HomeMy WebLinkAboutMinutes City Council - 11/11/1997I 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 November 11, 1997, which were approved
by the City Council on November 18, 1997.
WITNESSETH MY HAND AND SEAL, this 18th day of November, 1997
Armando Chapa
City Secretary
SEAL
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Council Meeting
November 11, 1997
2:00 p.m.
PRESENT
Mayor Loyd Neal
Mayor Pro Tem Alex L. Garcia Jr.
Council Members:
Jaime L. Capelo Jr.
Arnold Gonzales
Betty Jean Longoria
John Longoria
Edward Martin
Dr. David McNichols
ABSENT
Melody Cooper
City Staff:
City Manager Bill Hennings
City Attorney James R. Bray Jr.
City Secretary Armando Chapa
Mayor Neal called the meeting to order in the Council Chambers of City Hall. He then
delivered the invocation and led the Pledge of Allegiance to the flag of the United States.
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 Neal called for approval of the minutes of the special and regular Council meetings
of October 28, 1997, and there being no corrections, he proclaimed them approved as presented.
*************
Mayor Neal called for petitions from the audience.
Mr. Glynn Pugh, 725 Harrison, reported on developments regarding Central Power and
Light's overcharges and refunds. He said he was requesting that CPL pay its customers refunds
totaling about $62 million in cash in December 1997.
Mr. Abel Alonzo, 1701 Thames, thanked the voters who participated in the November 4th
election, adding that he was disappointed that the Community Progress Partnership (CPP) initiatives
were not approved by voters. He also thanked elected city officials for having the courage to try to
improve the quality of life for young people in this community. He commended Mayor Neal for
promoting inclusiveness in his administration and helping to inform the public.
Minutes
Regular Council Meeting
November 11, 1997
Page 2
Mr. A.C. Billings urged the Council to take action to tear down the old Nueces County
Courthouse and to raise money to repair city streets and improve drainage. Mayor Neal pointed out
that the city is in the process of soliciting an extensive study of the feasibility of the old Nueces
County Courthouse.
Ms. Dorothy Earwood, 605 Williamson, said she collected many signatures of people
opposed to Phase II of the Gateway Project. She said there are many other problems to address,
including the raising of the JFK Causeway.
Mr. Victor L. Salter Jr., 613 Carmel Parkway, thanked the Council members who originally
voted against the proposal to realign the travel lanes of Shoreline Boulevard as part of the Gateway
Project, as well as Council Member Capelo for changing his vote. He stressed that he is totally
opposed to that proposal.
Mr. Victor Salter, 613 Carmel Parkway, urged the Council not to proceed with Phase II of
the Gateway Project. He said it would increase traffic problems on Shoreline; instead, he encouraged
the Council to replant the palm trees on Shoreline and repair the streets.
Mr. Phil Rosenstein referred to an article in the local newspaper about the CPP election. He
asked the Council to keep Shoreline Boulevard in its current state.
Mr. Harvey Olander, 1345 Annapolis, distributed copies of a "sampler" plan he proposed for
the improvement of Shoreline.
Mr. Jimmie Till thanked the city officials who attended the Veterans Day ceremonies that
morning at Sherrill Park. He said he and some others have been speaking out against the Gateway
Project for quite some time, and he added that people want to have a say about what occurs in their
community.
Mr. Luis Corona, 2805 David, spoke against Phase II of the Gateway Project.
Ms. Pat Suter, 1002 Chamberlain, thanked the Council for their support of the Local
Emergency Planning Committee. She stated that many people do not know that a public information
meeting is scheduled on the location of proposed pipelines, even though the public notices are
published as required in the legal section of the newspaper. City Attorney Bray stated that those
posting requirements were included in the ordinance when it was originally approved and they could
be changed to a different type of posting.
Mr. J.E. O'Brien, 4130 Pompano, said the Council has major problems to deal with, and last
Tuesday the citizens sent a very clear message to the Council via the defeat of the CPP proposals.
He said their actions on the Gateway Project would be a step in the right direction, and he asked
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Regular Council Meeting
November 11, 1997
Page 3
them to consider letting people vote on the Garwood water contract. He also referred to the Lavaca-
Navidad River Authority contract, saying it was voided because it did not meet the requirements of
the City Charter with regard to certification of funds. Mr. Bray replied that the litigation over the
LNRA contract fully validated the contract in all respects.
Mr. George Isaacs, 518 Brawner Parkway, said he lived for 50 years on Resaca Street and
he urged the Council not to change Shoreline Boulevard.
Mr. John Hartley, 3925 Sandy Hollow, asked the Council to remind CPL officials that they
have an obligation, as prescribed by the state Public Utility Commission, to refund monies to the
ratepayers.
Mr. Gene Pennebaker, 101 N. Upper Broadway, said he originally had been in favor of Phase
II of the Gateway Project until he was mugged recently along the bayfront. He expressed concern
about safety if a park is built next to the bayfront and it changes the flow of traffic there.
Responding to Council Member Gonzales, Mr. Bray said the City of Corpus Christi is a
direct participant, along with the other cities in CPL'S service area, in the proceedings regarding the
refunds. He said the cities have been extremely active in the rate case through their counsels in
Austin and their position is that the monies should be refunded at the earliest possible date. He added
that the Corpus Christi City Council had previously supported that position. Council Member John
Longoria asked if the rate case would affect the city's franchise fee revenue from CPL, and Mr. Bray
said the reduction in revenues is offset by the reduction in rates. Mr. Hennings added that that had
been anticipated in the budget.
Mr. Leon Perez, 904 Buford, thanked Mr. Pugh for his involvement in the CPL rate case;
however, he said CPL would find a way to keep people from benefitting from the refunds.
Mr. Isaac Valencia, President of the Corpus Christi Police Officers Association, on behalf
of that organization thanked several people for their involvement and support of the Crime Control
and Prevention District, including the City Council; the temporary board of the crime control district;
Ms. Laurie Cook, chairperson of the temporary board; the members of the CCPOA themselves and
the auxiliary; the Combined Law Enforcement Associations of Texas; Nueces County Sheriff's
Association; Corpus Christi Taxpayers Association; and the voters who supported the proposal.
Mr. R.F. Hasker, 1813 Wallace, commented on the failure of the CPP proposals.
Mr. Andy Rodriguez spoke in favor of Phase II of the Gateway Project, saying it would
benefit the community.
*************
Minutes
Regular Council Meeting
November 11, 1997
Page 4
Mayor Neal referred to the Board and Committee appointments on the day's agenda, and the
following appointments were made:
Landmark Commission
Deborah Douglas (Reappointed)
Ronald Smith (Reappointed)
Joe Williams (Reappointed)
Leslie Mabrey
Marta Monroe
Citizens Advisory Health Board
Dan Chapa (Reappointed)
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 3, consideration of the Gateway Project.
Council Member Gonzales made the following motion, which was seconded by Council
Member Betty Jean Longoria: Motion instructing the City Manager to terminate any further planning
and development of Phase II of the Gateway Project; continue with planning and development of
Phase I of the Gateway Project; and develop plans for the appropriate signalization and intersection
improvements at IH -37 and Shoreline Boulevard.
Council Member John Longoria said he thought it should be clarified for those interested in
the Gateway Project that the new federal courthouse will be located on Shoreline Boulevard where
it intersects with IH -37. He asked staff to include the illustration of the design of the new courthouse
in its illustration of plans to signalize that intersection.
