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HomeMy WebLinkAboutMinutes City Council - 10/23/2001I 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 October 23, 2001, which were approved by the City Council on October 30, 2001. WITNESSETH MY HAND AND SEAL, this 30th day of October, 2001. Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting October 23, 2001 2:10 p.m. PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Jesse Noyola Council Members: Javier D. Colmenero* Henry Garrett Bill Kelly Rex A. Kinnison John Longoria Mark Scott ABSENT Brent Chesney City Staff: City Manager David R. Garcia Deputy City Manager George Noe City Attorney James R. Bray Jr. City Secretary Armando Chapa Recording Secretary Rachelle P. Ramon Mayor Neal called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by the Mayor and the Pledge of Allegiance to the United States flag was led by Council Member Scott. 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 October 16, 2001. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * * * * Mayor Neal called for consideration of the consent agenda (Items 2-12). City Secretary Chapa said that Council Member Noyola would abstain from voting on Items 6 and 10. No items were pulled for discussion. Mr. Chapa polled the Council for their votes and the following were passed: 2. M2001-397 Motion approving a supply agreement with Southwest Stainless, LLP, dba Hughes Supply, San Antonio, Texas for approximately 2,277 cast iron foundry items in accordance with Bid Invitation No. BI -0004-02 based on low bid for an estimated annual expenditure of $54,789.29. The term of the supply agreement will be for twelve months with an option to extend for up to two additional twelve-month periods subject to the approval of the supplier and the City Manager or his designee. These items will be purchased into Warehouse Inventory and used by the Gas, Water, Wastewater, Stormwater, Street and Traffic Engineering Departments. Funds have been budgeted in FY2001-2002. The foregoing motion passed by the following vote: Neal, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney and Colmenero absent. Minutes - Regular Council Meeting October 23, 2001 Page 2 3. M2001-398 Motion approving a supply agreement for approximately 45,940 hours of temporary custodial services for the Convention Center and Coliseum in accordance with Bid Invitation No. BI - 0183 -01 with Spherion, Corpus Christi, Texas, based on best bid, for an estimated annual expenditure of $373,492.20. The term of the contract will be for twelve months with an option to extend for up to two additional twelve-month periods, subject to the approval of the supplier and the City Manager or his designee. Funds are budgeted in FY2001-2002. The foregoing motion passed by the following vote: Neal, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney and Colmenero absent. 4. M2001-399 Motion authorizing the acquisition of Parcel 12, out of Lot 5, Section 8, Bohemian Colony Lands, in the amount of $33,475 from the owner, Martha G. Spear in connection with the Lift Station Improvements and Carolyn Heights Diversion to Greenwood Wastewater Treatment Plant. The foregoing motion passed by the following vote: Neal, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney and Colmenero absent. 5. M2001-400 Motion authorizing the City Manager or his designee to execute a construction contract with MCC Construction Corporation in the amount of $51,385 for the Bayview Cemetery, Phase 2, fencing project. The foregoing motion passed by the following vote: Neal, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney and Colmenero absent. 6. M2001-401 Motion authorizing the City Manager or his designee to execute change orders 23 and 24 with Fulton/Coastcon Inc., a Joint Venture, totaling $43,817.17 for the Corpus Christi International Airport terminal project. The foregoing motion passed by the following vote: Neal, Garrett, Kelly, Kinnison, Longoria, and Scott voting "Aye"; Noyola abstaining; Chesney and Colmenero absent. 7. M2001-402 Motion authorizing the City Manager or his designee to execute a consulting contract with Alan Plummer & Associates Inc. in the amount of $104,500 for Nueces Delta monitoring Minutes - Regular Council Meeting October 23, 2001 Page 3 program, program coordination, and report integration services (Rincon Bayou diversions). The foregoing motion passed by the following vote: Neal, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney and Colmenero absent. 