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HomeMy WebLinkAboutMinutes City Council - 05/26/2009I 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 May 26, 2009, which were approved by the City Council on June 9, 2009. WITNESSETH MY HAND AND SEAL, on this the 9th day of June, 2009. Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting May 26, 2009 - 10:00 a.m. PRESENT Mayor Joe Adame Mayor Pro Tem Kevin Kieschnick Council Members: Chris N. Adler Brent Chesney Larry Elizondo, Sr. Priscilla Leal John Marez Nelda Martinez Mark Scott City Staff: City Manager Angel R. Escobar City Attorney Mary Kay Fischer City Secretary Armando Chapa Mayor Adame called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Pastor Kyle Livingston, Sr. with Southside Community Church and the Pledge of Allegiance to the United States flag was led by Council Member Larry Elizondo. 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 Adame called for approval of the minutes of the regular Council meetings of May 19, 2009. A motion was made and passed to approve the minutes as presented. ************ Mayor Adame referred to Item 2 and the following board appointments were made: Airport Board Richard Drilling (Reappointed) Joseph Wise (Reappointed) Chad Magill (Appointed) Park and Recreation Advisory Committee Rita Sonia Padron (Appointed) Huxley Smith (Appointed) Transportation Advisory Committee Karen Beard (Reappointed) Daniel Carrizales (Reappointed) Edd Price (Appointed) Civil Service Board/Commission Eileen Butler (Reinstated) Susanne Bonilla (Appointed) Sister City Committee Melody Cooper (Appointed) Kate Rodriguez (Appointed) Elizabeth Garza (Appointed) Mary Babbili (Appointed) Mayor Adame called for consideration of the consent agenda (Items 3 -20). There were no comments from the public. Council members requested that Items 4, 6,13,16,17, and 20 be pulled for individual consideration. City Secretary Chapa polled the Council for their votes as follows: Minutes — Regular Council Meeting May 26, 2009 — Page 2 3. MOTION NO. 2009-133 Motion approving the lease of a wheel loader with Waukesha -Pearce Industries, Inc., of Corpus Christi, Texas for the total amount of $96,000, of which $8,000 is budgeted in FY 2008-2009. The award is in accordance with Bid Invitation No. BI -0152-09 and is based on best value. The term of the lease is for twenty-four months with an option to extend the lease for up to twelve additional months subject to the approval of the City Manager or his designee. The wheel loader will be used by the Parks and Recreation Department. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". 5.a. MOTION NO. 2009-134 Motion approving the purchase of Citrix XenApp Gold System from Intergraph Corporation Security, Government and Infrastructure of Madison, Alabama in the amount of $152,433, including software, professional services, 12 -month software maintenance and remote phone support to improve the Police Department mobile and field reporting capability. Intergraph Corporation is a State of Texas GoDirect Vendor. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". 5.b. MOTION NO. 2009-135 Motion approving the purchase of continued annual maintenance from Intergraph Corporation Security, Government and Infrastructure of Madison, Alabama for the Citrix XenApp Gold system subject to annual appropriation of funds. Intergraph Corporation is a State of Texas GoDirect Vendor. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". 7. MOTION NO. 2009-139 Motion authorizing the City Manager or his designee to execute a Contract for Professional Services with HDR Engineering, Inc., of Corpus Christi, Texas, in the amount of $147,955 for the Concrete -Lined Channel Rehabilitation: Airport Ditch Phase 3 and Horne Ditch Improvements for design, bid and construction phase services. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". 8. MOTION NO. 2009-140 Motion authorizing the City Manager or his designee to execute a construction contract with Palacios Marine Industrial Coating, Inc., of Palacios, Texas in the amount of $218,499 for the Oso Water Reclamation Plant Effluent Force Main and Pump Station Relocation/Upgrade for the Total Base Bid plus Additive Alternate Nos. 1 and 2. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". Minutes — Regular Council Meeting May 26, 2009 — Page 3 9. MOTION NO. 2009-141 Motion authorizing the City Manager or his designee to execute the Ratification of Amendment No. 5 of an engineering services contract with HDR Engineering, Inc., of Corpus Christi, Texas in an amount not to exceed $6,770 for a restated total fee not to exceed $51,770 for assistance with the U.S. Army Corps of Engineers Beach Cleaning Permit Application. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". 