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HomeMy WebLinkAboutMinutes City Council - 12/18/2001I 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 December 18, 2001, which were approved by the City Council on January 8, 2002. WITNESSETH MY HAND AND SEAL, this 8th day of January 2002. Armando Chapa City Secretary SEAL t r 7 MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting December 18, 2001 1:08 p.m. PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Jesse Noyola Council Members: Brent Chesney Javier D. Colmenero Henry Garrett Bill Kelly Rex A. Kinnison John Longoria* Mark Scott City Staff: City Manager David R. Garcia Deputy City Manager George Noe City Attorney James R. Bray Jr. City Secretary Armando Chapa Recording Secretary Rachelle P. Ramon Mayor Neal called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Council Member Chesney and the Pledge of Allegiance to the United States flag was led by Council Member Colmenero. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Neal called for approval of the minutes of the regular and joint Council meetings of December 11, 2001. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * * * * Mayor Neal called for consideration of the consent agenda (Items 2-18). Council members and an audience member requested that Items 6, 13 and 14 be discussed. City Secretary Chapa polled the Council for their votes and the following were passed: 2. M2001-474 Motion approving a supply agreement with Neptune Technology Group Inc., Tallasee, Alabama, for 2,638 cold water -displacement type and turbine -type water meters in accordance with Bid Invitation No. BI -0174-01 based on low bid, low bid meeting specifications and best bid for an estimated annual expenditure of $114,355. The term of the supply agreement will be for twelve months with an option to extend for up to two additional twelve-month periods subject to the approval of the supplier and the City Manager or his designee. Funds have been budgeted in FY2001-2002 by the Water Department. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 3. M2001-475 Motion authorizing the City Manager or his designee to execute a construction contract with Minutes - Regular Council Meeting December 18, 2001 Page 2 Environmental Specialities International Inc., of Baton Rouge, Louisiana, in the amount of $1,755,778.35 for the J.C. Elliott Landfill Sector 9 liner improvements and final cover system installation -Phase 2. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 4. M2001-476 Motion authorizing the City Manager or his designee to execute a construction contract with Bay Area Contracting & Construction Inc., of Corpus Christi, Texas, in the amount of $80,047 for the Zavala Senior Center drainage improvements. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 5. ORDINANCE NO. 024704 Ordinance abandoning and vacating a 2,308.71 -square foot portion of a 10 -foot wide, utility easement out of Block CR, Levek Tract; requiring the owner, Kimco Realty Corporation, to comply with the specified conditions and replat the property within 180 days at owner's expense. An emergency was declared and the foregoing ordinance passed as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 7. RESOLUTION NO. 024705 Resolution authorizing the City Manager or his designee to execute a three-year agreement with Fairway Systems Inc. to provide software licensing and support to the City's two golf courses. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 8.a. M2001-478 Motion authorizing the City Manager or his designee to accept additional grant funding in the amount of $7,900 from the Executive Office of the President, Office of National Drug Control Policy, to support the Police Department's role in the Texas Coastal Corridor Initiative in the Houston high-intensity drug trafficking area. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. z riTr Minutes - Regular Council Meeting December 18, 2001 Page 3 8.b. ORDINANCE NO. 024706 Ordinance appropriating $7,900 in the No. 1050 Federal/State Grants Fund from the Executive Office of the President, Office of National Drug Control Policy to support the Police Department's role in the Texas Coastal Corridor Initiative in the Houston high- intensity drug trafficking area. An emergency was declared and the foregoing ordinance passed as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 9.a. ORDINANCE NO. 024707 Ordinance appropriating $103,495 from the Unreserved Fund Balance in the No. 9010 Crime Control and Prevention District Fund and amending the FY2001-2002 Budget, adopted by Ordinance No. 024528, to increase appropriations by $103,495 in the No. 9010 Crime Control and Prevention District Fund for the purchase of five police vehicles. An emergency was declared and the foregoing ordinance passed as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 9.b. M2001-479 Motion approving the purchase of 44 police package sedans in accordance with Bid Invitation No. BI -0036-02 from Padre Ford, Corpus Christi, Texas based on low bid for a total of $910,756. Thirty-eight (38) of the sedans are replacements and six (6) are additions to the fleet. Funding is available from the FY2001-2002 Capital Outlay Fund and the Crime Control and Prevention District Fund. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 10. RESOLUTION NO. 024708 Resolution authorizing the City Manager or his designee to submit a grant application in the amount of $60,180 to the State of Texas, Criminal Justice Division for Year 3 funding available under the Victims of Crime Act (VOCA) Fund for the Police Department's Family Violence Unit. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 11. RESOLUTION NO. 024709 Resolution authorizing the City Manager or his designee to submit a grant application in the i T 1 Minutes - Regular Council Meeting December 18, 2001 Page 4 amount of $88,435 to the State of Texas, Criminal Justice Division for Year 3 funding available under the Violence Against Women Act (VAWA) Fund for the Police Department's Family Violence Unit. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 12. RESOLUTION NO. 024710 Resolution authorizing the City Manager or designee to submit a grant application to the U.S. Bureau of Reclamation Water Conservation Field Services Program in the amount of $20,468.75 for the purchase of educational program kits entitled "Learning to be Water Wise." The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 15. ORDINANCE NO. 024712 Ordinance amending the Code of Ordinances, Chapter 53 - Traffic, Section 53-252, Schedule III - Parking Prohibited at All Times on Certain Streets, by prohibiting curbside parking at all times on Santa Fe Street between Meldo Park Lane and Robert Street; and providing for penalties. The foregoing ordinance passed on second reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 16. ORDINANCE NO. 024713 Ordinance amending the Code of Ordinances, Chapter 53 - Traffic Section 53-254, Schedule V, by revising the speed limits on the following street sections; and providing for penalties: on Whitecap Boulevard, reduction from 40 MPH to 35 MPH between a point 1,000 ft. west of Cruiser Street to Isabella Court; on McKinzie Road (FM3386), revising the existing speed limits to the following: 50 MPH to 45 MPH, from a point approximately 620 ft. north of Kingsbury Drive to a point approximately 1,050 ft. south of Haven Drive; 50 MPH to 60 MPH, from a point approximately 1,050 ft. south of Haven Drive to the south city limit. The foregoing ordinance passed on second reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 17. ORDINANCE NO. 024714 Ordinance amending Section 55.73 of the Code of Ordinances, City of Corpus Christi, regarding water service on Mustang and Padre Islands. T T ii Minutes - Regular Council Meeting December 18, 2001 Page 5 The foregoing ordinance passed on second reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 18.a. M2001-481 Motion to amend prior to second reading the proposed ordinance amending Article 11, "AB" Professional Office District Regulations, and Article 33, Permits, Plats and Filing Fees of the Zoning Ordinance. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 18.b. ORDINANCE NO. 024715 Ordinance amending the Zoning Ordinance by amending Article 11, "AB" Professional Office District Regulations, by revising Section 11-2 Use Regulations; by amending Article 33, Permits, Plats and Filing Fees, by revising Section 33-1.03 Conditional Sign Permit - "AB" District. The foregoing ordinance passed on second reading, as amended, as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 6, utility revenue enhancement services. Council Member Kelly asked about revenue projections from using these services. City Manager Garcia replied that the company will survey the city's accounts to determine areas of lost revenue of which staff is currently unaware (unmetered services, etc.). He said the company's fee is 50% of the revenue that they find for 36 months. The City Manager added that it is possible the provider will find customers who are being overcharged, but it should not be a large amount. He said for the most part the communities utilizing these services have realized revenue increases, sometimes substantial increases. City Secretary Chapa polled the Council for their votes as follows: 6. M2001-477 Motion authorizing the City Manager or his designee to execute a contract with Utility Revenue Management Company Inc. of Houston, Texas, to provide utility revenue enhancement services for a term of thirty-six months in consideration of payment up to 50% of increased revenues, based on total amount of increased revenues collected. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. Minutes - Regular Council Meeting December 18, 2001 Page 6 Mayor Neal opened discussion on Item 13, beach parking fee policy. He asked about a narrow strip of land near Newport Pass between the city limits of Corpus Christi and Port Aransas. Assistant City Manager Tom Utter explained that cleaning of that area will be the same as in Padre Balli Park, which is owned by the county. As a result, it will be the county's responsibility to clean it. The Mayor asked why the Newport Pass area was not annexed. Mr. Utter said it was left out in the previous annexation (not the one approved last week) because the land is principally owned by the county. He said there is a small portion of beach in front of private property. *Council Member Longoria arrived at 1:18 p.m. City Manager Garcia added that staff is reconsidering their decision not to annex it because there may be some advantages to the land being inside the city limits. The Mayor asked if the land can be added into the annexation program. Mr. Utter noted that there is another strip of land in Kleberg County that will be added and Mr. Garcia said smaller annexations can be accomplished at any time --they do not have to wait until the end of the calendar year. Mayor Neal said the proposed ordinance states that the City Council "may authorize recognition of beach parking permits issued by the City of Port Aransas or Nueces or Kleberg County..." He asked if it is possible to develop just one permit. Mr. Utter said Kleberg County does not currently issue beach permits but they have the authority to do so. Mr. Garcia said staff supports the idea of one permit, which would be one of the advantages of annexing the county sites. He said city staff met with representatives of the General Land Office last week and one of the issues they discussed was multiple beach permits. City Secretary Chapa polled the Council for their votes: 13.a. FIRST READING ORDINANCE Ordinance amending Ordinance No. 022164, which adopted the City of Corpus