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HomeMy WebLinkAboutMinutes City Council - 03/09/1999I 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 9, 1999, which were approved by the City Council on March 16, 1999. WITNESSETH MY HAND AND SEAL, this 16th day of March, 1999. Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting March 9, 1999 2:10 p.m. PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Melody Cooper Council Members: Javier D. Colmenero Alex L. Garcia Jr. Dr. Arnold Gonzales Betty Jean Longoria John Longoria Edward A. Martin Dr. David McNichols City Staff: City Manager David R. Garcia 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 Rev. Phil Dunlap, Second Baptist Church, following which the Pledge of Allegiance to the flag of the United States was led by Council Member John Longoria. 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 February 23, 1999. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * * * * Mayor Neal read a proclamation honoring Mrs. M. Guadalupe L. Rangel for her outstanding leadership and service over the past six years as a regent of the Texas A&M University System. Mrs. Rangel thanked the Mayor and Council on behalf of her family and the Texas A&M University System. She added that the nine universities and eight state agencies in the system are there to serve all of the counties in Texas. Mayor Neal then asked City Manager Garcia to make a presentation to the Council about the status of the projects that were approved during the 1986 bond election. Mr. Garcia referred to an updated listing of those proposed projects. He noted that staff indicated on the list which projects have been completed since 1986 and he explained the reasons why some of the projects have not been completed. Mr. Garcia referred to a project to construct an underground storm sewer system on Texas, Indiana and Ohio streets. Mr. Angel Escobar, Acting Director of Engineering Services, said that project is scheduled in the FY2001 capital improvement program. Minutes Regular Council Meeting March 9, 1999 Page 2 With regard to public safety projects, Mr. Garcia said that Fire Station No. 4 is currently under construction. He said the projects to purchase land for future public safety facilities and to construct a municipal service center were not undertaken because a determination was subsequently made that those projects were not needed. The bonds for the land acquisition were not sold, and a large portion of the $500,000 for the service center was used to pay for Fire Station No. 4. Council Member McNichols pointed out that when voters approve bond projects they are voting to raise their own property taxes in years to come. He noted that with regard to the 1986 bond program, most of the important projects have been completed, and those that have not been were not undertaken for good reasons. City Manager Garcia said that several financial assumptions were made as part of the 1986 bond election proposal, including that taxable appraised values were projected to grow an average of 10% a year for the following six years. He said the City Council at that time thought 10% was an ambitious amount and the final assumption was a 3% increase for the first six years of the bond issue. Mr. Garcia then referred to a chart of net taxable assessed property values from FY 1982-83 through an estimate for FY 1998-99. He noted that in FY 1986-87, property values were at $6.73 billion and then they plummeted for several years. It was not until 10 years later in FY 1996-97 that property values reached the same level they had been when the 1986 bond election occurred. He said no one anticipated that a major recession would befall the country after that bond election. Mr. Garcia said that another assumption that was made was that the over 65 exemption would be $18,000; however, after 1986 that exemption was raised to $50,000, which decreased the city's revenues by about $3 million a year—revenues which were needed to sustain the bond issues. He said it is a credit to the city employees and the City Councils that so many projects have been completed, given the very adverse economic circumstances that have existed over the years. Mr. Garcia also referred to the status of street projects from the 1986 bond program. Council Member Martin said the Council had this discussion two years ago and they overruled the staffs recommendation regarding not finishing some of the street projects; instead they directed that the projects (such as improvements in the Del Mar area) be completed. He said there needs to be better communication about the whole issue, beginning with the list referred to by Mr. Garcia which shows all of the projects in the 1986 bond election (including those that were not approved by the voters). Mr. Martin added that many more projects have been completed over the years that also are not listed or discussed. He suggested that a comprehensive report be prepared on the status of all of the projects; additional discussion followed. * * * * * * * * * * * * * Minutes Regular Council Meeting March 9, 1999 Page 3 Mayor Neal deviated from the regular agenda and opened discussion on Item 6, naming the new landfill in honor of Mr. Cefe F. Valenzuela. He called for comments from the audience. Council Member Martin made a motion to approve Item 6, seconded by Council Member Betty Jean Longoria. Rev. E.F. Bennett said that Mr. Valenzuela started at the bottom (working as a clerk in the city's Street Department beginning in 1952) and worked his way to the top (serving as Sanitation Superintendent from 1972 until his retirement in 1989). Rev. Bennett said that although Mr. Valenzuela is retired, he has continued to remain active in the community, including being involved with the Community Blood Bank, American Legion Post 364, and the Rehabilitation Hospital. Mayor Neal called for a voice vote on the motion to approve Item 6, and the item passed unanimously. The Mayor then recognized Mr. Valenzuela, who thanked the Council for bestowing that honor on him and he expressed his appreciation to employees at the Rehabilitation Hospital where he volunteers for their surprising presence at the Council meeting. 