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HomeMy WebLinkAboutMinutes City Council - 09/10/1996I 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 September 10, 1996, which were approved by the City Council on September 24, 1996. WITNESSETH MY HAND AND SEAL, this 24th day of September, 1996 Armando Chapa City Secretary SEAL 0•0 tutu MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting September 10, 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 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 Father Jose Gutierrez, Sacred Heart Church, following which the Pledge of Allegiance to the flag of the United States was led by Council Member Cooper. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Rhodes called for approval of the minutes of the regular Council meeting of August 27, 1996, and there being no corrections, she proclaimed them approved as presented. She then announced that three items were being pulled from the day's agenda: Item 6, consideration of an appeal by Mrs. Lionel Goodstein; Item 19, Retired and Senior Volunteer Program grant renewal; and the appointment of the members of the Corpus Christi Minority Business Opportunity Steering Committee. * * * * * * * * * * * * * Mayor Rhodes introduced Mr. Stan Terry, with the Texas Rehabilitation Association (TRA), who in turn introduced Ms. Nancy Dryer, 1996 TRA Conference Chairperson. Ms. Dryer presented the 1996 Employer of the Year award to the City of Corpus Christi for its efforts in recruiting, hiring, promoting and retaining persons with disabilities. * * * * * * * * * * * * * Mayor Rhodes referred to the Board and Committee appointments on the day's agenda, and Minutes Regular Council Meeting September 10, 1996 Page 2 the following appointments were made: Municipal Arts Commission Lynda Jones (Reappointed) Chuck Anastos (Reappointed) Stewart Neely (Reappointed) Raymond Gignac Rodrigo Benavides Sister City Steering Committee Sam Polk (Reappointed) Johnnie Norman (Reappointed) Adrian Dansby (Reappointed) John Marez (Reappointed) Carole Hardy Pablo Garcia Lucy Reta Gary Hansen Transportation Advisory Committee Israel Ybarra Water/Shore Advisory Committee Bill McDowell Mercedes Salinas Senior Community Services Advisory Committee Alicia Charo Margaret Ramage Mayor Rhodes opened discussion on Item 3, expediting the water pipeline project. Acting City Manager Hennings reported that the recent rains had caused the lake levels to rise to 28.2% of capacity from 25.5% about three weeks ago, which equates to about two months' extension of the life expectancy of the water supply. Mr. Carl Crull, Assistant City Manager of Public Works and Utilities, said the entire pipeline project is targeted for completion in February 1998. He explained that some of the critical elements are the design, permitting, right-of-way acquisition, and legal services associated with the issuance of the bonds. He referred to a time frame of those elements, saying that it is estimated that about $4.5 million for the engineering work would be needed, along with about $300,000 in legal services. He said those actions are in preparation for awarding some construction contracts possibly in December. Mr. Crull explained that city staff had prepared a contract between the city, the Port of Corpus Christi Authority and the Nueces River Authority (NRA), in which the Port would be responsible for hiring the consulting engineering firms to prepare the professional services contracts associated with the design and right-of-way acquisition. In addition, the NRA would proceed to award the professional services contracts associated with the legal services, and the city would reimburse the Port for expenditures up to $4.5 million and the NRA for expenditures up to $300,000. Minutes Regular Council Meeting September 10, 1996 Page 3 Mr. Crull said staff recommended that the funds be advanced from the Choke Canyon Reserve Fund. Mr. Hennings said that while the plan is for the NRA to eventually issue bonds to pay for the project, the Council needed to determine how much work should be done before the bonds are issued, which would be in November at the earliest. He said the Choke Canyon Reserve Account was built over the years from payments by customers of the water system. The intent was to "flatten out" future payments for Choke Canyon debt so that water bills would not have to be increased over time along with increases in the debt. Mr. Hennings went on to say that the annual Choke Canyon debt payment is $3,245,000 from the budget, and the balance comes from the Choke Canyon Reserve Account. He said the account is available to be used for other water projects that would benefit the users of the water supply system. He said the Nueces River Authority had adopted a resolution authorizing all of the expenses to be reimbursed from the bonds after they are sold. This proposal is to advance the funding for the interim expenditures from the Choke Canyon Reserve Account, and if for some reason the project did not mature and the bonds were not sold, the Port Authority and the NRA were asking for some assurance that the city would pay their expenses. The Acting City Manager then briefly described two alternatives to the staff's recommendation: to delay funding until the bonds are sold, which would mean a delay in the completion of the pipeline and the delivery of the water; or to wait until the interbasin transfer permit is issued by the Texas Natural Resource Conservation Commission (TNRCC), which is expected on September 18, 1996, resulting in a two-week delay in the ultimate completion of the project. Mr. Jerry Kane, Co -Chairman of the Regional Water Supply Task Force, said the task force consists of regional leaders who were charged with finding and delivering additional water sources to the area. He said the task force concurred with the staffs recommendation to expedite the pipeline project. Mr. Kane also commended the City Council's foresight in acquiring water rights at a time when most people thought those water rights would be unnecessary. He added that when discussing the amount of water remaining in the reservoir system, it must be emphasized that the system cannot be drained down to zero. Council Member Heldenfels said he had four concerns with the proposal. The first pertained to Article IV, Section 3 of the City Charter, which he said prohibited the use of utility funds for anything other than "utility required debt service." He said there was no debt so there cannot be a debt service. He said he was also concerned about violating Article II, Sec. 11, regarding removal of a City Council member, and he questioned why the city was not issuing the bonds as contemplated by the contract with the Lavaca-Navidad River Authority (LNRA). Mr. Heldenfels also said that the LNRA contract requires that the city own the pipeline. Responding to Mr. Heldenfels' concerns, City Attorney Bray said that the City Charter does Minutes Regular Council Meeting September 10, 1996 Page 4 permit the use of any utility revenues for a proper expenditure of the water utility, of which the acquisition of new water was a proper expenditure. Mr. Heldenfels reiterated his position that there was no debt. Mr. Bray replied that the charter provision to which Mr. Heldenfels referred was a transfer provision which states that as a general rule, money cannot be transferred from the utility for another purpose; an exception is for utility -based debt service. He added that that provision does not address the utility system paying for utility system costs directly out of system revenues. Mr. Heldenfels said he disagreed with Mr. Bray. Mr. Hennings said the proposal involved a use of utility system funds in the utility system for a utility system project, and it is not a debt but rather payment for services. He added that the Nueces River Authority would be issuing the bonds since it is the political subdivision which includes all of the service area of the water system; in addition, it constructed the Choke Canyon project. He said which entity will own the pipeline has yet to be determined and there are several options to consider. Mr. Heldenfels said he had seen a proposal recommending that the NRA own the pipeline until it is paid for, at which time the city would own it. Mr. Hennings replied that that is one of the options. Mr. Heldenfels said it was his opinion that if the City of Corpus Christi did not own the pipeline, it would violate the LNRA contract. Mr. Bray replied that the LNRA contract states that the LNRA will own the pumping facility at Lake Texana, and the city will own the rest of the pipeline; however, that would not prevent the city from using any other means to construct the pipeline through an agreement with a separate entity. Mr. Heldenfels said he disagreed. Council Member John Longoria said that while the majority of the Council seemed committed to the concept of building the pipeline, the question remained who will pay for the project. He said that needed to be debated first before any other action is taken. Mr. Hennings acknowledged that it was a judgment call whether to proceed with the project or wait until the details about the financing were determined. He said the problem was that the update of the cost -of -service study was not yet completed and would not be until the Council's next meeting. Responding to a question from Mr. Longoria, Mr. Hennings said the city is paying for the water in Lake Texana as well as making option payments on the Garwood water rights. He said before the end of the year the Council will need to decide whether to exercise the option to purchase the Garwood water rights. Mr. Longoria said the most important decision to be made at that time was how much the rate payers will have to pay for the pipeline. In reply to another question from Mr. Longoria, Mr. Crull said the construction contracts were not scheduled to be awarded until December 1996 or January 1997, but there is much lead time involved in the permitting, design, and right-of-way acquisition. Mr. Hennings said he had also asked how much money would be spent in the next two weeks, and was told it would be about $350,000. Mr. Longoria said that was more reasonable and would