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HomeMy WebLinkAboutMinutes City Council - 02/04/1992MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting February 4, 1992 2 p.m. PRESENT Mayor Mary Rhodes Mayor Pro Tem Cezar Galindo Council Members: Betty Jean Longoria Edward Martin Joe McComb Dr. David McNichols Clif Moss Mary Pat Slavik Absent Leo Guerrero 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 Council Member Galindo following which the Pledge of Allegiance to the Flag of the United States was led by Council Member Longoria. 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 Meetings of January 21 and January 28, 1992, and there being no corrections, she proclaimed them approved as presented. Dr. Terry Whitledge, University of Texas Marine Science Institute, presented a prospectus for the Corpus Christi Bay National Estuary Program and requested consideration of a resolution that would endorse the Corpus Christi bay area to be included in the National Estuary Program. He discussed the national significance and benefits of the Corpus Christi Estuary. Following a lengthy discussion, Dr. Whitledge and Dr. J.W. Tunnel, Corpus Christi State University, responded to a series of specific questions raised by the Council dealing with the proposed areas and the funding sources. Mlt%ROO NIFD Minutes Regular Council Meeting February 4, 1992 Page 2 City Manager Garza stated that he would like Corpus Christi to be a leader in the implementation of this program. He indicated that staff would prepare the resolution which would be presented to the Council. Mr. Keith Hansen, Nueces County Horticulture Agent for the Texas Agriculture Extension Service, presented a general overview on xeriscaping, a high-quality landscaping which conserves water and protects the environment. He stated that the Corpus Christi Museum of Science and History has been chosen as the xeriscaping demonstration garden for the concept of xeriscaping. Mr. Hansen invited the Council to a brainstorming workshop which will be held on the concepts of zeroscaping on Saturday, February 22. Mayor Rhodes called for consideration of consent motions, resolutions, ordinances, and ordinances from previous meetings on Items 1 thru 5, and a Council Member requested that Item 3 be withheld for discussion. City Secretary Chapa polled the Council for their votes and the following were passed: 1. M92-023 Motion approving a supply agreement for approximately 1,375 tons of calcium oxide in accordance with Bid Invitation No. BI -0097-92 with APG Lime Corp., New Braunfels, Texas based on the low bid of $72,187.50. The term of the contract will be twelve months with 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 chemical is used in the treatment of our water supply by the Water Department and funds have been budgeted for FY 91-92. The foregoing motion passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, McNichols, Moss and Slavik voting, "Aye"; Guerrero absent. 2. M92-024 Motion approving a service contract for water treatment for various City facilities in accordance with Bid Invitation No. BI -0135-91 with Aqua Process, Inc., Houston, Texas based on low bid for the estimated annual expenditure of $17,880. The term of the contract shall be twelve months with option to extend for up to two additional twelve-month periods subject to the approval of the supplier and the City Manager or his designee. This service will be used by various City facilities for water-cooled air conditioning equipment and hot water boilers. Funds have been budgeted for FY 91-92. The foregoing motion passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, McNichols, Moss and Slavik voting, "Aye"; Guerrero absent. Minutes Regular Council Meeting February 4, 1992 Page 3 4. ORDINANCE NO. 021325 APPROVING THE ASSIGNMENT OF A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FROM ISLAND SHUTTLE CAB COMPANY TO CLAUDIA L. MCCRAINE AND MICHAEL D. MOORE, D/B/A AMERICAN CAB AND SHUTTLE COMPANY FOR THE OPERATION OF A TAXICAB SERVICE WITHIN THE CITY OF CORPUS CHRISTI; AND DECLARING AN EMERGENCY. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, McNichols, Moss and Slavik voting, "Aye"; Guerrero absent. 5. SECOND READING AUTHORIZING A USE PRIVILEGE AGREEMENT WITH KOCH REFINING COMPANY FOR THE RIGHT TO INSTALL AND MAINTAIN A RAW WATER PUMP STATION BUILDING AND A RAW WATER PIPELINE WITH THE CUNNINGHAM WATER TREATMENT PLANT PROPERTY FOR A ONE TIME FEE OF $10. The foregoing ordinance passed on second reading by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, McNichols, Moss and Slavik voting, "Aye"; Guerrero absent. Relative to Item 3, contract for inspection services with Horizon Systems, Inc., Council Member McComb inquired if installation of the security fence had been completed, and City Manager Garza responded that the installation had not been completed. George Hext, Director of Aviation, commented about the time frame of the contract and stated that the weather had prevented the airport engineer from inspecting the project, in addition to his having a major workload of other projects. Responding to a question from Council Member Moss regarding the cost to the City, Mr. Hext stated that the FAA is reimbursing the design and contract administration costs incurred on a 90/10 basis. City Secretary Chapa polled the Council for their votes and the following motion passed: 3. M92-025 Motion authorizing the City Manager, or his designee, to execute a contract