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HomeMy WebLinkAboutMinutes City Council - 03/17/1992MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting March 17, 1992 2 p.m. PRESENT Mayor Mary Rhodes Mayor Pro Tem Cezar Galindo Council Members: Leo Guerrero Betty Jean Longoria Edward Martin Joe McComb Clif Moss Mary Pat Slavik City Manager Juan Garza City Attorney James R. Bray, Jr. Assistant City Secretary Dorothy Himmel Absent Dr. David McNichols Mayor Rhodes called the meeting to order in the Council Chamber of City Hall. The invocation was delivered by Pastor Jess White of Glad Tidings Assembly of God, following which the Pledge of Allegiance to the Flag of the United States was led by Council Member Guerrero. Assistant City Secretary Himmel 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 March 10, 1992, and there being no corrections, she proclaimed them approved as presented. Ms. Ruie Slinger Carroll, Chairman of the Corpus Christi Mayor's Council on Senior Citizen Affairs, spoke about the mission of the Council and reviewed upcoming events. She announced that they will hold their 4th Kick -Off on April 24th. Ms. Elva Alba presented the Council with a resource directory for senior citizens in Corpus Christi. MICROFILMED Minutes Regular Council Meeting March 17, 1992 Page 2 Mayor Rhodes presented a Certificate of Commendation to Mr. Mike De La Garza, Vice President of Public Affairs for H.E.B. Grocery Company, for H.E.B.'s significant contribution toward the quality of life in Corpus Christi. Mayor Rhodes presented a plaque and a Proclamation to Dorothy Himmel, Assistant City Secretary, in special recognition for twenty years of service to the community. Mrs. Rhodes proclaimed Friday, March 20, 1992, as "Dorothy Zahn Himmel Day in Corpus Christi." Assistant City Secretary Himmel expressed appreciation to the City Council, the City Secretary and City staff for all of their assistance during her tenure with the City. Mayor Rhodes declared a ten-minute recess so that the Council Members could bid farewell to Mrs. Himmel t i f t•••• f# t Y■ Mayor Rhodes reconvened the Council Meeting and called for consideration of a special policy issue regarding the refunding of outstanding General Improvement Bonds. City Manager Garza provided background information and stated that due to the attractive bond market created by recent declines in interest rates, staff has studied the impact of a possible debt restructuring. He stated that staff structured a deal which not only allows the City to sell bonds this year but provides enough margin next year to also sell the final installment of bonds at about the same tax rate the City would have if bonds are not sold. He elaborated on reasons for the restructuring and presented a slide presentation regarding the 1986 Bond Program Summary of FY 1991-92 bond sale. He stated that the proposed bond sale is $11,550,000; $500,000 in Certificates of Obligation for the Marina; and $3,000,000 Combination Tax and Municipal Hotel Occupancy Tax Revenue Certificates of Obligation. Mr. Garza continued by stating that if the City did not refinance and sold bonds, taxes would have to go up one cent this year and one cent next year. He stated that this will push more debt into future years, but it gives the City the flexibility to sell bonds. Mr. Garza stated that other Texas cities have taken similar action and the bond rating agencies and bond insurance companies generally regard a reasonable restructuring as sound debt management at this opportune time. Mr. Garza stated that restructuring the City's debt at this time represents a proactive move to position ourselves for the future. He indicated that the cost of restructuring the City's debt is an increase in future principal and interest requirements over the twenty-year life of the refunding bonds of approximately $7.5 million. He stated that the interest rate provides an opportunity to restructure at this time, but the City will still end up paying more in overall interest. Council Member Moss stated that the City needs to get all of the bond projects under way. He raised questions about the tables which were presented. Mr. Moss stated Minutes aegular Council Meeting March 17, 1992 Page 3 that he foresees that the City will need to have more capital improvement projects in the next six or eight years. Mr. Moss stated that when the 1986 Bond Program was approved, the voters were told that there would be a three -cent increase in the tax rate. Council Member Guerrero expressed the opinion that the City is a multi-million dollar business and this is no more than creative financing. He moved to authorize the