Loading...
HomeMy WebLinkAboutMinutes City Council - 03/31/1998I 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 March 31, 1998, which were approved by the City Council on April 14, 1998. WITNESSETH MY HAND AND SEAL, this 14th day of April, 1998. Armando Chapa City Secretary SEAL MINI JTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting March 31, 1998 2:15 p.m. PRESENT Mayor Loyd Neal Mayor Pro Tem Dr. David McNichols Council Members: Javier D. Colmenero Melody Cooper Alex L. Garcia Jr. Dr. Arnold Gonzales Betty Jean Longoria John Longoria Edward A. 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 Minister Charles Boren, Norton Church of Christ, following which the Pledge of Allegiance to the flag of the United States was led by fifth grade students from Lamar Elementary: Rebeca Reyna, Robert Quesada, Maisie Gomez, Priscilla Valdez, Jeanette Claudio, Marie Andrade, and Amanda Carrillo. 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 March 24, 1998, and there being no corrections, he proclaimed them approved as presented. * * * * * * * * * * * * * Mayor Neal referred to the presentation on the day's agenda, an update by Koch Refining on pipeline development plans. Mr. Tom Heilman, public information officer for Koch Refining, said the interconnect pipeline project involves the construction of product pipelines and fiber optic cables to connect Koch's east and west refining facilities. The pipelines will reduce the need to transport petroleum- based products by barge along the ship channel, thus reducing emissions and other potential environmental impacts. Mr. Heilman also referred to efforts the company has taken in keeping the public informed about this project, and he noted that construction is expected to be completed in May 1998. He also described a change of service on one of the interconnect pipelines from a 12" refined products line to a 10" crude oil line, as well as the construction of lateral tie-ins from Koch's Minutes Regular Council Meeting March 31, 1998 Page 2 interconnect pipeline across Up River Road into Valero Refining Company. ************ Mayor Neal called for petitions from the audience. Mr. Glynn Pugh, 725 Harrison, said that a city -owned electric distribution system would result in $35 million of new revenues annually, a 25% reduction in the electric rates for Corpus Christi residents, and avoidance of a large "excess of cost over market" amount attributable to Central Power and Light's investment in the South Texas Nuclear Plant. Mr. Guy Watts, 4237 Ocean Drive, said many strides have been made in programs designed to prevent juvenile delinquency, including a joint project between CCISD and the YMCA, and the recent addition of covered pavilions at the elementary schools with the anticipation of local children using them after school. He also encouraged the Council to promote legislation that would expand the city's and the school district's immunity with regard to establishing prevention programs. Mr. J.E. O'Brien, 4130 Pompano, referred to advertisements paid for by Central Power and Light regarding a comparison of their rates with other Texas cities. He then discussed a survey conducted by the Public Utility Commission in May 1997, which reflected higher electric rates for Texas cities than those presented in the CPL ad. He added that the latest electric rate reduction is on appeal in district court because CPL would like to increase their rates. Mr. Leon Perez, 904 Buford, criticized the current design of the JFK Causeway, saying it was obvious when it was built that it did not allow for the free flow of water underneath and it would be susceptible to flooding. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 2, factory outlet center. City Manager Hennings said the city's contract with the developer of the proposed factory outlet center in northwest Corpus Christi has a deadline of March 31, 1998, at which time the developer was to have closed on the purchase of the land for the project. The agreement also has a deadline of September 30, 1998, in which to commence construction of at least 100,000 square feet of building space as a first phase of the outlet center. He said the developer is asking that the March 3151 date be amended to September 30th to coincide with the deadline for the beginning of construction. The amendment also offers that the minimum amount for the first phase be increased from 100,000 square feet to 125,000 square feet. Mr. Hennings said if the Council agrees to it, the amendment will take effect immediately and the deadline will be September 30"' for both the purchase of the land and commencement of construction. He said if the Council does not take action Minutes Regular Council Meeting March 31, 1998 Page 3 today, the agreement will expire and any future proposals would be considered new business. Mayor Neal called for comments from the audience. Mr. Jim Baxter, representing Padre Staples Mall, said that despite the many extensions this project has received, the outlet center still is not constructed. He said it has hurt the leasing efforts of the developers in this community, and he referred to the recent foreclosure of Sunrise Mall. Mr. Baxter also commented on the large amount of tax revenue that Padre Staples Mall contributes to the city. Mr. J.E. O'Brien said it was his understanding that if this project proceeds, the city will be paying about $750,000 for the highway ramp reversals at the location of the outlet center. He questioned whether that money could be used on another project with a higher priority. Ms. Carol Wilkinson, President of the Northwest Business Association, submitted petitions with the signatures of over 500 people expressing support of the proposed factory outlet center. She said the center's supporters were urging the Council to continue to support it by granting the six- month extension. Mr. Stan Samberg, developer of the outlet center, said he still has faith in this project and he continues to bring prospective tenants to the city along with investing his own money into it, while requesting no money from the city. Mr. Samberg