HomeMy WebLinkAboutMinutes City Council - 01/31/1973• •
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
REGULAR COUNCIL MEETING
January 31, 1973
3:00 P. M.
PRESENT:
Mayor Ronnie Sizemore
Mayor Pro Tem Chas. A. Bonniwell
Commissioners:
Roberto Bosquez
Rev. Harold T. Branch
Thomas V. Gonzales
Gabe Lozano, Sr.
J. Howard Stark
City Manager R. Marvin Townsend
City Attorney James R. Riggs
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 Reverend Rush J. Barnett, Associate Minister
of First Christian Church.
City Secretary T. Ray Kring called the roll of those in attendance.
The Minutes of the Regular Council Meeting of January 17, 1973 were
approved as submitted to the Council.
Mayor Sizemore proclaimed February 4 through 10, 1973 as CHILDREN'S DENTAL
HEALTH WEEK, in recognition of the Nueces Valley District Dental Society's notable
contributions to the health and well-being of youth.
Nineteen City Employees who are retiring between the dates of December
1972 and February 1973 with a total of 474 years of service with the City, were
honored in appropriate ceremonies with Mayor Sizemore presenting retirement plaques
to each employee as follows: Fire Department - F. G. Kirby, 30 years service,
December 22, 197 ; Sanitation Department - Rosenda Flores, 26 years service, January
31, 1973; Crisoforo D. Sosa, 33 years service, January 31, 1973; and Amado D. Sosa,
Sr., 30 years service, January 31, 1973; Street Department - Gustave E. Clemons,
16 years service, January 31, 1973, and Elfego T. Leal, 15 years service, January
31, 1973; Engineering Services-- Guadalupe R. Gonzales, 28 years service, January
31, 1973; Public Utilities - Cecil H. Lancaster, 27 years service, January 31,
1973, and William M. Lidwell, 32 years service, January 31, 1973; Police Depart-
ment - Alexander Bullard, 27 years service, January 31, 1973; Christopher P. Rachel,
31 years service, January 31, 1973; and Edgar L. Lewis, 30 years service, January
31, 1973; Water Department - Genaro T. Medrano, 22 years service, January 31, 1973;
January 31, 1973,
James R. Wheeler, 20 years service,/ and William G. McGregor, 21 years service,
February 8 or March 31, 1973; Traffic Engineering - Jerry L. Diegel, 27 years
service, February 28, 1973; Library - Mary S. Morrow, 18 years service, January 31,
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Minutes
Regular Council Meeting
January 31, 1973
Page 2
Rios,
1973; Gas Division - Felipe/ 18 years service, January 31, 1973; and Sewer Division -
Gilberto R. Salazar, 23 years service, January 31, 1973.
Mr. Bob Smith, local director of United Way of Coastal Bend, assisted by
Mr. Bob Modlin, chairman for the City Employees campaign, presented special awards
for the City's total pledged contribution to the Fund of some $43,000, Four Silver
Awards and two Silver of Excellence Awards were presented to the Utilities Depart-
ment, General Government, Traffic Engineering and Corpus Christi Museum.
Mayor Sizemore recognized representatives of the Student Council of Tuloso-
Midway Junior High School, and presented Certificates of Attendance to the follow-
ing: Janice Rhoades, Karen Lang, Pat Pownell, Charla Bedford, Jennifer Nesloney,
and David Elbert. They were accompanied by their sponsors, Mrs. Curt GoOrisy, and
Mrs. Margaret Haney.
Mayor Sizemore called for the opening of bids.
Bids were opened and read by Director of Engineering Services for the improve-
ments to Horne Road from Columbia to MacArthur, from the following firms: Helden-
fels Brothers; South Texas Construction Company; Burtex Constructors; King Construc-
tion Company; Asphalt Paving Company; and Gulf Coast Paving, Inc.
The foregoing bids were tabled for 48 hours pursuant to the requirements
of the City Charter and referred to the City Manager for tabulation and recommenda-
tion.
