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HomeMy WebLinkAboutMinutes City Council - 01/04/1961• PRESENT: Mayor Ellroy King Commissioners: Dr. James L. Barnard Mrs. Ray Airheart Joseph B. Dunn Patrick J. Dunne R. A. Humble Gabe Lozano, Sr. REGULAR COUNCIL MEETING January 4, 1961 2:00 p.m. City Manager Herbert W. Whitney City Attorney I. M. Singer City Secretary T. Ray Kring Mayor Kilroy King called the meeting to order. The Invocation was given by Reverend Mark Williams, of St. John's Methodist Church. City Secretary T. Ray Kring called the roll of those in attendance. Motion by Pat Dunne, seconded by Humble and passed that the minutes of the regular meeting of December 28, 1960, be approved. Mayor King announced the opening of bids. Bida were opened and read on 12,000 Heavy -Duty Industrial Type Flash- light Batteries from the following: Alamo Iron Works; Del Mar Tackle; Empire Building & Marine Co.; L. K. Sunderland & Son; Modern Electronics; Southwestern Drug Co.; Superior Iron Works; Tropical Supply Co.; Union Carbide; Gulf Hardware & Supply Co.; Norveil-Wilder; SAMSCO. Motion by Barnard, seconded by Pat Dunne and passed that the foregoing bids be tabled for 48 hours as required by the City Charter, and referred,to the City Manager for tabulation and recommendation. The bid of Walker Process Equipment Corp., the only bid received on a Gas Lifter Digester Stirring Mechanism, was opened and read. Motion by Humble, seconded by Pat Dunne and passed that the foregoing bid be tabled for 48 hours as required by the City Charter, and referrgd to the City Manager for tabulation and recommendation. Mayor King announced the Council would hear the City Manager's Reports. Motion by Barnard, seconded by Pat Dunne and passed that the City Mana- ger's recommendations and requests be approved and granted as follows: a. That the opening of bids on Fire Hose be deferred for one week till January 11, 1961, at the request of the bidders, due to the holidays, to allow the bidders more time to submit samples; • Regular Council Meeting January 4, 1961 Page 2 b. That the Federal Aviation Agency Revised Grant Offer, increasing federal participation from $136,000 to $158,500 in connection with the bids re- ceived for the construction of Aprons, Taxiways and Roads at the Corpus Christi International Airport, be accepted; c. That the contract on the construction of Aprons, Taxiways and Roads at Corpus Christi International Airport be awarded to Heldenfels Brothers, the low bidder, as recommended by Reagan & McCaughan, consulting engineers, and concurred in by Federal Aviation Agency, in the amount of $345,553.85, of which amount $6$,463.50 is to be paid by the City and $280,890.35 to be paid by Federal Avia- tidn Agency and City; d. That the plans and specifications for construction of a Swimming Pool for Collier Park be approved, and authority to advertise for bids to be re- ceived on January 18, 1961, be granted; e. That the plans and specifications for Rehabilitation of Railroad Tracks, Unit XI, Tule Lake Bridge Project, as recommended by Harrington & Cortelyou, consulting engineers, be approved, and authority to advertise for bids to be re- ceived on January 18, 1961, be granted; f. That a total of $1,358.29 be appropriated for 3 items in connection with Railroad Relocation Projects, of which $672.85 is to augment funds previously appropriated to cover Estimate #1 of Missouri Pacific Railroad Co. for construction of a temporary trestle; $600 is for Buildings, Joint Yard Project, for Warehouse Rental Ennis Joslin; and $85.44 for Engineering by City Forces; g. That authority to advertise for bids to be received on January 18, 1961, on an estimated 3 -months' supply of Fuel Requirements consisting of Regular Gasoline, Premium Gasoline, Kerosene, and Diesel Fuel, be granted. Mayor King announced that before the reading of the ordinances, and with particular reference to the second reading of an ordinance regarding the City's Natural Gas Supply, he would like to read certain correspondence, copies of which would be available from the City Manager for distribution to the Press and to in- dividual citizens and interested parties. He reviewed the background of the matter as follows: On October 12, 1960, the City requested bid invitations for the Gas Supply Contract; the specifications were approved by the