HomeMy WebLinkAboutMinutes City Council - 01/20/1998I 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 January 20, 1998, which were approved
by the City Council on January 27, 1998.
WITNESSETH MY HAND AND SEAL, this 27th day of January, 1998.
Armando Chapa
City Secretary
SEAL
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Council Meeting
January 20, 1998
2:00 p.m.
PRESENT
Mayor Loyd Neal
Mayor Pro Tem Dr. David McNichols
Council Members:
Javier Colmenero
Melody Cooper
Alex L. Garcia Jr.
Arnold Gonzales
Betty Jean Longoria
John Longoria
Edward Martin
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.
The invocation was delivered by Council Member Colmenero, following which the Pledge
of Allegiance to the flag of the United States was led by Council Member Martin.
City Secretary Chapa called the roll and verified that the necessary quorum of the Council
and the required charter officers were present to conduct the meeting.
Mayor Neal called for approval of the minutes of the regular Council meeting of January 13,
1998, and there being no corrections, he proclaimed them approved as presented.
* * * * * * * * * * * * *
City Manager Heimings announced that notices had been sent out for a public hearing on the
closure of a portion of right-of-way of San Felipe Street, but that item had not been placed on the
day's agenda for consideration. He said it would be rescheduled for February 10, 1998.
Mr. Hennings then gave a presentation on Item 2, a proposed electric service franchise for
Corpus Christi Power & Light Company, L.L.C. (CCPL). He said CCPL consists of business people
who have come together for the purpose of providing a competitive source of dependable electric
power to Corpus Christi consumers at significantly lower rates than are currently being provided by
Central Power and Light (CPL). Mr. Hennings said that in order for CCPL to do as it proposes, it
would need a franchise agreement with the City of Corpus Christi, as well as an ordinance adopted
by the City Council establishing the rate structure that will require CPL to carry their service to the
customers. Mr. Hennings then referred to a diagram describing the current electric distribution and
billing process and the proposal by CCPL.
Minutes
Regular Council Meeting
January 20, 1998
Page 2
The City Manager explained that the Public Utility Regulatory Act (PURA) grants cities with
original jurisdiction over electricity rates, of which Corpus Christi is one, the same rate -making
authority that the Public Utility Commission (PUC) has. He said the state law provides that a
regulatory authority (the city in this case) may, on its own motion, investigate and change utility
rates. He said staff recommended that if the Council wished to seriously consider CCPL's proposal,
they should follow the procedure previously used to modify CPL's rates. The recommended
procedure would involve the Council enacting a resolution that specifies what the intended action
is, and which would require CPL on a date certain in a public hearing to show cause why the
proposed change should not be made. He said the resolution could also specify that CPL could make
any other filings it wishes to prior to the public hearing, and that argument at the hearing would be
limited in some fashion.
Mr. Hennings went on to say that during the last session of the Texas Legislature, several
bills were introduced that would have addressed the issue of opening up access of the retail sale of
electricity; however, the Legislature did not pass any of those bills. There are some current "buy -
through" arrangements in place in Texas, but they involve interruptible power sources rather than
firm sources of power, with the exception of a pilot program in West Texas. With regard to CCPL's
proposal, he said staff would expect CPL to appeal the ordinances if they are approved by the Corpus
Christi City Council. He added that if the case is appealed, the PUC might not take any action until
the next session of the Legislature has convened. He also discussed potential risks to the city, and
he described CPL's history of providing electrical service to the city.
Mr. Hennings said he would recommend that the Council condition any approval of CCPL's
request on their absolute assurances that they will cover the amount of any expenditures the city
might incur or any revenue losses that might occur through franchise fee reductions, etc. He said
after the Council hears the public comment on this issue during this meeting, they could consider
a motion adopting the following (as stated on page 28 of the agenda material): to bring back before
the Council a resolution stating the Council's intent to further consider a pass-through tariff and set
a date for a public hearing to allow CPL and all others to address the issues; and authorizing staff
to engage Geoffrey Gay with the firm of Butler, Porter and Gay to develop a franchise agreement
for Council review and appropriate action.
He said if the Council took the action as stated above, staff would recommend the following
time schedule (all 1998 dates): January 27th - staff would bring to the Council the resolution that
would set the date of the public hearing for February 10th; February 3rd - deadline for the final draft
of the franchise and tariff ordinances from CCPL in order to provide them to CPL and any other
interested parties; February 10th - public hearing held; February 7th - first reading of the proposed
ordinances; March 17th - second and final reading of the ordinances; May 16th - effective date after
final passage of the ordinances.
The next presentation was made by representatives of Corpus Christi Power and Light
Minutes
Regular Council Meeting
January 20, 1998
Page 3
Company. Mr. Juan Garza said his business partners in that company are Mr. Kenneth Berry, Mr.
