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HomeMy WebLinkAboutMinutes City Council - 06/10/2003I HEREBY CERTIFY that he foregoing is a true and correct copy of the minutes of the Regular Meeting of the Corpus Chr'sti City Council of June 10, 2003, which were approved by the City Council on June 17, 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 June 10, 2003 - 2:15 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 * Arrived at 2:20 p.m. Mayor Neal called the m invocation was delivered by Mayo led by Council Member Henry Ga necessary quorum of the Council meeting. Mayor Neal called for a 2003 and the regular Council meeti the minutes as presented. Mayor Neal referred to Ite Co .us Christi Downtown Mana Bill Durrill (appointed) City Staff: City Manager George K. Noe Acting City Attorney R. Jay Reining City Secretary Armando Chapa Recording Secretary Rebecca Huerta eting to order in the Council Chambers of City Hall. The Neal and the Pledge of Allegiance to the United States flag was ett. City Secretary Chapa called the roll and verified that the and the required charter officers were present to conduct the proval of the minutes of the joint Council meeting of May 27, g of May 27, 2003. A motion was made and passed to approve 2 and the following board appointments were made: ment District Ethics Commission Harold Fredrickson (reappointed) Charles Irwin (appointed) Food Service Advisory Committeq Bob Ard (reappointed) D.W. Haven (appointed) James Robbins (appointed) (NOTE: Ms. Cooper arrived at 2:, O p.m.) Sister City Committee Kent Byus (appointed) Water Shore Advisory Committee Roy Pell (reappointed) Terri Nicolau (reappointed) Dr. Oscar Garcia (reappointed) Dan Leyendecker (reappointed) MechanicaUPlumbing Advisory Board Kevin A. Kemp (appointed) * * * * * * * * * * * * * Mayor Neal deviated from tlhe agenda and referred to item 14, a preview presentation for the Minutes - Regular Council Meeting June 10, 2003 - Page 2 All America Cities Award, which ,(vas performed. Mayor Neal called for con Chapa announced that Item 3, rega to be amended to reflect a than Kinnison made a motion to amend i passed unanimously . He also an discussion and vote on Item 13. C no comments from the audience. constituting the consent agenda, e City Secretary Chapa polled the following vote: Neal, Chesney, C voting "Aye". (NOTE: An emer Noyola abstained on item 13). 3. MOTION NO.2003-203 Motion authorizing the Cit Sechrist - Hall Company Station No. 2 Re -Roof Pro * * * * * * * * * * * * ideration of the consent agenda (Items 3-13). City Secretary ding the Sechrist - Hall Company construction contract, needed in amount from $39,690.80 to $39,690. Council Member em 3, seconded by Council Member Colmenero, and the motion ounced that Council Member Noyola was abstaining from the until members requested that Item 5 be discussed. There were motion was made and passed to approve Items 3 through 13, cept for Item 5, which was pulled for individual consideration. ouncil for their votes and the following items passed by the lmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, ncy was declared on items 4a, 8, 9b, 10b, 11b, 12b and 13a; • Manager or his designee to execute a construction contract with f Corpus Christi, Texas in the amount of $39,690 for the Fire ect. (As amended) 4.a. ORDINANCE NO. 02532 Ordinance appropriating $521,165 in Unappropriated Interest from Water Capital Improvement Program Fun No. 4081(1994 Revenue Bond); for Wesley Seale Dam damage repairs; amending the FY2 02 - 2003 Capital Budget adopted by Ordinance No. 025144 to increase appropriations by 521,165. 4.b. MOTION NO. 2003-204 Motion authorizing the City Manager or his designee to execute a construction contract with Lowman Services, Inc. of Robstown, Texas, in the amount of $521,164.80 for Wesley Seale Dam Damage Repairs. 6. MOTION NO. 2003-206 Motion authorizing the Cit) Manager or his designee to execute a construction contract with R.S. Parker Construction of Portland, Texas in the amount of $104,550 for the Kinney Street Bridge Repairs. 7. MOTION NO. 2003-207 Motion authorizing the City Manager or his designee to execute a Real Estate Sales Contract with Thomas W. Stewart aid Nina Kathleen Russo, Independent Executrix of the Estate of Minutes - Regular Council Meeting June 10, 2003 - Page 3 John B. Russo, in the amou t of $37,000 plus $1,500 in closing costs for the purchase of fee simple property rights for .:82 acres out of Block 53, Beach Addition, necessary for the Broadway Wastewater Trea ment Plant Lift Station & Diversion to Greenwood Wastewater Treatment Plant/Nueces Ri er Delta, Project #7110. 8. ORDINANCE NO. 02532 Ordinance appropriating 2,339 in unappropriated interest from Fire Station Capital Improvement Fund No. 3191 for the Mustang Island Fire Sub -Station project; Closing Fund No. 3190; amending Cap tal Budget adopted by Ordinance No. 025144 to increase appropriations by $2,339. 9.a. RESOLUTION NO. 02532 Resolution authorizing the ity Manager or his designee to accept a reimbursement grant from the Texas Commissisn for Environmental Quality in the amount of $19,003 for mitigation measures at Fire Station No. 10. 9.b. ORDINANCE NO. 02532 Ordinance appropriating $ 9,003 reimbursement grant from the Texas Commission for Environmental Quality in the No. 1050 Federal/State Grants Fund for the mitigation measures at Fire Station N . 10. 10.a. MOTION NO. 2003-208 Motion authorizing the Ci Manager or his designee to accept a renewal grant in the amount of $271,525 and execute . contract with the Corporation for National and Community Service for the continuatio of the Senior Companion Program. 10.b. ORDINANCE NO. 02533 Ordinance appropriating a rant in the amount of $271,525 awarded by the Corporation for National and Community S rvice in the No. 1050 Federal/State Grants Fund for the Senior Companion Program. 