Loading...
HomeMy WebLinkAboutMinutes City Council - 12/22/1992MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting December 22, 1992 2 p.m. PRESENT Mayor Mary Rhodes Mayor Pro Tem Mary Pat Slavik Council Members: Cezar Galindo Leo Guerrero Edward Martin Joe McComb * Dr. David McNichols Betty Jean Longoria Clif Moss 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. The invocation was delivered by Father Christos P. Matos, St. Nicholas Greek Orthodox Church, following which the Pledge of Allegiance to the Flag of the United States was led by Council Member Longoria. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Rhodes called for approval of the Minutes of the Regular Council Meeting of December 15, 1992. City Secretary Chapa advised that there was a correction on page 15, fifth paragraph, clarifying Council Member Martin's comments to a citizen. Mayor Rhodes then proclaimed them approved as amended. * * * * * * * * * * Council Member McComb arrived at the Council Meeting at 2:05. Council Member Longoria presented a Certificate of Commendation to Ms. Sue Nelson, Superintendent of Tuloso-Midway Independent School District, commending the Tuloso-Midway Middle School. Ms. Nelson introduced several of Tuloso-Midways school MICROFILMED Minutes Regular Council Meeting December 22, 1992 Page 2 board members and staff present at the day's meeting and thanked the Council for their support. A presentation on the Texas Municipal Retirement System (TMRS) and Salary and Benefits Survey Project followed. City Manager Garza explained the salary and benefits study analysis previously distributed to the Council. Through the use of charts, he compared the City's vacation, holiday, sick leave, long-term disability plan, insurance and retirements benefits, and salaries to local private and public sector organizations. Council Member Martin inquired whether the City offered social security benefits to City employees. City Manager Garza replied in the affirmative, and stated that the one exception was the City's firefighters. Mr. Garza next reviewed and compared the City's benefit package to those offered by surveyed cities in Texas and by cities of approximate size to Corpus Christi on the national level. Responding to an inquiry from Council Member Martin about a referenced percentage of an employer's contribution, Mr. Garza stated that he would provide a verification of the figure. Mr. Garza further stated that the City has a defined contribution plan with a cap of 11.5 percent on the City's contribution. Mr. Garza next reviewed average retirement benefit levels of present annuitants under TMRS and stated that the City is generally below local, state, and national levels. A brief discussion followed. Responding to Mr. Galindo's inquiry, Mrs. Cynthia Garcia, Director of Human Resources, commented that the City's 1992 turn -over employment rate was 6.9 percent. Further, Mr. Garza commented that the City has approximately 50 retirees annually. Council Member Martin inquired about the percentage of salary an employee would receive upon retiring after twenty years of employment with the City at the appropriate age. In response, City Manager Garza introduced Mr. Gary Anderson, representative of Texas Municipal Retirement System. Mr. Anderson commented that, since TMRS was a defined contribution plan, and not a defined benefit plan, there was no definite formula to calculate specific retirement benefits. Council Member Martin suggested using caution when determining average retirement rates because the rates are influenced by different retirement options available to employees. Mr. Anderson explained that, on a system -wide basis, the average annuitant is a 62 year old male with twenty-five years of service. He further stated that male retirees usually choose a joint survivor option which results in a lower annuity. Minutes Regular Council Meeting December 22, 1992 Page 3 Council Member Martin next inquired whether an average annuitant would have a pension eligibility option in the 55 to 60 percent pre -retirement salary range. Mr. Anderson stated that, under the City's plan, the annuitant could be in this range. Mr. Martin inquired whether the pension percentages could be as high as 75 percent, and Mr. Anderson stated that, when the employee had approximately 35 to 40 years of service with the City in a high salary range, this could be possible. Mr. Martin inquired if a person served his/her working career at the City, the 50 to 70 percent pension range would be normal, and Mr. Anderson stated that this range would be more than normal. Mr. Anderson commented that the federal government had determined that a reasonable level of retirement income (maintaining the current standard of living) would be between 60-80 percent of a person's pre -retirement income which would need to be replaced through primary retirement sources. Council Member Moss stated that in the City's two -to -one match, the variable would be the City's match, and Mr. Anderson agreed. Mr. Anderson further stated that City contribution rates vary from year to year depending on the experience of the City and the rate of employee turnover. Additionally, Mr. Moss inquired whether the current 10.74 percent under consideration was the twenty-five year average, and, therefore, the average of actuarial determination over 25 years. Mr. Anderson answered that the rate for each city is calculated separately by the actuary. Mr. Anderson further