Loading...
HomeMy WebLinkAboutMinutes City Council - 07/23/1996I 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 July 23, 1996, which were approved by the City Council on July 30, 1996. WITNESSETH MY HAND AND SEAL, this 30th day of July, 1996 Armando Chapa City Secretary SEAL 4.00-'6° MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting July 23, 1996 2 p.m. PRESENT Mayor Mary Rhodes Mayor Pro Tem Dr. Jack Best Council Members: Betty Black Tony Heldenfels Betty Jean Longoria John Longoria Edward Martin Dr. David McNichols ABSENT Melody Cooper City S aff: Acting City Manager Bill Hennings City Attorney James R. Bray, Jr. City Secretary Armando Chapa Mayor Rhodes called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Pastor James Fields, Trinity Worship Center, following which the Pledge of Allegiance to the flag of the United States was led by Council Member Black. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Rhodes called for approval of the minutes of the regular Council meeting of July 16, 1996, and there being no corrections, she proclaimed them approved as presented. The Mayor then announced that Item 17 (one-way traffic pattern on IH -37 south frontage road) was being pulled from the day's agenda. * * * * * * * * * * * * Mayor Rhodes introduced Item 2, discussion of water supply issues. Mr. James Dodson, Regional Water Director, noted that the reservoir systems continue to decline due to the drought. In addition, the Agreed Order for freshwater inflows into the Nueces Estuary requires that about 492 acre-feet of water has to be passed through the Calallen dam by the end of the month. He said in terms of water demand, there have been encouraging reductions. Minutes Regular Council Meeting July 23, 1996 Page 2 Mr. Dodson also stated that the Regional Water Supply Task Force met last week and received a report from Koch Operating Systems on the cost of the Lake Texana pipeline. He reiterated that the conclusions reached in Koch's independent analysis are very similar to those in Phase 2 of the Trans -Texas Study. He said if the additional water supply and necessary infrastructure from Garwood are included, the total cost for the pipeline and the pump station is estimated at $132 million. HDR Engineering made a presentation at the task force meeting on the timetable for construction of the pipeline, saying it could be accomplished in 18 to 20 months. Other critical issues pertaining to the pipeline include financing and right-of-way acquisition. At their meeting, the task force members also created the following: a Subcommittee on Additional Water Supply, that would study the issue of additional water beyond what the city can acquire from Lake Texana and Garwood; and a subcommittee to deal with some of the cost -of - service issues. Mr. Dodson said the Water Conservation Advisory Committee is scheduled to meet on July 24, 1996 to discuss issues related to the implementation of the drought contingency plan, primarily the trigger level for Condition III. He said they intend to make a presentation to the Council during their first meeting in August. Mr. Dodson also commented that a decision was imminent from the administrative law judge from the Texas Natural Resource Conservation Commission (TNRCC) regarding the permit for the transfer of water from Lake Texana. In addition, a hearing was held last Friday in Corpus Christi by a Congressional subcommittee that has been dealing with the city's Choke Canyon title transfer legislation. He said the subcommittee is receiving input on the drought emergency in South Texas in order to introduce separate emergency legislation that provides some financial assistance to this area. A witness at the hearing from the Texas Water Development Board pointed out that Corpus Christi is the only major city in Texas that is facing a potential water interruption in the next several years. Council Member McNichols noted that he and Mr. Jerry Kane are the co-chairmen of the Regional Water Supply Task Force. He said that even with water conservation measures in place, there is a finite date at which the reservoir system will be depleted. He said the city needs to continue moving forward in its effort to secure additional water supplies by facing such challenges as permitting, financing, and right-of-way acquisition for the pipeline. Council Member Heldenfels said that based upon his experience, he felt it would take much longer than predicted to acquire the right-of-way and to construct the pipeline. He also contested the projected cost of the pipeline. Council Member Betty Jean Longoria asked about the severity of the Condition III provisions. Mr. Dodson replied that that is the first stage in which water rationing is imposed --upon both residents and commercialindustrial accounts. He noted that with the onset of residential water