HomeMy WebLinkAboutMinutes City Council - 06/28/2005I 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 June 28, 2005, which were approved by the
City Council on July 12, 2005.
WITNESSETH MY HAND AND SEAL, on this the 12th day of July, 2005.
Armando Chapa
City Secretary
SEAL
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Council Meeting
June 28, 2005 - 10:00 a.m.
PRESENT
Mayor Henry Garrett
Mayor Pro Tem Brent Chesney
Council Members:
Jerry Garcia
Rex Kinnison
Bill Kelly
John E. Marez
Jesse Noyola
Mark Scott
ABSENT
Melody Cooper
City Staff:
City Manager George K. Noe
City Attorney Mary Kay Fischer
City Secretary Armando Chapa
Mayor Garrett called the meeting to order in the Council Chambers of City Hall.
The invocation was delivered by Pastor Kevin Jennings of Mt. Olive Lutheran Church and
the Pledge of Allegiance to the United States flag was led by Council Member Scott.
Mayor Garrett called for approval of the minutes of the regular Council meeting of June 21,
2005. A motion was made and passed to approve the minutes as presented.
* * * * * * * * * * * * *
Mayor Garrett deviated from the agenda, and referred to Item 26, a presentation on the Fourth
of July Big Bang Celebration. Mr. Vic Menard, Co -Chairman of the Mayor's Planning Committee,
introduced Ms. Shelley Parks, H -E -B Public Affairs representative, who presented the city with a
$25,000 check to sponsor the event's 18th annual fireworks display.
Ms. Sharon Emerson with the Buccaneer Commission updated the Council on the Stars and
Stripes Parade. She said the parade would begin at 6:00 p.m. Due to the downtown area
construction, she noted the parade route would be reversed this year, beginning at the Memorial
Coliseum, proceeding down the water side of Shoreline Boulevard, and ending on Palo Alto Street.
She advised all parade goers that they could not sit on the curb along the T -Heads and L -Heads
because of the narrow roadway in that area. She invited everyone to attend the parade.
Ms. Emerson also reported on a number of other events taking place earlier in the day,
including a bayfront run, a veteran's patriotic ceremony, and a search and rescue demonstration by
the U.S. Coast Guard.
Mayor Garrett thanked the Buccaraders and H -E -B for supporting the event.
* * * * * * * * * * * * *
Minutes - Regular Council Meeting
June 28, 2005 - Page 2
Mayor Garrett called for consideration of the consent agenda (Items 2-20). City Secretary
Chapa announced that Council Member Noyola was abstaining from the vote and discussion on Item
20, and Council Member Kelly was abstaining from the vote and discussion on Item 12. There were
no comments from the public. Council members requested that Items 14, 15, 16, and 18 be pulled
for individual consideration. A motion was made and passed to approve Items 2 through 20,
constituting the consent agenda, except for Items 14, 15, 16, and 18, which were pulled for
individual consideration. City Secretary Chapa polled the Council for their votes as follows:
MOTION NO. 2005-197
Motion approving a supply agreement with Omni Elevator, of Corpus Christi, Texas, for
elevator and escalator maintenance services in accordance with Bid Invitation No. BI -0050-
05, based on low total bid, for a sixty -month expenditure of $444,540 of which $5,430 is
budgeted for FY 2004-2005. The term of the supply agreement will be sixty months with
an option to extend for up to two additional twelve-month periods subject to the approval of
the supplier and the City Manager or his designee. The service will be administered by
Facilities Management. Funds have been requested by the various using departments in FY
2005-2006.
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
MOTION NO. 2005-198
Motion approving a supply agreement with Koch Material, of Corpus Christi, Texas for
emulsion oil in accordance with Bid Invitation No. BI -0112-05, based on only bid, for an
estimated annual expenditure of $50,950 of which $4,245.83 is for FY 2004-2005. The term
of the contract will be for twelve months with an option to extend for up to two additional
twelve-month periods subject to the approval of the supplier and the City Manager or his
designee. This material is used by Street Services for maintenance of City streets. Funds
have been requested by Street Services for FY 2005-2006.
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
MOTION NO. 2005-199
Motion approving the purchase of one prisoner transport vehicle from Philpott Motors, of
Port Neches, Texas for the total amount of $31,600.75. The award is based on the City's
Cooperative Purchasing Agreement with the Houston Galveston Area Council of
Governments (HGAC). This van is an addition to the fleet. Funding is available from the
FY 2004-2005 Police Grants Fund.
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
Minutes - Regular Council Meeting
June 28, 2005 - Page 3
5. MOTION NO. 2005-200
Motion approving a supply agreement with EGW Utilities, Inc., of Carrollton, Texas for
approximately 143,000 feet of polyethylene pipe and 5,080 fittings in accordance with Bid
Invitation No. BI -0113-05 based on low bid for an estimated annual expenditure of
$147,809.60 of which $12,317.47 is budgeted for FY 2004-2005. The term of the contract
will be for twelve months with an option to extend for up to two additional twelve-month
periods subject to the approval of the supplier and the City Manager or his designee. Funds
have been requested by the Gas Department in FY 2005-2006.
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
6. MOTION NO. 2005-201
Motion approving supply agreements with the following companies for the following
amounts in accordance with the Coastal Bend Council of Governments Bid Invitation No.
CBCOG-05-4 for food items which include canned and frozen fruits and vegetables, meats
and condiments for an estimated six month expenditure of $122,765.01 of which $20,460.84
is budgeted for FY 2004-2005. The terms of the contracts shall be for six months with an
option to extend for up to three additional months subject to the approval of the Coastal Bend
Council of Governments, the suppliers, and the City Manager or his designee. Funds have
been requested by Senior Community Services in FY 2005-2006.
Ben E. Keith LaBatt Food Service PFG
San Antonio, TX Corpus Christi, TX Victoria, TX
42 Items 115 Items 67 Items
$20,501.33 $50,042.27 $52,221.41
Grand Total: $122,765.01
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
7. MOTION NO. 2005-202
Motion approving the purchase of four (4) pickup trucks from Access Ford, Ltd., of Corpus
Christi, Texas in accordance with Bid Invitation No. BI -0126-05, based on low bid for a total
amount of $74,636. The vehicles will be purchased for the Fire Department. All four of the
vehicles are replacements to the fleet. Funding is available from the FY 2004-2005 Capital
Outlay Budget in the General Fund.
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
Minutes - Regular Council Meeting
June 28, 2005 - Page 4
8. MOTION NO. 2005-203
Motion approving the purchase of twenty-two (22) automated external defibrillator sets from
Cardiac Science, of Palatine, Illinois for a total amount of $41,090.50. The automated
external defibrillator sets will be used by the Fire Department. Funds have been budgeted
by the Fire Department in FY 2004-2005.
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
MOTION NO. 2005-204
Motion approving a supply agreement with Allstates Coatings Company, of Gladewater,
Texas for approximately 21,250 gallons of pavement marking paint in accordance with Bid
Invitation No. BI -0103-05 based on low total bid for an estimated annual expenditure of
$118,990 of which $13,729.56 is budgeted in FY 2004-2005. The term of the supply
agreement will be for twelve months with an option to extend for up to two additional
twelve -months periods, subject to the approval of the supplier and the City Manager or his
designee. Funds have been requested by Street Services for FY 2005-2006.
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
10.a. RESOLUTION NO. 026313
Resolution authorizing the City Manager or his designee to accept a Coastal Management
Program, Cycle 9 grant from the Texas General Land Office in the amount of $15,000 for
a Bay Debris Feasibility Study in Corpus Christi, Texas, with a City match of $15,000 from
No. 3270 Seawall Capital Improvement Program Fund and a total project cost of $30,000.
The foregoing resolution was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
10.b. ORDINANCE NO. 026314
Ordinance appropriating a $15,000 Coastal Management Program, Cycle 9 grant from the
Texas General Land Office in the No. 1058 Marina Grants Fund for a Bay Debris Feasibility
Study in Corpus Christi, Texas.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting
"Aye"; Cooper was absent.
Minutes - Regular Council Meeting
June 28, 2005 - Page 5
11. MOTION NO. 2005-205
Motion authorizing the City Manager or his designee to execute Amendment No. 4 to the
Contract for Professional Services with LNV Engineering, of Corpus Christi, Texas in the
amount of $199,431 for a total re -stated fee of $1,179,650 on the Water System Interactive
Hydraulic Model and Analysis Project for the Up River Road Water Transmission Line from
Dona to 1,000- feet east of Navigation.
