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HomeMy WebLinkAboutMinutes City Council - 03/02/2004I 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 March 2, 2004, which were approved by the City Council on March 23, 2004. WITNESSETH MY HAND AND SEAL, this the 23rd day of March 2004. Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting March 2, 2004 - 9:02 a.m. PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Mark Scott Council Members: Javier D. Colmenero (Arrived at 9:13 a.m.) Melody Cooper Henry Garrett Bill Kelly Rex A. Kinnison Jesse Noyola ABSENT Brent Chesney City Staff: City Manager George K. Noe City Attorney Mary Kay Fischer City Secretary Armando Chapa Mayor Neal called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Mr. George Pledger of Weber Road Church of Christ and the Pledge of Allegiance to the United States flag was led by Council Member Cooper. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. He noted that Mr. Chesney was absent today due to a death in the family. Mayor Neal called for approval of the minutes of the regular Council meeting of February 24, 2004. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * * * * Mayor Neal referred to Item 2 and the following board appointments were made: Building Standards Board Ike Spiker (Reappointed) Rudy Garza (Reappointed) Community Youth Development (78415) Program Steering Committee Ellie Cardona (Appointed) Corpus Christi Area Convention and Visitors Bureau Sandi McNorton (Appointed) Landmark Commission Myron Grossman (Reappointed) David Doyle Brown (Appointed) Herb G. Morrison III (Appointed) Julia Nguyen (Appointed) Craig Thompson (Appointed) David Wallace (Appointed) Jim Bright (Appointed) Minutes - Regular Council Meeting March 2, 2004 - Page 2 * * * * * * * * * * * * * As an aside, Mayor Neal noted that today was Texas Independence Day. Mayor Neal called for consideration of the consent agenda (Items 3-20). Council members requested that Items 3 and 18 be discussed. City Secretary Chapa announced that Item 11 needed to be amended. There were no comments from the audience. A motion was made and passed to approve Items 3 through 20, constituting the consent agenda, except for Items 3, 11, and 18, which were pulled for individual consideration. City Secretary Chapa polled the Council for their votes as follows: 4. MOTION NO. 2004-072 Motion approving a supply agreement for Police Uniforms, including 450 pairs of trousers, 525 shirts, and 40 jackets, in accordance with Bid Invitation No. BI -0073-03 with Unifirst, of Corpus Christi, Texas, based on low bid meeting specification for an estimated annual expenditure of $63,711.25. The term of the contract will be twelve months with option to extend for up to two additional twelve-month periods, subject to the approval of the supplier and the City Manager or his designee. Funds have been budgeted by the Police Department in FY 2003-2004. The foregoing motion was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. 5. MOTION NO. 2004-073 Motion approving a supply agreement with the following companies for the following amounts for approximately 7,087 pipe repair clamps ranging in size from 2" to 30" in accordance with Bid Invitation No. BI -0053-04 based on low bid for an estimated annual expenditure of $216,104.59. The term of the contract is for twelve months with options to extend for up to two additional twelve-month periods, subject to the approval of the contractor and the City Manager or his designee. These items are purchased into Warehouse Inventory and charged out to the Water and Wastewater Departments. Hughes Supply San Antonio, Texas Group 1 $163,119.10 Ferguson Enterprises Corpus Christi, Texas Group 2 $8,182.89 Grand Total: $216,104.59 Titan Pipe & Supply Corpus Christi, Texas Group 3 $44,802.60 The foregoing motion was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. Minutes - Regular Council Meeting March 2, 2004 - Page 3 6.a. ORDINANCE NO. 025663 Ordinance appropriating $49,940 from the unappropriated fund balance of the No. 3160 City Hall Capital Improvement Program Fund; transferring to and appropriating in Public Health and Safety Capital Improvement Program Fund No. 3350 for Fire Station No. 7 Moisture Control Repairs and Modifications; and amending Ordinance No. 025647 which adopted the FY 2003-2004 Capital Budget by increasing appropriations by $98,880. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. 6.b. MOTION NO. 2004-074 Motion authorizing the City Manager or his designee to execute a construction contract with Sal -Con, Inc., of Corpus Christi, Texas in the amount of $49,940 for Fire Station No. 7 Moisture Control Repairs and Modifications. The foregoing motion was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. 7. MOTION NO. 2004-075 Motion authorizing the City Manager or his designee to execute Change Order No. 1 to the Seawall Reconstruction Project Contract B -2B with Gunther Nash, Inc., of St. Louis, Missouri in the amount of $351,256 for the McGee Beach Sand Renourishment Project. The foregoing motion was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. 8. MOTION NO. 2004-076 Motion authorizing the City Manager or his designee to execute Amendment No. 2 to a Contract for Professional Services with ECMS, Inc., of Corpus Christi, Texas in the amount of $60,000 for Spur 3, Phase 2: Ennis Joslin - Ocean Drive/Alameda to South Padre Island Drive Street Reconstruction Project for additional Construction Management and Inspection Services. The foregoing motion was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. Minutes - Regular Council Meeting March 2, 2004 - Page 4 9. MOTION NO. 2004-077 Motion authorizing the City Manager or his designee to execute Amendment No. 3 for Construction Management Services with Anderson Group construction Management, Inc., of Corpus Christi, Texas in the amount of $688,840 for various Capital Improvement Projects associated with the 2004 Capital Budget. The foregoing motion was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. 