allocations, outdoor watering is effectively eliminated, which impacts the green industry and the Minutes Regular Council Meeting July 23, 1996 Page 3 swimming pool industry, among others. Mayor Rhodes opened discussion on Item 3, a report by the Drainage Utility Ad Hoc Committee on establishment of a drainage utility and rate structure. Mr. Willard Hammonds, Chairman, said the other members of the committee are: Jim Barnett, Jesse Barrera, Gloria Hollister, Rex Kinnison, Fernando Morales, Mike Pusley, Stephan Smith, and Brooke Sween -McGloin. He said they have been meeting since December 1995 and have received much input from the staff in studying this issue. Mr. Hammonds said the mission of the committee, as revised and approved on April 25, 1996, was: "To make a recommendation to the City Council whether the city should establish a drainage utility. To recommend a service level plan and a schedule of rates and charges that will provide the revenues necessary to support that level of service." He went on to say that the committee voted in favor of a resolution (with one member abstaining) strongly recommending that the City Council not establish a drainage utility for the management of storm water. He said the committee is satisfied with the current level of service, and perceives the creation of a drainage utility as "a method that circumvents the 6% utility rate cap approved by the voters" The resolution goes on to state that "if a utility is formed, the City Council should provide an equivalent reduction in the Combined Utility Fund." Mr. Hammonds said the committee also passed a resolution recommending that the service level funding be limited to a total of $4,118,996, and another resolution recommending that the city adopt the rate structure prepared by the staff, noting that that rate structure should be subject to the 6% utility rate cap that is imposed upon other utility charges. Ms. Sween -McGloin, another member of the ad hoc committee, read from a prepared statement she distributed to the Council. In it she stated that she strongly disagreed with the recommendations made by the committee members, who she said were unwilling to fulfill the mission charged to them by the City Council. Ms. Sween -McGloin addressed each of the three recommendations, saying that the current level of drainage service and infrastructure are not adequate and the amount of funding they recommended is probably a fraction of what is needed. She urged the Council to reject the committee's recommendations; appoint a new committee; conduct a regional "build -out" study; develop strategies to manage stormwater with other co - permittees; and hire an environmental engineer to be on the staff of the Drainage Utility District. Mr. Barnett, a committee member, agreed that the city should hire an environmental engineer. He also suggested that the city introduce the reading of water and gas meters by Minutes Regular Council Meeting July 23, 1996 Page 4 homeowners; prioritize the cleaning out of stormwater collection boxes just prior to the "wet" months; and start a public information campaign to encourage homeowners to clean their street gutters on a periodic basis. A fourth committee member to speak was Mr. Pusley, who said that they worked very hard on some critical issues. He said the majority of the members felt that one way the city could save money was by expanding the recycling program and reducing garbage pick-up from twice a week to once a week. Mayor Rhodes thanked the committee members for the time they invested in this effort. She said she did not know how confusion about the committee's mission had arisen, but the Council had spent months discussing what would be a fair way to structure the drainage utility rates, and that was why the committee was formed. The Mayor asked what the next step should be, and Acting City Manager Hennings suggested that the Council schedule a follow-up discussion on this issue in August after the budget is adopted. She requested a staff report about the reason for the drainage utility. Referring to Ms. Sween-McGloin's suggestion about forming a new committee, she said it was now the Council's responsibility to complete the task. Council Member John Longoria asked about the staff's position on the committee's recommendations. Mr. Carl Crull, Assistant City Manager for Public Works and Utilities, said there were ideas that had not yet been discussed with other staff, but they would provide a report. Council Member Martin said the staff's report should address several issues, including that the question of the establishment of a drainage utility should be answered regardless of revenue needs, but rather on the basis of proper accounting and budgeting procedures. Secondly, if it is determined that a utility is necessary, the source of the equivalent reductions