HomeMy WebLinkAboutMinutes City Council - 01/09/1980• i
MANTES
CI'TV OF COMPUS Cli*JSTJ.-TRAS
ROMMUUIEMVOICIL MEETING
r !, 1900
940 P. ll.
I1111Ptl' Luther Jones
Oiler Pro Tem Eeiderri L. Sample
CCanci l members:
Or. Jack Oast
David Diaz
Jack K. Dump=y
ea4ra iitTSRy
City Manager R, Marvin Townsend
City Attorney J. Bruce Aycock
City Secretary Bill G, !lead
555471
Mayor Luther Jones'calied the meeting to order in the Council Chambers of
City Mall.
The Invocation was given by Mr. Charles Bradshaw, newly appoirtted member
of the Senior Community Services Advisory Board, in the absence of the Invited
minister.
City Secretary Bill G. stead called the roil of required Charter Officers
and stated that a necessary quorum was present to conduct a legally constituted
meeting.
!lotion by Diaz that the Minutes of the Special Council Meeting of December
12, 1979 be approved as presented; seconded by Dunphy; and passed unanimously.:
Meyer Jones administered oaths to new appointees to City Boards and
Commissions,..
Mayor Jones then announced consideration of appolntments to Boards and
Commissions en:l.reviewed the names that were discussed during the morning Workshop.
Meeting.
Motion by Turner that the following appointments be confirmed, seconded by
Dian and passed unanimously:
PtAlNlliiC COMMI5S1001 TEM TO EXPIRE
nr. Donald Shelton 7/3118o
DAY 1DRIE .EMG COMMITTEE
Mr. M. A. _ -$ears (oi Industry) - Reappointment 12/31/9z
Mr. Alvino Campos (general public) - Reappointment 12/31/82
MUNICIPAL ARTS COMMISSION
Mrs. Connie Freeman 3/41/81
MUSEUM ADVISORY BOARD
Mrs. Melba Chatham (!Museum Gui:'1 9/01/80
Mr. Raul tiesquez. Jr. (VW 9/01/81
Apel .011140111:4,3 4*+ Sh* 6*..1:10.:d
wt telt;lsif'Strait, arti>sege, sanitary ssassssr and waster linea for
lit lir 10_ acres of surplus tatty property south of
yetat +d►i o€ 'Par de Drive.
Lentos, Director of Engineering and Physical Devetopirnts
afk reedtkids from the following compersiesc Asphalt -Concrete Paving Company,
Son y (Leopard Construction Compeny) , a;ftd Claude Chapnsan
Evrestructien any, all of Corpus Christi, and verified that the necessary
:bid security band had been submitted with each bid. Ilk
NYtsr Jones stated that the bid will be tabled for 48 hours, pursuant to
tits T,equirsemants of the. City Charter._ and reforrod to the staff for-tabutatigrs.
recompepdation-
SagyestlAddition Street Improvements, Phases A and 0. This is a 1977 bond
prOject supplemented with fifth Year Coity Development funds and Includes
liPPremimetejy 5 miles of street reconstruction on the following streets:
If) french, Brannan and Segrest from the Crosstoren to South Port,
() Heedelr and Heirsley from the Crosstown to Morgan
Niagara from Baldwin to 19th
(4) Eley from Baldwin to gargan
(5) trews fro,n J-rancls to Morgan
The project IS divided into phases to encourage more contractor participation.
'improvements wi.l' include curbs, gutters, sidewalks, driveways. pevement and
related'storm sewers,
liar. Lcntot opeed and.r..ad bids from the following fines; Meldenfels Brothers'
to . ' ftsasss A and, h; Claude Chapman Construction Co. - Please A; King Construction
0:411400€ - these 0, and {sass Construction Company, lac. - Phases A and B. He stated
thltt t
estquyekfrisid security bond had beep submitted with ;Hof _of the bids,
Mayor Jones stated that these bids also will be tabled for 48 hours, pur-
*a- tlia reslurirasateota of the City- Charter, and referred to tiro staff for
reenmeendetion_
sstefaeirs #*,e***x
Mayor Jones talks[ for the City lscnarger's Reports. City Manager Townsend ... .
lr!'atmOted the following steak with related comments and explanations and reed -
that.:
111nmtes
Rs„lar Council lealtiog
Jan Cary i, 1510
# : 3
us +v`r 7,3SST ig4.. + lr'.0. Wi'.'
a..
6 public hearing be held on January 1G, 1990 on the request of Corpus Christi
Transportation Company, Inc_, for a taxicab rate increase. The last increase
was grante:d.on April 18, 1579. Current rates are $.85 for the firs- 1/4 mile,.
$.20 for each additioera1 1/4 mile and waiting time based on $8.00 per hour.
The requested rates are $1.20 for the first 1/5 mile and S.25 for each
additional 1/5 mile with a waitron tine charge based on $12 per hour. On
the average four eiie trip. the requested increase is 54.55%. The Company
is also requesting a night -tine (1.0 p.m. - 4 a.m.) surcharge of Si per trip.
received at 11:00 A.N., Tuesday, January 29, 1980 for printing 2,000 „rte
Urban T_ansportation Plan Maps for public distribution by the Department of
Planning and Urban Oevelopeent.
c. A spare tire for a unitary landfill scraper be purchased from GENERAL TIRE
SERVICE, Corpus Christi, on the basis of low bid of $2,448. Bids were
received from 2 firsnss. Price comparison shows an increase of 10.2% since
the last purchase In May. 1973.
d. A rotary blower be purchased from McKENZIE EQUIPMENT CO., INC., Houston, on
the basis of .only bid received of $11,785. The blower is for the Oso Treatment
Plant to provide additional air required for treatment during construction er
plant improvements. The blower will replace an existing blower and remain in
service there after completion of plant improvements.
e. A contract be approved between the City and the Community Action Corporation
of South Texas for preparing and delivering fifty meals to the City -County
Elderly Nutrition Program in Bishop and Banquete for $1.50 per meal and
$15.50 daily for delivery. Funds are available in the 1979-80 Nutrition
Program. The contract is to begin January 14, 1980 for six months and has
received preliminary approval by the Governor's Committee on Aging. The
service is needed while the Robstown kitchen is closed for rehabilitation
which is now underway. It is cheaper to contract for the meals because
the Corporation's kitchen at Kingsville is closer than the Nutrition -Program's
central kitchen at the HIALCO Center.
f. The Boys' Club roof repair contract be awarded to E. M. Castillo Roofing t
Contracting Co. for $22,000 and $24,000 be appropriated including related -
expenses. Five 'bids were received. The project provides reroofing all
the goys' Club roof except for the gym, where spot repairs only are proposed.
This is a 5th year Community Development Block Grant project.'
g. The following actions be taken relative to the Broadmoor Park Area Street
Improvements:
(1)
(21
The assessment hearing held January 2, 1980, be closed.
The preliminary assessment roil be adopted reflecting assessments of
$146,091.27 on 183 items. The roll has been revised to lnclude.3
changes recommended by Mr. Bill Holly and 5 partial deletions to
reflect credit for existing sidewalk on Niagara -Street. Other
sidewalk assessment reductions to reflect existing sidewalk on Niagara
Street will be submitted on the final assessment roll:
f3)- A contract for $821,493.55 be awarded to ADCC° far street improvements
and new water line installations, and $850,000 be appropriated for the
contract award and related expenses.