allow Minutes Regular Council Meeting September 10, 1996 Page 5 the Council to review the rate schedule during that time. Mr. Hennings pointed out that by the time the Council was presented the information on the rate schedule and considered the ordinance on two readings, a month will have elapsed. He said staff was prepared at this Council meeting to present all of the rate information they had short of the results from the cost -of -service update, or that could wait until the next meeting. Mr. Kane said it was the task force's intent to ensure that an individual resident in Corpus Christi does not pay more for his 1,000 gallons of raw water than the industrial or commercial customers. He pointed out that the city would be encumbering the $4 8 million, but it will be phased in over time. Responding to a question from Mr. Longoria, Mr. Bray said the opinion is that the 6% cap applies to the service part of the rate rather than to the commodity cost of water. Mr. Longoria asked what would be entailed if that opinion was challenged, and Mr. Bray said any kind of legal process has the possibility of delaying the project. He said if that were to occur, it is the city's intention to bring those issues to the court as quickly as possible to resolve them. He added that bond counsel was satisfied that the city's plan is strictly lawful and any challenge would be without merit. Mr. Longoria said the sooner the rate issue is resolved, the sooner the project will proceed. Mr. Bray replied that the expenditures that the Council was being asked to approve at this meeting are going to have to be made no matter how the pipeline is ultimately financed. Mr. Longoria reiterated that he felt the whole financing plan should be approved fust before initiating the project, and to take any other action results in negative reaction from the public. Council Member McNichols, Co -Chairman of the Regional Water Supply Task Force, said that at no point since the task force was formed has there been any decision to blindly forge ahead without regard to costs and many other factors. He said the task force was charged to find additional water under the possibility that the area could run out of water within 12 months, and even with the additional time afforded by the recent rains, several delays have already occurred. Dr. McNichols pointed out that there are other surrounding cities who rely on this water system and depleting the water levels would affect their intakes in the lake. He emphasized the importance of not delaying the project. Mayor Rhodes said that while she understood Mr. Longoria's concerns, it was important to focus on what was before the Council at that meeting, which was the preliminary work that needed to be done if the Council was truly committed to building the pipeline. Mr. Longoria said the decision on the rate structure made the whole project defendable, whereas the day's actions did not. The Mayor replied that if the pipeline is not quite completed and the area ends up running out of water, a delay of one to three weeks would be catastrophic. Council Member Martin asked if these costs are protected if the city ends up having to be the Minutes Regular Council Meeting September 10, 1996 Page 6 bond issuing agency. Mr. Hennings replied that the costs are protected, and Mr. Martin said the city is in essence adopting a form of a bond resolution. He then asked why the utility fund reserve was not used. Mr. Hennings replied that he did not think there was basically any difference between using the Choke Canyon reserve account and the unappropriated balance in the utility fund. He added that since this was a contingency expenditure, it could be argued that it would be better spent out of the utility fund unappropriated balance, since it will be reimbursed. Mr. Martin said that if the Choke Canyon reserve account is used, it is absolutely essential that it be reimbursed, because if it is not the 6% cap will prevent the city from being able to pay for the Choke Canyon debt. Mr. Martin said in addition, if it is used, interest should be charged. Responding to a question from Mr. Martin, Mr. Hennings said the total project includes the Garwood portion. The expenditures that are planned to be incurred beginning now through November, which is what the $4.8 million is based on, would only include the construction for the pipeline to Lake Texana. He said the timing for permitting the Garwood water was delayed, which is the reason for proceeding with the Lake Texana portion at this time. Mr. Martin asked if there was a point at which this project would no longer be an emergency, such as a certain reservoir system level of perhaps 50% of capacity. He noted that the consultants' original projections were that the pipeline would not have to be built until 2008, and now those projections have changed. Mr. Hennings said he did not think the 2008 date would ever be the projection again due to this severe drought, but the urgency of the project would change. Council Member Betty Jean Longoria asked if staff still recommended utilizing the Choke Canyon reserve funds after hearing some of the Council members' concerns, and Mr. Hennings replied that he thought it was a sound recommendation, while pointing out that there are alternatives. Mayor Rhodes called for comments from the audience. San Patricio County Judge Josephine Miller said the county she represents is the second largest user of the water system. She said county residents recognize their responsibility in helping to pay for the water, and she urged the Council members to not rely on hopes of rain but to take the necessary action to provide water to the area. Mr. Jesse Hix, 2622 Segrest, said the proposal was ambiguously written, and he questioned the expertise of the Port of Corpus Christi Authority and the Nueces River Authority. Mr. Mike Carrell, Chairman of the Greater Corpus Christi Business Alliance, distributed a copy of a resolution passed by the Alliance in support of the pipeline and the current proposal. Mr. Gene Urban said it is the Alliance's opinion that if jobs are lost during Condition III it Minutes Regular Council Meeting September 10, 1996 Page 7 will have a big impact on the community, and building the pipeline is a positive sign of economic stability. Mr. Lewis Lovelace, 1549 Casa Grande, said he supported a pipeline into the Gulf of Mexico in order to convert seawater into fresh water, and he said the Lake Texana pipeline should be abandoned and the LNRA contract sold to someone else. He gave reasons why the city should build a multi -effect distillation cogeneration plant. Mr. Norman Renfro, spoke on behalf of Mr. John Honholt, vice-president and general manager of Valero, who could not attend the meeting. Mr. Renfro said that Valero supports the Council's commitment to securing an additional water supply for the region, and the company commends them for their foresight in acquiring the Lake Texana water rights. He said it was time to move quickly into Condition III, to move forward on the pipeline project, and to curtail water releases from the reservoir. He also described Valero's plans to conserve and recycle water. Mr. Tom Curlee, Chairman of the San Patricio County Economic Development Corporation, which consists of 28 board members, referred to a resolution passed August 29, 1996 by that organization in which they state their support of the water transfer pipeline from Lake Texana. Mr. Frank Newchurch, President of the Board of Trade, said the City of Corpus Christi, as regional water manager, has developed a plan to accelerate construction of the pipeline, and it is extremely important to the Board of Trade's future that they support that plan. He said industry is prepared to pay their fair share because long-term water supply is fundamental to all. Mr. Leon Perez, 904 Buford, said he did not understand how the city could use money that it already owes for Choke Canyon to pay for the Lake Texana pipeline. Mr. Phil Rosenstein said this same scenario was played out a few years ago when voters defeated a proposed sales tax increase for additional water supplies. He said the money in the Choke Canyon Reserve Account belonged to the ratepayers, and if that funding is used it will have to be replaced. He added that the Council had said the voters would be able to determine if they supported the pipeline and its funding. Mr. John Hardy, a resident of northwest Corpus Christi, said he was disturbed by discussion of using utility funds to begin financing this project when it was not viewed as a utility during the appeal process. He said the public's intelligence is being tested every week regarding this issue. Mr. Tom Alvarado said he sees the need for the pipeline, quoting the adage, "Most people do not plan to fail, but they fail to plan." He urged the Council to continue working on the plan. Mr. J.E. O'Brien, 4130 Pompano, said he was opposed to the proposal, saying it was unwise, Minutes Regular Council Meeting September 10, 1996 Page 8 dangerous, and unauthorized by the City Charter. He referred to Article IV, Sec. 3, of the charter regarding transfers of funds, as well as the minutes from the March 24, 1987 Council meeting when the Choke Canyon debt service fund was established. He questioned what the consequences would be if the bonds are not sold, and he said waiting a few weeks on the project would not have a large impact. Mr. Bob Ferguson, President of Texas A&M University -Corpus Christi, said he was a registered professional engineer and a member of the Regional Water Supply Task Force. He briefly addressed the issues of cost, timing and risk, and he urged the Council not to take any more time than was needed to complete the pipeline. Mr. Keith Arnold, Chief Executive Officer of the Greater Corpus Christi Business Alliance and a member of the task force, agreed that this was an urgent issue to the community's three principal economic generators: port/channel industries, tourism industry, and the military. He said many companies and individuals have expressed hesitancy concerning development in Corpus Christi because of the area's uncertain water supply. Mr. Neal Trolinger rhetorically asked the Council how many of them were familiar