Bill Bates, and Ms. DayLee Snell. He said they are working on this venture with Power Choice,
represented at the meeting by former Texas Gov. Mark White and Mr. Robert Webb, an attorney
with experience in public utility matters.
Mr. Garza said CCPL estimates savings of 15% to 20%, and they intend to hold the city
harmless and will make up the revenues that the city would lose as a result of the decreased electric
rates. In addition, he said, CCPL will indemnify the city in the event the city incurs any expenses
in defending the rates before the PUC. He added that the electricity will be as reliable as it is
currently.
Mr. White noted that monopolies have grown throughout the country, and there is an effort
now to deregulate such areas as electric utilities in order to provide competition. He said with this
proposal, the City Council has an opportunity to provide competition for smaller electricity
consumers (small businesses and homeowners), and he pointed out that large industries already
receive lower rates from the large utility companies.
Mr. Webb commented on changes that have occurred with regard to Central Power and Light
over the last 25 years, and he referred to a graph showing CPL's revenue requirements versus their
estimates of what people would pay for the electricity at market price (approximately $400 million
a year according to the graph). He emphasized that if the proposal is approved, citizens in Corpus
Christi would have the choice of buying electricity from CCP!, or continuing to buy from CPL. He
said that prior to 1995. when the competitive generation market in Texas was deregulated,
competition was difficult if not impossible, although it has always been legally permitted because
monopolies are barred in this state.
Ile said CCPL's letters from three of the very large power marketers in the state indicate that
they can reduce the total cost of electricity by 15% to 20%, depending on load characteristics of
various customers. He said in this case, CPL wants to continue to direct that customers who utilize
CPL's distribution service also be required to buy their generation service, which was deregulated.
Responding to questions from Mayor Neal, Mr. Webb reiterated the savings from the total
cost of electricity that CCPL is projecting. He said CPL's customers are paying 100% of CPL's costs
for the South Texas Nuclear Plant, and CCPL's proposal would not include payment of that whole
amount but rather probably just part of it. In reply to another question from the Mayor, Mr. Webb
said that while the City of Corpus Christi would be legally able to purchase electric power on its
own, that does not mean that would be an efficient use of the city's resources. Mr. Garza added that
the city is not in the business of incurring risk but rather of reducing it.
In reply to Council Member McNichols, Mr. Webb briefly described the Texas -New Mexico
Power Company. He also discussed the expenses of the rate proceedings, which he said CPL would
Minutes
Regular Council Meeting
January 20, 1998
Page 4
have to pay according to the statute. Dr. McNichols also asked if CCPL's "buy -through" proposal
is the same concept that was rejected by the PUC in two previous cases. Mr. Webb replied that the
proposal was very similar; however, he said, the Commissioners' statements regarding their desire
to await legislative guidance on the issue were made while the Legislature was still in session last
year. Consequently, the Legislature adjourned without taking action on the electric utilities, and Mr.
Webb said the Commissioners have since said they will proceed without the Legislature's action.
He added that the action of the Corpus Christi City Council to establish and proceed with a program
as proposed is the best way to ensure that it will continue, despite the efforts of electric utility
lobbyists in the 1999 Legislature.
Responding to another question from Dr. McNichols, Mr. Webb said CCPL would need a
certificate of convenience and necessity if they were to build facilities and render "retail" utility
service. He said there is also a precedent that the buy -through rates, whether they are interruptible
rates or general rates, are legal; however, said Mr. Webb, CPL does not agree.
Council Member Garcia asked several questions about CCPL's proposal. Mr. Garza said city
staff has estimated that the city will incur about $10,000 to $12,000 in expenses to negotiate a
franchise agreement, and they have asked CCPL to indemnify the city for that amount, to which
company officials have agreed. He said those funds would come from the partners. He said CCPL
has also agreed to cover the additional large expense of appointing Mr. Webb as legal counsel to
defend the rate case before the PUC, if the city takes the action to do so. Mr. Garza said that if
CCPL's proposal is approved. every customer in Corpus Christi will have the choice of purchasing
CCPL's electric services. He said the benefit to the public ought to be that, as a result of competition,
customers enjoy lower electric rates, and he added that CCPL intends to pursue accounts of all sizes,
but not at the expense of any of them.
Mr. Garza and Mr. Webb described how the reliability of electric power will not be affected
by CCPL's entry into the market. Mr. Garza said that currently he is the only staff member of CCPL
and the owners intend to initially contract out to provide whatever level of services is required. Mr.
Garza and Mr. Webb also further discussed legal expenses associated with this endeavor.
