HomeMy WebLinkAboutMinutes City Council - 06/30/1998I 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 June 30, 1998, which were approved by
the City Council on July 14, 1998.
WITNESSETH MY HAND AND SEAL, this 14th day of July, 1998.
Armando Chapa
City Secretary
SEAL
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Council Meeting
June 30, 1998
2:00 p.m.
PRESENT
Mayor Samuel L. Neal Jr.
Mayor Pro Tem Dr. Arnold Gonzales
Council Members:
Javier D. Colmenero
Betty Jean Longoria
John Longoria
Edward A. Martin
Dr. David McNichols
ABSENT
Melody Cooper
Alex L. Garcia Jr.
City Staff:
City Manager Bill Hennings
City Attorney James R. Bray Jr.
Assistant City Secretary Mary Juarez
Mayor Neal called the meeting to order in the Council Chambers of City Hall.
The invocation was delivered by Mayor Neal, following which the Pledge of Allegiance to
the flag of the United States was led by Council Member Colmenero.
Assistant City Secretary Juarez called the roll and verified that the necessary quorum of the
Council and the required charter officers were present to conduct the meeting. Mayor Neal called
for approval of the minutes of the regular Council meeting of June 23, 1998, and there being no
corrections, he proclaimed them approved as presented.
The Mayor then called for petitions from the audience, and there were none.
Council Member McNichols pointed out that the recent expected rains have not materialized,
and the reservoir system's capacity is down to about 40% In addition, the Lake Texana pipeline will
not be completed until August. He suggested that the Regional Water Supply Task Force review the
management of the area's current water supplies, then have the Water Conservation Advisory
Committee examine the larger issue of developing ways to save water over the long term throughout
the entire region, such as through creating xeriscape landscaping. Dr. McNichols then made a motion
to ask the Regional Water Supply Task Force to review the current water supply and bring back a
recommendation to the City Council. The motion was seconded by Council Member Colmenero.
Council Member Martin said he did not object to asking the Regional Water Supply Task
Force to look at the whole issue, provided that it is not worded as an instruction to take some action.
He also asked why the task force was not already reviewing the issue, saying he thought that was
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Regular Council Meeting
June 30, 1998
Page 2
one of their major charges. Dr. McNichols replied that for a time, it appeared the Lake Texana
pipeline would be completed before any problems arose with the area's water supply levels.
However, the extremely high heat has caused excessive evaporation in the reservoirs. He said due
to the regional nature of the water supply, the Regional Water Supply Task Force is the entity that
can review that issue.
Mayor Neal called for a voice vote on Dr. McNichols' motion, and it passed (Cooper and
Garcia absent).
* * * * * * * * * * * * *
Mayor Neal called for consideration of consent motions, resolutions, ordinances and
ordinances from previous meetings on Items 2-8, and an audience member requested that Item 2 be
withheld for discussion. Assistant City Secretary Juarez polled the Council for their votes and the
following were passed:
3. M98-229
Motion approving a supply agreement with Fisher Scientific Company, Houston, Texas for
laboratory supplies consisting of various chemicals and supplies in accordance with Bid
Invitation No. BI -0131-98, based on low bid for an estimated annual expenditure of
$34,057.25. The term of the contract will be for twelve months with an option to extend for
up to two additional twelve month periods subject to the approval of the supplier and the
City Manager or his designee. Funds have been budgeted in FY 97-98 and requested for FY
98-99 by the Water and Health Departments.
The foregoing motion passed by the following vote: Colmenero, Gonzales, B. Longoria, J.
Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper and Garcia absent.
4. M98-230
Motion authorizing the City Manager or his designee to execute a construction materials
testing and inspection contract in the amount of $25,700 with Professional Service
Industries, Inc. for the Up River Road Water Transmission Main Project - Phase III.
The foregoing motion passed by the following vote: Colmenero, Gonzales, B. Longoria, J.
Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper and Garcia absent.
5. M98-231
Motion authorizing the City Manager or his designee to execute a contract in the amount of
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Regular Council Meeting
June 30, 1998
Page 3
$55,713 with ECS Construction for ADA modifications at the Dr. W.R. Metzger Health
Center and the Corpus Christi Museum of Science and History to bring high -use, city -owned
facilities into compliance with the Americans with Disabilities Act and Article 9102 of the
Texas Civil Statutes, Elimination of Architectural Barriers Program.
The foregoing motion passed by the following vote: Colmenero, Gonzales, B. Longoria, J.
Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper and Garcia absent.
6. M98-232
Motion directing the City staff to notify the Corpus Christi Bay National Estuary Program
that the City of Corpus Christi requests that the adoption of the Bays Plan carry with it a
proviso that the Plan cannot be amended without approval of all of the participants.
The foregoing motion passed by the following vote: Colmenero, Gonzales, B. Longoria, J.
Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper and Garcia absent.
7. ORDINANCE NO. 023354
Ordinance authorizing the City Manager or his designee to execute a use privilege agreement
with the Calallen Independent School District to install and maintain an aerial
communications cable within portions of the Cornett Drive, Redbird Lane, Calallen Drive,
Mountain Trail, River Canyon Drive and Wildcat Drive street rights-of-way as shown on
Exhibit A to provide a communication link between school buildings; Independent School
District must execute a pole attachment agreement with Central Power & Light; and
establishing a fee of $2,056.50.
An emergency was declared and the foregoing ordinance passed by the following vote:
Colmenero, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye";
Cooper and Garcia absent.
8. ORDINANCE NO. 023355
Ordinance closing and abandoning a 1,394 -square foot portion of a 10 -foot wide utility
easement out of Lots 1 and 2, Block 4, Colonia Hidalgo Addition, subject to compliance with
the specified conditions and the owner, Joseph Pilon, replatting the property within 180 days
at his expense.
An emergency was declared and the foregoing ordinance passed by the following vote:
Colmenero, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye";
Cooper and Garcia absent.
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Regular Council Meeting
June 30, 1998
Page 4
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 2, AMCC conference.
Mr. Leon Perez, 904 Buford, said he did not think it was a good idea for Corpus Christi to
host the AMCC conference because the city's streets need repairs and there is trash everywhere. He
said the situation might improve with the proper guidance, but he expressed doubts. He also
criticized the Lake Texana pipeline.
Assistant City Secretary Juarez polled the Council for their votes as follows:
2. RESOLUTION NO. 023353
Resolution expressing the Corpus Christi City Council's desire to host the Year 2000
Association of Mayors, Councilmembers and Commissioners annual conference.
The foregoing resolution passed by the following vote: Colmenero, Gonzales, B. Longoria,
J. Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper and Garcia absent.
*************
Mayor Neal opened discussion on Item 9, Greenwood Wastewater Treatment Plant (WWTP)
expansion. He called for comments from the audience, and there were none.
Council Member Martin asked what the monetary breakdown would be upon separating the
expansion of the Greenwood WWTP from 6 million gallons per day (MGD) to 8 MGD, versus the
upgrade to the 10/15/3 permit. Mr. R.H. Shackelford, Director of Engineering Services, said that out
of the total construction cost of $12,537,000, staff estimated that the expansion will cost $5,950,000.
Mr. Martin pointed out that the city will have to pay about $7 million --more than the expansion
itself --to upgrade the permit by direction of the Texas Natural Resource Conservation Commission
(TNRCC). Mr. Shackelford noted that a significant part of the permit upgrade cost involves
modernizing the sludge handling process, although the total cost is expensive.
In response to other questions from Mr. Martin, Mr. Shackelford said there was not a
requirement in the contract that the contractor use local subcontractors. He added that one of the
contract terms is for 45% minority participation and 15% minority business enterprise participation.
Mr. Martin asked if any local contractors could complete this project. Mr. Shackelford said there are
some local firms that have worked on smaller wastewater treatment plants, but no local companies
chose to bid on this project.
Replying to Council Member McNichols, Mr. Shackelford said the higher permit treatment
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Regular Council Meeting
June 30, 1998
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requirements (10/15/3) for the Greenwood Plant were imposed by the TNRCC in 1995 with an
effective date of January 1996. Consequently, staff prepared the Oso/Greenwood Wastewater
Facilities Implementation Plan, which was approved by the Council in March 1997.
City Manager Hennings added that when the preliminary feasibility study was conducted for
the effluent return project, he and former Mayor Mary Rhodes went to Austin to appeal the TNRCC
staffs decision requiring the more stringent 10/15/3 permit to the state commission; however, they
were unsuccessful in that appeal. He said TNRCC staff has said they support the city's effort to
move the effluent to Nueces Bay, but the city then receives total resistance to the concept of lesser
stream standards for the Greenwood Plant. Mr. Carl Crull, Assistant City Manager for Public Works
and Utilities, further explained the stream standards issue. A brief discussion ensued.