said he has had a firm commitment from a major tenant (the "anchor" tenant) for some time but the tenant has not yet signed a contract with Mr. Samberg. In response to Council Member Cooper, Mr. Samberg said he is not ready to close on the purchase of the land until he has the necessary amount of signed leases in hand. He added that he is still anticipating opening the center in March 1999. Mr. Samberg said that he continues to talk with other prospective tenants and if he has the necessary amount of square footage leased to them, he would not need the anchor tenant to begin construction. Council Member Betty Jean Longoria said she is still very much committed to this project and she said she feels confident that it will come to fruition. Council Member McNichols questioned why the major tenant referred to by Mr. Samberg is reluctant to sign a lease for the center. Mr. Samberg said the project is not dependent on the anchor tenant's participation, but it does expedite the process if that company participates. He noted that he will be spending over $21,000 for specific reports on the project, which he would not spend if he did not think the project is viable. He added that there are outlet centers throughout the country that have taken years to start but are now successful (as well as some that are not). Minutes Regular Council Meeting March 31, 1998 Page 4 Replying to Council Member Garcia, Mr. Hennings said he thought it was reasonable to grant the extension of the contract to Mr. Samberg, and the cost to the city would be almost nothing. If the center is constructed, it will provide more business and increase the tax base, as well as allow for the completion of the municipal golf course and R.V. park there. Mr. Garcia asked if the Council granted this extension but the center is not constructed, whether Mr. Samberg would withdraw the contract, and Mr. Samberg said he would. Mr. Garcia asked if the outlet center had any effect on businesses signing leases at the city's retail malls. Mr. Samberg replied that the manufacturers who sell merchandise wholesale to the stores in the mall, such as Foley's and Dillard's, would not open a store in Sunrise Mall because it is located across the street. The proposed outlet center, however, is located 22.8 miles from the mall and the outlet center is designed to attract tourists who come to Corpus Christi each year. Mr. Garcia said he supported the contract extension, adding that he felt it should be the last extension. Mr. Samberg said he has paid the city a total of $117,000, of which $67,000 went toward the ramp reversals. Responding to Council Member Colmenero, Mr. Samberg further described the options he has with regard to prospective tenants, and he noted that the leases are for a period of five years with options to renew. He also described existing centers in other cities. City Secretary Chapa polled the Council for their votes as follows: 2. M98-096 Motion authorizing the City Manager or his designee to execute an amendment to the agreement with Samberg/Corpus Christi Inc. for acquisition of land and development of a Factory Outlet Center by extending the deadline for closing on the purchase of land to September 30, 1998 and increasing the first phase minimum from 100,000 square feet to 125,000 square feet. The foregoing motion passed by the following vote: Colmenero, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper voting "No." * * * * * * * * * * * * * Mayor Neal opened discussion on Items 3, 4, 5, and 6 pertaining to the update on FY 97-98 second quarter financial and budget. Utilizing charts and graphs, Mr. Hennings gave a brief presentation on the status of the budget after the first six months of the fiscal year. Following a discussion, Mayor Neal said the charts referred to by Mr. Hennings constituted a cash flow review rather than a budget review. Mr. Minutes Regular Council Meeting March 31, 1998 Page 5 Jorge Garza, Assistant City Manager for Administrative Services, said it is a comparison of expenditures for the same time period in past years to the current year. Mr. Hennings said the narrative included in the Council members' agenda material looks both at the budget and at prior years to determine if there are deviations about which staff needs to be aware. He said that in the future staff ought to separate the report into two parts: one strictly dealing with current year figures, and a supplemental part giving a historical perspective. Another discussion ensued regarding the manner in which the revenues are accrued. Upon verification by Mr. Garza, Mayor Neal said the new financial management computer system will allow for more timely budget and financial updates. In reply to other Council member's comments, Mr. Hennings stated that when he presents the Council with the FY 1998-99 budget, he will present options to both add revenues and cut expenditures. Mr. Hennings said there are two proposed amendments he would like to make to Item 6 (approval of the budget calendar): inclusion of a public hearing for June 16th on the budget adopted by the Crime Control and Prevention District; and changing the wording on the budget calendar to the following: "Assuming the effective tax rate exceeds the notice and hearing rate." Mayor Neal called for comments from the audience on Item 4. Mr. J.E. O'Brien said he supported Item 4, although he said he hoped it was not a public relations ploy because according to the proposed budget calendar, August 11 m is the designated date to "vote to propose a tax rate increase (by motion), and setting a date for public hearing." Mr. Hennings replied that if the property tax rate this year is 62 cents, and next year the Council proposes to adopt the same property tax rate of 62 cents, under state law the city has to publish an advertisement in the newspaper that states the city plans to raise the tax rate; in addition, a public hearing will have to be held on raising the tax rate, even though it would be the same rate. He said it all goes back to the calculation of the effective tax rate. Council Member Martin pointed out that the taxes levied and the