HomeMy WebLinkAboutMinutes City Council - 11/26/2002 - SpecialI HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the
Special Council Meeting of the City of Corpus Christi of November 26, 2002, which were approved
by the City Council on December 10, 2002.
WITNESSETH MY HAND AND SEAL, this 10th day of December 2002.
Armando Chapa
City Secretary
SEAL
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Special Council Meeting
November 26, 2002 - 11:32 a.m.
PRESENT
Mayor Samuel L. Neal Jr.
Mayor Pro Tem Javier D. Colmenero
Council Members:
Brent Chesney
Henry Garrett
Bill Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
ABSENT
John Longoria
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 Parry
Mayor Neal called the meeting to order in the Council Chambers of City Hall. City Secretary
Chapa checked the roll and declared that there was a quorum of the Council and the necessary
charter officers were present to conduct the meeting.
City Manager Garcia explained that the four-part item on the day's agenda essentially deals
with the financing and bond sales related to the convention center/arena project. He said it also
designates the guaranteed maximum price on the expansion of the convention center.
Deputy City Manager Noe said that Item 1.a. is identical to a resolution the Council adopted
on October 8, 2002, and this action reiterates it. He said that Item 1.b. is the authorization of the
issuance of the debt for the convention center project, which is funded from the proceeds from the
2% increase in the hotel/motel occupancy tax with an underlying pledge of property taxes. He said
there is a need for one amendment to this item to reflect the additional $5,000 on the par amount.
Mr. Noe referred to page 50 in the agenda material which lists the way in which the monies
will be used, which ties in with Item 1.d. He said that M.E. Allison, the financial advisor on this
project, and A.G. Edwards, the senior underwriter, did an excellent job of pricing the bonds, which
have an interest rate of 4.748%. Mr. Noe said that Item 1.c. appropriates the bond proceeds as well
as the revenues received from the hotel tax, and Item 1.d. sets the guaranteed maximum price with
Moorhouse-Beecroft. He said if the project is less than $25 million, the city will pay the lower
amount. Mayor Neal called for public comment on Item 1.
Mr. J.E. O'Brien, 4130 Pompano, asked if there is an amount on the bonds under Item 1.a.
of which the Council is approving the issuance. He also asked for a reconciliation of the difference
between the appropriation of $34 million and the construction cost of $25 million.
Mr. Noe said that with regard to Item 1.a., the resolution stipulates that the bonds for the
arena will not exceed $50 million and they will be sized based on the price of the project. He said
that as shown on page 50, the reconciliation of how the funds will be used include $25 million for
Minutes - Special Council Meeting
November 26, 2002 - Page 2
construction; the project's share of street work in front of the building (a separate contract) of
$400,000; a contingency of $2,287,000; architectural/engineering fees of $2,044,066; furniture,
fixtures and equipment costs of $500,000; project management fees of about $2 million; the 1.25%
allocation for art of $100,000; as well as other expenses for a total of $34,185,505. He said he can
provide Mr. O'Brien with a copy of that information.
Council Member Kinnison said that while the Council is authorizing to issue up to $50
million of bonds for the arena, the projected hard construction cost for the arena still remains
approximately $35 million. Mr. Noe said that was correct. Mr. Kinnison said that any and all uses
of that money have to be specifically for the arena project.
Mr. Kinnison also asked about the guaranteed maximum price agreement. Mr. Noe said that
once the price is set, the contractor and the city will jointly bid all the subcontracts and trades. At the
end of that process, if the construction cost is less than $25 million, that is what the city's cost will
be; however, if it is more than $25 million, the difference will be the contractor's responsibility.
Responding to Council Member Noyola, Mr. Noe said all of the funding for the convention
center expansion comes from the hotel/motel occupancy tax. He said the arts ordinance requires that
the city set aside 1.25% of new construction for arts. He said since the convention center project is
a combination of remodeling and new construction, the Council committed to the Arts and Cultural
Commission to set aside a certain amount ($100,000) in this budget to reach the $500,000 for both
the arena and convention center projects.
Council Member Colmenero made a motion to amend Item 1.b. to change the amount from
$31,540,000 to $31,545,000, seconded by Council Member Garrett. The motion to amend passed
on a voice vote as follows: Neal, Chesney, Colmenero, Garrett, Kinnison, Noyola, and Scott voting
"Aye"; Kelly abstaining; Longoria absent. City Secretary Chapa polled the Council for their votes:
1.a. RESOLUTION NO. 025120
Resolution approving the resolution authorizing the issuance of bonds by the Corpus Christi
Business and Job Development Corporation and the execution of a project agreement and
a bond purchase agreement with respect to the arena project.
The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett,
Kinnison, Noyola, and Scott voting "Aye"; Kelly abstaining; Longoria absent.
1.b. ORDINANCE NO. 025121
Ordinance by the City Council of the City of Corpus Christi, Texas, providing for the
issuance of City of Corpus Christi, Texas, Combination Tax and Municipal Hotel Occupancy
Tax Revenue Certificates of Obligation, Series 2002, in an aggregate principal amount of
$31,545,000 and ordaining other matters relating to the subject.
An emergency was declared and ordinance passed as amended: Neal, Chesney, Colmenero,
Garrett, Kinnison, Noyola, and Scott voting "Aye"; Kelly abstaining; Longoria absent.
Minutes - Special Council Meeting
November 26, 2002 - Page 3
1.c. ORDINANCE NO. 025122
Ordinance appropriating $1,626,418 from Reserve for Convention Center Expansion in the
Hotel Occupancy Tax Fund 1030, authorizing the transfer of $1,626,418 to the Convention
Center 2002 CIP Fund; appropriating $34,185,505 in the Convention Center 2002 CIP Fund;
$32,131,337 from the Combination Tax and Municipal Hotel Occupancy Tax Revenue
Certificates of Obligation, Series 2002; $1,626,418 from the Hotel Occupancy Tax Fund
1030; and $427,750 from anticipated interest earnings in the Convention Center 2002 CIP
Fund to fund the construction and expansion of the convention center.
An emergency was declared and the foregoing ordinance passed: Neal, Chesney, Colmenero,
Garrett, Kinnison, Noyola, and Scott voting "Aye"; Kelly abstaining; Longoria absent.
1.d. M2002-399
Motion authorizing the City Manager or his designee to execute Amendment No. 1 to the
construction manager at risk contract with Moorhouse-Beecroft, Joint Venture, LLC,
establishing a guaranteed maximum price of $25,000,000 for construction of the Bayfront
Convention Center expansion/rehabilitation project.
The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett,
Kinnison, Noyola, and Scott voting "Aye"; Kelly abstaining; Longoria absent.
There being no further business to come before the Council, Mayor Neal adjourned the
Council meeting at 11:42 a.m. on November 26, 2002.
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