HomeMy WebLinkAboutMinutes City Council - 11/15/1994I 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 November 15, 1994, which
were approved by the City Council on November 22, 1994.
WITNESSETH MY HAND AND SEAL, this 23rd day of November, 1994.
Armando Chapa
City Secretary
SEAL
` ititiaLm moi
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Council Meeting
November 15, 1994
2 p.m.
PRESENT
Mayor Mary Rhodes
Mayor Pro Tem Clif Moss
Council Members:
Dr. Jack Best
Melody Cooper
Cezar Galindo
Betty Jean Longoria
Edward Martin
Dr. David McNichols
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 Chambers of City Hall.
The invocation was delivered by Mr. Keith Wyatt, St. Luke United Methodist
Church, following which the Pledge of Allegiance to the Flag of the United States was led
by Council Member Best.
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 November 1, 1994, and there being no corrections, she proclaimed them approved as
presented.
Mayor Rhodes opened discussion on Item 1, a presentation by CITGO and
Southwestern Refining, recognizing their support of a new youth pilot program.
Mr. Malcolm Matthews, Director of Park and Recreation, explained that CITGO and
Southwestern Refining have donated a total of $8,000 to help establish the Northside
Youth Basketball Program, in conjunction with the staff of the Weed and Seed Program,
city staff and residents of the northside.
•Minutes
Regular Council Meeting
November 15, 1994
Page 2
Mr. Chuck Cazalas, on behalf of CITGO Refining, presented a check to the city for
$4,000 for the pilot program. He said the program is consistent with the company's
efforts in the north bay area.
Mr. Tom Sands also presented a check for $4,000 from Southwestern Refining in
support of the program. He commended Council Member Longoria for her efforts in
helping provide programs for northside residents.
Mayor Rhodes opened discussion on Item 2, a presentation by Patricia Reddick
regarding the Salvation Army Doll Show.
Mrs. Reddick explained that the 8th Annual Doll and Bear Show, sponsored by the
Salvation Army Women's Auxiliary, would be held on November 19 and 20, 1994 at
Heritage Park. She added that the dolls' and bears' elaborate clothes are judged and the
winning entries are auctioned off, while the rest of the dolls and bears are given away to
children on the Salvation Army's distribution list at Christmas.
Mayor Rhodes referred to the Board and Committee appointments on the day's
agenda, and the following appointments were made:
Corpus Christi Bay Area Minority Business Opportunity Program Steering
Committee
Willie Flemmings
Jesus Arroyo Leija
Rodolfo Martinez
Joseph Mendez
Mary Helen Salazar
Manuel Villarreal
Lynda Guajardo
Museum of Science and History
Frank Veltri
Port of Corpus Christi Authority
Joe Fulton
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Regular Council Meeting
November 15, 1994
Page 3
Mayor Rhodes recessed the regular Council meeting for the meeting of the
Workforce Development Executive Committee.
The Mayor reconvened the regular Council meeting.
Mayor Rhodes deviated from the day's agenda and opened the public hearing on
the following zoning case:
9. Case No. 1094-2, Tee One Up, Inc.: A change of zoning from "B-4" General
Business District to "1-2" Light Industrial District on Southbay Annex, Block 2, Lot
A, located on the north side of S. Padre Island Drive, between Southbay and Sea
Breeze Drives.
Mayor Rhodes stated that the Planning Commission and staff recommended denial
of the "1-2" District, and in lieu thereof, approval of a Special Permit for an outside
amusement park subject to eight (8) conditions, which she described.
Mr. Michael Gunning, Senior Planner in the Department of Planning and
Development, showed a video of the subject property, noting that the property currently
contains a miniature golf course. He said the owner is requesting the zoning change in
order to include a go-cart track and bumper boats in the amusement park.
Council Member Martin asked why the site plan was not included in this zoning
application and in recent previous zoning applications. Mr. Gunning replied that specific
site plans did not allow enough flexibility for the applicant. After further discussion, Mr.
Tom Utter, Group Manager for Development Services, stated that a specific site plan
probably should be incorporated into the special conditions of the zoning case being
considered.
Council Member McNichols asked about the configuration of the proposed go-cart
track, and Mr. Gunning replied that part of the track would be elevated somewhat. Dr.
McNichols questioned the effectiveness of the required 10 -foot masonry wall to diminish
noise if the go-cart track neared or exceeded the height of the wall. Responding to Dr.
McNichols, Mr. Gunning added that the Zoning Ordinance prohibits promotional events
from operating past midnight, noting that the owner indicated he would probably close at
11 p.m. on weeknights.
Responding to Mayor Rhodes, Mr. Utter stated that the applicant agreed to
construct the masonry fence prior to operating the go-cart track, and the Mayor said that
would have to be specifically stated in the ordinance.
Mayor Rhodes asked to hear from the applicant, and Mr. Larry Urban, Urban
Engineering, said he was representing the applicant, Mr. H.B. Hinton. Mr. Urban said Mr.
