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HomeMy WebLinkAboutMinutes City Council - 06/29/2004I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Regular Meeting of the Corpus Christi City Council ofJune 29, 2004, which were approved by the City Council on July 13, 2004. WITNESSETH MY HAND AND SEAL, on this the 13th day of July 2004. Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting June 29, 2004 - 10:04 a.m. PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Rex Kinnison Council Members: Brent Chesney Javier D. Colmenero Henry Garrett Jesse Noyola ABSENT Melody Cooper Bill Kelly Mark Scott 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 Senior Pastor David E. Kelly of the New Beginnings Community Church and the Pledge of Allegiance to the United States flag was led by Council Member Noyola. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Neal called for approval of the minutes of the regular Council meeting of June 22, 2004. A motion was made and passed to approve the minutes as presented. Mayor Neal announced that he had spoken with Sgt. Mario Gomez by telephone today from Iraq. Sgt. Gomez requested that a City of Corpus Christi flag be sent to his unit, the 961` Supply Company, so they could fly it in Iraq. On behalf of the Council, Mayor Neal wished them the best of luck. * * * * * * * * * * * * * Mayor Neal called for consideration of the consent agenda (Items 2-15). Mr. Bill Kopecky, 3609 Topeka, requested that Items 8 and 10 be discussed. There were no comments from the Council. A motion was made and passed to approve Items 2 through 15, constituting the consent agenda, except for Items 8 and 10, which were pulled for individual consideration. City Secretary Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting June 29, 2004 - Page 2 2. MOTION NO. 2004-232 Motion approving the purchase on one (1) 70 HP trenching machine from Valley Ditch Witch, Inc., of Corpus Christi, Texas in accordance with Bid Invitation No. BI -0070-04 based on low bid meeting specifications for a total amount of $63,853.27. The equipment will be used by the Gas Department. Funding is available from the FY 2003-2004 Capital Outlay Budget in the Maintenance Services Fund. This item is a replacement to the fleet. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. 3. MOTION NO. 2004-233 Motion approving an upgrade to the security/access systems located at the Water Utilities Building, Wesley Seale Dam and the O.N. Stevens Water Filter Plant with Total Protection Systems, Inc., of Corpus Christi, Texas in the amount of $64,736.80. The award is based on the Cooperative Purchasing Agreement with the State of Texas. Funds have been budgeted by the Water, Wastewater and Storm Water Departments in FY 2003-2004. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. 4.a. RESOLUTION NO. 025801 Resolution authorizing the City Manager or his designee to accept a 2004 State Homeland Security Program Grant from the Texas Engineering Extension Service in the amount of $298,365 for purchase of specialized equipment under the State Domestic Preparedness Equipment Program and to execute all related documents. The foregoing resolution was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. 4.b. RESOLUTION NO. 025802 Resolution authorizing the City Manager or his designee to accept a 2004 State Homeland Security Law Enforcement Terrorism Prevention Program (LETPP) Grant from the Texas Engineering Extension Service in the amount of $156,807 for purchase of specialized equipment under the State Domestic Preparedness Equipment Program and to execute all related documents. The foregoing resolution was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. Minutes - Regular Council Meeting June 29, 2004 - Page 3 5.a. RESOLUTION NO. 025803 Resolution authorizing the City Manager or his designee to execute a contract modification proposed by the Federal Emergency Management Agency (FEMA) that would add a one year extension to the Metropolitan Medical Response System (MMRS) contract between the City of Corpus Christi and FEMA to accept funding in the amount of $280,000 to be used to develop an inventory of capabilities report, to sustain the progress of the original project, and to expand the MMRS project beyond the boundaries of the City. The foregoing resolution was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. 5.b. ORDINANCE NO. 025804 Ordinance appropriating $280,000 from the Federal Emergency Management Agency (FEMA) in the No. 1062 Fire Grants Fund to fund the statements of work identified in the Metropolitan Medical Response System contract modification with FEMA. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. 6.a. RESOLUTION NO. 025805 Resolution authorizing the City Manager or his designee to accept a grant from the Texas Department of Health in the amount of $89,010 for diabetes prevention and management services. The foregoing resolution was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. 6.b. ORDINANCE NO. 025806 Ordinance appropriating a grant in the amount of $89,010 in the No. 1066 Health Grant Fund from the Texas Department of Health for diabetes prevention and management services. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. Minutes - Regular Council Meeting June 29, 2004 - Page 4 7. ORDINANCE NO. 025807 Ordinance authorizing the City Manager or his designee to execute a Use Privilege Agreement with Old Concrete Street, Ltd., for the right to use a portion of the Broadway Wastewater Treatment Plant property for staging a fireworks display on July 4, 2004, and establishing a fee of $460.00. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. 9. MOTION NO. 2004-235 Motion authorizing the City Manager or his designee to execute a construction contract with C -D Electric, of Corpus Christi, Texas in the amount of $76,000 for the O. N. Stevens Water Treatment Plant River Pump Station Raw Water Pump No. 10 Pump Repairs -REBID. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. 11. MOTION NO. 2004-237 Motion authorizing the City Manager or his designee to execute Amendment No. 1 to the Engineering Services Contract with Freese & Nichols, Inc., of Fort Worth, Texas in an amount not to exceed $64,600 for the Wesley Seale Dam Actuator Replacement. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. 12.a. ORDINANCE NO. 025809 Ordinance appropriating $30,000 from unappropriated settlement proceeds in the No. 3160 City Hall Capital Improvement Program Fund to provide funding for architectural services for the City Hall Renovation Phase 2 Project; amending the FY 2003-2004 Capital Budget adopted by Ordinance 025647 by increasing appropriations by $30,000. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. Minutes - Regular Council Meeting June 29, 2004 - Page 5 12.b. MOTION NO. 2004-238 Motion authorizing the City Manager or his designee to execute Amendment No. 2 to the Architectural Services Contract with Dykema Architects, Inc., of Corpus Christi, Texas in an amount not to exceed $26,600 for City Hall Renovation Phase 2 Project. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. 13.a. ORDINANCE NO. 025810 Ordinance appropriating $89,748 in interest earnings from the unreserved fund balance of the No. 4243 Wastewater 1999A Capital Improvement Fund to pay the arbitrage rebate to the Internal Revenue Service; amending FY 2004 Capital Budget adopted by Ordinance 025647 by increasing appropriations by $89,748. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. 13.b. MOTION NO. 2004-239 Motion authorizing the City Manager or his designee to pay $89,748 of excess arbitrage interest earnings to the Internal Revenue Service for the Utility System Revenue Refunding and Improvement Bonds, Series 1999A as required by the Internal Revenue System at each five-year anniversary date. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. 14. MOTION NO. 2004-240 Motion authorizing the City Manager or his designee to authorize payment of invoices 061504 -LH and 061604 -LH for twelve months software maintenance with Sungard HTE, Inc., of Lake Mary, Florida in an amount not to exceed $108,402.20. Included in the maintenance agreement are the Sungard HTE modules for Utilities Business Office, Central Cashiering, Accounts Receivable, Collections, Development Services, and Housing and Community Development. