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HomeMy WebLinkAboutMinutes City Council - 03/20/2001I 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 March 20, 2001, which were approved by the City Council on March 27, 2001. WITNESSETH MY HAND AND SEAL, this 27th day of March, 2001. Armando Chapa City Secretary SEAL INDEXED MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting March 20, 2001 2:07 p.m. PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Betty Jean Longoria Council Members: Javier D. Colmenero* Henry Garrett Dr. Arnold Gonzales Rex A. Kinnison John Longoria Mark Scott ABSENT Melody Cooper City Staff: City Manager David R. Garcia Deputy City Manager George Noe 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 Pastor Alston Kirk, Trinity Lutheran Church, following which the Pledge of Allegiance to the United States flag was led by Council Member Betty Jean Longoria. 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 March 13, 2001. A motion was made and passed to approve the minutes as presented. Mr. Chapa stated that due to a family emergency, Mr. Colmenero would be arriving late to the meeting. Mr. Chapa also said that Item 15 (Frost Bank lease) and Item 17 (executive session) had been withdrawn by staff. * * * * * * * * * * * * * Mayor Neal called for petitions from the audience. Mr. Jack Gordy, 310 Norton St., said that in November 2000 the city sent the Regional Transportation Authority a letter stating that signs on bus benches affected by the Highway Beautification Act were illegal. Mr. Gordy questioned when those violations will be dealt with. Mr. Trian Serbu, 14310 Playa del Rey, said that 12 years ago there was a successful petition drive to rescind an ordinance creating Packery Channel, and in 1999 another plan involving Packery Channel was defeated by the voters. He said Packery Channel and the development of that area of Padre Island are two separate issues. Mr. Serbu added that the project is an enhancement to one private developer at the public's expense. He urged the Council to not eliminate the public beach, adding that they can help the developer build his project if they wished. Minutes - Regular Council Meeting March 20, 2001 Page 2 Mr. J.E. O'Brien, 4130 Pompano, corrected a figure he had estimated during his comments last week. He said the unrestricted fund balance of the Combined Utilities Fund is approximately $52 million and he reiterated his request that the Council consider a refund or reduction in the utility rates. Mr. O'Brien also questioned staff's information which stated that San Antonio has a higher cost of gas than Corpus Christi. He added that Senate Bill 274 prohibits hospital districts in Harris and Bexar counties from participating in tax increment finance zones, and he questioned why Corpus Christi's bond sale was conducted yesterday instead of today after the drop in interest rates. He also requested a copy of the official statement on the bond sale. Mr. R.F. Hasker, 1813 Wallace, referred to different points of view in the San Antonio Express-Newsand the Corpus Christi Caller -Times regarding the Packery Channel project. He said the local newspaper cited a poll in which 49% of those surveyed said they supported Packery Channel, which he criticized. Mr. Hasker added that if dredged, the channel will fill in again. Council Member Gonzales said the Caller -Times poll was scientifically conducted. Mr. Phil Rosenstein praised the opening of the new senior center connected to the Garden Center on Greely Street. He said activities are available to seniors 50 years and older and the meal programs are intended for those 60 and older. He said it is possible that Corpus Christi has the most senior centers among Texas cities. ************* Mayor Neal referred to the presentations on the day's agenda. The first presentation (Item 2) was made by Mr. Billy Parks, District Engineer for the Texas Department of Transportation (TXDOT) Corpus Christi District Office, regarding regional transportation plans. Referring to a map of significant corridors through the Corpus Christi District, Mr. Parks first discussed the hurricane evacuation routes of Highways 188, 181 and 123, which are completely separate from the evacuation route on IH -37. Also, he said the San Patricio County Judge is working to have a parallel route designated as part of the strategic military highway system. Mr. Parks also discussed the Texas trunk system, which is comprised in the Corpus Christi area of U.S. 59 and State Hwy. 44. He said a delegation will be making a presentation to the Texas Transportation Commission next week earmarking those routes, with special emphasis on relief routes around Alice and Robstown. He said the goal is to provide a non-stop through route from the Port of Laredo to the Port of Corpus Christi. Mr. Parks also discussed the 1-69 corridors, which consist in this area of U.S. Hwys. 59, 281 and 77. He noted that