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HomeMy WebLinkAboutMinutes City Council - 03/05/1996I 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 March 5, 1996, which were approved by the City Council on March 19, 1996. WITNESSETH MY HAND AND SEAL, this 19th day of March, 1996 ando Chapa City Secretary SEAL 49\-° MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting March 5, 1996 2 p.m. PRESENT Mayor Mary Rhodes Mayor Pro Tem Dr. David McNichols Council Members: Dr. Jack Best Betty Black Melody Cooper Tony Heldenfels John Longoria Edward Martin ABSENT Betty Jean Longoria 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 Rev. E.F. Bennett (retired), following which the Pledge of Allegiance to the flag of the United States was led by Council Member Cooper. 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 February 27, 1996, and there being no corrections, she proclaimed them approved as presented. City Manager Garza introduced Ms. Bonnie Allin as the new Director of Aviation. Ms. Allin replaced Mr. George Hext, who retired at the end of February. * * * * * * * * * * * * * Mr. Jim Whatley, President of the Board of the Coastal Bend Alcohol and Drug Rehabilitation Center, thanked Mayor Rhodes for a letter she wrote on behalf of that organization to the Texas Commission on Alcohol and Drug Abuse (TCADA). Dr. Mike Tozer, Medical Director for the rehabilitation center's detox facility, said that on February 15, 1996, the detox unit was shut Minutes Regular Council Meeting March 5, 1996 Page 2 down due to lack of funding by the Texas Commission. Dr. Tozer explained why funds were needed to reopen the only indigent -accessible primary detox service in South Texas. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 3, drought contingency plan. Mr. James Dodson, Regional Water Director, explained that the Nueces River Basin, which supplies water to the Coast Bend area from the Choke Canyon/Lake Corpus Christi reservoir system, has experienced droughts over the last 80 years, most recently during 1983-84, which was the last time drastic steps were taken to reduce demand and increase emergency supplies. Mr. Dodson described the criteria used in determining a drought: meteorological (precipitation, stream flow, groundwater levels, and soil moisture) and water supply (reservoir storage). Using the amount of stream flow as a criteria for determining drought, Mr. Dodson pointed out that the cumulative stream flow in the three-year period 1993-95 is the lowest of any three-year periods since 1934, which indicates that the Nueces River watershed is in drought conditions. He also discussed the current reservoir system storage levels and the area's annual water use, which he said is one of the most conservative in the state. Mr. Dodson then discussed long-term and short-term drought management strategies, including using water more efficiently over the long run and keeping up with increasing demand, as well as restricting water use and tapping emergency water supplies when necessary. He also described the four conditions in the 1987 water conservation and drought contingency plan, including the trigger levels for each condition. Referring to one of the staff's recommendations on the subject, Council Member Heldenfels said he thought the current trigger level for Condition I of 28% of total system capacity was too low; he suggested the trigger be 40%. Mr. Dodson said staff is recommending raising the trigger level to 35%, with further consideration to be given if the Council approves the establishment of the Water Conservation Advisory Committee. In response to Council Member Best, Mr. Dodson said it is possible that some natural gas companies will be asked to submit proposals to transport water from Lake Texana to Corpus Christi in existing pipelines. He noted that the Lavaca-Navidad River Authority (LNRA) currently has a 52" transmission main from Lake Texana to Point Comfort, and some gas pipelines intersect the main there. Mr. Dodson added that as long as the city had the state permit to use the Lake Texana water in this region, the city could consider any means of conveyance that would be affordable. Replying to another question from Dr. Best, City Attorney Bray said the city has powers of eminent domain, but when dealing with the use of a pipeline, that involves other entities which also Minutes Regular Council Meeting March 5, 1996 Page 3 have condemnation authority. City Manager Garza said the staff's recommendation of establishing the Condition I trigger point at 35% was not a drastic change, and he said the members of the Water Conservation Advisory Committee, many of whom drafted the original 1987 water management plan, could determine how the situation has changed and make recommendations based on their evaluation. Council Member McNichols described how complex this issue is, and he said the committee should study the issue, including the trigger levels, and come back to the Council with their recommendations. Council Member John Longoria suggested that some of the measures proposed in the drought contingency plan could be examined sooner than