HomeMy WebLinkAboutMinutes City Council - 07/07/1992 - SpecialMINUTES
CITY OF CORPUS CHRISTI, TEXAS
Special Council Meeting
July 7, 1992
4:00 p.m.
PRESENT
Mayor Mary Rhodes
Mayor Pro Tem Betty Jean Longoria
Council Members:
Cezar Galindo
Leo Guerrero
Edward Martin
Joe McComb
Dr. David McNichols
Clif Moss
Mary Pat Slavik
City Manager Juan Garza
City Attorney James R. Bray, Jr.
City Secretary Armando Chapa
Mayor Rhodes called the meeting to order in the Council Chamber of City Hall.
City Secretary Chapa performed a roll check and all members of the City Council
were present.
City Manager Garza gave an overview of the day's budget proceedings which would
include the alternatives to garbage collection and the alternatives affecting the General
Fund and the Debt Service Fund. He stated that he was presenting these two funds
collectively because both rely upon the property tax for annual expenditures.
SOLID WASTE DEPARTMENT
Mr. Bob Bruner, Director of Sanitation, gave a presentation on alternatives for
automated garbage collection and recycling. He stated the Pilot Program would initially
involve twelve percent of the community, or more precisely, 8,360 homes. First of all, he
displayed pictures of two garbage trucks, explained the crews required, and explained time
frames of pickup for each truck. He further discussed curbside pickup from City supplied
bins and explained the effects each program would have on the community, as well as the
Solid Waste Department in terms of costs, safety, and efficiency. He next discussed route
consideration which included accessibility and limited special pickup for the handicapped.
He also discussed establishing policies for garbage bins regarding theft, vandalism, and
damage.
Council Member McComb commented on a garbage collection operation he recently
witnessed in another city which used side loader trucks, and stated the operation appeared
MICROFILMED
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Special Council Meeting
July 7, 1992
Page 2
to be very efficient. Mr. McComb further suggested that, through privatization, the City
would eliminate the costs of the Sanitation Department and billing and collecting services.
Without these demands, the City could focus on the landfills. Mr. Garza then discussed
possible injuries involved in the usage of side loader trucks.
A broad discussion developed and a cost comparison was made between a six month
Pilot Program and the current collection program.
Council Member Guerrero discussed the possibility of remaining with the current
collection system and reexamining a new system at a later date. He further discussed the
recycling program costs and requested information regarding the expense for this program.
Mr. Garza stated he would provide this information.
Council Member McNichols inquired regarding the future overall costs to expand a
Pilot Program, and Mr. Bruner discussed the initial costs and long term savings.
Council Member Slavik inquired about reducing the waste stream at the landfill, and
Mr. Bruner discussed recycling brush and compost to reduce the waste. Mrs. Slavik further
inquired whether or not the $1.20 rate increase could be charged to only those customers
requesting a second pickup for putrescible materials, and Mr. Bruner stated that a pilot
program could be implemented which would involve approximately 800 homes to ascertain
the effects this program would have on the community. Responding to a question from Mrs.
Slavik, Mr. Bruner stated that he had contacted the Citizen's Committee for Recycling and
Solid Waste Disposal, and that this committee had applied for a grant from Environmental
Protection Agency for compost recycling.
Dr. McNichols further discussed the concept of providing a second pickup for
individuals wanting to pay an additional amount, instead of increasing all rates. Mr. Garza
stated this alternative would be investigated. Mr. Bruner further discussed the advantages
and disadvantages of this option.
Council Member Martin stated that the ultimate goal should be establishing a more
efficient program that would reduce the landfill waste. He further commented unfavorably
regarding lease/purchase equipment. Mr. Martin further suggested that the garbage
collection issue could be decided after the budget which would provide more time to
investigate further alternatives. Mr. Martin next suggested implementing several Pilot
Programs to determine which alternative would work best for Corpus Christi and stated the
Pilot Programs could involve between five and ten percent of the community instead of the
recommended twelve percent. Next, Mr. Martin suggested privatizing certain areas of Solid
Waste, such as brush pickup.
Mayor Rhodes suggested another option which would include eliminating the pickup
of grass clippings.
Mayor Pro Tem Longoria commented she is not in favor of separating the garbage
pickup services in the community or charging additional fees for additional service. She
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Special Council Meeting
July 7, 1992
Page 3
further suggested continuing with the current service and locating the needed money in
another area of the budget.
