FEBRUARY 28, 2007

5:30 P.M.


I.          CALL TO ORDER


            With a quorum present Mayor Raul G.  Salinas called the meeting to order.


II.        ROLL CALL


            In attendance:


            Raul G.  Salinas,                                                                       Mayor

            Mike Garza,                                                                             Council Member, District I

            Michael Landeck,                                                                     Council Member, District III

            Johnny Amaya,                                                                         Council Member, District IV

            Gene Belmares,                                                                        Council Member, District VI

            Juan Chavez                                                                             Council Member, District VII

            Juan Ramirez,                                                                           Mayor Pro Tem, District VIII

            Gustavo Guevara, Jr.,                                                               City Secretary

            Cynthia Collazo,                                                                       Acting City Manager

            Horacio De Leon,                                                                     Assistant City Manager

            Valeria Acevedo,                                                                      Acting City Attorney


            Motion to excuse Cm. Rendon and Cm. Garcia.


            Moved:  Cm. Garza

            Second:  Cm. Amaya

            For:     6                                               Against: 0                                             Abstain: 0




            Mayor Raul G. Salinas led in the Pledge of Allegiance.




            1.  Discussion on secondary water negotiations, with possible action.


                Horacio, stated that the presentation will be made by the negotiating team which includes           staff and hired consultants. He mentioned that a presentation from Dimmit County                     Utilities Supply Company is also available.  He asked for a recommendation from                          management after discussion takes place, to allow additional time to continue to                         negotiate and to clarify performance risks that have come about as a result of the draft                             agreement that was made.  He added that 45 to 60 days are needed which will allow the         new City Manager to get acquainted with the project.


                Adrian Montemayor, from the Utilities Department, made the following power point                   presentation before the City Council.


City of Laredo

Secondary Water Supply





Ÿ         Background (city)

Ÿ         Team Qualifications (city)

Ÿ         Selection process (city or Bill)

Ÿ         Water verification (Bridge)

Ÿ         Water quality (Bill)

Ÿ         Pipe material (Bill)

Ÿ         Current contract highlights(Bruce)




Ÿ         Water supply alternatives

§         Water Rights

§         Water Conservation

§          Reuse

§          Secondary Water

Ÿ         Well Fields

Ÿ         Desalination

Ÿ         Risks

§         Every alternative has risks


Background - Secondary Water


Ÿ         Previous project City had majority of risk

Ÿ         Current plan

§         Risk on provider

§         Take or pay contract

§          Nothing paid until contract fulfilled

Ÿ         City Risk - Time




Ÿ         Hire consultant

§         Develop RFP

Ÿ         Seek RFP for secondary water

Ÿ         Review

Ÿ         Authorize negotiations with select proposer to develop agreement

Ÿ         Enter into long-term contract


Review Committee


Ÿ         Develop RFP

Ÿ         Professional committee

§         Review

§         Interview

§         Report

§         Negotiate

§         Develop agreement

Ÿ         Independent expertise in planning groundwater, financial and legal issues


Proposal Review Committee


Ÿ         Adrian Montemayor,

§         Operations Manager

Ÿ         Joseph (Bill) Norris, P.E.,

§         NRS Consulting Engineers

Ÿ         Bruce Wasinger,

§         Bickerstaff, Heath, Pollan & Caroom, LLP

Ÿ         Ridge Kaiser, P.E.,

§         R.W. Hardin & Associates

Ÿ         Jeff Snowden,



Bill Norris, with NRS Engineering continued with the power point presentation.


                  Benefits of Current Approach


§         Competitive

§         Satisfies portion of City’s short and long term rules

§         Turn-Key approach

§         Minimal City Resources

§         No financial risk

§         Improved water quality

§         Drought proof supply

§         Improved security

§         Does not conflict with other water strategies


Selection Process


Ÿ         Written Proposals

Ÿ         Two hour interview (closed session)

Ÿ         Independent rating of proposals

Ÿ         Recommendation to City Council

Ÿ         Authorized committee to negotiate agreement

§         Multiple meetings with all parties

§         Continued iterations of contract


Proposals Received


Ÿ         Grass Valley Water, L.P.

