City Council - Regular Meeting
The City Council adopted the Fiscal Year 2026-2027 Operating and Capital Budgets. After initial failure and reconsideration, a property tax rate of $0.599774 per $100 valuation, representing a 0.50% increase over the no-new-revenue rate, was approved. Employee compensation was amended to include a 1% COLA and 2% merit-based pay.
About this meeting
- Government Body
- City Council
- Meeting Type
- City Council
- Location
- Corpus Christi, TX
- Meeting Date
- September 8, 2026
Transcript
936 sections
Good morning, everyone. I'd like to call this meeting to order. Welcome to City Hall. Welcome to Council Chambers. It's wonderful to be back with you all today, so thanks for joining us as well. This morning, our invocation will be given by Father William Campbell with the Church of the Good Shepherd. Father?
Let us pray. O Lord, our Governor, bless the leaders of our land, that we may be a people at peace among ourselves and a blessing to other nations of the earth. To the president and members of the cabinet, to governors of states, mayors of cities, and to all in administrative authority, grant wisdom and grace in the exercise of their duties. To senators and representatives and those who make our laws in states, cities, and towns, give courage, wisdom, and foresight to provide for the needs of all our people. and to fulfill our obligations in the community of nations. To the judges and officers of our courts, give understanding and integrity that human rights may be safeguarded and justice served. And finally, teach our people to rely on your strength and to accept their responsibilities to their fellow citizens, that they may elect trustworthy leaders and make wise decisions for the well-being of our society, that we may serve you faithfully in our generation and honor your holy name. Amen.
Amen. Thank you, Father. And the Pledge of Allegiance to the flag of the United States and to the Texas state flag will be led by Melina Guzman. She is a senior. at South Texas Science and Technology. She's an honor roll scholar and student council senior class officer.
Melina. Please join me in the Pledge of Allegiance. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation, under God, indivisible, with liberty and justice for all. Please join me in honoring the Texas Pledge. Honor the Texas flag. I pledge allegiance to thee, Texas, one state, under God, one and indivisible.
Melina, thank you, and good luck in your studies. Thank you. Yes, ma'am.
City Secretary Rebecca what that would you please call the roll. Mayor Paul at what heart of the present Council members rolling but at a year so the compost Eric and to kill it none this year Kaelin Paxson. Everett Roy. Mark Scott. Carolyn bond. City manager Peters and any president interim city attorney back price president. Mayor and Council a quorum of the Council and the required charter officers are present to conduct the meeting.
Thank you, Ms. Woodson. We'll go to Section E, and that is our city manager's comments and update on city operations. Mr. Zanoni.
Okay, great. Good morning, Mayor and members of the council. We do have two items on the city manager's report, and Nick is going to deliver the first one this morning, which is an update on our requested temporary suspension to the environmental releases that we do out of our Weston Reservoirs pursuant to the 2001 agreed order. And so, as you know, we did put an application in to have a temporary reprieve and requested that we begin those releases only when the reservoirs combined get to 50%. uh... today they're forty one percent and so the tcq administrative director executive director uh... did approve this request however does need the commission's full approval and that meeting is tomorrow so nick is going to give an update he'll be traveling later today with ryan scrobacic our intergovernmental relations director to austin for the tcq meeting tomorrow And we thought it'd be important to let the community and the council especially know about where we are with this request. So, Nick, we'll turn it over to you.
Thank you, Peter. Nick Winkleman, Chief Operating Officer, Corpus Christi Water. As the city manager stated, I would like to give an update on our request for temporary suspension of special provisions of our agreed order. The current certificate of adjudication was formed in 1976 with the creation of Choke Canyon Reservoir. There was an agreed order establishing special procedures of specifically releases associated with our western reservoir systems in 1995. In 2001, the agreed order was amended to allow for further reduction of pass-through requirements of the total reservoir system. The parties of the agreed order are the City of Corpus Christi, the Nueces River Authority, and the City of Three Rivers, all of which have co-signed this request of the suspension of the special conditions. What is the agreed order says well when we are have a combined storage of 70% are greater the target per year is a 138,000 acre feet of water of environmental flows. The target is broken down into monthly totals and also is dependent upon the inflow received by the reservoir system. When the water system is less than 70% but greater than 40%, the amount of targeted releases is 97,000 acre feet. Additionally, the city receives credits for monthly targets of periods of low flow and other discharges into the bay system. The temporary requests and our paths forward, just go over some historical dates and what's going to be happening tomorrow and the rest of the week. On August 11th, the city of Corpus Christi, Nueces River Authority, and Three Rivers submitted an application to the Texas Commission on Environmental Quality to suspend the releases for 180 days or until a combined western reservoir capacity of 50%. On August 25th, the TCEQ executive director approved this request and in effect made the request effective at that date. However, the TCEQ board must review this decision and that's the board meeting tomorrow. We are first on the agenda. What the commission will do is either grant the request as is, deny it, modify it, or potentially they could send it to a hearing. So this state office of administrative hearings also called SOA. If it is sent to a SOA hearing, we believe that there could be a preliminary hearing as early as tomorrow after the TCQ board meeting, and then the hearing itself would start the following day. That would be Thursday. Again, we've seen quite a bit of support surrounding our request. Those include support from State Senators Chewy Hinojosa, Adam Hinojosa, Senator Zaffarini, and Representatives Todd Hunter, Denise Villalobos, and Ryan Guillen. Additional letters of support were furnished from the City of Beeville, Mathis, the San Patricio County Farm Bureau, the Nueces County Water Supply and Improvement District No. 3, River Acres Water Supply Corporation, and the San Patricio Municipal Water District. One thing that I can say is the team, including our legal counsel, put together a very strong petition to the TCQ, and we're thankful to the executive director for approving our petition and making it effective. We have worked and continue to work closely with TCQ. We will be in Austin this week to answer all their questions and further discuss the situation and the benefits that this suspension would have for our water supply. With that, Mayor and Council, I'll stand by for any questions.
Okay, thank you, Nick. Councilman Hernandez.
Yes, has Colsa Bend Basin Estuary still against this, of us not releasing water? or opposing this temporary halt on releasing water? That is correct. Do you expect them to testify at the board meeting?
I believe that would be the case. I don't know for sure. They haven't confirmed that or not, but I believe it would be the case.
Okay. When we brought this up in years past, it had been a recommendation from CCW specifically Stefan Ramos to not open this can of worms is it is it still his position or CCW's position on that or.
Sure councilman so this is a temporary request a temporary suspension so and again it would take it effect if approved for 180 days or until the western reservoirs recovered a 50%. We feel strongly that that is the right move for our water supply. Additionally, though, a full change of the agreed order would require the establishment of the NEAC, the Nueces Estuary Advisory Council. CCW is fully supportive of getting that council back together. and meeting to discuss about the next steps because I do know Coastal Bend Bays and Estuaries, they've approached us. They would like to see some of the conditions change a little bit. I think they're in favor of more of a consistent flow. So it's worth getting the group together and reevaluating the entire agreement.
Okay, so it's your position, CCW's position, that we do want to move forward and go to a more permanent solution as opposed to just a temporary one?
We want to work through with all the established parties on reevaluating the full agreement. What that looks like, I'm not sure, because we'll have to, you know, it's not just CCW that has a seat at the table, but it's all the other entities, and we're committed to working through that with everyone in the NEAC.
Okay, and I noticed you're not doing a water report today, and there was some question I did want to ask on that, but specifically the, I know that Sinton has refused to provide us their hydrology report, and we submitted an open records request on it, and did we, or can you give us the status of that?
Sure, the city did support an open records request to the city of Sinton, The response that has been received is that they have reached out to the state attorney general to see if they can indeed furnish that report.
Okay, so I want to be clear on this because did we provide them the hydrology report that was done by the Evangeline group?
The seller did.
So they were provided with Steve Young's report, the hydrology report.
They were provided with hydrogeology and information from Steve Young, and that would have been from the seller, the Evangeline Laguna Group.
But you're saying that they're refusing to provide their hydrologist report to us.
That's what we know is they've asked the Attorney General if they could send it to us because they wanted to seek a second opinion before submitting it just directly to the seller, Evangeline Laguna.
Okay, so did we, when that report was provided to Sinton, was there any redactions to that report? No. Not that I'm aware of. Okay, so we provided full information about the hydrologist report on the Evangeline property. To my knowledge, yes. But they refused to provide it to us. Yes. Okay, thank you.
Councilwoman Paxson.
Thank you. Thank you, Nick, for the update. So our request is for basically six months of... on those pass-throughs or until the combined levels reach 50%?
Correct, it's or, either or.
Okay, either or. And so we received that initial approval, and it has to go to the full board. When does that 180 days take effect? When we applied or when they give us that final approval?
It took effect immediately when the executive director approved the request. So it took effect on August 25th.
Okay, so... You said that CCW is in support of reactivating NEAC to evaluate the long-term solutions. I'm just curious, I think that's something that we would already be initiating right now because I'm hopeful, I appreciate TCQ's support in this temporary pause. We've needed it for a while, but I think we need to be proactive because we're still, I think, going to come to them with some kind of long-term change recommendation, and I don't want us to be the holdup. Six months is not a long time to look at that.
Yeah, it goes quick, Councilwoman. One thing that I can say is CCW is not in charge of the NEAC. It's not our job to facilitate or bring it back together. It'll be, and we'll make a request of TCEQ to do that, to reestablish the group.
Peter. Right, just to add to that, so we have to get going to get TCEQ the City of Three Rivers and the Nueces River Authority to, in partnership with us, send that written request in. In fact, when Nick's, they're going to be at TCEQ tomorrow, so they probably will give them a verbal tomorrow as well. But we have to officially request the more long-term review. And so we're in the process of doing that.
That's what I'm trying to assess or rather get some confirmation that we We're not pausing that because we do have to get that.
Correct.
I want to be very proactive is what I'm trying to say, you know, get that, get the approval from the other two partners and don't wait on it because six months is going to go fast.
No, we agree. So we'll have a resolution for the city council to, to, to give us guidance to do that. New Asus river authority will need something on their, uh, on their commission's agenda, as well as the city of three rivers, their city council probably will pass a resolution as well to guide us all three to submit something in writing. Because as Nick said, the TCEQ is the one that activates that oversight group.
Sure.
But we have to put in an official request. They know we're working on it, and Nick will be telling them tomorrow in person, but we need official writing to kick off that review.
So seeing them tomorrow, which we know we will, and we're grateful for them to support this endeavor, when do we anticipate bringing that resolution to council?
We'll have a better answer after tomorrow, so it could be next week, Tuesday, or the first meeting in October.
Okay, could you send that update to us after we receive it tomorrow?
Yes, we can.
Thank you.
So, Peter, we already passed a resolution on this.
Well, I think we passed one on the temporary application.
No, it was, I mean, because it was my item. It was a resolution to move forward with the temporary, and then there was a separate item, a resolution, to move forward with looking at the framework, because it is from 1995, and I believe it was amended in 2001, but to really look at this and start this process. So this should be, it is there. We'd have to look at the agenda of when that resolution was passed, but I know it was two items. One was for the agreement, the temporary, and the second item was for exactly this to move forward with the process which was going to be a long one but nonetheless it has to start so so yes i think we have been proactive and we appreciate that but let's look that up and make sure we we do move forward with that okay we'll double check that and then uh we'll activate those other two entities that are absolutely certificate holders with us thank you peter and nick thank you for the presentation thank you yes
Okay, good. And Nick and through my through, I'll keep the council informed as to tomorrow's actions. As Nick said, this is their first item on the TCQ committee tomorrow. Okay, good. We have one other item and Chief Wade's going to help me on this one, but we want to talk to the council and the community about what this city is doing for our 9-11 remembrance. 9-11 is this Friday. And each year there is an event that's held by the city and it's the city's fire department that holds the event. This year, the city's police department will be there, as well as the Port of Corpus Christi will join us in our efforts. This 9-11 is significant because it marks 25 years since the day of the attack on our nation. This year's remembrance ceremony is at Heritage Park on North Chaparral Street, and Chief Wade will be leading that on Friday. And just a quick fact here, according to the 9-11 Memorial and Museum, 100 million Americans, 100 million are too young to remember the day of 9-11. So it's important for those that were here on 9-11 that we continue to share with our generations of Americans how significant this day was and why it's important to remember the legacy. There'll be other ceremonies here in town. The Coast Guard will have their annual Whataburger field climb amongst the stairs there. The Refinery Terminal Fire Company is also hosting a memorial walk along the seawall. But at this time, Chief Wade's going to go into a little more detail about the event that we'll sponsor as a city.