11.a. MOTION NO. 2003-209 Motion authorizing the City Manager or his designee to execute Attachment No. 06A to Contract No. 7460005741-2003 with the Texas Department of Health increasing the administrative funds at the rate of $9.95, which replaces the previous $9.45, for each participant served to prov de for funding of group nutrition education, and individual counseling. The program shall also distribute food vouchers during the period of October 1, 2002 through Septembef 30, 2003 as part of the Women, Infants and Children (WIC) Federal Program. Minutes - Regular Council Meeting June 10, 2003 - Page 4 11.b. ORDINANCE NO. 025331 Ordinance appropriating an increase in the Texas Department of Health Grant for Women, Infants, and Children (WICI Program from $9.45 to $9.95 per participant served, for total estimated grant increase of 1.31,000, in the No. 1050 Federal/State Grants Fund. 12.a. RESOLUTION NO. 02533 Resolution authorizing the Department of Public Safet for television public servic 12.b. ORDINANCE NO. 025333 ity Manager or his designee to accept a grant from the Texas Division on Emergency Management in the amount of $1,000 announcements during the 2003 Hurricane Season. Ordinance appropriating $ ,000 from the Texas Department of Public Safety Division on Emergency Management, i the No. 1050 Federal/State Grants Fund for television public service announcements dur ng the 2003 Hurricane Season. 13.a. ORDINANCE NO. 02533 Ordinance authorizing the City Manager or his designee to execute an agreement with Aeronautical Radio, Inc. to lease space containing approximately 56 square -feet located in the lower level of the t: inal for the maintenance and operation of aeronautical communication equipment providing air/ground data communications to aircraft on the ground and en route within 200 nautical miles from Corpus Christi, subject to compliance with all applicable federal, tate, and local laws and regulations in consideration of payment of $39.85 per square foot o a monthly basis for a term of up to twelve months. 13.b. FIRST READING ORDIN NCE Authorizing the City Mana Radio, Inc. to lease space c of the terminal for the maint providing air/ground data c nautical miles from Corpus and local laws and regulati monthly basis for a term o er or his designee to execute an agreement with Aeronautical ntaining approximately 56 square feet located in the lower level nance and operation of aeronautical communication equipment mmunications to aircraft on the ground and en route within 200 Christi, subject to compliance with all applicable federal, state ns in consideration of payment of $39.85 per square foot on a up to five years. Mayor Neal opened the discussion on item 5 regarding a construction contract for the Kostoryz Lift Station. Council Merjiber Scott asked what impact, if any, this transaction would have on development opportunities in this area. Mr. Angel Escobar, City Engineer, replied that the transaction would improve develo ment opportunities because it would eliminate four lift stations to build one large lift station. Assstant City Manager Ron Massey added that the new lift station will divert some of the flow going to the Oso Plant into the Greenwood Plant. City Secretary Chapa polled the Council for their votes land the following motion passed by the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". Minutes - Regular Council Meeting June 10, 2003 - Page 5 5. MOTION NO. 2003-205 Motion authorizing the Cit Holloman Corporation ofC Lift Station and Force Mai Mayor Neal referred to the the Corpus Christi Economic Dev called the New Markets Tax Cre Council that the new program was federal tax credits to a designated program, Mr. Kitchens stated that t program is to provide incentives f census tract, as low to moderate in city limits, much of the area servi counties, and the industrial district taking place every September. application to form an organizatio amount of tax credits would be in was that the New Markets Tax Cr credits, making it possible for new Manager or his designee to execute a construction contract with nverse, Texas in the amount of $1,841,249.88 for the Kostoryz s. resentations on the day's agenda. The first presentation was by lopment Corporation (EDC) regarding a new federal program its. Mr. Ron Kitchens, President of the EDC, informed the milar to the Renewal Community program in that it grants 39% area within the community. Unlike the Renewal Community e New Markets program much simpler to use. The goal of the investment in areas designated by the federal government, by ome. He said that this area would include the majority of the ed by the Port of Corpus Christi in Nueces and San Patricio . He said that the tax credits are awarded in annual competition r. Kitchens stated that the EDC was proposing to submit an eligible to receive the tax credits. He said that the requested he range of $80 million. He commented that an added benefit dits could be used in addition to the Renewal Community tax development to receive nearly 80% in tax credits if successful. Mr. Kitchens stated that the Port of Corpus Christi had already endorsed the program, and that the EDC was now seeking the Council's endorsement. City Manager Noe added that there was a cost associated with the progra11, and that Mr. Kitchens had been very assertive about raising private sector dollars in excess of $ 50,000 to pay for the legal and planning costs involved. He said that the city and the Port of Corpu Christi were being asked to jointly contribute $75,000, so the city's share would total approxim ely $37,500. Mr. Noe said that there were monies set aside in the CDBG administrative budget r this project, and a future council action would be scheduled authorizing an agreement with the EDC to participate in this project. The total estimated cost of the project was $200,000. Council Member Noyola asked Mr. Kitchens to meet with him to discuss the program in more detail. Counc 1 Member Scott offered Mr. Kitchens the assistance of the city's Washington D.C. lobbyist to further their cause. The last presentation item vias a quarterly update on Solid Waste Services. Mr. Jeff Kaplan, Director of Solid Waste, discussed on the distribution plans for the second phase of the automated garbage service program, to begin in September 2003. He said that 21,000 households