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HomeMy WebLinkAboutMinutes City Council - 03/18/1997I 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 March 18, 1997, which were approved by the City Council on March 25, 1997. WITNESSETH MY HAND AND SEAL, this 25th day of March, 1997 Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting March 18, 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 Rev. Jose Gutierrez, of Sacred Heart Church, 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 March 4, 1997, and there being no corrections, she proclaimed them approved as presented. The Mayor then awarded certificates of commendation to three Solid Waste Services employees, Art Rivas, Robert Puentes and Jose Luna, in recognition of their heroic actions to ensure the safety of a family's home from fire on March 11, 1997. Fire Chief J.J. Adame also presented the three employees with certificates of appreciation from the Corpus Christi Fire Department. * * * * * * * * * * * * * Mayor Rhodes referred to the presentations on the day's agenda. San Patricio County Judge Josephine Miller distributed a brief status report on the Corpus Christi Bay National Estuary Program. She noted that she and others (including Assistant City Manager Tom Utter) are members of the estuary program's Ad Hoc Committee on Implementation, and they intend to keep local government officials informed of their progress. Judge Miller said that Mayor Rhodes is a member of the program's Policy Committee, and she said that the Council Minutes Regular Council Meeting March 18, 1997 Page 2 members are welcome to attend their meetings. The next presentation was made by Mr. John Shepherd of Collier, Johnson & Woods on the FY 95-96 Audit Report. He thanked staff for their cooperation, particularly Finance Department staff members Mike Harty and Audre Debler. Mr. Shepherd discussed the purpose and structure of the Comprehensive Annual Financial Report. He noted that the report contains four sections: introduction, financial section, single -audit section, and statistical tables. Mr. Shepherd described his firm's role as auditors for the city. He said they plan and perform an audit to obtain a reasonable --but not absolute --assurance that the general purpose financial statements are free of material misstatement. He said that since the firm only performs tests of data, and do not examine every transaction, there is some risk that material errors and irregularities, or illegal acts such as fraud, could exist and not be detected by them. To protect itself, the city has its own internal control structure. Mr. Shepherd described many of the tests that Collier, Johnson & Woods performed during their audit engagement, as well as the reports that they issued. The first report was an unqualified opinion on the schedule of federal and state financial assistance. Two other reports dealt with the city's internal control, one of which noted a reportable condition (but not a material weakness) in the city's timely reconciliation of bank accounts. Mr. Shepherd said four reports deal with the city's compliance with laws, regulations, contracts and grants, and with respect to the items that the auditors tested, their procedures disclosed no material instances of non-compliance with the general requirements of federal financial assistance. He said the auditors also determined that the city complied with all the material requirements of their major programs He noted that the auditors' final document was the management letter, which contains their observations and recommendations about the city's internal controls --as well as city staff's responses to those issues. Council Member Martin asked staff to prepare a summary sheet of the fund balances that were used for the purpose of adopting the budget, as well as the actual fund balances. Responding to a question from Mr. Martin, City Manager Hennings said some changes were made in how the city accounts for funds in Solid Waste Services; however, the revenues and expenditures were very close to the amounts that had been budgeted. Mr. Martin also referred to the auditors' management letter. He noted that some issues had been raised by the auditors a second time: the processing of I-9 forms, and the reviewing of hotel/motel tax reports. Mr. Martin also asked about the auditors' concerns about the timely preparation of bank reconciliations. Mr. Shepherd replied that he had discussed that issue with staff and had been assured that those are up to date at this point. Council Member John Longoria asked about the auditors' observation concerning zero balance accounts as discussed in their management letter. Mr. Shepherd said the auditors noted that Minutes Regular Council Meeting March 18, 1997 Page 3 the use of zero balance accounts was a new procedure, which caused some problems this year. He said they did not recommend the city do away with them because they do invest money, but they recommended that the procedures be evaluated to ensure efficiency. Mr. Hennings said staff would review the use of zero balance accounts. Mr. Longoria also asked about the processing of I-9 forms, particularly for Police Department employees. Mr. Hennings said he would ensure that this issue was resolved and removed from the audit report. Responding to another question from Mr. Longoria, Mr. Hennings said staff would begin budgeting for "drag -up" pay (which includes accumulated vacation and sick leave benefits that are paid to retiring employees). Mr. Longoria also questioned the function of the Internal Audit Department. Mr. Shepherd said that Internal Audit is a very important part of the overall internal control structure. He said that by regularly conducting tests on such things as cash procedures, a deterrent is put in place and people are aware that procedures are being monitored. Mr. Hennings added that the Internal Audit Department does have a work plan, and the auditors recommended that Internal Audit staff focus even more on