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HomeMy WebLinkAboutMinutes City Council - 05/27/2003I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Regular Meeting of the Corpus Chr sti City Council of May 27, 2003, which were approved by the City Council on June 10, 2003. WITNESSETH MY HAN SEAL AND SEAL, this 8th day of October 2003. Armando Chapa City Secretary MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting May 27, 2003 - 1:24 p.m. PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Henry Garrett Council Members: Brent Chesney Javier D. Colmenero Melody Cooper Bill Kelly Rex A. Kinnison Jesse Noyola Mark Scott Mayor Neal called the m invocation was delivered by Min Allegiance to the United States fla called the roll and verified that the were present to conduct the meetin retreat on May 6, 2003 and the reg passed to approve the minutes as City Staff: City Manager George K. Noe Acting City Attorney R. Jay Reining Assistant City Secretary Mary Juarez Recording Secretary Rebecca Huerta eting to order in the Council Chambers of City Hall. The ster Napoleon Johnson of Faith Ministries and the Pledge of was led by Mayor Loyd Neal. Assistant City Secretary Juarez ecessary quorum of the Council and the required charter officers . Mayor Neal called for approval of the minutes of the council lar Council meeting of May 20, 2003. A motion was made and esented. Mayor Neal called for conideration of the consent agenda (Items 2-17). Assistant City Secretary Juarez stated that Counc 1 Member Noyola would be abstaining from discussion or vote on Items 7 and 15. Council mem ers requested that Items 4 and 8 be discussed. There were no comments from the audience. A knotion was made and passed to approve Items 2 through 17, constituting the consent agenda, except for Items 4 and 8, which were pulled for individual consideration. Assistant City Secretary Juarez polled the Council for their votes and the following items passed by the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye" (NOTE: Noyola abstained on items 7 and 15; an emergency was declared for items 6a, 10b, 13, 14a6 and 15). 2. MOTION NO. 2003-193 Motion approving a supply agreement with Cintas Corporation, of Corpus Christi, Texas, for work uniforms which iicludes approximately 1,777 work pants, 2,439 work shirts, 59 coveralls, 1,243 T-shirts, 618 jersey knit shirts, 1,778 denim jeans, and 250 jackets, in accordance with Bid Invitation No. BI -0068-03 based on best bid for an estimated annual expenditure of $102,219.86 of which $25,554.96 is for FY2002-2003. The term of the contract shall be for twelve months with an option to extend for up two additional twelve month periods subject to the approval of the supplier and the City Manager or his designee. Funds have been budgeted' by the using departments in FY2002-2003. Minutes - Regular Council Meeting May 27, 2003 - Page 2 3. MOTION NO. 2003-194 subject to the approval of been budgeted by the Gas 5. MOTION NO. 2003-196 iI agreement with Gajeske Inc., of San Antonio, Texas, for of polyethylene pipe and 5,080 fittings in accordance with Bid 3 based on low bid for an estimated annual expenditure of 07.21 is for FY2002-2003. The term of the contract will be for on to extend for up to two additional twelve-month periods t e supplier and the City Manager or his designee. Funds have epartment in FY2002-2003. Motion approving a Supp approximately 143,000 feet Invitation No. BI -0096-0 $138,828.94 of which $34, twelve months with an op ' Motion authorizing the City Manager or his designee to execute Change Order No. 3 to the construction contract with W.T. Young Construction Company of Corpus Christi, Texas in the amount of $115,822 for wastewater and stormwater improvements along Annaville Road and Starlite Lane. (BOND ISSUE 2000) 6.a. ORDINANCE NO. 0253131 Ordinance appropriating $1 298,163 in unappropriated interest from the following funds for the Laguna Madre Service Collection System Rehabilitation Phase 1: $33,291.40 from Wastewater Fund No. 3433 (1990 GO/CO CIP Fund); $198,048.36 from Wastewater Fund No. 4241 (1995 Revenue Bond); $71,885.35 from Wastewater Fund No. 4244 (2002 Revenue Bond); $196,12244 from Wastewater Fund No. 4500 (Commercial Paper Fund); and $798,815.85 from Wastewater Fund No. 3430 (Wastewater CIP Fund); amending Capital Budget adopted by Ordinance No. 025144 to increase appropriations by $1,298,163. 6.b. MOTION NO. 2003-197 Motion authorizing the City Manager or his designee to execute a construction contract with Insituform of Chesterfield, Missouri, in the amount of $1,298,163 for the Laguna Madre Service Area Collection System Rehabilitation, Phase 1. 7. MOTION NO. 2003-198 Motion authorizing the City Manager or his designee to execute Change Order No. 45 with Fulton/Coastcon, Inc., A Joint Venture, in the net amount of $425,410.87 for Corpus Christi International Airport New Terminal Building for concrete and structural steel for the retail and Transportation Security Administration lease areas and an exterior finish system for the Air Cargo Building. 9.a. MOTION NO. 2003-200 Motion authorizing the City Manager or his designee to execute Attachment No. 07A to Contract No. 7460005741-2003. This is contract change notice No. 05 with the Texas Department of Health in the amount of $7,542 to update technology needed for a Level B Laboratory. This additional $7,542 will bring the grant total to $136,104. Minutes - Regular Council Meeting May 27, 2003 - Page 3 9.b. ORDINANCE NO. 025314 Ordinance appropriating a grant in the amount of $7,542 from the Texas Department of Health in the No. 1050 Fe4eral/State Grants Fund for equipment to assist in upgrading technology needed in a Le • 1 B Laboratory. 10.a. MOTION NO. 2003-201 Motion authorizing the Ci Manager or his designee to accept grant in the amount of $10,000 from the Coastal tend Community Foundation for the Elderly Nutrition/Home Delivered Meals Program. 10.b. ORDINANCE NO. 02531 Ordinance appropriating grant in the amount of $10,000 from the Coastal Bend Community Foundation i the No. 1050 Federal/State Grants Fund for the Elderly Nutrition/Home Delivered eats Program. 