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HomeMy WebLinkAboutMinutes City Council - 10/25/2005[ 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 October 25, 2005, which were approved by the Cite Council ori November 8, 2005. WITNESSETH MY HAND AND SEAL, on this the 8th day of November, 2005. Armando Chapa City Secretary ti F \ L PRESENT Mayor Henry Garrett Mayor Pro Tem Jerry Garcia Council Members: Brent Chesney Melody Cooper Rex Kinnison Bill Kelly John E. Marez Jesse Novola Mark Scott MINUTES Cll Y OF CORPUS CHRISTI, TEXAS Regular Meeting October 25, 2005 10:00 a.m. 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 Phillip Phifer of Trinity 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 October 18, 2005. A motion was made, seconded, and passed to approve the minutes as presented. * * * * * * * * * * * * * Mayor Garrett referred to Item 2 and the following board appointments were made: Ethics Commission Fred Haley (Reappointed) James Richard Cramer (Reappointed) F)r. Nicholas Adame (Appointed) * Regional Health Awareness Board Angela Womack (Appointed) * * * * * * * * * * * * Mayor Garrett called for consideration of the consent agenda (Items 3-16). City Secretary Chapa announced that Council Member Noyola was abstaining from the vote and discussion on Items 15.a. and 15.b. Council Member Scott stated that he would be abstaining from the vote and discussion on Item 16. There were no comments from the public. A motion was made. seconded, and passed to approve Items 3 through 16, constituting the consent agenda. ( `ity Secretary Chapa polled the Council for their votes as follows: Minutes Regular Council Meeting )ctober 25. 2005 Page 2 MOTION NO. 2005-362 Motion approving a Municipal Lease Line of Credit with Banc of America Leasing and Capital, LLC. of Chicago. Illinois in accordance with Bid Invitation No. BI -0025-06 based on low bid for an estimated annual expenditure of $154,854. The term of the contract is for twenty-four months with options to extend for up to two additional twelve- month periods subject to the approval of the contractor and the City Manager or his designee. The foregoing motion was passed and approved with the following vote: Garrett, Chesney. Cooper. Garcia. Kelly. Kinnison, Marez. Noyola. and Scott, voting "Aye". MOTION NO. 2005-363 Motion approving a supply agreement with National Waterworks, Inc., of Corpus Christi, Texas for approximately 6.495 pipe repair clamps ranging in size from 2" to 30" in accordance with Bid Invitation No. BI -0022-06 based on low bid for an estimated annual expenditure of $231,520.90. The term of the contract is for twelve months with options to extend for up to two additional twelve-month periods subject to the approval of the contract and the City Manager or his designee These items are purchased into Warehouse Inventory and charged out to the Water and Wastewater Departments. The foregoing motion was passed and approved with the following vote: Garrett, Chesney. Cooper, Garcia, Kelly. Kinnison. Marez. Noyola, and Scott, voting "Aye". MOTION NO. 2005-364 Motion approving a supply agreement with Greatstate Transmissions, of Corpus Christi, Texas for automatic transmission overhaul and repair service for approximately one hundred sixty-three (163) automobiles and light trucks in accordance with Bid Invitation No. BI -0143-05. based on only bid for an estimated annual expenditure of $108,350. The term of the contract shall 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 budgeted by Maintenance Services and the Fire Department in FY 05-06_ The foregoing motion was passed and approved with the following vote: Garrett, Chesney. Cooper, Garcia. Kelly, Kinnison, Marez. Noyola, and Scott, voting "Aye". Minutes - Regular Council Meeting October 25, 2005 - Page 3 MOTION NO. 2005-365 Motion approving the purchase of four (4) riding mowers from John Deere Commercial, of Cary, North Carolina in accordance with the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC), for a total amount of $40,868.52. The riding mowers will be used by the Park and Recreation Department. Funding is available from the FY 2005-2006 Capital Outlay Budget in the General Fund. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola. and Scott, voting "Aye". ORDINANCE NO. 026527 Ordinance appropriating a $9,955 sub -contract grant from the Chamber of Commerce Foundation in the No. 1067 Park and Recreation Grants Fund for funding data collection and analysis activities at the Juvenile Assessment Center. An emergency was declared. and the foregoing ordinance was passed and approved with the following vote: Garrett. Chesney. Cooper. Garcia, Kelly, Kinnison, Marez, Noyola, and Scott.. voting "Aye". ORDINANCE NO. 026528 Ordinance appropriating $230,700 from the estimated program income revenue in the No. 1066 Health Grants Fund as State Fiscal Year 2005-2006 program income to fund laboratory and nursing services for the period of September 1, 2005 through August 31, 2006. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett. Chesney, Cooper. Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". ORDINANCE NO. 026529 Ordinance appropriating $5,930 in the No. 4720 Community Enrichment Fund to purchase playground equipment for Vineyard Park. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye Minutes Regular Council Meeting tctober 27,. 2005 - Page 4 MOTION NO. 2005-366 Motion authorizing the City Manager or his designee to execute a construction contract with Big State Excavation, of Houston, Texas in the amount of $1,093,730 for the Sanitary Sewer Manhole Replacement Old Brownsville Road/Omaha Drive. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly. Kinnison, Marez, Noyola, and Scott, voting "Aye". MOTION NO. 2005-367 Motion authorizing the City Manager or his designee to execute a construction contract with DMB Construction, LL(, of Burnett, Texas in the amount of $125,389.71 for the Concrete Lined Channel Rehabilitation -Carroll West Ditch project. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia. Kelly, Kinnison. Marez, Noyola, and Scott, voting "Aye". MOTION NO. 2005-368 Motion authorizing the City Manager or his designee to execute Change Order No. 1 with Jalco, Inc., of Houston, Texas in the amount of $357,720.76 for the Antelope/Salt Flats Area 36"748" Wastewater Gravity Interceptor Line. The foregoing motion was passed and approved with the following vote: Garrett, Chesney. Cooper, Garcia, Kelly, Kinnison, Marez, Noyola. and Scott, voting "Aye". 1 3. MOTION NO. 2005-369 Motion authorizing the City Manager or his designee to execute a contract with the University of Texas Marine Sciences Institute in an amount not to exceed $264,247 for biological monitoring services associated with the Rincon Bayou Diversion Project 2005- 2006. The foregoing motion was passed and approved with the following vote: Garrett, Chesney. Cooper, Garcia, Kelly, Kinnison, Marez. Noyola. and Scott, voting "Aye". 