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Regular Council Meeting
November 15, 1994
Page 4
Hinton's miniature golf course and batting cage business has been successful for seven
years. He stated that Mr. Hinton was seeking to expand his business in the same way
that similar small amusement parks have throughout the country, such as a park which
recently received approval and will be located on South Padre Island Drive as well.
Mr. Urban noted that since the subject property is currently zoned "B-4" General
Business District, Mr. Hinton could legally open several different kinds of businesses on
the property, including a bar. Mr. Urban added that Mr. Hinton has met with the
neighbors around his business and discussed their concerns, and is in full agreement with
the stipulations of the proposed special permit.
Mr. Urban then introduced Mr. Rod Larson, an environmental consultant, who
conducted a noise survey on the subject property. He noted that the go-cart noise would
be reduced by placing the 10 -foot masonry fence right around the go-cart track, rather
than at the residential property line. Mr. Larson described various aspects of the noise
study, concluding that the noise that the residents behind the park would hear from the
go-carts would be low-level noise, approximately 40 decibels.
Mr. Larson answered questions from Council members regarding the noise level
that would be generated by the go-carts.
Responding to Mr. Martin, Mr. Urban stated that only a paved parking lot would be
located in the northwest corner of the subject property, with a standard screening fence
separating the parking lot from the residences behind it. Mr. Utter noted that the 10 -foot
fence would be a six-inch cinderblock fence filled with concrete.
In response to Council Member Best, Mr. Gunning explained that the reason the
applicant had to apply for the "1-2" zoning was due to the motorized rides he plans to
have.
Mr. Urban reiterated Mr. Hinton's request that the Council approve the zoning
change.
Mayor Rhodes asked how many people were opposed to the zoning request, and
the following people addressed the Council members.
Mr. Dick Berry, 1109 Harbor Village Dr., said that Mr. Hinton had previously
requested a change of zoning in October 1991 and it was rejected by that Council. He
also questioned Mr. Urban's statement that Mr. Hinton had been sensitive to the
neighbors' concerns.
Mr. Abel Alonzo, 1701 Thames, criticized the proposed zoning change.
Mr. Jerry Wagoner, 1018 Harbor Lights, and President of the Southbay-Harbor
Village Neighborhood Association, described several of the improvements made in the
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Regular Council Meeting
November 15, 1994
Page 5
neighborhood. He said the requested zoning change would lower the value of the homes
there due to increased traffic, noise level and crime. Mr. Wagoner said a petition was
signed by 276 voting -age residents. He added that six or seven police calls were made
to Mr. Hinton's business in the last year.
Mayor Rhodes reminded those opposing the zoning change that with the present
zoning, Mr. Hinton could build a bar on his property that would affect the neighborhood
more than a go-cart track.
A resident of the neighborhood questioned the validity of the noise study
conducted by Mr. Larson, including the decibel configurations and the weather conditions
present when the study was taken.
Mr. Jon Muschenheim, 1002 Sealane Dr., raised the issue of 34 acres of open
land near the subject property, located to the north and east of Southbay Drive. He
asked the Council to reject the zoning proposal, saying that it would adversely affect the
plans of the owner of the 34 acres of land and would be detrimental to the wildlife there.
Mr. Robert Jackson, 1321 Southbay Dr., opposed the zoning change because of
increased traffic and noise in the area.
Mr. Art Olsen, 1310 Southbay Dr., said he and the other residents were
representing a unified community which opposed the plan to have go-carts at the
amusement park. He referred to a previous study which outlined plans for that area, and
urged the Council to reject Mr. Hinton's request.
Mr. Jay Wright, 1126 Harbor Lights, said that occasionally he can hear traffic noise
at his house from South Padre Island Drive, and questioned the amount of noise that
would be generated by the go-carts. He urged the Council to oppose the zoning change,
adding that the new attractions would devalue the residents' properties and lifestyles.
Mr. Raymond Hasker, 1813 Wallace, said that the proposed go-carts would create
excess noise.
Mrs. Julie Terrell, 953 Raven, and publisher of a local family-oriented magazine,
spoke in favor of the zoning change and addressed many of the concerns raised by the
residents. She said she conducted her own research on the issue, saying that
approximately 500 citizens polled were in favor of the proposed additions to the
amusement park. She urged the addition of more family-oriented businesses in the city,
and noted that the police calls previously mentioned were actually reports of vandalism
of Mr. Hinton's property.
It was moved and seconded to close the public hearing, and passed unanimously.
Responding to Mr. Martin, Mr. Larson said that while the noise generated by the
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Regular Council Meeting
November 15, 1994
Page 6
go-carts would be measured twice as loud on a specialized scale, it would only be
perceived as slightly louder than the existing noise.