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
1 2.a. ORDINANCE NO. 026315
Ordinance appropriating $584,063.48 from unappropriated interest earnings and
unappropriated miscellaneous revenue in the Convention Center 2002 Capital Improvement
Program Fund No. 3181 for Bayfront Convention Center Air Handler Replacement, Phase
1 Project; amending FY 2004-2005 Capital Budget adopted by Ordinance No. 026188 by
increasing appropriations by $584,063.48.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Garrett, Chesney, Garcia, Kinnison, Marez, Noyola, and Scott, voting "Aye";
Cooper was absent; Kelly abstained.
12.b. MOTION NO. 2006-206
Motion authorizing the City Manager or his designee to execute a construction contract with
Malek, Inc., of Corpus Christi, Texas in the amount of $395,000 for the Bayfront Convention
Center Air Handler Replacement, Phase 1.
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent; Kelly
abstained.
13. MOTION NO. 2005-207
Motion authorizing the City Manager or his designee to execute Change Order No. 5 to a
construction contract with Bay, Ltd., of Corpus Christi, Texas in the amount of $135,416.56
for the Laguna Shores Road Reconstruction Project from Mediterranean to Caribbean.
(BOND ISSUE 2000)
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
Minutes - Regular Council Meeting
June 28, 2005 - Page 6
17.a. ORDINANCE NO. 026316
Ordinance rescinding Ordinance No. 026247 which appropriated $402,233.80 from the
unappropriated interest earnings from Street 2000 Capital Improvement Program Fund
3411B and appropriated $202,169.13 from the unappropriated interest earnings from Street
2001 Capital Improvement Program Fund 3540 for the Cimarron Boulevard Improvements
Project, Phases 1 and 2; amended Capital Budget adopted by Ordinance No. 026188 by
increasing appropriations by $604,402.93.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting
"Aye"; Cooper was absent.
17.b. ORDINANCE NO. 026317
Ordinance rescinding Ordinance No. 026248 which appropriated $87,045.36 from the
unappropriated miscellaneous revenues from Street Capital Improvement Program Fund
3530, appropriated $201,753.69 from City Hall Capital Improvement Program Fund 3160
and transferred to and appropriated in Street Capital Improvement Program Fund 3530 for
the Doddridge Street Improvement Project; amended Capital Budget adopted by Ordinance
No. 026188 by increasing appropriations by $490,552.74.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting
"Aye"; Cooper was absent.
I 7.c. ORDINANCE NO. 026318
Ordinance rescinding Ordinance No. 026249 which appropriated $536,350 from City Hall
Capital Improvement Program Fund 3160, transferred to and appropriated in Street Capital
Improvement Program Fund 3530 for the Neighborhood Street Reconstruction Project;
amended Capital Budget adopted by Ordinance No. 026188 by increasing appropriations by
$1,072,700.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting
"Aye"; Cooper was absent.
Minutes - Regular Council Meeting
June 28, 2005 - Page 7
17.d. ORDINANCE NO. 026319
Ordinance rescinding Ordinance No. 026262 which appropriated $196,385 from City Hall
Bond Fund 3160, transferred to and appropriated in Library Capital Improvement Program
Fund 3120 for the Northwest Library Expansion; amended FY 2004-2005 Capital Budget
adopted by Ordinance No. 026188 by increasing appropriations by $392,770.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting
"Aye"; Cooper was absent.
17.e. ORDINANCE NO. 026320
Ordinance rescinding Ordinance No. 026276 which appropriated $423,830.30 from City Hall
Capital Improvement Fund 3160, transferred to and appropriated in Street Capital
Improvement Program Fund 3530 for the Up River Road Street Improvement Project;
amended FY 2004-2005 Capital Budget adopted by Ordinance No. 026188 by increasing
appropriations by $847,660.60.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Garrett. Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting
"Aye"; Cooper was absent.
17.1: ORDINANCE NO. 026321
Ordinance rescinding Ordinance No. 026284 which appropriated $298,809 from the
unappropriated miscellaneous revenues from Water Capital Improvement Program Fund
4080; and appropriated and approved the transfer of $298,809 from Water Capital
Improvement Program Fund 4080 into Street Capital Improvement Project Fund 3530 for
the Greenwood Drive, Phase 1 Street Improvement Program, amended FY 2004-2005
Capital Budget adopted by Ordinance No. 026188 by increasing appropriations by $597,618.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting
"Aye"; Cooper was absent.
Minutes - Regular Council Meeting
June 28, 2005 - Page 8
1 7.g. ORDINANCE NO. 026322
Ordinance rescinding Ordinance No. 026285 which appropriated $423,980 from the
unappropriated miscellaneous revenues from Water Capital Improvement Program Fund
4080; and appropriated and approved the transfer of $423,980 from Water Capital
Improvement Program Fund 4080 into Street Capital Improvement Program Fund 3530 for
the Laguna Shores Road Street Improvement Project; amended FY 2004-2005 Capital
Budget adopted by Ordinance No. 026188 by increasing appropriations by $847,960.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Garrett, Chesney, Garcia, Kelly, Kirmison, Marez, Noyola, and Scott, voting
"Aye"; Cooper was absent.
17.h. ORDINANCE NO. 026323
Ordinance rescinding Ordinance No. 026286 which appropriated and approved the transfer
of $173,502 from the unappropriated interest earnings in the Water Capital Improvement
Program Fund 4084 to and appropriated in the Street Capital Improvement Program Fund
3530 for the Cliff Maus Road Improvements Project Phases 2 and 3; amended FY 2004-2005
Capital Budget adopted by Ordinance No. 026188 by increasing appropriations by $347,004.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting
"Aye"; Cooper was absent.
19.a. MOTION NO. 2005-211
Motion approving the Transmission and Grid Main Construction and Reimbursement
Agreement with Yorktown Oso Joint Venture, owner and developer of Rancho Vista Unit
1 subdivision located east of Rodd Field Road south of Yorktown Boulevard for the
installation of 740 linear feet of a 12 -inch PVC water grid main.
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
19.b. ORDINANCE NO. 026325
Ordinance appropriating $75,232.80 from the Arterial Transmission and Grid Main Trust
Fund No. 4030-540450 to pay developer reimbursement request for the installation of 740
linear feet of a 12 -inch PVC water grid main to develop Rancho Vista Unit 1 Subdivision.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting
"Aye"; Cooper was absent.
Minutes - Regular Council Meeting
June 28, 2005 - Page 9
20. FIRST READING ORDINANCE
Authorizing the City Manager or his designee to execute a lease with the United States
Department of Transportation, Federal Aviation Administration, in consideration of
operation and maintenance of Outer Marker facilities from October 1, 2005 through
September 30, 2015.
The foregoing ordinance was passed and approved on its first reading with the following
vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, and Scott, voting "Aye"; Cooper was
absent; Noyola abstained.
Mayor Garrett opened discussion on Item 14 regarding the Horne Road Street Reconstruction
Project. Mr. Garcia stated he had the same concern regarding Items 14 and 15. Regarding the Horne
Road Street Reconstruction project, he asked why the project had experienced so many delays. City
Engineer Angel Escobar reported that the city had achieved savings on other Bond 2000 projects
which they were able to apply to the Horne Road project. He said today's change order, affecting
Horne Road from Kostoryz Road to Ayers Street, would make the road more driveable by creating
better transitions between side streets. Mr. Garcia stated he had understood that increased costs for
asphalt and concrete may have caused the delays, but it appeared this was not the case. Mr. Escobar
answered affirmatively.
Mr. Garcia asked for the estimated completion date for the project. Mr. Escobar replied the
estimated completion date was August 2005. City Secretary Chapa polled the Council for their votes
as follows:
14. MOTION NO. 2005-208
Motion authorizing the City Manager or his designee to execute Change Order No. 7 to the
construction contract with Haas -Anderson Construction, Ltd., of Corpus Christi, Texas in
the amount of $84,290 for the Home Road Street Reconstruction Project from Ayers to
Kostoryz. (BOND ISSUE 2000)
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
Mayor Garrett opened discussion on Item 15 regarding a contract for Project Management
Services related to Bond 2004 projects. Mr. Garcia stated a number of subcontractors bidding for
these projects had expressed concern about the services of the Construction Manager (CM),
Anderson Group Construction Management. He felt uncomfortable with the price increases on bids,
and asked if staff had noticed any correlation between price increases and the CM for the project.