This is a 1977 Bond Project supplemented by 4th year Community Development .
funds.
-r
Ah
iPeatimp
is . Suds b..reoeftlmod.at We* at" ea undo,, January 29, 1004 . for the We of
w�si�>+ "ins ins iicrFff� �,ft•C siFLT�%-7[!ie-
property was acquired as Ooveeber 25, 1959 as part of the lift station site.
The excess property is zoned "1-2" and is located an Mc6ride Lane between
Up River iioad ane& 1,11,4 37.
1. Furniture for the Employment -Opportunities Program, estimated cost not to
exceed S27,000. be acquired by the Purchasing Division by informal bids,
• utilizing new and used equipment and purchase, lease or tease purchase
arrangements withen emphasis on acquiring new equipment, minimizing trans-
portation costs, and providing prompt delivery.
j -
'ne equipiasnt incsuaes 7 -typing nests, 35 other desks, 21 bookcases,
swivel chairs, 34 stack chairs, 7 conference tables, 6 storage cabinets,
9 secretarial chairs, 53 visitor chairs and 13 filing cabinets and will be
used In offices in Kingsville, lieevilte, Robstawn, Sinton. Alice and Corpus
Christi. A staff of 57 will serve over 5,000. persons annually with this
program.
A hearing be held on January 23, 1960 on the appeal of Mr. Don Anthony on
the decision of the Planning Commission to require Lokey Subdivision,
Tracts E and F, Lot I, to comply with water line requirements,. The 4.38
acre subdivision is located east of South Staples Street and south of Molly.
Motion by Sample that the City Manager's Reports, Items "a'" thru "j", be
approved; seconded by Turner; and passed unanimously.
* * e * * * * * * * * * * * * * * *
Mayor Jones announced the following pending zoning case:
Sirloin Stockade, Inc.: "B-1" to "B-#", Located an the east side of South
Staples Street, approximately 375 feet south of Doddridge Street.
This application was denied on December 12,. 1979 and in lieu thereof a special
permit was approved for a portable sign to be placed on the second parking row
subject to an approved site pian. An adequate site plan has been submitted,
Motion by Diazthat the site plan submitted be approved and the special
permit be granted for the zoning application of Sirloin Stockade, Inc.; seconded
by Dunphy; and passed unaniriousiy_.
Mayor Jones announced the consideration of the artistic proposal for the
lleyfront ...u..Sculptu-e and submission of a grant application to the National
£ndoia . t .for the Arts for one-half the cost of the sculpture.
City Manager Townsend informed the Council that funds In the amount elf
$50, arm .ovalLabia frees the hotel -motel tax fund for the thatching funds -from
-f• ; ` : 'h Covent - tom: t m da; €*ic* ,ase bs modo as .whither or
tot tic £lty should proceed with the steps required to obtain this grant for. this
....particular- S pt ,-- .
is
Mambas
illPar time
r
1906
-i cit llrelber, Diaz Inquired if the submission of tie .graest application
vu s lfarMted to the particular art work that was discussed during the ibrkshop
Meeting_
City Manager intermitted answered in the affirmative and explained that
the grant application must specify a particular artist and * specific piece of
sculpture, and the model viewed by the Council was the art work recommended by
•
the Municipal Arta Commission,
Mayor Jones stated that he felt that money should be spent to beautify
the City and indicated that he would be in favor of the application for the
grant for some piece of art work, but he did not think the Council should
approve this particular sculpture until they had examined other alternatives.
Mayor Jones suggested that this utter be tabled until the Municipal Arts
Commission. has had an opportunity to consider the desires of the public in
regard to the a.rt work to be placed in Bayfront Plaza_
City Manager Townsend noted that if the grant application for this parti-
cu er piece of sculpture Is not submitted now, there is a possibility that the
art work could be obtained through local funding.
Mayor Piro Tem Sample expressed the opinion that the Council should deems
thl* afternoon whether or not the grant application should be submitted at -this
tiers. 'Mr: Sa*pilts peslinted out that the Council's advisory board has made,avery
effort to-adrlsee the [cuncif in this *atter and expressed`appreectation for -the
woalt- tislet they have accomplished, but noted that the Council must make the deci-
sacro_ Mr. Sample continued by stating that since this sculpture Is ah abstract
piece of art, he did not feel that the total community would approve of this
ptrticutar Sculpture and stated that he will +des against Mails "proposal.
Council Member Wax indicated his concurrence with Mayor Pro Tema Sample
and stated that although he personally appreciates abstract art, he questioned
whmather or not this is the typo of sculpture that should be plated in the aayfront
14mtes 71(: Liar t moi' all -des bga net tltisittroPOS417
Council Member Zarsky stated that he likes this sculpture but that he
doubted that this particular piece of art ~mould remain to Mise lisyfrorat Pisia very
loco twins* It wilt be constructed of wood and, therefore, would be subject to
vandaliisea, gauss of this. iir. Rarsky stated that he did not feel that $1OO,QQO
8
Liitoor..tok c; 6 sitotbrag
rte«..rr- a- prat= vi. 4',4„ Tif Clipil7$' 1i i —vu ne'ribl. to acts -of Vandalism because Of the saaterials used, Indicating that he would vote against
the proposal.
tints by Sample that the propose/ fora grant application to the National
Endeent for the Arts be rejected; seconded by Diaz; and passed by the following
vote: Sample, Best. Diaz. Ih hy,_ Turper and Za.
Mayor Jones called for the ordinances. City Manager Townsend briefly
explained the ordinances and stated that he would lIketo,withdraw.i the second read-
ing of the ordinance that transfers responsibility for -Parks and Recreation, Marina
and Museums tb the Director of Inspect long and Operations.
There were no comments from the Council or the audience on the ordinances.
City Secretary Read potted the Council for their votes, and the following ordinances
were -approved'
THIRD READING" ORDINANCE N0. 15295:
AUTHORIZING THECITY IMAGER TO EXECUTE AN AMENDMENT TO THE FOLLOWING LEASES FOR
RENTAL OF SPACE AT THE CORPUS CHRISTI INTERNATIONAL AIRPORT FOR THE OPERATION OF
OF-KWT-A-CAR'- CONCESSIONS:
(1) 'Pagart;trewis Motors, Inc. (dba Budget Rent-A-Car), authorized by Ordinance No.
13511., dated December S, 1976;
(2) -Coastal lend Rent-A-Car (dba Avis), authorized by Ordinance No. 13508, dated
eco r,8, 1976,'
(3) =**Ili tOrporation authorized by Ordnance No. 13509, dated December 8, 1976;
.and,
(4l'Nmtiona1 Car Rental of Corpus Christi, authorized by Ordinance No. 13510,...
dated Decub i; 8, 1976,
8V DELETD 'IRON EACH LEASE THE LAST PARAGRAPH OF ARTICLE XIiI PARAGRAPH F, REGARDING
111E _PllilNINIT #1Ct OF-ADVERISEMEli.T OF SATE sculkontzs I14 -L Sr.; E. . .
