HomeMy WebLinkAboutAgenda Packet City Council - 08/12/2021City Council Workshop Session
City of Corpus Christi
Meeting Agenda - Final
1201 Leopard Street
Corpus Christi, TX 78401
cctexas.com
City Council Chambers9:00 AMThursday, August 12, 2021
FY 2022 Budget Workshop for Streets, Stormwater (including Proposed Stormwater
Fee), Water and Wastewater Utilities, Capital Budget and Gas Department
Public Notice - - ITEMS ON THIS AGENDA ARE FOR COUNCIL'S INFORMATIONAL
PURPOSES ONLY. NO ACTION WILL BE TAKEN AND NO PUBLIC COMMENT WILL BE
SOLICITED.
A.Mayor Paulette M. Guajardo to call the meeting to order.
B.City Secretary Rebecca L. Huerta to call the roll of the required Charter Officers.
C.BRIEFINGS TO CITY COUNCIL:
1.21-1002 FY 2022 Budget Workshop for Streets, Stormwater (including Proposed
Stormwater Fee), Water and Wastewater Utilities, Capital Budget and Gas
Department
Sponsors:Office of Management and Budget
D.ADJOURNMENT
Page 1 City of Corpus Christi Printed on 8/9/2021
AGENDA MEMORANDUM
City Council Workshop of August 12, 2021
DATE: August 6, 2021
TO: Peter Zanoni, City Manager
FROM: Eddie Houlihan, Director of the Office of Management and Budget
EddieHo@cctexas.com
(361) 826-3792
STAFF PRESENTER(S):
Name Title/Position Department
1. Richard Martinez Director Public Works
2. Michael Murphy Chief Operations Officer Water Utilities
3. Jeff Edmonds Director Engineering
4. Bill Mahaffey Director Gas
ISSUE:
This is the second of four City Council workshops to discuss the FY 2022 proposed operating and capital
budget. The topics for the second workshop include Streets, Stormwater (including proposed fee), Water
and Wastewater, Capital Improvements and Gas.
BACKGROUND INFORMATION:
A briefing on the FY 2022 proposed budget was presented to the Mayor and City Council on July 27,
2021. The FY 2022 proposed budget focuses on City Council and community priorities including street
reconstruction and maintenance, public safety, parks, and neighborhood services. The FY 2022
proposed budget, comprised of all funds excluding transfers, totals $1.2 billion. The General Fund budget
is $258.3 million, and the Capital Budget totals $420.1 million.
A series of four City Council budget workshops is scheduled to be held from August 5 to August 26. At
these sessions, City staff will review in detail the budget proposals with the Mayor and City Council.
Additionally, there will be five public input sessions to be held from August 9 to August 18. The budget is
scheduled to be adopted on September 7, 2021, for the City’s fiscal year which begins on October 1.
City Council Workshop on Streets, Stormwater, Water and Wastewater Utilities, Capital
Improvements and Gas for FY 2022 Proposed Budget
The second budget workshop will be held on Thursday, August 12, 2021, at 9:00 am. At the workshop,
the City Council will be presented with the FY 2022 proposed budget for Streets, Stormwater (including
proposed fee), Water Utilities, Capital Improvements and Gas.
Streets:
The focus of the Street Department is to manage, maintain, and develop the City’s Street system.
The FY 2022 combined proposed operating and capital budget for the Street Department is $121.5 million
and includes funding from the Street Maintenance Fund, Residential Street Reconstruction Fund, and
Capital Improvement Program. Below is a summary of the funding and position counts that would be
authorized by the FY 2022 proposed budget.
FUND FY 2022
PROPOSED BUDGET AUTHORIZED POSITIONS
Street Maintenance Fund $42,857,995 153
Residential Street Reconstruction Fund 18,454,211 0
Capital Projects 60,188,554 0
Total $121,500,760 153
The FY 2022 budget includes $121.5 million for street maintenance and reconstruction which includes
Residential and Arterial & Collectors.
The Street Department’s FY 2022 proposed budget includes funding for an additional street rehabilitation
paving crew composed of 12 positions and new equipment, safe route to school program to rehabilitate
sidewalk infrastructure near education centers, continuation of Vision Zero program and a comprehensive
pavement evaluation survey of City streets and roadways.
Stormwater:
The focus of the Stormwater Department is to collect and convey stormwater, protect life and property
from storm flooding and protect water quality.
City staff is recommending a Stormwater fee in FY 2022 to stabilize the revenue stream to properly
maintain and increase services, remove the stormwater charge from the water rate and create a fair fee
structure for stormwater management tied to drainage runoff.
The FY 2022 combined proposed operating and capital budget for the Stormwater Department is $78.9
million and includes funding from the Stormwater Fund and the Capital Improvement Program. Below is
a summary of the funding and position counts that would be authorized by the FY 2022 proposed budget.
FUND
FY 2022
PROPOSED BUDGET AUTHORIZED POSITIONS
Stormwater Fund $17,765,684 115
Capital Projects 58,092,871 0
Total $75,858,555 115
The FY 2022 proposed budget for the Stormwater Department includes additional funding to add 12
positions for channel and ditch maintenance, an increase in arterial street sweeping from four to eight
times per year and a stormwater system televising and inspections program.
Stormwater Fee
Since 1989 the City of Corpus Christi has funded stormwater services through the water rate. For FY
2021, the water rate generates approximately $140.7 million in revenue, of that approximately $16.9
million is allocated for storm water services. The allocation amount does not include past debt services.
The Public Works Department was tasked by the Mayor and City Council with creating a fair and equitable
fee structure for stormwater that more accurately reflects usage of the City’s drainage system.