10. MOTION NO. 2004-078 Motion approving the application from the Corpus Christi Chamber of Commerce to temporarily close the following street sections for the S.E.A. Mixer Event, March 4, 2004: A. Inside travel lane ofNorthbound Shoreline Boulevard from Power Street to Palo Alto Street, exclusive of the median crossovers at Power Street and Palo Alto Street, beginning at 6:00 a.m., Thursday, March 4, 2004 through 12:00 midnight, March 4, 2004. B. Southbound Shoreline Boulevard from Power Street to Palo Alto Street, exclusive of the median crossovers at Power Street and Palo Alto Street, beginning at 6:00 a.m., Thursday, March 4, 2004 through 12:00 midnight, March 4, 2004. The foregoing motion was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. 12. MOTION NO. 2004-080 Motion authorizing the City Manager or his designee to execute Amendment No. 2 with J. R. Thompson, P.E., of Corpus Christi, Texas for a total fee not to exceed $35,850 for Club Estates Channel Improvements, Phase 1. The foregoing motion was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. Minutes - Regular Council Meeting March 2, 2004 - Page 5 13. MOTION NO. 2004-081 Motion authorizing the City Manager or his designee to execute a Real Estate Sales Contract with Melesio G. Rivera and wife, Ygnacia Reyes Rivera in the amount of $43,000 plus $1,500 in closing costs and an additional amount not to exceed $22,500 for relocation assistance in connection with a replacement dwelling, all for the purchase of fee simple property rights for Parcel 8, being all of Lots 3 and 4, Block 4, H.E. Luter Partition, with street address of 2016 Marguerite Street, necessary for the Garcia Arts Center Area Street Improvements, Phase 2. The foregoing motion was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. 14. MOTION NO. 2004-082 Motion authorizing the City Manager or his designee to execute a contract with Leonard Scott, of Sandia, Texas to provide consulting services and serve as Project Manager for the Automated Meter Reading (AMR) and Wireless Fidelity (WiFi) Project at the rate of $37.11 per hour. The contract shall commence March 6, 2004 and extend through March 6, 2006 and may be continued for two more years. The foregoing motion was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. 15.a. MOTION NO. 2004-083 Motion authorizing the City Manager or his designee to approve a Renewal for Standard Maintenance with PeopleSoft USA, Inc., of Pleasanton, California in the amount of $252,032.16 for twelve (12) months' PeopleSoft software maintenance for Asset Management, Accounts Payable, Benefits Administration, Budgeting, General Ledger, Human Resources, Inventory, Projects, Purchasing, Payroll, Time and Labor Public Sector software based on sole source. The foregoing motion was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. Minutes - Regular Council Meeting March 2, 2004 - Page 6 15.b. MOTION NO. 2004-084 Motion authorizing the City Manager or his designee to approve a Renewal for Standard Maintenance with PeopleSoft USA, Inc., of Pleasanton, California in the amount of $38,740 for twelve (12) months' PeopleSoft software maintenance for eDevelopment, eCompensation, eBenefits, eProfile, eRecruit, and ePay software based on sole source. The foregoing motion was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. 16. RESOLUTION NO. 025664 Resolution authorizing the City Manager or his designee to execute an Interlocal Cooperation Agreement with Texas A & M University - Corpus Christi to participate and oversee quality checking, data collection, and data processing of the City's cadastral base maps. The foregoing resolution was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. 17. RESOLUTION NO. 025665 Resolution authorizing the City Manager or his designee to submit a State Energy Program Grant Application to the Texas State Energy Conservation Office in the amount of $150,000 for a Compressed Natural Gas Fueling Facility at the Maintenance Service Center, with a City match of $258,500 out of the Gas Commercial Paper Fund No. 4550, for a total project costs of $408,500. The foregoing resolution was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. 19. ORDINANCE NO. 025666 Amending Article 1, Chapter 38, Code of Ordinances, relating to Parade Vendor Permits; and providing for penalties. (First Reading 02/24/04) The foregoing ordinance was passed and approved on its second reading with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. Minutes - Regular Council Meeting March 2, 2004 - Page 7 20. MOTION NO. 2004-085 Motion authorizing the City Manager or his designee to execute a Parade Vending Agreement with the Buccaneer Commission, Inc. The foregoing motion was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. Mayor opened discussion on Item 3 regarding the purchase of sedans for the Police Department. Mr. Garrett complimented the Police Department's fleet management for providing the officers with safe vehicles. 3. MOTION NO. 2004-071 Motion approving the purchase of 33 police package sedans in accordance with Bid Invitation No. BI -0030-04 with Champion Ford, of Corpus Christi, Texas based on low bid for a total of $703,296. All units are replacements. Funding is available from the FY 2003- 2004 Capital Outlay Fund. The foregoing motion was passed and approved with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. Mayor Neal opened discussion on Item 11 regarding streetlight installation for Spur 3 between South Padre Island Drive and Nile. City Secretary Chapa stated that staff was requesting that this item be amended by removing the phrase "Central Power and Light". A motion was made, seconded and passed to amend the item as stated by Mr. Chapa. City Secretary Chapa polled the Council for their votes as follows: 11. MOTION NO. 2004-079 Motion authorizing the City Manager or his designee to have American Electric Power (AEP), at an aid -to -construction cost of $63,300, proceed with installation of streetlights for Spur 3 between South Padre Island Drive and Nile. The foregoing motion was passed and approved as amended with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. Mayor Neal opened discussion on Item 18 regarding proposed city code amendments defining the city's role in Public Access Cablecasting. Mr. Kelly expressed his concern that the proposed amendments would make the city more involved in the management of the Public Access station rather than less involved, which was the original objective. City Manager Noe responded that the amendments solely represented technical changes to the ordinance reflecting changes in the city's relationship with Time Warner. He said, for example, that when the city first created the ordinance related to the public access channel, the city had entered into a contract with Time Warner Minutes - Regular Council Meeting March 2, 2004 - Page 8 to provide a studio. Now that Time Warner was no longer offering this service, however, an amendment was being proposed to reflect this change in the ordinance. He stressed that the city was not changing their relationship with Time Warner; rather, they were updating the ordinance by eliminating provisions that no longer applied. 