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HomeMy WebLinkAboutMinutes City Council - 01/30/1996I 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 January 30, 1996, which were approved by the City Council on February 13, 1996. WITNESSETH MY HAND AND SEAL, this 13th day of February, 1996 Armando Chapa City Secretary SEAL MINUTES. CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting January 30, 1996 2 p.m. PRESENT Mayor Mary Rhodes Mayor Pro Tem Dr. David McNichols Council Members: Dr. Jack Best Betty Black Tony Heldenfels Betty Jean Longoria ABSENT Melody Cooper John Longoria Edward Martin City Manager Juan Garza Assistant City Attorney Alison Gallaway City Secretary Armando Chapa 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 Best. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Rhodes called for approval of the minutes of the regular Council meeting of January 23, 1996, and there being no corrections, she proclaimed them approved as presented. * * * * * * * * * * * * * Mayor Rhodes recognized the employees retiring from the City in the month of January 1996, as follows: Mr. Jose Cantu, Water Department, 32 years of service; Mr. Valentino Medina, Building Inspection Department, 13 years; Mr. Orlo Peterson, Aviation Department, 27 years; Mr. Ronald Strahlendorff, Wastewater Department, 25 years; Ms. Dorothy Terry, Wastewater Department, 17 years; and Police Capt. Wallace Crisp, 38 years. ************* Minutes Regular Council Meeting January 30, 1996 Page 2 Mayor Rhodes opened discussion on Item 2, wastewater facilities implementation plan. Mr. R.H. Shackelford, Director of Engineering Services, explained that in 1985 the Council approved an engineering services contract with the joint venture of Brown and Caldwell/Freese and Nichols Inc. to conduct a study of the wastewater facilities requirements in the Oso -Greenwood service area through the year 2025 and to recommend a master plan for its development. The master plan contained a number of recommendations, including that the Oso -Greenwood service areas be reconfigured to encompass a third service area, which was referred to as the Southside service area. The master plan also recommended that a Southside Wastewater Treatment Plant with an ultimate capacity of 12 million gallons per day (MGD) be built in the area of Yorktown and the Oso Bridge crossing. Mr. Shackelford reviewed other aspects of the master plan, and he noted that a number of the assumptions in that study have not materialized due to changed conditions, including a slower -than - expected growth in the southside; a lack of support for expansion of the Oso Wastewater Treatment Plant; a new proposal to optimize the city's freshwater resources by diverting effluent to the Nueces Estuary; and concern regarding the extra cost of operating an additional wastewater treatment plant. Based on those conditions, staff recommended --and the Council approved --a capital improvement project to restudy how the wastewater improvements might best be implemented in the Greenwood -Oso -Southside service areas. And on the day's agenda, staff was recommending that the city hire Urban Engineering (with Black & Veatch as a sub -consultant) to conduct that study. Council Member McNichols asked how the city would provide additional treatment capacity to the southside area if a large amount of growth did occur there. Mr. Shackelford replied that it would be easier to carry wastewater by gravity as far as possible and then pump it the rest of the way first to the Greenwood plant for treatment with additional pumping to the Allison plant. Dr. McNichols also asked about the status of the pilot project to divert treated wastewater into the Nueces Estuary. Mr. Shackelford explained that the city is in the permitting process and the goal is to evaluate the impact of the effluent on the estuarine environment. In response to another question from Dr. McNichols, Mr. Shackelford said the city is faced with the immediate need of providing for additional treatment in the southside area, while the study itself will determine whether or not it is economically feasible to move wastewater toward the Greenwood plant. The ultimate decision to move effluent to the Allison plant will have to take into account the results of the diversion pilot project. Mr. Shackelford also briefly discussed parallel wastewater lines. Dr. McNichols asked to be kept informed about the wastewater issue. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: Minutes Regular Council Meeting January 30, 1996 Page 3 2. M96-02� Motion authorizing the City Manager to execute the contract for engineering services for the Oso/Greenwood Service Areas: Wastewater Facilities Implementation Plan with Urban Engineering for a fee not to exceed $190,300. The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, and McNichols voting "Aye"; Cooper, J. Longoria, and Martin absent. ************* Before opening discussion on Item 3, Mayor Rhodes read a proclamation for Black History Month in February, which was received by Ms. Lena Coleman, president of the local chapter of the National Association for the Advancement of Colored People. She was joined by other members of the local black community. The Mayor then opened discussion on Item 3, Greenwood Drive improvements. Mr. Shackelford said the Greenwood Drive improvement project extends almost two miles from South Padre Island Drive to Saratoga Boulevard, and it serves the Los Encinos School and a number of residential areas. It was originally included in the 1986 bond program. The project will convert the existing two-lane road with ditches on each side into a five -lane road with curbs and gutters and underground drainage; street lights and signalization will be carried out under a separate contract. Mr. Shackelford said the roadway construction is being funded through the Metropolitan Planning Organization, in which the Texas Department of Transportation (TXDOT) pays 80% of the roadway and contiguous drainage costs and the city pays 20%. In addition, the city must pay the cost of all right-of-way acquisitions, major off-site drainage, relocation and the adjustment of utilities, and the provision of utility extensions to accommodate future growth. The total cost to the city will be $3,068,824.35, of which $30,000 has previously been paid for preliminary engineering work. He added that TXDOT had awarded the contract to Haas -Anderson Construction Company, which is ready to begin working on the project; the projected completion date is late 1997. Responding to Council Member McNichols, Mr. Shackelford said that the city's cost has increased since the initial estimate in the capital improvement program. He said the primary reason for the increase was because the city did not have the final design parameters and the alignment of the road, and staff was estimating what the cost might be. In reply to Council Member Black, Mr. Shackelford said the project would include sidewalks. Minutes Regular Council Meeting January 30, 1996 Page 4 In response to Council Member Betty Jean Longoria, Mr. Shackelford commented on related projects that would be included in the five-year capital improvement plan. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 3. ORDINANCE NO. 022478 Ordinance authorizing the City Manager or his designee to execute an amendment in the amount of $3,038,824.35 for the City's estimated share of engineering, construction, and utility costs associated with the improvements to Greenwood Drive from Padre Island Drive (S.H. 358) to Saratoga Boulevard (S.H. 357), to an escrow agreement for $30,000 with Texas Department of Transportation (TXDOT) authorized by Resolution No. 021949. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, and McNichols voting "Aye"; Cooper, J. Longoria, and Martin absent. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 4, Texas State Aquarium financing. City Manager Garza explained that the city has been involved in the aquarium from its inception, including land acquisition, design, construction and parking improvements, for a total city investment of approximately $16.4 million. He said the increase in the hotel/motel sales taxes since the aquarium opened indicate its popularity as a tourist attraction. He said it is important to keep adding new exhibits in order to continue to draw visitors. Mr. Garza noted that the aquarium refinancing proposal has to be structured a certain way. The proposal calls for the city to buy out assets in the aquarium, which he described using visual aids. When the transaction is completed, the city would own everything in the aquarium except the movable equipment. He said the proposed sale of certificates of obligation consists of: purchase of assets ($2,546,817), new attractions ($500,000), capital improvements to existing facilities ($925,000), and design costs for Phase II ($210,000), which equals $4,181,817. The estimated bond issue cost is $83,600 for a total of $4,265,417. Mr. Garza explained that the purchase of the aquarium's assets by the city allows the aquarium to utilize the bonds to refinance their private debt while at the same time allowing the city to use those monies for a bona fide public purpose. In addition, the city is specifying that the capital improvements to existing facilities be implemented over a period of a few years in order to maintain some monies in reserve. Minutes Regular Council Meeting January 30, 1996 Page 5 Mr. Paul Pearson, Chairman of the Texas State Aquarium, reiterated the city's ongoing partnership with the aquarium. He discussed the proposal, noting that the first portion of the bonds is intended to retire $2.68 million of private financing, which would significantly lower the interest rate the aquarium is paying and would reduce its overall debt service by $100,000 a year. Mr. Pearson went on to describe in more detail how the bond monies would be utilized. Mr. Garza said that after reviewing the aquarium's financial information, he felt that it generated enough income to support payment of the debt. In response to Council Member Heldenfels, Mr. Garza said the city does have the authority to undertake this financing proposal, which has been verified by the city's bond counsel. He assured Mr. Heldenfels that this is an appropriate