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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. * * * * * * * * * * * * *