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HomeMy WebLinkAboutMinutes City Council - 06/02/1992MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting June 2, 1992 2 p.m. PRESENT Mayor Mary Rhodes Mayor Pro Tem Betty Jean Longoria Council Members: Cezar Galindo Leo Guerrero Edward Martin Joe McComb Dr. David McNichols Clif Moss Mary Pat Slavik City Manager Juan Garza Assistant City Attorney Ruben Perez City Secretary Armando Chapa Mayor Rhodes called the meeting to order in the Council Chamber of City Hall. The invocation was delivered by Mr. Tony Statton, Representative of the Quaker Faith, following which the Pledge of Allegiance to the Flag of the United States was led by Council Member McComb. 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 26, 1992, and there being no corrections, she proclaimed them approved as presented. Ms. Nancy Wehrung and Ms. Carol Sutherland, Motorola Communications and Electronics, presented McGruff, the crime prevention dog, to Police Chief Henry Garrett, Mayor Rhodes, and City Council Members. Ms. Sutherland discussed the associated programs on crime prevention in our schools and community and stated that these programs will enable young Americans to work together for a drug free and crime free community. She further commented on MUSCLE and stated that this program is supported by Corpus Christi. Mayor Rhodes expressed the City's appreciation for the receipt of this gift. Mayor Rhodes recognized a Boy Scout Troop, No. 162, from St. Patricks. MICROFU.MED Minutes Regular Council Meeting June 2, 1992 Page 2 Dr. Kate Haltom, Chairman of the Human Relations Commission, distributed information on behalf of the Corpus Christi Human Relations Commission, and discussed the Commission's objectives. Dr. Haltom commented on the April 24, 1992, conference which assisted various groups with the new American Disability Act. Dr. Haltam also stated the Human Relations Commission office can be reached through City Hall. Mr. Mike Griffiths, Director of the Nueces County Juvenile Department, and Ms. Debbie Owen, Program Specialist for the Educational Service Center, extended an invitation to the Council and public to attend the Educational Service Center Drug Free Schools Program workshop on June 6, 1992, at Del Mar College auditorium. Ms. Owen discussed the program's goals for the community regarding youth violence. City Manager Garza gave a presentation of the FY 1992-93 Proposed Budget and briefly explained the contents of the Recommended Annual Operating Budget FY 1992-93 book recently distributed to Council Members and staff. He also pointed out information regarding revenues and expenditures of various funds and commented briefly on the General Fund section which details each departments activities through past and recent expenditure classifications. Council Member Moss inquired if the amount of $254,653,065 on the Budget Summary included interchange funds, and City Manager Garza replied in the affirmative. Mr. Moss requested this information be specified since it is confusing and the actual budget is smaller. Council Member Galindo arrived. Council Members Martin and McNichols requested Mr. Garza to indicate on the overall Budget Summary Sheet the prior adopted budget amounts approved in order to make a legitimate comparison. City Manager Garza stated the Capital Improvement Program would be presented as a separate budget at a later date. Mr. Garza also commented on the factors which have affected the City's present revenues negatively. These factors include mild weather which has contributed to the decreased usage of electricity, water, and wastewater, stabilized sales tax revenues, a flat property tax base, and low interest rates which have decreased the City's investment interest earnings. Mr. Garza next commented on his proposed solutions. These solutions include the complete elimination of specific City positions and the transferring of some full time personnel to seasonal employment, consolidation of certain departments, a one -and -one garbage and recycling collection service, a six percent increase to Water, Wastewater, and Gas rates effective July 31, 1992, and a five cent increase to property taxes comprised of three cents to debt service and two cents to operations and maintenance. Mr. Garza additionally referred to the industrial district contracts and stated he is negotiating with the industrial districts regarding an increase of approximately $1.5 million, and will inform City Minutes Regular Council Meeting June 2, 1992 Page 3 Council of the results. City Manager Garza also commented that other options the might be considered are the privatization of the Gas/Utility Department, Airport, and in house construction, the removal of discounts for early