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HomeMy WebLinkAboutMinutes City Council - 07/16/2002I 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 July 16, 2002, which were approved by the City Council on July 23, 2002. WITNESSETH MY HAND AND SEAL, this 23rd day of July 2002. Armando Chapa City Secretary SEAL PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Bill Kelly Council Members: Brent Chesney Javier D. Colmenero Henry Garrett Rex A. Kinnison John Longoria* Jesse Noyola Mark Scott MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting July 16, 2002 - 2:05 p.m. 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 Parry Mayor Neal called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Rev. Ben Nelson, Associate Minister of the Church of the Good Shepherd Episcopal, and the Pledge of Allegiance to the United States flag was led by Council Member Colmenero. 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 July 9, 2002. A motion was made and passed to approve the minutes as presented. Mayor Neal made the following statement: "Many years ago the City Council adopted rules of decorum to facilitate a civil atmosphere in which different viewpoints may be presented. Parts of those rules admonish that: 'No Council member, staff person, or members of the audience shall berate, embarrass, accuse, or show any personal disrespect for any member of the staff, Council members, or the public at any Council meeting.' This statement has also appeared on Council agendas for some time." The Mayor continued, "On the basis of this provision, I responded to certain remarks made at the last meeting. Subsequently, I was advised that the Council rules also state that `These rules are not meant to restrain a citizen's First Amendment rights.' I have been advised that on these items where public comment is sought, a speaker may make intemperate remarks, even if offensive to reasonable people. The remarks must, of course, comply with the general rules that apply to all speakers: 1. They must be related to that particular agenda item; 2. They must be made from the podium; 3. They must be made within the assigned time limit, if any is set; 4. They must be directed to the Council as a whole, not to individuals or the audience; 5. They must not be repetitive; and 6. They must not violate any law, such as the disorderly conduct provision of the Penal Code. In addition, behavior in the chamber that is disruptive of the meeting, such as speaking out from the audience, display of signs and so forth, is not and will not be permitted." Minutes - Regular Council Meeting July 16, 2002 - Page 2 The Mayor concluded, "In any event, I encourage speakers to be respectful to all persons. This is the most productive way to give everyone a fair chance to present diverse viewpoints and enable the Council to make the best -informed decision." * * * * * * * * * * * * * Mayor Neal called for consideration of the consent agenda (Items 2-18). There were no comments from the Council or the audience. City Secretary Chapa polled the Council for their votes: 2. M2002-200 Motion approving the purchase of 128,000 library book bags from Continental Superbag of Cedar Grove, New Jersey, in accordance with Bid Invitation No. BI -0104-02, based on low bid meeting specifications for a total amount of $33,187. The book bags will be distributed by the South Texas Library System (SUS). Funds are available through a Libraries Systems Act (LSA) grant. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 3. M2002-201 Motion approving the purchase of one forklift and one aerial work platform from the following companies for the following amounts, in accordance with Bid Invitation No. BI - 0100 -02, based on low bid meeting specifications, for a total of $62,267. This equipment will be used by the Convention Center. Both units are replacements to the fleet. Funds are available through the FY2001-2002 Capital Outlay Fund. Mustang Industrial Equipment Co. H&E Hi -Lift of Corpus Christi Grand Total: Corpus Christi, Texas Corpus Christi Texas $62,267 Bid Item 1 Bid Item 2 $20,935 $41,332 The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 4. M2002-202 Motion approving a supply agreement with U.S. Filter Distribution Group of Corpus Christi, Texas, for pre -fabricated manholes in accordance with Bid Invitation No. BI -0098-02 based on low bid for an estimated annual expenditure of $34,216.83. The term of the 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. Funds have been budgeted in FY2001-2002 and requested for FY 2002-2003. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. Minutes - Regular Council Meeting July 16, 2002 - Page 3 5. M2002-203 Motion approving supply agreements with the following companies for the following amounts in accordance with the Coastal Bend Council of Governments Bid Invitation No. CBCOG-02-5 for paper goods, for an estimated six-month expenditure of $33,632.02 based on the recommended award submitted by the Coastal Bend Council of Governments. The term of the contracts shall be for six months with an option to extend for one additional six- month period, subject to the approval of the Coastal Bend Council of Governments, the suppliers, and the City Manager or his designee. Funds have been budgeted by Senior Community Services in FY 2001-2002 and requested in FY 2002-2003. Ben E. Keith San Antonio. TX $264.76 PFG Victoria. TX $2,110.02 C.C. Distributors Gulf orpus Christi. TX $1,702.82 Sysco Food Service San Antonio. TX $1,417.05 Coast Paper Co. Corpus Christi. TX $28,137.37 Grand Total: $33,632.02 The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 6. M2002-204 Motion approving supply agreements with the following companies for the following amounts in accordance with Coastal Bend Council of Governments Bid Invitation No. CBCOG-02-3 for food items which include canned and frozen fruit and vegetables, meats and condiments for an estimated six-month expenditure of $111,760.64 based on the recommended award submitted by the Coastal Bend Council of Governments. The terms of the contracts shall be for six months with an option to extend for up to three additional months, subject to the approval of the Coastal Bend Council of Governments, the suppliers, and the City Manager or his designee. Funds have been budgeted by Senior Community Services in FY2001-2002 and requested in FY 2002-2003. Ben E. Keith San Antonio. TX 26 Items $11,228.55 PFG Victoria. TX 55 Items $49,277.75 LaBatt Food Service Corpus Christi. TX 75 Items $35,624.06 Sysco Food Service San Antonio. TX 32 Items $15,175.46 Lance, Inc. Charlotte. NC 2 Items $454.82 Grand Total: $111,760.64 The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. Minutes - Regular Council Meeting July 16, 2002 - Page 4 7. M2002-20� Motion authorizing the City Manager or his designee to execute a construction contract with Pate & Pate, LLC, of The Woodlands, Texas, in the amount of $959,685 for the Corpus Christi International Airport lift station and sanitary sewer relocation project. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 8. M2002-206 Motion authorizing the City Manager or his designee to execute a construction contract with R.S. Black Civil Engineers & Contractors/Machinery & Materials Inc. of Corpus Christi, Texas, for a total fee not to exceed $119,000 for the Padre Island pump station valve automation and instrumentation project. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 9. M2002-207 Motion authorizing the City Manager or his designee to execute a construction contract with Fairbairn Electric Inc. of Corpus Christi, Texas, in the amount of $191,756 for the Holly Road pump station miscellaneous electrical improvements. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 10. M2002-208 Motion authorizing the City Manager or his designee to execute a twelve-month software maintenance agreement with H.T.E. Inc. of Lake Mary, Florida, in an amount not to exceed $97,350. Included in the agreement are the H.T.E. modules for the Utilities Business Office, Central Cashiering, Accounts Receivables and Collections. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 11. M2002-209 Motion approving the purchase of 62 printers and a three-year warranty from CDW Government Inc. of Chicago, Illinois, in accordance with the State of Texas Cooperative Purchasing Program for the total amount of $29,185.16. The equipment is for the Police Department funded through the COPS MORE grant. Minutes - Regular Council Meeting July 16, 2002 - Page 5 The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 12.a. M2002-210 Motion authorizing the City Manager or his designee to accept a grant in the amount of $60,180 from the State of Texas, Criminal Justice Division for funding available under the Victims of Crime Act (VOCA) Fund and to execute all related documents. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 12.b. ORDINANCE NO. 024942 Ordinance appropriating $55,844 from the State of Texas, Criminal Justice Division in the No. 1050 Federal/State Grants Fund for funding available under the Victims of Crime Act (VOCA) Fund; transferring $7,700 from the No. 6010 Law Enforcement Trust Fund and appropriating it in the No. 1050 Federal/State Grants Fund as grant matching funds. An emergency was declared and the foregoing ordinance passed as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 13.a. M2002-211 Motion authorizing the City Manager or his designee to accept a renewal grant in the amount of $209,621 and execute a contract with the Corporation for National and Community Service for the continuation of the Senior Companion Program. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 13.b. ORDINANCE NO. 024943 Ordinance appropriating $209,621 from a grant from the Corporation for National and Community Service in the No. 1050 Federal/State Grants Fund for the Senior Companion Program. An emergency was declared and the foregoing ordinance passed as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 14. RESOLUTION NO. 024944 Resolution authorizing the City Manager or his designee to execute all necessary documents for continued financial assistance through the Texas General Land Office for beach cleaning and maintenance on North Padre and Mustang Islands during FY 2002-2003. Minutes - Regular Council Meeting July 16, 2002 - Page 6 The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 15. RESOLUTION NO. 024945 Resolution authorizing the City Manager or his designee to submit a grant application to the Telecommunications Infrastructure Fund Board in the amount of $55,000 to provide internes and application computer workstations at Corpus Christi public libraries for individuals with visual, hearing and mobility disabilities. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 16. RESOLUTION NO. 024946 Resolution authorizing the City Manager or his designee to execute a memorandum of understanding with the Texas State Library and Archives Commission to establish and maintain a video conferencing system with the City of Corpus Christi Central Library. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 17. ORDINANCE NO. 024947 Ordinance authorizing the City Manager or his designee to execute a one-month lease with E.M. Marketing Inc. of Corpus Christi, Texas, for the use of City bayfront property to conduct the powerboat racing event. An emergency was declared and the foregoing ordinance passed as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 18. FIRST READING ORDINANCE Ordinance authorizing the City Manager or his designee to execute a five-year lease with the Young Men's Christian Association of Corpus Christi (YMCA), a non-profit corporation, for the use of T.C. Ayers swimming pool and adjacent grounds and in consideration of the Young Men's Christian Association maintaining the premises and improvements. The foregoing ordinance passed on first reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. *********** Mayor Neal referred to Item 19, a presentation by National Golf Foundation Consulting Inc. (NGF) on the results of the area golf market study as approved by the City Council on March 26, Minutes - Regular Council Meeting July 16, 2002 - Page 7 2002. Mr. Dan Whitworth, Director of Park and Recreation, introduced Mr. Darrin B. Davis, Senior Project Director with NGF, who gave a computer presentation about the study. Mr. Davis said the key elements of the golf market analysis were: socio-economic environment; estimated demand for golf; golf course supply in the Corpus Christi market; market status conclusions; and the expected performance of a proposed golf course. (The market area is defined as a 40 -mile radius around Corpus Christi.) He said they concluded that Corpus Christi and the surrounding market is facing basically a low -growth situation. Responding to Council Member Scott, Mr. Davis said the data periods varied, depending on which factor they looked at; however, typically they chose to observe five-year and 10 -year trends. Mr. Scott said that while over a 12 -year period Corpus Christi's numbers are bad, they are dramatically different (much higher) over the last two years. He said he thought NGF's numbers were flawed and he pointed out that Corpus Christi is experiencing its lowest unemployment ever. Mr. Davis said the economic analysis should be viewed as a framework since there is no way to predict the future with any certainty. Council Member Chesney asked if there was a way to supplement the report with a five-year analysis, instead of going back 10 years. Mr. Davis said that generally speaking, five-year trends are included in the analysis. He added that he does not think it significantly alters the recommendation. Mr. Davis described the factors that led to his characterization of Corpus Christi as having a stable, low -growth economy. He said the market population is growing at one-third to one-half the rate of growth of the population of the state overall; median household income levels are 20% lower than those for the state (25% lower by 2005); the civilian labor force has actually decreased since 1995; local unemployment rates are slightly higher than unemployment rates for the state; employment is concentrated in and dependent upon petroleum/petrochemicals and military infrastructure industries; and no changes are foreseen in key industries. Mr. Davis reiterated that the economic factors are merely a framework and the best determinant of how golf facilities are operating are to look at them specifically. Mr. Davis then referred to NGF's golf demand model, which indicates that there are over 30,000 potential golfers in the Corpus Christi market. He said "potential golfers" are determined by first looking at the playing patterns of Texans in general and then observing the demographic characteristics of the local market (such as age and income patterns). He said the demand model estimates that there are in excess of 320,000 potential rounds of golf available in this market, which will increase to 334,000 in 2005. Mr. Davis discussed the golf supply in the Corpus Christi market. He said the majority of golf facilities are over 30 years old and the amenities are consistent with the facilities' ages. In addition, the fees fall into a very compressed range compared to what NGF has examined in other markets around the country. He said that means golfers in this area are price -sensitive and the majority of public -access golf supply is oriented toward the lower end of the market. He said that since 1998, there has been a decline in the number of rounds played at Oso and Gabe Lozano golf courses on both the 18 -hole and executive courses. He also reviewed photographs of the courses, saying that there may be irrigation and turf issues that need to be addressed. Minutes - Regular Council Meeting July 16, 2002 - Page 8 In addition, Mr. Davis said he noted in his report that an increase in the local Hispanic population might be affecting the number of rounds played. He explained that Hispanics and other minority populations have not had the exposure to golf that many other populations have had. He said it is possible that from a programming perspective, intermediate changes can be implemented to bolster golf participation. Mr. Davis said the market shows that there is an excess demand of potential rounds. He also noted that there are weaknesses in the model because it is a state golf participation model that has been applied to a local market. Responding to Council Member Kelly, Mr. Davis said the study addresses rounds at public - access facilities within the market place, which NGF determined to be a 40 -mile radius around the city of Corpus Christi. He said he included the rounds played at North Shore Country Club because they do a lot of package play and, in a sense, they are functioning as a quasi -/semi -private facility. *Council Member Longoria arrived at the Council meeting. Mr. Davis said the market is basically at equilibrium and he concluded that it may not make sense for a new facility to open in this market place at this time. He said since the number of rounds has been tapering off since 1998, he feels that introducing a new facility in this environment would be a serious detriment to the existing facilities unless something is done to those facilities to make sure they represented the strength of Corpus Christi. He said the market-based warranted investment for a new golf course is $2.6 million; however, he said there are not many golf courses today being built for that amount. He said an average golf course (excluding land) costs $4 million to $6 million and he noted that a golf course needs to be looked at as a 20- to 30 -year asset. Mr. Davis said his recommendation is to pursue