-
foregn.fnig ordinance was read For the. third time and passed finally by the faitowing
s _ .lonalr': mattes /lest, Diaz, Dunphy, Turner and Zsrsky voting ' "Aye".
'illi ND''. REAOI NG 48111 NADtE , NO. 15296:
Al hDifik,CHAPTER 13 .QF THE .CODE OF ORDINANCES, CITY OF CORPUS CHRISTI, 1976 REVISION,
1✓:11DI : S-,,rTR i AND MATED HOII! h_ mus . Parie�eEs_ ..'Jfa'.." •�-----
3 iiINS 'FROM LICENSE -REQUIREMENTS; SUBPARAGRAPH (4),
TI$( fIKST S NTENCE TFEAEOF, SO AS TO ALLOW AN EXEMPTION FOR FEDERAL AND STATE GOVERNMENT
FACILITIES TO --RICLUDE'-SLICH FACILITIES LOCATED ON LOCAL GOVERNMENT PROPERTY: AMENDING
T il— • A I�rr i it SLISPATIA►wl i4 A RE MURDERED
EDORI2E THE
_AttL tri OF:FACTORY REPRES£NT*TIVfS OR SPECIALISTS INSTALLING HIGHLYECOMPLEX OK
SOICIALI4ED.EQUlfeiRT: REPEALING' ALL OROINAIIC£S IN CQ.IFLICT HEREWITH; ANO PROVIDING
FOR: POOLTIO*.
The fo iagolesyl ordinance was read for the third tine and passed finally by the following
vote,.— Jo111a5, Sampler Beat, Diaz, Ouonny, Tanner and Zarsky wt ing "Aye",_
}
rtInutes
egeTacill Meeting
9 1910
7
ORI INANCE NO. 15297:
Ata}T ORIZIMG THE CITY MANAGER TO EXECUTE A CONTRACT WITH THE COMMUNITY ACTION CORPORATION
OF SOUTH TEXAS FOR THE PREPARATION AND DELIVERY OF FIFTY (50) MEALS FOR THE CITY'S
ELDERLY NUTRITION PROGRAM UN BISHOP, TEXAS, AND DANOUETE, TEXAS, FOR A PERIOD NOT TO
EXCEED SIX (6) MONTHS, ALL AS .LORE FULLY SET FORTH IN THE CONTRACT IN SUBSTANTIALLY
TLS. SAME FORA ATTACHED HERETO, MARKED EXHIBIT "A" AND MADE A PART HEREOF FOR ALL
PERTINENT PURPOSES; AND AUTHORIZING THE EXECUTION OF ALL DOCUMENTS AS MAY BE NECESSARY
IN THE CONTINUATION OF THIS PROGRAM. AND DECLARING AN EMERGENCY,
The Charter Rule was suspended and the foregoing ordinance passed by the following votes
Jones, Sample, Best, Diaz, Dumpily, Turner and Zarsky voting "Ayer',
ORDINANCE NO. 15298:
AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH E. M. CASTILLO ROOFING i CON-
TRACTING C0ClANY FOR REPAIRS TO THE BOYS' CLUB PODF; APPROPRIATING $24.000 OUT OF THE
NI;. 142 FEDERAL/STATES GAIWIT fd9D, AC': IViTY 4744, CODE 502, 5TH YEAR COMMUNITY
DEVELOPMENT BLOCK GRANT., OF *ilii $22,000 I5 FOR THE CONSTRUCTION CONTRACT AND.$2-O40
IS FOR CONTINGENCIES, INCIDENTAL AND RELATED EXPENSES; AND DECLARING AN EMERGENer.
The Charter Rule was suspended and the foregoing ordi.nanye paFsed'brthe following vote:
Jones, Sample, hest, Diaz, Duwphy, Turner and'Zars'ky rating "Aye".
ORDINANCE NO. 15299:
CLOSING. THE HEARING ON STREET IMPROVEMENTS FOR THE FOLLOWING STREETS:
1. Niagara, Sarlte, and Cleo Streets, from Baldwin Boulevard to South Port Avenue;
2. 5'anore Street, from South Port Avenue to David Street;
3. &Denial Street, from Sarita Street to David Street, and
4.•.Shely Street, from Klagara Street to David Street;
ANO„FINDING AND DETERMINING THAT PROPERTY ABUTTING SAID STREETS WILL BE SPECIFICALLY
IEIIEFLTEO AMD 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 COLLECTION;
11110 DECl.AR,NG A11 EMERGENCY.
The Charter suu nos suspended and the foregoing ordinance passed by the following vote:
.Cones, Si* Best, Diaz, Dunphy, Turner and 2arSky voting "Aye". .
ORD 1IAiiCE 11Lt 4300:
•
Ali OVIZ IGT#ifF Ltd 140.1GER TO EXECUTE A CONTRACT WITH ASPHALT PAVING.. CONSTRUCTION
-common* CORSTROCT10R OF II E NROADIIOOR PARK AREA STREET IMPROVEMENTS -PROJEI:T';-
M'P*OPRIATIHE *850.000, OF 11EH:1£N $146;091.27 IS OUT OF THE NO,. 220 STREET BOND FUND
I}IiIE *703,90073 15 eur OF THE NO. 162 FEDERAL/STATES GRANT FUND, ACTIVITY 4741, COLE
', Fou m:.TEAR CON!!lMLITY DEVELOPMENT BLOCK GRANT $821,493.55 IS FOR THE CONSTRUCTION
CONTRACT 114 331,,506.455 E5 FOR AAOITIONAL ENGINEERING, LABORATORY TESTE.NG, INCIDENTAL
MW *FATED EXPENSES APPLICABLE TO PROJECT MO. 220-77-2.8, RROADM00R PARK AREA STREET
`Ill 11t1ENTS; ANIT0ECLAR[NG AN EMERGENCY. '
The Charter Aule we* suspended and the foregoing ordinance passed by the following vote:.
jams, Sample, Bast, Plat, Pu, y, Turner and Zarsky voting "Ake",
•
AlIentea
Par tusem° using
" - .
'Sage 11
UONNCE NO. 15301z
AMEN9#l* TWE ZONING ORDINANCE 3F T L CITY OF CORPUS CHRISTI ADOPTED 00 THE 27111 GAY
O3 AUGUST, 1937, APPEARING OF RECOen rg VOLUME 9. PAGES 565, ET SSQ, OF THE ORDINANCE
ANO RESOLUTION KECO RDS, AS Ammeo FROM TIME TO TIME AMO PARTICULARLY AS AMENDED' NY
ORDINANCE AO, 6IO6, AS AMENDED. 0PDA APPLICATION OF SIRLOIN STOCKADE, INC. BY GRANTING
.e:i.m .su" "114141I1C
BULL SIGI. TO OE PLACED DA TME SECOND ROW OF LOTS 10. 11, 12 ANO t3, BLOCK !}-1, POPE_
PLACE UNIT 1, IN THE CITY Of CORPu$ CHRISTI, NUECES COUNTY. TEXAS, AS _MORE PARTICULARLY
DESCRIBED ON T1IE SITE PLAN, A COPY 01 111I1CH IS ATTACHED HERETO ANO MADE •A PART HEREOF,
MARKED EXHIBIT "A"". SUBJECT TO THE CONDITIONS SET FORTH HEREINAFTER; KEEPING. IN EFFECT
ALL OTHER PROVISIONS OF THE EXISTING ORDINANCE AS AMENDED; REPEALING ALL ORDINANCES
1N -CONFLICT HEREWITH; AND DECLARING AN EMERGENCY.