at this time there are no funds for any interstate construction. Regarding local projects, Mr. Parks said that TXDOT will be letting a contract in May for the Crosstown -Padre Island interchange and in the fall they will be letting the JFK/Park Road 22 project. He then responded to Council members' questions. City Manager Garcia noted that Mr. Parks is planning to retire this summer and the Council thanked Mr. Parks for his cooperation and diligence in improving transportation projects in this area. T Minutes - Regular Council Meeting March 20, 2001 Page 3 The second presentation (Item 3) was regarding the city's FY00-01 second quarter financial performance report and five-year financial forecast. Mr. Mark McDaniel, the city's new Director of Management and Budget, used a computer presentation to discuss several financial issues. He said FY00-01 revenues and expenditures remain at projected levels: $198.6 million in revenues for all funds and $159.8 in expenditures. In the General Fund, the year-to-date revenues are $73 million or 57% of the total budgeted revenue of $128.3 million, and expenditures are $56.5 million or 45% of the total budget of $126 million. Mr. McDaniel then discussed the following specific major revenues in the General Fund: ad valorem property taxes, $25 4 million (which represents a decrease from the budgeted amount); industrial district, $5.3 million (an increase); sales tax, $15.9 million (a decrease); CPL franchise fee, $4.7 million (an increase); telecommunication fee, $1.08 million (a decrease); cable television franchise, $565,715 (an increase); Solid Waste Services, $9.4 million (a decrease); and Municipal Court fees, $1.8 million (an increase). Mr. McDaniel said the revenues in the enterprise funds were as follows: water, $32.1 million (same as budgeted); gas, $17 million (an increase); and wastewater, $15.3 million (an increase). *Council Member Colmenero arrived at 3:10 p.m. Mr. McDaniel explained the percentage of expenditures that have been made in the following funds: General Fund, 45%; enterprise funds, 42%; internal service funds, 44%; and special revenue funds, 41%. He said there were no significant variances in those funds through the second quarter. Mr. McDaniel and Mr. Garcia also responded to Council members' questions. Mr. Noe then discussed the city's five-year financial forecast. He said the FY00-01 re - estimate highlights include reduced sales tax revenues, lower solid waste landfill fees, and higher electric franchise revenues due to higher natural gas prices. He said the revenue assumptions used for the forecast were: 2.55% annual increase in the property tax; 3% annual growth in the sales tax on a lower base; Senate Bill 7 becoming effective in January 2002, which will affect Central Power and Light franchise fees; landfill revenues will continue to be reduced due to tonnage losses; and an average 2% growth in other revenues. Mr. Noe said the expenditure assumptions were: no salary increase; 10% annual increase in group health insurance; 5% annual increase in power, light and heat; 4% annual increase in fuel and lubricants; and 2.5% annual increase in all other expenditures. Mr. Garcia explained that the five- year forecast represents what it will cost the city to maintain its current level of service; i.e., no program improvements or new initiatives. However, the Council will have some flexibility in the future to make expenditure decisions, including regarding salary increases. He added that a large portion of employees are covered by collective bargaining agreements, which will involve negotiations with the unions. He said that for planning purposes, no salary increases are budgeted. Mr. Noe also reviewed the financial and reserve policies that the Council approved last year: a target of 5% of total expenditures to be reached within five years; designation of unanticipated, one-time revenues and budget surpluses to meet that goal; and annual planning and conservative Minutes - Regular Council Meeting March 20, 2001 Page 4 budget practices. Using the assumptions previously discussed, he said staff is projecting that the General Fund closing fund balance will increase about $800,000 each year as follows: FY00-01, $6.8 million; FY01-02, $7.4 million; FY02-03, $8.2 million; FY03-04, $9.4 million; FY04-05, $11.3 million; and FY05-06, $14 million. Mr. Noe said while the city's financial situation has improved over last year's, there are still areas of concern and the Council has to set its priorities. Mayor Neal said that once the Council receives the revenue and expenditure figures at the end of the third quarter, they will be better prepared to make decisions about the FY01-02 budget. Mr. Noe responded to Council questions. Mr. Garcia introduced Mr. Jeffrey Kaplin, new Director of Solid Waste Services, who briefly addressed the Council. * * * * * * * * * * * * * Mayor Neal deviated from the agenda and opened discussion