Absolutely. Thank you, Peter. And thank you, Mayor, Council, Brandon Wade, Fire Chief. So as the city manager said, this is the 25th anniversary of the attacks of 9-11. And you're right, there's a whole generation that was not alive during that time that those events happened. So it is important for us to always remember this because a lot of things have changed by that day when those attacks occurred. So on September the 11th, 2,977 victims of that includes all three of the events that happened, the airliner crash, the Pentagon, and of course the World Trade Center. Especially to the fire service, 343 firefighters' lives were lost that day. That is the greatest loss of life of firefighters in the world that we know of. So that is a huge day that marks the fire service, and many things have changed in the fire service with that event on that day, as well as 71 law enforcement officers from NYPD, Port Authority, that responded that day as well, lost their lives responding to that event. Since that day, though, one of the more remarkable numbers is more lives have been lost now due to the effects of that day from cancers, the various diseases, from the recovery efforts, from the response efforts that is now surpassed the number of lives lost that day is now through the health effects from all of those responders and the recovery efforts that happened and we're still seeing that today and that was everything from firefighters police officers that was there during that time to even the urban search and rescue teams that came from across the country to help in the the recovery efforts many of those have unfortunately perished due to cancers and everything else with it So here locally, we have our 9-11 Remembrance Ceremony that we host as a city. While the fire department may take a lead role in it, we are assisted greatly by the Corpus Christi Police Department. and helping us make that event very special. If you've been there before, I think it brings great dignity to those lives that were lost or affected. And we will be having that at Heritage Park this year, same place we held it last year. It does provide some nice shade. It's typically hot this time of year, so being able to be there under the shade trees while that ceremony is going. So it will be at Heritage Park at 8.30 in the morning. There will be remarks by myself, Chief Markle, and more than likely Chief Giannamore from the Port of Corpus Christi as well, giving remarks. The Honor Guard is there. Again, the ceremony is very humbling to be part of, and we're blessed the city continues to sponsor and support that. That is open to the public, so the public can go and join in the ceremony as they have done in the past. We see everything just from citizens wanting to be there to retirees from various fire departments, police departments, military that do come and take part in the event. There's also the 9-11 Memorial Workout that is sponsored. The Coast Guard is the lead for that. They work with the Whataburger Field. They have that at 7.30 is when their opening starts to let people inside. And that event, though, is going to be specifically the first session at 8 o'clock is going to be for military or for first responders. And they will do the walk through the stadium. And then they will have a general public walk at 930, which then they can take part of. Also, the Refinery Terminal Fire Company, they also host a memorial walk. And they do that along the seawall there. And they start right in front of the Hilliard Center. I think mainly people park there at the Art Center parking there right by the water. They start their check-in at 7 a.m. in the morning. They do a short memorial at 746. And then at 803 is when they begin their walk down the sidewalk and back over there to it. That event is also open to the general public for them to be able to take part in as well. And with that, again, as we said, we are blessed to be able to serve our community. The police, the fire, it is a distinct honor and privilege. I think as we go back and we remember those ceremonies, I mean the events of that day, it was really a marker in time in which it showed the heroism, the bravery, the true courage of the police officers and the firefighters that responded to that day. I know personally from acquaintances, And people I know, it's remarkable to hear their stories and their tales of them responding to that event. And I think that shows the courage that firefighters and police officers had. Many of those firefighters and police officers, they knew they would not be returning. They knew they were going up to save people, and they did not believe they were going to survive and they went anyway. And that is what your firefighters here and your police officers here do every day when they're responding. So it highlighted that at that time. But I just want you to know that that same commitment is here every day with your police officers and your firefighters that serve the Corpus Christi. And we're blessed and we're privileged to do it. So, again, we invite the public to come out, take part in the event. You can bring your family. And we look forward to seeing everybody out there. And thank you for your all support. to public safety and letting us continue to do the job that we do. So with that, if you have any questions.
Thank you, Chief Wade. And thank you for sponsoring this wonderful event. And you said it very well. Our firefighters and officers, they don't know. You don't know what you're going to encounter. So we appreciate everything that we have in both departments. Councilman Scott.
So my brother lives in New York City. And he was there on 9-11. What he says is the terrorist mistake was we came together, right? We came together. And you saw it that day. He saw it when he was walking down to see if he could volunteer. And they said, you know. And then we saw it in the baseball game a couple of days later. So I just want to say thank you. Chief, thank you. Chief, thank you. Thank you to your men and women for their service. And I look forward to coming together and recognizing the prize. Thank you. Thank you.
Thank you. Chief White, thank you for the presentation.
Okay, that concludes the City Manager's report.
Thank you, Mr. Zanoni. So it is 12.02. We are going to go to public comment. So before we begin public comment, I want to remind everyone that the City Council has adopted rules of decorum to help ensure that our meetings remain orderly, respectful, and productive. Copies of the rules of decorum are available at the City Secretary's office across the hall and are also available on the City's website. I ask everyone to please conduct themselves accordingly. We are here to do the people's work, and we would like to proceed in that spirit. When you do come forward, please state your name and the city in which you reside before beginning your comments. In-person speakers will have up to three minutes. For callers and WebEx participants, Corpus Christi residents will have up to three minutes, and non-residents will have up to one minute. The timer located at the city secretary's desk will help keep everyone within the allotted time. If you have a petition or other materials you would like the council to receive, please provide them to the city secretary before you begin speaking. So this afternoon we have 21 total public commenters. We're going to start with Ms. Robin Sanders.
Let me give this to the secretary. Before I start my reason for being here, when you're talking to the water people, tell them that's the stupidest thing that could possibly happen is releasing our water into the bay. Take a teaspoon, put it in an Olympic pool. What difference does that make? We have struggled and we have suffered, and I'm ready to march on that one. My purpose for being here is concerning removing the chairman of the board of directors from the appraisal district. All through this FEMA fraud, particularly, Mayor, that dog and pony show that you went through, Not one time did I hear mentioned that the second party in that conflict was Devin Bokta. Nor was it associated that he is the chairman of the board of the appraisal district. Not one time. You cannot participate in something like that and keep that position. How did Devin Bokta get that job? You gave it to him. City council appointed him. He's there to represent the city of Corpus Christi. You put him in there and you can take him out. You've let the wolf in the hen house. Right before his nomination, Devin Bokta spread $20,000 over the city council. Now that's not particularly horrible for people to make contributions. But what does make it something to look at is that the contribution to a council member was made a day before the vote or a day after the vote. Now that's something that makes it look like a quid pro quo. There are no records, and I've done deep dive ANI research, cannot even find his application or a resume or references. All of a sudden, he just appeared to be put into that position. Now, what I've given to our secretary has a list of no-no's. that are conflicts of interest and things that a person in that position can do to be removed from that position. I am begging of you to please read that information and agree with me that you need to put into action the removal. I understand that it only takes three people to get this on the agenda. And I know I've got three honest people there, at least I'm counting on it. That's it.
Thank you, Ms. Sanders.
It's your duty.
Stephen Klepper. Then we'll hear from Robert Rocha, Marilena Garza, Adam Rios, and Susie Saldana.
Steve Klepper, District 2. I'm here to give you three suggestions on what to think about when you look at item number 31, the briefing on the internal auditor annual work plan. Step number one, keep in mind why we have an internal auditor and how it came to be created, which was relatively recent, 2010. Mr. Councilman Scott was on the council then. the citizens voted to establish for the very first time an independent, independent is the key word, Office of Internal Auditory. If I could get this guy, Cam, to zoom in on, yeah, I would appreciate that piece of paper that I have there.
Can I move it down?
This is a slide that I used January 25th of 2025, just 18 months ago. But it's the same issue that led to the creation of the internal auditor, the city auditor. The city wasn't transparent. The city, at least viewed as not being transparent, not held accountable. The citizens want to know, still want to know, what it is that infects their lives, like the stray dog complaints, how many potholes, how long they've been out there, and all of that. The whole idea of accountability, my little picture here of the castle... Like, well, we can't really see any. There's city council out there. Lack of an independent internal audit function makes your job more difficult, too. And it certainly shortchanges the public. The whole idea, provide a source of information. As Pudge on the Pudge radio always says, often says, We're late to the party. For those late to the party, the city of Corpus Christi was very late to the party. It's the only major city to not have had an internal auditing department. All the Dallas-Fort Worth Metroplex cities do and did then, Austin, Dallas. And I was an audit director in one of those cities up the road. And so here we are. We find us again where the auditor would be very useful in providing information to help with the budget. The budget is not built around levels of service and service levels. It's just about how much money is being spent. That could be a job of the auditor. Now, one of the things, and that would actually be, so keep in mind, and I wanted to make sure you keep in mind that the auditor is a legislative audit. It's an auditor for you, the council, just like the GAO, which is Government Accountability Office. It's not an accountant. Thank you so much.
Thank you, Mr. Klepper. Robert Rocha.
Good morning, Mayor, City Council, Robert Rocha, District 3. How fitting it is for the item that I'm going to bring up for discussion revolves around firefighters and retired firefighters and Councilman Scott, I appreciate your comments about the coming together process, and I certainly hope that that's going to be near into our future. What I would like to ask the city council, the mayor, and the city manager is to take a look at the increases that are being charged to our retired firefighters and their families. It's my understanding there's been an increase proposed, and all I ask is that the interested parties come together, take a look at it, If it's what it is what it is, then that's what it is. But I just ask on behalf of our retired firefighters that we take a look at that pension, the cost that it costs to have insurance for themselves and their families. And I appreciate the opportunity to come and say hello and welcome back to the City Council, Mayor.
Thank you. Thank you. Thank you, Mr. Rocha. Thank you. And we do, just to address that, we have an item that I'm placing on the agenda to have a briefing over that particular subject next week.
That's correct. We'll have an item on next week's City Council agenda.
What's that?
I'm sorry. We're going to have an item on next week's City Council agenda on this issue. Yes, thank you. We did send to Council, too, a memo on Friday, September 2nd, And so we'll make sure you have a copy of that, Mayor, that lays out the cost for retirees. And just to point out here, the fire retiree, single person only, no dependents, is $395 per month, where the police is $667 per month, and the civilian is $988 per month. So while the cost may have gone up, for all accounts, the fire retiree still pays almost half and even more than half of what the others do. But we'll have a full report for the council for next week. I talked to Councilman Roy as well this morning, so we'll have some options for the council to consider next week.
Thank you, Peter. Councilwoman Paxson? Thank you.
Peter, we talked about this like three weeks ago, and this was... Right. You went back and forth with the association, with the fire department, and... Basically, we discovered that that was reality. There were some retired firefighters who were experiencing nearly a 90% increase with this.
That's correct, Councilwoman. So for the fire retiree, the insurance is governed by their collective bargaining agreement. And so Michael Rodriguez, our deputy city manager, worked with the fire union president, other leadership, and we're making the recommendation to not change or open the contract. And as I pointed out, when you look at more details, it puts things in context. $395 a month versus for the civilian, $988, and the police... Retired person, 767. But the item for next week is to talk to council. We know that several firefighters are talking to the council, which they should be doing. But we just want to lay out all the facts for the council so that you can hear from us the issue at hand.
I think what we need to do is make it very clear to the individuals who will be experiencing this and also to the public because it's a terrible concern. But as far as we go, there's not a lot that we can do to change it. And that's the position that we're in is they're coming to us, which is rightfully so, and saying this is a problem. It's going to impact me very negatively. And our hands are tied.
Right.
So that type of thing where they can communicate on their end and get that clearly explained on their end, because that's where I don't want there to be the gap.
Right, that's why we'll talk about it next week.
Thank you, Peter. Thank you, Peter.
Marilena Garza.
Marilena Garza, District 1. Good afternoon, Mayor and Council. We are 56 days away from the November election, so I want to ask a simple question.
