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HomeMy WebLinkAboutMinutes City Council - 06/26/1984MINUTES CITY OF CORPUS CHRISTI, TEXAS REGULAR COUNCIL MEETING JUNE 26, 1984 2:00 P.M. Present: Mayor Luther Jones Mayor Pro Tem Betty N. Turner Council Members: David Berlanga, Sr. Welder Brown Leo Guerrero Dr. Charles W. Kennedy, Jr. Joe McComb Frank Mendez Mary Pat Slavik • • City Manager Edward A. Martin City Attorney J. Bruce Aycock City Secretary Bill G. Read Mayor Luther Jones called the meeting to order in the Council Chamber of City Hall. The invocation was given by The Reverend Hardy Powers, III of First Church of the Nazarene, following which the Pledge of Allegiance to the Flag of the United States was led by Council Member Charles Kennedy. City Secretary Bill G. Read called the roll of required Charter Officers and verified that the necessary quorum was present to conduct a legally constituted meeting. A motion was made by Mayor Pro Tem Turner that the minutes of the Regular Council Meeting of June 19, 1984 be approved as presented; seconded by Council Member Welder Brown; and passed unanimously. Mayor Jones announced a presentation by Mr. Juan J. Gussoni, Honorary Vice Counsel of Spain, who provided information on the Sister City of Cartagena, Spain. Mr. Gussoni addressed the Council and informed them that he had received a communication from the Municipal Government of Cartagena, Spain and stated that they had noted the invitation from the City of Corpus Christi had been received; they accepted the invitation; and they have delegated a particular Council Member to be in charge of this activity. He stated that he felt the next thing would be for the City Council to get in touch with the Council Member to complete the arrangements for the sisterhood. Mayor Jones expressed the opinion that this matter should be referred to the Sister City Committee. MICROFILMED .Minutes Regular Council Meeting June 26, 1984 Page 2 Mr. Harry Plomarity, Chairman of the Sister City Committee, stated that they will be glad to do whatever is necessary to complete the arrangements. A motion was made by Council Member Kennedy that this matter be referred to the Sister City Committee to receive and evaluate the arrangements to be made to establish -Cartagena, Spain as a Sister City of Corpus Christi. The motion was seconded by Mayor Pro Tem Turner. City Manager Martin reminded the Council that the City has the bust of Alonso de Pineda, which is scheduled to be a gift to the City of Cartegena as a part of this program. Mr. Gussoni commented that a resolution passed by the City Council of Corpus Christi was presented to Cartagena, Spain. He noted that that City will be glad to receive anyone who can go to Spain and the particular Council Member of Cartagena will be glad to welcome them in an official capacity. Council Member Kennedy stated that he had been working on a trip to Spain but it has been delayed. He stated that since the Sister City relationship has not been completed in regard to the paperwork, he felt that this should be done first so that the two municipal governments can, at a later date, work out the possibility of a student exchange program, etc. Mr. Plomarity stated that there is a need to get the official designation from the Sister City International organization and his committee will make arrangements for that. The motion made by Dr. Kennedy passed unanimously. Mr. Plomarity also informed the Council that the Vice Mayor of Yokosuka, Japan, will be in Corpus Christi next month and functions will be arranged in connection with his visit. * * * * * * * * * * * * * * Mayor Jones then administered the oath to Mr. Gabriel Rivas, a new appointee to the Sister City Committee. * * * * * * * * * * * * * * Mayor Jones announced the bid opening on the following engineering project: South Bluff Park Improvement Project. This is a 1977 Bond Project which provides for renovating existing tennis courts and constructing new courts, a parking lot, picnic facilities, a new pro shop, landscaping and irrigation work in South Bluff Park. Mr. James K. Lontos, Assistant from the following companies: B. Construction Co.; Casey & Glass, Inc. Co.; Moorhouse Construction Co.; and City Manager, opened bids on this project E. Beecroft Co., Inc.; Black Brothers ; Hunt Construction Co.; L & L Construction Salazar Construction Co. Minutes Regular Council Meeting June 26, 1984 Page 3 Council Member Kennedy referred to the bid, noting that there was an additive alternate associated with the bid. He inquired if funds are available for the additive alternate if the selection of the contractor would be based on the base bid plus the alternate or just on the base bid, and Mr. Lontos replied that he felt that the base bid would determine the contractor. City Manager Martin stated that no matter how you determine who the low bidder is, there is a need to indicate in the specifications how it will be done. He stated that this becomes quite a problem when several alternates are included. Mayor Pro Tem Turner expressed the opinion 'that there is a need to have some kind of standard procedure for award of bids in this situation. Mr. Gerald Smith, City Engineer, explained that the specifications indicate that the City reserves the right to award the bid that is in the best interest of the City, and Mr. Lontos noted that the proposal does not say that the contract will be awarded on the basis of the base bid. Mayor Pro Tem Turner reiterated that this could become an issue if the practice is not standardized, and Mr. Martin agreed that a policy should be established and included in the specifications. Mayor Jones then expressed appreciation to all of the companies that had submitted bids and stated that they will be tabled for 48 hours, pursuant to the requirements of the City Charter and referred to the staff for tabulation and recommendation. * * * * * * * * * * * * * * * Mayor Jones called for consideration of Board and Committee appointments and briefly reviewed the appointments discussed during the morning workshop meeting. A motion was made by Mayor Pro Tem Turner that the following appointments be confirmed, seconded by Council Member Slavik and passed unanimously: a. Animal Control Advisory Board: Term: Mrs. Cissi Sweeney (Pres. PAWS/GSHS) - Reappointment 5/31/87 Mrs. Patsy Sparkman (Community -at -large) - Reappointment 5/31/87 Mrs. Mary Williams (Community -at -large) - Reappointment 5/31/87 b. Sister City Committee: Mrs. Billie Wilkerson (Reappointment) 5/87 Mrs. Mary Donohoe (Reappointment) 5/87 Mr. Gabriel Rivas (Reappointment) 5/87 Mrs. Alma Meinrath (Reappointment) 5/87 Mrs. Elida Gonzalez (Reappointment) 5/87 Mr. Juan J. Gussoni (Reappointment) 5/87 Dr. Rosy Bonilla (Reappointment) 5/87 Howard G. Tirschwell (Reappointment) 5/87 Mrs. Jan Chewning - 5/87 Ainutes Regular Council Meeting June 26, 1984 Page 4 c. Landmark Commission: Dr. Terrance Barragy (professional historian) 11/20/85 Mrs. Margaret Walberg (nonprofessional historian) 11/20/84 Mrs. Florence Victor 11/20/84 d. Park & Recreation Board: Mr. Jimmy Rodriguez (advisory) 8/23/85 e. Water Allocation and Review Committee: Mr. David McSwain (citizen of the city) Mr. Ted Turner (business and commerce) f. Private Industry Council: PRIVATE SECTOR: Isaac Barrera (Reappointment) 6/30/86 Larry Tucker (Reappointment) 6/30/86 Bobby Smith 6/30/86 REHABILITATION: C. Carter Luckie (Reappointment) PUBLIC EMPLOYMENT SERVICE: Allen Itz (Reappointment) COMMUNITY BASED ORGANIZATION: Sue Dyke (Reappointment) * * * * * * * * * * * * * * * 6/30/86 6/30/86 6/30/86 Mayor Jones referred to the evaluation of the City Manager which had been conducted during the morning workshop meeting. He stated that the Council, by motion, had authorized a 5% salary increase for the City Manager effective July 1, 1984 and with an additional cost -of -living salary increase that other employees will receive on August 1, 1984. He stated that he felt that this is a statement by this City Council that they believe that the City Manager has done an excellent job for the City and they are very proud of him. * * * * * * * * * * * * * * * (During the Workshop Meeting of this date, a motion was made by Council Member Joe McComb that the City Manager be granted a 5% salary increase effective July 1, 1984 and that he be granted the cost -of -living increase that other employees receive on August 1, 1984. The motion was seconded by Mayor Pro Tem Betty Turner and passed unanimously.) Minutes Regular Council Meeting June 26, 1984 Page 5 Mayor Jones called for consideration of the Consent Motions on the following items: 1. Bids be received July 18, 1984 for a twelve months supply agreement, with option to extend for an additional twelve months at the same terms and conditions, subject to the approval of the supplier and the City Manager, or his designee, for replacement auto, truck and construction equipment safety glass. Estimated annual expenditure $15,000. 2. Bids be received July 18, 1984 for twelve months supply agreement, with option to extend for an additional twelve months, subject to the approval of the seller and the City Manager, or his" designee, for water treating chemicals for Water Production, including aluminum sulphate, ferric sulphate, potassium permanganate and cationic polymers. Estimated expenditure $350,000. 