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HomeMy WebLinkAboutMinutes City Council - 10/24/1995I 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 October 24, 1995, which were approved by the City Council on October 24, 1995. WITNESSETH MY HAND AND SEAL, this 31st day of October, 1995 Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting October 24, 1995 2 p.m. PRESENT Mayor Mary Rhodes Mayor Pro Tem John Longoria Council Members Betty Black Melody Cooper Tony Heldenfels Betty Jean Longoria* Edward Martin Dr. David McNichols City Manager Juan Garza City Attorney James R. Bray, Jr. City Secretary Armando Chapa ABSENT Dr. Jack Best Mayor Rhodes called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Rev. E.F. Bennett (retired), following which the Pledge of Allegiance to the flag of the United States was led by Council Member John Longoria. 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 October 17, 1995, and there being no corrections, she proclaimed them approved as presented. The Mayor then noted that the planned recognition of retired city employee Mr. Leonardo Cisneros would be held during an upcoming Council meeting. ************* Mayor Rhodes opened discussion on Item 2, a presentation by the Ozone Task Force. *Council Member Betty Jean Longoria arrived at the meeting. Mr. Norman Renfro, Chairman of the Ozone Task Force, described the actions the group has Minutes Regular Council Meeting October 24, 1995 Page 2 taken since its formation last year. In September 1994 the committee elected to utilize Texas A&M University -Kingsville (TAMU-K) to conduct a long-term study of the ozone situation in Corpus Christi. The study team's directive was to review and analyze existing data in order to reduce ozone formation and to form a plan of action. Mr. Renfro then introduced Dr. Ray Finch, Chairman of the Environmental Engineering Program at that university, who said that most of his comments were based on a 1992 air emissions inventory that was conducted as well as recommendations made previously by Mr. John Hall, Chairman of the Texas Natural Resource Conservation Commission (TNRCC). Dr. Finch said that according to Mr. Hall, with regard to the precursors for ozone --volatile organic compounds (VOC) and nitrogen oxides (NO,) --about 60% were generated by fixed points (mostly industry), and about 40% were generated by mobile sources (mostly public cars and off-road engines). Dr. Finch referred to the Corpus Christi Area Ozone Planning Report Summary Table, and he described in detail the following issues: short-term actions, better data needs, regulatory and health, and VOC and NO„ controls and how they relate to industrial, general and public sources of ozone emissions. He noted that ozone exceedences are based on meteorological phenomenon and most occur between the months of August and October, and ozone levels often can rise over broad geographic areas. Dr. Finch added that Mr. Hall's recommendation of reducing ozone emissions by 30% could not be achieved by either the industrial or public sources alone --both sources must work together to lower the amount of air pollution produced. Responding to Council Member McNichols, Dr. Finch said that as long as Corpus Christi maintains its attainment status, certain costly air pollution control measures (such as the use of reformulated gasoline and stringent auto inspections) would not be mandatory. Dr. Finch noted that the least expensive recommendations to control pollution should be adopted first, followed by the voluntary adoption of the more expensive recommendations. Dr. McNichols encouraged staff to continue questioning the Environmental Protection Agency regarding its criteria for ozone emissions and exceedences and health consequences. Mr. Renfro went on to describe the Ozone Task Force's recommendations, including the development of a "flexible attainment package" for Nueces and San Patricio counties. In response to Council Member Heldenfels, Mr. Rod Larson, a member of the Ozone Task Force, said he had reviewed many ozone studies relating to health, and they did not show statistically signficant health effects at the level of the standard being considered. Council Member Martin asked why the Coastal Bend Council of Governments (COG) was being recommended as the entity which should establish an Air Quality Committee. City Manager Garza replied that the problem of air pollution in this region encompasses both Nueces and San Patricio counties, and the COG includes representatives from both counties. Mr. Martin pointed out Minutes Regular Council Meeting October 24, 1995 Page 3 that the COG also includes representatives from other counties which would not be affected by the proposed recommendations. Mr. Garza added that funding for additional studies would be granted to the COG, and then it could be allocated to the City of Corpus Christi. A brief discussion ensued, and Mr. Martin said the Air Quality Committee should be established by the City of Corpus Christi. Mayor Rhodes asked Mr. Garza to meet with the