for Inspection Services with Horizon Systems, Inc. in an amount not to exceed $14,000. Minutes Regular Council Meeting February 4, 1992 Page 4 This project is associated with the Security Access Control System and Perimeter Fencing Project at the Corpus Christi International Airport. The foregoing motion passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, McNichols, Moss and Slavik voting, "Aye"; Guerrero absent. s s s s s s s s Mayor Rhodes called for consideration of Item 6, annual financial audit. City Manager Garza provided background information and stated that the Council had expressed a desire to become more involved in this project and he is requesting authorization to proceed with the Request for Proposal process. Council Member Moss expressed the opinion that the Council should have more input into the process. He stated that the City Manager should proceed with the RFP and present three choice proposals to the Council. Responding to questions from Council Member Martin in regard to the contract, City Manager Garza stated that he is proposing a three-year contract renewable every year. Mr. Martin raised questions about the length of the contract and suggested that it be a one-year contract. Mr. Garza discussed the benefits of the three-year contract and presented a summary of the RFP to the Council. Council Member Slavik concurred with Council Member Moss and suggested that the Council be presented with two or three proposals. Discussion ensued and Council Member Martin expressed the opinion that the audit should be performed by a local firm. Mr. Garza read the evaluation criteria and stated that there is a definite advantage to having the audit done by a local firm. Council Member Longoria concurred with Council Member Martin. A motion was made by Council Member McNichols to amend the RFP and restrict it to qualified local firms. The motion was seconded by Council Member Longoria and passed unanimously; Guerrero absent. City Secretary Chapa polled the Council for their votes and the following motion passed, as amended: 6. M92-026 Motion authorizing the City Manager to proceed with the Request for Proposal process to perform the financial and compliance audit for fiscal years ending July 31, 1992, 1993 and 1994, and at the City's option, years 1995 and 1996. Minutes Regular Council Meeting February 4, 1992 Page 5 The foregoing motion passed, as amended, by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, McNichols, Moss and Slavik voting, "Aye"; Guerrero absent. Mayor Rhodes called for consideration of Items 7, 8 and 9 relative to the sale of $11,550,000 General Improvement Bonds, Series 1992; $3,000,000 Combination Tax and Municipal Hotel Occupancy Tax Certificates of Obligation, Series 1992; and $500,000 Combination Tax and Marina Revenue Certificates of Obligation Series 1992-A. City Manager Garza provided background information and indicated that the FY 1991-92 budget anticipated a spring sale of bonds and certificates. He stated that the City's five-year debt service plan requires annual adjustment based upon changes in the City's tax base. Mr. Garza pointed out that next year the City would require additional revenue resources to meet the debt service requirements. In response to a question from Council Member Moss, City Manager Garza stated that the bonds will be sold on March 31st. Mr. Moss noted that there is a still a question about the title of the Lady Lex coming to the City and expressed concern about selling the bonds prematurely. Mr. Rob Earley, President of the Convention and Visitors Bureau, stated that they have about $1.7 million in private pledges. He stated that they want the Museum to open this Summer in order to get the benefit of the maximum cash flows in terms of the admissions. He indicated that in order to do that certain actions have to be taken now. Council Member McComb stated that the Council needs to address a policy issue before going into the budget preparation on whether major program cuts or a tax increase would be the best way to finance the 1992-93 budget. Mr. Garza responded to various questions posed by the Council regarding the lease of the Museum and the financing. Council Member Slavik referred to the $3 million Certificates of Obligation and inquired how they would be paid off, how much per year, and from what source, and City Manager Garza replied that they will be paid off from the hotel -motel tax that is allocated to the Convention and Visitors Bureau. He stated that he did not know the debt service schedule but it would be approximately $300,000 a year for about twenty years. Mr. Garza stated that Certificates of Obligation always have incorporated into them a pledge of the full faith and credit of the City. Council Member McNichols clarified that the $300,000 a year that is pledged by the Convention and Visitors Bureau are so-called first dollars. He stated that the projected bed tax for the next few years will increase by all projections and a small portion of that will be committed up front to pay for those bonds. Minutes Regular Council Meeting February 4, 1992 Page 6 Mr. Earley assured Council members that the bureau would be able to meet its debt obligation. Council Member Martin advised that the community has made a commitment that this will be a major tourist attraction and if the City only receives $300,000 a year in hotel - motel taxes, that debt service will be paid for. Council Member McNichols suggested that a