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HomeMy WebLinkAboutMinutes City Council - 06/08/20041 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 June 8, 2004, which were approved by the City Council on June 15, 2004. WITNESSETH MY HAND AND SEAL, on this the 15'h day of June 2004. Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting June 8, 2004 - 10:00 a.m. PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Rex Kinnison Council Members: Brent Chesney (Arrived at 10:05 a.m.) Javier D. Colmenero Melody Cooper Henry Garrett Bill Kelly Jesse Noyola Mark Scott 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 Reverend E.F. Bennett 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 May 25, 2004. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * * * * Mayor Neal referred to Item 2 and the following board appointments were made: Civil Service Board/Commission Cydney Farrar (Reappointed) Commission on Children & Youth Captain Janie Suarez (Appointed) Amanda Stukenberg (Appointed) Brian Silva (Appointed) Drew Reining (Reappointed) C.C. Regional Transportation Authority John Buckley (Reappointed) Crystal Lyons (Appointed) Roland Barrera (Reappointed) John Longoria (Appointed) Davie Cissna (Appointed) Food Service Advisory Committee Suzanne Gilliam (Reappointed) Henri Mae Tillis (Appointed) Minutes - Regular Council Meeting June 8, 2004 - Page 2 Mayor Neal called for consideration of the consent agenda (Items 3-21). City Secretary Chapa announced that Council Member Kelly was abstaining from the discussion and vote on Items 17 and 18, and Council Member Noyola was abstaining from the discussion and vote on Item 21. Mayor Neal called for public comment. Mr. John Alford and Mr. Robert Garcia requested that Item 3 be discussed. Mr. Bill Kopecky requested that Item 7 be discussed. Council members requested that Items 13 and 19 be discussed. A motion was made and passed to approve Items 3 through 21, constituting the consent agenda, except for Items 3, 7, 13, and 19, which were pulled for individual consideration. City Secretary Chapa polled the Council for their votes as follows: 4.a. MOTION NO. 2004-209 Motion approving a supply agreement with SBC Global Services, Inc., of Corpus Christi, Texas for local telephone service, long distance telephone service and intemet services based on Request for Proposal No. BI -0139-03 for an estimated three year expenditure of $729,802.38 of which $40,709.41 is budgeted for the remainder of FY 2003-2004. The term of the agreement is three years with an option to extend the contract for up to two additional twelve-month periods subject to the approval of the contractor and the City Manager or his designee. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 4.b. MOTION NO. 2004-210 Motion approving a supply agreement with SBC Global Services, Inc., of Corpus Christi, Texas for data connection services based on the Cooperative Purchasing Agreement with the State of Texas for an estimated two year expenditure of $92,640 of which $7,720 is budgeted for the remainder of FY 2003-2004. The term of the agreement is for two years with an option to extend the contract for up to three additional twelve-month periods subject to the approval of the contractor and the City Manager or his designee. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 5.a. RESOLUTION NO. 025776 Resolution authorizing the City Manager or his designee to accept a grant from the Texas Department of Transportation for an Impaired Driving Mobilization Selective Traffic Enforcement Project (STEP) grant for DWI enforcement within the Police Department and to execute all related documents. The foregoing resolution was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". Minutes - Regular Council Meeting June 8, 2004 - Page 3 5.b. ORDINANCE NO. 025777 Ordinance appropriating $25,000 from the Texas Department of Transportation for funding of an Impaired Driving Mobilization Selective Traffic Enforcement Project (STEP) grant for DWI enforcement overtime within the Police Department in the No. 1061 Police Grants Fund. 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". 6.a. RESOLUTION NO. 025778 Resolution authorizing the City Manager or his designee to accept an amendment for a grant increase in the amount of $70,632 to grant contract No. 470-04004 with the Texas State Library and Archives Commission to augment funds to allow the purchase of library materials for fifty-two (52) member libraries and to continue basic operations of the South Texas Library System. The foregoing resolution was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 6.b. ORDINANCE NO. 025779 Ordinance appropriating an additional $70,632 in an amendment to contract No. 470-04004 from the Texas State Library and Archives Commission in the No. 1068 Libraries Grant Fund to augment funds to allow the purchase of library materials for fifty-two (52) member libraries and to continue basic operations of the South Texas Library System. 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". 