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HomeMy WebLinkAboutMinutes City Council - 07/11/2000I 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 July 11, 2000, which were approved by the City Council on July 18, 2000. WITNESSETH MY HAND AND SEAL, this 18th day of July, 2000. Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting July 11, 2000 9:05 a.m. PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Dr. Arnold Gonzales Council Members: Javier D. Colmenero Melody Cooper Henry Garrett Rex A. Kinnison Betty Jean Longoria John Longoria* Mark Scott 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 Dr. Jim Cory, First Presbyterian Church, following which the Pledge of Allegiance to the United States flag was led by Council Member Betty Jean Longoria. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Neal called for approval of the minutes of the regular Council meeting of June 27, 2000. A motion was made and passed to approve the minutes as presented. *Council Member John Longoria arrived at 9:08 a.m. * * * * * * * * * * * * * Mayor Neal referred to the board and committee appointments on the day's agenda, and the following appointments were made: Human Relations Commission Oscar Hinojosa (Chairman) Olga Tamar (Reappointed) Anna Mercado -Flores (Reappointed) Sandra Terrell -Davis (Reappointed) William Bonilla David Phillip Engel Joshua Jimenez Joey Maldonado Scott Elliff Rev. Willie Davila (Advisory) Water/Shore Advisory Committee Dr. Joseph Horvat (Reappointed) Steven Moody (Reappointed) Alan Dinn (Reappointed) Frank Beck (Reappointed) Dr. JoAnna Mott (Reappointed) Terri Nicolau Planning Commission Neill Amsler Eloy Salazar Robert Zamora Minutes - Regular Council Meeting July 11, 2000 Page 2 Intergovernmental Commission on Drug and Alcohol Abuse Shelley Hinojosa Sister City Committee Danielle Solis Ethics Commission Irma Caballero Commission on Children and Youth Missy Medary (Reappointed) Rosa Balderas Megan Stripling Guy Watts Mayor Neal referred to the special discussion items on the agenda (Item G.). The first issue to be considered was the Bond Issue 2000 draft ordinance and proposed ballot language. City Attorney Bray explained that the proposed ballot would have six propositions as follows: Proposition No. 1, Street Improvements, in the aggregate principal amount of $20,776,000; Proposition No. 2, Park and Recreation and Museum Improvements, $4,694,000; Proposition No. 3, Public Health and Safety Improvements, $5,330,000; Proposition No. 4, Seawall Improvements, 1/8th of a cent sales tax; Proposition No. 5, Arena Construction, 1/8th of a cent; and Proposition No. 6, Economic Development Sales Tax, 1/8th of a cent. Mr. Bray pointed out that staff prepared two options (long and short versions) of Proposition Nos. 1, 2, and 3. He said the long form for each of those propositions lists the individual projects while the short form does not, which would leave the Council with more flexibility to deal with changes and circumstances that might come up. Mr. Bray explained that each of the first three propositions contains a total proposed amount for funding but does not list individual project amounts since the projects have not yet been designed. Mr. Bray added that Section 10 of the proposed ordinance contains language that sets the parameters for what the economic development sales tax (Proposition No. 6) could be expended for; i.e., "only to attract and secure facilities and employers who contractually agree to add new facilities or expand existing facilities in Corpus Christi, and to permanently hire or maintain employees in Corpus Christi." He said Section 11 relates to the seawall improvements and he referred to a letter the Council received from the Chief of the Bond Desk of the Attorney General's Office, who approved the seawall as a legitimate item for funding under the economic development sales tax. Mayor Neal asked if the order of the propositions on the ballot could be changed, and Mr. Bray said they could be. Responding to Council Member Garrett, City Secretary Chapa said the Council has the choice of having the city's bond issue included on the ballot for the presidential election (in which case the propositions would be at the end of the ballot on the opposite side), or having a separate ballot. Mr. Garcia and Mr. Bray further responded to Council members' questions regarding the proposed ballot language (the long form versus the short form), the letter from the Attorney Minutes - Regular Council Meeting July 11, 2000 Page 3 General's Office, the timing of the projects, and related issues. Mr. Garcia said that if the propositions are approved by the voters, the Council will be able to make adjustments as the bond program is implemented while not exceeding the aggregate amounts for each group of projects. Council Member Kinnison requested additional information about Proposition No. 6, the economic development sales tax. Mr. Bray said that if the Council is in agreement on the substantive provisions of the ordinance, staff could bring the proposed ordinance back next week for first reading. He said staff could include a caveat that Nueces County has not yet decided on all the election precincts and when they do that in August, staff could bring an amendment to the ordinance with those details. There were also questions about the provisions of Sections 4A and 4B of the Development Corporation Act of 1979. Following additional discussion, the Council reached consensus on the following issues: to adopt the long form for Proposition Nos. 1, 2 and 3; to include specific dollar amounts for the parks listed under the subheading of "Renovation/Development of Existing Parks"; to include the word "multi-purpose" before the word "arena" in Proposition No. 5; and to create a sunset provision of 12 years for Proposition No. 6. Mayor Neal said the Council would formally adopt the ordinance next week. He then called for a brief recess. * * * * * * * * * * * * * City Manager Garcia said staff would continue with their presentations on the FY2000-01 operating budget. The first presentation that day was made by Mr. Rudy Garza, Acting Budget Director, regarding the Internal Audit and Human Relations departments. Utilizing a computer presentation, Mr. Garza said staff was recommending eliminating both departments, which would result in a cost savings of $185,693 in the Internal Audit Department (with three positions) and $263,950 in the Human Relations Department (which has six positions). Mr. Garza said the basic functions of Internal Audit are as follows: ensure adequate controls are in place to safeguard assets and control resources; monitor compliance with existing local, state, federal, legal and regulatory requirements; investigate possible violations of laws or policies and establish recommended corrective actions; and identify risks inherent in the government and the potential for errors or irregularities. To meet those basic functions, Mr. Garza said the Finance Department will continue current practices of reviewing utilization of city resources in compliance with all governing regulations; the Finance Department and respective departments will continue established internal controls for cash transactions, including "spot" cash audits; the outside auditors' review of internal controls will be expanded; the Legal Department will continue to review and monitor the utilization of city resources, policies and procedures, including the development of required corrective actions; and the Finance Department and the Office of Management and Budget will conduct necessary intemal audits and investigations. Mr. Garza noted that funding is included in the proposed budget to outsource additional audits. Minutes - Regular Council Meeting July 11, 2000 Page 4 Council Member Garrett asked if the Internal Audit Department had been eliminated once before and then reestablished. Mr. Garza replied that the reestablishment of that department was a finding in the Mercer Report. He said the analysis revealed that at that time the organization did not have adequate controls in place in order to safeguard the city's assets. However, he said those controls are currently in place in the Finance Department and other operating departments and the Internal Audit Department monitors their efforts. He said checks and balances are