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HomeMy WebLinkAboutMinutes City Council - 06/15/2004I 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 June 15, 2004, which were approved by the City Council on June 22, 2004. WITNESSETH MY HAND AND SEAL, on this the 22nd day of June 2004. Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting June 15, 2004 - 10:07 a.m. PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Rex Kinnison Council Members: Brent Chesney Javier D. Colmenero (Arrived at 10:10 a.m.) 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 Pastor Gene Stewart of Reach Out for Christ Ministries and the Pledge of Allegiance to the United States flag was led by Council Member Cooper. 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 June 8, 2004. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * * * * Mayor Neal recognized Dr. Carlos Garcia, the newly appointed President of Del Mar College. Dr. Garcia briefly described Del Mar College's goal to promote education in the community. He then recognized Mr. Gabriel Rivas, chairman of the Del Mar College Board of Regents, and Ms. Pat Townshend, director of the Del Mar Foundation. Ms. Townshend briefed the Council on the foundation's fundraising campaigns. Ms. Townshend also introduced Ms. Melissa Rollins, a former student who shared her experience at Del Mar College. Mayor Neal thanked Dr. Garcia and said the city looked forward to working with him. * * * * * * * * * * * * * Mayor Neal referred to Item 3 and the following board appointments were made: Sister City Committee Westi Horn (Appointed) Rebecca Hawn (Appointed) Flicka Rahn (Appointed) Mary Ann Lopez (Appointed) * * * * * * * * * * * * * Minutes - Regular Council Meeting June 15, 2004 - Page 2 Mayor Neal referred to the presentations on the day's agenda. The first presentation was the final report of the Charter Revision Commission. Ms. Irma Caballero, co-chairman of the commission, recognized the commissioners present in the audience, and thanked them for their hard work. She said the commission had many constructive debates about the propositions before finalizing their list of recommended city charter amendments. She said the commission's main goal was to provide city government with the tools needed for effective governance to enhance the quality of life in Corpus Christi. She and Mr. John Bell, co-chairman of the commission, briefly reviewed the list of ten recommended city charter amendments as follows: Proposition 1: Proposition 2: Proposition 3: Proposition 4: Proposition 5: Proposition 6: Proposition 7: Proposition 8: Proposition 9: Proposition 10; Updating the provisions concerning initiative and referendum in order to comply with new laws and election procedures. Updating the provisions concerning city council elections, council meetings, and the mayor's veto power and recall elections in order to conform the procedures to new State laws and city council meeting dates. Increasing the compensation of city council members to $12,000 per year and of the mayor to $18,000 per year, to be effective after the next city council elections Updating the provisions concerning the approval of budgets and the expenditure of city funds in order to comply with new laws, court decisions, and accounting practices. Allowing city employees, other than managerial employees and employees in the city secretary's office, to participate in political activities; provided that, no political activities may be conducted while in uniform, on duty, or using city resources, and no coercion or retaliation is allowed. Simplifying the existing restrictions concerning city officials and employees running for other public office in order to make the current provisions easier to follow, without making any substantive changes in the restrictions. Changing the property tax cap to conform to the tax cap set by the Texas Constitution. Allowing certain leases for the construction of boat slips and docking facilities to be for terms not more than 15 years without necessity of an election, simplifying the procedures concerning the short-term leases less than 5 years, transfers of leases, regulation of leases and approval of oil and gas leases, and updating other provisions to current State law and court decisions. Updating the provisions concerning general powers of the city in order to conform to new State laws and procedures. Changing the date of the regular city council election from the first Saturday in April to the November uniform election date in order to conduct city council elections at the same time as elections for federal and state elected officials. Mr. Bell stated that Propositions 4, 6, and 9 were housekeeping items which were fairly non- controversial in nature. Regarding Proposition 1, Mr. Bell stated that the proposed changes to the initiative and referendum provisions were designed to provide more direct communications between the petitioners and city officials, allow set timelines for the submission of documents, and the supplementation of petitions that are determined to be