major renovation projects at the existing golf facilities, thereby avoiding the potential of new course cannibalization of rounds from older courses; and reinforce and strengthen player development programs and facilities to address demographic shifts in the population. Mayor Neal asked if NGF reviewed the possibility of developing an additional nine holes at one of the existing golf facilities. Mr. Whitworth said he did not think NGF had specifically looked at that option but --as a result of the study's conclusions --it may need to be examined. Mr. Davis said the addition of a nine -hole facility would be somewhat akin to the development of an 18 -hole facility in that it would attract a lot of play. He said he does not believe that the existing courses are merely suffering from wear and tear but from systemic issues as well. He said they are recommending that an architect review what capital improvements need to be made in the long-term. Mr. Chesney said he thought the Council had asked that this study address several issues. Mr. Whitworth replied that the original scope of the study was to look at the feasibility of a third golf course and the second phase of the contract was to do some preliminary design work on that third course. He said as a result of the consultant's recommendations, staff will examine both golf courses and develop a prioritized list of capital improvements that will contribute to their long-term viability. Mr. Chesney asked if it could include nine additional holes and Mr. Whitworth replied affirmatively. Replying to Mr. Chesney, Mr. Davis said the numbers show that an additional course could Minutes - Regular Council Meeting July 16, 2002 - Page 9 be sustained but, from a financial perspective, it would not make sense to try and develop it at the level of investment that the report shows and it would be at the detriment of the existing facilities. Mr. Chesney asked if there is a "trigger point" at which a third golf course could be sustained without hurting the other facilities. Mr. Davis said he would like to see good performance at the existing facilities. Mr. Chesney asked additional questions, and Mr. Davis replied that the number of rounds being played is fairly high, which is typical of municipal facilities because they tend to price them at very low rates. However, he said it is alarming that the number of rounds has been declining over a five-year period. Mr. Davis added that low rates hurt the long-term existence of municipal golf operations, which he explained. He said he estimates that Corpus Christi's municipal golf rates are $10 to $15 below the average. In response to Council Member Colmenero, Mr. Davis said the good news is that the city has two assets (the two existing golf courses) and it would make no sense to close them down and move on. He said there is established play at those two facilities; i.e., golfers in this area are willing to tolerate less than ideal conditions for a golf experience. He said the bad news is that they are not recommending building a new golf course at this time. Responding to another question from Mr. Colmenero, Mr. Davis said the downward spiraling he referred to was regarding the condition of the existing golf facilities and not the local economy itself, which he described as soft and low -growth while still being a sustainable economy. Mr. Davis further described supply and demand elements, saying he has never relied solely on the response of the demand model to dictate his recommendations; rather, the key drivers are the existing facilities' performance and Local economy. Replying to Council Member Kelly, Mr. Davis said he visited Corpus Christi from April 9- 12, 2002 and met with five city employees from which he obtained information regarding the city's existing golf facilities and solicited their input on the local golf market. Mr. Kelly asked Mr. Davis if he met with representatives from other entities, such as the Convention and Visitors Bureau, local realtors and industries. Mr. Davis said the data he gathered from those sources tended to be internet sites. Mr. Kelly said that in the last few years, the community has made unprecedented capital investments to improve the tourist industry and gains have been made in creating new jobs, which Mr. Davis did not discuss in his report. Mr. Kelly also asked about specific data contained in the report. Mr. Davis said NGF has a contract with Claritas, the leading supplier of demographic information in the United States. Mr. Kelly asked about the declination of golf rounds, and Mr. Davis said that based on demographic changes in the population, NGF noticed that declining rounds were more pronounced strictly within the city limits rather than outside. Using that observation, Mr. Kelly questioned why NGF would be recommending improving the golf facilities within the city if there is a greater demand for golf in the rural areas. Mr. Davis said they should not ignore what is happening in the market place. Mr. Kelly asked if the city built a third golf course of superior quality and charged a lot more money, whether the cannibalization of the rounds of the existing courses would be minimized and whether other golfers would be enticed to play. Mr. Davis said that when a new facility opens in his area, he tends to play it on an observational basis; however, he said the question is whether the Minutes - Regular Council Meeting July 16, 2002 - Page 10 number of new rounds would be sufficient to warrant the development of a new facility. Mr. Kelly said the report does not deal with tourism golf at all nor does it take into account local observations of ethnicity and the propensity to play golf. He also asked how the city can maximize the number of new rounds and Mr. Davis replied that that is not clear because that is not his level of expertise. As part of the second phase of the report, he said he would be willing to develop NGF's analysis of the likely financial results of implementing the changes. Council Member Noyola asked Mr. Davis if he talked to any golfers, and he replied that that was not part of the study He said it is possible to survey community members, which NGF has done in other cities. Mr. Noyola said local golfers travel to San Antonio and the Rio Grande Valley to play because their courses are less expensive than Corpus Christi's courses. Mr. Dan Buder, a staff member at Oso Golf Course, responded to specific questions about costs per round. Mr. Noyola said that at one time there were 70,000 rounds per year at each golf course and he said he agrees with the need to maintain the existing courses with improved irrigation and other actions. Mr. Scott referred to a document that says there were 10,539 new jobs in the last two years as well as a report from the Economic Development Corporation regarding dramatic increases in new jobs. He said he does not agree with Mr. Davis' statement that Corpus Christi has a low -growth economy. Responding to a question from Mr. Scott, Mr. Davis said the number of rounds at a particular golf course is relative. He said the Council has the option of taking into account different alternatives, such as improving the existing courses alone or with the addition of nine holes. He added that the city should view the golf courses as businesses that should sustain themselves. In reply to Council Member Kinnison, Mr. Davis said the study specifically looks at what NGF believes the cash flow would be of a proposed course based on the results of the existing market place --it does not take into account what would potentially occur at Oso or Lozano in their existing state. Council Member Garrett said that golfers have told him over the last few years that they want the city to maintain and upgrade the city's existing facilities as well as build an additional nine holes at Oso. He said he has heard the same debate for years and he said maybe this Council or a future Council will accept the fact that the city cannot accommodate a new golf course and they need to take care of what they have. Mr. Garrett asked Mr. Davis about the statement in the report that Corpus Christi MSA's civilian labor force has actually decreased since 1995. Mr. Davis said he obtained that information from the U.S. Bureau of Labor Statistics. He said he thinks Mr. Scott has raised a valid issue that the local economy has showed signs of recovery in the recent past. Mayor Neal asked what is staffs recommendation. Mr. Whitworth said if it is the direction of the Council, they will accept the recommendations of the National Golf Foundation and bring back to the Council the action items that would be necessary to develop a prioritized list of capital improvements and their associated costs for both Oso and Lozano golf courses. Mayor Neal said they should include the nine additional holes and he asked about the time