14. MOTION NO. 2005-370 Motion authorizing the City Manager or his designee to approve an aid to construction in the amount of $196,540 with Nueces Electric Cooperative to extend electrical power to the Cefe F. Valenzuela Landfill Site Development Project. The foregoing motion was passed and approved with the following vote: Garrett, Chesney. Cooper, (iarcia, Kelly. Kinnison, Marez, Noyola. and Scott, voting "Aye". ihnutes - Regular Council Meeting ictober 25. 2005 - Page 5 MOTION NO. 2005-371 Motion authorizing the City Manager or his designee to execute a Change Order No. 5 with Berry Contractors L.P. dba Bay, Ltd.. of Corpus Christi, Texas in the amount of $186,536 for removal of the existing Localizer Antenna Array and replacement with a new Federal Aviation Administration furnished Localizer Antenna Array as part of the Runway 13/31 Rehabilitation. Blast Pads and Shoulders, Airfield Drainage Improvements - Phase 4. and Runway 13/31 Lighting and Cable Replacements at Corpus Christi International Airport The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia. Kelly. Kinnison, Marez, and Scott, voting "Aye"; Noyola abstained. 15.11 MOTION NO. 2005-372 Motion authorizing the City Manager or his designee to execute a Change Order No. 6 with Berry Contractors L.P., dba Bay, Ltd.. of Corpus Christi, Texas in the amount of $56,010 for an additional 18,670 linear feet of crack grouting, cleaning and sealing as part of the Runway 13/31 Rehabilitation. Blast Pads and Shoulders, Airfield Drainage Improvements - Phase 4, and Runway 13/31 Lighting and Cable Replacements at Corpus Christi International Airport The foregoing motion was passed and approved with the following vote: Garrett, Chesney. Cooper. Garcia. Kelly, Kinnison. Marez, and Scott, voting "Aye"; Noyola abstained. 6. ORDINANCE NO. 026530 Ordinance repealing Ordinance No. 5347. adopted on May 6, 1959, and Ordinance No. 5442, adopted on July 29. 1959. amending the restrictions relating to Block "A" Parkdale Shopping Center. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett. Chesney. Cooper, Garcia, Kelly, Kinnison, Marez, and Noyola. voting 'Ave"; Scott abstained. ************* Mayor Garrett opened discussion on Item 17 regarding an agreement with Aeromar Airlines to provide air service between Corpus Christi and Monterrey, Mexico. Airport Board Chairman Ed Hicks reported that after several years of negotiations with four different airlines, staff finalized a contract with Aeromar for international air service yesterday at 3:00 p.m. in Mexico ('ity. The flight service would begin on November 21, pending the Council's approval today Mr. Hicks said the success was due to a team effort, including letters written by the Ma'.or, (iovernor Perry. and a study from the Chamber of Commerce. In conclusion, he asked lot the Councils approval of this item. Minutes — Regular Council Meeting. )ctoher 25, 2005 -- Page 6 Assistant Airport Director Debra Keller added that Aeromar's proposed air service ,,chedule would begin on Monday, November 21 and would depart Monterrey at 12:40 p.m. and arrive in Corpus Christi at I :45 p.m. Flights would leave Corpus Christi at 2:20 p.m. and arrive in Monterrey at 3:25 p.m- on Mondays. Wednesdays, and Fridays. She said this was a preliminary schedule only. Aeromar was ready and willing to change the schedule to meet ustomer demand. Mayor Garrett asked for public comment. Mr. Abel Alonzo spoke in support of the new international air service, and thanked everyone for the team effort. Mr. Scott asked about the airport's U.S. Customs area. Ms. Keller replied that a full-time S, Customs office was moving into the facility this week. She said Aeromar was waiting on their permits from the Department of Transportation (DOT) which should be approved any day. The federal inspection station was located below the main concourse in the gate area. As passengers deplaned in Gate 4, they would go through inspections and then come out through the concourse before the passenger checkpoint area. Mr. Scott asked for the status of the improvements to the airport's large runway. Ms. Keller replied the runway construction was on schedule for completion in mid-November. Mr. Garcia thanked staff for their efforts in obtaining international air service for the city. City Secretary Chapa polled the Council for their votes as follows: MOTION NO. 2005-373 Motion authorizing the City Manager or his designee to execute an airline operating agreement with Aeromar Airlines to provide air service between Corpus Christi, Texas and Monterrey, Mexico. for a term of one year with an automatic one year renewal unless terminated by either party. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper. Garcia, Kelly. Kinnison, Marez, and Scott, voting "Aye"; Noyola abstained. Mayor Garrett opened discussion on Item 18 regarding the Rincon Bayou Diversion Project. Assistant City Manager Ron Massey began by providing a history of the watershed area He stated that the Bureau of Reclamation had completed a demonstration project in the mid-1990s to increase the opportunity for freshwater flow into the Upper Nueces River Delta. They constructed two channels in the estuary delta area, a Nueces River Overflow Channel and a 1.ower Overflow Channel. The demonstration project lasted five years, and the results indicated hat the freshwater flow was beneficial to the environment because it was important to estuary productivity. Periodic flood events that inundated the delta provided a nutrient exchange; Freshwater to organisms; transported nutrient materials to the hay; and buffered bay salinity. He said the construction of reservoirs in the watershed had reduced the frequency and magnitude of 'hese flooding events. Mr. Massey then displayed a chart depicting the flooding frequency per Minutes- Regular Council Meeting October 25, 2005 Page 7 year in the area, noting that as the number of reservoirs increased. the number of flooding events decreased Mr. Massey stated that since the term of the demonstration project was only five years, the Bureau of Reclamation was forced to close the channel at the end of that period. The city became involved at this point to reopen the channel. provided it could get a measure of relief on its pass-through requirements on its agreed order, Subsequently, the city was granted relief under low, reservoir conditions. When the reservoir levels were at 30 percent, the pass-through requirement was stopped. and lower releases were required at 40 percent with fewer conservation measures The Texas Commission on Environmental Quality agreed to the changes in the agreed order; in return. the city agreed to reopen the channel and to create a pipeline. In 2002. Mr. Massey reported that the city reopened the channel while concurrently designing the Rincon Bayou pipeline. The pipeline was scheduled for completion in 2003, but was delayed due to problems with land acquisition and