Loading...
HomeMy WebLinkAboutMinutes City Council - 09/26/2006I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Regular Meeting of the Corpus Christi City Council of September 26. 2006, which were approved by the City Council on October I ). 2006. WITNESSETH MY HAND AND SEAL, on this the l Oth day of October, 2006. Armando Chapa City Secretary SEAL PRESENT Mayor Henry Garrett Mayor Pro Tem Jesse Noyola Council Members: Brent Chesney Melody Cooper Jerry Garcia Bill Kelly Rex Kinnison John Marez Mark Scott MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting September 26, 2006 - 10:00 a.m. City Staff: City Manager George K. Noe City Attorney Mary Kay Fischer City Secretary Armando Chapa Mayor Garrett called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Councilmember Scott and the Pledge of Allegiance to the United States flag was led by Councilmember Noyola. Mayor Garrett called for approval of the minutes of the regular Council meeting of September 19, 2006. A motion was made and passed to approve the minutes as presented. .****** * ** Mayor Garrett called for consideration of the consent agenda (Items 2 - 16). City Secretary Chapa announced that Councilmember Marez was abstaining from the vote and discussion on Item 5. Council members requested that Item 11 be pulled for individual consideration. There were no comments from the public. A motion was made and passed to approve Items 2 through 16, constituting the consent agenda, except for Item '11, which was pulled for individual consideration. City Secretary Chapa polled the Council for their votes as follows: 2. MOTION NO. 2006-311 Motion approving the lease purchase of approximately 5,124 curbside collection containers from Schaefer Systems International, of Charlotte, North Carolina for the total amount of $262,912.44. The award is based on the cooperative purchasing agreement with the Houston Galveston Area Council (H -GAC). The containers will be used in the City's automated collection program. Funds for the lease purchase of the curbside collection containers will be provided through the City's lease/purchase financing program. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison. Marez, Noyola, and Scott, voting "Aye". Minutes — Regular Counci Meeting September 26. 2006 — Page 2 3. MOTION NO. 2006-312 Motion approving a supply agreement with Vulcan Construction Materials, LP, of San Antonio, Texas, for approximately 7,150 tons of pre -coated aggregate and approximately 3,250 tons of cold mix -cold laid asphalt in accordance with Bid Invitation No. BI -0196-06 based on low bid and only bid for an estimated semi-annual expenditure of $355,698. The term of the contract will be for six months with an option to extend for up to five additional six month periods subject to the approval of the supplier and the City Manager or his designee. Funds have been budgeted by Street and the Utility Departments in FY 2006-2007. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". 4. MOTION NO. 2006-313 Motion approving the purchase of four (4) riding mowers from John Deere Company, of Cary, North Carolina in accordance with the State's Cooperative Purchasing Program, for a total amount of $45,699.44. The riding mowers will be used by the Parks and Recreation Department. Funding is available from the FY 2006-2007 Capital Outlay Budget in the Maintenance Services Fund. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". 5.a. RESOLUTION NO. 026998 Resolution authorizing the City Manager or his designee to accept a grant from the Department of State Health Services in the amount of $660,000 for the Women, Infants, and Children Program for FY2007, based on an $11.00 reimbursement for each participant served. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Noyola, and Scott, voting "Aye"; Marez abstained. 5.b. ORDINANCE NO. 026999 Ordinance appropriating a grant from the Department of State Health Services in the amount of $660,000 in the No. 1066 Health Grants Fund for the Women, Infants, and Children Program for FY2007, based on an $11.00 reimbursement for each participant served. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Noyola, and Scott, voting "Aye Marez abstained. 6.a. RESOLUTION NO, 027000 Resolution authorizing the City Manager or his designee to accept a $56,119 grant awarded by the Corporation for National and Community Service for the Retired and Senior Volunteer Program The foregoing resolution was passed and approved with the following vote: Garrett, Chesney. Cooper, Garcia, Kelly, Kinnison, Noyola, Marez, and Scott, voting "Aye". Minutes — Regular Counci: Meeting September 26. 2006 — Page 3 6.b. ORDINANCE NO. 027001 Ordinance appropriating a $56,119 grant from the Corporation for National and Community Service in the No. 1067 Parks and Recreation Grants Fund for the Retired and Senior Volunteer Program An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye" 7.a. RESOLUTION NO. 027002 Resolution authorizing the City Manager or his designee to accept a $275,761 grant awarded by the Corporation for National and Community Service for the Senior Companion Program. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney. Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". 7.b. ORDINANCE NO. 027003 Ordinance appropriating a $275,761 grant from the Corporation for National and Community Service in the No 1067 Parks and Recreation Grants Fund for the Senior Companion Program An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye' 8. MOTION NO. 2006-314 Motion authorizing the City Manager or his designee to execute a contract with Aloe Tile Works, Inc. of Corpus Christi, Texas in the amount of $14,000 as part of the Percent for Art Program associated with the Northwest Branch Library Expansion Project for the design, fabrication, installation, and purchase of free -form art tile murals installed over a contractor installed field tile. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison. Marez, Noyola, and Scott, voting "Aye". 9.a. RESOLUTION NO. 027004 Resolution authorizing the City Manager or his designee to execute the First Amendment to the Interlocal Agreement for Use of School Buildings during Hurricane Emergency with Corpus Christi Independent School District. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly.. Kinnison, Marez, Noyola, and Scott, voting "Aye". Minutes — Regular Council Meeting September 26. 2006 — Page 4 9.b. RESOLUTION NO. 027005 Resolution authorizing the City Manager or his designee to execute the First Amendment to the Interlocal Agreement for Food Services during Hurricane Emergency with Corpus Christi Independent School District. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney. Cooper, Garcia, Kelly. Kinnison, Marez, Noyola, and Scott, voting "Aye". 9.c. RESOLUTION NO. 027006 Resolution authorizing the City Manager or his designee to execute an Interlocal Cooperation Agreement with Corpus Christi Independent School District for use of School Buses during Hurricane Emergency. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney. Cooper, Garcia, Kelly. Kinnison, Marez, Noyola, and Scott, voting "Aye". 10.a. MOTION NO. 2006-315 Motion authorizing the City Manager or his designee to reallocate FY2000 Community Development Block Grant (CDBG) funds from the Westside Business Association project to the FY2000 CDBG South Texas Institute for the Arts project for the expansion of activities for the Antonio E. Garcia Education Center. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". 1O.b. MOTION NO. 2006-316 Motion authorizing the City Manager or his designee to execute an agreement with Naismith Engineering, Inc., of Corpus Christi, Texas for $13,536 to develop a Phase II Environmental Site Assessment for the City of Corpus Christi/South Texas Institute for the Arts project. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". 10.c. MOTION NO. 2006-317 Motion authorizing the City Manager or his designee to execute all required documents to purchase property located at 2027 Agnes Street for the South Texas Institute for the Arts project for the expansion of activities for the Antonio E. Garcia Education Center. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". Minutes - Regular Counci Meeting September 26. 2006 - Page 5 12. MOTION NO. 2006-319 Motion authorizing the City Manager or his designee to execute Amendment No. 1 to the Contract for Professional Services with Maverick Engineering, Inc., of Corpus Christi, Texas in the amount of $6,410 for a total restated fee of $31,387 for the Furman Avenue Development/Spohn Shoreline Sanitary Sewer Relief Line Project. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". 13. MOTION NO. 2006-320 Motion authorizing the City Manager or his designee to execute an agreement to renew the contract with Rabalais I&E Constructors, of Corpus Christi, Texas for the O. N. Stevens Water Treatment Plant On -Going Generator Testing and Maintenance FY 2006-2007 in the amount of $97,888, for an additional one-year period (by exercising the one-year renewal option under the contract with Rabalais I&E Constructors approved by Council on August 23, 2005 (Motion No. 2005-268)). The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". 14. MOTION NO. 2006-321 Motion authorizing the City Manager or his designee to execute a construction contract with Haeber Roofing Company, of Corpus Christi, Texas in the amount of $47,776 for the Fire Station No. 8 Roof Replacement 2006 Project. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". 15. MOTION NO. 2006-322 Motion authorizing the City Manager or his designee to execute a construction contract with Barcom Commercial, Inc., of Corpus Christi, Texas in the amount of $75,894 for Fire Station #2 Concrete Driveway Repairs 2006 for the base bid and additive alternate #1. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". 16. ORDINANCE NO. 027007 Authorizing the City Manager or his designee to execute a ten year lease agreement with Corpus Christi Education Foundation ("Lessee") for use of Mary Carroll House at Heritage Park in consideration of Lessee securing all labor to fully restore the house and landscape the grounds; and Lessee maintaining the premises and improvements; and Lessee using its best efforts to develop and maintain a building trades educational program to maintain the exterior of the structures at Heritage Park; providing for one five (5) year renewal option. (First Reading 8/29/06) The foregoing ordinance was passed and approved on its second reading with the following vote: Garrett. Chesney, Cooper. Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". Minutes — Regular Councii Meeting September 26, 2006 — Page 6 Mayor Garrett opened discussion on Item 11 regarding a short-term maintenance service agreement with Tiburon, Incorporated. In response to Councilmember Kinnison's question, Assistant City Manager Oscar Martinez stated that the contract was being extended to cover the last four months of the year; after that time, he said the city was transitioning to a new provider, Integraph, for the services. Mr Kinnison noted that the contract extension was costing the city $8,000 a month. He questioned whether the city used the services frequently enough to warrant a monthly contract. He asked if staff had considered contracting services on a per hour basis instead. Mr. Martinez replied that the MIS department had analyzed their usage, and determined that a monthly maintenance services contract was needed. City Manager Noe added that the software in question was used fora critical function, namely to run the Computer Aided Dispatch system for 911 calls, so staff wanted to ensure its proper maintenance. There were no questions from the audience. City Secretary Chapa polled the Council for their votes as follows: 11. MOTION NO. 2006-318 Motion authorizing the City Manager or his designee to extend the maintenance service agreement with Tiburon, Inc., of Fremont, California for four additional months for $33,652. Included in the maintenance agreement are the Tiburon modules for Records Management, Computer Aided Dispatch, Mobile Data, Automated Vehicle Locator and Video Imaging. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". Mayor Garrett referred to Item 17.a., and a motion was made, seconded, and passed to open the public hearing on the following zoning text amendment: 17.a. Public hearing to consider amending the Zoning Ordinance by deleting Section 27-2.03 of Article 27 "Supplementary Height, Area and Bulk Requirements," regarding windmills, wind energy conversion systems, and wind -driven generators; amending Article 3 "Definitions," to include Section 3-1.67.3 relating to wind energy systems; and amending Article 29 "Board of Adjustment.' to include Section 29-3.13 providing regulations for wind energy systems. Acting Director of Development Services Michael Gunning reported that the city had recently received a number of applications expressing interest in constructing wind energy systems within the city limits. one in particular from a company proposing to open a retail wind energy outlet at Saratoga and Airline. He said that the city's current Zoning Ordinance, however, doesn't regulate these systems beyond height restrictions determined by the zoning district. He added that the current regulations did allow the Zoning Board of Adjustment to grant a variance to height restrictions, which could potentially impact adjacent or abutting residential or commercial areas. Consequently, he said on September 12, the Council approved a 30 -day moratorium on the installation or permitting of any wind generation systems within the city limits, allowing staff the time to research the issue. He said staff coordinated a public hearing and proposed zoning text amendment at the September 6 Planning Commission meeting; upon review, the Commission recommended the proposed text amendment for the Council's approval. Mr Gunning stated that staff wanted to address concerns regarding the aesthetics, noise, and the safety issues associated with the various types of wind energy systems, including windmills, towers, commercial wind energy conversion systems, and particularly wind turbine generators. He displayed photos of various systems. While acknowledging that city staff did not have expertise on the issue. he said nonetheless that staff had reviewed several model ordinances for wind energy Minutes — Regular Counci Meeting September 26 2006 — Page 7 upon which they based the proposed zoning text amendment. He said staff completed a survey of four Texas cities as follows: El Paso, San Antonio, Fort Worth, and Galveston. Based on a review of these ordinances, Mr. Gunning said staff identified the main issues regarding wind energy systems as follows. setbacks from property lines, structures, roads, and riverbeds; safety standards for the tower installation; electrical equipment and wiring; proper insulation, maintenance, and aesthetics of towers: and turbine designs, noise, and interference with electromatic telecommunications Mr Gunning discussed the proposed text amendment in detail. First, he said staff recommended the deletion of Section 27.2.03 of the current Zoning Ordinance, which briefly but inadequately discussed wind energy system standards. Second, he said staff recommended the addition of two definitions in Article 3, Definitions of the Zoning Ordinance, in relation to wind energy systems and height of the total system. Third, he said staff was recommending that wind energy systems be regulated through the Board of Adjustment as a special exception. He said the addition of Section 29-3.13, Wind Energy Systems, would provide the minimum criteria to be metas follows: (1) wind energy systems shall be located on a parcel that is at least one and a half (1 1/2) acres in size; (2) total system height shall not exceed 110 feet, measured at the top of the blade; (3) setback of 150 percent of the height of the total system (including blade length) from all property lines; (4) minimum distance between the ground and any protruding blades shall be 25 feet, as measured at the lowest point of the arc of the blades: (5) if more than one energy system is located on a site, there must be 110 foot separation between each. measured at the base of the structure; (6) wind energy systems shall not exceed 60 decibels, as measured at the closest property line; (7) minimum survival wind speed for the wind energy system must 140 mph; (8) roof -top wind generators shall be prohibited. and (9) wind energy system will not substantially affect adversely the uses of adjacent and neighboring properties. In response to Councilmember Marez's question, Mr. Gunning stated that the company currently applying for a wind energy permit planned to open a retail wind energy store. He said the wind generating system was one component of their operations, and they were definitely considering rooftop -mounted wind systems. He noted that the proposed zoning text amendment prohibited rooftop -mounted w nd systems. He stated that no permit applications for residential use had been submitted at this time. Mr. Garcia spoke in support of increasing the minimum lot size from 1 1/2 acres to 2 acres to better protect neighboring properties. Mr. Gunning stated that he was not opposed to making the minimum standard more stringent Mr Garcia asked if the city had the flexibility