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HomeMy WebLinkAboutMinutes City Council - 07/29/2008I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Regular Meeting of the Corpus Christi City Council of July 29, 2008, which were approved by the City Council on August 19, 2008. WITNESSETH MY HAND AND SEAL, on this the 19th day of August, 2008. Armando Chapa City Secretary SEAL PRESENT Mayor Henry Garrett Mayor Pro Tem John Marez* Council Members: Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla Leal Michael McCutchon Nelda Martinez *Arrived at 11:13 a.m. MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting July 29, 2008 - 10:00 a.m. City Staff: City Manager George K. Noe City Attorney Mary Kay Fischer City Secretary Armando Chapa Mayor Garrett called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Senior Minister Assistant Jeanne Gardiner with Unity By The Sea and the Pledge of Allegiance to the United States flag was led by Council Member Mike Hummel). City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Garrett called for approval of the minutes of the regular Council meeting of July 15, 2008. A motion was made and passed to approve the minutes as presented. Mayor Garrett acknowledged that former Mayor Ben McDonald was present at the meeting. Mayor Garrett called for consideration of the consent agenda (Items 2 - 7). There were no comments from the public. Council members requested that Items 2, 3, and 5 be pulled for individual consideration. City Secretary Chapa polled the Council for their votes as follows: 4. RESOLUTION NO. 027785 Resolution approving an agreement to grant business incentives between the Corpus Christi Business and Job Development Corporation (4A Board) and SCORE Chapter 221, which grants $50,000 in business incentives for the operation of a program to assist small and start-up businesses in Corpus Christi; and authorizing the City Manager or his designee to execute a business incentives project agreement with the Corpus Christi Business and Job Development Corporation regarding implementation and administration of the agreement to grant business incentives. The foregoing resolution was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez voting "Aye"; Marez was absent. Minutes — Regular Council Meeting July 29, 2008 — Page 2 6. MOTION NO. 2008-195 Motion authorizing the City Manager or his designee to execute Change Order No. 17 to a Construction Contract with SLC Construction, LP, of Conroe, Texas in the amount of $91,270 for a total re -stated fee of $12,142,770.35 for the installation of an 8 -inch water line on Winnebago Street between Carancahua and Upper Broadway Streets. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummel!, Kelly, Leal, McCutchon, and Martinez voting "Aye"; Marezwas absent. 7. RESOLUTION NO. 027786 Resolution declaring and dedicating a 4.000 -acre (174,246 s.f.) tract of land (Wetland Preservation Site, Tract #1) and a 2.273 -acre (99,030 s.f.) tract of land (Wetland Buffer Zone, Tract #2) as a Wetland Preserve; authorizing the City Manager and his designee to execute and record the attached real estate instrument to that effect; and authorizing the City Manager and his designee to take actions necessary to maintain the property as a Wetland Preserve subject to and in accordance with the success criteria in the "Final Wetland Mitigation Plan for Master Channel 27 Drainage Improvements," as revised on January 29, 2008, Department of the Army Permit No. 24328. The foregoing resolution was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummel!, Kelly, Leal, McCutchon, and Martinez voting "Aye"; Marezwas absent. Mayor Garrett opened discussion on Item 2 regarding the use of tax notes and the purchase of a spotting tractor for Solid Waste. Council Member Leal asked whether staff had checked on the condition of the two ladies injured at the cave-in at Home Road and Port Road. City Manager Noe said that Interim Assistant City Manager Angel Escobar and the Risk Management staff went to the scene of the accident. Mr. Noe stated that he would provide a status report of the incident. Ms. Leal also expressed get well wishes to police officer Domingo Ibarra. Council Member Leal asked questions regarding the funding for the South Guth Ball Fields Relocation project; improvements to the Water Garden and Harbor Playhouse; whether the side loader refuse trucks were replacements to the Solid Waste fleet; the time period that the City has used side loader trucks; the life expectancy of the side loader trucks; and the functions of the spotting tractor. City Manager Noe stated that the funding for the South Guth Ball Fields provides for the costs associated with the fields including land acquisition. Ms. Leal requested a cost breakdown for the South Guth Ball Fields. Interim Director of Engineering Services Kevin Stowers explained that the improvements needed at the Water Gardens include reconstruction, redesign, and relocation of the pumping system. Director of Financial Services Cindy O'Brien stated that the Harbor Playhouse was included in the $3.5 million allocated for improvements to the Bayfront Arts and Science Parks. Ms. O'Brien added that the major portion of that money will be spent to replace the air handling system at the Convention