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. Minutes - Regular Council Meeting June 29, 2004 - Page 6 15.a. MOTION NO. 2004-241 Motion authorizing the City Manager or his designee to execute a contract with AVNET Enterprise Solutions, of Austin, Texas in the amount of $384,085 to provide and install an IP Phone and Data System in the Arena and Convention Center. AVNET Enterprise Solutions is a Catalog Information Systems Vendor (CISV) with the State of Texas. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. 15.b. MOTION NO. 2004-242 Motion authorizing the City Manager or his designee to purchase fiber optic cable, connectors and associated equipment from Graybar Electric Company, Inc., of Corpus Christi, Texas in the amount of $79,242.60. This cable is needed for the IP Phone and Data System in the Arena and Convention Center and will be installed by City forces. Graybar Electric Company, Inc. has been awarded the electrical and communications/data contract under United States Communities Program and this pricing has been made available to the C ity. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. Mayor Neal opened discussion on Item 8 regarding a construction contract for Phase 1 of the public safety training facility. Mr. Bill Kopecky, 3609 Topeka, stated that he thought it was inappropriate to place a contract for over $1,000,000 on the consent agenda. Mr. Kopecky also commented on Item 10 regarding a traffic engineering consulting services contract. He stated that generally speaking, traffic engineering as a field has lost its emphasis in most cities. He thought this was one of the reasons the city was having difficulty recruiting a traffic engineer. City Manager Noe added that the liability costs for traffic engineers also inhibits individuals from entering the field. He said this contract would enable the city to continue with their program using outside services until a traffic engineer can be hired. City Secretary Chapa polled the Council for their votes as follows: 8.a. ORDINANCE NO. 025808 Ordinance appropriating $55,926.57 from the unappropriated interest earnings from Public Health and Safety 2001 Capital Improvement Program Fund No. 3358 for the Public Safety Training Facility, Phase 1 Project; amending FY 2004 Capital Budget adopted by Ordinance 025647 by increasing appropriations by $55,926.57. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. Minutes - Regular Council Meeting June 29, 2004 - Page 7 8.b. MOTION NO. 2004-234 Motion authorizing the City Manager or his designee to execute a construction contract with Barcom Commercial of Corpus Christi, Texas in the amount of $1,400,123 for the Public Safety Training Facility, Phase 1. (BOND ISSUE 2000) The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. 10. MOTION NO. 2004-236 Motion authorizing the City Manager or his designee to execute a contract with Wilbur Smith Associates of Dallas, Texas in an amount not to exceed $59,500 for traffic engineering consulting services on an as needed basis. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. * * * * * * * * * * * * * Mayor Neal deviated from the agenda and referred to Item 18, a presentation on the Fourth of July - Big Bang Celebration by the Mayor's Planning Committee. Ms. Diana Z. Garza, assistant to the Mayor, introduced Mr. Vic Menard, Planning Committee co-chairman and Ms. Vicky Lewis with the Buccaneer Commission, who reported on the planned festivities. Director of Public Information Cheryl Soward also reported on the city's new "Make it Sparkle" campaign, an anti- littering campaign being introduced during the Fourth of July celebration. Mayor Neal then referred to Item 19, a quarterly update from the Corpus Christi Convention and Visitors Bureau (CVB). CVB Director Tom Galyon said this update would include a brief review of the CVB's 2004-2005 marketing plan and a comparative analysis of Corpus Christi with other competitive Texas cities. Mr. Galyon first discussed the CVB's marketing plan, pointing out several new features. First, he said the CVB has established an Austin office with a full-time sales person focusing on the state association and government conference markets. Second, a full-time sports sales position has been established. Third, they've developed a "Be a Tourist in Your Home Town" promotion, to be launched during Tourist Week in May. Fourth, he said the CVB would continue to enhance their website and offer travel packages. Fifth, he said he wanted to re -focus the city's leisure and convention ads to Texas and certain surrounding state markets. Finally, he said the CVB planned to develop and conduct hospitality training for all front line employees, in partnership with the Corpus Christi Hotel Motel Condominium Association. Mr. Galyon stated that the marketing plan assumed the approval of the CVB's requested $2.4 million annual operating budget. In addition, he noted that the CVB's five year contract with the city was up for renewal in July 2005. He said the CVB's funding objective was to establish a long-term stable funding contract for the CVB that allows for proper marketing/sales promotion programming based on measurable goals. Minutes - Regular Council Meeting June 29, 2004 - Page 8 Mr. Galyon then provided a comparative analysis of Corpus Christi with other competitive Texas cities. He remarked that the city was seeing increased competition over the last two years from a number of Texas cities. He said, for example, that a Hilton of America had opened in Houston, with 1,200 rooms and 91,000 square feet of meeting space adjacent to the convention center. The Hilton of Austin had also recently opened with 800 rooms and 60,000 square feet of meeting space adjacent to the convention center. Finally, new Schlitterbahn water parks had opened in South Padre Island and Galveston. In addition, Mr. Galyon said that out of seven comparable cities in Texas, Corpus Christi ranked seventh in its overall budget, and would rank last if the Columbus fleet was factored in. He said Forth Worth's budget was $4.5 million, collecting $8.9 million in total bed tax; Irving had a $4.4 million budget, and collected $10.8 million in total bed tax; Arlington had a $2.8 million budget, and collected $4 million in total bed tax; South Padre had a $2.6 million budget, and collected $4.2 million in total bed tax; Galveston had a $2.4 million budget; Corpus Christi had a $2.3 million budget (including $245,000 yearly payment for Columbus fleet), and collected $6.1 million in total bed tax; and EI Paso had a $2.1 million budget. Mr. Galyon then provided a comparison of the funding based on available rooms in selected cities for CVB sales/marketing/administrative activities. Out of seven Texas cities (Forth Worth, Irving, Arlington, South Padre, Galveston, and El Paso), he reported that Corpus Christi spent the least amount of resources, $268 per room. He also compared Corpus Christi with four other comparable cities in the country, like Hartford, CT ($322 per room) and Lexington, KY ($438 a room), and found that the city was also in last place. Finally, Mr. Galyon provided the occupancy numbers per year in the Corpus Christi metropolitan statistical area (MSA) and in the city from 1994-2003. He said the numbers were relatively flat in both areas, averaging 52 percent in the MSA and 54 percent in the city. He attributed the poor performance to two factors. First, he said the last quarter of the year was historically the worst performing quarter, and thus, it brought the numbers down. Second, he said conference and meeting business represented approximately 25 percent of the city's visitor impact, with the remainder comprised of leisure travel. Mr. Galyon then answered questions. Mr. Colmenero spoke in support of Mr. Galyon's plan to provide hospitality training for all front line employees. He was concerned, however, about the retention rate of employees in front line positions. Mr. Galyon replied that there would be somewhat of a "revolving door" effect in the training effort, but the training would still be worthwhile. He added that the CVB has discussed