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HomeMy WebLinkAboutMinutes City Council - 12/23/1997I 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 December 23, 1997, which were approved by the City Council on January 6, 1998. WITNESSETH MY HAND AND SEAL, this 6th day of January, 1998. Armando Chapa City Secretary SEAL 0 MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting December 23, 1997 2:00 p.m. PRESENT Mayor Loyd Neal Mayor Pro Tem Alex L. Garcia Jr. Council Members: Melody Cooper Arnold Gonzales Betty Jean Longoria John Longoria Edward Martin Dr. David McNichols ity Staff: City Manager Bill Hennings Assistant City Attorney Alison Gallaway City Secretary Armando Chapa Mayor Neal called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Rev. E.F. Bennett (retired), following which the Pledge of Allegiance to the flag of the United States was led by Council Member McNichols. 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 regular Council meeting of December 16, 1997, and there being no corrections, he proclaimed them approved as presented. * * * * * * * * * * * * * Mayor Neal referred to the Board and Committee appointments on the day's agenda, and the following appointments were made: Libr Board Patty Nuss Gloria Rodriguez Carroll Matthews Oil & Gas Advisory Committee Howard Fels Jerry Dewbre ** Senior Companion Program Advisory Committed Teresa Cisneros Marie Gutierrez Pete Oliver Barbara Youngs * * * * * * * * * * * Minutes Regular Council Meeting December 23, 1997 Page 2 Mayor Neal opened discussion on Item H., consideration of executive search firm proposals for the new city manager selection. City Secretary Chapa said his office had received proposals from the following seven firms, which he briefly described: (1) Ralph Andersen & Associates, which proposed a fixed professional fee of $13,500, reimbursement of expenses approximated at $7,000-$9,000, and they propose 12 weeks to 90 days to accomplish the search; (2) David M. Griffith & Associates, $12,500, reimbursement of expenses capped at $3,500, approximately 60-90 day search; (3) The Mercer Group Inc., $12,500, reimbursement of expenses capped at $5,000, 60-90 day search; (4) Norman Roberts & Associates Inc., $17,000, reimbursement of expenses not to exceed $8,000, 14-15 week process; (5) The Oldani Group, $18,500, reimbursement of all expenses, 90-120 day search; (6) The Par Group, $14,500, reimbursement of expenses approximated at $4,000, search not longer than 90 days; and (7) Slavin Management Consultants Inc., $13,965, reimbursement of expenses not to exceed $6,284.25, 60-90 day search. Mayor Neal said the Council members had been furnished an extensive amount of information on each of the firms, and he thanked the staff of the City Secretary's Office for their efforts in that regard. The Mayor said he thought the Council was going to narrow the list to three search firms, which would then be asked to give presentations to the Council on January 6, 1998. The Council members then cast three votes each out of the seven executive search firms listed, and the three firms receiving the most votes were: Ralph Andersen & Associates; David M. Griffith & Associates; and The Mercer Group Inc. Mr. Chapa said they would contact those three firms and ask them to be present during the January 6th Council meeting. ************* Mayor Neal called for petitions from the audience. Mr. Abel Alonzo, 1701 Thames, thanked Mayor Neal for his initiative and the Council members for their leadership in the area of inclusiveness and diversity. Mr. Phil Rosenstein said he strongly objected to a statement made by Council Member McNichols during the October 9, 1997 Council meeting concerning the cost of repairing Wesley Seale Dam and the seawall in relation to the overall cost of the capital improvement program. Mr. Rosenstein said the dam and the seawall are important issues and the public should not be told otherwise. Mr. J.E. O'Brien, 4130 Pompano, questioned whether there had been a change in policy without discussion regarding the time during the Council meeting when public comments are heard. He said that during the last three Council meetings, public comments were heard at 3:40 p.m., 3:20 Minutes Regular Council Meeting December 23, 1997 Page 3 p.m., and 6:43 p.m. respectively. Mayor Neal pointed out that during this Council meeting it was about 2:30 p.m. when public comments were being heard. He added that it is the Mayor's responsibility in setting the agenda when public comments are heard. He said he had discussed the issue with each Council member and had moved the time of the public comments around to see if it would speed up the Council meeting at all. The Mayor said if they are not penalizing the public to a great degree they will continue the current practice; however, if the public comments are heard much later in the meeting he said he would reconsider the issue. He added that they would not move public comments to the end of the meetings. Council Member Gonzales said that long presentations prior to the public comment portion are a burden on the public, and he said he hoped they could return to having public comments at the beginning of the Council meetings. Mr. Leon Perez, 904 Buford, said he thought the Council was being too selective in the process of choosing a new city manager. He also complained about uncollected garbage along the streets in District 2 where he lives, and he said he hopes that the new city manager will help resolve that problem. Mayor Neal asked City Manager Hennings to comment on the city's solid waste collection program. Mr. Hennings explained that garbage is picked up twice a week, light brush is picked up every other Wednesday, and bulky items and heavy brush are picked up on a progressive basis (depending on