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HomeMy WebLinkAboutMinutes City Council - 12/13/1972MINUTES CITY OF CORPUS CHRISTI, TEXAS REGULAR COUNCIL MEETING December 13, 1972 3:00 P. M. PRESENT: Mayor Ronnie Sizemore Mayor Pro Tem Chas. A. Bonniwell Commissioners: Roberto Bosquez, M.D. Rev. Harold T. Branch Thomas V. Gonzales Gabe Lozano, Sr. J. Howard Stark City Manager R. Marvin Townsend City Attorney James R. Riggs Ass't City Attorney James McKibben City Secretary T. Ray Kring • Mayor Ronnie Sizemore called the meeting to order in the Council Chamber of the City Hall. The Invocation was given by The Reverend Stanley Wehling of Trinity Lutheran Church. City Secretary T. Ray Kring called the roll of those in attendance. The Minutes of the Regular Council Meeting of November 29, 1972, were approved as submitted to the Council. The Student Council of Incarnate Word Junior High School was recognized and Mayor Sizemore presented Certificates of Attendance to the .following: Ricky Rios, Linda Rios, Suzanne Wesson, Adrian Salinas, Margaret Olivera, and Mary Helen Nieman. They were accompanied by their sponsor Sister Gloria Esther Garza. Bids were opened and read by Director of Engineering Services James K. Lontos for the replacement of approximately 1400 lateral feet of curb for the area of North and South Shoreline, from the following firms: E. J. Netek; Heldenfels Brothers, and R, S. Black Company. The foregoing bids were tabled for 48 hours as required by the City Charter and referred to the City Manager for tabulation and recommendation. City Manager Townsend presented the request of Del Mar College to close that portion of Carter Street located between Ayers Street and Naples Street. He stated that the City has gas, water and sewer lines located in the area proposed to be closed for which easements would need to be retained. He stated that Del Mar College has acquired all the property along this street except for two lots at the Corner of Ayers and Carter, and that he had not inquired of Del Mar College officials whether or not this portion of the street would remain open for public ''ccess. He stated it was the recommendation of the Staff that the street be closed subject to retention of the existing utility easements and subject to the street remaining open at the end of Ayers on Lots 10, 11 and 12, fronting on • • Minutes Regular Council Meeting December 13, 1972 Page 2 private property. Mr. S. W. Gary, attorney representing Del Mar College, presented a drawing showing the portion of the street proposed to be closed. He stated the closing is being requested because a portion of the street would be used in the future for a pedestrian walkway between the buildings in front of the Administra- tion and Library Buildings; that the proposal is to close to vehicular traffic all the way to Ayers Street but open to pedestrian traffic and with no intention of barricading or blocking off access into the Del Mar Parking Lot on Naples Street, and that there would be access from Ayers to Naples along Kosar Street. Mr. Buddie Venters, Vice President of Finance of Del Mar College, stated if there is a great deal of opposition about closing the portion abutting Lots 10, 11 & 12, they would leave it open at that point and would prefer that the City maintain and control it, but they would like to have control of traffic along the parking lot. He stated he had discussed this with the owner and operator of Memorial Funeral Home and had thought an agreement had been reached. He emphasized they would cooperate with all concerned, and are only suggesting that the City close this portion of Carter Street as a public thoroughfare, Mr. McCord, Del Mar College Planner, stated the College is experiencing some difficulties relative to the underground utilities; that when there is a need to repair, they are in conflict with the City; that they would like to gain control of all underground utilities on the entire Campus, and would like to have all streets on the Campus closed as public streets, but do not have the financial means to accomplish this. He stated the master plan does not include acquisition of any of the land. Mrs. A. G. Guzman and Mr. Steve Morales, representatives of the Memorial Funeral. Home which abuts Lots 10 and 11, located at t:le corner of Carter and Ayers, spoke in opposition to the proposed closing. Mrs. Guzman stated she was `concerned that the value of the property would be decreased, Mr. Morales stated there would be no effective way to control traffic and student parking around the Funeral Home if the street were made private, and that this ccuid become a serious problem since the College would not have police protection. Motion by Stark, seconded by Branch and passed that the hearing be closed. Motion by Gonzales, seconded by Stark, that Carter Street be closed from Naples to the east line of the parking lot. • • Minutes Regular Council Meeting December 13, 1972 Page 3 Motion by Branch, seconded by Bonniwell and passed, Lozano voting "Nay", that the motion be amended, and that Carter Street from Naples Street to the east property line of Lot 10, of Del