Mayor Sizemore announced the appointment to Boards and Committees and made
the following nominations: Airport Board of Adjustment - Scott Cook, H. C. Helden-
fels, Jr., and T. K. Grant, reappointments; Bay Drilling Committee - Carroll Hudson
(Oil Industry), reappointment, and R. Kinnan Golemon (Oil Industry), appointment
to represent the oil industry instead of Citizens at Large, and Dr. Christopher
Isensee (Citizens at Large), appointed to replace Golemon who will replace Don
Presley; Citizens Advisory Health and Welfare Board - Oscar M. Garcia, DDS, reappoint-
ment, and Rev. Fred Allen, appointment to replace Rev. A. Arnott Ward, resigned;
La Retama Library Board - Rt. Rev. William T. Thompson, appointment to replace Rev.
Hollier G. Tomlin.
Motion by Branch, seconded by Bonniwell and passed, that the foregoing
nominations forappointmentsand reappointments to the respective Boards & Com-
mittees, be approved and confirmed.
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Minutes
Regular Council Meeting
January 31, 1973
Page 3
Mayor Sizemore announced the public hearing for the closing of the alley
located in Block 28, between Neal and Hayes Street on North Beach, Brooklyn Addition.
City Manager Townsend explained that the request had come from Mr. John L.
Stine and Mr. Wayne A. Johnson; that Mr. Stine's property abutted Lots 2, 4, 6 and 8,
and Mr. Johnson's property abutted Lots 1, 3, 5, 7, 9 and 11; that they plan to
build tourist apartments on their property and use the alleyway property for parking
and a paved driveway, Mr. Townsend stated the owner of Lot 10 and 12, Mr. Seastrum,
did not sign the petition, and that he did not know for what reason. He explained
that the alleys on Corpus Christi Beach had previously been platted in each block;
that some are open on the ground and some are not; that none of them are paved to
City Standards; that he had previously recommended that all alleys on the Beach be
closed, and saw no problem arising from the subject closing providing the existing
utility easements are retained.
Mr. Seastrum, 4324 Surfside, spoke in opposition to the proposed closing
of the alley stating his property backs up to the alley and it is presently being
used for garbage pickup, and that he would not approve having garbage pickupat the
front of the motel. He also stated he was opposed because the alley was the'only
access for fire equipment.
City Manager Townsend stated the only alternative for garbage trucks would
be from the front; that he had not been aware that it was being used for garbage
pickup, and with this new information, he did not now recommend the closing unless
satisfactory arrangements can be worked out with Mr. Seastrum, and would recommend
that the matter be tabled for further consideration of the oppositialvexpressed.
Mr. E. T. Cluff, 311 Hayes, owner of Texan Motel, spoke in favor of the
closing, stating it was not the plan to build structures in the alley, but only to
swing a canopy over it for parking and use as, a driveway, and the alley would not
be blocked. He stated that most of the garbage is picked up from the street and
that Mr. Seastrum's garbage is picked up at the extreme end of the alley.
Mr. Townsend stated Mr. Cluff should confer with the Building Official to
determine if some type of permit could be issued for the canopy over the alley.
Motion by Lozano, seconded by Bonniwell and passed, that the hearing be
closed.
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Minutes
Regular Council Meeting
January 31, 1973
Page 4
Motion by Bosquez, seconded by Gonzales and passed, that the request to close the
alley in Block 28, Brooklyn Addition, be tabled.
Mayor Sizemore requested that, in view of the fact that within the next two
or three years there will be numerous zoning changes and Board of Adjustment hear-
ings, a colored map of Corpus Christi Beach be made showing opened and closed streets
and alleys so as to be easily distinguishable.
Mayor Sizemore called for the City Manager's Reports.