will have to be demonstrated. He said from that point, the Council would need to decide if those funds that are being reduced are required for other expenditures, whether it be the pipeline, water or sewer capital improvements, or others. Mr. Martin said there was also a serious credibility issue involved, since the committee was not convinced --after receiving a great deal of information --that a drainage utility was necessary. He said the more important problem facing them was whether the city would have a water supply in two years, and their energy should be directed toward that. Mr. Martin added that staff should begin the discussion in August with some level of agreement with the committee. Council Member McNichols asked what other cities in Texas have a separate drainage utility. Mr. Crull replied that they included Austin, Arlington, Plano, San Antonio, Dallas, Ft. Worth and Lubbock. Dr. McNichols asked if their water rates are substantially less than Corpus Christi's rates, Minutes Regular Council Meeting July 23, 1996 Page 5 and Mr. Crull said they are not. Council Member Black thanked the committee members for their work. She said she would trust the committee's opinion on this issue. Council Member Best said he also appreciated the committee's efforts, but he did not think they understood the charge that the Council gave them, namely, that they were to devise a rate structure that was fair to everyone --from big developers to small homeowners. He said the city is having great difficulty due to the 68 cent tax cap that was imposed. He said if the citizens want to continue receiving the current level of services, they have to pay for them. Dr. Best noted how difficult the current budget has been, and next fiscal year will be no different. He said the only choice is to reduce forces and cut salaries until the budget is balanced. Council Member Heldenfels said he agreed that the city needs to economize. He expressed concern that a few years ago, the Mercer study recommended that the stormwater utility be made a part of the Street Department, and he said he did not understand why that was never addressed. Council Member Betty Jean Longoria said she disagreed with the committee's assessment that the current level of drainage service is adequate. She pointed out that, due to lack of funding, the revised capital improvement plan includes the deferral of three drainage projects that were planned in her district. She said that despite the lack of rain now, the potential of flooding from improper drainage still exists. In addition, the idea of once -a -week garbage pick-up had been considered before, and many citizens strongly opposed it. * * * * * * * * * * * * * Mayor Rhodes called for a 10 -minute recess. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Items 5 and 6, pertaining to the current year's and next year's budgets. Mr. Hennings said that yesterday staff received the 1996 certified tax roll from the Nueces County Appraisal District and it reflects an increase in property values of 4.34% from last year's values. He said the preliminary FY96-97 budget had estimated a 1.5% increase in valuations, which was adjusted on July 19 to a 2.5% increase. Mr. Hennings noted that the increase also affects the effective tax rate, causing the proposed tax rate to exceed the 3% mark, requiring the city to advertise in the newspaper and to hold a public hearing on the adoption of the tax rate. He referred to a revised schedule on the adoption of the tax rate. Minutes Regular Council Meeting July 23, 1996 Page 6 Mr. Hennings also discussed a concern raised by the independent auditors regarding a proposed reconciliation of the General Fund administrative charges for FY94-95, which revealed an under -billing of $553,128 to the Combined Utilities Fund. He said the auditors were also concerned that the proposed allocation of cost of the self-insurance fund to the user departments was too low. Mr. Hennings said staff needed to discuss those issues further with the auditors, with possible amendments to the budget before its final passage. Council Member Martin pointed out that there was an option to the public hearing process with regard to the effective tax rate. He noted that the utility funds had been overcharged in other areas, and Mr. Hennings said staff made that adjustment. Responding to a question from Mr. Martin concerning the proposed reconciliation, Mr. Hennings said staff needed to ascertain the auditors' opinion on the proposal. In reply to Council Member McNichols, Mr. Jorge Garza, Assistant City Manager for Administrative Services, explained that the effective tax rate calculation yields a number that, when compared to the previous year's revenues, should equal the same amount. He said that as the valuations increase, the effective tax rate calculation decreases. Dr. McNichols