certain "high-risk" areas. Mr. Hennings said he did not disagree with that recommendation, and it was a question of allocation of resources. He added that the city's Internal Audit Department, which consists of three employees, has a good reputation in the city and they are very thorough in their work. Council Member McNichols said that unless an accounting problem was found to exist with the zero balance accounts, he felt that they should be continued. Council Member Heldenfels asked why the auditors again raised the issue of the hotel/motel tax reports. Mr. Hennings said that an internal audit of those reports was scheduled to be conducted; however, the internal auditors had to be reassigned because of emergencies which arose and that audit was not conducted. He said he intends to see that this situation is resolved and not cited in next year's audit report. In response to Mr. Heldenfels, Mr. Shepherd said the auditors' comments in the management letter about the hotel/motel tax reporting refers to auditing the hotels and motels to ensure that they are paying the city enough money. * * * * * * * * * * * * * Mayor Rhodes announced that Item 7, zoning case No. 297-3, Bruce Callaway, was being postponed for one week at the request of the applicant. In addition, she said that under Article II, Section 15 of the City Charter, the City Council is required to have a two-thirds vote for passage of most actions beginning 30 days before the regular election. Council Member Martin inquired which actions required a two-thirds vote. City Secretary Chapa replied that it included appropriation of Minutes Regular Council Meeting March 18, 1997 Page 4 monies not included in the budget, contracts or obligations, franchises, and zoning or rezoning items. The Mayor then opened discussion on Item 2, mineral lease bid opening. City Manager Hennings stated that the City Charter requires that bids for leases of mineral rights be opened at the City Council meeting. He referred to a map indicating the location of the mineral lease. Mr. James Conn, Petroleum Superintendent, stated that the City Secretary's Office had received one bid from Transquest Inc. as well as a cashier's check in the amount of $397.43, which is the minimum bid. He said since it met the minimum bid, staff was recommending that the lease be awarded to Transquest. Responding to Council Member Martin, Mr. Corm said that this lease does not grant Transquest any use of the surface; however, it does not prohibit it and the company could apply for a surface use if they wished. Mayor Rhodes made a motion to amend Item 2.b. to include the name of the company being awarded the bid, Transquest Inc., and the amount of the bid, $397.43; the motion was seconded by Council Member McNichols. City Secretary Chapa polled the Council for their votes on the motion to amend, and it passed as follows: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." Mr. Martin pointed out that the lease included a 20% royalty. City Secretary Chapa polled the Council for their votes as follows: 2.b. FIRST READING ORDINANCF Authorizing the City Manager or his designee to execute a three year oil and gas lease with Transquest Inc. on two tracts comprising 5.299 acres out of Tracts 2-B, 3-B, and 4, M.M. Gabriel Partition of the Guggenheim and Cohn Farm Lots, underlying the Gabriel Terrace Drainage Ditch located near the intersection of Padre Island Drive and Old Brownsville Road, for a minimum bid of $75.00 per acre, $10.00 per acre delay rentals, 20% royalty. The foregoing ordinance passed on first reading, as amended, by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." * * * * * * * * * * * * * Minutes Regular Council Meeting March 18, 1997 Page 5 Mayor Rhodes opened discussion on Item 3, Downtown Management District (DMD) lighting improvements. Mr. R.H. Shackelford, Director of Engineering Services, explained that this project is the first of three phases to upgrade the street and sidewalk lighting in the downtown business district. It is supported in the South Central Area Development Plan, which the Council had approved in the past. He said city staff has assisted the DMD in developing the overall plan, in conjunction with Central Power and Light (CPL). He explained that Phase 1 of the project involves installing 222 decorative, 14,000 -lumen metal halide lights throughout the subject area, which will supplement the existing 146 street lights. Phases 2 and 3 will involve an additional 304 fixtures, as well as removal of the existing 146 fixtures. He said since the DMD is a governmental entity which is bound by the competitive bidding procedures, and since it does not have a franchise agreement with CPL, it was determined that there were substantial cost savings if the city administered the project through CPL. Mr. Shackelford pointed out that the DMD will reimburse the city for all costs associated with the project. He said staff proposes that the city absorb the additional operating costs, which for Phase 1 would be $38,000 per year. Mr. Gordon Landreth, Chairman of the DMD Board, further described the project. He said the ultimate goal is to replace all existing light systems with a fully coordinated approach to downtown lighting, which would include street lighting, traffic lighting, and traffic signalization. He used visual aids to describe the proposed light fixtures and their locations. Mayor Rhodes said that for the amount of money the DMD is proposing to spend, she did not think that any other project would provide the same benefits and improved safety in the downtown area that this one will. Responding to Council Member Martin, Mr. Landreth said that ultimately the new lights, taking in both sides of the street, would provide 140,000 lumens of light between intersections downtown. Mr. Martin asked when they anticipated all three phases would be completed. Mr. Landreth replied that if Phase 1 is approved, it will be completed by the end of 1997; there is no timetable yet on the other