HomeMy WebLinkAboutMinutes City Council - 01/28/1997I 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 January 28, 1997, which were approved
by the City Council on February 11, 1997.
WITNESSETH MY HAND AND SEAL, this 1 lth day of February, 1997
klria(
Armando Chapa
City Secretary
SEAL
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Council Meeting
January 28, 1997
2 p.m.
PRESENT
Mayor Mary Rhodes
Mayor Pro Tem Edward Martin
Council Members:
Dr. Jack Best
Betty Black
Melody Cooper
Tony Heldenfels
Betty Jean Longoria
John Longoria
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 Martin.
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 January
21, 1997, and there being no corrections, she proclaimed them approved as presented.
*************
Mayor Rhodes said that two city employees who were retiring in the month of January were
being recognized for their years of service.
City Manager Hennings commended Mr. John Hudson, a Senior Inspector I in the Building
Inspection Department, who had 30 years of service. Council Member John Longoria noted that Mr.
Hudson is actively involved with the Alzheimer's Association.
Mr. Wayne Cockroft, Wastewater Superintendent, praised Mr. Wesley MacKenzie, Plant
Supervisor III, in the Wastewater Department, who worked for the city for 24 years.
* * * * * * * * * * * * *
Minutes
Regular Council Meeting
January 28, 1997
Page 2
Mayor Rhodes opened discussion on Item 3, an update on the Community Progress
Partnership (CPP).
Mr. Al Jones, Chairman of the CPP, explained that a draft proposal has been developed and
a series of meetings will be held to present it to the public. The first meeting will be held on January
30, 1997, at 6 p.m., followed by a series of meetings during February in the five Council districts.
He said it is hoped that after those meetings are held, a final proposal can be written. Mr. Jones
added that the majority of input he has received has been positive, and he emphasized that this has
been a grassroots effort.
Council Member Martin referred to one of the proposals involving an arena on the campus
of Texas A&M University -Corpus Christi. He also noted that an article in the Corpus Christi
Caller -Times about the CPP proposals had explained well the cost of the projects and the positive
impact they would have on the community. Mr. Jones said they could provide that information to
anyone who was interested in it.
Mr. Jones added that the arena concept was never intended to compete with the proposed
fairgrounds facility in the western portion of the county. He said a multi-purpose facility has been
proposed to be located in various areas of the city; the benefit of locating it on the TAMU-CC
campus is that both the city and the university could provide the funds to build it and the university
could operate it.
Council Member Betty Jean Longoria said rumors have been circulating about the location
of the multi-purpose facility, and Mr. Jones said he was amazed that people continue to believe that
the CPP has a hidden agenda, which it does not.
* * * * * * * * * * * * *
Mayor Rhodes announced that a short video would be shown about Operation Clean Sweep,
which held its first demolition that morning. Mr. Tom Utter, Assistant City Manager for
Development Services, explained that Operation Clean Sweep is a public/private partnership
coordinated through Neighborhood Visions Inc., a non-profit charitable corporation established by
the Central Power and Light Community Advisory Council and the CITGO-Koch North Bay
Community Advisory Council. Several entities, neighborhood organizations and businesses,
including BFI Waste Systems, are also involved in this program.
Mr. Utter said this was the first day of a two-week mission of the Texas National Guard,
through its Drug Demand Reduction Program, to demolish several structures throughout the
community which have been identified by the Police Department as havens of criminal activity. Mr.
Utter commended several city staff members, including Sue Corey, George Oresco, George Hodge,
and members of the Police Department. The video illustrating some of the demolition was shown.
Minutes
Regular Council Meeting
January 28, 1997
Page 3
Responding to Council Member Best, Mr. Utter said that people who own dilapidated vacant
buildings can contact the city's Code Enforcement office about the possibility of participating in
Operation Clean Sweep in the future. He added that when buildings are demolished through this
program, it benefits the city because Community Development Block Grant (CDBG) funds do not
need to be utilized for that purpose.
* * * * * * * * * * * * *
Mayor Rhodes explained that Items 4 and 5, pertaining to the factory outlet center, would
be postponed, with the exception of Item 5.a., an agreement for the IH -37 access ramps. City
Manager Hennings said the necessary documents did not arrive in time before the Council meeting,
so those items would be brought back to the Council at the next meeting.
Mr. Hennings added that staff was recommending that the Council go ahead and vote on Item
5.a. because Mr. Billy Parks, the District Engineer for the Texas Department of Transportation
(TXDOT), was able to get that item scheduled on the Texas Transportation Commission agenda for
January 29, 1997. He said Item 5.a. has to do with the approval by the state of the ramp reversal
project; consideration of the engineering and construction items will be postponed.
Council Member Heldenfels asked if the city was obligated at all under Item 5.a. if the
factory outlet center is never constructed. Mr. Hennings replied that the city has no obligation to
proceed under the agreement.
Council Member McNichols questioned why the documents were not ready. Mr. Hennings
said the only thing staff could have done differently was to have refused to place these items on the
agenda until they had the necessary documents in hand; however, due to a compressed time frame
and commitments the developer made, Mr. Hennings said he agreed to put these items on the agenda.
He added that he could not answer why the documents were not available now.
Council Member Cooper said she would not support the proposal on the ramp reversals until
all of the necessary documents are available. She also questioned a specific provision in the
proposed contract with the developer regarding construction completion deadlines.