Gas Advisory Committee, Regular Connell Meeting January 4, 1961 Page 3 composed of Frank P. Peterson, Richard Davy, Paul Haas, John Hawn and Guy Warren, and by the City's Attorneys and the Council; by November 3, 1960, at the request of bidders, 8 addenda had been issued; that on more than one occasion, statements here eade by the Council that no oral interpretation of the bid invitation would be made; that in making his recommendation, the City Manager had the assistance of fir:.Charles I. Francis, Special Attorney, and Butler, Miller & Lents, Oil & Gas Consultants; that the consulting engineers made a report to the City Manager on December 23, in writing; that at the regular meeting on December 28, the City Mana- ger recommended that all 20 -year proposals be rejected, and the 5 -year contract submitted by Houston Natural Gas Corp. be awarded; that the Council has never nego- tiated with a bidder after opening a sealed bid and has no intention of doing so now; that if there was any doubt as to the intent of the bid after it vas opened, the Council has rejected all bids and readvertised, since the City always reserves the right to reject all bids; that at last Wednesday's meeting, one bidder sub- m3:tted a'letter to the City's consultants, in which he allaged certain erroneous conclusions concerning the bid of Coastal States Gas Producing Co. with particu- lar reference to the dedicated reserves for a 20 -year contract and the quantity ' or volume of gas per day his company is permitted to transport through the Tenn- essee Gas Transmission Co. lines. In his review, Mayor King read a letter dated January 3, 1961, addressed to Butler, Miller & Lents, signed by Charles I. Francis, Special Counsel for the City, confirming in writing his previous oral opinion as to the term of the Superior -Coastal States Gas Purchase Co ►tract, and as to the quantity and volume of gas that Tennessee Gas Transmission Co. is obligated to transport per day for Coastal States, and particularly calling attention to the fact that the letter in whish it was stipulated that Tennessee Gas agreed to transport the volume requested and required by the City under a transportation agreement to be negotiated with Coastal States was not. and -ins not an enforceable agreement, whereas the agreement of December 19, 1961, obligating Tennessee to transport 30,000,000 cu.ft. of gas per day is an enforceable agreement, Mayor King read a letter dated January 3, 1961, addressed to the City Manager, and signed by M. R. Lents of Butler, Miller & Lents, which stated that in the light of the review of all documents submitted by Coastal States in connection with its bid by Mr. Francis and by his'company, they have no reason to change their • Regular Council Meeting January 4, 1961 Page 4 recommendation given in their letter of December 23. Mayor King read the caption of the proposed ordinance in question, and stated that it had been read and passed on its first reading at last week's Council meeting, and that it would appear that the City's Consultants had answered in writing the points raised by Coastal States, but that if representatives of Coastal States desired to comment at this time, they would be heard, but that all questions and remarks would have to be pertinent to the bid proposal. Mr. Raybourne Thompson, of Vinson, Elkins, Weems & Searle, Houston, attorney for Butler, Miller & Lents, identified himself and stated that he wished to make his presence known and his reason for being ptesent was because Mr. Wyatt had threatened his clients with litigation if they did not change their opinion against certain matters, and he did not want Mr. Lewright, attorney for Mr. Wyatt, to try the lawsuit here; that he was perfectly willing for his client to be inter- rogated about matters, apparently in disagreement, of which Mr. Lewright or Mr. Lents have written to the Council, but unwilling about statements made by Mr. Wyatt or any'Wady associated with him. Mr. Irewright stated that his client did not believe the Council had sufficient information on which to reach an administrative decision, and made the following statement for the benefit of the Council for the record: ".This Council is not required, upon information being furnished, to go ahead and do what it proposes to do, still not too late. As I warned you ladies and gentlemen once