frame. Mr. Whitworth said it should take a couple of months. Mr. Noyola asked if they could look at nine additional holes at Lozano, and Mr. Whitworth said staff will look at the feasibility of both courses. The Mayor said there appeared to be consensus of the Council to proceed. Minutes - Regular Council Meeting July 16, 2002 - Page 11 Mayor Neal referred to Item 20, and a motion was made, seconded and passed to open the public hearing on the following zoning case: 20. Case No, 0602-01. Deavary Durrill Foundation. Inc.: A change of zoning from an "I-2" Light Industrial District to a "B-4" General Business District on 0.826 acre out of 5.158 acres out of Tract 3 in the Deed from Texas Commerce Bank, N.A. to Deavary Durrill Foundation Inc., per Deed Volume 2151, Page 553, Deed Records of Nueces County, Texas, located 125 feet from the intersection of South Enterprize Parkway and Opportunity Drive. City Secretary Chapa said the Planning Commission and staff recommended approval of a "B-4" General Business District. No one appeared in opposition to the zoning change. Mr. Scott made a motion to close the public hearing, seconded by Mr. Colmenero, and passed. Mr. Chapa polled the Council for their votes as follows: ORDINANCE NO. 024948 Amending the Zoning Ordinance upon application by Deavary Durrill Foundation Inc. by changing the zoning map in reference to 0.826 acres out of 5.158 acres described as Tract 3 in the deed from Texas Commerce Bank, N.A. to Deavary Durrill Foundation Inc., Volume 2151, Page 553, Deed Records, Nueces County, Texas, from "I-2" Light Industrial District to "B-4" General 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 as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal referred to Item 21, and a motion was made, seconded and passed to open the public hearing on proposed assessments for improvements to Cliff Maus Road, Phase 1A from F.M. 665 to just south of Rockford Road. He called for public comments. Mr. Carl Vern, Director of the Corpus Christi Early Childhood Development Center, 1641 Cliff Maus Dr., questioned the length of the extension of Cliff Maus. Mr. Kevin Stowers, Assistant Director of Engineering Services, said the project extends approximately 400 feet past the intersection with Rockford Drive. He then met with Mr. Vern to answer his specific questions. City Secretary Chapa polled the Council for their votes as follows: 21.b. ORDINANCE NO. 024949 Ordinance closing the public hearing on proposed assessments for improvements to the following highway in Corpus Christi, Nueces County, Texas: Cliff Maus Road, Phase 1 A from F.M. 665 (Old Brownsville Road) to just south of Rockford Road; imposing assessments totaling $38,189.68 against property abutting the improvements, affected Minutes - Regular Council Meeting July 1.6, 2002 - Page 12 railways, and property and railway owners; fixing corresponding liens on property and charges against property owners; providing for subsequent adjustment of assessment amounts and the corresponding liens and charges based on as -built conditions; specifying assessment payment terms and lien enforcement measures. An emergency was declared and the foregoing ordinance passed as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 21.c. M2002-212 Motion authorizing the City Manager or his designee to execute a construction contract in the amount of $685,062 with Hunt Contractors Ltd. of Edna, Texas, for the Cliff Maus Road, Phase 1A from F.M. 665 to just south of Rockford Road. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Council Member Longoria pointed out that this project was authorized by the voters during the Bond 2000 program and it will greatly benefit that area. * * * * * * * * * * * * * Mayor Neal referred to Item 22, and a motion was made, seconded and passed to open the public hearing regarding the issue of the Texas Municipal Retirement System (TMRS) providing eligibility for retirement with 20 years of service credits. Ms. Cynthia Garcia, Director of Human Resources, explained that in February 2001 the city entered into a collective bargaining agreement with the Corpus Christi Police Officers Association in which the city agreed to change the retirement requirement for TMRS retirement from 25 years of employment to 20 years of employment effective August 1, 2002. She said the proposed ordinance accomplishes that. The cost of the provision is .16% of payroll effective August 1, 2002; however, the ordinance does not have the effect of increasing the retirement amounts. It only allows employees who have 20 years of employment the option to retire. There was no public comment. Responding to Council Member Longoria, Ms. Garcia said that if an employee retires at 20 years rather than 25 years, he or she will receive a reduced benefit. She added that an employee is mandated to contribute 5% of his salary beginning his first day of employment and every year the Council approves the updated service credit that takes care of the inflation factor. City Manager Garcia said both the employee and the city contribute to the retirement plan. He added that very few employees take advantage of the 20 -year retirement because of the large drop in benefits that occurs; however, it does benefit employees who join municipal employment at a later age. Mayor Neal commented that the city has an excellent retirement plan and Ms. Garcia agreed. Mr. Garrett made a motion to close the public hearing, seconded by Mr. Colmenero, and passed. City Secretary Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting July 16, 2002 - Page 13 22.b. FIRST READING ORDINANCE Ordinance adopting the ordinance affecting participation of city employees in the Texas Municipal Retirement System granting the additional rights authorized by Section 854.202 (g) of Title 8, Texas Government Code, as amended, to provide eligibility for retirement with 20 years of service credit at any age; prescribing the effective date for the ordinance; and allowing for a public hearing. The foregoing ordinance passed on first reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." ************* Mayor Neal opened discussion on Item 23, employee classification and compensation system. Ms. Garcia explained that on May 14, 2002, staff brought the Council a proposal that would allow for the implementation of the new compensation and classification plan that was developed in conjunction with the Waters Consulting Group. She said the proposal called for placing the cost for the new plan in the budget at an initial implementation level of 90% of the job market, and this ordinance does that. Ms. Garcia added that the ordinance also accomplishes the following: codifies the city's compensation and classification plan, eliminating outdated provisions and removing language of an administrative nature; changes the employment status of 62 positions by moving them from the classified service; grants employees two additional personal leave days in lieu of more costly holidays; grants increased vacation accrual to employees with more than 10 years of service with the city; and grants three bereavement days for employees who have a death in their immediate family. Council Member Longoria commented on the far-reaching implications of this action. Responding to questions from Mr. Longoria, Ms. Garcia said that implementation of the future phases of the compensation plan will be brought to the Council for their approval. Mr. Longoria said that any increases in the ad valorem and sales tax revenues will help fund the future phases and budget management will be very important. Ms. Garcia said that at the beginning of the fiscal year, employees will receive five personal days that they can use upon approval by their supervisors; however, they will not be able to sell them back and whatever personal days are left at the end of the fiscal year will be lost. Mr. Longoria requested information about the types of holidays offered by other entities. Ms. Garcia said the city currently provides employees with seven holidays and, since the city needs to continue to provide services throughout the year, many employees have to work on holidays. She said those employees receive time -and -a -half and an extra day; consequently, holidays are more costly. She said personal days allow employees to use their time as they see fit. Mayor Neal said that trend is being followed by many businesses. Mr. Longoria also asked about the section in the plan regarding "Leaves with Pay Deemed Beneficial to City Operations." City Manager Garcia said that some organizations have service Minutes - Regular Council Meeting July 16, 2002 - Page 14 requirements associated with special leaves of absence with pay; however, the city of Corpus Christi does not. Mr. Garcia said that provision is designed to encourage employees to attend specialized schools in higher education. Mr. Longoria