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HomeMy WebLinkAboutMinutes City Council - 10/31/1995I 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 31, 1995, which were approved by the City Council on November 14, 1995. WITNESSETH MY HAND AND SEAL, this 14th day of November, 1995 Armando Chapa City Secretary SEAL oco''''') MINI JTFS CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting October 31, 1995 2 p.m. PRESENT Mayor Mary Rhodes Mayor Pro Tem John Longoria Council Members: Dr. Jack Best 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 Mayor Rhodes called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Pastor Alston Kirk, Trinity Lutheran Church, following which the Pledge of Allegiance to the flag of the United States was led by Council Member Black. 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 24, 1995, and there being no corrections, she proclaimed them approved as presented. *Council Member Heldenfels arrived at the meeting. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 1, a presentation on Phase II of the Trans -Texas Water Study. Mr. James Dodson, Regional Water Director, noted that Phase I of the study, presented in 1993, examined 16 potential alternatives for a future water supply. Following a period of public comment, 22 alternatives were considered during the second phase of the water study and an implementation plan is being suggested. Mr. Dodson then introduced Mr. Ken Choffel, Senior Vice President of HDR Engineering of Austin, which has a long history of water -planning studies for the Nueces River basin area. Mr. Minutes Regular Council Meeting October 31, 1995 Page 2 Dodson added that Naismith Engineering, a local engineering firm, and Paul Price Associates were also members of the consultant team. Mr. Choffel explained that the objective of the Trans -Texas Water Program was to develop a regional water supply plan for each of the major areas in Texas which need additional water supplies. Integral to this program are regional coordination as well as the development of options which are cost-effective and environmentally responsible. He said that several state agencies involved in permitting water projects are also involved in the Trans -Texas study, including the Texas Water Development Board, Texas Natural Resource Conservation Commission, Texas Parks and Wildlife, and the Coastal Coordination Council. Mr. Choffel noted that the other phases of the study are: Phase III involving the permitting and preliminary design work on the recommended projects; Phase IV, acquiring the property and the final design work; and Phase V, construction and operation of the projects. He said that following negotiations with the state regarding the city's agreed order for the reservoirs, the area's growth could indicate a need for additional water supplies by the year 2007. He said the 22 different water supply alternatives that were studied included the construction of five reservoirs, nine pipeline facilities, and eight miscellaneous options. Those alternatives were then classified into four groups: Group 1 -dependable, permanent and affordable alternatives; Group 2 -stand by alternatives; Group 3 -potentially dependable, permanent and affordable alternatives; and Group 4 -potential future alternatives. In order to determine how to group the alternatives, Mr. Choffel said several criteria were used, including cost (it was determined that the two most expensive alternatives were desalting ocean water and dredging Lake Corpus Christi) and environmental impact. Mr. Choffel then went on to describe the Group 1 alternatives: modification of the Choke Canyon/Lake Corpus Christi reservoir operating policy to incorporate the 1995 agreed order; accelerated and additional municipal conservation; industrial water conservation; Lake Texana pipeline; purchase and diversion of Garwood water rights via the Garwood/Colorado pipeline. He pointed out that all of the Group 1 alternatives are included in two potential integrated implementation plans (Plan A and Plan B). The only difference between the two implementation plans is in which of the Group 3 alternatives may be used to supply the remaining projected water shortfall One of the major concerns being raised, continued Mr. Choffel, is the potential impact on water rates to the customer, which he described. He also described different aspects of water quality, pointing out that Lake Texana water is a higher quality than water from the city's reservoir system, and he discussed recommendations regarding implementation issues. Responding to Mayor Rhodes, City Manager Garza said some of the proposed measures, Minutes Regular Council Meeting October 31, 1995 Page 3 including the conservation measures, could be presented first to the appropriate city committees and then brought to the City Council for action as necessary. Council Member McNichols pointed out that the initial step in the integrated water supply plan has already been taken through the modification of the agreed order, resulting in a slight delay in when the area's water demand would exceed its supply. In reply to a question from Dr. McNichols, Mr. Choffel stated that the operating plan of Lake Corpus Christi should not be modified until a sedimentation study is completed. Dr. McNichols also briefly addressed the cost of a water pipeline from Lake Texana, the cost of dredging Lake Corpus Christi, and the quality of Lake Texana water. Responding to Council Member