previously recommended, and Mr. Dodson said the committee members could consider that. He agreed with Mr. Longoria that it is important to make the public aware of their responsibility regarding efficient water use. Council Member Martin said some other members could be named to the Water Conservation Advisory Committee to ensure wide-ranging representation. He said he did not think there should be a separate lawn watering ordinance, but a revision of the overall plan, if necessary. Mr. Martin questioned the summary of the 1987 drought contingency plan, and a discussion followed. Mr. Garza discussed aspects of Condition I of the plan, noting that some of the water use restrictions first go against the city. Responding to a question from Mr. Martin, Mr. Dodson said that approximately 55% of the area's water is consumed outside the Corpus Christi city limits, which includes the consumers in the industrial district. Mr. Martin also commented on the difficulty of using existing natural gas pipelines to bring water from Lake Texana. Mr. Heldenfels asked what size pipeline would be needed to transport water from Lake Texana, and Mr. Dodson replied that the minimum would be about 48 inches. Mr. Heldenfels reiterated his opinion that the drought contingency trigger level should be raised to 40% of the system's capacity. Dr. McNichols urged caution with regard to seeking reductions in the May/June pass-through targets for freshwater releases. Mr. Dodson discussed another option of seeking emergency relief from the targets for a limited time. Mr. Martin said he felt that a reduction in the pass-through targets would be reasonable before more restrictive conditions are imposed on area water consumers. Responding to a question from Mr. Martin, Mr. Dodson said he recommended enacting a lawn watering ordinance outside the drought contingency plan because he thinks there should be a constant reminder that this is a semi -arid area and it encourages overall water efficiency. He noted Minutes Regular Council Meeting March 5, 1996 Page 4 that San Antonio has a lawn -watering ordinance in effect all the time, and he suggested that a trigger could be when the reservoir capacity is at 50%. Mr. Dodson then referred to a proposed time line concerning establishing the Water Conservation Advisory Committee; enacting a lawn watering ordinance; and seeking a reduction in the May/June pass-through amounts, among others. Mr. Garza commented about the extraordinary circumstances the city may face regarding water conditions this summer. He also commended the Council for their forethought in securing the Lake Texana and Garwood water supplies. Mayor Rhodes called for comments from the audience. Mr. J.E. O'Brien, 4130 Pompano, said he supported the recommendations concerning the advisory committee, the lawn watering ordinance, and the reduction in the pass-through targets. He said he did not have enough information for an opinion about the trigger levels, and he strongly opposed seeking a permit for water from Lake Texana. He said there was massive, far-reaching opposition to an interbasin transfer of water, adding that the contract with the Lavaca-Navidad River Authority was void. Mr. O'Brien also questioned plans for the Gateway Project, saying it would require more water usage. Mrs. Dorothy Spann, 502 Del Mar, said many citizens are deeply concerned about their water usage, and they support long-term solutions to this area's water demands. City Secretary Chapa polled the Council for their votes as follows: 3.b. FIRST READING ORDINANCE Amending the Corpus Christi Code of Ordinances, Chapter 2. Administration, Division 20. Water Conservation Advisory Committee, by adding Section 2-230. Water Conservation Advisory Committee: composition, organization, and duties which establishes a Water Conservation Advisory Committee to act as an advisory committee to assist the City Council in matters of water conservation, drought management and water resources management; providing for publication. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 4, purchase of new utility customer information and billing system. Minutes Regular Council Meeting March 5, 1996 Page 5 City Manager Garza said this proposal had been in the planning stages for quite some time. Since it was not known exactly when this item was going to be recommended to the Council, the funds were not included in this year's budget; however, it was included in the five-year capital improvement program. He said this proposal, which involves a long-term investment by the city, has primarily customer service benefits, as well as a corresponding savings. Mrs. Rosie Vela, Director of Finance, described the city's current utility customer billing system and the problems that have been encountered. She noted that the system is almost 20 years old and is very programmer -intensive. She said customers have asked for services the city cannot provide at this time, such as drafting on one's bank account, and level payment plans. Mrs. Vela explained that several requests for proposals were sent out and four vendors responded. Staff then conducted site visits to review