18.a. FIRST READING ORDINANCE Amending the Code of Ordinances, City of Corpus Christi, Chapter 2 regarding the Cable Communications Commission. The foregoing ordinance was passed and approved on its first reading with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. 18.b. FIRST READING ORDINANCE Amending the Code of Ordinances, City of Corpus Christi, Chapter 55, regarding Rules and Procedures for Public Access Cablecasting; and providing for penalties. The foregoing ordinance was passed and approved on its first reading with the following vote: Neal, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney and Colmenero were absent. * * * * * * * * * * * * * Mayor Neal referred to Item 21, and a motion was made, seconded and passed to open the public hearing regarding the South Texas region's rate case with American Electric Power (AEP) Texas Central Company. Mr. Geoffrey Gay, an attorney with the law firm of Lloyd, Gosselink, Blevins, Rochelle, Baldwin & Townsend of Austin, TX, provided a brief history on the rate case to date. He reported on the results of his team's detailed analysis of AEP Texas Central Company's proposed rate increases. He stated that AEP appeared to be over charging the region for electrical power, especially for street lighting. Mr. Gay recommended that the City of Corpus Christi adopt the electric rate ordinance included in the Council's packet which lowered AEP's transmission and distribution (T&D) rates by $97 million or 21 percent. He said similar rate ordinances are being considered and adopted by the other cities in the region participating in the lawsuit. He said the case had started trial this week at the Public Utility Commission in Austin. In conclusion, Mr. Gay stated that the city should enact the ordinance to make a statement that the rates should be reduced. There were no comments from the audience. A motion was made, seconded and passed to close the public hearing on this item. City Secretary Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting March 2, 2004 - Page 9 21. ORDINANCE NO. 025667 An Ordinance of the City of Corpus Christi, Texas finding, after reasonable notice and hearing, that American Electric Power Texas Central Company's electric transmission and distribution rates and charges within the City should be changed; determining just and reasonable rates; adjusting street lighting charges; adopting recommendations of consultants; providing for recovery of rate case expenses; preserving regulatory rights of the City; and providing for repeal of conflicting ordinance. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Neal, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Chesney was absent. Mayor Neal referred to Item 22a, and a motion was made, seconded and passed to open the public hearing on the following item: 22.a. Public hearing on request for a variance to operate an establishment with on -premise consumption of alcoholic beverages at an establishment known as Guerrero's Place located at 706 S. Port Avenue. Mr. Michael Gunning, Assistant Director of Development Services, explained that state law prohibits bars, taverns and night clubs from locating within 300 feet of churches, daycare centers, hospitals or schools unless the City Council grants a variance. Mr. Gunning stated that the city had recently implemented a new process on the granting of variances, and this was the first case to use the process. Under the new procedure, a public notice must be published in the newspaper ten (10) days before the hearing and notices mailed to all property owners within 300 feet of the subject property. He said the Council may allow a variance to the regulation based on a number of considerations if it determines it is in the best interest of the community. Mr. Gunning reported that Ms. Margaret Rios had asked for a variance on behalf of the owner, Mr. Jose Champion, who is her grandson and resides out of state. He said the variance would allow the intended lessee, Mr. Jesse Guerrero, to obtain a liquor license for on -premise consumption of alcoholic beverages. Ms. Rios explained in her letter that she had operated the business for the last 48 years. She also wrote that she had retired their license and was leasing the property to Mr. Jesse Guerrero, whose name was on the TABC application. In 1998, the Iglesia de Dios church opened approximately 100 feet south of the subject property. In 1995, the Council granted a Special Permit for a child care center (Los Pequerfos Day Care Center) approximately 240 feet west of the subject property. Mr. Gunning provided a police incident report covering the five-month period between January 1, 2003 and May 3, 2003. During that time, there were a total of 58 calls for police service at 706 S. Port. He said the bar had been closed since June 2003 when the license expired. Mr. Gunning also reported that the 700 block of S. Port had been associated with bars, drugs, prostitutes, and frequent violent encounters for many years. He concluded that the Police Department and staff recommended the denial of the variance. Mr. Kelly commented that as the Council member representing this area, he has received Minutes - Regular Council Meeting March 2, 2004 - Page 10 many complaints about prostitutes operating in front of the daycare and drunks disturbing the peace. He said the neighborhoods had indeed been adversely affected by the operations of these bars. Thus, he said he strongly concurred with staff's recommendation. There were no comments from the audience. A motion was made, seconded and passed to close the public hearing. City Secretary Chapa polled the Council for their votes as follows: 22.b. FAILED Rcsulut o i g . tuft wcnuc. the COC;d. ut Uidmauwo, to to opon-pieiLisc al‘suhul.c cveiage L,stahhshnucnt lucatLd a The foregoing resolution failed