would be added to the automated routes in Piase II, for a total of 54,000 households. Additionally, he said that 18 more positions had been eliminated through attrition, for a total automation savings of 54 FTEs. In accordance with the repommendations made by Gershman, Brickner & Bratton Inc. (GBB), the city's solid waste consuptant, Mr. Kaplan stated that all routes will be placed on a six-day schedule (M—Th, T -F, W -S). He al$o said that yard waste will be co -mingled with residential waste, per GBB's recommendation. Mr. Kaplan reviewed the aspects of the community campaign that the Solid Waste department would be employing to inform the citizens about the changes. Mr. Kaplan discussed the plans for Phase III of the automated garbage service program, to Minutes - Regular Council Meeting June 10, 2003 - Page 6 be implemented in FY 04-05. In Ph se III, the 21,000 remaining customers would receive carts and the routes would continue to be se iced by semi -automated equipment, in accordance with GBB's recommendations. Mayor Neal asked Mr. Kap affect the implementation of auto service" routes have been establ individuals. Council Member Garr employers. Mr. Kaplan replied t� through attrition. Assistant City M to keep these positions filled beca employees. Mr. Garrett asked how next to their cart. Mr. Massey rep their trash in the cart or request an a to use the cart. Finally, Council M garbage service was implemente. automated service? Mr. Kaplan re the households would receive auto semi -automated service. Council Member Colmen� automation. Mr. Kaplan replied tl situations that impede the ability of service, amounting to approximate) had realized a reduction in work -r affirmatively, but said that worker an how those customers requesting "back door service" would ated garbage service. Mr. Kaplan replied that "back door shed using semi -automated service to accommodate those tt asked if the 18 eliminated positions were primarily temporary at these were permanent positions that had been eliminated nager Massey added that the department had found it difficult se they were low-paying, thus requiring the use of temporary he department handles those customers who lay additional trash 'ed that they are issued a notice to remind them to either place ditional cart. He said that the goal was to encourage customers mber Garrett asked that when the final phase of the automated , would there be any areas in the city that would not have Tied that every household would receive a cart, and that 80% of ated service. The remainder of the households would receive ro asked if the city had encountered any problems with at areas intensely packed with parking, cul-de-sacs and other the trucks to reach the driveways would receive semi -automated y 20% of households. Council Member Cooper asked if the city dated injuries because of the automation. Mr. Kaplan replied safety and training was still a focus. Mr. Kaplan reviewed the reycling operation, providing four options the city could consider to rejuvenate the program. The first option was to continue the existing recycling program, consisting of a pick-up frequency f every two weeks with separate recycling collection, budgeted for FY 03-04 at $982,000. Mr. aplan stated that there are approximately 17,000 customers participating in the program, or 3%. The state's suggested goal was 40%, but this was not mandated. Council Member Kinni on asked about including commercial recycling in the program. Mr. Kaplan replied that commercia recycling was possible, but would require an citywide ordinance requiring that the material be sepatated and collected separately. He also said that the city would need to partner with the private sec�or to be successful. Mr. Massey added that outside haulers like BFI provided service to commerci 1 accounts primarily for recycling cardboard. Council Member Scott asked if a program would be implemented to encourage recycling. Mr. Kaplan replied that staff was encouraging citizens to recycle in one way by stressing that the benefits of recycling over purchasing an additional cart. Mr. Kaplan also said that the 40% goal set by the state was based on landfill diversion, not participation rates. Other states with successful programs, like California, have more commercial participation with state -mandated goals and more federal incentives. The reduced service level program (Option 1) would still provide curbside service with a reduced frequency of once a month. Mr. Kaplan reported that the projected annual cost of this program would be $694,273, 55% Of the current cost. The enhanced service level program (Option 2) would move to once a week recycling and garbage pick-up, beginning with a pilot program. He Minutes - Regular Council Meeting June 10, 2003 - Page 7 said that each household would re colored top. He added that the recy the customer. In response to Mr. K tremendous strides in recycling, t federal assistance. Finally, the last option he p from curbside to drop off center. T year period. Council Member Sc participation rates. Mr. Kaplan res options. He said a benefit to this p be open seven days a week, ten ho material for a period of time and the and hazardous household waste). Mr. Kaplan briefly review included a six-day work week a modifications to the Cash for Tras he provided a status on the Househ the Litter Critter Program. eive two carts but the recycling cart would have a different ling would be separated at an enhanced sorting facility, not by lly's question, Mr. Kaplan said that although the city has made e success of the program would benefit from more state and esented was a new program (Option 3) which would transition e program would require that five centers be built over a five - asked if the new program would further decrease recycling onded that this option could be used in combination with other . gram would be location and availability. The facilities would rs a day. In addition, the resident would not have to store the sites would accept more materials besides recycling (e.g. brush d the re-engineering of the brush collection program, which d a five-week