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HomeMy WebLinkAboutMinutes City Council - 01/25/2000I 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 January 25, 2000, which were approved by the City Council on February 8, 2000. WITNESSETH MY HAND AND SEAL, this 8th day of February, 2000. ' ' Armando Chapa City Secretary SEAL PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Mark Scott Council Members: Javier D. Colmenero Melody Cooper Henry Garrett Dr. Arnold Gonzales Rex A. Kinnison Betty Jean Longoria John Longoria* MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting January 25, 2000 12:06 p.m. City Staff: City Manager David R. Garcia Deputy City Manager George Noe City Attorney James R. Bray Jr. City Secretary Armando Chapa Recording Secretary Rachelle P. Ramon Mayor Neal called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Pastor Albert Schubert, Lord of Life Lutheran Church, following which the Pledge of Allegiance to the United States flag was led by Council Member Kinnison 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 Neal called for approval of the minutes of the regular Council meeting of January 18, 2000. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * * * * Mayor Neal announced five items for the executive session, pursuant to Texas Government Code Section 551.071, regarding the following: F.1. Public Utility Commission of Texas Docket No. 21934, application of Central Power and Light Company for fuel surcharge and increase in fuel factor, and regarding Public Utility Commission projects and dockets implementing Senate Bill 7, 1999 Legislature, comprehensive electric utility deregulation; F.2. City of San Benito et al v. PG&E Gas Transmission, Texas Corporation et al, No. 96-12- 7404-A, 107`" District Court, Cameron County, Texas, with possible discussion and action related thereto in open session; F.3. Maurice Tullos v. City of Corpus Christi, No. C-99-096, United States District Court, Southern District of Texas, Corpus Christi Division, with possible discussion and action in open session; F.4. June Shultz v. City of Corpus Christi, No. C-99-096, United States District Court, Southern District of Texas, Corpus Christi Division with possible discussion and action in open session; F.S. Five Citizens of Corpus Christi, Petitioners vs. City of Corpus Christi, City Manager, Minutes Regular Council Meeting January 25, 2000 Page 2 and Chief Disbursing Officer, Respondents, No. 00-275-G, 319th District Court, Nueces County, Texas, with possible discussion and action related thereto in open session. The Council went into executive session. *Council Member John Longoria arrived at 12:55 p.m. The Council returned from executive session. Following the reading of two proclamations, Mayor Neal made the following motion, which was seconded by Council Member Colmenero: F.2. M2000-019 Motion to reject the settlement proposal received January 24, 2000, from Pacific Gas and Electric in City of San Benito et al v. PG&E Gas Transmission, Texas Corporation et al, No. 96-12-7404-A, 107`h District Court, Cameron County, Texas. The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. * * * * * * * * * * * * * Mayor Neal called for petitions from the audience. Ms. Jenny DelaRosa, 421 Angelo, said she is the second vice president of the LULAC Youth Council 2000. She invited the City Council to attend a "Youth Against Violence" march on February 15, 2000 at 6 p.m. beginning at the Bayfront Plaza Convention Center to the Peoples Street T -Head. Mr. Abel Alonzo, 1701 Thames, commended the City Manager for his desire to work with the Port Authority and other entities to improve the natural resources along the waterfront. He said if Corpus Christi does not continue to grow, its tax base will be diminished and it will become more difficult to provide necessary services. He encouraged the Council to make diverse appointments to the boards of the Chamber of Commerce, Convention and Visitors Bureau, and Economic Development Corporation. Mr. Jack Gordy, 310 Norton St., said the budget shortfalls must have been known prior to the adoption of the recent annexation program. He said the Council should think before it votes on issues. Council Member Scott asked if Mr. Gordy had any evidence to support his statement, adding that he was not aware of the budget shortfalls until a few days ago. Mr. Gordy replied that there has been a problem since November when the Council did not receive the financial reports that were due. Mr. Jose Marroquin, 2433 Allencrest, discussed specific figures in the fuel charge and conservation fee charged by Central Power and Light Company. He said CPL should not charge a rate increase. Minutes Regular Council Meeting January 25, 2000 Page 3 * * * * * * * * * * * * * Mayor Neal referred to the presentation on the day's agenda, an overview of the FY99-00 budget and a five-year forecast. City Manager Garcia said this presentation was the kick-off of this year's budget process. He noted that last year staff completely restructured the budget process, including combining the capital budget presentation with the presentations for the General Fund and enterprise funds. He said part of staffs objective was to create a historical picture of where the city has been financially and where they can anticipate going over the next five years. Mr. Garcia added that they began discussing the budget with the city's department heads during a retreat last weekend and with the police and firefighters unions on Sunday. Deputy City Manager Noe gave a computer presentation on several aspects of the budget. The first elements discussed were the major revenues: property tax, sales tax, franchise fees, and solid waste fees. He said those combined revenues represent about 79% of the General Fund's revenues, which rose from $102.98 million in FY94-95 to $120.9 million in FY98-99. He explained that numbers for FY98-99 represent staff's latest estimates because they have not been finalized or audited. He said they expect to have audited numbers in the next few weeks and they do not expect them to change significantly. Mr. Noe said that ad valorem tax revenues, which make up about 25.5% of the General Fund revenues, have grown from $26 million in FY94-95 to $30.9 million in FY98-99; in addition, net taxable assessed values have increased from $6.2 billion to $7.2 billion during that time. He also further discussed tax rates for all the taxing entities. The second major revenue source is sales tax revenues, which represents about 24.44% of General Fund revenues. Those revenues experienced modest growth over five years, from $25.4 million in FY94-95 to $29.6 million in FY98-99. Mr. Noe said franchise fees represent about 11.8% of General Fund revenues and they mainly consist of fees paid by CPL, Southwestern Bell, and AT&T Cable (formerly TCI Cablevision). Mr. Noe said that solid waste revenues, which consists of residential rates and fees paid by commercial haulers, represents 16.9% of General Fund revenues. The Deputy City Manager then discussed expenditures, which have grown over the last five years from $105.01 million to $125 million. He noted that fiscal year 1998-99 includes debt service and lease payment expenditures which were not previously recorded in the General Fund. The break down of expenditures is as follows: public safety -51%; solid waste -12%; general government -10%; park and recreation and street services -8% each; development services, non -departmental, and health services -3% each; and library -2%. He explained that public safety expenditures have increased from $50.5 million in FY94-95 to $63 million in FY98-99. Mr. Noe also described generally gradual increases that occurred in the major expenditure areas. Mr. Noe then discussed the fund balances, which have varied as follows: $2.5 million in FY94-95; $1.4 million in FY95-96; $2.9 million in FY96-97; $6.5 million in FY97-98; and $3.4 million in FY98-99. Mr. Garcia said the $6.5 million amount was accompanied by a substantial reduction in the debt service fund reserve. Mr. Noe said that during those corresponding years, the Minutes Regular Council Meeting January 25, 2000 Page 4 fund balance as a percentage of expenditures was as follows: 2.39% in FY94-95; 1.28%; 2.60%; 5.76%; and 2.77% in FY98-99. He explained that the rating agencies are less concemed with the absolute dollar amount of the city's fund balance as they are with how that amount converts to a percentage of the city's total expenditures. He also reviewed a comparison of revenues to expenditures. With regard to FY98-99 budget results, Mr. Noe said