HomeMy WebLinkAboutMinutes City Council - 03/29/1988a
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
REGULAR COUNCIL MEETING
MARCH 29, 1988
9:00 a.m.
PRESENT
Mayor Betty Turner
Mayor Pro Tem David Berlanga, Sr.
Council Members:
Leo Guerrero *
Clif Moss
Bill Pruet
Mary Rhodes
Frank Schwing
Mary Pat Slavik
Linda Strong
Mayor Betty Turner
City Hall at 9:09 a.m.
City Manager Juan Garza
City Attorney Hal George
Ass't. City Secy. Dorothy Zahn
Absent
City Secretary Armando Chapa
called the meeting to order in the Council Chamber of
The invocation was given by Ms. Marjorie Morrill following which the
Pledge of Allegiance to the Flag of the United States was led by Council Member
Slavik.
Assistant City Secretary Zahn called the roll and verified that the
necessary quorum of the Council and the required charter officers were present
to conduct the meeting.
A motion was made by Council Member Slavik that the Workshop Minutes of
March 15, 1988 and the Minutes of the Regular Council Meeting of March 22, 1988
be approved as presented; seconded by Council Member Schwing and passed
unanimously by those present and voting.
Mayor Turner recognized Mr. Mark Kelman who gave a brief presentation on
the 1992 500th Anniversary of the Discovery of the Americas. Mr. Kelman stated
that at the request of Mr. Martin Gonzales they wish to present a Museum of the
Americas which will be located in Corpus Christi, and they are seeking an
official endorsement by the Council So that they can proceed with the
solicitation of funds for this project.
Council Member Rhodes requested a copy of Mr. Kelman's report and Mr.
Kelman stated he would be happy to present the Council with a copy of the
report.
Mr. Richard Gonzalez, 3802 Stirman, presented the Council with some
background information on the needs for the museum.
MICROFILMED
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Regular Council Meeting
March 29, 1988
Page 2
Mayor Turner recognized Mr. Luis Cortez, Vice Mayor of Newark, California,
who is in Corpus Christi on official City business. Mr. Cortez stated that he
is delighted to be here and wished the Council well regarding today's City
business.
Mayor Turner administered the Oath of Office to the following Board and
Commission appointee:
Transportation Advisory Board
Ariel Garcia
* * * * * * * * * * * * * *
Council Member Guerrero arrived at 9:15 a.m.
Mayor Turner called for consideration of Consent Motions 1 thru 8 and
Council Members requested that Items 2 and 8 be withheld for discussion.
A motion was made by Council Member Slavik to approve Motions 1, 3, 4, 5
and 7; seconded by Council Member Strong and passed unanimously.
In reference to Item No. 2 pertaining to the City Service Center Security
Fence Improvements, Phase I, Council Member Slavik referred to the cost of $7.00
per linear feet and inquired about the high price, and Victor Medina,
Engineering Services Director, stated that was the lowest bid the City received;
it is a very reasonable price; and it is an eight -foot fence with three strands
of barbed wire.
In reference to Item No. 8 pertaining to the SFY 1989 South Texas Library
System Grant, Council Member Moss emphasized how important this is to the City
of Corpus Christi and noted that this makes the City's library a major resource
center.
A motion was made by Council Member Pruet to approve Items 2 and 8;
seconded by Council Member Guerrero and passed unanimously.
1. M88-0068
Accepting the Price Field Press Box project, and authorizing final payment
of $993.60 to Environmental Insulation Services, Inc.
2. M88-0069
Accepting the City Service Center Security Fence Improvement project;
granting a three working day time extension; and authorizing final payment
of $2,540.82 to Fencing, Inc. of Texas.
Minutes
Regular Council Meeting
March 29, 1988
Page 3
3. M88-0070
Accepting the Convention Center Parking Lot Expansion project; granting the
contractor a 20 -day time extension; and authorizing final payment of
$44,944.76 to A. Ortiz Construction and Paving, Inc.
4. M88-0071
Adopting guidelines for use of City Hall Facilities.
5. M88-0072
Approving the recommendations and policies of the Board and Commission
Review Committee as tentatively approved by the City Council on March 15,
1988.
6. M88-0073 (Amended later during the meeting - see page 6)
Approving the application by the Auxiliary to the Art Museum of South Texas
to hold the "Art in the Heart of Corpus Christi" festival on April 22-24,
1988, and approving the closing of the following streets on Friday,
Saturday and Sunday, April 22-24, 1988 for said event:
a. Chaparral Street, between Lawrence and Starr streets
b. Schatzel Street, between Chaparral and Mesquite streets
c. Peoples Street, between Mesquite and Water streets
7. M88-0074
Authorizing the City Manager or his designee to apply to the Texas State
Library and Archives Commission for $36,500 in federal assistance, and to
execute all related documents, for conducting a feasibility study and
creating a planning document to be used by the Library Department and the
Corpus Christi Independent School District in providing improved library
services and resources to school age children.
8. M88-0075
Authorizing the City Manager or his designee to execute a grant application
and all related documents for a grant of $735,652 for operation of the
South Texas Library System during the year beginning September 1, 1988.
* * * * * * * * * * * * *
Mayor Turner called for consideration of Consent Resolutions, Ordinances
and Ordinances from previous meetings on Items 9 thru 11.
In reference to Item No 9 pertaining to the Westside Wastewater Treatment
Plant Expansion, Council Member Slavik inquired about why this contract was a
negotiated contract when it was awarded last year.
