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HomeMy WebLinkAboutMinutes City Council - 06/19/2001I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Regular Council Meeting of the City of Corpus Christi of June 19, 2001, which were approved by the City Council on June 26, 2001. WITNESSETH MY HAND AND SEAL, this 26th day of June, 2001. Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting June 19, 2001 12:00 p.m. PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Henry Garrett* Council Members: Brent Chesney Javier D. Colmenero Bill Kelly* Rex A. Kinnison John Longoria* Jesse Noyola Mark Scott* City Staff: City Manager David R. Garcia Deputy City Manager George Noe City Attorney James R. Bray Jr. City Secretary Armando Chapa Assistant City Secretary Mary Juarez 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. Ray Kiser, First United Methodist Church, and the Pledge of Allegiance to the United States flag was led by Council Member Chesney. Assistant City Secretary Juarez called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Neal referred to the minutes of the regular Council meeting of June 12, 2001. He noted that staff had amended page 9 to state that the net assessed taxable value for FY01-02 is proposed to be $7.84 billion. Council Member Chesney made a motion to approve the minutes as amended, seconded by Council Member Colmenero, and passed (Garrett, Kelly, Longoria, and Scott absent). Mayor Neal announced the executive sessions, pursuant to Texas Government Code Section 551.071 for legal advice regarding the following: (Item 2.a.) claim of Rosario Prado, Individually and on behalf of the estate of Robert Prado, deceased, with possible discussion and action related thereto in open session; (Item 2.b.) Priscilla G. Leal v. the City of Corpus Christi, et al No. 01-0253- E, l48`h District Court, Nueces County, Texas, with possible discussion and action related thereto in open session; and (Item 2.c.) advertising on bus benches within City rights-of-way, with possible discussion and action related thereto in open session. The Council went into executive session. *Council Members Garrett, Kelly, Longoria, and Scott were attending a Municipal Court Committee meeting and arrived at 12:04 p.m. The Council returned from executive session. (A motion was made on Item 2. b.; see page 5 of the minutes.) * * * * * * * * * * * * * Mayor Neal called for consideration of the consent agenda (Items 3-8.b., Item 8.c. having been withdrawn). Council members requested that Items 3, 6, 8.a. and 8.b. be discussed. There were no comments from the audience. City Secretary Chapa polled the Council for their votes: T Minutes - Regular Council Meeting June 19, 2001 Page 2 4. ORDINANCE NO. 024477 Ordinance abandoning and vacating a 1,173 -square foot portion, of a 10 -foot wide utility easement out of Lot 9, Arbor Terrace Subdivision; requiring the owner, Mr. Gregg Kupec, to comply with the specified conditions and replat the property within 180 days at owner's expense. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 5. M2001-228 Motion authorizing the City Manager or his designee to submit a grant application in the amount of $25,000 to the State of Texas Comptroller of Public Accounts for tobacco compliance and prevention activities. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 7.a. M2001-229 Motion authorizing the City Manager or his designee to accept funding in the amount of $5,884 from the Texas Department of Health, Toxic Substances Control Division, Hazard Communications Branch for the Corpus Christi - Nueces County Local Emergency Planning Committee to conduct planning and response activities under the Emergency Planning and Community Right -to -Know Act. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 7.b. ORDINANCE NO. 024479 Ordinance appropriating $5,884 from the Texas Department of Health, Toxic Substances Control Division, Hazard Communications Branch in the No. 1050 FederaUState Grants Fund for the Corpus Christi - Nueces County Local Emergency Planning Committee to conduct planning and response activities under the Emergency Planning and Community Right -to -Know Act. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 8.c. WITHDRAWN Minutes - Regular Council Meeting June 19, 2001 Page 3 Tcxa3 Ce..cral Land Office Coastal Coordinatioi, C—etn.cil for a Bayfrei.t Redevelopi..ent Study in the amount of $50,000, with a $33,333 cash match and a for a total projcct coat of $83,333. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 3, Health Department roof repairs. Mr. Kevin Stowers, Acting Assistant Director of Engineering Services, said this is one of the first architectural projects to be addressed under the Bond 2000 program. He said staff received three bids and the low qualified bid was submitted by Haeber Roofing of Corpus Christi in the amount of $141,214. He said as a result of the favorable bids, after award of the contract staff would like to repair some of the water infiltration damage in the building. Mr. Stowers said the three bidders were local companies. Responding to Council Members Scott and Colmenero, Mr. Stowers said the project is expected to be completed by November 2001. He added that the water infiltration repair will not exceed the original budget for the project. City Secretary Chapa polled the Council for their votes: 3. M2001-227 Motion authorizing the City Manager or his designee to execute a construction contract with Haeber Roofmg, Corpus Christi, Texas, for a total fee not to exceed $141,214 for the Health Department Roof Repairs (Bond Issue Project Al). The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." ************ Mayor Neal opened discussion on Item 6, master advance funding agreement with the Texas Department of Transportation (TXDOT). In reply to Council Member Scott, Mr. Ron Massey, Assistant City Manager for Public Works and Utilities, said the bid let date for the Park Road 22 (JFK Causeway) project is September 2001. Mr. Scott asked staff to contact him to answer additional questions. City Secretary Chapa polled the Council for their votes as follows: 6. RESOLUTION NO, 024478 Resolution authorizing the City Manager or his designee to execute a Master Agreement Governing Local Transportation Project Advance Funding Agreements with the Texas Department of Transportation. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Mayor Neal opened discussion on Items 8.a. and 8.b., hike and bike trail. Council Member Minutes - Regular Council Meeting June 19, 2001 Page 4 Chesney said a news report incorrectly stated that this project entailed money given by the Council when in fact it is a grant application. Assistant City Manager Tom Utter, Office of Intergovernmental Relations, confirmed that it is a grant application to the Coastal Coordination Council under the Coastal Management Program. He said the local match for each project in the total amount of $80,000 would come from the Padre Isles Property Owners Association (PIPOA) and Padre Island Business Association. Mr. Utter said the city has received similar grants in the past. He said in October construction will begin on a hike and bike trail on Whitecap Boulevard from the Intracoastal Canal to South Padre Island Drive. He said these two proposed projects will be constructed on Gypsy Street and Encantada Avenue and tie into the Whitecap project. Council Member Noyola asked about the PIPOA's contribution. Mr. Utter said they will provide $40,000 for each project as well as in-kind services. He also further described the projects in response to Council Member Colmenero. Council Member Longoria asked about the grant criteria. Mr. Utter said the projects to be funded have to be located within the county and have direct impact on a coastal area, which he explained. Mr. Longoria suggested that a study be conducted on the pedestrian flow on Corpus Christi Beach and in the downtown area. Mr. Utter said the Corpus Christi Beach Association is considering a boardwalk concept. City Secretary Chapa polled the Council for their votes as follows: 8.a. RESOLUTION NO. 024480 Resolution authorizing the City Manager or his designee to submit a grant application to the Texas General Land Office - Coastal Coordination Council for in the amount of $60,000 for a Hike and Bike Trail on Gypsy Street, with a $40,000 match from Padre Island Property Owners Association. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 8.b. RESOLUTION NO. 024481 Resolution authorizing the City Manager or his designee to submit a grant application to the Texas General Land Office - Coastal Coordination Council for a Hike and Bike Trail on Encantada Avenue in the amount $60,000, with a $40,000 match from Padre Island Property Owners Association. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal referred to the presentation on the day's agenda (Item 10) regarding the July 4`11 Big Bang Celebration. Ms. Diana Garza, Management Assistant to the Mayor, introduced Mr. Mike Minutes - Regular Council Meeting June 19, 2001 Page 5 Lind, co-chairman of Bayfest Inc. Mr. Lind noted some of the events that will occur on July 4th, including a bayfront run, parade, patriotic ceremony, performance by the U.S. Air Force "Band of the West," "Stars and Stripes Aboard the U.S.S. Lexington," picnic at the Texas State Aquarium, and a fireworks display along the bayfront. The following representatives also further discussed the July 4th events: Joe Ochoa and Vicky Lewis, Buccaneer Commission; Daiquiri Richard, Beautify Corpus Christi Association; Rocco Montesano, U.S.S. Lexington; Crystal Mead and Monica de la Garza, Texas State Aquarium; and Debbie Lindsey -Opel, H -E -B Grocery Company. Ms. Garza said that in addition to those organizations, others involved in the celebration include the Office of the Mayor, Park and Recreation, Solid Waste, Coliseum, Marina, Street Department, Traffic Engineering, Police, Fire, Corpus Christi Veterans Band, Mayor's Committee on Veterans Affairs, Corpus Christi Roadrunners, Z-95 Radio, Corpus Christi Chamber of Commerce, Downtown Management District, Freelance Creative, RTA, Valero, and Whataburger. ************* Returning to Item 2.b., Mayor Neal made the following motion, which was seconded by Council Member Kinnison and passed: 2.b. M2001-226 Motion authorizing the City Manager to employ Robert Nichols, Bracewell & Patterson law firm, Corpus Christi, to represent the defendants in Priscilla G. Leal v. the City of Corpus Christi, No. C-01-247, United States District Court, Southern District of Texas, Corpus Christi Division, at the rate of $150 per hour, subject to appropriation and certification of funds. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 11, budget for the Corpus Christi Crime Control and Prevention District. Mr. Leon Loeb, President of the District Board, explained that the district's original budget projections for FY00-01 were based on five months of data (August through December). The revised estimates are now based on actual expenditures for the first 10 months of the fiscal year and the ending balance for FY00-01 has been decreased by $270,822. Mr. Loeb said the FY01-02 proposed district budget has also been modified to include the following: an increase of $166,599; a 3% cost -of -living increase for civilian employees totaling $47,615; revised salary figures for the legal advisor and career ladder increases totaling $9,984; an increase in street lighting of $15,000; election costs of $100,000; and the deletion of the encumbrance for the biannual district evaluation for $6,000 (which will be paid in FY00-01). Minutes - Regular Council Meeting June 19, 2001 Page 6 Council Member Chesney asked Mr. Loeb's opinion and that of the board regarding the DARE program. Mr. Loeb replied that he agrees with the suggestion of Cmdr. Bryan Smith, Coordinator of the district, that they move the DARE program into the middle schools and incorporate some DARE officers into the directed patrol program. He commended Cmdr. Smith for his efforts as coordinator. Mr. Loeb described the use of funds under the miscellaneous line item. There were no comments from the audience. City Secretary Chapa polled the Council as follows: 11. RESOLUTION NO. 024483 Resolution approving the FY2001-2002 Budget for the Corpus Christi Crime Control and Prevention District. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal called for a brief recess. Upon reconvening, he referred to Item 9. A motion was made, seconded and passed to open the public hearing on the following zoning case: 9. Case No. 0501-02. Dunhill Enterprises. LLC: A change of zoning from an "A-1" Apartment House District to "R -1B" One -family Dwelling District on Flour Bluff and Encinal Farm and Garden Tracts, Section 52, Lot 15, located on the north side of Yorktown Boulevard, approximately 650 feet east of Waldron Road. Mr. Michael Gunning, Director of Planning and Development, referred to a memo in the Council's packet which explained that the applicants, James and Regina Stevenson, submitted a written request asking the City Council to approve an "RE" Residential -Estate District in lieu of the "R -1B" One -Family Dwelling District they had originally requested. He said on the advice of their banker, the Stevensons are now proposing to develop a large lot single-family subdivision consisting of 15 residences instead of the original 75 residences under "R -1B." Mr. Gunning said staff feels the "RE" District is actually more advantageous in that the large - acre lots would provide more of a buffer between the "B-3" area and the subdivision. He said there were no notices in opposition to the proposed zoning change and there were two notices in favor as well as a favorable response from the Navy. Mr. Gunning described the Council's options. Mayor Neal asked about possible drainage problems in that area. Mr. Gunning said he has not had the Engineering Department review that issue yet, but the property owner will be required to submit a plat to the Engineering Department demonstrating how he plans to drain the property. The Mayor added that staff also needs to bring the Council a stormwater master plan. He then called for public comment. Mr. John Bell, a local attorney representing the Stevensons, said they intended to be at the Minutes - Regular Council Meeting June 19, 2001 Page 7 meeting but business obligations prevented that. Mr. Bell said "RE" zoning is the least dense; consequently, the demands on utilities is far less than the existing apartment zoning or the initially proposed "R -1B" zoning. Mr. Longoria made a motion to close the public hearing, seconded by Mr. Colmenero, and passed. Mr. Kelly made a motion, seconded by Mr. Scott, to amend Item 9 to rezone the property from "A-1" Apartment House District to "RE" Residential -Estate District. A voice vote was called and the motion passed unanimously. Mr. Chapa polled the Council for their votes as follows: 9. ORDINANCE NO. 024482 Amending the Zoning Ordinance upon application by Dunhill Enterprises, L.L.C., by