Heldenfels, Mr. Choffel estimated that a pipeline from Lake Texana would contain a right-of-way of 500 to 600 acres, and included in the cost of the pipeline are plans to tunnel under major rivers that the pipeline will cross. Council Member Martin questioned the demand projections in the water study. Mr. Choffel replied that those projections are dry -year demands, even though this area had not recently experienced severe drought conditions. He added that every few years city officials should track what the service area's actual water usage is, adjust the figures accordingly for drought conditions, and then make new demand projections. Mr. Martin pointed out that the city now has four to five years of actual demand statistics that are lower than the Texas Water Development Board's statistics, and the demand projections should now be adjusted. He added that a difference of one to two years or more in demand projections has a significant impact on interest rate projections for financing the projects. A discussion ensued. Responding to another question from Mr. Martin, Mr. Choffel said the cost of treating raw water from Lake Texana was included in the two integrated plans in the study. Mr. Martin also questioned the study's recommendation that the Garwood water pipeline not be used until the year 2029. Mr. Choffel said that assuming the Garwood pipeline were already constructed and that water could begin to be used immediately, it could reduce the demands on the area's reservoir system and somewhat affect the levels of Lake Corpus Christi and Choke Canyon, but the problem of evaporation would still exist. Mr. Martin then asked if there was any technology available to reduce evaporation, and Mr. Choffel responded that the Bureau of Reclamation has studied that problem for years, but a cost- effective, environmentally acceptable solution has not yet been found. In reply to Mr. Martin, City Attorney Bray said the city's agreement with the Lavaca- Navidad River Authority (LNRA) contains a provision that recognizes that there is an intention to store Colorado River water, which will be negotiated in the future. Mr. Martin said that issue should Minutes Regular Council Meeting October 31, 1995 Page 4 be negotiated before the city exercises its option with LNRA. Regarding future water utility costs, Mr. Garza said he estimates that the Lake Texana pipeline could increase water rates from 18% to 25%, or approximately $120 million. Mr. Choffel added that the report also recommends conducting a rate study to determine the distribution of costs and timing of the financing. Council Member Best said the Port of Corpus Christi Authority is in a position to form a water district and, if so, they could sell water bonds to industry as a form of financing. He also questioned the timing of the permitting requirements. Mr. Choffel replied that the permitting procedure has already begun, and generally water supply pipelines do not encounter permitting problems since they are only carrying raw water and not toxic substances. Dr. Best asked if the study addressed the question of building a large enough pipeline to eventually supply water south of Corpus Christi's service area, and Mr. Choffel said the study did not include those projections. Mr. Choffel added that it would probably take two to three years for the city to obtain all of the necessary permits for the pipeline. Dr. McNichols pointed out that Congressman Solomon Ortiz will be introducing legislation to restructure the Choke Canyon debt, and if that legislation passes, it will be a tremendous asset in terms of financing additional water supplies. He also emphasized the importance of long-term water planning and the inevitability of droughts reoccurring. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 2, a presentation on the factory outlet center project. Mr. Tom Utter, Group Manager for Development Services, introduced Mr. Stan Samberg, of Stan Samberg Associates, and Mr. Jeff Byrd, of Charter Oak Partners, who is the project manager. Mr. Samberg referred to an updated site plan of the factory outlet center, saying that the delay in receiving the executed leases from the various manufacturers had been anticipated when the project was initiated. Replying to Mayor Rhodes, Mr. Samberg said that as soon as the developers receive 105,000 square feet of actual executed leases signed, then they can begin construction. In the meantime, the developers have conducted several necessary environmental studies. Mr. Byrd said that this project is Charter Oak Partners' number one priority in 1996. He added that his company is in the midst of a merger with Factory Stores of America, which will make them the largest outlet developer in the country with over 4 million square feet of outlet retail space. In response to Council Member McNichols, Mr. Byrd said as the outlet industry continues Minutes Regular Council Meeting October 31, 1995 Page 5 to become more and more sophisticated, the leasing process has become more time consuming and complicated. Council Member Martin asked for an estimate on when construction might begin, and Mr. Byrd replied during the second quarter of 1996. In reply to Council Member Cooper, Mr. Byrd explained that the developers, in anticipation of a long leasing process, included long term "drop -dead" dates on the leases of the tenants who have already signed their contracts. Council Member Betty Jean Longoria pointed out that the city has construction projects that