6. RESOLUTION NO. 023571 Resolution recognizing the dedicated, laudable and meritorious service of Cefe F. Valenzuela to the citizens of Corpus Christi and directing that Corpus Christi's new municipal landfill be named in his honor. The foregoing resolution passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." * * * * * * * * * * * * * The next presentation was regarding the banking industry's Y2K preparedness. Mr. Mike Carrell, President of Frost Bank, introduced Mr. Louis Barton, Program Manager and Director of Year 2000 for Frost Bank. Mr. Carrell said Frost Bank has been preparing for the year 2000 issue since 1996 and, as a result of Mr. Barton's efforts, Frost Bank is part of the Bank Administration Institute Y2K Forum. In addition, Frost Bank has been invited by the OCC and the FDIC to help make Y2K policy and to train bank examiners on how to judge banks' readiness for the year 2000. Mr. Carrell added that every few months Mr. Barton attends round table discussions held by the Comptroller of the Currency concerning Y2K banking issues. Mr. Barton referred to a computerized presentation covering a variety of topics regarding Y2K. He noted that the last few years banks have been dealing with system and hardware issues and during 1999 they will be focusing on "human" issues, such as contingency planning, event planning, and communication with customers to ensure that their confidence in the banking system is upheld. Mr. Barton also discussed the readiness of the bank's suppliers and service providers, as well as a Minutes Regular Council Meeting March 9, 1999 Page 4 city-wide coalition that has been formed of representatives from many entities to keep abreast of Y2K issues. Responding to Mayor Neal, Mr. Barton said that all banks will be Y2K compliant by June 30, 1999. In reply to Council Member Garcia, Mr. Barton said Frost Bank knows where its Y2K risk is with regard to credit customers in its loan portfolio, although they are backed by collateral. * * * * * * * * * * * * * The last presentation was made by representatives of Freese & Nichols Engineering regarding their recommended repair option for the Wesley Seale Dam spillway stabilization project. Mr. Escobar introduced Mr. Bob Herchert, CEO, and Dr. Ron Waters of Freese & Nichols. Dr. Waters reported that the engineers have completed the design for the stabilization project and they are on schedule to advertise for bids, with the opening of bids anticipated at the end of April. He said Freese & Nichols conducted an economic analysis of the two options that had previously been presented to the Council: the ballast option and the anchor option. The analysis showed that while the anchors might cost slightly less than the ballasts initially, over the estimated life cycle of 50 years, the anchors may end up costing the city 10% to 15% more than the ballasts. In addition, the anchors would involve much maintenance and would be susceptible to corrosion, unlike the concrete ballasts. Consequently, said Dr. Waters, Freese & Nichols is recommending that the city only bid the ballast option. Dr. Waters went on to say that their projections show they are well within the project budget of $26 million; however, if the bids come in higher than anticipated, Freese & Nichols might recommend that the city go back and bid the project with the anchor option, taking into consideration what the long-term maintenance and life cycle costs might be. He said they have designed it so the Council can bid the project either way. Mayor Neal thanked Dr. Waters and his firm for proceeding along an orderly path to reach this point. Responding to Mayor Neal, City Manager Garcia said staff concurs with Freese & Nichols' recommendation and they are seeking the Council's endorsement, adding that this presentation is a statement of their intent to proceed with the ballast -only option. City Attorney Bray added that if the Council wished to proceed with a different plan than the one presented, they would make a motion to bring it back next week to vote on it; otherwise, the City Manager will proceed with the recommendation. Responding to Council Member Gonzales, Dr. Waters explained in detail how the ballast design will stabilize the dam In reply to Council Member Betty Jean Longoria, the City Manager reiterated that the anchor option will cost more over the long term because of the need to maintain them. Dr. Waters also explained the anchor option in response to Council Member Colmenero. Dr. Gonzales asked why Freese & Nichols was not recommending that both options be bid. Dr. Waters stated that doing so would cause confusion and possibly disrupt the bid process. Minutes Regular Council Meeting March 9, 1999 Page 5 Council Member McNichols asked if the soil characteristics underneath the dam will affect the stabilization project. Dr. Waters replied that the low cohesion of the soil is one of the factors that made the dam unstable in the first place, but it will not change the effectiveness of the concrete ballasts in stabilizing the dam. On the other hand, if anchors were used instead of ballast to stabilize the dam, they could become corroded and result in anchor failure. Council Member Cooper said that on the basis of the evidence that the ballast option is more economical and suitable for the repair of the dam, she said she endorses Freese & Nichols' and staffs recommendation. In response to Mr. Colmenero, Dr. Waters discussed settlement of the dam, which has been taken into account in the design. In response to Council Member Garcia, Dr. Waters said they are anticipating that the stabilization project will be completed in three years, at which point the elevation of the lake can then be allowed to reach 94 feet. He added that the concrete for the ballast will have to meet certain specifications, and he briefly discussed the monitoring that will continue on the dam. Upon verification by Mr. Bray, Mayor Neal said that since there was no objection by the Council to the recommendation of the ballast -only option, no formal action is needed and staff will proceed to bid that option. Dr. Waters said Freese & Nichols has enjoyed working on this project during the last 14 months, and they look forward to the successful