also need to know whether or not a 404 permit from the Corps of Engineers would be available. Council Members Kennedy and Dumphy commented that a lot of staff time would be necessary for the study and this is a very busy time for most of the staff members. - Council Member Zarsky suggested that other possibilities be considered for the land mass as well. City Manager Martin indicated that such a study could be conducted by the staff in the near future. * * * * * * * * * * * * * * Mayor Jones called for actions of the City Council by motion. 1. A public hearing be held July 21, 1982 on an amendment to the Platting Ordinance relative to street construction standards in the Flour Bluff and Padre and Mustang Island portions of the City. The proposed changes are necessary because of ground -water problems encountered in the development of subdivisions in the areas. Cement stabilized caliche or hot -mix asphaltic concrete would be permitted as base material. 2. Bids be received July 27, 1982 for clarifier equipment and mechanical floating aerators for the Allison Wastewater Treatment Plant. It is recommended that the equipment for the interim improvements be purchased ahead of the construction contract in order to expedite completion. All interim improvements will be incorporated in the final design. 3. The Airport Terminal Building Renovation and Expansion Project be accepted and final payment of $115,273.60 be made to Braselton Con- struction Company for a total of $1,319,005. Some minor problems with the baggage carousel and the security door between the concourse and baggage area will be corrected by the contractor. Also, the project plaque has not been furnished. It is recommended that $30,000 be retained until these items are complete. This project provided for the enlargement of the queueing area and walkway in front of the building at the ticket counters, the relocation and enlargement of the baggage claim area, additional restroom facilities, a wheelchair lift, and the relocation of the rental car operator counters. The project was funded with 1977 bond funds and a FAA grant. Minutes Regular Council Meeting June 30, 1982 Page 5 4. Two three -wheel motor vehicles be purchased from Watson Distributing Co., San Antonio, the only bidder, for the total amount of $13,182. These units will be used for parking control by the Traffic and Transit Department. 5. A prefabricated storage building including reinforced concrete slab and erection be purchased for the Signs & Markings Division of Traffic and Transit from Goldston Corporation, Corpus Christi, on the basis of low bid of $8,543. Two bids were received. The building is included in the 1981-82 Revenue Sharing Budget. The building is needed to store pickup trucks, a paint truck, painting machines and barricades and signs. This equipment is currently stored outside. Storage inside will provide protection from moisture and corrosion extending the life of the equipment. 6. Bids be received July 27, 1982 for an additional 4500 gallon asphalt transport trailer for the Street Division. This equipment is used for asphalt heating, transfers to distribution vehicles and storage and is included in the 1981-82 Revenue Sharing Budget. The Street Division currently has a 3000 gallon unit which is not large enough to carry a full day's sealing requirement. The 4500 gallon unit will prevent trips back and forth for refilling. The 3000 gallon unit will be used for back up in case of breakdown and for additional storage on large projects. 7. Bids be received July 27, 1982 for a telescopic boom excavator carrier mounted for the Street Division. This equipment is used to clean and grade ditches and road maintenance. It is included in the 1981-82 Revenue Sharing Budget and will replace a 1970 model. 8. Bids be received July 20, 1982 for three replacement air cooled split coil condensers for the Coliseum. The current condensers are approxi- mately 12 years old, rusted out and operating very inefficiently. 9. Biomedical telemetry equipment be purchased for the new ambulance bought this year on the basis of low bid as follows: Motorola, San Antonio Portable life support system $ 6,525.00 Triplex mobile repeater 6,406.00 Accessories for Triplex unit 1,700.00 $14,631.00 Physio Controls, Arlington ECG Strip Chart Unit $ 2,479.50 Defibrillator 3,377.25 AC Powered Charger Unit 650.75 $ 6,507.50 GRAND TOTAL: $21,138.50 Two bids were received. The telemetry equipment is included in the 1981-82 budget. Minutes Regular Council Meeting June 30, 1982 Page 6 10. 1 3/4", 3" and 5" fire hose be purchased from Fire Protection, Plano, Texas on the basis of low bid meeting specifications as follows: 10,000' of 1 3/4" hose 10,000' of 3" hose 2,000' of 5" hose Price Per Foot $2.52 3.35 6.05 Grand Total Total $25,200.00 33,500.00 12,100.00 $70,800.00 The apparent low bids submitted by Corpus Christi Rubber and Specialty Co., Alamo Fire & Safety of San Antonio and Stuart Hose Co. of Fort Worth did not meet weight and liner specifications. The apparent low bids ranged from $1.14 per foot to $1.31 per foot on the 1 3/4" hose and $1.97 per foot to $2.56 per foot on the 3" hose. Bids were received from six firms. 