Mar College Area, be closed subject to retention of the existing utility easements, and that an ordinance be brought forward effectuat- ing the closing. Mayor Sizemore announced the public hearing scheduled for 4:00 p.m. on assessments for Ayers Street Improvements from Norton to Port Avenue, and approxi- mately 169 feet of Port Avenue at the Intersection of Port and Ayers, City Manager Townsend stated the purpose of the hearing is to comply with the statute regarding paving assessments; that testimony will be heard from the Director of Engineering Services and evaluation testimony from a real estate appraiser to substantiate the assessments which appear on the assessment roll, and that the hearing is to form a basis on which the Council, acting as a legis- lative body, would determine or establish the assessments on the abutting prop- erties. He stated Assistant City Attorney James McKibben would conduct the hearing. Mr. McKibben interrogated the Director of Engineering Services James K. Lantos as to his occupation, time of residence in the City; formal qualifications, and familiarity with the subject project, and asked Mr. Lontos to present the plans and specifications. Mr. Lontos described the overall project in detail from a strip map; explained the nature, extent and specifications; stated that these improvements wi1,1 be constructed by the Texas Highway Department in cooperation with the City of Corpus Chrjsti and under the provisions of Urban Systems Program; that the construction will consist of pavement in accordance with the Highway Department plans including installation of curb and gutter, sidewalk, driveways and header curbs. He explained that the pavement portion of the project is the responsibility of the Highway Department, and that the drainage, right-of-way, utilities as concrete work, will be the responsibility of the City and the obligation of the property owners. He explained that the assessment rates have been determined in accordance with the present policy of the City and by applying the unit prices obtained from the low bid submitted by Heldenfels Brothers to the linear footage of private properties abutting the streets; that full, credits have been given properties which have in place the improvements that meet the City Specifications, • Minutes Regular Council Meeting December 13, 1972 Page 4 and that the assessments have been calculated only for the portion which is to be paid for with City funds. He stated the total contract price is $445,367.70; total State cost, $256,414.75; gross total City cost, $188,952.95; total assessments, $59,451.85, and total net City cost, $129,501.10. Mr. Lontos explained the method provided for payment of the assessments, He also pointed out the savings to the property owners because of the State participation in the project. Mr. Lontos noted that all homes on Ayers Street back onto Ayers and that there will be no driveways except on the property of Mrs. T. C. Green at 3706 Ayers, listed on the preliminary assessment roll as Item #39, Mrs. Nell Short, Items 4-C and 5-C, questioned the effect of the improve- ments on the headin parking in front of her restaurant at this location. She stated she had kept this area repaired for 20 years and felt it should remain for parking. She objected to the sidewalks, stating the existing sidewalk was in good condition and did not need to be replaced. Mr. Willie Beasley, 4001 Ayers, Items 50-C and #51.,C, objected to the elimination of headin parking at this location. Mr. Lontos explained that there is p drive- way to this property off Pearce Street, but if the owner desires a driveway off Ayers, there would be no reason not to construct one. Mr. Harold Carr testified as to his qualifications as a real estate appraiser, time of residence in the City, occupation, and familiarity with the subject project. He filed for record a statement of his qualifications, He described the general area and uses, stating that he was familiar with the project and had personally examined each and every parcel of land, and in his opinion, each of the properties, so assessed, would be enhanced in value at least in the amount of the assessments with the exception of the following: item #42, Mercantile National Bank Property - the lot is irregular in shape, very narrow in width, and it is recommended that the assessment be reduced from 4,2,142.38 to $1-276.42. items #10-B through Item #38-B - Lots beginning at the Horne Road Inter- throuyl. the Roosevelt Street Intersection to Lot 11, Block 3, Arcadia Villpge, hack: up tc Ayers Street with a 15 foot strip between the property line and the right of war, and it is recommended that all these parcels be exempt and no assessments be imposed, • Minutes Regular Council Meeting December 13, 1972 Page 5 as there would Be, in his opinion, no enhancement in value as a result of the improvements. items #57-B, 58-B, 59-B, 60-B, 61-B and 62-B - these lots back up to Horne Road, do not have the 15 feet of park strip, some have fences, and others have gates or hedges, are being assessed for sidewalks, and it is recommended that these assessments be deleted