the systems in operation, and subsequently staff negotiated the recommendation before the Council. She then described benefits that the new system would provide, such as the addition of other kinds of billings on the utility system; a complete audit trail; and immediate delinquent notice billing (providing for increased revenues), among other benefits. The Finance Director said staff is proposing that the new system be funded from the unreserved fund balances of the combined utilities. Staff is also proposing that the General Fund portion (the Solid Waste activity) be paid back over a seven-year period (including the market interest rate) to the combined utility fund. She said it is estimated that the system would take 18 months to be completely installed. Responding to Council Member Martin, Mrs. Vela said the proposed financing was appropriate as long as the market rate of interest is used; there is no sacrifice to the combined utilities fund. Mr. Garza added that the bid process was a long, drawn-out negotiation process and it was not clear at the time the budget was prepared last year when this proposal would be brought before the Council. Mr. Martin said he did not doubt that the city would benefit from such a billing system, but he expressed concern about attempting to purchase it at this time, considering that water revenues will likely be reduced and water expenditures will likely be increased. Mr. Garza replied that the problems in the current system are almost insurmountable, and the proposed system is designed to respond more effectively to customers' needs. He added that with respect to the operating budget, he had advised the staff to determine what corrective action the Council would have to take to ensure that the financial integrity of the system is maintained as water consumption decreases through conservation. Mr. Martin reiterated that he recognized the need for this system, but he pointed out that if a separate drainage utility is not established, there are some drainage projects that will need to be Minutes Regular Council Meeting March 5, 1996 Page 6 financed with the same funds proposed for the billing system. Responding to Mayor Rhodes, Mr. Garza said that if the city does experience a period of decreased revenues, priorities will have to be established, which may result in delaying the implementation of the billing system. He added, however, that the sooner city staff is able to obtain reliable, consistent billing information, the better off the city will be. Mr. Martin asked if this system could be financed, expressing concern about depletion of the city's cash reserves. Mrs. Vela replied that at least 50% of the total cost could be financed. Mr. Garza stated that he would withdraw the proposal at this time. Council Member Black said she was opposed to spending approximately $2 million for this system right now, adding that she was not aware that staff had such a difficult time with the current system because she felt the services they provided were very good. Council Member Heldenfels asked why a financing proposal had not been recommended along with the proposal to purchase the billing system. Mr. Garza replied that it has been the Council's policy to not finance combined utilities capital purchases. He said staff had considered the financing aspect, but disregarded it because it was felt that the Council would disregard it as well. Responding to a question from Mr. Heldenfels, Mrs. Vela said staff estimates that computer mainframe costs can be reduced by approximately $1 million over five years. In reply to Council Member Best, Mr. Garza said the city could continue to use the current billing system indefinitely, although as the city continues to grow it could cause the system to flounder even more. Dr. Best then asked how long the bid would be valid, and Mr. John Bacon, Director of Information Systems, said that after 30 days the prices will change and the vendor will withdraw its offer. Dr. Best said the consensus of the Council seemed to indicate support for this proposal at a later date, but not at this time. 4.a. WITHDRAWN IIT) fey $2,050,950 fel thc purehasc t fa-ntlty east yme, inft.n.atien siad bill:,.s Sy attar: 4.b. WITHDRAWN Ordinancc No. 022279 which adoptcd thc FY 1995 96 budgct to incrcasc appropriation in thc Co..,ba.cd Utility Sy stein by $2,050,950. Minutes Regular Council Meeting March 5, 1996 Page 7 4.c. WITHDRAWN Lah..g system Letwu . the Water, Wastewater, Gas ,.nd Solid Wa3tc activitics. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 5, contract between the city and the Corpus Christi Downtown Management District (DMD). City Manager Garza said the DMD provides services to the city primarily by promoting the downtown area through marketing to increase its redevelopment. He said the proposal was for a five-year contract subject to annual appropriation by the Council. He added that the funds were available in the budget. Mayor Rhodes called for comments from the audience. Mr. J.E. O'Brien said he opposed this contract and questioned the necessity of its five-year term. He cited what he said were more urgent needs in the city. Mr. Garza said this item would, in effect, remove the necessity of bringing this item before the Council once a year for the next five years. He emphasized that the Council had the authority to not appropriate the funds and the contract would cease to exist. By promoting the downtown area and thus expanding the city's tax base, this contract would help to provide funding for the city's other bona fide needs. Responding to Council Member John Longoria, Mr. Garza said that if the city did not fund the DMD, it would probably continue operations at a reduced level. Mayor Rhodes asked about the status of litigation against the DMD, and Mr. Garza said a suit was won in district court in the DMD's favor, but it is being appealed to the Appellate Court. Council Member Heldenfels said he did not think the DMD's efforts had been successful, citing low occupancy in many downtown buildings. Mr. Garza replied that he thought the DMD had been effective because of many new businesses that have opened in the downtown area. Mayor Rhodes said the downtown has experienced a strong revitalization and she praised the DMD. In reply to Council Member Best, Mr. Garza said the Heart of Corpus Christi had been fazed out, while the DMD consists of property owners downtown. Council Member Martin noted that the $100,000 appropriation had been discussed and approved for the 1995-96 city budget. He said that if this five-year proposal was approved, it would appear that the Council was approving a $500,000 contract for the DMD, which was inaccurate. Minutes Regular Council Meeting March 5, 1996 Page 8 Mr. Martin made a motion to approve a one-year contract with the DMD for $100,000, seconded by Dr. Best, and passed unanimously. City Secretary Chapa polled the Council for their votes as follows: 5. M96-055 Motion authorizing the City Manager to execute, on behalf of the City of Corpus Christi, an agreement with the Corpus Christi Downtown Management District in the amount of $100,000, with the term of the agreement to commence August 1, 1995 and continue through July 31, 1996 for assistance in downtown development and redevelopment activities. The foregoing motion passed, as amended, by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 6, mobile data system. Mr. Len Brandrup, of the Regional Transportation Authority (RTA), introduced Ms. Linda Watson, the new General Manager of the RTA. Ms. Watson briefly addressed the Council. Responding to Council Member Heldenfels, City Manager Garza replied that the city is paying for half of the contract for engineering services (with Nueces County and the RTA paying for the other half) since the city has about half of the mobile data system; he noted that its primary use is public safety. Mr. Garza added that the day's agenda item concerned hiring a consultant to develop a request for proposals for a mobile data terminal and automatic vehicle location system. He said there are some long-term funding decisions that have not yet been made, but certain actions need to be taken at this time. Council Member Martin commented that staff would be bringing back a recommendation once the request for proposals are received, and he suggested that the staff's presentation about the system be postponed until then. 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. 022503 Ordinance authorizing the City Manager or his designee to execute an interlocal agreement between the City of Corpus Christi, Nueces County, Corpus Christi Regional Transportation Minutes Regular Council Meeting March 5, 1996 Page 9 Authority, and Trott Communications Group, Inc., for engineering services related to preparing a request for proposal for a mobile data terminal and automatic vehicle location system and providing other services. The cost of services will be $45,000 to be paid by the three agencies as follows: (1) Nueces County, $8,000; (2) RTA, $14,500; and (3) City, $22,500. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 7, purchase of computer equipment. Mr. Garza said this item required the casting of lots since a tie bid was involved. City Secretary Chapa drew the lot containing the name of MicroTek Sales Inc. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 7. M96-056 Motion approving the purchase of computer equipment in accordance with Bid Invitation No. BI -0116-96 from D.D. Computer Warehouse, Corpus Christi and MicroTek Sales, Corpus Christi on the basis of low bid, low bid meeting specifications, and casting of lots. The computers will be used by the Municipal Court, and the equipment is budgeted in the 1995-96 Budget. D.D. Computer Warehouse MicroTek Sales MicroTek Sales Items 4, 7, 8, 9, 10 & 11 Items 1, 2, 6, 12 & 13 Items 3 & 5 $8,004 $21,818 $2,494 Grand Total of Awards: $32,316 The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. * * * * * * * * * * * * * Mayor Rhodes called for a five-minute recess. * * * * * * * * * * * * * Minutes Regular Council Meeting March 5, 1996 Page 10 Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 8 through 18, and Council Members requested that Items 8 and 18 be withheld for discussion. City Secretary Chapa polled the Council for their votes and the following were passed: 9. M96-058 Motion approving a supply agreement for the hauling of approximately 91,000 barrels of wastewater sludge in accordance with Bid Invitation No. BI -0077-96 with Scurlock Permian Corporation, Corpus Christi, Texas based on the best bid of $35,475. 