Mr. Hennings said the contract contained two assurances: the developer would provide the
financial security to the city that the Council requested to ensure that construction is begun and
completed by the deadlines specified. He said if they fail to comply with any of those provisions,
then they would forfeit $50,000 to the city. He said the second assurance is that in order for the city
to proceed with the engineering work on the ramp reversal project, the developer would provide the
city with the letter of credit to cover that cost in the event that they did not proceed with the factory
outlet center.
Minutes
Regular Council Meeting
January 28, 1997
Page 4
Mrs. Cooper read a portion of the contract pertaining to that issue, and she said she wanted
to ensure that the city has the remedies it needs. She said after all the delays this project has
experienced, she does not trust that the developer will complete this project even if they do begin
construction. City Attorney Bray said that provision may need to be clarified, but he understood it
to mean that the $50,000 bond is in effect through commencement of the second phase (the
additional 50,000 square feet).
Mr. Hennings reiterated that Mr. Parks went to considerable effort to place the issue of the
ramp reversals on the Texas Transportation Commission agenda, and that was why he was
recommending that the Council vote on that particular item.
Mr. Heldenfels said he thought that this was the "drop -dead" date for the developer; namely,
that if the contract was not executed at this point, it was no longer valid. Mr. Hennings said they did
tell the developer that, and the Council has the prerogative to not proceed with the project. He added
that Mr. Utter and other city staff have worked diligently with the land owner, the developer, and
their lawyers the last few weeks, and they have agreed to all the conditions specified by the Council
during a previous discussion. He said the next Council meeting would be in two weeks, at which
time they could finalize the project.
Mr. Heldenfels said the contract calls for the city to provide water and wastewater service
to the Brooks' property (approximately $600,000). He said he would not support the contract if it
allows for the ownership of the land to revert to the Brooks if the golf course and R.V. park are not
constructed.
Council Member Betty Jean Longoria said she was willing to give the project two more
weeks to be finalized, but she would not support any other extensions after that. She said if the
construction of a third municipal golf course could not be accomplished through this project, then
the city needs to find another way to do that.
Council Member Martin said the Council had requested a capital investment by the developer
in order for the project to proceed, and that has been agreed to. He asked staff to identify any
changes that are proposed in the project when they bring it back for final approval.
Responding to Mrs. Cooper, Mr. Stan Samberg said he had sent his signed portion of the
agreement back to the city; however, he said the agreement between Mr. Garnett Brooks (the land
owner) and the city was not finalized, but they are in the process of doing so. Mrs. Cooper asked
if Mr. Samberg would agree to amending the contract with regard to the construction deadlines as
previously discussed, and Mr. Samberg said he would agree.
Council Member Best said the delay was not caused by Mr. Samberg.
Minutes
Regular Council Meeting
January 28, 1997
Page 5
Council Member John Longoria asked if Mr. Samberg was still working on a similar outlet
center project in the Rio Grande Valley. Mr. Samberg replied that he had just received an extension
on that project and it would not conflict with the construction of the outlet center here.
Mayor Rhodes called for comments from the audience on Item 5.a. only.
Mrs. Dorothy Spann, 502 Del Mar, said this project has been awaited for a long time. She
said there was another project involving the possible development of a golf course on Mustang
Island. She questioned whether the investment in the factory outlet center was too great in exchange
for the development of a third municipal golf course.
Responding to Mrs. Spann, Mr. Martin said that the proposed golf course on Mustang Island
involved the City of Port Aransas and not the City of Corpus Christi. He said Port Aransas had
asked Corpus Christi to remove some land from its extraterritorial jurisdiction in order to develop
the golf course there.
4.a. POSTPONED
Metier. No. M95 048 passed and approved by City Cou11eil ei. February 28, 1995.
4.b. POSTPONED
Aniendmei.t No. 2 th.eugh July 15, 1997 of the Real Estat., Sales Centra.,t with Carnett T.
- - •
•.. - : .:: .
roughly boundcd by thc Union Pacific Railroad, thc Nucccs River, and thc Central Power
and approved by City Council on February 28, 1995, and Extension No.1 thereof through
Junc 1, 1996 was authorised by Motion No. 95 273 p. - • • -'
u.. S.,Ft.,aibec 26, 1995.
4.c. POSTPONED
• ..•• 6,-; .
wal. and
Minutes
Regular Council Meeting
January 28, 1997
Page 6
An.eneh..et.t N. 2 th.augh July 15, 1997 of th., Real Estate -Sales Contra.,t with Garnett T.
:..
fel th., eeirveyane., of a roadway right of way king approxii..at.,ly 60 fret -wide by-950-€e.,t
Brooks 1994 Family—Last Prepetty to the Cental Petverai.d Light Company .iglu,€ -way,
Estate Sales Contraefwa.3 authorized by M.,tiei. No. M95 047 pass., and approved -Ly City
1995.
City Secretary Chapa polled the Council for their votes on Item 5.a. as follows:
5.a. ORDINANCE NO. 022830
Ordinance authorizing the City Manager or his designee to execute an agreement with the
State of Texas, acting through its Texas Transportation Commission, setting forth
responsibilities for engineering, construction, and funding for the reconfiguration of two IH -
37 access ramps in connection with the development of a new Factory Outlet Center and
other related facilities on property abutting IH -37 between Sharpsburg Road and the Nueces
River.