3. Bids be received July 25, 1984 for option to extend for an additional conditions, subject to the approval his designee, for normal strength $19,500. a twelve months supply agreement, with twelve months, at the same terms and of the supplier and the City Manager or concrete mix. Estimated expenditure 4. Bids be received July 25, 1984 for a twelve months supply agreement with option to extend for an additional twelve months at the same terms and conditions, subject to the approval of the supplier and the City Manager, or his designee, for golf course fertilizer used by the Golf Center and Oso Municipal Golf courses. Estimated annual expenditure $20,795. Mayor Pro Tem Turner referred to item 4 and noted that the Golf Course greens are being watered by effluent and inquired about the need for the ordering of fertilizer. City Manager Martin agreed that the golf courses are being watered with effluent from the wastewater treatment plants, but stated that the nutrients contained therein are not as strong as is necessary and the fertilizer is still needed. He explained also that because of the high cost of gas, sludge is no longer available. He stated that a great deal of effluent water is available if any citizen wants to pick it up by some means and use it for watering their lawns. City Secretary Read informed the Council that the Board of Trade the lunch hour and had nominated Mr. Bryan Davis of ASARCO to serve Water Allocation and Review Committee as the industry member. met during on the new A motion was made by Council Member Mendez that Mr. Davis' appointment be approved, seconded by Council Member Slavik and passed unanimously. 5. Approving a twelve months supply agreement with the HARCO Corporation for high potential magnesium anodes with No. 6 backfill based on low bid. The agreement includes an option to extend for an additional twelve months, at the same terms and conditions, subject to the approval of the supplier and of the City Manager, or his designee. Estimated total expenditure is Minutes Regular Council Meeting June 26, 1984 Page 6 $52,230.50. Five bid invitations were issued and 3 bids were received. Prices have decreased less than 1% since the previous bid of May, 1983. 6. Approving a twelve months supply agreement with option to extend for an additional twelve months at the same terms and conditions, subject to the approval of the supplier and the City Manager, or his designee, for miscellaneous paper for Stationery Stores Inventory to the following: Century Papers, Inc. Clampitt Paper Company Total $28,745.50 Total: $13,731.20 Jim Walters Papers Total: $3,961.50 GRAND TOTAL: $46,438.20 • A 10% increase over last bid in May, 1983. Eight bid invitations were issued and five bids were received. 7. Approval of purchase of one truck mounted, air type street sweeper for the Street Division, from Industrial Disposal Supply Company, for the amount of $71,850, based on best bid. This item is included in the Revenue Sharing Fund. Mr. Tom Stewart, Director of Transportation, explained the street sweeping program. Mayor Jones stated that when he was recently in Philadelphia, he noted that street sweeping was being performed with water and inquired if anyone was familiar with that method. Mr. Stewart stated that the City, too, uses a water spray to eliminate dust in association with the street sweeper, but it is not a cleaning agent. Council Member Berlanga stated that the owners of businesses on Agnes and Laredo Streets feel that sweepers should be used at night rather than in the daytime when so many cars are parked at the curbs. Mr. Stewart explained that the major streets are swept at night. Council Member Slavik suggested that the street sweeping schedule be coordinated to follow the brush pick-up in various neighborhoods. 8. Approving the appointment of Mr. Lamont Taylor to represent Mr. Welder Brown on the Board of Directors of the Nueces County Community Action Agency. 9. Approving and authorizing the resubmission of a Burglary Task Force grant to the Criminal Justice Division in Austin. The grant provides for a two-man investigative unit which investigates the criminal activities of repeat offenders who specialize in residential and non-residential burglary. This represents the third year of funding. The total grant amount will be $29,038. The City will be contributing 40% at $11,616, Minutes Regular Council Meeting June 26, 1984 Page 7 which covers leasing of vehicles, travel, supplies, rentals, and confidential expenditures. The State will contribute 60% at $17,422. Mayor Pro Tem Turner inquired if the State were not participating in this activity if the City would fund it and further, if the City plans to fund it in the future. City Manager Martin replied that they would because this is a good, solid program. 10. Plans and specifications for modifications to Downtown Pump Station "A" be approved, and bids be received on July 24, 1984. This 1977 bond project provides for the installation of a new diesel engine, a mechanical trash rake, battery charger system, controls and related items. 11. Plans and specifications be approved for two portable buildings for the Police Department and bids be received on July 24, 1984. The new buildings would be occupied by the Community Services Division and the new Warrant Division and would relieve crowded conditions in the Police Department. Mayor Pro Tem Turner referred to item 11 and inquired about the funding. She questioned the use of bond funds for this purpose. City Manager Martin explained that the bond funds were designated for Police Building Improvements and the study was authorized on Police needs; the City adopted the recommendations; the study recommended a combined City/County jail facility; but stated that this would not be in effect for about five years. He stated that the City staff does not feel that they can wait for permanent expansion and portable buildings seem to be a temporary solution to the crowding problem. He pointed out that the buildings could be used at other locations in the future. 12. A public hearing be held on July 10, 1984, on a proposed Master Drainage Plan Revision in the area bounded by South Staples Street, Yorktown Boulevard, Cimarron Boulevard (County Road No. 13), and Oso Creek. Proposed revisions include modifying the drainage areas and the location of the drainage outfalls through a future subdivision known as Kings Crossing. Council Member Slavik inquired if the developer will pay for this revision to the Master Drainage Plan, and Assistant City Manager Lontos replied that he would. He explained further that the City has a master plan for the area; the developer wants to make some adjustments in the master plan; and he will make the dedications and pay for it. Council Member Berlanga referred to item 10 and inquired if the other engine had been replaced recently. Minutes Regular Council Meeting June 26, 1984 Page 8 Mr. Lontos stated that it had not but the City has reworked some of the engines. He explained that there may be other improvements to the pump station, but right now the proposed action is to bring the one in the worst condition up to par. He further explained that when dry conditions are in existence as they are right now, the storm sewers become full of trash; when that trash goes into the pump station it is a problem; and the plan is to obtain a rake to remove the trash. 13. Public hearing be held on July 16, 1984 by the Director of Planning in the Committee Room, City Hall, 8:45 a.m., and that a second public hearing be held on July 17, 1984 by the City Council on the contractual annexation of 24.469 acres out of a portion of Lots 1 bnd 2, Block 1, Nueces River Irrigation Park owned by Charles J. Smith and Michael E. Johnson, generally located along the west side of U. S. Highway #77, south of FM 624. 14. Public hearing be held on July 16, 1984 by the Director of Planning in the Committee Room, City Hall, 9:00 a.m., and that a second public hearing be held on July 17, 1984 by the City Council on the contractual annexation of a 1.63 acre area of land out of Lots 31 and 32, Section 27, Flour Bluff and Encinal Farm and Garden Tracts, owned by Lake Placid Townhomes, Inc., Nixon McNeil, President, generally located on the east side of Rodd Field Road, south of the north line of Saratoga Boulevard extended. 15. Public hearing be held on July 16, 1984 by the Director of Planning in the Committee Room, City Hall, 8:30 a.m., and that a second public hearing be held on July 17, 1984 by the City Council on the contractual annexation of a 4.75 acre area out of Tract 4, McIntyre Partition out of the Mariano Lopez de Herrera Grant Abstract #606, owned by 1889 Group, W. R. Durrill, General Partner, generally located along the west side of FM 1889, south of FM 624. Council Member Mendez referred to items 13 and 15 and inquired if the land was already developed. Mr. Larry Wenger, Director of Planning, informed Mr. Mendez that both of them are raw land; the plan is to develop them for commercial purposes; and identified the areas from a transparency. 16. The Leopard/Baldwin Area Street Improvement Project be accepted and final payment of $59,961.23 be authorized to King Construction Company. That the contractor be granted an 11 -day time extension against a 20 -day contract time overrun due to delays caused by utility relocation work, and liquidated damages of $100 per day for the remaining 9 days.be charged, for a total of $900. The total cost of this 1977 Voluntary Paving street reconstruction project was $430,943.84. 