offering front line employees opportunities for mentoring and career advancement as well. Mr. Colmenero also asked about the effort to refocus leisure/convention ads to Texas and certain surrounding state markets. Mr. Galyon explained that the CVB's previous advertising campaign was more of a shotgun approach, appearing in 32 different publications. He said that the response from the publications was scarce, with the exception of the Texas publications. Thus, he said the decision was made to refocus the ads to the Texas area, as well as trying the Louisiana and Oklahoma markets, since Corpus Christi was considered a "drive to" destination. Finally, Mr. Colmenero asked about the Mexico marketing effort. Mr. Galyon answered that the CVB and the Hispanic Chamber of Commerce were discussing the effectiveness of the Ill i is _, - Regular Council Meeting J ` '004 - Page 9 Monterrey, Mexico advertising campaign, and he also mentioned a new tourism opportunity involving a proposed ferry service from Vera Cruz. Regarding the comparative cities study, Mr. Kinnison asked for more detailed information on what the CVBs in those cities were spending their money on. Mr. Galyon said the information was not readily available, but he would provide it at a later date. Mr. Kinnison also stated that while he supported increasing the CVB's funding, preferably based on performance, he emphasized that he thought the CVB should pursue other revenues sources, like an increase in the hotel occupancy tax. ************* Mayor Neal referred to Item 16, and a motion was made, seconded and passed to open the public hearing on the following item: 16.a. Public hearing on request for a variance to operate an establishment with on -premise consumption of alcoholic beverages at an establishment known as Santiago's Cafe located at 5702 South Staples Street, Suite #E6. Mayor Neal called for public comment. Mr. Chris McJunkin, attorney at law, spoke on behalf of his clients, Ms. Mirrna Elodia Pietsch and Mr. Gilberto Gonzalez Jr., the applicants. He explained that his clients had recently reopened Santiago's Cafe in the Copperfield Shopping Center, 5702 South Staples Street. They had applied for a permit to sell beer and wine at the restaurant because the previous license was in the former owner's name. Their application was denied, however, by the city's Development Services department because the restaurant was located within 128 feet of a day care center, namely the Discovery Days Child Development Center. Thus, his clients were requesting a variance regarding Section 4-5(a) of the Code of Ordinances which prohibits the dispensing and sale for on -premises consumption of alcoholic beverages within the city limits within 300 feet of any church, child care facility, day care facility, public or private school, or public hospital. Mr. McJunkin then explained the basis for his clients's request for a variance. He noted that there were currently two other establishments in the Copperfield Shopping Center that sold alcoholic beverages for on-site consumption, the Imperial Cafe restaurant and Whiskey River nightclub. He also stated that the day care's hours of operation were Monday through Friday from 6:30 a.m. to 6:30 p.m., while the bulk of the restaurant's alcohol sales were expected to be in the evening hours and on the weekends. In addition, he said the owners would experience undue hardship and ineffective use of the land if the variance was not granted because Santiago's Cafe would not produce a profit if they were unable to provide this service to their customers. A motion was made, seconded, and passed to close the public hearing. City Secretary Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting June 29, 2004 - Page 10 16.b. RESOLUTION NO. 025811 Resolution granting a variance, under Section 4-5(F) of the Code of Ordinances, to Mirrna Elodia Pietsch and Gilberto Gonzalez, Jr., to operate an on -premise alcoholic beverage establishment located at 5702 South Staples Street, Suite #E6. The foregoing resolution was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly and Scott were absent. * * * * * * * * * * * * * Mayor Neal deviated from the agenda and returned to the presentations on the day's agenda. He referred to Item 20, an update on the Bayfront Master Plan. City Manager Noe explained that at their last briefing on April 13, the Council was provided four options by the design team. Since that time, the design team has developed Option #4 in more detail, including cost estimates for implementation. Mr. Raymond Gignac of Gignac and Associates provided a brief review of the existing conditions on Shoreline Boulevard. He then reviewed the four options that were proposed on April 13. Option 1 proposed shifting Shoreline Boulevard to the west to create a 2-1/2 mile green space from McGee Beach to the arena and convention center. Option 2 proposed shifting Shoreline Boulevard to the west, north of Lawrence Street. Option 3 proposed shifting Shoreline Boulevard at the downtown segment. Finally, Option 4, which was the design team's recommendation, proposed shifting Shoreline Boulevard to the west to create a large park on the southside of Shoreline, return to the water's edge along the marina and downtown to create a series of small neighborhood parks, and then shift westward again north of I-37 to create an Art District park. In addition, Mr. Gignac noted that all downtown streets in the area would extend to the water, forming a connection between the bayfront and downtown. Mr. Gignac discussed the positive elements of recommended Option 4 that the design team had heard from the public following numerous presentations. First, it provided variations in green space and the relationship of the automobile to the water's edge. Second, it created an arrival feature at Shoreline Boulevard and IH -37. Third, the green space created opportunities for small scale commercial elements. Fourth, the green space was designed to promote flexibility and multi -use capabilities. Fifth, the plan created true pedestrian connections to the water at the North and South parks. Sixth, he said the waterfront pier and pedestrian walkways were well-received. Overall, Mr. Gignac stated that the public seemed to like the plan because it made the bayfront and Shoreline Boulevard more usable. Mr. Kevin Gordon with TVS Architects provided more specifics on the detailed plan the design team had been working on since April. He reported that the team had moved forward with the projects plans on several fronts. He said the team had been working closely with Wilbur Smith Associates to address traffic and parking concerns. Regarding funding, Mr. Gordon reported that the team was working with the Anderson Group, a local firm, to actively investigate the cost estimates for the project. In addition, he said the team had retained Mr. Charlie Johnson with the C.H. Johnson firm from Chicago to assist the city in determining their funding opportunities to Minutes - Regular Council Meeting June 29, 2004 - Page 11 realize either the entire master plan or discrete components. Mr. Gordon emphasized that the plan was unique and challenging in that it covered an area that was 2-1/2 miles long. Mr. Gordon then provided a more detailed look at each of the distinct zones in the master plan. He first discussed the North Waterfront park zone, the area between north IH -37 and the arena. The area was characterized by a 100 -foot public park along the waterfront, and four lanes of traffic separated by a median with a left -turn lane and parallel parking. The public park would have driving trails, pedestrian trails, and small-scale festival uses. He also noted that there were many opportunities for development in the empty parcels between the federal courthouse and the arena. In addition, he said the team was recommending a setback to create a band of well-developed landscaping and green space along Shoreline Drive in those development parcels that would afford a clear view corridor from downtown up to the arena and the arena marquis and signage so they wouldn't be hidden from view by the new development. Mr. Gordon then displayed a series of "before" and "after" depictions of the proposed area. The next