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HomeMy WebLinkAboutMinutes City Council - 05/30/2006I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Regula Meeting of the Corpus Christi City Council of May 30, 2006, which were approx ed by the Cit. Council on June 6, 2006. WITNESSETH MY HAND AND SEAL, on this the 6' day o t June 2000 Armando Chapa City Secretary SEAL PRESENT Mayor Henry Garrett Mayor Pro Tem John Marez Council Members: * Brent Chesney Jerry Garcia Bill Kelly Rex Kinnisor Jesse Noyola Mark Scott ABSENT Melody Cooper MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting May 30, 2006 - 10:00 a.m. 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 Pastor Jerry Ward of Lighthouse Tabernacle Pentecostal Church and the Pledge of Allegiance to the United States flag was led by Council Member Scott. Mayor Garrett called for approval of the minutes of the regular Council meeting of May 23, 2006. 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: Transportation Advisory Committee David Seiler (Reappointed Daniel Carrizales (Reappointed) Karen Beard (Appointed) Curtis A. Rock (Appointed Wgter Shore Advisory Committee Phillip Lara (Reappointed) Victor Menard (Reappointed) James H. Davis (Appointed) Dr. George H. Fisher (Appointed) Robert R. Vega (Appointed) Mayor Garrett called for consideration of the consent agenda (Items 3 - 17). There were no comments from the audience. A motion was made and passed to approve Items 3 through 17, constituting the consent agenda. City Secretary Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting May 30 2006 - Page 2 MOTION NO. 2006-156 Motion approving the purchase of six (6) pickup trucks, two (2) cargo vans and seven (7) sedans from the following companies for the following amounts in accordance with Bid invitation No. BI -0123-06, based on low bid and low bid meeting specifications for a total amount of $216,558. The vehicles are purchased for Maintenance Services and Police. All vehicles are replacement units. Funds are available in the Law Enforcement Trust Fund and he Operation Budget of the General Services Department. Champion Ford Access Ford Corpus Christi, TX Corpus Christi, TX Pickups and Vans Sedans $124,872 $91,686 Grand Total: $216,558 The foregoing motion was passed and approved with the following vote: Garrett, Garcia, Kelly, Kinnison. Marez, Noyola. and Scott, voting "Aye"; Chesney and Cooper were absent. MOTION NO. 2006-157 Motion approving a supply agreement with National Meters, Inc., of Lancaster, Ohio, for approximately 8,000 gas service regulators in accordance with Bid Invitation No. BI -0124-06, based on low bid for an estimated annual expenditure of $103,600, of which $17,266.67 is budgeted in FY 2005-2006. 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 supplier and the City Manager or his designee. Funds have been budgeted in FY 2005- 2006 and requested for FY 2006-2007. The foregoing motion was passed and approved with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent. MOTION NO. 2006-158 Motion authorizing the City Manager or his designee to execute an agreement with the CHRISTUS Spohn Health System for the provision of medical director services in the amount of $30,00C for the City's Emergency Medical Services and emergency medical educational services. The foregoing motion was passed and approved with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent. 6.a. ORDINANCE NO. 026793 Ordinance appropriating $1,000 from the Wal-Mart Foundation in the General Fund No. 1020-11700; amending the FY 2005-2006 Operating Budget, adopted by Ordinance No. 026385, by increasing the amount approved by $1,000. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Garcia. Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent Minutes - Regular Council Meeting May 30 2006 - Page 3 6.b. MOTION NO. 2006-159 Motion approving payment in the amount of $1,000 to the Police Explores Post #133 for purchase of equipment and training of the Police Explorers. The foregoing motion was passed and approved with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent. ORDINANCE NO. 026794 Ordinance appropriating $14,505 from the sale of seized vehicles in the No. 1061-821005 fund for purchase of equipment and training of police officers. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent 8.a MOTION NO. 2006-160 Motion authorizing the City Manager or his designee to accept a renewal Weed & Seed grant in the amount of $225.000 in the No. 1067 Parks and Recreation Grants Fund for Site II West for the continued support of the Weed & Seed Program from the United States Department of Justice (DOJ. The foregoing motion was passed and approved with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent. 8.b. ORDINANCE NO. 026795 Ordinance appropriating a $225,000 grant from the United States Department of Justice for Site 11 West for the continued support of the Weed and Seed Program FY 2005-2006 in the No 1067 Parks and Recreation Grants Fund. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent RESOLUTION NO 026796 Resolution authorizing the City Manager or his designee to submit a grant application to serve as the Fiscal Agent for FY 2006-2007 Texas Department of Family and Protective Services (DFPS) 78415 Community Youth Development (CYD) Program, with $500,000 DFPS funding. The foregoing resolution was passed and approved with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent. Minutes - Regular Council Meeting May 30 2006 - Page 4 10. ORDINANCE NO. 026797 Ordinance transferring $3,000 from the No. 1020 General Fund Account No. 202965-1020 TO Account No. 530000-1020-13700; and appropriating the $3,000 to pay expenses for the Bay Jammin' Concert series. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent. MOTION NO. 2006-161 Motion authorizing the City Manager or his designee to approve a Letter of Agreement between the City of Corpus Christi and the Beautify Corpus Christi Association (BCCA). The foregoing motion was passed and approved with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent. MOTION NO. 2006-162 Motion authorizing the City Manager or his designee to execute a contract with the Department of State Health Services for the administration of duties performed by the Vital Statistics Division cf the Health Department and for the payment of record fees due to the State. The foregoing motion was passed and approved with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent. 3. MOTION NO. 2006-163 Motion authorizing the City Manager or his designee to execute a professional services contract with GISPlanning, Inc , of San Francisco, California for an amount not to exceed $34,600 for a license to the City for the online use of GIS Planning's ZoomProspector software as hosted by GISPlanning, Inc. for use as client's Economic Development Site - Selection Analysis GIS Web Site. The foregoing motion was passed and approved with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola. and Scott. voting "Aye"; Chesney and Cooper were absent. MOTION NO. 2006-164 Motion authorizing the City Manager or his designee to execute Amendment No. 1 to the Engineering Services Contract with Freese and Nichols, Inc., of Fort Worth, Texas in an amount not to exceed $74,500 for the Wholesale Raw Water SCADA Improvements - 2005 Project for the Replacement of Master Meter No. 1 at O. N. Stevens Water Treatment Plant. The foregoing motion was passed and approved with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent. Minutes - Regular Council Meeting May 30 2006 - Page 5 ORDINANCE NO. 026798 Ordinance authorizing the City Manager or his designee to execute a Use Privilege Agreement with Mako Communications, L.L.C. (Owner) for the right to construct, maintain, and replace two (2) awnings within the North Lower Broadway Street right-of-way and one 1 J awning within the Peoples Street right-of-way, adjacent to the Mako Communications building, located at 518 Peoples Street; establishing a fee of $162. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent. 16. ORDINANCE NO. 026799 Amending the Platting Ordinance by adding the authority to delegate duties under the Platting Ordinance and specifying authority for signing plats by a professional engineer employed by the City; providing a severability clause; providing a repealer clause; and providing for an effective date. (First Reading 05/23/06) The foregoing ordinance was passed and approved on its second reading with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent. 17. ORDINANCE NO. 026800 Amending the Code of Ordinances, City of Corpus Christi, Chapter 53, Traffic, revising Section 53-251. Schedule II by adding the category "Other Through Streets"; by adding Parr Street, from Comanche Street to Ahern Street, Ahern Street, from Parr Street to Bluntzer Street, and Bluntzer Street, from Ahern Street to Agnes Street; providing for penalties. (First Reading 05/23/06) The foregoing ordinance was passed and approved on its second reading with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent. 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. 0406-06, G.P. McCreless, Juan Melia and Encino -Cimarron G.P. c/o Tim Clower: A change of zoning from a "R -1B" One -family Dwelling District/"A-1" Apartment House District/"A-2" Apartment House District to a "B-1" Neighborhood Business District. The property being 39 acres out of Flour Bluff and Encinal Farm and Garden Tracts, Section 11, ots 6,7,8, 9 and 10, located 375 feet southwest of the intersection of Saratoga Boulevard and Cimarron Boulevard. City Secretary Cnapa said the Planning Commission and staff recommended the approval of the `B-1" Neighborhood Business District. No one appeared in opposition to the zoning change. Mr. Garcia made a motion to close the public hearing, seconded by Mr Scott, and passed. Mr. Chapa polled the Council for their votes as follows Minutes - Regular Council Meeting May 30 2006 - Page 6 ORDINANCE NO. 026801 Amending the Zoning Ordinance, upon application by G.P. McCreless, Juan Mejia and Encino -Cimarron GP. c/o Tim Clower, by changing the zoning map in reference to 39 acres out of Lots 6, 7. 8, 9 and 10, Section 11, Flour Bluff and Encinal Farm and Garden Tracts, from "R -1B" One -family Dwelling District, "A-1" Apartment House District and "A-2" Apartment House District to 'B-1" Neighborhood Business District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause: providing a penalty clause. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent. Mayor Garrett referred to Item 19, and a motion was made, seconded, and passed to open the public hearing on the following zoning case: Case No. 0406-07, Alan Anderson: A change of zoning from an "1-2" Light Industrial District to an "1-3" Heavy Industrial District. The property being .0121 acres out of 4.85 acres out of Lot 8, Block B, Ocker Addition, located at 1111 Southern Minerals Road and approximately 450 feet north of Sedwick Road. City Secretary Chapa stated that the Planning Commission and staff recommended the denial of the "1-3" Heavy Industrial District and in lieu thereof, approval of a Special Permit for the above -ground fuel tank per the metes and bounds description. No one spoke in opposition to the zoning change. Mr. Scott made a motion to close the public hearing, seconded by Mr. Garcia, and passed. City Secretary Chapa polled the Council for their votes as follows: 19. ORDINANCE NO. 026802 Amending the Zoning Ordinance, upon application by Alan Anderson, by changing the zoning map in reference to .0121 acres out of 4.85 acres out of Lot 8, Block B, Ocker Addition (currently zoned "1-2" Light Industrial District) by granting a Special Permit for an above ground fuel storage tank per the metes and bounds description; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Chesney and Cooper were absent. 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. 0506-01, Arriba Development, LLC: A change of zoning from a "R-1 B One -family Dwelling District to a "B-4" General Business District. The property being 1.97 acres out of B. S. & F. Survey 419, Abstract 570, Nueces County, Texas, located at the northwest ntersection of Interstate 37 frontage road and Sessions Road. City Secretary Chapa stated that the Planning Commission and staff recommended the Minutes - Regular Council Meeting May 30. 