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HomeMy WebLinkAbout12023 ORD - 04/24/1974JRR:jkh:4- 19 -74; 1st AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE A COMPROMISE SETTLEMENT AGREEMENT IN THE CASE OF CENTRAL P014ER AND LIGHT COMPANY VS. CITY OF CORPUS CHRISTI, ET AL, NO. 118,946 -B, IN THE DISTRICT COURT OF NUECES COUNTY, TEXAS, 117th JUDICIAL DISTRICT, A TRUE COPY OF WHICH, MARKED EXHIBIT "A ", IS ANNEXED HERETO AND BY THIS REFERENCE INCORPORATED HEREIN FOR ALL PURPOSES; PROVIDING SEVERABILITY; AND DECLARING AN EMERGENCY. WHEREAS, the City of Corpus Christi, by and through its City Council and the Central Power and Light Company, parties in the above referenced cause, have compromised and settled all matters in controversy between them in the above captioned cause; and WHEREAS, it is the finding of the City Council that the authorization and execution of the attached Compromise Settlement Agreement, marked Exhibit "A ", annexed hereto and incorporated herein, is in the public interest and is promotive of the general welfare of the inhabitants of the City of Corpus Christi; and WHEREAS, the City Council has expressly instructed its legal counsel to prepare all legal documents necessary to the execution of said Compromise Settlement Agreement: NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The annexed Compromise Settlement Agreement, marked Exhibit "A ", by this reference incorporated herein for all purposes, is hereby expressly approved and the City Manager of the City of Corpus Christi is hereby authorized and directed to enter into said annexed Compromise Settlement Agreement, and to do all things necessary, by him personally and by his duly authorized agents and representatives, to implement said Compromise Settlement Agreement and enforce the same in the name of the City of Corpus Christi, Texas. SECTION 2. If for any reason any section, paragraph, subdivision, clause, phrase, word, or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction it shall not affect any other section, paragraph, subdivision, clause, phrase, 12023 • s word, or provision of this ordinance, for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word, or provision hereof be given full force and effect for its purpose. SECTION 3. The necessity to authorize the execution of the aforesaid Compromise Settlement Agreement at the earliest practicable date in order that the matters in controversy may be resolved creates a public emergency and an imperative public necessity requiring the suspension of the Charter rule that no ordinance or resolution shall be passed finally on the date of its introduction but that such ordinance or resolution shall be read at three several meetings of the City Council, and the Mayor having declared such emergency and necessity to exist, and having requested the suspension of the Charter rule and that this ordinance be passed finally on the date of its introduction and take effect and be in full force and effect from and after its passage, IT IS ACCORDINGLY SO ORDAINED, this thel�— day of April, 1974. ATTEST: City SecretaiV MAYOR an'—� APP 0 ED: THE CITY OF CORPUS CHRISTI, TE DAY OF APRIL, 1974: 1��4 S �� f,�C ACr r City Attorney W1,W/1w:4/l9/74 0 COMPROMISE SETTLEMENT AGREEMENT THE STATE OF TEXAS I KNOW ALL MEN BY THESE PRESENTS THAT: COUNTY OF NUECES Z WHEREAS, Central Power and Light Company did heretofore, on or about the 6th day of September, 1972, file with the City of Corpus Christi its application for increase in electric utility rates regulated by the said City; and after hearing and consideration the City Council of said City did pass an Ordinance, being Ordinance No. 11392 effective on the 21st day of March, 1973, granting a portion of the increase in electric rates requested by said company; and, WHEREAS, following Motion for Rehearing duly filed by Central Power and Light Company and the same not being acted upon within sixty (60) days, Central Power and Light Company did file suit, being Cause No. 118,946 -B in the 117th District Court of Nueces County, Texas, styled Central Power and Light Company vs. City of Corpus Christi, et al, wherein permanent injunction against enforce- ment of said Ordinance No. 11392 was sought by Plaintiff in said suit; and after due hearing and presentation of evidence by all parties, temporary injunction against enforcement of said Ordinance was Ordered by the Court and Central Power and Light Company was by such Order permitted to apply those rates applied for by it in the afore- mentioned application of 1972; and, WHEREAS, the parties hereto mutually agree it would be to the benefit of all the citizens of Corpus Christi that said Ordinance No. 11392 of the City of Corpus Christi be repealed and that the litigation above