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HomeMy WebLinkAboutMinutes City Council - 06/01/1993I HEREBY CERTIFY that the foregoing is a true and correct copy of the Minutes of the City Council Meeting of the City of Corpus Christi of June 1, 1993, which were approved by the City Council on June 8, 1993. WITNESSETH MY HAND AND SEAL, this the 1 lth day of June, 1993. SEAL (GG��/ _AL' mando Chapa City Secretary MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting June 1, 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 David Noyola Acting City Manager Bill Hennings City Attorney James R. Bray, Jr. City Secretary Armando Chapa ABSENT Clif Moss Mayor Rhodes called the meeting to order in the Council Chamber of City Hall. The invocation was delivered by Council Member Galindo, following which the Pledge of Allegiance to the Flag of the United States was led by Council Member Noyola. 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 25, 1993, and there being no corrections, she proclaimed them approved as presented. f f i i i t t t t t t f f Mayor Rhodes announced that Mr. Loyd Neal, Chairman of the South Texas Joint Military Task Force, would give an update on the Base Closure Commission hearing scheduled for June 6, 1993. Mr. Neal reviewed the progress of the preparations for the hearing and local organizations planning to participate in the activities. Minutes Regular Co. .:il Meeting June 1, 1993 Page 2 Council Member Noyola inquired whether the local radio stations could provide coverage of promotional activities, and Mr. Neal discussed participation of the local media. Mayor Rhodes announced the discussion on Item 1, resolution opposing the proposed BTU tax. Mr. David Lamp, Koch Refinery Company, and Mr. Jonathan Moon, American Chrome and Chemical, reviewed the detrimental effects the tax would have on the local economy and requested the Council to support the opposition of the tax. Council Member McNichols stated opposition to the tax and stated that a revenue generating mechanism distributed uniformly among all sectors of the economy would be better than concentrating on one sector as in the BTU tax. Mayor Rhodes commented that she planned to send a letter in opposition to the BTU tax and urged the Council Members to do the same. Responding to Council Member Martin, Mr. Gary Bushell, Corpus Christi Bay Area Economic Development Corporation (EDC), discussed the EDC's proposed resolution opposing the tax. Mayor Rhodes called for further comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 1. RESOLUTION NO. 021664 Resolution opposing proposed BTU tax. The foregoing resolution passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, and Noyola voting "Aye"; Moss absent. ** Y Y Y i i i i Y Y t t Mayor Rhodes referred to the Board & Committee appointments and the following appointees were made by the Council. Civil Service Board/Commission Rev. Harry Williams Sandra Watts Housing Authority Augustin Rivera, Jr. Minutes Regular Co, it Meeting June 1, 1993 Page 3 Park & Recreation Advisory Committee Annie Jean Castro Mayor Rhodes called for consideration from the Regular Agenda. Mayor Rhodes announced the workshop on Item 2, discussion of Utility Financing. Mr. Bill Hennings, Group Manager, Public Works and Utilities, stated that the day's workshop would address alternative funding for capital projects in lieu of the sale of the City's natural gas distribution system and potential uses for funds from the sale of the gas system. Mr. Jorge Garza, Group Manager, Administrative Services, reviewed the advantages and disadvantages of the alternative funding options. He stated the options included the sale of revenue bonds, general obligations bonds, utilization of sales tax and possibly Choke Canyon funding sources. Mayor Rhodes pointed out that funds from the sale of the gas system would not provide all the funds needed for the capital improvements projects in the City. Firstly, Mr. Garza discussed funding utility capital projects through revenue bonds. Council Member McNichols expressed concern that the option for the $3.2 million to service the debt on $37 million in additional revenue bonds would fund short term projects and not the long term projects. He also inquired about the interest rate on revenue bonds. Mr. Garza explained. Mayor Rhodes suggested that staff address ways to acquire the funds needed for the entire Capital Improvement program without the funds from the sale of the gas system. Mr. Garza referred to the use of the one-half cent sales tax which could provide these funds. Responding to Council Member Cooper, Mr. Garza stated that the proposed six percent utility rate increases would be across the board and further discussed the Charter rate cap relating to utility rate increases. Council Member Martin pointed out that an authorization from the Council for utility rate increases above the Charter cap would be effective one year and could not authorize the sale of bonds. Further, Mr. Martin inquired whether the revenue bonds would ultimately cost the City $64 million. Mr. Garza replied in the affirmative. Responding further, Mr. Garza stated that a one time six percent rate increase would provide adequate funds to pay the debt service on a $37 million revenue bond sale. Mr. Martin then requested a copy of the relevant debt service schedule. Next, Mr. Martin requested a list of the "Pay As You Go" capital projects which would be deferred equalling the $3.2 million, and Mr. Garza replied he would provide the Council