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HomeMy WebLinkAboutMinutes City Council - 07/02/1991MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting July 2, 1991 2 p.m. PRESENT Mayor Mary Rhodes Mayor Pro Tem Joe McComb Council Members Cezar Galindo Betty Jean Longoria Leo Guerrero Edward Martin Dr. David McNichols Clif Moss Mary Pat Slavik micRofne City Manager Juan Garza City Attorney James R. Bray, Jr. City Secretary Armando Chapa Mayor Rhodes called the meeting to order in the Council Chamber of City Hall. The invocation was delivered by Reverend E. F. Bennett following which the Pledge of Allegiance to the Flag of the United States was led by Council Member Slavik. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Rhodes called for approval of the Minutes of the Regular Council Meeting of June 25, 1991, and there being no corrections, she proclaimed them approved as presented. Mayor Rhodes referred to the Board and Committee appointments and the following appointments were made by the Council: (M91-173) Cable Communications Advisory Committee Civil Service Board/Comm. Alan Stowers - Reappointed A. R. Butch Esobedo - Reappointed Steve Hindman - Reappointed Minutes Regular.Council Meeting July 2, 1991 Page 2 CC Area Convention & Visitors Bureau Sam Poteet - Reappointed Leroy Fulgsang - Reappointed Erich Wendl - Reappointed Al Jones - Reappointed Barbara Shepphard - Reappointed Lillian Murray Transportation Advisory Committee Ben Sley Private Industry Council Joe McComb - Reappointed David Hooper - Reappointed Linda Strong - Reappointed Robert L. Trask - Reappointed Rose Huegele - Reappointed Roy Hinojosa Tim Akard Rosario Carrizo Javier H. Leal Robmae Murray Anita Hinojosa Don L. Roland Jorge Garza - Ex -Officio Mike Carrell - Mayor's Appt. Human Relations Commission Dr. Kate Haltom - Chairman Grandis Lenken - Reappointed Beatrice Lopez - (Youth) Fernando Ortiz - (Youth) Linda Herndon Lisa Holland (Youth) Planning Commission Shirley Mims - Reappointed Michael Karm - Reappointed Alma Meinrath - Reappointed Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 1 thru 8, and Council Members requested that Items 1, 2, 3, 5 and 8 be withheld for discussion. City Secretary Chapa polled the Council for their votes and the following were passed: 4. M91-176 Motion awarding a contract in the amount of $39,425.40 to Lubec Seeding and Erosion Control for the application of hydromulching on finished areas of the Elliott Solid Waste Landfill. Minutes Regular, Council Meeting July 2, 1991 Page 3 The foregoing motion passed by the following vote: Rhodes, McComb, Galindo, Guerrero, Longoria, Martin, McNichols, Moss and Slavik voting, "Aye." 6. RESOLUTION NO. 021185 AUTHORIZING EMINENT DOMAIN PROCEEDINGS BY THE CITY TO CONDEMN FEE TITLE TO A PARCEL OF LAND FOR THE CORONA DRIVE EXTENSION PROJECT AND TO ACQUIRE SAID PARCEL FROM THE OWNERS, MR. AND MRS. WILLIAM R. WARE. The foregoing resolution passed by the following vote: Rhodes, McComb, Galindo, Guerrero, Longoria, Martin, McNichols, Moss and Slavik voting, "Aye." Responding to a question about price adjustments from Council Member Galindo on Item 1, approving supply agreements for anhydrous ammonia and liquid aluminum sulfate, City Manager Garza stated that as the price fluctuates on the actual market, the bidder has reserved the right to increase or lower the price. On Item 2, approving a supply agreement for gasoline and diesel fuel, Mayor Pro Tem McComb inquired if there was any discussion by the Joint Purchasing Committee in regard to fuel, and City Manager Garza stated that it is on their agenda for the next contract. He stated that he believes this will be a major contract which will affect the local governmental entities. Relative to a question from Council Member Galindo concerning the award of contracts to local bidders on Item 3, approving a supply agreement for approximately 540 magnesium anodes, City Manager Garza stated that there was a law that was introduced in the legislature this past summer but it did not pass. He stated that under the existing State law the City has the ability to make a judgement based on some economic values that a local bidder might offer. He stated that the City would like to do everything possible to keep the bids local but in this case, it was not able to accomplish that. Following a brief discussion relative to the process for