HomeMy WebLinkAboutMinutes City Council - 08/26/2003I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the
Regular Meeting of the Corpus Christi City Council of August 26, 2003, which were approved by
the City Council on September 9, 2003.
WITNESSETH MY HAND AND SEAL, this 9th day of September 2003.
Armando Chapa
City Secretary
SEAL
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Council Meeting
August 26, 2003 - 12:05 p.m.
PRESENT
Mayor Samuel L. Neal Jr.
Mayor Pro Tem Melody Cooper
Council Members:
Brent Chesney
Javier D. Colmenero
Henry Garrett
Bill Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
Mayor Neal called the m
invocation was delivered by Fath
Pledge of Allegiance to the Unite
Chapa called the roll and verified t
officers were present to conduct t
Mayor Neal announced the
2. Executive session under T
regarding the acquisition a
possible discussion and rel
City Staff:
City Manager George K. Noe
Acting City Attorney R. Jay Reining
City Secretary Armando Chapa
Recording Secretary Rebecca Huerta
eting to order in the Council Chambers of City Hall. The
r Ken Parks with St. Bartholomew's Baptist Church and the
States flag was led by Council Member Kelly. City Secretary
at the necessary quorum of the Council and the required charter
e meeting.
executive sessions, which were listed on the agenda as follows:
xas Government Code Sections 551.071, 551.072 and 551.087
7d development of site for minor league baseball stadium, with
ated action in open session.
3. Executive session under Texas Govemment Code Section 551.071 regarding CCMCA, Inc.,
a Texas Corporation vs. City of Corpus Christi, Case No. C-03-170, in the United States
District Court for the Southern District of Texas, Corpus Christi Division, with possible
discussion and action in open session.
4. Executive session under T4xas Government Code Section 551.071 regarding AVE, Inc. Vs.
City of Corpus Christi andl Peter Alvarez, in his official capacity as Chief of the Corpus
Christi Police Department Case No. C-03-216, in the United States District Court for the
Southern District of Texas Corpus Christi Division, with possible discussion and action in
open session.
5. Executive session under Texas Government Code Section 551.071 regarding a claim from
Garver Construction, Ltd. relating to the Up River Road 24" Water Line Improvements
Project, Lantana Road to I14-37, Phase IV, with possible discussion and related action in
open session.
Minutes - Regular Council Meeting
August 26, 2003 - Page 2
The Council went into executive session. The Council returned from executive session.
Mayor Neal called for approval of the minutes of the regular Council meeting of August 19, 2003.
A motion was made and passed to approve the minutes as presented.
Mayor Neal called for con ideration of the consent agenda (Items 6-27). City Secretary
Chapa announced that Item 9 had en withdrawn by staff and that Item 14 needed to be amended.
Council members requested that It ms 11 and 27 be discussed. There were no comments from the
audience. A motion was made and passed to approve Items 6 through 27, constituting the consent
agenda, except for Items 11, 14 nd 27 which were pulled for individual consideration. City
Secretary Chapa polled the Counc'1 for their votes as follows:
6. MOTION NO. 2003-284
Motion approving the lease urchase of 140 golf carts for Oso and Gabe Lozano golf courses
in accordance with Bid In itation No. BI -0138-03 from E -Z -GO Textron Gulf Coast of
Humble, Texas for the tota amount of $290,240 based on low bid meeting specifications.
Financing has been budget d by the Park and Recreation Department in FY 2003-2004.
The foregoing motion passed with the following vote: Neal, Chesney, Colmenero, Cooper,
Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
7.a. ORDINANCE NO. 02543$
Ordinance appropriating $109,000 in unappropriated interest earnings from Water Capital
Improvement Program Ftnd No. 4084 for electronic handheld meter reading system;
amending FY 2002-2003 Capital Budget adopted by Ordinance No. 025144 to increase
appropriations by $109,000.
The foregoing ordinance passed with the following vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Kiznison, Noyola and Scott, voting "Aye".
7.b. MOTION NO. 2003-285
Motion approving a supply agreement with Itron, Inc. of Spokane, Washington in
accordance with Request 'or Proposal No. BI -0137-03 for a handheld electronic meter
reading system based on best value for a fixed three year expenditure of $109,000. The term
of the supply agreement shall be for three years with an option to extend the contract for up
to three additional years, subject to the approval of the supplier and the City Manager or his
designee.
The foregoing motion passed with the following vote: Neal, Chesney, Colmenero, Cooper,
Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
Minutes - Regular Council Meeting
August 26, 2003 - Page 3
8. MOTION NO. 2003-286
Motion authorizing the City Manager or his designee to execute a twelve-month hardware
maintenance agreement with the Texas Department of Information Resources of Austin,
Texas based upon the S te's cooperative purchasing agreement in the amount of
$90,485.28. Included in t agreement is maintenance and replacement support for the
Police Department's server and Compaq laptops.
The foregoing motion passgd with the following vote: Neal, Chesney, Colmenero, Cooper,
Garrett, Kelly, Kinnison, Nbbyola and Scott, voting "Aye".
9. Motion autlnonnzing the Cit
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Tibun on, Inc. off n eniout, California in an amount not to enc.,ed
10. MOTION NO. 2003-287
Motion authorizing the Ciy Manager or his designee to execute a 36 month lease with
Durrill Properties for the Facility space to operate the Municipal Juvenile Court in the
amount of $96,717. The letase is subject to annual appropriation of funds. The first year's
funds of $32,239 have beeb budgeted in the FY 2003-2004 budget of the Corpus Christi
Municipal Court through a state grant for that purpose.
The foregoing motion passd with the following vote: Neal, Chesney, Colmenero, Cooper,
Garrett, Kelly, Kinnison, Loyola and Scott, voting "Aye".
12. MOTION NO. 2003-288
Motion authorizing pay nt to the Corpus Christi Regional Economic Development
Corporation in the amount 4 f $37,500 for preparation of an application for New Markets Tax
Credits and a detailed redevelopment plan for a portion of the Northside.
The foregoing motion passed with the following vote: Neal, Chesney, Colmenero, Cooper,
Garrett, Kelly, Kinnison, Loyola and Scott, voting "Aye".
13.a. RESOLUTION NO. 025438
Resolution determining the necessity for and ordering the improvement of the following
highway in Corpus Christi, Nueces County, Texas:
Laguna Shores Road from Mediterranean to Caribbean, specifying that certain of these
improvements will be paid for partly by the City and partly by assessments while others will
be paid for entirely by assessments; and directing the City's Director of Engineering
Services to file a notice of proposed assessments with the Nueces County Clerk.
The foregoing resolution passed with the following vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
Minutes - Regular Council Meeting
August 26, 2003 - Page 4
13.b. RESOLUTION NO. 025439
Resolution approving plans and specifications for improvements to the following highway
in Corpus Christi, Nueces ounty, Texas:
Laguna Shores Road fro Mediterranean to Caribbean, approving the Director of
Engineering Services Projec Construction Cost Estimate including an estimate of the portion
of costs to be paid by the ity and the portion to be paid by assessments; setting a Public
Hearing on these proposed a sessments to occur during the September 30, 2003 City Council
Meeting; directing the City Secretary to arrange to Publish Notice of this Public Hearing;
and ordering the Director f Engineering Services to provide written notice of the Public
Hearing to property owner
The foregoing resolution passed with the following vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
15. MOTION NO. 2003-290
Motion authorizing the City Manager or his designee to execute a construction contract with
DMB Construction of Corpus Christi, Texas in the amount of $56,324.62 for the Wood
River Drive (River Park Drive 20 -foot alley) Drainage Improvements.
The foregoing motion pas4d with the following vote: Neal, Chesney, Colmenero, Cooper,
Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
16. MOTION NO. 2003-291
Motion authorizing the city Manager or his designee to execute a construction management
services contract in the ampunt of $50,400 with Engineering & Construction Management
Services of Corpus Christi, Texas for various projects associated with the O. N. Stevens
Water Treatment Plant.
The foregoing motion passed with the following vote: Neal, Chesney, Colmenero, Cooper,
Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
17. RESOLUTION NO. 025441
Resolution authorizing the City Manager or his designee to execute an amendment to the
Local Transportation Project Advanced Funding Agreement for the State of Texas to
reimburse the City 100% of costs incurred for engineering services for the Bay Trail Phase
3 Project.
The foregoing resolution passed with the following vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
Minutes - Regular Council Meeting
August 26, 2003 - Page 5
18.a. RESOLUTION NO. 025442
Resolution authorizing the City Manager or his designee to execute a joint use agreement
with the Texas Department of Transportation for joint usage of the State Highway 44
Clarkwood Relief Route Right -of -Way - 48 -inch Water Line.
The foregoing resolution passed with the following vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
18.b. MOTION NO. 2003-292
Motion authorizing the Cit Manager or his designee to execute Change Order No. 3 with
Garrey Company of Fort orth, Texas in the amount of $1,134,955.62 for the Southside
Water Transmission Main hase 2, 2A, 3 - Clarkwood Relief Route 48 -inch Water Line
Adjustment/Future Connec ion and Interconnection at Farm -to -Market 43 and Weber Road.
The foregoing motion pasd with the following vote: Neal, Chesney, Colmenero, Cooper,
Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
18.c. MOTION NO. 2003-293
Motion authorizing the City Manager or his designee to execute Change Order No. 1 with
Reynolds Inliner, LLC of Baytown, Texas in the amount of $40,799 for the Broadway Basin
SSO-I/I and Rehabilitation Stage 2 - Clarkwood Relief Route Sewer Line Rehabilitation.
The foregoing motion passed with the following vote: Neal, Chesney, Colmenero, Cooper,
Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
19.a. ORDINANCE NO. 025443
Ordinance appropriating $277,154.07 from Reserve for 911 Wireless Service in the General
Fund; amending the FY 21003-2004 budget adopted by Ordinance No. 025394 to increase
appropriations by $277,154.07 in the 1020 General Fund, Police Department Budget to pay
the Coastal Bend Council of Governments for six months operation costs for 9-1-1 system
during the transition period under the settlement agreement with the Texas Commission on
State Emergency Commurlications Commission and to pay for other operational expenses.
The foregoing ordinance passed with the following vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
Minutes - Regular Council Meeting
August 26, 2003 - Page 6
19.b. MOTION NO. 2003-294
Motion authorizing payment of $242,154.07 to the Coastal Bend Council of Governments
for six months operation costs for 9-1-1 system during the transition period under the
settlement agreement with the Texas Commission on State Emergency Communications.
The foregoing motion passed with the following vote: Neal, Chesney, Colmenero, Cooper,
Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
20. RESOLUTION NO. 0254414
Resolution authorizing theity Manager or his designee to submit a grant application in the
amount of $220,646 to the Ijnited States Department ofJustice, Bureau ofJustice Assistance
for funding eligible under the FY 2003 Local Law Enforcement Block Grant Program to
purchase law enforcement equipment for the Police Department.
The foregoing resolution passed with the following vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Kignison, Noyola and Scott, voting "Aye".
21.a. RESOLUTION NO. 025445
Resolution authorizing the City Manager or his designee to accept a grant from the Coastal
Bend Regional Advisory Council in the amount of $9,051.93 to be used for the purchase of
equipment, supplies and sdrvices associated with automating Emergency Medical Service
patient records for the Corpus Christi Fire Department.
The foregoing resolution passed with the following vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
21.b. ORDINANCE NO. 025446
Ordinance appropriating a $9,051.93 grant from the Coastal Bend Regional Advisory
Council in the No. 1062 Fire Grants Fund to purchase equipment, supplies and services
associated with automating Emergency Medical Service patient records for the Corpus
Christi Fire Department.