with the various state and federal laws regarding misappropriation of public funds. Mr. Jimmie Till said that in 1968 he was a member of the Coastal Bend Regional Planning Commission, and he read an excerpt of that organization's 1968 long-range plan for water resources. It said that studies by the Bureau of Reclamation and the Texas Water Development Board indicated that an additional water supply would be needed shortly after 1990. Mr. Bert Williams, a Corpus Christi resident and Alliance member, said he fully supported the pipeline and urged the Council to proceed in an expeditious manner. Mr. Greg Escamilla, a concerned citizen, said that business interests were trying to intimidate the Council into approving the pipeline. Mr. Johnny Moncado said he was grateful to the Mayor and Council for their efforts to secure the area's water supply. Mayor Rhodes thanked all those who took the time to attend the Council meeting, and she pointed out that "business" is not some isolated entity --it consists of the people who are employing citizens. She said it was the Council's responsibility to be concerned about companies hesitating to move to Corpus Christi because of the water situation. She said it was overwhelming to think what would happen if this region, composed of 500,000 people, ran out of water. The Mayor said this project needs to proceed as quickly as possible. Minutes Regular Council Meeting September 10, 1996 Page 9 Mr. Hennings proposed the following change in Items 3.a. and 3.b.: to use the unappropriated fund balance of the Combined Utilities Fund as the source of funding. Mayor Rhodes made a motion to amend the ordinance as recommended by staff. Responding to Dr. McNichols, Mr. Hennings said that using the unappropriated fund balance of the Combined Utilities Fund would not affect future funding for infrastructure needs. Dr. McNichols then seconded the Mayor's motion. She called for a voice vote on the motion to amend, and it passed (Best, Heldenfels, and J. Longoria voting "No"). City Secretary Chapa polled the Council for their votes as follows: 3.a. ORDINANCE NO. 022679 Ordinance appropriating $4,800,000 from the unappropriated fund balance of the Combined Utilities System Fund to use as an advance on preliminary costs of the Lake Texana Pipeline Project, expected to be reimbursed from bonds issued by the Nueces River Authority. An emergency was declared and the foregoing ordinance passed, as amended, by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, and McNichols voting "Aye"; Heldenfels, J. Longoria, and Martin voting "No." 3.b. M96-269 Motion authorizing the City Manager to execute the "Contract For Payment of Necessary Preliminary Costs of Water Pipeline Project to be Reimbursed from Bond Proceeds" between the City of Corpus Christi, the Nueces River Authority, and the Port of Corpus Christi Authority of Nueces County, Texas, relating to the pipeline to transport water from Lake Texana to the Corpus Christi area, as negotiated with the Authority and the Port, and authorizing the advance of $4,800,000 from the unappropriated fund balance of the Combined Utilities System Fund for the purposes recited in said contract, to be reimbursed from proceeds of bonds to be issued by the Authority. The foregoing motion passed, as amended, by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, and McNichols voting "Aye"; Heldenfels, J. Longoria, and Martin voting "No." Mr. Hennings said staff was ready to proceed with the discussion of the water rate structure, but some Council members had asked that that discussion be postponed. Dr. McNichols said that discussion was still needed on the water conservation plan, and he said the cost -of -service update was not yet completed. Mayor Rhodes said the water rate discussion Minutes Regular Council Meeting September 10, 1996 Page 10 would be postponed until the September 24, 1996 Council meeting. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 4, amendments to the Drought Contingency Plan. Mr. Hennings noted that on August 27, 1996 the Council passed an ordinance on first reading amending the Drought Contingency Plan as recommended by the Water Conservation Advisory Committee to change the trigger point for implementing Condition III, of which the primary factor is water rationing. He said the ordinance as currently written sets 11% of the total system capacity as the trigger point, while the advisory committee is recommending raising that to 18%. Mr. Hennings also noted that on August 27, 1996 the Mayor received a letter from Mr. Barry McBee, TNRCC Chairman, which suggested that the Council set Condition III and implement the first phase of it, which would include: curtailing the use of water for scenic and recreational ponds and lakes; prohibiting the use of water to put new agricultural land into production; and providing water to restaurant customers only upon request. Commissioner McBee said that water rationing and other elements could be implemented at a later date as the second phase of Condition III. If those actions were taken, Commissioner McBee said the TNRCC would consider suspending any further requirement for pass-throughs to the estuary. As a result, the City Council adopted a motion asking the Water Conservation Advisory Committee to reconsider its recommendation in light of Commissioner McBee's letter. The committee met last week and staff provided the following recommendation (Alternative A): that Condition III be implemented beginning on November 1, unless lake levels increase to 30%; and that the conservation measures --except water rationing --would be implemented on November 1. Also, consistent with the committee's prior recommendation, water rationing would be implemented when the water in storage dropped to 18% of the total capacity. Mr. Hennings said the committee reviewed staff's recommendation, and after lengthy discussion, adopted a motion, on a vote of 13-12, recommending a two-phase implementation (Alternative B): at 23%, Condition III would go into effect, and the measures listed in Commissioner McBee's letter would be implemented; and at 18%, the remaining measures would be implemented, including water rationing. The Acting City Manager then described the most aggressive proposals (Alternative C): implementing Condition III in its entirety, with the provision that the water -rationing portion would be voluntary until the water in storage dropped to 18% of capacity. He said the advantage of that alternative is that staff could go through the process of developing allocations, notifying customers, and allowing them time to adjust while there is no surcharge imposed. Even more restrictive would be to have a reduced surcharge of $5 per 1,000 gallons for consumption exceeding 4,000 gallons Minutes Regular Council Meeting September 10, 1996 Page 11 above the allocation. Mr. Hennings went on to say that the Council discussed in Condition III the advisability of relying on the rationing and the target allocations for customers, as well as not having prohibitions on particular uses of water, one of which concerned swimming pools. Consequently, Mr. Hennings said he was revising the staff recommendation to say that they would not implement the swimming pool restriction until the levels reached 18%, which would be consistent with Commissioner McBee's letter. In addition, Mr. Hennings said the surcharges for water rationing need to be updated to offset the effects of inflation; businesses which use water for processing would reduce their consumption by 10% immediately and 5% within three months; other businesses, such as offices, would continue to have the 25% target reduction; and the swimming pool prohibition would only apply to outdoor pools, which suffer the greater evaporation losses. Mayor Rhodes announced that a bill that was introduced into the House of Representatives was passed on September 10, 1996. It would allow the city's payments for the Nueces River Project (which includes the Choke Canyon Reservoir) to be deferred interest-free for five years, allowing the city to use the money for additional water sources. Council Member Martin asked if the other revisions discussed by Mr. Hennings applied to all three alternatives, and Mr. Hennings said they would be effective for all three upon 18% of system capacity. After some discussion, Mr. Martin pointed out that the ordinance currently provides for Condition III implementation --and the resulting water rationing --at 11% of system capacity, and the advisory committee's recommendation to raise it to 18% should indicate to the TNRCC the city's commitment to save its water resources. He said some people have expressed concern about using the date certain of November 1 to implement Condition III, since they have the perception that more stringent restrictions take effect. Mr. Martin said he replies to their concerns by saying that nothing different occurs until the Council declares the point at which rationing takes effect. Mr. Hennings said the advisory committee member whose motion was approved said the figure of 23% was arrived at based on a forecast of where the lake levels would be on November 1. A brief discussion ensued. Council Member McNichols said Mr. Martin's concerns were debated at length by the advisory committee members. He agreed with Mr. Martin's assessment that the Council agreed not to restrict individuals' use of their allotments; however, he still had questions about the swimming pool restrictions, which he said should be discussed in more depth. Council Member Best said citizens are very frustrated about many aspects of the water restrictions, but none more so than the state -mandated water releases into the estuary. He said he was opposed to a date certain for implementing Condition III; instead, the city should remain in Minutes Regular Council Meeting September 10, 1996 Page 12 Condition II and educate people by informing them how much water they would be allocated under Condition III, and indicate on their monthly bills how much they may have exceeded their allocation and what would be the resulting penalty. Dr. Best said he was upset two weeks ago to learn that during the Council meeting, the city was releasing water but the Council