ordering the items, Council Member Martin suggested purchasing these items from the local supplier to avoid the warehousing cost. City Manager Garza withdrew Item 3 to check into the recommendation. In Regard to Item 5, CC International Airport, airfield improvements, Council Member Moss inquired about the costs to the taxpayers of Corpus Christi, and City Manager Garza stated that it would be about $42,000. He stated that funding for these projects is 90 percent FAA and 10 percent local. Council Member Moss expressed concern about the delay on Items 6 and 7, Corona Drive Extensions, and City Manager Garza stated that the City is negotiating with the other Minutes Regular. Council Meeting July 2, 1991 Page 4 individuals to obtain their property. He stated that the City needs to bring this to a closure and that is why he recommends moving forward with condemnation proceedings. Mr Garza pointed out that the City did not set the funding for this project until last year. City Secretary Chapa polled the Council for their votes and the following were passed: 1. M91-174 Motion approving supply agreements for anhydrous ammonia and liquid aluminum sulfate based on low bid and only bid with the following companies in accordance with Bid Invitation No. BI -0209-91 for a grand total of $602,500. The terms of the contracts will be twelve months with option to extend for up to an additional twelve months subject to the approval of the suppliers and the City Manager or his designee. These items will be used by the Water Department for treatment of our water supply. Funds have been budgeted by the Water Department for FY 90-91 and requested for FY 91-92. Sure -Grow Solutions, Inc. Taft Texas Anhydrous Ammonia Total: $72,500 (Subject to Price Adjustment) Grand Total: $602,500 Bay Chemical & Supply Co. Odem, Texas Liquid Aluminum Sulfate Total: $530,000 The foregoing motion passed by the following vote: Rhodes, McComb, Galindo, Guerrero, Longoria, Martin, McNichols, Moss and Slavik voting, "Aye." 2. M91-175 Motion approving a supply agreement for gasoline and diesel fuel in accordance with Bid Invitation No. BI -0187-91 with Oil Patch Fuel and Supply, Inc., Corpus Christi, Texas, based on low bid meeting specifications for an estimated annual expenditure of $954,903.81. The term of the contract shall be for twelve months with an option to extend for up to an additional twelve months subject to the approval of the supplier and the City Manager or his designee. This fuel will be used by various departments throughout the City. Funds have been budgeted for FY 90-91 and requested for FY 91-92 by the using departments. The foregoing motion passed by the following vote: Rhodes, McComb, Galindo, Guerrero, Longoria, Martin, McNichols, Moss and Slavik voting, "Aye." 3. Withdrawn Minutes. Regular, Council Meeting July 2, 1991 Page 5 5. M91-177 Motion amending the Aviation Section of the FY 1990-91 Capital Budget to include the widening of the General Aviation Ramp and increasing the radius of the Taxiway B and K intersection at an estimated total cost of $425,000, and approving Amendment No. 2 to the Engineering Services Contract with Parkhill, Smith & Cooper, Inc., in association with Jones & Neuse, Inc., in the amount of $18,060 for design and construction phase services relating to these project. The foregoing motion passed by the following vote: Rhodes, McComb, Galindo, Guerrero, Longoria, Martin, McNichols, Moss and Slavik voting, "Aye." 7. RESOLUTION NO. 021186 AUTHORIZING EMINENT DOMAIN PROCEEDINGS BY THE CITY TO CONDEMN FEE TITLE TO A PARCEL OF LAND FOR THE CORONA DRIVE EXTENSION PROJECT AND TO ACQUIRE SAID PARCEL FROM THE OWNERS, MR. AND MRS. ELADIO DIAZ AND MR. AND MRS. JOHNNY LEE BURNS. The foregoing resolution passed by the following vote: Rhodes, McComb, Galindo, Guerrero, Longoria, Martin, McNichols, Moss and Slavik voting, "Aye." 8. FIRST READING PROVIDING FOR FORFEITURE OF OFFICE BY A MEMBER OF THE PLANNING OR ETHICS COMMISSION OR THE CIVIL SERVICE BOARD/COMMISSION FOR FAILURE TO FILE FINANCIAL INFORMATION REPORT; AND PROVIDING FOR PUBLICATION. The foregoing ordinance passed on first reading by the following vote: Rhodes, McComb, Galindo, Guerrero, Longoria, Martin, McNichols, Moss and Slavik voting, "Aye? ............. Mayor Rhodes called for consideration of Item 9,approving a thirty -month natural gas supply agreement with Reata Industrial