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HomeMy WebLinkAboutMinutes City Council - 05/29/2001I 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 May 29, 2001, which were approved by the City Council on June 12, 2001. WITNESSETH MY HAND AND SEAL, this 12th day of June, 2001. Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting May 29, 2001 2:00 p.m. PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Henry Garrett Council Members: Brent Chesney Javier D. Colmenero Bill Kelly Rex A. Kinnison John Longoria Jesse Noyola Mark Scott City Staff: City Manager David R. Garcia Deputy City Manager George Noe City Secretary Armando Chapa Assistant City Attorney Jay Reining 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. Les Chaney, Lexington Baptist Church, and the Pledge of Allegiance to the United States flag was led by Council Member Scott. 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 joint and regular Council meetings of May 22, 2001. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * * * * Mayor Neal called for consideration of the consent agenda (Items 2-9). Council members requested that Items 2 and 7 be discussed. There were no comments from the audience. City Secretary Chapa polled the Council for their votes and the following were passed: 3. M2001-202 Motion approving the purchase of Internet Protocol telephone/data equipment from Southwestern Bell for the total amount of $28,919.73 in accordance with the State of Texas Cooperative Purchasing Program. The equipment will be used at the Police Training Academy/Corona Assembly Point. Funds are provided through the Police Department General Fund Budget. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 4.a. M2001-203 Motion authorizing the City Manager or his designee to increase the escrow amount with the Minutes - Regular Council Meeting May 29, 2001 Page 2 Texas Department of Transportation in the amount of $122,594.37 as part of the Kostoryz Road Improvements (from Holly Road to Saratoga Boulevard) construction contract in accordance with the Advanced Funding Agreement. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 4.b. M2001-204 Motion authorizing the City Manager or his designee to increase the escrow amount with the Texas Department of Transportation in the amount of $64,822.06 as part of the Airline Road Improvements, Phase 2 (from Wooldridge Road to Saratoga Boulevard) construction contract in accordance with the Advanced Funding Agreement. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 4.c. M2001-205 Motion authorizing the City Manager or his designee to increase the escrow amount with the Texas Department of Transportation in the amount of $115,859.68 as part of the McArdle Road, Phase 1 Improvements Project (from Weber Road to Everhart Road) construction contract in accordance with the Advanced Funding Agreement. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 5. M2001-206 Motion authorizing the City Manager or his designee to execute Change Order No. 2 with Insituform Technologies, Inc. for a total fee not to exceed $46,480, for a total restated fee not to exceed $341,340 for sewer line rehabilitation. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 6. M2001-207 Motion authorizing the City Manager or his designee to execute Change Order No. 12 in the amount of $38,618.74 with Fulton Construction/Coastcon Inc., a joint venture for the Corpus Christi International Airport Terminal Construction Project. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Minutes - Regular Council Meeting May 29, 2001 Page 3 8. ORDINANCE NO. 024465 Ordinance authorizing the City Manager or his designee to execute a lease terminating September 30, 2001, with an option to renew annually through September 30, 2015 with the U.S. Department of Transportation, Federal Aviation Administration (FAA) granting the lease of a 0.209 acre tract, a 0.029 acre tract, and a 15 foot utility easement, constituting a portion of Overland Meadows Park, for the establishment and maintenance of the Runway 13 Outer Marker, in consideration for the FAA maintaining the leased premises. The foregoing ordinance passed on second reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 9. ORDINANCE NO, 024466 Ordinance authorizing the City Manager or his designee to execute a five year lease agreement with the Corpus Christi Police Officer's Association (CCPOA) to lease the Centennial Museum for the purpose of operating a Youth Athletic/Boxing Program in consideration for CCPOA ensuring that access to and participation in the program remains open to the general public. The foregoing ordinance passed on second reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 2, ambulance purchase. Responding to Council Member Garrett, Fire Chief J.J. Adame said this is a large -module ambulance, which is the same type as the other six ambulances; the smaller ambulances will be used as reserves. City Secretary Chapa polled the Council for their votes as follows: 2. M2001-201 Motion approving the purchase of one ambulance from the Houston -Galveston Area Council of Governments (HGAC), for the total amount of $128,996.53. The award is based on the cooperative purchasing agreement with HGAC. The ambulance will be used by the Fire Department. This unit is a replacement; funds are available through the Capital Outlay Fund. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 7, Youthbuild grant. Responding to Council Member Kelly, Mr. Norbert Hart, Director of Housing and Community Development, explained that the Minutes - Regular Council Meeting May 29, 2001 Page 4 participants will be recruited from the school district, community groups and the Worforce Network. He said the project focuses on seven census tracts, all of which are eligible for Community Development Block Grant funds and which have a high rate of school drop -outs and poverty. He said once the homes are built, they will be sold as affordable housing as part of the department's affordable home -buyers program. He added that the program will serve 40 students. In reply to Council Member Kinnison, Ms. Patricia Garcia, Intergovernmental Relations, said that entities which are contributing in-kind services are Corpus Christi Independent School District, Workforce Network, Workforce Development Board, and others. Mr. Hart said that a board of directors will oversee the program, while the day-to-day supervision will be provided by the Housing and Community Development Department. In addition, the students at the work site will be supervised by the Workforce Development Center. Mr. Longoria asked if this is a competitive grant, and Mr. Hart and Ms. Garcia replied affirmatively. Mr. Hart said if the grant application is approved, staff will come back to the Council to allocate the funds and provide more information about the program. Council Member Colmenero agreed that more information is needed. City Secretary Chapa polled the Council for their votes: 7. RESOLUTION NO. 024464 Resolution authorizing the City Manager or his designee to submit a grant application to the U.S. Department of Housing and Urban Development in the amount of $400,000 for a youthbuild grant to provide youth between the ages of 16-24 the opportunity to earn a Graduation Equivalence Degree, receive training in construction, and build homes for low- income families. