HomeMy WebLinkAboutMinutes City Council - 05/12/1992MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Council Meeting
May 12, 1992
2 p.m.
PRESENT
Mayor Mary Rhodes
Mayor Pro Tern Betty Jean Longoria
Council Members:
Cezar Galindo *
Joe McComb
Dr. David McNichols
Clif Moss
Mary Pat Slavik
Absent
Leo Guerrero
Edward Martin
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 Pat Bullock of Aimaville Baptist Church,
following which the Pledge of Allegiance to the Flag of the United States was led by Council
Member Clif Moss.
Mayor Rhodes recognized a group of fifth grade students from Sanders Elementary
School who invited the Council to a D.A.R.E. graduation party on Monday, May 18 in the
school cafeteria.
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 May 5, 1992, and there being no corrections, she proclaimed them approved as presented.
Mayor Rhodes announced that the third reading of the Animal Control Ordinance
will be on next week's agenda. Because of the numerous questions regarding the livestock
and fowl, Mayor Rhodes requested that portion of the ordinance be given a full hearing by
AIERaakblED
Minutes
Regular Council Meeting
May 12, 1992
Page 2
the Animal Control Board. She also requested that the third reading of the ordinance be
presented with only the portion relating to dogs.
Mayor Rhodes referred to the Board and Committee appointments and the following
appointments were made by the Council: (M92-113)
Kennedy Causeway Advisory Committee
George Clower - Reappointed
James N. Lewis II - Reappointed
Jack Ratkovic - Reappointed
Lamont Taylor - Reappointed
Cora Chisolm - Reappointed
John Parmer - Reappointed
Pat Suter - Reappointed
Marie Spear - Reappointed
Bette Harris - Reappointed
Joseph E. Alexander - Reappointed
Frank D. Hankins - Reappointed
s t e♦ s t a a t s s• s
Mayor Rhodes called for consideration of consent motions, resolutions, ordinances
and ordinances from previous meetings on Items 1 through 6, and Council Members
requested that Items 3, 4, 5 and 6 be withheld for discussion.
City Secretary Chapa polled the Council for their votes and the following were
passed:
1. M92-114
Motion approving an Interlocal Agreement between the City of Portland and the City
of Corpus Christi, both home rule cities pursuant to Interlocal Cooperation Act
Chapter 791 Texas Government Code and other applicable laws giving the City of
Portland full regulatory authority over the newly reconstructed Indian Point Fishing
Pier.
The foregoing motion passed by the following vote: Rhodes, Longoria, McComb,
McNichols, Moss and Slavik voting, "Aye"; Galindo Guerrero and Martin absent.
2. M92-115
Motion concurring in the award of contracts for: (1) towing the USS Lexington from
Ingleside to Corpus Christi to Bay -Houston Towing Company in the amount of
$17,549.50; and (2) water ballasting the USS Lexington in its berth to Bay, Inc., in
the amount of $142,750.
The foregoing motion passed by the following vote: Rhodes, Longoria, McComb,
McNichols, Moss and Slavik voting, "Aye'; Galindo, Guerrero and Martin absent.
Y Y### i i# f i t
Minutes
Regular Council Meeting
May 12, 1992
Page 3
Responding to questions from Council Member Moss on Item 3, Center for Hispanic
Arts, City Manager Garza stated that the organization itself will manage the facility. Mr.
Garza stated that the organization is committed to raising funds and as a sign of their good
faith effort, they are putting $15,000 into the project.
* Council Member Galindo arrived at the meeting.
Council Member Slavik inquired about the land involved for the project, and Carl
Crull, Engineering Services Director, responded that the land consists of approximately an
acre and a half. Mrs. Slavik inquired about the funds for architectural services, and Mr.
Crull stated that the architectural fees listed in the project budget were fees that were
incurred previously.
Relative to Item 4, Department of Defense facility, Council Member Slavik expressed
concern and stated that she would like to add a housekeeping amendment to the resolution
whereby if the City does not make the list of finalists, the election will not be held.
