HomeMy WebLinkAboutMinutes City Council - 07/11/1995I 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 July 11, 1995, which were approved by the
City Council on July 18, 1995.
WITNESSETH MY HAND AND SEAL, this 18th day of July, 1995.
Armando Chapa
City Secretary
SEAL
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Council Meeting
July 11, 1995
1:00 p.m.
PRESENT
Mayor Mary Rhodes
Mayor Pro Tem Betty Jean Longoria
Council Members:
Dr. Jack Best
Betty Black*
Melody Cooper
Tony Heldenfels*
John Longoria
Edward Martin
Dr. David McNichols
City Manager Juan Garza
City Attorney James R. Bray, Jr.
Assistant City Secretary Saundra Koenning
Mayor Rhodes called the meeting to order in the Council Chambers of City Hall. The Pledge
of Allegiance to the flag of the United States was led by Council Member Cooper.
Assistant City Secretary 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 June 27,
1995, and there being no corrections, she proclaimed them approved as presented.
* * * * * * * * * * * * *
Mayor Rhodes announced the closed session, pursuant to Texas Government Code Section
551.074, to interview and deliberate the appointment and evaluation of Municipal Court Judges with
possible appointments and establishment of compensation in open session.
The Council went into closed session. *Council Members Black and Heldenfels arrived at
the meeting during the closed session.
The Council returned from closed session.
Mayor Rhodes thanked the members of the Municipal Court judge selection committee,
comprised of Council Members Martin, Betty Jean Longoria and John Longoria, for their work in
reviewing the 43 applications for those positions.
Mayor Rhodes made the following motion, seconded by Council Member Cooper, and passed
unanimously:
Minutes
Regular Council Meeting
July 11, 1995
Page 2
1. M95-165
Motion reappointing/appointing the following judges, effective July 17, 1995:
a. Rodolfo Tamez (reappointment) as Presiding Judge of the Municipal Court of Corpus
Christi, Texas, and Judge of Division A thereof, at an annual salary of $61,000
(appointment will not be subjected to reevaluation next year but will maintain the salary
for the two-year period that concurs with the Council terms);
b. Donald Alex (reappointment) as Judge of the Municipal Court of Corpus Christi, Texas,
Division B, at an annual salary of $48,000 (appointment will not be subjected to
reevaluation next year but will maintain the salary for the two-year period that concurs
with the Council terms);
c. Julianna Rivera as Judge of the Municipal Court of Corpus Christi, Texas, Division C, at
an annual salary of $44,100 (with an annual evaluation next year);
d. Caroline Bertuzzi as Judge of the Municipal Court of Corpus Christi, Texas, Division E,
at an annual base salary of $20,000 (with an annual evaluation next year).
Council Member Martin thanked Assistant City Secretary Koenning for her assistance in
preparing for the Municipal Court judge appointments.
* * * * * * * * * * * * *
Mayor Rhodes opened the public hearing on the proposed FY 95-96 budget.
City Manager Garza said the public hearing is a requirement of state law to receive input from
the public on the proposed budget. He noted that a workshop would be held later in the meeting.
Mr. Richard J. Herschbach, 4650 Hakel, discussed a fireman's pension fund error. He gave
a brief history of the issue, which he said is in litigation. Mr. Garza said the city does have an
insurance fund that it uses for any such matters.
Mr. Phil Rosenstein said public safety should be the city's main priority, and he cited examples
of police manpower concerns and a growing fear of crime around the city. Council Member
McNichols asked what portion of the total General Fund budget is allotted for public safety, and Mr.
Garza replied that it is about 51%.
Mr. J.E. O'Brien, 4130 Pompano, said that, if approved, the items on the day's agenda
constituted an expenditure of over $2.2 million, and he gave examples of how the proposed budget
could be reduced to avoid having a tax increase. He also referred to items in the Combined Utility
Fund and the Lavaca-Navidad River Authority contract. In response to Mr. O'Brien's comments,
Mr. Garza stated that some figures in the budget that were miscopied have since been corrected. He
said the LNRA payment should be classified as an Operations and Maintenance expense rather than
as a debt payment. Mr. Garza added that even if the city's fees were increased, they would only
Minutes
Regular Council Meeting
July 11, 1995
Page 3
offset some of the needed revenue but not the total amount.
Mr. Garza said he talked with the Nueces County Tax Appraisal District that morning and it
is estimated that the taxable base will be $6.4 billion, and the final figures should be available by July
25, 1995. He noted that the tax levy would not be set until August after the appropriate publications.
Ms. Dorothy Spann, 502 Del Mar, asked what a 1 cent tax increase would raise, and Mayor
Rhodes replied that it would be $600,000. Ms. Spann then asked some questions about the drainage
utility, and the Mayor replied that certain details about the utility had not been determined. Mr. Garza
explained that the drainage utility rate structure would be determined by figures from the tax appraisal
district, and for a single-family dwelling, it would include the living area, patios, and (if applicable)
a detached garage; however, driveways would not be included. Commercial properties would include
not only the "footprint" of the building but also the paved areas for parking and driveways. He
emphasized that there were many decisions about the utility that the Council still needed to make.
Regarding the approximately $3.2 million that would be "freed up" in the Combined Utility Fund, Mr.
Garza discussed the need to create a greater funding capacity for future water resources, as well as
federal mandates that needed to be funded.
Mr. Abel Alonzo, 1701 Thames, discussed certain federal unfunded mandates, such as
compliance with the Americans with Disabilities Act, and urged the Council to follow the data
regarding adoption of the proposed budget.
Mr. R.F. Hasker, 1813 Wallace, asked if the U.S.S. Lexington paid for its water usage, and
Mr. Garza replied that it did.
Council Member Heldenfels made a motion to close the public hearing, seconded by Council
Member Best, and passed unanimously.
* * * * * * * * * * * * *
Mayor Rhodes referred to the Board and Committee appointments on the day's agenda, and
the following appointments were made:
Cable Communications Commission
Mary Beth Nelson
Coastal Bend Health Facilities Development Corporation
Anna Mercado
* * * * * * * * * * * * *
Minutes
Regular Council Meeting
July 11, 1995
Page 4
Mayor Rhodes opened discussion on Item 3, annexation ordinance regarding six tracts.
Mr. Brandol Harvey, Director of Planning and Development, said this item was the first
reading of the annexation ordinance to annex five tracts of land and one tract of water containing
4,293 acres as part of the city's 1995 annexation program.
No one opposed the annexation proposal.
