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HomeMy WebLinkAboutMinutes City Council - 07/17/2001I 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 July 17, 2001, which were approved by the City Council on July 24, 2001. WITNESSETH MY HAND AND SEAL, this 24th day of July, 2001. SSr--- Armando Chapa City Secretary SEAL P MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting July 17, 2001 12:13 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 Rev. Prince Kuruvila, St. Patrick's Church, and the Pledge of Allegiance to the United States flag was led by Council Member Garrett. 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 July 10, 2001. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * * * * Mayor Neal called for consideration of the consent agenda (Items 2-17). There were no comments from the Council or the audience. City Secretary Chapa polled the Council for their votes: 2. M2001-259 Motion approving supply agreements with the following companies for the following amounts in accordance with Coastal Bend Council of Governments Bid Invitation No. CBCOG-01-4 for food items which include canned and frozen fruit and vegetables, meats, and condiments for an estimated six month expenditure of $89,748.44 based on the recommended award submitted by the Coastal Bend Council of Governments. The terms of the contracts shall be for six months with an option to extend for up to three additional months, subject to the approval of the Coastal Bend Council of Governments, the suppliers, and the City Manager or his designee. Funds have been budgeted by Senior Community Services in FY2001-2002. Sysco Food Service San Antonio, TX 87 Items $31,041.26 LaBatt Food Service Cor us Christi. TX 107 Items $40,446.81 Ben E. Keith San Antonio. TX 67 Items $15,081.55 Minutes - Regular Council Meeting July 17, 2001 Page 2 Sam Hausman Meats Corpus Christi. TX 1 Item $3,017.16 Lance, Inc. Charlotte, NC 1 Item $161.66 Grand Total: $89,748.44 The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 3. M2001-260 Motion approving a supply agreement with Hill Country Dairy, Corpus Christi, Texas in accordance with Coastal Bend Council of Governments Bid Invitation No. CBCOG-01-5, for 118,537 half-pint containers of milk consisting of homogenized milk, buttermilk, low fat milk, low fat chocolate milk, and skim milk, based on the recommended award submitted by the Coastal Bend Council of Governments for an estimated six month expenditure of $23,170.37. The term of the agreement shall be for six months with an option to extend for up to three additional months, subject to the approval of the Coastal Bend Council of Governments, the supplier and the City Manager or his designee. Funds have been budgeted by Senior Community Services in FY2001-2002. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 4. M2001-261 Motion approving a supply agreement for approximately 13,200 tons of flexible base caliche in accordance with Bid Invitation No. BI -0103-01 with Martin Marietta Materials, Corpus Christi, Texas, based on only bid for an estimated annual expenditure of $138,540. The term of the contract is 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. This material will be used by the Street, Water, Wastewater, Gas and the Elliott Landfill. Funds have been budgeted in FY2000-2001 by the using departments and requested for FY2001-2002. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 5. M2001-262 Motion approving supply agreements with the following companies for the following amounts in accordance with the Coastal Bend Council of Governments Bid Invitation No. CBCOG-01-6 for paper goods, for an estimated twelve-month expenditure of $31,381.64 based on the recommended award submitted by the Coastal Bend Council of Governments. The term of the contracts shall be for twelve months with an option to extend for up to twelve additional months, subject to the approval of the Coastal Bend Council of Minutes - Regular Council Meeting July 17, 2001 Page 3 Governments, the suppliers, and the City Manager or his designee. Funds have been budgeted by Senior Community Services in FY2000-2001 and requested in FY2001-2002. Sysco Food Service San Antonio, TX $18,337.01 Gulf Coast Paper Co. Corpus Christi, TX $8,070.96 Ben E. Keith San Antonio, TX $1,768.53 Grand Total: $31,381.64 LaBatt Food Service Corpus Christi. TX $3,205.14 The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 6. M2001-263 Motion authorizing the City Manager or his designee to execute Amendment No. 3 to the engineering services contract in the amount of $238,400 with Urban Engineering for the Infiltration/Inflow Collection System Rehabilitation Project. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 7. M2001-264 Motion authorizing the City Manager or his designee to execute a construction contract in the amount of $197,665 with Bay Area Contracting and Construction, Inc. for the Renovation of Senior and Recreation Centers at the following sites: Ethel Eyerly Senior Center, Oso Recreation Center, and Broadmoor Senior Center. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 8. M2001-265 Motion authorizing the City Manager or his designee to increase the Advanced Funding Agreement in the amount of $76,273.70 with the Texas Department of Transportation for illumination improvements associated with the Crosstown Expressway/South Padre Island Drive Expressway Interchange Project. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 9. ORDINANCE NO. 024492 Ordinance authorizing the City Manager or his designee to execute a Use Privilege Agreement with Stabil Drill Specialties, granting the right to construct, maintain, and remove Minutes - Regular Council Meeting July 17, 2001 Page 4 a culvert and driveway crossing over an existing minor ditch in a 50 -foot wide City drainage right-of-way at 426 South Navigation Boulevard; establishing a fee of $1000, and other specified conditions. 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." 10. M2001-266 Motion authorizing the City Manager or his designee to execute a consultant contract with Smith, Russo and Mercer Consulting Engineers for a total fee not to exceed $21,975 for the Manshiem Area Rolled Curb and Gutter Improvements. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 11. M2001-267 Motion authorizing the City Manager or his designee to execute a consultant contract with Smith, Russo and Mercer Consulting Engineers for a total fee not to exceed $78,098 for the Concrete Channel Rehabilitation (Emory Ditch Project). The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 12. ORDINANCE NO. 024496 Ordinance abandoning and vacating a 2,256.24 -square foot portion of a 50 -foot cul-de-sac utility easement out of Lot 4, Block 502, Padre Island - Corpus Christi Mariner's Cay Subdivision; requiring the owner, Mr. B. Wiley Mayden, 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." 13.a. M2001-268 Motion authorizing the City Manager or his designee to accept a grant in the amount of $54,927 from the State of Texas, Office of the Governor, Criminal Justice Division for funding available under the Violence Against Women Act Fund and to execute all related documents. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Minutes - Regular Council Meeting July 17, 2001 Page 5 13.b. ORDINANCE NO. 024497 Ordinance appropriating $54,927 from the State of Texas, Office of the Governor, Criminal Justice Division in the No. 1050 Federal/State Grants Fund for funding available under the Violence Against Women Act (VAWA) Fund; transferring $5,888 from the No. 6010 Law Enforcement Trust Fund and appropriating it in the No. 1050 Federal/State Grants Fund as grant matching funds. 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." 14.a. M2001-269 Motion authorizing the City Manager or his designee to execute Amendment No. 3 to Grant Contract No. 582-0-31274 with the Texas Natural Resources Conservation Commission (TNRCC) which funds air quality planning and research for $161,000. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 14.b. ORDINANCE NO. 024498 Ordinance appropriating $161,000 from Texas Natural Resource Conservation Commission (TNRCC), under Amendment No. 3 to TNRCC Grant Contract No. 582-0-31274, in the No. 1050 Federal/State Grants Fund for conducting air quality planning activities. 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." 14.c. RESOLUTION NO. 024499 Resolution authorizing the City Manager or his designee to execute Amendment No. 3 to the Interlocal Cooperation Agreement with Texas A & M University - Kingsville for conducting an Air Quality Research and Planning Program. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 14.d. RESOLUTION NO. 024500 Resolution authorizing the City Manager or his designee to execute Amendment No. 2 to the Interlocal Cooperation Agreement with Texas A&M University -Corpus Christi for the City's Pollution Prevention Partnership and Educational Outreach Program. Minutes - Regular Council Meeting July 17, 2001 Page 6 The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 15.a. M2001-270 Motion authorizing the City Manager or his designee to execute a contract with Sixteen Services Inc., guaranteeing the delivery of all acceptable waste collected within the boundaries of the Coastal Bend Council of Governments to the J.C. Elliott Landfill for a specified fee, for a period not to exceed the life of the J.C. Elliott Landfill. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 15.b. M2001-271 Motion authorizing the City Manager or his designee to execute a contract with Captain Hook, Inc. guaranteeing the delivery of all acceptable waste collected within the boundaries of the Coastal Bend Council of Governments to the J.C. Elliott Landfill for a specified fee, for a period not to exceed the life of the J.C. Elliott Landfill. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 16.a. M2001-272 Motion authorizing the City Manager or his designee to execute Attachment No. 1 to Contract No. 7460005741-2003 with the Texas Department of Health in the amount of $150,000 for surveillance, abatement and education of vector-borne diseases in Corpus Christi. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 16.b. ORDINANCE NO. 024501 Ordinance appropriating a grant from the Texas Department of Health in the amount of $150,000 in the No. 1050 Federal/State Grants Fund for surveillance, abatement, and education of vector-borne diseases in Corpus Christi and to fund a full-time Epidemiologist position. 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." Minutes - Regular Council Meeting July 17, 2001 Page 7 17. ORDINANCE NO. 024502 Ordinance authorizing and allowing under the act governing the Texas Municipal Retirement System, the City of Corpus Christi to make current service and prior service contributions to the City's account in the Municipal Accumulation Fund of the Texas Municipal Retirement System at the actuarially determined rate of total employee compensation; establishing an effective date for the ordinance; and providing for severance. The foregoing ordinance passed on second reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal referred to Item 18, and a motion was made, seconded and passed to open the public hearing to consider vacating and abandoning a 2,250 -square foot portion of a 50 -foot wide street right-of-way on Purl Place, north of the Robert Drive street right-of-way. No one appeared in opposition to the proposal. A motion was made to close the public hearing, which was seconded and passed. City Secretary Chapa polled the Council for their votes as follows: 18.b. ORDINANCE NO. 024503 Ordinance abandoning and vacating a 2,250 -square foot portion of a 50 -foot wide street right-of-way on Purl Place, north of the Robert Drive street right-of-way; requiring owners Dr. and Mrs. Robert W. Madry, Jr. and Mrs. Ann C. Yeager, 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." * * * * * * * * * * * * * Mayor Neal referred to Items 22 and 23, two awards bestowed by the Government Finance Officers Association. The Mayor presented the Management and Budget Office with the "Distinguished Budget Presentation Award" for FY 2000-2001. Mr. Mark McDaniel, Director of Management and Budget, accepted the award along with the following members of the Budget staff: Mario Tapia, Eddie Houlihan, Raymond Rivas, and John Sendejar (not present were Nelda Pena and Elma Ramos). Mayor Neal also presented the "Certificate of Achievement for Excellence in Financial Reporting" to the Financial Services Division, which is headed by Mr. Jorge Cruz-Aedo. The staff members present were: Cindy O'Brien, Chris Commons, Karen Petty, Janie Baysinger, Gary Hallett, and Mike Harty (not present were Olga Plomarity, Linda Longoria, and Adel Rowland). * * * * * * * * * * * * * Minutes - Regular Council Meeting July 17, 2001 Page 8 Mayor Neal opened discussion on Item 24, the city's health insurance rates. Using a computer presentation, Mr. Cruz-Aedo said the actuary is recommending the following changes to the city's four health insurance plans: Citicare and Citicare Q -Plus, 16.96% increase (per employee cost); Citicare Fire, 26.93% increase; and Public Safety Citicare (police), 21.17% increase. He said the actuary also recommended raising the emergency room co -pay from $35 to $50 for Citicare and to consider eliminating Citicare Q -Plus. Mr. Cruz-Aedo said the actuary also recommended the following plan design changes for Citicare Fire: raise the annual deductible from $100 to $200 with a $1,000 out-of-pocket maximum (versus $525 currently); make the prescription co -pays match those for Citicare; and consider implementing an emergency room co -pay. He said the actuarial premium rate adjustment is 26.93% for August 1, 2001, and the city recommends negotiating with the firefighters union, making plan changes to reduce costs, and then set rates to cover Citicare Fire. With regard to Public Safety Citicare, Mr. Cruz-Aedo said the actuary recommended raising the lab, x-ray, and prescription co -pays to the level of the Citicare plan. Other actuarial recommendations were to implement either an annual deductible or a per -admission deductible to in-patient hospital admissions, as well as increasing the emergency room co -pay from $15 to $50. The actuarial premium rate adjustment for police is 21.17% and, as with Citicare Fire, city staff is recommending negotiating with the police union, making plan changes and setting the rates accordingly. Mr. Cruz-Aedo said city staff agrees with the actuarial recommendation to increase the rates for Citicare and Citicare Q -Plus by 3% and to raise the emergency room co -pay from $35 to $50. He explained that staff calculated the increase as follows: actuarial recommendation - 16.93% increase, less a deviation factor of 7% and savings from administrative changes and emergency room co -pay savings of 7.25%, for a difference of 2.68%, thus resulting in the proposed 3% increase. He said if approved, the monthly employee contribution for Citicare premiums for "Employee Only" would remain at $21.66, while "Employee/Spouse" would increase from $127.05 to $130.20; "Employee/Children" would increase from $105.50 to $107.99; and "Employee/Family" would increase from $192.23 to $197.33. He also discussed how the employee's contribution for Citicare Q -Plus would change, as well as how the city's monthly contribution for Citicare and Citicare Q -Plus premiums would increase. Responding to Mayor Neal, Mr. Cruz-Aedo said the retirees' premiums are incorporated in the figures he discussed. Council Member Noyola asked about the state's Children's Health Insurance Program (CHIP). Mr. Cruz-Aedo said a CHIP representative was present during open enrollment and many city employees applied for the program, although some were denied due to income levels and other reasons. Council Member Scott asked about the actuary's recommended increase. Mr. Cruz-Aedo said the actuary's figures are very conservative and, based on the city's positive 12 -month history, staff is proposing lowering the actuary's figure by 7%. He added that staff is very closely monitoring the Minutes - Regular Council Meeting July 17, 2001 Page 9 city's usage of the health insurance program. Council Member Longoria asked about the police and fire negotiations, which Mr. Cruz- Aedo explained. Regarding the Citicare Q -Plus program, he said historically it has consisted of very few members and staff will be recommending phasing it out during the next open enrollment period. He also discussed the effects of the increases in the city's contributions for Citicare and Citicare Q - Plus. He said due to the volatility of the health care industry, there is a possibility that program changes may be made in the future. Responding to Council Member Garrett, Mr. Cruz-Aedo added that there may also be changes to the prescription drug program. In reply to Mr. Colmenero, Mr. Cruz-Aedo said diabetes -related claims are very high and the city is working with the carrier to provide diabetes education programs and other wellness issues. Council Member Kinnison noted that there is an additional $1 million budgeted in the General Fund for health insurance costs, three-quarters of which pertains to Police and Fire. Mr. Cruz-Aedo said plan changes can be made at any