HomeMy WebLinkAboutMinutes City Council - 06/13/2006HEREBY CERT1FY tha. the foregoin_, is a true and correct copy of the minutes of the Regular
Vleetim> (lithe Corpas C h-isti (itv Council of June 1-;. 2006. which were approved by the City
Counci I June 27 2(+)6
ITN ESSE-TH M `' HAyI) AyE) SEAL. on this the 27' day of June, 2006.
V
1
Armando Chapa
City Secretary
SEAL
MINUTES
CIT`r OF CORPUS CHRISTI, TEXAS
Regular Council Meeting
June 13, 2006 - 10:00 a.m.
PRESENT
Mayor Henry Garrett
Mayor Pro Tem John Marez
Council Members:
Brent Chesney
Melody Cooper
Jerry Garcia
Bill Kelly
Rex Kinnison
Jesse Noyola
Mark Scott
Mayor Garrett called the meeting to order
City Staff:
City Manager George K. Noe
City Attorney Mary Kay Fischer
City Secretary Armando Chapa
n the Council Chambers of City Hall.
The invocation was delivered by Deacon Michael Mantz of the Corpus Christi Cathedral and
the Pledge of Allegiance to the United States flag was led by Council Member Cooper.
Mayor Garrett referred to Item 1 and the following board appointments were made:
Civil Service Board/Commission
Jose Moncada (Reappointed)
Commission on Children & Youth
Mary Jane Garza (Appointed)
Food Service Advisory Committee
D.W. Haven (Reappointed)
Michael A. Garcia (Appointed)
Mayor Garrett called for consideration of the consent agenda (Items 2-10). Mr. Abel Alonzo
and Mr Andrew DuArte requested that Item 7 be pulled for individual consideration. A motion was
made and passed to approve Items 2 through 10. constituting the consent agenda, except for Item
7, which was pulled for individual consideration. City Secretary Chapa polled the Council for their
votes as 'ollows
2. MOTION NO. 2006-172
Motion approving a supply agreement with Mueller Company, of Decatur, Illinois, for fire
nydrants in accordance with Bid Invitation No. BI -0142-06 based on low bid for an estimated
annuai expenditure of $70,216.24 of which $11,702.70 is budgeted in FY 2005-2006. The
term of the contract will 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 are available from Warehouse Inventory for FY 2005-2006 and requested
for FY 2006-2007
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 Counc: Meetinq.q
June 13. 2006 - Page 2
MOTION NO. 2006-173
Motion approving the purchase of one (1) Backhoe and one (1) Utility Tractor from the
folslowing companies for the following amounts in accordance with Bid Invitation No. BI -0139-
J6, based on low bid and low bid meeting specifications for a total amount of $93,842.28.
The vehicles are purchased for the Wastewater Department. All vehicles are replacement
ants. Funds are available in Capital Outlay Budget of the Maintenance Services Fund.
Anderson Machinery Co
Corpus Christi, TX
Backhoe
355,993.28
Grand Total: $93,842.28
Nueces Power Equipment
Corpus Christi, TX
Utility Tractor
$37.849
The foregoing mot>on was passed and approved with the following vote: Garrett, Chesney,
Cooper, Garcia, Kelly, Kinnison Marez, Noyola, and Scott, voting "Aye".
MOTION NO. 2006-174
Motion approving supply agreements for automotive repair parts in accordance with Bid
nvitation No BI -0090-06, with the following companies for the following amounts. Awards
are based on low bid for an estimated annual expenditure of $118,150 of which $19,691.66
s budgeted in FY 2005-2006. The term of the agreement shall be for twelve months with an
option to extend fa' up to two additional twelve month periods, subject to the approval of the
suppliers and the City Manager or his designee. Funds have been budgeted by
Maintenance Sery ces in FY 2005-2006 and requested for FY 2006-2007.
Coastal Dist Co., nc.
Corpus Christi. TX
Group 1
323.500
Arnold Oil Company, Inc.
Corpus Christi, TX
Groups 5, 6, 8. 1013, 19
336,500
arquest Auto Parts
Corpus Christi, TX
Groups 2 and 7
318,900
O'Reilly Auto Parts
Corpus Christi, TX
Group 17
$3,800
Grand Total: $118,150
Access Ford
Corpus Christi, TX
Groups 3, 4, 9, 14-16, 18
$35,450
The foregoing mot on was passed and approved with the following vote: Garrett, Chesney,
Cooper. Garcia. Kelly, Kinnison Marez, Noyola, and Scott. voting "Aye".
5.a. RESOLUTION NG. 026824
Resolution authorizing the City Manager or his designee to accept a grant of $53,750 and to
execute a contrac* and all related documents with the Texas State Library and Archives
Commission for the purchase of 43 public access computers for the Central Library and
branches.
The foregoing resolution was passed and approved with the following vote: Garrett,
Chesney, Cooper Garcia, Kelly Kinnison Marez. Noyola, and Scott, voting "Aye".
Minutes - Regular Councn Meeting
June 13, 2006 - Page 3
5.b. ORDINANCE NO. 026825
Ordinance appropriating $53,750 and interest up to $1,000 from the Texas State Library and
Archives Commission into the No. 1068 Library Grants Fund for the purchase of 43 public
access computers for the Centra! Library and branches.
An emergency was declared, and the foregoing ordinance was passed and approved with
:he following vote. Garrett. Chesney, Cooper. Garcia, Kelly, Kinnison, Marez, Noyola, and
Scott, voting "Aye
RESOLUTION NC. 026826
Resolution authorizing the City Manager or his designee to execute an agreement with the
Texas Transportation Commission for construction, maintenance and operation of a
3ontinuous highway lighting system on S. H, 358 (South Padre Island Drive) between
Staples Street anc S. H. 286 (Crosstown Expressway).