Council Member Martin asked about plans for a parking lot next to the Greater Corpus
Christi Business Alliance building, and City Manager Hennings replied that the city is contractually
obligated to pay $75,000 toward that construction. Dr. Gonzales suggested that if his motion is
approved, the full budget for those actions be brought back to the Council.
Responding to Council Member Garcia, Mr. Hennings said the Downtown Management
District (DMD) had provided $150,000 to date for the Gateway Project, with a commitment for an
additional $50,000; the Regional Transportation Authority (RTA) had committed $300,000 but the
city had not received those funds. He said the DMD contribution was intended to promote the entire
Gateway Project, including Phase I, while the RTA improvements were based on the plans for that
area as previously discussed. He said he did not know if the RTA would still want to make some
improvements there in light of the proposed changes to the project.
Mr. Garcia asked Mr. Hennings if he would have a problem refunding those organizations
any monies they had contributed if the city did not follow through with Phase II. Mr. Hennings said
he would not object to that, and he added that the DMD had envisioned a larger scale project than
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Regular Council Meeting
November 11, 1997
Page 5
what was proposed for Phase I, although they were interested in the improvements in Phase I. As
to the RTA, he said staff would have to discuss with RTA officials what is needed to provide the
right kind of transportation service along Shoreline.
Mr. Hennings said the Texas Parks and Wildlife Department grant was also based on a
certain concept, and staff will have to talk with them about whether that grant can be redirected for
some other kind of improvements. In addition, the landscaping for Phase I would be completed as
planned. He said the question regarding Phase II is whether the Council would want to do anything
other than the badly needed traffic signalization and replacement of the palm trees.
Responding to another question from Mr. Garcia, Mr. Hennings said the proceeds from the
land sale to the General Services Administration are about $1 million, after completion of Phase I
and allocation of $355,000 for the investigation of the seawall.
Mr. Garcia said he would like to make a friendly amendment to Dr. Gonzales' motion to state
that the contributions would be refunded to the different organizations since they were made based
on a concept that will no longer be considered.
Council Member McNichols asked if there would be any problems with the federal
government in relation to the new courthouse if the city changes its plans for the Gateway park. Mr.
Hennings replied that he did not think there was any failure of commitment by the city in that regard,
especially if the Phase I portion on IH -37 is completed. He reiterated that the city's only contractual
obligation is the payment of $75,000 to the federal government to assist in parking lot construction.
He said he had misspoken earlier in reply to Mr. Martin in that the parking lot construction was
reflected in the budget for Phase II, even though it is actually not part of either Phase I or Phase II
of the Gateway Project.
Dr. McNichols asked if the state grant could be redirected to pay for landscaping of the
medians on Shoreline, and Mr. Hennings said that is one of the ideas staff will explore with state
officials.
Mrs. Longoria said she would support refunding monies to the DMD, but she would not be
willing to refund monies at this time to the RTA.
In reply to Mr. Garcia, Mr. Hennings said there were very little engineering expenses on
Phase II since work had been previously halted. Mr. Garcia asked if landscaping plans for Phase I
should be stopped until the study of the old Nueces County Courthouse is completed. Mr. Hennings
said that would be a judgment call, although he did not think that proceeding with it would be a
problem.
Mayor Neal suggested that the Council vote on Dr. Gonzales' motion on that day, and then
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Regular Council Meeting
November 11, 1997
Page 6
wait to take further action until they receive a full report from staff on the remaining funds and
landscaping options. He added that Council Member Cooper would be back from her trip by then.
Mr. Garcia said he did not think those things made a difference with regard to his concern about
refunding the DMD.
The Mayor called for a voice vote on Dr. Gonzales' motion as previously stated, and it
passed unanimously (Cooper absent).
Mr. Garcia made a motion to refund $150,000 to the Downtown Management District that
they had put into the Gateway Project to date; seconded by Mrs. Longoria.
Mr. Hennings suggested that Mayor Neal call for public comment on Dr. Gonzales' motion,
and the Mayor apologized for not having done that. He said he would reopen Dr. Gonzales' motion
and allow the public to comment on it before calling for another vote on it.
Mrs. Sylvia Gulley, 4044 Magee Lane, said she had not heard a motion to change the
Council's long-range plans for Shoreline Boulevard. Council Member Capelo said Dr. Gonzales'
motion terminated any further planning or development of Phase II, which included the long-range
plans. Mrs. Gulley said she and others have never been against any plans to improve the city's
gateway area or to plans to enhance any part of Shoreline; their objection was to the relocation of
the northbound travel lanes of Shoreline. Mayor Neal restated Dr. Gonzales' motion.
Mr. Bob Barnes said he thought this was the proper action for the Council to take.
Ms. Frances Bush, 6426 Brockhampton, questioned why the Council would consider
refunding $150,000 to the DMD at this time.
Mr. David Diaz said he supported Dr. Gonzales' motion, and any leftover funds should be
used to repair the seawall.
Mr. Glynn Pugh thanked Mr. Capelo for changing his vote on Phase II of the Gateway
Project, and he thanked Mr. Martin as well, noting that Mr. Martin had stated that the city has better
ways to utilize the funding.
Mr. Joe Adame, 1818 Graham Rd., commented on the failure several years ago of the
landmass initiative. He said he has been involved with the DMD for the last few years and he felt
the whole Gateway Project would have been beneficial for the city and would have made the seawall
more "people friendly."
Mr. John Hartley said what was to have been the city's gateway area will soon be the site of
a federal courthouse. He urged the Council to do what is best for Corpus Christi rather than copying
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Regular Council Meeting
November 11, 1997
Page 7
other cities.
Mr. Frank Hankins said he thought the comments should be addressing the motion
concerning the DMD refunding. Mayor Neal explained that the motion on the floor is Dr. Gonzales'
motion concerning the Gateway Project. He said he had reopened that motion since he had not called
for public comment on it.
Mr. Gordon Landreth, Chairman of the Board of the DMD, spoke on their behalf and
expressed their deep disappointment over the direction of their flagship project. He said they had
spent four years of time and work on the Gateway Project, including gathering multiple
endorsements for it. He said the DMD still believes the Gateway Project is a good plan, and they
look forward to other opportunities to work with the Council and city staff for the betterment of
Corpus Christi.
Mr. Jimmie Till said he thought the DMD's $150,000 should be returned to them.
Mr. A.C. Billings asked the Council to forget about the Gateway Project and instead work
on repairing the streets and drainage.
Mr. Lewis Lovelace said he agreed that the DMD should be refunded their contribution, and
he said the Business Alliance should be broken up and they should stop trying to run the City
Council and city staff.
Mr. Longoria said he did not want people to think that the Council was trying to take away
their bayfront drive by supporting Phase II; rather, Shoreline Boulevard would have resembled
Ocean Drive with the park next to the water but without the obstruction of the houses.
City Secretary Chapa polled the Council for their votes on Dr. Gonzales' motion as follows:
3. M97-322
Motion instructing the City Manager as follows:
a. terminate any further planning and development of Phase II of the Gateway Project;
b. continue with planning and development of Phase I of the Gateway Project;
c. develop plans for the appropriate signalization and intersection improvements at IH -37
and Shoreline Boulevard.
The foregoing motion passed by the following vote: Capelo, Garcia, Gonzales, B. Longoria,
J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper absent.