that staff estimated that the revenues would be $121.29 million, while the actual revenues at this point are estimated to be $120.9 million. The expenditures were budgeted to be $123.9 million while the actual expenditures are estimated to be $125 million. As a result, the estimated fund balance was $4.91 million, while the actual balance is $3.46 million. Mr. Garcia said staff continues to revise their revenue estimates and they are assessing their budgeted expenditures. He noted that there were several unanticipated expenditures during the year, the major one being the need to contract out brush pick up services. The City Manager said that even though the amount of the ending balance has been reduced, the city still has a positive balance. He added that the budget adjustment staff is recommending now is substantially less than the budget adjustment made last year at this time. Mr. Noe then discussed the impact on the current year budget. He said staff has taken the following actions: updated the beginning balance; reduced the projected sales tax and ad valorem tax revenues; and increased administrative cost recovery fee revenues to reflect the final cost recovery plan. He said items that are not included in the budget update are expenditures related to Hurricane Brett, brush collection efforts, and unexpected landfill requirements. He said cost reduction and containment efforts have been implemented by Solid Waste Services to offset increased budget requirements. As a result of the changes discussed, the updated financial statement for FY99-00 is as follows: the beginning balance was changed from $4.91 million in the adopted budget to $3.46 million in the updated budget; revenues were increased from $125.78 million to $126.2 million; expenditures were decreased from $124.49 million to $124.09 million; and the closing balance was reduced from $6.2 million to $5.57 million, or a variance of $627,377. In preparing the five-year budget forecast, Mr. Noe said staff made the following revenue assumptions: property tax, 2.55% growth; industrial district, 2% growth; sales tax, 3% growth; CPL, 2% growth; solid waste, 1% for collections and 2% at the landfill; building permits, 1% growth; Municipal Court, 2% growth; full allocation of indirect costs; and no fee increases or tax rate increases. Mr. Noe said that the impact of the annexation program the Council adopted in December 1999 has been built into all of the scenarios (both revenues and expenditures). Mr. Noe then reviewed the expenditure assumptions made by staff for the five-year budget forecast: maintain the current level of budgeted civilian and sworn personnel; maintain the police and fire training academies; maintain commitments regarding debt service, including those associated with bonds issued for the completion of the 1986 bond program; fund debt service on bonds for the new landfill; reserve monies for repayment of the State Infrastructure Bank loan; fund Minutes Regular Council Meeting January 25, 2000 Page 5 current approved lease payments; replace 35 marked police units and one pumper truck on a cash basis; and fund required 911 expenditures. The assumptions also include budgeting for annual increases in several areas: 5% -health insurance; 4% -liability and compensation insurance; 4% -fuel costs; 2%- electrical costs; 5% -street materials; and 1% to 3% -supplies and other items. The Deputy City Manager discussed three different scenarios and their resulting impact on the budget. Scenario "A" calls for a continuation of current policies, with ad valorem revenues based on maintaining 63% coverage in the G.O. Debt Service Fund and a 3% annual salary increase for civilian and sworn personnel. Mr. Noe and Mr. Garcia then responded to Council members' questions. Mr. Garcia pointed out that the scenarios prepared by staff were mathematical examples of the effect of different variables, which are negatively compounded year after year; however, staff would not present to the Council a budget that is not balanced. He said the message provided by the scenarios is that they need to be very diligent and conservative in approaching this year's budget. Mr. Noe said that Scenario "B" illustrates a change in the debt policy in that the ad valorem revenues are based on maintaining 50% coverage in the G.O. Debt Service Fund; it also includes a 3% annual salary increase for civilian and sworn personnel. Scenario "C" also contains the assumption of 50% coverage for debt service, but it contemplates maintaining current annual salary levels for civilian and sworn personnel over the five-year period with no increases. Mr. Noe said the budget forecast can be summarized as follows: the financial outlook presents a very difficult situation for all city operations; the current economic activity supports steady revenue flows with little or no new growth; and since city departments are already operating with restricted budgets, the outlook will require difficult operating and service decisions for the immediate budget as well as for the long-term budget. Mr. Noe outlined actions that need to be taken to address the budget issues Immediate actions include communicating the situation and completing the financial information, including the General Fund close-out, Comprehensive Annual Financial Report (CAFR), and current -year revenue and expenditure data Actions for the current year include implementing a select hiring freeze for non-uniform positions; instituting procedures for examining major expenditures before they are made; and ensuring that all supervisors and managers understand that they should all be accountable for the financial performance of the city. Responding to Mr. Colmenero, Mr. Noe said their first priority would be to make up the estimated $650,000 shortfall in the current year. Mr. Garcia pointed out that if they froze all of the 125 current vacancies, that would produce over $2 million in savings. However, since that is not advisable, they can implement a selective hiring freeze. He emphasized that it is well within their ability to manage the deficit. Mr. Noe said the overall budget strategy for FY2000-01 includes balancing current year revenues and expenditures; recognizing long-term impacts, including that much of this can only be accomplished through a multi-year plan; building the city's financial strength; prioritizing basic Minutes Regular Council Meeting January 25, 2000 Page 6 services; and realizing that this effort will take team work. Mr. Noe said the budget schedule this year includes reviewing the reduction -in -force policy from January through March; providing a presentation in April of the city's financial policies; and presenting the City Manager's recommended budget in mid-May. Mr. Garcia added that he believes they can begin a budget process that takes the city into the next cycle on very solid financial footing. Mr. Scott said he thinks Corpus Christi needs to continue to focus on bringing more companies and more jobs here. Mr. Noe then responded to Mr. Scott's questions regarding the differences in the budget scenarios. In reply to Mr. Garrett, Mr. Garcia said that if the Crime Control and Prevention District is not renewed by the voters, all of the burden of the additional 50 police officers would be passed on to the General Fund. He said there is also a series of policy issues relating to the expenses relating to the Crime Control District. Mr. Kinnison expressed concern that in January 2000 the Council still does not have the budget figures for the fiscal year ending July 31, 1999, which he said leads to questions regarding numbers in the current year budget. He also said that when the City Manager made a series of budget corrections last year, what he told the Council at that time ended up not being correct. Mr. Kinnison also questioned how staff can be held accountable for the city's budgetary situation when they do not have the capability of accessing current numbers. He said the Council should receive quarterly financial information. Mr. Noe discussed problems that occurred with the PeopleSoft financial system and he said it is staffs goal to have the necessary financial data in place by mid-March. Responding to Dr. Gonzales, Mr. Noe said the city's books should be closed in the next week or so, and audited numbers should be available in mid- to late -February. Dr. Gonzales questioned how the Council can plan for the future when they do not really know how the city fared the past year. He said he hopes staff can do a better job next year on the budget preparation process. Mr. Colmenero asked about the problems