The foregoing resolution was passed and approved with the following vote: Garrett,
Chesney, Cooper Garcia. Kelly. Kinnison, Marez, Noyola, and Scott, voting "Aye".
8. MOTION NO. 2006-175
Motion authorizing the City Manager or his designee to execute Change Order No. 6 with
CCC Universal Constructors LLC, of San Antonio, Texas in the amount of $357,870 for the
Seawall Reconstruction Project Contract D Coopers Alley to Holiday Inn (McGee Beach
Reach)
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Cooper; Garcia, Kelly, Kinnison Marez, Noyola, and Scott. voting "Aye".
9. MOTION NO. 2006-176
Motion authorizing the City Manager to execute a Deferment Agreement with C.C.T.
Navigation -Cameron, LP. (Developer), in the amount of $347,983.14 for public
improvements including installation of an off-site 15 -inch sanitary sewer collection line on the
north side of Bates Drive and an off-site 12 -inch water grid main on the east side of
Navigation Boulevard for Navigation Pointe, Block 1, Lot 1, located south of Bates Drive and
west of Navigation Boulevard, in accordance with the Platting Ordinance Section V -Required
improvements Subsection A.3(b) contingent upon receipt of letter of credit compliant with
C ty requirements
Tne foregoing :motion was passed and approved with the following vote: Garrett, Chesney,
Cooper, Garcia, Kelly. Kinnison Marez. Noyola, and Scott, voting "Aye".
10 ORDINANCE NO 026828
Amending the :,ode of Ordinances, City of Corpus Christi, Chapter 55, regarding definition
Pt local exchange access line and 9-1-1 service fees; providing for penalties. (First Reading
36/06/06)
The foregoing ordinance was passed and approved on its second reading with the following
vote: Garrett, Chesney, Cooper Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting
"Aye"
Minutes - Regular Councn Meeting
June 13. 2006 - Page 4
Mayor Garrett opened discussion on Item 7 regarding the North Port Avenue from IH -37 to
US 181 project. Mr. Abel Alonzo, 1701 Thames, thanked City Engineer Angel Escobar and staff for
coordinating this project, and said he hoped to see the city come closer to reaching ADA compliance
for this project and citywide in the near future. Mr. Andrew DuArte, 1203 Van Loan, requested that
the city Install a traffic light at the corner of Port Avenue and Winnebago Streets because of heavy
traffic after Corpus Christi -looks games City Secretary Chapa polled the Council for their votes as
follows
RESOLUTION NC. 02682'
Resolution authorizing the City Manager or his designee to execute an Advanced Funding
Agreement with the Texas Department of Transportation (TXDOT) in the amount of
$' 53,000 for the North Port Avenue from IH 37 to US 181 (BOND ISSUE 2004)
The foregoing resolution 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, a presentation on Packery Channel. City Manager Noe
introduced Col. Steven P Haustein with the U.S. Army Corps of Engineers (COE) to provide an
update or Packery Channel as well as a number of other projects affecting the area.
Regarding the Packery Channel project, Col. Haustein reported that the U.S. Congress had
provided $1.5 million in supplemental funding for hurricane damage from last season. Along with
the city's cost share, he said this funding would provide the final increment for the project.
Consequently, the project should oe completed in the near future. Upon completion, the project
would provide a 140 ft. wice by 12 ft deep channel, and help restore the salinity levels in the Laguna
Madre He thanked the contractor, the city (particularly Mr. Tom Utter), and Sen. Kay Bailey
Hutchison for their partnership the completing the project. He asked the city to recognize Sen.
Hutchison and all the leaders in Congress for their efforts by inviting them to a ribbon cutting
ceremon'
Cor Haustein aiscussed the Corps of Engineers Civil Works FY 2007 budget. Regarding the
Corpus Christi Ship Channel project, he said the President's budget included $7 million in funding,
and the House of Representatives matched the President's budget. He said the Senate will
consider the funding, and any difference between the two numbers would be discussed in
conference committee He noted that the House had budgeted $500,000 in the 2007 budget for the
Packery Channel project. even though it was expected to be completed by this year.
Coi. Haustein saic the Corpus Christi Ship Channel was the sixth largest port in the nation.
He said the COE wanted To widen and deepen the ship channel from 45 feet to 52 feet by 530 feet
wide to provide a safety measure or barges. He said this project was not authorized in the Water
Resources Development Act yet, but staff expected the project to be authorized this year. Until the
project was authorized, }e said staff could not proceed with construction, so no funds were
budgeted In 2007.
Haustein reported on the Gulf Intercoastal Waterway, a 120 ft. X 12 ft. channel
stretching 1,100 miles between Brownsville and Florida. He said the President requested $33.2
million for maintenance or the waterway and the House matched the number in their budget.
Coi. Haustein discussed the status of the Water Resources Development Act, which was
Minutes Regular Counci Meeting
June 13, 2006 --- Page 5
Congress s vehicle or auThorizing federal civil works projects. He said the latest intelligence he
received indicated that the bill had been hotlined, and would go to a full floor vote on or about July 4.
He said he was cautiously optimistic that the bill would actually be considered.
Co! Haustein said last week, he signed the Record of Decision for Exxon Mobile's Vista del
Sol Liquid Natural Gas (LNG) plant, providing the permit needed to proceed with construction. He
said LNG was the wave of the future for the nation's energy needs He said the Vista del Sol LNG
permit was the fifth permit he had signed for the State of Texas.
finally. Col Haustein discussed the LaQuinta Channel extension, noting that it was part of
the Corpus Christi Ship Channel, although it was geographically separated. He said the Port of
Corpus Christ had a customer wishing to build at the end of LaQuinta Channel in 2008. Since
Congress had not passed a Water Resources Development Act bill, he said the Corps of Engineers
could not construct The project by 2008 Subsequently, he said the Port opted to build the project
themselves, using a Corps permit. He said the extension would provide a 39 foot channel depth,
and extend the channel b,: 1.5 miles.