City Manager to take the action necessary to refund the outstanding General Improvement Bonds. The motion was seconded by Council Member Longoria. Council Member Slavik expressed concern about the $7.5 million additional expense. She asked about the advantage of using a negotiated sale versus putting it out for bid, and City Manager Garza stated that staff is structuring the Bond Sale based on conditions at that time. Mrs. Slavik stated that she would have preferred to study the Preliminary Official Statement and suggested postponing the vote until next week in order for the Council to study the material. Mrs. Slavik suggested slowing down the Bond Program and stated that people are reasonable and would understand if the City had to delay some of the projects. City Manager Garza stated that it has not been his practice to present the Preliminary Official Statement to the Council until the date of the meeting. Mayor Rhodes inquired about the significance of waiting another week, and City Manager Garza stated that a trip to New York has been scheduled to visit the bond rating agencies and he would rather make the trip knowing that the Council approved the proposal. Council Member McComb raised questions about the tables, and responding to his question, City Manager Garza stated that the City would propose to finance capital improvements for the water and wastewater systems using revenue bonds, not General Improvement Bonds. Mr. McComb referred to the library books and expressed concern about financing library books over twenty years, and City Manager Garza stated that he would not recommend putting books in a bond election, but it was done and the City needs to move forward and complete the implementation. Mr. McComb referred to airport improvements, and City Manager Garza stated that every opportunity the City has to match funds it does. Mr. Garza stated that the Airport is paying 100 percent of their debt, stating that revenues not only pay for operations, but also debt service. Mr. Raymond Hasker, 1813 Wallace, spoke against the restructuring and expressed concern that the Council would vote on an item without reading the Preliminary Official Statement. He stated that the refund will cost the City over $7.5 million. Mr. Charles McCaleb, 123 Oleander, expressed concern about the City's continual refunding. He stated that the City should take care of its debts and stop paying excessive interest. Minutes Regular Council Meeting March 17, 1992 Page 4 Mr. J. E. O'Brien, 4130 Pompano, objected to the refunding of bonds, mentioning that this is the third refunding. He expressed the opinion that the refunding of bonds is in violation of the City Charter because the City Charter dictates that an election must be conducted to approve expenditure of funds. He informed the Council that the Taxpayers Association voted to have their attorney prepare a Legal brief on this issue. He suggested that the Council postpone the vote until they have had a chance to review the Preliminary Statement. Mr. Al Jones, 402 Miramar, President of American National Bank, spoke in favor of the proposal. He stated that from a business decision standpoint, it makes eminent sense to take advantage of today's interest rate environment. Mr. Bernard Paulson, 5310 Greenbriar, President of the Board of Trade, stated that the Board passed a resolution in support. Mr. Mike Nogueira, 15357 Key Largo, Texas Commerce Bank, stated that those in the banking industry see a tremendous movement in today's environment to refinance debt. He stated that there has never been a better opportunity to take advantage of lower interest rates. Council Member Martin asked the City Attorney if he is comfortable that the action being recommended is consistent with the Charter, and City Attorney Bray responded in the affirmative. He stated that the Attorney General has approved these in the past and has looked at the City's Charter provisions. Mr. Martin referred to the Preliminary Official Statement and noted that most of the document is data which has been approved at one time, with the exception of the structure of these bond issues. Responding to a question from Council Member Martin, City Manager Garza stated that the Certificates of Obligation for the Lady Lexington are not part of the refunding action. Following a lengthy discussion, City Manager Garza responded to specific questions about the restructuring and the various tables which were presented to the Council. Mr. Martin asked if the bonds are being insured, and City Manager Garza stated that the City will try to insure them if it is economical. He noted that if it is economically feasible, they