with the list. Mr. Martin then Minutes Regular Co. ail Meeting June 1, 1993 Page 4 suggested that the Choke Canyon debt be included on the Summary of Debt Requirements by Years calculations along with the Nueces River Authority debt. Mr. Martin expressed concern that the six percent utility rate increases would not suffice if the Choke Canyon debt were included. Mr. Garza discussed the effects of the inclusion. Mr. Martin stated that it would probably take a combination of some or all the funding alternatives in order to fund all the projects. Responding to Council Member Martin, Mr. Garza stated that the sale of revenue bonds could be performed without voter approval, but due to the amount, he would recommend voter approval. Secondly, Mr. Garza discussed funding utility capital projects through general obligation bonds. Pursuant to this alternative, Council Member Martin inquired about the application of the Charter tax cap, and City Attorney Bray stated that the Charter provided that the maximum tax rate the Council could levy in support of tax supported obligations would be limited to the constitutional limit. Council Member McNichols expressed concern about a large property tax increase. He further expressed concern about limiting the City's capacity to fund other necessary projects not possessing alternative funding sources, such as major street and park and recreation projects. Responding to Council Member Cooper, Mr. Garza discussed the total property tax increase necessary to cover this option as well as the increase in the budget. Mrs. Cooper expressed concern about the amount of the increase. Council Member Martin inquired whether this alternative would be in lieu of the utility rate increases this year, and Mr. Hennings replied in the affirmative. Mr. Martin then discussed the possibility of paying revenue bond debt through the sale of general obligation bonds and stated that this option appeared to be the most economical. Thirdly, Mr. Garza discussed funding utility capital projects through a one-half cent sales tax. Council Member Galindo referred to the sales tax utilized by the Regional Transportation Authority (RTA), and suggested that the RTA tax be reduced if the City tax were increased. A brief discussion ensued. Council Member Noyola requested a copy of the state law pertaining to the Regional Transportation Authority. Mr. Garza responded to several inquiries about the use of the sales tax posed by Council Member Cooper. Council Member McNichols expressed concern about the volatile nature of the sales tax, and inquired about past fluctuations. Mr. Hennings referred to the Summary of Revenue Accounts recently distributed to the Council and discussed the amounts. Further, Minutes Regular Co. .;il Meeting June 1, 1993 Page 5 Dr. McNichols expressed concern that utilization of the sales tax in this manner would reduce funds for other important needs in the community. Council Member Martin inquired whether permission from the relevant entities involved in the Garwood and Lake Texana Water Supply projects would be required for use of the sales tax, and Mr. Garza replied in the affirmative. Council Member Noyola stressed the importance of presenting to the Council options for funding the entire amount needed for the capital improvements projects. In conclusion, Mr. Garza discussed possible utilization of funds reserved for the Choke Canyon debt. Responding to Council Member McNichols, Mr. James Dodson, Regional Water Director, discussed the current remaining debt service and possible debt restructuring for the Choke Canyon project. Next, Mr. Hennings referred to charts depicting the utility capital needs over the next two years in relationship to the use of the $37 million from the sale of the gas system. He stated these charts included acquisition of new water supplies and expansion of wastewater treatment capacity. Responding to Council Member Best, Mr. Hennings discussed the proposed improvements for Corpus Christi State University (CCSU). In response to Council Members, Mr. Hennings discussed recent actions concerning the Allison treatment plant. A brief discussion developed concerning the proposed alternate emergency power supply project. Mr. Hennings further discussed the necessity for filters rehabilitation, bar screen replacements, and chemical feed systems upgrade at the Stevens plant, and proposed water distribution system monitors. Responding to Council Member Cooper, Mr. Hennings discussed penalties for non- compliance of the Safe Drinking Water Act. In response to Council Member Martin about the Northwest Area Water Distribution project, Ms. Grace McNett, Capital Budget Officer, replied that the project was presently funded and under design. Council Member Best inquired about the purpose of the Allison Effluent Return Flows Pilot Project, and Mr. Hennings explained. Council Member McNichols stressed the importance of the pilot project. Next, Mr. Hennings discussed the proposed utility relocations, mandates to upgrade the Greenwood and Allison Treatment Plants, the Horne Road & Houston Street trunk Minutes Regular Co. .;il Meeting June 1, 1993 Page 6 rehabilitation, and the Laguna Madre Sludge Facility/Collection System rehabilitation projects. Council Member Martin inquired about the deadlines for the wastewater treatment plant expansions, and Mr. Hennings discussed the deadlines. Further, Mr. Martin inquired about the next available election date for selling revenue or general obligation bonds, and City Attorney Bray replied the