Gas, L.P. Victor Medina, Public Utilities Director, provided a brief informational report in regard to the purchase of the City's natural gas requirements. He explained the pricing system for gas and stated that with this contract with Reata, the City continues to lower the Minutes. Regular. Council Meeting July 2, 1991 Page 6 cost of gas to its customers. He stated that the City is attempting to work with Valero to obtain additional discounts on the cost of gas to its customers. Discussion ensued and Council Member Slavik expressed concern about the price of gas, and Mr. Medina discussed the spot market contract. Council Member McNichols inquired about the length of the term of the contract, and Mr. Medina stated that staff believes it is good term for the spot market contract. He stated that staff checked with the suppliers and were advised that it would not make a difference in the prices if the City bid thirty days, thirty months, or twelve months. Mr. J. E. O'Brien, 4130 Pompano, inquired if there is any advantage in having this contract expire at the same time as the contract with Valero. He suggested that staggered contracts would be more advantageous. City Manager Garza commented on the contracts and stated that safeguards are built into the City's contracts to afford assurances that gas is provided to the customers. Council Member Martin moved to approve Item 9; seconded by Council Member Galindo and passed by the following vote: Rhodes, McComb, Galindo, Longoria, Martin, McNichols and Moss voting, "Aye"; Slavik voting, "No"; Guerrero absent at the time the vote was taken. 9. M91-178 Motion authorizing the City Manager or his designee to execute a thirty month gas supply agreement with Reata Industrial Gas, L.P. for purchase of 50% of the City's natural gas requirement to begin on July 1, 1991 and expire on January 1, 1994. Responding to a question from Council Member Martin about the sale of the gas operation and putting it into the private sector, and City Manager Garza stated that matter is under consideration at the present time. ............. Mayor Rhodes called for consideration of Item 10, cession of ETJ rights to Ingleside, and City Manager Garza provided background information and stated that staff believes relinquishing Corpus Christi's ETJ to the City of Ingleside is an appropriate move in that they can most effectively provide the services that are needed in that area. Ms. Leona Robbins, a resident of Ingleside on the Bay, requested that the cession be tabled to a later date in order for the people on the bay to respond to the request. Council Member Slavik inquired if the land could become valuable to Corpus Christi in future years, and City Manager Garza stated that the City will be giving value away but that has to be weighed against the cost of theservices that the City would be providing in that area. Minutes, Regular Council Meeting July 2, 1991 Page 7 Council Member Moss inquired if legally the land could be taken without the consent of the residents, and City Attorney Bray responded that if it is within their ETJ and if their city charter allows them to, they can annex the land without a vote of the property owners. He stated that there is a procedure in the local government code for deannexation which is related to the failure of the municipality to provide services. Mr. Richard Squires, 114 Bayshore Court, Ingleside, expressed opposition to the cession of ETJ rights to Ingleside. Ingleside City Manager Steve Fitzgibbons provided background information and reviewed the annexation request. Mr. J. E. O'Brien, 4130 Pompano, spoke in support of tabling this item to allow the citizens that oppose it to make their case. Mr. Fitzgibbons elaborated on the problem of the leakage of sewage into the bay from the septic tanks in the area and stated that the County Health Department strongly recommended to the City of Ingleside that they get off the septic systems and onto a sewer system for health and safety reasons. Dr. J. Habluetzel expressed opposition to the cession agreement and stated that he developed the Lovers Lane Subdivision in Ingleside more than 20 years ago and it still does not have sewer service. Ms. Maxine Vincent, a resident in Ingleside on the Bay, spoke in opposition to relinquishing the ETJ. Discussion ensued dealing with the subject of the failure of the municipality to provide services