total amount of taxes collected will be greater, otherwise they would not have to publish it. Mr. R.F. Hasker, 1813 Wallace, said he also supported Item 4, adding that the city has ever- increasing utility rates, fines and fees. Mr. Martin asked Mr. Hennings what the impetus was for Item 4, and the City Manager replied that he thought Mr. Martin had made the request. Mr. Martin replied that his request was for Mr. Hennings to address the issue of funding the new computer systems without a tax increase, including looking into how the bonds are structured. In that case, Mr. Hennings suggested that Item 4 be amended to insert the words "resulting from the procurement of replacement computer systems" after the words "fiscal obligations." Minutes Regular Council Meeting March 31, 1998 Page 6 Mr. Martin made a motion to amend Item 4 as stated by Mr. Hennings, and the motion was seconded. Responding to Council Member Garcia, Mr. Martin said none of the Council members want a tax increase, and it is Mr. Hennings' responsibility to prepare a budget the best way he can, while it is the Council's responsibility to determine if there will or will not be a tax increase. He said that decision is made when the Council approves the budget. He added that the Council has approved some overriding budget policies that may be directly contradicted by a resolution regarding no tax rate increase for the whole budget. Council Member McNichols said he thought Item 4 was a mandate to cut city services in other areas. Mr. Martin said it was a mandate to structure the debt service because there will be a large cost savings in future years when the existing computer systems are shut down. He said it would involve developing a plan similar to the Solid Waste Services plan to determine how the computer costs can be absorbed. Dr. McNichols and Mr. Garcia continued to express concern about how Item 4 would affect other city services. Mr. Martin then withdrew his motion to amend Item 4. Mr. Hennings pointed out that this is not part of the normal budget process and it is not something the Council has to do --it was placed on the agenda at the request of Mr. Martin during a previous Council meeting. City Secretary Chapa polled the Council for their votes on Item 4 as presented: 4. FAILEQ The foregoing motion failed to pass by the following vote: Colmenero, Cooper, and Martin voting "Aye"; Garcia, Gonzales, B. Longoria, J. Longoria, McNichols, and Neal voting "No." Dr. McNichols expressed concern there would be a misperception regarding Item 4. He said that by voting Item 4 down, the Council was saying that this is not part of the normal budget process and they did not want to constrain the City Manager as he prepares the budget. He said it would not be correct to assume that those who voted "No" on Item 4 are saying they think it is appropriate to have a tax increase at this time. Mayor Neal called for comments from the audience on Item 5, and there were none. Mr. Chapa polled the Council for their votes as follows: Minutes Regular Council Meeting March 31, 1998 Page 7 5. M98-097 Motion expressing the intent of the City Council to use excess funds, if any, from the sale of $9,825,000 Combination Tax and Revenue Certificates of Obligation, Series 1998 (computer system acquisition) for debt service. The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." Mayor Neal referred to Item 6, budget calendar. In reply to Council Member Garcia, Mr. Hennings said the public hearing for the Community Development Block Grant program will be held April 28th. Mayor Neal said he wanted to schedule a budget workshop on one of the first Council meetings of the month, and if it is not needed they can cancel the workshop. Mr. Longoria and Dr. McNichols commented that the Council could schedule a workshop if they determine one is needed after the budget process begins, and there was consensus of the Council to do so. Dr. Gonzales made a motion to amend Item 6 as previously stated by Mr. Hennings; seconded by Mrs. Longoria, and passed unanimously. Mayor Neal called for comments from the audience on Item 6, and there were none. Mr. Chapa polled the Council for their votes on Item 6: 6. M98-098 Motion approving the FY 98-99 Capital and Operating Budget Adoption Calendar. The foregoing motion passed, as amended, by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 7, local 1% sales tax on residential electricity, residential gas, and commercial and residential telephone service. Mr. Hennings referred to a chart on page 54 of the agenda material which summarizes the 1% city sales tax on Southwestern Bell, Central Power & Light, and City of Corpus Christi gas sales; the total amount is $1,768,565. He said the last time this issue was discussed, he suggested the Council consider an alternative of adjusting utility rates for low-income customers. He said staff has investigated the feasibility of that alternative utilizing the current computer system, and they concluded that it probably would not be possible at this time. However, he said staff could pursue that option later in the year. The Mayor called for public comment. Minutes Regular Council Meeting March 31, 1998 Page 8 Mr. J.E. O'Brien said he thought the Council should give some consideration about acting on this item in the very near future. He noted that a year ago customers were told their telephone bills would be reduced by 50 cents beginning January 1, 1998, which has not yet occurred. Responding to Council Member Gonzales, Mr. Hennings said the new computer system is being installed and should be operational around June 1st. However, he said, in order to work out any possible glitches in the system, they should wait a few months before considering modifying it to change the rates for low-income customers Dr Gonzales said he did not think the city should be taxing essentials, and he said the city should try to identify ways to assist low-income and fixed- income customers. Council Member McNichols said the Council needs to study the history of the city's sales tax revenue over the years, including its effect on the budget, before