because there would be, in his opinion, no monetary value as a result of the installa- tion of sidewalks. Persons in the audience were given an opportunity to state their approval or objections to the assessments. Mr. C. A. Norris, Item #20-B, complained of the unsightly condition of the 15 -foot park strip abutting properties along this street. He stated he had maintained the portion in front of his property for the past several years and would like to have something done about it, He complained that some of the property owners maintain the park area and others allow it to grow up in weeds; that some have fences and others have hedges; and that the City mows those areas which are not fenced, He stated he felt the park strip should either be given back to the property owners or some other arrangement made for its main- tenance. He stated he felt these property owners should have the option to request driveways. City Manager Townsend explained that since the area is a dedicated park and not an easement, the City does not have the authority nor the mechanics to turn it back to the property owner but could require that every property owner move the encroachments back to the property line. Mr. Norris was advised that if he requested a driveway, he would then be assessed for curb and gutter unless there were restrictions. Mr. Carr stated there could be restrictions prohibiting this, but it should be checked. Mr. Bill Brown, 7141 Pharaoh Drive, appeared representing the E. C. Petersen Properties, items #8-C and #9-C, and requested that credit be given for curb and Sutter and sidewalk along these properties since the existing curb and gutter and sidewalk Leen previously installed under an agreed plan between the City and Mr, Peterson and ere according to the then standard specifications. He stated the sidewalks were installed as a convenience to the public, and if Heldenfels current prices were applied, it would L� t some $2,000 to replace the sidewalks. He stated he felt some additional credit should • • Minutes Regular Council Meeting December 13, 1972 Page 6 be allowed. He requested that the Council consider their request to substitute 1215 feet of header curb at $5.33 per I,f. for like amount of roll type curb and gutter at a cost of $3.04 per I.f., stating that the roll curb is more economically feasible and provides better drainage, and if this request is granted, they will not oppose the improvements and the assessments. City Manager Townsend stated the City would have no objections to roll type curb if plans were submitted to meet City standards, but this would depend on design. He stated this would be checked and worked out in the Engineering Deportment. Mr. H. C. Heldenfels, Jr., employee of Heldenfels Brothers Contractors, expressed disagreement with Mr. Brown relative to header curb vs, roll type curb. He stated the difference would be in maintenance of concrete rather than asphalt. Mrs. Lillie Cavazos, Item #64-C, stated that her property had been listed as facing on Ayers, but explained that it is located at the corner of Carlton and Horne Road and faces the alley. She requested that she be permitted to retain the headin parking area off Home Road for two cars. Mrs. Cavazos was advised that this would involve a zoning matter, that she should submit a zoning application through usual procedures, and that this would have to be done before the improvements are begun. She was also advised that only about two-thirds of her property is involved and the balance will be assessed when Horne Road is improved. The savings of State Highway participation on this project were pointed out. Mrs. Nell Short, Items 4-C and 5-C, stated she was opposed to the assess- ment for sidewalk which would result in her having two sidewalks in front of her property. Motion by Branch, seconded by Bosquez and passed, that the hearing be closed and taken under advisement and that the Staff give consideration to the foregoing testimonies and submit a revised Assessment Roll. • Minutes Regular Council Meeting December 13, 1972 Page 7 Mayor Sizemore called for the City Manager's Reports. Motion by Branch, seconded by Bosquez and passed, that the City Manager's Reports, Items "a" through "i", excepting Items "g" & "h", be accepted, and that the requests and recommendations be granted and approved as follows: a. That a public hearing be held on January 10, 1973, Special Meeting, at 4:00 p.m., on the following zoning applications: (1) Peterson Properties, Inc. - "B -1A" to "B-4", located on the northeast corner of Prince Drive and South Padre Island Drive. (2) Planning Commission - "B -1A" to "B-4", located on the south side of the 6300 Block of South Padre Island Drive. (3) WHP, Inc. - "R -1B" to "R-2", located south of Williams Drive and east of Rodd Field Road. (4) Corpus Christi Bank & Trust & Winston J. Stevens - "A-1" to "B-1", located on the southeast corner of Nueces Bay Boule- vard and I.H. 37. (5) McDonald's Hamburgers - "B-1" to "B-4", located in the 4400 Block of South Staples Street at the intersection of Landsdown Drive. That a public hearing be held on January 3, 1973, Special