2006 - Page 7 denial of the "B-4" General Business District and, in lieu thereof, approval of a "B-1/SP" Neighborhood Business District with a Special Permit for a one year period that allows for a hotel or motel development. '(Mr. Chesney arrived at 10:10 a.m. ) No one spoke in opposition to the zoning change. Mr. Garcia 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. 026803 Amending the Zoning Ordinance, upon application by Arriba Development by changing the zoning map in reference to 1.97 acres out of B. S. & F. Survey 419, Abstract 570, Nueces County, from "R -1B" One -family Dwelling District to "B-1" Neighborhood Business District with a Special Permit for a hotelimotel use; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause; providing a penalty clause, An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye" Cooper was absent Mayor Garrett referred to Item 21, and a motion was made, seconded, and passed to open the public hearing on the following zoning case: Case No. 0506-02, Nasser Farahnakian: A change of zoning from a "R -1B" One -family Dwelling District to a "B-4" General Business District. The property being 5.739 acres out of 254 069 acres, Abstract 988, Nueces County, Texas, located along the southwest corner of Clarkwood Road and the newly constructed State Highway 44 Bypass. City Secretary Chapa stated that the Planning Commission and staff recommended the approval of the "B-4" General Business District. No one spoke in opposition to the zoning change. Mr. Garcia made a motion to close the public hearing, seconded by Mr. Chesney, and passed. City Secretary Chapa polled the Council for their votes as follows: 21. ORDINANCE NO. 026804 Amending the Zoning Ordinance, upon application by Nasser Farahnakian, by changing the zoning map in reference to being 5.739 acres out of 254.069 acres, Abstract 988, Nueces County, Texas, from "R-1 B" One -family Dwelling District to "B-4" General Business District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause; providing a penalty clause. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye" Cooper was absent. Minutes - Regular Council Meeting May 30. 2006 - Page 8 Mayor Garrett referred to Item 22, a presentation on the Coliseum Redevelopment Request for Qualifications/Request for Proposals process. Mayor Garrett emphasized that the purpose of the today's presentation was solely to discuss the Coliseum RFQ/RFP process, not the contract negotiations. Mr Noyola stated that the Council had already discussed the Coliseum RFQ and RFP process previously Assistant City Manager Oscar Martinez responded affirmatively, stating that staff had presented an overview of the RFP/RFQ process in June 2005, and an update in January 2006. Mr. Noyola expressed concern that the Council was discussing the Coliseum Redevelopment process because he felt it could jeopardize the city's contract negotiations. He was against discussing the process in public because he felt it did not show good faith, and said he would not participate in the discussion if it involved the contract Mayor Garrett asked City Attorney Fischer if the Council could legally discuss the Coliseum redevelopment RFP and RFQ process. City Attorney Fischer answered affirmatively, as long as the Council focused the discussion strictly on the process, not the contract negotiations. She said any comments related to the contract negotiations could be discussed during the Council's executive sessior Mr. Scott stated that he did not feel that discussing the process presented a problem. He stated that he thought the Council's previous discussion regarding the Coliseum redevelopment had been open and transparent, but the public appeared to be confused about the process. Mr. Scott stated that he hoped staff's review of the process would help clarify any public concerns about the Council's decision. He also hoped the review would reaffirm the Council's decision. Mr Chesney agreed with Mr. Scott. He felt the city had gone through the process properly the first time, but he did not oppose today s review. He said the Mayor and other Council members had asked for the presentation to reach out to the public's concerns. Mr Garcia thanked staff for providing additional information on the Coliseum RFP/RFQ process He reviewed the nformation and said it had answered many of his questions. Assistant City Manager Oscar Martinez briefly reviewed the Memorial Coliseum RFP/RFQ process. He stated that at the May 2005 City Council retreat, the Council identified downtown revitalization as one of six priority areas. Subsequently, the Council directed staff to formulate a plan for the re -use and redevelopment of the Coliseum by year's end. in June 2005. Mr. Martinez stated that staff made a presentation on the Coliseum's proposed re -use and rehabilitation, .ncluding the use of a RFQ followed by an RFP process to qualified developers. The Council approved the process and authorized staff to proceed. Mr. Martinez reviewed the guiding principles on the coliseum re -use as follows: project to be identified quickly so the deteriorating Coliseum structure did not become an eyesore; project must conform to the Bayfront Master Plan, limited city financial involvement; project must support Downtown redevelopment as a priority; and a transparent process Mr. Martinez provided a process summary as follows: issue RFQ to a large list of potentially interested developers; review responses and short list developers capable of performing based on firm competence and experience: RFP issued to short listed firms selected for negotiations; proposals analyzed with one firm selected for negotiations; Council to approve developer selected; and Final Plan and Lease -o be brought back for Council approval. Minutes - Regular Council Meeting May 30 2006 - Page 9 Mr Martinez reviewed a summary of actions on the Coliseum redevelopment process to date as follows. RFQ issued or July 25 2005; six qualification statements received on September 12, 2005; notice to respondents who were short listed (LandLord, NRP, Wisznia, TRT) sent on October 5. 