the work load it takes from four to eight weeks). He said those collections are made from customers who pay for garbage collection on their utility bills. Mr. Hennings added that there are properties in the city who are not customers for garbage collection, and there is a code enforcement program in the Neighborhood Improvement section of Housing and Community Development to deal with that. He said the code enforcement process is cumbersome and it takes time to be resolved, and the city relies on incoming calls from neighbors to report such problems. The City Manager said utility customers can also dump trash at the landfill for free when they bring their utility bill with them. Responding to Council Member Martin, Mr. Hennings announced the trash pick-up schedule for that week (which was slightly different because of the Christmas holiday). In reply to another question from Mr. Martin, Mr. Andy Leal, Director of Solid Waste Services, said that in the case of a mattress or couch thrown into the right-of-way or lot of a non - customer, the Solid Waste crews conduct a complete sweep of the city as part of the heavy brush pick-up. Mr. Leal said that when light brush is collected on Wednesdays, the crews pick up yard debris that is grindable and separate it from other material that does not go into the composting pile. He added that they do not like to put heavy items such as couches into the garbage trucks because it damages them, but those heavy items are collected during the heavy brush pick-up. He noted that last year they picked up almost 19,000 tons of heavy brush, and this year with the same crews and cycles (about nine times through the city), they are projecting to have collected about 23,000 tons. Council Member Betty Jean Longoria commented on problems of increased dumping of trash around the city, including in specific locations that she noted. She asked if there was an ordinance Minutes Regular Council Meeting December 23, 1997 Page 4 that needed to be strengthened to deal with trash problems. Mr. Hennings replied that staff had a proposal that they were preparing to bring to the Council to give the city additional tools in that area. Mr. Leal said the proposal involved accepting a grant for another compliance officer, and he added that they need to review the policy regarding the types of materials they pick up. There was further discussion regarding different aspects of Solid Waste services, including the point Mr. Hennings made that it would cost several hundred thousand dollars to add one brush crew. He added that staff would prepare a report on the productivity of the Wednesday brush pick-up. Mr. R.F. Hasker, 1813 Wallace, questioned whether staff could try to circumvent the tax cap in what he said was the same way they did with the voter -approved 6% rate increase, which he said amounted to 18% for the three utilities. Mr. Hennings replied that a 6% increase in water rates, a 6% increase in wastewater rates, and a 6% increase in gas rates does not constitute an 18% increase. He added that the tax rate cap is 68 cents but the City Charter provides that voter -approved bonds can be supported by an increment that is outside the tax cap. Mayor Neal stated that on December 9, 1997, Mr. Neal Trolinger addressed the Council during the public comment portion regarding the "scoping" hearings that were being held by the Lavaca-Navidad River Authority (LNRA). The Mayor said the Council had received a copy of a letter dated December 16, 1997, from Mr. Emmett Gloyna, LNRA General Manager, in response to some of the comments made by Mr. Trolinger. The Mayor read into the record portions of Mr. Gloyna's letter as follows: with regard to the "privatization" of Lake Texana, Mr. Gloyna said that "LNRA is an agency of the State of Texas operating under the purview of the Texas Natural Resource Conservation Commission...the State of Texas owns the water in Lake Texana, and LNRA and the Texas Water Development Board jointly own the water rights..." The Mayor said that with regard to Mr. Trolinger's statement that the LNRA Director did not want the citizens from Corpus Christi to speak during the scoping meetings, Mr. Gloyna replied that "there was never a discussion about whether (anyone) would be allowed to speak since the public was invited to express concerns." Mr. Trolinger had also said he was told that the main purpose for the requested title transfer of Lake Texana is for the resort development of Jackson County. Mr. Gloyna responded in his letter that the main reasons for LNRA's request for title transfer include: "significantly reduce cost of water to our customers (hopefully 20% to 30%); reduce micro -management by Bureau in Local and state affairs concerning water matters; and allow LNRA to operate project in more efficient manner." Mr. Gloyna added that after the transfer, "the project will be operated in accordance with the Lake Texana Land and Water Management Plan, approved by the LNRA Board of Directors on August 20, 1997." Mr. Trolinger had also stated that there had been a lobbying effort to prevent the Bureau of Reclamation from having a scoping meeting in Corpus Christi. Mr. Gloyna wrote that "the reason only Edna and Victoria were selected was because the state-owned water in Lake Texana is Minutes Regular Council Meeting December 23, 1997 Page 5 not involved, rather only the federal land and facilities." Mr. Trolinger had also commented that an LNRA staff person had suggested that the City of Corpus Christi is to sell water to cities in the Valley, and Mr. Gloyna stated that "no LNRA staffer made any statement or even discussed anything remotely akin to that." Mr. Gloyna said, in summary, that LNRA "has in fact managed the federal lands surrounding Lake Texana for 18 years and the dam and spillway for