11. RESOLUTION NO. 025316 Resolution authorizing the ity Manager or his designee to submit a grant application to the National Endowment for th Arts Fast -Track Review Grant for a Cultural Tourism Program in the amount of $10,000 or marketing the Festival of the Arts, with a City match of $10,000 in the No. 1030, Hbtel Occupancy Tax Fund, and a total project cost of $20,000. 12. RESOLUTION NO. 025317 Resolution amending Resplution Nos. 025160, 025159, 025123, and 025110 which authorized submission of grant applications to the State of Texas, Criminal Justice Division, to authorize the City Manager or his designee to accept, reject, alter or terminate the grants. 13. ORDINANCE NO. 02531 tt Ordinance authorizing the issuance of an Outdoor Music Festival Permit to Clear Channel Radio for "C -Sculptures", On the Gulf Beach at Newport Pass County Park. 14.a. ORDINANCE NO. 025319 Ordinance authorizing the City Manager or his designee to execute an eleven -month lease with Texas A & M University - Corpus Christi for the use of the area located adjacent to the northern most hobie cat launching ramp on North Beach and the area located on the north side of Ocean Drive right-ot way on Ward Island to extend the term of the lease to five years following the effective data of the lease and to include the use of a part of the area east of the public parking lot descrjibed as Padre Island - Corpus Christi, Section A, a subdivision of Padre Island, Nueces County, Texas as shown by map or plat thereof recorded in Volume 33, page 97, in consideration for the installation and operation of two CODAR Radio Towers and providing for the maintenance of the premises. Minutes - Regular Council Meeting May 27, 2003 - Page 4 14.b. FIRST READING ORDINNCE Authorizing the City Mana er or his designee to amend an existing five-year lease with Texas A & M University orpus Christi for the use of the area located adjacent to the northern most hobie cat lau thing ramp on North Beach and the area located on the north side of Ocean Drive right -o way on Ward Island to extend the term of the lease to five years following the effective date of the lease and to include the use of a part of the area east of the public parking lot descr bed as Padre Island - Corpus Christi, Section A, a subdivision of Padre Island, Nueces Co ty, Texas as shown by map or plat thereof recorded in Volume 33, page 97, in considcratio for the installation and operation of two CODARRadio Towers and providing for the maint-nance of the premises. 15. ORDINANCE NO. 025320 Second Reading Ordinanc= - Authorizing the City Manager or his designee to execute Amendment No. 2 to the lea e agreement with DTG Operations, Inc. f/k/a Dollar Rent A Car Systems, Inc. at the Corpus hristi International Airport, to hold harmless DTG Operation, Inc. for any environmental ontamination occurring prior to occupancy of the premises for the term of the long term le se. (First Reading - 4/29/03) 16. ORDINANCE NO. 025321 Second Reading Ordinance i Amending Sections 23-70 and 23-71 of the Code of Ordinances relating to notice and obtaining liens for City expenses to remedy violations; providing for an effective date. (First Reading - 5/20/03) 17. ORDINANCE NO. 025322 Second Reading Ordinance - Amending the Zoning Ordinance by revising Article 13, `B - 2A" Barrier Island Busines$ District. (First Reading - 5/20/03) Mayor Neal opened discu Sion on Item 4 regarding a supply agreement with Mueller Company for fire hydrants. Councl Member Noyola asked why the bids by local companies were so much higher than the bid from Mueller Company. Michael Barrera, Director of Materials Management, replied that since Mu011er Company is the actual manufacturer of the product, it is able to offer a lower price. The local Oompanies were merely distributors of the product. Council Member Noyola emphasized that the city should try to use local companies as much as possible. Assistant City Secretary Juarez pol ed the council for their votes, and the following motion passed with the following vote: Neal, Cheaney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 4. MOTION NO. 2003-195 Motion approving a supply :agreement with Mueller Company of Decatur, Illinois, for fire hydrants in accordance withBid Invitation No BI -0066-03 based on low bid for an estimated annual expenditure of $61,$35 of which $15,334 is for FY2002-2003. The term of the supply agreement will be for twelve months with an option to extend for up to two additional Minutes - Regular Council Meeting May 27, 2003 - Page 5 twelve-month periods, subj ct to the approval of the supplier and the City Manager or his designee. Funds are availa le from Warehouse Inventory for FY 2002-2003. Mayor Neal opened discission on item 8 regarding a contract with Credit Systems International, Inc. (CSII) to collect if this was a reputable company. indicates that the company was municipalities and was committed t aback when there were no response cities on how they handled delinq with a number of them. In response delinquency rate was 4% to 5%. scheduled to take over. Ms. Dumb June 2003. Assistant City Secreta ordinance passed with the follow. Kinnison, Noyola and Scott, votin 8. MOTION NO. 2003-199 elinquent utility accounts. Council Member Colmenero asked Ms. Lee Dumbauld, Director of Finance, said their research ollecting significant levels of delinquent accounts in other good customer service. She added that staff was initially taken to the city's RFP for this service. However, after polling other nt accounts, staff found that CSII had successfully contracted o Mr. Colmenero's question, Ms. Dumbauld said that the city's ouncil Member Kinnison asked when the new company was uld responded that the company was scheduled to take over in Juarez polled the Council for their votes, and the following g vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, "Aye". Motion authorizing the Ci Manager or his designee to execute a contract with Credit Systems International Inc., f Dallas, Texas to collect delinquent utility accounts handled by the Financial Services epartment. Mayor Neal recessed the meting a 1:40 p.m. to read proclamations. The Council returned from recess. Mayor Neal referred to the presentations on the day's agenda. The first presentation wa a quarterly update