11. Duplicating equipment to replace to total copy system in the print shop be purchased from the following on the basis of low bid: AB Dick Company, Corpus Christi 1 Electrostatic Camera Plate Maker 1 Duplicating Machine 1 Duplicating Machine with color head and powder spray $ 9,950 9,995 14,530 Total $34,475 F&M Supply Company, Corpus Christi 1 Master Conversion Unit 1 Collator Total $ 375 7,385 $ 7,760 Grand Total $42,235 The low bid of $9,975 by A -M Multigraphics of Corpus Christi is only $20 less than the recommended bid of AB Dick Company on the duplicator and is not recommended because the equipment requires more adjustments when changing from light weight to heavy card stock and from large to small items. Also, in the event of down time, the color equipment would be interchangeable from one AB Dick duplicator to another. Five bids were received. The equipment is included in the 1981-82 budget. The current unit is over eight years old and is frequently in need of repair. Parts for a portion of the system are no longer available. 12. The CPA firm of Arturo Vasquez & Company be employed to audit the Tax Division for the year ending July 31, 1982. This firm audits the Corpus Christi Independent School District. The City has customarily employed the District's auditors for the Tax Division audit. Cost of the audit will not exceed $3,300. Last years cost was $3,000. .iinutes Regular Council Meeting June 30, 1982 Page 7 13. Twelve month supply agreements for 1,700' of chain, 519 hooks and shuts, 930 lbs. of manilla rope, 12,000' of wire rope and 247 wire rope and clips for the Warehouse be approved based on low bid as follows: Stone Company, Corpus Christi Chain, hooks and shuts American Cotton Yarns, Inc., Westmont, I11. Manilla rope Gunderland Marine, Corpus Christi Wire rope and clips $ 3,563.77 1,050.77 2,747.89 Grand Total $ 7,362.43 Six bids were received. Prices have increased approximately 22% on chain, hooks and shuts. Prices have decreased approximately 9% on manilla rope and 48% on wire rope and clips. Council Member Kennedy referred to item 3 in regard to the final payment for the Airport Terminal Building Renovation and Expansion Project and asked about the unsightly well in the center of the baggage claim carousel. Mr. Lontos explained that $30,000 will be retained until all of the items have been completed. Council Member Zarsky referred to item 8 in regard to the replacement aircool split coil condensers for the Coliseum and referred to the statement that damage was inflicted on autos in a nearby dealer's lot by the condensers that are currently existing on the Coliseum. Mr. Bill Hennings, Assistant City Manager, indicated that the replacement condensers would eliminate this problem. A motion was made by Council Member Hawkins that items 1 through 13 be approved, seconded by Council Member Kennedy and passed unanimously. * * * * * * * * * * * * * * Mayor Jones called for consideration by the Council of new ordinances. He called for comments from the audience on these items. Ms. Caroline Whitehead, General Manager of the local Athena Cablevision office, referred to ordinance "A" which is the first reading of an ordinance establishing a Cable Communications Commission. Ms. Whitehead expressed opposition to such a commission, stating that she feels that the Council should monitor the actions of the cable company. She informed the Council, however, that if such a commission is established, she would like to have either herself or a member of Athena Cablevision serve as an ex -officio member of the commission to provide expertise and information. Minutes Regular Council Meeting June 30, 1982 Page 8 Council Member Hawkins expressed opposition to a member of the Cablevision Company serving in this capacity because he was of the opinion it would be unethical. Council Member Dumphy stated that he felt that Ms. Whitehead could be notified of the meetings and have a representative attend the commission meet- ings. Mayor Jones also expressed concern about this particular ordinance and inquired about the designation that a member of a governmental entity would be appointed to the Commission. City Manager Martin stated that this could be either a County representa- tive, a City representative or even a City staff member. Mayor Jones then referred to the requirement for a member from a religious institution and inquired about the reason for this. City Manager Martin explained that the staff was of the opinion that pcssibly the City could ask the Ministerial Alliance to suggest a member to represent them since there is a public access channel included in which they might be interested. Mayor Jones referred to ordinance "9" which is the first reading calling for an election to be held on the question of adopting an amendment to the City Charter to amend the existing collective bargaining agreement between the City and the Firefighter's and Police Officer's Association, and requested an explanation. City Manager Martin explained that is whether they believe that collective to an impartial arbitrator to