HomeMy WebLinkAboutMinutes - City Council - Special - 12/20/1979DEC 2 4 1975
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CITY OF LUBBOCK
SPECIAL CITY COUNCIL MEETING
DECEMBER 20, 1979
12:45 P.M.
A Special Meeting was held by the City Council on Thursday, December 20, 1979
at 12:45 P.M. in the Council Chambers, Second Floor, City Hall.
Those present:
Mayor Dirk West, Mayor Pro Tem Alan Henry, Councilwoman Carolyn Jordan,
Councilman Bill McAlister, City Manager Larry Cunningham, City Attorney John
C. Ross, Jr. and City Secretary -Treasurer Evelyn Gaffga.
Absent:
Councilman M. J. Aderton
79-3Ek813-1386 Consider Rate Application of South Plains Electric Cooperative, Inc., and
( 1) procedures to follow in reference thereto.
Mayor Pro Tem Alan HenryPresiding:
Mr. Jim Brewster, Trial Attorney for the City, appeared and apprised the
Council of the application filed on November 23, 1979 by South Plains, said
application setting forth the schedule of rates.
Mr. Brewster indicated that under Art. 1446c, V.A.T.S., the governing
body of the Municipality has not surrendered its ratemaking authority and
therefore retains exclusive jurisdiction as to such electric rates. He
indicated the application pertains to the area adjacent to the corporate
boundaries of the City.
Mr. Brewster stated that the hearing before the PUC on the pending rate
increase is scheduled for January 30, 1980, and it is his recommendation
that the Council pass a resolution suspending operation of the proposed
rate schedule for a period of 120 days beyond the date when the rates would
go into effect, if approved.
79-389813-1387 Resolution No. 372
( 2)
Consider resolution suspendinS operation of the proposed rate schedule
contained in said rate application by South Plains Electric Cooperative,
Inc. for a_ period not to exceed 120 days beyond the date of which the
schedule of rates would otherwise .&o_into effect.
JPB:pg
RESOLUTION NO. 372
A RESOLUTION OF THE CITY OF LUBBOCK, TEXAS, SUSPENDING THE OPERATION OF
PROPOSED RATE SCHEDULES FILED BY SOUTH PLAINS ELECTRIC COOPERATIVE, INC.,
FOR A PERIOD OF 120 DAYS BEYOND THE DATE ON WHICH SUCH SCHEDULES WOULD
OTHERWISE GO INTO EFFECT.
WHEREAS, the South Plains Electric Cooperative, Inc., did on the 23rd
day of November, 1979, file a schedule of rates for electric utility service
within the City of Lubbock, Texas, to become effective January 1, 1980;
and
WHEREAS, under the provisions of Vernon's Ann.Civ.St., art. 1446c,
the City Council as the governing body of the City of Lubbock, Texas, is
the Regulatory Authority having primary jurisdiction as to electric utility
rates within the corporate limits of the City of Lubbock, Texas; and,
WHEREAS, after hearing all presentations made in open meeting as to
the subject matter of this Resolution, it is the opinion of the City Council
of the City of Lubbock, Texas, as the Regulatory Authority, that such schedules
of rates should be suspended for a period of 120 days from January 1, 1980,
for further study, investigation, presentation of evidence, and public
hearing; and,
WHEREAS, a copy of this Resolution and the considered reasons for
suspension of such schedules of rates have been provided to South Plains
04C 2 � 1979
Electric Cooperative, Inc., prior to the consideration of this Resolution
by the City Council of the City of Lubbock, Texas; NOW THEREFORE, 11
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS:
Pursuant to Section 43(d) of the Public Utilities Regulatory
Act of the State of Texas, the operation of the proposed rate schedules
filed with the City of Lubbock on the 23rd day of November, 1979,
by the South Plains Electric Cooperative, Inc., is hereby suspended
for a period of 120 days from the lst day of January, 1980, for further
study, investigation, presentation of evidence, and public hearing.