on Item 13, bond sale. Mr. Jorge Cruz-Aedo, Director of Financial Services, said that many of the city's bond decisions are based on the timing of capital project financing and cash flow requirements. He added that the city's bond sale yesterday was probably affected more by a Houston school district's bond sale than by any other market conditions. Mr. Cruz-Aedo then described specific aspects of Corpus Christi's two series of bonds. The first (Series 2001) consists of $30.8 million of "new" money for the bond projects approved by the voters last November and $8.35 million of refunding par for a total of $39.15 million. He said that action will save the city $254,277 over the remaining life of the bonds. Series 2001A are general improvement refunding bonds with a par amount of $11.34 million for a savings of $788,085. Mr. Cruz-Aedo said these refundings take advantage of the current lower interest rates and do not extend the life of the bonds. He also discussed the bond's ratings. Mayor Neal called for public comments. Mr. Abel Alonzo said he wished Mr. O'Brien was still present at the:meeting. He said in addition to the city saving so much money, it also improved its credit rating. City Secretary Chapa polled the Council for their votes as follows: 13.a. ORDINANCE NO. 024398 Ordinance providing for the issuance of General Improvement and Refunding Bonds, Series 2001, of the City of Corpus Christi, Texas, in the aggregate principal amount of $39,150,000 and bearing interest at the rates hereinafter set forth, and providing for the levy, assessment and collection of a tax sufficient to pay the interest on said bonds and to create a sinking fund for the redemption thereof at maturity; repealing all ordinances in conflict herewith; and providing that this ordinance shall be in force and effect from and after the date of its passage. An emergency was declared and the foregoing ordinance passed: Neal, Colmenero, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. A Minutes - Regular Council Meeting March 20, 2001 Page 5 13.b. ORDINANCE NO. 024399 Ordinance providing for the issuance of General Improvement Refunding Bonds, Series 2001A (December 2001 delivery) of the City of Corpus Christi, Texas, in the aggregate principal amount of $11,340,000 and bearing interest at the rates hereinafter set forth, and providing for the levy, assessment and collection of a tax sufficient to pay the interest on said bonds and to create a sinking fund for the redemption thereof at maturity; repealing all ordinances in conflict herewith; and providing that this ordinance shall be in force and effect from and after the date of its passage. An emergency was declared and the foregoing ordinance passed: Neal, Colmenero, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. ************* Mayor Neal called for consideration of the consent agenda (Items 4-11). Council members requested that Item 7 be discussed. City Secretary Chapa stated that Item 9 needed to be amended. There were no comments from the audience. Mr. Chapa then polled the Council for their votes: 4. M2001-107 Motion approving a supply agreement with Perfection Corporation, Madison, Ohio, for approximately 1,050 Anodeless Service Risers, in accordance with Bid Invitation No. BI - 0085 -01 based on low bid for an estimated annual expenditure of $15,169.50. The term of the contract 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 the Gas Department in FY00-01. The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. 5. M2001-108 Motion approving a supply agreement with the following companies for the following amounts for approximately 143,000 feet of polyethylene pipe and 5,080 fittings in accordance with Bid Invitation No. BI -0086-01 based on low bid for an estimated annual expenditure of $134,301.43. The terms of the contracts will be for twelve months with an option to extend for up to two additional twelve-month periods subject to the approval of the suppliers and the City Manager or his designee. Funds have been budgeted by the Gas Department in FY00-01. Gajeske, Inc. Cummins Utilities Supply Grand Total: San Antonio, TX Forth Worth, TX $134,301.43 Group 1 & 2 Group 3 $116,435.83 $17,865.60 Minutes - Regular Council Meeting March 20, 2001 Page 6 The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. 6. M2001-109 Motion authorizing the City Manager or his designee to execute a construction contract with Insituform Technologies Inc. for a total fee not to exceed $273,460 for the Oso Water Reclamation Plant Yard Piping Replacement. The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. 8. RESOLUTION NO. 024393 Resolution authorizing the City Manager or his designee to submit a grant application in the amount of $625,000 to the U.S. Department of Justice, Office of Community Oriented Policing Services for funding available under the COPS MORE 2001 program with the city providing the required 25% match of $156,250 available through the Law Enforcement Trust Fund. The foregoing resolution passed by the following vote: Neal, Colmenero, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. 