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HomeMy WebLinkAboutMinutes City Council - 06/14/2005I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Regular Meeting of the Corpus Christi City Council ofJune 14, 2005, which were approved by the City Council on June 21, 2005. WITNESSETH MY HAND AND SEAL, on this the 21st day ofJune, 2005. Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting June 14, 2005 - 10:02 a.m. PRESENT Mayor Henry Garrett Mayor Pro Tem Brent Chesney (Arrived at 10:08 a.m.) Council Members: Melody Cooper (Arrived at 10:05 a.m.) Jerry Garcia Rex Kinnison Bill Kelly John E. Marez Jesse Noyola Mark Scott City Staff City Manager George K. Noe City Attorney Mary Kay Fischer City Secretary Armando Chapa Mayor Garrett called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Council Member Scott and the Pledge of Allegiance to the United States flag was led by Council Member Noyola. Mayor Garrett called for approval of the minutes of the regular Council meetings of May 24, 2005 and May 31, 2005. A motion was made and passed to approve the minutes as presented. ************* Mayor Garrett referred to Item 2 and the following board appointments were made: Civil Service Board/Commission John Silvas (Reappointed) Food Service Advisory Committee John Denson (Reappointed) Bob Ard (Reappointed) Dr. Nina Sisley (Appointed) Cheri Sperling (Appointed) Port of Corpus Christi Authority Bernard A. Paulson (Reappointed) Human Relations Commission Jennifer Starr (Reappointed) Dr. Clifton Baldwin (Reappointed) Albert Santoya (Reappointed) Thomas V Lopez (Appointed) Crystal Lyons (Appointed - Chairman) Sam Watson (Appointed) Tony (JR) Bonilla (Appointed) * * * * * * * * * * * * * Mayor Garrett opened discussion on Items 3 and 4 regarding the issuance of refunding bonds and the issuance of Certificates of Obligation for the Cefe Valenzuela landfill and marina improvement projects. He said the Certificates of Obligation issuance comprised the first increment of Bond 2004. He also mentioned that Moody's Rating Service had recently upgraded the city's bond Minutes - Regular Council Meeting June 14, 2005 - Page 2 rating from A2 to Al. Regarding Item 3, the issuance of refunding bonds, Director of Financial Services Cindy O'Brien stated that after pricing the bonds on the market yesterday, the exact amount of the bonds had changed from $94,670,000 to $86,485,000. The bond sale would generate $93,297,000 in actual proceeds to be spent on the improvement projects and the refunding. Mr. Mark Seale with M.E. Allison & Company, the city's financial advisor, added that within the $86,485,000 sale, $29,850,000 of the city's outstanding general obligation debt. He said the city saw a 3.44 percent savings of refunded bonds, totaling $1,026,811 in savings. Mr. Seale reported the sale was the first installment of the voter -authorized $95 million in debt from Bond 2004. He said his firm had deposited $60 million in the project fund for the marina improvement and landfill projects. He reiterated that Moody's had upgraded the city's bond rating, while the other rating agencies reaffirmed the city's previous good ratings. The bonds were insured by FSA, and were sold at a AAA rating, which generated an additional savings for the city. He said the bonds were sold at a 4.22 percent rate for 20 -year bonds, which was an extremely attractive rate. Regarding Item 4, the sale of the Combination Tax and Revenue Certificates of Obligation (COs), he said the landfill COs were 30 -year bonds in the amount of $14,520,000 at 4.65 percent, and the marina Cos were 20 -year obligations sold for $4.5 million at 4.38 percent. Overall, Mr. Seale reported the market was seeing 40 -year historically lows in interest rates, so it was the perfect time to issue and refund debt. In response to Mr. Scott's question, Mr. Seale replied that the rule of thumb for refunding bonds was to see at least a 3 percent savings before it was considered cost-effective. He said the present savings in this transaction was 3.44 percent. Mayor Garrett asked for public comment. Mr. Bill Kopecky, 3609 Topeka, stated he was in favor of the bond refunding transaction, but he questioned the use of COs to fund the improvements because they were not voter -approved. Mr. Noe replied debt issued on a revenue basis carried a higher interest rate than tax supported debt, so part of the value of using Cos was the city would see a lower interest rate on these bonds than if the city used a revenues pledge. City Secretary Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting June 14, 2005 - Page 3 3. ORDINANCE NO. 026292 Ordinance providing for the issuance of $94,670,000 $86,485,000 of the General Improvement and Refunding Bonds, Series 2005, of the City of Corpus Christi, Texas, bearing interest at the rates hereinafter set forth, and providing for the levy, assessment and collection of a tax sufficient to pay the interest on said bonds and to create a sinking fund for the payment of the principal thereof; repealing all ordinances in conflict herewith; approving the execution of a bond purchase contract and an escrow agreement; 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: Garrett, Chesney, Cooper, Garcia, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Kelly was absent. 4.a. ORDINANCE NO. 026293 Ordinance by the City Council of the City of Corpus Christi, Texas, providing for the issuance of $15,000,000 City of Corpus Christi, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2005 (Landfill Project), and ordaining other matters relating to the subject. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Kelly was absent. 4.b. ORDINANCE NO. 026294 Ordinance by the City Council of the City of Corpus Christi, Texas, providing for the issuance of $4,500,000 City of Corpus Christi, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2005 (Marina Development Project), and ordaining other matters relating to the subject. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Kelly was absent. * * * * * * * * * * * * * Mayor Garrett called for consideration of the consent agenda (Items 5-17). City Secretary Chapa announced that Mr. Noyola would be abstaining from the vote and discussion on Item 13. Mr. Abel Alonzo, 1701 Thames, asked that Item 15, a contract with Collier, Johnson & Woods to conduct a city audit, be pulled for individual consideration. He expressed concern about the process used to award the contract to Collier, Johnson & Woods, saying that the city should have made more of an effort to elicit other bidders. He also commented that only two Council members attended the last Council Audit Committee meeting. Minutes - Regular Council Meeting June 14, 2005 - Page 4 Council members also requested that Item 15 be pulled for individual consideration. A motion was made and passed to approve Items 5 through 17, constituting the consent agenda, except for Item 15, which was pulled for individual consideration. City Secretary Chapa polled the Council for their votes as follows: 5. MOTION NO. 2005-181 Motion approving the purchase of one 500 KW emergency generator set from Loftin Equipment Co., of Stafford, Texas for a total of $80,871.15. The award is based on the Cooperative Purchasing Agreement with the Houston Galveston Area Council of Governments (HGAC). The generator will be installed at the Health Department. Funds are budgeted in the No. 1066 Health Grant Fund - PHP Preparedness FY 2004-2005 budget. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". 6.a. RESOLUTION NO. 026295 Resolution authorizing the City Manager or his designee to accept grant funding in the amount of $25,000 from the Texas Department of Transportation for an Impaired Driving Mobilization Selective Traffic Enforcement Project (STEP) grant for DWI enforcement overtime pay within the Police Department and to execute all related documents. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". 6.b. ORDINANCE NO. 026296 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: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". 7. ORDINANCE NO. 026297 Ordinance appropriating $18,756 from the Department of State Health Services (DSHS) for the Title XX grant in the No. 1066 Health Grant Fund to provide family planning services. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". Minutes - Regular Council Meeting June 14, 2005 - Page 5 8. MOTION NO. 2005-182 Motion authorizing the City Manager or his designee to execute a Contract for Professional Services with RVE, Inc., of Corpus Christi, Texas in the amount of $603,420 for Waldron Road from Purdue to Glen Oak and the Mediterranean Extension. (BOND ISSUE 2004) The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". MOTION NO. 2005-183 Motion authorizing the City Manager or his designee to execute a Contract for Professional Services with Coym Rehmet & Gutierrez Engineering, of Corpus Christi, Texas in the amount of $631,714 for Everhart Road, Phase 1 from Saratoga to Cedar Pass. (BOND ISSUE 2004) The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". 10. MOTION NO. 2005-184 Motion authorizing the City Manager or his designee to execute Ratification of Amendment No. 5 to the Contract for Professional Services with LNV Engineering, of Corpus Christi, Texas for a total fee of $112,114 and for a total re -stated contract fee of $1,013,119 for Street Resurfacing Project: (BOND ISSUE 2000) * Up River Road - from IH 37 to Leopard Street * Ayers Street - from SPID to Port Avenue * Gollihar Road - from Crosstown Expressway to Kostoryz Road The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". 11. MOTION NO. 2005-185 Motion authorizing the City Manager or his designee to execute a construction contract with Sechrist Hall Company, of Corpus Christi, Texas in the amount of $33,884.40 for the Fire Station No. 12 Re -Roof. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". Minutes - Regular Council Meeting June 14, 2005 - Page 6 12. MOTION NO. 2005-186 Motion authorizing the City Manager or his designee to execute a construction contract with Big State Excavation, of Houston, Texas in the amount of $560,230 for the Minor Storm Drainage Improvements Westview Drive Ditch. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". 13. MOTION NO. 2005-187 Motion authorizing the City Manager or his designee to execute an Engineering Materials Inspection and Laboratory Testing Contract with Professional Services Industries, Inc. (PSI), of Corpus Christi, Texas in an amount not to exceed $98,640 for the Corpus Christi International Airport Runway 13/31 Rehabilitation, Overlay, Blast Pads, Shoulders, Airfield Drainage Phase 3, Edge Lighting and Associated Site Work. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, and Scott, voting "Aye"; Noyola abstained. 14. ORDINANCE NO. 026298 Ordinance authorizing the City Manager or his designee to execute a Use Privilege Agreement with Old Concrete Street, Ltd., for the right to use a portion of the Broadway Wastewater Treatment Plant property for staging a fireworks display on July 2, 2005, and establishing a fee of $460. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". 16. MOTION NO. 2005-189 Motion authorizing the City Manager to execute a Deferment Agreement with Gotcher Construction, Inc., (Developer), in the amount of $31,861.28 for the installation of an 8 -inch sanitary sewer line to serve Bent Tree Unit 2, Lots 9A and 10A, Block 6 subdivision located west of Airline Road and north of Saratoga Boulevard, in accordance with the Platting Ordinance Section V -Required Improvements, Subsection A.3.(b). The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". Minutes - Regular Council Meeting June 14, 2005 - Page 7 17. ORDINANCE NO. 026299 Ordinance abandoning and vacating a portion of a 20 -foot wide (143.76 -square feet) utility easement out of Lot 12, Block 2, The Vineyards Unit 1A, located east of Airline Road and south of Saratoga Boulevard; requiring the owner, Rigoberto Lopez, to comply with the specified conditions. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". Mayor Garrett opened discussion on Item 15 regarding a contract for professional auditing services with Collier, Johnson & Woods. In response to Mr. Noyola's question, Director of Financial Services Cindy O'Brien replied that the city's external audit was highly specialized work. Even though Collier Johnson & Woods had performed well over the last 10 years, the city nevertheless issued a Request for Proposal for auditing services to see if any other firms were interested. In addition, staff mailed audit solicitation notices to local and out-of-town accounting firms. She said the city received two responses. After review by a committee, the Collier, Johnson & Woods proposal was the highest rated proposal. Mr. Noyola noted the term of the contract was one year with an option to extend for up to four additional twelve-month periods. He stated he would be in favor of amending the term of the contract to one year with an option to extend for two years instead of four years. Ms. O'Brien noted that the city could issue an RFP at any time during a two-year or a four-year renewal period. Mr. Kinnison spoke in support of staffs recommendation. He said the city could consider using an out-of-town firm, but the Council's usual thinking was to chose local companies whenever possible. He said the city should review whether there was a need to issue another RFP on an annual basi s. Ms. Cooper spoke in favor of staffs recommendation, saying a four-year renewal option would save time for staff. She said Collier Johnson & Woods had always done an excellent job, and she could see no reason why they wouldn't continue to do so. Mr. Noyola made a motion to amend the term of the contract to twelve months with an option to extend up to two additional twelve-month periods, seconded by Mr. Marez. City Secretary Chapa polled the Council for their votes on the motion to amend as follows: Marez and Noyola, voting "Aye"; Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, and Scott, voting "No". The motion to amend failed. City Secretary Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting June 14, 2005 - Page 8 15. MOTION NO. 2005-188 Motion authorizing the City Manager or his designee to execute a contract with Collier, Johnson & Woods, of Corpus Christi, Texas in the estimated amount of $126,000 to perform the financial and compliance audit requirements for fiscal year 2005. The term of the contract shall be for twelve months with an option to extend for up to four 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: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". * * * * * * * * * * * * * Mayor Garrett referred to Item 18, and a motion was made, seconded and passed to open the public hearing on the following zoning case: Case No. 0405-01, JIMREC: A change of zoning from a "R-1B"One-family Dwelling District on Tracts 1 and 2 and an "A-1" Apartment House District on Tracts 3, 4, and 5 to "B -I" Neighborhood Business District on Tracts 1 and 3, "AB" Professional Office District on Tracts 2 and 4, and "B-4" General Business District on Tract 5. The property is 23.91 acres being out of Lots 1, 2, 15, and 16, Section 10 in the Flour Bluff and Encinal Farm and Garden Tracts, located along the east side of South Staples Street and north of Yorktown Boulevard. City Secretary Chapa said the Planning Commission made the following recommendation - Tracts 1 and 3: Approval of a `B-1" Neighborhood Business District; Tracts 2 and 4: Approval of an "AB" Professional Office District; and Tract 5: Denial of `B-4" General Business District and, in lieu of, approval of a "B-1" Neighborhood Business District on the western 350 feet of Tract 5 and the remaining portion of Tract 5 be zoned "AB" Professional Office District. City Secretary Chapa said staff made the following recommendation - Tracts 1 and 3: Denial of `B-1" Neighborhood Business District and, in lieu of, approval of an "AB" Professional Office District; Tracts 2 and 4: Approval of an "AB" Professional Office District; and Tract 5: Denial of `B-4" General Business District and, in lieu of, approval of an "AB" Professional Office District. Mr. Gunning reviewed a number of slides of the subject property and the surrounding area. He then explained the main difference between the Planning Commission and staff's recommendations. The Planning Commission was recommending that Tracts 1, 3, and the western 350 feet of Tract 5, facing Staples Street, be zoned "B-1" Neighborhood District, while Tracts 1, 3, and the remaining portion of Tract 5 would be zoned "AB" Professional Office District. Staff was recommending that all the Tracts be zoned "AB" Professional Office District. Mr. Gunning stated staff was concerned about encouraging strip commercial development along the Staples Street corridor because it could adversely affect traffic in the area. Thus, he said staff was recommending the "AB" Professional Office District to provide development which would Minutes - Regular Council Meeting June 14, 2005 - Page 9 generate significantly less traffic per acre than the requested commercial development and would be much more conducive to mitigating traffic congestion on Staples Street. The "AB" Professional Office District provided a wide range of uses including professional offices, multi -family residential uses, medical clinics, hair salons, and studios. Mr. Gunning said "AB" zoning would accommodate the type of business and professional uses the developer was considering at this time. Mr. Gunning also pointed out there were a number of large, undeveloped lots surrounding the subject property (north toward Lipes Boulevard and south towards Yorktown Boulevard) that were zoned "B-4" General Business District and would generate more traffic and result in significantly more traffic congestion on South Staples Street. Subsequently, he said the "AB" Professional Office District would be more conducive to mitigating traffic congestion on Staples Street in the long term. Mr. Chesney pointed out that many of the lots surrounding the subject property were zoned "B-4" General Business District. He questioned the fairness of requiring that this property be zoned "AB" Professional Office District. Mr. Gunning explained the evolution of the zoning for the property in this area, saying that staff had made a commitment to allow "B-4" zoning in the Lipes Boulevard area and along the west side of Staples Street in the 1980s and early 1990s. He said staff was knowingly making a change in their philosophy, was now focusing on protecting the arterial corridors in the area for future development. In response to Mr. Chesney and Mr. Garcia's questions, Mr. Gunning