HomeMy WebLinkAboutMinutes City Council - 12/20/1972• .
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
REGULAR COUNCIL MEETING
December 20, 1972
3:00 P. M.
PRESENT:
Mayor Pro Tem Chas. A, Bonniwell
Commissioners;
Roberto Bosquez, M.D. City Manager R. Marvin Townsend
Rev. Harold T. Branch City Attorney James R. Riggs
Thomas V. Gonzales Assistant City Secretary Bill G. Read
Gabe Lozano, Sr.
J. Howard Stark
Mayor Pro Tem Chas. A. Bonniwell called the meeting to order in the Council
Chamber of the City Hall. He led the audience in a moment of silent prayer as an
expression of regret for the untimely death of Mr. James C. Watson.
The Invocation was given by Dr. Arthur Steinberg, Rabbi of Temple Beth El
Synagogue.
Assistant City Secretary Bill G. Read called the roll of those in attendance.
Motion by Branch, seconded by Gonzales and passed, that the absence of Mayor
Sizemore be excused for just cause.
The Minutes of the Regular Council Meeting of December 6, 1972, were approved
as presented to the Council.
Mayor Pro Tem Bonniwell announced the formal acceptance of a replica of
the Ship's Bell from the USNS Corpus Christi Bay. He explained that the bell was
presented by the Captain and crew at a noon luncheon, and that he, on behalf of the
Council, had delivered to the representatives a plaque welcoming the Corpus Christi
Bay home to Corpus Christi.
Mayor Pro Tem Bonniwell recognized and presented Certificates of Attendance
to 17 Boy Scouts of St. Patricks Boy Scout Troop No. 162. Their sponsor Mrs.
Richardson accompanied the Scouts.
Mr. Syschuk Anatoly and Mr. Adamchuk Anatoly, visiting Russian sailors on
the Russian Vessel Fizik Lebedev docked in Port of Corpus Christi, were credited with
saving the life of a 22 -month-old boy on December 17, and along with the Ship's
Captain and members of the crew, were presented with Certificates of Commendation
and made 'Honorary Citizens.
Mayor Pro Tem Bonniwell announced the public hearing on the request of
Mr. Cesario Curiel to close the alley located between Lots 1, 33, 34, 36 and 38,
of Block 3, Austin No. 1 Addition.
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Regular Council Meeting
December 20, 1972
Page 2
City Manager Townsend pointed out the location on the map. He stated that
the request had been routinely circulated through the affected City Departments and
no opposition had been received. He explained that there: are both water and sewer
lines in the alley, and if closed, easements for these lines should be retained. He
explained that written opposition had been received from Mr. J. H. Barroso, 3836
Morgan Street, stating the closing would block the entrance for his furniture busi-
ness, and also block emergency equipment such as ambulances and fire equipment. Mr.
Townsend stated two letters had been received in favor of the closing, from Mr. and
Mrs. Eliseo Guerrero, Jr., 3913 MacArthur, and Mr. F. R. Chapa, 566 Balboa Street.
He stated it is the recommendation of the Staff that the alley be closed subject to
the retention of the existing utility easement, and that this would be an appro-
priate time because of the paving program in this area.
Mr. Cesario Curiel, applicant, stated the alley had never been opened or used
and that children walk through and play in the alley. He stated he has no plans to
build in the area if closed.
Mr. Cavazos, owner of Lots 36, 37 and 38, stated he operates a night club
on one of these lots, and was in favor of the closing.
Mr. Reyes Rodriguez, 4501 Mokry, Mr. J. H. Barroso, 3836 Morgan, spoke in
opposition, stating the closing would block entrance to their property.
City Manager Townsend stated it was his recommendation that the request be
tabled until the problems of the use of the alley are resolved.
Motion by Branch, seconded by Bosquez and passed, that the hearing be
closed.
Motion by Gonzales, seconded by Branch and passed, that the request to close
Lots 1, 33, 34, 36 and 38, Block 3, Austin, No. 7 Addition, be tabled for further
consideration on January 3, 1973.
City Manager Townsend presented the request of Mr. H. Durwood Thompson, Jr.,
to close an extension of Weber Street abutting Hopper Addition No. 2, Lot 6, Block 6.
