Loading...
HomeMy WebLinkAboutMinutes City Council - 02/24/2009I 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 February 24, 2009, which were approved by the City Council on March 10, 2009. WITNESSETH MY HAND AND SEAL, on this the 10th day of March, 2009. Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting February 24, 2009 - 10:00 a.m. PRESENT Mayor Henry Garrett Mayor Pro Tem Larry Elizondo, Sr. Council Members: Melody Cooper* Mike Hummel) Bill Kelly Priscilla Leal Michael McCutchon John Marez Nelda Martinez *Arrived at 10:17 a.m. City Staff: City Manager Angel R. Escobar 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 Reverend Philip Douglas with Unitarian Universalist Church of Corpus Christi and the Pledge of Allegiance to the United States flag was led by Council Member Mike Hummel). City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Garrett referred to Item 2 and the following board appointments were made: Clean City Advisory Committee Theresa Klein (Appointed) Leadership Committee for Senior Services Donna Cisneros (Reappointed) Dotson Lewis, Jr. (Reappointed) Theresa Swirenko (Reappointed) Michael Ramsey (Appointed) Cecilia G. Huerta (Appointed) Sheri Darveaux (Appointed) Adelfa M. Martinez (Appointed) Yaron Rabinowitz (Appointed) Community Youth Development (78415) Steering Committee Katie Childs (Appointed) Rick Greenfield (Appointed) Park and Recreation Advisory Committee Carlos Haney (Appointed) Planning Commission John S. Taylor (Appointed) Mayor Garrett referred to Item 24 regarding the 2nd Quarter FY2009 Report of the Health Benefits/Risk Management Fund. Director of Human Resources Cynthia Garcia referred to a powerpoint presentation including plan enrollment; medical and pharmacy expenses; total medical and pharmacy expenses by subscriber; cost per employee performance; cost per employee; total health plan expenses; annual budget versus 2nd quarter actuals; workers' compensation; general liability; and vehicle accidents. Minutes — Regular Council Meeting February 24, 2009 — Page 2 The following topics pertaining to this item were discussed: total amount spent on pharmacy expenses; cost per employee; collections versus the percent budgeted; city and participant contributions; the amount collected without the City's contribution; whether the plans are breaking even; the third party administrative contract; and what is attributed to the lower amounts of vehicle accidents and worker compensation claims. Mayor Garrett opened discussion on Item 25 regarding an update on the Police/Fire Group Health Insurance Program. Assistant City Manager Oscar Martinez introduced presentation team members Officer Mike Staff with the Corpus Christi Police Officers Association (CCPOA) and Randy McGraw. Mr. Martinez referred to a powerpoint presentation including a history of premium increases; concerns from the Police and Fire Unions; the Council directive to meet with representatives to reach a consensus on methodology; the meeting dates; the key principles of understanding; discussion results; review of actual revenues and expenditures for all plans in the current year; net balance of revenues less expenditures; staff recommendation; and considerations. The following topics pertaining to this item were discussed: setting up meetings with the unions within the 90 day period; whether staff communicated with both union groups; when the actuary analysis is updated; an explanation of GASB 45; whether GASB 45 requires just reporting and not funding; the reason the City is considering funding GASB 45; how other municipalities are addressing GASB 45; separation of the three funds; expensing the liability for GASB 45; the impact of GASB 45 on the premiums; how the premium increases for Police and Fire were determined; the results of combining the plans; whether combining Police and Fire in Citicare would increase premiums for other City employees; the CCPOA's position on joining Citicare; when the City had to borrow money from other funds to balance the insurance fund; the disagreements with the unions with respect to the collective bargaining agreements; the equation to predicate future retiree health care costs; consideration of an irrevocable trust; and other options for GASB 45. Mayor Garrett called for a brief recess to present proclamations. ************* Mayor Garrett called for consideration of the consent agenda (Items 2 —17.1). Mr. Johnny French requested that Item 7 and 13 be pulled for individual consideration. Council members