HomeMy WebLinkAboutMinutes City Council - 01/27/1982(
MINUTES )e,
CITY OF CORPUS CHRISTI, TEXAS
REGULAR COUNCIL MEETING
JANUARY 27, 1982
8:30 A. M.
PRESENT:
Mayor Luther Jones
Council Members:
Jack K. Dumphy
Bob Gulley
**Herbert L. Hawkins
* Dr. Charles W. Kennedy
Cliff Zarsky
ABSENT:
Mayor Pro Tem Betty N. Turner
Ass't. City Manager James K. Lontos
City Attorney J. Bruce Aycock
City Secretary Bill G. Read
Mayor Luther Jones called the meeting to order in the Council
Chambers of City Hall.
The invocation was given by Reverend Jess White of Glad Tidings
Assembly of God, following which the Pledge of Allegiance to the Flag
of the United States was led by Council Member Jack Dumphy.
In the temporary absence of City Secretary Bill G. Read, Acting
Assistant City Secretary Dorothy Zahn called the roll of required Char-
ter Officers and verified that the necessary quorum was present to conduct
a legally constituted meeting.
A motion was made by Council Member Dumphy, seconded by Council
Member Gulley, and passed unanimously that the Minutes of the Special
Council Meeting of January 6, 1982 and the Regular Council Meetings of
January 6 and January 13, 1982 be approved as presented.
* * * * * * * * * *
Mayor Jones called for the City Manager's Reports.
Assistant City Manager James K. Lontos presented the following
items with related comments and explanations and recommended that:
1. A public hearing be held February 24, 1982, on the adoption of both
a Sanitary and Storm Sewer Master Plan for an approximate six
square mile area along FM 624 west of Highway 77. The plans were
prepared by Naismith Engineers, Inc. under contract to the City and
are basically an extension to currently adopted plans east of the
area. Existing developments such as Wood River, River Hills, Valley
View and Quail Valley are within the areas of the Master Plans. Both
plans were presented to and approved by the Planning Commission on
January 19, 1982.
MLBQ JLMED
SSP i 91484
January 27, 1982
Page 2
* Council Member Charles W. Kennedy arrived at the meeting at
8:40 a.m.
** Council Member Herbert Hawkins arrived at the meeting at 8:41
a.m.
In regard to item 1, Council Member Zarsky requested copies of the
plan and maps prior the public hearing.
Assistant City Manager Lontos explained the drainage and sewer
plans for this area, which will be designed to assure that no pollution
will enter the river since there will be no sewer intake above the Nueces
River intake.
City Attorney J. Bruce Aycock inquired if notices will be sent to
residents of these areas and Mr. Lontos replied that there will be no
notices sent in regard to this. He explained that his Staff is still
working on a policy to notify property owners of various public hearings.
He pointed out that there are six square miles affected by this change.
Mr. Lontos stated that the Staff will place notices on public buildings
and schools in the area.
Discussion followed on appropriate drainage for this area.
Council Member Gulley noted that Nueces County has some problems
in that area and suggested that their plans need to be coordinated with
the City's.
Assistant City Manager Lontos assured the Council that he will pro-
vide the County with a copy of the map and plans for this area.
2. A contract for $54,549.45 be awarded to Preis Properties, d/b/a
Coastal Bend Sales, for repair of Hurricane Allen damage to the Oso
Fishing Pier. Repairs include restoring the pier, located on Ocean
Drive near the Naval Air Station, to its original elevation before the
storm. The timber pier will be reconstructed in two sections with a
total length of 525 feet and a width of 7 feet. Four shelter bays will
be reconstructed. Preis Properties is the second low bidder. Award
to the low bidder, Harbor Company of Robstown, is not recommended
due to unsatisfactory performance on a previous contract at the
Airport. An appropriation of $62,000 is needed for contract award
which includes approximately $52,000 from FEMA and $10,000 from the
Park bond funds.
Assistant City Manager Lontos explained that the Staff is recom-
mending award of bid to the second low bidder on this project; the low
bidder, Harbor Company of Robstown, performed some work at the Airport;
Minutes
Regular Council Meeting
January 27, 1982
Page 3
it seemed to be satisfactory; but the City had a large number of problems
with the company in that they required more days than was anticipated.
He stated that the Staff was very unhappy with the way this company
operated at the Airport; therefore, the Staff is recommending that the
bid be awarded to the second low bidder.