He gave a complete history of the triangle which he stated was a portion of a street
right of way containing some 3969 square feet; that only the 38 -foot portion of
Weber Parkway was dedicated by the developer and the remainder is a portion of the
property that was purchased by the City from the developer. He explained original
plans to connect Bremner Parkway and Weber which plans were abandoned later and the
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Regular Council Meeting
December 20, 1972
Page 3
land was declared surplus. He stated some of it was sold to the Bayshore Bible
Church. He explained that 30 feet is a dedicated street, and that 19 feet will
revert to the City's triangle and the other portion to the applicant; that it is. the
Staff's recommendation that it be closed, but that the value, plus one-half the
street be charged to the applicant.
Mr. Durwood Thompson, Jr., applicant, spoke in support of the request,
pointing out that the tract of land is in two different ownerships; that he is
interested in buying the surplus area from the City because his adjacent lot is
too small, and that according to the recommendation of the City Manager, it is his
understanding that he would own approximately one-third of the triangle, and the
City's portion would be approximately 1,000 square feet. He stated he is agree-
able to the recommendation of the City Manager, and that he only intends to use the
area as a side yard.
Mr. John Foley, 1001 Herndon, owner of property in the area, stated he was
not opposed to the request providing the zoning does not change.
Motion by Branch, seconded by Bosquez and passed, that the hearing be
closed.
Motion by Stark, seconded by Bosquez and passed, that the extension of
Weber Parkway beginning at the north boundary line of Herndon Street and extending
in a northward direction to the Bay Shore Bible Church Property, be closed, subject
to retention of the existing utility easements, and that the portion which will
revert to the City, be sold to Mr. Thompson on a. negotiated basis, and that an
ordinance be brought forward effectuating the closing.
Mayor Pro Tem Bonniwell requested that pending items which were not
carried forward for specific dates, be listed on next week's Workshop Agenda. He
asked that the item of acquisition of Parcel No. 49 for the Oso Sewage Treatment
Plant buffer zone from Mrs. Smith and Mrs. Baker, also be included. He requested
that the attorney, Mr. Curtis Dyer be contacted and that a meeting be arranged for
Tuesday for discussions on this subject.
Mr. Bonniwell requested that the Zero Base Budget be listed on the January.3
Workshop Agenda for a report on this subject; and that appointments to Boards and
Committees be scheduled for the January 3, meeting.
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Regular Council, Meeting
December 20, 1972
Page 4
Mayor Pro Tem Bonniwell called for the City Manager's Reports.
City Manager Townsend made the following requests and recommendations:
a. That a public hearing be held on January 24, 1973 at 4:00 p.m., on
the following zoning applications:
(1) Spohn Hospital - "A-1" to "13-1", located on the east side of
the 1300 Block of Second Street between Elizabeth Street and
Morgan Avenue.
(2) William J. Lucas, Jr. - "R -1B" to "A-1", located south of Don
Patricio Road and West of Sentinel Street.
(3) City Planning Commission - "A-2" to "AB", located on the east
side of the 3000 Block of South Alameda Street.
(4) City Planning Commission - "R-2" to "AB", located on the east
side of the 3200 Block of South Alameda Street.
(5) City Planning Commission - "R-2" to "R -1B" and "AB", located
on the east side of the 3300, 3400 & 3500 Blocks of South
Alameda Street.
(6) City Planning Commission - "R-2" to "R -1B", located east of the
4700 & 4800 Blocks of Weber Road, including all properties in
Lincoln and Terrace Circles.
(7) City Planning Commission - "A-1" to "R -1B", located south of
Lawrence Drive, including Ligustrum, Gardenia & Azalea Drives,
and a portion of Mimosa Street.
(8) City Planing Commission - Tract A - "B -1A" to "B-1"; Tract B -
"R-2" and "A-1" to "R -1B", located south of Mueller Street,
east of Erwin Avenue and northwest of Leopard Street.
