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HomeMy WebLinkAboutMinutes City Council - 02/22/2000I 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 February 22, 2000, which were approved by the City Council on February 29, 2000. WITNESSETH MY HAND AND SEAL, this 29th 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 February 22, 2000 2:00 p.m. City Staff: City Manager David R. Garcia Deputy City Manager George Noe City Attorney James R. Bray Jr. City Secretary Armando Chapa Assistant City Attorney Alison Gallaway Recording Secretary Rachelle P. Ramon Mayor Neal called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Rev. Ned F. Bowersox, Church of the Good Shepherd Episcopal, following which the Pledge of Allegiance to the United States flag was led by Council Member Scott. 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 February 15, 2000. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * * * * Mayor Neal referred to the board and committee appointments on the day's agenda, and the following appointments were made: Arts and Cultural Commission George Dunson (Reappointed) Linda Avila Ram Chavez Ted Daniel Robert Galvan Elia Gutierrez Taylor Mauck Leticia Mondragon Chuck Anastos (Ex -Officio) Airport Board Frank "Rocco" Montesano C.C. Regional Economic Development Corp. Edward Martin Clemente Garcia Jr. N. Foster Edwards Intergovernmental Commission on Drug and Alcohol Abuse Velma Arellano (Reappointed) Jean Newberry (Reappointed) Lucy Rubio (Reappointed) Minutes Regular Council Meeting February 22, 2000 Page 2 Corpus Christi Convention and Govind Nadkarni (Lodging) Jody Patel (Lodging) Jim Snow (Lodging) Bill Goin (Attractions) Bert Quintanilla (Attractions) Brad Lomax (Restaurant) Cristina Garza (Restaurant) Bill Pruet (At -Large) Visitors Bureau Board Victor Gonzalez (Transportation) Yolanda Olivarez (Transportation) Rosario Carrizo (At -Large) Vangie Chapa (At -Large) Linda Routh (At -Large) Berney Seal (At -Large) John Trice (At -Large) * * * * * * * * * Mayor Neal called for petitions from the audience. * Mr. Jack Gordy, 310 Norton St., said the money spent on the Council members' new chairs could have been spent instead on children's projects. He questioned why the old chairs were replaced, as well as the cost of the new chairs. City Manager Garcia said that over the last several months the Council Chambers have had several improvements, including visual and computer-aided improvements, new carpeting, and changes in the seating for the Council and the audience. He said the chairs that were replaced were over 10 years old and were past their useful life. Mr. Dickson Clements, 5325 Yorktown, said he was Executive Officer for the Builders Association. He said the association's membership appreciates the Council's efforts regarding the development of the bond program that will go before the voters in November 2000. He said their membership implores the Council to stay focused on the issue of economic development. Mr. Sam Wigginton, 5890 Everhart, said he was again asking the Council to allocate more money for the Economic Development Corporation and to make them accountable for their actions. He said the EDC needs to begin working immediately and he looks forward to positive results. Mr. Roland Garza said he represents the Felix Longoria Chapter of the American G.I. Forum. He said that as a long-standing civil rights organization in the community, their position is that they want to communicate with others, including working with city staff to resolve city employees' issues. Mr. J.E. O'Brien, 4130 Pompano, questioned who hired the inspectors on the Mary Rhodes Pipeline, how many there were, and who they worked for. He also asked whether all the required tests were completed prior to the city taking ownership of the pipeline, and whether the high-pressure test was performed. He wondered who advised the city to take ownership if the needed tests were not performed. Mr. O'Brien said he was sure the city's Legal Department was aware of House Bill 156, which tightened up briefings by staff of elected officials. He also said he wondered where the $1 million went that staff said the city would realize by switching to a self-insured health insurance program, and he said he was looking forward to seeing a copy of the city's financial report soon. Minutes Regular Council Meeting February 22, 2000 Page 3 Mr. Richard Cavada, 1606 Craig St., said that increased cost and dramatic losses of service to consumers are the hallmark of privatization. He said that issue demands that the Council not make their decisions based solely on short-term costs or on the opinions of a few people. Mr. Woody Riley, 4513 Janssen, spoke in favor of an economic development tax. He said citizens are seeing the results of not making an investment in the community's future. He encouraged the Council to place that issue on the ballot in November. Mr. Bob Jones discussed the Open Meetings Act and the importance of good communication between the Council and city staff. He said he called the Texas Attorney General's Office and they sent him information about the Open Meetings Act, which he said does not prevent any one of the Council members from calling the City Manager and requesting information. Mr. R.F. Hasker, 1813 Wallace, said the leaks in the pipeline will cost taxpayers a lot of money. He said the city could have had a desalination plant in operation instead of pouring millions of dollars into the pipeline. He said he understood that the level at Lake Texana was down eight feet, and he referred to a legal situation brought by citizens regarding the pipeline. * * * * * * * * * * * * * Mayor Neal called for consideration of the consent agenda (Items 3-11). There were no comments from the Council members or the audience. City Secretary Chapa polled the Council for their votes and the following were passed: 3. M2000-050 Motion authorizing the City Manager or his designee to execute an engineering services agreement with Coym, Rehmet, Gutierrez Engineering Inc. for a total fee not to exceed $37,306 for the Buckingham Estates lift station project. