HomeMy WebLinkAboutMinutes City Council - 10/29/1996I 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 29, 1996, which were approved
by the City Council on November 12, 1996.
WITNESSETH MY HAND AND SEAL, this 12th day of November, 1996
Armando Chapa
City Secretary
SEAL
*0°.
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Council Meeting
October 29, 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 Council Member Best, following which the Pledge of
Allegiance to the flag of the United States was led by Council Member McNichols.
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 October
22, 1996, and there being no corrections, she proclaimed them approved as presented.
* * * * * * * * * * * * *
The Mayor announced that there would be two presentations.
Council Member Black discussed the "Founder's Walk" (Volkswalk), which will be held
November 2, 1996 beginning at the Sandy Shores Hotel on North Beach and culminating at Fire
Station No. 1 on Belden Street. She explained that the 8.5 -mile walk is sponsored by the Corpus
Christi Downtown Management District and downtown merchants. Mrs. Black then introduced Mr.
Greg Salvo, who described the event. He pointed out that there are areas of downtown that are not
well known by the majority of citizens, and this event is designed to better familiarize them. Over
60 historical landmarks in the Chaparral/Mesquite/Upper and Lower Broadway area have been
identified and will be pointed out during the walk and thereafter.
Council Member Melody Cooper discussed the "Paint Out the Violence" event, which was
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Regular Council Meeting
October 29, 1996
Page 2
held October 26, 1996. She introduced Dr. Rich Hammonds, Principal of the Student Learning and
Guidance Center; Sgt. Charles Tryon, C.C.P.D.; and Mr. Michael Doddridge, of the Home Depot.
Mrs. Cooper said over 100 volunteers assisted in painting out graffiti at 11 sites. She also thanked
Whataburger Inc. for donating t -shirts for the event.
* * * * * * * * * * * * *
Mayor Rhodes referred to the Board and Committee appointments on the day's agenda, and
the following appointments were made:
Building Code Board of Appeals
Bill Braselton
Corpus Christi Minority Business Opportunity Steering Committee
Benedicto Ramos (Reappointed)
Abey Flores (Reappointed)
Adelfino Palacios
Lino Vera
Art Maldonado
B. David Royal
Mary Helen Salazar
Steven Gomez
Diana Mendez
Guadalupe Gomez
John DeLuna
Linda Roehl
Mayor Rhodes opened discussion on Item 4, water rate ordinance. She explained that some
minor changes were made and the Council would be voting on the amendments (Item 4.a.), but they
would not vote on the second reading of the ordinance until November 12, 1996 (Item 4.b.). City
Manager Hennings said the motion to amend corrects some erroneous numbers in the ordinance.
Responding to Council Member McNichols, Mr. Hennings said the proposed ordinance
"passes through" the cost of raw water. The remainder of the water rate is reduced to offset the raw
water cost "passed through," so that the total effect is neutral. Dr. McNichols pointed out that
commercial water rates were not being reduced per se; rather, the raw water component was being
broken out from the treatment and distribution costs. Similar adjustments are being made to all rate
classes.
Mayor Rhodes called for comments from the audience on Item 4.a., and there were none.
City Secretary Chapa polled the Council for their votes as follows:
4.a. M96-333
Motion amending by substitution the ordinance amending section 55-50 of the Code of
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Regular Council Meeting
October 29, 1996
Page 3
Ordinances, City of Corpus Christi, regarding correction of revised water rates.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper,
Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
Mr. Hennings referred to visual examples of utility bills to illustrate the pass-through
approach. The first example was the bill of a single-family residential customer who uses 12,000
gallons of water a month. He noted that the example showed charges for gas use as well, which
already incorporates the pass-through approach. The gas cost is broken down into two parts: gas
basic service and fuel cost. Mr. Hennings said if the pass-through approach is adopted for water
usage, it will be divided into two parts as well: water basic service and cost of raw water.
Mr. Hennings continued that if approved, the ordinance would take effect January 1, 1997,
and the bills that are distributed beginning in February would add one line showing the break down
for raw water costs; however, the total monthly charge for the same amount of water consumption
would remain the same. He referred to the customer bill example to discuss the incremental charges
that are currently in effect, as well as the incremental charges and the break down for raw water costs
using the pass through.