nearly 13 years, and the only management change envisioned with (the) title transfer concerns efficiency." Council Member McNichols said that transfers of projects such as this are common occurrences around the country, and he said questions arose because of concern that it would result in increased costs to the Corpus Christi area residents. However, he said, the title transfer would actually result in decreased costs. ************ Mayor Neal opened discussion on Item 3 pertaining to the new landfill. Mr. Tom Utter, Assistant City Manager for Development Services, said the Council had previously asked staff to work with the Chapman Ranch Owners Association and he said they have reached an agreement with them following an arduous process. He said the agreement basically changes the drainage pattern from its original flow down county roads 57 and 59 to a westerly direction down County Road 61. The agreement also provides land from the owners association to the city and it states that the city will maintain the ditch. Mr. Utter said the second item concerns completion of the design for ditch 61 and to revise the permit on file with the TNRCC. He added that the design and permitting costs are still lower than anticipated. Mayor Neal called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 3.a. M97-379 Motion authorizing the City Manager or his designee to sign an agreement with the Chapman Ranch Owners Association relating to drainage improvements associated with the new landfill application to the Texas Natural Resource Conservation Commission. The foregoing motion passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." Minutes Regular Council Meeting December 23, 1997 Page 6 3.b. M97-380 Motion authorizing the City Manager or his designee to execute Amendment No. 6 in the amount of $167,700 with EMCON for professional services required for the offsite drainage improvements, on-site drainage re -design, and permit modifications for the New Regional Solid Waste Facility for a revised contract total of $1,821,900. The foregoing motion passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 4, agreement with Resource Technologies Corp. Mr. Utter explained that about two years ago city staff began investigating the problem of methane gas at the J.C. Elliott Landfill. He said the city has so far installed about $800,000 in extraction equipment and another $1.3 million to $1.5 million is still needed. He said that there are three other landfills in the state that are using methane gas. Mr. Utter said that under the proposed agreement, Resource Technologies Corporation would install the rest of the gas -gathering equipment at the landfill (about $1.3 million), then they would use the methane gas to generate electricity. He said that although the city is not mandated to do so, it would purchase electricity from that company at approximately $0.045 per kilowatt hour (kwh), which is below what the city is paying now at the Greenwood Wastewater Treatment Plant. He said that if approved, this agreement would save the city the cost of installing and manning the extraction equipment, as well as potentially providing electricity at a lower cost than the city is currently purchasing. Mr. Utter said staff worked with Central Power and Light and Central and Southwest representatives, but he said CPL was not able to move forward with the city on the project. He said staff also sent information to Corpus Christi Power and Light and they also did not express interest in the project. He went on to explain that there are certain tax credits that are available to the private sector from which the city can also partly benefit. Mr. Utter said representatives from the Environmental Protection Agency were also involved in the project. City Manager Hennings said the proposal calls for building a short distribution connection to the Greenwood Plant across the street and the electricity generated on site would be consumed at the Greenwood Plant. If more electricity is produced than can be used at the Greenwood Plant, staff will try to determine ways to use it at other city facilities. Mayor Neal said he thought the proposed agreement was very broad, and he asked what the Minutes Regular Council Meeting December 23, 1997 Page 7 city's legal consultants in Austin had concluded. Mr. Utter said that one of the issues involved is the certificate of convenience and necessity (CCN), and at this time CPL holds that certificate, which he explained. Assistant City Attorney Gallaway added that "city facilities" are a defined term within the contract itself, and at this point the contract term is defined as the Greenwood Wastewater Treatment Plant, which is an exhibit to the contract. She said that in order to change that definition, it would require an agreement between the City Manager and the seller's agent. Mayor Neal pointed out that it would not require the approval of the City Council to do that. Responding to another question from Mayor Neal, Ms. Gallaway said the contract would give the City Manager the opportunity to designate facilities other than the Greenwood Plant, and in order to do that, an economic analysis would be needed to determine whether it would be reasonable for the seller to expand to other city facilities and to acquire a certificate of convenience and necessity. Mayor Neal said he was in favor of competition and of the city saving money when possible, but he expressed concern about setting a precedent with this proposal. Mr. Utter added that the attorneys had approved the agreement. City Manager Hennings said the provision cited by Ms. Gallaway does not give the City Manager any authority that is not in the law, and he said he would not object to amending the provision so that it would require the approval of the City Council