from the Convention and Visitors Bureau (CVB). Mr. Bert Quintanilla, Chai an of the Convention and Visitors Bureau Board of Directors, provided an update on the tourism industry in Corpus Christi. Mr. Dave Prewitt, member of the CVB board, provided an update on the convention business. Mr. Dan Viola, CVB board member, informed the Council on upcoming events in the area of sports and entertainment. Finally, Mr. Bill Pettus, marketing consultant, provided an update on the successful targeted marketing program to Monterrey, Mexico, headed by the Hispanic Chamber of Commerce. Finally, Mr. Quintanilla apprised the Council on developments in the city's national television exposure and improvements to the CVB's website. Mayor Neal commented that the Council stood ready to assist the CVB as spokesmen in their marketing efforts. Council Membgr Scott asked for data on hotel occupancy vs. revenues, which Mr. Quintanilla said would be provided. Mr. Scott also asked staff to dispel the rumor that the new arena will not be large enough to accommodate the rodeo. City Manager Noe confirmed that the rodeo would in fact fit in the new arOna. Finally, Council Member Scott asked if arrangements could be made to bring the San Antonio Spurs to the city for an exhibition game or basketball clinic. Mr. Dan Viola replied that he has met with the Vice -President of the San Antonio Spurs and it may be possible in Fall 2005. Council Member Noyola added that baseball exhibition games would also Minutes - Regular Council Meeting May 27, 2003 - Page 6 be welcome. Council Member Chesney and Council Member Colmenero spoke in support of the CVB's progress. Council Member Cooper also spoke in support of their progress, but asked if the CVB was still partnering with San Antonio in their marketing campaign. Mr. Quintanilla said that they were not at this time, but would look into t. Council Member Kelly commented that he had seen a article on Corpus Christi in Southern Livi g magazine and thought it was very positive. The last presentation on the Ms. Lee Dumbauld, Director of Fin for Fiscal Year 2003. She said t summaries, Workers' Compensatio historic financial statement inform. million since 1993, totaling $ l4 mil management fund at the close of bu that will not be paid out for many was prepared on a cash-flow basis, condition. Both Mayor Neal and C. comprised of unfunded liabilities th stated that he would like to see the there was not a deficit balance show in 2001 with a deficit of approxi Dumbauld replied that the city had 1 Ms. Dumbauld said that staff would agenda was the Risk Management Services quarterly update. nce, gave an update on the status of the risk management funds t the presentation was divided into four sections: financial , General Liabilities and Health Benefits. Under the detailed tion, she pointed out that current assets have increased by $7.8 ion in 2002. She said that although a deficit is shown in the risk iness on July 31, 2002, the deficit includes long-term liabilities ears to come. Ms. Dumbauld stated that the budget document nd in that respect the risk management fund was in very good ncil Member Kinnison observed, however, that the deficit was t would eventually have to be paid. Council Member Kinnison city begin to fund these types of liabilities more effectively so n. He said that at one time the city had almost reached that point mately $600,000, but now the deficit was $3 million. Ms. peen in much worse shape in the past. To address this concern, budget using a higher expected value to remove the deficits over time. City Manager Noe added thet staff was using more conservative figures than in the past, accounting for more liabilities than might be anticipated. Ms. Dumbauld then revie ed the Workers' Compensation fund. She said that most importantly, the city has been redu ing the number of claims that are occurring and being reported over the past several years. She re inded the Council that all incidents must reported, according to state law, which was not an indiction that all of the incidents were serious. However, she stated that although the number of claims filed has decreased, the incurred cost was increasing. She commented that this same trend can be seen in general liabilities and health benefits. Council Member Scott observed that the increase was dramatic, and asked what the city was doing to address this problem. Ms. Dumbauld said'that the city has hired a new safety coordinator in the current budget year. She reported that staff was in the process of reviewing the city's safety policies and was developing detailed safety plafts in conjunction with each department. Ms. Dumbauld also referred to a graph on the Consumers Price Index (CPI) to demonstrate that medical inflation has increased significantly on a nationwide basis. Regarding general liabilities, Ms. Dumbauld said that the same trend can be observed. She reported that while the number of claims has decreased significantly, the cost per claim has increased. Council Member Kinnison noted that the Police Department had the largest number of claims. Ms. Dumbauld confirmed' this, saying that the largest number of claims occurred in the general property damage category. Turning to the health benefits section of the presentation, Ms. Dumbauld said that staff Minutes - Regular Council Meeting May 27, 2003 - Page 7 completed a detailed analysis at different levels (per claim, per participant, and per plan) to find problem areas. The first area of an lysis was enrollment levels, and staff found it to be very stable. Thus, she concluded that the increase in claims activity was driven not by the number of participants, but rather by the cost Of medical care. Staff also analyzed data per plan to determine whether the increases were drive concluded that the number of clai said that the highest costs were ex participated in this plan. By the sa remained consistent. Having completed this deta to plan for the upcoming fiscal year an increase of 14.5% for FY 02-03 • by a claim incidence issue or a dollar incidence issue. She s and the dollar value of claims are relatively consistent. She ended in the Citicare plan because the majority of employees e token, the claims count and the