changing the Zoning Map in reference to Lot 15, Section 52, Flour Bluff and Encinal Farm and Garden Tracts, from "A-1" Apartment House District to "RE" Residential -Estate District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. An emergency was declared and the foregoing ordinance passed, as amended: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal referred to Item 12 regarding several discussion items on the FY2001-02 proposed operating budget. Mr. Mark McDaniel, Director of Management and Budget, first discussed the enterprise funds, which consist of Water, Wastewater, Gas, Airport, Ambulance, Marina, and Golf Centers. Mr. McDaniel said the re-engineering efforts in the Water and Wastewater departments have resulted in the following: total personnel services expenditures are programmed to increase by only $49,082 (including salaries/wages, overtime, retirement and group health); elimination of 42 positions (24 in Water and 18 in Wastewater); annualized expenditure savings of $927,800; salaries are budgeted at the 98% level and valued at $363,436 less; and only one new position is being recommended (a water resource planner). The Budget Director said that in the Utility Fund overall, there is a $3.9 million increase in debt service for utility projects, and a total of $12 million of the unreserved fund balance will be used for "pay-as-you-go" financing of currently approved capital projects (as per the second year of the five-year capital improvement program). He added that the FY01-02 proposed budget includes a 2% rate increase for all the utilities. City Manager Garcia noted that beginning in FY94-95, the Council adopted a policy of 6% utility rate increases each year. However, in FY99-00 the gas rate increase was only 2% while the others remained at 6%, and in FY00-01 there were no rate increases in water and wastewater and only a 2% increase in gas. He said staff feels they will have to resume the 6% rate increase after next Minutes - Regular Council Meeting June 19, 2001 Page 8 fiscal year and continue it for several years in order to avoid major rate increases due to substantial capital expenditures programmed in the future. Mr. McDaniel illustrated the impact of the proposed 2% rate increases on the average residential customer, which would equate to $1.05 per month. In the Water Fund, Mr. McDaniel said staff is proposing total expenditures of $70.39 million including $5 million for pay-as-you-go CIP projects. He said the 2% rate increase for the cost of service will generate an additional $700,000 to support capital projects. He said the budget also includes $1.5 million for water supply development, including the addition of the water resources planner and studies/professional services for possible desalination and Garwood pipeline projects. In the Gas Fund, staff is budgeting total expenditures of $42.97 million including $2 million for CIP projects and an additional $275,000 generated from the 2% rate increase. Mr. McDaniel said the price of natural gas is projected at $6.94/mcf (versus the prior year adopted budget of $3.42/mcf). The Wastewater Fund includes total expenditures of $33.24 million including $5 million for pay-as- you-go CIP projects and an additional $593,000 for capital projects from the 2% rate increase. Responding to Council Member Noyola, Mr. McDaniel reiterated the need for the 2% utility rate increases proposed in FY01-02 to fund the debt that the city has begun to incur for all the projects that are currently underway as well as future projects. Mr. Garcia acknowledged that the 6% rate increases are not mandatory, but if the Council does not implement them the effect is compounded and an even higher increase will be necessary in the future to fund the debt for the capital projects. Council Member Scott asked about the Choke Canyon Fund. Mr. Massey pointed out that the U.S. Bureau of Reclamation does not have the authority to grant the city any water rights, which come from the state. He said the water rights are based on the droughts of record. He said under the calculations of the 1960s drought of record, the yield of Choke Canyon Reservoir was estimated to be higher than it is actually. Mr. Massey and Mr. Jorge Cruz-Aedo, Director of Financial Services, further explained the debt payments for that fund. Responding to Council Member Kelly, Mr. Ed Garafia, Water Superintendent, said the Southside Transmission Main is estimated to cost $50 million. Mr. Garcia said staff tries to anticipate when the city will actually have to expend the money for capital projects and balance out pay-as-you-go funding with debt funding. He said staff will review the rate model with the Council. Council Member Longoria asked about the proposed $1.5 million for water supply development. Mr. Garcia said the city needs to develop a more sophisticated projecting and planning capacity, particularly in the Water Department. He said Corpus Christi is one of the largest cities in the state without any water planning