The foregoing ordinance passed with the following vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
22.a. RESOLUTION NO. 025447
Resolution authorizing the City Manager or his designee to accept a grant from the Texas
Department of Health in the amount of $249,939 for personnel, fringe benefits, travel,
supplies and other miscellaneous expenses to assist in upgrading to a Level B Laboratory.
The foregoing resolution passed with the following vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
Minutes - Regular Council Meeting
August 26, 2003 - Page 7
22.b. ORDINANCE NO. 025448
Ordinance appropriating a pant in the amount of $249,939 from the Texas Department of
Health for personnel, fringe benefits, travel, supplies and other miscellaneous expenses to
assist in upgrading to a Level B Laboratory in the No. 1066 Health Grants Fund.
The foregoing ordinance passed with the following vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
23.a. RESOLUTION NO. 025449
Resolution authorizing the City Manager or his designee to accept a grant from the Texas
Department of Health in th� amount of $41,407 for personnel, fringe benefits, travel, and
supplies for an immunizati n program.
The foregoing resolution passed with the following vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Kirnison, Noyola and Scott, voting "Aye".
23.b. ORDINANCE NO. 02545(
Ordinance appropriating a grant in the amount of $41,407 from the Texas Department of
Health for personnel, frine benefits, travel, and supplies, to maintain an immunization
program in the No. 1066 alth Grants Fund.
The foregoing ordinance passed with the following vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Kitnison, Noyola and Scott, voting "Aye".
24.a. RESOLUTION NO. 025451
Resolution authorizing the City Manager or his designee to accept a grant from the Texas
Department of Health in the amount of $149,797 to fund the elimination and control of
Tuberculosis in Nueces County.
The foregoing resolution passed with the following vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
24.b. ORDINANCE NO. 025452
Ordinance appropriating a grant in the amount of $149,797 from the Texas Department of
Health to fund the elimination and control of Tuberculosis in the No. 1066 Health Grants
Fund.
The foregoing ordinance passed with the following vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
Minutes - Regular Council Meeting
August 26, 2003 - Page 8
25. MOTION NO. 2003-295
Motion rescheduling the public hearing on the proposed Rodd Field Public Improvement
District to September 16, 2003.
The foregoing motion passed with the following vote: Neal, Chesney, Colmenero, Cooper,
Garrett, Kelly, Kinnison, oyola and Scott, voting "Aye".
26. RESOLUTION NO. 025453
Resolution authorizing the City Manager or his designee to execute an interlocal
governmental agreement irvith the Port of Corpus Christi Authority to include utility
adjustment and relocation Work as part of the Joe Fulton International Trade Corridor and
for the City to provide funs to the Port of Corpus Christi Authority.
The foregoing resolution assed with the following vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Ki nison, Noyola and Scott, voting "Aye".
Mayor Neal opened discussion on Item 11 regarding the Texas Commission on
Environmental Quality. Council Member Scott remarked that he understood that these monies
would go to Texas A&M University -Kingsville and Texas A&M University -Corpus Christi. Mr.
Ron Barnard, Environmental Pr*grams Specialist, explained that this was the exact amount
approved at the last biennium. He said that the bulk of the money went to Texas A&M University -
Kingsville and Texas A&M University -Corpus Christi for research and planning efforts. He said
that a portion was retained by the city as reimbursement for staff time spent on the projects. Council
Member Kelly asked how these projects were coordinated with air quality projects at the refineries.
Mr. Barnard replied that the Port Industries group was quite active with the Air Quality Committee.
He said that staff worked through this committee to administer the projects. Mr. Kelly asked if staff
was obtaining raw data from the Port Industries. Mr. Barnard replied affirmatively.
City Secretary Chapa polled the Council for their votes, and the following items passed with
the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott,
voting "Aye".
11.a. RESOLUTION NO. 0254436
Resolution authorizing the City Manager or his designee to execute a State Funded Grant
Agreement with the Texas Commission on Environmental Quality in the amount of
$884,600 for air quality planning activities.
11.b. ORDINANCE NO. 025437
Ordinance appropriating $884,600 from the Texas Commission on Environmental Quality
in the No. 1071 Community Enrichment Grants Fund for air quality planning activities.
Mayor Neal opened discussion on Item 14 regarding the liner improvements for the J.C.
Elliott Landfill. City Secretary Chapa stated that Item 14b needed to be amended to reflect a new
Minutes - Regular Council Meeting
August 26, 2003 - Page 9
contract amount, from $1,332,451 to $1,332,461. A motion was made, seconded and passed to
amend Item 14 to reflect $1,332,461 as the new amount. City Secretary Chapa declared an
emergency and polled the Council for their votes. The following items passed as amended with the
following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott,
voting "Aye".
14.a. ORDINANCE NO. 025440
Ordinance appropriating $36,624.27 from unappropriated interest earnings of the Public
Health and Safety Capital mprovement Fund No. 3357 for Sector 10 Liner Improvements
(J.C. Elliott Landfill) and t allow Fund Closure; amending FY 2002-2003 Capital Budget
adopted by Ordinance No. 025144 to increase appropriations by $436,624.27.
14.b. MOTION NO. 2003-289
Motion authorizing the City Manager or his designee to execute a construction contract in
the amount of $1,332,461 with LD Kemp Excavation, Inc., of Fort Worth, Texas for the
Sector 10 Liner Improvements (J.C. Elliott Landfill). AS AMENDED
Mayor Neal opened discussion on Item 27 regarding amendments to the Zoning and Platting
Ordinances. Council Member Kelly asked if the city was in the process of waiving its platting fees.
City Manager replied that the city was actually wanting to move the zoning and platting fees from
the zoning and platting ordinance and place them in the revenue ordinance to simplify the
administrative process required to make changes to the fee structure. Acting City Attorney Reining
added that Item 35 would re -adopt the fees in the city code. City Secretary Chapa polled the Council
for their votes, and the following, ordinances passed with the vote: Neal, Chesney, Colmenero,
Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
27.a. ORDINANCE NO. 025454
Amending the Zoning Ordinance by deleting the published fees. (First Reading - 8/19/03)
27.b. ORDINANCE NO. 025455
Amending the Platting Ordinance by deleting the published fees. (First Reading - 8/19/03)
* * * * * * * * * * * * *
Mayor Neal deviated from the agenda and referred to the presentations on the day's agenda.
City Manager Noe introduced Mr. Ron Kitchens, President and CEO of the Corpus Christi Regional
Economic Development Corporation (EDC), to provide a quarterly update. Mr. Kitchens asked Mr.
Foster Edwards, President of the Corpus Christi Industrial Foundation, to brief the Council on a new
development regarding his organization. Mr. Edwards briefed the Council on the Board of
Directors's plans to turn over control of the organization to the EDC. He provided a brief summary
on the foundation's history and background. He said that the foundation primarily sold and bought
properties in the city. He stated that the foundation may be useful to the EDC in the future as a
vehicle to acquire property. Mr. Edwards announced the past and current members of the Industrial
Minutes - Regular Council Meeting
August 26, 2003 - Page 10
Foundation, thanking them for their service. He reported that the foundation had recently sold all
of its properties, and currently had $94,000 in assets. He presented Mr. Ray Hayes, Chairman of
the EDC Board, with a check for $94,000 to finalize the arrangement.
Mr. Kitchens provided a b of report on the EDC's activities this quarter. He reported on
developments in the Relocation P ogram, saying that the EDC had provided assistance to 900
families this year-to-date. He bri fed the Council on the various components of the Relocation
Program, including the resume distribution service, the spousal assistance program and the Navy
Pre -Welcome Briefings. He also described the EDC's efforts to assist naval student aviators in
response to the shortage of housing in the community. He spoke about the wide variety of jobs
advertised on their website, JobsInlCorpusChristi.com.
Mr. Kitchens mentioned that the EDC had recently been named one of the Top Ten
Economic Development Groups in the United States by Site Selection Magazine. He also referred
to a list of Compass Award Honorees, companies that had created 20 or more jobs.
Mr. Kitchens discussed various community achievements, including the following: Most
Drivable City (April 2003); Top 20 Most Affordable Housing (Forbes Magazine, May 2003); Top
20 Places to do Business (Forbes Magazine, May 2003); Top 8 Beach Towns for Retirement (Where
to Retire magazine, December 2002); 31s' Best Performing Economy in the United States (Milken
Institute); and All -America City (2003).
Mr. Kitchens discussed the EDC's new measurement for growth, involving a ratio of the
number of water meters in city and the number of residents. Using this measurement, Mr. Kitchens
stated that the EDC estimated that there were 23,000 new residents in the city during the last three
years. Mr. Kitchens also reported that a total of 5,049 new jobs were created in 2002-2003. Of
these, he said that 2,295 were primary jobs and 2,754 were secondary jobs. He said that 51 percent
of the jobs were created by existing companies and 49 percent were created by relocated companies.
He noted that in the past, 70 percent of new jobs were created due to expansions of existing
companies. The average wage for the jobs was $17.81 an hour, an increase of $3 from last year.
Mr. Kitchens commented that 79 percent of the new companies were offering healthcare and
retirement benefits.
Regarding the financial impact of the new jobs, Mr. Kitchens stated that the total new annual
sales and property tax collection would be $17,007,831. He provided a list of companies
announcing new jobs in 2002-2003. He also provided information on the return on the investment
for the community, saying that for every dollar invested in the EDC by either the public or the
private sector, $14.17 were generated.
Mr. Kitchens stated that between 2000-2003, there were 28,796 new jobs created. He
emphasized that this was a net amount because the EDC began each year assuming a job deficit of
450. He said that 84 companies and organizations had invested $2,014,415,00 in the community
over the last three years. He noted that the rate of return was $22.49 for every dollar invested. Mr.
Kitchens thanked the Council and the City of Corpus Christi for the funding they provided for the
EDC, saying that they could not exist without it.
Finally, Mr. Kitchens provided an update on the future for the EDC. He stated that the EDC
Minutes - Regular Council Meeting
August 26, 2003 - Page 11
was targeting six industry clusters, including aerospace, back office, petrochemical, marine
fabrication, automotive and marine science. He noted that the last two industries were new on the
list. He said that the EDC was planning to make new contacts using direct mail, telephone calls,
familiarization events, awareness events and impact visits. He stated that the EDC visited
approximately 500 existing compapies per year. Finally, Mr. Kitchens discussed different methods
of increasing the city's visibility He said that the Board of Directors and staff had made a
commitment to raise an additiona $150,000 this year from the private sector to fund a national
public relations campaign.
Council Member Chesney asked Mr. Kitchens why people did not seem to be aware of the
successes the city had experienced in job creation. Mr. Kitchens replied that people inherently
seemed to focus on the negative and were often too busy to delve deeper into the news. He said that
the EDC was committed to wotik even harder to raise awareness in the about the positive
developments in the city. He said that it seemed like people outside of the community were more
aware of the positive news than those in the community. Council Member Chesney commented that
there should be more efforts to raise awareness in the community. Mr. Kitchens said that the EDC
had used utility bill inserts and the city's website as successful methods to disseminate information
to the community. Mr. Chesney remarked that another perception in the community was that the
new jobs the EDC was touting were not high -paying jobs. Mr. Kitchens replied that the average
wage for the new jobs created was $17.61 an hour. Mr. Chesney commented that he hoped that
people would use the EDC's services more often. Finally, he asked Mr. Kitchens to provide him
with the list of community achievements.