Responding to Council Member Colmenero, Mr. Webb said they estimate that there is about
$250 million a year of electricity consumed in Corpus Christi sold by CPL. He said when CCPL
representatives met with representatives of various power sources, CCPL asked them to assume that
CCPL could garner about $20 million to $30 million of Corpus Christi's market. He said the price
would go down if CCPL's customer base increased. Mr. Webb also described the rapid growth of
private electric generation (generation by non -utilities). Mr. Colmenero raised the issue of
deregulation, and Mr. Webb pointed out that the proposals for deregulation, such as the one that was
considered last May by the Texas Legislature, did not call for deregulation immediately but rather
at a point in the future. He also discussed the potentially positive operating relationship that CCPL
could have with CPL with regard to the distribution of electricity to consumers.
Minutes
Regular Council Meeting
January 20, 1998
Page 5
Council Member Cooper said that while she is concerned about saving money for consumers,
she questioned why the city would involve itself in this venture when there are so many other
pressing issues with which it must contend. Mr. Webb said one of the reasons to act now rather than
later is the amount of money that consumers can save by being able to purchase their electricity at
a lower rate. He also said that the actual process of developing and passing a rate ordinance is not
particularly labor-intensive with regard to city staff commitment. He said it is rare for a city
employee to participate, either as a witness or otherwise, in a rate appeal A discussion ensued
regarding the legal challenges that may be raised and how CCPL would proceed in that event. Mr.
Webb said there are a number of Texas cities which have more than one franchised electric utility
serving there; on the other hand, it is unusual for a company to enter a municipal market with the
specific purpose of establishing competition through the use of the buy -through tariff, as proposed
by CCPL. Mrs. Cooper said she thought it was premature to take action on this issue at this time,
citing future action that may be taken by the Legislature.
Council Member Martin said the issue the Council was considering that day was whether to
state that it was uninterested in CCPL's proposal, or to set a public hearing to further consider it.
Responding to Council Member Betty Jean Longoria, City Attorney Bray said the issue of
whether CCPL would be required to have a certificate of convenience and necessity is highly
debatable legally, and it would be one of the issues considered by the PUC if it reaches that point.
Council Member John Longoria questioned staff's recommendation on this issue. Mr.
Hennings agreed that there is some doubt about the outcome of CCPL's proposal, but he said he
thought the process should proceed if there are no compelling reasons against doing so. He said they
had discussed the issues that need to be dealt with to ensure that the city government is protected
against any expenditures or loss of revenue from the proposal.
Mr. Bruce Evans, President of Central Power and Light Company, said that when the electric
industry is deregulated in Texas, many legitimate companies will have the opportunity to serve
customers with full choice of electric power. He said CCPL's proposal is being made too soon, and
he said that under current regulatory law, "retail wheeling" is prohibited. Mr. Evans added that CPL
supported one of the bills that was introduced during last year's legislative session, and they will
support it again during the 1999 session.
Mr. Evans said that CPL feels there are four main areas that should be addressed regarding
deregulation: competition should benefit all customers, rather than a select group; CPL needs to be
able to continue to recover the costs of the investments it has made in power plants, lines, and
infrastructure in a regulated environment where those investments were deemed prudent; reliability
should be addressed; and the competition should be fair. He then introduced people who were
present on CPL's behalf: Mr. Phil Ricketts, past chairman of the Public Utility Commission, and Mr.
Preston Kissman, Vice President of Electric Delivery.
Minutes
Regular Council Meeting
January 20, 1998
Page 6
Responding to Mr. Garcia, Mr. Evans said he did not understand where CCPL's proposed
cost savings could be achieved. He added that it is questionable whether every company that enters
the electric industry, once it is deregulated, will be required to have a franchise.
Dr. McNichols asked if CCPL's proposal is essentially the same as those which have been
previously rejected by the PUC, and Mr. Ricketts replied that it was. He said CPL believes that the
Council should not approve CCPL's proposal because it has been decided by the PUC. He also
further discussed the certificate of convenience and necessity, and said CPL believes that an entity
such as CCPL would be required to have that certificate under current law.
Mr. Martin asked whether CPL would object to CCPL's proposal if there was agreement by
all parties that it was legal. Mr. Ricketts replied that CPL would not object, and he added that they
are in favor of competition. In reply to other questions from Mr. Martin, Mr. Ricketts said CPL's
franchise agreement with the City of Corpus Christi expires in the year 2000, and he also discussed
the issue of dual certification.
Mayor Neal called for comments from the audience.
Mr. Glynn Pugh, 725 Harrison, said the City Council has three directions in which it can
proceed on this issue: make no decision and continue with CPL; approve a franchise with CCPL;
or consider a city -owned electric system.
Mr. J.E. O'Brien, 4130 Pompano, said he would be in favor of going forward with this issue
and holding a public hearing. He questioned why the city should only allow CPL to sell power at the
high prices that customers have been paying.
Mr. Leon Perez, 904 Buford, criticized CPL and he questioned variances on his electric bill.
