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HomeMy WebLinkAboutMinutes City Council - 07/18/2006I HEREBY CERTIFY than the foregoinz is a true and correct copy of the minutes of the Regular Meeting of the Corpus Ch.isti (fitv Council of July I r, 2006. which were approved by the City Council on July 25. 2006. SEAL WITNESSETH 'VIS` HAND A'E'I) SEAL, on this the 25`" day of July, 2006. j1 Armando Cha pa City Secretary PRESENT Mayor Henry Garrett Mayor Pro Tem Jesse Noyola Council Members. Brent Chesney Melody Cooper Jerry Garcia Bill Kelly Rex Kinnison John Marez Mark Scott MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting July 18, 2006 - 10:00 a.m. City Staff: City Manager George K. Noe City Attorney Mary Kay Fischer City Secretary Armando Chapa Mayor Garrett called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Pastor Doug Hoffman of Calvary Chapel Coastland and the Pledge of Allegiance to the United States flag was led by Council Member Garcia. Mayor Garrett called for approval of the minutes of the regular Council meeting of July 11, 2006. A motion was made and passed to approve the minutes as presented. Mayor Garrett referred to Item 2 and the following board appointments were made: Corpus Christi Convention and Visitors Bureau Board Kevin Latone (Appointed) Jodi Patel (Appointed) J.J. Gottsch (Appointed) Tom Schmid (Appointed) Bob Becquet (Appointed) Damon Bentley (Appointed) Foster Edwards (Appointed) John Trice (Appointed) Robert Tamez (Appointed) Corbett "Butch" Pool (Appointed) Art Granado (Appointed) Vangie Chapa (Appointed Michael Perez (Appointed Sister City Committee Jennifer Nesmith (Appointed) Regarding the Convention and Visitors Bureau (CVB) appointments, Council Member Kelly attempted to nominate Tom Criser for appointment. City Secretary Chapa stated that according to Council policies, Mr. Criser was ineligible for nomination since he had not filed a resume or bio form in the City Secretary's Office. Mr. Kelly made a motion to postpone the CVB Board appointments until next week, seconded by Mr. Kinnison. The motion failed. Mayor Garrett made a motion to direct staff to bring back an amendment to the CVB contract to add an advisory, non-voting member representing the Corpus Christi Airport to the CVB Board. The motion was seconded and passed. City Secretary Chapa stated that the contract would be Minutes — Regular Council Meeting July 18. 2006 — Page 2 amended accordingly so the Council could make the appointment next week. Later in the meeting, City Secretary Chapa announced that a name had been omitted from the list of candidates for the CVB Board of Directors. He said Mr. Jack Rush had submitted a resume indicating that he resided n Port Aransas. He said that since the Council policies require that a person reside in the city limits to be eligible for service, his name was removed from the list of candidates Mr. Chapa said that it had been brought to his attention, however, that Mr. Rush resided in the Port Royal area, which was in the city limits. Thus, Mr. Chapa said Mr. Rush was an eligible nominee A motion was made, seconded, and passed to reconsider the Council's appointments in the CVB Board's At large category The Council's appointments to the CVB Board did not change. Mayor Garrett called for consideration of the consent agenda (Items 3 - 22). Mr. Johnny French requested that Item 11 be pulled for individual consideration. A motion was made, seconded, and passed to approve Items 3 through 22, constituting the consent agenda, except for Item 11. which was pulled for individual consideration City Secretary Chapa polled the Council for their votes as follows: 3. MOTION NO. 2006-210 Motion approving the purchase of one (1) line jetting truck from Chastang's Bayou City Ford, Houston, Texas for the total amount of $96,040.88. The award is based on the cooperative purchasing agreement with Houston Galveston Area Council (HGAC). The truck will be used by the Wastewater Department. Funding is available in the Capital Outlay Budget of the Maintenance Services Fund. This unit is a replacement to the fleet. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison Marez, and Noyola, voting "Aye"; Scott was absent. MOTION NO. 2006-211 Motion approving the purchase of one (1) pick-up truck from Philpott Motors, Port Neches, Texas for the total amount of $28,390. This award is based on the cooperative purchasing agreement with the Houston Galveston Area Council (HGAC). The vehicle will be used by the Beach Operations Division of the Parks and Recreation Department. This vehicle is a replacement to the fleet. Funding is available in the operations budget of the Parks and Recreation Department The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison. Marez, and Noyola, voting "Aye"; Scott was absent. Minutes — Regular Council Meeting July 18, 2006 — Page 3 5.a. ORDINANCE NO. 026870 Ordinance appropriating $217,310 from the unappropriated fund balance in Fund 5110 Maintenance Services for Vehicle Refurbishment; amending the FY 2005-2006 Operating Budget adopted by Ordinance 026385 by increasing appropriations by $217,310. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, and Noyola, voting "Aye": Scott was absent 5.b. MOTION NO. 2006-212 Motion approving a service agreement with Reliance Truck & Equipment Ltd., San Antonio, Texas for the refurbishment of eighteen (18) refuse truck packer bodies in accordance with Bid Invitation No. BI -0152-06, based on only bid, for an estimated amount of $217,310. Funding is available in the Capital Outlay Budget of the Maintenance Services Fund. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison., Marez, and Noyola, voting "Aye"; Scott was absent. MOTION NO. 2006-213 Motion approving the purchase of one (1) tractor from John Deere Company, Cary, North Carolina for the total amount of $37,960.35. The award is based on the cooperative purchasing agreement with the Houston Galveston Area Council (HGAC). The tractor will be used by the Park Operations Division of the Park and Recreation Department. This unit is a replacement to the fleet. Funding is available in the Operations Budget of the Parks and Recreation Department. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison Marez, and Noyola, voting "Aye"; Scott was absent. 7 MOTION NO. 2006-214 Motion approving the purchase of one (1) trenching machine from EKA, Inc., Stone Mountain, Georgia. in accordance with the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC), for a total amount of $36,261.63. The trenching machine will be used by the Park Maintenance Division of the Parks and Recreation Department. This unit is a replacement to the fleet. Funds are available in the FY 2005-2006 Park Operations Budget. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison Marez, and Noyola, voting "Aye"; Scott was absent. 8. MOTION NO. 2006-215 Motion authorizing the City Manager to purchase specialized equipment in the amount of $543,368.55 using funds from the 2005 State Homeland Security Grant. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison Marez, and Noyola, voting "Aye"; Scott was absent. Minutes - Regular Counc Meeting July 18. 2006 — Page 4 9.a. MOTION NO. 2006-216 Motion authorizinc the City Manager or his designee to accept a grant in the amount of $41,404 from the State of Texas Criminal Justice Division for funding available under the Victims of Crime Act (VOCA) Fund and to execute all related documents. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia. Kelly, Kinnison Marez, and Noyola, voting "Aye"; Scott was absent. 9.b. ORDINANCE NO. 026871 Ordinance appropriating $41,404 from the State of Texas, Criminal Justice Division in the No 1061 Police Grants Fund for funding available under the Victims of Crime Act (VOCA) Fund. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, and Noyola, voting "Aye"; Scott was absent 10.a. RESOLUTION NC) 026872 Resolution authorizing the City Manager or his designee to accept grant funding in the amount of $15,000 from the Texas Department of Transportation for an Impaired Driving Mobilization Selective Traffic Enforcement Project (STEP) grant for DWI enforcement overtime within the Police Department and to execute all related documents. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney, Cooper Garcia. Kelly Kinnison, Marez, and Noyola, voting "Aye"; Scott was absent. 10.b. ORDINANCE NO. 026873 Ordinance appropriating $15,000 from the Texas Department of Transportation for funding of an Impaired Driving Mobilization Selective Traffic Enforcement Project (STEP) grant for DWI enforcement overtime within the Police Department in the No. 1061 Police Grants Fund. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Cooper. Garcia, Kelly, Kinnison, Marez, and Noyola, voting "Aye" Scott was absent. 12.a. RESOLUTION NO. 026875 Resolution authorizing the City Manager or his designee to submit a grant application to the Coastal Bend Council of Governments in the amount of $45,000 for Household Hazardous Waste Disposal, with a city match of $45,000 in the No. 4010 Water Fund, and a total project costs of $90,000. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney, Cooper Garcia Kelly Kinnison, Marez, and Noyola, voting "Aye"; Scott was absent. Minutes - Regular Counci Meeting July 18. 2006 - Page 5 12.b. RESOLUTION NO. 026876 Resolution authorizing the City Manager or his designee to submit a grant application to the Coastal Bend Council of Governments in the amount of $25,000 for approximately 45 Solid Waste Collection Vehicle Signs to promote recycling and anti -litter messages, with no city matching funds The foregoing resolution was passed and approved with the following vote: Garrett, Chesney Cooper Garcia. Kelly, Kinnison, Marez, and Noyola, voting "Aye"; Scott was absent. 12.c RESOLUTION NO. 026877 Resolution authorizing the City Manager or his designee to submit a grant application to the Coastal Bend Council of Governments in the amount of $15,000 for recycling and anti -litter education, with a city match of S10,000 in the No. 1020 General Fund, and a total project costs of $25,000. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney, Cooper. Garcia, Kelly, Kinnison, Marez, and Noyola, voting "Aye"; Scott was absent 13. ORDINANCE NO. 026878 Ordinance approving a $5,000,000 transfer from Street 2005 Capital Improvement Program Fund No. 3541 to and appropriating in the Water 2006 Capital Improvement Fund No. 4090; a $5,000,000 transfer from Street 2005 Capital Improvement Program Fund No. 3541 to and appropriating in the Wastewater 2006 Capital Improvement Program Fund No. 4250; and a $2.000,000 transfer from Street 2005 Capital Improvement Program Fund No. 3541 to and appropriating in the Stormwater 2006 Capital Improvement Program Fund No. 3492 for projects related to the improvements and extensions to the Water, Stormwater, and Wastewater systems; amending FY 2004-2005 Capital Budget adopted by Ordinance No. 026188 by increasing appropriations by $12,000,000. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, and Noyola, voting "Aye": Scott was absent 14. MOTION NO. 2006-217 Motion authorizing the City Manager or his designee to execute Change Order No. 3 to the construction contract with T & C Construction Company Ltd. of Houston, Texas in the amount of $313,278.06 for a total restated fee of $5,945,698.06, for the Downtown Drainage Improvements Phase 1 Project B - New Kinney Street Pump Station. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison. Marez, and Noyola, voting "Aye"; Scott was absent. Minutes - Regular Council Meeting July 18 2006 - Page 6 MOTION NO. 2006-218 Motion authorizing the City Manager or his designee to execute Amendment No. 5 to the Contract for Professional Services with LNV Engineering of Corpus Christi, Texas in the amount of $120,700 for a total re -stated fee of $780,300 for the Oso Water Reclamation Plant Structural/Process Improvements (Clarifier Bridges/Aeration Basin/Fine Bubble Diffuser) The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper. Garcia, Kelly, Kinnison, Marez, and Noyola, voting "Aye"; Scott was absent. MOTION NO. 2006-219 Motion authorizing the City Manager or his designee to execute Change Order No. 1 to the construction contract with S.J. Louis Construction Ltd. of San Antonio, Texas in the amount of $346,583 26 for the Southside Water Transmission Main, Phase 5 project. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison Marez. and Noyola, voting "Aye"; Scott was absent. MOTION NO. 2006-220 Motion authorizing the City Manager or his designee to execute Amendment No. 1 to the testing services contract with Tidal Power Services, LLC of Hallettsville, Texas, in the amount of $22,500 for a restated fee of $47,100 for the O.N. Stevens Water Treatment Plant Alternate Power Supply System Failure Analysis. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia. KeIIy, Kinnison Marez, and Noyola, voting "Aye"; Scott was absent. 18. MOTION NO. 2006-221 Motion authorizing the City Manager or his designee to execute Change Order No. 1 with Ramos Industries Inc. of Pasadena, Texas in the amount of $77,943 for electrical building modifications, controls/metering modifications for the Rincon Diversion Project - Intake Pump Station, Pipeline, Discharge Structure and Hondo Creek Bridge Replacement Project. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, KeIIy, Kinnison Marez, and Noyola, voting "Aye"; Scott was absent. 19.a, MOTION NO. 2006-222 Motion authorizing the City Manager or his designee to execute Change Order No. 6 with Jalco Inc. of Houston, Texas in the amount of $699,833.48 for additional quantities/items, Whalen Drive, the Winnebago Interconnect, and Winnebago Cave -In Repair for the Antelope Street and Salt Flats Area 36"/48" Wastewater Gravity Interceptor Line Project. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper. Garcia, KeIIy, Kinnison Marez, and Noyola, voting "Aye"; Scott was absent. Minutes — Regular Councii Meeting July 18. 2006 — Page 7 19.b MOTION NO. 2006-223 Motion authorizing the City Manager or his designee to execute Amendment No. 3 for engineering services with Goldston Engineering, Inc. of Corpus Christi in the amount of $48,880 for project inspection and construction management services for the Antelope Street and Slat Flats Area 36"!48" Wastewater Gravity Interceptor Line Project. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison Marez, and Noyola, voting "Aye"; Scott was absent. 20. MOTION NO. 2006-224 Motion authorizing the City Manager or his designee to execute Change Order No. 2 to the construction contract with Reese Contracting, Inc. of Corpus Christi, Texas in the amount of $154,693 for the Leopard Street Roadside Safety Improvements, Phase 1. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison Marez, and Noyola, voting "Aye"; Scott was absent. 21. MOTION NO. 2006-225 Motion approving the application from The American Bank Center, in association with Special Olympics Texas, to temporarily close the following street section for the Texas Bayball Ballyhoop Tournament and to waive any and all fees associated with the permit request and traffic control: The northernmost end of Shoreline Boulevard, directly east of the Convention Center, beginning at the intersection of Fitzgerald Street and Shoreline Boulevard northward, beginning at 6.00 a.m., Thursday, July 27, 2006 until 6:00 a.m., Monday, July 31 2006. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Cooper. Garcia. Kelly, Kinnison Marez, and Noyola, voting "Aye"; Scott was absent. 22. ORDINANCE NO. 026879 Ordinance amending Ordinance 026727, abandoning and vacating a 4,387.50 -square foot portion, of a 15 -foot wide utility easement out of Lots 8-10, and Lots 16-18, Block 191, Padre island No. 1 Subdivision, to correct the legal description of the abandoned and vacated easement to Lots 8-10, and Lots 16-18, Block 191, Padres Island -Corpus Christi Section 4; subject to compliance with the specified conditions. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Cooper. Garcia, Kelly, Kinnison, Marez, and Noyola, voting "Aye Scott was absent. Mayor Garrett opened discussion on Item 11 regarding beach cleaning and maintenance on North Padre and Mustang Islands Mr, Johnny French, 4417 Carlton Street, spoke in favor of the city's application for funding to clean and maintain the beach, but stated that the beach grooming was unauthorized because the city had not secured a permit from the Corps of Engineers. He stated that the city should push the material to the west, or face possible sanctions from the Corps. City Manager Noe replied that staff was in regular contact with the Corps of Engineers and Minutes - Regular Council Meeting July 18. 