HomeMy WebLinkAboutMinutes City Council - 06/14/2011 - WorkshopMINUTES
CITY OF CORPUS CHRISTI, TEXAS
Council Workshop
June 14, 2011 - 8:30 a.m.
PRESENT
Mayor Joe Adame
Mayor Pro Tem Nelda Martinez*
Council Members:
Chris Adler
Larry Elizondo, Sr.
Priscilla Leal
John Marez***
Mark Scott
Linda Strong*
ABSENT
Kevin Kieschnick
*Arrived at 8:45 a.m.
**Arrived at 9:01 a.m.
***Arrived at 10:57 a.m.
City Staff:
City Manager Ronald L. Olson
City Attorney Carlos Valdez
City Secretary Armando Chapa
Mayor Adame called the meeting to order in the Council Chambers of City Hall and 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
Enterprise Funds including the customer growth rates; a summary of the utility fund balances;
summary of working capital; the proposed utility rate increases; components of the water and
wastewater rate increases for residential customers; a sample utility bill; programmatic utility debt
service by year; total utility debt service; programmatic average annual utility debt service; Gas
revenues and expenditures; gas consumption; water consumption for raw and treated; revenues
and expenditures for Storm Water, Water, and Wastewater; summary of fund balances and budgets
for Airport, Golf Center, and Marina; and the remaining budget calendar.
The following topics pertaining to this item were discussed: the annual average rate change
between water and wastewater; the projected utility fund balance excluding Choke Canyon;
projected additions to the capital reserve; policy uses for strategic and capital reserves to lower
excessive debt; the total bond conveyance; local management of working capital; diversion of water;
impact of block rates due to consumption; historical perspective on storm water rates; consideration
of storm water rate separate from water rate; history of utility transfer from storm water; the use of
storm water and gas capital reserves to minimize rate increase; using the excess fund balance to
pay down debt on existing projects; status of the looping of dead end water mains; the reason
personnel costs increase even with the reduction of full-time equivalents in the Water fund; the
savings in Water operations; winter averaging rates; consolidation of utility departments; the
increase in Airport operating costs; public safety at the Airport; status of the FBO contracts at
Airport; the sale of the Gas Department and an analysis on the value of the Gas' Department; and
consideration for assisting the Art Museum with utility costs.
Council Member Scott requested a breakdown of block rate consumption of water. Council
Member Martinez requested additional information on the capital reserve fund. Council Member Leal
asked to set up a meeting with City Manager Olson this week.
INDEXED
Minutes — Regular Council Meeting
June 14, 2011 — Page 2
City Manager Olson requested to schedule a deliberation meeting with the City Council to
discuss and give final direction to staff prior to the public hearing on June 28th. A brief discussion
ensued regarding the schedule for canvassing the results of the runoff election and the swearing-in
of the new City Council. There was a general consensus of the Council to conduct the swearing-in
ceremony of the new Council and the budget deliberation on Friday, June 24th.
Chair of the Administration Committee Mark Scott referred to the discussion on the City
Auditor. Mr. Scott stated that the Mayor gave direction to the Administration Committee to review the
appointment process for the City Auditor position and the Administration Committee reviewed and
considered two options including hiring internal staff and contracting outside services for the
position. Mr. Scott reported that the Administration Committee met last week and received valid
comments from the public regarding the City Auditor being a full-time staffing position. Mr. Scott
stated that the Administration Committee is recommending presenting the two options to the full
Council for consideration.
Assistant City Manager Oscar Martinez introduced the presentation team including Interim
Director of Human Resources Joan McKaughan and Procurement Manager Paul Pierce. Mr.
Martinez referred to a powerpoint presentation including the charter language approved by voters;
timeline; desired outcomes; establishing the direction regarding contracting or hiring of full time staff;
option 1 - hiring of full time staff; applications received; option 2 - contracting for internal audit
services; request for proposals; summary of evaluation matrix for option 2; internal auditor, council,
and executive staff working relationship; examples of other governmental entities definition of
working relationship; identifying suggested projects; and council direction. Mr. Martinez also
provided the minimum qualifications and job descriptions for the positions of City Auditor, Associate
Auditor, and Senior Accountant.
The following topics pertaining to this item were discussed: the projected number of hours for
an outside auditor to conduct six (6) audits on average per year; the working relationships between
the internal auditor, Council, and executive staff; the ordinance to develop policies, procedures and
protocols to govern the working relationship; suggested projects; whether the internal auditor should
receive recommendations for special audits by the City Manager; support for an internal auditor
position; and transparency.
City Manager Olson commented that an internal auditor reviews the performance of an
organization based on established ordinances and polices to determine compliance of rules and
procedures. Mr. Olson added that the difference between the internal auditor and the performance
improvement team is that the internal auditor reviews performance that has already occurred and
the performance improvement team will deal with issues moving forward. Mr. Olson recommended
assignments for consideration for the internal auditor to work on initially including auditing utility
services, delinquency of Development Services & Municipal Court fees; receivable on ambulance,
red Tight, and utilities; and review of the purchasing system.
After discussion by the Council members, there was a general consensus to have the
Administration Committee continue with the recommendation of two applicants for the internal
staffing position and perform background checks; come back with an ordinance developing the
policies and procedures that govern the working relationship; verify the job descriptions; and
suggest an initial list of audit projects, subject to City Council approval prior to August 1St
*************
There being no further business to come before the Council, Mayor Adame adjourned the
Council workshop at 11:15 a.m. on June 14, 2011.
I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Workshop
Meeting of the Corpus Christi City Council of June 14, 2011 which were approved by the City
Council on June 21, 2011.
WITNESSETH MY HAND AND SEAL, on this the 21st day of June, 2011.
Armando Chapa
City Secretary
SEAL