Motion by Bonniwell, seconded by Bosquez and passed, that the City Manager's
Reports, Items "a" through "g", be accepted and that the requests and recommenda-
tions be granted and approved as follows:
a. That the date of February 21, 1973 at 4:00 p.m., Special Meeting, be
set for a public hearing on the following zoning applications:
(1) Josephine S. Davis "R -1B" to "B-4", located on the east
side of the 5300 Block of Ayers Street
(2) James D. Peterson - "R -1B" and "B-1" to "$-4", located
between South Padre Island Drive and McArdle Road, east of
Staples Street
(3) Pier I Imports - "B-1" to "B-4", located at 5717 South Padre
Island Drive
b. That bids be received on February 21 on a storm sewer improvement on
Norton Street from Kostoryz to Annapolis, which plans were previously approved by
the City Council on November 1, 1972, and authority granted to submit those plans
to the Department of Housing and Urban Development. The Department of HUD has
verbally informed the City that the project is not approved and the City's alter-
natives are either to resubmit an application and wait for funds to be released
or advertise for bids and finance the project with City funds. Norton Street storm
sewers was an approved project in the 1970 Bond Program.
c. That a Change Order to the Richter Area Street Improvement Project be
authorized in the amount of $4,250.00, which Change Order provides for the exten-
sion of 300 feet of 15 -inch reinforced concrete pipe in Milo and Ayers Street, and
is needed to alleviate a drainage problem which exists at the intersections of Milo,
Sacky and Johanna Street as they intersect with Ayers. No additional appropriation
is required as funds appropriated by Ordinance No. 11020 are sufficient to cover the
cost of the Change Order.
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Minutes
Regular Council Meeting
January 31, 1973
Page 5
d, That the contract with Environmental Installations, Inc., for the
construction of Candlewood Park Improvements, be accepted as complete and that
final payment of $7,450.49 be made to the contractor. The final contract price
is $33,757.19 which reflects an underrun of $199.97. The improvements included
installation of an irrigation system, play space with equipment, general purpose
play area, grading, seeding and tree planting. Candlewood Park is located west of
Williams Drive between Birchwood and Lemonwood,
e. That the Council approve a resolution that demolition completed under
the U.S. Department of Housing and Urban Development Grant TEX-M-2 has been in
accordance with the local and State law and assurance that all available legal pro-
cedures were used to obtain remedial action. The resolution covers the demolition
of 73 substandard housing units in four areas of the City,
f. That the first reading of an ordinance be approved granting Nueces
Electric Cooperative an additional five (5) year franchise. The present franchise
calls for 2% of the grantee's gross receipt and it is recommended that this be
increased to 4% to be in keeping with increases previously incorporated in the Central
Power & Light franchise extension. The franchise renewal requires 30 days between
the first and last reading of the ordinance. There are three areas served: (1) Por-
tions of the area between Padre Island Drive and Saratoga and between Airline Road
and Chapman Ranch Road; (2) in the Clarkwood Area between Kosar Road and County Road
#55; and (3) the area within the City west of Fri 2292 and South of Highway 9.
g. That the City Manager be granted the authority to apply for State assis-
tance to establish a Traffic Safety Coordinator position. The Office of Traffic
Safety Administration, Texas Department of Community Affairs, has offered a
three-year program which the State would fund for 2-1/2 years and the City would
fund for six months; the total project cost is $80,121 of which the City would
provide $13,325. The purpose of this Traffic Safety Coordinator will be to coordin-
ate the traffic safety efforts and activities of all groups and agencies in Corpus
Christi.
Mr. Doyle Willis, Chairman of the Traffic Safety Advisory Board, stated he
strongly approved the Council's action to grant the City Manager authority to apply
for State assistance to establish a Traffic Safety Coordinator position, stating he
felt it is a step in the right direction in terms of getting help needed to improve
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Minutes
Regular Council Meeting
January 31, 1973
Page 6
the accident record and death rate in the City.
