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HomeMy WebLinkAboutMinutes City Council - 05/10/1994I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Regular Council Meeting of the City of Corpus Christi of May 10, 1994, which were approved by the City Council on May 17, 1994. WITNESSETH MY HAND AND SEAL, this 18th dar--May, 1994. SEAL Armando Chapa City Secretary MICROFILMED MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting May 10, 1994 2 p.m. PRESENT Mayor Mary Rhodes Mayor Pro Tem Melody Cooper Council Members: Jack Best Cezar Galindo Betty Jean Longoria Edward Martin Dr. David McNichols David Noyola ABSENT Clif Moss City Manager Juan Garza City Attorney James R. Bray, Jr. City Secretary Armando Chapa Mayor Rhodes called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Mr. Lewis Lovelace, following which the Pledge of Allegiance to the Flag of the United States was led by Council Member Longoria. Assistant City Secretary Saundra Koenning 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 3, 1994, and there being no corrections, she proclaimed them approved as presented. Mayor Rhodes opened discussion on the Special Consideration Item regarding Regional Water Supply Issues. Minutes Regular Council Meeting May 10, 1994 Page 2 City Manager ,i1 'an Garza explained that several speakers would give presentations on various aspects of the regional water supply issue to inform the public and to explain why the city entered into contracts with the Lavaca-Navidad River Authority (LNRA) and the Garwood Irrigation Company. He noted that projections indicate that during approximately 2002 the region's water demand will exceed the dependable water supply. He said that does not mean the region will run out of water in 2002; rather, it means the supply will be undependable. He added that because of the uncertainty of conditions such as droughts, water planning must be done years and decades in advance. Mr. Garza introduced Mr. Tom Brown, Deputy Executive Administrator of the Texas Water Development Board which, he explained, was created by the Texas Legislature in 1957. The board developed a state-wide water plan which was mandated by the Texas Water Code. He said one of the cornerstones of the planning process was to take into account the drought of record --the worst drought that has occurred on record which has a probability of recurring. He presented several graphs illustrating projected water use. Mr. Ken Choffel, P.E., of HDR Engineering Inc. gave a presentation on aspects of the regional water supply planning studies which had been conducted, including the Trans -Texas Study. He said the study was sponsored in part by the Texas Water Development Board for the Corpus Christi, Houston and San Antonio areas. He said the basis of the study consisted of determining the following factors: future water needs in each area with conservation, existing water supplies during a drought; shortages that existed, and available alternatives to meet the shortages. He explained that the Trans - Texas Study identified 16 alternatives available to the city; the LNRA and Garwood options were two of those alternatives. Through maps and graphs, he illustrated the regional water supply demands, noting that the City of Corpus Christi is responsible for providing water to 22 different cities, seven water -supply corporations, five very large industries and several smaller industries, and three naval air stations. Mr. Choffel also explained in detail the 16 alternatives that were available to the city, taking into consideration cost, impact on the environment and feasibility and applicability to this area. Mr. James Dodson, Regional Water Director, discussed the issue of Corpus Christi as a regional water provider. He explained that the Choke Canyon/Lake Corpus Christi system has a service area encompassing 12 counties and a current population of approximately 380,000 people. The City of Corpus Christi is unique from other Texas cities because it owns the majority of the water rights in the Nueces River Basin and, with that ownership, the city has an obligation not just to its own citizens but to the citizens of the entire area. Mr. Dodson added that since the city has constructed the major water facilities in the Nueces River Basin and sells water to many other entities, the city's obligations and responsibilities to the region's water needs are far-reaching. He noted that the city's water customers are paying their share of the cost of obtaining new water sources for the region. Mr. Dodson also presented graphs depicting rate costs and water usage. Minutes Regular Council Meeting May 10, 1994 Page 3 Mr. Dodson stated that during the May 17, 1994 meeting, the staff would ask the Council to approve an amendment to a contract with LNRA for funding of Phase II of the Trans -Texas Water Study. He said the city had been approved for a grant