cycle throughout the city. He highlighted program, primarily by eliminating carpet collection. Finally, Id Hazardous Waste events, curbside bulky item collection and * * * * * * * * * * * * * Mayor Neal referred to Ite 17, and a motion was made, seconded and passed to open the public hearing on the following zo ing case: Case No. 0503-02 Robert Rural District to a "RE" Re deeded to Richard Hesse, Lots 15 and 16, Section 25 of Airline Road and appro City Secretary Chapa said of the "RE" District. No one app seconded and passed to close the p to avoid the "panhandled" lot that this specific instance, this type of panhandled lots were not ideal an & Earlene B. Jones: A change of zoning from a "FR" Farm- idential Estate District on 2.00 acres out of a 28.9767 acre tract ocument #2002036700, Nueces County, Texas and also out of n Flour Bluff and Encinal Farm and Garden Tracts, located east imately 650 feet north of Yorktown Boulevard. he Planning Commission and staff recommended the approval ared in opposition to the zoning change. A motion was made, blic hearing. Council Member Kelly asked if there was any way ould be created by this development. Mr. Gunning said that in of would not be problematic. However, he acknowledged that should be restricted more by the city's codes. Mr. Chapa declared an emOrgency and polled the Council for their votes. The following ordinance was passed by the folloyving vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 17. ORDINANCE NO. 025335 Amending the Zoning Ordinance upon application by Robert I & Earlene B. Jones by changing the zoning map in reference to 2.00 acres recorded in Document No. 2002036700 Minutes - Regular Council Meeting June 10, 2003 - Page 8 Nueces County, Texas and Section 25, from "F -R" Fa the Comprehensive Plan to Plan. lour Bluff and Encinal Farm and Garden Tracts, Lots 15 and 16, -Rural District to "R -E" Residential Estate District; amending account for any deviations from the existing Comprehensive Mayor Neal referred to Ite 18, and a motion was made, seconded and passed to open the public hearing on the following zo ing case: Case No. 0403-05 B&EC • artnershi. Ltd.: A change of zoning from a "F -R" Farm -Rural District to a "R -1B" One- amity Dwelling District on Tract 1 and "R -1C" One -family Dwelling District on Tract on Flour Bluff and Encinal Farm and Garden Tracts, being 36.631 acres out of Lots 21 • nd 22, Section 19, located south of Wooldridge Road and Wind Hollow Drive Intersection. City Secretary Chapa said of the "R -1B" District on Tract 1 a to the zoning change. Council Me by Council Member Cooper. Th questions regarding this case: I) w would Wooldridge Road support capacity for this new development. lists for replacement, either by the term project. He replied that the development. Finally, Mr. Masse e Planning Commission and staff recommended the approval d "R -1C" District on Tract 2. No one appeared in opposition ber Scott made a motion to close the public hearing, seconded motion passed. Council Member Scott asked the following uld the wooden bridge over the drainage ditch be replaced; 2) e additional traffic; and 3) does the drainage ditch have the Assistant City Manager Massey said that the bridge was on two torm water improvement budget or by TxDot, and was a long - drainage ditch does have the capacity to work with this new said that Wooldridge Road can support the additional traffic. Mr. Chapa polled the Coun . it for their votes, and the following ordinance was passed by the following vote: Neal, Chesney, C ilmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 18. ORDINANCE NO. 02533 Amending the Zoning Ordi the zoning map in referen 36.631 acres out of Lots 21 One -family Dwelling Dist 2; amending the Compre Comprehensive Plan. ance upon application by B & EC Partnership, Ltd., by changing e to Flour Bluff and Encinal Farm and Garden Tracts, being and 22, Section 19, from "F -R" Farm -Rural District to "R -1B" ct on Tract 1 and "R -1C" One -family Dwelling District on Tract nsive Plan to account for any deviations from the existing Mayor Neal referred to Item 19, and a motion was made, seconded and passed to open the public hearing on the following zoning case: Case No. 0503-01, J. Patri0k Moran, MD: A change of zoning from a "R -IB" One -family Dwelling District and "A-2' Apartment House District to a "B-4" General Business District on Flour Bluff and Encinal parm and Garden Tracts, being 32.521 acres out of Lots 1, 2, and 3, Section 11, located south of Saratoga Boulevard, approximately 800 feet east of South Staples Street. Minutes - Regular Council Meeting June 10, 2003 - Page 9 City Secretary Chapa said t approval of the "B-4" District. No made, seconded and passed to clos knew what type of development wa it would be some type of retail deve type of signage used. Mr. Gunnin regarding "B-4" signage at the end of the month. at the Planning Commission and staff were recommending the one spoke in opposition to the zoning change. A motion was the public hearing. Council Member Kinnison asked if staff planned. Mr. Gunning replied that he did not know but thought opment. Mr. Kinnison asked what could be done to restrict the answered that staff was working on set of recommendations City Secretary Chapa decla following ordinance passed with t Kelly, Kinnison, Noyola and Scott 19. ORDINANCE NO. 02533 Amending the Zoning Ordi the zoning map in reference Tracts, Lots I, 2 and 3, Se Apartment House Districtt Plan to account for any dev Mayor Neal deviated from seconded and passed to open the p Case No. 0403-06 F & S F District to a `B-1" Neighbo and 15, located south of C City Secretary Chapa said t application. However, staff was re approval of a special permit for a p when the case came before the Plan representative, Mr. Clark Flato, di Planning Commission denied his r spoken with the owner, who was a passed to close the public hearing. ed an emergency and polled the Council for their votes. The following vote: Neal, Chesney, Colmenero, Cooper, Garrett, voting "Aye". ance upon application by J. Patrick Moran, M.D. by changing o 32.521 acres