Assistant City Manager Ron Massey replied negatively. He added that the use of Construction
Management firms had enabled staff to manage all the CIP projects by extending city staff. These
services included project management and/or construction and inspection. He stressed that all of the
projects were managed by Mr. Escobar and in-house engineering staff, and some of the field work
was done by outside firms. He said Mr. Escobar was addressing issues raised by the subcontractors,
hut stated that some concerns did not reach him. Mr. Escobar stated he was familiar with the
Minutes - Regular Council Meeting
June 28, 2005 - Page 10
subcontractors' concerns, and was trying to correct them. Mr. Massey added that staff considered
the Construction Management to be an extension of city staff; thus, if there were problems with the
CMs, then it was city staff's responsibility to address it. He asked the subcontractors to bring their
concerns directly to him and Mr. Escobar so they could be addressed.
In response to Mr. Noyola, Mr. Massey said the CMs provide technical information (e.g.
pricing) in support of staffs decision making. Mr. Massey added that the cost for Construction
Management services was between one or two percent of the actual bond expenditures. For the
money, he said the CMs bring expertise that it would hard for the city to find in the workforce. He
also stated the bond projects were short-term projects (1-2 years) and it would be difficult to hire
individuals to serve during a temporary timeframe.
Mr. Scott stated the subcontractors had also contacted him with their concerns. He felt there
was an internal bureaucracy that inhibited the subcontractor's ability to complete the work on time.
He said the CMs were useful in streamlining the process so the work would be completed on a timely
basis, ultimately keeping costs down. Mr. Massey pointed out that a good design was also a critical
factor in determining whether a project would be completed on time.
Mayor Garrett asked what staff did when the work was unsatisfactory, using the Gollihar
Road project as a case in point. Mr. Escobar stated staff tried to resolve the issues by talking with
the inspector and making the necessary repairs before accepting the project. Mayor Garrett
emphasized that the city needed to concentrate on quality work, which he believed the city was not
getting at this point. If more money needed to be expended to get quality work, then he felt it was
worth it. City Manager Noe replied he did not feel the city accepted or tolerated substandard work.
He said there was a process involved to address problems with a project, especially when under
warranty. He said virtually every project had a number of sections that had to be reworked and
repaired by the contractor because of the nature of the work. Mayor Garrett reiterated that the city
should focus on obtaining quality work from contractors. City Secretary Chapa polled the Council
for their votes as follows:
15. MOTION NO. 2005-209
Motion authorizing the City Manager or his designee to execute a Contract for Project
Management Services in the amount of $1,158,000 with Anderson Group Construction
Management, Inc., of Corpus Christi, Texas for various Capital Improvement Projects
associated with the 2004 Bond Election; subject to availability of funds.
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
Mayor Garrett opened discussion on Item 16 regarding the Marina Boater's Facility project.
Mr. Garcia stated he had been contacted about regarding concerns about the way the bid process was
conducted. Mr. Escobar replied he opened all the bids for the city to ensure that the bidding process
was consistent. He explained what staff looked for in a bid, including the bid bond, and power of
attorney, and acknowledgment of addenda. During this particular bid process, he said KJM
Commercial, who ended up being the low bidder, indicated on their form that they had not received
Minutes - Regular Council Meeting
June 28, 2005 - Page 11
the acknowledgment of addenda. Mr. Escobar stated engineering staff consulted the City Attorney's
Office to determine whether the bid should be considered non-responsive, which would disqualify
the bid, or irregular. He said he asked a representative from the company to verify that they had not
acknowledged the receipt of the addenda. In this case, he said a woman came forward and said she
was not sure, but she would call and check. Mr. Escobar stated staff, after consulting with the City
Attorney's Office, declared the bid an irregular bid, and then proceeded reading the other bids. The
KJM representative stepped out to make the call, and then came back in and said they had received
the addenda. Later that afternoon, Mr. Escobar stated staff received a letter from KJM stating they
had received the addenda but had failed to note it on the bid. They said the price did include the
work.
In response to Mr. Noyola's question, Mr. Escobar said bid irregularities occurred on a
frequent basis, which was why staff made it a point to consult with the City Attorney's Office. Mr.
Noyola stated he had received information showing that KJM Commercial's bid was the third bid
to be read. At this point, he said KJM's representative had already heard the prices for two bids
before making the phone call regarding the acknowledgment of addenda. Thus, he said it was
suspicious that the company ended up with the low bid because she may have let her company know
the prices of the first two bids so they could decide whether to continue with the bid or not. Mr.
Escobar agreed, but said their bid was still declared irregular. Mr. Noyola pointed out the second
lowest bidder was already doing the work on the project for the city, while the low bidder had never
done business with the city.
Mr. Noyola understood there were companies protesting the bid. Mr. Escobar answered
affirmatively, saying the second bidder, CamRett Construction, and the third bidder, SalCon
Construction, were contesting any award to the first or second bidder. Mr. Noyola asked what would
become of the protest if the Council were to approve the low bid today. City Manager Noe replied
the outcome of the protest was determined by the Council rather than any other authority. Mr.
Escobar added staff did not feel there was sufficient justification to keep them from recommending
award to the lowest bidder. Thus, he said staff recommended that the Council waive the irregularity
in the lowest bid. However, if the Council chose not to waive the irregularity, then they could award
the bid to the second lowest bidder to avoid re -bidding the project.
Mr. Kelly stated it was important to use the lowest bidder that could produce a quality project
to save taxpayers money. He said his only concern was the integrity of the bidding process itself.
At the time the letter was sent, Mr. Kelly asked if KJM knew what all the bid prices were. Mr.
Escobar answered affirmatively. Mr. Kelly stated that it was possible then that KJM was bidding
on a smaller job but then decided to take the job even with the extra work. Mr. Escobar replied
affirmatively, saying staff was looking at the bidding process and the documentation requested to
clarify what constitutes a reject, non-responsive or irregular bids to address this in the future. In
response to Mr. Kelly's question, Mr. Escobar replied CamRett, the second lowest bidder, did have
a mistake in the bid bond wording, but not to the extent where it was declared an irregular bid.
Mr. Noyola made a motion to not waive the irregular bid submitted by the lowest bidder and
to award the bid to the second lowest bidder instead, seconded by Mr. Garcia. City Secretary Chapa
polled the Council for their votes on Mr. Noyola's motion to amend as follows: Garrett, Garcia,
Marez, and Noyola, voting "Aye"; Chesney, Kelly, Kinnison, and Scott, voting "No"; Cooper was
Minutes - Regular Council Meeting
June 28, 2005 - Page 12
absent. The motion to amend failed.
City Secretary Chapa polled the Council for their votes on Item 16 as presented as follows:
16. MOTION NO. 2005-210
Motion authorizing the City Manager or his designee to execute a construction contract with
KJM Commercial, Inc. of Corpus Christi, Texas in the amount of $471,600 for the Corpus
Christi Marina Development Project (Peoples Street T-1-lead)/Marina Boater's Facility.
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, and Scott, voting "Aye"; Noyola, voting "No"; Cooper was
absent.
Mayor Garrett opened discussion on Item 18 regarding a lease for a food service operation,
Carson's Deli and Catering, in Heritage Park. Mr. Marez noted there was only one response to the
RFP issued by staff. He asked if staff had been approached with any other ideas on how to utilize
the buildings in Heritage Park. Director of Parks and Recreation Sally Gavlik replied the city was
making repairs to the McCampbell House in preparation to issue an RFP to solicit retail uses in this
building on the first floor. She said the second floor of the house was being used for office space.
Mr. Marez asked for more information on Carson's Deli. Mr. Gustavo Valadez Ortiz stated Mr.
Brian Carson had been the executive chef for the Republic of Texas for many years. He left to open
his own deli on the south side which has been in business for about a year. City Secretary Chapa
polled the Council for their votes as follows:
18. ORDINANCE NO. 026324
Ordinance authorizing the City Manager or his designee to execute a five-year lease with
Brian Carson, doing business as Carson's Deli and Catering, for the use of Merriman-Bobys
House in Heritage Park. to operate as a food service operation, in consideration of monthly
payment of greater of 10% of monthly gross sales less sales tax or minimum monthly rental
fee of $500.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting
"Aye"; Cooper was absent.
* * * * * * * * * * * * *
Mayor Garrett referred to Item 21.a., and a motion was made, seconded and passed to open
the public hearing on the following alley closure:
21.a. Public hearing to consider abandoning and vacating 8,283.77 -square feet of a 15 -foot wide
alley right-of-way between Lots 1-11 and 12-22, Block IX, Ocean View Addition (between
Elizabeth Street and Ayers Street, west of Third Street).