time during the year. Mr. Kinnison asked about the methodology used to determine the percentage of premium increases. Mr. Cruz-Aedo explained that staff determined that premiums should be collected from the groups incurring the costs, and historically employees alone are not large users of the health insurance plan. * * * * * * * * * * * * * Mayor Neal opened discussion on Items 25, 26 and 27 regarding several Solid Waste Services issues. Using a computer presentation, Mr. Jeffrey Kaplan, Director of Solid Waste Services (SWS), explained that the three proposed ordinances are needed to operate the city's waste management system. He said in the process of developing the ordinances, staff received valuable input from local waste haulers as well as assistance from the firm of Gershman, Brickner & Bratton (GBB). He said that firm will also help prepare the Cefe Valenzuela Landfill business plan. In addition, the city has retained the firm of Collier, Johnson & Woods to conduct a full -cost accounting study on the solid waste system. Mr. Kaplan said the first proposed ordinance regards the placement of yard waste for collection; the second ordinance pertains to private dumpsters in the right-of-way; and the third ordinance concerns changes in permitting and the service charge. With regard to the first ordinance, Mr. Kaplan said yard waste may be set out on dedicated days or along side household trash. He said this change is being proposed to improve collection efficiency and reduce resident complaints. Mr. Kaplan said the second proposed ordinance states that, when possible, dumpsters must be placed on the generator's property, or they may be placed temporarily (during construction and demolition projects) in the street right-of-way if there is not enough space or the dumpster is too heavy for the driveway. He said the property owner or contractor must pay various fees if a dumpster occupies a public right-of-way, and the dumpster's comers must be clearly marked with reflective tape, cones and barricades as required. In addition, the adjacent property owner must provide consent to the placement of the dumpster. Minutes - Regular Council Meeting July 17, 2001 Page 10 With regard to the third ordinance, Mr. Kaplan said that under the current annual permit fees, haulers collecting municipal solid waste outside the city limits (OCL) pay $140 per vehicle and those collecting inside the city limits (ICL) pay $70 per vehicle. The proposed ordinance replaces the current fees as follows: self -hauler permits will be $50 per year per company; hauler -for -hire permits will be $100 per year per company; and there will be a $1 per year registration sticker for all vehicles and containers. Mr. Kaplan said that in order for haulers to be permitted, they must carry adequate liability insurance to protect the health and safety of the citizens. He explained that system -wide permitting will improve administration and enforcement of the proposed service charge. Mr. Ron Massey, Assistant City Manager for Public Works and Utilities, pointed out that a "self -hauler" is not the same as BFI; rather, an example is a company that performs roofing repairs and generates debris (such as shingles) that must be transported to the landfill. Mr. Kaplan and Mr. Jay Reining, First Assistant City Attorney, responded to Council members' questions regarding the stickers; liability insurance for both the hauling vehicles and for activities on the working face of the landfill; and the definition under the proposed ordinance of yard waste versus light brush. Returning to the computer presentation, Mr. Kaplan explained that the solid waste service charge is applied to generators of waste within the city limits. He said the purpose is to recover the costs of operating a comprehensive solid waste system; currently those costs are recovered through a "bundled" tipping fee. He then delineated the costs, which include environmental compliance, enforcement and educational programs, administrative costs, "Cash for Trash," project fee, household hazardous waste program, environmental contingency, and street damage. Additional discussion ensued. Mr. Kaplan said staff will continue to review the department's costs after the full - cost accounting study is completed. Mr. Kaplan said other governmental entities which charge generator fees include Tulsa, Oklahoma; Palm Beach County and Brevard County, Florida; Austin, Texas; Montgomery County, Maryland; and Prince William County, Virginia. He said the methodology used to determine the service charge was to analyze the FY 2001-02 budget projections, measure revenues and expenses linked to the solid waste system, and translate those system costs into "per ton" and "per cubic yard" unit charges for all waste generated within the city limits. The SWS Director said the ordinance proposes the following charges: for commercial customers who have a "put -or -pay" contract with the city, the base charge is $11.42 per ton, and the average credit for a put -or -pay contract is $4.80, which results in an average net charge of $6.62 per ton. In addition, the cash customer credit is $10.25, for a net charge of $1.17 per ton. He said the assumption is that one ton of trash equals 25 cubic yards. For residential customers, the net charge would be $0.82 per month or $9.84 per year. Mr. Massey pointed out that a hauler with a put -or -pay contract will pay the city $19.50 for every ton he takes to the landfill plus the state fee. In addition, he will also bill residents for the city's Minutes - Regular Council Meeting July 17, 2001 Page 11 solid waste system service charge and he will in turn pay the city $6.62 per ton. In response to Council Member Garrett, Mr. Bray pointed out that a business in Portland would not have to pay the extra solid waste system service charge that a business in Corpus Christi would have to pay because OCL businesses do not receive (and therefore not pay for) other solid waste services which are provided to ICL customers. Mr. Kaplan reviewed a chart of examples of current versus proposed disposal charges for commercial accounts and residential accounts. He noted that currently the city charges $14 for residential solid waste services and the proposed increase would bring the total to $14.82 per month, which is still significantly less than the monthly rates charged by Austin (averages $24.30), El Paso (averages $25.16) and Brownsville (averages $22.80), all three of which have once -a -week garbage collection. Mr. Kaplan said staff calculates that the solid waste service charge will generate $1,270,560 from commercial accounts and $718,320 from residential accounts, for a total of $1,988,880 in revenue (which includes the street allocation). Mayor Neal called for a brief recess to read the day's proclamations. Upon reconvening the meeting, Mayor Neal called for public comment on Items 25, 26 and 27. Mr. J.E. O'Brien, 4130 Pompano, said he is opposed to the proposed residential increase of $0.82 per month. He said he thinks the continuing increase in city fees is driving more people out of Corpus Christi. Mr. Massey noted that currently the monthly residential fee is $14 and the proposal is to raise it to $14.82. Mr. Joe Kramer, Vice President of El Centro Landfill, said the proposed solid waste system service charge would have an immediate and negative impact on many businesses and non-profit organizations located inside the city limits of Corpus Christi. He said the proposed ordinance is unfair and discriminatory; will result in increased costs; creates a competitive disadvantage; and is an abuse of the city's powers. He said El Centro will continue to offer environmentally sound, low- cost disposal services to citizens and businesses of Corpus Christi, and he asked the Council to oppose the ordinance. Council Member Chesney asked several questions of Mr. Kramer, who acknowledged that his company has a vested interest in opposing the ordinance. With regard to possible legal concerns, Mr. Bray said the city's ordinance has been developed in conjunction with legal consultants who specialize in this area. He said the basic thrust of the ordinance is to provide fair competition by actually identifying the cost of providing a solid waste system, which the city by law is obligated to do, and properly assessing the individuals who receive the benefits of that system. He said this is a fair and equitable ordinance and it is their opinion that it meets the tests developed in the case law. Mr. Kramer said the city should assess a fee per ton or per cubic yard of the waste that is generated inside the city limits which would cover the cost