The Charter Rule was suspended and the foregoing ordinance passed by the Fallowing votes
Jones, Sample, Best,- Diaz, Cumphy, Turner end 3arsky voting, ''Aye".
ORDINANCE NO. 15302:
CLOSING THE ALLEY 'LOCATED 1N BLOCK 4, SUNSET PLACE., 111 THE CITY OF CORPUS CHRISTI.
NUECES COUNTY. TEXAS; PROV1Ot G FOIL SEVERABILITY; AND DECLARING AN EMERGENCY.
The Charter hale Wats sUspnded and the foregoing ordlnanne passed by the following vote:
Jones. Safrole, Best, Diaz. t1 I'y, Turner. and 2arsky voting "Aye",
ii'
* * i * * ? A ss * g * * * * A
•
mayor-.,tosres announced the public hearing on the request .of Central Power.
and—Light Company Tors rata increase. 0A DecaMaer 5. 1979. this public hearing
mei recessed until January -3, 1980.
-, Ma;l
Mayor ocee* e P ai.n d that Central Power and Light Many kt11 be .i}.lawed-
one and tame -half le urs for their presentation; OM' City's cnnsultafsts aril1 be
o1.1ow d the same length of time for their presentation; and €olla#Ing.#hat, the
Council will hear comments from the p.ab:lc.
Ar. V. N. Itnolsey. Attorney with the 1*w firm of Moberg, Oyer, Redford .
amALVeit, s.tattd t at he teprt4ents Ceetral-Pyr. and Light Company- in thts aaestter.. :
Ade Illtr:1144ced Hr. S, E. ]t**11Y. Jr„'District Manager for the Central District of
. lrls company.; . -Jr, art "ash, Executive Vice President and Chief FlftancIal
Off.icaT mf Central icer and Light; Mr. Merle Borchelt, Executive Vice President
LChlef lEn Tneer_; Wr'- inck-;rev=. , Whoi r ,:.,. sista La Om 44-4 mats and
bookkeeping side of the .rate cast; $r. Tom Cr}uer, !tanager of rates end internal
atft,,3rs; air. Feaeris Jeffries. Exe:sutive vice President of Goff and Phelps; and
ftr. Dal Nosier. r`^.'EA $i rolaticsaeg for Central- P. - e and Leah6 Glx AOY,
.101teittet-..
Coomell-maetto**
1100-.
- Port,
hisoasey called on me. Range to *peek first.
. _
Mr. Range noted that a utility rate increase is not * Pie/mint eabiect mod
Central Power and Light Company realizes that c4stomers complein aheut the burden
0* inflation and the Companysympathizes with the in this regard-. He stated that,
am evaluation has been rade by the Company and they feel that they must ask for a
rate increase.
Mr. Range continued by WifiligliTg-t-traf-aecars--.,...--- tails)
they -recognized years ago that with the shortage of natural
gas,
it was neca.7,sary
to plan and act to assure a firm supply of electricity for their customers, and
consequently. they bed started. construction of the Coleco Creek Plant that uti-
lizes coil to generate elettricity; the South Tx A$ Nuclear Plant which will
met nuclear power to generate electricity was started in cooperation with other
entities and Unit 1 is scheduled to bt in operation in 1984 and Unit 11 in 1986;
end C P L has alto obtained lignite plants in East Texas. Mr. Rane stated that
_the Company Is also engaged in a number of research methods in 4P attempt to Obtain
other sources of fuel, Incluileg geothermai power, solar power, etc. He assured
the Coun011 that they aft In favor of any sources -which prove to be environmentally
acceptable. Me indicated that the Company cannot engage in all of this research
itSfasa tbmy have adequate -financial strength* becau'e they must attract Investors.
and this requites a good financial background.
-.Mr.-0onfle *Waved charts and mxhiblts shooing inforisqlon for the years
=
1075 thrm 1,71010atch Indicate that C P Lew have.* rate Increase baceust.,-:=7.
;Athol/eh the compare* floinc401 situation -was atitisfictnry through 1977* in 1978
thafrAwarnimarratfOr decreased. Mr'. Range further explaint4 that in 1570, tht net
mMrmfilif of 1.9$ million Included monroperating:Incommi and the company ceitulated
thelm *Prange andslettreleed.thet it was insufficitnt to soli mart bonds,:
$1t., Ramos thew reftrred to the covertnes construction an various plants,.
4mtPdh4:iiiii24ifstei r. Pat And thm-iouth Taxa* Plapti-x-astated-thmt oh-
cootoPt*41! Oat a plant moat be In-operation:to stoilltfy for Tett beat leclusicet1
emmavtr, ithe* eines been ruled the; CWi (Conetruction *irk /* Progress) can ha
tncluded in the rate base.
Mr. Range informed the 'Council ttpiPt Thrg Public utility tomissi jtf
fat .,-;gw. r,t£
air *Air
A.
er1s.ritc040040 a Vi...492,P00 eiettooe iercraase, but after meetings were beWd w t
* i is eS r$fi -nfd
L—,:__�_ _-- __--=—
-" tri rsisa of 565,47/,000, and the folic Utility Commission indicated thatthis
would he aacevtaiple. Nr., Ranee €r:rtner state4 that the Company realized that the
process of rate design is eom ,ox and th.t the cbitctive i$ to design rates accord-
ing to the kind of custamers.they have. He displayed a Oe chart she,:i,,a the
follow+ breakdown of the rates. Resident al Customers - 3o:ta Commercial - 304;
targe Industrial - 351t; and balance: of 5 . icer other categories. hr. Range sum-
marized his presentation by requesting the Council to hold in abeyance the issue
of rate designs perching tie report of the Public Utility Commission.
Ota.
Wbotsty addrass :. inn Coved: - aiin and referred to the caro revs#se
settlement agree cc apareye;: by PubiiC Utility Commission. stating that ,. r L
is no longer requesting the anognt or $94 00,000 far rate relief -and have agreed
to compromise of $65.47=.000. Mr. ucels.y n,ttd that it was his understanding that
the•City is not bound by the compromise reached by PUC. Relisting nut that the Council
is free to de as they desire, tie enumerated the possible actions that could be
taken by explaining that the Ceurl:.l z =; d-uly the Company's rate request alto-
gether; they could respond by approving all of the rate relief requested for the
temPanirt find that the S45,/1f,.U00 rate 9s reasonaaie; or hold the Best in
abeyance and find a levet of their awn.