next available date would be November, 1993. Then, Mr. Martin referred to the upcoming Council approval of the sale of the gas system and requested that staff devise a package containing long and short term capital improvement projects and the alternative funding sources available. He stated that the Council could then consider this package for a possible November election. He also stressed the importance of educating the community on the capital improvement project needs. Responding to Council Member McNichols, Mr. Hennings discussed the upcoming presentation to the Texas Water Commission concerning the Greenwood Drive treatment plant expansion. Council Member Cooper agreed with Council Member Martin about adequately educating the public concerning the utility capital needs in the City. Next, Mr. Hennings discussed the Lake Texana option for alternative water sources. Council Member Martin referred to the additional annual payments in the "take or pay" option, and expressed concern about selling revenue bonds in the water system because of the demand of future water supplies. He further requested a report on the relevant economic calculations which would promote immediate usage of the Lake Texana water. Mr. Martin then stated that many people believe, if the water releases were stopped, ample water for the future would be available. He also expressed concern that a bond program might include the $90 million funds for conveyance of the Lake Texana water supply. He stated that under these conditions the program could fail. Mr. Martin then stressed the importance of completing the present studies concerning water issues. Further, he stated that he did support purchasing the options to protect the City's future water sources, but did not support the $90 million for the immediate conveyance of the water. Mr. Martin then suggested that the list of proposed utility capital projects be extended to encompass the next five years. Council Member McNichols stressed the importance of examining both short and long term water projects. He then discussed a combined alternative to fund the capital improvement projects which includes the possible sale of a major asset (i.e. gas system), water and wastewater rate increases, revenue or general obligation bonds, and a sales tax increase. A discussion ensued concerning funds for the Lake Texana water supply, and Mr. Hennings referred to the upcoming presentation to the Council on the Trans Texas Water Study. Next, Mr. Hennings discussed the provisions in the Garwood Irrigation District option. Minutes Regular Co, June 1, 1993 Page 7 .;il Meeting Responding to Council Member Best, Mr. Dodson discussed future high and low water supply demand scenarios for the area. Next, Council Member Best suggested that the Council consider other assets (beach land, Frost Brothers building, etc.) owned by the City to raise funds in lieu of the sale of the gas system. Council Member Martin discussed the opening of Choke Canyon and stressed the importance of planning for future water supplies. Responding to Mayor Rhodes, Mr. Dodson discussed the process to acquire water through the Garwood option. Further, Mr. Hennings discussed the proposed expansion of the wastewater treatment capacity. Mr. Hennings also discussed the effluent return study and the federal mandates of the Texas Water Commission to upgrade permits to 10/15. Responding to Council Member Galindo, Mr. Hennings discussed the projects which dealt with infrastructure improvements in the City. A broad discussion developed on the importance of obtaining a long term water supply for the community. Mayor Rhodes called a five minutes recess. Mayor Rhodes reconvened the Regular Council Meeting and opened the discussion on Item 3, amending Section 55-100 of the Code of Ordinances, City of Corpus Christi to provide certain changes in wastewater rates; adopting a winter averaging rate design system for one family residences effective June 11, 1993. The Council viewed a short video explaining the wastewater winter averaging program. Through the use of charts, Mr. Hennings discussed the proposed public information program and the effects of winter averaging on consumers. Council Member Martin requested that staff examine the minimum and maximum winter averaging extremes before the second reading of the ordinance, and discussed a possible rate cap on the increases and decreases of more than twenty five percent. Council Member Martin then inquired about the winter averaging base figures, and Mr. Hennings discussed these base figures. Mr. Martin pointed out that 1993-1994 figures did not include a rate increase, and therefore, the winter average charges would not be subject to an increase. Responding further, Mr. Hennings discussed the winter averaging calculation for new customers. Next, Mr. Martin discussed and inquired about the date the winter average billing would begin. City Attorney Bray discussed the effective date which would provide notice to consumers. Minutes Regular Co, it Meeting June 1, 1993 Page 8 Mr. Hennings then referred to a map depicting the billing changes due to the winter averaging program, and stated that the changes would be customer specific. Responding to Mayor Rhodes, Mr. Hennings stated that the meters would be read on an annual basis to obtain the winter averaging rates. Council Member Martin discussed the development of the winter averaging program and stressed the importance of establishing a means for consumers to inquire about the program. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 3. FIRST READING ORDINANCE Amending Section 55-100 of the Code of Ordinances, City of Corpus Christi to provide certain changes in wastewater rates; adopting a winter averaging rate design system for one family residences effective June 11, 1993. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, and Noyola voting "Aye'; Moss absent. Mayor Rhodes opened the discussion on Item 4, agreement with Information Builder's Inc. to: (1) purchase a FOCUS mainframe software license for $91,911; and (2) provide training for $35,000. Mr. Hennings reviewed the advantages of the FOCUS software. Mr. John Bacon, Director of Municipal Information Systems, explained the various applications of the FOCUS software. Council Member Galindo inquired about the funds previously appropriated for a new computer. Mr. Hennings explained the effect of appropriated funds which are not expended as in this matter. Mr. Galindo expressed concern about utilizing the City's lease line of credit for this purchase instead of an outright purchase. Mr. Bacon pointed out the advantages of utilizing the lease line of credit for this item. In response to Council Members, Mr. Bacon responded to several questions about the purchase and the operations of the MIS Department. Council Member Martin referred to Mr. Bacon's comments that the software trial initiated by the users would improve job performance. Next, Mr. Martin inquired whether utilization of the software would eliminate stand alone systems in the City, and Mr. Bacon replied the he did not feel it would. Lastly, Mr. Martin commented that he supported the item, but agreed with Council Member Galindo that the City's lease line of credit should Minutes Regular Co, it Meeting June 1, 1993 Page 9 not be utilized for day-to-day operations. Mr. Martin suggested an outright purchase. Mr. Hennings replied that alternative funding would be examined. Mayor Rhodes commented that the item would be withdrawn from consideration at the day's meeting to obtain further information. 4. WITHDRAWN $91,911; and (2) provide training for $35,000. The total amount of $126,911 will be financed through the City's lease line of credit. The agreement also provides for $20,382 beginning in year two. Mayor Rhodes opened the discussion on Item 5, approval of motions authorizing two Intergovernmental Agreements between the City of Corpus Christi and Nueces County. Mr. Tom Utter, Group Manager, Development Services, explained the provisions in the agreements and commented favorably on the results of the recent beach cleaning. Responding to Council Member Galindo, Mr. Utter explained the costs and exchange of services between the City and County. Council Member Galindo inquired whether trading the equipment for services was appropriate, and City Attorney Bray explained the applicable law which deemed the process appropriate. Council Member Noyola commended County Commissioner Carol Karter for her work in the community and inquired about contacting Kleberg County about the unclean conditions on their beaches. A brief discussion ensued, and Mr. Utter discussed the recent actions concerning this matter. Responding to Council Members, Mr. Utter discussed the costs of past contracts and payment thereof. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 5. M93-165 Approval of Motions authorizing two Intergovernmental Agreements between the City of Corpus Christi and Nueces County as follows: a. Motion authorizing the City Manager or his designee to execute an Agreement providing for Nueces County to adequately clean and maintain that portion of the beach at Padre Island within the City limits and to provide lifeguards, portable restrooms, and trash receptacles for the period of August 1, 1992 to July 31, 1993, in an amount not to exceed $100,000. Minutes Regular Co June 1, 1993 Page 10 b. iil Meeting Motion authorizing the City Manager or his designee to execute an Agreement providing for Nueces County to pay the City of Corpus Christi for outside City limits emergency medical service calls in Nueces County as the City provides services on an as available basis for the period from August 1, 1992 to July 31, 1993, and to pay the City $93,568 for services rendered in fiscal years 1991 and 1992. The foregoing motions passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, and Noyola voting "Aye"; Moss absent. * * * * * * * * * * * * * The Council went into closed session pursuant to Article 6252-17, Sec. 2(e), V.A.C.S., regarding claims for mitigation and damages arising from construction of the Oleander Point Sailboarding Facility and alleged violations of U. S. Corps of Engineers Permit 18619 and State of Texas Lease on Coastal Public Lands No. CL 89001. The Council returned from closed session. Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 6 through 14, and Council Members requested that Item 12 be withheld for discussion. City Secretary Chapa polled the Council for their votes as follows: 6. M93-167 Motion authorizing the City Manager or his designee to apply for continued financial assistance through the Texas Parks & Wildlife Department for beach cleaning at Padre Island and to execute all necessary documents. The foregoing motion passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, and Noyola voting "Aye"; Moss absent. 