two phases. Mr. Martin said it is important that the project be completed as planned. In reply to another question from Mr. Martin, Mr. Shackelford said that the height of the new poles and their proximity to each other will provide the greatest coverage of lighting to that area. Council Member Betty Jean Longoria said she thought this was a very worthwhile project, and she asked Mr. Landreth to explain how the monies for the project were raised. He stated that the DMD's funds, whether they be raised for the Gateway Project or banners or landscaping, are Minutes Regular Council Meeting March 18, 1997 Page 6 obtained through taxes that have been petitioned and approved by property owners in the downtown area. Mayor Rhodes pointed out that DMD members pay those taxes in addition to the other taxes they have to pay. Mr. Landreth said all of the funds are used to enhance the downtown area. Council Member McNichols said he did not object to the project itself, but he said from the city's perspective, it involved an increase in annual operating costs. In response to a question from Dr. McNichols, Mr. David Seiler, City Traffic Engineer, said the power costs for operating the municipal street lighting system are about $1.8 million, which includes the city's 50% share of expressway lighting. Dr. McNichols also asked who would be responsible for replacing the decorative light poles if they are damaged or destroyed in a hurricane. Mr. Seiler said CPL will own and maintain this street lighting system; consequently, replacement or repair of the poles will be the responsibility of CPL. Mr. Landreth added that CPL will be able to obtain the poles at a savings. Dr. McNichols said the Council members representing the city's five single -member voting districts frequently receive complaints from citizens about insufficient lighting in their neighborhoods. He said that in the next year, the city will have to find some way to fund additional lighting in the five districts. Council Member Heldenfels asked what would happen to this project if the DMD was decertified. Mr. Landreth explained that the DMD was sued, it won the case, and there has been an appeal. Mr. Heldenfels said that was not his understanding of the situation. Mr. Landreth added that the funds for Phase 1 are available now, and Phases 2 and 3 are being proposed to be included in the Community Project Partnership (CPP). Council Member Black thanked the DMD for their efforts, adding that this project will benefit the whole community and will improve tourism. Mayor Rhodes called for comments from the audience. Mrs. Dorothy Spann, 502 Del Mar, said she thought there was a proposal on the agenda several months ago to move the street light operating costs out of the city's operating budget. Mr. Hennings said there was no such proposal. Mr. Neal Trolinger, 337 Stages Dr., said he agreed with Dr. McNichols' comments about lighting needed in other areas of the city. He commended the downtown businesses for working to improve that area. He expressed concem about the additional costs and water usage associated with the Gateway Project. Mr. Phil Rosenstein said he also agreed with Dr. McNichols about inadequate street lighting, and he questioned the proposal to include the costs for Phases 2 and 3 of the downtown street lighting project in the CPP. Minutes Regular Council Meeting March 18, 1997 Page 7 Mayor Rhodes pointed out that the funds for Phase 1 of the lighting project were being provided by the DMD. Council Member John Longoria said that some of the city's districts are eligible for Community Development Block Grants for such projects as street lighting, in addition to a large grant for lighting in the 78415 ZIP code area. Mrs. Black said it was not true that the Council members ignored requests for additional lighting in other parts of the city. Mr. Abel Alonzo said that it was beneficial that different entities were working on the downtown street lighting project. Mr. Jimmie Till said he was not opposed to the lighting project downtown. City Secretary Chapa polled the Council for their votes as follows: 3.a. M97-061 Motion authorizing the City Manager or his designee to execute an agreement with the Corpus Christi Downtown Management District and Central Power & Light Company for the construction of Phase 1 of proposed sidewalk and street lighting improvements in the Downtown Business District at a cost not to exceed $401,598. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Heldenfels voting "No." 3.b. ORDINANCE NO. 022867 Ordinance appropriating $401,598 from the Corpus Christi Downtown Management District for Phase 1 of sidewalk and street lighting improvements in the Downtown Business District in the No. 102 General Fund - Street Lighting Activity; amending Ordinance No. 022643 which adopted the FY 96-97 budget, by adding $401,598 to the No. 102 General Fund - Street Lighting Activity. An emergency was declared and the foregoing ordinance 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 March 18, 1997 Page 8 Mayor Rhodes called for a 10 -minute recess. * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 4, wastewater facilities implementation plan for the Oso/Greenwood service areas. Mr. Shackelford explained that in January 1996, the City Council authorized a contract with Urban Engineering to study the Oso/Greenwood wastewater service areas and to develop a plan of action to provide sufficient and effective wastewater facilities through the year 2025. Referring to a map, he pointed out the various wastewater service areas within the City, adding that the Alison, Laguna Madre and Whitecap Basins were outside the scope of the study. Mr. Shackelford said the study required Urban Engineering to do three things: verify the previously identified requirement for an additional 7 million gallons per day (MGD)of treatment capacity within the study area, then determine when and where the additional capacity should be located; review the wastewater collection systems