ADOPTED by the City Council of the City of Lubbock, Texas, this
the 20th day of December, 1979.
/s/ Alan Henry
ALAN HENRY, MAYOR PRO TEM
ATTEST:
/s/ Evelyn Gaffga
Evelyn Gaffga, City Secretary -Treasurer
APPROVED AS TO FORM:
/s/ James P. Brewster
James P. Brewster, Civil Trial Attorney
Appearing: Mr. Dale Johnson, Attorney
on behalf of South Plains Cooperative, Inc.
Mr. Johnson appeared and filed with the Council and City Secretary
a letter expressing objection to the nonwaiver and disclaimer clauses,
and other provisions, in the letter of Notice from Mayor Pro Tem Henry
with respect to this Special Meeting, the referenced nonwaiver and
disclaimer appearing in the last paragraph in Mayor Pro Tem's letter;
furthermore, South Plains will not be bound by any provisions stated
in the last two paragraphs.
As stated in the letter from Mr. W. G. Newton, General Manager for
South Plains, they would be most happy to confer with the Council
as to a possible franchise with respect to the newly annexed areas,
and would cooperate with the City staff in any way needed.
Mr. Brewster, in response to Mr. Johnson's remarks, apprised the Council
that the purpose of South Plains' objection was a legal question at
issue, i.e., South Plains would "like their cake and eat it too";
that the purpose of the waiver clause was the Council sits as the
regulatory authority, and their other interests as a corporate entity
are not involved. Additionally, with respect to the franchise, the
Charter specifically states that the Council does not approach them,
but they approach the Council, if interested in a franchise.
Following this discussion, the motion was made by Councilwoman Jordan,
seconded by Councilman McAlister to pass said resolution, suspending
the operation of the proposed rate schedule contained in said rate
application by South Plains Electric Cooperative, Inc., for a period
not to exceed 120 days beyond the date of which the schedule of rate
would otherwise go into effect. Motion carried: Mayor Pro Tem Alan
Henry, Councilwoman Jordan, Councilman McAlister voting Yea; none
voting Nay, Mayor West abstaining; Councilman Aderton absent.
79-384814-1388 Resolution No. 373
( 3)
r resolution setting date and time for commencement of hearings
said rate application by the South Plains Electric Cooperative, Inc.
JPB:bs
RESOLUTION NO. 373
A RESOLUTION OF THE CITY OF LUBBOCK, TEXAS, SETTING PUBLIC HEARING
UPON RATE APPLICATION FILED BY SOUTH PLAINS ELECTRIC COOPERATIVE,
INC.
WHEREAS the South Plains Electric Cooperative, Inc., filed its
Rate Application with the City of Lubbock, Texas, on the 23rd day
of November, 1979; and,
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[WHEREAS the City Council of the City of Lubbock as the Regulatory
Authority having exclusive original jurisdiction over utility rates
within the corporate limits of the City of Lubbock, Texas, under Vernon's
Ann.Civ.St., art. 1446c, has heretofore suspended the operation of
y,. such proposed rate schedules for a period of 120 days beyond the date
on which such schedules would otherwise go into effect; and,
WHEREAS, the City Council as the Regulatory Authority has determined
the propriety for the presentation of evidence at a public hearing
prior to determination as to the validity of such requested rate schedules;
NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS:
Pursuant to the provisions of Vernon's Ann.Civ.St., art. 1446c,
a public hearing upon the Rate Application filed by South Plains Electric
Cooperative, Inc., on the 23rd day of November, 1979, should be, and
is hereby set to commence in Council Chambers on the second floor
of the Municipal Building, in Lubbock, Lubbock County, Texas, at 2:00
o'clock P.M., on Thursday the 24th day of January, 1980, thereupon
and thereafter to be convened and continued for such hearing days
and periods as provide full opportunity for presentation of evidence
from all interested and affected persons; but in no event shall such
continuance extend the ultimate date of determination beyond that period
set by the Public Utility Regulatory Act of the State of Texas.