capacity. Mr. Garcia and Mr. Garana further responded to specific questions from Mr. Longoria. Council Member Kinnison asked if the city currently has an adopted long-term water plan. Mr. Massey replied that the city does not and that is one of the issues to be addressed now that the Senate Bill 1 plan has been approved for the region. Mr. Garcia said the elements required in Senate Minutes - Regular Council Meeting June 19, 2001 Page 9 Bill 1 are not adequate for this area. He said the city needs a comprehensive plan that analyzes the city's existing water inventories; considers all the available options; balances that against the area's population and industrial demands; projects the needs 20-80 years in the future; and sets critical time lines. Mr. Kinnison said he agrees that the city needs to plan for its future water needs, including continuing to cooperate with regional entities, while at the same time not duplicating efforts. Responding to Council Member Colmenero, Mr. McDaniel and Mr. Massey discussed the CIP program, which will be discussed in more detail in a few months. Mr. Garana also commented that staff plans to bring back a very comprehensive water plan in the future. Mr. Garcia said there is extensive information available from the Nueces River Authority but there is very little information available exclusively about the City of Corpus Christi. Council Member Chesney asked about desalination projects. Mr. Massey said any possible desalination projects are preliminary at this point. He said the technology needs to be demonstrated in a production base and he added that it would be advantageous for the city to work with the state of Texas on that issue. Mayor Neal noted that the city's combined system reservoir capacity is currently at 35% and as a result the city's water plans need to be expedited. Continuing with his computer presentation, Mr. McDaniel discussed the proposed FY01-02 Airport Fund, which includes total revenue of $6.27 million and total expenditures of $6.38 million. He said there is an increase in expenditures of $365,854 due primarily to significant increases in power costs. However, revenues are projected to increase due to new oil and gas leases and property rentals and other revenues should increase upon completion of the new terminal in Spring 2002. Mr. Dave Hamrick, Acting Aviation Director, replied to specific questions about the proposed budget. Referring to the Gas Fund, Mr. Kinnison requested a report about performance measures for the Gas Department's marketing plan. Mr. McDaniel noted that the Ambulance Fund was discussed last week during the General Fund overview. Responding to Council Member Garrett, Mr. John Murray, Director of EMS, explained that the ambulance service was established in 1973 as a joint effort between the city and the Nueces County Hospital District. He said the district stopped its financial contributions to the ambulance service after FY87-88. In 1993 a contract was drawn up between Corpus Christi and Nueces County which stated that the county would reimburse the city for a percentage of the total number of calls made into the unincorporated areas of Nueces County. He said the city's call volume has decreased in those areas for several reasons. Mr. McDaniel also discussed the Marina Fund, which has total revenues and expenditures of about $1.09 million. He said bayfront revenues are projected to increase after the opening of the new restaurant in the marina this month, which calls for 1.5% of gross receipts He said the proposed 5% increase in slip rentals will generate additional revenue of $34,520. The Golf Centers Fund includes total revenues and expenditures of $2.3 million Mr. McDaniel noted that the revenue stream has decreased by 13% primarily due to fewer rounds being played at the city's two golf courses. Minutes - Regular Council Meeting June 19, 2001 Page 10 Mr. Tony Cisneros, Director of Park and Recreation, used a computer presentation to discuss options for a third golf facility. He described the history of the effort to establish a third facility beginning in May 1999 when the Council identified that need. He said the city did not receive any responses to a request for proposals (RFP) it sent out for private development of a golf course adjacent to the J.C. Elliott Landfill. Staff then developed the following options which were presented to the Council: light the executive nine -hole course at the Gabe Lozano Sr. Golf Center - $500,000; build an additional nine holes at Oso Beach Municipal Golf Course - $1.5 million; build a third facility at the Cayo del Oso city property - $5.6 million; purchase an existing daily fee golf facility if offered for sale - approximately $4 million to $6 million; build a third facility at a yet -to -be purchased location - $7.5 million; wait and build a course at the landfill after it closes - $250,000 (city's portion of a joint venture); maintain the status quo with the two existing courses - $600,000; or perform a market