rather than the City Manager. Council Member Martin asked if Resource Technologies was obligated to provide electricity to all city facilities if called upon to do so, and Mr. Utter said they were not, adding that it would have to be financially feasible for them to provide it to other city facilities. Mr. Martin said the city had no obligation to use Resource Technologies as opposed to other providers. Ms. Gallaway said this was a standard supply agreement in that whatever the city demands with regard to electricity for the Greenwood facility they are obligated to supply. Mr. Martin also asked if the bond stays in existence, and Ms. Gallaway said that once the city accepts the construction as complete, the bond goes away. Mr. Martin questioned the provision in the agreement regarding the consent of the City Manager --rather than the City Council --to extend the term of the agreement. Mr. Hennings said he had no objection to changing that provision to call for the City Council's approval of the term extension. Mr. Utter also discussed the provision for the renegotiation of the price, and a brief discussion ensued. In reply to Council Member Garcia, Mr. Joe West discussed the time elements involved in the proposed agreement, including the tax credits, posting of the performance bond, plans and specifications, and construction. Mr. Utter emphasized that similar projects have already been undertaken in other Texas cities, and Corpus Christi was not violating any regulations by doing this. Mr. Hennings added that this was not like any proposals from Corpus Christi Power and Light in that Minutes Regular Council Meeting December 23, 1997 Page 8 it is confined to city property and it does not propose to use CPL's facilities in any way. Council Member Gonzales asked Mr. Utter to explain in detail the process of methane gas collection and conversion to electricity, and Mr. Utter complied. He and Mr. West also addressed the issues of monitoring systems. liability against the landfill liner being punctured, and flaring systems. Mr. Garcia asked if this proposal would violate the city's franchise agreement with CPL, and Mr. Utter said it would not. Mr. Hennings also reiterated the benefits to the city under this proposal, and he pointed out that CPL would no longer sell electricity to the Greenwood Plant. Mayor Neal called for comments from the audience. Mr. Ralph Underbrink, representing Central Power and Light, said that while CPL commends the city for an innovative approach to this project, he said that the company would have to oppose an application for a certificate of convenience and necessity (CCN) if Resource Technologies applies for one. He explained the difference between a territorial CCN and a facilities CCN, and how those might apply to this proposal. Responding to Mr. Garcia, Mr. Utter explained that Resource Technologies would have to seek a CCN if the electric power was carried from the landfill across the street via wires to the Greenwood Plant. He said if Resource Technologies decided to take that action, they would have to bear the cost (including permitting costs). Mr. John Hartley said that CPL does not pay for litigation --it collects those costs from citizens. He added that this concept was sound and has been used in other areas, specifically in the Texas panhandle. In response to a question from Mr. Hartley, Mr. Martin said Resource Technologies would be responsible for providing all the power to the Greenwood Plant. Mayor Neal asked whether the Council would be voting on the delivery capacity or whether there will be specific wording in the agreement regarding the Greenwood Plant site as the city facility to receive the electricity; Ms. Gallaway said the latter. The Mayor also questioned a provision in the contract summary regarding the Department of Energy's renewable energy production incentive program. Mr. Hennings replied that that provision is a contingency if Congress appropriates funds for that program and the city is able to obtain some of those funds. Mayor Neal emphasized the importance of examining all the issues involved with proper consultation from the city's attorneys and the Public Utility Commission. The Mayor then asked City Secretary Chapa to restate the motion for Item 4 as it was listed on the agenda. Mr. Martin asked if it would be appropriate to add that such selected facilities for the purpose of this motion be the Greenwood Wastewater Treatment Plant unless changed by the City Council. Ms. Gallaway said that would be appropriate, and she added that the city is required to receive concurrence from the seller's agent on choosing any new facilities. Minutes Regular Council Meeting December 23, 1997 Page 9 Responding to Mr. Underbrink, Ms. Gallaway said Resource Technologies would have the option of selling excess power to CPL at avoided cost, to flare it, or to sell it to a third party. Mr. Gonzales made a motion to amend Item 4 to change the wording in the motion and in the contract to provide authority to the City Council to specify the Greenwood Wastewater Treatment Plant as the selected city facility. Mr. Garcia seconded the motion to amend, and it passed unanimously. Mr. Hennings asked if the Council wanted to specify that extensions of the term of the agreement would be subject to the City Council's consent (rather than the City Manager's). Mayor Neal said he would prefer leaving that to the Council. Mr. Martin made a motion to make that change in the contract as stated, seconded by Dr. McNichols, and passed unanimously. City Secretary Chapa polled the Council for their votes as follows: 4. M97-381 Motion authorizing the City Council to execute a Power Supply Agreement with Resource Technologies Corporation to provide electricity generated from landfill gas at the J.C. Elliott Landfill to the Greenwood Wastewater Treatment Plant at a price of $.045 per delivered kwh. The foregoing motion passed, as amended, by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." * * * * * * * * * * * * * Mayor Neal called for a 10 -minute recess. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 5, proposed Lake Texana title transfer. He then called for comments from the audience. Mr. J.E. O'Brien questioned how the title transfer would reduce payments to water customers when it was not yet known what the purchase price would be. He suggested that a statement be included saying that the city would support the title transfer provided there are actual savings to water customers. He also asked who the city should prefer owning the dam and who should control the development around the dam. He said this proposal opens the door to privatization and removes obstacles to privatization. Mr. O'Brien said he thought that during the hearing in Edna (which he did not attend), members of the Chamber of Commerce stated that it had been the original intention with Minutes Regular Council Meeting December 23, 1997 Page 10 the Lake Texana project to develop lakefront property. He also questioned why a scoping hearing was held in Victoria, and he said he opposed the proposal at this time. Mr. O'Brien said that if the project's debt is going to be refinanced, he wondered what interest rate would be obtained. City Manager Hennings reiterated some of the points made earlier in the meeting by Mayor Neal when he read portions of Mr. Gloyna's letter. He said the three main reasons for LNRA's request for title transfer include a significantly reduced cost of water to LNRA's customers (possibly 20% to 30%); reduced micro -management by the Bureau of Reclamation in local and state affairs concerning water matters; and allowing LNRA to operate the project in a more efficient manner. Mr. Hennings also reiterated that the Lake Texana Land and Water Management Plan, approved by the LNRA Board of Directors, does not contain any shoreline development schemes. He said the reason only Edna and Victoria were selected as locations for the scoping meetings was because the state-owned water in Lake Texana was not involved; rather, only the federal land and facilities. Consequently, the area residents who primarily benefit from the project recreation would want an opportunity to express their concerns. Council Member Martin said he thought it was LNRA's business to manage their own system, and he asked why the City of Corpus Christi was being asked to take a position on this issue at all. Mr. Hennings said there has been much public discussion and public meetings, and since the city works closely with LNRA, they did not want to proceed without the Council's concurrence. Mr. Martin then asked if LNRA was considering refinancing their debt. Mr. James Dodson, Regional Water Director, replied that the estimate of savings is based on what has been done on other projects. He explained that the process would involve discounting back to the present value the cash flow stream of the repayment --both the LNRA federal debt and the Texas Water Development Board federal debt. He said that assuming a favorable discount rate can be negotiated for that present value calculation, the buy-out amount would be appreciably less than the remaining principal owed. Mr. Dodson added that Corpus Christi has been unsuccessful in doing that legislatively, and LNRA is attempting to do it administratively by going through the process laid out by the Bureau of Reclamation. He said LNRA also has a bill in Congress that would attempt to do it legislatively if this process is not successful. Mr. Martin said he did not think the City of Corpus Christi had attempted the administrative procedure. Council Member McNichols commented that they met with representatives from the Bureau of Reclamation and they received information that the city would not be successful in utilizing that process, although they were not formally rejected; consequently, the city attempted the legislative process. Minutes Regular Council Meeting December 23, 1997 Page 11 Mr. Martin said he was not aware that a decision had been made that water from the Garwood Irrigation Company would come directly to Corpus Christi rather than being deposited in Lake Texana. Mr. Dodson replied that the first time the city dealt with that decision was when they were trying to get the Bureau to grant the easement across the federal facilities for the Lake Texana pipeline project and they were conducting the environmental assessment. He said they indicated through LNRA that the facility would not be used for transfer of water through Lake Texana. Mr. Martin said he did not remember seeing any cost estimates where that transition was made, and he requested information on when the decision was made as well, adding that he did not disagree with the analysis. Responding to Mr. Martin, Mr. Hennings and Mr. Dodson said the city pays its proportional share of LNRA's debt service and operation and maintenance costs for the Lake Texana water. Mr. Martin said he would encourage LNRA to take whatever steps are necessary to reduce their water costs. He added that while he was not opposed to this proposal, he was not necessarily in favor of it either because he did not think it was the city's business to get involved in this issue. He acknowledged that LNRA has been a strong ally with Corpus Christi and they have assisted the city in requests the city has made of them. Dr. McNichols said the city had nothing to lose and everything to gain by endorsing the proposed resolution. City Secretary Chapa polled the Council for their votes as follows: 5. RESOLUTION NO, 023176 Resolution directing the City Manager to prepare and file with the