will be insured. Mr. Martin stated that this is a very expensive proposition but one worth risking. He stated that doing a refunding is not improper because even though you are delaying some of the debt for future generations, you have to operate on the hope that those future generations are going to have a much greater tax base and won't have problems paying off the debt. Mr. Martin expressed the opinion that the City cannot afford to delay its capital improvement program or a two -cent tax increase to finance bond sales. Assistant City Secretary Himmel polled the Council for their votes and the motion made previously passed by the following vote: Minutes .2egular Council Meeting March 17, 1992 Page 5 2. M92-060 Motion authorizing the City Manager to take action necessary to refund outstanding General Improvements Bonds in an amount up to $15 million in conjunction with the sale of $11,550,000 General Improvement Bonds, Series 1992; authorizing the sale of $3,000,000 Combination Tax and Municipal Hotel Tax Revenue Certificates of Obligation, Series 1992; and the sale of $500,000 Combination Tax and Marina Revenue Certificates of Obligation, Series 1992-A; and approving use of the Preliminary Official Statement. The foregoing motion passed by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb and Moss voting, "Aye"; Slavik voting, "No"; McNichols absent. ■! f f t# f i■ i t i i Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 3 through 11, noting that Items 7 has been tabled. Council Members requested that Items 3, 4, 5, 6, 8 and 10 be withheld for discussion. Council Member Martin declared that he had previously filed a disclosure affidavit on Item 11 and will abstain from the discussion and vote. Assistant City Secretary Himmel polled the Council for their votes and the following were passed: 9. FIRST READING AUTHORIZING THE EXECUTION OF AN EARNEST MONEY CONTRACT AND QUIT CLAIM DEED TO REED S. CLARK FOR A .127 ACRE TRACT OF ABANDONED RAILROAD RIGHT-OF-WAY OUT OF THE CORPUS CHRISTI BEACH HOTEL. The foregoing ordinance passed on first reading by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, Moss and Slavik voting, "Aye"; McNichols absent. 11. ORDINANCE NO. 021348 AUTHORIZING THE EXECUTION OF A SIXTY -YEAR USE AGREEMENT WITH THE CORPUS CHRISTI BOTANICAL SOCIETY FOR THE USE OF 180.85 ACRES OF PARK LAND ADJACENT TO OSO CREEK AS A BOTANICAL GARDEN; AND PROVIDING FOR PUBLICATION. Minutes .4egular Council Meeting March 17, 1992 Page 6 The foregoing ordinance passed on third reading by the following vote: Rhodes, Galindo, Longoria, McComb, Moss and Slavik voting, "Aye"; Martin abstaining; Guerrero absent at the time the vote was taken; McNichols absent. Responding to a question from Mayor Pro Tem Galindo on Item 3, contracts for Lexington, City Manager Garza commented about the contracts and stated that there may be other contracts in the future which will be brought before the Council, and Council Member Martin added that from time to time, the various Lexington contracts will be on the agenda for Council concurrence in awarding the contracts. Relative to Item 4, authorizing agreements related to the Court of St. James Subdivision public improvements, Council Member Slavik inquired about the funding sources, and Carl Crull, Engineering Services Director, stated that funding for the improvements would be taken from the Street Bond Fund and the water line improvements would be taken out of the Water Operating Fund. In response to a question from Council Member Moss, Mr. Crull stated that the City is paying for the improvements because they are adjacent to a City park. Mr. Moss inquired when the item about improving street specifications will be presented to the Council, and Mr. Crull responded that staff is continuing to work on that item. Mr. Moss inquired if this street will have the improved specifications, and Mr. Crull replied that it would not. Mr. Moss expressed concern that the City continues to authorize and build streets that are sub- standard. City Manager Garza stated that the street is being built in accordance with existing City standards and that staff is attempting to improve the standards, but there are some projects that are approved during the interim period. Mr. Moss expressed concern that the City will continue to design sub -standard work until a new standard is brought forth. Responding to a question from Council Member Martin, Mr. Crull reviewed the status of the project and indicated that it is fairly far along. He stated that he has not worked up any cost differentials as to what it would cost to do the street to a higher standard. Pertaining to Item 5, execution