was not informed about it by staff. He asked on what basis the decision to release water is made, and Mr. Hennings said he makes that decision as required by the state, taking several factors into consideration. Dr. Best then asked what would be the consequences if the Council were to prohibit the City Manager from making any future water releases. Dr. McNichols replied to Dr. Best that the city would not receive the interbasin transfer permit from the TNRCC as well as the pipeline, and the city would be in violation of federal law, resulting in thousands of dollars in fines. Mayor Rhodes said it was very easy to take the simplistic approach to this issue, adding that she knows better than anyone that the water releases are extremely unpopular. She noted that many people believe that the city has a choice whether or not to release the water, which is not true. The Mayor said she understood Dr. Best's and many citizens' frustration, but she explained that when the decision was made to build Choke Canyon dam, the city would not have been given the permit to do so unless it agreed to release a certain amount of water. The Mayor continued that the city has to proceed as a good steward not just of its water resources but of the law as well, and there are certain ways to deal with this issue. She said the TNRCC did not create the water -release mandate but they are charged with enforcing it, and she felt they are assisting the city with all of its issues before that agency, including the landfill permit and the water transfer permit. The Mayor added that once the city moved into Condition III, it would no longer have to make water releases if the lake levels continued to drop, which would allow everyone to concentrate on the more important issue of protecting the area's long-term water supply. Dr. Best replied that the staff of the TNRCC are not elected officials, and the TNRCC commissioners are appointed by the govemor of Texas. Dr. Best reiterated his frustration with the issue, and said that the water was for people, not for protecting the shrimp and fish in the bay. Dr. McNichols said that when the Agreed Order was originally implemented some years ago, it was agreed to under duress by city officials, and the city was required to release a very large amount of water. Immediately a task force was appointed by the Mayor to try to renegotiate that release requirement, which was finally accomplished. Now another change is needed, but it must be accomplished within the confines of the current laws. Dr. McNichols said what is needed is to conserve as much water as possible now, since there have been years that the reservoir system has fallen by as much as 25% in one year. Mr. Jim Naismith, Co -Chairman of the Water Conservation Advisory Committee, said that Minutes Regular Council Meeting September 10, 1996 Page 13 even though there are some communication difficulties between the TNRCC, the city and the advisory committee, the ultimate problem is the drought. He reported that the majority of the committee members felt that a certain trigger level to begin implementing Condition III could be easily understood by the public. Mr. Martin asked if there would be a problem with implementing at any point three specific provisions of Condition III (prohibiting the use of potable water for recreational ponds and lakes and for putting new agricultural land into production, and serving water in restaurants only upon request), with the rest of the provisions to be implemented at 18% of system capacity. Mr. Jim Parker, a landscape contractor and member of the advisory committee, replied that the general public does not make a distinction between certain provisions of Condition III --their impression is that Condition III constitutes water rationing. He said he made the motion, which was ultimately passed by the committee, to compromise and begin implementing Condition III at 23% (which at the time would have occurred around November 1), with water rationing to follow at 18%. Mr. Parker said there have even been misconceptions about the provisions of Condition II, which affects water -sensitive industries such as Mr. Parker's. Mr. Martin pointed out that when the lake levels go over 30% of capacity, the city cannot institute Condition III. And since the levels are currently at 28.2%, it would only take two good rains to send it over 30%, which he said would result in the city not having to implement Condition III any time this Fall. He added that under the renegotiated Agreed Order, if the reservoirs are full, the city will end up having to release more water than it did under the original order. A brief discussion ensued. Mayor Rhodes said that while a date certain for Condition III was not included in Commissioner McBee's letter, the importance of a date certain provision had been expressed to her personally by the TNRCC. She added that it was essential for people to begin understanding the seriousness of the drought situation facing this region. Mr. Kane pointed out that the committee's recommendation was made with a one -vote margin, which illustrates the intense debate surrounding this issue. He said the important thing was to present a legitimate conservation plan to the TNRCC, which has already altered its requirements for fresh water releases and which may continue to do so if they feel the city is intent on conserving its water. Mr. Kane added that the committee did not have the opportunity to consider Alternative C, which he felt was a good plan since it instituted voluntary water rationing. He argued that 1 8% of total capacity was too low to begin rationing water. Mr. Heldenfels emphasized the importance of taking some action immediately in order to increase the city's conservation efforts. Minutes Regular Council Meeting September 10, 1996 Page 14 Council Member Black asked if Alternative C could be implemented in different phases. Mayor Rhodes said the important aspect was the development of a conservation plan, and Mr. Hennings pointed out that staff had prepared a recommended plan (Alternative A), which was contained in the Council's agenda materials beginning on page 67. Mrs. Black said she would favor a date certain as well as the three provisions outlined in Commissioner McBee's letter. Mr. Hennings said those provisions were included under Alternative A, with the change being that the restrictions related to swimming pools and expansion of commercial nurseries would not be implemented until the 18% level is reached. Dr. McNichols asked which specific provisions would be implemented under Alternative C. Mr. Hennings replied that Alternative C would implement the following provisions on November 1: water would not be served in restaurants except upon request; water would not be used to put new agricultural land into production; water would not be used for scenic fountains, etc.; water would not be used to expand commercial nurseries; water would not be used for outdoor swimming pools; and water rationing would begin on a voluntary basis. Dr. McNichols then made a motion to adopt Alternative C as described by Mr. Hennings, with the exception of excluding the prohibition against outdoor pools until further information can be gathered. He said he would also amend Alternative C to exclude the phrase, "unless lake levels increase to 30%." Mayor Rhodes seconded Dr. McNichols' motion. Mr. Martin said that motion would result in full implementation of Condition III on November 1 no matter what the level of the lakes is and whether the city needs to or not. Mayor Rhodes said that under Alternative C, water rationing would be voluntary, to which Mr. Martin disagreed. Dr. McNichols said he did not mind deleting the aspect of the reduced surcharges and initially making water rationing voluntary, but he felt it was important to send the message that the city was serious about conserving water, which would result in the cessation of the water releases. Council Member Cooper said she felt there should be an upper limit on the percentage of the lake levels that would cease the stringent requirements of Condition III if the area does receive torrential rains. She said the level did not have to be 30% but perhaps it could be 35% or 40%, whatever the advisory committee would recommend. She asked if customers could be informed if they exceed their allotments without monetarily penalizing them. Dr. McNichols said it was important to implement Condition III, while whatever upper limit is established can be negotiated at a later time. He then restated his motion as follows: that Condition III be implemented on November 1, which would include the provisions outlined by Mr. Hennings (water would not be served in restaurants except upon request; water would not be used to put new agricultural land into production; water would not be used for scenic fountains, etc.; and water would not be used to expand commercial nurseries); and the outdoor swimming pool restrictions would be excluded for the time being. In addition, water rationing would be Minutes Regular Council Meeting September 10, 1996 Page 15 implemented in two phases: on November 1, water rationing would be voluntary with no surcharge penalty; then at 18% of capacity, water rationing would become mandatory. Mayor Rhodes said she did not think anyone would voluntarily begin rationing their water use with no disincentive in place; otherwise, they would already be doing that. Dr. McNichols replied that he thought many people already were self -rationing their water. Mayor Rhodes said another possibility would be to raise the percentage at which mandatory rationing would take effect, such as 23%, and at that point surcharges would take effect; until that point, citizens could be encouraged to "practice" water rationing. Dr. McNichols pointed out that many people are not aware of their current consumption and that option could allow them a few months to develop a pattern of reduced usage before they may be penalized. The Mayor asked if the city's billing system could be programmed to indicate to customers how much they would be exceeding their target allocations, and Mr. Hennings said it could. Mrs. Cooper said she wished to amend Dr. McNichols motion that Condition III