insufficient. He said by making the procedures more clear and detailed, the Commission hoped to keep any future controversy to a Minutes - Regular Council Meeting June 15, 2004 - Page 3 minimum. Regarding Proposition 2, Mr. Bell said the most significant change was to the timing of the city council run-off elections. Historically, the city's run-off elections have been held two weeks after the general election. He said this would no longer be possible, however, because of changes in the Texas election code, which now required that a city could not canvass an election until a minimum of eight days after the regular election. Thus, he said the earliest the city could hold a run- off election was four to five weeks after the regular election. Regarding Proposition 3, Ms. Caballero explained that the commission believed that the mayor and council members should receive a basic level of compensation that would allow a broader range of Corpus Christi citizens to serve. By keeping the salaries artificially low, only those persons who are wealthy or have independent means of support would be able to serve. Regarding Proposition 5, Mr. Bell said this proposition was heavily debated by the commission, and it ultimately received a split vote. He said a majority of the commission felt it was important to allow city employees to participate in city elections, with the exception of managerial employees and employees of the city secretary's office, because this department oversaw city elections. Ms. Caballero discussed Proposition 7 regarding the property tax cap. She said the Texas Constitution established a property tax cap of 82.50 per 5100.00 of assessed valuation for all Texas cities comparable to Corpus Christi. Although Corpus Christi and other Texas cities do not levy property taxes anywhere near that legal maximum, she said the legal limit was a significant factor to bond rating agencies in determining the creditworthiness of cities in the issuance of bonds and in maintaining operations and maintenance to support essential city services. She said the city incurred additional expenses each year based upon higher interest costs on issued bonds because of the 68 -cent property tax cap. Thus, she said the commission believed the 68 -cent property tax cap should be repealed. Mr. Bell discussed Proposition 8 regarding long-term leases along the Corpus Christi bayfront, a somewhat controversial issue. He said the charter requires that leases of submerged lands on the bayfront for terms longer than five years must be approved by a voter referendum. However, he said the replacement of boat slips and docking facilities are routine capital improvements on the bayfront, but in order to amortize the costs of better facilities, more than five years is required. Thus, he said the amendment will maintain the requirement that leases longer than five years of the submerged lands along the bayfront must be approved by voter referendum, but it provides an exception allowing leases of boat slips and docking facilities for up to 15 years. Finally, Ms. Caballero briefly discussed Proposition 10, which would change the date of the regular city council election from the first Saturday in April to the November uniform election date. She said the main reason for supporting this change was higher voter turnout. The main reasons against the change were the loss of attention paid to city candidates and the higher costs of conducting campaigns. Ms. Caballero said this proposition was the most intensely debated of all the propositions the commission discussed. After the public meeting held on June 8, 2004, the proposition was included in their final report by an 8-7 vote. Minutes - Regular Council Meeting June 15, 2004 - Page 4 Mr. Bell stated that the commission began meeting in October 2003 and undertook a comprehensive review of the City Charter beginning with Article I. He thanked the commission for their efforts, and he thanked the Council for the opportunity to serve. Mayor Neal thanked Ms. Caballero and Mr. Bell, and the rest of the commission for their efforts. Mayor Neal asked City Secretary Chapa to explain the next steps in the process. City Secretary Chapa answered that the Council would need to decide what issues they wanted to place on the November ballot by the end of July, or no later than the first meeting in August. He also recommended that the Council hold another public meeting on the recommended charter amendments, perhaps during the first meeting in July. The Council concurred with Mr. Chapa's suggestion to hold the public hearing during the first meeting in July. Mayor Neal asked that the item be placed on the regular agenda. Mr. Noyola asked if the item would be considered at a specific time. Mayor Neal replied that they would look into it. The next presentation was on a proposed west side clinic by the Nueces County Hospital District. County Commissioner Betty Jean Longoria reported on the proposed Westside Neighborhood Care Center, scheduled for completion by April 2005. She said the clinic would replace a