Council Member Martin asked if the cost of raw water of 25¢ per 1,000 gallons indicated on
the example was the actual cost that would be charged. He said there would be a different charge
for inside city limits (ICL) customers than for outside city limits (OCL) customers if the cash utility
system is utilized. Mr. Hennings explained that in order to calculate the cost of raw water beginning
in January 1997, the actual costs of raw water for the month of November 1996 will be used; he said
the 25¢ per 1,000 gallons is an estimation, and if the actual cost is different, the ordinance will have
to be amended accordingly.
Mr. Martin asked if the ordinance could be worded to indicate that the charge would be the
rates currently in effect less the actual cost of water. Mr. Hennings agreed that that would be a better
approach and the ordinance would be so worded. Mr. Martin then asked if the Council would review
the approach used to determine the cost of raw water; Mr. Hennings said they would.
Responding to a question from Council Member Heldenfels, Mr. Hennings said there were
various reasons why the pass-through approach was being recommended, including some rate design
considerations. Mr. Heldenfels said he thought that after the 6% utility rate cap was implemented
and a proposed exemption to that cap was defeated by the voters, an agreement had been proposed
between Council Member Martin and Mr. J.E. O'Brien that they would not challenge the pass-
through of gas costs due to its volatility. He also objected to attempts at trying to equate gas and
water. City Attorney Bray explained that the rationale for passing through water costs was not based
on whether or not the gas pass-through was challenged. He said staff believes the Charter provision
has been construed from the outset to allow pass-throughs, and there is not any basis within the
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Regular Council Meeting
October 29, 1996
Page 4
Charter amendment itself to distinguish between gas and water.
Mr. Heldenfels said that during the Charter amendment election on January 19, 1991, there
was a proposed Charter amendment setting the 6% utility rate cap, which was approved by the
voters; and another proposed amendment to exempt pass-through costs, which was not approved.
Mr. Bray pointed out that the alternative proposal did not address pass-throughs alone but also
addressed federal mandates and debt service. Mr. Heldenfels replied that he thought the ordinance
was invalid.
Council Member John Longoria asked if changes to the block rate structure for water costs
would change customers' water bills, and Mr. Hennings said there were several separate issues the
Council needed to consider: the pass-through approach for raw water costs; the increasing block rate
for single-family residential customers; and the decreasing block rate structure for industries.
Mr. Hennings added that the basic approach to rate design is that a rate is established to
generate a set amount of revenue, and a certain amount is charged to each customer in the class.
When the structure is changed, some customers within each rate class would pay more and others
would pay less; it is revenue neutral. He said the cost of service study update showed that the single-
family residential class was paying more than the cost of the water, so the Council could conceivably
reduce the rates for the class as a whole to place the revenues back in line with the actual cost --that
does not mean that any particular customer would receive an increase or a decrease if the structure
was changed from an increasing block rate to a flat rate or some other approach.
Mr. Longoria asked if changes to customers' water bills would occur if the Council votes to
exercise the Garwood option. Mr. Hennings replied that it depends on how the Council exercises
the option: if the option is exercised outright and the city pays the $15 million purchase price right
away, that would be a current cost; but if the option is exercised conditionally, which he said is
probably the better approach, the city would not make any payments other than option payments
until the permit is granted, which could take a year or more.
Council Member Best said he had been told that the 6% rate cap is probably unconstitutional
but had never been challenged by the city, and Mr. Hennings replied that staff sent the Council
members the bond counsel's opinion to that effect. Dr. Best then asked if there was any other way
for the city to finance the pipeline (which he favors) other than the proposals made by staff. Mr.
Hennings said he did not believe there was any other way to do so without some significant delay
in the project, such as Charter revisions.
Dr. Best then asked about possible legal challenges. Mr. Hennings said he and other city
staff met yesterday with several bond attorneys, and they were all satisfied that the proposed
financing mechanism is legal and would be upheld if it is challenged in court. Mr. Bray said it is
possible for the issuer of the bonds, which in this case would be the Nueces River Authority, to file
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Regular Council Meeting
October 29, 1996
Page 5
a declaratory judgement lawsuit to declare the proposed bonds and the contracts which support the
bonds to be valid, and to have a judge address those issues. Mr. Hennings added that he expects the
financing proposal to be legally challenged and that a court will need to rule on it.
