HomeMy WebLinkAboutMinutes City Council - 08/31/2010MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Council Meeting
August 31, 2010 - 12:00 p.m.
PRESENT
Mayor Joe Adame
Mayor Pro Tem Brent Chesney
Council Members: City Staff:
Chris Adler City Manager Angel R. Escobar
Larry Elizondo, Sr. City Attorney Carlos Valdez
Kevin Kieschnick City Secretary Armando Chapa
Priscilla Leal
John Marez
Nelda Martinez
Mark Scott
Mayor Adame called the meeting to order in the Council Chambers of City Hall.
Council Member Leal requested that a special prayer be said for her grandson, Dennis
Chavez, who was deployed to the Middle East and all the soldiers fighting in the war. The invocation
was delivered by Chaplain Lynn Blackler with Christus Spohn Health System and the Pledge of
Allegiance to the United States flag was led by Council Member Chesney.
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 referred to Item 1 and the following board appointments were made:
Committee for Persons with Disabilities
Alana Manrow (Appointed)
Community Youth Development (78415) Program Steering Committee - (These appointments were
reconsidered twice during the meeting and discussion can be found on pages 8, 9 and 14. The
Council voted at the end of the meeting to postpone these appointments until September.)
Human Relations Commission
Robert A. Franklin (Appointed)
Water Shore Advisory Committee
Frank Brogan (Reappointed)
Mary K. Fant (Reappointed)
Ruth Blake (Reappointed)
Cindy Boston (Appointed)
Michael W. Potter (Appointed)
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INDEXED
Minutes -- Regular Council Meeting
August 31, 2010 — Page 2
Mayor Adame called for consideration of the consent agenda (Items 2 - 18). There were no
comments from the public. Council members requested that Items 9 and 16 be pulled for individual
consideration. City Secretary Chapa polled the Council for their votes as follows:
2.a. RESOLUTION NO. 028737
Resolution authorizing the City Manager or his designee to accept a grant in the amount of
$143,018 and to execute a contract and all related documents with the Texas State Library
and Archives Commission to continue operation of the Interlibrary Loan Referral Center at
the Corpus Christi Public Library for state fiscal year 2010-2011.
The foregoing resolution was passed and approved with the following vote: Adame, Adler,
Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye".
2.b. ORDINANCE NO. 028738
Ordinance appropriating $143,018 from the Texas State Library and Archives Commission
into the Library Grants Fund No. 1068 to continue operation of the Interlibrary Loan Referral
Center at the Corpus Christi Public Library for state fiscal year 2010-2011.
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".
3.a. RESOLUTION NO. 028739
Resolution authorizing the City Manager or his designee to accept a grant in the amount of $
378,821 and to execute a contract and ail related documents with the Texas State Library
and Archives Commission to continue operation of the South Texas Library System at the
Corpus Christi Public Library for state fiscal year 2010-2011.
The foregoing resolution was passed and approved with the following vote: Adame, Adler,
Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye".
3.b. ORDINANCE NO. 028740
Ordinance appropriating $378,821 from the Texas State Library and Archives Commission
into the Library Grants Fund No. 1068 to continue operation of the South Texas Library
System at the Corpus Christi Public Library for state fiscal year 2010-2011.
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".
4.a. RESOLUTION NO. 028741
Resolution authorizing the City Manager or his designee to accept a grant in the amount of
$78,767 and to execute a contract and all related documents with the Texas State Library
and Archives Commission to continue operation of the Technical Assistance Negotiated
Grant Program administered by the South Texas Library System at Corpus Christi Public
Library for the state fiscal year 2010-2011.
Minutes — Regular Council Meeting
August 31, 2010 — Page 3
The foregoing resolution was passed and approved with the following vote: Adame, Adler,
Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye".
4.b. ORDINANCE NO. 028742
Ordinance appropriating $78,767 from the Texas State Library and Archives Commission
into the Library Grants Fund No. 1068 to continue operation of the Technical Assistance
Negotiated Grant Program administered by the South Texas Library System at the Corpus
Christi Public Library for state fiscal year 2010-2011.
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".