smaller temporary clinic that was now inadequate. She said she had worked closely with District 3 Council Member Noyola and City Manager Skip Noe, and she thanked them for their support. She thanked Assistant City Manager Margie Rose and other city staff for their assistance in acquiring the city property to be used as the project site, pending related zoning and platting approvals. Commissioner Longoria also reported that the clinic would provide dental care and would dispense medication, two badly needed services. Commissioner Longoria noted that the Nueces County Hospital District was investing $2.9 million to develop the project. She introduced Mr. Johnny Hipp, administrator and CEO of the Nueces County Hospital District, who reported that the Westside clinic would be the fifth clinic in the district's system. He said the proposed clinic would be located in the center of a medically under -served area. He said the district's duties were to care for the indigent in the county, as well as provide public health services, EMS, mental health and retardation services, and correctional health services. Mr. Hipp introduced a architect from Bennett, Martin, Solka and Torno, Inc. Architects, who reported on the plans for the clinic. She said the building was oriented toward the intersection of Greenwood and West Point Road, with access to the facilities from either street. She said the design team has coordinated with the RTA to move the bus stop closer to the building. She then briefly reviewed the floor plan for the building. In response to Mr. Hipp's question, Mr. Hipp replied that the clinic would actually be operated by the Christus Spohn System. He said the clinic would serve indigent as well as paying customers. Mr. Colmenero spoke in support of the project, saying that it was badly needed. Mr. Noyola asked if there were any plans to repair Greenwood Drive and West Point Road, which were in poor condition. City Manager Noe replied that he was not aware of any plans to repair the roads beyond what was in the proposed bond issue. Mr. Noyola thanked Mr. Hipp and Commissioner Longoria for keeping him informed on the project. He said there was a great need for the clinic in the west side area. Minutes - Regular Council Meeting June 15, 2004 - Page 5 Mr. Scott asked Mr. Hipp to explain the hospital district's relationship with the Christus Spohn System. Mr. Hipp replied that the district provided indigent care under one of three operating contracts they had with Christus Spohn. He said the district was amending the lease to add the new site. He noted that the district had spent approximately $23 million for indigent care last year. Under the lease agreement, Christus Spohn paid the hospital district $5.1 million a year to lease the Memorial facility and the clinics from them. He emphasized that Christus Spohn only leased the facility from the hospital district, but did not manage or operate the clinics on their behalf. He stated that the clinics were Christus Spohn's enterprise. Council Member Cooper asked about the timeline for the project. Mr. Hipp replied that the hospital district was in the process of acquiring approximately 2.7 acres of land at the intersection of Greenwood and West Point Road. He said the sales contract stipulates that the hospital district cannot purchase the property until it is rezoned and platted. He said the Planning Commission would consider their request on June 2. He said the design plans would go to the district's board in July for approval to issue bids. The bids would be received in September, and the project would hopefully begin construction soon after. He said the architect estimated that construction would take approximately eight to nine months. Ms. Cooper spoke in support of the project, also stating that there were many citizens desperately in need of the clinic's services. * * * * * * * * * * * * * Mayor Neal referred to Item 6, a special budget presentation providing an overview of the proposed FY2004-05 budget for enterprise zones. Assistant City Manager Mark McDaniel displayed a pie chart illustrating the expenditures by each fund. He noted that utilities comprised the largest share of expenditures by far. Of the utilities, he said water was the largest fund, comprising 47 percent of the total. He said the seven enterprises funds combined totaled $164.4 million, larger than the general fund. Mr. McDaniel first discussed the combined utility system, composed of water, gas, wastewater, storm water, and environmental services departments. Regarding revenues, he pointed out that a substantial portion of revenues were coming from the sale of water and wastewater. He also discussed the proposed rate adjustment of 5 percent, programmed next year for all three utilities, to support the capital program the Council approved earlier primarily for drainage. Mr. McDaniel remarked that the city's water sales over the last few years have been poor because of unusually wet weather. He reiterated that water comprises the largest portion of the combined utility system budget and