flooding that interfered with engineering :efforts Ile stated that the Rincon Bayou pipeline would start from a point upstream of the t�aiallen Saltwater Barrier Dam to a point downstream of the Nueces River Overflow Channel. Ile said the city was working with the Coastal Bend Bays and Estuaries Program to determine the hest times of the year to schedule freshwater flows. In conclusion. Mr. Massey stated that the pipeline project was beneficial to the environment. and in return the city did obtain relief from its agreed order. Thus, staff was recommending approval of the construction contract for the Rincon Bayou pipeline. Mr. Scott asked if the pipeline and the channel were required as part of the agreed order changes. Mr. Massey answered affirmatively. Mr. Scott asked how much the project would ultimately cost to complete. City Engineer Angel Escobar replied the channel itself would cost $R_4 million. and the construction award was $7221 million. Mr. Scott remarked the city was spending a substantial amount of money on improving the environment, and in return the environmental community had assisted the city with its pass-through requirements. He said this was an example of a win-win situation. Mr. Kelly asked if the pipeline would provide any relief from upstream flooding. Mr. Massey replied negatively, saying that the pipeline was only able to move limited amounts of water in a short period of time. Water Superintendent Ed Garafla added that the pipeline would move 45.000 gallons per minute, which would reduce the flooding somewhat but not significantly. In response to Mr. Kelly's question, Mr. Massey stated that Coastal Bend Bays and Estuaries Program was interested in extending the discharge point in the future to other ocations due north. This could increase the productivity of the entire delta area. Mr. Kelly stated that if the project was expanded to the north, then he asked staff to consider ways that �ould provide flood relief upstream. Mr. Massey answered that the Corps feasibility study was considering ways to reduce flood damage, and this project was part of the feasibility study. In response to Mr. Garcia -s question, Mr. Massey replied the Council would receive data on what went over the dam as well as what went through the pipeline. Minutes Regular Council Meeting )ctober 25. 2005 - Page 8 Mayor Garrett asked for public comment. Mr. Johnny French, 4417 Carlton, complimented Council Member Scott and Water Superintendent Ed Garai'ia for their participation on the Nueces Planning Program. and pointed out that the Rincon project could potentially. compliment other programs. He highlighted the diversion of wastewater from yBison Wastewater Treatment Plant as a complimentary project because it affected the Rincon )elta. Ms. Pat Suter. 1002 Chamberlain. spoke in support of the Rincon diversion project. City Secretary Chapa polled the Council for their votes as follows: 1 8.a MOTION NO. 2005-374 Motion authorizing the City Manager or his designee to execute a construction contract with Ramos Industries, Inc., of Pasadena, Texas in the amount of $7,223,581 for the Rincon Bayou Diversion Project Intake Pump Station, Diversion Pipeline, and Discharge Structure Hondo Creek Bridge Replacement Project (Base Bid #3). -Elie foregoing motion was passed and approved with the following vote: Garrett, Chesney. Garcia, Kelly. Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent. 8.1, MOTION NO. 2005-375 Motion authorizing the City Manager or his designee to execute a Project Management/Inspection Contract with Anderson Group Construction Management, Inc., of Corpus Christi., Texas in the amount of $65,490 for the Rincon Bayou Diversion Project Intake Pump Station. Diversion Pipeline, and Discharge Structure Hondo Creek Bridge Replacement Project. 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. 18 MOTION NO. 2005-376 Motion authorizing the City Manager or his designee to execute a Construction Materials Engineering Laboratory's Inspection and Materials Testing Services Contract with Kleinfelder, Inc., of Corpus Christi, Texas in the amount of $32,270 for the Rincon Bayou Diversion Project Intake Pump Station, Diversion Pipeline, and Discharge Structure Hondo Creek Bridge Replacement Project. 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. Nlayor Garrett opened discussion on Item 19 regarding the Southside Water Transmission Main project, Phase 6. City Engineer Angel Escobar explained that today's action would authorize Urban Engineering to begin the design phase of the project for $1.4 million. Phase 6 f the project would bring the water line from Whitley Road. across the Laguna Madre, and Minutes - Regular Council Meeting )ctober 25. 2005 - Page 9 along Sea Pines Boulevard to an existing water line along Park Road 22. Overall, the city would have approximately 20,000 linear feet of 42 -inch water line crossing the Laguna Madre, and an Additional 4,000 directionally drilled underneath the Intercoastal Canal. Upon completion, he said this project would improve the water volume and pressure on the Island. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: I MOTION NO. 2005-337 Motion authorizing the City Manager or his designee to execute Amendment No. 4 to the Contract for Professional Services with Urban Engineering, of Corpus Christi, Texas in the amount of $1,411,580 for a total re -stated fee of $3,879,342 for the Southside Water Transmission Main. Phase 6. The foregoing motion was passed and approved with the following vote: Garrett, Chesney. Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". Mayor Garrett opened discussion on Item 20 regarding the Corpus Christi Ship Channel Water and Wastewater Utility Crossing project. City Engineer Escobar explained that due to the tuture deepening of the Corpus Christi Ship Channel, it has become necessary to lower the existing lines approximately 30 feet deeper than they currently are. The new contract would also install new water and wastewater lines in the channel at the lower depth to service the North Beach area. Next summer. he said staff would bring an item for Council consideration to remove the existing crossing with water. wastewater, and gas lines. Mr. Kelly asked when the contract would be let if the Council approved this item today. Mr Escobar replied the contractor should be on board in the latter part of November, with scheduled completion in March or April 2006. Mr. Kelly noted that he had discussed the possibility of constructing a new wastewater treatment in the Hillcrest area, and if the city were to construct a plant on the northside of the channel, he asked if the city could combine the two projects. Mr. Escobar answered negatively, saying it was necessary to replace the force main and the lift station serving North Beach immediately due to their deteriorated state. Mr. Kelly remarked that if the city was going to go to the trouble of digging a tunnel under the