Council Member Moss suggested privatizing to avoid a big capital outlay expense in
the Sanitation Department.
Mr. Bruner stated that, due to the federal and state regulations, an automated
garbage collection system would eventually need to be implemented. Mr. Bruner further
commented on the contributions made to the General Fund by the Sanitation Department
and a brief discussion developed regarding this matter.
GENERAL FUND PROPOSED CHANGES
City Manager Garza stated that a memorandum was sent to the Council which
provided answers to several questions which were posed during the previous budget meeting.
The memorandum also included information on the proposed alternatives regarding the
General Fund and the Debt Service Fund.
Mr. Garza next gave an overview of the proposed changes to the General Fund and
the Debt Service Fund. He stated that these changes included adding back into the
expenditure budget the amount of $970,000 for the 2 Plus Plan and the amount of $116,255
for the street sweeping. He further stated that these amounts lowered the ending balance
to $1,198,738 which remains as an operating reserve. Mr. Garza then discussed the
alternatives which added revenue or reduced expenses.
Two Cent Property Tax Increase
Mr. Garza discussed a two cents increase in property tax which would provide an
additional $1,152,000.
Solid Waste Service Rate Increase
Mr. Garza next discussed a $1.20 Solid Waste service rate increase which would
provide an additional $970,000. This amount could allow a new collection program in
January 1993, if so desired by the Council, or be used in another area.
Texas Municipal Retirement System Matters
Next, Mr. Garza discussed the Texas Municipal Retirement System rate. He stated
that an increase to the fund balance would be realized without updating service credits in
the amount of $234,542, and discussed the distributed material on this matter. He explained
that the 1992-93 budget reflected an eleven percent rate of contribution from TMRS, and
that the 1993 contribution rate, without adoption of updated service credits, is 10.1 percent.
This rate was effective January 1, 1992, resulting in the reduced expenditure. A discussion
developed and several Council Members requested more information on what portion of this
decrease is due to a reduction in rate and what portion was due to not updating service
credits. Mr. Garza stated that he would provide this information.
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Special Council Meeting
July 7, 1992
Page 4
Council Member Guerrero inquired whether or not the City's portion of these
benefits could be suspended for a specified period of time, and City Manager Garza stated
that he would investigate this matter further.
Employee Work Week Reduction
Regarding the reduction of the non -organized employee work week from 40 hours
per week to 37.5, Mr. Garza stated a reduction in costs of $1,872,819 would be realized.
One Percent Pay Cut For Employees
Mr. Garza next discussed the one percent pay cut for City employees, excluding union
employees, and stated that this would result in a reduction in costs of $346,720. Council
Member Slavik inquired whether or not this figure included non-union Police and Fire
department personnel and all City employees, and Mr. Garza replied in the affirmative.
Automobile Use Expenses
Mr. Garza next referred to the City's automobile use expenses and stated that, if
these were eliminated, savings in expenditures of $146,100 would be realized. A discussion
developed and it was determined that these expenses were extremely beneficial to the City
because it precluded the City from having to provide additional funds for City vehicles.
Transportation User Fee
Next, Mr. Garza discussed the transportation user fee and the implementations of this
fee in Beaumont and Austin. He further pointed out that an increase would be provided
in the amount of $1,575,000.
Law Enforcement Costs/Public Events
Mr. Garza next discussed the law enforcement costs for public events which would
provide an increase of fund balance in the amount of $115,000. He further discussed the
details of this program which would require a permit fee to allow the City to recover
expenses for overtime police officers. Council Member McNichols referred to a ruling by
the Supreme Court involving the City of Orlando. He further stated that the Supreme
Court overruled an ordinance requiring persons seeking a parade permit to pay the actual
police costs which exceed the usual and normal costs of law enforcement. City Attorney
Bray stated that the ruling could have some limitations on First Amendment activities.
Responding to Council Member Martin's question regarding what type of events
would be included, Mr. Garza explained specific types of events and costs, and stated he
would provide further information on this subject. Mr. Garza also requested that Police
Chief Henry Garrett present a program to the Council for this particular fee.
Council Member Guerrero inquired regarding the staff reductions, and Mr. Garza
stated that the personnel and fleet reduction have been included in the budget. A
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Special Council Meeting
July 7, 1992
Page 5
discussion developed and Mr. Garza referred to his previously distributed memorandum
regarding staff reductions. Mr. Guerrero requested a report on the actual savings for the
staff reductions.
