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.
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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
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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.
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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.
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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.
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