HomeMy WebLinkAboutMinutes City Council - 10/22/1996I 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 October 22, 1996, which were approved
by the City Council on October 29, 1996.
WITNESSETH MY HAND AND SEAL, this 29th day of October, 1996
Armando Chapa
City Secretary
SEAL
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MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Council Meeting
October 22, 1996
2 p.m.
PRESENT
Mayor Mary Rhodes
Mayor Pro Tem Tony Heldenfels
Council Members:
Dr. Jack Best
Betty Black
Melody Cooper
Betty Jean Longoria
John Longoria
Edward Martin
Dr. David McNichols*
City Staff:
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 Rev. E.F. Bennett, following which the Pledge of
Allegiance to the flag of the United States was led by Council Member Betty Jean Longoria.
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 noted that a correction had been made to the minutes of the regular Council
meeting of October 15, 1996. Council Member Best made a motion to approve the amendment,
seconded by Council Member Heldenfels, and passed unanimously. There being no other
corrections, the Mayor proclaimed the minutes approved as amended.
supply.
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on Item 2, water rate restructuring and additional water
*Council Member McNichols arrived at the meeting at 2:05 p.m.
City Manager Hennings explained that three years ago the Council decided to acquire a
supply of water for the future. The Texas Water Development Board assisted in that effort through
the Trans -Texas Water Study, which showed that the city and the surrounding region would need
additional water supply by the year 2008. However, at that time it was not known that the area was
entering into a drought that has extended more than three years, resulting in the additional water
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Regular Council Meeting
October 22, 1996
Page 2
being needed much sooner than anticipated.
Mr. Hennings noted that during the last Council meeting, experts explained that the drought
persists in South Texas despite recent rains in September and early October. He said the current
combined reservoir level is 30.4%, but the lake levels are again falling and Condition III of the
Drought Contingency Plan is in effect, which includes restrictions on watering lawns every two
weeks. He said it has been predicted that without significant rainfall in the Nueces River watershed,
Lake Corpus Christi and Choke Canyon reservoir could run dry in 20 to 24 months.
Mr. Hennings continued that Corpus Christi has bought and paid for water in Lake Texana,
and the Texas Natural Resource Conservation Commission (TNRCC) has issued a permit to transfer
the water from Lake Texana to Corpus Christi. The Port of Corpus Christi Authority has hired
engineering consultants and is buying right-of-way for the pipeline to bring the water from Lake
Texana, for which the city is paying. He noted that construction of the pipeline is estimated to cost
$132 million, and the money will come from a bond sale which is being planned by the Nueces
River Authority (NRA). The City Manager stated that an agreement with the NRA is being
developed, and city water rates must be restructured so that prospective buyers of revenue bonds will
be assured that the revenue bonds will be an attractive investment.
He said that the restructuring of the water rates and the agreement with the NRA are the two
"critical path" actions before the Council in order to develop the pipeline project. He noted that over
the past several weeks, the Council has reviewed the city's water rate structure and the results of the
update of the cost of service study; in addition, they have identified a number of related issues that
need to be addressed in the near future.
Mr. Hennings said Item 2 was a proposed schedule for addressing the two critical path issues
as well as the related issues, which he described (the dates discussed were October 22 and 29;
November 5, 12, and 19; and December 17). He noted that November 5, 1996, which would not
normally be a Council meeting date, is an alternate date for approval of the contract with the NRA
for the pipeline, and for approval of a request that the Lavaca-Navidad River Authority (LNRA)
proceed with project facilities at Lake Texana.
Mayor Rhodes commented that President Clinton had signed an emergency drought -relief
bill for South Texas which defers payments on the Choke Canyon project for five years, freeing up
$21.2 million for alternate water supplies.
Council Member Best asked if that deferment applied to the entire debt or just the interest
payments; Mayor Rhodes replied that it applied to both.
Council Member Martin pointed out that the $21.2 million calculation is based upon the
annual payments the city would have made plus the draw -down of the Choke Canyon Reserve. Mr.
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Regular Council Meeting
October 22, 1996
Page 3
Hennings agreed that the effect on the budget constituted $3,245,000 a year, or a total for five years
of $16,225,000. Mayor Rhodes added that she sent letters on behalf of the Council to U.S. Rep.
Solomon Ortiz and Sen. Kay Bailey Hutchison, thanking them for their efforts in this endeavor.
Responding to a question from Council Member John Longoria, Mr. Hennings said the
restructuring of the water rates simply breaks the charge on the water bill into two parts --one for raw
water and the other for the remainder of water service. He said the increasing and decreasing block
rates apply to the portion that is the remainder of the water service; the two are not interdependent.
Mr. Hennings added that one alternative to the block rate structure is the flat rate structure, which
can be accomplished in a revenue -neutral way.
Council Member McNichols emphasized that the goal is to provide an adequate, affordable
amount of water before the current source is depleted. He said the Lake Texana water and pipeline
is the only available source which meets those criteria, and the urged the Council to support the
proposed plan of action.
Mayor Rhodes called for comments from the audience, and there were none. City Secretary
Chapa polled the Council for their votes as follows:
2. M96-323
Motion approving a plan of action for water rate restructuring and additional water supply.
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 3, "pass-through" cost of water supply.
City Manager Hennings explained that on December 14, 1993, the City Council adopted a
resolution that called for the Council and city staff to investigate the feasibility of treating the cost
of water supply as a "pass-through" cost in billing for water services, similar to the current method
of billing for natural gas purchases at cost. He noted that during recent Council meetings, staff has
discussed various aspects of the water rate structure, the cost of service study update, and examples
of customer bills using the "pass-through" approach.
He said staff concluded that that approach is feasible and has several advantages, which he
briefly discussed: prospective buyers of revenue bonds will be assured that there will be sufficient
revenue available to make the bonds an attractive investment; the adoption of the pass-through
approach will be revenue -neutral until additional costs are incurred; customers are familiar with the
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Regular Council Meeting
October 22, 1996
Page 4
pass-through approach since it has been present on their gas bills for many years; every customer
will be charged the same price for each 1,000 gallons of raw water; single-family residential
customers will see the lowest proportional increase in water bills when the cost of raw water
increases; and changes in actual costs of raw water (either cost reductions or increases) will be
passed on to customers on a timely basis, and such costs may fluctuate as much as 25% from month
to month.