Are you truly listening to your constituents?
Because what I'm hearing from residents at public input, budget sessions, public comment, candidate forums, and more is that they value their public libraries. They want them adequately supported, they want access protected, and they want this council to pay attention to what is happening inside these facilities. And what is going on inside them is in fiscal year 2021-2022, Corpus Christi Public Libraries recorded 330,094 in-person visits. In fiscal year 2025, that number had grown to 378,095. That's roughly a 15% increase compared to the pandemic-depressed 213,589 visits recorded. in 2020 to 2021, that's a 77% increase. And circulation tells an even stronger story. In fiscal year 2025, our sixth library system increased circulation to a record of 844,079 items, books, media, and digital materials. The library also provided more than 3,400 free programs with more than 91,000 attendees. These are not empty buildings. These are heavily used and treasured public assets. And yet, when the Library Advisory Board, the board this council appointed to advise you on the future of libraries, unanimously agreed to send a letter raising concerns about Hart Library, we received no response from council. No member of council came before the board to discuss concerns. That's troubling. Heart is not simply another municipal building. It is a 13,500 square foot public building with more than 47,000 pieces of material serving Flower Bluff and surrounding communities. So I'm asking this council to to do something very simple. Listen. Talk to your advisory board. Come to our meetings that are the first Tuesday of the month at La Ratama. Ask questions. Hear the concerns about heart and the future of the Corpus Christi's library system directly from the people you appointed to advise you. You appointed us. I had almost a unanimous vote with the exception of Gil to be on that board. And now I sit as the current chair of the board. So please start treating that responsibility and our libraries with the seriousness they deserve.
Thank you, Ms. Garza. Adam Rios.
Adam Rios, Corpus Christi. Good afternoon, mayor, council, and city staff. When I first became involved with Parks and Recreation, I came with a simple belief that recreation should reflect all of us. As you've heard me say before, not every kid carries a football or swings a bat. Some carry a skateboard, some ride a BMX bike. Some find their community in places that cities once overlooked. And I just wanted those young people to know that their passions matter, too. And I'm proud to say that together, we moved that idea forward. We were able to fight for skate parks. We helped bring new ones into the conversation and even into reality. We created greater awareness around alternative sports and communities that surround them. And although I did formally announce my departure from Parks and Recreation, I'm not finished. I still remain committed to the work of bringing a BMX track to District 3. I've accomplished a lot of what I wanted to accomplish with Parks and Recreation Advisory Committee. I'm just now choosing to carry that energy somewhere new. My next chapter, I'm hoping, will be as a member of the Arts and Cultural Commission. Because I believe a skateboard, a painting, a song, a mural, and a stage can all do something remarkably similar. They all exist in the same space to me. They give someone a place to belong. And I just want to help expand arts education and create opportunities for young people to discover that creativity belongs to them. I want to help develop new cultural events that can stand alongside the spirit and success of Day de los Muertos, Art Walk, and of course our newly formed Music Walk, because we have a very growing music and artistic community. I want to do events that are distinctly Corpus Christi, events that bring people downtown, fill our businesses, our independently and owned operated businesses, support local working artists and musicians, of course create tourism and generate real economic activity for our city, which these events do. Culture isn't simply decoration for a thriving city, I believe it's how a city truly thrives. Through my work on the board of directors at K-Space Contemporary, my relationships through our local music and arts communities, and my experience turning unconventional ideas into achievable projects, I believe I can bring something meaningful to this commission. So today, I respectfully ask for the support of council when this comes up to pursue this next opportunity to serve. I'm grateful for my time on the Parks and Rec Committee, for the people who believed in some pretty unconventional ideas, and for everyone who helped turn those into reality. I just want to take that same spirit and build something new. I want more art in the city. I want more music in the city. I want more books in the city. I want more culture in the city. I just want more people, more reasons for people to stay here, visit here, and most importantly, create here, because we all believe in Corpus Christi. So the work continues for me. I'm just sort of changing canvases, if you will. And I just ask when this subject comes up that I be considered for it. Thank you all very much.
Thank you, Mr. Rios. Susie Saldana. Yes, Councilman Cantu.
Peter, can we set up a meeting next week sometime about the library and have her involved in it?
Yeah, Ms. Garland.
I have some questions I want to ask, and I want to make sure we clear her concerns and everything.
Okay, a meeting with you, her, and us? Yeah. Okay, no problem. We'll set that up. Thank you.
Ms. Santana. First of all, Mayor, welcome back.
Thank you.
And next, I want to make sure that now that we're back together, that we start off on the right foot. And I know you all are willing to work for it so that we can come out and come out as one council. You know, I would love to shock the people and say that you guys are working 100% together. So it is my hope and my prayer that that happens and that it is done for the best of your constituents, the people you represent. That is my hope. And I hope that you guys really put your mind to it. It is essential. You've got from here till December. Some of you will not be back on those chairs. Some of you will. But you got from here to December to kind of straighten out your things and remember that you're going to be working with a whole different board, whether you like it or not. Some of you are gone. Some of you may be gone. So it's essential that you put your minds to it and put Corpus Christi first, the taxpayers first, and then you're going to do okay. Have a blessed day.
Thank you, Ms. Saldana. Amanda Gomez. And then we will have George Johnson, Jared Suarez, Amanda Guerra, and Carissa Tamez.
Good afternoon, Amanda Gomez, resident in District 5. There should be a video if we could.
Daniel's journey is one I'll never forget.
Lori came to us seeking food assistance from our pantry. Kelly was facing a series of life-altering challenges.
Ann arrived at our adult day center when she was 72 years old.
Paul started to believe in himself more and more.
He felt the warmth of people who never gave up on him.
I think that our highest calling is to help others. Helping someone in need restores and strengthens our own faith.
I felt as if the wisdom and traditions of our faith had come to life right in front of me.
I handed out more than supplies that day.
I saw through another's eyes, and I remembered what it means to love, to serve, and to be the neighbor somebody needs.
As a Catholic, I believe offering service to others in need with kindness and compassion is a fundamental teaching of my faith.
I kind of thought a little bit, is this great timing or not? In the midst of kind of a lot going on and high intense situations. And I thought, you know, this is a great time. One, because the event's happening next week. But two, because it's always good to throw a little bit of hope in every situation. To not lose hope ever, even when things get very difficult. So I have the pleasure to announce that Catholic Charities is going to be hosting the traveling museum that you saw in that video. It's that large tractor trailer retrofitted with a museum inside that's traveling across about 168 agencies throughout the United States. And the whole purpose of this traveling museum is to bring hope to every city that it comes across. It'll be here in our wonderful city of Corpus Christi on September the 14th and the 15th, which is next week. Public hours, as you see there and the invitations that you have, it will be at St. John Paul II High School from 3 to 5 o'clock. It takes about 30 minutes for you to go through the entire museum. And what is in there is several things. You have statewide statistics on poverty. You have stories of hope from staff volunteers who have encountered clients throughout Catholic Charities agencies. And there is also an in-house recording studio where anyone is welcome to record a story that they have of hope and service that they've encountered. I'm originally from the Rio Grande Valley. I moved here in 2021. And one thing that I've noticed about the city of Corpus Christi is a nonprofit organization community that comes out and serves the community. So this museum is more than Catholic charities. It's more than one agency. It's a community coming together.
Thank you, Ms. Gomez.
Thank you so much. Yes, ma'am.
George Johnson.
George Johnson, Corpus Christi. I live at 610 Brock. Came back from Austin this, well, I said Sunday, Monday. And across the street, there's a big sign in front yard of the neighbor across my street. And it's a roommates for recovery halfway house. Had just moved in over the weekend. And now I've come to find out that up to six individuals can live in this house right across the street from us. 27 years ago, I bought this house. I told my wife at that time, I'm not moving out until they pull me out in a box. And I meant it. I love Corpus Christi. I've lived here 54 years. That's how old I am. My parents lived in South Carolina. I was born and two months later, we moved here. So I got here as fast as I could. I never left here. I went to college here. I own a business here. I don't want to leave here. But guess what? This just made me want to leave. Portland and other places are looking really, really good right now. I cannot imagine if this occurred in Lamar Park, King's Crossing, Any other neighborhood. I don't even care if it happened on the west side. I can't imagine living across the street from a halfway house with a big sign that says roommates for recovery. And these are all men. I'm not going to dis men, but we're talking about all men. Up to six of them will live in this house. And please, I've already looked. I know that this is legal and within your code. But something must be done about this. I don't know what happened with the Airbnb crud that happened a couple weeks ago. I don't really care. But when a halfway house moves across the street from you or next door to you, oh, and by the way, single female lives across the street from them, right next door to her. Single female lives beside me, right next door to her. I would hate to be them. My wife is scared to death right now. She looked at me and goes, what are you going to do? I'm going to go talk to the council. And that's all I know to do at this point. I understand there was one in Meldo Park, but a big bunch of lawyers got involved. We don't have that in my neighborhood. There's a reason why I live in my neighborhood, because there is no homeowners association. I don't want a homeowners association telling me what color my door can be. But I'll tell you right now, I definitely don't want this across the street from me. I've looked into the guy. He's great. Veterans, all this other stuff. But I have no idea of any week who is going to be living in that house. Thank you.
Mr. Johnson, if you would, I noticed there's no you don't have a phone number or an email. If you'll right across the hallway is my office and you leave the ladies there with your contact info. And Peter, if you would maybe apprise the council of what not in this moment. in a memo right how this all works right and that way we can you know address this okay thank you councilwoman paxton peter do are we aware has development services at all talked to mr johnson i'm not aware of this the first i'm hearing of this situation so i can't answer that before he leaves property today can we have someone
go and address this and talk to him and get him some information so we can have the information as well so we can look at this deeply.
Yeah, I think Michael Dice is probably in the back, so Mr. Johnson.
I think Yvette's also back there.
What's that?
I think Yvette is also back there. Yeah. Okay, thank you.
We'll get somebody to come talk to Mr. Johnson before he leaves.
Thank you, Mr. Johnson.
Jared Suarez.
Jaris Watt is District 2. Welcome back, Mayor. The past Tuesday meetings of you suspended from being found guilty on three charges has been very peaceful around here. I hope you can continue that track record. Ms. Paxson, you did an excellent job with allowing the people to complete their thought when the timer went off. You allowed public feedback of clapping and ensured everyone had a chance to say what they wanted to say for every agenda item. I'm sure we'll hear the quorum to be said today. Last Tuesday meeting, the Corpus Christi Football Complex was brought up. I want to reiterate several questions that were asked. One, who ordered the pooling of funds? Two, why did the $5,000 check take so long to be accepted by the city? Three, who told CCPD to arrest Dr. K? And four, was it in retaliation that ICE was called to target the workers? Mayor, I would love to hear your thoughts on these questions since you have been accused of doing all of this. Last Tuesday night, a few caught in the moment when Mayor Pro Tem asked the city manager about the Inner Harbor vote if their no is all that is needed to shut down the Inner Harbor. The city manager responded with the vote wasn't on the agenda item, but on the motion. It seems knowing how the Fab Five would vote, a certain someone told a council member to quickly make a motion for this very thing to happen. Because the agenda was technically not voted on, they left the back door open to keep Inner Harbor alive. Just an observation, when council meetings last all day, we see y'all fatigued and want to go home. Who wouldn't be? My question to council and city manager is, why don't we have the big agenda items start after public comment? That would be better for your constituents to stay longer after public comment to address important big ideas, and then go home, doctor's appointment, or back to work. Think about your constituents, the ones that voted you in, unless you pulled a fast one with mail-in ballots. September 8th is the feast day of the Nativity of the Blessed Virgin Mary. Happy birthday, Blessed Mother. Don't forget to pray your daily rosary and go to Latin Mass at the corner of Carolina and Guadalajara. Thank you.
Yes, statement of fact, that is completely fabricated and our city manager will clarify that today in executive session. Amanda Guerra. Amanda Guerra, Carissa Thomas.
