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.
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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.
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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.
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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.
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