Christi, Texas Dune Protection and Beach Access Regulations, by revising Appendix VII, Designated Beach Fee Areas; providing for an effective date; and providing for penalties. The foregoing ordinance passed on first reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 13.b. FIRST READING ORDINANCE Ordinance amending Article VIII, Fees, of Chapter 10, Beachfront Management and Construction of the Code of Ordinances, City of Corpus Christi; providing for an effective date; and providing for penalties. The foregoing ordinance passed on first reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Minutes - Regular Council Meeting December 18, 2001 Page 7 Mayor Neal opened discussion on Item 14, Central Power & Light (CPL) franchise extension. Mr. J.E. O'Brien, 4130 Pompano, questioned why the 1998 kilowatt hour price was being used in the compensation provision. He also asked whether the Mayor should vote on this item because at one time (albeit several years ago) he served on the CPL board of directors. City Manager Garcia replied that as indicated in the agenda memorandum, the kilowatt hour calculation with the 1998 basis is required by state law [Texas Utilities Code, Section 33.008(b)]. City Attorney Bray added that there is no problem with the Mayor voting on this item. City Secretary Chapa polled the Council for their votes as follows: 14.a. M2001-480 Motion to amend prior to second reading the ordinance granting a one-year franchise extension to Central Power and Light Company to clarify the compensation provision. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 14.b. ORDINANCE NO. 024711 Ordinance granting a one-year franchise extension to Central Power and Light Company for provision of light, heat, and power. The foregoing ordinance passed on second reading, as amended, by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal referred to the presentations on the day's agenda. The first presentation (Item 19) was regarding the South Texas (Electric) Aggregation Project (STAP). Mr. Mark McDaniel, Director of Management and Budget, introduced Mr. Geoffrey Gay, STAP Legal Counsel. He explained that the STAP currently consists of 36 cities with the greatest electric load in the South Texas area. The City of Corpus Christi is the largest entity in the STAP with three-eighths of the total load (400 million kilowatts per hour). He said the STAP and the Cities Aggregation Power Project (CAPP) in North Texas are the largest city aggregation projects in the state. Mr. Gay said STAP received an excellent commodity price (better than initial indicative bids) from First Choice, the retail electric provider which will be supplying the power. He said First Choice is the new affiliated competitive name of the former Texas -New Mexico Power Project. He noted that STAP went out of its way to ensure there was communication to every known registered provider of power in the state --not just the retail electric providers but also generators which may want to pair with the retailers to submit a bid. Minutes - Regular Council Meeting December 18, 2001 Page 8 In addition to the excellent price, said Mr. Gay, other benefits of this proposal are favorable terms and conditions; simplicity and accountability; rate-by-rate/account-by-account analysis and ability to focus on problem areas where solutions could increase savings; and unity (100 cities from STAP and CAP signed the agreement). Mr. Gay said he thought the contract proposal from First Choice is the best in Texas, including better than those with any other aggregation unit or political entity. In response to Council Member Chesney, Mr. Gay reviewed historical and procedural aspects of deregulation. Mayor Neal pointed out that First Choice's proposal pertains to municipal electric usage only and not to business, industry or residential electric usage. Mr. Gay said that as a result of the First Choice agreement, working through STAP, Corpus Christi will have an estimated savings of $1.2 million compared to the price -to -beat, when including savings passed on by the Lavaca-Navidad River Authority. He said he believes that is a conservative projection --the savings will likely be higher under Central Power & Light's standard offer contract. In addition, he said avoidance of penalties could save $100,000. He said the total savings, including the price -to -beat and the STAP contract, are estimated to be $2.8 million. Responding to Council Member Kinnison, Mr. McDaniel said that much of the savings should occur in the utilities. He said staff will provide additional information to the Council. Council Member Colmenero asked about other funds, and Mr. McDaniel said all the operating funds which have any electrical power budgeted in them will benefit in some way from the savings. Council Member Noyola asked about a possible impact on the utility rates next year. Mr. McDaniel said the results of the STAP agreement will be taken into consideration during the next budget process. Mayor Neal recessed the Council meeting to swear in the new members to the city's boards. * * * * * * * * * * * * * Upon reconvening, the second presentation (Item 20) was an update on the base realignment and closure (BRAC) process. Mr. Gary Bushell, a consultant to the South Texas Military Facilities Task Force (STMFTF) and the Corpus Christi Chamber of Commerce, said the BRAC legislation was passed by both houses of Congress on December 13th and it is anticipated that President Bush will sign it shortly. He noted that the STMFTF grew out of a Chamber of Commerce committee that for many years was chaired by Mayor Neal. Mr. Bushell thanked him for his service. Mr. Bushell then described the BRAC process. He said that February 2004 is the deadline for a detailed force structure plan and infrastructure inventory to support future military needs. The Defense Secretary