Minutes
1 Regular Council Meeting
March 29, 1988
Page 4
6
City Manager Garza stated that in selecting professional services, the City
requested proposals and narrowed down the list to engineering firms that could
provide the services. He stated that the list was then brought to the City
Council; the Council approved the list; the Staff negotiated a contract price;
and that is the process the City has been using. He stated that professional
services do not require bidding.
Mayor Turner inquired if the original proposal was for 6 MGD, and City
Manager Garza replied the original proposal that the City was designing was an 8
MGD plant, and Mayor Turner noted that it is important that the City make sure
that the design allows for an easy expansion to an 8 or a 10 MGD should the need
arise.
In answer to a question from the Mayor in reference to Item No. 10
regarding the Submission of Grant Applications to the Criminal Justice Division
of the State of Texas, City Manager Garza stated that at least one of the DARE
programs would be a new program which the Chief is starting that would deal with
school age children and would assign a police officer to actively visit schools
and to start a program which is designed elsewhere and just implemented in
Corpus Christi.
Mayor Turner pointed out that this Criminal Justice Division grant for the
organized crime control unit is virtually funding the entire crime control unit
for the City, and the City is not having to pay for it locally.
In reference to Item No 11 regarding the Texas State Aquarium Site, Mayor
Pro Tem Berlanga inquired if this is part of the Master Plan or if the changes
were made to accommodate the aquarium needs, and Engineering Services Director
Victor Medina stated that the City amended the Master Plan earlier and these are
changes to the Code so that the platting can proceed for the Aquarium
Association.
There were no comments from the audience on these items.
Assistant City Secretary Zahn polled the Council for their votes and the
following were passed:
9. RESOLUTION NO. 20252
AUTHORIZING THE EXECUTION OF AMENDMENT NO. 2 TO THE ENGINEERING SERVICES
CONTRACT WITH URBAN ENGINEERING PROVIDING FOR THE MODIFICATION OF PIANS TO
EXPAND THE WESTSIDE WASTEWATER TREATMENT PLANT TO 6 MGD RATHER THAN 8 MCD;
AND APPROPRIATING $59,000.
The foregoing Resolution passed by the following vote: Turner, Berlanga,
Guerrero, Moss, Pruet, Rhodes, Schwing and Slavik voting, "Aye"; Strong
absent at the time the vote was taken.
Minutes
Regular Council Meeting
March 29, 1988
Page 5
10. RESOLUTION NO. 20253
AUTHORIZING THE SUBMISSION OF GRANT APPLICATIONS TO THE CRIMINAL JUSTICE
DIVISION OF THE STATE OF TEXAS FOR THE NUECES COUNTY ORGANIZED CRIME
CONTROL UNIT, DRUG ABUSE RESISTANCE EDUCATION, AND ENHANCED REGIONAL
IDENTIFICATION UNIT.
The foregoing Resolution passed by the following vote: Turner, Berlanga,
Guerrero, Moss, Pruet, Rhodes, Schwing and Slavik voting, "Aye"; Strong
absent at the time the vote was taken.
11. ORDINANCE NO. 20254
AMENDING THE CODE OF ORDINANCES, SECTION 53-250, SCHEDULE I - ONE-WAY
STREETS AND ALLEYS; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION.
The foregoing Ordinance passed on third reading by the following vote:
Turner, Berlanga, Guerrero, Moss, Pruet, Rhodes, Schwing and Slavik voting,
"Aye"; Strong absent at the time the vote was taken.
* * * * * * * * * * * * *
City Manager Garza noted that there are two people in the audience who
would like to speak in reference to the Consent Motions.
In reference to Item No. 7 regarding the Grant Application for Evaluation
of Library Services to School Age Children, Ms. Alicia Gallegos -Gomez, 1017
Harrison Street, a member of the Library Services and Construction Act
Commission, spoke in support of this item and stated this motion would authorize
the City to submit proposals for the purpose of applying for funds to conduct a
feasibility study, so that the Corpus Christi Public Library and the public
school districts can eventually develop a plan for improving services to school
age children. Ms. Gomez stated that the monies will enable the City and the
school districts to conduct a survey to establish measurable criteria that can
be used to develop a plan that will enhance the ability of the public library
and the school libraries to network their resources and their services. Ms.
Gomez expressed appreciation to the Council for approving Item No. 7.
In reference to Item No. 6 pertaining to the "Art in the Heart of Corpus
Christi" Festival, Ms. Betsy Nogueira noted a correction under Item b regarding
the street closure from Schatzell Street, between Water and Mesquite streets to
Chaparall and Mesquite Streets which will allow access to the MBank parking
garage. Ms. Nogueira noted that they originally had requested street closure to
be mid-afternoon, but since they have the street festival shading designed, they
are requesting the street closures after rush hour at approximately 9:00 a.m.
Ms. Nogueira requested that the four percent be waived because they are
privately handling the trash and cleanup. She invited the Council to attend the
opening ceremony on April 22, at 7:15 p.m. and requested the Council's support
in hosting the street dance.
Minutes
Regular Council Meeting
March 29, 1988
Page 6
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A motion was made by Council Member Rhodes to amend the street change;
seconded by Council Member Slavik and passed unanimously by those present and
voting; Strong absent at the time the vote was taken.
City Manager Garza noted that the Staff did not recommend waiving the four
percent fee and stated that the present ordinance does not allow for the waiving
of the fee.
* * * * * * * * * * * * *
Mayor Turner called for consideration of Item No. 12 pertaining to the
Motion to Amend the Aquarium Lease on the Third Reading and noted that the
additional paragraph simply protects the City should, in the extremely unlikely
event, the Aquarium Association loses its 501(c)3 tax exempt status during the
project.
A motion was made by Council Member Pruet to amend the Aquarium Lease prior
to third reading; seconded by Council Member Schwing and passed unanimously by
those present and voting; Strong absent at the time the vote was taken.