and identify the work required to ensure the systems are capable of meeting all needs through the study period; and review the sludge stabilization and handling procedures and recommend changes as appropriate. The Director of Engineering discussed other aspects of the study: the current expansion of the Greenwood Plant from 6 MGD to 8 MGD would be completed prior to commencement of the implementation plan; the location of the additional treatment capacity did not necessarily have to be that of the previously identified Southside Plant; and the diversion of treated effluent for other beneficial uses, such as the Nueces Estuary and industry, should be considered. Mr. Shackelford said the consultant developed the following conclusions: that 6 MGD rather than 7 MGD treatment capacity was required; that $9.5 million in collection system improvements would be necessary; and that the City should continue to investigate beneficial uses for sludge disposal, such as composting, which is now under development, and agricultural land application, or combinations of both. Finally, it was noted that the Greenwood Plant, due to its closer proximity to the Elliott Landfill and the future landfill, could be the most viable and cost-effective location for sludge treatment and handling. In addition, four alternative plans were developed, and it was determined that Alternative No.2 provided the most benefits and was cost effective. He said that the recommended plan, which incorporates the concept of "regulated flow," provides for the ultimate expansion of the Greenwood plant to accommodate Broadway flows as well as projected growth in the Oso/Greenwood service areas. Mr. Shackelford described specific benefits of the recommended plan: satisfies all projected Minutes Regular Council Meeting March 18, 1997 Page 9 growth through 2025; saves substantial operation and maintenance costs ($700,000 per year for Broadway) and it avoids the additional incremental costs that a fourth treatment plant would generate (about $335,000 per year); provides greater potential to optimize the beneficial reuse of treated effluent; reduces sludge handling costs and overall capital improvement costs; and eliminates the Broadway Plant and makes the area available for other use. He then referred to a chart to further explain how the recommended plan would be implemented from now through 2025 using a combination of gravity diversions and regulated flow. He also compared the recommended plan to the current plan. Mr. Shackelford emphasized that while staff is indicating that the Broadway diversion be implemented immediately, it is not an indication of urgency from a systems operations perspective; rather, it is the recognition that over $700,000 per year can be saved as soon as the diversion is completed. He concluded that staff believes the recommended plan is superior to the current plan for the reasons indicated and they urge the Council's approval. Council Member Martin said he thought the recommendation was very comprehensive and well done. He asked if the expansion of Greenwood could be done incrementally. Mr. Shackelford replied that Greenwood would be expanded in "treatment trains," which would allow for greater flexibility. A discussion ensued concerning costs associated with the diversion of flows from the Broadway plant. Mr. Martin said the need for capital improvements at the Broadway plant should dictate the timing of that plant's diversion. Mr. Martin said the study indicated that there was no need to build the Southside Plant during this planning period because of cost savings that can be realized, and Mr. Shackelford concurred. Council Member McNichols also commended the recommended plan and discussed beneficial aspects of it, including cost savings and effluent diversion. Responding to Council Member Best, Mr. Shackelford said the Oso treatment plant would not be expanded during the planning period through 2025. Dr. Best asked about growth in the area of The Lakes subdivision. Mr. Shackelford said that growth would be accommodated by both the Oso and Greenwood plants. In reply to Council Member John Longoria, Mr. Shackelford said staff expects to complete the diversion of flows from the Carolyn Heights area by 2000, and the engineering for the expansion of the Greenwood plant would begin in 1998, with construction completed by the end of 2000. Responding to another question from Mr. Longoria, Mr. Shackelford said once the Broadway plant is closed and the site is cleared, the city intends to ensure that the land is productively used. Council Member Betty Jean Longoria noted that odor has been a problem at the Broadway plant for some time, in addition to the cost of operating the 60 -year-old facility. She also Minutes Regular Council Meeting March 18, 1997 Page 10 commended the recommended plan. Responding to Council Member Black, Mr. Shackelford said that if the plan is adopted and implemented as indicated, the Broadway plant is projected to be closed by the end of 2001. She said there were problems on Corpus Christi Beach during periods of high tide. Mr. Shackelford said that was a collection system problem that was not addressed in this plan, but it can be as part of the city's overall program to reduce inflow and infiltration. Mayor Rhodes called for comments from the audience. Mr. John Hartley, 3925 Sandy Hollow, asked about the status of the effluent diversion project in order to receive credit for providing water into the Nueces Estuary. He added that the northwest area is expanding, which is the true north and west gate of the city. In response, Mr. Shackelford said the design for the effluent diversion project has been completed and bids have been taken; in the near future staff will bring a recommendation to the Council for an award for the contract. Mrs. Dorothy Spann reviewed elements of the recommended plan as presented by Mr. Shackelford. She said a comment was made about not rushing the diversion and eventual closure of the Broadway plant. She said the plant has produced an overly oppressive smell and has resulted in safety and health problems in that area. Mr. Hennings said this plan should not be construed as delaying the closure of the Broadway plant. He said this schedule is very ambitious and involves many major elements. Mr. Martin said the staff's recommendation is to accelerate the closure of the Broadway plant, not to delay it. In addition, staff will be increasing odor control measures at the Broadway plant in the interim. City Secretary Chapa polled the Council for their votes as follows: 4. M97-062 Motion approving the Oso/Greenwood Service Areas Wastewater Facilities Implementation Plan (1997) and adopting Alternative No. 2, including the diversion of Broadway Plant flows to the Greenwood Plant, as the plan of action to provide sufficient and cost-effective treatment facilities through the year 2025. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." * * * * * * * * * * * * * Minutes Regular Council Meeting March 18, 1997 Page 11 Mayor Rhodes opened discussion on Item 5, Corpus Christi Beach restoration. Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 5.a. M97-063 Motion authorizing the City Manager or his designee to sign a grant contract with the Texas General Land Office in the amount of $86,797 for the purpose of restoring Corpus Christi Beach to 1977 elevations to the extent possible. The foregoing motion passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." 5.b. ORDINANCE NO. 022868 Ordinance appropriating $86,797 received from a Texas Coastal Management Sub -Recipient Grant, to fund No. 162, Federal/State Grant Fund; and appropriating $86,797 from fund No. 162, Federal/State Grant Fund to restore, to the extent possible, Corpus Christi Beach to 1977 elevations. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye." * * * * * * * * * * * * * Mayor Rhodes opened discussion on Item 6, amendments to the water rate ordinance. City Manager Hennings explained that the Council asked staff to prepare an ordinance that would accomplish two things, the first of which is to eliminate the decreasing block rates for large - volume water customers. He said staff met with those customers' representatives at the Board of Trade, and they presented a recommendation that states in part that "a separate class of large industrial users should be established and rates designed specifically for that class." Mr. Hennings referred to charts illustrating the current commercial/industrial rate structure and the proposed rate structure for very large water users. He said staff is recommending the last block in the current schedule be eliminated for those water users. Council Member Martin stated that elimination of decreasing block rates was already accomplished through the adoption of the pass through approach for raw water costs. Minutes Regular Council Meeting March 18, 1997 Page 12 Mr. Hennings further discussed the proposed water costs for very large water users. He said that it will commit them to pay a minimum charge based on the cost of 10 million gallons per month, for both inside city limits (ICL) customers and outside city limits (OCL) customers. In addition, they would have to pay the monthly meter charge, the cost -of -service rate for each 1,000 gallons in excess of 10 million gallons per month, and finally the cost of raw water. He said that the large -volume customers have the option to be included in this rate class or not. If they choose not to, they would be included in the other rate class and they would not have the benefit of the flat rate that applies in this class; however, they would also not have to pay the minimum monthly charge for 10 million gallons per month. He added that once a customer was in this rate class, they could opt to withdraw from it, but they could not reenter it for at least 12 months. Mr. Hennings said that the other issue addressed in this proposal is the residential rate. He referred to charts showing the current and proposed rate structures. It begins with a minimum charge which includes the first 2,000 gallons, then there is a block which goes up to 6,000 gallons, and the next block goes up to 15,000 gallons. Mr. Hennings said the problem arises because in the commercial/industrial rate structure, the first block goes up to 15,000 gallons. The ordinance proposes to change the residential schedule to combine the first two blocks so that the first block would go up to 15,000 gallons in the same way as the commercial/industrial schedule. He said the 15,000 -gallon figure was used because for average annual monthly consumption, 91% of ICL residential customers use 15,000 gallons a month or less. Mr. Hennings added that the ordinance also corrects two minor arithmetic errors in the previous water rate ordinance. Mr. Martin said most of the large -volume water users use more than 10 million gallons per month, and the elimination of the last block affects only very few customers. Mr. Hennings said it is purely a perception issue: by eliminating the last block in the commercial/industrial schedule, that eliminates the perceived advantage someone might have by increasing their consumption in order to qualify for that last block. A brief discussion ensued, and Mr. Martin reiterated that the Council eliminated the last block --or raised it significantly --when they adopted a flat -rate charge for raw water. Council Member John Longoria said he thought this recommendation was fair, adding that the Council and staff have been working on this issue for quite a while. Mayor Rhodes called for comments from the audience. Mr. Neal Trolinger said the city still falls below the state median average for industrial water rates, even if this proposal is adopted, and about average on residential water rates. He said the city is still attracting water -intensive businesses to this area, but what are needed are water -conservative businesses. Minutes Regular Council Meeting March 18, 1997 Page 13 Mr. Martin said