zone was in the downtown area between IH -37 and the Arts Center. Mr. Gordon said this zone focused more on the vehicular experience by keeping Shoreline Drive but moving it along the waterfront. The proposed series of small downtown parks would then be moved inboard or westerly to sit directly in front to downtown development. One of the purposes of the parks was to stimulate development and rehabilitation of the downtown area. Mr. Gordon reported that each of the downtown parks could have an different theme, such as sculpture gardens, interactive water features, or water gardens. He said, however, that it was important that each park preserve view corridors to allow the public to see the bay and its landmarks. Mr. Gordon then displayed a number of "before" and "after" photos of the downtown zone. Mr. Gordon described the next zone, the south waterfront memorial park development, between the Arts Center and McGee Beach This large festival park would work in conjunction with the renovated coliseum building and McGee Beach. He said the public had strongly expressed their concerns regarding pedestrian safety around the McGee Beach area since families had to cross three traffic lanes to reach the bayfront. Mr. Gordon stated that this plan addressed this concern by moving Shoreline Drive to the west side of the coliseum. The design team was recommending, however, a two-lane emergency access road between the coliseum and the water that could be opened and closed as needed. Mr. Gordon then displayed a number of "before" and "after" shots of this zone. Mr. Gordon described the final zone, the marina area. He said there was a general consensus for the uses of the marina, including new docks, a seafood market, a new pier, a breakwater extension, and a repair facility for large craft. Mr. Gordon then discussed the phasing options available. He said the design team was still investigating these options with the assistance of the Anderson Group and C.H. Johnson Consulting He said the team would make a recommendation to the Council during their next presentation in July on the phasing option they thought would provide the most beneficial use of the city's dollars. In addition, any civic consensus on the phasing would have to be factored in as well. Mr. Gordon reported on the current funding strategies for the project. He first gave a status on the economic and market analysis. As he mentioned earlier, Johnson Consulting was performing Minutes - Regular Council Meeting June 29, 2004 - Page 12 the economic and financial analysis. He said their charge was to review market conditions; evaluate development trends and opportunities; identify potential catalytic projects; analyze and help develop finance approaches; and evaluate implementation strategies. Finally, Mr. Gordon referred to a list of Johnson Consulting's preliminary observations. He said the firm has made several visits to the city over the past few months, and they would provide a report during the July presentation. Mr. Kevin St. Jacques with Wilbur Smith Associates briefly reviewed the various traffic issues on Shoreline Boulevard. He said the existing conditions on Shoreline Boulevard were as follows: 20,000 vehicles each weekday; 1,250 vehicles per hour (peak); three lanes in each direction, 80' median; and peak hour traffic was 45 percent of capacity. He said his report would address the following questions: what roadway section should be provided in the future on Shoreline Boulevard; and can the future demands on Shoreline be handled in a roadway of two travel lanes in each direction, plus a turning lane. Other shoreline traffic issues were as follows: what is the future demand on Shoreline Boulevard; current morning and evening peak traffic is 50 percent of the capacity of the proposed four lanes; peak hour traffic can double; and most traffic growth is projected to be off peak. Mr. St. Jacques concluded that their recommendation was to convert Shoreline Boulevard into a four -lane, divided roadway. He cited one exception in the north waterfront park area in front of the federal courthouse. He said the traffic management plan in this area called for three lanes southbound to handle traffic from side streets that feed into that sector. He also highlighted a circle traffic feature in the downtown area. Regarding the south waterfront park, he referred to an area near the coliseum that would be designated a "no parking" zone on either side to make room for a turn lane. Mr. Gignac concluded the presentation by reviewing the next steps in the process. First, he said the team would continue with a series of 10-20 presentations to the public. Second, he said the team would complete the preliminary estimate of construction cost. Third, the team would further explore the available funding sources. Fourth, they would proceed with the schematic design of the master plan. Fifth, they would investigate coordinating and integrating the branding of the Bayfront Arts and Sciences park, the Port of Corpus Christi, and Corpus Christi Beach areas with the master plan. Mr. Kinnison noted that the next scheduled presentation on the bayfront master plan was on July 20. He asked how this date fit in with the decision timeline for Bond 2004. City Manager Noe replied that the presentation was consistent with the Bond 2004 timeline because the Council was scheduled to bring the discussion to a close at the end of July. Mr. Kinnison asked if the cost estimates for the bayfront master plan would be ready by July 20. To be included in the Bond 2004 ballot, he understood that the costs for the bayfront project would have to be split into categories depending on the improvement (e.g. streets, parks, etc.). Mr. Gignac replied affirmatively, saying that the cost estimates were quite detailed. Mr. Kinnison also asked if the design team had decided whether shade trees could be planted on the bayfront. Mr. Gignac replied that the team was going to bring a palette of trees they thought would be suitable for the bayfront climate to the July 20 council meeting. He said, however, that Minutes - Regular Council Meeting June 29, 2004 - Page 13 there would probably need to be an investment in the "hole" the tree would be planted in to ensure that it would thrive. Finally, Mr. Kinnison asked the members of the design team who were present how they personally thought the proposed trolley system would fit best into the bayfront master plan. Mr. Gignac answered that the bayfront master plan could incorporate a trolley system either on Shoreline Boulevard or Water Street. He said, however, that during the public meetings, the overall sentiment was to place the trolley system on Water Street. Mr. Gordon agreed with Mr. Gignac. He said one downside to placing the trolley system on Shoreline Boulevard was that it would decrease the available park space by 10 to 15 feet in order to widen the center median for the route. Another downside was that from a service standpoint, placing the trolley on Shoreline would only serve one side of the route, whereas placing the trolley on Water Street would service both sides of the route. Mr. St. Jacques replied that from a traffic standpoint, there was more interference in the Chaparral/Mesquite area due to the arena and convention center. Thus, he said the trolley would be better placed on Water Street or Shoreline to service this area. He noted that south of IH -37, Water Street would be the better route. He also commented that he did not feel the Shoreline trolley route would be a faster route than the Water Street route, as the consultant's survey claimed. Mr. Kinnison asked the design team to keep track of the public's comments regarding the trolley system during their public meetings and report on them to the Council. Mr. Colmenero asked how Shoreline Boulevard would run in front of the Art Museum of South Texas. Mr. Gignac replied that when the design team was creating the arena and convention center master plan, the Art Museum at that time requested an "automobile" front door. It seemed, however, that the Art Museum was no longer in support of this concept. Now, he said the plan was to provide a turnaround at the end of Shoreline in front of the convention center. Mr. Gignac