to change the standard if it was found to be too stringent. Mr. Gunning replied affirmatively. Mr. Garcia made a motion to increase the minimum lot size from 1 1/2 acres to 2 acres. The motion died for lack of a second Mr. Kelly expressed concern that the 60 decibel minimum threshold was inadequate. Mr. Gunning stated that the wind turbine noise was a constant hum when it was turning, but he was uncertain about the sound level. City Manager Noe interjected that the 60 decibel sound level was equivalent to normal conversation sounds; a refrigerator hum was 40 decibels. Since the Board of Adjustment was required to review all applications, he said they could impose more stringent guidelines depending on the situation. He said the Board of Adjustment approval process included notification of surrounding property owners. Mr. Kelly also asked about rooftop -mounted turbines, stating that from the pictures staff had displayed, he did not consider them to be too obtrusive. Mr. Gunning replied that staff had recommended prohibiting rooftop turbines because they were relatively unfamiliar with the technology, and also of the potential hazard during a hurricane. He said staff could revisit the issue, however, in the future. in response to Mr. Noyola's question, Mr. Gunning replied that one permit application had Minutes - Regular Councii Meeting September 26, 2006 - Page 8 been filed at this time; additionally, four or five individuals had expressed interest in erecting wind turbines in their neighborhoods. Mr. Noyola stated that he had understood the permit application was for a commercial windfarm that would generate power for the city or the region. He was opposed to projects that would only generate power for certain individuals. City Manager Noe replied that staff's intent today was to deal with individual uses of wind energy inside the city limits, as opposed to any large-scale operation. Mr. Noyola was intrigued by the idea of wind power as an alternative energy source because it could potentially lower the city's utility rates. City Manager Noe replied that the city was part of the South Texas Aggregate Project (STAP), which was investigating the possibility of investing in or buying power from a commercial windfarm. He said staff would report on the option as part of an overall strategy to acquire power in the future. Mr Kelly asked if the proposed zoning text amendment applied to the city's ETJ. Mr. Gunning replied negativelysaying the proposed ordinance applied only within the city limits. There were no comments from the public. A motion was made, seconded, and passed to close the public hearing. City Secretary Chapa polled the Council for their votes as follows: 17.b. ORDINANCE NO. 027008 Ordinance amending the Zoning Ordinance by deleting Section 27-2.03 of Article 27 -Supplementary Height, Area and Bulk Requirements," regarding windmills, wind energy conversion systems, and wind -driven generators; amending Article 3 "Definitions," to include Section 3-1.67.3 relating to wind energy systems; and amending Article 29 "Board of Adjustment " to include Section 29-3.13 providing regulations for wind energy systems; repealing Ordinance No. 026986 establishing a 30 -day moratorium on the issuance of permits for the erection or construction of wind energy systems; providing a repealer clause; providing a penalty; providing for an effective date. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye" Mayor Garrett referred to Item 22, a presentation on Bayfest 2006. Ms. Janice Cubellis and Me. Dana Madry, Bayfest General Co -Chairmen, stated that this year, Bayfest was celebrating its 30"' anniversary. She stated that Bayfest's goal was to provide a venue for non -profits to raise monies, as well as provide entertainment for the community. She said the festival would be held Friday, September 29 through Sunday. October Ms. Madry spoke regarding Bayfest's successful partnership with the R.T.A. for shuttle service to the main festival entrance. She noted that there were three entrances to Bayfest as follows: Shoreline Blvd., the main entrance, and the American Bank Center. She encouraged people to use the American Bank Center entrance because it was underutilized. Mr Cubellis spoke regarding the admission fees for the event, which varied depending on the age group. She also announced that Bayfest, in conjunction with the city's Senior Community Services division, would be holding Senior Day on Saturday, Sept. 30, from 11:00 a.m. to 3:00 p.m., American Bank Center. She said senior citizens 55 years and older would be admitted free of charge on this day Ms. Cubellis also announced that individuals who turned 30 years of age on Sept. 30 would also be admitted free of charge between 12:00 p.m. and 6:00 p.m. Ms. Madry spoke regarding Bayfest's partnership with H -E -B to sell pre -sale, all -you -can -ride Minutes - Regular Council Meeting September 26, 2006 - Page 9 camival wristbands for $15 She said the offer runs through September 28. Ms. Cubellis also provided information on other planned events. She invited the Mayor and Council to attend a ribbon -cutting ceremony on Friday, September 30, at 5:30 p.m., Bayfest Front Gate. Mayor Garrett opened discussion on Item 18 regarding a professional services contract to evaluate Consumer Directed Health Care (CDHC) options. Director of Human Resources Cynthia Garcia explained that the city's self-funded medical insurance costs continued to rise, following the national trends. In an attempt to reduce the cost increases, Ms. Garcia stated that staff's recommendation was to enter into a contract with Mercer Oliver Wyman and Mercer Health and Benefits, who would review current programs and provide suggestions for cost management opportunities that better reflected employee