5.a. RESOLUTION NO. 028743
Resolution authorizing the City Manager or his designee to execute an amendment to an
Interagency Cooperation contract with the Texas Historical Commission (THC), which
extends the term of the contract six months, thereby providing a contract term from January
1, 2010 through July 31, 2011; and which increases the funding provided by the THC for the
payment for services to be conducted in accordance with the contract, from $30,000 to
$50,000, therein providing additional funding of $20,000.
The foregoing resolution was passed and approved with the following vote: Adame, Adler,
Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye".
5.b. ORDINANCE NO. 028744
Ordinance appropriating $20,000 from the Texas Historical Commission (THC) in the No.
1069 Museum Grants Fund, to fund the THC salary increase for payment for services from
$30,000, which was previously appropriated by Ordinance No. 028416 approved on the 17th
day of November, 2009, to the amended amount of $50,000, for services to be conducted in
accordance with the first amendment of the THC contract; services to be performed include
the re -inventory of the La Belle artifact collection held at the Corpus Christi Museum of
Science and History.
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".
6.a. MOTION NO. 2010-198
Motion authorizing the City Manager or his designee to execute a contract with the Texas
Department of Family and Protective Services for funding in the amount of $503,500 from
the Community Youth Development Program for the 78415 Zip Code for projects as
recommended by the Community Youth Development Steering Committee for Fiscal Year
2010 — 2011, Contract Period September 1, 2010 through August 31, 2011.
The foregoing motion was passed and approved with the following vote: Adame, Adler,
Chesney, Elizondo, Kieschnick, Leal, Martinez, and Scott, voting "Aye"; Marez abstained.
Minutes — Regular Council Meeting
August 31, 2010 — Page 4
6.b. ORDINANCE NO. 028745
Ordinance appropriating $503,500 from the Texas Department of Family and Protective
Services in the No. 1060 Community Youth Development Fund to fund the Community Youth
Development Program in the 78415 Zip Code for Fiscal Year 2010-2011, Contract Period
September 1, 2010 — August 31, 2011.
An emergency was declared, and the foregoing ordinance was passed and approved with
the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Martinez, and Scott,
voting "Aye"; Marez abstained.
7.a. ORDINANCE NO. 028746
Ordinance authorizing the City Manager or his designee to execute an agreement with
Bayfest, Inc. for Bayfest 2010 and related activities to allow use of Shoreline Boulevard
including sidewalks, seawall and park areas from Power Street to Resaca Street during
September 14 through September 29, 2010; provide for Bayfest, Inc. paying 50% Police and
100 % of all other City costs.
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".
7.b: MOTION NO. 2010-199
Motion approving an admission fee for Bayfest of seven dollars, ($7.00) per day for adults
and three dollars, ($3.00) per day for military, seniors, children between the ages of seven to
twelve and persons with mobility assistance devices. Children ages six and under are
admitted free.
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. 2010-200
Motion approving the application from Bayfest, Inc. to temporarily close the following street
sections for the Bayfest 2010 Festival beginning, Tuesday, September 14, 2010 through
Wednesday, September 29, 2010 (Exhibit B).
a. The temporary street closure of Resaca Street between the intersection of Resaca
Street, Chaparral Street and the intersection of Resaca Street and Shoreline
Boulevard, beginning at 8:00 a.m. Tuesday, September 14,2010 through 5:00 p.m.
Wednesday, September 29, 2010.
b. The temporary street closure of Fitzgerald Street between the intersection of
Fitzgerald Street and Chaparral Street and the intersection of Fitzgerald Street and
Shoreline Boulevard, beginning at 8:00 a.m. Tuesday, September 14, 2010 through
5:00 p.m. Wednesday, September 29, 2010.
c. The temporary street closure of Palo Alto Street between the intersection of Palo
Alto Street and Water Street and the intersection of Palo Alto Street and Shoreline
Boulevard, beginning at 8:00 a.m. Tuesday, September 14, 2010 through 5:00 p.m.
Wednesday, September 29, 2010.
Minutes — Regular Council Meeting
August 31, 2010 — Page 5
d. The temporary street closure to eastbound traffic only of Palo Alto Street between
the intersection of Palo Alto Street and Chaparral Street and the intersection of Palo
Alto Street and Water Street, beginning at 8:00 a.m. Tuesday, September 14, 2010
through 5:00 p.m. Wednesday, September 29, 2010.
e. The temporary street closure of Water Street between the intersection of Water
Street and Palo Alto Street to the intersection of Water Street and Resaca Street;
beginning at 8:00 a.m. Tuesday, September 14, 2010 through 5:00 p.m.
