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
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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
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* * * * * * * * * * * * *
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.