Minutes - Regular Council Meeting
June 28, 2005 - Page 13
No one spoke in opposition to the alley closure. A motion was made, seconded, and passed
to close the public hearing. City Secretary Chapa polled the Council for their votes as follows:
21.b. ORDINANCE NO. 026326
Ordinance abandoning and vacating 8,283.77 -square feet ofa 15 -foot wide alley right-of-way
between Lots 1-11 and 12-22, Block IX, Ocean View Addition (between Elizabeth Street and
Ayers Street, west of Third Street); subject to owner's compliance with the specified
conditions.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting
"Aye"; Cooper was absent.
* * * * * * * * * * * * *
Mayor Garrett opened discussion on Item 22 regarding an appeal by SDI Realty of a
Development Services department decision denying multiple driveway accesses on Airline Road for
a proposed development located at 1502 Airline Road. Director of Development Services Barbara
Bailey Holly explained during the development of the Lowe's shopping center site on Airline Road
and South Padre Island Drive (SPID), two main concerns arose regarding access management and
drainage. She said staff discussed the access management issue with the Duplantis Group, Lowe's
engineering firm, and it was concluded that two driveways would be allowed from Airline Road and
two from Williams Drive to serve the entire Lowe's development. Subsequently, in January 2005,
she reported the Texas Department of Transportation (TxDOT) issued a permit for driveway access
to the SPID Frontage Road limited to one access point.
Ms. Holly stated Lowe's then sold a portion of their property, located on the corner of Airline
and SPID (Shannon Middle School Tract, Block 1, Lots, 2, 3 and 4), to SDI Realty which prompted
the submittal of a re -plat for this property. Staff, in its comments to the Planning Commission on
December 1, 2004, recommended that no additional driveways be permitted from Lot 4 to Airline
Road consistent with the earlier negotiations; rather, it was thought that the properties would be
accessed internally from the Lowe's site. Subsequently, in May 2005, SDI Realty submitted a
commercial construction plan for the Padre Commons Plaza development indicating two additional
driveways on Airline Road. In further discussions, she said staff then allowed one additional
driveway (right -in and right -out) at the southern edge of Lot 4 on Airline Drive.
Ms. Holly explained why staff was opposed to the additional driveways on Airline Road.
She said previously, the traffic volumes on Airline Drive were low, so driveways near the
intersection were not an issue. As traffic volumes have increased over the years, she said the
location and spacing of driveways becomes more important because of safety issues. Rear -end
collisions, side swipes, and left -turn vehicle collisions are more prevalent when closely spaced heavy
traffic. Eventually, she said raised medians would be needed to address the safety issues in the long
term.
Ms. Holly stated staff was undertaking an ongoing study of access management issues
Minutes - Regular Council Meeting
June 28, 2005 - Page 14
throughout the city, most recently on Everhart Road. She briefly mentioned a number of findings
in the study, including the need to follow established roadway hierarchy; limit conflict points;
providing spacing between conflict points; provide turn lanes; and create side street connectivity.
She said staffs goal was to avoid making these same mistakes on Airline Road.
Ms. Holly stated that Development Services's goal was to safeguard safe and adequate access,
balancing the business access needs with commuter traffic safety. She said studies conducted of
businesses within areas where access management had been implemented show that improved
driveway spacing and design, alternative access and installation of nontraversable medians have
virtually no adverse impact on business activity. She said inadequate access management can cause
a 10 percent reduction in average travel speeds, possibly leading to a 20 percent business loss of its
market area.
Ms. Holly reported that when Lowe's sold the corner lot to SDI Realty, they sold the property
with the understanding that SDI would have to comply with a "non -compete" clause if they wished
to gain access to their property through the Lowe's site. A "non -compete" clause would not allow
SDI tenants to sell anything that Lowe's currently sells. SDI does not wish to be limited in this way,
and thus has chosen not to use the access point of the SPID Frontage Road. SDI now has to obtain
access to Airline Road and SPID on their own, which placed them in a difficult position.
Ms. Holly answered the Council's questions regarding the access management issues in the
subject property. Mr. Scott stated he did not feel SDI's request for two driveways on Airline Road
would be significantly unsafe, with the exception of allowing for left-hand turns into the subject
property. He questioned why staff wasn't addressing the left-hand turn issue now, saying this was
a bigger safety issue than an extra curb cut. Assistant City Manager Ron Massey replied that the left-
hand turn into the subject property off of Airline was not a problem right now.
Mr. Chesney spoke against staffs recommendation, stating that since SDI was not able to get
access to their property off of SPID, the city should help the developer by providing one more access
point on Airline Road. He also felt the city should eliminate the ability to make a left-hand turn into
the subject property off of Airline Road. Mr. Kevin St. Jacques, city's traffic engineering consultant,
stated the proposed second driveway was located in the right -turn lane, and it was not advisable to
place a driveway in this area. Ms. Bailey added that limiting the access points would actually
improve the access to the building. Mr. Chesney suggested the city could control the second access
point by placing barriers up to ensure that motorists to prohibit left-hand turns.
Mr. Kinnison asked how long SDI had known about the access management issues regarding
the subject property. Ms. Holly replied that Lowe's engineering firm, the Duplantis Group, was the
same firm used by SDI Realty, so they should have know about issues from the beginning.
In response to Mr. Kelly's question, Ms. Holly stated at the Planning Commission meeting,
SDI stated that if they were to use the driveway on the eastern edge of the subject property, then
Lowe's would not allow SDI's tenants to sell anything that Lowe's sells.
Mr. Scott noted there were three existing curb cuts near the corner lot on Airline Road, and
staff was recommending the removal of all except the one on the southern edge of Lot 4. He
Minutes - Regular Council Meeting
June 28, 2005 - Page 15
suggested a compromise in which a second curb cut on Airline Road could be situated between the
two existing curb cuts slated for removal.
Mr. Noyola expressed concern that Lowe's could dictate the use of the subject property even
after it was sold by making private restrictions on access. He said he personally would not have
purchased the subject property under those conditions. Mr. Garcia asked if the engineering firm
working on the plat would have known these conditions were in place. Ms. Holly replied
affirmatively.
Mayor Garrett asked for public comment. Mr. Michael Mora, SDI Realty construction
manager, and Mr. Matt Newchurch, civil engineer, explained that according to their interpretation
of Section X.c of the city's Driveway Design and Construction Standards manual, the two proposed
driveways were allowable. In fact, Mr. Mora said the amount of frontage he had assembled entitled
them to three, full -access curb cuts. He agreed that left-hand turns onto Airline Road should be
prohibited.
City Engineer Angel Escobar clarified that Section X.c of the city's Driveway Design and
Construction Standards manual referred to a different situation. Assistant City Manager Massey
added the section regarding driveway restrictions prohibited driveway access in a channelized turn
lane.
Mr. Chesney spoke against staffs access management plan for this property, saying it was
not pro -development.
Mr. Charlie Shears, owner of SDI Realty, stated Lowe's had not informed them that the
subject property had restricted access. He said SDI Realty prefers not to buy property with
restrictions because it limits the type of retailers they can attract. He requested two right -in, and two
right -out driveways with access to Airline Road. He said access to SPID didn't matter to them. Mr.
Noe stated SDI was not interested in access to SPID because there was no practical way for them to
gain access without incurring restrictions from Lowe's.
Mr. Kelly asked Mr. Shears if he would agree to shifting the two driveways he was requesting
further to the south. Mr. Shears replied affirmatively, as long as he was able to obtain two right -ins
and two right -outs.
Mr. Scott and Mr. Kinnison were skeptical that SDI Realty was unaware of the restrictions
in place regarding access to the subject property when they purchased the property. Mr. Shears
stated SDI was aware that the city and Lowe's had discussions regarding access regarding their
property, but were unaware of any access issues related to the this particular tract of land. He said
the lot, formerly the site of a Chinese food restaurant, was not part of the Lowe's acquisition; SDI
acquired the property independently. The site had three access points when they purchased it. Ms.
Holly stated SDI had to negotiate with Lowe's to acquire property from them to expand their
acquisition, creating one large lot. She said SDI should have known about the restrictions.
Mr. Marez spoke in support of granting SDI Realty's request for two driveways, and
advocated that the driveways be as far south as possible to keep the intersection clear.
Minutes - Regular Council Meeting
June 28, 2005 - Page 16
City Manager Noe stated the original plan for the Lowe's site did not include access to the
subject property. He said Mr. Shears stated to him in a conversation that he did not know about the
restrictions and expressed some dismay about the situation. Mr. Noe said at this point, he discussed
adding an access point to the parcel at his insistence to allow SDI to have some access independent
of the Lowe's plan. He said staff tried to work with him as best they could without impacting traffic
safety.