Mayor Rhodes raised the question of the height of the proposed go-cart track, and
Mr. Urban said that that height would be specified in the plan, but it would not exceed 10
feet.
In response to Dr. McNichols, Mr. Larson acknowledged that the wind speed and
wind direction that were present when he conducted the noise study would have
somewhat impacted the findings, but not by a great amount.
Council Member Galindo commented that zoning cases are sometimes difficult to
vote upon because they affect people personally and there are often many aspects to
consider. He said he supported granting the special permit for the go-cart and bumper
boat use.
Upon verification by staff, Mr. Martin said that similar attractions to the one
proposed are currently in operation, and staff could visit one of them to settle some of the
concerns being raised. He added that a specific site plan would also need to be included
before the plan could be finally considered. Mr. Urban said the applicant would be
agreeable to a specific site plan, and he would recommend a park where staff, Council
members and a representative of the neighborhood could hear for themselves the amount
of noise that is generated by go-carts.
Mayor Rhodes said a vote on the zoning case would be postponed until a future
meeting.
POSTPONED
Mayor Rhodes called for a five-minute recess.
Mayor Rhodes then recessed the regular Council meeting for the meeting of the
Corpus Christi Housing Finance Corporation.
The Mayor reconvened the regular Council meeting.
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Regular Council Meeting
November 15, 1994
Page 7
Mayor Rhodes opened discussion on Items 4.a., 4.b., and 4.c., Columbus Fleet
shipyard and seaport, and "Seeds of Change" museum expansion project.
Mayor Rhodes called for comments from the audience.
Mr. J.E. O'Brien, 4130 Pompano, said that the original contract with the Columbus
Fleet Association called for different locations for the vessels than the ones proposed.
He asked if a new contract had been drafted, and asked what would happen if the
proposed certificates of obligation to finance the projects were not issued.
Responding to Mr. O'Brien, City Manager Garza stated that the citizens could
petition and require an election before any certificates were approved; however, that
would be problematic since the city would then not have the funds to proceed with the
Columbus Fleet project. Mr. Garza added, and Mayor Rhodes concurred, that the
proposal was fully supported by the Spain '92 Foundation, the Columbus Fleet Task
Force and the city.
Referring to another comment made by Mr. O'Brien, Mr. Alex Harris, Chairman of
the Columbus Fleet Task Force, said that the reason the word partnership was used in
the current proposal was that until this point, the Spain '92 Foundation felt it had not
participated fully in the management of the ships. The current proposal emphasizes the
participation of all three entities.
Council Member Cooper thanked Mr. Harris, Mr. Dusty Durrill and all those
involved with the fleet for their efforts. She said she was recently reminded how difficult
it was to acquire the Columbus ships in the first place and how important it is to keep
them here.
City Secretary Chapa polled the Council for their votes as follows:
4.a. ORDINANCE NO. 022082
Ordinance appropriating $200,000 received from the Corpus Christi Housing
Finance Corporation for architectural and engineering services relating to facilities
to house the historical Columbus Ship replicas, the Nina, Pinta, and Santa Maria,
for display adjacent to and in conjunction with the Corpus Christi Museum of
Science and History; providing for reimbursement to said Corporation.
An emergency was declared and the foregoing ordinance passed by the following
vote: Rhodes, Best, Cooper, Longoria, Martin, and Moss voting "Aye"; Galindo,
McNichols, and Noyola voting "No."
4.b. RESOLUTION NO. 022083
Resolution statement expressing official intent to reimburse costs of facilities to
Minutes
Regular Council Meeting
November 15, 1994
Page 8
house the historical Columbus Ship replicas, the Nina, Pinta, and Santa Maria, for
display adjacent to and in conjunction with the Corpus Christi Museum of Science
and History.
The foregoing resolution passed by the following vote: Rhodes, Best, Cooper,
Longoria, Martin, McNichols, and Moss voting "Aye"; Galindo and Noyola voting
"No."
4.c. M94-297
Motion authorizing a contract for architectural/engineering services with Cotten -
Landreth Architects for the Columbus Fleet shipyard and seaport and Seeds of
Change Museum expansion projects.
The foregoing motion passed by the following vote: Rhodes, Best, Cooper,
Longoria, Martin, and Moss voting "Aye'; Galindo, McNichols, and Noyola voting
"No."
Mayor Rhodes opened discussion on Item 5, renewal of industrial district contracts.
City Manager Garza said that staff recommended approval of the contracts
because they helped Corpus Christi remain competitive in attracting, retaining and
expanding industry.
Group Manager Utter explained that industrial districts were initiated in Corpus
Christi in 1981 and 1982, primarily in the port area. The industrial district contracts
provide for industries to make payments to the city, in lieu of taxes, at the regular city tax
rate of 100 percent of the assessed value of the land and up to 50 percent of the value
of the improvements, which was phased in over a period of 10 years. In addition, the
industries had to be members of the Terminal Refinery Fire Company, or pay the city
more for fire protection.