is the largest enterprise fund, so this has had a significant effect on the budget. Staff estimated that water sales for 2004 will rebound slightly because the rainfall this year was not as heavy as last year. Mr. McDaniel then discussed expenditures for the combined utility system. He said the pie chart for expenditures was different from other operating budgets because materials and supplies (28 percent) and debt service (23 percent) were the largest portions of the budget. He said the materials and supplies category was composed of purchased water and purchased gas that were then resold to customers. By contrast, he said personnel comprised only 18 percent of expenditures. Mr. McDaniel pointed out that there was actually a reduction in salaries and wages for the combined utility system expenditures of $162,746. He said this was a one percent reduction net of $2 million Minutes - Regular Council Meeting June 15, 2004 - Page 6 in programmed salary savings, but included increases as follows: salary adjustments/skill based pay; and health insurance and TMRS adjustments. He also said that $1 million was programmed in the budget to continue the re-engineering effort. Finally, with regard to capital improvement financing, he said the fund was down by $73,841 in its budget, but this amount was exclusive of pending new debt to be issued in July. Mr. McDaniel discussed two other major expenditures, purchased water and purchased gas. He said expenditures for purchased water had increased by 6.8 percent, or $427,140, attributable to increased interruptible water purchases in 2003 and 2004. With regard to purchased gas, he said staff was budgeting for only a 1.5 percent increase because gas prices have been high the past two years. Mr. Scott asked if staff had considered a long-term contract for gas purchases. Acting Budget Director Debbie Marroquin replied that staff had considered this, but they opted not to do it this year because the volatility of the market made it a risky endeavor. She said staff could always consider making long-term purchases, however, if needed. City Manager Noe added an important consideration was to see how the future development of liquified natural gas receiving terminals (LNG) in the city might impact the local market, more than likely in a beneficial way. Mr. McDaniel then discussed the marina fund. He said revenues for the marina fund were primarily comprised of slip rentals (75 percent). Expenditures were mostly comprised of salaries and wages (56 percent) and other operating costs (30 percent). He also discussed an important fiscal issue currently being considered, namely a contemplated rate adjustment to fund marina improvements. He said the rate adjustments could be comprised of slip rental increases as high as 21 percent, which would still be competitive with the industry. The possible improvements would be to piers and pilings, bathroom facilities, and an additional 250 boat slips. Mr. McDaniel stated that the plans for possible improvements were pending the completion of the bayfront plan. City Manager Noe added that it was important that the marina improvements coordinate with the bayfront plan since this has been a criticism in the past. Mr. McDaniel next covered the golf centers fund. With regard to revenues, he said green fees make up the largest portion of the budget (54 percent), followed by cart rentals (28 percent). He said golf center expenditures were comprised primarily of operation costs for the Gabe Lozano course (50 percent) and for the Oso course (38 percent). He reported that staffs revenue projections included the return of a monthly card program that would allow discounted play for residents during a specific time period for $130. In addition, Mr. McDaniel stated that the golf fund was facing a critical fiscal issue due to a significant decline in activity and subsequent revenues. He said the decline has led to major cost reductions and could potentially lead to contracting out of operations. Mr. Garrett asked why staff thought play had declined so dramatically. Mr. Chris Semtner, support services superintendent for the park and recreation department, replied that play had declined mainly because private country clubs are now open to the public and offering competitive prices. Mr. Colmenero asked about any marketing plans for municipal golf courses. Acting Director of Park and Recreation Margie Rose replied that staff was formulating a marketing plan that focused primarily on the tourist market. She said staff would be working with the Convention and Visitors Bureau to provide information to hotels. She also said the plan would look at publicizing golf outings by non -profits at city golf courses. Mr. Colmenero suggested that staff look into purchasing Minutes - Regular Council Meeting June 15, 2004 - Page 7 PSA time through the utility accounts. He also asked if there was a system in place to acquire data on golf course patrons, which could be used to more effectively focus the city's marketing efforts. Ms. Rose replied affirmatively, saying that this