administration of the COG. Mr. Phil Vrazel, of CITGO, said his company is in the final stages of designing marine vapor control equipment. He also discussed nitrogen oxide emissions. Replying to a question from Council Member Betty Jean Longoria, Mr. Vrazel said his company has budgeted approximately $10 million for the vapor control equipment. Mr. Renfro pointed out that his company, Valero Refining Company, has also installed the best emissions controls technology available. In addition, Valero has worked with the city and the Texas Department of Transportation in providing reformulated gasoline (RFG), and they are also pursuing the possibility of providing RFG to the general public through an independent service station owner. Mr. Renfro added that Valero is willing to work with Neighborhood Associations on informing the public about ozone action days. Mrs. Longoria asked if information regarding ozone advisories was being disseminated through the schools, and Mr. Garza replied that more progress needed to be made in that area. Mr. Martin made a motion to amend this item to indicate that the City of Corpus Christi -- rather than the Coastal Bend Council of Governments --should establish an Air Quality Committee to explore for Nueces and San Patricio counties the development of a flexible attainment package similar to the "Tulsa Flexible Attainment" memorandum of agreement with EPA. Mr. Garza agreed, saying the success achieved by the City of Tulsa is not the only avenue available to the City of Corpus Christi. Mayor Rhodes seconded Mr. Martin's motion. Dr. McNichols objected to the criteria established by the EPA for ozone violations, and he said the City of Corpus Christi should continue to challenge the EPA regarding those standards rather than begin imposing unilateral restrictions on its citizens. Mr. Garza said the emphasis will be on maintaining clean air practices while trying to avoid the onerous cost of many of the EPA's restrictions. Mayor Rhodes called for a voice vote on Mr. Martin's proposed amendment to the motion, and it passed unanimously. City Secretary Chapa then polled the Council for their votes as follows: 2.b. M95-308 Motion supporting the recommendations of the Ozone Task Force as follows: Minutes Regular Council Meeting October 24, 1995 Page 4 a. That the City of Corpus Christi establish an Air Quality Committee to explore for Nueces and San Patricio counties the development of a flexible attainment package similar to the "Tulsa Flexible Attainment" memorandum of agreement with the Environmental Protection Agency. This committee could include representatives of other areas in Nueces and San Patricio counties, such as the Board of Trade industries and the San Patricio County government. b. That business leaders and federal, state and local officials support the need for grant money presently being allocated by the Texas Natural Resource Conservation Commission to near-nonattainment areas for research. c. That a funding mechanism be pursued so that additional health -based studies can be completed shortly to support the need to revise the ozone standard to no lower than 0.10 ppm, averaged over an 8 -hour period. The foregoing motion passed, as amended, by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Best absent. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 3, five-year Capital Improvement Program and FY 95-96 Capital Budget. City Manager Garza said the purpose of the five-year Capital Improvement Program is to allow the Council to set priorities and to establish a planning document each year. He pointed out that the implementing actions are always brought back for the Council's approval with regard to engineering, architectural, consulting, and construction contracts. Council Member Martin asked if the paving assessment revenues were to be used for debt service rather than on a cash basis as proposed in this item. Mr. Garza replied that the dedication of cash flows from special assessments for bonds was not shown until the second year. Mr. Martin also pointed out that all of the projects being planned for the 1995-96 fiscal year will not be able to be completed during that time. And while he acknowledged that the five-year proposal is just a planning document, it contains projects which the Council has not yet discussed. Mr. Garza suggested that the Council approve the FY 95-96 Capital Budget, and to acknowledge the existence of future projects without formal approval to allow staff to plan for future years. A discussed ensued, at which time Mr. Garza agreed that the future projects would have to be financed through a public -approved bond election which will have to be thoroughly discussed by the Council and presented to the voters. Council Member Heldenfels echoed Mr. Martin's concerns regarding approving only the first year of the capital budget while continuing to plan for the Capital Improvement Program. Minutes Regular Council Meeting October 24, 1995 Page 5 Ms. Grace McNett, Capital Budget Officer, pointed out that while projects