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HomeMy WebLinkAboutMinutes City Council - 11/12/1991MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting November 12, 1991 2 p.m. PRESENT Mayor Mary Rhodes Mayor Pro Tem Leo Guerrero Council Members: Cezar Galindo Betty Jean Longoria Edward Martin Joe McComb Dr. David McNichols Clif Moss Mary Pat Slavik 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 Pastor William K. Schuster of Mt. Olive Lutheran Church, 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 November 5, 1991, and there being no corrections, she proclaimed them approved as presented. City Manager Garza read a letter from the graduates of the eighth session of the Corpus Christi Citizens' Police Academy expressing appreciation to the City for the academy and the service it renders the community. Mr. Ralph H. Hesse, a spokesman for the group, thanked the police officers involved in the academy. * * * * * * * * * * * * * Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 1 thru 6, stating that the City Manager has withdrawn Item 6, and Council Members requested that Items 3 and 4 be withheld for discussion. MICROFILMED Minutes Regular Council Meeting November 12, 1991 Page 2 City Secretary Chapa polled the Council for their votes and the following were passed: 1. M91-299 Motion approving the purchase of a new modular ambulance based on best bid and an ambulance remount based on low bid from Collins Ambulance, Mansfield, Texas, in accordance with Bid Invitation No. BI -0031-92. The unit prices, including trade-ins are $63,073 for the new unit, and $33,230 for the remount unit, for a total expenditure of $96,303. The units are budgeted in the Fire Department 1991-92 Capital Outlay as replacements. The foregoing motion passed by the following vote: Rhodes, Guerrero, Galindo, Longoria, Martin, McComb, McNichols, Moss and Slavik voting, "Aye." 2. M91-300 Motion authorizing acquisition of Lot 8, Block 14, Gardendale Addition No. 3, located at 4826 Williams Drive on the north side between Nelson Lane and Everhart Road for $30,000 from Eladio Diaz, et al, in connection with the Corona Drive Extension Project as a result of condemnation proceedings. The foregoing motion passed by the following vote: Rhodes, Guerrero, Galindo, Longoria, Martin, McComb, McNichols, Moss and Slavik voting, "Aye." 5. SECOND READING AUTHORIZING THE DONATION OF A PARCEL OF LAND BY THE CITY TO THE STATE OF TEXAS FOR THE CROSSTOWN EXPRESSWAY EXTENSION PROJECT, SAID PARCEL LOCATED ON THE WEST SIDE OF AYERS STREET JUST SOUTH OF STATE HIGHWAY 358 (SOUTH PADRE ISLAND DRIVE). The foregoing ordinance passed on second reading by the following vote: Rhodes, Guerrero, Galindo, Longoria, Martin, McComb, McNichols, Moss and Slavik voting, "Aye." 6. Withdrawn - OD_ 0. ..D . . .11 WELLS, BY AMENDING SECTIONS 35 3, 36 16, 35 31, 35 35, 35 60, 35 80, 35 105, 35 107, 35 130, AND 35 133. * * * * * * * * * * * * * Relative to questions from Council Member Moss on Item 3, adoption & submission of the City of Corpus Christi's Comprehensive Housing Affordability Strategy, City Manager Minutes Regular Council Meeting November 12, 1991 Page 3 Garza stated that staff recommends adoption of the plan, noting that the City would be an active participant in the program. Council Member Galindo commented on Item 4, parking meters and fines, and expressed the opinion that it would be counterproductive to remove the meters because they are a revenue generating item for the downtown area. He opposed paying $20,000 for removal of the meters, noting that the City would take a $200,000 loss by removing the meters. Mr. Galindo made a motion to activate the hooded meters and dedicate those funds to the future Municipal Management District. The motion was seconded by Council Member Slavik. Discussion ensued and Bill Hennings, Director of Development Services, responded to questions raised by the Council and estimated that $30,000 additional revenue would accrue if the hoods were removed and the meters put back into service. Responding to Council Member Slavik about selling the meters, Mr. Hennings discussed plans for the meters, and City Manager Garza stated that selling the meters would not pay for the cost of the removal. Mr. Kevin Walker, representing the Heart of Corpus Christi, stated that the purpose of the meters was to generate available parking spaces, not to generate revenue. He expressed support of removing the meters. The motion made by Council Member Galindo failed to pass by the following vote: Galindo and Slavik voting, "Aye"; Rhodes, Guerrero, Longoria, Martin, McComb, McNichols and Moss voting, "No." Council Member McNichols referred to the ordinance, increasing fines for parking violations, and stated that an increase is in order but expressed concern about a 100 percent increase. He asked if the Council would be interested in modifying the increase. Mr. Hennings justified the basis for the increase. Council Member Martin inquired about the collection percentage on the tickets, and Mr. Hennings stated that he did not know the answer. Mr. Martin then recommended withdrawing the ordinance until the answer is obtained. Council Member Martin made a motion to table Item 4b, increasing the fines. The motion was seconded by Council Member Slavik and failed to