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HomeMy WebLinkAbout029127 RES - 07/12/2011Page 1 of 2 RESOLUTION AMENDING PART II, COUNCIL POLICIES, OF THE CORPUS CHRISTI CODE OF ORDINANCES, TO ADD FIVE POLICIES RELATING TO (1) APPROVAL OF THE CAPITAL IMPROVEMENT PLAN; (2) CAPITAL PROJECT STRATEGY; (3) UTILITY COSTS ASSOCIATED WITH GENERAL OBLIGATION BOND PROJECTS; (4) UTILITY CAPITAL RESERVE FUNDS; AND (5) STORM WATER CAPITAL PROJECTS, IN ACCORDANCE WITH RESOLUTION NO. 028994 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. Council Policies, Part II of the Corpus Christi Code of Ordinances, is amended by adding the following new policies: Section 21, "Approval of Capital Improvement Plan;" Section 22, "Capital Project Strategy;" Section 23, "Utility Costs Associated with General Obligation Bond Projects;" Section 24, "Utility Capital Reserve Funds;" and Section 25, "Storm Water Capital Projects;" each of which a true copy is attached as Exhibit A and incorporated herein. ATTEST: Armando Chapa, City Secretary APPROVED AS TO LEGAL FORM: 06 -Jul -11 tx witA, 0 e,taiss( Veronica Ocanas Assistant City Attorney For City Attorney CITY OF CORPUS CHRISTI Joe Ad e, Mayor 029127. H:1LEG-DIR\Veronica011.ENG11 AGENDA ITEM S1201110712111071211 RESO adding policy re adoption of CIP.docx INDEXED Corpus Christi, Texas /116 -day of ,2011. The above resolution was passed by the following vote: Joe Adame Chris N. Adler Larry R. Elizondo, Sr. Kevin Kieschnick Priscilla Leal John E. Marez Nelda Martinez Mark Scott David Loeb 417- /47/dt 029127 Page 2 of 2 H:1LEG-DIR\VeronicaO11.ENG11 AGENDA ITEM S1201110712111071211 RESO adding policy re adoption of CIP.docx Exhibit A, Page 1 of 2 21. Approval of Capital Improvement Pian. Approval of the Capital Improvement Pian for the City's utilities by the City Council shall precede or at least coincide with the City Council's approval of the utilities operating budgets. The approval process for the Capital Improvement Plan for the utilities must include a review of the prior year's budgeted costs to actual amounts expended; forecasted capital costs, projected utility rate increases, and estimated operating cost impact. 22. Capital Project Strategy. Development, review, and adoption of the City's Capital Improvement Plan must employ a long term capital project strategy that includes but is not limited to value engineering. All capita! projects must include a statement as to their impact on the operating budget. 23. Utility Costs Associated with General Obligation Bond Projects. In an effort to minimize pressure on utility rates and increase transparency regarding the full cost of projects included in periodic voter -authorized bond proposals, all tax -supported projects included in the General Obligation voter -authorized bond proposals or other tax -supported projects may include funding for all utility needs from the tax -supported funding source. Further, should there be any subsequent amendments and/or change orders and/or additives to the General Obligation voter - authorized or other tax -supported bond projects, separate utility monies will be expressly prohibited from being used, unless expressly approved by the Assistant City Manager over Public Works. Additional funding, if required, must come from tax - supported funding (i.e., General Obligation Bonds, tax notes, Certificates of Obligation, etc.). 24. Utility Capital Reserve Funds. For the water, wastewater, gas and storm water utilities, any net assets of each utility operating fund (defined as that available at the close of the previous fiscal year as evidenced in the Comprehensive Annual Financial Report) in excess of targeted 3 - month operating reserves and other necessary reserves will be transferred to a separate capital reserve account for each utility. Reserves in this capital account shall be used only for the benefit of the utility from which the reserves originated for purposes of cash -funding capital projects. If expressly approved by the City Manager or designee, and from time to time, any available reserve amounts may be transferred back to that respective utility's operating fund to replenish operating reserves, but only in cases where that utility's revenues or expenses have been impacted by adverse changes due to weather, disaster, or other emergency condition and where the revenue bond coverage of that utility would not be adversely affected. Exhibit A C:IDOCUME-1IGLENDA-1.CCP\LOCALS-11TemplExhibit A, as amended, for 071211 RESO adding policy re adoption of CIP.docx Exhibit A, Page 2 of 2 25. Storm Water Capital Projects. The City Council shall review the storm water capital projects and the burden that these projects place on the City's "inside city limits" water customers through the City's water rates. Exhibit A C:IUOCUME- 11GLENDA-1.CCPILOCALS411TemplExhibit A, as amended, for 071211 RESO adding policy re adoption of CIP.docx