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.