provided by the fact that the Finance Department and Management and Budget Office monitor things differently. Council Member Gonzales explained why he was concerned about eliminating the Internal Audit Department. Mr. Garza said a major issue is how to operate within the available resources and making decisions that will have the least impact on operations. He said staff believes the Internal Audit Department can be eliminated while continuing to provide the necessary functions. Mr. Garcia acknowledged that the Internal Audit Department does an excellent job and provides an extra safety net for the primary enforcement which takes place in other departments. He added that the city's external auditors provide another level of safety on top of that. He said as reductions were being made in city departments across the board, they examined how effective it would be to make a major reduction in the Internal Audit Department; consequently, they concluded that it was basically more cost-effective to eliminate the entire unit. He said having an Internal Audit Department is good for the organization but they just cannot afford it at this time. Even with the elimination of that department, the city still maintains a high level of internal and external controls. Responding to Council Member Colmenero, Mr. Garcia said he was not entirely sure that a traditional internal audit function is the way of the future. He said many other communities are establishing municipal integrity units that deal not just with the financial and auditing functions but deal with the whole issue of integrity, ethics and enforcement of standards within an organization. With regard to staff's recommendation regarding the Internal Audit Department, Mr. Garcia reiterated that they looked at every activity in the city and focused on those that deliver basic services to the public as well as those that have overlapping areas of responsibility and redundant services. Deputy City Manager Noe said if the Council approves this recommendation, two of the Internal Audit staff members will go to the Finance Department. Dr. Gonzales said he thought one of the functions of the Internal Audit Department was to provide information upon request from the City Council and the City Manager. Council Member Betty Jean Longoria also explained why she was concerned with this recommendation. Council Member John Longoria questioned whether the Mercer Report reflects how the city is operated at this time. Council Member Kinnison said that while it is difficult to consider eliminating a department, it is also difficult determining what other sacrifices will be made to conform with the budget constraints. He said if an internal audit function is reestablished in the future, he feels that department should report directly to the Council. Mr. Garza said the second department that staff is recommending eliminating is the Human Relations Department. He said the department's total expenditures are $337,300 and the estimated EEOC revenues are $73,350, for a net savings of $263,950. He said the basic functions of the Human Minutes - Regular Council Meeting July 11, 2000 Page 5 Relations Department are to perform necessary services regarding complaints from citizens throughout the area alleging discrimination in employment, housing and access to places of public accommodation. Services include intake, investigations, reconciliations, resolutions, and assistance for EEOC referrals. He said they also provide training, public information, and other requested assistance. Mr. Garza said that if the Human Relations Department is eliminated, citizens can (as they do now) contact the EEOC regional office in San Antonio, either in person, by mail, or by telephone. In response to Council members' concerns, Mr. Garcia said staff examined two other options: maintaining the Human Relations Director's position in the Human Resources Department (for approximately $80,000) in order to continue to coordinate with the San Antonio EEOC office; or allowing the department to operate on grant funds and EEOC revenues (for a total of $173,000). In order to fund four positions under that option, an additional contribution of $41,000 from the General Fund would be necessary. Mr. Colmenero said that by eliminating the Human Relations Department, the city was deferring its responsibility to provide those services and would have wasted the money spent on the disparity study. He commented on the fact that that department serves poor and underprivileged people. Dr. Gonzales also said he was opposed to eliminating the department and noted that the city was finally making progress on the fair housing ordinance. Dr. Helen Gurley, Human Relations Director, then responded to Council members' questions. Following additional discussion, Mr. Longoria said he would prefer that Dr. Gurley report directly to the City Manager. Mr. Garza then distributed an alternate operating budget for the Human Relations Department for FY00-01 detailing the option Mr. Garcia previously discussed. * * * * * * * * * * * * * The third budget presentation was made by Ms. Cynthia Garcia, Director of Human Resources. She said that department provides the following services: recruitment of qualified applicants; employee relations, including grievances, disciplines, and EEO charge investigations; governmental compliance with drug testing, EEO reporting, ADA compliance, and HR policy development; labor relations with regard to the Civil Service Commission and the Civil Service Board, as well as support to the police and fire collective bargaining agreements; and training, development, and overseeing the city's retirement system. Ms. Garcia said the Human Resources Department's current budget is $1.65 million with 24.25 full-time equivalents (FTE's) and the proposed FY00-01 budget is $1.33 million with 20.25 FTE's, for a difference of $325,455 and 4 FTE's. She said the proposed budget consists of the following: salaries and retirement - 66.5%; other internal allocations - 13.6%; insurance allocations - 7.7%; operating costs - 6.4%; contractual services - 4.3%; and debt service - 1.5%. She said the significant changes were salaries (FY99-00 merit increase impact) - increase of $34,297; insurance allocations - increase of $3,323; and MIS allocation charge - decrease of $282,372. Minutes - Regular Council Meeting July 11, 2000 Page 6 Ms. Garcia said that in addition to the MIS allocation, the Human Resources Department was asked to reduce its budget by $120,580 through the following reductions: four FTE's for $110,306 - Office Assistant I, HR Analyst II, Secretary, and HR Technician; temporary services - $9,633; professional services - $6,957; and travel - $3,509. She said the operational/program changes that would result are reorganization of the department; reverting from specialists to generalists; prioritization of competing customer services with a longer response time; and less time for proactive process improvements. Ms. Garcia also discussed the need for a citywide compensation and classification plan study. Ms. Garcia then responded to Council members' questions regarding overtime, employee relations functions, and the impact of the reductions on customer service. * * * * * * * * * * * * * The fourth budget presentation was made by Mr. Herb Canales, Director of Libraries. He noted that the Libraries' adopted FY99-00 budget is $3.04 million with 70.5 FTE's and the proposed FY00-01 budget is $2.96 million with 63.5 FTE's, for a difference of $78,713 and 7 FTE's. He said that includes the budget for the Janet Harte Library, which is scheduled to open next month. Mr. Canales said the significant increases are: salaries (FY99-00 merit increase impact) - $111,373; insurance allocations - $36,235; books and periodicals - $24,725; lease payments - $7,468; MIS allocations - $38,908; and light, heat and power - $19,035. He said the reductions entail $50,458 less in operating expenses and $238,875 less in salaries and benefits involving the following positions: Assistant Library Director, Librarian I, Librarian IV, two Library Assistant II's, two Senior Library Aides, and two part-time custodial workers. Mr. Canales said the operational/program changes include a reduction in the hours of operation at the Central Library from 70 per week to approximately 50 and at the branch libraries