stated staff had not received any specific development proposals from the applicant which made it difficult to consider changing to "B-1" zoning. He also said since South Staples Street was a state-controlled roadway, any points of access had to be approved by TxDOT. Mayor Garrett asked for public comment. Mr. Chuck Urban, 2725 Swantner, spoke in support of the Planning Commission's recommendation. He noted there were only three driveways being planned for this development, in accordance with TxDOT's new access point and curb cut regulations. Mr. Jacob Sudhoff, 3827 S. Alameda, also spoke in favor of the Planning Commission's recommendation. He stated that he had several signed contracts for the tracts that were contingent on the "B-1" zoning. He also reviewed the proposed plan for the property, which included buffer zones around the perimeter to protect the adjacent residential areas, limited points of access, and built in easements. In his experience, he did not feel there was enough of a market demand for "AB" zoning, but there was a substantial demand for `B-1" zoning. Mr. Kinnison asked Mr. Gunning to comment on Mr. Sudhoffs presentation. Mr. Gunning said he would have preferred to maintain the "R -1B" zoning and then develop a Planned Unit Development for the proposed development. However, in the absence of this type of zoning, he felt the proposed "AB" zoning would accommodate the applicant's plans well. Director of Development Services Barbara Bailey added that Mr. Sudhoffs plan sounded like a responsible development for the southside area, but staffs main concern was stripping out the arterials in the area. Ms. Cooper spoke in support of the Planning Commission's recommendation because she felt the development would address the need for retail uses on the southside of town. Minutes - Regular Council Meeting June 14, 2005 - Page 10 City Manager Noe cautioned the Council that they were simply approving a zoning action. There was nothing in their action that would require Mr. Sudhoff to develop the property in the manner he was presenting today. If the deal were to fall through for whatever reason, a completely different development could develop in the future. Mr. Marez spoke in support of the proposed development. Mr. Noyola spoke against the proposed development because he was not comfortable that it would be developed in the manner presented. Mr. Garcia made a motion to close the public hearing, seconded by Mr. Scott, and passed. City Secretary Chapa pointed out the ordinance before the Council reflected the Planning Commission's recommendation. City Secretary Chapa polled the Council for their votes as follows: 18. ORDINANCE NO. 026300 Amending the Zoning Ordinance, upon application by JIMREC by changing the zoning map in reference to 23.91 acres out of Flour Bluff and Encinal Farm and Garden Tracts, Section 10, Lots 1, 2, 15, and 16 from: "R -1B" One -family Dwelling on Tracts 1 and 2, and "A-1" Apartment House District on Tracts 3, 4, and 5 to: "B-1" Neighborhood Business District on Tracts 1 and 3, "AB" Professional Office District on Tracts 2 and 4, and "B-1" Neighborhood Business District on the western 350 feet of Tract 5 and "AB" Professional Office District on the remaining portion of Tract 5; 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: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, and Scott, voting "Aye"; Noyola voting "No". Mayor Garrett opened discussion on Item 19, and a motion was made, seconded, and passed to open the public hearing on the following zoning case: Case No. 0505-01, Staples Development, L.L.C.: A change of zoning from a "F -R" Farm - Rural District to a "R -1B" One -family Dwelling District. The property is 117.04 acres out of Flour Bluff and Encinal Farm and Garden Tracts, Section 20, a portion of Lots 19-22 and all of Lots 27-30, and Section 21, a portion of Lots 6 and 7, located along Airline Road, 400 feet south of County Road 26-A (Brooks Road) and west of Airline Road and Rodd Field Road intersection. Mr. Chapa stated the Planning Commission and staff recommended the approval of a "R -1B" One -family Dwelling District. No one appeared in opposition to the zoning change. Mr. Scott made a motion to close the public hearing, seconded by Mr. Garcia, and passed. Mr. Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting June 14, 2005 - Page 11 19. ORDINANCE NO. 026301 Amending the Zoning Ordinance, upon application by Staples Development, LLC., by changing the zoning map in reference to 117.04 acres out of a portion of Lots 19, 20, 21, 22, and all of Lots 27, 28, 29, and 30, Section 20, and a portion of Lots 6 and 7, Section 21, Flour Bluff and Encinal Farm and Garden Tracts from "FR" Farm -Rural District to "R -IB" One -family Dwelling District; 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: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". Mayor Garrett referred to Item 20, and a motion was made, seconded, and passed to open the public hearing on the following zoning case: Case No. 0505-02, Sterling M. Love: A change of zoning from a "R -1B" One -family Dwelling District to a `B-1" Neighborhood Business District. The property is in Sterling Corners, Block 1, Lot 4, located along South Staples Street and 500 feet north of South Staples Street and Lipes Boulevard intersection. City Secretary Chapa stated the Planning Commission and staff recommended the approval of a `B-1" Neighborhood Business District. No one spoke in opposition to the zoning change. Mr. Chesney made a motion to close the public hearing, seconded by Mr. Scott, and passed. City Secretary Chapa polled the Council for their votes as follows: 20. ORDINANCE NO. 026302 Amending the Zoning Ordinance, upon application by Sterling M. Love, by changing the zoning map in reference to Sterling Corners, Block 1, Lot 4, from "R -1B" One -family Dwelling District to `B-1" Neighborhood Business District; 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: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". Mayor Garrett called for a brief recess to present proclamations. * * * * * * * * * * * * * Mayor Garrett called for petitions from the audience. Ms. Jerry Bushong, 1402 Casa Linda, Minutes - Regular Council