Wednesday, September 29, 2010.
f. The temporary street closures of Shoreline Boulevard and the Barge Dock, between
Power Street and the Art Museum of South Texas, beginning at 8:00 a.m. Tuesday,
September 14, 2010 through 5:00 p.m. Wednesday, September 29, 2010.
The foregoing motion was passed and approved with the following vote: Adame, Adler,
Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye".
10. ORDINANCE NO. 028748
Ordinance abandoning and vacating a 10,803 -square foot portion (0.248 Acres) of a 15 -foot
wide utility easement out of Farmer's Row Subdivision, Block 1, Lot 4, and a portion of Flour
Bluff & Encinal Farm & Garden Tracts, Section 10, Lots 2 and 15; requiring the owner, R. L.
Owens, to comply with the specified conditions.
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".
11.a. ORDINANCE NO. 028749
Ordinance abandoning and vacating a 3,706.474 -square foot portion of a 10 -foot wide utility
easement out of Wilkey Addition Unit 2, Lot E, easement being located just south of the
South Padre Island Drive public right-of-way, and west of the Airline Road public street right-
of-way; requiring the owners, A & W Retail, LTD, to comply with the specified conditions.
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".
11.b. ORDINANCE NO. 028750
Ordinance abandoning and vacating a 1,855.980 -square foot portion of a 5 -foot wide utility
easement out of Wilkey Addition Unit 2, Lot 1, easement being located just south of the
South Padre Island Drive public right-of-way, and west of the Airline Road public street right-
of-way, requiring the owners, 4625 LTD, to comply with the specified conditions.
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".
Minutes — Regular Council Meeting
August 31, 2010 — Page 6
12. RESOLUTION NO. 028751
Resolution approving a Small Business Incentives Agreement between the Corpus Christi
Business and Job Development Corporation and Del Mar College, which provides a grant of
up to $173,223 for an Intern Program to support Small Businesses and authorizing the City
Manager or his designee to execute a Project Support Agreement with the Corpus Christi
Business and Job Development Corporation regarding implementation and administration of
the Del Mar Small Business Incentives Agreement.
The foregoing resolution was passed and approved with the following vote: Adame, Adler,
Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye".
13. RESOLUTION NO. 028752
Resolution approving a Small Business Incentives Agreement between the Corpus Christi
Business and Job Development Corporation and Texas A&M University - Corpus Christi,
which provides a grant of up to $190,635 for an Intern Program to support Small Businesses
and authorizing the City Manager or his designee to execute a Project Support Agreement
with the Corpus Christi Business and Job Development Corporation regarding
implementation and administration of the Texas A&M University - Corpus Christi Small
Business Incentives Agreement.
The foregoing resolution was passed and approved with the following vote: Adame, Adler,
Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye".
14. RESOLUTION NO. 028753
Resolution approving an Agreement to grant Small Business Incentives between the Corpus
Christi Business and Job Development Corporation and Score Chapter 221, which grants
$50,000 in Small 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 Support Agreement with the Corpus Christi Business
and Job Development Corporation regarding implementation and administration of the
agreement to grant small business Incentives.
The foregoing resolution was passed and approved with the following vote: Adame, Adler,
Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye".
15. RESOLUTION NO. 028754
Resolution approving a Small Business Incentives Agreement between the Corpus Christi
Business and Job Development Corporation and Coastal Bend Workforce Development
Board that provides a grant of up to $20,880 for Workforce Solutions' Small Business
Employer Intern Program and authorizing the City Manager or his designee to execute a
Small Business Incentive Project Support Agreement with the Corpus Christi Business and
Job Development Corporation regarding implementation and administration of the Coastal
Bend Workforce Development Board Small Business Incentives Agreement.
The foregoing resolution was passed and approved with the following vote: Adame, Adler,
Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye".