stated that the employer contributions to TMRS are utilized when a person retires and draws a monthly benefit by virtue of employment with the City. At this point, the City's contribution rate is calculated based upon the individual characteristics of the City such as age and service characteristics of the employee group. Council Member Moss inquired whether fluctuating interest rates would affect the fund. Mr. Anderson explained that by law TMRS's Board of Trustees set the rate of interest credited to accounts within the retirement system each year based on the investment return of the system. He stated that the rate as of December 31, 1992 would be 11 percent, and the rate for the past nine years had been 11.3 percent. He stated that the interest rate is gradually reducing because the system is not presently investing new funds at the same rate of return as in prior years. Council Member Moss inquired, if the City proceeds with Council Member McComb's prior proposal to reduce the matching ratio of the City's contribution, would it be retroactive and would people receive credit for the prior two -to -one contributions. Responding, Mr. Anderson stated that, if the City made a change in the matching ratio on a certain date, the reduction would apply only to benefits earned after that date. Council Member Moss inquired about the effects a reduced City contribution would have on current retirees. Mr. Anderson stated that singularly this concept would not affect current retiree's benefits, but that the effect of not enrolling new employees in the retirement system on an actuarial basis would be to erode the funding base of the plan. Responding to Council Member McComb's inquiry, Mr. Anderson explained the funding sources for contributions to the TMRS plan. He stated that existing retirees receive monthly annuities consisting of two parts. The first part is the current service benefit which is the obligation of TMRS (from the City's actuarially -determined contributions paid to Minutes Regular Council Meeting December 22, 1992 Page 4 TMRS and placed in the City of Corpus Christi's TMRS Accumulation Fund account) and is based on the member's (employee's) contributions in the fund up to the time of retirement. He next explained the second part, updated service credits, which are amortized over a twenty-five year period and that additionally fund benefits on top of the current service benefits. He next stated that, if new enrollments did not continue, the payroll base which is funding retirement benefits would decline because people would continue to leave the City. In summation, Mr. Anderson stated that the current service credit portion is fully funded, but the updated service credit portion is contingent upon the City's funding of the program. A brief discussion developed concerning current retirement annuity contributions. Council Member Moss asked about the decrease in the City's contribution rate (from 10.74 percent to 10.10 percent) if the Council voted against updating service credits. City Manager Garza stated that by adopting updated services credits (at a contribution rate of 10.07 percent), the result would be a .03 percent reduction in cost to the City for 1993 which would be approximately $19,000. He further stated that, if the updated service credits were not adopted, the City's contribution rate would be 10.10 percent the first of January of 1993. Returning to earlier comments, Council Member Martin commented that, if the City were to provide a different match on a certain date for new employees, the City could contribute funds for the updated service credits to protect existing retirees. Mr. Anderson stated that State law did not allow TMRS to provide a divided system. Mr. Martin then commented that, if the law were changed to allow a split structure, current employees and current retirees would not be adversely affected, only future unhired employees. Mr. Anderson agreed. Mr. Anderson next discussed the request submitted to the TMRS Board by the City of Lubbock to lower their matching ratio for new employees. He stated that, after significant consideration, the Board decided not to support or include such legislation in its package to the State Legislature. He next discussed possible consequences to the City, as well as TMRS, resulting from such a change. Council Member Martin expressed concern that the TMRS Board did not support flexibility in the system. Responding to Council Member McComb, Mr. Anderson discussed current State law governing the TMRS Board. Council Member McComb stated that he felt the City has an obligation to current employees to continue the two -to -one match, but expressed concern that a change could not be made concerning new employees. Mr. Anderson stated that the City could not discontinue present member coverage, but could elect not to enroll new employees. City Manager Garza commented that the result of this policy and current law could compel cities to opt out of the TMRS system because the choices are limited. Council Member Martin suggested that the City of Corpus Christi and the City of Lubbock make Minutes Regular Council Meeting December 22, 1992 Page 5 a presentation to TMRS requesting support to change the laws governing the contribution rate which would also protect the system. Responding to Council Member Martin, Mr. Anderson discussed the short and long term effects a reduction in the City's match would have on TMRS as well as participating