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HomeMy WebLinkAboutMinutes City Council - 06/22/1999I 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 June 22, 1999, which were approved by the City Council on June 29, 1999. WITNESSETH MY HAND AND SEAL, this 29th day of June, 1999. Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting June 22, 1999 12:05 p.m. PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Henry Garrett Council Members: Javier D. Colmenero Melody Cooper Dr. Arnold Gonzales* Rex A. Kinnison Betty Jean Longoria John Longoria* Mark Scott* City Staff: City Manager David R. Garcia City Attorney James R. Bray Jr. City Secretary Armando Chapa Mayor Neal called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Pastor Alan Sielk, Our Savior Hispanic Lutheran Church, following which the Pledge of Allegiance to the fiag of the United States was led by Council Member Cooper. 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 June 15, 1999. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * * * * Mayor Neal referred to the board and committee appointments on the day's agenda, and the following appointments were made: Census 2000 Complete Count Committee Lamont Taylor Vic Menard Ralph Goonan Chris Williams Manuel Ugues * * * * * * * * * * * * * Mayor Neal announced the four closed sessions, pursuant to Texas Government Code Section 551.071, regarding the following: L -Head baitstand lease agreement; City of Corpus Christi v. Advisory Commission on State Emergency Communications, No. 99-02304, 20151 District Court, Minutes Regular Council Meeting June 22, 1999 Page 2 Travis County, Texas; Ben Figueroa et al v. Jackie Martin, No. 99-2891-E, 148th District Court, Nueces County, Texas; and regarding legal issues associated with funding options for elevation of the JFK Causeway. The Council went into closed session. *Council Members Gonzales, Scott, and John Longoria arrived at the meeting. The Council returned from closed session. * * * * * * * * * * * * * Mayor Neal called for petitions from the audience. Mr. Ismael Martinez, 3742 Niagara, commented on the county's failed bond proposals. He said the Council should be more concerned about basic issues such as problems with the Mary Rhodes Pipeline, cleaning up the city, and repairing the Wesley Seale Dam. He added that they should work toward wiping out immoral behavior and promoting family values. Mr. R.F. Hasker, 1813 Wallace, said that while an article in the local newspaper stated that there were no new taxes or fees, he said several city departments are raising their fees, such as the parking fine fee and the increased utility fees. He said that generations to come will face debt and he criticized the county bond proposals. Mr. Frank Beck, 3227 Ocean Drive, spoke about the L -Head bait stand project. He said Ms. Jane Stubbs was most recently told that the reason the project was delayed was because city staff had changed and so had their concept of the project. He said Ms. Stubbs has held her course through three city managers, two Park and Recreation directors, and three marina superintendents. During that time Ms. Stubbs entered into a contract with the city for the new bait stand. Mr. Beck asked that the Council ensure that the contract is upheld for the benefit of the city. Ms. Jane Stubbs, 742 Kings Point Harbor, said she had written all of the Council members asking to be part of the meeting that day, but she did not receive a response. She said she was present to extend another good -faith offer to move on with the new bait stand facility. Mr. J.E. O'Brien, 4130 Pompano, said he felt that the way Ms. Jane Stubbs has been treated by city staff is a disgrace to the city, and it is time that the Council stepped in to straighten out the situation. Mr. O'Brien also asked about the status of the San Patricio pipeline which is supposed to tie into the Mary Rhodes pipeline. He also referred to a page in the agenda packet which lists the Lake Texana pipeline as a Water Department asset. He questioned how something that the city does not own be considered an asset. Mr. Hal George, 500 N. Shoreline, said he has been representing Ms. Jane Stubbs since 1997. Minutes Regular Council Meeting June 22, 1999 Page 3 He said he first wrote to city staff with a proposal for Ms. Stubbs' new bait stand lease in March 1997. Throughout the time that the project has been delayed, Ms. Stubbs has been paying Mr. George for his attorney's fees and she has lost money at the bait stand due to the deterioration of the facility. He said the city signed a contract in which they committed to have the new facility completed by February 28, 1999, which has not occurred. Mr. George said he and Ms. Stubbs are asking that the Council give direction to city staff to move this project forward, which is a service to the city. * * * * * * * * * * * * * Mayor Neal called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 3-10. Council members and audience members requested that Items 3, 5, 9, and 10 be withheld for discussion. City Secretary Chapa polled the Council for their votes and the following were passed: 4. M99-185 Motion authorizing the City Manager or his designee to execute a construction contract with Handex Inc. of Fort Worth, Texas in the amount of $143,546 for the J. C. Elliott Landfill gas interception trench project. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 6.a. RESOLUTION NO. 023675 Resolution determining the necessity for and ordering the improvement of the following highways in Corpus Christi, Nueces County, Texas for the Annaville Area Streets No. 3, Phase 2 project: Margie Drive between Leopard Street and Martine Drive; specifying that certain of these improvements will be paid for partly by the City and partly by assessments while others will be paid for entirely by assessments; and directing the City's Director of Engineering Services to file a Notice of Proposed Assessments with the Nueces County Clerk. The foregoing resolution passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kirmison, B. Longoria, J. Longoria, and Scott voting "Aye." 6.b. RESOLUTION NO. 023676 Resolution approving plans and specifications for improvements to the following highways in Corpus Christi, Nueces County, Texas, for the Annaville Area Streets No. 3, Phase 2 project: Margie Drive between Leopard Street and Martine Drive; approving the Director of Engineering Services' project construction cost estimate including an estimate of the portion Minutes Regular Council Meeting June 22, 1999 Page 4 of costs to be paid by the City and the portion to be paid by assessment; setting a public hearing on these proposed assessments to occur during the July 13, 1999 City Council meeting; directing the City Secretary to arrange to publish notice of this public hearing; and ordering the Director of Engineering Services to provide written notice of the public hearing to property owners. The foregoing resolution passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." M99-187 Motion authorizing the City Manager or his designee to execute an agreement with DORN Technology Group Inc. and DORN Technology Services Inc. for the upgrade of Riskmaster software licensed to the City for managing liability claims and associate services at a cost of $74,579. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 8.a. ORDINANCE NO. 023677 Ordinance appropriating $5,000 from the Devary Durrill Foundation in the No. 6010 Trust Fund - Blucher Park to acquire additional park land adjacent to Blucher Park. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 8.b. M99-188 Motion authorizing the acquisition of Parcel No. 2 located on North Carrizo Street, between Kinney and Blucher Streets, for $44,000 in connection with the Blucher Park expansion project. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, 13. Longoria, J. Longoria, and Scott voting "Aye." Mayor Neal opened discussion on Item 3, purchase of police radios. Mr. J.E. O'Brien said it was stated that the reason for purchasing the radios is to replace lost, Minutes Regular Council Meeting June 22, 1999 Page 5 stolen or non -repairable radios. He questioned whether the Police Department has their radios stolen on a consistent basis. City Manager Garcia pointed out that of the 127 radios being purchased, seven of those are to replace lost, stolen, or non -repairable radios. City Secretary Chapa polled the Council for their votes as follows: 3. M99 -I84 Motion approving the purchase of 127 radios with chargers, belt clips and rings from Ericsson, Inc., Ingleside, Texas, for the total amount of $238,610.84. The award is based on Sole Source. The radios will be used by the Police Department. Funds are provided through the Law Enforcement Block Grant, Crime Control District, and Police Department General Fund. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal referred to Item 4, gas intercept trench at the J.C. Elliott Landfill. He asked if this is a supplemental project. Mr. Andy Leal, Director of Solid Waste Services, said this type of construction is new. He said they have drilled several wells at the landfill in the past, and he noted that there are some probes that are exceeding the limit at the perimeter. He said staff met with the Texas Natural Resource Conservation Commission about their plans for this construction in order to correct the problem. City Secretary Chapa noted that the Council had already voted on Item 4. Mayor Neal then opened discussion on Item 5, public hearing on budgets. Mr. J.E. O'Brien said he thought it would be more beneficial to the public to hold separate hearings on the operating budget and the capital improvement budget. City Manager Garcia replied that in the past city staff has not proposed the capital improvement plan (CIP) in conjunction with the annual operating budget, which he feels has been a weakness in the city's system historically. He said separating the two budgets presents an inaccurate financial picture to both the public and the Council. City Secretary Chapa polled the Council for their votes as follows: 5. M99-186 Motion setting a public hearing on recommended FY 1999-2000 Operating and Capital Improvement budgets during the regular Council meeting of July 13, 1999. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." Minutes Regular Council Meeting June 22, 1999 Page 6 Mayor Neal opened discussion on Item 9, swimming pool standards. Responding to a question from the Mayor, City Attorney Bray said that the definitions section of the ordinance specifically excludes private residential swimming pools, wading pools, hot tubs or spas for the general purpose of the ordinance; however, private pools are regulated with regard to unsanitary conditions, at which time they can be declared a public nuisance. City Secretary Chapa polled the Council for their votes as follows: 9. FIRST READING ORDINANCE Amending the Code of Ordinances, Chapter 23, Article III, Section 23-57, Swimming Pool Standards, to define Hot Tub and Spa; to modify disinfection and water temperature regulations for swimming pools, wading pools, hot tubs or spas; providing for penalties under City Code Section 1-6. The foregoing ordinance passed on first reading by the following vote: Neal, Colmenero, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 10, Stormwater Management Advisory Committee. Mr. R.F. Hasker said that at one time staff proposed a $9 million drainage utility and the Drainage Utility Ad Hoc Committee concluded that such a utility was not necessary. He then commented on the purpose of the Stormwater Management Advisory Committee. Council Member Garrett asked if the Stormwater Management Advisory Committee was really needed. City Manager Garcia replied that after last year's floods, the Council directed staff to look at ways to solve some of the community's major drainage problems and staff began looking into the formation of a drainage utility. He said the Stormwater Management Advisory Committee is designed to act as a sounding board as ideas for the drainage utility are discussed. He said that way they can present to the Council a proposal for a utility which has received support from the entities that will be affected --commercial, residential, and apartment owners. Mr. Garrett asked if this action is headed toward a stormwater utility, and Mr. Garcia replied that it is. City Secretary Chapa polled the Council for their votes as follows: 10. ORDINANCE NO. 023678 Amending Chapter 2, Administration, Code of Ordinances, City of Corpus Christi, relating to the Storm Water Management Advisory Committee. Minutes Regular Council Meeting June 22, 1999 Page 7 The foregoing ordinance passed on second reading by the following vote: Neal, Colmenero, Cooper, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Garrett voting "No." * * * * * * * * * * * * * Mayor Neal then read a proclamation declaring June 22, 1999, as "Marion Luna-Brem Day" in Corpus Christi. The Mayor cited Ms. Luna-Brem's many accomplishments, including appointment to the Port Authority Board, recognition by the Office of Women's Initiatives at the White House, and the 1999 Avon Woman of Enterprise Award. He added that she and her sons have opened different businesses in the area, she has authored a book, and she is scheduled for a national speaking tour in the fall. Ms. Luna-Brem thanked the Council for the recognition bestowed on her. * * * * * * * * * * * * * Mayor Neal deviated from the agenda and opened discussion on Item 15, "live