HomeMy WebLinkAboutMinutes City Council - 04/02/2002 - SpecialI HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the
Special Council Meeting of the City of Corpus Christi of April 2, 2002, which were approved by the
City Council on April 16, 2002.
WITNESSETH MY HAND AND SEAL, this 16th day of April 2002.
SEAL
Armando Chapa
City Secretary
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MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Special Council Meeting
April 2, 2002 - 9:05 a.m.
PRESENT
Mayor Samuel L. Neal Jr.
Council Members:
Javier D. Colmenero
Henry Garrett
Bill Kelly
Rex A. Kinnison
John Longoria*
Jesse Noyola
Mark Scott
ABSENT
Mayor Pro Tem Brent Chesney
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 Parry
Mayor Neal called the meeting to order in the Council Chambers of City Hall. 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. City Manager Garcia said the purpose of this meeting
is to provide detailed information to the Council about the capital improvement program (CIP) and
the capital budget. *Council Member Longoria arrived at 9:08 a.m.
Mayor Neal said that since this meeting was posted as a special meeting rather than as a
workshop, he will call for public comment after each presentation.
The first presentation was regarding the short-range and long-range CIP for the Water
Department (including the water supply element). Mr. Mark McDaniel, Director of Management and
Budget, gave an overview of the CIP, which staff had presented to the Council during their annual
retreat on March 15, 2002. He said staff has identified a funding plan for the three-year, short-range
CIP in the existing rate model (assuming 6% utility rate increases); however, the long-range CIP
does not have an identified funding plan. Mr. Garcia said that in addition to the extensive listing of
projects in the three-ring binder, staff has also provided the Council with a prioritized enumeration
of the long-range CIP for both the combined utility system and future street needs.
Mr. Ed Garana, Water Superintendent, discussed the Water Department projects. He noted
that in the short-range CIP, the southside transmission main (Phases 2-5) is the largest project,
comprising 46% of the total ($28.85 million). Mr. Garcia explained that about two years ago, the
southside of the city experienced a crisis of sorts with its water pressure. Consequently, the South
Staples Street pump station was moved ahead of schedule as a stop -gap measure pending the
progression of the southside transmission main project.
Mr. Garcia said the plan originally called for running a 36 -inch main across the Laguna
Madre to Padre Island, which would have been very expensive. However, the Council directed staff
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Minutes - Special Council Meeting
April 2, 2002 - Page 2
to explore the development of a desalination facility on the island so as to create a separate water
supply there. Mr. Garafia said that will eliminate the need for the water main crossing but a line still
needs to be extended to Flour Bluff. He added that that project will provide a more stable water
platform across the entire city, which was further discussed by Assistant City Manager Ron Massey.
Council Member Kinnison asked about changing the timing of some of the projects in order
to alter the rate model (i.e., reduce the need for 6% rate increases). Mayor Neal said that if the
Council is committed to the three-year funding plan provided by the rate model, projects can be
substituted but the overall cost would remain the same. However, he said it is a different issue if the
Council is not committed to the funding plan. Mr. McDaniel said that in order to lower the rate
model by 1%, about $8.4 million of projects will have to be eliminated in Year 1. And taking into
consideration the compounding effect, that equates to $21 million of projects in Year 10. There was
additional discussion of the short-range CIP water projects. With regard to the water supply short-
range CIP, Mr. McDaniel said the largest project is the Garwood pipeline at 49% ($10 million)
followed by the Rincon Bayou pipeline at 32% ($6.5 million).
Mr. McDaniel then discussed the water long-range CIP projects. He said traditional funding
sources include the "pay-as-you-go" CIP, commercial paper (on an interim basis), and revenue
bonds. Mr. Garafia said the largest of the long-range projects are the water treatment plants at 47%
($41 million) followed by Phases 6 and 7 of the southside transmission main at 28% ($24 million).
He also discussed the projects in the categories of distribution, pumping plants and other water
needs. Responding to Council members' questions, Mr. Garcia said that the Texas Natural Resource
Conservation Commission (TNRCC) requires that when a community reaches 75% of its water and
wastewater capacity, it needs to have a firm plan in place to increase that capacity. While reviewing
the individual projects, Council members commented specifically about water service to customers
outside the city limits and the issue of the colonias.