Council Member Scott asked how much of the $1,200,000 the EDC had received in funding
last year was from the public sector. Mr. Kitchens replied that the city provided $475,000, the Port
contributed $200,000, and the county had contributed $55,000. He added that this year's budget
would be comprised of 43 percent from the public sector and 57 percent from the private sector.
Mayor Neal called a brief recess so he could present proclamations.
* * * * * * * * * * * * *
The Council returned from recess, and Mayor Neal deviated from the agenda and referred
to Item 28. A motion was made, seconded and passed to open the public hearing on the following
item:
28. Public Hearing on the proposed ad valorem tax revenue increase.
Ms. Constance Sanchez, Acting Director of Finance, reported that staff was recommending
the same property tax rate as last year, 0.644175 per $100 valuation. She said that although the
property tax rate was the same as last year, the effective tax rate was lower than the recommended
rate. She stated that this was due to increased property values. She explained that the effective tax
rate was the rate needed to generate the same amount of taxes as last year. Thus, she said that if
property values increased, then the rate decreased. She added that using the appraised values for
2003, the average homeowner would see an increase in their bill of about $31.06. She concluded
that staff was recommending that the proposed rate of 0.644175 be voted on by the Council at their
September 9, 2003.
Minutes - Regular Council Meeting
August 26, 2003 - Page 12
Mayor Neal asked for public comment. Mr. Bill Kopecky, 3609 Topeka, commented that
the city should reduce the tax rate by at least two cents. Mr. J.E. O'Brien, 4130 Pompano, also
commented that the city should consider reducing the tax rate.
* * * * * * * * * * * * *
Mayor Neal referred to Item 29, and a motion was made, seconded and passed to open the
public hearing on the following zoning case:
29.a. Continuation of public he
ng to consider tabling of Case No. 0603-04, Paul S. Vera.
City Secretary Chapa said that staff was recommending that the Council table the item to
either November 18, 2003 or December 9, 2003. Mr. Michael Gunning, Director of Planning, said
that staff had recommended two dates before and after the 90 -day time frame the Council had
requested because the meeting date closest to the time frame, November 25, 2003, was cancelled.
He said that after speaking with the applicant's engineer, Mr. Victor Medina, staff was
recommending that the Council table the case to November 18, 2003. Mr. Gunning said that staff
was advised by Mr. Medina that Mr. Vera would use that time to make every effort to bring the
property into compliance. Mr. Gunning noted that there was one item that the applicant would not
be able to rectify until the special permit was approved, namely the illegal building expansion. He
said that the plat had been submitted last week and fees of $2,400 were paid. He anticipated that
the plat should be filed for the record within the next five days.
Council Member Garrett made a motion to table this case to November 18, 2003, seconded
by Council Member Cooper, and it passed unanimously. A motion was made, seconded and passed
to close the public hearing.
29.b. MOTION NO. 2003-296
Motion to table Case No. 0603-04, Paul S. Vera to November 18, 2003.
Mayor Neal referred to Item 30, and a motion was made, seconded and passed to open the
public hearing on the following case.
30. Case No. 0603-03, Yolanda Rodriguez: A change of zoning from a "B-1" Neighborhood
Business to a "B-4" General Business District on Koolside Addition, Block 6, Lot 9, located
on the west side of Airline Road and approximately 600 feet south of Gollihar Road.
City Secretary Chapa said that the Planning Commission and staff were recommending the
denial of a "B-4" General Business District. Mr. Gunning replied that the applicant was willing to
accept a special permit. He said that the purpose of her request was to install a auto sales use on the
first floor and a residential unit on the second floor of the subject lot. He said that the auto sales use
would be combined with an auto window tinting service. He said that both auto uses combined with
a residential use would require a "8-4" permit. Mr. Gunning stated that he felt that the introduction
of an auto sales use in the mid -block of Airline Road on the west side was intrusive and detrimental
to the residential properties on Dorothy Drive that back up onto the property. There was no public
comment. Council Member Scott made a motion to close the public hearing, seconded by Council
Minutes - Regular Council Meeting
August 26, 2003 - Page 13
Member Garrett, and it passed.
City Secretary Chapa polled the Council for their votes, and the following ordinance failed
with the following vote: Neal, Chesney, Colmenero, Cooper, Kelly, Kinnison, Noyola and Scott,
voting "No"; Garrett was absent.
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FAILED
Mayor Neal referred to Itenp 31, and a motion was made, passed and seconded to open the
public hearing on the following item:
31.a. Public hearing to consider, 'prioritize and nominate applications to the Texas Department of
Economic Development for Commercial Revitalization Deduction allocations.
City Secretary Chapa noted that Council Member Scott was abstaining from the vote and
discussion on this item. Mr. Mark McDaniel, Executive Director of Support Services, referred to
a list of five proposed projects for the 2003 allocations. He said that the City of Corpus Christi can
nominate $12 million of Commercial Revitalization Deductions annually. He provided the
following brief overview of each of the projects: Coastal King Ltd., a home office for a restaurant
franchisee; Morgan Street Seafood Market, an expanded facility for a seafood company; Crown
Development Southwest, Inc., a mixed-use facility; B.E. Beecroft, a renovation of a construction
company office; and the Bayfront Medical Plaza, a medical office facility.
Mr. McDaniel noted that the recommended allocation amount for 2003 was $12 million,
saying that the city would receive that amount annually through 2009. He said that staff was
proposing that the Council take action to recommend to the Texas Department of Economic
Development that the city award these aforementioned projects in the amounts shown, referring to
a chart in their packets. He explained that this year's process was much more rigorous than in past
years. Although the city had received a great deal of interest in the allocations, he stated that these
five projects were the only complete applications received. He emphasized that staff had obtained
contracts on property, letters authorizing loans from banks, and business plans from some facilities
to evaluate the viability of the projects.
Mr. McDaniel mentioned that some of the allocations were split, with a forwarding binding
allocation in future years to accommodate all the projects. He said that staff evaluated each project's
ability to spend the allocation and take the credits over a period of years. Finally, he added that
another benefit from splitting the allocation over a period of years was that if for some reason the
project was not able to be completed, then the second half of the allocation could be set aside for
another project.
Mr. McDaniel concluded that staff was recommending that all five projects receive
allocations. He asked Ms. Patty Garcia with the Economic Development Office to provide more
Minutes - Regular Council Meeting
August 26, 2003 - Page 14
detail on each project. Ms. Garcia reported that the first project, Coastal King Ltd., was designed
to renovate a building to lease it to a company that owned and operated a number of Burger Kings
in South Texas. She said that the project would retain 16 jobs and create 11 new jobs. Regarding
the second project, the Morgan Street Seafood Market, Ms. Garcia said that the company had
completed an expansion of their urrent facility to increase their freezer capacity to allow for
exporting seafood nationwide. She noted that the project would retain 12 jobs and create five new
jobs. The third project Ms. Garcia povered was the B.E. Beecroft project, designed to renovate an
existing building they currently o cupied by adding new offices on the second floor, a training
facility and expanded record storag . She said that the project was close to completion. She noted
that the project would retain 29 job in the area. The fourth project was the Bayfront Medical Plaza
which was designed to house me ical offices. She said that the project would be beautifully
landscaped and would include so e commercial space for laboratory and coffee bar businesses.
Finally, Ms. Garcia reviewed the ast project, Crown Southwest Development Inc., a proposed
mixed use facility. She said that th developers were planning to have commercial uses on the first
floor and residential uses on the remaining six floors.
Mayor Neal asked Mr. McDaniel ifthere was some milestone set each year for each project
to determine whether they were prcigressing properly. He also asked how many projects approved
for funding last year did not come to fruition. Mr. McDaniel answered the latter question first,
saying that he did not have an exact figure, but that it was well over 50 percent. He added that last
year's allocation was unusual in that the city had received an additional allocation from El Paso's
renewal community funds. He said that the result was that the city had enough credits to fund all
the projects requesting funding. Mr. McDaniel reiterated that this year's process was much more
rigorous. Regarding a milestone, Mr. McDaniel replied that the projects were required to spend 10
percent of the initial allocation within six months of approval from the Texas Department of
Economic Development. He added that for most of these projects, they had a contract that would
exceed 10 percent on the land or the building alone. Mayor Neal emphasized that he wanted staff
to monitor the projects closely because the credits presented a unique opportunity to revitalize the
area and he wanted to see them put to good use. Mr. McDaniel replied that staff had understood the
Council's concerns expressed at a previous meeting and had made the process more rigorous in
response. He cautioned the Council that there would always be an element of risk involved since
these were privately -funded ventures. He also mentioned that two of the projects were almost
complete.
Council Member Kinnison asked for a status report on the two largest projects, the Crown
Southwest Development and Bayfront Medical Plaza Ltd. Mr. McDaniel replied that they had
contracts on property and had obtained loan commitments. He said that each group had
representatives in the audience. Mr. Walter Wiznia, one of the owners of the Bayfront Medical
Center, reported that they were scheduled to close on the property on September 15 and were
working with the doctors to determine their needs for the building. He said that at this point, they
were just waiting for the allocation. Mr. Kinnison asked what their target date was for beginning
construction on the building. Mr. Wiznia replied that site construction was scheduled for October.
Ms. Gina Lemoine, one of the owners of the Crown Southwest Development Inc., made reference
to a letter from Corpus Christi Bank and Trust securing the financing for this project. She said that
they had a waiting list for the apartments and were working on leasing the retail space. She assured
the Council that they were ready to proceed with the project and would appreciate the Council's
support.
Minutes - Regular Council Meeting
August 26, 2003 - Page 15
Council Member Kelly asked what level of interest there was in these credits this year. Mr.
McDaniel replied that he did not have a firm number because the only complete applications were
the ones submitted by the aforementioned projects. He said that the more rigorous requirements
served to elicit responses only from those projects that were at an advanced stage. Mr. Kelly asked
if it was staff's estimation that all Qf these projects were viable and would be completed within the
parameters ofthe program. Mr. MDaniel answered that there was an element of risk, but that it was
staff's recommendation to approv+ them because they were good projects.
Mr. Colmenero commented that the new selection process was laudable and that these
projects were supported by local professionals who understood the local market. Mr. Noyola also
expressed concern that the majority of last year's funding was not put to good use and said that he
wanted staff to make sure that it would not happen again. He commented that he felt that these were
good projects. A motion was made, seconded and passed to close the public hearing on item 31.
Mr. Chesney commented that he approved of staff's decision to split the allocations for some ofthe
projects because it would allow other projects to receive the allocations if the original projects were
to fail.
City Secretary Chapa polled the Council for their votes, and the following resolution passed
with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, and Noyola,
voting "Aye"; Scott abstained.
31.b. RESOLUTION NO. 025456
Resolution nominating projects to the Texas Department of Economic Development for
Renewal Community Commercial Revitalization Deductions.
* * * * * * * * * * * * *
Mayor Neal deviated from the agenda and referred to the second presentation on the day's
agenda regarding Local Homebuyer Programs for city employees. Ms. Mary Dominguez, Director
of Neighborhood Services, began her report by providing a number of statistics. She said that the
City of Corpus Christi employed over 2,900 employees and that 42 percent of them earned up to
$25,800. She said that the average cost of a single family home in Corpus Christi was over
$100,000. She stated that these statistics demonstrated that the need for homebuying assistance was
critical.