aboards" in the Corpus Christi Marina. He called for comments from the audience. Mr. Andy Ficken, 202 Ghent in Portland, said he has been a marina tenant for some time. He said he is not opposed to live aboards as such when the marina has the infrastructure to support it, which it does not have now. He said he is opposed to using his marina slip fees to help support the people who choose to live on their boats, which at this time is approximately 15 people. Mr. Ficken said if the city wishes to allow live aboards in the marina, the infrastructure needs to be improved. Mr. Roy Pell said he lives aboard his boat in the marina and he owns and operates an automotive repair business. He referred to a report of bay water samples prepared by the City -County Public Health Department lab. He said when the readings of fecal coliforms are high in the marina they are high all along the bayfront, usually due to storm drain runoff. Mr. Pell said boaters' facilities (bathrooms, showers, and laundry facilities) exist on the back side of the Lighthouse Restaurant and access to them is key -controlled. He said he and other live aboards feel those facilities are adequate at this time. Mr. Pell continued that they are requesting a six-month moratorium on enforcement of the ordinance prohibiting live aboards so they can resolve the zoning issue and the wording in the ordinance. He also discussed the pump -out station that is available, and he referred to a letter sent to all marina tenants which implies that the Water/Shore Advisory Committee was involved in the 30 -day notice regarding live aboards. Mayor Neal asked Mr. Pell how long he has lived on his boat, and Mr. Pell replied three weeks. The Mayor then asked if Mr. Pell was aware of the provision in the marina space rental contract which prohibits live aboards. Mr. Pell said he was aware of the contract provision and of the June 30th date for enforcement of the ordinance; however, he said that for a long time the city Minutes Regular Council Meeting June 22, 1999 Page 8 has chosen to look the other way with regard to live aboards. He said they are merely asking for an opportunity to work in good faith with the city to resolve the legal issues. Responding to Council Member Colmenero, City Manager Garcia said that the current zoning ordinance does not allow residential occupation in the marina; a new zoning category would have to be created if the Council wished to allow live aboards in the marina. Mr. Michael Gunning, Acting Director of Planning and Development, said it would take at least four months to develop that new zoning category due to statutory notice limits. Mr. Colmenero asked if the city has considered allowing live aboards. Mr. Garcia replied that staff has not because live aboards are a violation of the lease provision, zoning code and other regulations. He said the city has been derelict in allowing the situation to exist and staff is now attempting to enforce the existing regulations. Mr. Garcia said city staff changes have prompted the move toward enforcement; namely, a new City Manager, Park and Recreation Director, and Marina Superintendent. Mr. Colmenero asked if there is a security problem at the marina, and Mr. Garcia said there are incidents of theft, violence, and cars being broken into. Mr. Colmenero said the contract is very clear on this issue. Mr. Pell replied that their request for a six-month moratorium should be viewed as part of a larger picture, and he reiterated that they are asking the Council to direct staff to develop a compromise solution. Mr. Frank Beck said he was Vice -Chairman of the Water/Shore Advisory Committee when the Park Director and Marina Superintendent at that time asked the committee to review the live aboard issue. He said the then -Marina Superintendent went to other marinas in order to bring live aboards to Corpus Christi Marina to help deal with the security problem there. Mr. Beck said he does not have a position one way or the other regarding live aboards, but he said he disagreed with the letter to all marina tenants which inferred that the Water/Shore Advisory Committee shared staff's views about live aboards. He said that issue never came before the committee for a vote. He added that the issue was before the Council because the committee members wanted to have more time to explore it before they tell the live aboards to leave. Mr. Leon Perez said he wished to address the Council under petitions from the audience. Mayor Neal informed Mr. Perez that petitions had been heard earlier in the Council meeting. Mr. Roger Wright said he was a former member of the Water/Shore Advisory Committee and Chairman of the subcommittee that addressed the live aboard issue. He said they surveyed 18 Texas marinas, 16 of which allowed live aboards. Mr. Wright said that in April 1998 the Water/Shore Advisory Committee voted to forward a draft of live aboard regulations to city staff for their consideration. He said he agreed with Mr. Pell that they should be given time to work with city staff to allow live aboards, as they do in Sarasota, Florida, and other areas. Mr. Wright also read an endorsement of live aboards made by Ron and Dottie Childs, who lease a slip next to Mr. Wright. Minutes Regular Council Meeting June 22, 1999 Page 9 Responding to Council Member John Longoria, Mr. Wright said that while he lives on his boat now, he did not do so when he served on the Water/Shore Advisory Committee. He said he is aware of the lease provision prohibiting live aboards, but added that marina staff have said that while the city officially does not allow live aboards, they would like people to be in the marina. Mayor Neal commented that if there are city employees encouraging people to knowingly violate an ordinance, he hopes they are no longer employed. Mr. Steve Moody, 6638 Sahara, said the TNRCC report referred to by Mr. Pell contained more information and was lengthier than he implied. Mr. Moody also said the facilities that will be built will not be accessible to the general public but to the boaters themselves. Mr. Ismael Martinez said he thought the moratorium being requested would be appropriate. He said Corpus Christi is known for its bayfront and he encouraged a spirit of cooperation with those who live aboard their boats. Responding to Council Member Betty Jean Longoria, Mr. Garcia said city staff has begun the process of enforcing the existing ordinances and leases with regard to live aboards. He said that at their last meeting, the Council requested that this issue be considered; however, staff is not recommending any departure from the existing policies. Mayor Neal then called for the staff presentation. Mr. Tony Cisneros, Director of Park and Recreation, said that both Section 