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HomeMy WebLinkAboutMinutes City Council - 07/30/1996I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Regular Council Meeting of the City of Corpus Christi of July 30, 1996, which were approved by the City Council on August 13, 1996. WITNESSETH MY HAND AND SEAL, this 13th day of August, 1996 Armando Chapa G City Secretary SEAL hat:AtILMLU MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting July 30, 1996 2 p.m. PRESENT Mayor Mary Rhodes Mayor Pro Tem Dr. Jack Best Council Members: Betty Black Melody Cooper Tony Heldenfels Betty Jean Longoria John Longoria Edward Martin Dr. David McNichols City Staff: Acting City Manager Bill Hennings Assistant City Attorney Alison Gallaway City Secretary Armando Chapa Mayor Rhodes called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Rev. E.F. Bennett (retired), following which the Pledge of Allegiance to the flag of the United States was led by Council Member Best. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Rhodes announced that Item 14, Corpus Christi Metropolitan Area travel survey, was being withdrawn from the day's agenda. She then called for approval of the minutes of the regular Council meeting of July 23, 1996, and there being no corrections, she proclaimed them approved as presented. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 2, proposed FY 96-97 budget. Acting City Manager Hennings pointed out that Item 2.a. was a motion to amend the budget prior to second reading, and staff was proposing a motion to amend Item 2.a. to include Exhibit A, which is a list of each change in every fund in the budget to be included in the ordinance. Mr. Hennings said staff was asking the Council to substitute Item 2.a. on the agenda with the motion before them. Mayor Rhodes made a motion to amend the motion amending the budget, by adding Exhibit A to the motion. The Mayor's motion was seconded, and it passed by the following vote: Rhodes, Minutes Regular Council Meeting July 30, 1996 Page 2 Best, Black, Cooper, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Heldenfels voting "No." Mr. Hennings noted that during last week's budget discussion, the staff and Council had addressed concerns raised by the bond rating agencies, including the amount of the closing fund balance and the difference between revenues and expenditures. He said the total amount of revenue for the General Fund was $111,250,839, and he referred to a chart which showed that approximately half of the revenue is generated from property taxes and sales taxes, while the other half comes from Solid Waste Services charges, franchise fees, and miscellaneous revenue sources. He continued that the General Fund appropriation would be $111,568,825, and about half of that is budgeted for the Fire and Police Departments, and the rest is for Solid Waste Services, Park and Recreation, Street Services, and miscellaneous activities. Mr. Hennings said that when the proposed budget was first discussed, the ending fund balance would have been about $300,000, while the amended proposed budget would be almost $2 million, which directly responds to one of the stated concerns of the bond rating agencies. In addition, strides have been made in the last few years to decrease the gap in the amount of expenditures versus revenues. Mr. Hennings said that the Council had asked staff to prepare a financial plan that will be submitted to the bond rating agencies at the time a copy of the final budget is given to the agencies in about one or two months. Mr. Hennings said two other changes were in the accounting for transfers to and from the Self -Insurance Fund, which does not have any net effect on the budget; and the addition of the 3% pay increase for eight months for non-uniform city employees. Council Member Heldenfels asked why the most recent budget amendment had not been submitted to the Council earlier, and Mr. Hennings said staff had prepared an extensive budget memo concerning changes in the General Fund portion that was given to the Council last Friday, but there was not enough time to include the other changes. Council Member McNichols questioned the proposed transfer of funds from the Self - Insurance Fund to other funds. Mr. Hennings explained that two changes were being proposed, one of which was merely a change in the accounting practice. He said instead of reducing the allocations of costs to the various customer funds, staff changed that to keep the allocation at the same level, but then to pay back to the other funds, in essence, a partial refund of the contribution; he said the net effect was the same. He said the city's accounting personnel and the outside auditor agreed that that was the better way to account for those funds. Mr. Hennings went on to say that since the Self -Insurance Fund was established, staff has appropriated reserves to deal with contingencies that might arise without having to come back to the Minutes Regular Council Meeting July 30, 1996 Page 3 Council for appropriations. He said staff focused on the anticipated expenditure level, just as they do in all the other fund budgets, and then adjust the budget to match that expectation, and then the balance shows up in the closing fund balance. If there is an unexpected claim, staff would come back to the Council and ask them to appropriate funds from that available fund balance. Dr. McNichols said he agreed that the non-uniform city employees deserved a pay increase, and staff devised a way to fund that increase in FY 96-97. However, he was concerned about the financial commitment that would have to be made in future budgets, and he questioned whether the city's financial forecast