Mr. Garcia then made a motion to refund $150,000 to the Downtown Management District
Minutes
Regular Council Meeting
November 11, 1997
Page 8
that they had put into the Gateway Project to date; seconded by Mrs. Longoria.
Mr. Longoria said he would not support Mr. Garcia's motion because he felt that a full
accounting of the project was needed. Mr. Garcia replied that since the Council rescinded its original
agreement on the full Gateway Project, they had a responsibility to return the DMD's monies.
Dr. McNichols asked Mr. Hennings if he thought any of the DMD's $150,000 were included
in Phase I. Mr. Hennings said staff had planned that the funds would all go into Phase II, which is
the way the budget was reflected.
Mrs. Longoria said she was very supportive of refunding the monies to the DMD, adding that
there are many more improvements that need to be made in the downtown area.
Mayor Neal said he would vote against Mr. Garcia's motion --not because he was opposed
to giving money back to the DMD but because he was opposed to taking any action until the Council
had a full accounting of it. He then called for comments from the audience.
Mr. Michael Sears, 417 Whitehall, said he thought the Council should ask the DMD whether
they wanted the money refunded or if they had an idea on how it could be spent.
Mr. Phil Rosenstein said the public, not the DMD, was misled regarding the Gateway Project.
City Secretary Chapa polled the Council, and Mr. Garcia's motion failed to pass by the
following vote: Garcia, Gonzales, B. Longoria, and McNichols voting "Aye"; Capelo, J. Longoria,
Martin, and Neal voting "No"; Cooper absent.
Mr. Hennings said staff would bring a report to the Council at the next meeting on the
financial status of the project.
*************
Mayor Neal called for a 10 -minute recess.
* * * * * * * * * * * * *
Mayor Neal opened discussion on implementation of the Crime Control and Prevention
District.
City Manager Hennings noted that City Attorney Bray had distributed a memorandum
explaining the implementation procedures. He said the Council had discussed the idea of appointing
a nine -member board by having each Council member nominate one person; however, staff did not
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Regular Council Meeting
November 11, 1997
Page 9
find that the Council had taken an official action in that regard. He said if the Council was ready next
week they could put the appointment of the permanent board on the agenda.
Mr. Bray said there were two actions the Council would need to take prior to seating the
crime district board: adoption of an ordinance carrying out the tax approved by the voters; and
creation of the board of directors along the lines that the Council had previously discussed. He said
staff was suggesting that that could be done in an ordinance, as distributed to the Council, which
basically follows the language of the statute that one Council member would appoint one board
member, and under the ordinance the appointment would be effective when the Council member
would file that in writing with the City Secretary In addition, the ordinance adopting the tax would
need to be sent to the state Comptroller's office, along with the order of the temporary board
canvassing the election. The tax itself would take effect on April 1, 1998.
Mr. Bray said that in his memo he also explained, from the statute, some of the actions after
the board is seated that the board and the City Council would take as part of the business of the
district: before commencing duties, each director of the district must execute a $5,000 fidelity bond;
the board shall elect officers; the board may contract with a public or private agency to administer
the district; the board shall establish a fiscal year; the board may adopt rules governing its activities;
the board shall hold a public hearing on its proposed annual budget not later than the 100th day
before the beginning of the fiscal year; the board shall adopt an annual budget not later than the 80th
day before the beginning of each fiscal year; the board shall submit the budget to the City Council
within 10 days of adoption; the Council must hold a public hearing on the budget at least 45 days
before the beginning of the fiscal year; the Council shall approve or reject, but not amend, the budget
not later than the 30th day before the beginning of the fiscal year; and if the Council rejects the
budget, it shall meet with the board and together amend and approve the budget before the beginning
of the fiscal year.
Responding to Council Member Martin, Mr. Bray said his staff and the City Secretary's staff
went through the Council meeting minutes at great length and could not find any actual adoption of
the creation of the board of directors of the crime control district. Mr. Chapa said there was some
discussion about that issue and appearance of concurrence by the Council, and a question was asked
whether a motion should be made and a motion was not made. Mr. Martin said he wanted to see a
copy of those minutes because he thought he had made the motion.
Mr. Martin asked if the Council could adopt both of the ordinances being recommended that
day, and Mr. Bray said they could. Mr. Martin asked if there were any restrictions on who could be
appointed to the board of the district. Mr. Bray replied that there is not a specific restriction; there
is a judicial doctrine of incompatibility of certain offices that might be subordinate to each other or
unduly influenced. In addition, there are many Attorney General opinions on that issue and it is very
fact -specific on each position.
Minutes
Regular Council Meeting
November 11, 1997
Page 10
Mr. Martin asked if the board members had to be residents, and if they could serve on another
city board or commission. Mr. Bray said they did not have to be residents, and they could serve on
most boards or commissions, but it would be subject to whether the two positions were somehow
incompatible because they had jurisdiction over the same subject matter. He added that the crime
district board is not a city board but rather it is an independent governmental agency.
Mr. Martin then asked if an elected official could serve on the board, and Mr. Bray said that
with the exception of City Council members, an elected official could serve; however, that might
raise particular questions such as in the case of a sheriff who might be requesting money from the
district. He said they have not researched every particular situation. Mr. Martin asked if a city
employee, in particular a police officer, could serve on the board, and Mr. Bray said he was still
reviewing that situation. Mr. Martin asked how the Council would proceed with the selection process
in light of Mr. Bray's comments. Mr. Bray said if a Council member would let him know about a
particular position, then Mr. Bray would research it and provide a legal opinion.
Mr. Martin asked who would pay the bond, and Mr. Bray said that since the director could
not act until the bond was posted, probably the best procedure would be for the city to front the bond
and be reimbursed by the district.
Council Member Gonzales asked how a board director of the district could be dealing with
the district's budget if he or she did not live within the district (city limits) itself. He added that he
would think there would be a residency requirement, and Mr. Bray reiterated that he did not see a
residency requirement in the statute.
Council Member Garcia asked if individuals who have ongoing contracts with the city could
be appointed, and Mr. Bray said there was no prohibition about that. Mr. Garcia also asked about
family members serving, and Mr. Bray said he thought the nepotism statute would apply in that case
since the Council members were making direct appointments to the board. He added that since the
directors would not be receiving compensation, in general elected officials could serve as long as
their positions were not incompatible under the Attorney General's opinion. Mr. Garcia asked if a
person would have to have a resume on file with the City Secretary's Office, and Mr. Bray said each
Council member would be able to appoint one of the board members which would be filed in writing
with the City Secretary. He added that the statute says that a director other than the president or vice
president can designate a person to serve in their absence.
Mayor Neal said he hoped the Council members will appoint people who will be active in
carrying out the responsibilities of the district.
Mayor Neal called for comments from the audience.
Mr. David Diaz, 4313 Ridgeview, said that in July he had presented the Council with a
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Regular Council Meeting
November 11, 1997
Page 11
proposal in which police commanders would be made accountable for four police precincts. He said
he had also given a copy of the proposal to Mr. Isaac Valencia with the CCPOA and Police Chief
Alvarez. He said he thought this was a good opportunity to revisit his proposal. Mayor Neal noted
that the Council was committed to hiring a consultant to conduct an indepth study of the city's entire
police operations in conjunction with the crime control district, and he hoped that the consultant
would be able to review all such suggestions as well as the plan developed by the temporary board
of the crime control district.
Council Member John Longoria said Mr. Diaz' plan had been reviewed by Chief Alvarez,
who was familiar with the concept of decentralization.
