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2004 10 14 WS MinutesMINUTES OF THE WORK SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN October 14, 2004 The City Council of the City of Baytown, Texas, met in work session on October 14, 2004, at 5:00 p.m. in the Hullum Conference Room, Baytown City Hall, 2401 Market Street, Baytown, Texas, with the following in attendance: Ronnie Anderson Sammy Mahan Don Murray Scott Sheley Calvin Mundinger Gary M. Jackson Bob Leiper Ignacio Ramirez, Sr. Gary W. Smith Council Member Council Member Council Member Council Member Mayor City Manager Deputy City Manager City Attorney City Clerk Absent was: Mercedes Renteria III, Council Member. The meeting was opened with a quorum present after which the following business was conducted: Discuss the application for the City's support of Bayer Corporation as an enterprise zone project. Gary Jackson, City Manager, explained that City Council had previously adopted guidelines for the new enterprise zone program while support for the Exxon Mobil project was considered. At that time two steps were completed. The first was a public hearing to obtain public input on the proposed incentives in the enterprise zones. The second step was adopting an ordinance establishing the incentives and nominating the Exxon Mobil project. Since the incentives have been adopted, Council need only consider whether to nominate the Bayer Corporation project. The October 26, 2004 Council agenda will contain an item to allow Council to nominate the Bayer Project, should Council desire to do so. A letter for John Rocco is included in the informational packet. The letter describes the project, which will expand the facility and retain jobs. The Bayer Industrial District Agreement will renew in 2006. There are new owners for parts of the facility and they are studying the impact of the Industrial District Agreement on their operations. (01` Cherie Laughlin, Bayer Corporation, expressed Bayer's appreciation for the City's support of the facility and asked that Council nominate the project to assist the facility in competing in the global economy. Page 2 of 4 Minutes of the Work Session — October 14, 2004 Discuss the Preliminary Engineering Report on Year Three of the Street Bond Program. Bob Leiper, Deputy City Manager, reviewed the increases in estimated costs for the Street Bond Program, Phase M. In April, the cost of paving the streets in concrete was approximately $3.7 million and approximately $2.5 million for asphalt. By August, when a more detailed study had been completed, the estimated costs for utility adjustments at $764,000, drainage at $597,000, and miscellaneous at $378,000 were added and the cost for concrete had increased to $3.37 million and the cost for asphalt had increased to $2.6 million. The costs were reviewed in September and the estimated cost for concrete had risen to $3.4 million and the estimated cost for asphalt had risen to $3 million. Based on the nature of each roadway and the estimated costs, staff has recommended either concrete or asphalt for each street. The total estimated cost for the project is $4,866,413. Staff proposes that funding from the Utility Capital reserve and the General Fund Capital be used as funding for the required utility work. Phase I is nearing completion and Phase II should be completed prior to the award of the Phase III bid. The surplus from Phases I and II may be used to fund the difference in the available funding and the estimated cost. At the next Council meeting, an item will be included to allow Council to authorize the engineering firm to prepare the final design of the project. Council Member Murray urged Council to carefully consider using the Utility Capital reserve for street paving. The urgency to repair the sanitary sewer system must be weighed against the urgency to pave streets. Council Member Mahan urged continuing with all the streets in the phase, because a significant expenditure had already been made. Fred Pack, Director of Public Works, noted that the utility replacements in connection with the Street Bond Program would assist in resolving the inflow and infiltration problems of the sanitary sewer system. Many of the replaced lines are old and are undersized. Council Member Sheley urged Council to consider a program for the replacement of private lateral sewer lines at the same time that the street is being repaired. Discuss Job Order Contracting. Mr. Jackson explained that Lee College and Goose Creek Consolidated Independent School District have successfully used Job Order Contracting. Travis Doughty, Purchasing Agent, reported that Lee College recently used Job Order Contracting to paint the old Sears Building. Twenty local contractors signed up for the program. In a project on the Student Center, Lee College saved $30,000 over a sealed bid by using Job Order Contracting. Mr. Leiper explained that staff is requesting that Council authorize the use of Job Order Contracting on the repairs to the Ships Store. Mr. Doughty said that the price for each job is fixed and the offers are based on a percentage off the fixed price. Page 3 of 4 Minutes of the Work Session — October 14, 2004 Discuss providing Municipal Utility District 213 with temporary water service. Mr. Jackson stated that Municipal Utility District 213 is an approved district, but has not been constructed. The Midway Companies have asked the City to provide a temporary supply of water until the new Baytown Area Water Authority line is constructed. The development projects over 2,000 homes when completed. The developer has proposed to construct a 12" water line, at the developer's expense, along Garth Road, from the existing line to the District. Upon completion, the water line will be dedicated to the City. When the new BAWA line is completed, the District will become a BAWA customer. The District will pay all of the fees that BAWA requires. The District and developer understand our impact fees. An offset credit will be allowed for the cost of installing the 12" water line. A small commercial tract is proposed and the developer has agreed to enter into a strategic partnership agreement and a limited purpose annexation to allow the City to receive sales tax from the commercial development. Council policy does not allow water or wastewater service for residential property outside the City limits. This request is for temporary water service and the customer will become a BAWA customer. The item is for discussion and will be included on a later agenda for action. Jimmy Pappas, Midway Residential, Inc., and Midway Holdings, Inc., related that the developer has extensive background in residential development. The proposal is for the development of a 2,100+ residential subdivision. It will take ten years to complete the development. The problem with proceeding was a supply of water. Staff was helpful in resolving the water issue. Mr. Leiper noted that the customers would pay out -of -City rates. Mr. Pappas reviewed the features of the area proposed for development. Council Member Anderson questioned whether the providing the development with water was significantly distinct from the other requests for water that had been denied. Ignacio Ramirez, Sr., City Attorney, stated that his office would research the question. Consider appointments. Houston Galveston Area Council representative and alternate. Council Member Anderson stated that he would move the reappointment of Council Member Murray as the representative and Mayor Mundinger as the alternate to the Houston Galveston Area Council. Adjourn. Council Member Murray moved adjournment. Council Member Sheley seconded the motion. The vote follows: Page 4 of 4 Minutes of the Work Session — October 14, 2004 Ayes: Council Members Anderson, Mahan, Murray, and Sheley Mayor Mundinger Nays: None. The motion carried. There being no further business, the meeting adjourned at 6:13 p.m. G ary Smith City Clerk