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HomeMy WebLinkAboutMinutes City Council - 05/28/1996I 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 May 28, 1996, which were approved by the City Council on June 11, 1996. WITNESSETH MY HAND AND SEAL, this 1 lth day of June, 1996 SEAL %Z Armando Chapa City Secretary MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting May 28, 1996 2 p.m. PRESENT Mayor Mary Rhodes Mayor Pro Tem Melody Cooper Council Members. Dr. Jack Best Betty Black Tony Heldenfels Betty Jean Longoria John Longoria Edward Martin Dr. David McNichols City Staff: 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 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 May 21, 1996, and there being no corrections, she proclaimed them approved as presented. * * * * * * * * * * * * * City Manager Garza noted that this was his last official meeting as City Manager, and he had invited his family to join him as he bid farewell. He thanked the Council for the support they have given him over the years, adding that he and his family love Corpus Christi and intend to stay here. Mayor Rhodes said the Council would like to invite Mr. Garza and his family back to a Council meeting in a few weeks for a reception in his honor. * * * * * * * * * * * * * Mayor Rhodes referred to the Board and Committee appointments on the day's agenda, and the following appointments were made: Minutes Regular Council Meeting May 28, 1996 Page 2 �n. 11 John Allsup Al Prebula * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 3, ordinance regulating sexually oriented businesses. Deputy City Manager Hennings said that when this issue was tabled on April 30, 1996, staff met again with adult business owners and have accommodated many of their requests in developing a substitute ordinance. He said staff was proposing that the Council adopt a motion substituting the ordinance as contained in the Council's current packet (pages 64-100) for the ordinance that the Council passed on first reading on March 19, 1996; he said the substitute ordinance could then be the basis for further discussion at the meeting. Mr. Hennings said that in addition to the substitute ordinance, staff had prepared 13 amendments (with several variations on some of those amendments) to respond to concerns that the Council had raised. Mayor Rhodes called for comments from the audience. Mr. Raymond Wimberly, 806 Alden, said the alcoholic beverage industry cost Corpus Christi $60 million last year, and that cost will continue to increase. He questioned what the Council intended to do. Ms. Dee Huber said the Council's decisions should be made for everyone in the city. Mr. Christopher Huber contested the contention that topless bars affect children --he said there are more graphic images contained on compact discs that are available to children. Ms. Maria Rebecca Trujillo thanked Mayor Rhodes for her support of this ordinance, and urged women who dance in topless clubs to get involved in the La Leche League. A woman who did not give her name recounted her personal experience with the negative effects of adult businesses. She added that those businesses were immoral and degrading to families. Mr. Lynn Woods, 1234 Nile, said the Supreme Court has already upheld cities' authority to regulate adult businesses. He said he and others appreciate the Council doing what was right for the majority of citizens, not just a few. Mrs. Pam Woods, 1234 Nile, said the Council had previously received information concerning violations of Texas Alcoholic Beverage Commission regulations; one local topless bar Minutes Regular Council Meeting May 28, 1996 Page 3 in particular had had about 21 public lewdness violations. She noted that many adult business customers have no accountability to the neighborhoods adjacent to the adult businesses. Ms. Jackie Jackson said she was proud to be a dancer at Pepper's, a topless bar. She objected to the effort to regulate existing adult businesses that provide income to the city. She noted that she has been able to purchase a nice home; however, she feared she may no longer have her job if the ordinance is approved. Ms. Leah Mackie, who will attend the 8th grade next year, said she was Ms. Jackson's daughter. She said she has lived with her mother both when she works as a topless dancer and when she does not, and Leah said she likes it better when her mother works as a dancer. She questioned whether this is a free society. Mr. Stephan Walker, 4718 Donegal, said he lives near the topless club on Everhart Road, and is forced to pass by it every day. He asked that the location of the adult businesses be changed so as not to tempt fathers day after day. Mr. Leo Duran, a local attorney representing several topless clubs, referred to information he had prepared concerning property values around adult businesses. He noted that some adjacent apartment complexes have increased in value. Mr. Terry Fox, pastor of Gardendale Baptist Church, thanked the Council for their diligence on this issue. He said that morality, while controversial, was important and worthy of the Council's consideration. He urged the Council to approve the ordinance. Mr. Pat Bullock, pastor of Annaville Baptist Church, said he was concerned that the city's standard of livelihood overshadowed its morality. He said the majority of citizens support the regulation of adult businesses and he encouraged the Council to as well. Mr. Jimmie Till, a longtime resident of northwest Corpus Christi, asked if the public would be able to comment on the ordinance once the amendments are discussed, and Mayor Rhodes replied that the public hearing would be closed at that time. Mr. Till asked that the adult businesses not be concentrated in District 1. Mr. Herb Kinard, 4629 Donegal, said alcohol and pornography have ruined many great nations, and the city named for the Body of Christ faced the same challenge. He said people were praying that the Council will make the right decision. Mr. Richard Beck, owner of Fantasy (a topless club), told the Council that passing the ordinance as currently proposed would put people out of work. He said religion should not enter into the Council's decision. Minutes Regular Council Meeting May 28, 1996 Page 4 A man named "Slim" voiced support for the topless bar owners and their employees, and he urged the Council to allow those businesses to stay open. Mr. Walt Gore, 962 Oriental Street, said morals cannot be legislated, adding that he was more concerned about pedophiles than topless dancers. Ms. Janice Jones, who works at Bottoms Up, said the proposed ordinance would overregulate adult businesses. She said as a single mother expecting another child, she wanted to keep her job and did not want to be pushed onto welfare. Mr. Ludell Adair, who works with Pepper's, said she contacted other cities about their adult business ordinances. She criticized the "three strikes and out" provision, saying it created extensive legal wrangling and would not be effective. Mr. Douglas Meissner said he has owned Bottoms Up for 12 years. He said if the ordinance passed, it would result in singling him out and eliminating his retirement plan. Mr. Gerald Benadum, an attorney representing topless bar owners, asked that the public be given another opportunity to address the completed ordinance; Mayor Rhodes replied that if the resulting ordinance was radically different from the original, they would probably bring it back. Mr. Benadum said there were basic issues involved, including free enterprise and freedom of speech, and it was not a morality