pass. Mr. Hennings stated that the collection record on the fines is 67 percent. City Secretary Chapa polled the Council for their votes and the following were passed: 3. RESOLUTION NO. 021282 Minutes Regular Council Meeting November 12, 1991 Page 4 ADOPTING AND AUTHORIZING THE SUBMISSION OF THE CITY OF CORPUS CHRISTI'S COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY. The foregoing resolution passed by the following vote: Rhodes, Guerrero, Galindo, Longoria, Martin, McComb, McNichols, Moss and Slavik voting, "Aye." 4a. FIRST READING AMENDING THE CODE OF ORDINANCES, CHAPTER 53, SECTION 53-257, SCHEDULE VIII, PARKING METER ZONES ESTABLISHED BY DELETING PARKING METERS ON SPECIFIC STREET SECTIONS IN METER ZONE NO. 4, ADDING METERS IN METER ZONE NO.2; AND PROVIDING FOR PUBLICATION. The foregoing ordinance passed on first reading by the following vote: Rhodes, Guerrero, Longoria, Martin, McComb, McNichols, Moss and Slavik voting, "Aye"; Galindo voting, "No." 4b. FIRST READING AMENDING THE CODE OF ORDINANCES, CHAPTER 53, TRAFFIC, ARTICLE III, ENFORCEMENT AND COMPLIANCE, DIVISION 2, PENALTIES AND IMPOUNDMENT, SECTION 53-55, PENALTIES, TO INCREASE FINE ASSESSMENTS; AND PROVIDING FOR PUBLICATION. The foregoing ordinance passed on first reading by the following vote: Rhodes, Guerrero, Longoria, McComb, Moss and Slavik voting, "Aye"; Galindo, Martin and McNichols voting, "No." 4c. FIRST READING AMENDING THE CODE OF ORDINANCES, CHAPTER 53, SECTION 53-257, SCHEDULE VIII, PARKING METER ZONES ESTABLISHED BY CONVERTING PARKING METERS ON SPECIFIC STREET SECTIONS FROM LONG-TERM, TEN-HOUR PARKING METERS TO SHORT-TERM TWO- HOUR PARKING METERS; AND PROVIDING FOR PUBLICATION. The foregoing ordinance passed on first reading by the following vote: Rhodes, Guerrero, Longoria, Martin, McComb, McNichols, Moss and Slavik voting, "Aye"; Galindo voting, "No." * * * * * * * * * * * * * Mayor Rhodes called for consideration of Item 7, City vs. J. P. Stevens & Co., et al, and it was the consensus of the Council to go into closed session for discussion of Item 7. Minutes Regular Council Meeting November 12, 1991 Page 5 The Council went into closed session pursuant to the Texas Open Meetings Act, Article 6252-17, Section 2E, to discuss Item 7. * * * * * * * * * * * * * Mayor Rhodes reconvened the Council Meeting and recognized Mr. Michael Terry, the attorney representing the City in the airport expansion lawsuit. Mr. Terry proposed a settlement and explained the terms. He stated that the settlement reimburses the City for all costs associated with the faulty roof and its replacement. Mayor Rhodes moved to approve the settlement of City vs. J. P. Stevens & Co., et al, No. 89-5217-D, 105th District Court for payment to City by J. P. Stevens of $740,000, entry of judgement against CJB Construction, Inc. and Robert Jenkins with assignment of their claim against Great Western Roofing, Inc. and its insurers to the City with a guaranteed $350,000 recovery, with attorneys' fees payable out of such guarantee, as set forth in the settlement documents prepared by attorney Michael Terry. The motion was seconded by Mayor Pro Tem Guerrero and passed unanimously. (M91-301) * * * * * * * * * * * * * * Mayor Rhodes called for consideration of Item 8, proposed settlement agreement for freshwater releases, and City Manager Garza stated that staff recommends the settlement agreement as proposed to the Council. Deputy City Manager Garza responded to specific questions raised by Council Member McComb in regard to the agreement and commented on the charges of the policy committee and the Nueces Estuary Advisory Council. In regard to the brine release discharges, Mr. Garza stated that they are not referred to in the agreement. He stated that a second pre -hearing meeting will be held on November 21, noting that the breadth of the hearing has not yet been established by the Texas Railroad Commission. Mr. Garza then elaborated on the hearing process concerning the water releases. Council Member McNichols clarified that if any of the parties in the settlement felt that the agreement had become unacceptable, they could reinstitute the appeal for the hearing process. Dr. McNichols made comments in regard to the Nueces Estuary Advisory Council and the policy committee. Dr. Michael Speed, the Mayor's advisor on freshwater releases, clarified that under this proposal, the City must be prepared to release 91,000 acre feet of water. He stated that in the wet years when there are spills and when the salinity levels fall, the City can get credit, noting that the City must be prepared to release that water during the next five years. He referred to the proposed task force and stated that this is a very serious issue and experts are needed to provide a second opinion. Dr. Speed stated that it is very critical that the special policy committee is formed to work with the policy committee of the Texas Water Commission, and Mayor Rhodes advised Dr. Speed that she had appointed him, the Deputy City Manager and Council Member McNichols to serve on the policy committee. Minutes Regular Council Meeting November 12, 1991 Page 6 In response to a question from Council Member Slavik, Deputy City Manager Garza reviewed the City's current water situation. Following a brief question and answer period, Council Member McComb