payment of property taxes, and the senior citizen tax rate exemption, which results in a tax base loss of approximately $315 million to the City. Further, he recommended the funding of Police Department overtime and the replacement of police cars through the City's Drug Account. Council Member Guerrero inquired if the proposed elimination of positions have been effected, and City Manager Garza stated that employees have been notified of the pending layoff. He further stated that Human Resources and the Texas Employment Commission have been requested to work closely with these employees to assure placement services. Council Members Moss and McComb expressed concerns regarding the elimination of employees and encouraged the placement of these employees. Mr. McComb stated that he feels uncomfortable with the elimination of some employees while others are receiving pay increases, and that the four year contract with Police under the collective bargaining must be reinvestigated. City Manager Garza stated that, as vacancies occur naturally, the terminated employees that are qualified would have first choice of these vacancies. He further stated that the terminated employees would have the right to some City benefits one year after termination. Council Member Galindo inquired if the possibility of freezing salaries and salary cuts have been taken into consideration, and Mr. Garza stated these options may be explored in the future. Mr. Garza also commented on reducing the work week to 37.5 hours, which would reduce salaries. Council Member Martin requested City Manager Garza to present a list of options for decreasing expenditures, which Mayor Rhodes confirmed would be necessary to make additions and deletions to the budget intelligently. Further, Council Member Martin expressed his concerns regarding the one-on-one garbage pickup stating that many people can handle once a week garbage pickup because they have garbage disposals and trash compactors, but many cannot. Council Member McComb referred to the budget's deficit of $5 million, and City Manager Garza affirmed the amount. City Manager Garza stated that the budget is best reviewed at the end of the year because most revenues are received during this period. Mr. McComb inquired if there is a net gain when replacing old garbage trucks with expensive new trucks, and Mr. Garza stated this needs to be investigated. Mr. McComb further commented on the Park and Recreation rate structure and stated that the fees for adults show an increase but youth fees remain the same, and City Manager Garza stated that the City wants to encourage youth activities. Council Member McComb inquired about the alarm fee increase, and City Manager Garza stated this applies to residences; further that the fees regarding commercial businesses was executed through an ordinance in 1983. Mr. McComb stated that in prior years insurance had not be detailed, and Mr. Garza stated that he hopes this information Minutes Regular Council Meeting June 2, 1992 Page 4 will enable the City to reduce City claims through implementing safety regulations by determining which departments need assistance. Council Member McNichols expressed his concern regarding the proposed six percent utility rate and the five cent tax rate increases. A discussion developed and it was determined that the Utility Rate Commission previously set up was dissolved and at this point the City Council relied upon City staff for further information. City Manager Garza stated that the decision regarding the proposed increase was temporarily delayed as a consequence. Responding to Mr. McNichols' question regarding the elimination of the Deputy City Manager position, City Manager Garza stated that department heads and other levels of employment would be relied upon more. Further, City Manager Garza stated that when the tax base goes down, interest rates increase, but not in the City's case because of the cap. Additionally, it was determined that the last time the City raised taxes was in 1989. Council Member Guerrero expressed his concerns regarding taxes and suggested that taxes should have been raised in smaller increments on a more consistent basis. City Manager Garza further stated that he wished the Council could have been convinced to raise the utility/gas rates and increase property taxes last year. He also stated the City has been living off the City's reserves and economic growth, rather than increasing taxes. Council Member Galindo suggested addressing the one-half cent sales tax regarding Regional Transit Authority support of City services. City Manager Garza stated this would be investigated and that funds have been approved in the past for Emergency Medical Services, and perhaps the RTA would further support a City street