claims dollars expended have led analysis, Ms. Dumbauld said that staff had to consider how The actuarial report completed in October 2002 recommended However, Ms. Dumbauld said that the city's tax results were so favorable in FY 02 that only a 3 V0 increase was recommended for FY 02-03. But beginning in Oct. 2002, the city's claims bega to increase dramatically, as forecast in the aforementioned actuarial report. The report had the recommended a 16.9% increase at that time. After doing some additional calculations, they came own to 14.5% for the current year. For this reason, in the 2004 budget, staff was recommending a 20% increase overall (23% in public safety) to compensate for this FY and to be properly funded s r FY 04. In response to Council Member Kinnison's question, Ms. Dumbauld responded that the actuary had only projected to FY 2004, but that claims were increasing about 12% annually nat onwide. Beyond this time frame, Ms. Dumbauld said that she wouldn't speculate. Council Member Kinnison was concerned that the proposed 20% increase would not cover expenses because staff appeared to be assuming that costs were going to remain stable. City Manager Noe replied hat staff would be proposing a number of changes to the plans that should result in lower costs a changes in utilization patterns. Mayor Neal opened discus program. City Manager Noe prefi informed that the Request for Pro proposers an opportunity to respoi followed, City Manager Noe recom action until the first week in June. ion on item 20 regarding the city's prospective health insurance ced the discussion for this item by saying that he was recently �osal (RFP) called for a five-day commentary period to allow d to the ratings generated. Since this procedure had not been vended that the Council receive the presentation today and delay Ms. Dumbauld introduced Mr. Keith McNeely, Vice -President ofMcGriff, Siebels and Williams, Ic., the city's health consultant. Ms. Dumbauld briefly described the RFP process, saying that staff teviewed the written proposals submitted by the proposers and used follow-up telephone calls for $dditional clarification. She said that both in-house and outside legal counsel reviewed the plan douments to ensure that they were in compliance with HIPAA and COBRA. Ms. Dumbauld reported hat the team was recommending the elimination of the Citicare Q -Plus plan because there were on)y two remaining participants. Mr. McNeely made a preseptation explaining the recommendations by the evaluation team. He said that his firm was retained in Spring 2002 to evaluate the city's health insurance program, primarily by developing the RFP process for obtaining proposals. The health care program would consist of network services, pharmacy benefit management services, third party administrator services and stop loss coverage (with bundled and/or unbundled options). Mr. McNeely said the response was very good overall. Mr. McNeely said that the evaluation team was cross -functional, including himself, senior staff from Human Resources, Finance, MIS, Risk Management and Purchasing. The team reviewed all the RFP responses using a "Best Value" team process. They Minutes - Regular Council Meeting May 27, 2003 - Page 8 developed evaluation criteria for each component of the insurance program, documented all the results based on this criteria, and thbn ranked the results. He said that the scoring was based on the proposer's experience within the public sector (10%), customer service (20%), technology and reporting (30%) and cost (40%). Mr. McNeely stated that th health care program evaluated. Chapman (85.4), Benefit Planners in a TPA fixed cost comparison, a the city's current TPA, Entrust. third party administrator (TPA) was the first component of the e evaluation team determined that, on a 100 -point scale, Boon TD (82.6) and Humana (77.5) scored the highest. He said that 1 three plans provided substantial savings in the first year over The second component eva uated was the network services provider. The team determined that Humana (95.0), Christus Spo scale of 100 points. Mr. McNeely basis, including both the Christus said that Humana has a broad base that the biggest key to the network will have as an employer is the cla Humana has guaranteed discounts they have achieved greater discou would be part of the Humana ne • (88.8) and Texas True Choice (74.1) scored the highest on a plained that the Humana network is established both on a local pohn system and the HCA system, and on a national basis. He physicians who support both hospital systems. He emphasized was their discount levels because the biggest expense the city ms paid out, approximately 85% of total costs. He stated that 60% on hospital and 40% on physician, noting that historically ts. Council Member Garrett asked how long Christus Spohn ork. Mr. McNeely answered that he understood there were approximately 18-24 months left o their contract. Council Member Garrett asked City Manager Noe if there was a way to include provision in the city's contract to require Humana to include Christus Spohn in their network fdr the length of the contract. City Manager Noe said he would discuss the matter with both partie$ to see if it was acceptable to them. Mr. McNeely provided an analysis of network savings between the Christus Spohn and Humana networks, concluding that the Humana network would provide p$ojected savings of approximately $1,019,000 in FY 03-04. The third component evaluated was the pharmacy benefit management service (PBM). The team determined that Humana -Advance PCS (97.6), Catalyst Rx (76.6) and Rx West (75.0) scored the highest on a 100 -point scale. Now that each component pf the health services plan had been rated using an unbundled approach, Mr. McNeely said that the next step in the process would be to determine how to bundle these elements together to providq a complete health plan. He stated that the city could either purchase health care from a major insurance company that possessed all the necessary components, or purchase each element separate*/ and then combine them into a package. The team developed a package evaluation matrix for comparison. Based on the "best value" methodology used by the