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * A motion was made, seconded, and passed to open the public hearing on the Corpus Christi Crime Control and Prevention District proposed FY 2001-02 budget (Item 10). Mr. Leon Loeb, President of the Board, said this is the final full -year budget within the district's five-year cycle. Mr. Loeb said the proposed budget includes funding for 50 police officers, with the academy for the final 10 officers to begin in April 2002. He said the budget was prepared assuming a sales tax projection of 3% and a 3% cost -of -living increase for sworn officers. Mr. Loeb then described specific aspects of the proposed budget. Compared to the original staffing levels in the Juvenile Assessment Center, the budget was reduced by two case managers and a part-time counselor. He said they are anticipating receiving grants to fund those positions. The police overtime is being eliminated and three juvenile processing officers will be added to provide security at the center. The school/police partnerships have been eliminated from the district's budget, and the Citizen Advisory Councils' budget was increased by $41,000 to cover one-time projects, Minutes - Regular Council Meeting May 29, 2001 Page 5 boarding up abandoned buildings, lamination of street signs to make them graffiti -resistant, and funds for meetings. Mr. Loeb explained that the Directed Patrol Program is being combined with the DARE program, which will result in a total of about 18 directed patrol officers (one for each Citizen Advisory Council). He said the budget includes $99,000 to add three marked vehicles and $88,000 to upgrade the existing DARE officers' vehicles with laptop computers and locator systems. Mr. Loeb said the crime control district is allocating $75,000 to match the city's grant for a mobile community substation; $19,000 to expand the video imaging system; and $4,800 to add emergency lights to the crime scene vans. Mr. Loeb said this proposed budget is also a preparation for the crime control district's Year 6 balanced budget (FY 2003-04). To accomplish that, the FY 2001-02 budget includes reductions of positions that have not yet been filled, including two dispatchers and two crime scene technicians. Mr. Loeb said after the crime control board approved this budget, the Department of Management and Budget provided revisions, which he described. He said the board will meet again to amend their budget prior to the Council's action on it. Responding to Council Member Kinnison, Mr. Mark McDaniel, Director of Management and Budget, said the cost for the election (approximately $100,000) is included in the crime control's budget. Ms. Pat Eldridge, of the Police Department, said the mobile community substation will cost approximately $225,000, of which $150,000 will be provided by a law enforcement block grant. Police Chief Pete Alvarez described staffs plans for the DARE program, which he said is not being eliminated, contrary to reports. He said police staff, including Commander David Torres, have been communicating with school district officials about their proposal, which entails utilizing both DARE and directed patrol officers in implementing the DARE program in both the elementary and middle schools. The Police Chief also discussed their planned use of the mobile community substation and the directed patrol officers. Chief Alvarez and Ms. Eldridge responded to questions from Council Member Scott. Ms. Eldridge said the budget includes funds for four additional vehicles for the 10 new police officers and eight new cars for the DARE officers. Council Member Longoria asked about the three juvenile processing officers at the Juvenile Assessment Center. Mr. Loeb and Ms. Eldridge replied that they are similar to the marshals in that they will be sworn peace officers who will have arrest powers to sit with the juveniles who are brought to the center. Mr. Dan Whitworth, Assistant Director of Park and Recreation, said the center is open during the summer for management of cases processed by the court and for curfew violations. In addition, some of the schools in the city limits operate year-round. Mr. Longoria requested additional case management information. Chief Alvarez, Mr. Loeb and Ms. Eldridge also responded to other questions from Mr. Longoria. Responding to Council Member Kelly, Mr. Loeb said the school district reimburses the city for the operation of the DARE program and the goal of this proposal is to redirect some of those funds so they can be used for directed patrol as well as for drug education. Cmdr. Torres said that Minutes - Regular Council Meeting May 29, 2001 Page 6 currently only CCISD and West Oso ISD participate in the DARE program, but the city will offer the visitation component of the program (in the 2nd and 4th grades) to all the school districts. Mr. Loeb said that at the board's next meeting they will consider a proposal to purchase radar units for all the patrol cars. Council Member Colmenero asked about the Citizen Advisory Council (CAC) projects, which Mr. Loeb explained. Cmdr. Torres said that currently there are eight CACs in operation. He added that at this time there are five full-time DARE officers and they are proposing converting three of those to directed patrol. Responding to other questions from Mr. Colmenero, Ms. Eldridge said there are five crime scene vans. Chief Alvarez also further discussed the mobile community substation and the number of dispatchers. In reply to Council Member Noyola, Mr. Loeb said the board's meetings are generally held in the Basement Training Room of City Hall. Mayor Neal called for comments from the audience and there were none. Council Member Chesney made a motion to close the public hearing, seconded by Council Member Kelly and passed. * * * * * * * * * * * * * Mayor Neal referred to the presentations on the day's agenda. The first presentation (Item 11) was regarding the seawall reconstruction project (with related action items 14.a., 14.b., 15.a. and 15.b.). Mr. Jeff Massengill, of Shiner, Moseley and Associates (SMA), said the seawall was designed and built in 1939 and 1940 and it has only received limited repairs over the last 60 years. A thorough investigation of the structure was conducted from March 1998 -November 1999 and voters approved funds for the reconstruction in November 2000. Mr. Massengill noted that the seawall is about two miles long and provides about 50% of the overall downtown flood protection system. He said the project is divided into five areas: art museum bulkhead - 210 feet in repair length; north reach - 4,020 feet; marina - 3,600 feet; T -Heads and L - Head - 3,460 feet; and McGee Beach - 1,500 feet. Mr. Massengill and Mr. Angel Escobar, Director of Engineering Services, described the 210 -foot area by the art museum