Mr. Martin said a committee had been actively discussing alternative financing of the
pipeline, and they since have stopped once the pass-through approach was designed. He said there
were other ways to finance the project that would not cause any delays --one such approach would
be to eliminate declining block rates for industries, which would also not affect the 6% cap since the
industries are located outside the city limits. He added that he was not suggesting that that approach
be adopted.
Upon verification by Mr. Hennings, Mr. Martin said that under the water pass-through
proposal, customers would first see a change in methodology on their utility bill beginning January
1, 1997 before they would see any change in the cost for water. He then said that to the extent staff
is maintaining that only the cost of service portion of water is subject to the 6% cap, staff is in fact
lowering the cost of service portion by an amount that can never be regained, no matter what
happens with the validation suit. He suggested that Mr. Hennings and Mr. Bray consider only
passing through the cost of new water.
Mr. Hennings again referred to the examples of utility bills to discuss what a water bill would
be for a single-family residential customer using 12,000 gallons of water per month once the costs
of the Texana and Garwood pipelines are included in about five years. The example showed an
increase in the cost of raw water from 25¢ per 1,000 gallons today to 75.07¢ at that time, with a
resulting increase in the total water bill from $24.33 today to $30.34 in the future (a 24% increase).
He pointed out that the cost of treatment and distribution would remain the same ($21.33).
The next example Mr. Hennings used was a large OCL refinery using almost 194 million
gallons of water per month. He said that customer's current bill of $216,460 per month would
increase to $313,567 once the cost of the pipelines are included (a 44% increase). The City Manager
noted that 22% of the industrial customer's total usage is raw water, while only 12% of the single-
family ICL customer's usage is attributable to raw water. Mr. Hennings then described the
decreasing block rate structure for the example of the industrial customer. As with the ICL
customer, the total monthly charge for the industrial customer will not change as a result of adopting
a raw water pass-through approach.
A brief discussion ensued about the impact of possibly eliminating the last "block" in the
declining block rate structure. Mr. Hennings pointed out that there were some uncertainties relating
to that idea. He said if it did occur, the city would have to have written commitments from the large
water users indicating that the anticipated increase in their cost is fair and reasonable from their
perspective and does not place them in an uncompetitive position. Mayor Rhodes asked if the large
industrial customers had agreed to the pass-through approach, and Mr. Hennings said they had and
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Regular Council Meeting
October 29, 1996
Page 6
he would ensure that their support was verified in writing.
Dr. McNichols said the average residential customer uses about 6,000 gallons of water per
month, which means their water bill, following the inclusion of costs for Texana and Garwood,
would only increase $3 per month over current costs. He reiterated that the amount of customers'
bills in January would remain the same as they are now (for the same consumption) if the pass-
through approach is adopted --the difference would be in showing the break out of the raw water cost.
Mr. Hennings concluded by saying that staff recommended that the vote on Item 4.b. be
postponed until November 12, 1996.
4.b. POSTPONED
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on Item 5, water transmission facilities contract.
Mr. Hennings said staff was prepared to discuss the key issues of the proposed contract, but
the vote would also be postponed until November 12. He said the agreement contained in the agenda
materials was still in draft form and staff reviewed it yesterday with all the participants in the project.
He said they expect to receive the final agreement next week.
Mr. Hennings then referred to Article II of the proposal concerning the acquisition and
construction of the project. He said the contract would provide that the Nueces River Authority
(NRA) would acquire the right-of-way and build the pipeline to Lake Texana, while the Port of
Corpus Christi Authority would be the project manager. He noted that the agreement calls for the
city approving any acquisition of property, as well as approving the engineering contract, plans and
specifications, and bid documents; such approval would be made by the City Manager.
Mr. Carl Crull, Assistant City Manager for Public Works and Utilities, explained that the Port
of Corpus Christi has entered into a letter agreement with HDR Engineering, pending finalization
of the full contract. He said sub -consultants have been selected for the various components of the
project: the three pipeline segments are being designed by Urban Engineering, Naismith Engineering
and Govind & Associates; the structural work and the site civil work related to the pump stations are
being designed by Goldston Engineering. The environmental permitting work is being conducted
by Shiner, Moseley & Associates, and Koch Pipeline Group is acquiring the right-of-way. He said
several actions will be occurring concurrently due to the compressed time frame of the project.
