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HomeMy WebLinkAboutMinutes City Council - 11/12/1996I 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 November 12, 1996, which were approved by the City Council on November 19, 1996. WITNESSETH MY HAND AND SEAL, this 19th day of November, 1996 Armando Chapa City Secretary SEAL 400030 MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting November 12, 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 Father Richard Speer, St. Andrew's Episcopal Church, following which the Pledge of Allegiance to the flag of the United States was led by Council Member John 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 called for approval of the minutes of the regular Council meeting of October 29, 1996, and there being no corrections, she proclaimed them approved as presented. Council Member Betty Jean Longoria introduced Mr. Victor Hernandez and his wife, Judge Aurora Hernandez, who came to Corpus Christi for the Texas Municipal League (TML) annual conference that week. Mr. Hernandez is a Council member in Lubbock and is President of the Association of Hispanic Municipal Officials (AHMO), and a TML board member. Mayor Rhodes then announced that the City of Corpus Christi had received the "Certificate of Achievement for Excellence in Financial Reporting" for the fiscal year ending July 31, 1995. Mr. Jorge Garza, Assistant City Manager for Administrative Services, thanked the Council and the City Manager for their support, and he noted that this was the 13th year that the city had received this award. Mr. Garza also recognized the city's former finance director, Ms. Rosie Vela, and the current members of the Finance Department staff responsible for the financial report: Ann Dorn, Audre Debler, Chris Commons, Cindy O'Brien, David Boatright, Deborah Bali, Irma Perez, Janie Baysinger, Karen Petty, Mike Harty, Olga Plomarity, and Rich Holman. Minutes Regular Council Meeting November 12, 1996 Page 2 * * * * * * * * * * * * * Mayor Rhodes referred to the Board and Committee appointments on the day's agenda, and the following appointments were made: Building Standards Board Patrick Veteto Citizens Advisory Health Board Helen Bechtel Blanca Rosa Garcia Melinda Gonzales Corpus Christi Minority Business Opportunity Committee Beverly Winters Transportation Advisory Committee David Bradley * * * * * * * * * * * * * Mayor Rhodes deviated from the day's agenda and opened discussion on Item 6, FY 1996-97 capital budget. City Manager Hennings noted that during the October 29, 1996 meeting, staff presented the capital budget, and during the discussion the Council suggested that the Lake Texana pipeline project should be shown differently in the capital budget. Consequently, staff proposed a motion (Item 6.a.) to add the pipeline budget into the capital budget. Council Member McNichols asked how the wastewater and drainage projects would be affected by the impact of the drought on the capital improvement program (CIP) and the budget. Mr. Hennings said the bulk of the capital improvement projects are water and wastewater projects; he noted that the current capital budget contains $19 million for wastewater improvements, with $43 million allocated next year. He said, however, that drainage projects had a "bare bones" budget: $2.9 million this year and $1.8 million next year. Mr. Hennings added that due to the necessity of completing some drought -related projects, other needed projects were having to be postponed. 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 November 12, 1996 Page 3 6.a. M96-343 Motion to amend. prior to second reading, the proposed FY 1996-97 Capital Budget to include the Lake Texana Pipeline Project and increase the budget from $66,908,000 to $201,908,000. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Heldenfels voting "No." 6.b. ORDINANCE NO, 022742 Approving the FY 1996-97 Capital Budget in the amount of $201,908,000. The foregoing ordinance passed on second reading, as amended. by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Heldenfels voting "No." * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 3, "pass-through" costs of water supply ordinance. City Manager Hennings explained that the proposed ordinance basically splits customers' water bills into two parts: one part is the cost of raw water, and the other part is the cost of the remainder of the service. During the discussion at the previous Council meeting, the Council had asked staff to determine the feasibility of delegating to the City Manager the authority to make final adjustments to the ordinance in January 1997 in order to make the final rate schedule revenue - neutral. Mr. Hennings said that upon review, City Attorney Bray concluded that rate -making is a Council prerogative that cannot be delegated; in addition, the ordinance was further strengthened and staff was proposing an amended ordinance prior to second reading. Mr. Hennings said that if the proposed ordinance is adopted, it will enable the sale of the bonds for construction of the pipeline to Lake Texana. He said while staff would prefer to wait until the actual cost data for November is available, the ordinance needs to be adopted now so that the bond buyers will know what mechanism the city will use to collect the revenues to pay back the bonds. He pointed out that the rate schedule will be refined in January once the actual cost of raw water is determined. Mr. Hennings added that the ordinance is structured so as to preserve the Council's ability to examine alternatives for the use of the Choke Canyon reserve account, as well as how to make use of the deferred payments on the Choke Canyon debt. He noted that those two issues are scheduled to be discussed on December 17, 1996. Minutes Regular Council Meeting November 12, 1996 Page 4 Council Member Heldenfels asked if the Council could approve an ordinance such as this which he said had been greatly modified. City Attorney Bray replied that the proposed ordinance was not substantively modified; rather, it had been "fine tuned" to give more clear parameters to the City Manager Council Member Martin asked if it was certain that the ordinance would have to be amended in January once the cost data has been calculated, and Mr. Hennings said that would probably be the case. Mr. Martin asked if another amendment would be needed to change the block rate structure, and Mr. Hennings said it would. Mr. Martin then asked about the following statement in the proposed ordinance pertaining to the city policy for raw water cost adjustments, in which the Assistant City Manager for Public Works and Utilities shall (among other things): "Provide an adjustment to costs of raw water for those classes of customers who have previously contributed to the Choke Canyon Debt Reserve Fund, when monies from the Choke Canyon Debt Reserve Fund are used to offset the costs of raw water." Responding to Mr. Martin, Mr. Hennings said there were two ways to carry out the original plan --to simply defer payments from the Choke Canyon Reserve Fund for five years, and then resume the payments after five years; or to continue making payments from the reserve. A brief discussion ensued. Mr. Martin made a motion to delete the above statement, which is Sec. 55-50(b)(6); the motion was seconded by Dr. McNichols, and it passed unanimously. Mayor Rhodes called for comments from the audience. Mr. J.E. O'Brien, 4130 Pompano, said he understood that the proposed ordinance would not change customers' rates but was a change in policy as to how water bills will be paid. He referred to proposed charges, saying they did not include the anticipated 6% annual rate increase. Mr. O'Brien also referred to the rate issues in the 1991 Charter election, adding that the proposal being considered today goes against the will of the people. He also asked whether the city's bond counsel had questions about the validity of the pass-through proposal, and he said he strongly opposed it. In response to Mr. O'Brien, Mayor Rhodes asked if the city's bond counsel had any questions about the proposal, and Mr. Bray said they did not. Council Member John Longoria asked if the city had a utilities payment program for people on fixed incomes, and Mr. Hennings said it did not but staff would review it. Dr. McNichols