before, and I warned you truthfully, that the public jerked you up before, this time I think the Courts will." Mr. Lewright questioned Mr. Lents at length as to the dates certain documents and supporting data was received by him in regard to the Superior contract, the dedication of gas reserves, the Midway System, the transportation agreement and supplemental agreement with Tennessee Gas, and the manner in which they evaluated them and arrived at their recommendation to reject the 20 -year bids and award a 5 -year contract. Mr. Lewright introduced as evidence, and read an Affidavit of Jesse E. Hendricks regarding his dealings in the matter; an Affidavit of Glenn Roweth, Reserve Geologist for Coastal States, with reference to the gas reserves owned and controlled by his company; a letter dated December 16 addressed to Coastal States, signed by Walter Fawcett, Director of Gas Contracts, • Regular Council Meeting January 4, 1961 Page 5 Tennessee Gas Transmission Co., regarding the transporting of a volume of gas; and presented a report dated December 5, 1960, to Coastal States, signed by H. J. Gruy, President of H. J. Gruy & Associates, containing Summary Projection of Estimated Proved Gross Reserves, as of January 1, 1960, Superior Oil Co. Gas Units dedicated to Coastal States. Mr. Lents, in answering Mr, Lewright's questions, stated that before re- ceiving a copy of the Superior contract and the Tennessee Gas agreement, it was necessary to evaluate the reserves; that after receiving copy of the Superior contract and finding it had only a remaining term of 13i years, and after receiving copy of the Tennessee agreement a month late, agreeing to transport only 30,000,000 cu.ft. of gas per day, he saw no need to examine the reserves of the Midway System and assumed them to be correct; that the letter in question regarding the Tennessee supplemental agreement which was received a month after the bid was made, although dated December 16, was not executed until December 19; that in general he did not think the City should enter into a 20 -year contract at this time which is half at cost plus, since cost plus agreements can be made at most any time; that the final decision as to recommendation was made in conference of himself, Mr. Francis and Mr. Armitage; and requested that it be recorded that he had not seen the letter dated December 16, signed by Walter Fawcett of Tennessee Gas until it was present- ed at this meeting by Mr. Lewright. •In answer to Mr. Lewright's questions to him with regard to the two items in question, Mr. Francis stated that it was his interpretation that the Superior contract would have only 13i years to run,and that all of the gas reserves that were under the leases up to 200 -billion cu.ft. were committed to the Buyer, and that there was nothing in the file shown him upon which he based his opinion, to the contrary. Commissioner Barnard asked both Mr. Lents and Mr. Francis if anything that occurred today had caused either of them to change their original opinion. Mr. Lents and Mr. Francis each answered, "No, Sir." Jack Pettigo, John 0. Howard, Setino Moreno, Bob Belhasher spoke in favor of the 20 -year contract to Coastal States rather than the 5 -year contract to Houston Natural. Regular Council Meeting .January 4, 1961 Page 6 Second reading of an ordinance passed on first reading at the regular meeting of December 28, 1960: REJECTING ALL BIDS AND PROPOSED CONTRACTS FOR A GAS SUPPLY FOR A TERM OF TWENTY (20) YEARS: ACCEPTING A CONTRACT BID BY HOUSTON NATURAL GAS CORPORATION TO SUPPLY THE NATURAL GAS REQUIREMENTS OF THE CITY OF CORPUS CHRISTI, TEXAS, AND ITS GAS DISTRIBUTION SYSTEM FOR A TERM OF FIVE (5) YEARS; AND AUTHORIZING AND DIRECTING Th CITY MANAGER AND THE DIRECTOR OF FINANCE TO EXECUTE SUCH CONTRACT FOR AND ON BEHALF OF THE CITY WITH HOUSTON NATURAL GAS CORPORATION FOR A TERM OF FIVE (5) YEARS, A COPY OF WHICH CONTRACT IS ATTACHED TO THIS ORDINANCE AND MADE A PART .HEREOF. The foregoing ordinance was read for the second time and passed to its third reading by the following vote: All Council members present and voting "Aye". Mayor King announced that in view of the open threat of Court Action made during this meeting, and in view of the fact that the present Gas Supply contract of the City expires March 1, 1961, and that the best interests of the City require immediate action to secure an adequate supply of gas after that date, and in order not to take a chance on Jeopardizing a very favorable contract price -vise by a Court Action, it is deemed that a public emergency and imperative necessity exists for the suspension of the Charter rule or requirement that no ordinance or resolution shall be passed finally on the date it is introduced, and that such ordinance or resolution shall be read at three meetings of the City Council, and I,therefore, request that the Council suspend said Charter rule or requirement and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. ORDINANCE N0. 