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.