2005;. RFP issued on October 17, 2005; pre -submittal conference held on October 21, 2005; review and analysis of responses to RFP completed in early January, 2006; and Council presentation and recommendation to negotiate with TRT presented on January 30, 2006. Mr Martinez discussed the RFP evaluation process. He said staff assessed the qualifications and competence of RFP responders to perform the required services. In addition, he said a city team and PFK, the city's consulting team, reviewed and ranked the proposals. He said Mr. Raymond Gignac and the Bayfront Master Plan team also provided comments for the city team to cons±de- Mr Martinez reviewed the RFP requirements considered by the evaluators as follows: proposer's core competency; project concept; economic development potential; community needs addressed: redevelopment of the surrounding area; conformance with the South Central Development Plan and the Bayfront Master Plan. He said additional RFP requirements evaluated now the heritage of the building and plaque would be memorialized; the estimated cost and projected revenues; the timeline for project completion explanation on community involvement; and provided financial information. Mr. Martinez discussed the PFK report, which was 17 pages long and included three exhibits He said PFK noted on page 2 of their report that three of the four proposals were responsive to the RFP requirements as follows: NRP Group, TRT Development Company, and Wisznia Associates. He said the report ranked the three responsive proposals as follows: TRT — 8.9 points: NRP - 8.1 points; and Wisznia Associates — 7.7 points. Mr. Martinez covered the PKF report's conclusions and recommendations, which include three options for consideration, depending on available resources and motivation. First, the city could select TRT because it was the only plan that offered a positive impact and required little or no financial resources from the city. Second, the city could select Wisznia Associates but only after the firm had completed market research and retained a specialty retail developer. In addition, he said the city would have to agree to make a financial contribution to the project as proposed. Third, the city could follow a modified version of the LandLord Resources recommendation by taking charge of the development process to secure a "new urban" retail mixed use project on the site. Thus, the city would hire a nationally recognized firm to develop the analysis, determine the "gap" in the financial feasibility, and only move forward if the "gap" could be overcome with city subsidy or financial support Mr Martinez ther reviewed the complete Memorial Coliseum RFP scoring matrix, stating that the LandLord Resources proposal was not scored. After the evaluation process was completed, Mr. Martinez reported that staff provided the Council with a summary of the responses, the evaluation process, and the scores. He said the Council directed staff to enter into negotiations with TRT Holdings on January 31, 2006. He said staff was still negotiating with TRT n conclusion, Mr. Martinez stated that staff had been following the process approved by the Council, along with the guiding project principles, that were outlined from the start. Of the four proposals submitted, he said three proposals were responsive to the RFP; LandLord Resources was not responsive and thus was not scored. He said the TRT Holdings proposal was rated as the pest proposal because it met the city's requirements as stated in the RFP. He noted that if the city chose to consider any other approach such as LandLord Resources or the PKF recommendation, then staff would have to reject the three current proposals and begin the process anew. Minutes - Regular Council Meeting May 30 2006 - Page 10 After conferring with City Attorney Fischer, Mr. Garcia decided to hold his questions until the executive session item dealing with the coliseum redevelopment. Mr Marez asked Mr. Martinez if he or any other member of city staff had a hidden agenda regarding the coliseum redevelopment. Mr. Martinez replied negatively. Mr. Marez spoke in support of staff's actions regarding the Coliseum redevelopment process. Mr Chesney thanked staff again for reviewing the Coliseum material again for the public's nformation Mayor Garrett opened discussion on Item 26 regarding the Texas International Yacht and Jet Plane Show Lease. City Manager Noe stated that at last week's meeting, Council Member Kinnison had raised a question regarding the definition of "net profits" in the agreement. He said staff had clarified the definition in the agreement in Item 26.a. of the two-part item. There were no comments from the audience. In response to Mayor Garrett's question, Marina Superintendent Peter Davidson stated that staff would present a road closure item for the Council's review to close 'he T -head for the show. Mayor Garrett thanked Mr. Davidson for his efforts. Mr Scott commented that he wanted Mr. Peter Bryant, the boat show organizer, to know that the city was excited that the show was coming to Corpus Christi. Mr. Bryant replied that the show was progressing well, and people were excited about the prospect of visiting the city. With the publicity from the show, Mr. Bryant stated that the city could become a boating center for the southern region, including Mexico City Secretary Chapa polled the Council for their votes as follows 26.a. MOTION NO. 2006-165 Motion to amend prior to second reading ordinance authorizing the City Manager or his designee to execute a Lease Agreement with Peter Bryant (MMD Communications) for a term of 8 days in April, 2007, for the Texas International Yacht and Jet Plane Show at the Peoples Street T -Head; providing for two 5 year renewals upon City Manager, or designee, finding show successful for City; by amending Lease Section 6 to provide that City, in lieu of marina rental fees shall received greater of: $25,000 or 10% of Net Profits, as defined in Exhibit F. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent. 26.b. ORDINANCE NO. 026806 Authorizing the City Manager or his designee to execute a Lease Agreement with Peter Bryant (MMD Communications) for a term of 8 days in April, 2007, for the Texas International Yacht and Jet Plane Show at the Peoples Street T -Head; providing for two 5 year renewals upon City Manager or designee, finding show successful for City. (First Reading 4/25/06) The foregoing ordinance was passed and approved on its second reading with the following vote. Garrett, Chesney, Garcia. Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was abseni Minutes - Regular Council Meeting May 30 2006 - Page 1 1 Mayor Garrett opened discussion on Item 27 regarding the new Southside branch library. City Manager Noe stated that the Council authorized staff to negotiate an Interlocal Agreement with CCISD for a new Southside library location located near Kaffie Middle School. Director of Libraries Herb Canales stated that the proposed agreement was approved by the CCISD School Board last Monday. He said the major features of the agreement were as follows: the library site would be next to Kaffie Middle School; CCISD would provide a long-term lease for a $1 annual fee; addressed design and security issues raised by the Council; and CCISD would help staff the facility (184 -day contract year) and share utility and custodial costs (12 months). There were no comments from the public. City Secretary Chapa polled the Council for their totes as follows: 27. RESOLUTION NO 026807 Resolution authorizing the City Manager or his designee to execute an Interlocal Agreement with the Corpus Christi Independent School District to locate and jointly operate a branch ibrary on district property next to the Kaffie Middle School. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly. Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent Mayor Garrett opened discussion on Item 28 regarding the Cimarron Boulevard Street improvement Project Phase 2. City Engineer Angel Escobar reported that this project was funded through the Bond 2004 issue; he also noted that the city was doing Phase 2, from Yorktown to Mireles Elementary (Bison Street), before Phase 1, from Saratoga to Yorktown. He said approval of item 28.a. would award the construction contract to H & G Contractors in the amount of $3,774,910. Approval of Item 28.o. would award the Construction Materials Testing Contract to Rock Engineering and Testing Laboratory it the amount of $32,639. Mr Escobar stated that the project included the reconstruction and widening of the existing unimproved two-lane roadway to a functional arterial four -lane roadway with the following features: continuous center turn lane; curb and gutter; sidewalks; driveways; underground utilities; lane striping and markings, and installation of wheelchair ramps to meet TDLR requirements. Additionally he reported that the project included improvements to the drainage ditch from the intersection of Yorktown and Cimarron Boulevard through Bill Witt Park. He said a traffic signal would be installed at the intersection of Cimarron and Yorktown. He also explained that the project was being awarded now so construction could begin in the summer when Mireles Elementary School was less occupied. Mr Escobar reported that the city would be holding a citizens meeting at Mireles Elementary School during the second week in June to explain the project sequencing. He said the city planned ro hold a news conference to publicize the meeting. Mayor Garrett asked if the construction would remove the "dogleg" on Cimarron Boulevard. Mr. Escobar replied negatively, saying the dogleg would actually be enhanced because the road had to transition to the east at Bison Street to avoid AEP transmission lines. Mr Garcia asked if the city had any plans to extend the four -lanes of Yorktown Boulevard to the Staples Street intersection. Mr. Escobar replied that staff would definitely recommend this project for the Bond 2008 issue, if the Council chose to have one. Minutes - Regular Council Meeting May 30. 2006 - Page 12 Mr Garcia asked if the city planned to address drainage issues from Saratoga to Yorktown Boulevards. Mr Escobar replied that Phase 1 of the project would address drainage problems through Drainage Ditch 27 He said staff would bring an item for Council consideration in June to authorize the design of the ditch. In response to Mr. Scott's question, Mr. Escobar replied that the bids for the stated project came in approximately $1 million less than staff had anticipated. Mr. Scott stated that with the escalating cost of construction materials, he questioned how staff was able to find bids that were under budget, asked whether staff was sacrificing quality for low-cost work. Mr. Escobar replied that the consulting engineer did phase the work out so the contractor would have a clear idea on how to best build the project. He said the contractor took advantage of this schedule to complete the work more inexpensively Mr. Scott emphasized that the public would prefer to have a good product in the end. even if it took longer to complete City Manager Noe added that the city had benefited from having an adequate number of bidders who were motivated to do the work. There were no comments from the public. City Secretary Chapa polled the Council for their votes as follows 28.a. MOTION NO. 2006-166 Motion authorizing the City Manager or his designee to execute a construction contract with H & G Contractors of Corpus Christi, Texas in the amount of $3,774,910, subject to certification of funds, for Cimarron Boulevard Street Improvement Project - Phase 2 - from Yorktown to Bison ( Mireles ). (BOND ISSUE 2004) The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison. Marez Noyola, and Scott, voting "Aye"; Cooper was absent. 