17. An agreement with Juliana Dunn Smith be approved providing for the City dedicating a 35 -foot wide street right-of-way out of Lot 1, Lexington Industrial Center, the City agreeing to defer the street construction requirement required by the Platting Ordinance in this short street which will serve a 26 -acre tract south of the site, and Juliana Dunn Smith agreeing to pay the City 5U% of the cost of this street construction when Minutes Regular Council Meeting June 26, 1984 Page 9 the 26 -acre tract is sold or developed, as well as a current assessment of $666.89 relating to the current South Padre Island Drive project. Mayor Jones referred to item 17 and referred to the statement that "the adjoining property would be assessed." He stated that if the City is doing this for one property owner, why is it not done for other property owners. Mr. Lontos located the land in question on a transparency and explained that the City acquired the land because of gas lines; they have been removed; the City wants to plat this lot and sell it to Mrs. Smith; and explained the plat for the Lexington Industrial Center, which requires the dedication of the street right-of-way. He stated that the owner was informed that the land dedication was necessary when he filed his plat. Mayor Jones called for comments from the audience on items 1 through 17. Mr. W. R. Cockrill referred to item 17 and stated that he had dedicated 15 feet of right-of-way in order to get his four lots platted, stating that it was required at that time. He noted that since the City has purchased 400 feet for the street right-of-way, he felt that the City should pay for the street improvements. City Manager Martin stated that the City will pay it share of streets but it is the property owner's responsibility to pay their assessments and dedicate the required amount of right-of-way. Mr. Lontos pointed out that the City has to dedicate 35 feet and Mr. Cockrill will only dedicate 15 feet. Mr. Cockrill reiterated that he did not think that it was fair to require him to dedicate 15 feet when the other dedication would be made by all of the other taxpayers. Mayor Jones pointed out that the owner who purchases that property will also have to dedicate 15 feet. Mr. Lontos explained further that if the street were dedicated today under the usual circumstances, Mr. Cockrill would be required to dedicate one-half the street, or 25 feet. Council Member Guerrero stated that if the City of Corpus Christi did not own the adjacent land and 25 feet would be required for dedication for new development, why was he only required to dedicate 15 feet. Mr. Lontos replied that there was an agreement with Mr. Cockrill that only required the 15 foot dedication. There were no further questions on the consent motions. A motion was made by Council Member Kennedy that items 1 through 17 be approved, seconded by Council Member Slavik and passed unanimously by those present and voting. * * * * '* * * * * * * * * * * .Minutes Regular Council Meeting June 26, 1984 Page 10 Mayor Jones called for consideration of the consent ordinances and ordinances from previous meetings on items 18 through 26. Mayor Pro Tem Turner referred to Ordinance No. 19, adopting the final assessment roll for the Leopard -Baldwin Area Street Improvement Project and inquired about the reason for the delay in completion. City Manager Martin stated that it was just slow work; therefore, the contractor was charged penalties. Mayor Pro Tem Turner then referred to item 26, the third reading of the lease agreement on the barge restaurant and 'expressed concern about the predicted parking problem. She reminded the staff that there was some question about including in the contract the possibility of requiring the employees to park offsite. She noted that a letter had been received from the owner, but it did not really give the Council any assurance. City Manager Martin stated that the Council asked the staff to obtain a response from Mr. Hasslocher; his letter explains that he will deal with the problem when it appears; but pointed out that Mr. Hasslocher is present to answer any concerns. Mr. Martin agreed that it will be crowded when all of the activities occur at the same peak time, but Mr. Hasslocher's parking is in accordance with the zoning ordinance. He pointed out that Mr. Hasslocher has quite a large investment in this project and it would not be in his best interest to have inadequate parking; therefore, he is of the opinion that if and when the time comes that parking is a real problem, he will deal with that. He agreed that there is a need for a parking lot to serve all of the future bayfront activities. Speaking in regard to this ordinance was Mr. Jim Hasslocher who agreed that parking is always a problem. He stated that he does not ordinarily operate his restaurants in the center of cities for that reason. He stated that he has had a problem at a restaurant in San Antonio for many years, and his establishment in Dallas does not have enough parking now. He explained that the usual procedure is for employees to park in other areas to leave the available onsite spaces for customers. He informed the Council that he has required employees to park away from the immediate site before, but the shuttle bus service to another location does present problems in that different people are working different shifts and coming to work at various times. He assured the Council that they plan to transport some employees from another parking site, but there are some for whom this would not be possible. He stated that at the time they did their survey on parking situations in this area, there were very few cars on the L -Head Landmass. .. Council Hall parking Council felt that he Council and his fine Member Slavik commented that the I.H. 37 parking lot or the City lot might provide a solution for parking. Member Kennedy stated that he had confidence in Mr. Hasslocher and would do everything possible to provide parking. Member Guerrero stated that he is very glad to have Mr. Hasslocher , new restaurant which will increase the City's economy. Minutes Regular Council Meeting June 26, 1984 Page 11 There were no further comments from the audience; City Secretary Read polled the Council for their votes; and the following ordinances were passed: 18. ORDINANCE NO. 18303 CLOSING AND ABANDONING A 30 FOOT WIDE GAS PIPELINE EASEMENT IN LOT 1, LEXINGTON INDUSTRIAL CENTER, SUBJECT TO THE PROVISIONS LISTED BELOW; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the following vote: Jones, Turner, Berlanga, McComb and Slavik voting "aye". 19. ORDINANCE NO. 18304 foregoing ordinance passed by the Brown, Guerrero, Kennedy, Mendez, • AMENDING ORDINANCE NO. 17860 BY AMENDING SECTION 3 IN ORDER TO ADOPT THE FINAL ASSESSMENT ROLL FOR STREET IMPROVEMENTS ON THE FOLLOWING STREETS: Leopard -Baldwin Area 1. Quail Drive, from Villa Drive to Breckenridge Drive; 2. Garfield Drive, from Leopard Street to Westchester Drive; 3. Reeves Drive, from Garfield Drive to Westchester Drive; 4. Vancura Drive, from the South Frontage Road of I.H. 37 to Eloise Drive; 5. Eloise Drive, from Vancura Drive to Omaha Drive; and, 6. Lantana Street Sidewalks, on the east side, from north of I.H. 37 to Saint Theresa School. AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, Mendez, McComb and Slavik voting "aye". 20. ORDINANCE NO. 18305 APPROPRIATING $1,482 FROM THE NO. 220 STREET BOND FUND TO COVER PROJECT COST OVERRUNS FOR TRAFFIC SIGNALIZATION CAPITAL IMPROVEMENTS AND MODERNIZATION PROJECT; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, Mendez, McComb and Slavik voting "aye". 21. ORDINANCE NO. 18306 APPROPRIATING $10,425 FROM THE NO. 205-81-14 WATER SYSTEM DISTRIBUTION MAIN REPLACEMENTS AND AUTHORIZING REIMBURSEMENT FUND NO. 133 FOR PROGRAMMING COSTS ASSOCIATED WITH TWO WATER THE METER CHANGEOUT SYSTEM, AND THE WORK ORDER SYSTEM; EMERGENCY. CONSTRUCTION FUND, TO DATA PROCESSING BOND FUND PROJECTS, AND DECLARING AN Minutes Regular Council Meeting June 26, 1984 Page 12 The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, Mendez, McComb and Slavik voting "aye". 22. ORDINANCE NO. 18307 CLOSING AND ABANDONING THE 10 FOOT WIDE UTILITY EASEMENT IN LOTS 4 AND 5, BLOCK 17, WOOD RIVER UNIT 2, SUBJECT TO THE PROVISIONS LISTED BELOW; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Berlanga, Browri, Guerrero, Kennedy, Mendez, McComb and Slavik voting "aye". 23. SECOND READING AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT FOR GRAZING PURPOSES WITH MR. AND MRS. JOE A. HANSLER, FOR A 28.06 ACRE TRACT ACQUIRED IN CONNECTION WITH THE NAVY CLEAR ZONES LAND ACQUISITION PROJECT. The foregoing ordinance was read for the second time and passed to its third reading by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, Mendez, McComb and Slavik voting "aye". 24. SECOND READING AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE A CONTRACT BETWEEN THE CITY OF CORPUS CHRISTI AND TIM CLOWER, R. C. ALLEN, WES LEDFORD AND DIANA CHEEK, TOMMY THOMPSON, ALFRED EDGE, GARY BURSHELL AND DIOCESE OF CORPUS CHRISTI FOR THE ANNEXATION OF BRIGHTON VILLAGE UNIT 3 AND BRIGHTON VILLAGE UNIT 4 AND APPROXIMATELY 9 ACRES OF LAND OUT OF LOTS 9 AND 10, SECTION 11, FLOUR BLUFF AND ENCINAL FARM AND GARDEN TRACTS, NUECES COUNTY, TEXAS; FINDING ALL OF SAID LAND TO LIE ENTIRELY WITHIN THE EXTRATERRITORIAL JURISDICTION OF THE CITY OF CORPUS CHRISTI, TEXAS, ADJOINING, CONTIGUOUS, AND ADJACENT THERETO; PROVIDING FOR SEVERABILITY. The foregoing ordinance was read for the second time and passed to its third reading by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, Mendez, McComb and Slavik voting "aye". 25. SECOND READING AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE A CONTRACT BETWEEN THE CITY OF CORPUS CHRISTI, PENDARIS CORPORATION AND LUTHERAN CHURCH MISSOURI SYNOD FOR THE ANNEXATION OF WOOD RIVER UNIT 6, NUECES COUNTY, TEXAS; FINDING ALL OF SAID LAND TO LIE ENTIRELY WITHIN THE EXTRATERRITORIAL JURISDICTION OF THE CITY OF CORPUS CHRISTI, TEXAS, ADJOINING, CONTIGUOUS, AND ADJACENT THERETO; PROVIDING FOR SEVERABILITY. The foregoing ordinance was read for the second time and passed to its third reading by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, Mendez, McComb and Slavik voting "aye". Minutes Regular Council Meeting June 26, 1984 Page 13 26. ORDINANCE NO. 18308 AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE LEASE AGREEMENT WITH HASSLOCHER ENTERPRISES, INC., TO EXTEND THE OPENING DATE OF THE BARGE RESTAURANT TO JULY 15, 1984, AND APPROVING MOORING AND ENTRYWAY PLANS FOR SAID BARGE RESTAURANT. The foregoing ordinance was read for the third time and passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, Mendez, McComb and Slavik voting "aye". * * * * * * * * * * * * *'.