ADOPTED by the City Council of the City of Lubbock, this the 20th day
of December, 1979.
/s/ Alan Henry
ALAN HENRY, Mayor Pro Tem
ATTEST:
/s/ Evelyn Gaffga
Evelyn Gaf€ga, City Secretary -Treasurer
APPROVED AS TO FORM:
/s/ James P. Brewster
James P. Brewster, Civil Trial Attorney
Public hearings will need to be held on said application, and in accordance
with Art. 1446c, V.A.T.S., said hearings need to be held within 30 days
from the above action. In the event the parties involved are unable to
attend, the hearings may be continued to a later date.
The motion was made by Councilwoman Jordan, seconded by Councilman McAlister
to commence the public hearing on January 24, 1980 at 2:00 P.M. Motion
carried: Mayor Pro Tem Henry, Councilwoman Jordan, Councilman McAlister
voting Yea; none voting Nay; Mayor West abstaining; Councilman Aderton absent.
It was noted that this public hearing does not have to be advertised but
will be duly posted.
79-389815-1389 Ratify and confirm by minuted action the letter by Mayor Pro Tem dated
( 4) December 18, 1979, written in compliance with V.A.T.S., Arta 1446c, Sec. 43(d).
The referenced letter served Notice upon South Plain Electric Cooperative,
Inc. of the suspension order, said letter being hand -delivered to South Plains
and their counsel; it therefore becomes necessary to make this action official
by ratifying same.
Motion was made by Councilman McAlister, seconded by Councilwoman Jordan
to ratify and confirm the letter to South Plains dated December 18, 1979.
Motion carried: Mayor Pro Tem Henry, Councilwoman Jordan, Councilman McAlister
voting Yea; none voting Nay; Mayor West abstaining; Councilman Aderton absent.
79-30815-1390 Receive application and proposed Articles of Incor�orat_ion for establishment
( 5) of a housing finance corporation under provisions of House Bill 1876 (Texas).
At the last Work Session on December 12, 1979, the Council indicated the
preliminary documents could be implemented prior to the above piece of legislation
or Congressman Ullman's Bill 5741 becomes enacted. However, subsequent
to that meeting, it was called to the Council's attention that should these
documents not be on file with the Secretary of State (Austin) by December
31, 1979, this could easily disqualify the City of Lubbock area.
City Attorney John Ross presented the Application for Incorporation of the
D f C 2 0 1979
79-38k816-1391
( 6)
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Lubbock Housing Finance Corporation signed by six incorporators, to -wit:
M. B. Smith, Jr., Executive Sec. West Texas Homebuilders Associat
Mario G. Perez, a businessman
W. F. "Brownie" Brownless, Exec. Sec., Board of Realtors
Leota Alexander, an attorney
Bill McAlister, representing the Council
Alfred J. Caviel, a local businessman
Motion was made by Mayor Pro Tem Henry, seconded by Councilwoman Jordan
to accept the names of the incorporators, listed above. Motion carried:
Mayor West, Mayor Pro Tem Henry, Councilwoman Jordan and Councilman McAI
voting Yea; none voting Nay; Councilman Aderton absent.
Resolution No. 374
Consider Resolution authorizing incorporation of Lubbock Housing Finance
Corporation as a non-profit corporation under provisions of House Bill
No. 1876 (Texas) .
RESOLUTION NO. 374
APPROVING FORMATION OF LUBBOCK
HOUSING FINANCE CORPORATION
WHEREAS, an application in writing seeking the incorporation of a
housing finance corporation under the provisions of the "Texas Housing
Finance Corporation Act" has been filed with the governing body of
the City by at least three individuals, each of whom is a citizen of
the State of Texas, of the age of 18 years or more and residents of
the City; NOW THEREFORE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
Section 1. That, the governing body of the City has found and
determined, and hereby finds and determines, that it is wise, expedient,
necessary, or advisable that the corporation be formed.