Ms. Carline Shannon Gunter said she wanted to know how many magnetic electricity devices
are present in the slab foundations of houses and businesses.
Mayor Neal asked City Secretary Chapa to read the proposed motion as stated in the agenda
material, with Mr. Hennings' suggestion to substitute the words "further consider" for the word
"adopt" in the first part of the proposed motion. The following motion was made and seconded by
the Council: Motion to bring back before the Council a resolution stating the Council's intent to
further consider a pass-through tariff and set a date for a public hearing to allow CPL and all others
to address the issues; and authorizing staff to engage Geoffrey Gay with the firm of Butler, Porter
and Gay to develop a franchise agreement for Council review and possible action.
Mr. Longoria asked if the two elements in the motion could be considered separately.
Responding to a question from Mayor Neal, Mr. Hennings said it was important that the city have
Minutes
Regular Council Meeting
January 20, 1998
Page 7
in writing the necessary assurances prior to the public hearing so that the Council can make the most
informed decision possible at the public hearing.
Mayor Neal said that as the Council prepared to vote on this issue, they should be aware of
the possibility that they will not only be acting on behalf of the City of Corpus Christi, but usurping
the role of the Public Utility Commission and the Legislature.
Council Member Gonzales said the Council was merely setting the public hearing with its
action. Mr. Martin disagreed with Mayor Neal's comment, saying that in the state of Texas, the city
has original jurisdiction, and a rate case such as this has to be initiated through the City of Corpus
Christi, which was not usurping the authority of any entity.
Mr. Garcia said the Legislature will address this issue next year and the city has many other
pressing concerns to deal with: Mrs. Cooper agreed with Mr. Garcia. Dr. Gonzales said that
sometimes it is a long process for an issue to be considered by the Legislature, and he reiterated that
the Council should hear the public's comments on CCPL's proposal. Mr. Colmenero said the
Council did not have all the information at that time to make a wise decision, and more input can
be gathered during the public hearing. Mrs. Longoria said she favored holding the public hearing.
Mayor Neal said his previous comment was not an endorsement or denial of the public
hearing process, but rather it was a statement as he perceived it as to where the Council was putting
itself in the action.
Mr. Chapa polled the Council for their votes on the motion as previously stated, and it passed
by the following vote: Colmenero, Gonzales, B. Longoria, J. Longoria, Martin, and Neal voting
"Aye"; Cooper, Garcia, and McNichols voting "No."
* * * * * * * * * * * * *
Mayor Neal called for a 10 -minute recess.
* * * * * * * * * * * * *
Prior to opening discussion on Item H., Mayor Neal requested a clarification of Item 2. City
Manager Hennings replied that Corpus Christi Power and Light's proposal involves two steps:
approving a franchise that would allow CCPL to sell electricity in the city limits; and establishing
a tariff that would order Central Power and Light to allow CCPL to use CPL's transmission and local
distribution facilities at a specified charge to transmit electricity to their customers.
The Mayor then referred to Item H., Texas Department of Transportation State Infrastructure
Bank Program and toll road funding.
Minutes
Regular Council Meeting
January 20, 1998
Page 8
Mr. Carl Crull, Assistant City Manager for Public Works and Utilities, explained that the
State Infrastructure Bank (SIB) was created by federal law in 1995 which designated 10 states
(including Texas) as pilot states for the program. In 1997 the Texas Legislature passed enabling
legislation establishing the SIB. He said that under the program, the state can put up to 10% of the
federal monies it receives from the gas taxes.
Mr. Crull said that according to the SIB regulations, the program is designed to encourage
public and private investment in transportation facilities, and to develop financing techniques to
accomplish the following: expanded availability of funds for transportation projects and a reduction
in state costs; maximized private and local participation in transportation projects; and improved
efficiency of the state transportation system. He said the benefits of the program include accelerating
the timing of projects; having flexibility in financing; acquiring capital at lower than market rates;
assisting communities in meeting their needs; and fostering public and private partnerships. He noted
that the Texas Department of Transportation (TXDOT) is currently only able to fund about one-third
of the identified transportation needs statewide.
The Assistant City Manager went on to say that eligible projects would need to also be
eligible for federal aid, which means that they would need to be on the state transportation program
and designated as a collector or above (collector, arterial, or state highway). He said all aspects of
a project are eligible for funding. and all or a portion of the project cost can be borrowed from the
SIB, beginning with the city's 20% share of the project cost up to the total project cost. Mr. Crull
also described the application process and the agreement after the application is approved. He added
that the repayment does not start until after the project is completed.