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Regular Council Meeting
October 29, 1996
Page 7
Council Member Best asked if Coastal Refinery had made an offer concerning their right-of-
way. Mr. Crull explained that in an earlier phase of this project, there had been discussions about
utilizing one of Koch Pipeline's right-of-ways, but he was not aware of any discussion concerning
Coastal. He noted that the problem with using either company's right-of-ways is that most of the
easements that are granted are for a specific number of pipelines and specific products. To expand
that easement right, permission would again have to be sought from the property owners and
environmental concerns not previously addressed with some older easements would have to be dealt
with. It was concluded that the city should buy its own right of way.
Responding to questions from Council Member John Longoria, Mr. Hennings said the
Council would be presented with the final contract for their approval. He added that Mr. Crull has
been working diligently with the Port of Corpus Christi and the engineers on the project, and he has
the authority to continue working with them. Mr. Longoria questioned the wording of Section 2.08,
and Mr. Hennings replied that that was standard language in a contract such as this one. Regarding
Mr. Longoria's question of Section 3.02, Mr. Hennings said a bank will serve as trustee, and the city
will make payments to the bank.
Council Member Heldenfels said he was not comfortable with the proposal of the City
Manager approving acquisitions of property and other items; he said the City Council should make
those approvals. Mr. Heldenfels also questioned Section 3.01, which states that the project will be
financed by "one or more issues" of the Authority's bonds. Mr. Hennings explained that a bond
resolution containing the maximum of $135 million was passed, but he did not think the actual cost
of the project would be that high. He said it was his intention that there will be a very specific cap
on the project. Responding to Mr. Heldenfels' first comment, Mr. Hennings said he planned to bring
any controversial items to the Council, but the intention was to avoid administrative delays wherever
possible.
Mr. Hennings pointed out that in Section 2.07, the agreement would allow the Nueces River
Authority to make minor revisions to the plans and specifications; however, city approval would be
required for major revisions. In addition, the Authority would notify the city when the project has
been substantially completed, and they would deliver a list of all of the property that has been
acquired. At that point, the project would become the property of the city, and the city would be
solely responsible for its operation (Section 2.10).
Responding to a question from Council Member Martin concerning Section 2.10, City
Attorney Bray said there would be no warranties with respect to the project itself; the Nueces River
Authority will assign to the city all of their contracts from the contractor that contained the
warranties.
Mr. Heldenfels asked if the city could obtain a general warranty deed from the Authority, and
Mr. Hennings said staff would review that.
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Regular Council Meeting
October 29, 1996
Page 8
Mr. Hennings said that in Section 3.12 it states that interest earned on the bonds shall be used
to pay debt service on the bonds of capital costs of the project, and any left over would go to the city.
A brief discussion ensued about the question of interest, and Mr. Hennings said staff would
investigate it further. He then referred to Section 4.03, which provides that payments by the city
would be an operating expense of the city utility system, and the city will fix such rates and charges,
including but not limited to a cost -of -water pass-through charge, as will produce revenues at least
equal to expenses of operation and maintenance of the city utility system. He added that no tax
revenues of the city are pledged under the contract.
The City Manager said that in Section 4.07, the summary states that the city "pledges not to
sell its utility systems, or parts thereof, to the extent its ability to comply with this agreement would
be impaired." He said that provision has been included in past revenue bond covenants. Mr.
Hennings said staff would take into consideration the Council's questions, and bring back a final
document for their approval on November 12.
Mr. Martin asked if the bidding approach the Nueces River Authority will use is substantially
similar to what the city would use, and Mr. Hennings said it was, adding that the Authority is subject
to state laws concerning competitive bidding.
5. POSTPONED
Resolution authe.:ze,g the City Manages to execute o.i behalf of the City of Coipns Christi,
Christi's ovate. fro... Lakc Texm.a to -the Corpus Ch.;sti-urea.
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on Item 6, proposed financing and construction of the
Lavaca-Navidad River Authority (LNRA) pipeline project. She noted that there was an amendment
to Item 6.b., which was distributed to the Council.