would continue to be gloomy as it had been in the last several years. Dr. McNichols said he would be willing to agree to the pay raise if staff was confident that the tax base will continue to increase in order to fund the salaries at the higher rate. He said if there is any doubt about future funding at that level, they should consider instituting a one-time salary bonus instead. Mr. Hennings pointed out that in the General Fund Statement of Revenues and Expenditures, the cost for the 3% non-uniform pay increase would be $728,706, while there would also be a savings of $496,780 due to departmental service reductions, which partially offsets the pay increase. Mr. Hennings said he is optimistic that an upward economic trend is occurring and the property taxes should continue to reflect that. Mayor Rhodes reiterated that part of the pay increase would be offset by departmental reductions, and Dr. McNichols said those reductions did not constitute cutting waste but, rather, were very real service reductions, the bulk of which occurred in Street Services and Park and Recreation. The Mayor noted that there are 53 unfunded positions in the budget, and the current city employees are having to absorb those responsibilities. She said not compensating employees for their extra effort or to even make up for the cost of living puts the city at risk for more problems. She said Police and Fire employees get raises because they are unionized and the rest of the employees look to the Council to assist them. Council Member Betty Jean Longoria agreed with Dr. McNichols that many citizens' complaints concern the very same departments (Streets and Park and Recreation) where service reductions are being made. However, she said she also shares Mr. Hennings' confidence that the economy will continue to improve. She said she would be willing to grant a permanent pay increase to non-uniform employees. Council Member Martin asked about a proposal staff had made regarding an airport fund transfer. Mr. Hennings replied that it had to do with the way the airlines' contracts are negotiated. He said the airlines' lease payments are based on their need to support a portion of the operating cost of the airport, and staff felt it would be more advantageous to make that transfer at the end of the current fiscal year, rather than at the beginning of the next fiscal year. Minutes Regular Council Meeting July 30, 1996 Page 4 Ms. Bonnie Allin, Director of Aviation, explained that by making the transfer as a one-time action, it leaves an audit trail to show the airlines that the amount is not being charged as an operating expense --it is going from one airport reserve fund to another airport reserve fund. Mr. Martin questioned why that reasoning would affect the timing of the transfer, and Ms. Allin agreed that the transfer could occur as a one-time transaction, rather than as a series of transactions, and it could occur after the beginning of FY 96-97. Mr. Martin said he was concerned because the bond fund reserve --with the inclusion of the airport transfer --would be 82% in FY 95-96, and then it would decrease to 75% in FY 96-97 just because of the timing of that transfer of funds. He asked staff to reconsider that issue. Mr. Martin also said that he had asked at a previous meeting if the current year adjustments had been reviewed by the outside auditor, and staff had responded affirmatively, but that was incorrect. Mr. Hennings apologized for that error. Mr. Martin then asked Mr. Hennings if he was confident about the amount of the transfer of approximately $1.8 million (rather than $1.6 million) from the Sanitary Sewer Bond Fund Interest to the General Obligation Debt Service Fund, and Mr. Hennings said he was. Mr. Martin referred to a memorandum concerning the 53 unfunded positions and an additional reduction in service levels. He noted that those unfunded positions affect a variety of city services, including Latchkey and recreation programs, the museum, the Database Management Team in the department of Planning and Development, and others. Mr. Hennings acknowledged that there were some concerns about how certain departments would be affected, but staff was making a commitment to that level of reductions and there were still some issues that needed to be resolved. Mr. Martin replied that service levels is a policy issue, and he asked staff to present a service plan to the Council for their consideration. Mr. Martin said monies should be set aside for wage increases in the budget, and before the Council determines if it will be a one-time increase, they and the staff should review the city's first quarter revenues to determine if growth has continued. Mayor Rhodes called for comments from the audience. Mr. J.E. O'Brien, 4130 Pompano, criticized the amount of time the Council had spent discussing the budget, which he said was their most important task. He said despite the fact that there had been discussion about reducing services, the proposed budget had increased by $1 million since last week. He also said the budget contained a 4.3% tax increase, and the Council was preparing to grant a tax abatement to a steel company. Mr. O'Brien said the industries use most of the water and cause pollution, and he questioned the water rates that they pay. Minutes Regular Council Meeting July 30, 1996 Page 5 Responding to some of Mr. O'Brien's comments, Mr. Hennings explained that the difference in the amount of the total appropriation in the FY 96-97 budget consists of the changes outlined in Exhibit A. He said the most important change is the accounting change in the self-insurance fund, which does not affect the amount spent. The rest of the difference