that will be repaired. Mr. Massengill also referred to a cross-section diagram of the seawall structure, which consists of a concrete apron/sidewalk, concrete steps, concrete pile cap, three timber piles, and a steel sheet pile wall in front to retain the earthen fill. Mr. Massengill said that SMA's study found evidence of timber pile decay, voids, sheet piling corrosion, and cracks, spalls and chloride migration in the concrete, which has resulted in a deterioration of the seawall's strength. He said SMA's recommended repairs include driving new, continuous sheet pile walls both in front of and in back of the seawall; placing concrete infill between the old and new sheet piles; installing a new concrete pile cap and a hydrostatic relief system; filling the voids under the structure; and constructing a new concrete cap and sidewalk along Shoreline Drive. He said the repairs are being designed so as to accommodate a future overlay. Responding to Council Member Garrett, Mr. Massengill said there are two components in the budget for architectural enhancements, which have not yet been designed. Council Member Minutes - Regular Council Meeting May 29, 2001 Page 7 Colmenero asked about the longevity of this repair project. Mr. Massengill said it is safe to say that it will last 60 to 75 years. Council Member Kelly asked about the timber piles, which Mr. Massengill explained. He noted that the new steel sheet piles will replace the existing load -carrying timber piles. Mr. Kelly also asked how the repair process will affect adjacent properties. Mr. Massengill said they expect to close the parking lane next to the seawall during construction and they do not intend to halt the work during hurricane season. Mr. Jim Shiner explained that the repair process entails adding elements (steel sheet piles) to the structure --the only elements that will be removed will be parts of the sidewalk, which will be replaced. Mr. Massengill added that the construction will occur in 100 -foot segments so the integrity of the seawall will not be compromised. Mr. Massengill also gave an overview of the construction schedule, which will be initiated in April 2002. He said the schedule is designed so as to have a minimal impact on the construction of the new arena. In addition, they will obtain the U.S. Army Corps of Engineers permit for the entire project at the outset. Mr. Massengill also discussed aspects of the pilot program. Responding to Mayor Neal, Mr. Massengill further described the art museum bulk head repair work. Mr. Scott asked about possible uses for the $1.5 million in architectural/aesthetic enhancements. Mr. Massengill said many suggestions have been made, including possibly segregating a portion of the seawall for specific uses (such as roller-blading) or installing decorative bulb -outs and bench areas Mr. Longoria said that last week the designers of the arena and convention center discussed master plans for that area which need to be coordinated with the seawall project. Mr. Garcia pointed out that at this time there is no direct funding for the street improvements and median changes that the architects discussed last week; their specific charge is to build an arena and to renovate the convention center. Mayor Neal called for comments from the audience on Item 14 and there were none. City Secretary Chapa polled the Council for their votes as follows: 14.a. ORDINANCE NO. 024467 Ordinance advancing $257,000 from the No. 3480 Storm Water CIP Fund, advancing $354,000 from the No. 4080 Water CIP Fund, and advancing $54,000 from the No. 3280 Park CIP Fund, to and appropriating in the No. 3270 Seawall CIP Fund to begin the Seawall Repairs project approved in the Special Election on November 7, 2000; to be reimbursed with interest; amending Ordinance No. 024162 which adopted the FY00-01 Capital Budget by adding $665,000 to the No. 3270 Seawall CIP Fund. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 14.b. ORDINANCE NO, 024468 Ordinance rescinding Ordinance No. 024366 which appropriated $900,000 from the Seawall Minutes - Regular Council Meeting May 29, 2001 Page 8 Improvements Fund; and which transferred $900,000 to and appropriating in the No. 3270 Seawall CIP Fund. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." There were no comments on Item 15. Mr. Chapa polled the Council for their votes: 15.a. M2001-208 Motion authorizing the City Manager or his designee to execute Amendment No. 5 in the amount of $581,000 with Shiner Moseley and Associates, Inc. for the Pilot Seawall Reconstruction Project (Contract A) and Seawall Reconstruction Project B-1. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 15.b. M2001-209 Motion authorizing the City Manager or his designee to execute a geotechnical and materials testing contract in an amount not to exceed $79,602 with Fugro South Inc. (Gulf Coast Testing Laboratory) for the Pilot Seawall Reconstruction Project (Contract A) and Seawall Reconstruction Project B-1. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." ************* The second presentation (Item 12) was regarding suggested revisions to the city ordinance governing the renaming of public streets. City Secretary Chapa explained that the current process, which was established by ordinance in 1969 (with minor revisions in 1974 and 1988), calls for a $25 fee if all affected owners are not signed to the application. In other words, if every owner of property on a street concurs with a street name change, there is no fee. Mr. Chapa said there is a significant amount of staff time spent on the street renaming process, including research of property owners, determining historical significance, mailing out notices, setting up public hearings and publishing legal notices, as well as requesting input from the Police Department, Fire Department and Post Office. Consequently, in 1994 the City Council adopted a policy by which the Council has declined to change the names of streets except under "unusual, extenuating circumstances." He said that since 1994, four street name changes have been approved, some of which were controversial and others which were well -supported. However, they continue to be burdensome and he said staff is suggesting that the Council revisit their policy and recommend revisions to the street renaming ordinance. T Minutes - Regular Council Meeting May 29, 2001 Page 9 Using a computer presentation, Mr. David Seiler, City Traffic Engineer, further discussed the current policy and ordinance and possible revisions. He noted that only a person who resides on the street or owns a business on the street can submit an application to change the name. He said if the applicant pays the $25 fee, he does not have to do any research or circulate a petition for the street name change; thus, those tasks have to be performed by city staff. He said this process often results in the Council conducting a public hearing on a street name change with very limited knowledge of any public support or opposition to the change. Mr. Seiler said staff is suggesting revising the procedure to establish a