Mayor Rhodes emphasized that if the City does not make the finalist list, the election
will not be called.
Mrs. Slavik expressed the opinion that the City should use all the revenue collected
for this project only to retire the debt early. She made a motion to amend the resolution
and add the following sentence "all revenue collected from the one-half cent sales tax will
be used only for the Department of Defense project to retire the bonds early."
City Manager Garza stated that it could be done that way, and Council Member
McNichols inquired why the City would not want to do it that way, and Mr. Garza explained
that the Council may want to combine the usage of the funds for the DOD project, plus
some other projects in the community.
Mayor Rhodes advised that it is too soon to decide how the ballot should be worded.
She stated that it is an option to consider but it is premature at this time.
City Secretary Chapa advised that the ordinance calling the election does not have
to be passed until December 2nd.
Council Member McComb stated that if the City does not make the finalist list, there
will not be an election. He indicated that he would be the first person to make a motion
to cancel the election.
Council Member McNichols inquired if sales tax revenue is subject to considerable
variation over a period of time, and City Manager Garza responded in the affirmative. He
stated that in the last ten years, there have been a couple of times when the revenues have
actually flattened out or declined. Dr. McNichols requested an explanation about the 140
percent debt requirement and what bond companies require in terms of reserves.
Minutes
Regular Council Meeting
May 12, 1992
Page 4
City Manager Garza responded that because the sales tax is elastic, it reflects what
is happening with the economy and investors would want some assurance that they are going
to get paid from year to year. He stated that some type of sizable reserve is needed and
more than likely it would be 100 percent of the next year's debt service payment. In
addition to that reserve, the investors would also want to see a margin of safety and that
could go from about 135 percent to 150 percent depending on the circumstances. Mr. Garza
stated that in this case, the usage of the funds of the excess forty percent in the second year
and subsequent years cannot be used in the sense of a cash flow.
Discussion ensued and the motion made by Council Member Slavik died for lack of
a second.
Mr. Abel Alonzo, 1701 Thames, spoke in support of the defense facility proposal.
Relative to Item 5, detoxification services agreement with Charter Hospital, Council
Member Slavik inquired why $31,200 is being appropriated in advance, and City Manager
Garza stated that the Council did not appropriate the funds when this item was previously
discussed. He indicated that they authorized the project and funding from this source but
did not submit an appropriate ordinance at that time. Mrs. Slavik asked if $31,200 is the
cap, and City Manager Garza responded in the affirmative. Council Member McNichols
explained that is an estimated number and if it exceeds that, the City will have to provide
additional funds because there will be more juveniles that require detoxification services.
City Manager Garza commented in regard to the agreement with Charter Hospital.
Council Member Moss inquired about the Law Enforcement Trust Fund, and City
Manager Garza replied that it is money confiscated from drug raids.
Mayor Pro Tem Longoria inquired about the time frame, and Police Chief Garrett
responded that the agreement became effective about thirty days ago.
Relative to Item 6, Heritage Park lease agreements, Council Member Slavik inquired
about the brochures regarding the historical homes, and Malcolm Matthews, Director of
Park and Recreation, stated that the brochures are old; they are being reprinted; and they
will be ready in about a month.
City Secretary Chapa polled the Council for their votes and the following items were
passed:
3. M92-116
Motion awarding a contract in the amount of $320,896 to UMM, Inc. to construct the
Center for Hispanic Arts facility.
The foregoing motion passed by the following vote: Rhodes, Longoria, Galindo,
McComb, McNichols, Moss and Slavik voting, "Aye'; Guerrero and Martin absent.
4. RESOLUTION NO. 021388
Minutes
Regular Council Meeting
May 12, 1992
Page 5
DIRECTING THE CORPUS CHRISTI AREA ECONOMIC DEVELOPMENT
CORPORATION TO PREPARE AND SUBMIT A PROPOSAL TO THE
DEPARTMENT OF DEFENSE TO LOCATE A FACILITY IN CORPUS
CHRISTI, AND EXPRESSING THE CITY COUNCIL'S INTENT TO CALL AN
ELECTION FOR VOTER CONSIDERATION OF A SALES TAX TO SUPPORT
SUCH A PROPOSAL.