10. MOTION NO. 2009-142 Motion authorizing the City Manager, or his designee, to execute Change Order No. 14 to the construction contract with Bay Ltd., of Corpus Christi, Texas in the amount of $599,985 for a total restated fee of $11,413,882.78 for a 2 -inch overlay of hot mix asphaltic concrete, milling, manhole adjustments, pavement markings and related improvements for the Cimarron Boulevard, Phase 1 - Saratoga to Yorktown, for Bond 2008 Design Coordination and Project Management Services. (Bond 2004) The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". 11. MOTION NO. 2009-143 Motion authorizing the City Manager or his designee to execute Amendment No. 1 to the Relocation Agreement for adjustment of a six-inch (6") and ten -inch (10") pipeline in an additional amount of $128,755 for a restated not to exceed amount of $498,800 with NuStar Logistics, L.P., of San Antonio, Texas for the Corpus Christi International Airport Drainage Phase VI Project. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". 12. MOTION NO. 2009-144 Motion authorizing the City Manager or his designee to execute an architectural services contract with Freese and Nichols, Inc., of Corpus Christi, Texas in an amount of $280,211, for the new Vehicle Impound Facility, Phase 1 for design, bid, construction, and additional phase services. (Bond 2008) The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". 14. ORDINANCE NO. 028180 Ordinance abandoning and vacating a 625 -square foot portion of an existing 5 -foot wide electrical easement out of Country Club Estates Unit 19, Block 2, Lot 7, located on the southeast corner of the Saratoga Boulevard and Acushnet Drive public street right-of-way; requiring the owner, Saratoga Village Partners, L.L.C. to comply with the specified conditions. Minutes — Regular Council Meeting May 26, 2009 — Page 4 An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". 15. ORDINANCE NO. 028181 Ordinance approving the transfer of the lease with Corpus Assets, L.P., to Svabic Family Partnership, Ltd. for aerial, surface, and subsurface premises for operation of pedestrian skywalk across Antelope Street right-of-way between American Bank building and Petroleum Tower. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". 18. RESOLUTION NO. 028184 Resolution nominating Overhead Door Corporation, Horton Automatics Division to the Office of the Govemor Economic Development & Tourism, through the Economic Development Bank, for designation as a single retained job enterprise project, under the Texas Enterprise Zone Program under the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code. The foregoing resolution was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". 19. MOTION NO. 2009-146 Motion appointing Council Members as Board Members of the Corpus Christi Housing Finance Corporation and the Corpus Christi Industrial Development Corporation. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". Mayor Adame opened discussion on Item 4 regarding the FY2009 Edward Byme Memorial Justice Assistance Grant. Council Member Kieschnick asked whether $250,000 will cover the costs of upgrading the entire radio system for all of the patrol vehicles. Interim Police Chief Mike Walsh explained that the cost to cover the entire radio system will be done through a series of grants. Chief Walsh stated that this portion of funding is to upgrade the radio system to be P-25 compliant as mandated by state law. Don Nattinger, Radio Systems Coordinator, provided a brief overview of the P-25 system. In response to Council Member Martinez, Municipal Court Judge Deanie King provided an explanation of the purpose of the CHARACTER FIRST program. Council Member Leal asked questions regarding contracting services. Judge King said the contracting services include training for herself and community volunteers to maintain sustainability of the program. City Secretary Chapa polled the Council for their votes as follows: 4. RESOLUTION NO. 028179 Resolution authorizing the City Manager or his designee to submit a grant application in the amount of $300,000 to the Office of the Governor, Criminal Justice Division, for funding eligible under the FY 2009 Edward Byrne Memorial Justice Assistance Grant, funds to be used for the purchase of equipment and educational program to reduce crime and improve Minutes — Regular Council Meeting May 26, 2009 — Page 5 the efficiency and effectiveness of the criminal justice system and authorizing the City Manager or his designee to apply for, accept, reject, alter or terminate the grant. The foregoing resolution was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". Mayor Adame opened discussion on Item 6 regarding PeopleSoft software. Bill Kopecky, 3609 Topeka, spoke regarding annual maintenance fees; how much the City has spent over the years for the PeopleSoft system; the license expansion fee; and whether the City has done a review all of the software used by the City. Director of Municipal Information Systems Michael Armstrong stated that the City has not had an increase in maintenance fees for many years and the license expansion fee is based on the size of the budget. Mr. Armstrong added that MIS is in the process of reviewing all of the software applications of the City. City Secretary Chapa polled the Council for their votes as follows: 6.a. MOTION NO. 2009-136 Motion approving Amendment One to Schedule 1 to the Software License and Services Agreement, dated March 24, 1998 and all amendments and addenda thereto between City of Corpus Christi and Oracle USA, Inc. (successor in interest to PeopleSoft USA, Inc.) The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". 