Council Member Gonzales asked about local participation, and Mr. Shackelford said the city
requires 75% local participation for architectural engineering contracts, but construction contracts
are competitively bid. City Attorney Bray further explained that in bid contracts such as this, the city
must accept the lowest responsible bidder and by law it cannot require local participation.
Mr. Shackelford reiterated that local contractors had been notified about the project and
attended the pre-bid conferences, but they chose not to bid; five bids from non -local companies were
received instead. He added that staff can provide the Council with a list of local companies that bid
on this project as subcontractors.
In response to Mr. Martin, Mr. Hennings said the feasibility study prepared by the consultant
outlined the alternative of moving all of the effluent away from Oso Creek. He said city staff
discussed that issue with TNRCC staff, and it was their opinion that the city could not reduce the
flows beyond their existing rate, which the city did not dispute.
Assistant City Secretary Juarez polled the Council for their votes as follows:
9.a. M98-233
Motion authorizing the City Manager or his designee to execute a construction contract with
Craig, Sheffield & Austin, Houston, Texas, in the amount of $12,537,000 for the Greenwood
Plant expansion from 6 MGD to 8 MGD and upgrade to 10/15/3 permit.
The foregoing motion passed by the following vote: Colmenero, Gonzales, B. Longoria, J.
Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper and Garcia absent.
9.b. M98-234
Motion authorizing the City Manager or his designee to execute a construction materials
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Regular Council Meeting
June 30, 1998
Page 6
testing and inspection contract in the amount of $16,000 with Gulf Coast Testing
Laboratories, Inc. for the Greenwood Plant expansion from 6 MGD to 8 MGD and upgrade
to 10/15/3 permit.
The foregoing motion passed by the following vote: Colmenero, Gonzales, B. Longoria, J.
Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper and Garcia absent.
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 10, downtown drainage improvement plan. He called
for comments from the audience, and there were none.
In response to a question from the Mayor, Mr. Shackelford said as staff analyzed the cause
of the flooding in the downtown area in April 1997, they found that there was a crossover of
stormwater between drainage basins there. He said a comprehensive view of the drainage system
needs to be developed so that the repair projects can be prioritized. He added that some corrective
measures have already been implemented.
Responding to Council Member Martin, Mr. Shackelford said staff sent a large request for
proposals (RFP) containing several projects to all of the engineering firms in Corpus Christi, and
Russell-Veteto Engineering was the only firm that applied for it. Mr. Gene Urban added that the RFP
contained about 13 different projects, and most of the engineers tried to make a proposal on an
individual project in which they specialized, rather than all of them as a whole. Mr. Urban also
referred to previous comments on Item 9 regarding local participation. He said there are not many
large local contractors who work on wastewater treatment plants, and the bond requirements for a
$12.5 million project are too high.
Council Member Colmenero asked about the downtown drainage plan, and Mr. Shackelford
said the study will help determine areas where taps have occurred on the system and how the
increased development has affected the amount of runoff that is generated. Assistant City Secretary
Juarez polled the Council for their votes as follows:
10. M98-235
Motion authorizing the City Manager or his designee to execute a contract with Russell-
Veteto Engineering, Inc. in the amount of $158,000 for engineering services for the
Downtown Drainage Implementation and Improvement Plan.
The foregoing motion passed by the following vote: Colmenero, Gonzales, B. Longoria, J.
Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper and Garcia absent.
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Regular Council Meeting
June 30, 1998
Page 7
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 11, grant for 10 additional police officers. He called
for comments from the audience, and there were none. Assistant City Secretary Juarez polled the
Council for their votes as follows:
11.a. M98-236
Motion authorizing the City Manager or his designee to execute all documents necessary to
accept a $750,000 Universal Hiring Program grant from the U.S. Department of Justice,
Office of Community Oriented Policing Services for ten (10) additional officers.
The foregoing motion passed by the following vote: Colmenero, Gonzales, B. Longoria, J.
Longoria, Martin, McNichols, and Neal voting "Aye"; Cooper and Garcia absent.
11.b. ORDINANCE NO. 023356
Ordinance appropriating a Universal Hiring Program Grant in the amount of $750,000 from
the U.S. Department of Justice, Office of Community Oriented Policing Services in the No.
162 Federal/State Grants Fund to pay salaries and benefits for ten (10) additional police
officers.