Hi my name is Carissa Tamez District 3. My name is Carissa Tamez. I'm with the transportation. I'm a transportation planning coordinator with the Corpus Christi Metropolitan Planning Organization which we call the Corpus Christi MPO. We'd like to invite you and the public to attend our upcoming community meetings and public outreach events that we will be having. These events are an opportunity for us to hear directly from the community about the transportation needs in our area. and share information about our 2050 Metropolitan Transportation Plan, which we call our MTP. Our first community meeting will be held tomorrow, September 9th, right across the street at the RTA building, and it's going to be on the second floor boardroom. Additional meetings are going to be hosted in different locations across Corpus Christi and the Portland areas, and I And I would like to also invite you to attend our public outreach events that we will be having, which the public has a chance to enter into a drawing for children's bicycles. Our next event will be at the home opening weekend for the Corpus Christi Ice Race, which will be held September 11th and 12th. And each game you'll have a chance to enter into a drawing for the bicycle. Each bicycle drawing at these public events attendees must stop by our MPO table, it's the bright blue table that we'll be having, to receive a free ticket, and they'll also have the opportunity to talk with us about transportation. We encourage you to visit the 2050 MTP webpage to learn about our ongoing community engagement efforts and how to enter our year-end drawing for 10 adult bicycles. Feel free to reach out to us if you have any questions, and we'd like to thank you for your time.
Thank you. Henry Williams.
Henry Williams, District 1. And first, to the council, city manager, city secretary, and to the mayor. And mayor, we'd like to welcome you back.
Thank you.
Also, I would like to commend Councilwoman Paxson on the admirable job that she did as Mayor Pro Tem in your absence. Secondly, I would like to thank you all for voting no to the Anahaba desalination project. And if you would, I would certainly appreciate it if the Anahaba desalination did not resurrect itself again. Also, during the Nueces River Authority's presentation at our past city council meeting, there was a, in their presentation, a man from Israel desalination engineers spoke. And as he was speaking, someone asked him had he considered the Inner Harbor desalination. And he said that he did not because he did not feel that it was an appropriate place for desalination. And I would like for you all to consider that in case the Anaheim desalination does resurrect itself. And I certainly would hope that it does not. May God bless you all. Thank you.
Thank you, Reverend. Robert Schultz. Robert Schultz. Kathy Wimmer. Kathy Wimmer. Armand Alex.
Good afternoon, Mayor and Council. My name is Armand Alex. I was born and raised here in Corpus Christi. Last Tuesday, the people of Corpus Christi won, specifically because for the second September in a row, This council rejected the Inner Harbor desalination plan. And I want us to understand really what that means. We saw ordinary people organize for years against this particular project. Hillcrest residents have fought against putting another industrial burden beside their historically black neighborhood. We saw environmental advocates fight for our bay. Working class people questioned why we should take on nearly a billion dollar project when so much of our water crisis has been driven by heavy industry and the constant demand for more industrial growth. And despite all the money, despite the paid politicians, the consultants, the political pressure, and years poured into Inner Harbor, people kept showing up. And we won. So Mayor Guajardo, welcome back. But I hope we're not coming back into the same old politics. Because Inner Harbor should not get a third life. The project is unpopular. Yet after council rejected it last year, we watched it crawl right back onto this dais because the institutional machinery for the project was left standing. That cannot happen again. And we really do need to pull the permits. If there are specific legal procedures required to surrender, to terminate, or to relinquish them, please begin them. The city manager should bring those actions before city council, tell the public what must be done, and really finish the job. Keeping these permits alive sends a message to voters that somebody, somewhere, is still waiting for another political opportunity to resurrect the Inner Harbor desalination plant. I grew up here, I've watched Corpus Christi sacrifice land and neighborhoods, our clean air, public dollars, and enormous amounts of water in the name of industrial growth. And somehow working people are always told that the next sacrifice that they make will finally bring prosperity to them. Where is it at? Is it in our libraries? No. Is it in our streets? No. Is it in our parks? No. Is it in our public services? No. Start with the largest industrial users, strengthen curtailment, expand reuse and conservation, fix losses in our water system, and protect resident affordability. Our economy should be organized around human needs. Human beings should not be organized around the endless unchecked demands of industry. Please don't make the people bury it a third time. Pull the permits. Please do whatever it takes to prohibit inner harbor desalination. Thank you.
Thank you, Mr. Alex. Rudy Riojas? Okay, okay. And we're going to go to WebEx. Stephanie?
The first person we have signed up for online comment is Sean Merritt. Mr. Merritt, are you there?
I'm here. Hello, hello, hello. Can you hear me?
Yes, sir. Go ahead.
Sean Metz, live from D5, baby. And look who's back. Elton John wrote a song about it, but if I said the title, suspended mayor there would put out an arrest warrant for me. I'll continue referring to her as the suspended mayor because I do not recognize that 30-day suspension as having been properly completed. 30 consecutive days means 30 consecutive days you don't get released for good behavior for partial compliance. Before we get to that, though, let's remember what C3 was doing last week. We took you inside a multi-sport complex. We showed you the well-maintained fields when you pull in. Then we showed you the unfinished main field disappearing into the weeds. The empty grandstand framework, the entrance, CCFC identified as the location of the icing counter. The fire lane markings, they say, had to be painted before youth soccer could resume. And approximately $4 million of seats, covers, and equipment, they say, remain sitting uninstalled. We asked simple questions. Who called ICE? Who interfered with the Type B funding? Who pursued an arrest warrant for Dr. K? Why was the permit pulled? And why does approximately 80% complete private multi-sport complex appear to have encountered every bureaucratic landmine Corpus Christi could scatter in its path? The people directly involved kept pointing us towards one name, suspended mayor, which brings us to today's alleged return from suspension. Tassel found the suspended mayor responsible on three counts. Formerly reprimanded her, suspended her for 30 days. On August 8th, the day the suspension began, the mayor began posting using the Facebook account linked to her mayor page. On the 14th, she must have had some great pancakes at the hi-ho, because there she was posting about that too. Then her personal first page displayed Mayor Cydia Corpus Christi, linked directly to the official mayor webpage. This is why, as far as I'm concerned, she's still suspended mayor. A 30-day suspension isn't complicated. For 30 days, you separate yourself from office. No access, no government-linked accounts, no using the office while simultaneously serving punishment for misconduct. But this fits increasingly a familiar pattern. Matthew Rankin criticized his government from this podium. A complaint resulted in an arrest warrant. Dr. K had a drought exemption, an arrest warrant. Rules seem to become remarkably rigid when they're being applied to citizens. Then we reach the suspended mayor, and suddenly 30 days requires advanced theological interpretation. So I'm not welcoming the suspended mayor back today. I am going to say 30 consecutive days means 30 consecutive days. And until they are served, you are still the suspended mayor. And we will show you in November, we don't want you to be mayor anymore. Thank you very much for my time.
Okay. Next is Terry Samuels.
I can't say that I've ever had to follow a clown before. Mayor, welcome back to the seat you belong in. Evidently, defunct math class. To the rest of the City Council, well, some of you I'm greatly disappointed at. When he talked about clowns, you know what's funny? When you Google the Corpus Christi City Council, you come up with either clowns or puppets since he brought up clown. So I just wanted to say that. Look, I'm a fisherman, worked in every aspect of the fishing industry there is here. Plus I have a degree in marine biology and worked with Tony Amos. There's 18,000 desalination plants in the world. There's no eco disasters anywhere and nobody has proven one yet. Now, talk about pictures. He's talking about pictures. There's an interesting picture of a couple council members having lunch with Ajit David and Doug Allison just days after the mayor is suspended, but the mayor's not supposed to use her Facebook page. I find that quite interesting. I mean, he made it easy to lead into these things. But look, God can't keep saving us every time that we get down to 7.3%. We have climate change. I don't know if the Fab Fives notice that yet, but we do. And when the governor has to twice call out our city council, not the mayor, but the city council, Let's understand that there's a difference. And it also had to call one council member and ask her to start acting like a leader. And she got on Instagram and said, wrong girl, and thought we were friends. And she was not going to be strong-armed into doing things. It's not strong-arming. It's making sure that we're secure and my grandchildren are secure in the future. You guys are not looking at the future. You're looking at the now. You've done nothing for 20 months, but spend our money. And we've barely got a drop in the bucket. And you've spent close to a million dollars. And speaking of which, all the things like the library and such and the nepotism with the Parks and Recreation or the animal control and the gentleman that was in here, that nobody knew that he had a halfway house across a street from his house. I think it's time that we ask for the city manager's resignation since the budget is coming up. I believe that that would really alleviate a lot of problems and maybe find a city manager that's...
Thank you, Mr. Samuels.
Educated and decel.
Thank you, Mr. Samuels. Next is Melody Cooper. Ms. Cooper? Okay, how about Nishi G?
Hi, this is Nishi, District 2.
Please play my presentation, thank you.
I'm at 4710 Hackle. I come before you today because I'm really appalled that our city is being sued. Our illustrious mayor is named 31 times in this lawsuit. Also, one of the things that really bothered me in looking at this lawsuit is that it says Mayor Palegwa-Harder privately solicited a fellow councilman's vote during the public meeting in violation of Texas government code section 551.021 and 551.143. It's a shame that we the citizens have to go through this extreme in order to get things done. So I am very appalled at this behavior and especially the people who I've named. So have a great day. You too, Ms. Saldana.
Disgusting. Jim Klein.
Play the video! Play the video!
Two things. One, it was altered. And two, that it would be hard to argue that it was not intentional. Correct? That's what he said, yes. And you're agreeing with both of those things?
Yes. Yes. That's what he said.
This is exhibit number 59. This is, you know who Daniel Ray, he was the attorney hired by the city to do some independent work. Yes. Yes.
After review of the presentations, deposition testimony, investigative materials, and applicable Texas and federal penal statutes, the PowerPoint slide at issue appears to have been intentionally altered to cover the dates that appear on the government website. Do you agree with him?
I agree with his report, yes.
Okay, including the statement I just played. You agree with the statement made that I just played into the record?
I agree with what he said. I mean, I'm not, I'm sure, what are you asking me precisely? If I agree with him, or do I agree with what he's saying?
I'll tell you ahead of time, I'm going to play it again for you, and I'm going to ask you if you agree with him.
You don't need to play it again. We just saw it.
Okay, do you agree with what he said?
Yes, I agree with his statement.
Okay. Okay. And so do you think it is appropriate to give $2 million to somebody who intentionally alters a federal document?
Okay.
Does that conclude your comment?
Yes, thank you.
Okay, thank you, ma'am. I understand Ms. Cooper is back online, Melody Cooper? Ms. Cooper? Can you see me? We can hear you and see you. Yes, ma'am.
Okay. Melody Cooper, District 5. Welcome back, Mayor O'Hardo. I've missed you sitting in that chair. I want to express my admiration for your fortitude under fire. Your courage and bravery are an inspiration to us. While you were gone, bad things, in my opinion, occurred. Peter Harbor was shot down, at least for now. The 4B board was gutted for, in my opinion, wholly political reasons. I'm sure many other things happened of which I am not aware. One other thing I would like to mention is that the budget of the sister city committee, which you always so strongly supported, was totally eliminated, which may in due time mark the end of this 50-year institution of our city. On behalf of myself and the current chair, Valerie Horvathalik, It is, if it is not too late to revisit this issue today during the budget discussions, we would greatly appreciate it. It may have to wait for a new city council if the committee still exists by then. The committee of which I was chair for many years did great things for hundreds of exchange students and completed numerous projects for the benefit of us and our sister cities. I would like to take a moment to mark the passing of Muriel Casanova of Agen, France. She was the vice chair of the Agen sister city committee who lost her courageous battle with cancer last week. She worked tirelessly on behalf of the committee and to welcome and care for the students that we sent to Agen, France over the years. She came to Corpus Christi at least twice and loved our city very much. She was beautiful. intelligent, and courageous, much as you are, Mayor, and will be very much missed. Again, welcome back, Mayor O'Hardo. We missed you. Thank you very much.
Thank you, Ms. Cooper. Isabel Araiza? Okay, Ms. Araiza. I hear there's one additional commenter. Is it Stan McDaniels? Yes.