commended staff and the Waters Group for their efforts. Council Member Garrett asked how the lowest -paid employees will benefit. Ms. Ruth Ann Edwards, of the Waters Consulting Group, said that a significant number of non-exempt employees (those who are eligible for overtime) will be impacted. She said that about 800 employees will be brought up to what is considered to be the minimum of the new pay ranges. She said during the first year of implementation, the employees will be brought up to 90% of market at a cost of $1.7 million. Council Member Noyola asked how future Councils will be obligated to the next four implementation phases. Mr. Longoria said the key to making this work is to put it in the city's budgets for the next four years. Council Member Kelly said he would like to see employees who qualify for the city's housing programs to receive the necessary information and counseling. Council Member Colmenero said this action repeals several previous ordinances, which sets this plan into action. Council Member Scott noted that in his first year on the Council in 1999, the city had to implement a reduction in force and froze salaries, which illustrates how far the city has come. Ms. Garcia pointed out that this action implements new internal equity structures that will be in place for many years. Mayor Neal stated that a few months ago the Council Chambers was full of people who were very critical of the actions that had been taken on behalf of city employees and a lot of things were said about the Council's and senior staff's alleged lack of concern for city employees. He said the Council is implementing this plan without threats and despite those comments. He said he is counting on future Councils to continue with this program. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 23. FIRST READING ORDINANCE Ordinance amending the Code of Ordinances by adopting a new Article III, Employee Classification and Compensation System of the Corpus Christi Code of Ordinances; repealing Sections 39-1, Rules and Regulations Governing Employment of City Employees Generally; and 39-2, Classified Service and Exemptions; repealing Section 39-20, Modification of Group Hospitalization Plan of the City of Corpus Christi Code of Ordinances; repealing Ordinances 17728 approved by Council on July 27, 1983, as amended by Ordinance 18595 on August 13, 1985; repealing Ordinance 021706 approved by Council on July 27, 1993; repealing Ordinance 3658, Adoption and Administration of the Position Classification Plan for All Offices and Positions in the Classified Service, as amended; repealing Ordinance 8127, Administration of Compensation Plan for All Positions in the City Service, as amended; repealing all other ordinances and rules or parts of ordinances and rules in conflict with this ordinance. The foregoing ordinance passed on first reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Minutes - Regular Council Meeting July 16, 2002 - Page 15 Mayor Neal opened discussion on Items 24, 25, 26, 27 and 28, all of which support the proposed FY 2002-03 operating budget. Mr. Mark McDaniel, Director of Management and Budget, said the Council received four budget presentations covering various departments, funds and issues. The Mayor called for public comment on Items 24-28. Mr. J.E. O'Brien, 4130 Pompano, said he was opposed to Item 24 because he questions the need for increasing the city's utility rates. He said that last year the combined utility department had a net income of almost $18 million and it was almost $25 million the preceding year. He questioned how much money the city has to continue to make on the utilities that hurt the poor people the most. Ms. Becky Lopez, Executive Officer for the Builders Association/Corpus Christi Area, said they represent about 215 home builders, land developers and others. She said the members are concerned about the proposed increase in building fees of 5% across the board (building permit and electrical, plumbing and mechanical permits). She said while there has not been an increase since 1999, they are concerned with a lack of staffing in the city's building division, which causes delays in the home building industry. She said they are recommending that the effective date of the increase be December 31, 2002 so the association can convey to their clients the increase in building permits. Mr. Craig LeBlanc, Southern Cross Ambulance, said he agrees with some of the proposed amendments but he disagrees with the fee structure, which he said would increase their rates by 600% to 800%. He said all of the local private ambulance services are available to the Corpus Christi Fire Department at no cost to the city. Fire ChiefJ.J. Adame said the present fee structure has not been revised since 1985. Mr. John Murray, EMS Director, said the ordinance requires local private ambulances to be available to assist the city if needed as part of their permit. In return, the ambulance companies have the opportunity to bill anyone who is transported through that service. He added that as long as the companies keep accurate records, if they assist city crews during natural disasters, the city will submit requests through any federal reimbursement programs that are available to them. Mr. Donald Thompson, with Elite Ambulance Service, said he also disagrees with the proposed fee structure. He said private ambulances may be needed more often as tourist attractions and populations continue to grow. Council Member Scott referred to Item 28 regarding development fees. Mr. Art Sosa, Acting Director of Development Services, said that during the focus group stage, the participants were asked if they would pay for enhanced services and the responses were overwhelmingly affirmative. He said the 5% across-the-board fee increases will result in accelerated plan review procedures and a series of technology enhancements, which he explained. Mr. Scott requested a list of the improvements and the time line. He also asked about the status of the One -Stop Development Center. Mr. Sosa said it should be open by the end of 2002. Responding to Council Member Chesney, Mr. Sosa said they are trying to solve the problem of delays in the plan review process by hiring a plans examiner who is also a building inspector. Mr. Chesney expressed concerned about the city raising fees in several departments, particularly since Minutes - Regular Council Meeting July 16, 2002 - Page 16 the Builders Association, for example, has raised concerns as well. He asked how much revenue will be generated by the increased fees and Mr. Sosa said it will be approximately $70,000. A discussion ensued about the cost of hiring an additional plans examiner. Mr. Garcia said that to do what the Builders Association is requesting would require a much greater fee increase than staff is proposing. He said staff believes they can improve the permitting process without adding personnel. Mr. Chesney asked Ms. Lopez to respond to staff's comments. She said the Builders Association is asking that the fees be implemented on December 31, 2002 rather than August 1, 2002 in order for staff to have time to implement the changes. Mr. Chesney also asked the ambulance fees. Mr. Murray reiterated that the fee structure has not been amended since 1985 and staff is attempting to align the ambulance permitting ordinance with the existing taxicab ordinance. Currently, the application fee for a taxicab is $200 and for an ambulance service it is $100. In addition, staff is proposing increasing the ambulance permitting fee from $25 to $100 per vehicle because of the extensive inspection process that is involved. He said they are also proposing to cap the road use fee to apply to five vehicles. Mr. LeBlanc said there are other fees the ambulance companies currently do not pay that they will be required to if the fee structure is amended. He said Corpus Christi has a large indigent population and it is difficult to collect from many of their clients. He added that the Texas Department of Health already inspects their vehicles and he questioned whether the city is attempting to take over the private ambulance services. Mr. McDaniel said this service to be provided by the Fire Department is in lieu of the service that is currently being provided by the City -County Health Department. He said the revenues from the increased fees are anticipated to be about $13,000, which is justified by the inspections alone. Responding to Council Member Noyola, Mr. Murray said the city utilizes the private ambulance services on a back-up basis about 10 times during the year. Mr. Garcia said that private ambulances are primarily in business to provide patient transportation principally between hospitals and nursing homes. Additional discussion ensued. Responding to Council Member Kelly, Mr. Murray said if a patient has Medicare or private