Meeting June 14, 2005 - Page 12 spoke regarding her concerns about graffiti in the Casa Linda area (bounded by Kostoryz and Weber Roads, and Carroll Lane). Mr. Brian Watson, 5813 Hugo, stated he would present the Council with a written statement regarding the Base Realignment and Closure (BRAC) process. He also thanked the city for their support of the Respite Center for Mentally Ill offenders. * * * * * * * * * * * * * Mayor Garrett called for a brief recess. ********** * ** Mayor Garrett referred to Item 21, and a motion was made, seconded, and passed to open the public hearing on the FY 2005-06 Crime Control and Prevention District budget, as adopted by the District's Board of Directors. Commander Bryan Smith was pleased to report the District had been able to curtail spending to stay within budget this year. He said staff and the Board scrutinized the budget to ensure that the program would remain within budget by the end of the five-year approval period to prepare for the next approval period in November 2007. Mayor Garrett asked if it was possible to reinstate the pawn shop detail program. Commander Smith replied that after review, staff estimated it would cost approximately $86,000 in Year 1 to hire three data -entry clerks and an additional $41,000 from the general fund to hire a supervisor, for a total of $127,000 per year. For the program to be successful, he said this was the minimum staffing level. He said District revenues had increased by seven percent this year, but the the Board was assuming a conservative three -percent revenue growth level in their projections. While the Board was in favor of reinstating the pawn shop detail program, they were concerned about whether the District could maintain the necessary revenue levels in the outlying years of the five-year period. Mr. Scott asked a number of questions regarding the structure of the tax revenues for the District. In response to Mr. Scott's question, Commander Smith said the District maintained a $700,000 surplus to account for exigencies and to cover costs in the event the district not approved by the voter. Mr. Noe noted the Board and the Council had established the funding of the additional 50 officers as the highest priority in the budget, and other programs would be funded as funds were available. He said the 50 officers were phased in over a two year period and took up most of the available funding. The District had been drawing down the phase-in balance over time, spending more than the available revenues. He said the District revenues may maintain current levels, but if the District were to add more programs, then there was more ground to make up to make the budget balance. Mr. Garcia spoke in support of the reinstating the pawn shop detail program, saying the program was worth the $127,000 expense. He asked Commander Smith to ask the Crime Control District Board Chairman to come before the Council to explain the Board's stance on financing the pawn shop detail. Minutes - Regular Council Meeting June 14, 2005 - Page 13 Mr. Kinnison stated it was important to consider the District's funding priorities. Commander Smith agreed, saying staff was projecting that within the next three to four years, police officer costs were going to absorb all the Crime Control District revenues. This may also affect the future funding of the Juvenile Assessment Center, which was partly funded by the District. Mr. Kinnison asked when the District tax expired. Commander Smith replied the tax would expire in April 2008, but the issue would have to go to an election before that date. City Manager Noe said staff would verify this information. Mr. Kinnison questioned that if the Board and the Police Department considered the pawn shop detail program to be important, then why wasn't the $120,000 included as part of the $53.6 million budget. Mr. Marez spoke in favor of reinstating the pawn shop detail program. Mayor Garrett asked for public comment. Mr. Abel Alonzo, 1701 Thames, spoke in favor of reinstating the pawn shop detail program. passed. Mr. Chesney made a motion to close the public hearing, seconded by Ms. Cooper, and * * * * * * * * * * * * * Mayor Neal referred to Item 22, an amendment to the Parks Master Plan. A motion was made, seconded, and passed to open the public hearing on the Item 22.a.: 22.a. Public hearing on a proposed amendment to the Comprehensive Plan of the City of Corpus Christi by amending the City of Corpus Christi Parks, Recreation, and Open Space Master Plan by amending Subsection 10 of Section 8.2 by adding provisions for playground equipment and green spaces in neighborhood parks; reconfirming the top ten list of highest priority recreation facility needs in Section 9.2; providing for repeal of conflicting ordinances. Director of Parks and Recreation Sally Gavlik reported that the city was required to amend their Parks Master Plan every two years based on Texas Parks and Wildlife regulations. In reviewing the master plan, staff found a contradiction which stated that all the smaller neighborhood parks would be green spaces. As part of Bond 2004, she said he city was currently planning for the installation and replacement of playground equipment for smaller neighborhood parks. Thus, staff was proposing an amendment to the Master Plan to allow for playgrounds and green spaces in neighborhood parks. In addition, Ms. Gavlik reported staff was also recommending the Council reaffirm the city's top 10 list of the highest priority recreation facilities because it would be important when the city applied for grants. There were comments from the public. A motion was made, seconded, and passed to close the public hearing. City Secretary Chapa polled the Council for their votes on Item 22.b. as follows: Minutes - Regular Council Meeting June 14, 2005 - Page 14 22.b. FIRST READING ORDINANCE Amending the Comprehensive Plan of the City of Corpus Christi by amending the City of Corpus Christi Parks, Recreation, and Open Space Master Plan by amending Subsection 10 of Section 8.2 by adding provisions for playground equipment and green spaces in neighborhood parks; reconfirming the top ten list of highest priority recreation facility needs in Section 9.2; providing for repeal of conflicting ordinances. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney was absent. * * * * * * * * * * * * * Mayor Garrett opened discussion on Item 23 regarding the Collective Bargaining Agreement with the Corpus Christi Firefighters' Association. City Manager Noe replied the city and Firefighters' Association had reached an agreement on their contract, which the union membership had voted on and approved over the weekend. Director of Human Resources Cynthia Garcia reviewed the key economic conditions included in the proposed agreement as follows: 2.25 percent raise to salaries effective 8/1/03; a 2.25 percent raise to salaries effective 11/1/04; a one-time contribution of $13,000 to the supplemental insurance amount sent to the association; an increase of $12.50 a month to the uniform allowance effective 8/1/04; an increase of $2 to the meal allowance of $4 for firefighters on call during mealtime; a one-time increase of $25.00 per firefighter to the performance pay amount of $150.00 scheduled for November 2005; addition of education pay in the overtime calculation; and addition of district chiefs to the callback rotation. In exchange for these conditions, Ms. Garcia stated the union agreed to a change in language and formulas describing the city's method of payment for salaries and other pay, which was important during state and federal law overtime claims. They also agreed to language giving the Fire Chief more discretion in entering into agreed discipline with employees. An increase in the number of personal leave days to equal the number for civilian and police employees was also added. Finally, the union agreed to acknowledge that the title of First Assistant Chief was now Deputy Chief. Mr. Noyola congratulated both city staff and the union for negotiating an agreement. He pointed out, however, that the agreement would expire on July 31, 2005, and the negotiations had taken two years. He spoke in favor of a longer term contract of four or five years rather than two years to save staff and union members time. In response to Mr. Kinnison's question, City Manager Noe replied there was no standard contract term. The term of the contract varied from 1 to 4 years, and depended on how predictable the city thought the economic future was. He noted there were a number of outstanding issues on both sides that still needed to be negotiated, and both sides wished to have an opportunity to discuss them further. Once these issues were resolved, then the city and the union could consider a longer- term contract. Minutes - Regular Council Meeting June 14, 2005 - Page 15 Mr. Marez spoke in favor of extending the term of the contract. Mayor Garrett called for public comment. Mr. Carlos Torres, President of the Firefighters' Association, spoke in favor of extending the contract to a three to four year term contract. He said the association would be ready to begin negotiations on the next contract on July 11. He also asked the city to reconsider the $100,000 they were spending on out-of-town lawyers fees and see if any local firms could handle the negotiations. Mr. Abel Alonzo, 1701 Thames, thanked the city and the union for coming to an agreement. He asked the Council not to forget the interests of the city employees, who were not unionized. Mr. Noyola reassured him that the Council was looking after the city employees. City Secretary Chapa polled the Council for their votes as follows: 23. MOTION NO. 2005-190 Motion authorizing the City Manager to execute on behalf of the City a Collective Bargaining Agreement with the Corpus Christi Fire Fighters' Association from August 1, 2003 through July 31, 2005, as negotiated by the City and association representatives. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". Mayor Garrett opened discussion on Item 24, a resolution requesting that the Base Closure Commission remove Naval Station Ingleside from the list of Pentagon recommendation for base closure. City Manager Noe explained the city had received a request from Congressman Ortiz that the Council adopt this resolution. City Secretary Chapa polled the Council for their votes as follows: 24. RESOLUTION NO. 026303 Resolution urging the Base Closure Commission to hold a hearing in the Corpus Christi area to personally evaluate the value of Naval Station Ingleside and to remove Naval Station Ingleside from the list of Pentagon recommendations for base closure. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kirmison, Marez, Noyola, and Scott, voting "Aye". Mayor Garrett opened discussion on Item 25, a resolution approving the State School Property Master Plan. Mr. Billy Delgado with the Parks and Recreation Department provided a brief history regarding the State School property. He said the undeveloped 40 acres of the 91.7 acre property was identified in the 2002 Parks, Recreation, and Open Spaces Master Plan identified the property as a high-priority site for a "Youth Sports Complex". Mr. Delgado stated the Parks Master Plan identified the following ten priorities for future park development as follows: soccer fields; trails; picnic pavilions; playgrounds; practice facilities for baseball/softball; practice soccer/football fields; skating facilities; enhanced aquatics facilities; outdoor covered basketball pavilions; and nature habitat or nature areas. He said all ten components Minutes - Regular Council Meeting June 14, 2005 - Page 16 were included in the design of the State School Master Plan. Mr. Art Sosa with the Parks and Recreation Department reviewed the site plan for the State School property. Mr. Sosa reviewed the budget for the State School Master Plan. He said Phase I of the project totaled $1,000,000, $500,000 of which was obtained from Bond 2004 funds and the remaining $500,000 would be obtained from a grant. Phase II totaled $3.9 million and Phase III totaled $1.6 million, for a total project cost of $6.6 million. He provided a detailed list of amenities for each phase. Ms. Reba George with the Parks and Recreation Department briefly discussed funding opportunities. She said part of the item on the agenda today included permission to submit a grant application to the Texas Parks and Wildlife Program for $500,000. These funds would be leveraged matching