analysis/feasibility study to assess possible options for the city to pursue - $35,000 to $50,000. Mr. Cisneros explained the options staff has been developing since January 2001: donated property and development - $8.7 million; acquired property and development - $8.2 million; and airport property and development - $8.3 million. With regard to the airport option, Mr. Cisneros said the city owns 70 acres and would need to purchase an additional 110 acres for the possibility of a private golf contractor building and operating the facility. He said financing possibilities for that option include certificates of obligation, a future bond program, airport revenue bonds, or increasing the golf surcharge of $10.50 per round, for a total greens fee of $27. He said staff is recommending continuing to pursue the airport site option. Mr. Cisneros then responded to Mr. Kelly's questions about land donations and percentage - for -park requirements. Mr. Garrett said he thought constructing an additional nine regulation holes at the Oso Golf Course could be done fairly quickly. Mr. Cisneros said the direction staff received after January was to pursue the construction of an 18 -hole course. Mr. Garrett said he agrees that an 18 -hole course needs to be built eventually but a nine -hole course would help relieve some of the congestion at the existing two courses. Mr. Cisneros and Mr. Hamrick described the possible site of a course at the airport. Mr. Hamrick explained that a company called Gilmore Graves Golf of Phoenix expressed an interest in designing, building and operating a golf course on airport property if the city could provide the land and a suitable water supply. Following additional discussion, Mr. Garcia said staff feels the most cost-effective option at this time is to proceed with the privatization effort at the airport for an 18 - hole course. Mr. Kelly expressed concern about locating the course at the airport. He said he is not ready to commit to a specific location yet, but said there is some preliminary positive response about the city getting 200 acres off of Rand Morgan Road. He said he should have more definitive information in a few weeks. Mayor Neal called for a brief recess. Upon reconvening, Mr. McDaniel discussed the Police Department budget for FY00-01 and the proposed budget for FY01-02. He referred to additional information he provided to the Council in response to their extensive questions during last week's 1' Minutes - Regular Council Meeting June 19, 2001 Page 11 meeting. He said the re -estimated budget analysis at 10 months shows over -expenditures of $1,128,324 after all reimbursements have been accounted for. Police Chief Pete Alvarez also referred to the re -estimate of the FY00-01 budget and he described in detail the line items which made up the bulk of the over -expenditures: salaries and wages, $290,457; overtime, $663,510 ($271,798 net after reimbursements); other pay, $180,191; retirement, $125,803; and equipment maintenance, $152,201. He noted that the salaries and wages included costs for "drag -up" pay (accrued vacation and sick leave paid to retiring and departing officers), contractual step increases, civilian merit pay, and dispatchers' skill -based pay. The cost for the Metrocom dispatchers is being reimbursed by the county. Chief Alvarez said the overtime costs were incurred through Special Services grant programs, Concrete Street amphitheater activities, spring break, and vacancies in various divisions that must be covered. The "other pay" line item consists of an increase in vacation leave buy -backs and the equipment maintenance costs were for the mobile data terminal/automated vehicle location system. He said the adopted budget for FY00-01 is $39,682,181 and the re -estimated year-end amount is $40,734,322. The proposed FY01-02 budget amount is $42,071,441. Chief Alvarez acknowledged that anticipating drag -up costs is difficult but staff plans to change the way that issue is addressed. In addition, staff now has a better idea about how much overtime costs will be for the Concrete Street events and for spring break. He said they will closely monitor those expenditures to make sure they stay within their budget as much as possible. Responding to Mayor Neal, Mr. Garcia and Ms. Pat Eldridge of the Police Department said the graph illustrating overtime is a percentage of the hours of overtime used, not a percentage of the dollar amount. Ms. Eldridge said the city does not have a good tracking method for routine overtime because the grants are included in the overtime numbers she receives from the computer system. Mr. Garcia said it is difficult to manage overtime in the Police Department because of the unpredictable nature of their work. However, in the FY01-02 budget the reimbursements are being handled separately. He said staff needs to provide more accurate and timely information to the police commanders so they can determine the status of their divisions' expenditures and overtime usage. In reply to