HomeMy WebLinkAboutMinutes City Council - 08/21/2023 - WorkshopI 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 August 21, 2023, which were
approved by the City Council on September 19, 2023.
WITNESSETH MY HAND AND SEAL, on this the 19th day of September 2023.
(S E A L)
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Rebecca Huerta
City Secretary
Corpus Christi, Texas
City of Corpus Christi
Rebecca Huerta, City Secretary
P.O. Box 9277
Corpus Christi, Texas 78469-9277
(361) 826-3105
rebeccah@cctexas.com
SCANNED
City of Corpus Christi
Meeting Minutes
City Council
1201 Leopard Street
Corpus Christi, TX 78401
cctexas.com
Monday, August 21, 2023
9:00 AM Council Chambers
FY 2023-2024 Budget Workshop: Including but not limited to Water and Wastewater
A. Mayor Paulette Guajardo to call the meeting to order.
Mayor Guajardo called the meeting to order at 9:07 a.m.
B. City Secretary Rebecca L. Huerta to call the roll of the required Charter Officers.
City Secretary Rebecca Huerta called the roll and verified that a quorum of the City
Council and the required Charter Officers were present to conduct the meeting.
Charter Officers: City Manager Peter Zanoni, City Attorney Miles Risley and City
Secretary Rebecca Huerta
Note: Council Member Barrera arrived at 10:24 a.m.
Present: 9 - Mayor Paulette Guajardo,Council Member Roland Barrera,Council Member Gil
Hernandez,Council Member Michael Hunter,Council Member Mike Pusley,Council
Member Dan Suckley,Council Member Everett Roy,Council Member Jim Klein, and
Council Member Sylvia Campos
C. BRIEFINGS:
1. 23-1392 FY 2023 - 2024 Budget Workshop: Including but not limited to Water and
Wastewater
Chief Operations Officer for Corpus Christi Water Michael Murphy and Assistant Director
of Support Services for Utilities Reba George presented information on the following
wastewater topics: FY 2023-2024 proposed budget; Corpus Christi Water -an enterprise
fund; mission statement; organizational structure; surface water sources volume and
infrastructure; about Corpus Christi Water -a superior rated water system; consent
decree; FY 2023 wastewater achievements; FY 2024 proposed budget wastewater fund:
$83.7M; FY 2024 proposed budget by service ($ in millions); year -over -year costs
services ($ in millions); year -over -year costs chemicals; year -over -year costs
miscellaneous; wastewater FY 2023 CIP progress strategic plan; wastewater FY 2023
CIP progress; FY 2024 wastewater CIP: $126.3M; FY 2024 wastewater CIP; 2024
proposed wastewater rates; wastewater charges; wastewater FY 2022 annual billed
revenue; amended proposed wastewater rates; 2024 wastewater rate adjustments
effective January 1, 2024 -December 31, 2025; and 2024 sample bills: wastewater.
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Meeting Minutes August 21, 2023
Project Manager at NewGen Strategies & Solutions Andy McCartney presented
information on the following water and sewer rate topics: Corpus Christi Water and
sewer rate study; agenda; project team introduction; NewGen Strategies and Solutions,
LLC; project team; importance of local officials in utility management; FY 2024 and FY
2025 results for wastewater system; and FY 2024 and 2025 proposed retail rates for
wastewater.
Council Members, City Manager Zanoni, Chief Operations Officer for Corpus Christi
Water Murphy, Assistant Director of Support Services for Utilities George, and Project
Manager McCartney discussed the following wastewater topics: the importance of
expanding public outreach and education; a recommendation to use fund balance in lieu
of increasing wastewater rates; a concern about the credit rating impact; why outside city
limits wastewater rates are less than inside city limits; and if wastewater rates are not
increased, how will it affect the fund balance; McCartney's team found a 28% discount for
commercial ICL rates built into the formulas 10-20 years ago and that new rates remove
that discount.
Chief Operations Officer for Corpus Christi Water Michael Murphy and Assistant Director
of Support Services for Utilities Reba George presented information on the following
water topics: FY 2023 water achievements; performance measures; FY 2024 proposed
budget water fund: $160.6M; FY 2024 proposed budget services ($in millions);
year -over -year costs services; year -over -year costs labor; year -over -year costs
chemicals (per ton); year -over -year costs miscellaneous; water FY 2023 CIP progress
5 -year strategic plan; Water FY 2023 CIP progress; Water CIP large volume user
projects; Water FY 2024 CIP: $222.2M; Water FY 2024 CIP; FY 2024 water drought
surcharge exemption fund; FY 2024 proposed water rates; water customer classes;
water charges; water system functionalization; water FY 2022 annual billed usage and
revenue; amended proposed water rates; 2024 raw water rate adjustments; 2024 retail
water rate adjustments; 2024 residential volume rate adjustments; 2024 commercial
volume rate adjustments; 2024 large volume water rate adjustments; 2024 sample bills:
water; 2024 water rate adjustments; 2024 sample monthly charges; all customers by
billed usage FY 2022; Corpus Christi water customers; large volume, wholesale and raw
water customers; large volume billing and cost of service; inside large volume cost of
;,.:rvice; and outside large volume cost of service.
Project Manager at NewGen Strategies & Solutions Andy McCartney presented
information on the following topics: agenda; background and methodology; contractual
customer methodology and approach to rate model development; approach to rate
model development and policy considerations for rate design; cost of service
methodology; study recommendations; cost drivers for FY 2024 and FY 2025; main cost
drivers and proposed changes; contractual customer rates for FY 2024 and FY 2025; FY
2024 and FY 2025 net revenue requirement for total water system; FY 2024 results for
non -rate payer raw water; FY 2024 results for raw water diversion; FY 2024 results for
treated water; FY 2024 and FY 2025 results for network water; FY 2024 and FY 2025
proposed rates; retail cost of service for FY 2024 and FY 2025; FY 2024 and FY 2025
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Meeting Minutes August 21, 2023
net revenue requirement for total water system; calculation of the retail water net revenue
requirement; FY 2024 retail net revenue requirement calculation; FY 2025 retail net
revenue requirement calculation; allocation factors; impact of large volume customers on
retail CCW system; original proposed retail water rates for FY 2024 and FY 2025; FY
2024 and FY 2025 proposed retail rates; and comparison of cost of service to revenues.
Council Members, City Manager Zanoni, Chief Operations Officer for Corpus Christi
Water Murphy, Assistant Director of Support Services for Utilities George, Director of
Water Utilities Andrew Molly, Engineer Nick Winkelmann, Water Resource Manager
Esteban Ramos, and Project Manager McCartney discussed the following topics:
ensure industry is conserving water; to possibly set aside flouride system improvements
for the meantime; residential water rates are high because they are subsidizing the cost
for industrial users; cost of chlorine has increased significantly due to corporation and
manufacturing problems; a recommendation to equalize volumetric rates for water users
inside and outside city limits; and whether there will be a significant impact on the bond
rating if rates are increased.
D. ADJOURNMENT
There being no further business, Mayor Guajardo adjourned this meeting at 2:21 p.m.
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