funds from the $7.4 million in park and recreation bond projects approved by voters last November. She said these funds would provide the $1 million in funding required for Phase 1 of the State School Property Master Plan. Mr. Noyola suggested that staff add a Youth Football field to the plan. Mr. Delgado said staff could look at adding this component, but noted the main demand had been for soccer fields. Mr. Noyola spoke in support of the project. In response to Mr. Kinnison's question, Ms. Gavlik replied staff would know if the grant was approved in September, and the grant would be received in January. Actual construction would probably not take place until a year from now. Mr. Garcia spoke in support of the proposed master plan, saying it was magnificent. Mayor Garrett spoke in support of Mr. Noyola's suggestion to add a Youth Football field. Mayor Garrett asked for public comment. Mr. Abel Alonzo, 1701 Thames, asked a number of questions including the administrative costs for the project and whether the public had been involved in the plan development. The foregoing resolution was passed and approved with the following vote: 25. RESOLUTION NO. 026304 Resolution approving the State School Property Master Plan; authorizing the City Manager or his designee to submit a grant application to the Texas Parks and Wildlife Department in the amount of $500,000 for planning, developing, and implementing the State School Property Master Plan, with a City match of $500,000 in the Bond 2004 Fund and a total project cost of $1,000,000. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, and Noyola, voting "Aye"; Scott was absent. Mayor Garrett asked for a brief recess. Minutes - Regular Council Meeting June 14, 2005 - Page 17 * * * * * * * * * * * * * Mayor Garrett opened discussion on Item 26 regarding the FY 2005-06 General Fund proposed budget. City Manager Noe said the item was comprised of two parts. Item 26.a. was related to a discussion on budget/finance processes and policies that was raised during the Council Retreat. Item 26.b. was an overview of the FY 2005-06 General Fund proposed budget. Assistant City Manager Oscar Martinez reviewed a list of assumptions used in the five-year forecast. He discussed the projected deficits that the city may see in FY 2007 ($3.1 million), FY 2008 ($5.4 million), FY 2009 ($5.2 million), and FY 2010 ($4.7 million). He also noted that the city's revenues were susceptible to economic fluctuations. Assistant City Manager Martinez discussed the highlights of the current financial policies that Council had approved on May 17, 2005. He also discussed a list of possible process/policy issues for Council consideration. Mr. Martinez also mentioned a team of city staff had been assigned to work with the Council and City Manager to develop recommendations, noting that other team members may be assigned as necessary. Mr. Noyola suggested that a member of the Engineering Department be assigned to the team as well. Regarding possible process/policy issues, Mr. Kinnison proposed that the Council consider adopting a policy to control the amount of revenue growth the city allowed in the general fund every year. He was concerned that general fund expenditures were growing every year, so he would like the city to limit revenues so the city's spending would be limited to this growth. He said he would have preferred for the Council to have had this discussion two or three months ago, rather than now, but still wanted to raise the issue. Mr. Noe stated staff would have needed to receive this guidance from the Council last Fall in order to implement it this budget year. He said it was unfortunate that the budget year (August 1) and the election year (April) were not in sync, so it did not provide sufficient time to discuss Council priorities for the first budget cycle after the election. He said it would be preferable to phase in this policy over time. Mr. Chesney agreed with Mr. Noe that it would difficult to adopt Mr. Kinnison's suggestion now. He thought it would be appropriate to discuss this policy change in the upcoming Fall. He was concerned how limiting revenues would affect the city's budget in the long run. Mr. Kinnison stated that sooner or later, the city would have to decrease its spending. He said the Council discussed lowering taxes during the campaign season, yet was reluctant to make the budget cuts necessary to make it a reality. He said health benefits were predicted to increase by 10 to 12 percent and MIS costs were estimated to increase by 12 percent. He felt the city could cut $1.5 million from the current budget without affecting primary services. Mr. Chesney and Mr. Garcia expressed concern about asking staff to cut $1.5 million out of the budget at this time. Mayor Garrett suggested that the Council schedule a Fall retreat to discuss the city's budget/finance processes and policies. Minutes - Regular Council Meeting June 14, 2005 - Page 18 Mr. Noyola stated he did not want to see service delivery affected by any budget cuts. Mr. Marez spoke in favor of changing the City Council elections to November instead of April. Mr. Kelly spoke in favor of a tax cut only if it was equal for all property tax payers across the board. He commented that most of the calls he received were to increase city services, not decrease them. He further stated he did not want to see an increase in the tax rate. Mr. Chesney stated he would like staff to look at how the city could maintain or reduce the tax rate for the next five years while still balancing the budget. Mr. Kinnison commented that if the city was unwilling to affect employee salaries and benefits, then they would not be able to cut the budget. He noted that Council approved a police contract including an increase to their TMRS contribution by one percent which then affected all city employees. He said if the city were to drop this retirement plan contribution plan from the budget, then it would make a difference. He said he did not want to decrease service delivery; rather, he felt there were ways to decrease expenditures without affecting service delivery. He looked forward to discussing the matter in a Fall retreat. Mr. Martinez resumed his presentation, providing an overview