provide a would be accomplished and stated that at made by the voters in case the question to be posed to the voters bargaining matters should be submitted final decision. He explained how this this time, the final decision could be of an impasse. He noted that if this amendment passes, this decision would be made by an impartial arbitrator. Council Member Zarsky referred to ordinance "D" which calls for the closing of a 40' wide unimproved right-of-way and asked to see a diagram on this. Mr. Gerald Smith, P.E., City Engineer, explained that the application was submitted to close Saratoga Road extension, noting that the Master Street Plan does not provide for this extension. He explained that the Planning Commission had required that the developer provide for a 20' right-of-way. Mr. Smith Minutes Regular Council Meeting June 30, 1982 Page 9 continued by stating that the right-of-way is along the north side of Country Creek Subdivision at the extension of Saratoga Boulevard east of Rodd Field Road and that the staff concurs with the request to close the right-of-way subject to the retention of a 15' utility easement the approximate 1,150' length of the closure request since a sanitary sewer is currently being constructed there. He pointed out that if the right-of-way is not closed, the developer would have to pay for street construction and reiterated that this extension is not on the master plan. Mr. Smith commented that this ordinance would be the result of a public hearing that is scheduled later during the meeting. City Secretary Read pointed out that since the matter had been discussed, this could be considered the public hearing. Mayor Jones ascertained that no one in the audience wished to speak on this subject. Assistant City Manager Lontos referred to the emergency posting of the following new ordinance. A 5 -foot utility easement in Lot 35, Block 2, Breckenridge Subdivision Unit 1 be closed. Homes in Breckenridge Subdivison are being built under the zero lot line concept and a home was built across the easement of Lot 35, Block 2 on the lot line without regard to the existing 5 -foot utility easement. No City utilities or other utilities exist in the easement proposed for closure. The staff concurs in the recommendation that the easement be closed subject to the replatting of the lot. Mr. Lontos explained that the house on this lot was built over the 5' easement; it is under construction at this time; the subdivision is such that the owner is allowed to build up to the line; and the staff recommends that it be closed subject to platting since it is not needed by the City. Mayor Jones called for consideration of the second and third reading ordinances and referred in particular to the second reading of the ordinance adopting a code of ethics for city officials and employees. Mayor Jones expressed the opinion that acceptance of any gifts by City officials, including Council Members and staff members, should be prohibited and suggested that this phrase be added to this ordinance. Council Member Zarsky agreed with Mayor Jones if the gift is sent to the individual in the name of the City Council, but he does not feel that gifts should be prohibited altogether if it is in connection with a private business owned by a Council Member. Minutes Regular Council Meeting June 30, 1982. Page 10 Council Member Hawkins concurred, stating that he felt the Council Members should not accept gifts as members of the Council, but on a different basis, there should be no problem. There were no comments from the audience on the second and third reading ordinances. A motion was made by Council Member Hawkins that the Regular Council Meeting be recessed at 3:37 p.m. in order the convene the Special Council Meeting: seconded by Council Member Dumphy and passed unanimously. Mayor Jones reconvened the Regular Council Meeting at 4:15 l.m. and announced the first public hearing on the following matter: 1. 3:00 p.m. - Hearing on the preliminary assessment roll for the improvement of Kentner Street from Claremore to Palmetto Streets. The preliminary roll consists of total assessments of $1,781.11 on three items. The amount of the construction contract with King Construction Company for the project is $34,192.36. Assistant City Attorney Bob Coffin informed the Council that this hearing is required by State law to present evidence and testimony to enable the City Ccuncil to make a decision in regard to the adoption of the assessment roll. Mr. Coffin called as his first witness Mr. Gerald Smith, P.E., City Engineer. Through questioning of the witness, Mr. Coffin ascertained that Mr. smith has been in the Engineering Department of the City of Corpus Christi for approxi- mately 2212 years and verified that a copy of Mr. Smith's qualifications in resume form is on file in the Office of the City Secretary. Mr. Smith displayed a transparency and located Kentner Street which is to be improved from Palmetto Street to Claremore Drive. He explained that this is not a voluntary paving project but was included in the 1977 bond program. Mr. Smith explained the project, stating the improvements