ship channel, then it seemed to make sense to put in the necessary piping for a wastewater treatment plant on the north side of the channel. Assistant City Manager Ron Massey replied that most of the potential sites on the north side were further west: thus, any savings would be lost as the pipe had to be moved a greater distance to the actual plant. There were no comments from the public. -itv Secretary Chapa polled the Council for their votes as follows: _'0 MOTION NO. 2005-378 Motion authorizing the City Manager or his designee to execute a construction contract with Akerman Construction, of Purcell, Oklahoma in the amount of $2,883,568 for the C orpus Christi Ship Channel Water and Wastewater Utility Crossing Revised and Re -Bid fin- the Installation of a New Utility Crossing (Base Bid One). The foregoing motion was passed and approved with the following vote: Garrett, Chesney. Cooper, Garcia. Kelly. Kinnison, Marez, Noyola, and Scott, voting "Aye". \linutes Regular Council Meeting October 25, 2005 - Page 10 Mayor Garrett opened discussion on Item 21 regarding contracts for various forms of nnsurance coverage. Human Resources Director Cynthia Garcia explained that the city requested proposals for insurance coverage for commercial property, including electronic equipment, boilers, and machinery; windstorm, hurricane, and hail; excess windstorm, hurricane, and hail; flood and excess flood; catastrophic beet: airport liability and excess airport liability; excess gas utility liability; 'fB clinic van automobile liability insurance; and general liability insurance for the Columbus Ships. The commercial property proposed for coverage is valued at $385,722,833. Proposers were asked to submit proposals for any or all areas for which insurance coverage was heing secured. Ms. Garcia reported that HRH submitted proposals for commercial property and employee dishonesty. McGriff, Seibels & Williams submitted proposals for catastrophic fleet, commercial property. excess windstorm, and excess flood. The Texas Municipal League (TML) submitted two proposals for commercial property. excess flood and wind, and proposals in every other category. Ms. Garcia said the proposals were evaluated using both the bundled and unbundled approach based on the criteria specified. Ms. Garcia stated that staff recommended that the city enter into contracts with the following insurance carriers: HRH for employee dishonesty coverage; McGriff, Seibels & Williams for commercial property. excess windstorm, and excess flood; and TML for catastrophic fleet, airport liability insurance, excess airport insurance; excess gas utility insurance. excess gas utility automobile liability insurance. TB Clinic Van automobile liability insurance. and general liability insurance for the Columbus Ships/Museum. Additionally, Ms. Garcia noted that first level windstorm. hurricane. and hail coverage was only offered through the Texas Windstorm Insurance Association, and first level Flood insurance was only offered through the National Flood Insurance Program. Thus, staff recommended that coverage for these two insurance types be acquired through McGriff. Seibels & Williams, the recommended provider for excess windstorm and excess flood insurance. Ms. Garcia stated these recommendations provided the lowest cost available per million dollars of coverage in each category Ms. Garcia explained that when the team was evaluating proposals, they looked not only at premiums, but also at coverage levels and deductibles. The recommended mix of coverages will be at an estimated cost of $1,707,601, an increase of 4.7 percent increase over the cost of premiums paid during FY 2005. The 4 7 percent increase provides additional coverage for the city in excess windstorm insurance (increasing the coverage from a total of $71.4 million to $200 million); decreases the deductible for employee dishonesty and commercial crime insurance trom $100,000 to $15,000; and adds catastrophic fleet insurance, a new type of insurance coverage for the city. Mayor Garrett asked for public comment. Mr. Bill Kopecky, 3609 Topeka, asked if employee dishonesty insurance was similar to bonding. Ms. Garcia replied employee dishonesty covered fraud, theft, forgery, alteration. computer fraud, theft disappearance, and destruction. t'ir. Secretary Chapa polled the Council for their votes as follows: Minutes — Regular Council Meeting t)ctober 25, 2005 - Page 11 I MOTION NO. 2005-379 Motion authorizing the City Manager or his designee to execute a contract with HRH for Employee Dishonesty insurance coverage; McGriff, Seibels & Williams for Commercial Property. Excess Windstorm and Excess Flood insurance; and Texas Municipal League for Catastrophic Fleet, Airport Liability insurance, Excess Airport insurance, Excess Gas Utility insurance. Excess Gas utility Automobile Liability insurance, TB Clinic Van Automobile Liability insurance and General Liability insurance for the Columbus Ships/Museum. Additionally, because first level Windstorm, Hurricane and Hail coverage is only offered through the Texas Windstorm Insurance Association, and because first level Flood insurance is only offered through the National Flood Insurance Program, that coverage for these two insurance types be acquired through McGriff, Seibels & Williams, the recommended provider of Excess Windstorm and Excess Flood insurance. The term of these agreements is November 4, 2005 through November 3, 2007 with two one-year renewals. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper. Garcia. Kelly. Kinnison. Marez, and Scott, voting "Aye"; Noyola abstained. Mayor Garrett opened discussion on Item 22 regarding the South Texas Aggregation Project (STAP)'s intent to enter into negotiations for base Toad electrical power needs for a ten - ,ear period. Assistant City Manager Oscar Martinez stated this was a follow-up to the presentation made by Mr. Geoffrey Gay with Lloyd Gosselink last week. He said the city has been a STAP member since 2004. and has procured electricity through this group. The city has experienced a savings of approximately 20 percent compared to the "price to beat", the cost of electricity before deregulation. The Council passed a resolution two weeks ago allowing STAP to submit an RFP for the procurement of electricity in 2006 and 2007. Mr. Martinez reported that STAP was currently considering securing the processing and acquisition of electricity through coal, a more stable energy source over time compared to the cost of natural gas. This item was an attempt to procure long-term capacity to acquire electricity services via coal generation to reduce the city's cost for natural gas. He said the coal option would only cover 55 percent of the city's base load need; the balance would be purchased according to the STAP agreement for natural gas purchases. The first year savings were estimated at under $600,000 through the tenth year; in the tenth year, the savings