added, however, that this aspect of the bayfront master plan was being omitted now until the Art Museum made a final decision. Mr. Noyola spoke in support of the bayfront master plan. He emphasized, however, that the citizens would have to support the plan as well. He also stated that the RTA and the city needed to be on the same page regarding the proposed trolley system to ensure its success. Finally, Mr. Chesney commented that the feedback he has received from the public indicates that the "less invasive the plan is, the better". He said these citizens feel the bayfront is nice as it is, although recognizing a need for improvements to the marina and other enhancements. Mr. Gignac replied that the implementation of the bayfront master plan would double or triple the current activity because of the improvements. He said the individuals who attended the public meetings have indicated the opposite. Regarding the trolley system, he said he was against placing the trolley system on Shoreline Boulevard, pointing out that the Council had passed a resolution to that effect. Mayor Neal called for a brief recess to present proclamations. * * * * * * * * * * * * * Mayor Neal called for petitions from the audience. Mr. Danny Noyola, 4410 Acushnet, spoke in support of increasing the budget allocation for the Neighborhood Improvement Program Minutes - Regular Council Meeting June 29, 2004 - Page 14 and in support of the bayfront master plan. On behalf of the Corpus Christi Barrios Association, he spoke in support of preserving the Memorial Coliseum and also mentioned a memo he had distributed regarding their lobbying efforts. Mr. Jack Gordy, 4118 Bray, spoke regarding alleged police actions in an incident in his home. Mr. Jeff Beynon, 3617 Castle River, spoke regarding his concerns about a proposed low-income housing unit on McKenzie Lane. Mr. Andy Barboza, 7802 Sara Lynn, spoke regarding his concerns about the Corpus Christi Firefighters Association pension plan. Mr. Mark Newchurch, 314 East Bayou Road, spoke regarding problems with the building permit process for the new Lowe's store on Airline Road. Mr. Bill Kopecky, 3609 Topeka, spoke regarding his concerns about the legality of an alleged closed session held during a Water Shore Advisory Committee meeting. * * * * * * * * * * * * * Mayor Neal announced the executive sessions, which were listed on the agenda as follows: 30. Executive session under Texas Government Code Section 551.087 for deliberations regarding economic development negotiations, with possible discussion and action related thereto in open session. 31. Executive session under Texas Government Code Section 551.071 regarding Gerardo Hernandez and Ana Hernandez, individually and as Representative of the Estate of Saria Hernandez, Deceased vs. City of Corpus Christi, City of Corpus Christi Police Department and Corpus Christi Police Officer Sergio Delgado, Cause No. 03-60985-1, in the County Court at Law No. 1, Nueces County, Texas, with possible discussion and action related thereto in open session. 32. Executive session under Texas Government Code Section 551.071 regarding the Nueces County - City of Corpus Christi Jail Use Agreement and the City's proposed Detention and Magistration Center, with possible discussion and action related thereto in open session. The Council went into executive session. The Council returned from executive session and the following motion was passed with the following vote: 31. MOTION NO. 2004-251 Motion authorizing the City Manager to settle Gerardo Hernandez and Ana Hernandez, Individually and as Representative of the Estate of Saria Hernandez, Deceased vs. City of Corpus Christi, et al; Cause No. 03-60985-1; for the sum of $100,000.00, subject to certification of funds. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly, and Scott were absent. * * * * * * * * * * * * * Mayor Neal referred to Item 17, and a motion was made, seconded and passed to open the Minutes - Regular Council Meeting June 29, 2004 - Page 15 public hearing on the proposed FY 2004-2005 operating budget. Mayor Neal called for public comment on each fund individually as follows: special revenue fund; debt service fund; enterprise funds; and the general fund. Regarding the utility fund, Mr. J.E. O'Brien, 4130 Pompano, spoke against the proposed utility rate increases in the budget. He noted that the 2003 CAFR showed that the city's utility system fund had in excess of $146,000,000 in investments, with over $72 million unreserved. Assistant City Manager Mark McDaniel replied that almost $29 million of the total number was comprised of the Choke Canyon debt reserve fund used to buy down costs in the water fund annually. He said the balance comprised five percent of total operating expenditures. In addition, Mr. McDaniel stated that the multi-year model for utility rate increases to fund capital projects called for a scheduled draw -down of the fund balance over ten years, although not below the 25 percent mark. Mr. Bill Kopecky, 3609 Topeka, asked for an update on any negotiations to reduce the Choke Canyon debt. Assistant City Manager Ron Massey reported that the result of the negotiations was that the city had its debt payment suspended for five years, but there were no changes to the overall payment. During that period, he said the city continued to collect as if it were paying the debt, which allowed the city to establish the Choke Canyon fund. City Manager Noe said he would provide a more detailed update. Regarding the general fund, Mr. O'Brien spoke in support of reinstating the city's internal audit department. He also commented that the budget public hearing was not held at a time certain this year, as it usually was. Finally, he said staff could always consider cutting expenditures rather than raising taxes. Mr. Kopecky spoke in support of the city's efforts to increase the general fund balance. He asserted that bond companies weigh the general fund balance more heavily than an artificial tax cap. He commented that the Council has stated that if the property tax revenues come in higher than the projected 6 percent, then the city would reduce the tax rate accordingly. He suggested that it might have been better to base the budget on a 5 percent tax rate, building in a small tax cut. He also questioned the industrial district revenue projections because these revenues were quite volatile. Mr. McDaniel replied that for the city's recent CO issue for the landfill, two insurance companies did not bid because they were not comfortable with the artificial tax cap. He also said the city probably paid more for the other insurance bids they did receive because of the tax cap. Regarding the industrial district revenues, he believed staff has addressed the fluctuations through the revised agreement. Mr. Chesney remarked that the city had made a number of reductions in expenditures to balance the budget. He also asked why the city had eliminated the internal audit department. City Manager Noe replied that the department was eliminated in 2000 as part of a massive reduction in city expenditures. He said the department was deemed too small to be truly effective, comprised of only a single auditor and one clerical support person. The City of San Antonio's internal audit department, on the other hand, had a staff of 15 to 20 accountants and support personnel. Mr. Kinnison spoke in support of reinstating the internal audit position, suggesting that the auditor could report directly to the City Council as in the City of Austin. Mr. Chesney asked for more information on the City of Austin's and the City of San Antonio's model. Mr. Kopecky stated that he felt the City of Corpus Christi had more departments than other comparable cities. He suggested that the city reorganize its departments to be more efficient. nutes - Regular Council Meeting June 29, 2004 - Page 16 Mr. Noyola asked if it would be possible to increase the funding for the Neighborhood Improvement Program. City Manager Noe replied that it would be difficult to increase the number of neighborhoods participating in the program not because of funding issues, but because it relies on intensive coordination efforts between various departments. He stated