Mr. Longoria asked why the costs would fluctuate by 25%. Mr. Hennings replied that they
would fluctuate depending on the blending of the Lake Texana and Colorado River water with the
Lake Corpus Christi and Choke Canyon water. He added that the Lake Texana and Colorado River
water are considered "expensive" water compared with the "less expensive" Lake Corpus Christi and
Choke Canyon water. He noted that if the area's two lakes are full, then the water pipeline would
not be pumped and the "less expensive" water would be used.
Mr. Hennings continued to describe advantages of the pass-through approach: the City
Council will have the opportunity to consider using available resources to pay debt service for the
increased cost of raw water while the pipeline is under construction; the pass-through approach is
consistent with state law and state regulation; and the approach is consistent with the City Charter,
specifically with the Charter provision imposing a 6% cap on annual utility rate increases. Mr.
Hennings said it was his belief that a vote in favor of the proposed ordinance is not a vote to
disregard the 6% cap.
The City Manager recommended that the Council adopt the ordinance on first reading. He
noted that the proposed ordinance adds a definition of the cost of raw water, as well as a provision
for passing through the raw water costs to the customer. It also reduces the schedule of charges for
the remainder of water service to offset the cost of raw water, so the result will be that it will not
cause any customer's total bill to change, but it will show the charge for raw water as a separate line
item on the bill.
Mr. Hennings said this action will enable the community and the surrounding area to benefit
from the water that was purchased at Lake Texana, to build the pipeline, and to take delivery of the
water as soon as possible.
Council Member Martin asked if the calculation for raw water would be made on a monthly
basis and would be added onto each customer's bill through administrative action, and Mr. Hennings
said it would be. He added that the starting point for the cost of raw water is 25¢ per 1,000 gallons.
Mr. Hennings said a proposal would be made to the Council soon to modify the raw water
customers' contracts so that they will all be paying the 25¢ per 1,000 gallons for raw water.
Mr. Martin pointed out that single-family residential customers pay a higher percentage for
treatment and distribution costs of water than do the other customer classes, while their percentage
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Regular Council Meeting
October 22, 1996
Page 5
of raw water costs is less.
Mr. Martin then asked staff to review the question that if changes in the block rate structure
are not revenue -neutral, how would they affect the Charter's 6% cap. Mr. Hennings noted that
according to state regulations, the burden would be on the city to show why the cost for water should
be different from the cost of service for outside -city -limits (OCL) customers; however, that same
test would not be applicable to inside -city -limits (ICL) customers.
In reply to Mr. Longoria, Mr. Hennings said staff did not yet have an operating plan for the
pipeline and the reservoir system; however, he said that essentially when the two lakes are full, the
city should not be pumping from the pipeline, but if they are not, the water should be pumped so as
to maintain the lakes' storage capacity. He added that the TNRCC would have to concur with
whatever operating plan is developed. Mr. Hennings also noted that once the pipeline is completed,
the fluctuation that will occur if the pass-through approach is adopted pertains to the cost of raw
water, which is currently only 12% of the total bill for a single-family residential customer. If there
is a 25% fluctuation from one month to the next, that would result in only a 3% fluctuation of the
total bill for a single-family residence.
Council Member McNichols asked Mr. Hennings to explain why residential customers pay
a higher percentage for treatment and distribution than do other customer classes. Mr. Hennings said
that residences use all the parts of the treatment, transmission, storage, pumping and distribution
facilities; in comparison, a business such as a refinery uses a much larger quantity of water through
less of the system. He noted that a consultant assessed the actual cost to serve each one of the
customer classes, and the study showed that the refinery class (ship channel industries and industrial
district customers outside the city limits) are paying in revenues an amount that is very close to what
it actually costs the city to serve them. At the same time, the study showed that the ICL single-
family residential class is paying more than what it costs to serve them, and the raw water customers
(which are all outside the city) are paying considerably less than what it costs to serve them.
Dr. McNichols also asked Mr. Hennings to elaborate on what portion of a particular class'
water bill is attributable to the actual cost of raw water. Mr. Hennings referred to a chart illustrating
those amounts, pointing out that for raw water customers, 100% of the bill is attributable to raw
water costs; wholesale treated water class - 20%; commercial and industrial class - 18%; single-
family residential class - 12%.
Council Member Best stated that the city has to pay for the water from Lake Texana whether
it takes it or not. Mr. Hennings reiterated that the only reason the city would not pump the Lake
Texana water is if both lakes are full and the city wanted to save the operating costs of the pipeline.
Responding to another question from Dr. Best, Mr. Hennings said that with regard to the
Garwood Irrigation Company, the city has the option to purchase their water rights, which is a one-
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Regular Council Meeting
October 22, 1996
Page 6
time purchase, and then the water that comes down the river in a certain amount belongs to the City
of Corpus Christi. In the case of Lake Texana, the city has purchased a certain quantity of water
each year from the lake. He said there is also a difference in the cost of moving the water from those
two entities. Dr. Best asked if there were any provisions for the city to sell water to another city, and
Mr. Hennings said that under certain limitations there would be such provisions.
Mr. Longoria asked about the time frame for extending the pipeline to Garwood. Mr.
Hennings said it was indefinite at this point. He said if the Council decided to exercise the option
to purchase the Garwood water rights, then the city will have to go through the process of applying
for an interbasin transfer permit through the TNRCC. He said staff is unsure exactly how long the
whole process would take. Mr. Longoria asked if there would be a greater legal challenge to the
Garwood water than to the Texana water. Mr. Hennings said staff hopes that they can convince
others of the fact that the city's purchase of water rights on the lower Colorado River would not
affect the upstream users at all.
Mr. Longoria commented that this issue is very complex and staffs presentation has changed
since they first began discussing it a few weeks ago. Mr. Hennings replied that staff has tried to
build on the presentation each week and carry it a step further --the basic premise has remained
unchanged. He added that this proposed ordinance is very simple since it involves dividing the
water bill into two parts, just as the gas bill is divided.
A brief discussion ensued about opportunities to consider this issue further, and Mayor
Rhodes said any of the Council members could submit particular questions to city staff so they can
incorporate that information into their upcoming presentations.
Mr. Martin asked when the increasing block rates were instituted for residential customers,
and Mr. Hennings replied that it was in 1984. Mr. Martin replied that method was developed not
as a result of a cost of service study but as a conservation measure. He added that according to this
recent cost of service study, the ICL single-family residential rates were higher than necessary and
need to be adjusted.
