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HomeMy WebLinkAboutMinutes City Council - 12/28/1962CITY OF CORPUS CHRISTI, TEXAS RECESSED REGULAR COUNCIL MEETING December 28, 1962 4:50 p.m. PRESENT: Mayor Ben F. McDonald Commissioners: Dr. James L. Barnard City Manager Herbert W. Whitney J. R. de Leon City Attorney I. M. Singer W. J. Roberts City Secretary T. Ray Kring an Young Mayor Ben F. McDonald called the recessed meeting to order at 4:50 p.m. on December 28, 1962. City Secretary T. Ray Kring called the roll of those in attendance, and Mayor McDonald declared the recessed meeting in order to proceed. City Manager Whitney presented the following two ordinances for the Council's consideration, each of which he read, explaining the essential items and provisions. ORDINANCE NO. 6740 AUTHORIZING AND DIRECTING THE CITY MANAGER, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TO EXECUTE AN OPERATING AGREEMENT BETWEEN CORPUS CHRISTI MUNI- CIPAL GAS CORPORATION AND THE CITY OF CORPUS CHRISTI, A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, SETTING FORTH THE TERMS OF OPERATION BY THE CITY OF A GAS DISTRIBUTION SYSTEM IN CERTAIN AREAS OF THE CITY OF CORPUS CHRISTI; AND DECLARING AN EMERGENCY. The Charter rule was suspended by the following vote: Mayor McDonald, Commissioners Barnard, de Leon, Roberts, and Young all present and voting "Aye", and Commissioners Swantner and Maldonado absent. The foregoing ordinance was passed by the following vote: Mayor McDonald, Commissioners Barnard, de Leon, Roberts, and Young all present and voting "Aye", and Commissioners Swantner and Maldonado absent. ORDINANCE NO. 6741 AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE, FOR AND ON BEHALF OF THE CITY, A C0LLATERAr AGREEMENT BETWEEN HOUSTON NATURAL GAS CORPORATION, CORPUS CHRISTI MUNICIPAL GAS CORPORATION AND THE cm OF CORPUS CHRISTI, A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, SO AS TO PROCEED WITH THE CLOSING OF THE SALE OF THE SYSTEM UNDER THE CONTRACT OF SALE HERETOFORE EXECUTED BY SAID PARTIES; AND DECLARING AN EMERGENCY. The Charter rule vas suspended by the following vote: Mayor McDonald, Commissioners Barnard, de Leon, Roberts, and Young all present and voting "Aye", and Commissioners Svantner and Maldonado absent. The foregoing ordinance vas passed by the following vote: Mayor McDonald, Commissioners Barnard, de Leon, Roberts, and Young all present and voting "Aye", and Commissioners Svantner and Maldonado absent. • City of Corpus Christi, Texas Recessed Regular Council Meeting December 28, 1962 Page 2 Mayor McDonald explained that the Council has been advised by Mr. Sheridan C. Lewis, president of Southern Community Gas Co., of his willing- ness to negotiate a similar sale to that of Houston Natural Gas Corp., in the event that such sale by Houston Natural vas consummated, and appointed Commissioner Barnard as Chairman, with Commissioners Young, de Leon, and Maldonado, as a Sub -committee of the Council to review with the City Staff all matters pertaining to such a sale. John 0. Winter asked if it was true that the City could have pur- chased Houston Natural Gas Corp. facilities in 1959 for 2i million dollars; if the present purchase is the same as it would have been in 1959; and if the value has gone up to the present purchase price in such a short time. Mayor McDonald explained that the purchase could have been made in 1959 for 2i million dollars, but that the present purchase price, in the opinion of the appraisers, is more than justified due to the fact that there are almost double the number of customers, and that it includes real estate and buildings, and large transmission lines not previously contemplated, and that the present figure is considered fair to both parties. He further ex- plained the provision whereby Houston Natural Gas receives 5% interest on the bonds, and 10% for 6 months only, in the event the Internal Revenue Depart- ment rules the bonds are not tax free, in which case the citizens will have an opportunity to authorize the issuance of bonds to retire the bonds issued to acquire the system and avoid the higher interest rate. In answer to questions from Mrs. Elizabeth Airheart, it was explained that the formal contracts authorized by the ordinances which have been passed and approved will be executed, together with all documents and conveyances, as soon as all are in final approved form; that the election on the matter of a franchise for the Municipal Gas Corp. referred to in the petitions recently re- ceived will be called for April 2, 1963, as required by law; and that prior to such election, the Corpus Christi Municipal Gas Corp. will operate and pay the same 2% gross receipt tax as does the Southwestern Bell Telephone Co. and any other utility company presently operating within the City without a franchise. Paul Nye commended the Mayor and Council on the handling of this transaction and the acquisition of this facility as a great forward step for the benefit of the City. City of Corpus Christi; Texas Recessed Regular Council Meeting December 28, 1962 page 3 It was announced that the regular Monday night Workshop Session of the Council will not be held on New Year's Eve, tut will be held during a luncheon meeting on Wednesday, January 2, 19630 The request of the Junior College District to hold a joint election on January 26, 1963, was approved subject to the approval of the City Man-.;_;er and the turner Gas Corp. as to the mechanics and costs involved. Mayor McDonald recessed the meeting subject to call.