could be over $22 million. Over ten years, the model predicts the savings could be up to $10 million in the cost of electricity. Mr. Martinez emphasized that today's resolution did not bind the city to any contractual agreement; rather, the city would have an opportunity to review the contract and then make a determination whether the cost savings were justified. Mayor Garrett asked for public comment. Mr. Abel Alonzo, 1701 Thames, asked how 'tali determined the amount of savings. Mr. Martinez replied the savings was determined with a model based upon the ten year average of natural gas. and projections based on the futures Minutes — Regular Council Meeting October 25, 2005 Page 12 purchase of natural gas. compared to the relatively stable costs of coal. Mr. Alonzo thanked Mr. Martinez for his work. Mr_ Marez stated that he felt the city should continue to explore alternative energy sources such as wind power in the future. Mr. Martinez replied this was a good point, noting that recent legislation on energy directed the company to look at alternative fuel sources within the en -year period. He said the city would want to contract with as many options as available, Mr_ Noyola asked it there was any way that the city could obtain a long-term, fixed price contract for gas. Mr. Martinez replied the city was in the final year of its current gasoline supply contract. He said the cit\. could explore this option, depending upon the willingness of the pro \.iders to offer this type of contract. In addition. he said the city was considering joining with :ether intergovernmental agencies to jointly procure gasoline to lower the cost. City Secretary (-papa polled the Council for their votes as follows: RESOLUTION 026531 Resolution approval of South Texas Aggregation Project's Letter of Intent to enter into negotiations for a capacity contract with the owner of Coal (including Texas Lignite) Generation to supply the base load electric power needs (approximately 55%-60% of total energy needs) for STAP members over a 10 -year period. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye". Mayor Garrett opened discussion on Item 23, a petition filed to repeal Ordinance No. 026526 regarding the elimination of vehicular traffic on the beach in front of the Padre Island Seawall. City Secretary Chapa explained that the city charter, through the initiative and referendum process, allowed citizens to request that the Council reconsider ordinances they have passed. The referendum process required five signatories to present their request in writing to the Council. On October 18, 2005. six citizens filed such a request in the City Secretary's Office regarding the beach closure ordinance. Mr. Chapa said the Council had the following options: to accept the request and repeal the ordinance; to deny the request; or to take no action. If the ('ouncil decided to deny the request or to take no action. then he would provide petition pages to the signatories for circulation among the registered voters in the city. The signatories would have 90 days to return with a valid petition that would force an election on the issue. Mayor Garrett called for public comment. Mr. Abel Alonzo, 1701 Thames, cautioned against the abuse of the referendum process. saying it was too costly to hold frequent elections. The following individuals asked the Council to reconsider the passage of the beach closure ordinance (Ordinance No. 026526): Pat Suter, 1002 Chamberlain; Johnny French, 4417 (`arlton; Michelle Slareg. residing on Ilawksnest Bay Drive; and Bill Kopecky, 3609 Topeka. Mr French and Mr. Kopeck\ were in favor of amending the city charter to prohibit beach closures unless approved by the voters. Minutes - Regular Council Meeting f.;ctober 25.. 200.5 Page 13 Mr. Noyola spoke in favor of amending the City Charter to prohibit beach closures without voter approval. City Attorney Fischer stated an election to amend the charter could be held no earlier than November 2006. Mr. Noyola added that he stood firm on the Council's decision to close the beach in front of the Padre Island Seawall to vehicular traffic, but was willing to consider a charter amendment to prove the Council's commitment not to close any Additional beaches Mr. Marez spoke in support of amending the City Charter regarding beach closures. He also spoke in favor of repealing the ordinance today and letting the voters decide. To defray the _ost. he suggested holding a joint election with another entity. Mr. Scott spoke in support of prohibiting vehicles on the beach in front of the Padre Island Seawall. He said closing the beach in this area was a good thing that would benefit the community. He disagreed with those who stated that bollards were a safe way to route traffic without closing the beach. Mr. Kinnison asked the petitioners present if they would drop the petition effort if the Council agreed to include a charter provision on the ballot during the April 2007 Council election. Mr. Kopecky replied the charter amendment would only address future closures. He was still opposed to the beach closure in front of the Padre Island Seawall; thus, he felt the referendum petition would still need to continue. Mr. French and Ms. Suter agreed with Mr. Kopecky Mr. John Adams, 307 Katherine, spoke against the proposed ordinance prohibiting vehicular traffic on the beach near the seawall. He was concerned the action would set a precedent for other beach closures. He was uncertain whether he could agree to withdrawing the referendum petition. Mayor Garrett asked staff to brief the Council at their next meeting on the process for a charter amendment regarding beach closures. The Council decided to take no action on this item. 23. NO ACTION TAKEN Consideration of a request filed by five petitioners pursuant to Article I, Section 1 of the City Charter. to repeal Ordinance No. 026526, regarding the elimination of vehicular traffic on the beach seaward of the Padre Island Seawall, the direction of travel between Whitecap Boulevard and Padre Balli Park; establishing a pedestrian safe area. * * * * * * * * * * * * Mayor Garrett referred to the presentations on the day's agenda. The first presentation was Item 24, a demonstration of the new voting equipment by Nueces County Clerk Diana Barrera. Ms. Barrera said the new equipment, called an eSlate, would bring Nueces County into compliance with the Help America Vote Act and the Americans with Disabilities Act. She said oters who were visually impaired or blind may use headphones to hear the ballot read, or could read the instructions in Braille. In addition, persons with limited upper -body movement or control may use special switches or their own "sip and puff' device to cast ballots using their hreath. Minutes - Regular Council Meeting +)ctober 25, 2005 Page 14 Ms. Barrera reviewed the electronic voting process. First, the voter would present their oter identification to the election official. The