that are financed by bond elections are supported by citizens' taxes, the projects also improve the community's standard of living and promote new growth. Ms. McNett then discussed changes that had been made to the proposed Capital Improvement Program since it was presented to the Council in July 1995. Council Member Betty Jean Longoria asked about the establishment of the drainage utility. Mayor Rhodes said the Council should be able to vote on the names of the Citizens Advisory Committee members during the next few weeks. Responding to Council Member McNichols, Ms. McNett said that if the drainage utility is not established within the next six months, the Council would have to review all of the proposed water, wastewater and drainage projects and reprioritize them based on what the Combined Utilities System can support. Mr. Heldenfels said he would not support the establishment of the drainage utility unless the water rates were decreased. Dr. McNichols pointed out that the proposed water system projects are only for improved water distribution and the monies would not be used for long-term water supplies. Mr. Martin emphasized that drainage projects have been and continue to be supported by funds collected through the water utility; however, the water utility should be used to pay for water projects only, and that is the reason why a separate drainage utility needs to be established in order to fund drainage projects. Mr. Martin asked why the proposed drainage improvements for FY 95-96 have increased to approximately $4.6 million. Mr. Garza replied that some changes were made in the proposal, including the addition of the Leathers Project drainage improvements, and Mr. Martin said he would not be willing to adopt the FY 95-96 Capital Budget of which $4.6 million is not funded, unless other sources of revenue are identified. Mr. Martin also expressed concern about the amount of contingency funds available for the proposed projects, and questioned the priority of the projects. A discussion ensued. Responding to Mr. Heldenfels, Mr. Garza addressed the timing of the construction of the various projects contained in the 1986 bond election. He emphasized that those projects have had to be completed in stages; however, they are located throughout the city. Dr. McNichols commented that there was no money to complete the 1986 bond program until the Council recently voted to raise property taxes. And he said the public should understand that future bond elections will necessitate future increases in property taxes in order to finance them. Ms. McNett continued to describe some of the projects contained in the Capital Improvement Program. Responding to Mr. Martin, Mr. Carl Crull, Group Manager for Public Works and Utilities, described plans for the Cunningham Plant. A brief discussion followed. Mayor Rhodes called for comments from the audience. Minutes Regular Council Meeting October 24, 1995 Page 6 Mr. J.E. O'Brien, 4130 Pompano, described the Capital Improvement Program as very ambitious, and questioned the amount of debt that the public would be able to support. He also objected to what he said was the excessive use of certificates of obligation to pay for debt that is not approved by the voters. In reply to Mr. O'Brien, Mr. Martin remarked that if the drainage utility is established, $950,000 will be earmarked for the General Obligation Debt Service fund in order to maintain the percentages of reserve coverage that was established by the Council. Mr. Martin went on to say that he would support the Capital Improvement Program for approximately $56 million. Mr. Garza said staff would incorporate changes as discussed by the Council before the second reading of the ordinance. City Secretary Chapa polled the Council for their votes as follows: 3.a. FIRST READING ORDINANCE Adopting the proposed 1996-2000 five year Capital Improvement Program and approving the FY 1995-96 Capital budget in the amount of $60,859,000. The foregoing ordinance passed on first reading by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Best absent. 3.b. FIRST READING ORDINANCE Appropriating $450,000 in paving assessment revenues from the Street Capital Improvement Fund for street projects in the FY 95-96 Capital budget. The foregoing ordinance passed on first reading by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Best absent. 3.c. FIRST READING ORDINANCE, Appropriating $1,393,171 from interest earnings in the Capital Improvement Fund and authorizing transfer of these funds into the General Debt Service Fund for the annual debt service payment. The foregoing ordinance passed on first reading by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Best Minutes Regular Council Meeting October 24, 1995 Page 7 absent. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 4, cession of extraterritorial jurisdiction. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 4. M95-309 Motion approving an agreement for cession of approximately 6.2 square miles of extraterritorial jurisdiction to the City of Portland. The foregoing motion passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Best absent. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 5, parcel of land to be deeded to the city. Mr. Tom Utter, Group Manager of Development Services, said the city owns property on both sides of the parcel under consideration, which is located across Culberson Street from Ben Garza Park and Gym. He said the tract of land, which is owned by Nueces County, contains a building which used to be the Nueces County Welfare Office but is now in need of demolition. The tract would be combined with the city's tracts to construct additional parking for Ben Garza Gym. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 5. M95-310 Motion accepting a parcel of land to be deeded to the City of Corpus Christi from Nueces County containing approximately 7,000 sq. ft. adjacent to Culberson Street and Block 7, Paul Court Addition to the City of Corpus Christi, Texas. The foregoing motion passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. * * * * * * * * * * * * * Minutes Regular Council Meeting October 24, 1995 Page 8 Mayor Rhodes opened discussion on Item 6, Phase III of the 1995 Annexation Program. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 6. ORDINANCE NO. 0223 83 Annexing adjacent and contiguous territory containing three tracts of land 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, 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 second reading by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. * * * * * * * * * * * ** Mayor Rhodes opened the public hearing on the following annexation zoning cases. No one opposed the proposed zoning changes. Council Member Martin made a motion to close the public hearing, seconded by Council Member Betty Jean Longoria, and passed unanimously. City Secretary Chapa polled the Council for their votes as follows: 7. Case No. C995 -2A. City of Corpus Christi: Zone newly annexed area to `B -2A" Barrier Island Business District on Tract El, located along the northeast side of Park Road 22, approximately 600 feet southeast of Aquarius Street. ORDINANCE NO. 022384 Amending the Zoning Ordinance upon application by City of Corpus Christi, by changing the Zoning Map in reference to Padre Island -Corpus Christi, Section 18, Block 3, Lots 1 through 34, by zoning of newly annexed area to "B -2A" Barrier Island Business District on Tract E1; providing for publication. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best Minutes Regular Council Meeting October 24, 1995 Page 9 and McNichols absent. 8. Case No. C995 -4A. City of Corpus Christi: Zone newly annexed area to "R -1B" One -family Dwelling District on Tract E3, bound by Primavera and Commodores Drive on the north, Aquarius Street and existing City limits on the east, south line being north of Carlos Fifth Court and Topsail Street and Laguna Madre on the west. ORDINANCE NO 022385 Amending the Zoning Ordinance upon application by City of Corpus Christi, by changing the Zoning Map in reference to Commodore's Cove Unit 2 and portion of Island Fairway Estates, by zoning of newly annexed area to "R -1B" One -family Dwelling District on Tract E3; providing for publication. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. 9. Case No. C995 -SA. City of orp u. ri ti• Zone newly annexed area to "R -1B" One -family Dwelling District on Tract E4, bound by Whitecap Boulevard being 1,200 feet north of the north line, existing City limits on the east, Nueces/Kleberg County line on the south and Laguna Madre on the west. ORDINANCE NO. 022386 Amending the Zoning Ordinance upon application by City of Corpus Christi, by changing the Zoning Map in reference to Cape Summer Units 1 and 2, by zoning of newly annexed area to "R -1B" One -family Dwelling District on Tract E4; providing for publication. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. 10. Case No. C995 -7A. City of Corpus Christi. Zone newly annexed area to "F -R" Farm -Rural District on Laureles Farm Tracts, Share 1, being 14.3 acres out of Section D, located along the west side of Chapman Ranch Road (State Highway 286) and along the south side of the Oso Creek. ORDINANCE NO 022387 Amending the Zoning Ordinance upon application by City of Corpus Christi by changing Minutes Regular Council Meeting October 24, 1995 Page 10 the Zoning Map in reference to newly annexed area consisting of the east 14.3 acres of Section D, Share 1, Laureles Farm Tracts by zoning the east 12.37 acres out of the east 14.3 acres of Section D, to "F -R" Farm -Rural District and the west 1.93 acres out of the east 14.3 acres of Section D to "B-1" Neighborhood Business District with a Special Permit for a contractor's storage yard with outside storage and display; providing for publication. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. * * * * * * * * * * * * * Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 11 through 24, and Council Members requested that Items 19 and 20 be withheld for discussion. City Secretary Chapa polled the Council for their votes and the following were passed: 11. M95-311 Motion approving a supply agreement for cellular telephone service in accordance with Bid Invitation No. BI -0025-96 with Southwestern Bell Mobile Systems, Corpus Christi, for an estimated annual amount of $30,328.32, based on only bid. The term of the agreement is for twelve months with an option to extend for up to an additional twelve months subject to the approval of the City Manager or his designee. The contract will be administered by the MIS Department and charges for actual time will be made to each using department. The foregoing motion passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. 12. M95-312 Motion authorizing the City Manager or his designee to execute an agreement with Central Power & Light Company to install continuous street lighting improvements along each of Saratoga Boulevard, between Staples Street and Rodd Field Road, and Rodd Field Road, between Saratoga Boulevard and So. Padre Island Drive, at a cost not to exceed $386,000. The foregoing motion passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. Minutes Regular Council Meeting October 24, 1995 Page 11 13. M95-313 Motion authorizing the City Manager of his designee to execute a Master Lease Purchase agreement with G.E. Capital Public Finance, Inc. to establish a municipal line of credit. The foregoing motion passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. 14. M95-314 Motion awarding a professional services contract for materials testing in the amount of $20,377 to Gulf Coast Testing Laboratory, Inc. for the SPID/Ayers Area Street Improvements Project. Materials testing includes soil, asphalt and concrete tests. The foregoing motion passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. 15. M95-315 Motion authorizing an increase of $281,248.37 to the City's escrow account on deposit with the Texas Department of Transportation (TXDOT) for a total of $1,050,838.30 to cover costs associated with relocating, adjusting and/or constructing water and wastewater facilities as required for the construction roadway improvements on Holly Road from Ayers Street to Everhart Road. The foregoing motion passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. 16.a. M95-316 Motion approving the purchase of City Property Insurance with option to renew annually for three years in accordance with Bid Invitation No. BI -0015-96 through HRH Insurance Agency at an estimated annual premium of $414,483. Monies for these premiums are available in the City's Self -Insurance Fund. The foregoing motion passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. 16.b. M95-317 Motion to reject proposals for Electronic Equipment and Excess Flood Insurance. Minutes Regular Council Meeting October 24, 1995 Page 12 The foregoing motion passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. 17. ORDINANCE NO. 022388 Ordinance amending Ordinance No. 021224 passed and approved on August 27,1995 by amending Section 3 to adopt the final assessment roll and assessments levied against the owners of the property abutting on Saratoga Boulevard from Staples to Rodd Field Road and on Rodd Field Road from Saratoga Boulevard to South Padre Island Drive. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. 18. ORDINANCE NO. 0223 89 Ordinance appropriating $25,000 from the No. 220 Street Trust Fund for the purpose of land acquisition and construction of a cul-de-sac on McCain Drive; and amending Ordinance No. 022076 which adopted the FY 1994-95 Capital Budget to add McCain Drive cul-de-sac as an approved proj ect. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. 21. FIRST READING ORDINANCE Authorizing the City Manager or his designee to execute a five-year lease with the Corpus Christi Model Railroad Club, Inc. ("Club") for the use of city property at 821 Louisiana for recreational purposes in consideration of Club maintaining the facility and assigned grounds and opening the facility to the public; providing for publication. The foregoing ordinance passed on first reading by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. 22. FIRST READING ORDINANCF Closing and abandoning a 1,900 square foot portion of a 10 foot wide utility easement located between Lots 1, 2, and 3, Block 4, Cabaniss Industrial Park; subject to compliance with the specified conditions; and the owner replatting the property within 180 days at his Minutes Regular Council Meeting October 24, 1995 Page 13 expense. The foregoing ordinance passed on first reading by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. 23. ORDINANCE NO. 022392 Amending the Code of Ordinances, Section 53-254, Schedule V, (Increase of State Speed Limit in Certain Zones) by reducing the speed limit on Yorktown Boulevard from 50 MPH to 45 MPH, from Waldron Road to the east end of the Yorktown Boulevard (mud) bridge; providing for publication; and providing for penalties. The foregoing ordinance passed on second reading by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. 