City Secretary Chapa polled the Council for their votes as follows:
I.-1. ORDINANCE NO. 023123
Ordinance adopting and levying a sales and use tax for the purpose of financing the operation
of the Corpus Christi Crime Control and Prevention District; declaring the results of the
election creating said district; and providing an effective date.
An emergency was declared and the foregoing ordinance passed by the following vote:
Capelo, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting
"Aye"; Cooper absent.
I.-2. ORDINANCE NO. 023124
Ordinance creating the Board of Directors for the Corpus Christi Crime Control and
Prevention District pursuant to the Texas Crime Control and Prevention District Act.
An emergency was declared and the foregoing ordinance passed by the following vote:
Capelo, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting
"Aye"; Cooper absent.
* * * * * * * * * * * * *
Mayor Neal said that with regard to the update by Freese & Nichols on the Wesley Seale
Dam stability analysis, the Council had been informed that Dr. Ron Waters with Freese & Nichols
was ill and unable to attend the meeting. As a result, that issue will be discussed next week.
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 4, tax-exempt commercial paper program (TECP).
Minutes
Regular Council Meeting
November 11, 1997
Page 12
Mr. Jorge Garza, Assistant City Manager for Administrative Services, explained that the
TECP program is an interim financing program which staff feels will save the city money in interest
expense and which will be used for utility -related capital improvement projects. Upon Council's
approval, staff would establish the commercial paper program along with approving the various
contracts and agreements associated with it. He said those present at the meeting were
representatives from Estrada Hinojosa & Company; Merrill Lynch & Company; McCall, Parkhurst
& Horton; and M.E. Allison & Company.
Council Member Martin asked if there were no 1997 figures available in the material sent
to the Council. Mr. Jorge Cruz-Aedo, Director of Finance, said the audit is being completed as part
of the financial reports and they will be inserting the year-end results in the offering document. He
said they have been working with bond counsel in the preparation of the offering document;
generally speaking, the ending results from 1997 are consistent with the prior years and show that
the combined utility system is in a position to issue the commercial paper.
In reply to other questions from Mr. Martin, Mr. Cruz-Aedo said there is no official statement
with the TECP; rather, there is an offering document, which the Council was not approving. Mr. Jeff
Leuschel, bond counsel with McCall, Parkhurst & Horton, said the item before the Council
authorizes the establishment of the commercial paper program and it authorizes that three specific
agreements be executed: one with a triple-A rated German bank, which will provide the credit in
support of the program, an agreement with Merrill Lynch and Estrada Hinojosa, which will be the
dealer responsible for selling the notes in the commercial paper marketplace. In connection with that,
an offering memorandum will be prepared, and that draft is not like an official statement associated
with other bond transactions, which he explained. The third agreement is with Chase Manhattan
Bank, which will be issuing the notes on behalf of the city from time to time. He said they do not
issue notes unless they are directed by the City Manager or the Director of Finance to sell the notes.
As with all other city bond transactions, this ordinance and the agreements must be submitted to the
Texas Attorney General for approval (which will include the FY 1997 numbers).
Mr. Martin asked if this was the last action the Council would take regarding this program,
and Mr. Leuschel said it was. He added that the rates are approved by the authorized representative,
who is the City Manager or Director of Finance. In addition, the ordinance contains a quarterly
reporting requirement where staff is to provide the Council with reports regarding the status of the
program, projects that have been financed, and seeking approval for projects to be financed. He said
due to the short-term nature of commercial paper programs, as with similar programs throughout the
state, management is given the duty to approve the rates.
Mr. Martin asked about possibly including a provision that approval is promptly transmitted
to the Council. Mr. Leuschel said the Council could direct by policy a limitation to staff that the
Council does not want to see notes issued above a certain interest rate. He said they considered
including that in the ordinance but chose not to because they felt it would affect the pricing of the
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Regular Council Meeting
November 11, 1997
Page 13
letter of credit, which he explained. Mr. Martin said he did not want to limit the rates but wanted to
be advised by staff on a real-time basis of the program's details, noting that this is a very new
program for the city.
Mr. Garza added that before they sell any of the commercial paper, they will come to the
Council with a project for approval, and the funding source will be identified as commercial paper
and staff will have an idea of the rates at that time. Mr. Cruz-Aedo said staff could make the reports
at whatever time the Council felt was appropriate. Mr. Leuschel said City Councils around the state
have dealt with that issue when they initially established this program in their cities, and various
internal policies have been discussed and can be implemented.
Mr. Martin referred to the previous Item I., crime control and prevention district, and asked
about the election figures contained in Section 4 of the ordinance just adopted by the Council. Mr.
Bray said staff would provide the correct figures.
Resuming discussion on the commercial paper program, Mayor Neal said that during the trip
to the bond rating agencies in New York, he and Council Member Capelo had expressed concern that
the Council be able to control the expenditures as well as the rates. At that time they were assured
that it would be dealt with as a policy issue outside the TECP document. Mr. Capelo suggested that
staff come back to the Council next week with an ordinance establishing such a policy. Mayor Neal
said he did not think they should approve the proposed TECP ordinance without knowing what
restrictions there will be or what the Council's policy will be.
Responding to Mr. Martin, Mr. Cruz-Aedo said Standard & Poor's rating is A1+ and
Moody's rating was not yet available. Mr. Leuschel explained that the A 1+ is a short-term rating and
is the highest rating issued by Standard & Poor's, which he explained.
Council Member McNichols said he did not object to the concept of the commercial paper
program. He asked what the typical term is for revenue bonds, and Mr. Garza replied that it is
usually 20 years. Dr. McNichols described a possible scenario in which the city might find that it
would have been more prudent to finance for a longer term in order to lock in low interest rates,
rather than utilizing short-term paper. Mr. Leuschel said many of his clients that have commercial
paper programs continually watch the market to determine at what point it would be prudent to
convert short-term paper to long-term fixed-rate debt; that is an action the City Council would have
to take.
Mr. Martin asked if there was a problem in postponing this item one week, and Mr. Leuschel
said there were some water projects that would need funding in early December but that would not
be a problem. Mr. Cruz-Aedo said staff would provide a written narrative of procedures for the
Council and, at the Mayor's request, he reiterated the purpose of the commercial paper program as
an interim financing mechanism --a "bridge" loan for construction projects in the utility areas, which
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Regular Council Meeting
November 11, 1997
Page 14
are water, wastewater, gas, and drainage (stormwater).
In the policy statement that staff will draft, Mr. Martin asked them to address Dr. McNichols'
comments about converting to long-term financing tools. Mr. Leuschel said the quarterly reporting
requirement in the proposed ordinance is designed in part to give the Council the opportunity to do
that. In addition, because the program term is seven years, the only "drop dead" date is the seven-
year expiration of the program. Mr. Martin said he wanted to ensure that the financial advisors would
have an obligation to make at least two or three recommendations.
Mayor Neal called for comments from the audience.
Mr. J.E. O'Brien said he had many concerns about this program. He discussed the city's debt
over the next several years and said he could not believe that city staff would recommend this item
without figures for FY 1997. He also commented on other issues, such as the fees of the financial
advisor, the passage of this item as an emergency, the use of a bank from Germany, and a question
whether, under any litigation, the laws of Germany would apply. He added that a vote in favor of
this program is a vote to increase utility rates in the future.