Ms. Dominguez reported that staff had contacted local banks and lenders regarding possible
programs for city employees as the Council had directed. She said that the prospective lenders had
met with staff to discuss programs, issues and concerns. Ms. Dominguez stated that information
packets were requested from the lenders and that the information submitted was being presented
today.
Ms. Dominguez briefly discussed the programs available from Coastal Banc ssb since a
representative was not available. She said that Coastal Banc was offering homeownership programs
for city employees, homebuyer counseling and competitive rates. She noted that the programs were
designed to meet the HUD income guidelines that the city used for their internal programs.
Minutes - Regular Council Meeting
August 26, 2003 - Page 16
The next representatives to present were from GMAC/Frost Bank. Mr. Mike Carroll with
Frost Bank reported that although Frost Bank was not in the mortgage business, they had an
association with GMAC to provide assistance to their bank customers. He said that GMAC
representatives were available at Frost Bank branches. He introduced Mr. Tom Hasker, District
Manager for GMAC, to discuss the available programs. Mr. Masker said that GMAC's goal was to
make homebuying less intimidating and less unpleasant for their customers. He said that GMAC
had created a loan program for city employees that would allow for less needed documentation.
Along with this, he said that on-site representatives would be available to discuss the different types
of loan programs on an individtjal basis. Mr. Hasker observed that many people considered
themselves to be ineligible to buy a home. Mr. Hasker stated that GMAC was offering reduced
interest rates and reduced closing costs. He mentioned a down payment assistance loan program that
was independent of any other progpams offered by the city or county. He also mentioned assistance
for those individuals who were "credit -challenged". In addition, Mr. Hasker mentioned that GMAC
could offer a discounted vehicle purchase program for General Motors vehicles.
Council Member Kelly asked Mr. Hasker to provide a "ballpark" figure that the average city
employee would qualify for to purchase a home. Mr. Hasker replied that depending on income, debt
structure and the program, the average city employee would probably qualify for a $55,000 to
$65,000 home. Mr. Kelly commented that he was glad to see that counseling was a component of
the GMAC program. Mr. Kelly asked if manufactured homes would qualify for this program. Mr.
Hasker replied affirmatively, but noted that there were a few more restrictions placed on these types
of homes depending on their structure and placement. Mr. Kelly asked how much participation
GMAC was anticipating from city government. Mr. Hasker replied that he did not have a set
number, but would like to see as much participation as possible. Mr. Kelly asked if this program
could be expanded to employees of other government entities or even the general public. Mr.
Hasker replied affirmatively, saying that GMAC was treating this as a pilot program. He said that
the next step would be to expand it to family members of city employees.
The next representative was from First Commerce Bank. Mr. Ruben Rodriguez, Senior
Vice -President, briefly outlined an existing program that First Commerce was offering to the general
public. He said that First Commerce Bank preferred that applicants go through a mortgage company
first to see if they qualified. If they did not qualify, then Mr. Rodriguez said that First Commerce
could provide an alternative with their program. He said that there were two basic qualifications for
the program: maximum income of $33,850 per year and first-time homebuyer status. He cited the
following program benefits: five percent down payment; no origination fee; no application fee; no
appraisal fee; and no credit report fee. He noted that the maximum loan amount was $50,000. He
said that First Commerce allocated $1 million toward the purchase of these homes and it was
exhausted every year.
Council Member Kelly asked if manufactured homes or modular homes would qualify for
this program. Mr. Rodriguez replied that they would not qualify. Mr. Kelly asked if most of their
mortgages were going towards existing homes. Mr. Rodriguez replied affirmatively.
The next representative was from First Community Bank. Ms. Ellie Ahumada with their
Home Loan Center briefly outlined their available programs including the following: Freddie Mac
100, Fannie Mae 100, Sub -prime loans for customers with credit problems; Non -conforming loans
for hard to document income; and a rate reduction reward program. Ms. Ahumada commented that
Minutes - Regular Council Meeting
August 26, 2003 - Page 17
interest rates were very low, so now would an opportune time to enter the homebuying market. She
said that most people were not aware of the variety of the programs available, and that her bank was
committed to inform and assist their customers through the process. She mentioned that First
Community Bank currently assisted customers with the city's Down Payment Assistance Program.
Council Member Kelly asked if manufactured homes would be eligible for these programs.
Ms. Ahumada replied that although irst Community Bank was not offering loans for manufactured
homes, they did business with inve tors who were willing to take on this type of mortgage.
The next representative wa$ from Wells Fargo Home Mortgage. Mr. Jesus "Jesse" Rojas
briefed the Council on a new development regarding the Wells Fargo Mortgage operation. He said
that the South Texas area had been [chosen to have a local processing center which would bring 30
new jobs to the area. He also discussed Wells Fargo's involvement with the Corpus Christi Housing
Authority and Robstown Housing Authority to help their residents become homeowners. Mr. Rojas
also mentioned that Wells Fargo had a department that specialized in counseling each customer
throughout the process.
Mr. Rojas briefly described the programs Wells Fargo had to offer, including the
Neighborhood Home Loan Partnership program, conventional, FHA and government financing
loans. He mentioned that Wells Fargo was the largest mortgage servicer in the country, which
allowed them to tailor certain programs to fit almost any type of borrower. He added that
manufactured homes and modular homes were eligible for loans through Wells Fargo.
Council Member Kelly asked if staff was prepared to counsel individuals about the various
programs that were available and help them identify the programs for which they would qualify.
Assistant City Manager Margie Rose replied that the objective was to send a survey to city
employees to determine the level of interest in these programs. Ms. Rose said that then staff would
establish counseling programs to assist the employees. She said that staff had already contacted
various agencies for guidance through the process. Mr. Kelly replied that he wanted to be certain
that the counselors would be familiar with each of the programs the institutions had offered today.
Ms. Rose answered that the objective was to coordinate efforts with the banks and other agencies
to ensure that they were on the same accord regarding the programs. Mr. Kelly asked how the city
was integrating its own programs with the banks's programs. Ms. Rose replied that the city would
provide information about its programs along with the others. Mr. Kelly expressed his concern that
he had heard comments from individuals who had attempted to obtain information on the city's
homebuyer assistance programs, but were discouraged because they had been referred to multiple
offices and then handed a stack of papers to fill out. Ms. Rose replied that working through the
Human Resources department, staff would ensure that employees asking for information on
homebuyers programs would not merely be given a packet and then sent away.
Mr. Kelly asked how long it would take to implement this process. Ms. Rose replied that
staffs objective was to begin implementation at the city's Health Fair in November by having
representatives from the banks available to answer questions and provide information. City
Manager Noe added that virtually every city employee attended the Health Fair, so having a separate
housing fair at that time would allow for maximum exposure. He stressed that staff would be
working on implementation between now and November, but that the Health Fair would be the big
"kick-off". Mr. Kelly replied that he supported the idea, but wanted to ensure that the program
Minutes - Regular Council Meeting
August 26, 2003 - Page 18
would be sustained throughout the year, not just an annual event.
Mr. Kelly asked how effective the city could be at identifying and making available in -field
lots for building new homes. City Manager Noe replied that this could be a viable resource as part
of the neighborhood initiative, but he did note that some employees might be better served buying
existing homes because of cost. A discussion ensued regarding the possibility of offering
foreclosed properties at a reduced price to individuals who wanted to build new homes. Acting City
Attorney Reining stated that the city was investigating ways to accelerate the foreclosure of
properties to make it available for }productive use, but had not finalized anything yet. City Manager
Noe added that staff was hopeful that a portion of the affordable housing monies from the 4A board
could be used to facilitate the pro ess as an affordable housing initiative. Mr. Kelly said that he
hoped that the program would eventually be expanded directly into the neighborhoods. City
Manager Noe replied that the initial concept was to use this program as a pilot program to duplicate
with public sector employers and possibly private sector employers. He said that staff would look
at expanding the programs to the general public in the future. Mr. Kelly thanked staff and the
banking institutions for their efforts.
Ms. Dominguez concluded the presentation by saying that many area lenders were able to
offer customized loan programs for city employees. She said that dissemination of information was
important to help employees understand and to simplify the home buying process. She added that
city employees were eligible to use the Neighborhood Services department programs as well as
lender programs for home buying assistance if they qualify. Finally, Ms. Dominguez stated that
employees should contact the Human Resources department for more information, or the
Neighborhood Services department.
Council Member Colmenero spoke in support of surveying city employees to determine the
level of interest and mentioned the option of collective neighborhood renovations and improvements
to existing facilities. Council Member Noyola thanked staff and the banks for their efforts in
furthering this program. In response to Mr. Noyola's question, City Manager Noe said that surveys
would be given to department heads to ensure a better response and he said that the information
would also be included in the employee newsletter.
* * * * * * * * * * * * *
Mayor Neal deviated from the agenda and opened discussion on Item 42 regarding the
Nueces River Authority. Ms. Constance Sanchez, Acting Director of Financial Services, reported
that the item dealt with the possible refunding of two small issues of water supply revenue bonds
for the Nueces River Authority. She said that the aggregate principal was $4.29 million. Ms.
Sanchez noted that the net present value benefit would be $137,159.13, a total savings of about
$23,000 for six years. She said that last Friday, the Nueces River Authority board gave their
executive director the same authority that this proposed ordinance would give the city manager. She
concluded that staff was recommending that the ordinance be passed. There was no public
comment.
City Secretary Chapa polled the Council for their votes, and the following ordinance passed
with the following vote: Neal, Chesney, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting
"Aye"; Colmenero was absent.
Minutes - Regular Council Meeting
August 26, 2003 - Page 19
42. ORDINANCE NO. 025457
Ordinance authorizing the City Manager or his designee to approve all documents and fiscal
arrangements required for the proposed sale of water supply refunding bonds by the Nueces
River Authority including the Official Statement and Bond Purchase Agreements; and
approving the form of the bond resolution adopted by the Nueces River Authority.
Mayor Neal deviated from the agenda and referred to the last presentation on the day's
agenda regarding the Automated Meter Reading (AMR) Initiative. Mr. Mark McDaniel stated that
this project was a perfect example of how the city used cross -functional teams from various
departments and from various Ievells in the organization to develop creative solutions. He said that
the project team consisted of a group of consultants from Public Technologies Inc. (PTI) and RAM
Technologies. He explained that PTI was a non-protit organization that worked with cities to
advance technology. He said that the consultants worked in conjunction with an advisory group
composed of a other municipalities nationwide that were members of PTI and had also used
automated meter reading in the past. He referred to the members of the executive steering team and
the project team, saying that Mr. Ogilvie Gericke, MIS Director, had led the project team.
Mr. McDaniel stated that the purpose of the projects was to evaluate AMR as a solution to
address the following points: current Datamatic handheld system used by meter readers was failing;
city is required to conform with legislations requiring individual meters for multi -family dwellings,
apartments and trailer parks; the city's meter infrastructure was being considered for a significant
upgrade/investment as a result of aging Water and Gas meters; and to evaluate if an automated
metering system would be more cost efficient over time compared to the current manual system.
Mr. Ogilvie Gericke, MIS Director, provided a report on the project team's progress to date.
He said that the major objectives were to conduct an AMR market assessment; review the city's
systems environment and processes; and to develop a strategy and specific recommendations for the
pursuit of an AMR solution.
Mr. Gericke reported that the team found that there were two technologies available: mobile
radio frequency (RF) and fixed network (FN). He said that the mobile radio frequency system
involved using vans equipped with radio transciever units to capture readings form utility meters
equipped with transmitter units. Regarding the fixed network system, Mr. Gericke said that it used
a stationary radio communication network to collect meter reading data from utility meters equipped
with transmitter units.