Mr. Utter said staff had studied industrial district contracts in several other Texas
cities in developing the revised contracts currently under consideration. One major aspect
of the proposal is that it will result in approximately 20 percent additional revenue to the
city. He said based on this year's figures, over a 10 -year period, the city would receive
about $10.6 million of additional revenue.
Another aspect is that the city has negotiated with the industry representatives for
the new contract to take effect on January 1, 1995, rather than at the end of the existing
contract (January 1, 1996). This results in $842,000 of additional funds in 1995. In
addition, the current cap on land values stays at 100 percent and the cap on
improvements would change from 50 percent to 60 percent. The phase-in period on new
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Regular Council Meeting
November 15, 1994
Page 9
improvements would also be substantially increased, and the contract term would be for
10 years.
Mr. Utter also discussed other provisions of the proposed contract, including buy
local, industrial use, contamination clean-up and buffer zones, the form of the contract,
and emission control equipment.
Council Member Moss commented on the state exemption for pollution control
equipment and noted that the city does not provide as many services to companies within
the industrial districts. Mr. Utter explained that the city provides back-up fire service,
some police patrols, and EMS service; however, water and sewer services are on
outside -city -limits rates, which are much higher.
Responding to Council Member Longoria, Mr. Utter explained that the proposed
contract would consider the value of an industry's improvements without any
consideration of the pollution control equipment exemption. Mrs. Longoria thanked staff
for their efforts in negotiating the contract.
Council Member Martin said he felt the earlier effective date and the resulting
revenue were important aspects of the contract, as was the provision for pollution control
equipment. He said he felt it was a fair and equitable contract for both parties.
In response to Council Member McNichols, Mr. Utter said the city's proposed
contract compares very favorably to contracts in other cities; in addition, it contains some
provisions --such as the buy local provision --which are not included in other cities'
contracts. Dr. McNichols emphasized that under the proposed contract, the industries
would be paying their fair share. He expressed concern about the buy local provision,
and Mr. Utter responded that before the contract's second reading, that provision's
language might be altered to include a test for reasonableness.
Council Member Noyola stated that the buy local provision was very important.
Responding to a question from Mr. Noyola, Mr. Utter explained that at various times staff
has negotiated with various groups of representatives from the industries, most recently
with representatives of four of the largest industries in the city. He said currently there
are 61 industrial district contracts and it was impossible to negotiate with all of them, but
negotiations were held with representatives of the Board of Trade. Mr. Noyola said he
wanted staff to meet with all the representatives of the industries for their input on the
contract.
Mr. Garza introduced Mr. Mike Carrell, representing the Corpus Christi Bay Area
Business Alliance, which supports the proposed contract. Mr. Carrell showed a slide
presentation illustrating the following points: port industries' capital investments, port
tonnage (1984-94), employment growth (1984-93), status of U.S. refining industry, and
industrial district payments (1982-94).
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Regular Council Meeting
November 15, 1994
Page 10
Mr. Garza then introduced Mr. Joe Capuano, Administration Manager of CITGO
Refinery, who was speaking in place of Mr. Adolf Lechtenberger. He said there has been
general agreement among the industries in the port area to finance a proposed buy-out
program of the residential property within the area north of IH -37 and Oak Park. While
there are still many details to be settled, within the next 30 to 60 days it is anticipated this
program will move forward, he added.
Mrs. Longoria asked that a presentation on the buy-out program be made in the
near future. Mr. Garza said there are still some details that remain, but he would bring
the issue first to the citizens who will be affected, and then to the Council and the public.
Mr. Garza concluded that the proposed contracts strike a good balance between
maintaining the city's competitiveness for growth and generating revenues that the city
needs to provide services to its citizens.
Mayor Rhodes called for comments from the audience.
Mr. Kirk Weinert, Vice President of the Coastal States Management Corporation
in Houston, said his company did not receive a draft of the proposed contract until
November 11, 1994, since they were not among those involved in the negotiations. He
said his company's initial response dealt primarily with the proposed fee increase, the
buy-out provision, and the pollution control equipment provision. He asked that they be
given more time to review the proposal, and Mayor Rhodes said rather than have the
second reading during the November 22 meeting, it could be considered during the
November 29 meeting.
Responding to Dr. McNichols, Mr. Garza said the city was not informed of the
process the negotiating committee used to inform their members. He said staff
emphasized the importance of keeping all the industry representatives informed, but the
city does not accept responsibility if they were not. Mr. Garza added that staff had met
with Coastal Refining that morning to discuss the industrial district contract.
The issue of when to consider the second reading was discussed, and it was
determined that the item would tentatively be placed on the agenda for the November 29
meeting. In the meantime, Mr. Garza said he would invite all 61 industry representatives
to a meeting the following week regarding the contracts.