insurance, there is a greater opportunity that a private ambulance company will collect for any services they provide on behalf of the city under the new fee structure. However, if it is a self -pay situation, their chances of collecting are slim—the same as it is for the city. Chief Adame said staff can provide the Council with additional information about this issue. Ms. Connie Page, an independent EMS consultant for Gemini Ambulance, said that permits were originally designed to provide information to cities about the types of ambulances operating there. She noted that private companies provide services that cities are not able to and she asked the Council to not overregulate them. Council Member Garrett said the city has seven ambulances and he asked if the city performs any non -emergency transfers. Mr. Murray said they do not; however, some patients do not strictly meet the criteria of an emergency. Minutes - Regular Council Meeting July 16, 2002 - Page 17 Council Member Kinnison asked about the proposed purchased gas adjustment. Ms. Lee Ann Dumbauld, Finance Director, said that item has not been included in the past and it is more of a technical clarification of the way it should be calculated. Ms. Debbie Marroquin, Gas Superintendent, said the reservation fee involved a three-year expense of about $742,000 per year. She said it previously had been listed as a capital item. Mr. Kinnison also asked about the wastewater winter averaging. Ms. Martha Messer, a city accountant, said the administrative rate change will still be revenue neutral. Mr. Kinnison said he is still questioning the proposed 5% utility rate increases because many of the large capital projects are outside the rate increase and are pass-through items. Mr. McDaniel pointed out that the recent heavy rains will have an impact on the city's water revenues, which is another reason for the rate increases. He said when staff brings the Council the capital budget around November, they will review the models. Mr. Kinnison noted that there actually more decreases in the recreational fees as opposed to increases. He said the proposed fee structure for private ambulances is a cost -recovery program rather than a revenue enhancement; Mr. McDaniel concurred. Council Member Longoria requested the information that staff previously provided regarding the utility capital projects. In response to Mr. Longoria, Mr. McDaniel said staff is recommending deleting the provision which disallows recalculating winter averages in years in which water conservation measures are in effect. City Secretary Chapa polled the Council for their votes as follows: 24. FIRST READING ORDINANCE Ordinance amending the Code of Ordinances, City of Corpus Christi, Chapter 55, Utilities, regarding water, gas and wastewater rates; providing an effective date. The foregoing ordinance passed on first reading as follows: Neal, Colmenero, Garrett, Kelly, Kinnison, and Scott voting "Aye"; Chesney, Longoria and Noyola voting "No." 25. RESOLUTION NO. 024950 Resolution authorizing park, recreation, cultural and leisure time activities rental fee and recreational fee adjustments; adding new rental fees and recreational fees for fiscal year 2002-2003; providing for an effective date. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 26. FIRST READING ORDINANCE Ordinance amending the Code of Ordinances, Chapter 57, Vehicles for Hire, Article IV, Ambulance Service, to change the designation of the permit officer and the responsible department, update a statutory reference, adjust fees, establish street use and reinspection fees, clarify insurance requirements and application information, and repeal provisions Minutes - Regular Council Meeting July 16, 2002 - Page 18 regarding delivery of a body; providing for an effective date. The foregoing ordinance passed on first reading as follows: Neal, Colmenero, Garrett, Kinnison, Longoria, and Scott voting "Aye"; Chesney, Kelly and Noyola voting "No." 27. FIRST READING ORDINANCE Ordinance adopting a monthly forty -cent local exchange access line service fee to provide for the purchase, installation and maintenance expenses, including some required personnel, of 9-1-1 service in the City of Corpus Christi, Texas. The foregoing ordinance passed on first reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Mr. Chesney made a motion to amend Item 28 to delay implementation of the fee increases to December 31, 2002. Mayor Neal said the Council would need to know the budget implications and Mr. McDaniel said it would be about $30,000. The motion died for lack of a second. Mr. Chapa polled the Council for their votes on Item 28 as follows: 28. FIRST READING ORDINANCE Ordinance amending the Code of Ordinances, City of Corpus Christi, Chapter 13, Buildings; Construction and Related Operations; Housing and Housing Premises Standards, to increase the technical construction code fee schedules; providing for an effective date of September 1, 2002. The foregoing ordinance passed on first reading by the following vote: Neal, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney voting "No." Mayor Neal called for a brief recess. Upon reconvening, Mr. Kinnison reiterated that a key element of the budget is that the fee calculations are based on a cost -recovery system aimed at specific users of those services, which results in the fees being revenue -neutral. * * * * * * * * * * * * * Mayor Neal called for petitions from the audience. Mr. Jack Gordy, 4118 Bray Dr., said last week he discussed the location of the proposed baseball stadium and he urged the Council to get a copy of what Council Member Scott referred to as an Attorney General's opinion. Mr. Gordy said he requested a copy of that document and was told by the Legal Department that there was none, but he did receive another document which does not address the issue of location of the stadium. Mr. Gordy also disputed a comment by the Mayor last week regarding whether or not Mr. Gordy had said he had voted for the Mayor. Mayor Neal asked City Attorney Bray to explain a letter he provided to the Council last week Minutes - Regular Council Meeting July 16, 2002 - Page 19 dated June 21, 2002 from Mr. Jim Thomassen, Assistant Attorney General and Chief of the Public Finance Division, that was sent to Mr. Jeffrey Leuschel of McCall, Parkhurst & Horton, bond counsel. Mr. Bray said that letter addressed the issue of whether a 4B tax could have a term limit on it. He said that is different from the issue of whether a ballot proposition can provide a choice on the stadium location, which is not allowed because the Texas Election Code states how a proposition can be placed on the ballot --either "for" or "against." In addition, the Secretary of State has issued an opinion on that issue and cited court cases to support it. Responding to additional questions from Mayor Neal, Mr. Bray said Mr. Thomassen stated in his letter that with respect to 4A elections, "the period for which the tax is voted can be limited as provided in that section, but it is our position that more than one specific project cannot be placed on the ballot. However, we would agree that in the ordinance calling the election, the city may covenant to use the proceeds from the tax for designated purposes or projects." Also, with respect to 4B elections, Mr. Thomassen wrote, "it is our position that the election proposition may contain more than one specific project, but it may not limit the period in which the tax is collected." Mayor Neal apologized to Mr. Gordy for misunderstanding Mr. Thomassen's letter. Mr. Phil Rosenstein referred to the Council's rules of decorum, saying that they state "these rules are not meant to restrain a citizen's First Amendment rights." He said that statement should be included in the agenda along with another part of the rules of decorum. He said citizens have the right to disagree and accuse someone when they think that person is wrong and the words "embarrass and accuse" should be taken out of the paragraph on the agenda. Mayor Neal asked that Mr. Rosenstein be provided with a copy of the statement he read at the beginning of the Council meeting. Mr. Danny Noyola, 4410 Acushnet, said he appreciated the Mayor's comments regarding citizens' freedom of speech. Mr. Noyola also referred to the November 2000 election which proposed three-eighths of a cent for economic development initiatives (which failed) and one-eighth for the Crime Control and Prevention District (which passed). He said there is a portion of the Section 4B statute that says if the bonds are paid in full, the tax will cease. Consequently, he said he believes it is misleading to state that a 4B tax is perpetual. Mr. Bray replied that that question was less than clear at the time but the Attorney General's Office has evolved in their views on the issue and now states, as described by