An emergency was declared and the foregoing ordinance passed by the following vote:
Rhodes, Best, Black, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye";
Cooper and Heldenfels voting "No."
5.b. POSTPONED
reconfiguration of two III -37 ramps providing access to the proposed Factory Outlet Ccntcr
,n prel,erty-abi.tti..g III 37 b.,twccn Sharp
* * * * * * * * * * * * *
ref Vlot .
Mayor Rhodes opened discussion on Item 6, Annual Action Plan time table and amendment
to the CDBG guidelines.
Assistant City Manager Utter explained that originally staff had recommended that the
Annual Action Plan public hearing be held on April 22, 1997, which might be the first meeting of
the new City Council if a run-off election needs to be held on April 19th. Therefore, staff was
Minutes
Regular Council Meeting
January 28, 1997
Page 7
recommending that the public hearing instead be held on April 29th.
Responding to Council Member Martin, Mr. Utter said that if the Council approves, April
29th would be the date of the public hearing, at which time the Council can make their allocations
or they can wait another week to allocate the funds.
Mr. Utter added that during last week's discussion about youth programs and the problem
of gang violence, comments were made about making youth issues a priority with regard to CDBG
funds. He said staff was recommending that the CDBG guidelines under Item (d.) include the
following sentence: "In addition, youth and youth violence -combating projects shall he given
priority for CDBG funding."
Council Member John Longoria said the key to the CDBG guidelines was Item (a.): "No
Community Development Block Grant funds be authorized to applicant agencies for the support of
operating expenses." In reply to a question from Mr. Longoria, Mr. Utter said there are two
programs that are exempt from that restriction --Minority Business Opportunity Committee and the
Weed and Seed Program. Mr. Longoria suggested that the Council allow the Park and Recreation
Department to apply for CDBG funding for operational expenses for youth -oriented programs.
Mr. Utter explained that under CDBG guidelines, operating expenses can only be paid for
a maximum of three years for a non -city operated program. He said a possible program that staff
may recommend is to hire youth to participate in a clean-up program.
City Manager Hennings said he thought Mr. Longoria's suggestion concerning the Park and
Recreation Department could be brought forward within the current guidelines. Mr. Longoria said
that adding the proposed language in Item (d.) of the CDBG guidelines may mean that a capital
expense is funded (such as a new building), but that does not guarantee that youth are being
adequately served because many programs do not have the necessary operating funds.
Council Member McNichols pointed out that there are many programs with varying needs
that unfortunately do not receive CDBG funding every year, and many of them have already
prepared their grant applications in preparation for this year's allocation. He asked if the agencies
had been informed about this proposed shift in emphasis to youth -related projects. Mr. Utter replied
that staff had not informed the agencies because the Council had just discussed this issue last week.
He stressed that housing is still the first priority, and emphasis is still placed on public infrastructure.
He said this proposal does establish a new category for youth projects. Dr. McNichols said he would
support a proposal to reorganize fees in the Park and Recreation Department to make the youth -
oriented programs more affordable, but he said he did not think the CDBG guidelines should be
changed.
Council Member Martin said there is no question that youth issues have been and should
Minutes
Regular Council Meeting
January 28, 1997
Page 8
continue to be a priority of the city. However, he said, he wanted to be cautious about funding any
additional youth facility capital improvements; rather, the existing facilities could be improved.
Council Member Black said she and others have been working on the possibility of opening
a center on 19th Street to serve the neighbors. She said Lamar Elementary has established an
interesting program, albeit on a small scale, that offers a variety of services. Mrs. Black reiterated
that rather than build new facilities, the funds could be better spent by improving existing programs.
Council Member Heldenfels suggested a different wording on the proposed change to the
CDBG guidelines: "In addition, youth projects and those that combat youth violence shall be given
priority for CDBG funding."
Mr. Hennings said he understood the Council members' comments about city recreation
programs, and staff will make recommendations that they think will meet the Council's priorities,
whether or not the CDBG guidelines are amended.
Mayor Rhodes said she thought the problem is that there is such a limited amount of funding
available and so many important projects. She agreed with a comment made earlier by Mr. Martin
that changing the guidelines may give many people false hope about funding their projects. Mr.
Hennings said perhaps he should withdraw Item 6.b. (CDBG guidelines amendment) and ask the
Council to pass Item 6.a. (Annual Action Plan time table).
Council Member Betty Jean Longoria said she wanted to be sure that certain crime
prevention measures (improved street lighting) and other programs (day care centers) would continue
to receive CDBG funds.
Mayor Rhodes called for a voice vote on withdrawing Item 6.b. from the agenda, and the vote
was unanimous.
Responding to Mrs. Black, Mr. Utter said that Mr. David Seiler, City Traffic Engineer, said
all of the funds that were specified for lighting improvements in the 78415 ZIP code area have been
allocated. Mr. Utter said he would provide more information.
Mayor Rhodes called for comments from the audience on Item 6.a., and there were none.
City Secretary Chapa polled the Council for their votes as follows:
6.a. M97-027
Motion adopting an amendment to the timetable for the FY 97 Annual Action Plan that is
the application process for the Community Development Block Grant, HOME Investment
Partnerships and Emergency Shelter Grants programs.
Minutes
Regular Council Meeting
January 28, 1997
Page 9
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B.
Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Heldenfels absent.