the city needs for its landfill, and then let the businesses decide where they want to dump their garbage. He said the fee to go to El Centro Landfill is $11.42 and the city's proposed fees are significantly less. Mr. Massey and Mr. Kaplan reiterated staff's methodology in setting the rates. Mr. Kramer said this proposal makes people use Minutes - Regular Council Meeting July 17, 2001 Page 12 the city's Elliott Landfill and eliminates competition. Further discussion ensued. Mr. Bill Davis, District Manager of BFI, said this proposal does not seem to be in the best interest of the companies which have entered into put -or -pay contracts with the city. He said under this ordinance, his company would only save 25 cents per ton over haulers without such contracts, which equates to a 1% discount for $3 million worth of guaranteed revenue to the city. Mr. Davis responded to Council members' questions, saying that when BFI entered into their contract with the city, they were aware that there was a generator fee under consideration but they did not know the scope of the fee. City Manager Garcia said the city would like haulers to have put -or -pay contracts with the city and if the discount the city offers is not adequate, staff should reexamine it. Mr. Bill Pruett, 1226 Annapolis, said he is opposed to the residential fee increase. He said as a way to cut costs, the Council should consider reducing garbage collection to once per week, which would force people to recycle more. He also discussed the damage to city streets caused by RTA buses only having one axle. Mr. Jose Marroquin questioned his garbage collection fee. Mayor Neal pointed out that C.C. Disposal is a different company than BFI. Mr. Larry Woods, of Sixteen Services, said he agrees with Mr. Davis of BFI that there needs to be a larger discount for haulers with put -or -pay contracts with the city. He said there were many problems with this proposal initially, but staff has worked with the haulers to meet their needs. He added that he feels the cost of damage to the city's streets should be borne by every citizen. Mr. John Bell, representing Corpus Christi Disposal Service, encouraged the Council to seriously consider Item 27 pertaining to the solid waste system service charge because it proposes several changes that were disseminated late last Friday. He said the ordinance would impose several pages of record-keeping requirements for all solid waste haulers, which he explained. He also discussed the requirement to have stickers on vehicles and dumpsters as well as specifics about the unbundling of costs. He said people outside the city limits will benefit more than those inside the city limits. Mr. Bell said the proposed ordinance erases the competitive environment that exists and he asked the Council to postpone consideration of the ordinance. Responding to Council members' questions, Mr. Bell said this proposal affects his client in several ways, specifically with regard to record-keeping requirements. Mr. Reining said those requirements are included to allow the city to audit haulers to ensure that they are collecting the generator fee from all their customers within the city limits, which he further explained. Following additional discussion, Mr. Massey said some of the issues raised by Mr. Bell can be worked out. Council Member Kinnison said that a comparison of commercial revenue for FY 2000-01 and FY 2001-02 indicates that there is no increase. Council Member Longoria asked several questions of staff, including specifics about the proposed disposal charges and the auditing requirements. Mr. Kaplan explained that projections have to be made about when to open landfill cells so that they are prepared to begin receiving waste. He Minutes - Regular Council Meeting July 17, 2001 Page 13 reiterated that GBB is helping to prepare the business plan for the Valenzuela landfill and Collier, Johnson & Woods is preparing the full -cost accounting study, which he explained. Mr. Longoria said the proposal drives competitors out by controlling where the ICL garbage goes. Mr. Massey discussed the difference in the rates charged by El Centro and the city's rates, as well as the purpose of the solid waste system service charge. Mr. Garcia said the simplest way for the city to address this issue is to go into the commercial hauling business but that would not be a viable option. Council Member Colmenero also asked about several aspects of the proposal, including the collection of monies from customers, reconciliation of records and auditing mechanisms. Mr. Massey said over the last several months he has met with representatives of several companies, who have indicated that as long as the city's expenses for operating its solid waste system are fairly assessed, they can accept those fees. He added that staff is committed to reviewing the figures to ensure that they are accurate. In response to Council Member Kelly, staff discussed the many programs that are offered as part of the city's solid waste system, such as recycling, household hazardous waste and "Cash for Trash." Mr. Kelly said it appears that based on staff's responses, municipalities other than Corpus Christi either choose not to provide services such as recycling or, if they do, they pay for them through some other tax in their own communities. Mr. Garcia said he thinks the real effect on commercial businesses will be negligible while the main effect will be on the haulers. He said when the cost to dump one ton of garbage went from $27 at the city's landfill to $15 at El Centro, that savings was not passed through to the commercial customers --it was a windfall to the haulers. Mr. Massey explained the different put -or -pay contracts that exist. Council Member Scott asked whether a $2 million shortfall in the proposed budget would result if the ordinance were to fail. Mr. Garcia replied affirmatively, saying that the Council and staff would have to consider a combination of service reductions and possible revenue increases. There was also discussion about the timing of the full -cost accounting results, the issue of the release of information, and credits offered to put -or -pay contract holders. In light of this item's impact on the budget, Mr. Garrett expressed concern that staff provided this information to the Council late on Friday. He asked how many haulers have put -or -pay contracts with the city. Mr. Massey said currently there are three: BFI, Sixteen Services, and Captain Hook. Mr. Kaplan said there are probably less than five permitted haulers in the city limits. Mr. Garrett also asked about the cost of the recycling program, and Mr. Massey said it is just under $1 million. He added that the haulers will collect the solid waste system service charge from commercial generators of trash and the city will collect it from residential generators. Mr. Kinnison said he supports staff's proposal but he would like them to address the concerns that have been raised, such as the proprietary nature of information obtained. He said there are long- term issues that can be addressed in the future. Responding to Council Member Noyola, Mr. Massey said the amounts charged by haulers will vary. Mr. Noyola said he does not support the proposed increase in the residential fee. Minutes - Regular Council Meeting July 17, 2001 Page 14 Mr. Massey said one of the things the city has not done in the past, for which it has been criticized (particularly by the commercial haulers), is that the city has not billed itself for the landfill tipping charge because the city owns and operates the landfill. However, there are costs associated with burying garbage at the landfill. Consequently, the $0.82 residential fee is intended to generate additional revenue so that the cost of providing service to all the ICL residential accounts is shared by them. Mr. Massey said the city is trying to improve its residential waste operation through the automated collection program. Mr. Noyola said poor people cannot afford any more increases. Mayor Neal asked about an approximate $1 million in "commercial and industrial" revenues listed under "residential revenues" in the proposed FY01-02 budget. Mr. Lawrence Mikolajczyk, Assistant Director of Solid Waste Services, explained that it is comprised of four-plex and eight-plex residential housing units for which the city provides garbage pick up for between $23 to $54 per month. He said some of the older accounts were based on volumes they produced in the past and those amounts have not been adjusted. Responding to other questions from the Mayor, Mr. Massey and Mr. Kaplan discussed the cost of brush collection and grinding