8. MOTION NO. 2004-214 Motion authorizing the City Manager or his designee to execute Amendment No. 1 to the Contract for Professional Services with LNV Engineering, Inc., of Corpus Christi, Texas in the amount of $107,650, for a total restated fee of $229,850 for the Area Street and Drainage Improvements along the following streets: (bounded by Sunnybrook, Evelyn, Gollihar, and Kostoryz) Helen - Stage 2, Phase 2B Theresa - Stage 2, Phase 2B The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". Minutes - Regular Council Meeting June 8, 2004 - Page 4 9. MOTION NO. 2004-215 Motion authorizing the City Manager or his designee to execute a construction contract with Garrett Construction, of Ingleside, Texas in the amount of $514,130.60 for the Lake View Drive Drainage Improvements project. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 10.a. ORDINANCE NO. 025780 Ordinance appropriating $337,626.46 from the unappropriated bond proceeds and unappropriated interest earnings in Water 1994 Capital Improvement Program Fund No. 4081 for the North Navigation Pumping Plant Contract No. 3 - 36" Diameter Water Transmission Main; amending Capital Budget adopted by Ordinance No. 025647 by increasing appropriations by $337,626.46. 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". 10.b. MOTION NO. 2004-216 Motion authorizing the City Manager or his designee to execute Change Order No. 8 with Jalco, Inc., of Houston, Texas in the amount of $376,541 for the North Navigation Boulevard Pumping Plant Contract No. 3 - 36" Diameter Water Transmission Main (North Navigation Boulevard Pumping Plant to Caldwell Street Pumping Plant). The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 11. MOTION NO. 2004-217 Motion authorizing the City Manager or his designee to execute a Utility Easement Instrument with Frank T. Shumate, Jr. for Parcel 402B, in the total amount of $30,000, necessary for the Southside Water Transmission Main, Phase 4, Project 8390, and for other municipal purposes. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". Minutes - Regular Council Meeting June 8, 2004 - Page 5 12. MOTION NO. 2004-218 Motion authorizing the City Manager or his designee to execute a Utility Easement Instrument with Patricia Ray Peterson Nuss and Christy Ann Peterson Brown for Parcel 443, in the total amount of $87,659, necessary for the Southside Water Transmission Main, Phase 4a, Project 8425 and for other municipal purposes. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 14. ORDINANCE NO. 025782 Ordinance appropriating $2,981,691.76 in unappropriated bond proceeds in Fund No. 3430 Wastewater Capital Improvement Program to fund various approved wastewater capital projects; amending Capital Budget adopted by Ordinance No. 025647 by increasing appropriations by $2,981,691.76. 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". 15. MOTION NO. 2004-220 Motion authorizing the City Manager or his designee to execute Change Order No. 1 to a construction contract with Ramos Industries, of Pasadena, Texas in the amount of $75,984 for Force Main Repairs/ Replacement Line C, Phase 2 - Kenith Circle to Cimarron Boulevard. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 16. MOTION NO. 2004-221 Motion authorizing the City Manager or his designee to execute Amendment No. 1 for engineering services with LNV Engineering, of Corpus Christi, Texas for a total fee not to exceed $361,816 for the Water System Interactive Hydraulic Model and Analysis Project. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". Minutes - Regular Council Meeting June 8, 2004 - Page 6 17. MOTION NO. 2004-222 Motion authorizing the City Manager or his designee to execute Change Order No. 10 for the Multi -Purpose Arena in the amount of $93,457 with Fulton Coastcon, Joint Venture, of Corpus Christi, Texas for various architectural, electrical, mechanical and structural modifications. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly abstained. 18. MOTION NO. 2004-223 Motion authorizing the City Manager or his designee to execute Change Order No. 9 with Moorhouse/Beecroft, Joint Venture, LLC, of Corpus Christi, Texas in the amount of $281,478 for the Convention Center Expansion and Rehabilitation for various architectural, electrical, mechanical, structural and other modifications. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly abstained. 20. ORDINANCE NO. 025784 Ordinance abandoning and vacating a 2,682 -square foot portion of a 10 -foot wide utility easement out of Lots 24-25, Block 5, Saxet Heights No. 2 and Lot 1, Saxet Community Center Annex "A"; requiring the owner, Corpus Christi Independent School District, to comply with the specified conditions and replat the property within 180 days at owner's expense. 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". 