$r. Weel.sear continued by stating that It everyortiCe-C4Netiemis A. range
of reason Witb3o which ratief can be granted. #e emphasized that the tos panrrdid.
not ask fora tate increase without abserv?.r-j certain indicators that dictated that
tib omPacay Must receive rate relief and further pointed Dui that the figure¢..ysed•
t�e:,#adsa. >rtt+. tate year ending Janne 30, 1979 and the Company's talcut'atians verify
t i crv.had a revenue ur deficiency of $94,$i}0,= + . Mr. Wools further noted that
r, 0000'se atf $6 5.471,000 was vary signif{.cant and urged that the Council
nonce i_ngnesS.e, -,
U.001'ziel.Aberaiaz.aSited what percentage of tacee4S4 this rep
r..rI14004eT:ntRliedthat the.Pereentala..f increase is 13a for
esented_
tine .con-
Counci 3 member i;arSls4- stated that he felt that everyone is aware of the •
f feeenue deficiency and it °sagenerally accented that this T an in€ia-
nala
n pr '*'r.tAyI cr net 'E-- 1 is possible fto tho;t %3 ty
iliaalir mirk Meeting
.1*
Coppery to shQw the Cannel what methods they empiny to assure that their opera -
tines are the most effiTent Bo economical maisalt4a, Me. .3srr idiraCQdytlat
this is his primary concern.
Kr. Woolsey replied that unless the City conducts an internal audit, which
would require a great deal of time, there is no way to determine that the company
is being operated in the most efficient gray possible. hr. Woolsey referred to the
City in connection with the rate increase
and expressed the opinion that there Is no question about their accuracy and to
feels that this shows the degree of efficiency with which the Company is operated.
Mir. Woolsey further stated that he feels that the Company's filing material indi-
cates that they are not over -building the system, even though they are incurring
tremendous costs in -their efforts to find fuel other than gas.
Hr. Mange elucidated further on this question by pointing out the effi-
ciency of the operation of the company, stating that during the seven-year period
leading up to the test year, the Company had reduced its overall work force by
10* and this reduction was made in spite of the fact that the company is serving
many more customers. He also assured the Council that the Company pursues every
avenue to be sure ofthe procedure to be followed before it is committed to spend
money on any projects.
Eta. Woolsey also reminded the Council that the Company last requested a
rite increase in 1976 and previously in 1§72, but prior to 1972, the Company
appeared before the Council to reduce rates rather than increase rates.
Council Member Best noted that 13.6$ Is the rate increase requested at
this time and Inquired as to when it Is anticipated that another increase will
be requested. - . .
Hr.Mboiseye explained that if the compromise rate Increase Ts approved,
it •ef.1 be less than 13.€$ and indicated that the Company will request another
--tate increase_ €s +tet ..tt 1$ iaont-hs rroem now. :.. - ..._.
Council Member -Best a asked If the Counci
yy# WW
W:TA'4"'
Si
9i
Mr. Mange Indicated that thk "wy eotirel+; possible.
Council lea Teton noted that C P 4 L is a one-quarter owner of the South
Texas nuclear Plant and ioquired if the costomers of the other three censers are par-
ticipating in the cost of the plant.
Mr. Woolsey replied that the customers of the other cwners are participat-
ing in the cost of the plant, toting that CWP may be included in a sate case.
Mrs. Turner pursued the subject forther arid enquired es to the itn �cs�uc.,.�
if CiiiP were not iecis:ded in the rate case.
Mr. Range stated that tilt f -zany :mould be in great difficulties if tWin
were snot considered as a part of the rate. in; r?rase_
Mr. Merle Borciee'', Executi.e ¢l,e President and Chief Engineer for C P b L,
explained to the Council that in.. order for the Cc pany to diversify their source
of energy, this entire operation was started over ten years ago to 'see that C P L
Chas the South Texas Plant for rrer_lear energy in order that they would not be
dependent upon natural gas when It is no longer available.
Council Member Turner inquired if the Company was of the opinion that the
use of nuclear pozer would be less expensive to the consumer.
Kr_ Borchelt replied that they fel: that it would be and also pointed nut.
that the Company also predicted that the use of coal from the Goleta Creek Plant
would also provide a cost reduction in `bel expense but not as much as nuclear
power.
Mayor Jones referred to Page 34 of Mr. Francis E. Jeffries' testimony
before the Pith -lie Utility Commission in which he stated, "Unless the coverages
improve, ohe Company's "AP" band rating win be in jeopardy and its financing
€iexibiilty kill be further restricted," and asked for an explanation of this
statement..
lEr. .te#'Frles expialead that inorder for the Ccopany to maintain a "AA'e ' - ' . sE- :r I.»r .& c rtapn.rerceutaue Of pre-tax000nenago, and oodwr
1Xe ms 's original rate Increase reOusst, this coveragewas to go to above
4.5 times, ##r. ,ieffrieS rued that at the comgornise increase level, he is not
sure .° the ,ire --tax Anterest crver4ne'ratlO and stated that he is of t6- 9.910icn
Sit t•hr ratio wail he eaeiow. *lee- tines wed it is questionable whether or not
`o "Ftp' boot r. t z for tho
n;u
..'"_,stet{
Regular Council lrs,aaxitryJeetretY -11.0.
13
yitegor JSIesesked for as explanation of the expense.necessitated by PIMA.
-- lir: 'Ile r
esponded by stating that PUPA Is one part of the Motional
Energy Act; the Caepany Is required to
comply with the policy stipulated by this
ea; and in order to do so, awl!! be necessary for the Company to employ addi-
tional personnel- He further explained that CRs requires a type of meter to
obtain information on customers for the Regulatory Committee.
in PURpA.
Mr, Carlee replied that this is a type of rate that is advanced to assure
that low income customers have available to thema certain gurenteed rate; the
Caampeny has not proposed lifeline rates because such rate design is in conflict
with the stated objectives of the Company's_rate Thrate design; and the Company is a
the opinion that problems associated with the ability
of the poor or elderly to
pay their bilis Ts a social
problem that cannot be fairly solved through utility
rate structures and should be addressed by appropriate governmental agencies.
City Manager Townsend referred to the matter of design of rates and
noted that the present rate'schedu)e and the propnsedl<schedule have a special
discount to customers who have electric hot water heaters. Mr. Townsend asked
for an explanation of the reason this discount is included in the rate design.
expressing the opinion that this is strictly -a promotional rate.
Mir. Curie* explained that this discount is included because the Company
is attempting to determine the times of heavy usage of hot water heaters, indi-
eating that they feel that the hot water heaters are seldom used in the middle
of the afternoon.
lir. Woolsey spoke again In me
regard to blip and inford 'the
g Council -that
the Texas Regulatory Act specifically permits the inclusion of Construction Work
in Progress to be included in the rate request. fie stated that before this ruiino
--was tf effege, terra ilea.," auestim a3 te iia, ti6tr should pa _
- .. y for new
construction.
e erence to 1. feline Rates as included
mile ling the cociOusinse of the C P d t presentation. Mayor Jones recessed
the. meeting for f;win minutes et 4:25 p.m.
* * * e * * i * * k * t h * * t 4 *
1
:.!L-rte{r �s✓
-*tattle laresaredfail teettieg
/1060
lapr,4
Mayor es reconveeed the meeting at 4:32 p.m..
City Manager Townsend explained to the Council theta number of cities had
joined:together in the. employment of consultants to study the Central Power and
Light Eoepany rats increase request, and the consultants have been guided by a
committee of these cities. Me stared that the appearance of the consultants -at
this public hearing is at this City's request and expense as a separate hearing
process, but the consultants' work was performed es a result of the combined '
emplownt. Mr. Townsend informed the Council that two representatives of
-Touche Ross and Company and an attorney from the law fine of McGinnis, Lochridge
and Kilgore are present for this hearing.