would consist of a 4' wide reinforced concrete sidewalk along the limits of the project on the north side and the construction of 12 of a 28' wide street and renovation of the existing street, noting that the new street shall be constructed with a compacted base, 8" thick flexible caliche base, 112" hot asphaltic service and a standard 6" curb and gutter section on the north side between University Street and Claremore Street. Mr. Smith also stated that reinforced 6" thick concrete driveways would be constructed as shown on the plans. Mr. Smith continued his presentation and stated that the plans and speci- fications were prepared in the City's Engineering Department and they do not P � Minutes Regular Council Meeting June 30, 1982 Page 11 recommend the construction of a sidewalk on the final block of Kentner Street because an elderly person resides there and it is a hardship case. He stated that the contract has been awarded to King Construction Company in the amount of $34,192,361 preliminary assessments total $1,462.88; and the City's portion is $32,729.48. Mr. Smith stated that there are only three items on the assessment roll. Assistant City Attorney Coffin called as his next witness the City's appraiser, Mr. George Paraskevas. Through questioning of this witness, Mr. Coffin ascertained that Mr. Paraskevas, who resides at 5213 Moultrie, is a real estate broker and he has served in that capacity for 11 years. Mr. Coffin stated that Mr. Paraskevas' qualifications in resume form are on file in various city offices. Mr. Paraskevas testified that he is thoroughly familiar with the property included in the project and that he has examined each and every piece of property. He stated that, in his opinion, since there are no pie or odd shaped lots, all of the property will be enhanced at least in the amount of the assess- ment for each. Mayor Jones ascertained that no one wished to speak during this assessment hearing. A motion was made by Council Member Dumphy that the hearing be closed, seconded by Council Member Hawkins and passed unanimously. A motion was made by Council Member Hawkins that the preliminary assessment roll be approved, seconded by Council Member Dumphy and passed unanimously. * * * * * * * * * * * * * Mayor Jones announced the reconvened hearing on the rate increase request of Central Power and Light Company. City Manager Martin reviewed the previous public hearing which was conducted on May 19, 1982. He reminded the Council that there have been hearings conducted before the Public Utility Commission in Austin. He recommended that the hearing before the City Council be completed on the request to increase the rates, following which the ordinance establishing the new rates will be considered by the City Council. Mr. Martin then announced that Mr. Richard Mertz, Administrative Assistant in his office, who has worked so diligently for the City on the Central Power Minutes Regular Council Meeting June 30, 1982 Page 12 and Light Company request for a rate increase, will be leaving City employment on July 16, 1982 for employment in private industry. Mayor Jones expressed appreciation to Mr. Mertz for all of the work he has done for the City, not only on rate cases but also on cablevision matters and for his service as the City's representative during the State Legislative Sessions. He assured Mr. Mertz that he wou]d be missed by the City. Mr. Mertz then reviewed for the Council the events connected with the CP&L rate increase request, stating that the company had requested a rate increase of $156,021,000. He reminded the Council that this City, in conjunction with other cities served by CP&L, had employed Touche Ross and Company as consultants to study the rate increase request. He stated that the consultants had recommended that the rate increase be limited to $72,862,000 and during the public hearing conducted by the Public Utility Commission on rural rates, the Public Utility Commission staff had recommended an increase of $81,600,000. Mr. Mertz continued his presentation by making the following recommenda- tions: (1) That a rate ordinance be adopted authorizing CP&L to increase rates, tariffs and charges on a system wide basis to yield an additional $72,862,000 per annum (2) That CP&L be authorized to submit to this City for approval a schedule of rates and tariffs to increase the system wide per annum revenues by $72,862,000 which would apply on and after July 29, 1982 (3) The cost allo- cation methodology and design of rates to recover the additional revenues as proposed by CP&L in its rate filing be approved (4) The company's proposal to surcharge the municipal franchise fee on inside city limit customers be denied but allow the company to recover the amount on a system wide basis in each applicable rate schedule (5) If CP&L makes any off system sales the City will apply any after tax profits as internally generated funds to its construction expenditures (6) Any amounts recovered by CP&L from litigation concerning the South Texas Project, after deduction of expenses of the Company in pursuing the litigation, will benefit customers through such