and a series of specific questions were asked by several members. Ingleside Mayor Mark Crawford advised that the water rates will be lowered when the individuals on the bay are brought in to the City. He stated that Ingleside is attempting to provide service and he commented on the environmental problem. Planning Director Harvey advised that the City of Corpus Christi will be mandated by the EPA to minimize its septic tank utilization in its corporate area, as well as its ETJ. Mr. Guy Hargrove, a resident of Ingleside on the Bay, spoke in opposition to the cession agreement. City Secretary Chapa polled the Council for their votes and the following resolution was passed: 10. RESOLUTION NO. 021187 REDUCING THE EXTRATERRITORIAL JURISDICTION OF THE CITY OF CORPUS CHRISTI; AND AUTHORIZING THE CITY MANAGER TO Minutes Regular. Council Meeting July 2, 1991 Page 8 EXECUTE THE CITY OF INGLESIDE - CITY OF CORPUS CHRISTI 1991 CESSION AGREEMENT. The foregoing resolution passed by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin and Moss voting, "Aye"; McComb, McNichols and Slavik voting, "No." Mayor Rhodes called for consideration of Item 11, an ordinance granting the zoning request of Nichols Southside Pharmacy, Inc. She noted that the Council had requested staff to work with the applicant in developing a site plan and special permit conditions. Council Member Galindo stated that the wording in the proposed ordinance is not what was requested by the Council. He made a motion to eliminate retail sales from the ordinance and substitute wholesale/detail auto center. The motion was seconded by Council Member Martin. Mr. Cranz Nichols, 4630 Congressional Drive, a relative of the applicant, stated that there would be an occasional sale made on a retail basis but it would not be the primary function. Discussion ensued relative to the wording of the special permit and the motion passed unanimously. City Secretary Chapa polled the Council for their votes and the following ordinance was passed, as amended. 11. ORDINANCE NO. 021188 AMENDING THE ZONING ORDINANCE UPON APPLICATION OF NICHOLS SOUTHSIDE PHARMACY, INC. BY GRANTING A SPECIAL COUNCIL PERMIT FOR AN AUTOMOBILE WHOLESALE USE ON LOT 1-R, BLOCK 2, SOUTHWOOD ADDITION; AND DECLARING AN EMERGENCY. An emergency was declared and the foregoing ordinance passed, as amended, by the following vote: Rhodes, McComb, Galindo, Guerrero, Longoria, Martin, McNichols, Moss and Slavik voting, "Aye." Mayor Rhodes opened the public hearing on the following zoning application: 12. Case No. 691-3, Frank and Sandra Alvarez, Jr.: A change of zoning from "R -1B" One -family Dwelling District to "AB" Professional Office District on Lot 15, Block 7, Gardendale Addition No. 1, located on the north side of Holly Road, approximately 600 feet east of Everhart Road. Minutes Regular Council Meeting July 2, 1991 Page 9 Mayor Rhodes stated that both the Planning Commission and staff recommend approval of the application. The applicant appeared and requested that the case be postponed. A motion was made by Mayor Pro Tem McComb to table Item 12 for one month; seconded by Council Member McNichols and passed by the following vote: Rhodes, McComb, Galindo, Longoria, Martin, McNichols, Moss and Slavik voting, "Aye"; Guerrero voting, "No." Tabled AMENDING THE ZONING ORDINANCE UPON APPLICATION OF FRANK AND SANDRA ALVAREZ JR. BY GRANTING A CHANCE OF ZONING AND DECLARING AN EMERGENCY. Mayor Rhodes opened the public hearing on the following zoning application: 13. Case No. 691-1 Kathy Khashee: A change of zoning from "R -1B" One -family Dwelling District to "A-2" Apartment House District on the south 170 feet of Lot 35, Block 4, Gardendale Addition No. 2, located on the north side of Curtis Clark Drive, approximately 100 feet east of Burton Lane. Mayor Rhodes stated that both the Planning Commission and staff recommend denial of the application. Mr. Max Luther, 4971 Cherry Hills, an attorney representing the families of the care facility residents, provided background information and reviewed the purpose of the zoning request. He presented photographs and provided material from individuals in support of the application. Ms. Kathy Khashee, 5410 Curtis Clark, the applicant, discussed the zoning request and described the care facility. She expressed the opinion that the home is not a threat to the neighborhood. Responding to a question