U.S. Bureau of Reclamation, comments on behalf of the City of Corpus Christi supporting the proposed transfer of title to the Palmetto Bend Project (Lake Texana) from the federal government to the Lavaca-Navidad River Authority; and directing distribution of this resolution. The foregoing resolution passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 6, Lavaca-Navidad River Authority debt payment. He called for comments from the audience. Mr. J.E. O'Brien asked if this was not another example of the deficiency in financial planning by city staff. City Manager Hennings replied that this was a mistake in the budget; however, the mistake was simply in not including this bond payment on the LNRA portion of the project, and the Minutes Regular Council Meeting December 23, 1997 Page 12 bond payments for the Nueces River Authority portion are in the budget. Mr. Hennings added that the whole process of those bond issues and the financing of that project is a manifestation of the capacity of the city's financial advisors and the team that put that project together. He said he did not agree with Mr. O'Brien's assessment. Council Member Garcia asked how this adjustment affected the bottom line in the budget. Mr. Hennings said it changes the unreserved fund balance by reducing it $455,755. Council Member Martin said that had this been included in the budget, it would have come out of the same source it was coming out of now; he added that it did not involve any additional costs or interest payments. Mr. Hennings added that the financial model that is used for longterm financial planning for the Utility Fund does include it. Mayor Neal said that the implication that this is another in a long line of staff mistakes is not proper. He said as a budget of about $300 million is being prepared, there will be occasional entries that will have to be adjusted and corrected. City Secretary Chapa polled the Council for their votes as follows: 6. ORDINANCE NO. 023177 Ordinance appropriating $455,755 from the Combined Utility Systems Unreserved Fund Balance; amending Ordinance No. 022993, which adopted the FY 97-98 Budget, by adding $455,755 to the Combined Utility Systems Fund to make the Lavaca-Navidad River Authority FY 97-98 Debt Service Payments. An emergency was declared and the foregoing ordinance passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 7, Police Department computer equipment. He called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 7. M97-382 Motion approving the purchase of computer equipment and software from the Texas Department of Information Resources based on the State cooperative purchasing arrangement. The equipment will be used by the Police Department to establish a gang database and funding is available through the Weed and Seed supplemental funding program. Total amount of the purchase is $34,490. Minutes Regular Council Meeting December 23, 1997 Page 13 The foregoing motion passed by the following vote: Cooper, Garcia, Gonzales, 13. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 8, Boys and Girls Club Weed & Seed agreement. He called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 8. M97-383 Motion authorizing the City Manager or his designee to execute an agreement with the Boys & Girls Club of Corpus Christi to provide $45,940 from the FY 97 Weed & Seed Program to implement a community youth project. The foregoing motion passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 9, advance funding for traffic signal improvements. He called for comments from the audience, and there were none. Council Member Martin said that the current four-way stop at the intersection of Cinunaron Boulevard and Wooldridge Road works and it would be a waste of money to put a traffic signal there. He said the criteria for signals seems to be only the amount of traffic present at a location. Mr. Hennings said the criteria included preventable accidents, and that intersection had one of the highest number of accidents in the last three years that would have been preventable with a signal. Mr. Martin said he thought the types of accidents that occurred there were "fender -benders"; however, fatal accidents have occurred at signalized intersections when people run red lights. Mr. R.H. Shackelford, Director of Engineering Services, referred to a listing of five warrants that are used to determine whether certain intersections justify having signals installed. He said staff contacted the Texas Department of Transportation and they were informed that substitutions can be made in the list of intersections to be signalized; however, that will delay the implementation of the project about six months Mr. Martin said there were locations throughout the city where signals may make sense because of the severity of accidents that have occurred there, because of school situations, etc. He said that signalizing the intersection of two collector streets results in speeding up traffic. Responding to Council Member Garcia, Mr. David Seiler, City Traffic Engineer, said that Minutes Regular Council Meeting December 23, 1997 Page 14 fatal or heavy -injury accidents would carry more weight than a fender -bender. He said that both TXDOT and the city consider preventable or remedial accidents as being the "T-bone" type of collision or left -turn collision. He added that an intersection can be moved up on the List due to the number of accidents there that have injuries associated with them. He said staff receives the accident records on a weekly basis from the Police Department. Mr. Seiler further described the process involved in determining if an intersection warrants a traffic signal, including those being proposed. Mr. Hennings said that if the Council wanted to substitute the intersection of Cimmaron/Wooldridge (which