making any changes to the collection of the sales tax on utilities. Council Member John Longoria said the City of Beeville considered this issue as well, and they established an economy rate and a standard rate for residential utility service, which he explained. He noted that they still maintained the sales tax on residential utilities. Council Member Martin asked Mr. Hennings what he had been asked to do, and Mr. Hennings said the request was that he pursue the idea of adjusting city utility rates for low-income or possibly low -usage customers to partially offset the sales tax they pay on utilities. He said he was asked to present that to the Council as part of the budget discussion, along with a forecast of when that might be implemented using the new billing system and what affect it might have on next year's budget. Mr. Martin said the request was not to do anything about the residential 1% sales tax, and Mr. Hennings said that was correct. Mr. Martin said the question was whether the city could change its utility rates --not electric rates --in a way that only affects low-income people so they would pay an amount less than what the sales tax might be otherwise. Mr. Martin then asked if the city could legally offer a differential utility rate. City Attorney Bray replied that some of the electric utilities offer a similar rate, such as CPL's economy rate. Mr. Martin pointed out that that rate is based upon usage, not the income of the customer. Following a brief discussion, Mr. Hennings said this proposal would have to be considered in the context of the overall utility fund budget and the rate increases. Dr. Gonzales suggested that staff investigate similar programs in effect in other cities. Dr. Gonzales made a motion to direct staff to prepare a report on ways to help low-income people with regard to the cost of city utilities; seconded by Mr. Martin. Mayor Neal called for further public comment on Item 7 and there was none. Council Member Colmenero asked if the Council was requesting information on the sales Minutes Regular Council Meeting March 31, 1998 Page 9 tax or on utility rates or both. Dr. Gonzales replied that they were asking the City Manager to bring back a report to the Council, at which time they can further discuss it and either take action or not. Mr. Chapa polled the Council and the motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, 13. Longoria, J. Longoria, Martin, and Neal voting "Aye"; McNichols voting "No." * * * * * * * * * * * * * Mayor Neal noted that Item 8, proposed public art project on Shoreline Boulevard, was withdrawn from the day's agenda. He then opened discussion on Item 9, odor control at Oso Treatment Plant, and he called for comments from the audience; there were none. City Secretary Chapa polled the Council for their votes as follows: 9. M98-099 Motion authorizing the City Manager or his designee to execute a contract in the amount of $642,000 with R.S. Black Civil Engineers and Contractors/Machinery and Materials Inc., a joint venture, for the Oso Water Reclamation Plant Odor Control Project. 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 10, improvements on Buddy Lawrence Drive. He called for comments from the audience, and there were none. Council Member Gonzales asked who had pulled Item 8 from the agenda. Mayor Neal explained that he had received a request from the Municipal Arts Commission that that issue be placed on a future Council agenda since there was insufficient notice for them to attend the meeting to discuss it. Mr, Hennings said they could place the item on the agenda for the next Council meeting (April 14, 1998). With regard to Item 10, Mr. Martin asked who were the parties to the interlocal agreement. Mr. Bray replied that it was a three-way agreement between the city, Nueces County and CITGO, and he suggested they delete the word "interlocal" in the agreement. Mr. Martin made a motion to amend Item 10 to delete the word "interlocal"; seconded by Dr. McNichols and passed. City Secretary Chapa polled the Council for their votes on Item 10 as follows: Minutes Regular Council Meeting March 31, 1998 Page 10 10. RESOLUTION NO. 023260 Resolution authorizing the City Manager or his designee to execute an agreement with Nueces County and CITGO for road construction to widen Buddy Lawrence Drive within the existing right-of-way of both the City of Corpus Christi and Nueces County. The foregoing resolution passed, as amended, by the following vote: Colmenero, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper absent. * * * * * * * * * * * * * Mayor Neal called for a short recess. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 11, presentation on options to repair/rehabilitate or rebuild the Hayden W. Head Terminal Building at the Corpus Christi International Airport. Mr. Hennings said staff would present the results of the engineering work on the comparison of the cost of repairing the terminal or rebuilding it. In addition, they are asking for the Council's approval to complete the financial study that will be needed for discussions with the FAA and the bond rating agencies to illustrate that the project can be paid from airport user fees. Ms. Bonnie Allin, Director of Aviation, introduced Mr. James Ealy, Manager of Facilities and a professional engineer at the Department of Aviation. Ms. Allin explained that the Hayden W. Head Terminal Building, which was built in the 1950s and dedicated in 1960, has been added onto several times since then, the last addition occurring in the 1980s. The 1990 master plan recommended that a terminal rehabilitation project be undertaken to extend the life of the facility 20 to 25 years, and then build a new mid -field terminal building for future long-term use. The rehabilitation project would consist of many elements, including: ADA compliance, fire safety upgrades, expansion and improvement of the baggage claim area, a new central cooling plant, and a general "facelift" of the facility. The work was proposed to be conducted on a "pay-as-you-go" basis using airport improvement grants, passenger facility charges, and airport