Minutes — Regular Council Meeting
August 31, 2010 — Page 7
17. RESOLUTION NO. 028755
Resolution approving a Small Business Incentives Agreement between the Corpus Christi
Business and Job Development Corporation and Del Mar College for the FastTrac® Growth
Venture TM Program, which will provide up to $120,000 in grants to program participants who
create and retain new jobs for their businesses, and authorizing the City Manager or his
designee to execute a Small Business Incentives Project Support Agreement with the
Corpus Christi Business and Job Development Corporation regarding implementation and
administration of the Del Mar College Small Business Incentives Agreement.
The foregoing resolution was passed and approved with the following vote: Adame, Adler,
Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye".
18. ORDINANCE NO. 028756
Amending Chapter 14 "Development Services," Article XIII, "Development Services Fees",
Division 1, "Technical Construction Code Fees", Section 14-1302, "Standardized Building
Valuation"; Section 14-1304, "Processing And Plan Review Fee"; Section 14-1306, "Special
Fees"; Section 14-1307, "Reduced Fees"; Section 14-1312, "Accounting"; and Section 14-
1313, "Technical Construction Code Fee Schedules", of the Code of Ordinances, City of
Corpus Christi, to provide for minimum permit fees, simplified methods to calculate Building
Permit Fees and Plan Review Fees; to provide for expedited Plan Review by Internal Staff;
to provide for customized Plan Review; to provide discounts of Fees to Permit Holders
meeting certain requirements; to provide for Special Inspections on non-standard days and
hours; to provide for Certificates of Completion to Shell Buildings; to provide for Fees for
Construction Site Offices, Fees for both standard and duplicate Certificates of Occupancy,
Fees for Temporary Events, Penalty Fees, Inspections Outside of the City Limits, Electrical
Permit Fees, Plumbing Permit Fees, Mechanical Permit Fees, Fuel Gas Permit Fees,
Swimming Pool Fees; and providing for Fees for existing applications made prior to the
effective date; providing a repealer clause; and providing an effective date of October 1,
2010. (First Reading — 08/24/10)
The foregoing ordinance was passed and approved on its second reading with the following
vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting
"Aye".
Mayor Adame opened discussion on Item 9 regarding an amendment to the lease
agreement between the City, Atlantic Aviation FBO Holdings, L.L.C., and Mercury Air Center —
Corpus Christi, Inc. Council Member Kieschnick expressed concern regarding the FBO process and
operations. Mr. Kieschnick asked questions regarding the type of background Express Airport
Services (EAS) has with FBO operations and the reason for the extension on the contract. Mr.
Kieschnick added that he feels that there is a huge disconnect between the general aviation
community and the airlines and the City does not have a full handle on the contract and how it
affects the operators that are currently utilizing Atlantic Aviation. Director of Aviation Fred Segundo
explained that staff is recommending the contract extension due to delays in the request for
qualification (RFQ) process; continued discussions for fuel contracting; and the 90 -day training
period for EAS to allow for a smoother transition of FBO providers. Council Member Kieschnick
spoke regarding the difference between airlines scheduled operations, charter operations, and
private operations and asked to visit with staff further regarding the different needs for FBO
operations. City Secretary Chapa polled the Council for their votes as follows:
Minutes — Regular Council Meeting
August 31, 2010 — Page 8
9. ORDINANCE NO. 028747
Ordinance authorizing the City Manager or his designee to execute a second amendment to
the lease agreement between the City, Atlantic Aviation FBO Holdings, LLC, and Mercury Air
Center — Corpus Christi, Inc., to extend the term of the lease until January 14, 2011.
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 16 regarding a small business incentives
agreement between the Corpus Christi Business and Job Development Corporation and ACCION
Texas. Council Member Martinez stated that in this economy, small businesses need access to
commercial credit and expressed concern regarding the high interest rates. Council Member
Martinez asked questions regarding the average interest rate provided by ACCION on the prior
contract and the current interest rate for this contract. Vicki Garcia, ACCION, reported that the
average interest rate for clients on the prior contract was between 10.5% and 18%, with most clients
receiving 12.5%. Ms. Garcia added that the current contract is 12.5%. Council Member Martinez
said that she did not understand the reason why interest buy down was the same as the prior
contract when interest rates are so low. Council Member Martinez also asked questions regarding
the $50,000 pilot program. Interim Director of Economic Development Emily Martinez explained that
the $50,000 is for a pilot program to provide grants. In response to Council Member Martinez, Ms.