Responding to Council Member Martin, Mr. Crull said the SIB is strictly a loan program;
he added that it could not be used for a local residential street program. Responding to another
question, City Attorney Bray said it might be possible to utilize certificates of obligation, which
would not require an election. Mr. Martin said that given the city's rate cap, this issue may be moot
because voter approval is needed to go outside the rate. Mr. Crull briefly reviewed the pay -back
criteria, saying that he would provide more information on it, and a brief discussion ensued.
Council Member Colnrencro asked if this loan program would eliminate any possibilities for
grants. Mr. Crull replied that the state's ability to fund projects is decreasing every year, and this
program is intended to encourage more local participation or a greater percentage of participation
in a project. He added that applications are made on a project -by -project basis, and the city would
have to follow TXDOT's regulations regarding the process. Council Member Gonzales asked about
the interest rates on the loans. Mr. Crull said the interest rate is negotiable, but it could be about 70
basis points below market.
Mr. Crull then gave a brie]presentation on toll roads. He explained that the same legislation
which created the State Infrastructure Bank transferred the Texas Turnpike Authority's responsibility
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Regular Council Meeting
January 20, 1998
Page 9
to TXDOT. He said that according to the new director of the toll road division, point-to-point routes
are likely candidates and public support is an important part of the process in obtaining designation
as a toll road. Mr. Crull said a tra flit model would need to be developed which would incorporate
several issues, including sensitivity to the size of the toll, alternate routes, the origin and destination,
and the reasonable growth of traffic. He said that a rough estimate of establishing a toll on the
Kennedy Causeway, based on the current traffic volume of 20,000 vehicles per day and a $35
million project, could be a 50 cent -per trip toll for the length of the debt.
Mr. Crull added that a preliminary study in establishing a toll road would cost about $30,000
to $40,000, and a more detailed financial package would need to be developed as well. Mr. Crull said
he estimates that based on the size of the Kennedy Causeway project, a number of funding sources
will be needed for it, such as state and federal funds, local taxes, tolls, and special benefit districts.
Council Member Garcia asked how the debt would affect the city's bond rating. Mr. Crull
said it would be calculated into the city's overall bond rating, and the capacity to pay it back is more
of a component of the bond rating than having the debt itself. He added that if a toll road was not
established, he thought a bond election would have to be held, and the debt service for those bonds
approved by the voters would be outside the tax rate cap, which Mr. Hennings further explained. He
emphasized that the causeway project is very large and it would have to be soundly financed.
Responding to Mr. Martin. Mr. Crull said he thought a toll package could be developed with
a "tiered" system based on residents and non-residents. He also discussed alternative routes Mr.
Martin commented on the importance of this project being moved up on the state's priority listing.
Council Member McNichols said that residents of Padre Island would be disadvantaged if
they had to pay both a property tax increase and a toll to finance the causeway project. However, he
said, one benefit of the toll road is that it incorporates more than the local tax base and is related to
tourism. He agreed that the city needs to determine what it would take to raise the project's priority
on the state funding list.
Mayor Neal asked what would be the next step. Mr. Hennings said staff would come back
with a report to answer the Council's questions, and then explain the process of the consultant's
study with recommendations on how that could be financed.
The Mayor then called for petitions from the audience and there were none.
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 3, baitstand lease agreement. He called for comments
from the audience, and there were none.
Minutes
Regular Council Meeting
January 20, 1998
Page 10
Responding to Council Nlember Martin, Mr. Hennings said that bids were not required on
leases of city property. He said there was a discussion about this issue last year, and staff feels that
the current operator has done a good job and there is a limited number of potentially successful
operators for that facility. He said there was the option of opening this up for proposals.
Council Member McNichols said he is not opposed to the lease agreement itself, but he does
not support the amount of investment into the new facility. Mr. Malcolm Matthews, Director of Park
and Recreation, said the city owns the existing bait stand and the restrooms, both of which need to
be rebuilt; the project is budgeted at $218,000 in the Marina operating budget. He added that the
marina has strived to be a full-service marina, and the Marina Fund is an enterprise fund which
supports itself.
City Secretary Chapa polled the Council for their votes as follows:
3. FIRST READING ORDINANCE
Authorizing the City Manager or his designee to execute a 15 -year lease agreement with two
5 -year renewal options with Patricia Jane Stubbs for the L -Head Bait Stand, for a bait stand
and fishing supply operation, in consideration of monthly rent of 6% of gross receipts or
$1,500, whichever is greater. for April through November annually and 6% of gross receipts
for December through March annually.
The foregoing ordinance passed on first reading by the following vote: Colmenero, Garcia,
Gonzales, B. Longoria, .1. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper
absent.
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 4, wastewater system enhancement program. He
called for comments from the audience, and there were none.
In reply to Council Member McNichols, Mr. R.H. Shackelford, Director of Engineering
Services, briefly described some of the areas of concern that will be addressed by the proposed
contract with Urban Engineering. including rehabilitation of the sewer collection system in the
Carolyn Heights and Sunnybrook/Mansheim areas, and cleaning of the sewer lines (15 -inch diameter
and larger) in the four wastewater basins of Allison, Broadway, Greenwood, and Oso.