Responding to another question from Mr. Martin, Mr. Hennings explained that the proposed
ordinance would pass-through the actual cost of raw water, and then the agreement with the Nueces
River Authority would support the bond sale by the NRA and would commit the city to pay the NRA
indebtedness on those bonds. Mr. Martin asked if a bond validation suit would be required, and Mr.
Hennings said he did not know with certainty, but he thought the determining factor would be the
needs of the bond buyers to enable them to purchase the bonds.
Mr. Martin asked City Attorney Bray about his opinion concerning the 6% Charter provision
with regard to the raw water cost. Mr. Bray said that Charter provision basically states that the rate
for each utility service shall not be increased by more than 6% over the preceding year. He said the
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Regular Council Meeting
October 22, 1996
Page 7
underlying question is: what is meant to be covered by the phrase "rate for service"? He said one
answer that was given at the time of the passage of the Charter amendment was that it did not apply
to the gas pass-through cost, which was in effect at that time and has not been changed since then.
Mr. Bray added that there is nothing in that Charter provision that provides for any
distinction between water and gas; consequently, he said that issue has been interpreted for some
time with respect to a pass-through cost. Mr. Martin asked if Mr. Bray felt that taking a different
opinion on that issue would jeopardize the method used for gas costs, and Mr. Bray said he felt the
same principle needed to be applied to both water and gas.
Mr. Martin then asked if a possible challenge might be triggered when the cost of raw water,
when measured against the whole system, increases more than 6%. Mr. Bray replied that probably
would be the time a challenge would take place. Mr. Martin asked if any action the Council was
taking that day stated when that time would be, and Mr. Hennings said that question would be
determined by the Council in the future.
Mr. Martin commended Mr. Hennings on the background material for this item. He said it
should be understood that the Council was not adopting a rate schedule at this time, since it needs
to incorporate several factors not yet decided upon. Mr. Martin said he thought that the cost of
service/cost of raw water system is the fairest, most equitable way to distribute the costs. He said
it was his opinion that at such time that goes above 6% for ICL customers, it is inconsistent with the
intent of the Charter provision. He pointed out that voters were asked to consider an alternative
Charter amendment which would have specifically exempted pass-through costs, and that proposal
was defeated.
Council Member Heldenfels said he would not be able to attend a Council meeting on
November 5, 1996 if one is scheduled. Mayor Rhodes said that date was tentative due to the
uncertainty of the bond sale.
Mr. Heldenfels said he attended a recent presentation on desalination, and he did not think
city staff had give desalination proponents a fair hearing of their position. He also commented on
the uniqueness of the 6% utility rate cap. Mr. Bray agreed that he was not aware of any other cap
like that, and the main basis for interpretation is how it has been interpreted throughout with respect
to the gas charges.
Mr. Heldenfels said that water costs were different from fluctuating gas costs. Mr. Bray
replied that he did not see any basis in the language of the Charter itself to distinguish between gas
and water, and while there has been no need to date to apply the pass-through concept to water costs,
when circumstances changed to where the cost of water is going to increase significantly, then there
is a reason to apply that concept to water costs.
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Regular Council Meeting
October 22, 1996
Page 8
Mr. Heldenfels said once water costs increase, they will stay high and they will not fluctuate.
Mr. Bray said the raw water costs will fluctuate for different reasons; one element will be the power
costs charged by Central Power and Light. Mr. Heldenfels said he did not think gas and water costs
should be compared.
With regard to the desalination issue, Mayor Rhodes said staff and the Council spent several
years investigating possible water sources, including desalination. Experts stated that while
desalination should continue to be assessed and considered as a future water supply, the only
affordable solution at this time was the Lake Texana water source.
Dr. McNichols echoed Mayor Rhodes' comments about the importance and affordability of
the Texana water, adding that he is still interested in desalination but it is not a viable option at this
time. He added that the Council did not wish to violate the spirit of the 6% rate cap and are acutely
aware of the implications.
Mayor Rhodes called for comments from the audience.
Capt. Don Peters, Commanding Officer at Naval Station Ingleside, said that as a result of the
expansion of the Mine Warfare Center of Excellence at both Naval Station Ingleside and Naval Air
Station Corpus Christi, this is one of the very few military areas in the country that is expanding.
He said the military payroll now approaches an economic impact of almost $1 billion a year. Capt.
Peters showed aerial photos of the drastic development of Ingleside, and emphasized the importance
of maintaining an adequate, reliable supply of water to this area. He added that from the Navy's
experience, with the exception of ships at sea where there is no other alternative, desalination cannot
provide an immediate, practical solution given the current state of technology.
Mr. John Hartley questioned the statements made previously by one of the experts who had
addressed the issue of desalination, and he commented on his involvement in studying that issue.
He questioned what the size of the Texana pipeline will be, and he mentioned the City Charter's
reference to utilities and the 6% cap.
Mr. Clayton Sap briefly discussed multi -effect distillation power desalination, adding that
that concept should be considered. He said Lake Texana also has the possibility of running dry.
Ms. Dee Huber said the effort to secure a new water supply was undertaken too late. Mayor
Rhodes replied that the same people who criticized her for starting the long-term water supply
planning process in the first place are now accusing her of not starting soon enough.
Mr. Phil Rosenstein said he disagreed with Dr. McNichols, saying that he felt the
homeowners were receiving a "bum rap" with regard to the water rates.
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Regular Council Meeting
October 22, 1996
Page 9
Ms. Marie Speer, publisher of the Flour Bluff Sun, said a readership survey revealed that 4%
of those who responded favored a pipeline, while 94% favored desalination. Mayor Rhodes pointed
out that Corpus Christi supplies water to about 500,000 people.
Mr. Leon Perez, 904 Buford, said the last person he expected to hear address desalination
was a Navy captain.
Mr. Alex Harris said he was representing the Greater Corpus Christi Business Alliance. He
said the Board of Directors met that morning and endorsed the concept in front of the Council, and
he asked them to approve it as well. He said the Alliance is very interested in the area's long-term
supply of water.
A citizen said the Council has spent a great deal of time studying this issue, and emphasized
the importance of an adequate water supply.
Mr. J.E. O'Brien, 4130 Pompano, said the theory of the pass-through approach appears to
be a step in the right direction; however, he said that approach is not consistent with the will of the
voters of Corpus Christi. He added that he believes the current rates are preferential, prejudicial and
discriminatory, and violate the Public Utility Regulatory Act. Mr. O'Brien referred to examples in
the support material which he said violate the 6% rate cap.