21. ORDINANCE NO. 025785 Amending the Code of Ordinances, Chapter 9, Aviation, Section 9-32, Trespass Upon Runways, Ramps, Taxiways, etc; providing for criminal penalties; and establishing an effective date. (First Reading 05/25/04) The foregoing ordinance was passed and approved on its second reading with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, and Scott, voting "Aye"; Noyola abstained. Mayor Neal opened discussion on Item 3 regarding a supply agreement for lubricating oils, greases, and antifreeze for city vehicles. Mr. John Alford with Arguindegui Oil Company and Mr. Robert Garcia with Arnold Oil Company spoke against the bid awards for the lubricant portion of the bid because their companies could provide more cost savings. Director of Maintenance Services Jim Davis replied that the issue was the interval for oil changes and the type of oil being used in city Minutes - Regular Council Meeting June 8, 2004 - Page 7 vehicles. City Manager Noe added that the Mr. Alford and Mr. Garcia were proposing to achieve the cost savings primarily by extending the interval between oil changes, and the city was not comfortable with this proposal. City Secretary Chapa polled the Council for their votes as follows: 3. MOTION NO. 2004-208 Motion approving supply agreements for lubricating oils, greases and antifreeze in accordance with Bid Invitation No. B1-0051-04, with the following companies for the following amounts. Awards are based on low bid and low bid meeting specifications for an estimated annual expenditure of $92,574.48 of which $15,429.08 is budgeted in FY 2003- 2004. The term of the agreement shall be for twelve months with an option to extend for up to two additional twelve-month periods subject to the approval of the suppliers and the City Manager or his designee. Funds have been budgeted by using departments in FY 2003- 2004. Arnold Oil Company, Inc. Corpus Christi, TX Groups: 4.0, 5.0, 6.0, 9.0, 11.0 and 13.0 $44,839.20 Arguindegui Oil Co. II LTD. Corpus Christi, TX Group: 7.0 $8,304 Grand Total: $92,574.48 Oil Patch Petroleum, Inc. Corpus Christi, TX Groups: 3.0, 8.0, 10.0 14.0 and 15.0 $28,308 Leyendecker Oil, Inc. Corpus Christi, TX Groups: 1.0, 2.0 and 12.0 $11,123.28 The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, and Noyola, voting "Aye"; Scott voting "No". Mayor Neal opened discussion on Item 7 regarding the Northside/Port area infrastructure improvements project. Mr. Bill Kopecky, 3609 Topeka, expressed his concern that this project was was supporting the arena and baseball stadium projects, yet was not included in the arena and baseball stadium project costs. He said in the future, the voters should be informed of the actual project costs. City Secretary Chapa polled the Council for their votes as follows: 7.a. MOTION NO. 2004-211 Motion authorizing the City Manager or his designee to execute a Construction Contract with Jalco, Inc., of Houston, Texas in the amount of $5,355,307.30 for the Northside/Port Area Infrastructure Improvements. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". Minutes - Regular Council Meeting June 8, 2004 - Page 8 7.b. MOTION NO. 2004-212 Motion authorizing the City Manager or his designee to execute Change Order No. 1 to a Construction Contract with Jalco, Inc., of I louston, Texas in the amount of $317,479.10 for the Northside/Port Area Infrastructure Improvements. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 7.c. MOTION NO. 2004-213 Motion authorizing the City Manager or his designee to execute an Inspection Services Contract with Goldston Engineering, Inc., of Corpus Christi, Texas in an amount not to exceed $260,000 for the Northside/Port Area Infrastructure Improvements and Resaca Lift Station and 48" Wastewater Gravity Line projects. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". Mayor Neal opened discussion on Item 13 regarding a change order for the Padre Island pumping station improvement project. Council Member Scott asked for a report on this project. Mr. Jon Heckler with Carrollo Engineers stated that this change order was a continuation of the near- term improvements for water service to Padre Island. He asked Mr. Dan Leyendecker with LNV, Incorporated to provide more information. Mr. Leyendecker briefly reviewed the recommended changes to the project, stating that the Texas Commission on Environmental Quality (TCEQ) was now requiring two pumps for redundancy purposes. He noted that the current pump station capacity was 1.6 mgd, but the additional pump would increase the capacity to 12 mgd. He emphasized, however, that the pumps would only address water pressure needs, not supply capacity, which must still be addressed with other projects. Mr. Leyendecker reported that the goal was to have one pump operational by June 30, 2004. He said the team felt, however, that this goal would not be possible with the current equipment, so a change order was necessary. Mr. Leyendecker stated that the construction completion date for all Padre Island pump station construction was September 15, 2004. He said a temporary pumping system would be used until the proposed improvements were complete. Council members then asked a number of questions. City Secretary Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting June 8, 2004 - Page 9 13.a. ORDINANCE NO. 025781 Ordinance appropriating $1,857,606.51 from unappropriated bond proceeds and unappropriated interest earnings in Water 1995 Capital Improvement Program Fund No. 4082 for the Padre Island Pumping Plant Improvements project; amending Capital Budget adopted by Ordinance No. 025647 by increasing appropriations by $1,857,606.51. 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". 