asked if the proposed Charter amendment in 1991 concerned exempting only Minutes Regular Council Meeting November 12, 1996 Page 5 pass-through costs or if it exempted other items as well. Mr. Bray replied that it exempted three things: debt service, federal and state mandates, and pass-through costs. Responding to a question from Mr. Heldenfels, Mr. Bray said state law requires an unqualified pledge of system revenues, so there is no need to mention the cost of water pass-through in the contract with the Nueces River Authority for the pipeline project. City Secretary Chapa polled the Council for their votes as follows: 3.a. M96-341 Motion amending by substitution, the 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 motion passed, as amended, by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, and McNichols voting "Aye"; Heldenfels and Martin voting "No." 3.b. ORDINANCE NO. 022741 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 second reading, as amended, by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, and McNichols voting "Aye"; Heldenfels and Martin voting "No." * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 4, Nueces River Authority water pipeline contract. City Manager Hennings explained that in 1992 and 1993 the previous City Council began the effort to acquire additional water supply, and in December 1993 the city entered into a Water Delivery and Conveyance contract with the Lavaca-Navidad River Authority (LNRA). On August 13, 1996, the Council adopted a resolution approving in concept a structure for the development of a system to deliver Lake Texana water for use in the Corpus Christi area. The structure involved the Nueces River Authority (NRA), which encompasses much of South Texas, including the Corpus Christi service area. The City of Corpus Christi and the NRA worked together recently on Minutes Regular Council Meeting November 12, 1996 Page 6 constructing the Choke Canyon project. Mr. Hennings went on to say that on September 10, 1996, the Council approved advanced funding to the NRA for engineering work, right-of-way acquisition and legal services associated with the Lake Texana pipeline. And on October 29, 1996, the Council authorized advanced funding to the LNRA for "critical -path" aspects of the project. Mr. Hennings referred to the proposed contract with the Nueces River Authority, noting that the current project budget totals $125,195,000. Mr. Frank Brogan, Director of Engineering Services for the Port of Corpus Christi Authority, discussed a status report of the pipeline project that was given to the Port Commission that morning. He explained that the pipeline project has been divided into three segments, which will be designed by Urban Engineering, Naismith Engineering, and Govind & Associates. In addition, Goldston Engineering is assisting with the civil and structural design on the pump stations; Shiner, Moseley & Associates will assist in obtaining the environmental permits; and Fugro will assist in geotechnical aspects of the project. Mr. Brogan said the right-of-way acquisition was being headed up by the Port's legal counsel, and design of the pipeline is well underway, which he discussed in some detail. He also described other elements relating to permitting, pump stations, and financing and construction. Council Member Heldenfels asked if the initial bond amount for the pipeline project will be $135 million. City Attorney Bray replied that the proposed budget for the pipeline is $125,195,000. Mr. Hennings added that the City Council would have to approve bonds which exceed $135 million. Mr. Heldenfels also said he did not agree that the three different types of pipe being proposed are of equal quality. Council Member Martin asked if there was an agreement to utilize right-of-way (ROW) owned by Koch Refinery. Mr. Brogan said three ROW options were explored: Texas Highway Department ROW, railroad ROW, and petrochemical pipeline ROW. He said the pipeline ROWs were not feasible since they were typically limited to single -pipeline rights. Mr. Martin commented that the Port's effort and cooperation on this project has been very valuable. Mr. Martin then asked how the underwriter was selected. Assistant City Manager Garza explained that it was a coordinated effort among city staff, the financial advisors for both the Nueces River Authority and the city, and NRA staff. Mr. Martin asked who was negotiating on the city's behalf, and Mr. Garza said it was city staff and the city's financial advisor. Mr. Martin asked if the bond sale for this project in any way weakens the city's credit on its existing bonds or the possible credit on future bonds. Mr. Hennings said he thought that the development of the pass-through approach for the cost of raw water will alleviate the bond rating agencies' concerns about credit on future bonds; more discussion will be held on this issue. He added that they are concentrating on obtaining the best possible interest rate on this bond sale Minutes Regular Council Meeting November 12, 1996 Page 7 because it is so Large. Council Member McNichols stated that the question about what type of pipe to use has been carefully examined by people who are knowledgeable in that field. Mayor Rhodes called for comments from the audience. Mr. J.E. O'Brien said it was his understanding that the Nueces River Authority was, in effect, the "banker" for this project, and the Port Authority was the project manager. He said it seemed as if the city was incapable of performing those tasks, and he questioned if the bonds were being sold by another entity because he said the city's current debt is at an all-time high. Mr. O'Brien said he thought that by approving this contract, the Council was also approving a resolution authorizing the sale of the bonds and the filing of a declaratory judgment action. He said he opposed the contract. Responding to one of Mr. O'Brien's comments about the financing of the pipeline project. Mr. Hennings said the city's financial advisor stated in a letter that "due to the complex nature of this financing, a negotiated sale has more advantages than a competitive sale and which we feel will produce a lower interest rate." Mr. Hennings added that the city has adequate capacity to sell bonds; the reason the NRA was asked to be a partner in the water pipeline project is because it is a regional project. The city's water utilities currently serve seven counties in South Texas and has the authority to serve three more, and the Nueces River Authority is the smallest political subdivision that includes that service area. Mr. John Hartley said he and others were interested in the size of the pipes that will be used to transport the water from Lake Texana. Mr. John Clements, an employee of Reynolds Metals Company, which employs over 850 people, said that Reynolds has taken steps to recycle its water. The company also recognizes the importance of acquiring a long-term water supply for this region, as well as coping with the short- term effects of the drought. He said they encourage the Council to approve this proposal to secure a dependable supply of fresh water. Mr. Neal Trolinger questioned the status of the city's wells, and he asked why there were no provisions in the bond sale or the contract to include the wells. He also asked for more information on these issues on behalf of the Corpus Christi Taxpayers Association, and he suggested that industries fund the pipeline construction and the city's voters could vote to fund a desalination plant. Ms. Carola Serrato, Executive Director for the South Texas Water Authority, said she was also appearing on behalf of Mr. Jim Naismith, Manager of the San Patricio Municipal Utility District. She said those two entities service about 15 surrounding cities. Ms. Serrato then read a letter from Mr. Naismith, in which he emphasized that the pipeline was a regional project and other Minutes Regular Council Meeting November 12, 1996 Page 8 communities were sharing the responsibility of paying for it. Mr. Dick Messbarger, Executive Director of the Kingsville Economic Development Council, said that while the City of Kingsville purchases less than 500,000 gallons through the South Texas Water Authority, it recognizes the importance of access to Corpus Christi's water supply, and it