Mr- Scot thanked the Corps of Engineers for their efforts to make the Packery Channel
project a reality.
Mayor Garrett referred to Item 11, and a motion was made, seconded, and passed to open
the public hearing on the 1Y 2006-2007 Budget adopted by the Corpus Christi Crime Control and
Prevention District Board of Directors
Acting Police Chief K.A. Bung stated that the FY 2006-2007 proposed budget was
$4,756.050, representing a three percent increase in personnel costs, 10 percent in group
insurance, and eight percent in self-insurance. He said staff projected total revenues of $4,685,496,
which would fund ail the Crime Control District's core programs. The projected ending balance was
$2,007 843, with a projected deficit of $70,555
Mr. Scott stated that the budget was based on 3.5 percent increase in sales tax revenue. He
asked if the sales tax revenues ended up being 5 percent, then what impact the additional revenues
would nave on the deficit. City Manager Noe replied that any additional revenues became a surplus
in the fund. He said at some point if the base tax became larger, then the Board and the Council
could consider adding in programs that were deleted in the past. He stated that continuing the
current programs was possible with the current revenue stream.
Mr. Kinnison asked about a line item for group insurance in the Pawn Shop Detail budget
that was added this year He asked ,f This item was paid for out of the General Fund last year.
Assistant Director of Management and Budget Eddie Houlihan stated that the city does not start
charging for group insurance until a year later when the census was received. City Manager Noe
added that when the city added new positions to the budget, there was a year lapse on group health.
Mr Kinnison asked how much the city budgeted for election costs. City Secretary Chapa
replied that the city was budgeting approximately $120,000. Mr. Kinnison asked if the city decided
to hold the Crime Control District election in conjunction with the City Council elections, then how
would the costs be div!dec. City Secretary Chapa replied that he hoped the costs would be split in
half, but noted that the city would not Know the exact costs until they negotiated a contract with the
county He said the contract wou'd probably be negotiated in July or August.
Mayor Garrett asked for public comment Mr Abel Alonzo. 1701 Thames, asked fora status
Minutes - Regular Counc ! Meeting
June 1?, 2006 - Page 6
report on the Juvenile Assessment Center Commander Bryan Smith provided a brief status report,
saying the recidivism rate Tor the program was between four and seven percent, well below any jail
+n the United States Mr. Andrew DuArte 1203 Van Loan, spoke in support of the Crime Control
District especially the Directed Patrol Officers and the Police Athletic League. Mr. Scott made a
motion to close the public hearing seconded by Mr. Garcia, and passed.
Mayor Garrett referred to Item 12 and a motion was made. seconded, and passed to open
the public hearing the following item:
12.a. Public hearing tor the proposed renaming of Winnebago Street between Carancahua Street
and Upper Broadway to Uptowr Avenue
CityEngineer Angel Escobar explained that the 600 block of Winnebago Street was a 36 -
foot wide street connecting Carancahua Street and Upper Broadway. He said the Shutters Venture
LLC, represented by Mr. Joe Adame. owned the property on both sides of the street. He said
Knuckleheads restaurant was the other tenant sharing frontage on this portion of the street.
Mr Escobar said staff sent out a survey to the affected property owners and tenants, who
were 100 percent in favor of the name change. in addition, he said Traffic Engineering requested
comments from the Jtilities Office Manager, Director of Development Services, Director of
Engineering Services, Fire Chief, Police Chief, U.S. Postmaster, Landmark Commission, Nueces
County Historical Commission. and the Nueces County Historical Society. He noted that the
Landmark Commission and the Nueces County Historical Society were opposed to the proposed re-
naming because Winnebago was named in honor of an American Indian tribe. In addition, they
were concerned that when the Harbor Bridge was relocated on the north side of IH -37, the
remaining portion of Winnebago Street, extending from Port Avenue to the JFK frontage road, could
disappear Mr. Escobar stated that the implementation cost for the street name change, if approved,
was approximately S125 to be paid by The applicant.
r response to Mayor Garretts question. Mr. Escobar replied that several blocks of
Winnebago Street would still exist north of IH -37 if the street renaming request was approved.
Mr. Marez asked questions about the street re -naming process. He understood that after a
recent policy change, the city has made it a practice to limit the number of street name changes
except for significant reasons. He mentioned the recognition of Whataburger in the Parkdale area
as one of several examples. He asked Mr. Adame how important the street name change was to
the success of his development. Mr. Joe Adame, 1818 Graham, replied that he felt it was confusing
that 95 percent of Winnebago Street was on the north side of IH -37; only 300 feet were on the south
side. He said his plans were to convert a vacant office building into loft condominiums, and a street
name change would help market The project. He said the name change would not make or break
The project, but it could certainly benefit the project. Mr. Marez stated that while he supported
residential development n the downtown area_ he felt it was important to be consistent when
considering a street name change
Mr. Kelly spoke it support of the street name change because he felt it would clarify any
confusion because the 600 block of Winnebago was a mile south of the actual arterial north of IH -
37. He said the south portion in question did not seem to have any connectivity or relationship with
what most people consicered to be Winnebago Street. He also noted that 100 percent of the
property owners were in favor of the name change Thus, he felt the Council would be consistent if
they chose to approve the street name change.