that adding more neighborhoods to the effort could stretch staff resources too thin. Mayor Neal stated that there were many cities across Texas that were not in as a good financial standing as Corpus Christi. He said the city made a number of difficult yet meaningful budget decisions in 1999-2000 that enabled the city to reach this level now, while still initiating an effort to bring employee salaries to market level. He said the Council has recognized that improving the city's quality of life will improve its economic conditions. He thanked Mr. McDaniel and staff, and also the Council for their efforts in achieving this feat considering the current economic climate. Mr. Noyola also thanked the citizens for supporting the city's efforts to move forward. A motion was made, seconded, and passed to close the public hearing. ************* Mayor Neal opened discussion on Item 27 regarding the issuance of Certificates of Obligation (CO) for solid waste facilities improvements. Mr. Mark Seale with M.E. Allison & Company, financial advisor to the city, reported that the rating agencies confirmed the city's underwriting ratings of A2, A+, and AA-. He said the rating letters were quite complimentary to the city and the administration. The insurance companies reviewed the rating letters, and the city received three bids out of five insurance companies. He noted that two companies decided not to bid because they were concerned about the city's artificial tax cap. He stated that the tax cap was a concern because the COS fall under the tax cap, and although they are expected to be self- supporting from solid waste revenues, the companies have to consider what would happen if they revenues came in below estimates for some reason. Under this scenario, the city would have to raise taxes and could hit the tax cap. Mr. Seale said the bonds were priced yesterday at a 20 -year level amortization, and a 4.79 percent interest cost. He said J.P. Morgan Chase was the lead underwriter, with Bank of America as co -manager. He said staff recommended approval of the issuance of the Certificates of Obligation. Mr. JeffLeuschel with McCall Parkhurst and Horton, bond counsel, stated that the ordinance reflected the terms of the agreements as described by Mr. Seale. Once the agreement was finalized, the bonds will close in about 30 days. Mayor Neal called for public comment. Mr. Bill Kopecky, 3609 Topeka, spoke regarding his concern that the Certificates of Obligations were not voter approved, and he felt solid waste should be treated more as an enterprise fund. City Secretary Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting June 29, 2004 - Page 17 27. ORDINANCE NO. Ordinance by the City Council of the City of Corpus Christi, Texas, providing for the issuance of $6,850,000 City of Corpus Christi, Texas, Combination Tax and Solid Waste Revenue Certificates of Obligation, Series 2004, and ordaining other matters relating to the subject. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly, and Scott were absent. ************* Mayor Neal deviated from the agenda, and referred to Item 21, an update on Solid Waste Services. Mr. Jeff Kaplan, solid waste services director, updated the Council on Phase III of the automation program. He said in August 2004, the remaining 21,000 customers would receive carts. There would be no changes to routes or schedules, and routes will continue to be serviced by rear - load equipment. He said the implementation of Phase III standardized the collection system for the city. He showed a map depicting the Phase III area. Mr. Kaplan discussed the public information campaign efforts. He said a mail -out was scheduled for the remaining 21,000 customers advising them of the automation process and the new green cart they would be receiving. He said informational brochures and door tags would also be delivered to all affected areas. Finally, he stated that a campaign kick-off would be held on August 9 with a press release and media announcements. Mr. Kaplan provided a recap of the final phase of the automation program. He said the final implementation brought the total number of accounts serviced to 75,000 residential and commercial customers. Eighteen total automated routes and eight total rear -load service routes would be serviced daily. The fleet would include 24 automated vehicles were used (six added in Phase III). He said hydraulic "tippers" have been retrofitted on the rear load fleet. During the automation process, Mr. Kaplan said 55 positions have been eliminated, and a six day schedule implemented. Finally, he said all yard waste would be co -mingled with residential waste. Mr. Kaplan reported that solid waste services would conduct an evaluation of the automated process in FY 2004-2005. He said they would evaluate volume management, container management, recycling statistics, and recycling consideration. Mr. Kaplan reviewed the recycling options presented last year. He noted that the existing program used a two-week schedule. Other considerations for discussion would be a reduced program of once a month, a pilot program of once a week, or a reduction to drop-off centers only. Mr. Kaplan addressed the new recycling pilot, headed by the Morningside Preservation Society. He said the pilot would target 204 residences in the Morningside neighborhood, bordered by Lawnview, Melrose, Santa Fe, and Texan Trail roads. The pilot program was scheduled for six months, kicking off next Saturday. He stated that the program was funded through a Council of Governments grant, and would include incentives for increased volume such as cash rewards. The Minutes - Regular Council Meeting June 29, 2004 - Page 18 slogan for the campaign was "We All Win When We Recycle". The program's success would be evaluated on the following measures: participation (number of homes); volume - total weight of bin with qualifying products; and compliance - amount of waste not recyclable. Finally, Mr. Kaplan provided an update on the brush division. He said the brush collection fleet was comprised of nine brush loaders (four of which are over seven years old), two self loaders, and 24 brush trucks (11 of which are over 10 years old). He said all brush crews operate on a ten hour day, six days a week. As a result, he reported a tremendous growth in volume and greater use of services, leading to an increase in tonnage, fuel and wear -and -tear on equipment. Mr. Kaplan referred to two graphs depicting the city tonnage history from FY 2001-02 to FY 2003-04 (estimated). He also referred to a chart illustrating the collected revenues from special pick-ups. Mr. Kaplan said the brush program would also be evaluated in FY 2004-05, focusing on fleet management, shared equipment opportunities, and shared manpower opportunities. The Council then asked a number of questions regarding worker safety and trash pick-up for the Crestmont area. The next presentation was Item 22, an update on the utility re-engineering effort. Assistant City Manager Ron Massey reviewed the last update regarding the implementation of MAXIMO, a computerized maintenance management system. He said MAXIMO was now "live" in water production (April 2002), wastewater treatment (August 2002), and gas, storm water, wastewater, collection, and water distribution divisions (October 2003). In addition, he said the re-engineering effort included the implementation of skill -based pay and more efficient use of resources. Mr. Massey then discussed the progress made citywide in the last six months. He reported that the Call Center went "live" with MAXIMO in June 2004. Currently, the city was preparing to go live in August in the street and solid waste services, park and recreation, and facility maintenance departments. Mr. Massey covered the six-month progress in utilities. He said they had implemented dispatcher cross -training, were tracking customer calls and response times in MAXIMO, and were continuously improving work management strategies and practices. He noted that the MAXIMO system has recorded an average of 3,000 calls per month. Of these calls, 50 percent are related to wastewater issues, 20 percent are water issues, 5 percent are stormwater issues, and 17 percent are gas issues. Mr. Massey