City Manager Townsend presented the pending item relative to the request
to close the alley located between Lots 1, 33, 34, 36'and 38; of Block 3, Austin
No. 1 Addition, on which a public hearing was held December 20, 1972, at which
time there was opposition from the abutting property owners on the basis that
entrance to their properties would be blocked. He explained that he had talked
with these owners and reached a satisfactory agreement with all concerned; and
accordingly it is his recommendation to partially close the alley in Austin Addi-
tion No. 1 between Pueblo and Balboa Streets, which partial closing of the alley
would be from Pueblo Street to a point between Lot 35 and 36; that the partial
closing will provide for retention of access to Lot 35 from Balboa Street, but
restrict non-resident traffic between Balboa and Pueblo Streets, and subject to
retention of water and sewer line easements.
Motion by Bonniwell, seconded by Stark and passed, that the recommendation
of the City Manager be concurred in and the alley between Pueblo and Balboa. Streets,
in Austin Addition No. 1, be partially closed to a point between Lots 35 and 36,
retaining access to Lot 35 from Balboa Street, but restricting non-resident traffic
between Balboa and Pueblo Streets, and that an ordinance be brought forward
effectuating the closing.
City Manager Townsend presented the pending item of the zoning Application
of Mr. Ralph E. Krause for change of zoning from "R -1B" One -family Dwelling
District to "A-1" Apartment House District, on which a public hearing was held
January 3, 1973, and tabled pending a meeting with the U.S. Navy representatives
relative to Flight patterns.
Motion by Bonniwell, seconded by Branch and passed, that the foregoing
zoning request be denied.
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Minutes
Regular Council Meeting
January 31, 1973
Page 7
ORDINANCE NO. 11285
THIRD READING OF AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANA-
GER TO ENTER INTO AN AGREEMENT WITH THE U.S.O. FOR THE USE AND OCCUPANCY
OF THE NORTHWEST PORTION OF THE PARK AND RECREATION BUILDING, LOCATED
AT BELDEN AND NORTH WATER STREET, MORE FULLY DESCRIBED HEREINAFTER, FOR A
PERIOD OF FIVE (5) YEARS, BEGINNING JANUARY 23, 1973, AND TERMINATING
JANUARY 23, 1978, ALL AS MORE FULLY SET FORTH IN THE AGREEMENT, A COPY OF
WHICH IS ON FILE IN THE OFFICE OF THE CITY SECRETARY AND MADE A PART HEREOF
BY REFERENCE, THE SAME AS IF COPIED VERBATIM HEREIN.
The foregoing ordinance was read for the third time and passed finally by the
following vote: Sizemore, Bonniwell, Bosquez, Branch, Gonzales, Lozano and Stark, present
and voting "Aye".
ORDINANCE NO. 11286
THIRD READING OF AN ORDINANCE AMENDING CHAPTER 1 OF THE BUILDING CODE,
ADOPTED BY ORDINANCE NO. 10379, AS AMENDED, SO AS TO REQUIRE A BUILDING
PERMIT PRIOR TO INSTALLATION OF A MOBILE HOME FOR OCCUPANCY UPON A LOT
AND ESTABLISHING A PERMIT FEE OF $5; MAKING VIOLATIONS A MISDEMEANOR
PUNISHABLE BY FINE NOT EXCEEDING $200; PROVIDING FOR PUBLICATION; AND
PROVIDING A SAVINGS CLAUSE.
The foregoing ordinance was read for the third time and passed finally by the
following vote: Sizemore, Boinlwell, Bosyuez, Branch, Gonzales, Lozano and Stark, present
and voting "Aye".
ORDINANCE NO. 11287
THIRD READING OF AN ORDINANCE FINDING THAT THE CITY OF CORPUS CHRISTI
HAS EXTRA -TERRITORIAL JURISDICTION OVER AND IS PROVIDING WATER TO CER-
TAIN PARTS OF PADRE AND MUSTANG ISLANDS, THAT IN SUCH AREA THERE IS A
PROBABILITY OF POLLUTION AND HEALTH PROBLEMS FROM AN ACCUMULATION OF
SEWAGE WHICH IS A THREAT TO P'U3LIC SAFETY AND HEALTH; REQUIRING EXISTING
WATER CUSTOMERS IN SAID AREA TO CONNECT TO THE SEWER SYSTEM WITHIN SIX
(6) MONTHS FROM THE TIME SUCH SEWER SYSTEM IS WITHIN 300 FEET OF THE BOUN-
DARY OF SUCH PROPERTY AND WITHIN FIVE (5) YEARS AFTER SEWER SERVICE IS
AVAILABLE ALONG PADRE ISLAND DRIVE.