Mr. Kinnison spoke against the suggestion to allow two driveways but shift them as far south
as possible. He asked staff what they thought about it. Mr. Kevin St. Jacques, city's traffic
consultant, replied it was irregular to have driveways in a right -turn lane because of traffic safety
issues, but Mr. Chesney's suggestion to strongly channelize one of the driveways could be a possible
solution. City Engineer Escobar questioned whether there would be enough room to provide two
driveways. He said a compromise might be to have two separated driveways, one exclusively to
enter and one exclusively to exit. Mr. Shears did not agree with this compromise, saying he
preferred to have two right -ins and two right -outs because Mr. Escobar's compromise may lead to
congestion within the development.
In response to Mr. Kelly's question, Assistant City Manager Massey stated the requirement
to establish delineators to channelize the traffic ought to be paid for by the developer. He said the
delineators used in other developments in the city were often knocked down by motorists. Mr. Kelly
stated the only way to guarantee there would be no left-hand turns would be to put a median to cut
this off, but there seemed to be no immediate plans for this.
Mr. Chesney made a motion to sustain the appeal by SDI Realty of a Development Services
department decision to deny multiple drive accesses on Airline Road to the proposed Padre
Commons Plaza development by granting two right -in and two right -out driveways as far south on
Airline Road as possible with channeling and costs to be borne by the developer; seconded by Mr.
Scott. City Secretary Chapa polled the Council for their votes on Mr. Chesney's motion as follows:
22.b. MOTION NO. 2005-212
Motion to sustain the appeal by SDI Realty of a Development Services department decision
to deny multiple drive accesses on Airline Road to the proposed Padre Commons Plaza
development by granting two right -in and two right -out driveways as far south on Airline
Road as possible with channeling and costs to be borne by the developer
The foregoing motion was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
* * * * * * * * * * * * *
Mayor Garrett called for petitions from the audience. Mr. Phil Rosenstein spoke regarding
his concerns about the possible abuse of the Supreme Court's recent ruling on eminent domain by
cities. Mr. Johnny French spoke in favor of a Native American proposal to rename Ennis Joslin
Road in honor of their ancestors. Mr. Luis Corona, 2805 David, and Mr. Abel Parnas, 1306
Maryland, spoke regarding their concerns about projected attendance levels at Broadmoor Senior
Minutes - Regular Council Meeting
June 28, 2005 - Page 17
Center.
Mr. Jack Gordy, 4118 Bray, spoke regarding his concerns about the management of the
public access studio. He said the studio was closed because the rent was two months overdue, and
the equipment had been seized by the landlord. Assistant City Manager Oscar Martinez replied staff
was working with the Legal department to see if the city could reacquire the equipment.
Mr. Dan Stiefel, 3701 Bentwood, spoke regarding his concerns about the taxicab permit
process outlined in the taxicab ordinance.
* * * * * * * * * * * * *
Mayor Garrett called for a brief recess to present a proclamation.
* * * * * * * * * * * * *
Mayor Garrett opened discussion on Item 23, approval of the FY 2005-2006 Crime Control
and Prevention District Budget. There were no comments from the audience.
In response to Mr. Kinnison's question, City Manager Noe stated there were two changes
made to the budget since the last discussion. First, staff amended the revenue estimates to reflect
the same assumptions in terms of percentage growth as utilized in the general fund proposal.
Second, staff added the pawn shop detail as a program in the three remaining years of the budget.
Mr. Kinnison expressed concern regarding the general fund's capacity to support the pawn
shop detail. He asked Police Commander Bryan Smith how much the pawn shop detail program
would cost. Commander Smith replied the program would cost approximately $100,000, but noted
the previous estimate was $86,000. The $100,000 consisted of $41,000 for a management assistant,
and the remainder would fund three data entry clerk positions. Mr. Kinnison stated the city could
contract out for the data entry clerk positions and save the city the cost of offering health benefits.
Ile also questioned why the management assistant position needed to be full-time. Mr Kinnison also
questioned why the pawn shop detail program wasn't being funded out of the police department
budget, rather than the Crime Control and Prevention District budget, if they felt it was such a
priority. City Manager Noe replied the police department budget had a mandate to hire more police
officers to get back up to staff, limiting their flexibility.
In response to Mr. Kinnison's question, City Attorney Fischer stated the Crime Control and
Prevention District could be amended after adoption upon approval of the Crime Control District
Board and the Council. City Secretary Chapa polled the Council for their votes as follows:
Minutes - Regular Council Meeting
.lune 28, 2005 - Page 18
23. RESOLUTION NO. 026327
Resolution authorizing the City Manager or his designee to approve the FY 2005-2006
Budget for the Corpus Christi Crime Control and Prevention District.
The foregoing resolution was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
Mayor Garrett opened discussion on Item 24 regarding a grant application to United States
Tennis Association (USTA) to fund repairs to the H -E -B Tennis Center. In response to Mayor
Garrett's question, Director of Parks and Recreation Sally Gavlik stated the extra funding ($100,000)
would facilitate the repairs of the courts at the center. The foregoing resolution was passed and
approved with the following vote:
24. RESOLUTION NO. 026328
Resolution authorizing the City Manager or his designee to submit a grant application to
United States Tennis Association (USTA) for a Tennis in the Parks Grant in the amount of
$100,000 for reconstruction of courts at the HEB Tennis Center, with a City match of
$500,000 in the Bond 2004 Fund and a total project cost of $600,000.
The foregoing resolution was passed and approved with the following vote: Garrett, Chesney,
Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent.
Mayor Garrett opened discussion on Item 25, a request to rename a park 2120 Hudson from
Midway Park to Nancy Todd Garrett Memorial Park. Mayor Garrett abstained from the vote and
discussion on this item. Mayor Pro Tem Chesney spoke in support of the renaming request. Ms.
Sandy Billish, Chairman of the Park and Recreation Advisory Committee, stated the committee
unanimously approved the renaming of Midway Park to the Nancy Todd Garrett Memorial Park.
Ms. Billish also served as the president of the Friends of the Park organization, and she stated the
Friends would work with Mayor Garrett and family to design and improve the park.
Mr. Garcia spoke in support of the request to rename the park. Mayor Pro Tem Chesney, on
behalf of his family, pledged a $500 donation to the Friends of the Park to assist them in the park
improvements. City Secretary Chapa polled the Council for their votes as follows:
25. FIRST READING ORDINANCE
Waiving the 60 -day waiting period and publication of legal notice; renaming the park at 2120
Hudson St. from Midway Park to Nancy Todd Garrett Memorial Park.
The foregoing ordinance was passed and approved on its first reading with the following
vote: Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Garrett
abstained; Cooper was absent.
Mayor Garrett thanked the Council for approving the ordinance, and he thanked Ms. Billish
Minutes - Regular Council Meeting
June 28, 2005 - Page 19
for her efforts as well.
* * * * * * * * * * * *
*
Mayor Garrett referred to the presentations on the day's agenda. The first presentation was
Item 27, a third quarter FY 2004-2005 budget/performance report. Assistant Director of
Management and Budget Eddie Houlihan noted the information in today's report represented
unaudited third quarter results. Regarding general fund revenues, he stated 81.38 percent of
budgeted revenue had been received by the third quarter. He said the city was on tract to meet
projections in the proposed budget. The projection was $764,671, or one-half percent, higher than
the budgeted amounts. In addition, he said sales tax receipts were also on track to meet projections,
and Municipal Court revenues were strong. He reported an increase in Solid Waste Services revenue
as a result of increased activity from two large vendors. Finally, he said franchise fees were on track
with projections but lower than budgeted mainly due to a decrease in the number of lines reported
for telecommunication fees. He said staff had scheduled a teleconference with the PUC to discuss
the situation.
Regarding general fund expenditures, Mr. Houlihan stated that 69.4 percent of the budget was
expended with 75 percent of the year completed. He said there were no major variances at this time,
but staff was keeping an eye on rising fuel prices, especially as they affected the street and solid
waste departments. He said the city had been able to absorb the increase in fuel prices up to this
point. Mr. Houlihan then reviewed a number of graphs illustrating year-to-date (YTD) revenues and
expenditures in the general fund.
