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HomeMy WebLinkAboutMinutes City Council - 05/11/1993I HEREBY CERTIFY that the foregoing is a true and correct copy of the Minutes of the RegularCouncil Meeting of the City of Corpus Christi of May 11, 1993, which were approved by the City Council on May 18, 1993. WITNESSETH MY HAND AND SEAL, this the 19th day of May, 1993. SEAL Armando Chapa City Secretary MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting May 11, 1993 2 p.m. PRESENT Mayor Mary Rhodes Mayor Pro Tem Betty Jean Longoria Council Members: Jack Best Melody Cooper Cezar Galindo Dr. David McNichols Edward Martin Clif Moss David Noyola 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 George Dawson, Administrator and Executive Chaplain for the Seaman's Center, following which the Pledge of Allegiance to the Flag of the United States was led by the Headstart Program Graduates present at the day's meeting. City Secretary Chapa performed a roll check 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 4, 1993, and there being no corrections, she proclaimed them approved as presented. * * * * * * * * * * * * * Mayor Rhodes deviated from the standard schedule of the regular council meetings, and called for considerations from the Regular Agenda. Mayor Rhodes announced the discussion on Items la, lb, lc, and ld, consideration of the sale of the Gas System. Mr. Bill Hennings, Group Manager, Public Works/Utilities, reviewed the charts and documents previously provided to the Council concerning the sale of the Gas System. He Minutes Regular Co .;il Meeting May 11, 1993 Page 2 discussed Southern Union Gas Company's (SU) proposed rates, including a five year rate projection and total bill comparisons (City and SU), proposed contract of sale, franchise ordinance, tariff, and the use of the sale's proceeds. Council Member Best inquired about the approximate 35 percent increase in gas rates during the first three years of SU's proposal, and Mr. Hennings confirmed. Responding to Council Member McNichols, Mr. Hennings explained that the City's projected monthly cost of service amounts included inflationary costs only, and reviewed the amounts assuming a six percent rate increase. Dr. McNichols pointed out that the cost difference of the City's projections compared to SU's projections was relatively small when assuming the six percent rate increase. Council Member Martin inquired whether the six percent increases would be necessary each year, and City Manager Garza replied in the affirmative when the water/wastewater capital improvement needs were considered. Responding further, Mr. Garza stated that the six percent rate cap in the City Charter pertained to the cost of service. Next, Mr. Martin inquired whether the Charter required that the cost of gas be passed through to the consumer, and Mr. Garza stated that he would examine this aspect. Responding further, City Manager Garza stated that he would recommend a full rollback on the cost of gas. Mayor Pro Tem Longoria inquired about the use of the proceeds from the sale, and Mr. Hennings commented that the proceeds would be utilized for further development of water and wastewater resources. Council Member Moss commented that the proposed ballot Language in the agenda material stated that the proceeds were to be used "exclusively" for the development of water and wastewater resources. He further commented that the word "exclusively" was not in the contract. City Attorney Bray stated that the use of the proceeds was intended to be used "exclusively" for the development of water and wastewater resources. Mr. Hennings also commented that the language on the ballot could be revised. Responding to Mayor Pro Tem Longoria, Mr. Hennings discussed SU's proposal concerning the meter reading and billing, and discussed future plans by SU to perform the activities after the initial three year period. Council Member Cooper inquired about the proposed amount of gas to be provided to City facilities at no charge, and Mr. Hennings commented that the proposed amount was based upon the amount of gas used by the current City facilities during an average winter. Responding further, Mr. Hennings discussed the funds expended by the City to date in relationship to the proposed reimbursement funds by SU for the costs of the sale. Council Member Best inquired about the consultant's opinion concerning the sale. Mr. Hennings replied that the consultant determined the value of the system, prepared the Request for Proposals, evaluated the proposals received, and assisted in the final negotiation of the contract. Council Member Best then inquired whether the opinion of the City Manager and staff had been presented to the Council. City Manager Garza referred to his memorandum previously presented to the Council. Mr. Garza then discussed the initial Minutes Regular Co. .;il Meeting May 11, 1993 Page 3 concern regarding the value of the system in which the consultant determined to be between $26 and $32 million. Mr. Garza then referred to the $37 million bid which was received. He further stated that, if the bids had been below $26 million, the choice would have been easy. Dr. Best then requested a copy of Mr. Garza's memorandum concerning his opinion. Council Member Martin then inquired about the staff's recommendation concerning the sale. City Manager Garza stated that, because of the need to effectively carry out the policy directives of the Council, it was imperative that the entire City Council request his recommendation which the Council then did. Mr. Garza stated that two factors were important when considering the relevance of the sale. He stated that the first factor concerned whether the City would be receiving sound value for the system, in which he assessed the City would be. Mr. Garza further stated that the voters would consider three items when voting on the issue. He stated that these three items consisted of trust, pride of ownership, and the accountability of SU to run the system. He stated that, based on these three items, he felt the City should not sell the system. Mayor Rhodes then inquired whether the City Manager would recommend the Council to place the sale on the ballot. Mr. Garza replied that a great amount of time and money had been expended, and the item should be placed on the ballot. Mayor Rhodes then referred to the necessity to ascertain a long term water supply and problems with the City's landfills and sewer systems in which funds were not available. Then, City Manager Garza discussed other options available. He stated that the City could petition an election for a one-half cent sales tax for water resources, petition a general election for utilization of property tax supported bonds, or increase the utility rates, assuming the rates could be above the six percent cap in the Charter. Mayor Rhodes commented that these options would not be popular with the voters as well. She further stated that the gas company belonged to the public and that the public had a right to consider the sale