Mayor Neal asked Mr. O'Brien about his financial experience and background, including
whether he is a bond counsel. Mr. O'Brien replied that his wife has handled many bond issues for
the City of Corpus Christi, and he said while he does not consider himself an authority on the issue,
he is able to read. The Mayor asked Mr. O'Brien if he was opposed to the city trying to save money
in the area of revenue bonds by using instruments designed to do that, and Mr. O'Brien said he
questions whether they will save the city money in the long run.
Responding to some of Mr. O'Brien's comments, Mr. Leuschel said they talked with several
banks, including banks from the United States, Switzerland, Canada, and Japan, and the German
bank submitted the best and least expensive bid to provide the letter of credit to Corpus Christi. He
said the German bank has a New York branch and if there was a default, the city would operate in
suing the New York branch. He emphasize that there are about 25 commercial paper programs in
the state of Texas, some which he named, and none of them has gotten to that point. He said their
other clients have saved tens of millions of dollars over a seven- to ten-year period by operating this
type of program in a prudent manner.
Mr. Martin said he could understand Mr. O'Brien's opposition to debt, but the city needs
these utility capital improvement projects to ensure that the city's infrastructure continues to operate.
He said once you get pass that issue, the question becomes what is the least expensive way to issue
debt. He added that the integrity of the city's financial team is second to none and he emphasized
that this is a sound recommendation.
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Regular Council Meeting
November 11, 1997
Page 15
4. POSTPONED
************
*
Mayor Neal said the Council needed to review the voting tabulations in the ordinance under
Item I., crime control district.
City Secretary Chapa said the correct figures for Section 4 of the ordinance are 19,010 votes
in favor of the creation of the crime control district; 17,235 votes against; and 1,775 votes as the
approval rate.
Council Member Martin made a motion to reconsider the ordinance adopting the crime
control district; seconded by Council Member John Longoria; and passed unanimously (Cooper
absent). Mr. Martin then made a motion to adopt the ordinance before them with the corrected
figures as described by Mr. Chapa.
Mr. Chapa polled the Council for their votes on the ordinance as corrected:
I.-1. ORDINANCE NO. 023123
Ordinance adopting and levying a sales and use tax for the purpose of financing the operation
of the Corpus Christi Crime Control and Prevention District; declaring the results of the
election creating said district; and providing an effective date.
An emergency was declared and the foregoing ordinance passed by the following vote:
Capelo, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting
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Regular Council Meeting
November 11, 1997
Page 16
"Aye"; Cooper absent.
*************
Mayor Neal said he inadvertently overlooked the item on the agenda concerning the city
department performance review process, about which he then opened the discussion.
City Manager Hennings said he had sent the Council in their packets a summary of a
previous discussion on this issue, and next week they are scheduled to discuss the first of the major
issues, which is the first quarter review of the budget, as well as the capital improvement program
(including drainage issues). He said the discussion of the outside study of the Police Department is
scheduled for the December 9, 1997 Council meeting.
Mayor Neal said the Council had also discussed reviewing another major city department,
possibly Solid Waste Services. He said during the recent election the voters seemed to be asking
whether citizens are receiving the best from city government as it now exists. He said the purpose
of the performance review process is to try to return a degree of confidence to citizens that the
Council will thoroughly study those issues and make some possible substantial recommendations
for changes in some city departments.
Council Member Garcia said they need to define what are basic services and address those
issues first. He said he thought they needed to consider consolidation of some areas, which is not
addressed in the performance review process.
Council Member Betty Jean Longoria said she would be interested in studying the Solid
Waste Services department to determine how the city can provide better services.
Council Member Gonzales expressed concern about the city's drainage system and the work
of the Stormwater Department. He also commented on the attitude of some city employees.
Responding to Mayor Neal, Mr. Hennings said the review process that staff had laid out
would not affect the budget next year but in subsequent years. He said if the Council is striving for
changes that will affect next year's budget, that would involve a different kind of process. He said
the first step is to determine the goal they are trying to achieve.
Mayor Neal said his goal is to do whatever it takes to return to the electorate some degree
of confidence in the Council's ability to govern and spend monies wisely. He said he was asking
staff to develop a way to evaluate major departments right away, and by the time the budget
discussions begin staff can bring recommendations on whether or not they are being properly
managed.
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Regular Council Meeting
November 11, 1997
Page 17
Council Member John Longoria said this issue had been discussed by previous Councils, and
he said it is not possible to apply one degree of measurement to every city department, since they
deal with different services. He said he thought they had spent money wisely but there is never
enough money for the kinds of services people expect. He said the process may involve developing
a citizen survey to determine what they really want from city services.
Council Member McNichols pointed out that a few years ago, before the drought, the city
had experienced heavy flooding. In response to citizens' concerns, staff developed a drainage utility
proposal which was resoundingly defeated. He said there is a difference between efficiency and
productivity in each of the city's departments and the public's perception of good services and what
they are willing to spend to provide those services.
Council Member Martin asked the other Council members if they thought there was any
positive benefit in revisiting the Mercer study, and Mr. Longoria said he thought much of it was
outdated. He said in reviewing the city's budget, the Council should probably focus on the General
Fund, where they can make an impact, and the study of the Police Department is one example of
that. He suggested that the Council choose another department to review, visit that department, learn
about their procedures, voice their concerns to the department head and to Mr. Hennings, and then
ask staff to make recommendations. In addition, Mr. Martin said the Council can be identifying areas
for privatization for the purpose of maintaining efficiency and increasing effectiveness. He also
commented on the possibility of a focus group which could, for example, determine what were
people's concerns about the election. He said that is particularly important in light of an upcoming
bond program and subsequent bond election.
Council Member Gonzales said he agreed with Mr. Martin on the issue of hiring a group to
survey citizens' concerns.
Mayor Neal said he would like a recommendation as quickly as possible about an
organization or group that can conduct such a survey or analysis, and then focus on one or two large
departments using the information that is gathered.
Mrs. Longoria said she thought Ms. Susan Cable, Director of Communications and Quality
Management, had conducted some citizen surveys, and Mr. Hennings concurred.
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 5, lease agreement with Aspen Mountain Air. He then
called for comments from the audience, and there were none.
Responding to Council Member Garcia, Mr. Hennings said this agreement is the same one
the city has with all the airlines. The major difference is that Conquest Airlines went bankrupt and
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Regular Council Meeting
November 11, 1997
Page 18
never made the transition to the new agreement. Aspen Mountain Air is a new airline that is
expanding, and he commended Ms. Bonnie Allin, Director of Aviation, and her staff for recruiting
this airline. City Attorney Bray added that the city was not in a position to collect any monies from
Conquest.
Council Member McNichols asked about Aspen Mountain Air's destinations. Ms Allin
replied that the airline was started in Aspen, Colorado, and in the last year they have bought out
Lone Star Airlines out of Dallas. They fly from Pensacola, Florida, to Montana and through
Colorado, and they have connecting flights from Austin to other destinations. Mr. Garcia asked if
that airline will have flights from Corpus Christi to Mexico, and Ms Allin said they are in
discussions with them about that issue.
Council Member Martin asked about the type of airplanes the airline is utilizing. Ms Allin
said they will start off with the same types of planes that Conquest used, and they will also use an
executive 32 -passenger turboprop, as well as possibly purchasing a 32 -passenger jet.