Minutes - Regular Counc Meeting
June 13, 2006 - Page
Mayor Garrett called for public comment. The following individuals spoke against the
proposed street name change because they wanted to preserve the street's historical value: Mr.
Joel Mumphord, 20'1 Palm Drive, representing the NAACP: Mr. Andrew DuArte, 1203 Van Loan;
and Ms Vicki Herlihy representing the Gulf Coast Indian Confederation.
M, Chesney expressed concern that the city was setting a bad precedent by approving the
proposed street name change. He did not think that changing the street name to benefit a particular
development reflected the intent of the city's street name change policy, which emphasized that
street renaming should only be approved for compelling reasons. He said the Council might
consider ichanging the policy if they chose to approve this request
Mr. Noyola asked if the Harbor Bridge relocation was going to eliminate the north side of
Winnebago Street. Mr. Escobar replied that the new location of the Harbor Bridge would be
elevated over Winnebago Street. He said the north side of the street would not be eliminated by the
bridge relocation because it served as a connector to Port Avenue. Conversely, he said the Harbor
Bridge relocation would not connect the north and south sides of Winnebago Street. Mr. Noyola
expressed concern about hanging the street name because of its historical value. He said he liked
the proposed development. but noted that Mr. Adame had stated that the street name change was
not essential to the project success.
Mr. Noyola asked now many property owners were on the 600 block of Winnebago Street.
Mr. Escobar replied that the 600 block of Winnebago Street had two property owners. Mr. Noyola
felt that the two property owners should not be able to change history by renaming the street just
because they had the financiai means tc buy all the property on the block.
Mr. Marez stated that he considered the 600 block of Winnebago Street to be part of the
downtown area, not the neighborhood He agreed with Mr. Kelly's argument that renaming the
street would clarify the confusion created by the separation of the north and south sides of street.
Since the south portion: was only 300 feet long, he did not feel it would harm the neighborhood. He
spoke n support of making the proposed development a success by approving the request.
n response to Mr Garcia's question, City Manager Noe said a city ordinance dictated the
process and what qualified for a street name change. Mr. Garcia expressed concern that the city
was setting a bad precedent by approving the street name change, and he also was concerned
about preserving the historicai value of the street name
Mr. Scott spoke support of maintaining the existing street name change policy and
procedures, He also said that being of Native American descent, he was not opposed to changing
the street name as requested
Ms Cooper spoke in support of approving the proposed street name change to prevent
confusior
Mr, Kelly asked Acting Police Chief Bung and Acting Fire Chief Hooks if the division of
Winnebago Street had negatively affected the response time for emergency personnel. Chief Bung
and Chief Hooks replied negatively. saying it was not a major issue.
Mr. O.K. Smith 3409 Jersey, suggested that the property owner try to compromise with the
community by incorporating the history of the street into his project. He suggested naming the
development after an 'ndian tribe or painting a mural honoring the tribe.
A discussion resumed on whether the Harbor Bridge relocation would in fact connect the
north side of Winnebago Street to the 600 block (south side ) of Winnebago Street. City Manager
Minutes - Regular Counc Meeting
June 12. 2006 -- Page 8
Noe replied that it was highly unlikely that the north and south side of Winnebago Street would be
reconnected because Winnebago Street dead ended at Upper Broadway. He said it did not make
sense to reconnect the street if it wound not lead anywhere.
A motion was made, seconded and passed to close the public hearing. City Secretary
Chapa boiled the Council for their votes as follows:
12.b. FIRST READING ORDINANCE
Changing the name of Wirnebago Street to Uptown Avenue between Carancahua Street
and Upper Broadway.
The foregoing ordinance was passed and approved on its first reading with the following
vote: Garrett, Cooper, Kelly, Kinnison, Marez, and Scott, voting "Aye"; Chesney, Garcia, and
Noyola, voting 'Nc
Mayor Garrett opened discussion on Item 13 regarding the FY 2006-2007 Model Block
Program. Assistant City Manager Margie Rose stated that last month, staff had informed the
Council that J -Quad & Associates, LLC would be evaluating three candidate neighborhoods for the
Model Block Program as follows: Neighborhood Initiative Program - NIP Pilot area (Crosstown
Expressway/Gollihar Road/Greenwood Drive/Horne Road); NIP Area #1 (Crosstown
Expressway/Agnes Street/ S. Staples Street/ Morgan Avenue); and NIP Area #6 (Agnes
Street/Baldwin Blvd / Highland Avenue Port Avenue). She introduced Director of Neighborhood
Services Yvonne Haag, who briefly described each of the neighborhoods.
Ms. Haag then introduced Mr. Doug Frederick with J -Quad and Associates, who presented
the results of the needs assessment studies conducted in the three candidate neighborhoods. He
said the results included a detailed profile for each of the three neighborhoods consisting of general
demographics, census information housing conditions, public facility and infrastructure conditions, a
fair housing index. specific issues, and recommendations for neighborhood improvements and
potential revitalization pro ects
Mr Frederick provided statistics on the NIP Pilot area. He said the area's population was
3,238, comprised of 967 louseholds He said the median household income was $26,877; the
poverty rate was 15.7 percent He said 75.5 percent of the homes in the area were owner -occupied;
5.4 percent of the homes were vacant. The median housing value was $38,600. He said that 42.8
percent of the households were considered cost -burdened, meaning that they spent more than 30
percent of their income on housing. He referred to several graphs depicting the age of the housing
(mostly from the 1950s) and housing conditions (over 50 percent needing standard repairs). He
also discussed the results of a Focus Group session held on March 29, 2006, saying the attendees
were passionate about preserving their neighborhood. In conclusion, Mr. Frederick made the
following neighborhood improvement recommendations for the NIP Pilot area: sidewalk repair; infill
housing; housing rehabilitation parks amenities; intensified city services; and youth activities.
