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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 Minutes 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. Minutes 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 Minutes 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 Minutes 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. Minutes 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 Minutes 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). Minutes 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. Minutes 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 Minutes 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 Minutes 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 Minutes Regular Council Meeting 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. Minutes Regular Council Meeting November 15, 1994 Page 16 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; Minutes Regular Council Meeting November 15, 1994 Page 17 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 Minutes Regular Council Meeting November 15, 1994 Page 18 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 Minutes Regular Council Meeting November 15, 1994 Page 19 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 Minutes Regular Council Meeting November 15, 1994 Page 20 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.