Council Member Martin said it was extremely critical that the city have the exact same types
of authorities relative to the LNRA contract as the NRA contract. Mr. Crull replied that many of
those issues were addressed in the original water conveyance contract with the LNRA, such as the
city's approval of the plans and specifications, awards, bid documents, etc.
Mr. Crull explained that this action is to allow the LNRA to proceed with their portion of the
project, which is the initial pump station and the portion of the pipeline which lies on the Bureau of
Reclamation property, which is controlled by the LNRA. He said the contract the city entered into
in December 1993 provides for the LNRA to build this portion of the project upon request by the
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Regular Council Meeting
October 29, 1996
Page 9
city. It also provides for the city to reimburse LNRA up to $450,000 for expenses that are incurred
prior to delivery of bond proceeds for their portion of the project.
Mr. Martin asked if the city would be reimbursed with interest on these funds and on the
previously approved funds. Mr. Crull said staff would review that.
Mayor Rhodes made a motion to amend Item 6.b. by adding the following language to the
motion: "for the preparation of plans and specifications and performance of other project -related
engineering tasks; providing the expenditure does not exceed $450,000." Council Member Best
seconded the motion, and it passed unanimously.
Mayor Rhodes called for comments from the audience on Items 6.a. and 6.b.
Mr. John Hartley asked if expenses incurred by LNRA above and beyond --but related to --the
expense of the pipeline's construction can be charged to the city. He also asked if the reinstatement
of the Choke Canyon debt payments after five years will have an effect on customers' water bills.
He said he could not believe that there were no other viable alternative water supplies than the one
being recommended. He added that when the contract was signed, it was not called a utility and
today it is being referred to as a utility.
Responding to Mr. Hartley's questions, Mr. Crull said this proposal allows the LNRA to
proceed with the engineering and permitting actions, and at a later date they will be issuing bonds
for their portion of the project, and that debt service will be added to the city's monthly bill that it
pays to LNRA. Mr. Hennings noted that legislation recently passed that allows for deferment of the
Choke Canyon debt for five years. Mayor Rhodes asked how that payment will be reflected after
the five years have passed. Mr. Hennings said that under today's scenario, it would not affect rates
at all. Mr. Martin added that, in fact, it has the effect of foregoing what would have been an
increase.
Mr. J.E. O'Brien, 4130 Pompano, said he understood that this action was a loan to be repaid
from bond proceeds, and he asked if it was legal for the city to loan money. He said the City Charter
exempts from the referendum procedures appropriations already made, and he asked for a definition
of the term "appropriations already made."
In reply to Mr. O'Brien's questions, Mr. Bray stated that the city can loan money for public
purposes just as it can spend money for public purposes. He said it seemed very clear that
"appropriations already made" were not included in the initiative and referendum provision, and this
action was an appropriation already made.
Mr. Leon Perez, 904 Buford, asked what the Nueces River Authority and the Port of Corpus
Christi were.
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Regular Council Meeting
October 29, 1996
Page 10
Mr. Lewis Lovelace, 1549 Casa Grande, said the Council acts for special interests and always
goes against the will of the majority of the voters.
Mr. Phil Rosenstein said he is against any money being spent until the issue of declining
block rates for industries is settled.
City Secretary Chapa polled the Council for their votes as follows:
6.a. ORDINANCE NO. 022733
Ordinance appropriating $450,000 from the Unappropriated Fund Balance of the Combined
Utility Fund to use as an advance on preliminary costs of the Lavaca-Navidad River
Authority portion of the Lake Texana Pipeline Project, expected to be reimbursed from
bonds issued by the Lavaca Navidad River Authority.
An emergency was declared and the foregoing ordinance passed by the following vote:
Rhodes, Best, Black, Cooper, B. Longoria, Martin, and McNichols voting "Aye"; Heldenfels
and J. Longoria voting "No."
6.b. M96-334
Motion formally requesting the Lavaca-Navidad River Authority (LNRA) to proceed with
the LNRA project portion of the Lake Texana - Corpus Christi Pipeline in accordance with
the provisions of Section 2.04 of the Water Delivery and Conveyance Contract between the
Lavaca-Navidad River Authority and City of Corpus Christi for the preparation of plans and
specifications and performance of other project -related engineering tasks; providing the
expenditure does not exceed $450,000.