6.b. WITHDRAWN
Rcsolution amcnding the politics and geticrai—xrles th.d pn,ecdu.es of tl.c City--
* * * * * * * * * * * *
*
Mayor Rhodes opened discussion on Item 7, taxicab rate increase.
City Manager Hennings explained that several months ago, a number of taxicab operators
petitioned the Council for an increase in the fares. Subsequently, staff analyzed their request and
conducted a survey of other cities' fares, and they believe the cab owners' request is reasonable and
therefore staff recommends approval.
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
Amending the Corpus Christi Code of Ordinances, Chapter 57, Vehicles for Hire, Section
57-135, Fares --Amounts, to increase taxicab fares to $1.50 for the first one-fifth mile and
thirty cents for each succeeding one-fifth mile; providing for severability; providing for
publication; and providing for penalties.
The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black,
Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on Item 8, amendments to the platting ordinance.
Mr. Utter explained that when the Padre Isles subdivision was created in the late 1960s, a
number of agreements were signed. Over the last five to six years, the Padre Isles area has
experienced a rapid increase in growth, with the exception of three subdivisions: Cape Summer Unit
1, Cape Summer Unit 2, and Commodore's Cove Unit II. He said when the Padre Isles Investment
Corporation went bankrupt, a number of agreements were terminated and many issues were left
unresolved. This platting ordinance amendment is intended to finalize those issues, including park
Minutes
Regular Council Meeting
January 28, 1997
Page 10
dedications among others. Mr. Carl Crull, Assistant City Manager for Public Works and Utilities,
briefly described some of the other proposed changes in the platting ordinance.
Council Member Heldenfels asked if there were any other outstanding agreements with the
city involving Padre Isles Investment, and Mr. Utter said there were not.
Mayor Rhodes called for comments from the audience, and there were none. City Secretary
Chapa polled the Council for their votes as follows:
8. FIRST READING ORDINANCE
Amending the Platting Ordinance, Section IV - Design Standards, Paragraph G, Parks and
Playgrounds, Subparagraph 2, by providing that Park Dedication for Cape Summer Unit I,
Cape Summer Unit II, and Commodore's Cove Unit II subdivisions shall be in accordance
with Section IV - Design Standards and that acreage requirements for such subdivisions
remains unchanged, all other park dedication requirements for Padre Island Investment
Corporation property having been previously satisfied by Padre Island Investment
Corporation and amending Section V - Required Improvements, Paragraph B, Minimum
Standards, Subparagraph 5, Water Lines by providing that any property previously owned
by Padre Island Investment Corporation as covered by the Water System Agreement
between the City and Padre Island Investment Corporation previously authorized by
ordinance, except Cape Summer Unit I, Cape Summer Unit II, and Commodore's Cove Unit
II is exempt from the payment of lot/acreage fees such fees having been previously satisfied;
providing that subdividers of property located in Cape Summer Unit I, Cape Summer Unit
II, and Commodore's Cove Unit II subdivisions may pay an additional tap fee of $480.00 per
one acre or smaller lot or for lots greater than one acre, $480.00 plus $1200.00 per acre per
fraction of an acre in excess of one acre at time of water tap in lieu of the lot/acreage fees of
Section V - Required Improvements; providing that such election to pay the additional tap
fee in lieu of lot/acreage fees shall only apply to the replat or vacation and new plat of those
certain subdivisions when such replat reduces the total demand on the water system and the
number of lots in the area covered by the replat or new plat; providing that subdivider of
Cape Summer Unit I, Cape Summer Unit II, and Commodore's Cove Unit II subdivisions
shall pay the costs of installation of water lines without reimbursement from the water trust
funds; providing for penalties; providing for publication; and providing for severance.
The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black,
Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
* * * * * * * * * *
*
**
Mayor Rhodes opened discussion on Item 9, Central Power and Light (CPL) fuel case.
Minutes
Regular Council Meeting
January 28, 1997
Page 11
City Attorney Bray said that CPL recently filed a fuel rate case proceeding with the Public
Utilities Commission (PUC). He stated that under the existing law, CPL has a "pass-through" for
their fuel costs and a fuel factor is set that establishes how much they bill consumers; however, that
factor is then adjusted (either up or down) depending on the exact cost of the fuel during a particular
period.
Mr. Bray said this case has two different aspects, and the case is precipitated by the recent
increase in natural gas prices. The first aspect is that CPL seeks to recover amounts that they have
under -recovered through November based upon the fuel factor and their contracts exceeding the fuel
factors, which is about $22 million. He said CPL also seeks to adjust the fuel factor upward based
on estimates that the natural gas prices will continue at this level; on an annualized basis, that
amounts to about $34 million. With regard to what CPL has under -recovered in the past, CPL
initially proposed to have a surcharge spread out over a 12 -month period. Now they are saying they
propose to cover that amount in a one-time surcharge which would be offset by a refund that they
are going to have to make to consumers as a result of the existing rate case that has been ongoing
in which the City of Corpus Christi has participated.
Mr. Bray added that last week the administrative law judge in the existing proceeding
determined that CPL's rates should actually be reduced by $10 million. Since last May, CPL had,
under bond, put into effect a rate increase of $70 million, and if the PUC upholds that, there will be
a refund to customers of about $80 million, which will probably occur in May. Consequently, this
proposal is that the fuel costs that CPL has under -recovered would be offset by the refund that they
will have to make to customers. He said in all probability, that will result in a one-time net refund
to customers.
