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
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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
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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
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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."
* * * * * * * * * * * * *
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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
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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.
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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."
* * * * * * * * * * * *
*
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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
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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
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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."
* * * * * * * * * * * * *
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Regular Council Meeting
March 18, 1997
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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.
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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.
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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
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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.
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•
11
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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
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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.
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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.
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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
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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
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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
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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.
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