* * City Manager Martin interjected and reminded the Council that a rate hearing on Athena Cablevision is scheduled for today and suggested that since it will involve a great deal of testimony, that a brief recess be taken and that the rate hearing be conducted at Exposition Hall, since the Planning Commission has a previously scheduled meeting in the Council Chamber. * * * * * * * * * * * * * * * Mayor Jones called for consideration of the Ordinances from the Regular Agenda, referring in particular to item number 27 pertaining to modification of the group health care program. City Manager Martin explained that after a great deal of consideration, the staff has devised a program that provides funds but at the same times offers some cost savings factors. He noted that the essence of the program is that the insurance rates will be increased; the employees' contributions will be increased; and at the same time, adjustments will be made in the plan. He explained that at the same time, the staff will be urging employees to consider HMO coverage. Council Member Kennedy stated that he is on the advisory board of HMO and he did not feel that he should participate in this discussion or vote on it. City Manager Martin stated that the City is already a member of HMO and he did not believe that this would represent a conflict of interest if Dr. Kennedy would like to participate in the discussion. City Manager Martin continued by pointing out that medical costs are constantly increasing and the City feels that cost-containment measures must be taken, particularly in view of the fact that there have been drastic decreases in Medicare coverage. He explained the various types of coverage that will no longer be available to employees. Council Member Slavik referred to the cost to employees of only $1.00 per month and questioned why this is such a low payment, and City Manager Martin explained that this was started as an extra benefit to the employee many years ago. He pointed out that increasing this to $2.00 per month would provide Ainutes Regular Council Meeting June 26, 1984 Page 14 $27,000 more per year for the City. He explained that there would still be cost for dependent coverage, but the City is attempting to eliminate some of those costs. He assured the Council that this City's program is comparable to other cities and the cost is much less than private companies usually provide. He stated that he has nothing against some of the cost-containment measures because he felt that this would encourage employees to seek out-patient services, etc. Mr. Mendez referred to the fact that instead of giving employees better coverage, the required deductible would take away from any benefits derived from a cost of living increase. He pointed out that the aggregate of the deductible would be $750 whereas in the existing coverage it is $300. He expressed the opinion that this is a very large deductible and questioned also the elimination of 100% coverage for accidents. He suggested that employees might be willing to pay an additional amount for better coverage. He expressed the opinion that this matter should be further discussed during the budget workshops and that possibly other insurance companies and programs should be examined. City Manager Martin stated that the self-insured plan would be much less expensive than another company. Council Member Mendez reiterated that he still felt that better coverage could be provided for employees. He suggested that this ordinance be tabled until the Council has an opportunity to examine it as a part of the total budget. City Manager Martin explained that it is necessary to have it effective August 26, 1984 but a tremendous amount of lead time is necessary. After further discussion Mayor Jones suggested that the ordinance be listed as a three reading ordinance and final action could be completed by July 10, 1984. Council Member Mendez indicated his concurrence. City Secretary Read polled the Council for their vote on the first reading of ordinance number 27, and it passed as follows: 27. FIRST READING AUTHORIZING MODIFICATION OF THE GROUP HOSPITALIZATION PROGRAM TO PROVIDE FOR CHANGES IN PREMIUMS, CONTRIBUTION RATES, AND BENEFITS; PRESCRIBING COST-CONTAINMENT MEASURES AND OPTIONAL PARTICIPATION IN THE HEALTH MAINTENANCE ORGANIZATION; AUTHORIZING THE CITY MANAGER TO EXECUTE LETTERS OF AGREEMENT OR UNDERSTANDING WITH THE COLLECTIVE BARGAINING UNITS; AUTHORIZING THE CITY MANAGER TO MAKE SUBSEQUENT MODIFICATIONS IN ALL AREAS OF THE PROGRAM PURSUANT TO THE POLICIES SET FORTH HEREIN; REPEALING ALL CONFLICTING ORDINANCES.. The foregoing ordinance was read for the first time and passed to its second reading by the following vote: Jones, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez, and Slavik voting "aye"; Turner absent at the time the vote was taken. Minutes Regular Council Meeting June 26, 1984 Page 15 There were no questions on ordinance 28, which was the first reading to amend the Plumbing Code and City Manager Martin gave a brief explanation on ordinance 29, which is the first reading of the Wastewater Pre-treatment ordinance. He stated that as part of any wastewater operation, a city must have a long complicated ordinance on pretreatment as required by EPA. He explained that this ordinance is just to update other ordinances pertaining to this in order to be in compliance with EPA regulations. He assured the Council that staff members have met with the commercial and industrial customers; the change in the ordinance has been explained to the major industries that are affected by it; and it has been approved by EPA. Council Member Slavik stated that she had requested through the City Secretary's Office a copy of the letter from EPA, but she did not receive it. Assistant City Manager Lontos apologized and stated that he was under the impression that it had been sent to the City Manager's Office. There were no comments on ordinances 28 and 29; City Secretary Read polled the Council for their vote; and the following ordinances were passed on first reading: 28. FIRST READING AMENDING THE PLUMBING CODE OF THE CITY OF CORPUS CHRISTI BY ADDING A NEW APPENDIX I - WATER CONSERVATION. The foregoing ordinance was read for the first time and passed to its second reading by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez, and Slavik voting "aye". 29. FIRST READING AMENDING ARTICLE XI, COMMERCIAL AND INDUSTRIAL WASTE DISPOSAL STANDARDS, OF CHAPTER 55, UTILITIES, OF THE CODE OF ORDINANCES OF THE CITY OF CORPUS CHRISTI, TEXAS; PROVIDING FOR THE REGULATION OF COMMERCIAL AND INDUSTRIAL WASTE DISPOSAL AND PRETREATMENT; PROVIDING A STATEMENT OF PURPOSE AND POLICY; PROVIDING AN APPLICABILITY CLAUSE; DEFINING TERMS; PROVIDING GENERAL PROHIBITIONS, LIMITATIONS AND REGULATIONS; PROVIDING PRETREATMENT STANDARDS AND REGULATIONS; ADOPTING FEDERAL CATEGORICAL PRETREATMENT STANDARDS; REQUIRING PERMITS; ESTABLISHING FEES; PROVIDING INDUSTRIAL WASTE DISCHARGE PERMIT REPORTING, MONITORING AND INSPECTION PROCEDURES; PROVIDING FOR AN ABNORMAL SEWAGE SURCHARGE; ESTABLISHING ENFORCEMENT PROCEDURES; PROVIDING A SEVERABILITY CLAUSE AND PROVIDING FOR PUBLICATION AND AN EFFECTIVE DATE. The foregoing ordinance was read for the first time and passed to its second reading by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez, and Slavik voting "aye". * * * * * * * * * * * * * * * Mayor Jones announced the public hearing on the following street closing: Minutes Regular Council Meeting June 26, 1984 Page 16 30. STREET CLOSING - the west 10 feet of O'Neill Street in Flour Bluff. The request is made concurrently with the platting of a 6 acre tract into which O'Neill Street dead ends. Assistant City Manager Lontos located the street on a map and pointed out the land that was zoned "B-3". He explained to the Council that the Platting Ordinance requires that if a stub street such as this exists, it must be extended or the developer must build a cul-de-sac. He stated that in this case, Mr. Webb prefers not to construct a cul-de-sac and the type of plan to use is for new development that would not be compatible with residential use to the south. He stated that at the time the Planning Commission considered this, they had a problem with it and a decision was made to close about 10 feet of the street and if this is done and it becomes private property, the cul-de-sac would not be required. Mr. Lontos explained that the Engineering staff has some reservations about the possibility of setting a precedent if this is approved. He stated that they believe that the ordinance allows for the deletion of the cul-de-sac in situations such as this. He informed the Council that Mr. Webb has agreed to construct a screening fence so that there will be no circulation of traffic into the subdivision and he also agrees to place a condition on his plat that there will be no access to his property onto O'Neill Street. He stated that the staff recommends that the street not be closed, but that the matter of the cul-de-sac be resolved with the platting procedure which would require a screening fence and that there would be no access to the property from O'Neill Street. Mr. Carl Webb stated that he did not feel that there is a need for the cul-de-sac in relation to the use that is planned. He stated that he plans the construction of storage units; he does not need access to O'Neill Street; and he urged that the Council approve this plan which could be resolved through the platting procedure. A motion was made by Council Member Kennedy that the hearing be closed, seconded by Mayor Pro Tem Turner and passed unanimously. A motion was made by Mayor Pro Tem Turner that the request to close 10 feet of O'Neill Street be denied, seconded by Council Member Kennedy and passed unanimously. Mr. Lontos informed the Council that he will have an item on the agenda the next week to deny the request and include approval of the conditions mentioned during the public hearing. * * * * * * * * * * * * * * * Mayor Jones announced the public hearings on two zoning applications. Minutes Regular Council Meeting June 26, 1984 Page 17 31. Application No. 584-12, Mr. R. D. Dickson, Sr.: for a change of zoning from "F -R" Farm -Rural District to "I-2" Light Industrial District on a parcel of land being 4.61± acres out of the northeast portion of Lot 28, and southeast portion of Lot 32, H.B. Sheppard Farm Lots, located between Leopard Street and Bearden Drive, and east of Suntide Road. Assistant City Manager Tom Utter informed the Council that in response to the eight notices of the public hearing that were mailed, four in favor and none in opposition had been returned, and that both the Planning Commission and Planning staff