Mayor Rhodes called for comments from the audience.
Mrs. Dorothy Spann said CPL chooses to recover costs, as anyone would if they thought they
could collect it. She said there is also a recommendation from a commission that these rates be
lowered. She added that CPL's inefficient plants dictate higher than necessary rates.
Mr. Bray stated that the recent ruling pertained to the rate case for an increase that CPL filed
more than a year ago. The Corpus Christi City Council and other cities voted to disallow the rate
increase, which has gone to the PUC. He said the cities' position was that there should be a rate
decrease of $50 million, and CPL's position was that there should be a rate increase of $70 million.
The administrative law judge has ruled that the rates should be reduced by $10 million, and that case
is now proceeding to the PUC, where the cities' will continue to assert that the rates ought to be
decreased. The fuel proceeding is completely separate from that proceeding, other than that they
may be completed at about the same time and they may be offset against one another.
City Secretary Chapa polled the Council for their votes as follows:
Minutes
Regular Council Meeting
January 28, 1997
Page 12
9. RESOLUTION NO. 022831
Resolution authorizing the City of Corpus Christi to intervene before the Public Utility
Commission of Texas in Docket No. 16856, Central Power and Light Company's request for
a fuel surcharge and rate increase; and authorizing participation with other cities through a
steering committee; and authorizing recovery of cities rate case expenses.
The foregoing resolution passed by the following vote: Rhodes, Best, Black, Cooper,
Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye"; McNichols absent.
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on Item 10, implementing raw water pass-through charges
for February's water bills. She noted that there were two amendments to the ordinance concerning
specific figures, and she made the following motion, which was seconded by Council Member Best:
10.a. M97-029
Motion adopting the following:
• Amending §55-50(a)(1)a. by changing the monthly minimum charge for an inside
city limits commercial customer with a 5/8" - 3/4" meter from $6.591 to $6.643 and
the minimum monthly charge for an outside city limit customer with an 8" or larger
meter from $504.397 to $504.345;
• Amending §55-50(a)(2)c. 1 . by changing the capacity charge for an inside city limit
capacity -volume for treated water customer from $12.434 to $12.432 per 1,000
gallons of maximum day capacity requirement.
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper,
Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
City Manager Hennings explained that when the Council adopted the raw water pass-through
ordinance in November 1996, staff used the data from the last fiscal year, with the understanding that
they would have to amend the ordinance once the actual raw water costs from November were
calculated. He said the goal is to have a revenue -neutral change that simply shows two lines on the
water bill --one being the pass-through cost of raw water, and the other being the cost for basic water
service.
Council Member Martin asked what the outcome would be if in February only half the
amount of water is consumed compared to January. Mr. Hennings said the calculation procedure
for the quantity of water uses a 12 -month "moving" average, so that a month-to-month change in
consumption will not cause a dramatic change in bills.
Minutes
Regular Council Meeting
January 28, 1997
Page 13
Responding to another question from Mr. Martin, Mr. Hennings said the Council had briefly
discussed the issue of when the new cost of raw water will be reflected in the rate. He said that also
pertains to the discussion of the deferred Choke Canyon debt payments, and alternative uses of the
Choke Canyon Reserve Fund. He said in about 11/2 to 2 years the cost of the water pipeline will begin
to be reflected in the water bills when the first debt payment is due.
Mr. Martin said the Council could discuss the possibility of establishing the city's repayment
schedule on the new bonds, heavily accelerated at the front end, to take direct benefit from the
federal action to defer payment on the Choke Canyon debt, instead of financing that. Mr. Hennings
said that the way the bond sales are structured so far is that the city would not have to make a debt
service payment until the water pipeline project is completed. Mr. Martin said that means they are
capitalizing interest, which is expensive, and he reiterated his desire to discuss these issues at length.
Mr. Hennings said staff could prepare information for the next Council meeting on the
following items: the structure of the bond sale and whether there is a way to avoid carrying the
interest cost; the way the cost of raw water will change as the costs of the pipeline project are
incorporated; and the other pending requirements, including the Lavaca-Navidad River Authority
and Garwood portions of the project.
Replying to a question from Mr. Martin, Mr. Hennings said with the exception of raw water
customers, the February water bills will be exactly the same as they would have been without the
pass-through cost of raw water ordinance. He said the raw water customers' rates are governed by
separate contracts, and two of those will be brought to the Council in the near future. A brief
discussion ensued about the raw water contracts and the effect of the deferral of the Choke Canyon
debt payments.
Council Member McNichols said this issue is part of a "work in progress" concerning the
acquisition of new water sources, and he said he did not think the Council should micro -manage
some of the decisions that need to be made. He briefly discussed how the water rates will change
over time. Mr. Hennings emphasized that the cost of raw water for single-family residential
customers is only 12% of the total bill. A short discussion followed.
Mayor Rhodes called for comments from the audience,
Mr. J.E. O'Brien, 4130 Pompano, said the city has been selling raw water below cost for an
extended period of time. He said in spite of that fact, the city had a net income from its utilities of
$14.4 million last year, which was an increase from the preceding year. He said the cost of raw
water is expected to triple, and when the Council approved the pass-through cost for raw water, he
said they ignored the voters who rejected the pass-through concept in 1991. Mr. O'Brien also
requested a copy of the preliminary statement for the bond sale scheduled for February 19, 1997.