operations at the landfill. The Mayor said he is searching for a way to resolve the concern that the proposed ordinance is not fair or equitable. He outlined the options that are available to the Council and he said adjustments need to be made to staff's recommendation. He said since the pricing that was offered by the competitive landfill was so far below what it had to be, it appears their motive was to put Corpus Christi's landfill out of business. City Secretary Chapa polled the Council for their votes as follows: 25. FIRST READING ORDINANCE Ordinance amending the City Code of Ordinances, Chapter 21, Garbage, Trash, and Other Refuse regarding the disposal of yard waste and eliminating the limit on the number of containers that may be set out by residential customers, providing for penalties. The foregoing ordinance passed on first reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, and Scott voting "Aye"; Noyola voting "No." 26. FIRST READING ORDINANCE Ordinance amending the City Code of Ordinances, Chapter 21, Garbage, Trash, and Other Refuse, and Chapter 53, Traffic, regarding placement of disposal dumpsters within rights -of - ways; providing for penalties. The foregoing ordinance passed on first reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, and Scott voting "Aye"; Noyola voting "No." Mr. Noyola made a motion to amend Item 27 to delete the residential fee increase. The motion died for lack of a second. Mr. Chapa polled the Council for their votes on Item 27: Minutes - Regular Council Meeting July 17, 2001 Page 15 27. FIRST READING ORDINANCE Ordinance amending the City Code of Ordinances, Chapter 21, Garbage, Trash, and Other Refuse regarding permitting commercial collection of solid waste within the city, permitting commercial solid waste vehicles, and adjusting the tipping fees for solid waste at the City's landfill; providing for penalties; and providing for an effective date. The foregoing ordinance passed on first reading as follows: Neal, Colmenero, Kelly, Kinnison, and Scott voting "Aye"; Chesney, Garrett, Longoria, and Noyola voting "No." * * * * * * * * * * * * * Mayor Neal called for a brief recess. Upon reconvening, he referred to Item 19, and a motion was made, seconded and passed to open the public hearing on the following zoning case: 19. Case No. 0501-01. Corpus Christi Outpatient Surgery. Ltd.: A change of zoning from an "R- IB" One -family Dwelling District with a "SP" Special Permit and "R-2" Multiple Dwelling District with a "SP" Special Permit to a `B-1" Neighborhood Business District on Port Aransas Cliffs, Block 816A, Lot 66, and north one-half portion of the Proctor Ditch, located on the east side of South Alameda Street, approximately 650 feet south of Ropes Street. Mayor Neal said he understood that the Planning Commission and staff were recommending tabling this case for one week. Mr. Michael Gunning, Director of Planning and Development, said additional time is needed to research documents relating to this case. Mr. Kelly made a motion to table Item 19 until July 24, 2001, seconded by Mr. Kinnison and passed. TABLED Amending the Zoning Ondivanc , upon application by Corpus Christi Outpatient Surgery, Ltd., Ly chanlginig the zoning map in renncc to Lot 66, Bluck 816A, Pont Anailcab Cliffs nc nlonlll C4 lcct vl I11c 11vctvn 1)11c11, (cu111/4,11t1y c-Idnuly 1)wcllmg • • • • • ••• l.e11 C1 5u11� ntc plan a11fl clevell (11) cOun11l'vim, alma' 1ins Lhc l.vulplcllcuolvc Flail uut Ion auy Qc vldllou5 noel I[1e eAISI1ng l.:oulp1 c11eu514e 1"lan. * * * * * * * * * * * * * Mayor Neal referred to Item 20, and a motion was made, seconded and passed to open the public hearing on the following zoning case: 20. Case No. 0601-01. MSW Promenade. L.P.: A change of zoning from an "R -1B" One -family Dwelling District with a "SP" Special Permit to a "B-1" Neighborhood Business District on Cullen Place Unit 1, Block 8, Lot 3, located on the east side of Airline Road, approximately 450 feet north of McArdle Road. Minutes - Regular Council Meeting July 17, 2001 Page 16 City Secretary Chapa said the Planning Commission and staff recommended approval of the "B-1" Neighborhood Business District. No one appeared in opposition to the zoning change. Mr. Colmenero made a motion to close the public hearing, seconded by Mr. Kinnison, and passed. Mr. Chapa polled the Council for their votes as follows: 20. ORDINANCE NO. 024504 Amending the Zoning Ordinance upon application by MSW Promenade, L.P., by changing the zoning map in reference to Lot 3, Block 8, Cullen Place Unit 1, from "R -1B" One -family Dwelling District with a "SP" Special Permit to "B-1" Neighborhood Business District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal referred to Item 21, and a motion was made, seconded and passed to open the public hearing on the following zoning case: 21. Case No. 0601-02. Braselton Land Ventures, Inc.- A change of zoning from an "R -1B" One - family Dwelling District to an "R -1C" One -family Dwelling District on Flour Bluff and Encinal Farm and Garden Tracts, Section 11, being 6.402 acres out of Lots 3 and 14, located on the southwest corner of Dunbarton Oak and Patti Drives. City Secretary Chapa said the Planning Commission and staff recommended approval of the "R -1C" One -family Dwelling District. No one appeared in opposition to the zoning change. Mr. Chesney made a motion to close the public hearing, seconded by Mr. Kinnison, and passed. Mr. Chapa polled the Council for their votes as follows: ORDINANCE NO. 024505 Amending the Zoning Ordinance upon application by Braselton Land Ventures, Inc., by changing the zoning map in reference to 6.402 acres out of Lots 3 and 14, Section 11, Flour Bluff and Encinal Farm and Garden Tracts, from "R -1B" One -family Dwelling District to "R -1C" One -family Dwelling District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. An emergency was declared and the foregoing ordinance passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Minutes - Regular Council Meeting July 17, 2001 Page 17 Mayor Neal opened discussion on Item 35, Coastal Bend Regional Water Planning Group representative. Council Member Longoria nominated Council Member Mark Scott to that committee, seconded by Council Member Kelly. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 35. RESOLUTION NO. 024507 Resolution nominating Mark Scott as a representative to the Coastal Bend Regional Water Planning Group (CBRWPG) to represent municipal interests. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, and Noyola voting "Aye"; Scott abstaining. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 34, Rincon Bayou Diversion Project. Mr. Kevin Stowers, Assistant Director of Engineering Services, said this project is designed to provide relief from the mandatory estuary water release program. He said this is the first contract that is being undertaken. Council Member Scott asked about the time table. Mr. Massey said the deadline for this project is the end of December. Mr. Stowers said this is a small project and will involve approximately 30 days of actual construction time. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 34. M2001-273 Motion authorizing the City Manager or his designee to execute a construction contract in the amount of $74,300 with Gallagher Construction of Corpus Christi, Texas for the Rincon Bayou Diversion Project-Nueces River Overflow Channel Site Improvements Project. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal called for petitions from the audience. Mr. Jose Marroquin said that according to the city's financial statements, the total amount of unrestricted funds from the Utility Fund for FY 1999-2000 was approximately $134 million and for FY 2000-01 it was $194 million. He said utility customers are paying a high price for service. Mr. Sirfrederickvon Eugenius King VII, 5901 Weber Rd., #2413, discussed an incident that occurred on January 13, 2001. He said a uniform police officer saved his life by performing CPR and he asked that the officer receive an award. Mr. King said another officer accidentally hit him in the head with a stun gun, for which he suffered a concussion due to electric shock. He said the city is Minutes - Regular Council Meeting July 17, 2001 Page 18 contending he had a seizure. Mayor Neal asked staff to meet with Mr. King about his concerns. Mr. J.E. O'Brien said the Council meetings were turning into marathon sessions and he suggested that presentations be eliminated during Council meetings. He said instead they should comply with the City Charter and receive information during workshops. Mr. Jack Gordy said the Code Enforcement Office was informed about the exact location of illegal political signs on Crosstown Expressway. He also referred to a letter from a TXDOT official regarding enforcement of the state law regarding signs, and he asked how long Cooper Advertising will be allowed to illegally advertise on bus benches located in the rights-of-way. Mr. R.F. Hasker, 1813 Wallace, said the use of the new Garden Senior Center is not equitable in that two-thirds of the building still belongs to the Garden Club. Mayor Neal said the building is designed to be used by both senior citizens and Garden Club members and he asked that Mr. Tony Cisneros, Director of Park and Recreation, look into that issue. Mr. Trian Serbu, 14310 Playa del Rey, read a letter from Opus which stated that the board of that organization strongly recommended that the city locate the new arena on the land offered by the Port of Corpus Christi and not on the bayfront next to the convention center. He listed several reasons why the board felt the port location was preferable, including traffic concerns, improving a blighted area, and giving the convention center room to expand. Mayor Neal asked that an Opus representative be included in future meetings about the arena construction. He said the port was offering their property in exchange for a deed to the barge dock and a share of the arena profits, among other things. He said there are many reasons why the Council chose to locate the arena next to the convention center, which they have been discussing for a long time. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 28, first reading of the proposed FY01-02 operating budget. The Mayor said that last week he made a motion to table the budget item to allow for further discussion of the transfer of costs for the city's portion of the operation of the City -County Health Department. He said there is a possibility that the operation of that department will be transferred to Nueces County and/or the Nueces County Hospital District. He said a proposed memorandum of understanding was previously distributed to the Council which addresses several issues and, if approved, it will be delivered to the Commissioner's Court tomorrow for their consideration. Mr. Mark McDaniel, Director of Management and Budget, said pages 242 and 243 of the agenda packet constitute a reconciliation of the base ordinance that is before the Council on first reading. He said it includes the Health Department item, which is listed as a revenue from the county (as opposed to a savings) but the net effect is the same. Mr. McDaniel said Item 28 includes the proposed budget that was submitted by the City Manager on May 29th; all the fee ordinances which the Council was considering at this meeting; and the motion the Council approved on June 26th which balances current year General Fund revenue with current year expenditures. He said on page 244 there is a proposed motion, which could be approved in addition to the ordinance, which takes T Minutes - Regular Council Meeting July 17, 2001 Page 19 into account the items the Council preliminarily took action on pending the funding. Council Member Kinnison said the budget the Council is being asked to pass has a four -cent tax increase in it. City Manager Garcia said the 0.9 cent amount is under the tax cap and 3.1 cents is outside the tax cap because it is for projects approved by the voters last November. He added that the city will not know what the values are until the tax rolls are released by the appraisal district. Mr. McDaniel said he expects to receive that information this week. Responding to Council Member Noyola, Mr. Garcia said the four -cent increase will be on the ad valorem property taxes and the 2% increase will be on the utility rates. Mayor Neal called for public comment. Mr. J.E. O'Brien said he opposes the proposed budget for several reasons. He said he has a city document that shows the debt service on the voter -approved bonds last November for the year ending 7-01-02 should be .019568 (less than two cents). He said the proposed General Fund budget is almost 10% higher than last year and the proposed total budget is $60 million higher. He discussed differences in what the voters were told prior to the election pertaining to the property tax increase versus what is being proposed. Mr. O'Brien said he would like to see some reductions in spending, such as in the Council's or Mayor's budgets. Mr. Kinnison asked that the city's bond counsel provide a written explanation regarding the allocation of the four -cent tax increase. Referring to Mr. O'Brien's comments, Deputy City Manager Noe said there are a number of areas in the proposed budget where staff is appropriating one-time resources, such as excess revenues in the Utilities fund balance, rather than issue new debt. He said the "pay-as-you-go" capital projects are also included in the budget. He said in the General Fund there is a change in how the city accounts for grants. Mayor Neal said there are also programmed increases in the fire and police departments. Mr. Jack Gordy said the Council and staff made many assumptions about the budget before they have been realized, such as with regard to the Health Department issue. Mayor Neal pointed out that there are two readings of the budget and if the Health Department proposal is not approved, next week the Council and staff will find a way to fund it. He said the purpose of that proposal is to save the taxpayers money by consolidating services and these discussions were initiated over a year ago. Council Member Scott reiterated his request that staff work with the Police Department to expedite the reduction in the number of police captains and assistant chief positions. Mr. Garcia replied that he spoke with the Police Chief that morning about the department's organizational structure and changes that need to occur. Mayor Neal commented on the goals of the proposed budget, many of which are long overdue, including a cost of living increase and merit adjustments, shift differential pay, improved street and park maintenance, enhanced public safety, long-term water planning, and re-engineering for improved service. He said the whole budget process needs to be debated out in the open as the Council has done. Council Member Chesney said he was surprised about Mr. O'Brien's suggestion regarding workshops, saying that these discussions need to be held during the regular Council meetings. Referring to a fax he received from the United Steel Workers of America, he said he Minutes - Regular Council Meeting July 17, 2001 Page 20 believes the Council is committed to city employees. Responding to Mr. Scott, Mayor Neal said the proposed memorandum of understanding with the county is based on a commitment for one year subject to arriving at a final solution to the problem some time within the next few months. Mr. Scott asked if the additional electric franchise fee revenue is a one-time line item, and Mr. McDaniel said it is. Mr. Scott expressed concern about such one-time revenues, which he said gives a false sense of security. Mr. Garcia said those line items were basically offset by one-time expenses. He further explained the situation regarding the Health Department. Mr. Scott said he wants the Council to take care of city employees but he is not sure that increasing the ad valorem tax rate is in line with some commitments he made to the public. Council Member Noyola also asked about the Health Department issue, including the timing of the proposal, which Mr. Garcia discussed. Mayor Neal said the city would not have entered into that endeavor had they not felt confident over the course of the year that it was a sound proposal and that an agreement could be reached. Mr. Kinnison requested copies of the studies regarding the Health Department proposal. Council Member Garrett made a motion to approve the resolution relating to the city budget and the memorandum of understanding with Nueces County (Item 28.a.); seconded by Council Member Colmenero. There were no comments from the audience. The vote was called as follows: 28.a. RESOLUTION NO. 024508 Authorizing the City Manager or his designee to execute a Memorandum of Understanding with Nueces County and Nueces County Hospital District regarding the operation and funding of the City of Corpus Christi-Nueces County, Texas Public Health District. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Mayor Neal said page 244 of the agenda contains adjustments in the amount of $332,194 which results in a new adopted first reading of the budget in the amount of $142,722,291 in revenues and $142,722,291 in expenditures. Referring to the item regarding the Buccaneer Days and Bayfest events, Council Member Kelly said he understood that the Council was amending the budget to allow a 50% discount on those city fees that the city gives 100% discount to festivals and events that do not charge the public. He asked if the city is giving any type of discount for city services that free carnivals are charged for. Mr. Garcia said there was a List of fees that were paid by the Buccaneer Commission and Bayfest and a motion was made to give a 50% discount on those fees. Mr. Kelly said he was specifically asking about the solid waste fee. Mr. Garcia said he did not think the motion that the Council passed included an exemption for the solid waste fee. Mr. Kelly made a motion to provide for a 50% cost reduction for those city services that the Minutes - Regular Council Meeting July 17, 2001 Page 21 free carnivals and events are not paying for. With regard to Buc Days and Bayfest, Mayor Neal said he would prefer that the Council make one-time adjustments for the FY01-02 budget and then consider the entire policy during a future Council meeting. Mr. Garrett said when he made the motion on June 26th pertaining to Buc Days expenses, his intent was to deal with the policy because that festival has already occurred and the bills have already been paid. Mr. Garcia said that for events that require a city permit, if they are free to the public the city provides police services but the event organizers still have to pay for solid waste services if they are required. Council Member Longoria said many of the "on -the -spot" carnivals do not benefit anyone other than themselves. He added that he helped implement that policy, which was intended to address the high expenses that were incurred by such events as Buc Days and Bayfest. Mr. Chesney suggested that the Council try to approve the budget on first reading and deal with that and several other issues next week. Mr. Longoria agreed with the Mayor that the policy issue should be addressed separately. Mr. Chesney said his and Mr. Garrett's intent in the original motions was to make a policy change. Mr. Kelly withdrew his motion to amend the adjustments based on the Council's conversation. The Mayor said they will place an item on the agenda to discuss the policy. Referring to page 244 regarding the adjustments, Mr. Longoria made a motion to vote on the adjustments individually. The motion died for lack of a second. Mayor Neal called for additional public comment on Item 28. Mr. J.E. O'Brien said that in 22 years, this is the first city budget where there is over a $14 million shortfall. In order to balance the budget, the city is taking revenues out of fund balances. He said that figure will be reduced somewhat because the increase in valuations will probably be higher than budgeted. Mr. Noe said the Utility Fund budget includes about $12 million in one-time capital improvements out of the fund balances instead of issuing debt and about $1 million for vehicle and building improvements out of the Maintenance Services Fund. He said that will save the tax payers over the long term. City Attorney Bray said the fund balances are available revenues within the meaning of the Charter and can be used to balance the budget. City Secretary Chapa polled the Council for their votes on a motion to amend Item 28 prior to first reading by adjusting figures as presented by staff. The motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Noyola, and Scott voting "Aye"; Kinnison and Longoria voting "No." Mr. Chapa then polled the Council for their votes on the amended ordinance as follows: 28. FIRST READING ORDINANCE Ordinance adopting the City of Corpus Christi Budget for the ensuing fiscal year beginning August 1, 2001; to be filed with the County Clerk; appropriating monies as provided in said budget; and providing for severance. The foregoing ordinance passed on first reading, as amended, by the following vote: Neal, Chesney, Colmenero, Garrett, and Scott voting "Aye"; Kelly, Kinnison, Longoria, and Noyola voting "No." Minutes - Regular Council Meeting July 17, 2001 Page 22 * * * * * * * * * * * * * Mayor Neal opened discussion on Item 29 regarding the Compensation and Classification Plan. Ms. Cynthia Garcia, Director of Human Resources, said the proposed ordinance the Council received last Friday included a proposal to give grant -funded employees an at -will status. She said that after receiving input from other directors, staff is recommending that that provision be deleted from the proposed ordinance. Mayor Neal called for public comment. Mr. J.E. O'Brien said he objects to this ordinance, specifically the proposed new Subsection 850.2. He said the Council recently approved a salary increase for the City Manager and he said he did not think it was appropriate to increase his power as well. He said in 1945 an election was held in Corpus Christi to go to a Council -Manager form of government. He said the Police Chief at that time was against the proposal and when it passed he resigned because he said it gave too much power to the City Manager. Mr. O'Brien said the proposed new subsection results in "double- dipping" for city executives and there is a legal question regarding IRS regulations. Mr. Bray replied that the provision with respect to the Council members is specifically limited in that it has to be reasonably related to official city business and to expenses actually incurred. He said it also has to be a reimbursement, which means that it is not income for income tax purposes. Mr. Jack Gordy said he is also opposed to Item 29 for basically the same reasons Mr. O'Brien stated. He said the Council members are not employees of the city; rather, they are officers of the city. He said this is compensation in lieu of wages. Mr. Gordy also questioned the justification for the City Manager's and the City Secretary's car allowances and he commented on the lower price of gas, which he said reduces the cost of operating a car. Mayor Neal said he is aware that if this item passes, he and the Council members will receive an increase in their car allowances and he will not blame or give credit to the City Manager for it. Mayor Neal made a motion to amend Item 29 to delete the phrase "and grant -funded positions" as stated by Ms. Garcia; seconded by Mr. Colmenero, and passed. City Secretary Chapa polled the Council for their votes as follows: 29. FIRST READING ORDINANCE Approval of Ordinance amending Ordinance 3658, as amended, Section 100, Subsection 103, adding the principal secretary to the mayor as at -will exceptions to the Classified Service; approval of Ordinance amending Ordinance 3658, as amended, Section 250, Subsections 251 through 257, by revising these classification schedules as reflected in Exhibit A; approval of Ordinance amending Ordinance 8127, as amended, Section 500, Subsection 501, by deleting the Classified Salary Schedule effective FY 2000-2001, and replacing it with a new schedule effective August 13, 2001, that provides a 3% cost -of -living increase for Classified Employees and adjusts salary ranges by 3%, effective August 13, 2001, as shown in Exhibit B; approval of Ordinance amending Ordinance 8127, as amended, Section 510, by deleting t Minutes - Regular Council Meeting July 17, 2001 Page 23 the Managerial Group Pay Plan for FY 2000-2001, and replacing it with a new Managerial Group Pay Plan pay schedule effective August 13, 2001, that provides a 3% cost -of -living increase for Managerial Group Employees and adjusts salary ranges by 3%, as shown in Exhibit C; approval of Ordinance amending Ordinance 8127, as amended, Section 520, by deleting the Executive Pay Plan FY 2000-2001, and replacing it with a new Executive Pay Plan schedule effective August 13, 2001, that provides a 3% cost -of -living increase for Executive Pay Plan Employees and adjusts salary ranges by 3%, as shown in Exhibit D; approval of Ordinance amending Ordinance 8127, as amended, Section 700, to add a new Subsection 707.2 to define eligibility of employees to participate as retirees in city's group health insurance program; approval of Ordinance amending Ordinance 8127, as amended, Section 700, adding a new Subsection 707.3, to provide authority for City Manager to authorize up to $8,000 in documented funeral expenses for employees who lose their lives while on duty due to on-the-job injuries; approval of Ordinance amending Ordinance 8127, as amended, Section 700, by adding a new Subsection 708.4 to authorize a Shift Differential Pay Program; approval of Ordinance amending Ordinance 8127, as amended, by adding a new Section 714, to clarify add-on pays for Police and Fire