Mr. Houlihan briefly discussed the status of the enterprise funds, comprised of the water,
airport, ambulance, and golf funds. He said the water fund had experienced an increase in revenue
due mainly to rate increases and an increase in water usage for residential and commercial customers
inside the city. The airport fund had also seen an increase in revenue associated with oil and gas
leases and overall improvements. Revenues in the ambulance fund also increased primarily because
the fee structure had resulted in increased Medicare and Medicaid payments. Finally, he said the golf
fund revenues were slightly off from budget due to construction, but were higher than the same time
the previous year. Mr. Houlihan reviewed a number of graphs illustrating YTD revenues and
expenditures in the enterprise funds.
Mr. Houlihan discussed the status of the internal service funds, which are budgeted
allocations for services to internal customers. The internal service funds are comprised of the stores
fund, maintenance services, and risk management. Mr. Houlihan stated the stores fund revenues
continued to increase primarily because staff was keeping high volume items in stock and was
communicating better with departments. The maintenance service revenues had also increased due
to increased fuel prices. Finally, he said the risk management fund reflected lower than budgeted
expenditures for health insurance, general liability, and workers' compensation. Mr. Houlihan
reviewed a number of graphs illustrating YTD expenditures and revenues in the internal service
funds.
Mr. Houlihan discussed the status of the special revenues funds, comprised of the hotel
occupancy tax fund (HOT), the Reinvestment Zone No. 2 fund, and the Crime Control and
Minutes - Regular Council Meeting
June 28, 2005 - Page 20
Prevention District fund. He reported the Hotel Occupancy Tax fund revenues were tracking about
six percent below budgeted levels ($6.6 million), and the city would need to see a "strong finish" to
meet projections in this area. The Reinvestment Zone No. 2 fund had also seen an increase in
revenues because of very favorable appraised values in the Packery Channel area. Finally, he stated
the Crime Control and Prevention District fund had also seen an increase in revenues mainly because
they had conservatively budgeted their sales tax revenue. Mr. Houlihan concluded by displaying a
number of graphs depicting the YTD revenues and expenditures in the special revenue funds.
Mr. Scott expressed concern that statistics from the Convention and Visitors Bureau (CVB)
regarding the Hotel Occupancy Tax were not in line with the city's estimates. He said the CVB had
recently provided statistical data indicating that the economic picture was good, and had even
requested an increase in funding to continue their efforts. The city's estimates, however, did not
support this report. City Manager Noe replied affirmatively, saying there appeared to be a disjoint
between what the city was seeing in terms of hotel occupancy rates and the resulting revenue stream.
He said the city was investigating the discrepancy, which could be attributed to individual pay
practices by certain hotels. Mr. Kinnison added the CVB was supposed to be making an effort to
provide standardized reporting per their contract, so their figures would match what the State of
Texas's website showed. He also stated that a significant amount of hotel business was non-taxable
because it was driven by governmental use. Mr. Noe stated the city was considering adding an
incentive to the CVB contract to encourage them to follow-up with hotels to ensure payment of the
IIOT tax.
* * * * * * * * * * * * *
The next presentation was Item 28, a third quarter report on the Health Benefits/Risk
Management Fund. Director of Human Resources Cynthia Garcia began by reporting on the status
of the health benefits fund. She displayed a graph depicting the number of claims filed by plan. She
noted the average number of claims per month was 6,343 this quarter, compared with 2004 third
quarter numbers of an average of 6,130 claims per month.
A second graph illustrated the dollars paid by plan including prescriptions. Ms. Garcia stated
the average monthly amount paid in this quarter was $1,470,000, while last fiscal year, the average
monthly amount was $1,224,000.
A third graph depicted the cost per claim. Ms. Garcia stated the average cost per claim in
the third quarter was $234, while last fiscal year, the average cost was $199. She noted the Fire
Department's average claim was $412.87, up from $365.69 per member last year this quarter. The
Police department cost was $484.71 per member, down from $493.78 last year this quarter. Citicare
cost was $385.33 per member, compared with $326 per member.
Ms. Garcia reported that this quarter, staff included coverage for smoking cessation and
obesity to proactively affect the cost of health insurance in future years. In addition, she stated next
year's health insurance rates included a nine percent increase in Citicare and in Police, and a six
percent increase in Fire. In response to Mayor Garrett's question, Ms. Garcia reported retirees would
see a nine percent increase in health insurance rates.
Minutes - Regular Council Meeting
June 28, 2005 - Page 21
Mayor Garrett asked Ms. Garcia to explain why health insurance rates were going up. Ms.
Garcia replied the city's health insurance rates were going up because health care costs were
increasing. Mayor Garrett asked staff to disseminate information to city employees explaining the
rationale for the cost increases. In response to Mr. Scott's comment. Ms. Garcia stated the premiums
were paid by the employee, but the cost increase was mostly subsidized by the city in the Citicare
and Police plans. In the Fire Plan, she said any cost increase was split evenly (50-50) by the city and
the employee.
Mr. Kinnison noted there was a new accounting change that would require the city to account
for the cost of retirees' benefits effective July 31, 2007. City Manager Noe explained the GASB
recording rules required that the city calculate retiree health care costs, particularly the amount the
city was subsidizing, and report it as a long-term liability. Mr. Kinnison added the new requirement
would require the city to decide whether to leave this unfunded liability or find a way to fund it. He
said the city would have to examine how long they can continue to provide the benefit. Health
Benefits Manager Quentin Masters stated the situation would be much worse if the city offered
guaranteed payment of premiums in their retirement, which it does not. Ms. Garcia stated the city
included retirees in the same pool as current city employees, but the retirees paid their own
premiums.
Ms. Garcia reported on the status of the Risk Management Fund, comprised of the workers'
compensation and general liability funds. Beginning with the workers' compensation fund, she
referred to a graph depicting incurred costs versus the paid costs. She said there was $757,833 in
incurred costs for the first nine months of this year, as opposed to $1,782,734 in incurred costs last
year at the same time. The total claims paid this year in the first nine months was $525,498,
compared with $848,988 last year.
Ms. Garcia displayed a graph illustrating dollars paid in the current year for prior years'
claims. In the first nine months of this year, $1,670,468 was spent on prior year's claims. She said
the Police department was down by 29 claims, and the Fire department was down by 27 claims, and
the Solid Waste department was down by 35 claims. The Parks department was up by 15 claims,
Wastewater was up by six claims, and the All Other category was up by 44 claims.
Mr. Noyola expressed concern that employees were being released from limited duty before
they were physically ready to resume their full duties. He had heard from some employees who felt
the city's doctors at Concentra were rushing them to resume their full duties to benefit the city. Ms.
Garcia replied the employees had the option to use their own physician. She stated that the city did
not rush employees back to work because of the risk of re-injury. If the employee had a problem
with Concentra, she said the city had medical case managers who could advocate for the employee.
She encouraged employees to speak with Ms. Cindy Papageorge, the city's DRC coordinator as well.
Ms. Garcia referred to a graph depicting year-to-date claims count by type of injury (period
ended April 30). She said inflammation was down by 50 percent; contusions were down by 23
percent; sprains were up by 13.5 percent; and punctures were up by 11 percent.
Regarding the general liability fund, Ms. Garcia displayed a graph enumerating the liability
claims count by department. There were a total of 576 claims filed this year at this point, compared
Minutes - Regular Council Meeting
June 28, 2005 - Page 22
to 686 claims last year in the first nine months. She said every department was down except for Fire,
which remained at the same level of 39 claims, and Park Maintenance, which increased slightly from
18 claims last year to 23 claims this year.
Ms. Garcia displayed a graph depicting incurred costs by department (claims filed). She
stated the city's incurred costs were up $36,426 for the first nine months of this year compared to last
year. The Police department, however, was down by $285,108, and the Water department was up
$181,354.
Ms. Garcia referred to a graph illustrating dollars paid in current year for previous years'
claims (as of April 30, 2005), totaling $1,114,208 in the first nine months of this year.
Finally, Ms. Garcia displayed a graph depicting the types of claims for the period ended April
30. She said vehicle damage was the number one type of claim. but it was down to 291 claims from
327 claims in the first nine months of this year. Property damage was down by 57 claims to 162
claims in the first nine months.
* * * * * * * * * * * * *
The next presentation was Item 29, an update on the design, implementation, and evaluation
of the Wireless Fidelity (Wi-Fi) and Automated Meter Reading (AMR) pilot projects. Director of
Municipal Information Services (MIS) Ogilvie Gericke reviewed the history of the numerous issues
facing the city's current manual meter reading services, concluding that staff had determined it was
prudent to evaluate if Automated Meter Reading (AMR) was a more cost effective solution.
As part of the evaluation, Mr. Gericke stated the projected cost estimates indicated that AMR
was a viable alternative to manual meter reading; and the sharing of infrastructure with other
wireless systems was also desirable. Subsequently, the city contracted with Public Technology, Inc.