Mayor Rhodes adjourned the meeting for a dinner break at 5:10 p.m.
Mayor Rhodes reconvened the special meeting at 6:00 p.m.
Pursuant to the reduction of employee retirement benefits with Texas Municipal
Retirement Service, Mayor Rhodes recessed the Council Meeting for a closed meeting
pursuant to Article 6252-17, Section 2(e), V.A.C.S., to discuss potential effects of unilaterally
decreasing retirement benefits.
Mayor Rhodes reconvened the Council meeting.
Group Health Expenditure Reductions
City Manager Garza discussed the reduced expenditures in the Group Health Fund
which would provide an additional fund balance amount of $491,186. He further stated that
this amount is an actual reduction in the City's cost for providing employees with health care
insurance. Council Member Slavik inquired whether or not this savings is assured, and Mr.
Garza stated in the affirmative and gave the reasons for such conclusion.
Council Member McComb inquired regarding the health care deductible in the
insurance provided by the City to employees, and Mr. Garza stated that these deductibles
depend upon the option selected and vary in amounts from $250 to $750. Mr. McComb
suggested that the City's obligation include only major illnesses which would increase the
deductible amounts. Mr. Garza stated he would investigate this suggestion.
Early Payment Property Tax Discounts
Relative to the early payment discounts, Mr. Garza stated that this increase involved
the Council deciding whether to continue early payment discounts. If eliminated, an
increase to the fund balance of $480,000 would be realized by the City. Council Member
Guerrero inquired whether or not the due date could be adjusted and a penalty charged for
late payments, and Mr. Garza stated that State law prohibits penalties. Responding to
Council Member Martin's question, Mr. Garza stated that the increase would be realized
because the payments would not be discounted.
Outside Agency Funding
Mr. Garza next discussed the proposed ten percent reduction in outside agency
funding resulting in an increase of fund balance of $64,900. Mr. Garza named the agencies
which would be involved: Heart of Corpus Christi, Corpus Christi Area Economic
Development Corporation, Art Museum of South Texas, Museum of Oriental Culture,
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Special Council Meeting
July 7, 1992
Page 6
Quincentenary Commission, Corpus Christi Symphony, Municipal Arts Commission, Arts
Community Center, and Sister City Committee.
Sidewalk Repair Funding
Mr. Garza next discussed the history of the sidewalk repair program and stated it
would result in an increase of fund balance of $45,000.
Corpus Christi Housing Finance Corporation
Mr. Garza discussed the $800,000 increase in fund balance from the Corpus Christi
Housing Finance Corporation and recommended using this money for investment purposes
and not for operational expenses.
Municipal Court
Relative to Municipal Court, Mr. Garza proposed eliminating one full-time Judge as
of February, 1993, and Mayor Rhodes stated that this proposal had been referred to the
Municipal Court Judge Committee.
In summation, Mr. Garza specified the categories he would recommend for City
Council consideration when adjusting the budget. These suggestions included the following
categories and savings: Solid Waste rate increase of $970,000, the Texas Municipal
Retirement System rate adjustments and not updating service credits for a savings of
$234,542, issuing a Law Enforcement Public Costs/Public Events fee totalling $115,000,
Group Health Fund reduction of $491,186, elimination of the property tax early payment
discount with savings of $480,000, the outside agency funding reduction of $64,900, and the
elimination of a Judge at Municipal Court for a savings of $31,443.
DEBT SERVICE FUND PROPOSED CHANGES
Mr. Garza next gave an overview of the proposed changes in the Debt Service Fund.
He further explained the distributed material which described increases to the fund balance.
These increases consisted of a transfer of interest reserve in the bond fund, an increased
contribution from the Tourist and Convention Fund, and a transfer of revenues from the
Corpus Christi Housing Finance Corporation. A discussion developed and it was
determined that the total expenditure amount of $14,845,651 tabulated on the handout
included the annual debt payment, a beginning balance in the approximate amount of $13.5
million, and revenues from property taxes and interest earnings.