Assistant City Secretary Koenning polled the Council for their votes as follows:
3. FIRST READING ORDINANCE
Annexing adjacent and contiguous territory containing five tracts of land and one tract of
water to the City of Corpus Christi, Texas; declaring such territory an integral part of the City
of Corpus Christi, Texas; fully describing the annexed territory; adopting a service plan for
the annexed territory; fixing new boundaries for the City of Corpus Christi, Texas; declaring
inhabitants and property owners entitled to all the same rights, privileges and burdens of other
citizens of the City; declaring the annexed territory, as a part of the City of Corpus Christi,
Texas, subject to the City Charter and the ordinances, resolutions, motions, laws, rules and
regulations of the City of Corpus Christi; and providing for severance.
The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Cooper,
Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; Black and B. Longoria absent.
*************
Mayor Rhodes opened discussion on Item 4, contract for museum improvements.
Mr. R.H. Shackelford, Director of Engineering Services, said the item was to approve the
award of a contract to expand the Corpus Christi Museum of Science and History to display the
Smithsonian Institute's "Seeds of Change" exhibit. He said the scope of the expansion is somewhat
less than originally anticipated. He briefly described the different phases of construction associated
with the display of the Columbus Fleet and proposed museum expansion.
Responding to Council Member Martin, Mr. Shackelford said that the $900,000 in certificates
of obligation authorized in December 1994 included $800,000 for construction of the museum
expansion and $100,000 to pay Southwest Museum Services for professional services relating to the
design, fabrication and installation of components of the "Seeds of Change" exhibit.
Mr. Shackelford used an overhead projector to show what the original design of the museum
expansion was as well as the modified design. He said the base bid was $639,000 submitted by
Martin and Schmidt Construction Company, which will provide the museum and the Columbus Fleet
Association with the facilities they need and will house the exhibit.
Minutes
Regular Council Meeting
July 11, 1995
Page 5
In reply to Council Member Heldenfels, City Manager Garza said that a portion of the
hotel/motel tax which the Greater Corpus Christi Business Alliance receives is pledged in the event
that the Columbus ships do not generate sufficient revenues to pay their debt. Mr. Garza went on
to explain how the certificates of obligation were appropriated for the museum project and associated
projects. To clarify another point, he said this project has nothing to do with the Downtown
Management District.
Council Member Cooper asked what was the major missing component from the modified
design of the museum expansion. Mr. Shackelford replied that the shell of the restaurant will not be
included (although the roofing will be in place), nor will there be a separate location for the Columbus
exhibit, which was originally going to be housed in a 2,500 -square foot addition on the east side of
the building; instead, the Columbus exhibit will be integrated into the "Seeds of Change" exhibit.
Responding to Council Member McNichols, Mr. Garza said the funds to pay for the
certificates of obligation (CO's) which were issued would come from the operations of the Columbus
Fleet exhibit and the operations of the museum. He said there is a reservation of funds to make the
first-year payment. If, for some reason, those payments cannot be made, then first dollars from the
Alliance's proceeds would pay for the CO's.
In reply to another question from Mr. Heldenfels, Mr. Shackelford reiterated that $800,000
was appropriated for construction of the museum expansion and $100,000 was used for the design
of the exhibit itself. There was also a $50,000 grant from the Friends of the Museum for the exhibit
design. Mr. Heldenfels said he was not on the Council when the agreement for design of the exhibit
was approved (in December 1994) and he requested more information about it.
Mayor Rhodes called for comments from the audience.
Ms. Dorothy Spann commented that she and her family vacationed in Puerto Vallarta recently,
and she compared it to Corpus Christi's tourist attractions.
Assistant City Secretary Koenning polled the Council for their votes as follows:
4. M95-166
Motion awarding a contract in the amount of $639,900 to Martin & Schmidt Construction
Company for improvements to the City's Museum of Science and History required to display
the Smithsonian Institution's "Seeds of Change" Exhibit.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, 13.
Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Heldenfels voting "No."
* * * * * * * * * * * * *
Minutes
Regular Council Meeting
July 11, 1995
Page 6
Mayor Rhodes opened discussion on Item 5, convention center and coliseum concessions.
Mayor Rhodes called for comments from the audience, and there were none.
In response to Council Member John Longoria, Mr. Garza said staff is recommending that
individuals will no longer be able to bring in their own bottles of alcohol for events being held at the
Bayfront Plaza Convention Center and Memorial Coliseum; instead, all alcoholic beverages will be
purchased from the concessionaire. Mr. Garza said this recommendation was prompted by a safety
concern. Mr. Longoria commented that many people rented those facilities because they were able
to bring their own alcohol and avoid paying the high cost associated with purchasing alcohol from
a concessionaire.
Replying to another question from Mr. Longoria, Mr. Harold Peterson, Director of
Convention Facilities, said concessionaires will be required to list what they will charge for alcoholic
beverages when they submit a request for proposal, and the city has approval authority for any
increase in prices in the future.
Mr. Longoria asked about the safety concerns, and City Attorney Bray said that it was the
view of the Convention Facilities staff that there have been a number of incidents caused by people
who had brought their own alcohol to different functions. He said this proposal lessens the city's
potential to be involved in a lawsuit associated with the use of alcohol at those facilities.
Council Member Heldenfels asked how the city will prevent people from bringing their own
alcohol to functions at the Bayfront Plaza or the coliseum. Mr. Bray said such events are all policed
by some sort of security.
Council Member McNichols commented that the "bring -your -own -bottle" policy that has been
in place encourages the excessive consumption of alcohol, and he agrees with the staff on adopting
a new policy prohibiting BYOB.
Council Member Cooper asked if the city was, in fact, increasing its liability with the new
policy. Mr. Bray said staff considered the issue and determined that on balance, the city would have
less potential exposure by adopting the proposed policy. He said he would provide the Council with
more information on the legal aspects of the issue.
Responding to Council Member Martin, Mr. Bray said there have not been any lawsuits
arising out of the city's current practice of allowing people to bring their own alcohol. Mr. Martin
said the concern by convention staff and Risk Management about the liability issue is theoretical. He
suggested that staff bid the concession contract with both alcoholic and non-alcoholic concession
services. Mr. Garza said that staff had already informed some of the people interested in renting
those facilities about the city's proposal regarding prohibiting BYOB, and there had not been an
intensive adverse reaction.
Minutes
Regular Council Meeting
July 11, 1995
Page 7
Mr. Heldenfels asked if this item could be postponed for further consideration, and Mr. Garza
said he would like to proceed with the request for proposals as Mr. Martin suggested.
Dr. McNichols noted that many of the events held in the past involved minors, and he was
concerned about controlling the consumption of alcohol by those minors. Mr. Peterson said the
contract requires a minimum of two Corpus Christi police officers be hired for an event, depending
on the size. Mr. Martin pointed out that if the policy is adopted, the concessionaire would control
the sale of alcohol to minors but not the consumption.