from 56 to about 48 per week. Also, the children's department at the Central Library, which serves a low-income area, will have been effectively reduced from three positions to one, thereby eliminating most services to children there. A discussion ensued about the importance of the children's program and literacy in general, as well as the hours of operation at the libraries. Mr. Canales pointed out that the Harte Library will be open on Sundays during the school year due to its association with Flour Bluff High School; however, the branch libraries are not open on Sundays. He said that with the addition of the Gates grant to purchase computers, the libraries will have 100 computers for public use, all of which have been paid for with outside funds. Mr. Canales said that although this year is not a problem, he wanted the Council to be aware that actual expenditures of less than $2.8 million annually will result in a loss of the South Texas Library System and Interlibrary Loan grants totaling $904,241. He said the city will also lose its state membership and not be eligible to apply for grants where membership is required. Mr. Canales commented on the support of the Friends of the Library and the Foundation. He also further responded to Council members' questions. Minutes - Regular Council Meeting July 11, 2000 Page 7 Mayor Neal announced the following executive session, pursuant to Texas Govemment Code Section 551.071 for attorney client consultation regarding issues raised by new area landfills, with possible action and discussion in open session regarding operating and financial issues for the city's landfills. The Council went into executive session. The Council returned from executive session. * * * * * * * * * * * * * The fifth budget presentation was made by Mr. Norbert Hart, Director of Housing and Community Development (HCD). He said that although HCD is composed of four divisions, they would be discussing the two General Fund divisions --Building Inspections and Code Enforcement. He said the net operating budget for FY99-00 is $1.78 million and the net cost for FY00-01 is $1.58 million, a difference of $196,283. He said the significant increases are: salaries - $50,857; insurance allocations - $42,203; MIS allocations - $157,660; other allocations - $9,071; and legal fees - $5,000. Mr. Hart said the proposed reductions are: demolition/clean-up costs - $53,689; other operational costs - $17,267; travel - $5,000; and salaries and retirement - $120,327 for Building Inspector, Electrical Inspector, Plans Examiner, and Office Assistant I. He said that after this budget, all of the trades (building, electrical, plumbing, and mechanical) will have four inspectors and one chief inspector. He said in order to reach the target budget, staff also reduced the monies available for demolition and clean-up costs by $53,689 from last year, leaving $82,204. Mr. Hart said those reductions will result in the following program changes: extend the average inspection time from 24 hours to 48 hours; increase the plan review time from four to seven working days to seven to 10 working days; and increase the waiting time in the lobby for obtaining permits. He said the reduction in the amount of demolition/clean-up monies will result in a change from a proactive approach to an emergency need basis. Mr. Hart then responded to Council members' questions regarding responsiveness to citizens' needs, clean-up monies, and other issues. * * * * * * * * * * * * * Mayor Neal referred to the presentation on the day's agenda, recognition of Victor Lara Ortegon's radio broadcasting career and declaring July 11, 2000 as "Victor Lara Ortegon Day." The Mayor then called for petitions from the audience. Mr. Jack Gordy, 310 Norton, said he counted 22 political signs from Everhart to Ayers that have been up since March 2000. He discussed the importance of the city enforcing the state law regarding signs. Council Member Betty Jean Longoria said the Council has spent the whole morning considering budget cuts throughout the city and right now signs are not important. Mrs. Pat Suter, 1002 Chamberlain, praised several staff members for their work in Blucher and Suter parks. She also commented that public services have greatly decreased since she came to Corpus Christi in 1960, which she questioned. Mayor Neal replied that costs have increased in the last 30 years. Minutes - Regular Council Meeting July 11, 2000 Page 8 Mr. R.F. Hasker, 1813 Wallace, referred to an article which stated that Packery Channel will not improve the Laguna Madre and he commented on the consideration of the tax increment financing (TIF) district item during the June 27, 2000 Council meeting. City Manager Garcia verified that the U.S. Army Corps of Engineers conducted an environmental study and determined that Packery Channel will neither improve nor deteriorate the quality of the Laguna Madre. Mr. Mike Baker, 4641 Gayle Circle, said the position of the Coordinator of Volunteer Guides at Heritage Park should not be eliminated, as is recommended in the proposed budget. He discussed the importance of Heritage Park as a tourist attraction. Mr. Leon Perez, 904 Buford, discussed the recent crack down on prostitution. Mr. J.E. O'Brien, 4130 Pompano, questioned the purpose of holding a public hearing for the formation of the TIF district when he said the outcome is preordained. He said the TIF district downtown is $207,000 short on its debt service payment, which will come out of the General Fund. Mr. O'Brien also stated that there is a petition on file with 8,400 signatures against Packery Channel. Council Member Scott pointed out that the TIF district on North Padre Island does not include any liability on behalf of the city. Mr. Rolando Barrera, representing the Hispanic Contractors Association, said the construction contract for the new airport terminal is currently bid out as one project for $19.5 million. He said they would like that contract to be broken down by divisions so that local businesses can have the opportunity to bid on it. Council Member Gonzales asked how the airport terminal contract could be broken down. Mr. Garcia distributed a memo from Ms. Bonnie Allin, Aviation Director, and Mr. Angel Escobar, Director of Engineering Services, regarding minority/DBE participation at the airport. He pointed out that the airport construction is broken out into eight different projects (terminal, roadway and parking, terminal apron paving, airport wastewater lift station relocation, tower demolition and paving, tower asbestos, airfield electrical improvements, and service road). He said they were in the middle of the bid process at that time and about 93 proposals have been sent out to contractors who are interested in bidding on this project. He said they had the pre-bid conference that day and they will probably extend the due date two weeks to provide opportunities for people who are interested in submitting bids. Mr. Garcia went on to say that they looked at the possibility of breaking up the terminal contract into smaller contracts but there would be a six-month additional time period at approximately $100,000 a month. He pointed out that the terminal project is very complex because the construction needs to occur while the terminal is operating; consequently, they felt they needed the coordination of a single contractor to ensure that there is a minimum amount of disruption. Following additional discussion, Ms. Allin said they can ask the consultant to come back in two weeks with a response on whether or not the terminal contract can be broken up. Mr. Abel Alonzo, 1701 Thames, said that as a member of the Airport Board he thought there Minutes - Regular Council Meeting July 11, 2000 Page 9 was going to be minority participation on the airport contract. Mr. Garcia noted that the memo he distributed delineates minority participation levels far above the 10% minimum. Dr. Gonzales said they were merely asking whether or not the contract can be broken up. Mr. Garcia added that they barely have the money needed to build the airport project. Mr. Kinnison said this issue should have been brought up sooner in the process. Mr. Eloy Salazar said he did not know of any minority businesses that will be able to bid on a contract the size of the airport terminal contract. He said he disagreed with