Section 2. That, the governing body of the City hereby approves
the form of articles of incorporation proposed to be used in organizing
the corporation, a copy of which is attached hereto as "Exhibit A",
and hereby grants authority for the incorporation of the corporation.
Iter
Section 3. That it is hereby officially found and determined:
that a case of emergency or urgent public necessity exists which requires
the holding of the meeting at which this Resolution is adopted, such
emergency being that the adoption of this Resolution is necessary for
the incorporation of a housing finance corporation under the "Texas
Housing Finance Corporations Act"; and that the proceeds from the issuance
of such corporation's bonds are needed as soon as possible and without
delay for necessary and urgently needed residential housing for persons
of low and moderate income within the City; that said meeting was open
to the public as required by law; and that public notice of the time,
place, and purpose of said meeting was given as required by Vernon's
Ann.Civ.St. art. 6252-17, as amended.
Section 4. Ordinances and Resolutions in Conflict Repealed
All Ordinances and Resolutions and parts thereof in conflict herewith
are hereby expressly repealed insofar as they conflict herewith.
Section 5. Emergency. That this Resolution shall take effect
immediately from and after its adoption in accordance with the Charter
of the City of Lubbock and it is accordingly so resolved.
Passed this 20th day of December , 1979.
ATTEST:
/s/ Evelvn Gaffga
Evelyn Gaffga, City Secretary -Treasurer
APPROVED AS TO FORM:
/s/ Donald G. Vandiver
Donald G. Vandiver, Asst. City Attorney
/s/ Dirk West
DIRK WEST, MAYOR
DEG 2 . 1979
817
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APPLICATION FOR INCORPORATION
OF LUBBOCK HOUSING FINANCE CORPORATION
We, the undersigned, citizens of the State of Texas, of the age -of
18 years or more and residents of the City of Lubbock, Texas, hereby file with
the governing body of the City an application in writing seeking the incorporation
of a housing finance corporation under the provisions of the "Texas Housing
Finance Corporations Act". The form of articles of incorporation proposed to
be used in organizing the corporation are attached hereto as "Exhibit A".
SIGNED this the 20th- day of , 1979•
/s/M. B. Smith, Jr.
Applicant
s/Mario G. Perez
Applicant
/s/Alford J. Caviel
Applicant
THE STATE OF TEXAS
COUNTY OF LUBBOCK
/s/W. F. Brownlee _
Applicant
/s/Leota Alexander
Applicant
Is/Bill McAlister
Applicant
ARTICLES OF INCORPORATION
OF
LUBBOCK HOUSING FINANCE CORPORATION
WE THE UNDERSIGNED, natural persons of the age of eighteen (18) years or
more, citizens of the State of Texas and residents of the City of Lubbock, Texas
(the "City"), acting as incorporators of a public instrumentality and non-profit
corporation (the "Corporation") under the Texas Housing Finance Corporations
Act, having been granted authority by the governing body of the City as evidenced
by the resolution attached hereto as Exhibit "A", do hereby adopt the following
Articles of Incorporation for the Corporation:
ARTICLE ONE
The name of the Corporation is Lubbock Housing Finance Corporation.
ARTICLE TWO
The Corporation is a public instrumentality and non-profit corporation.
ARTICLE THREE
The period of duration of the Corporation is perpetual.