out of Flour Bluff and Encinal Farm and Garden ion 11 from "R -1B" One -family Dwelling District and "A-2" "B-4" General Business District; amending the Comprehensive ations from the existing Comprehensive Plan. the agenda and referred to Item 21, and a motion was made, blic hearing on the following zoning case: d Inc.: A change of zoning from a "R -B" One -family Dwelling hood Business District on Gardendale Unit 2, Block 5, Lots 14 is Clark Drive and 220 feet west of South Staples Street. at the Planning Commission was recommending a denial of the ommending the denial of the "B-1" District, and in lieu thereof, rking lot subject to six conditions. Mr. Gunning explained that ing Commission, the applicant was out -of -the -country, and his not have the authority to accept the compromise. Thus, the quest. However, Mr. Flato, 4321 Floyd, said that he had since enable to the special permit. A motion was made, seconded and City Secretary Chapa decl red an emergency, and polled the Council for their votes. The following ordinance passed with e following vote: Neal, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, votin "Aye"; Chesney was absent. 21. ORDINANCE NO. 025339 Amending the Zoning Ord nance upon application by F & S Food, Inc., by changing the zoning map in reference to Gardendale Unit 2, Block 5, Lots 14 and 15, (currently zoned "R - 1B" One -family Dwelling Ipistrict) by granting a Special Permit for a parking lot subject to six (6) conditions; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plin. Minutes - Regular Council Meeting June 10, 2003 - Page 10 Mayor Neal deviated from the agenda and referred to Item 22, and a motion was made, seconded and passed to open the public hearing on the following zoning case: Case No. 0403-03, Las Vi las De Corte Real: A change of zoning from a "I-2" Light Industrial District to a "R-2" Multiple Dwelling District on Mid -Town Industrial District, Block 1, Lots 62, 63 and 64, located south of Bear Lane between Cliff Maus Drive and South Navigation Boulevard. City Secretary Chapa noted that the applicant was requesting to postpone this item until October 14, 2003. Council Membe- Noyola made a motion to table the item, seconded by Council Member Colmenero. The motion passed unanimously. 22. the zo,,,ng )nap in refcrulce to Mid-ToJ6u ludustlial llistl,et, Uluek 1, Lot, 62, bS a11d 64, firm "I-2" Dist Ligllt Iudu�lua Distuct lu R-2 Multiple DJOcllnlg uct, ulncudwg t11c Colup1e11t11aive Plau to ac.Auld fur a11y deviations fLo111 t IC CAlstiltg Can1p1e11e11sive P1a11. TABLED UNTIL 10/14/03 Mayor Neal deviated from the agenda and referred to item 20, and a motion was made, seconded and passed to open the public hearing on the following zoning case: Case No. 0403-01, Albert R Villarreal: A change of zoning from a "AB" Professional Office District to a "B- I " Neighborhood Business District on Southwood Subdivision, Block 1, Lot 7, located on the south sidg of Gollihar Road, approximately 280 feet west of Kostoryz Road. City Secretary Chapa said 1 the "B-1" District, and in lieu ther sales business and enclosed storagt recommending a denial. at the Planning Commission was recommending the denial of of, approval of a special permit for a mattress retail/clearance of mattresses subject to nine conditions. He said that staff was Mr. Gunning said that staff was against the change in zoning because it would extend a commercial use into the existing neighborhood and because heavy trucks would be delivering mattresses, damaging the frontagel road. He said that the applicant was in agreement with the Planning Commission's recommendation for a special permit. Mayor Neal asked for pu lic comment. Mr. Albert Villarreal, the owner of Mattress Clearinghouse at 3129 Gollihar, sad that the site had historically been used for retail purposes and he did not know that he did not h ve the proper zoning. He said that he has the neighborhood's support to remain in business on this site. Mr. Villarreal added that he maintains his property well and overall was a good neighbor. He said that he was in agreement with the conditions of the special permit except for condition 8, which would limit the size of delivery trucks to one ton, and asked it would be possible to amend this requirement. Mr. Charles Nichols, 1547 League Lane, spoke in support of the applicant. A motion was made, seconded and passed to close the public hearing. Council Member Colmenero spoke in support of the applicant's request. Council Member Noyola spoke in support Minutes - Regular Council Meeting June 10, 2003 - Page 11 of the Planning Commission's reco the Planning Commission's recom Condition 8 regarding the one -ton made deliveries to his business, but commented that the road was not asked how long the truck had been had been taking place for 18 month mendation. Council Member Cooper also spoke in support of endation, but asked Mr. Villarreal if he was willing to accept rucks. Mr. Villarreal explained that a four -ton delivery truck e would be willing to work around this if needed. Mr. Gunning esigned to sustain that much weight. Council Member Kelly elivering to the business. Mr. Villarreal said that the deliveries . In response to Mr. Kelly's question, Mr. Gunning replied that there had been no complaints made to him about the truck nor was there any visible damage to the street. Council Member Kelly askes if Mr. Villarreal had the authority to request this change since he was leasing the property fro Albert Huerta. Mr. Gunning replied that Mr. Huerta had authorized Mr. Villarreal to spea on this matter. Council Member Noyola asked about the frequency of the deliveries. Council Member Cooper m • e a motion to amend Condition 8 of the Planning Commission's recommendation for a special pe it to allow for a four -ton vehicle and it was seconded. The motion passed unanimously. City ecretary Chapa declared an emergency and polled the Council for their votes. The following o • finance passed as amended with the following vote: Neal, Chesney, Colmenero, Cooper, Ga ett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 20. ORDINANCE NO. 