24. ORDINANCE NO. 022393 Authorizing the City Manager to execute a lease agreement with Noble Food Service, Inc. to provide concessions services at the Bayfront Plaza Convention Center and Memorial Coliseum for the period beginning at 3:01 a.m. January 1, 1996, to January 1, 2001; at the Bayfront Plaza Convention Center, Noble Food Service shall pay the City 27.5 percent of gross receipts on all mixed drink and wine sales and 38 percent on all beer and all nonalocholic beverage and food sales; at Memorial Coliseum, Noble Food Service shall pay the City 45 percent of gross receipts on all beer sales and 40 percent on all nonalocholic beverage and food sales; Noble Food Service shall also pay the City 80 percent of gross receipts collected from subcontractors for the sale of novelties in the facilities (t -shirts, caps, pictures, souvenirs, etc.) and 5 percent of gross receipts when Noble Food Service acts as retailer selling novelty items; providing for publication. The foregoing ordinance passed on second reading by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; Best and McNichols absent. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 19, adoption of the city's investment policy. Council Member Martin noted that this policy has been adhered to by city staff for years. Responding to a question from Mr. Martin, City Manager Garza stated that staff does not authorize Minutes Regular Council Meeting October 24, 1995 Page 14 disbursement of any funds from the city's accounts unless the securities are in receipt by the custodian. Mr. Garza added that the city will probably only use repurchase agreements on a short- term basis. In reply to another question from Mr. Martin, Ms. Rosie Vela, Director of Finance, said staff will study the use of mutual funds. Mr. Garza pointed out that any proposals are considered by the Investments Committee, which consists of himself, the City Attorney, the Budget Director and other members of the city's top staff. He noted that the aims of the city's investment programs are liquidity, safety and yield, in that order. In response to Council Member John Longoria, Mr. Garza said that the auditing firm which reviews the city's records is also required to review the city's investment policy. He added that the City Treasurer, Ms. Dorothea Montoya, and her staff review potential investments on a daily basis within the established investment guidelines. Mayor Rhodes commented that Ms. Vela and the city's Finance Department are held in high esteem by the bonding raters in New York. Mr. Garza added that the city's investment policy manuel was used as one of the models in further developing the state guidelines, and Ms. Montoya served on the state committee that adopted those guidelines. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 19.a. RESOLUTION NO.022390 Resolution adopting a City Investment Policy for the investment of all city monies. The foregoing resolution passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Best absent. 19.b. RESOLUTION NO. 022391 Resolution appointing investment officers and authorized city representatives to implement the City Investment Policy for the investment of all city monies. The foregoing resolution passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Best absent. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 20, agreement with Southwestern Bell Telephone. Responding to Council Member Martin, Mr. Garza said that some smaller companies in other Minutes Regular Council Meeting October 24, 1995 Page 15 areas of the country have aggressively underbid Southwestern Bell Telephone, but staff was concerned with dependability and they have been satisfied thus far with Southwestern Bell's performance. Mr. Martin then asked what would exempt this item from requiring a bid. City Attorney Bray replied that the city is providing Southwestern Bell the space in which to install their telephones; he noted that this item is not a lease but rather a use privilege agreement. He said the bid laws do not apply in this case, but the Council could bid it if they wished. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 20. FIRST READING ORDINANCE Authorizing the City Manager or his designee to execute a five-year Use Agreement with Southwestern Bell Telephone Company to provide pay phone service to various City facilities for a 22% commission with the option to extend for additional one-year terms. The foregoing ordinance passed on first reading by the following vote: Rhodes, Black, Cooper, B. Longoria, J. Longoria, and McNichols voting "Aye"; Heldenfels and Martin voting "No"; Best absent. * * * * * * * * * * * * * Council Member McNichols asked about Item 12 on the consent agenda regarding lighting standards, and he asked staff to investigate possible problems with the use of fiberglass standards. * * * * * * * * * * * * * Mayor Rhodes called for a five-minute recess. The Mayor then announced the closed session, pursuant to Texas Government Code Section 551.071 regarding CJB Construction, Inc., and Robert E. Jenkins v. Tri-State Ins. Co., et al; No. 