(9) City Planning Commission - "8-4" to "R -1B" and "A-1", located
on the northwest corner of Everhart Road and Saratoga Boulevard.
b. Recommendation that a public hearing be set for January 10, 1973 at
5 p.m., for the 1972-73 expenditures of Revenue Sharing Funds.
c. Recommendation. that contracts be awarded to the following firms for
various items of office furniture on the basis of low bid: (Bid Tabulation X668-73)
Maverick -Clarke Company, Corpus Christi -
Lot 1 (17 Desks, 4 Tables) $2,743.60
Lot II (33 File Cabinets, 13 Bookcases) 3,222.73
John H. Yochem Co., Corpus Christi -
Lot III (121 Chairs) 1,291.64
Total $7,257.97
d. That the contract for the replacement of the broken curbs along
North and South Shoreline be awarded to R. S. Black for $8,890.00, and that an
appropriation of $10,000 to cover the contract award, engineering and related costs,
be approved.
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Regular Council Meeting
December 20, 1972
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e, That Change Order No. 6 for $5,100.00 be authorized to the contract with
Loyd W. Richardson Construction Corporation for Improvements for Corpus Christi
Marina, Pier & Piling Work and that $3,387.17 be appropriated to supplement $1,712.83
in existing appropriations. The Change Order provides for the construction and
installation of 68 gear boxes at $75 each; the gear boxes were originally deleted
from the contract because the contract for building improvements had not been
awarded and it was possible there might be insufficient money; funds are now avail-
able and the price is reasonable making it advantageous for the City to proceed with
the construction. The boxes will be somewhat smaller than existing boxes and will
be fastened to the deck of the new slips. Tenants will be charged $2.00 per month
rent for use of the boxes.
f. That a contract with Richard Hinojosa for operation of the City Car
Pound on Massey Street adjacent to the Police Building, be authorized. The Pound
will be for those cars which have been illegally parked, stolen, or must be removed
from public streets due to an emergency such as cars stalled on an expressway. If
the car is not claimed within seven days, it will be removed to the Abandoned Car
Pound. The Pound will be open and staffed on a 24-hour, 7 -day a week bass; cost
of the contract will be $14,600 annually to be paid in monthly installments, and
in addition, the contractor will collect $10.00 towing fee and $1.00 per day stor-
age fee on each vehicle.
g. That 1972 versions of the Southern Standard Plumbing Code and Southern
standard Gas Code be adopted as the City Plumbing Code, end that 16 local amend-
ments be made to the model codes standards (in lieu of 75 local standards previously
imposed). The updated versions will replace the 1968 Model Plumbing Code and the
1965 Model Gas Code. The most significant change is that the 1972 model Code
permits the use of plastic pipe for drain, waste, and vent systems in buildings up
to 60 feet in height; this use was previously restricted to one and two family
dwellings.
h. That the 1970 Edition of the Fire Prevention Code, recommended by the
American Insurance Association, be adopted. The 1965 Edition is now in effect, and
the changes compensate for improvements in process and technology.
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Regular Council Meeting
December 20, 1972
Page 6
i. That a contract be awarded to General Electric Company c/o Communica-
tions Engineering, Corpus Christi, Texas, for the City's 1972-73 requirements of
radio equipment for $21,888.00, the radio equipment to be purchased under the
Coastal Bend Council of Governments contract with General. Electric; fifteen units
are replacements and 22 are additional units for improved communications for the
following operations: (Bid Tabulation #69-72)
Maintenance Services (Garages) - 12 Units
Fire Department - 1 Unit
Engineering Services - 1 Unit
Animal Control - 1 Unit
Water Division - 3 Units
Wastewater Services - 1 Unit
Vector Control - 1 Unit
Police 2 Units
j. That acquisition of Parcels 2 and 3 of the Gollihar Road Project be
approved from Mr. & Mrs. Guy D. Winstead for $1,000 and the obligation of the City
to file a plat for the remainder with the Planning Commission and submit a various to
the Board of Adjustment so that a building permit may be issued for a residence on a
lot less than 50' wide. If the Planning Commission and the Board of Adjustment do
not concur, the purchase contract will be void, and no appropriation is required
since money has been previously appropriated.
k. That plans and specifications for the furnishing of the archives (storage)
room of the Corpus Christi Museum be approved and bids be received January 10, 1973,
said plans including the partitioning of the room, the addition of a vinyl floor,
electrical work, mechanical work, air conditioning ducts, dropping of the ceiling
as well as the necessary hardware.