2006 — Page 8 the General Land Office regarding this issue. He said the city, the regulatory agencies, and Mr. French often did not share the same views. City Secretary Chapa polled the Council for their votes as follows 1. RESOLUTION NO. 026874 Resolution authorizing the City Manager or his designee to execute all necessary documents for continued financial assistance for beach cleaning and maintenance on North Padre and Mustang Islands during FY 2006-2007 under the Texas General Land Office's Cleaning and Maintenance Assistance Program. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney, Cooper Garcia Kelly Kinnison. Marez, and Noyola, voting "Aye"; Scott was absent. w 1r Mayor Garrett opened discussion on Item 26, the first reading of the Proposed FY 2005-06 budget adoption ordinance. Assistant City Manager Oscar Martinez stated that at the public hearing last week. the Council directed staff to move $262,330 in debt for the Columbus Ships from the Hotel Occupancy Tax Fund to the 2010 General Obligation Debt fund. He said that staff had incorporated this change in today's proposed ordinance, but noted that no other changes were made. He pointed out that a number of revenue and fee adjustment ordinances would follow the budget adoption ordinance; he said these fee adjustment ordinances were included in the budget at this time. Mr. Kinnison expressed concern about the utility rate increases in the budget. He asked Mr. Martinez for suggestions on how the city could determine what was driving the rate increases, and how to decrease the rates if desired. Mr. Martinez replied that the proposed utility rate increases in this year's budget were driven by the city's aggressive Capital Improvement Program. In August, Mr. Martinez stated that staff hoped to present the CIP program for Council consideration, including a prioritized list of anticipated projects. In addition, he said staff would review the utility rate model to determine whether any adjustments were possible based on the expected costs or timing of the proposed improvements. Finally, Mr. Martinez said staff wished to review the entire capital budgeting system to ensure that the utility rate model was effectively capturing true costs and that the rates relate to those types of capital costs. Mr. Noe agreed that the city's options in dealing with utility rates were linked to the CIP and the utility rate model, and the time to address these issues was during the CIP budget adoption. If past numbers hold true, he said there was approximately a one percent increase associated with every ten million dollars worth of capital improvements. Thus, he said that by reducing its capital program, the city could provide commensurate relief to customers. In addition, he said the city's ongoing rate study in the Water department would lead to a discussion about the rate structure. He said a similar study would probably be commissioned for the Gas department. Mr. Noe also pointed out a third option related to how the city handled utilities infrastructure for bond projects. He said the city's current practice was to pay for the full cost of utilities infrastructure through the utilities fund, as opposed to having the property taxpayers pay a share. Finally, Mr. Noe stated that a fourth option would be to increase the city's economic growth. which would create more revenues and result in less of a burden on the taxpayers Mr Kinnison asked for the timeline on the water rate study. Assistant City Manager Ron Massey replied staff planned to meet with the consultant in the next week or two to discuss their analysis of the expenses, the various rate categories, and any policy implications. He said he hoped Minutes - Regular Council Meeting July 18. 2006 - Page 9 to have the study results in time to coincide with the CIP budget consideration in August or September Mr Kinnison suggested that the city engage a third party review of the rate model. He asked City Manager Noe to develop a timeline for discussions on the city's options regarding utility rates. He asked if the city could still change the utility rates even after adopting the operating budget today. City Manager Noe replied affirmatively, saying that the Council could change the utility rates at any time Mr Noyola asked how much growth the city had seen in the utility fund over the last four to five years. Mr Martinez replied that the combined growth rate for the water, wastewater, and gas departments was four to five percent (customer rate). He pointed out, however, that the gas fund's customer base had actually decreased slightly over time. In response to Mr. Noyola's question, City Manager Noe stated that the growth in the utility fund was insufficient to negate utility rate increases. Mr Noyoia asked it the city planned any improvements in older residential neighborhoods. Mr. Martinez replied that staff was compiling a project list now for the CIP to identify projects, and would provide Mr. Noyola a copy when it was available. Mr. Noyola stated that a number of constituents had complained that their utility rates were increasing to fund capital projects, but none of the improvements seemed to be in their neighborhoods. Assistant City Manager Martinez replied that the ongoing water rate study would look at the classification of customers to ensure that they were paying their fair share of the costs. He said the utility rate model discussion and the anticipated gas rate study would also analyze the costs. Mr Marez asked about the beginning and end of fiscal years in other cities. City Manager Noe replied that a common fiscal year began October 1 because it matched the federal cycle; and because it allowed cities to set their property tax rate based on actual