three -tiered renaming process involving the application, survey, and approval. In the proposed application process, staff is suggesting that a proposed street name change serve a recognized purpose; i.e., that it be of local, regional, statewide or national significance. He said city staff may suggest street name changes to clarify the city's street network. In addition, staff is suggesting that name changes not be allowed on streets included in the 1852 plan established by Col. Kinney (generally in the downtown area). If the petition is regarding one of those historical streets, the application would be denied. Mr. Seiler said the next step would be to notify the applicant of an initial staff review and research fee of $500. If the applicant proceeds to submit the application with the fee, staff is then required to conduct research, including preparing a strip map of the affected street section; identifying the affected property owners to be contacted; and identifying the amount of the processing fee for staff to mail out the survey forms. He said that processing fee would have to be paid within 10 working days of notification to the applicant. In the survey process, Mr. Seiler said the survey would have to be mailed within 10 working days following the payment of the processing fee. Property owners would be given an additional 10 working days to respond to the surveys, which would then be compiled by city staff. He said staff is suggesting that at least 51% of the property owners (not tenants) be supportive of the street renaming, and non -respondents would be counted as being non -supportive of the proposal. He said if the surveys meet those requirements, the City Manager would notify and receive comments from representatives of several entities and schedule a public hearing. The City Secretary would notify the property owners of the hearing date and prepare a notice for publication. During the public hearing, three-fourths of the Council members would have to approve the street renaming in order for it to occur, and if so, the city would absorb the cost of changing the street names. Mayor Neal said he thinks staffs suggestions address many of the problems with the current street renaming process. He added that he thinks the approval by at least 51% of property owners should be higher, such as 75%. Mr. Garcia noted that non -respondents would be counted as being non -supportive. Council Member Colmenero said the $500 fee may also be too low. Council Member Kinnison asked if all property owners' surveys would carry the same weight, and Mr. Garcia said they would. Mr. Kinnison said that 75% might be too high and he suggested 60%. Council Member Scott said he thought the applicant should be required to pay the cost of changing the street signs. Council Member Chesney asked about the processing fee amount. Mr. Seiler replied that it would vary depending on the number of property owners that would have to be 1 Minutes - Regular Council Meeting May 29, 2001 Page 10 contacted for the survey. Mr. Chesney suggested that that fee include a per parcel cost as well as the cost of the employees' time. Responding to another question from Mr. Chesney, Mr. Garcia said the city has received several calls from people wanting to rename streets and staff has informed them about the Council's policy not to rename streets except under unusual circumstances. Mr. Chapa said that currently if they submit the $25 fee, staff is obligated to go through the process and bring that request before the Council. Council Member Longoria questioned why the revisions are being proposed. Mr. Garcia replied that most people are discouraged when they are informed about the Council's policy regarding renaming streets. However, others are not discouraged and the Council is ultimately put in a position of not knowing how much support or opposition there is to a street renaming proposal. The burden falls on staff to provide the Council with that information, which is difficult. Council Member Noyola expressed support for staff's proposed revisions. Mayor Neal directed staff to bring back formal proposed revisions to the ordinance with the changes they suggested (75% majority and requiring the applicant to pay for the street signs). * * * * * * * * * * * * * Mayor Neal opened discussion on Item 16, natural gas supply contract. Ms. Deborah Marroquin, Gas Superintendent, explained that the city issued a request for proposals (RFP) for 100% of the city's natural gas supply with either a single supplier or multiple suppliers (as long as all five systems are served). Those five separate systems, which are not interconnected, are Corpus Christi, Annaville/Calallen, Padre Island, Country Creek/King Estates, and farm taps. Ms. Marroquin said the current contract expires July 1, 2001 and the term of the new contract is two years with an option to extend for three, one-year periods. Ms. Marroquin said the proposals received and their corresponding prices (converted to the monthly Houston Ship Channel Index with price margins) were El Paso Reata (the current supplier): HSCI + $.98; Houston Pipe Line: HSCI + $.28; and National Energy and Trade (NET): HSCI + $.20. She noted that Houston Pipe Line, which only bid on the Corpus Christi and Annaville gas systems, would have to install facilities worth $1.36 million; NET's proposal had $2.26 million worth of infrastructure improvements to establish new delivery points. Ms. Marroquin said the evaluation criteria were price, deliverability, facility acquisitions, gas quality, marketing proposals, and references. She said that based on that criteria, staff selected National Energy and Trade as their first choice to provide 100% of firm supply and on -demand natural gas. She said the $2.26 million will be paid in the form of a reservation fee in 36 equal payments. In addition, the city will experience a savings of approximately $7.2 million because the proposed capital improvement projects would have paralleled the Pantex pipeline for seven miles. The Gas Superintendent said the city will retain 50% of capacity rights on the entire 22 -mile Pantex pipeline after the contract expires, as well as ownership of land and pressure and measurement equipment at two of the three new delivery points. In addition, the city will have back- up delivery in Flour Bluff. Minutes - Regular Council Meeting May 29, 2001 Page 11 Responding to questions from Mayor Neal, Ms. Marroquin said the $2.26 million is not only for the Pantex line but also for the interconnects at the three delivery points that have been established and for transportation costs. The Mayor asked why the city does not just buy the Pantex pipeline. Ms. Marroquin replied that the Pantex line is a transmission line and the city is involved in the distribution of gas. Also, the Pantex requires much more maintenance and contains higher pressures than the city's crews are familiar with. City Manager Garcia said the city is essentially buying the transmission capacity inside the Pantex line. Council Member Kinnison asked how staff evaluated whether