An emergency was declared and the foregoing ordinance passed by the following vote:
Colmenero, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye";
Cooper and Garcia absent.
Council Member Martin pointed out that upon the approval of the last several items --which
are necessary to operate the city --the Council just authorized the expenditure of the same amount of
money that it will cost to repair the Wesley Seale Dam.
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item M., proposed FY 98-99 operating budget.
City Manager Hennings referred to the Summary of Net Appropriation in the proposed
budget, and he explained that the city uses a fund accounting approach in which funds have to be
appropriated before they are available to be spent. He said the budget contains some interfund
spending; for example, the proposed budget will appropriate the approximately $3 million in the
Crime Control and Prevention District Fund, and those monies will be transferred to the General
Fund to pay for the 10 additional police officers, among several other items. He said the $3 million
will also be appropriated in the General Fund. Consequently, when all the appropriations are added
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June 30, 1998
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together, it results in a larger amount than the actual expenditures. Mr. Hennings said page "ii" in
the proposed budget shows the expenditures without the duplicate appropriations.
The City Manager said there are also two other sources of spending that are not included in
the operating budget: the capital projects fund (although the debt service is reflected in the operating
budget), and the grants, which are accounted for in a separate federal and state grants fund. With
regard to the net appropriations in the operating budget (page "ii"), the FY 97-98 budget totaled
$249,626,723; and the proposed FY 98-99 net appropriations totaled $266,752,815, resulting in an
increase of $17,126,092. He said staff had sent the Council a detailed reconciliation of the changes
specifically in the proposed General Fund budget (the net appropriation for FY 97-98 is
$96,539,142, and for FY 98-99 it is $100,701,060).
Mr. Hennings then referred to information he had provided to the Council, the first being a
tabulation of the distribution of computer replacement bonds debt service in the General Fund, and
a memo regarding the impact of shifting the G.O. Debt tax rate. He explained that for FY 98-99, staff
has proposed that the cost of the computer acquisition project ($410,000) be paid from the G.O. Debt
Service Fund, which would result in no expenditures from the General Fund.
He said the alternative would be to pay the $410,000 out of the General Fund and allocate
it among the department budgets as shown on the tabulation; that would result in the need to provide
for $410,000 in revenues in the General Fund. In his memo, Mr. Hennings said one way to do that
would be to change the allocation of the tax rate so that the tax rate for the Debt Service Fund is
slightly decreased and the tax rate for operations and maintenance (General Fund) is slightly
increased.
The City Manager said that in his budget message he had suggested that the Council consider
amending the rate ordinance to reduce the 6% rate increase. He referred to the Gas Department
proposed budget, which includes $23,856,176 in revenues and $23,549,445 in expenditures. In the
Wastewater Department, revenues are expected to be $26,061,204, and expenditures are expected
to be $26,538,469; and in the Water Fund (which includes Stormwater activities), anticipated
revenues are $56,360,571, and anticipated expenditures are $58,479,003.
Mr. Hennings said the Utility Fund is stronger today than anticipated when the utility rate
increases were initiated four years ago. Consequently, staff has concluded that a 6% increase in gas
rates may not be needed, and a smaller increase than 6% may be warranted for the water rates. He
staff will provide additional information, including a forecast of the funds, at the next Council
meeting on July 14`h
Ms. Valerie Gray, Stormwater Superintendent, said the Stormwater Department is one of the
city departments that receives most of the citizen concerns. In an effort to address those concerns,
the Stormwater Department is proposing to increase its budget to include 26 new positions and
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Regular Council Meeting
June 30, 1998
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equipment for enhanced field maintenance operations and two additional environmental quality
specialists. There is also additional funding for the preparation and reapplication of the city's
NPDES permit, which expires in 2000, as well as funding to complete the Geographical Information
System base map and utility layer adjustment. A discussion ensued regarding the effect of the
proposed new positions and the possibility of privatizing or contracting out some of the work.
Mr. Ed Garafia, Water Superintendent, provided an overview of the department, which
consists of three divisions --supply, production, and distribution --as well as laboratory services and
administration. He said the Water Department expenditures are proposed to be $50.489,234. He said
the following top 10 expenditure items comprise 86% of the department's budget: transfers to other
funds; bond interest; salaries; professional services; capital outlay; electricity; bond principal; utility
business office; chemicals; and administrative services. Mr. Garana also answered Council members'
questions.