Center. Mr. Stowers said that the funding that is left over can be prioritized by the Council to be used for improvements to the other facilities listed within the Bayfront Arts and Sciences Park. Interim Director of Solid Waste Operations Lawrence Mikolajczyk stated that the side loader trucks were replacements to the fleet and the side loader trucks have been used by the Solid Waste Department since 2000. Director of General Services Jim Davis stated that the life expectance of the side loader trucks is 6 years. Mr. Mikolajczyk explained that the spotting tractor is designed to improve the productivity at the transfer station. Minutes — Regular Council Meeting July 29, 2008 — Page 3 City Secretary Chapa polled the Council for their votes as follows: 2.a. RESOLUTION NO. 027783 Resolution amending Resolution No. 027649, which approved projects to be funded through tax notes, to allow for the transfer of funding between the individual approved projects as needed, while remaining within the authorized principal amount. The foregoing resolution was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez voting "Aye"; Marez was absent. 2.b. ORDINANCE NO. 027784 Ordinance amending Ordinance No. 027708 which authorized issuance of tax notes in principal amount of $22,260,000, to allow for the transfer of funding between the individual approved projects as needed, while remaining within the authorized principal amount. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez voting "Aye"; Marez was absent. 2.c. MOTION NO. 2008-193 Motion approving the purchase of a spotting tractor from Shoppa's Material Handling, LTD, of Fort Worth, Texas in accordance with Bid Invitation No. BI -0213-08, based on most advantageous bid for a total amount of $86,350.97. The tractor will be used by Solid Waste Services and is an addition to the fleet. Funding is available in the Solid Waste 2008 Tax Notes Capital Improvement Project (CIP) Fund. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez voting "Aye'; Marez was absent. Mayor Garrett opened discussion on Item 3 regarding the approval of a small business incentive agreement between the Corpus Christi Business and Job Development Corporation (4A Board) and ACCION Texas, Inc. Council Member Martinez expressed concern regarding the formula used to reimburse ACCION Texas for the business loan. A brief discussion ensued regarding the formula. Director of Economic Development Irma Caballero stated that staff would request that ACCION provide a spreadsheet detailing a list of customers since inception of the program; the amount of funds requested for the buy down; the interest rate provided to each customer; and the funding provided by the 4A Board. Council members asked questions regarding the formula used; the underwriting criteria; the interest buy -down percentage; the number of prior loans that started at 12%; the reimbursement to ACCION; whether staff has Attachment A; if ACCION only works with high risk loans; the Request for Proposal process; ACCION past performance; the size of the average loan; the effects of the program if approval of the contract is delayed; how the 5.5% buy down was determined; representation on the ACCION board; the ACCION headquarters; and the location of the local ACCION office. Ms. Martinez made a motion to defer action on the approval of the agreement with ACCION until August 1e. The motion was seconded by Mayor Garrett. The foregoing motion passed with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. Minutes — Regular Council Meeting July 29, 2008 — Page 4 3. POSTPONED UNTIL 8/12/08 Mayor Garrett opened discussion on Item 5 regarding the West General Aviation Apron Rehabilitation and Drainage Phase V Improvements. In response to Council Member Leal, Interim Director of Engineering Services Kevin Stowers stated that the Federal Aviation Administration (FAA) originally declined funding of the erosion work as the erosion was deemed minor. Mr. Stowers added that since erosion conditions have progressed, the FAA has requested that the City execute a change order for this work and has provided funding. City Secretary Chapa polled the Council for their votes as follows: 5. MOTION NO. 2008-194 Motion authorizing the City Manager or his designee to execute Change Order No. 5 to a Construction Contract with Bay Limited of Corpus Christi, Texas in an amount not to exceed $245,759 for a revised contract value of $7,918,270.20 for additional slope paving and repair of a headwall for the Corpus Christi International Airport West General Aviation Rehabilitation and Drainage Phase V Improvement Project. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummel!, Kelly, Leal, McCutchon, and Martinez voting "Aye"; Marez was absent. Mayor Garrett referred to Item 8, and a motion was made, seconded and passed to open the following public hearing on an amendment to the master sanitary sewer plan: 8. Public Hearing and Ordinance to consider amending the City's Comprehensive Plan by amending the Master Sanitary Sewer Plan (Wastewater Collection System Master Plan for the Allison Wastewater Treatment Plant Service Area) by extending the boundary of Master Plan Basin 26 in the Allison Wastewater Treatment Plant Service Area to include approximately 50 acres owned by Turner Industries Group, LLC, including Tumer Industries Tract, Block 1, Lot 1 and 24.559 acres out of the Consolidated El Paso Irrigation and Manufacturing Company Tract, State Survey 500, Abstract 582, Nueces County, Texas, that adjoins Turner Industries Tract, Block 1, Lot 1; providing for publication. Deputy Director of Development Services Johnny Perales explained that this item was the public hearing and proposed ordinance to adopt an amendment to the City's master sanitary sewer plan for the Allison area. Mr. Perales added that the proposed amendment provides for wastewater services to the Turner Industries project and provided a brief history of the project. Interim Assistant City Manager Angel Escobar stated that the City is continuing efforts for additional drainage in the Douglas Subdivision and Tuloso Road. Council members asked question regarding the area of land that would be serviced with wastewater that is currently not serviced; whether there is a sewer line down Leopard Street that will tie into the trunk line; whether this potential service area will include residential or additional Minutes — Regular Council Meeting July 29, 2008 — Page 5 commercial development; whether Turner Industries is meeting their obligation for storm water runoff as the project progresses; whether the storm water plan worked as anticipated or does it have a negative impact to the neighborhood; whether the City anticipates addressing additional drainage to the area; whether the City is raising Tuloso Road; the number of jobs and pay scale anticipated to be created by Turner Industries; location of the residential subdivisions in proximity to the project; whether there is a wastewater line to the Turner property; the line that services the two residential subdivisions; whether City staff performed wastewater flow calculations to see if the developer's engineer calculations were correct; and the impact of the increased flow from the Turner development to the Allison Wastewater Treatment Plant. No one appeared in opposition to the amendment to the master sanitary sewer plan. Mr. Elizondo made a motion to close the public hearing, seconded by Mr. Kelly, and passed. Mr. Chapa polled the Council for their votes as follows: 8. ORDINANCE NO. 027787 Ordinance to consider amending the City's Comprehensive Plan by amending the Master Sanitary Sewer Plan (Wastewater Collection System Master Plan for the Allison Wastewater Treatment Plant Service Area) by extending the boundary of Master Plan Basin 26 in the Allison Wastewater Treatment Plant Service Area to include approximately 50 acres owned by Turner Industries Group, LLC, including Turner Industries Tract, Block 1, Lot 1 and 24.559 acres out of the Consolidated El Paso Irrigation and Manufacturing Company Tract, State Survey 500, Abstract 582, Nueces County, Texas, that adjoins Tumer Industries Tract, Block 1, Lot 1; providing for publication. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez voting "Aye"; Marez was absent. ************* Mayor Garrett opened discussion on Item 9 regarding increasing appropriations for water operational costs and unbudgeted increased fuel costs. Assistant Director of Management and Budget Eddie Houlihan explained that this item is a housekeeping item to remain in compliance with the City Charter which prohibits funds from overspending their total appropriations approved by the City Council. Mr. Houlihan added that the three major events that affected the expenditures in the Water Fund include the two citywide boil -water notices in August; an increase in allowance for doubtful account expenses for two large customers for disputed water bills; and increased chemical costs. Mr. Houlihan stated that the appropriation from the Maintenance Services Fund is due to unbudgeted increased fuel costs. Council members asked questions regarding the names of the two delinquent large utility customers; whether the City continues to sell water to the two delinquent large utility customers; the person who determined the calculation for the percentage that was attributed to the large utility customer's storm water costs; how the City would have responded to residential customers if the customers had elected to stop paying bills while disputing incorrect calculations; whether the contract with large utility customers requires them to pay for water; whether the large utility customers were in compliance with their contract; the timeframe that the two utility customers have been withholding payment of their bills; whether the two large customers are still paying their water bills but not the perceived storm water costs; the balance in the unreserved water fund; the language in the City Charter that prohibits funds from overspending; the amount paid to the Texas Commission on Environmental Quality (TCEQ) for the violations during the two water boil notices; the reason the federal government has placed a part of the City's coastal waters on the Minutes — Regular Council Meeting July 29, 2008 — Page 6 contamination list; the flow from Corpus Christi Bay; whether the City continues to place signs for high levels of contamination; and consideration of action for large utility customers. Mayor Garrett called for comments from the audience. John Kelley, 413 Waco, stated that "We the People News" wrote an article regarding the costs associated with the water issues and spoke regarding conducting DNA testing on the bacteria to find the source of contamination at Corpus Christi Bay. City Secretary Chapa polled the Council for their votes as follows: 9.a. ORDINANCE NO. 027788 Ordinance appropriating $3,200,000 from the Unreserved Fund Balance in the Fund No. 4010 for Water Department Operational Costs; changing the FY 2007-2008 Operating Budget adopted by Ordinance No. 027352 by increasing expenditures by $3,200,000. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye". 9.b. ORDINANCE NO. 027788 Ordinance appropriating $300,000 from excess revenues in the Maintenance Services Fund No. 5110 for unbudgeted increased fuel costs; changing the FY 2007-2008 Budget adopted by Ordinance 027352 by increasing both revenues and expenditures by $300,000 each. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye". Mayor Garrett opened discussion on Item 10 regarding an amendment to the Commercial Property Sale and Purchase Agreement between the City of Corpus Christi and Beach Center Corporation. Community Development Administrator Daniel Gallegos provided an update on the Ward Building (formerly Nueces Lofts project) including the original scope of the project; the Ward Building's eligibility for listing on the National Register of Historic Places; re-evaluation of the original plan; and the rehabilitation of the building. Mr. Gallegos added that this project is vital for the revitalization of downtown. Mr. William Hoover, developer, was present to respond to questions. Council Members asked questions regarding whether the developer will continue to move forward with the project; whether demolishing the first floor for parking is feasible; loss of parking spaces; whether the Ward Building will be demolished; whether the Ward Building is actually on the National Register of Historic Places listing; the reasons the Ward Building is considered eligible for the National Register of Historic Places listing; whether the City will own the building once the purchase is complete; a description of the lease hold interest; the current land owner; whether Mr. Hoover purchased the property from the current owner; whether Mr. Hoover received the deed to the property subject to the lease; the number of lofts in the Nueces Lofts; and additional parking spaces for the tenants of the lofts. City Secretary Chapa polled the Council for their votes as follows: Minutes — Regular Council Meeting July 29, 2008 — Page 7 10. MOTION NO. 2008-196 Motion to authorize the City Manager or designee to execute a First Amendment to Commercial Property Sale and Purchase Agreement and documents necessary to acquire property from Beach Center Corporation located at 501/513 Chaparral Street aka Lots 1-4, Block 11, Beach Portion, Corpus Christ, TX (approximately 24,990 square feet). The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummel!, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye". * * * * * * * * * * * * * Mayor Garrett called for petitions from the audience. Monica Sawyer, 429 Ashland, requested that the Ritz Theatre be considered as a Bond 2008 project. Lydia Montalvo, 4830 Rogerson, spoke regarding the sidewalk and drainage problems in the Manshiem area and asked the Council to support funding for the area. Jerry Garcia, Southside Youth Sports Complex, spoke regarding the location of the Southside complex and the location of the projects funded in the proposed Bond 2008 issue. Colin Sykes, 309 Aberdeen, spoke in support of funding the Ritz Theatre and revitalizing the downtown area. Cecilio Garcia, 4734 Ingram, asked the Council to continue to improve the Manshiem project from Gabriel Street to Rogerson Street. Jeff and Hope Fonseca, 4829 Kendall, spoke regarding the removal of the second phase of the Manshiem project from the Bond 2008 issue. Mr. Fonseca asked the Council to consider finishing the project in the Manshiem area. J.E. O'Brien, 4130 Pompano, spoke regarding tax increases; the effective tax rate; and adopting the budget based on the total valuation increase of 5%. Mr. O'Brien asked questions regarding the actual valuation for the City. Mary Frances Arismendi, 2525 Wishbone Court, asked the Council to consider widening Williams Street from Staples Street to Airline Road. Jose Cortez, 4742 Nesbitt, addressed the problems in the Manshiem area including standing water during rain events; sewage in the homes; cracked sidewalks; and the corners not being ADA compliant. Lolly Bernal, 4838 Odem Drive, spoke regarding Phase 2 of the Manshiem project not included in the Bond election and the conditions in the area. Ms. Bernal asked for support for District 3. Roland Garza asked the Council to listen to the needs of District 3. Bob Algeo, 15629 Three Fathoms Bank Drive, thanked the Council for their work and spoke regarding the Padre Island Sea Turtle Recovery Program and the water tower logo. John Kelley, 3621 Austin, asked the Council to make decisions based on the priorities of the City and include those priorities in the Bond issue. * * * * * * * * * * * * * There being no further business to come before the Council, Mayor Garrett adjourned the Council meeting at 12:38 p.m. on July 29, 2008.