team, they determined that the "best value" option was to purchase a bundled package from Humana, Inc. versus an unbundled package of Boon Chapman (TPA), Christus Spohn (network) and Catalyst RX (pharmacy). Mr. MdNeely stated that they used the following weightings in their evaluation, based on actual percentage of costs: TPA (6%), network (76%) and pharmacy (18%). He also noted that the cost analysis of the packages assumed an annual trend rate of 16% on in - network claims. He reported that the projected cost savings using Humana, Inc. was $5.4 million over a five-year period. Council Member Chesney asked Mr. McNeely how he would advise the Council on Minutes - Regular Council Meeting May 27, 2003 - Page 9 accepting the staff recommendation of Humana, Inc., but also address concerns about the breakup of Spohn and Humana. He asked r. McNeely how the Council could ensure that the two entities stay together yet not give one an u equal advantage. Mr. McNeely responded that Humana, Inc. had a large block of business in t is area and what drove the relationship between Spohn and Humana was the high volume that umana pumped into their hospital system. He felt that it was more than likely that the two entiti s would stay together. However, he could not guarantee this because of the volatility of the heal h care market as this time. City Manager Noe added that staff shared the Council's concern abou the status of the network in the long run. He said that part of the attractiveness of the Humana pr posal was that it brought both Spohn and HCA together as well as its national power. Mr. Noe said that Humana would provide more options for the employees at a lower cost. He said that staff had n interest in maintaining these advantages for their employees. He stated that staff would look int the issue and report back to council in June. Mr. McNeely added that the cost differential was actually more on the physician discounts, not the hospital discounts. In conclusion, Mr. McNeely stated that Humana, Inc. would be the team's recommendation for TPA,Inetwork services and pharmacy services. He reiterated the following reasons for their recommHndation: service capabilities; providing a local office; additional network provider access; discounts; and projected five-year cost savings of approximately $5.4 million. Mayor Neal stated that one Of the biggest concerns voiced by employees was that when there was a change in the insurance carriar, they would have to change physicians. Mr. McNeely replied that under the Humana plan, the ejnployees would probably not have to do this. Regarding the physician discount, Mayor Neal asked Mr. McNeely if the Council was being asked to assume that the physicians in Spohn's network would be willing to accept an additional 10% less money with the Humana plan. Mr. McNeely replied affirmatively. In response to Mayor Neal's question, Mr. McNeely said that if at the end of the two-year period, Spohn and Humana were not able to stay together, then the Spohn physicians would be considered out -of -network. Mr. Mark Taylor with McGriff et al commented that many] physicians are not exclusive to one network; rather, many have contracts with both networks. Council Member Scott asked Mr. McNeely to provide information in writing on his company's credentials as a consultijrg firm. Mr. McNeely said that he would, adding that no broker commissions were built into the numbers and that his company did not have any preconceived relationships with any of the vendors. Council Member Scott asked why Entrust was scored low on governmental experience. He also asked for more information on why Humana and Boon Chapman scored higher on governmental experience. Mr. McNeely said he would provide that documentation. Council Member Chesney asked Mr. McNeely for more information on the nature of his company's business relationship with Humana. Mr. McNeely said that they had evaluated Humana as a bidder in an objective RFP process with other public entities in the past. Mr. Chesney also asked why Entrust scored low on experience with public entities. Mr. McNeely said one of the main reasons was that Entrust listed no former clients with greater than 1,226 employees. Council Member Noyola expressed his concern about changing the health insurance plan because the employees seem to be content with the current coverage. He also expressed concern Minutes - Regular Council Meeting May 27, 2003 - Page 10 that Christus Spohn and Humana (would not stay together, forcing some employees to change physicians. Council Member Kellfr asked Mr. McNeely if he was confident that there were no hidden costs or potential for escOlation that had not been discussed. Mr. McNeely replied affirmatively. Mr. Kelly asked ho often Mr. McNeely's firm had recommended Humana to its clients within the last two years. r. Taylor responded that less than 15% of their clients as large as Corpus Christi used Humana. Mayor Neal asked for publ President and Chief Financial Offi an earlier conversation with City today. He asked for more time to Tomas Duran with Duran Insuran• during the presentation, and also as Entrust disagreed with the results . his company's responses to the RF' spoke in support of the professio politicized the process. c comment on item 20. Mr. Anthony Heep, Executive Vice- er with Spohn Health Systems, said that he had understood, in anager Noe, that a recommendation was not going to be made espond, because he had issues with many of the ratings. Mr. Brokerage questioned the accuracy of the numbers provided ed for more time to refute the results. Mr. David Jacobson with the evaluation and said he was not contacted to review any of . Mr. Steve Warner, CEO of the Corpus Christi Medical Center, al consulting process used by staff this year because it de - At this point, Mayor Neal stated that public comment for items not on the agenda was scheduled for 5:30 p.m., and aske I to briefly postpone the public comment on item 20 so that it could take place. Mayor Neal called for petit ons from the audience. Mr. Michael J. Stevens, 7418 Sky King, spoke regarding the proposed ame ment to the sexually oriented business ordinance and a possible conflict of interest concerning C until