NET's proposal provided a fair price. Ms. Marroquin replied that the city hired a consultant, Navigant, which has expertise in that area. She added that using the monthly HSCI pricing conversion is less volatile than a daily price. She said the proposal contains an option for a fixed price. In reply to Council Member Noyola, Ms. Marroquin reiterated that with the NET contract, the city will be able to defer many of its gas capital improvement projects, which results in a savings of $5 million over four years. Mr. Noyola asked where NET is located, and Ms. Marroquin said the principals are in Houston and they have a Corpus Christi representative. Council Member Colmenero asked specific questions about the proposals, which Ms. Marroquin addressed. She noted that eventually all the gas systems will be connected. In response to Council Member Chesney, she described the process staff and the consultant used in evaluating the proposals, specifically NET's proposal. Mr. Noyola asked if city employees would be affected by this contract, and Ms. Marroquin said they would not be. Responding to Mayor Neal, Ms. Marroquin said NET will purchase the Pantex pipeline. Mr. Garcia said that pipeline contains six to seven times more pressure than the city's residential pipelines, which is why the city is not buying the Pantex line. Ms. Marroquin also described connections in the Country Creek area and the other systems. In reply to Mr. Kinnison, she said that after the five-year contract expires, the city has an option to take perpetual 50% capacity of the Pantex line at a cost of $.10/MMBTU. Mr. Garcia added that use of the Pantex line increases the city's ability to access other systems. Council Member Kelly asked if the 50% capacity in the Pantex line is sufficient to meet the city's needs. Ms. Marroquin said it is more than adequate because of the line's pressures. Mayor Neal asked what would be the pressure of a 16 -inch pipeline. Ms. Marroquin said the city would operate that line at approximately 150 pounds per square inch. The Mayor called for public comment. Mr. J.E. O'Brien asked if the proposed contract is better than the current contract for ratepayers and if there are any protections built into it to prevent situations similar to what California is experiencing. Ms. Marroquin replied that the rate that will be effective August 1st is 41/2 cents less in MCF than the current rate. She said Corpus Christi ratepayers will not experience the problems of California ratepayers. Mayor Neal pointed out that there are no caps in this program. City Secretary Chapa polled the Council for their votes as follows: 7 Minutes - Regular Council Meeting May 29, 2001 Page 12 16. RESOLUTION NO. 024463 Resolution authorizing the City Manager or his designee to execute a five-year natural gas supply, transportation, and facilities construction contract with National Energy and Trade, LLC, for the purchase of 100% of the City's natural gas requirements to begin on July 1, 2001 and expire on July 1, 2006. The foregoing resolution passed by the following vote: Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Neal voting "No." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 17, CYD program. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 17. M2001-210 Motion approving the submission of the FY2001-2002 Community Youth Development Programs in the amount of $500,000 to the Texas Department of Protective and Regulatory Services as recommended by the 78415 Community Youth Development Steering Committee. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Garrett absent. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 18, juvenile court. There were no comments from the audience. Responding to Council Member Kelly, Ms. Barbara Sudhoff, Director of Municipal Court, said they hope to have the court in place by August 1st. Council Member Longoria asked about the hiring of the part-time judge. City Secretary Chapa said the Council would appoint the judge as soon as the funds are made available and the position is created. Mr. Longoria asked Ms. Sudhoff to provide more information to the Council's Municipal Court Committee. In reply to Council Member Chesney, Ms. Sudhoff said the creation of the juvenile court is one more way to provide comprehensive juvenile information both at the county level and at the Municipal Court level. She said the new court will allow case workers at the Juvenile Assessment Center to work with juveniles and their families over a 90 -day period in conjunction with other entities. She said the court will handle such offenses as truancy, curfew, minor -in -possession and disorderly conduct violations. Mr. Chapa polled the Council for their votes as follows: 18.a. M2001-211 Motion authorizing the City Manager or his designee to accept a grant in the amount of Minutes - Regular Council Meeting May 29, 2001 Page 13 $146,790 from the State of Texas, Office of the Governor, Criminal Justice Division for funding eligible under the FY2001 Juvenile Accountability Incentive Block Grants Program and to execute all related documents to establish a Juvenile Court within Municipal Court. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 18.b. ORDINANCE NO. 024469 Ordinance appropriating $146,790 in the No. 1050 Federal/State Grants Fund from the State of Texas, Office of the Governor, Criminal Justice Division and transferring $16,310 from No. 1020 General Fund and appropriating it in the No. 1050 Federal/State Grants Fund as matching grant funds to establish a Juvenile Court within Municipal Court. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 19, dredging shoaled areas in the marina. The Mayor said he would like the city to apply for this grant but he would like additional information. Mr. Tony Cisneros, Director of Park and Recreation, said the proposal is to both dredge the shoaled areas as well as use that dredged material to restore the Sunfish Island Wildlife Sanctuary. Mr. Cisneros said the project's design will occur if the city receives the grant. Council Member Colmenero asked if bird viewing sites would be located on Sunfish Island, and Mr. Cisneros said they would not be; rather, they would be located along the seawall adjacent to the marina. He added that without a restoration effort, Sunfish Island is in danger of breaking apart into two segments. He said Corpus Christi is competing against other coastal communities for these funds through the Coastal Impact Assistance Program. Responding to Council Member Scott, Mr. Cisneros said the deadline for the grant proposals is May 31, 2001. Mr. Scott said the Council was having to consider this grant application very close to the deadline and he said there are other projects of a higher priority than this one. Mr. Cisneros said the marina has never been dredged since it was built and half of the entrance is unusable due to the shoaling that has occurred. Council Member Kinnison asked staff to keep the Council informed about grants they are pursuing in case the Council wishes to provide input prior to the grant deadlines. There were