of an agreement with the Coastal Bend Alcohol & Drug Rehabilitation Center, Inc., Council Member Slavik inquired about the balance needed for the project, and Tom Utter, Director of Development Services, stated that approximately $80,000 is needed over and above the amount reported in December of 1991. He stated that it is his understanding that they have applied under the CDBG Program for those additional funds. Mr. Utter stated that staff recommends that they be given the responsibility of raising those additional funds. Council Member Longoria expressed concern that the facility used to house female and male residents who are alcoholics and drug addicts receiving treatment will be located so near a school. Minutes Regular Council Meeting March 17, 1992 Page 7 Discussion ensued and in response to a question from Council Member McComb, Kelly Elizondo, Director of Housing Community Development, stated that they will be able to serve considerably more clients than predicted in the original proposal. He stated that the area is zoned "B-4." Mayor Rhodes noted that bars and restaurants could be built in this location and this facility would be more of a hospital setting. Council Member Slavik approved of the concept but expressed concern about the facility being so close to schools. Mr. Joe West, Project Administrator for Coastal Bend Alcohol & Drug Rehabilitation Center, Inc., reviewed the plans for the facility and stated that it is an institutional type of environment. He stated that a barrier would be erected which would bar any kind of access from the school to the building. Relative to Item 6, park improvements, Council Member Longoria referred to Violet Park and inquired if there will be any parking improvements, and City Manager Garza responded in the affirmative. He stated that at this time, there are not sufficient funds for paving but the paving is forthcoming and will be included in the next Bond Program. On Item 8, submission of a grant application to the Criminal Justice Division of the State of Texas for the D.A.R.E. Program, Council Member Slavik asked if any research had been done to show how effective the program has been, and Police Chief Garrett stated that staff is in the process of doing that. He stated that it is a very good program, and Mayor Rhodes added that it is the best program in the school system today. Pertaining to Item 10, Holiday Inn Emerald Beach, Mr Jimmy Till, 1265 Southern Minerals Road, stated that he had previously questioned this ordinance authorizing the operation of a beverage snack bar at the rear of the Holiday Inn. He complimented the staff and the Holiday Inn for the public access signs which have been installed. Assistant City Secretary Himmel polled the Council for their votes and the following were passed: 3. M92-062 Motion concurring in the award of contracts by the Lady Lex Museum on the Bay Association for reimbursement to the Port Authority of Corpus Christi for dredging costs, and for fabrication of precast -prestressed concrete piles for the approachway. The foregoing motion passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, Moss and Slavik voting, "Aye"; Guerrero absent at the time the vote was taken; McNichols absent. 4a. M92-062 Minutes Regular Council Meeting March 17, 1992 Page 8 Motion approving a Participation Agreement with Tri Star Development, Inc. for improvements to portions of Lipes Boulevard of which the City's share of costs is estimated at $99,652.08. The foregoing motion passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb and Slavik voting, "Aye"; Moss voting, "No"; Guerrero absent at the time the vote was taken; McNichols absent. 4b. M92-063 Motion approving a Participation Agreement with Tri Star Development, Inc. for the City's share of bridge construction across a drainage channel to link Lipes Boulevard to Cedar Pass Drive of which the City's share of costs is estimated at $33,472.78. The foregoing motion passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, Moss and Slavik voting, "Aye"; Guerrero absent at the time the vote was taken; McNichols absent. 4c. M92-064 Motion approving an Escrow Agreement with the Corpus Christi Independent School District and Tri Star Development, Inc. for extension of a 12 -inch water grid main across school district frontage estimated at $39,679.33. The foregoing motion passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, Moss and Slavik voting, "Aye"; Guerrero absent at the time the vote was taken; McNichols absent. 