usage, including Consumer Directed Health Care programs. She said the firm would create a five-year cost projection, and would also quantify the impact of possible program changes. Ms. Garcia stated tnat the original proposal developed with Mercer consisted of two parts: 1) an analysis to determine whether a Consumer Directed Health Plan (CDHP), in conjunction with either a Health Reimbursement Account (HRA) or a Health Savings Account (HSA), was viable for the city; and 2) if determined to be viable, assistance with the development and implementation of the plan, She said if a CDHP was determined to be inappropriate for the city, then Mercer would analyze the current plans and provide recommendations for program changes to reduce city's insurance rate increases, while maintaining affordable costs for city employees. Upon further negotiations, she said the project was split such that the second phase would only be contracted if a CDHP/HSA/HRA was found to be a viable option. Additionally, she said in the first phase, city staff had agreed to conduct the required focus group discussions themselves with assistance from Mercer. resulting in a cost savings of $15,000. Finally, Ms. Garcia introduced Ms. Tracy Watts and Ms. Julie Peacock with Mercer. who were available to answer questions. Mr. Noyola asked if the city was seeking employee input on the proposed CHDP. Ms. Garcia replied that the city was holding city employee focus groups, and would also meet with union representatives to obtain their input. She said staff planned to bring a proposal forward in early Axil. Mr. Noyola emphasized the importance of educating city employees regarding their health insurance options so they enroll for essential insurance coverage only. Mr. Kinnison askew what criteria Mercer would use to determine whether a CDHP was viable for the city Ms. Tracy Watts with Mercer replied that they would work with staff and focus groups to familiarize them with the pros and cons of a CDHP, and to seek their input. Based on the information received, she said Mercer would develop a plan design that would suit the city's employee population. She said the design would be tested with city employees to determine whether it was a good fit. Mr Kinnison stated that Mercer's timeline to complete their evaluation was April 30, 2007. He asked how Mercerwouid recommend implementing the CDHP if it was determined to be a viable program. Ms. Watts replied that by that point, they would have quantified the program design and developed specific features. She stated, for example, that the city had changed their prescription drug benefits during the last open enrollment period; she said Mercer would evaluate the changes to determine their effectiveness. She said based on the evaluation, staff would prepare a Request for Proposal (RFP) to solicit bids from the marketplace on a specific program design. Mr Kinnison asked if staff anticipated that the new plan would be implemented by August 1, Minutes — Regular Counci Meeting September 26, 2006 — Page 10 2007. Ms. Garcia replied that staff's goals were twofold. First, she said staff could implement a number of short-term changes beginning in FY 2007-08. Second, she said the city's contract with Humana would expire on July 31, 2008; thus, she said staff planned to use Mercer's evaluation to issue an RFP in October 2007 to solicit bids for a specific program design. Consequently, she said the earliest date the city could implement a CDHP was August 1, 2008. Mr Kinnison asked if Mercer was affiliated with any insurance providers. Ms. Watts responded negatively, saying that their company only provided brokerage and consulting services. Mr Noyola asked staff to look into lowering prescription drug co -pays; he mentioned low-cost generic drug benefit programs offered by Target and Wal-Mart in other States. He also asked staff to took into lowering insurance premiums for retirees. Mr. Marez asked if the proposed contract would evaluate the city's insurance coverage with Humana. Ms. Garcia clarified that the city had a self-funded insurance plan; Humana served solely as the city's TPA and network. She said Mercer was being contracted to evaluate the city's self- funded insurance plan, including a cost analysis and survey of the employee population, and then develop a series of recommendations. Mr Marez stated that he had been told by local insurers that the city was actually paying more by contracting with Humana. City Manager Noe replied that the city had saved a significant amount by contracting with Humana, consistently coming in below actuarial cost estimates. Mr. Marez asked for more information on the HRAs and HSAs. Ms. Watts explained that the Health Reimbursement Account (HRA) could only be employer -funded; the Health Savings Account (I -18A) could be employer -funded or employee -funded. In addition, she said the HSA offered a triple -tax advantage, meaning that contributions into the account were not taxed upon deposit, drew interest on a tax-free basis, and were tax-free when withdrawn for a health-related expense. There were no comments from the public. City Secretary Chapa polled the Council for their votes as follows: 18. MOTION NO. 2006-323 Motion authorizing the City Manager or his designee to enter into a contract with Mercer Oliver Wyman and Mercer Health and Benefits in the amount of $95,000 for professional services on the preliminary evaluation of Consumer Directed Health Care (CDHC) combined with the viability of a Health Savings Account -based (HSA) or a Health Reimbursement Account (HRA) Consumer Directed Health Plan (CDHP). Recommendations regarding changes to the existing health plans will be provided in the event CDHP is found not to be a viable option for the City. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly. Kinnison. Marez, Noyola, and Scott, voting "Aye"; Cooper was absent. Mayor Garrett opened discussion on Item 19 regarding an amendment to the Master Channel 27 Drainage Project construction contract. City Engineer Angel Escobar reported that the amendment provided for additional design work now required for Cimarron Boulevard Phase 1, which would alleviate flooding problems in the area. He said the initiation of the Cimarron project and continued development in the city's south side resulted in a reassessment of the drainage outfall capacity in that area, culminating in the proposed amendment. There were no comments from the public. City Secretary Chapa polled the Council for their votes as follows: Minutes — Regular Counci Meeting September 26, 2006 — Page 11 19. MOTION NO. 2006-324 Motion authorizing the City Manager or his designee to execute Amendment No. 5 to the Contract for Professional Services with Maverick Engineering, Inc., of Corpus Christi, Texas n the amount of $1 143,024 for the Master Channel 27 Drainage Project. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Marez, Noyola, and Scott, voting "Aye"; Kinnison was absent. Mayor Garrett opened discussion on Item 20 regarding the issuance and sale of up to $95 million in Utility System Revenue Refunding and Improvements Bonds. Director of Financial Services Cindy O'Brien stated that the city had been using a Commercial Paper Program as an interim financing tool for approved utility system capital projects, but it was now time to issue the bonds. In addition, she said the city had the opportunity to refund approximately $5 to $10 million worth of existing bonds if interest rates hold, resulting in a possible cost savings. Ms. O'Brien also stated that the city must appoint a financing team to facilitate the bond sale. She said staff was recommending the following appointments: M. E. Allison as Financial Advisor; Morgan Stanley as Senior Manager; Morgan Keegan, SAMCO Capital Markets, Inc., and Southwest Securities as Co -Managers; and McCall. Parkhurst, and Horton as Bond Counsel. Mr. Noyola asked what role the Co -Managers play in the bond sale process. Mr. Mark Seale with M.E. Allison & Co. responded that the Co -Managers work with the Senior Underwriter on selling the bonds. He said in a Targe issue such as this, it was prudent to spread the liability among more than one firm. In addition. he said if the market started to fluctuate during the day for pricing, the firms would normally step in and underwrite a portion of unsold bonds, potentially up to 20 percent. Thus, he said it was advantageous to have a number of firms involved in this type of situation. There were no comments from the public. City Secretary Chapa polled the Council for their votes as follows: 20.a. ORDINANCE NO. 027009 Ordinance authorizing the issuance and sale of City of Corpus Christi, Texas Utility System Revenue Refunding and Improvement Bonds, Series 2006, in an aggregate principal amount not to exceed $95,000,000. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye" 20.b. MOTION NO. 2006-325 Motion authorizing the appointment of M. E. Allison as Financial Advisor; Morgan Stanley as Senior Manager; Morgan Keegan, SAMCO Capital Markets, Inc., and Southwest Securities as Co -Managers; and McCall, Parkhurst, and Horton as Bond Counsel, for City of Corpus Christi, Texas Utility System Revenue Refunding and Improvement Bonds, Series 2006. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison.. Marez, Noyola, and Scott, voting "Aye". Regarding item 20. City Manager Noe commented that staff was considering issuing the bonds in a 30 -year increment as opposed to a 20 -year increment due to the current market's flat Minutes — Regular Counci, Meeting September 26, 2006 — Page 12 interest curve. He said short-term rates and long-term rates were not substantially different; thus, he said it may beneficial for the city to look at 30 -year rather than 20 -year amortization. Mayor Garrett opened discussion on Item 21, a first reading ordinance setting the election date and runoff dates for the 2007 City Council election. City Secretary Chapa stated that the City Council election was typically held the first Saturday in April, or in this case April 7, 2007; however, he said April 7 fell during Easter weekend this year. He noted that the City Charter authorized the Council to change the election date to an alternate Saturday in April, if the change was made at least 90 days prior to the election. Consequently, Mr. Chapa said that staff was recommending the Council move the April 2007 election date to April 14. In addition, City Secretary Chapa stated that election laws limit the selection of a date for a runoff election based on the canvassing date. Thus, he said if the canvassing of the votes was held during a Council meeting, the first available date to hold a runoff election would be May 19. He noted, however, that if the Council wished to hold the runoff election sooner, they could decide to hold a Council meeting on Sunday, April 22, to canvass the results, thereby moving the Council runoff election date to Ma,, 12. Mr Noyola spoke in support of canvassing the votes on Sunday, April 22 Mr Marez asked if April 14 was designated as Election Day, then when would the last day of early voting be held. City Secretary Chapa replied that Tuesday, April 10, would be the last early voting day before the April 14 election. Mr. Marez asked how the city scheduled early voting during the Holy Week prior to Easter Sunday. City Secretary Chapa replied that early voting would not be held on Easter Sunday, but it would be held during Holy Week. Mr. Marez made a motion to amend the ordinance to move the runoff election date from May 19 to May 12, 2007. seconded by Mr. Garcia, and passed. Councilmember