Council Member Galindo asked Mr. Weinert about the rates that Coastal Refining
pays for water service, and a brief discussion ensued regarding costs of treated and
untreated water inside and outside the city limits.
City Secretary Chapa noted that there were some clerical changes to the proposed
ordinance, and Mr. Garza stated that those changes could be made before the second
reading. Mr. Chapa then polled the Council for their votes as follows:
Minutes
Regular Council Meeting
November 15, 1994
Page 11
5. FIRST READING ORDINANCE
Amending Ordinance 15898, as amended, authorizing the designation of land
areas located within the extraterritorial jurisdiction of the City of Corpus Christi,
Texas, as industrial districts; reserving and preserving all rights, powers and duties
of the City Council; and providing for a savings clause.
The foregoing ordinance passed on first reading by the following vote: Rhodes,
Best, Cooper, Galindo, Longoria, Martin, McNichols, and Moss voting "Aye";
Noyola voting "No."
Mayor Rhodes opened discussion on Item 6, real estate sales contract regarding
the fire station at Doddridge and Staples streets.
Mayor Rhodes called for comments from the audience, and there were none.
Responding to a question from Council Member Longoria, Group Manager Utter
said the buyer would pay the cost of demolishing the fire station, the training tower and
the concrete slab on the property in question.
City Secretary Chapa polled the Council for their votes as follows:
6. ORDINANCE NO. 022084
Ordinance authorizing the City Manager, or his designee, to execute a Real Estate
Sales Contract to sell approximately 2.18 acres out of Lot 17, Block 8, Hopper
Addition, being the northwest corner of South Staples and Doddridge Streets, for
$7.40 per square foot to Peacock Properties, Inc. in accordance with the terms set
out therein.
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."
Council Member Martin asked if the buyer's plans for the property could be
discussed, and Mr. Utter replied that it would be commercial retail development. Mr.
Martin pointed out that after it is sold, the property would be rezoned "8-1" Neighborhood
Business District. Mr. Utter said that staff is preparing a proposal to revise the conditions
of "B-1" zoning.
Mayor Rhodes opened discussion on Item 7, waste grinding services program.
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Regular Council Meeting
November 15, 1994
Page 12
Mr. Utter explained that the Coastal Bend Council of Governments (CBCOG)
received a $55,493 grant from the Texas Natural Resource Conservation Commission
(TNRCC) for the development and implementation of a brush management program. He
added that cooperation among the cities and counties throughout the Coastal Bend is
extremely important in the process of permitting the new landfill.
Responding to Council Member Moss, Mr. John Buckner, CBCOG Executive
Director, stated that nine proposals for brush management services were received by the
Council of Governments in August 1994, and Sabine Services Inc. was awarded the
regional contract. Mr. Moss said it would have been preferable to award the contract to
a local company.
Council Member Martin questioned whether it would be less expensive for the city
to perform the brush management itself. Mr. Garza said the city could contract the work
for one year and then evaluate it before possible renewal. Mr. Utter said staff determined
that it would cost approximately $260,000 to $270,000 for the city to manage the brush,
and the conclusion was it would be more efficient the first year to contract the work
because of the COG grant of $55,493. The resulting wood chips would then be used as
daily cover for the landfill.
Mr. R.T. Bruner, Director of Solid Waste Services, said that the city plans to utilize
the brush chipping/grinding service for one year and then initiate a composting program.
In response to another question from Mr. Martin, Mr. Garza stated that in order to
maintain the budget, the brush services program would have to produce $172,000 worth
of landfill cover.
Responding to Dr. McNichols, Mr. Bruner stated that the brush service was
contracted because it seemed to be the most feasible way to initiate 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:
7. M94-298
Motion approving an Interlocal Contract for participation in the Coastal Bend
Council of Governments (CBCOG) Waste Grinding and Volume Reduction
Services Program at an estimated annual cost of $258,750. Approximately
$38,000 of the first year cost would be paid by a grant from the Texas Natural
Resource Conservation Commission.
The foregoing motion passed by the following vote: Rhodes, Best, Cooper,
Galindo, Longoria, McNichols, and Noyola voting "Aye"; Martin and Moss voting
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Regular Council Meeting
November 15, 1994
Page 13
Mayor Rhodes opened discussion on Item 8, reenactment of Central Power and
Light (CPL) rate ordinance.
City Attorney Bray said staff is recommending the Council adopt this agenda item
for procedural purposes in connection with the ongoing CPL rate case at the Public Utility
Commission (PUC). He noted that the Council, along with other cities in the CPL service
area, had previously adopted a rate -reduction ordinance on CPL rates. In accordance
with state law procedures, those ordinances were appealed to the PUC. Relating to that
appeal, one of the sections of the Public Utility Regulatory Act has been interpreted
differently by different groups regarding the jurisdiction the PUC has to consider an
appeal from cities after 185 days have passed.