8. M2001-403 Motion authorizing the City Manager or his designee to execute a contract with Patrick F. Rice, conservator, dba Objects Conservation, in the amount of $16,028 for the restoration of the Pompeo Coppini fountain sculpture, Queen of the Sea. The foregoing motion passed by the following vote: Neal, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney and Colmenero absent. 9. M2001-404 Motion granting a permit to Sabco Operating Company to drill an oil and gas well at an exceptional location, approximately 5.3 miles eastward of the Corpus Christi Marina in Corpus Christi Bay, as State Tract 55, Well #5. The foregoing motion passed by the following vote: Neal, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney and Colmenero absent. 10. ORDINANCE NO. 024638 Ordinance authorizing the City Manager or his designee to execute an oil and gas lease on approximately 1,136.227 acres of land owned by the City of Corpus Christi near the Corpus Christi International Airport for a cash bonus bid of $193,764, $25.00 per acre delay rentals, 25% royalty, with a three-year term, as may be extended indefinitely by continuing drilling operations. The foregoing ordinance passed on second reading by the following vote: Neal, Garrett, Kelly, Kinnison, Longoria, and Scott voting "Aye"; Noyola abstaining; Chesney and Colmenero absent. 11.a. ORDINANCE NO. 024639 Ordinance approving a special warranty deed conveying a tract of land containing 35.07 acres, more or less, out of a 400 -acre tract of the Mariano L. De Herrera Grant, Abstract 606, said 400 -acre tract conveyed by Bess L. Hurt, et vir, to Nina G. Stewart, widow, by deed dated June 23, 1944, and recorded in Volume 300, Page 153, Deed Records of Nueces County, Texas from the City of Corpus Christi to the Nueces County Industrial Development Corporation and authorizing the City Manager or his designee to execute the deed. T r Minutes - Regular Council Meeting October 23, 2001 Page 4 The foregoing ordinance passed on second reading by the following vote: Neal, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney and Colmenero absent. 11.b. ORDINANCE NO, 024640 Ordinance approving a quit -claim deed conveying 38.07 acres of land, more or less, out of Mariano L. De Herrera Grant, Abstract 606, being out of a 493.66 -acre tract, said 493.66 acres being more particularly described in Volume 1643, Page 224, Deed Records of Nueces County, Texas, said 38.07 acres being same property identified under Tax Account Number 3360-0549-0300 in the official records of the Nueces County Appraisal District from the City of Corpus Christi to the Nueces County Industrial Development Corporation and authorizing the City Manager or his designee to execute the deed. The foregoing ordinance passed on second reading by the following vote: Neal, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney and Colmenero absent. 12. ORDINANCE NO. 024641 Ordinance authorizing the approval of a land exchange contract with the Texas Parks and Wildlife Department for the exchange of two 2.066 -acre tracts between the City and the Texas Parks and Wildlife Department and authorizing the City Manager or his designee to execute same. The foregoing ordinance passed on second reading by the following vote: Neal, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney and Colmenero absent. * * * * * * * * * * * * * Mayor Neal referred to Item 13, and a motion was made, seconded and passed to open the public hearing on the following zoning case: 13. Case No. 0901-01. Murray Bass, Jr.: A change of zoning from an "A-1" Apartment House District to a "B-1" Neighborhood Business District on Lindale Park 4, Block 36, on the north side of McCall Street, approximately 120 feet west of Reid Drive. City Secretary Chapa said the Planning Commission and staff recommended denial of the "B-1" District, and in lieu thereof, approval of a special permit for an off-site parking lot subject to a site plan and five (5) conditions. No one appeared in opposition to the zoning change. Mr. Kelly made a motion to close the public hearing, seconded by Mr. Kinnison, and passed. Mr. Chapa polled the Council for their votes as follows: ORDINANCE NO. 024642 Amending the Zoning Ordinance upon application by Murray Bass, Jr., by changing the Minutes - Regular Council Meeting October 23, 2001 Page 5 zoning map in reference to Lot 3, Block 36, Lindale Park Unit 4, (currently zoned "A-1" Apartment House District) by granting a special permit for an off-site parking lot subject to a site plan and five (5) conditions; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. An emergency was declared and the foregoing ordinance passed as follows: Neal, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney and Colmenero absent. City Manager Garcia introduced Ms. Donna James, the new