Cooper asked if the change in election date affected the filing deadlines. City Secretary Chapa answered affirmatively, saying the calendar would be revised accordingly and made available to everyone. He said, for example, that the first day to file would now be Monday, January 15 2007 and the last day to file would be Monday, February 12. There were no comments from the public. City Secretary Chapa polled the Council for their votes as follows: 21. FIRST READING ORDINANCE Ordering a General Election to be held on April 14, 2007, in the City of Corpus Christi for the election of Mayor and eight Council Members; 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 the City Secretary to contract with the Nueces County Election Officer for equipment and supplies necessary to conduct the election, selection of May 4-912, 2007, as the Runoff election date, if one is necessary enacting provisions incident and relating to the subject and purpose of this ordinance. The foregoing ordinance was passed and approved on its first reading as amended with the following vote: Garrett, Chesney Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye'. Minutes — Regular C,ounch Meeting September 26, 2006 — Page 13 Mayor Garrett referred to Item 22, a presentation on the FY 2005-06 4th Quarter Budget report. Assistant Budget Director Eddie Houlihan stated that the information contained in the report represented unaudited fourth quarter results. He said staff attempted to account for and include outstanding transactions and anticipated adjustments based upon current information available. Mr Houlihan briefly discussed the status of the General Fund. Regarding revenues, Mr. Houlihan stated that the city received 103 percent of budgeted revenue, an excellent showing. He said this equated to approximately $5.1 million more revenues than projected, primarily due to increases in sales tax and Municipal Court revenues, and an adjustment to the Ambulance fund. Mr. Houlihan stated that sales tax receipts increased by 8.4 percent over the prior year. He also stated that the Solid Waste Services revenue was slightly below budget mostly due to an overbooking of revenue in FY 2005 He also mentioned that franchise fee revenues were $226,000 higher than budgeted. Regarding General fund expenditures, Mr. Houlihan stated that 99.36 percent of the budget was expended. He said the city had approximately $1,070,000 less than budgeted. He said the city used all but $50,000 of the $1 million budgeted for drag -up costs. He said the city was $600,000 over budget in street lighting power costs, consequently, staff was finalizing a contract to help lower costs in this area. Mr. Houlihan also reported that the unreserved fund balance was anticipated to grow by approximately $5 million. He then displayed and briefly discussed graphs depicting General Fund YTD revenues and expenditures. Mr. Houlihan briefly discussed the status of the Enterprise Funds, comprised of the Water, Wastewater, Gas, Airport, Golf, and Marina funds. He said the Water fund revenues increased due to the dry weather experienced for the first three quarters of the current fiscal year. Regarding Wastewater, he said the net of revenues over expenditures was about $700,000 more than budgeted, noting that the fund had a difficult year due to high fuel and power costs, and a number of major line failures. Regarding Gas, he said revenues were less than budgeted amounts, but the Gas department was able to control expenditures, resulting in a net gain for the year. He said the Airport fund saw a revenue decrease, reflecting the decline in Oil and Gas lease revenue, but noted that a new lease had been authorized.. Regarding the Golf fund, he said revenues were approximately $250,000 higher than budgeted and, notably, the unreserved fund balance was positive. Finally, he said the Marina fund revenues were under budget due to the loss of a major lessee and decrease in the number of shrimp boats. He said new docks were expected to be completed in December, which should result in increased revenues. Mr. Houlihan then displayed a nurnber of graphs depicting Enterprise fund revenues and expenditures. Mr. Houlihan briefly discussed the internal Service funds, which are budgeted allocations for services to internal customers. He said the Stores Fund revenue was less than the prior year, but the fund balance remained healthy. He said Maintenance Services had a challenging year due to the high cost of fuel and parts, but in spite of this, their Unreserved Fund Balance at year end was over $500,000. He said the MIS fund was almost $2 million under budget after considering encumberances, primarily because of the postponement of major lease purchases, contractual savings, and a disputed bill in the telephone service area. He said the Engineering fund had a very good year with ircreased revenues from CIP work and from work performed for internal departments. He said the Risk Management fund reflected lower than budgeted expenditures for health insurance, general liability, and workers' compensation. He then displayed a number of graphs depicting Internal Service fund revenues and expenditures. Mr. Houlihan briefly reviewed the Special Revenue funds, comprised of the Hotel Occupancy Tax, Reinvestment Zone No. 2. Development Services, Visitors Facilities, and Crime Control District funds. He said the Hotel Occupancy Tax fund had a great year, coming in $9.6 million or 107.71 of budget He said the Reinvestment Zone No. 2 fund also saw a $356,000 increase in revenues over Minutes — Regular Counci Meeting September 26. 