issue as far as the Council's authority was concerned. He said the original objective --regulating where "true" sexually oriented businesses can be located --was worthwhile; however, what has occurred is countless time spent arguing about the outcome of the existing topless bars. He said there was not adequate evidence that topless bars created a problem, and he said the existing businesses should be left alone. Mr. Bill May, another local attorney representing topless bar owners, said the proposed ordinance was very far-reaching and attempts to regulate topless bars in the same way as other adult businesses. He said there should be different regulations for them. Mr. May also criticized the "three strikes and out" provision for existing topless bars, saying it would be ineffective and lead to years of litigation. He noted that the topless bars are already regulated by the Texas Alcoholic Beverage Commission. Mrs. Susan Barrett, 4006 Marion Circle, said she and others have appealed to the Council many times, saying that the families of Corpus Christi do want and need an ordinance regulating sexually oriented businesses. She said that regardless of what the bar owners and their lawyers say, adult businesses do not enhance the quality of life in the community. Mrs. Barrett said there are already 16 existing adult businesses, some of which are adjacent to schools, churches and daycare centers. She said the very presence of a sexually oriented business in a neighborhood leaves an air of undesirability, which is the primary cause of property devaluation. Mrs. Barrett pointed out that Minutes Regular Council Meeting May 28, 1996 Page 5 other Texas cities, the City of Robstown and Nueces County already have or are considering regulations for adult businesses. She submitted a petition with the names of 2,400 people in the community who support the proposed ordinance and who are asking that the amortization period be reduced to no more than three to five years. Council Member Heldenfels made a motion to close the public hearing, seconded by Council Member Betty Jean Longoria, and passed unanimously. Mr. Hennings referred to several amendments to the ordinance that were proposed by staff. He described the first four amendments and their accompanying maps, which illustrated possibilities of different locations for adult businesses. Mr. Hennings explained that the substitute ordinance (with no amendments) would allow approximately 1,401 acres in which adult businesses could be located; Amendment 1, about 881 acres; Amendment 2, about 5,604 acres; Amendment 3, about 5,421 acres; and Amendment 4, about 5,342 acres. A lengthy discussion ensued among the Council members, during which Mrs. Longoria addressed the issue of locating the sexually oriented businesses primarily in her district --which she opposed --or in other areas throughout the city. Council Member Martin pointed out that there were basically three issues facing the Council: dealing with future adult businesses, regulating existing adult businesses, and determining an amortization period for existing businesses. He also noted that in order to achieve a consensus among the Council, certain "trade-offs" would have to be made. He said Amendment 1 proposed the most restrictive locational requirements for future businesses, and it was difficult to support the ordinance and not support Amendment 1. Mayor Rhodes suggested that staff complete its discussion of the different proposed amendments. Mr. Hennings explained that Amendment 5 would change the time within which a permittee must apply for amortization extension to December 1, 1996 from June 30, 2005. Mr. Martin made a motion to accept Amendment 5, seconded by Mayor Rhodes. Council Member John Longoria suggested that all of the amendments be discussed before votes were taken on any of them. Mr. Hennings explained the following eight amendments: Amendment 6, reduce the amortization period from 10 years (as contained in the original ordinance) to another time period; Amendment 7, eliminate the 10 -year amortization period and establish a permanent nonconforming use; Amendment 8, allow immediate appeal to the City Manager's designee of the Police Chief's decision that the permittee is responsible for a customer conviction; Amendment 9, provide that appeal of the Police Chiefs decision on revoking, suspending, or denying a license is to the City Council, rather than to the City Manager's designee; Amendment 10, limit the three -conviction rule to convictions of employees, thus eliminating its application to customers; Amendment 11, eliminate the three -conviction rule entirely; Amendment 12, expressly provide that if a conviction is reversed upon appeal to court, it shall no longer constitute grounds for suspension, revocation, or denial of Minutes Regular Council Meeting May 28, 1996 Page 6 a license; and Amendment 13, lower from $500 to $250 the daily civil penalty the Police Chief may provide, upon request of an owner, as an alternate to a suspension. Council Member McNichols asked about Amendment 13. Mr. Hennings said the adult business owners requested that there be a civil penalty alternative, because they felt in some cases it would be less onerous for them to pay a penalty than to have to shut down their businesses. The original ordinance called for a $500 penalty and the owners asked that it be reduced to $250. Mr. Longoria discussed the idea of retaining in the ordinance Sections 48-18, 48-19 and 48- 20 pertaining to applying for permits, and striking Sections 48-21 through 48-25 pertaining to regulation of permits. City Attorney Bray noted that Mr. Longoria's suggestion would eliminate any grounds for denial or revocation of the permit. Mr. Bray said that if the Council took that action, he would need to revise the ordinance and bring it back for Council approval. Mr. Longoria said his proposal would make it easier to come back later and amend the ordinance. Mr. Martin made a motion to instruct staff to bring back a revised ordinance with the following changes: adopt Amendment 1 regarding the location of adult businesses; strike the regulatory portions discussed by Mr. Longoria; and in Amendment 6, reduce the amortization period to seven years. Mr. Longoria seconded the motion. Council Member Best questioned if those changes would "gut" the ordinance, and Mayor Rhodes replied that without those changes, the ordinance would not pass at all. She noted that it would set a time limit for the existing businesses and restrict the area in which they can be located, while allowing for the penal code to regulate the businesses. Mr. Martin said that to his knowledge, the Council was not primarily concerned with regulatory issues but with the location of adult businesses and their effects on surrounding property. Mr. Heldenfels said he would only support an ordinance which would "grandfather" the existing adult businesses while allowing for regulation of future businesses. Dr. Best asked if a public hearing would have to be held, and Mayor Rhodes said it would. City Secretary Chapa polled the Council, and the motion passed by the following vote: Rhodes, Best, Cooper, J. Longoria, and Martin voting "Aye"; Black, Heldenfels, B. Longoria, and McNichols voting "No." Responding to requests from Mr. Bray, the Mayor said the ordinance would be tabled until June 11, 1996. Minutes Regular Council Meeting May 28, 1996 Page 7 3.a. POSTPONED Amending the Cede of O.d:nane.,s, City of Cetus Chtisti, by adding a ..eta-Glcapt,r 48, Sexually Otie ded Basiness,s, regai:ing pcnnitti..g of scxually o.;e..t,,d baai..esses, guiat ag y ea.e..te1 Lusi,nsscs, d�.