consists of the net pay increase for the non-uniform employees, and $151,447 for the purchase of additional General Fund equipment. Mr. Phil Rosenstein, a citizen advocate for the Texas Senior Citizens Association, said area senior citizens appreciate the services that are provided to them. He noted that many "winter Texans" also use those services. Mr. Leon Perez, 904 Buford, criticized Qualitech Steel Corporation for its plans to open a facility in Corpus Christi. Mr. Martin made a motion to have the airport transfer take place as originally recommended in FY 96-97; seconded by Mr. Heldenfels, and passed unanimously. Mr. Hennings said he understood that action to also include the reconsideration of the adoption of Ordinance No. 022638. (Notation- This action nullifies Ordinance No. 022638, passed on July 23, 1996.) City Secretary Chapa polled the Council for their votes as follows: 2.a. M96-227 Motion amending prior to second reading, the ordinance adopting the City of Corpus Christi budget for the ensuing fiscal year beginning August 1, 1996; to make certain changes in anticipated revenues and appropriations as set out in the attached and incorporated Exhibit A. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Heldenfels voting "No." 2.b. ORDINANCE NO. 022643 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 second reading, as amended, by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Heldenfels voting "No." Minutes Regular Council Meeting July 30, 1996 Page 6 Mayor Rhodes said that Item 3 concerned the non-uniform pay raise, and she asked if the Council wanted to postpone action on that item. Responding to a question from Mr. Longoria, Mr. Martin said the action the Council was taking sets aside $728,706 in the General Fund to allow for a 3% raise for eight months beginning November 25, 1996. He said how those funds are delivered has a significant impact on future budgets: if optimistic economic projections prove to be true, then the proposal can be implemented as planned. If those projections fall short, he said the Council may want to give an increase on a one-time basis which has no "roll -up" next year. He said this allows the Council more flexibility. Mayor Rhodes said if the majority of the Council agreed with Mr. Martin's recommendation, that would be the action they would take, but she would prefer to approve the 3% raise now. She then asked for a hand vote on the Council members who wished to postpone action on Item 3. Council members Best, Heldenfels, J. Longoria, Martin, and McNichols voting "Aye" to postpone; Rhodes, Black, Cooper, and B. Longoria voting "No." 3. WITHDRAWN for an approximatc 3% gcncral i..e.easc and range adjusg.,cnt€et salary Schcdulcs A and 13 5, 1996, mid 2% eff.,ctiive Feb. nary 3, 1997, eensiste, ith the par adjustments n,quned by Fund ..itl.1.S...iti,,.. of Y..,Lati.,..ary r.,.i.,1 i.f Subseetiei. 707.1, to-elm;fy thatte,.., lif., insuranee f 1 Mice -mid Tire n.a1aget al perse„ncl * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 4, Solid Waste Services funding program, and Item 5, landfill liner improvements. Mr. Tom Utter, Assistant City Manager for Development Services, explained that in July 1995 staff presented a detailed funding program for Solid Waste Services, which would run from FY 95-96 to FY 2002-03. He said staff intends to bring revisions to the Council each year and when Minutes Regular Council Meeting July 30, 1996 Page 7 necessary. Mr. Utter said this plan provides for ongoing operations, gas extractions and closing of the Elliott Landfill, as well as acquisition, design, permitting and construction of the new landfill. Mr. Utter said one of the ways money is being saved in the landfill operation is for the city to construct the cells themselves. He said they had been paying approximately $1.3 million and they will be able to accomplish that for slightly over $1 million. He explained that city crews will be digging and compacting a 2 -inch clay liner, installing all of the gravel and the leachate collection, but they will not be installing the actual plastic film, which will be contracted out. He noted that Item 5.a. was a proposal to award a contract to Trinity Engineering Testing Corporation (TETCO) for quality control testing, which is required by the Texas Natural Resource Conservation Commission (TNRCC). He said the city also needs to purchase sand, gravel and tire chips for the landfill liner (Item 5.b.), and rent equipment to accomplish those tasks (Item 5.c.). Council Member Heldenfels said he did not agree that the city could perform this work for less money than a contractor. Mr. Utter replied that staff was aware that cell construction had previously cost about $1.3 million, and staff is allowing $1,050,000, and that includes all the costs. Responding to Council Member John Longoria, Mr. Utter said the chart illustrating the Solid Waste Services Funding Program (shown as Attachment 1) was adopted by the Council in July 1995, and in November 1995 the staff presented the composting program proposal. In addition, revisions to the program were brought to the Council earlier in the month, and the suggestion had been made that they be adopted as a formal program, as part of the overall budget. Mr. Utter added that Item 5 does not include the contract for the plastic liner, which is estimated to cost $201,500, which will be brought back to the Council for that contract award. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 4. RESOLUTION NO. 022644 Resolution adopting a revised Solid Waste Services funding program through FY 2002-03. The foregoing resolution passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, and Martin voting "Aye"; Heldenfels voting "No"; McNichols absent. 