HomeMy WebLinkAboutMinutes City Council - 03/23/2004I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the
Regular Meeting of the Corpus Christi City Council of March 23, 2004, which were approved by
the City Council on March 30, 2004.
WITNESSETH MY HAND AND SEAL, this the 30th day of March 2004.
LiilL
Armando Chapa
City Secretary
SEAL
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Council Meeting
March 23, 2004 - 9:05 a.m.
PRESENT
Mayor Samuel L. Neal Jr.
Mayor Pro Tem Mark Scott
Council Members:
Brent Chesney
Javier D. Colmenero
Melody Cooper
Henry Garrett
Bill Kelly (Arrived at 9:10 a.m.)
Rex A. Kinnison
Jesse Noyola
City Staff:
City Manager George K. Noe
City Attorney Mary Kay Fischer
City Secretary Armando Chapa
Mayor Neal called the meeting to order in the Council Chambers of City Hall. The
invocation was delivered by Mayor Neal and the Pledge of Allegiance to the United States flag was
led by Council Member Garrett. 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 2. A motion was
made and passed to approve the minutes as presented.
* * * * * * * * * * * * *
Mayor Neal called for consideration of the consent agenda (Items 2-20). City Secretary
Chapa announced that Council Member Noyola was abstaining from the vote and discussion on Item
12. Council members requested that Item 6 be discussed. There were no comments from the
audience. A motion was made and passed to approve Items 2 through 20, constituting the consent
agenda, except for Item 6, which was pulled for individual consideration. City Secretary Chapa
polled the Council for their votes as follows:
Minutes - Regular Council Meeting
March 23, 2004 - Page 2
2. MOTION NO. 2004-086
Motion approving the lease purchase of six (6) automated side -loading refuse trucks from
the following companies for the following amounts for the total amount of $990,534. The
award is based on the cooperative purchasing agreement with the Texas Local Government
Purchasing Cooperative (TLGPC). These automated side -loading refuse trucks will be used
by Solid Waste Services. Financing will be provided through the City's lease/purchase
financing program.
Rush Truck Center McNeilus Truck & Manufacturing
Houston Texas Hutchins, Texas
Truck Chassis Refuse Packer Body
$613,500 $377,034
Grand Total: $990,534
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
3. MOTION NO. 2004-087
Motion approving the purchase of eighteen (18) riding mowers from John Deere
Commercial, of Cary, North Carolina, in accordance with the cooperative purchasing
agreement with the Texas Local Government Purchasing Cooperative (TLGPC) for a total
amount of $101,236.50. The riding mowers will be used by the Park and Recreation
Department. Funds are available in the FY 2003-2004 Park Operations Budget.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
4. ORDINANCE NO. 025668
Ordinance appropriating $34,902.41 from the State of Texas in the No. 1061 Police Grants
Fund - Law Enforcement Officer Standards and Education for training of police personnel
and purchase of training equipment.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott,
voting "Aye"; Kelly was absent.
Minutes - Regular Council Meeting
March 23, 2004 - Page 3
5.a. MOTION NO. 2004-088
Motion authorizing the City Manager or his designee to accept a renewal Weed and Seed
Grant in the amount of $225,000 from the United States Department of Justice for the
continued support of the Weed and Seed Program, Site I North.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
5.b. ORDINANCE NO. 025669
Ordinance appropriating $225,000 from the United States Department of Justice, Office of
Justice Programs, in the No. 1067 Park and Recreation Grants Fund for the continued
support of the Weed and Seed Program, Site 1 North for FY 2003-2004.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott,
voting "Aye"; Kelly was absent.
7.a. MOTION NO. 2004-098
Motion authorizing the City Manager or his designee to accept a renewal Weed and Seed
Grant in the amount of $225,000 from the United States Department of Justice for the
continued support of the Weed and Seed Program, Site II West.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
7.b. ORDINANCE NO. 025670
Ordinance appropriating $225,000 from the United States Department of Justice, Office of
Justice Programs, in the No. 1067 Park and Recreation Grants Fund for the continued
support of the Weed and Seed Program, Site 11 West, for FY 2003-2004.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
8.a. MOTION NO. 2004-099
Motion authorizing the City Manager or his designee to execute an agreement with Mr.
Lorenzo Knowles to provide $946 from the FY 2003-2004 Weed and Seed Program for
mentoring the Drug Education for Youth Program and activities in Site II West.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
M1nuic - Regular Council Meeting
March 23, 2004 - Page 4
8.b. MOTION NO. 2004-100
Motion authorizing the City Manager or his designee to execute an agreement with the
Corpus Christi Housing Authority to provide $13,500 from the FY 2003-2004 Weed and
Seed Program for providing a continuation of services to the youth of public housing to
include outdoor activities, life building and team concepts skills, and recreational sports.
The program will include those youth in the Calallen area.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
8.c. MOTION NO. 2004-101
Motion authorizing the City Manager or his designee to execute an agreement with Boys &
Girls Club of Corpus Christi, Inc. to provide $6,000 from the FY 2003-2004 Weed and Seed
Program to provide an after school program and promote abstinence from substance abuse
and adolescent sexual involvement through the practice of responsible behavior.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
8.d. MOTION NO. 2004-102
Motion authorizing the City Manager or his designee to execute an agreement with Fighting
To Rid Gangs in America Foundation to provide $14,397 from the FY 2003-2004 Weed and
Seed Program to implement after school and weekend alternative activities at their activity
center classrooms, gym, and computer center.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
8.e. MOTION NO. 2004-103
Motion authorizing the City Manager or his designee to execute an agreement with Goodwill
Industries to provide $8,000 from the FY 2003-2004 Weed and Seed Program to hire, train
and maintain our SEEDTECH on-site computer education lab, and all the benefits that will
accompany the project.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
Minutes - Regular Council Meeting
March 23, 2004 - Page 5
8.f MOTION NO. 2004-104
Motion authorizing the City Manager or his designee to execute an agreement with The City
of Corpus Christi, Park and Recreation Department, Aquatic Division to provide $25,000
from the FY 2003-2004 Weed and Seed Program to implement their free summer swim
program at Greenwood and Violet pools.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
8.g. MOTION NO. 2004-105
Motion authorizing the City Manager or his designee to execute an agreement with God's
Gym to provide $11,000 from the FY 2003-2004 Weed and Seed Program to implement after
school programs for youth to participate in developing and enhancing their artistic skills,
fitness and conditioning workshops, mentoring and tutoring assistance.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
9.a. ORDINANCE NO. 025671
Ordinance appropriating $875,000 from the unappropriated interest earnings from
Wastewater 1999A Capital Improvement Program Fund 4243 (SRF) for the Greenwood
Sanitary Sewer Trunk Main Cleaning Project; and amending the Capital Budget adopted by
Ordinance No. 025647 by increasing appropriations by $875,000.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott,
voting "Aye"; Kelly was absent.