from Mayor Rhodes, Ms. Khashee stated that the home has until December to make the corrections necessary before the State will issue their license. The following individuals expressed support of the application: Ms. Mary Smith, 711 Harrison; Ms. Pam Hilliard, 917 Driftwood; Mr. and Mrs. Ernest Devondon, Rockport residents; a resident of the care facility; Ms. Mary Ann Matthews, a property owner in the area; and Ms. Guadalupe Studer. Minutes Regular, Council Meeting July 2, 1991 Page 10 Ms. Virginia Jacobsen, 3134 Catcay, advised the Council that homes such as this are very much needed in the area. Planning Director Harvey responded to specific questions from the Council. He stated that staff did consider the feasibility of a special permit but the Planning Commission indicated that personal care homes for the elderly are provided for in the "A-2" zoning district. He provided background information and discussed the reasons for the recommendation. Council Members McNichols and Slavik expressed support of a special permit, noting the need for homes for the elderly. Council Member Martin moved to close the public hearing; seconded by Council Member Guerrero and passed unanimously. Discussion followed and Council Member Martin pointed out that the applicant previously operated another home illegally. He stated that the type of use is necessary and desirable and group homes have been approved by the Council. He commented in regard to the single-family nature of the Gardendale area and recommended that the Council not condone zoning which was knowingly established illegally. He suggested that the applicant meet with staff to find other locations with appropriate zoning for this type of facility. Mr. Harvey stated that if the zoning is denied, staff would work with the applicant to relocate and would allow them to remain in the home a reasonable amount of time. A motion was made by Council Member Guerrero to concur with the Planning Commission and staffs recommendation of denial and allow a ninety -day time limit for closing the home. The motion was seconded by Council Member Longoria and passed by the following vote: Rhodes, McComb, Galindo, Guerrero, Longoria, Martin and Moss voting, "Aye"; McNichols and Slavik voting, "No." Mayor Rhodes opened the public hearing on the following zoning application: 14. Case No. 391-1, Transamerica E & I Trading Corporation: A change of zoning from "A-1" Apartment House District to "AB" Professional Office District on Lot 6, Block 1, Ocean View Addition, located on the west side of Ocean Drive, approximately 250 feet south of Morgan Avenue. Mayor Rhodes stated that both the Planning Commission and staff recommend denial of the "AB" District, and in lieu thereof, recommend approval of a special permit for an import and export business office subject to a site plan and six conditions. Mayor Rhodes inquired if the special permit is acceptable to the applicant and the response was affirmative. Minutes Regular Council Meeting July 2, 1991 Page 11 There was no opposition to the zoning application. Council Member Guerrero moved to close the public hearing; seconded by Council Member Galindo and passed unanimously. Mayor Pro Tem McComb noted that a previous application had been submitted to the Council on this particular piece of property and it was denied. He questioned approval of a special permit at this time. Planner Michael Gunning noted that what distinguishes this application from the previous request is that there is a two-story garage apartment toward the rear of the building and the applicant will be required to remove the two-story garage apartment, and in its place will build and install the seven required parking spaces. Responding to a concern expressed by Mr. McComb, Planning Director Harvey noted that based on actions previously taken by the Council and the policy statements of the comprehensive plan, staffs first recommendation to the Planning Commission was denial. He then reviewed the basis for the recommendation. Following a brief discussion, Council Member Galindo pointed out that other lots on the same strip had previously been rezoned. Assistant City Secretary Zahn polled the Council for their votes and the following ordinance was passed: ORDINANCE NO. 021189 AMENDING THE ZONING ORDINANCE UPON APPLICATION OF TRANSAMERICA E & I TRADING CORPORATION BY GRANTING A SPECIAL COUNCIL PERMIT FOR AN IMPORT AND EXPORT BUSINESS OFFICE SUBJECT TO A SITE PLAN AND SIX (6) CONDITIONS ON LOT 6, BLOCK 1, OCEAN VIEW ADDITION; AND DECLARING AN EMERGENCY. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Galindo, Guerrero, Longoria, McNichols, Moss and Slavik voting, "Aye"; McComb voting, "No"; Martin absent at the time the vote was taken. t t k Y* t t** k** Y Mayor Rhodes opened the public hearing on the following zoning application: 15. Case No. 591-2, Kenneth Gunderland: A change of zoning from "R-1B/SP" One - family Dwelling District with a Special Permit for employee parking to "I-3" Heavy Industrial District on Lots 8, 9 and 10, Share 3A, Kaler Tract, located on the northeast corner of Kaler and Rackley Drives. Minutes Regular Council Meeting July 2, 1991 Page 12 Mayor Rhodes stated that both the Planning Commission and staff recommend denial of the "I-3" District, and in lieu thereof, recommend approval of a special permit for parking of employee and company vehicles, storage and sale of boats and boat trailers subject to three conditions. Mayor Rhodes asked if the special permit was acceptable to the applicant and the response was affirmative. No one expressed opposition to the zoning application. Council Member Guerrero moved to close the public hearing; seconded by Mayor Pro Tern McComb and passed unanimously. Assistant City Secretary Zahn polled the Council for their votes and the following ordinance was passed: ORDINANCE NO. 021190 AMENDING THE ZONING ORDINANCE UPON APPLICATION OF KENNETH GUNDERLAND BY GRANTING A SPECIAL COUNCIL PERMIT FOR PARKING FOR EMPLOYEE AND COMPANY VEHICLES, STORAGE AND SALE OF BOATS AND BOAT TRAILERS SUBJECT TO THREE (3) CONDITIONS ON LOTS 8, 9, 10, SHARE 3A, KALER TRACT; AND DECLARING AN EMERGENCY. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, McComb, Galindo, Guerrero, Longoria, Martin, McNichols, Moss and Slavik voting, "Aye." ** Mayor Rhodes advised that the applicant has withdrawn the request for the following zoning application: 16. Case No. 691-2. David Grant Shaffer: A change of zoning from "B-1" Neighborhood Business District to"B-4" General Business District on Lots B -1-A and A -1 -AR, Block 1, Windsor Park Unit 1 Addition, located at the southwest corner of South Alameda Street and Sharon Drive. Mayor Rhodes referred to a plan involving eight blocks of the bayfront relative to additional landscaping, recapturing the green space, etc. She commented in regard to a committee she appointed to study this plan. Mayor Pro Tem McComb inquired about the status of the new fire station, and City Manager Garza provided an update. Minutes Regular Council Meeting July 2, 1991 Page 13 Mr. McComb commented about irate citizens upset with the increased enforcement of the seat belt law in conjunction with television cameras following the police vehicles. City Manager Garza advised that this is a program which is funded by the State and which allows the City to put police officers in a certain spot to enforce the seat belt law. Mr. McComb inquired about the status of the rumble bumps on Doddridge, and City Manager Garza stated that he will provide a report to the Council. Council Member Slavik inquired about her request of cost figures for City utilities, and City Manager Garza responded that they will be furnished today. Council Member Moss inquired about the brush clean up in the 1200 block of Ocean Drive, and City Manager Garza stated that he will have staff look into the matter. Responding to a question from Council Member Moss in regard to the report on the capital improvement projects, City Manager Garza stated that the projects are essentially complete; they have minor details to be worked out; and are not finalized until everything is complete on the project. Council Member Martin inquired about the water in the watershed, and City Manager Garza stated that he will provide a report. A discussion followed in regard to discontinuing the water releases, and Mr. Martin stated that he would like this issue researched, and City Manager Garza stated that a report will be provided to the Council. Council Member McNichols advised that the City should not stop releasing the water until the committee that has been established to specifically investigate this matter presents an analysis. Dr. McNichols recommended that the City look into a second party notification procedure in regard