Mr. Wayne Cockroft, Wastewater Superintendent, noted that the department continuously
operates and maintains six wastewater treatment plants, 94 lift stations, and 1,250 miles of
wastewater collection lines, and it was recognized by the wastewater industry for outstanding
achievements. He described special programs and projects that are being planned: clean-out
installation program; preparation of a request for proposals for privatization of the Allison Plant;
manhole adjustment program; revision of the platting ordinance; and adjustment of the GIS map.
Mr. Cockroft said seven additional full-time positions are being proposed in the FY 98-99
budget, which he described. The total proposed expenditures of $26,538,469 consist of the
following: non -departmental expenses (32%); treatment plants (31%); collection system (18%);
major maintenance and lift stations (8%); administration (5%); capital outlay (5%); and reserve
appropriation (1%). Mr. Hennings and Mr. Cockroft responded to the Council, including questions
about the privatization of the Allison Plant, the nature of the combined utility system, and the
wastewater system's needs.
Ms. Debbie Marroquin, Gas Superintendent, reviewed that department's activities, noting
that there are 1,213 miles of distribution gas mains (steel and plastic pipe) and 57,560 active
customers (residential and commercial). She also described the proposal to add the following eight
positions: utility line locator, gas appliance serviceperson, Clean Cities coordinator, management
assistant III, computer technical specialist, marketing superintendent, marketing specialist II, and
gas system mechanic. In response to questions, Ms. Marroquin said the Gas Department does not
have any capital improvement projects, although $10,000 in pipe will be installed in older
neighborhoods. She added that the percentage of gas leaks is very low (about .01%). A discussion
ensued regarding residential rebates and the need to build the customer base.
Mr. Carl Crull, Assistant City Manager for Public Works and Utilities, noted that the city's
natural gas supply contract terminates July 1, 1999, and staff will begin working on the bid package
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June 30, 1998
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and the request for proposals. He said staff will be reviewing several aspects of the contract, which
he explained. In addition, staff will review options for the use of the Public Law Trust Fund, and
they will continue to pursue completion of the issuance of the Garwood interbasin transfer permit
and determine whether they should proceed with the design and right-of-way acquisition for the
Garwood pipeline.
In response to Council Member Martin, Mr. Hennings and Mr. Crull said that in the proposed
budget staff recommends the transfer of $4.1 million from the Public Law Trust Fund to the Water
Fund to meet the fiscal year debt service requirements on the Lake Texana pipeline bonds. Mr.
Martin said he would rather use the funds from the Public Law Trust Fund to prepay the debt,
thereby reducing the amount of the debt, which would have almost the same effect as the staff
proposal.
Mayor Neal called for a brief recess.
As the Council reconvened, Dr. McNichols referred to the Public Law Trust Fund issue. He
said the goal has clearly been to wait until the Lake Texana pipeline is completed and operational
and then pass through the costs of it to the water customers. In addition, the trust fund monies were
intended for the acquisition of new water supplies.
Ms. Bonnie Allin, Aviation Director, said the proposed budget contains an increase in the
hourly parking lot rate from 75¢ for the first half-hour to $1.00 for the first half-hour and then
dropping back to 75¢ for each half-hour thereafter, with a $10 maximum charge for a 24-hour period.
However, the Airport Advisory Board recommended that the Council consider maintaining the
increase to $1.00 for each half-hour with a $10 maximum. In the daily long-term lot, the rate of 75¢
per hour is proposed to remain, with the maximum 24-hour rate increasing from $5.00 to $7.00. She
said the rate increases, which are expected to bring in about $180,000 to $190,000 more per year,
are necessary to help fund the parking lot improvement projects over the next few years, which she
explained. Ms. Allin said staff plans to strengthen the airport's marketing efforts, as well as to bring
the financial plan and feasibility study on the terminal projects to the Council in late July. Ms. Allin
then replied to questions and comments from the Council.
Mr. Dan Whitworth, Acting Director of the Park and Recreation Department, discussed the
Golf Fund budget, which has a closing fund balance of $601,037; of that amount, $248,000 was
raised through a surcharge to help fund part of the cost of a third golf course. In addition, staff will
be recommending Council approval for a lease purchase agreement for a golf management system
in the current fiscal year, and in FY 98-99 the single largest item will be the replacement of the golf
cart fleet at both courses.