9.b. MOTION NO. 2004-106
Motion authorizing the City Manager or his designee to execute a construction contract with
Specialized Maintenance Services, Inc., of Pasadena, Texas in the amount of $705,590 for
the Greenwood Sanitary Sewer Trunk Main Cleaning Project.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
Minutes - Regular Council Meeting
March 23, 2004 - Page 6
10.a. ORDINANCE NO. 025672
Ordinance appropriating $148,350 from the unappropriated claim settlement from City Hall
Capital Improvement Program Fund No. 3160 for the City Hall First Floor Call Center;
amending Capital Budget adopted by Ordinance No. 025647 by increasing appropriations
by $148,350.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott,
voting "Aye"; Kelly was absent.
10.b. MOTION NO. 2004-107
Motion authorizing the City Manager or his designee to execute a construction contract with
Sal -Con, Inc., of Corpus Christi, Texas in the amount of $108,500 for the City Hall First
Floor Call Center.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
11.a. MOTION NO. 2004-108
Motion authorizing the City Manager or his designee to execute a utility easement with the
owner Spohn Hospital, in the amount of $35,000 for Parcels IUE, 1TCE, 1A -UE, and 1A-
TCE all out of the Saratoga Staples Plaza, Block 1, Lots 3 and 4 located on Saratoga
Boulevard between South Staples Street and Cimarron Boulevard, in connection with the
Force Main, Line C, Phase 2 Project.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
11.b. MOTION NO. 2004-109
Motion authorizing the City Manager or his designee to execute a utility easement with the
owner Spohn Hospital, in the amount of $42,693 for Parcel 17, out of the Saratoga Staples
Plaza, Block 1, Lot 4 located on Saratoga Boulevard between South Staples Street and
Cimarron Boulevard, in connection with the Buckingham Estates Lift Station and Force
Main Diversion Project.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
Minutes - Regular Council Meeting
March 23, 2004 - Page 7
12. MOTION NO. 2004-110
Motion authorizing the City Manager or his designee to execute Amendment No. 8 with
Anderson Group Construction Management, Inc., of Corpus Christi, Texas in an amount not
to exceed $183,600 to provide project management duties for the Corpus Christi
International Airport Terminal Project through July 2004.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
13. ORDINANCE NO. 025673
Ordinance authorizing the City Manager or his designee to execute a Use Privilege
Agreement with Valero Refining - Texas, L.P. for the right to install, operate, maintain, and
remove one 18 -inch RCP storm sewer line, approximately 35 -linear feet across Kaler Drive
right-of-way; one 24 -inch and one 36 -inch RCP storm sewer line, approximately 30 -linear
feet across Kaler Drive right-of-way; one 6 -inch Waste Disposal line, one 8 -inch Fire line
and one 24 -inch Electrical/Communications Duct Bank, approximately 45 -linear feet across
Kaler Drive right-of-way; one 24 -inch Electrical/Communications Duct Bank and two 24 -
inch RCP storm sewer lines, approximately 50 linear feet across the Cantwell Lane right-of-
way; establishing a fee of $4,236.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott,
voting "Aye"; Kelly was absent.
14. MOTION NO. 2004-111
Motion authorizing the City Manager to execute a Deferment Agreement with Shell Land
Development Management Company, Inc. (Developer), in the amount of $236,356.39 for
the future street construction improvements including street pavement, curb, gutter and
sidewalks, storm water, sanitary sewer and water lines along the extension of Acushnet
Drive and Kram Road adjacent to Lot 2, Block 8, Saratoga Weber Plaza in accordance with
the Platting Ordinance Section V -Required Improvements, Subsection A.3.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
15. MOTION NO. 2004-112
Motion authorizing the City Manager or the City Manager's designee to execute a twelve-
month software maintenance agreement with Court Specialists, Inc. of Friendswood, Texas
in an amount not to exceed $41,229.05. Included in the maintenance agreement is the
support for the External Warrants Interface.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
Minui - Regular Council Meeting
March 23, 2004 - Page 8
16. RESOLUTION NO. 025674
Resolution authorizing the City Manager or his designee to execute an Interlocal
Cooperation Agreement with Texas A & M University - Corpus Christi in the amount of
$345,000 for pollution prevention partnership and educational outreach program, which
includes small business assistance and public education on pollution prevention and air
quality in Nueces and San Patricio Counties.
The foregoing resolution was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
17. RESOLUTION NO. 025675
Resolution authorizing the City Manager or the City Manager's designee to execute an
amendment to the Interlocal Cooperation Agreement with Texas A & M University - Corpus
Christi in the amount of $45,000 to add a remote vehicle emissions sensor project called
"AutoCheck" to the Pollution Prevention Partnership activities.
The foregoing resolution was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
18. ORDINANCE NO. 025676
Ordinance authorizing the resale of one property located at 5300 Agnes shown on the
attached and incorporated Exhibit A which was foreclosed upon for failure to pay ad
valorem taxes, for $41,000.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott,
voting "Aye"; Kelly was absent.
19. ORDINANCE NO. 025677
Authorizing the City Manager or his designee to execute a First Amendment to the Lease
Agreement with Great Western Soccer League, a non-profit organization, for the use of
Terry and Bobby Labonte Park for its soccer program in consideration of Great Western
Soccer League maintaining the premises and improvements. (First Reading: 02/10/04)
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott,
voting "Aye"; Kelly was absent.
Minutes - Regular Council Meeting
March 23, 2004 - Page 9
20.a. ORDINANCE NO. 025678
Amending the Code of Ordinances, City of Corpus Christi, Chapter 2 regarding the Cable
Communications Commission. (First Reading 03/02/04)
The foregoing ordinance was passed and approved on its second reading with the following
vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting
"Aye"; Kelly was absent.
20.b. ORDINANCE NO. 025679
Amending the Code of Ordinances, City of Corpus Christi, Chapter 55, regarding Rules and
Procedures for Public Access Cablecasting; and providing for penalties. (First Reading
03/02/04)
The foregoing ordinance was passed and approved on its second reading with the following
vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting
"Aye"; Kelly was absent.
Mayor Neal opened discussion on Item 6 regarding a number of agreements for the Weed
and Seed Program. Regarding Item 6a, Mayor Neal commented that he wanted to thank Mr.
Lorenzo Knowles for his service to the youth in the community, especially in the North side of town.
City Secretary Chapa polled the Council for their votes as follows:
6.a. MOTION NO. 2004-089
Motion authorizing the City Manager or his designee to execute an agreement with Mr.
