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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