(PTI) for the design, implementation, and evaluation of AMR and Wi-Fi pilot projects. In addition,
the city contracted with Northrop Grumman and TROPOS for installation of the AMR and Wi-Fi
pilot systems.
Mr. Gericke discussed the project goals for the AMR and Wi-Fi pilot projects as follows:
automated meter reading for municipal gas and water services; and put extra Wi-Fi mesh network
bandwidth to use for public works and public safety applications as well as public access.
Mr. Gericke provided a status report on the AMR pilot, saying the project was in its final
stages. The city had installed 4,262 meters, and had problems with only 42 meters. The meters were
being read twice a day, and had been successfully interfaced with the Utility billing system. Staff
was finalizing cost projections for Council presentation in July or August 2005. Funding for Phase
1 of the citywide deployment was included in the FY 2005 CIP program.
Mr. Gericke provided a status on the Wi-Fi pilot project. He said the pilot was completed
at a cost of $1,041,200. A contract in the amount of $79,950 was awarded for consulting service to
support the Digital City Initiative. The citywide deployment cost was expected to be $5,934,875,
and the MIS budget request for FY 2005-2006 included funding for operation and maintenance. Mr.
Minutes - Regular Council Meeting
June 28, 2005 - Page 23
Gericke then displayed a map of the AMR and Wi-Fi pilot areas.
Mr. Gericke discussed the security measures being taken to protect the integrity of the Wi-Fi
system. They employed a multi -layered security model including the following elements: TROPOS -
encryption between devices; PRONTO - secure sign -on; VPN and Netilla - secure intemet access;
CISCO - firewall protection; and VLAN - separation between communication links.
Mr. Gericke briefly discussed the anticipated results of the AMR/Wi-Fi systems. He said the
system would provide an opportunity to increase efficiencies, citizen satisfaction, and energize
economic vitality. In addition, Corpus Christi was the first city out of 10 cities worldwide to be
named to Intel's Digital City Initiative. City Manager Noe remarked that Intel would soon undertake
an intensive marketing effort to publicize the program. He said Intel would use developments from
this initiative for marketing their chips to computer manufacturers worldwide.
Mr. Gericke discussed the Digital City concept in more detail. The concept vision was to
create a connected community that combined broadband communication infrastructure and
innovative services to better meet the needs of governments and their employees, citizens, and
businesses. The Digital City concept was designed to be a multi-year program; provide proof of
concept by multiple partners; obtain measurable results; strengthen economies; and ensure citizen
access to services.
Mr. Gericke stated staff had begun forming cooperative partnerships to develop and test the
"proof of concepts" and had begun work on a business plan. They issued an initial call for
partnerships and received numerous responses from SBC, Sprint, CellNet, Northrop Grumman;
RightWay; Pronto; NextPhase; and Novax. They also met with representatives from the Corpus
Christi Independent School District; Downtown Management District, Regional Transportation
Authority, and the Port of Corpus Christi Authority.
Mr. Gericke gave a number of examples of"proofs of concept" as follows: mobile inspection
program; healthcare system information/ first responder access; public safety tactical access to
streaming video and mug shots; affordable automatic personal location; and public school
student/teacher/parent access system.
Mr. Gericke discussed the challenges facing the Wi-Fi and Digital City initiatives. He said
the Wi-Fi and Digital City initiative will have a major impact on operation and management of the
MIS department. To meet the challenge, the city must take the following measures: ensure
Information Technology investment; ensure the city has the ability and knowledge to effectively
manage technology; plan for the major technology transformation; solidify definition of to -be
environment; ensure MIS department is positioned to support the to -be environment; and ensure
processes are stable before moving into more complex environment. In addition, Mr. Gericke said
the city was working with Northrop Grumman on a proposal to develop a Strategic Technology
roadmap; and to perform a network -focused business impact analysis.
Mr. Gericke discussed the strategic roadmap the city was using in the Wi-Fi process which
was comprised of the following elements: process mapping; technology assessment; and a strategic
technology roadmap.
Minutes - Regular Council Meeting
June 28, 2005 - Page 24
Mr. Gericke discussed the network -focused Business Impact Analysis (BIA). He said the
analysis was comprised of the following elements: manpower utilization study; fiber planning/design
integration; network design evaluation and recommendation; assess needs and requirements for a
network operations center; perform a business continuity review; and network documentation
migration.
Mr. Gericke covered the next steps in the process during the months of July and August.
First, staff would present the Preliminary Business Plan and request approval to incorporate directed
changes and proceed with implementation. Second, he said staff would request approval to execute
contracts for the following operations: design, installation, testing and integration of the citywide
wireless network; development of a Strategic Information Technology roadmap; performing a
network -focused Business Impact Analysis; acquisition of hardware and management services
necessary for secure sign -on; and access to utility poles and power supply to Wi-Fi devices.
Mr. Garcia asked if the cost projections presented today were the worst-case scenario. Mr.
Gericke answered affirmatively. City Manager Noe added that as part of the Digital City Initiative,
Intel would present a scientific document that would demonstrate the efficiencies to be gained from
the Wi-Fi.
In response to Mr. Scott's question, Mr. Noe replied that Wi-Fi services would be free to the
public until July 31. He said staff had used the pilot program period as a way to obtain data for
analysis. He said there were no immediate plans to charge for the service, but cautioned that the
service would not be a permanent connection. In addition, he said Intel's "proof of concept" research
would be a vehicle for obtaining free software and hardware to further the concept.
In response to Mr. Kinnison's question, Mr. Noe stated the capital budget included funding
for aspects of the AMR/Wi-Fi implementation, and this budget had already been approved by
Council. He said the operating budget assumed some maintenance of the Wi-Fi in place today, and
modest cost for potential expansion. He emphasized, however, that the bulk of the costs would be
spent in construction.
* * * * * * * * * * * * *
The final presentation was Item 30, an overview of the proposed FY 2005-06 Budgets for
Internal Service, Special Revenue, and Debt Service funds. Regarding the internal service funds,
(comprised of the stores, maintenance services, MIS, engineering services, and combined risk
management funds), Assistant City Manager Oscar Martinez stated the FY 2006 estimated revenues
total was $74,323,743, up from $69,398,030 in FY 2005. FY 2006 expenditures were estimated at
$73,492,373, up from $63,421,786 in FY 2005. Mr. Martinez attributed the increase primarily to
increases in risk management costs.
Regarding the stores fund, Mr. Martinez said FY 2006 revenues were estimated at
$3,647,289, down from $3,671,226 in FY 2005. He noted it was a strategic decision to reduce fund
balances in the internal services funds. FY 2006 expenditures were estimated at $3,841,754, up from
$3,530,896 in FY 2005. He said warehouse services comprised approximately 80 percent of the
stores fund activity, and increased use of warehouse services reduced overall costs for departments
Minutes - Regular Council Meeting
June 28, 2005 - Page 25
due to volume buying.
Regarding the maintenance services fund, Mr. Martinez said FY 2006 revenues were
estimated at $17,206,00, up from $16,246,427 in FY 2005. FY 2006 expenditures were estimated
at $18,599,950, up from $16,827,096 in FY 2005. He noted the projected increase in the cost of fuel
exceeded the FY 2005 budget by $1.3 million.
Regarding the MIS fund, Mr. Martinez said FY 2006 revenues were estimated at
$13,054,313, up from $12,090,067 in FY 2005. FY 2006 expenditures were estimated at
$13,345,147, up from $12,009,070 in FY 2005. He noted the FY 2005 MIS fund reflected an
increase of 18 FTEs, primarily due to the absorption of 15 FTEs from the Call Center. Two FTEs
were transferred from public safety departments and 1 additional technical specialist was transferred
as well. He clarified that the MIS fund was comprised of two departments, MIS and E -Government
services. In 2001, he said the city initiated re-engineering and consolidation of technology services
to accomplish greater efficiencies and effectiveness. Although staff and funding were moved into
the MIS fund, he said the associated costs were allocated back to the relevant departments. The
Customer Call Center, for example, was moved to E -Government Services; additionally, technical
staff from public safety, public works, and municipal court and health were moved into the MIS
department. He noted that budget variances between FY 2005 and FY 2006 in this fund were
5598,362, with $168,910 of that amount budgeted to MIS and $429,452 budgeted to E -Government
Services. Mr. Martinez discussed the MIS Fund FY 2005 service expansion in E -Government
Services and the Call Center.