strongly supports the construction of the Texana pipeline. Mr. Dave Cich, Executive Vice President of the Alice Chamber of Commerce, said that a reliable water supply is obviously a high priority, particularly in light of economic development that is occurring in Jim Wells County. Mr. Phil Rosenstein said he doubted whether the pipeline will be completed on schedule. Mr. Hennings said there were seven wells currently in production in the Nueces River and there are plans to renovate several more wells. Responding to Mr. Martin, Mr. Bray said that adoption of the NRA contract approves the resolution authorizing the issuance, sale, and delivery of NRA water supply facilities revenue bonds, as well as the filing of the declaratory judgment action. He said the NRA has determined that due to the threats of litigation that had been made, the legal issues needed to be resolved. Mr. Martin asked if the contract stated how the city will pay the debt service. Mr. Bray said the agreement states that the city pledges its utility system revenues, and it will raise charges sufficient to pay operating and maintenance costs on the system and the city's existing bonds, which would include this agreement and all of the city's other obligations. City Secretary Chapa polled the Council for their votes as follows: 4. RESOLUTION NO. 022740 Resolution authorizing the City Manager to execute on behalf of the City of Corpus Christi, Texas, the "Nueces River Authority - City of Corpus Christi Water Transmission Facilities Contract," which is made part of this resolution for all purposes, for the purpose of financing and constructing a pipeline to transport Corpus Christi's water from Lake Texana to the Corpus Christi area. The foregoing resolution passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, and McNichols voting "Aye"; Heldenfels, J. Longoria, and Martin voting "No." * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 5, Lavaca-Navidad River Authority (LNRA) Minutes Regular Council Meeting November 12, 1996 Page 9 portion of the pipeline project. Mr. Hennings said this item asks the LNRA to proceed with the steps necessary to finance and construct the portion of the project located at Lake Texana--the main pumping station and some of the pipeline. Mayor Rhodes called for comments from the audience. Mr. J.E. O'Brien said that during the past week five citizens had submitted a letter to the Council and the Mayor requesting that they reconsider the advance of $480,000 to LNRA. He said they had not received a response, and he opposed the passage of the proposed motion. City Secretary Chapa polled the Council for their votes as follows: 5. M96-342 Motion formally requesting the Lavaca Navidad River Authority (LNRA) to proceed with the steps necessary to finance and construct the LNRA portion of the Lake Texana-Corpus Christi pipeline to coincide with the schedule for the financing and construction of the Nueces River Authority portion of the project. The foregoing motion passed 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 10 -minute recess. * * * * * * * * * * * * * Mayor Rhodes introduced Item 7, discussion of an agreement with the Garwood Irrigation Company for the option to purchase water rights in the Colorado River. Mr. Hennings explained that in September 1992 the City Council approved an option contract with the Garwood Irrigation Company to purchase up to 35,000 acre-feet of water right. He said along with the Lake Texana water, that would provide the city with 76,000 acre-feet of water per year to supplement its existing water supply. He said the Garwood option agreement expires on January 1, 1997, so a decision on the option needs to be made soon. Mr. Hennings explained that the Garwood Irrigation Company is located on the lower Colorado River near Highway 59. The company owns 168,000 acre-feet of water rights, and most Minutes Regular Council Meeting November 12, 1996 Page 10 of the water that is used for rice farming irrigation involves an interbasin transfer. He said the option contract requires the city to pay $15,750,000 for the purchase of the water rights; in the meantime, the city is paying $25,000 per month for the option. Mr. Hennings said the payments to date for the option, as well as any payments for engineering, permitting and legal activities related to the project, would be credited to the purchase price if the city ultimately purchases the water rights. The City Manager stated that the Garwood project requires a permit from the Texas Natural Resource Conservation Commission (TNRCC), which has already approved the reclassification of the water right from use for irrigation purposes to use for municipal and industrial purposes. However, the permit for the interbasin transfer has yet to be approved by the TNRCC. Mr. Hennings described the two ways the city could exercise the option: as an outright purchase, or in a conditional exercise. Under the outright purchase, the city would pay the purchase price of $15,750,000 less the option payments already made and become the owner of the water rights. At that point, it would be the city's responsibility to obtain the interbasin transfer permit from the TNRCC; and design and construct the pipeline facilities to move the water from the Colorado River to tie in to the Texana pipeline. Under the conditional exercise of the option, the city would give notice to the Garwood Irrigation Company, which would then have the obligation to apply for and obtain the interbasin transfer permit. The city would also be obligated to assist in that process by engaging consultants to help in the preparation of the application. Upon issuance of the permit, the city would be obligated to pay the purchase price. Mr. Hennings noted that there were advantages and disadvantages to each approach. Under the outright purchase, the advantage is that the city immediately becomes the owner of the water rights, and it has control over and is responsible for the permit application. The advantage of the conditional exercise is that the city does not have to pay the purchase price unless and until a permit is issued for the interbasin transfer. He said another advantage is to have the Garwood Irrigation Company as a partner in the permit process. A disadvantage of the conditional approach is that the city would relinquish the monthly option payments and any expenses incurred for the engineering and permitting activities if either party terminated the contract. In order to exercise the conditional approach, which Mr. Hennings said staff was recommending, the city would have to appropriate the funds for the ultimate purchase, even though the cash would not flow until the permit was issued, which could take months or even years. He said he would propose that the Choke Canyon Reserve Fund be used on an interim basis until revenue bonds could be sold to pay for the purchase of the water rights. He said the city would have 90 days from the date of the issuance of the permit to purchase the water rights. In addition, the Council would need to adopt a resolution giving notice to the Garwood Irrigation Company about the conditional exercise, and the city's legal attorney in Austin would need to begin the legal work on Minutes Regular Council Meeting November 12, 1996 Page 11 the permit application. Mayor Rhodes and Mr. Hennings both noted that some City of Corpus Christi staff and City of Austin staff met recently to discuss Corpus Christi's purchase of the water rights. Council Member Martin asked how an outright purchase would be funded. Mr. Hennings said the city could either appropriate monies out of the Choke Canyon Reserve Fund, proceed with a revenue bond sale, and then reimburse the reserve fund as soon as the bonds were sold; or appropriate monies out of the Utilities Fund's unappropriated balance. He briefly discussed issues relating to both options. Responding to another question from Mr. Martin, City Attomey Bray said the contract with Garwood requires that the city provide them with satisfactory evidence of financial ability to pay. Mr. Martin questioned whether the deferred payments on the Choke Canyon debt could be used as the "satisfactory evidence" of ability to pay that is needed. He also questioned Garwood's termination right under the conditional exercise, and