Lorenzo Knowles to provide $946 from the FY 2003-2004 Weed and Seed Program for
mentoring the Drug Education for Youth Program and activities in Site 1 North.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
6.b. MOTION NO. 2004-090
Motion authorizing the City Manager or his designee to execute an agreement with Planned
Parenthood of South Texas, Inc. to provide $4,730 from the FY 2003-2004 Weed and Seed
Program to implement collaborative partnerships with existing community programs to
provide after school, weekend and summer programs in Site 1 North. The goal is to reduce
at -risk behaviors including drug and alcohol use and teen pregnancy among Weed and Seed
adolescents.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
Minutes - Regular Council Meeting
March 23, 2004 - Page 10
6.c. MOTION NO. 2004-091
Motion authorizing the City Manager or his designee to execute an agreement with The Boy
Scouts of America -South Texas Council to provide $1,113 from the FY 2003-2004 Weed
and Seed Program to implement their learning for life program in the targeted census tracts
through the Corpus Christi Independent School District locations.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
6.d. MOTION NO. 2004-092
Motion authorizing the City manager or his designee to execute an agreement with YMCA
to provide $10,000 from the FY 2003-2004 Weed and Seed Program to implement
prevention programs. The Coles Prime Time Program (licensed childcare after-school)
Summer Basketball League and Summer Swim Program.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
6.e. MOTION NO. 2004-093
Motion authorizing the City Manager or his designee to execute an agreement with The City
of Corpus Christi, Park and Recreation Department to provide $10,000 from the FY 2003-
2004 Weed and Seed Program to implement their sports program. This would be for the
Winter and Summer Basketball program for the North Side Community.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
6.f. MOTION NO. 2004-094
Motion authorizing the City Manager or his designee to execute an agreement with God's
Gym to provide $8,000 from the FY 2003-2004 Weed and Seed Program to implement after-
school programs for youth to participate in developing and enhancing their artistic skills,
fitness and conditioning workshops, mentoring and tutoring assistance.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
Minutes - Regular Council Meeting
March 23, 2004 - Page 11
6.g. MOTION NO. 2004-095
Motion authorizing the City Manager or his designee to execute an agreement with Beautify
Corpus Christi Association to provide $8,333 from the FY 2003-2004 Weed and Seed
Program to provide art projects and activities for the youth and adults of the North Side.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
6.h. MOTION NO. 2004-096
Motion authorizing the City Manager or his designee to execute an agreement with the
Corpus Christi Housing Authority to provide $8,334 from the FY 2003-2004 Weed and Seed
Program for providing a continuation of services to the youth of public housing to include
outdoor activities, life building and team concepts skills, and recreational sports.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
6.i. MOTION NO. 2004-097
Motion authorizing the City Manager or his designee to execute an agreement with Metro
Ministries of Corpus Christi to provide $8,333 from the FY 2003-2004 Weed and Seed
Program to implement basic health care services that help to fill the gap in services, stabilize
the client's health situation and allow them the opportunity to focus on the social and
financial problems that typically accompany homelessness.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly was absent.
* * * * * * * * * * * * *
Mayor Neal referred to Item 21a, and a motion was made, seconded and passed to open the
public hearing on the following zoning text amendment:
21.a. Public hearing to consider a text amendment to the Zoning Ordinance to address non -
illuminated temporary signs displaying the sale, rent, or lease of single-family, duplex or
townhomes.
Mr. Gunning explained that current regulations limit the size of the temporary signs to four
(4) square feet, regardless of whether the property is a single-family residence or a large tract of
vacant residential land. He said the proposed amendment recommends the temporary signs on
properties developed with single-family, duplex or townhome uses be increased to a sign area of six
(6) square feet, allowing one sign per street frontage.
Additionally, Mr. Gunning said the proposed amendment would allow large tracts of vacant
residential land larger signs commensurate with the size of the land. Vacant tracts of land between
Minutes - Rei alar Council Meeting
March 23, 2004 - Page 12
three (3) acres and five (5) acres would be allowed a maximum sign area of 16 square feet. Vacant
tracts of land with five (5) acres or more that front an arterial, highway, or expressway would be
allowed a maximum sign area of32 square feet. In both situations, the sign heights would be limited
to eight (8) feet. He said staff had met with the Corpus Christi Board of Realtors and they supported
the proposed amendments.
No one appeared in opposition to the zoning text amendment. A motion was made,
seconded, and passed to close the public hearing. Mr. Chapa polled the Council for their votes as
follows:
21.b. FIRST READING ORDINANCE
Amending the Zoning Ordinance of the City of Corpus Christi by amending sections 4A-2,
4B-2, 4C-2, 5-2, 6B-2, 8-2, 8A-2, and 9-2 to allow for temporary non -illuminated signs
pertaining to the lease, hire, or sale of a building or premises on which the sign is located,
with certain parameters.
The foregoing ordinance was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
Mayor Neal referred to Item 22, and a motion was made, seconded and passed to open the
public hearing on the following zoning case:
Case No. 0204-02, Soroush Farahnakian: A change of zoning from a "B-1" Neighborhood
Business District and "R -1B" One -family Dwelling District to a "B-4" General Business
District on Tract 1 and `B-1" Neighborhood Business District on Tract 2. The property is
on Baldwin -Moore Farm Lots, being 3.289 acres out of a portion of Lot 2, bound by South
Padre Island Drive, West Point Road, and Friendship Drive (formerly Bush Drive).
City Secretary Chapa said the Planning Commission and staff recommended the Approval
of the "B-4" General Business District on Tract 1 and `B-1" Neighborhood Business District on
Tract 2.
No one spoke in opposition to the zoning change. Ms. Cooper made a motion to close the
public hearing, seconded by Mr. Chesney.
Mr. Noyola asked if staff knew what the applicant's plans were for development on Tract
2. Mr. Gunning replied that he was not certain, but the applicant had indicated that the development
would be beneficial to the neighborhood, such as a Laundromat. City Secretary Chapa polled the
Council for their votes as follows:
Minutes - Regular Council Meeting
March 23, 2004 - Page 13
22. ORDINANCE NO. 025680
Amending the Zoning Ordinance, upon application by Soroush Farahnakian by changing the
zoning map in reference to Baldwin -Moore Farm Lots, Portion of Lot 2, Volume "A", Page
50 from "B-1" Neighborhood Business District to "B-4" General Business District on Tract
1 and from "R -1B" One -family Dwelling District to `B-1" Neighborhood Business District
on Tract 2; and amending the comprehensive plan to account for any deviations from the
existing comprehensive plan.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and
Scott, voting "Aye".
* * * * * * * * * * * * *
Mayor Neal deviated from the agenda, and opened discussion on Item 25 regarding the
issuance of bonds by the Corpus Christi Business and Job Development Corporation for the baseball
stadium project. Assistant City Manager Mark McDaniel stated that staff and several Council
members had recently returned from a bond rating trip in New York. He was happy to report that
the city had received an increase in the bond rating for the baseball stadium bonds from Fitch
Ratings. He also reported that the city had received favorable rates on insurance to insure the bonds.
He said the Council was being asked to approve a resolution authorizing a perimeter sale that would
take place when interest rates were most favorable. He asked Mr. Jeff Leuschell, Bond Counsel,
with McCall Parkhurst and Horton, to provide information on the three items comprising the
resolution.
Mr. Leuschell explained that this item was identical to previous actions the Council had
taken with respect to the seawall project and the arena project. He said today's resolution approves
the action taken by the Corpus Christi Business and Job Development Corporation at their meeting
yesterday. He said the principal amount was capped at $27 million in that resolution, although he
said it was currently expected that approximately $25,300,000 will be the amount of the bond issue.