must certify that base closures are justified and will result in annual net savings for each of the services by 2011. The President will then appoint a BRAC Commission in 2005. In May of that year, the Department of Defense will submit a list of bases to be closed. In September, the commission will submit their closure and realignment recommendations to the President, which he can then accept or reject. Once submitted, Congress will have 45 days to approve or reject the entire list. Mr. Bushell also discussed changes in the BRAC process, including the significance of "military value." Minutes - Regular Council Meeting December 18, 2001 Page 9 Mr. Bushell said the local military facilities benefit from the fact that this area has the best airspace for Navy training as well as uncongested shipping lanes for training of mine warfare vessels. He also commented on the unique capacities of Naval Station Ingleside and Naval Air Station - Corpus Christi, particularly with regard to homeland defense operations, and the presence of the Corpus Christi Army Depot, U.S. Coast Guard and Customs on NAS -CC. He said BRAC will also consider the infrastructure of potential receiving communities, such as the city's airport. Mayor Neal said Mr. Bushell's report reemphasizes the necessity for the area to continue its lobbying presence in Washington, D.C., over the next two years. Responding to Council Member Colmenero, Mr. Bushell said that any community that is on the closure/realignment list will get a field hearing, as will any area added to the list by the BRAC Commission. Mr. Bushell said the city has begun the process by funding the task force and lending the services of city staff. He also commented on the possible role of private sector companies at the military facilities. Responding to Council Member Garrett, Mr. Bushell said that a map of the commercial airline hub system traffic flows is one of the most effective means of demonstrating the airspace advantage of the area's military facilities. Council Member Scott asked when the trip to Washington, D.C.--that was postponed following the events of September 11th --will be rescheduled. Mr. Bushell said they are working with Congressman Solomon Ortiz to reset that meeting. Mr. Scott suggested that Mr. Bushell coordinate his efforts with the Coastal Bend Council of Governments' Homeland Defense Task Force. * * * * * * * * * * * * * Mayor Neal deviated from the agenda and opened discussion on Item 28, agreement with the Corpus Christi Regional Economic Development Corporation (EDC). City Secretary Chapa said Council Member Noyola had filed an abstention affidavit for Item 28. Mr. Utter said staff was distributing proposed amendments for minor changes to Items 28.c. and 28.d. (28.b. is exactly the same as 28.c. exact for the term) to reflect minor changes in the wording. He explained that Item 28.a. is a resolution establishing an economic development program under Chapter 380 of the Texas Local Government Code. He said Items 28.b. and 28.c. are the one- year and long-term ground leases and Item 28.d. is the resolution approving the economic development grant agreement between the city and the EDC. He said the city, the Port and Nueces County are each taking one-third of the liability of this proposal, which he described. He said there is a shortage of the type of hangar space that will be developed by VT Technologies at the airport. Responding to Council Member Kinnison, Mr. Utter said the maximum exposure for each of the entities (including the city) is $6,060,000. He said that assumes that VT Technologies has left and no one else is willing to lease the facility. Mr. Utter said the projected number of jobs for the first two hangars is 450. Mr. Ron Kitchens, President and CEO of the EDC, said those jobs average $35,000 to $65,000 per year. He said side benefits include increased traffic at the airport, hotel/motel occupancy tax revenues, increased Federal Express air service, and various on-site support services. 1 Minutes - Regular Council Meeting December 18, 2001 Page 10 Mr. Kitchens added that the job training monies are based on creating the jobs; i.e., if VT Technologies does not provide the employment, they do not receive the $1 million from the state and federal government. He added that the Economic Development Administration grant and the enterprise zone regulations have job creation components in them; however, there is nothing that directly ties the ground lease to job creation. He added that as soon as the facility is paid off, it will become a city building. In reply to Council Member Scott, Mr. Kitchens said the estimate of the personal property in the facility is about $5 million per hangar. He said assuming the ground breaking is held in March or April 2002, it will take about one year to construct the facility, with plans to be in operation by spring 2003. He said this will be the largest aviation project in the United States this year. Council Member Chesney said the Council recognizes the importance of finding good jobs for this community, which this proposal does while acknowledging there is risk involved. Responding to Council Member Colmenero, Mr. Utter said aeronautical facilities such as this are tax exempt. Mr. Abel Alonzo thanked the city, county and port for working together on this proposal. However, he said he is disappointed because he and the other members of the Airport Board had no knowledge of it. Mayor Neal thanked Congressman Ortiz for his efforts. Mr. Colmenero made a motion to amend Items 28.b. -28.d. to substitute the leases and agreement with the ones provided by staff. The motion was seconded by Mr. Chesney and passed (Noyola abstaining). Mr. Chapa polled the Council for their votes as follows: 28.a. RESOLUTION NO. 024716 Resolution establishing a program to promote local economic development and to stimulate business and commercial activity with respect to the development of the Corpus Christi International Airport; and authorizing a grant to Corpus Christi Regional Economic Development Corporation. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, and Scott voting "Aye"; Noyola abstaining. 28.b. ORDINANCE NO. 024717 Ordinance approving a one-year ground lease at Corpus Christi International Airport between the City of Corpus Christi and the Corpus Christi Regional Economic Development Corporation. An emergency was declared and the foregoing ordinance passed, as amended, by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, and Scott voting "Aye"; Noyola abstaining. Minutes - Regular Council Meeting December 18, 2001 Page 11 28.c. FIRST READING ORDINANCE Ordinance approving a long-term ground lease at Corpus Christi International Airport between the City of Corpus Christi and the Corpus Christi Regional Economic Development Corporation. The foregoing ordinance passed on first reading, as amended, by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, and Scott voting "Aye"; Noyola abstaining. 28.d. RESOLUTION NO. 024718 Resolution approving an economic development grant agreement between the City of Corpus Christi and the Corpus Christi Regional Economic Development Corporation. The foregoing resolution passed, as amended, by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, and Scott voting "Aye"; Noyola abstaining. * * * * * * * * * * * * * The third presentation (Item 21) was the initial preview of the capital budget and capital improvement plan (CIP). Mr. McDaniel introduced Mr. Mario Tapia, Assistant Director for Capital Budget. Mr. McDaniel said staff was presenting the proposed capital budget to the Council at this meeting. He added that the Planning Commission public hearing will be held on December 19th and the City Council public hearing and first reading will be held on January 8, 2002. The adoption on second reading is scheduled for January 15, 2002. Mr. McDaniel said the format enhancements of the capital budget include short-range and long-range CIP components. The short-range CIP has been adjusted to three years and is fully funded. As a result, the short-range CIP more reasonably and accurately matches available resources with programmed multi-year capital and operating expenditures; improves project scheduling; and corresponds with the bond election cycle. He said the long-range CIP allows for planning beyond the traditional five-year period. Mr. McDaniel then described the CIP planning process. The Budget Director said that most Bond Issue 2000 general obligation projects, the seawall project, and major airport renovations are reflected in the "Prior FY Budget" category of the short- range CIP. He said that funding has already been appropriated and obligated and project updates are provided via quarterly presentations to the Council. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 26, arena management services. Council Member Kelly said he would be abstaining from discussing or voting on this item. i Minutes - Regular Council Meeting December 18, 2001 Page 12 Deputy City Manager Noe introduced Mr. Steven Jacobs, a member of the law firm representing the city in its dealings with SMG. Mr. Noe reviewed the actions regarding the arena up to this point, noting that it was decided early on that the arena should be privately managed and subsequently SMG was selected as the management team. He said this proposed agreement calls for two kinds of services--technical/pre-opening services and management of the facility. Mr. Noe said pre -opening services will include such issues as facility space and design issues; budget and procurement of furniture, fixtures and equipment; parking plans; and a marketing plan. In addition, SMG will be required to prepare an operating budget; develop a staffing plan, financial and accounting systems, and operating policies and procedures; coordinate a booking policy and rental rates; negotiate agreements with major users; and develop a comprehensive food services plan. He said the city will pay SMG based on an hourly rate for the various staff positions working on the project plus reimbursing their expenses. Also, the pre -opening budget will be agreed upon and adopted and is included in the overall project budget. Mr. Noe said that SMG's facility management responsibilities will include managing and operating the facility in all respects, including hiring staff; negotiating contracts with users and vendors in accordance with policies approved by the city; marketing the sale of luxury boxes, suites, advertising, and licensing; and recommending a budget and administering it once it is adopted by the city. The terms of the agreement are that the city will provide a working capital fund and will be responsible for expenses and receive all revenues. He said SMG will receive a management fee beginning at $125,000 annually, which will grow to $150,000 by the end of the contract. In addition, SMG's successful operation of the arena (positive financial and customer performance) will earn the company an incentive fee of 25% of the base fee. The city will retain budget approval and SMG will provide insurance as a reimbursed cost. He said the five-year management agreement, which begins with the opening date, also includes non -solicitation provisions and a non -compete clause. Council Member Longoria asked if Memorial Coliseum will be viewed as a competing entity. Mr. Noe said staff intends to discuss that issue with SMG, as well as the issue of SMG possibly operating the convention center. Other elements of the contract are that naming rights is an optional service; the bonds on the arena can be issued as tax-exempt bonds; termination can occur after the third year at will and for cause at any time; and the city may be a party to