28.b MOTION NO. 2006-167 Motion authorizing the City Manager or his designee to execute a Construction Materials Testing Contract with Rock Engineering & Testing Laboratory, Inc. in the amount of $32,639 for the Cimarron Boulevard Street Improvement Project Phase 2 - from Yorktown to Bison Mireles). (BOND ISSUE 2004) The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly. Kinnison, Marez. Noyola, and Scott, voting "Aye"; Cooper was absent. Mayor Garrett opened discussion on Item 29 regarding a number of tax abatement agreements. Director of Economic Development Irma Caballero explained that the city received three applications for tax abatements. She said the first application was from Ullah Investments, Inc., submitted on August 8, 2005, for the construction of a La Quinta Inn & Suites located on McKenzie Road and 1-37. She said the project qualified under the Renewal Communities program guidelines. thus, the project was required to meet job creation requirements. Ms. Caballero stated that abatement policy allowed for 100 percent abatement for no more than two years during the construction period. and 75 percent for the following two years. Ms. Caballero reported that the second application was from Shutters Management Ltd., submitted on May 24, 2006. to convert the Shutters Building on 602 Winnebago Street into high-end loft condominium facility. She said the estimated added value to the property was between $11.5 million to $12 million Under the new Central Business District guidelines, she said there were no ob creation requirements for this project She said the abatement would be for 100 percent for the Minutes - Regular Council Meeting May 30, 2006 - Page 13 two years of construction and 100 percent for the five years thereafter. Ms Caballero reported that the third application was submitted by the Nueces Loft Apartments, L.P. on May 22, 2006 for the adaptive re -use of a historic downtown building into 66 rental apartments (lofts, one and two bedroom units). She said construction would start in September 2006 and end :n September 2007. She said this project qualified under the Renewal Communities program guidelines. She said the tax abatement would be 100 percent for up to two years of construction, and 00 percent for the five years thereafter. Mr Marez spoke in support of the residential projects proposed for the downtown area. He !ked that the city did not nave to worry about the job creation requirements for these types of projects He thanked Ms. Caballero and staff for encouraging more development in the downtown area. Mr Kelly noted that the Ullah Investments project was approaching completion. He asked now the two-year construction abatement applied to this project. Ms. Caballero replied that the project was estimated for completion next month; however, the application was submitted in August 2005, and this would become the base year for the property value. Mr Kinnison stated that he did not support tax abatements for residential developments that passed on the abatements to the individuals who purchased units, especially when those abatements didn't make or break the project. Mr Scott replied that the Council and the community were committed to stimulating growth in the downtown area, citing the new arena, baseball stadium, and storm water improvement in the area. He felt the current tax abatement program would help stimulate growth in the downtown area. Mr Garcia disagreed with Mr. Kinnison's comments regarding residential project tax abatements. He felt anyone who was investing in the downtown area should utilize any and all residential or commercial property abatements available. He said he would look upon tax abatements favorably until the city reached a plateau of the return on investments. He thanked Ms. Caballero and staff for the; efforts There were no comments from the public. City Secretary Chapa polled the Council for their votes as follows: 29.a. RESOLUTION NO. 026808 Resolution authorizing the execution of an agreement with Ullah Investments, Inc. providing for temporary property tax abatement. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney. Garcia, Kelly, Marez, Noyola, and Scott, voting "Aye"; Kinnison voting "No"; Cooper was absent 29.b RESOLUTION NO. 026809 Minutes - Regular Councr Meeting May 30. 2006 - Page 14 Resolution authorizing the execution of an agreement with Shutters Management, Ltd. providing for temporary property tax abatement. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly, Marez. Noyola, and Scott, voting "Aye"; Kinnison voting "No"; Cooper was absent. 29.c RESOLUTION NO 026810 Resolution authorizing the execution of an agreement with Nueces Loft Apartments providing for temporary property tax abatement. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney. Garcia, Kelly, Kinnison. Marez. Noyola, and Scott, voting "Aye"; Cooper was absent Mayor Garrett opened discussion on Item 30 related to the Marina's new live aboard policy. Mr. Scott asked City Secretary Chapa to provide him with the minutes from the June 22, 1999 Council meeting in which the live aboard policy was discussed. He wanted to remind the current Council members who voted against the policy in 1999 that he voted in favor of the policy six years ago Marina Superintendent Peter Davidson reported that until recently, the Marina had not been able to support live boards due to lack of facilities, infrastructure, and rules and regulations. He said the Marina had recently installed three sets of modern bathrooms, showers, and laundry facilities at each of the land masses. in addition, the city planned to construct 158 new boat slips with built-in sewage treatment. Mr. Davidson stated that staff felt that 10 percent, or two to four boats, of each pier or dock would be able to support live boards. He emphasized that the Marina was a true asset to the downtown redevelopment drive There were no comments from the public. City Secretary Chapa polled the Council for their votes as follows: 30.a. FIRST READING ORDINANCE Amending the Corpus Christi City Code of Ordinances, Chapter 12 - Boats, Bays and Waterways, Article III - Marina, Section 12-46 - Prohibition against living aboard water craft, oy changing "Prohibition against" to "Policy regulating" and directing Marina Superintendent to adopt a live aboard policy and limiting the prohibition to "Except as authorized by the Policy": providing for penalties under Section 1-6, City Code of Ordinances. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was abser 30.b. RESOLUTION NO. 026811 Minutes - Regular Council Meeting May 30. 2006 - Page 15 Resolution authorizing new Parks and Recreation Slip Rental Fees for live aboards at the City Marina under revised Section 12-46, Code of Ordinances; providing for effective date. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent Mayor Garrett referred to Item 31, a special budget presentation reviewing the proposed FY 2006-2007 Operating Budget. City Manager Noe explained that today's presentation was a broad summary of the FY 2006-2007 budget components. He said subsequent to this week, staff would schedule specific funds for detailed reviews. Assistant City Manager Oscar Martinez stated that today's broad review would cover the budget process, the budget document, and provide a budget overview. Regarding the budget preparation process, Mr. Martinez stated that the Council directed staff in January 2006 to incorporate the following considerations in the budget process: maintain effective tax rate; enhance public safety services and street maintenance; no reduction in other services; and any amount in the Unreserved Fund Balance in excess of the 10 percent goal may be recommended for one time expenditures. Mr Martinez explained the process staff used to prepare the budget, including the following components: clear identification of available resources; departmental expertise; goal to maintain current level of service; consideration of existing contractual commitments; consideration of volatile cost of fuel/electricity; consideration of least critical costs and expanded level of service requests prepared by departments; conformance with city policies and procedures; and inclusion of balanced scorecard Mr. Martinez also briefly reviewed the FY 2006-07 budget document format. Mr Martinez provided an overview of the FY 2006-07 budget. He reviewed graphs depicting the combined fund summary for revenues and expenditures by fund. He noted that staff excluded the cost of natural gas in the graphs because the volatility of the market skewed the city's true operating costs. Regarding salary aajustments, Mr. Martinez stated that the budget included a three percent, merit -based increase for civilian staff effective March 1, 2007. In addition, he said a three percent ncrease for Police and Fire sworn personnel effective August 1, 2006 in anticipation of the ongoing collective bargaining negotiations. Mr Martinez covered the estimated health insurance increases for FY 2006-07 as follows: Citicare — 0 percent; Fire - 10 percent; and Police — 0 percent. He said staff used an actuarial analysis to determine the increases, but also evaluated the current status of the risk management fund to minimize the increases where possible. Mr Martinez reviewed a chart depicting the projected fund balance for each of the major fund categories (General fund, Enterprise fund, Internal Service funds, Debt Service funds, and Special Revenue funds). He said staff tried to match revenues to expenditures, and maintain the projected fund balance whenever possible. Mr Martinez referred to a bar graph illustrating the history of the General fund unreserved fund balance. He said the 2005 fund balance was approximately $17,613,398; the 2006 fund balance was estimated at $19 million at year's end. Mr Martinez displayed a graph depicting a history of the city's net taxable values. He said the city was currently enjoying a high-growth trend with appraised values at $11.34 billion, an Minutes - Regular Council Meeting May 30. 2006 - Page 16 increase of 8.2 percent over the prior year. He cautioned, however, that property tax and sales tax revenues comprised over 50 percent of General fund revenues, so the city needed to monitor trends carefully. He also said the city would not be able to take advantage of the increased appraised values because by adopting the effective tax rate, the city could earn revenues only from new growth. not from increased appraised property values. Mr Martinez reviewed a chart illustrating the historical tax rate from 1996 to 2006 -;estimated) The current General fund tax rate was slightly over 40 percent, equivalent to 1993 tax rate levels Mr Martinez briefly discussed the tax rate split for the FY 2006-07 budget as proposed. The General Fund O&M rate was estimated to decrease from $.4266 to $.4082; the debt service tax rate of $.1991 would remain the same. The total tax rate would decrease from $.6257 to $.6073. City Manager Noe emphasized that staff estimated the tax rate with information from the Nueces County Tax Appraisal District. If the information changed, then the tax rate would change. Mr Martinez reviewed a bar graph depicting the percent change in sales tax collections from 1992 to 2006. Mr. Noyola asked Mr. Martinez to check if the 2006 collections included revenue generated by the bowlers. in response to Mr. Garcia's question, Mr. Martinez stated that the school finance reform bill would have a minimal effect on the General Fund. in conclusion, Mr. Martinez covered the budget calendar as follows: June 6 - General Fund oudget discussion. June 13 -• Enterprise fund budget discussion; June 27 - Special Revenue/Internal Services/Debt Service funds; July 11 - public hearing; July 18 - first reading; and July 25 - second reading and adoption He thanked budget and finance staff for their help in compiling the budget document. Mr Scott stated that as the city went through the budget process, he emphasized the need to stimulate economic growth. Since the city was going to receive additional revenues from the bowlers convention. he emphasized the need to invest the funds well. He said the city was doing well, but compared to the rest of the State, it was not growing at the same rate. Mr. Scott suggested using a portion of the funds to increase the CVB's marketing budget to promote tourism. City Manager Noe replied that the city may find that the Hotel Motel tax revenues were higher than estimated and then could provide a one-time allocation to the CVB. Mr Scott noted that the budget included reductions to the beach cleaning budget, and he wanted staff to explain this later He also asked staff to provide a "cheat sheet" explaining what it meant to increase the tax rate by 1 percent; to increase the valuation rate by 1 percent; and to increase the sales tax rate by 1 percent Mr Noyola spoke in support of providing three -percent employee salary raises across the board, not based on mere. He was also in favor of giving the CVB more funding for tourism marketing. Finally, he asked if the city could maintain the current utility rates without affecting the Capital Improvement Program. He said the city had increased utility rates by three to five percent per year recently. City Manager Noe replied that staff could provide information on the impact of today's decisions on the long-term rates so Mr. Noyola could decide for himself. Mayor Garrett called for a brief recess to present a proclamation. Minutes - Regular Council Meeting May 30. 