Regarding the water supply long-range CIP, Mr. McDaniel said that traditional funding
sources include revenue bonds supported by the raw water charge component of the utility rates. He
noted that funding for the initial study phases of the Garwood pipeline and the Padre Island
desalination facility is included in the short-range CIP. Staff is in the process of evaluating
engineering proposals for feasibility studies for the projects. Upon completion of those studies, the
cost estimates and schedules will be refined for inclusion in the long-range CIP. The Garwood
pipeline constitutes 90% ($88 million) of that plan and the desalination facility is 10% ($10 million).
Additional discussion ensued about the raw water charge and the utility rate model.
Mayor Neal called for public comment about the water projects.
Mr. Bill Kopecky, 3609 Topeka, referred to the water long-range CIP. He said that in 1997
and 1998, 300,000 acre-feet of water was spilled due to rains the city could not capture because Lake
Corpus Christi was full and most of the rains were coming through the Nueces Basin. He asked the
Council to seriously consider constructing a pump station in the Simmons area or a water diversion
at Cotulla as a long-range water supply alternative to either delay or eliminate the need for the
Garwood pipeline.
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Minutes - Special Council Meeting
April 2, 2002 - Page 3
Mr. Massey said city staff has asked the Regional Water Planning Group to look at the issue
of optimization of the Nueces Basin. In addition to Mr. Kopecky's suggestions, another idea is to
build a two-way pipeline between Lake Corpus Christi and Choke Canyon Reservoir. Responding
to Council Member Scott, Mr. Garafia said the evaporation rate in those two reservoirs is large, as
are transportation losses. He said at their closest point (at Simmons), the Nueces River is about 10
miles from Choke Canyon.
Mr. Garcia said the Garwood pipeline and the desalination facility alone are not going to
solve Corpus Christi's long-range water supply needs. He said the Council should have a wide range
of available options. Responding to Mayor Neal, City Attorney Bray said the Simmons plan was one
of 22 options in the Trans -Texas study in the early 1990s. Mr. Garcia said staff could add the Cotulla
reservoir and the reservoir optimization study (including the estimated costs) to the city's long-range
water supply plan.
Mayor Neal said that in addition to the Garwood pipeline and the desalination facility, the
Council should also have information about piping the water from the Choke Canyon Reservoir to
a water treatment facility (as opposed to Lake Corpus Christi). Mr. Scott said there are people who
are opposed to that concept and Mayor Neal said future Councils will need to evaluate all of the
options. Mr. Garcia pointed out that the city now has a long-term water planner, Mr. Max Castefieda,
and staff can give the Council a presentation about the city's water planning strategy.
Council Member Kinnison suggested that the city consider partnering with other entities. Mr.
Garcia said staff is trying very hard to maintain the integrity of the city's water supply as a result of
attempts by other cities to utilize it as they face their own water crises. Mayor Neal said that having
a sufficient water supply is this community's number one issue.
*************
The second presentation was regarding the Wastewater Department. Mr. Foster Crowell,
Wastewater Superintendent, explained that the city has six basins, service areas and treatment plants
which operate independently of each other. He noted that many of the projects are necessary to meet
the TNRCC's wastewater discharge permits, which regulate such things as effluent quality, plant
capacity, and basin treatment capacity. Mr. Crowell then described the many projects included in the
short-range CIP, with total programmed expenditures for the three years of $70.56 million.
Mayor Neal asked about the status of the downtown wastewater system. Mr. Crowell replied
that there have been several wastewater improvement projects in that area, including sliplining of
the Water Street trunk and ongoing inflow and infiltration issues. He said that overall, the downtown
area is doing well. Council Member Colmenero asked about the longevity of sliplined pipes. Mr.
Crowell said that in 1982 Corpus Christi started sliplining pipes as part of a pilot project and they
are still operating. He said the estimated life of a sliplined pipe is 50 to 70 years. Mr. Crowell and
Mr. Escobar responded to other Council members' specific questions about certain projects and
general comments about the large number of wastewater projects in relation to the amount of staff
(including engineers) needed to design and construct them.