negotiations with major users or concessionaires. Mr. Noe said that private management is key to the successful operation of the arena and SMG is the largest and most experienced operator in the country. He said the agreement is in the city's best interests and staff recommends approval. Responding to Mayor Neal, Mr. Jacobs said that from a legal standpoint, he is pleased with the form of the contract. In reply to Council Member Scott, Mr. Noe said the agreement states that SMG may provide other services, such as for the convention center. Council Member Colmenero asked about concession contracts and Mr. Noe said the agreement states that SMG is expected to acquire those services. He said the city has the choice of participating in the negotiations with the concessionaires. He added that SMG is required to solicit multiple vendors and follow a similar process of selection Minutes - Regular Council Meeting December 18, 2001 Page 13 as the city's selection process. Mayor Neal called for public comment and there was none. Council Member Kinnison made a motion to amend Item 26 to include the two exhibits distributed to the Council by staff. The motion was seconded by Mr. Colmenero and passed (Kelly abstaining). City Secretary Chapa polled the Council for their votes as follows: 26. M2001-483 Motion authorizing the City Manager or his designee to execute an agreement with SMG to perform pre -opening services and management services for the multi-purpose arena. The foregoing motion passed, as amended, by the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Kelly abstaining. ********** * ** Mayor Neal opened discussion on Item 25, water well leasing program. City Manager Garcia explained that currently the city's ordinance requires it to maintain a certain number of water wells as part of its water supply. He said following the consultant's study, staff is recommending changes to the ordinance based on a number of criteria. Mr. Max Castaneda, Water Resources Management Advisor, said that according to the Code of Ordinances, Sec. 55-151(b), Water Conservation and Drought Contingency Plan, the City Manager "shall pursue a water well leasing program to obtain and maintain sufficient leased acreage to produce at least 60 million gallons per day of groundwater to supplement surface supplies, as needed." Mr. Castaneda said that requirement was established in 1987 when the only sources of water were Lake Corpus Christi and the Choke Canyon Reservoir (which was newly constructed and still empty), and some wells near Campbellton and Lake Corpus Christi. Mr. Castafieda said last week staff provided the Council with the final report of a study conducted by HDR Engineering on the city's existing standby groundwater supply system. Mr. Kelly Payne, of HDR Engineering, said the system consists of four wells at Campbellton with a maximum supply of 11.8 million gallons per day (MGD), or 13,200 acre-feet per year, and 12 wells at Lake Corpus Christi, with a maximum supply of 14.2 MGD, or 15,900 acre-feet per year. Mr. Payne described the following issues related to the Campbellton wells: need to overhaul the pump facilities at each well; potential long-term aquifer draw -down impacts; additional "excise fees" to use the water outside the boundaries of the Evergreen Underground Water Conservation District; the well water must be cooled before discharge into the river; large losses in delivery to Calallen Dam; and water must be provided to local users in the Campbellton area. City Manager Garcia said the EUWCD was not in effect when the Campbellton wells were purchased in the 1950s. In order to use the well water outside the district, the city would have to purchase thousands of acres to comply with the district's regulations. Mr. Payne said the annual cost to use these wells would be $424 per acre-foot per year, compared to $259 per acre-foot for the Garwood pipeline. V Minutes - Regular Council Meeting December 18, 2001 Page 14 Responding to Council Member Kelly, Mr. Payne said if the city utilized all the water from the Campbellton wells that is allowed, the draw -down level of the aquifer would be reached in 10 to 15 years. He added that the city has the right to 35,000 acre-feet of water per year from the Colorado River via Garwood, which is of a better quality than the Campbellton well water. Mr. Payne said the pump facilities at the Lake Corpus Christi (LCC) wells would need to be overhauled; in addition, the poor quality of the groundwater will negatively impact the surface water system of the Nueces River. He also described the water quality of the lower Nueces River basin, including total dissolved solids and chloride and bromide concentrations. Mr. Castaneda said staff is recommending that the ordinance be amended to give the City Manager the flexibility to pursue supplemental groundwater supplies that are not limited to type or amount. Responding to Council Member Chesney, Mr. Ron Massey, Assistant City Manager for Public Works and Utilities, said that by not using the well water from Campbellton and LCC, the city would be avoiding a $20 million project cost plus $55,000 in annual land lease costs. In comparison, the city already signed a contract with the Lavaca-Navidad River Authority for 4,500 acre-feet of interruptible water for about $170,000; also, the city is working to obtain another 7,500 acre-feet from LNRA. In reply to Mr. Kelly, Mr. Payne said the $191 per acre-foot per year cost for the LCC well water includes increased treatment costs if the water can be delivered to the treatment plant. He said that cost estimate assumes that the Texas Natural Resource Conservation Commission will allow the city to discharge the water into the Nueces River and deliver it via the river's bed and banks. He noted that the total dissolved solids amount is not within the river segment standards. Mr. Massey