that for many of the area's large industries, the city has raised their water rates by up to 40%, and he asked if the industries have indicated that they can remain competitive. Mr. Hennings said that before the bonds could be sold to build the Lake Texana pipeline, the city had to obtain commitments from the large water users that they would continue to be the city's customers and continue to use water. He said those industries acknowledged that their water bills will increase 40% for treated water and probably 200% for raw water, but these increases would not make them uncompetitive, and they urged city officials to proceed with the pipeline project. Mayor Rhodes noted that the industries in Corpus Christi have been touted as being water - conservative and are held up as examples of such throughout the state. She added that "industries" are not some vague, menacing entity; instead, 40% of the jobs in this community are related in some way to the industrial base and those jobs need to be protected. Mr. Longoria said the water -intensive industries also bring the highest paying jobs into this community. He pointed out that this ordinance lowers the water rates for about 90% of residential customers in the city. Responding to Council Member Heldenfels, Mr. Hennings stated that only Dallas and San Antonio have lower water rates than Corpus Christi among metropolitan areas. He said he would provide a survey illustrating that. City Secretary Chapa polled the Council for their votes as follows: 6. FIRST READING ORDINANCE Amending the Schedule of water rates in Section 55-50, Code of Ordinances, City of Corpus Christi, eliminating decreasing block water rates for large volume commercial and industrial users, establishing a new rate class for those users, and establishing a flat water rate for single family residential customers with consumption up to 15.000 gallons; providing for severance; and providing for publication. 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 noted that the following zoning case had been postponed for one week: 7. Case No. 297-3. Bruce Callaway: A change of zoning from an "AB" Professional Office District with a Special Permit to a `B-1" Neighborhood Business District on Windsor Park Unit 4, Block 20, Lot 17R, located on the southeast corner of South Staples Street and Minutes Regular Council Meeting March 18, 1997 Page 14 Collingswood Drive. POSTPONER Zoning Map i.. n,f.,.e,cc to Wa,&,. .. k Unit 4, Block 20, Lot -17R f1'orn "AB" P efcssie..al pubtieatien. - • 11 --- * * * * * * * * * * * * * Mayor Rhodes opened the public hearing on the following zoning case: 8. Case No. 297-5. Gary L. Martin: A change of zoning from an "F -R" Farm -Rural District to a "B-4" General Business District on Nueces River Irrigation Park, Block 2, being the west 9.78 acres out of Lot 1, located along the south side of Farm to Market Road 624, approximately 785 feet west of County Road 69. Mayor Rhodes said the Planning Commission recommended approval. No one appeared in opposition to the zoning change. Council Member Best made a motion to close the public hearing, seconded by Council Member Heldenfels, and passed unanimously. City Secretary Chapa polled the Council for their votes as follows: ORDINANCE NO. 022869 Amending the Zoning Ordinance upon application by Gary L. Martin, by changing the Zoning Map in reference to Nueces River Irrigation Park, Block 2, being the west 9.78 acres out of Lot 1 from "F -R" Farm -Rural District to `B-4" General Business District; providing for publication. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent. ************* Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 9 through 18, and Council Members requested that Item 12 be withheld for discussion. Minutes Regular Council Meeting March 18, 1997 Page 15 City Secretary Chapa polled the Council for their votes and the following were passed: 9. M97-064 Motion approving a supply agreement with VWR Scientific Products, Suwanee, Georgia for laboratory supplies consisting of various chemicals and supplies in accordance with Bid Invitation No. BI -0017-97 on the basis of low bid, for an estimated annual expenditure of $40,658.85. The term of the agreement will be for twelve months with an option to extend for up to two additional twelve-month periods, subject to the approval of the supplier and the City Manager or his designee. Funds are budgeted in FY 96-97 by the Water and Health Departments. The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent. 10. M97-065 Motion approving a supply agreement with B.J.'s Uniforms, Corpus Christi, Tx, in accordance with Bid Invitation No. BI -0087-97, for police uniforms which includes approximately 470 pants, 575 shirts, and 40 jackets, based on low bid for an estimated annual expenditure of $51,020.01. The term of the agreement will be for twelve months with an option to extend for up to two additional twelve month periods, subject to the approval of the supplier and the City Manager or his designee. Funds are budgeted in FY 96-97 by the Police Department. The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent. 11.a. M97-066 Motion authorizing the City Manager to execute contract No. 7460005751-98 with the Texas Department of Health in the amount of $92,610.00 for tuberculosis prevention and control and expanded outreach services during the period January 1, 1997 to December 31, 1997. The foregoing motion passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent. 11.b. ORDINANCE NO. 022870 Ordinance appropriating a grant from the Texas Department of Health in the amount of $92,610.00 for tuberculosis prevention and control and expanded outreach services during Minutes Regular Council Meeting March 18, 1997 Page 16 the period January 1, 1997 to December 31, 1997; adding $92,610.00 to the No. 162 Federal/State Grants Fund - Health Department. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent. 13. ORDINANCE NO. 022872 Ordinance approving consent to collateral assignment from KMC Southeast Corporation (KMC Telecom Inc.) to AT&T Finance Corporation. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent. 14. ORDINANCE NO. 022873 Ordinance relinquishing all easement rights granted by E.S. Joslin to Houston Natural Gas Corporation as successors in interest thereto, within Lots 2 & 3, Block 1, Bridgepointe Landing Subdivision and a portion of Lot 12, Section 28, Flour Bluff & Encinal Farm & Garden Tracts, subject to owner's compliance with the specified conditions. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent. 15. ORDINANCE NO. 022874 Ordinance authorizing the City Manager or his designee to execute an Interlocal Government Agreement with the Regional Transit Authority to jointly provide a vehicle, communications equipment and staff for a mobile communications center. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent. 16. FIRST READING ORDINANCE Amending Chapter 55, Code of Ordinances, City of Corpus Christi, to implement a management program for the Municipal Separate Storm Sewer System. Minutes Regular Council Meeting March 18, 1997 Page 17 The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent. 17. FIRST READING ORDINANCE Authorizing the City Manager or his designee to execute an Interlocal Agreement with Nueces County to deny motor vehicle registration when vehicle owner has a Municipal Court Warrant. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent. 18. FIRST READING ORDINANCE Amending the City's Code of Ordinances, Chapter 53 - Traffic, Article VIII - Schedules, Section 53-254, Schedule V - Increase of State Speed Limit in Certain Zones, by establishing speed limits on the Crosstown Expressway Extension East and West Frontage Roads, as follows: 50 MPH - East Frontage Road from a point approximately 3,335 feet north of Holly Road to a point approximately 1,510 feet south of Holly Road; 50 MPH - West Frontage Road from a point approximately 4,720 feet north of Holly Road to a point approximately 1,510 feet south of Holly Road; 55 MPH - East/West Frontage Roads from a point approximately 1,510 feet south of Holly Road to a point approximately 2,500 feet south of Saratoga Boulevard; and 60 MPH - East/West Frontage Roads from a point approximately 2,500 feet south of Saratoga Boulevard to the South City Limit. The foregoing ordinance passed on first reading by the following vote: Rhodes, Best, Black, Heldenfels, B. Longoria, J. Longoria, Martin, and McNichols voting "Aye"; Cooper absent. ************* Mayor Rhodes opened discussion on Item 12, CPL's integrated resource plan filing. In response to Council Member Heldenfels, City Attorney Bray explained that the Texas Legislature, in order to avoid having a lot of new and unnecessary plants built, in 1995 said that they want the electric utilities to appear periodically and lay out their plans of how they would provide sufficient electricity, which is going to be in a competitive market. The utilities present a preliminary plan to the Public Utility Commission (PUC), and the PUC approves it and they go out and take bids, which ultimately are also approved by the PUC. He said that essentially, this process will determine a lot about what future rates are and the cities are entitled to participate in this proceeding. Minutes Regular Council Meeting March 18, 1997 Page 18 Mayor Rhodes called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 12. RESOLUTION NO. 022871 Resolution authorizing the City of Corpus Christi to intervene before the Public Utility Commission of Texas in Docket No. 16995, Central Power and Light Company's Integrated Resource Plan filing and request for approval of new power supplies; 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, J. Longoria, Martin, and McNichols voting "Aye"; B. Longoria absent. * * * * * * * * * * * * * Mayor Rhodes called for the City Manager's report. Mr. Hennings said that Mr. Carl Crull, Assistant City Manager for Public Works and Utilities, would give the monthly status report on the Lake Texana pipeline project. Mr. Crull first provided a status report on the reservoirs. He said that to date this month, there has been 875 acre-feet of inflow, and at the beginning of the month the combined system was at 29.5% of capacity and the current capacity is 29.2%. He said the recent rains had saturated the ground but there had not been much runoff. He contrasted those figures with the situation at Lake Texana: according to the general manager at the Lavaca-Navidad River Authority (LNRA), Lake Texana is full and they have released or spilled 200,000 acre-feet of water in the last week. Mr. Hennings emphasized that Lake Texana's overflow of water in just one week equaled more than a year and a half supply of water to this area. Council Member McNichols said that is because Lake Texana's water shed historically is at least eight times as productive as Corpus Christi's water shed, which is why the pipeline is being built in the first place. With regard to the pipeline, Mr. Crull said the project is progressing on all fronts. He said the pricing of the bonds was March 4th and 5th, and the transfer and closing will take place on March 19th. All the permits are in hand, and the detailed design production is about 60% complete; while the plans and specifications for the booster stations and river crossings are about 90% complete. He said they project a bid date for those in late April 1997. Mr. Crull said the right-of- way (ROW) acquisition is still moving forward, with 12.63 ROW miles acquired and an additional 20 to 25 miles expected to be acquired soon. Mr. Crull said the pipeline contractor is establishing a project office in Refugio, and pipe Minutes Regular Council Meeting March 18, 1997 Page 19 production is scheduled to begin on March 24th. In addition, a project kickoff ceremony is being planned for April 11, 1997. Council Member Heldenfels asked why the pipeline size was being changed from 64 inches to 48 inches at the river crossings. Mr. Crull explained