recommend approval. Mayor Jones ascertained that no one in the audience wished to speak in opposition to this zoning application. A motion was made by Mayor Pro Tem Turner that the hearing be closed, seconded by Council Member Mendez and passed unanimously. City Secretary Read polled the Council for their vote effecting the zoning change and it passed as follows: ORDINANCE NO. 18309 AMENDING THE ZONING ORDINANCE UPON APPLICATION OF R. D. DICKSON, SR. BY CHANGING THE ZONING MAP IN REFERENCE TO A PORTION OUT OF LOT 32, H.B. SHEPPARD FARM LOTS, FROM "F -R" FARM -RURAL DISTRICT TO "I-2" LIGHT INDUSTRIAL DISTRICT; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez, and Slavik voting "aye". * * * * * * * * * * * * * * * 32. Application No. 584-11, Mr. Kip Layton, Trustee: for a change of zoning from "R -1B" One -family Dwelling District to "AB" Professional Office District on Lot 10, Block 3, Arcadia Subdivision, located between South Staples Street and Florida Avenue, approximately 650' south of Louisiana Boulevard. Assistant City Manager Utter informed the Council that in response to the 23 notices of the public hearing, 7 in favor and 6 in opposition had been returned; the Planning Commission recommends approval, but the Planning staff recommends denial; and the 20% rule is in effect which will require 7 affirmative votes of the Council to approve. Mr. Larry Wenger, Director of Planning, located the area on the zoning and land use map, described the land use in the surrounding area and showed slides of the vicinity. Mr. Utter interjected that the staff is of the opinion that the use would be an intrusion into the residential area on Florida Street and they therefore recommend denial of the request." Minutes Regular Council Meeting June 26, 1984 Page 18 Mr. Wenger continued by stating that this property has a double frontage on Staples and on Florida Streets and the staff is of the opinion that granting this zoning would have an adverse effect on the residential properties. He then reviewed the various zoning applications that have occurred on this particular piece of property and expressed the opinion that this lot would be suitable for a single-family dwelling. Council Member Berlanga expressed the opinion that the requested zoning would not be offensive to the neighborhood when there are already business uses in that area. Council Member Guerrero expressed the opinidn that an attractive building to be placed on this lot would be preferable to the vacant lot with overgrown weeds. Mr. Wenger stated that the plan was to have the proposed structure back up to Florida Avenue, and if this application is approved, it would have the effect of generating other requests. He pointed out that the residential properties across the street would be in the position of facing the rear of a business use. He stated that they do plan to construct a screening fence, but this would not be very attractive either. Council Members Berlanga and Guerrero to vote to approve this change of zoning. Council Member Slavik suggested that applicant be allowed to speak. disagreed and stated that they plan before decisions are made, that the Mr. Kenneth Hannah, speaking on behalf of Mr. Kip Layton, and representing the Planned Parenthood Organization, presented a letter from Mrs. Marion Wilson which indicates that Planned Parenthood has done a good job of maintaining their property at their existing location. He urged approval of the request, and pointed out the following items: (1) it is a vacant lot that is an eyesore; the other half of the lot is asphalt; (2) the organization plans to construct a one-story professional building with 2,100 square feet on this lot; (3) they will install a screening fence at the rear of the property; (4) Planned Parenthood would be willing to extend the screening fence in a line to follow along with the curb on Florida Street; (5) another change that they would be willing to make on their plans would be to install an exit and an entrance driveway on Staples Street to alleviate traffic problems; and (6) assured the Council that there would be no entrances or exits on Florida Street. Mr. Hannah continued by answering some of the concerns posed by those who are in opposition. He stated that they will not have a driveway or an exit on Florida Street; Planned Parenthood only has about 10 people per day going to their facility and there are only four employees; their site plan provides for 14 parking spaces which are more than required; previously approval was given for a drive-through bank facility at this location, which he felt would generate more traffic than their facility; he did not think that it would be practical to construct a house on this lot; the planned screening fence would act as a buffer; and that the neighborhoods concern that it would increase crime is not valid. He then urged that "AB" zoning be approved. Minutes Regular Council Meeting June 26, 1984 Page 19 Council Member Kennedy inquired if they would consider constructing the screening fence to tie on to the existing fence next door and landscape the back area on the Florida side of the fence. Mr. Hanna stated that he felt that Planned Parenthood would be glad to do that. Mayor Pro Tem Turner stated that she agreed that it was not suitable for a residential property, particularly to face on Staples Street, but expressed concern that the property might be sold if the "AB" zoning is granted and it could be converted to another use with a tall, multi -story building. She inquired if the applicant would consider a special permit. Mr. Hannah stated that they prefer the "AB" zoning because a lot of money will be spent on acquiring the property and if the planned use should cease to exist, the property would have to be sold. Council Member Slavik stated that she would prefer a special permit to prohibit access on Florida Street. She also expressed concern that if the property is sold, a large building could be constructed there. Mrs. Alex Hornblower, 202 Ohio, Vice President of Planned Parenthood Board of Directors, appeared before the Council and assured the Council that if this request is approved, they will be good neighbors. She stated that they are a planning agency for Planned Parenthood, not an abortion clinic, and their operating expenses have been raised entirely within the community. She stated that they receive no state or federal funds and explained the services of Planned Parenthood. She expressed the opinion that this would actually be an asset to this portion of the City because of their high standards for building construction. Mr. Utter informed the Council that Planned Parenthood would not own this building for two years; it will be owned by another party; and it will be donated following that two year period. He pointed out that if something happens to the Planned Parenthood Organization, the owner does not want to be encumbered with this building. He pointed out that if the Council grants this zoning request, there is nothing to prohibit access onto Florida Street and nothing to require the other ammenities discussed. Mrs. Mary Brooks, 725 Elizabeth, spoke in favor of the application, stating that she had lived across the street from their existing building occupied by Planned Parenthood for some time and assured the Council that they have been good neighbors. Mrs. Wallace Benedict, 1150 Florida, spoke in opposition, stating that she felt that the lot is in one of the older sections of the City and many of the homes have been recently improved. She stated that this is a residential street and many attempts have been made to rezone this particular piece of property. She assured the Council that although they feel that the Planned Parenthood Organization is a very responsible one, they are concerned about the result if the property is sold or when future boards are in charge of the organization which might have different ideas and decide to construct a much taller structure. Minutes Regular Council Meeting June 26, 1984 Page 20 She also expressed concern that if this is approved, other property owners will submit zoning applications for similar changes in zoning. Ms. Gay Williams, Director of Planned Parenthood, assured the Council that they would not do anything to damage the residential property on Florida Street, stating that she had grown up on that street. Mr. Gene Payssee displayed slides of the houses on Florida Street and informed the Council that the owner of this particular piece of property deliberately killed all of the vegetation on this lot which makes it look even worse. He expressed the opinion that this property could be developed for single family dwelling. He informed the Council that he had just spent $30,000 to improve his home on Florida Street and he felt that this "AB" zoning would be a detriment to their neighborhood. A motion was made by Mayor Pro Tem Turner that the hearing be closed, seconded by Council Member Kennedy and passed unanimously. Mayor Jones expressed the opinion that a special permit is a reasonable solution to this problem because he felt that the residents have a right to retain the residential nature of their neighborhood and a special permit is the only means by which certain restrictions can be included. A motion was made by Council Member Slavik that the requested zoning of "AB" be denied, but in lieu thereof that a special permit be approved in accordance with an approved site plan. Mayor Jones expressed the opinion that the site plan could include some of the other stipulations mentioned by the residents. Council Member Slavik inquired about the situation if Planned Parenthood should move from this location, and Mr. Utter replied that the special permit continues with the land according to the site plan; the screening fence would be constructed to run so many feet along the line of the curb; there would be a screening fence at the rear of the proposed structure; if the property were sold, another "AB" type use could move into the building, but they would still have to maintain the fence, the landscaping, the same driveways and