reported that the utilities department was analyzing their work demands to identify cost savings opportunities. He stated, for example, that the water department received 4,147 customer service requests between January 2004 and May 2004, and approximately 50 percent of the calls were to report meter leaks. Of these calls, he said the results of responses indicated that only 1,151 were actual meter leaks and 998 were either private problems or no leaks. As a result, Mr. Massey said staff decided to modify the call taking procedure so the dispatcher would ask more questions to clarify the nature of the problem. Mr. Massey said the MAXIMO system was also useful in capturing the number of labor hours worked. He said this was important because the goal was to achieve 80 percent of labor hours for scheduled work, and 20 percent of labor hours for unplanned repairs, which the wastewater department achieved during the period of January 2004 through May 2004. Mr. Massey briefly addressed the ways MAXIMO tracked department costs. He pointed out Minutes - Regular Council Meeting June 29, 2004 - Page 19 that water department operation and maintenance costs were currently at 1995 levels. He also stated that water production real personnel costs were also down 32 percent from 1997, despite the fact that employee compensation had been increased and electric costs have increased. Mr. Massey stated that MAXIMO could also be used to determine baseline staffing needs for various departments. In the water department, for example, he said that based on the number of planned work and unplanned work hours per year, staffing levels would be optimal at 26 employees. Mr. Massey then briefly updated the Council on re-engineering efforts in the wastewater department. He said the wastewater plant and lift station controllable operation and maintenance costs were currently at 1995 levels. In addition, he reported that real personnel costs for the wastewater treatment plants and lift station had decreased by 16 percent from FY 1994-1995. Finally, he said the budgeted full-time employees (FTEs) in the wastewater plant and lift stations had decreased 28 percent since 1999-2000. In conclusion, Mr. Massey covered the next steps in the re-engineering program. In July, he said the parks maintenance and city facilities maintenance divisions would load the MAXIMO system. In August, he said streets and solid waste services, facility maintenance, and park and recreation would go live with the system. Council members then asked a number of questions. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 23 regarding professional services agreements and contracts for Internet online and telephone business services. Ms. Susan Cable, director of E - Government services, reported that the contracts would result in a number of new and expanded Internet online and phone services as follows: phone IVR bill presentment, account information and other business services for utility billing; building permits/inspections, code enforcement, business licenses, recreation registrations, and other small dollar, low-volume payment processes for various departments; and video streaming, virtual tours, web cams, and other e -media services. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 23.a. MOTION NO. 2004-243 Motion authorizing the City Manager or his designee to execute a supplement to the HTE, Inc. Software License and Services Agreement between SunGard HTE, Inc. of Lake Mary, Florida and City of Corpus Christi, Texas in the amount of $84,911 for software license fees, installation and configuration, Interactive Voice Response (IVR) interfaces, for Internet online bill payment, account information, permitting, and other business services for utility billing, building permits, code enforcement and business licenses. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly, and Scott were absent. Minutes - Regular Council Meeting June 29, 2004 - Page 20 23.b. MOTION NO. 2004-244 Motion authorizing the City Manager or his designee to execute a professional services agreement with Selectron Technologies, Inc., of Portland, Oregon in the amount of $117,800 for Interactive Voice Response Systems for bill payment, business services, information and faxing through telephone systems for utility billing and building permits; and informational 1VRs for City departments. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly, and Scott were absent. 23.c. MOTION NO. 2004-245 Motion authorizing the City Manager or his designee to execute a professional services agreement with Hamer Enterprises, Easy Access Division, of McAllen, Texas in the amount of a four percent user transaction fee for an Internet Based Payment System for recreation program registrations and other City business processes. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly, and Scott were absent. 23.d. MOTION NO. 2004-245 Motion authorizing the City Manager or his designee to execute a professional services contract with Quadrant Productions, of Corpus Christi, Texas in an amount not to exceed $40,000 for e -media production services, including video streaming, progressive downloads, VR panoramas, e -media server administration, and web cam installation and administration. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly, and Scott were absent. Mayor Neal opened discussion on Item 24 regarding the city's term life insurance carrier. Ms. Cynthia Garcia, director of human resources, reported that the city's current contract for city employee life insurance coverage expired on July 31, 2004. She said the city went out for bids in May and received fifteen proposals. Of these, six proposals were disqualified for being incomplete. She stated that staff was recommending Standard Life Insurance as the city's life insurance coverage. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting June 29, 2004 - Page 21 24. MOTION NO. 2004-247 Motion authorizing the City Manager to enter into an agreement with Standard Insurance Company for group term life insurance and accidental death and dismemberment insurance for City employees actively employed as of August 1, 2004. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly, and Scott were absent. Mayor Neal opened discussion on Item 25 regarding the city's annual independent audit contract. Ms. Constance P. Sanchez, assistant director of finance, reported that staff was recommending Collier Johnson & Woods to conduct the audit for an amount not to exceed $130,000. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 25. MOTION NO. 2004-248 Motion authorizing the City Manager or his designee to execute a contract with Collier, Johnson & Woods, of Corpus Christi, Texas for an amount not to exceed of $130,000 to perform the financial and compliance audit requirements for fiscal year 2004. The term of the contract shall be for one year with an option to extend for up to four additional one-year periods. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly, and Scott were absent. Mayor Neal opened discussion on Item 26 regarding a contract to provide actuarial auditing services to audit the most recent Corpus Christi Firefighters Pension Fund actuarial report. Mr. McDaniel said staff was recommending a full audit of the pension fund to establish a benchmark regarding the valuation of the fund. He said it would take approximately 12 weeks to complete and, depending on the results, it could lead to an adjustment in the city and/or fire contributions. In response to Mr. Kinnison's question, City Manager Noe stated that the board controlled the fund, and the city currently had no role other than to contribute dollars. He said part of the issue will be whether the board should set its own rules and benefit levels without the city's permission or involvement. Mayor Neal asked for public comment. Mr. R.J. Herschback provided a brief history of the firefighters pension fund. City Secretary Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting June 29, 2004 - Page 22 26. MOTION NO. 2004-249 Motion authorizing the City Manager or his designee to execute a contract with Gabriel, Roeder, Smith & Company, of Irving, Texas in the estimated amount of $32,000 to provide professional actuarial auditing services to audit the most recent Corpus Christi Fire Fighters Pension Fund actuarial report by providing a Level 1 "Full Replication Audit" and an Actuarial Assumption Review. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly, and Scott were absent. Mayor Neal opened discussion on Item 28 regarding the recommended termination of the Prince catering contract at Oso golf course and Gabe Lozano golf course. Assistant City Manager Margie Rose reported that staff had recently met with Mr. Mel Davis, owner, to discuss a number of concerns, most importantly a large financial obligation he owed the city. She said more than $18,000 was owed at that time, but Mr. Davis assured them it would be paid within 30 days. Staff sent Mr. Davis a letter confirming that the balance needed to be paid by May 31, and made numerous follow-up calls after that time but Mr. Davis did not return his calls. She said Mr. Davis did submit a payment of $7,000, but since he did not follow the appropriate protocol, staff was not aware of the payment until June I. In addition, he submitted another check for $4,500 today. However, Ms. Rose said Mr. Davis still owed $10,000 at this point. Ms. Rose reported other problems with the Prince catering contract, financial obligations notwithstanding, including customer service, product, and operating hours. Mr. Mel Davis, owner of Prince Catering, stated that he had submitted a letter in February asking the city to reduce his rent because golfer participation has declined. He said Ms. Rose and another staff member met with him to ask him to become current on his balance, or else they would have to terminate the contract and go out for bids again. He stated that he could not become current on his balance because of the low golfer participation rates. He said he had a good relationship with the golfers, and he personally had not heard of any complaints. Mr. Garrett asked about the types of complaints staff had received regarding Prince Catering. Mr. Chris Semtner, superintendent of support services for the park and recreation department, replied that the complaints included problems with the supply of product, opening late for business, customer service, and particularly poor communication between the owner and city administration. He said Mr. Davis had a history of not returning staffs phone calls. Mr. Noyola said he had never heard any golfers complain about Prince Catering. He did advise Mr. Davis, however, to return staffs phone calls. He asked what would happen if the contract was terminated. Ms. Rose replied that staff would open bids, and would place vending machines at the golf courses during the interim. Mr. Noyola was skeptical that the golfers would approve of this solution. He strongly encouraged staff to come to an agreement with Mr. Davis if possible. Ms. Rose replied that staff was not against reducing Mr. Davis's rent or bringing the matter to the Council for their consideration. She said staff had simply asked Mr. Davis to become current in his payments before they could take this action, and he had assured them at their meeting that he would become current in 30 days. Mr. Semtner added that Mr. Davis had a history of problems making Minutes - Regular Council Meeting June 29, 2004 - Page 23 payments since 2002. City Manager Noe pointed out that it was highly unusual for staff to ask for the termination of a contract, but Mr. Davis had left them with no other recourse because he had not followed through on his agreement and did not communicate with staff. Mr. Noyola expressed his concern that he was not informed about problems with the contract earlier. Nonetheless, he thought Mr. Davis's contract should be terminated in August if he did not become current on his account, and he advised Mr. Davis to better communicate with staff. Mr. Chesney agreed that Mr. Davis needed to return staffs phone calls. He thought, however, that staff should continue working with his request to restructure his payments because of the decreased golfer participation. Ms. Rose pointed out that staff had simply asked Mr. Davis to become current on his account before restructuring his payments. Mr. Chesney asked staff to give Mr. Davis 60 more days to become current, and then work on restructuring the payments. Mr. Kinnison commented that Mr. Davis had gotten behind on his payments in 2002 and 2003. He also stated that the Greens Committee has endorsed the termination of the contract as well. Thus, he said there seemed to be a great deal of dissatisfaction with the service in addition to the failure to meet his financial obligations. Mr. Chesney, Mr. Kinnison, Mr. Colmenero, and Mr. Noyola asked that a representative from the Greens Committee report to the Council on their concerns. Mr. Noyola also asked for a copy of the minutes from the Greens Committee meeting where the issue was discussed. Mr. Semtner clarified that the Greens Committee did not make a formal motion to terminate this contract. Mr. Kinnison made a motion to table Item 28 until July 13 to obtain more information from the Greens Committee, seconded by Mr. Noyola. He emphasized that Mr. Davis needed to become current on his account, stay current, and meet certain standards of performance. The motion passed unanimously (Cooper, Kelly, and Scott were absent). 28. TABLED UNTIL JULY 13, 2004 COidcaai0il ,Ci viCe, c City Mandsci ui 111S�CStguGc t0 GduGcl (lcnum atc) the fivc-ycai ay L /, tvvt� with Ii iuw (MJ'�) Catc,;nig a i the Uav til,at, 1 Muuuciyal Uv1I Uuuiac an tilt Ualic Lvnauv Ji..J01I Gcutci. Mayor Neal opened discussion on Item 29 regarding an amendment to the Coliseum lease with the Corpus Christi Rayz. City Manager Noe replied that this adjustment to the current lease with the Rayz, effective November 5, would provide for continued occupancy for Rayz at their expense, and requiring the city to provide 60 days notice to vacate the premises through May 1, 2005. There were no comments from the public. In response to Mr. Kinnison's question, City Manager Noe replied that the city would still bear the insurance costs for the full year. City Secretary Chapa polled the Council for their votes as follows: 29. MOTION NO. 2004-250 Minutes - Regular Council Meeting June 29, 2004 - Page 24 Motion authorizing the City Manager or his designee to execute an amendment to the Coliseum lease with WD Sports Texas, Inc. d/b/a Corpus Christi Rayz. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, and Noyola, voting "Aye"; Cooper, Kelly, and Scott were absent. Mayor Neal understood that the Rayz were going to reimburse the city for the cost of the ice making equipment, and he asked staff to investigate. * * * * * * * * * * * * * Mayor Neal called for the City Manager's report. City Manager Noe reported that there were 12 additional Bayfront Master Plan public meetings scheduled, some at various board and committee meetings. He said the dates were posted on the city's website for those interested. He also commented that the new Impaired Driver Mobilization Program began yesterday and would run through July 6. The parking plaza dedication would be taking place tomorrow at the airport. He also said the annual drinking water quality report was distributed last week. Finally, he said the summer reading program was a big hit, and he thanked the Corpus Christi Hooks for their "Hooked on Reading" program. He reported that the following items were scheduled to appear on the July 13 agenda: first reading of the budget; public hearing on city charter amendments; and briefing on the anti -littering campaign. Mayor Neal called for Council concerns and reports. Mr. Kinnison reported on a constituent complaint about a huge billboard put up by a new bank on Everhart and Staples. He said he did not want to see signage like this anywhere else in the city, and he asked staff to continue pursuing more stringent regulations on signage. City Manager Noe replied that staff would be including stricter regulations on signage in the new Unified Development Code, which would be coming to the Council soon. There being no further business to come before the Council, Mayor Neal adjourned the Council meeting at 3:45 p.m. on June 29, 2004. * * * * * * * * * * * * *