Mr. Bray said the only time Garwood could exercise that termination right is if they, in good faith, determine that proceeding with the process would damage their water right. In reply to Council Member Best, Mr. Hennings said the conversion of 35,000 acre-feet of water on the Lower Colorado River from irrigation use to municipal/industrial use improves the upstream yield of the water to Austin and other users because it flattens out the demand. He added that Austin citizens and others are very concerned about the potential to move water from upstream of the Colorado River to San Antonio, and they want to ensure that Corpus Christi's permit would not set a dangerous precedent for them. Dr. Best asked when the Garwood action would be reflected in customers' water bills, and Mr. Hennings said it would be when the city makes the payment to Garwood, which would be an amortized capital expense. If the conditional exercise is adopted, it could take two or more years for that cost to be reflected. Council Member McNichols said he agreed that staff should consider not using the Choke Canyon Reserve Fund as evidence of the city's ability to pay. Council Member John Longoria asked if the monthly option payments would remain the same if the conditional exercise is approved, and Mr. Hennings said they would remain the same. Responding to Mayor Rhodes, Mr. Hennings said this item would be on next week's agenda. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 8, wastewater winter averaging. Minutes Regular Council Meeting November 12, 1996 Page 12 Mr. Hennings explained that the ordinance establishing winter averaging for residential wastewater rates contains a provision that new winter average rates would not be recalculated if the drought contingency plan is in effect. He noted that the city is currently in Condition III of the drought plan, but mandatory water rationing has not yet been implemented. Consequently, a number of residents have complained that they have reduced their water consumption to an amount less than what their winter average is based upon. Staff was proposing to recalculate the winter averages to take into account the current consumption, and in order to do so, the corresponding section of the ordinance needs to be repealed. Mayor Rhodes called for comments from the audience. Mr. John Hartley asked for a status report on the use of effluent. City Secretary Chapa polled the Council for their votes as follows: 8. ORDINANCE NO. 022743 Ordinance amending Section 55-100 of the Code of Ordinances, City of Corpus Christi, to allow computation of the wastewater winter average while water conservation measures are in effect; providing for severance; providing for publication. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." Mayor Rhodes stated that staff would provide an answer to Mr. Hartley's question at the end of the Council meeting. She then introduced Mr. Jimmy Burke, the Mayor of Deer Park, who was in Corpus Christi for the Texas Municipal League conference. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 9, proposed factory outlet center. Mr. Tom Utter, Assistant City Manager for Development Services, explained that in February 1995 the Council approved three contracts: an infrastructure contract with Mr. Stan Samberg, the leasing agent for the proposed outlet center; and two real estate contracts with Mr. Garnett Brooks and the Garnett Brooks Family Trust providing for certain access easements and the dedication of about 180 acres for a proposed municipal golf course. The original project was designed to have about 250,000 square feet of retail space as a factory outlet center, and in return, the city would install water and sewer lines (which would also serve the golf course), and an off and on ramp from the highway. The cost of the infrastructure improvements would be about $750,000. Minutes Regular Council Meeting November 12, 1996 Page 13 Responding to Council Member Betty Jean Longoria, Mr. Utter said that a golf course planner has been selected, but no work has begun yet on the golf course because it is dependent on the progress of the outlet center. Mr. Samberg acknowledged that there have been problems associated with the development of the factory outlet center, not the least of which is that the developers --Charter Oak Partners -- pulled out of the project earlier this year. Mr. Samberg said he was also aware of letters that had been sent to some of his tenants saying that the Council had withdrawn their support of the project, which was untrue. In addition, large developers have informed Mr. Samberg that they cannot consider the project until late 1997. Consequently, Mr. Samberg said he has secured the services of a consultant, Mr. Gary White, who has said there are three developers who are very interested in the project. Mr. Samberg said he has promised that the Corpus Christi outlet center will begin construction prior to mid-April 1997. Council Member Heldenfels asked Mr. Samberg how much earnest money he has with the city, and Mr. Samberg replied that he had none. Council Member Cooper said she was initially opposed to the outlet mall and remains opposed to it because she said the Council has seen no concrete evidence that it is a viable project. In addition, existing retail facilities in Corpus Christi are experiencing lagging sales and would receive more competition from the center. Responding to Council Member Best, Mr. Samberg said his contract with Mr. Brooks requires that ground breaking will begin prior to mid-April 1997. He added that there were many committed tenants who wanted to see the project successfully completed, and he has also invested much time and money in the project. Mrs. Longoria said that citizens benefit from competition, citing the example of how the Southside malls have continued to challenge each other to improve and attract more customers. She added that she wanted assurance that the center's design would not be diminished, and she would be willing to support it one more time. Mr. Samberg said he has told interested parties that the center will not be a "strip" shopping center but would be a first-class project. Council Member Martin asked how many square feet Mr. Samberg had under lease. Mr. Samberg said he had 80,000 square feet of firm commitments. Responding to another question from Mr. Martin, Mr. Utter said that before the city would begin construction, the outlet mall would need to have begun construction. Mr. Martin asked if there was a bond or any other requirement of the developer, and Mr. Utter said there was not. He added that the contracts with Mr. Brooks have expired but can be renewed by the Council. Following a brief discussion, Mr. Samberg clarified that he has 27,000 square feet of executed leases and several more that have committed to the project but have not signed leases because the original developer pulled out. Minutes Regular Council Meeting November 12, 1996 Page 14 Mr. White, who works with the Fred Arnold Company of Dallas, said he represents retailers. He briefly described his company's interactions with Charter Oaks prior to their departure. Despite that, Mr. White said he continued to believe that this could be a viable project and he told Mr. Samberg of some developers who he thought would be interested. He described Corpus Christi's potential for success as a site. Council Member McNichols asked why a situation would occur where one factory outlet center, such as the one in San Marcos, would be so successful while another nearby center in New Braunfels would not be. Mr. Samberg said the New Braunfels center was not developed by a factory outlet developer. He emphasized the importance of tourist traffic, adding that the citizens of Corpus Christi alone could not support an outlet center without the influx of tourists. Council Member Black asked how much money has been appropriated by the city for the infrastructure improvements, and Mr. Utter replied about $750,000--$400,000 for the ramp reversals and $350,000 for the water and sewer extensions. Responding to Mr. Heldenfels, City Attorney Bray said the contract requires that before the city can begin its portion, 70% of 150,000 square feet of the outlet center must be leased, 84,000 square feet of which must be leased to genuine factory outlet