5.a. M96-228 Motion to award a contract not to exceed $71,530 to Trinity Engineering Testing Corporation (TETCO) for Quality Control Testing, Soil & Liner Evaluation Report/Flexible Membrane Minutes Regular Council Meeting July 30, 1996 Page 8 Liner Evaluation Report/13allast Evaluation Report (SLER/FMLER/BER) for the J.C. Elliott Landfill Expansion Sector 6 Liner Improvements. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, and Martin voting "Aye"; Heldenfels voting "No"; McNichols absent. 5.b. M96-229 Motion approving supply agreements with the following firms for sand, gravel and tire chips in accordance with Bid Invitation No. BI -0260-96, based on low bid. The term of the contracts is for six months with an option to extend for up to six additional months subject to the approval of the contractor and the City Manager, or his designee. The material will be used the Solid Waste Services Department in the Section VI Liner Project. Funding is contingent upon approval of the 1996-97 General Fund Budget. Suntide, Inc. Gibson Recycling Corpus Christi. Tx Corpus Christi. Tx Items 1 & 2 Item 3 $212,100.00 $48,555.00 Grand Total - $260,655.00 The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, and Martin voting "Aye"; Heldenfels voting "No"; McNichols absent. 5.c. M96-230 Motion approving the lease of equipment from the following companies based on low bid and only bid in accordance with Bid Invitation No. BI -0243-96. The equipment, including two dozers, soil compactor, water wagon, excavator, motor grader, and a smooth drum roller, will be used by the Solid Waste Services Department for the Sector VI Liner Construction Project. Term of the contracts vary according to the need of each piece of equipment, with the project being completed in approximately five months. The award is contingent upon the approval of the 1996-97 General Fund Budget. Waukesha Pearce Ind. Corpus Christi. Tx Bid Item 1 $25,500.00 Holt Co. Of Texas Corpus Christi. Tx Bid Items 2, 3, & 4 $62,497.50 Minutes Regular Council Meeting July 30, 1996 Page 9 Nueces Power Equipment Corpus Christi. Tx Bid Items 5, 6, 7 $19,617.00 Grant Total - $107,614.50 The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, and Martin voting "Aye"; Heldenfels voting "No"; McNichols absent. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 6, public art project on Corpus Christi Beach. Mr. Malcolm Matthews, Director of Park and Recreation, explained that the Corpus Christi Beach Association has been working with the Municipal Arts Commission (MAC) and some students from Carroll High School on painting a mural on a retaining wall on Timon Boulevard. He said the MAC had met the night before and unanimously voted to approve this project. Mr. Matthews noted that most of the students would be attending college before the end of August and time constraints were involved. He then showed a sketch of the project, which would consist of colorful beach scenes. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 6. M96-231 Motion approving the installation of public art on City property along Timon Boulevard on Corpus Christi Beach. The foregoing motion passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, and Martin voting "Aye"; Best, J. Longoria, and McNichols absent. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 7, industrial district agreement. Mr. Utter emphasized that this proposal was not a tax abatement; rather, it involved approval of an industrial district agreement with the Berry Group Limited and Qualitech Steel. He said that in Fall 1995, the Council authorized renegotiated industrial district contracts, provided that each contract was submitted to the city by December 15, 1995. One of those contracts was regarding an initial location for Qualitech Steel, which subsequently located on a different site: on the south side of the ship channel on property owned by the Berry Group Limited. Minutes Regular Council Meeting July 30, 1996 Page 10 Mr. Utter said Qualitech proposes as its first phase a $61 million project that will employ about 50 people. He said the proposal meets many of the city's criteria, such as expanding and diversifying port tonnage. Mr. Utter explained that under industrial district agreements utilized in Corpus Christi, the city does not provide any services to the industry. For instance, the industry is required to buy water at outside -city -limits rates and are not located within the city limits. In addition, the industry pays monies in lieu of taxes on an escalating basis up to 60% on improvements, but 100% on the land. Mayor Rhodes told the representative from Qualitech Steel they were proud that Qualitech chose to locate in Corpus Christi, and they look forward to the economic boost it will provide. Council Member Heldenfels asked about the amount of water Qualitech will use. Mr. John Bell, an attorney representing the corporation, said Qualitech is planning to modify their process which will result in a net production of over 50 million gallons of water per year. Responding to Council Member Martin, Mr. Utter said the property is located outside the city limits on a piece of property which contained a lapsed industrial district agreement. Mr. Martin said the net effect of this action is that income will be received from that property that is not being received at this time. Council Member Black thanked Qualitech Steel for moving to Corpus Christi. Mayor Rhodes acknowledged the efforts of the Greater Corpus Christi Business Alliance. Mayor Rhodes called for comments from the audience. Mr. J.E. O'Brien asked if Qualitech would be subject to a decreasing block rate for their water bill. Mr. Utter explained that they would not be using water to any amount. Mr. Martin pointed out that if they were to use approximately one million gallons of water, they would fall under the decreasing block rate structure, which is the same as other industries in the city. City Secretary Chapa polled the Council for their votes as follows: 7. FIRST READING ORDINANCE, Authorizing the City Manager to execute an Industrial District Agreement substantially in accordance with Ordinance No. 022360 with Berry Group Limited by Berry Contracting Inc. - General Partner, Landowner, and Qualitech Steel Corporation - Improvements Owner and Lessee and to file the agreement in the official records of Nueces County, Texas. 