of the gas system as well as the other options. Council Member Best then inquired whether City Manager Garza felt that placing the sale on the ballot was being unfair to SU, since the entire Council did not support the sale. City Manager Garza replied that SU was aware of the risk involved. Council Member Galindo stressed the importance of properly handling federal mandates concerning the water releases. Mayor Rhodes commented that funds would be necessary even if the City did not continue water releases. Mr. Galindo then suggested that staff be directed to cease all water releases. Council Member Moss stated that, if the City borrowed funds through twenty year floating bonds, ten percent per year for debt service would be required. He stated that, on the other hand, if the system were sold, $3.7 million a year would be saved in debt service. City Manager Garza stated that, with the current interest rate, the amount would be approximately $3.2 million annually. Mr. Hennings then discussed the effects the sale would have on the City's budget. He stated that, in the event of the sale, the City would lose approximately $2.8 million in net payments from the gas system, but would recover approximately $1,400,000 through the Minutes Regular Co, .:il Meeting May 11, 1993 Page 4 franchise fee and property taxes. He further stated that the effect on the City's budget would be a negative $1,400,000 after the initial three year period. Responding to Council Member McNichols, Mr. Hennings explained the contract provisions concerning utilization of City employees for meter reading and billing. Responding to Council Member Martin, Mr. Hennings reviewed the current budget of the gas system. Mr. Martin inquired about the expenditures which would cease after the proposed sale. A brief discussion ensued, and it was determined that further information would be provided concerning this consideration. Responding to Council Member Best, Mr. Garza discussed the history of the City's combined utility fund. Dr. Best then discussed the possibility of a utiliiy assistant city manager position if the gas system were not sold. Mr. Garza stated that this could be examined. Council Member Cooper inquired about the responsible party for the $320,000 expended to date, if the sale were not placed on the ballot. Mr. Hennings replied that the City's Gas Utility Fund would be responsible. In response to Council Member McNichols, Mr. Hennings reviewed the water and wastewater projects determined necessary during the upcoming years. Council Member Galindo inquired about the Stevens Plant Filters Rehabilitation, and Mr. Hennings explained. Responding to Mayor Pro Tem Longoria, Mr. Hennings discussed the projects which were necessary through federal mandates, and possible negotiations concerning these projects. Council Member Martin referred to the option concerning the general obligation bonds, and inquired about the amount of tax increases required to raise funds comparable to the proceeds from the sale. Mr. Garza replied that the amount would be approximately five and one-half cents. Mr. Martin stated that this increase would be necessary for the water and wastewater projects and would not fund additional projects. Council Member Noyola commented that he was not in favor of placing both the gas sale and the tax increase on the ballot. Council Member McNichols referred to the upcoming workshop on financing utility capital needs and stated that alternatives could be discussed. Mr. Garza then stated that none of the choices would be favorable to the public. He also referred to the negotiations concerning the Choke Canyon debt. Council Member Best inquired about the means by which other cities were contending with federal mandates. City Manager Garza commented that other cities were also working with professional associations, such as the Texas Municipal League (TML), to Minutes Regular Coy._ it Meeting May 11, 1993 Page 5 request the state and federal governments to lessen the mandates and/or provide funds for compliance. Further, Mr. Garza stated that the City compared well when compared to other cities, and discussed experiences in other cities regarding water and wastewater matters. Further deliberation ensued concerning proposed capital improvements. Mr. Hennings next summarized the proposed tariff. He commented on the possibility of reexecuting the tariff ordinance after the election in August. Responding to Council Member Moss, Mr. Hennings stated that the reexecution would not involve any rate changes. Mr. Hennings next briefly summarized the credentials of Southern Union Gas Company. Mr. Pete Kelly, President of Southern Union, expressed appreciation to the staff for their cooperation. Mr. Kelly commented that the sale of the gas system would be beneficial to the City as well as his company. He stated that the gas rates in the other cities utilizing his company were lowered considerably. Mr. Kelly then discussed the economic potentials available in the City through the use of gas. He also stated that the future of natural gas and the future of the City would allow recovery of the costs initially expended by his company. Responding to Council Member Best, Mr. Kelly discussed Southern Union's portfolio. Council Member Martin inquired about the market for expansion referred to by Mr. Kelly, and Mr. Kelly discussed marketing ventures by his company which would provide revenue from the sale of gas on a monthly basis. Council Member Martin discussed the importance of marketing gas which was limited to municipalities. In response to Council Member Cooper, Mr. Kelly stated that, since his company purchased large volumes of gas, the price was lower than the City's price. In further response, Mr. Kelly discussed the reduced rates in other cities through the utilization of his company. Mr. Gene Dubay, representative of Southern Union, then referred to SU's most recent purchase in which lower gas rates were experienced. Council Member Best referred to the elasticity clause contained in the contract, and inquired about the regulator of utility rates. Mr. Kelly replied that the City regulated the rates, and discussed his company's low percentage of appeals to the Texas Railroad Commission. Mr. Kelly then discussed the Public Rate Utility Board established in the City of El Paso, Texas, concerning gas charges. Responding to Council Member McNichols, Mr. Kelly stated that SU's initial utility rate structure consisted of a revenue sharing mechanism allowing SU and the City to share $.50 cents out of every dollar for purchased gas savings. Council Member McNichols Minutes Regular COL. _4:i1 Meeting May 11, 1993 Page 6 inquired whether SU would be willing to change the proposed rate structure to be more appealing to the public. Mr. Dubay stated that SU would be willing to spread the rate increases over a five year period instead of the proposed structure. Council Member Martin stated that to obtain a five year "smoothing" effect, the cost of service for the upcoming year should increase because