of $600,000 from the Texas Water Development Board (TWDB) to help fund the study. In addition, he said the Port Authority agreed to underwrite an interest-free loan from the TWDB for $211,800. Mayor Rhodes recognized Mr. Joe Fulton, chairman of the Port Authority. Mr. John Michael, P.E., of Naismith Engineering Inc., discussed in detail the issue of desalination --engineering, environmental and economic considerations. He said the city has studied this issue since the 1960s and that the technology, with some exceptions, has basically remained unchanged --it is still used primarily as an alternative to fresh water resources. Using charts, he pointed out that desalination is energy -intensive and extremely costly, except in the Middle East, where potable water is scarce and energy is readily available. Mr. Michael outlined how desalination is used in other parts of the country, noting that many current methods now in use are not applicable to this region. Responding to a question from Council Member McNichols, Mr. Michael said that the current cost of untreated water in Corpus Christi is approximately 64 cents per 1,000 gallons and, under the best conditions, the cost of desalinating raw seawater would be a minimum of $6.00 per 1,000 gallons. Mr. Mike Carrell, Chairman of the Corpus Christi Bay Area Economic Development Corporation, gave a presentation on the importance of a dependable water supply on the local economy. He said the city's ability to attract new businesses is severely limited without assurance of an adequate water supply. He highlighted the affects of both the 1984 drought and the area's water future on industry, tourism, construction, and the university and military communities. Mayor Rhodes recessed the Council Meeting for a short break. Mayor Rhodes reconvened the Council Meeting and asked City Attorney James Bray to explain the legalities of the Lake Texana and Garwood water contracts. He elaborated on several elements of the two contracts, including the fact that the City Council approved the contract with the Lavaca-Navidad River Authority, which owns Lake Texana near Edna, Texas, upon Mr. Bray's legal advice and that the Council had the authority to do so. He explained that the second contract was an option contract with the Garwood Irrigation Company for water rights in the Colorado River. Mr. Bray added that the two contracts are connected in that Lake Texana is expected to provide storage for water that the city purchases from Garwood. Minutes Regular Council Meeting May 10, 1994 Page 4 Mr. Bray also disr'issed the recent ruling by a judge, who said that the LNRA contract was not valid without an election. The ruling was issued in a lawsuit filed by the LNRA to validate a number of its obligations pertaining to Lake Texana, including the city's contract. The LNRA has appealed that decision and both the river authority's counsel and Mr. Bray said they feel the likelihood is good for a reversal of the lower court's decision. He said he expects the Court of Appeals to make a decision on the issue near the end of 1994. If there were an appeal to the Supreme Court, the earliest final resolution would be spring to early summer of 1995. Mr. Bray said the LNRA has advised the city of its intent to honor the contract during the appeal, and it has urged the city not to call an election until after the legal proceedings have been concluded. He noted that the following factors should be considered: the appeal has superseded the lower court ruling, which is not effective until it has been upheld on appeal; the lower court decision presents no grounds for the city to terminate the LNRA contract; if the contract is declared valid by the appellate courts, it will bind the city, regardless of the outcome of an election; if the LNRA were to receive another offer for the water during the appeal and the City of Corpus Christi had not joined in the appeal, LNRA could dismiss the appeal and accept the other city's offer. City Manager Garza recommended that the Council call an election on the water issue when a final court determination is made, and that the Council should direct staff to attempt to negotiate a new contract with LNRA which ensures the city's rights to the water until the legal uncertainties are resolved. He further recommended that the city take no action to intervene in the appeal. Mayor Rhodes asked if a newly negotiated contract with LNRA would also be in dispute. Mr. Garza said that the new contract would be an option contract. In response to another question from the Mayor, Mr. Bray agreed that joining in the LNRA appeal should ensure the city's water rights and would be simpler than negotiating a new option contract. Responding to Council Member Noyola, Mr. Bray stated that the appeal could cost approximately $15,000 to $20,000, and that there is a strong likelihood the lower court decision would be