pointed out that that had nothing to do with the 1.1 cent increase that was built into the FY96-97 budget in order to complete the 1986 bond program. Dr. McNichols asked if the overall tax rate in cities experiencing strong growth was decreased. Mr. Martin pointed out that new growth is exempted from the calculation. Responding to another question from Dr. McNichols, Mr. Garza said that there was a net increase of $775,986 in the General Fund from the preliminary budget to the revised budget with the inclusion of the actual assessed values; in the General Obligation (G.0.) Debt Service Fund, there was a net increase of $324,931. Mr. Martin asked if the total amount could be put into the General Fund, and Mr. Garza said that it could, but staff usually breaks it down according to the way the tax rate is broken down between the General Fund and the Debt Service Fund. A brief discussion ensued. Dr. McNichols asked why there was higher than normal "drag -up" pay on police and fire. Mr. Garza replied that there were several firefighters with many years of service who retired early in the calendar year. Dr. McNichols then asked about the proposed increase in the General Fund Internal Service cost allocations in the net amount of $1,223,373. Mr. Garza explained that those allocations are paid to the internal service funds from the General Fund for various services, such as MIS, Maintenance Services, Stores Fund, etc. He said there was an accounting procedure that had been performed but staff has since corrected it. Council Member Heldenfels noted that the auditor was present at the Council meeting, and he asked if it was appropriate to discuss his concerns at that time. Mr. Hennings said he planned to Minutes Regular Council Meeting July 23, 1996 Page 7 discuss the auditor's concerns with him at some length, and then he will bring a report back to the Council. Mr. Martin noted that the increase in property values of 4.34% from last year was a positive occurrence, and he asked for more information concerning new improvements. Mr. Hennings referred to a packet of budget -related items that was distributed to the Council. He said there were two action items on the day's agenda to approve the current year adjustments to the General Fund budget. Mr. Martin pointed out that if the ending balance for FY96-97 is accepted, that would mean $200,000 more that would be available. He also asked forverification that the Padre Isles interest is not being transferred, and Mr. Hennings said that was correct. Mr. Hennings then discussed the bond rating agencies' concern that the current year budget, which forecast a decrease in the ending balance from about $2.4 million at the beginning of the year to less than $1 million at the end of the year, was not satisfactory. He said staff assured the agencies that they would make adjustments and hold that balance. He said there was also concern about rebuilding that closing balance in the General Fund from its current level to the 1990 level of about $9 million by developing a financial plan. He said that means that next year's budget should end with a balance that meets or exceeds what the ending balance will be this year; however, it does not. Mr. Hennings said the agencies' third concern was that the revenues and expenditures matched, and they noted that for several years the city has had a rate of expenditures that is higher than the revenues, and this year is no exception. The Acting City Manager said that the preliminary budget responds in part to the agencies' concerns, but not strongly enough to ensure that they will not reduce the city's bond rating. In order to overcome that, adjustments will need to be made to increase the ending fund balance in the General Fund, and to further narrow the gap, if possible, between revenues and expenditures in that fund. One step in accomplishing that would be to place the additional ad valorem tax revenue in the General Fund. He added that the agencies had asked the city to develop a financial plan, and Mr. Martin had suggested that they formalize it via a Council resolution. He said another option would be to shift the revenue from the 50 -cent telephone tax into the General Fund to support the public safety communications system. Following a brief discussion, Mr. Martin asked what amount in the ending fund balance for FY 96-97 would satisfy the concerns of the bond rating agencies. Mr. Hennings replied that it should not be below the ending balance for FY95-96, which is estimated to be $2.8 million. He noted that the preliminary projected revenues (without the adjustments) for FY96-97 are $109,043,034, while the expenditures are estimated at $110,440,218, a difference of $1,397,184. Minutes Regular Council Meeting July 23, 1996 Page 8 Mr. Martin discussed the idea of adopting a very strong policy stating