Mr. Gericke briefly discussed the characteristics of each system. Regarding the mobile radio
frequency system, Mr. Gericke said that it required vehicles and personnel to operate the vehicles;
read meters on a fixed schedule; the cost of build -out was proportional to the number of meters; and
it was a stand-alone application. By contrast, Mr. Gericke said that the fixed network system did
not require vehicles or personnel; read meters on demand; build -out in accordance with meter
reading routes and as needed; higher upfront cost to build out; and could be integrated with other
wireless applications.
Minutes - Regular Council Meeting
August 26, 2003 - Page 20
Mr. Gericke reviewed the current meter reading costs. He said that over a fifteen year
period, the total meter reading costs were projected to be $21.3 million, including the salaries for
24 current meter readers, 3 additional meter readers and the replacement of meter ready hand held
devices. He emphasized that this figure did not include the replacement cost of the meter itself. He
stated that the projections assumed a 0.9 percent growth rate for the city and 4 percent annual salary
increases for meter reading personnel.
Mr. Gericke provided AM cost projections obtained from leading AMR vendor responses
to the Request for Information sen out by staff. He said that the team was proposing a pilot project
deploying approximately 4500 m ters in two different locations. The first area was bordered by
Ayers, Kostoryz, Gollihar and S.P I.D., and was problematic because the meters were located in the
backs of the houses and were hardcr to read. The second arca was bordered by Doddridge, Alameda
and Robert, and was problematic because the lots were large so the readers had to walk a long way
between houses. He said that the pilot costs were estimated to be approximately $1 million for
either the mobile or fixed network.
To implement the project citywide, Mr. Gericke stated that there was a significant cost
difference between the two systeifs. He said that the mobile solution was less expensive, totaling
approximately $18,839,487. By contrast, the fixed network solution would cost approximately
$22,851,792.
Mr. Gericke covered the implementation strategy that the team was proposing. He said that
the systems could be implemented over a five or ten year period to defray the costs. He also
recommended the use ofa targeted approach, implementing first in difficult -to -read areas, areas with
old meters and high volume users, Finally, he recommended that the implementation be a part of
the CIP and coincide with meter upgrade and replacement programs.
Regarding the benefits of AMR, Mr. Gericke mentioned the improvement in customer
service because the system providOd more accurate and up-to-date data. He also cited an increase
in revenue since the older meters were under -registering usage. In addition, Mr. Gericke noted that
the cost of the infrastructure could be shared with other wireless systems (e.g. Work Management
System) to reduce the cost.
In conclusion, Mr. Gericke stated that the projected cost estimates and corresponding savings
opportunities indicated that AMR should be considered as a viable option. He noted that the price
difference between the two solutions differed significantly. He stated that the mobile RF AMR
solution was the most cost effective alternative if AMR was the sole application. However, he said
that FN could lend itself to other applications (CMMS and MDC/AVL) and may be the most cost
effective solution when considering all potential applications.
At this point, Mr. Gericke said that staff was requesting Council's approval to move ahead
with the RFP and Implementation Process. He also said that staff was requesting approval to
negotiate a consultant contract with PTI/RAM Technologies and then submit to Council requesting
approval of appointment. He outlined the implementation process as follows: develop RFP for the
AMR pilot solution to entertain both mobile RF and Fixed Network solutions; develop a RFP for
metering components only; select desired AMR technology and vendor; implement AMR solution
in pilot mode; conduct pilot post -implementation review; and determine the next steps based on post
Minutes - Regular Council Meeting
August 26, 2003 - Page 21
pilot implementation.
Mayor Neal asked which system was the most prevalent in cities across the country. Mr.
Gericke replied that the mobile drive-by solution was the most prevalent because it was less costly.
Mayor Neal asked which system wE s the most accurate in the long run. Mr. Gericke replied that the
Fixed Network was more accurate because it allowed for readings on demand. Mr. McDaniel added
that another benefit of the Fixed Ne work was that it could become a back-up network for the city's
other networks and that it would llow for more areas of focus. Mayor Neal asked if it would
actually take 15 years to implemen the system in the city. Mr. McDaniel replied that the objective
was to amortize the cost over enou h years where the savings would pay, to a large degree, for the
expense. He added that the figures resented today were not hard numbers, but if the Council were
to approve the RFP process, then st ffwould have more definite numbers. He said that staff felt that
the prices would probably be lowe in a competitive bid process. Mayor Neal commented that he
felt that it would be more advantageous to go with the Fixed Network system because it was more
accurate and more efficient. However, he stressed that he would like to see it implemented in a
much shorter period of time.
Council Member Colmenero commented that he also felt that the Fixed Network system
seemed to be the best option. He asked if the FN technology could be piggybacked with another
system to expedite implementation. Mr. Gericke replied affirmatively, saying that staff anticipated
cooperating with the cable franchises to use their fiber optic systems for access points.
Council Member Garrett asked if the city did all their own meter reading. Mr. Gericke
answered affirmatively, saying that the city had 24 meter readers now. Council Members Noyola
and Garrett spoke in support of the AMR initiative. Council Member Scott asked when staff would
be able to determine whether the s tstem would work. Mr. Gericke replied that the pilot program
could be implemented by the beginning of next year and that by the end of next year, staff would
hope to report that it was working. City Manager Noe added that the Council would be presented
with options during the Fall 2004 CIP budget process. Council Member Scott asked if the reduction
in operating costs would fully offsiet the capital costs. Mr. Gericke replied affirmatively, over a
fifteen year period.
Council Member Cooper asked how staff would know if a constituent's meter was
malfunctioning. Mr. Gericke replied that a field person would be dispatched to examine the meter.
Ms. Cooper asked if the transmission would indicate that there was a problem with a meter. Mr.
Gericke replied that the transmission would identify problems, and the monthly statement could also
indicate that there were problems. City Manager Noe added that one of the biggest advantages to
automated metering reading was that there would be a reduction in the number of estimated
readings.
Council Member Kinnison commented that it was not until Year 16 that the city would
recoup their investment in AMR. Mr. McDaniel responded affirmatively. Mr. Kinnison asked if
the city would have to make another major capital expense in Years 17 through 19. Mr. McDaniel
replied that a phased -in approach would be used to prevent purchasing a large amount of equipment
at the same time. Mr. Kinnison asked if these costs were going to be included in the city's rate
model and what the effect would be, Mr. McDaniel replied that if a new project was included in the
rate model, what usually happened was that other projects would be extended or sectioned off and
Minutes - Regular Council Meeting
August 26, 2003 - Page 22
phased -in instead.
Council Member Kelly asked if staff was proposing that the city proceed with both pilot
programs. Mr. Gericke replied negatively, saying that the RFP will help staff decide which one of
the technologies to use in the pi) t program. Mayor Neal asked what the cost of the RFP was
estimated to be. Mr. Gericke repl.ed that the cost would be approximately $110,000 on the high
side. Mayor Neal remarked that h would like to see the city move forward with this project, and
noted that he preferred the fixed ne work option. He asked Mr. McDaniel to look into the possibility
of using a portion of the large ca h balances in the utility funds to make cash payments on the
project to expedite implementatio .
The Council took a short recess.
* * * * * * * * * * * * *
The Council returned from recess, and Mayor Neal opened discussion on Item 35 regarding
the adoption of the Technical Conskruction Codes and the Development Services Fee schedule. Mr.
Art Sosa, Assistant Director of Development Services, said that the purpose of this item was to
prepare for the adoption of the unified development code. He said that staff was recommending that
all the ordinances and fees related to development services be moved into one place in the code.
Acting City Attorney Reining commented that staff hopes to eventually have everything related to
development services published in the Code of Ordinances rather than in separate books so they will
be readily available and readily referenced.
Mr. Sosa reviewed the key points of the Development Services Business Plan, which
included the following: strong building codes to promote quality development; international codes
are being used by other cities almost exclusively; improvements to the subdivision recordation
procedures; and this code adoptioth would make the city current for the first time in many years.
Regarding the Technical Cpnstruction Codes, Mr. Sosa briefed the Council on the following
changes to Chapter 1 - Administration. First, he stated that the house moving procedures were being
made more rigorous. Second, Mr. Sosa said that a provision regarding accessibility for commercial
buildings less than $50,000 in value would allow staff to monitor insurance accessibility for smaller
projects. Third, the provision regarding projects in the industrial district was clarified to eliminate
a number of ambiguities in the language. Finally, regarding windstorm inspections and
certifications, Mr. Sosa said that S,B. 14 allowed cities to take on the certification of windstorm for
single-family residential. Mayor Neal asked if the insurance commissioner had authorized the use
of municipal inspectors. Mr. Sosa replied negatively, but said that General Counsel had said that
it would be done. He said that staff would verify this.
Regarding the 2003 International Building Code changes, Mr. Sosa reported that the Texas
Department of Insurance amendments were pared down to two amendments. He also noted that the
ASCE 7-98 was adopted, regulating wind speeds. He said that the code also included new standards
on windborne debris, roofing standards, and foundation standards.
Regarding the 2003 International Residential Code for One and Two Family Dwellings, Mr.
Sosa remarked that this was the first time that the city had a code dedicated specifically to residential
Minutes - Regular Council Meeting
August 26, 2003 - Page 23
dwellings and town homes. He said that the Texas Department of Insurance amendments applied
to this code as well, namely - higher wind speeds, windborne debris, roofing standards, city
foundation standards and energy conservation standards.
Council Member Kelly asked for more information on foundation standards, asking if they
would better deal with the city's soil conditions. Mr. Sosa replied that the standards were basically
the same as before, but he said that staff would have an opportunity to revisit this standards in six
to eight weeks when they bring another item before the Council.
Regarding the International Plumbing Code, Mr. Sosa remarked that there were no
substantial changes from the 1997 Standard Plumbing Code. He also said that city amendments
would apply to this code. He said that the same applied to the 2003 International Mechanical Code
and the 2003 International Fuel Gas Code.
Mr. Sosa discussed the 2003 International Energy Conservation Code, a new code adoption
aimed to control energy consumption and performance. He stated that the code regulated insulation,
infiltration, mechanical equipment and duct work, light fixtures, windows, door and skylights. In
regards to the 2002 National Electrical Code, Mr. Sosa remarked that there were no substantial
changes from the 1999 National Electrical Code and that city amendments will apply.
Mr. Sosa explained that the following regulations currently found in different sections of the
code were being consolidated into one place: Flood Hazard Prevention Code; regulation of
excavation and fill materials; regulation of Solid Waste at construction sites; and regulation of Storm
Water Quality Management Plan. He noted that the only true change would be found in the Storm
Water Quality Management Plan, where a number of updated TCEQ requirements will be applied
to this code adoption.
Regarding the proposed fee adjustments for Development Services, Mr. Sosa explained that
all fees related to development services would be placed into one fee schedule. He said that to reach
the target revenue stream, staff had proposed a number of fees, including the following: technology
fee (2.5 percent of the Building Permit Fee); temporary promotional events (without food - $48; with
food - $148); zoning verification letter ($50); zoning - applicant tabling fee - ($50); accessibility -
$75 plan review, $75 inspection/certification; windstorm - inspection and certification - $300 a
premise; demolition - $0.017 per square foot; and commercial energy - plan review/inspection -
$0.05 per square foot.