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." Minutes Regular Council Meeting July 30, 1996 Page 11 * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 8, a public hearing regarding the Enterprise Zone. The Mayor made a motion to amend the ordinance establishing the boundaries of the 1996 Corpus Christi Enterprise Zone by amending the 7th and 8th finding in the Preamble and amending Section 3 to provide for expansion of the zone. She said the 7th and 8th findings would read as follows: "Whereas, the City now desires to nominate a new Enterprise Zone and/or expand its existing Enterprise Zone in accordance with the Act, subject to the approval of the Texas Department of Commerce; and Whereas, in compliance with the Act, on July 30, 1996, the City held a public hearing to consider establishing a Zone;" and amending Section 3 as follows: "Section 3. Pursuant to the Act, the 1996 Zone is hereby nominated as a new or expanded Enterprise Zone, subject to the approval of the Texas Department of Commerce in accordance with the Act." Council Member Best seconded Mayor Rhodes' motion as stated above, and the motion passed unanimously. Council Member Martin asked about the proposed expansion of the Enterprise Zone. Mr. Utter said since it is a complicated process to expand an existing enterprise zone, it was determined that the expansion should be attempted at the same time that the current Enterprise Zone is being renewed. He explained that several companies had expressed interest in the proposed expansion area, which extends down Port Avenue to Ayers Street and incorporates the old Wal-Mart store. He said staff hopes to make an announcement in the next few weeks about a use for that property. Mr. Martin said Enterprise Zone expansions had been accomplished in the past as part of a particular project, and he criticized how this proposed expansion was being handled. Mr. Utter said the city's current Enterprise Zone needs to be renewed; at the same time, a company has met with the staffs of both the city and the Alliance on a confidential basis to discuss that particular location. He said that company has not yet made a formal announcement of their plans, but it would save time and effort to expand the zone while it is being renewed. In response to Council Member McNichols, Mr. Utter said the Enterprise Zone can be expanded up to 20 square miles, and its size is 12.95 square miles. Dr. McNichols commented that Corpus Christi has a "model" Enterprise Zone, and he did not object to its proposed expansion. Dr. McNichols also asked Mr. Utter to explain two of the benefits of the Enterprise Zone. Mr. Utter replied that if a company is approved by both the city and the Texas Department of Commerce, the company can receive up to a $2,000 rebate per new employee on their sales tax generated by the construction of the project. In addition, some of the state franchise fees can be recaptured. He noted that there are approximately 170 enterprise zones in the state, with close to $5 billion in enterprise zone projects, and Corpus Christi has more than $2.5 billion zone projects. Minutes Regular Council Meeting July 30, 1996 Page 12 Mr. Utter added that to qualify as an Enterprise Zone project, 25% of the employees have to be residents of the zone, or they have to be economically disadvantaged persons. Mayor Rhodes said the Corpus Christi Grayhound Racetrack is an example of a successful zone project. Council Member John Longoria questioned the area to be expanded. Mr. Utter said to establish an enterprise zone in a certain area, pervasive poverty has to be demonstrated (unemployment, substandard and vacant buildings, etc.). With the assistance of Ms. Karen Richmond, of Tax Incentive Strategies of Austin, the zone expansion has been designed to incorporate some of the city's most economically disadvantaged census tracts. Mr. Longoria asked if this action needed to be taken at the day's meeting. Mr. Utter said the public hearing needed to be held, but the Council could postpone action if they wished. Mr. Longoria suggested that more information be provided about the use of the expansion area. Mayor Rhodes pointed out that the zone expansion process is a complicated one and that was why staff was including it with the zone renewal. Mr. Hennings said the company had requested confidentiality, but they were proceeding quickly and they hoped to be operating within a few months. Council Member Black asked if the area along Port and Ayers was included in the zone, and Mr. Utter said it was. He added that the company was a large telecommunications firm which had projections to hire 800 to 1,000 employees. Mrs. Black asked if the expansion included the residential areas along Port and Ayers, and Mr. Utter said it did not, and he compared it to the zone extension that had been accomplished for First Data Corporation. A brief discussion ensued. Council Member Best asked if the expansion needed to follow along a street, and