store tenants. Mrs. Cooper asked if such a time delay as this one (approximately two years thus far) is typical in factory outlet center developments. Mr. White said delays such as this were not unusual. A brief discussion ensued. Mr. Martin asked how many square feet of construction was required in the first phase of development, and Mr. Utter replied a minimum of 150,000 square feet. Mayor Rhodes called for comments from the audience. Mr. Tom Ellick, co-owner of Sunrise Mall, said that despite its prime location, Sunrise has experienced some difficulties in its development. He discussed their efforts in encouraging "value" retailers to open in Sunrise, and the problems that have arisen since the outlet center has been in limbo for some time. He also discussed how the outlet center would affect their business. Mr. Brian Giffin, Manager of Sunrise Mall, reiterated that the outlet center will compete with Sunrise Mall, and he objected to what he said were subsidies that will be given to the factory outlet center (in the form of infrastructure improvements). He described vacant retail centers that currently exist in the northwest area where the outlet mall is planned to be built. Mr. Hal George said he was representing owners of some retail centers who are opposed to the factory outlet mall. He asked the Council not to extend Mr. Samberg's contract. He said Minutes Regular Council Meeting November 12, 1996 Page 15 according to studies, about 80% of the center's sales will come from the local market, which constitutes competition to the existing retail stores in Corpus Christi. He said local tax dollars were being used to build the infrastructure for the center. Mr. Bill Brown, of Peterson Development Company, said the factory outlet center was unfair to local taxpayers, and he quoted from a publication concerning key shopping center legal issues. He urged the Council to instruct city staff to renegotiate Mr. Samberg's contract to require non- refundable earnest money as well as other caveats to protect the taxpayers. Mayor Rhodes said the city was not "giving" the outlet mall $750,000 --the infrastructure is needed for the other two projects the city wishes to develop in that area, the golf course and the recreational vehicle park. Mr. Larry Becker, Chairman of the Northwest Area Council, said that organization still fully supports the proposed center, as well as the development of the golf course and R.V. park. Mr. Jimmie Till said this project has dragged on long enough. He said he agreed that some escrow money was needed from Mr. Samberg. Mr. John Hartley said he thought the outlet mall could be successful and could serve as an attractive "gateway" to the people entering Corpus Christi from that direction. Mrs. Black, referring to an earlier comment by one of the speakers, said much money has been invested in the downtown area and it is being revitalized. She asked about the retail space in the malls. Mr. Giffin said that Padre Staples Mall has about one million square feet and he thought they had about 75,000 square feet of vacant space, and Sunrise Mall has about 800,000 square feet, of which about 90,000 is vacant. Mrs. Longoria reiterated that competition is a way of life for businesses, and she emphasized the importance of the addition of the golf course and the R.V. park. Mr. Martin said he did not consider the construction of South Padre Island Drive and Staples Street to be a government subsidy for the southside malls. He said the cost of the infrastructure improvements to the factory outlet mall would, in essence, be the price the city is paying for the land for the golf course and is no more a subsidy than the southside improvements were. He said he thought the city deserved something in return for continuing to grant the outlet project several time extensions, and negotiations needed to take place. Mr. Heldenfels said the only way he would support this project is if there is a time certain for its construction and the requirement of $25,000 to $100,000 in escrow funds. Mayor Rhodes made a motion to direct staff to negotiate a revised contract with Mr. Samberg containing a time certain and some type of surety for the project's construction. The motion was Minutes Regular Council Meeting November 12, 1996 Page 16 seconded by Mr. Heldenfels, and it passed on a voice vote (Black voting "No"). The Mayor said the contract would then be brought back for the Council's approval. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Items 10, 11 and 12, airport terminal reconstruction project. Ms. Bonnie Allin, Director of Aviation, said several changes have recently occurred which have resulted in a reassessment of the airport terminal reconstruction and which will allow the project to be completed much sooner than originally anticipated. She referred to diagrams of the terminal's existing layout and to the reconstruction layout that was approved in February. She said one of the changes is that American Eagle Airlines is bringing in a jet bridge and adapter, and will be moving to Gate 16 in January 1997 to better accommodate passengers. The move will also even out the passenger distribution between the airport's east and west concourses. Ms. Allin went on to say that the Council had recently approved a long-term contract with Multirestaurants Management Inc. to operate new food and beverage concessions. They will invest $650,000 into tenant improvements in the area that was the old lounge. The location of the current restaurant was not a viable location for the new concession area because of its inaccessibility to persons with disabilities; that area will be converted to public use space. Ms. Allin also discussed the change in the design from two checkpoints to a single checkpoint, and changes in the rental car and baggage claim area. Responding to Council Member Martin, Ms. Allin said staff is hoping to begin in earnest the design of the consolidated three phases in December, with an approximate five-month design period. She said the Federal Aviation Administration (FAA) would like to award their grant by the end of June. Mr. Martin asked what will go in the space currently utilized by American Eagle, and Ms. Allin said Conquest Airlines will remain at that gate. Council Member Best asked why the current restaurant space could not continue to be utilized. Ms. Allin said it was due to a combination of factors, one being that the restaurant operator would probably not be able to get a waiver to continue using the handicapped lift without significant expense to replace it. Mr. Hennings added that the Americans with Disabilities Act would require the placement of a wheelchair ramp if the restaurant was to be reconstructed there. A discussion ensued about other proposed design changes. Council Member John Longoria asked about the existing revolving doors at the entrance of the baggage claim area, and Ms. Allin said those doors will be removed and it will be accessible from the airport lobby area. Minutes Regular Council Meeting November 12, 1996 Page 17 Mr. Martin asked about renovation to the terminal's restrooms, and Ms. Allin said the last ones to be renovated are the ones at the front entrance. She added that the Japanese rock garden will be relocated to the Museum of Oriental Cultures. Referring to Item 12, Mr. R.H. Shackelford, Director of Engineering Services, discussed the proposal to execute a professional services contract with Day & Zimmerman to provide program management services for the multiple airport reconstruction projects. He discussed the concept and importance of hiring a program management firm. Responding to Council Member Betty Jean Longoria, Mr. Shackelford said about 97% of the fee for the project manager will be paid through FAA grants and passenger facility charges. Council Member McNichols said he thought that the proposed project manager contract was very expensive. Mr. Shackelford said this firm has an excellent reputation, and the airport industry has found that by utilizing project managers, cost savings can be realized through the lack of change orders and by expediting the project. Mr. Martin asked if it was staff's position that they would be prepared to use construction managers on other major projects, and Mr. Shackelford replied that it would depend on the complexity of the project. A brief discussion ensued. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 10. M96-344 Motion to amend the "Terminal Building and Space Utilization Study & Action Plan" to consolidate Phases 2a, 2b, and 3 of the Terminal Reconstruction project into one contract. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, and Martin voting "Aye"; Heldenfels and McNichols absent. 11. M96-345 Motion authorizing the City Manager or his designee to execute Change Order No. 5 to the contract with B.E. Beecroft Company for Reconstruction of the Hayden Head Terminal Building, Phase 1, in the amount of $129,091. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, and Martin voting "Aye"; Heldenfels and McNichols absent. Minutes Regular Council Meeting November 12, 1996 Page 18 12.a. M96-346 Motion authorizing the City Manager or his designee to execute a professional services contract with Day & Zimmerman (D&Z) Transportation Services for an amount not to exceed $626,695 to provide program management services for multiple Airport Capital Improvement Projects over a 27 -month period at the Corpus Christi International Airport. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, and Martin voting "Aye"; Heldenfels and McNichols absent. 12.b. ORDINANCE NO 022744 Ordinance appropriating $650,000 from the unappropriated fund balance of the No 246 Airport Passenger Facility Charge (PFC) Fund to award a Program Management Services contract to oversee Airport Capital Improvement projects and to provide for related expenses. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, and Martin voting "Aye"; Heldenfels and McNichols absent. ************* Mayor Rhodes opened discussion on Items 13 and 14, FY 1996-97 General Fund first quarter revenues. Mr. Hennings referred to a graphic illustrating General Fund first quarter revenues. He noted that overall the revenues are on track according to the budget plan. In addition, the expenditure levels are lower than anticipated. He said that as a result, staff is recommending that the amendments to the compensation ordinance be approved, which would implement the 3% pay raise on November 25, 1996 for all city employees except the police and fire union members whose salaries are set by the union contracts. Council Member Martin asked about police and fire command personnel. Mr. Hennings said those personnel are part of the managerial group and they would be part of the 3% salary range and salary adjustment. Responding to another question from Mr. Martin, Ms. Cynthia Garcia, Director of Human Resources, said all the other items, other than salary, apply to the police and fire managerial group; those benefits include education pay and longevity pay. She added that the police chief and fire chief, by state law, are exempted from the bargaining unit. Mr. Martin asked if this action also applied to the Municipal Court judges, and Mr. Hennings said it did. Minutes Regular Council Meeting November 12, 1996 Page 19 Council Member John Longoria said that at one time the Municipal Court judges had the option, in lieu of setting a fine, that a person could be required to perform community service. He requested more information about that issue. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 14. FIRST READING ORDINANCE Amending Ordinance 3658, as amended, Subsections 251 through 257, revising classification schedules. Amending Ordinance 8127, Section 501, to provide for an approximate 3% general increase and range adjustment, rounded as appropriate, for salary schedules A and B and Grade 8, effective November 25, 1996. Amending Ordinance 8127, Section 510, to provide for an approximate 3% general increase and range adjustment to managerial classifications in the Managerial Group Pay Plan, including council -appointed positions, rounded as appropriate, effective November 25, 1996. Amending Ordinance 3658, Section 151.2, to correspond with definition of probationary period in Civil Service Board Rules and Regulations. Amending Ordinance 8127, Section 700, Subsection 707.1, to clarify that term life insurance for Police and Fire managerial personnel is covered in collective bargaining agreements; providing for severance. 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 absent. * * * * * * * * * * * * * Mayor Rhodes opened the public hearing on Item 15, proposed street closure in King's Crossing West. No one appeared in opposition to the street closure. Council Member Martin made a motion to close the public hearing, it was seconded and passed unanimously. City Secretary Chapa polled the Council for their votes as follows: 15. FIRST READING ORDINANCE Closing and abandoning all that portion of a dedicated but not improved 40 -foot wide Road Right -of -Way, whose centerline is contiguous with the common boundary lines of Lots 25 and 26, Section 6, and Lots 3 and 4, Section 7 Flour Bluff and Encinal Farm and Garden Tracts and that is situated in Lot 1, Block 1, King's Crossing West, Unit 1 and closing and abandoning all that portion of a dedicated but not improved 40 -foot wide Road Right-of- Minutes Regular Council Meeting November 12, 1996 Page 20 Way, whose centerline is contiguous with the common boundary lines of Lots 27 through 30, Section 6, and Lots 1 and 2, Section 7 Flour Bluff and Encinal Farm and Garden Tracts and that is situated in the approximately 104.9 acres of Oso Creek Parklands acquired by the City from the Resolution Trust Company in 1992. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, Martin, and McNichols voting "Aye"; Heldenfels and J. Longoria absent. * * * * * * * * * * * * * Mayor Rhodes pointed out that the zoning case for Item 16 had been withdrawn by the applicant. 16. Case No. 896-2, Johnny O'Neal. Jr.: A change of zoning from an "F -R" Farm -Rural District to an "RE" Residential Estate District on Flour Bluff and Encinal Farm and Garden Tracts, Section 51, Lots 20, 29, and 30, located on the south side of Yorktown Boulevard, between Flour Bluff Drive and Waldron Road. WITHDRAWN Zo.,irng Map in reference to -Flan Bluff and Errei„a1 Fa.,.. and Garden Tra.,ts, Seetieh 51, Council Member Martin said he had received information from Navy officials concerning this zoning case, which included statements that raised questions about a Planning Commissioner that need to be reviewed. Mr. Martin questioned the procedure if errors are found in an ethics statement. City Attorney Bray said if the statement was intentionally erroneous, there would be grounds for some sort of discipline. * * * * * * * * * * * * * Mayor Rhodes opened the public hearing on the following zoning case: 17. Case No. 1096-1 - Jacques Valley: A change of zoning from an "A-1” Apartment House District and a "B-1" Neighborhood Business District to a "T -1B" Mobile Home Park District on Flour Bluff Gardens Unit 2, Block 1, Lots lA and 1B, located on the northeast corner of Don Patricio and Waldron Roads. Minutes Regular Council Meeting November 12, 1996 Page 21 Mayor Rhodes said the Planning Commission and staff recommended approval. Mr. Brandol Harvey, Director of Planning and Development, showed a video of the subject property, explaining that the request was to rezone property located on Waldron Road in order to expand an existing mobile home park. He said currently if the property did not develop as multi- family or business, 64 housing units could be accommodated on the approximately two acres. The request to rezone to "T -1B" Mobile Home Park District would allow no more than 12 mobile homes on the acreage. Mayor Rhodes called for comments from the audience. Mr. Faris Kirkland, President of Southern Pointe Apartments Inc., said he owns the existing two adjacent lots to the south of the subject property and was opposed to the rezoning request. He said he had intended to expand the apartment project and the addition of more mobile homes fronting on Waldron would diminish the attractiveness of his project. He said this particular mobile home park creates significant security problems to his business and any future expansion he would have. Council Member Martin asked if the 20% rule was in effect, and Mr. Harvey said it was not. He added that there were three property owners who opposed the rezoning. Mr. Harvey referred to a map illustrating the subject property