2003 03 27 WS MinutesMINUTES OF THE WORK SESSION
OF THE CITY COUNCIL OF THE CITY OF BAYTOWN
March 27, 2003
The City Council of the City of Baytown, Texas, met in work session on March 27, 2003, at 4:40
p.m. in the Council Chamber of Baytown City Hall, 2401 Market Street, Baytown, Texas, with the
following in attendance:
Ronnie Anderson Council Member
Coleman Godwin Council Member
Calvin Mundinger Council Member
Don Murray Council Member
Pete C. Alfaro
Mayor
Gary M. Jackson
City Manager
Ignacio Ramirez, Sr.
City Attorney
Gary W. Smith
City Clerk
Absent: Mercedes Renteria III
Council Member
Scott Sheley
Council Member
The meeting was opened with a quorum present after which the following business was conducted:
Discuss option for restaurant building at Bayland Waterfront.
City Manager Gary Jackson opened the discussion with the debt owed related to the property and
improvements. If any sale of the island is to be considered, the general obligation bonds must be
defeased and the debt to Southwest Bank must be paid. A valid and binding lease is in effect on the
Ships Store.
The restaurant building could be sold. As a part of the transaction, either the note to Southwest
Bank must be paid down or a mechanism must be set in place to pay the debt.
The options involving the restaurant building include paying down the debt and selling the building
or repairing the building and entering into a new lease on the building. The City has received
inquiries from potential purchasers and potential lessees. Staff believes that it is more advantageous
to sell the building. Otherwise the extent of repairs must be determined, the repairs must be made
and the debt must be paid and the City would continue to be the landlord for the facility. Staff
would prefer to seek bids.
A bid program could be structured as follows: $500,000 of the suit proceeds could be used to pay -
down the outstanding debt of $784,000. The property would be sold "as is" with a long -term
ground lease. The purchaser would be required to have repairs made and the structure certified by a
structural engineer that the structure meets the City's building codes. The proceeds of the sale
would be used to pay off the debt.
If no bids are received, then the options of demolishing the structure or repairing the structure and
entering into a new lease could be considered.
Page 2 of 4
Minutes of the Work Session — March 27, 2003
In any event, the pay -down of the debt would not occur until after bids are received and accepted by
City Council.
The bid package would include an alternate invitation to bid on the purchase of the island. The
invitation to bid would include necessary language to define the protection of the Marsh area, the
condition of a successful election for the sale of parkland, the payment of the general obligation
bonds through defeasing, and recognition of the lease of the Ships Store. Staffs recommendation
for the sale of the island specifically excludes the area adjacent to Highway 146. Only the area
across the bridge would be offered for sale. If an acceptable bid were received, an election for the
sale of the 12.34 -acre parkland tract would be held and the sale would be contingent upon approval
of the sale by the electorate. The bid must provide that the general obligation bonds will be
defeased. The bid must provide for payment of the Southwest Bank debt. The bid must recognize
the encapsulated dredge material and that the marshland is to be preserved in perpetuity.
The bid package would have two elements. The first would address the sale of the restaurant
building. As previously described, $500,000 from the lawsuit proceeds would be used to pay -down
the note and the balance would come from the sale of the building or from the Capital Replacement
Fund as an internal loan. The internal loan would be repaid from the Senterra note payments. The
balance of the lawsuit proceeds would be used to hire an architect to evaluate the Ships Store and
recommend repairs or replacement, designing both. If an acceptable bid is approved, the payments
from the marina lease and general fund proceeds will be used to discharge the balance of the
Southwest Bank note attributable to the Ships Store and other improvements.
The second element of the bid will be for the sale of the island. The conditions of the bid will
include a successful election for the sale of the park land, cash to defease the general obligation
bonds, cash to pay the Southwest Bank note, acknowledgement of the marina lease and a pledge to
honor the terms of the lease, conditions related to the marshland and the dredge spoil areas, and the
future obligation to dredge the marina. The minimum bid would be $4.1 million. Financial
statements and a bid bond would be required. If a bid to purchase the island is accepted, the lawsuit
proceeds will not be used to pay on the Southwest Bank debt.