Mr Frederick pro\ided statistics on NIP Area No. 1. He said the area's population was
2,659, comprised of 774 households. The median household income was $16,701, with a poverty
rate of 35 7 percent He said 31.6 percent of the homes were owner -occupied; 12.9 percent of the
homes were vacant The medlar housing value was $28,750. He said that 67.4 percent of the
households were conside- ed cost burdened. He referred to several graphs illustrating the age of the
housing •:over 20 percen from the 1930s through 1950s) and the housing conditions (over 40
percent needed minor repair). He also discussed the results of the Focus Group session held on
Minutes - Regular Counc, Meeting
June 13. 2006 - Page 9
March 27, 2006. Fina...iy, Mr. Frederick made the following neighborhood improvement
recommendations for NIP Area No 1: infill housing; housing rehabilitation; neighborhood clean-up
programs. intensified city services and buffers from non-residential uses.
Mayor Garrett announced that he planned to call for a brief recess to present proclamations.
He said the Council would hear public comments after the recess, and then resume the Model
Block Program discussior
Mayor Garrett called for a brief recess to present proclamations.
Mayor Garrett called for petitions from the audience. Ms. Norma Urban, 410 Peoples Street,
presented a resolution on behalf of the Downtown Management District Board of Directors, which
supporting the continuation of city s RFP process for the coliseum redevelopment.
Rev. Henry Williams, speaking on behalf of the Hillcrest Residents Association, requested
that the city install a traffic light at the corner of Port Avenue and Winnebago Street. He also
distributed information to the Council on behalf of an association member.
Mayor Garrett announced the executive session, which was listed on the agenda as follows:
20. Executive session under Texas Government Code Section 551.071, regarding contemplated
-itigation by Donald Beadmanwith possible discussion and action related thereto in open
session
The Council went into executive session. The Council returned from executive session and
the following motion was passed with the following vote:
20. MOTION NO. 2006-177
Motion authorizing the City Manager to settle Claim of Donald Beadman, relating to a vehicle
accident of February 28. 2006 for the sum of $130,000.00.. subject to certification of funds.
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 re -opened the discussion on Item 13 regarding the Model Block Program. Mr.
Frederick with J -Quad and Associates provided statistics on NIP Area No. 6. He said the area's
population was 3,786. comprised of 1.155 households. The median household income was
$17,165; the poverty -ate was 39.2 percent. He said 50.6 percent of the homes were owner -
occupied 11 percent of the homes were vacant. The median housing value was 437,400. He said
33.9 percent of the households were considered cost -burdened. Mr. Frederick referred to several
graphs depicting the age of the housing (primarily built in the 1970s) and the housing conditions (45
percent needed minor repairs). He discussed the results of the Focus Group session held on March
28, 2006. Finally. Mr. Frederick made the following recommendations for neighborhood
improvements' infill housing land assembly: housing rehabilitation; neighborhood clean-up
Minutes -- Regular Counc Meeting
June 1 2006 - Page 10
orograms intensified city services (especially animal control); and neighborhood retail.
Mr Frederick discussed the criteria used to base their recommendation for the Model Block
Program. He referred to a table comparing each of the neighborhoods based on the demographics
and housing condition data. Based on the criteria used, he said the team determined that the NIP
Area No. 1 neighborhood scored the weakest of the three areas because it had the most need for
assistance He noted, however, that several critena supported the selection of the NIP No. 1 as the
candidate for the Model Block Program as follows ample infill housing opportunities (100 vacant
lots); a number of recent investments (Police Athletic League and by Mr. Al Gonzalez); presence of
outside benefactor Mr Ai Gonzalez; Salvation Army site: and business interests on Agnes Street..
Mr Frederick discussed the project opportunity for NIP Area No. 1, referring to several
illustrations. The project opportunities were as follows: buffer developments and landscape
screening to strengthen residentia... areas; mixed use development on Staples Street; infill housing
opportunities; and monumental entrance iodated at the service road and Hancock Street.
Mr. Frederick discussed funding options for the project opportunity. He suggested that the
infill housing developmenn for example could be provided through a partnership with a local non-
profit organization that identifies and buys infill lots, builds housing units, and sells those units to
qualified buyers. He mentioned other options as follows: Community Development Block Grants;
HOME Investment Partnership; Section 108 Loan guarantees; Federal Home Loan Bank -
affordable housing grant; and Low -Income Housing Tax credits (scattered site lease/purchase).
n response to Mr. Kelly's question, Assistant City Manager Rose replied that infill housing
and small lot programs would still be available outside of the targeted neighborhoods through the
Neighborhood Services department.
Mr Noyola spoke n support of Tinding as many funding opportunities as possible to make
this program a reality. He spoke about the importance of helping people achieve the American
dream of homeownership
n response to Mr. Noyola's question, Ms. Rose replied that a Model Block Program project
manager would be hired to implement the project opportunities, including identifying lots appropriate
for the small lot and infill Housing programs. Mr. Noyola asked if it was possible to expedite the
foreclosure process on infill properties saying the two-year waiting period was excessive. City
Manager Noe replied that the two-year waiting period was required by statute; however, staff could
attempt to lobby the State legislature to provide for a shorter period. Mr. Noyola and Mr. Kelly also
stated that the city should try to purchase any suitable lots now before the owners found out about
the program and raised their sale prices
Mr. Noyola asked when the Model Block Program would begin. Ms. Rose replied that if the
Councii approved today's item. the program could begin in July with a public unveiling and call for
community partners She said the infill lousing aspect of the program would begin as soon as
possible
`n response to Mr Noyola s question, Ms. Rose said staff's goal was to engage as many
members of the development community and builders in the infill and small lot programs and other
affordable housing initiatives.