Mayor, council, my name is Stan McDaniels. I'm sponsored by MasterButler.com. And I'm from Pensacola, Florida. So we've got quite a bit in common here. You know, we send all our guys from the Marines and Navy that are training to be pilots in Pensacola, we send them here if they get jets, right? And so I've gotten to speak with a lot of those gentlemen living and being raised in Pensacola, Florida. I've been on the road traveling the country up to Mount Rushmore and through the Badlands and going down to see the Starship launch. My oldest son was born in Houston while I was chasing my career back in 2013, so I'm very well established. aware of how great Texas is. But this is my first visit to Corpus Christi. I've driven through a couple times, but I just wanted to come and speak about the duty of the American citizens so that you guys kind of have an understanding, especially since y'all will be you know, celebrating the Constitution next week. I think it's super important. You see, I stood up for the Constitution in Florida, and on September 10, 2025, it was ruled in McDaniels v. State of Florida that the open carry ban there in Florida was unconstitutional. So that leaves only a handful of states left with an open carry ban. I stood for the Constitution, and I was persecuted further through the courts and through the family courts. And we have a certain situation going on in Florida with DCF and a grand jury report on how they're handling the children that are most vulnerable in Florida communities. And it was very scathing report towards DCF and the failures of any oversight. And it's human child trafficking that's what's going on in Florida through DCF. And so I don't know what's going on here in Texas, but I seem to imagine that it's pretty much the same in every state in this great country. And citizens are starting to wake up. They're starting to have some bravery to come up here and speak up and speak out about the Constitution and how it's being violated in every state in this union. So I've seen some of your shenanigans here from this city council online. And I think that it's most important for you to adhere to that Constitution when you're making all the decisions here for this city of Corpus Christi. Because the citizens that are standing up are growing. And there is momentum building. And it's time for you to stand up. Because the Constitution was not written to protect you. It was written to protect me from you. And so I would just encourage all men to start standing up in their communities. Stop being distracted by what's national and focus on your local community. My name is Stan McDaniels, sponsored by MasterButler.com.
Thank you, Mr. McDaniels.
Okay, Mayor, that concludes the public comment period. Thank you, Rebecca.
I tried to sign in online. I was here last week, and I waited three and a half hours to speak. So I try to do it online, and I'm not good with computers, obviously. So I was wondering if you could give me a few minutes of the concern I have. I'm disabled, and I'd like to share some of the... Go ahead, sir. All right. I'd like to share this with the mayor, and maybe he can pass this around. So I can show you that I am disabled. I'm an ex-high-voltage power worker out of Seattle, Washington.
Thank you.
Go ahead, sir.
Yes. I have concerns about the asphalt that you guys are doing out here. I'm showing some pictures around Snead Park, and it's around a cushion and a metal cough. It's all in that area. And anyways, I'm disabled, and when I come to these crosswalks, it's heartbreaking.
I mean, look at this.
If you can see it, there's all kinds of gravel. See all that gravel? Look at that. And then it cuts over, and it's been there for two years. Nobody's repaired it. And what they're doing is that a lot of the areas, you can see the one highlighted on the right, they're putting in these wheelchair ramps after they've paved. It's heartbreaking. And on this picture here, the homeowner right across from the park installed that pipe and that asphalt so they wouldn't have to wade in the water. Actually, what they've done has made it worse over there in flooding. And these things need to change. You're supposed to put, and that broken sidewalk is Snead Park. It's a city park. They put new asphalt, but no drains, no curb, no sidewalk. And kids walk to school on that. Citizens walk their dogs on that. Would the city be liable if somebody falls on that? It's disheartening. You know, it really is. Because I was born here on the Navy base. And I spent a lot of years in Seattle. I've been in the industry of high voltage and underground utilities for over 20 years. I'm 66 years old. I know what I'm talking about. Water is gonna get into those cracks and it's gonna lift up that stuff. And I have a friend that I would take her out walking. There's a HUD apartment complex right down the street, seniors that like to go out there and walk. How do you walk on that stuff? It's very challenging, even for me. But anyways, that's all I want to show, and I think maybe you guys can somehow get some correction.
Yes. Yes, sir. I'm sorry, what was your name?
Pete Ibarra. Mr. Ibarra? Yes. And I'm in Ms. Paxton's area district. Yes, sir. But this, like I said, this is in another area where my friend lives.
Right.
But I live on Paloma, and what they're doing there as well, they're coming over there week after week, and instead of digging out the ground and putting enough asphalt, they're barely putting any asphalt. So now, in front of my house, there's a whole bunch of that gravel, the asphalt, in the curb. So now I get to go there and broom it up, and when I take the trash cans out, I'm rolling on rocks. That's not fair.
Mr. Zanoni, yes, can we have staff meet Mr. Ibarra, because this is an operational issue. Mr. Zanoni can absolutely address that.
Yeah, somebody will come get you. What was your last name again? I couldn't hear it, Pete. Your last name? Ibarra. Okay.
Ibarra.
Yeah. Yes, sir. Okay, great. Thank you.
So staff will come over, Mr. Ibarra, and speak with you and address, you know, go address these issues. Okay. Yes, thank you, sir. Thanks.
The paperwork that I gave you guys, I hope you'll throw it away. It's just, I wanted to show that. Absolutely. It was labeled out of Washington.
Absolutely. Thank you, sir. Thank you. Councilwoman Paxson.
Thank you. And Mr. Ibarra, just as a statement of fact, we are investing over a million dollars in the beginning of a sidewalk project, and we have had lengthy discussion about bringing sidewalks up to speed at our parks. So thank you for bringing this facility. You're not supposed to put in sidewalks after you put in pavement. You're supposed to do all that before you put in pavement. We appreciate it, sir. This is a big priority to us in the next budget. We appreciate that. Thank you.
Yes, the area he's talking about is actually in District 5. It's around Sneed. There's an area there that is an older neighborhood, but this was kind of a result of us doing the pavement-only aspect. They have a lot of gutters that are turned up the wrong way, and then you see where it doesn't drain properly. We actually have to send a vac truck out to those neighborhoods, that particular neighborhood that he's referring to, in order to suck up water because the way the street was designed, the drainage is on each end of the neighborhood. So the whole section, if it drops down, doesn't drain. So we don't have, as a result of just pavement only, that was never corrected. So I just wanted to kind of identify that this is one of those areas where the drainage, the way it was designed many years ago, wasn't great to begin with. and it's not gonna work.
Well, they'll inspect it and see and address the issue.
No, they're aware of it. Ernie's well aware of it.
Yeah, thank you.
Okay, thank you.
Okay, Rebecca, we're gonna move on to board and committee appointments.
Yes, ma'am. There's one board on the agenda today. It's for the Arts and Cultural Commission, and these are mayoral appointments subject to council confirmation.
Yes, and I would like to recommend the reappointments of Ernest De La Garza. He is with the Business Development Group corporate representative, and Melina Gosa. She is in the marketing slot, and I'll entertain a motion to approve the recommendation.
So moved.
Okay, all in favor say aye. Aye. Any opposed say no. No. The motion carries. I would also like to recommend the new appointment of Adam Rios in the public art and public space area. I'll entertain a motion to approve the recommendation.
I move for approval. Second.
Okay, all in favor say aye.
Any opposed say no. The motion carries. All right, ma'am. Thank you so much. That's the only board. Thank you, Ms. Watson. So next we have our budget items, section I. Budget-related items, items 4 through 13.
Here, Mayor, if at all possible, I'd like to move to approve items.
I'd like to move to approve items 4 through 13 with the exception of 7. Is that a possibility?
I don't see why not.
It is councilman. Yeah, this is second reading. So last week we did the first reading an adoption, right?
These are all second.
Yeah second reading or would have to consider seven individually the tax rate for record vote, but Okay, so we have a motion so I'd like to move to approve items four through 13 with the exception of seven Okay, we have a motion in a second
to approve four through 13, with the exception of number seven. Is there any public comment on items four through 13? Okay, if there is no public comment, we will, I'm gonna finish, I heard him. I'm gonna close public comment. Councilwoman Paxson. Thank you.
Mr. Zanoni, before voting on item four, I wanted to circle back to last week's discussion, jumping down to item seven because they are connected even though this proposed passage excludes seven before we take a vote on four. Do we have an update?
An update?
Originally, there was a motion made to go to the no new revenue, and I think the discussion centered around bringing back a recommendation. If we were to do that, this is what we'd need cut before we vote on number four.
Right, not only do we have that update, but the staff went back and looked at what impact does this have on the next year, the second year budget, which would be 2028, and it's a greater impact than even the nearly one million now, but... Amy can go through. If we were to do the no new revenue rate, it would be about $900,000. We'd have to...
It's about $820,000.
Okay. And then the recommended reductions to achieve that would be essentially all the spending amendments that are on the table here. So that would be the mowing of vacant weedy lots, the $200,000 for homelessness, and there was one other thing.
There's a... One of the other options that we had brought forward was to reduce one mowing crew in the Parks and Recreation Department. So we would have to do that as well in order to balance the general fund.
Do we have a presentation on that showing totals? Do we have anything prepared?
No, ma'am, we do not. Amy Rodriguez, Director of Management and Budget. I did want to say quickly, though, this isn't just a general fund impact. So when we reduce the revenue in the general fund, I believe Councilman Hernandez mentioned this last week, It impacts the amount of revenue that we send to the streets funds as well. And so with this change, we would have a deficit in the street fund of about $20,000, street maintenance fund. So we would have to also reduce pothole repairs in that fund. And then there will be a reduction in revenue to the TERS funds as well.
Okay, so the recommendation in order to facilitate going to the no new revenue tax rate would be I think it was 700 million, whatever that offset was that we were putting into these new items. And there was no other recommendations on other ways that we could save that 820?
No, we'd recommend the things that are being added first, like the grass weed abatement of 450,000, the 200,000 of homelessness service. And then as Amy said, we'd have to eliminate one of the mowing crews and parks, which would have an impact on park maintenance or mowing, at least the mowing cycle.
I guess from the last discussion, I recognize that you said that would be the first recommendation, but it seems like there was potentially going to be a secondary. These are other options that we could consider. So I guess that's kind of what I was looking at because we know abatement, we cannot lose that. So that's what I was kind of looking for.
Well, the council didn't consider this, but there are those fees or revenues that we talked about. You could do the vacant building registration fee, the small fee to the weekly curbside solid waste program, and then a community enrichment, I think, fee is what we called it. Those would generate about that million dollars each per year.
They generate a million each, you said?
It's about roughly around a million each, less than a million, but right around that 900 to a million. So that was our first recommendation to be able to do the grass and weed abatement and the homelessness program.
I guess I'm a little disappointed that we don't have something kind of showing those dollars since there was actually a motion made and there was discussion about it. So... I appreciate that, thank you.
Okay, we have a motion and a second to put through, let's see, items four through 13, with the exception of number seven. Please submit your votes. Councilman Hernandez. Hold on a second. Yes.
Peter, I mean, I was, you know, in terms of how you look at this, you look at particular programs, which you don't look at it as an overall, concern. What is the percentage of the budget that $820,000 represents?
We can calculate it real quick. How much? 4%? If you just look at the general fund budget.
So what are we looking at the general fund? $360,000? I'm sorry, I didn't look at it. It's about $350,000, yeah.
It's less than 1%.
Less than 1%?
Yes, sir, less than half of 1%.
Less than half of 1%. So if you did a small less than half of 1% across all departments, would that be an issue?
It would, yeah. We don't recommend that type of a budgeting approach, Councilman. And it has a bigger impact in the next year, in 2028.
Next year we have to look at our... Can you articulate that a little bit better?
Yeah, so with a reduction in the tax rate, next year we're going to have to look at the debt service and the operating and maintenance and might have to make an adjustment to maintain both operations. Plus, next year's with increased base value and with new improvements with a lower tax rate, it'll have a more significant... REVENUE LOSS IN ONE MILLION, JUST IF YOU LOOK AT THAT ALONE. AS WE MENTIONED LAST WEEK, THE CITY COUNCIL EITHER BY STATE LAW, FOLLOWING STATE LAW, OR BY CHOICE, HAVE LOWERED THE CITY'S TAX RATE BY FOUR AND A HALF CENTS IN THE PAST COUPLE OF YEARS. WE'VE ALSO PROVIDED EXTREME PROPERTY TAX RELIEF in the form of doubling the homestead exemption from 10% to 20%. So when you see pictures like the gentleman just showed us of sidewalks, the way they look and issues with our roads, we're getting to a point where we've cut back a lot of things to where even the essential services are gonna begin to see an impact, and that includes streets and police and fire and parks. So what may seem like a little, it has an impact overall, especially as the next year and the year after, it has a compounding impact. The savings to the homeowner was how much a year? Five dollars.