In conclusion, Mr. Sosa stated that staff would be coming back to the Council with an item
requesting approval to engage a consultant to create the Unified Development Code. He added that
new state legislation was going to allow for state licensing of electrical contractors. He anticipated
that staff would need to change the electrical licensing procedures and bring them to the Council for
their review and approval.
Mayor Neal asked for public comment. Ms. Jeri Morey, 711 N. Carancahua, spoke in
support of the adoption of the 2003 International Building Code and other related international
codes.
Minutes - Regular Council Meeting
August 26, 2003 - Page 24
City Secretary Chapa polled the Council for their votes, and the following ordinances passed
on their first reading with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly,
Kinnison, Noyola and Scott, voting "Aye".
35.a. FIRST READING ORDINANCE
Amending the Code of Ordinances, City of Corpus Christi by redesignating Chapter 15,
Emergency Management, hs Chapter 16, Emergency Management and renumbering the
sections; and providing for penalties.
35.b. FIRST READING ORDINANCE
Amending the Code of Ordinances, City of Corpus Christi by redesignating Chapter 14,
Elections, as Chapter 15, Flections and renumbering the sections.
35.c. FIRST READING ORDINANCE
Amending the Code of Ordinances, City of Corpus Christi by designating Chapter 14 as
Development Services; adopting the 2003 International Building Code, Energy Conservation
Code, Fuel Gas Code, Mechanical Code, Plumbing Code and Residential Code for One and
Two -Family Dwellings as the City's Building, Energy Conservation, Fuel, Gas, Mechanical,
Plumbing and Residential Codes; adopting the 2002 National Electrical Code as the City's
Electrical Code; adopting the City's Flood Hazard Prevention Code; establishing provisions
relating to the regulations of excavation activities, fill materials, control of Aeolian soils and
solid waste at construction sites; amending the requirements for storm water management
plans; and establishing the Development Services' fee schedules and providing for penalties.
35.d. FIRST READING ORDINANCE
Amending Chapter 13, Code of Ordinances, City of Corpus Christi by repealing and
reserving Articles I, IV, V and VI and by renaming the title of the chapter to Chapter 13,
Code Enforcement, Housing and Housing Premises Standards and Neighborhood
Improvement and providing for penalties.
35.e. FIRST READING ORDINANCE
Amending Chapter 21, Code of Ordinances, City of Corpus Christi by repealing and
reserving Article VI and providing for penalties.
* * * * * * * * * * * * *
Mayor Neal called for petitions from the audience. Mr. Jack Gordy, 3117 Bray, spoke
regarding the homestead exemption for the Ocean House.
* * * * * * * * * * * * *
Minutes - Regular Council Meeting
August 26, 2003 - Page 25
Mayor Neal opened discussion on Item 36 regarding an additional payment to Collier,
Johnson & Woods P.C. for audit services. Mr. Mark McDaniel, Executive Director of Support
Services, prefaced his comments by saying that former Finance Director Lee Ann Dumbauld had
worked closely with Collier Johnson & Woods. Since she had recently Left the city's employment,
however, he would be discussinthis item to the best of his knowledge, with the assistance of
Acting Finance Director Constance Sanchez. He remarked that there was no question that the audit
took an enormous amount of hour, mostly unanticipated. He noted that the firm logged quite a few
hours in assisting staffwith the au it. He said that the audit was submitted late but more timely than
a number of other cities in Texas ad experienced. Mr. McDaniel said that this was the firm's first
GASB No. 34 audit and that the firm did complete some groundwork that staff normally would
undertake but could not due to turnover. Mr. McDaniel admitted that it was a large bill, much of
it logged by the senior partner of the firm due to the complexity of the task. He said that staff did
approach the firm to see if they could come to an agreement on what the bill ought to be, but the firm
declined to negotiate. Thus, Mr. McDaniel stated that staff was recommending that the city move
forward and pay the bill to resolve the matter.
Council Member Cooper asked Mr. McDaniel to explain the significance of the GASB No.
34 process. Mr. McDaniel replied that it was a complete overhaul of the way that financial reporting
was to be done by governmental entities. He said that the combining of financial statements had to
be completely reworked and new templates needed to be created. At the same time, Mr. McDaniel
stated that some of the Finance staff had not been through a closing before when the audit was
undertaken. He reiterated that there was no question that the firm had incurred a large number of
hours. However, Mr. McDaniel said that what was supposed to happen was that the city was to
receive notice that the firm was starting to incur hours over and above their base engagement letter.
He said that staff did not receive official notification in writing to his knowledge, but he had been
told that the firm had mentioned this to staff. Council Member Cooper asked if staff had been in
constant communication with the firm. Mr. McDaniel replied that he could not confirm this since
Ms. Dumbauld had departed, but he understood that staff had spoken with the firm daily. Council
Member Cooper remarked that it appeared that Collier Johnson & Woods had charged the city a
slightly reduced rate.
Ms. Cooper asked if staff was recommending approval. Mr. McDaniel replied that staff
wanted to move forward. He said that staff did attempt to settle with Collier Johnson & Woods for
a different amount before coming to Council, but the auditor declined. City Manager Noe added that
it was fair to say that staff did due diligence to determine that the hours that had been billed were
incurred and were legitimate. He said that staff was not necessarily comfortable with the amount
of notice that the firm had given them about the level of the bill before it was received. He did say
that there were was some missing information since Ms. Dumbauld had departed and due to the
extent of business that was done verbally. However, he said that due to the dollar amount of the bill,
he would have expected to receive notification in writing. He reiterated that the hours were
incurred, and thus staff was recommending that they be paid. Council Member Cooper agreed that
they should be paid.
Council Member Scott took exception to the fact that the firm had not notified the city in
writing about the large bill, since it constituted a more than 25 percent increase. He asked Mr.
McDaniel where it was written that the city was supposed to receive notice if the fees were to
increase. Mr. McDaniel replied that this statement was in the engagement letter. He noted that in
Minutes - Regular Council Meeting
August 26, 2003 - Page 26
the new engagement letter, staff had included a statement saying that the notification needed to be
in writing. Mr. Scott said that staff appeared to be complacent about the situation surrounding the
bill, and he felt that the firm should be made to take responsibility as well. City Manager Noe
replied that staff was not happy about the situation, but noted that the city had one more year left on
their basic agreement with Colli r Johnson & Woods. He emphasized that the staff had
documentation that the work was performed, but was not happy about the notice they had received.
Council Member Kinnison asked staff when they had received an invoice from Collier
Johnson and Woods. Ms. Constance Sanchez, Acting Director of Finance, replied that the firm had
sent four separate invoices, dated October 21, 2002 for $30,000, December 10, 2002 for $85,000,
February 11, 2003 for S42,000, and March 14, 2003 for $49,000. Mr. Kinnison noted that upon
receiving the February bill, the city was already paying $24,000 over the agreed upon amount of
$133,000. Then, a month later, he noted that the bill had increased to an additional $50,000 with
no previous written notification.
Mr. Kinnison took exceptign to staff's apparent complacency about paying the bill even
though they did not agree with it. Mr. McDaniel replied that staff had been haggling with the firm
about the bill since they received it March. Mr. Kinnison asked if an offer had been made to settle
the S49,000 bill. Mr. McDaniel answered affirmatively, saying that it was $157,000, the amount the
city had paid to date. City Manager Noe interjected that he had authorized Ms. Dumbauld to
negotiate with the firm, and he had been informed that the firm declined. Mr. Kinnison expressed
his concern that the two parties had not tried to work something out and that there was not better
communication between them.
Mr. John Shepherd with Collier, Johnson & Woods explained that the billing was exactly
in accordance with the engagement letter signed by then City Manager David Garcia on May 23,
2002. He said that the engagement letter estimated the fee for the engagement to be $123,000. He
said that what the firm actually billed for the audit engagement was $117,000. He emphasized that
the bill said in bold print that during the year of implementation of the new GASB 34 financial
reporting model , the city may require additional assistance in the CAFR preparation. He said that
the letter said that the fees for such assistance would be billed at the standard hourly rate, which he
said they were. Mr. Shepherd stated that he personally delivered the four bills to the Director of
Finance and had discussed them with her. He had not been questioned about them. In fact, Mr.
Shepherd said that he had been approached at one point by senior staff members to see if he could
accelerate his efforts to finish the CAFR more quickly. Mr. Shepherd was adamant that he had
followed the requirements of the engagement letter exactly as written and had reported to staff on
a regular basis.
Council Member Chesney spoke in support of paying Collier Johnson & Woods the
additional fees. A discussion ensued over whether the firm gave the city proper notice about the
magnitude of the charges incurred. Council Member Cooper reiterated her opinion that the firm
should be paid. Council Member Chesney asked how this situation could be prevented in the future.
City Manager Noe replied that staff would look more closely at the next engagement letter. Mr.
McDaniel added that he guaranteed that he would be more personally involved in the next coming
audit.
Council Member Kelly asked for a copy of the engagement letter. He asked what staff would
Minutes - Regular Council Meeting
August 26, 2003 - Page 27
have done differently if they had received more notice about the magnitude of the bill. Mr.
McDaniel replied that staff would have talked with the firm sooner about what needed to be done
from that point forward and what the cost would be. City Manager Noe added that staff would also
have come to the Council earlier, because by law the Council needed to be notified once the amount
had exceeded $25,000 of the apprpved amount.
In response to Council ember Kelly's question, Mr. Shepherd said that his firm was
required to provide notification if he bill for the audit was going to be higher than the agreed upon
amount of $123,000. He said th t the actual bill submitted was $117,000, so he had met that
requirement. The extra fees being discussed were not for services related to the audit; rather, he said
they were for services related to GASB 34. He reiterated that he had been asked to perform the
extra work for the implementation of GASB 34 by staff. Mr. Kelly replied that if that was the case,
then the bills should distinguish between charges incurred for audit services and charges incurred
for GASB 34 services. Mr. Shepherd replied that the final bill would note the distinction, but that
the four progress bills did not. Cif)/ Manager Noe said that if the distinction was not on the bills,
then staff would have no way of Knowing whether they were exceeding the amount for the audit.
Mr. Shepherd replied that he had communicated this information to the Director of Finance. Mr.
Kelly asked if all the work that the firm had performed was authorized by the Director of Finance.
Mr. Shepherd answered affirmatively.
Council Member Noyola a$ked if the Director of Finance had the authority to authorize the
additional work. City Manager Noe replied that part of the issue was that there was no written
documentation between the city and the firm about the additional work performed. He said that
department heads were given a certain level of discretion to authorize expenditures. He said that
anything above a certain level required his approval and the Council's approval. Mr. Noe stated that
the amounts in question today obviously exceeded a reasonable amount. Council Member Noyola
took exception to the Director of Finance's actions in this matter, but he agreed that the firm needed
to be paid since they had completed the work requested. He asked the City Manager, Mr. McDaniel
and Acting City Attorney Reining to ensure that this did not happen again.
Council Member Colmenero asked Mr. Shepherd to estimate the number of hours that the
firm spent working on the GASB 34 implementation. Mr. Shepherd replied that it 688 hours, and
they were billed at the standard hourly rate per the engagement letter.
Council Member Scott remarked that he was shocked by the increase in the bill. He
emphasized that all the parties involved needed to ensure that this would not happen again. He
asked Mr. Shepherd to provide written notification directly to the City Manager and if appropriate,
the Mayor, if a bill was to increase this significantly in the future. Council Member Kinnison
echoed Mr. Scott's sentiments. He added that he was disappointed that staff did not try harder to
negotiate with Mr. Shepherd on the bill.