use of public borrowing authority, and he added that he would provide more information regarding that issue. He said the money would be loaned to the city itself with the pledge of the aquarium's revenues to pay off that debt. Council Member McNichols commented on the difference between the financing for the aquarium and for the Lexington Museum on the Bay. Mr. Garza said that one reason the bonds for the aquarium were necessary was to create new exhibits, which in turn increases the revenue. Dr. McNichols questioned whether the city would be having to deal with the aquarium's financial issues for years to come. Responding to a question from Dr. McNichols, Mr. Garza said the city still owes about $8.3 million on the certificates of obligation from the Reinvestment Zone, and most of the $1.5 million in certificates of obligation that the city sold in 1989 for public parking at the aquarium. Mr. Garza reiterated the need to continue to attract new (and returning) visitors to the aquarium through new exhibits, and the importance of aggressive marketing of the city's tourist attractions by the Greater Corpus Christi Business Alliance. He added that it was important for staff to keep abreast of the aquarium's finances, since the city has made a significant investment into the aquarium. Dr. McNichols said he was willing to support the aquarium proposal because of the strong public support for the aquarium. He added that he did not think the city should undertake a similar proposal in the future without funds being pledged to cover additional debt. Council Member Betty Jean Longoria said she agreed with many of the concerns voiced by Dr. McNichols, while at the same time she recognized the investment the citizens and the city have made in the aquarium. She asked that a staff liaison be responsible for staying informed about the aquarium's activities. Mr. Garza said there are some requirements the city will impose, and he added that this proposal was the most prudent action for the city to take at this point in time. Mayor Rhodes called for comments from the audience. Mr. Pearson said the reason the aquarium is faced with such a challenge now is that it has Minutes Regular Council Meeting January 30, 1996 Page 6 retired $4.3 million in debt in five years under pressure from private lenders at very high interest rates. Since the aquarium's infrastructure is already in place, the new monies will go a long way toward improving the facility. Mr. Charles A. Nichols, 1547 Lea Lane, suggested that Texas A&M University -Corpus Christi acquire the Texas State Aquarium as a joint venture for marine biology studies. Mr. J.E. O'Brien, 4130 Pompano, objected to the aquarium proposal. He discussed the structure of the proposal as well as the city's debt, saying that this proposal was a transfer of private debt to public debt. Mr. Garza commented that the Council has been very clear about not extending the city's debt. He added that the annual debt payments have been decreased so that the burden to the citizens has been reduced by the city's refinancing of its debt. He also noted that all of the aquarium's assets the city will purchase will be appraised by an independent appraiser. Mr. Garza said staff will continue to review the aquarium's financial statements and he is confident the aquarium will be able to service this debt. Mr. Louis Lovelace, 1549 Casa Grande, said this transaction is a transfer of private debt to the public taxpayers, and he questioned whether this violated state law. Mr. Garza replied that the Texas Attorney General would not sign his name to an opinion allowing the city to issue these bonds if they were not in strict conformance with state and federal laws. Mr. R.J. Herschbach, 4650 Hakel, said the Constitution prohibits this proposal. He also quoted other provisions to support his objection to this proposal. Mayor Rhodes asked those people who were present in support of the aquarium to stand and be recognized. She said the city's bond counsel (McCall, Parkhurst & Horton) is one of the most respected in the state, and the Council and staff rely on their expertise. City Secretary Chapa polled the Council for their votes as follows: 4.b. M96-026 Motion to authorize the City Manager to purchase certain remaining assets of the Texas State Aquarium. The foregoing motion passed by the following vote: Rhodes, Best, Black, B. Longoria, and McNichols voting "Aye"; Heldenfels abstaining; Cooper, J. Longoria and Martin absent. 