6.b. MOTION NO. 2009-137 Motion approving the purchase of additional PeopleSoft Budget and Finance software license and support from Oracle USA, Inc. of Redwood Shores, California for the total amount of $191,418, consisting of one-time license expansion fee of $156,900 and support fee of $34,518. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". 6.c. MOTION NO. 2009-138 Motion approving the purchase of continued annual maintenance from Oracle USA, Inc. of Redwood Shores, California for the PeopleSoft Budget and Finance software subject to annual appropriations of funds. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". Mayor Adame opened discussion on Item 13 regarding a consultant services contract with Horizon Centre for Phase 5 of the Development Services Process Improvement project. Interim Assistant City Manager for Development Services Johnny Perales explained that this contract is for Phase 5 of the Development Services Process Improvement project initiated in 2005 to redevelopment the Development Services Department. Mr. Perales stated that the primary focus of the project is to improve the quality and quantity of information related to the development services process as well as extensive staff training. Minutes — Regular Council Meeting May 26, 2009 — Page 6 The following topics pertaining to this item were discussed: the total cost of the consultant fees; the reasons for continuing the consulting services; the amount spent on consultant services; the scope of services; the original services provided in 2005; the survey process and training; and whether the consultant or staff is responsible for the improvements that have taken place to date. There was a general consensus of the Council to delay the vote on this item until after the Development Service Department Progress Update presentation. Mayor Adame opened discussion on Item 16 regarding The Preserve at Mustang Island. Council Member Martinez asked questions regarding the solvency of the trust funds. Interim Assistant City Manager Johnny Perales stated that the Planning Commission has reviewed the finance plan for the funds and will be presented with an action item. Mr. Perales provided an explanation of the primary issues with the financing plan. Council Member Martinez asked for an update on the four trust funds. City Secretary Chapa polled the Council for their votes as follows: 16. ORDINANCE NO. 028182 Ordinance appropriating $432,503 from the Sanitary Sewer Trunk System Trust Fund No. 540450-21800-4220 to pay The Preserve at Mustang Island, L.L.C., for Phase One (1) of the construction and installation of a Master Plan Lift Station with 8 -foot diameter wet well, 8,376 linear feet of a 4 -inch and 6 -inch PVC dual force main, and related appurtenances, located east of State Highway 361, south of Zahn Road. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". Mayor Adame opened discussion on Item 17 regarding AEP Texas's request for approval of an advanced metering system. Assistant City Attorney Lisa Aguilar explained that this resolution authorizes the City to intervene in the filing that AEP is submitting to the Public Utility Commission for their advanced meter system deployment plan and their request for surcharges for that deployment. In response to Mayor Adame, Ms. Aguilar responded that the system is referred to as smart meters. Council Member Leal asked whether it is important to implement the advanced meter system at this time. Ms. Aguilar stated that AEP has received direction from State law to implement an advanced metering system. Council Member Scott asked if the City has a representative on the steering committee. Ms. Aguilar said the representative is Director of Intergovernmental Relations Rudy Garza. Ken Griffin, AEP, reported that the smart meter system would provide a two -communication system and allow customers to review their consumption and reduce the amount of service charges. Mr. Griffin added that the project will begin in the City of Portland in October 2009 and the City of Corpus Christi in the first quarter of 2010. In response to Ms. Leal, Mr. Griffin stated that the workforce will be reduced over a period of time. City Secretary Chapa polled the Council for their votes as follows: 17. RESOLUTION NO. 028183 Resolution of the City of Corpus Christi, Texas authorizing intervention in AEP Texas Central Company's and AEP Texas North Company's request for approval of an advanced metering system (AMS) deployment plan and request for AMS surcharges filed at the Public Utility Commission of Texas; approving cooperation with the Steering Committee of Cities served by AEP Texas Central Company and Steering Committee of