requested that Item 13 be pulled for individual consideration. City Secretary Chapa announced that Item 4 was being pulled by staff for amendment. City Secretary Chapa polled the Council for their votes as follows: 2. RESOLUTION NO. 028073 Resolution authorizing the submission of a grant application in the amount of $68,491 to the State of Texas, Office of the Governor, Criminal Justice Division for Year One funding of a Sex Offender Investigative Unit grant in the Police Department with a City match of $7,745, for a total grant application of $76,236, and authorizing the City Manager or his designee to apply for, accept, reject, alter or terminate the grant. The foregoing resolution was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye'; Marez was absent. 3.a. MOTION NO. 2009-046 Motion authorizing the City Manager or his designee to accept a supplemental grant in the amount of $47,500 from the Texas Automobile Theft Prevention Authority (ATPA) to Minutes — Regular Council Meeting February 24, 2009 — Page 3 purchase equipment for the motor vehicle theft enforcement unit within the Police Department and to execute all related documents. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 3.b. ORDINANCE NO. 028074 Ordinance appropriating $47,500 from the Texas Automobile Theft Prevention Authority (ATPA) in the No. 1061 Police Grants Fund. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 5. MOTION NO. 2009-047 Motion authorizing the City Manager or his designee to execute documents with Trust for Public Lands and the Coastal Bend Bays and Estuaries Program, for the purchase of48.91 acre tract of land situated partially in Lot 3, Lot 4, Lot 11, Lot 12, Lot 17, and Lot 18, Section 32 and Lot 17, Section 31, Flour Bluff and Encinal Farm and Garden Tracts, to extend the closing date of the Agreement of Sale, assign the Agreement of Sale to Coastal Bend Bays and Estuaries, and execute new Agreement of Sale with Coastal Bend Bays and Estuaries Program. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 6. MOTION NO. 2009-048 Motion authorizing the City Manager or his designee to execute Amendment No. 1 to the Contract for Professional Services with LNV Engineering of Corpus Christi, Texas, in the amount of $123,584 for a revised fee of $138,584 for the Naval Air Station (NAS) Corpus Christi Effluent Reuse Force Main project for design of a new effluent force main. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 8.a. MOTION NO. 2009-050 Motion approving the Sanitary Sewer Collection Line Extension Construction and Reimbursement Agreement submitted by Extreme Homes of Texas, LLC, owner and developer of Maple Hills Subdivision, Unit 5, located south of Up River Road and east of McKenzie Road, for the upsizing of 718 -linear feet of PVC sanitary sewer collection line from 8 -inch diameter to 10 -inch diameter. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 8.b. ORDINANCE NO. 028077 Ordinance appropriating $5,390.39 from the No. 4220 Sanitary Sewer Collection Line Trust Fund to reimburse Extreme Homes of South Texas, LLC, for the upsizing of 718 -linear feet Minutes — Regular Council Meeting February 24, 2009 — Page 4 of PVC sanitary sewer collection line from 8 -inch diameter to 10 -inch diameter for the development of Maple Hills Subdivision Unit 5, as specified in the Sanitary Sewer Collection Line Extension Construction and Reimbursement Agreement. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. MOTION NO. 2009-051 Motion approving the Street Construction and Reimbursement Agreement submitted by Extreme Homes of Texas, LLC, owner and developer of Maple Hills Subdivision Unit 5, located south of Up River Road and east of McKenzie Road in the amount of $18,911.40, for the upgrading of 5,587 -square yards of street pavement from a Residential Collector cross section to a Neighborhood Collector cross section. (BOND ISSUE 2004) The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marezwas absent. 10. ORDINANCE NO. 028078 Ordinance abandoning and vacating a 10,033.21 -square foot portion of an existing utility easement out of Boat Hole Marina Lot 1, Block 1, south of the Skipper Lane public street right-of-way; requiring the owner, S & G Marina, LLC, to comply with the specified conditions. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 11. ORDINANCE NO. 028079 Ordinance abandoning and vacating a 34,198 -square foot portion of an existing utility easement out of Padre -Staples Mall, Block 1, Lot 1A and Mt. Vernon Subdivision Unit 1, Lot B3, north of and adjacent to the South Padre Island Drive public street right-of-way; requiring the owner, Corpus Christi Retail Venture, L.P., to comply with the specified conditions. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 12.a. MOTION NO. 2009-052 Motion approving the Sanitary Sewer Lift Station Construction and Reimbursement Agreement submitted by CNM 37, L.L.C., owner and developer of the Thirty Seven Industrial Park, located south of Interstate Highway 37 and east of Southern Minerals Road, for the upgrade of the Highway 9 Master Plan Lift Station, including all related appurtenances. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marezwas absent. Minutes — Regular Council Meeting February 24, 2009 — Page 5 12.b. ORDINANCE NO. 028080 Ordinance appropriating $121,013.22 from the No. 4220 Sanitary Sewer Trunk System Trust Fund to reimburse CNM 37, LLC for the upgrade of Highway 9 Master Plan Lift Station, including all related appurtenances for development of Thirty Seven Industrial Park, as specified in the Sanitary Sewer Lift Station Construction and Reimbursement Agreement. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: 14. RESOLUTION NO. 028082 Resolution nominating Berry Contracting, LP, to the Office of the Governor Economic Development & Tourism, through the Economic Development Bank, for designation as a single retained job enterprise project, under the Texas Enterprise Zone Program under the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code. The foregoing resolution was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 15. ORDINANCE NO. 028083 Ordinance governing City elections in 2009, including appointment and compensation of election officials, voting systems, and central counting station. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 16. ORDINANCE NO. 028084 Amending Section 33-1.02.06 (b) (1), Corpus Christi Zoning Ordinance to allow non - illuminated sandwich board signs orA-Frame Signs on the sidewalks of zero -lot line building in the Six Points area; amending conflicting provisions of the city's comprehensive plan; repealing conflicting ordinances; providing for penalties; and providing for publication. (First Reading — 2/17/09) The foregoing ordinance was passed and approved on its second reading with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 17. MOTION NO. 2009-053 Motion canceling the City Council meeting of March 17, 2009. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 17.1.a. RESOLUTION NO. 028085 Resolution authorizing the City Manager or his designee to accept Federal Aviation Administration Grant Number 3-48-0051-044-2009 in the amount of $966,213 to modify the Minutes — Regular Council Meeting February 24, 2009 — Page 6 Aircraft Rescue and Fire Fighting (ARFF) Station, Phase I at Corpus Christi International Airport and to execute all related documents. The foregoing resolution was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 17.1.b. ORDINANCE NO. 028086 Ordinance appropriating $966,213 from the Federal Aviation Administration for Grant No. 3- 48-0051-044-2009 in the No. 3020 Airport Capital Improvement Fund to modify the Aircraft Rescue and Fire Fighting (ARFF) Station, Phase 1 at Corpus Christi International Airport. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. Mayor Garrett opened discussion on Item 7 regarding the Packery Channel South Parking Lot restrooms. Johnny French, 4417 Carlton, asked questions regarding the parking lot and other facilities at the south Packery Jetty Park. Council Member McCutchon explained that the original plan included a parking lot south of the jetty but the Texas General Land Office stated that no more beaches would be paved. Mr. French asked whether there were additional phases beyond six (6). City Manager Escobar said there would be additional phases. Council Member Hummell asked if the parking lot could be moved further back away from the waterfront. City Manager Escobar said staff is reviewing what that work would entail and will provide that information to the Council. A brief discuss ensued regarding the parking lot. Council Member Hummell asked questions regarding the other amenities south of the jetty. City Manager Escobar stated that the other amenities including a kiosk and a restroom facility are included in the long term planning phases beyond Phase 6. Interim Assistant City Manager Cindy O'Brien explained that the other projects will be completed as funds become available. Council Member Hummell spoke regarding the restroom facilities in Phase I. City Secretary Chapa polled the Council for their votes as follows: 7.a. ORDINANCE NO. 028076 Ordinance appropriating $425,000 of the Unappropriated Fund Balance in the Reinvestment Zone No. 2 Fund 1111 for the Packery Channel Project; changing the FY 2008-2009 Operating Budget adopted by Ordinance No. 027776 to increase appropriations by $425,000. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Elizondo, Hummell, Leal, McCutchon, and Martinez, voting "Aye"; Kelly abstained; Cooper and Marez were absent. 7.b. MOTION NO. 2009-049 Motion authorizing the City Manager, or his designee, to execute a construction contract with Sal -Con, Inc. of Corpus Christi, Texas in the amount of $307,300 for Packery Channel - South Parking Lot Restrooms 2008 Phase 1 Improvements The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Leal, McCutchon, and Martinez, voting "Aye"; Kelly abstained; Cooper and Marez were absent. Minutes — Regular Council Meeting February 24, 2009 — Page 7 Mayor Garrett opened discussion on Item 13 regarding the exportation of groundwater from the Nueces River Basis. John French, 4417 Carlton, spoke in support of the resolution and suggested that the resolution state that the City is opposed to the interbasin transfer of water from the Nueces River Basin by way of recharge dams. Council Member Martinez stated that the City is the last interbasin transfer from Garwood. City Secretary Chapa polled the Council for their votes as follows: 13. RESOLUTION NO. 028081 Resolution on exportation of groundwater from the Nueces River Basin. The foregoing resolution was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, Marez, and Marez, voting "Aye"; Cooper and Elizondo were absent. Mayor Garrett opened discussion on Item 4 regarding an appropriation in developer contributions and interest earnings. City Secretary Chapa explained that this item should be amended to change the interest earnings amount to $208,169.64. Ms. Martinez made a motion to amend the ordinance as stated. The motion was seconded by Mr. Marez. The foregoing motion was passed and approved by the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, Marez, and Marez, voting "Aye"; Cooper and Elizondo were absent. City Secretary Chapa polled the Council for their votes as follows: 4. ORDINANCE NO. 028075 Ordinance appropriating $185,850.21 in developer contributions and $22,319.43 in interest earnings for a sum of $208,169.64 in the No. 4720 Community Enrichment Fund for park improvements. An emergency was declared, and the foregoing ordinance was passed and approved as amended with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, Marez, and Marez, voting "Aye"; Cooper and Elizondo were absent. * ***** * ***** * Mayor Garrett called for petitions from the audience. The following individuals spoke in opposition to the Las Brisas plant: M.C. Reeves; Rebecca Klingensmith, 4325 Ocean Drive; Ron Hamilton, 3636 South Alameda; Ann Smith, 1005 Meadowbrook; Barbara Tharas, 5818 Wicklow; Adriana Leiva, 5917 Rio Vista; Wilson Wakefield, 6026 Killarmet; Carolyn Moon, 4902 Calvin; Judy Loverde, 909 Driftwood Place; John Kelley, 3621 Austin; Emilie J. Olivares, 4205 Dody; Colin Sykes, 309 Aberdeen Ave.; Trudi Morris, 1002 Cairo; Judy Landress242 Montclair Drive; and Susie Luna Saldana, 4710 Hakel. Joan Veith, 5701 Cain Drive, spoke regarding the Police and Fire insurance rate increases. Jack Gordy, 4118 Bray Drive, spoke regarding the 13th Court of Appeals decision on the City Council health insurance and outside attorney fees. Wayne Hodge, 3626 Redwood, asked whether the City Charter allowed for the Memorial Coliseum to be torn down and have something rebuilt in its place. Jerry Garcia, 3900 Gollihar, spoke regarding the language in the youth sports complex leases. Bob Algeo, 15629 Three Fathoms, spoke regarding bollards in front of the seawall and stated that the Council is doing the right thing by having the experts review the environmental concerns for the Las Minutes — Regular Council Meeting February 24, 2009 — Page 8 Brisas plant. Rudy Medina, 5701 Cain, spoke regarding code enforcement violations on a property located at 5402 Holly. Abel Alonzo, 1701 Thames, urged the public to listen to the facts before making decisions on the Las Brisas plant. Council Member McCutchon requested that staff provide a list of other petcoke plants in or near a major metropolitan area. Council Member Martinez asked staff to provide a memo