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
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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
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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
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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.
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