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, J. Longoria, and Scott voting "Aye"; B. Longoria absent. 4. M2000-051 Motion authorizing the City Manager or his designee to execute a construction contract with Malek Inc. for a total fee not to exceed $224,985 for the Gas Department gas-fired building chiller replacement project. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, J. Longoria, and Scott voting "Aye"; B. Longoria absent. Minutes Regular Council Meeting February 22, 2000 Page 4 5. M2000-052 Motion authorizing the City Manager or his designee to execute Amendment No. 4 to the contract for engineering/consulting services with Shiner, Moseley & Associates Inc. in an amount not to exceed $20,000 for pre -planning for post-hurricane/disaster recovery operations project. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, J. Longoria, and Scott voting "Aye"; B. Longoria absent. 6. RESOLUTION NO. 023947 Resolution authorizing condemnation proceedings by the City to condemn fee simple title to: two tracts of land out of Lot 3, Section 8, Bohemian Colony Lands: (a) 30,859 s.f. and (b) 32,978 s.f. and (c) 1,933 s.f. of land out of Lot 5, Section 9, Bohemian Colony Lands, as shown of the attached exhibits A, B, & C, from the owners, Frances Snyder, Individually, and Bryan Lee Holmes and Mark Snyder Holmes as co -trustees of the Paul Snyder Testamentary Trust, to construct street and utility improvements as part of the Kostoryz Road project and for other municipal purposes. The foregoing resolution passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, J. Longoria, and Scott voting "Aye"; B. Longoria absent. 7. FIRST READING ORDINANCE Authorizing the City Manager or his designee to execute a five-year lease with Bayfest Inc. to conduct a festival and related activities on the sidewalks, medians, and seawall along Shoreline Boulevard from IH -37 to the Convention Center complex; the Barge Dock and adjacent bay waters; and the vacant city block bounded by Resaca, Fitzgerald, Chaparral and Water Streets , in consideration of Bayfest paying a one-time $250 permit fee and 100% of the cost of city services for event support, except that in 2000 only Bayfest will pay 75% of police overtime costs; giving Bayfest exclusive use of the premises for 4 days and nonexclusive use for 21 days during a set period for each of the five years, as shown in the lease beginning September 18, 2000. The foregoing ordinance passed on first reading by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, J. Longoria, and Scott voting "Aye"; B. Longoria absent. 8. FIRST READING ORDINANCE Authorizing the City Manager or his designee to execute a five year lease with Bayfest Inc. for the use of the Grande -Grossman House, located at 1517 N. Chaparral, the west of 30' by Minutes Regular Council Meeting February 22, 2000 Page 5 the north 20' of Lot 4, the west of 30' of Lot 5, the east 50' by north 20' of Lot 9, Beach Addition, Block 61, in Heritage Park, Corpus Christi, Nueces County, together with all improvements thereon as their business offices, in consideration of Bayfest Inc. paying a monthly fee of $478. The foregoing ordinance passed on first reading by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, J. Longoria, and Scott voting "Aye"; B. Longoria absent. 9. FIRST READING ORDINANCE Authorizing the City Manager or his designee to execute Amendment No. 1 to a fifteen year lease with MDC Inc. (MDC), authorized by Ordinance No. 023806, which: (a) decreases the premises to 80,134 s.f. fronting Pinson Drive on the west side of the airport, substitutes new exhibits A, B, C, J, and K; (b) increases the initial term by eight months to include construction time; (c) authorizes the sublessee to remedy all defaults; (d) clarifies that MDC'S pollution clean-up liability is limited to pollution it or its sublessee causes; and (e) clarifies the type of environmental assessment to be conducted prior to start of construction; MDC is authorized to sublease the premises to Airborne Freight Corporation under the same terms and conditions. The foregoing ordinance passed on first reading by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, J. Longoria, and Scott voting "Aye"; B. Longoria absent. 10. ORDINANCE NO. 023948 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 second reading by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, J. Longoria, and Scott voting "Aye"; B. Longoria absent. 11. ORDINANCE NO. 023949 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 Minutes Regular Council Meeting February 22, 2000 Page 6 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 second reading by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, J. Longoria, and Scott voting "Aye"; Kinnison abstaining; B. Longoria absent. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 12, agreement with the Corpus Christi Regional Economic Development Corporation (EDC). There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 12. M2000-053 Motion authorizing the City Manager or designee to execute an amendment to the agreement with the Corpus Christi Regional Economic Development Corporation (EDC) to increase the number of members of the Executive Board from twelve to fourteen by appointing the Mayor and County Judge as ex -officio directors. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, J. Longoria, and Scott voting "Aye"; B. Longoria absent. ************* Mayor Neal opened discussion on Item 13, museum's Discovery Hall addition. There were no comments from the audience. Responding to Council Member Gonzales, Mr. Rick Stryker, Director of the Corpus Christi Museum of Science and History, explained that part of the expense of the project involves the restoration and installation of the 17th century Spanish ceiling, which also involves the work of several volunteers. Mr. Stryker showed the Council examples of insets that will be placed in the floor tiles to complement the Spanish -style architecture of the exhibit. Mr. Tom Utter, Assistant City Manager for Development Services, said this project is funded with a $1 million contribution from Janet and Ed Harte through the Coastal Bend Community Foundation. City Secretary Chapa polled the Council for their votes as follows: 13. M2000-054 Motion authorizing the City Manager or his designee to execute a construction contract with B.E. Beecroft Company Inc. for a total fee not to exceed $804,000 for the Discovery Hall Addition to the Corpus Christi Museum of Science and History. Minutes Regular Council Meeting February 22, 2000 Page 7 The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, J. Longoria, and Scott voting "Aye"; Kinnison and B. Longoria absent. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 14, "competitive action plan" for the Water and Wastewater treatment plants. Mr. Ron Massey, Assistant City Manager for Public Works and Utilities, utilized a computer presentation to discuss the reengineering effort. He noted that on October 12, 1999, the City Manager recommended hiring EMA, a consulting firm, to guide the water utility reengineering process, which would be followed after one year by the development of a request for proposals (RFP) with a draft contract and service agreement for two city facilities, Stevens Water Plant and the Whitecap Wastewater Treatment Plant. However, no decision was made on that date because the Council had concerns about the cost of the EMA contract and the impact of privatization on the General Fund. Mr. Massey said that since their presentation in October, staff has revised their plan to do the following: reduce operating costs; focus on the largest controllable costs (personnel, chemicals and energy); minimize consultant costs; set the stage to issue the RFP; build upon EMA's previous work; and recognize ramifications on the General Fund. Mr. Massey said staff is proposing a three -pronged approach to their reengineering effort by utilizing EMA to define the service levels and to integrate into a business plan the efforts of both engineering consultants and utility department staff. The Assistant City Manager listed some of the consultants (other than EMA) which are currently under contract with the city for the Wastewater Department, including BHP, Bath Associates, Urban Engineering, and HDR; for the Water Department they are Montgomery -Watson, BHP, Onyx, and HDR again. City Manager Garcia further explained how the existing consultants can provide assistance with this project. Mr. Massey then discussed specific examples of four focus areas for reengineering efforts. Organization and staffing involves examining current vacancies and shifting the workload where practical; realigning the organization where appropriate; and utilizing incentive programs and employee development. Operations and maintenance includes self -managed work teams, strategic outsourcing, inventory control, predictive/preventive maintenance, and fleet maintenance support. Energy management includes "demand-side" management, load profiling, competitive procurement, and energy-efficient equipment. Processes and technologies consists of automation, treatment plant process improvements, and equipment adequacy and needed upgrades. The Assistant City Manager noted that staffs revised approach to reengineering accomplishes several tasks: expedites the process (to a six-month period with minimal incremental cost); serves as a springboard for city-wide improvements; maximizes the use of resources while minimizing the cost; ensures that customers continue to receive high levels of service by precisely defining those services; and it lowers the bar against which for-profit operators must compete. Minutes Regular Council Meeting February 22, 2000 Page 8 Responding to Council Member John Longoria, Mr. Massey discussed the proposed scope of services for EMA. He said that EMA will prepare a business plan to competitively manage the city's six wastewater treatment plants and the Stevens Water Plant; prepare detailed performance measures and goals for distribution and collection operations and maintenance; and recommend changes that will align the FY 2000-01 budget with the competitive action plan. He said the EMA contract includes the following "deliverables": a report of performance measures and goals