maintenance program since the buses are damaging the streets. Council Member Longoria requested information on property taxes concerning early payment exemptions and homesteads. Council Member McComb inquired if in the event a budget is not adopted by August 1, would an extension of this year's budget be in effect on a month-to-month basis, and City Manager Garza replied in the affirmative. Council Member Slavik inquired why there is a $5 million dollar difference in the General Fund for 1990 and 1992 budgets; and City Manager Garza stated he would investigate this increase, but he feels that energy costs, salaries and wages, and insurance costs are the major reasons. The City Manager was asked to meet with the Mayor to determine if revisions needed to be made to the proposed calendar for proceeding with the budget review. Mayor Rhodes referred to the Board & Committee appointments and the following appointees were made by the Council. (M92-126). Citizens Advisory Health Board Dr. Robert Frey Minutes Regular Council Meeting June 2, 1992 Page 5 Food Services Advisory Committee Edward Dominguez, Reappointed Melody Cooper, Reappointed Human Relations Commission Sandra L. Green, Reappointed Clyde E. Bourke, Jr., Reappointed Mousunri Shaw, Reappointed Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 3 through 9, and Council Members and the audience requested that Items 3 and 4 be withheld for discussion. City Secretary Chapa polled the Council for their votes and the following were passed: 5. ORDINANCE NO. 021405 Ordinance closing the public hearing held on May 26, 1992, and adopting the assessment roll indicating assessments of $48,024.88 on 20 items for improvements in connection with 15th Street from Ayers to So. Staples Streets. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, McNichols, Moss, Slavik, Galindo, and Longoria voting "Aye"; Guerrero, Martin, and McComb absent. 6. M92-128 Motion awarding a contract in the amount of $303,947.75 to Garrett & Associates for the construction of 15th Street from Ayers to So. Staples as part of the street improvements in the area adjacent to Wynn Seale Middle School. The foregoing motion passed by the following vote: Rhodes, McNichols, Moss, Slavik, Galindo, and Longoria voting "Aye"; Guerrero, Martin, and McComb absent. 7. ORDINANCE NO. 021406 Ordinance closing and abandoning a 1 -foot wide by 74.44 -foot long portion of a 7 - foot wide utility easement along the north property line of Lot 7, Block 19, The Lakes Unit 2 Subdivision, subject to replatting the property within 180 days and meeting other specified requirements. Minutes Regular Council Meeting June 2, 1992 Page 6 An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, McNichols, Moss, Slavik, Galindo, and Longoria voting "Aye"; Guerrero, Martin, and McComb absent. 8. FIRST READING Authorizing the City Manager or his designee to execute a ten-year lease agreement with Brooks Chapel Early Childhood Development Center, Inc., for property located at 1517 Winnebago Street. The foregoing ordinance passed on first reading by the following vote: Rhodes, McNichols, Moss, Slavik, Galindo, and Longoria voting "Aye"; Guerrero, Martin, and McComb absent. 9. FIRST READING Authorizing the City Manager or his designee to execute a ten-year lease agreement with the Center for Hispanic Arts for property described as Lot 2, Lawnview Annex, Nueces County, Texas according to the Map or Plat recorded in Volume 31, Page 14 of the Map Records of Nueces County, Texas, save and except a 50 x 125 foot portion of said Lot 2 situated on the South property line adjacent to Lots 5, 6, 7, 8 and 9, Block 4, Luter Addition on Lots 1, 2 and 3, Block 5, Lawnview Addition according to the Map or Plat recorded in Volume A, Page 13 of the Map Records of Nueces County, Texas (18th and Agnes Streets). The foregoing ordinance passed on first reading by the following vote: Rhodes, McNichols, Moss, Slavik, Galindo, and Longoria voting "Aye"; Guerrero, Martin, and McComb absent. Mayor Rhodes opened the discussion on Item 3, motion concurring in the award of contracts for the U.S.S. Lexington. Pursuant to Item 3, Mr. Harold Hoppenwrath, 338 Clifford, requested information on the funding of the Lady Lex Museum on the Bay projects, and City Manager Garza stated that these funds were obtained from donations and $3 million from Certificates of Obligation. Discussion developed and Council Member McNichols stated that the Hotel/Motel tax is pledged to support these projects. Pursuant to Item 4, ordinance equalizing the single member district, Mr. Brad Ferris, expressed his concerns regarding the district lines and stated he understands that the redrawing of these lines is to facilitate equal representation. He felt that his concerns also applied