that it is the Council's intention to annually decrease the gap between revenues and expenditures, and to have them be equal by a certain date. He said if the approximately $1 million increase in property taxes were put into the General Fund, it would increase the revenue to over $110 million. Mr. Martin emphasized that if the bond rating agencies chose to lower the city's bond rating, the city would not be able to gain it back, and Mayor Rhodes agreed. Mr. Hennings said the next issue to be discussed was the use of the money (approximately $1.3 million a year compared to prior year expenditures) that has been saved on the cost of health insurance. He said staff has allocated the cost of health insurance to customer departments based on that anticipated cost in next year's budget. He said there was a suggestion that more of that cost be allocated to establish a contingency fund if the self-insurance plan is renewed in the future. Mr. Hennings said staff felt it was prudent to operate the health insurance system on a cost -basis, and there is less concern now about having to return to the self-funded plan. Regarding the employee cost -of -living pay adjustment, Mr. Hennings said the proposed budget includes increases for police and fire, but not for other city employees. He explained that the proposal that has the least impact on the budget would be to give a 3% increase for non-union employees for a period of eight months, which would cost a total of about $1.2 million, of which the General Fund portion would be $743,618. He said about half of that money could be generated from budget reductions in those departments, with the other half from either expenditure reductions or possibly some revenue items. Mr. Heldenfels said he felt that the non-union employees deserved a pay increase, but he was concemed about the cost to the budget during future fiscal years. He also noted that there were still 53 unfunded positions. Mr. Hennings then referred to a minimal purchase proposal for replacing equipment. The larger equipment (such as two brushloaders for Solid Waste Services) would be purchased on a lease/purchase basis, and the smaller equipment (such as one rotary mower for Park and Recreation and four pick-up trucks for Animal Control) would be purchased outright. The total cost adjustment to the budget would be $207,008. He said one way that would be paid for is through a reduction in the maintenance expenditures for equipment. Responding to Mr. Martin, Mr. Tom Utter, Assistant City Manager for Development Services, said the Solid Waste Services plan starting a year from now did include equipment; the two brushloaders now being recommended for replacement in FY96-97 would have been replaced in a subsequent year. Mr. Martin said that in order to avoid letting the city's equipment deteriorate even further, more needed to be done, and he suggested that the mower and Animal Control pick-ups be financed along with some additional equipment. Dr. McNichols said that he would support this proposal, but he expressed concern about the five-year commitment on the lease/purchase items. Minutes Regular Council Meeting July 23, 1996 Page 9 Mr. Hennings noted that there were requests for additional funding: $90,000 for additional funds for books; $35,000 for a marketing program from the Greater Corpus Christi Business Alliance; and a request from MH -MR for $10,000. Mr. Martin expressed concern that the request for additional funds for books arises every fiscal year, and he questioned whether it would constitute a decrease in the Library Department's inventory. Mr. Herb Canales, Director of Libraries, said that when they began increasing their stock about 10 years ago, they had about 225,000 volumes; that amount has increased to about 400,000 volumes now. He said the budget includes all formats in addition to books. He said they have also aggressively pursued other revenue sources. A discussion ensued. Responding to Mayor Rhodes, Mr. Hennings said staff was recommending the Council adopt the adjustments to the current budget and the proposed budget on first reading, and next week he would bring back an amendment citing specific changes, such as the employee pay raise, the replacement equipment and their off -sets. Mr. Martin asked about the reserve for Municipal Court Systems, and Mr. Hennings replied that that is the proceeds from the lawsuit settlement that was intended to be used for the replacement computer system. Mr. Martin asked if that amount could be spent, and Mr. Hennings said it could be, but it was intended to buy another computer system in the future. Mr. Martin then asked what the General Fund reserve appropriation was, and Mr. Hennings said it was $150,000. Responding to another question from Mr. Martin, Mr. Hennings said one of the changes to the General Fund budget for FY96-97 