He said the corporation was contributing some of its currently collected sales tax to defray the
borrowing on the issue. He stated that the resolution also approved the project agreement and the
sales tax remittance agreement with the corporation, virtually identical to those approved in the past
for the seawall and arena projects.
Mr. Jim Gilley, Financial Advisor, with Coastal Securities, provided a report on the process
to be undertaken when the bonds are priced at some point within the next two weeks. He
complimented the Mayor, Council Member Cooper, Council Member Garrett, and staff for their
efforts during the bond trip to New York. He said the increase in the bond rating from Fitch
reflected how successful the trip was. He said the team anticipated pricing the bonds early next
week. He said they were anticipating a 3-1/2 percent rate and under. He said the transaction would
be closed on April 27, shortly after the end of the 60 -day waiting period required before the lease
became effective. He stated that the underwriting team was led by Morgan Keegan, Bank of
America and BBC Dain Rauscher.
Council Member Cooper complimented Mr. Gilley, Mr. Leuschell, and city staff, especially
Minutes - Regular Council Meeting
March 23, 2004 - Page 14
City Manager Noe, Finance Director Cindy O'Brien, and City Engineer Angel Escobar, for their
efforts presenting the city's case to the ratings agencies and insurance companies. Mayor Neal
echoed her sentiments.
Mr. Kinnison asked for the total number of funds received from the economic development
sales tax annually. Mr. McDaniel replied that it was slightly over $4 million. Mr. Kinnison noted
that if the debt payment on the baseball stadium was estimated to be $2.2 million a year, then the
remaining balance would be $1.8 million, of which $500,000 was for affordable housing. Thus, he
concluded that $1.3 million would remain for economic development projects. Mr. McDaniel
replied that projections estimated that the sales tax would grow over time so that it would provide
2 -to -1 coverage by Year 4. He said there should be sufficient funds throughout the period of the 15 -
year authorization to continue with 4A Board economic development programs. There were no
comments from the audience. City Secretary Chapa polled the Council for their votes as follows:
25. RESOLUTION NO. 025681
Resolution approving the resolution authorizing the issuance of bonds by the Corpus Christi
Business and Job Development Corporation and the execution of a Sales Tax Remittance
Agreement, a Project Agreement, and a Bond Purchase Agreement with respect to the
Baseball Stadium Project.
The foregoing resolution was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
Mayor Neal noted that since interest rates were so low, the city would be well advised to
examine any refinancing opportunities this year. Mr. McDaniel replied that staff was looking at
refinancing three projects, comprised primarily of Certificates of Obligation and General Obligation
bonds. He said staff was waiting for the Council's decision on the landfill because it would require
the issuance of debt as well. Thus, he said when staff brought forward any issuance regarding the
landfill in the next few months, they would include a number of refinancing opportunities. Mayor
Neal emphasized that he would like staff to pursue any refinancing opportunities before the national
election.
* * * * * * * * * * * * *
Mayor Neal referred to the presentations on the day's agenda. The first presentation was
Item 23, a quarterly update from the Corpus Christi Convention and Visitors Bureau (CVB). Mr.
Dave Prewitt, Chairman of the CVB Board of Directors, remarked that the Spring Break weekend
had been good for business. He introduced the new President and CEO of the Convention and
Visitors Bureau, Mr. Tom Galyon. He said Mr. Galyon had worked most recently in Lansing, MI
and the Northern Kentucky Convention and Visitors Bureau.
Mr. Galyon began his presentation by making two announcements. He recognized Ms. Liz
Massey-Kimbel, representing Lamar Outdoor Advertising, the firm that had provided the Corpus
Christi CVB with twenty billboards throughout the state at an estimated value of $192,000. He also
presented a new birding brochure, created in cooperation with the Audubon Society.
Minutes - Regular Council Meeting
March 23, 2004 - Page 15
Mr. Galyon provided an update on the CVB's efforts to date and its future goals. He
discussed their efforts to streamline operations. Regarding office facilities and employee programs,
he said they had worked with the city to update their server and computers. In addition, he said the
CVB has worked with the city to achieve a $20,000 savings on employee insurance and benefits
plans by joining the city's plan.
Mr. Galyon reviewed the CVB's efforts to streamline their personnel. He said they had
reassessed all sales functions, strategies and goals to ensure a return on investment. He said they
had merged convention sales and tourism sales, re-evaluated staff skills and abilities, and re -aligned
staff structure. He referred to the new staff organizational chart. He said one of his goals for the
CVB was to be the best in the state for service.
Mr. Galyon reported that the CVB was completely redesigning their website. He said the
new and improved website would be premiered during National Tourism Week, the week of May
8. He said the new website would be quick and easy to navigate, and provide a number cf online
travel packages, including a family fun getaway, romance package, and featured event package.
He also said the website would provide online discount coupons and a searchable calendar of events.
Finally, he said the site would provide interactive maps and a "click and save" itinerary.
Mr. Galyon reviewed information regarding the CVB's advertising efforts. He presented a
sample chart of a 2004-2005 marketing plan for a target market. He said each of the CVB's plans
would be comprised of a rationale, expected objective, strategies and tactics, departments involved,
beginning and completion dates, cost analysis, budget support, and market research.
Mr. Galyon reviewed the results of the STR report for January 2004. Compared with other
similarly sized cities, the report showed that Corpus Christi was down 2.7 percent in overall
occupancy. He said the average room rate had increased 4.4 percent, and RevPAR had increased
by 1.8 percent.
Mr. Galyon discussed the 2003-2004 advertising cooperative program. He said that for a
total advertising budget of $412,299, the CVB's portion was $114,926, which reflected the high
level of cooperation being received. He noted that the Lamar Outdoor Advertising Company's
outdoor billboard campaign was provided at an estimated value of $192,000.
Mr. Galyon presented an example of a print advertisement that would be appearing in the
Texas Travel Industry Association Newspaper, as well as an ad that would appear in Texas Monthly
magazine in May. He noted that beginning January 1, all ads would now have toll-free numbers for
information, so the CVB will be able to track the effectiveness of the advertising. He briefly
referred to a new database tracking system that would provide more efficient use of the website (e -
marketing).
Mr. Galyon discussed a number of initiatives regarding convention services. He stated that
the website would provide an online survey for convention delegates, asking their opinions about
the hotels, convention center, and bureau services. He said the CVB would provide quarterly
updates on survey responses. In addition, the website would provide online housing submissions
for convention delegates.
Minutes - Regular Council Meeting
March 23, 2004 - Page 16
Mr. Galyon discussed a number of initiatives regarding convention and visitor services. He
mentioned the following new convention services: restaurant reservation booth; PC Name Badge
Program; and large welcome posters downtown. He also referred to a new hospitality training
program that is under development. Finally, he stated that a new online convention service center
would be available for delegates.