1.. That the public hearing on Ayers Street Improvements from Norton to
Port Avenue, be closed and that the assessment roll be adopted with the following
changes: (1) No assessments to Items 10B through 38, s'^.c.: the lots hack up to
Ayers Street and are separated by a 15 -foot park strip; (2) reduction of the assess-
ment on Item 42C from $2,142.38 to $1,276.42, because of the unusual shape of the
Port -Ayers corner, and (3) no assessment for Items 57 through 62. because the lots
back up to Horne Road.
m. That the public hearing scheduled for December 20, L972, on the closing
of the 20 -foot alley east of Lots A-1, B-2, and C-2, along the northwest side of
Lot A-2, Habluetzel Subdivision, be re -set for December 27, 1972.
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Regular Council Meeting
December 20, 1972
Page 7
Mr. Clifford Cosgrove, 3302 Olsen, appeared relative to Item "g" for
adoption of the Southern Standard Plumbing Code and Southern Standard Gas Code. He
stated he is a licensed plumber and. opposed the adoption as presented by the City
Manager. He stated the proposed Code will permit the use of plastic pipe which is
not durable and will not stand the pressure of heat and certain chemicals. He stated
the only acceptable pipe for slab foundations and drains is copper or cast iron. He
stated the City had relied on the recommendation of persons promoting the sale of
plastics, and that persons who had had experience in the plumbing business should
have been, consulted.
City Manager Townsend stated the proposed Code had been reviewed by the
Master Plumbers Association and City Plumbing Advisory Board. He stated the
ordinance is on a 3 -reading basis.
Mayor Pro Tem Bonniwell requested that an official meeting of the Plumbing
Advisory Board be called and that a written report of the action taken be submitted
to the Council.
Motion by Lozano, seconded by Branch and passed, that the City Manager's
Reports, Items "a" through "m", be accepted, and that the requests and recommenda-
tions be granted and approved as presented.
The Regular Meeting was recessed,during which timethe Council Held a public
hearing scheduled for 4:00 p.m. on eight zoning cases.
The Meeting was reconvened at 5:00 p.m., and City Manager Townsend presented
the following Ordinances.
ORDINANCE NO. 11205
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 third time and passed finally by
the following vote: Bonniwell, Bosquez, Branch, Gonzales, Lozano and Stark, present
and voting "Aye"; Sizemore absent.
ORDINANCE NO. 11206
THIRD READING OF AN ORDINANCE AMENDING THE CORPUS CHRISTI CITY CODE, 1958, AS
AMENDED, AND PARTICULARLY AMENDING SECTION 21-156, "STOPPING, STANDING OR PARK-
ING PROHIBITED DURING CERTAIN HOURS ON CERTAIN STREETS", BY ADDING THERETO AN
ITEM WHICH WILL HAVE THE EFFECT OF PROHIBITING STOPPING, STANDING OR PARKING
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Regular Council Meeting
December 20, 1972
Page 8
DURING CERTAIN HOURS ON THE SOUTH SIDE OF BUFFALO STREET, BETWEEN ARTESIAN AND
CARRIZO STREET; PROVIDING FOR PUBLICATION; AND PROVIDING FOR SEVERABILITY.
The foregoing ordinance was read for the third time and passed finally by
the following vote: Bonniwell, Bosquez, Branch, Gonzales, Lozano and Stark, present
and voting "Aye"; Sizemore absent.
ORDINANCE N0,11207
AMENDING THE CORPUS CHRISTI CITY CODE, 1958, AS AMENDED, BY AMENDING SECTION
21-153, SCHEDULE 1, "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
DIRECTION ONLY ON CLIFFORD STREET, FROM A POINT 290 FEET EAST OF ATAMEDA STREET
TO SANTA FE STREET; PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR PUBLICATION.
The foregoing ordinance was read for the third time and passed finally by
the following vote: Bonniwell, Bosquez, Branch, Gonzales, Lozano and Stark,
present and voting "Aye"; Sizemore absent.
ORDINANCE NO. 11208
AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH R. S. BLACK FOR THE CONSTRUC-
TION OF CURBS ALONG NORTH AND SOUTH SHORELINE BLVD; APPROPRIATING OUT OF THE 220
STREET BOND FUND $10,000, OF WHICH $8,890 IS FOR THE CONTRACT AND $1,110 IS FOR
CONTINGENCIES, TESTING AND LABORATORY WORK IN CONNECTION WITH THE PROJECT; ALL APPLI-
CABLE TO PROJECT 220-70-135: AND DECLARING AN EMERGENCY.