Mr. Utter said that was not necessary, but it was the easiest method for expansion; he added that the portion following the street would result in the addition of less than one-sixth of a mile. Mr. Martin asked what the whole expansion totaled, and Mr. Utter said it was about 30 acres. Mr. Martin questioned the use of the word "will" in the sentence in the ordinance which reads, "The City will provide certain tax and other incentives applicable to business in the Enterprise Zone..." Mr. Utter said the Council may want to amend the ordinance to change the word "will" to "shall" in that sentence. Mr. Martin also asked about the possibility of expanding the zone into the neighborhoods in that area so they could qualify as potential employees of zone -designated projects. Mr. Utter said the poverty rate was not as severe in one particular area as it was in the remaining portion of the zone. Mr. Martin asked if the specific projects had to file applications in addition to the city having the area designated, and Mr. Utter said they did. Mayor Rhodes called for comments from the audience. Ms. Tammy Jackson, 2013 Jasmine Court, asked if employment requirements for zone projects were monitored for compliance. She said many people had applied for jobs with different Minutes Regular Council Meeting July 30, 1996 Page 13 companies and had not been hired. Referring to an earlier comment by Mr. Utter that a number of people living in the Leathers housing project had been hired at the racetrack, Ms. Jackson said she knew of only two people from Leathers. Mr. Utter replied that both city staff and the Texas Department of Commerce monitored those employment practices. With regard to the racetrack, he said that Mr. R.C. Allen, the local general partner of the greyhound track, was named D.N. Leathers Man of the Year a few years ago. He said he would provide more information. Council Member Heldenfels made a motion to close the public hearing, seconded by Council Member Black, and passed unanimously. City Secretary Chapa polled the Council for their votes as follows: 8.b. ORDINANCE NO. 022645 Ordinance establishing the boundaries of the 1996 Corpus Christi Enterprise Zone and authorizing the filing of an Enterprise Zone application with the Texas Department of Commerce. An emergency was declared and the foregoing ordinance passed, as amended, by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye"; Martin voting "No." * * * * * * * * * * * * * Mayor Rhodes opened the public hearing on the following zoning case: 9. Case No. 596-1. T.G. Properties: A change of zoning from "A-1" Apartment House District to "I-2" Light Industrial District on John Industrial Subdivision, Lot 3A, located on the west side of Old Brownsville Road, approximately 375 feet north of Bear Lane. Mayor Rhodes said the Planning Commission and staff recommended denial of the "I-2" District, and in lieu thereof, approval of a "B-3" Business District. She asked if the applicant had agreed to the recommendation, and Mr. Utter said they did. No one appeared in opposition to the zoning case. Council Member Best made a motion to close the public hearing, seconded by Council Member Heldenfels, and passed unanimously. Council Member McNichols asked if the residents of the neighboring property (Casa de Manana Apartments) were opposed just to the original rezoning to "I-2" or to the "B-3" as well. Mr. Brandol Harvey, Director of Planning and Development, said he spoke with the manager of the apartments that morning, and it was his understanding that they are opposed to both zonings. Dr. Minutes Regular Council Meeting July 30, 1996 Page 14 McNichols asked why they objected to the "B-3" use, and Mr. Harvey said he did not know if they had any specific objection, but he thought that the apartment management was trying to persuade the applicant to participate in partial payment for a screening fence that was beyond the screening fence that is normally required. City Secretary Chapa polled the Council for their votes as follows: 9. ORDINANCE NO. 022646 Amending the Zoning Ordinance upon application by T. G. Properties, Inc. by changing the Zoning Map in reference to John Industrial Subdivision, Lot 3A, from "A-1" Apartment House District to "B-3" Business District; providing for publication. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye"; Martin absent. * * * * * * * * * * * * * Mayor Rhodes opened the public hearing on the following zoning case: 10. Case No. C796-9. City of Corpus Christi: A change of zoning from an "R-2" Multiple Dwelling District to an "AB" Professional Office District on Southmoreland Subdivision, Block 10, Lots 16, 17, 18 and 19, located on the north side of Watson Street, approximately 150 feet east of Ayers Street. Mayor Rhodes said the Planning Commission and staff recommended approval. No one appeared in opposition to the zoning case. Council Member Heldenfels made a motion to close the public hearing, seconded by Council Member McNichols, and passed unanimously. City Secretary Chapa polled the Council for their votes as follows: ORDINANCE NO 022647 Amending the Zoning Ordinance upon application by City of Corpus Christi, by changing the Zoning Map in reference to Southmoreland Subdivision, Block 10, Lots 16, 17, 18, and 19, from "R-2" Multiple Dwelling District to "AB" Professional Office District; providing for publication; and declaring an emergency. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, and McNichols voting "Aye"; J. Minutes Regular Council Meeting July 30, 1996 Page 15 Longoria and Martin absent. * * * * * * * * * * * * * Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 11 through 22. She noted that Item 14 was being withdrawn, and Item 22 would be withheld for an amendment. Council Members requested that Item 16 be withheld for discussion. City Secretary Chapa polled the Council for their votes and the following were passed: 11. M96-217 Motion approving the purchase of an automated inorganic constituents analyzer from Lachat Instruments, Milwaukee, WL, in accordance with Bid Invitation No. BI -0261-96, based on low bid meeting specifications for a total of $45,246. This instrument will be used in the Water Department Utilities Laboratory to analyze water, wastewater, and storm water samples. This item is included in the approved FY 95-96 Capital Outlay List. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 12. M96-233 Motion approving a supply agreement with Stewart & Stevenson Services, Inc. for general use automotive type filters in accordance with Bid Invitation No. BI -0251-96 based on low bid for an estimated annual expenditure of $38,000. The term of the contract will be twelve months with an option to extend for up to two additional twelve month periods subject to the approval of the supplier and the City Manager or his designee. Funds have been budgeted by Maintenance Services and the Fire Department in FY 95-96 and requested for FY 96-97. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 13. M96-234 Motion to award a contract in the amount of $120,968 to Lanco Utilities for the Holly Road, Phase 2 Street Improvements: Outfall "R" Project. 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 July 30, 1996 Page 16 14. WITHDRAWN M„ t;en aatholiting the City Manage. or his design..e to exec.& an agreement wi .. ..s, Brinek.,rh„ff, Quade &. D„uglas, Inc., in th.. amount of $599,097.22 t., cond,.et a trairel .... . . : :. : ::. . . -- q ... .. -. 15. M96-235 Motion authorizing the City Manager to execute the Contract for Engineering Services for the Solid Waste Services: Compost Facility Project with Russell-Veteto Engineering, Inc. for a fee not to exceed $36,700. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 17.a. M96-237 Motion approving the reimbursement application submitted by B.J. Norrell, Owner and developer of Country Club Estates Unit 31, Block 1, Lots 48-50, for the installation of 565 linear feet of an off-site 8 -inch PVC water distribution main. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 17.b. ORDINANCE NO. 022649 Ordinance appropriating the amount of $2,204.69 from the Water Distribution Mains Trust Fund No. 143-000-246.96-000 to pay B. J. Norrell developer reimbursement request. 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." 18. RESOLUTION NO. 022642 Resolution supporting the development of Interstate Highway systems to connect Corpus Christi with other major market areas and to international trade. The foregoing resolution passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." Minutes Regular Council Meeting July 30, 1996 Page 17 19. ORDINANCE NO. 022650 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 second reading by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 20. ORDINANCE NO. 022651 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 second reading by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 21. ORDINANCE NO. 022652 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 45mph to 40mph between a point 500 feet south of Wooldridge Road to Saratoga Boulevard. The foregoing ordinance passed on second reading by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; McNichols voting "No." * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 16, Consolidated Annual Action Plan. Responding to Council Member McNichols, Mr. Utter said that this year the Community Development Block Grant (CDBG) program received 97.3% of the funding received last year; the Emergency Shelter Grant (ESG) program only received 67% of last year's funding, which has impacted local agencies which assist homeless persons; and the HOME program received 100.03% of last year's funding. Council Member Black asked about the criteria used in the demolition program. Mr. Utter said funds are available both from the city's General Fund as well as the CDBG program (CDBG Minutes Regular Council Meeting July 30, 1996 Page 18 funds are used in CDBG-eligible areas). Buildings targeted for demolition are usually those which the city has cited as substandard and where the property owner has either given the city written authorization to demolish the building, or where the Building Standards Board has directed that it be tom down. He added that if the owner is not a low-income person, and CDBG funds are used to demolish the building, then the city files a lien on the property and the CDBG funds are replaced once the city recaptures some or all of the lien. Mr. Utter said staff would provide more information. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 16.a. M96-236 Motion authorizing the City Manager to execute all documents necessary to accept and implement the FY 96 Consolidated Annual Action Plan for Community Planning and Development Programs that includes the Community Development Block Grant, Emergency Shelter Grant, and Home Investment Partnership Programs The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 16.b. ORDINANCE NO. 022648 Ordinance authorizing the appropriation of $8,313,000 for Community Planning and Development Program projects/activities that includes 1) $6,585,000 for FY 96 Community Development Block Grant (CDBG) projects; 2) $134,000 for FY 96 Emergency Shelter Grants (ESG) activities; and, 3)$1,594,000 for FY 96 Home Investment Partnerships (HOME) Program to the Federal/State Grant Fund No. 162 for projects/activities approved by the City Council on May 21, 1996. 