12-45.1 of the City Code of Ordinances and the City Marina Rules and Regulations contain a prohibition against living aboard water craft. He referred to the letter dated May 13, 1999 sent to all marina tenants which stated in part, "those persons who are currently living aboard their watercraft...must vacate their watercraft as a permanent abode by June 30, 1999." Mr. Cisneros noted that under the `B-2" Bayfront Business District zoning, the marina definition does not include provisions for either temporary or permanent habitation. He displayed photographs of the marina's current facilities and he discussed the marina's infrastructure needs, including additional parking, restrooms, showers, and laundry facilities; a wastewater circulation system; additional pump -out stations; and additional electric/water meters. The Park Director said if live aboards are to be allowed, marina fees would have to be changed and/or adopted, including the slip rental fee, live aboard fee, and live aboard utilities fee. Other issues would also have to be addressed, such as live aboard operations and pets, parking, and security. He stated that the Water/Shore Advisory Committee was recommending that a six-month moratorium be enacted on the enforcement of live aboard violations; however, staff was recommending that they enforce the existing marina ordinances until such time as they are amended. In reply to Mr. Colmenero, Mr. Garcia said that since the marina operates as an enterprise fund, the marina fees would need to be increased so the city could borrow the money to make the necessary capital improvements. Minutes Regular Council Meeting June 22, 1999 Page 10 Council Member Scott asked about the status of the Water/Shore Advisory Committee's recommendations which were submitted to the staff in April 1998. Mr. Mike Gordon, Assistant Director of Operations, said staff began looking into the various policies and procedures that would be needed to control live aboards. He said staff contacted marinas in the area and across the nation to gather information on the issue. He said in the interim the new Marina Superintendent was hired and he has continued that research. Mr. Gordon added that the recommendations have not gone back to the Water/Shore Advisory Committee. Responding to additional questions from Mr. Scott, Mr. Cisneros discussed the issue of zoning restrictions concerning recreational vehicles. Mr. Peter Davidson, Marina Superintendent, commented on Coast Guard -approved marine sanitation devices, parking concerns, water sampling, and fire prevention measures. Mr. Scott said it seems there would be a way to allow live aboards that would not require a great deal of additional infrastructure --namely, by requiring that the live aboards themselves provide specific facilities and pay certain fees. In reply to Mrs. Longoria, Mr. Garcia said the Water/Shore Advisory Committee is essentially attempting to mediate between the people who are living aboard their boats now and staff's attempt to enforce the existing lease agreements and zoning requirements. Mrs. Longoria requested a list of the Water/Shore Advisory Committee members. Council Member Cooper asked if any major cities allow live aboards. Mr. Davidson said several cities around the nation do, including Annapolis and Key West. He noted that there are very few marinas located in a city's downtown area, as Corpus Christi's marina is. Mr. Longoria asked if any members of the Water/Shore Advisory Committee currently live aboard a boat, and Mr. Cisneros said they do not. Mr. Longoria said he thought the Council needed to maintain the enforcement of the existing ordinances regarding live aboards, particularly since the infrastructure is not in place to support them. He said if the committee wished to pursue the live aboard issue, they need to bring that to the Council and then work out the details on how to proceed. Mayor Neal said a question has been raised about the charges for water and wastewater with regard to the marina. He said staff needs to review that issue. City Secretary Chapa polled the Council for their votes as follows: 15. FAILED TO PASS 12 45.1, and 12 79 to allow for current live aboards to rcmain at the Corpus Christi Marina. The foregoing motion failed to pass by the following vote: Scott voting "Aye"; Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, and J. Longoria voting "No." Minutes Regular Council Meeting June 22, 1999 Page 11 * * * * * * * * * * * * * Mayor Neal opened the public hearing on the following zoning case: 11. Case No. 599-3, Ricardo Gonzales: A change of zoning from an "R -1B" One -family Dwelling District to an "AB" Professional Office District on Gardendale, Block 7, Lots 3A and 3B, located on the south side of Cain Drive, approximately 230 feet east of Everhart Rd. City Secretary Chapa said the Planning Commission and staff recommended approval of the "AB" Professional Office District. No one appeared in opposition to the zoning change. Council Member Colmenero made a motion to close the public hearing, seconded by Council Member Cooper, and passed (Garrett absent). Mr. Chapa polled the Council for their votes as follows: ORDINANCE NO. 023679 Amending the Zoning Ordinance upon application by Ricardo Gonzalez, by changing the zoning map in reference to Lots 3A and 3B, Block 7, Gardendale, from "R -1B" One -Family Dwelling District to "AB" Professional Office District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Colmenero, Cooper, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Garrett absent. ************* Mayor Neal opened the public hearing on the following zoning case: 12. Case No. 599-4, Sin Choi: A change of zoning from an "AB" Professional Office District with a Special Permit to a "B-4" General Business District on Gray Village Unit 2, Block 2, Lot 8, located on the west side of Everhart Road, approximately 130 feet north of Mt. Vernon Drive. City Secretary Chapa said the Planning Commission and staff recommended denial of the "B-4" District and in lieu thereof, approval of a "B-1" Neighborhood Business District. No one appeared in opposition to the zoning change. Council Member Scott made a motion to close the public hearing, seconded by Council Member Cooper, and passed. Mr. Chapa polled the Council for their votes as follows: ORDINANCE NO. 023680 Amending the Zoning Ordinance upon application by Sin II Choi, by changing the zoning Minutes Regular Council Meeting June 22, 1999 Page 12 map in reference to Lot 8, Block 2, Gray Village Unit 2, from "AB" Professional Office District with a Special Permit to `B-1" Neighborhood 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 by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." * * * * * * * * * * * * Mayor Neal called