The Charter Rule was suspended and the foregoing ordinance was passed by
the following vote: Bonniwell, Bosquez, Branch, Gonzales, Lozano and Stark,
present and voting "Aye"; Sizemore absent.
ORDINANCE NO. 11209
AUTHORIZING THE EXECUTION OF CHANGE ORDER NO. 6, IN THE AMOUNT OF $5,100, TO THE
CONTRACT WITH LOYD W. RICHARDSON CONSTRUCTION CORPORATION FOR THE CONSTRUCTION OF
IMPROVEMENTS FOR THE CORPUS CHRISTI MARINA, PIER & PILING WORK, PROJECT NO. 292-70-1;
APPROPRIATING OUT OF THE NO. 292 MARINA BOND FUND $3,387.17 TO SUPPLEMENT $1,000 IN
BETTERMENT FUNDS AND $712.83 IN CONTINGENCY FUNDS PREVIOUSLY APPROPRIATED BY
ORDINANCE NO. 10,818; AND DECLARING AN EMERGENCY.
The Charter Rule was suspendedand the foregoing ordinance was passed by
the following vote: Bonniwell, Bosquez, Branch, Gonzales, Lozano and Stark,
present and voting "Aye"; Sizemore absent.
FIRST READING OF AN ORDINANCE ADOPTING THE SOUTHERN STANDARD PLUMBING CODE, 1971
EDITION AND THE 1972 REVISION THERETO, AND THE SOUTHERN STANDARD GAS CODE, 1969
EDITION AND THE 1972 REVISION THERETO, FOR THE REGULATION OF THE INSTALLATION,
ALTERATIONS, REPAIRS, REPLACEMENT, EQUIPMENT (INCLUDING APPLIANCES), FIXTURES,
FITTINGS AND/OR APPURTENANCES THERETO OF PLUMBING AND GAS PIPE AND APPLIANCE
FITTINGS, BOTH EXISTING AND NEW, AND ALL PARTS THEREOF, INCLUDING EVERY CONNEC-
TION TO THE WATER OR SEWERAGE SYSTEM OF THE CITY, AND EVERY CONNECTION TO A GAS
SUPPLY SYSTEM, WITH CERTAIN CHANGES THEREIN AND ADDITIONS THERETO; PROVIDING FOR
ADMINISTRATION AND ENFORCEMENT; MAKING VIOLATIONS A MISDEMEANOR PUNISHABLE BY FINE
NOT EXCEEDING $200; PROVIDING FOR PUBLICATION BY NOTICE; PROVIDING A SAVINGS CLAUSE;
AND REPEALING ORDINANCES 9057 AND 9624.
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Regular Council Meeting
December 20, 1972
Page 9
The foregoing ordinance was read for the first time and passed to its
second reading by the following vote: Bonniwell, Bosquez, Branch, Gonzales, Lozano
and Stark, present and voting "Aye"; Sizemore absent.
FIRST READING OF AN ORDINANCE ADOPTING THE FIRE PREVENTION CODE, 1970 EDITION,
PRESCRIBING REGULATIONS GOVERNING CONDITIONS HAZARDOUS TO LIFE AND PROPERTY FROM
FIRE OR EXPLOSION, A COPY OF WHICH, AUTHENTICATED BY THE SIGNATURES OF THE MAYOR
AND CITY SECRETARY, AND MADE A PUBLIC RECORD BY THIS ORDINANCE OF THE CITY COUNCIL,
IS ON FILE IN THE CITY SECRETARY'S OFFICE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING
FOR PUBLICATION.
The foregoing ordinance was read for the first time and passed to its
second reading by the following vote: Bonniwell, Bosquez, Branch, Gonzales,
Lozano and Stark, present and voting "Aye"; Sizemore absent.
FIRST READING OF AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER TO ENTER
INTO A CONTRACT FOR OPERATION OF THE IN -AND -OUT CITY VEHICLE POUND WITH RICHARD
HINOJOSA IN ACCORDANCE WITH THE CONTRACT.