* * * * * * * * * * * * *
Assistant City Secretary Zahn informed the Council that Items 13 and 14
had been prepared as Resolutions and not Emergency Ordinances.
Mayor Turner called for consideration of Item No. 13 pertaining to the
Coliseum Concession Contract.
Assistant City Manager Hennings noted that this item is a recommendation
for approving a contract with Ogden Allied Services Corporation for concession
operations at Memorial Coliseum from May 1, 1988 through January 1, 1990. Mr.
Hennings provided the Council with some background information on this matter
and stated that there was an evaluation team assembled to review the proposals;
four proposals were submitted and two were acceptable -- Ogden and Noble. Mr.
Hennings stated that the recommendation for the Ogden proposal is based on the
analysis that shows the revenues to the City would be approximately $25,000 to
$35,000 more than the revenue under the Noble proposal. He stated that the
primary reason for the difference is an offer by Ogden to promote five concerts
in the Coliseum during the term of the contract. Mr. Hennings stated that the
present concessionaire has an excellent record and this recommendation is not
intended to slight Noble Food Service.
Council Member Guerrero referred to the proposed five concerts and inquired
if they could be specified not to be rock concerts, and Mr. Hennings noted that
the contract does not specify that, but that a representative from Ogden will
address that issue.
Mr. John Lamkin, representing Ogden Allied Services Corporation, noted that
they are based in New York; they have contracts throughout the United States;
Aft
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Regular Council Meeting
March 29, 1988
Page 7
and they are very interested in Corpus Christi. He stated they believe that
doing a good job in the Memorial Coliseum will give them added incentive and
prove to the City that they are a suitable concessionaire for the Convention
Center. He stated that Ogden can bring competition and new investment to the
City and new business to the Coliseum. He stated that they do promote rock
concerts but also promote various other types of acts and mentioned several of
the performers.
Council Member Guerrero inquired if Ogden would be willing to exclude
rock concerts, and Mr. Lamkin replied in the affirmative and noted that they do
understand the concerns regarding rock in this City. He stated that he could
guarantee the Council that they will not promote heavy rock in this facility.
He continued by stating that they will be using all local employees and that
they are interested in interviewing the current management of the Coliseum. He
noted that they will assist in local community development and will bring money
into Corpus Christi.
Mayor Turner noted there are eighteen months left on the present contract
and inquired at the end of eighteen months about a proposal to handle both the
Coliseum and the Convention Center, and Mr. Hennings stated that the timing is
such that both contracts can be combined at that point and advertised as one
contract.
Mayor Turner referred to the Council's intention to support local
businesses and noted this is a golden opportunity to hire a company that is well
known; they have a proven track record; and she has had nothing but rave
letters from people that do business with the current concessionaire. She
stated that she thought the Council needs to start talking about keeping money
in this community by supporting local businesses that have done well. She urged
the Council to consider supporting the Noble group, at least for the eighteen
months of the contract, and then go out for competitive bids.
Council Member Guerrero noted that there is something to be said about New
York based companies and pointed out that the Paramount Group affiliated with
the Sunrise Mall has invested $50 million into this City.
Council Member Pruet concurred with Mayor Turner and noted that if there is
an opportunity to assist the City's local businesses, the Council should support
them. He pointed out that the Noble Company has received good references from
the users and the Staff.
Council Member Rhodes questioned why the City went through this and put the
proposal out for bid. She expressed the opinion that this should have been
discussed beforehand, and that the Ogden Company already has gone through some
expense for the City to turn around and reject it because they want to hire
local people.
Council Member Slavik inquired if the contract is professional or
negotiated, and City Manager Garza stated this is a bid item and noted that the
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Regular Council Meeting
March 29, 1988
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City has to protect the integrity of the bidding process and that when they do
go out for bids, there will be an economical evaluation of the proposals. He
stated that the Staff feels there is a substantial difference between the two
contracts, and there is a better economic proposal from Ogden.
In answer to a question from Council Member Slavik regarding insurance,
City Manager Garza stated that to his knowledge there is not that level of
detail in the proposal. He stated that assuming if the concerts did not take
place, Ogden would have to pay the City a penalty of $45,000 at $9,000 for each
concert they didn't hold and that is part of the contract. He stated that the
City has the guarantee on top of the promise to promote the concerts.
City Manager Garza stated that the Staff is fully aware of the Council's
concern about hiring local businesses but stated that there is a point where it
is healthy to have some outside competition just to keep things on an even keel.
He pointed out that at one time, the Noble Company was also new to the City.
Mayor Turner inquired why this could not be delayed until the City goes out
for the dual bid, and City Manager Garza replied it is economically more
advantageous to the City to go with the Ogden contract at this time than to
wait.
Council Member Guerrero pointed out that you cannot deny the strapped
condition that the City is in economically and stated he would like to get a
commitment from Ogden as far as a base in Corpus Christi. He stated that as
much as he wanted to go with a local company and one with a proven record, it is
hard to deny the fact that Ogden has a superior bid, and stated that the Council
has a commitment to the people of the City to bring them the best possible
service that they can.
Mayor Pro Tem Berlanga inquired about the other proposals, and Assistant
City Manager Hennings stated that the Council was provided information on the
other proposals which included a narrative on each of the four proposals, an
explanation of why they were rated lower and a table showing the grading
criteria. Mr. Hennings stated that the Staff came to the conclusion that Ogden
and Noble were the two viable bidders to be considered.
Mr. Bobby Smith, Speedy Food Service, stated he is from the City of Corpus
Christi and would like to serve the City. He introduced people affiliated with
his company and stated that they would like an opportunity to serve the City.