92- 3046-F, 214th District Court, Nueces County, Texas, with possible action thereon in open session; and regarding City of Corpus Christi v. Manhattan Construction Company et al, No. 94-6459-A, 28th District Court, Nueces County, Texas. The Council went into closed session. The Council returned from closed session. Minutes Regular Council Meeting October 24, 1995 Page 16 Mayor Rhodes made the following motion, seconded by Council Member Betty Jean Longoria: Motion to authorize the City Manager to execute settlement documents in connection with Cause No. 92-3046-F; CJB Construction Inc., and Robert E. Jenkins v. Tri-State Ins. Co., et al; 214th District Court, Nueces County, Texas, finally resolving all claims arising out of the airport roof case upon payment of $325,000 from United States Fidelity & Guraranty Company to the City of Corpus Christi and its attorneys as negotiated by the parties. (M95-318) Before the vote was taken, Council Member Martin commented that this item was regarding the improper installation of the roof at the Corpus Christi International Airport. Consequently, the city took action and the resulting recovery was a brand new roof as well as the city's cost. Mayor Rhodes called for a voice vote on the motion, and it passed unanimously. * * * * * * * * * * * * * Mayor Rhodes called for the City Manager's report. Mr. Garza stated that Group Manager Utter would briefly discuss Phase IV of the 1995 Annexation Program. Mr. Utter referred to a map of the area proposed for annexation, which consists of eight tracts of land (Al, A2, A5, A6, A7, A8, A9, and A10) located around the Wood River and Five Points area. He described Tract A8, which consists of 401 acres and includes the Suburban Acres Subdivision; he noted that the whole tract has an inadequate water supply and may have problems with code enforcement. Staff has discussed this tract with Nueces County and the Texas Department of Housing and Community Affairs regarding whether this area is eligible for funding under the colonias program. He said staff recommended deleting this tract from the current annexation proposal in order to acquire a colonias grant to supply water to the area; annexation at a later date may be possible. Mr. Utter said staff also recommended leaving in the annexation proposal Tract A10, which consists of approximately 358 acres and is situated between U.S. Highway 77 and Callicoate Road. Council Member Betty Jean Longoria asked if some assurances could be made that the city would try to help the residents living in Tract A8. Mr. Utter said the city could assist Nueces County in applying for a colonias grant, which is similar to the situation that occurred with the San Carlos and San Juan subdivisions. Mr. Utter said the recommendation also calls for leaving in Tracts A5 (consisting of about 434 acres); A6 (708 acres); A7 (731 acres); and A9 (564 acres). However, staff is recommending that Tract A2 be deleted from the annexation proposal. Consisting of about 164 acres of undeveloped land, Tract A2 is part of the Wood River area development plan, and the developers have indicated that they are willing to bring the property into the city on a definitive schedule --not Minutes Regular Council Meeting October 24, 1995 Page 17 less than 15% of their total acreage per year, whether the land is platted or not. Responding to Council Member Martin, Mr. Utter said that if the developers of Tract A2 do not abide by their stated intentions, the City Council can at any time (after adequate notice) annex that property. With regard to Tract A5, Mr. Utter said Hazel Bazemore Park will remain a county park even if that area is annexed. Mr. Utter said Tract A9 contains an "illegal" subdivision which the city recommends for annexation. However,Tract Al, which is situated immediately north of Tract A9, is not being recommended for annexation at this time for several reasons. Mr. Utter explained that Tract A1, which contains the Quail Valley Subdivision and several other subdivisions, is served by the River Acres Water Supply Corporation (RAWS). He said the water lines in that area meet state standards but do not meet city standards and would not provide adequate fire protection if annexed because the lines are undersized. Mr. Utter said staff has discussed the possible annexation of Tract Al with several residents and an attorney representing residents there, and the attorney asked that annexation be postponed for approximately five years. He said during that time, staff will work with RAWS to attempt to upgrade the water lines through that area. Responding to Mr. Martin, Mr. Utter said Tracts A3 and A4 were annexed on July 18, 1995. Mr. Martin said that if Tract A9 is considered for annexation, there should be some assurance that RAWS will continue to serve by contract the two or three owners it is currently serving in A9. Mr. Utter said staff is recommending annexing A9 because it has developmental potential since it contains about 2V2 miles of frontage on FM 624. Mr. Utter also discussed three other tracts