13.b. MOTION NO. 2004-219 Motion authorizing the City Manager or his designee to execute Change Order No. 6 with Laughlin -Thyssen, Inc. of Houston, Texas in the amount of $1,816,491.94 for the Padre Island Pumping Plant Improvement project. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". Mayor Neal opened discussion on Item 19 regarding the beach festival permit for "C Sculptures". Council Member Scott asked what measures the city was taking to enforce the anti- littering ordinance. Mr. Matt Larden, General Manager for C-101 radio station, provided a report on their station's efforts to encourage attendees not to litter. First, he played an anti -littering commercial that was running on the air. Then he introduced Mr. Dan Rios, also with C-101, who reported on a number of other efforts as follows: providing attendees with free trash bags and a trash station; a trash collection contest; and volunteer teams collecting trash on the Monday and Tuesday following the event. He also invited the Council to attend a VIP party for the event on Thursday at 8:00 p.m. at the Havana Club. City Secretary Chapa polled the Council for their votes as follows: 19. ORDINANCE NO. 025783 Ordinance authorizing the issuance of a beach festival permit to Clear Channel Communications, Inc. for "C Sculptures," on the Gulf Beach at Newport Pass County Park. 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 referred to Item 22, and a motion was made, seconded and passed to open the public hearing on the following zoning case: Minutes - Regular Council Meeting June 8, 2004 - Page 10 Case No. 0504-01, Robert D. Dickson, Jr.: A change of zoning from a "R -1B" One -family Dwelling District to an "1-2" Light industrial District. The property is in Noakes Partition, being 4.90 acres out of Tract 4, located on the north side of Up River Road (Interstate Highway 37), approximately 400 feet west of Violet Road. City Secretary Chapa said the Planning Commission and staff recommended the denial of the "I-2" Light Industrial District, and in lieu thereof, approval of a "B-4" General Business District with a Special Permit for warehouses and limited outside storage subject to a site plan and four (4) conditions. No one appeared in opposition to the zoning change. Mayor Neal asked if the applicant was in agreement with the Planning Commission and staffs recommendations. Assistant Director of Development Services Michael Gunning replied affirmatively. Ms. Cooper made a motion to close the public hearing, seconded by Mr. Scott, and passed. Mr. Chapa polled the Council for their votes as follows: 22. ORDINANCE NO. 025786 Amending the Zoning Ordinance, upon application by Robert D. Dickson, Jr., by changing the zoning map in reference to 4.90 acres out of Tract 4, Noakes Partition from "R -1B" One - family Dwelling District to "B-4" General Business District with a Special Permit for warehouses and limited outside storage subject to a site plan and four (4) conditions; 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 referred to Item 23, and a motion was made, seconded and passed to open the public hearing on the following zoning case: Case No. 0504-02 Farrell M. Smith: A change of zoning from an "I-2" Light -Industrial District to an "I-3" Heavy Industrial District. The property is in H. B. Shepard Farm Lots, being 10 acres out of Lot 9, located along Bronco Road and 3,050 feet north of State Highway 44. City Secretary Chapa said the Planning Commission and staff recommended the denial of the "I-3" Heavy Industrial District, and in lieu thereof, approval of an "I-2" Light -Industrial District with a Special Permit for an asphalt concrete mixing plant with aboveground fuel tanks and storage, subject to a site plan and four (4) conditions. No one appeared in opposition to the zoning change. Ms. Cooper made a motion to close the public hearing, seconded by Mr. Colmenero, and passed. Mr. Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting June 8, 2004 - Page 11 23. ORDINANCE NO. 025787 Amending the Zoning Ordinance, upon application by Farrell M. Smith, by changing the zoning map in reference to H. B. Shepard Farm Lots, being 10 acres out of Lot 9, (currently zoned "1-2" Light -Industrial District) by granting a Special Permit for an asphalt concrete mixing plant with aboveground fuel tanks and storage, subject to a site plan and four (4) conditions; 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 referred to Item 24, and a motion was made, seconded and passed to open the public hearing on the FY 2004-2005 budget adopted by the Crime Control and Prevention District Board of Directors. There were no comments from the audience. Mr. Noyola made a motion to close the public hearing, seconded by Mr. Chesney, and passed. Mr. Kinnison asked if there had been any difficulty keeping city marshal positions filled. Ms. Mariah Boone with the Juvenile Assessment Center replied affirmatively, saying that it had been difficult to find individuals who meet their qualifications. Commander Bryan Smith added that there was a limited pool of qualified applicants, and there were various agencies vying for candidates. * * * * * * * * * * * * * Mayor Neal referred to the presentation on the day's agenda, an overview of Flicks in the City, a joint venture between the city, Corpus