regarding the violations at the property located at 5402 Holly. Mayor Garrett requested a report on the results of the meeting of the Zoning Board of Adjustment regarding this property. Mayor Garrett announced the executive sessions, which were listed on the agenda as follows: 28. Executive session under Texas Government Code Section 551.071 regarding Cause No. 08-60884-2, Steve A. Perez vs. Arnoldo Guerra and the City of Corpus Christi, in the County Court at Law Number 2, Nueces County, Texas, with possible discussion and action in open session. The Council went into executive session. The Council returned from executive session and the following motion was passed with the following vote: 28. MOTION NO. 2009-058 Motion authorizing the City Manager to settle Cause No. 06-60884-2, Steve A. Perez vs. City of Corpus Christi, in the County Court at Law Number 3, Nueces County, Texas, for the total sum of $166,000, subject to certification of funds. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Kelly, McCutchon, and Marez, voting "Aye"; Hummell, Leal, and Martinez, were absent. ** ** * * * * * * * * * Mayor Garrett returned to Item 25 regarding an update on the Police/Fire Group Health Insurance Program. The following topics pertaining to this item were discussed: whether the City has exceeded the number of claims this year; the amount of the insurance reserve fund; the financial basis for raising the firefighters' premiums and the comparison to not raising Police; if the City would have to subsidize the fire insurance if the premiums aren't raised for firefighters; the percentage contributed by the City and Fire; unfunded liabilities; the specified time for funding GASB 45; the annual required contribution; how GASB 45 liability is determined; the amount of money generated by increasing Fire 18%; the amount of the unreserved fund; the reasons not to use the fund balance; whether there will be a corresponding 18% city contribution for the Fire 18%; if not funding GASB 45 would have a negative impact on the bond rating; how other cities are funding GASB; whether "pay as -you -go" is considered a plan option; whether the firefighters contribution to the reserve fund can be segregated; if the firefighters have any savings to offset the premium increase; combining Police and Fire health plans; how long negotiations would take to have the unions consider joining Citicare or another option; the amount of time the City has filtered money into the reserve fund; the July 22nd analysis by Mr. McGraw for the Fire premiums; when staff planned on implementing the 18% for Fire; how long the City has been self-insured; if an analysis has been done on the City insurance program; the number to be fully funded for GASB; the amount spent on retiree claims expenses; how much of the 18% is to make up for previous losses and how much for anticipated actuarial losses; and establishment of a committee to discuss GASB 45. Minutes — Regular Council Meeting February 24, 2009 — Page 9 Mr. Marez made a motion to direct staff to proceed with a plan that would include a 0% for Firefighters. The motion was seconded by Ms. Cooper. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Leal, Marez, and Martinez, voting "Aye"; Hummell, Kelly, and McCutchon, voting "No" Mayor Garrett stated that a committee should be established to make recommendations recommendations on GASB 45. Mayor Garrett opened discussion on Item 18 regarding fees charged for ambulance and emergency medical services Fire Chief Richard Hooks explained that this item is a recommendation to increase fees charged for emergency services. Chief Hooks referred to a powerpoint presentation including the focus of emergency care prior to the 1960's; events that lead to formation of EMS; early programs; the National EMS Act of 1973; EMS services today; MICU equipment; picture of simulated CPR call; goals for rapid response; rapid response procedures; fees and surveys; statewide EMS rates; cost issues; South West General Services; and recommendation. Scott Fathergill, Southwest General Services, spoke regarding the impact of the proposed rate on users. The following topics pertaining to this item were discussed: preserving the revenue earned for EMS specifically for the operating department; the phase of the billing services changes; and whether there was a decline during the change over period. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 18. FIRST READING ORDINANCE Amending Section 18-20, Code of Ordinances, City of Corpus Christi, relating to the fees charged for ambulance and emergency medical services; providing for publication. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye" Cooper was absent. Mayor Garrett opened discussion on Item 19 regarding the Tortuga Dunes Subdivision. City Manager Escobar announced that this item was pulled by staff. Interim Assistant City Manager of Development Services Johnny Perales stated that the item was pulled due to an inconsistency in the agreement. Council Member McCutchon as whether the delay was discussed with Forestar and Naismith Engineering. Mr. Perales said the Forestar is aware of the delay. 19. WITHDRAWN dual force main, and related appurtenances; at a cost not to exceed $2,457,890.25. Minutes — Regular Council Meeting February 24, 2009 — Page 10 Mayor Garrett opened discussion on Item 20 regarding a contract with Fulbright & Jaworski LLP to perform bond counsel. Interim Director of Financial Services Constance Sanchez explained that this item is a directive by Council to begin negotiations with Fulbright & Jaworski LLP to perform bond counsel services for a five-year term. Ms. Sanchez added that staff has worked out the details of the contract with Jeff Kuhn. Ms. Sanchez introduced Jeff Kuhn and Clay Benford with Fulbright & Jaworski, LLP. Council Member Kelly had a question on the first page of the engagement letter under the section titled, "Cooperation" dealing with City staff disclosing to bond counsel all material facts and developments relating to issues. In the event that City staff inadvertently failed to disclose a material fact, Council Member Kelly wanted to know what Fulbright's stance would be. Mr. Kuhn responded that if it were a mutual mistake, both the City and Fulbright and Jaworski LLP would have to take joint responsibility and liability. Council Member Kelly then had another question on the second page of the engagement letter which dealt with matters that take less than 5 hours to resolve. The engagement letter indicated that the City would not be charged for the first 5 hours of each new matter. Mr. Kuhn stated that this was included to encourage staff to ask questions of bond counsel on new matters. Council Member Kelly wanted to know what would happen after the 5 hours were exhausted. Mr. Kuhn stated that if a matter approached 5 hours, then he would visit with City staff to determine how the hours over 5 hours will be billed: either at an hourly rate, a fixed fee basis, or charged to a third party. The other topics that were discussed pertaining to this item include a comparison of rates between Fulbright & Jaworski and McCall, Parker and Horton; the fee structure for city corporations; the number of agencies that had bond experience; the rating for Fulbright and Jaworski; and whether all of the firms were interviewed. Mr. Hummell made a motion to amend the contract to read "To enable us effectively to perform the services contemplated, it is essential that you disclose full and accurately all material facts and keep us apprised of all developments relating to the Matter." The motion was seconded by Mr. Kelly. The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye" Cooper was absent. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 20. MOTION NO. 2009-054 Motion authorizing the City Manager to enter into a contract with Fulbright & Jaworski, LLP, to perform bond counsel services for the City of Corpus Christi. The foregoing motion was passed and approved as amended with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye" Cooper was absent. Mayor Garrett opened discussion on Item 21 regarding the issuance of Texas Utility System revenue Improvement Bonds, Series 2009. Interim Director of Financial Services Constance Sanchez provided an overview of this item including the market considerations; the parameters of the sale; the expiration of the authority; and the structure of the bonds. Minutes — Regular Council Meeting February 24, 2009 — Page 11 Ms. Sanchez introduced the presentation team including Alex Hinojosawith Frost Bank, Jeff Kuhn and Clay Bedford with Fulbright and Jaworski, and Mark Seale with M.E. Allison. The following topics pertaining to this item were discussed: the interest rate and the maturity of the bonds. Council Member McCutchon made a motion to amend the contract to decrease the maximum interest rate from 8% to 7%. The motion was seconded by Ms. Martinez. The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye"; Cooper was absent. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 21. ORDINANCE NO. 028087 Ordinance providing for the issuance of City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2009, in an aggregate principal amount not to exceed $98,000,000; establishing parameters regarding the sale of the Revenue Improvement Bonds; approving the execution of a purchase contract; and all other matters related thereto; and providing that this ordinance shall be in force and effect from and after the date of its passage. An emergency was declared, and the foregoing ordinance was passed and approved as amended with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye". Mayor Garrett opened discussion on Item 22 the American Bank Center (ABC). Assistant City Manager Margie Rose introduced Jerry Walker with Impact DataSource. Mr. Walker referred to a powerpoint presentation on the economic impact of the ABC including: a background; revenues generated by the center; jobs and salaries; taxable sales; impact on lodging; property tax paid by workers; taxes received by the City; City subsidy for operations of the center; and comparative subsidies. The following topics pertaining to this item were discussed: the purpose for performing an economic impact study; the cost of the study; the City subsidy for FY07-08; whether convention center are always subsidized and do not make money; whether there are other expenditures that aren't included in the $3.2 million subsidy; the total funding from the City; the number of people that attend events at the center; the cost of the air conditions for the center; the number of out of town visitors; the number of indirect jobs and how that is determined; types of indirect occupations; the money spent by concert promoters and others; how the data information was received by SMG; the number of workers that live in Corpus Christi; and the estimated property taxes paid by direct and indirect workers. Assistant City Manager Rose explained that this item is a recommendation by staff to extend the existing agreement with SMG for five years, to allow the City to assign food and beverage and alcohol agreement to SMG, and at the end of year three solicit Request for Proposals (RFP) for venue managers. Ms. Rose referred to a powerpoint presentation including background information; the original RFP process; the management agreement; terms of the agreement; financial overview of the convention center and the arena; advantages and disadvantages to negotiating a new agreement; and recommendations. Minutes — Regular Council Meeting February 24, 2009 — Page 12 The following topics pertaining to this item were discussed: the allowance for uncollectible receivables; the entity that has the contract with Centerplate; the cumulative net loss for the arena; whether debt service is reflected in the financial overview; the subsidy provided by the Corpus Christi Business and Job Development Corporation (4A); the debt service annually; replacement of the chillers; the reason Centerplate is not providing the City the 39% revenue fees; if Centerplate is losing money; the MIS allocation; the total costs to operate the ABC center; SMG management fee; SMG actual expenditures; cost of salaries; whether SMG owes payments to the City and how delinquent they are; whether departments are complied to stay within budget; whether the City discussed the anticipated loss for the center in 2000; the relationship between SMG and Centerplate; the 4A board's recommendation to solicit an RFP for the arena; if the same contract is inplace for the arena and convention center; the provision to solicit proposals in the third year; monitoring the contract; what would happen to the current tenant contracts if an RFP was issued; whether the initial contract had a renewal period; other venue managers; consideration of incentives for groups that bring conventions; the length of the contract; and the timetable for finalizing a contract. Eloy Salazar, Chairperson of the 4A Board, spoke regarding the reasons the 4A Board recommended soliciting an RFP. Marc Solis and Joe Romano with SMG responded to questions regarding negotiating tenant contracts beyond the contract term with SMG. City Secretary Chapa polled the Council for their votes as follows: 22.b. MOTION NO. 2009-055 Motion authorizing the City Manager or his designee to negotiate a five (5) year agreement with SMG to operate and manage the American Bank Center under new fees, terms, and conditions, with the negotiated agreement to include but not be limited