Member Javier Colmenero. Mr. Juan Vela, owner of Tuxedo's, an adult entertainment club, asked if the Council had received a letter claiming that he intended to sue the city regarding the sexually oriented business ordinance. Mayor Neal replied that he had not received such a letter. * * * * * * * * * * * * * Mayor Neal reopened publip comment on item 20. Mr. Andrew Grove, Director of Sales for Humana in South Texas, pointed cut the benefits that his insurance company could provide to the city. Mr. Rob Hitchcock, President of Humana, spoke in support of the professional consulting process used this year. City Manager Noe said that staff would honor the five-day response period called for in the RFP and provide information as r@quested. He said staff would also provide information on the Council's concern about the relationship between Spohn and Humana. In response to Council Member Chesney's question, he said that the Council would need to make a decision on the health insurance plan by June 10 in order to have open enrollment on a timely basis. Council Member Garrett asked staff ifthey thought that the numbers presented were correct. Cynthia Garcia, Director of Human Resources, and Mike Oarrera, Director of Materials Management, both defended the integrity of the numbers. Mayor Neal made a motion to table a decision on item 20 until June 10, seconded by Council Member Scott. The motion passed unanimously. Minutes - Regular Council Meeting May 27, 2003 - Page 11 20. Mution autlionzn'g tllc d, Up juin lletwel.11 the City ty's s lf-fundl,d 11ca hcaltli s1 rV ic1. uplllclit of a tllrce-ycai contlwi t*O 11 -y lcln.wa 1n, PCS. TABLED UNTIL Mayor Neal opened discus beverage establishment. Mr. Augus introduced James DeBerry, a corpo to Section 4-5(a) of the city code, within the city within 300 feet department had determined that Graham Central Station, was Tess th that the city was using a different m city approved the issuance of a liq for the applicant to request a varian 5(f), GBE was requesting that the C . unci l grant its request for a variance to allow it to proceed with its project. He contended that the p¢oject would be in the best interest of the public and that it would constitute a waste or inefficient us$ of the land if GBE did not develop it. P E 10, 2003 �ncl16 111a1fag 1i1cnt through AOvaue ion on item 21 regarding a variance request for an alcoholic in Rivera, representing Graham Brothers Entertainment (GBE), ate representative for the Graham Brothers. Mr. Rivera referred hich limits the sale and consumption of alcoholic beverages a public school. He said that the Development Services BE's proposed project, an multi -entertainment venue called n 300 feet from King High School. However, Mr. Rivera noted asurement standard now than in years past. Two years ago, the license at the same proposed location. Section 4-5(f) allows e to the regulation. Mr. Rivera said that pursuant to Section 4 - Council Member Garrett a4ked about the hours of operation for the venue. Mr. DeBerry replied that the hours of operation laiould be from 6:00 p.m. to 2:00 a.m., with major traffic occurring between 10:30 p.m. and 11:00 p.m. He asked if they anticipated any friction between the individuals with different tastes in music whiz, would patronize the club. Mr. DeBerry said that in their company's experience, the individuals who patronized their clubs were typically people who enjoyed different types of music and were more tolerant. Council Members Cooper and Noyola spoke in support of the project. City Manager Noe asked if GBE had spoken with the school district or the principal of King High School about their plans. Mr. Rivera said that they had not, but a public notice period would be reggired under TABC requirements. Council Member Colmenego made a motion to adopt the following resolution and Council Member Cooper seconded the motion. Assistant City Secretary Juarez polled the council for their votes, and the resolution passed as follows: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 21. RESOLUTION NO. 025323 Granting a variance, under Section 4-5(0 of the Code of Ordinances, to Graham Brothers Entertainment to operate an on -premises alcoholic beverage establishment located at 4701 South Staples Street. * * * * * * * * * * * * * Mayor Neal deviated from the agenda and referred to Item 23, and a motion was made, seconded and passed to open the pfblic hearing on the following zoning case: 23. Case No. 0403-02, Debbie .Glass: A change of zoning from a "R -1B" One -family Dwelling Minutes - Regular Council Meeting May 27, 2003 - Page 12 District to a `B-1" Neighborhood Business District on Yarbrough Addition, Lots 8 and 9, located on the west side of Airline Road, approximately 1,000 feet south of Holly Road. No one appeared in opposition to the zoning change. A motion was made, seconded and passed to close the public hearing. s. Juarez polled the Council for their votes, and the following ordinance passed with the follow' g vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, votin: "Aye". ORDINANCE NO. 02532 Amending the Zoning Ordi ance upon application by Debbie Glass by changing the zoning map in reference to Lots 8 .nd 9, Yarbrough Addition, from "R -1B" One -family Dwelling District to "B-1" Neighbor ood Business District; amending the Comprehensive Plan to account for any deviations om the existing Comprehensive Plan. Mayor Neal referred to ite public hearing on the following zo4iing case: 24, and a motion was made, seconded and passed to open the 24. Case No. 0403-04, Shell I Business District to a "I-2" acres out of Lot I, Section 1 feet west of Weber Road. nd Management: A change of zoning from a "B-4" General ight Industrial District on Bohemian Colony Lands, being 1.72 , located south of Saratoga Boulevard and approximately 1,550 No one appeared in opposition to the zoning change. A motion was made, seconded and passed to close the public hearing. its. Juarez polled the Council for their votes, and the following ordinance passed with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". ORDINANCE NO. 025324 Amending the Zoning Ordi4nance upon application by Shell Land Management Company, Inc., by changing the zoning map in