cannot begin until the leasing requirements are met, in addition to many citizens who are awaiting the opening of the factory outlet center. Mr. Byrd reiterated that the developers hope to open these stores as quickly as possible. Responding to Council Member Best, Mr. Utter said the city's contract with Samberg Associates has a June 1, 1996 date at which time the Council may terminate the contract. * * * * * * * * * * * * * Mayor Rhodes said that since the presentation on the city's health insurance bid process (Item 3) would most likely involve discussion, she and Council Member McNichols would be abstaining from that discussion. The Mayor then called for a five-minute recess, after which Mayor Pro Tem John Longoria presided over the discussion of Item 3. Mr. Patricio Alba, Safety and Risk Manager, used visual aids to describe changes that have occurred in the health insurance industry, including a rapid increase in the participation of health maintenance organizations (HMOs). Mr. Alba explained that the city is requesting proposals for health care benefits because the contracts are due to be renewed or new contracts issued. In addition, city officials wanted to determine if there were other ways in which the city could save money in its health care benefits. Mr. Alba said the city is sending out requests for proposals (RFPs) to several entities: provider networks, third -party administrators, insurance carriers, and brokers and agents. He noted that the RFPs were sent out October 9, 1995 and the deadline for submissions is November 6, 1995. Following a complete evaluation by city staff of all the proposals, a recommendation will be made to the City Council during their December 12, 1995 meeting. He pointed out that this is a proposal and not a bid, and staff will not necessarily be considering the lowest priced proposal, but rather which one will be most advantageous to the city. Minutes Regular Council Meeting October 31, 1995 Page 6 He said two options will be considered: whether to continue the city's current self-insured plan (in which a network and third -party administrator are selected, and reinsurance purchased), or whether to adopt the fully insured option (with proposals being submitted from insurance carriers and agents and brokers). Mr. Alba said the RFPs specify that under the self-insured option, 60% of the weight of the proposal will be given to the network that is selected (size, comprehensiveness, and discounts offered); 25% consideration will be given to the experience of the third -party administrator; and 15% for the cost of reinsurance. Under the fully insured option, consideration will be given in the following way: cost to the city (premiums), 50%; network (size and discounts offered), 15%; cost to employee (out-of-pocket expenses), 15%; claims administration (experience/staffing), 15%; and mental/nervous benefits, 5%. Mr. Alba then discussed the advantages and disadvantages of both of the self-insured and fully insured options, and he noted that the city has been self-insured since 1991. Responding to Council Member Martin, Mr. Alba said the term of the contract would be for four years at $10 million a year. Mr. Martin said it was his understanding that being self-insured was much less expensive than being fully insured. Mr. Alba said that staff decided to request proposals on both options because several insurance carriers had indicated they could offer a less expensive program to the city. In reply to another question, Mr. Alba said there are no agents or brokers of record representing the city with regard to the RFP process. Mr. Martin also asked if certain aspects of a carrier's proposal could be exempted from Open Records Act regulations, and City Attorney Bray said staff believed it could. Responding to another question from Mr. Martin, Mr. Alba said there are some binding contracts with police and fire personnel, which the RFPs indicated, although those requirements are subject to change, particularly since the city is in the process of negotiating the police contract. Mr. Alba went on to say that the health benefits contract expires on March 1, 1996, but staff would like to have the contract awarded in December since the city holds open enrollment for employees' health benefits in January. In reply to Council Member Black, Mr. Alba said the current contract contains an HMO option. Less than 200 employees utilize that option, and the city will no longer be required by law to offer it under its self-insured plan. He added that the internal administrative cost under the self- insured plan is minimal, but the external administrative cost is substantial. Mr. Garza also noted that as a self-insured entity, the city has developed expertise in managing the cost of its program. Mr. Martin raised the question of the city's obligation as a tax -paying institution and city government to support institutions within this community; he noted that that is not part of the evaluation criteria. Mr. Alba then briefly described the process by which staff developed the request for proposals, and a brief discussion ensued. Mr. Martin suggested that the Administrative Analysis Minutes Regular Council Meeting October 31, 1995 Page 7 Committee also review the proposals before they are considered by the whole Council. Responding to Council Member John Longoria, Mr. Alba said that all of the city's employees are members of the self-insured program except for the less than 200 who are members of the Humana