The foregoing motion passed, as amended, by the following vote: Rhodes, Best, Black,
Cooper, B. Longoria, Martin, and McNichols voting "Aye"; Heldenfels and J. Longoria
voting "No."
*************
Mayor Rhodes called for a five-minute recess.
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on Item 7, proposed FY 1996-97 capital budget.
Ms. Grace McNett, Capital Budget Officer, said the proposed capital budget primarily
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Regular Council Meeting
October 29, 1996
Page 11
reflects drainage, wastewater, and water improvements, as well as other significant needs. She
referred to a pie chart illustrating the percentage of capital improvements by category, and she noted
that the water supply (23.9%) was distinguished from general water projects (21.8%). Ms. McNett
said another pie chart demonstrated the percentage of capital improvements by funding source, with
revenue bonds constituting 78% of the funding.
Ms. McNett said the capital budget also focuses on proceeding with the Gateway Project and
the implementation of park and recreation improvements funded by the Community Development
Block Grant (CDBG) program. In addition, CDBG funds will be used to eliminate architectural
barriers at public facilities, in response to the Americans with Disabilities Act. She said there are
a number of airport master plan projects, primarily a major reconstruction of the terminal facility,
as well as the repair of the Health Department's roof with reprogrammed CDBG funds.
The Capital Budget Officer went on to say that of particular note is a restructuring of the
utilities capital improvement program (CIP) as a result of the drought. A number of projects have
been shifted to later years in order to enhance the Combined Utilities Fund's financing capacity to
undertake the water supply projects. The effect of the drought includes deferring 16 drainage
projects totaling approximately $13 million; 15 wastewater projects totaling $74 million; and 10
water projects totaling about $38 million.
She then referred to a graph which illustrates sustained progress in those projects which are
supported by revenue-producing activities, while projects that rely on taxes (such as streets, parks
and recreation, public health and safety, and public facilities) have fallen behind. She said that
indicates a need to begin planning for a future bond election.
Council Member Martin asked if the major change in the capital budget is that the water
pipeline is no longer being treated as a capital project. Ms. McNett said it is not being included in
the bond sale because of the NRA's financing proposal. Mr. Martin said he did not want to have the
city's largest project in its history not reflected as one of its capital projects. Ms. McNett said staff
would review that.
Mr. Martin then asked about financial information provided to the Council which showed
a $1 million gain in the debt service for utilities. Mr. Hennings said staff would respond to his
question.
Council Member Heldenfels reiterated his concern that involving the Port of Corpus Christi
and the Nueces River Authority in the construction of the Texana pipeline was a violation of the
city's contract with LNRA. Mr. Bray replied that the LNRA contract does not attempt to govem the
city on how it carries out its responsibilities with regard to the pipeline. In addition, LNRA officials
are cooperating with the city on their portion of the pipeline, and they have attended meetings
regarding financing and engineering aspects of the project.
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Regular Council Meeting
October 29, 1996
Page 12
Mayor Rhodes called for comments from the audience, and there were none. City Secretary
Chapa polled the Council for their votes as follows:
7. FIRST READING ORDINANCE
Approving the FY 1996-97 Capital Budget in the amount of $66,908,000.
The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black,
Cooper, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Heldenfels voting
"No."
* * * * * * * * * * * * *
Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and
ordinances from previous meetings on Items 8 through 15, and Council Members requested that Item
9 be withheld for discussion.
City Secretary Chapa polled the Council for their votes and the following were passed:
8. M96-335
Motion approving a supply agreement with Mueller Co., San Antonio, TX for approximately
106 fire hydrants ranging in size from 3' - 5 1/2', in accordance with Bid Invitation No. BI -
0018 -97, on the basis of low bid for an estimated annual expenditure of $58,064.02. 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 in 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."
10. M96-337
Motion authorizing the City Manager to execute an agreement with Resource Management
International for assistance concerning water rate design and miscellaneous utility system
issues in an amount not to exceed $15,000.