Mr. Ray Allen, Chairman of the Coastal Bend Bays Foundation, thanked President Clinton
for approving the Choke Canyon debt deferment. He said they believe that the basis for true
conservation is that each class of customers should pay their fair share for water, and this proposal
moves the city much closer to that step. Mr. Allen said that after reviewing several other options,
including desalination, he concluded that Lake Texana water is the lowest -cost option facing this
community today.
Mayor Rhodes asked the police officer present to escort Mr. John Hartley out of the Council
chambers because he continued to shout out while Mr. Allen made his comments. The Mayor then
told Mr. Allen that she had received a letter from a woman living in Bayside, who said their water
rates are very expensive; to illustrate, she included a copy of Bayside's water rate schedule.
Mr. Foster Edwards, Executive Vice President of the Corpus Christi Board of Realtors, said
they have given this rate plan great consideration and they feel it is the most cost-effective, fastest
way to acquire an additional water source. He said they appreciate the Council's efforts,
emphasizing that water is an overriding issue.
Mr. Andrew Rodriguez asked the desalination proponents what will be done with the tons
of salt that will be produced using that method.
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Regular Council Meeting
October 22, 1996
Page 10
Mayor Rhodes then asked the police officer to escort Mr. Leon Perez out of the Council
Chambers for also shouting out.
Council Member Betty Jean Longoria asked if desalination was still being considered as a
long-term option. Mr. James Dodson, Regional Water Director, said a subcommittee of the Regional
Water Supply Task Force was investigating additional water supplies beyond Lake Texana and
Garwood. He said they have long stated that desalination is one of those alternatives that needs to
continue to be evaluated; however, all the evidence states that the city has to pursue the most
dependable and affordable sources first, which are Lake Texana and Garwood.
Mrs. Longoria alluded to comments made by some speakers about the Council members
being "passed through" during the next election, saying that was not her concern; rather, she was
concerned with the area's water supply.
Dr. Best said the Council and the community need to work to supply an adequate amount of
water because it affects all aspects of the area's future.
City Secretary Chapa polled the Council for their votes as follows:
3. FIRST READING ORDINANCE,
Amending Section 55-50 of the Code of Ordinances, City of Corpus Christi, regarding water
rates; providing for repeal of all ordinances in conflict; providing for severance; providing
for an effective date; and providing for publication.
The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black,
Cooper, B. Longoria, J. Longoria, and McNichols voting "Aye"; Heldenfels and Martin
voting "No."
* * * * * * * * * * * * *
Mayor Rhodes called for a five-minute recess.
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on Item 4, financial plan to rebuild General Fund ending
balances.
City Manager Hennings said this item was in response to the bond rating agencies' concerns
about the low balance in the General Fund budget, and they requested that the city develop a
financial plan to rebuild the fund balance to levels consistent with earlier years. He said one item
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Regular Council Meeting
October 22, 1996
Page 11
of significance in the plan was a suggestion to lower the reserve requirement that is maintained in
the debt service fund from 75% to 60%. It is also proposed that when the city has a future bond sale
following a bond election, a reserve on future voter -approved bonds would not be maintained.
Mr. Hennings referred to a chart in the support material illustrating the General Fund
financial plan five-year ending balance. He noted that the target is to rebuild the balance in fiscal
year 1997-98 to about $2 million; $2.9 million in FY 1998-99; $3.9 million in FY 1999-2000; $5.7
million in FY 2000-01; and $7.8 million in FY 2001-02. He said staff is preparing to take this plan
to the bond rating agencies in New York to discuss it with them, and they hope it will answer their
concerns.
He said the problem the city continues to face is that the Police and Fire department budgets
continue to increase faster than the tax revenues increase; consequently, other revenue sources need
to be found to fund those services as well as other General Fund services, particularly street and park
maintenance. He this item also relates to Item 5 concerning the city's legislative policy.
Council Member McNichols said he thought this was an overall excellent plan to respond
to the bond rating agencies' concerns, and he emphasized the importance of rebuilding the General
Fund ending balance. He noted that for several years the city suffered from a declining tax base
coupled with an expanding need for services. Dr. McNichols referred to a chart which showed that
General Fund expenditures for public safety in 1993 were approximately $39.9 million, while the
current adopted budget calls for public safety expenditures of $55.3 million, an increase of 38.7%.
Dr. McNichols also discussed the city's agreement with the Regional Transportation
Authority (RTA), whereby the RTA distributes 5% of sales tax receipts that are designated for
transportation -related programs. He stated that the Metropolitan Transit Authorities in other Texas
cities distribute higher percentages of sales tax receipts, including 25% in Houston and 15% in Ft.
Worth. He said Corpus Christi's contract with the RTA needs to be modified.
Dr. McNichols asked about the proposal in the financial plan to reduce the FY 1997-98
General Obligation Debt Service Reserve from 75% to 60%. Mr. Hennings replied that the rating
agencies examine the General Fund ending balance more closely than the reserve. He added that the
reserve would still be well in excess of that required by the bond covenants, and the 75% policy has
been self-imposed.
Responding to another question from Dr. McNichols, Mr. Hennings explained that staff
budgets in the G.O. Debt Service Fund the amount of money that is needed to make the principle
and interest debt service payments that are due during the budget year; staff also maintains an
additional amount in that fund equal to 75% of the following year's payment requirements, which
constitutes the reserve. Dr. McNichols asked if there was any risk in decreasing that reserve amount.
Mr. Hennings said he thought the bond rating agencies would rather see a General Fund ending
Minutes
Regular Council Meeting
October 22, 1996
Page 12
balance that is healthy enough to deal with unexpected expenses.
Dr. McNichols questioned the need for the G.O. Debt Service Reserve Fund in the first place.
Mr. Hennings pointed out that staff does not use the reserve amount to pay the debt service --it is just
a contingency fund that accrues interest, and the interest earned is rolled into the following year's
budget to meet payment obligations.
Council Member Best said he attended a recent meeting of members of the Texas Municipal
League (TML), and one of the issues they discussed was how to recover some of the revenues of the
road and bridge tax that is collected in Texas counties. He said TML voted not to sponsor such a
bill but the organization said they will support it if the legislation is introduced in the Texas
Legislature. Dr. Best said it is unfair that Nueces County collects all of the revenue from that tax,
while the vast majority of county residents live in the Corpus Christi city limits, and the city does
not benefit from it.