The foregoing resolution passed by the following vote: Rhodes, Longoria, Galindo,
McComb, McNichols, Moss and Slavik voting, "Aye"; Guerrero and Martin absent.
5. ORDINANCE NO. 021389
APPROPRIATING $31,200 FROM THE LAW ENFORCEMENT TRUST FUND
FOR THE DETOXIFICATION SERVICES AGREEMENT WITH CHARTER
HOSPITAL; AND DECLARING AN EMERGENCY.
An emergency was declared and the foregoing ordinance passed by the following
vote: Rhodes, Longoria, Galindo, McComb, McNichols, Moss and Slavik voting,
"Aye"; Guerrero and Martin absent.
6a. ORDINANCE NO. 021390
AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT WITH
CZECH HERITAGE SOCIETY OF SOUTH TEXAS, FOR THE UTILIZATION
OF THE JALUFKA HOUSE LOCATED AT 1513 N. CHAPARRAL, LOTS 3, 4,
5, 9, AND 10, BLOCK 61, BEACH PORTION; RESCINDING ALL PRIOR
LEASES; AND PROVIDING FOR PUBLICATION.
The foregoing ordinance passed on third reading by the following vote: Rhodes,
Longoria, Galindo, McComb, McNichols, Moss and Slavik voting, "Aye"; Guerrero
and Martin absent.
6b. ORDINANCE NO. 021391
AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT WITH THE
NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED
PEOPLE - CORPUS CHRISTI H. BOYD HALL BRANCH, FOR THE
UTILIZATION OF THE LITTLES-MARTIN HOUSE, 1519 N. CHAPARRAL,
LOTS 11 & 12, BLOCK 70, BEACH PORTION; RESCINDING ALL PRIOR
LEASES; AND PROVIDING FOR PUBLICATION.
The foregoing ordinance passed on third reading by the following vote: Rhodes,
Longoria, Galindo, McComb, McNichols, Moss and Slavik voting, "Aye'; Guerrero
and Martin absent.
6c. ORDINANCE NO. 021392
Minutes
Regular Council Meeting
May 12, 1992
Page 6
AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT WITH THE
IRISH CULTURAL HOUSE, INC. FOR THE UTILIZATION OF THE
MCCAMPBELL HOUSE, 1501 N. CHAPARRAL, LOT 2, BLOCK 61, BEACH
PORTION; RESCINDING ALL PRIOR LEASES; AND PROVIDING FOR
PUBLICATION.
The foregoing ordinance passed on third reading by the following vote: Rhodes,
Longoria, Galindo, McComb, McNichols, Moss and Slavik voting, "Aye'; Guerrero
and Martin absent.
Mayor Rhodes called for consideration of Item 7, certificate of public convenience
and necessity American Cab and Shuttle Company.
City Manager Garza stated that the code requires that seven items be addressed in
reviewing an application for additional taxicab licenses. He reviewed some statistics and
stated that the City's position is to allow unrestricted competition among taxicab companies
whose decisions to expand are similar to other local businesses. Mr. Garza stated that staff's
recommendation is to allow the increase in cabs. He noted that presently there is a conflict
between the company that operates the limousine service at the airport and American Cab
and Shuttle Company, and Mayor Rhodes stated that is a separate issue.
Mayor Rhodes inquired if anything in the ordinance specifies that the Council cannot
grant someone more cabs if one cab company shows a lack of business, and City Attorney
Bray responded that there is not anything in the ordinance. He stated that it is the
Council's decision to determine the overall need for cabs in the community.
Mr. Noe Lopez, 3904 Ramsey, owner of Airport Shuttle, stated that the Council's
decision on this item will influence the operations of Airport Shuttle. He stated that
American Cab Company has six licensed taxis to operate but according to a survey taken,
seven or eight of their cabs were observed at the airport. Mr. Lopez stated that the airport
shuttle business is down 50 percent from the projected posted figures.