There was no public comment. Mayor Neal asked City Secretary Chapa to pull the agenda
items that were referred to on May 21, 2002 that authorized the payments to Collier Johnson &
Woods for audit services and GASB 34. Mayor Neal commented that it was implied that staff
should be responsible for monitoring contracts and agreements, and he asked staff to do a better job
of doing this in the future. Mayor Neal thanked Mr. Shepherd and his firm for his efforts.
Minutes - Regular Council Meeting
August 26, 2003 - Page 28
City Secretary Chapa polled the Council for their votes, and the following motion passed
with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and
Scott, voting "Aye".
36. MOTION NO. 2003-297
Motion approving an addit
for audit services performe
onal payment of S49,000 to Collier, Johnson and Woods, P.C.
I for the fiscal year ended July 31, 2002.
Mayor Neal opened discussion on Item 37 regarding the Council Audit Committee's
recommendation for Convention a td Visitors Bureau funding. City Manager Noe reported that,
after meeting with staff, the commi tee was recommending that the status of the CVB remain intact.
He said that the committee was recpmmending that the city find opportunities to reduce their costs
by finding common services that the city could provide to reduce their operating costs. Mr.
Kinnison, Audit Committee Chairman, echoed City Manager Noe's response. He added that the
committee was also recommending that the city establish some standard reporting formats and
benchmarks on a quarterly basis to evaluate their performance. There was no public comment. City
Secretary Chapa polled the Council for their votes, and the following motion passed with the
following votes: Neal, Chesney, Cplmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting
"Aye"; Kelly was absent.
37. MOTION NO. 2003-298
Motion approving recommendations of the City Council Audit Committee regarding the
Corpus Christi Convention & Visitors Bureau funding.
Mayor Neal opened discussion on Item 38 regarding a contract with the One Med
Corporation to provide drug testing and other services. Ms. Cynthia Garcia, Director of Human
Resources, reported that staff had received three proposals for these services. She said that staff was
recommending One Med Corporation because they were the best value and the lowest bid. Mayor
Neal asked for public comment. Dr. Guy Racette, 3461 Ocean Drive, said that he was the Medical
Director in Corpus Christi for Concentra. He said that Concentra had been the contract holder for
controlled substances testing program for the city for the past eight years. He congratulated One
Med for winning the contract, saying that the RFP process that staff used had worked properly.
City Secretary Chapa polled the Council for their votes, and the following motion passed
with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and
Scott, voting "Aye".
38. MOTION NO. 2003-299
Motion authorizing a twelve-month contract with options to renew for up to three additional
twelve-month period between the City of Corpus Christi, Texas and One Med Corporation
to provide drug testing, laboratory, collection and Medical Review Officer services.
Mayor Neal opened discussion on Item 39 regarding a contract for occupational health
services with Concentra Medical Center. City Secretary Chapa noted that this item was being
Minutes - Regular Council Meeting
August 26, 2003 - Page 29
reconsidered as it was originally submitted on July 22, 2003. Ms. Cynthia Garcia, Director of
Human Resources, said that staff's original recommendation to award the contract to Concentra was
unchanged since it was the best value and the lowest bid.
Mayor Neal asked for publ' comment. Dr. Keith Rose, 3120 Ocean Drive, spoke in support
of awarding the contract to One Nled Corporation because he felt that it was the best value. He
contended that the company's ext5nded hours of operation and their availability made it a better
value because they saved the city the expense of emergency room care. Mr. Brian Trawick, Director
of H&S Constructors Inc., and Ms Margaret Gitaney, owner of Corpus Christi Produce Company,
spoke in support of One Med Corporation's occupational health services over Concentra's services.
Dr. Guy Racette with Concentra disputed the information contained in correspondence the Council
had received regarding his credentials and qualifications. He said that other false information had
been circulated in an effort to undermine his company's reputation. Hc said that Concentra stood
by the quality of their service and would provide documentation refuting the specific issues brought
up by the previous speakers. Final y, he spoke in support of the RFP process that staff used to make
their decision to award the contract to Concentra. He said he was glad his company had won the
award and he desired to continue to serve the city in this capacity.
Dr. Rose asserted his contention that Concentra had a troubling pattern of referrals for
physical therapy. He suggested that Concentra had a conflict of interest since they made referrals
for physical therapy and they also offered physical therapy services. Dr. Jane Deerberry, Vice -
President for Medical Affairs of the South region of Concentra, spoke in defense of Concentra's
integrity regarding physical therapy referrals. She said that Concentra deliberately avoided opening
weekends and extended hours because they found that it was impossible to find consistently good
occupational medicine physicians during those hours. She stated that Concentra did not offer urgent
care. She supported the RFP process that the city had used in making their choice. Mr. Richard
Manning, Regional Vice -President for Concentra Medical Centers, refuted Dr. Rose's claims
regarding after hour care, availability of physicians, physical therapy referrals, and Concentra's
efforts to get employees back to work expeditiously. Mr. Scott Humpal with CompCare, said that
his company had come in second in the bidding for this contract. He spoke in support of the city's
RFP process.
Council Member Chesney asked if extended hours of operation would result in savings for
the city since emergency room service would not be need used as often. City Manager Noe replied
that the majority of after hours cases involved Police and Fire due to the nature of the work. Ms.
Garcia replied that employees always had the option to see their own physicians, as they opted to
do the majority of time. Council Member Chesney asked if Concentra had a conflict of interest since
they made physical therapy referrals and offered physical therapy services. Ms. Garcia replied that
the third party administrator provided oversight on this matter, and no irregularities had been found
at this point. She said that staff was aware of the potential for abuse and practiced due diligence in
monitoring the pattern of referrals.
Council Member Garrett asked if staff looked at hours of operation and physician availability
during the evaluation process. Ms. Garcia replied affirmatively, saying that points were awarded
for their responses accordingly.
Council Member Scott asked why staff awarded Concentra 25 points for technical assistance.
Minutes - Regular Council Meeting
August 26, 2003 - Page 30
Ms. Garcia replied that the more specific the responses provided, the better the scoring. Mr. Scott
asked who was the biggest provider of physical therapy services for the city. Ms. Adria Schrieber-
Garza, Senior Analyst for Risk Management, replied that there was a wide range of entities that
employees went to for physical therapy. Mr. Scott asked Mr. Manning to provide the statistics he
had given in writing to him.
City Secretary Chapa polle the Council for their votes, and the following motion passed
with the following vote: Neal, C lmenero, Cooper, Kinnison, Noyola and Scott, voting "Aye";
Chesney and Garrett, voting "No"; Kelly was absent.
39. MOTION NO. 2003-300
Motion authorizing the CityiManager or his designee to execute a two-year contract with two
one-year renewal options between the City of Corpus Christi, Texas and Concentra Medical
Center to provide occupational health services.
Mayor Neal called for a br of recess. The Council returned from recess, and Mayor Neal
opened discussion on Item 40 regarding the Padre Island Desalination Facility. Assistant City
Manager Ron Massey introduced 14r. Jonathan Heckler with Carrollo Engineers, to provide a review
of the findings from Stage 1, Phase 1 of the study and the proposed contract amendment for the
follow-on work in Stage 2. Mr. H4ckler reported that the evaluation of existing water quality and
geotechnical data indicated the following: Reverse osmosis (RO) appeared to be a viable treatment
method for water from the Chicot Aquifer; Aquifer Storage and Recovery (ASR) could be utilized
to delay the need for a new water supply; ASR appeared feasible in either of two aquifers; no "fatal
flaws" had been identified in the permitting process; and in concert with ASR, improvements to
existing pump station would improve water supply and pressure issues.
Mr. Heckler stated that the assessment phase proposed a recommended project of 3.0-mgd
capacity, including the following components: Chicot Aquifer horizontal directionally -drilled well
field; 1.0-mgd RO facility (with buildings and infrastructure to support 5-mgd; 2.0-mgd ASR
capacity; by-product disposal via deep well injection; site work and transmission piping; upgrades
to existing Padre Island Pumping Station; and an estimated project cost of $23.2 million including
contingencies.
Mr. Heckler then discussedthe following outstanding issues that still needed to be studied:
verify hydrogeologic, geotechnical and water quality data and validate the process design - test well
program; how long can ASR delay a new water supply and what should be the ultimate
recommended capacity - population demand growth analysis; what is the optimum site for final
project and what are the specific regulatory implications - final siting evaluation.
Mr. Heckler reviewed the three key decision points for the project, taking place in January,
March and June of 2004. In January 2004, Mr. Heckler anticipated that decisions to proceed with
by-product disposal validation and ASR pre -design would need to be made. In March 2004,
decisions to proceed with design of recommended pump station improvements and to prepare the
RO pilot and protocol design would need to be made. Finally, in June 2004, a decision to proceed
with RO pilot studies would need to be made.
Minutes - Regular Council Meeting
August 26, 2003 - Page 31
Mr. Heckler referred to a list of items that would need immediate funding, totaling
$2,220,014. He also referred to a list of additional pre -negotiated near-term tasks, totaling
$1,775,392, that would be subject to authorization by the Director of Engineering Services pending
results of a test well program and Council decision regarding RO. In addition, he referred to a list
of tasks dependent of the Phase 2 outcome. Finally, Mr. Heckler referred to a pie chart breaking
down the Phase 2 costs, which totaled $4,038,102. He said that 25 percent of the costs would go
toward permitting, 28 percent would go toward validation studies and 30 percent would go toward
ASR costs.
Council Member Colmenefo asked if any land had to be acquired for this project. City
Engineer Angel Escobar replied that the proposed sites were either state parks, GLO land or city -
owned property that could be leased.
Mayor Neal asked for public comment. Ms. Carola Serrato, Chairperson of the Water
Resources Advisory Committee, presented a letter reviewed by the committee with their
recommendations, suggestions and concerns. Ms. Serrato stated that the committee's concerns
centered around the following issues. First, Ms. Serrato said that the water source being proposed
for desalination was not seawater but brackish water from the Chicot Aquifer. She said that this
contradicted the popular belief that desalination would provide a limitless supply of water from the
Gulf of Mexico. The committee also recommended that the city should consider all water resources
projects compared to the current cost of raw water resources. Finally, Ms. Serrato said that the
committee expressed concern that the island desalination project was not a regional project; thus,
they questioned which consumer categories should pay the substantially higher costs of desalination.
Assistant City Manager Massey replied that the study laid out by Mr. Heckler would
investigate many of the concerns raised by the committee. He said that the study would not address
how to charge the raw water costs but it did need to be reviewed. Finally, Mr. Massey said that the
study would not look at the effects of conservation.
Regarding tasks requiring immediate funding, Council Member Kinnison asked what the line
item for public involvement, priced at $110,000, involved. Mr. Heckler replied that they had
proposed a gamut of public information efforts, ranging from door hangers to attendance at meetings
and presentations. He noted that each activity would need to be approved before it was executed.
Mr. Kinnison asked if the city could not execute this function internally. Mr. Massey replied that
the city did have some capacity to execute this function, but said that he thought it was sometimes
preferable to have an outside group to coordinate the effort. Mr. Kevin Stowers, Assistant Director
of Engineering, added that staff had deliberately placed the need for a consultant at meetings and
presentations on a not -to -exceed fee basis, with specific rates for those services. Mr. Stowers said
that this was a reduced amount from what was originally proposed. He said that staff felt the
number would be probably come in under budget since the city would use their resources as well.