to other political bodies, but he does not understand why the lines are gerrymandered. He stated he feels that a system of geographic proximity could be agreed upon and maps drawn more uniformly and consistently. Mayor Rhodes stated the City was under orders of the Justice Department to have a certain formula and procedures for the addition and deletion of precincts in order to comply with specified percentages. Minutes Regular Council Meeting June 2, 1992 Page 7 3. M92-127 Motion concurring in the award of contracts for: 1) construction of the approachway structure for the USS Lexington to W.T. Young Construction Company in the amount of $1,046,071; and 2) backfill dredging around the ship to Mike Hooks, Inc., Lake Charles, LA, in the amount of $442,500. The foregoing motion passed by the following vote: Rhodes, McComb, McNichols, Moss, Slavik, Galindo, Guerrero, Longoria, and Martin voting "Aye." 4. ORDINANCE NO. 021404 Ordinance equalizing the single member districts for the election of city council members in accordance with the City Charter; providing for submission of the reapportioned districts for pre -clearance from the U.S. Department of Justice. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, McComb, McNichols, Moss, Slavik, Galindo, Guerrero, Longoria, and Martin voting "Aye." Mayor Rhodes called for consideration from the Regular Agenda. Mayor Rhodes opened the discussion on Item 10. Mr. Bill Hennings, Director of Public Works/Utilities, gave a presentation on the Utility Capital Improvement projects. His presentation recommended a main plan and featured alternative plans. The main plan included the Whitecap Expansion, Diversion of Horne Road Lift Station, Staples Street Trunk Rehabilitation, Utility Relocations and CIP Contingency Reserve, for a total of $9,141,554. He further discussed each project in detail and described the reasons necessary for such improvements. He discussed the source of the funds in detail and the project commitments. Mr. Hennings stated that the Texas Water Commission will impose sanctions if the Whitecap Expansion is not prosecuted diligently; therefore, full funding is requested on this project at this time. Mr. Hennings stated the Utility Relocations are also important because the crosstown project will be started in approximately October, 1992. Council Member Martin expressed his concerns regarding the expense involved in the Whitecap Expansion, and Mr. Carl Crull, Director of Engineering, explained the costs involved. Responding to Mr. Martin's questions, regarding the recommended length of time this expansion would adequately serve the area, Mr. Crull stated four to six years before the next expansion would be needed. Mr. Martin stated he would recommend a design for the Whitecap Expansion which would last at least five to ten years, and further recommended the completion of other projects including the design on the Southside Plant. Minutes Regular Council Meeting June 2, 1992 Page 8 Council Member McNichols stressed the importance of the Whitecap Expansion and the Diversion of Horne Road Lift Station to relieve the Oso Plant. He also stated that the Southside Plant design and the Oso Odor Control are important. Responding to Council Member Slavik's questions, Mr. Hennings stated that all alternative projects are important, but the Oso Odor Control, Master Plan Study, and the Sludge Management Plan are critical. Mrs. Slavik inquired if the Horne Road Diversion would help the Brawner Parkway problem, and Mr. Hennings replied in the affirmative. Council Member Martin inquired whether or not these funds could be reallocated without any problems, and City Manager Garza replied in the affirmative. A question and answer period developed concerning the reallocation of these funds and Council Member McNichols made a motion for an alternative plan which reduces the fund for Whitecap Expansion to $5.2 million, and includes Diversion of Horne Road Lift Station for $1,200,000, Staples Street Trunk Main for $500,000, Utility Relocations for 1,175,000, CIP Contingency Reserve for $66,554, Westside Plant Expansion for $500,000, Oso Odor Control for $500,000, and leaving approximately $500,000 more needed to complete the Whitecap Expansion project. Mayor Rhodes called for a hand vote on the motion to amend which was seconded by Mr. McComb, and the motion passed. Mr. Martin voted against the motion and Mr. Guerrero was absent at the time the vote was taken. Mr. Hennings stated that the three critical projects in the water portion of this recommendation are the utility relocations on Crosstown Expressway, Northwest area water system improvements, and repair work to the water treatment plant, which he is requesting authorization at this time. The sources of funds are $200,000 for the Northwest area water system improvements, $1,700,000 in the operating budget "pay-as-you-go" capital improvement program, $935,000 in interest earnings in the capital improvement fund, $4,000 surplus from completed projects, and a set aside contingency fee of $9,000. Further, funds not included in this proposal are the reserve funds for the water reservoirs, which includes the Wesley Seale Dam Maintenance reserve, Choke Canyon maintenance reserve, and escrow account for future Bureau of Reclamation payments. Mr. Frank Kolda, 6938 Aswan, stated that Brawner Parkway is an emergency in his opinion, commented on the study done by Freese & Nichols, and requested a plan be implemented to avoid a polluted bay. Mrs. Miriam Wagenshein, 6810 Sahara Drive, stated that she supported the 1986 bond election and agreed with Council Member Martin regarding the new wastewater project. She suggested building the Southside Plant in increments and selling the Gas Department to obtain funding. Mr. Barry W. Pillinger, 6606 Clarion Drive, commented on the Oso Odor Control project and stated the new Southside Plant would relieve problems at the Oso Plant. Additionally, he felt that the funds allocated for the Greenwood sliplining should be used Minutes Regular Council Meeting June 2, 1992 Page 9 for the Horne Road/Houston Trunk sliplining; and that the Freese & Nichols report covered 80 percent of the City, and correctly called for a modification to the Oso Plant and not an expansion and the construction of the Southside Plant. He stated he feels that the delays occurring are costing the City money. Council Member Galindo requested to know the amount left over from the 1986 voter approved bond program, and City Manager Garza stated $1.2 million and that $16 million worth of bonds remain to be sold. Council Member Slavik inquired whether the Freese & Nichols report included a recommendation to do the Southside Plant in stages, and Mr. Pillinger affirmed and discussed other options included in the report. Mr. Pillinger further suggested reexamining this report. Mayor Rhodes called for a voice vote on the motion to amend which was seconded by Mr. McComb, and the motion passed. Mr. Martin voted against the motion and Mr. Guerrero was absent at the time the vote was taken. City Secretary Chapa polled the Council for their votes and the following ordinance as amended passed by the following vote: 10. ORDINANCE NO. 021407 Ordinance amending Ordinance No. 021279 by adding approved Utility Capital Improvement projects for Fiscal Year 1991-92; approving the transfer of funds from the Trust Fund to the Capital Improvement Fund; and appropriating $7,341,909. An emergency was declared and the foregoing amended ordinance passed by the following vote: Rhodes, McComb, McNichols, Moss, Slavik, Galindo, Longoria, and Martin voting "Aye"; Guerrero absent. Mayor Rhodes opened the discussion on Item 11, motion approving Amendment No. 1 to the contract for engineering services with RDC Shearer, Inc.; Item 12, ordinance authorizing transfer and appropriation of funds from the Wesley Seale Dam Maintenance Fund to the Capital Improvements Fund; and Item 13, motion approving Amendment No. 1 to the contract for engineering services with Freese & Nichols, Inc. Discussion ensued as a series of specific questions were raised by Council Members, and Mr. Hennings responded to the questions. Council Member Martin inquired regarding the estimated amount of funds available for Wesley Seale Dam, and Mr. Hennings stated there is a balance of $3.9 million left from the original $4.9 million. Mr. Martin further inquired if it is recommended that we reinvestigate the method of payment of these projects with a three or four year revenue bond and pledge this money in order to continue earning interest; and Mr. Garza stated he feels that this cash should be invested to provide the northside with needed services at this time. In order to reduce the cost of running utilities, the City must reduce the operating Minutes Regular Council Meeting June 2, 1992 Page 10 expense. He further stated that if the City financed the project, interest expense would be incurred as well as the depreciation. City Secretary Chapa polled the Council for votes and the following items passed. 11. M92-129 Motion approving Amendment No. 1 to the Contract for Engineering Services with RDC Shearer, Inc., in the amount of $425,000 for Design and Construction Phase services to expand the Whitecap Wastewater Treatment Plant from 0.8 MGD to 2.5 MGD. The foregoing motion passed by the following vote: Rhodes, McComb, McNichols, Moss, Slavik, Galindo, Guerrero, Longoria, and Martin voting "Aye"; Guerrero absent. 