data as opposed to estimating. He said setting the fiscal year was a local decision. Mr. Marez spoke in favor of changing the city's fiscal year to begin October 1 primarily because of the property tax rate issue. He asked how quickly it could be done City Manager Noe replied that it would require some planning, requiring either having a two-month budget or a 14 -month budget during the transition, but it was possible. He said he would provide a report on possible options. Mr Marez also pointed out that new Council members elected in April would be able to have more of an impact on the budget process if the fiscal year began in October. Mayor Garrett and Mr. Noyola spoke in favor of Mr. Marez's proposal. In response to Mr. Kinnison's question, Mr. Martinez replied that the city would receive the certified tax roll from the Nueces County Tax Appraisal District on July 25. He said the overall estimate was in line, and the estimate for new growth was holding firm. City Manager Noe stated that as the system became more complicated, however, it became more difficult for staff and the Nueces County Appraisal District to provide accurate estimates. Mr. Garcia and Mr Kinnison asked for more information on internal auditors in other cities. City Manager Noe replied that staff would provide a report in September or October. He noted that to have the internal auditor report directly to the City Council would require a city charter amendment, Mayor Garrett asked for a report on the number of vacant positions in the city and how long they had been vacant. He also asked questions regarding the number of vacancies in Police and Fire Mayor Garrett called for public comment. Mr. J.E. O'Brien, 4130 Pompano, spoke in favor of Minutes - Regular Council Meeting July 18. 2006 - Page 10 reinstating the internal auditor position, and against utility rate increases. Mr. Bill Kopecky, 3609 Topeka, spoke in favor of an independent internal auditor, and suggested holding a charter amendment election in April 2007 regarding this issue, City Secretary Chapa polled the Council for their votes as follows: 26. FIRST READING ORDINANCE Adopting the City of Corpus Christi Budget for the ensuring Fiscal Year beginning August 1, 2006; to be filed with the County Clerk; appropriating monies as provided in the budget; and providing for severance. The foregoing ordinance was passed and approved on its first reading as follows: Garrett, Chesney Cooper. Garcia, Kelly. Kinnison, Marez, Noyola, and Scott, voting "Aye". Mayor Garrett recognized Mr. Kelly, who stated that he had just now received a resume from Mr. Tom Criser for the Convention and Visitors Bureau (CVB) Board. He made a motion to reconsider the Council's at -large appointments to the CVB Board to consider Mr. Criser's appointment, seconded by Mr. Kinnison The motion failed. Mayor Garrett referred to the presentations on the day's agenda. Director of Human Resources Cynthia Garcia reported on Item 23, a third quarter report of the Health Benefits/Risk Management fund. Ms. Garcia referred to a graph illustrating the number of claims filed by plan. She said the average number of claims filed in the third quarter was 6,341, which was practically identical to last year's average of 6,343. Ms Garcia referred to another graph depicting the dollars paid by plan including prescriptions. She said the average cost per month in the third quarter was $1.895 million, a $425,000 increase over the average monthly cost for the same period last year. Specifically, she said that Citicare's cost between August and April 2006 rose by 18.59 percent while the Fire plan's costs increased by 76.63 percent over the same period. Ms. Garcia referred to a graph showing the average cost per claim forthe quarter, which was $299 compared with last year's third quarter claim cost of $234. Mr. Garcia referred to a chart providing a third quarter (August - April) comparison between Citicare, Fire, Police, Citicare Basic, and Pharmacy plan costs. She said Citicare Police increased by 6.96 percent; Citicare Basic - 78 percent; and Pharmacy - 13.87 percent. Since the rising trend line was disturbing, she said the city was presently evaluating a proposal for professional services to determine the feasibility of implementing a health saving account, together with high deductible health plans, as defined :n the IRS regulations. She said the plans were designed to provide employees with pre-tax dollars to pay for deductibles, medical expenses and, upon retirement, for retirement premiums. She said staff would bring a proposal for the Council's consideration in late September or early October. Mr Kinnison expressed concern about the rising trends. In response to Mr. Kinnison's question, Ms. Garcia replied that the city's actuaries had not reviewed the third quarter numbers yet, but they had predicted that the Fire and Citicare plan costs would increase. She added that staff had also spoker with Humana last quarter to implement changes to next year's plan to curtail the Minutes - Regular Counci1 Meeting July 18 2006 - Page " 1 `bleeding' She noted, however that the city was still within budget because the actuarial recommendations had been relatively accurate. Mr. Kinnison asked staff to keep a close eye on the fund so changes could be made, if needed, as soon as possible. Ms. Garcia discussed the Workers' Compensation and liabilities fund. She referred to a graph comparing incurred costs vs. paid costs for August through April. She said there were 731 claims during the first nine months of the fiscal year, nine less than last year, but pointed out that the incurred cost