Minutes - Special Council Meeting
April 2, 2002 - Page 4
Mr. Crowell then discussed the wastewater long-range CIP projects, which are categorized
as follows: wastewater treatment plants - $131.8 million; lift stations and force mains - $17 million;
collection systems - $16.1 million; and other related wastewater needs - $16.73 million, for a grand
total of $181.6 million. City staff also responded to Council questions; there was no public comment.
* * * * * * * * * * * * *
The third presentation was about the Gas Department. Ms. Debbie Marroquin, Gas
Superintendent, explained that there are five separate gas systems: Corpus Christi (consuming 90%
of the gas); Calallen/Annaville (7% consumption); Padre Island; Country Creek; and farm taps on
Old Brownsville Road and Hwy. 44. She said that five of the seven short-range CIP projects pertain
to the southside gas transmission main. The first project (Part A), which involves crossing Oso Creek
at South Staples Street, is estimated to cost $1 million and will connect the Country Creek gas
system to the Corpus Christi system. The last two projects are for reservation fees and a compressed
natural gas station.
Ms. Marroquin also discussed the long-range CIP projects, the first three of which involve
additional phases of the southside gas transmission main totaling $6.5 million. The other two are for
reservation fees for years two and three for $1.4 million, for a grand total of $7.9 million. She said
their goals are to connect the gas systems as much as possible and to pursue a more competitive gas
supply contract. She then responded to Council members' questions. There were no comments from
the public.
* * * * * * * * * * * * *
The fourth presentation was made by Ms. Valerie Gray, Stormwater Superintendent. She
discussed the three main categories of projects in the short-range CIP: minor drainage improvements -
$1.13 million; bridge rehabilitation and replacement- $600,000; and rolled curb and gutter
replacement - $330,000. Staff members responded to questions from the Council and there was a
discussion about rolled curbs and gutters and drainage problems throughout the city.
Mr. Massey noted that the stormwater master plan, which is being developed, will set
drainage standards for neighborhoods. At that point, a determination can be made about how each
neighborhood measures up to the established standards. He said that eventually the city will improve
those areas but it will take much time and money to do so. Mayor Neal stated that any of the
stormwater long-range CIP projects can be moved into the short-range plan but it would be at the
expense of water projects under the city's current funding system. Additional discussion ensued
about the difficulty of funding stormwater projects.
Mayor Neal suggested that the Council reread a March 8, 2002 memo from the City Manager
in which he forwarded the recommendations of the Stormwater Management Advisory Committee.
The Mayor asked staff to provide a presentation to the Council about those recommendations.
In response to Council members' questions, Ms. Gray discussed the waiting list for rolled
curb and gutter improvements. Mr. Garcia stated that the city requires developers to build drainage
Minutes - Special Council Meeting
April 2, 2002 - Page 5
ditches as part of the platting process. Mr. Escobar explained the Channel 31 pilot project and noted
that some communities, such as San Patricio, have created drainage districts which other
communities can utilize. He said the last major stormwater expenses were incurred as part of the
1986 bond program. Mr. Garcia said that cities throughout the state impose impact fees. Mr. Escobar
said that in the next few months, staff will begin bringing items to the Council related to the
stormwater master plan. Mayor Neal said the development community in Corpus Christi has always
resisted impact fees.
Mr. McDaniel then referred to the 39 stormwater long-range CIP projects, which total $66.8
million. He noted that those projects will be reprioritized once the results of the master plan are
obtained. Ms. Gray said the master plan may even add projects to the CIP. Responding to Council
Member Kelly, Ms. Gray said that Nueces County and other entities will be included in the master
plan discussions. She then delineated the long-range projects.
Mayor Neal said that areas south of South Padre Island Drive drain into the Cayo del Oso and
Oso Creek and he asked about permitting standards for those areas. Mr. Massey said the master plan
should identify the areas that probably should not be developed because of environmental concerns.
A discussion ensued about the quality of stormwater runoff. The Mayor commented that the city is
now paying the price for very poor stormwater planning in the 1960s and the future development of
the city is directly tied to stormwater issues. There were no comments from the audience.