was part of the marketing plan. Mr. Noyola spoke in support of the return of the monthly card program because it would make the city's prices more competitive. He also stated that the new improvements to the courses should help increase activity, in combination with the monthly card program. Mr. McDaniel covered the airport fund budget, beginning with revenues. He said the airport fund obtains its revenues from a variety of sources, the largest sources being parking lot collections (20 percent) and oil and gas leases (13 percent). With regard to expenditures, he said building and custodial maintenance was the largest expenditure at 28 percent. In addition, he reported that airport activity was rebounding from a downward trend in cnplanements since hitting a low in calendar year 2003. Mr. Garrett asked when the city was going to demolish the old airport tower. Director of Aviation Dave Hamrick answered that a portion of the tower was being leased to the Transportation Security Administration. He said the demolition process would be completed in two phases. The first phase was the asbestos removal, and staff had already received estimates on this project. He said the demolition should be completed by the end of the year. Finally, Mr. McDaniel discussed the ambulance fund, beginning with revenues. He said emergency call revenues composed 50 percent of all revenues, including the proposed rate increases totaling approximately $237,000. He noted that the general fund was still subsidizing the fund by 49 percent. The remaining one percent was flat revenue generated from calls outside the city limits. Regarding expenditures, he stated that the costs for the eighth ambulance company were compounding, along with salary related adjustments (for wages, health insurance and uniform allowance), and costs for the new ambulance replacement program. In conclusion, Mr. McDaniel reviewed the balance of the budget schedule. On June 22, staff would provided an overview of special revenue and internal service funds. On June 29, the public hearing on the budget was scheduled. Finally, the first and second readings of the adoption ordinance would be held on July 13 and July 20. * * * * * * * * * * * * * Mayor Neal called for consideration of the consent agenda (Items 7-8). There were no comments from the audience or the Council. A motion was made and passed to approve Items 7 through 8, constituting the consent agenda. City Secretary Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting June 15, 2004 - Page 8 7. ORDINANCE NO. 025790 Ordinance appropriating $383,952 from the State Homeland Security Grant in Fire Grants Fund No. 1062 for purchase of 114 handheld radios. 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.a. RESOLUTION NO. 025791 Resolution authorizing the City Manager or the City Manager's designee to execute a Gift Agreement with the Friends of the Corpus Christi Public Libraries which provides the City with a gift of 5115,558.54 for the expansion and remodeling of the Mary and Jeff Bell Children's Library at the Central Library. The foregoing resolution was passed and approved with the following vote: Neal, Chesney, Colmcnero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 8.b. ORDINANCE NO. 025792 Ordinance appropriating S115,558.54 from the Friends of the Corpus Christi Public Libraries Capital Improvement Program Fund No. 3210 for improvements to the Mary and Jeff Bell Children's Library at the Central Library; amending FY 2004 Capital Budget adopted by Ordinance No. 025647 by increasing appropriations by $115,558.54. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Neal, Chesney, Colmcnero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". * * * * * * * * * * * * * Mayor Neal deviated from the agenda, and opened discussion on Item 10 regarding the vacant building ordinance. City Manager Noe stated that the item was placed on the agenda because the Council had previously tabled it for consideration at today's meeting. He said staff has met with representatives from the realtors association and other stakeholders, and although some progress has been made, the ordinance was still not ready for the Council's review. Thus, staff was recommending that the item be tabled until no later than July 27. Mr. Scott made a motion in support of staffs recommendation, seconded by Mr. Chesney, and passed. There were no comments from the audience. Mayor Neal called for a brief recess to present proclamations. * * * * * * * * * * * * * The Council returned from recess, and Mayor Neal called for petitions from the audience. Mr. Roy Pell, 5022 Rasputin Court, representing the Water Shore Advisory Committee, spoke in Minutes - Regular Council Meeting June 15, 2004 - Page 9 favor of the proposed boat slip fee adjustments. Mr. Jack Gordy, 4118 Bray, spoke regarding a number of code enforcement issues, including illegal parking and political signage, and an incident involving police officers allegedly entering his home without properly identifying themselves. Mr. Danny Noyola, 4410 Acushnet, thanked Mr. Colmenero