Mr. Bray added that CPL requested additional time to prepare its rate case and,
in return, CPL agreed that any rate reduction that was implemented would be retroactive
to June 15, 1994. That procedural compromise was reached by CPL, the cities, the
Office of Public Utility Counsel, the PUC staff, and large industrial customers.
Since the 185 days provided for in the statute have passed, Mr. Bray said staff is
proposing that the Council reenact the same rate reduction it previously enacted so that
no party can argue that a rate reduction --if implemented --could not be given to ratepayers
within the Corpus Christi area. CPL does not oppose the proposed rate reduction
reenactment, it will simply appeal it to the PUC. Mr. Bray said the hearing on the rate
case has been proceeding for some time and expert testimony is being given.
Responding to Council Member Moss, Mr. Bray stated that the rate case is not in
appeal on the court level but rather at the Public Utility Commission. However, a
ratepayer represented by Glynn Pugh disagrees with the procedural compromise that was
reached, and therefore filed a lawsuit in district court in Austin to try to stop the process.
The district judge ruled against him and Mr. Pugh intends to file an appeal with the Austin
Court of Appeals. Mr. Bray added that the reenactment of the rate ordinance will have
no effect on any of the attorney or consultant fees.
Mr. Bray then asked Mr. Geoffrey Gay, an attorney with the firm of Butler, Porter,
Gay and Day, which is representing 108 cities that are part of the coalition of cities
served by CPL, to answer in more detail Council members' questions about the rate case.
Mr. Gay said the General Counsel of the PUC has taken the position that Corpus Christi's
ordinance is no longer before the commission. If and when rates are reduced, the city's
residents would not be entitled to a rate reduction. In order to circumvent any potential
problem, Mr. Gay said he recommended to cities that they reenact ordinances for
jurisdictional purposes. The way the proposed ordinance is worded has no impact on the
procedural schedule before the PUC and has no delay perspective.
Referring to Mr. Pugh's appeal, Mr. Gay said Mr. Pugh's contention is that the PUC
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Regular Council Meeting
November 15, 1994
Page 14
has an obligation under law to implement an immediate interim rate reduction. He
explained why he disagreed with that assertion.
Mr. Moss stated that San Antonio and Austin do not have to appear before the
PUC for any rate changes, and their ratepayers are not burdened with that expense. He
said CPL was negligent in not joining Austin and San Antonio in suing Houston Light and
Power for mismanagement of the South Texas Project nuclear plant. Mr. Gay said that
the reenactment of the rate ordinance does not impact Mr. Pugh's appeal at all.
Responding to another question from Mr. Moss, Mr. Gay said that all of his
expenses would be ultimately reimbursed by CPL in the event of a rate reduction, which
would become an expense item rather than part of CPL's rate base.
Council Member Martin said that if Corpus Christi's rate ordinance is to continue
to be considered, then the reenactment proposal should be adopted on an emergency
basis. Mr. Bray stated that the proposal was a rate ordinance under the City Charter and
it would have to be adopted on two readings. Mr. Martin emphasized the importance of
adopting the proposal. Mayor Rhodes agreed, saying it was imperative that the city not
get involved in political games and jeopardize what is important to its citizens, that is,
reducing their rates.
In response to Council Member Galindo, Mr. Gay said the cities' position is that
CPUs current rates are excessive by $179.6 million; however, the PUC will determine
what that amount might be. He added that the cities' consultants then recommended a
$75 million reduction consistent with most of the rate reduction ordinances passed by the
cities, with an adjustment for invested capital for the long-term benefit of consumers.
Mr. Galindo asked about Section 26(g)(3) of the Public Utility Regulatory Act which
is being debated, and Mr. Gay said that section states that if the PUC does not act upon
an appeal of a city ordinance within 185 days, the rates proposed by the utility company
are in effect. Mr. Gay went on to describe the rate reduction recommendation made
earlier this year by Diversified Utility Consultants Inc., which was hired by the cities, and
discussed in detail the time limit set forth by Section 26.
Mayor Rhodes called for comments from the audience.
Mr. Hal George, of the law firm of Broyles and Pratt, representing CPL, said his
client does not object to passage of the proposed ordinance. He added that CPL does
not believe the rates it charges are unreasonable.
Mr. Glynn Pugh, representing Mr. Raymond Hasker, passed out information to the
Council and described in detail his position regarding the rate reduction case. He said
he requested that the PUC file an interim rate order for a reduction of approximately
$136.9 million. He objected to the agreement which granted CPL additional time to
prepare its case. Mr. Pugh questioned who would bear the cost of mismanagement at
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November 15, 1994
Page 15
the nuclear facility, and said the proposed ordinance was sending the message that the
city did not care if it received an interim order or not, which he said would result in
immediate refunds to the ratepayers.