Garcia stated that the closing cost fee averaged 3% to 9% of the loan amount. Council Member
Martinez said she would like to delay approval of this item until questions regarding the high interest
rates and closing costs are answered.
Ms. Martinez made a motion to table this item until September 14`h. The motion was
seconded by Mr. Kieschnick.
The foregoing motion was passed and approved with the following vote: Adame, Adler,
Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye".
16. TABLED TO SEPTEMBER 14TH
Resolution approving a Small Business Incentives Agreement between the Corpus Clarasti
■_ -
of e $375,000, for the4nterest Buy Down an -Grant Programs for Small Businesses and
authorizing tho City Manager or his docignee to execute a Small Business Incentive Projeot
Agreement.
* * * * * * * * * * * * *
City Secretary Chapa stated that there was an error made on the Community Youth
Development (78415) Program board appointments. Mr. Chapa reported that when Father Peter
Martinez was moved from the 78415 representative to the At Large position, the Council appointed
three (3) At Large members and should have only appointed two (2) At Large members. Mr. Chapa
stated that the Council has to decide on one (1) At Large appointment from the two (2) individuals
(Barrera and Giegerich) that are expressing interest in being reappointed. Mr. Chapa stated that
51% of the membership must be 78415 residents. Mr. Marez made a motion to reconsider the board
appointments. The motion was seconded by Mr. Scott and passed. A brief discussion ensued
regarding the composition of the members appointed; the Youth representative no longer being a
Minutes — Regular Council Meeting
August 31, 2010 — Page 9
78415 resident; and the Youth member required to be a representative in the Youth Action
Committee (YAC).
Mr. Chesney made a motion to accept the appointments made and postpone the youth
appointment to allow staff to find a Youth member that resides in the 78415 area. The motion was
seconded by Mr. Kieschnick.
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 recognized former Mayor Ben McDonald that who was present in the
audience.
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Mayor Adame announced the executive sessions, which were listed on the agenda as
follows:
19. Executive Session under Texas Government Code Section 551.071 regarding the City of
Corpus Christi, Texas vs. Friends of the Coliseum, Cause No. 10-60455-4, in the County
Court at Law Number 4, Nueces County, with possible discussion and action in open
session.
20. Executive Session under Texas Government Code Section 551.071 Consultation with
Attorney, regarding Time Warner Cable franchise provisions regarding public education and
government access channels, with possible discussion and action in open session.
The Council went into executive session. The Council returned from executive session.
Mayor Adame advised the public that the executive session was informational only and no action
was taken or will be taken in open session.
************
Mayor Adame opened discussion on Item 22 regarding a Commercial Energy Sales
Agreement for deliveries of electricity. Director of Intergovernmental Relations Rudy Garza
explained that staff performed a request for proposal (RFP) process through the City's STAP
consultant, RJC Energy Consulting for the electric accounts for the area served by Nueces Electric
Cooperative to find better rates for service. Mr. Garza stated that this is part of the on-going efforts
to audit the energy accounts and lower energy consumption and added that the annual savings to
the City is approximately $15,000. Council Member Elizondo asked questions regarding the status of
the energy management control for the buildings. Mr. Garza reported that the energy
managementcontrol for the buildings is part of the energy efficiency block grant effort. Mayor Adame
requested that staff provide the Council with a timeline for the energy management projects.
There were no comments from the audience. City Secretary Chapa polled the Council for
their votes as follows:
22. MOTION NO. 2010-204
Motion authorizing the City Manager to execute a Commercial Energy Sales Agreement for
deliveries of electricity and necessary, related services at an energy price not to exceed 7
cents per kWh plus standard delivery services charges, effective September 2010 and
Minutes — Regular Council Meeting
August 31, 2010 -- Page 10
extending up to December 31, 2013 for certain electric accounts in the area served by
Nueces Electric Cooperative.