Regarding the engineering services fund, Mr. Martinez said FY 2006 revenues were
estimated at $4,095,043, up from $3,893,253 in FY 2005. FY 2006 expenditures were estimated at
$3,957,941, up from $3,788,563 in FY 2005. He noted there was no change in staffing levels in FY
2006, and budgeted expenditures in FY 2006 were $18,000 less than budgeted amounts in FY 2005.
He covered the major strategies and priorities for expenditures in this fund.
Regarding the combined risk management fund, Mr. Martinez stated FY 2006 revenues were
estimated at $36,321,095, up from $33,497,057 in FY 2005. FY 2006 expenditures were estimated
at $33,747,581, up from $27,266,161. He stated the major strategies and priorities in this fund were
to develop and implement a city-wide risk management strategy; and to oversee the use, delivery,
and cost of city employee insurance plans. He discussed key issues affecting this fund, including
increases in health benefit insurance rates, and the status of the workers' compensation fund.
Mr. Martinez covered the special revenue funds, comprised of the arena, Reinvestment Zone
No. 2, seawall, business and job development, development services, visitors' facility, crime control,
and hotel occupancy tax funds. Total revenues for the special revenue funds was estimated at
$36,552,999 in FY 2006, up from $35,557,073 in FY 2005. FY 2006 expenditures are estimated at
$33,303,906, down from $35,503,324 in FY 2005.
Regarding the development services fund, FY 2006 revenues are estimated at $4,489,492,
down from $4,591,907 in FY 2005. FY 2006 expenditures are estimated at $4,803,729, down from
$4,839,148 in FY 2005. The key issues for this fund are as follows: increase of 3 FTEs in FY 2006;
and operations revenues are projected to decrease by 4.5 percent in FY 2006. Mr. Martinez then
Minutes - Regular Council Meeting
June 28, 2005 - Page 26
discussed a number of major strategies and priorities in this fund.
Regarding the crime control fund. Mr. Martinez stated FY 2006 revenues were estimated at
$4,190,243, up from $4,058,825 in FY 2005. FY 2006 expenditures are estimated at $4,520,011,
down from $4,262,632 in FY 2005. The key issues affecting this fund were as follows: sales tax
revenue was projected to increase by 3 percent in FY 2006; and the FY 2006 budget reflected the
continuation of current level of service. Mr. Martinez covered the major strategies and priorities for
this fund.
Regarding the hotel occupancy fund, FY 2006 revenues were estimated at $8,844,310, down
from $8,437,882 in FY 2005. FY 2006 expenditures were estimated at $8,990,732, down from
$9,250,623 in FY 2005. Mr. Martinez discussed key issues in this fund as follows: hotel/motel tax
is projected to increase in FY 2006 by 5 percent; funding for the CVB increased by $150,000; and
the contribution for beach cleaning was increasing by $158,000 in FY 2006. He discussed the major
strategies and priorities in this fund.
Regarding Reinvestment Zone No. 2, Mr. Martinez stated FY 2006 revenues were estimated
at $1,180,980, up from $1,002,612 in FY 2005. FY 2006 expenditures were estimated at
$1,172,150, up from $540,814 in FY 2005. The key issue in this fund was that FY 2006 funding for
operating capital for Packery Channel project improvements was programmed at $500,000. He
discussed the major strategies and priorities for this fund.
Regarding the seawall fund, FY 2006 revenues were estimated at $4,858,208, up from
$4,633,402 in FY 2005. FY 2006 expenditures were estimated at $1,545,582, down from
$3,067,181 in FY 2005. Key issues in this fund were as follows: debt service costs for seawall -
related debt was programmed to decrease by approximately $1.5 million in FY 2006; sales tax
revenue was projected to increase by approximately 4.3 percent in FY 2006.
Regarding the arena fund, FY 2006 revenues were estimated at $4,893,646, up from
$4,635,954 in FY 2005. FY 2006 expenditures were estimated at $4,146,789, down from
$5,220,520 in FY 2005. The key issues are as follows: sales tax revenue was projected to increase
by approximately 4.3 percent in FY 2006; and FY 2006 funds were programmed to support debt
service and transfer to the visitors' facility fund remain approximately the same for FY 2005.
Regarding the business and job development fund, FY 2006 revenues were estimated at
$4,773,038, up from $4,536,706 in FY 2005. FY 2006 expenditures were estimated at $4,560,400,
down from $4,823,780 in FY 2005. Key issues in this fund included the following items: FY 2006
sales tax revenue was projected to increase by 4.6 percent; and FY 2006 budget provided funding
fro insurance for the baseball stadium
Regarding the visitors' facility fund, FY 2006 revenues were estimated at $3,231,694, down
from $3,568,350 in FY 2005. FY 2006 expenditures were estimated at $3,469,378, up from
$3,172,277 in FY 2005. The key issues in this fund included the following: operations and
maintenance of the convention center/arena were projected to increase by $422,000, but the coliseum
costs were decreasing by $150,000.
Minutes - Regular Council Meeting
June 28, 2005 - Page 27
Regarding the Local Emergency Planning Committee (LEPC) fund, FY 2006 revenues were
estimated at $91,388, up from $86,435 in FY 2005. FY 2006 expenditures were estimated at
$95,135, down from $104,065 in FY 2005. A key issue in this fund was that the FY 2006 budget
was programmed to be $10,000 less than expended in FY 2005.
Finally, Mr. Martinez covered the debt service funds. He pointed out that in FY 2005, debt
service expenditures went down from $94 million to $69 million, which he attributed to refunding
efforts. In addition, he said the city's debt load in all but one of its funds was either remaining
constant or decreasing. The exception was the North Padre Island TIF fund, which required the
deferment of payment on principal to have time to build up a $3 million in reserve.
Mr. Garcia noted that during the Council Audit Committee meetings, the issue about the lack
of payment for in-house engineering services was raised. He asked if staff would be billing for
engineering services now. Mr. Martinez answered affirmatively.
Mr. Noyola asked questions about the new 4 -tier system for prescriptions the city would be
implementing in the FY 2006 health benefits plan.
Mr. Kinnison asked staff to break out the costs in Hotel Occupancy Tax that were used for
general purposes and for the convention center expansion. Mr. Scott expressed an interest in funding
improvements to the downtown area for enhanced sidewalks and landscaping to make going from
the arena to the baseball stadium, for example, a more pleasurable experience.
Mr. Scott and Mr. Garcia asked for more information on expenditures in the business and job
development fund.
Mr. Scott asked about beach cleaning costs. Mr. Martinez stated these costs were incurred
in the general fund. He said staff had overestimated revenues to be gained from the beach permit
sales, and thus had to transfer revenues from the hotel/motel tax to cover them. Mr. Scott stated he
thought the city did a good job cleaning the beaches, but had issues with enforcement of littering
laws. City Manager Noe added the city had approached the county about assisting them with the
beach cleaning effort.
Mr. Noyola asked if the city was increasing enforcement efforts on beach permits. Director
of Parks and Recreation Sally Gavlik stated staff would be working with the code enforcement
division to issue more tickets and to sell permits to those in need.
* * * * * * * * * * * * *
Mayor Garrett announced the executive session, which was listed on the agenda as follows:
31. Executive session under Texas Government Code Section 551.072 regarding the acquisition
of property for a new wastewater treatment plant, with possible discussion and action related
thereto in open session.
The Council went into executive session.
Minutes - Regular Council Meeting
June 28, 2005 - Page 28
* * * * * * * * * * * * *
The Council returned from executive session, and Mayor Garrett called for the City
Manager's report. City Manager Noe reported that beginning on Tuesday, July 5, the animal care
facility at 2626 Holly Road would permanently provide services on Saturdays. In addition, he stated
the city would be aggressively enforcing the prohibition of unauthorized fireworks on July 4.
Finally, he stated that at the next meeting, the public hearing for the operating budget was scheduled
well as a report on crime statistics.
Mayor Garrett reported an area near the front door of city hall was being used as a restroom
at night. He asked Mr. Noe to look into the matter. He also reported about complaints he had
received about a performer at the Concrete Street Amphitheater who had made crude and derogatory
comments about the city. Mr. Noe said he had received a call about the incident and was following
up on it.
Mayor Garrett called for Council concerns and reports. Mr. Noyola asked when the Tri -Data
study would be completed. Mr. Noe replied the study may be in by the end of this week. Mr.
Noyola also asked if there was any way to ban the sale of fireworks in the city and the county. Mr.
Noe said he would look into it.
There being no further business to come before the Council, Mayor Garrett adjourned the
Council meeting at 4:30 p.m. on June 28, 2005.
* * * * * * * * * * * * *