Minutes
Regular Council Meeting
January 28, 1997
Page 14
Mr. Neal Trolinger, 337 Stages Dr., said the Council is selling water to industrial users who,
since the Lake Texana pipeline project has begun, have announced plans for expansion of their
industries. He said the area's rates for industrial water use are far below the state average. He said
a judge did away with the City Charter's 6% rate cap, and he questioned the Council's intentions.
Referring to Mr. Trolinger's comments, Mr. Hennings stated that by far the majority of the
industrial use of water is by the refineries and industries located along the ship channel. And
according to the cost of service study that was conducted last year, they are paying their fair share --
they are paying approximately what it costs the city to serve them with water. The fact that those
rates are lower than the average rates in the state is a credit to this community's water efficiency.
Mr. Hennings added that there has been some confusion with regard to the customers who
purchase raw water. They are: the cities of Alice, Mathis and Beeville, the San Patricio Municipal
Water District, Hoechst -Celanese in Bishop, and Koch Refinery for a small portion of its water
requirements. He said those raw water purchases are made under the terms of long-standing
contracts that were based on prior fiscal year actual data, and they have not kept up with changes that
have occurred in the last few years, resulting in an under -collection for those contracts.
Mr. Martin asked that under the pass-through approach, who would bear a disproportionate
amount of the cost in relation to their prior bills. Mr. Hennings replied that the raw water customers
will see their bills more than triple, the large water users along the ship channel will have increases
of at least 40%, and the bills of single-family residential customers will increase about 25%.
Responding to Council Member Heldenfels, Mr. Hennings and Mr. Bray said that in 1991
there was a proposition to amend the City Charter to exempt debt service, federal and state mandates,
and pass-through costs from the 6% rate cap; however, that proposition was defeated.
Dr. McNichols said that until the cost of service study was completed, it was not known that
there was a problem with under -payment by raw water customers. Once that was determined, those
inequities were corrected.
City Secretary Chapa polled the Council for their votes as follows:
10.b. ORDINANCE NO. 022832
Ordinance amending Section 55-50 of the Code of Ordinances, City of Corpus Christi
regarding water rates and raw water cost adjustment.
An emergency was declared and the foregoing ordinance passed, as amended, by the
following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, Martin, and
McNichols voting "Aye"; Heldenfels voting "No."
Minutes
Regular Council Meeting
January 28, 1997
Page 15
Mayor Rhodes referred to a comment made by Mr. O'Brien concerning the Council's
chances for being reelected on April 5th. She said she has been through five elections, and prior to
every one of them, Mr. O'Brien tells the Council that the public will retaliate against them for
decisions they have made. The Mayor said she has found that the voters are not swayed by single
issues or threats.
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on Item 11, Municipal Court warrants.
City Manager Hennings noted that staff had sent to the Council a report about Municipal
Court procedures and fine collections, and some initiatives that staff intends to propose. The report
included the results of a visit by Chief Judge Rodolfo Tamez, Court Administrator Barb Sudhoff,
and Assistant City Manager Jorge Garza to the City of El Paso's Municipal Court to review their
procedures.
Mr. Hennings said the first initiative staff is recommending is Item 11.b., a proposal whereby
the Texas Department of Transportation would flag motor vehicle registration records of owners
with Municipal Court warrants. He also noted that the Council in the past had a Council Committee
on the Municipal Court, and he suggested that that committee meet with staff on a regular basis to
review the court's status and to bring recommendations to the full Council. Mayor Rhodes reiterated
that Council Member Martin chairs that committee, and Council Members John Longoria and Betty
Jean Longoria are members.
Mr. Hennings stated that Item 11.b. is an ordinance that would authorize the city to enter into
an agreement with the Texas Department of Transportation (TXDOT), whereby the city would
provide TXDOT a list of those persons who have outstanding warrants for Municipal Court; in turn,
TXDOT would flag the motor vehicle registration records of such persons. He said staff will present
a proposal at the next meeting for an agreement with Nueces County in which they would inform
the persons with outstanding warrants that they would have to clear their warrants before they could
renew their registrations.
Responding to Council Member Best, Mr. Hennings said that if a person had an unsatisfied
obligation at Municipal Court, either to appear for a trial or to pay a fine that has been levied, then
a warrant could be issued for that person's arrest. Council Member Martin said the process of
issuing a warrant is a very long and involved one, and the committee needs to address that.
Council Member Heldenfels said he thought that Municipal Court should be administered
by one person, as opposed to having three departments. Mr. Hennings replied that the City Manager
is responsible for the Administration and Prosecution departments of the Court, while the Court
judges are appointed by the Council and are not responsible to the City Manager. He added that staff
Minutes
Regular Council Meeting
January 28, 1997
Page 16
has some solid initiatives it will propose, and they have already made much progress in improving
the administration of the Court.
Referring to the ordinance under Item 11.b., Council Member Black asked that the cost to
the city of 12 cents per transaction be charged back to the person with the outstanding warrant, rather
than to the city. Mr. Martin said the committee could evaluate that suggestion.
Mayor Rhodes called for comments from the audience, and there were none. City Secretary
Chapa polled the Council for their votes as follows:
11.b. ORDINANCE NO. 022833
Ordinance authorizing the City Manager or his designee to execute an Interlocal Agreement
with the Texas Department of Transportation to flag motor vehicle registration records of
owners with Municipal Court warrants.