€n,izIg scxuaily et; tcd bnsi initial penait applieatioit, ,cpeali„ g Chaptei 28, Ma3sagc Parlors; providing-fo, pet.altics; • 3.b. POSTPONED * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 4, basic cable television service and related rates. Mr. Hennings explained that TCI Cablevision of Texas has applied for approval of a rate increase. He noted that the U.S. Congress has severely limited the City Council's ability to regulate cable television rates; basically, they are authorized to review TCI's proposal and determine if it complies with Federal Communications Commission (FCC) guidelines. If the proposal does comply with FCC guidelines, then TCI is allowed to put the increased rate into effect. Mr. Hennings said the city used an expert consultant--Fredrikson & Byron --to review TCI's rate filings, and the consultant presented their report to the Corpus Christi Cable Communications Commission, which held a public hearing on the subject on May 20, 1996. He said that regarding the basic service tier (channels 2-24, not including the premium pay -channels), which is what the City Council is authorized to review, the charge that TCI is proposing is $9.44. Under the FCC regulations, they are entitled to increase the rate to $9.50. The one deviation from what TCI submitted is that in their proposal, they believe that the maximum allowable charge would be $9.51, but the city's consultants determined that the maximum would be $9.50, which is consistent with the FCC's regulations. Minutes Regular Council Meeting May 28, 1996 Page 8 He said staff, the city's consultants, and the Cable Communications Commission are recommending that the Council adopt an ordinance that authorizes TCI to increase the rate for basic cable television service to $9.50, with similar findings on the lesser charges for service. Mayor Rhodes asked what the consequences would be if the Council did not approve the ordinance. Mr. Hennings replied that TCI would still be entitled to proceed because apparently they are in compliance with the FCC regulations; however, one adverse result would be that the determination that the maximum increase should be $9.50 would not exist, and TCI may persist in their $9.51 proposal. Mayor Rhodes called for comments from the audience. Mr. Cecil Henry, 3117 Royal Court, opposed the requested increase, saying his bill for cable television service from TCI has increased quite a lot in five years. He noted that TCI restructured the channels a few years ago and placed CNN on Channel 39, preventing many customers from receiving it because their televisions only went up to Channel 36. Mr. Henry said he did not believe the rate request was justified because the FCC authorizes it, and he urged the Council to vote against the proposal. Mayor Rhodes pointed out that if the Council opposed it, it would not lock TCI into a rate "cap." Council Member Heldenfels questioned whether the Council had access to TCI's actual costs, adding that he would like to review those figures. He said he could understand TCI raising their rates if that action was justified. Council Member McNichols emphasized that the City Council had nothing to do with setting cable television rates. He asked Mr. Hennings to further explain that point. Mr. Hennings replied that the city can review TCI's proposals for rates for the basic tier of services, and determine if they meet FCC guidelines. The other action is that the city can file complaints with the FCC if they believe that their charges for expanded basic service are too high. He said the city has done that in the past, and about a year ago the FCC did act on the city's complaint and ordered a refund to customers. Council Member Cooper said she did not see any justification for TCI's proposal, therefore, she would vote against it. Responding to Council Member Best, Mr. Hennings said this is not the first time that the city has found a minor deviation in TCI's proposal. In taking this action, the city is ensuring that TCI meets the FCC regulations. Dr. Best also asked what would occur if the Council opposed the proposed ordinance. Mr. Hennings replied that TCI could acquiesce to the Council's decision and not raise the rates; more likely, however, they would put their proposal into effect. He noted that TCI has already advertised and notified their customers that they are going to raise the rates. He Minutes Regular Council Meeting May 28, 1996 Page 9 added that TCI's argument would be that the proposed increase meets the FCC guidelines and the city has no authority to prevent them from doing that. Dr. Best asked why this ordinance was before the Council, and Mr. Hennings said it was the device that Congress established to involve the local government in cable television rates. Council Member Martin asked if the Council's role was to make a finding that the rates requested by TCI do not violate FCC regulations and therefore are not subject to the Council's review. He said the Council could make a finding that they could not prevent the rate increase, or that TCI's rate increase is consistent with federal law. Mr. Martin said it appears that the Council is being asked to approve a rate increase which they do not want to do. City Attorney Bray replied that the Council's action would be to authorize the rates calculated in accordance with the FCC rules; it is not a finding that the rates are reasonable. Mr. Martin then asked if the law provided that the Council has to make that determination, or does it provide that if TCI is outside the FCC rules, then the Council can make rate determinations. Assistant City Attorney Michael Scanlon responded that the City Council, as the regulating authority, must make that finding in order to ensure that the cap is as low as it can be. Mr. Martin said he did not object to making that determination, but it seems that the Council is approving a rate increase for TCI. Mr. Scanlon said the Council was not approving a rate increase but authorizing one. Dr. Best asked what the difference was between "approving" and "authorizing" a rate increase. Mr. Scanlon explained that if the Council had failed to act at all, TCI's submission was originally asking for a cap of $9.65 per month; by acting, the Council has reviewed TCI's filing and compressed their rate from $9.65 to $9.50. So by authorizing TCI to do only what the FCC allows them to do, the Council is keeping the rate as low as it should be. Dr. Best said the average citizen will think that the Council voted to give TCI a rate increase, which he did not think the Council wanted. Mr. Scanlon said the ordinance was written to authorize FCC -approved rates, not to put the Council in the position of approving the rates. Council Member John Longoria asked that if the Council took no action on this item, then TCI would not reach the cap. Mr. Scanlon replied that if the Council took no action or voted against it, the result would be, at a minimum, the cap would be $9.51 instead of $9.50, when it should be $9.50. Mrs. Cooper asked about the $9.65 rate, and Mr. Scanlon explained that $9.65 was the rate that TCI originally said was the maximum permitted rate, and after reviewing the filing the city's consultant found it to be in error. Mrs. Cooper asked if the Council voted against the proposal, would TCI raise the rate to $9.65, and Mr. Scanlon said the city's argument would be that they have Minutes Regular Council Meeting May 28, 1996 Page 10 to remain with the $9.51 rate. He said that in essence, the Council would be giving back