10. ORDINANCE NO. 024395 Ordinance authorizing and allowing under the act governing the Texas Municipal Retirement System, "Updated Service Credits" in said system on an annual basis for service performed by qualifying members of such system who at the effective date of the allowance are in the employment of the City of Corpus Christi; providing for increased prior and current service annuities for retirees and beneficiaries of deceased retirees of the City; establishing an effective date for the ordinance. The foregoing ordinance passed on second reading as follows: Neal, Colmenero, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. 11. ORDINANCE NO. 024396 Ordinance amending the Code of Ordinances, City of Corpus Christi, by revising Article XII, Water Conservation, Chapter 55, Utilities, to establish automatic water conservation measure, to codify the rules governing drought contingencies and establishing permanent water conservation measures, and to direct an operations plan for the reservoir system; amending the Water Conservation and Drought Contingency Plan by deleting the references to specific reservoir levels in Section 2.1 of the Drought Contingency Plan; amending the Water Conservation and Drought Contingency Plan by repealing Section 2.2 of the Drought T Minutes - Regular Council Meeting March 20, 2001 Page 7 Contingency Plan; revising and clarifying certain other provisions of Article XII of Chapter 55; providing for penalties; providing for severance. The foregoing ordinance passed on second reading as follows: Neal, Colmenero, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. * ************ Mayor Neal opened discussion on Item 7, police services for the Housing Authority. Responding to Council Member Garrett, Ms. Pat Eldridge of the Police Department stated that they work with the Housing Authority to set the police officers' hours and there are certain performance measures that have to be met for the grant. City Secretary Chapa polled the Council for their votes: 7. M2001-110 Motion authorizing the City Manager or his designee to execute an addendum to the contract with the Housing Authority of the City of Corpus Christi (Authority) to extend the supplemental police services provided by the Corpus Christi Police Department until all available grant funds of $125,176 have been expended. The foregoing motion passed 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 9, technology grant. City Secretary Chapa stated that the resolution needed to be amended to change the grant amount from $180,000 to $145,213. Mr. Scott made a motion to amend the resolution as stated, seconded by Mr. Longoria, and passed (Cooper absent). Mr. Chapa polled the Council for their votes on Item 9 as follows: 9. RESOLUTION NO. 024394 Resolution authorizing the City Manager or his designee to apply for a $145,213 Technology Opportunity Program grant from the U.S. Department of Commerce to install web -based kiosks in public places which will provide individuals with access to city and other public services and information. The foregoing resolution passed, as amended, as follows: Neal, Colmenero, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. * * * * * * * * * * * * * Mayor Neal referred to Item 12, and a motion was made, seconded and passed to open the public hearing on the following zoning case: Minutes - Regular Council Meeting March 20, 2001 Page 8 12. Case No. 0101-03. A.J. and M.C. Ramos Partners. Limited: A change of zoning from an "R - 1B" One -family Dwelling District to a "B-4" General Business District on 3.707 acres out of Lot 5, Section 28, Flour Bluff and Encinal Farm and Garden Tracts, located on the southeast corner of Ennis Joslin Road and the McArdle Road extension. City Secretary Chapa said the Planning Commission and staff recommended approval of the "B-4" General Business District on the north 1.272 acres and denial of the "B-4" District on the south 2.435 acres, and in lieu thereof, approval of a "B-1" Neighborhood Business District. No one appeared in opposition to the zoning change. Dr. Gonzales made a motion to close the public hearing, seconded by Mr. Colmenero, and passed. Mr. Chapa polled the Council for their votes: ORDINANCE NO. 024397 Amending the Zoning Ordinance upon application by A.J. and M.C. Ramos Partners, Limited by changing the zoning map in reference to 3.707 acres out of Lot 5, Section 28, Flour Bluff and Encinal Farm and Garden Tracts, from "R -1B" One -family Dwelling District to "B-1" Neighborhood Business District on Tract A and "B-4" General Business District on Tract B; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. An emergency was declared and the foregoing ordinance passed: Neal, Colmenero, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 