City Secretary Chapa polled the Council for their votes as follows:
5.a. ORDINANCE NO. 023125
Ordinance authorizing the City Manager or his designee to execute an up to one-year lease
with Exec Express II, Inc., dba Aspen Mountain Air for ticket counter space, office space,
gate space, apron space and joint use of the baggage claim space and other common areas
at Corpus Christi Intemational Airport in consideration of payment of fees that total
approximately $4.06 per enplaned passenger and are adjusted annually based on a fixed
formula.
An emergency was declared and the foregoing ordinance passed by the following vote:
Capelo, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting
"Aye"; Cooper absent.
5.b. FIRST READING ORDINANCE.
Authorizing the City Manager or his designee to execute approximately a four-year lease
ending December 31, 2001, with Exec Express II, Inc., dba Aspen Mountain Air for ticket
counter space, office space, gate space, apron space, and joint use of the baggage claim space
and other common areas at Corpus Christi Intemational Airport in consideration of payment
of fees that total approximately $4.06 per enplaned passenger and are adjusted annually
based on a fixed formula; providing for publication.
The foregoing ordinance passed on first reading by the following vote: Capelo, Garcia,
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Regular Council Meeting
November 11, 1997
Page 19
Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper
absent.
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 6, 1997 law enforcement block grant program. He
called for comments from the audience, and there were none.
Responding to Council Member Betty Jean Longoria, Mr. Hennings said the mileage of the
program cars is usually in the range of 10,000 miles. Chief Alvarez said the Police Department has
some unmarked vehicles dating back to 1988 and they have not had unmarked vehicles for the past
two years, so these will be replacement vehicles; the cars that are replaced are then auctioned off.
Council Member Martin asked how the advisory board is appointed. Mr. Hennings explained
that the grant requires a public hearing and the appointment of a special advisory board, which he
said he can appoint. He said Chief Alvarez has given him a list of people he is suggesting be
appointed to conduct the public hearing. He said they would welcome input from the Council if they
wished. Mr. Martin said depending on the timing of this issue, this could be a good first task for the
crime control board. Mr. Hennings said staff would review his suggestion.
City Secretary Chapa polled the Council for their votes as follows:
6. M97-323
Motion authorizing the City Manager or his designee to accept a grant in the amount of
$583,157 from the U.S. Department of Justice, Bureau of Justice Assistance, for funding
eligible under the Local Law Enforcement Block Grants Program and to execute all related
documents.
The foregoing motion passed by the following vote: Capelo, Garcia, Gonzales, B. Longoria,
J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper absent.
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 7, amendments to the Comprehensive Plan. He called
for comments from the audience, and there were none.
In reply to Council Member McNichols, Mr. Brandol Harvey, Director of Planning and
Development, explained that the net result of the changes is that they are deleting a reference to a
recreational area study that was really only a directive by Council to initiate an action which was not
completed. Dr. McNichols requested more information about the Village Master Plan (JFK
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Regular Council Meeting
November 11, 1997
Page 20
Causeway), which is still in the plan.
City Secretary Chapa polled the Council for their votes as follows:
7.a. M97-324
Motion to amend ordinance prior to second reading by substituting an amended Exhibit B
which includes a revised heading and deletion of Item 14, JFK Causeway Recreation Master
Plan Study.
The foregoing motion passed by the following vote: Capelo, Garcia, Gonzales, B. Longoria,
J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper absent.
7.b. ORDINANCE NO. 023126
Amending the Comprehensive Plan of the City of Corpus Christi by amending Corpus
Christi Policy Statements, the Southside Area Development Plan, and the Oso Parkway Plan
elements by providing policy guidelines for maintaining current transportation plans and for
design of collector street systems; by adding additional collector streets in the Southside
Area Development Plan; by adding policies concerning bikeways in the Southside Area
Development Plan and Oso Parkway Plan; and by revising the bikeway system in the Oso
Park Plan.
The foregoing ordinance passed on second reading, as amended, by the following vote:
Capelo, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting
"Aye"; Cooper absent.
************
Mayor Neal recessed the regular Council meeting for the meeting of the Corpus Christi
Industrial Development Corporation.
The Mayor reconvened the regular Council meeting and called for a 10 -minute recess.
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 9, land purchase along Oso Creek. He called for
comments from the audience, and there were none. City Secretary Chapa polled the Council for
their votes as follows:
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Regular Council Meeting
November 11, 1997
Page 21
9.a. M97-325
Motion authorizing an agreement between the City of Corpus Christi and the Corpus Christi
Industrial Development Corporation for the Corpus Christi Industrial Development
Corporation to purchase certain lands along Oso Creek and to hold such lands for the benefit
of the City and for the City to contribute $40,000.
The foregoing motion passed by the following vote: Capelo, Garcia, Gonzales, B. Longoria,
J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper absent.
9.b. ORDINANCE NO. 023127
Ordinance appropriating $40,000 from the Unrestricted Park Trust Fund No. 111.
An emergency was declared and the foregoing ordinance passed by the following vote:
Capelo, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting
"Aye"; Cooper absent.
9.c. M97-326
Motion approving park land dedication credit equal to one-half of the non -wetland acres out
of an 8.98 acre tract adjacent to Oso Parkway and Oso Creek owned by Diamond L
Development, Inc. and to be donated by Diamond L Development, Inc. to the Corpus Christi
Industrial Development Corporation.
The foregoing motion passed by the following vote: Capelo, Garcia, Gonzales, B. Longoria,
J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper absent.
9.d. M97-327
Motion authorizing the City Manager or his designee to submit all required documentation
for a $75,000 grant from the Corpus Christi Bay National Estuary Program for the Oso
Creek/Parkway Action Demonstration Project, and approving acceptance of the grant from
the National Estuary Program.
The foregoing motion passed by the following vote: Capelo, Garcia, Gonzales, B. Longoria,
J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper absent.
* * * * * * * * * * * * *
Mayor Neal called for consideration of consent motions, resolutions, ordinances and
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Regular Council Meeting
November 11, 1997
Page 22
ordinances from previous meetings on Items 10 through 19, and Council members requested that
Items 10, 13, 14, and 15 be withheld for discussion. There were no comments from the audience on
any of the consent items. City Secretary Chapa polled the Council for their votes and the following
were passed:
11. M97-329
Motion approving a supply agreement for emulsion oil (SS -1) in accordance with Bid
Invitation No. BI -0019-98 with Koch Materials, Corpus Christi, Texas, based on the low bid
of $34,776. The term of the contract will be twelve months with option to extend for up to
two additional twelve month periods, subject to the approval of the supplier and the City
Manger or his designee. This material is used by Street Services for maintenance of City
streets. Funds have been budgeted by Street Services for FY 97/98.
The foregoing motion passed by the following vote: Capelo, Garcia, Gonzales, B. Longoria,
J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper absent.
12. M97-330
Motion authorizing the City Manager or his designee to execute a three year contract with
First Southwest Asset Management, Inc. for those professional services required to prepare
the arbitrage/compliance calculations required by the Tax Reform Act of 1986, Section
148(F) of the Internal Revenue Code, with the option to renew for two additional periods of
one year each at a cost of $1,000 per general obligation bond issue and $1,500 per revenue
bond issue. For the current tax exempt bond issues, the annual fees would be $31,500.
The foregoing motion passed by the following vote: Capelo, Garcia, Gonzales, B. Longoria,
J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper absent.
