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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