The foregoing ordinance was read for 6e third time and passed finally by the
following vote: Sizemore, Bonniw€;Il, 3osquez, Branch, Gonzales, Lozano and Stark,
present and voting "Aye".
SECOND READING OF AN ORDINANCE RELATING TO THE REGISTRATION OF
PROMOTERS OF CERTAIN OUTDOOR MUSIC FESTIVALS AND THE ISSUANCE OF
PERMITS FOR AND THE REGULATION OF CERTAIN OUTDOOR MUSIC FESTIVALS;
PROVIDING PENALTIES; PROVIDING FOR SEVERABILITY; REPEALING ALL ORDI-
NANCES IN CONFLICT THEREWITH.
The foregoing ordinance- was read for the second time and passed to third
reading by the following vote: Sizemore, Bonniwe 1, Bosauez, Branch, Gonzales,
Lozano and Stark, present and voting "Aye".
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Minutes
Regular Council Meeting
January 31, 1973
Page 8
SECOND READING OF AN ORDINANCE PROVIDING FOR THE REGULATION OF PARADES
AND MARCHES WITHIN THE CITY; DEFINING TERMS; DESIGNATING REGULATORY
OFFICERS IN THE CITY GOVERNMENT FOR ADMINISTRATION OF SAID ORDINANCE;
PROVIDING STANDARDS FOR ISSUANCE OF PARADE PERMITS AND REVOCATION; PRO-
VIDING APPELLATE PROCEDURES; PROVIDING PENALTIES AND SANCTIONS; PROVID-
ING REPEAL OF CONFLICTING ORDINANCES; PROVIDING SEVERABILITY.
The foregoing ordinance was read for 'he second time and passed to third reading
by the following vote: Sizemore. Bonniwell, Bosquez, Branch, Gonzales, Lozano and Stark,
present and voting "Aye".
RESOLUTION NO. 11288
RESOLUTION REQUESTING REIMBURSEMENT FOR THE FEDERAL SHARE OF DEMOLITION
EXPENDITURES UNDER THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOP-
MENT GRANT NO. TEX-M-2 TO ASSISI." RN A PROGRAM OF DEMOLITION OF
STRUCTURES WHICH ARE UNSOUND AND UNFIT FOR HUMAN HABITATION; PROVID-
ING THAT DEMOLITION OF THE STRUCTURES SET FORTH ON THE SCHEDULE SUPPORTING
THE REQUISITION FOR PAYMENT OF FEDERAL GRANT WAS IN ACCORD WITH THE
REQUIREMENTS OF STATE AND LOCAL LAW AND IN THE PUBLIC INTEREST; AND
DECLARING AN EMERGENCY.
The Charter R.c e wrae> suspended and the foregoing resolution was passed by the
following vote: Sizemore, Bonniwell, 6osquez, Branch, Gonzales, Lozano and Stark,
present and voting "Aye".