Bidders may bid on either or both, however, acceptance of a bid on one option excludes acceptance
of the bid on the other option. The timeline for the process includes 30 days to prepare the
invitation to bid, a 45 to 60 day period to receive bids, 30 days to review the bids with final action
in late August.
Members of Council expressed their views that the City should get out of the restaurant and
landlord business. Council Members Mundinger and Murray expressed a desire to place restrictions
on the use of the property in the bid package for the sale of the island.
Discuss outsourcing the operation of the City's pools.
Mr. Jackson stated that through the strategic plan process ideas for cutting expenditures and
increasing revenues are being reviewed. The ideas will be presented to Council. One proposal is
for the outsourcing of the management of the operation of the City's swimming pools. Some cities
have seen significant savings through the process. La Porte has been successful in outsourcing its
operations. The YMCA and several private entities have expressed interest in submitting a bid to
operate the pools. In response to an inquiry from Council Member Anderson, City Attorney Ignacio
Ramirez, Sr. stated that the contract would require sufficient insurance and indemnity of the City,
Page 3 of 4
Minutes of the Work Session — March 27, 2003
its officers and employees.
Mr. Jackson commended Scott Johnson, Parks Director, and his staff for researching and bring the
proposal forward.
Receive briefing on and discuss First Responder program.
Mr. Jackson noted that he has had questions about the First Responder program and about the use of
fire engines to respond to certain calls. Part of the strategic plan is to bring major programs to the
Council for review.
Fire Chief Dale Palmer began his comments by recognizing the cooperative efforts of Mike Lester,
Director of Health; Byron Jones, Police Chief, and Malcolm Swinney, Director of Communications,
in helping prepare the report. He also noted the work of the EMS Advisory Committee in their
continuing efforts to improve pre - hospital care.
Assistant Fire Chief Shon Blake gave a brief history of emergency medical services in Baytown.
The City began operating EMS in 1986. The First Responder program was begun in 1992. The
purpose of the program is to provide an enhanced service level for critical emergencies. It is part of
the American Heart Association's "Chain of Survival." The locations of the fire stations tend to
provide a more rapid response than is available from the two EMS locations.
The elements of the First Responder program include Scene Management, which provides for safety
and efficient use of resources; Patient Care, of the 200 top cities in the United States, 96% have a
First Responder program; Rescue, provides manpower to assist in critical situations; Staff
Allocation, provision of EMS is labor intensive and the fire personnel are trained to provide basic
life support and the EMS personnel provide the advanced care.
The program provides for a response to 18 critical, life - threatening, emergency scenarios. In the
last 5 years, the Fire Department has responded to 24,686 calls, of which 62% were medical
emergencies. In 2002, the department responded to 4,995 calls, of which 62% were medical
emergencies. The first unit arriving, either Fire or EMS, upon assessment of the medical condition,
can release the second responding unit from the call.
The cost of the program is $2.32 per mile. The average call is 1.5 miles. The cost of equipment and
supplies is $11,083.80 annually. The annual training cost is $6,100. The total annual cost is
$17,183.80. The benefits of the program include optimization of survival and enhancement of the
quality of life.
A review of a typical call was provided.
Mayor Alfaro noted that the Council must determine the most effective and efficient way to provide
the service. While the level of service could be provided exclusively through EMS, additional
resources would be required. The resources appear available in the Fire Department.
In response to inquiries from Council Member Godwin, Chief Palmer stated that the program was
being modified to reduce the responses to minor automobile accidents that did not require additional
assistance or presented no medical emergency.
Page 4 of 4
Minutes of the Work Session — March 27, 2003
Council Member Mundinger left the meeting during the discussion of the First Responder program.
Discuss appointments.
Council Member Murray stated that he would move the reappointment of Lewis McRee and Jim
Seth to the Tow Track Committee.
Adjourn.
There being no further business, Council Member Godwin moved adjournment. Council Member
Anderson seconded the motion. The vote follows:
Aye: Council Members Anderson, Godwin, and Murray
Mayor Alfaro.
Nay: None.
The motion carried and the meeting adjourned at 6:00 p.m.
aSG ith
City Clerk