14, expressway interchange lighting. Mr. Angel Escobar, Director of Engineering Services, stated that this project was approved by the voters last November and it consists of the city's 50% share of the cost for the lighting at the SPID/Crosstown interchange. There were no comments from the audience. Responding to Mr. Kinnison, Mr. Escobar said this project uses all the approved funds. City Secretary Chapa polled the Council for their votes: 14. M2001-111 Motion authorizing the City Manager or his designee to execute an Advance Funding Agreement with the State of Texas, acting through its Texas Transportation Commission, setting forth responsibilities for the reconstruction of the existing continuous highway lighting at the intersection of the Crosstown Expressway (51-1 286) at the South Padre Island Drive (SH 358) Expressway Interchange and its approaches as a part of the Texas Department of Transportation's Crosstown Extension/South Padre Island Drive Interchange Construction Project, and authorizing the deposit of $500,301.85 with the Texas Department of Transportation as the City's share of construction costs. The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. Minutes - Regular Council Meeting March 20, 2001 Page 9 15.a. WITHDRAWN M„ tien authelizing thc City-Mat.agcr or his designee to amend thc existing lease agrccment I�latie,.al Bank. 15.b. WITHDRAWN Ordinance rcappropriating $458,410 from thc Frost National Bank Lcasc Purchase 15.e. WITHDRAWN ••• is • - 00:0: purchase agreement in thc Cenral Fund No. 1020, amending Ordinance No. 024130 which adoptcd thc FY00 01 Budgct by iae.easing both revenues and appropriations by $500,000 15.d. WITHDRAWN ************* Mayor Neal recessed the regular meeting for the meeting of the Corpus Christi Community Improvement Corporation. Upon reconvening the regular meeting, the Mayor called for the legislative update. Assistant City Manager Tom Utter said the legislative session is half over, and several of Corpus Christi's priority issues are moving ahead, including the change to the city's crime control district, spaceport funding, estuary diversion, interbasin transfer of desalination water, child legislative fee, fire control and prevention district, and the hotel/motel tax. Mr. Utter also discussed HB 2686 (Item 18.a.), which strengthens the tax incentives for enterprise zones, and FIB 2411 (Item 18.b.), which adopts a uniform residential building code for the state. Mr. Kinnison made a motion to approve Item 18.a., seconded by Mr. Colmenero. Mayor Neal called for a voice vote and the item passed as follows: T Minutes - Regular Council Meeting March 20, 2001 Page 10 18.a. RESOLUTION NO. 024391 Resolution supporting legislation by State Representative Solis that provides tax incentives for certain businesses located in Enterprise Zones, Defense Readjustment Zones, and certain federally designated zones. The foregoing resolution passed by the following vote: Neal, Colmenero, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. Mr. Garrett made a motion to approve Item 18.b., seconded by Mr. Colmenero. The item passed as follows: 18.b. RESOLUTION NO. 024392 Resolution supporting legislation by State Representative Ritter that adopts a uniform residential building code for the state. The foregoing resolution passed by the following vote: Neal, Colmenero, Garrett, Gonzales, Kinnison, 13. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. Mr. Longoria requested additional information on SB510 regarding bidding alternatives. * * * * * * * * * * * * * Mayor Neal called for the City Manager's report. Mr. Garcia said the Council will have a joint meeting with the board of the Crime Control and Prevention District on March 27th beginning at noon. In addition, there will be no Council meeting on April 3rd but on that date there will be the rededication of Wesley Seale Dam. The Mayor then called for Council concerns and reports. Mr. Colmenero asked if there were any problems with the Metrocom unit receiving non- emergency calls. Mr. Garcia said he will look into that and provide a report. Mr. Kinnison asked the Council to direct staff to bring back the proposal for the formation of the Rodd Field Improvement District. He said more than a majority of the property owners in that area were in favor of the proposed improvements. Mr. Garcia explained that the basic infrastructure improvements supported by the property owners would not by themselves meet the current city requirements, although they would be better than what is in place now. A discussion ensued and Mayor Neal directed staff to bring that issue back before the Council. Mr. Scott said he wanted to make sure that staff was bringing back the resolution in support of relief transportation routes around the cities of Alice and Robstown. There being no further business to come before the Council, Mayor Neal adjourned the Council meeting at 5:00 p.m. on March 20, 2001. n