Council Member Gulley stated that he understood -that there are
some problems with the roof, the carpeting, air conditioning and other
things at the Airport and inquired if that was the fault of the architect.
Mr. Lontos explained that he did not feel that they are serious
problems and pointed out that there are always some problems after a
project is completed and they hope to resolve the problems at the Airport.
3. 10 acres of vacant land (Parcel 1) be acquired from the Catholic
Diocese for future expansion and protection of the 0. N. Stevens
Water Treatment Facility. This parcel is located on Hearn Road just
north of Brooklane Drive between Five Points and Callicoatte Road.
An appropriation of $95,775 from the Water System Bond Construction
Fund is recommended including $92,750 for acquisition, $2,275.53 for
appraisal services for Parcels 1 and 2 by Mr. John A. Erickson and
$749.47 for closing costs. The acquisition is based on Mr. Erickson's
appraisal. Parcel 2 is the Tucker property recently discussed with
Council on which an additional report will be forthcoming in 2-3
weeks.
Assistant City Manager Lontos referred to the proposed acquisition
of the 26 -acre tract known as the Tucker Property which was discussed
with the Council recently. He stated that the Staff is still working on
alternate plans for the acquisition of Parcel 2. He explained that they
have discussed the possibility of moving the house towards the front of
the property and possibly acquiring a smaller portion of the tract. He
stated that the developer has plans to develop the land for a residential
subdivision and the City may be faced with a large amount of damages.
In regard to Parcel 1 which is recommended for acquisition, Mr. Lontos
assured the Council that this is vacant property and stated that the
recommended purchase price is the exact appraisal.
* * * * * * * * * *
Minutes
Regular Council Meeting
January 27, 1082
Page 4
Mayor Jones interupted the presentation of the City Manager's
Reports in order to conduct the bid opening on the following project
which was scheduled for 9:00 a.m.:
West Oso Outfall Box Culvert crossing at Old Brownsville Road. The box
culvert will be an 8' by 6' structure which will later be supplemented by
another box of equal size as the area develops. The City is committed to
construct this crossing as part of the agreement with Sitterle approved by
the City Council on May 6, 1981. The agreement pertains to the
development of a 113 -acre business park bounded by S. Padre Island
Drive, Bear Lane and Old Brownsville Road. The Sitterle contractor has
begun off-site drainage work on the West Oso Outfall drainage channel
wherein the box culvert will be constructed. The State Department of
Highways and Public Transportation has indicated that they will construct
steel guard rails at the structure.
Assistant City Manager Lontos opened bids on this project from
the following firms: Goldston Corporation; Heldenfels Brothers; E. J.
Netek,Construction Company; and Civil Constructors, Inc of Katy, Texas.
Mayor Jones expressed appreciation to the bidders who had submitted
bids and stated that the bids will be tabled for 48 hours, pursuant to
the requirements of the City Charter, and referred to the Staff for
tabulation and recommendation.
Mr. Lontos continued with the City Manager's Reports and presented
the following items:
4. Purchase of a new engine for Unit 2193 or 1975 Wayne three -wheel
street sweeper be noted., The unit's engine requires major overhaul
estimated to cost $6,418.98. Cost of engine replacement is $6,200
which is less than the overhaul of the old engine. Engine installation
will be done by the City Service Center.
5. Bids be received February 16, 1982, for a twelve months supply
agreement for approximately 620,000 pounds of hydrogen peroxide for
the Wastewater Services Department. The chemical is used for odor
and corrosion control and in line treatment at the Broadway and
Westside Treatment Plants and the McArdle trunk main.
* 6. The property at 613 So. Shoreline Blvd. (former Tourist and
Convention Bureau Bldg.) be leased to Ribs and Beef, Inc. for a
barbecue restaurant for a term of three (3) years at a monthly rental
of either $725 with a 10% annual escalation clause or 4% of the gross
sales less sales tax whichever is greater with said lease subject to a
sixty-day cancellation clause in case of sale of the property. Four
bids were received.
is item was withdrawn from consideration
Minutes
Regular Council Meeting
January 27, 1982
Page 5
Assistant City Manager Lontos explained to the Council that he
had received a call from Mr. Heffler who withdrew his bid on behalf of
Ribs N Beef, Inc. because they felt that they would have to spend too
much money to operate this business and they hesitated to do this consi-
dering the fact that the Council has the prerogative to cancel the lease
with only 60 days notice.