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 the Wastewater Department and funds have been budgeted for FY 95-96. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. 10. M96-059 Motion authorizing the City Manager to execute an agreement accepting a grant of $176,666 from the Texas Natural Resource Conservation Commission to conduct air quality planning activities for Nueces and San Patricio Counties. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. 11. M96-060 Motion authorizing the City Manager or his designee to authorize Quality Machine and Equipment Company to perform necessary repairs in the amount of $17,560 to the O.N. Stevens Water Filtration Plant high service motor No. 10. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. 12. M96-061 Motion authorizing the City Manager or his designee to execute a contract in the amount of $50,700 with Applied Earth Sciences, Inc. for consultant services for Underground Fuel Minutes Regular Council Meeting March 5, 1996 Page 11 Storage Tank Mitigation - Contract No. 2. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. 13. M96-062 Motion authorizing the City Manager or his designee to execute a contract in the amount of $19,200 with Bright & Dykemas, Inc. for architectural services for ADA improvements to selected city -owned facilities. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. 14. M96-063 Motion authorizing the City Manager or his designee to execute a contract in the amount of $18,620 with Chuck Anastos Associates, Inc. for architectural services for improvements to Joe Garza pool and recreation center. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. 15. M96-064 Motion approving the submission of a grant application in the amount of $62,934 to the Office of the Govemor, Criminal Justice Division to continue the Crime Analysis Unit in the Police Department and authorizing the City Manager to execute the contract and designating the Chief of Police as the official representative of the City. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. 16.a. M96-065 Motion authorizing the City Manager to execute an amendment to contract No. 7460005741- 96 with the Texas Department of Health in the amount of $59,575.50 and providing for immunizations to infants and children in the Women, Infants, and Children (WIC) Program during the period October 1, 1995 through March 31, 1996. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Minutes Regular Council Meeting March 5, 1996 Page 12 Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. 16.b. ORDINANCE NO. 022504 Ordinance appropriating a grant in the amount of $59,575.50 to provide immunizations to infants and children in the Women, Infants, and Children (WIC) Program during the period October 1, 1995 through March 31, 1996; amending Ordinance No. 022279, which adopted the FY 1995-96 budget by adding $59,575.50 to the No. 162 Federal/State Grants Fund - Health Department. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. 17. ORDINANCE NO. 022505 Amending the Code of Ordinances, Section 53-250, Schedule I, One-way Streets and Alleys, by adding the Interstate 37 north frontage road system (northbound) from Rand Morgan Road to Violet Road, and a portion of Up River Road (northbound) from Rand Morgan Road to approximately 1,000 feet south of Rand Morgan Road; providing for publication. The foregoing ordinance passed on second reading by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 8, supply agreement with AAMCO Transmissions. Responding to Council Member Best, Mr. Garza said that preventive maintenance for city vehicles, particularly police cars, was the responsibility of designated city employees and not the drivers; in addition, cars are scheduled for regular maintenance. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 8. M96-057 Motion approving a supply agreement with AAMCO Transmissions, Corpus Christi, Texas for automatic transmission overhaul and repair service for approximately 142 automobiles and light trucks in accordance with Bid Invitation No. BI -0115-96 based on low bid for an Minutes Regular Council Meeting March 5, 1996 Page 13 estimated annual expenditure of $65,985. The term of the contract shall be for twelve months with an option to extend for up to two additional twelve month periods subject to the approval of the supplier and the City Manager or his designee. Funds have been budgeted by Maintenance Services and the Fire Department in FY 95-96. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 18, use privilege agreement with VFW Post. In response to Council Member Heldenfels, Mr. R.H. Shackelford, Director of Engineering Services, said it would be possible to place three 2 -inch lines within the same 6 -inch steel welded casing in a "pyramid" formation. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 18. ORDINANCE NO. 022506 Authorizing the City Manager or his designee to execute a Use Privilege Agreement with the James Brooks, VFW Post 3837 to bore a 6" steel welded casing, approximately 160 feet in length across the Leopard Street right-of-way approximately 1,150 feet east of Callicoate Road to accommodate a 2" force (wastewater) main and with the intent to allow two additional 2" inactive lines within that same 6" steel welded casing for future use under separate use privilege agreements; and establishing a fee of $310. The foregoing ordinance passed on second reading by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. * * * * * * * * * * * * * Mayor Rhodes announced the closed session pursuant to the Texas Government Code, Section 551.071, regarding City of Corpus Christi v. William P. Riddick, Cause No. 95-7104-G, 319th District Court, Nueces County, Texas with possible action in open session. The Council went into closed session. The Council returned from closed session. Minutes Regular Council Meeting March 5, 1996 Page 14 Mayor Rhodes made the following motion, seconded by Council Member Heldenfels, and passed by the following vote: 19. M96-066 Motion authorizing the City Manager to execute an agreement in connection with City of Corpus Christi v. Riddick, No. 91-7104-G, 319th District Court, Nueces County, Texas, whereby the City immediately pays to the landowners the amount of $20,602, in consideration of the City's right to immediately enter the property and construct utility line relocations and roadway improvements to Ocean Drive while condemnation proceedings are being concluded, such amount to be deducted from the final award made in such case. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. * * * * * * * * * * * * * Mayor Rhodes called for the City Manager's report. Mr. Garza discussed the permit application by Hallco Texas Inc. to construct and operate an industrial waste landfill near Choke Canyon Reservoir. He said a formal hearing will begin on March 18, 1996 until March 29, 1996 in Choke Canyon State Park. The hearing will then move to Austin, after which the administrative law judges will draft a recommendation to the Texas Natural Resource Conservation Commission. He said city staff will continue to oppose that permit application at the Council's direction. Mr. Garza pointed out that there would not be a Council meeting on March 12, 1996; items scheduled for the March 19 meeting are the first reading of the ordinance regarding adult businesses with undesirable secondary effects. He added that a report would be forthcoming about the Fire Department's equipment. Mr. Garza then proceeded to update the Council on the FY 95-96 city budget. He said when staff began implementing the current year budget, it became apparent that the economy was not producing sales tax revenues as staff had anticipated. Consequently, Mr. Garza said he directed staff to implement a hiring freeze for city employees. In addition, the city's fund balance was about $500,000 lower than expected. The City Manager said some adjustments have been made to the current budget in order to complete the fiscal year with a fund balance. He noted that Standard and Poor's had emphasized the importance of not depleting the city's reserves. He said the sales tax revenues for the month of January, which were disbursed to the city in March, were $25,000 higher than staffs estimates had indicated. As staff began adjusting the budget, Mr. Garza said they recognized the importance the Council places on public safety, and he asked that slight decreases be made in overtime expenses. Minutes Regular Council Meeting March 5, 1996 Page 15 Referring to a General Fund statement of revenues and expenditures dated March 1, 1996, Mr. Garza pointed out that the beginning balance for FY 95-96 had been estimated at $3,008,322, and the actual amount was $2,504,633; property taxes had been estimated at $28,449,347, while the actual amount will be $28,712,562, a slight increase; and sales tax revenue was anticipated to be $26,920,715, while the city expects to actually make $25,617,141, about $1.3 million Less than what had been budgeted. He said total revenue had been budgeted at $108,106,241, while realistically the city can expect to make $107,287,855. Mr. Garza said adjustments have been made. The original unreserved fund balance had been budgeted at $320,979, while the actual amount at the end of the fiscal year may be $907,549. Mr. Garza said he expects the Council to direct him to recommend a budget with a continuation of basic services and no increases in the tax rate. He assured the Council that the city's budget will finish "in the black" but next year's budget will contain many challenges. Council Member Heldenfels said he did not favor a tax increase, but he emphasized the need for additional police officers. Council Member Martin requested a copy of the January 31, 1996 monthly report. He also asked about the health insurance expenditures, and Mr. Garza said those will be reflected in the various departmental accounts for the FY 96-97 budget. Mr. Martin also questioned