fund revenues. Ms. Allin said the first phase of the rehabilitation was completed in 1996-97 and it consisted of preliminary improvements including basic infrastructure needs. During the field investigation for that phase, some cracks were discovered in the roof structure and, after extensive testing, it was determined that the primary beams spanning part of the ticket lobby were shortening. Several long- term repair options were considered and it was concluded that the existing beams and columns should be encapsulated with a high-strength concrete. Minutes Regular Council Meeting March 31, 1998 Page 11 Ms. Allin said that upon consideration of directives from the City Council and input from airport users (airlines, concessions, rental cars, etc.), it was concluded that a new conceptual plan would be developed for the airport. The intent was to retain the 1980s addition (the ticket lobby from Continental's ticket counter westward and the upper west concourse), while rebuilding the rest. The new design would accomplish many things: minimize customers' walking distance; allow for expansion over the same area because the same square footage would be put into a smaller "footprint"; enhance customer services and make it easier for customers to find their way in the new airport; and greatly improve the airlines' operations. Ms Allin fiirther described the airport's proposed design utilizing visual aids. She said the estimated cost to rebuild the terminal is $22 million with construction to take about 36 months. She also described the study of the financial elements of the rebuild and repair options. She said the rebuild option is recommended based upon greatly improved customer amenities and operating efficiencies that will be gained through the use of the new building, in addition to the avoidance of risk associated with the repair of an older building. Mr. Hennings said the plan is for these capital improvements to be paid from airport user fees rather than tax monies. Mayor Neal called for comments from the audience, and there were none. Responding to Mayor Neal, Ms. Allin said additional parking is needed at the airport and the roadway needs to be widened and enhanced. Council Member Martin said the airport master plan pertaining to building a new mid -field terminal is being amended through the recommendation that much of the existing terminal be rebuilt for long-term use. In response to Mr. Martin, Ms. Allin further described the functionality of the proposed two-story terminal, as well as the design of the outside of the facility. In response to Council Member Garcia, Ms Allin explained that the bids were canceled for the proposed exterior improvements project; consequently, that funding is still available. She added that the airport user fees are set by the FAA, and she explained that the new security system, which is needed for Year 2000 compliance, will be designed so that the equipment can be reused, assuming the terminal is rebuilt. She also briefly discussed funding for the project, including relocation and rerouting costs. Ms. Allin added that about $25 million has been spent in the last eight years rebuilding the airfield. Council Member McNichols emphasized the importance of a modern, appealing design for the airport. Council Member Colmenero asked about the control tower, and Ms. Allin said the FAA is preparing a design to relocate the control tower toward the south in the future; the existing tower will then no longer be necessary. City Secretary Chapa polled the Council for their votes as follows: Minutes Regular Council Meeting March 31, 1998 Page 12 11.b. M98-100 Motion authorizing the City Manager or his designee to approve expenditure of authorized funds on the previously approved contract with J.F. Brown Company in order to complete a financial feasibility study and plan of action for the rebuild option of the Hayden W. Head Terminal Building. 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 the public hearing on the following zoning case: 12. Case No. 997-7. Maria Gongora: A change of zoning from an "A-2" Apartment House District to an "I-2" Light Industrial District on Bayview Addition, Block 13, Lot 20, located on the southeast corner of Craig and South Alameda Streets. City Secretary Chapa noted that this case was tabled from the February 24, 1998, Council meeting. He said the Planning Commission and staff recommended denial of the "I-2" District, and in lieu thereof, approval of a Special Permit for an office for a moving/transfer use and limited parking of associated vehicles subject to a site plan and eight (8) conditions. No one appeared in opposition to the zoning change. Council Member Gonzales made a motion to close the public hearing, seconded by Council Member Garcia, and passed unanimously. Mr. Brandol Harvey, Director of Planning and Development, said he had met with the applicant that afternoon because the applicant was requesting the following changes: that instead of 12 months they be given 18 months to achieve a full landscape screening; and that the landscaping strip be 18 inches wide rather than two feet, and that the fence be located halfway between the sidewalk and the pavement on the inside of their property. Mr. Harvey said he thought those proposed changes were in accord with the Planning Commission's recommendations. Council Member Garcia made a motion to amend Item 12 as discussed by Mr. Harvey, seconded by Council Member Cooper, and passed unanimously. Mr. Chapa polled the Council for their votes as follows: ORDINANCE NO. 023261 Amending the Zoning Ordinance upon application by Maria Gongora, by granting a Special Permit for an office for a moving/transfer use and limited parking of associated vehicles, subject to a site plan and eight (8) conditions, on Bayview Addition, Block 13, Lot 20. Minutes Regular Council Meeting March 31, 1998 Page 13 An emergency was declared and the foregoing ordinance passed, as amended, by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." * * * * * * * * * * * * * Mayor Neal opened the public hearing on the following zoning case: 13. Case No. 298-5. David