* * * * * * * * * * * * *
The fifth presentation was regarding the utility rate model. Mr. McDaniel said the model
currently indicates a continued need for a 6% base rate increase per year beyond the short-range CIP
for all the utilities (not including the increase for the raw water charge). He said the model is
intended to support a 25% working capital (25% of expenditures) for the combined utility system,
which has been set as a policy issue and is considered by the bond rating agencies. He said at this
point it assumes the inclusion of the entire short-range and long-range CIP as of January 2002. The
Budget Director then showed a graph of utility rate adjustments since 1975. He said the average rate
increases for water, wastewater and gas were approximately 4%, 8% and 3% respectively.
Mr. McDaniel said that each 1% increase in the base utility rates in FY02-03 will generate
the following (approximate figures): $761,766 in revenue; $8.4 million in capital improvement
project capacity in Year 1 of the short-range CIP (FY02-03); $9.5 million in capacity in Year 1 of
the long-range CIP (FY04-05); and $21 million in capital improvement capacity by Year 10 (FY11-
12). He pointed out that the model is a planning tool that has very many variables, such as inflation
rates. He said every year it is reviewed and updated.
Mr. Kinnison said the utility rate model includes every project in both the short-range and
long-range programs. He said he would like staff to develop a rate model with 3% utility rate
increases and then determine the amount of funding that will be available. He said at that point the
Council can determine what projects will "fall out" and not be funded.
Mr. Garcia said the simplest thing to do is to drop off the unfunded stormwater projects,
Minutes - Special Council Meeting
April 2, 2002 - Page 6
which total $66 million. However, he said the implication of not raising the utility rates 6% is that
if the Council wishes to fund those projects in the future, a much more substantial rate increase will
be needed. He said staff can provide all that information to the Council.
Mayor Neal said staff should determine a dollar amount rather than pinpointing projects. He
added that the short-range projects should continue to be funded. Mr. Garcia said many of the
projects are linked together and, as certain areas are cut back, they commit to a course of action that
has long-range implications. He said if the Council is considering cutting back to 3% rate increases
in next year's budget (FY02-03), that will impact projects that are currently underway.
Mr. Scott said staff needs to illustrate the long-term effect of lesser rate increases. Mr.
Longoria said he thinks the trend has been for Councils and the general public to be more critical of
6% rate increases and he suggested that instead, staff should budget for lesser amounts. He added
that staff should also show how different rate increases will affect a typical utility bill. Mr.
Colmenero asked staff to also consider other funding options. Mr. Noyola said there are many people
on fixed incomes who would be adversely affected by a 6% rate increase. Mr. Kinnison said the
Council can lay the ground work and plan ahead for future projects and future bond elections. There
were no comments from the audience on the utility rate model.
Mayor Neal recessed the meeting at approximately 1:25 p.m. so the Council could attend the
funeral of Council Member Chesney's father.
* * * * * * * * * * * * *
The Mayor reconvened the Council meeting at approximately 3:20 p.m. The sixth
presentation was regarding public facilities. Mr. McDaniel pointed out that staff would be focusing
on the long-range CIP projects for public facilities, public health and safety, airport, parks and
recreation, and streets since the short-range CIP is made up almost entirely of utility projects (which
have already been discussed). He said that traditional funding sources for public facilities programs
include bond funds (general obligation, sales tax, and hotel/motel tax) and CDBG funds.
Mr. Kevin Stowers, Assistant Director of Engineering Services, said there are five public
facilities projects in the long-range CIP totaling $9.9 million: northwest branch library expansion;
new southside branch library; Memorial Coliseum improvements; "Doc" McGregor photograph
collection storage facility; and a marine archeology laboratory. He said the short-term CIP projects
(including the multipurpose arena and the convention center expansion) are well underway.
Mr. Kinnison asked about the Memorial Coliseum project. Mr. Stowers said that a decision
has not yet been made about the functionality of the coliseum, particularly since the arena is not
completed. Deputy City Manager Noe pointed out that the city has a lease with the IceRays hockey
team for the use of the coliseum. The lease has a five-year renewal option and staff intends to
negotiate for the IceRays to use the arena instead. Mr. Garrett asked about the Workforce
Development roof waterproofing, and Mr. Stowers said that contract, which is being funded with
CDBG monies, has already been awarded. Mr. Garrett commented that that building (the old Police
Department headquarters) has had water leaks for many years. There were no public comments.