means as the appropriate regulatory authority may find proper, that the Company be allowed to include 60% of its construction work in progress instead of the requested 100% and (7) That CP&L's proposed accounting changes in connection with the oil and gas explora- tion program be disallowed. Minutes Regular Council Meeting June 30, 196: Page 13 Mayor Jones asked Mr. Mertz how many cities have approved the Touche Ross recommendation, and Mr. Mertz replied that only two cities at this time have adopted it. Council Member Hawkins referred to the previous public hearing and stated that it was his understanding that CP&L had indicated a willingness to compromise on their original rate increase and inquired if they really planned to do this. Mr. Mertz explained that CP&L did compromise in some of the areas. He pointed out that the company made their last rate increase request 30 months ago; at that time a compromise rate increase had been agreed upon; therefore, he was of the opinion that the rate increase recommended by Touche Ross would be reasonable this time as well. Mr. Mertz also pointed out that the Company feels that there are certain elements of risk and they are of the opinion that the residential customers are the most reliable source of income since it is possible that industries can move in and out of the City. He noted also that industry representatives have become active in this rate case as intervenors. Mayor Jones summarized by stating that the City staff recommends that the Council approve the rate increase as recommended by Touche Ross. He then explained that several actions could be taken, including none at all. Council Member Zarsky inquired if the rate of return for CP&L is in line with the rate of return for other cities. Mr. Greg Tarasar, representative for Touche Ross Company of Dallas, explained rates in different cities. He stated that they feel that the 16.13 rate is in the same category as other cities. To Mayor Jones' question as to how much time Touche Ross had devoted to this study, Mr. Tarasar replied that they had just computed the number of hours and the total was 1,044 hours. Mr. S. E. Kelley, Jr., District Manager for Central Power and Light Company, stated that he would like to take this opportunity to thank everyone with the City who had participated in this endeavor. He particularly complimented Mr. Rick Mertz for his cooperative attitude and expressed the opinion that he had handled everything pertaining to the rate increase in an economical and efficient manner. Council Member Zarsky asked about the rate of return to CP&L stockholders. Mr. Robert Range, Executive Vice President and Chief Financial Officer of CP&L, Minutes Regular Council Meeting June 30, 1982 Page 14 explained that the percentage of the rate of return was 14.9% on the year end equity and 16% on average equity for the year. Mr. Wallace Hunton, Manager of Reynolds Aluminum Company and President of the Board of Trade, informed the Council that the Board is composed of 19 port related industries in Corpus Christi. He stated that the Board of Trade has been very much concerned about the CP&L rate increase request and particularly the manner in which the increase may be applied. Mr. Hunton then presented to the Council copies of a letter from the Board of Trade to the Public Utility Commission and read it into the record. In the letter Mr. Hunton pointed out that any increase in utility costs, taxes, labor, transportation or storage for local businesses results in higher operating costs, which makes South Texas a less desirable place in which to do business; any increase in operating costs for industry also affects the service and support jobs which are dependent on that industry; free enterprise system rewards those businesses which can produce needed goods at a reasonable costs; and any increase in cost such as increased utility rates will penalize the workers in that industry and the workers whose jobs are dependent on that industry's operation; local industry has always been willing to carry its fair share of reasonable increase in utility costs, but they object to being penalized by having to carry a larger load of increased utility costs; and the Board of Trade therefore wishes to go on record as advocating that any increased utility rates be determined according to the cost of the service rather than having a large portion of the increase placed on large industry and small business. Mr. Mertz pointed out that the staff and consultant recommendation includes a 9.7% increase for residential customers and a 6% increase for large industrial users, whereas the Public Utility Commission staff recommended 14.74% increase for residential customers. Mr. Hunton stated that he recognized the fact that 6% would mean that the large industrial user would pay more than residential customers. Mayor Jones inquired of Mr. Hunton if industry had a recommendation as to what the rate of increase should be, and Mr. Hunton replied that they are of the opinion that it should be based on cost of service. City Manager Martin pointed out that the Council needed to be concerned about