to TCI money to which they are not entitled if the Council voted no. Mrs. Cooper asked if TCI would automatically go to the $9.51 rate if the ordinance did not pass, and Mr. Scanlon said that was up to TCI. City Secretary Chapa polled the Council for their votes as follows: 4. FAILED TO PASS The foregoing ordinance failed to pass by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "No." * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 5, grant applications to the Coastal Management Program. It Tom Utter, Assistant City Manager for Development Services, said the Texas General Land Office (GLO) estimates that the state will be receiving approximately $1 million for coastal projects under the Coastal Management Program from the federal government. He said staff was proposing to submit three grant applications with authority for a fourth one, which he described: Padre Island seawall public beach access and parking project; Corpus Christi downtown waterfront revitalization (Gateway Project); Corpus Christi Beach renourishment; and a request by the Corpus Christi Beach Association to endorse and nominate a Corpus Christi Beach master plan grant application for $40,000. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 5. RESOLUTION NO. 022582 Resolution by the City Council of the City of Corpus Christi, Texas, supporting three City grant applications and one from the Corpus Christi Beach Association to the Coastal Management Program for improvement projects consistent with the Corpus Christi Coastal Minutes Regular Council Meeting May 28, 1996 Page 11 Management Plan and authorizing the City Manager or his designee to submit the three City grant applications. The foregoing resolution passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." * * * * * * * * * * * * * Mayor Rhodes announced that the closed session, pursuant to Texas Government Code Section 551.071 concerning matters which are the subject of attorney-client privilege concerning the City's adopting ordinance(s) regulating discharge of certain materials into the City of Corpus Christi Municipal Separate Storm Sewer System, would not be held. She said the Council would discuss the issue during open session. The Mayor then opened discussion on Item 6, discharge of materials into the storm sewer system. Mr. Hennings noted that the Council approved the first reading of the ordinance last week. Since then staff received verbal advice from the Environmental Protection Agency (EPA) staff in Dallas, and city staff was following up on that advice by asking the Council to amend the ordinance before the second reading. He explained that in the federal regulations, there are some exceptions specifically listed, and the EPA said Corpus Christi should specifically list those as exceptions in its ordinance. Mayor Rhodes asked Mr. Hennings to delineate those exceptions, and he explained that the following discharges would be allowed into the municipal separate storm sewer system: a discharge under a valid National Pollution Discharge Elimination System permit; resulting from fire fighting activities or from washing an automobile at a residence or charitable car wash; potable water, surface waters, or street wash water; resulting from flushing a water supply line; a non -point source discharge from agricultural activities; or condensate from cooling systems. Mr. Hennings said staff was also proposing that the ordinance state that "overspray and small amounts of runoff from irrigation of vegetation that pools in a gutter or on a road surface, but does not flow in a steady stream into any manhole or catch basin, is not considered an illicit discharge into the municipal separate storm sewage system." Mr. Jay Reining, Assistant City Attorney, explained that the ordinance described a discharge of any surface waters as including water from diverted stream flows; uncontaminated rising ground water; water from foundation drains, crawl space pumps, and footing drains; water from springs; and flows from riparian habitats and wetlands. Minutes Regular Council Meeting May 28, 1996 Page 12 Mr. Hennings said EPA officials also said that Corpus Christi has some existing ordinances which, if read literally, would prohibit any discharges into the drainage system, and they should be corrected. Consequently, staff was proposing that Sections 2-6 be accepted. Mayor Rhodes called for comments from the audience on the motion to amend (Item 6.b.), and there were none. City Secretary Chapa polled the Council for their votes as follows: 6.b. M96-147 Motion to amend, prior to second reading, ordinance regulating the discharge of certain materials into the City of Corpus Christi Municipal Separate Storm Sewer System. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; McNichols absent. Responding to Council Member Martin, Mr. Hennings said the action was intended to correct some errors in the Code of Ordinances. He added that one other area of concern regarded the blowing of grass clippings into the street; he noted that the EPA said the city did not have to prohibit that activity. Mr. Hennings said it is common knowledge that grass clippings are a source of pollution in the drainage system, and he suggested that the Council consider putting that prohibition back in the ordinance. Mayor Rhodes made a motion, seconded by Council Member Cooper, to prohibit the blowing of grass clippings into the storm sewer system. Council Member McNichols said he agreed with that, but he observed that the city encourages people not to bag their grass clippings for disposal at the landfill, while commercial operators are charged for their disposals. Mr. Hennings commented that staff invited lawn care professionals to a meeting, and they said grass clippings should be blown back onto lawns, not into the street; however, they acknowledged that the practice is different from the intent. City Attorney Bray said staff suggested the following language with regard to Mayor Rhodes' motion: "Intentionally sweeping or blowing grass clippings into the streets and gutters is prohibited." (Section 55-201 of the Code) Mayor Rhodes amended her motion to adopt that language, and the motion passed unanimously. Mr. Bray also referred to two technical amendments that needed to be made to correct two reference errors; Mayor Rhodes made motions to correct those errors, and they passed unanimously. City Secretary Chapa polled the Council for their votes as follows: Minutes Regular Council Meeting May 28, 1996 Page 13 6.c. ORDINANCE NO 022583 Amending the City Code of Ordinances, Chapter 55, regulating the discharge of certain materials into the City of Corpus Christi Municipal Separate Storm Sewer System; providing a penalty for the violation of such provisions; and directing publication of subject ordinance. The foregoing ordinance passed on second reading, as amended, by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 7, brush truck cabs and chassis. Responding to Council Member McNichols, Fire Chief J.J. Adame said they had extensive consultation with the fire fighters who actually fight the brush fires, and they all felt this was the best piece of equipment the city could purchase to fight brush fires. He added that each piece of equipment contained a rebuilt and reconditioned diesel engine. In reply to Council Member Betty Jean Longoria, Chief Adame said that with this purchase, the Fire Department would replace two brush trucks that are in fair to poor condition, thus maintaining four brush trucks in service. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 7. M96-148 Motion approving the purchase of two truck cab and chassis in accordance with Bid Invitation No. BI -0238-96 from Memphis Equipment Company, Memphis, Tennessee on the basis of only bid in the total amount of $106,036. The cab and chassis, when equipped with water tank, pump and equipment, will be used by the Fire Department for fighting brush fires. The equipment will be funded through the City's lease/purchase contract with G.E. Capital. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye"; Martin absent. * * * * * * * * * * * * * Minutes Regular Council Meeting May 28, 1996 Page 14 Mayor Rhodes opened discussion on Item 8, revisions to the Utilities Capital Improvement Program (CIP). Mr. Hennings explained that the capital budget adopted last year anticipated that the city would have a bond sale in the spring of 1996 for some of the utility projects, but that bond sale was postponed until the fall. However, said Mr. Hennings, there are some projects that need to be completed and available funds need to be reallocated in order to do that. One of those items was Item 14 on the day's agenda, the rehabilitation of some water wells in the Lake Corpus Christi reservoir area. He said that a few other projects will be needed that are necessitated by the current, but unforeseen, drought situation. Mr. Hennings said that the Del Mar neighborhood street improvements program will go to contract before the fall bond sale, so funds will need to be available for the utility relocation portions of those projects. Responding to Council Member Martin, Mr. Hennings said the funds for the Del Mar improvements were for the water and wastewater systems. Ms. Grace McNett, Capital Budget Officer, said the wastewater costs were included in the proposed 1995-96 bond sale that was going to carry over into 1996-97. She said the water costs did exceed the original estimates because the engineers developed the estimate based on the Phase II Del Mar area improvements, which did not involve replacing the service lines from the rear easement to the front right-of-way, as Phase III does. In reply to another question from Mr. Martin, Ms. McNett said the estimate for street costs for Del Mar area Phases I and III was almost $4.2 million. Mr. Hennings added that in the original capital budget, there was a listing under utility relocations of all the projects that would be included. Mr. Martin asked that this item be postponed pending more detailed information. Mr. Hennings said this issue came before the Council due to the need for funding of the Lake Corpus Christi wells rehabilitation. He said staff planned to come before the Council at the next meeting during the discussion of water issues with a proposed revision to the whole capital improvement program to incorporate the necessary water projects. Mr. Hennings said staff could return during the meeting with a funding proposal for Item 14, wells rehabilitation. Mayor Rhodes called for a 10 -minute recess while the staff prepared that information. Returning to the discussion of Item 8, Mr. Hennings suggested that Item 8 be postponed to another Council meeting, and Item 14 be held until the end of the day's meeting while staff prepares a certification of funds for that item. Minutes Regular Council Meeting May 28, 1996 Page 15 8. POSTPONED Bot,d Sale. **r*rrrssss** Mayor Rhodes opened discussion on Item 9, water supply and drought contingency plan issues. Mr. James Dodson, Regional Water Director, said the reservoir levels continue to decline; as of that day the combined system storage was at 32.6%, down from 56.1% a year ago. He said that during the month of May there has only been a measurement of approximately 400 acre-feet of inflow into the reservoir system, which is less than the 500 acre-feet per month of credit that is allowed for the pass-throughs of flows to the bays and estuaries. Mr. Dodson said one of the major factors was evaporation, which will continue to decrease the levels if no inflows are received. However, he said, water conservation efforts were improving. During May to date, statistics showed that the city had saved almost 13% of water use over the month of May 1995. He noted that the city had been in Condition II of the drought contingency plan for only three weeks, and the community should be commended for its efforts. Mr. Dodson also reported that surrounding communities had been passing ordinances that parallel Corpus Christi's water ordinance as quickly as they could. Council Member Martin requested an exact report on which cities had implemented their own ordinances. He also asked for a copy of the complete drought contingency plan, and for a breakdown of the factors involved in the decline in reservoir capacity this year over last year. Responding to Council Member John Longoria, Mr. Dodson said the current trigger level for Condition III was 11% of system capacity, which was an issue that the Water Conservation Advisory Committee would be considering. He said that he felt 11% was too low and should be raised. Mr. Dodson added that if Corpus Christi has not received any inflows by October, it should seriously be considered whether to enact Condition III at that time. Mr. Longoria also asked if the city issued any type of permit allowing people to use extra water, and Mr. Hennings said the city did not. Mr. Dodson added that in the near future, staff will be asking the Council to appoint an Allocation Committee. Council Member Heldenfels said he thought the other municipal water users had to conform to Corpus Christi's regulations. Mr. Dodson and Mr. Bray said they did, but the timing of getting their ordinances through their respective governing bodies varied. Minutes Regular Council Meeting May 28, 1996 Page 16 Council Member McNichols said he and others expected there to be a two- to three-week lag time in getting the other cities' ordinances passed. He reiterated that the city's goal was to start conserving water as efficiently as possible with a minimum impact on businesses. Mr. Hennings referred to a memo from staff to the Council concerning a draft letter to water customers asking them to report the number of people residing in their households in preparation for Condition III. Dr. McNichols suggested that that letter not be sent out yet so that it can be discussed by the Water Conservation Advisory Committee first. # # # # # # # # # # # # # Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 10 through 25, and Council Members requested that Items 10, 14, 16, 18, 19, 22, and 25 be withheld for discussion. City Secretary Chapa polled the Council for their votes and the following were passed: 11. M96-150 Motion approving the purchase of one motorgrader in accordance with Bid Invitation No. BI -0169-96 from Waukesha Pearce Industries, Corpus Christi on the basis of low bid meeting specifications for the amount of $93,480. The unit is budgeted in the 1995-96 Budget as a replacement unit for the Street Services Department. The equipment will be funded through the City's lease/purchase contract with G.E. Capital. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 12. M96-151 Motion approving a supply agreement with the Gulf Business Forms, Corpus Christi, Texas in accordance with Bid Invitation No. BI -0173-96 for approximately 1,285,000 mail -out envelopes and 1,285,000 return envelopes based on low bid for an estimated annual expenditure of $35,388.90. The term of the agreement 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 are budgeted in FY 95-96 by the Utilities Business Office. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." Minutes Regular Council Meeting May 28, 1996 Page 17 13. M96-152 Motion approving a supply agreement with S.S.P. Petroleum, Corpus Christi, Texas in accordance with Bid Invitation No. BI -0210-96 for approximately 800,000 gallons of reformulated gasoline; 123,000 gallons of commercial gasoline; and 780,000 gallons of diesel fuel based on total low bid for an estimated annual expenditure of $1,486,321.50. The term of the agreement 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 are budgeted in FY 95-96 by the using departments. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 15. M96-154 Motion awarding a contract in the amount of $32,274 to ECS Construction for structural and roof repairs at the Oso Municipal Golf Course Club House. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 17. M96-156 Motion awarding the contract for engineering services on the Upriver Road Water Transmission Main Project - Phases II and III, to J.R. Thompson Engineering and Bass & Welch Engineering and authorization of Phase 2 services in an amount not to exceed $125,500. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 20.a. M96-158 Motion approving the reimbursement application submitted by Mau and Dolce, Inc. A Texas Corporation, dba Delta Tires of Corpus Christi, Inc. for the installation of 923 linear feet of a 12 inch PVC water grid main. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." Minutes Regular Council Meeting May 28, 1996 Page 18 20.b. ORDINANCE NO. 022588 Ordinance appropriating the amount of $37,995.87 from the Water Arterial Transmission and Grid Main Trust Fund No. 143-246.95 to pay Mau and Dolce, Inc. A Texas Corporation, dba Delta Tires of Corpus Christi, Inc. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 21. ORDINANCE NO. 022592 Ordinance authorizing the City Manager to execute a Special Warranty Deed for surplus property - triangular in shape, 0.382 acres in size out of the Hopper Addition bounded by Fort Worth, Brawner Parkway, and the Bayshore Bible Church - to Bayshore Bible Church, EFCA for $8,250. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 23.a. ORDINANCE NO. 022589 Ordinance authorizing the City Manager or his designee to execute an interlocal agreement with the Coastal Bend Council of Governments whereby the City will develop a Centralized Composting Program. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 23.b. ORDINANCE NO. 022591 Ordinance appropriating $130,000 from the Coastal Bend Council of Governments as a pass- through grant from the Texas Natural Resource Conservation Commission to fund a Centralized Composting Program and adding $130,000 to the FederaUState Grants Fund No. 162. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." Minutes Regular Council Meeting May 28, 1996 Page 19 24. FIRST READING ORDINANCE Amending the Code of Ordinances, Chapter 53 - Traffic, Section 53-252, Schedule III - Parking Prohibited at All Times on Certain Streets by restricting curbside parking at all times on both side of McKinzie Road, between McKinzie Lane and a point approximately 375 feet south of Haven Drive. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 10, recruitment profile for City Manager. Council Member John Longoria commented that the recruitment profile prepared by Mr. Norman Roberts and Associates Inc. was extensive, and would be available to the public. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 10. M96-149 Motion approving the "Recruitment Profile" for the City Manager's position as prepared by Norman Roberts & Associates, Inc. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 16, gas telemetry pressure monitoring system. Responding to Council Member Martin, Mr. Hennings said that even if Phase 2 of the project was not completed next year, it still needed to be done at some point. 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 May 28, 1996 Page 20 16. M96-155 Motion awarding a construction contract in the amount of $311,200 to Team Controls, Inc. for Phase 1 and Phase 2 of the Gas Telemetry Pressure Monitoring/Control System with the provision that Phase 2 work will be performed only if sufficient funds are appropriated for that purpose on or after August 1, 1996. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 18, Minority Business Opportunity Committee. Council Member Martin said that during the Community Development Block Grant program hearing in April, there had been discussion about the MBOC program, as well as confusion concerning the defmition of "minority" in a pamphlet about the program. Mr. Martin had asked that the MBOC director write a memorandum that sets forth an exact definition; however, he never received that memorandum and he felt it needed to be clarified. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 18. M96-157 Motion authorizing the City Manager or his designee to submit an application to the U.S. Department of Commerce, Minority Business Development Agency (MBDA) for $70,000 to continue the Minority Business Opportunity Committee (MBOC) Program. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 19, agreements for summer recreation program. Council Member John Longoria said he wished to recognize the effectiveness of this program. Responding to a question from Mr. Longoria, Mr. Malcolm Matthews, Director of Park and Recreation, said only the school site needed to qualify for the program (over 50% of the students at a particular school have to be eligible for the free or reduced lunch program during the school year). He said any child between the ages of one and 18 can receive a free lunch or free snack during Minutes Regular Council Meeting May 28, 1996 Page 21 the summer at one of the 12 designated sites. Mr. Matthews added that staff applied for a Texas Parks and Wildlife grant to conduct an outdoor outreach program, and the city was awarded the largest grant in the state of $20,000. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 19.a. ORDINANCE NO. 022584 Ordinance appropriating a grant in the amount of $126,663 from the Texas Department of Human Services to operate Summer Food Service Program for Summer Recreation Program participants aged one to eighteen years; amending Ordinance No. 022279 which adopted the FY 1996-95 Budget by adding $126,663 to the Federal/State Grants Fund No. 162. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 19.b. ORDINANCE NO 022585 Ordinance authorizing the City Manager or his designee to execute an Interlocal Governmental Agreement with Corpus Christi Independent School District to provide summer food services for Summer Recreation Program. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 19.c. ORDINANCE NO 022586 Ordinance authorizing the City Manager or his designee to execute an Interlocal Governmental Agreement with Corpus Christi Independent School District to provide transportation services to Summer Recreation sites. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." Minutes Regular Council Meeting May 28, 1996 Page 22 19.d. ORDINANCE NO. 022587 Ordinance appropriating $20,000 from the Texas Parks and Wildlife Department for Community Outdoor Outreach grant to the Federal/State Grants Fund No. 162. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J Longoria, Martin, and McNichols voting "Aye." * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 22, completion of the Columbus Fleet Shipyard improvements and museum expansion. She then made a motion to amend Item 22.b. as follows: delete Section 2 authorizing the appropriation, and Section 3 amending the FY95-96 Capital Budget by the increased appropriation, and renumbering Section 4 to Section 2. Council Member Martin seconded the motion. Mr. Hennings explained that the reason for the amendment was that it called for appropriating funds that were already appropriated. Responding to a question from Mr. Martin, Mr. Utter said while the project is substantially complete, the contractor still has some work to finish. Mr. R.H. Shackelford, Director of Engineering Services, added that there is an outstanding change order of about $22,000 that is in the process of being finalized. He said "substantially complete" means that the facility can be used, but the project is not yet being closed out. Mayor Rhodes called for comments from the audience, and there were none. She then called for a vote on the motion to amend Item 22.b., and it passed (J. Longoria abstaining). City Secretary Chapa polled the Council for their votes as follows: 22.a. RESOLUTION NO. 022590 Resolution by the City Council of the City of Corpus Christi, Texas declaring the construction of the Columbus Fleet Shipyard and the Seeds of Change expansion at the Corpus Christi Museum of Science and History as substantially complete. The foregoing resolution passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, Martin, and McNichols voting "Aye"; J. Longoria abstaining. Minutes Regular Council Meeting May 28, 1996 Page 23 22.b. ORDINANCE NO. 022591 Ordinance authorizing the transfer of $282,323 from the No. 577 Museum Expansion/Bayfront Arts and Sciences Capital Improvement Fund into the No. 300 General Obligation Debt Service Fund. An emergency was declared and the foregoing ordinance passed, as amended, by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, Martin, and McNichols voting "Aye"; J. Longoria abstaining. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 25, contract management agreement with the Texas State Aquarium Association (TSAA). Council Member Martin asked why similar action was not taken for a contract at the airport. Mr. Hennings replied that the distinction was that the city is governed by Federal Aviation Administration regulations at the airport, which require qualification -based proposals --local preference cannot be part of the solicitation for proposals. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 25.a. M96-_159 Motion authorizing the City Manager or his designee to enter into a Contract Management Agreement with the Texas State Aquarium Association (TSAA). The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 25.b. M96-160 Motion authorizing the waiver of the 75% local participation rule in soliciting Requests for Proposals from consultants for professional services necessary to develop Phase 2 Design, "Aquarium 2000" Concept. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." Minutes Regular Council Meeting May 28, 1996 Page 24 * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 14, Lake Corpus Christi reservoir area well rehabilitation. Mr. Hennings said staff was changing the source of funding to the Water Department operating budget, and he had the certification of funds to do so. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 14. M96-153 Motion to award a construction contract in the amount of $55,500 to Layne -Texas (a division of Layne, Inc.) for the Lake Corpus Christi Reservoir Area Wells Rehabilitation. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." * * * * * * * * * * * * * Mayor Rhodes announced that Item 27, closed session pursuant to Texas Government Code Section 551.074 regarding personnel matters in the Solid Waste Services Department, was being postponed until the June 11, 1996 Council meeting, with the understanding that no action will take place on that issue until that time. In addition, she said that Item 29, closed session pursuant to Texas Government Code Section 551.071 regarding Richard J. Herschbach, an Individual and on behalf of Retired Firefighters and Benefit Recipients of the Corpus Christi Firemen's Relief and Retirement Fund, v. City of Corpus Christi, and the Board of Trustees of the Corpus Christi Firemen's Relief and Retirement Fund, Cause No. 894954-D, 105th District Court, Nueces County, Texas, was also being postponed until a future date. The Mayor then announced that the Council was going into closed session concerning Items 26 and 28 as follows: Item 26 - pursuant to Texas Government Code Section 551.074 regarding new or interim City Manager selection, with possible action thereafter in open session; and Item 28 - pursuant to Texas Government Code Section 551.071 regarding contract negotiation with Corpus Christi Police Officers Association and related proceedings, with possible action in open session. The Council went into closed session. The Council returned from closed session. Minutes Regular Council Meeting May 28, 1996 Page 25 * * * * * * * * * * * * * Mayor Rhodes called for the City Manager's report, in which Mr. Garza presented the FY96- 97 city budget. He explained that this current year budget was probably the most difficult budget that he has had to administer because the fiscal year began about $2 million in arrears. He pointed out that the city had sufficient reserves to cover the overbudgeting, but last August staff began looking at ways to pare back the budget. Other factors that made the current budget difficult included an audit which indicated that the fund balance had been overstated in the proposed budget by about $500,000, and the auditors also suggested that staff change the method of allocation for the internal service funds, which resulted in an increase in General Fund expenditures of about $1.2 million In addition, sales tax revenue was not as high as had been anticipated. Mr. Garza said staff worked hard to reduce expenditures so that the ending fund balance for the General Fund will be in excess of $2.8 million, of which about $2.4 million will be unreserved and can be used to fund operations for the coming fiscal year. He noted that the Council's long-term goal is to try to make current revenues accommodate current expenditures so that the fund balance will not be depleted, which is often difficult. Mr. Garza said that despite the many challenges that were faced in the current fiscal year, several accomplishments were still made. These included the final adjudication of the Lake Texana contract, which vindicated City Attorney Bray; the securement of the new landfill site and the beginning of the process of securing the necessary permits; the addition of police officers and fire fighters, as well as the purchase of police cars and fire trucks; the opening of the Natatorium, which was a joint effort of the city and Corpus Christi Independent School District; several road improvements throughout the city; negotiation of the sale of land to the General Services Administration for a new federal courthouse and continuation of the Gateway Project, which required the cooperation of the Downtown Management District, Mr. Robert Rowling, and the efforts of Assistant City Manager Utter; and preparation of the flexible attainment agreement to improve the city's air quality, which was accomplished with the assistance of Deputy City Manager Hennings. Challenges that continue to face the city include the drought and the many problems that situation poses; the need for improvements to the drainage system; the necessity of refinancing the Choke Canyon debt; and the complex problem of youth violence, among others. Mr. Garza said that for the 1996-97 fiscal year, staff projected a closing balance on July 