Minutes - Special Council Meeting
April 2, 2002 - Page 7
The seventh presentation was about the public health and safety projects. Mr. McDaniel said
that traditional funding sources are general obligation and sales tax bonds, State Infrastructure Bank
loans, and the Padre Island tax increment financing district. Mr. Stowers said the long-range CIP
includes some continuing projects that were in the 2000 Bond issue, such as Phase 2 of the public
safety training facility ($10 million). Other future projects are: a fire station in the area of Yorktown
Boulevard between Rodd Field Road and the Cayo del Oso - $1.5 million; Annaville fire station -
$1.5 million; Police headquarters expansion (Phases 1 and 2)- $1.8 million; and four police
substations - $2.5 million, for a total of $17.3 million.
Mr. Stowers also referred to the ongoing short-range public health and safety projects. He
said staff is working on land acquisition for Phase 1 of the police and fire training facility;
advertising for the Mustang Island fire substation project will be advertised on April 15th; fire station
ADA compliance and coed improvements are underway; the Health Department roof repair has been
completed; the contract for the construction of the new Animal Control facility has been awarded;
the seawall, sidewalk and marina bulkhead improvements are currently being advertised for bids;
the Elliott Landfill project is under construction; the Packery Channel project is moving forward;
and the JFK Causeway elevation is also underway. Staff then responded to Council members'
questions, including some regarding the police substations and fire stations. There were no
comments from the public.
* * * * * * * * * * * * *
The eighth presentation was regarding the airport long-range projects. Mr. McDaniel said that
traditional funding sources include Federal Aviation Administration (FAA) grants, passenger facility
charges, airport revenue bonds and airport capital reserves. He said that future airport capital
improvement projects are dependent on FAA grants and discretionary funding.
Mr. Dave Hamrick, Aviation Director, said many of the CIP projects are demand -driven in
accordance with the recently received airport master plan. He then described the long-range projects,
which are categorized as follows: runway extension - $28.09 million; land acquisition - $11.71
million; airfield drainage - $4.1 million; airfield rescue - $2.85 million; taxiway improvements -
$1.93 million, and other projects - $2.65 million, for a total of $51.33 million.
Mayor Neal asked about a project in the current year known as the landside roadway system -
entrance road reconstruction. Mr. Stowers replied that staff plans to open bids on April 22nd for the
loop road portion and parking lot improvements. He said the entrance road component itself has been
deferred to the future. Mr. Hamrick said he does not think it will be too far in the future, which he
explained. The Mayor also asked about a possible joint facility usage. Mr. Hamrick said subsequent
to the Mayor's request, he has drafted a lease for the Coast Guard, which is interested in relocating
to the airport. Mayor Neal also commented on the importance of homeland security and Corpus
Christi's proximity to the Gulf of Mexico. Additional discussion ensued about the entrance road and
the joint use airport issues. There were no comments from the audience.
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Minutes - Special Council Meeting
April 2, 2002 - Page 8
The ninth presentation was regarding park and recreation projects. Mr. McDaniel said that
traditional funding sources include general obligation bonds, park trust funds, CDBG funds, state
or interagency grants, and street assessment appropriations. He said the long-range CIP will be
further refined pending the completion of the parks master plan, which is estimated to occur in the
summer of 2002.
Mr. Stowers said these programs also receive monies from the Golf Course Fund, Marina
Fund and General Fund. He said the long-range CIP includes improvements in the following areas:
golf courses - $10 million; aquatic facilities - $8.78 million; parks - $7.98 million; marina - $5.5
million; neighborhood park playgrounds - $5 million; beaches - $2.4 million; park maintenance
facilities - $1.09 million; recreation centers - $615,000; tennis centers - $495,000; and other -
$605,000, for a total of $42.46 million.