budget workshop session be held in which the Council could decide whether they want to ask the public if they want increased services and increased taxes, the same taxes and fewer services, or if they want to consider a tax decrease. Council Member Slavik expressed concern about the maintenance costs of the Lady Lex, and Mr. Earley replied that if they did not have one dollar of additional revenue from the ship, they have adequate resources to maintain it. He stated that the budgets projected for maintenance are based on actual experience of other sister ships. Council Member Martin expressed the opinion that in terms of implementing the intent of the bond election of 1986, the City Manager has done a great job, and Council Member Moss concurred. Mr. Raymond F. Hasker, 1813 Wallace, spoke about the financing for the Lady Lex and expressed concern about the real costs of keeping the project afloat. Mr. J. E. O'Brien, 4130 Pompano, inquired about the signature requirement and time frame for getting the signatures if a citizen desired to have a vote where Certificates of Obligation are issued. He expressed the opinion that the Certificate of Obligation Act is constantly being abused in this community and he spoke about the intent of the act. Council Member Martin pointed out that the $3 million Certificates of Obligation meet the spirit of the Certificate of Obligation Act because of the outside revenue source. Mr. Leon Perez, 904 Buford, raised questions about the possibility of the Lady Lex going to Quincy, Massachusetts and expressed concern about the proposed traffic on Corpus Christi Beach. In regard to Item 8, Council Member Slavik stated that she did not receive a notice of intention to issue Certificates of Obligation for the marina. On Item 9, Mrs. Slavik pointed out that in the notice of intention to issue Certificates of Obligation for the Lady Lex, the maximum amount of Certificates of Obligation indebtedness that may be authorized for such purpose is $3,000,000. City Secretary Chapa polled the Council for their votes and the following items wee passed: 7. M92-027 Minutes Regular Council Meeting February 4, 1992 Page 7 Motion authorizing the City Manager to proceed with the preparation of the Official Statement for the sale of $11,550,000 General Improvement Bonds, Series 1992 (Airport - $185,000; Drainage - $890,000; Parks & Recreation - $2,590,000; Library Books - $250,000; Public Health & Safety - $1,065,000; Streets -$6,570,000); $3,000,000 Combination Tax and Municipal Hotel Occupancy Tax Certificates of Obligation, Series 1992 for improvements and equipment associated with the berthing of the U.S.S. Lexington in Corpus Christi, Texas including public utilities and public access thereto, and the acquisition of museum exhibits, to be located thereon, and the payment of fiscal, engineering, and legal fees incurred in connection therewith; and $500,000 Combination Tax and Marina Revenue Certificates of Obligation, Series 1992-A, for Marina improvements; and authorizing the City to obtain the services of M E Allison & Co., Inc. as financial advisor, and McCall, Parkhurst & Horton as Bond Counsel. The foregoing motion passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, McNichols, Moss and Slavik voting, "Aye"; Guerrero absent. 8. RESOLUTION NO. 021326 BY THE COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, DIRECTING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION, SERIES 1992-A; AND RESOLVING OTHER MA I PERS RELATING TO THE SUBJECT. The foregoing resolution passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, McNichols, Moss and Slavik voting, "Aye"; Guerrero absent. 9. RESOLUTION NO. 021327 BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, DIRECTING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION, SERIES 1992; AND RESOLVING OTHER MA1'1'FRS RELATING TO THE SUBJECT. The foregoing resolution passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, McNichols, Moss and Slavik voting, "Aye"; Guerrero absent. Relative to Item 10, Public Utilities Advisory Committee, City Manager Garza recommended that a deletion be made in Section 2-218 of the ordinance. He recommended that item A should read as follows: 'The Committee shall make its written recommendation on rates to the Council no later than May 15 each year in order to timely assist completion of the City budget. Such recommendation must be adopted by a majority of the Committee. If a majority cannot agree, the matter shall be referred to the Mayor and Council without recommendation." Minutes Regular Council Meeting February 4, 1992 Page 8 Mayor Rhodes moved to amend the ordinance as proposed by City Manager Garza. The motion was seconded by Council Member Slavik and passed unanimously; Guerrero absent. City Manager Garza provided background information and noted that one of the recommendations of the Operations Analysis was to establish a Public Utilities Advisory Committee to annually review rates and oversee the implementation of the findings of the audit. He stated that it would provide a forum for the staff to conduct public hearings on the proposed budgets for the public utilities, justify rates, and settle questions from the public. Council Member Slavik asked about other cities who have Utility Advisory Committees, and City Attorney Bray stated that Austin and El Paso have committees which have been established for quite some time. Council Member Martin referred to the establishment of appointment