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HomeMy WebLinkAboutMinutes City Council - 10/12/1999r I 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 October 12, 1999, which were approved by the City Council on October 19, 1999. WITNESSETH MY HAND AND SEAL, this 19th day of October, 1999. SEAL Armando Chapa City Secretary MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting October 12, 1999 9:09 a.m. PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Rex A. Kinnison Council Members: Javier D. Colmenero Melody Cooper* Henry Garrett Dr. Arnold Gonzales Betty Jean Longoria John Longoria Mark Scott City Staff: City Manager David R. Garcia City Attorney James R. Bray Jr. City Secretary Armando Chapa Recording Secretary Rachelle P. Ramon Mayor Neal called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Rev. E.F. Bennett, following which the Pledge of Allegiance to the United States flag was led by Council Member Colmenero. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Neal called for approval of the minutes of the regular Council meeting of September 28, 1999. A motion was made and passed to approve the minutes as presented. City Manager Garcia then introduced Mr. George Noe, the new Deputy City Manager, who said he has been involved in municipal government for about 23 years, 14 of which he spent in San Antonio and four in College Station. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 3, consideration of the developmental process for the proposed Year 2000 capital improvement bond program. City Manager Garcia explained that major capital investments need to be made in the community, and the only way to do that is through a voter -approved bond program. Mr. Garcia said the first step is to determine how the public participation process will be structured. He said that during the first discussion of the bond issue on September 21, 1999, the Council indicated that they wanted community-based participation. Consequently, staff is proposing to hold eight hearings --five district hearings and three city-wide hearings. He said there are three options as to who should conduct the hearings: city staff, the Planning Commission (with assistance Minutes Regular Council Meeting October 12, 1999 Page 2 from city staff), or the City Council (also with assistance from staff). Mr. Garcia said staff was suggesting the following sites for the hearings: District 1 -Northwest Senior Center; District 2 -Bayfront Plaza Convention Center; District 3 -Foy Moody High School; District 4 -Haas Middle School; District 5-Kaffie Middle School; and three city-wide hearings at Flour Bluff High School, Northwest Senior Center, and the City Council Chambers. He said at the public hearings staff would provide a list of projects that were already included in the capital improvement program (CIP) and receive input from the citizens about what projects they think should be included. The next step would be to identify the scope and costs of the projects not already in the CIP and to present that list to the Council with financing alternatives. The City Manager then described the capital policies the Council had previously adopted, and he discussed criteria that can be used to evaluate the projects for consideration in the bond issue. Those criteria include fiscal impact, health and safety effects, community economic effects, environmental effects, disruption and inconvenience caused, feasibility, implications of deferring a particular project, and intergovernmental effects. Mr. Garcia said the Council would need to direct the process for educating the public on identified community needs, and obtaining comments and additional recommendations from boards and commissions, civic groups, and the Planning Commission. The final steps would involve meeting with other jurisdictions, composing the ballot, and setting the date for the bond election. A discussion ensued about the public hearings that would be held and ways to educate the public about the capital projects. Several Council members stated that they would like to hold more than one hearing in their district and possibly at different sites than those recommended by staff. Council Member John Longoria said he did not think that sufficient input would be garnered through the public hearing process being proposed. He said that in the past surveys were distributed to citizens to gain their ideas and he suggested that hearings he held in conjunction with civic group meetings. *Council Member Cooper arrived at 9:50 a.m. Mr. Angel Escobar, Director of Engineering Services, then gave a presentation on the current capital improvement program and additional needs that have been identified. Examples of current city-wide projects are: Park and Recreation--renovation/development of existing park land ($4.5 million), youth sports facility improvements ($5 million); Streets --street reconstruction/rolled curb and gutter improvements ($80.3 million), neighborhood street improvements/voluntary paving program ($3.04 million), street lighting improvements/residential and arterial streets ($3.15 million), and traffic signal improvements ($8.39 million); Public Health Facilities --fire and police public safety training center ($3 million), animal control facility ($2.1 million), and vector control building ($530,000). Mr. Escobar said the current capital improvement projects broken out by Council districts Minutes Regular Council Meeting October 12, 1999 Page 3 are as follows: District 1-418,364,000; District 2-484,075,000; District 3-46,774,000; District 4-- $19,403,000; and District 5--$40,067,000; fora total of $168,683,000. The total of city-wide projects is $114,564,000, and the projects in which no locations have been sited total $5,630,000, for a grand total of $288,877,000. Council members questioned why the projects had been broken out by Council district, and Mr. Escobar explained that that was done for informational purposes only. Additional needs identified are: overlay of arterials, major street lighting, major sidewalk reconstruction, ADA compliance in sidewalks and administrative facilities, and an 8,000 to 10,000 - seat arena. Responding to Mayor Neal, Mr. Escobar discussed the process and time line for having projects included in the five-year CIP and how that is impacted by the state's and federal government's planning processes. The Mayor pointed out that the District Engineer of the Texas Department of Transportation (TXDOT) said no additional funds will be available from the Metropolitan Planning Organization for projects that are outside the scope of financing for the next five years. In response to Council Member Scott, Mr. Escobar and Mr. Joe Montez, Budget Director, discussed projects that are in the CIP and that are financed by other sources. The next presentation was made by Ms. Mary Sullivan, Director of Finance, regarding financing options for the proposed bond election, which could involve using property taxes, sales taxes, or a combination of both. With the first option, property tax rates would be set each year to satisfy debt service requirements on the new debt. Actual tax rates would depend on the