Council Member Gulley stated that he was under the impression that
at the time the building for the Tourist Bureau was donated to the City,
there were provisions in connection with how the building should be used.
City Secretary Read explained that the provision was that the building
was to be retained by the City but he did not recall any other provision •
in connection with the donation.
Mayor Jones suggested that the lease be examined to be sure that
there were no other provisions.
7. Bids be received February 23, 1982 for the sale of Lots 5 and 6 and
a 10' wide strip adjoining the west portion of Lot 6, Block 6, Hampton
Addition (110' x 150' total land area) located at 823 Furman Avenue.
This property was acquired by the City on November 24, 1959 from
the Childrens Services Board as a gift. It has been rented to the
Nueces County MH -MR since February 9, 1972. The property is
located on Furman Avenue between S. Staples Street and S. Tancahua
Street. On December 9, 1981, the City Council approved the concept
of selling the property with the proceeds to be used by MH -MR
toward the purchase of the old American Legion Building adjacent to
the Center's offices at 1626 South Brownlee.
8. A micro -computer system be purchased from Van Horn Office Supply
Co., Van Horn, Texas for the Water Division on the basis of best bid
of $7,580. The apparent low bid of $6,960 by Copy Distributing
Company is on equipment which is not compatible with the equipment
purchased for the Health Department. Both activities plan to share
common programs. The Commodore unit offered by Copy Distributing
would require separate programs with costs exceeding the $620 price
difference. Bids were received from four firms. Price comparison
shows a decrease of 15% over the purchase of a similar computer for
the Health Department laboratory approximately a year ago. The
Water Division will use the computer, which is included in the 1981-82
Budget, to develop procedures to obtain the most effective pump
combinations, establish chemical feed rates for different raw water
conditions and demand rates for more effective chemical use, develop
statistical data for reports made to various agencies and automate
meter and tap records.
9. Bids be received February 23, 1982 for six replacement refuse trucks
for use by the Sanitation Division. The trucks will be
diesel -powered.
Minutes
Regular Council Meeting
January 27, 1982
Page 6
10. Bids be received February 16, 1982 for a one-year contract for field
tire repair service for City -owned equipment to supplement service
provided by the Maintenance Services department. The contract will
establish unit prices for approximately 4,235 tire repairs.
11. Bids be received February 23, 1982 for repalcement pickup trucks
and vans for the various City activities as follows:
a. 3 compact pickups for Maintenance Services and the Sanitation
Division.
b. 16 1 -ton pickups for Street, Park and Recreation, Water,
Vector, Animal and Air Pollution Control, Gas, Marina, and
Wastewater Services.
c. 4 3/4 -ton pickups for the Park and Street Divisions and the
Warehouse
d. A one ton pickup for the Gas Division.
e. 3 vans for the Fire, Police and Traffic Engineering Departments
Bids will be evaluated on the basis of price and estimated fuel costs
over a five-year period on the basis of EPA gas mileage ratings,
gasoline at $1.50 per gallon and mileage at 15,000 miles per vehicle
per year.
Council Member Gulley deviated from the consideration of the City
Manager's Reports to read the resolution/letter from the Southside
Kiwanis Club expressing support of Mayor Jones' position in connection
with the acquisiton of land to protect the Naval Air Station. :Ie objected
to the premise that the Council was considering moving the airfield. He
stated that the Council is concerned about keeping the Navy here but they
recognize their responsibility to all citizens of the City.
12. The deferred compensation plan for City employees be amended as
follows:
a. Set the maximum contribution at $7,500 or 33 1/3% of includible
income whichever is less
b. Add a "catchup" provision allowing an employee in any one or
more of the last three years prior to retirement to make an
additional contribution not to exceed a total of $15,000 if he has
not made the maximum contribution in the prior years.
c. Allow the employee to elect the method of distribution of benefits
when he first becomes eligible for benefits. Currently the plan
requires an employee to make an irrevocable selection of how the
benefits will be distributed upon his entering the plan.
d. Allow entry to the plan or c:hanges in contribution levels in the
beginning of any month. Currently, entry or changes are
allowed only at the beginning of the year.
These attachments are recommended so that the plan will conform to
the Internal Revenue Service Code.