reference to Bohemian Colony Lands, being 1.72 acres out of Lot 1, Section 12, (durrently zoned "B-4" General Business District) by granting a Special Permit for a distribution facility, subject to a site plan and five (5) conditions; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. Mayor Neal announced that the Council would take a 30 -minute recess. * * * * * * * * * * * * * The Council retumed from recess. Mayor Neal deviated from the agenda and opened discussion on item 22 regarding the Dr. Hector P. Garcia Park Master Plan. Mr. Dan Whitworth, Director of Park and Recreation, introduced Mr. Jim Carrillo with Halff Associates, the park planning consulting firm selected for this project. Mr. Carrillo described the steps in the master planning process. He noted that the Dr. Hector P. Garcia Park was located between the North Area and the Central Area of the city, as identified by the citywide parks Master Plan. The citywide Minutes - Regular Council Meeting May 27, 2003 - Page 13 Master Plan identified significant dleficiencies in those areas that development of the Dr. Hector P. Garcia Park would address. He re#ninded the Council that a citywide survey determined that the citizens preferred renovating and upgrading existing parks over other options. Mr. Carrillo referred to the saying that the plan called for upg larger, newer parks. Council Mem to be preselected for the Bond 2004 considered. Mr. Whitworth replied additional funding through the CD time to make improvements to moi Park, the city's premier park, was It Garcia Park was lacking the most b Garrett and Council Member Kelly Guth Park. action plan developed from the citywide parks Master Plan, ading the existing large "district" parks before proceeding to ger Kinnison asked why the Dr. Hector P. Garcia Park seemed ver the other district parks, and why more parks were not being that one of the reasons was that the Garcia park was eligible for 3G program. He said that there were insufficient funds at this e district parks. Council Member Scott commented that Cole eking adequate irrigation. Mr. Carrillo agreed, but said that the sic development compared to the other parks. Council Member xpressed their concern about the deteriorating condition of West Mr. Carrillo said that the se and recommendation from the citywide parks master plan was the need to develop additional athle is facilities, including the State School facility. The Garcia Park master plan development would h 1p fulfill this goal. Mr. Carrillo illustrated the estimated costs and proposed phasic Park Master Plan was only a "roads on budget considerations. He rept side of the park at an approximate access road and a north play area central practice fields and drainage Phase 3b would implement south million. Council Member Kinnisw was consistent with the cost for tl affirmatively with the exception of In conclusion, Mr. Carrilli master plan for the Garcia Park to for the initial phase of the park im issue and pursue additional grant f the Council for their votes, and the deteriorating condition of the Garcia Park and provided the tg of the development. He reminded the Council that the Garcia nap" for the future, and was subject to changes over time based rted that the initial phase was to add a playground on the west cost of $200,000 to $250,000. Phase 2 would develop a park t a cost of approximately $2 million. Phase 3a would develop area aesthetic improvements at a cost of $1,500,000. Finally, parking and access area improvements for approximately $1.1 asked if the cost of the improvements for the other larger parks sis park, approximately $4 to 6 million. Mr. Carrillo replied Cole Park, which would cost about $1 million. said that staff was recommending the approval of the overall lay. Future recommendations would be to approve the funding rovements, include major funding for the park in the next bond nds to renovate the park. Assistant City Secretary Juarez polled ollowing motion passed with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 22. MOTION NO. 2003-202 Motion to approve the Hector P. Garcia Park Master Plan. Mayor Neal deviated from he agenda and referred to item 25 regarding a public hearing on the FY 2003-2004 Crime Control and Prevention District Budget. Council Member Garrett made a motion to open the public hearing, seconded by Council Member Chesney. The motion passed unanimously. Commander Bryan Smith highlighted the points of interest in the budget regarding Minutes - Regular Council Meeting May 27, 2003 - Page 14 the pawn shop detail, technical sup ort of the officers, street lighting and the juvenile assessment center. There was no public comme t. A motion was made, seconded and passed to close the public hearing. Mayor Neal opened discussi 2003-2004 Operating Budget. City livable neighborhoods, support for customer service and intergovem issue. Mr. Mark McDaniel, Direct the operating budget. He noted so additional supplemental informati. city's revenues, including property fee adjustments, including changes permits and licensing. He discuss - general fund expenditures were rel. of "drag up" reserve and new prog To summarize, Mr. McDa adjustments and new programs/p movement of expenses to the nevi expenses. He said that the total pri . n on item 26, a special budget presentation on the proposed FY anager Noe said that there were five focus areas in the budget: conomic development, employee teamwork and involvement, ental relations. He described how staff was addressing each r of Management and Budget, provided a general overview of e format changes, including a new "Best Practices" section and n for reference. Mr. McDaniel then provided a status on the axes, sales tax, and franchise fees. He reviewed the revenue and o public safety, municipal court, park and recreation, health and d the status of the city's expenditures. He said that the major ted to salary adjustments, benefit adjustments, the continuation ams/program enhancements. iel cited the following additions to the general fund: salary ogram enhancements. He listed the following reductions: development fund and direct charge of formerly reimbursed posed decrease in the general fund would be $1,184,647. In the utility system