terms and stated that he did not see any reason why there have to be specific dates. City Attorney Bray stated that staff attempted to get a starting point that was somewhere in the off season in the rate making process and believed it would be better to have a firm date for commencement of the terms. Mr. Martin suggested passing the ordinance on first reading with the Council submitting their comments and amendments during the process. He also suggested scheduling the appointments on the day of the third reading. Council Member McComb expressed reservations about the ordinance. Mayor Pro Tem Galindo stated that the Operations Analysis indicated that the majority of the public does not have any concept of what it costs to treat a gallon of water. He stated that for the sake of getting this information to the public, this would be a good reason to create the committee. Following a question and answer period, City Manager Garza stated that he intends to use the committee as a forum to put out proposals and get information to the public. He stated that the process would be similar to the process followed for the CDBG program, whereby by the time it comes to the Council, there have been public hearings and information and ideas have been given by the public. Mr. McComb suggested that the Council may want to establish a policy that there would not be a presentation and a motion of adoption and implementation on the same date. Council Member McNichols stated that as a forum for discussion and input from the public, and as an educational tool to the public about the utility system, he believes this is an excellent idea. He expressed the opinion that he does not think that this should be an advisory committee who recommends rates to the Council for adoption. Mr. J. E. O'Brien, 4130 Pompano, stated that on January 22, 1991, Council Member McComb voted in favor of forming a utility committee. He inquired if a function of the City of Corpus Chnsti August 4, 1992 NCL Ccaference Registration Center Dallas International Airport P.C^Box 17413 Was' ington, D.C. 20041 Re: /992 Congress of Cities and Exposition, New Orleans, La., October 27, 1992 through Gentler,,=n: Ple,zse process the enclosed application for Council Member Slavik and husband. If ad&tional information is required, please contact my office. Thank you. Sincerely, Armando Chap City Secretary AC/kp Enclosure cc: Council Member Mary Pat Slavik 412 Palmetto Corpus Christi, Texas 78412 Enclosure Minutes Regular Council Meeting February 4, 1992 Page 9 committee, to hear staff presentations on proposed utility rate increases, is incorporated into the ordinance, and City Manager Garza replied in the affirmative. City Secretary Chapa polled the Council for their votes and the following ordinance passed on first reading, as amended. 10. FIRST READING ESTABLISHING A PUBLIC UTILITIES ADVISORY COMMTI"1'E.E, ITS DUTIES AND PROCEDURES. The foregoing ordinance passed on first reading by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, Moss and Slavik voting, "Aye"; McNichols voting, "No"; Guerrero absent. Mayor Rhodes called for consideration of Item 11, Ingleside Industrial District, and City Manager Garza advised that last year the Council approved a cession agreement with the City of Ingleside, whereby any lands not annexed by the City of Ingleside within a twelve-month period would revert back to the City. He stated that Ingleside has approached Corpus Christi, at the request of the Economic Development Corporation, to amend that agreement and allow the creation of industrial districts in the subject areas instead of annexation. Bill Hennings, Director of Development Services, displayed a map of the area; he provided background information; and he reviewed the request by the city of Ingleside. Council Member Martin inquired about the reason the City was requested to cede the ETJ, and Mr. Hennings stated that the City of Ingleside planned to annex and provide services in the area. Mr. Hennings stated that the City of Corpus Christi did not have plans to provide services in that area or to annex. Mr. Martin inquired if this is an official action of the Economic Development Board that they want to establish industrial districts or is this a staff attempt on behalf of the property owners. Mr. Gary Bushell, Economic Development Corporation, stated that this was a situation where they became aware of the desire to annex some of the best industrial undeveloped property along the channel. He stated that they feel it would make it much more difficult for them to market effectively that property for industrial use if it were part of and annexed by the City of Ingleside. He stated that they asked the City of Ingleside to follow the lead of Corpus Christi in terms of how it deals with its industrial areas. Mr. Martin stated that he would like more information on this matter. He stated that he supports industrial districts but one of the basis for industrial districts is to remove things from the control of the municipal government and control by a municipal government was the argument which was made to the Council last year as to why they should cede this. a Minutes Regular Council Meeting February 4, 1992 Page 10 He suggested this be referred to staff to consider options in the best interest of the City of Corpus Christi. Mr. Steve Fitzgibbons, City Manager of Ingleside, stated that regarding the question of control, they have zoning ordinances and this industrial