Assistant City Secretary Koenning polled the Council for their votes as follows:
5. M95-167
Motion authorizing the City Manager to request proposals for concession services at the
Bayfront Plaza Convention Center and Memorial Coliseum.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
* * * * * * * * * * * * *
Mayor Rhodes opened the public hearing on Item 6, street right-of-way closure. No one
opposed the proposed closure, and Council Member Best made a motion to close the public hearing,
seconded by Council Member Heldenfels, and passed unanimously.
Assistant City Secretary Koenning polled the Council for their votes as follows:
6. FIRST READING ORDINANCE
Allowing the phased closing and abandonment of a 74,881 -square foot portion (1.719 acres)
of an old, undeveloped 40 -foot wide street right-of-way out of Lots 3, 4, and 5, Section 10
and Lots 28, 29, and 30, Section 11, Flour Bluff and Encinal Farm and Garden Tract; subject
to compliance with the specified conditions, the replatting, within 180 days, and abandonment
of a 24,060 square foot portion (0.552 acres) of said 40 foot wide roadway easement; and the
replatting of subsequent portions of said 40 foot wide roadway easement within a period not
to exceed five (5) years.
The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black,
Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
* * * * * * * * * * * * *
Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and
Minutes
Regular Council Meeting
July 11, 1995
Page 8
ordinances from previous meetings on Items 7 through 26, and Council Members requested that
Items 7, 8, 10, 11, 24, 25.a., and 25.b. be withheld for discussion.
Assistant City Secretary Koenning polled the Council for their votes and the following were
passed:
9. M95-169
Motion approving the purchase of one 250 -CFM air compressor in accordance with Bid
Invitation No. BI -0231-95 from Air Specialty & Equipment, Corpus Christi for the amount
of $15,900 based on low bid meeting specifications. The unit will be used by the Water
Department and is budgeted in the FY 94-95 Capital Outlay as replacement equipment.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
12. M95-171
Motion approving a supply agreement for portable chemical toilet service consisting of
approximately thirty-nine (39) units in accordance with Bid Invitation No. BI -0250-95 with
Skid -O -Kan, Company, Corpus Christi, Texas based on low bid for an estimated annual
expenditure of $15,610.45. The term of the supply agreement will be 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. This service will be used by the Gas, Park &
Recreation, Solid Waste, Street, Wastewater, and Water Departments. Funds have been
budgeted in FY 94-95 and requested for FY 95-96 by the using departments.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
13. M95-172
Motion approving a supply agreement for approximately 183 tons of sulfur dioxide in
accordance with Bid Invitation No. BI -0261-95 with DPC Industries, Inc., Corpus Christi,
Texas based on low bid for an estimated annual expenditure of $93,975. The term of the
supply agreement will be 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. Sulfur
dioxide will be used to dechlorinate the effluent prior to discharging the treated wastewater
to the receiving stream. Funds have been budgeted in FY 94-95 and requested in FY 95-96.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
Minutes
Regular Council Meeting
July 11, 1995
Page 9
14. M95-173
Motion authorizing the City Manager or his designee to execute a contract for purchase of
services from the State of Texas, Department of Information Resources to provide computer
maintenance to the Police Department's Digital Equipment Corporation (DEC) computer
equipment through the State's DIR Master Contract with DEC from July 1, 1995 to August
31, 1996 with an option to extend for two additional years, one year at a time, at the State's
discretion. The service agreement represents 2 months from July 1995 through August 1995,
and 12 months from September 1995 through August 1996. The State contract requires the
term to be aligned with the State Fiscal Year from August through September. The total
amount of the agreement is $17,695.46. Funds have been included in FY 94-95 and
requested for FY 95-96.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
15. M95-174
Motion awarding a contract in the amount of $120,590 to Lambda Construction for
replacement of return wash water pumps at O.N. Stevens Water Treatment Plant.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
16. M95-175
Motion awarding a contract in the amount of $163,200 to Team Controls, Inc. for O.N.
Stevens Chemical System Improvements.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
17. M95-176
Motion awarding a contract in the amount of $78,660 to Lanco Utilities and Construction,
Inc. for wastewater cleanout program.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
18. M95-177
Motion awarding a contract in the amount of $136,200 to Team Controls, Inc. for O.N.
Minutes
Regular Council Meeting
July 11, 1995
Page 10
Stevens Water Plant Gas Measurement Building Improvements.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
19. M95-178
Motion awarding a contract in the amount of $120,500 to GCC Constructors for Oso Water
Reclamation Plant, Clarifiers #1, 2, 5, and 6, Grout Pad and Rail Repairs.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
20. M95-179
Motion awarding a contract in the amount of $44,597 to E.J. Stefek Company for the
Morgan Street Lift Station Rehabilitation Project (1995).
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
21. M95-180
Motion awarding a contract in the amount of $237,200 to R.S. Black Company Civil
Engineers for Broadway Wastewater Treatment Plant Improvements.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
22. M95-181
Motion authorizing the City Manager or his designee to execute a contract with South Texas
Occupational Health Clinic for occupational medical services for one year with three
additional one year options. The contract is for an estimated $186,270 per year.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
23.a. ORDINANCE NO. 022264
Ordinance appropriating the amount of $24,713 from the Water Arterial Transmission and
Grid Main Trust Fund.
Minutes
Regular Council Meeting
July 11, 1995
Page 11
An emergency was declared and the foregoing ordinance passed by the following vote:
Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols
voting "Aye."
23.b. M95-182
Motion approving the reimbursement application submitted by Diamond L. Development, Inc.
developer of the Great Lakes Estates (Lakes Unit 7) Subdivision for the installation of 919
linear feet of a 12 -inch PVC water grid main.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
23.c. M95-183
Motion authorizing the execution of a Participation Agreement with Diamond L.
Development, Inc. for improvements to Yorktown Blvd. of which the City's share is $44,547.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
23.d. M95-184
Motion approving the reimbursement application submitted by Diamond L. Development, Inc.
developer of the Great Lakes Estates (Lakes Unit 7) Subdivision for the City's share of the
Yorktown Blvd. street improvements completed along the Great Lakes Estates (Lakes Unit
7) frontage (947.50 feet, more or less).
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
26. ORDINANCE NO. 022266
Authorizing the City Manager or his designee to execute a two-year lease agreement with
John B. Russo and Thomas W. Stewart for a tract of land located at Resaca and Sam Rankin
Street to be used by the City's Street Department for material storage for a rental fee of $300
per month with the option to renew for an additional two-year period under the same terms
and conditions.