Meeting, at 4:30 p.m., on the following zoning application: (1) Gandy -Robertson, Inc. - "B-1" to "B-4", located on the north west corner of Horne Road and Crosstown Expressway. b. That a contract be awarded to Cambridge Wire Cloth Company, Cambridge, Maryland, for one Stainless Steel Belt for Enrico Vacuum Filter at the Broadway Wastewater Treatment Plant, on the basis of their low bid of $4,580.00. Bids were received from four firms. (Bid Tabulation #66-72) c. That a contract be awarded to Imperial Mill & Fixture Company, Corpus Christi, Texas, for the purchase of 35 specimen Storage Cabinets and 175 Specimen Trays for the Corpus Christi Museum on the basis of their low bid of $4,047.75. (Bid Tabulation #67-72) d. That the utility easements along the south line of Lot 1 and the west lira of Lot 1 and Lot 3, Unit 1, Washburn Meadows Addition, located on South Staples Street south of Weber Road, be abandoned subject to being dedicated and existing utility lines being relocated at applicant's expense. The request is from Orthmed Building Corporation, and the affected Departments concur in the abandonment. Minutes Regular Council Meeting December 13, 1972 Page 8 • e. That the General Fund be reimbursed $7,066.88 for park improvements provided during August, September and October, 1972, that appropriations of $4,264.10 be authorized out of No. 291 Park Bond Fund for improvements to Moody Park, Cole Park and Airport Park, and $2,802.87 outtof No. 111 Park Trust Fund for improvements to West Guth Park, Stonegate Park and Nueces River Park, be approved. f. That the City Manager be authorized to execute an agreement with the Estates of Juan A. and Isabel M. Gonzalez authorizing the City of Corpus Christi to take possession of a twenty foot strip of land adjacent to Greenwood Drive needed for improvements to Greenwood Drive, Horne Road to Padre Island Drive. The amount of compensation has not been resolved at this time, and the value of tha20-foot strip will be decided through the usual procedure of either negotiation of condemnation. g. (Re adoption of mobile home pad standards - deferred) h. (Re building permits for installation of mobile homes lots,, end establishment of $5.00 fee - deferred) i, That Lot 3, Block 4, Tierra Alta Addition, located at 1021 22nd Street, be sold to Nueces County Hospital District fof $1,100. The property is being pur- chased by the District, along with other properties in the area to expand their parking facilities. The property was purchased by the City at the Sheriff's second Tax Sale. • Minutes Regular Council Meeting December 13, 1972 Page 9 SECOND READING OF AN ORDINANCE AMENDING THE CORPUS CHRISTI CITY CODE, 1958, AS AMENDED, AND PARTICULARLY AMENDING SECTION 21-155, SCHEDULE III, "PARKING PROHIBITED AT ALL TIMES ON CERTAIN STREETS", BY ADDING THERETO AN ITEM WHICH WILL HAVE THE EFFECT OF PROHIBITING PARKING AT ALL TIMES ON BOTH SIDES OF AIRLINE ROAD, FROM SOUTH ALAMEDA STREET TO OCEAN DRIVE; PROVIDING FOR PUBLICATION; AND DECLARING AN EMERGENCY. The foregoing ordinance was read for the second time and passed to third reading by the following vote: Sizemore, Bonniwell, Bosquez, Branch, Gonzales, Lozano, and Stark, present and voting "Aye", SECOND READING OF AN ORDINANCE AMENDING THE CORPUS CHRISTI CITY CODE, 1958, AS AMENDED, AND PARTICULARLY AMENDING SECTION 21-156, "STOPPING, STANDING OR PARKING PROHIBITED DURING CERTAIN HOURS ON CERTAIN STREETS", BY ADDING THERETO AN ITEM WHICH WILL HAVE THE EFFECT OF PROHIBITING STOP- PING, STANDING OR PARKING DURING CERTAIN HOURS ON THE SOUTH SIDE BUFFALO STREET, BETWEEN ARTESIAN AND CARRIZO STREET; PROVIDING FOR PUBLI- CATION; AND PROVIDING FOR SEVERABILITY. The foregoing ordinance was read for the second time and passed to third reading by the following vote: Sizemore, Bonniwell, Bosquez, Branch, Gonzales, Lozano, and Stark, present and voting "Aye". SECOND READING OF AN ORDINANCE AMENDING THE CORPUS CHRISTI CITY CODE, 1958, AS AMENDED, BY AMENDING SECTION 21-153, SCHEDULE I, "ONE-WAY STREETS AND ALLEYS", BY DELETING THE REFERENCE TO CLIFFORD STREET, BETWEEN ALAMEDA STREET AND SANTA FE STREET, AND IN LIEU THEREOF ADDING A NEW PROVISION SO AS TO PROVIDE THAT TRAFFIC SHALL MOVE IN AN EASTERLY DIREC- TION ONLY ON CLIFFORD STREET, FROM A POINT 290 FEET EAST OF ALAMEDA STREET TO SANTA FE STREET; PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR PUBLICATION. The foregoing ordinance was read for the second time and passed to third reoding by the following vote: Sizemore, Bonniwell, Bosquez, Branch, Gonzales, Lozano, and Stark, present and voting "Aye" ORDINANCE NO, 11198 APPROPRIATING $7,066.88 AS FOLLOWS: $4,264.10 FROM NO. 291 PARK BOND FUND, OF WHICH $2,309.73 IS APPLICABLE TO PROJECT NO. 291-70-10,7; MOODY PARK, $1,168.34 IS APPLICABLE TO PRO- JECT NO. 291-67-6, COLE PARK; $786.03 IS APPLICABLE TO PROJECT NO, 291-70-10.4, AIRPORT PARK; $2,802,78 IS OUT OF NO. 111 PARK TRUST FUND, OF WHICH $395.01 IS APPLICABLE J ACCOUNT 1787 WEST GUTH PARK, $1,546.28 IS APPLICABLE TO ACCOUNT NO. 1767 STONEGATE PARK, AND $861 .49 IS APPLICABLE TO ACCOUN i NO. 1766, NUECES RIVER PARK; AUTHORIZING REIMBURSEMENT