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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". * * * * * * * * * * * * * 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. * * * * * * * * * * * * *