Minutes
Regular Council Meeting
January 27, 1982
Page 7
Mayor Jones inquired if this represented any cost to the City.
Mr. Chuck Speed, Director of Personnel, assured the Council that
there would be no cost to the City and explained that this amendment is
to comply with the recent changes in the Internal Revenue Service Code.
He explained the changes listed in the agenda item.
Council Member Hawkins inquired as to why this change in the com-
pensation plan was not delayed until the new budget was considered to
be used as a part of the collective bargaining procedures.
Mr. Speed explained that this has never been a part of negotiation
procedures since it is not considered to be a benefit and the change is
just to comply with the Code.
Council Member Gulley stated that he is concerned that the City
employees should have the best retirement plan possible, but he did not
want to approve something that might become a burden on taxpayers in the
future.
Mr. Speed stated that the Staff appreciates his concern but explained
that many hours are spent considering these requests and the Staff never
recommends any changes that would create future expenses. He pointed
out that this City's retirement program is certainly not the best one
in Texas, and there are a number of cities that have much better benefits
than the City of Corpus Christi. He again assured the Council that the
Staff is not obligating citizens in the future.
City Attorney Aycock pointed out that there will be no additional
cost to the City if this is approved and the only cost would be adminis-
tration time to handle the program.
Discussion followed in regard to the City's retirement system.
City Secretary Read referred to the item before the Council and
pointed out that this is not the retirement system since it is taken
out of each employee's salary and is their choice for a retirement pro-
gram which is similar to the IRA.
Council Member Kennedy referred to an article in the newspaper in
regard to former City Manager Marvin Townsend's retirement and the fact
Minutes
Regular Council Meeting
January 27, 1982
Page 8
that it would be necessary for him to work one day during 1982 in order
to retain his benefits.
Mr. Speed explained that in the process of negotiation with the
firefighters, the Staff was under the impression that any employee who
wanted to participate in the program would have to be employed for a
certain period of time in 1982. He stated that they have since become
aware that an employee could just decline to withdraw his funds from the
system, therefore, it is no longer necessary for an employee to still be
employed by the City in order to collect their benefits.
Council Member Kennedy inquired as to the date that Mr. Townsend's
vacation will expire and Mr. Speed replied that it will be about the
middle of June.
Mayor Jones called for comments from the audience on the City
Manager's Reports.
Mr. John Stensland, 337 Primrose Drive, referred to item llb, which
recommends that bids be received for replacement pickup trucks for several
divisions, including the Marina. He inquired about the source of funds
for this vehicle.
Mr. Lontos stated that it would be from the general fund, not the
Marina fund.
Mr. Stensland stated that he objected to having Marina funds spent
for a pickup truck.
Mayor Jones pointed out to Mr. Stensland that the rental on Marina
boat slips is much cheaper in this City than in the surrounding communities
He suggested that the Marina Board consider higher rates moreAin line to
those in nearby cities. He stated that he realized that the rates were
increased during this budget year but requested a comparison of the City's
rates with that of other cities.
Mr. Stensland explained that the Marina Board has recommended the
increase of lease rentals in order to pay expenses and pointed out that
at this time, the pleasure boat rate is average as compared to other
cities; they recommended raising rates on charter boats and work boats;
and the Marina Advisory Board is attempting to keep up with rates charged
h" other cities. He expressed the opinion
that the Marina Advisory Bn"rd
Minutes
Regular Council Meeting
January 27, 1982
Page 9
did not feel that rates should be increased so much that no one but wealthy
people could afford the slip rentals.
Assistant City Manager Lontos stated that he wanted to correct his
previous statement in regard to the purchase of the pickup truck for the
Marina. He stated that rather than from the General Fund, the pickup truck
will be purchased out of the operating fund of the Marina.
Council Member Kennedy asked about the possibility of putting some
type of temporary gasoline service at the Marina.
Mr. Stensland explained that the Staff is waiting for a proposal
from a private source to provide office space for the Marina in their
building as well as a gasoline station.
Mr. Lontos explained that before a service station could be in oper-
ation, it would be necessary to tear out the pumps and storage tanks and
this cannot be done until FEMA has approved this work. He explained that
they have recently approved the rebuilding of the baitstand and the
Kiwanis Park renovation but the City cannot go into the gasoline business
until FEMA has approved it.
Council Member Kennedy again inquired if a floating type of gasoline
service station could be provided.