mentioned be terminated and the expense and conflict associated therewith be ended, NOW, THEREFORE, it is agreed by and between the parties hereto: EXHIBIT "A" That upon adoption of the settlement ordinance to which copy of this Agreement is attached as an exhibit and upon final passage of a new Electric Utility Rate Ordinance repealing Ordinance No. 11392 and providing for and permitting Central Power and Light Company to charge those rates for electric service within the City of Corpus Christi applied for by it in 1972 and applied by it under the Order Granting Temporary Injunction in Cause No. 118,946 -B in the District Court of Nueces County, Texas, with, however, reduction of twenty -five cents (25¢) in the residential minimum rate applicable to service furnished within the City of Corpus Christi, an agreed Judgment will be presented the Court for approval under the terms of which Judgment permanent injunction will issue enjoining enforce- ment of Ordinance No. 11392 of the City of Corpus Christi, Texas, by Defendants or their successors in office; such Judgment to be sub- stantially in the form of Exhibit I attached hereto and made part hereof by reference; and it is, further, AGREED that upon the occurrence of the conditions above stated Central Power and Light Company will execute or cause to be executed all necessary documents, instruments and renditions to cause its property known as the Barney M. Davis Power Station to become annexed to the City of Corpus Christi within the calendar year 1974 and to be within the city limits of said City and be thereby subject to taxation by said City upon a rendered value sufficient to produce not less than Four Hundred Thousand ($400,000.00) Dollars ad valorem tax revenue to said City, due and payable in and for the year 1975; and it is, further, AGREED that, with respect to the aforementioned litigation the City and Central Power and Light Company will each pay such legal fees and expenses as may have been incurred in their respective be- half and will divide equally any costs of suit taxed by the Clerk of said Court; and it is, further, -2- AGREED that Central Power and Light Company, in accord with the provisions of the Charter of the City of Corpus Christi, will pay one -half (1/2) of the total fee charged by Dr. John R. Langum as expert witness to the City in connection with the hearing conducted before the City Council relative to the application for rate increase filed by Central Power and Light Company in 1972, such one -half (1/2) payment not to exceed the sum of Ten Thousand One Hundred Fifty One and 93/100 ($10,151.93) Dollars; IN TESTIMONY WHEREOF we, the undersigned persons being duly authorized to execute this Agreement on behalf of the City of Corpus Christi, Texas, and Central Power and Light Company, do here- unto place our hands this day of , 1974. ATTEST: CITY OF CORPUS CHRISTI, TEXAS By R. Marvin Townsend, City Manager of City of Corpus Christi, Texas T. Ray Kring, City Secretary of City of Corpus Christi, Texas CENTRAL POWER AND LIGHT COMPANY ATTEST: By. R. E. Horine, Executive Vice President of Central Power and Light Company Secretary of Central Power and Light Company APPROVAL OF AGREEMENT MADE PER EXPRESS INSTRUCTIONS OF THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, AND AS TO LEGAL FORM: James R. Riggs, City Attorney of City of Corpus Christi, Texas -3- 17/ 14.: VIVW /lw NO. 118,946 -B CENTRAL POWER AND LIGHT COMPANY X VS. X CITY OF CORPUS CHRISTI, ET AL X IN THE 117TH JUDICIAL DISTRICT COURT OF NUECES COUNTY, TEXAS • FINAL JUDGMENT BE IT REMEMBERED that on this day of , 1974, came on to be heard the above entitled and numbered cause, wherein Central Power and Light Company is Plaintiff and the City of Corpus Christi, Texas, and the Mayor and members of the City Council of Corpus Christi, Texas, in their representative capacities, are Defendants,.and came the parties by and through counsel of record, and announced ready for trial and a jury being waived, the parties announced unto the Court that they had agreed and compromised all issues.between them under the terms of which agreement the temporary . injunction heretofore issued in this cause insofar as the,same en- joins enforcement of Ordinance No. 11392 of the City of Corpus Christi, Texas, should be made permanent, and the*Court, having considered the statement of the parties and the evidence presented unto the Court and being of the opinion that the evidence submitted to the Court supports the issuance of a permanent injunction in this cause against the enforcement of Ordinance No. 11392 of the City of Corpus Christi, Texas, by reason of the fact that such Ordinance deprives the Plaintiff of its right to realize a fair return on the fair value of its property, in