by the following vote: Neal, Garrett, Kelly, Kinnison, Noyola and Scott, voting "No"; Cooper voting "Aye"; Chesney and Colmenero were absent. * * * * * * * * * * * * * Mayor Neal referred to the presentations on the day's agenda. The first presentation was a report on advancements in technology provided by Mr. Ogilvie Gericke, Director of Municipal Information Services. Mr. Gericke prefaced his report by stating that the city had made significant changes in the past year in the way it organized and delivered technology. He explained the key factors influencing technology decisions. He said that from an operational standpoint, technology improved the effectiveness and efficiency of the organization through business process improvements, real time transactional reporting and key operating indicators. Technology also improved the productivity of employees through hiring, training and reward. Finally, Mr. Gericke said technology increased customer satisfaction by allowing the city to adhere to quality service level standards and the implementation of eService. Mr. Gericke reviewed the current elements of the technology system: the user, software, and hardware, all joined by connectivity. He listed the types of software, including applications, databases, and operating systems. He said types of hardware included desktop personal computers, hand-held devices, servers, and disk storage and SAN. Finally, he said connectivity transmitted data between devices, like fiber cable, WiFi, modems and T-1 lines. Mr. Gericke said one of the major changes implemented recently was the centralization of IT planning and direction under the IT Steering Committee, headed by the City Manager, the Assistant City Managers, and department heads of relevant departments. He said the committee oversees plans and multi-year strategies, identifies funding, makes recommendations on organizing for deployment, and supports technical standards. Mr. Gericke said another change was that IT delivery of service was centralized under the MIS department. Previously, he said there were separate branches of Information and Technology support services in the Police department, Municipal Court and the Health department. He said the IT Steering Committee determined that it was preferable to centralize these services in the MIS department to eliminate duplication. He said the change resulted in better project management, Minutes - Regular Council Meeting March 2, 2004 - Page 11 better resource sharing, and standardization of hardware and software. He said the change also resulted in better desk -side support. Mr. Gericke briefly reviewed the Information and Technology Budget for FY 2003-04, totaling $9.3 million. He said the cost of technology was comprised of the purchase, implementation, training, and operations and maintenance of the technology. He noted that the operation and maintenance of the technology was comprised of ongoing costs and vendor -directed upgrades. Mr. Gericke discussed the advances in technology in a number of departments. In the Public Safety department, he noted that the city had spent $412,356 to purchase mobile data computers. He also noted that the city has begun the process to replace the computer-aided dispatch and record management system. Regarding the utilities sections, Mr. Gericke reported that the Water department has implemented a monitoring program for water production and supply using the SCADA system, at a cost of $119,268. Mr. Gericke reported that technology was an important part of the city's re-engineering effort. He said the city's work management system was being coordinated using the MAXIMO system, as part of the Re-engineering Phase 3 roll-out, at a cost of $520,224. He said the Geographic Information System (GIS) was integrated with the work management system at a cost of $673,344. Mr. Gericke reported that MIS also supported the Utility Billing, Building Inspections, Code Enforcement, and Planning (H.T.E.) sections by providing improved access to services through Web enabling at a cost of $927,792. In Municipal Court, Mr. Gericke reported that MIS had consolidated operations with the Police department and replaced old servers and PCs at a cost of $408,744. Mr. Gericke reported that the city's most expensive software is the PeopleSoft system used for financials and human resources. He said MIS has budgeted $1,355,112 to upgrade both applications, and to provide pilots for skill -based pay and eRecruit. Mr. Gericke also said MIS has budgeted $1,183,320 for user support and training, and for consolidating support at the Police department and Municipal Court. Mr. Gericke stated that MIS has budgeted $1,815,408 for improvements to connectivity and telephone services. He said the funds were being used to improve network speed and capacity, to consolidate disk storage at both the Police department, Municipal Court, and City Hall to a Storage Area Network (SAN), and to improve telephone service to the Health department, libraries and Museum. Mr. Gericke reported that MIS had budgeted $436,000 to implement online payments and communications for the E -Government department. MIS also budgeted $268,000 for the activation of the Call Center, scheduled for launch on June 1, 2004. He said $1.1 million was budgeted for the planning and pilot stage of the automated meter reading and WiFi systems. Finally, Mr. Gericke said $66,000 was budgeted for maintenance of the Library's DYNIX system to replace the old automated card catalog and tracking system. Minutes - Regular Council Meeting March 2, 2004 - Page 12 Mr. Gericke concluded his presentation by briefly discussing the proposed Technology Investment "Three -Year Plan," including the following areas and/or departments: arena; public safety CAD/RMS replacement; PeopleSoft upgrades and enhancements; online building permits; Call Center; AMR / WiFi; CMMS upgrade (Maximo); and imaging. Mr. Gericke said the plan was in progress now, and would be brought to the Council for their consideration at a later date. Mayor Neal asked if the city had hired any outside consultants to assist with long-range technology planning. City Manager Noe replied that the city was not using outside expertise for its general technology planning. He said the IT Steering Committee was charged with the city's technology planning because, with the exception of