and adjacent properties and those which were supportive of and opposed to the rezoning. He explained the definition of the 20% rule. Mr. Jacques Valley, the applicant, said he has owned the property since 1975 and has been trying to sell it since then. Consequently, he said the only way he could develop the land was to expand his existing mobile home park. He added that the area fronting Waldron would be required to have appropriate fencing and screening. Council Member Betty Jean Longoria asked if the entrance to the mobile home park was on Don Patricio Road, and Mr. Valley said it was and there would be no access to Waldron. Council Member Black asked about the condition of the existing mobile home park. Mr. Harvey explained that it is "grandfathered" in terms of many design standards which will be applied to the new part of the mobile home park if it is rezoned. The old park does not have a screening fence but it does have some vegetation. Mr. Valley said he bought the existing park as a foreclosure and it needed many improvements. He said they will improve the roads within the park after the wastewater lines are brought into the new portion. Mr. Martin said he thought that the whole project would need to be brought up to design standards. Mr. Harvey said the standards would only apply to the rezoned portion. Mr. Charles Roberts, 2142 Alazan, said he was opposed to the zoning change because he did Minutes Regular Council Meeting November 12, 1996 Page 22 not want to see another trailer park fronting on Waldron Road. Council Member Best made a motion to close the public hearing, seconded by Council Member McNichols, and passed unanimously. City Secretary Chapa polled the Council for their votes as follows: 17. FAILED TO PASS Zoning-Mftp in rcfeiei.cc to Fleu. Bluff Caidei.s Unit 2, Block 1, Lets lA and 1B, fret.. "A - •' IIumc Palk District, peridit.g fur publicatieif, and d elarit,g a.. en.ergeney. The foregoing ordinance failed to pass by the following vote: Rhodes, Cooper, B. Longoria, and Martin voting "Aye"; Best, Black, and McNichols voting "No"; Heldenfels and J. Longoria absent. Mr. Chapa explained that the vote was 4-3, and the ordinance failed because it requires five affirmative votes to pass. Mayor Rhodes said the zoning had been denied. ************* Mayor Rhodes opened the public hearing on the following zoning case: 20. Case No. 1096-7 - Eloy H. Salazar: A change of zoning from an "R -1B" One -family Dwelling District with a Special Permit to an "AB" Professional Office District on Lexington Subdivision, Block 3, Lot 50, located on the north side of Sacky Drive, approximately 380 feet east of Ayers Street. Mayor Rhodes said the Planning Commission and staff recommended approval. No one appeared in opposition to the zoning request. Council Member Best made a motion to close the public hearing, seconded by Council Member Black, and passed unanimously. City Secretary Chapa polled the Council for their votes as follows: ORDINANCE NO. 022747 Amending the Zoning Ordinance upon application by Eloy H. Salazar, by changing the Zoning Map in reference to Lexington Subdivision, Block 3, Lot 50, from "R -1B" One- Minutes Regular Council Meeting November 12, 1996 Page 23 family Dwelling District with a Special Permit to "AB" Professional Office District; providing for publication; and declaring an emergency. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, Martin, and McNichols voting "Aye"; Heldenfels and J. Longoria absent. * * * * * * * * * * * * * Mayor Rhodes opened the public hearing on the following zoning case: 18. Case No. 1096-3 - Charlie Thomas' Courtesy Ford. Inc. A change of zoning from an "A-2" Apartment House District and an "AT" Apartment -Tourist District to a "B-4" General Business District on Flour Bluff and Encinal Farm and Garden Tracts, Section 13, 1.02 acres out of Lots 7 and 8, located approximately 635 feet north of South Padre Island Drive, 500 feet south of McArdle Road, and 525 feet west of Clare Drive. Mayor Rhodes said the Planning Commission and staff recommended approval. No one appeared in opposition to the zoning request. Council Member Best made a motion to close the public hearing, seconded by Council Member Betty Jean Longoria, and passed unanimously. Responding to Council Member McNichols, Mr. Utter said there was a buffer of about 500 feet or more between the property and residential units. City Secretary Chapa polled the Council for their votes as follows: ORDINANCE NO. 022745 Amending the Zoning Ordinance upon application by Charlie Thomas' Courtesy Ford, Inc., by changing the Zoning Map in reference to Flour Bluff and Encinal Farm and Garden Tracts, Section 13, 1.02 acres out of Lots 7 and 8, from "A-2" Apartment House District and "AT" Apartment -Tourist District to a "B-4" General Business District; providing for publication; and declaring an emergency. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, B. Longoria, Martin, and McNichols voting "Aye"; Cooper, Heldenfels, and J. Longoria absent. * * * * * * * * * * * * * Minutes Regular Council Meeting November 12, 1996 Page 24 Mayor Rhodes opened the public hearing on the following zoning case: 19. Case No. 1096-4 - Robert Driscoll, Julia Driscoll and Robert Driscoll, Jr. Foundation: A change of zoning from an "A-1" Apartment House District to an "R -1C" One -family Dwelling District on Tract 1 and an "AB" Professional Office District on Tract 2 on J. C. Russell Farm Blocks, Block 9, Lot 4, located on the southwest corner of Bates Drive and Old Brownsville Road. Mayor Rhodes said the Planning Commission and staff recommended approval. No one appeared in opposition to the zoning request. Council Member Best made a motion to close the public hearing, seconded by Council Member Cooper, and passed unanimously. City Secretary Chapa polled the Council for their votes as follows: ORDINANCE NO. 022746 Amending the Zoning Ordinance upon application by Robert Driscoll, Julia Driscoll and Robert Driscoll, Jr. Foundation, by changing the Zoning Map in reference to J. C. Russell Farm Blocks, Block 9, Lot 4, "A-1" Apartment House District to an "R -1C" One -family Dwelling District on Tract 1 and an "AB" Professional Office District on Tract 2; providing for publication; and declaring an emergency. 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 absent. * * * * * * * * * * * * * Mayor Rhodes opened the public hearing on the following zoning case: 21. Case No. 1096-8 - Kings Court Joint Venture: A change of zoning from a "B-4" General Business District to an "R -1B" One -family Dwelling District on Tract 1 and an "R-2" Multiple Dwelling District on Tract 2 on Country Club Estates Unit 20, Block 2, south 5.66 acres out of Lot 11, located on the north side of Acushnet Drive, approximately 550 feet east of Weber Road. Mayor Rhodes said the Planning Commission and staff recommended approval. No one appeared in opposition to the zoning request. Council Member Best made a motion to close the public hearing, seconded by Council Member Betty Jean Longoria, and passed Minutes Regular Council Meeting November 12, 1996 Page 25 unanimously. City Secretary Chapa polled the Council for their votes as follows: 21. ORDINANCE NO. 022748 Amending the Zoning Ordinance upon application by King's Court Joint Venture, by changing the Zoning Map in reference to Country Club Estates Unit 20, Block 2, south 5.66 acres out of Lot 11, from "B-4" General Business District to "R -1B" One -family Dwelling District on Tract 1 and "R-2" Multiple Dwelling District on Tract 2; providing for publication; and declaring an emergency. 