Ik . Gregory Tarasar. Touche Ross and Company representative, addressed
the Council first and presentedasummary of the t P S L proposed revenue req••''... -
F
events and adjusted value of invested capital. Mr. Tarasar stated that Central
hewer and Light Coi any had reported an Increase in revenue requireeeents of'
$94,809.000; the Touche Ross staff had provided testimony that their estimate of
increased revenue requirements was $47.3Z0,000 plus the estimated gross receipts
tale -which would. result in a modified figuLe of S53.248,000; and the Public
Utility Commission Staff had estimated the increased revenue requirements would
be.371,4,000. Mr:. Tarasar informed the Council that the stipulated settlement
agreed to by the PUC -staff and C P & L cos_565.471,000. Mr. Tarasar then briefly
reviewed the presentation wade by Touche Ross d ring the hearing before the
City Council on January 2, 1980. (Copy of this.Presentstlon Outline Is on file.
In the Office.of the City Secretary.)
Speaking next was flr, Earnest Casstevens, Consultant -Attorney with the
firs of 'McGinnis, tachridge b Kilgore. Mr. Casstevens reported to the Council
that a proposed resolution had been prepared by the cooperating cities in the
'LO stsyst a. &edthe staff has demised sae* changes. He stated that the reso-
lotion :includes the recomeeedation that the settieaent figura should be $65,471,000,
Miei[h he felt was the best possible settlement mount that could be negotiated due to
the fest that the Parb11c Utility Gomnissik mIght rule that a different mount
should trot approved after the litigation by tier large Texas industrial Energy Consumer
Miowees
-Ialr iCoweei Meet lee
i tereenors le the rate C4Sot. C.r. CxSstevens *ism elated that tl?ty were eeneerpee
eteette.teeeeteeeeetieeeckaesekeere aroetd have to pay more than the Company every
requested led suggests that the City should .ke ciao Pee aware that they do not
agree with that_ Me see nde3 that tine Ca any he aut criz d to increase its
revenmes € S65,471,000 ee fetruery 4, 19$C, that increase to be collected from
the varices classes in the way wows€ on the corsparisem of revenue requirements
listed oo the exhibit attached to the. proposed resolution, which would designate
6.9g as the percentage of increase for reside€stial crisstorssers.
ler. Casteyens santieued be pointineeut that the _matter of price elasti-
city adjristwent is over and above the figures discussed grad he is recommending
that s eh adjustment not be alieered. tie staters that the reason he recommends -
against tee allowance of price elasticity is that fnlloeing the last rate Increase
far- C P C L, there was no etecl ine ie sates-, ant be does not feel that treere will
-be a decrease in sales or use after this rate 'increase is approved.
Coursed Mesar lanky stated tti t he was under the impression that the
testimony presented before the PUC hearing was based on conditions in rural areas,
not City conditions.
Mr. Casstevens stated that actually this was not true, because the company
was viewed as a whole for its entire aperatiore
City Manager Townsend explained to the Council that during the rate
Increase requeet of 1`976, the City's consultants attempted to have the Company
provide figures for each individual city, but the Supreme Court ruled.that the
Company could not be required to separate their costs_and charges far each, indi-
vidual city.
Council Member Dlaz noted that Mr. Casstevens recommended approval of the
negotiated figure of $65,471,000 and asked if this is approved, is he of the opinion
that the case will not be appealed to the PUC.
Mr. Casstevens expressed the opinion that the Company will appeal any deci-
C , rvxn If the City does adept the campeeeiee fIgu e.
Council Mir Diaz asked why the Company will appeal if the City approves
the figure that has prrtvi .ssly been agreed upon by both the Company and PUC.
tern
ltegathe mix Materiels:
CYManeger Towntend rep s iem thea any appear w't fl be filed as to how the
-awes r;rsce:ttuar,zS-
Mr. hick heertz„ Afei isteetive Assistant in The City Kenager's Office, also
stated that the £gained; mss. eot agree to the inclusion of price elasticity, the
Coemarey eay appeal this cos: ae C.
Council -Member surrey referred to the statement that the "AA" rating for
rtd€e porpoleeeet be €gin lee aedv and asked 1r. Caseteyens €_r hie .n.tniea-n..
- that.
4
! r. Cassteeens replied that there are only three "AAA" ratings In the State,
and Dice of than eaintaie a ratio of ' to sustain that high rating; therefore, he
doabted the t p a t stetteint ;cab they nicht lose their {'AAie rating. . .
City ildt'sager Townsend su-'arized 'she conclusions made by the City etafr-ay..
stating that it is recommended that the City of Corpus Christi approve the recommen-
dation! made by the cooperath9 cities_ i9e stated that on the question of rate
design, there is included in this a regceest for an increase In municipal rates and.
street Tigl}tirea casts. lir. Townsend noted that the rates at the fast increase did
Opt even recover their costs for fuel, and tee fact that the public rates are going
up the greatest: anoutt should be considered with the understanding that the franchise
gross receipts tax would be increased accordinrely, and the cities would receive this
increased amount. He expressed the opinion that public customers should have the
optime to use the commercial rate it ft is less than the public rate. _
h -regard to the promotion rate for use of electric hot water heaters,:
City Manager Townsend stated that the staff feels that this should net be included
the rate stru Lure.
Mayor Jones gyeest;nest tar. Terasar about the inctuSion of pol idealcon-
to ibutioes ire the rate making figeeres.
Mr. Tarasar stated that under the POC ruling, political expenses must be
removed from the rate request, and City ;tanager Townsend stated that this is not
-- --proper for use in rats rrakany_ purposes.
Mayor Jones suggested that since bath C F s T, and the City's consultants
have made their presentations, it ,sight be appropriate to hear gents from the
audience et this .tine.
Ix',ri tat
natet':n%
3. 12.0
Mr.. Donald M. gest, Sal Marion Street. presented a petition coataininq
between 31PO and signatures of customers expressing opposition to the rate
- fncmraa3a rtt4btstaniC-I-� -.� . �._ .Bee _ tete+ abet the crux of this 'natter has
; �-r
not buns addressed and escprested the opinion that a lame ant of C P i L funds
are being expended for time nuc€ear plant it Bay City. 1r. Best pointed out that
Mr. Range lead indicated Haat everything is,in order in the construction of this
plant but that he was aware that the Company is in financial trouble and the con-
colic Ion nf.;__tht_21ant. has leen delayed. ltr. Best also expressed the opinion that
C P S i. has mode some bad management policies, particularly in regard to this
plant. He stated further that he felt that C P o L and their stockholders should
bear the expense of these mistakes,.not the consumer. Mr. Best quoted from a
national report that indicated that nuclear z e-r_'y 1.4 no better than coal which
'will be produced very soon at the Company's Coteto Creek Plant. He suggested
that construction should cease can the nuclear plant at Bay -City. Mr.. Best also
expressed opposition to the theory of having current consumers pay for a plant
that will serve future generations. He concluded his remarks by requesting that
the City reject this rate increase request.