that 3,000 feet of the pipe will be 48 inches in diameter, which will be directionally drilled under some sensitive areas of the Guadalupe River and the Victoria Barge Canal. He added that 48 inches is the largest size that has been directionally drilled in the United States; the rest of the river crossings will be open -cut and will be 64 inches in diameter. Council Member Martin said the data on the bond sale recently provided to the Council was less than what the preliminary official statement called for. He said the rates are dramatically below market, and he commended those involved. Council Member Best referred to the large amount of water that is being spilled or released from Lake Texana. Mr. Crull said staff has had preliminary discussions with LNRA officials about whether the city can increase the amount of water it will be receiving from the lake. He said their main concern is that Corpus Christi's portion of the Lake Texana water does not adversely impact the firm yield of that lake. Mayor Rhodes said she was upset about false claims that the pipeline will be routed through her property. She asked that when she is no longer the Mayor, is she still considered a public figure. Mr. Bray replied that it is probably more a matter of degree rather than a specific time period. Mr. Hennings then referred to Item 19 on the day's agenda, a legislative update and consideration of resolutions and actions deemed appropriate by the City Council as to legislative issues before the 75th Texas Legislature. He said the Legislature has asked the city for a show of support for Senate Bill 1 (the water legislation) as it has been modified by the Senate subcommittee. He asked the Council to consider adopting the resolution which was distributed to the Council. City Secretary Chapa polled the Council for their votes as follows: 19. RESOLUTION NO. 022875 Resolution supporting the Senate Committee substitute to Senate Bill 1. The foregoing resolution passed by the following vote: Rhodes, Best, Heldenfels, B. Longoria, Martin, and McNichols voting "Aye"; Black, Cooper, and J. Longoria absent. In his report, Mr. Hennings stated that the city's recycling program is scheduling some activities on March 19, 1997 in celebration of the program's fifth anniversary. Items scheduled for Minutes Regular Council Meeting March 18, 1997 Page 20 the March 25th Council meeting included the final recommendations of the Commission on Children and Youth, as well as the proposed ordinance about park curfews. Mr. Martin said he thought that was the kind of issue that the new City Council could address Mr. Hennings said staff would also be making a recommendation for the lease -purchase of four replacement ambulances. Mr. Hennings also referred to a copy of a letter given to the Council members from Rep. Solomon Ortiz, Sen. Kay Bailey Hutchison, and Rep. William Thornberry. In the letter, it states that if the Bureau of Reclamation cannot implement the intent of Congress with regard to the deferral of payments to the Bureau, then they will see that the corrective legislation is passed. Mr. Hennings also reported some adverse weather that was occurring at that moment. In her report, Mayor Rhodes said there were two appointments she needed to make to the Workforce Development Corporation. She appointed Sue Salter and Jack White in the interim. She also stated that there was some pending legislation that could erode cities' rights to annexation, and she went to Austin to testify on that issue. She thanked Mr. Brandol Harvey, Director of Planning and Development, for providing the support material. * * * * * * * * * * * * * Mayor Rhodes called for Council concerns and reports. Council Member John Longoria said action needed to be taken on the many potholes that have appeared on Crosstown Expressway. He also requested information from staff on the sales tax revenues that have been received. Council Member Martin asked about an appointment to the Park and Recreation Advisory Board, and City Secretary Chapa said that appointment could be made during the March 25th Council meeting. Council Member Betty Jean Longoria commented on many accidents that occur on South Padre Island Drive and the problem that creates for traffic trying to merge from Crosstown Expressway. She also reported a problem with cars double parking on a certain section of Navigation, and she questioned low-flying helicopters around Rand Morgan and Violet roads. Mr. Hennings replied that they were probably the Navy minesweeper helicopters; he said he would provide additional information. Council Member Best asked about the status of the Crosstown Expressway extension project. Mr. Hennings said the S.P.I.D./Crosstown interchange is the next phase, but that was delayed when the Texas Transportation Commission reallocated their funding to Houston to build the roads to support the new baseball park in downtown Houston. He said that Mr. Billy Parks, District Engineer for the Texas Department of Transportation, estimates that it may not be until the year 2000 before Minutes Regular Council Meeting March 18, 1997 Page 21 Corpus Christi may be eligible for funding for that project. Council Member McNichols said that progress is being made on preliminary steps to the JFK Causeway elevation project. * * * * * * * * * * ** Mayor Rhodes called for petitions from the audience. Mr. Neal Trolinger said he has not made any statements regarding property that Mayor Rhodes owns in relation to the pipeline project. Regarding the Bureau of Reclamation debt deferral, he said he had also provided the Council with the name of the Chairman of the House of Representatives committee. He added that it was untrue that Koch Refining donated the study for the cost of the pipe; he said it was a matter of record that they were reimbursed $15,000 for that. There being no further business to come before the Council, Mayor Rhodes declared the Council meeting adjourned at 5:15 p.m. on March 18, 1997. * * * * * * * * * * * * *