OF $7,066.88 TO THE 102 GENERAL FUND, ACTIVITY 4122-603 FOR LABOR, MATERIALS AND EQUIPMENT USED FOR PARK IMPROVEMENTS: AND DECLARING AN EMERGENCY. • Minutes Regular Council Meeting December 13, 1972 Page 10 The Charter Rule was suspended and the foregoing ordinance was passed by the following vote: Sizemore, Bonniwell, Bosquez, Branch, Gonzales, Lozano, and Stark, present and voting "Aye". ORDINANCE NO. 11199 BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, CANVASSING RETURNS AND DECLARING RESULTS OF AN ELECTION ON THE QUESTION OF THE ISSUANCE OF IMPROVEMENT BONDS; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance was passed by the following vote: Sizemore, Bonniwell, Bosquez, Branch, Gonzales, Lozano, and Stark, present and voting "Aye". ORDINANCE NO. 11200 CANVASSING RETURNS AND DECLARING THE RESULTS OF AN ELECTION HELD ON THE 9th DAY OF DECEMBER, 1972, FOR THE PURPOSE OF DETERMINING WHETHER OR NOT THE TERRITORY ADJACENT TO THE CITY OF CORPUS CHRISTI, DESCRIBED IN ORDINANCE NO. 11179, ORDERING SUCH ELECTION, SHOULD BE ANNEXED TO THE CITY OF CORPUS CHRISTI, TEXAS, AND DECLARING THE RESULTS OF SUCH ELECTION; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance was passed by the following vote: Sizemore, Bonniwell, Bosquez, Branch, Gonzales, Lozano, and Stark, present and voting "Aye". ORDINANCE NO. 11201 BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, RECEIVING INTO AND ANNEXING TO THE CITY OF CORPUS CHRISTI, CERTAIN ADDITIONAL TERRI- TORY, AND FIXING NEW BOUNDARIES FOR THE CITY OF CORPUS CHRISTI, FULLY DESCRIBING SAID TERRITORY AND SAID NEW BOUNDARIES, AND DECLARING SAID NEW TERRITORY AN INTEGRAL PART OF THE CITY OF CORPUS CHRISTI, AND DECLARING THE SAID NEW TERRITORY AS ANNEXED TO AND MADE PART OF THE CITY OF CORPUS CHRISTI, TEXAS, SUBJECT TO THE GENERAL LAWS OF THE STATE OF TEXAS, THE CITY CHARTER OF THE SAID CITY AND THE ORDINANCES, RESOLU- TIONS AND LAWS OF THE CITY OF CORPUS CHRISTI AND ENTITLED TO ALL THE SAME RIGHTS, PRIVILEGES AND BURDENS THEREOF; AND DECLARING AN EMERGENCY . The Charter Rule was suspended and the foregoing ordinance was passed by the following vote: Sizemore, Bonniwell, Bosquez, Branch, Gonzales, Lozano, and Stark, present and voting "Aye". ORDINANCE NO. 11202 CLOSING AND ABANDONING TO ORTHMED BUILDING CORPORATION THE EASE- ;OENTS ALONG THE SOUTH LINE OF LOT 1 AND THE WEST LINE OF LOT 1 AND THE WEST LINE OF LOT 3, UNIT I, WASHBURN MEADOWS ADDITION; PROVIDING THAT ALTERNATE EASEMENTS BE DEDICATED; PROVIDING THAT THE ABANDON- MENT BE SUBJECT TO THE RELOCATION OF ALL UTILITY LINES LOCATED IN THE PORTIONS TO BE ABANDONED AT THE APPLICANT' S EXPENSE; PROVIDING FOR • Minutes Regular Council Meeting December 13, 1972 Page 11 SEVERANCE; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance was passed by the following vote: Sizemore, Bonniwell, Bosquez, Branch, Gonzales, Lozano, and Stark, present and voting "Aye". ORDINANCE NO. 11203 AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE ESTATES OF JUAN A. GONZALEZ AND ISABEL M. GONZALEZ, WHEREBY THE CITY OF CORPUS CHRISTI IS AUTHORIZED TO TAKE POSSESSION OF A PORTION OF LOT NINE (9), SECTION E, PAISLEY'S SUBDIVISION OF THE HOFFMAN TRACT, FOR THE CONSTRUCTION OF THE IMPROVEMENTS TO GREENWOOD DRIVE, A COPY OF WHICH AGREEMENT IS MARKED EXHIBIT "A", ATTACHED HERETO AND MADE A PART HEREOF FOR ALL PURPOSES; AND DECLARING AN EMERGENCY. The Charter Ryle was suspended and the foregoing ordinance was passed by the following vote; Sizemore, Bonniwell, Bosquez, Branch, Gonzales, Lozano, and Stark, present and voting "Aye". ORDINANCE NO. 11204 AMENDING THE ZONING ORDINANCE OF THE CITY OF CORPUS CHRISTI ADOPTED ON THE 27TH DAY OF AUGUST, 1937, APPEARING OF RECORD IN VOLUME 9, PAGES 565, ET SEQ, OF THE ORDINANCE AND RESOLUTION RECORDS, AS AMENDED FROM TIME TO TIME AND PARTICULARLY AS AMENDED BY ORDINANCE NO. 6106, AS AMENDED, UPON APPLICATION OF THE PLANNING COMMISSION OF THE CITY OF CORPUS CHRISTI BY AMENDING THE ZONING MAP BY CHANGING THE ZONING ON THE EAST ONE-HALF OF LOTS 6 AND 7, BLOCK 1, PORTMOQR ADDITION, SITUATED IN THE CITY OF CORPUS CHRISTI, NUECES COUNTY, TEXAS, FROM "A-2" APARTMENT HOUSE DISTRICT TO "1-2" LIGHT INDUSTRIAL DISTRICT; KEEPING IN EFFECT ALL OTHER PROVISIONS OF THE EXISTING ORDINANCE AS AMENDED; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND DECLAR- ING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance was passed by the following vote: Sizemore, Bonniwell, Bosquez, Branch, Gonzales, Lozano, and Stark, present and voting "Aye". Mayor Sizemore called for petitions from the audience on matters not sche- duled on the Agenda. Mrs. Jean Harlin, 2006 Woodcrest, requested that the Council take some action to develop Don Patricio Subdivision. She stated the animal ordinonwe is being violated and should be amended for better control; that dogs and livestock are running loose; junk and debris are scattered throughout the area; and noise and other nuisances are prevalent. She also complained that tax money had not been spent in this area • Minutes Regular Council Meeting December 13, 1972 Page 12 for improvements such as streets, water and sewer