reversed. After receiving verification from Mr. Bray, Council Member Cooper emphasized that even if a referendum on the LNRA contract failed and the appellate court validates the contract, then the contract would still be binding and payments on the contract would come due. In response to a question from Council Member Best, Mr. Bray stated that it was Mr. Garza's recommendation not to join in the LNRA appeal unless directed to by the Council, and it was Mr. Bray's recommendation to intervene in the appeal for the purpose of preserving the city's right to the water. Minutes Regular Council Meeting May 10, 1994 Page 5 Before opening the public hearing on the water issue, Mayor Rhodes introduced the last speaker, Dr. F. Michael Speed, who said that a serious drought is inevitable and an adequate water supply is essential for the community's growth. He encouraged the City to consider several water -supply options, and to wait until the legal issues are settled before calling an election. Mayor Rhodes opened the public hearing. Senator Carlos Truan, D -Corpus Christi, commended the Council for holding the public hearing and urged them to refrain from making any long-term commitments regarding water rights. He supported a referendum on the issue and said it was important to inform the public of all of the water options. Responding to a question from Mayor Rhodes, Mr. Bray stated that the LNRA contract may be terminated by the city, among other things, if it becomes illegal or impossible for the city to take the water as a result of the issuance of a final order by any court when all appeals have been concluded. Following questions from Council Members Best and Galindo about what alternative water supply the senator judged to be best, Senator Truan stated that the citizens should be allowed to make that decision after being provided with the different options. He also questioned whether the Council exceeded its authority as stated in the City Charter with regard to the LNRA contract. Council Member McNichols stated that the LNRA and Garwood options were selected after years of research and consideration by staff and many people from a wide variety of backgrounds, and they offered the most economical solution to the need for a long-term water supply. Council Member Noyola stated that he agreed with Senator Truan on the need for a referendum. Responding to a question from Council Member Longoria, Senator Truan stated that if a referendum election were held on the LNRA contract, he would consider the plan but stated that there is a large indebtedness associated with it. Mr. Jesse Hix, 2622 Segrest, asked if the monies needed to buy the water from Lake Texana would raise the city's water utility over the 6% cap, and Dr. McNichols responded that the rates would rise but not above the 6% cap. Mr. Lewis Lovelace, 1549 Casa Grande, stated that an election on the water issue should be called as soon as possible. Minutes Regular Council Meeting May 10, 1994 Page 6 Mr. A.H. Meinrath 101 N. Upper Broadway, stated that he was made Chairman of the Subcommittee on Water Users and Demand Projection of the Mayor's Committee on the Development of Long -Term Water Supplies, which consisted of citizens from many professions. He said they based their recommendations on their professional expertise and contributed to the studies presented to the Council. Mr. Clyde Allen, 722 W. Lee in Kingsville and President of the South Texas Water Authority, reminded the Council that the issue before them is a regional one. He stated his support for a secure water supply for the whole Coastal Bend area. Mr. Earl Hoppenrath, 410 Indiana, stated that he agreed with Senator Truan's comments, particularly regarding the election. Ms. Marie Speer, 909 Red Start Circle, emphasized the importance of water conservation, monitoring water releases into the bay, and dealing with the problem of sedimentation in Lake Corpus Christi. She also stated that a desalination plant would be used only as a backup to fresh water resources. Mr. R.F. Hasker, 1813 Wallace Ave., referred to an editorial in the May 10, 1994, issue of the Corpus Christi Caller -Times about the day's open meeting on the water issue. He also stated that the LNRA contract violated the city charter, and said that industry should pay more for their water use. Mayor Rhodes responded to Mr. Hasker's comments, saying that even though the day's open meeting was a legal risk for the city, more open meetings on sensitive legal issues would be held in the future because it was important for the citizens to be informed. Mr. Bill Myers, 2838 Coleman Ave., stated that the contract violates the city charter. He said that Mr. Bray made a comment that opponents to the LNRA contract are reading the charter amendment on public utilities politically and not legally. Mr. Bray denied making such a statement, and said that the city staffs