and Carol Grassel: A change of zoning from a "B-3" Business District to an "F -R" Farm -Rural District on Flour Bluff and Encinal Farm and Garden Tracts, Section 39, being 9.09 acres out of Lot 8, located on the southwest corner of Flour Bluff and Glenoak Drive. City Secretary Chapa said the Planning Commission and staff recommended approval of the "F -R" Farm -Rural District. No one appeared in opposition to the zoning change. Council Member McNichols made a motion to close the public hearing, seconded by Council Member Cooper, and passed unanimously. Council Member Martin commented that this zoning case was unusual in that it would lower the population density in that area. Mr. Chapa polled the Council for their votes as follows: QRDINANCE NO. 023262 Amending the Zoning Ordinance upon application by David and Carol Grassel, by changing the zoning map in reference to 9.09 acres out of Lot 8, Section 39, Flour Bluff and Encinal Farm and Garden Tracts from `B-3" Business District to "F -R" Farm -Rural District. An emergency was declared and the foregoing ordinance passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." * * * * * * * * * * * * * Mayor Neal opened the public hearing on the following zoning case: 14. Case No. 298-6. Darren W. and Vanessa M. Johnston: A change of zoning from an "F -R" Farm -Rural District to an "RE" Residential Estate District on Flour Bluff and Encinal Farm and Garden Tracts, Section 26, being 1.253 acres out of the south portion of Lots 26 and 27, located on the north side of Slough Road (County Road 26), approximately 3,900 feet east of Rodd Field Road. Minutes Regular Council Meeting March 31, 1998 Page 14 City Secretary Chapa said the Planning Commission and staff recommended approval of the "RE" Residential Estate District. No one appeared in opposition to the zoning change. Council Member Cooper made a motion to close the public hearing, seconded by Council Member Garcia, and passed unanimously. Mr. Chapa polled the Council for their votes as follows: 14. ORDINANCE NO. 023263 Amending the Zoning Ordinance upon application by Darren W. and Vanessa M. Johnston, by changing the zoning map in reference to 1.253 acres out of the south portions of Lots 26 and 27, Section 26, Flour Bluff and Encinal Farm and Garden Tracts from "F -R" Farm -Rural District to "RE" Residential Estate District. An emergency was declared and the foregoing ordinance passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." * * * * * * * * * * * * * Mayor Neal called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 15 through 25, and Council members and audience members requested that Items 19, 20, and 21 be withheld for discussion. City Secretary Chapa polled the Council for their votes and the following were passed: 15.a. ORDINANCE NO. 023264 Ordinance appropriating $39,400 of interest earnings in the No. 535 Public Health and Safety 1991 Bond Fund; appropriating $82,000 of interest earnings in the No. 536 Public Health And Safety 1992 Bond Fund; to award a contract for emergency replacement of the Health Department chillers; amending Ordinance No. 023174, which approved the FY 97-98 Capital Project Budget, to add a new project of $121,400 for the air conditioner chillers at the Health Department to the Capital Program. An emergency was declared and the foregoing ordinance passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 15.b. M98-101 Motion authorizing the City Manager or his designee to execute a contract in the amount of $82,000 with Weathertrol, Inc. for replacement of air conditioning chillers at the Health Department building. Minutes Regular Council Meeting March 31, 1998 Page 15 The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 16. M98-102 Motion approving a supply agreement for dumpster route service in accordance with Bid Invitation No. BI -0109-98 with Corpus Christi Disposal Service, Corpus Christi, Texas, based on the low bid of $45,709.20. The term of the contract will be twelve months with option to extend for up to two additional month periods, subject to the approval of the supplier and the City Manager or his designee. This service will be utilized by various City facilities. Funds have been budgeted in FY 97-98 by the appropriate departments. The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 17. M98-103 Motion approving the purchase of five welding units in accordance with Bid Invitation No. BI -0120-98 from Aeriform Corporation, Corpus Christi, based on low bid of $28,059.65. The welders are to be used by Gas and Wastewater Departments, and are budgeted in the FY 1997-98 Maintenance Services Fund Capital Outlay as replacements. The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 18. M98-104 Motion authorizing the City Manager or his designee to execute a construction contract with J.M. Davidson, Inc. of Corpus Christi, Texas in the amount of $113,573 for the O.N. Stevens Water Treatment Plant Chemical Feed System and Bucket Elevator Rehabilitation Project. The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 22.a. M98-106 Motion authorizing the City Manager or his designee to execute a one-year lease agreement with a one-year option to renew with the Robert Driscoll and Julia Driscoll and Robert Driscoll, Jr. Foundation to lease 5.307 acres of land known as the Clara Driscoll Field. The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, Minutes Regular Council Meeting March 31, 1998 Page 16 B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 22.b. FIRST READING ORDINANCE Authorizing the City Manager or his designee to execute a one-year lease agreement with Buccaneer Little League to sublease the Clara Driscoll Field from the City and in consideration of Buccaneer Little League maintaining the premises and improvements and operating its baseball program. The foregoing ordinance passed on first reading by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 23. FIRST READING ORDINANCE Authorizing the City Manager or his designee to execute a ten-year lease with Northwest Youth Football League for 16.71 acres of City/County Property in consideration of Northwest