no comments from the audience. City Secretary Chapa polled the Council: 19. RESOLUTION NO. 024470 Resolution authorizing the City Manager or his designee to submit a Coastal Impact Assistance Program Grant Application to the Texas General Land Office in the amount of $2,000,000 for dredging shoaled areas within the marina. Minutes - Regular Council Meeting May 29, 2001 Page 14 The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Mayor Neal called for a brief recess. * * * * * * * * * * * * * Upon reconvening, Mayor Neal called for petitions from the audience. Mr. Lonnie Laningham, 4713 Alma, said he was present at last week's meeting to hear the presentation about the new arena and convention center expansion. He commented that it is important for the city to build a 10,000 -seat arena to accommodate activities there for years to come. He suggested that in order to ensure adequate funds to build the arena, the city find a philanthropist to contribute monies, go back to the voters for more money, or sell Memorial Coliseum. Mr. J.E. O'Brien, 4130 Pompano, said he was not present to voice his opposition to Item 14.a. regarding the seawall repair project. He said advanced funds must be transferred and the City Charter prohibits the transfer of monies from the Utilities Fund. He also said the Council made a decision during their recent retreat to change the Council meeting public comment time. He said historically a retreat has been referred to as a workshop and the Charter prohibits decisions at workshops. He said the change in the public comment time should be made in a proper manner. Mr. O'Brien added that Item 20 is long overdue. Mayor Neal asked City Secretary Chapa if he and the City Manager have the authority under the Charter to set the agenda and whether either one of them can move the public comment time during any given meeting. Mr. Chapa replied affirmatively, adding that the City Secretary's Office also has the authority to change the order of the agenda. He said the Council retreat was properly posted as a meeting and not a workshop and the Council made decisions about their priorities. In addition, he said the minutes for the retreat have not yet been written because staff was waiting for the report from the facilitator. Mr. Jack Gordy, 310 Norton St., said the city has been accepting bribes from Cooper Outdoor Advertising allowing them to violate a city ordinance and state law with their signs on certain bus benches. He said the city sent a letter to the Regional Transportation Authority (RTA) about that issue in November 2000 but nothing else has been done. Responding to Mayor Neal, Assistant City Attorney Reining said the RTA makes a payment to the city for the use of the city's right-of-way, based on a percentage of the RTA revenues collected through advertising on the bus benches. Ms. Elia Alaniz, 6530 Lyons St., said that on May 23rd her dogs escaped from her fenced yard and she found them at the city's dog pound but she has to pay $180 because city staff said they attacked a cat, which she contests. City Manager Garcia asked Ms. Alaniz to speak with Mr. Ron Massey, Assistant City Manager for Public Works and Utilities, about her concerns. Mr. Joe De La Garza updated the Council regarding an investigation that is ongoing. Minutes - Regular Council Meeting May 29, 2001 Page 15 Mayor Neal opened discussion on Item 20, franchise fee audits. There were no comments from the audience. Responding to Council Member Noyola, Mr. Jorge Cruz-Aedo, Director of Financial Services, said the request for proposals (RFP) included a requirement that the firm have actual experience auditing electrical companies and telephone providers. He said the low bidder (Fields, Nemec & Company) did not have that experience and proposed contracting the service with someone else. He said staff is recommending Competitive Communications Group (CCG), which has hands- on experience in Texas, specifically in South Texas. Mr. Noyola expressed concern that Fields & Nemec is a local firm as well as being the low bidder and they are not being recommended. Mr. Cruz-Aedo replied that this is very specialized work and staff received very few responses. Council Member Chesney asked if staff spoke to Fields & Nemec about this proposal. Mr. Cruz-Aedo said a representative from the local office admitted that they had no experience doing this type of work and they introduced staff to another party who would assist them. He reiterated that the RFP specifically asked for experience conducting this type of audit. Mr. Chesney said he agreed with Mr. Noyola that this contract is an opportunity to utilize a local company. City Manager Garcia said the third respondent, DMG-Maximus Inc., which bid $65,004, has the most experience in this area; CCG is also knowledgeable, although they do not have the same depth of experience, and their bid was $21,000; Fields & Nemec, which does not have experience in this area, bid $13,200. Mr. Garcia said the franchise fee revenues from Southwestern Bell and Central Power and Light are a key part of the city's ability to sustain several General Fund activities. Council Member Kinnison said he understood that Fields & Nemec was willing to pay someone to help them perform this audit if they received the contract. He said he did not believe the requirements of the contract were very complex, and he questioned what would have happened if Fields & Nemec had had someone with that experience on their staff. Mr. Cruz-Aedo said he believes the committee would still recommend CCG because they have several individuals on staff with the necessary experience. Mr. Kinnison said he does not support staffs recommendation. In reply to Council Member Longoria, Mr. Cruz-Aedo said that during the last audit several years ago, about $46,000 was found during the audit of Southwestern Bell and about $80,000 was found during the CPL audit. Council Member Kelly asked whether Fields & Nemec could be instructed to go back and expand the parameters of an audit (if they were selected to conduct it) if staff felt it was incomplete. Mr. Garcia replied that the result of a poor quality audit by inexperienced auditors will be that the city will not get the revenue to which it is entitled. Mr. Cruz-Aedo added that there is no way staff could validate whether the audit captured all the revenue. Mr. Garcia said demonstrated experience is one way the city ensures the best value for the taxpayers' investment. Responding to Council Member Colmenero, Mr. Cruz-Aedo said CCG has performed audits of CPL and SWB in other communities, which rated the company very high in their quality of service. Additional discussion ensued. Minutes - Regular Council Meeting May 29, 2001 Page 16 City Secretary Chapa polled the Council for their votes on Item 20 to execute a contract with Competitive Communications Group. The motion failed to pass by the following vote: Longoria and Scott voting "Aye"; Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, and Noyola voting "No." Mr. Kinnison made a motion to award the contract to Fields, Nemec & Company, seconded by Mr. Kelly. Mr. Chapa polled the Council for their votes as follows: 20. M2001-212 Motion authorizing the City Manager or his designee to execute a contract with Fields, Nemec & Company in the estimated amount of $13,200 to perform franchise fee audits on Central Power and Light Company and Southwestern Bell. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 21, cafeteria plan administration. Mr. Cruz-Aedo explained that when the city attempted to finalize the contract with Ceridian Company, it did not meet the requirements of the request for proposals it had said it would. Consequently, staff is asking that the motion executing the contract with Ceridian be rescinded and a new contract with Flex Benefits Administrators be awarded. He said there is no penalty for this action and he added that staff conducted background checks on the recommended company. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 21.a. M2001-213 Motion to rescind previous Motion No. M2000-459, which authorized the City Manager or his designee to execute a four-year contract with Ceridian Company for Cafeteria Plan Administration. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Longoria, Noyola, and Scott voting "Aye"; Kinnison absent. 21.b. M2001-214 Motion authorizing the City Manager or his designee to execute a four-year contract with Flex Benefits Administrators to administer the City's Section 125 Cafeteria Plan at estimated annual costs of: $17,694 year one, $17,694 year two, $17,694 year three and $17,694 year four. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Longoria, Noyola, and Scott voting "Aye"; Kinnison absent. Minutes - Regular Council Meeting May 29, 2001 Page 17 Mayor Neal called for a brief recess. Upon reconvening, he referred to the third presentation (Item 13), an overview of the proposed FY 2001-2002 budget. City Manager Garcia said that last year when he presented the Council with the budget, the city was facing a financial crisis: shortfalls of over $6 million, reductions in personnel of 130 positions, and the need to cut several services. He said clue to the very difficult decisions the Council made last year, the city has turned the comer financially. Mr. Garcia said the FY01-02 proposed budget provides for the continuation of the ongoing re-engineering efforts in the Water and Wastewater utilities with the elimination of an additional 42 vacant positions. In addition, a total of 17.5 new positions are programmed in the General Fund, including initial funding for a new seven - member ambulance company (the full cost will be phased in over two years). Mr. Garcia said that in this budget he is recommending a $.04 cent tax rate increase pursuant to passage of last November's bond issue, and a 2% rate increase for all utilities. No customer rate adjustment is recommended for solid waste/garbage collection. However, a new collection/hauler assessment for waste originating within the city limits, along with a corresponding tipping fee reduction, is proposed to partially offset operating losses at the city's landfill. The City Manager said the theme of the FY01-02 proposed budget is "Staying the Course for a Bright Future." The recommended budget will build on the momentum of recent successes to address aging infrastructure needs, construct major new facilities, continue re-engineering operations, and enhance the level of responsiveness to the citizens. Mr. Garcia noted that the city has once again received the Distinguished Budget Presentation award and a certificate of achievement for excellence in financial reporting from the Government Finance Officers Association. Mr. Garcia concluded by saying that the total combined annual operating expenditures proposed for FY01-02 are $427,321,626, which includes interdepartmental/interfund transfers and reimbursements. He thanked all of the department heads, particularly the staff of the Office of Management and Budget, for their efforts in preparing this budget. Mr. Mark McDaniel, Director of Management and Budget, referred to a computer presentation to discuss the proposed budget. He outlined several major budget issues, including the implementation of authorized infrastructure/facility projects: bond program 2000, utility projects, arena and seawall projects, convention center expansion, and the Packery Channel tax increment financing zone. Mr. McDaniel said another major budget issue is improving employee retention and recruitment. He said the average length of service for employees as of May 1, 2001 was 11.5 years and for FY00-01 the year-to-date average turnover rate is 11%. To address this issue in the long term, staff is proposing that an employee classification/compensation study be implemented through both in-house efforts and the hiring of a consultant. In addition, the recommended budget includes a 3% across-the-board cost of living adjustment for all employees effective August 1, 2001 and merit adjustment eligibility up to 3% based on performance effective March 1, 2002. He noted that uniformed employees covered by collective bargaining are not eligible for merit pay programs under Minutes - Regular Council Meeting May 29, 2001 Page 18 the current agreements. Council Member Noyola said he was not in favor of the merit pay proposal. Mr. McDaniel also discussed the proposals regarding shift differential pay and benefits. The next major budget issue is addressing deferred maintenance and equipment replacement. He said the budget recommends the following: street repair restoration, $500,000; building repairs, $548,000; equipment replacement, $396,000; and park maintenance, $204,140. Mr. McDaniel said another major budget issue is enhancing public safety, which is being proposed through the hiring of the last 10 officers in the Crime Control and Prevention District's "50 officer plan." In addition, an election to reauthorize the district is programmed for next year out of the district's budget. With regard to the Fire Department, the Budget Director reiterated that staff is proposing hiring seven new ambulance staff members to begin the fire academy in FY01-02 with the new ambulance to be purchased in FY02-03. Mr. McDaniel said that long-term planning for water resources is another major budget issue, and staff is recommending that a new Water Resource Planner position be included, as well as funding for follow-up studies of a potential desalination project and the Garwood pipeline. He said an effort is already underway to again explore the creation of a stormwater utility. Another budget issue is re-engineering for improved service delivery through the funding of a "one-stop" development center on the first floor of the Frost Bank building at Leopard and Port, and through the ongoing efforts in the Water and Wastewater departments with the proposed elimination of a total of 42 more positions. Mr. McDaniel said another major issue is tackling fiscal issues with the city's landfill through the implementation of a new collection/hauler assessment and an adjustment to the tipping fee. In addition, the scale