interpretation of the charter's utilities provision was that it does not apply to water. Council Member McNichols, referring to the same utilities provision, asked why water is different from gas and electric, and Mr. Bray explained that water is different in a number of ways. Most importantly, he said water is a limited but renewable resource, is owned by the state, and water resources are uniquely time-consuming to develop and implement. He noted that when that charter provision was written in 1939 the city only had two utilities --water and gas --but that provision specifically failed to mention water. Mr. Alex Gonzalez, 6010 S. Alameda, stated that it was important for the voters to decide how the water issue should be resolved. He also encouraged the dissemination of facts to the public. Minutes Regular Council Meeting May 10, 1994 Page 7 Council Member ralindo asked Mr. Gonzalez to send him a list of his concerns. Responding to a question from Council Member Cooper, Mr. Bray said that the five-year clause in the city charter did not pertain to the water issue. He said the five- year provision is predicated with language that specifically mentions oil, gas and electricity, and other articles. It specifically omits water from the provision. Mrs. Cooper reiterated that the Council entered into the LNRA contract on the advice of the city's legal counsel. Mayor Rhodes stated that the law is always subject to interpretation, adding that the lower court ruling may be upheld or it may be overturned. Dr. Arthur H. Clarke, 325 E. Bayview in Portland, stated that he is a research scientist who studies mollusks and endangered species. He offered his services with regard to environmental concerns and the water issue. Mr. Leon Perez, 904 Buford, stated he agreed with Senator Truan and said the water issue should be decided by the voters. He said desalination was a viable option to consider, and commended Council Member Cooper for a commentary she wrote that was published in the Corpus Christi Caller -Times. Mr. Trian Serbu, 14310 Playa Del Ray, expressed the opinion that the region has the water it needs if stricter conservation methods were employed. He stated that the other issue at hand was a violation of public trust --the water issue must be decided by the voters. He said the voters rejected the quarter -cent sales tax for water and the Council raised the utility rates. He added that the Council will charge citizens separately for the federally mandated storm water utility, and take the approximately $3 million citizens now pay for storm water and use that money for the water supply. Council Member Galindo pointed out that the storm water utility was federally mandated. A discussion ensued between Mr. Serbu and Mr. Galindo regarding this issue. Mr. Con Mims, Executive Director of the Nueces River Authority, commended the city for being in the forefront of the region's water supply development. He said the NRA would be willing to help organize a coalition of water users in the Coastal Bend to facilitate discussion on developing a future water supply. Mayor Rhodes agreed with Mr. Allen's (of the South Texas Water Authority) previous comments that there are many people in this region dependent on Corpus Christi for their water supply and they would have no say in the proposed referendum. Council Member McNichols noted that the city's contracts with water customers throughout the region direct the city to provide an adequate water supply. Minutes Regular Council Meeting May 10, 1994 Page 8 Asked by Council Member Martin to describe his organization, Mr. Mims explained that the NRA is one of the co-owners with the city of the water rights to the Choke Canyon Reservoir and the 21 -member NRA board is appointed by the governor, representing all of the Nueces River Basin and the three coastal counties of Jim Wells, Nueces and San Patricio. The NRA is charged by the Texas Legislature to develop the water resources of this area for the benefit of the public. Mayor Rhodes commended Mr. Mims on his work with the NRA and invited him to develop the concept of a community coalition for water. Dr. McNichols noted that the Nueces River Authority board was consulted before the city entered into the contract with the LNRA. Mr. Chris Grim, 301 Williamson, spoke as a representative of the Wave Riders, a group of professionals who share the sport of surfing and are environmentally concerned. The Wave Riders commended the Council for trying to educate the community about the city's pressing issues, including water. They urged the city to not hold a referendum on the water issue until the appeals process had been resolved. Mr. Joe O'Brien, 4130 Pompano, said that if the LNRA contract were voted down by the voters in a referendum, the city could cancel the contract. He said he felt it was imperative to let the voters decide the issue. Responding to a