lines. Mrs. Harlin was informed of the large amount of 1970 Bond Fund money which had been in this area. Mayor Sizemore explained that some one and one-half million hod been spent for sewer lines but that these were mostly underground and not all visible improve- ments, and that more money had been spent in this area than had been collected in takes. She was also advised to solicit the cooperation of her neighbors and submit petitions to participate on a cooperative assessment basis for street and drainage improvements. Mayor Sizemore announced the public hearing on Zoning Application #927-10, David and Carolyn Thomas, for change of zoning from "R -1B" One -family Dwelling District to "B-1" Neighborhood Business District, on Lot 1, Block 6, Arcadia Subdivision, located at 1102 York Street. City Manager Townsend pointed out the location of the property on the map. He explained that the request was heard by the Planning Commission September 19, 1972, and forwarded to the Council with the recommendation that it be denied but in lieu thereof a special permit be granted according to the site plan submitted with the follow- ing limitations: (1) that the owner be limited to selling only those wares that he and his wife produce; and (2) that the special permit be limited to the present owner and in the event this property is sold, the special permit shall not be conveyed to the buyer. He stated it was the Staff's opinion that this is spot zoning and that approving the request would break down the residential character of the area and create additional traffic congestion in an already congested area due to the Del Mar College traffic. Mr. David Thomas, applicant, was present and stated the special permit as recommended by the Planning Commission was satisfactory. Mrs. Wallis Benedict, 1150 Florida, appeared representing a group of residents in this area, in opposition, stating they are very interested in keeping this a residential district and do not want any type of business use established. She pointed out that traffic is already very congested because of Del Mar College. She stated it would only be opening the door to other business uses; that there would be no way to enforce the restrictions imposed by the Special Permit, and when the property is sold there are many ways around the restrictions. She also stated it was her information that • • Minutes Regular Council Meeting December 13, 1972 Page 13 the property could be loosed for an Indefinite time and still operate under the Special Permit. Mrs, Benedict was advised that the zoning ordinance provides that when property operating under a Special Use permit is sold or changes hands, the zoning auto- matically reverts to its original status. Gathers appearing and speaking in opposition were Mrs. Wayles Price, 1113 Logan; Mrs, Bill Christian, 1190 Florida; and Mrs, Christine Ragland, 1157 Florida. Mrs. Christian stated there would be added problems if Carter Street is closed, Mr, Thames, applicant, stated his home is also in this area and it was not his intention to change the character of the neighborhood from residential to business. He stated he and his wife only intend to sell items which they make. Pictures of these items were presented to the Council, Motion by Stark, seconded by Branch and passed, that the hearing be closed, Motion by Bosquez, seconded by Bonniwell, that the request be denied. Bonnlwell and Bosquez voted "Aye', Gonzales abstained, and Branch, Lozano, and Stark voted "Nay", The motion failed. Motion by Stark, seconded by Branch, that the recommendation of the Planning Commission be concurred in and that a Special Permit bo granted. Stark, Lozano, and Branch voted ''Aye"; Sizemore, Bonniwell and Bosquez, voted "Nay"; Q,,onzales abstained, City Attorney Riggs declared the zoning on Application #972-10, David and Carolyn Thomas, had been denied, Mayor Sizemore announced the public hearing on a proposed Text Amend- ment - Article 7A "T-1" Travel Trailer Park, Mobile Home Park, and Mobile Home Subdivision Regulations, The foregoing public hegringfreeessed and rescheduled for January 17, 1973, qt 4:00 p.m. due tq lack of time because of the public hearing at 7;00 p.m. an the request of Central Power & Light Company's request for a rate increase. Mayor Sizemore reconvened the meeting following a brief recess at 7:Q0 p,m, Motion by Branch, seconded by Stark and passed, that the public hearing on the CPL request for rate lncroase be held at Exposition Hall because of lack of space in City Hall to accommodate an overflow crowd. • Minutes Regular Council Meeting December 13, 1972 Page 14 Mayor Sizemore reconvened the meeting in Exposition Hall at 7:30 p.m. for the purpose of holding a public hearing on the request of Central Power and Light Company for a general rate increase. He asked that it be noted that all members of the Council and the required Charter Officers were present. Also he noted that there were some 100 persons present in the audience for the hearing. City Manager Townsend explained the purpose of the hearing, the factors involved in rate regulations, and the ground rules of procedure for the