house operation has been transferred to the Financial Services Division. He noted that the Council will have a presentation on the landfill issues on June 12th. Funding clinical health services is also another major budget issue. He said the Mayor and city staff have been meeting with officials from Nueces County and its Hospital District to discuss a proposal to transfer clinical - related health services (including STD clinic, immunization services, and health nursing services) from the city to the Hospital District. The net impact would be approximately $1.1 million. The Budget Director then gave an overview of revenues in the proposed budget: property tax, 26%; sales tax, 23%; other revenues (fines, interest, fees and permits), 22%; solid waste charges, 13%; franchise fees, 12%; and industrial district, 4%. An overview of General Fund expenditures includes the following: salary adjustments, $2.9 million; group benefit cost increase, $1 million; drag -up pay allocation increase, $354,000; new and existing program enhancements, $2.88 million; less $1.13 million for the Health Department reductions and $500,000 for the reduction in the reserve for the landfill cell opening. He said the unreserved fund balance in the General Fund will be maintained at the 5% level after reimbursements. With regard to the utility system, 2% rate increases are being proposed for each of the utilities in FY01-02 due to the major capital improvements that are underway and those planned in the adopted multi-year capital budget. Mr. Garcia pointed out that in order to support the capital budget, annual rate increases of 6% for all utilities will be necessary in future years in accordance with the r Minutes - Regular Council Meeting May 29, 2001 Page 19 rate model. Utilities system expenditures include a $49,000 increase in salaries and costs associated with water planning and capital improvement financing. Mr. McDaniel also discussed recommendations for the enterprise funds: Marina Fund -flat expenditures and a 5% slip rental increase; Golf Centers Fund -round and cart fee increases and a cost of $141,000 for the replacement of the turf maintenance equipment; Airport Fund -expenditure increase of over $300,000 in power costs and revenue increase of a similar amount for new oil and gas leases and property rental revenue; and Ambulance Fund -includes a General Fund subsidy and plans for the 8th ambulance unit. Mr. McDaniel briefly described issues related to the Debt Service Fund, Crime Control and Prevention District Fund, Hotel Occupancy Tax Fund, Visitors Facility Fund, new special revenue funds (TIF, arena and seawall), and the internal service funds. He also discussed changes to the budget document's format and the budget adoption calendar. Mayor Neal requested a nine-month reconciliation by department and he urged the Council members to meet with Mr. Garcia and Mr. McDaniel individually to answer their specific questions. Council Member Kinnison requested assurances regarding agreements with the county and he asked when the final numbers will be provided by the appraisal district. Mr. McDaniel said the city will receive them on July 25th. Mr. Kinnison also asked about the capital improvement budget. Mr. Garcia said staff is making a concerted effort to improve that document in order for it to be useful to staff and the Council. Council Member Garrett commended staff for the new format of the budget. Council Member Longoria requested information about how the new priority issues are addressed in the budget. Mr. Garcia said specific action plans will be developed by the departments for those priority issues. Responding to a question from Council Member Scott, Deputy City Manager Noe said it was difficult to make a direct tie between some of the priority issues the Council approved at their retreat on May 7th and the budget document because of the short time period involved. Council Member Colmenero asked about the 2% growth in revenues, and Mr. McDaniel said staff feels that figure is realistic. Mayor Neal called for the City Manager's report. Mr. Garcia reviewed the proposed budget calendar, noting that the budget public hearing is scheduled for June 26th with the first and second readings on July 10th and July 17th. He said during their retreat, the Council agreed to not have meetings on July 31st, August 7th and August 14th. Mayor Neal suggested that the Stormwater Advisory Committee review the proposed stonnwater master plan before it is brought before the Council on June 12th. The Mayor also referred to a memo dated May 25, 2001 in the City Manager's transmittal regarding City Charter revisions and election options. Mr. Garcia explained the available options: appoint a Charter Revision Committee consisting of citizens from throughout the community; appoint such a committee with a specific charge; appoint a City Council Subcommittee with the mission of developing a series of Charter revision proposals; or have staff make presentations to the Council in a series of Charter revision workshops. 1 Minutes - Regular Council Meeting May 29, 2001 Page 20 The Mayor said he supports the fourth option. Mr. Longoria said he thought the Council should frame the issues up front. City Secretary Chapa said there are technical amendments that city staff will be bringing forward and there are specific areas (listed in the memo) that can be considered. Mr. Garcia also briefly discussed possible election dates. Mayor Neal suggested that the Council begin considering Charter revision issues after the budget process. Mr. Kinnison said it would be more advantageous if two of the possible revision items -- compensation of City Council members and terms of City Council members and term limits --be brought forward by another group other than the Council. Responding to Mr. Colmenero, Mr. Chapa said the Charter can only be amended once every two years and that has not been done since 1993. Mayor Neal also referred to the proposed annexation schedule, which Mr. Garcia briefly explained. The Mayor complimented the Engineering Department for preparing the city-wide street improvement map. He then called for Council concerns and reports. Mr. Chesney asked about the status of the sesquicentennial celebration. The Mayor replied that staff will give the Council a presentation on that issue. Mr. Chesney also requested information about regulations prohibiting skateboarders and rollerbladers from using public streets and walkways. Mr. Longoria asked that a receptacle for cigarette butts be placed outside the Central Library, and he complained about the Weber Road overlay project. Assistant City Manager Massey explained that the project is not yet completed. Mr. Noyola requested information about the city's policy on overtime employment for the Gas, Water, Park and Recreation, and Stormwater departments. Mr. Colmenero requested a status report on the MHMR property on Airport Boulevard. There being no further business to come before the Council, Mayor Neal adjourned the Council meeting at 8:16 p.m. on May 29, 2001. * * * * * * * * * * * * *