would not be implemented if lake levels increased to 38%. Dr. McNichols wondered what advantage that action would have, and Mr. Kane replied that that may create a new threshold for being able to argue with the TNRCC that the city should be exempted from having to make freshwater releases. He said he would also encourage some level of voluntary conservation since waiting until 18% of system capacity is very destabilizing. Mr. Kane pointed out that the city of San Antonio has a "voluntary" rationing system, whereby it is up to each customer whether he does or does not fall within the allocated usage; the thing that is not voluntary is what each customer will be charged. He added that some incentive to conserve water should be imposed on all customers --industrial, residential and commercial. Mayor Rhodes said she felt that the plan should include either one or the other --either the surcharge needed to be included, or the trigger point for mandatory rationing needed to be higher than 18%. She said that surcharges would be fairer as it would allow people time to adapt to rationing. Responding to Mr. Martin, Mr. Hennings said there was a difference in the penalties for exceeding water allotments for commercial customers under 20,000 gallons per month and commercial customers over 20,000 gallons. He said the surcharges are very similar to residential surcharges for the smaller commercial users, but for the larger commercial users, the surcharge is one times the block rate for the first increment and so on. Mr. Martin referred to one of the proposed ordinances (Alternative C) pertaining to surcharges, and said there was no reason to penalize residential customers more than commercial customers. Mr. Hennings said the commercial schedule could be adjusted to be the same as the residential schedule. In reply to Mrs. Black, Mr. Hennings said apartment buildings which do not charge their Minutes Regular Council Meeting September 10, 1996 Page 16 residents for water usage will have to implement a water conservation program that will help them meet their allocation, or they will have to pay the surcharge. Dr. McNichols questioned some of the proposed surcharges, and Mr. Hennings pointed out that those applied to mandatory rationing --the reduced surcharge under Alternative C would just be $5.00 per thousand gallons for consumption exceeding 4,000 gallons above the allocation. Mrs. Cooper said she did not agree with the concept of the reduced surcharge under voluntary rationing. Mayor Rhodes pointed out that the only difference is that the city is not going to cut off people's water if they use more than 4,000 gallons over their allocation --they can pay for the extra water if they wish. Mayor Rhodes took a "straw" poll on Dr. McNichols motion as previously stated, and there was not a consensus of support. Mr. Martin pointed out that the advisory committee unanimously agreed to recommend mandatory rationing at 18%, while staff recommended that unless lake levels increase to 30%, the non -rationing provisions of Condition III would be implemented on November 1. He said that staff then developed Alternative C, which is more restrictive and was not presented to the advisory committee for their consideration. He said at some point the city needs to adopt mandatory rationing, and prior to that, all the city needs to do is implement those provisions of Condition III which allow for cessation of the water releases. Mr. Martin emphasized that the city's plan needed to be kept simple because the issue has become increasingly confused. Mr. Martin said he would support implementing Condition III immediately with the three provisions Commissioner McBee suggested, with the remaining provisions (including mandatory rationing) implemented at a certain percentage of the lake levels. He said the only percentage for mandatory rationing which has so far been agreed upon is 18%. Mayor Rhodes said she would not support rationing at 18%. Dr. McNichols said he had initially recommended Alternative C because the other two alternatives had not been acceptable to all those involved. He agreed with Mr. Martin that Alternative C is somewhat complicated, although it has been used successfully in other cities. Mr. Martin said the difference between Alternatives A and B is whether to implement Condition III on November 1 or at 23%, and the Council should be focusing on resolving that difference rather than considering Alternative C. Mrs. Cooper said she thought the issue could be resolved if Alternative C were adopted with the following changes: add 38% as the upper limit; inform customers of their "aspirational goal" for voluntary rationing with an accompanying public relations/educational campaign; and retain 18% as the trigger for mandatory rationing. Minutes Regular Council Meeting September 10, 1996 Page 17 Mayor Rhodes said she still objected to the trigger of 18%, particularly with no true incentive to conserve water. Mr. Kane said that during the advisory committee meeting, there was only one motion that was made, and that was to establish 23% as the first implementation of Condition III, with 18% for mandatory rationing; that motion passed 13-12 so there was not any unanimous adoption of the 18% figure. Mr. Kane added that he had spoken with Mr. Parker (another member of the committee), who said he supported the elements of Condition III, particularly since citizens will be able to use their water allotments as they see fit. He reiterated that it is important for Corpus Christi to act responsibly as stewards of the water resources. Mr. Martin said he thought that at the advisory committee's prior meeting, the committee had overwhelmingly voted to recommend implementing Condition III at 18%, and then the City Council sent that recommendation back to the committee; Mr. Kane said he was not present at that meeting. Mr. Martin then asked Mr. Hennings if the advisory committee had on two occasions made the recommendation of 18% for mandatory rationing, and Mr. Hennings said it had. Dr. McNichols made a motion to accept the staff recommendation that Condition III would go into effect on November 1 unless the lake levels increase to 30%, and the conservation measures (except water rationing) would be implemented. Before he completed the rest of his motion, Dr. McNichols asked if the Council wished to change the 18% figure to 20%. Dr. Best said he objected and would instead support Alternative B, which was the advisory committee's recommendation. Mayor Rhodes said she felt that 20% was still too low. Dr. McNichols completed his motion to say that water rationing would be implemented at 23% of system capacity. The Mayor called for a "straw poll" of the Council, and there was a consensus. Deviating momentarily from the discussion, Mayor Rhodes announced that Item 7 on the day's agenda, consideration of an appeal by Martin and Pam Anguiano, would be pulled at the request of the applicant. She stated that the case would be heard during the Council's September 24, 1996 meeting. Returning to the water discussion, Mr. Heldenfels said he would second Dr. McNichols' motion. The Mayor called for a voice vote, and the motion passed (Best voting "No"). Mrs. Cooper made a motion that an upper level of 38% (rather than 30% as approved) be established, but her motion died for lack of a second. Mr. Hennings said the proposed ordinance under Alternative A was contained in the agenda materials beginning on page 70, with the exception that the figure of 18% throughout the ordinance Minutes Regular Council Meeting September 10, 1996 Page 18 would be amended to 23%. In addition, there was a clerical error on page 75 which was corrected. Following a brief discussion, Mr. Hennings said the ordinance would also be amended to make the surcharge for commercial customers the same as for residential customers (up to 20,000 gallons per month); and to eliminate the restriction on use of water for swimming pools until more information is obtained. Mr. Hennings said he was unsure if the prohibition against expanding commercial nurseries was retained, and Dr. McNichols said he considered that prohibition to be included when he made his motion. Mr. Martin referred to the penalties for commercial customers who are charged under the declining block rate structure, and he said he understood the rationale for quantity discounts, but not on the penalty basis. A brief discussion ensued. Mr. Hennings said staff could bring back an alternative to the Council. Mayor Rhodes said the Council would continue with the agenda as staff prepared the ordinance for final approval by the Council later in the meeting. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 5, recovery well system permit. Mayor Rhodes called for comments from the audience, and there were none. Council Member Martin asked why this item was being considered on only one reading. Mr. R.H. Shackelford, Director of Engineering Services, said the reason was to allow for the expedient installation of the recovery system. City Secretary Chapa polled the Council for their votes as follows: 5. ORDINANCE NO. 022681 Ordinance authorizing the City Manager or his designee to execute a Recovery Well System Agreement with Amerada Hess Corporation to install six recovery wells and associated piping within City right-of-way (ROW) along Gibson Street and Retama Street in the Oak Park Subdivision area; subject to certain conditions and Amerada Hess Corporation paying a $4,466 permit fee. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; McNichols absent. Minutes Regular Council Meeting September 10, 1996 Page 19 6. POSTPONED dLli1J1V111eg1.ilillg & aelition of a building at 1508 N. Broadway. 7. POSTPONED - • Ul.N131V1111411.1111115 d.,,nolitiv„ of a building at 645 M.,hawk. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 8, adoption of the 1996 tax rate and approval of the tax levy. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 8.a. ORDINANCE NO. 022682 Ordinance prescribing the taxes to be levied, assessed, and collected by the City of Corpus Christi, Texas for the year 1996 and for each succeeding year thereafter until otherwise provided. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, and Martin voting "Aye"; Heldenfels voting "No"; McNichols absent. 