Mr. Thomassen, that a 4B election proposition may not limit the period in which the tax is collected. r*****arrsrr* Mayor Neal opened discussion on Item 29, adoption of the FY 2002-03 operating budget. Mr. McDaniel said there were three issues the Council raised following the public hearing last week. The first was a proposed amendment made by Council Member Kinnison to fund enhanced marketing efforts by the Convention and Visitors Bureau (CVB) in lieu of paying the Columbus ships exhibit debt. He said staff was providing a new financial statement of the Hotel Occupancy Tax Fund which adjusts the revenue projections. Consequently, as requested, staff shifted and made available $250,000 in cash in lieu of the way the budget was earlier proposed. City Manager Garcia said staff was continuing to recommend that the city relieve the CVB Minutes - Regular Council Meeting July 16, 2002 - Page 20 of the debt obligation for the Columbus ships, which would free the ships from a wide range of administrative entanglements. He said that would allow the city to attempt to engage in a permanent solution for the ships' future by including them in the Landry's redevelopment proposal. Mr. McDaniel said the second budget issue was funding for the "Festival of the Arts" program in the amount of $15,000. He said if the Council elects to do that, it will be taken out of the unreserved fund balance of the Hotel Occupancy Tax Fund and put into the arts subgrant program. Responding to Council Member Chesney, Mr. Garcia said staff was not recommending that adjustment but they were responding to the Council's directive. In reply to Council Member Colmenero, Mr. McDaniel said the fund balance for the Hotel Occupancy Tax Fund is also the fund balance for the Visitors and Facilities Fund, which is similar to the arrangement between the General Fund and the Ambulance Fund because there is so much interplay between the two funds. He said the city is making headway in trying to improve the Hotel Occupancy Tax Fund balance. Council Member Scott said he thinks it is better to let the Arts and Cultural Commission (ACC) decide how to use the additional funding rather than making the "Festival of the Arts" marketing program a separate budget line item. He said he supports the increased funding. Mr. McDaniel also referred to the library funding issue. He stated that he believes there are sufficient funds to pay for what is currently authorized this year for staffing and there is no reduction in library staff for next year. He added that there may be some last-minute budget adjustments once the city receives the certified tax roll next week. If there are positive changes, he suggested that additional funding be provided for library books. In response to Mr. Colmenero, Mr. McDaniel said the Council can amend the budget at any time during the year, although it is not done very often. Mr. Kinnison referred to the "Festival of the Arts" funding. Ms. Linda Avila, chairperson of the Projects Committee that is working on that festival, said they are trying to develop a marketing plan with the idea of purchasing billboards and seeking free advertising in other cities. She said the festival's mission is to draw tourists and enhance the quality of life for citizens. She said the committee consists of marketing people who are not members of the ACC, although she is. Mr. Kinnison encouraged the committee members to work with the CVB on their marketing plan. There were no comments from the audience. Mr. Scott made a motion, seconded by Mr. Chesney, to amend Item 29 to reduce the unreserved fund balance of the Hotel Occupancy Tax Fund by $15,000 and to put that money in the arts subgrant program. The motion passed unanimously. Mr. Kinnison made a motion to further amend Item 29 by amending the Hotel Occupancy Tax Fund in accordance with the items on page 420 of the agenda packet, which is an increase to the current year Hotel Occupancy Tax. Mr. Chesney seconded the motion and it passed unanimously. City Secretary Chapa polled the Council for their votes as follows: 29. FIRST READING ORDINANCE Ordinance adopting the City of Corpus Christi budget for the ensuing fiscal year beginning Minutes - Regular Council Meeting July 16, 2002 - Page 21 August 1, 2002, to be filed with the County Clerk; appropriating monies as provided in said budget. The foregoing ordinance passed on first reading, as amended, by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 30, airport shuttle service. City Secretary Chapa stated that Council Member Noyola would be abstaining on this item. There were no comments from the audience. Mr. Chapa polled the Council for their votes as follows: 30.a. ORDINANCE NO. 024951 Ordinance authorizing the City Manager or his designee to execute a shuttle service concession lease agreement with Jangee Inc. of Corpus Christi, Texas, for the operation of shuttle service concession at the Corpus Christi International Airport in consideration of payment of six percent of the concessionaire's gross monthly revenues for a term of up to twelve months. An emergency was declared and the foregoing ordinance passed: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, and Longoria voting "Aye"; Noyola abstaining; Scott absent. 30.b. FIRST READING ORDINANCE Ordinance authorizing the City Manager or his designee to execute a shuttle service concession lease agreement with Jangee Inc. of Corpus Christi, Texas, for the operation of a shuttle service concession at the Corpus Christi International Airport in consideration of payment of six percent of the concessionaire's gross monthly revenues for a term of 36 months with the option to extend three additional one-year periods by mutual agreement of the concessionaire and the City of Corpus Christi. The foregoing ordinance passed on first reading as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, and Longoria voting "Aye"; Noyola abstaining; Scott absent. ************* Mayor Neal opened discussion on Item 31, ordering a special election on November 5, 2002. Deputy City Manager Noe said this is the second reading of the ordinance and he referred to a technical amendment proposed by City Attorney Bray which would add the words "this provision governing" to Section 8 of the ordinance (as shown at the top of page 441 of the agenda packet). Council Member Kinnison made a motion to amend Item 31 by adding the following language: "If Proposition 1B is adopted, the City Council commits to use the entire $500,000 for affordable housing so long as there are projects for which that amount can reasonably be used." Minutes - Regular Council Meeting July 16, 2002 - Page 22 Council Member Scott seconded Mr. Kinnison's motion to amend. Mr. Kinnison said he believes his amendment clarifies the Council's intent and provides a legislative history, while at the same time providing flexibility as to what the ballot language is so future Councils and the board can get the best utilization of the funds. Responding to Mayor Neal, Mr. Bray asked if Mr. Kinnison's proposed amendment restricts the 4A board's allocation of any of the funds in the proposed one-eighth cent sales tax. Mr. Bray said it is binding in that if there are projects available of an affordable housing nature that equal to $500,000 each year, the board would be required to spend that amount for projects. He said it is binding on the board and the Council to that effect. In reply to Council Member Noyola, Mr. Bray said that because of the proposition itself, it would be capped at $500,000 per year. Mr. Scott said he believes Mr. Kinnison's motion is valid because it clearly identifies the Council's intent to use the funds for those projects. Responding to Council Member Colmenero, Mr. Noe explained that the proposed ballot language does not limit the expenditure to the current affordable housing programs. Mayor Neal called for comments from the audience on Mr. Kinnison's motion to amend. Mr. Danny Noyola said he thinks the motion should be amended to state $1 million for affordable housing because it is needed without placing a cap and taking into account inflation. He said this is a matter of fairness. Mr. Butch Escobedo said he thinks the Economic Development Corporation's (EDC) program is vague and he said there should be time tables on when the funds will be expended. Mayor Neal pointed out that the EDC would not be allocating these funds. He said the 4A board will be taking recommendations from that organization and many others on what programs should receive the sales tax funds. Mr. Escobedo said he does not believe the 4A board is diverse enough. Mayor Neal called for a voice vote on Mr. Kinnison's motion to amend and it passed unanimously. Mr. Bray explained his proposed amendment to clarify Section 8 of the ordinance. Mr. Kelly made a motion to amend Item 31 as stated by Mr. Bray, seconded by Mr. Colmenero, and