completion of the dam's stabilization when construction is completed. * * * * * * * * * * * * * Mayor Neal called for petitions from the audience. Mr. Neal Trolinger, 221 Riverdale, said he had made an open records request two years ago for the bid documents on the Lake Texana pipeline. He said at that time the city had asked the Attorney General to issue a ruling that would make that information confidential, but the Attorney General's Office did not do so. Mr. Trolinger said he spoke with Mr. Frank Brogan at the Port of Corpus Christi Authority, who said the Port has no qualms about turning that information over to the city so it may be viewed on city property. Mr. Trolinger said he intends to resubmit his open records request for the bid documents and other information on the pipeline. Mr. Jack Gordy, 7226 Owen Court, said it has taken seven months and 25 phone calls from him to have the city take down some illegal signs placed in the right-of-way. Mr. Gordy also said that there are several election signs located in the rights-of-way of state roads. Ms. Kay Noyes, 930 Coral, continued to stress the need for a safe crossing at Everhart and Shannon. Mr. Irving Dietz, 455 Miramar, said that in September 1997 he had requested that the city distribute to the public the status of all of the projects in the 1986 bond program, which he said was Minutes Regular Council Meeting March 9, 1999 Page 6 not done. Mayor Neal said staff did provide that information at that time. He added that he would like to meet with City Manager Garcia regarding the 1986 bond program. Mr. J.E. O'Brien, 4130 Pompano, referred to a portion of the minutes from the February 23, 1999 Council meeting in which Mayor Neal asked who owns the pipeline, and City Attorney Bray replied that the city owns it. Mr. O'Brien said there has been no document transferring ownership of the pipeline to the City of Corpus Christi, and he suggested that the Council read the contract the city has with the Nueces River Authority. Mr. O'Brien also noted that the L -Head baitstand construction has now been delayed until May 1999. He said the city will now have to spend taxpayer dollars repairing the existing baitstand until the new one can be built, which he said is a result of city staff procrastination. He also referred to Art. II, Section 18 of the City Charter regarding Council responsibility, adding that he believes filing a lawsuit against the Attorney General of Texas is a policy decision that should be made by the elected officials. He added that the landowners in Odem were not notified of the release of water from the pipeline due to repairs. Mayor Neal called for a brief recess. * * * * * * * * * * * * * Mayor Neal called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 2-8 (Item 6 having been voted upon). There were no items withheld for discussion by the Council or the audience. City Secretary Chapa polled the Council for their votes and the following were passed: 2. M99-057 Motion approving the purchase of interactive computer-based training software from ITC Learning Corporation, Herndon, VA, in accordance with Request for Proposal No. BI -0032- 99 for a total of $22,200. The software will be used by the Gas Department to train Gas Department employees. Funds have been budgeted by the Gas Department in FY 98-99. The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, McNichols, and Neal voting "Aye"; Martin absent. 3. M99-058 Motion approving the purchase of a van for a total cost of $23,717 through a cooperative purchasing agreement with the Houston -Galveston Area Council (HGAC). The van will be used in the City's Solid Waste Reduction Community Awareness Program and funding is provided from a Coastal Bend Council of Government pass-through grant ($22,266) and the Solid Waste Services operating budget ($1,451). Minutes Regular Council Meeting March 9, 1999 Page 7 The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, McNichols, and Neal voting "Aye"; Martin absent. 4. M99-059 Motion authorizing the City Manager or his designee to execute a construction contract with Fox Tree & Landscaping Nursery Inc. in the amount of $133,802.15 for the Whitecap Wastewater Treatment Plant expansion from 0.8 to 2.5 MGD landscaping project. The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, McNichols, and Neal voting "Aye"; Martin absent. 5.a. M99-060 Motion authorizing the City Manager or his designee to accept a grant in the amount of $57,517 and to execute a contract and all related documents with the Texas State Library and Archives Commission for the operation of the Technical Assistance Program through South Texas Library System, which is located at Corpus Christi Public Library, for the state fiscal year 1998-99. The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, McNichols, and Neal voting "Aye"; Martin absent. 5.b. ORDINANCE NO. 023570 Ordinance appropriating $57,517 from the Texas State Library and Archives Commission to operate the Technical Assistance Program through South Texas Library System located at Corpus Christi Public Library in the No. 1050 Federal/State grants funds. An emergency was declared and the foregoing ordinance passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, McNichols, and Neal voting "Aye"; Martin absent. 7. ORDINANCE NO. 023572 Ordinance amending Ordinance 023283 passed and approved on April 21, 1998, 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 Harvard Street improvements project: Harvard Street - Prescott Street to Vestal Street; Vitemb Street - Hudson Street to Rosalie Street; Vestal Street - Hudson Street to about 150 1.f. south of Rosalie Street; Rosalie Street - Vitemb Street to about 150 111 west of Vitemb Street (north side only). Minutes Regular Council Meeting March 9, 1999 Page 8 An emergency was declared and the foregoing ordinance passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, McNichols, and Neal voting "Aye"; Martin absent. 