associated with the financial data entry. Ms. Mary Sullivan, Director of Finance, said the PeopleSoft system was implemented in March 1999 and since then staff has learned much about running the system, including that there are certain processes that have to be run in a certain order. As a result, there have been many transactions that have not posted properly to the ledger and staff is having to go back and correct the errors. She said her staff has been working many long hours on this project. Mr. Colmenero said the Council should be informed about the impact on services that will result from a selective hiring freeze and a possible reduction in force. Mr. Noe said the whole idea is to achieve savings while minimizing the impact on services. However, he added, in an organization like the city --where 75% to 80% of the cost is attributable to "people costs" --significant savings cannot be achieved without addressing those costs. Mr. Garcia added that 51% of the General Fund's expenses are in public safety (police, fire, and EMS), which are covered by collective bargaining agreements. Minutes Regular Council Meeting January 25, 2000 Page 7 Responding to Mr. Scott, Mr. Garcia described specific expenditures that were miscalculated in the Police Department. Mr. Noe added that staff recognizes that the city has limited resources that have to be built into the budget and they are making an effort to be more conservative with regard to both revenues and expenditures. Mr. Garcia added that the city's financial statements continue to be in balance and that without making any adjustments, the city will have a closing balance of $5.57 million. In addition, in their presentation staff has outlined a plan that will ensure that they at least make the closing balance that staff promised in the adopted budget --$6.2 million --and it will likely go over that amount. In reply to Mr. Kinnison, Mr. Joe Montez, Budget Director, said that for the last five years, the Budget Office has been preparing internal five-year forecasts, which indicated that eventually the city would get to this point. Mr. Kinnison said they let themselves get into this situation where people are finding out this information today and they should not have. He said it is time to move forward whereby the Council is continuing to examine the budget and realize the long-term impact that their decisions have. Dr. Gonzales asked if the Council would begin receiving quarterly reports. Mayor Neal said that is what the Council asked for before they purchased the financial software package. He added that people in business and industry can attest to the difficulty in implementing a new software package. He then called for a brief recess. * * * * * * * * * * * * * Mayor Neal called for consideration of the consent agenda (Items 2-12). City Secretary Chapa said Item 13 was postponed. Council members requested that Items 6, 8, and 12 be withheld for discussion. There were no comments from the audience. Mr. Chapa polled the Council for their votes and the following were passed: 2. M2000-020 Motion approving a supply agreement with Starcrete Products, Robstown, Texas, for approximately 1,100 bags of Portland Type I Cement, 1,600 bags of Mortar Mix, and 3,500 bags of Concrete Mix in accordance with Bid Invitation No. BI -0050-00 based on low bid for an estimated annual expenditure of $17,755. The term of the supply agreement 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. These items will be purchased for Warehouse Inventory and charged out to various using departments throughout the City. Funds have been budgeted in the FY99-00. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, and Scott voting "Aye"; J. Longoria absent. Minutes Regular Council Meeting January 25, 2000 Page 8 3. M2000-021 Motion approving a supply agreement with Borden Milk Products L.L.C., Austin, Texas in accordance with Coastal Bend Council of Governments Bid Invitation No. CBCOG-00-2, for 118,537 half-pint containers of milk consisting of homogenized milk, buttermilk, low fat milk, low fat chocolate milk and skim milk, based on the recommended award submitted by the Coastal Bend Council of Governments for an estimated six month expenditure of $20,903.17. The term of the agreement shall be for six months with an option to extend for up to three additional months, subject to the approval of the Coastal Bend Council of Governments, the supplier and the City Manager or his designee. Funds have been budgeted by Senior Community Services in FY99-00. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, and Scott voting "Aye"; J. Longoria absent. 4.a. ORDINANCE NO. 023923 Ordinance appropriating $349,943.50 from the Reserve for Capital Outlay in the No. 5110 Maintenance Service Fund to purchase slope mowers; amending the FY99-00 Budget, adopted by Ordinance No. 023702, by increasing appropriations by $349,943.50 in the No. 5110 Maintenance Service Fund. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, and Scott voting "Aye"; J. Longoria absent. 4.b. M2000-022 Motion approving the purchase of five slope mowers from H & V Equipment Services, Inc., Corpus Christi, Texas for $349,943.50 based on sole source. The mowers will be used by the Stoma Water Department. Two units are replacements and three are additions to the fleet. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, and Scott voting "Aye"; J. Longoria absent. 5. M2000-023 Motion approving a maintenance agreement with Medtronic Physio -Control Corporation, Redmond, Washington, based on sole source, for testing and calibrating automatic external defibrillators for the Fire Department -EMS. The term of the agreement is twelve months; the amount is $20,234.40. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Minutes Regular Council Meeting January 25, 2000 Page 9 Gonzales, Kinnison, B. Longoria, and Scott voting "Aye"; J. Longoria absent. 7. M2000-025 Motion authorizing the acquisition of Parcel No. 16B, located east of FM763 (Joe Mireur Road) between Old Brownsville Road and Bear Lane, for $211,338 in connection with the Corpus Christi International Airport Land Acquisition project. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, and Scott voting "Aye"; J. Longoria absent. 9. M2000-027 Motion authorizing the City Manager or his designee to execute Amendment No. 1 to the architectural/engineering services contract with M. Arthur Gensler, Jr. and Associates, Inc. in the amount of $72,095 related to the airport automated access control system (AACS) and closed-circuit television (CCTV) system for the Terminal Reconstruction project at Corpus Christi International Airport. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, and Scott voting "Aye"; J. Longoria absent. 10.a. M2000-028 Motion accepting a grant in the amount of $100,000 from the Department of Justice Office of Justice Programs, State and Local Domestic Preparedness for the Municipal Agency Domestic Preparedness Equipment Support Programs to purchase specialized response equipment. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, and Scott voting "Aye"; J. Longoria absent. 10.b. ORDINANCE NO. 023924 Ordinance increasing revenues and appropriating $100,000 from the U.S. Department of Justice, Office of Justice Programs, State and Local, Domestic Preparedness, in the No. 1050 Federal/State Grants Fund for the Municipal Agency Domestic Preparedness Equipment Support Program. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, and Scott voting "Aye"; J. Longoria absent. Minutes Regular Council Meeting January 25, 2000 Page 10 11.a. M2000-029 Motion authorizing the City Manager to execute Attachment No. 6 to Contract No. 74600005741-2000 with the Texas Department of Health in the amount of $82,840 to provide immunization services. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, and Scott voting "Aye"; J. Longoria absent. 11.b. ORDINANCE NO. 023925 Ordinance appropriating a grant from the Texas Department of Health in the amount of $82,840 in the No. 1050 Federal/State Grants Fund to fund immunization services. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, and Scott voting "Aye"; J. Longoria absent. 13. WITHDRAWN Ordinance amending the Corpus Christi Codc of Ordinanccs, Chaptcr 24, Sections 24 33, 24 37, 24 40, 24 46, 24 47, 24 48, 24 49, 24 50, 24 51, 24 52, 24 53, 24 54, 24 55, 24 56, 24 58, 24 62, 24 64, 24 65, 24 66 of IIuman Relations, Articic III, Discrimination in lIou.:ng and pruvidi1i fettei.altics. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 6, storm surge protection gates. Responding to Council Member Colmenero, Mr. Angel Escobar, Director of Engineering Services, explained that the existing gates will be replaced with a new light -weight gate system which will shorten the time needed to erect the gates. City Secretary Chapa polled the Council for their votes as follows: 6. M2000-024 Motion authorizing the City Manager or his designee to execute a construction contract with J. M. Davidson, Inc. for a total fee not to exceed $320,254 for the Storm Surge Protection Gate Rehabilitation/Replacement Project. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." Minutes Regular Council Meeting January 25, 2000 Page 11 Mayor Neal opened discussion on Item 8, land acquisition by condemnation. The Mayor then made a motion to amend Item 8 to change the condemnation award amount from $70,000 to $75,000. The motion to amend was seconded and it passed. City Secretary Chapa polled the Council for their votes as follows: 8. M2000-026 Motion authorizing the payment of the Special Commissioners' condemnation award of $75,000 for acquisition of Parcel No. 32 located on Ennis Joslin Road between Carson Street and the Alameda/Ennis Joslin intersection in connection with the Spur 3, Phase 2 improvements project. The foregoing motion passed, as amended, by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 12, aerial enclosed pedestrian bridge. Responding to Council Member Gonzales, City Attorney Bray said the city is charging St. James Episcopal School for leasing the space over the street because it is a property right that has value. He added that this action has been taken with other entities, such as banks which have constructed aerial bridges or skywalks. City Manager Garcia added that the leasing of the space is a fairly common practice. He noted that the city cannot make a gift of property to an entity without receiving some compensation. Dr. Gonzales said he could understand charging a bank for that use but this case involves a safety factor. Mr. Bray replied that the market value in each case is charged because they are all private interests --whether they are for-profit or non-profit. Council Member Kinnison asked if the traffic light in that area will be moved. Mr. Escobar said staff will evaluate the need for the traffic signal once the skywalk is in use. In addition, the time that the school zone is in operation will be reviewed. Mr. Kinnison also asked why Item 12.a. is an emergency item. Mr. Bray replied that the Charter has several definitions of what constitutes an emergency and one of those is the efficient administration of city affairs, and it is within the Council's prerogative to do this. Responding to Council Member Betty Jean Longoria, Mr. Escobar said the skywalk will be 14'6". City Secretary Chapa polled the Council for their votes as follows: 12.a. ORDINANCE NO. 023926 Ordinance authorizing the City Manager or his designee to execute a one year lease with St. James Episcopal School to construct an aerial enclosed pedestrian bridge or skywalk across the Carancahua Street right-of-way between the main school building on the east side and Minutes Regular Council Meeting January 25, 2000 Page 12 the annex building on the west side of Carancahua Street in consideration of the payment of $235 in rent. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Colmenero, Cooper, Garrett, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Gonzales voting "No." 12.b. FIRST READING ORDINANCE Authorizing the City Manager or his designee to execute a fifty-nine year lease with St. James Episcopal School to construct an aerial enclosed pedestrian bridge or skywalk across the Carancahua Street right-of-way between the main school building on the east side and the annex building on the west side of Carancahua Street in consideration of the payment of $940 in rent for the first four year term, with the rent for subsequent five year terms being adjusted based upon the consumer price index. The foregoing ordinance passed on first reading by the following vote: Neal, Colmenero, Cooper, Garrett, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Gonzales voting "No." * * * * * * * * * * * * * Mayor Neal referred to Item 14 regarding farmers markets, and a motion was made, seconded and passed to open the public hearing. There were no comments from the audience. Council Member Cooper made a motion to close the public hearing, seconded by Council Member Scott, and passed. Mr. Michael Gunning, Director of Planning and Development, explained that there is a variation between staffs recommendation and the Planning Commission's recommendation. He said staff is recommending the farmers market use as an accessory use to a shopping center and that the use comply with the set -back and parking requirements. The commission is recommending that the farmers market use have no additional parking requirements. He said staff is concerned that the shopping centers will not be able to accommodate their patrons, who will be forced to park on the street rights-of-way and in neighborhoods. Responding to Mayor Neal, Mr. Gunning said that under staff's proposal, if someone requested a permit for a farmers market use, they would have to demonstrate that the shopping center does have excess parking spaces that can be dedicated to the farmers market use. If the center just meets but does not exceed the parking requirements, the fanners market use would not be allowed in that shopping center unless the applicant went to the Zoning Board of Adjustment to get a variance or reduction in the parking requirement. Mr. Tom Utter, Assistant City Manager for Development Services, explained that while the shopping center which houses an existing farmers market has sufficient parking, staff is concerned Minutes Regular Council Meeting January 25, 2000 Page 13 that in the future other shopping centers may decide to include farmers markets but they will not have adequate parking to accommodate them. In response to a question from the Mayor, City Secretary Chapa said the Council could make a motion to concur with either the Planning Commission's recommendation or staff's recommendation. He noted that the agenda caption has the same wording for both recommendations. Mr. Gunning said that in the ordinance proposed by the Planning Commission, the word "parking" is struck from that document but it is included in staff's proposed ordinance. Council Member Betty Jean Longoria made a motion to concur with staff's recommendation, seconded by Council Member Colmenero. Mr. Utter reiterated that the existing farmers market has adequate parking and meets all of the requirements. Mr. Chapa polled the Council for their votes: 14. FIRST READING ORDINANCE Amending the Zoning Ordinance by defining farmers market and farmers market retail sales area and allowing the farmers market retail sales area in the "B-3" Business Districts and "B- 4" General Business Districts; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. The foregoing ordinance passed on first reading by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." ************ Mayor Neal referred to Item 15, a proposed amendment to the Southside Area Development Plan. A motion was made, seconded and passed to open the public hearing. Mr. Gunning said the first proposed ordinance adopts six policies and a future land use map for the Gardendale area that would promote the redevelopment of some of the peripheral streets and protect the residential character of that neighborhood. He explained actions that have taken place in that area in the last 10 years, including the improvement of Williams Drive and the subsequent increase in traffic there. Consequently, the Gardendale Committee was formed, consisting of residents and property owners who met with staff 12 times over two years. Mr. Gunning said the residents indicated that they wanted to have zoning that incorporates more than just professional office uses, so staff proposed the creation of a new zoning district, `B - 1A" Neighborhood Business District, which falls between a "B-1" District and a "B-3" District. He said the Gardendale Committee recommended targeting additional funds for improvements to Gardendale Park and an increase in code enforcement efforts. The Planning Director then further described specific elements of the new `B -1A" District, including height modifications, landscape and driveway requirements, and operating hours. Minutes Regular Council Meeting January 25, 2000 Page 14 Mr. Gunning added that they will ask the Council to direct staff to initiate the rezonings along Williams Drive and Holly Road between Everhart and Staples to the `B -1A" District. He