amount of projects approved, the timing of bond sales to support construction schedules, and property values. Ms. Sullivan said that for the purposes of her presentation, the following assumptions were used: $100 million of projects approved; $20 million bonds sold per year for five years; 5.6% interest rate; maximum 20 years maturity; 63% coverage of next year's debt service; and 1% growth in property values. She then reviewed charts showing the city's existing debt on its general obligation and certificate of obligation bonds, which were divided into existing debt that is supported by property taxes and debt which is self-supporting (i.e., airport, golf centers, marina). She also discussed projected property tax rates for debt service with a $100 million bond election, comparing the total with levelized new debt service versus the total with "backloaded" new debt service. Ms. Sullivan also discussed projected increases in property tax rates at various growth rates (0%, 1%, 2% and 3% growth). Responding to Council members' questions, Mr. Garcia said part of the way the city is able to maintain a level rate is through its coverage ratios and reserves; however, the actual property tax revenue is set every year by the tax assessor. The Finance Director then reviewed the sales tax approach to the bond issue. She said a sales tax of 1/8, 218, or 3/8 cents could be approved by voters for economic development projects. She said it would require that an economic development corporation be established to administer the revenues and expenditures. Also, the city could fund the projects directly from the sales tax revenues or finance the projects and use the sales tax to fund the debt service. She noted that 2 cents of the Minutes Regular Council Meeting October 12, 1999 Page 4 sales tax is available for local use. The current break down is: city - 1 cent, RTA -'h cent, and Crime Control District - 1/8 cent, which leaves three 1/8 -cent increments available. She added that each 1/8 cent will bring in approximately $3.8 million (based on current budget figures). Ms. Sullivan cautioned against using all of the remaining 3/8 cents left. She also referred to a chart showing the estimated dollar amount of projects that can be supported by a sales tax increase. For example, a 1/8 cent increase could result in $40 million in projects, with estimated annual principal and interest of $3.6 million. Under the third option, Ms. Sullivan said a combination of property taxes and sales taxes could be used to finance the projects, which she said is more complicated and must be clearly communicated on the ballot. Mr. Jeff Leuschel, bond counsel, gave a legal overview of the general obligation (GO) bond election procedures. He said the city can have an election for capital improvements and the proposition requires the city to levy a tax in support of the payment of the debt service on the bonds that are approved by the citizens. He said propositions must be clearly stated and disparate projects cannot be combined in one proposition (i.e., streets and parks). He said a general obligation bond election is not confined to uniform election dates; however, a sales tax election would be. Mr. Leuschel said there is a 40 -year limitation on the repayment of GO bonds. He also discussed the possibility of using a note program if the propositions are approved by the citizens (although much analysis would have to be undertaken for that option to be available). And he discussed publication requirements, including the possibility of utilizing the city's Web site to publicize the election. City Attorney Bray then discussed regulations concerning sales tax elections. He noted that the question had been raised whether or not specific capital improvement projects can be financed with sales tax revenues. Mr. Bray said sales tax proceeds can be used for operation and maintenance expenses of the facilities. He said although staff would need to talk with the Attorney General's Office in more depth, they believe that the ballot proposition could be structured so as to separately present the projects under the auspices of a 4A corporation, which he further explained. Council Member Gonzales asked if the voters could be given a choice on where to locate an arena. Mr. Leuschel replied that the City of Laredo is considering the same issue. He said they will have to explore it with the Attorney General's Office before language can be presented to the voters. Mayor Neal referred to a summary of projected property tax rates prepared by Ms. Sullivan. He said that according to the column entitled "tax rate with 1% growth (cents per $100 of taxable value)," incorporating a $100 million bond election would substantially raise the tax rate in the out years. He asked whether the tax increase would be cut in half if the amount of the bonds were cut in half, and Ms. Sullivan replied that, approximately speaking, they would be. The Mayor pointed out that over the next several years the Council will have to make some major General Fund reallocations just to service existing debt. In light of the amount of existing debt, he questioned whether it would be viable to have a $50 million property tax program, and he suggested that a Minutes Regular Council Meeting October 12, 1999 Page 5 combination of property and sales tax financing methods may be more feasible. In reply to Council Member Scott, Mr. Leuschel and Mr. Bray further discussed legal issues related to a sales tax election. Council Member Kinnison asked what type of capital improvement program can be implemented without a bond election or tax increase, and Ms. Sullivan replied that it would be very minimal. Mr Kinnison said one of the charts prepared by the Finance Department indicates that for FY 2000-01, due to the city's debt structure, there will be a $4 million effect on the General Fund. Further discussion followed about the summary of projected property tax rates. Mayor Neal questioned what steps the Council will take next. Dr. Gonzales made a motion to instruct staff to continue to develop information for the Council and citizens regarding holding a combined property tax/sales tax bond election. The motion was seconded by Mrs. Longoria. Responding to Mr. Kinnison, Mr. Bray said that a combined property tax/sales tax election could be held in August or November 2000 (January 2000 would be too soon). City Secretary Chapa polled the Council for their votes on Dr. Gonzales' motion, and it passed unanimously. Mayor Neal said staff needed to provide the Council with additional information on the bond election so they can discuss it further next month. Mr. Garcia asked if the Council wanted staff to design the public participation process, and the Mayor said they should wait on that aspect of it. * * * * * * * * * * * * * Mayor Neal announced three closed sessions, pursuant to Texas Government Code Section 551.071, regarding the following: legal advice as to the contracts related to the Columbus Ships, with possible action thereon in open session; collective bargaining with Corpus Christi Firefighters Association, with possible action thereon in open session; and legal