5. M92-065 Motion authorizing the City Manager or his designee to execute an agreement with the Coastal Bend Alcohol and Drug Rehabilitation Center, Inc., which provides $149,200 from the FY 91 Community Development Block Grant Program for the acquisition and rehabilitation of property located at 1733 Brownlee. The foregoing motion passed by the following vote: Rhodes, Galindo, Martin, McComb, Moss and Slavik voting, "Aye"; Longoria voting, "No"; Guerrero absent at the time the vote was taken; McNichols absent. 6a. M92-066 Motion awarding a contract in the amount of $369,500 to Progressive Structures, Inc., to construct improvements to the Cullen, Sam Houston, South Sea, Violet, and Waldron Parks. Minutes ttegular Council Meeting March 17, 1992 Page 9 The foregoing motion passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, Moss and Slavik voting, "Aye"; Guerrero absent at the time the vote was taken; McNichols absent. 6b. ORDINANCE NO. 021345 APPROPRIATING $21,489 FROM THE NO. 111 WALDRON PARK TRUST FUND, APPLICABLE TO PROJECT NO. 291-601-607.79, FOR THE CONSTRUCTION OF IMPROVEMENTS IN CULLEN, SAN HOUSTON, SOUTH SEA, VIOLET, AND WALDRON PARKS; AND DECLARING AN EMERGENCY. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, Moss and Slavik voting, "Aye"; Guerrero absent at the time the vote was taken; McNichols absent. 6c. M92-067 Motion waiving the forfeiture of the bid bond of Construction Assistance and Services, Inc. in connection with the improvements to the Cullen, Sam Houston, South Sea, Violet and Waldron Parks. The foregoing motion passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, Moss and Slavik voting, "Aye"; Guerrero absent at the time the vote was taken; McNichols absent. 7. Tabled Y t . Y . • BAY. ''a-11.• i \ _ . 'It" _ t • t 8. RESOLUTION NO. 021346 APPROVING AND AUTHORIZING THE SUBMISSION OF A GRANT APPLICATION IN THE AMOUNT OF $11,066 TO THE CRIMINAL JUSTICE DIVISION OF THE STATE OF TEXAS FOR THE DRUG ABUSE RESISTANCE EDUCATION PROGRAM (D.A.R.E.). The foregoing resolution passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, Moss and Slavik voting, "Aye"; Guerrero absent at the time the vote was taken; McNichols absent. 10. ORDINANCE NO. 021347 AMENDING THE USE PRIVILEGE AGREEMENT AUTHORIZED BY ORDINANCE NO. 14634, PASSED NOVEMBER 22, 1978, AND AMENDED BY ORDINANCE NO. 20130, PASSED DECEMBER 22, 1987, TO ALLOW TEMPLE- Minutes Regular Council Meeting March 17, 1992 Page 10 INLAND INSURANCE CORP. TO OPERATE A BEVERAGE/SNACK BAR ON THE TIMBER DECK OVER CORPUS CHRISTI BAY AT THE REAR OF HOLIDAY INN EMERALD BEACH; AND AUTHORIZING A FIVE (5) YEAR CONCESSION AGREEMENT HAVING A MONTHLY REVENUE OF $300 PER MONTH; AND PROVIDING FOR PUBLICATION. The foregoing ordinance passed on third reading by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, Moss and Slavik voting, "Aye"; Guerrero absent at the time the vote was taken; McNichols absent. Mayor Rhodes called for consideration of Item 12, northwest area water system improvements. Council Member Moss raised questions about the amount of the contract, and Carl Crull, Engineering Services Director, stated that $96,000 is the basic service fee for the design and construction phase and $7,000 are for special services. He stated that this is a fair price and in line with the guidelines published by the Consulting Engineering Council of Texas and the Texas Society of Professional Engineers. Council Member Slavik expressed concern about the expense, and Mr. Crull reviewed the status of the project. Mrs. Slavik asked how much was authorized for the project in the 1989-94 Bond Program, and City Manager Garza stated that the project was in the Capital Improvements Program, but not in the Bond Program. Council Member McComb referred to the Council policy about local participation, and Mr. Crull stated that the initial amendment to the contract was negotiated prior to the Council setting the policy of seventy-five percent local participation. He discussed the project and stated that the overall local participation in the project will be at least sixty-one percent. Mr. McComb asked how that is monitored, and Mr. Crull replied that when the City receives the invoices for the monthly billings, they are broken down between the two companies and there is a provision in the contract that the City has a right to audit the books of both firms. Mr. McComb suggested that this be monitored. Mr. McComb raised various questions about the amendment to the contract, and expressed concern about multiple phase contracts and suggested that the City should solicit requests for proposals for subsequent phases of a project. Mr. Crull stated that in this particular project, staff knew going in what the problem was in the preliminary phase, but did not know what the solutions would