ARTICLE FOUR
The Corporation is organized exclusively for the purpose of benefiting
and accomplishing public purposes of, and on behalf of, the City pursuant to
the Texas Housing Finance Corporation Act, by financing the cost of residential
ownership and development that will provide decent, safe and sanitary housing
for residents of the City at prices they can afford. It has been determined
and declared by the Legislature of the State of Texas that such residential
ownership and development will (a) provide for and promote the public health,
safety, morals, and welfare; (b) relieve conditions of unemployment and encourage
the increase of industry and commercial activity and economic development so
as to reduce the evils attendant upon unemployment; (c) provide for efficient
and well -planned urban growth and development including the elimination and
prevention of potential urban blight and the proper coordination of industrial
facilities with public services, mass transportation and residential development;
(d) assist persons of low and moderate income in acquiring and owning decent,
safe and sanitary housing which they can afford; and (e) preserve and increase
ad valorem tax bases of local governmental units; and the foregoing have been
determined and declared by the Legislature of the State of Texas to lessen the
burden of government and to be public purposes and functions.
ARTICLE FIVE
The Corporation has no members.
ARTICLE SIX
These articles of incorporation may at any time and from time to time be
amended so as to make any changes therein and add any provisions thereto which
might have been included in the articles of incorporation in the first instance.
Any such amendment shall be effected in either of the following manners: (i)
DEC 2 4 1979
the members of the board of directors of the Corporation shall file with
the governing body of the City an application in writing seeking permissiift
to amend the articles of incorporation, specifying in such application th
amendment proposed to be made, such governing body shall consider such
application and, if it shall by appropriate resolution duly find and
determine that it is wise, expedient, necessary or advisable that the
proposed amendment be made and shall authorize the same to be made, and
shall approve the form of the proposed amendment, then the board of directo
of the Corporation may amend the articles of incorporation by adopting
such amendment at a meeting of the board of directors and delivering
articles of amendment to the Secretary of State, or (ii) the governing
body of the City may, at its sole discretion, and at any time, alter
or change the structure, organization, programs, or activities of the
Corporation (including the power to terminate the Corporation), subject I
to any limitation on the impairment of contracts entered into by the
Corporation, by adopting an amendment to the articles of incorporation
of the Corporation at a meeting of the governing body of the City and
delivering articles of amendment to the Secretary of State.
ARTICLE SEVEN
The street address of the initial registered office of the Corporat
is 916 Texas Ave.. P.O. Box 2000 -, Lubbock, Texas, 79457 , and the
name of its initial registered agent at such address is Bill -McAlister
ARTICLE EIGHT
The affairs of the Corporation shall be managed by a board of direr
which shall be composed in its entirety of persons appointed by the
governing body of the City. The number of directors constituting the
initial board of directors is 6 The names and addresses of the
persons who are to serve as the initial directors, and the dates of
expiration of their initial terms as directors, are as follows:
NAMES
M.B. Smith, Jr.
Mario G. Perez
W. F. Brownlee
Leota Alexander
Bill McAlister
Al Caviel
ADDRESSES
4910-39th, Lubbock, TX
1303-59th, Lubbock, TX
4520-8th, Lubbock, TX
2512 S1ide,Lubbock, TX
3707 68th, Lubbock, TX
2401 E. 28th, Lubbock,
DATE OF
EXPIRATION OF
TERM
79413 December 31, 1981
79412 December 31, 1983
79416 December 31, 1981
79407 December 31, 1985
79413 December 31, 1985
TX 79403 December 31, 1983
Each of the initial directors resides within the City. Each director,
including the initial directors, shall be eligible for reappointment.
Directors are removable by the governing body of the City, for cause
or at will, and must not be appointed for a term in excess of six (6)
years. Any vacancy occurring on the board of directors through death,
resignation, or otherwise, shall be filled by appointment by the gover
body of the City to hold office until the expiration of the term for
which the vacating director had been appointed.
ARTICLE NINE
The name and street address of each incorporator is:
NAME
Address
M. B. Smith, Jr.
4010-39th, Lubbock, Texas
Mario G. Perez
1303-59th, Lubbock, Texas
W. F. Brownlee
4520-8th, Lubbock, Texas
Leota Alexander
2512 Slide, Lubbock, Texas
Bill McAlister
07 68th Lubbock Texas
Lubbock,
Al Caviel
01 E. 2$th St.,
Each incorporator
resides within the City.