was being recommended) with Saratoga/Hunt, city staff could approach TXDOT to see if they could proceed with their April bid letting on the other signalization projects. In order to do that, the Council would need to amend the resolution. Council Member Cooper noted that Cimmaron/Wooldridge is in her district and she said she travels through that intersection almost every day. She said that Cimmaron Boulevard is very busy because people use it to access Saratoga from Airline and vice versa; she added that there is a school zone there and a signal would assist in slowing down traffic. Mrs. Cooper said she thought the Council should approve the proposal as presented without substitutions so as to allow all of the intersections on the list to proceed without delay. In reply to Mr. Garcia, Mr. Hennings said the intersection of Saratoga/Hunt meets more of the warrants than Saratoga/Long Meadow. Mr. Shackelford added that signalizing the Saratoga/Long Meadow intersection would encourage increased traffic through the neighborhoods there to Moore Plaza. City Secretary Chapa polled the Council for their votes as follows: 9. RESOLUTION NO. 023178 Resolution authorizing the City Manager or his designee to execute an advance funding agreement with the State of Texas, acting through its Texas Transportation Commission, setting forth responsibilities for the construction and maintenance of traffic signal and signal coordination improvements at various locations in Corpus Christi, and authorizing the deposit of $129,061.19 with the Texas Department of Transportation as the City's 20% share of construction costs. The foregoing resolution passed by the following vote: Cooper, Garcia, B. Longoria, J. Longoria, McNichols, and Neal voting "Aye"; Gonzales and Martin voting "No." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 10, emergency water main repairs. He called for Minutes Regular Council Meeting December 23, 1997 Page 15 comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 10. M97-384 Motion ratifying the City Manager's decision to authorize an agreement with Russell/Veteto Engineering, Inc. for emergency repair of a water main crossing at the Intercoastal Canal on Park Road 22 at an approximate cost of $20,000. The foregoing motion passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." * * * * * * * * * * * * * Mayor Neal announced the closed session, pursuant to Texas Government Code Section 551.071, regarding the following: City of Corpus Christi v. Manhattan Construction Company et al, No. 94-6459-A, 28th District Court, Nueces County, Texas; and regarding collective bargaining with the Corpus Christi Firefighters Association. The Council went into closed session. The Council returned from closed session. The Mayor then recessed the regular Council meeting for the meeting of the Corpus Christi Community Improvement Corporation. The Mayor reconvened the regular Council meeting. * * * * * * * * * * * * * Mayor Neal called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 12 through 20. The Council members did not request that any items be withheld for discussion, nor were there any comments from the audience. City Secretary Chapa polled the Council for their votes and the following were passed: 12. M97-385 Motion approving a supply agreement with Texas Mill Supply, Corpus Christi, Texas for approximately 6,125 disposable protective coveralls in accordance with Bid Invitation No. BI -0044-98 based on low bid for an estimated annual expenditure of $20,718.50. The term of the contract will be for twelve months with an option to extend for up to two additional Minutes Regular Council Meeting December 23, 1997 Page 16 twelve month periods subject to the approval of the supplier and the City Manager or his designee. These items are purchased into Warehouse Inventory and charged out to the using departments. The foregoing motion passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 13. M97-386 Motion approving a supply agreement for flashlights and batteries which includes approximately: 810 flashlights, 35,000 batteries, 375 lanterns, etc. in accordance with Bid Invitation BI -0062-98 with Wesco Distribution, Inc., Corpus Christi, Texas, for an estimated annual expenditure of $21,517.70 based on low bid. The term of the agreement shall be for twelve months with an option to extend for up to two additional twelve month periods, subject to the approval of the supplier and the City Manager or his designee. Funds have been budgeted in FY 97/98. The foregoing motion passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 14. M97-387 Motion approving the purchase of computer equipment and software from the Texas Department of Information Resources based on the State cooperative purchasing arrangement for equipment to establish a computer link between the Police Department and City Hall, and funding is available through the Law Enforcement Trust Fund. Total amount of the purchase is $22,159. The foregoing motion passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 15.a. ORDINANCE NO. 023179 Ordinance appropriating $1,916 from the Nueces County Community Action Agency in the No. 111 Tract 16 Community Center Trust Fund for improvements to Tract 16 Neighborhood Council Building located at 2835 Blake Street. An emergency was declared and the foregoing ordinance passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." Minutes Regular Council Meeting December 23, 1997 Page 17 15.11 M97-388 Motion authorizing the City Manager or his designee to execute a contract in the amount of $38,800 with Bechtol Construction Company for repairs and improvements to Tract 16 Neighborhood Council building. The foregoing motion passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 16.a. M97-389 Motion authorizing the City Manager