that there would be no access on Florida Street. Mayor Jones reviewed Council Member's Slavik motion by stating that it is for a special permit for "AB" uses only in accordance with the approved site plan which will include other specifications discussed during the public hearing. Council Member Kennedy seconded the motion. Council Member McComb pointed out that the applicant does not want a special permit and trying to reach a compromise by granting a special permit will not accomplish anything. He stated that he plans to vote against "AB" zoning and against a special permit. He also referred to the condition of the vacant lot and suggested that Neighborhood improvement should see that the lot Ainutes Regular Council Meeting June 26, 1984 Page 21 is cleaned up. He expressed the opinion that the rear of a building facing residential lots even with a six foot fence is very distasteful. Mayor Jones expressed the opinion that the applicant would prefer a special permit to direct denial and he did not think there were sufficient votes to approve "AB" zoning. A motion was made by Council Member McComb that the Council recess for ten minutes at 6:11 p.m. The motion was seconded by Council Member Brown and passed unanimously. Mayor Jones reconvened the Regular Council Meeting at 6:19 p.m. and called for the vote on the motion for the special permit. The motion to approve the special permit passed as follows: Jones, Turner, Berlanga, Brown, Kennedy, Mendez and Slavik voting "aye"; Guerrero absent at the time the vote was taken; McComb voting "no". * * * * * * * * * * * * * * * Mayor Jones called for petitions or information from the audience on matters not listed on the agenda. Mr. Calvin Floyd addressed the Council in regard to the proposal to raise the fees for licenses for Master and Journeyman Electricians. He pointed out that the City does not have enough inspectors to take care of the work that is being done and that some electricians are working in this City without licenses. He stated that the residential permit fees have been decreased and urged that those fees be increased to allow for payment to provide salaries for more inspectors. He expressed the opinion that those fees should be increased to support the building division and make it possible to employ additional electrical inspectors. Mayor Jones explained that the City Council will start to consider the budget and at that time the Council will determine how much more can be allocated for additional electrical inspectors. He expressed appreciation to Mr. Floyd for appearing before the Council. Mayor Jones indicated that any other petitions from the audience would be considered after the public hearing on the Athena Cablevision rate request. The meeting was recessed at 6:32 p.m. * * * * * * * * * * * * * * * Mayor Jones reconvened the Regular Council Meeting in Exposition Hall and announced the cable television rate hearing as listed below: 33. Cable Television Rate Hearing Application of Athena Cablevision of Corpus Christi, Inc. for an increase in monthly basic cable television service rates as follows: 1inutes Regular Council Meeting June 26, 1984 Page 22 Service: Current Athena's Cable Commission Auth'd. Rate Req'd Rate Recommended Rate Residential, 1st outlet $7.50 $10.50 Residential, addl. outlet 2.50 5.00 Converter rental 2.50 0.00 Multi -family, 1st outlet 7.50 8.93 Multi -family, addl. outlet 2.50 4.25 Hotel/Motel, 1st outlet 7.50 8.93 Hotel/Motel, addl. outlet 2.50 4.25 $8.55 3.11 2.50 8.55 3.11 8.55 3.11 City Manager Martin explained the procedure. -to be followed and suggested that 15 minutes be allowed for the presentations by the Cable Communications Commission, representatives of Athena Cablevision and by the City's consultant. Discussion followed and a motion was made by Council Member Slavik that the presentations be limited to 20 minutes with allowance for a 5 minute rebuttal; seconded by Council Member Kennedy and passed unanimously. The first presentation was by Mrs. Mary Wyatt, Chairman of the Cable Communications Commission who noted that Touche, Ross and Company, representing the City, used data that was based on 1983 figures, but some of the data used by Athena was based on 1982 data. She noted also that there was $174,900 difference between the request of Athena and that which is recommended by Touche Ross. Mrs. Wyatt continued by stating that the Cable Communications Commission recommends that Athena be granted the following: 1) 13.69% rate of return and 20% return on equity; 2) Basically, they agree with the recommendations of Touche-Ross in that 70% of the allocation of investment and expenses be made to basic service based on active channels and subscribers rather than based on channel capacity; 3) They concur with the consultant in that converters should continue to be provided on a rental basis rather than having converters supplied free to all subscriber, since this would be a charge for all subscribers, even those who do not desire to use the converters or who do not need them. Mrs. Wyatt referred to another issue and noted that they will be discussing those at their next meeting which will be the following evening. She stated that there is some controversy with the public access program, particularly religious access which is currently sharing Channel 10 with the programs on T.V. station CBN. She agreed that this may or may not be an issue that should be discussed at this time. She explained that the Christian access channel has been Channel 10 and the people using that channel feel that they would be treated unfairly if they had to move to a high channel to accommodate CBN, noting that they can be pre-empted by Athena. Council Member Mendez expressed the opinion that the Commission should not be concerned at this time with the problems with the religious channels since this should be strictly a rate hearing. He agreed that that problem should be dealt with, but at another time. Minutes Regular Council Meeting June 26, 1984 Page 23 A motion was made by Council Member Kennedy that the hearing be limited to the rate increases and any other comments be omitted. Mayor Jones inquired of Mrs. Wyatt if she concurred and she stated that she felt that'the whole scheme of things should be considered. Mr. Jay Doegey, Assistant City Attorney, stated that the Cable Commission had discussed the issue of who should use Channel 10. He explained that under the franchise, it is designated as the public access channel which is primarily being used for religious programming and this should have priority over any other program that Athena chooses to show. He stated that if the City, through this rate process, approves Athena's plan, then the problem would be solved because everyone would have a converter and it would not matter which channel was used. But after the converter issue is decided and it is possible that it will continue on a rental basis, the Commission will discuss the problem with the public access channel and whether it should be moved from Channel 10. The motion to limit the hearing to the rate issue was seconded by Council Member McComb. Mr. Doegey explained that what basically is before the Commission at their meeting tomorrow night is the previous request by Athena to move the religious access to another channel. He explained that the company has the right to use the channel for CBN and what is being proposed is an amendment to the franchise to change that channel number that is to be designated for public access. The motion passed by a majority of the Council Members. Mayor Pro Tem Turner inquired of Mrs. Wyatt if the Cable Commission basically concurred with Touche-Ross on most of their recommendations and Mrs. Wyatt indicated that they did. Mr. Jerry Benadum, Attorney representing Athena Cablevision of Corpus Christi, referred to copies of a letter presented to the City Council which narrows down the major differences between their request and the recommendation of Touche-Ross. He noted that the issue before the Commission included a performance review and stated they had conducted a survey and determined that Athena's performance was satisfactory during the past year. Mr. Benadum continued by stating that he felt that it is critical that the Council recognize the fact that this company has lost money and continues to lose money and the only thing that has kept Athena in Corpus Christi is support from the parent company. Mr. Benadum continued by stating that their request for a rate increase was presented in January; they have received Touche-Ross' report and recommen- dations; and they will attempt to provide a rebuttal to some of the recommendations that they have made. Mr. Benadum expressed the opinion that Touche-Ross had made errors in their computations, particularly on the following matters: (1) Revenue from the installation of basic services was overstated in the Touche-Ross report in the amount of $233,727. (2) Programming costs are expenses which relate entirely fo basic services and are specifically itemized Minutes Regular Council Meeting June 26, 1984 Page 24 in the audited actual 1983 profit and loss statement of Athena. He noted that Touche-Ross calculations omitted these programming costs, which must be paid out of basic revenues. He stated that this had the effect of understating the amount of revenue which must be generated from the basic rates in the amount of $116,444. (3) Production Costs are expenses which relate only to basic services •and are not incurred in any manner for the operation of the pay channels. He stated that these expenses also were not taken into account by Touche-Ross in calculating the amount of revenue that must be generated from basic rates; therefore, the basic rates must be adjusted to make up for this additional expense item in the amount of $22,384. Mr. Benadum noted the total effect of the above noted errors is that the rates recommended by Touche-Ross must be increased to generate $372,555 more revenue than was originally stated in the Touche-Ross report or an additional increase of $1.02 per month in the