Mr. Galyon concluded his presentation by updating the Council on activities in media
relations. He said current projects included the filming of "The King", a feature film, for one week
in the city. He said Univision -Dallas will film a vacation options segment during the week (late
March -early April) that highlighted Corpus Christi as a vacation destination. Finally, he said The
Learning Channel had filmed a "While You Were Out" segment that would air in mid-April.
Mayor Neal remarked that he did not see the "All -America City" logo on the CVB's
advertising. Mr. Galyon replied that the logo was only on the CVB's website, but he would be sure
to add the logo to all other forms of advertising.
Mr. Colmenero noted that the January STR report showed that the city's hotel occupancy
rates were down. He asked Mr. Galyon if he knew what the projected trends were for this year. Mr.
Galyon replied that he thought the city could expect a slight increase in occupancy, from 1.5 to 2
percent. He said the construction on the convention center and arena had a negative effect on travel
this year. He thought the city could anticipate a rebound in 2007 and beyond.
Mr. Colmenero commented that the trend in the industry seems to be providing more
package travel. Mr. Galyon agreed, saying that the CVB was trying to generate more traffic to the
website to promote their new travel packages. Finally, Mr. Colmenero asked for a list of cities
participating in the Lamar Outdoor Advertising billboard campaign, which Mr. Galyon said he
would provide.
Mr. Kelly asked if the online housing submissions form only included listings for downtown
hotels. Mr. Galyon replied negatively, saying that it included hotels throughout the city. Mr. Kelly
asked if it included bed & breakfasts and condominiums. Mr. Galyon replied that the listing only
included hotels now, but they could be added later. Mr. Kelly asked if there were plans to expand
the online housing form for use by the general public, not just convention delegates. Mr. Galyon
said that the CVB planned to do this in the future.
Mr. Scott asked if the STR report provided data comparing January 2004 against January
2003. Mr. Galyon answered affirmatively. Mr. Scott asked if he could provide year-end figures for
2003. Mr. Galyon replied affirmatively, saying that Corpus Christi was overall down about 2
percent compared to 2002. Mr. Scott asked for a copy of the year-end report.
Mr. Scott noted that Shreveport, LA was up in the STR report, and he asked if they had
opened an arena recently. Mr. Prewitt answered affirmatively, saying that the CVB's eco -tourism
sales manager was going to Shreveport for a trade show, and he had asked her to investigate.
Finally, Mr. Scott asked City Manager Noe to provide a report on code enforcement
activities during Spring Break. City Manager Noe said it took a significant effort, and he thanked
staff for their work. City Manager Noe said he would provide a report later.
Minutes - Regular Council Meeting
March 23, 2004 - Page 17
Mr. Noyola thanked Mr. Galyon for saving $40,000 by streamlining operations. Mr. Noyola
asked if any part of the website was in Spanish. Mr. Galyon answered affirmatively, saying that the
Hispanic Chamber of Commerce were heading this effort.
Mr. Garrett asked Mr. Galyon if he could create a package to encourage tourists to stay an
additional day. Mr. Galyon replied that this was the goal of the CVB's new travel packages. Mr.
Garrett also asked for information on the location of the Lamar Outdoor Advertising billboard sites.
The next presentation was a 2"" Quarter FY 2003-04 Budget/Performance Report. Assistant
City Manager Mark McDaniel referred to a graph illustrating General Fund YTD Revenues. He
stated that 44.9 percent of budgeted revenue has been received. He noted that sales tax revenues had
increased by $455,000 through January, compared to budget. He said that since the report was
created, the city has received the February receipts, which indicate that the city is $556,0000 ahead
of projections. He said if the city were to stay ahead by this amount, than by year end the city would
be 2.7 percent over prior actuals. Mr. McDaniel also highlighted an increase in Solid Waste
Services revenues as a result of an unanticipated construction project. Finally, he mentioned a
rebound in municipal court revenues.
Regarding general fund expenditures, Mr. McDaniel stated that 47.3 percent of the budget
has been expended with 50 percent of the year completed. He said there were no major variances
at mid -year. He noted, however, that a significant increase in public safety retirements was
anticipated to lead to "drag -up" pay expenditures.
Mr. McDaniel reviewed the status of the enterprise funds. Regarding the water fund, he
noted a percent decrease in comparison to the same time last year due to an increased budget. He
said consumption had remained constant.
Regarding the airport fund, he remarked that there were revenue increases associated with
oil and gas leases, and overall improvements. He also noted an expenditure increase that was due
to the timing of a number of debt payments.
Regarding the ambulance fund, he noted an decrease in revenues due to delays in Medicare
and Medicaid payments, but he anticipated that the fund would balance out by the end of the year.
Mr. McDaniel said the golf fund was of special concern because both revenues and
expenditures were decreasing. He said the revenue decreases were due in part to above average
rainfall resulting in a decrease of rounds played, and also because of declining play in national
trends.
Mr. McDaniel discussed the status of the internal service fund, which are budgeted
allocations for services to internal customers. He said there were no significant variances with the
exception of the risk management fund, which reflected lower expenditures for health insurance
costs in comparison to the prior year.
Assistant City Manager McDaniel reviewed the status of the special revenues funds.
Regarding the hotel occupancy tax fund, he noted an increase in expenditures due to the debt service
associated with the expansion of the Convention Center. With regard to the Reinvestment Zone No.
Minutes - Regular Council Meeting
March 23, 2004 - Page 18
2 Fund, he pointed out a decrease in revenues associated with the timing of receipts. He also
highlighted an increase in expenditures associated with debt service for the Packery Channel
improvements. Regarding the arena facility, he pointed out an increase in expenditures associated
with the timing of debt service payments. Regarding the Crime Control District, he highlighted an
increase in expenditures which was due to higher personnel costs.
Mr. Kinnison asked for an estimate of the year-end total for FY 2003-04 for the hotel motel
occupancy tax fund, specifically breaking out the amount designated for the arena and convention
center expansion and the remaining portion for the general funds. Mr. McDaniel said he would
provide the information.
* * * * * * * * * * * * *
Mayor Neal deviated from the agenda, and announced the executive sessions, which were
listed on the agenda as follows:
27. Executive session under Texas Government Code Section 551.071 regarding Notice of
Enforcement Action, City of Corpus Christi Broadway Wastewater Treatment Facility, 1402
W. Broadway, Corpus Christi, Nueces County, Texas, TPDES Permit NO. 10401-005;
RN101610186, Docket No. 2003 -1347 -MWD -E; CCEDS Case No. 10113, with possible
discussion and action related thereto in open session.
28. Executive session under Texas Government Code Section 551.071 regarding implementation
of uniform pipeline fees, with possible discussion and action related thereto in open session.
29. Executive session under Texas Government Code Section 551.071 regarding franchise
agreement negotiations with AEP Central Power and Light Company, with possible
discussion and action related thereto in open session.
30. Executive session under Texas Government Code Section 551.071 regarding legal issues
relating to the options to either expand the J. C. Elliott Landfill or develop the Cefe
Valenzuela Landfill in an effort to address current landfill operating issues, with possible
discussion and action related thereto in open session.
The Council went into executive session.