passed unanimously. Mayor Neal called for public comment on Item 31 as amended. Mr. Bill Martin reiterated the security concerns he had raised last week regarding placing the baseball stadium next to the Port of Corpus Christi. He cited several news reports about the vulnerability of the security of ports around the country. Mr. Abel Alonzo thanked Mr. Kinnison for his amendment and said he hopes at the end of this process they can heal their wounds. He said no matter what is decided, he will support what he believes in and he criticized the process that was followed, which he said was not inclusive. Mr. Butch Escobedo said he supports economic development but he is opposed to locating the baseball park on the northside. Minutes - Regular Council Meeting July 16, 2002 - Page 23 Mr. Danny Noyola reiterated that he thinks the affordable housing amount should be $1 million; the cap is unfair; three minutes to speak is unfair; and the Attorney General's opinion can be disputed. Mr. Alex Harris commended the Council for the time they have spent on debating this issue. He said the citizens of Corpus Christi are very proud of the Council and the business community supports them. He commented that the proposed location of the stadium is the right one. Mr. Tom Niskala, President of the Chamber of Commerce, also thanked the Council for their time and commitment to this project. He said the public should be allowed to decide on this issue. Mr. Danny Noyola Jr. commented on a previous location issue on the 1997 ballot and how people in lower-income groups will be opposed to additional taxes. Mr. Ron Kitchens, EDC President, said this one-eighth of a cent sales tax is about bringing high-quality jobs to the community and removing bathers to them. Ms. Kendra Fowler said that as a recent graduate of Texas A&M University -Corpus Christi, she is encouraged by these issues. She said she supports the port location of the stadium. Mr. Rogelio Morales said he is opposed to the proposed stadium location, saying that other areas of the city should benefit from development. He said the cap on affordable housing is unfair. Mr. Kelly made a motion to amend Item 31 to change the order of the ballot language so that the renewal of the Crime Control District (CCD) becomes Proposition No. 1 and new and expanded business enterprises becomes Proposition No. 2. Mr. Noyola seconded Mr. Kelly's motion to amend. Mayor Neal called for a hand vote on the motion and it failed to pass by a 4-4 vote (Longoria absent). Mr. Kinnison asked for a roll call vote instead and Mayor Neal concurred. Mr. Chapa polled the Council on Mr. Kelly's motion and it passed as follows: Colmenero, Garrett, Kelly, Kinnison, and Noyola voting "Aye"; Neal, Chesney, Longoria and Scott voting "No." Mr. Scott said he thinks that changing the ballot order will greatly impact the viability of the economic development proposition. He said if it had been the first ballot item in the 2000 election, it would have already passed. He also said that not developing the port property out of fear of terrorism will mean that the terrorists have succeeded. He said in 1997 the Ryans were not involved in the baseball stadium issue and he commented on the positive ethics of the 4A board members. Mr. Colmenero said the proposed stadium location is not downtown but rather next to the port. Mr. Hector Vallejo, Acting Director of Housing and Community Development, responded to a question from Mr. Colmenero regarding the city's housing programs. Mr. Colmenero discussed why he supports both the CCD and the economic development programs Mr. Kinnison emphasized the importance of the CCD and the implications of what will happen if it is not renewed. He said while the focus of the debate has been the baseball stadium, he said they need to remember that this issue is about bringing meaningful jobs to Corpus Christi. He Minutes - Regular Council Meeting July 16, 2002 - Page 24 said he hopes everyone can come together to support these propositions. Mr. Chesney said that by separating out the propositions, voters are being given a choice. He said he is perplexed that people are debating the location of the stadium because the developers have determined that that is the most viable place. He commented on the amount of time that has been spent on this issue and he reiterated the importance of renewing the CCD. Mr. Noyola said he agrees that the CCD is important, adding that he does not think it will hurt the other projects. He said that initially he was opposed to the stadium location and people have the choice of supporting it or opposing it. He said they should work together to do what is right for Corpus Christi and respect the voters' wishes. Mr. Longoria said ships that come to Corpus Christi are thoroughly inspected. He said that in the year 2000, there were 649 permits pulled for new residential housing and in 2001 there were 876 permits pulled. He said the city's unemployment is at the lowest level ever and he reiterated that this issue is about better jobs. Mayor Neal said that a few months ago almost all the Council members went to Moody High School to hear the presentations of the Moody Civic -Minded Students. He said he hopes the Council can look to the democratic process and get these issues passed by the citizens, which is imperative. He said while there will be detractors, he intends to see that the community continues to move forward. Mr. Chapa polled the Council for their votes on Item 31 as amended: 31. ORDINANCE NO. 024952 Ordinance ordering a special election to be held on November 5, 2002, in the City of Corpus Christi on the question of whether to authorize a corporation governed by Section 4A of Article 5190.6, Vernon's Texas Civil Statutes to use a sales and use tax of one-eighth of one percent for projects authorized by said statute; and on the question of whether to continue the Corpus Christi Crime Control and Prevention District; providing for procedures for holding such election; providing for notice of election and publication thereof; providing for establishment of branch early polling places; designating polling place locations; authorizing a joint election with Nueces County; and enacting provisions incident and relating to the subject and purpose of this ordinance. The foregoing ordinance passed on second reading, as amended, by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal called for the City Manager's report. Mr. Garcia asked Assistant City Manager Ron Massey and Water Superintendent Ed Garafia to update the Council on the flooding issue and they responded to Council members' questions. Mr. Garcia said he handed out to the members of the Municipal Court subcommittee a survey that was done at the Council's request concerning judges' salaries. Mr. Garrett pointed out that Mr. Garcia had left the Juvenile Court judge off and Minutes - Regular Council Meeting July 16, 2002 - Page 25 Mr. Garcia said that was an oversight. The City Manager said the last Council meeting of the fiscal year is on July 23rd and the next meeting will be on August 20th beginning at noon with a joint meeting with the Crime Control District board. Mayor Neal asked about the possibility of providing closed captioning of the Council meetings for the hearing impaired. City Secretary Chapa said that when staff investigated that issue in the past, it was very costly. The Mayor asked staff to look into it again and he called for Council reports. Mr. Chesney thanked the Department of Public Safety for allowing the Council members to view the flooded areas from the air and he extended his sympathies to those who have experienced losses from the floods. He announced a Friends of the Park organizational meeting on August 13th and an upcoming town hall meeting in District 1 in September. Mr. Chesney requested a follow-up on questions raised by Mr. Irving Dietz and Mr. Javier Barrera, and he thanked the City Secretary's Office for their efforts on his behalf. Mr. Colmenero thanked Assistant City Manager Margie Rose for the information regarding the housing programs and he requested additional information about the Rincon Bayou diversion project and an analysis of the Wesley Seale Dam repairs. Mr. Kelly asked about the Lamar Elementary area clean-up project. Mr. Massey said Solid Waste crews will be picking up brush and debris this week. Mr. Kelly said he wants to look into how to maximize communication between directed patrol officers and other city departments. Mr. Scott commented on the salinity levels in Nueces Bay and he asked if the city's senior and recreational centers have high-speed internet access. Mr. Whitworth said the senior centers do not yet have internet access. There being no further business to come before the Council, Mayor Neal adjourned the Council meeting at 7:52 p.m. on July 16, 2002. * * * * * * * * * * * * *