He said the Greens Committee made a recommendation, which was approved by the Park
and Recreation Advisory Board, to implement a new fee for an annual card at a rate of $510 with
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Regular Council Meeting
June 30, 1998
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a $2.50 surcharge per round, which will be available on weekdays and after 12:30 p.m. on weekends
and holidays. Those committees also recommended limiting the use of the discount card (which
allows 12 rounds of golf for the price of 10) to residents only.
With regard to the Marina Fund, Mr. Whitworth said items that will impact the budget next
year include the new L -Head bait stand, replacement of pilings on the Lawrence Street T -Head and
the Cooper's Alley L -Head, as well as architectural fees for the new marina office building. Mr.
Mike Gordon, Assistant Director of Operations, further explained the status of the bait stand project
as well as the concrete area on the People's Street T -Head. Several Council members also
commented on the need to improve the cleanliness of Magee Beach. Mr. Hennings said staff will
bring a proposal to the Council at the next meeting to clean the beach.
Mr. Hennings said the next issue was the Hotel Occupancy Tax Fund, formerly the Tourist
and Convention Development Fund. He said the purpose of the change is to more accurately track
the use of the hotel occupancy tax monies. To do that, the revenues and expenditures for the
Convention Center, Coliseum, and Auditorium are proposed to be moved to the General Fund.
Mr. Hennings also referred to a list of various agencies that have received funds from the city
in the past, as well as the amounts that are recommended by staff in the FY 98-99 budget:
Downtown Management District - $100,000; Greater Corpus Christi Business Alliance (economic
development) - $275,000; Business Alliance (tourism/conventions/hotel industry) - $2,029,999;
Nueces County MHMR Community Center - $60,000; Volunteer Center- $9,500; Harbor Playhouse -
$31,500; South Texas Institute for the Arts - $200,000; Hispanic Arts Center - $15,000; Asian
Cultures Museum - $15,000; Corpus Christi Symphony - $12,000; and Arts Community - $15,000.
A discussion ensued regarding the proposed changes in the Hotel Occupancy Tax Fund. Mr.
Martin said he thought staff should draft a letter to the auditors regarding the basis for their decision.
He also requested a line item comparison of the current year Tourist and Convention Development
Fund and the proposed Hotel Occupancy Tax Fund. Mr. Martin added that he thought staff needed
to establish an enterprise fund for the Convention Center and the Coliseum, even if staff has to show
a General Fund transfer into it to subsidize it.
Mr. Martin also referred to the Downtown Management District and MHMR, saying that he
has always supported the organizations which receive money from the city, but he would not support
providing grants to organizations in order for them to build up their fund balances; he added that he
wanted to review both those organizations' balance sheets. Mr. Martin pointed out that with regard
to the South Texas Institute for the Arts, that facility is owned by the city. He also asked whether the
Corpus Christi Symphony was required to provide public service presentations, such as in the
schools; Mr. Hennings said they were.
Council Member Gonzales said he agreed with the idea of establishing a separate Convention
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June 30, 1998
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Center and Coliseum Fund. Council Member Colmenero also commented on the MHMR funding,
and he asked if the situation regarding the DMD's missing funds could be addressed in a closed
session. City Attorney Bray said he would have to review that issue.
In response to Council Member John Longoria, Mr. Hennings explained that the Downtown
Management District uses the money it receives from the city to pay administrative costs so that it
can use the taxes raised from the businesses in the district for specific projects.
Mr. Martin commented on the Convention Center budget, saying that the Council should
adopt a policy whereby the Convention Center is expected to pay a certain portion of its fund, and
the rest should be supplemented from another source. Mr. Hennings noted that the Convention
Center produces economic activity that would not otherwise be produced, including hotel business
(which translates into hotel occupancy taxes) and a variety of retail activity (which translates into
sales taxes). He said in terms of the city budget, those financial returns are not readily visible.
Mr. Hennings then referred to the portion of his budget message concerning cost reduction
proposals, which he described: a job sharing program, option for city employees to change from Plan
II to Plan I; privatization; and establishment of a volunteer program. The City Manager also pointed
out that the completion of the disparity study is not funded in the FY 98-99 proposed operating
budget, and suggestions have been made to use Community Development Block Grant monies or
surplus corporation funds to pay the balance. Also, the city has been asked by the Corpus Christi Bay
National Estuary Program to provide $75,000 beginning next fiscal year to help that program
continue, which is in the proposed budget.