hearing. He stated that Central Power & Light Company representatives would first be asked to present their reasons for a rate increase, followed by questions from the City Council and Staff, and that persons in the audience or those in opposition would then be permitted to questionthe presentation of CPL. Mr. Townsend read from Article 8, Section 7, of the City Charter, entitled "Regulation of Rates", which sets out the guidelines for the hearing, He explained that under the provisions of the Charter, the Council has full power to regulate by ordinance the rates of every public utility and explained that the franchise holder requesting an increase in its rates has the burden of presenting convincing evidence establishing the value of its property and the amount and character of its expenses and revenues and is the Council's responsibility to decide what kind of percentage of return the company needs to have an adequate return on their investment to attract new capitol and that a computation of cost versus net income is the basic issue of this hearing. He stated it is anticipated that the City will employ a qualified outside consultant in this regard to analyze the proposed rate increase request and to assist the Council in a review of information and data. He explained that the City Charter also provides that the ordinance shall be on a three reading basis and that the Council would be allowed reason- able time for review of the information presented by CPL and testimony presented at this hearing. Mayor Sizemore stated he had received a number of letters and telegrams both for and against the rate increase request and that these will all be filed and entered into the record as a part of this hearing. Representatives of Central Power & Light Company present and participating in the presentation were: Mr. S. E. Kelley, District Manager; Mr. Sydney B. Denton, District Administration Service; H. K, Howard, General Counsel; Wallace Whitworth, • Minutes Regular Council Meeting December 13, 1972 Page 15 Local Manager; Mr. W. G. Steiner, Administrative Assistant; Mr. Frank Lane, Controller; Mr. Charles Thrash and Mr. William Brown of Baker -Botts Law Firm of Houston. Mr. Kelly, District Manager, presented the case of the CPL Company. He addressed himself to four major items: (1) the obligation of Central Power and Light Company to provide adequate and reliable electric service to all of its customers; (2) the Company's responsibility as a corporate citizen; (3) the importance of efficiency in the Company's opera- tions; and (4) the immediate need for an overall rate increase of approximately six percent. He stated that during CPL's 56 year history, they had never asked for a general rate increase, but on the contrary, had voluntarily reduced the rates more than twenty times. He stated that the Company's rate of return is continuing to decline and that if an increase is not granted, that rate will dip to 5.38 percent during 1973; that with the increase, the rate would amount to 5.95 percent, and that by projecting the increase for a full year, the rate of return, with the increase, would amount to 6.28 percent. He cited increasing costs for financing, construction, environmental protection and general operation to support the request. Mr. Kelly exhibited charts and graphs showing the following: Ratio of Cus- tomers to Employees; Fuel Efficiency, an improvement of 10 percent over the past 10 year; Electric Labor Costs, an increase by 62 percent in the past eight years; Distribution Line Costs, an increase of 122 percent since 1963; Transmission Line Costs, an increase of 47 percent since 1962; Construction Efficiency, showing that in 1955 a generating unit had cost $120 per kilowatt of installed capacity, and in 1963, a much larger unit was built for a cost of $82 per kilowatt, and the plant now under construction will be $148 per kilowatt, all of which is expected to continue rising; CPL System Load Factor, increased to 62 per- cent level since 1958, which has been a large factor in ability to hold down price of electricity; Consumer Price Index, showing a need for the six percent increase because of inflation, which climbed to about six percent starting in the late 1960's, and the cost of living which has increased approximately 60 percent since 1951; Utility Steam Plant Cost Index, showing that the cost for building electric utility plant systems have doubled since 1951; Load and Capacity, indicating that the anticipated needs for electricity in the years ahead will have to be expanded on an unprecedented scale, and to do that, they • Minutes Regular Council Meeting December 13, 1972 Page 16 will have to rake investment capital on an unprecedented scale; figures show that load has doubled since 1965 and is expected to almost double again by 1980; Construction Expendi- tures, over a ten year period accumulate to one billion in 300 million; Investment per KW, and Corpus Christi Revenues from CPL, the next 9 years, this investment per KW will rise almost 30 percent; Total Operating Expenses projected to 1975, including depreciation and taxes, CPL has been Corpus Christi's