be and the estimated costs of the solutions, and for that reason did not negotiate the design phase at that time. City Manager Garza stressed the importance of this project for the northwest, and Council Member McComb stated that he is not opposed to the project, but concerned about Minutes Regular Council Meeting March 17, 1992 Page 11 the issue of how the City goes about obtaining engineering services. He suggested that this be an item for discussion at another time. Council Member Martin inquired how much was budgeted for the study and design phase, and Tom Utter, Director of Development Services, stated that there was approximately $300,000 budgeted for the planning and design phase. Mr. Martin pointed out that they did not negotiate a contract equal to the amount available. Responding to a question from Council Member Longoria, Mr. Crull discussed the time frame for the project and stated that the recommendation was divided into four different areas and he reviewed the different contracts. Council Member Slavik concurred with Council Member McComb about professional service not being bid and stated that in the future she would like to have a discussion on this item. Assistant City Secretary Himmel polled the Council for their votes and the following motion was passed: 12. M92-068 Motion approving Amendment No. 1 to the contract for engineering services with Black & Veatch, Inc., in association with Welsh Engineering, in the amount of $103,000 for Design and Construction Phase services to provide modifications and improvements to the Water Distribution System in the Northwest Area to provide improved pressures and volumes. The foregoing motion passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, Moss and Slavik voting, "Aye"; Guerrero absent at the time the vote was taken; McNichols absent. Mayor Rhodes called for consideration of Item 13, agreement with RTA for Transportation Assistance Funds, and City Manager Garza provided background information and stated that the agreement goes a long way in solving the City's funding problems for EMS. Council Member McComb expressed support of the agreement and advised that the City Manager is currently having discussions with Memorial Medical Center about their participation in the future. Council Member Slavik asked about the total EMS budget for the City, and City Manager Garza stated that it is approximately $3.5 million. She expressed disappointment in the RTA's contribution. Minutes Regular Council Meeting March 17, 1992 Page 12 Assistant City Secretary Himmel polled the Council for their votes and the following motion passed: 13. M92-069 Motion approving an interlocal agreement with the Regional Transportation Authority to provide Transportation Assistance Funds in 1992 which would be used to support the City's emergency medical services program. The foregoing motion passed by the following vote: Rhodes, Longoria, Martin, McComb, Moss and Slavik voting, "Aye"; Galindo voting, "No"; Guerrero absent at the time the vote was taken; McNichols absent. Mayor Rhodes called for consideration of Items 14 and 15, new Southwestern Bell Franchise. City Manager Garza provided background information and advised that the franchise agreement developed by Southwestern Bell has been found to be very agreeable by other cities in Texas. He stated that this agreement would bring to the City about $1 7 million annually for the use of City rights-of-way and other ways. He stated that the average residential customer would pay .28 cents more per month, a single line business would pay .68 cents more per month, a multi -line business would pay $2.62 more per month, and a PBX business would pay $6.84 more per month. Mr. Garza stated that this franchise fully compensates the City for the use of public property, establishes a clear contractual relationship with SWB for the future, and creates better uniformity and equality with other Texas cities. Council Member Slavik asked if this agreement has to clear the PUC, and City Attorney Bray replied that it did not. Mrs. Slavik stated that she is opposed to having this fee passed through to the customer and suggested that the company absorb the increase because it is a cost of doing business. Mr. Bray stated that each individual contract does not have to go through the PUC because there is already a rate structure in place that allows street rental fees to be passed through. He stated that a company is entitled to recover their legitimate cost of doing business. Mayor Rhodes inquired if the City has any authority to tell Southwestern Bell that they cannot pass this on, and Mr. Bray stated that the only input cities have