was an increase of $491,445 in sales tax revenue. Mr. Martin said the increase in ad valorem tax revenue would have to be reflected upon second reading of the ordinance. Mr. Martin asked if they were avoiding addressing the issue of service cuts that may be necessary but which will change some quality of life aspects. He said the Council needed to know what kinds of service cuts were made in the proposed budget, as well as the impact on service of the 53 unfunded positions. Responding to Council Member John Longoria, Mr. Hennings said staff recommended a 3% (as opposed to 2% or 1%) employee pay increase as a minimum in order to have a positive effect, even if it is postponed for a few months. Mr. Longoria suggested that there be a series of contingencies that address cuts in services over the next few months. Dr. McNichols said there has been a substantial decrease in revenues from recycled products, but the net cost per year for the recycling program is about $600,000. He said the recycling program could be postponed for a while during periods of budgetary constraint such as at this time. Mr. Hennings said the cost for the recycling program is factored into the rate base for solid waste, which is part of the General Fund. A brief discussion ensued. Minutes Regular Council Meeting July 23, 1996 Page 10 In reply to Council Member Best, Mr. Hennings said the 53 unfilled positions are not funded in the proposed budget. Aside from that, the rest of the budget provides for 98.5% of the payroll, which allows 1.5% for vacancies; however, the Police and Fire Departments are funded at 100% of payroll. Mayor Rhodes called for comments from the audience. Mr. J.E. O'Brien, 4130 Pompano, said the budget process has deteriorated over the last several years. He suggested that the Council reduce the proposed $5.4 million in drainage that is part of the water budget; as well as the amount of money that is given to the Downtown Management District. He said this difficult budget is the result of past actions where more money has been spent than was taken in. Mr. Clyde Travis Whitley, 6947 Everhart, spoke on behalf of the library system, saying it is one of the finest he has seen in the world. He said there is a direct correlation between illiteracy and social problems, and he asked the Council to consider restoring funds to the library that have been cut. Mayor Rhodes made a motion to delete paragraph 4 in the resolution for Item 5.a.; seconded by Dr. Best, and passed unanimously. Referring to Item 5.d., Mr. Martin said that would artificially inflate the city's debt service coverage for this year, which is going to show a decrease for next year, and he asked staff to consider that issue. City Secretary Chapa polled the Council for their votes as follows: 5.a. RESOLUTION NO. 022636 Resolution approving current year adjustments to the General Fund Budget. The foregoing resolution passed, as amended, by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent. 5.b. ORDINANCE NO. 022637 Ordinance appropriating $1,807,982.89 in interest earnings from the Unreserved Fund Balance of the Sanitary Sewer Capital Projects Fund and transferring it to the No. 300 General Obligation Debt Service Fund. An emergency was declared and the foregoing ordinance passed by the following vote: Minutes Regular Council Meeting July 23, 1996 Page 11 Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent. 5.c. M96-220 Motion transferring $200,000 from the Public Health and Safety Capital Projects Fund No. 535 into the General Obligation Debt Service Fund No. 300 and reserving these Funds for Solid Waste Debt. The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent. 5.d. ORDINANCE NO. 022638 Ordinance appropriating $68,055 from the unreserved fund balance of the No. 116 FAA Tower Fund and transferring it to the No. 117 Airport Fund; appropriating $27,347 - from the unreserved fund balance of the No. 116 Fund and transferring it to the No. 300 General Obligation Debt Service Fund to establish a separate Airport Debt Reserve of 75% of the FY 97-98 No. 116 Debt Service; appropriating $570,005 from the unreserved fund balance of the No. 117 Fund and transferring it to the No. 300 General Obligation Debt Service Fund to establish a separate Airport Debt Reserve of 75% of the FY 97-98 No. 117 Debt Service; amending the FY 95-96 Budget adopted by Ordinance No. 022279 by adding $95,402 to the No. 116 FAA Tower Fund and $570,005 to the No. 117 Airport Fund. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent. 6. FIRST READING ORDINANCE Adopting the City of Corpus Christi budget for the ensuing Fiscal Year beginning August 1, 1996; to be filed with the County Clerk; appropriating monies as provided in said budget; providing for severance. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent. Mr. Martin said the infusion of the additional $1.1 million from ad valorem taxes into the General Fund in order to meet those tests set by the rating agencies --as well as the establishment and maintenance of the 75% rule --were major long-term financial planning actions that will benefit the community for years to come. Minutes Regular Council Meeting July 23, 1996 Page 12 * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 7, fee increase for Emergency Medical Services. Mr. Hennings said the fee for administration of oxygen would be increased from $15 to $20, and the mileage charge would increase from $3 to $7 inside the city limits, and from $6 to $10 outside the city limits. In addition, a new surcharge of $100 for service to non-residents was being proposed, in addition to the regular charge for ambulance 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. FIRST READING ORDINANCF Amending the Code of Ordinances by amending Section 18-20, Ambulance Rates to provide for an increase in supplementary charges and to add a charge for services rendered to non- residents; providing for an effective date. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye"; Cooper and B. Longoria absent. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 8, approval of certain Park and Recreation fees and increases. Mr. Hennings said the proposal primarily involved new fees for a new service, and there are a few where the increase is greater than 25%, which requires Council approval. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 8. RESOLUTION NO. 022639 Resolution authorizing parks, recreation, cultural and leisure time activities rental fee and recreational fee increases and adding new rental fees and recreational fees. The foregoing resolution passed by the following vote: Rhodes, Best, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Black and Cooper absent. Minutes Regular Council Meeting July 23, 1996 Page 13 Mayor Rhodes recessed the regular Council meeting for the meeting of the Corpus Christi Industrial Development Corporation. The Mayor reconvened the regular Council meeting. * * * * * * * * * * * * * Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 10 through 20, and Council Members requested that Item 14 be withheld for discussion. Mayor Rhodes reiterated that Item 17 was being pulled. City Secretary Chapa polled the Council for their votes and the following were passed: 10. M96-221 Motion authorizing the City Manager to execute an escrow agreement with Texas Department of Transportation (TxDOT) in the amount of $2,261,882.39 with $758,000 being the City share of the Roadway Improvements and $1,503,882.39 as the estimated cost of utility (water and wastewater) relocations, replacements, adjustments and related administrative costs associated with the Holly Road Phase II Street Improvements Project. The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye"; Cooper and Martin absent. 11. M96-222 Motion authorizing the City Manager to sign an agreement with Wiltel Communications, Inc. for the purchase of a new telephone system at the Gas Department. The agreement is for an equipment purchase price of $28,559.74, which includes a two-year warranty. The agreement also includes three one-year warranty extensions for $3,162.85, $2,869.65. and $2,850.45, respectively. Funds are available in the Gas Department's FY95-96 budget to cover the purchase price of $28,559.74. Maintenance cost for years three, four and five will be budgeted on an annual basis as stipulated in the agreement. The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye"; Cooper and Martin absent. 12. M96-273 Motion awarding a contract in the amount of $71,200 to Team Controls for the O.N. Stevens Water Treatment Plant, Savage Lane and Caldwell Pumping Plants: instrument and control Minutes Regular Council Meeting July 23, 1996 Page 14 modification -1996. The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye"; Cooper and Martin absent. 13. M96-224 Motion awarding a contract in the amount of $277,203.68 to Quality Machine and Equipment Company for the O.N. Stevens Water Treatment Plant: equipment modifications - 1996. The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye"; Cooper and Martin absent. 15.a. M96-225 Motion authorizing the City Manager or his designee to accept a contract amendment to Interlibrary Loan grant contract #547.1, which increases the Interlibrary Loan grant by $1,320 from $141,732 to $143,052 and to execute all related documents with the Texas State Library. The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye"; Cooper and Martin absent. 15.b. ORDINANCE NO. 022640 Ordinance appropriating $1,320 from the Texas State Library for the continued operation of the Interlibrary Loan Center located at Corpus Christi Public Library for State FY 1995-96; amending Ordinance No. 022279, which adopted the FY 1995-96 budget, to increase appropriations in No. 162 State and Federal Grants fund by $1,320. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye"; Cooper and Martin absent. 16. M96-226 Motion authorizing the City Manager or his designee to submit an application, as co - applicant to the U. S. Department of Commerce, Minority Business Development Agency (MBDA) for $169,125 for a Minority Business Development Center grant. Minutes Regular Council Meeting July 23, 1996 Page 15 The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye"; Cooper and Martin absent. 17. PULLED Subseetioh (C). 18. FIRST RF,ADING ORDINANCE Amending the Code of Ordinances Section 53-252, Schedule III - Parking Prohibited at All Times on Certain Streets, by prohibiting curbside parking at all times on both sides of: Old Brownsville Road (F.M. 665), between Padre Island Drive and Airport Road, and Holly Road, between the Crosstown Expressway (SH 286) and Everhart Road. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye"; Cooper and Martin absent. 19. FIRST READINCi ORDINANCE Amending the Code of Ordinances, Section 53-254, Schedule V - Increase in state speed limit in certain zones by reducing the speed limit on South Staples Street from 45 mph to 40 mph between a point 500 feet south of Wooldridge Road to Saratoga Boulevard. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, and J. Longoria voting "Aye"; McNichols voting "No"; Cooper and Martin absent. 20. ORDINANCE NO. 022641 Authorizing the City Manager or his designee to execute approximately a five year lease ending December 31, 2001 with Southwest Airlines Company for ticket counter space, office space, gate space, apron space, and joint usage of the baggage claim space and other common areas at Corpus Christi International Airport in consideration of payment of fees that total $4.06 per enplaned passenger and are adjusted annually based on a fixed formula. The foregoing ordinance passed on second reading by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye"; Cooper and Martin absent. Minutes Regular Council Meeting July 23, 1996 Page 16 * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 14, professional services contract with Robert T. Bruner. Council Member John Longoria said he thought that the fee would be renegotiated to a lower fee. Mr. Hennings said that if the Council did not approve the proposal, staff would have to revisit the issue. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 14. FAILED TO PASS The foregoing motion failed to pass by the following vote: Rhodes, Best, and B. Longoria voting "Aye"; Black, Heldenfels, J. Longoria, and McNichols voting "No"; Cooper and Martin absent. * * * * * * * * * * * * * Mayor Rhodes announced the following closed session items: Item 21: closed session pursuant to Texas Government Code Section 551.071 regarding Pascual J. Arnal, et al v. City of Corpus Christi, No. 95-5591-1-1, 347th District Court Nueces County, Texas; and Item 22: 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. 89-4954-D, 105th 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 July 23, 1996 Page 17 * * * * * * * * * * * * * Mayor Rhodes called for the City Manager's report. Mr. Dodson announced that earlier that day, the Administrative Law Judge ruled that the upstream irrigators had no standing with regard to the permit for the transfer of water from Lake Texana, and the issue will be considered by the Texas Natural Resource Conservation Commission (TNRCC) at their September 4, 1996 meeting. He said that action should clear the way for the issuance of the permit. Mr. Hennings reminded the Council that the TNRCC will be having a meeting in Corpus Christi on July 26 to consider the Flexible Attainment Region Memorandum of Agreement for ozone. The meeting will be held at Texas A&M University -Corpus Christi at 1:30 p.m. He said one of the items scheduled for next week's Council meeting is a resolution authorizing a tax abatement for the Sitel Corporation, a telemarketing firm. Mayor Rhodes called for Council concerns and reports. Council Member John Longoria asked if the money received from the Regional Transportation Authority is allocated to the specific streets on which the buses have their routes. Mr. Hennings replied that it is not limited to those streets; he added that he would provide a report. Council Member Betty Jean Longoria submitted a petition concerning Item 17, one-way frontage road on IH -37. Council Member Best asked if staff makes nightly deposits of the monies it receives in the Utilities office, and Mr. Hennings said they did. Mayor Rhodes called for petitions from the audience, and there were none. There being no further business to come before the Council, Mayor Rhodes declared the Council meeting adjourned at 6:30 p.m. on July 23, 1996. * * * * * * * * * * * * *