the three-year plan initiatives, most of the city's technology initiatives were designed to maintain the city's current technology. He emphasized that the city needed to focus on maximizing the use of its current technology by providing funding for staff training. Mayor Neal expressed his concern that the city stay abreast of advances in technology that will help the city operate more efficiently and more cost effectively, especially in terms of staffing. City Manager Noe replied that the city recently used technology in this way through the implementation of the SCADA and MAXIMO programs, significantly reducing the staffing needs at the wastewater treatment plants. Council Member Colmenero asked what type of preventive measures the city has taken to protect its networks against computer viruses and worms. Mr. Gericke answered that this was a major concern, and the city was using "firewalls", anti-virus software and staff training to protect the city's networks. The next presentation was Item 24, a Water Supply and Strategy update. Assistant City Manager Ron Massey first provided an brief review of the state water planning process. He said Senate Bill 1 was enacted in 1997 to provide for state water resources management, and consequently, the city produced its regional plan on January 3, 2001. He said the state then incorporated the sixteen regional plans into the Texas State Water Plan, published on December 31, 2001. He stated that there were two types of strategies included in the state water plan, near-term strategies (before 2030) and Tong -term strategies (after 2030). Mr. Massey discussed the water supply strategies for Planning Region N, the city's region. He said the near-term strategies (until 2030) included two broad user groups, the water user group small quantity and the major water providers large quantity. Mr. Massey said the plan included the following strategies for the water user group small quantity group: Gulf Coast or Carrizo aquifer - package desal plants, conservation, and system interconnects. He said, however, that the plan did not include any near-term strategies for the major water provider large group, primarily comprised of San Patricio County and Nueces County, because their water needs were met up until 2030. Regarding the long-term strategies (after 2030), Mr. Massey said the plan included the same basic strategies for the water user groups small quantity. Unlike the near-term plan, this plan did include strategies for the major water providers large quantity group as follows: an interruptible Texana water, improvements in water quality and conservation efforts, the Garwood Pipeline, and ASR in the Gulf Coast aquifer. Mr. Massey referred to a chart outlining the city's current water supply initiatives and their costs per acre-foot, compared with the cost in the regional water plan. He named the following Minutes - Regular Council Meeting March 2, 2004 - Page 13 initiatives: Texana Firm and Interruptible water; wastewater diversion projects; Padre Island brackish desal and ASR; Garwood Pipeline; Governor's seawater desalination initiatives; and Corps feasibility studies of the Nueces River Basin. Mr. Massey said the first four initiatives were relatively low in cost, while the last two projects were attractive because they were "targets of opportunity". Mr. Massey discussed the issues surrounding the use of groundwater, a prominent topic in water management now. He said the main concerns about groundwater revolved around the water levels, the quality of the water (saltwater intrusion), and subsidence. Other concerns were the purchase of groundwater rights; groundwater competition; regulations by new districts; extensive permitting; and environmental mitigation. Mr. Massey also reported on recent events related to the use of groundwater. He said that a Senate subcommittee had been created and had been holding hearings to identify groundwater issues to be addressed in the next legislative session. He mentioned that the San Antonio Water Supply (SAWS) had signed a Letter of Intent with a group in Refugio County to move groundwater as part of their project with the Guadalupe / Blanco River Authority. He said new groundwater districts and alliances were being created, especially in Refugio County, Bee County, Victoria County and Goliad County. He said the LBG Guyton report, issued in response to the SAWS contract, was being challenged because it stated that there was sufficient groundwater available in Refugio County. He said that there were several groundwater modeling initiatives available, and several companies were offering leases for groundwater. He said this prompted the San Patricio Municipal Water District to issue their recent RFP. Mr. Massey briefly reviewed the city's 2003 total water supply. He defined two related concepts, a firm yield and a safe yield. He said a firm yield involved pumping the reservoirs dry, while a safe yield allowed for pumping until a six-month water supply was left. Using a firm yield concept, Mr. Massey said there were 237,000 acre-feet of water available. Under the safe yield concept, there was 202,909 acre-feet of water available. Mr. Massey presented a graph illustrating the city's water supply and demand from 2000- 2010. The graph included several models, namely a growth rate model, linear regression model, firm yield supply, safe yield supply and actual demand. Over the ten-year period, he said each of the models produced the same results regarding demand. The graph showed, for example, that the growth rate model projected that water demand would be 156,416 acre-feet in 2010, while the linear regression model projected that water demand levels would be 155,731 acre-feet. The graph showed that the safe yield model projected water demand to be 201,834 linear feet and firm yield was 235,650 acre-feet. In addition, Mr. Massey said the graph displayed the actual demand from 2002- 2003. He noted that in 2000, the actual demand was 128,227 acre-feet, but it decreased in 2002 to 112,996 acre-feet because of heavy rainfall. Mr. Massey also presented a graph which projected supply and demand to 2060. According to the projections, he said the city would have a sufficient water supply until 2028, rather than 2025, as previous projections had predicted before the city had built the Lake Texana pipeline. Mr. Massey