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 29, 1996
Page 13
11.a. M96-338
Motion authorizing the City Manager, or his designee to execute an agreement with Corpus
Christi Independent School District (CCISD)/ Casa Linda Elementary School to provide
$20,000 from the FY 1995 CDBG Program to construct a play area cover at Casa Linda
Elementary School Playground.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper,
Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
11.b. M96-339
Motion authorizing the City Manager, or his designee to execute an agreement with Corpus
Christi Independent School District (CCISD)/ Coles Elementary School to provide $75,000
from the FY95 CDBG Program to install an air-conditioning system at Coles Elementary
School Gymnasium.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper,
Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
12. RESOLUTION NO. 022734
Resolution authorizing the resale of sixty-two properties shown on the attached and
incorporated Exhibit A for a minimum opening bid amount equal to 20% of the most recent
appraised value of each.
The foregoing resolution passed by the following vote: Rhodes, Best, Black, Cooper,
Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
13.a. M96-340
Motion authorizing the City Manager or his designee to accept a grant in the amount of
$750,268 and to execute contract change No. 4 to Contract No. 7460005741-97 with the
Texas Department of Health for public health services, including immunization and
laboratory 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."
Minutes
Regular Council Meeting
October 29, 1996
Page 14
13.b. ORDINANCE NO. 022735
Ordinance appropriating $61,296 from the Texas Department of Health in the No. 162
Federal/State Grants Fund for public health services, including immunization and laboratory
services during the period September 1, 1996 to August 31, 1997, (with the remainder of
$688,972 paid directly by the State for in kind services) adding $61,296 to 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.a. ORDINANCE NO. 022736
Ordinance authorizing the City Manager, or his designee, to execute an Interlocal Agreement
with the Coastal Bend Council of Governments that will fund the purchase of a compost
screen for the City's centralized composting program.
An emergency was declared and the foregoing ordinance passed by the following vote:
Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols
voting "Aye."
14.b. ORDINANCE NO. 022737
Ordinance adding $130,000 from the Coastal Bend Council of Governments, as a pass-
through grant from the Texas Natural Resource Conservation Commission, to the
FederalState Grants Fund No. 162 and appropriating $130,000 from the Federal/State Grants
Fund No. 162 to purchase a compost screen for the City's centralized composting program.
An emergency was declared and the foregoing ordinance passed by the following vote:
Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols
voting "Aye."
15. ORDINANCE NO. 022738
Ordinance authorizing the City Manager, or his designee, to execute a six-month lease, with
the option to extend for one additional six-month period, with Lori Willson dba Merchant
Ivory Trading Company for 60 square feet of rental space in the airport terminal at the
Corpus Christi International Airport to provide sales of flowers and flower arrangements in
consideration of payment of the greater of 10% of gross sales or $175.00 a month.
Minutes
Regular Council Meeting
October 29, 1996
Page 15
An emergency was declared and the foregoing ordinance passed by the following vote:
Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols
voting "Aye."
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on Item 9, water well lease agreement.
Responding to Council Member Black, Mr. Crull said the city negotiated the lease in
question in 1984, but staff was unable to secure an easement across the adjacent property to supply
power to the well; in addition, in 1984 the drought broke and the well was subsequently not needed.
He said this action would reinstate the lease for a five-year term.
Mrs. Black asked about the value of the well, and Mr. Crull replied that it is rated to produce
almost one million gallons per day, and it is comparable to the other wells in the vicinity.
Council Member Heldenfels asked if the well was already drilled when the city entered into
the 1984 agreement, and Mr. Crull said it was. Responding to another question from Mr. Heldenfels,
Mr. Crull said he thought the well was located in the Gulf Coast Aquifer, which is insulated from
Wesley Seale Dam by many layers of clays.
Mayor Rhodes called for comments from the audience, and there were none. City Secretary
Chapa polled the Council for their votes as follows:
9. M96-336
Motion authorizing the City Manager or his designee to execute a water well lease agreement
with John Lloyd Bluntzer, Carl F. Bluntzer, Evelyn P. Bluntzer, and Diane P. Peters trustees
under the Will of Fannie B Nason. The City will pay $1,500 per month plus an additional
$.15 per thousand gallons on water volume over 10 million gallons for an initial term of five
years and twenty days, with an option to extend for an additional five years.
The foregoing motion passed by the following vote: Rhodes, Best, Cooper, Heldenfels, B.
Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Black voting "No."
* * * * * * * * * * * * *
Mayor Rhodes called for the City Manager's report. Mr. Hennings pointed out that with the
conclusion of Daylight Savings Time on October 27, 1996, there is a change in the Water
Conservation and Drought Contingency Plan: trees, shrubbery, plants, gardens, vegetables, and
flowers can be watered at any time during the day or night on an odd -even schedule based on
Minutes
Regular Council Meeting
October 29, 1996
Page 16
address. The hour restrictions are no longer in effect during the cooler months of November through
April since evaporative losses are minimal from this type of watering. The restrictions pertaining
to lawn watering remain in effect: it is allowed on a 14 -day cycle based on address and is prohibited
between the hours of 10 a.m. to 6 p.m.
Mr. Hennings said there would not be a Council meeting next week (November 5th) since
it was the first Tuesday of the month. Items scheduled for the November 12th meeting include: the
contract with the Nueces River Authority; the final reading on the raw water pass-through ordinance;
a report on the factory outlet center; six zoning cases; and a discussion of the Garwood Irrigation
Company option.
Mayor Rhodes called for Council concerns and reports.
Council Member McNichols asked if the Council could receive the background material on
the Garwood option prior to the November 12th meeting to allow them ample time to study it. He
said it was important that all of the communities which receive water from Corpus Christi adopt the
water conservation measures approved by the Council. He pointed out that the combined reservoir
capacity is decreasing again.
Dr. McNichols also asked about the status of the financial plan to rebuild the General Fund
ending balances. Mr. Hennings replied that he intended to bring that issue back to the Council. He
said he felt that the Council needed to adopt a financial plan to take to the bond rating agencies, and
deal with the policy issues as well.
Council Member Martin asked if compliance letters had been sent to the appropriate
communities regarding water conservation measures, and Mr. Hennings said staff would provide a
follow-up report. Mr. Martin also asked about possible restrictions in discussing the Waldron Road
school zone crossing situation in light of a recent claim that was brought against the city. Mr. Bray
said there would probably be a need to discuss some of the litigation aspects in closed session, but
more general discussions could be held. He added that staff would bring that issue back to the
Council.
Mr. Martin then requested clarification of a recent memorandum prepared by staff concerning
the Texas Municipal Retirement System. He also asked about the status of the city's audit. Mr.
Hennings said the audit was several weeks away; however, representatives of the rating agencies will
be attending the Texas Municipal League state convention in Corpus Christi in November. Mr.
Martin asked if the Council should meet briefly next week since the November 12th meeting
contained many important issues. Mr. Hennings pointed out that the Garwood issue was not an
action item for that date. He added that Council meetings scheduled for December were December
10th and December 17th. Mr. Martin asked if a meeting should be scheduled on December 3rd, and
Mayor Rhodes agreed that that was an option.
Minutes
Regular Council Meeting
October 29, 1996
Page 17
Council Member Best requested that the developers of the Frost Brothers Building and the
factory outlet center both appear to update the Council on the status of those projects.
Council Member John Longoria asked if there would be more discussion by the Council of
the Kostoryz street project, and Mr. Hennings said there would be. Mr. Longoria then asked about
rehabilitation of the Campbellton wells. Mr. Hennings said that was a complex issue and several
factors would determine when that issue would be dealt with. Mr. Longoria asked about a specific
minority participation project. Mr. Hennings replied that the minority participation requirement on
that project was not waived but reduced from 15% to 5% based on the assessment of the nature of
the contract and the availability of subcontractors for the work. He said he would provide a full
report. Mr. Longoria then referred to a list of City Council action requests, stating that they needed
to be responded to in a more expeditious manner.
* * * * * * * * * * * * *
Mayor Rhodes called for petitions from the audience.
Ms. Aima Werner, 810 Oak Park, discussed the organization RID (Remove Intoxicated
Drivers) and a specific accident involving an intoxicated driver. She expressed concern about
corruption in Corpus Christi, pointing out that the city's name translates to "the Body of Christ."
There being no further business to come before the Council, Mayor Rhodes declared the
Council meeting adjourned at 4:45 p.m. on October 29, 1996.
* * * * * * * * * * * * *