official would give the voter a four -digit number code. The code would tell the system the voter's precinct number to bring up the correct set of vandidates and propositions for that precinct. She emphasized that the code cannot be linked to the voter: the system was completely private. Second, the voter would use the SELECT wheel to highlight the language in which they would like to read the ballot. English or Spanish. Third, the voter would enter the four -number code they received when checking in to bring up the correct 'allot on the screen. Fourth, the voter would turn the SELECT wheel to highlight and select their choices on the ballot. Fifth. after voting in the last contest on the ballot, a Ballot Summary ,cretin would appear listing all the choices the voter had made, informing them if they missed oting in any race. or allowed them to correct an error. Once the voter completed their review, ,hey would press the CAST BALLOT button to finish voting and place the ballot in the electronic ballot box. Ms. Barrera explained there were three levels of security for the system, a judge's booth .ontroller in a computer chip and a flash card, and in a computer chip in the equipment. When the polls closed. the election judges would bring their judge's booth controller to the County so they can upload the data from the flash card. For those voters requiring a mail ballot, Ms. Barrera stated the system would design ballots to be printed on demand. The absentee vote by mail process would remain intact. Ms. Barrera stated the County was engaging in a public information campaign to educate voters on the new equipment. She said during joint elections, the ballot would continue page by page until the voter had completed all the associated ballots. Mr. Marez asked Mr. Chapa if the city would be using this equipment in its elections. Mr Chapa responded affirmatively. saying it would be used in the next City Council election. Mr. Chapa added that the County had purchased the voting equipment using federal funds, so staff was hoping the city's expense would be lower in future elections. He said the highest cost involved in elections was the printing of the ballots. * * * * * * * * * * * * * The next presentation was Item 26, a quarterly report by the Corpus Christi Convention and Visitors Bureau (CVB). CVB President and CEO Tom Galyon introduced Ms. Wilma Harvey. their new nature -based tourism sales manager who began working last Monday. Mr. Galyon then discussed the ('VB's new reporting system. He said they consolidated all the reports 10 provide an overview of tourism's effects on the community. He said the report included two new measures, the Consumer Price Index and the Consumer Confidence Index, because these economic indicators affected the amount of travel and tourism. In August, Mr. tialvon reported the city's occupancy levels were down slightly due to the beginning of the school year, l le said revenues were up by 29 percent compared with the same time last year. He Minutes - Regular Council Meeting )ctober 25. 2005 - Page 15 said the CVB planned to provide these reports on a monthly basis in the Council's information packets. Mr. Galyon mentioned a number of CVB promotions, including the fun/refund promotion and the new promotional miniguide. He also referred to a number of media articles featuring Corpus Christi in Kiteboarding Magazine and City Sports Magazine. Mr. Galyon noted that the Texas Travel industry Association meeting was postponed due o Hurricane Rita. It was being rescheduled for October 31 through November 3, 2005. Mr. Galyon also provided information on the United States Bowling Congress (USBC). He said the CVB introduced USBC officials to local industry partners on October 19, 2005, and also viewed a USBC Open Championships video. He said sponsorship and advertising :opportunities were presented to the 50 industry representatives who attended the meeting. In addition, the CVB held a hospitality/customer service training, which would be implemented in January 2006. He highlighted the Team Corpus Christi concept, a small team of industry representatives who would randomly_ select restaurants and other venues to inform them about theLonference. Mr. Kinnison asked to meet with Mr. Galyon next week about the CVB's reported hotel occupancy rates as they correlated to Hotel Occupancy Tax revenues. He said the CVB was reporting higher occupancy rates, but the Hotel Occupancy Tax revenue levels did not reflect the increase. Mr. Galyon suggested that they include a number of hoteliers in the meeting to discuss the numbers. Mr. Garcia asked Mr. Galvon to provide a forecast on how the CVB's marketing efforts increased tourism. * * * * * * * * * * * * * Mayor Garrett called for public comment. Mr. Domingo Ibarra, president of the Corpus Christi Police Officers Association at 3122 Leopard Street, asked the Council to increase the number of police officers on the force, saying the force was currently 40 officers short. He also asked that a new community-based labor coalition be recognized to work with management privately to deal with the issue. Mayor Garrett and Mr. Scott suggested that the new coalition meet with the City Manager to develop a resolution for the Council's consideration. Mr. Scott also asked that the Big Brothers/Big Sisters organization be reactivated. Mayor Garrett called for a brief recess to present proclamations. ************* The Council returned from recess. Mayor Garrett referred to Item 25, a quarterly report presentation by the Corpus Christi Regional Economic Development Corporation (EDC). EDC President and CFO Roland Mower reported on four major projects in the last quarter. First, he Minutes -- Regular Council Meeting tctoher 25.2005 — Page 16 discussed the recent Industrial Asset Management Council event hosted by the EDC on October 2005. The group was comprised of corporate end users, corporate real estate executives, .ervice providers, and other economic developers. He said 256 people registered for the onference, with the corporate real estate sector comprising the highest attendance in conference history He thanked City Manager Skip Noe, Assistant City Manager Ron Massey, and staff for heir assistance in making the event a success. He described each of the planned events, saying 'he city-° s premiere venues received great exposure. He also said the conference attendees -raised the Omni Hotel for its high level of service_ Second, Mr. Mower updated the Council on business prospects. He discussed the status of Project P-Vax, a shipping pallet company projecting to invest $100 million in the Port area. I he project was moving slowly, however, but the Port was aggressively pursuing the project. In addition, the EDC was working on landing an $80 million distribution center project. He said { orpus Christi was one of two communities being considered for the project. Staff was anticipating several site visits