Mr. Kinnison, Chief Alvarez further discussed the contractual step increases, skill - based pay, other pay and the costs associated with the Concrete Street Amphitheater. Mr. Longoria asked about budgeting for drag -up costs. Mr. McDaniel said staff is budgeting for drag -up costs centrally for a total of $1.1 million for the whole organization. He said staff will be constantly evaluating how much should be transferred to the affected departments. A discussion ensued. Mayor Neal noted that it was time to hear comments from the audience. Mr. J.E. O'Brien, 4130 Pompano, referred to Article IV, Section 2(c) of the City Charter which reads that expenditures in the proposed budget will not exceed estimated revenues. He said the proposed budget violates that section of the Charter and he reminded the Council of the oath of office they took to uphold the law, including the city's laws. Mayor Neal said the Council has not Minutes - Regular Council Meeting June 19, 2001 Page 12 yet approved the budget; therefore, it has not violated the Charter. City Attorney Bray said he disagrees with the implication that that section of the Charter only pertains to current revenues. He said balancing the budget with reserves conforms with the Charter requirements. Mr. Garcia added that expenditures and revenues in the General Fund do balance. Mr. Leon Perez, 904 Buford, said the Police and Fire departments need to be adequately funded. He commented on previous city manager Marvin Townsend. Mr. Jack Gordy, 310 Norton, said he turned in an open records request asking for any exemptions for the Regional Transportation Authority and Cooper Outdoor Advertising. He said the Legal Department said no such document exists. He said Cooper is selling advertising on bus benches located in the rights-of-way, which he said violates state and city laws. Ms. Tracey Smith, 211 N. Carrizo, said she owns the George Blucher House Bed and Breakfast. She complained about the noise levels at the Concrete Street Amphitheater and she said she feels the legal noise limit of 80 decibels is too high and should be lowered. Ms. Smith said her business is located several blocks from the amphitheater but the noise is still very obtrusive. Mr. Garcia said he and the Police Chief are discussing how to deal with the noise problem. Mr. Colmenero suggested that the sound system be altered to change the direction of the sound waves. Mr. R.F. Hasker, 1813 Wallace, said the tax monies brought in by the tax increment financing district will not support the financing of the Packery Channel project. He said there are many questions still surrounding the project. Ms. Susie Luna-Saldana, 4710 Hakel, said the Police and Fire departments do a tremendous job and she singled out the efforts of Chief Alvarez. Returning to the discussion about the Police Department, Mr. Scott said representatives of the Concrete Street Amphitheater have a different understanding about the costs for which they should be responsible. Chief Alvarez said his staff has had several meetings with amphitheater personnel about different costs. Mr. Garcia pointed out that the number of officers the city needs to provide at that venue varies greatly depending on the actual event. In response to Mr. Colmenero, Mr. Garcia said Buccaneer Days and Bayfest reimburse the city for the city's costs but other events do not, such as Beach to Bay and the Jazz Festival, which are free events. Ms. Eldridge said the timing of the grant reimbursements varies greatly. Chief Alvarez discussed the use of on -duty and off-duty police officers at Concrete Street and other events. Mr. Chesney said he believes Chief Alvarez deserves credit for Police Department achievements, such as the rebuilding of a former crack house on Stafford Street. He said he is still concerned about the causes of the over -expenditures. Mr. Chesney asked how many years the Police Department has gone over budget and by what amounts. Mr. McDaniel distributed a handout showing a breakdown of the Police budgets from FY95-96 to the proposed FY01-02 budget. Mr. Garcia said the department was under -budget in fiscal years 1996-97 and 1997-98 and over -budget 7 Minutes - Regular Council Meeting June 19, 2001 Page 13 in fiscal years 1995-96, 1998-99, 1999-2000, and 2000-01. Responding to additional questions from Mr. Chesney, Chief Alvarez said he became Chief of Police in January 1996. He said drastic cuts were made in the two fiscal years when the department was under -budget but cuts like that result in a reduction of services, which eventually impacts the department. Chief Alvarez said this budget process has been a learning process for him and his staff and there are a number of things he will do to ensure that this situation does not reoccur. Mr. Chesney noted that the citizens approved a crime control district which gave the Police Department even more monies to provide public safety programs to the community, yet the department has been over -budget the last three fiscal years. Chief Alvarez said