Mr. Smith pointed out that he is offering the City 42 percent and that Speedy
Food Service is not a small company.
In answer to a question from Council Member Slavik, Mr. Fred McKane of
Denton, Texas, another representative of Speedy Foods, provided some background
information on himself and noted that their company has a proven record; they
serve about 40,000 meals per day; and they are not a small company.
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Regular Council Meeting
March 29, 1988
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Council Member Slavik expressed concern over this matter noting that she
would like to hire local businesses and that she hoped the information provided
by the Staff is correct. She stated she would like to delay this for another
week so that the Council could study this further.
Mr. Newt Noble, the existing concessionaire, 15432 Salt Cay, stated that
there is an excellent staff at the Coliseum and referred to the events held
during the last two years. He questioned the value of five more concerts and
stated that the profits from his concession would stay in the community. He
stated he buys all his supplies here; he lives here; the City may not make as
much off his bid; but the overall effect of his business on the community is
really larger.
Mr. Philip Rosenstein, 949 Bobalo, concurred with Mayor Turner and Council
Member Pruet and stated that the contract should be awarded to a local business.
Council Member Guerrero pointed out that the Ogden company would not take
money out of the state; they will put money into the City; and they would not be
making a bid here if they did not think they could make money and turn it
around.
Council Member Slavik reiterated her concern regarding local bidders and
made a motion to delay this matter a week. The motion was seconded by Mayor Pro
Tem Berlanga and failed to pass by the following vote: Slavik and Berlanga
voting, "Aye"; Turner, Guerrero, Moss, Pruet, Rhodes, Schwing and Strong voting,
"No."
Assistant City Secretary Zahn polled the Council for their votes and the
following Ordinance was passed:
13. RESOLUTION NO. 20255
AUTHORIZING THE EXECUTION OF A CONTRACT WITH OGDEN FOOD SERVICES
CORPORATION OF TEXAS FOR CONCESSION OPERATIONS AT MEMORIAL COLISEUM.
The foregoing Resolution passed by the following vote: Berlanga, Guerrero,
Moss, Rhodes and Schwing voting, "Aye"; Turner, Pruet, Slavik and Strong
voting, "No."
* * * * * * * * * * * * * *
Mayor Turner called for consideration of Item No. 15 pertaining to the
third reading of the Aquarium Lease Agreement.
Mayor Pro Tem Berlanga expressed concern regarding the bidding for the
general contractor of the aquarium, noting that he has received numerous calls
and letters stating that the bidding was not competitive. Mr. Berlanga inquired
how the contract for the aquarium came about.
_Minutes
I Regular Council Meeting
March 29, 1988
Page 10
L
Mr. Jack Solka, 6262 Weber, Vice President of the Aquarium Society, stated
that there was a concern in finding out that the $10 million structure of the
aquarium was really going to be $15 million. He stated that the extra funds
were not available, either from the City or privately, so they felt it was more
reasonable to retain a general contractor to perform the work. He stated that
the Aquarium Society is a private, non-profit organization, and it has the
capability to go out for bids or negotiate a contract. He stated that the
advantage of a negotiated contract in selecting a general contractor before the
final drawings are complete allows an ongoing input into the preparation
process. He stated he felt very strongly that without that type of contractor
input into this building, they would not have the type of control of the
ultimate price as they do at this time.
Mr. Solka continued by stating that this was not a bidding situation and
was a selection based on qualifications. He noted that they ran a prominent
newspaper ad two times, and it was obvious that they were searching for a
general contractor that would be interviewed and selected based on all kinds of
good qualities. He stated that last summer after a great deal of search, they
received eight different proposals and they reduced the list to four firms
selected to be interviewed. He stated they asked for City participation in the
interviewing process and they selected the firm of Durden and Fulton. Mr. Solka
then read excerpts from the contract and pointed out that under this agreement,
they are forced to go out and seek competitive bids for certain phases of the
work, excluding specialty items. Mr. Solka noted that 95 percent is open for
competitive bidding.
Mayor Pro Tem Berlanga expressed appreciation to Mr. Solka for his
explanation and suggested that the method that was used in selecting the
contractor should be made krown to the public.
In answer to a question from Mr. Berlanga, Mr. Solka stated that it is
established in the contract that the fee that the general contractor gets for
overhead, profit, etc., is five percent of the total cost of the aquarium
project.
Council Member Slavik inquired why the City is being asked to sign the
agreement before the exact cost of the price of the building is known.
Mr. Arthur Zeitler, Vice President of the Aquarium Association, stated
there is a procedure in approving the lease and attempting to deal with the
concerns of moving the project forward as quickly as possible. Be stated that
the actual cost of the building will be somewhat more than $10 million; they
anticipate approximately $11.1 million; the Aquarium Association is putting up
all the money in excess of the $10 million; the City is putting up the $10
million plus the interest on the loan; and the other million plus dollars will
come from the Aquarium Association. Mr. Zeitler stated that the City will
sell the bonds during the next two months, and the Aquarium Association will be
prepared to put their money in escrow when the City has its bond proceeds. He
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Regular Council Meeting
March 29, 1988
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stated that they will be prepared to put up the excess at the end of May when
they have the fixed price. He stated that the City does not have to put the
money up until they know the price and know that the Aquarium Association has
the difference. He stated that they know they have the difference and that is
why they are prepared to sign the contract.
Council Member Slavik inquired what they would do if the cost were $13
million, and Mr. Zeitler stated they have already received estimates at the
design development stage based on the drawings from the contractor; they have
some additional money that they would rather spend on other items; but that they
are in a position to supplement the cost if it is in excess of $11.1 million.