for a brief recess. * * * * * * * * * * * * * * Mayor Neal deviated from the agenda and opened discussion on Item 14, consideration of funding options for the elevation of the JFK Causeway. City Manager Garcia explained that approximately $8 million is needed to complete the overall funding package for the JFK Causeway project. He said that both Nueces County and the City of Corpus Christi had each been scheduled to contribute $4 million; however, the county decided to attempt to finance the whole $8 million through its bond proposal, which was recently defeated. As a result, said the City Manager, he has asked Ms. Mary E. Sullivan, Finance Director, to explore available options through both certificates of obligation and the State Infrastructure Bank (SIB). Ms. Sullivan first discussed the city's debt model and debt capacity. She said that for the next seven to eight years --at the city's current tax rate --the city has no capacity to issue any additional debt. She said one option to finance the city's $4 million share of the causeway project is through the SIB. She said the SIB does not have a set interest rate or set repayment schedule --it is all negotiable. She said the SIB also allows municipalities to defer repayment for up to five years after completion of construction. Ms. Sullivan said that deferment option would allow the city to structure a debt payment schedule that could fit into its existing debt model. She added that they do not know what the interest rate would be, although it has ranged from 4% to 51/2%. Responding to Council Member Betty Jean Longoria, Ms. Sullivan explained that the process involves submitting an application for SIB funding to the Texas Department of Transportation (TXDOT), which would give the city preliminary approval in four to six weeks that the causeway project qualifies for the funding. Once that happens, the city would negotiate the actual repayment terms and the structure of the loan. Ms. Sullivan added that the deferment option does cost a little more in the long run because the city would be accruing interest during that time. Mr. Garcia said that during the process, the SIB would evaluate the city's capacity to repay the debt. He noted that pursuing the SIB funding would be a policy decision that the Council would have to make. Minutes Regular Council Meeting June 22, 1999 Page 13 In reply to Council Member Kinnison, Mr. Garcia said the city has a problem in funding any capital programs. He said the SIB provides the city with a very favorable financing mechanism; consequently, he said the city could consider this option if the Council wished. However, the need to pay for other capital improvements remains. Mr. Kinnison asked if there were other city projects that would be eligible for SIB funding. Mr. Garcia said projects must qualify for federal aid under existing federal rules, and they must be on the federal statewide Transportation Improvement Plan (TIP); Corpus Christi has several planned TIP projects. Responding to Council Member Colmenero, Mr. Garcia said that staff is looking into the possibility of using SIB funding for other eligible projects. However, he said, he recommends exercising considerable caution because the city would essentially be mortgaging its future debt capacity; i.e., the city would be spending its 2008 money in 1999. Mr. Garcia said that on a $4 million loan, they estimate that the SIB would only allow a 10 -year repayment in installments. Ms. Sullivan added that there would be no penalty for prepaying the loan. Mr. Garcia said the alternative would be to raise the $4 million for the causeway project through a certificate of obligation, and in order to do that the city would need $400,000 in debt service funds, which would require a little less than a half -percent increase in the ad valorem tax rate. He added that staff will provide the Council with a complete picture of the city's capital improvement plan and funding options in the next few weeks. Council Member Scott asked if the causeway is on the TIP, and Mr. Garcia said it is, which is the only way it would be eligible for funding. He added that if the valuations rise, the city's debt capacity would rise. Ms. Sullivan said the debt model assumes 3V% inflation in the property valuations. Mrs. Longoria asked if Leopard Street would be eligible for SIB funding. Mr. Garcia said he thought staff was specifically looking into the option of funding Leopard Street through the SIB. He said that would reduce the amount needed to complete the 1986 bond projects. Mrs. Longoria asked about the county's plans for the causeway project. Mr. Garcia said the County Judge indicated that the issue is on their agenda for consideration on June 23`a Council Member Gonzales said that regardless of the causeway project, if the city wishes to fund its capital improvement program, it will have to raise taxes. Ms. Sullivan said the causeway project does layer an extra layer of debt in the city's overall structure; she said everything has to be considered together. Dr. Gonzales said that although the city would be borrowing its $4 million share, it would be receiving $41 million in order to elevate the causeway, which he said will benefit the city's economy. He said he hopes the Council will direct the staff to start looking into the SIB funding so they can bring it back to the Council for action one way or the other. Minutes Regular Council Meeting June 22, 1999 Page 14 Mr. Kinnison said he has spoken with people who regretted having to vote against the causeway project because they did not approve one or the other of the bond proposals on the ballot. He said they need to find a way to elevate the causeway, adding that it is time for the many agencies in this area to begin working together. A discussion ensued regarding other agencies' funding, such as the Regional Transportation Authority, as well as the 1986 bond program. Responding to Council Member John Longoria, Mr. Angel Escobar, Acting Director of Engineering Services, discussed the Crosstown extension and interchange. Mr. Garcia added that staff will provide more information to the Council about the capital improvement projects at an upcoming meeting. Dr. Gonzales said they do not want to jeopardize the funding for any 1986 bond projects. Mayor Neal said maintaining the ratio of the amount of ad valorem tax money used to pay the General Fund operating budget is critical to this whole discussion, since the city's ability to pay its debt has to be considered. He said that he worked very hard to try to get the county's bond proposals passed. He also stated that one of the reasons the city is in financial trouble today is because prior City Councils did exactly what the current Council is being asked