Manager of the Safety and Risk Department. Ms. James said she is looking forward to working with staff in her new position. * * * * * * * * * * * * * Mayor Neal referred to the presentations on the day's agenda. The first presentation (Item 14) was made by Mr. John Dykema, past chairman of the board and current chair of the Building Committee of the South Texas Institute for the Arts. He referred to a model of the art museum's facility expansion project, noting that the expansion will now be completely situated on city property. He said a previous proposal involved using about 10% of the Corps of Engineers' property but its acquisition was very complicated and an alternate proposal was developed by the architect. Mr. Dykema said this expansion will approximately double the size of the current art museum and will create a new entrance in addition to the existing front entrance, as well as a rearrangement of the parking lot. He said the designers have been working with the architects of the convention center expansion project to coordinate their efforts. He said the art museum's design will accommodate a circular drive if one is built but it is not in the art museum's budget. Mr. Dykema said their fund raising goal is approximately $6 million ($5 million for the addition and $1 million as an endowment to continue its maintenance), adding that they are looking forward to the continued support of the city through the annual $200,000 allocation. Mayor Neal said this proposal will be a great addition to the city's bayfront. Mr. Dykema said the expansion will include a new gallery with natural lighting. * * * * * * * * * * * * * The second presentation (Item 15) was the strategy for improved animal euthanasia/control practices. City Manager Garcia said this issue was raised by concemed citizens and staff has been meeting with them to develop this proposal. Mr. Mark McDaniel, Director of Management and Budget, explained that currently the Health Department primarily uses carbon monoxide gas to euthanize approximately 15,000 animals per year. He said staff uses lethal injection for animals under three weeks of age and ill and injured animals in the field. He said the city does not have a significant public education effort because all the resources in this area are dedicated to collecting and handling the animals. Minutes - Regular Council Meeting October 23, 2001 Page 6 Mr. McDaniel said that staff is recommending the following program improvements: broaden the use of lethal injection to include animals under four months of age and hire a public education specialist to increase awareness of the unwanted animal population problem and promote spaying, neutering and adopting of animals. He explained that the American Veterinary Association's guidelines promote the use of lethal injection rather than carbon monoxide gas for cats and dogs under four months of age (as determined by the presence of adult canine teeth at least half extended). He said the public education specialist will be responsible for building community partnerships, developing a network of support, increasing public relations efforts, and applying for grant funding. The Budget Director said the cost to implement the enhancements beginning January 1, 2002 is approximately $25,000, which includes $2,000 for the broadened use of lethal injection and $23,000 for the public education program ($19,775 for the educator; $1,225 for mileage; and $2,000 for educational materials). Funding through the end of this fiscal year (July 31, 2002) will be provided through salary savings identified in other Health Department divisions. Responding to Mayor Neal, Dr. Nina Sisley, Director of Public Health, explained that citizens had expressed concern that animals older than three weeks being euthanized in a chamber would not die instantly --that they would suffer unnecessarily. She said with the use of lethal injection the animal dies immediately. Mr. Garcia said that during staff's meetings with concerned citizens, staff emphasized the magnitude of the unwanted pet population. He said they all came to the conclusion that the root cause of the problem is a lack of education about responsible pet ownership. He said the city had a public education staff member but that position was cut several years ago due to budget constraints. Council Member Scott said he and probably the other Council members had received several phone calls from concerned citizens about this issue. He thanked those citizens and staff for their efforts to improve this process. Mayor Neal said there was Council consensus for staff to proceed. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 16, HEB Tennis Center expansion. Mr. Steve Denton, who has been associated with the center for many years and the tennis coach of Texas A&M University -Corpus Christi, explained that the Corpus Christi Tennis Association has raised approximately $1.4 million for the project. He said the architects are Richter & Associates and the organizers anticipate being able to break ground in the near future with a 210 -day construction schedule. Mr. Denton noted that some funds have been used to upgrade the center. The expansion will include three covered courts with a new stadium, new locker rooms and new restrooms. The Mayor thanked Mr. Denton for his leadership over the years. City Secretary Chapa polled the Council for their votes as follows: 16.a. ORDINANCE NO. 024643 Ordinance appropriating $8,000 from HEB Trust Fund interest earnings for the HEB Tennis Center Trust for the HEB Tennis Center expansion, Mildred and Lloyd Sessions Tennis Minutes - Regular Council Meeting October 23, 2001 Page 7 Pavilion; amending the FY2001-2002 Budget, adopted by Ordinance No. 024528, by adding $8,000 to Trust Fund No. 6010. An emergency was declared and the foregoing ordinance passed as follows: Neal, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney and Colmenero absent. 16.b. M2001-405 Motion authorizing the City Manager or his designee to execute a project management agreement with the Corpus Christi Tennis Association Inc. for the HEB Tennis Center expansion (Mildred and Lloyd Sessions Tennis Pavilion), and authorizing a transfer of $340,000 from the HEB Tennis Center Trust Fund and $246,138.50 from the No. 3288 Park Capital Project Fund; subject to ratification of the agreement by the Corpus Christi Tennis Association Board of Directors. The foregoing motion passed by the following vote: Neal, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney and Colmenero absent. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 17, taxation of leased motor vehicles. He called for comments from the audience. Mr. Jon Buquet, Executive Director of the Coastal Bend New Car Dealers Association, introduced Mr. Phil Cates, a member of the Texas Chapter of the Leasing Association. Mr. Buquet said that Senate Bill 248 (which enacted the constitutional amendment exempting leased motor vehicles from taxation if they are for personal use) was originally drafted as a business tax; he said it was not intended to tax families who are leasing a vehicle. *Council Member Colmenero arrived at 2:40 p.m. Mr. Buquet said that Texas was one of the few states that charged property tax on leased personal vehicles. He said the association questions why a personal property tax should be paid on a leased vehicle when it is not paid on a purchased vehicle. He added that leasing has become more practical for Texas families because of the different financing mechanisms. With regard to SB 248, Mr. Cates said the City of Houston requested that municipalities be allowed to opt out of the legislation, thereby continuing to collect ad valorem taxes on leased vehicles. He said if cities choose to opt out, the result will be that leasing companies will relocate to outside a city's limits. He noted that all current leases will continue to pay the tax --it will only affect those entered into on or after January 2, 2001. Responding to Mayor Neal, Mr. McDaniel said the tax appraisal district does not know which leases are for business use and which are for personal use. As a result, the impact of SB 248 on cities Minutes - Regular Council Meeting October 23, 2001 Page 8 is not clear. He said the city's estimated financial impact assumed that about 45% of the total number of leased vehicles would be used for personal reasons; however, the car industry says that the statewide average is closer to 60% for personal use. He said the estimated revenue loss of $245,000 is conservative and it could be higher. He said the figures were provided by the appraisal district, which was unable to provide additional detail. Consequently, the district will have to develop forms to distinguish between personal and business leased vehicles. Mr. McDaniel said staff believes there is a strong likelihood that the Texas Legislature will make this exemption permanent during its next session in 2003. He said since the city is careful about not compromising any of its revenue stream and since there are still many unknowns about the financial impact, staff is recommending that the city opt out of SB 248 at this time. Mr. McDaniel said the district's appraisals will not affect the city's FY 2001-02 budget but it will affect the FY 2002-03 budget. He said the city has until December 31, 