by key members of the leadership team prior to making their final Jecision next year. In addition, he mentioned the following prospects: an offshore LNG fabrication facility, local medical services company: biotech company; and a prospect referred f)irector of Economic Development Irma Caballero seeking a gulf port location. Third, Mr. Mower discussed the progress on the proposed Memorandum of i understanding between the city, the 4A Board and the EDC. He said city staff had drafted the MOU for review by the EDC's attorney. They anticipate taking the MOU to the EDC Board and the 4A Board for consideration at their next meetings. He said the EDC Board was looking forward to having their organization's duties and responsibilities better defined. Fourth, Mr. Mower discussed plans for the Economic Summit to be held on January 30, 2006. He said the EDC had received a single proposal from Angelos Angelou Economics from -kustin. TX, a top economic development firm in the State. He said the EDC was working closely with their core partners to develop a program that would meet the needs of the community. Council members asked questions about attracting biotechnical companies and the status orf tilling former EDC executive John Plotnik's vacancy. Mayor Garrett referred to Item 27, a presentation on the 4th Quarter FY 2004-05 Budget/Performance report given by Assistant Budget Director Eddie Houlihan. Mr. Noe emphasized that the data was unaudited and preliminary; thus, it was subject to change. Mr, l loulihan reported 101.2 percent of the budgeted revenues was received. He said the city had received 51,750.000 more than projected due mainly to property tax, Municipal Court revenue, and Solid Waste revenue. He noted that sales tax receipts reflected a 6.6 percent increase over the prior year. Solid Waste Services revenue had also increased as a result of increased activity from two large vendors, and Municipal Court revenues remained strong. He noted, however, that franchise fees were substantially lower than budgeted mainly due to a decrease in the number of lines reported for telecommunications fees. Minutes - Regular Council Meeting t; )ctober 25. 2005 - Page 1 Mr. Houlihan reported that 97.8 percent of the budget had been expended. The budget was able to absorb about $900..000 less than projected, despite increases in fuel prices and drag- tp pay. He cautioned that the city might not be able to absorb the increase in fuel prices this fiscal year Regarding the unreserved fund balance. Mr. Houlihan said the fund balance had increased by more than $4,000.000, or 10.7 percent. He said this was the first time the city had exceeded its ten percent goal. Mr. Houlihan presented a number of graphs depicting year-to-date (YTD) revenues and V' CD expenditures from various sources. Mr. Houlihan discussed the status of the enterprise funds. He said the water fund had increased in revenues, mainly due to the dry weather the city had been experienced in the latter part of the year. Airport revenues had increased due to the overall facility improvements. The ambulance fund revenues had increased mainly because the fee structure had resulted in increased Medicare and Medicaid payments and higher call volume. He noted that next fiscal ear. the ambulance fund was being absorbed into the general fund. Finally, he said golf revenues were slightly off from budget but higher than the previous year. Mr. Houlihan reviewed a number of graphs depicting YTD revenues and expenditures in the enterprise funds. Mr. Houlihan reported on the status of the internal service funds, which were budgeted allocations for services to internal customers. He said the stores fund revenue has continued to increase due mainly to staff keeping high volume items in stock and better communication with departments. Maintenance service revenues had increased due to increased fuel prices. Finally, the Risk Management fund reflected lower than budgeted expenditures for health insurance, general liability, and workers' compensation. Mr. Houlihan reviewed a number of graphs depicting YTD revenues and expenditures in the internal service fund. Mr. Houlihan discussed the special revenue funds. He said the hotel occupancy tax fund had seen a great month in July that boosted revenues above projections, with revenues exceeding $1 million. The Reinvestment Zone Fund No. 2 also experienced a revenue increase due to very favorable appraised values in the Packery Channel area. The Crime Control District also saw a revenue increase mainly because sales tax revenue was budgeted conservatively. Mr. Houlihan reviewed a number of graphs illustrating the YTD revenues and expenditures in the special revenue funds. In conclusion, Mr. Houlihan stated that the first quarter report for FY 2005-06 would be available in mid-December. Mr. Scott complimented the budget staff for providing the quarterly report so quickly. ************* Mayor Garrett referred to Item 28, a presentation on the transition from Re-engineering to a city-wide Optimization Program. Assistant City Manager Oscar Martinez stated the purpose of the presentation was to prepare the Council for the possible consideration of a funding plan in the next week or two. The funding plan would begin an initiative to capitalize on the prior year's Minutes— Regular Council Meeting lctober 25, 2005 - Page 18 :nvestment in Re-engineering and move it into a truly measurable return on investment. Staff hoped to achieve this goal by using the technical tools provided through Re-engineering and Training to sustain the service improvements and maintain them on a routine basis. Mr. Martinez provided a brief history on the Re-engineering process. The Council ,tonsidered privatizing utilities in 1999, and the city hired EMA to evaluate the options. The Re- engineering process was determined to offer greater savings and flexibility. The Council approved the Re-engineering concept, and EMA was hired in 2001. He provided a timeline ,Ilustrating how Re-engineering was introduced into the city's service delivery departments (e.g. water/wastewater. airport (technology). storm water. gas ,etc.). The process included a three - tiered approach comprised of technology, a skill -based pay program, and improved business processes Mr. Martinez reviewed the OPT-imization Program components intended to capitalize on the prior investment in Re-engineering. The first component was a performance management process. In this process, staff would use the technology tools introduced during Re-engineering, PeopleSoft, MAXIMO. SCADA, and THE, to provide the hard data to support their decisions. In addition.. Mr. Martinez stated that a "balanced scorecard" model was being introduced. En this model, the system would depend on lagging indicators such as customer feedback and financial reports. as well as leading indicators to constantly evaluate the city's business processes to adapt to the changing