Responding to Mr. Galindo, Mr. Gay stated that there was no interim rate order
entered because there is no statutory requirement that there be an interim rate order. He
said if there were an interim rate proceeding, there would have to be a hearing, and it
would only be after all the evidence was considered that there would be an interim rate
order. Referring to another question from Mr. Galindo, Mr. Gay described the advantage
that Corpus Christi and other cities served by CPL had because of the retroactive rate
reduction agreement.
Mr. Charles A. Nichols, 1547 Lea Lane, said Mr. Pugh, who has donated his legal
services to this case, is conscientiously representing the average taxpayer. He added
that CPL should be forced to pay the consequences for investing in the South Texas
Project.
Mr. R.F. Hasker, 1813 Wallace, said the Council's vote on the proposed
reenactment would reflect whether or not it was sincere in passing the original rate
reduction ordinance in March 1994. He referred to aspects of Section 26 previously
discussed by Mr. Pugh.
Mr. J.E. O'Brien, 4130 Pompano, said he opposed the passage of the proposed
ordinance because it delays any possible refund the ratepayers may receive.
Council Member Martin stated that Corpus Christi and the other cities involved are
being advised by the attorneys they hired to represent them to pass this ordinance. He
said people do not realize the reputation Mr. Gay's law firm has in Austin of advocacy for
the cities. He said the proposed ordinance protects the ratepayers rather than
shortchanges them, as had been suggested.
City Secretary Chapa polled the Council for their votes as follows:
8. FAILED TO PASS
Ordinance of the City of Corpus Christi, Texas finding, after reasonable notice and
hearing, that the existing rates of Central Power and Light Company are
unreasonable; re -determining just and reasonable rates to be observed and in
force within the City; re -ordering rate reductions; ordering that this ordinance be
served on Central Power and Light Company; preserving regulatory rights of the
City; and providing for repeal of conflicting ordinances.
The foregoing motion failed to pass by the following vote: Rhodes, Best, and
Longoria, and Martin voting "Aye"; Cooper, Galindo, Moss, and Noyola voting "No";
McNichols absent.
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Mr. Martin voted "Aye" and then changed his vote to "No," adding that he would
move for reconsideration of the item at the next Council meeting.
Mayor Rhodes opened the public hearing on the following zoning case:
10. Case No. 1094-4, Southcivard Corporation: A change of zoning from "F -R" Farm -
Rural District to "B-4" General Business District on 1.40 acres out of the southwest
corner of the Nueces River Irrigation Park Annex No. 1, located on the north side
of F.M. 624, approximately 500 feet west of County Road 69.
Mayor Rhodes stated that the Planning Commission and staff recommended
approval.
No one opposed the zoning change.
Council Member Best made a motion to close the public hearing, seconded by
Council Member Longoria, and passed unanimously.
Referring to Item 8, Mr. Galindo asked if it was legal for Mr. Martin to change his
vote that way. City Attorney Bray stated that it was the prerogative of the Chair to accept
the change, which she did.
City Secretary Chapa polled the Council for their votes as follows:
ORDINANCE NO. 022085
Amending the Zoning Ordinance upon application by Southguard Corporation, by
changing the Zoning Map in reference to 1.40 acres out of the southwest corner
of the Nueces River Irrigation Park Annex No. 1, from "F -R" Farm -Rural District to
"B-4" General Business District; providing for publication.
An emergency was declared and the foregoing ordinance passed by the following
vote: Rhodes, Best, Cooper, Galindo, Longoria, Martin, Moss, and Noyola voting
"Aye"; McNichols absent.
Mayor Rhodes opened the public hearing on the following item:
11. Ordinance amending the Corpus Christi Zoning Ordinance as follows:
a. Article 4A. "F -R" Farm -Rural District, Section 4A, Use Regulations, by
deleting Paragraph 13, outdoor advertising as an allowable use;
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b. Amending Article 30. Changes and Amendments by adding a new Section,
30-7 Required Waiting Period, to require a waiting period before the second
rezoning application can be filed when a previous application has been
denied, except under certain conditions and allowing a waiver process;
c. Amending Article 31. Newly Annexed Territory by repealing in its entirety
and replacing it with provisions for public notices and public hearings on the
zoning of property simultaneous with annexation proceedings and providing
for findings to determine appropriate zoning classifications.
The Mayor noted that the Planning Commission and staff recommended approval.
Responding to Council Member Galindo, Group Manager Utter explained that "F -R"
Farm -Rural District is the least intense zoning classification the city has, and it is also the
lowest residential classification. He said it applies typically in newly annexed areas that
have not been developed. Mr. Galindo asked if the outdoor signs located in the "F -R"
zoning areas would fall under the grandfather clause, and Mr. Gunning said they would.
No one opposed the zoning change.
Council Member Best made a motion to close the public hearing; seconded and
passed unanimously.