the cost of gas would decrease. Mr. Martin then commented that the proposed rate structure appeared to produce fairly level rates over the five year period. Mr. Kelly agreed. Mr. Kelly responded to several inquiries from Mayor Pro Tem Longoria concerning SU's proposed gas rates. Council Member Moss commented that the expansion of natural gas in the community would reduce the use of electricity. He further stated that SU was offering an alternate source of energy not presently being fully utilized. Mayor Rhodes announced the public hearing and approval of the rate program, gas rates and rules of service within the City limits, subject to certain contingencies; and establishing an effective date. Mr. Billy Deal, 1926 Merriman Avenue, opposed the sale of the gas system, and requested the Council to examine alternatives. Mr. Abel Alonzo, 1701 Thames, stated his opposition to the sale of the gas system and stated approval of a one-half cent sales tax instead. Mr. Phil Rosenstein, 949 Bobalo, commended the staff for the presentation, and commented favorably on the services provided to local senior citizens by the gas department. He requested continuance of the services through the City. Mr. J. E. O'Brien, 4130 Pompano, discussed the timetable of the capital improvements project list, and referred to cities currently utilizing Southern Union Gas Company. Mr. Claude D'Unger, 1201 Del Mar, stated that he was opposed to the sale of the gas system because the arrangement could not be reversed if it proved unsuccessful. Council Member Galindo moved to close the public hearing, seconded by Council Member McNichols, and passed unanimously. Council Member McNichols suggested that all alternatives be addressed at the upcoming workshop on financing utility capital needs. Dr. McNichols then recommended the development of a List weighing the "pros" and "cons" of the sale. Mayor Rhodes agreed with this suggestion, and requested that it be placed on an upcoming agenda allowing public input. Minutes Regular Co, ,;i1 Meeting May 11, 1993 Page 7 Council Member Martin reviewed the past actions leading to the present proposal of the sale of the gas system. Mr. Martin stressed the importance of raising funds to cover the necessary capital improvements in the City. He referred to Mr. Garza's alternatives, and asked if an eighteen percent rate increase would be required. Mr. Garza commented that the total increase would involve six percent increases in all utility rates, or approximately forty percent in gas rates alone. Mr. Martin stated that staff opposed the sale of the gas system, and suggested raising utility rates more than they would be raised through the sale and/or suggested raising property taxes. He also stated that the City was not properly marketing the sale of natural gas, and referred to the marketing ventures revealed by SU. He stated that these ventures would lower the total overall cost. He then referred to the limitations placed on municipalities concerning marketing gas. Additionally, Mr. Martin referred to the provisions in the City Charter concerning profits from the gas system. Lastly, Mr. Martin stated that SU's proposed gas rates could be reduced further by five percent if the City did not receive the franchise fee. Council Member McNichols commented that the Council, as the leaders of the City, should determine whether to place the sale of the gas system on the ballot. Council Member Galindo commented that the City was presently running the system effectively. He stated that a private contractor could obtain gas at a cheaper rate, and inquired about the restrictions placed on municipalities for marketing gas. City Manager Garza stated that marketing gas was a Council decision. Then, Council Member Galindo commented that options were available to the City to save the consumer's cost. Mr. Garza stated that credit had to be given to the private sector concerning their abilities to market gas. City Secretary Chapa polled the Council for their votes as follows: a. FIRST READING ORDINANCE Approving the contract of sale of the Corpus Christi Gas Distribution System between the City of Corpus Christi and Southern Union Gas Company subject to approval by the qualified voters; and authorizing the City Manager sign such contract. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Cooper, Longoria, Martin, McNichols, and Moss voting "Aye"; Galindo and Noyola voting "No." b. FIRST READING ORDINANCE Granting to Southern Union Gas Company, a division of Southern Union Company, a corporation, its legal representatives, successors, lessees and assigns, grantee herein, certain powers, licenses, rights-of-way, privileges and franchise to construct, operate and maintain in the City of Corpus Christi, Texas as now or hereafter constituted, works, systems and plants for the handling, transporting, sale, and distribution of gas in said City and for the Minutes Regular Co, .;il Meeting May 11, 1993 Page 8 distribution and sale of gas to said City, its inhabitants, and others and to use the streets, avenues, easements, rights-of-way, alleys, highways, sidewalks, bridges and other structures and places and public grounds, except parks, in said City for a period of twenty (20) years and prescribing certain rights, duties, terms and conditions herein mentioned, and providing for the payment to said City of a percentage of certain revenues of grantee from its operations therein and other consideration; providing for arbitration of certain disputes; providing for the acceptance hereof by grantee; containing a savings clause; and repealing conflicting ordinances. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Cooper, Longoria, Martin, McNichols, and Moss voting "Aye"; Galindo and Noyola voting "No." c. FIRST READING ORDINANCE Approving rate program, gas rates and rules of service within the City limits, subject to certain contingencies; and establishing an effective date. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Cooper, Longoria, Martin, McNichols, and Moss voting "Aye"; Galindo and Noyola voting "No." d. FIRST READING ORDINANCE Ordering a Special Election to be held on August 14, 1993 in the City of Corpus Christi for the consideration of the sale of the Municipal Gas System, providing for holding such election; providing for notice of election and publication thereof; providing for establishment of branch early polling places; designating polling place locations; and enacting provisions incident and relating to the subject and purpose of this ordinance; and providing for severability. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Cooper, Longoria, Martin, McNichols, and Moss voting "Aye"; Galindo and Noyola voting "No." Mayor Rhodes opened the discussion on Item 2, motion approving the storm water permit application, part 2. City Manager Garza stated that Item 2 contained the staff's comments and requests from the last council meeting. Mr. Garza explained the necessity and the costs of the dry weather monitoring and the educational process remaining in the permit application. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: Minutes Regular Co, .il Meeting May 11, 1993 Page 9 2. M93-145 Motion approving the storm water permit application, part 2, for submission to the U.S. Environmental Protection Agency. The foregoing motion passed by the following vote: Rhodes, Best, Cooper, Galindo, McNichols, and Moss voting "Aye"; Martin voting "No"; Longoria and Noyola absent. Mayor Rhodes opened the discussion on Item 3, ordinance authorizing execution of a one-year lease of two fields at the Greenwood Softball Complex with the Rich Family Partnership, d/b/a Grandstands Softball Complex (Grandstands). City Manager Garza explained the staffs recommendation regarding the proposed contract with the Grandstands. Mr. Garza stated that the privatization would reduce the City's expenditures by approximately $83,000 annually. Mr. Garza also referred to the $25,000 letter of credit provided by the Grandstands. City Manager Garza recommended approval of the staffs recommendation. Council Member Moss inquired whether the maintenance specifications in the contract were adequate. City Manager Garza replied in the affirmative, and discussed the specifications. Council Member Noyola inquired about the future of the City employees currently performing the maintenance, and City Manager Garza stated that these employees would perform the maintenance at the other City fields. Responding further, Mr. Garza stated that an entrance fee to the softball games was not contained in the contract. Council Member Galindo referred to the comparison of the proposed contracts in the agenda material, and commented that the proposal from the Corpus Christi Softball Association (CCSA) appeared to reduce the City's subsidy more than the Grandstands' proposal. Mr. Garza agreed, and stressed the importance of the ability to perform the contract. Mr. Garza then referred to the installation of a meter to monitor power consumption, and the agreement to run the senior citizen leagues at the City's current rate. Mr. Galindo then expressed concern that management would be divided at the Greenwood Softball Complex. Council Member Best posed several questions to City Manager Garza concerning the Grandstands contract. Mayor Pro Tem Longoria called for comments from the audience. Mr. Harry Falcon, 929 Driftwood, referred to the altercations occurring at the Grandstands Softball Complex, and expressed concern about alcohol at the complex. He spoke favorably on the performance of the CCSA and suggested awarding the contract to CCSA instead. Mr. Falcon further stated that CCSA had not been previously aware of the $25,000 letter of credit. Minutes Regular Co. 2i1 Meeting May 11, 1993 Page 10 City Manager Garza commended highly on the past performance of the CCSA. He further stated that, because of the good past relationship, he had recommended to waive the $25,000 letter of credit. He stated that CCSA was previously aware of the letter of credit. Council Member Galindo expressed concern about the liability aspect, and Mr. Garza explained that the City would be indemnified from accidents occurring at the leased fields. Mr. Lonnie Laningham, 4713 Alma, reviewed his credentials concerning softball. He stated that he felt Less emphasis should be placed on the letter of credit, and more emphasis on the quality of service. He stated that the CCSA was a better proposal and reviewed the proposal. Mr. Laningham expressed concern that alcohol was served at the Grandstands Complex, and that Mr. Rich would have control of scheduling the softball games. Mr. Laningham refused to leave the podium. Council Member Noyola made a motion to allow Mr. Laningham to continue to speak for two minutes more and the motion was seconded. City Secretary Chapa polled the Council for their votes and the motion failed, five against and three for. Mr. Manuel Wesar, 1829 Fountain Street, referred to the petitions against awarding the contract to the Grandstands, and stated his opposition. Mr. Wesar also requested an extension of time for the privatization as extended for the golf course contract. Council Member Moss stated that the extensions for the golf course contract concerned contract performance and not bidding. Responding to Council Member Noyola, Mr. Wesar discussed the petition against awarding the contract to the Grandstands. Council Member Galindo inquired about the difference in the savings to the City through each proposal. Mr. Garza discussed the savings and stressed the importance of performance of the contract. Mr. Warren Dean, 5058 Eider, commented favorably on the past association of the CCSA, and expressed concern that a private entity would have difficulties providing adequate softball services. Responding to Council Member Best, Mr. Laningham expressed concern that the church softball teams would be subsidizing beer sales at the Grandstands, and that the Grandstands would schedule all the softball games at their own complex. A discussion ensued, and it was determined that alcohol consumption or possession in a City park would not be allowed through City ordinance. City Secretary Chapa polled the Council for their votes as follows: Minutes Regular Co til Meeting May 11, 1993 Page 11 3. ORDINANCE NO. 021644 Ordinance authorizing the City Manager or his designee to execute a one-year lease of two fields at the Greenwood Softball Complex with the Rich Family Partnership, d/b/a Grandstands Softball Complex. An emergency was declared and the foregoing ordinance passed by the following vote: Best, Cooper, Martin, McNichols, and Moss voting "Aye"; Galindo, Longoria, and Noyola voting "No"; Rhodes absent. Mayor Pro Tem Longoria opened the discussion on Items 4a and 4b, motion and ordinance concerning the 1993 Summer Food Service Program. Mr. Tom Utter, Group Manager, Development Services, stressed the importance of the summer food service program. He also reviewed the provisions in the contract. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 4a. M93-146 Motion authorizing the City Manager or his designee to accept a federal grant and to execute contracts and all related documents with the U.S. Department of Agriculture (USDA), the Texas Department of Human Services (TDHS) and Corpus Christi Independent School District for the 1993 Summer Food Service Program. The foregoing motion passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, McNichols, Moss, and Noyola voting "Aye"; Martin absent. 4b. ORDINANCE NO. 021645 Ordinance appropriating a grant in the amount of $158,580 from the Texas Department of Human Services to operate Summer Food Service Program for Summer Recreation Program participants aged one to eighteen years. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, McNichols, Moss, and Noyola voting "Aye"; Martin absent. Mayor Rhodes announced the public hearings on the alley closing and the zoning cases on the days agenda. Minutes Regular Co it Meeting May 11, 1993 Page 12 Mayor Rhodes opened the discussion on the closure and abandonment of a 10 -foot wide by 150 -foot long alley between Lots 1-6 and Lots 59-64, Block 903, Fitchue Place Addition. Mayor Rhodes inquired whether there were any objections to the closure and abandonment. No one opposed. Mayor Rhodes called for comments from the audience, and there were none. Council Member Moss moved to close the public hearing; seconded by Council Member Galindo, and passed unanimously. City Secretary Chapa polled the Council for their votes as follows: 5. ORDINANCE NO. 021646 Ordinance closing and abandoning a 10 -foot wide by 150 -foot long alley between Lots 1 through 6 and Lots 59 through 64, Block 903, Fitchue Place Addition; subject to compliance with the specified conditions and the applicant replatting the property within 180 days at his expenses. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, McNichols, Moss, and Noyola voting "Aye"; Martin absent. Mayor Rhodes announced the public hearing on the following zoning case: 6. Case No. 393-3. Mrs. M.W. Vickers: A change of zoning from "R -1B" One -family Dwelling District to "A-1" Apartment House District on the south 7.20 acres of the north half of Lot 12, Section 31, Flour Bluff and Encinal Farm and Garden Tracts, located on the west side of Paul Jones Avenue, between Decatur and Vetters Drive. Mayor Rhodes stated that both the Planning Commission and staff recommended denial of the "A-1" Apartment House District and in lieu thereof, approval of "R-2" Multiple Dwelling District. Mayor Rhodes called for comments from the audience. Mrs. Gwen Newsom, 1724 Paul Jones, stated that she was opposed to the rezoning of the property because of increased traffic in the area and the lowering of the value of her home. Mrs. Newson presented to the Council a flyer placed on her door concerning the rezoning. Mr. Tom Utter, Group Manager, Development Services, reviewed the past history of the school building. He also made a comparison among the three suggested zoning possibilities. Minutes Regular Co. 31 Meeting May 11, 1993 Page 13 Responding to Mayor Rhodes', Mr. Brandol Harvey, Director of Planning, discussed the actions leading to the staffs recommendation. Mr. Harvey then displayed slides depicting the referenced and surrounding areas. Mr. Harvey next discussed the present traffic patterns and street designs in the area, and future extension of Paul Jones Avenue. Council Member Best commented that, since the school building is unattractive and a hazard to the area, the residents should be pleased with the improvements. Council Member Cooper inquired about the proposed improvements. Mrs. Louise Vickers, 7 Hewitt Drive, discussed her proposed plans. Council Member Martin referred to the use of the property alluded to in the flyer (25 apartment units in the existing school building), and recommended a special permit for this use. Mr. Martin then inquired whether Mrs. Vickers would accept the special permit. Mrs. Vickers replied that she would rather have the "R-2" zoning. Council Member McNichols agreed with the "R-2" zoning recommended by staff. Mr. C. L. Freeman, 1802 Paul Jones, spoke in opposition to the rezoning. Mr. Freeman further expressed concern that adequate water was not available to handle potential fires, and discussed past fires at the school building. Mr. Tommy McDonald, 1910 Paul Jones, opposed the rezoning because of increased traffic and inadequate water pressure to handle fires. Mr. Roberto Yzaguirre, 1822 Paul Jones, stated opposition to the rezoning because the increased traffic in the area would be hazardous to the children. Mr. Yzaguirre further stated that the school building should be demolished. Mr. Abel Alonzo, 1701 Thames, urged the Council to approve the rezoning. Mrs. Melody Null, 1726 Merriman, agreed with the special permit to allow apartments for senior citizens. Mr. Steve Duvall, 1926 Paul Jones, stated that he was familiar with the school building, and felt the building was a sound structure. Mr. Duvall then spoke in favor of the rezoning. Mr. Ray Schockley, 1901 Paul Jones, stated that he was in favor of preserving the school building, and therefore, in favor of the rezoning. Ms. Betty Dalton, 5833 Shamrock, agreed with the rezoning for use by retired Navy personnel, since the area was in close proximity to the Naval Air Station. Minutes Regular Co, it Meeting May 11, 1993 Page 14 Mr. Carl Sims, City resident, commented highly on the rezoning and his business experiences with Mrs. Vickers. Mrs. Rosie Yzaguirre, 1822 Paul Jones, discussed past attempts to rezone the property and stated that she was still in opposition. Council Member Best made a motion to grant a special permit for the use of the school building and the remaining property to stay "R -1B". Mr. Utter explained the process of granting a special permit. Dr. Best then changed his motion to allow the staff to return to the Council an appropriate special permit ordinance and continuation of the present zoning on the remaining property. Mayor Rhodes stated that she agreed with the staffs recommendation. Mayor Rhodes stated that the motion was seconded and she then called for a voice vote. The motion failed. Mayor Rhodes made a motion to deny the "A-1" Apartment House District, and in lieu thereof, approve "R-2" Multiple Dwelling District, seconded by Council Member McNichols. Council Member Martin inquired whether the 20 percent rule was in effect, and Mr. Utter replied that it was not. Additionally, City Secretary Chapa explained that a majority of votes plus one was required to overturn the Planning Commission's recommendation. Council Member Martin moved to close the public hearing; seconded by Council Member McNichols, and passed unanimously. City Secretary Chapa polled the Council as follows: 6. ORDINANCE NO. 021647 Ordinance amending the Zoning Ordinance upon application by Mrs. M.W. Vickers by changing the Zoning Map in reference to the south 7.20 acres of the north half of Lot 12, Section 31, Flour Bluff and Encinal Farm and Garden Tracts, from "R -1B" One -family Dwelling District to "R-2" Multiple Dwelling District. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, Moss, and Noyola voting "Aye." Mayor Rhodes announced the public hearing on the following zoning case: 7. Case No. 393-4. Nilda Remmich: A change of zoning from "R -1B" One -family Dwelling District to "B-1" Neighborhood Business District on Lot 6, Block 1, Mahan Place, located on the south side of Gollihar Road, approximately 480 feet east of Kostoryz Road. Minutes Regular Co. .:i1 Meeting May 11, 1993 Page 15 Mayor Rhodes stated that both the Planning Commission and staff recommend denial of the "B-1" District, and in lieu thereof, approval of a Special Permit for retail food and gift sales use, subject to the site plan and seven (7) conditions. Mayor Rhodes inquired whether the applicant was in agreement with the special permit conditions, and Mr. Utter replied in the affirmative. Mayor Rhodes called for comments from the audience and there were none. No one opposed the zoning request. Council Member Galindo moved to close the public hearing; seconded by Council Member Moss, and passed unanimously. City Secretary Chapa polled the Council as follows: 7. ORDINANCE NO. 021648 Ordinance amending the Zoning Ordinance upon application by Nilda Remmich by granting a Special Permit for retail food and gift sales use subject to the site plan and conditions in reference to Lot 6, Block 1, Mahan Place. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, Moss, and Noyola voting "Aye." Mayor Rhodes announced the public hearing on the following zoning case: 8. Case No. 493-1, A.D. Hallmark: A change of zoning from "B-4" General Business District to "I-2" Light Industrial District on the south portion of Tract 1-R and the west portion of Tract 2-R, Hutchins Tracts, located on the east side of Rand Morgan Road, approximately 280 feet south of Leopard Street. Mayor Rhodes stated that both the Planning Commission and staff recommend approval of the application. No one opposed the zoning change. Council Member Best moved to close the public hearing; seconded by Council Member McNichols, and passed unanimously. City Secretary Chapa polled the Council for their votes as follows: 8. ORDINANCE NO. 021649 Ordinance amending the Zoning Ordinance upon application by A.D. Hallmark by changing the Zoning Map in reference to the south portion of Tract 1-R and the west Minutes Regular Co. , it Meeting May 11, 1993 Page 16 portion of Tract 2-R, Hutchins Tracts, from "B-4" General Business District to "I-2" Light Industrial District. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, Moss, and Noyola voting "Aye." The Council went into closed session pursuant to Article 6252-17, Sec. 2(e) regarding In the Matter of an Order Establishing Permanent Operating Procedures pertaining to Certificate of Adjudication No. 21-3214 of the City of Corpus Christ, Nueces River Authority, and The City of Three Rivers, before the Texas Water Commission, at 5:50 p.m. The Council returned from closed session at 7:00 p.m. Mayor Rhodes opened the public hearing on the Community Development Grant Program. Group Manager Tom Utter made a brief presentation to the Council stating the recommendations from staff and the Planning Commission. Mr. Utter stated that $5,817,500 in CDBG funds were available for distribution. Mayor Rhodes asked for public comment Mr. Vic Menard, 14514 Cabana E., spoke in favor of the Ethel Eyerly parking lot project. Mr. Jack Ratkovic, 14514 Cabana E., also spoke in support of the Ethel Eyerly parking lot project. He stated that in his opinion, the Council should finish projects before they start new ones. He asked people in the audience in support of this project to stand. Mr. Wayne R. Tatman, 505 Williamson Place, President of the Y.M.C.A., spoke in support of the Tower Teen Center. Mayor Rhodes stated that there was a lot of support for the Teen Center. However, she stated, in her opinion, this project did not meet the eligibility requirements for CDBG funding. Further deliberation ensued regarding the eligibility of the project. In response to a question from Mr. Martin, Mr. Kelly Elizondo stated that the Teen Center project was in the CDBG eligible area but because it was in the borderline area, it had to meet additional criteria. He stated that the service would have to benefit primarily low to moderate income individuals. Discussion followed regarding the use of a log or record to document the use of the Teen Center by low to moderate income individuals. Mr. Martin stated that he felt it should qualify because they could keep a record of the individuals using the Center; and Minutes Regular CoL_.cil Meeting May 11, 1993 Page 17 because of the area, he was confident that a majority of the use would be in the low to moderate income category. Ms. Olivia Flores, 442 Mohawk, spoke in support of the Zavala Senior Citizen project. Mr. Gene Graham, 13702 Primavera, cited support for the Ada Wilson sprinkler system project. He asked staff and supporters of the project in the audience to stand. Mr. Ed Seeger, 1919 Leopard, Director of the Corpus Christi Metro Ministries, Inc., asked the City Council to support the purchase of some land in the Leopard area for services to the homeless. Mr. John Dunn, 1921 Thames, gave the recommendations of the Senior Community Services Advisory Committee. They were in support of current senior centers projects and the construction of two new ones. Their priorities were as follows: 1) new Zavala Senior Center; 2) American Disabilities Act improvements to current senior centers; 3) improvements to the Central Kitchen; 4) parking lots for Lindale, Greenwood, and Ethel Eyerly; and, 5) new center in the northwest area of the City. Mr. Phil Rosenstein, 949 Bobalo, spoke in support of the parking lot projects for the Ethel Eyerly, Lindale, and Greenwood Centers. Mr. Joe Martinez, 2590 Morgan, Executive Director of the Nueces County Community Action Agency, asked for Council support of the NCCAA Headstart projects. Mr. Henry Nau, 113 Clemmer, spoke in support of the Kids of the Neighborhood Day Care Center project. Dr. Maria Luisa Garza, 2203 Baldwin, cited support for upgrading buildings housing the Gulf Coast Council of La Raza program. Mr. David Lopez, President of Memorial Medical Center, asked the Council to support the Memorial Hospital project planned for the northside of the City. Discussion followed regarding the use of the funds and plans for the future. Mr. Noyola asked the Council to favorably consider a similar project next year in the westside area. A motion was made by Mr. Martin to close the public hearing, seconded by Mr. Galindo. The motion was passed unanimously. Considerable discussion ensued regarding the distribution of funds. City Secretary Chapa polled the Council for their votes and the following passed: Minutes Regular Co4_.eil Meeting May 11, 1993 Page 18 20. M93-153 Motion adopting the FY93 CDBG Program and authorizing the City Manager or his designee to execute and submit to the Department of Housing and Urban Development the required documents. The foregoing motion passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, Moss, and Noyola voting "Aye." (A list of the projects and distribution of funds is attached.) Mayor Rhodes reconvened the Regular Council Meeting at 8:45 p.m., and called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 10 through 19. Council Members requested that Items 11, 16, 17, and 18 be withheld for discussion. City Secretary Chapa polled the Council for their votes as follows: 10. M93-147 Motion approving supply agreements for traffic signals, signal controllers and allied hardware, in accordance with Bid Invitation No. BI -0183-93 with the following companies for the following amounts, based on low bid, best bid and only bid for an estimated annual expenditure of $257,664.00. The term of the agreements shall be for twelve months with an option to extend for up to an additional twelve months, subject to the approval of the suppliers and City Manager or his designee. Funds have been budgeted by