is whenever there is a rate case filed with the PUC, cities can intervene and be part of the rate case. Mrs. Slavik expressed concern that the City is giving up its rights to collect these underpayments. She inquired if this agreement is accepted with SWB, how much money in underpayments the City would be forfeiting, and Mr. Bray replied that would involve amounts that are in dispute and he suggested that be covered in closed session. Minutes Regular Council Meeting March 17, 1992 Page 13 Discussion ensued and Mrs. Slavik requested a copy of the franchise fee audit for Southwestern Bell and CP&L and a copy of the contract. Council Member Martin inquired if the City has resolved any claims by the consultants, and City Attorney Bray stated that they have not been resolved and are in negotiation. The Council decided to pass this item on first reading and schedule a closed session next week. Mr. J. E. O'Brien, 4130 Pompano, expressed concern in regard to the mutual release on claims. He noted that there are some unresolved issues, but they are not spelled out. He suggested that the issues be spelled out before approving the agreement. Mr. O'Brien expressed concern about passing on the franchise fee cost to the ratepayer. Assistant City Secretary Himmel polled the Council for their votes and the following ordinances were passed on first reading: 14. FIRST READING WHEREBY THE CITY OF CORPUS CHRISTI, TEXAS, AND SOUTHWESTERN BELL TELEPHONE COMPANY AGREE TO EXTEND THE TERM OF ORDINANCE NO. 20882 PASSED ON THE 6TH DAY OF MARCH, 1990, RELATING TO USE OF PUBLIC STREETS AND WAYS BY THE COMPANY AND THE CONDITIONS AND COMPENSATION THEREFORE. The foregoing ordinance passed on first reading by the following vote: Rhodes, Longoria, Martin, McComb and Moss voting, "Aye"; Galindo and Slavik voting, "No"; Guerrero absent at the time the vote was taken; McNichols absent. 15. FIRST READING WHEREBY THE CITY OF CORPUS CHRISTI, TEXAS, AND SOUTHWESTERN BELL TELEPHONE COMPANY AGREE THAT, FOR THE PURPOSE OF OPERATING ITS TELECOMMUNICATIONS BUSINESS, THE TELEPHONE COMPANY SHALL MAINTAIN AND CONSTRUCT ITS POLES, WIRES, ANCHORS, FIBER, CABLES, MANHOLES, CONDUITS AND OTHER PHYSICAL PLANT AND APPURTENANCES IN, ALONG, ACROSS, ON, OVER, THROUGH, ABOVE AND UNDER ALL PUBLIC STREETS, AVENUES, HIGHWAYS, ALLEYS, SIDEWALKS, BRIDGES OR PUBLIC WAYS IN SAID CITY; PRESCRIBING THE ANNUAL COMPENSATION DUE THE CITY UNDER THIS ORDINANCE; PRESCRIBING THE CONDITIONS DUE THE CITY UNDER THIS ORDINANCE; PRESCRIBING THE CONDITIONS GOVERNING THE USE OF PUBLIC RIGHTS-OF-WAY AND THE PERFORMANCE OF CERTAIN CONSTRUCTION WORK ON PUBLIC RIGHTS-OF-WAY FOR THE TELEPHONE COMPANY'S TELECOMMUNICATIONS BUSINESS; PROVIDING AN INDEMNITY Minutes Regular Council Meeting March 17, 1992 Page 14 CLAUSE; SPECIFYING GOVERNING LAWS; PROVIDING FOR A RELEASE OF ALL CLAIMS UNDER PRIOR ORDINANCES; PROVIDING FOR FUTURE CONTINGENCIES; PROVIDING FOR WRTI"IEN ACCEPTANCE OF THIS ORDINANCE BY THE TELEPHONE COMPANY; AND PROVIDING FOR A TERM AND AN EFFECTIVE DATE. The foregoing ordinance passed on first reading by the following vote: Rhodes, Longoria, Martin, McComb and Moss voting, "Aye"; Galindo and Slavik voting, "No"; Guerrero absent at the time the vote was taken; McNichols absent. Mayor Rhodes opened the public hearing on adopting the City of Corpus Christi Preservation Plan, an element of the Comprehensive Plan. Brandol Harvey, Planning Director, advised that the ordinance will be a three -reading ordinance. He provided background information and stated that the last Preservation Plan was adopted in the mid -seventies and as a result of that plan, the Historical Cultural zoning regulations were adopted. He stated that the purpose of the Comprehensive Plan is to integrate and coordinate all polices and plans dealing with the physical development of the City. He stated that the role of the Preservation Plan focuses on historic preservation structures and sites, but it also includes preservation of other elements of the community. He stated that with the adoption of the twenty policy statements that are contained in the document, staff will present specific legislation including new zoning regulations. Mr. Harvey indicated that the two primary areas that staff would follow up on based on these policies will be new zoning regulations, and the possibility of a tax abatement program. Planner Michael Gunning presented a slide presentation illustrating some of the policy statements and he identified select sites of properties that have been inventoried as having potential historical significance. Responding to a question from Council Member McComb, Mr Gunning stated that the