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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 Minutes 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 Minutes 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. Minutes 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 Minutes Regular Council Meeting June 30, 1998 Page 5 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 Minutes 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. Minutes 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 Minutes Regular Council Meeting June 30, 1998 Page 8 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 Minutes Regular Council Meeting June 30, 1998 Page 9 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 Minutes Regular Council Meeting June 30, 1998 Page 10 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 Minutes Regular Council Meeting June 30, 1998 Page 11 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 Minutes Regular Council Meeting June 30, 1998 Page 12 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 Minutes Regular Council Meeting June 30, 1998 Page 13 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. ************* 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. * * * * * * * * * * * * *