The foregoing ordinance was read for the first time and passed to its
second reading by the following vote: Bonniwell, Bosquez, Branch, Gonzales,
Lozano and Stark, present and voting "Aye"; Sizemore absent.
ORDINANCE N0. 11210
CLOSING THE HEARING ON STREET IMPROVEMENTS FOR THE FOLLOWING STREETS:
1. Ayers Street from a point approximately 3600 L.F. south of
the center line of Alexander Street northward to the north
right-of-way line of Norton Street
2, East side of South Port Avenue from the north right-of-way
line of Port Ayers Subdivision Center Annex B to its intersection
with the west side of Ayers Street
AND FINDING AND DETERMING THAT PROPERTY ABUTTING SAID STREETS WILL BE SPECIFICALLY
BENEFITED AND ENHANCED IN VALUE IN EXCESS OF COST OF THE IMPROVEMENTS AND LEVYING
AN ASSESSMENT; FIXING A LIEN AND CHARGE, THE MANNER AND TIME OF PAYMENT AND COLLEC-
TION; AND DECLARING AN EMERGENCY.
The Charter rule was suspended and the foregoing ordinance was passed by
the following vote: Bonniwell, Bosquez, Branch, Gonzales, Lozano and Stark,
present and voting "Aye"; Sizemore absent.
ORDINANCE N0, 11211
AMENDING THE ZONING ORDINANCE OF THE CITY OF CORPUS CHRISTI ADOPTED ON THE 27TH
DAY OF AUGUST, 1937, APPEARING OF RECORD IN VOLUME 9, PAGE 565, ET SEQ, OF THE
ORDINANCE AND RESOLUTION RECORDS, AS AMENDED FROM TIME TO TIME AND PARTICULARLY
AS AMENDED BY ORDINANCE N0. 6106, AS AMENDED, UPON APPLICATION OF IRIS POWELL
GRANT, TR., BY GRANTING A SPECIAL PERMIT FOR A NURSING HOME SITUATED ON LOT 2,
SHARE 2, McKENZIE PARTITION OUT OF B. S. & F. SURVEYS 417 AND 419, SITUATED IN
THE CITY OF CORPUS CHRISTI, NUECES COUNTY, TEXAS, SUBJECT TO ALL OTHER CONDITIONS
OF "A-2" DISTRICT; KEEPING IN EFFECT ALL OTHER PROVISIONS OF THE EXISTING ORDINANCE
AS AMENDED; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND DECLARING AN
EMERGENCY.
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Regular Council Meeting
December 20, 1972
Page 10
The Charter Rule was suspended and the foregoing ordinance was passed by
the following vote: Bosquez, Bosquez, Branch, Gonzales, Lozano and Stark, present
and voting "Aye"; Sizemore absent.
ORDINANCE NO. 11212
AUTHORIZING THE CITY MANAGER TO EXECUTE A REAL ESTATE SALES CONTRACT WITH GUY D.
WINSTEAD AND WIFE, RUBY WINSTEAD FOR THE ACQUISITION OF PARCELS NOS. 2 AND 3 OF THE
GOLLIHAR ROAD PROJECT, FROM CADDO TO AIRLINE ROAD, PROJECT NO. 220-70-110; AUTHORIZ-
ING PAYMENT OF THE ACQUISITION PRICE OF $1,000 AND CLOSING COST $86.50 FROM FUNDS
PREVIOUSLY APPROPRIATED OUT OF THE NO. 220 STREET BOND FUND, BY ORDINANCE NO. 10720;
DECLARING AN EMERGENCY.
The Charter Rule was suspended and the foregoing ordinance was passed
by the following vote: Bosquez, Bosquez, Branch, Gonzales, Lozano and Stark,
present and voting "Aye"; Sizemore absent.
Mayor Pro Tem Bonniwell stated the foregoing ordinance relative to the
adoption of the Standard Plumbing Code and Southern Standard Gas Code, was passed on
first reading with the understanding that a written recommendation will be submitted
from the Plumbing Advisory Board as to their official action on the matter.
Mayor Pro Tem Bonniwell called for petitions from the audience on
matters not scheduled on the agenda.