6029 REJECTING ALL BIDS AND PROPOSED CONTRACTS FOR A GAS SUPPLY FOR A TERM OF TWENTY (20) YEARS; ACCEPTING A CONTRACT BID BY HOUSTON NATURAL GAS CORPORATION TO SUPPLY THE NATURAL GAS REQUIREMENTS OF THE CITY OF CORPUS CHRISTI, TEXAS, AND ITS GAS DISTRIBUTION SYSTEM FOR A TERM OF FIVE (5) YEARS; AND AUTHORIZING AND DIRECTING THE CITY MANAGER AND THE DIRECTOR OF FINANCE TO EXECUTE SUCH CONTRACT FOR AND ON BEHALF OF THE CITY WITH HOUSTON NATURAL GAS CORPORATION FOR A TERM OF FIVE (5) YEARS, A COPY OF WHICH CONTRACT IS ATTACHED TO THIS ORDINANCE AND MADE A PART HEREOF; AND DECLARING AN EMERGENCY. The Charter rule vas suspended by the following vote: A11 Council mem- bers present and voting "Aye". The foregoing ordinance vas passed by the following vote: All Council members present and voting "Aye". • Regular Council Meeting January 4, 1961 Page 7 ORDINANCE NO. 6026 ACCEPTING A GRANT OFFER FROM THE FEDERAL AVIATION AGENCY AND AUTHORIZING THE EXECU- TION OF THE GRANT OFFER AND AGREEMENT BY THE CITY MANAGER, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, FOR FEDERAL AID IN THE DEVELOPMENT OF THE CORPUS CHRISTI INTERNATIONAL AIRPORT; AND DECLARING AN EMERGENCY. The Charter rule'was suspended by the following vote: All Council mem- bers present and voting "Aye". The foregoing ordinance was passed by the Following vote: All Council members present and. voting "Aye". ORDINANCE N0. 6027 AUTHORIZING AND DIRECTING THE C1TY MANAGER, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRI ri, TO EXECUTE A CONTRACT WtTH HEILDENFELS BROTHERS, CONTRACTORS, FOR CONSTRUC- T/ON OF APRONS, TAXIWAYS AND ROADS AT CORPUS CHRISTI INTERNATIONAL AIRPORT, PROJECT N0. 245-56-8.1F; APPROPRIATING FROM N0. 245 AIRPORT BOND FUND THE SUM OF $375,265.00 0? WHICH $345,553.85 IS FOR THE CONSTRUCTION CONTRACT; $11,230.50 IS FOR ENGINEERING AND DESSIGN, $6,047.19 IS FOR ENGINEERING SUPERVISION, $12,000.00 IS FOR DETAILED IN- SPECTION AND LABORATORY CONTROL; $33.46 IS FOR LEGAL ADVERTISING FOR BIDS AND $400.00 IS FOR ADMINISTRATION BY CITY; AND DECLARING AN EMERGENCY. The Charter rule was suspended by the following vote: All Council mem- bers present and voting "Aye". The foregoing ordinance was passed by the following vote: Ail Council members present and voting "Aye". ORDINANCE N0. 6028 APPROPRIATING OUT OF N0. 230 BRIDGE BOND FUND THE SUM OF $1,358.29 OF WHICH AMOUNT $672.85 IS TO AUGMENT FUNDS PREVIOUSLY APPROPRIATED BY ORDINANCE N0. 5639, AND AS REQUIRED TO PAY ESTIMATE NO. 1 PREPARED BY HARRINGTON AND CORTELYOU IN THE AMOUNT OF $4,872.85 FOR WORK PERFORMED BY MISSOURI PACIFIC RAILROAD, THEIR INVOICE NO. 71128, APPLICABLE TO PROJECT' NO. 230-55-8.6-1; $600.00 IS FOR MONTHLY RENTAL FEE PAYABLE TO ENNIS JOSLIN FOR RENTAL OF A TEMPORARY WAREHOUSE FOR ACME FAS1 FREIGHT LINE, AUGMENTING RENTAL FUNDS IN THE. AMOUNT OF $1200.00 PREVIOUSLY APPROPRIATED FOR MEMBER AND DECEMBER RENT: $85.44 IS FOR ADDITIONAL ENGINEERING EXPENSE BY CITY FORCES, THE LATTER TWO ITEMS BEING APPLICABLE TO PROJECT N0. 230-55-8.8-4; AND DECLARING AN EMERGENCY. The Charter rule was suspended by the following vote: All Council mem- bers present and voting "Aye". The foregoing ordinance was passed by the following vote: All Council members present and voting "Aye". • Regular Council Meeting January 4, 1961 Forge 8 Mayor King announced the Council would hold the public hearing scheduled for 3:00 o'clock p.m., on the Agnes -Laredo Street Improvement Assessments. Jack Graham, Director of Public Works, presented the plans and prelimin- ary assessment roll; described the nature, extent and specifications of the pro- posed improvements on the continuation of Laredo Street from Staples Street to Tancahua Street, and Agnes Street from Staples