to do --they obligated the future. The Mayor went on to say that he supports the recommendation to review the SIB funding option during the Council's July 13`h meeting and to put the issue into the proper context with all the city's other debt, General Fund expenditures, and the capital improvement program. Mrs. Longoria made a motion, seconded by Mr. Scott, to direct staff to continue investigating the funding options for the JFK Causeway elevation project and its impact on the city budget, and to place an item on the Council's July 13`h meeting agenda for further discussion and consideration. The motion passed unanimously. Mr. Kinnison said the city has $750,000 that has not yet been allocated, and it is important to consider how those funds will be allocated. Mayor Neal called for comments from the audience. Mr. J.E. O'Brien said he agrees with the Mayor that previous Councils have mortgaged the city's future for years. In order to finance the causeway project through the SIB, he suggested setting up a fund in the city's current budget by tightening up and taking money from various sources, such as a portion of the $750,000 referred to by Mr. Kinnison, and by reducing the amount of money going to the Greater Corpus Christi Business Alliance and Downtown Management District. Mr. O'Brien said that while he was a strong opponent of the recent bond election, he believes the JFK Causeway project has merit. Mr. Abel Alonzo said he is concerned about comments by the Council and the Nueces County Commissioners concerning taking money away from other entities, such as the Regional Transportation Authority. He said the RTA has been operated very efficiently and he discussed the Minutes Regular Council Meeting June 22, 1999 Page 15 importance of public transportation for economically disadvantaged, disabled, and elderly persons. He said the Council needs to run the city the best way they can and leave other agencies alone. Mayor Neal opened discussion on Item 13, consideration of the FY 99-00 operating budget. City Manager Garcia said the discussion that day would focus on the city's combined utilities, including administrative costs and capital improvements, and the city's utility debt capacity model/five-year rate model, In introducing the first presentation concerning the Water Department, Mr. Garcia commented that Corpus Christi is in a much better position with regard to its water supply than many other municipalities, including San Antonio. He said the Council recommended exploring the possibility of competitively bidding its utilities, which will be discussed in July. Another major issue to be considered by the Council will be the formation of a stormwater utility. Mr. Hubert Hall, Assistant Water Superintendent, said the mission of the Water Department is to operate and maintain a water system that will provide quality water to meet the needs of the present and future water customers of the system. He said the department's total staffing is 232 with no additional staff requirements for FY 99-00. The geographic work area includes the City of Corpus Christi, its extraterritorial jurisdiction, and 100 miles to both Choke Canyon and Lake Texana. He said the Water Department's facilities include: Lake Corpus Christi and Choke Canyon Reservoir, Mary Rhodes Pipeline, Calallen Saltwater Barrier Dam, O.N. Stevens Water Treatment Plant, Nueces River Raw Water Pump Station, the transmission and distribution main system, the water meter system, distribution system pumping plants and elevated storage tanks, and fire hydrants. Mr. Hall also discussed raw water diversions and treated water use. He noted that total expenditures for the Water Department are budgeted to be approximately $53 million, and operation and maintenance expenditures are budgeted at about $24 million. Mr. Hall said the department's capital improvement projects include transmission mains from the Stevens Plant to Padre Island (a 20 -year program); renovations to the plant itself; Wesley Seale Dam; Choke Canyon Dam; Calallen Dam; and utility relocations in street reconstruction projects. Responding to questions from Council Member Garrett, Mr. Garcia and Mr. Hall discussed fire hydrants and water pressure on Padre Island. In reply to Council Member Scott, Mr. Garcia said the city has not yet accepted the Mary Rhodes Pipeline from the contractor since it is still in progress, but they anticipate having it in the city's possession soon. Mr. Scott also referred to a May 1999 water and wastewater survey in Texas Town and Country magazine which indicates that Corpus Christi's average water cost is far below the state average. Council Member Colmenero asked Mr. Hall to further discuss planned capital outlays, and Council Member Gonzales asked about the next report on the pipeline. Mr. Garcia said staff will present it on July 20th. Minutes Regular Council Meeting June 22, 1999 Page 16 The next presentation was made by Mr. Foster Crowell, Wastewater Superintendent. He said their mission is to protect and/or improve the health, welfare and quality of life for the citizens of Corpus Christi by providing for the collection, treatment, and disposal of wastewater in accordance with all federal, state, and local regulations in the most cost-effective manner possible. Mr. Crowell said the Wastewater Department's facilities include six treatment plants, 94 Lift stations, and a 1,250 -mile collection system which serves 74,500 customers. There are 228 employees in the department. He also discussed performance plans and measures for the department, including responding to trouble calls and meeting treatment plant regulatory parameters set by the EPA and TNRCC. As a result of meeting 99.75% of the treatment parameters, the department has received three AMSA gold awards (0 exceedences) for exemplary performance and three silver awards (five or less exceedences). He noted that Corpus Christi's rate is fairly competitive when compared to other Texas cities. Mr. Crowell also discussed the Wastewater Department's budgeted revenues of $28,023,043 (most of which will come from single and multi -family residential fees), and budgeted expenditures of $26,949,804. Capital improvement projects proposed for FY 99-00 include: force main repairs and replacement; Laguna Madre Plant collection system rehabilitation; inflow and infiltration -related collection system enhancement program; microwave communication system; sanitary sewer installation in developed areas; lift station improvements and the Carolyn Heights diversion project; Broadway Plant lift station and diversion to the Greenwood Plant; utilities building expansion; and the Sharpsburg lift station and Up River Road force main projects. Responding to Mayor Neal, Mr. Crowell said