Additionally, Public Works was tasked with removing stormwater from the water rate, creating a stable
Stormwater revenue stream, and engaging stakeholders in the process.
In 2020, the City hired Raftelis and WSP, both of which are financial and management consultancy
groups with specialized expertise in storm water fee structures and public outreach.
Since March 2020, City staff have held multiple stakeholder meetings and have continued working with
both consultants as well as stakeholder groups to develop a stormwater fee rate model.
During the development process last summer, Public Works was directed to pause the development of
a proposed fee due to COVID-19 and the effects that such a fee might have on residents and businesses
in the midst of a pandemic. It was decided that the fee process was to be postponed until 2021. In
February 2021, the Mayor and City Manager gave direction to Public Works to resume the process of
creating a standalone Stormwater Fee which will ultimately remove it from the water usage calculation.
The objectives of a new Stormwater fee are threefold:
To create a stable revenue stream to properly maintain and increase services to the stormwater
system to include capital improvement projects
Remove stormwater from the water rate to create financial transparency
Create a fair fee structure for stormwater management that is tied to drainage runoff
The City’s current stormwater program does not adequately meet the needs of our growing area. Staff
has recommended the implementation of a five-year plan of improvements which helps prevent flooding
and keep pollution from getting into our creek, bays, estuaries, and ocean. The FY 2022 program
enhancements include:
In-house Street Sweeping Program: Increase Arterials from four to eight times a year
Additional Inlet Cleaning and Inspection Crew: Increase to two crews
Storm Water Utility Fee Team: Resolution and Utility Assistance Program
ID/IQ Construction Contract: William Ditch and Glenoak Dr.
Stormwater System Televising and Inspections Program
FY 2023-2026
Street Sweeping: Transitioning Total Program to In-House and increasing residential from two to
four times a year
Additional Inlet Cleaning and Inspection Crew: Increased cleaning cycles from three to two years
Additional Channel and Ditch Maintenance Crew: increase to two crews
Vegetation Maintenance: Herbicide and Mowing improvements
ID/IQ Construction Contract: Bridge, Channel and Infrastructure Rehabilitation
Creek Monitoring and High-Water Detection System
Continued Bay Water Quality Improvements
The program includes a proposed rate which will have a zero effect on the typical water consumer and
for those seeing an increase a Utility Assistance Program will be implemented for the low-income, seniors
(65 years of age and older) and disabled.
Water and Wastewater:
The focus of the Water Utilities Department is 24-hour per day utility operations to provide clean and
dependable water and wastewater services to customers. This entails reliable delivery of safe potable
water and raw water to customers in addition to the collection, treatment, and disposal of wastewater.
Rate changes are proposed for Water and Wastewater in FY 2022. A typical water residential customer
using 6000-gallons of water a month will see a monthly decrease of $6.12 in their water rate offsetting
the proposed stormwater fee for most residential customers. The monthly increase for a typical residential
Wastewater customer with a 5000-gallon winter quarter average will be $1.97.
The FY 2022 proposed budget for the Water and Wastewater Departments is $409.1 million and includes
funding from the Water Fund, Wastewater Fund and Capital Improvement Program. Below is a summary
of the funding and position counts that would be authorized by the FY 2022 proposed budget.
FUND FY 2022
PROPOSED BUDGET AUTHORIZED POSITIONS
Water Fund $142,910,416 309
Wastewater Fund 74,205,769 232
Capital Projects 192,006,641 0
Total $409,122,826 541
The FY 2022 proposed budget for Water includes funding for exterior maintenance of water storage
tanks, two positions to take over backflow prevention program from Development Services, two positions
for maintenance, repairs and line locating for the Mary Rhodes Pipeline. Water capital program includes
$25 million in FY 2022 and $145 million over the next three years to rehabilitate and upgrade O.N.
Stevens Water Treatment Plan. The water capital program also includes $39 million in FY 2022 and
$112.5 million over the next three years to replace and repair water lines citywide.
The FY 2022 proposed budget for Wastewater includes the addition of eight positions for Wastewater
Treatment Plant maintenance, purchase of eight vehicles and machinery to modernize the wastewater
fleet and capital improvements of $ 34.8 million in FY 2022 and $118.1 million over the next three years
to repair, rehabilitate and upgrade all six Wastewater Treatment Plants.
Bond Program/CIP Budget:
The focus of the Engineering Department is to assist City departments in support of new projects and
maintenance of existing infrastructure.
The total FY 2022 proposed budget for Capital Improvement Program is $448.9 million. Below is a
summary of the funding and position counts that would be authorized by the FY 2022 proposed budget.
FUND FY 2022
PROPOSED BUDGET AUTHORIZED POSITIONS
Capital Projects $448,940,203 0
Total $448,940,203 0
Gas:
The focus of the Gas Department is to deliver natural gas to customers.
The FY 2022 proposed budget for the Gas Department is $57.7 million and includes funding from the
Gas Fund and Capital Improvement Program. Below is a summary of the funding and position counts
that would be authorized by the FY 2021 proposed budget.
FUND FY 2022
PROPOSED BUDGET AUTHORIZED POSITIONS
Gas Fund $47,386,010 165
Capital Projects 10,307,260 0
Total $57,693,270 165
The FY 2022 proposed budget for Gas includes the addition of seven positions to support the meter
replacement program, eight positions to support the infrastructure replacement program and purchase of
17 vehicles and machinery to modernize the Gas fleet.
LIST OF SUPPORTING DOCUMENTS:
PowerPoint - not attached
Streets
Stormwater
Proposed Stormwater Fee
Water Utilities (including Wastewater)
Capital Improvements and,
Gas