barring any catastrophes or unexpected major incidents, the Police Department will be within budget next year. In reply to Mr. Garrett, Chief Alvarez described the process he and his staff go through when preparing their budgets for the next fiscal year. He said his commanders present their budgets and he meets with them to begin making reductions. Then additional reductions occur when the Police Department budget is submitted to the Office of Management and Budget. He admitted that the "other pay" over -expenditure was an oversight on their part. Mr. Noyola thanked Chief Alvarez, the police officers, and volunteers for their efforts with the house on Stafford Street. Responding to a question from Mr. Noyola, Chief Alvarez said the Police Department is budgeted for 395 officers but the actual number of officers is 383. He said the department is reimbursed for salaries and overtime for nine dispatchers provided by the county in Metrocom. He also further discussed the Concrete Street and spring break activities. Mr. Kelly asked about the drag -up pay issue. Mr. McDaniel said it will be the joint responsibility of both the Budget Office and the Police Department, but the monies will be centrally budgeted. He said the anticipated drag -up pay for FY01-02 is not reflected in the proposed Police budget of $42,071,441. He said the amount budgeted for drag -up pay next year is $1.1 million for all departments, the majority of which is attributed to the Police and Fire departments. Mr. McDaniel said he worked closely with the departments when they submitted their budgets for FY01-02 so the department heads will be comfortable with the figures as they and the Budget Office monitor them throughout the fiscal year. Mr. Noyola asked that the Council receive a quarterly report on the amount of overtime being used in all city departments. Responding to Mayor Neal, Mr. Garcia said staff will be bringing back a recommendation on the deficit in the school crossing guard program as a result of the county no longer collecting the additional $1.50 fee. Chief Alvarez further described how overtime is apportioned. Mr. Scott asked about last year's attrition plan. The Chief replied that they are in the second year of a five-year plan. The Mayor said the over -expenditures that occurred in the Police Department are not just the responsibility of Chief Alvarez and Ms. Eldridge. He said the Chief needs to look closely at his associates and make them accountable. Mr. Garcia pointed out that the public hearing on the proposed operating budget is scheduled for June 26th, with the first reading on July 10th and the second reading on July 17th. Minutes - Regular Council Meeting June 19, 2001 Page 14 Mayor Neal opened discussion on Item 13, Sesquicentennial Committee. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 13. RESOLUTION NO. 024484 Resolution establishing a City of Corpus Christi Sesquicentennial Celebration Advisory Committee to consider and propose activities, events, and promotions to recognize the 150th Anniversary of the City. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal called for the City Manager's report. Mr. Garcia announced a legislative wrap-up to be held in Dallas on June 25th. In addition to the budget discussions for next week, other items include a presentation about the Corpus Christi Army Depot, the marina, Corpus Christi Beach project, solid waste disposal contracts, and other issues. In his report, the Mayor said he attended a workshop in Dallas last week where he and others met the new director of the Environmental Protection Agency, Ms. Christine Todd Whitman. The workshop was intended for cities which have non -attainment status or are near non -attainment to comment on changes to the air pollution monitoring standards. He said Corpus Christi wants to retain oversight of its pollution -control efforts and receive credit for its achievements over the years. He then called for Council concerns and reports. Mr. Scott asked for an update on a speed hump on Hawksnest Bay Drive and he said several residents on Robert Street are very concerned about one particular resident's actions. Mr. Kelly reported that a park clean up was held at Labonte Park in northwest Corpus Christi on Saturday and he thanked the CITGO volunteers and others for their assistance. Mr. Chesney submitted the names of Lori Wilson and Eddie Galvan and Mr. Noyola submitted the names of Edna Balboa and Maria Ramirez to serve on the Sesquicentennial Committee. Mr. Noyola also thanked Mr. Chesney and Mr. Kelly for attending the Stafford Street event and the volunteers for their help. Mayor Neal invited the Council members to the TML Board reception on the U.S.S. Lexington on June 21st. Mr. Colmenero announced that the Association of Hispanic Municipal Officials will hold their state conference in Corpus Christi on June 28-29. There being no further business to come before the Council, Mayor Neal adjourned the Council meeting at 7:12 p.m. on June 19, 2001. *************