The foregoing ordinance passed on second reading by the following vote: Rhodes, Best,
Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
* * * * * * * * * * * * *
Minutes
Regular Council Meeting
July 11, 1995
Page 12
Mayor Rhodes opened discussion on Item 7, utility system revenue bond appropriation.
Mr. Garza told Mr. Longoria that he would provide an activity schedule on these projects.
Mayor Rhodes called for comments from the audience, and there were none.
Assistant City Secretary Koenning polled the Council for their votes as follows:
7. ORDINANCE NO. 022263
Ordinance appropriating $14,730,000 from the sale of City of Corpus Christi Utility System
Revenue Bonds, Series 1995, into the various funds as indicated: (a) $12,150,000 to the
Water Capital Improvement Fund No. 598 to support water improvements authorized in the
FY 94-95 Capital Budget; (b) $2,290,000 to the Sanitary Sewer Capital Improvement Fund
No. 508 for wastewater projects as authorized in the FY 94-95 Capital Budget; (c) $290,000
to the Combined Utility System Fund for bond issuance costs.
An emergency was declared and the foregoing ordinance passed by the following vote:
Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye";
Martin voting "No"; Cooper absent.
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on Item 8, purchase of various heavy equipment.
Council Member Longoria asked about the bid on one of the items, and Mr. Garza said that
on a straight bid matter, if the city can justify in an economic sense awarding a bid to a local company,
the city will do that. Mr. Longoria said there was a $120 difference between the bids submitted by
a local company and an Austin company. Mr. Garza said staff is very careful in assessing the
difference in the value of various bids, and a non -local company may be chosen if staff can justify the
value of choosing them. He said the city has more discretion on professional services contracts.
Mayor Rhodes called for comments from the audience, and there were none. Assistant City
Secretary Koenning polled the Council for their votes as follows:
M95-168
Motion approving the purchase of one truckster, one sand trap rake, and six mowers in
accordance with Bid Invitation No. BI -0235-95 from the following firms based on low bid.
The equipment is budgeted in FY 94-95 Capital Outlay budget as replacements for Golf, Park
Maintenance, Wastewater, and Maintenance Services.
Minutes
Regular Council Meeting
July 11, 1995
Page 13
Austin Turf & Tractor Watson Distributing Turf & Irrigation Grand
Marble Falls Texas San Antonio, Texas Corpus Christi, Texas Total:
Bid Items 1 &3 Bid Item 2 Bid Item 4 $100,663
$62,339 $5,328 $32,996
The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B.
Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent.
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on Item 10, purchase of fork lifts.
Responding to Council Member McNichols, Mr. F.D. Glenn, Purchasing Agent, said the
majority of the manufacturers of the items were non -American; he added that parts and service are
readily available. Dr. McNichols questioned whether the price of the parts and service was more
expensive for foreign -made equipment than for items manufactured in America. Mr. Garza said he
needed to get more information and was postponing this item for a later meeting.
10. POSTPONED
Muton approving the pt,nl,asc Ot tw04,000 1b.-capawty h,rkl,lls ul at GO, dd,n c vv, lint
Invitation No. BI -0230-95 flout Nue�ew Powe, Equipu,cut, Co,pu, Cluiat, fu, tl,c luta}
amuuut of $32,794 bab..1 u„ luw Lid n,c„ ting spk.cifivatiuim. Tlic units will be used by th.,
Capital Outlay as additional and replaccmeut cquipn,cut.
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on Item 11, armored courier service.
Council Member Martin asked Mr. Glenn if the reasons for non -bids by the other companies
were legitimate in his opinion, and Mr. Glenn said he thought they were. He added that the city has
a stringent schedule for use of the armored courier service, which was the reason one company gave
for opting not to bid on the contract.
Council Member Heldenfels asked how long it had been since another company had provided
that service, and Mr. Garza said it has been approximately three to five years. Mr. Glenn said the
contract being proposed was a new contract with an option to extend for up to two additional 12 -
month periods.
Council Member John Longoria asked what the alternative would be if the contract were not
approved, and Mr. Garza said it would be for the city to provide the service itself, since the other
companies refused to submit bids. Mr. Longoria suggested that the Council review this in one year.
Minutes
Regular Council Meeting
July 11, 1995
Page 14
Council Member McNichols pointed out that this service has increased in price mostly due
to an early -evening pick-up of deposits at Central Cashiering that was not required by the previous
contract, and an increase in the latch -key night deposit bags.
Mayor Rhodes called for comments from the audience, and there were none.
Assistant City Secretary Koenning polled the Council for their votes as follows:
11. M95-170
Motion approving a supply agreement for armored courier service in accordance with Bid
Invitation No. BI -0158-95 with Horacio Ortiz Independent Security Consultants, Inc., Corpus
Christi, Texas based on only bid for an estimated annual expenditure of $31,800. The term
of the agreement shall be for twelve months with an option to extend for up to two additional
twelve month periods, subject to the approval of the supplier and the City Manager or his
designee. This service will be used by the Cash Management, Municipal Court, Police,
Aviation, Park & Recreation, and Health Departments. Funds are budgeted in FY 94-95 and
requested for FY 95-96 by the using departments.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, Martin, and McNichols voting "Aye"; J. Longoria absent.
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on Item 24, study regarding aquatic life use classification.
Council Member Martin asked if the data gathered in the first phase of the study supports the
city's contention that the discharge permit for the Allison Wastewater Treatment Plant not be made
more stringent. Mr. Shackelford said he felt that it did. He added that the Texas Natural Resource
Conservation Commission (TNRCC) stated that the preliminary data obtained was inconclusive.
In reply to Mayor Rhodes' question, Mr. Shackelford said the new testing program will be
much more extensive and has been accepted by both the TNRCC and the city's consultant. Mr.
Martin asked that the Council be involved in the process of trying to avoid a more stringent discharge
permit for the Allison Plant.
Mayor Rhodes called for comments from the audience, and there were none.
Assistant City Secretary Koenning polled the Council for their votes as follows:
24. M95-185
Motion approving Amendment No. 2 in the amount of $125,000 to the contract for
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Regular Council Meeting
July 11, 1995
Page 15
engineering services with Alan Plummer Associates, Inc., Austin, Texas to conduct studies
and evaluation of data to reach agreement with the Texas Natural Resource Conservation
Commission (TNRCC) on the classification of segment 2101 of the Nueces River for the
purpose of securing amendment to Texas Surface Water Quality Standards to secure an
amended permit for the Allison Wastewater Treatment Plant.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent.
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on Item 25, Southeast Area Development Plan.