advice as to the contract with Nueces County and the Regional Transportation Authority for the Mobile Data Terminal/Automated Vehicle Location System, with possible action thereon in open session. The Mayor said the closed session would not be held regarding the following cases against the City of Corpus Christi et al in the United States District Court for the Southern District of Texas, Corpus Christi Division: William Bussey No. C-99-171, John Betz No. C-99-133, Arnulfo Guerrero, Jr. No. C-99-143, Mark Schauer No. C-99-144, Charles Bartels No. C-99-158, William Livingston No. C-99-159, Duane Pacheco No. C-99-168, and Gilbert Garcia No. C-99-170. The Council went into closed session. The Council returned from closed session. * * * * * * * * * * * * * Mayor Neal reconvened the Council meeting and read several proclamations that were listed Minutes Regular Council Meeting October 12, 1999 Page 6 on the agenda, including a presentation of gifts from Hagen, Germany by Council Member Cooper. The Mayor then referred to the board and committee appointments on the day's agenda, and the following appointments were made: C.C. Downtown Management District Willard Hammonds Sr. Nueces County Tax Appraisal District Clif Moss (Reappointed) Paul Grivich Sister City Committee Edna Brown Mayor Neal called for petitions from the audience. Port of Corpus Christi Authority Bernard Paulson (Reappointed) Ethics Commission Garry Bradford (Reappointed) Frank Tompkins II (Reappointed) Rev. Derrick Reaves ■ Mayor Glenn Martin, of the City of Port Aransas, addressed the issue of annexation of the four miles of Mustang Island located between the cities of Corpus Christi and Port Aransas. He said he wished to open the lines of communication so he can explain in detail at another time their plan for that area. He noted that beachfront property is very expensive to maintain and service; their city budget estimates it to be $100,000 per mile. He said due to their proximity to that area and the services that are already in place, Port Aransas is economically positioned to annex it at this time, and he said they could share revenues with Corpus Christi. He said a portion of the hotel/motel tax could go to the Convention and Visitors Bureau of Corpus Christi to promote area tourism; in addition, Port Aransas is willing to participate in the elevation of the JFK Causeway. Mayor Martin also discussed ways in which Mustang Island more closely identifies with Port Aransas. Ms. Jan Weaver spoke on behalf of a newly formed organization entitled Save Our Ships (SOS). She said their purpose is to see that the Nina, Pinta, and Santa Maria remain in Corpus Christi, showcased in the water, as historical sailing replicas, which represent the city's cultural heritage in accordance with the original Spanish philosophy and educational mission. She said the replicas provide educational opportunities, are of historical importance, and are important for tourism. She noted that they are the only three replicas in the world to have sailed across the Atlantic and to have duplicated Columbus' voyage. She said that with proper management, marketing, and displays, the ships can become viable. Mr. Ramon Hernandez, Co -Chairman of SOS, described how he became involved with the Columbus ships. He said they are determined to develop inclusive, grassroots support for the ships as they initially had when they were first brought to Corpus Christi. He said they are asking for time to develop a long-term plan to fund the ships and make the project successful. Minutes Regular Council Meeting October 12, 1999 Page 7 Mr. J.E. O'Brien, 4130 Pompano, referred to Mr. Leuschel's comments earlier in the meeting concerning voter -approved bonds for specific projects. He asked if Mr. Leuschel's comments reflect an illegal action regarding the Council's purchase of the CPL building for use as a police station. He said any future bond election will be a hard -sell for the Council. Council Member Scott pointed out that the CPL building purchase was made by a previous City Council. Mr. Jimmie Till, 6034 Lost Creek, said the people on Mustang Island near Port Aransas did not ask to be annexed by Corpus Christi. He suggested that Corpus Christi officials work with Port Aransas officials on the annexation issue and wait until the new annexation laws are passed. Ms. Janet Rice, 118 Southern St., said she was Chairperson of the Corpus Christi Quincentenary Commission which helped bring the Columbus ships to the city. She said the Columbus Fleet is a cultural activity with incredible potential, but if past mistakes are not learned from, the ships will not thrive and they should be returned to Spain. Dr. John Thom, 3061 S. Staples, proposed that a "Friends of the Fleet" organization be established to help fund the Columbus ships. He said he believes the money needed to pay off the ships' debt can be raised but the entire organization needs to run like a business. He asked the Council to ask the Spanish delegation for a 90 -day delay so they can raise the funds for the ships. Mr. Mike Baker, 4641 Gayle Circle, encouraged the Council to keep a close scrutiny on how the Wesley Seale Dam bond monies are utilized and how the dam repair work progresses. He said if that occurs, more than likely at the end of the project the city will have $3 million to $6 million left to use for utility projects or to help retire the dam bond debt. Mr. Abel Alonzo, 1701 Thames, criticized the operation of the Columbus ships under the direction of Mr. Alex Harris, saying the process was not inclusive and diverse. He said if the private sector wants the ships, the private sector should support them. Ms. Karen Heist, 3125 Catcay, said she and her son have been involved with the Columbus Fleet for 2'/2 years, including taking sailing school classes and deepening their appreciation of the history associated with the ships. * * * * * * * * * * * * * Mayor Neal called for consideration of the consent agenda (Items 4-20). Council members and audience members requested that Items 13, 14, 19, and 20 be withheld for discussion. City Secretary Chapa polled the Council for their votes and the following were passed: 4. M99-349 Motion approving the purchase of 1,000 galvanized sign posts, 500 yellow sign posts, and Minutes Regular Council Meeting October 12, 1999 Page 8 1,500 anchor sets in accordance with Bid Invitation No. BI -0013-00, from Northwest Pipe Company, Houston, Texas, based on the low total bid of $34,740. The posts and anchors will be used by the Traffic Division of the Street Services Department. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 5. M99-350 Motion approving a supply agreement with Bio -Aquatic Testing, Inc., Carrollton, Texas for biomonitoring in accordance with Bid Invitation No. BI -0173-99 based on low bid for an estimated annual expenditure of $16,010. The term of the supply agreement will be for twelve months with an option to extend for up to two additional twelve-month periods subject to the approval of the supplier and the City Manager or his designee. This biomonitoring testing will be performed for the six Wastewater Treatment Plants. Funds have been budgeted in FY 99-00 by the Wastewater Department. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 6. M99-351 Motion approving a supply agreement with Safe Tire Disposal, San Antonio, Texas for used tire disposal service in accordance with Bid Invitation No. BI -0176-99 based on low bid for an estimated annual expenditure of $75,900. The term of the supply agreement will be for twelve months with an option to extend for up to two additional twelve-month periods subject to the approval of the supplier and the City Manager or his designee. Funds have been budgeted by Solid Waste Services and Maintenance Services in FY99-00. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 7. M99-352 Motion approving the purchase of an inspection boat and trailer from Gulf Coast Marine, Inc., Corpus Christi, Texas to be used by the Water Department at the Wesley E. Seale Dam, based on low bid, in accordance with Bid Invitation No. BI -0015-00 for a total of $18,173. Funds have been budgeted by the Water Department for FY 99-00. 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 October 12, 1999 Page 9 8. M99-353 Motion authorizing the City Manager or his designee to execute a construction contract in the amount of $248,799 with Don L. Owen, Inc. of Balch Springs, Texas for the Gollihar Elevated Storage Tank Rehabilitation project. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 9. M99-354 Motion authorizing the City Manager or his designee to execute a construction contract in the amount of $505,415 with Texas Bridge of Humble, Texas for the Alameda Elevated Storage Tank Rehabilitation project. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 10. M99-355 Motion authorizing the City Manager or his designee to execute a contract for engineering services in the amount of $51,400 with Southern Ecology Management Inc. for environmental and regulatory services associated with the J.C. Elliott and Westside Landfills The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 11. M99-356 Motion authorizing the City Manager or his designee to execute Amendment No. 1 to the Engineering Services contract with Goldston Engineering, Inc. in the amount of $77,708 to expand the scope of services of the Laguna Madre Service Area Collection System Rehabilitation Project to include additional services for Closed Circuit Television Inspection. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 12. M99-357 Motion authorizing the City Manager or his designee to execute Amendment No. 2 to the engineering services contract with Urban Engineering, Inc. in the amount of $205,260 for the Broadway Service Area Collection System Rehabilitation project. Minutes Regular Council Meeting October 12, 1999 Page 10 The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 15.a. ORDINANCE NO. 023788 Ordinance appropriating $20,000 from the ClearSource, Inc., Franchise Application Fee in the No. 1020 General Fund to fund additional services of the Baller-Herbst Law Group, P.C. to assist the City of Corpus Christi in the cable television franchise granting and renewal process; amending Ordinance No. 023702, which adopted the FY 99-00 Budget by adding $20,000 to the No. 1020 General Fund. 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." 15.b. M99-360 Motion amending Motion M98-404 which authorized a professional services agreement with Adrian Herbst, the Bailer Herbst Law Group, P.C., to increase the estimated cost by $20,000 for additional services required in connection with the cable franchise application by ClearSource, Inc. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 16. RESOLUTION NO. 023789 Resolution authorizing condemnation proceedings by the City to condemn fee simple title to Lot 1R, Block 15, Edgewater Terrace Subdivision, from the owner, Leona Estes, to construct street and utility improvements as part of the Spur 3, Phase 2 project and for other municipal purposes. The foregoing resolution passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 17. RESOLUTION NO. 023790 Resolution authorizing the City Manager or his designee to apply for a grant of $133,900 from the State of Texas, Criminal Justice Division to fund a project to prevent minors from purchasing and consuming alcohol by using police officers on overtime. The foregoing resolution passed by the following vote: Neal, Colmenero, Cooper, Garrett, Minutes Regular Council Meeting October 12, 1999 Page 11 Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 18. ORDINANCE NO. 023791 Ordinance appropriating $8,000 from an anonymous donation in the No. 1020 General Fund to fund a basketball program at Ben Garza Gym; amending Ordinance No. 023702, which adopted the FY99-00 Budget by adding $8,000 to the No. 1020 General Fund. 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 opened discussion on Item 13, new landfill design phase services. Mr. J.E. O'Brien questioned the difference in the amount being appropriated ($769,213) and the amount being spent ($579,260). He also referred to the definition in the Comprehensive Annual Financial Report (CAFR) of the Public Health and Safety Bond Fund, which was related to the construction of a police station and Municipal Court facilities. He questioned what those facilities have to do with the landfill. Mr. Kevin Stowers, Acting Assistant Director of Engineering Services, said the additional funds being appropriated will be used toward the additional cost of the construction phase and materials testing contracts. Mayor Neal asked if the additional monies can be appropriated at a later date when they are needed, and Mr. Stowers replied that they can be. Responding to Mr. O'Brien's question about the bond fund, Ms. Sullivan said the CAFR mistakenly did not list several other bond issues that are part of the Public Health and Safety Bond Fund. Mr. Foster Edwards, representing the Corpus Christi Association of Realtors, said their organization is concerned about the lack of economic development in the city. He suggested that the Council aggressively look for interest monies that could be placed in an economic development fund. City Attorney Bray replied that interest on bond monies have to be spent for the bond purpose. Responding to Council Member Kinnison, Mr. Tom Utter, Assistant City Manager for Development Services, said the comprehensive plan for the new landfill and the closure of Elliott Landfill was brought to the Council in 1995, and each year since then a financing plan has been brought to the Council for minor modifications. He noted that the useful life of the Elliott Landfill has been lengthened, which has saved the city some money in preparation for the new landfill. Mr. Kinnison made a motion to amend the ordinance to appropriate $579,260 of interest earnings (rather than $769,213); seconded by Mr. Scott. City Secretary Chapa polled the Council for Minutes Regular Council Meeting October 12, 1999 Page 12 their votes on the motion to amend, and it passed unanimously. He polled the Council for their votes: 13.a. ORDINANCE NO. 023786 Ordinance appropriating $579,260 of interest earnings in the No. 3357 Public Health and Safety Bond Fund for the Cefe F. Valenzuela Landfill. An emergency was declared and the foregoing ordinance passed, as amended, by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 13.b. M99-358 Motion authorizing the City Manager or his designee to execute Amendment No. 7 for engineering services and assignment of contract to Shiner, Moseley & Associates, Inc. in the amount of $579,260 for design phase services for the Cefe F. Valenzuela Landfill. 