Speaking next was was Fes. Gail Sales, 1706 Whittier Drive, who stated that 44;
f
sine was speaking as a concerned consumer and a mother. Ks. Sales stated that -she
is opposed to the rate increase primarily because of the expenditure of funds for
the nuclear plant, noting that there has been evidence to the fact that the plant
at say ilty is unsafe and would present a danger to area residents.
Ms. Elizabeth Kussmaul. 3841 Marion Street, urged that this rate increase
be denied and a lawsuit filed with the Public Utility Commission In Austin. She
expressed the oph on that C P c L has mads same very poor management decisions
in the past feet years, particularly in the decision to build a nuclear .plant,
noting that construction on the plant is behind schedule andconsiderably over
budget, which is the reason the Company is in financial difficulties. lis. Kussmaul
reminded the Council that all over the United States, construction and operation of
nuclear
pins has been discontinued. Is. Kussmaul also expressed oppositTori to the
inclusion of price elasticity clause in the rate increase request. She indicated
that she, too. felt that the City could bring this matter to court.
R atr4 dux Lang,, 4401 Oneffeld. stated that ha is a professor of
• ikbleirea,3h4tt and that. he Is opposed to the rata increase because he
dents. not feei that the residents of Carpus Christi Should have to pay for the
mistakes made 1,.LL In the costrxt.t.icrs. 44 the nuclear plant. rtr. de tong
painted out that tate plant is ti dor,- cr to the residents; there have been numerous
nruclear accidents; nuclear waste will continue to arose a disposat problem; and
there is airways the possibility of radiation leakage. Me summarized his remarks
by urging the Council to deny the rate increase request.
Mr. Slit Demost1t-as, 533 these Street. also urged the Council to reject
the request for a race Increase because of the ,paste of money for the construction
Of the nuclear plant. ar. ;hems 'gas oot that if the Cotmcil approves this
request, a precedent will be estavlis?e¢: by which the eonsttreErs will be placed in
the position of paying for mistake-=, of a private company. He pointed out that the
punt at lay City bars no funis for decommissioning the plant If It proves to be
fealty, nor has the Company prepared any plans for evacuation of citizens should
• there be an explosion or leakage. Ar. Dessestlhas also noted theta company spokes-.
man had indicated that C =' t L feels that the fact that the elderly and poor cannot
. ' pay the increased electric bids is merely a social problem and no responsibility
of the Company. indicating that they have no sympathy for the consumer, yet ttlty_
are asking the City to authorthe a rate increase to pay for their consit-uctten of
pie tis. '.
1 r. Paul T ,railki ll also urjeil the COotti 1 to reject the tate-increase
rcgr--esti primarily due to the excessive amovnt orf money spent on the construction
Of the nuclear ;bent. Ele pointed out the dangers of the nuclear plant and its --
effect on the environment, -
'. Joe Mollatodalso e raps • oil -nota to the Tate loci asa because of
the construction of the South Testas molnar plant,. as did lis. SabrI a `Ryan, Ks.
.Dsallette S. Chaff and Mr, Charles White:
_thryor .lis elfOre3Sed appreciation to all of the citizen's had spoken Tn
vt arzrl to the rate increase request= 4e then indicated that representatives of
t. would be altowed to Speak in rebuttal.
WOolssy ledicsted thst he disagreed with. the re arks made by most of
opporlas wee,had sus
to. resar o ,e, z-:t� s.....meee because of the expenditure
Of fps on the nuclear gleet- Mr. Woolsey stated that it is difficult to determine
whether or not earoeg decisions have been made by the Company but he wanted to point
out that the project is not over budget and it is not behind schedule. He also
emphasized the fact that price elasticity had been allowed by the Public Utility
that he ,could tike to address the remark madeby
omen ss
City Manager Townsend in regard to the Not water heater rates and the Implication—
that
mplicationthat this is a promotional method, eexlaining that these are :leans by which a com-
pany may realize greater revenue without increased costs to the consumer.
Mr. Woolsey also explained that the political expenses ircerred by C P a .L
are actually legal expenses but they afe not included in the rate increase requee .
ler. Woolsey then referred to lir. CasstevenS° remark pertaining to an appeal
by C P t Land agreed that no .matter what the City does, the Company will have to
file an appeal, because the Company has as its aim uniform rates throughout Its
service area. Mr. Woolsey stated that he SW no necessity for this hearing at all
because regardless of what the individual cities do, C P & L is obligated to
apq►ebl t4 the ?JC. He also alleged that intervention by the cities does not save
the rate payers Bey but,.fn fact, It costs the rate payers in that the Company
has to pass along the cost'3pent for their expense in participating In the public
.bras ,s Mr.. Woolsey also expressed the opinion that the 'Council discontinua the
practive of conducting hearings on rate cases and alive. the PUC to make the deete
stens ran rate sasses_ rte concluded his remarks by urging the Council to approvethe ,
40opecatise rate increase of 465.471,0M hold In abeyance any action on the rate
-- refine Is made by PITC; and reiterated that the..City should not be. in
pcI tion a -attempting to regulate electric rates. .
l`t
*Aber Nat informed lir. Woolsey that he is very unhappy with his
:_..n t foe �y��♦♦-C P € t ptahsi to appeal the case to
t rarnarllts.. �lF iLLMr�.jF. �` � that__P- .. ...... _.__,.
tit► Matter what action the Council takes. Mr. Diaz also que Honed the exper-
ttse of fthc sere ars'+sf .tire Public Utt'fity tommisslon.
lire Macy explained that even though the City has a right to exercise
their jurisdiction by beetles rate cases, w1ee C P 3 L appeals the decision of the
City Council, It is as if the Council. had not acted. He then provided background
vah-i .ga. : y n r.w.5 t#.� say✓-, ''11 -:i:.
t o of the isubl Ec titY l i tY Cemelsalon, . edlceting that
pia .tla tAereimi— ' li'fte±'eb to ap-pmve the rate- lacreale ar: in.t.
iiay r :;tames polmtexl out to Mr. Waoisey that be and the Council feel retpon-
slhio to coodUct Public hearings bees .t they are certainly concerned *bout rates
charged the ci hens, as well as a future source of energy. Mayor Jones stated
that be is concerned with the degree with :which the Council can evaluate the effF-
eirries,
City Manager Townsend stated that he felt that it is unfortunate that Mr.
Woolsey has decided to close the rate hearing with the statement that C P S t ►iiia
appeal no matter what the Ancil dues and expressed concern because the City Is.
alloyed to conduct public hearings according to State statutes end he did not think
the 'Council rants to rel'erssiuish that right to detcrllne the amount of rate increases.
Mr. Townsend also pointed out that the only tiring this Council is responsible for
are the rates set for this City. not far the entire C P 8 I. systew.. Pm assured
the Council that there is nothing wrong with this City having different rates than
other cities in the system and contended that because of this, It was certainly
worthwhile for the Council to conduct the public hearing.
Mr. 'Woolsey disagreed with iaayor Jones and City Manager Townsend that the
City should have:.origlaal jurisdiction in rate cases.
Mayor Janes then recognized one more citizen who wished to speak in regard
to this matter.
Mr. Maui Vaiquez, Jr. , 4425 Moldy. presented a petition signed by a large
number of citizens expressing apposition to the rate increase.