4.c. RESOLUTION NO. 022479 Resolution by the City Council of the City of Corpus Christi, Texas, directing publication Minutes Regular Council Meeting January 30, 1996 Page 7 of Notice of Intention to issue Combination Tax and Texas State Aquarium Revenue Certificates of Obligation, Series 1996; and resolving other matters related to the subject. The foregoing resolution passed by the following vote: Rhodes, Best, Black, B. Longoria, and McNichols voting "Aye"; Heldenfels abstaining; Cooper, J Longoria and Martin absent. * * * * * * * * * * * * * Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 5 through 12, and Council Members requested that Items 10 and 11 be withheld for discussion. City Secretary Chapa said that Council Member Black had filed two Disclosure Affidavits and would abstain from discussing or voting on Items 7 and 8. Mr. Chapa then polled the Council for their votes and the following were passed: 5. M96-027 Motion approving a supply agreement for elevator/escalator maintenance in accordance with Bid Invitation No. BI -0088-96 with Montgomery Kone, Inc., San Antonio, Texas based on the low bid of $43,560. The term of the contract will be 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. This service will be used by various departments and funds have been budgeted in FY 95/96. The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, and McNichols voting "Aye"; Cooper, J. Longoria, and Martin absent. 6. M96-028 Motion rejecting bids received under Bid Invitation No. BI -0075-96 for traffic sign sheeting, paint and toner based on lack of competition. The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, and McNichols voting "Aye"; Cooper, J. Longoria, and Martin absent. 7. 1v196-029 Motion awarding a construction contract in the amount of $128,200 to Black Brothers Construction, Inc. for the improvements to Ben Garza Gymnasium and T.C. Ayers Recreation Center. Minutes Regular Council Meeting January 30, 1996 Page 8 The foregoing motion passed by the following vote: Rhodes, Best, Heldenfels, B. Longoria, and McNichols voting "Aye"; Black abstaining; Cooper, J. Longoria, and Martin absent. 8. M96-030 Motion awarding a contract in the amount of $185,700 to Black Brothers Construction, Inc. for the expansion of Brooks Chapel Day Care Center. The foregoing motion passed by the following vote: Rhodes, Best, Heldenfels, B. Longoria, and McNichols voting "Aye"; Black abstaining; Cooper, J. Longoria, and Martin absent. 9. M96-031 Motion awarding a contract in the amount of $70,000 to Construction/Project Management, Inc. for the construction of a new ammonia measurement building at O.N. Stevens Water Treatment Plant. The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, and McNichols voting "Aye"; Cooper, J. Longoria, and Martin absent. 12. M96-034 Motion authorizing the City Manager or his designee to execute an agreement with Corpus Christi Independent School District/Zavala Elementary School to provide $39,952 from the FY 95 CDBG program for construction of a developmentally appropriate playground at 3102 Highland Street. The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, and McNichols voting "Aye"; Cooper, J. Longoria, and Martin absent. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 10, automatic transfer equipment for two water distribution system pump stations. Responding to Council Member McNichols, Mr. Shackelford said that currently, the Holly Road and Savage Lane Water Distribution System Pump Stations have two separate primary electrical feeders supplied by different Central Power and Light (CPL) substations that must be switched manually. The proposal is to install automatic primary electrical feed transfer equipment at those two pump stations to reduce the switching time to about 25 seconds. Minutes Regular Council Meeting January 30, 1996 Page 9 In reply to another question from Dr. McNichols, Mr. Shackelford said the city's Supervisory Control and Data Acquisition system senses when a power outage occurs and reports it to staff at the O.N. Stevens control center, who in turn contact CPL about the outage. Dr. McNichols asked if the manual switching system would still be available, and Mr. Shackelford said it would be. Mr. Garza emphasized the importance of keeping abreast of the city's water pressure. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 10. M96-037 Motion authorizing the City Manager or his designee to execute an agreement with Central Power & Light Company (CP&L) in the amount of $64,000 to install Automatic Primary Electrical Feed Transfer Equipment at Holly Road and Savage Lane water distribution system pump stations. The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, and McNichols voting "Aye"; Cooper, J. Longoria, and Martin absent. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 11, aquarium waterfront repairs. Responding to Council Member Black, Mr. Shackelford said the erosion of the waterfront is occurring from the water taxi landing up to Pearl Street; it does not exceed the waterfront of Elmo's Restaurant. Mrs. Black commented about the selection of Shiner, Moseley and Associates Inc. for the engineering services contract. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 11. M96-033 Motion authorizing the City Manager or his designee to execute an engineering services contract for Aquarium Waterfront Stabilization/Repairs with Shiner, Moseley and Associates, Inc. in the amount of $29,800 (Contract No. 5 Texas State Aquarium Infrastructure Improvements). The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, and McNichols voting "Aye"; Cooper, J. Longoria, and Martin absent. Minutes Regular Council Meeting January 30, 1996 Page 10 * * * * * * * * * * * * * Mayor Rhodes called for the City Manager's report. Mr. Garza said a public hearing on the proposed ordinance regarding adult businesses with undesirable secondary effects has been tentatively scheduled for the February 13, 1996 Council meeting. The Planning Commission is scheduled to hold its public hearing on the zoning aspects of that ordinance in March, if required. He also reported that maintenance on the Kiwanis Recreation Center is scheduled for the summer. Other items planned for the February 13 meeting include the award of the landfill contract to EMCON and expansion of the Whitecap Wastewater Treatment Plant. Mayor Rhodes announced that the March 12, 1996 Council meeting would not be held since six Council members are expected to attend the National League of Cities Congressional City Conference in Washington, D.C., at that time. The Mayor then called for Council concerns and reports. Council Member McNichols said he had been unable to attend a meeting held that day by the Greater Corpus Christi Business Alliance regarding the ozone issue and a flexible attainment agreement. Mayor Rhodes replied that the meeting was very encouraging. She said the representative from the Environmental Protection Agency (EPA) said that Corpus Christi needed to indicate in writing its intent to enter into a flexible attainment agreement with the EPA before the onset of the 1996 ozone season. In addition, that agreement needs to be specific for this area. The Mayor said that the EPA official also addressed possible changes in the overall air quality standards. Council Member Black said that in addition to industry and government entities working to lower ozone levels, it was up to the citizens to do their part as well. Mayor Rhodes noted that one of the city's ozone exceedences occurred because of environmental conditions from outside the city, not because of the fault of its citizens or industry. The Mayor emphasized the importance of establishing a flexible attainment agreement for the city. City Manager Garza pointed out that exceedences are measured on a calendar -year basis, not on a running three-year basis, and Corpus Christi currently has two exceedences. Dr. McNichols requested more information about the fee increases for the sign ordinances. Council Member Heldenfels asked about the status of the certification of funds for the city's contract with the Lavaca-Navidad River Authority (LNRA). Mr. Heldenfels suggested that rather than have City Attorney Bray write an opinion on the subject, outside counsel should write the opinion. Mr. Garza replied that he would provide the information that Mr. Bray had prepared on the LNRA contract. Council Member Best referred to a letter from a company regarding the control of odor and Minutes Regular Council Meeting January 30, 1996 Page 11 grease in disposal systems. He also commended everyone associated with the recent announcement about the area's military bases, including Mr. Loyd Neal, Chairman of the South Texas Military Facilities Task Force, U.S. Congressman Solomon Ortiz, U.S. Senators Kay Bailey Hutchison and Phil Gramm, and Mr. Gary Bushell of the Greater Corpus Christi Business Alliance. Mrs. Black requested more detailed information about the kinds of police calls that occur at topless bars versus regular bars. Council Member Betty Jean Longoria commented on a letter sent by 13 -year-old Ramon Garza about curfew suggestions. Mr. Garza replied that he has already forwarded a copy of that letter to Police Chief Pete Alvarez, and staff will consider the student's suggestions. Responding to a question from Mrs. Longoria, Mr. Garza said some firefighters have been complaining about the quality of the Fire Department's brush trucks, which he said is the oldest equipment in that department. ************* Mayor Rhodes called for petitions from the audience. Mr. J.E. O'Brien said the city is $30 million deeper in debt as a result of the city's refundings, and the time for the debt repayment has also been extended. He said he hoped the city was attempting to discover the amount of the secret settlement between Westinghouse and CPL for the benefit of the ratepayers in this city. Responding to a question from Mr. O'Brien, Mr. Garza said City Attorney Bray had prepared information regarding the certification of funds for the LNRA contract. Mr. Charles Nichols referred to the recently approved agreement with Humana Insurance Company to provide group health insurance benefits for city employees. He said employees should have the right to use the pharmacy of their choice. Mayor Rhodes asked if there was any way to alter the contract with Humana, and Mr. Garza said the city has already entered into the contract, but he would investigate it. He added that the price for prescription drugs in this proposal is $300,000 less per year than the city's previous proposal. The Mayor asked that Mr. Pat Alba, Director of Risk Management, talk with Mr. Nichols about his concerns. Dr. McNichols pointed out that he and Mayor Rhodes did not participate in the discussion or vote on the health care proposal. There being no further business to come before the Council, Mayor Rhodes declared the Council meeting adjourned at 3:50 p.m. on January 30, 1996. ************