Chiefs in compliance with State Law, Chapter 143; approval of Ordinance amending Ordinance 8127, as amended, Section 850, to revise Subsection 850.1 and add a new Subsection 850.2 providing for car allowances for officers and employees in the Executive Pay Plan based on market conditions and travel expenses and providing for car allowances for council members based upon reasonable travel expenses incurred. The foregoing ordinance passed on first reading, as amended, by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal called for a short recess. Upon reconvening, he opened discussion on Item 30 regarding utility rate increases. Mr. Cruz-Aedo said staff has been working to validate the rate model to ensure that the utility rates are sufficient to collect the necessary revenues. Mr. Cruz-Aedo said the average residential usage in the city is 7,000 gallons of water and 3,000 MCF of gas. Based on those amounts, the proposed 2% increase in water, wastewater and gas rates will impact utility customers as follows: water - $14.74 currently and $15.02 proposed; gas - $14.75 currently and $15.04 proposed; and wastewater - $24.02 currently and $24.50 proposed. Consequently, the average current total bill for all three utilities is $53.51 and the proposed total bill is $54.56. Mr. Cruz-Aedo said the ordinance also includes a proposal to eliminate the security deposit for new customers and only charge it if a customer's account goes into arrears and becomes delinquent. Staff is also recommending a new on -demand fee for service and a change to the reconnection fee. There were no comments from the audience. Responding to Council Member Kinnison, Mr. Cruz-Aedo said the rate model holds the cash balances stable for about two years and in the outer years they begin to decrease. He added that staff intends to review the rate model with the Council in the future. Minutes - Regular Council Meeting July 17, 2001 Page 24 In reply to Council Member Noyola, Mr. Cruz-Aedo said the impetus for the proposed increases is the capital improvement program, which he explained. He said all of the Utility Fund's income (including interest income) and expenses are calculated in the rate model. Mr. Noyola said his constituents have asked him to not support the proposed rate increases. Council Member Longoria pointed out that the capital improvement projects will benefit the citizens. City Secretary Chapa polled the Council for their votes as follows: 30. FIRST READING ORDINANCE Ordinance amending the Code of Ordinances, City of Corpus Christi, Chapter 55, Utilities, regarding water, gas and wastewater rates; providing for an effective date. The foregoing ordinance passed on first reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, and Scott voting "Aye"; Noyola voting "No." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 31, Health Department fees. Mr. Roger Barker, Assistant Director of Public Health Administration, reviewed the proposed fee increases. He said the intent of the increase in the pet license fee for "whole" (non -neutered or spayed) animals is to encourage people to have their pets neutered or spayed in order to control the pet population. He said the increases in the other fees are intended to recover the costs associated with those services. Responding to Council Member Chesney, Mr. Barker further explained the purpose of the higher pet license fee. Mr. Garcia discussed issues concerning the pet licensing process that need to be addressed in the future. Council Member Scott said he thought the fee to service privately owned traps penalized the trap owners. Mr. Barker said that fee will only be charged if the trap is serviced in the field; there is no charge if the owner brings his trap to the Animal Control facility to be serviced. Mr. McDaniel said the anticipated revenue is $7,500. A brief discussion ensued. Mr. Barker pointed out that one animal control officer is having to spend almost all his time servicing the large number of traps being used. There were no comments from the audience. Mr. Chesney made a motion to amend Item 31 to delete the pet license increase. The motion died for lack of a second. City Secretary Chapa polled the Council for their votes as follows: 31. FIRST READING ORDINANCE Ordinance amending Sections 6-10, 6-18, 23-20 and 23-57 of the City Code of Ordinances to increase the following annual fees: Pet Licenses from $10 to $15; Rodeo Commercial Animal Permit fee from $50 to $200; sewage inspection fee from $60 to $200; Property Swimming Pool Inspection fee from $25 to $50; amending Section 6-25 of the City Code of Ordinances to create a new annual fee of $25 for service of privately owned small animal traps; providing for an effective date. r Minutes - Regular Council Meeting July 17, 2001 Page 25 The foregoing ordinance passed on first reading by the following vote: Neal, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney voting "No." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 32, marina delinquent penalty charge. Mr. Cisneros said this fee has not been adjusted since 1983. He said the current fee of $3.00 is not sufficient to discourage late payments by marina tenants and the proposal is to raise it to $50.00. In response to Mayor Neal, Mr. Garcia said the Water/Shore Advisory Committee actually increased staffs original recommendation. There were no comments from the audience. Assistant City Secretary Juarez polled the Council for their votes as follows: 32. FIRST READING ORDINANCE Ordinance amending Code of Ordinances, Section 12-79(e) to increase the delinquent penalty charge for marina tenants. The foregoing ordinance passed on first reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 33, park and recreation fees. Council Member Garrett questioned the Heritage Park tour fee, which Mr. Cisneros explained. There were no comments from the audience. Assistant City Secretary Juarez polled the Council for their votes as follows: 33. RESOLUTION NO. 024506 Resolution authorizing Park, Recreation, Cultural and Leisure Time Activities Rental Fee and Recreational Fee Increases; adding new rental fees and recreational fees. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 36. WITHDRAWN LaiiLancc aLLLcna,ng ttL .., ...plaLc v vt v1dLncLLccs, LLt)' OI I,OLpuS I;nL LSIL, LlmpIcf L, cfl atian Advisory Com,nitt�e o4 ith the Water I.SOU�[.W HaVLSULV l.OULRntLLA.. * * * * * * * * * * * * * Mayor Neal called for the City Manager's report. Mr. Garcia said the second reading of the budget is scheduled for July 24th and the meeting after that is scheduled for August 21st. Minutes - Regular Council Meeting July 17, 2001 Page 26 The Mayor asked about beach cleaning. Assistant City Manager Tom Utter explained that about $100,000 a year is paid to Nueces County from the city's General Fund to clean the area north of Padre -Balli Park to north of the seawall and this year it also includes J.P. Luby Park. He said there is also a small area north of the state park that the city has annexed. He said there are no hotel -motel taxes that the city currently collects that are eligible for beach cleaning, which he explained. Mayor Neal asked the Council to submit their names for appointment to the Sesquicentennial Committee. He then called for Council concerns and reports. Mr. Chesney asked if the city owns 53 acres of land at the corner of Old Brownsville Road and South Padre Island Drive. Mr. Utter replied that the city does not own that land. Mr. Chesney asked Mr. Cisneros to continue on the parks funding initiative and he echoed Mr. Garrett's previous comments about how the Council received the solid waste proposals late on Friday. Mr. Scott asked about the status of the Weber Road resurfacing project. Mr. Escobar said the contractor is bringing the manholes and valve boxes up to grade, which is the last portion. Regarding the Alameda Street project, Mr. Escobar said the asphalt work is to be completed by mid-August and there will be another 30 to 45 days of manhole adjustments; Santa Fe is scheduled to be completed about a week later. Mr. Kelly stated that the Corpus Christi Firefighters Association was able to land the convention in Corpus Christi in two years. Mr. Noyola asked about the possibility of changing the city's fiscal year. The Mayor said that was one of the issues raised during the Council's retreat and staff is reviewing that issue as they enter the next budget cycle. Mr. Noyola said there are some businesses on Linda Vista that are not taking care of their rights-of-way. There being no further business to come before the Council, Mayor Neal adjourned the Council meeting at 8:07 p.m. on July 17, 2001.