It would save the average homeowner roughly five dollars.
Five dollars, mm-hmm, so.
A year.
Okay, I did have an issue with the way this was done. Did we make any changes to the cost of living allowance versus merit pay? We did not, Councilman. We kept the recommendation as we had it. Okay, well, I didn't vote for all the items from 4 to 13. I did not vote for 4. I also did not vote for, I want to say it's... Item number 12. So, Rebecca, on this thing, since we're voting them all at once, can I select certain ones that I'm not voting for?
So you want to, for the record, four through 13, and then noting that Council Member O'Donnell, this is voting no on four and 12. Is that what you'd like to do?
I believe so. I think there was one other one that I voted against. I think I also voted against six as well.
Okay, so just so for six and twelve Yes, okay, we can we can note that for the record if you like, okay, okay Otherwise, we're voting on we have a motion in a second for items 4 through 13 on foreign exempt with the exception of item 7 Please submit your vote Okay, and for the record and council member Vaughn is voting no on four and eight. I
Councilmember Vaughn is what, excluding? She's voting no on four and eight. Four and eight. Well, if it's two and you're notating it.
You know what, this is getting a little confusing now, so now that we have somebody else doing it, so why don't we just, we'll pull those items where they're voting no. Especially on the budget, that needs to be very clear who's voting no.
So let's go, do we need to rescind the, because we have a motion to second.
Okay, yeah, if you would, and then we'll just pull all the items that the council members are voting no on. Okay, so I'm going to start with item number four.
I move for approval.
Okay, do we have a second?
Second.
We have a second. Please submit your vote. Okay, the motion carries. Okay, the next item, item number five, ordinance establishing compensation for the presiding judge and municipal court judges of the City of Corpus Christi beginning in fiscal year 2027. Are we doing this together or individually? Individually. She's doing them individually. Yes. Yeah. All right, so item number five, do we have a motion?
I move for approval. Second.
Okay, we have a motion and a second. Please submit your vote. Okay, next item, number six, ordinance adopting the Corpus Christi fiscal year 2026-2027 capital budget beginning October 1 of 2026. Do we have a motion?
I move for approval.
Do we have a second? Second. Please submit your vote. The motion carries. Item number seven is an ordinance setting a property tax rate of 0.599774 per $100 valuation. which is effectively a 0.50% increase over the no new revenue tax rate and approving the tax roll as calculated.
Mayor, I move that the property tax rate be increased by the adoption of a tax rate of 0.599774 for $100 valuation, which is effectively a 0.5% increase in the tax rate.
Okay, we have a motion and a second. Please submit your vote.
Okay.
Okay, so that fails. Okay, the motion fails. Yes, Peter.
If the proposed tax rate doesn't pass, the budget will need to be revisited to be amended to reflect the tax rate that the council wishes to adopt.
Can you repeat that, please?
I said if the proposed tax rate of the .599774 doesn't pass, then the budget is not balanced, and we'll have to revisit the approved budget to amend accordingly.
So what does that process look like?
We need to go reconsider item number four, so we open it up again and then discuss the cuts required to go to the no new revenue tax rate.
Councilman Hernandez.
Just for clarification, this has to be a supermajority, six vote?
Of course, 60%.
Sixty percent.
That's six. Six votes are needed to pass them. This one, yeah. Thank you.
Councilwoman Paxton.
I think there was some good suggestions as far as less than 1% from each, or up to 1%, a reduction from the budget like Councilman Hernandez recommended and merit versus... COLA, those types of things. Again, I wish that those could have been presented today to avoid this type of a situation because there was so much discussion on it. But those were really good places to start.
Councilman Bonetta.
Well, it's disappointing, especially after months of workshops. You know, as I say often, I think all Staff and developers and individuals that invest in Corpus Christi is a predictable regulatory environment. And to come at this time to request, and I tell you what, in Austin, this is called a bumper sticker initiative in order to be able to basically state that we're reducing the tax rate to save every homeowner $5 annually. And I think the consequences that we're not, you know, this year because of the tax relief that this council, the prior council did, that put us in a position where we're not able to have a bond initiative of which we can't reinvest in our community. And this, again, would jeopardize that ability to be able to reinvest in our community and simply because we don't have the revenue to do so. I just think it's very, in my opinion, it's not responsible to move forward. It's not good fiscal responsibility because the impact is not only on this year, it's in years to come. And so we're gonna remove the flexibility of the next council to be able to utilize these hard-earned dollars that individuals pay to us to be able to reinvest in their community and their infrastructure. So I just want to state that for the record. I don't know anywhere else that basically that there is an opportunity to cut. We have a staff of professionals of which we pay millions of dollars millions of dollars to make recommendations. And I don't understand where it is that we want to, what it is we're trying to accomplish. What's our mission? What's our vision? What are the values that we have? And if the mission is just to be able to say, I voted against a tax increase, I voted to save you $5 a year, then I don't know how that helps. You know, you've been a champion for sidewalks, and that money, those items were put into the budget, you know? And I think those are those things. I mean, we had public comment regarding libraries. So to be able to move that across the board and the consequences associated with it, I just, I don't understand the logic in what we're trying to do.
Councilwoman Campos.
Thank you. Like I said this before, this is a really, it's a big responsibility that we have here. And as much as I don't like to see some of the cuts and this kind of at the end theatrics, it's not needed. I mean, those things should have been discussed beforehand. I also am very disappointed with the mayor with her latest votes of just the abstentions. She's been here long enough to know how important this is. So again, I hope that we're able to redo this vote and everybody come to the table and do what we were elected to do, which is pass this budget.
Yes, and for the record, I have not been a part of one conversation of this budget, and this is not the same budget as years before so no it would be wrong of me to be voting on something that i have not had one conversation with my colleagues or the city manager on so councilwoman uh bond okay mr senoni you know last week we kind of had a plan on what we were going to do so to me it's just kind of being up leveled i'd like to see us finish the agenda and for us to go back to number four
And then the tax increase and talk about it. And let's figure something out because I'm disappointed that we don't have anything, any other cuts that we can present to us other than cutting the mowing. I don't like that. So I am not pleased with what's gone here either because I voted for both of those last week. But now I'm confused as what. So I want to hear for in detail what we're cutting, what we're not going to cut. And then. I want to go back and vote on the increase if it's, because I realize we've got to pass a budget, but I also want to make sure what cuts we're doing, that they're fair and that we're not going to have to do it and we're not going to be a knife in the back saying you're going to do this or we're going to get mowing cut because that's not what we want or the abatements, any of those things, and you know that. And I know it's difficult. That's just my suggestion, Mayor, that maybe we can finish through the agenda and then come back and just hash it out. Yes.
I mean, we, uh, we, we, you know, we gave a, uh, including consolidating yet another department, the communications and the governmental relations eliminating yet another executive. Um, so when last week the vote was, I think seven, one on the tax rate. So w w I, we must've missed it, but it didn't seven yeses for the tax rates. I, I didn't, I wasn't given any clear direction that we wanted yet another whole list of, of a million dollars in reductions. That's why we don't have them today.
uh... nor do i think we can get him in a few hours percent your forward number four so we can see exactly what's going on here so that we can get in some kind of agreement some of them up for the budget and not the increase i mean i think they go hand in hand we could do that that's just a suggestion yeah that's that's a good one where we could review
It's taken us six weeks to get to this point with lots of input from the council, the community. So using the current tax rate, I thought we had a pretty good plan, which is we can still have reductions and even more, but we did those to be able to come up with the grass and mowing and the homelessness programs, and we even funded the demolition through another fund. So we have well over a million dollars for vacant lot demolition buildings and mowing.
So we talked about are still in there. I'm just saying, let's go back and do a review. And then the mayor hasn't been here and she can hear that as well.
Yeah, that's a good idea. I mean, we have, it's close to 750,000 and more reductions that we came up with to including consolidating departments, eliminating the communications director, eliminating positions and communications, So it's up to the council, but we can review. We do have the presentation for item number four. All right.
Well, let's, yeah, we'll do that. Let's get the other comments through here. Councilman Cantu?
Quick question, Peter. Can we table this until next week so the mayor can be up to speed this week on this?
So one of the reasons we're here the day after the Labor Day holiday is that the tax assessor-collector, tax assessor collector wants to send out the tax bills, and we have to get that person the information by the 14th in order for him to mail out the bills. So the 14th is... The 14th is Monday, because Tuesday is the 15th. We could ask him if we're one day late, what would that matter? I think it's still Kevin Kieschnick, right? The tax assessor collector. What was that? He's gone. Okay. It's no longer. I knew he was gonna Okay, I just think it's yeah that they send out the combined tax bill So we have to know what the city's tax rate is that they can send it out by So they waiting for us.
Yeah, so they could wait a couple more days. I think They may be I don't think the people are in a rush to get their tax bill.
I Do want advice counsel that if we do delay the information to the tax assessor office As a result, they would have to send out a separate tax bill just for the city of Corpus Christi. There's additional costs to the city for that. I don't recall the amount. We had reached out to the tax office regarding that information for preparation in case there was a voter approval needed for a tax rate. So there will be additional costs if we go beyond that deadline.
We don't want to do that.
Okay, what we're going to do is move forward. I know we have a couple more comments. We'll move forward with the consent agenda item, and we're just going to move forward with the agenda, and then we'll go back to four. All right, Councilwoman Campos, and then Hernandez, and then we'll go to the consent. Go ahead.
Thank You Sergio thank you for reiterating what this vote actually means so again I just want to point out that yes maybe the mayor was not here present but I would think that she was still listening to the information that was being presented plus the months leading to this so again I want to urge and encourage all our council members to please vote accordingly and let's just get this done.
Yes, so Councilwoman, statement of fact, based on your vote, I was not here for 30 days. I was not able or allowed to reach out to any staff member to our city manager, so regardless of where I, you know, listening to the conversations or not, I was not a part of them, and it would be completely irresponsible of me to vote on a budget that I have had absolutely no input on. I have not been able to ask a question or receive a response on, and that was based on the actions that were taken by you. So that is why I cannot vote on a budget that I have not been involved in. Councilman Hernandez.
You know, a while back, just a month ago, we made a suggestion to put before the voters the final two cents that probably would have addressed some of these issues. Now, ultimately, I think the voters should be able to decide on some of these things, right? Especially on something like a tax increase for streets specifically. I don't... You know, I didn't vote for the budget last week because I thought there were some issues there, but I did vote for the tax increase just so we could get to this week so we could get some information put forward on some options. I'm disappointed we didn't see any of those real options or any work being done on that, so I don't know what we can do within this one day. If we have to do a special meeting on Monday of next week, I'm willing to do that for the 14th. But let's see if we can do anything today. Thank you.
Okay, so we are gonna move on to section J. We did have some other ordinances, eight through 13, under the budget-related items. Was the council wanting to vote on those?
Is that okay? I thought we wouldn't vote on those until, are we able to vote on those?
Okay, that's fine.
I'm sorry, I misunderstood. I thought we could not.
So let's go ahead and vote on items eight through 13. And there were some in there that somebody had a problem with? Okay, so item number eight is an ordinance amending the Code of Ordinances, Chapter 9, Aviation, Section 9-35, Parking Rates, by revising the parking rate for long-term parking at the Corpus Christi International Airport.
I move for approval. Second.
Okay, we have a motion and a second. Please submit your vote. Okay, the motion fails.
All right, so this is, these rates wouldn't be increased at the airport, which is just impact maintenance.
Okay. Item number, did anyone have an issue with 9 through 13? We already had it. I'm sorry? 12?
Okay, so do you want to make a motion? I move for approval of items 9, 10, 11, and 13.
Right. Okay, we have a motion and a second to approve items 9, 10, 11, and 13. We have a motion and a second. Please submit your vote. 9, 10, 11, and 13. Well, nobody had an issue with 9, 10, 11, and 13. The only issue was 12, so we're pulling that individually. Okay, the motion carries. Councilman Hernandez, you have a question or comment on item 12, which is an ordinance amending section 14-1341 of the Corpus Christi Code to add a fee for processing petitions for annexation.