question from Dr. Best, Mr. Bray repeated that if the courts ultimately upheld the LNRA contract, it would still be valid despite the outcome of an election. A discussion ensued between Dr. McNichols and Mr. O'Brien about funding future water supplies. Mr. PhD Rosenstein, 949 Bobalo, argued that the city charter provision discussed previously does pertain to water, and urged that a referendum be held. Mr. Bob Carey, Chairman of the Corpus Christi Chamber of Commerce, stated that a reliable, long-term water supply is essential to the city's growth and that the Chamber supports the Council's efforts to find one. Ms. Gloria Perez, 1317 7th St., spoke in favor of voter education on the issue and a referendum. Mr. Joe Fulton, 48 Lakeshore Dr. and Chairman of the Port Authority Board, commented that 5%% of the nation's refining capacity is located on the Corpus Christi ship channel, and a dependable water supply is essential in this area. A citizen who worked at Reynolds Metal Company for many years encouraged Minutes Regular Council Meeting May 10, 1994 Page 9 better water conservation efforts among industries. Mrs. Zelma Champion, 1117 Dona, stated that before the day's meeting she had been opposed to the idea of obtaining additional water rights, but changed her mind after the presentations. She encouraged the Council to investigate alternate water sources and to continue to educate the public about the issue. Mr. Rodolfo Gonzalez, a native Corpus Christian, criticized the Council, saying they had forgotten about the taxpayers. Mr. Tom Duran, 3710 Woodstone, praised the Council and staff for their work, particularly on the water issue, and said that citizens have a responsibility to keep abreast of the issues. Dr. Best made a motion to Gose the public hearing, seconded by Mr. Noyola; the motion passed unanimously; Moss absent. Mayor Rhodes called for comments from the Council. Mayor Rhodes acknowledged that it is difficult for citizens to stay informed, and stated that it is the Council's job to obtain as much information as possible to make their decisions and to continually share that information with the public. She refuted any implications that there was a "hidden plot" behind their actions. She stated that there was insufficient time to prepare for an August election, which historically has low voter turnout. Mayor Rhodes made a motion, seconded by Dr. McNichols, that the Council would be on record favoring a referendum on the water issue; the motion passed; Best voting "No"; Moss absent. The mayor stated that the Council needed to determine when was the most prudent time to hold the referendum on water. Council Member Noyola made a motion to hold the referendum on August 13, 1994, seconded by Council Member Martin. Discussion ensued among the Council members about the need to educate the public and the advantages and disadvantages of holding the election on August 13. Responding to Mr. Martin's question, Mr. Bray responded that the dates available for an election are August 13, January 21, 1995 and April 1, 1995, when Council elections would be held. Following the discussion, the vote was taken on Mr. Noyola's motion to hold the Minutes Regular Council Meeting May 10, 1994 Page 10 referendum on August 13. 1994: Martin and Noyola voting "Aye"; Rhodes, Best, Cooper, Galindo, Longoria, and McNichols voting "No"; Moss absent. The motion failed. Dr. Best made a motion that the city intervene on the Lavaca-Navidad River Authority appeal to protect the city's water rights, and to hold the referendum on April 1, 1995. The motion died for lack of a second. Mr. Galindo made a motion to table discussion of the appeal intervention and requested additional information from staff; the motion passed unanimously; Moss absent. Mayor Rhodes called for the City Manager's report and there was none. Mayor Rhodes called for Council concerns and reports. Mr. Martin asked the staff for an update on the status of the landfill. He also requested a status report on the Ethel Eyerly parking lot project. City Manager Garza confirmed that a budget presentation would be made during the regular Council Meeting on May 31, 1994. Mrs. Cooper thanked the Country Club Neighborhood Association for inviting her to speak on May 10, 1994. She expressed her desire to talk with neighborhood organizations and others about a variety of issues. Dr. Best announced that the Consolidation Committee meeting would be held on May 13, 1994, at noon. Scheduled to attend were the County Judge and one County Commissioner, President of the Corpus Christi Independent School Board and a School Board Member. He invited all the City Council members to participate. Dr. McNichols requested information on the next meeting of the Steering Committee on Water. Mr. Garza replied that he would provide that information. 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 7 p.m. on May 10, 1994.