Council Member John Longoria asked what was being done to protect the budget from such
occurrences as high overtime expenses in public safety. Mr. Hennings said there is a three-way
check of that expense to avoid it happening again. Mr. Longoria commented about recent reports
of increasing crime, and he questioned whether there was an increase in actual crimes committed or
just the reporting of crimes. He also referred to a previous discussion he had raised concerning a
general city-wide crime initiative, commenting that he had not seen any results from that suggestion.
Mr. Hennings pointed out that the newspaper report indicated increases in some types of crime, and
decreases in others. He said staff will provide analyses of programs as they progress.
Mr. Hennings added that the five-year financial plan does incorporate some elements of the
Police Department's five-year plan; however, the city does not have the financial capacity to include
all of them. Mr. Longoria said the responsibility of fighting crime is not solely the Police
Department's --residents must become involved as well in preventing crime from occurring.
Council Member Martin said this plan was important because it established financial goals
and a method for monitoring progress, as well as involving the Council as part of the solution on an
on-going basis. He said it was his opinion that if a city has a plan and abides by it, the city does not
give the rating agencies any cause to change their rating. He also suggested that the monthly
financial report that was just distributed to the Council should become a quarterly report instead.
Referring to the proposed financial plan, Mr. Martin said that there were some components
that he agreed with and some he did not. He pointed out that if the Southwestern Bell franchise fee
is increased as proposed, the people who will end up paying for it are the telephone customers. Also,
he suggested that regarding the RTA contract, the Mayor could appoint a Council committee to meet
with their representatives on the RTA board to discuss some options. Mr. Martin also asked about
the proposal to implement franchise fees for water, wastewater and gas utilities. Mr. Hennings
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Regular Council Meeting
October 22, 1996
Page 13
replied that that item was not included in the plan but was introduced for discussion purposes.
Mr. Martin questioned the proposal to lower the reserve requirement from 75% to 60%. He
asked if there was an option whereby staff notes in the budget and to the rating agencies that the city
recognizes that probably only a 60% coverage was necessary. In addition, it could be noted that the
additional 15% is available and can be transferred to the General Fund as a reserve balance at any
time, or used for any legitimate General Fund purpose, but the city prefers to keep it in the G.O. Debt
Service Reserve. He said another option was to put the l5% in the General Fund but indicate that
that money is encumbered and is not to be appropriated. Mr. Martin said the problem that has
occurred is that the city has appropriated the fund balances rather than raise taxes or seek other
revenues. Mr. Martin noted that the plan included some major policy items which needed much
more discussion.
Mr. Hennings said he envisioned the plan as a commitment to build the General Fund reserve
to $2 million in FY 1997-98, and the individual elements would come to the Council as separate
actions before the budget is adopted or at other times. Additionally, if the city's financial picture
improves, then some of the elements will not have to be undertaken, or the city can make additional
expenditures as warranted. Mr. Martin said he thought some of the proposals should be pursued
immediately while others needed to be considered further. He added that it was a major
accomplishment this year that the city had current revenues exceeding current expenditures on a
budget basis.
Mr. Martin suggested that staff hold this item and come back next week with a resolution that
does not suggest the Council is voting on these specific items but is voting on a plan instead, and is
instructing the City Manager to explore the elements in some fashion. Mr. Hennings said he would
like to have the plan approved as quickly as possible in order to answer the bond rating agencies'
concerns. He noted that the resolution merely says that the Council is adopting a plan. A brief
discussion ensued.
Mr. Hennings then said that City Attorney Bray suggested the following amendment in
Section 1 of the resolution: "That a Financial Plan to rebuild General Fund balances to prior year
levels and ensure that acceptable levels are maintained in future years, attached hereto as Exhibit
'A,' is hereby approved, provided that particular revenue or expenditure items in Exhibit 'A' may
be substituted or added to accomplish the ultimate financial goal (amendment underlined) Further,
that the City Manager is instructed to review and update the Financial Plan annually and report the
results to the City Council."
Mayor Rhodes made a motion to amend the resolution as indicated above, seconded by
Council Member Betty Jean Longoria; the motion passed.
Mr. Martin reiterated that he thought the overall plan was good but the individual provisions
Minutes
Regular Council Meeting
October 22, 1996
Page 14
needed to be discussed, such as the five-year General Fund proforma of revenues and expenditures.
Mr. Hennings said staff could present a series of workshops on the various elements, but he was
concerned about the timing of adopting the plan as there are many major water issues facing the
Council during the next several weeks.
Council Member Black said she supported the plan, noting that these are issues which need
to be addressed. She also asked about a large increase in public safety expenditures which occurred
in 1995. Mr. Hennings replied that one reason for the increase was that Emergency Medical Services
funding of $1.7 million was reclassified to public safety; in addition, there were increases in salaries
and number of personnel.
Council Member Heldenfels asked what would be required to adopt franchise fees for
utilities. Mr. Hennings responded that it would require a Charter revision. He added that basically
staff was illustrating options that are available to increase revenues and to accommodate increased
expenditures that will occur; he reiterated that the franchise fee option was not included in the plan
itself.
Mrs. Longoria commended Mr. Hennings and staff on the plan, adding that she agreed that
more discussion was needed, particularly on certain items such as the RTA contract.
Dr. McNichols asked when Mr. Hennings needed to take the plan to the rating agencies in
New York, and he replied that there was no specific time, but hopefully in the next few weeks. Dr.
McNichols said he would support approving the plan and then each week thereafter for a few weeks
discussing certain items in the plan.
Mayor Rhodes suggested that the Council vote on the plan as amended. Mr. Hennings said
since the plan would be presented to the rating agencies, he would like it to be unanimously
supported by the Council --if that meant holding it and reconstructing it, then he would do so.
Mr. Martin suggested that Mr. Hennings and staff structure this as a plan with goals, as well
as a "shopping list" with actions that the Council will review in order to accomplish those goals.
Mr. Hennings said he would like to postpone this item, and the Mayor agreed that it should
be tabled for one week. She agreed with Mr. Martin's suggestion of forming a Council committee
to address the RTA contract, and she asked him to serve and to select two other Council members.
4. POSTPONED
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Regular Council Meeting
October 22, 1996
Page 15
* * * * * * * * * *
*
**
Mayor Rhodes opened discussion on Item 5, legislative policy for City of Corpus Christi.
Before making his presentation, City Manager Hennings noted that the smell of smoke could
be detected in the Council chambers. He said the city's old bus terminal was burning, and Fire Chief
J.J. Adame assured them that it was under control.