31, 1997 of $1,403,767. He said that if additional funds become available, he recommended that the following items be added to the budget: employee pay increase, $1 million; fund 53 unfunded positions, $1 million; increase the street pavement base rehabilitation program, $623,000; replace four animal control vehicles, $80,000; and repair various facilities, $303,000. Minutes Regular Council Meeting May 28, 1996 Page 26 Mr. Garza concluded his message about the budget by saying that city employees are highly professional in a variety of tasks, many of which are taken for granted. He then thanked the Council for giving him the opportunity to be the City Manager for the last eight years, and he wished them the best in the future. The City Manager then described in some detail different aspects of the preliminary budget. He said the estimated revenues for FY95-96 are $107,526,223; and for FY96-97 they are estimated at $109,043,034, with most of the increase expected in the general property tax. With regard to expenditures, he said most of the increases are derived from general government and public safety. He said the preliminary budget is slightly more conservative than last year's budget, including in the areas of wages and salaries, and fire and police uniform personnel. Mr. Garza said he is again recommending an increase in recreation fees (about $85,000 in the General Fund budget). Mr. Garza also discussed the budget for the Combined Utilities Fund. He said staff has prepared two budgets --a drought contingency budget and a non -drought budget, with the largest difference in the projected water revenues. He said the gas and wastewater funds are not greatly affected by the drought. However, if the drought continues, the Council will probably be taking action to impose some water surcharges to ensure that the financial strength of the Combined Utilities Fund is maintained. He said he was recommending a major change in the practice of funding the general obligation debt service reserves. Mr. Garza explained that staff uses the city's good rating to borrow money on behalf of any of the city's funds, but general revenues are used to fund the reserves. He said a better way would be to have the funds that utilize the credit of the city fund those reserves; for example, he is recommending that the airport and the drainage utility fund their own reserves in the General Obligation Debt Service Fund. The City Manager also recommended that the city continue its modified freeze on hiring. Responding to Council Member Martin, Mr. Garza said the preliminary budget contained a 1.1 cent tax rate increase, which the Council had previously approved. Mr. Martin commended Mr. Garza on finding a creative way to fund the city's debt service reserves. Mr. Garza noted that the city's bond counsel, McCall, Parkhurst & Horton, had reviewed and approved the city's funding practices. He noted that it has been very important that the city protect the 75% rule in the General Obligation Debt Service Fund, and that the General Fund ending balance be much higher than had originally been proposed. Mr. Martin then asked how close the amounts were for current revenue as compared to current expenditures, and Mr. Garza replied that there was still a difference of about $2 million, which was about the same as last year. Minutes Regular Council Meeting May 28, 1996 Page 27 Council Member McNichols pointed out that the 1.1 cent tax rate increase was approved by the Council in order to complete the 1986 bond program, and it will take effect in the 1996-97 fiscal year. Mr. Garza noted that the debt service schedule called for selling bonds that the city could take advantage of right now to begin completing the 1986 bond program; however, the effect on the tax rate would not take place until FY96-97. Responding to a question from Dr. McNichols, Mr. Garza explained that in the past, the reserves for bonds that were issued on behalf of funds other than the General Fund had been paid from general revenues, which essentially either belonged to the General Obligation Debt Service Fund or the General Fund. He said it is more appropriate to have the activities that borrow the money also fund the reserves, as well as the annual debt service. Mr. Hennings then reported that there would not be a Council meeting on June 4, 1996; items scheduled for the June 11 meeting include water issues, such as the Garwood option, and the adult business ordinance. Mayor Rhodes reiterated that there would be a reception for Mr. Garza and his family in the near future, and she praised Mr. Garza, saying the Council will miss him both professionally and personally. * * * * * * * * * * * * * Mayor Rhodes called for Council concerns and reports. Council Member John Longoria requested more information about the city's hurricane plan, particularly with regard to evacuating senior citizens. Mr. Hennings noted that there was a volunteer committee which works every year on accumulating a list of people with special needs and making arrangements with churches and different groups to assist in that effort. Mr. Longoria also requested an outline of the city's commitment to the factory outlet mall, and he commented that there already was scheduled a discussion on June 11 about the sale of land for the new federal courthouse. Council Member Black requested a report about the Bands by the Bay Unite music festival that was held during Memorial Day Weekend. Mr. Utter said staff only had preliminary figures, but they would provide more information. Mr. Longoria asked if the city could match the funds that were raised from that event that will benefit the Mayor's Task Force on Youth Violence. Mr. Hennings replied that the city would not be in a position to make a gift of any money; however, if there was some service that the Council would want to purchase for the city, staff could arrange something like that. Mr. Longoria asked staff to investigate it further. Minutes Regular Council Meeting May 28, 1996 Page 28 Council Member Betty Jean Longoria asked about the status of construction on IH -37 from Rand Morgan to Violet Road. Mr. Hennings said staff would inquire with the Texas Department of Transportation. Mrs. Longoria commented about a dangerous on-ramp near Violet Road. Council Member Cooper reported that she and Ms. Susan Cable, Director of Communications and Quality Management, had attended the National Neighborhood USA convention in Little Rock, Arkansas, where they presented their handbook about neighborhood associations. She said that a noted expert on gangs had spoken during that conference, and she said she would invite him to come to Corpus Christi to address a meeting of the Mayor's Task Force on Youth Violence. Mrs. Cooper thanked those who attended the concert last weekend, and said the task force was accepting donations. * * * * * * * * * * * * * Mayor Rhodes called for petitions from the audience. Mr. Lewis Lovelace, 1549 Casa Grande, referred to an article in the Flour Bluff Sun in which he said that homeowners, who use only 22% of the city's water, have to bear 100% of the burden of water conservation, and industry had no enforceable restrictions. He also suggested that the rate for charging for water should be changed. Mayor Rhodes replied that industries have taken extensive steps to conserve water, and the city's drought management policy will continue to try to protect jobs. There being no further business to come before the Council, Mayor Rhodes declared the Council meeting adjourned at 6:30 p.m. on May 28, 1996. * * * * * * * * * * * * *