questioned public participation and compliance if the City tells individuals to reduce the amount of water they use, when at the same time the City is releasing water from the lake. Council Member Martin expressed the opinion that the agreement is the best the City can achieve at this time, given specific conditions. He stated that it protects the City the most over the next five years. He suggested that the staff and the committees begin work immediately. Mayor Pro Tem Guerrero expressed the opinion that it is a disgusting compromise but the City has no other choice. He inquired if the option to go to court would always be available, and Deputy City Manager Garza responded in the affirmative. Mayor Rhodes expressed the opinion that it would cost the City a fortune in fines if the Council decided not to release the water, pointing out that the City would have to release the water anyway. City Secretary Chapa polled the Council for their votes and the following motion passed: 8. M91-302 Motion to approve settlement of the parties to the Texas Water Commission (TWC) proceeding in the matter of an order establishing interim operating procedures and the establishment of an advisory council pertaining to special conditions S.B., Certificate of Adjudication No. 21-3214, held by the City of Corpus Christi, Nueces River Authority, and the City of Three Rivers, as stated in draft October 17, 1991, revised November 1, 1991. The foregoing motion passed by the following vote: Rhodes, Guerrero, Galindo, Longoria, Martin, McNichols, Moss and Slavik voting, "Aye"; McComb voting, "No." ************* Mayor Rhodes declared a five-minute recess. Mayor Rhodes reconvened the Council Meeting and called for consideration of privatization of the City's Gas System. City Manager Garza provided background information in regard to the sale of the City's gas utility. He stated that staff was asked to present an analysis of the Gas Division, the methodology by which the sale could be accomplished, and an analysis of the pros and cons of such a sale. He stated that staff concluded that based on current information available, the City has not been presented a good deal. He stated that the City's gas utility Minutes Regular Council Meeting November 12, 1991 Page 7 is one of the best in the State and a money-maker for the City. Mr. Garza pointed out that in the event it is sold, a cash flow would be given up forever. Victor Medina, Director of Utilities, presented an informational report to the Council and reviewed comparisons of residential gas bills and cost of service comparisons. Highlights of Mr. Medina's presentation included a historical background of the City's Gas Division; historical background on City gas rates; Corpus Christi Gas Division as it currently exists; methodology for the sale of the City's Gas Division; analysis, conclusion and staff recommendation, including advantages and disadvantages of the sale of the Gas Division. Mr. Medina responded to specific questions raised by the Council. Mayor Pro Tem Guerrero inquired what percentage of the homes in Corpus Christi are all electric, and Mr. Medina responded that he would provide that information at a later date. Council Member Martin inquired if there is any free gas service going into any General Fund activities, and Mr. Medina replied in the affirmative. Mr. Martin asked if that was consistent with the City Charter and asked if it is a transfer of funds, and City Attorney Bray responded that he does not believe so. Mr. Martin requested a legal opinion. In summation, Mr. Medina declared that staff strongly recommends against the sale of the Gas Division for numerous reasons and he elaborated on the reasons. Mayor Pro Tem Guerrero expressed the opinion that based on the information received, few of the figures are firm, the majority of them being speculation and based on no negotiations or interactions with any proposers. He stated that before the Council can make any decision, there will have to be answers to many questions. Mr. Guerrero suggested appointing an ad hoc committee to work with the staff and present a recommendation to the Council. Discussion ensued and Mr. Martin questioned the costs projected by staff and expressed the opinion that the facts are inaccurate. He declared that he is biased because he believes that the City should begin privatizing something. He stated that every one of the disadvantages could be negotiated away. Mr. Martin stated that this is the first utility related recommendation from staff where they chose to consider the needs of the elderly and low income, noting that he has never heard that in any rate proposed increase presented by the City Manager, and City Manager Garza interjected that he has never offered to restructure the rates, stating that the restructuring occurred before he became City Manager. Mayor Rhodes stated that this is the staff recommendation and they should not be criticized for their recommendation. Council Member McNichols asked what kind of indebtedness is associated with the gas system, and City Manager Garza replied that there is none. Mr. Garza stated that the City has combined the utilities and it is appropriate under the combined utilities fund to utilize the revenues of the gas system to support water or wastewater. Following a