or his designee to accept a grant in the amount of $162,823.86 and to execute Contract Change No. 06 to Contract No. 7460005741-98 with the Texas Department of Health for expanded tuberculosis prevention and control and outreach services during the period September 1, 1997 to August 31, 1998. The foregoing motion passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 16.b. ORDINANCE NO. 023180 Ordinance appropriating a grant in the amount of $146,101 from the Texas Department of Health for expanded tuberculosis prevention and control and outreach services during the period September 1, 1997 to August 31, 1998, (with the remainder of $16,722.86 paid directly by the State for in-kind services); adding $146,101 to the No. 162 Federal/State Grants Fund - Health Department. An emergency was declared and the foregoing ordinance passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 17. RESOLUTION NO. 021372 Resolution of the City Council of the City of Corpus Christi, Texas, approving the assumption of enterprise project designation from APAC Teleservices, Inc. to APAC Teleservices of Texas, L.P. and APAC Teleservices General Partner, Inc. pursuant to the Texas Enterprise Zone Act. The foregoing resolution passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." Minutes Regular Council Meeting December 23, 1997 Page 18 18. ORDINANCE NO. 023181 Ordinance closing and abandoning a 4,868 -square foot portion of a 10 -foot wide utility easement between Lots 1, 1A, 2, & 3, Block 1, Interstate Industrial Complex; subject to compliance with the specified conditions and the owners, French Ellison Trucking Center replatting the property within 180 days at their expense. An emergency was declared and the foregoing ordinance passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 19. ORDINANCE NO. 023182 Ordinance authorizing the City Manager to execute an extension of the lease agreements with Pagan -Lewis Motors dba Budget Rent -a -Car of Corpus Christi, Inc.; Coastal Bend Rent -a - Car, Inc. dba Avis Rent -a -Car; Mar Jean Texas, Inc. dba Hertz Car Rental; National Car Rental of Corpus Christi, Inc.; and JFC Leasing, LLC dba Dollar Rent -a -Car to extend the lease agreements for no more than 12 months, on a month to month basis, all leases to expire no later than December 31, 1998. An emergency was declared and the foregoing ordinance passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 20. ORDINANCE NO. 023183 Ordinance appropriating $10,000 from the U.S. Department of Energy in the No. 162 Federal and State Grants Fund to reimburse the costs of hosting the 12 Western States Clean Cities Coordinators Conference. An emergency was declared and the foregoing ordinance passed by the following vote: Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." * * * * * * * * * * * * * Mayor Neal called for the City Manager's report. Mr. Hennings repeated the schedule for city facilities during the holidays. He said the next Council meeting will be held January 6, 1998, when they will have presentations from the three executive search firms concerning the new city manager selection, and water issues will be the main topic during the January 13'" meeting. Minutes Regular Council Meeting December 23, 1997 Page 19 Mr. Hennings also noted that he had provided the Council with a copy of a letter he had received from TCI Cablevision, which he said has been underpaying the franchise fee to the city. Subsequently, the city challenged their position and a lawsuit was decided in the city's favor. He said they wrote to TCI asking them to make the franchise payment, as well as asking them to not collect those monies from their customers. He said TCI informed the city that they will collect in their next billing a retroactive payment from their customers to make up for the underpayment on the franchise fee, which was TCI's error. City Secretary Chapa said he was planning to include an item regarding the City Council District 2 position for the January 6'h meeting. Mayor Neal said he thought that item should be included. Mr. Chapa added that December 31, 1997, is the deadline for applications for that vacant position. Mayor Neal extended holiday wishes, and he reminded everyone of the Feast of Sharing to be held at the Bayfront Plaza Convention Center on December 24, 1997. He also requested a presentation during the January 20`h Council meeting regarding a new funding source (including a toll road option) referred to by Mr. Billy Parks, TXDOT District Engineer, during a previous Council meeting. The Mayor then called for Council concerns and reports. Council Member Martin reiterated that the applications for District 2 would be due in Mr. Chapa's office by December 31". He also said that the city should make TCI pay what it owes the city with interest, and at the same time try to prevent them from collecting that from TCI customers. Mr. Martin then made a motion to give direction to the City Manager to prevent TCI Cablevision from passing through to their customers TCI' s underpayment of the city's franchise fee. The motion was seconded and it passed unanimously. Several Council members wished everyone a Merry Christmas and Happy New Year, and thanked city staff for their efforts this year. Mrs. Cooper also recognized Police Chief Alvarez, the members of the J.E.T. Team and all those who have worked on the gang violence issue. She said that last year there were six deaths of young people directly attributed to gang violence, and this year there has been at most one. Mr. Garcia said there was still a concern regarding participation by minority businesses in city contracts. There being no further business to come before the Council, Mayor Neal declared the Council meeting adjourned at 5:55 p.m. on December 23, 1997. * * * * * * * * * * * * *