single-family residential rate. Mr. Benadum continued by stating that Athena is in the process of completing a 54 channel system and the company has already begun this operation. He noted that Touche-Ross allocated only on the 26 channels actually in use and totally ignored the 54 channels on which money has already been spent. Mr. Benadum then referred to the revenue requirement and stated that the company computed required revenue was $6,864,000; the company only requested $4,787,000 due to the fact that the company recognizes that it cannot charge in this market place a high enough rate to give it a fair rate of return in order to have a profit. He noted that the Touche-Ross recommendation was for even less than this in the amount of $4,612,000. Mr. Benadum continued by stating that in order for the company to receive a fair rate of return, they had asked for a $10.50 rate for residential first outlet which does not even give them a fair rate of return, yet the consultant recommended a rate for the residential first outlet of $8.55. Mr. Benadum also objected to the statement made by Touche-Ross that approximately $175,000 was the difference in what the company requested and what the consultant recommended. He stated that this was just the difference between what they had recommended, not what they actually required, and what the consultant recommended. Mr. Benadum also explained that they had a different viewpoint of price elasticity in that they contended there will be a 1% loss of subscribers for every 10% increase in rates, whereas the consultant indicate that they did not think there would be a loss of subscribers due to increase in rates. Mr. Benadum summarized his presentation by urging that the Council take into consideration the effect of the errors in computations that had been made by Touche-Ross on the following items: installation revenue, which would amount to .64" per single family residential subscriber; programming cost, .32 per month per single family residential subscriber; and production cost, .06fi per month per single family residential subscriber; or a total of $1.02. He stated that they felt that $11.12 would be the appropriate rate for the residential users. Mayor Jones then recognized the consultant from Touche-Ross and Company. linutes Regular Council Meeting June 26, 1984 Page 25 Ms. Ann Seybolt, representing Touche-Ross, referred to slide presentations showing their comparisons and recommendations. *Council Member Leo Guerrero arrived at the hearing at 7:31 p.m. Ms. Seybolt continued by stating that they agree that Athena does need increased revenues and their recommended increase is $1,005,700 which is a 27.9% increase over current basic revenue. She stated that this is only $174,900 less than the company's requested increase. Ms. Seybolt then reviewed their entire report explaining how the formula was devised to determine the revenue requirement to effect an appropriate rate increase. Note: A copy of the Touche-Ross report is attached to the official copy of the minutes and considered to be a part of them. Speaking on behalf of the City staff was Mr. Jay Doegey, Assistant City Attorney, who explained that the City employed Touche-Ross to perform the study, following which the staff studied both proposals and agreed with the Touche-Ross study. He stated that they had reported this to the Cable Communications Commission and they came to the same conclusion as the staff and Touche-Ross. He stated that the largest issue is the allocation of basic pay and the other difference is looking at the Touche-Ross analysis which includes 29 channels on which the allocation of investment and expenses to basic service were based, whereas, the company used the figures based on channel capacity for 54 channels. He stated that the staff felt that the channel capacity should be computed at the time they actually had activated those additional channels. Council Member Slavik referred to the rate chart and noted that the City and the consultant recommend that multi -family rates be the same as individual homeowners. Mr. Doegey explained that the staff, the consultant, and Cable Commission all agree that homeowners should no longer subsidize the multi -family users by having to pay more than they do. Council Member McComb agreed with Athena in that more and more multi -family units are going to the dish operation rather than subscribing to Athena Cablevision. Mr. Doegey agreed that hotels are doing this but not so many apartments. Mayor Jones then called for comments from the audience. Mr. Fran Caulfield, President of the Electronics Association for Corpus Christi, referred to the time when the cable company first came to the City many years ago, noting that they had many problems and the electronic industry endeavored to cooperate. He stated that they tried at that time to convince Athena that it would not be appropriate to install a converter in every home. He expressed the opinion that it is the City's responsibility to control the cable system. He stated that they are opposed to the forced installation of converters by the company in every subscriber's home, and if this is Minutes Regular Council Meeting June 26, 1984 Page 26 allowed, every subscriber will be required to have one and this charge will be passed on to the consumers. Mr. Earl Aldridge, 622 Pasadena, stated that he is co-owner of a television company. He stated that they agree that Athena needs an increase but urged that it not be' hidden costs such as supplying converters to every subscriber. He pointed out that some citizens have already purchased their own converters and others have purchased television sets that have the built in capability of televising all channels. Mr. Maurice Shaw, owner of Mason's T.V. and president of the local electronics association, also spoke in opposition to the requirement that Athena install converters in all subscribers' homes. He stated that this would eliminate customer choice. He also mentioned the concern that Athena had expressed that multi -family dwellings will move to satellite reception. He expressed the opinion that the only reason that the multi -family dwelling owners would do that is that they are not satisfied with the company operation. He stated that they want the company to make a profit but they should not dominate other companies that are in the same business. He expressed the opinion that his customers have the right to choose the kind of television sets they want and many T.V.'s are being purchased that are cable -ready now. He also stated that he felt there are many complaints about the service Athena provides. Mr. Mike Kirstin spoke as a property owner and objected to the installation in front yards of devices for the transmittal of signals. He expressed the opinion that they are a hazard, dangerous and should not be allowed. No one else spoke in regard to the rate increase request. A motion was made by Mayor Pro Tem Turner that the hearing be closed. Mayor Jones reminded the Council that time was to be allowed for a rebuttal and called on the Touche-Ross representative. Ms. Seybolt stated that she did not have too much to say but she would like to re-emphasize the fact that the difference in the company requested increase and the Touche-Ross recommended increase was only $175,000. She stated that her company agrees that the recommended increase would be appropriate. Mrs. Wyatt, Chairman of the Cable Communications Commission, stated that she had no additional remarks. Mr. Benadum, representing Athena Cablevision, pointed.. out that the representative of Touche-Ross was a resident of Dallas, Texas and her statement that there is not a great deal of difference between what the company has requested and their recommendation is erroneous in indicating that it will not hurt Athena. He pointed out that this is a much smaller city and the $175,000 represents a great deal of difference and it will be harmful to Athena. He then referred to the errors made in the Touche-Ross report which were not presented to the Cable Commission. He referred again to the errors made by Touche-Ross on installation revenue, programming costs and production costs, pointing out that it represents a total of $372,555. He referred to them as simply accounting Minutes Regular Council Meeting June 26, 1984 Page 27 errors, but noted that the Cable Communications Commission did not have the benefit of the correct figures on those items. He also alleged that their analysis of the multi -family situation was erroneous as well and expressed the opinion that an apartment complex would be hesitant to purchase their services at a cost of $8.55. Council Member Kennedy stated that he would like to have the City staff and the City's consultants comments on the allegation of errors. Ms. Seybolt stated that she had just heard this during the public hearing tonight and denied that the production costs were in error. Further discussion followed on the alleged errors and Mr. Benadum pointed out that they still feel that their primary competition will be the dish or satellite, which will be used more and more if the apartment or multi -family user rates are raised. Mayor Jones then asked Mr. Benadum about the number of users Athena has now. Mr. Benadum stated that they now have 36,770 users; one year ago in 1983 they had 30,000 users; and he estimated that two years ago they had about 29,000 users. City Manager Martin interjected that he disagreed with those figures, stating that they have a lot more users now, and in fact, the City staff feels that they have approximately 42,000 customers in single-family dwellings. Further discussion followed between the staff and the Council. Mayor Jones then referred to the issue of the converters. He expressed the opinion that the company's proposal to require that everyone have a converter at no charge is wrong because this would mean that the people would have no choice and everybody would be subsidizing the installation of the converters. Council Member Kennedy stated that he was a believer in getting what you pay for and the