Loading...
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 Minutes 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 Minutes 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. Minutes 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 Minutes 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, Minutes 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. Minutes 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. Minutes 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