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 23 regarding the Mansheim & Helen — Gabriel to
Kostoryz and Sunnybrook to Gollihar project and Mansheim Area Improvements. Director of
Engineering Services Pete Anaya explained that since this item was tabled on August 171h, staff has
conducted a series of meeting with representatives from Reytec to receive additional background
information on the company. Mr. Anaya summarized the findings on Reytec including the
establishment of the company in 1996; the number of employees; the capital income for 2009; that
there are no liens against the Reytec over the last three years; use of local consultants; responses
from interviews with other cities Reytec has worked for; and the proposed schedule. Greg T. Reyes,
President and CEO of Reytec, also provided background information on the public infrastructure
work performed by Reytec.
Council Member Adler commended Mr. Reyes on the success of Reytec, thanked him for
attending today's meeting, and said she had a great deal of confidence in his company. Ms. Adler
stated that the only reason for the additional background check was due to recent experiences with
other projects. Council Member Martinez thanked Mr. Reyes for being here and disclosing
information about his company. Council Member Leal stated that the people in District 3 and the
Mansheim neighborhood have been waiting for this project for over 43 years. Council Member
Chesney congratulated Ms. Leal for this project and her commitment to District 3.
Mayor Adame called for comments from the audience. Abel Alonzo, 1701 Thames, thanked
Council Member Leal and Roland Garza for their work on this initiative for the neighborhood. Roland
Garza thanked Council Member Leal for her years of service to the community and the
neighborhood.
The following topics pertaining to this item were discussed: whether provisions can be put in
place to require property owners to be responsible for improvements made by the City to their
properties and code enforcement.
Ms. Leal made a motion to accept Reytec Construction Resources, Inc. The motion was
seconded by Ms. Adler. City Secretary Chapa polled the Council for their votes as follows:
23. MOTION NO. 2010-205
Motion authorizing the City Manager or his designee to execute a construction contract with
Reytec Construction Resources, Inc. of Houston, Texas, in the amount of $6,890,519.50 for
Mansheim & Helen — Gabriel to Kostoryz and Sunnybrook to Gollihar (Bond 2008) and
Mansheim Area Improvements (CIP FY 2010) for the total base bid for Part 1 and Part 2.
(TABLED ON AUGUST 17, 2010)
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 21 regarding state and federal governmental
relations services. Director of Intergovernmental Relations Rudy Garza explained that the upcoming
State Legislative Session is beginning next year with several big issues that the City will be following
including the state budgetary issues; transportation funding; the sunset review process; and
redistricting. Mr. Garza stated that the governmental relations services team included Snapper Carr
Minutes — Regular Council Meeting
August 31, 2010 — Page 11
and Brandon Adhamalian with Focused Advocacy; Dan Pearson with Hillco Partners; and Larry
Meyers with Meyers & Associates. Snapper Carr, Focused Advocacy, was available to respond to
questions.
The following topics pertaining to this item were discussed: whether the lobbyists provide
updates on the status of the bills; communications with the local delegation; if the hotel occupancy
tax is on the legislative agenda; redistricting; the rebate for beach cleaning; water rights protection;
unfunded mandates; and the Big Cities Mayors' continued support for homeless funding and
appraisal district changes.
There were no comments from the audience. City Secretary Chapa polled the Council for
their votes as follows:
21.a. MOTION NO. 2010-201
Motion authorizing the City Manager to execute a renewal agreement between the City of
Corpus Christi and Focused Advocacy for state governmental relations services.
The foregoing motion was passed and approved with the following vote: Adame, Adler,
Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye".
21.b. MOTION NO. 2010-202
Motion authorizing the City Manager to execute a renewal agreement between the City of
Corpus Christi and HiIICo Partners for state governmental relations services.
The foregoing motion was passed and approved with the following vote: Adame, Adler,
Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye".
21.c. MOTION NO. 2010-203
Motion authorizing the City Manager to execute a renewal agreement between the City of
Corpus Christi and Meyers & Associates for federal governmental relations services.
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 24 regarding the assignment of a lease agreement
at the Airport with MDC Corpus, LLC to TCC Davis Holdings, LLC. Director of Aviation Fred
Segundo explained that MDC leased property at the airport in 1999 to construct the air cargo facility
for Airborne Express. Mr. Segundo added that the facility has been vacant for approximately 12
months and staff has been trying to find a new tenant. Mr. Segundo stated that this assignment to
TCC will allow a local company to expand their current operation and future operations.