Mr. Lontos indicated that this will be investigated.
Council Member Gulley expressed the opinion that the boat slip
rental rates should be increased somewhat but not priced so high that it
would be prohibitive for citizens to have their boats docked there.
Mr. Stensland concurred with this remark and stated that the Advisory
Board did not feel that the Marina should be operated strictly for wealthy
people, and as long as the City can pay expenses with the current rates,
he was of the opinion that the rates should be kept reasonable.
Mayor Jones stated that he had received a telephone call from Mr.
Leon Loeb, Jr. about his boat having been moved, stating that he had also
informed him that he had subleased the slip.
Mr. Stensland explained the limitations on subleases.
Mr. Stensland also stated that the ordinance has helped the Marina
Supervisor control use of the slips and the subleasing which was under
question.
Minutes
Regular Council Meeting
January 27, 1982
Page 10
Mayor Jones stated that if the Marina Superintendent has difficulty
in enforcing the ordinance, then the Council should know about it. He
$
asked that a Staff report be provided on this particular complaint.
Assistant City Manager Lontos stated that Mr. Tom Utter is investi-
gating this incident and information will be provided the Council.
There were no further comments on the City Manager's Reports.
A motion was made by Council Member Zarsky that the City Manager's
Reports, items 1 through 12, with the exception of item 6 which was with-
drawn, be approved; seconded by Council Member Hawkins and passed by the
following vote: Jones, Hawkins, Kennedy and Zarsky,voting "Aye"; Turner,
absent from the meeting; Dumphy and Gulley, absent from the Council Chamber
at the time the vote was taken.
Mayor Jones called for the ordinances.
Assistant City Manager Lontos explained the ordinances on the agenda
and informed the Council that the ordinance authorizing the annexation
contract between the City and Allied Development Company will be withdrawn
because there are some problems with the contract.
Mayor Jones ascertained that no one in the audience wished to comment
on the ordinances; City Secretary Read polled the Council for their votes;
and the following ordinances were passed:
FIRST READING:
AMENDING ORDINANCE NO. 13193 APPROVING A RATE SCHEDULE FOR THE
RENTAL, SALE, AND MAINTENANCE OF CABLE TELEVISION CONVERTERS TO
SUBSCRIBERS OF COMMUNITY ANTENNA TELEVISION SERVICES WITHIN THE
CITY OF CORPUS CHRISTI BY ATHENA CABLEVISION OF CORPUS CHRISTI,
INC.; PROVIDING FOR PUBLICATION.
The foregoing ordinance was read for the first time and passed to its second
reading by the following vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and
Zarsky voting, "Aye"; Turner, absent.
SECOND READING:
AMENDING THE CORPUS CHRISTI CITY CODE, AS AMENDED BY ADDING TO
SECTION 36-89 A SUBSECTION N, ADOPTING RENTAL FEES FOR DISHES
GLASSES, AND FLATWARE AT THE CONVENTION CENTER. (First Reading -
1/20/82)
The foregoing ordinance was read for the second time and passed to its third
reading by the following vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and
Zarsky voting, "Aye"; Turner, "absent".
tutes
__.;gular Council Meeting
January 27, 1982
Page 11
SECOND READING:
AUTHORIZING THE CITY MANAGER TO EXECUTE A SUPPLEMENTAL LEASE
AGREEMENT WITH THE DEPARTMENT OF TRANSPORTATION, FEDERAL
AVIATION ADMINISTRATION, TO LEASE NUMBER DOT-FA76SW-1198, BY
WHICH THE FEDERAL AVIATION ADMINISTRATION WILL PERMANENTLY
RELINQUISH FORTY (40) PARKING SPACES FOR USE BY THE CORPUS
CHRISTI INTERNATIONAL AIRPORT AND THE HENCEFORTH REDUCE THE
ANNUAL RENT BY $1,863.60 PER ANNUM FOR THE REMAINING NINE (9)
YEARS OF THE LEASE, ALL AS SHOWN IN EXHIBIT "A", A SUBSTANTIAL
COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF. (First
Reading - 1/20/82).
The foregoing ordinance was read for the second time and passed to its third
reading by the following vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and
Zarsky voting, "Aye"; Turner, "absent".
