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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 linutes 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 i 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 Hinutes 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 4inutes Regular Council Meeting March 29, 1988 Page 8 s 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. AlliMinutes Regular Council Meeting March 29, 1988 Page 9 a 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 SAinutes Regular Council Meeting March 29, 1988 Page 11 a 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 tinutes 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 Minutes Regular Council Meeting March 29, 1988 Page 13 a 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 Alnutes • 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. alkiinutes 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 Allbminutes 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 1inutcs Regular Council Meeting March 29, 1988 Page 20 * * * * * * * * * * * * * 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