Youth Football League maintaining the premises and improvements and operating a youth football program. The foregoing ordinance passed on first reading by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 24. ORDINANCE NO. 023268 Authorizing the City Manager or his designee to execute a use privilege agreement with the law offices of Canales & Simonson for the right to install and maintain an aerial communications cable across the Crews Street right-of-way and within the Morgan Street right-of-way, to provide a communication link between the firm's offices located at 2501 Morgan Street and 2601 Morgan Street; and establishing a fee of $265. The foregoing ordinance passed on second reading by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 25. ORDINANCE NO. 023269 Amending Chapter 6- Animal Control, Sections 6-1, 6-10(C), 6-18(E), 6-21(J), 6-22(A), 6- 23(C), and 6-25(B) of the Code of Ordinances to revise the amounts of fines and charges, to conform to various provisions to State law, and make certain other changes and amendments. The foregoing ordinance passed on second reading by the following vote: Colmenero, Minutes Regular Council Meeting March 31, 1998 Page 17 Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 19, contract for economist services. Mr. J.E. O'Brien said he opposed Item 19, saying he thinks the Garwood contract should be put to the voters of this community. He said the contract will be $15,750,000 and will involve building a pipeline if the water transfer is approved, which will cost another $20 million to $40 million. He quoted from a press release from the Lower Colorado River Authority when they purchased the Garwood Irrigation Company, which stated that the acquisition would mean that the LCRA will have first call on almost all of the normal and drought -period flows of the river before any other user can take the water. Mr. O'Brien interpreted that to mean there is no guarantee that Corpus Christi will actually receive the water. Mr. Hennings pointed out that the statement read by Mr. O'Brien included the words "almost all" of the water, and the exception noted is the 35,000 acre-feet purchased by the City of Corpus Christi. City Secretary Chapa polled the Council for their votes as follows: 19. M98-105 Motion approving a contract between the law firm of Brown & Potts and The Perryman Group for economist services in support of the Garwood Irrigation Company application to the Texas Natural Resource Conservation Connnission to permit the transfer of water purchased by Corpus Christi to the Corpus Christi area. The foregoing motion passed 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 20, resale of seven properties. Responding to Council Member Garcia, Mr. Marvin Leary, Area Manager of Linebarger, Heard, Goggan, Blair, Graham, Pefia & Sampson, said the bid analysis for each property contains a date of sale which is the date that the property was struck from the tax rolls. Following that, a deed was executed a few days later transferring the property into Nueces County as trustee for themselves and the other jurisdictions for which they collect taxes, including the city. He further explained the calculations of the amounts that each taxing entity will receive, which will be the same percentage of the amount that is due to them and which is determined by the amount of each bid. Minutes Regular Council Meeting March 31, 1998 Page 18 City Secretary Chapa polled the Council for their votes as follows: 20. RESOLUTION NO. 023265 Resolution authorizing the resale of seven properties shown on the attached and incorporated Exhibit A for a minimum bid equal to bid amount listed in Exhibit A. The foregoing resolution passed 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 21, facilities for substance abuse treatment. Ms. Blakely Fernandez, representing the board of the Greater Corpus Christi Business Alliance, said they would like to reiterate their strong opposition to the proposed site of 1301 Chaparral. Mr. Hennings pointed out that staff was asking the Council to approve a resolution (contained in the agenda packet) specifically denying consent to the operation of a correctional or rehabilitation facility at the proposed location of 1301 Chaparral. Council Member Colmenero said he was also opposed to the proposed Chaparral location, although he said he does not object to the programs themselves. He pointed out that another proposed location, 1501 N. Tancahua, is very close to planned development in the port area. Council Member Garcia asked if the Council opposed the Chaparral location, whether they would be expressing their support of the other two locations. Mr. Hennings said the Council would just be indicating its objection to the specific location at 1301 Chaparral. He said if the state selects the Tancahua site, the owner will have to come to the city for a zoning change. The City Manager added that the other location off Saratoga is outside the city limits so zoning will not be an issue. Mr. Bray added that this is a special proceeding under state law with respect to correctional facilities, which he explained. Mr. Hennings went on to say that the Council could amend the resolution to include the Tancahua and Saratoga locations if they also choose to object to them. Council Member Betty Jean Longoria also raised concerns about the Tancahua location. Mr. Hennings suggested that Mr. Bray brief the Council on a legal issue regarding this item before they take a vote on it. Mayor Neal announced the closed session, pursuant to Texas Government Code, Section 551.071 regarding Item 21 on the day's agenda, and regarding collective bargaining with the Corpus Minutes Regular Council Meeting March 31, 1998 Page 19 Christi Police Officers Association. The Council went into closed session. The Council returned from closed session. City Secretary Chapa polled the Council for their votes as follows: 21.a. RESOLUTION NO. 023266 Resolution denying consent to the operation of a correctional or rehabilitation facility at the proposed location of 1301 Chaparral. The foregoing resolution passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, and Neal voting "Aye"; Martin and McNichols absent. Mr. Colmenero made a motion that the Council pass a resolution denying consent to the operation of a correctional or rehabilitation facility at the proposed location of 1501 N. Tancahua; seconded by Council Member Garcia. Mr. Chapa polled the Council and the motion failed to pass by the following vote: Colmenero, Cooper, and Garcia voting "Aye"; Gonzales, B. Longoria, J. Longoria, and Neal voting "No"; Martin and McNichols absent. Council Member John Longoria made a motion that the Council pass a resolution denying consent to the operation of a correctional or rehabilitation facility at the proposed location of Route 3, Box 460, Saratoga Boulevard; seconded by Council Member Gonzales. Mr. Chapa polled the Council for their votes as follows: 21.b. RESOLUTION NO. 023267 Resolution denying consent to the operation of a correctional or rehabilitation facility at the proposed location of Route 3, Box 460, Saratoga Boulevard. The foregoing resolution passed by the following vote: Cooper, Gonzales, B. Longoria, J. Longoria, and Neal voting "Aye"; Colmenero and Garcia voting "No"; Martin and McNichols absent. * * * * * * * * * * * * * Mayor Neal called for the City Manager's report. Mr. Hennings said that last Friday he sent the Council a report about the bid invitation for an annual supply agreement for muffler service. He Minutes Regular Council Meeting March 31, 1998 Page 20 said there will be no requirements in the bid invitation for insurance coverage because the vendors will not be required to pick up and deliver city vehicles as they have in the past. He said he did not think the city had any risk in that situation that was not already provided for in the city's self- insurance program. He asked if the Council had any objection to issuing the bid invitations as he proposed for the muffler service supply agreement; no objection was stated. Mayor Neal asked if this was just for muffler service, or if it was a model for supply agreements of this type. Mr. Hennings said it is difficult to generalize, but this is the approach he would plan to take on vehicle and equipment repair where the equipment needs to be taken from city property to the vendor (the equipment would be delivered by a city employee rather than the vendor). Mayor Neal briefly discussed other aspects of the proposal, including other insurance requirements. Mr. Hennings also announced the resignation of two city department heads, Mr. Malcolm Matthews, Director of Park and Recreation, and Mr. Jorge Cruz-Aedo, Director of Finance. Mr. Matthews has been recruited and selected as the new Director of Parks and Recreation for the City of San Antonio, and Mr. Cruz-Aedo has been recruited and selected to head up the City of Houston's Department of Finance and Administration. Mr. Hennings commended both men for their work with the City of Corpus Christi. He added that he will initiate the process of replacing both of them, although it will probably be three or four months before the process is completed. Mr. Hennings noted that Corpus Christi has been designated as a Clean City by the U.S. Department of Energy, and he said he is proud of the work of the city's employees on this project under the leadership of Ms. Debra Marroquin, Gas Superintendent; Ms. Miyoung Hammond Squire, Environmental Engineer; and Mr. Ron Barnard, Clean Cities Coordinator. He said they have recruited the Clean Cities Conference, which was being held in Corpus Christi. The City Manager also announced that April 1, 1998, will be the first day of the increase in the sales tax of one-eighth of one cent, which will fund the Crime Control and Prevention District; and the Great Texas Trash - Off will be held April 4, 1998. Items scheduled for the April 14th Council meeting include: annexation; quarterly report on the Tampa Bay desalination project; municipal electric utility service; and four zoning cases. Mayor Neal called for Council concerns and reports. Council Member Gonzales requested a financial report on how the city contributes to the museum, the Lexington Museum on the Bay, and the Texas State Aquarium. Council Member Colmenero asked for a report regarding the missing money from the Downtown Management District. Mr. Hennings said Mr. Gordon Landreth, the DMD Chairman, visited with the City Manager the other day to state that they had discovered funds were missing. He said he would provide the Council with a report. Mr. Colmenero also expressed interest on serving on a committee for the celebration of the Year 2000. Mayor Neal said he would include Mr. Minutes Regular Council Meeting March 31, 1998 Page 21 Colmenero and anyone else who is interested. Mr. Colmenero requested an analysis of possible repairs to McArdle from Ayers to Staples. Council Member Betty Jean Longoria said she attended a meeting in Austin of the TML Legislative Policy Committee on the Utilities and Environment. She said they discussed several important issues, including telecommunications franchises, and she volunteered to serve on a subcommittee regarding utilities deregulation. Council Member Garcia said he had received a letter from Mr. Bill Kelly regarding exposure of the seawall during the repair process. Mr. Carl Crull, Assistant City Manager for Public Works and Utilities, said the letter was addressed to him and he has already spoken to Mr. Kelly about that issue. He said the two sidewalk panels of the seawall should be back in place prior to the onset of hurricane season. Mr. Garcia said the Council continues to receive letters about drainage in the Wood River subdivision. Both Mr. Crull and Mr. Hennings explained some of the history about the drainage in that area. Council Member Cooper thanked the members of the Sister City Committee for their hospitality in hosting visitors from Hagen, Germany. Mrs. Longoria commented on the progress for the redevelopment of the old Frost Brothers building. There being no further business to come before the Council, Mayor Neal declared the Council meeting adjourned at 7:00 p.m. on March 31, 1998. *************