16. FIRST READING ORDINANCE
Annexing six tracts of land adjacent to the city limits in the vicinity of the Wood River
Subdivision; providing for a service plan for the annexed tracts of land; providing that the
owners and inhabitants are entitled to all rights, privileges, and burdens of other citizens and
property owners of the City of Corpus Christi and are subject to and bound by the City
Charter, Ordinances, Resolutions, and Rules; providing for amendment of the official maps
of the City of Corpus Christi.
The foregoing ordinance passed on first reading by the following vote: Capelo, Garcia,
Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper
absent.
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Regular Council Meeting
November 11, 1997
Page 23
17. ORDINANCE NO. 023128
Amending the Code of Ordinances, Chapter 49 - Streets and Sidewalks, Article I, Section
49 - 17 - Conditions and Requirements for Permit, by clarifying that the managing tenant's
approval, and, if vacant, the managing property owner's approval is required for a temporary
street closure; by adding a new requirement providing for at least 90% approval of the
managing tenants or, if vacant, managing property owners of the property abutting the
affected street section to be temporarily closed for a public event within the Downtown
Management District area.
The foregoing ordinance passed on second reading by the following vote: Capelo, Garcia,
Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper
absent.
18. ORDINANCE NO. 023129
Rescinding Ordinance No. 10814 which authorized the closure of a portion of Antelope
Street lying between the east right-of-way of Azalea Drive and the east line of Driscoll
Village Subdivision.
The foregoing ordinance passed on second reading by the following vote: Capelo, Garcia,
Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper
absent.
19. ORDINANCE NO. 023130
Authorizing the City Manager or his designee to execute a sixty -year lease with David and
Monika Page for the occupancy of 1,498 -square feet of the existing North Tancahua Street
Right -of -Way adjacent to the west boundary line of Lots 4, 5, and 6, Block 29, Beach Portion
to repair and maintain a permanent building structure, five air-conditioning units with
concrete pads, hurricane fence, and electrical meter box in consideration of 5411 as payment
for the first five year lease increment.
The foregoing ordinance passed on second reading by the following vote: Capelo, Garcia,
Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper
absent.
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 10, custodial service for police facilities.
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Regular Council Meeting
November 11, 1997
Page 24
Responding to Council Member Betty Jean Longoria, Mr. F.D. Glenn, Purchasing Agent,
explained that Member's Building Maintenance Corporation did bid in accordance with the process
and they also submitted an alternate bid which stated that if the city accepted all three bids they
would provide an additional price break. Mr. Hennings said the other bidders have the same option
to submit an alternate bid, and it is not uncommon for a company to bid "all or none."
City Secretary Chapa polled the Council for their votes as follows:
10. M97-328
Motion approving a supply agreement for Custodial Service with Member's Building
Maintenance Corp., Dallas, Texas for the Police Department's various police facilities which
includes the Police Training Building, the Vehicle Impound Building, Calallen Assembly
Area, and the Flour Bluff Assembly Area in accordance with Bid Invitation No. BI -0169-97;
Floors Service for Main Police Building and all outlying Police Buildings in accordance with
Bid Invitation No. BI -0170-97 and Custodial Service for the Police Department's main
building in accordance with Bid Invitation No. BI -0171-97, based on low bid meeting
specifications for an estimated annual expenditure of $123,708. The term of the agreement
will be for twelve months with 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
have been budgeted in FY 97/98 by the Police Department.
BI -0169-97 $ 15,358.92
BI -0170-97 $ 12,371.04
BI -0171-97 $ 95.978.04
Total $123,708.00
The foregoing motion passed by the following vote: Capelo, Cooper, Garcia, Gonzales, B.
Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye."
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 13, Carroll Lane Trunk Main rehabilitation.
Council Member McNichols pointed out that this item involved rehabilitation of a relatively
short distance of a trunk main that will cost almost $1 million, while repairs to the Wesley Seale
Dam, a structure which serves the whole region, will cost $10 million to $20 million He said people
need to keep in perspective the many utility system needs that exist.
City Secretary Chapa polled the Council for their votes as follows:
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Regular Council Meeting
November 11, 1997
Page 25
13. M97-331
Motion authorizing the City Manager, or his designee, to execute a contract in the amount
of $815,400 with Jalco, Inc. for the Carroll Lane Trunk Main Rehabilitation, Phase II project.
The foregoing motion passed by the following vote: Capelo, Garcia, Gonzales, B. Longoria,
J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper absent.
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 14, instrumentation maintenance at water plant.
Council Member Martin said he was using this item to comment on another Stevens Water
Treatment Plant item --emergency repairs to a pump at the treatment plant that Mr. Hennings
informed the Council about in a memo dated November 6, 1997. Mr. Martin said he was sure that
the action Mr. Hennings took regarding that item was totally proper, but he suggested that such items
be brought before the Council for their confirmation in some way because it is a way of giving notice
to the public and having it recorded in the minutes. He said that although that was a small item
($22,000) it could easily have involved a much greater expense.
City Secretary Chapa polled the Council for their votes as follows:
14. M97-332
Motion authorizing the City Manager or his designee to execute a contract in the amount of
$110,468 with C.W. Campbell Electric, Inc. for the O.N. Stevens Water Treatment Plant:
On -Going Instrumentation Maintenance Program.
The foregoing motion passed by the following vote: Capelo, Garcia, Gonzales, B. Longoria,
J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper absent.
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 15, future public beach access on Mustang Island.
Council Member Garcia said he had been asked if there was any way the city could build out
Magee Beach in front of Memorial Coliseum, and he asked if there were any grants available for that
use. Mr. Hennings replied that the Coastal Management Program would be a possible source. He
said the first step would be to develop a proposal about what needs to be accomplished there. Mr.
Tom Utter, Assistant City Manager for Development Services, said the city had received a Coastal
Management grant to replace sand at Corpus Christi Beach. He said there were not any plans for
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Regular Council Meeting
November 11, 1997
Page 26
Magee Beach, but they could look into it.
Council Member John Longoria said a review should be conducted of all the parks along
Shoreline and Ocean Drive, specifically Cole Park.
City Secretary Chapa polled the Council for their votes as follows:
15. M97-333
Motion authorizing the City Manager or his designee to sign a grant contract with the Texas
General Land Office in the amount of $85,000 for the purpose of acquiring a minimum of
3.5 acres of land on Mustang Island for future beach access.
The foregoing motion passed by the following vote: Capelo, Garcia, Gonzales, B. Longoria,
J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper absent.
*************
Mayor Neal announced the closed session, pursuant to Texas Government Code Section
551.071 regarding the following• issues related to the new landfill permitting application to the
Texas Natural Resource Conservation Commission; and regarding collective bargaining with Corpus
Christi Firefighters Association.
The Council went into closed session.
The Council returned from closed session.
* * * * * * * * * * * * *
Mayor Neal called for the City Manager's report. Mr. Hennings distributed a fact sheet to the
Council and said there has been some concern expressed recently about how staff is handling the
situation of the repair of a portion of the roof at the airport terminal, about which he had previously
informed the Council. He said the fact sheet describes the steps that have occurred in that situation,
and he wished to put to rest the allegation that an outside engineer recommended that the terminal
be evacuated and that staff refused to respond. He said that allegation is not true.
Mr. Hennings said the critical time at the airport was in July. As indicated in the fact sheet,
the engineering report was submitted in July and based on the information that was available at the
time, they recommended more study. A specialist was brought in to review the work and to make
recommendations; as that process continued there was ongoing work at the airport that uncovered
additional sections of roof structure that had suffered damage, which heightened the level of concem.