Mr. Garcia that there will be a cost overrun and that the project will have to be redesigned. He said he had previously been involved with construction projects that were broken up but had a project manager and were completed on time. Mayor Neal said he did not think it is a foregone conclusion that the terminal construction project will be awarded to a non -local company. Mr. Garcia said they need to build the best quality building at the lowest possible cost. Mayor Neal called for a brief recess. ********** ** A motion was made, seconded and passed to open the public hearing on Item 19, FY00-01 Operating and Capital Budgets. The Mayor then called for public comment on the budgets. Mr. William Rayburn suggested that the city require people to purchase a sales tax permit for $7.00 each in order to have a garage sale, flea market sale or similar sales. He said there are approximately 900 such sales per weekend in Corpus Christi. He said some surrounding communities require similar permits, which he explained. Ms. Anna Mercado -Flores read from a resolution passed by the Human Relations Commission on June 16, 2000 confirming the continued support of the commission, pursuant to the city's Code of Ordinances. Mr. Errol Summerlin, Executive Director of Coastal Bend Legal Services, said he has been a long-time member of the Human Relations Commission, which was created by the city in 1963 to advise the Council on what is needed to ameliorate racial tensions and to eliminate bigotry, prejudice and discrimination in the community. He said the department staff were added later to assist the commission in its work. He also described how the EEOC work share agreement and Fair Housing ordinance came about and the importance of adding personnel with the grant monies. Mr. Abel Alonzo described how the Human Relations Commission assisted him with a situation regarding his disability. He said the city should not rely on grants to fund the Human Relations Department; rather, it should come from the General Fund. Mr. Oscar Hinojosa, newly appointed chairman of the Human Relations Commission, said the department is very important; for example, it is investigating 169 EEO cases at this time. Minutes - Regular Council Meeting July 11, 2000 Page 10 Mr. R.J. Herschbach suggested that patrol cars carry fire extinguishers. Mr. Eric Felt commented on the proposed elimination of the Police Academy in the next budget, which personally impacts him. Mr. Garcia replied that staff feels the city can maintain the existing approved level of police officers through the next fiscal year without an academy. Mr. Jack Gordy said lights are needed for the flag pole at Fire Station #7. A member of the Library Board expressed concern about the proposed reductions at the libraries, which will impact the children's programs, the reference section, and other programs. Ms. Carol Matthews, another member of the Library Board, discussed the many private donations and grants that have been made over the years to the city's libraries, including the monies for the Janet Harte Library in Flour Bluff. Ms. Yvonne Kilstra said the proposed reductions in the Library budget will lessen access to information through books, periodicals, electronic information, and computer literacy training and will affect a broad range of citizens. Mr. Clif Moss said that if inflation is taken into account, the Library budget has continued to decrease. He said the city's per capita library expenses are less than those of other cities. He urged the Council to increase the Library's budget. Mr. Trian Serbu said that anything the Council can do to retain the youth park and recreation programs and even to increase them benefits the city in the long run. Ms. Kyra Shook said that $100,000 of the city's money is used to office two staff members at the Downtown Management District (DMD). Mr. Ken Griffin, Chairman of the DMD, said that in June the DMD completed its next petition cycle, which allows it to proceed for three more years. He described several projects undertaken by the DMD including lighting, trash receptacles, and banners and he commented on the DMD's involvement in downtown festivals and clean-up projects. Mr. J.E. O'Brien said there is no question that the DMD has accomplished many good things in the downtown area but rather it is a question of priority during this time of budget shortfalls. He discussed the valuation of downtown properties such as One Shoreline Plaza. Mr. Jose Marroquin said the city needs to prioritize and cut non-essential services. Mr. Alonzo spoke in support of the DMD, saying that people who participate in the downtown area contribute to the tax base. Ms. Gilna Nance, Director of the Volunteer Center, said they have had a contract with the Minutes - Regular Council Meeting July 11, 2000 Page 11 city since 1989 to take referrals from Municipal Court of people ordered to provide community service. She said they were asking for an additional $12,550 to hire a part-time employee to assist with the center's contract with the city. Mr. Rayburn urged the Council to maintain the twice -a -week garbage pick up. Mrs. Dorothy Spann commented on the proposed elimination of the Internal Audit Department and reductions in the Building Inspection Division. Ms. Cruz Colomo said the city needs to maintain twice -a -week garbage collection and she said the Council should not make cuts in police, fire, or Human Relations. She also suggested that the Council members auction off their Council chairs as a source of income. Mr. Robert McCarty, Treasurer of the Harbor Playhouse, said that while the arts seem like a luxury during difficult budget periods, companies take that into consideration when considering relocating. He said the Playhouse's roof needs to be replaced and they have had difficulty raising the funds because the city owns the building. Ms. Pamela Early, Executive Director of the Harbor Playhouse, thanked the city for funding the Playhouse in the past and she discussed the need for a new roof at the Playhouse. She said they believe that with some funding from the city for the roof, donors would be more willing to provide financial assistance. Mr. Robert Young, who owns and operates Frontier Surveying Company, discussed the importance of functional Geographical Information Systems and Municipal Information Systems. He said it is important for the city to coordinate GIS and MIS efforts with Texas A&M University - Corpus Christi, which is the only four-year university in the state to offer a degree in surveying. Mr. Gordy said the ordinance prohibiting drinking alcohol in city parks is not being enforced, which causes people to not care whether they litter in the parks. Mr. Marroquin said the city needs to maintain twice -a -week garbage collection because of the heat and humidity in this area. He said he did not object to cutting programs that do not bring money into the city. Mr. Isaac Valencia, President of the Police Officers Association, said they are concerned about the proposed cuts in the Police Department, including this year's and next year's police academy, 10 officers from the Crime Control and Prevention District, and other police personnel. Ms. Sandra Davis, a member of the Human Relations Commission, asked the Council to keep the Human Relations Department operational because it serves a vital purpose in the community. Mr. Jim Colter said he supports the Council in making difficult decisions while bringing a sense of reality to the city's finances. He said he also supports the upcoming bond issue and other Minutes - Regular Council Meeting July 11, 2000 Page 12 solutions to help the city grow. Mr. Carlos Torres, President of the Corpus Christi Firefighters Association, discussed the need for additional staff in the Fire Department. He asked the Council to reconsider the budget cuts to public safety. He also addressed the shortage of medical intensive care units, and he said that while units were fighting a brush fire in Flour Bluff recently, Padre Island was left unprotected. Responding to Mr. Torres' comments, Mr. Garcia said that while staff is proposing cuts in the Police and Fire Departments, he noted that the biggest expenditure increases are in those two budgets. Fire ChiefJ.J. Adame said he did not know what the coverage situation was on Padre Island during that brush