Regarding Item 5, Mr. Hennings explained that the Texas Legislature will convene in January
and work has already begun on legislation that will be introduced during that session. Consequently,
it is time for the city to prepare its legislative policy to inform and guide the area's legislative
delegation.
Mr. Hennings said the proposed legislative program is a resolution that basically affirms that
the city opposes legislation that reduces the authority of cities or undermines the principle of home
rule and local self-government; and that the city supports legislation that provides more local control,
protects city revenues, or protects policies previously established through the City Charter or through
city ordinances or other Council actions. In addition, the policy would make a high priority the
protection of the city's water supply and water rights; support for Texas A&M University -Corpus
Christi and Del Mar Junior College; and oppose unfunded federal or state mandates.
Mr. Hennings said the program also outlines the procedure whereby the Council will
determine the city's position on legislative issues, and that only the Council, the City Manager, or
staff as designated by the City Manager, would communicate the city's legislative positions unless
first approved by the City Council.
The City Manager said this year staff is suggesting that three specific items be added to the
Legislative program: that the city oppose legislation which would limit its annexation authority; that
the city support an additional revenue source to support street maintenance; and that the city support
legislation that will allocate a share of the 9-1-1 fee to support the Police Department's 9-1-1 system.
He added that the Council's agenda packet included reports from various TML legislative policy
committees, and the TML convention will be held in Corpus Christi next month and they will be
adopting their legislative plan.
Council Member Betty Jean Longoria asked who would sponsor legislation concerning the
road and bridge fees. Mr. Hennings said staff would need to find out; he added that the Council
would need to decide whether they wished to approach the Nueces County Commissioners first or
approach the Legislature. Mrs. Longoria said that issue was very important to the city as a funding
source.
Council Member Martin said it would be very beneficial to determine the legislative
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Regular Council Meeting
October 22, 1996
Page 16
positions of other local entities (i.e., the county, Alliance, school districts) in order to make a
concerted, coordinated lobbying effort so that the area's legislators have a clear understanding of the
positions. As a related issue, he asked if the proposed "buy-out" program that failed to pass during
a previous legislative session could be reintroduced among the Council members and possibly in the
Legislature. Mayor Rhodes agreed that it should be revisited, and Mr. Hennings said staff would
provide a status report.
Council Member Heldenfels said he did not object to the legislative plan (Item 5.a.), but he
was concerned about the proposal under Item 5.b. for legislative services with a consulting team.
Mayor Rhodes said the Council could vote first on Item 5.a. City Secretary Chapa polled
the Council for their votes as follows:
5.a. RESOLUTION NO. 022729
Resolution adopting a statement of legislative policy for the City of Corpus Christi during
the 75th Texas Legislature.
The foregoing resolution passed by the following vote: Rhodes, Best, Black, Cooper,
Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
Mayor Rhodes then referred to Item 5.b., a proposed contract for legislative services with the
team of Cliff Johnson, Reggie Bashur and the firm of Johnson and Johnson, at a rate of $15,000 per
month for one year plus reasonable expenses.
The Mayor said she knew that sounded like a great deal of money for legislative services,
but she emphasized that all indications are that water will be a major issue during this legislative
session, and more specifically, Corpus Christi will be under attack regarding its water situation and
related actions.
Mr. Hennings echoed Mayor Rhodes' comments, adding that this issue affects not only the
city's Garwood water rights option but also the Lake Texana project. He said there would be people
in the Legislature suggesting that all future interbasin transfers be banned. Mr. Hennings noted that
one of the most successful community endeavors in recent years was the homeport effort, and it was
accomplished by employing the very best consultants the city could find to work in Washington and
to support local efforts.
Mr. Hennings said staff feels that the team being proposed to provide legislative services on
the water issue are also the very best people to help in this effort. He said they relied heavily on
advice from Mr. Tim Brown, the city's water attorney in Austin, who is familiar with their work.
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Regular Council Meeting
October 22, 1996
Page 17
Mr. Heldenfels asked why three separate individuals or firms were needed. Mr. Hennings
replied that when the Legislature is in session and the water issue is a priority agenda item, a number
of committees will be dealing with several pieces of legislation that will be introduced. He said
since many things occur simultaneously, it is not something that one person can accomplish alone.
City Attorney Bray added that the leader of the team will be Mr. Cliff Johnson, who is
recommended as the most knowledgeable about water issues and working with the Legislature. He
explained that Mr. Johnson had a high position in the Governor's Office and was a member of the
Texas Water Commission, as well as serving as a member of the Texas House of Representatives.
He said the law firm of Johnson & Johnson (no relation to Mr. Cliff Johnson) is extremely familiar
with the Legislature as a whole, and Mr. Bashur is a governmental relations and communications
consultant.
Mr. Heldenfels asked why the time period of the contract was one year. Mr. Bray replied that
contracts with Austin lobbyists tend to run for one or two years. Mr. Heldenfels said the legislative
session only runs 140 days unless a special session is called. Mr. Bray said there is a great deal of
work that needs to be accomplished now, such as pre -filing of legislation, and the first seven months
are the most intense.
Mayor Rhodes called for comments from the audience on Item 5.b.
Mrs. Dorothy Spann, 502 Del Mar, said she wished to comment on Item 5.a. She said she
had questions concerning specific aspects of the TML legislative policy committee reports. Mr.
Hennings said staff would provide Mrs. Spann with whatever information she needed.
Ms. Dee Huber questioned why people from Austin were being hired to represent Corpus
Christi's interests. She added that Corpus Christi's elected representatives should do that. Mayor
Rhodes explained that it was not possible for this city's Mayor and Council members to be present
in Austin to lobby full-time for the city's interests.
Mr. J.E. O'Brien, 4130 Pompano, commented that Item 4 dealt with the need to build up the
city's financial reserves, and this proposal recommended spending more money on consultants'
services. He said the local members of the Texas House of Representatives and the Senate were paid
with tax payers' dollars to represent the interests of the local community.
Mr. Jerry Kane, Co -Chairperson of the Regional Water Supply Task Force, cited his
experience serving on state boards, and commented on the complexity of state politics. He reiterated
earlier comments that the water issue will be the most important issue during this legislative session,
and these consultants were necessary. Mayor Rhodes added that the Texas Municipal League, which
has a very large staff, is reluctant to introduce legislation due to the time-consuming and complicated
nature of the legislative process.
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Regular Council Meeting
October 22, 1996
Page 18
Mr. Alberto Sifuentes said he had a question about high weeds around Coles Special
Emphasis School, and Mayor Rhodes pointed out that the item under discussion was the legislative
services contract. She added that Mr. Sifuentes would have an opportunity to address the Council
near the end of the meeting.