ORDINANCE NO. 11289
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, BY AMENDING ARTICLE 7A "T-1" TRAVEL TRAILER PARK, MOBILE HOME
PARK, AND MOBILE HOME SUBDIVISION DISTRICT, SO AS TO REQUIRE SUBMISSION
OF PLANS FOR THE CONSTRUCTION, ALTERATION OR EXTENSION OF ANY MOBILE
HOME DEVELOPMENT; AMENDING SUBSECTION 7A-2-03 MOBILE HOME SUBDIVI-
SION SO AS TO ESTABLISH MINIMUM LOT SIZE FOR MOBILE HOME SUBDIVISIONS
WHICH ARE COMPARABLE TO SINGLE FAMILY DEVELOPMENT; AND AMENDING
ARTICLE 33, PERMITS, PLATS AND FILING FEES, BY AMENDING SECTION 33-1, SO
AS TO PROVIDE FOR ISSUANCE OF PERMITS FOR MOBILE HOMES ON SINGLE LOTS
WITHIN A SUBDIVISION; KEEPING IN EFFECT ALL OTHER PROVISIONS OF THE
EXISTING ORDINANCE AS AMENDED; REPEALING ALL ORDINANCES .IN CONFLICT
HEREWITH; AND DECLARING AN EMERGENCY.
The Charter Rule war suspertded and the foregoing ordinance was passed by the
following vote: Sizemore, Eonriwell, Bcsq,Jez, Branch„ Gonzales, Lozano and Stark,
present and voting "Aye"
Minutes
Regular Council Meeting
January 31, 1973
Page 9
ORDINANCE NO. 11290
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AUTHORIZING THE CITY MANAGER TO APPLY FOR STATE ASSISTANCE AND TO SUBMIT
SUCH INFORMATION AS MAY BE NECESSARY AND REQUIRED TO ESTABLISH A TRAFFIC
SAFETY COORDINATOR FOR THE CITY OF CORPUS CHRISTI, IN ACCORDANCE WITH THE
ATTACHED EXHIBIT "A"; AND DECLARING AN EMERGENCY.
The Charter Rule was suspended and the foregoing ordinance was passed by the
following vote: Sizemore, Band°swell„ Bosquez, Branch, Gonzales, Lozano and Stark,
present and voting "Aye"
ORDINANCE NO, 11291
AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE ORDER NO, 1, TO THE
CONTRACT WITH HELDENFELS BROTHERS FOR CONSTRUCTION OF THE RICHTER AREA
STREET IMPROVEMENTS, PROJECT NO, 220-67-92,6, IN THE AMOUNT OF $4,250,
SAID SUMS HAVING BEEN APPROPRIATED FOR CONTINGENCIES BY ORDINANCE NO,
11,020, PASSED AND APPROVED BY THE CITY COUNCIL ON AUGUST 9, 1972; 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",
FIRST READING OF AN ORDINANCE GRANTING TO NUECES ELECTRIC COOPERATIVE,
INC., ITS SUCCESSORS AND ASSIGNS, AN ELECTRIC LIGHT, HEAT AND POWER
FRANCHISE FOR FIVE (5) YEARS.
The foregoing ordinance was read for the first time and passed to second read-
ing by the following vote: Sizemore, Bonniwell, Bosquez, Branch, Gonzales, Lozano and
Stark, present and voting "Aye"
Motion by Boraniwell, seconded by Branch and passed, that the recommenda-
tion of the City Manager be :incurred in and that future salary increases to all City
employees automatically it 9,.ide both Municipal Court Judges, and that the salary of the
judges increase as their years of service increases in the same manner as for all other
employees, with the following resc;lt: Municipal Court Judge 41, (Judge O. E. Cannon),
be classified as Grade 36E with a salary increase to $1,343, and Municipal Court Judge
#2, (Judge Robert Bunting), be classified as Grade 32D with a salary increase to $1,106,
and that an ordinance be brought forward effectuating these classifications.
It was agreed that City Manager Townsend be authorized to bring forth for
next week's agenda a recommendation to employ Mr. Max Dulnig, Jr., for appraisals
on the Oso Sewage Plant Land Acquisition.
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Minutes
Regular Council Meeting
January 31, 1973
Page 10
Mayor Sizemore stated that a vacancy in the youth category of the Human
Relations Commission exists, and nominated Miss Diane DeLong to replace Cheryl Bolin,
resigned.
Motion by Branch, seconded by Bonniwell and passed, that the foregoing nomi-
nation for appointment of Miss Diane DeLong to replace Cheryl Bolin on the Human Relations
Commission, be approved and confirmed.