Street to Carencahua Street; the cost of construction; the amount to be paid by the City and the amount, before final adjustment, to be assessed against the abutting property owners, and the improvements to be constructed by the State Highway Department at no cost to the City or the property owners; the manner in which such pro rata ahare was computed; and stated that prior to the street being constructed, utility rehabilitation at no expense to the owners is being carried out to provide better and more trouble free service to the neighborhood. Harold Carr testified as to his background experience which he felt qualified him as a real estate appraiser for all types of properties; that he had personally viewed the plans And understood the extent and specifications of the pro- posed improvements; that he had personally vieved.the asaessment roll and each of the properties to be assessed; described the general condition of the properties; and stated that in his opinion, in each case, the property will be enhanced in value at least to the extent of the assessment and explained some of the criterion upon which he based his opinion. Each of the abutting property owners, or their agent, was given an opportunity to speak with regard to the assessment and improvements. The following persons appeared, and Mr. Graham answered each of their questions by referring to the pians; Geo. J. Stein, Item 2, read a letter to the effect that the Governmental Agency now leasing his property considers the property unsatisfactory for renewal of lease due to the run-down condition of surrounding area, and stated that he is very anxious for the improvements to be made, and requested a 25 -foot driveway at lease; Representative for John H., Herman W. and Arno W. Anhmanu Estate, Item 3, asked about the width of sidewalk and the parkway between the sidewalk and the curb; Herman W. and Arno W. Behmann, Itm 16, asked about the width of side- walk, whether or not there was to be a parkway between sidewalk and curb in front of this property, and requested that the mathematics of their assessment be checked for error in addition; Regular Council Meeting January 4, 1961 Page 9 Mrs. Haney, for G. N. Jones Estate, Item 18, asked if the amount pub- lished in the paper was the full amount of the assessment; Ella E. Clark, Item 37, asked about the canner of payment of the assess- ment; Charles Deloael, real estate appraiser, and Kenneth R. Farrah, owner, Item 39, objected to any assessment for this property, on the basis that there would be no benefit to his property; Roy 0. Crocker, Item 40, objected to any assessment for his property on the basis that the improvement is for the benefit of the City as a whole, and does not benefit him as a resident, and that since the City will very likely take his property for further development of street construction within the neat five years, it will be dead real estate as far as saleability; that when the house was constructed the City was granted a pedestrian walkway, and with a 4-#t. walkway, cuts the property down to only 46 -feet, and asked if the pedestrian right-of-way or walkway could be given back to the property owners as the City would have no need of it. The Council instructed the Director of Public Works to investigate this matter of the pedestrian walkway, and report back to the Council with recom- mendation; B. J. Ricks, Item 42, asked about the width of sidewalk in front of his PropeTtY, R. L. and M. T. Purinton, Item 46, stated that there was a hill in front Obis property which would have to be leveled for a sidewalk and questioned as to how close it would cow to his house proper, and whether or not the City would have to build a retaining wall. No one else present appeared to be heard. Motion by Joe Dunn, seconded by Airheart and passed that the hearing be closed, and that the City Staff be authorized to prepare the final assessment roll and the ordinance closing the hearing. Mayor King invited anyone.in the audience with petitions or information for the Council to come forward and be heard. Motion by Barnard, seconded by Airheart and passed that the petition of 102 signatures, requesting the Annexation of certain Flour Bluff Area, received by the City Secretary, be received and filed. There being no further business to come before the Council, the meeting was adjourned.