Loading...
HomeMy WebLinkAboutMinutes City Council - 12/16/1985 - JointMINUTES CITY OF CORPUS CHRISTI, TEXAS SPECIAL COUNCIL MEETING JOINT MEETING WITH PLANNING COMMISSION CONVENTION CENTER - ROOM 225 DECEMBER 16, 1985 7:00 P.M. Present: Mayor Luther Jones Mayor Pro Tem Dr. Jack Best Council Members: David Berlanga, Sr. Leo Guerrero Joe McComb Frank Mendez Bill Pruet Mary Pat Slavik Linda Strong City Manager Edward A. City Attorney J. Bruce City Secretary Armando Martin Aycock Chapa Planning Commissioners Javier Chapa, Chairman Arnold Moreno, Vice Chairman Ricardo Elizondo Joe Garcia Nora Garcia William Locke Mary Rhodes ABSENT: Michael Clayborne Lucy McCracken Mayor Luther Jones called the meeting to order at the Bayfront Plaza Convention Center. City Secretary Armando 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 Jones then recognized City Manager Edward A. Martin to make a presentation on the Proposed Capital Improvement Program. City Manager Martin began his presentation by stating that he would like for the City Council to approve the Capital Improvement Program about 90 days from this date. He explained that the program is designed to cover the next five years and the City Staff is recommending to the City Council a Capital Improvement Program in the amount of $103,795,000 with the results that over $240,000,000 will be available for capital improvements through various other sources of funds. MICROFILMED nut es opecial Council Meeting December 16, 1985 Page 2 Mr. Martin continued by explaining the procedure followed in preparing the program through input from Boards and Commissions as well as current concerns of the City Council Members. He informed the Council that the Steering Committee was chaired by Assistant City Manager James K. Lontos, and stated that the goal of the Steering Committee was to identify projects that meet one or more one of the following three criteria: (1) improve existing facilities, (2) improve and enhance the City's quality of life; and (3) prepare the City for future growth. Mr. Martin reminded the Council that one of their goals was to address an aggressive Capital Improvement Program in accordance with the recommendations of Corpus Christi '90. He reiterated that combining the Proposed Bond Program with various other funds would generate approximately $240,000,000. He stated that other members of the Steering Committee were Ernest M. Briones, Ezequiel P. Elizondo, Juan Garza, Bill Hennings, Edward A. Martin, Leah P. Olivarri, Gerald Smith, W. Thomas Utter and Larry H. Wenger. City Manager Martin called the Council's attention to Page 3 of the Capital Improvements book which contains the Project Summary and includes the following categories in the program: A. STREETS $ 45,810,000 B. DRAINAGE 7,620,000 C. WASTEWATER 15,740,000 D. AIRPORT 6,495,000 E. PARKS 12,175,000 F. PUBLIC FACILITIES 15,955,000 TOTAL: $103,795,000 Mr. Martin then referred to a map which showed the location in the City of the proposed projects. Mr. Martin suggested that a Workshop Meeting be conducted by the Council to study the proposed projects, noting that it would be possible to discuss this during their regular Workshop Meetings on Tuesday. He briefly explained the various street, drainage and wastewater programs and their correlation with each other. He then described the airport improvements and the importance of the runway rehabilitation as well as other improvements to the Airport. City Manager Martin then addressed payment of the bonds, explaining that in order to reach their conclusions on financing, the Staff had to make a number of assumptions. He noted that the following assumptions were made by the Staff, emphasizing the fact that the City Council should carefully review and concur with these assumptions prior to the election: (1) the present tax for debt service of .15913 per $100 of appraised value; (2) the taxable appraised values autes .,pecial Council Meeting December 16, 1985 Page 3 are projected to grow at an average of 10% per year for at least the next six years. If the increase is greater, the amount of sales can be increased or the period of time shortened and if the growth rate is lower, the program might have to be lengthened; (3) maintenance of the current discount and exemption system; (4) with the exception of Wastewater, Airport, Power, Marina and Tourist and Convention fund, an increase of 2% per year in other revenues used to pay debt service; (5) interest costs in future bond sales of 9%; (6) an average life on all new bonds of twelve years or less; (7) maintenance of a bond reserve level of 85% to 90%; (8) continued utilization of interest from construction funds on 1982 authorized bonds to maintain targeted levels in bond reserve; (9) interest earnings on new bond sales are utilized to offset increases in project costs and changes in the projects over the term of the program; (10) contributions to debt service by the Water