Responding to a question from Mayor Rhodes, George Hext, Aviation Director,
stated that the City has allowed individuals to make reservations for a particular company
and if the cab company notifies the City in advance, they can pick up. He stated that as
long as a cab company notifies the City in advance, they are allowed to pick up out of
sequence.
Council Member Galindo expressed the opinion that a goal of the Council is to make
sure that the City has clean, safe cabs.
Council Member McComb inquired if American Cab Company is operating more
than the permitted six cabs, and City Manager Garza stated that staff is not aware if they
are but will verify it. Mr. McComb expressed concern that they are in violation of their
permit.
Minutes
Regular Council Meeting
May 12, 1992
Page 7
Ms. Claudia McCraine, President of Padre Island Shuttle, Inc., dba American Cab
Co. stated that her company has licensed cabs in Port Aransas and are at the airport when
they pick up or drop off a Port Aransas person. She stated that she also has vehicles that
run in the City for RTA.
Council Member McComb expressed concern that they are contracting for cab service
with the RTA under licensed permitted cabs and use another vehicle, and Mrs. McCraine
stated that they can use the cabs as courtesy vehicles for the RTA contract. Council
Members McComb and Galindo requested the Legal Department to investigate this matter.
Ms. McCraine stated that if the cab which is licensed in Port Aransas has become
overloaded, she has brought the unit in to pick up an RTA customer, and Mr. McComb
expressed concern that they are operating without the right authority. City Manager Garza
stated that he will check with the RTA about their requirements in this regard.
City Secretary Chapa polled the Council for their vote and the following ordinance
failed to pass:
7. Failed to Pass
AUTHORIZING THE ISSUANCE OF A CERTIFICATE OF CONVENIENCE
AND NECESSITY TO CLAUDIA MCCRAINE, PRESIDENT, PADRE ISLAND
SHUTTLE, INC., D/B/A/ AMERICAN CAB AND SHUTTLE COMPANY, FOR
THE OPERATION OF A MAXIMUM OF TWELVE (12) TAXICABS WITHIN
THE CITY OF CORPUS CHRISTI FOR A FIVE (5) YEAR PERIOD
EFFECTIVE UPON FINAL READING OF ORDINANCE; SUBJECT TO THE
APPLICANTS COMPLIANCE WITH ALL TERMS AND CONDITIONS
ESTABLISHED IN CHAPTER 57, ARTICLE II, TAXICABS, CODE OF
ORDINANCES; AND PROVIDING FOR PUBLICATION.
The foregoing ordinance failed to pass on first reading by the following vote: Rhodes
and Slavik voting, "Aye"; Longoria, Galindo, McComb, McNichols and Moss voting,
"No"; Guerrero and Martin absent.
i# i• k Y• i t• Si Y s
Mayor Rhodes called for consideration of Item 8, new golf course development, and
City Manager Garza provided background information. He noted that items to be
considered would be the concept of the tourist industrial district which would involve some
deannexation of City lands and the concept of privatizing the management of the City's
existing golf courses. Mr. Garza indicated that because it is such a significant proposal, he
would like staff to make the presentation, entertain questions and present the proposal next
week.
Malcolm Matthews, Director of Park and Recreation, provided an overview of a
proposal for a lease agreement with the Phoenix Group, Inc. to finance, design, construct
and operate a new 18 -hole public golf course and to finalize details for approval to acquire
the site. He discussed the intent of the project and reviewed the history of the property.
Minutes
Regular Council Meeting
May 12, 1992
Page 8
He indicated that last June, the Council authorized staff to proceed with a Request for
Proposals for the development of a new public golf course and he elaborated on the
Requests for Proposals. Mr. Matthews stated that an evaluation team reviewed the
proposals and selected the proposal submitted by the Phoenix Group, Inc., which provides
for the financing, design, construction and management of a new championship 18 -hole
public golf course on the I-37 site and requires their operation of the existing two public
golf courses. Mr. Matthews discussed the major advantages of the Phoenix Group proposal
and stated that the group has agreed that upon signing of the lease agreement, they will
execute a performance bond in the amount of the project to insure the financial success of
the construction of the new golf course. He stated that part of the proposed 30 -year lease
agreement would allow the firm to increase green fees between 3.5 percent and 5.5 percent
annually to pay for golf course improvements.