cities. Mr. Anderson next discussed the City's present assets and unfunded actuarial liability held by TMRS. A lengthy discussion followed. Council Member Guerrero expressed the importance of ascertaining the cost to the taxpayers for the program. Responding to Council Member McNichols, City Manager Garza explained that Item 2 was updating service credits and that adopting such ordinance would reduce the City's contribution from 10.10 percent to 10.07 percent. Mr. Garza stated that prior City policy had been to adopt the updated service credits, and recommended adoption. Council Member Slavik raised issues which could be addressed at a workshop on the matter. Council Member Martin commented that he supported the updated service credits because it kept the City current with costs. Mr. Martin further inquired whether the City should have a financial goal of reducing the amortization period. City Manager Garza commented that a shorter amortization period would eventually cause the contribution rate to be prohibitive. A brief discussion followed. Mayor Rhodes expressed appreciation to Mr. Anderson. 2. ORDINANCE NO. 021536 Ordinance adopting the Texas Municipal Retirement System (TMRS) actuarial determined contribution rate for the City of Corpus Christi of 10.07% for 1993 which will reduce the City's 1993 TMRS Contribution Rate by authorizing updated service credits for qualifying City employees and adjusting annuities for retirees and beneficiaries of deceased retirees equal to 40% of the percentage change in the Consumer Price Index (CPI). An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." Council Member McComb discussed the possibility of reducing the City's contribution rate from the two -to -one match to a one-to-one match for new employees. A brief discussion developed, and Council Member McComb made a motion to instruct the City Manager to place the discussion and consideration of City contribution amounts for future Minutes Regular Council Meeting December 22, 1992 Page 6 employees on the agenda, seconded by Council Member Slavik. Mayor Rhodes called for a vote and the motion passed unanimously. Council Member Martin also suggested that the discussion include seeking a change in the law which would allow a more flexible system. * * * * * * * * * * * * Mayor Rhodes recessed the Regular Council Meeting for the Meeting of the Corpus Christi Housing Improvement Corporation. Mayor Rhodes reconvened the Regular Council Meeting. * * * * * * * * * * * Mayor Rhodes called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 4 through 19, and Council Members requested that Items 4, 5, 7, 9, 13, 14, and 16 be withheld for discussion. Mayor Rhodes announced that Item 16 would be amended at the day's meeting. City Secretary Chapa polled the Council for their votes and the following were passed: 6. M92-339 Motion authorizing the appointment of an ad hoc Art Selection Panel to select permanent, public artwork for the proposed Northside Senior Center as per the Public Art Ordinance. The foregoing motion passed by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." 8. M92-341 Motion authorizing the City Manager or his designee to execute an agreement with the Westside Little League to provide $53,400 from the FY 92 CDBG Program for improvements to the little league baseball fields at 4235 Baldwin. Improvements will include drainage, paving of the parking lot, repairs and plumbing to the restrooms and rebuilding dugouts. The foregoing motion passed by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." Minutes Regular Council Meeting December 22, 1992 Page 7 10. ORDINANCE NO. 021537 Ordinance appropriating $3,200,000 from the Capital Improvement Fund, and authorizing the transfer of this amount into the General Debt Service Fund. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." 11. ORDINANCE NO. 021538 Ordinance appropriating $30,277 from the Lexington Museum Bond Fund No. 586 for public improvements related to the museum. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." 12. ORDINANCE NO. 021539 Ordinance authorizing the conveyance of 5.79 acres of land near Lake Corpus Christi, known as the City of Mathis Lift Station, to the City of Mathis, in consideration of appraised value, for that City's use in enlarging its water treatment plant. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." 15. FIRST READING ORDINANCE Ordinance amending City Code, Section 29-4(f), to direct that the Presiding Judge assure municipal court hours sufficient to efficiently conduct court business consistent with available resources, and to eliminate mandatory night court. The foregoing ordinance passed on first reading by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." 17. FIRST READING ORDINANCE Authorizing the City Manager or his designee to execute a five-year lease agreement with option to renew for five years upon notice to the City Manager thirty days prior to expiration, with the United States of America (National Weather Service) for 1,628 net square feet on second floor of Airport Tower Building and parking space adjacent thereto at the Corpus Christi International Airport, for a monthly fee of $1,628. Minutes Regular Council Meeting December 22, 1992 Page 8 The foregoing ordinance passed on first reading by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." 