He stated that they do not have a problem because their information indicates
that will not be necessary.
Council Member Schwing stated that when a cost plus contract is negotiated,
there is no incentive to keep the costs down and inquired what safeguards or
guarantees they have so that won't happen, and Mr. Zeitler stated that this is
not a cost plus project; they negotiated a profit with the contractor; and they
have to accept that they will get a maximum guaranteed price. He stated that
consequently, they have to approve that price and they will be doing that prior
to construction.
In answer to a question from Council Member Schwing, Mr. Solka stated that
95 percent of this project will be competitively bid; the incentive for the
subcontractors is that they want to get the job. He stated that they, as the
owners, are accepting the bids and will be reviewing the bids. Mr. Solka stated
that the only thing that is not negotiable is the fee that they have negotiated
with the general contractor which includes all his overhead and profit of five
percent.
Mr. Andrew Lehrman, a local attorney, stated that he has been asked to
speak on behalf of some contractors. He stated the position of the contractors
is not an anti -aquarium vote; they are in favor of it; and they feel the
non-competitive bidding is unfair to themselves and the taxpayers. Mr. Lehrman
referred to the small advertisement and stated that was really the initiation of
the problem. He stated that one part of the process has already been put out
for bids, and that it does not make sense that the whole process will not be
done by competitive bidding. Mr. Lehrman stated that without the commitment of
the City of $10 million worth of bonds, this project would not get off the
ground, and that this is a situation that the Aquarium Association is relying
exclusively on the City. He inquired why the advertisements were not put into
the regular trade journals that all competitive bids go in because that would
have given everyone an opportunity.
Mr. Lehrman referred to the lease and stated that the interim costs of
financing were to be funded through the interest that was earned in the $IO
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1 Regular Council Meeting
March 29, 1988
Page 12
million being placed in escrow by
stated that the City has a strong
to have competitive bidding. He
taxpayers, they ought to be given
City Council is really concerned
for the aquarium. Mr. Lehrman
representing and stated that they
that the City Council authorize
bidding.
•
the City when the bond money is received. He
interest in this and it would just make sense
stated that the contractors feel that for the
a chance to bid on this. He inquired if the
about getting the best deal for the taxpayers
mentioned several of the contractors he is
feel to insure the maximum amount of savings,
this project to be subject to competitive
In answer to a question from Council Member Strong, Mr. Lehrman noted that
one of the concerns is that the Aquarium Association, and not the City, is
receiving the bids, and that there is no incentive for the general contractor.
Mayor Turner inquired what Mr. Lehrman would advocate at this point, and he
replied that he would suggest that it be in the lease since it specifically says
that the City is requiring competitive bids from competent fully bonded
contractors, noting that it is plural, and he was of the opinion that because of
the amount of money involved, the City should require that the general
contractor be selected on a competitive bid basis.
In answer to a question from Council Member Strong about going out for bids
on the general contractor, Mr. Lehrman stated that it is the decision of the
City Council to include in the lease that the bidding process should be
competitive.
Council Member Strong expressed concern regarding the contract and stated
that the way it is set up says that the Aquarium Association is building the
building and upon completion of that, the City will buy that building. She
stated that the price that the City is going to pay has already been
established, and the City has guaranteed the taxpayers how much the City is
going to spend on the building. She stated she has a problem with going back to
the Aquarium Association and telling them that the City is going to take over
the bidding process on their building in advance of having bought it. She
stated that she thought that would be inappropriate.
Council Member Schwing inquired who would be approving the contracts, and
Mr. Solka stated it would be one or more from the architectural firm, the
contractor, and the owner, and Mr. Schwing inquired if they would consent to
having someone from the City Staff sit in to guarantee that the bidding process
is done. Mr. Schwing also asked Mr. Lehrman if that would satisfy his clients.
Mr. Solka and Mr. Lehrman replied in the 'affirmative, and Mr. Lehrman stated he
will discuss it with his clients.
Mayor Turner requested that the City Manager designate the individual to
serve in that capacity.
Mr. Irving Dietz, 455 Miramar, referred to and read an excerpt from the
Minutes of the March 9 Council Meeting regarding competitive bidding. Mr. Dietz
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Regular Council Meeting
March 29, 1988
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inquired when the final plans and specifications for the aquarium will be
completed, and Mr. Bob Shackelford, 3425 Tahiti, Construction Manager for the
Aquarium Association, stated that there are two sets of plans; they will have
the foundation plan and the structure ready for bidding at the end of May and
will have the price by then; the completion of the plans and specifications
regarding electrical, mechanical, etc., will be completed in August; and then
they will send out bid packages and will have the final guaranteed maximum price
in September or October.
In answer to a question from Mr. Dietz, Mr. Shackelford stated that they
will have the initial guaranteed maximum price that will be finalized in May and
the price will never be more than the initial guaranteed maximum price.
Mr. Dietz referred to the financial statement of the Aquarium Association
and stated April 6 was the anticipated date that the guaranteed maximum price
would be determined. He referred to the completion date and stated the
taxpayers are paying around $20 million to obtain the aquarium one year earlier.
He stated the City has no assurance in this contract that the aquarium will be
completed a year earlier. Mr. Dietz inquired what benefit will be realized from
the $20 million that it will eventually cost the taxpayers.
Assistant City Manager Hennings stated that the lease agreement, the
purchase agreement and the escrow agreement will provide an outside limit of 35
months for the completion of the project; this is related to the federal tax law
which requires the City to expend these monies within three years in order to
maintain their tax exempt status. He stated that the agreement does not specify
how that is to be done.