for treatment plants, distribution and collection; an outline of preliminary operating budget modifications for FY 2000-01; a competitiveness action plan with 20 years of cost - reduction estimates; and a formal presentation of the competitive action plan and business case. The fee for EMA is not to exceed $124,500, including expenses. He said the time frame for EMA to complete this project is October 2000. Upon verification by Mr. Massey, Mr. Longoria said reengineering is the first step, even if privatization ends up being the final goal. In reply to Council Member Colmenero, Mr. Steve Klepper discussed the concept of laying out a long-term plan for the capital projects. Mr. Massey also commented on service level analyses and how they affect manpower requirements. Mr. Colmenero talked about the importance of the Council receiving periodic updates on the reengineering effort. Council Member Gonzales questioned the need to hire EMA when he said the expertise is already available. He said that sometimes privatization offers more to employees, such as increased salaries and better benefits. He said he has talked to employees who expressed concern about losing their jobs under privatization. Mr. Massey replied that being able to offer incentives to employees is part of a reengineering effort. Council Member Betty Jean Longoria asked Mr. Massey if he had participated in reengineering prior to coming to Corpus Christi, and he replied that he had. He added that if the issue of reengineering had not been raised, there is a question whether the city would be moving to make these improvements. Mr. Garcia said this reengineering proposal is a very intensive effort in a short period of time. He added that EMA focuses exclusively on reengineering utilities. Mayor Neal called for comments from the audience. Mr. Jerry Coffey, Regional Vice President of U.S. Filter, said he was accompanied by Ms. Vilma Luna, a local attorney (and state representative). Mr. Coffey encouraged the city --through either a consultant, staff or a combination thereof --to establish and then assess through reengineering efforts levels of service in all areas of water and wastewater activities. He also encouraged them to identify opportunities to start saving money soon while improving levels of service at no additional cost. If the city was to contract out one function, such as the operation of the Stevens Plant, he contended that it should have no impact on the transfer of utility to General Fund. He added that procurement documents are available for review and can be tailored to meet the city's specific needs. In addition, he said the employees will gain knowledge through this process. Minutes Regular Council Meeting February 22, 2000 Page 9 Mr. Richard Cavada said if the privatization issue had not been introduced, there is no doubt that cost-effectiveness would have been demanded due to stretched resources. Dr. Gonzales asked if the city could develop a competitive action plan without hiring a consultant. Mr. Garcia replied that city staff could do it but it would probably take three times as long (three years) to end up with the same result. Council Member Scott expressed frustration that the city has not started the process yet and reiterated that he wants to get to an RFP process. Mr. Garcia explained that there are two distinct processes. First, reengineering is a continual process by changing the way a business is operated; in other words, he said, the city will be continually reengineering. He said they are committing to competitively bid the city's water and wastewater utilities, which involves developing a very detailed RFP, which could take five to six months, followed by a final decision in the fourth quarter of 2001. Council Member Kinnison said this proposal is an improvement over the original one presented in October; however, the question of the affect of privatization on the General Fund remains and will need to be addressed at some point. He said while there is a hesitation to hire consultants, he expects that EMA should be able to provide the necessary information fairly quickly. City Secretary Chapa polled the Council for their votes as follows: 14. M2000-055 Motion authorizing the City Manager or his designee to execute a contract with EMA Services Inc. for a total fee not to exceed $124,450 to develop a "Competitive Action Plan" for the Water and Wastewater departments. 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 a brief recess. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 15, McArdle Road Phase 1 improvements (Everhart to Weber). There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 15. RESOLUTION NO. 023950 Resolution authorizing the City Manager or his designee to execute Amendment No. 1 to the advanced funding agreement with the Texas Department of Transportation in the estimated amount of $139,663.74 for construction of the McArdle Road Phase 1 improvements Minutes Regular Council Meeting February 22, 2000 Page 10 (Everhart Road to Weber Road) and associated drainage work. The foregoing resolution 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 16, group health insurance. Mr. Pat Alba, Director of Risk Management, said that following last week's discussion about the city's health insurance plan, Mayor Neal asked staff to bring back information about options he had identified. The first option was to continue the existing program and to make no changes to the premiums or the