ARTICLE TEN
79413
79412
79416
79407
79413
Texas 79403
A resolution approving the form of these articles of incorporation
has been duly adopted by the governing body of the City. The date
of the adoption of such resolution is December 20 1979 A
copy of the resolution is attached hereto as Exhibit "A".
ARTICLE ELEVEN
No dividends shall ever be paid by the Corporation and no part
of its net earnings (beyond that necessary for retirement of the indebte
ness of the Corporation or to implement the public purpose of the City
for which the Corporation has been created) shall be distributed to
or inure to the benefit of its directors or officers or any private
person, firm, corporation, or association except in reasonable amounts
for services rendered. No substantial part of the Corporation's activit
shall be carrying on propaganda, or otherwise attempting to influence
legislation, and it shall not participate in, or intervene in (including
the publishing or distributing of statements), any political campaign
on behalf of or in opposition to any candidate for public office.
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ARTICLE TWELVE
If the Corporation ever should be dissolved when it has, or is
entitled to, any interest in any funds or property of any kind, real, personal,
or mixed, such funds or property or rights thereto shall not be transferred
to private ownership, but shall be transferred and delivered to the City,
after satisfaction or provision for satisfaction of debts and claims.
IN WITNESS WHEREOF, we have hereunto set our hands, this 20th day of
December , 1979.
/s/ M. B. Smith, Jr.
/s/ Mario G. Perez
/s/ W. F. Brownlee
/s/ Leota Alexander
/s/ Bill McAlister
/s/ Alfred Caviel
Incorporators
THE STATE OF TEXAS I
COUNTY OF LUBBOCK I
I, the undersigned, a Notary Public, do hereby certify that on this 20th
day of December , 1979, personally appeared before me M.B. Smith,Jr., Mario Perez,
W.F. Brownlee, Leota Alexander,Bill McAlister, & Al Caviel , who, each being
by me first duly sworn, severally declared that they are the persons who signed
the foregoing document as incorporators, and that the statements therein contained
are true.
IN WITNESS WHEREOF, I have hereunto set my hand and seal the day and
year above written.
/s/ Carole J. Lanham
Notary Public in and for Lubbock
County, Texas
My Commission Expires
(NOTARY PUBLIC SEAL)
5-11-81
City Attorney John Ross indicated the proposed resolution with attached Articles
of incorporation was merely the mechanics for implementing this nonprofit
corporation before the December 31 deadline; in the event this Bill is approved,
bonds would then be ready to be issued.
If the Ullman Bill No. 5741 is enacted, Lubbock would receive a maximum of
$25 million for housing; if it fails to be enacted, Lubbock would then go
back into the hopper under the Texas HB 1876, for which the maximum could
be $60 -$70 million, depending on the outcome of the appropriate marketing
survey to be made. There are three different formulas under which Lubbock
could qualify, all of which are dependent upon the appropriate marketing survey.
Motion was made by Mayor Pro Tem Henry, seconded by Councilwoman Jordan to
pass Resolution No. 374 authorizing the Articles of Incorporation of the Lubbock
Housing Finance Corporation. Motion carried: Mayor West, Mayor Pro Tem Henry,
Councilwoman Jordan and Councilman McAlister voting Yea; none voting Nay;
Councilman Aderton absent.
Mayor West reinterated that the issuance of these bonds, if approved, would
in no way affect the financial status of the City; this money is from private
sources and are not tax dollars; that there is no liability to the City, nor
any liability to the incorporators/board members.
DEC 40 0 1979
Sao
There being no further business, the motion was made by Councilman
McAlister, seconded by Mayor Pro Tem Henry to adjourn at 1:50 p.m.
VWesOt,Mayv*or
ATTEST:
Evelyn Gaff ga, City c e y-Treasurer
READ AND APPROVED THIS THE loth DAY OF January 1980.
r t, Mayor
ATTEST:
Evelyn Gaf ga, City Secretar reasurer
i