Mr. Zeitler stated that drawings will be ready by April 6; they will be
getting back prior to the end of May; and prior to that time,they and the City
have to put the money up to get the initial guaranteed maximum price. He stated
that they will have to have that price prior to putting up the money at the end
of May. He stated that they have a design plan that provides for a two-year
construction time, and there is a provision in the construction contract that if
there is a delay, there will be a penalty for the contractor. Mr. Zeitler
pointed out that the taxpayers are only committed to the $10 million plus the
interest, and any excess savings or expenses beyond the $10 million is the
Aquarium Association's. He stated that the City is only committed to a specific
amount of money.
Council Member Slavik referred to the new federal tax law affecting the
City and inquired if this were not constructed within 35 months if the City
would be out of it, and Mr. Zeitler replied that the City would be out of it,
and that the Aquarium Association has to complete the building.
Mr. Dietz referred to the two-year completion date and stated that is not
in the contract, and Mr. Solka stated it is part of the construction contract,
and Assistant City Manager Hennings stated that the agreement calls for the
Alba
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Regular Council Meeting
March 29, 1988
Page 14
contract to be completed in a timely manner according to the construction
contract, and that the construction contract will have a specified completion
time in it.
Mr. J. E. O'Brien, 4130 Pompano, inquired if the projected aquarium will
turn into a South Texas Nuclear Plant and referred to Page 25 of the contract.
He stated that he thought there should be a cap as to the amount of public funds
that the City is going to put into this project.
Council Member Slavik stated that she wishes for the Aquarium Association
the very best in its private fundraising efforts to maintain and expand the
Texas State Aquarium, and they should not expect any future City public funding,
other than the City's current commitment to the project. She stated that the
purpose of this $10 million grant is to expedite construction of the project and
to act as a catalyst just to get it started. She stated it is now up to the
private sector to keep it going and to expand it, which our citizens and
taxpayers are expecting the Aquarium Association to work hard to accomplish.
She stated it won't be easy, but the wonderful results will be worth the
effort.
Assistant City Secretary Zahn polled the Council for their votes and the
following Ordinance was passed on third reading:
15. ORDINANCE N0. 20257
AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT WITH THE TEXAS STATE
AQUARIUM ASSOCIATION FOR THE AQUARIUM PROJECT; AND PROVIDING FOR
PUBLICATION.
The foregoing Ordinance passed on third reading by the following vote:
Turner, Berlanga, Guerrero, Moss, Pruet, Rhodes, Schwing, Slavik and Strong
voting, "Aye."
Mr. Zeitler stated that the Aquarium Association accepts the City's
challenge and commits to deliver a top quality facility which everyone will be
proud of.
Mayor Turner expressed appreciation to the Aquarium Association and stated
that this is one of the most exciting projects to come to Corpus Christi.
* * * * * * *.* * * * * *
Mayor Turner called for consideration of Item No. 14 pertaining to the City
Hall and Utilities Building Demolition.
Mr. Donald Greene spoke in opposition to the demolition and presented a
proposal and displayed slides regarding an adaptive economic reuse for the
buildings by transforming the municipal structures into a festival market by
painting them white and building a connecting atrium. He stated it could serve
,Minutes •
Regular Council Meeting
March 29, 1988
Page 15
as a tourist and recreational use producing income for the City
stated these are the last public facilities on the waterfront and
gone, they are not going to be able to build anything else there.
may be the City's last chance to have a festival market along the
noted that the building is serviceable and strong enough to be
Greene stated that it would attract visitors from the aquarium and
be of economic benefit to the community.
Mr. Greene
once they are
He stated it
bayfront, and
reused. Mr.
that it would
Mayor Turner noted it is an interesting proposal for the shoreline; it is a
very ambitious project; and inquired about the funding and the cost, and Mr.
Greene stated it would be about four to six million dollars and referred to the
formation of a tourism development foundation which would operate much like the
Corpus Christi Industrial Development Foundation.
Mr. Greene stated that he is not proposing a preservationist movement but
is looking at an economic situation. He stated that if it was the desire of the
Council, the Economic Development Corporation would look at the proposal to see
if it is feasible.
Mayor Pro Tem Berlanga stated that he is going to support the people who
want to save the building and noted that it is on valuable property and at an
outstanding location. He noted that there will not be any trouble in finding
people to rent the building.
The following people spoke in opposition to the demolition: Mr. 0. K.
Smith, 6230 South Padre Island Drive, who recommended that a Shoreline City Hall
Evaluation Task Force be formed and suggested that the building could be
utilized as a site for the Regional Transit Transfer Exchange Point; Mr. John
Wright, 246 Rosebud, requested that demolition be delayed for 90 days in order
to decide on a use for the building; the President of the Westside Business
Association; Mr. Jim Rome, 218 Chandler Lane, requested a 90 day delay; Ms. Ann
Spencer, 4921 Trinity Drive, requested that the building be made into a
multi -cultural museum; Mr. Leon Loeb, 3845 Ocean Drive, spoke in support of
a feasibility study; Ms. Janet Rice, 118 Southern, President of Preservation
Corpus Christi, Inc., requested a demolition delay of the City Hall to give her
group time to seek users for the building. She stated that it is a cultural
landmark and an economic asset to the community; the renovation cost is
practical; and the building could be rented at $75.00 per square foot per month.
She further stated that the Colley Associates will donate their time to prepare
preliminary design drawings for individuals and groups wishing to utilize the
facility.
In answer to a question from Council Member Slavik as to whether the
Preservationists would work with Donald Greene, Ms. Rice stated they would be
happy to work with him or anyone else in order to find a use for the building.