pointed out that the 4,500 acre-feet of interruptible water the city is receiving from Lake Texana costs about $40 per acre-foot, while the firm yield water costs about $80 per acre-foot. Mr. Kelly asked what the value of the Campbellton well water might be to another entity, such as the City of San Antonio. Mr. Massey said that since the city owns those wells, it can dispose of them if that determination is made. He said if the Council approves the proposed amendment to the ordinance, it will give the City Manager the flexibility to take such action. Mr. Colmenero asked when the leases expire, and Mr. Massey said they are expiring now, which is why staff is making these recommendations to the Council. Mr. Garcia explained that this is a proposal to delete paragraph (b) from Section 55-151 of the Code of Ordinances (as quoted on page 13 of the minutes). He said the existing ordinance states that the City Manager "shall" use the water wells; however, since the city's water situation has changed, this amendment allows staff the flexibility to better manage the city's water resources. There were no comments from the audience. City Secretary Chapa polled the Council for their votes: 25. FIRST READING ORDINANCE Ordinance revising Section 55-151(b) of the Code of Ordinances, City of Corpus Christi, relating to the City's water well leasing program. i 1f Minutes - Regular Council Meeting December 18, 2001 Page 15 The foregoing ordinance passed on first reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, and Noyola voting "Aye"; Kinnison, Longoria, and Scott absent. * * * * * * * * * * * * * The fourth presentation (Item 23) was the quarterly update on the airport terminal reconstruction project. Mr. Dave Hamrick, Aviation Director, said the construction is proceeding on budget and on schedule and he showed photographs to illustrate the progress. He said the Council asked staff to reconsider the original concept of locating all the concessionaires beyond the security check -point. He noted that a large portion of airport customers are not the travelers themselves but those who are meeting them. Consequently, staff developed a compromise to accommodate the Council's wishes with that of the restaurant owner. Mr. Hamrick said the Airport Board unanimously agreed to recommend to the Council the proposed roadway/parking lot design. He noted that the project was originally designed to be bid and completed as one project. However, due to decreased revenues and increased expenditures following the September 1 lth terrorist attacks, staff felt it would be more prudent to break the project into two phases. In addition, there will be two additive alternates to help the traveling public during inclement weather, which he described. Responding to Council Member Garrett, Mr. Hamrick said eventually the airport's short-term parking lot will be reopened once additional security measures are implemented. Mr. Hamrick also discussed the proposed location of the rental car lot near the terminal and landscaping improvements. Responding to Mayor Neal, Mr. Hamrick discussed the updated financial information, noting that the airport should have a balanced budget despite the September 1 lth attacks due to federal monies for security measures. Council Member Scott asked about the two phases of the roadway design, which Mr. Hamrick explained. Council Member Chesney asked about Delta Airlines' expanded service. Mr. Hamrick said there are probably multiple reasons why Delta made that decision, including the success of the direct ASA Delta service to Atlanta. Mayor Neal referred to Item 24, the action item associated with this presentation. There were no comments from the audience. City Secretary Chapa polled the Council for their votes: 24. M2001-482 Motion authorizing the City Manager or his designee to approve the roadway/parking lot design for the Corpus Christi International Airport. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, and Scott voting "Aye"; Noyola abstaining. * * * * * * * * * * * * * The fifth presentation (Item 22) was the quarterly update on the reengineering efforts. Mr. Minutes - Regular Council Meeting December 18, 2001 Page 16 Massey said staff now has the master plan for implementing a computerized maintenance management system (CMMS) and the Council approved the first phase of the contract with EMA Services Inc. He said the first training session was held in November with 80 employees from 23 city departments who will benefit from CMMS. In addition, staff is in the process of loading software and implementing the program in the first business unit. Mr. Massey said the first four divisions to incorporate CMMS are the O.N. Stevens Water Treatment Plant, the city's six wastewater treatment plants, water distribution systems (and GIS interface), and the wastewater collection system (and GIS interface). After implementation of the Last division in the fall of 2002, staff will assess the results and make recommendations about other activities in the pilot program and interfaces with the PeopleSoft and HTE software programs. Mr. Massey said that in each business unit there is more focus on improving business practices than on computer technology. He said that is accomplished by analyzing current business practices; modeling best management practices and identifying opportunities; gathering asset data and loading it into CMMS; developing job plans and a Manual of Practices; and training users in the system. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 27, golf course irrigation. City Manager Garcia explained that Mr. Noe, Mr. Massey and Mr. Foster Crowell, Wastewater Superintendent, have been instrumental in negotiating the proposed agreement. He said one of the largest costs in operating a golf course is irrigation and an underutilized asset the city has is its treated effluent. Mr. Noe said the key terms of the agreement are as follows: the golf clubs involved will finance and build a line to the Oso Wastewater Treatment Plant; after completion of the project, the clubs will transfer ownership of the line to the city; the city will provide effluent within certain limits and any additional amounts will be paid for at the lowest effluent rate; the clubs will have to use the effluent in accordance with TNRCC rules; and at the end of the 20 -year term, all the effluent will be paid for by the clubs. In addition, the clubs are not allowed to resell the effluent and it may only be used for existing properties owned by the clubs. The city may oversize the line for other users at its cost. He said staff will establish a rate next year for all private users. Mr. Noe said this represents an opportunity to establish a utility for treated effluent, which benefits both the water and wastewater systems. Mayor Neal called for public comment. Mr. Larry Urban spoke in favor of the proposed agreement. City Secretary Chapa said Mayor Neal and Council Members Garrett and Scott would be abstaining from voting on this item. Council Member Kelly asked about other potential customers for the effluent use. Mr. Noe said there are a limited number of customers because of the strict regulations, but the university is a potential customer. Mr. Garcia said once the city prices the effluent, there may be other customers. Mr. Noe said for large users, this is basically an uninterruptible irrigation source. Mr. Chapa polled the Council for their votes as follows: 1 T 7 Minutes - Regular Council Meeting December 18, 2001 Page 17 27. M2001-484 Motion authorizing the City Manager or his designee to execute an agreement with Golf Course Effluent Distribution System, L. L.C., Corpus Christi Country Club (CCCC), and Kings Crossing Country Club (KCCC) to provide for the transportation and use of treated effluent at those golf course facilities. The foregoing motion passed by the following vote: Chesney, Colmenero, Kelly, Kinn son, Longoria, and Noyola voting "Aye"; Neal, Garrett, and Scott abstaining. * * * * * * * * * * * * * Mayor Neal announced the executive sessions, pursuant to Texas Govemment Code Section 551.071 regarding the following: 29. Jon Harwood et al v. City of Corpus Christi, No. 00-4149-G, 319th District Court, Nueces County, Texas, with possible discussion and action related thereto in open session; 30. City of Corpus Christi Project #3219, Nourishment of Corpus Christi Beach - 2001, with possible discussion and action related thereto in open session. (Note: Item 31, legal advice regarding Priscilla G. Leal v. the City of Corpus Christi et al, No. 01-0253-E, 148th District Court, Nueces County, Texas, was withdrawn.) The Council went into executive session. The Council returned from executive session. * * * * * * * * * * * ** Mayor Neal called for petitions from the audience. Ms. Yalee Shih, Vice -President of the Asian Cultures Museum and a member of the Sister City Committee, discussed a proposed performance by the Chinese Folksports National Champions. She said their original United States tour was cancelled after the September 1 lth attacks, but since they had visited Corpus Christi three years ago, they would like to return here for their only U.S. performance on January 26, 2002. She said the group is working very hard to raise funds and she is asking for public and private assistance. Council Member Longoria said he thought the Council would concur if staff recommended waiving the fee for the group's use of the Selena Auditorium. Council Member Colmenero said their previous performance was exceptional. ************* Mayor Neal called for the City Manager's report. Mr. Garcia said the next Council meeting will be held on January 8, 2002. The Feast of Sharing dinner will be held on December 24th from 11 a.m. to 3 p.m. He said items scheduled for January include the capital budget, a joint meeting with the Convention and Visitors Bureau on January 15th, and union dues discussion on January 22nd. Mayor Neal complimented Mr. Garcia and city staff for the quantity and quality of their Minutes - Regular Council Meeting December 18, 2001 Page 18 presentations. He then called for Council concerns and reports. Mr. Chesney echoed the Mayor's comments on the staff's presentations. He also announced a coat drive for students at Evans Elementary and he congratulated Mr. Jorge Cruz-Aedo, who was named Assistant City Manager from his previous position as Director of Financial Services. Mr. Garcia said there will be some reassignments of city departments and Mr. Cruz-Aedo will continue directing Financial Services until a successor can be named. Mr. Cruz-Aedo said his appointment is a great honor and he looks forward to continuing to serve the city. Mr. Chesney commented on the importance of continuing to improve the health insurance program. Mr. Scott asked about the DWI "blue light" grant. He said a newspaper article implied that the city was not awarded the grant due to an inferior application. Mr. Garcia said staff will provide additional information, but his understanding is that other communities have been more aggressive in their estimates of the number of DWI arrests they feel they can make with the grant monies. Mr. Scott also said he feels it is important that the Council discuss and set their goals in January. Mayor Neal said the Council will do so in the first quarter of 2002. Mr. Scott spoke positively about Corpus Christi's future. Mr. Noyola and other Council members wished the citizens happy holidays. Mr. Colmenero commented on a letter regarding car vandalism at the Best Western Marina Grand Hotel. There being no further business to come before the Council, Mayor Neal adjourned the Council meeting at 5:35 p.m. on December 18, 2001. * * * * * * * * * * * * * r . �