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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 Minutes 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 Minutes 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 Minutes 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 Minutes 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 Minutes 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 Minutes 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 Minutes 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 Minutes 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. Minutes 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 Minutes 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. Minutes 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 Minutes 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, Minutes 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 Minutes 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: Minutes 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 Minutes 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. Minutes 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. Minutes 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: Minutes 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 Minutes 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. Minutes 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 Minutes 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. * * * * * * * * * * * * *