Council Member McNichols noted that policy statement D.2 of the proposed development
plan had been altered following discussion at the last Council meeting regarding the specific location
of a proposed view vista. He said that policy statement also refers to plans to acquire and develop
a combination park/bayfront view vista at the intersection of Ocean Drive and Airline Road. Dr.
McNichols said he opposed locating a public park there because it was too congested. Mr. Harvey
said that if a park were to be located there, it would have to be very sensitive to traffic movement
onto and off of Airline and Ocean Drive.
Dr. McNichols said there is continuing concern about the future status of Elizabeth Street.
City Manager Garza said the city has been approached by Spohn Hospital about the possibility of
closing Elizabeth Street to through traffic. He said Spohn's plans involve a major realignment of
Santa Fe Boulevard and of the hospital itself. Mr. Garza added that those plans are not included in
the Southeast Area Development Plan. Dr. McNichols said that even though Spohn's plans are not
being considered at this time, it does not mean that it may never come before the Council; rather,
Spohn could bring those plans to the city for consideration by the staff, Planning Commission and
possibly the Council.
Mayor Rhodes said that this Council made it clear during the June 27, 1995 Council meeting
that they had no intention of closing Elizabeth Street, but that does not mean that future Councils will
have the same intention, or that Spohn does not have the right to go through the process.
Council Member Heldenfels said he understood the objections of the residents of Marina Del
Sol to the closure of Elizabeth Street. Responding to a question from Mr. Heldenfels, Mr. Garza said
that he had had discussions over many years with Spohn Hospital officials about their plans, and Mr.
Harvey had not been made aware of those plans until just recently. Mr. Garza added that staff is
considering taking a right-of-way through the block where the round building near Spohn is, in order
to make a smoother transition onto Third Street.
Mayor Rhodes called for comments from the audience.
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July 11, 1995
Page 16
Dr. Randy Cutlip, President of the Marina Del Sol Condominium Association, said the
members were upset about the possibility of closing Elizabeth Street. He had talked with the Spohn
Hospital president about it and she indicated that the plan was a "quid pro quo" --that if the city took
some of the right-of-way owned by Spohn, then the city would give up Elizabeth Street. He said
Elizabeth Street is their only safe entrance to their building. Mayor Rhodes reiterated that this
Council said it would not close Elizabeth Street but she could not control what future Councils did.
Assistant City Secretary Koenning polled the Council for their votes as follows:
25.a. M95-186
Motion to amend, prior to second reading, Exhibit A, the Southeast Area Development Plan
as an element of the City of Corpus Christi Comprehensive Plan by allowing for a more
general location for the combination park/view vista point rather than specifically located next
to the Pharaoh Valley drainage outfall.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels,
B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
25.b. ORDINANCE NO. 022265
Adopting the Southeast Area Development Plan as an element of the City of Corpus Christi
Comprehensive Plan; modifying the Transportation Element of the City of Corpus Christi
Comprehensive Plan; and establishing the City of Corpus Christi's development objectives,
policies, and programs for the Southeast Area.
The foregoing ordinance passed on second reading, as amended, by the following vote:
Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols
voting "Aye."
i i * * * F# f # i■ i i
Mayor Rhodes called for the City Manager's report. Mr. Garza said items for the July 18,
1995 meeting include the first reading of the proposed budget and a presentation on the site of the
new landfill. He noted that major items of interest on each week's Council agenda are published in
the Corpus Christi Caller -Times in Section B-1, and the agenda is aired on TCI Cablevision Channel
20 at 7 p.m. on the Monday prior to each Council meeting; in addition, the complete agenda is
available to the public the Friday prior to each meeting.
Mr. Carl Crull, Group Manager for Public Works and Utilities, stated that the traffic patterns
at Holly and Everhart would be changed from the east half of Everhart to the west half.
In her report, Mayor Rhodes announced that the Corpus Christi Lady Bulls, a girls' basketball
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Regular Council Meeting
July 11, 1995
Page 17
team, will be leaving July 20th for the national tournament in Indianapolis, Indiana. She said citizens
could contact her office if they wish to give donations to the team.
Mayor Rhodes called for Council concerns and reports.
Council Member Martin said there is no engineering or traffic -handling connection between
plans to realign Third Street and with any discussion of closing Elizabeth Street. In reply to a
question from Mr. Martin, Mr. Garza said the pass-through provision regarding freshwater releases
is in effect. He added that the city can take advantage of reduced releases if the city invokes
voluntary conservation measures, but the city is not releasing any stored water.
Council Member Cooper asked if a notice about the availability of Council meeting agendas
could be included with citizens' utility bills. She also announced a town hall meeting at 6 p.m. on July
12, 1995 at the Alternative School on Airline.
Council Member John Longoria asked for a draft of the graffiti ordinance to be considered.
Mr. Garza said that ordinance should come to the Council in about one month.
Council Member Betty Jean Longoria asked for more information about a rezoning proposal
in the Rolling Acres area. Mrs. Longoria also referred to a memo submitted by Police Chief Henry
Garrett about the cost of converting several Police Department positions from sworn officers to
civilians. Mr. Garza said he had not proposed that the civilianization occur during FY 95-96 due to
restricted revenue requirements.
Responding to Council Member McNichols, Mr. Garza said the COPS AHEAD grant will
fund most of the 10 additional police officers as previously discussed. Dr. McNichols said the
civilianization plan should be considered, and Mr. Garza agreed.
Mayor Rhodes said the Council should consider the issue of Police Department civilianization
in more depth later in the Council meeting. She then called for petitions from the audience.
Mr. W.G. West, representing Mr. Mike Griffith, the Chief Probation Officer of the Nueces
County Juvenile Department, discussed the Make Amends Program. He thanked the Council for their
ongoing support of this program in the effort to control graffiti around the city. He noted that the
Make Amends Program in 1994 received the National Council of Family and Juvenile Court Judges
Outstanding Community Service Project award, and the Juvenile Department's volunteer program
was named the Outstanding Volunteer Program in the country. He distributed information to the
Council about the Make Amends Program and the Silver Haired Legislature.
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on the workshop on the proposed budget for FY 95-96.
She referred to the previous discussion about civilianization in the Police Department.
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July 11, 1995
Page 18
City Manager Garza stated that since 1988, 46 police officers have been added to the force.
Responding to Council Member McNichols, Police Chief Garrett said the 10 police officers
paid for by the federal grant must be used for community policing, and he has directed that they will
support the Juvenile Enforcement Team. He said if 11 civilians were hired for the Telephone
Reporting Unit (TRU) alone, that would allow eight sworn officers to be redeployed to field duty.
Council Member Heldenfels asked about civilian salaries in the Police Department. Chief
Garrett replied that the department does not have the tumover of employees that it used to; in
addition, some positions have been reclassified to deal with employee concerns.