A Mr. Roy Byer who is temporarily living in Flour Bluff spoke in opposition
to the Bayfront Plan to change the shoreline.
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Regular Council Meeting
March 29, 1988
Page 16
•
The following people spoke in support of the demolition: Ms. Pat
Duaine, 4909 Branscomb Drive; Ms. Gwen Bryant, 5029 Merganser Drive, recommended
a military park be placed on the property dedicated to the veterans; and Mr.
Claude D'Unger, 201 Del Mar, stated that the real issue is if the City allows
public/private ventures in either one of those buildings, they will be setting a
precedent and it will open up the rest of the shoreline median.
A motion was made by Council Member Slavik to recess the Council Meeting
for lunch at 12:09 p.m.; seconded by Council Member Strong and passed
unanimously.
* * * * * * * * * * * * *
Mayor Turner reconvened the Council Meeting at 2:00 p.m.
Mayor Turner recognized Mr. Garry Mauro, Land Commissioner, who stated he
is here regarding Texas Veterans Awareness Week. He stated that they are
increasing their maximum loans for home improvements to Texas veterans from
$15,000 to $17,500 at 10} percent interest and urged Texas veterans to take
advantage of their program. Mr. Mauro presented the Mayor and Council Members
with a Certificate of Recognition of Appreciation for Dedicated Service to the
Veterans of the State of Texas. Mr. Mauro noted that they have set aside $50
million for this area in loans and stated that they loan over $100 million a
year to Texas veterans.
Council Member Schwing personally expressed appreciation to Mr. Mauro for
the loan program, noting that he was one of the first people to take advantage
of the home improvement loan.
* * * * * * * * * * * * *
Mayor Turner referred to Item No. 14 pertaining to the City Hall and
Utilities Building Demolition.
Council Member Strong arrived at the meeting at 2:40 p.m.
The following people spoke in opposition of the demolition: Mr. Miguel Pro,
1611 Ocean Drive, requested postponement of the demolition; Mr. Scott Johnson,
4325 Walton Place, requested 90 -day delay; Mr. John Pennigan, 655 Castle Park
Drive, recommended donating the building for a veterans museum; Mr. Bill
Hoelscher, 434 Atlantic; and Ms. Catherine Munsenberger.
The following people spoke in support of the demolition: Ms. Pat Parr, 1038
Monette, representative of the League of Women Voters; Ms. Marjorie Morrill,
Trinity Towers; Mrs. Robert E. Clark, 3902 Mueller Street, stated she is
heartily opposed to any buildings on the Shoreline, particularly commercial
buildings; Ms. Joanne McNeil, 845 Egyptian; Mr. Irving Deitz, 455 Miramar,
inquired about the disposition of the fountain and plaque located on the
property, and City Manager Garza stated that has not been addressed yet and
s
Minutes
Regular Council Meeting
March 29, 1988
Page 17
noted that the fountain is inoperable; Mr. Charlie Blum, Chairman of the Corpus
Christi Park and Recreation Board, stated that the Council needs to decide
whethee or not they want a structure on the bayfront and noted that a new
structure would cost about $60.00 a square foot to build and that to restore the
old structure would cost about $175.00 a square foot; Mr. Butch Escobedo, 4609
Haverhill; and Mr. Jack Graham, 7005 Ashdown.
Assistant City Secretary Zahn polled the Council for their votes and the
following Ordinance was passed:
14. ORDINANCE NO. 20256
AUTHORIZING THE EXECUTION OF A CONTRACT WITH OLMOS EQUIPMENT COMPANY, INC.
FOR THE DEMOLITION OF THE CITY HALL AND UTILITIES BUILDING; AUTHORIZING
MAXIM ENGINEERS TO PERFORM AIR MONITORING DURING ASBESTOS REMOVAL FOR A FEE
NOT TO EXCEED $16,000; AND APPROPRIATING $168,000.
The Charter Rule was suspended and the foregoing Ordinance passed by the
following vote: Turner, Moss, Pruet, Rhodes and Strong voting, "Aye";
Berlanga, Guerrero, Schwing and Slavik voting, "No."
* * * * * * * * * * * * *
Mayor Turner called for the City Manager's Report.
City Manager Garza requested that five minutes be set aside at the
beginning of next week's Council Meeting to recognize a gentleman who is hearing
impaired and who would like to recommend a Resolution that would require. City
employees to render aid in emergency situations to the public, and the Council
gave their concurrence.
Mr. Garza noted that as a result of this morning's vote regarding the
aquarium, a Resolution will be brought to the Council next week so that the City
can publish the notice on the intent to sell CO's. He stated that it is a legal
step which is required before the City can sell the bonds. Mr. Garza stated
that a presentation will be made to the rating agencies in New York regarding
the proposed bond sale for the Reinvestment Zone and requested that the Mayor
and one Council Member attend the session which will be on April 14. He stated
that they will leave for New York on April 13 and return on April 15.
City Manager Garza presented the Council his goals for the period March 8 -
June 8, 1988.
Regarding the Mayor's update, Mayor Turner requested direction from the
Council regarding a presentation by Mr. Terrell Blodgett, and it was the
consensus of the Council that Mr. Blodgett be requested to give the
presentation.
Mayor Turner requested liaison and other reports from the Council.
'Minutes
Regular Council Meeting
March 29, 1988
Page 18
Regional Transit Authority - Council Member Moss noted that the RTA will
have additional hearings regarding the elderly and handicapped transportation.
He stated there seems to be a problem because the public that uses it is having
trouble getting used to having to pay the token amount for it.
Aquarium - Council Member Guerrero noted that the Council in their vote
that morning recognized the importance of this project to the community and
commended them for going thru with the project.