benefits. He said that if adopted, that option would result in a deficit in the Group Health Insurance Fund this year because the rising prescription cost would continue. He said the second option was to seek a fully insured carrier through the development of an RFP. Under that scenario, he said the city would probably experience an increase. The third option was to remove the existing prescription benefit, which is a core part of the city's health insurance program. He said the fourth option was to increase health premiums and prescription co -pays, which would address both the need for additional revenue as well as curtail the rising cost of medicine and the over -utilization of brand name prescriptions. Specifically with regard to the prescription co -pay program, Mr. Alba discussed five separate options available to the Council: Option 1 - reflects the current co -pay amounts of $0 for generics and $10 for all brands. He said the cost to the city is estimated to be $2.7 million this year and it is expected to increase unless cost control measures are implemented. Option 2 - $5 cost for generics, $20 for brands when no generic is available, and $30 for brands when a generic is available. He said that option only addresses part of the problem at an estimated cost avoidance of $600,000 annually. Mr. Alba further discussed the prescription co -pay options: Option 3 - $5 for generics, $15 for brands when no generic or substitute is available, and $30 or 30% (whichever is greater) when a brand is used by choice despite the availability of generics or substitutes. That could result in an annual estimated cost avoidance of $700,000. Option 4 - $5 for generics, $20 for brands when no generic or substitute is available, and $30 or 30% (whichever is greater) when a brand is used by choice despite the availability of generics or substitutes, resulting in a cost avoidance of $800,000. Option 5 - (recommended by staff) $5 for generics, $30 for brands when no generic or substitute is available, and $30 or 30% (whichever is greater) when a brand is used by choice, resulting in an estimated cost avoidance of $1 million annually (with an estimated cost to the city of $1.7 million). Responding to Council members' questions, Mr. Alba said that co -pay Options 3, 4 and 5 all include the $30 or 30% (whichever is greater) when a brand is used by choice despite the availability of generics or substitutes. A discussion ensued about the use of brand names over generics or substitute medications. Mr. Alba pointed out that currently brand name utilization is at Minutes Regular Council Meeting February 22, 2000 Page 11 86% while in 1995 the utilization of generic medications was 60%. In order to get that cost under control, he said there needs to be a substantial difference between what is the co -pay amount for generic medications versus the co -pay amount for brand medications. He added that drastic options would be to use a formulary (a list of medications approved for use by the insurance company) or for the employer to only pay for generic medications and no brands. Mr. Garcia said another option would be to go back to the way the program was structured prior to 1992, which is to have a separate program that deals with the true cost of providing services to the retirees versus the lower costs incurred by active duty personnel. Mr. Garcia noted that last week staff recommended a 25% premium increase effective March 1, 2000, no premium increase in March 2001, and a 7% increase in March 2002, 2003, and 2004. In addition, he said, in order to make up the deficit that has occurred in the Group Health Insurance Fund, the co -pays will have to be increased and money will have to be taken out of the Self -Insurance Fund. Mr. Garcia went on to say that if the Council adopts an option other than the one recommended by staff, it has long-range financial impacts on the rates charged to employees, which Deputy City Manager Noe explained. Council Member Kinnison said he did not think staff s recommendation addressed the long- term issue. He said even with those proposed changes, there is a significant impact on the General Fund in future years on costs that have not been in the five-year projections. Mr. Kinnison asked if the 25% premium increase applied to all city employees. Mr. Noe replied that it does not apply to the firefighters, who have a separate plan. Mr. Kinnison made a motion to direct staff over the next four months to analyze the health insurance plan in great detail, including possibly revising the benefits and putting out an RFP for a fully insured carrier; Council Member Cooper seconded the motion. Mayor Neal suggested that all Council members be allowed to make their comments before any motions are made. Mr. Kinnison withdrew his motion. Responding to Council Member Scott, Mr. Noe said staff was projecting a 10% annual increase in prescription costs. Mr. Alba reiterated that the proposal increases the differential between brand and generic prescription costs with the intent of discouraging utilization of brand medications. Further discussion followed about prescription costs and rising utilization. Mr. Scott said that since there were statements made by staff a year ago that are inaccurate, his confidence level in the information staff distributed today is very low. He said staff needs to continue to update the Council on a regular basis regarding the status of the health insurance plan. Ms. Cooper said she is glad