Mayor Sizemore brought up for discussion the matter of a salary increase for
City Manager Townsend. He noted that Mro Townsend had been with the City for 16-1/2
years, had assumed the position of City Manager in 1968, and his last salary increase was
two years ago. He mentioned several cities of smaller size than Corpus Christi whose city
managers received higher salaries than Corpus Christi; also noted that Corpus Christi
Independent School District's Administrator, president of Del Mar College, and Texas
A & I University, are presently receiving higher salaries. It was agreed that an ordinance
authorizing a salary increase for the City Manager be placed on next week's agenda.
Following a brief recess, Mayor Sizemore called the meeting to order at
5:00 p.m. and announced the recessed public hearing on Central Power and Light Com-
pany's request for a rate increase. Mr. Sizemore noted that all members of the Council
were present, also representative; of Central Power & Light Company, and representa-
tives of the Consumers' Association. He explained that the purpose of this meeting was
to receive the report and findings of Dr, John K. Langum, the City's utility rate consul-
tant employed to make a determination of the service rates and fair rate of return to be
granted Central Power and Light Company.
City Attorney Riggs introduced into the record the following Exhibits:
Exhibit Marked #1, a copy of Dr. Languor's qualifications as a Rate Consultant, dated
January 1973; and Exhibit Marked #2, an Official Copy of the 72 -page Report and
Findings of Dr. Langum, dated January 1973, both documents to be filed in the office
of the City Attorney with the Court Reporter's Transcript of this meeting. Mr. Riggs
stated that in addition to Exhibits 01 and #2, there will be a third Exhibit covering Dr.
Langum's Summary and Narrative Report to be submitted later. Mr. Riggs briefly
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Minutes
Regular Council Meeting
January 31, 1973
Page 11
interrogated Dr. Langum relative to his qualifications as an expert rate consultant,
Dr, Langum expressed appreciation to CPL officials, City Staff, and Mr. David
Perry, attorney for the Consumers' Association, for helpfulness and assistance in compiling
this report. He proceeded with formal presentation of his report stating he had been charged
with making a study and an impartial valuation of the fair rate of return of Central Power &
Light Company, and had confined his studies to just that. He made oral comments from the
72 -page report, marked Exhibit 02, stating his judgments and findings to support his con-
clusion that, based on his studies, the 6 percent rate increase requested by the Company is
excessive and that he is recommending an increase of about 2 percent overall based on the
Company's merit in terms of its financial projected overall needs. He stated that based on
the Company's 1972 earnings and expenses, the Company is entitled to no increase, estimat-
ing the Company's return on the "fair value" of its plant at 7.25 percent in 1972.
Mr. S. E. Kelly, District Manager of CPL, requested that at least 30 days
be allowed for evaluation of Dr, Langum's report and recommendation, since they have
been unable to get in touch with their key attorney involved in this matter, Mr. Kelly
stated that the Compar:y's plan to revert to the 1959 rates is a possibility, but this probably
will not be done so long as the present request is under active consideration.
Following the 3 -hour oral report Dr. Langum, was questioned on certain points
by members of the Council, and persons in the audience were given the opportunity to
comment. No one from the aud°oence spoke.
An appropriate time for reconvening the recessed meeting was discussed
relative to time table and moratorium, and it was decided that March 1 would be the
latest date possible.
Motion by Stark, seconded by Lozano and passed, that the hearing be recessed
until 10:00 a.m., Thursday, March 1, 1973, in the Council Chamber, and that this
announcement would serve as official notice to all parties concerned.
There being no further business to come before the Council, the Regular
Meeting was adjourned at 8:00 p.m. January 31, 1973.
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I, RONNIE SIZEMORE, Mayor of the City of Corpus Christi, Texas, certify that
the foregoing minutes, same being for the period of January 3, 1973, to January
31, 1973, inclusive, and having been previously approved by Council action, are
by me hereby approved .
0
RONNIE SIZEMO'ayor
City of Corpus Ch Texas