12. ORDINANCE NO. 021408 Ordinance authorizing the transfer Maintenance Fund into the Capital amount from the Water Bond Fund. An emergency was declared and the vote: Rhodes, McComb, McNichols, voting "Aye"; Guerrero absent. 13. M92-130 of $219,000 from the Wesley Seale Dam Improvements Fund and appropriating said foregoing ordinance passed by the following Moss, Slavik, Galindo, Longoria, and Martin Motion approving Amendment No. 1 to the Contract for Engineering Services with Freese & Nichols, Inc. in the amount of $219,000 for Design Phase services to rehabilitate the Wesley Seale Dam Spillway Gates. The foregoing motion passed by the following vote: Rhodes, McComb, McNichols, Moss, Slavik, Galindo, Longoria, and Martin voting "Aye"; Guerrero absent. Mayor Rhodes opened the discussion on Items 14a and 14b. 14a. M92-131 Motion to reconsider Motion No. M92-124 regarding award of bank depository. The foregoing motion passed by the following vote: Rhodes, McComb, McNichols, Moss, Slavik, Galindo, Longoria, and Martin voting "Aye;" Guerrero absent. Pertaining to Item 14b, City Manager Garza explained that this motion is being reintroduced to the Council from the May 26, 1992 council meeting. Minutes Regular Council Meeting June 2, 1992 Page 11 Rosie Vela, Director of Finance, explained that NationsBank's bid was misinterpreted because the bank did not fill out the application properly regarding the collateral. She further stated that the City expects to pay for collateral and NationsBank left this amount blank, which caused this misinterpretation. She further explained the three factors involved in awarding a bid which are price, completeness of application, and proven ability to service the account. Council Member Galindo inquired if the City would have to pay the cost of transfer, and Mrs. Vela stated that all banking supplies have been depleted and the only cost involved in changing banks would be the City's staff time. Council Member Martin asked if City employees would be charged a fee for cashing checks, and City Manager Garza stated that NationsBank has advised there will not be a fee for this particular item. City Manager Garza stated the award to NationsBank would be in the best interest of the City. Mayor Rhodes made a motion to award the depository service agreement to NationsBank to provide the handling of municipal funds for the City of Corpus Christi for a three year term, which was seconded by Mr. Moss. 14b. M92-132 Subject to approval of Item No. 14.a. motion awarding a depository services agreement to NationsBank for a three-year term beginning June 8, 1992 through June 8, 1995. This agreement will provide depository services for the handling of municipal funds for the City of Corpus Christi. The foregoing motion passed by the following vote: Rhodes, McComb, McNichols, Moss, Slavik, Galindo, Guerrero, Longoria, and Martin voting "Aye;" Guerrero absent. Mayor Rhodes called for the City Manager's Report, and Mr. Garza stated the proposed golf course land has been recently partially flooded. Mr. Garza also stated that he entered into a use privilege agreement with a movie producing firm for the use of the old Police Building. Mayor Rhodes recessed the Council Meeting for a closed meeting pursuant to Article 6252-17, V.A.C.S., Subsections 2(e) and (f), regarding acquisition of new golf course; and Subsection 2(e), regarding Reinvestment Zone Tax collections. Mayor Rhodes reconvened the Council Meeting. Minutes Regular Council Meeting June 2, 1992 Page 12 Mayor Rhodes called for Council concerns and reports. Mayor Rhodes stated that it has been brought to her attention that information requested during a Council meeting is delivered to the requestee and the public does not have an opportunity to review. She requested suggestions on correcting this matter. Council Member Martin and Mayor Rhodes commented on dead animal pick up and reaction to street cave-ins after regular business hours and on weekends and requested these duties be performed by any City employee to guarantee promptness. Mr. Garza stated he would look into this matter. Mayor Rhodes called for petitions from the audience. Mr. Ron Hudson, 3556 Austin, commented on the improper posting of notices by governmental bodies in the City of Corpus Christi referring to related law; and commented on the Religious Access Users Group. Mr. Harold Hoppenwrath, 338 Clifford, stated the right to prayer is covered under the First Amendment of the Constitution of America. There being no further business to come before the Council, Mayor Rhodes declared the Council Meeting adjourned at 6:50 p.m. on June 2, 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 June 2, 1992, which were approved by the City Council on June 9, 1992. WITNESSETH MY HAND AND SEAL, this the 21st day of July, 1992. Armando Chapa City Secretary SEAL