Council Member Martin requested additional information regarding the Tourist and
Convention Fund, and Mr. Garza stated that he would provide this information in a
memorandum to the Council. Mr. Garza then briefly discussed the Tourist and Convention
Center's debt service. Next, Council Member Martin expressed concern regarding rate
increases on any one individual and requested a specific list of what rate increases are being
proposed in the budget before the Public Hearing on July 14, 1992, and Mr. Garza stated
this information is being prepared.
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Special Council Meeting
July 7, 1992
Page 7
Responding to Council Member Martin's inquiry regarding the increase to the fund
balance interest reserve in the amount of $500,000, City Manager Garza replied that this
amount is interest received from the construction accounts used to pay the Debt Service
Fund's annual debt. Mr. Garza further expressed concern regarding the reduction of the
construction accounts.
A discussion developed regarding the proposed increases to the Debt Service Fund,
and Council Member Martin requested a report on the 1993-94 debt service requirements
to determine whether or not a tax increase would be necessary next year. City Manager
Garza stated he would provide this report.
Next, Council Member Martin proposed transfers of $800,000 from the Corpus
Christi Housing Finance Corporation, $500,000 from the construction account interest
reserve bond fund, and increasing the contribution from the Tourist and Convention Fund
in the amount of $100,000 to the Debt Service Fund.
Mr. Garza further suggested that the proposed two cents tax increase could be
designated for the debt service, and operational options could be economized in the General
Fund.
Council Member McNichols inquired that, if in addition to Mr. Martin's proposal,
and if the Debt Service Fund's estimated closing balance for 1992-93, in the amount of
$13,463,859 was decreased to 85 percent, instead of the proposed 91.7 percent, would the
debt service fund requirements be satisfied without an increase in taxes. Mr. McComb
asked if a three percent tax increase is required to maintain a 92 percent closing fund
balance. Mr. Garza stated in the affirmative. A discussion developed and it was
determined that this closing balance would be reduced further by $1.7 million without the
three cent increase and leaving approximately $11.7 million leaving a fund balance of 75
percent. Mr. Garza next stated that the City has a long standing policy of keeping 75
percent in the closing balance and a long standing practice of above 90 percent. Mr. Garza
stated that he would not recommended taking the full amount in one year.
Council Member Slavik inquired regarding the exact amounts needed for the General
Fund and Debt Service Fund, and Mr. Garza briefly discussed the amounts and stated these
amounts would depend on the alternatives used.
Council Member Slavik further inquired regarding the Automobile Use Expense
Fees, and stated that the citizens of Corpus Christi are concerned about this expense.
Mr. Garza summarized the benefits to the City through this plan which included a reduction
in the amount of City -owned vehicles, plus reduced fuel, oil, insurance, and vehicle
maintenance costs. Mrs. Slavik further inquired whether or not the elimination of this
expense would be $100,000 instead of $146,000, and Mr. Garza agreed and discussed the
reasons for such decrease. Mr. Garza next discussed other options to this plan.
Mayor Rhodes called for comments from the audience.
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Special Council Meeting
July 7, 1992
Page 8
Mr. J. E. O'Brien, 4130 Pompano, commented on the Open Meetings Act and
suggested a change in the Debt Service Fund to assure that there will not be a property tax
increase. Mr. O'Brien further commented on the increased expenses in the Park &
Recreation and the Automobile Use Fee.
Responding to Mr. O'Brien's comment regarding the increase in expenses in the Park
& Recreation Department, Mr. Garza stated that the workers' compensation insurance
expense and health care insurance had been budgeted in each individual department this
year and explained the reason for doing so.
Responding to Mr. O'Brien's comment regarding the Open Meetings Act, City
Attorney Bray explained the Attorney General Opinion concerning the Open Meetings Act
which does not require advanced notice of closed discussion on particular subjects.
A discussion developed regarding the cancellation of the August 4, 1992 Regular
Council Meeting, and Mayor Rhodes requested City Secretary Chapa to investigate this
possibility.
f• i i Y t t# i t•• i
There being no further business to come before the Council, Mayor Rhodes declared
the Special Council Meeting adjourned at 7:30 p.m. on July 7, 1992.
!• s=! t F i t* i i!
I HEREBY CERTIFY that the foregoing is a true and correct copy of the Minutes
of the Special Council Meeting of the City of Corpus Christi of July 7, 1992, which were
approved by the City Council on July 14, 1992.
WITNESSETH MY HAND AND SEAL, this the 21st day of July, 1992.
Armando Chapa
City Secretary
SEAL