Motion by Sample that the herring beclosed, seconded by Fat and passed
unanimously. _
Council Member best statedthat singe it - appears that C P if t. Hili appeal
Y deolslee the C+at, dl makes. he felt that the Council- should approve the rate: :
Increase tecoseamded by their consultant, Touche Moss and [awing. Council Member
Meat then roved that the City grant a rate increase Of -$53,248,000. The motion was
seconded by £oi'aei 1 ►'ewer ZersicY.
_ me. Yarrsser eoefirmed the fat that Touche Moss reenmw flawA the filuto of .
153 34. -OU, but tM c- ouotins att .rrne'r, for_ r*ssteiens, rsS, acndsd the comPtom1 e
1
3y ti. Hose -101M;
; .
guile of: $65,A7t.400_
City es Townsend reminded the Council that the Executive Cw+,nai ttsa of
the coopftattes cities had recoomended the approval of the $6S,471,O0O figure and
point;O cut .thit other cities in the C P s i system will look to this City for
leadership in `dais. matter- He indica:_ed that the PUC had not heard the matter of
the revenue requirements of the company and expressed the opinion that if the City
PITC will determine that an even higher rate increase would be in. order.
Mr. Casstevens agreed with the City r4anager's statement, because he dnes
not feet that the PVC is bound by the $65,471,0O0 figure.
Or. Best reiterated that the Council had employed Touche Ross as—.netts
and he felt that their recommendation should be adopted.
Mr. Rick Mertz explained to the Council that the executive committee for
the participating cities had debated for a long time as to whether or not they
should approve the compromise figure or the figure recommended by Touche Ross and
had finally reached the conclusion that the higher figure should be approved
because it would seem to be a more reasonable amount in the event the Company
appeals_ to the PVC. lir. -Mertz also informed the Council that the staff recommends
approval of the same rate Structure as the company, except for the clause on price
elasticity_
- � x-meager.To nscnd_noted that Mr, Woolsey has implied that any deci-
. sion Wade by the Council is oeaoingless, but that is not the opinion of the stbff,
beciuse,they-feel that the law allows the City to conduct hearings and approve rate
ineyeases_aed this City should have that option.
Mr. Cassteverss stated that -he did net feel that there is very much differ -
eine betWren the compromise figure and the figure recommended ay. Touche Ross,.. and:.
0ey are just mikinq an attempt to maximize the effect of the decision. -
Counell Member Unity then asked Hr. Woolsey If C P 6 L will Stay with
the rata titaign, _a4 Ilr. Woolsey stated that they will.
Council Member Zarsi'y then withdrew his second to Council Member Best's
and11404 t& fie ae rer de:M, by Tomlin in Rssa.
City Maria;tasr Towesond ir;uirad of Mr. Woolsey why he feels the Company
faml:l •ppittl the Cr. roll,'. 4::r14ien if €o. 4POtovo the '�G .471,tup 02,)„_, land
rate disigm, indiuttins thet he could not watieratan4 1:hsa pecmssity for
"%Audi. a- simattom4
Mr. VerAsey reiterated that the Company nuk appeal to. P1 tab-
.
tish the same rate Company wide dbecause they want the pried elasticity.clanse
included in the rate fewest.
CitY,Manager itu74ead requested met Mr_ woolsey provide any reference to
the State law that stipulates that the rates charged by the Company must be the
, same all over their service area.
Mr- Woolsey admitted that there is ao section of ti:e law that specifically
states this, but stated that it is the Company's goal to have the same rates all
over their service area.
Mayor jones requested that Mr. Mertz explain the impact of the CounciT's
decision on the rate increase.
Mr, Mertz replied that the executive committee will recommend to all cities
involved that the ordinance referred to be adopted as presented to this Council
with the further stipulation that in the rate desinn, there should be an effort to
reduce the promotional aspect pertaining to hot water heaters.
tiayot Pro Tem Sample summarized the matter by reminding the Council that
the City's consultant, Touche Ross, has recommended the lower figure, but their
legal coonsel.,Mr,Casstovens, has recommended the $65,471,00 figure. he
expressed,--#ie-4-inion that the PIM would b ard pressed to Increase the figure
iIc the-'COMPanY--g-i§iiidrupron and he feels that theCeunCI1 should approve
the toMprOMile figart. -
:410.ttony Sam'ple that the City -accept the stipulated settlement of
465„.474Altil and that the proposed -ordinance be adopted. - The motion was seconded
rife reirion t -Mt Ike fart -AEA Lite 'ttate of Texas
luiswba-sttuation if the Pubik Utility Commission disagrees with their own
.staftle-reb5mmendatfon and increases the rates after an appeal is filed.
Mertz'-inforteeid the Council that the Company can put these rates into
affect:on fOrnary It, MO, regardtesa of Wither 01 of the cities have agreed
to this or not,
- - - - - - --- -
City Manager Townsend egla$41-ed that( the Council approves the rate
request for the compromise amount, the next procedure would be to approve an
likatfos980
ordinance including a proposed ate schedule and asked llr. Eseyr n_ the_cArv:.
Could expect such a schedule.
Mr. Vaolley replied that th s would be available in approximately 10 days.
City Secretary Reed pointed cut that there was a previous motion before
the Council which was grade by Council Mapper Best. -
- Mayor Jones declared that tura rotioo had died for lack of a second, since
zarsiti. had wernorawn iris sec•,;d to the motion.
City manager Townsend onQuired of Mayor Pro Tern Sample intended to include
ie -his motion the stipulation that sn the_ rate design the Company should begin
phasing oast the special rate for tot water heating, and that if the commercial
rates are less than Chose for tnunici,.al"at;es, the City should be allowed to use
those rates. Mr_ Sample indicated that he would include this in his motion.
Mayor Jones -called for the vote on the motion and it passed by the following
vote: Jones, Sample, Diaz. Dunphy-, Turner and Zarsky vo. iog "Aye"a. Best. voting "Nay."
Mayor Jones called for cants by the Council on current concerns.
Council Member Best reminded City lianager Townsend that it was his under-
standing that the City would submit plans for the ramp et the Airport to FAA on
January iii.
_.-C ty !tanager Townsend informed Dr. Best that the staff had been advised that
by end of this week, revised -plans an the ramp will be presented to the City
and aisss stated that the staff has received the plans for the parking riot.
0Ontil Member Zarsky suggested that the Council consider passage of e
r-.so1ntlOn encouraging federal agencies to continue and improve existing reasonable
11 itlaiit aa10#0ge t programs,-•:n}adiray barrier isia,tds, pertiCoiarty sincethi
hectic in$urance rates. city !tanager Townsend stated that the staff will prepare
reaotLfots or heli :. week..
Secretar'y.;Jiead Informed the Council that he bad reoelved a 'letter fro
#h T ;rreraa requesting permission to make a presentation to the Coupon
in repyrd io !tis request for a pornoit fttr his property located on Del Qso Road. The.
lit a.
preseetatiOn b _. - - -- - ---983� �. � • y Dr. }Aarrera on January 16, 1, for iD . _ minutaa
There he/ogres further business to come before the Council, on motion by
Saepie, Seconded by Diaz and passed uaani as:siy. the 490ar cauncii M -;sting „as
iadjeurned at 7:55 atonuAry 9, 1550-