Mr. Noyola asked about the cost of a home that was designated as "affordable housing" in
the Model Block Program area. Ms. Rose replied the goal was to provide a price range between
$50,000 and $70,000. She said the homes would not have garages but could have carports.
Minutes - Regular Counc Meeting
June 1 3. 2006 - Page 11
Mr Kelly asked what would happen to the neighborhoods that were not chosen today, or any
other NIP neighborhoods. Ms. Haag replied that staff was currently conducting a post -assessment
survey of NIP Area No 6 Because it showed such a chronic need for services. She said all three
neighborhoods participated in the NIP Pride Program, a sustainability program.
Mr. Kelly asked how many Model Block neighborhoods the city anticipated having in one
year. Ms. Haag replied that staff hoped to focus on the proposed neighborhood as a pilot project for
two to three years before attempting another project.
Mr. Kelly asked what plans the city had to develop other areas, like the North side of the city.
Ms. Rose replied that any interested parties could contact Neighborhood Services to apply for
services citywide. Mr. Kelly said one of the complaints about applying for services was that the city
did not nave one place designated to offer affordable housing assistance.
There were no comments'rom The audience City Secretary Chapa polled the Council for
their votes as follows:
13. RESOLUTION NO. 026829
Resolution supporting the recommendation provided by City Staff and consultant, J -Quad
and Associates, for the first designated neighborhood to participate in the FY 2006-2007
Model Block Program.
The foregoing resolution 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 14 regarding the Texas Military Value Revolving
Loan Fund. Special Assistant to the City Manager Tom Utter reported that the State legislature has
authorized a Texas Military Value Revolving Loan Fund under the auspices of the Texas Military
Preparedness Commission. The program will provide low interest loans to communities that have
been adversely or positively impacted by BRAC 2005, or to a community that will carry out a project
that will enhance the military value of a military facility.
Mr. Utter said the city had two projects that were eligible under the loan fund guidelines as
follows reconstruction~ of Port Avenue from IH -37 to US 181; and the partial relocation of Flour Bluff
Drive with land acquisition to allow the runway expansion at Waldron Field. He referred to a number
of slides illustrating each project.
Mr. Utter stated that the city nad submitted a Letter of Interest to the Texas Military
Preparedness Commission. Staff was asking the Council to authorize the city to submit an
application He explained that the local share of the two projects was $10,507,390. The city would
be requesting TXDOT assistance in the amount of $10,878,300. He said the city planned to repay
the loan from the Genera Fund as well as utility systems funds. He said staff and the city's bond
counsel estimate that the interest rate on the loan funds would be up to 30 basis points below
possible city financing because of the State's bond rating.
in response to Mayor Garrett's question, Mr. Utter replied that a single residence existed just
outside the project area on Flour Bluff Drive. He said staff had not spoken with the property owner
yet about land acquisition issues
Regarding the Port Avenue project, Mayor Garrett stated that the right-of-way acquisition
necessary to widen the road could be extensive. but he felt staff could handle the issue similar to the
Minutes - Regular Counc Meeting
June 13, 2006 - Page 12
McArdle Road project. He said the project was badly needed.
M* Kinnison asked what type of interest rate was being offered for the loan program versus
what the city could obtain itself. Mr. Utter replied that the loan underwriters estimated that the loan
would have a 4.6 percent interest rate He said the State would hold a bond election, and the bond
sale was anticipated in November. He said the Council had previously approved a joint funding
agreement with TxDOT for the design. Mr Noe said the TxDOT funding would drive the timing of
the project more than the loan funds. City Engineer Escobar stated that they were committed to
approve an engineering contract by September. He said the process would take approximately 12
months because federal funding required a feasibility study and environmental study. Mr. Scott
noted that the land acquisition process would probably take approximately 12 months, coupled with
two years to construct the projects
n response to Mr. Kinnison s question, Mr. Utter stated that former Mayor Loyd Neal was the
local member of the Texas Military Preparedness Commission. There were no comments from the
Public. City Secretary Chapa polled the Council for their votes as follows:
14.a. RESOLULTION NO. 026830
Resolution authorizing the City Manager or his designee to submit a loan application to the
Texas Military Preparedness Commission for their Texas Military Value Revolving Loan
Fund in the amount of $10,507,390 for the reconstruction of Port Avenue from IH 37 to US
181 and the partial relocation of Flour Bluff Drive and land acquisition to allow expansion of
runway facilities at Waldron Field
The foregoing resolution was passed and approved with the following vote: Garrett,
Chesney. Cooper Garcia, Kelly. Kinnison. Noyola. and Scott, voting "Aye"; Marez was
absent
14.b. RESOLUTION NC 02683'
Resolution approving the Reimbursement Statement expressing the City's official intention
to reimburse the costs of projects funded through the Texas Military Value Revolving Loan
Fund.
The foregoing resolution was passed and approved with the following vote: Garrett,
Chesney. Cooper. Garcia. Kelly. Kinnison, Noyola. and Scott, voting "Aye"; Marez was
absent.
Mayor Garrett opened discussion on Item 15, a city code amendment regarding collection for
unauthorized utility usage. Director of Financial Services Cindy O'Brien stated that the current city
code provided that if utility service has been disconnected on a certain property and then the service
s turned on illegally, the record owner of the property was responsible for the usage during this
period of illegal use. She said that many times the unauthorized user was a renter, not the property
owner Ms. O'Brien said the amendment would allow the property owner to provide the Utilities
Business Office with documentation to confirm the identification of the unauthorized user, such as a
signed lease and driver's i•cense number. Upon receipt of the proper documentation, she said the
city would transfer the appropriate balance to the unauthorized user.