Mrs. Spann questioned the services the city would be provided for the consultants' fee.
Mr. Martin said he thought that the specific issue concerning Corpus Christi's interests was
the Garwood water rights option. He questioned why the consulting team could not represent the
city on its whole legislative package, and he added that he felt the fee was excessive since the
consultants will only be dealing with the water issue.
Mr. Hennings agreed that this was a large contract, but he reemphasized that this team was
the most qualified team they could assemble. Mr. Bray said the purpose of hiring three entities was
to ensure that diverse concerns and activities were addressed. He reviewed the strengths and
specialties that each member brought to the consulting team.
Mr. Martin said he was not opposed to hiring a lobbyist, but he continued to question the fee
and the number of consultants involved. He also asked what specific issues would affect Corpus
Christi. Mr. Bray replied that the issues were interbasin transfers, which would affect not only
Garwood but other possible future water sources, and legislation involving the Edwards Aquifer and
San Antonio's efforts to capture more water resources.
Mr. Martin asked if the local legislative delegation would be comfortable working with the
consultants. Mr. Hennings said staff had not approached members of the Legislature about this
proposal. He pointed out that much of the work would not involve the local delegation members.
He emphasized that the consultants do have a good reputation with the Legislature. Responding to
another question from Mr. Martin, Mr. Bray described how the consulting team was assembled.
Mr. Hennings pointed out that a consulting team was hired to support the city's efforts in
maintaining the area's military facilities; for that effort, the city spent $16,000 a month for 10
months.
Dr. McNichols said it was important to hire people who possess the necessary skills and are
familiar with the political process to accomplish the city's goals. Mrs. Longoria echoed Dr.
McNichols' comments.
Dr. Best said the Council should stop "micro -managing" the city and rely on the City
Manager's recommendation.
Mr. Kane said the whole issue of interbasin transfers goes beyond Garwood, including
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Regular Council Meeting
October 22, 1996
Page 19
possibly the city's ability to secure desalinated water in the future.
Mr. Longoria asked if it was possible for the federal government to become involved in some
of these issues, thereby requiring another consultant be hired. Mr. Hennings said that anything was
possible, but he had not heard of any such speculation.
Mr. Martin asked who would be working to promote the rest of Corpus Christi's legislative
package. Mr. Hennings replied that he and Mr. Keith Arnold of the Alliance would discuss that
issue.
City Secretary Chapa polled the Council for their votes as follows:
5.b. M96-324
Motion authorizing the City Manager to execute a contract for legislative services with the
team of Cliff Johnson, Reggie Bashur and the firm of Johnson and Johnson, at a rate of
$15,000 per month for one year plus reasonable expenses.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B.
Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Heldenfels voting "No."
Mr. Martin asked if this cost would be charged as an expense of the water system against the
water customers, including raw water customers, and Mr. Hennings replied affirmatively.
* * * * * * * * * * * * *
Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and
ordinances from previous meetings on Items 6 through 14, and Council Members requested that
Items 6, 7, 10, and 11 be withheld for discussion.
City Secretary Chapa polled the Council for their votes and the following were passed:
8. M96-327
Motion authorizing the City Manager or his designee to sign Contract Amendment #6 for
spillway data collection, inspection and structural/stability analysis services for Wesley Seale
Dam with Freese and Nichols, Inc. in the amount of $250,000.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper,
Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
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Regular Council Meeting
October 22, 1996
Page 20
9. M96-328
Motion awarding a contract in the amount of $55,000 to Bracco Construction Company for
the O.N. Stevens Water Treatment Plant: Lime Grit Removal System Replacement Project.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper,
Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
12.a. M96-331
Motion authorizing the City Manager or his designee to accept a grant from the U.S.
Department of Commerce, Minority Business Development Agency for $70,000 to carry out
the Minority Business Opportunity Committee (MBOC) Program.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper,
Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
12.b. ORDINANCE NO. 022730
Ordinance authorizing the appropriation of $70,000 received from the U.S. Department of
Commerce, Minority Business Development Agency in the No. 162 Federal/State Grants
Fund to continue the MBOC Program.
An emergency was declared and the foregoing ordinance passed by the following vote:
Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols
voting "Aye."
13.a. M96-332,
Motion authorizing the City Manager or his designee to accept a grant in the amount of
$145,201 and to execute Contract Change No. 3 to contract No. 7460005741-97 with the
Texas Department of Health for expanded tuberculosis prevention and control and outreach
services during the period September 1, 1996 to August 31, 1997.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper,
Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
13.b. ORDINANCE NO. 022731
Ordinance appropriating a grant from the Texas Department of Health in the amount of
$131,101 for expanded tuberculosis prevention and control and outreach services during the
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Regular Council Meeting
October 22, 1996
Page 21
period September 1, 1996 to August 31, 1997; adding $131,101 in the No. 162 Federal/State
Grants Fund - Health Department.
An emergency was declared and the foregoing ordinance passed by the following vote:
Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols
voting "Aye."
14. ORDINANCE NO. 022732
Authorizing the City Manager or his designee to execute a one year lease, with the option
to renew for additional one year periods through the year 2011, with the U.S. Department of
Transportation, Federal Aviation Administration (FAA) to operate the Remote Transmitter
Site No. 2 and Remote Receiver Site (FAA lease DTFA07-97-L-01062), in consideration of
the FAA establishing, maintaining, and operating Air Traffic Control Tower Facilities at the
Corpus Christi International Airport; 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 on Item 6, purchase of color film processor.
Council Member Black asked if the Law Enforcement Trust Fund was the drug fund, and Mr.
Hennings said it was.
Mayor Rhodes called for comments from the audience, and there were none. City Secretary
Chapa polled the Council for their votes as follows:
6. M96-325
Motion approving the purchase of one color film processor in accordance with Bid Invitation
No. BI -0015-97 from AGFA Division Bayer Corporation, Wilmington, MA, based on the
low bid of $15,210. The processor is for the Police Department and funds are available
through the Law Enforcement Trust Fund.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B.
Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Heldenfels absent.
* * * * * * * * * * * * *
Minutes
Regular Council Meeting
October 22, 1996
Page 22
Mayor Rhodes opened discussion on Item 7, purchase of a pumper fire truck.
Responding to Council Member McNichols, Mr. Hennings said this truck was a replacement
for another. Chief Adame added that the city has 19 pieces of fire equipment in front-line service
and four reserve units. Mr. Hennings said the city's program involves replacing at least one item
every year.