Ms. Cynthia Garcia, Director of Human Resources, described a proposal pertaining to the
city's Compensation and Classification Plan. She said many factors have come into play since the
plan was implemented in the mid-1950s, including the evolution of different jobs and the
development of computers and other technologies. She said staff is requesting $250,000 in the
proposed budget so that a study of the compensation plan can be conducted.
Ms. Garcia explained that the compensation plan is the infrastructure the city uses to pay and
recognize employees for their job performance. She pointed out that there are no records of the basis
for the creation of the plan, adding that there are over 600 positions in the classified plan and about
134 positions in the managerial plan. She said the Human Resources Department conducts about 50
studies per year to determine whether or not a position should be reclassified or a new position
created.
Mayor Neal said he found it hard to believe that cities around the state have not insisted that
the Texas Municipal League develop a compensation model that can be used. Ms. Garcia replied that
she thought that question had been raised, and they were told by TML that that is a function of each
city because the factors vary. She said as part of the study of the compensation plan, the consultant
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would begin by talking with the City Council to determine what they feel are important factors in
paying city employees. Then the consultant would identify benchmark positions and, based on that,
decide where every position in the city should go. They will also review all the job descriptions and
determine whether a position should be exempt or non-exempt, and review the city's employee
evaluation procedures.
Mr. Hennings said he feels the biggest problem is that the plan was based on a compensation
system that was abandoned about 10 years ago when the system was changed to the merit pay plan.
He said conducting a study of the compensation plan is not uncommon; in fact, Nueces County
conducted such a study a few years ago. He said one of the most difficult things to do would be to
allocate the money for the study.
Mr. Hennings and Ms. Garcia then responded to Council members' questions regarding the
proposed study. Mr. Martin said the study would recommend increases in employees' salaries that
the city does not have the capability to pay for. In addition, he said the city is in the process of a
massive computer conversion, and it would not make sense to conduct such a study at this time.
In conclusion, Mr. Hennings said staff will continue to respond to several budget -related
questions raised by the Council previously and during the day's meeting. He reiterated that the
public hearing on the budget will be held on July 14`n
Mayor Neal said that at this point in the budget discussions, unless the Council receives
much clarification in the next few weeks, he would have a difficult time voting to approve this
proposed budget. He said he understands that there is a dire need to increase city services, but he said
there has not been an attempt to reduce the cost of government.
Responding to Mr. Martin, Mr. Bray read from the City Charter [Article IV, Section 2(e)]
regarding adoption of the budget. Mr. Martin said there are some dramatic changes being made and
significant policy directions being issued, as well as much more information to sort through. He
asked if the recommendations in the budget were being driven by the budget policy, and Mr.
Hennings said that to some extent they are, which he explained.
A discussion ensued, and Dr. Gonzales emphasized that it is important to follow the
established deadline for adopting the budget. He and Mrs. Longoria commented on the need for the
city to provide certain services. Mr. Longoria said one of the goals is to approve a budget that
provides a strong level of services without a tax increase.
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Mayor Neal called for the City Manager's report. Mr. Hennings announced the changes in
the garbage collection schedule due to the Fourth of July holiday. He said there would not be a
Minutes
Regular Council Meeting
June 30, 1998
Page 14
Council meeting on July 7`h, and he said he would work with the Regional Water Supply Task Force
in developing recommendations on the water situation. He also referred to the Legislative Weekend
on July 10-12, and to two written reports that were distributed to the Council regarding utility and
street construction work on Santa Fe Street and traffic accidents on Laguna Shores Road.
Mayor Neal noted that while people in Corpus Christi are concerned about the water
situation, the residents of San Antonio are having serious water resource problems. He said officials
in Corpus Christi were farsighted in establishing additional water resources, such as the Lake Texana
pipeline. He added that there will be an increased effort to control and eliminate the use of fireworks
within the city limits during the Fourth of July holiday.
The Mayor also announced that a public hearing will be held on the issue of the 512 area
code, and he reported that during a recent TML board meeting he attended, there was discussion
about upcoming legislative issues that need to be addressed. He said the Corpus Christi City Council
will discuss those issues in more depth as the 1999 Texas Legislative session draws nearer, including
franchise agreements, electric deregulation, municipal zoning authority, and annexation.
Dr. Gonzales reiterated that due to dry conditions, fireworks can be extremely dangerous, and
he thanked the Police and Fire departments for their efforts in that regard.
There being no further business to come before the Council, Mayor Neal declared the
Council meeting adjourned at 7:40 p.m. on June 30, 1998.
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