a reduction in Solid Waste expenditures. Mr. Garza replied that his goal for Solid Waste Services is to ensure that the funding plan as well as the new landfill are protected; he added that he would provide the Council with a written report on that issue. Mr. Martin then asked why expenditures for public safety had increased over the amount that had been budgeted. Mr. Garza explained that part of the reason is to anticipate a turnover in the Police and Fire Departments and to compensate for that in establishing the size of the academies. He also referred to the budget amounts for retiring Police and Fire personnel. Mr. Martin requested more information about the Police and Fire departments' policy on vacation usage. Mr. Martin asked if staff had projected --with no tax increase --how negative the unreserved fund balance would be. Mr. Garza said he estimated it to be $4 million. Mr. Martin said that would mean that between now and next year's budget, $4 million in expenditures would have to be reduced on a permanent basis. He emphasized that the Council needs to know that the city cannot continue its current level of services, according to the budget figures. Mr. Garza noted that department heads have worked to reduce their operations, which can carry over into next year's budget. Mr. Martin asked what the options were to fund a $4 million deficit, and Mr. Garza replied that they included reductions in services where the priorities are appropriate, combined with some fee increases. Mr. Martin said reductions achieved by department heads has resulted in about $1 million; however, that has also resulted in deferred expenses. He said it appeared that the Council Minutes Regular Council Meeting March 5, 1996 Page 16 would have to reduce the level of city services in order to balance the budget. Mr. Garza said the city did not have revenue options to make up the difference, and the expenditure options are limited. Mr. Garza continued that this year, the budget would not be able to support the addition of Police or Fire personnel, and reductions in expenditures elsewhere in the General Fund budget are necessary in order to maintain the personnel gains made previously in the Fire and Police departments. Examples of areas of reduced expenditures will probably include park maintenance, street maintenance, and other activities. Mr. Garza acknowledged that the FY 96-97 budget will be difficult. Responding to a question from Mr. Martin about the city's bond ratings, Mr. Garza said that both Moody's and Standard and Poor's will review the size of the city's fund balance, but more importantly, whether the city has an operating surplus or a deficit; it is better to have an operating surplus than a large fund balance with an operating deficit. Mr. Martin pointed out that staff was projecting an operating deficit this year, and it appeared that the Council was going to have to make some major program changes. Mayor Rhodes asked if staff had a tentative list of recommendations. Mr. Garza replied that in the last several years, when cut-backs had been necessary in the General Fund budget, they were made while protecting the Fire and Police expenditures and, to some extent, the Health and Library departments. Mr. Garza added that he expected to review estimates for the FY 96-97 budget very soon and he would bring a draft budget to the Council, as required by the City Charter, by the end of May. In reply to a question from Council Member John Longoria, Mr. Garza said that when a hiring freeze is in effect, the positions of highest priority are filled first (such as that of truck drivers for Solid Waste Services). In addition, vacancies are also filled in activities that generate revenue or are funded by a grant. Mr. Longoria asked how many positions were "frozen" at this time, and Mr. Garza answered that there were 91 positions in the General Fund. Mr. Longoria then requested more information about hiring freeze priorities. Mr. Longoria also asked about departmental budget preparations. Mr. Garza pointed out that some departments --such as Solid Waste --can compute their budgets based on established criteria, while some programs are funded through user fees, such as the latchkey program. Mr. Longoria pointed out that expenditures for public safety make up almost half of the General Fund budget, and he explained why he felt an overall crime fighting plan should be developed. Mr. Garza noted that Corpus Christi is a city of modest means, and it tries to provide basic services, including an adequate level of services for fire and police. The City Manager also cited examples of services that have been provided despite modest revenues, and he discussed various budget methods, including budgeting for personnel needs. Minutes Regular Council Meeting March 5, 1996 Page 17 In reply to Council Member McNichols, Mr. Garza said the budget appears to be less favorable this year than it did at the same time last year. Despite a projected decrease in sales tax revenues this year than what had been budgeted, Mr. Garza noted that there were some positive changes expected which could boost the local