Mr. Scott stated that he felt the property owner should also be responsible if a tenant skipped
out on a bill, rather than the ratepayers Ms. O'Brien stated that certain rental properties have a
history of residents who do not pay their utility bills. She said the city required tenants from those
properties to make a deposit to address the issue In addition, she said some property owners put
Minutes - Regular Counci Meeting
June 1-i', 2006 - Page 13
the utility account in their names, raid the bill, and then collected from the tenants. Ms. Cooper
added that the landlord was prohibited from making inquiries regarding a tenant's utility bill by state
aw
There were io comments from the public. City Secretary Chapa polled the Council for their
votes as follows
15. FIRST READING ORDINANCE
Amending the Code of Ordinances, City of Corpus Christi, Chapter 55 regarding collection
for unauthorized utility usage
The foregoing ordinance was passed and approved on its first reading with the following
vote: Garrett, Chesney, Cooper Garcia, Kelly. Kinnison, Noyola, and Scott, voting "Aye";
Marez was absent
Mayor Garrett recessed the Council meeting to hold a Corpus Christi Community
Improvement Corporation (CCCIC) meeting.
The Council returned from recess. Mayor Garrett referred to Item 17, an overview of the
proposed FY 2006-2007 Budget for Enterprise Funds, comprised of the Water, Gas, Wastewater,
Airport, Golf, and Marina funds. Assistant City Manager Oscar Martinez explained that these funds
were financed or operates similar to private business, and were dependent primarily on user fees.
Regarding the Water fund, Mr. Martinez referred to a graph comparing the FY 05, FY 06 and
FY 07 FTEs for the Water department. In FY 200T he said three FTEs from Wastewater and one
FTE from Storm Water were being moved to the Water Utilities Support Services Group. In
addition, ne said one FTE was being moved to the Customer Call Center, and one FTE was being
moved to the Office of Management and Budget to support the Balanced Scorecard project. He
noted that the salaries budgeted were $11,714,993, while the required funding amount was $12
million leaving an unfunded salaries amount of $319,900 (or nine FTEs).
Regarding Water -und revenues, Mr. Martinez noted that the budget used a five percent
increase in consumption over an eight year average for revenue projections. In addition, he said
raw water rates were calculated at $0.888 for ratepayers and $0.908 for contract customers, down
from FY 2006 rates of $0.903 for ratepayers and $0.953 for contract customers. He noted, however,
that a 5 75 percent increase in the cost -of -service rate was programmed into revenue projections,
equating to revenue of $` 1 million from residential customers and $1.5 million from commercial
customers. The rate increase would support the CIP for utility projects.
With regard to Water fund expenditures, Mr. Martinez pointed out that the only increase was
the increase in debt related to the aggressive capital improvement program. He also noted that a
Water Utilities Services Group was created to streamline functions currently performed by three
departments
Mr. Martinez referred to a char comparing customer growth rates for the utility funds in 1999
and 2006 He noted that the Water fund grew by 7.6 percent, the Wastewater fund grew by 6.6
percent but the Gas fund decreased by 6.5 percent.
Minutes - Regular Gounc Meeting
June 1:., 2006 - Page 14
Mr. Martinez compared the Gas fund revenues to expenditures (excluding the cost of natural
gas) between FY 2003 to FY 2005, noting that each year showed a negative balance. He covered a
number of challenges faced by the Gas fund as follows: declining customer base; sale of natural
gas fo: heating in warm weather conditions; direct competition with electric retailers; new
development/construction in not promoting the use of natural gas in homes or building; limited
marketing program. and ron-diversification of product sales
Mr Martinez discussed a number of recommendations for the Gas fund as follows:
implement a short-term rate structure that is not affected by variances in weather; consider
diversification of product sales; strengthen marketing comparison; consider long-term revision to
rate structure. and respond to Council's request to consider future options for the Gas fund. Mr.
Kinnison asked Mr Martinez to provide a comparison of residential and commercial rate to other
markets :n Texas. and whether the provider was private or public. Mr. Martinez answered
affirmatively, and noted that Corpus Christi and San Antonio appeared to be the only public gas
Providers in the State
Mr Martinez discussed the proposed cost of service rate adjustment for the Gas fund. First,
he proposed imposing a new base charge per meter of $1 per residential customer and $8.13 per
general customer. He said the rates for residential customer will be reduced at the higher levels of
consumption to promote more gas use. He said the base charge for Outside City Limit customers
will be $1 25 for residential and $10.16 for commercial. He said. for example, that a residential
customer using 3MCF of gas would see an increase of 5.3 percent in their gas bill. Commercial
users would also see a 3 5 percent increase in their gas bill for 50MCF gas.
Regarding Gas fund revenues, Mr. Martinez said 91 percent of the revenue increase was
attributable to the cost of natural gas. Regarding Gas expenditures, he said the increase in debt
was due to the Automated Meter Reading (AMR) project.
With regard to the 'Wastewater fund, Mr. Martinez said revenues included a 5.75 percent rate
increase, equating to increased revenue of $1.5 million from residential customers and $745,000
from commercial customers. He said expenditures included a reserve appropriation of $1 million for
unanticipated infrastructure needs
N ith regard to the Airport fund. Mr Martinez said revenues included a 5 percent increase in
enplanements over the same period cast year He said oil and gas revenues decreased
approximately $600.000 from FY 2006 because leases have ended, but he said a new RFP for
directional drilling will gc out this fiscal year to increase oil and gas revenues. Regarding
expenditures, he said Continental and American Eagle Airlines added a combined total of four
additional daily flights. and three positions were being held vacant to offset any revenue decreases.