to: (1) a term adding to SMG's duties the duty to manage all food and beverage services at the American Bank Center, including management of all alcoholic beverage services; (2) a term acknowledging that SMG shall be assigned both the Food and Beverage Services Agreement with Centerplate and the Alcohol Service Management Agreement with the Corpus Christi International Seamen's Center; (3) a term stating that, immediately following the third (3rd) year of the agreement, the City shall solicit and entertain proposals from private venue management firms to operate and manage the American Bank Center; and (4) a term giving the City the right, at any time following the third (3rd) year, to terminate the agreement, without cause, by providing nor more than ninety (90) days notice to SMG, such termination to be without the payment of any penalty, fee or premium. The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, Marez, and Martinez, voting "Aye"; Cooper was absent. Mayor Garrett opened discussion on Item 23 regarding the Automated Meter Reading (AMR) Initiative Project —Expansion Update — Year 4 of 5. Assistant Director of Financial Services Michael Barrera explained that the change orders were required for additional work for infrastructure improvements. The following topics pertaining to this item were discussed: issues where meter readings are extremely irregular; whether the City will continue to estimate bills once the system is in place; winter averaging; and how customers are aware they are receiving an estimated reading. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: Minutes — Regular Council Meeting February 24, 2009 — Page 13 23.b. MOTION NO. 2009-056 Motion approving Amendment No. 3 to the Automated Meter Reading contract, with Northrop Grumman Information Technology, Inc., of Bohemia, New York, in the amount of $3,735.002. Funding has been programmed in the adopted FY2009 Capital Improvement Project (CIP) Budget. The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye"; Cooper was absent. 23.c. MOTION NO. 2009-057 Motion amending the consultant contract with RAM Technologies, Inc., of Fort Washington, PA for contract management and technical assistance of the Automated Meter Reading project, in the amount of $138,701. Funding has been programmed in the adopted FY2009 Capital Improvement Project (CIP) Budget. The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye"; Cooper was absent. ************* Mayor Garrett opened discussion on Item 27 regarding a presentation on the Public Information Act Progress Report. Assistant City Attorney Ronnie Bounds referred to a powerpoint presentation including the amended request form; customer survey; document pre -clearance; waiver of charges; expedited responses; and future steps. The following topics pertaining to this item were discussed: redaction required for Texas Drivers License on Human Resources documents; the formal policy; and tracking system procedures. Mayor Garrett opened discussion on Item 26 regarding the newly developed phases of emergency operations for Gulf Beach. Director of Parks and Recreation Sally Gavlik explained that after the active hurricane season, a committee was developed that consisted of Fire, Police, Parks and Recreations, County representative, Surfrider Association and the Watershore and Beach Advisory Committee that reviewed the phases of emergency plans for the gulf beaches. Ms. Gavlik introduced the presentation team including Fire Chief Richard Hooks, Police Commander JV Garcia, Special Events and Beach Superintendent Michele Thomas, and Lifeguard Supervisor Derek Herzog. Ms. Gavlik added that the phases were approved by the Watershore and Beach Advisory Committee in November 2008 and the Park and Recreation Advisory Committee in December2008. Ms. Gavlik referred to a powerpoint presentation including a background; the definition of a storm surge; Phase I—clear the beach; Phase Il -closure of the access roads; Phase III -closing parking lots; Phase VI -assess damage and clean; and additional signage. The following topics pertaining to this item were discussed: the wording on the other side of the flip signs; barricades staying up for long periods of time; and allowing people to use the beaches after the storm surges have gone down. ***** **** * * * * Minutes — Regular Council Meeting February 24, 2009 — Page 14 There being no further business to come before the Council, Mayor Garrett adjourned the Council meeting at 7:21 p.m. on February 24, 2009.