Mr. Shackelford noted that $5.5 million is budgeted for the infiltration/inflow (I&I)
collection system enhancement program, and staff will bring another I&I contract to the Council next
week for their consideration. Ma) or Neal and Council Member Martin pointed out that the program
had already been authorized by the Council. Mr. Martin also discussed the importance of continuing
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Regular Council Meeting
January 20, 1998
Page 11
to improve and repair the city's wastewater collection system. Mr. Shackelford pointed out that there
are 445,000 lineal feet of 15 -inch and larger lines in the four service areas mentioned, and there are
over 1 million lineal feet of sewer lines in the Broadway service area alone. Responding to Council
Member Colmenero, Mr. Shackellbrd described the proposed project schedule.
City Secretary Chapa polled the Council for their votes as follows:
4. M98-007
Motion authorizing the City Manager or his designee to execute a Contract for Engineering
and Consulting Services with Urban Engineering, Inc. for a total fee not to exceed $743,783
for the Infiltration/Inflow Collection System Enhancement Program.
The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales,
B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye."
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 5, Regional Water Supply Task Force
recommendations. He called for comments from the audience, and there were none.
Council Member Gonzales questioned the second recommendation "to provide sufficient
funding to secure professional services." City Manager Hennings said it would involved evaluating
the Tampa Bay project and how it would apply to Corpus Christi's situation, as well as a
consultant's study about the possibility of using brackish groundwater as feed stock for a
desalination project. Dr. Gonzales said he did not think the city needed to hire a consultant to
evaluate the Tampa Bay project, adding that Mr. James Dodson, Regional Water Director, could
perform that task. Mr. Dodson explained that a member of the Regional Water Supply Task Force
felt it was important to have someone Ihmiliar with the Tampa Bay project to help interpret that
information.
Council Member Martin said he agreed with Dr. Gonzales' assessment that the city did not
need to hire a consultant; rather, they should let staff monitor the Tampa Bay situation over the next
year. Mr. Martin also pointed out that the next item on the day's agenda pertained to the city
pursuing the Garwood water. He said if the city is successful in acquiring that water, it will not need
another source of water.
Council Member McNichols, Co -Chairman of the Regional Water Supply Task Force,
pointed out that the task force is truly regional in its composition. He said that for many years there
has been a question of whether the area has a reliable source of groundwater, and it was up to the
Council whether they should spend money at this time to answer that question. Dr. McNichols added
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Regular Council Meeting
January 20, 1998
Page 12
that the information regarding the Tampa Bay project is extremely complex, and he noted that there
has been public criticism that the desalination issue has not been thoroughly considered or studied.
Dr. Gonzales said he thought it was important to answer the questions raised by Dr. McNichols, but
he said they should give Mr. Dodson the opportunity to study the information first.
Council Member Colmenero said the issue of possible contaminants in the desalination
process has not yet been addressed in the information they have received.
Mayor Neal said he thought the Council was basically in agreement with the
recommendation that the task force and city staff closely monitor the progress of the proposed
Tampa Bay desalination project (referred to as "A" in the proposed motion). With regard to the other
two recommendations ("B" and "c-), lie asked if Mr. Dodson could provide an outline of what the
task force thought they were asking the Council to approve.
Mr. Martin suggested that staff conte back with recommendations "B" and "C" at such time
as the information developed under "A" has called for those things.
Mayor Neal said it was his opinion that the Council should track recommendations "B" and
"C" to the permitting process of Garwood, so that if and when the interbasin transfer permit is
granted, more information will be needed (including on desalination) to offset any criticisms as they
move forward. The Mayor also requested a quarterly report on the Tampa Bay project. He then asked
if there would be a motion to amend Item 5 to only vote on "A" with the proper wording of deferral
for recommendations "B" and "C."
Dr. Gonzales made a motion to amend Item 5 as stated below, seconded by Mr. Garcia. The
motion to amend passed. City Secretary Chapa polled the Council for their votes as follows:
5. M98-048
Motion approving the following recommendation of the Regional Water Supply Task Force:
A) direct the Regional Water Supply Task Force and City staff to closely monitor the
progress of the proposed 1 ampa Bay desalination project and report to the Council quarterly;
and directing staff to brine implementation of the following recommendations of the Task
Force back to the City Council later for discussion as we move through the permitting
process on Garwood: B) provide sufficient funding to secure professional services in
evaluating the information obtained from the proposed Tampa Bay desalination project with
respect to identifying any significant differences in the water supply issues and the
application of desalination in the Tampa Bay area versus the Corpus Christi area; and C)
initiate regional studies of the hydrogeology of the Gulf Coast Aquifer in the Corpus Christi
area, especially with respect to the availability of brackish ground water as a feedstock for
less expensive desalination processes.