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 14, IRS arbitrage rebate. Mr. J.E. O'Brien questioned whether this is the first year the city will start paying the arbitrage and whether it will be for years to come. He added that in the budget the interest earnings are not a true picture of the actual available revenue if the city has to pay the arbitrage. City Manager Garcia pointed out that part of the reason the city is having to pay arbitrage is due to the excess interest earnings from investing lower -yield municipal bonds into higher -yield taxable securities. Ms. Sullivan said the arbitrage is paid on every fifth anniversary date of the bonds. City Secretary Chapa polled the Council for their votes as follows: 14.a. ORDINANCE NO. 023787 Ordinance appropriating $139,121.58 from the Unreserved Fund Balance of the No. 4240 Capital Improvements Fund to pay the arbitrage rebate to the Internal Revenue Service; adding $139,121.58 to the No. 4240 Capital Improvements Bond Fund. 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." Minutes Regular Council Meeting October 12, 1999 Page 13 14.b. M99-359 Motion authorizing the City Manager, or his designee, to rebate $139,121.58 to the U.S. Treasury for the Series 1994A bonds issued for utility improvements as required by the Tax Reform Act of 1986, Section 148(F) of the Internal Revenue Code. 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, canine unit. Council Member Garrett asked if the $1,540 was to create an additional canine unit. Ms. Pat Eldridge, Management Assistant in the Police Department, said these funds are for expenditures not included in the General Fund. She added that in two months there will be a canine unit in operation through the Crime Control District. City Secretary Chapa polled the Council for their votes: 19. ORDINANCE NO. 023 792 Ordinance appropriating $1,540 in the No. 6010 Trust Fund - Police Canine Unit for Police Canine Unit expenditures; amending Ordinance No. 023702 which adopted the FY99-00 budget by adding $1,540 to the No. 6010 Trust Fund - Police Canine Unit. 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 opened discussion on Item 20, hospital zone. Council Member Scott asked if the ordinance approved by the Council on first reading included a reduction of the length of the hospital zone itself. Mr. David Seiler, Traffic Engineer, said it does include the reduction. City Secretary Chapa polled the Council for their votes as follows: 20. ORDINANCE NO. 023793 Amending the Code of Ordinances, Chapter 53 - Traffic, Article VIII - Schedules, Section 53-255, Schedule VI, amending the times for the Alameda Street Hospital Zone speed limit; providing for penalties. Minutes Regular Council Meeting October 12, 1999 Page 14 The foregoing ordinance passed on second reading by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal referred to Item 21, and a motion was made, seconded and passed to open the public hearing on the following right-of-way closure. He called for comments from the audience, and there were none. Council Member Scott made a motion to close the public hearing, seconded by Council Member Cooper, and passed. City Secretary Chapa polled the Council for their votes: 21. ORDINANCE NO. 023794 Ordinance closing and abandoning a 3,163 -square foot portion of San Antonio Street right- of-way north of the Alta Plaza Street right-of-way, between Lot 3, Block 2, Nolte Subdivision and Lot 10, Block 1, Alta Plaza Subdivision, subject to compliance with the specified conditions, and the owners, Brooke Sween -McGloin , Patrick McGloin, and Gene Spencer, replatting the property within 180 days at their expense. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Colmenero absent. * * * * * * * * * * * * * Mayor Neal referred to Item 22, and a motion was made, seconded and passed to open the public hearing on the following zoning case: 22. Case No. 999-2, Havley Builders Inc.: A change of zoning from an "R -1A" One -family Dwelling District to an "A-2" Apartment House District on Edgewater Terrace, Block 1, east half of Lot 9, located on the north side of Ocean Drive, approximately 500 feet west of South Alameda Street, City Secretary Chapa said the Planning Commission and staff recommended approval of the "A-2" Apartment House District. No one appeared in opposition to the zoning change. Council Member Garrett made a motion to close the public hearing, seconded by Council Member Scott, and passed. Responding to a question from Mr. Scott, Mr. Michael Gunning, Director of Planning and Development, said the adjacent property owners, Mr. and Mrs. Robinson, are opposed to the rezoning because they want to ensure that a quality development occurs on the subject lot as well as the vacant lots to the east. Council Member Betty Jean Longoria asked if there were any homes between the subject property and the restaurant on the comer. Mr. Gunning said there is one single-family residence on Minutes Regular Council Meeting October 12, 1999 Page 15 Lot 12-R to the east and two vacant lots next to the restaurant. He noted that Lots 10 and 11 are currently zoned "A-2" and the owner could build 25 units on those lots as a matter of right. However, the applicant's intention is to rezone the remaining half of Lot 9 and build a total complex of five units. Mr. Gunning added that Lot 9-A would have to be replatted and there is a minimum setback requirement of 10 feet from the adjoining property line. Mr. Chapa polled the Council for their votes: 22. ORDINANCE NO. 023795 Amending the Zoning Ordinance upon application by Hayley Builders, Inc., by changing the zoning map in reference to east half of Lot 1, Block 1, Edgewater Terrace from "R -1A" One - family Dwelling District to "A-2" Apartment House 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 referred to Item 23, and a motion was made, seconded and passed to open the public hearing on the following zoning case: 23. Case No. 999-3, William R. Hayward: A change of zoning from an "F -R" Farm -Rural District to a `B-4" General Business District on Wade Riverside Subdivision, 1.0 acre out of Section 4, located on the southwest corner of Northwest Boulevard (F.M. 624) and County Road 73. City Secretary Chapa said the Planning Commission and staff recommended approval of the "B-4" General Business District. No one appeared in opposition to the zoning change. Council Member Cooper made a motion to close the public hearing, seconded by Council Member Colmenero, and passed. Mr. Chapa polled the Council for their votes as follows: 23. ORDINANCE NO. 023796 Amending the Zoning Ordinance upon application by William R. Hayward, by changing the zoning map in reference to 1.0 acre out of Section 4, Wade Riverside