In response to Council Member Martinez, Mr. Segundo reported that the ground lease for the
building is until 2014. There were no comments from the audience. City Secretary Chapa polled the
Council for their votes as follows:
24. ORDINANCE NO. 028757
Ordinance approving the assignment of a lease agreement at the Airport with MDC Corpus,
LLC, to TCC Davis Holdings, LLC; authorizing the City Manager or his designee to execute
the assignment and assumption instrument between all parties.
Minutes — Regular Council Meeting
August 31, 2010 — Page 12
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 referred to Item 24.1. regarding the tax rate. Assistant City Manager Oscar
Martinez explained that this item was for Council consideration for setting the tax rate for fiscal year
2010-2011. Mr. Martinez referred to a powerpoint presentation including the definition of the
effective tax rate and rollback tax rate; history of assessed valuations; history of ad valorem tax
rates; 2010 tax rates per valuation; Council action Options 1; Council action Option 2 and proposed
cuts to achieve the reduction in expenditures; updated five-year budget projections; population
growth for the City; and total utility debt. Mr. Martinez added that staff is recommending the adoption
of the ad valorem tax rate of $0.582269.
Mayor Adame called for comments from the audience. Dan Vera, 4322 Driftwood Place,
recommended consolidating fire and infrastructure costs which would allow for better visibility of
firefighters on the streets and safer roads.
The following topics pertaining to this item were discussed: an explanation of the rollback tax
rate; restricted capacity for capital infrastructure needs; money in the fund to cover anticipated debt;
whether the City would be able to fund unanticipated events as part of Option 1; leveraging
$409,138 from debt service to the general fund for use as part of Option 1; proposed reductions of
$1.4 million from debt services and an additional $2 million from the general fund to continue with
the $0.56 tax rate as part of Option 2; the reason staff did not include projections for the
consolidation/privatization efforts on the update five-year projections; and revenue received from the
Appraisal District.
Mr. Scott made a motion to support Option 1, setting the property tax rate of $0.582269 per
$100 valuation. The motion was seconded by Ms. Adler. A brief discussion ensued regarding
spending the additional $409,138 on streets.
The foregoing motion was passed and approved with the following vote: Adame, Adler,
Marez, Martinez, and Scott, voting "Aye"; Chesney, Elizondo, Kieschnick, and Leal, voting
"No"
Mr. Scott made a motion to move the $409,138 to street maintenance, increasing street
maintenance to $2 million. The motion was seconded by Mr. Marez. The following topics pertaining
to this motion were discussed: placing the money in reserves for future unanticipated uses; using
the funding for next year's deficit; and developing a long term solution for funding street
maintenance.
The foregoing motion was passed and approved with the following vote: Adame, Adler,
Marez, Martinez, and Scott, voting "Aye"; Chesney, Elizondo, Kieschnick, and Leal, voting
"No"
Mr. Chesney made a motion to direct staff to come back with an agenda item to establish a
five (5) member ad hoc task force to be chaired by Pat Veteto, appointed by the Mayor to look at
options to put in place a permanent mechanism for street maintenance and report back to the
Council with recommendations. The motion was seconded by Ms. Martinez. A brief discussion
ensued regarding possible membership suggestions including Bill Hennings; Darrell Haas; Ed
Martin; and Port Industry representatives.
The foregoing motion was passed and approved with the following vote: Adame, Adler,
Chesney, Elizondo, Kieschnick, Marez, Martinez, and Scott, voting "Aye"; Leal voting "No".
Minutes — Regular Council Meeting
August 31, 2010 -- Page 13
City Secretary Chapa polled the Council for their votes as follows:
24.1.a. ORDINANCE NO. 028758
Ordinance setting a property tax rate of $0.582269 per $100 valuation; prescribing the
property taxes to be levied, assessed, and collected by the City of Corpus Christi, Texas for
Tax Year 2010 and for each succeeding year thereafter until otherwise provided and
ordained and such other years as the same may be applicable.
An emergency was declared, and the foregoing ordinance was passed and approved with
the following vote: Adame, Adler, Marez, Martinez, and Scott, voting "Aye"; Chesney,
Elizondo, Kieschnick, and Leal, voting "No".
21.b. ORDINANCE NO. 028759
Ordinance amending the FY 2010-2011 Operating Budget adopted by Ordinance No.