workplace. The scorecard drives daily decisions that align with identified strategies. The process would move the city toward performance management "best practices`' by measuring outcomes, promoting performance management, and leveraging data from our business systems. Tailored scorecards would focus on the appropriate level of detail tor the Council and City Manager. the Assistant City Managers, Directors, and Coordinators. Mr. Martinez discussed the professional development component of the OPT-imization process. He said staff development supported the execution of city business strategies. Staff development included leadership training and coaching on managing with the scorecard, team decision making. execution, and problem resolution Mr. Martinez covered the fourth component of OPT-imization, system improvement. He said the city's business strategy drives service improvement. Thus, the focus was designed to shift to departmental services by supporting direct delivery departments, promoting interdepartmental work coordination, and expanding work management systems to internal services. In addition, he said staff was developing a citywide vehicle and equipment strategy for maintenance and replacement. Finally. Mr. Martinez said a goal was to align the OPT-imization program with Council and staff goals. The Council's goals revolved around budget and financial policy design and infrastructure improvements. Staffs goals centered on performance management across departmental lines; developing and executing business process management policies; workforce sustainability and professional development; capitalizing on the WiFi program; expanding ustomer service goals at the call center. and vehicle replacement and CIP planning. Minutes Regular Council Meeting )ctober 25, 2005 - Page 19 In summary; Mr. Martinez stated that OPT-imization was an ongoing, continuous improvement program comprised of performance management, professional development, and service improvement. He noted that within the next two weeks, staff would be bringing an item torward for Council consideration of the entire program. Mr. Scott asked how much money the city had spent on the EMA contract to date. \ssistant City Manager Ron Massey replied the city had spent $4 million to date, but noted that half of this cost was for software purchases. Mayor Garrett referred to Item 29, a fourth quarter report on the health benefits/risk management fund. Director of Human Resources Cynthia Garcia reported that the total claims tiled in FY 2005 were 74,535, a 6.7 percent increase over those filed in FY 2004. Per individual plan. Citicare increased by 6.4 percent, Fire increased by 11.5 percent, and Public Safety increased by 1.9 percent. Ms. Garcia reported that medical claims paid in FY 2005 were 16,685, a 13.6 percent increase over FY 2004. Per individual plan, Citicare increased by 19.4 percent, Fire by 18.1 percent, and Public Safety decreased by 12.5 percent. She said pharmacy costs for all plans increased by 17.4 percent over FY 2004-05. Ms. Garcia stated that the total average cost per claim was $223.82 in FY 2005 with all plans cornbined. In the Citicare plan, the average cost per claim was $194.18; the average cost per member was S389.69. a 20.19 percent increase over last fiscal year. In the Fire plan, the average cost per claim was $150.93; the average cost per member was $443.25, a 16.8 percent increase compared with last fiscal year. In the Police plan, the average cost per claim was SI76.68; the average cost per member was $485.92, a 4.74 percent decrease. Ms. Garcia reported on the status of the workers' compensation and liabilities fund. She said year-to-date claims were down for the second consecutive year, with 1,009 claims in FY 200. She said street department claims decreased by 73.8 percent, while police department claims were down by 50 percent. Ms. Garcia reported the dollars paid for the period ended July 31, 2005 decreased by 39.74 percent, with a cost amount of $842,385. In addition to this amount, the city paid S949,268 for FY 2004 claims, as well as $515,310 for years prior to FY 2004. Ms. Garcia reported on incurred costs by type of injury. The cost for strains was $409,819, and $127,500 for sprains. Ms. Garcia stated the number of general liability claims was down 16.67 percent, with the street department leading the decrease with 46.71 percent. Incurred costs by department were down by 16.38 percent to $835,896. The dollars paid in FY 2004-05 claims was $1.042,685. For years prior to FY 2004. the amount was $488,595. She emphasized that this was the amount paid in FY 2005 for past year claims. Minutes Regular Council Meeting October ..5, 2005 -- Page 20 M. Garcia discussed a graph depicting the amount paid for claims filed during each fiscal year as of July 31, 2005. She said the graph showed how some claims costs grow in the nears after the claims are filed. The city paid $328,997 in FY 2005, for example, but had incurred costs of $835.896. Ms. Garcia discussed a graph with incurred costs by types of claims. She said vehicle damage costs incurred were $306,491. followed by property damage at $231,098, and policies/practices/contract liabilities at $118,273. In summary, Ms. Garcia stated health costs increased as predicted in FY 2005, and claims costs increased as well. Claims and costs in both workers compensation and general liabilities �.yerc down compared to prior years. * * * * * * * * * * * * * Mayor Garrett called for the City Manager's report. City Manager Noe reported that the first meeting of the twelfth area NIP would be held this evening at 6:00 p.m. at the Brooks AME Worship Center on North Port Avenue. A reception for the Texas Transportation Commission would be held tomorrow from 3:30 p.m. to 5:00 p.m. at the Museum of Science and History. I he Commission would be holding their meeting at the Ortiz Center on Thursday morning at 9:00 a.m Mr. Noe announced that the Council would be holding a workshop on Fiscal Policies on November 1, 2005 from noon to 2 p.m. Mayor Garrett asked about the Columbus ship docked in the port. Mr. Noe replied the Nina had been dry docked for repair work_ Mayor Garrett called for Council reports. Mr. Noyola thanked everyone for the flowers and prayers for his wife in celebration of the birth of their beautiful daughter Valyssa, weighing 5.5 pounds and 19.5 inches long. Mr. Kelly reported that the Council had received a letter from Mr. Yaffee concerning the diversion court that Judge Watts was creating with the County Courts at Law and District Courts on drug charges. Mr. Yaffee was inquiring whether the city would consider participating at the Plass C misdemeanor level. Mr. Kelly said he would like to set up a meeting of the Municipal ('ourt Committee to discuss the possibility There being no further business to come before the Council, Mayor Garrett adjourned the t'ouncil meeting at 1:24 p.m. on October 25, 2005. **+**********