Subdivision, from "F- R" Farm -Rural District to "B-4" General Business District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." Minutes Regular Council Meeting October 12, 1999 Page 16 * * * * * * * * * * * ** Mayor Neal referred to Item 24, and a motion was made, seconded and passed to open the public hearing on the following zoning case: 24. Case No. 999-4, Doddridge Associates Ltd.: A change of zoning from a `B-1" Neighborhood Business District to a "B-4" General Business District on United Savings Center, 1.033 acres out of Lot A, located on the northwest corner of Doddridge and South Alameda Streets. City Secretary Chapa said the Planning Commission and staff recommended approval of the "B-4" General Business District. No one appeared in opposition to the zoning change. Council Member Cooper made a motion to close the public hearing, seconded by Council Member Colmenero, and passed. Mr. Chapa polled the Council for their votes as follows: ORDINANCE NO. 023797 Amending the Zoning Ordinance upon application by Doddridge Associates, Ltd., by changing the zoning map in reference to 1.033 acres out of Lot A, United Savings Center from "B-1" Neighborhood Business District to "B-4" General Business District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." * * * * * * * * * * * ** Mayor Neal referred to Item 25, two zoning cases. City Secretary Chapa said the applicant had requested that the hearing be continued for one additional week. A motion was made, seconded and passed to open the public hearing on the following zoning cases: 25.a. Case No. 899-9, Chester C. Coker: A change of zoning from an "F -R" Farm -Rural District to an "I-2" Light Industrial District on Russell Farm Blocks, all of Lot 5 and portions of Lots 4 and 6, located on the east side of Heinsohn Road approximately 1,640 feet north of Bear Lane. 25.b. Case No. 999-10, Chester C. Coker: A change of zoning from an "F -R" Farm -Rural District and an "R -1B" One -family Dwelling District to a "B-3" Business District on Russell Farm Blocks, east 8.37 acres out of Lot 6, located on the southwest corner of Bates Drive and South Padre Island Drive. Minutes Regular Council Meeting October 12, 1999 Page 17 Council Member Colmenero made a motion to continue the hearing for one week, seconded by Council Member Scott, and passed. POSTPONED Amending the Zoning Ordinance upon application by Chcstcr C. Coker by changing the zoning m p in rcfcrcncc to L is 5 and 6 and thc west portion of Lot 4, J.C. Russell Farm Blocks from "F R" Farm Rural Di3triet and "R 1B" Onc Family Dwelling District to "B 3" amending thc Comprchcnsivc Plan to account for any deviations from thc cxi3ting Cemprekei.sive Plan. POSTPONED Amending thc Zoning Ordinance upon application by Chcstcr C. Coker, by changing the Zoning Map in reference to thc cast portion of Lot 6, J.C. Russell Farm Blocks from "F R" Farm Rural District and "R 1B" Onc family Dwelling District to "B 3" Business District; amending thc Comprchcnsivc Plan to account for any deviation from thc existing Comprchcnsivc Plan. Mayor Neal called for a brief recess. * * * * * * * * * * * * * With regard to Item 25, City Secretary Chapa stated that Council Member Gonzales had filed a disclosure affadavit and would be abstaining from discussing or voting on zoning cases No. 899-9 and No. 999-10. Mayor Neal then opened discussion on Item 26, consideration of city utility services re- engineering option. City Manager Garcia said the presentation was a continuation of an issue which began several months ago: determining how to proceed with privatization or re-engineering of the city's water and wastewater departments. During the initial presentation, the Council requested that staff provide more detailed information. He noted that another discussion will be held next week. Using a computer presentation, Mr. Garcia proceeded to discuss in detail his recommendation of pursuing a formal re-engineering effort for the water and wastewater departments for about 12 months. At the conclusion of that time, a plan would be adopted to issue a request for proposals for contracting operations and maintenance of selected system components. Mr. Garcia explained that he was recommending re-engineering for several reasons, including that it is a necessary first step; maximizes savings to rate -payers; preserves flexibility to respond to Minutes Regular Council Meeting October 12, 1999 Page 18 emerging priorities without incurring incremental cost; serves as a spingboard for city-wide improvements; and it is the most appropriate option in the city's situation. He said re-engineering has already begun to pay off and even greater dividends can be achieved from a formal effort. The City Manager noted that with re-engineering, the city can use the same cost -control techniques as the private firms. The advantage to the city is that those firms have, on average, an extra 25% burden due to profit demands, income taxes and sales taxes. He said that with re- engineering, all of the savings will accrue to the rate -payers and there is no cap on savings. In addition, a utility re-engineering effort becomes a city-wide improvement effort. Mr. Garcia then discussed the complex interrelationships among several city departments involving allocations and fees to other funds. The total annual allocations are approximately $17.5 million. With privatization, some costs are eliminated but fixed costs must be reallocated. As a result, the net annual impact on the General Fund is approximately $3.3 million. He explained that the driving force behind Corpus Christi's re-engineering effort is the potential for savings, while typical driving forces behind privatization include run down facilities, rapidly rising cost of operations and rates, compliance/quality/regulatory problems, difficulties in finding qualified staff, and lack of a capital improvement program. Mr. Garcia said the city's re- engineering work has begun to pay off in that total costs have been flat despite stricter permits, more stringent regulations, and increased capacity, which he explained. He also discussed cost- containment strategies that are currently in place and several personnel issues that are being examined. Mr. Garcia pointed out that the goal of re-engineering is to maximize savings and value for rate -payers. Specific objectives include: continue to reduce costs through more efficient operations in the water and wastewater departments and throughout city departments; provide rate -payers with 100% of the benefits achieved; maintain or improve current key service levels; retain flexibility to respond to city-wide priorities; and ensure that adequate resources are available to maintain systems. Mr. Garcia said the plan for formally re-engineering the water and wastewater utilities involves analyzing services, formally examining all processes, and evaluating and implementing "best practices" for all functions. He said staff is proposing that the city hire a consultant to guide the re-engineering process and, after one year (in about November 2000), begin developing an RFP and a draft contract/service agreement for the O.N. Stevens