Mr. Kinnison requested that the new southside senior center be included in the short-range
program and he inquired about the marina improvements, to which Mr. Tony Cisneros, Director of
Park and Recreation, responded. Mayor Neal asked about the marina dredging project. Mr. Stowers
said it is a Texas General Land Office project, which he further described. Mr. Massey added that
despite the GLO project, there is a need for long-term marina dredging.
Mr. Longoria asked Mr. Kelly about the CIP project for Labonte Park. Mr. Kelly said that
park is where all the soccer and intramural sports are played in the northwest area. Mr. Stowers said
any infrastructure at Labonte Park will be flood resistant; however, most of the improvements will
be for underground utilities. Mr. Noyola asked about the timing of the Garcia athletic fields
renovation and the West Oso High School tennis courts renovation. Mr. Cisneros said there are many
park and recreation projects in the long-range CIP and not enough money to pay for them. He said
part of the problem is deferred maintenance, which is also caused by a lack of funding. Mr. Garcia
added that West Oso High School is located in a CDBG-eligible area.
Mr. Scott referred to the short-range CIP, saying that one of the baseball leagues is concemed
that the irrigation system project is being done during baseball season. Mr. Cisneros replied that it
is simply a function of needing to get the projects done. A discussion ensued. Mr. Colmenero asked
about projects at the senior centers and the HEB tennis center, and Mr. Garrett asked about South
Bluff Park and the out -of -service fire station on Louisiana Parkway, to which staff responded. There
was no public comment.
* * * * * * * * * * * *
*
The tenth and last presentation was regarding street projects. Mr. McDaniel explained that
after the capital budget/planning guide was distributed, staff updated the streets long-range CIP,
including adding some new projects (with pending cost estimates). Mr. Stowers said the future street
needs are not funded at this time but will be through the next bond issue. He said staff has made
recommendations about the priority of those projects, which are categorized under new construction,
reconstruction and other street -related construction. Mr. Massey explained that new construction
expands capacity, whereas reconstruction takes an existing road and increases its longevity.
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Minutes - Special Council Meeting
April 2, 2002 - Page 9
Responding to Mayor Neal, Mr. McDaniel said the preliminary estimate for the streets long-
range CIP is $125.39 million, but that does not include some of the new projects. Mr. Massey said
the timing of some of those projects depends on how much money is invested in street maintenance
each year. He added that Metropolitan Planning Organization funding is tied up for the next three
years. Mr. Garcia said the estimates do not include utility costs. Mr. David Seiler said many of the
city's streets have needed additional capacity and improvements for quite some time.
Mayor Neal suggested that staff develop a debt model for a bond election in 2004. Mr.
McDaniel said that beginning in 2009, the city will have a debt capacity of $98 million (assuming
a 3% growth in valuations). Ms. Barbara Dolce, Street Superintendent, described the city's pavement
management program and Mr. Escobar further described the difference between new construction
and reconstruction projects.
Mr. Kinnison referred to a future bond program for streets, saying the Council should let the
citizens decide how much debt they think they can handle in order to accomplish these overdue
projects. Mr. Garcia said the street cost estimates are linked to the utility rate numbers. Mr. Escobar
pointed out that with the Bond 2000 projects, for every $1 of street work, construction crews are
having to do $1 of utility work. Consequently, there is $20 million of utility work associated with
the $20 million in street work approved by the voters. Staff members further responded to Council
members' questions about specific street projects. There were no comments from the public.
In conclusion, Mayor Neal referred to a chart showing the impact of proposed rate increases
on an average residential utility bill. He said that information needs to be disseminated. Mr.
McDaniel said the reason the utility bill itself does not increase by 6% is because the raw water
charge increase is only 3% and because solid waste fees (which are also included) are not changing.
Mr. Garcia said that on April 30th, staff will bring back the detailed analysis the Council requested.
The Mayor said it is important that the Council and staff initiate an intensive community
informational program about the meaning of "debt." He said debt that is properly incurred, financed
and approved for a good purpose improves the quality of life in cities. He said the presentations
made at this meeting illustrate the consequences of not investing in the city's infrastructure.
There being no further business to come before the Council, Mayor Neal adjourned the
Council meeting at 5:27 p.m. on April 2, 2002.
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