largest taxpayer, and the taxes have been going up at a rate of about 15 percent annually; Company -wide Payments to Taxing Agencies - have increased by approximately 13 percent annually; External Financing - coverage has dropped from 5.45 times in 1968 to 3.75 times at the end of September, 1972, and re -financing of bonds and debentures as they mature is another basic problem, the major change being the cost of re -financing at a higher interest rate, which, as an example, their current Series A Bonds at 3-1/8% cost $715,000 annually in interest costs and will almost double to $1,715,000; Fixed Charges Coverage - showing return on Gross Plant has dropped from 6.25 to 5.95 percent. Mr, Kelly filed for the record copies of the foregoing charts and graphs, including a copy of the Company's Rate of Return on Fair Value Rate Base, Return of Equity, and Increase in Net Income and Gross Plant. Following Mr. Kelly's presentation, the Council questioned as to why the rates for Corpus Christi appear to be higher than for rural areas; how the increase in Corpus Christi compares with other cities; and in what categories the largest number of residential consumers are included. Mr. David Perry, attorney representing the Consumer's Association, presented organized opposition and filed with the Council some exhibits, relative to the following: Common Stock Equity of all privately owned electric utilities in the United States; Rate of return on common stock equity of CPL as compared with comparable privately owned elec- tric utilities in the United States; Excerpts from Federal Power Commission Opinion Re Union Electric Company. Mr. Perry questioned and cross-examined Mr. Kelly's presentation. He stated Central Power & Light Company is not in "dire straits". He stated that even without an increase in rates, the Company's net operating income will grow to $43 million by 1976 • • Minutes Regular Council Meeting December 13, 1972 Page 17 and to $48 million with the increase. He stated that evidence based on calculations made by the Federal Power Commission indicates that The Company is not entitled to a rate increase in Corpus Christi, but that a reduction of $5 to $7 million would be more reasonable. Mr. Perry disputed the rate of return figures, stating that CPL's earnings and return are among the highest of any utility in the United States. He questioned CPL officials about return on common stock equity and presented a report prepared by their firm showing a return on common stock equity of between 16.3 percent and 18 percent during the four-year period between 1967-1970. He questioned CPL'S figures on fair value rate base which was about $522 million for September 30, 1972, and $596 million projected for SepArrn6er 30, 1973; questioned the inclusion of con- struction work in progress and other items added into the rate base total, stating that in contrast to figures cited by CPL, figures calculated by the Federal Power Commission show that during 1969 CPL had a rate of return on plant investment of 9.72 percent and in 1970 a return of 9.29 percent. Mr. Perry stated the FPC would consider that this is more than rea- sonable. He also read an analysis prepared by himself and the firm of R. W. Beck & Associates, utility rate consultants, stating this analysis disagreed with CPL method of computing the fair value of its plant and concluded that no increase is warranted in Corpus Christi. Mr. Perry was accompanied by members of his law firm and Mr. Harry Uilom, an economics professor at Del Mar College. Mr. Frank Lane, Controller for CPL, stated the FPC report clearly states its figures are not to be used for rate -making purposes and that rates of returns will vary from company to company and with various jurisdictions which regulate rates. He stated that in Texas, the "fair value" method is used. Mr. William Brown, CPL attorney, distributed a paper on the misuse of FPC figures. He stated he was surprised that Mr. Perry would use the FPC as a source, since their method of regulation of the gas industry has been disastrous, He quoted from a 1923 U. S. Supreme Court ruling which stated that a utility can earn an amount generally made by other companies in its general area, and the return of CPL in 1970 was lower than other intrastate companies; that a rote of return alone does not give o true picture of the economic health of a company and cited several instances of utilities which had good rates of return but which had trouble selling bonds for new capital. He stated that Central Power & Light is a healthy company but must have additional revenues to continue providing service as • Minutes Regular Council Meeting December 13, 1972 Page 18 as needed to their customers. Mr. Bill Darby, 626 John Lee, spoke against the request of CPL for a rate increase. Mr. Jack Moore, 6118 Boca Raton Drive, spoke in favor of the request. The Council agreed to recess the public hearing on the request of CPL for a rate increase until 5:00 p.m., December 20, 1972, Regular Meeting, There being no further business to come before the Council, the Regular Meeting was adjourned at4:30 p.m., December 13, 1972.