the Allison Plant diversion project, which began in October 1998, diverts about 2 million gallons per day of effluent to the estuary. He noted that a report will be provided regarding the progress of that project. In reply to Mr. Scott and Mr. Garrett, Mr. Crowell discussed the city's rate of service and miscellaneous fees, as well as the timeline for the shut -down of the Broadway Plant. Mr. Kinnison asked why the city has so many treatment facilities, and Mr. Crowell said it is because the topography is so flat. He also discussed ways in which treatment costs can be reduced through planned capital projects. In reply to Mr. Colmenero, Mr. Crowell discussed the TNRCC treatment parameters at some of the plants, including the Allison, Oso, and Greenwood plants, as well as the inflow and infiltration problem and outsourcing the cleaning program of the lines. Ms. Valerie Gray, Stormwater Superintendent, said the Stormwater Department's mission is to operate and maintain a drainage system that provides safe, dependable surface drainage in each neighborhood and can be maintained easily at a reasonable cost. They also intend to have a proactive planning process that will ensure that new development does not have a negative impact on existing neighborhoods; to have a flood protection system that will protect the community's residents; and to improve the environment by improving the quality of stormwater runoff by remaining in compliance with federal and state regulations. Minutes Regular Council Meeting June 22, 1999 Page 17 Ms. Gray said the Stormwater Department, which consists of 85 full-time employees, is divided into four activities: administration, maintenance and operation, environmental services, and education and support services. The department's infrastructure includes: three pump stations; 23 storm drain flap gates; five storm surge protection levy gates; 100 miles of major drainage ditches; about 800 miles of minor drainage ditches; 1,000 miles of underground storm drain pipes; 13,000 storm drain inlets; 2,000 miles of curbs and gutters; and 56 bridges. She said the budgeted total expenditures for FY 99-00 are $7,455,851. Stormwater capital improvement projects include the following: curb and gutter replacement; bridge rehabilitation and replacement; drainage master plan development and update; open channel ditch improvement (both quality and quantity); underground pipe system capacity upgrading; flap gate and levee gate rehabilitation; and utility relocations in street reconstruction. In addition, several projects address areas that have historically experienced extensive flooding, such as the downtown drainage implementation plan and drainage improvements in the Crossgate subdivision, Glen Arbor subdivision, and Kostoryz Road. In response to Council members' questions, Ms. Gray further discussed aspects of her presentation, including specific areas of drainage improvements, private contracting and the need to maintain ditches, and the possible formation of a drainage utility. Ms. Debbie Marroquin, Gas Superintendent, said the Gas Department is once again bringing forward a balanced budget for FY 99-00. Revenues are predicted to be $23,991,489 and expenditures are predicted to be $23,295,045. She said approximately 48% of revenues and expenditures are attributed to the purchase and sale of natural gas, which equates to $11,413,000 at an estimated volume of 3.91 BCF and a price of $2.91 per MCF. She said they serve 56,375 customers, of which 3,518 are commercial customers who purchase 54% of the gas. Ms. Marroquin noted that the city has 1,224 total miles of distribution gas mains. Ms. Marroquin explained that the Gas Department focuses their operations in three main areas --operation of pipe, valves and fittings; repair and replacement of meters; and maintenance of the fleet and equipment. She said system enhancements include: compression fittings removal program; construction projects to enhance infrastructure and aid in competitive bidding of the natural gas supply contract; and support of the Clean Cities program. She also discussed appliance light -ups, Operation Heat Help, and communications, and she reviewed a comparison of Texas cities' monthly residential gas bill. She then responded to Council members' questions. Mr. Garcia said the next issue to be discussed is the five-year utility rate plan. He noted that since this is the fifth year of the five-year plan, staff is proposing to maintain a rolling five-year rate plan which will be adopted by the Council as part of the budget each year. He said the rating agencies had recently raised that issue. Ms. Sullivan, Finance Director, said that some of the issues considered in developing the Minutes Regular Council Meeting June 22, 1999 Page 18 five-year rate plan were: the desire to minimize rate increases while still providing the ability over the long-term to finance capital requirements; and the need to continue to meet the debt service requirements. She said they prefer to have a level pattern of rate increases rather than rate "spikes." Ms. Sullivan said that while they viewed the Combined Utilities System as a whole, they also looked at each utility with the goal that it be self-supporting. In addition, they are working to ensure that the utilities' fund balances include at least 25% of operating expenses. Ms. Sullivan said the last five-year plan included 6% increases for each of the three utilities: water, wastewater, and gas. The proposed five-year plan is as follows: water would have a 6% increase effective August 1, 1999, and 4% increases for each of the next four years; wastewater would maintain 6% increases throughout the five-year period; and gas would have a 3% increase effective August 1, 1999, and a 2% increase for the four years thereafter. She also discussed the cash flow included for the five-year debt model. Mr. Garcia commented on how the utilities' major capital improvements will be anticipated in the rate plan. Ms. Sullivan pointed out that staff assumes some construction cash flow for the full 15 years they examined. With regard to financing, Ms. Sullivan said the city is using the commercial paper program to provide funding of construction as cash is spent. As the commercial paper builds up to a large enough amount to issue the bonds, they then refund that with revenue bonds. She also discussed the importance of adequate debt service coverage for water and wastewater (the gas utility does not have any outstanding debt so no debt service coverages are required). Ms. Sullivan then reviewed how the proposed rate increases will affect average monthly residential bills for inside city limits customers. She pointed out that the chart excludes raw water cost, purchased gas adjustment, and sales taxes where applicable. Responding to the Council, Mr. Garcia further discussed the proposed rate increases, particularly the problem that if a rate increase is deferred, the cost is then compounded in future years. Ms. Sullivan noted that the increases take into account future capital improvement projects. Mr. Garcia reiterated that the revenues generated from the rate increases go to two areas --operation and maintenance of the system and to meet the debt service obligations. In reply to another question, City Attorney Bray said he does not believe the city can charge a franchise fee for its utilities under the present language in the City Charter. He said if the gas utility was sold to a private company, then it can be charged a franchise fee, such as CPL or Southwestern Bell. There was also a brief discussion of the wastewater winter averaging program. Mayor Neal called for comments from the audience, and there were none. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 16, Staples Street Pumping Plant construction. There were no comments from the audience. City Secretary Chapa polled the Council for their votes: Minutes Regular Council Meeting June 22, 1999 Page 19 16. M99-189 Motion authorizing the City Manager or his designee to execute a construction contract in the amount of $2,298,830 with Pre -Load Inc. of Dallas, Texas for the Staples Street Pumping Plant - new pumping plant and storage reservoir. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 17, Arthur Andersen contract. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 17.a. ORDINANCE NO. 023681 Ordinance appropriating $291,605 of interest earnings in the computer systems 1998 Fund No. 3170 to partially fund Amendment No. 1 to the Arthur Andersen contract. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 17.b. M99-190 Motion authorizing the City Manager or his designee to execute a contract change with Arthur Andersen, LLP, in the amount of $345,300 for additional contractor resources and modification of the project's scope. This increases the existing contract amount from $4,644,552 to $4,989,852. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 18, hike and bike trail project. He called for comments from the audience, and there were none. Responding to Mr. Longoria and Mr. Kinnison, Mr. Garcia said the Ocean Drive overlay project is one of the issues to be discussed during the CIP presentation. He added that the hike and bike trail project will be phased in as federal and local funds become available. City Secretary Chapa polled the Council for their votes as follows: Minutes Regular Council Meeting June 22, 1999 Page 20 18. M99-191 Motion approving Amendment No. 1 between the State of Texas and City of Corpus Christi to the advance funding agreement for the Bay Trail Phase 2 hike & bike trail project by phasing the project due to cost constraints so that Phase 2A is limited to improvements to the public park areas of Ocean Drive between Cole Park and the Ocean Drive at Alameda intersection, with future phases as funds become available to complete the project as originally envisioned. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 19, Community Youth Development programs. There were no comments from the audience. Council Member John Longoria asked if there was a move to combine the 78415 Committee and the Weed and Seed Committee. Mr. Cisneros said staff is following up on that issue with the two entities. Mr. Longoria said they had discussed the possibility of capping the grant amounts. City Secretary Chapa polled the Council for their votes as follows: 19. M99-192 Motion approving the submission of FY 1999-2000 Community Youth Development programs in the amount of $500,000 to the Texas Department of Protective and Regulatory Services as recommended by the Community Youth Development Steering Committee. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 20, Coastal Bend Bays & Estuaries Program. He called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 20. RESOLUTION NO. 023682 Resolution approving an interlocal agreement establishing the Coastal Bend Bays & Estuaries Program and authorizing the City Manager to execute the agreement. Minutes Regular Council Meeting June 22, 1999 Page 21 The foregoing resolution passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal said the Council had received a request about possibly revising the wrecker ordinance. He directed the City Attorney to review the request and determine whether it is necessary for the Council to consider that revision. The Mayor said he has also had some discussions with Council members about relaxing the Council's dress code during their meetings in the summer. There was consensus of the Council to adopt a dress code which includes sports shirts without coats and ties during the months of June, July, August, and September. The Mayor then called for Council concerns and reports. Responding to Council Member Betty Jean Longoria, Mr. Cisneros said staff is reviewing the possibility of incorporating surfacing improvements around the Cole Park Amphitheater Council Member Gonzales commended City Manager Garcia and his staff for their budget presentations. He also said he thought they should discuss funding for the city's lobbyists. Mr. Garcia noted that state lobbyists are paid for out of the City Attorney's Office and federal lobbyists are paid for out of a utility fund. He said they will highlight those areas when they bring the budget to the Council for adoption. Council Member Garrett asked whether the city has any input regarding the Housing Authority. Mayor Neal replied that the Housing Authority Board is appointed by the Mayor in his capacity as the chief executive officer of the municipality that had authority for creating the Housing Authority. He said the board is diligently working on issues that were raised by a recent HUD audit. Mr. Garcia added that the city does not have any direct administrative responsibility for the Housing Authority. Council Member John Longoria said West Oso had their first organizational meeting for their neighborhood council as part of the Crime Control and Prevention District. He suggested that staff develop a video to assist neighborhood councils as they are being formed, as well as specific maps of their geographic areas of responsibility. Mr. Longoria also said he is chairman of the Lexington Manor Apartment Association and he announced that Casa de Manana Apartments recently received a $125,000 grant through HUD that will be used for a computer learning center and other projects. There being no further business to come before the Council, Mayor Neal declared the Council meeting adjourned at 7:00 p.m. on June 22, 1999. * * * * * * * * * * * * *