02533 Amending the Zoning Ordi zoning map in reference to Professional Office District store subject to nine (9) co deviations from the existin ance upon application by Albert R. Villarreal by changing the outhwood Subdivision, Block 1, Lot 7, (currently zoned "AB" by granting a Special Permit for mattress retail/clearance sales ditions; amending the Comprehensive Plan to account for any Comprehensive Plan. Mayor Neal called for a fi een-minute recess. The Council returned from recess, and Mayor Neal deviated from the agenda and opened discussion on Item 24 regarding th city's health insurance program. The Council had a number of concerns, including the following: ost for stop loss insurance for each proposal; differences in the plan years shown; and an explant on of the term "nonaggregated claims expense" in the Entrust proposal. A discussion and detail analysis ensued. Council Member Chesney commented that the Council had been told that they did not receive good numbers for the Ent-ust proposal. He asked Mr. David Jacobson with Entrust to indicate which specific costs he dis4greed with in the committee's evaluation. Mr. Jacobson replied that there were two specific costs tl}at he felt should not have been included in the report. First, the inclusion of an $8.57 per month npnaggregated claims expense, totaling $335,567, was counted twice, resulting in a higher bottom line number. Mr. Keith McNeely with McGriff, Siebels and Williams, Inc., the city's health insprance consultant asked Mr. Jacobson what made up the $8.57. Mr. Jacobson responded that the $$.57 was comprised of the $3.25 per claims transaction fee plus the $1.92 network provider cost plus the $3.50 dental admininstration cost. Mr. McNeely responded that if that were the case, then the $$.57 was included twice in the report. By including this amount Minutes - Regular Council Meeting June 10, 2003 - Page 12 only once, the total fixed costs for E trust would be decreased by approximately $333,000. Ms. Lee Ann Dumbauld, Director of F'inanc al Services, pointed out that the third column from the right on the report the Council had just been provided reflected total fixed costs without the non -aggregated claims expense, or $941,848. The second cost which Mr. per claim. Mr. McNeely replied t from its administrative costs. The n claims (at $3.25 per claim), which Jacobson did not feel that this cost as a claims expense. Mr. McNeely of where it was included. This co fixed cost or claims cost. Mr. Jacobson also stated th month per transaction, whereas the Entrust's total (excluding non-aggr Mr. Jacobson then dispute claims per year. He felt the numbe claims per year. Ms. Dumbauld cl. per year, which would equal $23 approximately $991,000 ($938,48 Mr. Jacobson also took issu listed under PBM (Prescription Bec administration of health benefits. not included in the PBM fees. Rat a per script basis through Walgreei acobson disagreed with was a claims transaction fee of $3.25 at no other company, in his experience, separated this amount mber of claims Mr. McNeely estimated for the year was 56,000 quated to $182,000 of costs added to the Entrust proposal. Mr. hould be included as a fixed cost, but rather should be included ommented that ultimately, this expense must be paid, regardless t, however, was not included in Entrust's proposal as either a t Entrust used a monthly fee for pre -certification of $1.15 per ity showed $1.23 per month per transaction. This would lower gating claims expense) by approximately $3,000, or $938,484. the number of claims used to derive the $182,000 or 56,000 of claims averaged 4,000 per month, which equates to 48,000 rified that actual transactions were now running 72,000 claims ,000. This $52,000 would increase Entrust's fixed costs to plus $52,000). with the inclusion ofa prescription drug administration expense efit Management) fees, saying that this cost was included in the ✓Ir. McNeely replied that prescription drug administration was ger, this category included an administrative charge applied on 's of 40 cents, which Entrust listed in their proposal. The Council discussed the gross physicians claims amount that was shown for Christus Spohn. Mayor Neal asked for clar fication of the discount percentage for physicians that Humana was offering. Mr. McNeely answe ed that Humana was offering a 45% average bill discount while Spohn was offering a 35% discount Council Member Chesney referred to an Entrust report that had been circulating which showed th Spohn was in fact offering a 43.96% physician discount rate. Mr. McNeely replied that the repo was using paid claims and not gross claims as the base number to obtain the 43.96%. He stated th t it did not include the amounts that the employees had already paid, so it was not a true represe ation of the discount. Mr. McNeely concluded that Humana offered approximately $800,000 n savings over Entrust (using the Spohn network), primarily based on the savings differential on the physician side of the network. Mayor Neal observed that it was now time for public comment for items not on the agenda. He asked to postpone the discussion on item 24 so that it could take place. * * * * * * * * * * * * * Mayor Neal called for petitions from the audience. Mr. John Torrey, 7253 Yaupon Drive, Minutes - Regular Council Meeting June 10, 2003 - Page 13 spoke regarding a letter he had sen waste haulers' permit and alleged 728 Sea Breeze, Mr. Luciano Oli Gregory, TX, and Ms. Phyllis Hat permit. Assistant City Manager R enforce the requirement for a pe attempting to educate the haulers o Waste was now ready to increase th to Mr. Torrey's letter in writing. Mr. Jerry Garcia, 1901 Lori enforcement of the by-laws of the Council Member Noyola asked tha Mr. Danny Noyola, 4410 A moving to a citywide focus, changi this difference. He thanked staff for Mayor Neal re -opened the program. Council Member Kinnis the numbers were irrelevant in ma cited in their original proposal. C questions: 1) what would be the e for prescriptions and office visits; contract between Spohn and Hu Dumbauld replied that the out -o employee only