Like, the only issue I had with this was because of the state restrictions on us unilaterally annexing in the future. I didn't want to discourage people from annexing into the city with additional fees. So I didn't think this was appropriate, so I'm voting against it. Here, I move for approval. Second.
Okay, we have a motion and a second. Please submit your vote. Okay, the motion carries. Consent, that takes us to consent agenda item section J, 14 through 27. Do we have any items that council members would like to pull? 14 through 27. 19, 20, 21. 19, 20, 21. Anything else? 27. 27. Okay, then I will, any requests from the public to pull an item for public comment at this time? Okay, there being none, we'll move on. I will entertain a motion to approve consent agenda with the exception of items 19, 20, 21, and 27. No, that's separate. Okay, we have a motion to approve. Do we have a second?
Second.
Okay, please submit your vote. The motion carries. So the first item pulled is item number 19, and that is an ordinance annexing a .99 acre tract of land located at the southwest corner of County Road 47 and FM 43. Councilman Hernandez, is that you? No. Councilman Cantu.
Have you got any feedback on this one? From any residents? No residents at this point on the restaurant, correct. Okay, thank you. I'll move to approve. Second.
Okay, we have a motion and a second. Please submit your vote. The motion carries. Next item pulled was item number 20, and that is an ordinance annexing 1.377 acre tract of land located along the south side of FM 43 and east of CR 47. Councilman Cantu, was that yours as well?
Yes, ma'am. Is this the Dollar General? Yes, sir. It is, right? Correct. Okay. Does anybody hear from them? Do you have any pictures of the building that you're going to build there by chance?
Well, I do not.
You do not have anything? I do not. Do you know what kind of building we're going to build there?
Just a general standard dollar journal that we normally do. I know you had some questions about facade and lighting. Yeah. For the facade, the developer is open to setting up a meeting with the engineers to discuss any changes that can be made for facade, even though we're not in an overlay district.
Got it. There's some concerns from residents of the just having a plain old warehouse type of building out there, and then also the lighting in the back of the homes, the back of the building facing the homes in the back. And then I believe they don't want a big old sign.
I understand. The lighting will only be in the front of the building, which faces Weber Road. It will not affect the residential neighborhood that is south of us. They have included a 41-foot buffer, which... visit the standard 10-foot offset for the back of the property there that abuts that residential neighborhood. We do studies on all of our stores so that there is a 0% light pollution on the neighboring properties. You know, if there's anything else that we can do, I know that we can install a fence with vegetation to help reduce any lighting concerns that those residents may have.
Okay. Um... Um... I think that's all I have. I move to approve.
Okay, we have a motion to approve. Do we have a second? Okay. Please submit your votes. The motion carries. Next item pulled is item 21, and that is the ratification of a city ordinance disapproving the program expenditure in funding under the termination, settlement, and release agreement between the Corpus Christi B Corporation and Elevate QOF. And who pulled this one?
I pulled it. I just want to do a vote by itself on this one. Thank you. I move to approve.
Second. Okay, we have a motion and a second to approve the item. Please submit your vote. Okay, the motion carries. Next item, last item pulled is item number 27. That is an ordinance amending the chapter 380 incentive agreement with La Palmera Mall. And who pulled this one? Councilman Hernandez, go ahead.
Mayor, before we do that, I know we had two people from the port here. Both of their items were approved in 24 and 25. I wanted to see if they had an opportunity to at least say something on their agenda item before we do 27. Sure. Kent?
Did y'all want to say something? Are you... recommending they say something. This is a very good news item and items 24 and 25 are related. 24 is a motion authorizing the execution of the interlocal agreement with the Port of Corpus Christi. This is for flood wall upgrades at the Science Museum for the Port of Corpus Christi Authority to design and construct a flood wall or bulkhead with concrete apron, provide flood protection, pedestrian connectivity, and ship channel operational improvements.
Yeah, so I'll just say in general, appreciate the opportunity to work together. I think when we get that opportunity and we do work together. We're far stronger. We're going to be able to accomplish things that we wouldn't have been able to otherwise. I appreciate the approval. We're going to do the same at our commission meeting as well. And also wanted to just thank Peter. Peter and I work together quite a bit behind the scenes, which doesn't always come to a council or a commission, but appreciate the teamwork and the collaboration. Thank you, guys.
Thank you. Thank you. Appreciate it. You're good? Well, thank you for all the work you've done as well, both of you. Okay.
Okay. Okay. I just wanted to clarify something on the, on item number 27. There's no additional funding associated with this. It's just an extension of the timeframe to, to get to that funding. Is that correct?
Yes. Jennifer Buxton planning and economic development. Correct. It is an extension on the 25 year agreement to 2045, giving it a 35 year time period with no additional funding.
Okay, I just want to make sure that was clear. We're not providing any more funding. It's the existing funding that was already approved back in 2028, or I'm sorry, 2008?
The first year would have been 2010 of funding, yes.
2010? Okay. But the agreement was in 2008?
Yes, sir.
Okay, so I just wanted to clarify that, that we're not just handing out money. We're doing our due diligence here, giving them an opportunity to complete what they're doing.
Yes, sir.
Okay, thank you. With that, I make a motion to approve.
Okay, we have a motion and a second. Councilwoman Paxton?
Well, my comment was actually on item 24, but I just wanted to thank the port because this is not only gonna be a very valuable enhancement to that structure, but through this partnership, it's a huge saving to the city and it's an incredible facility for the public use, so thank you for that. Hopefully, and I don't know if it's possible, but I'd love to see if there was fishing returned over in that area somewhere. I've actually had some people bring that up to me. I'm sure we'll see beautiful designs in the future, but thank you for your partnership.
Councilman Roy?
I wanted to just speak on the item number 27, the La Primera Mall. Yeah, I think this is a good news item. Number one is that I know the world is changing and a lot of people are buying things on eBay and whatnot, but The other thing is that I really do believe overall when you take a look at the number of the fraud that's involved in a lot of times when you're buying things and you're not familiar with the retailer on the other end, there's a lot of issues there. I think America is, in my opinion, is going back. and welcoming the ability to touch something, to deal with a live person, to make that purchase. And we're losing our malls in America. And I think it's so important that we stand behind this. And it's a great thing. And I think all the things that are coming forward with La Palmera, it's just extremely important. I don't want to lose that mall. Thank you.
Thank you, sir. Councilwoman Campos.
Thank you. I just wanted to also just thank the people that continue to invest in our city. I did make a request that perhaps may be a demand that at least if with the incentive that they plant more trees on the back end of the Padre Staples Mall, that is known as a heat zone, and they could really help out with that. I hope that they're listening and I think it's a good news for the city of Corpus Christi that they have invested and that they've reached out to some of the other companies that are already here and continue to see Corpus Christi as a place to come play and work here. So with that, I hope that we're able to pass this I'll pass on my to, I guess, Eric.
You want to turn your light? Yeah, he spoke. Okay, I think we have a motion and a second, so please submit your votes. Okay, the motion carries. Thank you, Jennifer. Okay, so let's see, we have, it's 1.47. We're gonna go ahead and break for lunch. We'll come back and go to public hearings, individual consideration items. Let's see here. Okay, so the council will go into executive session on items 32 through 33 per Texas Government Code Section 551.071 and 551.072. And we will return.
I was just going to say that we got a call this morning from the auditor's office for item 31, and they're not ready to present today. Okay. We'll move that out. Did they call you, Councilwoman Paxson? We asked that they call Councilwoman Paxson.
I think they were asking about the timing. They were able to present, but they were trying to confirm on the timing as their short staff. So I don't know if we can move that item up earlier, and that may alleviate that issue.
Okay, earlier in this meeting today?
In the agenda, yeah.
Okay.
I think they were anticipating it being quite late this evening.
I see, okay. Well, we can call them back.
Just get confirmation, Peter, and see what we need to do.
Yeah, okay.
Okay, thank you. So we'll return. Okay, we're gonna go ahead and bring the meeting back to order. We left off on section L, public hearings, items 28 and 29. So item number 28 is a zoning case number ZN9151, MVR Construction Company, Inc., located in District 3. Ordinance rezoning a property at or near 6201 Greenwood Drive from the RS6 Single Family 6 District to the CN1SP Neighborhood Commercial District with a special permit.
Good afternoon, Mayor, Council, Yvette Wallace, Interim Director, Development Services. This property is located in District 3 with a request to rezone the subject property from RS6 Single Family 6 District to an RS6 with a special permit. The subject property is currently vacant and not platted. 60 notices were mailed. I'm sorry. Slides are out of order. 60 notices were mailed inside the 200-foot buffer. One notice was mailed outside the 200-foot buffer. And three notices have been received in opposition, totaling roughly 1% of the neighborhoods within the 200-foot buffer. Sorry about that. I have a slide missing. So the zoning and land use. So to the north is agriculture. And then to the south is high density residential, east is medium and high density residential, and to the west is agriculture vacant. The proposed rezoning is inconsistent with the city of Corpus Christi comprehensive plan and future land use designation of median density residential. Staff considered the inconsistencies to the guiding documents and also looked at the regulatory floodway that is in close proximity and a portion of the property to help with the special permit. Planning Commission recommended denial of the original request and staff and the applicant agreed to an alternative RS6 with a special permit. And that is something that we also had Planning Commission agree to. And on that, these permit conditions that we agreed to, and I'll just go high level on the ones that are the most impactful for this area. So the use, the only use authorized by the special permit other than the use is permitted in the base zoning district of RS6. is a warehouse and freight movement used particularly as a storage warehouse, including office space with indoor storage of up to 10 vehicles. Storage of fuel and loose aggregate materials is prohibited. There will be a buffer yard required of at least 20 feet and 20 points. All lighting must be shielded and directed away from abutting residents in nearby streets. Signage, only one freestanding sign will be allowed. Noise regulations will adhere to Section 31.3 of the Municipal Code. And hours of operation shall be limited from 8 a.m. to 5 p.m.
Okay, we have a motion and a second.
Did you have a comment, Councilman?
Okay, we do have a motion and a second. Councilwoman Vaughn?
I just have a couple questions. So they didn't want it there because it's like a throw-down yard for their equipment, correct?
So originally it was more than just a lay-down yard. There was going to be a proposal for fuel storage, outside storage of vehicles, and what was requested was a light industrial. We recommended initially a CN1 neighborhood commercial, and then we have taken down what would be allowed in that area to include the warehousing and freight. with limited amount of vehicles, no fuel storage, removing some of the issues that the neighbors had.
So the building will stay? Correct. Okay. All right. Thank you. Councilwoman Paxson?
Thank you. What were the three oppositions, and was it to the amended or the original requests?
So it was to the original request that went to Planning Commission, and then also to the amended request of CN1. So it went from IL-1st, then to a CN1, and then to an RS-6. So the opposition that we received And I can tell you that was a lot of what we just kind of covered. So it's the noise pollution, the light pollution, the proximity of fuel storage was the initial one. And we've since removed the fuel storage from this, the hours of operation, which is why we limited those hours from eight to five. And then also the amount of vehicles, like the larger industrial vehicles, which is why we have restricted the amount of vehicles for that property.
So it is... One of the renderings looks like a, you know, it looks kind of nice, that storage facility. I guess my thing is, is it's right in between so much residential.
Sure. And so there is an AEP easement that's along one side that already acts as a natural buffer because they can't really put the buildings in that place. So they're going to exceed the 20 feet required. And then there's going to be an internal roadway that's going to give it an additional buffer in addition to the 20 feet on the other side of residential. And I'm sorry, I pulled up the site plan here right above to kind of show that that it's a very long, narrow lot. And so the buildings would be proposed on one side and the AP lines are against those buildings or in the rear of those buildings. And then there's still an easement buffer on that or a buffer, 20 foot buffer. And then on the other side to the east, that is going to be I'm sorry, to the north is going to be residential as well. But then there's a 20 foot buffer and then there's also a roadway in there. So it's going to give an additional buffer.
Are they going to be putting any kind of fencing or barriers to kind of, you know, if that's your home up against what's going to be that roadway and now going to be a new storage facility? You know what I mean? That's quite a big change to their current.