Cities served by AEP Texas Minutes — Regular Council Meeting May 26, 2009 — Page 7 North Company to review the application, and hire legal and consulting services and to negotiate with the company and direct any necessary litigation and appeals. The foregoing resolution was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Marez, Martinez, and Scott, voting "Aye"; Leal voting "No". Mayor Adame opened discussion on Item 20 regarding the renaming of Corpus Christi Beach. Director of Parks and Recreation Sally Gavlik stated that this item is to rename the north end of Corpus Christi Beach to Dolphin Park. Ms. Gavlik added that the community has been notified and this item has been approved by the Parks and Recreation Advisory Committee. In response to Council Member Adler, Ms. Gavlik stated that the location of the park is where the playground equipment is located. City Secretary Chapa polled the Council for their votes as follows; 20. FIRST READING ORDINANCE Renaming the park located at 300 Sandbar — South from "Corpus Christi Beach Park" to "Dolphin Park". The foregoing ordinance was passed and approved on its first reading with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". Mayor Adame referred to Item 21, and a motion was made, seconded and passed to open the public hearing on the following zoning case: 21.a. Public hearing to receive public comments regarding the City of Corpus Christi's proposed use of $911,062 of Community Development Block Grant (CDBG) program funds as it relates to the American Recovery and Reinvestment Act of 2009 also known as CDBG-R. Director of Community Development Daniel Gallegos provided an overview of the CDBG-R program including a background; the funding received; the parameters of the program; the number of projects requesting funding; and staffs recommendations. Mr. Gallegos added that funds for administration were being recommended because the program funds will have to be monitored, reported and tracked separately. Deborah Sherrill, Corpus Christi Housing Authority, stated that the Housing Authority has applied for CDBG funding three times and has not received any funding. Dr. Gloria Scott spoke regarding funding for the Housing Authority and the monitoring of CDBG projects. Dr. Scott also stated that she would like to see funding for the low income children in the northside area. Roland Garza stated that the mission for HUD is for the elimination of slum and blight in impoverished areas. Mr. Garza expressed concern that the needs of the people are not being met. Robert Garcia, Director of the Garcia Arts Center, spoke regarding the benefits of the center and thanked the Council for consideration of the Westside Business Association (NP)— Moroles Fountain Installation Garcia Facility Improvements. Betty Jean Longoria, thanked City Manager Escobar and Mr. Gallegos for their work on the CDBG program and spoke on behalf of the Westside Business Association (NP) — Moroles Fountain Installation Garcia Facility Improvements. Chad Magill, 641 Texas Avenue, stated that the Corpus Christi Hispanic Chamber of Commerce board unanimously approved support of the Westside Business Association (NP)— Moroles Fountain Installation Garcia Facility Improvements. Mr. Chesney made a motion to close the public hearing, seconded by Mr. Scott, and passed. Minutes — Regular Council Meeting May 26, 2009 — Page 8 The following topics pertaining to this item were discussed: the percentage of CDBG-R funding recommending for administration; monitoring and reporting of the projects; the reason the Corpus Christi Housing Authority is not being considered for funding; the projects benefiting low income people; the percentage of CDBG funding allocated to administration in the FY2009 Consolidated Annual Action Plan; the CPUBrightBiz — Direct Energy program; Southmoreland Addition improvements; the definition of low to moderate income; and rotating funding to different entities. Mayor Adame called for a brief recess to present proclamations and listen to public comment. Mayor Adame called for petitions from the audience. Dr. Gloria Scott, 4422 S. Alameda, spoke regarding an update on the public information process; open records requests on the City Manager selection process and the CDBG projects submitted to HUD and the Juneteenth Celebration. Wilson Wakefield, 6026 Killarmet, spoke in opposition to the Las Brisas Plant. Carolyn Moon, 4902 Calvin, spoke regarding the mercury emissions from the Las Brisas Plant. Ms. Moon also addressed Las Brisas paying for the pipeline along the Joe Fulton Corridor. J. E. O'Brien, 4130 Pompano, spoke regarding the fund balance and changing the fiscal year. Ron Hamilton, 3636 S. Alameda, asked the Council to listen to the presentation by Dr. Wes Stafford regarding the Las Brisas Plant and to place this item on the council agenda. Rebecca Stroisch, 920 Waco Street, spoke regarding traffic light safety near City Hall. Neil McQueen, 4213 Estate Drive, spoke regarding pollution from energy production and encouraged the Council to provide