7. M93-168 Motion approving the purchase of one motor grader in the amount of $72,976, and one tandem roller in the amount of $39,473, in accordance with Bid Invitation No. BI -0197-93, from Waukesha -Pearce Industries, Corpus Christi, TX based on low bid. Total award is $112,449. The equipment will be used by the Street Services Department and was budgeted in the 1992-93 capital outlay as replacement equipment. The foregoing motion passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, and Noyola voting "Aye"; Moss absent. Minutes Regular Co June 1, 1993 Page 11 til Meeting 8. M93-169 Motion awarding a contract in the amount of $353,000 to R.S. Black Engineers and Contractors/Machinery and Materials, Inc. to install a new sludge de -watering filter belt press at the Oso Water Reclamation Plant. The foregoing motion passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, and Noyola voting "Aye"; Moss absent. 9. M93-170 Motion awarding a contract in the amount of $42,520 to Backhoe Lease Service, Inc. to construct a culvert to replace an existing bridge on Rehfeld Road. The foregoing motion passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, and Noyola voting "Aye"; Moss absent. 10. M93-171 Motion awarding a contract in the amount of $210,000 to King -Isles, Inc. to remove a well pad and access road in the Laguna Madre. The foregoing motion passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, and Noyola voting "Aye"; Moss absent. 11. M93-172 Motion appointing the City Council Members as members of the Boards of Directors of the following Corporations: Corpus Christi Housing Finance Corporation (CCHFC) Corpus Christi Industrial Development Corporation (CCIDC) Corpus Christi Health Facilities Development Corporation (CCHFDC) The foregoing motion passed by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, and Noyola voting "Aye"; Moss absent. 13. ORDINANCE NO. 021665 Amending the Code of Ordinances, Chapter 53, Traffic, Section 53-255, Schedule VI, Decrease of State Law Maximum Speed, by lowering the speed limit from 30 MPH to 20 MPH both No. Shoreline Boulevard, between Pearl Street and Coastal Avenue, and E. Surfside Boulevard, between Pearl Street and the south terminus of E. Surfside Boulevard. Minutes Regular Co. ,i1 Meeting June 1, 1993 Page 12 The foregoing ordinance passed on second reading by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, and Noyola voting "Aye"; Moss absent. 14. ORDINANCE NO. 021666 Amending the Code of Ordinances, Chapter 55, Utilities; repealing all provisions of Article XI, Sections 55-140 to 55-147, Commercial and Industrial Waste Disposal and Pretreatment by adoption of a new U.S. Environmental Protection Agency reviewed and approved Commercial and Industrial Waste Disposal and Pretreatment ordinance, Article XI, Sections 55-140 to 55-147; excepting Section 55-146, Abnormal Sewage Surcharge, under Ordinance No. 20895; providing a savings clause; repealing all ordinances in conflict; providing for publication. The foregoing ordinance passed on second reading by the following vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, McNichols, and Noyola voting "Aye"; Moss absent. Pursuant to Item 12, granting to TCI Cablevision of Texas, Inc. an amendment to the cable television franchise, Council Member Galindo expressed concern about the City foregoing its television franchise fee within the Corpus Christi Naval Air Station. Responding to Mayor Rhodes, City Attorney Bray explained provisions of the cable franchise fees. Council Member Martin expressed concern about the effect the agreement would have on the current activities at the base, and suggested withdrawing the item from consideration at this time. Mayor Rhodes announced that the item would be withdrawn from consideration at the day's meeting. 12. WITHDRAWN s s s s s s s s s s a s Mayor Rhodes called for the City Manager's report, and Mr. Hennings stated that he did not have a report. Mayor Rhodes called for Council concerns and reports. Council Member Martin expressed concern about closing the Flour Bluff and Northwest Utility Collection Stations. Minutes Regular Co :il Meeting June 1, 1993 Page 13 Mrs. Rosie Vela, Director of Finance, referred to Council Members Longoria and McNichols concurrence, and explained the changes in the collection process which reduced the usage of these facilities. Council Member Longoria commented that the H.E.B. grocery stores accepted utility payments, and that traffic at the collection station in the northwest area interfered with the traffic at the library. Mrs. Vela also referred to the new contracts with entities in the same area which could accept utility payments. Council Member Best discussed several options concerning the smoking ordinance. Council Member Cooper referred to a hazardous condition at the intersection of Timbergate Drive and Staples Street and flooding conditions on other streets located in the same area, and requested an examination. She also referred to her previous request for information concerning the flooding in her district. Council Member Galindo referred to the cancellation of the upcoming scheduled council meetings, and no one voiced opposition. Mayor Rhodes called for petitions from the audience, and there were none. There being no further business to come before the Council, Mayor Rhodes declared the Council Meeting adjourned at 6:50 p.m. on June 1, 1993. The Council then proceeded with Items 15, 16, 17, and 18 annual meetings of the Corpus Christi Community Improvement Corporation, the Corpus Christi Health Facilities Development Corporation, the Corpus Christi Housing Finance Corporation, and the Corpus Christi Industrial Development Corporation. * * * * * * * * * * * * *