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 absent. Council Member Martin asked how many votes were required to approve an ordinance. City Attorney Bray said the City Charter requires a majority of all the Council members. If a Council member does not vote because he or she has submitted a disclosure affidavit for that item, they do not count in the denominator; however, five votes would still be required in that case. If two Council members abstained from voting due to conflicts of interest, then four votes would carry an ordinance. Council Member Best referred to Case No. 1096-1, Jacques Valley. He said that since the vote on that zoning case was so close, he thought the whole Council should be present to vote on it. He then made a motion to reconsider that item next week, seconded by Mayor Rhodes; the motion passed (McNichols voting "No"; Heldenfels and J. Longoria absent). * * * * * * * * * * * ** Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 22 through 29, and Council Members did not request any items be withheld for discussion. City Secretary Chapa said that Council Member John Longoria had filed a disclosure affidavit on Item 23. Mr. Chapa polled the Council for their votes and the following were passed: 22. M96-347 Motion authorizing the City Manager to execute an annual joint funding agreement with the United States Geological Survey (USGS), U.S. Department of the Interior, for the continuation of surface water data collection and limited studies by the USGS for the City's Minutes Regular Council Meeting November 12, 1996 Page 26 water supply activity; and providing for the City to pay the USGS in the amount of $75,650 out of a total project cost of $111,870 during the federal fiscal year October 1, 1996, through September 30, 1997. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, Martin, and McNichols voting "Aye"; Heldenfels and J. Longoria absent. 23. RESOLUTION NO. 022739 Resolution nominating and designating Sitel as a qualified business and enterprise project pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code. The foregoing resolution passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, Martin, and McNichols voting "Aye"; Heldenfels and J. Longoria absent. 24. ORDINANCE NO. 022749 Ordinance authorizing the City Manager to execute a Developer Agreement with Mr. Patrick H. Nolan to delay the construction of specified public improvements to Tract 5B, Lot 7, Lokey Subdivision. 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 absent. 25. FIRST READING ORDINANCE Amending the Code of Ordinances, Chapter 35, Oil and Gas Wells, to correct the committee name, to limit application of the chapter to oil and gas wells outside the City that impact residents; and to recognize that enforcement of Article VII is not in the Oil and Gas Well Division but in the City Manager; providing for severance. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, Martin, and McNichols voting "Aye"; Heldenfels and J. Longoria absent. 26. FIRST READING ORDINANCE Amending the Code of Ordinances Chapter 53 - TRAFFIC, Article VIII - Schedules, Section 53-254, Schedule V - Increase in State Speed Limit in Certain Zones, on Cimmaron Boulevard. Minutes Regular Council Meeting November 12, 1996 Page 27 The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, Martin, and McNichols voting "Aye"; Heldenfels and J. Longoria absent. 27. FIRST READING ORDIN NCR Amending the Code of Ordinances Chapter 53-252, Schedule III - Parking Prohibited at All Times on Certain Streets, by prohibiting curbside parking on the following sections of Waldron Road at all times. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, Martin, and McNichols voting "Aye"; Heldenfels and J. Longoria absent. 28. ORDINANCE NO. 022750 Authorizing the City Manager, or his designee, to execute a 10 -year Use Privilege Agreement with Padre Soccer League for 25.76 acres at Bill Witt Park for a youth soccer program. The foregoing ordinance passed on second reading by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, Martin, and McNichols voting "Aye"; Heldenfels and J. Longoria absent. 29. ORDINANCE NO 022751 Authorizing the City Manager or his designee to execute approximately a five-year lease ending December 31, 2001 with Continental Airlines, Inc. for ticket counter space, office space, gate space, apron space, and joint use of the baggage claim space and other common areas at Corpus Christi International Airport in consideration of payment of fees that total $4.06 per enplaned passenger and are adjusted annually based on a fixed formula; providing for publication. The foregoing ordinance passed on second reading by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, Martin, and McNichols voting "Aye"; Heldenfels and J. Longoria absent. * * * * * * * * * * * ** Mayor Rhodes called for the City Manager's report. Mr. Hennings said that during next week's meeting the Council will consider the following items: the Garwood water rights option; the Minutes Regular Council Meeting November 12, 1996 Page 28 new federal courthouse and Gateway Project; and the block rate structures for water rates. He added that staff should have a report by December 10th on the use of effluent. Mr. Carl Crull, Assistant City Manager for Public Works and Utilities, said as of that morning the reservoir levels were at 30.6% of capacity, and inflows from the Frio River to Choke Canyon were practically non-existent, while there were inflows in the Nueces River. Mr. Hennings added that he responded to a request from Mr. Barry McBee, TNRCC Chairman, for an informal meeting to discuss changing the water release requirements. Mr. Hennings had also responded to Nueces County Commissioner Joe McComb about the water releases and the salinity levels in Nueces Bay. He also distributed a copy of a press release concerning the bond validation suit. Mayor Rhodes called for Council concerns and reports. Council Member McNichols pointed out that the salinity levels in Nueces Bay had been monitored. He added that seismic tests were being conducted in the Laguna Madre, and residents were expressing concern about possible damage to their foundations. Council Member Martin said he had received a notice of an upcoming meeting of the Regional Water Supply Task Force, at which those present would be asked to sign a non -disclosure form. Mr. Hennings said that staff did not believe that committee was subject to the Open Meetings law, but staff still felt they should follow open meetings procedures and asked the committee to cancel that meeting. Mr. Martin also asked about the city's health insurance. He said one major issue was that only one pharmacy chain is responsible for employees' prescriptions. Mr. Hennings said staff had received many complaints about Eckerds and the service they provide. Mr. Martin said he had also heard of complaints about other aspects of the health insurance, including past due notices which employees were receiving. Council Member Black thanked everyone involved in the Founder's Day Walk, adding that it would be an annual event. Council Member Best suggested that the issues raised by Commissioner McComb, to which Mr. Hennings responded, be discussed by the whole Council at an upcoming meeting. He also referred to a previous proposed contract, which had failed, to hire Mr. Robert Bruner to assist in the permitting of the new landfill. Dr. Best said he had first voted to approve the contract, and when it came back before the Council he voted against it because he had said the new City Manager should have some say in that issue. Since that time, he said, Mr. Hennings has expressed a desire to hire Mr. Bruner in that capacity. Consequently, Dr. Best asked that the Council reconsider that item at the next Council meeting. Mayor Rhodes directed staff to place that issue on next week's agenda. Minutes Regular Council Meeting November 12, 1996 Page 29 Council Member Cooper said she had a pamphlet on the Neighborhood USA conference that was held in Little Rock, Arkansas, last May, at which she and Ms. Susan Cable presented a program on how to design a neighborhood association handbook. The pamphlet states that their workshop was considered one of the most popular at the conference and the handbook which they and others developed is very valuable. Council Member Betty Jean Longoria requested an update on the construction of the Northwest Senior Center. She also said there were many improvements to the downtown area. * * * * * * * * * * * * * Mayor Rhodes called for petitions from the audience. Mr. R.J. Herschbach, 4650 Hakel, discussed what he said was a lack of handicapped parking at the Corpus Christi International Airport. Mr. Hennings said staff believed it was in compliance with the law concerning parking for the handicapped, but they will review it to be sure. There being no further business to come before the Council, Mayor Rhodes declared the Council meeting adjourned at 7:05 p.m. on November 12, 1996. * * * * * * * * * * * * *