and Gas funds are projected to continue to help offset existing wastewater debt service; and (11) bond sales must be carefully planned, timed and structured during the program to match projects with revenue availability. City Manager Martin explained that with the assumptions outlined above, the following conclusions can be reached: (1) A $75,000,000 Capital Improvement Program over a five-year period can be financed with no increase in the debt service tax rate, no utilization of tax Reinvestment Zone funds and no increase in wastewater rates for future wastewater debt service. (2) The amount can be increased by approximately $5,000,000 for a total of $80,000,000 if Tax Reinvestment Zone funds are utilized for eligible projects. (3) If wastewater rates are increased approximately 10% to partially cover the costs of new wastewater debt, then the program can be increased by an additional $10,000,000 for a total of $90,000,000. (4) An additional 1C tax increase would allow the program to be increased by approximately $6,000,000, so an increase of 2.3Q would allow a $14,000,000 increase in the program for a total of $104,000,000. Mr. Martin then referred to Page 158 in the book which explains how the increase would affect homeowners in various categories. City Manager Martin then referred to Page 14, entitled Summary of Actions Recommended, which outlines the various actions, public hearings, etc., which need to be considered, culminating in bond referendum in May of 1986. City Manager Martin stated that he would like to recommend that only one proposition for the entire amount be listed on the ballot because of the relationship between the various types of projects. He explained that he is recommending that the election be conducted in May, even though it cannot be in the first Saturday in May because of the Primary Elections but expressed the opinion that this would give the Council ample time to study the proposed program and make the public aware of the program. Mayor Jones expressed appreciation to the Staff and complimented them on a superb job. Various Council Members made remarks in regard to the bond program. Several expressed the opinion that the program needs to be explained, not sold, and this must be done by the Council Members themselves. Others stated that they felt that this is a very exciting, aggressive program. flutes opecial Council Meeting December 16, 1985 Page 4 Council Member McComb suggested that public hearings be conducted in each of the five districts to better inform all of the public of the program. Mayor Jones then called for comments from the members of the Planning Commission. Chairman Javier Chapa pointed out that the Planning Commission Members do not have to answer to any constituents but they can look at the Bond Program with an unbiased viewpoint and assured the Council that they are anxious to examine the bond program. Commission Member Mary Rhodes inquired about actions that will be taken ahead of time to make people aware of what is included in the Bond Program, and City Manager Martin explained that copies of the Proposed Capital Improvements Program will be placed in all of the libraries and will be available in the City Secretary's Office. He stated that in advance of public hearings in the various districts, he would like to suggest that copies be placed in public buildings and libraries within the district. He also explained that leaflets of a few pages could be prepared to briefly describe the program and pointed out that the public access television station could be utilized to provide information on the bond program. Various other Planning Commission Members made comments and Mr. William Locke expressed the opinion that the Planning Commission should prepare a Comprehensive Plan at the same time. Mayor Jones called for comments from the audience. Mr. Frank Wagner explained to City Manager Martin that a number of people in the City do not have Cable T.V. and he felt that providing information on the public access channel would be discriminatory. He expressed the opinion that the information on the bond program should be provided by some other means. Mayor Jones assured him that a number of other methods would be utilized to convey the information to the citizens, and City Manager Martin concurred, stating that that would be only one method of conveying the information. City Manager Martin then introduced Ms. Grace McNett, Administrative Assistant to Assistant City Manager Lontos, and complimented her on coordinating the Steering Committee work. A motion was made by Council Member Guerrero to adopt the Summary of Actions Recommended. The motion was seconded by Council Member Strong and passed unanimously. nutes especial Council Meeting December 16, 1985 Page 5 A motion was made by Council Member McComb that the meeting be adjourned; seconded by Council Member Guerrero; and passed unanimously at 8:03 p.m., December 16, 1985. DZ/rr