Street Services for FY 92-93: Traffic Parts, Inc. Spring, Texas (Traffic signals, pedestrian push buttons) $10,985 Texas Signal Equipment Round Rock, Texas (Controllers, allied hardware) $149,789 ASI Ft. Worth, TX (Pedestrian signal, vehicle detector) $14,880 Econolite Control Products, Inc. Houston, Texas (Traffic signals, pedestrian signals, controllers) $74,170 Traffic Signals, Inc. Edmond, OK (Traffic signal) $7,840 Minutes Regular Co, _cil Meeting May 11, 1993 Page 19 Grand Total: $257,664 The foregoing motion passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, Moss, and Noyola voting "Aye." 12. M93-149 Motion awarding a contract in the amount of $50,353 to Chapman and Bailey Construction Company, Inc. to improve storm drainage in the Turtle Cove Subdivision in the Flour Bluff area of the City. The foregoing motion passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, Moss, and Noyola voting "Aye." 13. ORDINANCE NO. 021652 Ordinance authorizing the City Manager to execute a Use Privilege Agreement with I -LINK, Inc. for the right to install and maintain two 1.9" outside diameter flexible ducts, one serving as a spare, and a fiber optic data communication cable in the second within the following streets and establishing a fee of $22,450: a. Leopard Street from west of Callicoate Road (FM 1694) to 100 feet west of Rehfeld Road, b. Agnes Street from South Padre Island Drive (SH 358) to North Port Avenue, c. North Port Avenue from Agnes Street to Comanche Street, d. Comanche Street from North Port Avenue to Nineteenth Street, e. Nineteenth Street from Comanche Street to Mussett Street, f. Mussett Street from Nineteenth Street to Crosstown Expressway (SH 286), g. Howard Street from Crosstown Expressway (SH 286) to Mexico Street, h. Street crossings along Union Pacific Railroad right-of-way at Lipan, Leopard, Winnebago, Nueces, and West Broadway, An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, Moss, and Noyola voting "Aye." 14. M93-150 Motion authorizing the City Manager to reject all bids received for the Senior Community Services Food Service Contract. The foregoing motion passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, Moss, and Noyola voting "Aye." Minutes Regular Cc,. -cil Meeting May 11, 1993 Page 20 15. M93-151 Motion approving the appointment of three expanded Board positions for the Corpus Christi Downtown Management District. The foregoing motion passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, Moss, and Noyola voting "Aye." 19. ORDINANCE NO. 021653 Approving petition of Central Power and Light Company for new economic development tariff to be effective within city limits. The foregoing ordinance passed on second reading by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, Moss, and Noyola voting "Aye." Pursuant to Items 11a, 11b, and 11c pertaining to the construction of traffic signal coordination improvements along Everhart Road and Baldwin Boulevard, Council Member Moss inquired whether the South Staples/Everhart Road area was controlled by the Carmel/Parkdale coordination system. Mr. Carl Crull, Director of Engineering, replied in the affirmative, and discussed the proposed coordination. Mayor Rhodes called for comments from the audience, and there were none. Pursuant to Item 16, motion concerning the change of the employee benefit plan regarding the lease with the Lady Lex Museum, Council Member Cooper inquired whether the change would remove the City's workman's compensation protection. City Attorney Bray explained that the loss was not attributable to the City, but to the Lexington Association. Mr. Bray further discussed the proposal. Council Member Martin stated that he supported the item and suggested an examination of the same provision for suppliers, vendors, and contractors as well. He stated that this could allow small companies to bid on City items. Council Member Martin then inquired whether the City would be liable in this instance, since the liability at the Lady Lex Association was reduced. City Attorney Bray replied that the City would not in this instance. Mr. Martin then referred to a certain situation utilizing outside contractors without worker's compensation insurance and inquired about the liability to the City. Mr. Bray stated that lessees (outside contractors) do not perform city operations and were solely independent of the City. Next, Mr. Martin inquired about the reasons the City currently requires outside contractors to carry worker's compensation insurance. City Attorney Bray replied that, when the City owned the property at the construction site, there was greater amount of liability than when the property was owned by another entity. Further, City Attorney Bray stated in a lessor/lessee type relationship, the lessor was not responsible for the lessee's activities on the premises, as in Item 16. He further stated that, when the City exercised a large amount of control over a project, the City could be liable. City Attorney Bray stated that this issue is currently being researched by the Legal Department and information would be presented to the Council soon. Minutes Regular Co. _cil Meeting May 11, 1993 Page 21 Pursuant to Item 17, amending the Code of Ordinances, Chapter 2, Administration, Division 16, Airport Advisory Committee (AAC), City Manager Garza stated that Subsection (8) of Section 2-176 which clarifies that the Committee's duties remain advisory in nature, and that Council and staff may act on any matter without referral to the Board, if deemed necessary had not been included in the ordinance as stated in his memorandum in the agenda material. Responding to Council Member Martin, City Attorney Bray stated that the statement was true whether it was in the ordinance or not. Further, Mr. Garza stated that the changes had been approved by Mr. Dan Pedrotti, Chairman of the Airport Advisory Committee. Council Member Galindo made a motion that the name of the AAC remain "Airport Advisory Committee" instead of "Airport Advisory Board." City Manager Garza stressed the importance of the name change to the Airport Advisory Committee. Mayor Rhodes agreed with the name change. Mr. Galindo's motion failed for lack of a second. Mayor Rhodes called for comments from the audience, and there were none. Pursuant to Item 18, amending the Code of Ordinances pertaining to sewer rates, Council Member Martin inquired about the specific language being deleted. City Attorney Bray explained. Council Member Martin expressed concern that the deletion removes all reference to winter averaging. City Manager Garza stated that the intent was to delay the final decisions on winter averaging. Council Member Martin suggested that the date, June 1, 1993, be deleted in the relative areas. City Manager Garza stated that two dates were involved: this year's effective date and future rate change dates. Council Member Martin also stated that the base period would be affected. Council Member Martin then suggested returning to the Council on June 25, 1993, with an ordinance removing the