said if there are property owners who are opposed to the rezoning at this time, they will be excluded. Mayor Neal commended staff and the Gardendale Committee for proposing what he hopes will become a model for zoning uses in other areas of the city. Mr. Gunning thanked staff members Bob Payne and Miguel Saldafia for their efforts. There were no comments from the audience. Council Member Garrett made a motion to close the public hearing, seconded by Council Member Colmenero, and passed. Responding to Council Member Kinnison, Mr. Utter said that a few years ago the Council designated Gardendale part of a special developmental area under state law because their needs are different from almost every other neighborhood in the city. Mr. Utter then named the members of the Gardendale Committee: Robert Rudine, Tiburcio Soto, Carroll Norrell, Juan Gallegos, H.G. Garrett, Theresa Gilbert, Kermit Sultemeier, Mateo Morales, W.L. Hermis, and Joe Garcia. City Secretary Chapa said Council Member Gonzales had filed a disclosure affidavit and he would abstain from voting on this item. Mr. Chapa then polled the Council for their votes: 15.a. FIRST READING ORDINANCE Amending the Southside Area Development Plan, an element of the City's Comprehensive Plan; by amending the policy statements to include new statements B.9, B.10, B.11, C.5, D.12 & D.13 relating to recommended land uses, traffic calming devices, park improvements and increased code enforcement; and by amending the future land use map. The foregoing ordinance passed on first reading by the following vote: Neal, Colmenero, Cooper, Garrett, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Gonzales abstaining. 15.b. FIRST READING ORDINANCE Amending the Zoning Ordinance by adding Article 12A, "B-1" Neighborhood Business District; by defining Adult Day Care Facility; by amending Article 24, Height, Area & Bulk requirements by adding a row for the `B -1A" District; by amending Article 27, Supplementary Height, Area and Bulk Requirements by adding `B -1A" to the districts eligible for height modifications in Section 27-2.02; and by amending Article 27B; Landscape Requirements by amending Section 27B-7 Street Yards by adding B -1A to the zones listed in Paragraph B of Section 27B-7.01. The foregoing ordinance passed on first reading by the following vote: Neal, Colmenero, Cooper, Garrett, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Gonzales abstaining. Minutes Regular Council Meeting January 25, 2000 Page 15 * * * * * * * * * * * * * Mayor Neal referred to Item 16, and a motion was made, seconded and passed to open the public hearing on the following zoning case: 16. Case No. 1299-2. Jonny Salomonsen: A change of zoning from an "R -1B" One -family Dwelling District to a "T -1B" Manufactured Home Park District on Flour Bluff and Encinal Farm and Garden Tracts, Section 52, being 8.01 acres out of Lot 17, located on the east side of Waldron Road, approximately 400 feet south of Yorktown Boulevard. City Secretary Chapa said the Planning Commission and staff recommended denial of the requested "T -1B" District, and in lieu thereof, approval of a "T -1C" Manufactured Home Subdivision District. He added that the 20% rule was in effect for this item. Mr. Gunning explained that the applicant owns a 20 -acre lot south of Yorktown on which he wants to locate a manufactured home on an interim basis until he can afford to build a permanent home. The applicant applied for a "T -1B" District but staff, the Planning Commission, and the applicant agreed to a "T -1C" District, which limits him to one unit per lot. He added that there were two large property owners opposed to the "T -1B" District, but he did not know if they were opposed to the recommended "T -1C." No one appeared in opposition to the zoning change. Mr. Colmenero made a motion to close the public hearing, seconded by Mrs. Longoria, and passed. Mr. Chapa polled the Council for their votes as follows: ORDINANCE NO. 023927 Amending the Zoning Ordinance upon application by Jonny Salomonsen, by changing the zoning map in reference to 8.01 acres out of Lot 17, Section 52, Flour Bluff and Encinal Farm and Garden Tracts, from "R -1B" One -family Dwelling District to "T -1C" Manufactured Home Subdivision District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, and Scott voting "Aye"; J. Longoria absent. ************* Mayor Neal referred to Item 17, and a motion was made, seconded and passed to open the public hearing on the following zoning case: 17. Case No. 1299-7 Jack Youngblood dba Natalie's Catering: A change of zoning from an "AT" Apartment Tourist District with a Special Permit to a `B-1" Neighborhood Business District on Seaside Subdivision, Block 5, Lot 1, located on the west side of Ocean Drive, Minutes Regular Council Meeting January 25, 2000 Page 16 approximately 750 feet north of Airline Road. City Secretary Chapa said the Planning Commission and staff recommended denial of the requested `B-1" District, and in lieu thereof, approval of a special permit for a catering business and other commercial uses subject to five conditions. No one appeared in opposition to the zoning change. Ms. Cooper made a motion to close the public hearing, seconded by Mrs. Longoria, and passed. Mr. Chapa polled the Council for their votes as follows: 17. ORDINANCE NO. 023928 Amending the Zoning Ordinance upon application by Jack Youngblood, d.b.a. Natalie's Catering, by granting a Special Permit for a food catering business and other commercial uses subject to five conditions on Lot 1, Block 5, Seaside Subdivision (currently zoned "AT" Apartment Tourist District with a special permit for specified commercial uses); amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, and Scott voting "Aye"; J. Longoria absent. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 18, Central Power and Light (CPL) fuel case. City Attorney Bray said these actions involve a resolution authorizing the city's intervention in the ongoing fuel factor and surcharge case at the Public Utility Commission (PUC) involving CPL. He said it also authorizes the city's intervention in the later reconciliation case where there will be more probing into the bases for the increases. Mr. Geoffrey Gay, the city's utility counsel in Austin, said the case immediately before the PUC (Docket No. 21934) involves CPL's request for an increase in fuel factors equivalent to about $55 million annually and a request to surcharge an additional $36.5 million to recover prior under- recoveries of fuel. He said the statute in the last 20 years has contemplated that fuel costs will be recovered on a basis in which they are incurred through a special adjustment clause so that the company is made whole for its cost of fuel without any payment of margin or return to the company (i.e., no profit) for this expense. Mr. Gay said the PUC also provides that when a company reaches a specific percentage of reasonable expenses for fuel (in this case 4%), they must request either a refund or a surcharge. Last year CPL made a request to refund approximately $19 million and this year they are requesting a surcharge. He said in September they finalized a fuel reconciliation proceeding involving CPL's fuel costs for a three-year period ending in June 1998. As a result, CPL was required to take a Minutes Regular Council Meeting January 25, 2000 Page 17 disallowance of fuel cost of approximately $8 million and they lost their effort to obtain a $19 million to $20 million reward they were seeking for operation of the South Texas Nuclear Project. Mr. Gay said the PUC's rules limit this case to evaluation of the reasonableness of the estimates provided by CPL on both the fuel cost and the load. He said CPL's request is largely attributable to increases in the cost of natural gas, which is not unique to the company. Mr. Gay added that the Corpus Christi City Council takes a more aggressive stand on behalf of its ratepayers than any other city in Texas. He said they are looking forward to the finalization of the merger of Central and South West Corporation and American Electric Power Company, which will lead to rate reductions which go above and beyond the rate reductions mandated by the Texas Legislature. Mr. Gay went on to say that at this time there are about 30 different projects at the PUC to implement Senate Bill 7, which calls for the eventual deregulation of electricity in Texas. Other related matters include CPL's pending securitization case, where they have asked to securitize $1.3 billion in regulatory assets. He said they have taken the most aggressive stand in that case in opposition to CPL's request, and they expect an order from the PUC soon. In addition, the Legislature has mandated that on April 1, 2000, all the investor-owned utilities in the state will make filings to unbundle their cost of service, which he explained. He also discussed the issue of aggregation. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 18.a. RESOLUTION NO. 023929 Resolution authorizing intervention of the City of Corpus Christi in Public Utility Commission of Texas Docket No. 21934, application of Central Power and Light Company for fuel surcharge and increase in fuel factor, and related proceedings. The foregoing resolution passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 18.c. M2000-030 Motion authorizing the City Manager or his designee to employ Geoffrey Gay and the law firm of Lloyd, Gosselink, Blevins, Rochelle, Baldwin & Townsend, P. C. to advise and represent City interests with respect to electric deregulation projects and proceedings at the Public Utility Commission and with respect to telecommunications regulatory and franchise matters at the rate of $200 per hour, subject to appropriation. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." Minutes Regular Council Meeting January 25, 2000 Page 18 * * * * * * * * * * * * * Mayor Neal opened discussion on Item 19, agreement with the Corpus Christi Convention and Visitors Bureau (CVB). Deputy City Manager Noe stated that the CVB Interim Board made a presentation to the Council on December 21, 1999, regarding their recommendations about the CVB's operating policies and the make up of the permanent board. He said that based on the Council's comments during that meeting, some adjustments were made to the proposed agreement to clarify the importance of marketing and addressing the city -owned facilities that rely on the CVB's services exclusively. Mr. Noe also said that the compensation section mirrors the current agreement, adding that long-term compensation issues will be discussed during the upcoming budget process. Mr. Noe explained that the contract proposes the following board structure: three from the lodging industry, two from the restaurant industry, two from area attractions, two from the air/ground transportation industry, and six members from the community at large. All members are appointed by the Council to three-year staggered terms to represent the diverse geographic nature of this area. He said if the Council approves the agreement, the board appointments could be made during the February 8, 2000, Council meeting. Council Member John Longoria said the Council had a lengthy discussion on December 21st about the structure of the board, and he noted that the bylaws were not included with the proposed contract. Mr. Noe replied that according to the people drafting the bylaws, the issues relating to an executive committee and standing committees have been removed from the bylaws. Mr. Longoria also asked about term limits, and City Attorney Bray replied that the CVB Board is not specifically subject to the city's regulations governing boards and commissions, such as the six-year term limit; rather, the CVB Board is a corporate directorship. Mr. Noe said that if the Council wished to impose term limits, they should be spelled out in the agreement itself rather than in the bylaws, which can be amended by the board. Mr. John Bell, the CVB's counsel, added that he drafted a set of bylaws which conform to the requirements of the contract. He also noted that the contract could require that the board have regular monthly meetings. Council Member Kinnison asked if the contract could contain a clause that the Council has to concur with any changes in the bylaws. Mr. Bell replied that they could, although in the past he has recommended against that because many of the changes are "housekeeping" items and do not require the Council's time. Mr. Bell said Mr. Bray had suggested that they provide the Council with a copy of the bylaws and allot for a time period before they become effective. A brief discussion ensued regarding the bylaws. Mr. Longoria also asked about the regulations concerning filling an unexpired term. City Secretary Chapa replied that normally the term limit on boards and commissions is six years, but if a person is filling an unexpired term, he or she can serve more than six years. He said if the Council Minutes Regular Council Meeting January 25, 2000 Page 19 wished to amend the CVB's proposed contract regarding the board members' terms, it should comply with the rules for other city boards. Council Member Garrett, a member of the CVB Interim Board, questioned why he was not informed of a meeting attended by Council Member Betty Jean Longoria, another interim board member, with other board members. Mrs. Longoria said that the interim board did not call another meeting after the Council's December 21st discussion about the CVB, so she took the initiative and contacted Mr. Noe and Mr. Bill Pruet, Interim Board Chairman, to discuss some of those issues. Mayor Neal said if this contract is being brought to the Council without the approval of the interim board, then it needs to go back to the board for their input, including the input of the Council members who sit on the interim board. Mr. Noe replied that the interim board made a recommendation but the Council did not like it, saying they wished to have more at -large slots and more control over the appointments. Mrs. Longoria pointed out that the interim board did not meet again to discuss the Council's concerns. Mayor Neal said they should postpone this item until the February 8th Council meeting. Mr. Longoria said he did not think the contract needed to be changed, with the exception of some issues related to the board's structure. Council Member Scott said he thought the Council should receive quarterly updates from the CVB. He also asked whether the city could lease the land utilized by the Columbus ships to another group if the ships leave Corpus Christi. Mr. Bell replied that there is a separate lease agreement between the city and the Columbus Fleet Association which would have to be adjusted based on whatever occurs regarding the ships' location. Mr. Noe pointed out that the contract does provide for quarterly reporting. Mr. Kinnison noted that the 2 -cent increase in the hotel/motel occupancy tax is not addressed in the contract, and he said he wished to delete the words "from Padre Island, the Northwest area, and the Westside area" on page six of the proposed agreement regarding representation on the permanent board. Mr. Scott noted that the Council recently approved the annexation of a portion of Mustang Island, and they will want to be represented on the CVB board since one of the issues to contend with is how to spend hotel revenues from the island. Responding to Council Member Colmenero, Mr. Noe said the original target date for appointments to the CVB board was February 8th. He said if the Council was comfortable with the general categories contained in the proposed agreement, they can ask the interim board to make recommendations for appointments and open it up to individuals who may wish to submit their names to the City Secretary's Office. Mayor Neal suggested that the appointments be moved back one week to February 15th. Mrs. Longoria asked the Council about the board's term limits, and there was consensus that the terms should conform with the regulations for other city boards and commissions. In response to Council Member Gonzales, Mr. Bray explained the termination clause in the proposed agreement. Mr. Longoria requested a draft copy of the CVB's bylaws, and Mr. Colmenero suggested that they Minutes Regular Council Meeting January 25, 2000 Page 20 be provided in advance of the next meeting. A motion was made, seconded, and passed to postpone Item 19 until the February 8th Council meeting. 19. POSTPONED Motion authorizing the City Manager or his designee—to execute an agreement with the July 31, 2005. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 20, agreement with the Corpus Christi Regional Economic Development Corporation (EDC). Mr. Al Jones, Chairman of the EDC Interim Board, referred to draft copies of the consulting agreement, bylaws, and organizational structure for the proposed EDC, which have been unanimously approved by the interim board. He said the permanent EDC board would consist of 12 members, six of whom would represent private enterprise and six representing the public entities which provide funding to the EDC, namely the City of Corpus Christi, the Port of Corpus Christi Authority, and Nueces County. The city would appoint three members, the Port two members, and the county one member. Mr. Jones said that with regard to the six appointments by private enterprise, the initial appointments would be made by the interim board; after that, those six individuals will be elected by the membership. Mr. Jones explained that the permanent board will operate the EDC on a month-to-month basis; however, their efforts will be supplemented by a larger board of trustees, consisting of 15 to 40 people, that will probably meet on a quarterly basis. He added that the consulting agreement focuses on the EDC's mission, which is to bring in new jobs and expand existing businesses. He said currently the EDC does not have an executive director and Mr. Louis Montoya has been accomplishing those tasks at no charge. Mr. Jones said they are in the process of recruiting a new director. Council Member Betty Jean Longoria questioned why the city only appoints three members to the EDC board in light of the financial contribution made by the city. Mr. Jones said they are striving to have a relatively small board composed of 50% private representatives and 50% public representatives. He added that they hope to receive about $500,000 a year in funding from private interests. He said they also intend to keep the Council and the other entities informed about their activities. Minutes Regular Council Meeting January 25, 2000 Page 21 Council Member Gonzales said he thought the entities which are providing the funds to the EDC should have more input into the organization's operation. He suggested that the city make a total of five to seven appointments, the Port three, and the county two appointments. Council Member Scott said he thought that splitting the appointments in half between public and private interests will encourage participation by private enterprises. Council Member Kinnison, a member of the interim board, said they discussed the make up of the permanent board at length. He said they expect the private companies to participate in the process and, in turn, many private companies expressed concern that they be equally represented on the EDC board. Dr. Gonzales replied that the Council members are elected by private citizens, which he explained. Mayor Neal made a motion to amend Item 20 to change the date to July 31, 2000. The motion was seconded by Mr. Scott and it passed. Dr. Gonzales made a motion that the city appoint five members to the EDC board, the Port three, and the county one. Mr. Garcia asked Dr. Gonzales if he wished those numbers to be fixed or floating to reflect the funding percentages. Instead, Mr. Kinnison made a motion that the Council accept the recommendation of the interim board regarding the make up of the permanent board as follows: 12 members with three appointed by the city, two by the Port, one by the county, and six from the private sector. Mr. Kinnison's motion was seconded by Mr. Scott. City Secretary Chapa polled the Council on Mr. Kinnison's motion, and it passed by the following vote: Neal, Colmenero, Cooper, Garrett, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Gonzales voting "No." Mr. Scott asked if the contract allows the Council to appoint private citizens to the board, and Mr. Bray replied that it does. Mr. Longoria and Mr. Kinnison said the contract is written in such a way as to allow either private citizens or Council members to serve on the board. There were no comments from the audience. Mr. Chapa polled the Council for their votes as follows: 20. M2000-031 Motion authorizing the City Manager or his designee to execute an agreement with the Corpus Christi Regional Economic Development Corporation (EDC) whereby the EDC will promote economic development in the Corpus Christi Bay area for an annual fee of $375,000. The term of the agreement is January 1, 2000 through July 31, 2000. The foregoing motion passed, as amended, by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 21, lease with Lady Lex Museum on the Bay Minutes Regular Council Meeting January 25, 2000 Page 22 Association. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 21. FIRST READING ORDINANCE Authorizing the City Manager or his designee, to execute a five year lease with the Lady Lex Museum on the Bay Association ("Museum") to berth the U.S.S. Lexington for its operation as a museum on a portion of the submerged lands patented to the City in January 1924, being roughly bounded by Breakwater Avenue, Bridgeport Avenue, the Breakwater, and the Bay, and a portion of the adjacent beach, as shown on the attached exhibit A, in consideration of the museum paying $1 per year, in advance. The foregoing ordinance passed on first reading by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, B. Longoria, and J. Longoria voting "Aye"; Kinnison and Scott absent. Mayor Neal called for a brief recess. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 22, responses to disparity study recommendations. City Manager Garcia said this was the second part of a presentation made to the Council on November 9, 1999, regarding the results of the disparity study conducted by the LBJ School of Public Affairs at the University of Texas at Austin. As a result of the first presentation, several specific recommendations were made on ways the city could modify, implement or revise some of its purchasing and contracting processes so as to achieve more diversity. Dr. Helen Gurley, Director of Human Relations, explained that the agreement for the study was entered into on June 1, 1998, and it should have been completed on May 31, 1999. However, on April 15, 1999, the university requested a 90 -day extension at no cost to the city. Dr. Gurley then named the members of the Disparity Study Committee, which she chaired. Jimmy Bray, Jorge Garza, Pat Alba, Mike Barrera, F.D. Glenn (who has retired), JoAnn Dominguez, Cynthia Garcia, and Angel Escobar. Dr. Gurley then described the disparity study recommendations and staff's responses to each one. She also responded to Council members' questions and comments about them. The first set of recommendations dealt with incorporating race- and gender -neutral measures, such as making relevant city personnel accountable for the success of the city's minority and women business enterprises (M/WBEs). She said the Human Relations Department will develop training materials to educate all department users about the selection and recruitment of M/WBEs as vendors and/or contractors. Minutes Regular Council Meeting January 25, 2000 Page 23 In addition, said Dr. Gurley, on a weekly basis the Materials Management Department will begin circulating a summary sheet of formal and informal bid invitations to the Minority Business Opportunity Committee (MBOC), local M/WBEs, and media organizations which request it. She added that the Engineering Department has its own Web page which contains helpful information. The disparity study also recommended that the city consider setting aside some smaller commodities purchases for bidding only by small businesses. Dr. Gurley said staff agrees with that recommendation since the City Attorney is unaware of any legal impediments to "small business" set -asides. However, it will impact the Materials Management Department because it will take between six months to one year to implement such a program. Mayor Neal suggested that staff come back to the Council with specific estimates on the cost of implementing agreed upon elements of the disparity study. Council Member John Longoria discussed the importance of identifying small businesses so they can be notified of bid opportunities. He said the city cannot control whether or not those small businesses respond to the bid invitations, but at least they are aware of them. Dr. Gurley said the study recommended the addition of staff to reach out to M/WBEs and evaluate compliance with affirmative action policies; however, she noted, hiring a compliance officer would cost approximately $36,000 a year for salary and benefits. Mr. Longoria said he was more interested in being proactive and reaching out to M/WBEs than dealing with compliance issues at this time. He added that the Council authorized funding through Community Development Block Grants to pay for three MBOC staff members, one of whom is a temporary worker. Mr. Utter confirmed that MBOC has two permanent employees and one temporary employee. Dr. Gurley also discussed the recommendations concerning bonding and insurance requirements, including that the city consider removing the insurance and bonding costs when calculating the lowest bidder. She explained that the Texas Local