of the FY 2005-06 general fund budget. He first discussed general fund revenues. He said projected general fund revenues in FY 2005-06 were estimated at $167,805,648, saying three quarters of this amount was comprised of property taxes, sales taxes, and solid waste and franchise fees. He said property taxes were estimated at $44 million in FY 2005 and $46.5 million in 2006. He reviewed graphs depicting the historical net taxable values and tax rates. Mr. Martinez discussed the percent change in sales tax collection. In FY 2005, sales tax revenues were estimated at $36.1 million and $37.6 million in FY 2006. Industrial district revenues were estimated at $5.7 million in FY 2005 and $5.9 million in FY 2006. Franchise fee revenues were predicted to decrease from $16,087,449 in FY 2005 to $16,070,729 in FY 2006. Mr. Kinnison asked what was driving the decrease. Mr. Noe and Mr. Martinez said it was difficult to predict why it was decreasing, but their guess was that it due to people switching to cell phones instead of land lines. Mr. Kinnison asked about franchise fees for those companies that offered bundled services (cable, phone, and intemet). Mr. Martinez replied that those companies were not paying for internet and telephone services. This was an outstanding issue that was being decided by the courts. Mr. Martinez discussed solid waste revenues in detail, which involved the closing of the J.C. Elliott landfill and the opening of the Cefe Valenzuela landfill. Mayor Garrett asked if the projects were on schedule. Director of Solid Waste Services Jeff Kaplan replied affirmatively, saying the Cefe Valenzuela landfill would be ready to go in October 2006. Mr. Martinez discussed municipal court revenues, saying the proposed FY 2006 revenues were expected to be $5.3 million in FY 2006, a slight increase from FY 2005 estimates. Minutes - Regular Council Meeting June 14, 2005 - Page 19 Mr. Martinez covered the administrative charges revenues, noting they were estimated to decrease by approximately $400,000 because of the merger of the Ambulance Fund into the General Fund. FY 20005 revenues were $5.3 million and FY 2006 revenues were estimate at $4.8 million. Mr. Martinez stated that public safety revenues were estimated to increase from $5.1 million in FY 2005 to $8.8 million in FY 2006. The increase was due to the merger of the Ambulance Fund into the General Fund. Finally, he discussed other revenues sources, saying they predicted to increase from $2.3 million in FY 2005 to $2.1 million in FY 2006. Mr. Martinez then discussed General Fund expenditures, estimated at $167.8 million in FY 2006. He discussed the key issues and major strategies and priorities in the following areas: general government expenditures ($11.3 million); municipal court ($4.2 million); museum ($1.4 million); fire ($34.3 million); police ($53.6 million); health ($4.1 million); library services ($3.5 million); park and recreation ($14.9 million); street and solid waste services ($27.6 million); engineering services ($3.9 million); and neighborhood services ($1.3 million). Mr. Martinez provided a summary of salary and fringe benefits for FY 2005-2006, totaling $4.4 million dollars. He also reviewed a list of additional costs included in the FY 2006 General Fund Budget, totaling $10 million, and how these costs were reconciled. Mr. Martinez discussed how the general fund unreserved budget has grown over time, ending with an estimated $14.3 million in FY 2005. Finally, Mr. Martinez reviewed the budget calendar as follows: June 21 - enterprise fund discussion; June 28 - special revenue/intemal services/debt service funds; July 12 - budget hearing; July 19 - first reading; and July 26 - second reading and adoption. * * * * * * * * * * * * * Mayor Garrett called for the City Manager's report. City Manager Noe reported repair work was scheduled on a water line on Clarkwood Road near Leopard Street and McNorton next Monday at 8:00 a.m. He said next week's agenda included the following items: budget discussion; Crime Control budget discussion; ordinance ordering the September 10 election on the smoking ordinance; and discussion on coliseum reuse. Mayor Garrett asked about the possibility of building on lots that were 25 x 100 feet in the older neighborhoods in town. He said current city ordinances prevented these lots from being built on. City Manager Noe replied staff would review this issue, saying other communities had worked to combine lots into buildable lots rather than build substandard structures. Mr. Kelly commented that he was also interested in making these lots more usable, but doubted where the city could combine lots because of title requirements. He preferred allowing the lots to be built on as is. Mr. Noe said he would review the issue and report to the Council. Mayor Garrett called for Council concerns and reports. Mr. Garcia thanked staff for handling Minutes - Regular Council Meeting June 14, 2005 - Page 20 the problem with deer on Flour Bluff Drive. He also asked how the city dealt with hiring contractors after a hurricane had hit the city. Assistant City Manager Ron Massey said the city would investigate problems with any contractors. Mr. Noe added the city would put a contract in place to assist the city in address debris removal and street clearing. He said the city was looking at making changes to approve a large number of building permits after a hurricane. Mr. Kelly stated Mr. Jaime Lopez with the Street and Solid Waste Department was proponent of recycling, and he wished to speak with the City Manager about some funds he had received from Wal-Mart to purchase signage to promote recycling. Mr. Noe said staff would speak with him today. Mr. Marez thanked staff and the Council for participating in the town hall meeting last week. He assured the public that staff did follow up on the issues raised at the meeting. Mr. Noyola announced that Mr. Jesse Olivarez with Coca-Cola was inviting the Council to attend the Corpus Christi Hooks game this Thursday night. Mr. Noe noted that this game was being regionally televised. There being no further business to come before the Council, Mayor Garrett adjourned the Council meeting at 3:53 p.m. on June 14, 2005. * * * * * * * * * * * * *