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;
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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
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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,
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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".
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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".
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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.