8. ORDINANCE NO. 023573 Amending Ordinance 8127, as amended, Section 550, Administration of the Compensation Plan, Subsection 551.5, Rate of Pay on Promotion, and Subsection 551.6, Rate of Pay Classification Changes, to provide the City Manager authority upon promotion or reclassification of an employee to approve compensation at any salary amount between minimum and maximum salary range in the higher salary grade when any exceptional experience, training, or labor market conditions justify the action. The foregoing ordinance passed on second reading by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, McNichols, and Neal voting "Aye"; Martin absent. * * * * * * * * * * * * * Mayor Neal opened the public hearing regarding a request to change street names in the northwest area. He called for comments from the audience, and there were none. Council Member Garcia made a motion to close the public hearing, seconded by Council Member Colmenero and passed. Responding to Mr. Garcia, City Manager Garcia said the city's cost to change the ground signs for the street names is $5,850. He said the numbers of property owners on the affected streets are: 135 on FM 624 within the city limits; 30 along the corresponding section of Up River Road; and 10 along the affected section of Leopard Street. He said the property owners were notified by mail that the City Council would be holding a public hearing on that date to consider the proposed street name changes. He added that the post office will have a transition period for the street name changes if they are approved and the police and fire departments will still know the addresses. The City Manager said no businesses in the affected areas have objected to the proposal. He added that this proposal is unrelated to a proposal that may be made to change Agnes Street within the city limits to Cesar Chavez Boulevard. Council Member Betty Jean Longoria explained that the Northwest Business Association has been working on the northwest street name changes for several years and they have contacted many of the property owners in that area. Responding to a question from Mrs. Longoria, Mr. David Seiler, City Traffic Engineer, said the Texas Department of Transportation indicated they will not change their freeway signs to reflect the "Northwest Boulevard" designation for FM 624 within the city limits until the signs are regularly scheduled to be replaced, which means the city would not have to pay for those sign costs. Minutes Regular Council Meeting March 9, 1999 Page 9 Council Member McNichols noted that the City Council established a policy of declining to change the names of streets in Corpus Christi except under unusual, extenuating circumstances. He questioned what the extenuating circumstances would be in this case. City Manager Garcia replied that the construction of the IH 37 interchange caused the normal traffic patterns of portions of Leopard Street and Up River Road to be disrupted, thereby segmenting those streets and causing confusion for people trying to locate addresses along them. With regard to FM 624, the residents and businesses in the area indicated that naming the city limits portion of that roadway to "Northwest Boulevard" helps give it definition. Council Member Martin said the extenuating circumstance surrounding the proposal to rename sections of Up River Road and Leopard Street is to clear up the confusion that has existed since those streets were segmented. In addition, the FM 624 proposal is not to rename the street but to give it a name within the city limits, since it currently only has its state designation, which will be retained as it is on other state highways within the city limits, such as Staples Street (FM 2444) and South Padre Island Drive (SH 358). Mr. Martin said that in the past petitions signed by the property owners in support of a proposed street name change were included, but he did not see any for this proposal. Mr. Seiler said the procedure states that if a petition for a street name change does not include all the names of the property owners, which this one did not, then the City Secretary's Office mails out notices to all of the property owners notifying them of the public hearing on the issue. He said the City Secretary's Office did that and they have not received any notices in opposition to the proposed street name changes. A brief discussion ensued and City Manager Garcia suggested that they hold this item to gather more information and bring it back to the Council. Council Member Garcia made a motion to table Item 9 for one week, seconded by Council Member Cooper. Mr. Larry Baker, representing the Northwest Business Association, further explained how Up River Road and Leopard Street became segmented and the confusion that has resulted. He said the association members have also been working to reach consensus for naming FM 624 as Northwest Boulevard, but there are many absentee property owners and they were not able to contact all of them. Council Member Martin asked if using the name "boulevard" for Northwest Boulevard would prohibit truck traffic, and Mr. Seiler said it would not. Council Member Garcia said the city should also determine what the cost would be for a homeowner or business to change a street name. Mayor Neal called for a voice vote on the motion to table Item 9 until March 16, 1999, and it passed by the following vote: Colmenero, Garcia, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper, Gonzales, and B. Longoria voting "No." Mayor Neal said this did not mean the Council was not in favor of the proposal, but more information about the process is needed. Minutes Regular Council Meeting March 9, 1999 Page 10 9.a. TABLED Establishing the street nai..e-eR"PNorthww.st Bottlevatiflt F.M. Highway 624 Letweei, U.S. 9.b. TABLED t Railroad Crossing Lcopard Strcct and U.S. IIighway 77. 