fire but he would find out. Mr. Garcia explained that when an incident like that occurs, the coverage area shifts and no areas are left unprotected. A brief discussion ensued. Mayor Neal asked Mr. Garza to discuss the FY00-01 budget for the outside agencies (sixth budget presentation). Utilizing a computer presentation, Mr. Garza said staff was recommending funding the outside agencies in the following amounts: Volunteer Center, $8,450; Downtown Management District, $80,073; Corpus Christi Regional Economic Development Corporation, $375,000; MHMR Center, $54,000; Asian Cultures Museum, $15,000; South Texas Institute for the Arts -Art Museum, $200,000; South Texas Institute for the Arts -Education Center, $15,000; Harbor Playhouse, $31,500; Art Center of Corpus Christi, $15,000; arts projects, $126,500; Corpus Christi Symphony, $12,000; Jazz Festival, $7,500; Convention and Visitors Bureau, $2,088,464, for a total of $3,028,487. He said the funding is derived as follows: General Fund, $311,276; Combined Utilities, $206,247; and Hotel Occupancy Tax Fund, $2,510,964. Mayor Neal called for additional public comments on the outside agencies, Combined Utilities, and the other enterprise funds; there were no comments. The Mayor then referred to the FY00-01 capital improvement budget (which will be discussed in detail next week). He noted that the proposed capital budget includes the following amounts: Airport - $36 million; Park and Recreation - $4.6 million; Public Facilities - $5.7 million; Public Health and Safety - $6.6 million; Streets - $20.2 million; Stormwater - $15.2 million; Wastewater - $29.1 million; Water - $22.2 million; and Gas - $3.7 million, for a total of $143,347,400. There were no comments from the public about the capital budget. Council Member Colmenero made a motion to close the public hearing, seconded by Council Member Garrett, and passed. Mayor Neal called for a brief recess. * * * * * * * * * * * * * Mayor Neal called for consideration of the consent agenda (Items 4-16). City Secretary Chapa said that Item 9 was withdrawn by staff. Council members requested that Items 11 and 15 be withheld for discussion. There were no comments from the audience. Mr. Chapa polled the Council for their votes and the following were passed: Minutes - Regular Council Meeting July 11, 2000 Page 13 4. M2000-221 Motion approving a supply agreement with U.S. Filter Distribution Group, Corpus Christi, Texas for pre -fabricated manholes in accordance with Bid Invitation No. BI -0123-00 based on low bid for an estimated annual expenditure of $25,665.24. The term of the agreement will be for twelve months with option to extend for up to two additional twelve-month periods, subject to the approval of the supplier and the City Manager or his designee. Funds are budgeted in FY99-00 and requested for FY00-01 by the Wastewater Department. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 5. M2000-222 Motion approving a supply agreement with Haas -Anderson Corporation, Corpus Christi, Texas for approximately 960 tons of crushed limestone in accordance with Bid Invitation No. BI -0106-00 based on total low bid for an estimated annual expenditure of $18,751. 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. This material will be used by the Gas, Wastewater, and Water Departments. Funds have been budgeted in FY99-00 and requested for FY00-01 by the using departments. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 6. M2000-223 Motion approving a supply agreement with Bay Ltd., Corpus Christi, TX, for approximately 20,000 tons of hot mix asphalt in accordance with Bid Invitation No. BI -0144-00 based on low bid for an estimated annual expenditure of $549,600.The term of the agreement shall be for twelve months with an option to extend for up to two additional twelve month periods, subject to the approval of the suppliers and the City Manager or his designee. Funds have been budgeted by Street Services for FY99-00 and requested for FY00-01. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 7. M2000-224 Motion approving a supply agreement with Texas Battery Service, Corpus Christi, Texas for approximately 1,195 automotive, commercial and golf cart batteries in accordance with Bid Invitation No. BI -0135-00 for an estimated annual expenditure of $41,280.37 based on low bid. The term of the contract will be for twelve months, with an option to extend for two additional twelve-month periods, subject to the approval of the supplier and the City Minutes - Regular Council Meeting July 11, 2000 Page 14 Manager or his designee. Funds have been budgeted by the using departments for FY99-00 and requested for FY00-01. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 8.a. ORDINANCE NO. 024087 Ordinance appropriating $29,600 from the Reserve for Capital Outlay in the No. 5110 Maintenance Service Fund to purchase equipment; amending the FY99-00 Budget, adopted by Ordinance No. 023702, to increase appropriations by $29,600 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, J. Longoria, and Scott voting "Aye." 8.b. M2000-225 Motion approving the purchase of two trailer -mounted water pumps in accordance with Bid Invitation No. BI -0150-00, from Hertz Equipment Rental, Corpus Christi, Texas for a total of $29,600 based on low bid meeting specifications. These pumps are replacements. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 9. WITHDRAWN Motion approving the purchaac of thrcc ultra low voltam ...oaquito sem.. B&G 10. M2000-226 Motion approving the purchase of 2,557 automatic emergency alert radios from Hi -Go Public Alert Inc., Manor, Texas for $115,065 based on sole source. The radios are requested for the Local Emergency Planning Committee. Funding is available from a Texas Natural Resource Conservation Commission -SEP Grant. 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 July 11, 2000 Page 15 12. M2000-228 Motion authorizing the City Manager or his designee to execute a construction contract with Coastal Contractors for a total fee not to exceed $50,582 for the Power Street Storm Water Pumping Station Generator Replacement Project. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 13. M2000-229 Motion authorizing the City Manager or his designee to execute a bridge participation agreement with Premier Planning and Development Corporation for bridge construction on Guadalupe River Drive, Wood Estates Unit 3 in accordance with the Platting Ordinance, of which the City's share of the cost must not exceed $69,324.36. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 14.a. M2000-230 Motion approving the reimbursement application submitted by Bob Lacy Sr., owner and developer of Lot 1, Block 1, Bob Lacy's Business Park, for the installation of a 1,308 linear feet of 12 -inch PVC water grid main. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 14.b. ORDINANCE NO. 024088 Ordinance appropriating $43,037.20 in the 4030 Water Arterial Transmission and Grid Main Trust Fund to pay a reimbursement request by Bob Lacy Sr. for the installation of a 12 -inch PVC water grid main. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." 16. ORDINANCE NO. 024089 Authorizing the City Manager or his designee to execute approximately an eighteen month lease ending December 31, 2001 with Austin Express, Inc., for ticket counter space, office space, gate space, aircraft parking apron space, and joint use of the baggage claim space and other common areas at Corpus Christi International Airport in consideration of payment fees Minutes - Regular Council Meeting July 11, 2000 Page 16 that total approximately $4.59 per enplaned passenger and that are adjusted annually based on a fixed formula. The foregoing ordinance passed on second reading by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 11, purchase of radios. Responding to Council Member Garrett, Chief Adame said the radios will be assigned to the fire units that handle hazardous material response in and around the refineries. City Secretary Chapa polled the Council for their votes as follows: 11. M2000-227 Motion approving the purchase of ten (10) radios with chargers, belt clips and batteries from ComNet Ericsson, Ingleside, Texas for the total amount of $24,000. The award is based on sole source and will be used by the Fire Department's Local Emergency Planning Committee. Funds are provided through a Texas Natural Resource Conservation Commission -SEP Grant. The foregoing motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, and J. Longoria voting "Aye"; Scott absent. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 15, speed limit changes. Mr. Escobar and Mr. David Seiler, Traffic Engineer, described the four areas that are being recommended for speed limit changes and the rationale behind staff's recommendation. They also responded to Council members' questions. City Secretary Chapa polled the Council for their votes as follows: 15. FIRST READING ORDINANCE Amending Code of Ordinances Section 53-254, Schedule V, Increase of State Speed Limit in Certain Zones, by revising speed limits on parts of Cimmaron Boulevard, Northwest Boulevard, Leopard Street and McKinzie Road: a. On Cimmaron Boulevard, from 40 MPH to 35 MPH between Yorktown Boulevard and a point approximately 600 feet south of Bison Drive. b. On Northwest Boulevard (F.M. 624), revising the existing speed limits and revising current speed limit boundaries to the following: * 50 MPH to 45 MPH, from a point approximately 350 feet east of Riverside Drive and a point approximately 175 -feet east of River Run Drive. * 60 MPH, from a point approximately 30 feet east of East Riverview Drive to the west city limits. Minutes - Regular Council Meeting July 11, 2000 Page 17 c. On Leopard Street, from 35 MPH to 40 MPH between Rehfeld Road and a point 1,975 feet west of Loma Alta Drive. d. On McKinzie Road (F.M. 3386) increasing the existing speed limits and revising current speed limit boundaries to the following: * 35 MPH to 40 MPH, between the Interstate 37 North Frontage Road to a point approximately 400 feet south of the centerline of Leopard Street. * 40 MPH to 45 MPH, from a point approximately 400 feet south of the centerline of Leopard Street to a point approximately 620 feet north of Kingsbury Drive. * 40 MPH and 45 MPH to 50 MPH, from a point approximately 620 feet north of Kingsbury Drive to the south city limits; and providing for penalties. 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 opened discussion on Item 17, Texas Health Alert Network. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 17. RESOLUTION NO. 024090 Resolution authorizing the City Manager or his designee to execute a Collaborative Agreement with the Texas Association of Local Health Officials (TALHO)/Texas Department of Health (TDH) to establish a collaboration among local health departments in Texas for the purpose of applying for computer network funding from the Telecommunications Infrastructure Fund Board (TIFB) to establish the Texas Health Alert Network (HAN); providing that the collaborative agreement shall be in force through the period of the Telecommunications Infrastructure Fund Board Grant and six months thereafter. The foregoing resolution passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." ************* Mayor Neal opened discussion on Item 18, Convention and Visitors Bureau (CVB) budget. Mr. Garza referred to a memo in the City Manager's transmittal dated July 7, 2000 which responded to six budget issues raised by CVB officials during their quarterly update to the Council on June 20, 2000. During their presentation, the CVB officials requested an additional $185,000 over the contractual amount of $2,088,464. Mr. Garza said the first issue had to do with the increase in hotel/motel tax revenues. For Minutes - Regular Council Meeting July 11, 2000 Page 18 FY00-01, he said staff is projecting an increase of $101,818 (2%) over the FY99-00 estimated revenues. Regarding debt service for the convention center facilities, he said the debt service is funded from both hotel tax revenues and property tax revenues. Overall there is a decrease in the debt service requirement of $363,347, of which there is a decrease of $90,957 in the requirement from hotel tax revenues. Mr. Garza said staff is recommending maintaining the current level of funding for arts and cultural services in FY00-01. He said the increase of $66,098 over the current adopted budget is related to specific cultural services programs that had previously been funded from the General Fund and are now being funded out of hotel tax revenues. He also explained that the $6,980 increase in funding to the General Fund for administrative services is an expense recorded in the Visitors Facility Fund, which is a separate fund from the hotel tax revenues. The Acting Budget Director also discussed the funding structure for Memorial Coliseum and the Convention Center/Auditorium. He said the total operating shortfall for those entities is $2.37 million, which does reflect an increase in the contribution over the current year. He said several expenditures have been deferred but need to be included in next year's budget, which he explained. Council Member Kinnison made a motion to amend Item 18 to approve the $2,088,464 contractual formula amount for the CVB budget with the caveat that the Council was instructing the CVB to include the funding to the Hispanic Chamber of Commerce for the Latin marketing program in the amount of $54,000. Council Member John Longoria seconded the motion. Mayor Neal called for public comment. Mr. Abel Alonzo agreed that the CVB's funding should remain at the same level and should not be increased. Responding to Council Member Colmenero, Mr. Hal Peterson, Director of Convention Facilities, and Mr. Garza briefly explained the expenses for the coliseum. Mr. Bray noted that convention centers are authorized expenditures of the hotel tax under state law. Mr. Dave Pruett, Acting President of the Hotel/Motel/Condominium Association, suggested that the Council table this item so the association can continue to work with the City Manager's Office regarding use of the hotel tax by the city for convention facilities and cultural services. Mr. Garcia said the association has raised this issue before and the city's position is that every activity which receives hotel tax funds is specifically authorized by the legislation and is a legal expenditure. Mr. Colmenero said the CVB is not receiving enough funding to sufficiently promote tourism for Corpus Christi. In response to Council Member Gonzales, Mr. Garcia said the hotel tax revenues are approximately $5 million and the CVB receives approximately $2.08 million. Dr. Gonzales agreed that the hotel tax monies should be used for the CVB. Mr. Jim Snow, General Manager of the Omni Hotel and a member of the CVB Board, said Minutes - Regular Council Meeting July 11, 2000 Page 19 that Corpus Christi is behind other Texas cities in its funding for tourism promotion. He also commented on the CVB taking over the debt of the Columbus Fleet plaza. Dr. Gonzales commented on the funding that was provided to the Hispanic Chamber of Commerce last year for the Latin marketing program. Mr. Longoria pointed out that the CVB board opted not to fund the Latin marketing program next year. Mr. Manuel Ugues, President of the Hispanic Chamber of Commerce, said that last year the CVB had a four -pronged approach to the Latin marketing program --trade shows, tourism/leisure market, domestic market, and public relations. He said the proposed $54,000 would only address one of those components. Mr. Snow discussed the CVB's budget issues. Mr. Garcia and Mr. Garza responded to Council Member Garrett's questions regarding the summary of expenditures for the Hotel Occupancy Tax Fund. Council Member Betty Jean Longoria discussed the issues of the Latin marketing program and the need to maintain the convention center. City Secretary Chapa polled the Council on Mr. Kinnison's motion to amend the FY00-01 budget for the Convention and Visitors Bureau to include funding in the amount of $54,000 to continue the subcontract with the Hispanic Chamber of Commerce. The motion passed by the following vote: Neal, Colmenero, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye." Following additional discussion, Dr. Gonzales made a motion, seconded by Mr. Colmenero, to add $100,000 to the CVB budget for the Latin marketing program to be taken from the Convention Center/Auditorium/Coliseum line item. The motion failed to pass by the following vote: Colmenero and Gonzales voting "Aye"; Neal, Cooper, Garrett, Kinnison, B. Longoria, J. Longoria, and Scott voting "No." Mr. Chapa then polled