8.b. M96-271 Motion approving the 1996 Tax Levy of $42,073,811 based upon the adopted tax rate of $.623726 per $100 valuation in accordance with Section 26.09 (e) of the Texas Property Code. 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 called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 9 through 29, and Council Members requested that Minutes Regular Council Meeting September 10, 1996 Page 20 Items 9, 10, 12, 15, 18, 21 and 24 be withheld for discussion. The Mayor noted that Item 19 was being pulled. City Secretary Chapa polled the Council for their votes and the following were passed: 11. M96-274 Motion approving supply agreements for stationery supplies in accordance with Bid Invitation No. BI -0276-96 with the following companies based on low bids, to provide for multiple progressive awards. The terms of the agreements will be two years, subject to annual appropriation, with an option to extend for up to two additional years subject to the approval of the supplier and the City Manager or his designee. The estimated two year contract total is $390,493.64. Leslie Alan Company Corporate Express Corpus Christi. Texas Corpus Christi. Texas (Primary Vendor) (Secondary Vendor) GRAND TOTAL: $390,493.64 for two years ($195,246.82 annually) The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 13. M96-276 Motion approving a supply agreement with Terra Distribution, Taft, Texas for approximately 250 tons of Anhydrous Ammonia in accordance with BI -0249-96 based on low bid for an estimated annual expenditure of $62,500. The term of the agreement is 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. This chemical will be used in the Stevens Water Treatment Plant. Funds are budgeted for FY 96/97 by the Water Department. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 14. M96-277 Motion approving a supply agreement for $125,000 for part-time security workers for the Convention Center facilities in accordance with Bid Invitation No. BI -0264-96 with Eddie Garza Security and Investigations, Corpus Christi, Texas, based on the low bid meeting specifications. The term of the contract will 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 Minutes Regular Council Meeting September 10, 1996 Page 21 City Manager or his designee. Funds are budgeted for FY 96-97 by the Convention Center and Coliseum. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 16. M96-279 Motion authorizing acquisition of Parcel No.1 located on the north (water) side of Ocean Drive at the Alameda Street intersection for $48,795 in connection with the Spur 3 Street Improvements Project. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 17. M96-280 Motion awarding a contract in the amount of $103,308 to Quality Machine and Equipment Company for the ON Stevens River Station: 1996-97 Pump Maintenance Program, Phase 1. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 19.a. PULLED th., Retired a..d Senior Volu..t.,e. P.eg.a..r. 19.b. PULLED 19.c. PULLED Ceaht3 fluid. Minutes Regular Council Meeting September 10, 1996 Page 22 20.a. M96-281 Motion authorizing the City Manager or his designee to accept a renewal grant and execute a agreement in the amount of $305,800 with the National Council on the Aging, Inc. (NCOA) for the continuation of the Senior Employment Project. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 20.b. ORDINANCE NO. 022683 Ordinance appropriating $305,800 from the National Council on the Aging, Inc. (NCOA) for the Senior Employment Project to the No. 162 State/Federal Grant fund. 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." 22.a. M96-282 Motion authorizing the City Manager or his designee to execute an agreement with South Padre Island Investment Company for installation of a 6' x 4' x 150' drainage box across Greenwood Drive. The agreement requires South Padre Island Investment Company to pay the City $54,332.40. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 22.b. ORDINANCE NO. 022686 Ordinance authorizing a $66,431.41 increase in the City's project escrow account with the Texas Department of Transportation to pay for storm drainage relocation costs and drainage box installation costs, all relating to improvements in the vicinity of Holly Road and Greenwood Drive in Corpus Christi. 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 September 10, 1996 Page 23 22.c. ORDINANCE NO. 022687 Ordinance appropriating $54,332.40 to the storm sewer bond fund 295-601-608.42. 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. M96-283 Motion authorizing the City Manager or his designee to sign the Hatch Commercial Site Drainage Improvements Agreement with Central Power & Light Company (CPL). The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 23.b. ORDINANCE NO. 022688 Ordinance appropriating CPL's $197,014 payment from the Storm Sewer Bond Fund No. 295 to construct the Hatch Commercial Site Drainage Improvements. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, 11 Longoria, J. Longoria, Martin, and McNichols voting "Aye." 23.c. M96-284 Motion awarding a contract in the amount of $164,526.65 to CREIC Construction for the Hatch Commercial Site Drainage Project. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 25. ORDINANCE NO. 022690 Ordinance enacting a moratorium for 275 days in the `B-1" Neighborhood Business Zoning District for any restaurant use exceeding a 4,500 gross square feet building area commencing September 10, 1996; providing for severance; 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, Martin, and McNichols Minutes Regular Council Meeting September 10, 1996 Page 24 voting "Aye." 26. ORDINANCE NO. 022691 Ordinance amending the Code of Ordinances, Chapter 36, Parks, Recreation, Cultural and Leisure Time Activities, by deleting Article III, (36-80 through 36-98) in its entirety to eliminate duplicate sections. 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." 27.a. FIRST READING ORDINANCE Granting to Caprock Fiber Network, Ltd., a non-exclusive one-year franchise to construct, maintain, and operate in designated portions of specified public rights-of-way telecommunications facilities for the purpose of providing services within the city and future additions thereto. 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." 27.b. FIRST READING ORDINANCE Granting to Caprock Fiber Network, Ltd., a non-exclusive seven-year franchise to construct, maintain, and operate in designated portions of specified public rights-of-way telecommunications facilities for the purpose of providing services within the city and future additions thereto. 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." 28. M96-285 Motion approving the site plan for alley closure between Lot 1, Block 2a and Lot 7 - 11, Block 1, Ocean View Addition. 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 September 10, 1996 Page 25 29. ORDINANCE NO. 022692 Amending the Code of Ordinances, City of Corpus Christi, Chapters 13 & 23 to allow use of grey water for irrigation and watering foundations, while prohibiting the improper use of grey water; providing for penalties; providing for severance; and providing for publication. 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." ************* Mayor Rhodes opened discussion of Item 9, purchase of police sedans. Council Member McNichols asked if the police sedans, which cost $20,181 each, contained the complete police packages. Mr. Crull replied that they contained everything except light bars, decals and radios; they specifically include the heavy engines, heavy transmissions, heavy-duty brakes, etc. He added that this was not a large increase in price over last year's cost. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 9. M96-272 Motion approving the purchase of thirty-five Police Package Sedans, in accordance with Bid Invitation No. BI -0280-96, from Padre Ford, Corpus Christi, based on low bid of $706,335. The sedans are for the Police Department and are budgeted in the 1996-97 Capital Outlay Budget as replacement units. 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 10, supply agreement for armored courier service. Responding to Council Member John Longoria, Mr. F.D. Glenn, Purchasing Agent, said the city's estimated tabulation was prepared by the city case management personnel, taking into consideration other things they would have to buy if they were to perform the service, such as trucks. 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 September 10, 1996 Page 26 10. M96-273 Motion approving a supply agreement for armored courier service with Horacio Ortiz Independent Security Consultants, Inc., Corpus Christi, Texas, in accordance with Bid Invitation No. BI -0235-96 based on low bid for an annual total of $36,900. The term of the contract shall be for twelve months, with an option to extend for up to two additional twelve month periods, subject to the approval of the supplier and the City Manager or his designee. Funds are budgeted for FY 96-97 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." * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 12, equipment for the Texas State Aquarium. Dr. McNichols asked if staff had investigated the availability of parts and service for the Mitsubishi forklift truck, and Mr. Glenn replied that obtaining parts would not be a problem. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 12. M96-275 Motion approving the purchase of the following equipment for the Texas State Aquarium: Bid Invitation No. BI -0262-96 3/4 Ton Pickup Truck Padre Ford Corpus Christi $17,037.00 Only Bid Bid Invitation No. 81-0263-96 4,000 Ib Capacity Fork Lift Truck Mustang Industrial Equipment Corpus Christi $16,306.00 Low Bid The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Heldenfels voting "No." * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 15, visitor/traffic improvements at Bayfront Arts and Sciences Park. Dr. McNichols asked why the improvements could not be made with funds from the Minutes Regular Council Meeting September 10, 1996 Page 27 Regional Transportation Authority (RTA). He said he thought funds raised by the Friends of the Museum should be used for the museum itself and not for transportation needs. Mr. Shackelford explained that the RTA appropriated $150,000 for the street improvements; additive alternate No. 1 of the proposal (which is the additional amount of money being provided by the Friends of the Museum) involves the construction of a sidewalk from the RTA drop-off site to the front of the museum, and also some curb work. Dr. McNichols asked if the sidewalk met regulations for persons with disabilities, and Mr. Shackelford said it was an enhanced sidewalk. Mr. Martin pointed out that when traveling down Chaparral Street the first major visual attraction is a dumpster located by the Harbor Playhouse, and he asked staff to remove it. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 15.a. M96-278 Motion awarding a contract in the amount of $129,241.30 to Haas -Anderson for construction of Visitor/Traffic Improvements at Bayfront Arts and Science Park. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 15.b. FIRST READING ORDINANCE Amending the Code of Ordinances, Chapter 53 -Traffic, Section 53-250, Schedule I - One- way streets and alleys, by establishing a one-way southbound traffic pattern on Mesquite Street between Chaparral Street and Hirsch Street, in conjunction with the Visitor/Traffic Improvements at Bayfront Arts and Science Park project. 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 18, professional services contract with Mr. Robert T. Bruner. Responding to Dr. McNichols, Mr. Utter described changes that were made to the proposal. He noted that the proposed motion does not "direct" the City Manager to execute the contract, it merely "authorizes" him to do so. He said the total remuneration allowable under the contract has been decreased by about $15,000, and the hourly consultant fee has been dropped by $15 per hour Minutes Regular Council Meeting September 10, 1996 Page 28 (from $90 per hour to $75 per hour). Mr. Utter said a rough estimate of the number of hours to be worked per week is 20 to 25, which will increase immediately prior to the permit hearing. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 18. FAILED TO PASS this permitting of th„ a,,,' 1a14E11, indud:,,g com.d:..atim. of engi..eei:..g aad lcgai cervi es, liaison with othcr affcctcd partics, providing expert tcstimony, and acting an city The foregoing motion failed to pass by the following vote: Rhodes, Cooper, B. Longoria, and Martin voting "Aye"; Best, Black, Heldenfels, J. Longoria and McNichols voting "No." Addressing Council Member Best, Mayor Rhodes pointed out that he had voted in favor of this proposal when the Council considered it on July 23, 1996. Dr. Best replied that now he would rather let the future City Manager conduct the negotiations and then bring it back to the Council a third time. Council Member Martin asked if Mr. Utter pointed out that the wording of the motion had changed from "directing" to "authorizing"; Mr. Utter said he had. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 21, street lighting improvements. Council Member John Longoria asked if this was the first time monies were being spent from a grant that had been received for the 78415 zip code area. Mr. Hennings said that the Workforce Development Corporation has received a grant for $9,375 for this street lighting project. Ms. Valerie Shurbet, Chairperson for the 78415 Community Youth Development Program, explained that this program had received a $900,000 grant, and the Workforce Development Corporation is the organization's fiscal agency. She said this proposal is the first expenditure in the first phase of the safety component of the grant. She added that additional lighting improvements will be made in a few months in the amount of $30,000 to $36,000. Ms. Shurbet said both statistics and common sense show that a well -lit area is a deterrent to crime. Minutes Regular Council Meeting September 10, 1996 Page 29 Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 21.a. ORDINANCE NO. 022684 Ordinance authorizing the City Manager or his designee, to execute an agreement with the Workforce Development Corporation to reimburse the City in the amount of $9,375 for jointly approved street lighting improvements in the "78415" zip code area to support the prevention and reduction of juvenile crime. 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. 21.b. ORDINANCE NO. 022685 Ordinance appropriating $9,375 from the Workforce Development Corporation for Municipal Street Lighting Improvements in the "78415" Zip Code area in the No. 102 General Fund - Street Lighting Activity; amending Ordinance No. 022643 which adopted the FY 96-97 Budget, by adding $9,375 to the No. 102 General Fund - Street Lighting Activity. 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. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 24, consolidated government legislation. Council Member Best said he supported the proposed legislation because it requires that an election be called by the County Commissioners, or a petition of 10% of the registered voters in the county in the last governor's election. He said the citizens should decide if they wish to pursue consolidation or not. Mayor Rhodes replied that the proposed legislation has some serious implications and much more discussion needs to be held. She said it would be better if the city had some input into the decision. Dr. Best said the voters would decide, adding that consolidation is the wave of the future. He said there are other counties and cities such as Corpus Christi and Nueces County where the vast majority of county residents live in one large city, which results in duplication of services. Minutes Regular Council Meeting September 10, 1996 Page 30 Council Member Heldenfels said he thought the legislation should be more thoroughly prepared, adding that he agreed with Mayor Rhodes that neither Corpus Christi nor Nueces County should be used as a testing area on the consolidation issue. Mayor Rhodes called for comments from the audience. Mrs. Dorothy Spann, 502 Del Mar, said there were no supporting documents in the Council's agenda packet on this item. Mayor Rhodes explained that there would be much more public debate on this issue, but immediate action needed to be taken before a hearing was held. City Secretary Chapa polled the Council for their votes as follows: 24. RESOLUTION NO. 022689 Resolution endorsing consolidated functions with Nueces County where it benefits the taxpayers with more economical and responsive services; finding that general consolidation of government entities should be tested first in very Targe cities; and requesting that Nueces County be excluded from any general consolidated government proposals in the Legislature. The foregoing resolution passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Best voting "No." * * * * * * * * * * * ** Mayor Rhodes resumed the discussion of Item 4, Condition III measures. Mr. Hennings noted that staff had completed the changes in the proposed ordinance, with one exception. Mayor Rhodes made a motion to replace the figure of 18% on page 6 of the ordinance with 23%; seconded by Council Member Heldenfels, and passed unanimously. Council Member Martin questioned Section 2(C)(2), "A mandatory limit of normal water use by customers without use penalty, in amounts as determined by the City Manager in accordance with guidelines established by the City Council." Mr. Hennings replied that the limits for residential customers are contained in the ordinance, as are the guidelines. Mr. Martin said it appears that there is no correlation between raising the penalties and raising the size of the allocation, and Mr. Hennings said that was correct. Mr. Martin asked if Mr. Hennings knew what the "voluntary" limits were in San Antonio. Mr. Hennings replied that they were about 17,000 gallons per month for a one -family dwelling; over that amount there is a surcharge that doubles the rate. Minutes Regular Council Meeting September 10, 1996 Page 31 Responding to Council Member Best, Mr. Hennings said that if, on November 1, the lake levels are at 31%, the Condition II provisions would remain in effect, such as lawn watering every two weeks and odd/even watering for plants and gardens. He added that the ordinance states that if the lake levels go above 30% by November 1, Condition III would not be implemented. He said the question would then be when to implement Condition III, which would require further Council action. He added that staffs recommendation was designed to satisfy Commissioner McBee's letter from the TNRCC. Council Member Black asked about Section 2(C)(1), and Mr. Hennings explained that if there is another source of water available to a customer, then the customer must use the alternate source. Mrs. Black asked if that situation would apply for a person who built a house on a lot containing a well. Mr. Hennings said it would apply if the well was producing potable water that met all the standards for municipal use, but it was not very likely that that would occur. Council Member McNichols said he thought there was consensus among the Council to retain the provision prohibiting the expansion of commercial nurseries with potable water. Mr. Hennings said he thought the Council had wanted it removed because it was not part of Commissioner McBee's letter. A hand vote was taken and it was determined that the ordinance would read as presented, meaning that the expansion of commercial nurseries would not be prohibited. Dr. McNichols also referred to a previous Council discussion concerning the phasing in of industrial allocations. He asked if those amounts should be altered since the figure for mandatory water conservation had been raised to 23%. Mr. Hennings suggested that since changes to those amounts had not been discussed with industry representatives, the industrial restrictions could be phased in over six months (rather than over three months as originally proposed): 5% when mandatory allocations begin, 5% more in three months, and another 5% in six months. Mr. Martin pointed out that other commercial customers will be required to reduce consumption by 25% as soon as the lake levels drop to 23% of capacity, while the industries are allowed to phase-in their water restrictions. He asked staff's prediction of the earliest date they expect the lakes to reach the 23% mark with no additional rain and continued evaporation. Mr. Hennings replied probably December. Mr. Martin said he did not support 23% because he thought it was too high, and he said everyone should be treated equally. Mayor Rhodes said the Council could approve the 23% at this time, and receive further input, at which time the ordinance could be amended. Dr. McNichols said he could understand Mr. Martin's concerns, noting that a new set of problems is created with the 23% figure. He asked if the majority of the Council supported 23% or wished to drop it to 20%. Mayor Rhodes said she thought 20% was too low. Minutes Regular Council Meeting September 10, 1996 Page 32 City Secretary Chapa polled the Council for their votes as follows: 4.a. M96-270 Motion to amend prior to second reading the ordinance amending the Water Conservation and Drought Contingency Plan by adopting a substitute ordinance. The foregoing motion passed by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye"; Best and Martin voting "No." (Note: This motion was later amended to reduce the trigger point from 23% to 20% --see page 34.) 