coverage and from Schrieber-Garza, Senior Analyst prescriptions would increase by $5 across the board: from $15 to $20 for an office visit, from $5 to $10 for generic drugs, from $30 to 35 or 30%, whichever was higher, for name -brand drugs. She said that health insurance costs wo Id increase by 20% for civilian employees and 23% for Police and Fire in FY 04. In regard to the c ntract between Spohn and Humana, Ms. Dumbauld replied that Humana has agreed that if the num.er of hospitals and physicians does not remain consistent with their proposal, the city would rese e the right to do another RFP. the Council about problems with the enforcement of the solid emptions on insurance for some haulers. Mr. Jim Lotspeich, era, 3519 Olson, Mr. Vance Dawson,416 Highway 181 in her also spoke about problems with the solid waste haulers' n Massey replied that two compliance officers will be hired to it. He said that initially, the Solid Waste department was the requirements before penalizing them. He stated that Solid it enforcement efforts. The Council asked Mr. Noe to respond e, and Mr. Henry Saavedra spoke regarding problems with the Southside Pony League as they applied to disruptive parents. staff meet with them to discuss the matter. shnet, reported that the Moody Neighborhood Association was g their name to the Corpus Christi Barrios Association to reflect heir efforts in furthering neighborhood economic development. discussion on item 24 regarding the city's health insurance commented that today's recalculations and controversies over y respects because what was binding was what the companies uncil Member Garrett asked for information on the following ployees' out-of-pocket maximum; 2) what would the co -pay be ) by what percent would health care increase; and 4) after the ana expired in eighteen months, would Spohn renew. Ms. pocket maximum would double from $1,000 to $2,000 for 3,000 to $6,000 for employee and family coverage. Ms. Adria or Risk Management, said that co -pays for office visits and Council Member Chesney asked Mr. McNeely if the team were to give Entrust every deduction it had asked for, would Humana still offer a better deal financially. Mr. McNeely said that based on the information provide4 in the proposals and the analysis that had been completed, Humana offered the better deal. In response to Mr. Chesney's question, Ms. Dumbauld said that the actuarial report in October 2002, With March 2003 revisions, had projected increases of 14.5% in FY 03 and 16% for FY 04. Howeter, the actual increase as of May 31, 2003, compared to FY 02, was 27.4%. City Manager Noe added that, unfortunately, staff had made optimistic assumptions over the past two years which did not bear out. Council Member Scott asked staff to address a concern that the one major claim this year in the Police Department was the cause of the increases because the city was seeking to recoup its Minutes - Regular Council Meeting June 10, 2003 - Page 14 losses from the rest of the employee been fortunate that there had been o stated that an organization of the ci claims in any given year. She co increase. Council Member Scott ob alone. Mr. Chesney asked if Hum Hitchcock, President of Humana, r in San Antonio and Austin (regiona director who also worked for Chri TPA costs were so much higher th an infrastructure in place which w� good deal. He also cited the costs outside agencies because they are expressed concern that the city wou d be paying for Humana's overhead expenses when they did not directly benefit the city. Mr. Hitch.ock replied that in his view, when the total benefit package was combined, the city was benefitting He added that Humana would not dispute their costs because they were very straightforward. . Ms. Dumbauld replied that for the last two years, the city has ly one very large claim per year. She said that the actuary has y's size and demographics should see three to four very large eluded that this year was more the norm, accounting for the erved that the city was $1,000,000 in the red in the Citicare plan na had a full-time medical director with a local office. Mr. Rob plied that Humana had two full-time medical directors located director for commercial products) and a local part-time medical us Spohn. Mr. Chesney asked Mr. Hitchcock why Humana's the other proposers. Mr. Hitchcock replied that Humana had ked to provide those extra services that made their company a ssociated with the enhanced oversight they experienced from n insurance company, not a TPA. Council Member Chesney Council Member Cooper c mented that she had received many calls from city employees who were concerned about this d ision. She said that she would also be taking the quality of service and consistency into consid ration, not just the cost of service. She asked Mr. McNeely why the city should chose Humana. Mr. McNeely replied that Humana would save the city approximately $5 million over five ears and that employees will be able to use both the Spohn and HCA systems. Council Member Scott com ented that the cost of the program was a primary consideration. If the city were to stay with Entrust, then the city would have to recoup the $1 million shortfall some other way, most likely through the ployees. He felt that asking employees to pay $1,000 over five years would be unacceptable. He s id that it would bother him if the city did not accept the savings that Humana was offering, with the dded benefit that the employees would more than likely be able to keep their current physicians. Council Member Noyola suited that, like Council Member Cooper, he had been contacted by city employees who said they *ere satisfied with Entrust and did not want to change. He said that he had been contacted by emciloyees with CCISD who had Humana insurance and said they were not satisfied. He stated that hq thought the $1 million shortfall was due to a prior mistake made by staff. Council Member Colmenerp asked about out -of -network physicians. Mr. McNeely replied that the employee could contact Hujnana about adding the physician to the network. If the physician does not want to join