Mr. Pedro P. Garcia, attorney representing Mr. Henry Ayala, owner of
the Custom Ambulance Company, appeared and requested that the Police Chief be
instructed to rescind his ruling against policemen working part time on emergency
vehicles. He stated that Custom Ambulance Company had six policemen licensed to
work off duty hours at the time the order was given to stop the practice. He stated
Custom Ambulance Company should be allowed to hire policemen as do a number of other
stores and organizations. He pointed out that Custom is the only remaining company
working under the contract with the City with the exception of a recent contract with
American Ambulance Company, and that in the last six or seven years, not one claim
had been filed against Custom Ambulance. He stated that competition between the
ambulance companies no longer exists since there is only one in operation. He
stated he planned to make presentations on this subject to the County Commissioners
and the Hospital District, and present a proposal which he stated would be directed
at ambulance service in Corpus Christi.
Mayor Pro Tem Charles Bonniwell advised Mr. Garcia to be present at a
hearing set for January 10, 1973, on expenditures of 1972 and 1973 Revenue Sharing
Funds, when the question of ambulance service would be discussed. City Manager
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Regular Council Meeting
December 20, 1972
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Townsend was directed to arrange a meeting with the Civil Service Commission to
discuss the ruling of the Chief of Police, Mr. Townsend stated he would give a full
report of this meeting.
Following a 15 -minute recess, Mayor Pro Tem Bonniwell reconvened the
meeting and announced the recessed public hearing on the request of Central Power &
Light Company for a general rate increase, which hearing was opened at Exposition
Hall, Wednesday, December 13, 1972.
City Manager Townsend submitted to the Council a formal statement of
Director of Finance Harold F. Zink, with his recommendation that a consultant be
employed to evaluate Central Power & Light Company's application for a rate increase,
and the Council was again recessed in order to review and evaluate the report.
City Manager Townsend made comments relative to his recommendation that
a special consultant be employed. He stated he concurred in Mr. Zick's recommenda-
tion that Dr. John K.Langum, Economic Consultant of Chicago, Illinois, be employed
as consultant to the City in the matter of the request of CPL for a rate increase.
Mr. Townsend explained the scope of the employment, which would be to prepare a
report, including exhibits, to be filed with the City no later than January 31, 1973,
and to be present in Corpus Christi for necessary consultation with the City Staff
and Council and to provide testimony on direct, cross-examination, and rebuttal as
necessary, and aid in the preparation of the rate order by the City Council. He
stated the consultant's fee would not exceed $17,500.00 with no reimbursement of
expenses and payable in installments. He made comments relative to Dr. Langum's
academic background, business experience, and summary of his appearances before
public utility rate regulatory bodies in recent years. Mr. Townsend presented other
consultant's proposals which included Touche Ross & Company and Drazen-Brubaker &
Associates, Inc., and pointed out that Touche Ross & Company's proposal excluded
written or oral testimony, and assistance with cross-examination of witnesses, etc.,
and the fee of $20,000 was based on hourly time charges and out of pocket costs
billed at cost; that Drazen-Brubaker & Associates' proposal was for an estimated
fee of $30,000 based on hourly time charges and excluding out of pocket costs.
Mr. Townsend stated that all the informaion and material which had been
made available to the Staff had been on a System --wide basis, and that the Staff
had oped from the beginning that a decision could be made based on an analysis of
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Regular Council Meeting
December 20, 1972
Page 12
that information, but felt that legally the burden would be based on a City-wide
analysis.
A lengthy discussion followed relative to whether or not the final decision
would be based solely on a City-wide analysis, and it was decided that a legal
opinion be submitted by City Attorney Riggs by January 3, on which approach must
be taken. City Manager Townsend explained that if the opinion is that Corpus
Christi must be evaluated separately, the role of Dr. Lar.gum may be expanded, or
a second expert called.
Mr. S. E. Kelly, District Manager of Central Power & Light Company, stated
if the issue of City-wide versus System wide analysis had been resolved several
months ago more progress could have been made up to this point. He pointed out
that all other cities which CPL serves would be entitled to the same information;
that the Company could and would provide separate information on the fair value
of plant investment in Corpus Christi, but that it would require six months and
would be costly, and the delay would have an adverse effect on a bond issue the
Company is planning in the near future. He pointed out that the Company had
filed for a rate increase with the City on September 6, of this year, and since
that time they had been working closely with City Manager Townsend; that he had
discussed with the Staff this morning the question of employing a rate consultant,
and that they were in agreement that Dr. Langum was qualified and was a suitable
choice. He stated the Company needs relief now and that time is of great concern;
that they do not feel they can continue to serve customers without a rate
increase, and urged the Council to approve an interim rate increase at this time
and that the consultant be employed to review the request at a later time with
an adjustment made based on his report.