to the payment of utilities, and City Manager Garza responded that he will have staff check into such a procedure. Mayor Rhodes called for petitions from the audience on matters not scheduled on the agenda. Mr. Ron Hudson, 3556 Austin, spoke about City government and separation of religion and state. Mr. Raymond Hasker, 1813 Wallace, commented in regard to the City's budget process and reserves in the City budget. The Council went into closed session pursuant to Article 6252-17, Section 2(e), V.A.C.S., and other applicable law to receive attorney's advice concerning police negotiations. t# R t i Y! Y i•• i Minutes Regular. Council Meeting July 2, 1991 Page 14 Mayor Rhodes reconvened the Council Meeting and advised that the Council will take a dinner break until 6:30 p.m. Y• t* t t•••* W t Y Mayor Rhodes reconvened the Council Meeting and called for the discussion of the budget. Corpus Christi Area Convention and Visitors Bureau Mr. Bill Pruet, representing the Corpus Christi Area Convention and Visitors Bureau, addressed the Council and informed them that the Bureau would like to request an additional $250,000 in funding from the City in order to properly market some of the City's new attractions such as the Texas State Aquarium and the Greyhound Race Track. He displayed charts showing how their funding will be spent and a chart depicting the projections of visitor expenditures in the Bay area and the resulting jobs created by the increased spending. Mr. Pruet indicated that he concurred with City Manager Garza that the hotel/motel tax will generate at least $3.5 million next year which he believes is a conservative estimate. He stated that because of the increased funding from this source, he would like to request that the Bureau's contract be renegotiated to increase their funding in future years. He summarized his request by stating that the City Manager has included in the City budget $1.5 million and they would like this increased to $1.75 million. Council Member Martin inquired of Mr. Pruet if a comparison has been made of this Bureau's staffing and operation costs to that of other cities, and Mr. Pruet responded that their organization has fewer employees and 30% of their total allocation is used for staffing and operating costs, which compares favorably with other cities. Council Member Martin elaborated on the reasons that $1.5 million was agreed to in 1988 for the amount of funding for the Bureau. He pointed out that the hotel/motel business has increased 25 percent since then but questioned whether or not this was the result of efforts by the Bureau. He also pointed out that there are other uses for hotel/motel tax funds needed by this City. He inquired as to whether or not a spot audit might be in order because some members of the Bureau board have expressed the opinion that some motels are not contributing the taxes collected at their facilities, and the Board Members have stated that they feel that as much as $700,000 has not been collected. City Manager Garza assured the Council that he plans to have the City's Internal Audit staff begin conducting random checks on those motels. Further discussion followed, and in response to a question by Council Member Guerrero, City Manager Garza stated that the Bureau is requesting a total allocation of $1,750,000 which is exactly one-half of the projected income from the hotel/motel tax for the upcoming year; he is recommending that $2 million be allocated for the City expenses; $1,500,000 be allocated for the Bureau; and informed the Council that the City allocation Minutes Regular. Council Meeting July 2, 1991 Page 15 includes $250,000 in undesignated funds. Mr. Garza explained that he would like to retain that $250,000 for expenses in the event the hotel/motel tax is less that $3.5 million. Mayor Rhodes reminded the Council that there are some major events scheduled for 1991 which will generate an increase in the hotel/motel tax, but that this may not be true for 1992. She also expressed the opinion that some of the City's local organizations are responsible for attracting large conventions and not necessarily the results of the marketing efforts of the Bureau. She suggested that a survey be conducted by the hotels to determine the reason people come to Corpus Christi in order to measure the marketing efforts of the Bureau. A motion was made by Mayor Pro Tem McComb that