Christi Focus, an independent organization interested in the development of downtown, and the Downtown Management District (DMD). Ms. Kendra Kinnison with Corpus Christi Focus stated that the purpose of the project was to bring new audiences to the downtown area to enjoy family entertainment. The entertainment would include free outdoor movies projected on the old Ward's building (on the corner of Chaparral and Schatzel Streets), music by local bands, a children's area, and concessions. Ms. Kinnison stated there were six events scheduled during the summer, each built around a specific theme. Ms. Kinnison provided a partial list of sponsors for the events. She also thanked the city, especially the park and recreation department, and Mr. J.J. Goetsch with the Corpus Christi Hooks, for their assistance. She also reviewed a diagram of the event layout Ms. Kinnison reported that the inaugural event was scheduled on June 12, featuring a baseball theme and movie, music by Tracie Lynn, kids activities, and a raffle for a Nolan Ryan baseball. Finally, Ms. Kinnison discussed their marketing efforts. She said the group was focusing its efforts on effective marketing through commercials, radio spots, ticket flyers, posters, and newspaper and visitor guide ads Mayor Neal suggested making arrangements for off-site parking because the program had Minutes - Regular Council Meeting June 8, 2004 - Page 12 been extremely successful in other cities, and he felt it would also be popular here. Ms. Kinnison replied that the group was negotiating with the owners of two adjacent parking garages to provide parking and, depending on the demand, would also discuss off-site parking with the Regional Transportation Authority. Mayor Neal spoke in support of the project and thanked Ms. Kinnison and her group for their efforts. City Manager Noe thanked Assistant City Manager Margie Rose and the park and recreation staff for their efforts as well. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 26, a architectural and engineering services contract for a number of airport improvement projects. City Secretary Chapa announced that Council Member Noyola was abstaining from the vote and discussion on this item. Assistant Director of Engineering Services Kevin Stowers reported that the city had used a multi-year engineering contract to take advantage of year-end FAA discretionary funds. He said the FAA required that the contract be awarded and the funds encumbered in a short period of time. Thus, he said the time constraints required the city to have a consultant already under contract to proceed with such projects as funding becomes available. Mr. Stowers said proposals were received from six teams, which were subsequently narrowed down to four teams for review by the selection committee. Of the four teams, he said that Pierce Goodwin Alexander & Linville (PGAL) were ranked as having the best qualifications by the selection committee. Mr. Stowers reported that the four initial projects to be bid during FY 2004-2005 were as follows: Runway 13/31 rehabilitation, blast pads, and shoulders improvements; airfield drainage improvements, Phase 3; Runway 13 localizer relocation; and CCIA master plan update. Mayor Neal asked for a status report on the covered parking project. Mr. Stowers answered that staff was in the final stages of obtaining the necessary insurance certificate from the insurance agent. He said there had been a delay, but once the certificate was received, a pre -construction meeting could be held. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 26. MOTION NO. 2004-224 Motion authorizing the City Manager or his designee to execute an Architectural/Engineering Services Contract with Pierce, Goodwin, Alexander and Linville (PGAL), Inc., of Dallas, Texas in an amount not to exceed $1,375,025 for multiple Airport Improvement Projects including Runway 13/31 Rehabilitation, Overlay, Blast Pads, Shoulders and Edge Lighting; Airfield Drainage Improvements Phase 3; Runway 13 Localizer Relocation; and the Corpus Christi International Airport Master Plan Update. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, and Scott, voting "Aye"; Kinnison was absent; Noyola abstained. Mayor Neal opened discussion on Items 27 and 28 regarding the issuance of Certificates of Minutes - Regular Council Meeting June 8, 2004 - Page 13 Obligation for the landfill project. City Manager Noe explained that Item 27 would authorize a sale of up to $7.5 million in Certificates of Obligation (Cos) to continue with the landfill program, predominantly for construction at J.C. Elliott landfill and the opening of Cefe Valenzuela landfill. He said Item 28 would authorize the issuance of $30 million of general improvement refunding bonds to accomplish savings in interest expense. He asked Mr. Jeff Leuschel, bond counsel, to provide further information. Mr. Leuschel added that Item 27 was a requirement of state law that the city provide a Notice of Intent to issue the Certificates of Obligation sale schedule three weeks from today. He said the ordinance was similarly structured to others the Council had approved in the past. As an aside, Mayor Neal thanked Mr. Leuschel for his assistance with a legal issue involving the Texas Military Planning Commission. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 27. RESOLUTION NO. 025788 Resolution by the City Council of the City of Corpus Christi, Texas, directing publication of notice of intention to issue Combination Tax and Revenue Certificates of Obligation, Series 2004; and resolving other matters relating to the subject. The foregoing resolution was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 28. ORDINANCE NO. 025789 Ordinance providing for the issuance of the General Improvement Refunding Bonds, Series 2004, of the City of Corpus Christi, Texas in an amount not to exceed thirty million dollars ($30,000,000); establishing parameters regarding the sale of the bonds ; approving the execution of a bond purchase contract and an escrow agreement; and all other matters related thereto; and providing that this ordinance shall be in force and effect from and after the date of its passage. An emergency was declared, and the foregoing ordinance 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 31, an update of the five-year general fund financial forecast and overview of the FY 2004-2005 general fund proposed budget. City Manager Noe prefaced the presentation by announcing that the proposed garage sale permit fee was being withdrawn by staff due to strong opposition. He emphasized that staffs intent in recommending the fee was not to generate revenues; rather, their intent was to better regulate this activity in neighborhoods. Assistant City Manager Mark McDaniel first provided an update of the five-year forecast. He reviewed the financial forecast assumptions for revenues as follows: property tax revenue: 6% Minutes - Regular Council Meeting June 8, 2004 - Page 14 in FY and 3% thereafter; industrial district payments: 3.5% percent in FY 04-05 and 3% thereafter; and sales tax revenues: 3.5% in FY 04-05 and 3% thereafter. He also briefly mentioned a number of other revenue sources as follows: new pipeline license agreements; solid waste revenues - rate increase for new current year debt, and then 0.25% thereafter; and most other revenue growth - 2%. He noted that any future fee adjustments were not included. Mr. McDaniel then reviewed the financial forecast assumptions for expenditures. Regarding salary adjustments, he said the plan now included a modified Year 3 of the compensation plan implementation in FY 2004-05, reducing the programmed increase from 5% to 3%. He said the TMRS increase was included for a half year in FY 04-05, and then for a full year thereafter. The projected sworn personnel salary adjustments for fire and police were programmed in at approximately 3% per year. In addition, an increase in salary savings was programmed into the budget, from 4% to 5%. He reported that annual police and fire academies were also included in the budget, at a cost of $1 million per year for fire and between $300,000 to $400,000 for police. Finally, he said the budget did not include funding for any new positions. Regarding health insurance premium expenditures, Mr. McDaniel stated that the budget included 19%-15%-l4% increases in FY 2004-05, and then a 10% increase per year thereafter. Mr. McDaniel reviewed a number of additional expenses programmed in the budget. With regard to regular capital items, he said the budget included funding for the following items: patrol car replacements each year; three fire engines in Year One, and one fire engine per year thereafter; and one ambulance replacement per year. He stated that additional items now accounted for in the budget were the detention center costs and the Juvenile Court costs. He noted, however, that there were a number of items remaining that were unaccounted for in the budget as follows: O&M costs related to Bond 2004 projects; landfill expansion/development options; and the impact of Proposition 13. Mr. McDaniel discussed the updated chart depicting the general fund five-year financial forecast. He noted that in FY 2004-05, the budget was balanced, but he said the estimated "adjustment to balance current revenues to current expenditures" amount fluctuated from approximately $4 million to over $5 million between FY 2005-06 and FY 2007-08. He said the fluctuations could be attributed primarily to the timing of lease purchases agreements. Mr. Garrett asked if one police academy per year was sufficient to keep up with attrition. City Manager Noe and Assistant City Manager McDaniel replied affirmatively. Mr. Noe added that staff and the Corpus Christi Police Officers Association were also discussing the implementation of a "direct hire" program to enable the city to fill vacancies more quickly on a short-term basis. Mr. Garrett emphasized that it was important to keep up with the demand for officers in the short run because it could become expensive in the outer years. Mr. McDaniel proceeded with the overview of the FY 2004-05 general fund proposed budget, beginning with general fund revenues. With regard to property tax revenues, he said that assuming 6% growth, one cent in property taxes was projected to yield $912,400 in revenues. He said one additional percent growth over 6% was projected to generate $554,500. He noted that