9.c. TABLED Changing thc street name of "Leopard Street" on the west side of the Interstate` 37 .. - Redbi,d Lac. 9.d. TABLED Changing thc street name of "Lcopard Strcct" on the ca3t side of the Interstat., 37 Expressway to "Interstate 37 Access" between Sharpaburg Road and Rcdbird Lanc. ************* Mayor Neal opened the public hearing on the following zoning case: 10. Case No. 299-1, Gardner L. Grant, Trustee: A change of zoning from an "R -1B" One -family Dwelling District to a "B-1" Neighborhood Business District on Travis Addition Unit 3, Lot 1, located on the southeast corner of Dalraida Street and Carroll Lane. City Secretary Chapa said the Planning Commission and staff recommended approval of the "B-1" District. No one appeared in opposition to the zoning change. Council Member Garcia made a motion to close the public hearing, seconded by Council Member McNichols, and passed (B. Longoria absent). Responding to Council Member Martin, Mr. Michael Gunning, Acting Director of Planning and Development, said the phrase in the agenda material that "the applicant is in agreement with the Planning Commission's and staff's recommendation" is standard language. Mr. Chapa polled the Council for their votes as follows: ORDINANCE NO. 023574 Amending the Zoning Ordinance upon application by Gardner L. Grant, Trustee, by changing Minutes Regular Council Meeting March 9, 1999 Page 11 the zoning map in reference to Lot 1, Travis Addition Unit 3, from `R -1B" One -family Dwelling District to "B-1" Neighborhood Business District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. An emergency was declared and the foregoing ordinance passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, J. Longoria, Martin, McNichols, and Neal voting "Aye"; B. Longoria absent. * * * * * * * * * * * * * Mayor Neal opened the public hearing on the following zoning case: 11. ase No. 299-2. Richland Enterprises Ltd.: A change of zoning from an "R -1B" One -family Dwelling District to an "I-2" Light Industrial District on Brezina Farm Tracts, Block 2, Lot 1, located on the southeast corner of Bratton and Brezina Roads. City Secretary Chapa said the Planning Commission and staff recommended approval of the "I-2" District. No one appeared in opposition to the zoning change. Council Member Garcia made a motion to close the public hearing, seconded by Council Member Colmenero, and passed (B. Longoria absent). Mr. Chapa polled the Council for their votes as follows: ORDINANCE NO. 023575 Amending the Zoning Ordinance upon application by Richland Enterprises Ltd., by changing the zoning map in reference to Lot 1, Block 2, Brezina Farm Tracts, from "R -1B" One -fainly Dwelling District to "I-2" Light Industrial District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. An emergency was declared and the foregoing ordinance passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, J. Longoria, Martin, McNichols, and Neal voting "Aye"; B. Longoria absent. ************* Mayor Neal opened the public hearing on the following zoning case: 12. Case No. 299-3, ONAC Developer's Inc.: A change of zoning from an "A-1" Apartment House District and "B-4" General Business District to an "R -1C" One -family Dwelling District on Bohemian Colony Lands, Section 7, being 8.61 acres out of the northwest portion of 36.01 acres out of Lot 8, located on the south side of Holly Road, approximately 110 feet east of Palo Verde Street. Minutes Regular Council Meeting March 9, 1999 Page 12 City Secretary Chapa said the Planning Commission and staff recommended approval of the "R -1C" District. No one appeared in opposition to the zoning change. Council Member Garcia made a motion to close the public hearing, seconded by Council Member McNichols, and passed (Cooper absent). Responding to Council Member Martin, Mr. Gunning said the applicant can develop single- family residences under the existing zoning, but he would have to oversize the water and sewer lines to accommodate the Apartment House District zoning. Mr. Martin asked if flooding problems exist whether they will be dealt with through the platting process, and Mr. Gunning said that was correct. Mr. Chapa polled the Council for their votes as follows: 12. ORDINANCE NO. 023576 Amending the Zoning Ordinance upon application by ONAC Developers, Inc., by changing the zoning map in reference to being 8.61 acres out of the northwest portion of 36.01 acres out of Lot 8, Section 7, Bohemian Colony Lands, from "A-1" Apartment House District and "B-4" General Business District to "R -1C" One -family Dwelling District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. 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. * * * * * * * * * * * * * Mayor Neal opened the public hearing on the following zoning case: 13. Case No. 299-4 C.W.S. Communities Trust: A change of zoning from an "I-2" Light Industrial District to a "T -1B" Manufactured Home Park District on Bohemian Colony Lands, Section 8, Lot 8, located on the east side of Ayers Road, approximately 530 feet south of Holly Road. City Secretary Chapa said the Planning Commission and staff recommended approval of the "T -1B" District, and he noted that the applicant has requested that this item be tabled until the March 30, 1999 Council meeting. Mr. Gene Urban, representing the applicant, said the zoning process proceeded ahead of the platting process and the contract for the purchase of the property is tied to the approval of the zoning change. No one appeared in opposition to the zoning change. Council Member Garcia made a motion to close the public hearing, seconded by Council Member Colmenero, and passed. Mr. Garcia then made a motion to table Item 13 until March 30, 1999, seconded by Ms. Cooper, and passed. Responding to Mr. Martin, Mr. Chapa said the public hearing was closed and action was tabled. Minutes Regular Council Meeting March 9, 1999 Page 13 13. TABLED Amending thc Zoning Ordinance upon application by C.W.S. Communities Trust, by .- Colony Lands, from "I 2" Light Industrial District to "T 1B" Manufac • cd I Iomc Park District, amending thy, Comprehensive Plan to account for any deviations from thc existing Comprehensive Plan. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 14, stormwater discharge permit. He called for comments from the audience, and there were none. Council Member McNichols commented on the complexity of the permits that are required by the EPA and TNRCC, and he expressed frustration that the city is having to spend another $300,000 to renew its stormwater discharge permit. City Manager Garcia said he shares Dr, McNichols' frustration, and he noted that although Corpus Christi did not have to treat its stormwater runoff before discharging it, other communities have had to do so. He said the difficulty is that in order to effectively engage with EPA and TNRCC in negotiating the permit, the city has to have very technical advice about many aspects of the stormwater discharge processes, which are becoming more stringent. Dr. McNichols suggested that staff inform the consultants that they want them to use a conservative approach while still fulfilling the requirements to protect the bays and estuaries. Council Member Martin said he also understands Dr. McNichols' frustration about the cost of this item. He said that due to the importance of this permit, the city needs to be prepared to take the necessary steps to obtain it. Responding to Council Member Colmenero, Mr. Garcia said the City of Corpus Christi is at a disadvantage because it was the first Texas city to acquire this type of permit five years ago and now its permit is the first one that needs to be renewed. Mayor Neal noted that the Stormwater Management Advisory Committee unanimously approved this proposal. City Secretary Chapa polled the Council for their votes as follows: 14. M99-061 Motion authorizing the City Manager to accept the proposal of the law firm of Lloyd, Gosselink, Blevins, Rochelle, Baldwin & Townsend, P.C., to prepare and submit to the Texas Natural Resource Conservation Commission Corpus Christi's application for a five- year renewal of its permit to discharge water from its storm sewers in compliance with the National Pollutant Discharge Elimination System program. The hourly rate for assigned attorneys ranges from $135 to $190 with a median estimate for total services of $225,000, subject to appropriation which includes subcontracts for engineering services necessary for the application. Minutes Regular Council Meeting March 9, 1999 Page 14 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 15, upcoming sales of utility system revenue bonds. He called for comments from the audience, and there were none. City Manager Garcia explained that several weeks ago staff made a proposal to the Council that they conduct two financial transactions: issuance of utility system revenue bonds; and a utility advance delivery refunding. Mr. Jorge Garza, Assistant City Manager for Administrative Services, went on to describe the two requests for proposals the city issued on February 9, 1999. The first RFP was to execute the advance refunding for outstanding bonds (1994-95 issue) to refund the commercial paper that is currently outstanding, as well as to issue approximately $26.5 million for the repair of the Wesley Seale Dam. The other RFP was for approximately $50 million for forward delivery bonds. Mr. Garza said 17 responses to the RFPs were received: 9 for the first one and 8 for the second one. Mr. Garza said both city staff and the city's financial advisors, M.E. Allison & Company, reviewed the responses and they are recommending that Council authorize staff to allow Morgan Stanley Dean Witter to act as the senior manager for the refunding and sole manager for the forward delivery bond transaction. The refunding aspect would also consist of co -managers --Merrill Lynch, A.G. Edwards, and Estrada/Hinojosa & Co. Mr. Garza said the underwriting fee for both issues is $3.75 per $1,000 of bonds for an estimated amount of $410,500 plus expenses. Mayor Neal asked if it is known what the interest rate will be. Mr. Garza said the underwriter will give the city a quote of what they feel will be the market price for the bonds. Mayor Neal also asked about the criteria that was used to select the underwriter. Mr. Garza replied that all of the firms which submitted proposals are well-qualified. He said they reviewed the type and number of transactions the firms have conducted in Texas; in addition, the recommended underwriter said they will pay the city the amount of present value savings that the city would not otherwise receive in the event the transaction fell through. Responding to another question from Mayor Neal, Mr Garza said staff believes the transactions will result in actual cash savings. He said if the amount that would be realized is insufficient, they will recommend to the Council not to proceed with the transaction. Council Member Martin suggested that in the near future the underwriters should design a basic structure with estimated market rates to determine whether there actually will be "real -dollar" savings from the transaction, and then provide that information to the Council. Mr. Martin also referred to the statement in the background material which says "Morgan Minutes Regular Council Meeting March 9, 1999 Page 15 Stanley Dean Witter agrees to pay the expected present value savings if the firm breaks the forward repurchase agreement for reasons other than a termination event." He asked if the company had ever paid that amount to anyone, and a representative of the firm said they had not. Mayor Neal asked about forward delivery refunding, to which Mr. Garza briefly responded. City Secretary Chapa polled the Council for their votes as follows: 15.a. M99-062 Motion authorizing the appointment of underwriters Morgan Stanley Dean Witter as senior managers and Merrill Lynch, A.G. Edwards, and Estrada/Hinojosa & Co. as co -managers, for issuance of utility system bonds which will fund new projects, refund outstanding commercial paper and advance refunding of certain maturities of outstanding Series 1994 and 1995 utility systems revenue bonds. The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales. B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." 