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, Thermal Energy Storage Project. She made a motion to amend as follows: "Motion authorizing the City Manager to execute Change No. 4 with Malek Inc. in the amount of $47,509 for the Bayfront Arts and Science Park Thermal Energy, Phase 1, Contract #2." Mayor Rhodes called for comments from the audience, and there were none. Minutes Regular Council Meeting July 30, 1996 Page 19 Responding to Council Member Martin, Mr. R.H. Shackelford, Director of Engineering Services, confirmed that there were certain deadlines that needed to be met on this contract. He said the project had met Central Power & Light's performance requirements and the city has received the first two rebates. The day's proposal concerned the last rebate of 25% when the shift of electrical demand from daytime to nighttime must be demonstrated before the end of September. Mayor Rhodes called for a voice vote on the motion to amend, and it passed. City Secretary Chapa polled the Council for their votes on Item 22 as follows: 22. M96-238 Motion authorizing the City Manager to execute Change No. 4 with Malek Inc. in the amount of $47,509 for the Bayfront Arts and Science Park Thermal Energy, Phase 1, Contract #2. The foregoing motion passed, as amended, by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." * * * * * * * * * * * * * Mayor Rhodes called for the City Manager's report. Mr. Hennings stated that there would not be a Council meeting on August 6, 1996; the August 13th Council meeting will focus on water issues, including a recommendation to implement the remaining provisions of Condition II of the Drought Contingency Plan, as well as to begin preparing for Condition III. Mr. Hennings also referred to a letter he had sent to Mr. Dan Pearson, Executive Director of the TNRCC, in which he noted that the city's drought contingency planning had been based on the drought of record, and there is concem that this drought exceeds the drought of record. In the letter, Mr. Hennings asked the TNRCC for assistance in reviewing the city's drought plan. Mr. Hennings said there will be a report from the Regional Water Supply Task Force concerning planning for the Lake Texana pipeline. He said the TNRCC has scheduled action on the pipeline application on September 4, 1996, and he encouraged Mayor Rhodes and other Council members to attend that meeting. The Mayor said she would attend. Mr. Hennings also reported that the city will begin the process of adopting the new tax rate, which requires a notice scheduling a public hearing. Mayor Rhodes asked about the TNRCC meeting concerning the flexible attainment agreement, and Mr. Hennings explained that the TNRCC commissioners and EPA officials met in Corpus Christi last week to formally approve that significant agreement. * * * * * * * * * * * * * Minutes Regular Council Meeting July 30, 1996 Page 20 Mayor Rhodes called for Council concerns and reports. Council Member Heldenfels said he wanted to be sure that the city is receiving the proper amount of credit in the water release schedule, and he said many people had expressed concern about their swimming pools. Mr. Hennings said staff would prepare recommendations for swimming pool owners. Mr. Heldenfels also requested more information about the status of a certain civil lawsuit. Council Member Martin suggested that any action on the water issue to be taken during the August 13 meeting be done in two readings instead of one reading. He emphasized that information and education is an important part of this whole process. Council Member Best said he had attended a conference in Odessa last weekend, and one of the speakers had discussed the issue of reverse osmosis with effluent. He noted that some Texas cities were utilizing that technology. Dr. Best requested more information about that issue. Mr. Hennings said staff has been meeting with industries to discuss the idea of using wastewater effluent in their industrial processes, and he will also provide a full report about credit for effluent discharge into the bay. Council Member Black said some real estate agents had questioned the lead paint testing that is conducted on some homes. Mr. Utter explained that in order for a family with children 6 years old or younger to qualify for the down payment assistance program, the house has to be tested for lead-based paint, which is a very cumbersome process. He said staff would provide a report. Council Member Cooper thanked people for their get -well wishes as she recovered from surgery. She noted that she had recently traveled to Europe where she visited several of Corpus Christi's Sister Cities, and she thanked her hosts for their hospitality. Mrs. Cooper also thanked Mr. Steven Nawojczyk for the address he gave on problems facing young people. Mayor Rhodes called for petitions from the audience. Mr. Ken Johnson, 1042 Harrison, said during the last year he has been working to draw attention to the problems that local youth face. He said people are aware of the spiraling youth crime that has been occurring, but the underlying issues that cause such crime are not being addressed, including high drop-out rates and gang involvement. He said more adult involvement was needed, and he invited the Council to attend a national satellite television conference on August 9, 1996 from noon until 3:30 p.m., sponsored by the Department of Justice. Responding to Mr. Martin, Mr. Johnson said there had been 40 drive-by shootings in 1994 and 460 in 1995. There being no further business to come before the Council, Mayor Rhodes declared the Council meeting adjourned at 4:20 p.m. on July 30, 1996. * * * * * * * * * * * * *