In reply to Council Member Best, Chief Garrett said the TRU had originally been used as a
light-duty station for injured officers, but the number of injured officers has been greatly reduced.
He said that if the Council approved hiring civilians for the TRU, he would have immediate places
in the field for the eight sworn officers. He also briefly described the command structure of the
department.
Dr. McNichols said he calculated that if seven or eight sworn officers were replaced with
civilians, it would cost approximately $220,000, which is a relatively small figure for gaining those
officers in the field.
Council Member Martin commented that the sworn officers should be replaced by the same
number of civilians, and a discussion ensued. He said that eight sworn officers could be replaced by
eight civilians in the Telephone Reporting Unit, and that cost could be paid for through increased fees
in the proposed budget. He noted that a separate proposal could be made in the future regarding
replacing sworn police officers in the Pawn Shop Detail with civilians.
Dr. McNichols made a motion directing the City Manager and the Police Chief to prepare a
proposal regarding initially replacing eight sworn police officers with eight civilians, and proposing
in the future to increase civilian positions in the Pawn Shop Detail. The motion was seconded by Mr.
Heldenfels, and it passed unanimously. Mayor Rhodes pointed out that the motion was in the form
of instructions to the staff, and final decisions on the budget would be voted on when the whole
budget is voted on.
s■ss•ssers*s*
Mayor Rhodes recessed the Council meeting for a dinner break, following which the Council
reconvened at 6 p.m. to continue the budget workshop.
•s*r**r*****r
City Manager Garza listed the major budget concerns: public safety, solid waste services,
street improvement projects, and debt service coverage. He said funding options include: increase
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Regular Council Meeting
July 11, 1995
Page 19
of the tax rate; surcharge on solid waste services; fee increases in the General Fund; property tax
increase for capital improvements; and a transfer of the debt currently supported by the General Fund
for drainage purposes to the new drainage utility.
Group Manager Crull referred to material distributed to Council members about the proposed
drainage utility. He said with the creation of the drainage utility, approximately $3.26 million would
become available within the Combined Utility Fund, which could be used for debt service for the
capital improvements program in water and wastewater, as well as possibly financing new water
sources. Mr. Crull then introduced Ms. Valerie Gray, Stormwater Superintendent, who described
the proposed drainage system annual revenue requirements.
Ms. Gray said the revenue required at current service levels included the following: operations
and maintenance ($2.6 million); MIS billing and system support ($150,000); City administrative
overhead allocation ($170,000); and insurance ($340,000), for a total of $3.26 million.
She described other drainage system revenue requirements: data base and billing unit
($160,000); repayment to Wesley Seale Reserve Fund for drainage capital improvement projects
[CIPs] ($144,500); new drainage CIPs [on a "pay-as-you-go" basis] ($3 million); service level
enhancements ($1.77 million); existing drainage general obligation debt service ($951,390); allowance
for uncollectible accounts ($167,000); and future Environmental Protection Agency requirements
($200,000). The total annual requirements are proposed to be $9,657,890.
Council Member Cooper noted that mowing of drainage ditches has been a concern raised
at her town hall meetings. Ms. Gray said that there are 865 miles of drainage ditches in the city; of
that, there are 100 miles of major drainage ditches that are excavated and cleaned approximately once
every three years. Ms. Gray added that crews are responsible for mowing over 2,500 acres of right-
of-way and drainage ditches. Regarding the "rolling" of curbs throughout the city, Ms. Gray said
citizens have reported at least 200 Locations where that has occurred, and the new drainage utility is
proposing an annual revenue requirement of $1.5 million for a city-wide curb and gutter replacement
program, which would facilitate proper drainage.
Responding to Council Member Betty Jean Longoria, Ms. Gray said that another one of the
proposed drainage revenue requirements would be an allowance of $167,000 for uncollectible
accounts, which is 2% of the annual revenues. This allowance also provides for corrections in square
footages which are used to calculate drainage user charges. Mrs. Longoria pointed out that one area
in her district which floods frequently is Mobile Estates at Leopard and South Padre Island Drive.
Council Member Martin requested information about which items in the Combined Utility
Fund are being removed and replaced by the proposal for drainage utility revenue required at current
service levels. Mr. Martin asked if the proposed $3.26 million of current service level revenue could
fund capital improvement projects the first year and then use the $3.26 million in the Combined Utility
Fund in future years if it meets the timing requirements on the city's bond program; Mr. Garza said
that would be possible.
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July 11, 1995
Page 20
Mr. Martin also asked about the drainage utility data base and billing unit revenue requirement
of $160,000 a year. Ms. Gray said this would be a new cost with the creation of the drainage utility.
Mr. Crull added that since the charges are being based on square footages rather than being read from
a meter, the data will need to be put into the computer as it is obtained from the Nueces County Tax
Appraisal District or the city's building inspection department as building permits are issued, in
addition to appeals of charges.
Responding to another question from Mr. Martin, Mr. Garza said the Wesley Seale Reserve
Fund stipulates that the funds be reimbursed within 10 years. Mr. Crull then discussed the proposal
to fund a city-wide curb and gutter replacement program through the drainage utility. Mr. Martin
commented that the replacement of curbs and gutters in municipal operations traditionally has been
the responsibility of the property owner.
Mr. Martin asked about a statement in the drainage utility proposal, which said if debt were
issued for the new drainage capital improvement projects instead of using the "pay-as-you-go"
approach, the annual cost would be approximately $300,000 for the $3 million in annual projects.
Mr. Garza replied that that did not take into consideration future year requirements, which includes
$7 million in curb and gutter replacements over the next five years. Mr. Martin pointed out that even
if new debt for new projects were added during subsequent years, it would take several years for the
cost to equal the proposed CIP costs during the first year. He added that improved economic growth
should help pay for the drainage CIPs in future years.
In reply to Mr. Martin's question about the large amount of funds ($1.5 million) needed for
curb and gutter replacement, Mr. Crull said the problem of rolling curbs has increased dramatically
over the last several years and more money is needed to make those improvements. Regarding the
proposed routine inlet maintenance program ($675,000), Mr. Crull said the city's current practice is
to clean out inlets only after flooding problems occur. He said the proposed litter control program
($500,000) would reduce the amount of debris flowing through the ditches and into the bays and
estuaries. Mr. Martin commented that discussions about litter control in previous years emphasized
the importance of a street sweeping program, which did not seem to be a component of this drainage
utility proposal.
Mr. Martin asked for the list of projects, with their debt service schedules, that are being
supplanted by the proposed $951,390 in the drainage utility. Mayor Rhodes also asked staff to
indicate which of those projects are one-time projects.