Preservation Plan only addresses the public's right of access and views to the estuaries and bays. He stated that some of the strategies for protecting the access of views from the bays would have to be City acquisition of certain sites. Mr. McComb questioned Mr. Harvey about the fact that the Preservation Plan establishes restrictions but it does not establish the method of policy for development, and Mr. Harvey responded that the details will be adopted by the Council in the future. Mr. McComb explained his concern as the plan affects the owners of private property, particularly those who purchase property without the knowledge of pending Landmark designations. Mr. Gunning and Mr. Harvey responded to specific questions about the plan. Mrs. Slavik referred to the tax exemption and asked how the term of ten years was chosen, and Mr. Gunning stated that ten years was a period of time that had been suggested Minutes degular Council Meeting March 17, 1992 Page 15 as a reasonable period to allow a property owner to recoup their investment. Mrs. Slavik asked if other cities have this tax abatement provision for historical restoration, and Mr. Gunning stated that he believes San Antonio does have a tax abatement. He stated that he will check into the matter and provide the information to the Council. There were no comments from the audience about the Preservation Plan. Council Member Slavik moved to close the public hearing; seconded by Council Member Moss and passed unanimously by those present and voting. Assistant City Secretary Himmel polled the Council for their votes and the following ordinance passed: 16. FIRST READING ADOPTING THE CITY OF CORPUS CHRISTI PRESERVATION PLAN, AN ELEMENT OF THE COMPREHENSIVE PLAN. The foregoing ordinance was passed on first reading by the following vote: Rhodes, Longoria, Martin, McComb, Moss and Slavik voting, "Aye"; Galindo and Guerrero absent at the time the vote was taken; McNichols absent. Mayor Rhodes opened the public hearing on closing and abandoning Tecolote Road from Up River Road north to the City limits line as previously dedicated by right-of-way easement, subject to the applicant's meeting specified requirements. There were no comments from the audience. Council Member McComb moved to close the public hearing; seconded by Council Member Moss and passed unanimously by those present and voting. Mayor Rhodes advised that the ordinance reading will be presented next week. 17. Postponed .O . •\ • . \ e . . Y e Y • e . e. Y• • • • • ROAD NORTH TO THE CITY LIMITS LINE AS PREVIOUSLY DEDICATED BY RICHT OF WAY EASEMENT RECORDED IN VOLUME 642, PAGES 54 THROUGH 57, NUECES COUNTY DEED RECORDS; SUBJECT TO CERTAIN •. Mayor Rhodes declared that the scheduled closed session has been withdrawn. Minutes .2egular Council Meeting March 17, 1992 Page 16 Mayor Rhodes called for the City Manager's report. City Manager Garza spoke about the upcoming bond rating trip to New York and stated that Bill Hennings, Director of Public Utilities and Public Works, will be in charge of the City while he is in New York. Mr. Garza presented a brief water update. Mayor Rhodes called for Council liaison reports. Council Member Moss referred to an article in the newspaper about rising accidents with emergency vehicles and asked about the City's rate of crashes/fatalities. He also inquired if the City has a policy in place to minimize the City's accidents, and City Manager Garza responded in the affirmative. He stated that the Police Chiefs are looking at further revisions and updates to their policies. Discussion followed and Police Chief Garrett stated that the City has a very detailed policy on pursuit driving. Mr. Moss requested figures of how much the City paid in settlements in the last calendar year. Council Member Moss complimented the City Manager on the organizational chart and stated that it is very meaningful and he hopes that it is kept up to date. Council Members Martin and McComb expressed words of appreciation to Assistant City Secretary Himmel. They stated that they are going to miss her a great deal and wished her a happy retirement. Mr. McComb inquired about the status of the signal lights on Shoreline at the Lawrence Street T -Head, and City Manager Garza stated that he will provide a report to the Council on this matter. There were no petitions from the audience. Mayor Rhodes adjourned the Council Meeting at 5:30 p.m. on March 17, 1992. 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 March 17, 1992, which were approved by the City Council on March 24, 1992. WITNESSETH MY HAND AND SEAL, this the 8th day of April, 1992. ra Yr--v-r✓e eyc Armando Chapa City Secretary SEAL