§         130 Mile Pipeline

§         Edwards Aquifer BFZ

Ÿ         Dimmit Utility Water Supply Corporation

§          70 Mile Pipeline

§          Carrizo Wilcox Aquifer


            Technical Evaluation



Grass Valley

Dimmit Utility WSC




Financial Capabilities



Development of Source Water



Knowledge of Process Involved



Confirmed Supply



Exclusive Use






Groundwater District Approvals



Environmental Considerations








             Financial Analysis


Years in

Planning Period


NPV Rate






























Key Points


Ÿ         GVW does not include electricity costs, pump fees, water transport and pass through fees.

Ÿ         GVW-no contingencies for construction cost escalation.

Ÿ         DUWSC includes contingencies and reduction for risk sharing.

Ÿ         Both proposals assume tax exempt financing.

Ÿ         DUWSC transfer of the pipeline in 2029.

Ÿ         DUWSC offer to evaluate energy recovery and/or standpipe to utilize existing pipeline pressures.


Conclusion and Recommendation


Ÿ         Dimmit Utility Water Supply Corporation

§         Highest Technical Ranking (Unanimous)

§         Lowest Short and Long Term Cost to City

§         Recommend Authorization Negotiations with Dimmit UWSC

Ÿ         Timeline

§         Recommend timeline for contract late January or February 2007


Water Verification/Availability


Ÿ         Physical/Technically

Ÿ         Permitting


Location Map


Rich Kaiser, President of Hardin & Associates continued the presentation.


Dimmit Utility Water Reserves


Technical Water Availability Verification


Ÿ         Obtained Available Data

Ÿ         Conducted Analytical Volume Calculations

Ÿ         Conducted Groundwater Availability Modeling

§         Harden-Assoc. Well Field Model

§         TWDB Image II Model

§         TWDB Groundwater Availability Model

Ÿ         Conclusion:  Water Available to Meet Demand with Sufficient Additional Reserves


Regulatory Water Availability Verification


Ÿ         Reviewed GWCD Rules

§         Sufficient Acreage

§         Permits Required

§         Proposed Project’s Consistency with Rules

Ÿ         Reviewed GWCD Management Plan

§         Proposed Project’s Consistency with Plan

Ÿ         Assessed Potential of Project to Obtain Permits With Dimmit Utility

Ÿ         Addressed Permitting Risk in Contract

§         Recharge and Conservation Efforts


Water Quality


Ÿ         Representative testing

§         By NRS (Analab)

Ÿ         Iron removal expected (by Dimmit)

Ÿ         Contractually obligated to meet federal standards

Ÿ         Expected higher quality than current source


Pipe Material


Ÿ         Standard HDPE/AWWA Standards

Ÿ         Accepted material worldwide

Ÿ         If it works for 20 years it will work for 100

Ÿ         City not obligated to take over system

Ÿ         Advantage to city to locate manufacturing facility


Current Contract Highlights


Motion to continue the fiscal allocation and negotiations freeze on the Dimmit Utility Corporation proposal until we receive all information regarding alternative water sources production and delivery systems with in the limits in Webb County.


Moved:  Cm. Garcia

Second:  Cm. Garza

For:  5                                            Against:  1                                           Abastain:  0

                                                      Cm. Belmares


            2.  Presentation on the River Vega Master Plan Project.


                 Horacio de Leon mentioned that the master plan covers from the Laredo Community                             College Main Campus to the west and to the Zacate Creek to the east.  He added that 90              percent of the land has been acquired.