2006 - Page 17 The Council returned from recess. Mayor Garrett called for petitions from the audience. Ms. Susan Thiem spoke against the alleged forced resignation of Ms. Cherrie Stunz, the former Animal Care services director. Mr J.E. O'Brien, 4- 30 Pompano, asked the Council to consider reinstating the city's internal auditor position. Mayor Garrett announced the executive sessions, which were listed on the agenda as follows 32. Executive session under Texas Government Code Section 551.072, deliberations about real property and Section 551.087, deliberations regarding economic development negotiations, as it relates to Coliseum Redevelopment, with possible discussion and action in open session 33. Executive session ;ander Texas Government Code Section 551.071 for private consultation with its attorney regarding potential claims related to the construction of the American Bank Center Arena, with possible discussion and action in open session. The Council went into executive session. The Council returned from executive session. Mayor Garrett called for the City Manager's report. City Manager Noe reported that the city's public libraries were offering a summer reading program beginning at 11 00 a.m. today. He also announced that the Texas City Managers Association conference was being held in Corpus Christi from June 1-4 at the Omni Marina Hotel. Mr Noe reported tnat beginning on May 31, the city would begin the outreach and review process for the Unified Development Code. The Planning Commission would review the draft on May 31 and the Council would review the draft on June 6. Subsequently, he said the public would have 45 days to comment on the draft. Mr Noe reported that the following items were scheduled for consideration next Tuesday as follows General Fund budget review and the new gas contract. On June 13, the Council would consider the Enterprise fund budget and recommendations from J. Quad Associates regarding the Model Block Program. Mayor Garrett re -opened the public comment period. Ms. Delphia White, 6202 Hartock Circle, spoke regarding a loose dog that was threatening to bite her in her neighborhood. Council Member Noyola stated that Ms. White had contacted him and various city departments regarding her problem to no avail Cry Manager Noe replied that staff could send a Directed Patrol Officer to the talk to the dog owner. He said the city could only cite the dog owner when the dog was caught. Mr. Scott added that the city could also impound the dog once it was caught. Mayor Garrett said the city would continue to work with her Mayor Garrett called for Council concerns and reports. Mr. Chesney stated that there had peen talk about restructuring the CVB Board, and he asked for an update. City Manager Noe Minutes - Regular Councii Meeting May 30 2006 - Page 18 replied that the CVB contract had expired, and staff had discussed the potential of reorganizing the board into a smaller group i 11 members) with different categories (four members from industry and seven members at large). He said a recruitment effort was taking place to assemble nominees. Staff would bring the contract to the Council within the next two to three weeks. Mr Chesney asked staff to include the internal auditor position in the proposed budget for consideration. City Manager Noe replied that staff would provide information on the costs for an nternal auditor in the budget presentation. Mr. Chesney also reported that Dr. Minz was experiencing an ongoing problem with cutoff valves at his residence. He asked Mr. Noe to look into Mr Noyola stated that constituents had contacted him about the city's holiday trash pickup schedule. He said residents on a Monday/Thursday pickup schedule only had trash pickup once in a week when a holiday fell on a Monday. He asked if those residents were prorated for the reduced service City Manager Noe replied that the city only had seven designated holidays, and not all of the holidays fell on Mondays. He said no one could be impacted seven times a year by the holiday schedule, but more like three or four times a year at the maximum. He said the city did not prorate the bills because the total amount of trash that residents put out was the same, whether it was once or twice a week City Manager Noe said the other option was to pay overtime and not offer employees the holiday time. Mr. Noyola did not want the city to pay overtime, but asked Mr. Noe to ook into offering a discount those weeks when residents did not have trash pickup twice a week. Mayor Garrett recessed the regular Council meeting to hold the Tax Reinvestment Zone No. 2 and North Padre Island Development Corporation meetings. The Council returned from recess. Mayor Garrett opened discussion on Item 25 regarding a bond issuance by the North Padre Island Development Corporation. Director of Financial Services Cindy O'Brien reported that the Council must ratify the NPID Board's resolution to issue $2.9 million .n bonds for Padre Island. There were no comments from the public. City Secretary Chapa polled the Council for their votes as follows: 25. RESOLUTION NO 026805 Resolution approving the resolution by the North Padre Island Development Corporation authorizing the issuance of Series 2006 Bonds in an aggregate principal amount not to exceed $2.9 Millior The foregoing resolution was passed and approved with the following vote: Garrett, Chesney, Garcia, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Kelly abstained; Cooper was absent There being no further business to come before the Council, Mayor Garrett adjourned the Council meeting at 1:50 p.m. on May 30. 2006.