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.