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HomeMy WebLinkAboutMinutes City Council - 08/26/2008 - WorkshopI HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Workshop Meeting of the Corpus Christi City Council of August 26, 2008, which were approved by the City Council on September 9, 2008. WITNESSETH MY HAND AND SEAL, on this the 9th day of September, 2008. Armando Chapa City Secretary SEAL PRESENT Mayor Henry Garrett Mayor Pro Tem Priscilla Leal* Council Members: Melody Cooper Larry Elizondo, Sr.** Mike Hummel) Bill Kelly Michael McCutchon John Marez*** Nelda Martinez *Arrived at 9:19 a.m. **Arrived at 10:07 a.m. ***Arrived at 10:22 a.m. MINUTES CITY OF CORPUS CHRISTI, TEXAS Council Workshop August 26, 2008 — 8:53 a.m. City Staff: City Manager George K. Noe City Attorney Mary Kay Fischer City Secretary Armando Chapa Mayor Garrett called the workshop meeting to order in the Council Chambers of City Hall. 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 workshop meeting. City Manager Noe announced that the focus of the workshop was to discuss the utility trust funds and the development of impact fees. Mr. Noe introduced the presentation team as follows: Assistant City Manager of Development Services Robert Nix, Deputy Director of Development Services Johnny Perales, and President of Duncan Associates Jim Duncan. Mr. Perales referred to a powerpoint presentation on the utility trust funds including previous work and considerations; methodology and evaluation; history of the water arterial, water distribution, wastewater trunk, and wastewater collector funds; wastewater fund inter -fund transfer; impact of transfers to wastewater collection line trust fund from the wastewater trunk line trust fund; solutions recommended to increase wastewater trust fund viability; revenue components of combined wastewater funds; existing apportionment of revenues for wastewater trust funds; proposed re -apportionment of revenues for wastewater trust funds; wastewater collection line trust fund activity before and after connection surcharge re -apportionment; wastewater trunk line trust fund before and after connection surcharge re -apportionment; proposed revenue enhancements for the wastewater trunk line trust fund; density factors and the affects to the wastewater trunk line; expansion of concept to water trust funds; water distribution line trust fund activity before and after connection surcharge re -apportionment; water arterial line trust fund activity before and after connection surcharge re -apportionment and the density factor applied; staff recommendation; proposed platting ordinance language; and requested council action. The following topics pertaining to this item were discussed: the wastewater inter -fund transfers; whether there is a system in place to pay back the transfers; an evaluation to determine the viability of the wastewater fund; the review period for the funds; expenditures in the wastewater collector line trust fund; the lack of new wastewater activity; the impact for closing the fund on development; how long the fund has been reopened and the activity; the density factor; the proposed re -apportionment revenues in the wastewater trust fund; the impact if the fund had not been shut down; whether the density factor applied to wastewater will encourage urban sprawl and the impact on development; and whether the density factor only applies to the trunk line trust fund. Minutes — Council Workshop August 26, 2008 — Page 2 Dr. McCutchon made a motion directing staff to begin the formal adoption process for recommended ordinance amendments. The motion was seconded by Ms. Martinez. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper, Elizondo, and Marez were absent. City Manager Noe announced that the next section of the presentation dealt with the remaining trust fund issues. Mr. Perales provided a presentation on the history of the $3.5 million "loan"; the current status of the loan, the trust fund balances as of July 31, 2008; recommended disposition of loan; and requested council action. The following topics pertaining to this item were discussed: whether the trust fund balances as of July 31, 2008 assume that the $3.5 million loan is transferred; the reason the loan transfer never occurred; the reason for the negative balance in the wastewater trunk line fund; whether the inter -fund transfers are reflected on the trust fund balances; whether there is a plan to pay back the $1.3 million transfer; repeal of the original loan; whether the development community expects the City to use CIP funds to pay for the London School and Rose Acres projects; requirements for lift stations and infrastructure; the reason the loan was appropriated and when; the state of the fund at the time the loan was approved; how the loan amount was determined; staff recommendation; and the distinction of developer funds. Dr. McCutchon made a motion directing staff to prepare an agenda item which will provide for the repeal of the $3.5 million loan of the previous ordinance, and a $1.3 million transfer of funds from the Wastewater CIP fund directly to the Sanitary Sewer Trunk Line Fund. The motion was seconded by Ms. Martinez. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez were absent. Mayor Garrett called for a brief recess to convene the regular Council meeting. Mayor Garrett returned to the workshop meeting at 10:18 a.m. to discuss the utility alternative financing study. Jim Duncan, Duncan Associates, referred to a powerpoint presentation including the consultant background; impact fee experience; the mission of the project; alternative financing methods; comparison with other Texas cities; current wastewater financing; trunk/collection line financing; wastewater financing issues; wastewater alternatives; wastewater recommendations; storm water financing issues; and storm water financing alternatives. The following topics pertaining to this item were discussed: the residential and commercial utility rate comparison; the plant being considered for the treatment plant expansion; whether the Allison plant can accommodate future growth; the anticipated timeframe to expand Allison; anticipated population growth near the Allison treatment plant; recent utility rate increases; implementing wastewater impact fees; whether staff recommends proceeding with the consultant's recommendation on impact fees; the system used by other cities on wastewater impact fees; direction by previous council; and other alternatives. Dr. McCutchon made a motion directing staff to implement a wastewater impact fee and bring back a recommendation. The motion was seconded by Mr. Hummell. City Secretary Chapa polled the Council for their votes as follows: Minutes — Council Workshop August 26, 2008 — Page 3 The foregoing motion failed with the following vote: Hummell, Leal, McCutchon, and Marez, voting "Aye; Garrett, Elizondo, Kelly, and Martinez, voting "No"; Cooper was absent. Mr. Kelly made a motion directing staff to proceed with recommendations on how to fund wastewater treatment plant expansion, including impact fees or other alternatives, the effect on rate payers, and the impacts of the various approaches. The motion was seconded by Mr. Elizondo. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye"; Cooper was absent. City Manager Noe announced that the final issue for discussion was the City contribution toward new infrastructure. Mr. Perales presented information including the current amount of contribution; the capital improvement program; treatment plant expansion; lift station and force main upgrades; trunk main extensions; positive and negative aspects; and requested Council action. The following topics pertaining to this item were discussed: whether infill lots would have impact fees; the plan to incorporate a development component; council control of expenditures for infrastructure; growth and redevelopment plan; Master Channel 31 reimbursement; whether staff will present a list of areas for directed growth as part of the plan; staff recommendation; whether the only funding method is CIP funds; the limitations established on CIP funding; other incentives for developing in a particular area; and evaluating the process in other communities. Mr. Kelly made a motion directing staff to develop a more detailed plan to incorporate a development component within future capital improvement programs as a part of a city directed growth and/or redevelopment incentive plan. The motion was seconded by Ms. Martinez and passed. City Secretary Chapa polled the Council for their votes as follows: The following motion was passed and approved with the following vote: Garrett, Elizondo, Kelly, McCutchon, Marez, and Martinez, voting "Aye"; Hummell and Leal voting "No"; Cooper was absent. There being no further business to come before the Council, Mayor Garrett adjourned the council workshop at 11:20 a.m. on August 26, 2008.