the Council for their votes on Item 18 as follows: 18. RESOLUTION NO. 024091 Resolution approving the FY00-01 Budget for the Convention and Visitors Bureau. The foregoing resolution passed, as amended, by the following vote: Neal, Cooper, Garrett, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Colmenero voting "No." * * * * * * * * * * * * * A motion was made, seconded and passed to open the public hearing on Item 20, zoning text amendments. There were no comments from the audience. Mr. Scott made a motion to close the public hearing, seconded by Ms. Cooper, and passed. City Secretary Chapa polled the Council for their votes as follows: 20. FIRST READING ORDINANCE Amending the Zoning Ordinance by revising Article 12A. `B -1A" Neighborhood Business Minutes - Regular Council Meeting July 11, 2000 Page 20 District by amending Section 12A-7 supplementary height and area regulations by requiring 100 feet frontage for a "B -1A" District; by amending Article 24. height, area and bulk requirements by amending the right-of-way for the `B -1A" District by changing minimum lot width and area to none. The foregoing ordinance passed on first reading by the following vote: Neal, Colmenero, Cooper, Gonzales, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Garrett absent. ************* A motion was made, seconded and passed to open the public hearing on Item 21, zoning text amendments. There were no comments from the audience. Ms. Cooper made a motion to close the public hearing, seconded by Mr. Longoria, and passed. City Secretary Chapa polled the Council for their votes as follows: 21. FIRST READING ORDINANCE Amending the Zoning Ordinance by revising Article 31 newly annexed territory by amending Section 31-1 by requiring notice by publication before the 15th day before the date of hearing. The foregoing ordinance passed on first reading by the following vote: Neal, Cooper, Kinnison, J. Longoria, and Scott voting "Aye"; Colmenero, Garrett, Gonzales, and B. Longoria absent. Mayor Neal called for a brief recess. * * * * * * * * * * * * * City Manager Garcia said staff would continue with the budget presentations on the day's agenda. The seventh budget presentation was made by Mr. Ron Massey, Assistant City Manager of Public Works and Utilities, and Mr. Ed Garafia, Water Superintendent. Mr. Massey gave an update on the Lake Texana water draw and the reengineering efforts of the Water and Wastewater departments. He said the Water Department has reduced its operation and maintenance (O&M) costs by 16% for FY00-01 and Wastewater has reduced them by 5% (with a 16% reduction in FY99-00). Mr. Massey also discussed staffing levels: the Water Department eliminated 37 FTE's and Wastewater eliminated 32 FTE's (all vacant positions). He said their focus was to precisely define service levels and set the stage to develop employee incentive/pay programs. He said the reductions reflect a new understanding of competitive business practices and are an important first step in identifying operation and maintenance cost-saving opportunities. Mr. Massey added that further reductions are expected as continuous improvements are made to operating efficiencies and maintenance performances. Minutes - Regular Council Meeting July 11, 2000 Page 21 Mr. Massey said a "guiding coalition" has been established, which is comprised of a cross- section of Water and Wastewater employees. Currently the coalition is working on communication issues, employee compensation issues, and a formal "competitive businesses action plan." He added that in the fall staff will present to the Council a comprehensive set of service levels and performance standards and a formal competitive action plan that projects costs of operations for future years and incorporates future savings from capital projects. He said that plan will serve as a service agreement to deliver competitive water utility services to the city at specific service levels and defined costs. Mayor Neal introduced Judge Jeff Moseley, Executive Director of the Texas Department of Economic Development. Judge Moseley briefly addressed the Council, saying he serves with Mayor Neal on the Military Planning Commission, and he was in the city for a meeting the next day. Mr. Garafia then gave a computer presentation on the proposed FY00-01 budget for the Water Department. He said the Water Fund supports the ACM for Public Utilities Office, Environmental Compliance Office, Stormwater, and Water. The FY99-00 budget for the Water Department is $52.85 million and the proposed budget is $51.86 million. He said the Water Department supplies water for municipal and industrial use in a seven -county service area. Mr. Garafia then discussed various expenditures in the proposed budget, noting the reduction in O&M costs and the increase in allocations and debt service costs. The summary of reductions includes the following: 37 positions - $937,000; professional services - $184,441; and advertising and capital outlay - $2.93 million, for a total of $3.96 million. Mr. Garafia said the Water Department's major programs are: Wesley Seale Dam spillway rehabilitation project; O.N. Stevens Water Treatment Plant modernization; alternate power supply project; Southside transmission main project and pumping station; Lake Texana pipeline project; and Up River Road transmission main project. Mr. Garcia and Mr. Garafia then responded to Council members' questions. * * * * * * * * * * * * * The eighth budget presentation was made by Mr. Foster Crowell, Wastewater Superintendent. He said the department's objectives are to provide customer service, protect the environment, and maintain the city's infrastructure. He said those service levels include the following: initial response time of less than four hours to all calls received between 7 a.m. and 11 p.m. 365 days per year; clearing services up to the property line at no charge to customers; maintaining an aggressive odor control program; and providing high quality effluent for beneficial reuse and for release to the bays and estuaries. Mr. Crowell also discussed the proposed FY00-01 budget for the Wastewater Department, which totals $26.81 million (down from $27.71 million for FY99-00). He described expenditure trends from FY99-00 to FY00-01, including a $2.5 million reduction in O&M costs. He noted that 32 vacant positions were eliminated, which represents the lowest staffing levels in a decade (while maintaining service levels). He added that negative ending fund balances have been eliminated. Mr. Crowell explained that O&M costs have been reduced through improved business Minutes - Regular Council Meeting July 11, 2000 Page 22 practices, such as realigning the organization; selective outsourcing; treatment plant process improvements; and increased power efficiency. Currently in the development stage are incentive and pay programs for employees and increased automation. He added that the Whitecap Plant has been completed, a pump -out station at the Yacht Club was installed, and the Greenwood Plant expansion continues. He noted that there is no rate increase in the proposed budget. * * * * * * * * * * * * * The ninth budget presentation was made by Ms. Debbie Marroquin, Gas Superintendent. She said the proposed FY00-01 Gas Department budget, which is $26.24 million, emphasizes the maintenance and construction of the infrastructure. She said the proposed budget shows expenditures higher than revenues by $642,611, or 2.5%. She said revenues consist of the cost of service ($12.09 million) and the cost of gas ($13.5 million), which she explained. Expenditures consist of: allocations - $4.46 million; salaries - $4.26 million; operations - $3.99 million; and natural gas purchases - $13.5 million. She said that 151 employees serve 56,021 customers, which is a ratio of 371 to 1. She said currently there are 1,232 total miles of gas mains. Ms. Marroquin then discussed construction projects to enhance the infrastructure and the marketing programs (builder's incentive program, revised rebate program, and compressed natural gas fuel credits). The major system enhancements include: compression fitting removal program; pipe subdivisions; relocation of lines; and improvements such as the Columbia ditch project and the transmission line extension. Other programs discussed by Ms. Marroquin were Operation Heat Help and