THIRD READING - ORDINANCE NO. 16836:
AMENDING THE CORPUS CHRISTI CITY CODE, AS AMENDED BY AMENDING
SECTION 53-252, SCHEDULE III - PARKING PROHIBITED AT ALL TIMES ON
CERTAIN STREETS, BY DELETING THE FOLLOWING:
SOUTH ALAMEDA STREET, BOTH SIDES, FROM HOFFMAN STREET TO A
POINT 300 FEET SOUTH OF TEXAN TRAIL.
SOUTH ALAMEDA STREET, BOTH SIDES, FROM MIRAMAR PLACE TO A POINT
300 FEET SOUTHEAST OF THE II'TERSECTION OF AVALON STREET.
SOUTH ALAMEDA STREET, NORTH SIDE, BETWEEN MONTCLAIR DRIVE AND
COUNTRY CLUB DRIVE.
SOUTH ALAMEDA STREET, SOUTH SIDE, BETWEEN PARADE DRIVE AND
OCEAN DRIVE.
AND IN LIEU THEREOF ADDING:
SOUTH ALAMEDA STREET, BOTH SIDES, FROM SOUTH LOUISIANA PARKWAY
TO OCEAN DRIVE.
AND AMENDING SECTION 53-253, SCHEDULE IV, STOPPING, STANDING OR
PARKING PROHIBITED DURING CERTAIN HOURS ON CERTAIN STREETS, BY
ADDING THERETO:
BAHAMA DRIVE, BOTH SIDES, FROM WEBER ROAD TO MANHATTAN DRIVE -
BETWEEN 9:00 A.M. AND 3:00 P.M. - SCHOOL DAYS ONLY. (First Reading -
1/13/82, Second Reading - 1/20/82)
The foregoing ordinance was read for the third time and passed by the
following vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and Zarsky voting,
"Aye" Turner, absent.
\ ORDINANCE NO. 16837:
AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH PREIS
PROPERTIES, d/b/a/ COASTAL BEND SALES, FOR REPAIR OF HURRICANE
ALLEN DAMAGE TO THE OSO FISHING PIER; APPROPRIATING $62,000 OUT OF
THE NO. 291 PARK BOND FUND OF WHICH $54,549.45 IS FOR THE
CONSTRUCTION CONTRACT AND $7,450.55 IS FOR ADDITIONAL
ENGINEERING, LEGAL ADVERTISING, CONTINGENCIES AND RELATED
EXPENSES APPLICABLE TO PROJECT ' NO. 291-77-16, OSO FISHING PIER
REPAIRS (HURRICANE ALLEN); AND DECLARING AN EMERGENCY.
The Charter Rule was suspended and the foregoing ordinance passed by the
following vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and Zarsky voting,
"Aye"; Turner, "absent".
Mi nutes
Regular Council Meeting
January 2T, 1982
Page 12
ORDINANCE NO. 16838:
AUTHORIZING THE CITY MANAGER TO EXECUTE DOCUMENTS NECESSARY
FOR THE ACQUISITION OF A 10 -ACRE TRACT IN CONNECTION WITH THE
FUTURE EXPANSION OF THE O. N. STEVENS WATER TREATMENT PLANT,
,/'PROJECT NUMBER 205-81-4; APPROPRIATING OUT OF THE WATER SYSTEM
BOND CONSTRUCTION FUND THE SUM OF $95,775 OF WHICH $92,750 IS FOR
THE ACQUISITION AND $3,025 IS FOR APPRAISAL SERVICES FOR TWO
PARCELS AND INCIDENTAL COSTS RELATED TO CLOSING; AND DECLARING
AN EMERGENCY.
The Charter Rule was suspended and the foregoing ordinance passed by the
following vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and Zarsky voting,
"Aye"; Turner, "absent".
ORDINANCE NO. 16839:
AMENDING THE DEFERRED COMPENSATION PLAN FOR CITY EMPLOYEES,
ORDINANCE 13405, BY SPECIFYING THE MAXIMUM AMOUNTS WHICH MAY BE
DEFERRED UNDER THE PLAN; CHANGING THE TIMES AT WHICH EMPLOYEES
MAY JOIN THE PLAN; ALLOWING EMPLOYEES TO CHANGE THE METHOD OF
DISTRIBUTION; AND DECLARING AN EMERGENCY.
The Charter Rule was suspended and the foregoing ordinance passed by the
following vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and Zarsky voting,
"Aye"; Turner, "absent".