15.b. M99-063 Motion authorizing the appointment of Morgan Stanley Dean Witter as sole manager to be the underwriter for utility system forward delivery refunding bonds. The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." * * * * * * * * * * * * * Mayor Neal announced the four closed sessions, pursuant to Texas Government Code Section 551.071 regarding the following: 1.) City of Corpus Christi v. Advisory Commission on State Emergency Communications. No. 99-02304, 20151 District Court, Travis County, Texas, with possible action related thereto in open session; 2.) Texas Natural Resource Conservation Commission Notice of Enforcement Action, City of Corpus Christi Public Water Supply System, O.N. Stevens Water Treatment Plant, Corpus Christi, Nueces County, Docket No. 1998 -1391 -PWS - E, with possible action related thereto in open session; 3.) City of Corpus Christi v. John Comyn, Attorney General of Texas, No. 99-02000, 53rd District Court, Travis County, Texas, with possible action related thereto in open session; and 4.) Texas Natural Resource Conservation Commission proceeding on the City of Corpus Christi Solid Waste Facility (new landfill), State Office of Administrative Hearings Docket No. 582-98-2255, Texas Natural Resource Conservation Commission Docket No. 98 -1392 -MSW, with possible action related thereto in open session. The Council went into closed session. The Council returned from closed session. Minutes Regular Council Meeting March 9, 1999 Page 16 Mayor Neal made the following motion, seconded by Council Member Garcia. He called for a voice vote on the motion, and it passed: M.4. M99-064 Motion authorizing the City Manager to execute settlement documents in State Office of Administrative Hearings Docket No. 582-98-2255, Texas Natural Resource Conservation Commission Docket No. 98 -1392 -MSW, in the matter of the City of Corpus Christi proposed permit No. MSW -2269, for operation of a new municipal landfill, with Mr. and Mrs. Melvin Burch, Mr. Larry N. Koehn, and Ms. Yleen F. George, as negotiated by the City's attorneys. The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, J. Longoria, Martin, and Neal voting "Aye"; B. Longoria and McNichols absent. * * * * * * * * * * * * * Mayor Neal called for the City Manager's report. Mr. Garcia said he did not have a report, but staff wished to provide updates on the airport and the Texas Legislature. Ms. Bonnie Allin, Director of Aviation, explained that the federal grant program for the nation's airports was only funded for six months, ending on March 31, 1999. As a result, there is a great deal of activity at this time as both the U.S. Senate and House of Representatives are preparing aviation funding legislation. Ms. Allin said that with regard to Corpus Christi's terminal reconstruction project, it is important to have federal grant funding for this year as well as two additional years. She said if multi-year funding is not established through the federal legislation, they have worked with the Federal Aviation Administration (FAA) about the possibility of obtaining a letter of intent, which ties up the city's entitlement funds for three years and will allow the city to proceed with financing for the new terminal. Ms. Allin also said that she and City Manager Garcia are scheduled to attend a meeting in Washington, D.C., tomorrow to ask the FAA to restore the funding for the new control tower at the Corpus Christi International Airport, which affects how the terminal building is designed. Mr. Tom Utter, Assistant City Manager for Development Services, gave his weekly update on legislative issues in Austin. He said that over 3,500 bills have been filed thus far and the Texas Municipal League (TML) and the large Texas cities are tracking about 990 bills. Mr. Utter then reviewed the status of several legislative issues that the City Council had included in its approved legislative agenda, including franchise fees in relation to electric utility deregulation; hotel/motel tax for expansion of the Bayfront Plaza Convention Center; windstorm insurance; and others. Council Member Martin asked about legislation concerning the creation of fire control and prevention districts, which would be similar to crime control and prevention districts. The City Minutes Regular Council Meeting March 9, 1999 Page 17 Manager replied that that issue is principally being driven by the International Association of Firefighters, who see it as a tool to obtain additional funding not only for equipment and facilities but also for personnel costs (pay raises, etc.). Mr. Garcia said part of the reason he is generally supportive of the bill's concept is because it would allow the city to lay off a substantial portion of fire costs to a separate funding source, thereby freeing up more money in the General Fund. Mr. Martin noted that the bill is specific to Corpus Christi. Mr. Utter said the firefighters union had prepared a bill and city staff proposed its own version; he said the bill has not yet been introduced at the Legislature. Mr. Martin asked that the Council be kept informed about that issue, and a brief discussion ensued. Mr. Utter continued to describe the status of bills that relate to the city's legislative agenda. Mr. Martin also asked about the issue of a waiver of an agricultural rebate. Mr. Utter explained that it was included in TML's legislative agenda and Corpus Christi included it in their agenda. Mr. Martin referred to the issue of a rail policy, and Mr. Utter said they do not anticipate any action in the Legislature about that item. Mr. Martin also commented on the Workforce Development item. Responding to Council Member Garcia, Mr. Utter described some of the actions of the city's lobbyists. He said two of the issues they are focusing on are legislation regarding annexation and electric deregulation. Mr. Garcia asked about possible conflicts of interest pertaining to the lobbyists. Mr. Utter said that so far there have been none; however, the lobbyists' contracts require them to report any possible conflicts to the City Attorney. Council Member John Longoria asked about the statement in the city's legislative agenda which says that the city opposes legislation to authorize additional entities to employ and commission peace officers, which Mr. Utter and Mr. Bray explained. Responding to Council Member Colmenero, Mr. Utter said the Crosstown Expressway is scheduled to be repaved soon through the Texas Department of Transportation. In addition, the Crosstown/SPID interchange is included in TXDOT's transportation program. In his report, Mayor Neal asked about the information that needed to be submitted to the U.S. Census Bureau. City Secretary Chapa replied that the information has been submitted. Mayor Neal also said that a conclusion needs to be reached about who is responsible for mowing between the street and fence lines. City Manager Garcia replied that staff has developed a draft ordinance which establishes a structure