the company's proposal which included increases as follows: 20.8% for Minutes Regular Council Meeting June 30, 1982 Page 15 residential customers and 12.8% for large industries. He pointed out that the percentage of differential in the recommended rate increase is very close to the percentage that CP&L originally requested. - Mr. Tarasar agreed that their recommendation does follow closely what the company recommended as far as the differential is concerned. Mr. Rick Harrison, Manager of the local Dupont Plant, expressed the opinion that the recommendation of the consultants and the recommendation of CP&L makes a big difference between the large industrial user and the residential user and pointed out that this makes it difficult for industry to attract more jobs to South Texas. He agreed that this may be good for the residential user, but it is possible that the occupants of the residences would not have jobs if companies decide that the utility rates are too expensive in South Texas. Mayor Jones asked CP&L representatives if they felt that industry was subsidizing the residential users. Mr. Range explained that CP&L had studied this; they have prepared a cost of service; it is on the most equitable responsible way that they know how to do it and the appropriateness of bringing every customer to the rate of one is their eventual aim. He stated however that there is a lot of controversy as to whether that would be appropriate or not because not all of the same kind of customers have the same rate of risk. Mr. Range expressed the opinion that moving every customer to "one" class of customers would be a very dramatic movement at one time but they have been moving in this direction since 1976. Council Member Zarsky referred to the previous plan of CP&L for an incen- tive for customers to have all electric power. Mr. Range stated that they still have all electric incentive for users but they no longer can promote incentive payments, etc. Mr. Harrison spoke again and expressed the opinion that the Council should be instrumental in moving to a rate based on cost of service. He pointed out that this is very important to the Dupont Company. City Manager Martin reiterated that it is very important for the Council to remember that the issue they're addressing includes a recommendation that does exactly what the company has requested as far as percentages go. He also expressed the opinion that the Public Utility Commission's staff recommendation of 14.74% moves the rate closer to the cost of service. Minutes Regular Council Meeting June 30, 1982 Page 16 Mr. August Meinrath, Vice President of American Chrome and Chemical Company, pointed out to the Council that his company competes with two similar plants in the United States and:seven in the world; their sales in Texas are relatively small; and if this city's relatively high energy cost is increased, it makes it less attractive to have industry locate in Texas and makes it more difficult for his company to compete. Mr. J. E. O'Brien, 4130 Pompano, addressed the Council on behalf of the Corpus Christi Taxpayer's Association. He expressed opposition to the $156 million rate increase. He referred to the remark made that industry is subsidizing the homeowners in paying utility rates and expressed the opinion that in the past few years, the homeowner has subsidized industry. He pointed out also that the utility company operating in the Dallas area was only granted a 5% rate increase recently and he felt that CP&L's request was for an outrageous increase. He stated that he was of the opinion that the City staff's recommendation is "liveable", but that's all. He informed the Council that the Taxpayer's Association will pursue their opposition to the rate increase including the fuel adjustment clause included in that contract. He stated that he understood that CP&L purchases oil from Coastal States as one of their suppliers and pointed out that Coastal States has just purchased a large amount of oil from Iran. He urged that CP&L review their policies on buying oil. Mr. Vernon Shirley spoke in opposition to the rate increase and noted that with the increase in taxes and electricity, people who are retired and living on a fixed income will have a great deal of difficulty in paying their bills. He' also objected to the construction of the nuclear plant in Bay City. He expressed the opinion that a 5% increase for CP&L would be adequate. Mr. Tom Hunt agreed with the statements made by Mr. O'Brien. No one else spoke in regard to this subject. A motion was made by Council Member Hawkins that the hearing be closed, seconded by Council Member Zarsky and passed unanimously. A motion was made by Council Member Hawkins to adopt the recommendation of the City staff and that the ordinance setting the new rates be brought forward; seconded by Council Member Zarsky. Mayor Jones referred to the question as to whether this type of hearing should be conducted by the City Council. He stated that he felt that the City does have such a responsibility to set rates for utility companies. He Minutes Regular Council Meeting June 30, 1982 Page 17 