users should pay for the converters if they desire to rent them. Dr. Kennedy then made a motion to adopt the Touche-Ross report and establish the rates that they had recommended. The motion was seconded by Council Member Mendez. Mayor Pro Tem Turner expressed concern about the allegation by Athena Cablevision that the City's consultant had made errors in computation. She stated that she would like for the consultant to have an opportunity to review the alleged errors and that this be done prior to the final adoption of the rates. A motion was made by Mayor Pro Tem Turner that the hearing be closed and that Touche-Ross be requested to bring an analysis on the alleged errors as reported by Athena prior to the adoption of the new rates. The motion was seconded by Council Member Slavik. Minutes Regular Council Meeting June 26, 1984 Page 28 Council Member McComb expressed the opinion that Athena should be allowed to respond to a revised report that might be made by Touche-Ross. Mayor Jones then inquired if the hearing had been closed and it was ascertained that it had not. City.Manager Martin suggested that an ordinance to approve the rates of the advisory commission and the consultant be placed on the agenda the next week, but that Athena representatives and the Touche-Ross consultants be allowed to provide the information requested by Mayor Pro Tem Turner. Council Member Mendez suggested that during the hearing next week that the remarks be limited to the points on the alleged errors in the Touche-Ross report and Mayor Jones agreed. City Manager Martin suggested that the item be listed on the workshop agenda for 11:00 a.m. at which time discussion can be conducted on the technical issues and that the ordinance enacting the increased rates be on the agenda for the next week's afternoon agenda. The motion to delay action until the following week and to allow Athena's representatives and Touche-Ross representatives to address the Council during the workshop meeting passed by those present and voting. * * * * * * * * * * * * * * * Mayor Jones called for the City Manager's report. City Manager Martin stated that he would like to remind the Council that they had been invited to a barbeque at the Gas Division Office on Tuesday, July 3, 1984. City Manager Martin then referred to the petitions that had been received in the Office of the City Secretary on Friday, June 22, 1984. He explained that the two petitions request a Charter Amendment Election on two issues as follows: (1) basically request the elimination of leases of more than five years without a referendum; and (2) the other petition contains language having to do with utility funds and prohibiting the transfer of those funds after August 15, 1984 to the General Fund. He explained that the procedure would be for the City Secretary to perform the task of verifying whether or not there are enough signatures of registered voters to require an election. He explained that such an ordinance calling an election must be passed 30 days prior to the election and informed the Council that the next available days for elections for municipal governments are August 11, 1984 and January 19, 1985. He explained that if the City Council decided to call such an election for August 11, 1984, and if that ordinance was to be on a three -reading basis, then the ordinance should have been on the agenda today. He explained that if the Council wished to declare an emergency and pass the ordinance calling the election on an emergency basis, it must be called by July 10, 1984, which would require validating the signatures on the petitions prior to that time. Ainutes Regular Council Meeting June 26, 1964 Page 29 Mr. Martin continued by stating that the question is that the Council needs to decide, one, how many readings of the ordinance should be required and two, what procedure they want the City Secretary to take in verifying the signatures on the two petitions. He also pointed out that at this time the City Council has a task force as one of the committees under Corpus Christi '90 that is studying Charter Amendments and pointed out that if in fact the Charter is amended by passage of one of these proposed changes, it cannot be amended again for two years. Mr. Martin summarized by stating that the two issues before the Council are: (1) how many readings the ordinance should have and (2) how they want the City Secretary to proceed to validate the petitions. City Secretary Read explained that the law provides that it is the City Secretary's duty to validate the signatures on a petition and, until very recently, every signature on a petition had to be verified. He informed the Council that a few years ago, legislation was passed to allow random verification of petitions under certain conditions. He stated that in 1978 and 1980, the City Secretary's Office used the random validation process. He stated that he would like to point out to the Council there are many differences in these two petitions and those petitions. He stated that those petitions presented in 1978 and 1980 were well prepared and contained the printed names of each individual as well as the voter registration number. He stated in one case, the presenters of the petition had actually validated all of the signatures themselves and at that time he was very comfortable in using the random verification. He also noted that those petitions were current with the time they were submitted. He explained that the difference in these petitions and those is that some of these petitions are dated as far back as September of 1983. He stated that in 1980 they did the same thing in that the petitions were in good order, had names of those signing the petition printed and had the voter registration numbers which made it quite simple to conduct a random validation. Mr. Read continued by stating that he had no idea whether or not there were enough petitions presented, stating that one petition had 6,538 names and the other had 6,627 names. He explained that as of this date, 6,291 signatures are required which represents 5% of the number of registered voters in the City. He stated that in order to verify these petitions, he would have to have full-time people on the validation process. He then explained the procedure for verifying that the signers of the petition are registered voters. Mayor Jones then asked for a report as to how long it will take to validate the petitions. City Manager Martin informed the Council that in 1982 when the petitions were received on compulsory binding arbitration, the ordinance was read on three readings as it was in 1978. Mr. Read interjected that if the ordinance calling the election was to be on a three -reading basis, the first reading should have been on the agenda today. Council Member Mendez indicated that he was of the opinion that all of the names should be verified. linutes Regular Council Meeting June 26, 1984 Page 30 City Secretary Read asked the Council for direction and inquired if they preferred that it be on a random basis or if every name should be checked. He informed the Council that the Commissioner's Court passed a motion that they intend to call an election for August 11, 1984 on the petition they had received, but at the same time they authorized overtime pay for six extra people to work on verifying their petition and the City has received two petitions and almost the same number of signatures would be required for each one. Council Member Kennedy pointed out that the Taxpayer's Association is intent on saving the City money and he did not feel they would want the City to employ alot of people to verify signatures. Council Member Slavik stated that she would like to have the ordinance calling the election passed on one reading. Mayor Jones called for comments from the audience. Mr. J. E. O'Brien, 4130 Pompano, pointed out to the Council that the United States Constitution guarantees the right of petitions. He stated that he had contacted the Secretary of State's Office and they informed him that they will see that the signatures on the petitions are checked. He also stated that they had informed him that there is no provision that requires three -readings of an ordinance calling the election. He stated that in comparing this governing body with another governing body, i.e., Nueces County, he stated that they had turned in their petition to the County and the County Clerk stated that she could validate them in approximately one week. He expressed the opinion that a week or ten days should be sufficient time to validate the signatures on the two petitions presented to the City Secretary's Office. He stated that the City Secretary has given them no time frame as to when the petitions will be verified. He also took exception to the fact that Mr. Read had been informed that the petitions were going to be presented on either the 21st or 22nd and the City Secretary went on vacation. He informed the Council that they expect an August llth election on the petitions to amend the City Charter and if it is not conducted on August 11, they have other actions that they are prepared to take. City Secretary Read took exception to some of the allegations made by Mr. O'Brien and stated that he had never told him or anyone else that he could not verify the petitions. He stated that the County Clerk had informed him that she would attempt to have the signatures validated in time to call the election, but six extra people would be placed on the validation procedure full time. He also stated that the City has always accepted supplements to the original petitions and he has never given any statement to the effect that that could not be done. Mayor Jones then requested that the City Secretary provide the Council with an estimate of the time it would take to validate the petitions by the next Council meeting which would be on July 3, 1984. There being no further business to come before the Council, on motion by Council Member Kennedy, seconded by Council Member McComb and passed unanimously, the Regular Council Meeting was adjourned at 9:20 p.m, June 26, 1984.