* * * * * * * * * * * * *
The Council returned from executive session. Mayor Neal called for petitions from the
audience. Mr. John Reiss, 3217 Nassau, spoke regarding his concerns about illegal dumping by
contractors in the Tropic Isles area. Mr. Jack Gordy, 4118 Bray Drive, spoke regarding his concerns
about the Council's use of city funds to pay Chamber of Commerce and Hispanic Chamber of
Commerce membership dues. Mr. Sirfrederickvoneugeniusallabben King 7'h, 905 Cleveland Street
#4, thanked city staff for their work, and asked for information regarding the Council Member
District 1 seat. Mr. Carlos Torres, 6014 Ayers, spoke regarding his concerns about the aging Corpus
Christi Fire Department fire pumper and ladder truck fleet.
Minutes - Regular Council Meeting
March 23, 2004 - Page 19
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 26, a special presentation on options for the city's
landfill. City Secretary Chapa announced that Mr. Noyola would be abstaining from the vote and
discussion on this item. Assistant City Manager Ron Massey provided information comparing gate
tip fees among Texas cities that the Council had requested at the last meeting. He said Corpus
Christi was charging $26.50 a ton, $13.33 of which was being credited to the Municipal Solid Waste
System Service Charge (MSWSSC). Thus, the city's tipping rate is approximately $13.17 a ton.
He said the state average is $20. He noted that, according to the Solid Waste Digest, two landfills
in the San Antonio area were charging $22.25 and $23.64. Thus, he said the figures showed that the
city's tipping rate is not one of the highest in the state.
Mr. Massey provided information regarding the proximity of a landfill to an airport. He said
that a change to a section of Title 49 of the United States Code (Subtitle VII, Part A, Subpart III,
Chapter 447, 44718(d)) added a limitation on the construction of municipal solid waste landfills.
He said the law stated that there should be no landfills within 6 miles of a public airport that is
receiving federal grant funding under Chapter 471, the chapter under which the airport receives the
majority of its funding. He noted that the law provides for exemptions, but they would have to be
initiated by the State Aviation Agency to the Administrator of the Federal Aviation Agency (FAA).
Mr. Terrence Whatley, Airport Operations Manager, reported on his discussions with local
representatives of the FAA. Mr. Whatley stated that at issue was the past funding the city has
received for development of the airport. He said the city received the grant funding upon the
condition that they would comply with a number of grant assurances. He said one of the assurances
involved maintaining compatible use of the land surrounding the airport. He said the FAA has
determined that the establishment ofa municipal solid waste landfill that receives putrescible waste
near the airport would be an incompatible use. He said the consequences of not complying with the
grant assurances could involve not receiving further funding from the FAA for airport planning and
development, and could also result in the suspension of grant payments for existing grants. In
conclusion, he said the city had a responsibility to prevent incompatible land uses such as the
establishment of a municipal landfill. Mr. Whatley added that the FAA air traffic division was
concerned about air safety, as well as local airport users. Mr. Massey concluded that it was staff's
recommendation to proceed with the development of the Cefe Valenzuela landfill site.
Mr. Chesney asked if there were any examples of municipalities receiving exemptions to this
law. Mr. Whatley replied that to his knowledge, the FAA had not granted any exemptions because
they have historically taken a strong position in the interests of aviation safety. First Assistant City
Attorney Jay Reining added that the city's outside counsel on solid waste issues has indicated that
this law has halted numerous landfill construction sites around the country. He said that to counsel's
knowledge, the FAA had yet to grant any exemptions to the law, other than those authorized in
Alaska.
Mr. Chesney asked if the Navy was still opposed to the use of the Elliott landfill site. Mr.
Massey replied that the Navy operated turbo prop aircraft in and around Cabaniss Field, which are
highly susceptible to bird strikes. He said the Navy strongly preferred that the city cease landfill
operations in the proximity of Cabaniss Field.
Minutes - Regular Council Meeting
March 23, 2004 - Page 20
Mr. Chesney asked how much the city had received in prior years from federal grants.
Assistant City Manager Massey said he did not have an exact figure, but the city had recently been
approved to receive a $3.8 million grant from the FAA. Mr. Reining added that the city could lose
all federal funding if they did not comply with any of the grant assurances.
Mr. Chesney stated that he felt it was important to include, at some point, a discussion on
whether or not to privatize the city's landfill operations. Mayor Neal stated that the city first needed
to decide which site to develop before entering into a discussion on privatization. Mr. Massey stated
through the RFP process, staff had cost estimates they could provide on privatization.
Mr. Kinnison commented that in 1999, when the discussion on the landfill first took place,
the Council decided to pursue the Cefe Valenzuela landfill site after weighing concerns about the
airspace issues, Navy air traffic, and future neighborhood development in the Elliott landfill area.
He asked if there were any plans to develop the area around the Elliott landfill. Mr. Massey replied
that he understood that developers were looking at developing the Chapman Ranch/ Weber area, and
the area south of the Oso. Mr. Kinnison said the plan was to still have a transfer station in this area,
and he asked how the station would affect future development. Mr. Massey replied that the transfer
station would involve a cleaner operation than a landfill. It would be like an area with a higher
concentration of trash containers and more traffic. He did not feel it would be incompatible with
the area.
Mr. Kinnison asked what could happen to the Cefe Valenzuela site's permit if the city were
to delay action on the development of the landfill. Mr. Massey replied that the TCEQ has
entertained the idea of placing time limits on permits for Landfills that have not been constructed.
Mr. Kinnison asked if city was still in a position to recommence negotiations with BFI,
asking them to provide options within a 60 -day time line. Mr. Massey replied affirmatively. Mr.
Kinnison asked if staff still felt, in light of the recent discussion, that the development of the Cefe
Valenzuela was a good decision. Mr. Massey replied affirmatively, saying it was a good investment.
Mr. Kelly stated that his primary concern regarding the development of the Cefe Valenzuela
landfill was that the tipping fee was estimated to increase to $54, in the worst case scenario. He said
he had not seen a comparison between the development of Cefe and the other, private option
presented last week. Mr. Massey said that if the city was able to capture 400,000 tons of waste
annually for the next 12 years, the estimated tipping fee would be $39.78, including the capital costs
for closing Elliott. Mr. Kelly stated that it was difficult to compare options without more
information from the other private option. Mr. Massey stated that since the city has an open RFP
process, they cannot obtain more detailed information on the other private option.
Mr. Colmenero expressed his concern that if the city continued its negotiations with BFI,
landfill operations in the area could become a potential monopoly. Mr. Colmenero also expressed
his concern that the city had not progressed further in their plan for the landfill, and he wondered
why the Council did not have more options to choose from. City Manager Noe replied that when
the RFP was issued, the decision had been to invest in the Cefe Valenzuela landfill. He said once
the discussion turned to cost, then the Council wanted to consider other options to try to keep the
rates lower.
Minutes - Regular Council Meeting
March 23, 2004 - Page 21
Mr. Scott asked why staff had not previously presented information about the new federal
law prohibiting landfill development six miles from an airport. Mr. Massey replied that staff had
been unaware of the new law until they engaged with discussions with the FAA about the airport.