18. FIRST READING ORDINANCE An ordinance amending the Code of Ordinances, Chapter 53, Traffic, Section 53-254, Schedule V, Increasing State Speed Limits in Certain Zones, and providing for the increase or decrease of speed limits upon certain streets within the City of Corpus Christi. The foregoing ordinance passed on first reading by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." 19. FIRST READING ORDINANCE Amending the City Code of Ordinances, Chapter 53, Traffic, Section 53-255, Schedule VI, Decrease of State Law Maximum Speed, and providing for the decrease of the speed limit on Chaparral Street from Coopers Alley to Interstate Highway 37 within the City of Corpus Christi. The foregoing ordinance passed on first reading by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." Pursuant to Item 4, motion awarding a contract in the amount of $45,945 to Turf & Irrigation Hardware, Inc. to apply hydroseeding on finished areas of the Westside Solid Waste Landfill, Council Member McNichols inquired about the possibility of irrigating the area with effluent to reduce costs. Mr. Carl Crull, Director of Engineering, explained the project costs and stated that the cost for water was minimal. Council Member Moss inquired about the inspection cost, and Mr. Crull explained the cost was an estimate and would be adjusted based upon actual time. Relative to Item 5, Council Member Galindo expressed concern about the difference in the high and the low bids, and Mr. Crull explained the City's standard inquiry when such a difference occurred. He further stated that installing guardrails was a specialty of the low bidder. Pursuant to Item 7, motion authorizing the City Manager to execute a contract with ACTION for the continuance of the Retired Senior Volunteer Program, Council Member Moss inquired about the project's funding source. Mr. Tom Utter, Director of Development Services, explained that the federal grant period was different from the City's fiscal year requiring funds from the 1992-93 budget as well as the 1993-94 budget. Minutes Regular Council Meeting December 22, 1992 Page 9 Relative to Item 9, motion authorizing the City Manager to execute Industrial District Agreement No. 8B with Robert Sanchez, dba, Robert Equipment Service, Council Member Galindo inquired about the referenced payment in lieu of taxes. City Manager Garza briefly explained the payment and discussed benefits of the Industrial District agreement to the businesses as well as the City. Responding to Council Member McComb, Mr. Utter explained present City service fees (water, police, and fire) as opposed to in -city limit fees. Mr. McComb commented that this appeared to be an inappropriate Industrial District use, and Mr. Utter explained that the business repaired heavy equipment from businesses located in the Industrial District. Mr. Utter further stated that the business would pay property taxes equaling an in -city tax assessment. Mayor Rhodes opened the discussion on Items 13a and 13b, ordinance and motion regarding the FY 92 HOME Program. Mr. Kelly Elizondo, Director of Community Development, responded to several questions from Council Member Galindo regarding project funding and administrative costs. Mr. Utter responded to Council Member Moss stating that the project did not presently require a match of City funds, but would require this match in the future. Pursuant to Item 14, ordinance adopting the National Electrical Code, Council Member Martin expressed appreciation for the prompt response to his earlier request to update the code. Mr. Martin further inquired whether the Code changed the requirements for licensed electricians, and Mr. Utter stated that these requirements remained the same. Mayor Rhodes announced that Item 16, a one year lease agreement with the U. S. Department of Transportation, Federal Aviation Administration at the Corpus Christi International Airport, required an amendment extending the renewal option period. Mayor Rhodes then moved to amend the ordinance extending the renewal option to twenty years, seconded by Council Member Moss. Mayor Rhodes called for a voice vote and the motion passed unanimously. City Secretary polled the Council for their votes as follows: 4. M92-337 Motion awarding a contract in the amount of $45,945 to Turf & Irrigation Hardware, Inc. to apply hydroseeding on finished areas of the Westside Solid Waste Landfill (Phase III). The foregoing motion passed by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." Minutes Regular Council Meeting December 22, 1992 Page 10 5. M92-338 Motion awarding a contract in the amount of $108,000 to Ronald R. Wagner & Company, Inc. to construct metal guardrails along Airport Road, Bear Lane, Horne Road and Tiger Lane. The foregoing motion passed by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." 7. M92-340 Motion authorizing the City Manager or his designee to execute a contract with ACTION, an independent national volunteer agency, for the continuance of the Retired Senior Volunteer Program (RSVP) in 1993-94. The total budget proposed for 1993-94 is $112,000. The foregoing motion passed by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." 9. M92-342 Motion authorizing the City Manager to execute Industrial District Agreement No. 8B with Robert Sanchez, dba, Robert Equipment Service on Lot 6, Block 1, Goldston Addition. The foregoing motion passed by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." 13a. ORDINANCE NO, 021540 Ordinance amending ordinance #21463 to amend the FY 92 HOME program budget to provide program funding for administration as required by federal statute. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." 13b. M92-343 Motion amending the FY 92 HOME Program Description to incorporate the latest HOME program requirements. The foregoing motion passed by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." Minutes Regular Council Meeting December 22, 1992 Page 11 14. FIRST READING ORDINANCE Ordinance adopting the National Electrical Code, 1993 Edition; amending Division 2, Electrical Code of Article III Electrical, of Chapter 13 Buildings; Construction and Related Operations; Housing and Housing Premises Standards of the City Code of Ordinances; providing for additions, deletions, and changes to said Code; providing for licensing requirements for electricians; establishing permit requirements, inspection fees, and penalties; providing a savings clause; repealing all ordinances in conflict. The foregoing ordinance passed on first reading by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye? 16. FIRST READING ORDINANCE Authorizing the City Manager or his designee to execute a one year lease agreement to include an option to renew annually for twenty years with the U.S. Department of Transportation, Federal Aviation Administration, in consideration of establishment, maintenance, and operation of Omnidirectional Approach Lighting Systems at the Corpus Christi International Airport. The foregoing ordinance passed as amended on first reading by the following vote: Rhodes, Galindo, Guerrero, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye." * * * * * * * * * * * Mayor Rhodes called for consideration from the Regular Agenda. Mayor Rhodes opened the required public hearing for the closure and abandonment of certain streets and alleys within the Naval Station Clear Zones. Mayor Rhodes called for comments from the audience and there were none. Council Member Martin inquired whether the City required replatting of the property. Mr. Crull stated that staff was recommending that the City waive the platting requirements since the property would be utilized for clear zone use and the surrounding land was also owned by the Federal Government. Council Member Guerrero moved to close the public hearing, seconded by Council Member Longoria, and passed unanimously. * * * * * * * * * * * Mayor Rhodes announced the public hearing on the following zoning application: Minutes Regular Council Meeting December 22, 1992 Page 12 21. Case No. 1192-1, Joseph Rosenberg: A change of zoning from "AB" Professional Office District to "B-1" Neighborhood Business District on Lot 6, Block 34, Windsor Park Unit 4, located on the east side of Everhart Road, approximately 330 feet south of Janssen Drive. Mayor Rhodes stated that both the Planning Commission and Staff recommends denial of the "B-1" District, and in lieu thereof, approval of a Special Permit for a floral shop subject to a site plan with four special conditions. Mayor Rhodes asked if the special permit is acceptable to the applicant, and the applicant responded in the affirmative. No one opposed the zoning request. Mayor Rhodes called for public comment on the zoning application and there was none. Council Member McNichols moved to close the public, seconded by Council Member McComb, and passed unanimously. City Secretary Chapa polled the Council for their vote and the ordinance passed: 21. ORDINANCE NO. 021541 Amending the Zoning Ordinance upon application by Joseph Rosenberg by granting a Special Permit for a floral shop subject to four (4) conditions on Lot 6, Block 34, Windsor Park Unit 4. An emergency was declared and the foregoing ordinance passed by the following vote: Rhodes, Galindo, Longoria, Martin, McComb, McNichols, Moss, and Slavik voting "Aye"; Guerrero absent. * * * * * * * * * * * * * Mayor Rhodes called for the City Manager's report. City Manager Garza expressed appreciation to the Council for their support during the year and wished them a Merry Christmas. Mayor Rhodes called for Council concerns and reports. Council Member Martin inquired whether bids were received on the City's 800 mhz radio system, and City Manager Garza replied in the affirmative. Next, Mr. Martin commented on a suggestion he received from an individual regarding the radio system. Minutes Regular Council Meeting December 22, 1992 Page 13 In further response to Council Member Martin, City Manager Garza gave an update on Phoenix Group Holdings, Inc.'s surety bond for the golf courses. A brief discussion ensued regarding the delay in the project. Council Member McNichols expressed appreciation from the City Council to the employees of the City and further to the men and women serving in the armed forces. Mayor Rhodes extended an invitation to the public for the upcoming annual Christmas dinner at the Bayfront Plaza on Thursday, December 24, 1992. She stated that interested parties could contact her office for more information. Mayor Rhodes called for petitions from the audience, and there were none. There being no further business to come before the Council, Mayor Rhodes declared the Council Meeting adjourned at 4:12 p.m. on December 22, 1992. * * * * * * * * * * * * * I HEREBY CERTIFY that the foregoing is a true and correct copy of the Minutes of the Regular Council Meeting of the City of Corpus Christi of December 22, 1992, which were approved by the City Council on January 5, 1993. WITNESSETH MY HAND AND SEAL, this the 5th day of February, 1993. jy7Armando Ch pa t City Secretary SEAL