the current rate cap was $0.6800 cents, and the voters had authorized an additional $0.0194 cents outside of the cap. Thus, he said there were $0.0552 cents left under the cap. Minutes - Regular Council Meeting June 8, 2004 - Page 15 Mr. McDaniel reviewed a graph depicting industrial district values between 1997 and 2004. He remarked that there had been a certain amount of volatility in this revenue source over the years, but staff felt they could control the volatility through the new industrial district agreement. He also briefly reviewed another graph illustrating the payments in lieu of taxes for the industrial district. Mr. McDaniel referred to a graph depicting the historical collections of sales tax between 1997 and 2005 (projected). He pointed out that the events of 9/11 inhibited growth for a number of years. He also clarified that the graph did not include an $800,000 audit adjustment from the State Comptroller's office because the rebate was probably for a previous funding year, so it would skew the numbers. Mr. McDaniel discussed another graph depicting the percent change in collections from year to year between 1992 and 2005 (projected). He reported that the city's sales tax revenues were doing well up until 2001, with the exception of 2004, which is estimated to yield 4.2%. He said if that projection held, then the city would end up $800,000 ahead. He said staffs projection for 2005 was 3.5%, a conservative estimate but still appropriate due to the volatility of this revenue source. Regarding franchise fees, Mr. McDaniel reported that staff was projecting $538,090 in revenues from the new pipeline license agreements in 2005, 75 percent of which would be obtained from Gulfterra. With regard to solid waste services revenues, Mr. McDaniel pointed out that the projected solid waste fee adjustments to residential garbage collection and refuse disposal in 2005 totaled to $978,545. He remarked that the adjustments were attributable to the additional debt needed for landfill projects. Mr. McDaniel reviewed a number of other proposed fee adjustments. First, he said $874,447 in public safety fee adjustments were being recommended for the following services: 911 wireline; alarm permits; (new) taxi driver permits; sexually oriented business (SOB) licenses; (new) haz mat clean up; and fire protection permits. Second, he said $109,832 in park and recreation use fee adjustments were being recommended for the following programs: latchkey; e -registration; and facility rentals. Third, $123,590 in health services fee adjustments were being recommended for swimming pool and restaurant inspections/permits and animal bite testing. Fourth, $171,492 in library fee adjustments were being recommended for overdue book charges and non-resident user fees. Fifth, he said $165,000 for beach permits was being recommended as well. Mr. Garrett spoke against the new proposed fee for taxi driver permits. He also asked for information on the number of false alarms per year, and whether the city was collecting a fine for false alarms. Mr. McDaniel replied that he would provide this information later. Finally, Mr. McDaniel referred to a chart depicting the city's revenues by source. He noted that ad valorem and sales taxes comprised approximately 51 percent of all revenues. He said the remaining revenues were user -oriented. Mr. McDaniel then provided an overview of general fund expenditures. First, he reviewed a number of budget reductions. Through the use of target budgeting, he said an additional $513,00 in savings from the baseline was achieved. He said only $799,000 out of $6.1 million in restoration Minutes - Regular Council Meeting June 8, 2004 - Page 16 requests were funded. In addition, he reported that salary savings were increased to 5% of total base salaries, which amounted to approximately $500,000 more in programmed savings. Mr. McDaniel reviewed a number of major expenditure increases. First, he said salary adjustments comprised a major portion of the increases, totaling $1,534,000 for civilians and $1,802,446 for sworn personnel. Benefit adjustments for health insurance and retirement accounted for $1,199,630 and $669,465, respectively. Mr. Kinnison pointed out that the increases in salary adjustments for civilians and sworn personnel alone were not covered by the projected revenue increases in the five-year budget. City Manager Noe agreed, saying that the increased cost of personnel was driving the city's funding. Mr. McDaniel reported that new programs/enhancements comprised $798,725 of the expenditure increases as follows: new detention center - $421,193; Juvenile Court restoration - $266,068; additional legislative costs - $35,000; ADA compliance program - $18,326; beach maintenance - $25,897; and three new fire apparatus - $32,241. In summary, Mr. McDaniel stated that total increases in the general fund amounted to $7.96 million, over $5 million of which was comprised of salaries. He said the major increases described previously totaled $7.58 million, comprised of the following items: salary adjustments - $3,336,446; benefit adjustments - $1,869,095; new/enhanced/restored programs - $798,725; increase in ambulance fund subsidy - $946,328; increase