028683 by increasing the estimated revenues for ad valorem taxes in Fund No. 1020
General Fund by $409,138 and decreasing the estimated revenues for ad valorem taxes in
Fund No. 2010 Debt Service Fund by $1,468,468.
An emergency was declared, and the foregoing ordinance was passed and approved as
amended with the following vote: Adame, Adler, Marez, Martinez, and Scott, voting "Aye";
Chesney, Elizondo, Kieschnick, and Leal, voting "No".
21.c. Ordinance setting a property tax rate of $0.563816 pct. $100 valuation; prescribing the
Tax Year 2010 and for each succeed year thereafter until otherwise provided and
efdaincd and such other yoars as the same may be applicable.
21.d. Ordinance amending the FY 2010 2011 Operating Budget adopted by Ordinance No.
028683 by decreasing tho estimated revenues and -expenditures in Fund No. 1020 General
Fund No. 2010 Debt Servico Fund by $1,486,646.
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Mayor Adame referred to Item 25 regarding the Fiscal Year 2011 Capital Improvement
Program (CIP). Assistant City Manager of Development Services Johnny Perales referred to a
powerpoint presentation including prioritization of projects; initial funding of the CIP; Option 1 — life
cycle replacement cost model; summary of life -cycle analysis for water, wastewater and storm water;
Option 2 —funding constrained model; Option 3 — minimal funding model; and the summary of
options. Assistant City Manager Oscar Martinez presented the summary of all current debt; the utility
debt summary; debt obligations and revenue bond debt services; utility debt service by department;
financing instruments including the commercial paper program and revenue bonds.
The following topics pertaining to this item were discussed: regulatory driven projects; the
total amount required to spend on an annual basis for utilities as part of Option 1; and
consideration/discussion for a County -wide Drainage District during a future Council meeting.
Mayor Adame called for a break on this discussion to listen to public comment.
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Minutes — Regular Council Meeting
August 31, 2010 — Page 14
Mayor Adame called for petitions from the audience. There were no public comments.
*************
Mayor Adame returned to Item 25 regarding Fiscal Year 2011 Capital Improvement Program
(CIP). Assistant City Manager Martinez returned to the presentation including the pay as you go
financing instrument; bond debt service pay as you go chart; CIP policy considerations; and the
adoption schedule.
The following topics pertaining to this item were discussed: advantages to using the
commercial paper program and the payment of bonds; commercial paper long term rate
implications; amending the debt management policy; commercial paper issuance of bonds and
anticipated payment schedule; the list of CIP projects and total costs by department; the date of the
last Administration Committee meeting; revenue opportunities associated with projects; estimated
rate increases over the next five years; whether the total debt includes new projects; and status of
the utility master plans.
*************
Mayor Adame returned to Item 2 regarding the board appointments to the Community Youth
Development (78415) Program. City Secretary Chapa reported that after the appointments, staff was
notified that the state guidelines have changed regarding the composition of the board and asked
that the Council consider reconsidering this item for clarification.
Mr. Chesney made a motion to reconsider the appointments to the Community Youth
Development (78415) Program. The motion was seconded by Mr. Elizondo.
The foregoing motion was passed and approved with the following vote: Adame, Adler,
Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye".
*************
Under the City Manager's Report section of the agenda, City Manager Escobar announced
his intention to move forward with the process of his retirement. He stated that he anticipated
bringing forth an item on September 14th asking the Council's acceptance for his retirement to be
effective January 4, 2011 subject to finalization of an agreement with the Mayor and City Attorney.
Mr. Escobar stated that this time would allow the Council to begin a search and transition to a new
City Manager. Mr. Escobar highlighter his accomplishments over his tenure including the completion
of the budget and tax rate; the Bond 2008 projects; the Memorial Coliseum; replacement of the ball
fields at South Guth Park, and various other projects.
*************
There being no further business to come before the Council, Mayor Adame adjourned the
Council meeting at 4:32 p.m. on August 31, 2010.
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I 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 August 31, 2010, which were approved by the City
Council on September 14, 2010.
WITNESSETH MY HAND AND SEAL, on this the 14th day of September, 2010.
Armando Chapa
City Secretary
SEAL