2001 to opt out if it chooses. Mr. Buquet agreed that the appraisal district does not know exactly how many vehicles are leased for personal versus business reasons. Council Member Scott asked what is the estimated price for a leased car. Mr. Cates said it is at least $20,000 although it is probably higher. He said the comptroller is developing a form for companies which provide leased vehicles. The form contains an oath that the lessee will have to sign and have notarized if the lease is for personal use. He added that if a person claims a business deduction for a leased vehicle on his federal income tax return, he will still have to pay the personal property tax. Mr. Cates said there are 88 taxing entities in Travis County alone and no two of those collect the tax equally. Council Member Colmenero asked how many vehicles are leased each year in the city limits. Mr. Buquet said it would take time for him to ascertain that information. Mr. McDaniel said based on the information staff has, they are estimating the number to be 4,250 vehicles. He said people in Texas do not lease very many vehicles and the Texas Municipal League feels that removing the tax will not significantly increase the number of vehicles that are leased. Council Member Kelly asked if a person leasing a car would have to pay a sales tax in addition to the ad valorem tax, and Mr. McDaniel replied affirmatively. He noted that when a person buys a new car, the city does not receive any of the sales tax. He added that staff's estimates include the sales tax amount that could result from a possible increase in leased vehicles. Responding to Council Member Kinnison, Mr. McDaniel said that in order for the city to break even, an additional 4,533 vehicles would have to be leased. Mr. Kinnison asked if the car industry had any information to back up their contention that the tax exemption would have an impact on the number of leases. Mr. Buquet said the Leasing Association and the Car Dealers Association both feel that balloon notes make leasing more available to families. Mr. J.E. O'Brien, 4130 Pompano, said the figure of $245,000 in lost revenue is very unclear. He questioned whether it includes all leased vehicles or only those used for personal reasons. He said a portion of the proposed ordinance is incorrect. Minutes - Regular Council Meeting October 23, 2001 Page 9 Mr. Jack Gordy, 310 Norton St., said once a person receives a car allowance, he has to pay ad valorem tax on his leased vehicle. He said much of the data from the appraisal district was unclear and staff has not provided sufficient information on this issue. In reply to Mayor Neal, City Attorney Bray said the proposed ordinance includes an accurate summary of SB 248. City Secretary Chapa polled the Council for their votes as follows: 17. FAILED ulanCc p.00,milg tot GOutuluat1 1 of as Dalvh n taaauon OI lcasca niotul oc1,LGtcs. The foregoing ordinance failed to pass on second reading by the following vote: Kinnison and Longoria voting "Aye"; Neal, Colmenero, Garrett, Kelly, Noyola, and Scott voting "No"; Chesney absent. Mayor Neal asked what the next step will be. City Manager Garcia replied that staff will have to bring back some recommendations on how to make up the projected revenue shortfall. The Mayor said one of the reasons he voted "No" is because this does not impact the city's current budget and staff has time to prepare another proposal. * * * * * * * * * * * * * Mayor Neal called for the City Manager's report. Mr. Garcia said one of the new staff positions that was approved in the last budget was for a Strategic Water Advisor to address the long- range planning of the city's water resources. Mr. Ron Massey, Assistant City Manager for Public Works and Utilities, introduced Mr. Max Castefieda, who previously worked for the Texas Water Development Board in Austin. Mr. Castefieda spoke positively about his new position. * * * * * * * * * * * * * Mayor Neal called for petitions from the audience. Mr. Phil Rosenstein said most of Mr. Gordy's remarks about signs are false and misleading and he feels those remarks are a harassment of political candidates. Mr. Rosenstein said he questioned Mr. Gordy about his remarks and was told that he could see the signs from the freeway but they were not actually in the freeway right-of-way (which is illegal). Mr. Rosenstein said most of the political signs are on private property and Mr. Gordy is carrying out a personal vendetta against political candidates who erect signs. There being no further business to come before the Council, Mayor Neal adjourned the Council meeting at 3:15 p.m. on October 23, 2001. * * * * * * * * * * * * *