referred to a pie chart illustrating the percentage of sales for the city's water users. The City of Corpus Christi comprised 62.83 percent of the water sales. Minutes - Regular Council Meeting March 2, 2004 - Page 14 Mr. Massey discussed the process for the raw water cost adjustment (RWCA). He said the process was implemented in 1997, and was designed to recover all water supply expenses on an annual basis, yet remain revenue neutral. It consisted of the ratio of total annual expenses divided by the estimated units of water sold per 1,000 gallons, which would be passed on to the consumers. He said if the city over collected, the balance would be applied to the next year's revenue stream to reduce the revenues, and vice versa. Mr. Massey referred to a graph depicting the historical raw water costs per thousand gallons over the last ten years (1995-2004). The rate increased by 16.3 cents, or 18 percent, over this period, culminating in a 90 cent charge in 2004. Of the 16.3 cents, he said 12 cents was attributed to low sales, and 4.3 cents was due to increasing expenses. Mr. Kinnison asked if there were any RWCA projections for 2004-2005. Ms. Martha Messer, an accountant in the Finance Department, stated that her preliminary projections showed a four percent increase to approximately 92.5 cents per thousand gallons. Mr. Massey said that the RWCA was under collected in 2003 by $3.9 million, which meant that this amount would be automatically rolled over into the projected expenses for 2004. Mr. Kelly asked why, over time and with the adjustments, the raw water costs had not stabilized. Mr. Ed Garana, Director of the Water Department, replied that the estimate for the gallon units sold could be volatile. The gallon units sold per thousand, or demand, was dependent on several factors, such as the weather, which could be difficult to predict. Mr. Massey said staff was now using a four-year average to base their projections. City Manager Noe added that staff could provide a report comparing staff's estimates for water usage from 1997 to the present and, if applicable, the amounts that were carried forward. Mr. Massey cautioned that the increase in raw water costs was not solely because of under collection the previous fiscal year; rather, increases in expenses were additional factors, such as when the city made capital expenditures for new water sources (i.e. construct the Garwood pipeline) or for maintenance on existing water sources (i.e. repairs to Wesley Seale dam). Mayor Neal asked staff to revisit the original raw water cost formula to demonstrate that the revenues have only been used to defray the cost for developing new sources of water and/or for repairs on existing sources of water. Mr. Massey discussed the previously mentioned San Patricio Municipal Water District's Groundwater Land Lease Request for Proposal (RFP) in more detail. He said the initial capacity being requested was 10 MGD, with the capability to expand to 40 MGD, to be transported to their facility in Ingleside. He said the district proposed to design, construct, own and operate the facility. Additionally, the San Patricio district was requesting information on the quantity and quality of the groundwater; a price proposal (dollars per 1,000 gallons or acre-feet); the identity of the lessor; and information on any third parties involved (regulatory approvals, potential opponents). Mr. Massey provided a chart enumerating the impact San Patricio's initiative could have on the city's raw water costs. If water sales increased by 10 MGD, the RWCA would decrease to 81 cents, assuming sales of $39,850,000 per 1,000 gallons. Conversely, if sales decreased by 10 MGD, the RWCA would increase to 99 cents per gallon, assuming sales of $32,550,000 per 1,000 gallons. Mr. Massey said the rate was basically 10 cents per 10 MGD. Mayor Neal asked how many MGD San Patricio used now. Mr. Garana replied that they used approximately 19,000 acre-feet, and purchased an additional 3,700 acre-feet of treated water. Minutes - Regular Council Meeting March 2, 2004 - Page 15 Mr. Scott observed that the city did not include groundwater as a strategy in their initial regional plan because the acquisition would have increased raw water costs without an increase in sales, since the city had already met its water needs in the near-term and would not draw from the groundwater until later. City Manager Noe added that if the city wanted to consider using groundwater as a water supply, it should be considered as part of the plan for the region. City Manager Noe said staff would provide the requested information on the raw water cost adjustment at the next Council meeting on March 23. The final presentation was Item 25, a discussion on the development of the Bond 2004 program. Assistant City Manager Mark McDaniel discussed various issues related to affordability. He said the debt for the bond issue could be structured in the following two ways: a $70 million issue that would require no tax increase for debt service; or a $100 million issue that would require a three -cent tax increase for debt service. He said another issue was the operation and maintenance (O&M) costs for the proposed projects that may require an additional tax increase. Finally, another issue was the utility relocations for a number of the proposed projects that will require additional utility rate increases. City Manager Noe added that the city had the data on this issues for the Council's consideration in the decision making process for the bond package. Assistant City Manager McDaniel stated that the bond packages assumed a three percent annual growth rate in property values and a 4.98 percent interest rate. He also discussed the potential impact of Proposition 13, saying that in Year 1 (2004), the impact would be a quarter cent, growing to 2.76 cents in Year 10 (2014). He clarified that the $70 million bond package without a tax increase assumed that Proposition 13 was not a factor. Mayor Neal asked how long it would take staff to provide prioritization on the major street projects. He commented that based on the large scope of needs in the community and the amounts other governmental entities were issuing, he felt that the $100 million would be more appropriate. Council Member Kinnison commented that he would like to see staff's prioritization of the projects