Regarding the Gorr fund. Mr. Martinez said the fund was expected to end the fiscal year with
a positive balance of $15.300. He noted that associated revenues for FY 2006-07 were reduced
due to the temporary course closure at Gabe Lozano for scheduled CIP improvements. On the
positive side, however he said the trends show the number of rounds being played increased by
seven percent in FY .2005-06 Regarding golf fund expenditures, he said staff had realigned
operations to realize efficiencies and reduce staffing costs. He noted that the Gabe Lozano Sr.
course was scheduled for temporary closure during the months of August and October for
improvements He said Golf 2004 CIP Bond projects were scheduled for completion in FY 2006-07.
Regarding the Manna fund. Mr. Martinez stated the fund was in stable condition despite the
ongoing renovations. He said revenues were estimated to increase in FY 2007 due to live aboard
vessels and occupants and new slips rentals. In response to Mayor Garrett's question, Director of
Parks and Recreation Salk, Gavlik reported that all the marina improvements (new Peoples Street T-
Minutes - Regular Counc Meeting
June 1 >, 2006 - Page 15
Head clocks) would be completed by December. In response to Mr. Garcia's question, Marina
Superintendent Peter Davidson reported that the live aboard income could bring in a minimum of
$300,000 n revenues He also mentioned the Texas International Boat Show scheduled in April
2007
n conclusion, Mr. Martinez covered the remaining budget calendar as follows: June 27 —
speciai revenue/internal service/debt service funds presentation; July 11 — public hearing; July 18 —
first reading: and Jury 25 - second reading and adoption.
Mayor Garrett thanked Mr. Martinez and staff for their commitment to the budget process.
City Manager Noe announced that Item 19, a presentation by Dr. Ridge Hammonds on
Summer Connections programs, had been postponed until June 27, 2006.
Mayor Garrett called for the City Manager's report. City Manager Noe reported that a
Neighborhood Pride meeting for the NIP area bordered by Whitaker, Rickey et al would be held at
6:00 p m. tonight, Oso Recreation Center 1111 Bernice.
Mr Noe announced that the Health department was coordinating a Back to School
immunization clinic at the Robstown Health Clinic from 8 a.m. to 6 p.m. on Wednesday, June 28 at
the Calderon Auditorium.
Mr. Noe reported that at next week's meeting, the Council would be considering a special
revenue/internal service/debt service fund presentation; adoption of the FY 2006-07 Crime Control
Budget, zoning cases (one controversial), and a potential joint beach maintenance venture with
Nueces County for Padre Island.
Mayor Garrett noted that the last City Manager's transmittal report included 32 Council
Request items dating back to July 2004. He asked City Manager Noe to see if some items could be
addressed
Mayor Garrett mentioned that a fallen tree had blocked Lucille Street on Sunday. He said
several residents called to compliment the Solid Waste department's quick response. He asked Mr.
Noe to recognize the workers invo'ved
Mayor Garrett asked for the status on a complaint regarding water service for Gateway.
Assistant City Manager Massey said staff was working on it and had met with Gateway.
Mayor Garrett called for Council concerns and reports. Mr. Noyola asked if staff had spoken
with Clarkwood and Las Colonies residents about the flooding in that area. City Manager Noe
stated a town hall meeting was held yesterday, and the city was also scheduling debris pick-up free
of charge
Mr Noyola asked about the status of the State School Park. Director of Parks and
Recreation Sally Gaviik reported that the city had a master plan for the property, and submitted a
grant to Texas Parks and Wildlife but it was not funded. She said staff was resubmitting the grant in
June or July, incorporating Texas Parks and Wildlife department's suggestions. If the grant was not
funded_ she said the city had funds in the bond program to begin installing infrastructure. She also
reported that the Rotary' Club had plans to develop a Miracle Field, a baseball field for persons with
Minutes - Regular Council Meeting
June 13. 2006 - Page 16
disabilities. Mr. Noyola asked staff to mow the high weeds and grass on the property. He also
asked staff to consider building football fields in the park. City Manager Noe replied the Council
approved a master plan calling predominately for soccer fields, but they could be used for football.
Mr Noyola asked why the city cnarged for ambulance services when citizens paid taxes for
city services. City Manager Noe replied that revenues generated from sales taxes and property
taxes did not cover fifty percent of the operating budget; thus, the city had to charge user fees for
certain services. He said c harging a fee also encouraged users to make wise choices when calling
for service.
F=inally Mr Noyola asked if the city was spraying for mosquitoes. Mr. Noe replied
affirmatively.
Mr. Garcia said at the Northwest Senior Center town hall meeting, a citizen asked him to look
ata city project completed near Westview Drive. He said the property had been backhoed and the
soil had been exposed to a hydraulic leak. He thought the contractor had not acted responsibly.
City Engineer Escobar reported that the contractor had treated the hydraulic leak, but Mr. Garcia
said the resident had tested the site and said the soil had been contaminated. Mr. Escobar replied
that he had the citizen's contact information, and he said he would inspect the property personally.
Ms. Cooper reported on her trip to China representing the city on a National League of Cities
trade mission. She encouraged anyone interested in promoting trade to China to contact her for
more information She hoped that next year, local business people would attend as well.
Ms. Cooper also thanked Mr. Noe for arranging a meeting with Mr. Martinez and Director of
Economic Development Irma Caballero regarding the coliseum redevelopment negotiations. She
asked staff not to move too quickly on the project during the budget season. City Manager Noe
replied staff would be presentinc a new schedule on the coliseum project for the Council's
nformation
There being no further business to come before the Council, Mayor Garrett adjourned the
Counch meeting at 2:55 p m. on June 13, 2006