Kevin Conner, project manager of Carter and Burgess, stated that they are in the preliminary stages of the project. He reported that they have been working on it for four months.  He presented Council with a site inventory and a site analysis.  He added that the site analysis forms the foundation of what they are proposing.  At the beginning of the presentation, he stated that the Tex-Mex rail yard is challenging due to the access of the waste water treatment plant. He stated that the river front has finite choices, much less than other cities due to the fact that we own only half of it.  He mentioned that there are plenty of parking spaces most of which are in the wrong place.  He stated that the parking spaces are 40 feet away from downtown and 20 feet away from the outlet mall which includes a hike up the hill.  He suggested that it could be used in a better way.  He commented that the river can not be seen most of the time from downtown and it must be seen in order to have riverside development.  He commented that the committee members questioned that the view of the river front development includes Nuevo Laredo, Tamaulipas.  He suggested that there is nothing tremendously objectionable and finds that people are drawn to it.  He stated that it is difficult to engage the river from downtown since the view is blocked.  He added that the access to the proposed convention center will have its difficulties and suggested that an up-ramp to the highway may be needed.  He stated that the location is very unique because the project is bracketed by the River Bend Park and by Slaughter Park.  He suggested making the river more visible and added that a sensitivity analysis is being done to see if it is possible to expand the river.  In his presentation he showed how the river will look if it is expanded.  He included the river road to the west where it shows a possible route for the up-ramp which will allow easier access to the proposed Convention and Visitors building.  He mentioned that a weir would be constructed as opposed to a dam. He defined the weir as a horizontal structure in the river that creates a level surface on the river, but allows all the water to pass through it.  He added that there is an approval process that needs to go to the International Boundaries Commission and mentioned that the staff has not expressed to them any objections at this time.  He added they will be working with them very closely. 


Horacio de Leon, Assistant City Manager, reported that the Border Patrol has a project that overlaps with River Vega Master Plan Project which includes the building of trails thorough the river front.  He stated that the City is in coordination with them.


Frank Rofenofsky, of Frank Architects, continued with the presentation.  He proposed making a connection with the International Bridge I, Bridge of the Americas, with the proposed convention site on the west side with a promenade.   He stated that visitors can stroll on the upper level and parking would be underneath.  He mentioned that two levels of covered parking are being suggested and added that there would be an area for a plaza, festival space, and a Farmers Market. 


Cindy Collazo, Deputy City Manager stated that the presentation of this project was to provide Council with information.  She commented that this project will be presented in Washington to make contact with all respective agencies including Mexico.  She asked Council if they could proceed forward.


Cm. Belmares replied to proceed.





            Motion to waive the final reading of Ordinance 2006-O-027.


            Moved:  Cm. Belmares

            Second:  Cm. Amaya

            For:     6                                               Against:  0                                            Abstain:  0


            3.  2006-O-027  Amending the City of Laredo 2007 Capital Improvement Fund budget by

                                       appropriating $58,000.00 in revenues and expenditures for a traffic light at

                                       the San Isidro Subdivision and accepting a donation of $58,000 from Mrs. 

                                       Blackstone Dilworth.


                                       Motion to adopt Ordinance 2006-O-027.


                                       Moved:  Cm. Belmares

                                       Second:  Cm. Garza

                                       For:  6                        Against:  0                                           Abstain:  0



VI.       MOTION


            4.  Authorizing the City Manager to amend a contract with NRS Engineering for an amount

                 not to exceed $29,000.00 for completion of the negotiations of the Secondary Water

                 Project development agreement.  The total amended contract will be $49,900.00 

                 Funding is available in the Groundwater Development line item of the Water

                 Availability Fund.    


                 No action was taken on this item.




            The City Council hereby reserves the right to go into executive session at any time during           this public meeting, if such is requested by the City Attorney or other legal counsel for the   City, pursuant to his or her duty under Section 551.071 (2) of the Government code, to             consult privately with his or her client on an item on the agenda, or on her client on an item          on the agenda, or on a matter arising out of such item.




            Motion to adjourn.                                                                                            Time:   9:17


            Moved:  Cm. Garcia

            Second:  Cm. Amaya

            For:     6                                               Against:  0                                            Abstain:  0


I, Gustavo Guevara, Jr., City Secretary, do hereby certify that the above and foregoing is a true and correct copy of the minutes contained in pages 01 to 08 and they are true, complete, and correct proceedings of the City Council meeting held on February 28, 2007. 





                                                                        Gustavo Guevara, Jr.

                                                                        City Secretary