for enforcing violations in a more expeditious manner. Mr. Bray said it would require a modification to the Building Standards Board in accordance with the state statute. Mayor Neal said that whatever ordinance the Council eventually adopts, it is important to communicate that to the citizens. He then called for Council concerns and reports. Mr. Martin suggested that a representative from Nueces County make a presentation to the City Council about the major projects they are proposing. Minutes Regular Council Meeting March 9, 1999 Page 18 Council Member Gonzales asked about the status of possibly privatizing city utility operations. City Manager Garcia said the Council asked staff to explore that idea; consequently, he established a task force and their strategy is to begin developing a request for proposals. He said the RFP will be very complicated because it involves performance standards for the city's entire utility system, while at the same time allowing existing employees the opportunity to become as efficient as possible (known as "re-engineering"). He said that process will probably take a year or more. Dr. Gonzales questioned whether the time table could be expedited. Mr. Garcia replied that he would not be able to make a recommendation to the Council until a fair comparison between the two options can be made. He said there are many cities in the country that have decided against privatizing their utilities systems because they have modern infrastructure and are able to operate efficiently. He noted that the only way a private company would be interested in Corpus Christi's system is if they can make a profit here, which he explained. Dr. Gonzales said he wanted to know that the City Manager was moving forward in the evaluation process. Mr. Garcia replied that staff is committed to going through the process but they intend to take the time they need to conduct the necessary research. In fact, he said, several of the task force members attended a national workshop in San Antonio on the issue of privatization. He added that staff will keep the Council informed as they go through the process. In reply to Council Member Betty Jean Longoria, Mr. Garcia said the privatization issue is very complex. He explained that the Council makes many decisions about the city's utilities on a routine basis. If they consider privatizing the utilities, they will need to give careful thought about how that will be structured and how much input they will continue to have in those processes. Mr. Garcia further described a typical method that a private company would use to take over the operation of a public utility. Council Member Garcia questioned the City Manager's estimated time table of a year or more to reach a decision about privatizing the utilities. He also wondered what incentive the city employees would have to maintain efficiency if they are the successful bidder for operating the utilities. City Manager Garcia replied that the Council's direction to him was to explore privatizing the utilities and there was not a time frame associated with that. He said as they have begun that process, it has become clear that they need to be judicious in the way they proceed. He said the Council could direct him to put the utilities out for bid in a specific period of time, but he feels they are proceeding expeditiously and taking into account all of the variables and people involved. Council Member Garcia suggested that the City Manager consider establishing an engineering committee (similar to the Planning Commission) that could assist the Council in reviewing complex engineering -related issues. Mr. Garcia also asked about an aspect of the seawall repairs, and the City Manager explained that the vinyl frame will be filled with concrete to help shore up the seawall. Responding to another question from Mr. Garcia, City Attorney Bray said staff will give a presentation in closed session on the City of San Juan vs. Central Power and Light. Minutes Regular Council Meeting March 9, 1999 Page 19 Council Member Garcia also asked staff to look into possible criminal activity at Hans Suter Park, and he requested a listing of contracts the city had in the last year that are less than $15,000 which did not require Council approval. City Manager Garcia said that since the city's financial system is brand new, he will need to explore how to provide that information to Council Member Garcia, who replied that if the process is more complicated than printing the information from the city's database, he will withdraw his request. Council Member John Longoria said the Council as a whole was not making that request. Council Member Gonzales said that Council Member Garcia had the right to make his request --if it is not excessive --without having a consensus of the Council. Council Member Betty Jean Longoria said she had received a complaint about illegal activities in the restroom facilities at West Guth Park. She also reported that one of the murals attached to the fence at the Workforce Development Center was loose, and she requested an updated list of the city's streets that would qualify for Community Development Block Grant funds. Council Member Colmenero requested a schedule of mowing activities by both the newly hired private contractor as well as city crews. He also reiterated the request made earlier about an update on pending 1986 bond projects. Council Member Cooper said she had forwarded a question from a constituent who wanted to know how far back the property line is for properties located along Holly Road. She said a number of people want to move their fences back and she questioned who they should contact. Mr. Ogilvie Gericke, Acting Assistant City Manager for Public Works and Utilities, said they can contact Mr. Ken Kohrs, Manager of Property and Land Acquisition. Ms. Cooper also thanked Mr. Garcia for providing a copy of the design of the Southeast Senior Citizen Center in his weekly report. She said she was pleased that it appears a consensus has been reached about that project. There being no further business to come before the Council, Mayor Neal declared the Council meeting adjourned at 8:00 p.m. on March 9, 1999. * * * * * * * * * * * * *