in senior community services transfer - $173,791; and new landfill debt service - $458,259. He said the approximately $300,000 difference was comprised of small increases for electricity, supplies, and the like. He remarked that this indicated the budget was relatively tight. Mr. McDaniel reviewed a graph depicting the growth in the unreserved fund balance between 1995 and 2004 (projected). He said staff believed the city would hit the 10 percent mark of its goal for the general fund balance this fiscal year. Mr. McDaniel discussed the balance of the schedule for the budget process. He noted that staff was requesting to change the public hearing date to June 29, and then first and second readings to July 13 and July 20 respectively. He said this would give staff the opportunity to complete the necessary accounting between July 20 and August 1 to have the budget ready. The Council then asked a number of questions. Mr. Scott spoke in support of Mr. Kinnison's previous suggestion to provide some tax relief to the citizens if property taxes do come in higher than projections. Mr. Noyola spoke in support of staff's decision to withdraw the proposed garage sale permit. Mr. Kinnison asked staff to explain the increase in the ambulance fund. Mr. McDaniel explained that the bulk of the increase was attributable to drag -up pay and rising expenses. City Manager Noe replied that the city was planning to have an outside review of ambulance services to obtain recommendations on how to generate more revenues. Mr. Kinnison also asked about the proposed detention facility, asking if the budgeted amount was consistent with the city's last offer to the county. City Manager Noe replied that $1.1 million was budgeted. * * * * * * * * * * * * * Minutes - Regular Council Meeting June 8, 2004 - Page 17 Mayor Neal called for petitions from the audience. Mr. Lauro Gutierrez, 4833 Alice Street, presented a neighborhood petition in opposition to Truks Roadhouse, citing problems with excessive noise. Mr. Bill Kopecky, 3609 Topeka, presented a petition in favor of Proposition 13. Mr. Sirfrederickvonusa King spoke regarding the passing of former President Ronald Reagan and an alleged document from the Labor Department. Mr. Abel Alonzo spoke against the Council's appointments to the Corpus Christi Regional Transportation Authority Board of Directors. Mr. Phil Rosenstein spoke in favor of staff's decision to withdraw the proposed garage sale permit, and he asked for improved communication between staff and the Council. Mr. Jack Gordy, 4118 Bray, spoke regarding Proposition 13. Mr. Rolando Garza, 2854 Alvin Drive, questioned a number of expenditures and reductions in the proposed FY 2004-05 budget. Mr. Carlos Torres, President of the Corpus Christi Firefighters Association at 6014 Ayers, provided a final report on the MDA "Fill the Boot" campaign. Mayor Neal called for a brief recess to present proclamations. * * * * * * * * * * * * * Mayor Neal announced the executive sessions, which were listed on the agenda as follows: 29. Executive session under Texas Government Code Section 551.071 regarding the City's proposed Detention and Magistration Center with possible discussion and action related thereto in open session. 30. Executive session under Texas Government Code Section 551.071 regarding Hector Villarreal, Corpus Christi Association of City Employees, and Stan Wilt v. City of Corpus Christi and Loyd Neal; Cause No. 02-0868-E; 214th Judicial District court, Nueces County, Texas, with possible discussion and action related thereto in open session. The Council went into executive session. * * * * * * * * * * * * * The Council returned from executive session, and Mayor Pro Tem Kinnison called for the City Manager's report. City Manager Noe reported that the Charter Revision Commission was holding a public hearing on their proposed amendments this evening at 6:00 p.m. in the Council Chambers. Tomorrow evening at 6:00 p.m., Mr. Noe reported that a progress report would be provided on the latest NIP area. The Planning Commission would hold a public hearing on the Padre Island overlay zoning district at 6:00 p.m. on June 10 at the Island Presbyterian Church. He announced that a Cash for Trash event would take place this Saturday from 9:00 a.m. to 3:00 p.m. at the Elliott landfill. Finally, he said the following items were scheduled for the June 15 agenda: consideration of the petition on Proposition 13; and continuation of the budget discussion. Mayor Pro Tem Kinnison called for Council concerns and reports. Ms. Cooper announced that the next town hall meeting would be held on July 12 at Montclair Elementary. She also encouraged everyone to attend the Municipal Band concerts held at 8:30 p.m. on Sunday nights. Mr. Kelly asked staff to provide the Council with a copy of the open container ordinance. NIinutcs - Regular Council Meeting June 8, 2004 - Page 18 1 -le said retailers in the Leopard Street area had suggested that the city revise the ordinance in response to problems with homeless individuals in the area. There being no further business to come before the Council, Mayor Pro Tem Kinnison adjourned the Council meeting at 1:22 p.m. on June 8, 2004. * * * * * * * * * * * * *