fund, r. McDaniel discussed expenditures for salaries and wages, specifically for the implementation of the compensation and classification plan and skill -based pay. The re-engineering effort was also major expenditure since it was being implemented in all utility operations. Finally, Mr. McDaniel iscussed the status of other funds, including the marina, the golf center, and airport funds. Mayor Neal commented t t a public improvement district may be an option to fund the downtown area improvements. He also commented that it was a tribute to the city and staff that the general fund has increased $500,0 0 over the last three budget years, yet the city still managed to live within its means. Council M ber Scott expressed his concern that although the downtown initiatives program was on the bud et priority list, he has not seen a cohesive plan for development from the Downtown Management istrict and felt that the city should take the lead. City Manager Noe said there was a great deal of tanning currently taking place and a dialogue was needed with all interested parties. Council Me ber Scott spoke in support of the skate park, saying it was good to see the partnerships taking place In response to Council Member Scott, City Manager Noe said that staff was considering modular units in Flour Bluff and Hilltop. Mr. Scott asked staff to speak with the City of Portland about theit experience with their skate park. Mr. Scott asked if there would be enough volume to justify an environmental court. Mr. Noe said that it worked in other places. Mr. Scott asked when the 4A board was expected to provide a program for affordable housing. City Manager Noe replied that the board should complete their study before the Council adopts the budget. Finally, Mr. Scott complimented staff for the success of the e-govemment program. Council Member Garrett asked for a status report on the Semtech site at the airport. City Manager Noe said that staff was negotiating with Semtech to determine how much they would compensate the city. Council Member Kelly asked when the environmental court would be Minutes - Regular Council Meeting May 27, 2003 - Page 15 implemented. City Manager Noe sad that the court could be implemented within 30-60 days of the new fiscal year. Mr. Kelly asked wlhen the Council would receive a status report on the Landry's project. Mr. Noe said that the Coun it should receive a report by the end of June. Council Member Kelly asked staff to revisit the Ave ue of Americas project on Agnes and Laredo Streets to try to reinvigorate the neighborhoods in that area. He also asked for information on propane -driven mosquito machines. Finally, he as ed for an update on the sexually oriented business ordinance negotiations. City Manager Noe s• id he would schedule an update in an executive session if the council wished. Mr. Kelly asked f r an interim report by the next Council meeting. Mayor Neal announced the 27. Executive session under Te et al vs. City of Corpus Nueces County, Texas, wit 28. Executive Session under T records protected by Healt discussion and action in op xecutive sessions, which were listed on the agenda as follows: as Government Code Section 551.071, regarding Jon Harwood, hristi, Cause No. 00-4149-G, 319th Judicial District Court, possible discussion and action in open session. as Government Code Section 551.071 regarding disclosure of Insurance Portability and Accountability Act, with possible n session. The Council went into execjutive session. The Council returned from executive session. Mayor Neal called for the City Manager's report. City Manager Noe reported that staff was continuing to advocate for the adoption of SB 315 regarding the expansion of the are covered by Del Mar Junior College District. Apparently, there has been some level of opposition. e asked Assistant City Manager Massey to provide a report on the water main break and the effect on water pressure. Mr. Massey reported that the line was being capped and they were estimating that the system would be up by 9:00 p.m. The water pressure issue would be relatively resolved by mi Inight but staff was still encouraging citizens to conserve water because it would take a few days tp fill the water tanks. Mayor Neal called for Council concerns and reports. Mayor Neal asked staff to respond to the claims by Mr. Michael Stevens regarding the sexually oriented business ordinance by the June 10 meeting. Council Member Colrjrenero asked staff to provide additional information to residents near the new post office and housing authority projects. Mr. Colmenero announced the town hall meeting at 6:00 p.m. in Lindale Stinior Center next Monday. He said that he had received staff's response regarding Brentwood. Finally, Mr. Colmenero said that the Kennedy Foundation was willing to work with the city to remove junk cars. Council Member Noyola reported on a proposed meeting with neighbors in the West Oso area for clarification on an upcomitjg zoning case for two proposed affordable apartments. He asked staff to attend. He also asked staff to speak to a constituent about problems with the holiday schedule for trash pick-up. Minutes - Regular Council Meeting May 27, 2003 - Page 16 Council Member Scott note that the God's Gym program had received national recognition from the Weed and Seed Program. He spoke in support of the Velocity Games, but asked that the residents in the area be included in any future discussions for a transportation plan for this event. Mr. Scott asked that staff encour ge dialogue about including the realignment of the Shoreline Boulevard in Bond 2004. City Ma ager Noe said this was a major decision and it would require a process to be in place to allow for p oper debate and consideration before a decision is made, if the Council would like to pursue it. Council Member Garrett ked Assistant City Manager Massey if he had addressed a problem in Lindale Senior Center r garding their parking lot. Mr. Massey said that he had reported the problem to Mr. Whitworth in th Park and Recreation department, and that the Street Department had been notified. There being no further bus'ness to come before the Council, Mayor Neal adjourned the Council meeting at 8:40 p.mon y 27, 2003.