because he wanted to know which projects would have the greatest impact on the community. He also said he would like to see the O&M costs and utility relocation costs associated with the proposed projects. Mr. Kinnison said he was concerned that the community would overextend itself financially if it were to approve the large bond issues being proposed by the city and CCISD, in addition to the previously approved bond issue by Del Mar College. He said he feared that the city would end up with the highest tax rate in the state if it passed all of these large bond issues, to the detriment of area businesses and the citizens. He also asked for information on the effects of Proposition 13 on the bond issues. Mr. Colmenero observed that if Proposition 13 were approved, the tax burden would be borne by only 4/5ths of the community. He also commented that the community would have to decide whether the city's infrastructure and other needs should be addressed now, or deferred to a later date at a higher cost. Mr. Scott stated that an $100 million bond issue seemed appropriate, but he had concerns about the increases in the tax rate. He was also concerned about the local development community's Minutes - Regular Council Meeting March 2, 2004 - Page 16 ability to complete all of the projects. City Engineer Escobar replied that in his discussions with the development community, they felt they could handle the work. He also said that his sense was that the out-of-town businesses would fill in the gaps, keeping the costs competitive. Mr. Kelly asked staff to provide information on what additional projects the $30 million difference between the $70 million issue and the $100 million issue could provide. Mayor Neal called for a brief recess to present proclamations. * * * * * * * * * * * * * The Council returned from recess, and Mayor Neal called for petitions from the audience. Mr. Jack Gordy, 4118 Bray, spoke regarding his concerns about the Council members allegedly charging their Chamber of Commerce membership dues to their council accounts, and also regarding bilingual postings for the Public Information Act. Mr. Bill Kopecky, 3609 Topeka, spoke in favor of implementing Proposition 13. Mr. Abel Alonso, 1701 Thames, spoke against the implementation of Proposition 13. Mr. Sirfrederickvonusa King 7th, 905 Cleveland #4, spoke regarding his concerns about the effects of the Packery Channel project on the environment. * * * * * * * * * * * * * Mayor Neal resumed the discussion on the Bond 2004 program. Mr. Noyola stated that he preferred not to have a tax increase, but he knew that the community badly needed street improvements, so a $100 million bond issue may be more appropriate. He said he could support a $100 million issue if the projects were fairly spread out among the council member districts. Ms. Cooper spoke in support of the $100 million bond issue. She said the city may be reticent to choose a large bond issue for fear of overburdening the taxpayers, in light of CCISD's proposed bond issue, Del Mar's recent large bond issue, and the County's plans to raise taxes. But ultimately, Ms. Cooper said the city needed to let the taxpayers decide where they wanted their tax dollars to go. She said the city should not let a fear of overburdening the taxpayers prevent them from making progressive, essential improvements that the community badly needed. She said that if the city made a strong case for their bond issue, the citizens may decide to vote against CCISD or against the county. Mr. Kinnison reiterated his concern that the community would overextend itself by voting for an $100 million bond issue that includes a three -cent ad valorem tax increase, and probable utility rate increases and tax increases for O&M costs. Mr. Garrett stated that the $70 million bond issue would be more attractive because it would not increase taxes. Mayor Neal asked staff to provide information on the proposed projects for a $70 million bond issue, and break out the additional projects that an $100 million bond issue would fund, including provisions for the bayfront master plan. He also asked staff to include the utility relocation, O&M costs, and effects of Proposition 13 in the scenarios. Mr. McDaniel answered that staff would provide the information for the March 30 or the first meeting in April. * * * * * * * * * * * * * Minutes - Regular Council Meeting March 2, 2004 - Page 17 Mayor Neal called for the City Manager's report. City Manager Noe reported that a press conference would be held this Thursday at 11:00 a.m. at the American Bank on Shoreline Plaza regarding a new window decal promotion for the All -America City award. He also referred to a memo outlining a number of staff changes, including the appointment of Ms. Debbie Marroquin as Acting Budget Director and Assistant City Manager Margie Rose as Acting Parks Director. Finally, Mr. Noe said that the following items were scheduled for Council consideration at the March 23 meeting: presentation on the Velocity Games; parameter sale on the bond issue for the baseball stadium; and the landfill discussion tabled on February 24. Mayor Neal called for Council concerns and reports. Mr. Kinnison congratulated Flour Bluff, Tuloso-Midway, Carroll, Moody, and King High Schools for participating in the Academic Decathlon held in San Antonio last weekend. He recognized King High School for placing fifth in the state in the large school category, the highest level ever achieved by a CCISD school. He noted that his son was a member of the King High School team, and congratulated him. Mr. Kinnison also announced that the NCAA has named Corpus Christi as a site selection finalist for a women's NCAA tournament game. He said SMG was working with Texas A&M University- Corpus Christi to hopefully secure the tournament for next year. Mr. Kinnison also noted that the Council had received the County's response, through their attorney, Mr. Van Huseman, to the city's letter regarding the county jail contract. He commented that their response indicated some level of confusion about the city's offer. He said their response indicated that if the city was proposing to spend $1.8 million on a new center, and the county was asking for $2 million, then it seemed both sides were close to making a deal. City Manager Noe answered that there was some level of confusion. He