City Secretary Chapa polled the Council for their votes as follows:
FIRST READING ORDINANCE
Amending the Corpus Christi Zoning Ordinance, Article 4A, "F-R"/Farm-Rural
District regulations, by deleting temporary outdoor advertising as an allowable use;
Article 30, Changes and Amendments, by requiring a waiting period for filing a
second zoning application when a previous application has been denied and
providing a waiver process; Article 31, Newly Annexed Territory by deleting
automatic zoning of property as "R -1B" One -family Dwelling District upon
annexation and requiring that property be zoned upon annexation through public
notice, public hearing, and City Council approval coincident with annexation
proceedings.
The foregoing ordinance passed on first reading by the following vote: Rhodes,
Best, Cooper, Galindo, Longoria, Martin, Moss, and Noyola voting "Aye";
McNichols absent.
Mayor Rhodes called for consideration of consent motions, resolutions, ordinances
and ordinances from previous meetings on Items 12 through 15. Council Member Martin
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said he had questions about Item 14, and City Manager Garza said he would postpone
the item and bring it back for discussion next week.
City Secretary Chapa polled the Council for their votes and the following were
passed:
12. M94-299
Motion approving a supply agreement for approximately 15,000 plastic recycling
bins in accordance with Bid Invitation No. BI -0041-95 with Piper Industries, Dallas,
Texas based on the low bid of $50,700. The term of the contract shall be for
twelve months with option to extend for up to an additional twelve months subject
to the approval of the supplier and the City Manager or his designee. These bins
will be distributed by Solid Waste Services for use in the City-wide recycling
program. Funds have been budgeted for FY 94-95.
The foregoing motion passed by the following vote: Rhodes, Best, Cooper,
Galindo, Longoria, Martin, Moss, and Noyola voting "Aye"; McNichols absent.
13. M94-300
Motion authorizing the City Manager, or his designee, to re -execute the Interlocal
Cooperative Agreement for Local Emergency Response Planning Specific to
Extremely Hazardous Substances, for the years 1994-1996, with the Port of
Corpus Christi Authority, and Nueces County, providing for Administration of the
local Emergency Planning Committee from November 17, 1994 to November 17,
1996.
The foregoing motion passed by the following vote: Rhodes, Best, Cooper,
Galindo, Longoria, Martin, Moss, and Noyola voting "Aye"; McNichols absent.
14. POSTPONED
15. FIRST READING ORDINANCE
Amending Code of Ordinances, Chapter 53 - Traffic, Section 53-252, Schedule III,
Parking Prohibited at All Times on Certain Streets, by prohibiting curbside parking
on both sides of the following streets, at all times:
a. Saratoga Boulevard (S.H. 357), between Staples Street and Rodd Field
Road
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b. Rodd Field Road (S.H. 357), between The Mansions Drive and So. Padre
Island Drive
The foregoing ordinance passed on first reading by the following vote: Rhodes,
Best, Cooper, Galindo, Longoria, Martin, Moss, and Noyola voting "Aye";
McNichols absent.
Mayor Rhodes called for the City Managers report. Mr. Garza said items planned
for the November 22, 1994 meeting included: approval of the concept of the Airport Food
Court and Lounge, an energy savings project for the Bayfront Plaza Convention Center,
and other items.
Mayor Rhodes called for Council concerns and reports.
Council Member Noyola stated that he accompanied the Veterans Band on their
recent trip to Washington, D.C., and he commended Mr. Ramiro Chavez, Musical
Director, and the band for their performance. He said they received many invitations to
perform in other states, and asked if Mr. Chavez could give a presentation at the next
Council meeting about the trip. Mayor Rhodes said she would invite him.
Council Member Martin questioned a memo in the Council members' packets from
Mr. James Dodson, Regional Water Director, regarding firm annual yield and freshwater
releases. Mr. Martin requested information about how the firm annual yield affects the
freshwater releases, and a discussion ensued.
Council Member Best asked why the relatives of the local cab driver who was
recently murdered were not promptly informed of his death. City Manager Garza
explained that, per agreement with the coroners office, the city does not have the
responsibility of informing victims' relatives. He said the media had been informed of that
agreement, but the public perception was still different. Dr. Best also requested a report
on the status of the Lichtenstein building.
Council Member Cooper asked for a report on the status of a light in the park on
Lake George. Also, she said she had received numerous complaints about a car wash
on Saratoga near Weber. Group Manager Utter said that the car wash is legally located
in "B-4" zoning, and while the owner was cited for not having an adequate screening
fence, the fence is being constructed. He noted that the "B-4" zoning predates the
houses in the adjacent subdivision, and it is not uncommon for there to be "B-1" or "B-4"
zoning as part of a large subdivision. Mr. Martin noted that there has not been as much
transitional zoning as there had been in the past. Mrs. Cooper added that she would
have another town hall meeting on December 5, 1994 at 6 p.m. at Elliott Grant Middle
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School, and she thanked Mr. Utter and Mr. Carl Crull, Group Manager for Public Works
and Utilities, for attending the meetings with her.
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 7:45 p.m. on November 15, 1994.