Council Member McNichols commented that the city has had drainage and mowing problems
for many years but has not budgeted enough funds for them in the past. He acknowledged that no
one wants to see another service fee, but these services and improvements are very necessary and
should resolve many of the problems that citizens have frequently complained about. Following an
explanation by Mr. Crull about the current service levels revenue requirements, Mayor Rhodes said
it would be helpful if staff further delineated the items included in the categories of current service
levels, new drainage capital improvements, and service level enhancements.
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Regular Council Meeting
July 11, 1995
Page 21
Responding to a question from Dr. McNichols, Mr. Garza said the existing drainage G.O.
debt service is not part of the current service level that is supported by the Combined Utility Fund;
rather, it is supported by the General Fund. Dr. McNichols questioned the $3.26 million in revenue
that staff indicated is required at current service levels, and Mr. Garza said the Council could consider
in more depth Mr. Martin's previous suggestion regarding funding capital improvement projects.
Responding to another question from Dr. McNichols, Mr. Garza said if the existing drainage debt
service is paid for out of the drainage utility, it would free up approximately 11/2 cents on the tax rate.
Council Member Heldenfels referred to a question asked by Dr. McNichols, and Mr. Crull
said the debt on water and wastewater projects is being paid out of the Combined Utility Fund, and
drainage debt is being paid out of the General Fund. He added that there is a differentiation between
sanitary sewer (wastewater) services and drainage (stormwater) services. Mr. Heldenfels asked about
problems with the Salt Flat and Leopard/Brownlee ("Leathers") area ditches, and a brief discussion
ensued.
Mr. Heldenfels also questioned the need to establish a reserve of $200,000 for future EPA
requirements. Mr. Crull replied that the EPA reviews the city's data on an annual basis and at some
point they may determine that little or no improvement in pollution control has occurred, and the EPA
may then impose additional requirements.
Mayor Rhodes commented that $200,000 was not a large amount of money for future,
unforeseen federal mandates. Responding to a question from the Mayor, Ms. Gray said the proposed
litter control program (part of the service level enhancements) is intended to gather up litter before
and after mowing operations.
Responding to Mr. Martin, Mr. Garza said that the 1996-2000 preliminary Capital
Improvement Program recommendations distributed last week to the Council included the drainage
capital improvement projects because a decision had not yet been made on the drainage utility itself,
and how to fund those projects. Mr. Martin argued in favor of financing the drainage improvement
projects, rather than adopting the proposed "pay-as-you-go" approach, and a discussion ensued about
the two methods.
Mr. Crull went on to describe the criteria used to develop the drainage user charge, including
fairness to customers (with no "inter -customer burdens") and being able to respond to changing
demand and supply conditions. He noted that currently state law requires that a parcel of land must
have water or wastewater services available to it. As of September 1, 1995, an amendment to that
criteria will become effective, stating that a parcel be an improved lot (it must have improvements
which result in impervious areas).
Mr. Crull said the law also requires that drainage service be available to the lot, that the
charge be directly related to drainage, and that an inventory of the property be conducted prior to
charging for drainage. He said the city's proposal would use the tax appraisal district's records as
the required inventory. Mr. Crull noted that some parcels—such as schools and churches --do not have
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Regular Council Meeting
July 11, 1995
Page 22
tax information available, and staffmade some assumptions as to what percentage of the total parcel
size is covered by impervious areas. As a result, he said staff is contemplating an appeal process
before billing for the drainage utility begins in January 1996 (if it is approved).
He explained the proposed "tier" system for determining drainage charges, as well as why
staff does not recommend the concept of maximum charges, as it would result in a shift of paying for
drainage from large parcels of land to smaller parcels of land.
Responding to Mr. Heldenfels, Mr. Crull said charges would be based on square footages of
ground level improvements ("footprint") recorded by the tax appraisal district (including the living
area, garage and patios for residential properties). Mr. Heldenfels also briefly discussed the problems
of rolled -over curbs.
Upon verification by Mr. Crull, Mr. Martin pointed out that on residential properties,
driveways would not be included in the criteria for determining the drainage charge; however, for
businesses, driveways and parking lots would be included. Mr. Crull said the only city facilities that
would be charged for drainage services are the City Enterprise Funds, including Water, Wastewater,
Gas, Airport, and Golf. He noted that Texas A&M University -Corpus Christi would not be charged
because that facility has its own drainage system. Mr. Martin questioned the decision not to charge
all city facilities. Mr. Crull said there is a provision in state law which would allow for exemptions
of schools, churches and governmental entities; in addition, private streets would be charged but
public streets would not be.
Mr. Martin asked staff to schedule one or more public hearings to receive feedback from the
citizens about the proposed drainage utility and how the charges will be assessed. He anticipated
many examples that may not fall within the rate structure staff has proposed.
Dr. McNichols asked about the allocation of square footages in cases of multiple utility
customers, such as a condominium. Mr. Crull replied that in the case of condos and townhouses,
most of them have a separate water account for an irrigation system that is billed to the condominium
association rather than to the individual unit holders. He said staffs concept is to bill the whole
property of the condominium to that separate account and it could be divided up among the owners
as part of their monthly maintenance fee. In the case of, for example, four utility accounts on one
piece of property, the charge would be divided four ways. If that division is inequitable, then the
different account holders could appeal the charge and prove that they should be charged differently.
Mr. Crull noted that there are many details that cannot be gleaned from the tax appraisal district's
records.
Responding to Council Member Best, Mr. Crull said staff obtained copies of ordinances
regarding drainage utilities that have been established in other Texas cities, including Arlington,
Austin, Dallas and San Antonio. Mr. Crull went on to describe how those other cities structured their
drainage user charges, and a brief discussion followed.
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Regular Council Meeting
July 11, 1995
Page 23
In reply to Mr. Martin, Mr. Crull discussed the requirements regarding charging customers
within the city's extraterritorial jurisdiction. Mr. Martin raised additional questions regarding the rate
structure, emphasizing that it needs to be equitable.
Council Member Black asked what the monthly charge would be for a 1,600 square foot
home, and Mr. Crull said it would be approximately $4 based on proposed revenue requirements of
over $9.6 million. He added that citizens would be charged on their monthly utility bills. Mrs. Black
also asked about the winter averaging system, and a few comments followed.
Mr. Crull asked the Council if they supported the proposed drainage utility rate structure,
including the concept of impervious areas. Mr. Garza said staff could add a factor to the residential
rate structure to include some estimate for driveways, which would decrease the share of the cost for
drainage that would have been borne by non-residential customers. He said staff would also analyze
different ways to fund the drainage capital improvement projects and other expenditures.