for appointing him to the Charter Review Commission, and he suggested that the public hearing for the recommended charter revisions take place in the evening to allow for more public input. He also congratulated the Moody Trojans for winning the 5A state baseball championship. Mr. Roland Garza, 2854 Alvin Drive, spoke regarding his concerns about an overpayment for uniforms in the water department. Ms. Norma Urban, president of the Downtown Management District (DMD), read a resolution on behalf of the DMD Board of Directors supporting the concept of an enhanced public transit system (e.g. trolley) within downtown Corpus Christi. * * * * * * * * * * * * * Mayor Neal referred to Item 9, and he announced an executive session pursuant to Section 5501.07 of the Texas Government Code, to seek legal advice relating to the receipt of a petition to call an election to determine whether to establish an ad valorem property tax freeze on residence homesteads of the disabled and of the elderly and their spouses, with possible discussion and action in open session. The Council went into executive session. The Council returned from executive session, and Mayor Neal made a motion to direct the City Secretary to begin validating signatures on the petition filed on June 8, 2004 regarding the freezing of ad valorem taxes on residence homesteads of the disabled and the elderly and their spouses, seconded by Mr. Scott. Mayor Neal called for public comment. Mr. Jack Gordy, 4118 Bray, and Mr. Bill Kopecky, 3609 Topeka, spoke in favor of establishing the ad valorem property tax freeze. Mayor Neal called for a vote on the preceding motion, and it passed unanimously (Chesney was absent). * * * * * * * * * * * * * Mayor Neal called for the City Manager's report. City Manager Noe reported that staff had received the final report on the results of Neighborhood Improvement Program (NIP) Area No. 4, which was successful. He said the NIP Site No. 5 effort would take place from June 23 through July 19 in the Flour Bluff area. He also announced that the open enrollment period for health insurance for city employees and retirees was now in progress. In addition, he stated that the city would be receiving a visit from Transportation Commissioner Ted Houghton on June 28, and Council Members were invited to visit with him from 10 a.m. to 12 p.m. at an orientation to be held at the Ortiz Center. City Manager Noe announced that the following items were scheduled for next week's council meeting: fourth budget discussion; Bond 2004 discussion; consideration and approval of the Crime Control District 2005 budget; and the annual meetings of the city corporations. Mayor Neal called for Council concerns and reports. Mayor Neal reported that he had received a letter from Mr. Van Huseman, representing Nueces County, with a substantially amended proposed jail contract. He asked the city manager to place the item on next week's agenda for the Council's discussion and consideration. He emphasized that the Council has not yet discussed or Minutes - Regular Council Meeting June 15, 2004 - Page 10 approved the revised jail proposal in any way. Mr. Kelly spoke in support of the efforts of the See City Workcamp, a faith -based program where high school students work with experienced contractors to make improvements to the homes of needy people. Mr. Garrett stated that he received a call from a constituent residing on the 600 block of Ocean Drive regarding problems with excessive noise from a concert held on Thursday night. He asked the city manager to look into the problem. Mr. Noyola asked for a status on a survey he had requested regarding the possible effects of increasing the $3,000 down payment in the city's mortgage assistance program. He also asked about a constituent request to use a service alley for trash collection in the Crestmont area. City Manager Noe replied that it was not possible because the pavement in the alley was not in good condition, and he said he had notified the gentleman in question. Finally, Mr. Noyola congratulated the Moody Trojans for winning the 5a state baseball championship, and he invited everyone to attend their pep rally at Cabaniss Field tonight. Ms. Cooper asked for an update on the Packery Channel project funding. City Manager Noe replied that Sen. Chet Edwards had initiated an appropriation for Packery Channel in the House, and the next step was to try to obtain support in the Senate. He said Senator Hutchison was continuing her efforts to obtain funding for the project. Mr. Colmenero asked for a report on the city's efforts to address problems with transients and prostitutes on Leopard Street. He also reported that he was still receiving complaints about the noise from Truks Roadhouse on McArdle Road. Finally, he asked for a report on the graffiti problem. City Manager Noe said staff was still working on it, and he would find out when it would be ready. There being no further business to come before the Council, Mayor Neal adjourned the Council meeting at 12:40 p.m. on June 15, 2004. * * * * * * * * * * * * *