Mr. Reining added that the FAA law applies to new landfills only; there was an exemption for the
expansion of an existing landfill.
Mayor Neal asked for public comment. Mr. Skip Mosichek of Bay Area Fellowship Church
spoke regarding his concern about the effects of a transfer station on their future development of a
new facility on the corner of Weber Road and the Crosstown extension. Mr. Massey explained that
the transfer station was actually an advantage because it would lessen the number of large trucks
going through the area. Mr. Kaplan stated that the landfill was permitted to be open 24 hours a day,
seven days a week, but he presumed that the traffic would be significantly less on Sundays. Mr.
Colmenero expressed his concern that the main road in the area was in good condition. Mayor Neal
noted that this was a state road, and the city needed to work with the MPO to ensure that it would
be in good condition.
Mr. Bill Davis with Absolute Waste Services spoke regarding his concern that the initial RFP
process was too narrow in focus. Mr. Ralph Diaz with C.C. Disposal asked if only "city" trucks
were going to be allowed to use the transfer station. Mr. Massey replied negatively, saying the
transfer station was open to everyone. Mr. John Torrey with Captain Hook Dumpsters spoke
against the development of the Cefe Valenzuela landfill, and advocated the private plan being
offered by Dr. Gulley.
Dr. Bryan Gulley spoke regarding his landfill option for the Council's consideration. He
introduced Mr. David Klein with Santek Environmental who provided a presentation on the public-
private partnership the city could enter with them to save approximately $96 million over 30 years.
Mr. Klein discussed the partnership objectives for a Corpus Christi-Santek partnership. He
said the goal was to provide a professional, full-service landfill management dedicated to preserving
and enhancing the city's existing solid waste infrastructure. In addition, he said the objective was
to stabilize the city's position in an evolving Coastal Bend solid waste marketplace. Finally, he said
his company's goal was to protect local residents and businesses from escalating disposal fees in the
future.
Mr. Klein explained the key elements of the partnership. He said Santek would become the
city's operator for J.C. Elliot landfill, but the city would maintain ownership of the landfill. He said
Santek would provide 480 acres for expansion of the landfill operation. With the city's support, Mr.
Klein said Santek would seek a TCEQ permit for the landfill expansion. He said Santek would
permit, design, and construct the expansion at no cost to the city.
Mr. Klein mentioned that Santek's pro forma showed that the city could save $96 million
over 30 years. He said this could be done in part if the city agrees to pay Santek a fixed disposal fee
per ton (plus annual CPI inflation adjustments) on city -collected waste for the life of the landfill
facility. He said Santek was willing to give the city $2.5 million towards the closing of Elliott
landfill. He also said Santek would provide $864,738 for post -closure care for the Elliott site. He
said Santek would operate the landfill facility on the 480 acres for the city, while providing the post -
closure care for Elliott.
Minutes - Regular Council Meeting
March 23, 2004 - Page 22
Mr. Klein said Santek's estimates for the permitting and construction of the Type 4 landfill
on 60 acres was $6 million. He said they would provide the funds to purchase and make a land
acquisition on behalf of the city at $1.8 million. He said they estimated that the future development
of the site of a Type 1 landfill on possibly 120 acres at $24 million.
Mr. Klein said Santek believed a key point was that their proposal would eliminate the need
for the capital costs to develop the Cefe Valenzuela landfill, at an estimated cost of $26.3 million.
In addition, their proposal would eliminate the need to purchase equipment for the Cefe landfill,
estimated at $2 million. He also their plan would eliminate the capital expense to build a transfer
station estimated at $2 million. They would also eliminate the transfer station operation costs for
Cefe estimated at $17.6 million. Another benefit is a continuous revenue stream. He also said
Santek would be filling to pay 5 percent in host fees over projections, estimated at $10 million. He
said they would pay for the $800,000 equipment lease on the current equipment used at Elliott. He
said these figures amounted to $96 million over 30 years.
In response to Mr. Chesney's question, City Manager Noe replied that Santek's claim to save
the city $26.3 million to eliminate the capital costs for the Cefe landfill was misleading, because
they were taking credit for the savings when, in fact, they were using the funds to pay for the
development of their landfill. Mr. Klein replied that Santek considered the proposal as a 30 year
cost savings, with $26.3 million saved in Years 0-10 and the $24 million was saved in Years 11-30.
Mr. Kaplan said that staff considered projections beyond ten years to be "a shot in the dark".
A discussion ensued over the veracity of Santek's claim that they were giving the city $26.3
million in Years 0-10. Mr. Chesney stated that it appeared that Santek was recouping the money
through its tipping fees. Mr. Klein said Santek estimated that the tipping fees would be $20 per ton
($17.30 without the state fees and host fees). Mr. Chesney said the city's tipping fee was $12 per
ton without fees, so Santek would be making a profit. Mr. Scott said that Mr. Klein should represent
this openly. Mr. Chesney said it was fine if Santek was making a profit, but it was misleading for
Mr. Klein to claim that he was saving the city $40 million, when in effect, they would recoup the
money. Mr. Klein clarified that the city would not be paying all fees; rather, the tipping fees would
be paid by anyone using the landfill.
Mr. Chesney observed that the $2.5 million that Santek said they were giving the city
towards closing costs for Elliott was also going to be recouped in the tipping fees. Thus, he said it
would be more accurate to say that Santek was fronting the money to the city, not giving it to the
city. The same applied to the $6 million for permitting and construction of the landfill.
Mr. Chesney asked for more information on the host fees Santek said it would be providing
a $10 million savings. Mr. Klein explained that the city estimated that the landfill could process
181,000 tons based on the current market. He said that if Santek could capture an additional
200,000 tons within the market, they would be willing to pay the city 5 percent of the gross receipts
in host fees over the entire life of the facility. Mr. Kaplan stated that he did not understand how
Santek could guarantee the tipping fee based upon tonnage for which they did not have a contract.
He said he did not understand from where the extra tonnage in the area would come. City Manager
Noe asked Mr. Klein to explain what the $10 million savings was based on in terms of the life of the
facility, the tonnage over and above our tonnage, and the rate Santek was charging. Mr. Klein
replied that they estimate that the 480 -acre facility would have a 30 -year life. He said they would
Minutes - Regular Council Meeting
March 23, 2004 - Page 23
charge the rate the city was currently charging on Elliott, $25.50 per ton plus the state fee of $1.25
per ton, for any tonnage over 181,000 tons. Mr. Kaplan said that based on his calculations, Santek
would have a difficult time retiring their debt.
Mr. Chesney concluded that at least $50 million of the $96 million Santek was claiming to
save the city with their proposal was not truly cost savings to the city, because the citizens would
have to pay either through increased fees or through an increase in debt. Mr. Klein disagreed, saying
that the avoidance of the capital costs to develop the Cefe landfill was a true savings.
Mayor Neal asked Santek if they would provide the city with full financial disclosure. Mr.