incentives for renewable energy companies like GlobalWatt. Dr. Mohammad Emran, 3200 Santa Fe, spoke regarding the risk associated with the Las Brisas Plant and encouraged the Council to support clean energy jobs. Colin Sykes, 309 Aberdeen, spoke in opposition to the Las Brisas Plant. Gabriel Guerra, President of the Westside Business Association, asked the Council to consider the CDBG-R proposal for the Westside Business Association (NP)— Moroles Fountain Installation Garcia Facility Improvements. Daniel George Mormon asked the Council to consider and discuss developing a feasibility study to turn the Memorial Coliseum into a homeless shelter for men and women. Mayor Adame returned to the Item 21 regarding the public hearing on the Community Development Block Grant (CDBG) program funds as it relates to the American Recovery and Reinvestment Act of 2009 also known as CDBG-R. The following topics pertaining to this item were discussed: concern that several of the project requests do not meet the standards set by the Obama administration; the parameters to consider projects; educating entities on the parameters of the program; deadlines to award projects; creation of jobs; and energy efficiency and education. Mr. Chesney made a motion to approve staffs recommendation. The motion was seconded by Mr. Elizondo. Mr. Chapa polled the Council for their votes as follows: 21.b. MOTION NO. 2009-149 Motion approving the Community Development Block Grant (CDBG) program funds as it relates to the American Recovery and Reinvestment Act of 2009 also know as CDBG-R as follows: Minutes — Regular Council Meeting May 26, 2009 — Page 9 • CDBG-R Administration - $50,184 • Coastal Bend Alcohol & Drug Rehabilitation Centerd.b.a. Charlie's Place (NP)— Fire System Phase II - $105,500 • Coastal Bend Center for Independent Living (NP) - $25,378 • CPL/BrightBiz — Direct Energy - $70,000 • Nueces County MH MR (NP) - Fostering Energy Independence - $75,000 • Neighborhood Centers of Corpus Christi, Inc. (NP) — Marguerite Neighborhood Center Reconstruction Project - $125,000 • Engineering Services — Southmoreland Addition Area Street Improvements Phases 3B and 4B Part 2 - $360,000 • Westside Business Association (NP)— Moroles Fountain Installation Garcia Center Facility Improvements - $100,000 The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". (Note: Ms. Adler abstained on this item as it pertains to the Westside Business Association (NP) — Morales Fountain Installation Garcia Center Facility Improvements; Mr. Elizondo abstained on this item as it pertains to the Westside Business Association (NP) — Morales Fountain Installation Garcia Center Facility Improvements; and Mr. Scott abstained on this item as it pertains to the CPUBrightBiz-Direct Energy.) Mayor Adame opened discussion on Item 22 regarding the Ethics Ordinance. City Attorney Fischer explained that this item is on the agenda in response to a request by Chairman Jim Cramer of the Ethics Commission. Mr. Cramer asked that the Council consider amending Ethics Ordinance, Ordinance No. 028170, regarding conflict of interests by suspending the effective date and allow the Ethics Commission the opportunity to review and make a recommendation to the City Council. Council Member Chesney suggested putting a timeframe to bring this item back to the Council. Ms. Fischer stated that the Ethics Commission has committed to completing their review by June 29`h. A brief discussion ensued regarding the timeframe and consideration of an extension. Council Member Leal made a motion to not suspend the ordinance and refer to the Ethics Commission for review. The motion died for lack of second. Council Member Scott requested information on the current ordinance and state laws regarding ethics. Council Member Leal requested a list of the individuals on the Ethics Commission including their background. Council Member Elizondo made a motion to amend the ordinance to allow the Ethics Commission 60 days to provide a recommendation and allow for an extension as needed. The motion was seconded by Mr. Marez. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: Minutes — Regular Council Meeting May 26, 2009 — Page 10 22. ORDINANCE NO. 028185 Ordinance amending Ordinance No. 028170 regarding conflicts of interest to suspend the effective date. An emergency was declared, and the foregoing ordinance was passed and approved as amended with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". Mayor Adame opened discussion on Item 23 regarding the intention to issue Combination Tax and Revenue Certificates of Obligation. Interim Director of Financial Services Constance Sanchez explained that this item is a request for approval to publish a notice of intention to sell up to $8.5 million of certificates of obligation to help fund three existing City projects. Ms. Sanchez provided information on the publication requirements; a description of the projects; the financial team; and the fee schedule for financial advisor and bond counsel. Ms. Sanchez introduced Mark Seal with