HomeMy WebLinkAboutMinutes City Council - 11/17/2009 - WorkshopPRESENT
Mayor Joe Adame
Mayor Pro Tem Priscilla Leal
Council Members:
Chris N. Adler*
Brent Chesney**
Larry Elizondo, Sr.
Kevin Kieschnick
Nelda Martinez
Mark Scott
ABSENT
John Marez
*Arrived at 9:48 a.m.
**Arrived at 9:56 a.m.
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Council Workshop
November 17, 2009 — 9:45 a.m.
City Staff:
City Manager Angel R. Escobar
Interim City Attorney Lisa Aguilar
Assistant City Secretary Mary Juarez
Mayor Adame called the Workshop Meeting to order in the Council Chambers of City Hall.
Mayor Adame verified that the necessary quorum of the Council and the required charter officers
were present to conduct the meeting.
Assistant City Manager Oscar Martinez referred to a powerpoint presentation on the three
primary factors affecting the general fund budget including sales tax, GASB 45, and the Texas
Municipal Retirement System (TMRS); the total budget revenue shortfalls; the recommended
options to address the revenue shortfalls for fiscal year 2010 and options for fiscal year 2011.
The following topics pertaining to the item were discussed: the average monthly decrease in
sales tax from last fiscal year's first quarter sales tax; how other cities outside the TMRS system are
funding retirement; the City's required increase for the TMRS contribution rate and the total TMRS
contribution; the unfunded liability; whether the city is required to contribute to the TMRS program;
contract re -opener for Police union; reviewing the vesting requirements to reduce the Tong -term
GASB liability; timing issues associated with TMRS; the earliest time the City could opt out of TMRS;
resolving the issue of GASB 45; the challenge of how the liability for GASB 45 will be recorded for
FY09; the option for reserving only the city's contribution for GASB 45; the number of meetings with
the unions; the recommendation from the outside consultant regarding GASB 45; the
recommendation to have a hard freeze of positions across all City departments; evaluating part-time
positions to eliminate TMRS contributions; eliminating or reducing cell phone policy; the mileage
reimbursement program; additional options to address shortfalls; engineering fees; suspension of
the leave buy-back program; and furlough days.
President of the Corpus Christi Police Officers Association Mike Staff stated that there have
been discussions between staff and the unions on the GASB issue but reported that the first actual
meeting was held on November 5th. Mr. Staff said there are concessions that still need to be worked
out and that if a decision was made today to record the liability, it would be irreversible.
Council Member Adler asked for the total amount of the City's TMRS contribution. Interim
Director of Finance Constance Sanchez stated that the total amount including the required increase
is approximately $28 million. Council Member Chesney recommended that the Council set up a
series of meetings with the unions and appoint council members to participate in the discussions to
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Minutes — Council Workshop
November 17, 2009 — Page 2
resolve the GASB issue. Mayor Adame directed staff to place the GASB 45 discussion on the
agenda for December 15th and announced that he would appoint the council members to be part of
the discussions between staff and the unions. Council Member Chesney recommended that the City
Council Administration Committee participate in the GASB discussions and the Council concurred.
Council Member Kieschnick requested that staff provide a report on the options and issues between
the unions and staff. Council Member Kieschnick also requested that staff survey other businesses
in the area regarding mileage reimbursement for employees.
The Council directed staff to proceed with the consideration to reduce the mileage
reimbursement program by reducing the amount paid per mile. Mayor Adame asked staff to
consider including options of reduction of salaries and termination to address the shortfalls. Council
Member Kieschnick asked staff to look at options for selling unused park land; reducing retiree
benefits; reducing festival funding; hiring an outside auditor; hiring a grant writer; and reducing
unnecessary documents. Council Member Scott recommended considering ways to reduce cost of
private participation for city work. Council Member Leal asked staff to consider alternative holidays
as furlough days.
Council Member Chesney requested that the workshop meeting be delayed until after the
regular Council meeting to allow staff time to provide the Council with cost savings amounts
associated with the recommended options to address the sales tax revenue shortfalls and the
council concurred.
The Council recessed the workshop at 11:37 a.m.
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The Council reconvened the workshop at 5:50 p.m. Assistant City Manager Oscar Martinez
provided a powerpoint detailing the costs reductions associated with the options to address the
sales tax revenue shortfall and stated that staff would prepare an ordinance for approval in January
based upon direction by the City Council and staff finalization of budget reduction measures.
The following topics pertaining to this item were discussed: the estimate for temporary
employees; when staff will receive sales tax revenues for December.
Assistant City Manager Martinez stated that staff will be recommending an additional $2
million reduction in January to anticipate additional sales tax shortfalls.
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There being no further business to come before the Council, Mayor Adame adjourned the
Council workshop at 6:00 p.m. on November 17, 2009.
* * * * * * * * * * * * *
I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Council
Workshop of the Corpus Christi City Council of November 17, 2009, which were approved by the
City Council on December 8, 2009.
WITNESSETH MY HAND AND SEAL, on this the 8th day of December, 2009.
Armando Chapa
City Secretary
SEAL