Minutes
Regular Council Meeting
January 20, 1998
Page 13
The foregoing motion passed, as amended, by the following vote: Colmenero, Garcia,
Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper
absent.
* * * * * * * * * * * *
Mayor Neal opened discussion on Item 6, legal services for Garwood application. He called
for comments from the audience. and there were none.
Council Member Martin made a motion to amend Item 6.a. that the contract with Brown &
Potts provide that any subcontracts that exceed $25,000 must come back to the City Council for
approval. The motion to amend was seconded by Council Member Garcia and it passed.
City Secretary Chapa pol lecl the Council for their votes as follows:
6.a. M98-009
Motion authorizing the City Manager to employ the law firm of Brown & Potts to represent
the City of Corpus Christi in all matters related to advancing and defending the application
filed by the Garwood Irrigation Company pursuant to Section 11 of the "Exercise of Option
and Amendment to Agreement between the City of Corpus Christi and Garwood Irrigation
Company" dated February 22, 1994, including proceedings in the Texas Natural Resource
Conservation Commission and all matters related to or affecting such proceedings, until a
final determination by the Texas Natural Resources Conservation Commission and all appear
therefrom, at an hourly attorney's fee of $140, plus reasonable expenses and costs of
necessary expert witnesses. subject to appropriation, provided that all expenditures beyond
$25,000 be brought back to the City Council for approval.
The foregoing motion passed, as amended, by the following vote: Colmenero, Garcia,
Gonzales, B. Longoria, .1. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper
absent.
6.b. ORDINANCE NO. 023195
Ordinance appropriating 5325,000 in Unreserved Fund Balances from the No. 141 Water
Fund amending Ordinance No. 022993 which adopted the FY 97-98 Budget by adding
$325,000 to the No. 141 \Vater Fund for professional services.
An emergency was declared and the foregoing ordinance passed by the following vote:
Colmenero, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting
"Aye"; Cooper absent.
Minutes
Regular Council Meeting
January 20, 1998
Page 14
* * * * * * * * * * * * *
Mayor Neal called for consideration of consent motions, resolutions, ordinances and
ordinances from previous meetings on Items 7-12. The Council members did not request 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:
7. M98-010
Motion approving supply agreements with the following companies for the following
amounts in accordance with Coastal Bend Council of Governments Bid Invitation No.
CBCOG-98-3 for food items which include canned and frozen fruit and vegetables, meats
and condiments for an estimated six month expenditure of $71,466.21 based on low bid, low
bid meeting specifications, best bid and only bid. The term of the contracts shall be for six
months with an option to extend for up to three additional months, subject to the approval
of the Coastal Bend Council of Governments, the suppliers, and the City Manager or his
designee. Funds are budgeted in FY 97-98 by Senior Community Services.
Sysco Food Service
San Antonio, TX
70 Items
$12,091.79
Performance Food Gaup
Victoria, TX
26 Items
$11,712.17
U.S. Foods
Cornus Christi, TX
57 Items
$25,796.72
Labatt Food Service
Corpus Christi, TX
15 Items
$3,771.16
Grand Total - $71,466.21
Alliant Food Service
Austin TX
79 Items
$18,094.37
The foregoing motion passed by the following vote: Colmenero, Gonzales, B, Longoria, J.
Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper and Garcia absent.
8. M98-011
Motion approving a supply agreement with City Dairy Services, Corpus Christi, Texas, in
accordance with Coastal Bend Council of Governments Bid Invitation No. CBCOG-98-5,
for milk and dairy products consisting of homogenized milk, buttermilk, low fat milk, low
fat chocolate milk and skim milk. based on low bid for an estimated six month expenditure
of $20,382.04. The term or the agreement shall be for six months with an option to extend
for up to three additional months, subject to the approval of the supplier and the City
Manager or his designee. Funds have been budgeted in FY 97-98 by Senior Community
Services.
Minutes
Regular Council Meeting
January 20, 1998
Page 15
The foregoing motion passed by the following vote: Colmenero, Gonzales, B. Longoria, J.
Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper and Garcia absent.
9. M98-012
Motion authorizing the C i ty Manager or his designee to execute an effluent use agreement
with the APEX Golf Properties Corporation d.b.a. Pharaoh's Country Club, which will
permit the taking of effluent from the Oso Water Reclamation Plant for the irrigation of the
Pharaoh Golf Course.
The foregoing motion passed by the following vote: Colmenero, Gonzales, B. Longoria, J.
Longoria, Martin, McNichols. and Neal voting "Aye"; Cooper and Garcia absent.