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 announced that the scheduled closed session regarding requirements of the
City's franchise with TCI Cablevision of Texas Inc. would not be held.
City Manager Hennings then distributed a copy of a letter dated January 28, 1997, from Mr.
Randy Grimes, System Manager for TCI Cablevision, to City Attorney Bray. Mr. Hennings stated
that the Cable Communications Commission is working with staff on developing a proposal to audit
TCI, which is called for in the franchise agreement.
Referring to Mr. Grimes' letter, Mr. Bray said that the local TCI office had recommended
to their Denver office that WGN be reinstated on the cable system in Corpus Christi. TCI requested
that the Council waive the statutory 30 -day period of notice so that TCI can reinstate WGN on
January 29, 1997.
Council Member Best made a motion to waive the 30 -day notice, as requested by TCI, so
as to reinstate WGN in place of Home and Garden T.V. on Channel 54 on TCI Cablevision in
Corpus Christi. The motion was seconded by Council Member Martin and it passed unanimously.
* * * * * * * * * * * * *
Minutes
Regular Council Meeting
January 28, 1997
Page 17
Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and
ordinances from previous meetings on Items 12 through 16, and Council Members and a citizen
requested that Items 12 and 13 be withheld for discussion.
City Secretary Chapa polled the Council for their votes and the following were passed:
14. ORDINANCE NO. 022835
Ordinance closing and abandoning a 4 -square foot area of a 5 -foot wide utility easement in
Lot 21, Block 4, Inverness - Unit A; subject to compliance with the specified conditions; and
the owner replatting the property within 180 days at the owner's expense.
An emergency was declared and the foregoing ordinance passed by the following vote:
Rhodes, Best, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting
"Aye"; Black absent.
15.a. FIRST READING ORDINANCE
Authorizing the City Manager, or his Designee, to execute a four-month lease beginning
February 18, 1997 and ending at midnight on June 30, 1997, with Lady Lex Museum on the
Bay Association for berthing the U.S.S. Lexington, operating a Museum, and related uses,
in a portion of the submerged waters of Corpus Christi Bay, and on an adjacent portion of
Corpus Christi Beach in consideration of $1 per year; and providing for severance.
The foregoing ordinance passed on first reading by the following vote: Rhodes, Best,
Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Black
absent.
15.b. FIRST READING ORDINANCE
Authorizing the City Manager, or his Designee, to execute a five-year lease beginning July
1, 1997 and ending midnight on June 30, 2002, with Lady Lex Museum on the Bay
Association for berthing the U.S.S. Lexington, operating a Museum, and related uses, in a
portion of the submerged waters of Corpus Christi Bay, and on an adjacent portion of Corpus
Christi Beach in consideration of $1 per year; and providing for severance.
The foregoing ordinance passed on first reading by the following vote: Rhodes, Best,
Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Black
absent.
Minutes
Regular Council Meeting
January 28, 1997
Page 18
16. ORDINANCE NO. 022836
Amending the Code of Ordinances, Chapter 53 - TRAFFIC, Article VIII - Schedules, Section
53-251, Schedule II - Arterial and Collector Through Streets.
The foregoing ordinance passed on second reading by the following vote: Rhodes, Best,
Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Black
absent.
* * * * * * * * * * * * *
Mayor Rhodes opened discussion on Item 12, purchase of heavy trucks.
Mayor Rhodes called for comments from the audience.
Mr. John Hartley questioned the purchase of these trucks, saying he thought the city was
buying many pieces of expensive equipment but using them inefficiently. He said the money should
be used instead to purchase additional fire equipment.
Council Member Martin said the city is not replacing as many pieces of equipment as it
should be, and a regular replacement schedule is very important. He pointed out that last week the
Council had discussed the need to purchase two rescue/transport vehicles, and Mr. Hennings had
said that staff would make a recommendation on how to do that.
City Secretary Chapa polled the Council for their votes as follows:
12. M97-028
Motion approving the purchase of heavy trucks in accordance with Bid Invitation No. BI -
0061 -97 from the following based on low bid. Twenty units are budgeted in the 1996-97
capital outlay; three units are budgeted as lease purchase.
Padre Ford
Corpus Christi
3 Units
$88,100.00
Crosstown Ford
Corpus Christi
7 Units
$306,127.75
Power Equip. International
Corpus Christi
13 Units
$617,945.80
Grand Total of Awards: S1,012,173.55
The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B.
Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Heldenfels voting "No."
Minutes
Regular Council Meeting
January 28, 1997
Page 19
* * * * * * * * * * * *
*
Mayor Rhodes opened discussion on Item 13, aviation excise tax and grant program.
Responding to Council Member Martin, Ms. Bonnie Allin, Director of Aviation, said this
item did not pertain to the passenger facility charges; rather, it is the ticket tax that Congress
established in the 1970s that funds the Aviation Trust Fund, which funds airport grants and the
Federal Aviation Administration's operations.
Mayor Rhodes called for comments from the audience, and there were none. City Secretary
Chapa polled the Council for their votes as follows:
13. RESOLUTION NO. 022834
Resolution urging the U.S. Congress to reenact an aviation excise tax to fund the Aviation
Trust Fund and appropriate funds to airport improvement program grants for fiscal year 1998
at no less than the fiscal year 1997 amount of $1.46 billion annually.