she voted against this plan last year, adding that she felt Option 3 would be the most fair to the employees. She described scenarios to illustrate the difficulty of having physicians indicate which medications are medically necessary so as to avoid paying a higher co -pay amount. Minutes Regular Council Meeting February 22, 2000 Page 12 Dr. Gonzales also expressed his concerns about similar scenarios involving prescriptions. Mr. Alba discussed how the use of a formulary would simplify that situation, and he said the options require interaction with a person's physician. Dr. Gonzales discussed the co -payments for birth control and how all of the co -payment options affect lower-income persons. He discussed the concept of requiring that only generic medications be used. Responding to Council Member Garrett, Mr. Alba said that approximately 70% of medications are available in generic form. A discussion followed about the employee's cost versus the city's cost for medications. Mr. Longoria said that when the Council considered the health insurance plan last year, he and other Council members argued that the risk of a self-insured plan was too great, which is why they supported the option of a fully insured plan. He said the mistake the city made was that it did not manage the plan properly, such as monitoring the over -utilization of brand prescriptions. Mr. Alba said that with this self-insured plan, the city will benefit from the remaining three-year guarantee of provider fees. Mayor Neal pointed out that part of the risk is factored into the stop -loss insurance. Mr. Longoria suggested that the Council's Administrative Analysis Committee continue to study questions related to the health insurance plan. Mr. Kinnison said that even if the Council adopts Option 5, the city is taking on an additional $2.5 million of cost in the FY 2000-01 budget, of which about $1 7 million goes to the General Fund, which is already going to be under tremendous pressure. He said he agreed with Mr. Longoria that the health plan needs to be reviewed in a timely manner, and he added that the information about increasing costs was readily available last year when that situation began to occur. Mrs. Longoria said that when the Council considered the health plan last year, they took into account the benefits that were available to employees. However, she said, in order to avoid bankrupting the system, adjustments may need to be made, including better education of employees regarding the over -utilization of brand medications. Mr. Garcia admitted that the city has problems in its insurance group right now, including in the way they report information to staff. He added that Council oversight would be welcome. Further discussion followed about the impact on the General Fund and other budget issues. Responding to Mayor Neal, City Secretary Chapa said the ordinance before them under Item 16 amends the budget and includes the fund transfer to meet increased group health insurance costs. Mr. Garcia added that approving co -pay options other than Option 5 will require that staff identify other sources of funds. The Mayor then called for comments from the audience. Mr. Richard Cavada said the Council must implement incentives to reduce spending. A brief discussion ensued regarding the differences between the prescription co -pay options. Dr. Gonzales made a motion to amend staff's recommendation by substituting Option 3 ($5 for generics, $15 for brands when no generic or substitute is available, and $30 or 30%, whichever is greater, when a brand is used by choice despite the availability of generics or substitutes). The motion was seconded by Ms. Cooper. Minutes Regular Council Meeting February 22, 2000 Page 13 Mayor Neal asked where the additional $300,000 would come from if Option 3 is approved. Mr. Garcia said staff would have to come back with an answer to the Council. He added that there would be a rate increase for the next three years of 5% and then a 10% rate increase after that. Dr. Gonzales said Option 3 is better for lower-income employees. Mr. Alba said there are some city employees who meet the income criteria and are on Medicaid but they are not on the city's insurance. Mr. Chapa polled the Council for their votes on Dr. Gonzales' motion, and it failed to pass by the following vote: Neal, Cooper, Garrett, and Gonzales voting "Aye"; Colmenero, Kinnison, B. Longoria, J. Longoria, and Scott voting "No." Mr. Chapa polled the Council for their votes on Item 16, and it failed to pass by the following vote: Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Neal, Colmenero, Cooper, Garrett, and Gonzales voting "No." Mayor Neal said he met with a group of retired employees last week and he said the co -pays are a big issue with the retirees and lower -paid employees. He said if they adopt Option 3 staff can bring back suggestions next week on where to find the additional $300,000. Following additional discussion, the Mayor called for a brief recess. Upon reconvening, Mr. Garrett said he wished to make a motion to reconsider Option 3. City Attorney Bray said the motion to reconsider must be made by a Council member on the prevailing side when that motion was originally voted on (someone who voted against it), and the motion to reconsider would have to pass by a two-thirds vote. Responding to Mr. Garrett, Mr. Alba said that Options 3, 4, and 5 all contain a provision whereby the employee would not have to pay 30% of the brand