10. ORDINANCE NO. 023196
Ordinance amending Ordinance No. 022558, passed and approved on April 30, 1996, by
amending Section 3 to adopt the final assessment roll and assessments to be levied against
the owners of property abutting on the following streets included in the Wynn Seale School
Area Street Improvements -Phase III project:
16' Street - Cole to South Staples
17'h Street - Cole to South Staples
18'h Street - Cole to Baldwin Boulevard
Naples Street - 18°i Street to South Staples
An emergency was declared and the foregoing ordinance passed by the following vote:
Colmenero, Gonzales, I3. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye";
Cooper and Garcia absent.
11. ORDINANCE NO. 023197
Ordinance amending Ordinance 022368, passed and approved October 17, 1995, by
amending Section 3 to adopt the final assessment roll and assessments to be levied against
the owners of property abutting on the following streets included in the SPID/Ayers Area
Street Improvements project:
Alaniz Street - Sokol Drive to Sacky Street
Wharton Street - Sokol Drive to Dead End
Green Grove Street - Winters Street to Horne Road
Alexander Street - 197 feet East of Ayers to Green Grove
Hudson Street - Prescott to Vestal Street
Vestal Street - Hudson Street to Sherman Street
Vitemb Street - Hudson Street to Sherman Street
An emergency was declared and the foregoing ordinance passed by the following vote:
Minutes
Regular Council Meeting
January 20, 1998
Page 16
Colmenero, Gonzales.13. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye";
Cooper and Garcia absent.
12. ORDINANCE NO. 023198
Ordinance authorizing the City Manager or his designee to execute a one-year Use Privilege
Agreement with Ackerley Airport Advertising, d.b.a. AK Media Airport to operate an
advertising services business at various locations in the Corpus Christi International Airport
in consideration of 58% of gross profits or $66,000 annually, whichever is greater.
An emergency was declared and the foregoing ordinance passed by the following vote:
Colmenero, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye";
Cooper and Garcia absent.
* * is * * * * * * *
* *
Mayor Neal called for the City Manager's report. Mr. Hennings said the Housing and
Community Development Department will begin holding meetings to receive input on the
Consolidated Annual Action Plan. 1 le noted that the Council meeting will be held at Moody High
School next week, and some of the key issues on the agenda will be the Shoreline Boulevard
landscape plan, consulting contract on the hurricane response program, computer systems, and two
zoning cases.
Mr. Hennings also referred to a report in last Friday's transmittal packet regarding the
transfer of Garwood water from the Colorado River to the Lake Texana pipeline. He explained that
there had been some discussions about moving that water to Sandy Creek and then letting it flow to
Lake Texana. However, the decision was made by the Lavaca-Navidad River Authority board to not
utilize that option; instead, the city will plan to build a pipeline to take the Garwood water out of the
Colorado River. Mr. Hennings said staff did not keep the City Council informed about those
discussions, which occurred about I -11/2 years ago, and he apologized for that.
Mayor Neal asked if the contracts for the seawall repairs and the Wesley Seale Dam would
be on next week's agenda, and Mr. 1 -Jennings said they would be put off for a week. The Mayor also
requested a detailed report about the drainage system, and he reminded the Council members that
the consultant for the city manager search will meet with them individually on January 22-23. He
also referred to the meeting next week at Moody High School.
Council Member Martin said he appreciated Mr. Hennings' comments on the Garwood water
situation. He also questioned a stall response to a question about drainage problems in the Wood
River area. Mr. Crull said the Stormwater Superintendent would be meeting with the Wood River
board that night.
Minutes
Regular Council Meeting
January 20, 1998
Page 17
Council Member Gonzales said he had received a letter regarding an incident at one of the
city's golf courses. Mr. Hennings replied that he would deal with the situation, and respond to the
citizen with a copy to the Council. Dr. Gonzales said he had again seen the public service
announcement featuring Police Chief Alvarez and a local attorney, to which he objected. Mr.
Hennings said he thought those PSAs had been stopped, but he said he would see to it that they are
stopped.
Council Member McNichols commented that by taking the Garwood water via a pipeline
eliminates the problem of channel losses and evaporation. He also requested the information that had
been gathered previously regarding the city's smoking ordinance to consider whether any changes
need to be made in the smoking ordinance now.
Council Member Colmencro requested an update on the firefighters' contract negotiations.
Mr. Hennings said there would he a closed session on that issue next week.
Mayor Neal asked staff to provide the Council with the schedule regarding the electric power
issue, and he noted that the February 10th hearing would probably be lengthy, which will impact
other issues on the agenda for that day. The Mayor also announced that Southwestern Bell Wireless
began the program of providing cellular phones to school crossing guards.
There being no further business to come before the Council, Mayor Neal declared the
Council meeting adjourned at 7:00 p.m. on January 20, 1998.