M.E. Allison and Don Gonzalez with Estrada Hinojosa & Company who were available to respond to questions. The following topics pertaining to this item were discussed: the original work performed on Holly Road; the contractor and construction inspectors for the Holly Road project; when the report on the warranty issues for Holly Road will be available; the scheduled completion date for the Holly Road project; the timeframe for the Bayfront Development Improvements; the reason the City is using Fulbright and Jaworski as Bond Counsel; revisiting the bond counsel contract; whether the City will use small aggregate rock on all projects; the seal coat problems near La Palmera Mall; the wind turbines included in the Bayfront Development project; whether the City can have multiple bond counsel contracts; the reason for issuing the certificate of obligation; and the four (4) additives to the Bayfront Development Improvements. Mayor Adame called for comments from the audience. Bill Kopecky, 3609 Topeka, spoke regarding the issuance of certificates of obligation without the approval of the taxpayers; the reason the City is not using the existing Bond 2004 funding or the fund balance to pay for the Bayfront project; consideration of a policy regarding the use of certificates of obligation; and the aggregate used on Ocean Drive. City Secretary Chapa polled the Council for their votes as follows: 23.a. RESOLUTION NO. 028186 Resolution by the City Council of the City of Corpus Christi, Texas directing publication of notice of intention to issue Combination Tax and Revenue Certificates of Obligation in an amount up to $8,500,000 for the purpose of financing costs associated with making permanent public improvements to Holly Road, Bayfront Development Implementation Plan Phase 1 (Shoreline Realignment Phase 1), and the Rodd Field Public Improvement District; complying with the requirements contained in Securities and Exchange Commission Rule 15c2-12; and providing an effective date. The foregoing resolution was passed and approved with the following vote: Adame, Adler, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye"; Chesney voting "No". Minutes — Regular Council Meeting May 26, 2009 — Page 11 23.b. MOTION NO. 2009-147 Motion authorizing the appointment of Estrada Hinojosa & Company as Sole Underwriter; M.E. Allison as Financial Advisor; and Fulbright & Jaworski, LLP as Bond Counsel for the City of Corpus Christi, Texas Combination Tax and Revenue Certificates of Obligation, Series 2009. The foregoing motion was passed and approved with the following vote: Adame, Adler, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye"; Chesney voting "No". Mayor Adame opened discussion on Item 24 regarding an amendment to the FY2009 Consolidated Annual Action Plan (CAAP). Director of Community Development Daniel Gallegos explained that when the Council adopted the CAAP plan on April 21st, staff was only working on an estimated amount and did not have the final allocations. Mr. Gallegos reported that the CAAP plan has received an additional $40,942 in CDBG funds and $178,635 in HOME funds to allocate to existing projects recommended by City Council and listed the recommended projects. Mr. Gallegos added that staff was notified that the Costa Tarragona II Project was denied Low Income Tax Credits from the Texas Department of Housing and Community Affairs and recommends reallocating the Costa Tarragona II Project funding to the HOME Major Rehabilitation and Model Block programs. Mayor Adame called for comments from the audience. Dr. Gloria Scott spoke regarding the reallocation of funding to existing projects rather than looking at all of the projects. City Secretary Chapa polled the Council for their votes as follows: 24.a. RESOLUTION NO. 028187 Resolution authorizing the City Manager or his designee to amend the FY2009 Consolidated Annual Action Plan by adding additional funding in the amount of $40,942 for the Community Development Block Grant Program and $178,635 for the HOME Investment Partnerships Program for approved projects. The foregoing resolution was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". 24.b. MOTION NO. 2009-148 Motion authorizing the City Manager or his designee to reallocate $350,000 of FY 2009 HOME program funding from the Costa Tarragona II project to the Major Rehabilitation ($150,000) and Model Block Program ($200,000) projects. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". Mayor Adame referred to Item 25 regarding a general overview on the proposed FY2009- 2010 Operating Budget. Interim Assistant City Manager Cindy O'Brien introduced Assistant City Manager Oscar Martinez, Assistant Budget Director Eddie Houlihan, and Interim Director of Financial Services Constance Sanchez who were available to respond to questions. Minutes — Regular Council Meeting May 26, 2009 — Page 12 Mr. Martinez referred to a powerpoint presentation on the five-year forecast including the seven year historical average of the revenues and expenditures for the general fund and the five- year forecast for the water, storm water, wastewater, and gas funds. Mr. Houlihan referred to a powerpoint presentation on the budget including an overview; fund structure; the distribution of revenues and expenditures by fund; the budget preparation process; and the document format. Ms. O'Brien spoke regarding the combined fund summary of revenues and expenditures by fund; summary and fund balance by fund type; history of net taxable values; historical tax rate; tax rate split; change in sales tax collections; general fund unreserved fund balance; proposed utility rate increases; creation of storm water rate; salary adjustments; and the proposed budget calendar. The following topics pertaining to this item were discussed: the beginning and projected ending balance of the general fund five-year forecast; if seal coating is always done prior to placing an overlay on streets; involving the police and firefighters associations to discuss recommendations on GASB45; projections for GASB45; the estimated percentage of general fund growth; whether the forecast includes the demographic factors in the community; other ways to fund street maintenance and improvements; cap of sales tax; whether all sales tax requires voter approval; a comprehensive maintenance street program; whether storm water charges will still be reflected on the utility bill; average interest rates on short and long term notes and the certificates of obligation; whether staff prepared a forecast model if the storm water rates do not pass; the appropriation in the storm water fund for the utility business office; the number of residential and commercial customers; storm water capital improvements; the allocation for the red light photo enforcement fund; beach cleaning; the decreased funding for the arts in the hotel occupancy tax (HOT) fund; the debt services for the HOT fund; the Convention and Visitors Bureau incentives; funding the arts through the general fund; revenues and expenditures in the debt service fund; the general fund unreserved fund balance; the proposed utility rate increase; the determination for impervious cover; and the percent increase in ad valorem and sales tax. Council Member Scott asked for information on the HOT fund and arts allocations for the last four years. Council Member Martinez asked staff to communicate with the arts organizations regarding the proposed decrease in funding. Council Member Scott requested information on the creation of the storm water fund and the bases for impervious cover. Mayor Adame referred to Item 26 regarding an update on the progress of the Development Services Department. Interim Assistant City Manager of Development Services Johnny Perales referred to a powerpoint presentation including the primary customer service objectives; new versus existing service concepts; the March 2009 task list; survey results; improvement objectives; performance measurement; recent service improvements; further improvements; and timeline moving forward. George Arimes, Horizon Centre, spoke regarding the hiring of Horizon in 2005; worked performed during Phases 1 — 4; and the deliverables accomplished over the last three years to improve customer service and department processes. Mr. Arimes stated that the biggest challenges were employee turnover; keeping employees trained; and having consistent supportfor change. The following topics pertaining to this item were discussed: timeline for putting policies in places and implementing performance measures; procedures manual; completion of the Unified Development Code; staff turnover; the flexibility between commercial and residential construction; the loss of money due to the failure of the Development Services Department; MIS allocations; customer awareness of the changes occurring at Development Services; involvement of the Development Services Advisory Group (DSAG); council members calling random customers to receive customer input; and the consideration of having the Assistant City Manager of Development Services to have authority over engineering and legal issues. Minutes — Regular Council Meeting May 26, 2009 — Page 13 * * * ********** Mayor Adame returned to Item 13 regarding the consultant services contract with Horizon Centre. City Secretary Chapa polled the Council for their votes as follows: 13. MOTION NO. 2009-145 Motion authorizing the City Manager or his designee to execute a consultant services contract with Horizon Centre of Howard County, Maryland in the amount of $79,415 for the Development Services Process Improvement Project, Phase V. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". ************* The Council recessed for the annual meetings of the Corpus Christi Housing Finance Corporation (CCHFC), the Corpus Christi Industrial Development Corporation (CCIDC); and the Corpus Christi Community Improvement Corporation (CCCIC). Mayor Adame reconvened the regular Council meeting. There being no further business to come before the Council, Mayor Adame adjourned the Council meeting at 5:38 p.m. on May 26, 2009.