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Regular Council Meeting
November 11, 1997
Page 27
Finally, at the end of July it was determined that the facility should be evacuated until temporary
shoring could be put in place. He said the evacuation was executed and over one night the contractor
and the specialist engineer supervised the installation of shoring. The next day the terminal was put
back in service with the shoring in place.
In reply to Mayor Neal, Mr. Hennings said no local sales or property taxes are used to operate
the airport; it is all funded by revenues generated by the airport as well as through federal
government grants and passenger facility charges.
Mr. Hennings noted that the Council had received a report about the TNRCC rescheduling
their consideration of the Nueces Estuary effluent diversion project. As a result of that rescheduling,
staff now has time to redo the process of selecting and hiring the engineering firm. He said they will
issue a request for proposals for that project. He said issues scheduled for next week include the first
quarterly report on the budget; the proposed capital improvement plan; the quarterly report from the
Business Alliance; and the monthly report from Freese & Nichols.
Mr. Hennings pointed out that the December 30th Council meeting would fall between
Christmas Day and New Year's Day, and following a discussion with Mr. Chapa, he said the
Council may want to consider canceling that meeting. In addition, meetings are not usually
scheduled on the first Tuesday of the month (which would be December 2nd and January 6th).
Council Member Martin said considering all of the major issues facing the Council, he thought they
should meet on January 6th, even if it is to discuss a single item, such as the budget or the
performance evaluation.
Council Member Gonzales made a motion to not hold a Council meeting on December 30th
and to schedule a Council meeting on January 6th; seconded by Council Member Capelo. The
motion passed unanimously (Cooper and McNichols absent).
In his report, Mayor Neal said he and other Council members had received a letter from a
former city employee who was questioning recent Council actions concerning the city' s
Compensation and Classification Plan. Mr. Hennings said the Council did amend that plan by
making a few changes in classifications in response to classification studies that have taken place
during the year. The Mayor asked Mr. Hennings to review that plan at a meeting in the near future.
He then called for Council concerns and reports.
Council Member Martin asked about a meeting being coordinated by the port industries of
Corpus Christi and the Port Authority on November 25, 1997. Mayor Neal explained that elected
officials in the area were being invited to attend a luncheon and harbor cruise of the ship channel
industries. City Secretary Chapa said the meeting will have to be posted and open to the public.
Mr. Martin also commented that the city had paid the Austin law firm of Brown & Potts
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Regular Council Meeting
November 11, 1997
Page 28
$99,000 for the month of September, of which $4,200 was for legal services and $95,000 was for
engineers they hired at the city's direction without any requests for proposals or competitive
selection. He said although City Attorney Bray had indicated that was legal, Mr. Martin said he
thought it was an intentional circumvention of the law and it was inappropriate. Mr. Hennings said
he thought that was an exceptional case, and he said he would give the Council a report on current
agreements the city has with legal firms. He said he thought they could more precisely define the
situations where such actions would be appropriate. Mr. Martin emphasized that the engineering firm
only billed the city for hours worked but there was no statement as to the work performed. He added
that he thought the whole policy should be examined.
Mr. Martin requested a legal opinion as to the city's ability to allow the use of travel trailers
at the Bayfront Plaza Convention Center and Memorial Coliseum. Mr. Martin also referred to a
memo in the Council's packet concerning whether workers compensation insurance would be
required for certain city contracts. Mayor Neal said he thought if a vendor was doing work for the
city on his own premises and off city property, then workers compensation insurance would not be
required. Mr. Martin said one situation in question involved a vendor picking up city vehicles and
driving them to the vendor's worksite for repairs. The Mayor said that situation creates the third
party liability claim under the city's self-insurance fund on automobile liability exposure, which he
briefly explained. Mr. Martin suggested that staff further review that situation with insurance
representatives.
Mr. Martin asked Mr. Hennings to schedule discussions on the reinvestment zone revenue,
including a comparison of assessments from last year and the coming year; annexation of Mustang
Island; and a closed session discussion on the litigation involving City Hall.
Council Member Garcia asked if an employee protection plan could be utilized. Mayor Neal
replied that such a plan does not provide legal defense nor does it have statutory limitations in the
coverage. Mr. Garcia said he also received a letter from a citizen who had received a parking ticket
on a weekend while visiting the U.S.S. Lexington Museum on the Bay. Mr. Hennings said there is
an arrangement for paid parking in the area of the Lexington and the Texas State Aquarium, and he
pointed out that weekends are the busiest times for those attractions. He added that he would provide
a report on it.
Mr. Garcia also referred to a memo to the Council concerning minority business enterprise
participation in city contracts. He said that according to the memo, the breakdown of MBE contracts
in the minority category for large contracts completed during FY 96-97 were 10.6% Hispanic, 32%
women, and 0.3% American Indian. Mr. Hennings said the intent is to use the increased flexibility
that the city has on contracts that are less than $15,000 to try to encourage minority businesses to
participate in those contracts. He said since the program has been in effect, there has been an
increased influx of minority businesses. Mayor Neal said he understood that the city was following
federal law in that the definition of "minority" includes women. Mr. Garcia said he thought the city
Minutes
Regular Council Meeting
November 11, 1997
Page 29
needed to set higher goals with regard to minority business participation, and he requested a copy
of the federal law pertaining to that.
Responding to another question from Mr. Garcia, Mr. Hennings said staff would conduct an
analysis of recent contracts in which no bids were received. He said usually the main factor in that
situation is that the contractors who normally bid on city projects have heavy workloads at the time.
Council Member Betty Jean Longoria requested the same information sought by Mr. Martin
concerning travel trailers. She also asked about the buy-out proposal in the northside area. Mr. Utter
said a meeting was held that day of many of the parties involved, but he did not know the outcome.
He pointed out that the proposal is being studied by a district judge.
Council Member Gonzales asked if the city had negotiated with the refineries in the buy-out
proposal for the cost of the streets in that area, and Mr. Utter said there have not been any
negotiations with the city. Mr. Hennings pointed out that there is a process that would have to be
followed, including a public hearing with the City Council, if a street is to be closed and abandoned
and the right-of-way acquired. Dr. Gonzales also asked that staff conduct a thorough review of the
conditions of the city -owned youth sports parks. A brief discussion ensued, and Mr. Hennings said
staff would conduct that study, although it probably would take a few months to do so in such an
extensive manner. Dr. Gonzales requested a status report of employee grievances and the
effectiveness of that process.
Council Member Capelo thanked the 82nd Airborne Division Assocation and the Mayor's
Committee on Veterans Affairs for inviting him to speak at the Veteran's Day ceremonies.
Council Member Betty Jean Longoria echoed Dr. Gonzales' concerns about the condition
of youth sports parks, and noted that some funds that had been earmarked for those parks would not
be available since the Community Progress Partnership initiatives were not approved by voters. With
regard to funding for the parks, she said she did not want to face the same situation in next year's
Community Development Block Grant program that occurred with the Planning Commission this
year. Mrs. Longoria also requested a copy of the calendar of events sponsored by the Mayor's
Committee on Veterans Affairs, which Mayor Neal agreed to provide.
Council Member John Longoria suggested the the Park and Recreation Advisory Committee
assist in that study of the conditions of youth sports parks.
There being no further business to come before the Council, Mayor Neal declared the
Council meeting adjourned at 8:45 p.m. on November 11, 1997.
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