economy, such as the influx of Navy personnel, and the fact that this is an election year. He also pointed out that an increased issuance of building permits will probably result in an increase in the property tax base. Dr. McNichols commented that the 1986 bond program was completed, under considerable public pressure, with an increase in the tax rate; however, that and other requirements are further burdening the budget. He and other Council members suggested that staff bring back recommendations for the budget in mid-April for discussion. Council Member Best requested a comparison of the percentage of public safety expenditures in Corpus Christi versus other Texas cities. Mr. Garza commented that some cities may have a somewhat lower percentage dedicated to public safety, such as in San Antonio. Dr. Best then asked the amount of revenue that would be generated by a one -cent property tax increase, and Mr. Garza replied that it would be about $600,000. Responding to another question from Dr. Best, Mr. Garza said that a lower bond rating would not affect the city's current debt; it would, however, affect a future bond sale in the form of a higher interest rate. Mr. Garza added that he felt a future bond sale might be needed for street maintenance and parks. He also briefly discussed the bridge and road fee charged by Nueces County. * * * * * * * * * * * * * In her report, Mayor Rhodes noted that Council Member Cooper had to leave the Council meeting, but she wanted to express her interest in establishing a task force to deal with youth violence. The Mayor also announced that, if the Council agreed, she would reestablish the Charter Revision Committee, with Council Member Betty Jean Longoria as the chairperson. Mayor Rhodes called for Council concerns and reports. Council Member McNichols said that citizens had compared the city's request for a permit for a new landfill with the permit by Hallco Texas Inc. for an industrial waste landfill. He pointed out that the items being proposed for disposal are completely different --the landfill that Hallco intends to build is not a general municipal landfill, but would contain at least a thousand different chemicals. Dr. McNichols noted that the topography of the two landfills is very different: Corpus Christi's proposed landfill is in a flat area with clay soils, while the Hallco landfill would be in a hilly area that has been perforated by wells, leading to a risk of contamination of our water supply. Dr. McNichols also requested more information about the use of reformulated gasoline. Minutes Regular Council Meeting March 5, 1996 Page 18 Mayor Rhodes noted that members of the Air Quality Committee are divided on that issue, and to help resolve it, some members of the Environmental Protection Agency and others have agreed to provide their neutral input. Council Member Martin requested a clear legal opinion about the requirement for certification of funds. He referred to a memo from City Attorney Bray which stated that fund certifications were not required for utility funds. Mr. Garza stated that the city has a long-standing practice which requires the certification of funds for all capital project expenditures; he said since he has been with the city, routine operating purchases (even though they may be large) were not fund certified. Mr. Bray said that generally the city lets contracts on utilities without specifying in the contracts that only utility revenues can be used; he said that is the distinction on the Lavaca-Navidad River Authority contract. Mr. Bray said staff would study this issue further, and a discussion ensued. * Mayor Rhodes called for petitions from the audience. Ms. Tanya Ann Chuoke said she resides at the Coastal Bend Alcohol and Drug Rehabilitation Center (36 N. Country Club Place). She said that a few years ago, while working as a registered nurse at a local hospital, she developed a drug habit and was able to receive help through "Charlie's Place," as the rehab center is known. She strongly opposed the possible closing of Corpus Christi's only indigent detoxification center. Ms. Chuoke submitted a petition signed by many people who also opposed the closing. Mayor Rhodes said she was aware of the center's contribution to the community, noting that it had previously received funds through the city's Community Development Block Grant program. She pointed out that, in light of the city's current budget situation, funds for non-profit organizations were not available. The Mayor suggested that Ms. Chuoke submit the petition to another entity, such as the United Way board. Ms. Sindi Graber, 302 Dagger Island, said the current system of selecting public defenders in the courts encourages impropriety, to which she objected. Mayor Rhodes and Mr. Martin pointed out that the city has nothing to do with that process, saying the court systems are the responsibility of the county. They suggested she take the issue up with Nueces County Commissioners Court. There being no further business to come before the Council, Mayor Rhodes declared the Council meeting adjourned at 6:20 p.m. on March 5, 1996. * * * * * * * * * * * * *