Mayor Jones called for discussion of current concerns and the
status of pending items.
Council Member Kennedy stated that he had attempted to contact
Mr. John Keeling with the firm of Loventhol & Horwath. He stated that
he had discussed the decisions with members of that firm that the Council
was confronted with in regard to approving inducement resolutions for
financing for outlying hotels through the use of "IRBs" and what effect
such a practice would have on the establishment of hotels in the down-
town area. He stated that he had also discussed with them the possibility
of actions to encourage the large hotels to locate downtown in the City
of Corpus Christi. He stated that the gentleman he talked with indicated
that he would have a supplemental report for the Council. Dr. Kennedy
stated that he had discussed the alternative financing and the ramifi-
cations the use of the "IRBs" would have on large hotel development.
Minutes
Regular Council Meeting
January 27, 1982
Page 13
He also stated that the Council had received a letter from Mr. Hob Conwell
on the amount of income revenue being produced by the Convention Center.
He pointed out, however, that there is a loss of convention bookings
because of the fact that the City does not have enough hotel rooms. He
suggested that a professional group such as Loventhol & Horwath be re-
quested to make a presentation to the City Council in regard to hotel
financing. He stated that the Council would need to determine the exact
cost of such a presentation and suggested that this be scheduled for a
special evening meeting. Dr. Kennedy informed the Council that the
tentative date suggested for_this presentation was Monday, February 15,
1982, provided the Council decides to proceed to allow this presentation.
He suggested that the Staff contact this company to determine the cost.
He explained that he had discussed costs with the firm and an estimate
of a presentation on the hotel issue which would require 8 hours of
preparation would be approximately $640, and the other matter in regard
to "IRBs", land mass and alternative financing would be approximately
$800. He expressed the opinion that for less than $2,000, the Council
could hear the entire report and he recommended that this be approved.
Mayor Jones agreed that the Council should issue a directive to
the Staff to investigate this. He stated that he had made a trip to
Hershey's and discussed their contemplated hotel here in Corpus Christi.
He stated that they had informed him that they would like to have an
updated Loventhol Report. He therefore agreed with Dr. Kennedy that
the City should contact that firm in regard to the cost of updating
their report.
Dr. Kennedy pointed out that the updated report suggested by Mayor
Jones would cost more than the presentation he had suggested.
Council Member Gulley stated that it was his understanding that
this City does not have a major hotel interested in locating here be-
cause they do not have the money or they cannot obtain the financing.
He inquired as to how a study would offset those problems.
6
Minutes
Regular Council Meeting
January 27, 1982
Page 14
/ Mayor Jones stated that the reason the hotels are not interested
is because the local hotel rates are too low and interest rates are too
high.
Council Member Kennedy stated that he felt that what the Council
neeced to know is if the "IRB" financing for outyling hotels will deter
the possibility of attracting large hotels to the downtown area. He
stated that he also felt that any City assistance for small hotels needed
to be evaluated.
Mayor Jones stated that while he was visiting with the Hershey
representatives, he also talked to ALCOA, which is beginning to invest
money in hotels and the real estate business. He stated that they agreed
the average room rate in Corpus Christi was low and this is having an
effect on hotels which might be interested in locating here. He stated
that at the time he was there,•he suggested that ALCOA and Hershey discuss
financing with the City of Corpus Christi, and if an updated Loventhol
Report indicates that higher rates for rooms were possible here, they
would be willing to construct a large hotel.
Mayor Jones commented that an investor from the Phillipines has
purchased a great deal of land on the bayfront and he has hurt this City
by purchasing so much land unless it is developed.
Council Member Dumphy suggested the possibility of reexamining the
taxes on that property to ascertain if they are in line with the asking
price.
A motion was made by Council Member Kennedy that the Staff contact
Loventhol & Horwath about the possibility of providing a report on hotel
financing on Monday night, February 15, 1982, for a cost not to exceed
approximately $2,000 for either one or two representatives to address
the Council. The motion was seconded by Council Member Hawkins and
passed unanimously by those present and voting.
Mayor Jones called for discusion of the schedule of speaking
engagements by the Council Members in support of the February 20 Bond
Election.
Minutes '
Regular Council Meeting
January 27, 1982
Page 15
Mayor Jones mentioned the Harvey Weil lawsuit and inquired about
the possibility of a closed session to discuss this subject.