appliance light -ups. She said they intend to improve efficiency by repairing residential gas meters; surveying gas leaks; and reviewing the leak crew schedule. The Gas Superintendent said the summary of reductions are: Clean Cities program (excluding salaries) - $76,395; staffing reductions due to attrition - $163,673; and reserve appropriations - $100,000, for a total of $340,068. She said the budget includes a 2% rate increase, which equates to 25 cents per month. * * * * * * * * * * * * * The tenth budget presentation was made by Ms. Valerie Gray, Stormwater Superintendent. She said the department's mission is to operate and maintain a drainage system that will meet the needs of the residents and improve the environment through the quality of stormwater runoff. She said the proposed FY00-01 budget is $8.76 million, which is approximately a 17.5% increase from the adopted FY99-00 budget. She said that is mostly due to increased allocated costs and the addition of the citywide street sweeping service and improved right-of-way mowing. In addition to those two services, the other contract programs are minor ditch grading, inlet cleaning, and household hazardous waste disposal. Ms. Gray said the department's plans include obtaining a new permit and continuing the implementation of the existing programs. Educational programs include: public outreach education; public service announcements; inlet stenciling; public interaction; demonstration projects; public presentations; and distribution materials. She also discussed the department's capital outlay, which consists of pump station improvements ($260,000) and vehicular equipment ($762,000). Minutes - Regular Council Meeting July 11, 2000 Page 23 The eleventh budget presentation was made by Mr. Ogilvie Gericke, MIS Director. He said the proposed FY00-01 budget is $4.77 million with 47 FTE's. He said the department's Largest cost category is salaries and retirement at $2.13 million. The other major categories are overtime, operations, contractual services, capital equipment, insurance allocations, other service allocations, debt service, and lease payments. He said there are no reductions proposed in this budget. Mr. Gericke said operational changes include the following: consolidating the Street Services' LAN/WAN activity with MIS; adding the management of the telephone systems at the Health Department and Central Library; transferring GIS management and organizational deployment from Engineering to MIS; and transferring PeopleSoft applications specialists from Finance to MIS. He then discussed the technical, telephone, and operations services provided by the MIS Department, which covers a wide variety of computer hardware and software applications and technical support. He also discussed the importance of the GIS program and base map as well as the process involved in developing and improving those systems. * * * * * * * * * * * * * The twelfth budget presentation was made by Mr. Pat Alba, Director of Risk Management. He explained the recent reorganization of three funds: the Internal Service Insurance Fund resulted from the merger of the Internal Service Fund for Self -Insurance, the Internal Service Fund for Group Health Insurance, and the General Fund for Risk Management Administration. He said the fund's proposed budget for FY00-01 is $26.26 million, consisting of Employee Benefits ($16.65 million), Liability ($8.99 million), and Administration ($617,736), all three of which he briefly reviewed. Mr. Alba said that when staff prepared the FY00-O 1 budget in February, they anticipated that expenditures would be $14.36 million. However, now that they have experienced several months' worth of expenditures, staff is now projecting that the expenditures for next year will be $14.73 million, a difference of $371,561, which would result in a negative fund balance. Mr. Alba said that consequently, staff proposed several options to the Council's Administrative Analysis Committee. He said staff is proposing to increase the civilian employee's contribution for the "Employee Only" insurance premium from 46 cents biweekly to $10 biweekly. He said they are also recommending the following insurance plan design changes for civilian personnel: increasing the copay for lab visits from $3 to $10; increasing the copay for doctor's office x-rays from $5 to $10; and establishing a $200 deductible for outpatient surgery at the hospital. He said they are also negotiating with pharmacies to try to establish a single -vendor pharmacy, which should also reduce costs. City Manager Garcia said that when the Council discussed this issue in February 2000, they considered several ways to reduce costs, including the use of a formulary or single vendor for prescriptions. The Council decided at that time among other things to increase the copays for prescriptions. Mr. Alba then discussed what the annual premium revenues would be under four different scenarios: Option 1 - increasing the premium for employees with single coverage to $10 biweekly, which would result in revenues of $222,492; Option 2 - increasing the premium for employees with Minutes - Regular Council Meeting July 11, 2000 Page 24 single coverage to $5 biweekly for $105,882; Option 3 - increasing the premium for employees with dependents to $10 biweekly for $564,291; and Option 4 - increasing the premium for employees with dependents to $5 biweekly for $268,541. Mayor Neal said he could not understand how staff could have miscalculated the projections since they had just made changes to the insurance program in February 2000. He said the Council was told in February that staff's projections would be good until August 2001. Mr. Alba said the Council decided to make the changes to the prescription program because staff had identified a problem with that program. He said the direction of the Council at that time was to continue to monitor the expenditures on a monthly basis and to come back to the Council with any recommended changes to the plan if they were needed. He added that the Administrative Analysis Committee has been meeting monthly to discuss insurance issues. Responding to Council Member Scott, Mr. Garza said that in February two changes were implemented --the increased copay for prescriptions and additional discounts. He said those changes were expected to result in $125,000 of reduced expenditures per month. He said the 10% increase projected for the following year was based on those reduced expenditures, which unfortunately did not materialize. Mr. Alba explained why the expenditure reductions did not occur. He discussed the importance of having 12 months of reliable data with which to make accurate projections. Council members discussed the various options, and Mr. Garcia pointed out that any changes made would be included in the FY00-01 budget, effective August 1, 2000. Council Member Kinnison expressed concern that staff's recommendation of Option 1 would not provide sufficient revenues, particularly if health care costs and utilization continue to increase. Council Member Betty Jean Longoria said she agreed with Mr. Kinnison. Mr. Kinnison said the Administrative Analysis Committee was in agreement with staff's recommendation to reduce expenditures by making changes in the health care plan as previously discussed (copay changes). He then made a motion to increase the copays as discussed and to adopt Option 3 - increasing the premium for employees with dependents to $10 biweekly. The motion was seconded and it passed by the following vote: Neal, Colmenero, Cooper, Kinnison, B. Longoria, J. Longoria, and Scott voting "Aye"; Garrett and Gonzales voting "No." Following a discussion, there was consensus of the Council to direct staff to prepare budget options relating to the following departments (as previously discussed): Human Relations, Human Resources, Police, Libraries, Solid Waste, Parks, and Housing and Community Development. Mr. Garcia said that the first reading of the budget is scheduled for next week. Mayor Neal called for Council concerns and reports. Mr. Garrett asked about the irrigation system on Park Road 22 on Padre Island, which Mr. Tony Cisneros, Director of Park and Recreation, briefly explained. There being no further business to come before the Council, Mayor Neal adjourned the Council meeting at 8:35 p.m. on July 11, 2000.