that staff is recommending for annexation in Phase IV: Tracts A11, Al2 and A13. He explained that Koch Refining Company bought Southwestern Refining and is asking the city to annex Tracts All and Al2. With regard to Tract A13 (which is owned by Amerada Hess), Mr. Utter said there is a provision in the city's industrial district contract that if a company did not join in a buy-out proposal and/or did not sign an industrial district contract, then the city would move forward with annexation. City Manager Garza said that unless the Council had any objections, the Phase IV annexation proposal would contain Tracts A5, A6, A7, A9, A10, All, Al2, and A13. Responding to Mrs. Longoria, Mr. Utter said staff felt it was appropriate to proceed with the annexation of Tract A9 because it is not yet developed but it has potential to do so. In reply to Mayor Rhodes, Mr. Utter said the Phase IV annexation would have the following schedule: advertised in the newspaper on November 3, 1995; Planning Commission public hearing Minutes Regular Council Meeting October 24, 1995 Page 18 on November 15; City Council public hearing on November 21; first reading of the ordinance on December 12; and the second reading on December 19. In response to Mrs. Longoria, Mr. Utter said the city's policy is that a developer supplies water to a subdivision, while the city may participate in oversizing of water lines. Replying to Council Member Heldenfels, Mr. Utter said the annexation of the proposed tracts should have a positive economic effect. He added that with regard to Tract A8, even if state funds were not available to assist the residents of that tract, staff would still recommend annexing it because the city has a responsibility to meet the needs of residents in its extraterritorial jurisdiction to the greatest extent possible before a health problem were to occur or worsen. Council Member John Longoria asked about Tract A13, and Mr. Utter said the Texas Natural Resource Conservation Commission has ruled that the tanks owned by Amerada Hess in that tract have caused the plume of underground hydrocarbons in the Oak Park area. He added that if that tract is annexed, the city will gain an additional 40% of Amerada Hess's taxes and the company would fall under all of the city's regulations regarding building and zoning codes. In response to Mr. Martin, City Attorney Bray said that the first reading of the annexation ordinance could not be held on the same day as the public hearing because the public hearing has to be held a certain period of time before action is taken. Mr. Martin suggested that an item clarifying the staff s recommendation for Phase IV be placed on the agenda for the October 31, 1995 Council meeting. City Manager Garza said that also during the October 31 meeting, there will be presentations on the outlet mall project, the city's health insurance bid process, and Phase II of the Trans -Texas Water Study. There will also be the first reading of a concession agreement at the airport. * * * * * * * * * * * * * In her report, Mayor Rhodes said that in the tragedy of the Selena Quintanilla-Perez murder and subsequent trial of Yolanda Saldivar, one bright point with regard to the city was the outstanding performance of city employees. The Mayor then called for Council concerns and reports. Council Member Martin asked that a schedule be prepared of upcoming issues, including the Garwood water supply option. Council Member Black said a citizen has noted that there have been many wrecks occurring on Staples and Booty streets. Council Member John Longoria requested information about the bid dates on the health Minutes Regular Council Meeting October 24, 1995 Page 19 insurance. Mr. Garza said he would provide a schedule. Mr. Longoria said there are several apartment complexes in his district which have been marred by graffiti and where people have dumped old furniture in the dumpsters. Mr. Garza said he will follow up on that issue. Council Member Heldenfels requested a list of city employees who are authorized to have second jobs. Responding to a question from Mr. Heldenfels, Mr. Garza said fees collected for outside city limits water lines go into the Combined Utilities Fund, which consists of gas, water, and wastewater. He added that there are some indentures because of the city's outstanding debt that pledges the city's revenues to retire those bonds. Mr. Heldenfels also requested information regarding moving vehicle accident claims. Council Member McNichols referred to a workshop in Harlingen of the American Desalting Association, the Texas Water Development Board and the American Waterworks Association. He asked that a response that was prepared by Mr. James Dodson, Regional Water Director, be forwarded to the rest of the City Council for their information. Mayor Rhodes called for petitions from the audience, and there were none. There being no further business to come before the Council, Mayor Rhodes declared the Council meeting adjourned at 6:10 p.m. on October 24, 1995. * * * * * * * * * * * **