Mr. Martin pointed out that the only decision regarding the drainage utility that the Council
needed to make before adopting the new city budget would be that no matter what level of funding
is eventually approved, it would be a minimum of $951,390 to be used for debt service. He said there
were many policy issues the Council needed to set for the drainage utility. There was a consensus
among the Council to approve a minimum of $951,390 for the drainage utility.
Mayor Rhodes called for a five-minute recess.
* * * * * * * * * * * * *
City Manager Garza outlined the optional scenarios about the General Obligation Debt
Service Fund. The assumptions for scenario #1 include a tax increase in the debt service fund of
$0.0042 in FY 95-96, no further tax rate adjustments over the next five years, a 2.75% growth in the
tax base for FY 95-96, and a 2% growth the following years (the tax base growth projections remain
the same in all the scenarios). Under scenario #1, the debt service coverage would be 76% for FY
95-96 but it would decrease dramatically each year to 27.92% in FY 2000-01 (all the other scenarios
except #4 meet the 75% debt service coverage target).
Responding to Dr. McNichols, Mr. Garza said scenario #1 does not project any new debt over
the next five years, and the contributions from bond fund interest would drop to $0 in FY 96-97
because the city has been drawing down its bond construction monies. He added that the item that
can be adjusted is the property tax revenue.
Referring to the scenario, Mr. Martin commented that the city is deficit spending in the bond
fund because the city has used interest earnings on debt service, which has kept the tax rate and the
expenditures down; however, now the city is completing the projects from the 1986 bond program
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Regular Council Meeting
July 11, 1995
Page 24
and not selling any new bonds.
Mr. Garza said optional scenario #1B calls for a $0.0220 tax increase in FY 95-96 with no
further tax rate adjustments; scenario #2 calls for a $0.0072 tax increase in FY 95-96 and no further
tax increases for five years, as well as a contribution from the drainage (stormwater) utility for
drainage debt beginning in FY 95-96, based on a seven-month pro -ration; scenario #3 calls for a
$0.01360 tax increase in FY 95-96 and no tax increases for the next five years, the contributions from
the drainage utility, and a $4.8 million street improvement bond sale in FY 95-96 ($4.7 million in
bonds and $1 million for issuance costs); and scenario #4 includes the same assumptions as in
scenario #3, with the exception that the drainage utility contribution would not begin until FY 96-97,
and this scenario does not meet the 75% debt service target (although it does not go below 71%).
Mayor Rhodes pointed out that all of the scenarios deal only with the G.O. Debt Service
Fund, and the tax increases discussed pertain just to that fund and not to the General Fund. Mr.
Garza referred to a problem that occurred in the Tourist and Convention Fund about which he would
provide more information by the end of the week.
Responding to Mr. Heldenfels, Mr. Garza said the unreserved ending fund balance for this
fiscal year is $2.3 million and the projection is approximately $260,000 next fiscal year. He said he
is hoping that the economy will adjust itself next year, and staff will look at the budget carefully
throughout the year to ensure that the city has better operating results than is being projected.
Mr. Heldenfels said he thought the citizens did not want a tax increase, and he questioned the
proposed 3% salary increase for city employees. Mr. Garza replied that one of the components in
setting the budget is how you deal with employees in providing services. And the issue of employee
relations also has many factors, including pay, opportunity, working environment, and others. He
added that a large percentage of city employees are at or below the poverty level.
Mr. Martin asked staff to prepare another scenario showing the assumptions first made about
the proposed FY 95-96 budget with the addition of the drainage utility debt payment, which would
be the starting point from which to determine how to fund the additions in the police budget and other
budget decisions that will be made.
Dr. Best reiterated that the discussion thus far dealt with a tax increase in the debt service
fund. Mr. Garza agreed, noting that in the General Fund, the question of a tax increase in the future
would be determined by the Council's direction to the City Manager and staff regarding services the
city should provide. He said the tax rate breakdown at this time is approximately 44 cents to the
General Fund and 17 cents to the G.O. Debt Service Fund for a total of about 61 cents. He also
noted that the scenarios included the 1995 refunding issue.
Mr. Martin made a motion to include the contribution from the drainage utility into the G.O.
Debt Service Fund, and to allocate approximately $300,000 from the General Fund into the Debt
Service Fund to meet the 75% coverage target; seconded by Mr. Heldenfels. Mayor Rhodes said
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Regular Council Meeting
July 11, 1995
Page 25
there was a consensus among the Council on that issue.
Mr. Herb Canales, Director of Libraries, explained that eight years ago the libraries bought
the existing computer system, which allowed the main library to link with the four branch libraries.
However, newer technology is now needed, and there is a proposal to purchase a multi-
jurisdictionalfmtergovemmental computer system that would accommodate over 200 users at a cost
of approximately $750,000. He said the Corpus Christi Public Library Foundation is trying to raise
$400,000 privately (of which $100,000 has already been raised) to replace the central site equipment;
the other $350,000 would be paid by different jurisdictions, or participants, and the city's share would
be $100,000. Mr. Canales said the Corpus Christi Independent School District has already committed
$188,000 to the project and there are plans to involve other school districts. He noted that this is not
currently proposed in the city's budget.
Responding to Dr. Best, Mr. Garza said that some questions remain about when the city
would have to pay its share of $100,000 if the computer equipment purchase is approved. The
Council voiced its support of the proposal, and Mayor Rhodes said the Council would have to hear
the whole budget presentation before it could make a decision. Mr. Canales added that there are
some federal funds being redirected to support efforts such as these.
Mr. Garza said other issues that needed to be addressed included the Tourist and Convention
Fund and the Golf Centers Fund. Regarding the Golf Fund, he said the city needs to show a
continued investment in the city's two golf courses.
Mayor Rhodes suggested that since more budget discussion needed to be held, the July 18,
1995 Council meeting should begin at 1:00 p.m. instead of the regular time of 2:00 p.m.
In response to Mr. Heldenfels, Mr. Garza said that approximately 80% of the Golf Centers
Fund is derived from fees. He noted that the fund has been brought from a deficit a few years ago
to a healthy fund balance today, and it is proposed that a large portion of that fund balance be used
on one-time capital improvements at two golf courses and on the consulting contract for design of
the new golf course. Mr. Martin pointed out that no money would be spent on the design until the
new outlet mall is under construction. A brief discussion ensued.
Mayor Rhodes reminded the Council that there would be further discussion on the golf course
and other budget issues during the next Council meeting on July 18, which will begin at 1:00 p.m.
There being no further business to come before the Council, Mayor Rhodes declared the
Council meeting adjourned at 9:25 p.m. on July 11, 1995.
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