City Manager Townsend stated he feels Central Power & Light Company is
entitled to some rate increase and that an interim one may be recommended while
the entire rate request is being review and that the Staff would be prepared to
recommend part of the request increase if that turns out to be the reasonable
approach.
Mr. Kelly stated they would be willing to enter into an agreement to
accept an interim increase and adjust after the consultant's report in order to
reach some kind of decision, stating that a postive decision of the Council
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Minutes
Regular Council Meeting
December 20, 1972
Page 13
would be vital to the Company's sale of bonds, the first of which is scheduled for
January 10, and the second some time in March.
Mr. David Perry, attorney representing the Consumers Association, stated
he did not feel the Company's request was justified and that they were not near
bankruptcy if the increase is not granted. He stated the Company's representative
had not presented any evidence to support his statement that they had not made
adequate return on their investment. He stated he did not agree with the City's
choice of Dr. John K. Langum as a consultant, stating that any consultant should
address himself to the question of decreasing rates. Mr. Perry filed for the
record a summary relative to the Corpus Christi Consumers' Association's position
and answer to evidence presented at the December 13, 1972 public hearing. He
stated the Company had failed in its burden of proof and should suffer a direct
verdict against their request for an increase, and that the Council should consider
a reduction in rates. He urged the Council to postpone action on the employment of
a consultant until after the Legal Department submits an opinion on whether or not
the City is legally required to base its decision on City-wide or System -wide study.
He stated it is his opinion that the Council should not be put in the position of
hiring a consultant to create a case for Central Power & Light Company which they
have not created for themselves, that the consultant should be the City's independent
consultant and the fee not to be shared by Central Power & Light Company. He pointed
out that according to the recommendation of the City Manager that Dr. Langum be
employed, on the basis of his background, he is much more inclined to favor the
public utilities than the consumer and has been identified with the utility side
of the picture. He stated the Staff should reconsi.der and find a consultant who
has testified on a neutral basis or on behalf of consumer groups, that the
Council has the burden of protecting the consumer groups, and that it is important
that a consultant be employed who is totally unbiased.
Mayor Pro Tem Bonniwell stated the consultant would be the City's employee
whether or not CPL was billed for a portion of the fee. He pointed out instances
in Dr. Langum's background where he had not favored an increase in utility rates.
Mr. Wm. H. Darby, 626 John Lee, concurred with the statement of Mr. Perry
that Dr. Langum was not a suitable selection to serve as a special rate consultant,
and requested that the Council consider a rate reduction rather than an increase.
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Minutes
Regular Council Meeting
December 20, 1972
Page 14
Each member of the Council made comments relative to the employment of
Dr. Langum, and it was generally agreed that he was about as neutral as could be
found.
City Manager Townsend stated that the consultant would be provided with
all the information which had been provided the Staff, and that if he requests
other information, he will so advise Central Power & Light Company. He stated the
Staff is prepared to give the consultant the full benefit of all information received
up to this point.
Motion by Stark, seconded by Branch and passed, that the recommendation of
the City Manager be concurred in to employ Dr. John K. Langum, Economic Consultant
Chicago, Illinois, to serve as consultant to the City of Corpus Christi in the
matter of the request of Central Power & Light Company for a general rate increase
for a fee not exceeding $17,500, with the understanding that his employment be sub-
ject to a legal opinion being submitted by the City Attorney by January 3, as to
whether or not the consultant must base his analysis solely on a City-wide study,
and with the understanding that the City Manager shall at any time during the
review determine whether or not to recommend employment of a second consultant;
and with the understanding that the City Manager may recommend an interim increase
before the consultant's report if he finds such action justified; and with the
understanding that comments and information will be received whether or not a
public hearing is held, and that all interested parties will have the benefit of
the consultant's report.
There being no further business to come before the Council, the Regular
Council Meeting was adjourned at 7:10 p.m., December 20, 1972.