Council Member Scott asked Ms. Serrato if the letter reflected the views of the entire
committee. Ms. Serrato replied that the members had discussed and voted on the points that they
wanted raised at a committee meeting and had asked her to write the letter on their behalf. She said
that she had e-mailed the members a copy of the final letter for their review and comments. She
noted that the industrial and wholesale water representatives were especially concerned that
desalination was being recommended at the expense of other more reliable, less expensive water
Minutes - Regular Council Meeting
August 26, 2003 - Page 32
sources. They were also concerned about how the costs of desalination were going to be passed on
to the consumer in a fair way if it was not a regional project.
Council Member Kelly asked how much money the city would have to spend to obtain the
necessary information to make a dfcision on whether to proceed with a pipeline or a desalination
plant for the island. Mr. Massey replied that Mr. Heckler had referred to a list of items requiring
immediate funding in his presentation, totaling $2,220,014 which would provide much of that
information. Mr. Kelly asked why the city did not proceed with what would certainly be the least
expensive alternative, a larger pipet ne. Mr. Heckler replied that to know the details on what the true
costs would be, the recommended steps would need to be taken. He said that the supply vs. demand
issue would be hard to determine Without additional data.
Mr. Kelly asked why it was necessary to go through with the additional study for a
desalination plant if we knew that a pipeline would need to be built as well in the short run. He
asked why a larger line was not si ply constructed. Assistant City Manager Massey replied that
this was an alternative. Council Member Kinnison echoed Mr. Kelly's sentiments, saying that staff
knew that the pipeline would provide less costly water than reverse osmosis or ASR now. Mr.
Massey replied that staff wanted to provide the Council with the accurate data needed to make an
informed decision. Mr. Stowers added that most of the contract costs related to the pumping plant,
the ASR, and population and demand studies that needed to be done would benefit not only the
island but the entire city distribution and water storage system. He said that most expensive costs
associated with the decision to go with an RO plant were placed after the validation studies were
complete.
Mayor Neal commented that he had been asked why the city did not continue with plans for
the Garwood Pipeline instead of the more costly desalination process. He said that Garwood was
still a valid option, but at the same time, the city had been under pressure from the community to
proceed with desalination or say why it could not be done. To answer this question once and for all,
Mayor Neal said that in his opinion, the Council would need to move forward with the study to see
if the city had a viable desalination project. If the answer was no, then Mayor Neal said that the
Council could put this issue to rest and move on with the other alternatives because they had
addressed this question. Council Member Kinnison expressed his concern that even if the city did
spend over $2 million for this study and obtained the answer to the desalination question and the
answer was no, some members of the community would still not be convinced. Mr. Massey
commented that the data obtained from this study could be applied to other capital projects by
providing better estimates.
City Secretary Chapa polled the Council for their votes, and the following motion passed with the
following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott,
voting "Aye".
40. MOTION NO. 2003-301
Motion authorizing the City Manager or his designee to execute Amendment No. 2 to the
engineering services contract with Carollo Engineers, P.C., of Phoenix, Arizona in an
amount not to exceed $4,038,193 for the Padre Island Desalination Facility.
Mayor Neal opened discussion on Item 41 regarding the Seawall Reconstruction Project.
Minutes - Regular Council Meeting
August 26, 2003 - Page 33
Mayor Neal asked for public comment. Mr. Bill Kopecky, 3609 Topeka, asserted his contention that
the Seawall Reconstruction Project would address the deteriorating condition of the marina,
eliminating the need for the Landry's project. Mr. Jeff Massengill with Shiner Moseley and
Associates provided the Council with a status on the Seawall Project. Mr. Massengill said that the
$45 million project had been brok n up into several different contracts. First, he provided a status
on what had been completed to dat�. The pilot project B-1 covered the first 1500 feet of the seawall
and the area near the Art Museum Of South Texas. The second contract, B -2(A) covered repairs to
the T -heads that were not repaired in a prior bond election. The third contract, B -2(B), will start
at the Power Street outfall southvyard to the People Street T -heads. Contract C, also called the
marina reach, started at People Street southward to the marina breakwater entrance. Finally,
Contract D was 1500 feet along the McGcc Beach area.
Mr. Massengill reported t at contract B-1 was 65 percent complete. He pointed out that
several ADA features had been innluded, such as more accessible slopes and strategically placed
parking spaces. He said that they a so had installed better lighting fixtures. Mr. Massengill said that
contract B-1 was going to be completed at the end of this year. He said that contract B -2(B) was
under design now but would be out for bid this fall, and under construction around the first of next
year. Contract B -2(A) was on the agenda today and, if approved, would start around September 15
and be completed around June 15 of next year. Regarding contract C, he said that plan was to begin
construction about June 2004 and t should last approximately 24 months. He said that traffic and
pedestrian control were challenging, but the goal was to complete the projects with the least amount
of inconvenience. He said that contract D along McGee Beach was scheduled for construction
around the third quarter of 2005 and end in 2006.
Mr. Massengill reported that the pilot project was beneficial and progressing well. He said
that they were $1.5 million under budget at this time, but cautioned against spending this money
until the other contracts were awarded. He said that marine work was market dependent, and the
depressed market was working in our favor now.
Mayor Neal asked Mr. Angel Escobar, City Engineer, what the scope of the B -2(A) project
was. Mr. Escobar replied that it included the bulkhead work along the Lawrence T -Head and the
Coopers Alley L -Head, completing the work that was begun in 1991. He said that the work would
complete new sidewalks and ADA work around the area as well as drive in a new sheet piling in
front of the area.
Mr. Garrett asked if there were any plans to do ADA work from the sidewalk to boardwalk
on the T -Head. Mr. Escobar replied that there would be ADA accessible ramps at the intersections
on the sidewalks and across the streets. Regarding the T -heads and the L -heads, they would also
be ADA accessible. To get from Shoreline Drive down to the stem, Mr. Escobar said that no ADA
work was planned. Mr. Garrett asked if staff could look into addressing this. Mr. Escobar said that
he would look at the cost and viability of doing this work.
Minutes - Regular Council Meeting
August 26, 2003 - Page 34
City Secretary Chapa polled the Council for their votes, and the following motions passed
with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and
Scott, voting "Aye".
41.a. MOTION NO. 2003-302
Motion authorizing the Cit Manager or his designee to execute a construction contract with
Laughlin Environmental, Ii c. of Houston, Texas in the amount of $4,219,200 for the Seawall
Reconstruction Project Co tract B-2, Part A, Lawrence Street T -Head and Coopers Alley
L -Head Repairs.
41.b. MOTION NO. 2003-303
Motion authorizing the Ci y Manager or his designee to execute an engineering materials
testing and inspection cont act with Fugro South, Inc. of Corpus Christi, Texas in an amount
not to exceed $37,240 for the Seawall Reconstruction Project Contract B-2, Part A,
Lawrence Street T -Head acid Coopers Alley L-Hcad Repairs.
41.c. MOTION NO. 2003-304
Motion authorizing the City Manager or his designee to execute Amendment No. 14 to the
engineering services contract with Shiner Moseley and Associates, Inc. of Corpus Christi,
Texas in an amount not to exceed $1,950,000 for design of Seawall Contract C (Marina
Reach) and post construction underwater survey services for Contract B-2.
Mayor Neal opened discussion on Item 43 regarding the drainage improvements for the
Sunnybrook/Evelyn/Gollihar/Kostoryz area. There was no public comment. Council Member
Noyola asked Mr. Escobar to briefly explain the work that was going to be done in this area. Mr.
Escobar said that this work would add new sidewalks, new driveways, and new water lines and
sewer lines. He also said that it would add a 5 ft. by 5 ft. box underground to provide better
drainage. He emphasized that it would not add curb and gutter to the Sunnybrook area, but it would
improve the drainage. He said that the work would improve drainage issues along Manshiem and
Ayers. He said that there five phases of work planned for this area, this item constituting the first
phase.
City Secretary Chapa declared an emergency, and polled the Council for their votes. The
following items passed with the following votes: Neal, Chesney, Colmenero, Cooper, Garrett,
Kelly, Kinnison, Noyola and Scott, voting "Aye".
43.a. ORDINANCE NO. 025458
Ordinance appropriating $182,667.76 in unappropriated interest earnings from Water 1994
Capital Improvement Program Fund 4082 and appropriating in Water Capital Improvement
Program Fund 4082 for Sunnybrook/Evelyn/Gollihar/Kostoryz Area Street and Drainage
Improvements Phase 1 and Mansheim Area Drainage Improvements Phase 1A; amending
FY 2002-2003 Capital Budget adopted by Ordinance No. 025144 to increase appropriations
by $182,667.76.
Minutes - Regular Council Meeting
August 26, 2003 - Page 35
43.b. MOTION NO. 2003-305
Motion authorizing the Ci Manager or his designee to award a construction contract to
W.T. Young Construction 4f Corpus Christi, Texas in the amount of $1,534,163.65 for the
Sunnybrook/Evelyn/Gollihhr/Kostoryz Area Street and Drainage Improvements Phase 1 and
Mansheim Area Drainage Improvements Phase 1A.
Council Member Chesney ommented that he had heard many people express their lack of
knowledge on the issue of the Mat 'cula Consular cards passed by the Council last week. He made
a motion to reconsider Resolutio No. 025432 approved on August 19, 2003 recognizing the
Matricula Consular card as a form of photographic identification. The motion died for lack of a
second.
*************
Mayor Neal called for the City Manager's report. City Manager Noe reported that the
ribbon -cutting ceremony and re -opening of McGee Beach would be held on Thursday. He also said
the September 9 meeting would begin at 11:00 a.m. and that the Landry's public hearing was
scheduled that day.
Mayor Neal announced that a public hearing on Landry's would be held at Luther Jones
Elementary tomorrow night at 6:00 p.m., and another meeting would be held on Thursday night at
the Pharaoh Country Club.
Mayor Neal called for Council concerns and reports. Council Member Kinnison spoke
regarding the Matricula Consular issue, saying that he felt it was extremely important that staff make
every effort to correctly inform the public. He said that a tremendous amount of misinformation was
being disseminated to the public which needed to be addressed. Council Member Cooper also spoke
in favor of the Matricula Consular cards, and felt that they would not hinder the effort against
terrorism. She announced that the next Town Hall meeting would be held on Monday, September
8 at Yeager Elementary School, hosted by Council Member Noyola.
Council Member Scott also asked staff to work on informing the public about the actual uses
of the Matricula Consular cards. He referred to a letter the Council had received from the FBI
stating that they were not opposed to the cards at this time, but would welcome more dialogue with
the Mexican government on the matter. He also invited everyone to attend the next public hearing
on Landry's at the Pharaoh Country Club.
Council Member Kelly also spoke regarding the Matricula Consular card, advising staff to
exercise extreme caution and sensitivity when dealing with this subject because it was racially
charged. Council Member Colmenero also asked staff to convey the true facts about the Matricula
Consular cards to the public. He also asked staff if they could look into including the
Wienerschnitzel along the Bayfront in the seawall improvement projects.
Council Member Noyola also spoke regarding the Matricula Consular card. He resented the
suggestion being made that the Council was trying to slip this item past the public. He said that he
was upset that a certain radio station was the primary source of the misinformation about the cards.
He felt that the opposition to the card was a sign of discrimination. He supported the card and asked
Minutes - Regular Council Meeting
August 26, 2003 - Page 36
staff to work on correcting the misinformation.
There being no further business to come before the Council, Mayor Neal adjourned the
Council meeting at 9:35 p.m. on August 26, 2003.
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