Humana's network, then Mr. McNeely said that the employee would have to decide whether to receive decreased benefits by continuing to see the physician or to change physicians. Council Member Kinnison commented that the quarterly report showed that the city lost $3 Minutes - Regular Council Meeting June 10, 2003 - Page 15 million over nine months. He ques ioned whether the 20% increase would be enough to cover the shortfall. He concluded that due ti the current financial situation, it would be difficult to remain with the same plan because it was of the lowest cost proposal. He added that in addition to being the low cost plan, the Humana pla offered employees more choice and quality service. He asked Mr. Noe to communicate with the mployees about the upcoming changes in the plans because it would be simple to blame the incr:. ses on the change in insurance provider. Mayor Neal called for publ c comment. Mr. Tony Heep with Christus Spohn said that he thought the evaluation process was awed from the beginning because they did not provide the five- day comment period. He felt that .ome of the evaluation results were unsubstantiated. He took issue with the number of physicianshown in the evaluation matrix, the claims experience shown, and the level of experience worki g with public entities. Mr. Steve Warner, CEO of the Corpus Christi Medical Center, spoke n support of the evaluation process used to make this recommendation. Mr. David Jacobson with E trust provided the Council with a report summarizing his points of contention. He stated that he fel the $1 million in savings from the physicians claims touted in the evaluation results were overinf1 ted because they included duplicate claims, ineligible charges, and non -covered claims. He cont = ded that in reality, the Spohn system was similar in cost to the Humana system, so the differenc= between the two was negligible. A discussion and detailed analysis ensued regarding the repo Council Member Kelly aed Mr. Jacobson that, assuming that his contentions were accurate, why should the Council choose Entrust as the TPA over Boon Chapman, the highest scoring TPA. Mr. Jacobson rept ed that Entrust provided service that appeared to please the employees; performed weekly sit: visits; was the only TPA with a local office; handled claims quickly; and had a local medical d rector, among other reasons. Mayor Neal stated that due o the late hour, he asked to postpone the remaining items on the agenda for a later date, namely the budget presentation, the executive sessions, and the legislative update. Council Member Kinnison uestioned Mr. Jacobson's figures showing that the city would save $12 million with Entrust. Mr Jacobson said he based his figures on the presentation made to the Council on May 27, 2003, usin his actual figures. Mayor Neal asked Mr. Jacobson to explain why he thought $6 million in cha ges were due to duplicate billing and ineligible charges. Mr. Jacobson said that it was the best e planation, but could be subject to other variables. He also said that he did not know why the ci was using gross physician amounts instead of paid claims amounts, which were normally us d. However, Mr. Tony Heep with Christus Spohn said that he wanted to dispel the notion that th$re was a significant amount of charges due to duplicate bills. Upon further discussion, Mayor Neal noted that the Entrust report which Mr. Jacobson had just distributed to the Council had physician costs classified as hospital costs, and that appeared to be the reason why the physician costs were lower. The total of the two costs, however, was very close to the numbers reflected on Christus Spohn's report. Mr. McNeely pointed out that physician discounts and hospital discounts ate utilized by the networks and not the TPA. Minutes - Regular Council Meeting June 10, 2003 - Page 16 Mr. Jacobson concluded tha the administrative costs quoted by Entrust were initially wrong, but had now been shown to be com etitive for TPA services. He said that if the Council eliminated the physician discount which he as disputing, the costs between Spohn and Humana would be negligible. Thus, the choice for TP would be between Boon Chapman and Entrust, and he hoped the Council would consider renewi g with them. In his closing remarks, Mr. in a fair and accurate way. He def Council not only consider what w best for the employees. Council that the Humana plan would provi realize approximately $1 million reputation on the line regarding th Assistant City Secretary Ju passed with the following vote: voting "Aye"; Cooper and Noyola 24. MOTION NO. 2003-210 cNeely said that the evaluation was a team effort, completed nded the accuracy of the evaluation results. He asked that the s best for the city's bottom line, but also to consider what was ember Chesney asked Mr. McNeely if he was 100% confident e the same coverage that the employees had now and would n savings. Mr. McNeely said he would put his professional accuracy of the numbers. rez polled the Council for their votes, and the following motion eal, Chesney, Colmenero, Garrett, Kelly, Kinnison and Scott, voting "No". Motion authorizing the de elopment of a three-year contract with two one-year renewal options between the City of Corpus hristi, Texas, and Humana Health to administer the City's self- funded health, dental, and vision be efits plans; to provide and administer a health services network; and to provide pharmacy benefits anagement through Advance PCS. Mayor Neal called for the ity Manager's report. City Manager Noe said that he did not have a report. Mayor Neal called for Coun it concerns and reports. Council Member Colmenero asked Mr. Noe for a report from the Chief o Police on what transpired yesterday with the Southside Pony League. He asked that the Park an. Recreation department provide copies of the lease agreement for the park used by the Southsi. • Pony League. He congratulated Mr. Noe on his report for Channel 10. There being no further business to come before the Council, Mayor Neal adjourned the Council meeting at 10:10 p.m. on . une 10, 2003. * * * * * * * * * * * * *