mandate stating that winter averaging would be in effect on June 1. City Manager Garza stated that the item was withdrawn from consideration at the day's meeting. City Secretary Chapa polled the Council for their votes as follows: lla. RESOLUTION NO. 021650 Resolution authorizing the City Manager or his designee to execute two contractual agreements with the State of Texas, acting through the Texas Department of Transportation, for the construction of traffic signal coordination improvements along Everhart Road and Baldwin Boulevard, with the City's ten percent escrow share of construction cost estimated at $20,970.17 for the Everhart Road project and $9,079.44 for the Baldwin Boulevard project. The foregoing resolution passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, Moss and Noyola voting "Aye." Minutes Regular Co__.ci1 Meeting May 11, 1993 Page 22 11.b. ORDINANCE NO. 021651 Ordinance appropriating $79,817.00 as part of a Texas Department of Transportation Highway Safety Improvement Program Grant for purchase of traffic control signal coordination equipment for the Everhart Road and Baldwin Boulevard traffic signal coordination projects. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, Moss, and Noyola voting "Aye." 11.c. M93-148 Motion approving the purchase of two master traffic signal controllers and twelve individual traffic signal controllers in accordance with Bid Invitation No. BI -0186-93 from Texas Signal Equipment, Round Rock, Texas, based on low bid for a total expenditure of $79,817. Funds have been budgeted for FY 92-93 by Traffic Engineering. The foregoing motion passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, Moss, and Noyola voting "Aye." 16. M93-152 Motion authorizing the City Manager or his designee to administratively accept substantially equal employee benefit plans as an alternative to the workers' compensation insurance requirement of Section 9(B) of the lease with the Lady Lex Museum on the Bay Association passed on March 24, 1992, by Ordinance No. 021354. The foregoing motion passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, Moss, and Noyola voting "Aye? 17. FIRST READING ORDINANCE Amending the Code of Ordinances, Chapter 2, Administration, Division 16, Airport Advisory Committee, Sections 2-175 and 2-176. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Cooper, Longoria, Martin, McNichols, Moss, and Noyola voting "Aye"; Galindo voting "No? 18. WITHDRAWN Amending the Codc of Ordinances, Chapter 55, Utilities, Article VII, Sewer Rates, Section 55 100, Schedule, by deleting paragraph (b) which provides for establishing winter average billing for one family residential customers effective June 1, 1993. Minutes Regular Co.._.cil Meeting May 11, 1993 Page 23 * * * * * * * * * * * Mayor Rhodes called for the City Manager's report. Mr. Garza referred to the scheduling of the discussion on the financing alternatives for the utilities CIP and suggested June 1, 1993 instead of May 25, 1993. Council Member McNichols inquired about the May 18, 1993 meeting concerning City goals. City Secretary Chapa stated that a goal setting workshop was scheduled for May 18, 1993 (lunch at 12:30 noon) at the Bayfront Convention Center. He further stated that Dr. Ed Jones from Corpus Christi State University had agreed to facilitate the meeting at 1:30 p.m. until approximately 4:30 or 5:30 p.m. Mr. Chapa further stated that the workshop would be open to the public, but would not be televised. Council Member Best stressed the importance of the Council setting future goals and objectives. A discussion ensued, and it was determined the meeting would be held as planned. Mayor Rhodes stated that she did not have a report and called for Council concerns and reports. Council Member Martin requested a status report on the potential litigation concerning the golf course contracts. Mayor Pro Tem Member Longoria stated that the City would be the host for the upcoming Texas Municipal League Region 11 meeting on May 21, 1993 at the Texas State Aquarium. She stated that information regarding the meeting would be provided to the Council. Mrs. Longoria also referred to the upcoming reception for Governor Cavazos of Tamaulipas, Mexico. Several council members stated they would attend. Mrs. Longoria then referred to the meeting by the policy committee formed to address mobile phone and travel expenses of Council Members. She stated that the committee addressed Council Member Best's request concerning the sign, "Is this request in the public interest?" and the removal of the blue metal fence in front of the Council Members. She stated that it was the committee's opinion that the fence should remain and that the sign would be placed on the podium in the Council Chamber. Mrs. Longoria further stated that the next meeting of the policy committee was scheduled for June of 1993. There was no opposition to the committee's recommendations. Council Member Best referred to his previous request for an examination of the necessity for a travel signal at the intersection of Nile and Pharaoh Drives. Dr. Best then commented highly on the new signs displaying the Council Member's districts in the Council Chamber. Council Member Cooper requested a list of the City Boards and Commission which must comply with the Texas Open Meetings Act and the requirements for posting notices. City Manager Garza stated that all City Boards and Commissions were subject to the Act. He further stated that staff would provide a list of the corporations which were not subject to the Act. Minutes Regular Co“..cil Meeting May 11, 1993 Page 24 Council Member Noyola requested staff to investigate a hazardous street condition on Gaviota Street, and poor maintenance of an apartment complex on Greenwood Drive. Council Member McNichols requested that the Corpus Christi Area Economic Development Corporation provide a detailed itinerary concerning the upcoming Washington D. C. trip concerning the Choke Canyon debt negotiations. Mayor Rhodes called for petitions from the audience. Mr. Ken Bourassa, 1014 Herndon, referred to his previous request for a beach permit and letters he presented to the Mayor in support of permitting his facility. City Manager Garza gave an update wherein he had visited Mr. Bourassa's facility and pointed out the areas which were not in compliance with City codes. Council Member Galindo stated that Mr. Bourassa was requesting beach access which was a separate issue from the issue of his business. City Manager Garza replied that this aspect had been reviewed also. Mr. Ron Hudson, 3556 Austin, discussed the posting of notices on the City bulletin board. Mr. Hudson suggested that the City's Boards and Commission present a report to the Council on a periodic basis. Mr. Hudson suggested that winter averaging encompass all entities utilizing the City's sewer system, and opposed the winter averaging rate increases. There being no further business to come before the Council, Mayor Rhodes declared the Council Meeting adjourned at 9:12 p.m. on May 11, 1993.