brief question and answer period, Council Member Galindo stated that the ultimate responsibility of the Council is to provide the citizens with the best system available. Minutes Regular Council Meeting November 12, 1991 Page 8 Council Member Moss concurred that the City should investigate privatization and he agreed with forming a committee to investigate this issue. In response to a question from Council Member Slavik, City Manager Garza stated that if the system was sold, the Council would have some control over the rates but not final authority, pointing out that currently the Council has final authority. Mrs. Slavik expressed concern about an increase in rates and stated that she is in favor of the ad hoc committee. Mayor Rhodes appointed the ad hoc committee, consisting of Council Member Slavik as chairman and Council Members Martin, Galindo and Mayor Pro Tem Guerrero. Council Member Martin pointed out that the income from the sale of the Gas System would help build the Southside Wastewater Treatment Plant and help acquire more water rights. Mr. Davis J. Mistrot, 3322 Halfpenny, a consulting engineer in the natural gas and energy field, read a prepared statement and expressed support of the City's retaining the gas system. He stated that it is the best gas system in the State of Texas. Council Member Martin informed him that the gas system produces zero in excess revenue. Mayor Rhodes called for the City Manager's report, and City Manager Garza advised the Council that the City received written acknowledgement from Eagle Insurance Company regarding Fire Station No. 1, advising that they are in the process of soliciting bids to complete the project. Mayor's Update - Mayor Rhodes spoke about plans for the upcoming HEB Christmas Dinner and stated that if anyone is interested in assisting with this project, to call the Volunteer Center. Mrs. Rhodes spoke about her recent trip to San Antonio, stating that the Mayor of San Antonio has formed a regional group to deal with regional problems. She stated that he has consented to let the City of Corpus Christi host a regional group meeting in Corpus Christi. Mrs. Rhodes also commented about a recent trip to Washington, D.C. with Mayors from across the United States and expressed appreciation to the American Association of Retired Persons for financing the trip. Mayor Rhodes called for Council concerns and liaison reports. Council Member McComb informed the Council that Ms. Irma Caballero, President of the Workforce Development Corporation, has submitted her resignation to take a position in the private sector. He advised that Robert Trask also has offered his resignation and he suggested that Mike Carrell, President of the Texas Commerce Bank, an advisory member of the Workforce Development Corporation, be appointed to the private sector slot vacated by Mr. Trask. Mayor Rhodes stated that she has requested the City Secretary to put the vacancy on the agenda as a regular Board and Commission appointment. Minutes Regular Council Meeting November 12, 1991 Page 9 Council Member McNichols referred to the water release issue and commented on the formation of the policy committee and the task force of group representatives which needs to be appointed so they can begin to collect data. He inquired about the appointment for the head of the task force, and Mayor Rhodes asked if Dr. McNichols would meet with the other members of the policy committee and present suggestions to the Council. Mayor Rhodes called for petitions from the audience on matters not scheduled on the agenda. Mr. Ram Chavez, 1642 Sandlewood, Musical Director of the Veterans Band of Corpus Christi, updated the Council on events concerning the Veterans Band and discussed the financing for the band's trips. Mr. Chavez invited everyone to a world premiere movie of "Where the Red Fern Grows, Part II" which will be held on Friday at the Bayfront Plaza Auditorium. Council Member Longoria encouraged people to attend the movie because the band needs the funding. She asked if the band had resolved the question of payment of insurance for the use of the bus, and Mr. Chavez replied that has not been resolved. Mrs. Longoria stated that she hoped someone would come forward to help the Veterans Band with the insurance needed for the bus. Mr. Dan Murphy, representing Texas Fuel and Asphalt, presented a letter to the Council concerning the City's intent to extend the 1991 HFRS-S asphalt emulsion contract. City Manager Garza stated that he will present a report to the Council in regard to this issue. Mr. Ron Hudson, 3556 Austin, raised questions concerning the cablevision's religious access users group. Mr. Leon Perez, 904 Buford, expressed opposition to banning smoking in the City Hall lobby, and Mayor Rhodes requested staff to bring forth an ordinance to prohibit smoking in the City Hall lobby. There being no further business to come before the Council, Mayor Rhodes declared the Council Meeting adjourned at 4:43 p.m. on November 12, 1991. I HEREBY CERTIFY that the foregoing is a true and correct copy of the Minutes of the Regular Council Meeting of the City of Corpus Christi of November 12, 1991, which were approved by the City Council on November 19, 1991. WITNESSETH MY HAND AND SEAL, this the 22nd day of November, 1991. Armando Chapa City Secretary