Mr. Matthews continued by stating that the Phoenix Group needs some sort of
commitment from the City and has asked that the Council give authorization for staff to
finalize negotiations so that a formal decision can be made as to whether or not to enter
into a long-term contract.
Discussion ensued as a series of specific questions dealing with industrial districts and
greens fees were asked by several Council Members, and Mr. Matthews responded to the
questions. The Council Members endorsed the project but some members expressed
concern about the greens fees.
Council Member McNichols asked that if the City has the company take over the two
courses that are presently in operation and they finance and operate the new one, how will
the City pay off the negative fund balance. Mr. Matthews stated that staff has identified a
negative fund balance and the company indicated that they would take that on over a period
of years.
Council Member McComb suggested that the golf course portion be a part of the
City of Corpus Christi for the sales tax revenue, and Mr. Matthews stated that staff has
informed the Phoenix Group that the improvements are subject to tax. Mr. McComb
expressed the opinion that the greens fees are too low.
Mr. Ed Goldsmith, President of the Corpus Christi Golf Association, spoke in
opposition to the privatization of the City's golf courses. He suggested that the City allow
the association to operate the golf courses.
The following individuals spoke in opposition to the privatization of the City's golf
courses and the high green fees: Mr. Bob Suggs, 4910 Shadowbend; Mr. Orval Ponder,
President of the Greens Committee, 609 Texas; Mr. Herbert Raymond, 505 Sorell; Mr.
Harold Hoppenrath, 338 Clifford; Mr. Rudy Valenzuela, 5713 Crestvilla; and Mr. J. W.
Eator, 5502 Holly Road.
Mr. J. E. O'Brien, 4130 Pompano, suggested that the City explore the offer by the
Golf Association to take over the golf courses.
Minutes
Regular Council Meeting
May 12, 1992
Page 9
Ms. Betty Geradine, 4848 South Alamada, expressed the opinion that the course
should be in the City limits. She indicated that the Phoenix Company does not yet have a
track record as yet.
Mr. Larry Baker, 11559 Leopard, speaking on behalf of the Northwest Business
Association and Northwest Area Council, read a prepared statement in support of a golf
course in the northwest area.
Ms. Jeannete Hallmark, Northwest Business Association, spoke in support of the golf
course and the proposed RV resort project.
City Manager Garza advised that the City's golf courses are barely breaking even.
He stated that the City has done everything to run the courses as cheaply as possible but
they are not making money.
Mayor Rhodes requested that the Council packet include a one-page financial picture
addressing whether money is used to subsidize Ocean Drive parks, and City Manager Garza
assured the Mayor that there is no money used to subsidize anything. Mrs. Rhodes asked
if fee control could be built into the proposal. She also requested information on how the
City's golf course fees compare to other cities.
Council Member Slavik stated that there must be a way in which the City could keep
some kind of general control over the rates. She expressed concern that they would raise
the rates, pointing out that it is a municipal course. She inquired how other cities and other
Councils keep control of the rates, and Mr. Matthews identified cities that have begun this
process or have been in privatization. Mr. Matthews stated that the major reason that the
golf companies want some up -front guarantees on a percentage is for financing only. He
pointed out that the City has increased the green fees more than ten percent in the last
three years and is considering a fee increase this year.
Council Member Galindo requested figures pertaining to alternatives to the proposal.
Council Member McNichols referred to the Golf Fund and requested financial
information for the fiscal year in regards to overall revenue, minus the overall expenses,
minus the debt service. He stated that he would like to know to what extent the City is
subsidizing the golf courses.
8. Postponed
Minutes
Regular Council Meeting
May 12, 1992
Page 10
Mayor Rhodes called for the City Manager's report, and City Manager Garza advised
that the Bay Area Quality Council has presented $2,000 to the Corpus Christi Public Library
for the purchase of a quality book collection.