HMO, which he pointed out is more expensive than the self-insured plan. Mr. Longoria also asked about some potentially confidential aspects of the insurance carriers' proposals, and Mr. Bray reiterated that staff has told the carriers that they need to designate which aspects they wish to keep confidential. If a question arose, staff would submit it to the state Attorney General. In reply to another question from Mr. Longoria, Mr. Alba noted that the largest portion of health care costs is hospitalization, and one important aspect to consider is the amount of discounts that will be offered by hospitals. Mr. Longoria pointed out that the Council members who serve on the Administrative Analysis Committee are himself, Mrs. Black, Mrs. Longoria and Dr. McNichols, who will again abstain from discussing the health care benefits proposals. * * * * * * * * * * * * * Mayor Pro Tem Longoria called for a five-minute recess. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 4, Phase IV annexation program amendment. Council Member Betty Jean Longoria said she had received several calls from residents concerned about the proposed annexation of land south of FM 624, and she questioned the reason for that annexation. Group Manager Utter said annexation should not be recommended just on the basis of the amount of revenue it would generate or on costs that would be incurred; rather, annexation should be based on theoretical planning concerns. He pointed out that there will always be people who oppose any particular annexation. Mr. Utter then referred to a map of Tract A6, which is being recommended for annexation and is primed for development, and Tract A9, which already contains areas of illegal development. In reply to Council Member McNichols, Mr. Utter said the City Council cannot contractually disallow its police power (i.e., annexation) except in an industrial district. With regard to this annexation program, Mr. Utter said staff has had many discussions with several residents of Tract Al, many of whom hired an attorney to represent them. They argued that they were not ready to be annexed at this time because of problems associated with the River Acres Water Supply Corporation, and they asked that annexation be postponed for approximately five years. Mr. Utter said that other than recommending that Tract Al not be annexed at this time, staff could not make a commitment to any time frame for a possible future annexation. Minutes Regular Council Meeting October 31, 1995 Page 8 Council Member Martin said he did not think there was a valid reason to annex Tract A9, but he was not opposed to it being considered and discussed during a public hearing. Mr. Martin also questioned the amount of tax revenue being generated in Tract A5, and Mr. Utter said staff would look into that and provide a report. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 4. M95-319 Motion to amend prior motion directing City staff to pursue Phase IV of the 1995 Annexation program by reducing area under consideration FROM eight tracts of land in the Northwest totaling approximately 6,000 acres TO five tracts of land in the Northwest totaling approximately 3,000 acres and three tracts of land involving Industrial District Agreements totaling approximately 135 acres. 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 discussion on Item 5, Capital Budget and Capital Improvement Program. The Mayor then referred to an alternate motion to amend, which she briefly described. Council Member Martin suggested that the projects being considered be prioritized within the available funding. Council Member McNichols pointed out that there are some drainage projects which need to be constructed even though the drainage utility has not yet been established. City Manager Garza said there are basically two options: to push back some capital projects associated with the water utility in order to fund drainage projects out of the water fund; or to temporarily fund the drainage projects out of the water fund reserve, subject to reimbursement once the drainage utility is established. Dr. McNichols emphasized that the drainage projects are important, necessary projects and funding for them needs to be found. Mayor Rhodes called for comments from the audience. Mr. J.E. O'Brien, 4130 Pompano, continued to object to what he referred to as excessive use of certificates of obligation, and he referred to different aspects of the CIP program. Minutes Regular Council Meeting October 31, 1995 Page 9 Mayor Rhodes made the following altemate motion: a. In lieu of adopting the proposed 1996-2000 five-year Capital Improvement Program, the City Council accepts the City Manager's proposed 1996-2000 five-year Capital Improvement Program as a planning guide. b. The amount of the Capital Budget is changed from $60,859,000 to $56,224,000. c. Exhibit "A" is amended to delete the list of drainage projects totaling $4,635,000 from the Capital Budget. d. Exhibit "B" is amended to delete the drainage projects. Mayor Rhodes called for a voice vote on her alternate motion to amend, and it passed unanimously. City Secretary Chapa polled the Council for their votes as follows: 5.b. ORDINANCE NO. 022394 Accepting the City Manager's proposed 1996-2000 five year Capital Improvement Program as a planning guide, and approving the FY 1995-96 Capital budget in the amount of $56,224,000. 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." 