accordance with the form of such permanent injunction attached to this Judgment and in all things made a part hereof, it is, accordingly, ORDERED, ADJUDGED and DECREED that the parties Defendant hereto, the City of Corpus Christi, Texas, the Mayor and members of the City Council, and their successors in office be and they are hereby enjoined permanently from the enforcement or attempted enforce- ment of Ordinance No. 11392 of the City of Corpus Christi, Texas, all EXHIBIT I in accordance with the Writ of Permanent Injunction attached hereto and made a part hereof; and it is, further, ORDERED, ADJUDGED and DECREED that no refund to customers of Central Power and Light Company, as conditionally set forth in this Court's previous Order Granting Temporary Injunction, is due or payable to such customers and, therefore, Central Power and Light Company should be and hereby is Released and Discharged of and from any and all obligation upon its Bond previously filed in this cause, and it is, further,- ORDERED, ADJUDGED and DECREED that all costs of this suit be and the same are taxed equally one -half (1/2) against parties Plaintiff and Defendant in this cause, for which let execution issue. SIGNED and ENTERED as the Order of this Court this day of 1974. Paul A. Martineau, PRESIDING JUDGE APPROVED AND ENTRY REQUESTED: CENTRAL POWER AND LIGHT COMPANY, PLAINTIFF By Attorney of Record CITY OF CORPUS CHRISTI, ET AL, DEFENDANTS By Attorney of Record PER EXPRESS INSTRUCTION OF THE CORPUS CHRISTI CITY COUNCIL AND APPROVED AS TO LEGAL FORM. -2- • 0 WRIT OF INJUNCTION THE STATE OF TEXAS TO CITY OF CORPUS CHRISTI, TEXAS, AND JASON LUBY, AS MAYOR, AND THOMAS V. GONZALES, REV. HAROLD BRANCH, GABE LOZANO, J. HOWARD STARK, RICARDO GONZALEZ, AND JAMES T. ACUFF, AS MEMBERS OF THE CITY COUNCIL OF CORPUS CHRISTI, TEXAS, G R E E T I N G S: WHEREAS, Central Power and Light Company filed its Petition in the 117th District Court of Nueces County, Texas, on the 27th day of July, 1973, in a suit numbered 118,946 -B, on the docket of said Court, wherein Central Power and Light Company is Plaintiff and City of Corpus Christi, Texas, and Jason Luby, as Mayor, and Thomas V. Gonzales, Rev. Harold Branch, Gabe Lozano, J. Howard Stark, Richardo Gonzalez, and James T. Acuff, as members -of the City Council of Corpus Christi, Texas, are Defendants, alleging that Ordinance No. 11392 of the City of Corpus Christi, Texas, deprives Plaintiff of its right to realize a fair return upon the value of its property and that Defendants should be enjoined from the enforcement thereof, and the Honorable Paul A. Martineau, Judge of said Court,'upon hear- ings had upon such Petition after due notice to Defendants, made and entered the order and Final Judgment to which this Writ is attached; and WHEREAS, the Court finds and decrees in such Final Judg- ment that Defendants be, and they hereby are, Permanently Enjoined from enforcing or attempting to enforce Ordinance No, 11392 of the City of Corpus Christi, Texas; and WHEREAS, by reason of the issuance of this Writ of Permanent Injunction Central Power and Light Company should be and hereby is Released and Discharged of and from any and all obligation upon its Bond in the sum of One Million Five Hundred Thousand ($1,500,000.00) Dollars payable and conditioned as required by law and the previous Order of the Judge of this Court, now You are, therefore, commanded to obey and execute the Order of the Judge. WITNESS MY HAND AND SEAL OF OFFICE as Clerk of the 117th District Court of Nueces County, Texas, this the day of 1974. Oscar Soliz, District Clerk, 117th District Court, Nueces County, Texas CERTIFICATE OF SERVICE Service of the above and foregoing Writ upon the Defendants, and each of them, has been made this day of , 1974, by personally serving the Honorable James R. Riggs, City Attorney of the City of Corpus Christi, whose certification is here made that he has accepted service of the same on behalf of each and all said Defendants. JAMES R. RIGGS W. N. WOOLSEY -2- 7 Corpus Christi, Texas • daY of , 19—Z'4e" TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance, a public emergency and imperative necessity exist for the suspen- sion 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, request that you suspend said Charter rule or requirement and pass this ordi- nance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, MAYOR THE CITY OF CORPUS CHRISTI, TEXAS The Charter rule was suspended by the following vote: Jason Luby James T. Acuff Rev. Harold T. Branch Thomas V. Gonzales Ricardo Gonzalez Gabe Lozano, Sr. J. Howard Stark The above ordinance was passed by the following vote: Jason Luby James T. Acuff Rev. Harold T. Branch Thomas V. Gonzales Ricardo Gonzalez Gabe Lozano, Sr. J. Howard Stark