Water Treatment Plant and the Whitecap Wastewater Treatment Plant. Finally, in May 2001, the city would evaluate the responses to the RFPs and make an award. He said that in order to proceed with the re-engineering process, staff is recommending hiring the firm of EMA at a base cost of $270,000. If the city opted to have EMA provide "coaching" to city staff (intensive one-on-one employee training), it would cost an additional $30,000 per month for no more than 12 months, for a possible maximum amount of $630,000. Minutes Regular Council Meeting October 12, 1999 Page 19 Mr. Ed Garafia, Water Superintendent, and Mr. Foster Crowell, Wastewater Superintendent, then proceeded to answer several questions from Council members about specific aspects of their respective departments, including number of personnel, actual costs versus budgeted costs, cost- cutting efforts, and other issues. Mr. Ron Massey, Assistant City Manager for Public Works and Utilities, also further discussed specific utilities operations and Ms. Nancy Lerner, of EMA, addressed questions regarding services that would be provided by her firm and costs associated with those services. She and Mr. Garcia noted that re-engineering is an involved process from the personnel standpoint, which they discussed. Responding to Council members' questions, Mr. Garcia referred to the utility rates, saying that staff hopes to revise those rates downward; he noted that most of the increases were for the capital improvement program. Mayor Neal asked about the Stormwater Department, and Mr. Garcia explained that Stormwater was not included, which he explained. He said he believes the competitive process is the most effective way to ensure that the rate -payers are receiving the best value. He said in order to provide an accurate comparison between what it costs the city to operate its utility versus what it costs the private sector to operate it, the city should go through the re-engineering process. In reply to another question, City Attorney Bray explained that basically the utility system purchases services from the General Fund and the other funds. He said the reason the Charter provision was enacted was to keep the General Fund from charging franchise fees and fees in lieu of taxes; if an option is characterized in that way, it may not comply with the Charter. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 27, ClearSource franchise. He said the City Attorney had asked that Item 27.c. be withdrawn and brought back in two weeks. There were no comments from the audience. Council Member Kinnison asked if the proposed ClearSource franchise would have any type of adverse effect on an eventual contract with TCI Cablevision (AT&T). Mr. Adrian Herbst, the city's consultant regarding the cable franchise renewal, said he did not think so, adding that they have gone to great lengths to ensure that there is a level playing field. He said that is the reason there are two documents --a master ordinance and a franchise agreement. Mr. Kinnison noted that the ClearSource agreement provides for a 5% franchise fee, and he asked if TCI's fee will also be 5%; Mr. Herbst replied affirmatively. Responding to another question from Mr. Kinnison, Mr. Herbst said the franchise fee would apply to anything that comes under the umbrella of "cable service," which is carefully defined. In addition, the gross revenue definition is very broad --stating that income is income from whatever source derived. The agreement also has attached a franchise fee payment worksheet that has to be updated periodically. Mr. Kinnison asked what TCI's current percentage is, and Mr. Herbst replied that it is 4%, which generates approximately $1 million each year. Minutes Regular Council Meeting October 12, 1999 Page 20 Mr. Herbst went on to say that the city has been working on the cable franchise renewal process for some time through a specially formed committee, which in January has been developing a master cable ordinance and a model franchise agreement. He said those documents were almost completed when ClearSource approached the city about having their application considered. Mayor Neal and Mr. Kinnison said ClearSource's plans constitute a major infrastructure improvement, and they welcomed ClearSource to the community. City Secretary Chapa polled the Council for their votes as follows: 27.a. FIRST READING ORDINANCE Granting to ClearSource, Inc. a non-exclusive franchise to construct, maintain, and operate for a period of one year, a cable television system and facilities and additions thereto, in, under, over, along, across, and upon the streets, lanes, avenues, alleys, sidewalks, bridges, rights-of-way, easements, highways and other places in the City of Corpus Christi, Texas. 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. 27.b. FIRST READING ORDINANCE Granting to ClearSource, Inc. a non-exclusive franchise to construct, maintain, and operate for a period of fifteen years, and during any extensions thereof, a cable television system and facilities and additions thereto, in, under, over, along, across and upon the streets, lanes, avenues, alleys, sidewalks, bridges, rights-of-way, easements, highways and other places in the City of Corpus Christi, Texas. 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. 27.c. POSTPONED Establishing a Master Cable Services Regulatory Ordinaziee-geraei„ing use of city st.eets, * * * * * * * * * * * * * Mayor Neal opened discussion on Item 28, Municipal Court technology fee. Minutes Regular Council Meeting October 12, 1999 Page 21 Ms. Barb Sudhoff, Director of Municipal Court, said the Texas Legislature recently approved the development of a technology fund for Municipal Courts. She said the Legislature allowed up to $4 per conviction and staff's recommendation is to charge the $4 on all convictions excluding parking citations. She said the fee is to finance the purchase of technological enhancements to improve the efficiency of the Court. Without the technology fee, such expenditures would have to come from the city's General Fund. She said Corpus Christi's Court is the first in the state to have done electronic routing of cases. She briefly explained specific technology enhancements the Court can utilize. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 28. FIRST READING ORDINANCE Establishing a Municipal Court Technology Fund; providing for the assessment and collection of a four dollar Municipal Court Technology fee as a cost of court; providing for severability; providing for publication and effective date of December 1, 1999; and providing for expiration date of September 1, 2005. The foregoing ordinance passed on first reading by the following vote: Neal, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Colmenero absent. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 29, Municipal Court security fee. Ms. Sudhoff explained that the Municipal Court Building Security Fund was approved by the Council in 1995, and when the Court absorbed the parking function, it had the ability the charge the $3 security fee on parking citations. However, the Municipal Court Committee concluded that the security fee should not be charged on parking citations. Consequently, the ordinance needed to be revised. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 29. FIRST READING ORDINANCE Amending Section 29-48, Municipal Court Building Security Fund and Security Fee as cost of court, to exclude parking citations and to provide that such fund may be used to finance continuing education on security issues for court personnel; providing for publication and effective date. The foregoing ordinance passed on first reading by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." Minutes Regular Council Meeting October 12, 1999 Page 22 * * * * * * * * * * * * * Mayor Neal opened discussion on Item 30, art grant to support restoration of the Pompeo Coppini sculpture located at Schatzel and Lower Broadway Streets. Mayor Neal called for comments from the audience, and there were none Council Member Scott noted that the Coppini sculpture was a favorite of the late George Brown. City Secretary Chapa polled the Council for their votes: 30. ORDINANCE NO. 023798 Ordinance appropriating a $14,300 grant from the Save Outdoor Sculpture! Heritage Preservation organization in the No. 1030 Hotel Occupancy Tax Fund - Arts Projects, to support restoration of the Pompeo Coppini sculpture located at Schatzel and Lower Broadway Streets; amending Ordinance No. 023702 which adopted the FY 99-00 budget, by adding $14,300 to the No. 1030 Hotel Occupancy Tax Fund- Arts Projects. 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 the City Manager's report. Mr. Garcia distributed copies of the draft disparity study and said the Council was scheduled to discuss it next week. He noted that the signs for the Cesar Chavez Memorial Parkway are ready and will be installed on October 15th. Also, a joint meeting between the City Council and the Nueces County Commissioners Court is scheduled for October 13th. Fire ChiefJ.J. Adame updated the Council on negotiations with the Firefighters Association. He explained that this session was limited in scope to three issues: EMS certification and re- certification, call-backs for overtime, and the assessment center for promotion to the rank of captain (which was taken off the table by mutual agreement). Chief Adame then described the background and results that were reached on the first two items. Mr. Garcia said the association is ready to go to its membership with the proposed agreement. Mr. Utter then described plans for infrastructure improvements in the Rodd Field Village area, in which Council Member Kinnison has been involved. Mr. Escobar gave the quarterly status report on the 1986 street bond program and FY 1999-2000 TIP projects. Mr. Escobar also stated that the MPO Policy Committee approved the city's request for a TIP amendment, which resulted in the city receiving almost $8 million for the Leopard Street project (Phases 1, 2 and 3). He noted that the Council had previously authorized staff to borrow $4.3 million from the State Infrastructure Bank for Leopard Street, Phase 3, but this recent action means the city will probably only have to borrow about $1 million. Mayor Neal thanked city staff and the members of the MPO for their support. Minutes Regular Council Meeting October 12, 1999 Page 23 Mayor Neal asked about an update on parks, and Mr. Garcia said the report will be ready October 13th. The Mayor then called for Council concerns and reports. Mrs. Longoria said there needs to be a discussion about developing Garcia Park. Dr. Gonzales said that next week he will be bringing two donations for the animal control department and the Humane Society. He also said there are several areas where brush has not been picked up for some time, particularly in the Kostoryz-Horne-Brawner Parkway -Ayers areas. Mr. Garcia said the brush from the hurricane has been picked up and the crews are on a six-week cycle. A discussion ensued. Mr. Longoria said a vendor expressed concern about receiving timely payment from the city. Mr. Garcia replied that when the systems were converted from one type of computers to another, it did take some time to get back on schedule. He said he believes the city is fairly current with its payables and they are working to get them on 30 -day schedules. Mr. Longoria asked if the disparity study discussion could be delayed due to scheduled functions next week. There was a consensus to postpone it to the November 9th Council meeting. In response to a question from Mr. Kinnison, Mr. Massey said street crews have been leveling Everhart Road and they will be putting a seal coat on it from SPID past Snowgoose Drive. Mr. Kirmison asked when the audited financial statements will be delivered. Mr. Jorge Garza, Assistant City Manager for Administrative Services, replied that it will be at the end of November or early December. Mr. Kinnison also expressed concem about excessive brush in Wooldridge Creek Subdivision, and he asked about the status of a new golf course. Mr. Garcia said they are looking into a public/private joint venture and staff will give a presentation next week. Mr. Colmenero commented on brush problems in the Ayers-Kostoryz-Home-Gollihar areas, and he requested an update on the sports complex and the CDBG funds. Mr. Garrett said a citizen complained that his water was mistakenly cut off and he was told by a city staff member that that is a frequent occurrence. Mr. Garza said it happens occasionally but not frequently. Responding to another question from Mr. Garrett, Mr. Garcia said the city does not charge for brush being dumped at the landfill by residents who bring their utility bill. Mr. Scott asked when the Council will discuss its goals, and Mayor Neal replied next week. Mr. Scott also discussed the issue of FHA insurance on new homes. Mr. Garcia explained that there is a national policy that discourages the construction of new residential homes on barrier islands. Mr. Scott also asked about the city's lobbyists in Austin. Mr. Utter said the city's lobbyists will be tracking several issues in the Senate committees, including annexation. Mayor Neal pointed out that the Texas Municipal League will develop interim legislative areas of concem that they will forward to member cities, at which time the City Council can develop its own interim policies for its lobbyists. Minutes Regular Council Meeting October 12, 1999 Page 24 Mrs. Longoria commented on letters the Council had received regarding funding for Arts and Cultural Commission subgrants. Mayor Neal said they had responded to Mr. Bonilla's letter in writing. Mr. Garcia explained that the arts funding process is very involved and often divisive, which he explained. He said that for a variety of reasons, several members of the arts community now feel that if they did not receive their full funding from the Arts and Cultural Commission, they have the opportunity to receive it by appealing directly to the Council members. The ACC recommendations are scheduled to come before the Council on October 26th. There being no further business to come before the Council, Mayor Neal declared the Council meeting adjourned at 7:05 p.m. on October 12, 1999. * * * * * * * * * * * * *