5.c. ORDINANCE NO. 022395 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 second reading by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 5.d. ORDINANCE NO. 022396 Appropriating $1,393,171 from interest earnings in the Capital Improvement Fund and authorizing transfer of these funds into the General Obligation Debt Service Fund for the annual debt service payment. The foregoing ordinance passed on second reading by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, 13. Longoria, J. Longoria, Martin, and McNichols voting "Aye." Minutes Regular Council Meeting October 31, 1995 Page 10 Mayor Rhodes opened discussion on Item 6, pump installation. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 6. M95-320 Motion awarding a contract in the amount of $459,050 to Jalco Inc. for the Arcadia Lift Station 16" PVC Wastewater Force Main and Horne Road Lift Station Pump Installation. 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 discussion on Item 7, youth sports field improvement project, in which two companies (Martin & Schmidt Construction and Progressive Structures Inc.) submitted identical low bids. In reply to Council Member Martin, Mr. Carl Crull, Group Manager for Public Works and Utilities, said that in his 16 years with the city there had never been a tie bid for a construction project. Mr. Crull added that there is no connection between the two local companies, and it is pure coincidence that the bids resulted in a tie. Mr. R.H. Shackelford, Director of Engineering Services, explained that the names of the two tieing bidders would be placed in a closed box, following which City Secretary Chapa drew one of the names --Martin & Schmidt Construction Company --which was awarded the bid. Mayor Rhodes called for comments from the audience, and there were none Responding to Council Member Betty Jean Longoria, Mr. Utter said there would be a small amount of Community Development Block Grant funding still available after the project is completed, which may be used to renovate restrooms. City Secretary Chapa polled the Council for their votes as follows: 7. M95-321 Motion awarding a contract in the amount of $124,000 to Martin & Schmidt Construction Company for construction of a new third baseball field and new lighting systems for two existing fields at the Greenwood/Home Youth Sports Complex. Minutes Regular Council Meeting October 31, 1995 Page 11 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 discussion on Item 8, airport concession contract. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 8. ORDINANCE NO. 022397 Ordinance authorizing the City Manager or his designee to execute a month-to-month lease not to exceed 12 months, beginning December 1, 1995 with Multirestaurant Management, Inc. to provide food and beverage services concession at the Corpus Christi International Airport in consideration of Multirestaurant Management, Inc. paying the City 15% of gross receipts on all alcoholic beverage sales and 10% on all nonalcoholic beverage and food sales. 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." * * * * * * * * * * * * * Mayor Rhodes opened the public hearing on the following zoning case: 9. Case No. 1095-1. Charles B. Teas: A change of zoning from "R -1B" One -family Dwelling District to "R-2" Multiple Dwelling District on Arcadia Subdivision, Block 3, Lot 8, located between South Staples Street and Florida Avenue, at Ohio Street. Mayor Rhodes said the Planning Commission and staff recommended approval. No one opposed the zoning application. Council Member Best made a motion to close the public hearing, seconded by Council Member Heldenfels, and passed unanimously. City Secretary Chapa polled the Council for their votes as follows: ORDINANCE NO. 022398 Amending the Zoning Ordinance upon application by Charles B. Teas by changing the Zoning Map in reference to Arcadia Subdivision, Block 3, Lot 8, from "R -1B" One -family Dwelling District to "R-2" Multiple Dwelling District; providing for publication. Minutes Regular Council Meeting October 31, 1995 Page 12 An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye"; Martin absent. * * * * * * * * * * * * * Mayor Rhodes opened the public hearing on the following zoning case: 10. Case No. 1095-2. Watkins Temple: A change of zoning from "R -1B" One -family Dwelling District to "B-1" Neighborhood Business District on Carver Addition No. 2, Block 11, Lots 10 and 11, located on the north side of Rogers Street, approximately 90 feet east of Washington Street. Mayor Rhodes said the Planning Commission and staff recommended denial of the "B-1" District, and in lieu thereof, approval of a Special Permit for a church off-site parking lot subject to five (5) conditions. No one opposed the zoning application. Council Member Best 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: ORDINANCE NO. 022399 Amending the Zoning Ordinance upon application by Watkins Temple by granting a Special Council Permit for an off-site parking lot subject to five (5) conditions on Carver Addition No. 2, Block 11, Lots 10 and 11; providing for publication. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye"; Martin absent. * * * * * * * * * * * * * Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 11 through 15, and Council Members requested that Item 13 be withheld for discussion. City Secretary Chapa polled the Council for their votes and the following were passed: 11. M95-322 Motion approving a supply agreement for approximately 4,125 tons of liquid aluminum sulfate in accordance with Bid Invitation No. BI -0259-95 with Bay Chemical & Supply Co., Minutes Regular Council Meeting October 31, 1995 Page 13 Odem, Texas based on low bid for an estimated annual expenditure of $217,593.75. 