said the county was actually offering to completely operate the jail for the $2 million, including the i.d. services. He said, however, that the city was not comfortable with this offer because they were unsure what level of i.d. services the county would provide. He said the letter was more of a comparison of the current offer of $797,000 to the $2 million. Mr. Noe stated that there was a benefit to meeting one more time to make sure the county understands the offer. He said the simplest way to do this was to offer them a contract outlining the terms in detail. Mr. Kinnison asked how the city could present this information to the County Commissioners Court as a whole, because he felt that the entire court was not fully informed about the city's offer. Mr. Noyola suggested that the city and county have a joint meeting to discuss the matter. Mr. Kinnison replied that based on the current environment, he felt the meeting would deteriorate. He suggested that if a joint meeting were to take place, it should be with a small groups of county commissioners and council members. Mr. Noe said the biggest disappointment he had with the county's response was that it did not come directly from the County Judge or a county commissioner; rather, their attorney replied on their behalf. Mr. Kinnison said he understood that any county commissioner could ask to place an item on the agenda. City Manager Noe said he would be willing to sign up for public comment at a commissioners court meeting if desired. Mayor Neal cautioned that he had seen the County Judge pass over items on the agenda if he did not choose to discuss them. Mr. Noe stated that he would be happy to transmit another letter asking the County Judge to place the issue on the agenda. He added that staff was moving forward on plans to create the magistration center now. Mr. Kinnison emphasized that he did not feel that the taxpayers would benefit if the city were to construct and operate its own magistration center, so every effort should Minutes - Regular Council Meeting March 2, 2004 - Page 18 be made to negotiate with the county. He also said he hoped the newspapers and the editorial board would provide the public with the facts about the matter, since there was a degree of misinformation circulating about the city's offer. Ms. Cooper asked about the status of the nightclub that was going to constructed on Staples Street across from King High School. Mr. Kinnison replied that the project was still in progress, but their time line had been delayed. Ms. Cooper stated that it was difficult to make a right turn onto McArdle Road toward the malls because of the construction. She thought the turn was too sharp, and she asked staff to investigate. She also asked staff to investigate a problem with a turn from Staples Street to the expressway. She announced that the next town hall meeting would be held on April 5 at Lindale Senior Center, hosted by Council Member Colmenero and the other at -large council members. Mr. Kelly commented on the report in the City Manager's Transmittal regarding a leaky roof at Northwest Library. He commended staff for addressing the problem so effectively. Mr. Noyola asked staff to speak with TxDOT about improving the signage marking the turn on Hwy. 44 to the airport going west. He also reported that there was trash in gutters on Saratoga Boulevard near Weber and Kostoryz, and trash in the gutters on Kostoryz near the turn to Galvan Elementary. He also provided the location of a stack of tires he had reported seeing last week, saying that they were on Bear Lane near Old Brownsville Road and Cliff Maus. Finally, Mr. Noyola agreed with Mr. Kinnison that the city must make every effort to speak with the county to resolve the jail issue. Mr. Scott asked when the next update on the desal project on Padre Island was scheduled. City Engineer Escobar replied that the next update was scheduled for March 23. He said he would also like a document from the City Manager outlining the costs for the Southside Transmission Line, including the costs for the Laguna Madre. Mr. Scott asked City Manager Noe about a letter from Mr. Bill Durrill expressing concern about the quality of development on Saratoga Boulevard. City Manager Noe replied that Mr. Dun -ill's concern was about regulating the style of development, but he reported that regulations on signage were in progress. Mr. Kinnison interjected that he would like a written update on the signage regulations, and he agreed with Mr. Durrill that Saratoga Blvd. did need regulations regarding development. City Manager Noe replied that the regulations were part of the area development plan, but staff could develop a schedule to provide a separate ordinance on signage. Mr. Kelly added that the same signage issues applied to F.M. 624 in his district. Mr. Noe replied that the ordinance would apply citywide, not just to Saratoga. Mr. Scott asked if the county was assisting the city in controlling traffic on the island during Spring Break. Assistant City Manager Margie Rose said the county constable's office was providing assistance during beach activities. Mr. Scott said that the county's limited assistance was another example of the county's lack of cooperation. He invited the Council to attend the Rotary Club meeting at noon this Thursday at the Ortiz Center to hear Mr. David Dean, Executive Director of TX -21, speak regarding state transportation issues. Finally, he asked Mr. Noe to work with SMG to assist them in generating sales at the arena to ensure a successful opening. City Manager Noe said he speaks with Mr. Marc Solis daily to discuss plans on the arena. Mr. Colmenero echoed Mr. Scott's sentiments regarding the arena. Regarding the Minutes - Regular Council Meeting March 2, 2004 - Page 19 Neighborhood Improvement Program, he asked to have more reviews on past projects to ensure the areas would sustain the improvements. City Manager Noe replied that staff was working on one- year sustainability plans for each of the previous areas. Mr. Colmenero asked that several lamps that were removed on Furman Avenue be replaced. Finally, he asked for an update on negotiations for international air service at the airport. There being no further business to come before the Council, Mayor Neal adjourned the Council meeting at I :17 p.m. on March 2, 2004. * * * * * * * * * * * * *