district is geared to their zoning ordinance. He stated that if they change their industrial district zoning, it automatically changes in the industrial district. He stated that their intention is to annex if they cannot establish industrial districts. A brief question and answer period followed. It was noted that this area abuts Ingleside on the Bay, and Council Member McNichols expressed concern about how a heavy industrial district would affect the individuals in Ingleside on the Bay. City Secretary Chapa polled the Council for their votes and the following resolution was passed: 11. RESOLUTION NO. 021328 CONSENTING TO THE CREATION OF INDUSTRIAL DISTRICTS WITHIN THE AREA CEDED TO THE CITY OF INGLESIDE; AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE CITY OF INGLESIDE - CITY OF CORPUS CHRISTI 1991 CESSION AGREEMENT. The foregoing resolution passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, Moss and Slavik voting, "Aye"; McNichols voting, "No"; Guerrero absent. s s s s s s s s a s s s s Mayor Rhodes announced that the closed session has been withdrawn. Mayor Rhodes called for the City Manager's report, and City Manager Garza presented a water update on Lake Corpus Christi and Choke Canyon. Mrs. Rhodes referred to the Water Shore Advisory Committee and advised that they have not been utilized by the City. She stated that staff needs to be more sensitive in keeping them updated and noted that the committee is interested in possible solutions and resolutions to the Padre Isle channels. City Manager Garza stated that he will request formal action from them. Mrs. Rhodes reminded the public of the appointments to the Public Utilities Advisory Committee. She suggested that anyone who is interested in serving on that conunittee should contact her office or any of the Council Members. Mayor Rhodes called for Council liaison reports. Minutes Regular Council Meeting February 4, 1992 Page 11 Council Member McComb commented in regard to a situation at a former Exxon Gas Station on Everhart and Shannon and requested that the site be looked into, and City Manager Garza stated that he will provide a report on this issue. Council Member Slavik requested a report on how much of the Water Funds are diverted to the Street Department for their operations. Mrs. Slavik referred to a hazardous waste memorandum and requested that a Mrs. Irene Blackledge be sent copies of any relevant information about the City's plan for a hazardous waste facility. Mrs. Slavik stated that Mrs. Blackledge has been in charge of a City-wide volunteer hazardous waste clean-up program. Mrs. Slavik commended the Mayor's committee on recycling for drawing up a hazardous waste proposal. Mrs. Slavik raised questions regarding contractors doing a poor job on a City project and asked if staff recommends that they not be used in the future, stating that she would hope that they would not. City Manager Garza reported on this issue and stated that there have been occasions when staff has recommended to the Council not to do business with a contractor because of poor work. Council Member McNichols complimented the City Manager for the report on the storm water drainage activities. He pointed out that the City is doing what it can to deal with the issue of storm water drainage regarding the water that runs down the street and backs up in the yard. Dr. McNichols referred to the Interim Operating Plan for Reservoirs and asked if the plan has been signed by everyone, and Deputy City Manager Garza replied that Ingleside is not going to sign and the hearing examiner has given them until February 14 to make a decision. He stated that staff has written the examiner and indicated that the February 14 date is too long a time frame and February 5 would be more preferable. He noted that the City has not yet received a response. Council Member Moss requested a report on what the City is doing about chuck holes, and Tom Utter, Public Works Director, gave a report on the problem. Council Member Longoria asked for a report on roof leaks at the airport, and City Manager Garza stated that he will check into the matter. Mayor Rhodes called for petitions from the audience on matters not scheduled on the agenda. Mr. Tommy Akard, 411 Waco, spoke on the subject of EPA storm water runoff testing and questioned why the contract was not bid, and City Manager Garza stated that the City does not utilize bidding procedures for professional services. He stated that the Minutes Regular Council Meeting February 4, 1992 Page 12 Council Member Slavik asked why the City does not obtain bids for professional services, and City Manager Garza stated that State law does not allow bidding on certain professional services. Mr. Ron Hudson, 3556 Austin, raised questions about the statue on the Lawrence Street T -head and spoke about City property being used improperly. He presented material to the Council regarding deeds. Mayor Pro Tem Galindo reviewed the status of the statue on the Lawrence Street T -head. Mr. Phil Rosenstein, 949 Bobalo, spoke on the subject of Silver -Haired Legislature. There being no further business to come before the Council, Mayor Rhodes declared the Council Meeting adjourned at 5:20 p.m. on February 4, 1992. h i t t**••♦ i i■ 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 February 4, 1992, which were approved by the City Council on February 11, 1992. WITNESSETH MY HAND AND SEAL, this the 9th day of March, 1992. Armando Chapa City Secretary SEAL