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 chemical will be used by the Water Department for treatment of our water supply. Funds have been budgeted 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." 12. M95-323 Motion approving a supply agreement for approximately 186 lubricated plug valves, ranging in size from 1" - 6" in accordance with Bid Invitation No. BI -0308-95 with The EADS Co., Corpus Christi, Texas based on low bid and low bid meeting specifications for an estimated annual expenditure of $38,976.64. The term of the agreement shall be for twelve months with an option to extend for up to an additional twelve months subject to the approval of the supplier and the City Manager or his designee. Funds are budgeted in FY 95-96 by the Gas Division. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 14. M95-325 Motion authorizing the City Manager or his designee to execute Change Order No. 1 with Eagle Contracting Corporation in the amount of $120,000 for a revised contract amount of $6,709,500 for modifications to Filters 1-12 at the 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." 15. ORDINANCE NO. 022400 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 expense. 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 October 31, 1995 Page 14 Mayor Rhodes opened discussion on Item 13, water meter relocations. In reply to Council Member McNichols, Group Manager Crull said this project requires the services of a licensed master plumber, and although there are some city staff members who could qualify, there may be concerns about the city going into competition with local plumbing companies. The timing of the project (completing several residences at one time) is also important. Council Member Martin questioned the priority of this project. Mr. Crull pointed out that there are some water mains that are being underutilized because there is no mechanism to force residents to switch from the older, smaller water lines to the new lines. Use of the new lines would result is an upgrade in service and water pressure to the customer while relieving the city's maintenance of old water lines located in easements. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 13. M95-324 Motion awarding a contract in the amount of $248,000 to Rhode Construction Company for the Villa Gardens/Westland Subdivision: Water Meter Relocations - 1995. 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 announced the closed session pursuant to Texas Government Code Section 551.071 regarding Steven Lowe v. John Gabriel Casares, et al, Civil Case No. C-94-234, U.S. District Court, Southern District of Texas, Corpus Christi Division. The Council went into closed session. The Council returned from closed session. * * * * * * * * * * * * * Mayor Rhodes called for the City Manager's report. Mr. Garza said U.S. Congressman Solomon Ortiz would be having a press conference on Saturday, November 4, 1995 in the Council Chambers to announce the introduction of legislation which would allow the prepayment of the Choke Canyon debt and transfer the title to the city. Mr. Garza added that there would be no Council meeting next week (November 7). Minutes Regular Council Meeting October 31, 1995 Page 15 Upon consensus of the Council, Mayor Rhodes announced that there would not be a Council meeting on Tuesday, December 26, 1995. She also said that the City Council would soon be voting on a slate of people to serve on the Drainage Utility Committee. The Mayor then called for Council concerns and reports. Council Member Martin asked if the Ethel Eyerly Senior Center parking lot had been completed, and Mr. Garza said it was. Mr. Martin also requested a summary of the city's water conservation plan. Council Member Black requested more information about the industrial district contracts, and reported very poor drainage on North Beach. Mr. Garza said he would provide a report on that drainage situation, citing the fact that one problem is high tides in that area. Council Member McNichols said the JFK Causeway also experienced flooding during the recent heavy rains, and he said some video documenting those occurrences (non -tropical storm flooding) could be shown to the appropriate state agencies to demonstrate the need to raise the JFK Causeway. Council Member John Longoria reported that the lights at the intersection of IH -37 and South Padre Island Drive are not working. Mr. Crull replied that those lights are maintained by the Texas Department of Transportation, and they are in the process of replacing that entire lighting system. Mr. Longoria also reported that he had received a parking ticket near One Shoreline Plaza, a portion of which is designated for parking for the Mexican Consulate. Mr. Garza replied that the city is in the process of posting larger street signs informing motorists that those spaces are reserved. Council Member Betty Jean Longoria requested a list of certified caterers at the Bayfront Plaza Convention Center. She said citizens on Mayfield Drive had reported driveway problems. Responding to Council Member Best, Mr. Crull said a test on City Hall to detect water leaks was conducted last week, but the results have not been received by staff. 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 6:05 p.m. on October 31, 1995.