medication's cost if their physician indicates (and the insurance company verifies) that no generic or substitute is available for that specific medication. The difference between the three options is that in that circumstance, the employee would pay $15 for the medication under Option 3; $20 under Option 4; and $30 under Option 5 (staff's recommendation). Also, under all three options generic medications would cost $5. Mr. Alba emphasized that the intent was to encourage employees to utilize generic medications whenever possible because it saves both the employee and the city much more money. Mr. Garrett then made a motion to reconsider Option 5, seconded by Mr. Longoria. Dr. Gonzales reiterated that he was opposed to Option 5 because he said it penalizes poor people. He said staff should go back and find the extra $300,000 to adopt Option 3 instead. Mr. Chapa polled the Council and the motion to reconsider passed by the following vote: Neal, Garrett, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Colmenero, Cooper, and Gonzales voting "No." Mr. Chapa then polled the Council for their votes on Item 16 as follows: Minutes Regular Council Meeting February 22, 2000 Page 14 16. ORDINANCE NO. 023951 Ordinance amending Ordinance No. 023702 which adopted the FY99-00 Budget to reduce revenues, expenditures, and the corresponding appropriation for Self -Insurance Fund No. 5410 and increase same for Group Health Insurance Fund No. 5510, by $1,000,000, and adjust the contribution to said funds by other contributing funds accordingly; to transfer $683,121 to Group Health Insurance Fund No. 5510 from other funds; to appropriate $2,041,300 in Group Health Insurance Fund No. 5510 to meet increased group health insurance costs; to authorize the City Manager to make transfers and adjustments within individual funds to implement the above actions. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Garrett, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Colmenero, Cooper, and Gonzales voting "No." Mayor Neal asked that the Administrative Analysis Committee work with staff to bring back any benefit changes between now and the time the Council adopts the new budget. Mrs. Longoria said she wished to stay abreast of how staff plans to educate city employees about the health plan. Mayor Neal opened discussion on Item 17, consideration of Reynaldo Madrigal's appeal of the Cable Communications Commission's ruling of November 3, 1999, regarding set times for repeat programming on the Public Access Channel City Attorney Bray explained that Mr. Madrigal, on behalf of the Coffee Club, made a complaint to the commission that AT&T Cable would advertise the first showing of his hourly program but they did not guarantee the time of the show's repeat showing. The Commission denied Mr. Madrigal's request. Mr. Bray added that the rules adopted by the Public Access Users Group (PAUG) and approved by the Commission are explicit in saying that the second showing will not be guaranteed. He said it is clear that the Commission followed their own rules in making their decision, so staff recommends that Mr. Madrigal's appeal be denied. Mayor Neal called for public comment. Mr. Rey Madrigal, 2307 Morgan, said he thought this issue would be easy because the last time he appeared before the Council, he said they approved airing the second showing of his program. He said the public access channel has a total of 98 hours available for programming, a certain amount of which is available for repeats. He questioned why the "TV Guide" produced by the Corpus Christi Caller -Times advertises the repeat showings of a program produced by the Corpus Christi Independent School District. He said people call him and ask him when his program will be repeated and he tells them he does not know. Ms. Anita Fillmore, Vice President of PAUG, explained that public access Cable Channel Minutes Regular Council Meeting February 22, 2000 Page 15 10 has a total of 62 shows, and 15 of them are repeats. She said PAUG and the Cable Communications Commission determined that if someone goes to the extra effort of producing a brand new show once a week (as Mr. Madrigal does), they be allowed to have an extra showing. She said Mr. Madrigal did not mention that there are local origination programs which air on cable access as well as paid programming, such as "infomercials," and government access. In addition, she said public access also airs special events, such as the upcoming installation of the new Catholic bishop. Ms. Fillmore said all of the programs which air on the public access channel are entered into a computer, which assigns air times. She said AT&T does not know until the preceding day at noon which shows will air the next day as repeats. Council Member Garrett said he talked with officials from AT&T Cable and he was told that Mr. Madrigal's program airs every Saturday and then a repeat of it is shown as a "filler" on a floating basis. He said they assured him that Mr. Madrigal was being treated in the same manner as the other producers of programs. Mr. Madrigal said he does not believe that because the "TV Guide" publishes a different schedule. Ms. Fillmore said the PAUG and AT&T do not provide the public access schedule to the newspaper --she said that is something the newspaper obtains on its own and occasionally the information is erroneous. She added that the PAUG originally voted that there would be no repeats of any of the local shows. However, they