Mayor Rhodes referred to her recent meeting in Houston and stated that the City
was requested to participate in the studies necessary to do the water interbasin transfers.
She presented a reference map that shows which sources in Texas have too much water and
which do not have enough.
James Dodson, Regional Water Director, talked about his new responsibilities and
commented in regard to a water supply strategy for the City.
Mrs. Rhodes passed out information regarding a MUSCLE legislation program,
(Mayor's United for Safety & Crime Legislative Enforcement) and advised that she is
placing this item on next week's agenda.
Mrs. Rhodes presented the Council with a USDA background report on Africanized
Honey Bees.
Mrs. Rhodes informed the Council that there is a college in Cambridge, England
which is the Corpus Christi College. She advised that once a year they fly the Corpus
Christi Flag and celebrate Corpus Christi Day.
Mayor Rhodes referred to material from the City Attorney on the PUC proposal for
retail wheeling and requested that this item placed on next week's agenda. She also
requested that the City Attorney provide a recommendation in this regard.
Mrs. Rhodes presented material to the Council Members who will be attending the
Association of Mayors and Council Members and Commissioners in El Paso.
Mayor Rhodes commented about a Monterrey newspaper article in regard to the
Corpus Christi dignitaries' recent trip to Monterrey.
Mayor Rhodes announced that the City's Finance Department will soon be receiving
a certificate of achievement for excellence plaque.
Mayor Rhodes called for Council liaison reports.
Council Member Slavik referred to the amended Standard and Poors rate sheet and
expressed concern about a sentence that states, "Management is seeking Council's approval
to raise the 68% tax rate cap by ten cents as a means of generating additional property tax
revenue." Mayor Rhodes advised that during the recent bond trip to New York, she asked
the bond investors as an alternative how they would feel if the tax cap were increased ten
percent because it is not possible to have the tax cap just removed, and they replied that it
would make them feel more comfortable.
Minutes
Regular Council Meeting
May 12, 1992
Page 11
Mrs. Slavik informed the public that the agenda for the Council Meeting is rolled on
Channel 20 on Monday evening at 6:45 p.m. and 9:45 p.m.
Council Member McComb commended the City's efforts in the Minority Business
Enterprise participation for their contracts.
Mr. McComb stated that the City should publicize the pump -out facility on the
intercoastal that is available to the public, Coastway Bait and Tackle.
Mr. McComb requested that a brief report be given concerning the Nueces County
Courthouse.
Mayor Rhodes called for petitions from the audience on matters not scheduled on
the agenda.
Mr. Melvin Kronk, 5805 Academy, spoke in opposition to the proposed amendment,
Animal Control, regarding keeping of any livestock or fowl.
Mr. Philip Rosenstein, 949 Bobalo, made comments about a senior citizen center that
is going to be built on the north side.
Mr. Barry Pillinger, 6606 Clarion Drive, Chairman of the Transportation Advisory
Committee, read a prepared statement in regard to remarks made by Council Member Leo
Guerrero at last week's Council Meeting relative to the committee. He stated that the
committee feels a public apology is in order.
Mr. James Ware, 401 Louisiana, invited the Council to the 9th Annual International
AIDS Candlelite Memorial which will be held on Sunday, May 16th at the Water Garden.
Mr. Harold Hoppenrath, 338 Clifford, read aloud an article from the newspaper in
regard to the first amendment to the Constitution and religion from public schools and
public activities.
Mr. Leon Perez, 904 Buford, spoke in regard to newspaper editorials about the recent
riots in Los Angeles.
Mr. Tony D'Amico, 145 Chiltipin, made comments pertaining to Item 7, additional
taxicab permits at the airport.
There being no further business to come before the Council, Mayor Rhodes declared
the Council Meeting adjourned at 5:10 p.m. on May 12, 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 May 12, 1992, which were
approved by the City Council on May 19, 1992.
WITNESSETH MY HAND AND SEAL, this the 21st day of July, 1992.
Armando Chapa
City Secretary
SEAL