consideration be given to providing funds for the Bureau in the amount of $1.75 million for fiscal year 1991-92 with the understanding that if the projected hotel/motel tax of $3.5 million is not realized, the Bureau would be responsible for the shortage, not the City's General Fund. The motion was seconded by Council Member McNichols. Council Member Guerrero offered an amendment to the motion to the effect that the $2 million would be allocated to the City; $1.5 million would be allocated to the Bureau; the Bureau would be allocated the next $250,000 in taxes collected; and the Bureau would receive 50% of anything over that amount collected in hotel/motel taxes. Further discussion ensued on the City's need to make major repairs to several facilities from this source of revenue, and Council Member Guerrero noted that there are surplus funds in the Corpus Christi Housing Finance Corporation, some of which could be used for a new roof for the Art Museum. Council Member Martin referred to the formula for allocations based on Mr. Guerrero's motion and pointed out that the 50%/50% split between the City and the Bureau of everything over $3.75 million could be very wrong for 1993. He stated that he felt that the Bureau funding might be increased at the beginning with possibly $100,000 over the recommended $1.5 million allocation. He then suggested that the City Manager discuss the revised funding and the possibility of a renegotiated contract with representatives of the Bureau board. Mayor Pro Tem McComb then withdrew his motion. City Manager Garza reviewed other funding that he is recommending from the hotel/motel tax and stated that the City's portion of the funds includes $25,000 to the Harbor Playhouse; $80,000 for the Municipal Arts Commission, plus $50,000 from the General Fund; but reiterated that there is the need for major maintenance at the Convention Center, Harbor Playhouse and the Art Museum of South Texas. Economic Development Corporation Gary Bushell, 17 Lakeshore, reviewed t'he funding request and increase, stating that that they will not be receiving Private Industry Council funds this year. He stated that is the Minutes Regular. Council Meeting July 2, 1991 Page 16 funding which financed the bulk of their foreign trade center, their contract assistance center and much of their communication and research. He stated that his organization is in the process of studying the budget to see where they can reduce costs without affecting the effectiveness of the program. Mayor Rhodes stated that she would like to see hard data showing that the $250,000 which is provided to the EDC is responsible for the economic development that comes into town. Art Museum of South Texas Deputy City Manager Jesus Garza noted that there is an additional $75,000 request needed for operations. He referred to the tremendous amount of deferred maintenance that the facility has experienced, noting that there are approximately one-half million dollars of improvements that need to be done. Ms. Lillian Murray, 13513 King Philip, Director of the Art Museum, reviewed their funding request and stated that they are requesting the City to assist them in meeting their escalating costs related to the maintenance and security of the building. She commented about repairs needed in the building and stated that it is very important that the Art Museum be brought up to City code especially as it relates to handicapped access. She commented about the air conditioning system, the leaking roof and the security and fire systems. Mayor Rhodes requested that the Art Museum provide, in writing, the justification for the $75,000 request. Quincentenary Commission Ms. Janet Rice, representing the Quincentenary Commission, reviewed the funding request and stated that additional funding is required for liability insurance. Ms. Rice was requested to provide the Council, in writing, the justification for the $7,000 request. Council Member Martin recommended that a resolution could be passed holding the commission harmless whereby they would be covered by the City's insurance under any claim that might arise out of their official actions, and Deputy City Manager Garza stated that he will provide a report to the Council. There being no further business to come before the Council, Mayor Rhodes declared the Council Meeting adjourned at 8:50 p.m. on July 2, 1991. ............. •