4.b. (Note: No ordinance number was assigned to this item since it was reconsidered later in the meeting --see page 34.) Amending the Code of Ordinances, Chapter 55, Utilities, Article XII, Water Conservation, Sections 55-151, 55-152, 55-153, 55-154, 55-155, and 55-156, Water Conservation and Drought Contingency Plan regarding the terms of Condition II and III; providing for severance; providing for penalties; and providing for publication. The foregoing ordinance passed on second reading, as amended, by the following vote: Rhodes, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and McNichols voting "Aye"; Best and Martin voting "No." Some members of the audience asked why there had been no public comment before the vote was taken, and Mayor Rhodes apologized, saying she thought there had been. She then invited them to come forward to address the Council. Mr. Jim Parker, a member of the Water Conservation Advisory Committee, said the committee recommended the 18% trigger point on two occasions, and then the Council adopted the 23% trigger instead. He implored the Council to take the committee's advice. Ms. Sally Gill, of Gill's Nursery, said the community is actively involved in conserving water, and she requested that the Council follow the committee's recommendation of 18%. Mayor Rhodes said she understood Ms. Gill's and Mr. Parker's frustration, adding that the advisory committee is composed of people who will be affected the most by the water restrictions, but the Council has a responsibility to see the whole picture. She said there will be severe consequences if the pipeline is not completed by the time the area runs out of water. Mr. Ted Turner, of Turner's Gardenland, pointed out that the expansion of commercial nurseries was a non -issue, since no business would attempt to do that when faced with a 25% reduction in water consumption. He referred to a flier sent by city staff to customers, which Minutes Regular Council Meeting September 10, 1996 Page 33 indicated that in Condition III no water would be used for new planting or landscaping. He said the nursery industry was trying to make Corpus Christi beautiful, and the urban forest needed to be considered. He said there was a chance that the area would receive enough rain so that Condition III would not have to be implemented. Mr. Herman Johnson said he was a member of the advisory committee but he does not represent the landscape industry, but rather commercial businesses. He said he was shocked when the Council did not adopt the committee's recommendation. He said that although his business was small, they had quite a few people on their payroll. He said the difference between 18% and 23% may be enough to force him to close his business. Mr. Ray Johnson asked why the Council had waited until the very end before this issue was decided. He said he may be forced to lay off employees who had been with his company for 22 years. He said the Council and the city had an obligation to provide water to its customers. Mayor Rhodes commented that when the Council began investigating additional sources of water six years ago, they were severely criticized for "jumping the gun," and now they are being criticized for not having taken action sooner. Mr. Mark Smith, a member of the advisory committee, said he favored Alternative C, and asked the Council to consider an implementation point somewhere between 18% and 23%. Ms. Dorothy Spann, 502 Del Mar, said that the main concern among the public is to stop the water releases, and to do that Condition III must be implemented. She said people cannot "practice" doing without, and she added that she favored the 23% trigger point. Mr. Martin said this was the first time the Council had ever discussed the possibility of initiating mandatory allocations at 23%, which was contrary to the committee's recommendation. He added that staff had made two different recommendations using the 18% amount. He said while the figure may not have an effect during the Fall, it becomes critical as spring approaches. He questioned what the 5% difference in the two numbers may mean to people's businesses. Mayor Rhodes replied that the whole issue was a judgment call on the part of the Council. She said the area is in a crisis situation and it is important to build the pipeline as quickly as possible so the water will not be depleted. Mrs. Cooper made a motion to reconsider ordinance 4.b. Mr. Bray said it would require a vote of two-thirds of the Council to reconsider it. Secretary Chapa polled the Council, and the motion to reconsider passed by the following vote: Best, Black, Cooper, B. Longoria, Martin, and McNichols voting "Aye"; Rhodes and Heldenfels voting "No"; J. Longoria absent. Minutes Regular Council Meeting September 10, 1996 Page 34 Mrs. Cooper then made a motion to amend the ordinance to change the trigger point in the ordinance from 23% to 20%; seconded by Mr. Martin. Dr. Best reiterated that the advisory committee had recommended that 23% be the trigger for partial implementation of Condition III and 18% for the remaining provisions, including water rationing. He said he would vote against the proposal again because he felt it should be the same as the committee's recommendation. City Secretary Chapa polled the Council for their votes as follows, including the proposed amendment by Mrs. Cooper: 4.b. ORDINANCE NO. 022680 Amending the Code of Ordinances, Chapter 55, Utilities, Article XII, Water Conservation, Sections 55-151, 55-152, 55-153, 55-154, 55-155, and 55-156, Water Conservation and Drought Contingency Plan regarding the terms of Condition II and III; providing for severance; providing for penalties; and providing for publication. The foregoing ordinance passed on second reading, as amended, by the following vote: Black, Cooper, Heldenfels, B. Longoria, Martin, and McNichols voting "Aye"; Rhodes and Best voting "No"; J. Longoria absent. * * * * * * * * * * * * * Mayor Rhodes announced the closed session, pursuant to Texas Government Code Sections 551.071 and 551.074, regarding new City Manager selection, with possible action thereafter in open session. The Council went into closed session. The Council returned from closed session. * * * * * * * * * * * * * Mayor Rhodes called for the City Manager's report. Mr. Hennings reported that next week's Council meeting would be a special closed session meeting in order for the Council members to interview City Manager candidates. He said that the TNRCC hearing for the Lake Texana permit would be held in Austin on September 18, 1996. Mr. Hennings pointed out that it was important for this area to be well represented at that hearing. Mr. Hennings said items scheduled for the September 24, 1996 Council meeting included Minutes Regular Council Meeting September 10, 1996 Page 35 the new federal courthouse, budget amendments, and structure of the water rates. Also, he said the remaining provisions of Condition II, including lawn watering every two weeks, would become effective on September 16, 1996. Mr. Hennings announced that September 11, 1996 was an ozone action day and he encouraged car-pooling and other pollution -reduction efforts. Mayor Pro Tem Best said that Mayor Rhodes had to leave the meeting; he then called for Council concerns and reports. Council Member Martin said that the mailing that was sent out concerning water issues needed to be corrected. He said any information about the water situation should be proofed by one person, such as Mr. Hennings, before it is disseminated. Mr. Martin also referred to a survey of utility rates in different cities contained in the Texas Municipal League magazine, and he asked why Corpus Christi was not included in that survey. Mr. Hennings said he would provide information. Mr. Martin said he had also seen an advertisement for Corpus Christi's Director of Finance, and he said there should be no action on that position until after the new City Manager is hired. Mr. Hennings replied that the recruiting process is very lengthy and he had hoped that the City Manager would be hired soon, and the process for hiring the Director of Finance could already be underway. Mr. Martin said that time had expired on the extensions for the outlet mall in northwest Corpus Christi. Mr. Hennings said staff would provide a report. Mr. Utter said staff had had conversations with the developer and were awaiting some additional information. He said staff would make a definitive recommendation on September 24, 1996. Mayor Pro Tem Best asked staff to also report the status of the Frost Brothers building. Mr. Utter said it was his understanding that the developers were supposed to close on their construction loan this month. Council Member Betty Jean Longoria requested a report on the outcome of the TNRCC meeting held September 10. Mayor Pro Tem Best called for petitions from the audience, and there were none. There being no further business to come before the Council, Mayor Pro Tem Best declared the Council meeting adjourned at 8:00 p.m. on September 10, 1996. * * * * * * * * * * * * *