Botanical Gardens - Council Member Slavik noted that there will be a
fundraising movie premiere of a Robert Redford movie on Wednesday, April 20 at
Cinema 6 and encouraged the Council to attend.
Downtown Revitalization - Mayor Pro Tem Berlanga noted that their new
Director will take office on April 4 and there will be a celebration on April 7.
Economic Development Corporation - Council Member Schwing noted that at the
last EDC meeting they passed a Resolution asking the City Council to consider
some things that would help them attract and keep business. He inquired if it
could be scheduled and discussed at a workshop meeting. Mr. Schwing also
requested an informal schedule on the City's efforts to privatize some of the
services that they provide.
Council Member Rhodes referred to "Keep America Beautiful" and noted that
there will be a recycling kickoff on April 5 at the fire station on Morgan and
the money from the cans will be to provide assistance for burn victims at
Memorial. She invited all the Council Members to attend this kickoff which will
be held during the lunch hour.
Convention and Visitors Bureau - Council Member Pruet requested the Staff
to brief the Council on the Attorney General's ruling on the City's exemption
for 501C charitable groups regarding the hotel occupancy tax.
City Attorney Hal George stated that there was an Attorney General's ruling
that clarified that the City is not exempt from the hotel/motel occupancy tax.
He stated that the staff passed that on to Chris Davis at the Convention &
Visitors Bureau.
Council Member Pruet noted it will be a major impact on the City and
requested a report pertaining to last year, and City Manager Garza stated that
he has instructed the Staff on what needs to be done in terms of amending the
City's ordinance and notifying the Hotel Association and various hotels and
motels.
Council Member Slavik noted that she would like to have the Staff look at
private/public partnerships in general to see how the City could demand
financial viability from the private partners, and that a complete financial
statement of the private partner be required to be given to the City Council at
the beginning of serious negotiations with the City and well before any
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Regular Council Meeting
March 29, 1988
Page 19
agreements are signed by the City. She stated she does not want to have another
situation which occurred during the morning of not automatically receiving their
financial statement of their past operation. She stated this should be done
automatically to protect the City's interest when they spend taxpayers' dollars
on these projects.
Mrs. Slavik requested that the Staff work on a plan to try to establish
more specific times for controversial items that are placed on the agenda so the
public will know if it will be morning or afternoon, or early morning or early
afternoon.
City Manager Garza noted that just about every City in the Country attempts
to do that, but it is difficult to control the length of discussion time on
controversial items.
Council Member Slavik referred to the new street lighting ordinance and
inquired why it has not been brought before the Council, and Assistant City
Manager Garza replied that he received the draft on Friday; he has to review it
in terms of its economic implications; and then it will be brought before the
Council.
Council Member Pruet stated that he would like the Staff to look into the
water tank painting on Brawner Parkway. He referred to complaints he received
regarding overspray and lead in the paint.
Council Member Rhodes noted that she brought back cards from the National
League of Cities Convention which she attended in Washington and requested that
the Council Members fill out the cards and send them to national representatives
saying how much the community block grant money means to the community.
Mayor Turner requested a report on the City's water supply for the long and
short term needs of the community and an update on Choke Canyon and Lake Corpus
Christi.
Council Member Schwing asked about the possibility of looking into the
purchasing requirements of the City to possibly lower the ceiling of $10,000 for
solicitating bids for the purpose of increasing the opportunity for the City's
small businesses to compete and share in some of the tax dollars the City has to
spend.
City Manager Garza stated that the Staff will look into that but stated
that one of the reasons that the City went to the $10,000 limit was to reduce
the administrative load on the purchasing staff. Mr. Garza pointed out that
there is a possibility it would cost the City more.
Council Member Moss referred to a problem at the Amphitheater at Cole Park
and noted that roofing materials have been stored on the roof for about ninety
days, and City Manager Garza noted he will look into this matter.
AUL
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Regular Council Meeting
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* * * * * * * * * * * * *
6
Mayor Turner called for petitions from the audience on matters not
scheduled on the agenda.
Mr. Eddie Savoy, 1518 Dove, noted that there is a problem in Flour Bluff
with the circulatory streets of Matlock, Compton and ::nickerbocker. He stated
they were assured by the former City Manager that they would be completed before
the construction started on the freeway.
Council Member Slavik inquired about the status and Assistant City Manager
Garza provided an explanation.
Mr. Charlie Blum, Chairman of the Park and Recreation Board, expressed
appreciation to the Council for their earlier action to assist in the
development of a Bayfront Park. He requested permission to proceed with the
final plans on the park. He stated that they will provide the Council with a
plan in 90 days and then obtain direction from the Council, and Mayor Turner
noted it would be helpful if he would provide the Council with some sort of
outline on the various groups or individuals that they intend to solicit input
from. She requested that the Council be given a general idea of how they are
going to proceed.
Xavier Villarreal, 6409 Revolution, a Boy Scout representing Troop 232
Scouts of America, stated they are working on a citizens and national merit
badge and one of their requirements was to attend a Council Meeting.
There being no further business to come before the Council, on motion by
Council Member. Slavik, seconded by Council Member Rhodes and passed unanimously,
the Council Meeting was adjourned at 3:25 p.m. on March 29, 1988.
* * * * * * * * * * * * * * *
6
I HEREBY CERTIFY that the foregoing is a true and correct copy of the
Minutes of the Regular Council Meeting of the City of Corpus Christi of March
29, 1988, which were approved by the City Council on/////7777April 5, 1988.
WITNESSETH MY HAND AND SEAL, this the day of
Arman doVChapa, City Secrery
City of Corpus Christi
Betty Turn r, MAYOR