2006 — Page 14 FY 2005, due to very favorable appraised values in the Packery Channel area. In the Development Services fund, he said revenues were strong, about $750,000 more than budgeted and $275,000 more than in FY 2005. Regarding the Visitors Facilities fund, he said the figures from SMG were estimates only. Finally, he said the Crime Control District revenues were approximately $138,000 more than expenditures after considering encumberances. He then displayed a number of graphs depicting Special Revenue fund revenues and expenditures. Mayor Garrett called for a brief recess to present proclamations. ****,xx**** Mayor Garrett called for petitions from the audience. Mr. Johnny French, 4417 Carlton, spoke regarding ADA access at the parking lot on the Packery Channel seawall. Mr. Allen Herkimer.; 715 S. Upper Broadway, spoke regarding the city's negotiations with TRT on their Coliseum redevelopment proposal. Mr Foster Edwards, 118 Alta Plaza, provided an update on the Convention and Visitors Bureau's new advertising campaign. Mr Abel Alonzo thanked the City Council and city staff for the favorable condition of the city's finances. Ms. Tara Hoelscher, 5318 River Oaks Drive, spoke regarding the Power of Pink breast cancer awareness event. Mayor Garrett announced the executive sessions, which were listed on the agenda as follows 24. Executive session under Texas Government Code Section 551.071 to receive legal advice regarding acquisition of real property for new Broadway Wastewater Treatment Plant, with possible discussion and action related thereto in open session. 25. Executive session under Texas Government Code Sections 551.071 and 551.087 regarding Earthlink negotiations regarding the City of Corpus Christi Citywide Integrated Wi-Fi Network, with possible discussion and action related thereto in open session. 26. Executive session under 551.074 of the Texas Government Code for deliberations regarding the evaluation of the City Manager, with possible discussion and action related thereto in open session. 27. Executive session under Texas Government Code Section 551.071 regarding Michael McCutchon v. City of Corpus Christi, Cause No. 06-5382-C in the 94th Judicial District Court of Nueces County. Texas., with possible discussion and action related thereto in open session. The Council went into executive session. Minutes — Regular Council Meeting September 26, 2006 — Page 15 Mayor Garrett called for the City Manager's report. City Manager Noe announced that the final class of the inaugura Citizens University would take place tomorrow evening between 6:00 p.m. and 8:30 p.m , Galvan House at Heritage Park. He said the Council had been asked to participate in a panel discussion at the class. He said the second Citizens University would begin in October, with three-hour classes from 6.00 p.m. to 9:00 p.m. on the fourth Wednesday of each month. He said the deadline to submit applications was quickly approaching. He said 30 citizens would be selected for the next class. He said individuals could contact the Public Information Office for more information City Manager Noe reported that the following items were scheduled for consideration at the October 10 Council meeting: two zoning cases; quarterly CVB report; appeal by Mr. Mark DiCarlo of a Cable Communications Commission's decision; and items related to contracting various services. Mayor Garrett asked for a status report or the Animal Control division. City Manager Noe replied that staff would schedule a report during a Council meeting. Mayor Garrett called for Council concerns and reports. Councilmember Marez stated that he was excited to finally see national coverage regarding the city's Wi-Fi program, referring to an article in Sunday's paper by a Washington D.C. ournalist. Councilmember Kelly reported that the Wood River Homeowners Association had contacted him regarding construction trucks that were tearing up Guadalupe Street. He asked who the responsible party was for the repairs. He also reported that a businessman on Leopard Street called him regarding street lights toward Corn Products Road. He said he would give City Engineer Escobar the gentleman's contact information. Mr. Kelly also said that he received no complaint calls regarding flooding in the Douglas subdivision during the latest storms. He said it appeared that the city's efforts to address flooding in those areas were being effective. He said, however, that he did receive a call about flooding on Crystal Lane, and said he would forward the citizen's contact information to staff Finally, Mr. Kelly said he had received persistent calls regarding houses that were purportedly under construction, but had been so for an extended time with no visible progress. He said the construction sites were attracting teenagers and others. He had two homes in particular that he wanted staff to look into. He asked how long individuals had to finish a home. City Manager Noe replied that staff would research the matter. He noted that the building permit was only good for a certain period of time, although it was an extended period. If the homes were being entered into illegally, however, he said the owners could be made to secure the site. Mr. Kelly noted that he had previously called about homes on Bakers Street and Big Cypress Bayou Street. He said if this was a persistent problem then the city might want to consider reducing the permit period. City Manager Noe replied that the city would need to balance the public interest with people trying to put "sweat equity" into their home by gradually building it. Mayor Garrett asked Director of Neighborhood Services Yvonne Haag to look into a problem with high weeds and unsafe conditions at the old Oak Park School site. He believed that the school district was looking into the problem, but asked staff to follow up on the matter. There being no further business to come before the Council, Mayor Garrett adjourned the Council meeting at 1:58 p rn. on September 26, 2006.