Council Member Martin referred to a previously purchased custom-designed fire vehicle,
pointing out that this item was not custom-designed, resulting in a $40,000 savings. Mr. Hennings
said the Fire Department's inventory has been designated to different fire stations depending on the
volume of use of the equipment at each station. Chief Adame added that two of the customized units
contain high-volume pumps. Mr. Martin said he felt that all of the fire trucks should be purchased
in the same manner as this item.
Mayor Rhodes called for comments from the audience, and there were none. City Secretary
Chapa polled the Council for their votes as follows:
7. M96-326
Motion approving the purchase of one 1250 GPM Pumper Fire Truck from the Houston -
Galveston Area Council (H -GAC) for the total amount of $199,975. The purchase is made
through the H -GAC Cooperative Purchasing program. The truck is budgeted by the Fire
Department in the 1996-97 Capital Outlay.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B.
Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Heldenfels absent.
ars**********
Mayor Rhodes opened discussion on Item 10, Carroll Lane trunk main rehabilitation.
Council Member Black asked why there was such a variation of the bids on this item. Mr.
R.H. Shackelford, Director of Engineering Services, explained that the high bidder typically does
not do this kind of work.
Council Member Martin said there was a very attractive bidding climate at this time, and he
said that in order to expedite the process, staff may want to consider contracting for some of the
engineering services.
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
October 22, 1996
Page 23
10. M96-329
Motion awarding a contract in the amount of $428,842.25 to Insituform Gulf South, Inc. for
the Carroll Lane Trunk Main Rehabilitation Project.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B.
Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Heldenfels absent.
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on Item 11, Horne Road/Houston Street trunk main
rehabilitation.
Council Member McNichols asked about one of the bids that was not received in the City
Secretary's office by the designated time. Mr. Hennings said the company in question had bid city
jobs in the past, and those bids had been successfully delivered to the City Secretary's office.
Responding to questions from different Council members, Mr. Hennings explained that the bidder
had paid United Parcel Service to deliver the bid, and the UPS employee delivered the bid to the
city's mail room.
Mr. Shackelford said staff has made efforts to emphasize in the bid documents the location
to which bids need to be delivered. Mr. Hennings referred to the delivery notification form in the
support materials, which indicated that the shipment address for this bid was City of Corpus Christi,
1201 Leopard Street.
Mr. Carl Crull, Assistant City Manager for Public Works and Utilities, added that contractors
had used both UPS and Federal Express in the past, and bid documents had been delivered directly
to the City Secretary's office on the first floor of City Hall. For some reason in this case, UPS
delivered the bid documents to the mail room in the basement instead of to the City Secretary's
office. He said it is incumbent upon the contractor to ensure that his bid documents are delivered to
the correct location.
Council Member Martin suggested that the mail room employees be instructed to not accept
mail that is not addressed to them. Mr. Hennings said in this case the employee signed for a package
that was generically addressed to the City of Corpus Christi.
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
October 22, 1996
Page 24
11. M96-330
Motion awarding a contract in the amount of $987,945 to Insituform Gulf South, Inc. for the
Horne Road/Houston Street Trunk Main Rehabilitation Project.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B.
Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Heldenfels absent.
* * * * * * * * * * * * *
Mayor Rhodes called for the City Manager's report. Mr. Hennings said that during the
meeting on October 29, 1996, the Council would consider the second reading ordinance restructuring
the water rates, as well as the agreement with the Nueces River Authority on the bond sale and
construction of the pipeline to Lake Texana.
Mr. Hennings announced that there had been some inflow into the lakes, and the city is
obligated to pass through 423 acre-feet of water to the Nueces Estuary before the end of October.
In order to meet that deadline, staff will begin on October 25th to increase the amount that flows
from the lake down the Nueces River, and it will take about five days to pass that amount through
to the estuary.
In her report, Mayor Rhodes stated that the Council meetings of December 24th and 31st fall
on Christmas Eve and New Year's Eve and will be canceled; the first meeting in January will be
January 7, 1997. She added that the National League of Cities convention will be held December
7-10, 1996 in San Antonio, and of the five Council members who are planning to attend, two will
miss the Council meeting on December 10th. She also asked the Council to keep December 3rd free
as a tentative Council meeting date.
Mayor Rhodes called for Council concerns and reports.
Council Member Martin asked if staff would provide a report on police overtime, and Mr.
Hennings said they would. He also asked for more information on other cities which are not
following Corpus Christi's water conservation plan, and on the reported increase in crime.
Council Member Cooper announced that the Mayor's Task Force on Youth Violence would
meet October 24, 1996 in the Council chambers. They will be discussing the "Paint Out the
Violence" campaign which will be held on October 26, 1996.
Council Member John Longoria asked if there was an extraordinary number of temporary
employees working for the city, and Mr. Hennings said he would provide a report. Mr. Longoria
also asked about police overtime, suggesting that police officers' schedules be rearranged so that
Minutes
Regular Council Meeting
October 22, 1996
Page 25
they would not have to be paid overtime if they are assigned to community relations tasks (such as
speaking engagements) in the evenings. Mr. Longoria also suggested that the Administrative
Analysis Committee begin holding meetings again, and he asked for a status report on negotiations
with firefighters. Mr. Hennings said they were in mediation.
Council Member Betty Jean Longoria said the TML conference that will be held in Corpus
Christi next month is setting attendance records.
Council Member Black thanked the Downtown Management District for their involvement
in the "Antiques by the Bay" event, which she said was a big success.
*************
Mayor Rhodes called for petitions from the audience.
Ms. Anna Werner, 810 Oak Park, expressed concern about someone she said was deceiving
and stealing from her uniform business. She said she has made reports to the Police Department,
but has received no satisfaction. Mayor Rhodes assured her that she will read the information Ms.
Werner provided.
Ms. Dee Huber said that the people who attended the Council meetings were trying to get
involved in city issues, and she said the Mayor should not make remarks about them. Mayor Rhodes
said she was not criticizing them, only pointing out that some specific citizens she had commented
about had never been elected to public office.
Mr. Alberto Sifuentes, a parent volunteer at Coles Special Emphasis School, said there was
a problem with very high weeds around the school, making it difficult for motorists to see students
going to and from school.
There being no further business to come before the Council, Mayor Rhodes declared the
Council meeting adjourned at 6:25 p.m. on October 22, 1996.
*************