The foregoing resolution passed by the following vote: Rhodes, Best, Black, Cooper,
Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye."
* * * * * * * * * * * * *
Mayor Rhodes called for the City Manager's report.
Ms. Barb Sudhoff, Director of the Municipal Court's Administration Department, said that
over the last two years the Court has made many improvements regarding juvenile cases. She
explained that juvenile cases have been under the Court's jurisdiction since 1989, and the records
had been maintained manually. Recently, the Court implemented a juvenile data base project in
which staff is entering all juvenile records (both active and disposed) into the Court system, which
allows for tracking, for reporting to the Department of Public Safety, and for making timely referrals
to the Juvenile Justice Center.
Ms. Sudhoff said that in addition, the Police Department asked Court officials if a recognized
gang member who met the "failure to appear" criteria could be given warrant -issuance priority. The
legality of that request was reviewed, and it was determined that that would be possible. She said
that the Police Department provides a list to the Court of those defendants who have received a
citation and who are also classified as recognized gang members. Once Court staff determine that
a person meets the criteria, they notify the Police Department and they, in turn, proceed with
enforcement measures.
Minutes
Regular Council Meeting
January 28, 1997
Page 20
Mr. Hennings then introduced Mr. Eduardo Garai-1a as the new Water Superintendent. He
said Mr. Garafia has worked in the Water Department for 18 years, and he will provide the necessary
leadership to meet the upcoming challenges. Mr. Garafia thanked Mr. Hennings and Mr. Crull for
their support, and he said the goal of the Water Department is to provide water to the public and to
be responsive to their needs.
Mr. Hennings also reported that beginning on January 28th, the city would begin to pass
through 634 acre-feet of water from Lake Corpus Christi to Nueces Bay, since some small inflows
had been received in January. He said city staff has been reviewing language with staff from the
Texas Natural Resource Conservation Commission (TNRCC) on a request by the city to suspend
water releases during a drought. He said he hoped that the TNRCC could now schedule
consideration of that matter at an upcoming meeting in Austin.
Mayor Rhodes questioned the status of the effluent diversion pilot project. Mr. Hennings
said there were some proposals by the San Patricio Municipal Water District to reuse wastewater
effluent in industrial applications, which would mean that the effluent would no longer be released
into the bay. The TNRCC has taken a position that by decreasing the amount of wastewater return
flows, the city would have to make up those amounts in additional freshwater releases. Therefore,
those projects are on hold until this issue can be resolved. Mr. Crull added that the pre-bid meeting
for the effluent diversion pilot project would be held this week and bids will be received Feb. 5th.
Mr. Hennings pointed out that there would not be a Council meeting on February 4th. Items
scheduled for the February 11th meeting include structuring of the pipeline bonds; the ordinance that
will eliminate the decreasing block rates for large industrial water customers; the first two new raw
water contracts with the San Patricio Municipal Water District and Hoechst Celanese in Bishop; a
public hearing on Drainage Channel 31 impact fees; and five zoning cases.
* * * * * * * * * * * * *
Mayor Rhodes called for Council concerns and reports.
Council Member Martin asked if a public hearing by staff would be held prior to February
11th on the Drainage Channel 31 impact fees. Mr. Crull replied that a public hearing before the
Planning Commission was held on January 22nd and no one appeared regarding that issue. Mr.
Martin commented on the proposed effluent industrial use projects, saying that if the city was able
to receive multiple credit for wastewater, having more of that product would be to the city's
advantage with regard to the release issue. Mr. Martin also addressed the earned income tax credits
and he suggested that Mr. Hennings possibly bring in a counseling service to assist city employees
in determining their eligibility for those tax credits.
Council Member Black welcomed Mr. Garafia, and she complimented the students and
Minutes
Regular Council Meeting
January 28, 1997
Page 21
parents at Lamar Elementary, saying the students were well-behaved during a recent visit there.
Council Member Betty Jean Longoria asked about a rumor that Crossley and Oak Park
elementary schools may be closed and combined into one school. Mr. Hennings said staff would
contact the Corpus Christi Independent School District and provide the information to the Council.
* * * * * * * * * * * * *
Mayor Rhodes called for petitions from the audience.
Mr. Buck Sosa, President of the local Firefighters Association, distributed copies of a portion
of the impasse procedures. He said that according to the procedures, the parties shall request a list
of seven neutrals (from the American Arbitration Association), and the mediator and fact -finder shall
be selected within five days after receipt of the list from the AAA. He said that the contract that will
be negotiated will only be a one-year contract, and the Firefighters Association will soon be back
to negotiate a future contract to address the items he said were not addressed this time.
Mr. Mike Sullivan, 1021 Barracuda, said the ladder truck at Fire Station 7 where he works
is the only ladder truck for the south side of the city, and its response area includes the area from
Ayers to the city limit line all the way to Padre Island. He also described manpower and equipment
levels recommended by ISO, and he briefly discussed historical and current equipment levels in
Corpus Christi's Fire Department.
Mrs. Dorothy Spann discussed the street lighting project in the 78415 ZIP code area, saying
that it is a deterrent to crime. She added that she felt youth as a group will never have a "level
playing field" as compared to senior citizens with regard to funding for programs because youth are
not a voting bloc.
There being no further business to come before the Council, Mayor Rhodes declared the
Council meeting adjourned at 5:10 p.m. on January 28, 1997.
* * * * * * * * * * * * *