revisited the issue on behalf of Mr. Madrigal and concluded that the people who produce a new show every week should be granted a second airing but only as a filler with no idea exactly when it will air. Council Member Kinnison said the statement had been made that the Council considered and approved the issue of second airings of programs, which they did not. Mr. Bray verified that. City Manager Garcia said if the Council wished to sustain Mr. Madrigal's appeal, they would need to vote to do that; otherwise they could take no action and the decision of the Cable Communications Commission would stand, which is to leave the scheduling as it currently exists. Mr. Bray added that all that is before the Council today is the narrow issue of whether the Cable Commission has misapplied the existing rules. He said there is no factual dispute and it is clear the Commission followed their rules. Consequently, there are no grounds to grant Mr. Madrigal's appeal. He said the Council could only change the Commission's rules by changing the ordinance. Responding to Council Member Gonzales, Mr. Bray reiterated that the information in the "TV Guide" regarding public access shows is not provided by PAUG or AT&T. Dr. Gonzales said the issue is that someone is making a separate ruling by allowing the school district to advertise second showings of their program while Mr. Madrigal is not allowed to, which he said is a double standard. Ms. Fillmore said there is no double standard at work. Mr. Kinnison said they should instruct staff to find out the facts. Mr. Garcia reminded the Council that their area of jurisdiction is whether AT&T applied their rules. He said changing the rules is a whole different process. Mr. Bray added that the appeal is simply that AT&T would not Minutes Regular Council Meeting February 22, 2000 Page 16 guarantee a time for the second airing of Mr. Madrigal's program; the appeal does not say that there was discrimination. He said it is staff's recommendation that the Council take no action on this issue. Dr. Gonzales said AT&T would be breaking the rules if they allow the school district to have five separate airings of its program and not Mr. Madrigal. He said that is what staff needs to determine. Mr. Bray said staff can provide information on that question but it is outside of what is before the Council today. The Council took no action on Mr. Madrigal's appeal. * * * * * * * * * * * * * Mayor Neal announced the two executive sessions, pursuant to Texas Government Code Section 551.071, regarding the following: to consult with the City's attorney about the City's legal rights and remedies in connection with the Lake Texana Pipeline project, with possible discussion and action in open session; and regarding 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. The Council went into executive session. The Council returned from executive session. * * * * * * * * * * * * * Mayor Neal called for the City Manager's report. Mr. Garcia said city crews will begin delivering the new trash containers for the Solid Waste Services automated pilot program. With regard to upcoming items, Mr. Garcia said staff is working on a follow-up presentation to last week's bond issue presentation to incorporate the Council's suggestions, which they will bring back to the Council in two weeks. The Mayor reminded the Council that they will be meeting on March 7th but not on March 14th because many Council members are planning to attend the National League of Cities Congressional City Conference in Washington, D.C. He added that the annual Council retreat is scheduled for May 2, 2000. He then called for Council concerns and reports. Mr. Scott said he noticed that the Council request to set up appointments with the refineries' corporate offices had been taken off the action list, and he said he would like the request to stay on the list until they establish their first meeting. Mrs. Longoria referred to suggested sites for a skate park. She said she did not think that Nueces River Park and West Guth Park should be considered as possible sites. Mr. Longoria said they should be taken off the list. Ms. Cooper said a meeting is scheduled for February 28, 2000, at 6:30 p.m. at Meadowbrook Elementary to discuss flooding problems around King High School. The meeting will be hosted by Mr. Garrett, Dr. Gonzales, Mr. Scott, and Ms. Cooper. Mayor Neal asked City Secretary Chapa to Minutes Regular Council Meeting February 22, 2000 Page 17 post that meeting in case a quorum of Council members is present. Responding to a question from Mrs. Longoria, Mayor Neal said that public hearings will be held to discuss the bond program. Mr. Garrett said he had read that Mrs. Longoria would be going to Peru. Mrs. Longoria said she will be attending meetings in Lima, Peru, on March 3-10 as a representative of the United States. Mr. Colmenero asked if staff could identify centrally located areas for a possible skate park. He also asked for updates on the CDBG projects. Dr. Gonzales said he was absent from last week's Council meeting because he was in Mexico City with representatives from the Port of Corpus Christi Authority to discuss refrigeration warehousing with officials from the state of Mexico. He said they spoke favorably about the idea of doing business with Corpus Christi. There being no further business to come before the Council, Mayor Neal adjourned the Council meeting at 8:45 p.m. on February 22, 2000. * * * * * * * * * * * * *