Rob Burnette, President of Santek, stated that he would provide the information, but he would need
to speak with their legal counsel to ensure that it did not become public record, since they were
private company. Mayor Neal said the financials would have to become public record. He repeated
that if Santek wanted the city to enter into a long-term public-private partnership, he wanted them
to provide the city with full financial disclosure. Mr. Burnette repeated that he would need to speak
with counsel.
Mr. Kelly observed that the $20.75 per ton tipping fee that Santek was charging did not
include the $14.11 MSWSSC. Mr. Klein said Santek would not be involved in charging the
MSWSSC fee. He said it was the city's choice whether or not to charge it. Mr. Kelly asked Mr.
Massey what would happen if the city did not charge the MSWSSC fee. Mr. Massey replied that
the city would more than likely operate at a deficit if they did not charge the MSWSSC. Mr. Kelly
said that he had understood that he was comparing the $20.75 per ton Santek was offering with the
city's charge of $26.50. He said it upset him to learn that if the city is to maintain its revenue
stream, it must continue to charge the MSWSSC fee, which brings the tipping fee to $34 per ton.
City Manager Noe remarked that the city would only control their rates, not the rate Santek would
charge the private haulers.
Mr. Scott asked Mr. Klein to discuss the legal issues of permitting a landfill near the airport,
in light of today's discussion. Mr. Klein said that Santek, in partnership with the city, would make
every effort to seek an exemption from the FAA to build the landfill. He believed they would
receive the permit. Mr. Reining said that the city would run the risk of being disbarred from
receiving any federal funding, or having to pay back federal funds already received, if they were to
proceed with plans to build the airport.
Mayor Neal asked for public comment. Mr. Sirfrederickvoneugeniusallabben King 7th, 905
Cleveland Street #4, spoke regarding his concerns about lost revenues involving the landfill, and
spoke against the privatization of landfill operations.
Ms. Cooper made a motion to proceed with the development of the Cefe Valenzuela site,
seconded by Mr. Kinnison. City Secretary Chapa polled the Council for their votes as follows:
Minutes - Regular Council Meeting
March 23, 2004 - Page 24
26. MOTION NO. 2004-113
Motion to proceed with the development of the Cefe Valenzuela landfill site.
The foregoing motion was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kelly, Kinnison, and Scott, voting "Aye"; Noyola abstained.
* * * * * * * * * * * * *
Mayor Neal deviated from the agenda, and asked City Secretary Chapa to poll the Council
for their votes on the following motions resulting from the executive sessions:
27. MOTION NO. 2002-114
Motion authorizing the City Manager, or the City Manager's designee, to contribute $66,125
to fund the Supplemental Environmental Project Agreement between the Coastal Bend Bays
and Estuaries Program, Inc. and Texas Commission on Environmental Quality, as required
by the City's Agreed Order with the Texas Commission on Environmental Quality relating
to Notice of Enforcement Action, City of Corpus Christi Broadway Wastewater Treatment
Facility, 1402 W. Broadway, Corpus Christi, Nueces County, Texas, TPDES Permit No.
10401-005; RN101610186, Docket No. 2003 -1347 -MWD -E; CCEDS Case No. 10113.
The foregoing motion was made, seconded and passed with the following vote: Neal,
Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
28/29. MOTION NO. 2004-115
Motion authorizing the City Manager to execute an amendment to the legal services
agreement with James R. Bray to represent the City in negotiations with AEP Central Power
and Light Company for a new franchise agreement, for legal work relating to the
implementation of uniform pipeline fees, and other ongoing projects, at an hourly rate of
$50.00, plus expenses, subject to certification of funds.
The foregoing motion was made, seconded and passed with the following vote: Neal,
Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
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Mayor Neal called for the City Manager's report. City Manager Noe announced that on
March 11, the FAA named the city's airport as Airport of the Year. He said the FAA would come
to Corpus Christi on April 13 to formally present the award during a Council meeting. He said this
Friday at 11:00 a.m., a Tree Planting Ceremony would be held at the Korean Baptist Church to
commemorate the completion of the NIP program in the Williams/Staples/Holly/Everhart area. He
thanked those who expressed their sympathies at the loss of Officer Segovia last week.
City Manager Noe stated that the following items were scheduled for consideration on March
30: presentation on the Velocity Games; code amendments regarding littering; and Padre Desal
Minutes - Regular Council Meeting
March 23, 2004 - Page 25
facility update.
Mayor Neal called for Council concerns and reports. Mr. Chesney asked the Mayor about
arranging a time for a presentation for the West Oso Boys Basketball team. Mayor Neal said he had
discussed with Mr. Noyola, and he said he would participate. Mr. Chesney reminded the Mayor that
he would like to discuss the merits of the privatization of landfill operations. Mayor Neal said they
would schedule it once the city was ready to take the next step in the discussions.
Mr. Garrett publicly commended the police officers directing traffic on the Island during
Spring Break. He wished a speedy recovery to Officer Kevin Price, who was hurt recently. He
asked if it would be possible to extend the permit to use field dirt to fill in properties for longer than
one week ($250 per week). City Manager Noe said he would look into the matter.
Mr. Colmenero said he had heard reports about a hole at the intersection of Clark and
Vanderbilt streets. He also gave Mr. Noe a letter regarding a hole near a home on Ohio Street. Mr.
Colmenero said he had received a letter from a woman in Robstown asking if a closed captioning
signboard would be provided at the new arena. City Manager Noe said staff had received the same
letter, and was preparing a response. Finally, Mr. Colmenero said a citizen reported that he had
received a traffic citation in an H.E.B. parking lot. City Manager Noe said he would investigate.
Mr. Noyola congratulated the West Oso Bears for going to the state tournament. He also
congratulated all the other basketball teams for a fine season. Mr. Noyola asked if staff had spoken
to Mr. Ram Chavez about a building for the G.I. Forum. Assistant City Manager Margie Rose said
she had spoken with Mr. Chavez, and he said he would submit a letter explaining what they needed.
Mr. Noyola said he had met with a county commissioner recently, and he hoped the Commissioners'
Court would place the city on their agenda to discuss county jail issues. If not, he suggested that the
Council hold a joint meeting with the Commissioners' Court for ajail discussion.
Mr. Kinnison asked if it would be possible to meet on April 6 instead of April 13. Mr. Kelly
spoke in support of Mr. Kinnison's request. Mayor Neal said he would prefer to keep the meeting
date on April 13, but the Council would take Mr. Kinnison's request under advisement.
Ms. Cooper expressed her concern that the level of gang violence and illegal drug activity
in the community seemed to be escalating. City Manager Noe replied that the first months of the
year have been more violent than usual. He said he would provide a report on the matter.
Mayor Neal thanked the County Judge for promptly responding to the city's request
regarding wastewater issues. Mayor Neal also asked City Attorney Fischer to ensure that Mr.
Gordy's issues with the Council's Chamber of Commerce membership dues be resolved once and
for all.
There being no further business to come before the Council, Mayor Neal adjourned the
Council meeting at 3:55 p.m. on March 23, 2004.
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