Government Code requires that a contract be awarded to the lowest responsible bidder. She added that the City Attorney does not believe the bonding costs could be excluded where insurance and bonding are part of the specifications. Mr. Escobar noted that Engineering Services conducts ongoing seminars about how to do business with the city. Dr. Gurley then reviewed the recommendations regarding payments to subcontractors. Another one of the study recommendations was that the city adopt an anti -discrimination ordinance making it illegal to discriminate on the basis of race, ethnicity, or gender in public and private contracting. Dr. Gurley said staff agrees with that recommendation so long as it does not violate federal or state statutes. She added that the scope of such an ordinance would have to be defined and resources for staff training would have to be available. She said that recommendation requires additional work by the consultants, which may take another 90 days. Council Member Kinnison said he would not support the recommendation because there are federal laws which address that issue. Mr. Escobar said FAA and HUD/CDBG projects already Minutes Regular Council Meeting January 25, 2000 Page 24 contain anti -discrimination requirements. A brief discussion ensued and Dr. Gurley stated that she thought the city should review its contracting programs after about a year and if the city receives a number of complaints from small businesses that the city is not an equal opportunity contractor, then the city can examine that issue further. Mr. Kinnison said he agreed that they should review the situation for a year. Dr. Gurley pointed out that according to the study, the largest contracting disparities occurred in the private sector. The Human Relations Director also discussed the recommendations regarding adopting an owner -controlled insurance policy program and a linked deposit program; utilizing the existing preference for local businesses; and ensuring the accurate use of contract or purchase order identification numbers. Regarding race and gender -conscious measures, Dr. Gurley said the study recommended adopting M/WBE availability estimates as the city's overall annual benchmark for M/WBE participation, and continuing to set M/WBE participation benchmarks for individual construction contracts and subcontracts. She said staff's response is that they need additional time to research those recommendations (an additional 90 days). The Council concurred. The disparity study also recommended that the city call at least three M/WBEs on all purchases not subject to formal competitive bidding requirements. Dr. Gurley explained that the Texas Local Government Code requires that a city contact at least two historically underutilized businesses for expenditures between $3,000 and $15,000. Mr. Barrera, Acting Director of Materials Management, said the city's policy is to require two verbal quotes for expenditures between $1,000 and $2,000, and written quotes for expenditures between $2,000 and $3,000. Mr. Escobar explained the policy for public works projects. Mr. Longoria suggested that some of the study's recommendations be incorporated into the MBOC program. There were no comments from the audience. City Secretary Chapa polled the Council for their votes on the following motion (incorporating the Council's previous comments): 22. M2000-032 Motion approving staff recommendations on Disparity Study findings. The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 23, naming the Sister Cities Parkway. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: Minutes Regular Council Meeting January 25, 2000 Page 25 23. M2000-033 Motion authorizing the naming of the area between the old County Courthouse and the new Federal Courthouse as Sister Cities Parkway. The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Cooper absent. Mayor Neal suggested that in conjunction with Item 23, the city should re -landscape and improve the area at the entrance to the city on IH -37 where several civic organizations have placed their signs. * * * * * * * * * * * * * Mayor Neal called for the City Manager's report. Mr. Garcia introduced Police Cmdr. Bryan Smith, who was named the administrator of the Crime Control and Prevention District. Cmdr. Smith told the Council that a Crime Control District meeting was held on January 19, 2000, and they reviewed the budget process and discussed the increased involvement of the Budget Office. He noted that the Crime Control District's budget process runs 30 days earlier than the city's, which he explained. He said the board plans to extensively examine the district's budget during their February 16th meeting. With regard to district projects, Cmdr. Smith said there are four Citizen Advisory Councils in operation and the directed patrol program is proceeding. He added that there are 15 police officers currently in the field as a result of the Crime Control District: 10 in the JET program, three directed patrol officers, one drug dog officer, and one Campus Crime Stoppers officer. In addition, 15 officers will graduate from the police academy on February 1 lth; 10 more are in the academy now and the remaining 10 will start the academy in August 2001. Cmdr. Smith said he will provide the Council with an executive summary after each Crime Control District meeting and he stated that the board will be selecting a logo for the district soon. Mr. Garcia announced that a leadership summit is being held March 3-4, 2000, in Austin. The summit is being sponsored by the Texas Municipal League in conjunction with the Association of Mayors, Councilmembers and Commissioners and the Texas City Management Association. Mayor Neal called for Council concerns and reports. Mr. Garrett referred to a letter from Mr. Isaac Martinez regarding dumpsters in the back of his yard. Mr. Longoria asked if the Council would agree to have the Park and Recreation Department identify five possible sites for a skateboard park. Mr. Robert Bryan, a graduate student at Texas A&M University -Corpus Christi, said he and other young people had attended the Council meeting to show their support for exploring possibilities for a skateboard park. He said they would also like Minutes Regular Council Meeting January 25, 2000 Page 26 to recommend that the Council advise the Park Department to begin developing and conducting programs to target sports such as skating, biking, and in-line hockey. Mayor Neal said the Council supports the initiative of looking at sites. Mr. Longoria said that following an organizational meeting in February, the skating enthusiasts will bring back more information to the Council. Mrs. Longoria said that a few weeks ago she met with Mr. Billy Parks, District Engineer of the Texas Department of Transportation, regarding a $15 million project on Hwy. 77 north of Robstown to FM 624. She asked if the Council needed to pass a resolution in support of that project. Mayor Neal asked if the Metropolitan Planning Organization needed to approve a similar resolution. Mr. Garcia replied that staff would review it and make a recommendation to the Council. Mr. Scott pointed out that Ms. Sullivan will be leaving her position as the city's Finance Director, and he thanked her for her efforts. Mr. Scott added that in light of their discussion that day on the Economic Development Corporation and the Convention and Visitors Bureau, the Chamber of Commerce is operating and planning their annual meeting next week. He also said he would like staff to bring back some recommendations regarding offshore duck hunting. Mr. Colmenero asked about a party that is planned for Corpus Christi Beach. Mr. Garcia explained that an organization holds a beach party in Galveston of over 100,000 people. He said the City of Galveston has begun to restrict the administration of the party and the main promoter has a contract to pay Galveston for the cost of holding the party. He said there is a small portion of that event run by two promoters which was not very successful in Galveston last year --it only attracted about 4,000 participants. Those promoters were unwilling to meet Galveston's requirements for increased fees and they have approached the City of Corpus Christi for a permit to hold a party on Corpus Christi Beach for between 2,000 to 4,000 people. He said the Park Department is negotiating with the promoters but their event will not be nearly as large as the Galveston event. There being no further business to come before the Council, Mayor Neal adjourned the Council meeting at 7:40 p.m. on January 25, 2000. * * * * * * * * * * * * *