City Attorney Aycock stated that he felt that this would be helpful
and agreed that next Wednesday would be satisfactory.
Council Member Hawkins stated that he has been asking for a report
on the transit system; his request has still not been addressed; and
stated that he wants to know from the City Attorney if, he can file charges
in accordance with the Freedom of Information Act. He stated that it is
a very serious problem when the Council's requests are ignored and stated
that he has had no response at all to his request.
City Attorney Aycock explained to Mr. Hawkins that the Freedom of
Information Act applies only to the Federal Government, but the City does
comply with the State's Open Meeting Law. He stated it was his under-
standing the Transit report is being prepared and will be available very
soon.
Mayor Jones pointed out -Co Mr. Hawkins that his accusation that the
Staff is deliberately withholding information from the Council is simply
not true because the Staff has responded to every Council request for
information, and that Mr. Hawkins' suggestion that he must resort to
invoking the Freedom of Information Act is ridiculous. He 'suggested to
Mr. Hawkins that he visit the Transit Office to find out what he needed
to know.
Council Member Hawkins stated that he did not always agree with
all of the Members of the Council and he did not believe that it was
proper or ethical for the kayor to criticize him. He expressed the
opinion that the report he requested is available and has been for seven
months but the Staff has refused to provide it to him. He stated that
he\has written down other requests that Council Members had made that
are not being complied with and he will not stop until the Council is
provided with the information as requested. '
Minutes
Regular Council Meeting
January 27, 1982
Page 16
/Council Member Gulley inquired of Mr. Lontos if there was actually
/ a report that had been available for seven months.
Mr. Lontos replied that he has requested Mr. Tom Stewart, Director
of Traffic & Transit, to prepare this report and it was his understanding
that these reports were to be available for the Council on February 17, .
1982, prior to the public hearing. He stated that if the report is
available now, he will provide a copy as soon as possible.
Council Member Hawkins stated that Mr. Stewart had informed him at
the time the public hearing was set that the report had been prepared
and he would provide it for Mr. Hawkins.
Council Member Kennedy referred to the problems that some people
are having in regard to their not being allowed to rebuild a hunting
camp.
Mayor Jones suggested that this be listed as a discussion item
next week.
Council Member Kennedy suggested that an agenda item be prepared
to discuss the direction that AID Ambulance System should take. He
stated that the entire process should be studied in depth, primarily in
relation to the transfer of non -emergency patients which the Medical
Society is recommending be discontinued.
* * * * * * * * * *
i
Mayor Jones called for petitions from the audience on matters not
scheduled on the Agenda.
City Secretary Read asked about the Council's plans to attend various
dinners and events. He then stated that he will be out of the City for
two days attending an Election School in San Antonio.
Mr. Lewis Lovelace, representing the Corpus Christi Taxpayers'
Association, referred to the action taken by the Council on January 14,
at which time they designated the sparkling bayfront as a "blighted
area". He suggested that the entire City be designated as a blighted
area in fairness to all areas of the City.
Mayor Jones stated that it was his understanding that the Council
could declare the entire City as an eligible blighted area for the pur-
, pose
approving financing through the use of "IRBs".
Minutes
Regular Council Meeting
January 27, 1982
Page 17
Mr. Lovelace stated that designating only two areas as blighted
areas prevents other citizens from taking advantage of tax-exempt bonds.
Discussion followed on this subject.
Council Member Gulley asked the Staff to determine what interest
rates were on regular legitimate municipal bonds at this time.
Mr. J. E. O'Brien, also of the Taxpayers' Association, explained
that the average price of municipal bonds as of January 15, 1982 was
13.44%.
Assistant City Manager Lontos informed the Council that he had an
update of information in regard to the matter referred to earlier in the
meeting in connection with the moving of Mr. Loeb's boat. He explained
that Mr. Loeb's boat was not moved on December 31, 1982, but it was tagged
to inform him that the slip rental had not been paid. He stated that
t
Mr. Loeb was contacted on January 11 in a further attempt to obtain the
rental, and after no action was taken by Mr. Loeb, the boat was moved
and chained but no charges have been filed against him.
* * * * * * * * * *
There being no further business to come before the Council, on
motion bi Council Member Gulley, seconded by Council Member Dumphy, and
passed unanimously, the Regular Council Meeting was adjourned at 11:15
a.m., January 27, 1982.