expressed the opinion that the City should grant some increase in order to assure the citizens of a source of power. Council Member Hawkins expressed appreciation to Touche Ross Company for their study because they have very adequately represented the cities in this matter. Council Member Zarsky reminded the Council that the last time CP&L appeared before them requesting a rate increase, a compromise on the amount was reached. He pointed out that evidently it was adequate since they did not asked for another rate increase for 211 years. Mr. Zarsky stated that he would like to think that the company would agree with this compromise. Council Member Dunphy stated that although he does hate to see his electric bill go up and he hates to see other citizens have increases, he knows that the City must rely on Touche Ross and their recommendation and stated that he feels that the recommended increase will allow CP&L an opportunity to continue to provide service. He expressed appreciation to CP&L's attitude to the Council because they have not indicated that this is an exercise in futility even though it is well known that they may appeal the recommendation to the Public Utility Commission. . The motion to approve the staff's recommended rate increase and call for the ordinance passed by the following vote: Jones, Dumphy, Hawkins and Zarsky voting "aye"; Turner, Gulley and Kennedy "absent." * * * * * * * * * * * * * There was no discussion on the ordinances; City Secretary Read polled the Council for their votes; and the following ordinances were approved: FIRST READING: ESTABLISHING A CABLE COMMUNICATIONS COMMISSION, PROVIDING RULES FOR MEMBERSHIP AND ORGANIZATION, AND OUTLINING ITS DUTIES. The above ordinance was read for the first time and passed to its second reading by the following vote: Jones, Dunphy, Hawkins and Zarsky voting "Aye"; Turner, Gulley and Kennedy "absent". ' FIRST READING: ORDERING AN ELECTION TO BE HELD IN THE CITY OF CORPUS CHRISTI, TEXAS, ON THE 14TH DAY OF AUGUST, 1982, UPON THE QUESTION OF ADOPTING AN AMENDMENT TO THE CITY CHARTER OF THE CITY OF CORPUS CHRISTI, TEXAS, AND THAT SUCH ELECTION SHALL BE HELD JOINTLY WITH THE CORPUS CHRISTI INDEPENDENT SCHOOL DISTRICT ELECTION; SETTING FORTH THE PROPOSITION TO BE VOTED ON AT SAID ELECTION; AND PROVIDING FOR SEVERABILITY. The above ordinance was read for the first time and passed to its second reading by the following vote: Jones, Dumphy, Hawkins and Zarsky voting "Aye"; Turner, Gulley and Kennedy "absent". Minutes Regular Council Meeting June 30, 1982 Page 18 ORDINANCE NO. 17097: AUTHORIZING AN APPRAISAL AGREEMENT WITH THOMAS F. DORSEY IN CONNECTION WITH ACQUISITION OF TWO PARCELS NEEDED FOR THE SPOHN HOSPITAL AREA STREET IMPROVE- MENTS AND APPROPRIATING $1,250 FOR SAID APPRAISAL SERVICES; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance was passed by the following vote: Jones, Dumphy, Hawkins and Zarsky voting "Aye"; Turner, Gulley and Kennedy "Absent". ORDINANCE NO. 17098: CLOSING THE 40 -FOOT RIGHT OF WAY ADJACENT TO LOTS 1 AND 2, SECTION 26 AND LOTS 31 AND 32, SECTION 27, FLOUR BLUFF AND ENCINAL FARM AND GARDEN TRACTS; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance was passed by the following vote: Jones, Dumphy, Hawkins and Zarsky voting "Aye"; Turner, Gulley and Kennedy "Absent". ORDINANCE NO. 17099: AMENDING THE CITY CODE OF ORDINANCES, BY AMENDING CHAPTER 36, PARKS, RECREATION, CULTURAL AND LEISURE TIME ACTIVITIES, ARTICLE I, IN GENERAL, BY ADDING THERETO REGULATION OF CAMPING AND OTHER ACTIVITIES IN CERTAIN PARKS AND PUBLIC AREAS; PROVIDING FOR REPEAL; PROVIDING FOR SEVERANCE; PROVIDING FOR PUBLICATION AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance was passed by the following vote: Jones, Dumphy, Hawkins and Zarsky voting "Aye"; Turner, Gulley and Kennedy "Absent". ORDINANCE NO. 17100: CLOSING AND ABANDONING A 5 -FOOT UTILITY EASEMENT IN LOT 35, BLOCK 2, BRECKENRIDGE UNIT 1, AS RECORDED IN VOLUME 46, PAGES 131-132, MAP RECORDS, NUECES COUNTY, TEXAS, SUBJECT TO REPLATTING; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance was passed by the following vote: Jones, Dumphy, Hawkins and Zarsky voting "Aye"; Turner, Gulley and Kennedy "Absent". ORDINANCE NO. 17101: AMENDING SECTION 53-250, SCHEDULE I, ONE-WAY STREETS AND ALLEYS. The above ordinance was read for the third time and passed by the following vcte: Jones, Dumphy, Hawkins and Zarsky voting "Aye"; Turner, Gulley and Kennedy "Absent". ORDINANCE N0. 