was $1,228,906 compared to $757.833 last year. She said the amount paid on the claims through April 2006 was $656,521 Ms Garcia referred to a graph illustrating the year to date claims count comparison by department for the period ended April 30. She said the Police, Fire, and the All Other categories have lower claims numbers compared to last year. However, she said the combined incurred costs n these categories were $275,358. She said Solid Waste, Streets, Water, Wastewater, and Gas had higher claims numbers and higher Incurred costs, with a combined increase of $293,278. Ms Garcia referred to a graph depicting the year to date claim count by type of injury. She said contusions were down. 92 to 76, but strains and sprains were increased by 15. Ms. Garcia discussed the general liability claims. She referred to a graph depicting the liability claims count by department for the period ending April 30. She said claims were down compared to last year, from 576 to 500; however, the incurred cost amount rose from $630,000 to $651,900 for the same period. Ms. Garcia referred to a graph illustrating the dollars paid in current year for previous years' claims. She also pointed cut a graph depicting all types of claims for the period ended April 30. She said all categories were down except for water and wastewater claims, which rose by 27 percent. She vehicle damages, the city's largest claim type, continued to fall from 327 in 2004, to 291 in 2005, and to 264 in 2006. Mr Noyola asked it the Health Benefits division had any employees who were experienced, licensed insurance agents. Ms. Garcia answered that Health Benefits had customer service representatives with insurance experience, but they were not licensed. Mr. Noyola stated that the city should hire Health Benefits employees who were licensed so that they could make recommendations to city employees during open enrollment. Ms. Garcia replied that staff did not make recommendations; they tried to educate employees about the plans to allow them to make the choice, Mr Noyola stated that he understood employees were signing up and paying for benefits that they didn't need. City Manager Noe replied that the city tried to limit the number of add-on nsurance programs to make this less likely to happen Ms. Garcia added that this year, staff did not allow insurance agents to make presentations to city employees; rather, staff complied and distributed the information. Mr. Garcia agreed with Mr. Noyola's suggestion to provide more assistance to city employees with their insurance elections, especially retirees on fixed incomes. Mayor Garrett opened discussion on Item 24 regarding the classification and compensation plan. City Manager Noe explained that the ordinance was a "housekeeping" item prepared every year that incorporated ali the adjustments made in the annual budget. Director of Human Resources Cynthia Garcia stated that this year, the ordinance included two changes related to holiday leave and sick leave. Regarding holiday leave, she said staff recommended that the Council adopt a provision to prohibit employees on leave without pay to receive pay for a holiday occurring during their leave. Regarding sick leave, she said staff was recommending that employees on nscheduied leave the dale before, the day of, or the day after a city -designated holiday be required Minutes — Regular Council Meeting July 18, 2006 — Page 12 to bring a note from a medical provider to use sick leave for those days. in response to Mr Kinnison's question, Ms. Garcia stated that the proposed revisions to Chapter 39 of the city code were TMRS provisions that were adopted some time ago and needed to oe incorporated into the city's policy. Mr Kelly noted that in the FY 2006-07 budget, the city had not included any funding for the Comp Study; he asked if the city had reached its goal of 100 percent of market for all employees. City Manager Noe replied that the city did not have sufficient funding to incorporate the last phase of the Comp Study. He said if the city wanted to adopt the effective tax rate, and not garner the additional revenue from the higher values, then the city needed to save money. He said the proposed budget did include more aggressive provisions for merit pay programs. Mr. Kelly asked how far the city was from reaching its goal. Ms. Garcia replied that depending on the plan and the cost of inflation, the city was at approximately at 90 to 95 percent of market. She said that because the city had not adjusted its ranges while other cities had, the city's plan was slipping. Mr. Kelly asked how much money the city would need to provide a three percent raise across the board. Mr. Martinez replied the city would need approximately $2 million. Ms. Garcia pointed out that the city was continuing with its skit' -based program for labor-intensive positions, adding two departments a year There were no comments from the public. City Secretary Chapa polled the Council for their Cotes as follows 24. FIRST READING ORDINANCE Amending the Code of Ordinances by revising Section 39-300 Policy; revising Section 39- 303, Standard Classifications, Pay Plans, Pay Grades, and Ranges, as amended; revising Section 39-308 Temporary Employees; revising Section 39-312 Retirees Participation in the City's Group Health Insurance Program at Group Rates; revising Section 39-318 Discretionary Payment for Involuntary Termination, revising Section 39-324 Holidays; revising Section 39-333 Plan I Personal Leave; revising Section 39-334 Plan I Bereavement Leave; revising Section 39-337 Plan I Use of Sick Leave; revising Section 39-338 Plan I Use of Personal Leave and Vacation in lieu of Sick Leave; revising Section 39-339 Plan Payment of Sick Leave Upon Termination; revising Section 39-348 Plan 11 Payment of Vacation Leave Upon Termination; revising Section 39-349 Plan II Personal Leave for Plan it Employees; revising Section 39-352 Plan II Use of Sick Leave; revising Section 39-353 Plan II Use of Personal Leave and Vacation in lieu of Sick Leave; revising Section 39-355 Plan H Payment of Sick Leave Upon Termination; revising Section 39-360 Leaves with Pay Deemed Beneficial to City Operations; repealing all other ordinances and rules, or parts of ordinances and rues, in conflict with this ordinance; providing for an effective date and providing for severance. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was abseri. Mayor Garrett called for a brief recess to present proclamations. *x Mayor Garrett called for petitions from the audience. Mr. Warren Fletcher, 3100 Santa Fe, Minutes — Regular Council Meeting July 18, 2006 -- Page 13 spoke regarding a lawsuit he planned to file against the Police department. Mr Rod Miller with the Art Center of Corpus Christi asked the Council to consider his organization's request to ncrease their Hotel Occupancy Tax funding from $15,000 to $60,000 annually. Mr. J.E. O'Brien, 4130 Pompano, stated that the Taxpayers Association would support a charter amendment to appoint an internal auditor who reported directly to the City Council. He also mentioned issues regarding the Bayfront Plan and the operating budget. Mr Rolando Garza, speaking as a city employee representative, asked the Council to direct city administrators and superintendents to treat workers and others with dignity and respect. He also asked for an update on the Sunnybrook/Manshiem improvements project. Mayor Garrett announced the executive session, which was listed on the agenda as follows: 27. Executive session under Texas Government Code Section 551.071 regarding In re Tomas Duran, Debtor, Bankruptcy No. 04-21514-C-7, including all related Adversary Proceedings and removed state court action pending as Adversary No. 04-2143-C, City of Corpus Christi �. Entrust, Inc.. Tcmas Duran, and Duran Insurance Brokerage (formerly Cause No. 04- 3928-G, City of Corpus Christi v Entrust, Inc. et al, in the 319th Judicial District Court of Nueces County, Texas), and also regarding Cause No. C-04-500, Tomas Duran v. City of Corpus Christi, In the United States District Court for the Southern District of Texas, Corpus Christi Division with possible discussion and action related thereto in open session. The Council went nto executive session. The Council returned from executive session. Mayor Garrett opened discussion on Item 25 regarding a number of fee increases and/or new proposed fees associated with the proposed FY 2006-2007 budget City Manager Noe pointed out that there was correction needed on Item 25.a. regarding the gas rates, and staff distributed a corrected ordinance for their review. Mr. Chesney made a motion to amend Item 25.a. to correct the gas rates, seconded by Mr. Garcia, and passed. Mr Garcia asked about Item 25.n,. a proposed $10 fee for library books. Assistant Director of Management and Budget Eddie Houlihan stated that the library system had a substantial amount of uncollected library fines. He pointed out that the $10 collection fee would only apply to accounts that were unpaid for more than 60 days or totaling $25. He said staff was going to assess the fee on a trial basis to assess its effectiveness In response to Mr. Garcia's question, Director of Libraries Herb Canales stated that a $25 fee was usually due to a lost item. If an item was lost, the cardholder would pay for the item but would not have to pay any additional late fees. He said the ordinance limited the fine amount to the price of the book. There were no comments from the public. City Secretary Chapa polled the Council for their votes as follows Minutes - Regular Counc Meeting July 18, 2006 -- Page 14 25.a FIRST READING ORDINANCE Amending the Code of Ordinances, City of Corpus Christi, Chapter 55, Utilities, regarding water, gas and wastewater rates: providing for severance; providing for an effective date; and providing for publication. The foregoing ordinance was passed and approved on its first reading as amended with the following vote: Garrett, Chesney, Garcia, Kelly. Kinnison, Marez, Noyola, and Scott, voting 'Ave"; Cooper was absent 25.b FIRST READING ORDINANCE Amending the Code of Ordinances, City of Corpus Christi, Chapter 21, Garbage, trash and other refuse, regarding increases to resource recovery fees; providing for penalties; providing for severance; providing an effective date; and providing for publication. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent. 25.c FIRST READING ORDINANCE Revising Sections 23-57 (3)(b), 19-33(b), 19-49(a), 19-54(b), and 19-56, Code of Ordinances, by increasing health department fees relating to pool inspections, food establishment health permits, food manager permits, and food handler permits; restructuring fee provisions related to specific food establishment health permits; revising the training requirement and term of food handler permits; revising the term of food manager permits; providing for severance; providing for penalties; providing for publication and providing an effective date. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absert. 25.d. FIRST READING ORDINANCE Revising Section 3-42(b), Code of Ordinances, to increase fees for billboard signs; providing for severance; providing for penalties: providing for publication and providing an effective date. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was abser. 25.e FIRST READING ORDINANCE Amending the Code of Ordinances Chapter 3 1/2 Alarm Systems, by repealing the existing Chapter and adopting a new Chapter 3'/2 Alarm Systems providing for severance; providing for penalties; and providing for publication. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absert Minutes — Regular Council Meeting July 18. 2006 — Page 15 25.f FIRST READING ORDINANCE Amending the Code of Ordinances, City of Corpus Christi, Chapter 9, Aviation, by creating Sections 9-65 through 9-67 providing for rental uses and rates; rental and user agreements; city owned equipment; providing an effective date; providing for severance; and providing for publication The foregoing ordnance was passed and approved on its first reading with the following vote: Garrett, Chesney. Garcia. Kelly, Kinnison, Marez, and Scott, voting "Aye"; Noyola abstained; Cooper was absent 25.g. FIRST READING ORDINANCE Amending the Code of Ordinances, City of Corpus Christi, Chapter 9, Aviation, by creating Section 9-64 providing for a federal inspection fee of $2.50 per international flight passenger. assessed to the airline; providing for an effective date; providing for severance; and providing for publication. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Chesney, Garcia Kelly, Kinnison, Marez, and Scott, voting "Aye"; Noyola abstained; Cooper was absent 25.h. FIRST READING ORDINANCE Amending the Code of Ordinances, City of Corpus Christi, Chapter 2, Administration, creating a library collection fee of $10 to be assessed on any account of $25 or more that is unpaid for 60 days or more. and is referred for collection to a private vendor; providing for an effective date; providing for severance; and providing for publication. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Chesney. Garcia. Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent. 25.i RESOLUTION NO. 026880 Resolution authorizing adjustment of Parks, Recreation, Cultural and Leisure Time Activities Rental and Recreational Fees; adding new rental fees and recreational fees for Fiscal Year 2006-2007: providing for publication; providing for effective date; and providing for severance. The foregoing resolution was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent. Mayor Garrett called for the City Manager's report. City Manager Noe reported that the following items were scheduled for consideration during next week's Council meeting: final reading of the budget adoption ordinance; beginning of tax rate adoption process; Automated Meter Reading (AMR) update; and five zoning cases (two controversial). Mayor Garrett asked City Manager Noe if it would be possible to hire a contractor to assist the city with mowing grass on city property. He noted that the recent heavy rains had resulted in Minutes - Regular Counc i Meeting July 18 2006 - Page 16 high grass and weeds citywide, and the city was behind in its mowing efforts. City Manager Noe replied that the city did not have funding for additional contracting; however, he said he could provide a status report on staffs efforts. Mr. Scott noted that the Caller -Times featured an article about a woman in the Pope Park area who had taken the initiative to mow the park. He asked the City Manager to commend the individual for her efforts. Mayor Garrett called for Council concerns and reports. Mr. Garcia stated that citizens had reported that 18 -wheelers were parking in the seawall parking lot during the weekends. He said the 18 -wheelers would tear up the parking lot because the lot wasn't engineered to handle their weight. Mr. Garcia said he saw four 18 -wheelers parked in the lot last weekend, taking up approximately 60 parking spaces. City Manager Noe said staff would look into the matter. Mr. Scott spoke regarding a concern that he and Mr. Kinnison had regarding TxDOT signage. City Manager Noe replied that staff was looking into the issue. He said the Governor's Office decided what messages appeared on the signs. He said staff had shared their concerns with TxDOT and were waiting for a response. Mr. Scott stated that the messages on the signs encouraged individuals to top off their tanks for hurricane season, effectively promoting air pollution and scaring the tourists. He suggested that TxDOT modify their hurricane season messages in Corpus Christi to run primarily when there was an actual storm threat. Mr. Kelly reported that the Northwest Business Association had a longstanding wish to have a welcome sign at the city's entry point by the river. He said someone had suggested erecting flagpoles with large-scale U.S and Corpus Christi flags in Labonte Park. He asked City Manager Noe to look into the costs Mr. Noyola asked who was responsible for the signage that greeted visitors coming into the downtown area from IH -37 Assistant City Manager Massey replied that the signs were provided by the individual organizations and the city mounted them. Mr. Noyola noted that some of the signs were in poor condition City Manager Noe said staff would look into it. Mr. Noyola asked what was going to happen to the Columbus Ships now that the city was responsible for them. City Manager Noe answered that the Friends of the Museum group was working with an outside consultant to develop a master plan for the museum, including the incorporation of the Columbus Ships. He said he expected a report on the master plan at the end of the calendar year. There being no further business to come before the Council, Mayor Garrett adjourned the Council meeting at approximately 1:15 p.m. on July 18, 2006.