17102: AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT FOR GRAZING PURPOSES WITH ARTURO BAYARENA. The above ordinance read for the third time and passed by the following vote: Jones, Dumphy, Hawkins and Zaraky voting "Aye"; Turner, Gulley and Kennedy "Absent". OFDINANCE NO. 17103: AMENDING THE ZONING ORDINANCE UPON APPLICATION OF JACK RYAN BY CHANGING THE ZONING MAP IN REFERENCE TO PORTIONS OF LOT 4, SECTION 30, AND LOT 5, SECTION 31, FLOUR BLUFF AND ENCINAL FARM AND GARDEN TRACTS FROM "R -1B" ONE -FAMILY DWELLING DISTRICT TO "A-2" APARTMENT HOUSE DISTRICT AND DECLARING AN EMERGENCY. Minutes Regular Council Meeting June 30, 1982 Page 19 The Charter Rule was suspended and the foregoing ordinance was passed by the following vote: Jones, Dumphy, Hawkins and Zarsky voting "Aye"; Turner, Gulley and Kennedy "Absent". ORDINANCE NO. 17104: AMENDING THE ZONING ORDINANCE UPON APPLICATION OF H. W. REAGAN BY CHANGING THE ZONING MAP IN REFERENCE TO LOTS 5, 6, 11 AND 12, BLOCK 12; LOTS 1, 2, 3, 4, 7, 8 AND 9, BLOCK 13, CALALLEN TOWNSITE AND A PORTION OF THE GREGORIO FAR/AS GRANT A-592 FROM "R -1B" ONE -FAMILY DWELLING DISTRICT TO "R-2" MULTIPLE DWELLING DISTRICT AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance was passed by the following vote: Jones, Dumphy, Hawkins and Zarsky voting "Aye"; Turner, Gulley and Kennedy "Absent". ORDINANCE NO. 17105: AMENDING THE ZONING ORDINANCE UPON APPLICATION OF FOUR WEST, INC. FOR AN EXCEP- TION OF THE STANDARD SCREENING FENCE REQUIREMENT ALONG THE REAR PROPERTY LINE CF LOT 2-D, ROLLING ACRES; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance was passed by the following vote: Jones, Dumphy, Hawkins and Zarsky voting "Aye"; Turner, Gulley and Kennedy "Absent". ORDINANCE N0. 17106: AMENDING THE ZONING ORDINANCE UPON APPLICATION OF MYLES A JOHNSON HY CHANGING THE ZONING MAP IN REFERENCE TO TRACT 1, A PORTION OF BOB -ROSE ADDITION AND TRACT 2, A PORTION OF BOB -ROSE ADDITION AND ADDITION 2 FROM "R -1B" ONE -FAMILY DWELLING DISTRICT TO "T 1A" TRAVEL TRAILER PARK DISTRICT ON TRACT 1 AND "T -1B" MOBILE HOME PARK DISTRICT ON TRACT 2; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance was passed by the following vote: Jones, Dumphy, Hawkins and Zarsky voting "Aye"; Turner, Gulley and Kennedy "Absent". Mayor Jones called for the City Manager Report. City Manager Martin informed the Council that the Corpus Christi Housing Finance Corporation had received a Aa rating on the single family mortgace program; the bonds were sold; and the program is now under way. Mr. Martin stated that he does not feel that this bond program will have any adverse effect on the City's other municipal bonds. * * * * * * * * * * * * * Mayor Jones called for petitions or information from the audience on matters not scheduled on the agenda. Mr. Walter Miller, 1007 Furman Avenue, pointed out to the Council that Furman Avenue was a very depressed area of the City and citizens have purchased homes in that area and are in the process of renovating them and improving the entire street. He invited the Council to attend their 5th Annual Fourth of July Picnic which begins at 5:00 p.m. He stated that the 1000 block of Furman Avenue will be closed and they hope to have an old-fashioned block picnic. Minutes Regular Council Meeting June 30, 1982 Page 20 Mr. Bill Dominy, 5604 old Brownsville Road, reminded the Council that he had appeared before them representing the National Kidney Foundation requesting a street closing for their chili cook -off. He stated that he was of the opinion that they had resolved all of the concerns of Chief Bill Banner and the event was very successful. He stated that he wa:. speaking on another matter at this time representing Service Industries. He explained that a few months ago they had obtained a permit to construct a commercial building on Horne Road; the building was nearly completed when they decided to add on to the building. He stated that they obtained the proper legal information and a plat plan; they acquired a lot which they thought was legally platted and on which a building was constructed to take care of their anticipated growth. He explained that a mistake was made because there are three parcels of land in the area which were never platted and his company has nearly completed construction of the building. He continued his presentation by stating that a week ago Monday, an employee of the Water Division informed them that they were not allowed two taps on one piece of property. He stated that they had informed the gentleman that it was actually three lots, and at that time, he discovered that there aro two lots that have never been platted. He noted that the last addition to their building ie a separate operation and there is a need for an additional water tap. He ccntinued by stating that they obtained a plat last week of the unplatced lot, and city employees have informed him that a water tap will not be available until that plat is officially approved. He urged the Council to do something to facilitate the installation of the water tap at 2346 Horne Road. He expressed the opinion that someone in authority should authorize a water tap for them before the plat is approved since it was just an oversight. City Manager Martin stated that the staff will investigate this and if it is as simple as Mr. Dominy described and there are no other problems, the water tap can be approved. Mayer Jones informed Mr. Dominy that City Manager Martin will investigate this matter the following morning and provide the Council with a report in their Friday packets. There oeing no further business to come before the Council, on motion by Council Member Hawkins, seconded by Council Member Zarsky and passed unanimously, the Regular Council Meeting was adjourned at 5:58 p.m., June 30, 1982.