Correct. All commercial businesses require that buffer, like as we will buffering or landscaping requirements would require that kind of screening. So in addition to landscaping as a buffer, they would have screening requirements. So the screening can be done in multiple ways. It can be masonry, which doesn't always help with sound. Sometimes it actually increases the sounds. And there's other methods where they can put up fencing that has noise reduction to it.
Okay. Have they indicated doing one of those?
Yes, they have. Okay.
Okay. Okay. And is the... I'm looking for the picture. I'm sorry. I'm trying to find it again in the packet. Um, there is a rendering. Okay. There it's, um, it's kind of a sharper looking building. Is that more realistically what they're, I know it's just a rendering, but do we think that's kind of what they're going for? I don't know what page it would be on yours. It's our site plan.
Oh, sorry, it's right there on the corner. Yeah, so it's more of a contemporary warehouse than it is just a metal prefab warehouse.
Okay, and I think you said it earlier, but the lighting is going to be minimized or controlled so that it's not disruptive to the R6?
Correct, it has to be downcast and it has to be pointed to the property, not away, so it can't be pointing to the residential properties on either side.
Okay, and when we remedied some of those concerns that were voiced in those letters, did we ever make contact with them again and tell them they were remedied?
So we met. each individually after every planning commission, because they did come out to speak at planning commission against it. And we talked about the changes that we were making. And what was their sentiment after that? After the second planning commission, I went to planning commission three times. It was tabled twice. And on the third time, we finally moved forward. So on the third approach, the RS6 SP was something that was more palatable to them, whereas before they still had concerns. So as a CN1, as an IL, everyone had concerns as a CN1 and SP. they had concerns they were very much against fuel storage even though it was diesel which is really not as big of a concern they were against that fuel storage on that site and with the proximity to the regulatory floodway a floodway that's at the rear of the property okay and so were they were okay with the r6 yes we worked out those details and again reduced hours they didn't want to wake up but you know seven o'clock in the morning to commercial vehicles you know with backhoes out there getting ready for the day so which is why we moved it down to eight to five
Is the roadway that's going to the north of the property, is that just for their internal use? That's just for that property to use?
That is an internal drive. Okay.
And the building is going to be on the south?
Correct.
I almost wonder if it wouldn't be better to flip it so that there's less traffic.
So we thought about that, but the AEP easement that's there works out better for the buildings to be on that side. Flipping it would become more problematic when it comes to how narrow the lot is.
Okay. Well, thank you for all this information, Yvette.
Yvette, thank you. Thanks for working with the developer because this is, I think, important in terms of the development, which is the next item. How many homes is that?
So the next item is 920.
920. So this is basically to help facilitate building 920 homes.
And that is just one portion of the project. There's commercial surrounding it and multifamily as well.
I think this is a great project. And again, thank you for, I mean, that's the point, right? Facilitate, work with our developer, and move the project forward. So I'm happy to see this. We have a motion and a second. Councilman Cantu?
Hang on, I got a couple questions. Yeah. The front entrance will be on Greenwood, right?
The frontage will be on Greenwood.
Okay. And then we're going to limit him hours?
Correct.
For his business?
Eight to five. Well, it's more of the machinery coming in and out. So limiting that to eight to five to not disrupt the residential budding on either side.
But isn't there like body shops and warehouses around those neighborhoods?
There are body shops on the other side of Greenwood that had been there before the zoning was set for that area.
Gotcha. Okay. All right. Thank you.
Okay, please submit your vote. Mayor, we need the public hearing, please.
I'm sorry?
We need to open and close public. Yes, sorry. I'm going to open public hearing. Is there anyone in the audience that would like to make a comment on item number 28? Okay, there being no one, we will close public hearing and please submit your votes. Okay, the motion carries. Next item, item number 29, is zoning case number ZN9079, MVR Construction Company, Inc., located in District 3. Ordinance rezoning a property at or near 5514 Greenwood Drive from the CG2 General Commercial District to the RS4.5 PUD, single family, 4.5 district, with a planned unit development overlay.
So the subject property is 134.53 acres of land that is currently not plotted. It is in District 3, and it's located at 5514 Greenwood, or as most of you may know, the large parcel behind Walmart and the movie theater that's been there for quite some time. The area request outlined in red is part of a larger property and development, so that's kind of what I was alluding to earlier. So surrounding will be multifamily and commercial, and the only thing that we're discussing today is the area indicated in red. That is currently zoned as general commercial and the applicant is petitioning to rezone it to an R64.5 with the planned unit development. The purpose of this request is to allow single family development with deviation to the lot areas and lot widths. Through the PUD, the applicant is requesting a minimum lot area of 4,000 square feet and minimum lot widths of 40, contrary to the Unified Development's code requirement of 4,500 square feet and 45 feet minimum lot widths. The property is part of the Westside Area Development Plan, which was adopted on January 10, 2023. Except to the west, the area request is nestled about CG2 or General Commercial Districts to the north, south, and east. To the west, properties are zoned General Commercial District and Light Industrial. Regarding the required public notification, 12 notices were mailed inside the 200-foot, two notices were mailed outside the 200-foot, zero notices were received in opposition, and four were received in favor. The property sits between Greenwood Drive, Hawley, and Crosstown Expressway. The PUD will contain approximately 920 residential lots. The deviations include a lot area, sorry, include lot area, lot width, and block length. Lot areas will be at a minimum 4,000 square feet, lot widths will be at least 40 square The larger parcels which are not within the PUD boundary will maintain their current zoning district and be developed with commercial land uses and possible multifamily. It's important to note that the developer, I'm sorry, is seeking RS 4.5 with a PUD to allow for market flexibility with some smaller lots at 4,000 square feet and widths of at least 40 feet. The developer does not intend to build the max density allowable in the RS 4.5, which would be 1,041. And instead, we'd be looking at building approximately the 920 lots at differing lot widths and number of stories, allowing for full market flexibility. with homes ranging from $200,000 to $300,000. Greenwood Drive and Crosstown Expressway frontage are connected, and Silverberry will continue through the planned unit development connecting down to Holly. This is just the east half of the commercial lot and the left half of the lower corner lot. It was too large to put on one slide, so we broke it up. The parent development, which is what I kind of talked about earlier, is around the boundary of the PUD, whereas the PUD is indicated in yellow. The red is commercial lots that are outside the area of request. A multifamily is still proposed. We just don't know where that would go at this point in time. The proposed rezoning is consistent with the City of Corpus Christi comprehensive plan. However, it is inconsistent with the future land use designation and mixed use. The request is part of a larger mixed-use development that will incorporate single-family residential, commercial, and multifamily uses. The applicant's request agrees with the Comprehensive Plan and Westside Area Development Plan in support of infield development. The amendment is compatible with the present zoning and conforming uses of nearby property and the character of the surrounding area. Staff recommends approval. And I stand by for any questions.
Thank you, Annette. Councilman Roy.
Thanks for the presentation. I just had a comment. I know some of the council members are going to remember the Bohemian Colony. Remember that project? I think we actually did a TIRS for that. And I was all excited about that project. It was 97 acres, I think. And then all of a sudden it kind of went away. The interesting thing about this is that this area now, even though it's not in my district, I'm still pretty pumped up about it because this area has recently kind of went It's kind of a resurgent type area, and it's pretty exciting. In the long term, I think after we get some of this residential housing in there, maybe, just maybe, they'll end up revamping that retail center in the middle there. I don't know. To me, it just seems like the movie theater could use some upgrading and maybe some of the other But I definitely think it's an area to watch. I really do. The proximity to be able to get into downtown, you know, the new bone and...
Bone and... South Texas Bone and Joint.
Bone and Joint Clinic. South Texas Bone and Joint. Yeah, amazing facility. Anyway, I'm just glad to see something there in that area happening because I was so disappointed that the Bohemian colony didn't come to fruition.
That's a great point. So retail and commercial markets, they look at that. They look at the number of rooftops to determine what they're going to revamp or develop.
Yeah, this is going to be a hot area. Thank you.
Councilman Bonino.
Yeah, thank you, Mayor. I also want to echo that. I want to thank the developer. You know, there's been, I mean, 30 years of history to try and develop this property. And I wish you the best. You know, I'll say a few Hail Marys for you. What is it? Throw a Hail Mary pass. I mean, I can't tell you how much we appreciate it. And, you know, things like this, you know, once again, as I say, it's ad valorem to, you know, help CCISD with their situation. You know, projects like this, you know, it's not just for the city because there's an ag exemption. I think we're getting $5,000 a year in revenue because of the ag exemption that it's really, it doesn't do anything. And this is just a great project. Thank you.
Councilman Hernandez.
Yes, thank you. You know, on your PowerPoint, you didn't include Planning Commission, but I'm assuming that's the case because it was in the agenda memo for Planning Commission approval?
Yes, staff and Planning Commission recommend approval.
Okay, well, it only says staff on your PowerPoint.
Yes, sir.
Okay, the... Now, we're only doing zoning, but obviously you've got to have entrances and exits, right? So are we making a modification to the transportation plan or anything like that to account for this?
This one didn't require a modification, but Silverberry, which runs from Silverberry Drive, is going to extend down. So there will be a connection. I know it says Silverberry Drive there, but there is a connection point back behind Silverberry Drive, so back behind Walmart and the movie theaters. And then you'll see a road that's running from Crosstown Expressway to Greenwood. And then there is no, there's a direct connection at Hawley. So one direct connection. So we have one, two, three, four points of access.
Four points of access. Okay. Are we going to have to make any modifications? I mean, these are C1 collectors?
Okay. So at some point, some modification will need to be made.
If it's on the master plan and you wish not to build it, then you have to amend the roadway master plan. But you can always build something that's not predicted on the master plan without redoing the master plan.
Okay. But are we going to add it to the master plan?
We've never done that before, but it's not to say that we can't.
All right.
On the next one we bring forward, we can add it.
Okay. I'm just stickler for the details. Okay. Thank you.
Councilman Kinty.
Before he owned this property, did we put money in this property, the city did, like for sewer and water and all that stuff?
So there's already infrastructure that's been in place surrounding the entire property for decades now. So water, wastewater, all of those utilities have already been there. there's no internal infrastructure, but all of the perimeter infrastructure has been in place.
So we never did anything like added, added more stuff to it.
Not for this particular property. It was just infrastructure improvements in general for that.
What about Holly road? Are we going to, is there any, um, any, um, um, um, making it, making a four way.
I don't have that answer for you, but we can look into that.
Because it's a two-way right now, right?
It's a two-lane.
Yeah. And how many homes is he going to build in here?
What's the average per footage?
It's going to depend. So he's going for some smaller, so entry-level homes, and you can have up to a larger home. So I would say on average, your smallest is probably going to be about 1,400 to 1,600, and then you can have a larger home.
Okay. I'm going to approve. Second. Second.
Councilwoman Campos.
Thank you. Well, I've grown up in this area, so yeah, I've been waiting. And I remember the Bohemian project. So yeah, this is a long time coming, and I wish this company well. I hope that they succeed. And yes, I can also attest that the bus goes through that Silverberry and in between because I've got a sibling that uses that and is grateful for that. So hopefully, again, this will also spur some new development. And I wish them well. So thank you.
Okay. Okay. We have a motion and a second. Is there anyone in the audience that would like to make comment on item number 29? There being no one, we'll close public comment and please submit your votes. Okay, the motion carries. Our next, thank you, Yvette. We're gonna go to section M, individual consideration items. Item number 30, and that is a resolution establishing an ad hoc committee to review the city's procurement of professional services, including architectural and engineering services, and recommend improvements to city processes and applicable state law, as requested by Councilmember Kaylin Paxson. Go ahead.
I think staff had a presentation.
Good afternoon, Council and Mayor. Sergio Villasana, Director of Finance and Procurement here. The item before you is... We have a presentation on procurement for professional services, and the presentation is mostly informative. What we're asked to do is look at the rules for procuring professional services, some of the best practices, as well as our internal practices, and looking at other cities. And so here what we have is basically kind of what we want to highlight. What you'll find a recurring theme within the presentation is Government Code 2254 provides strict guidance on how to procure professional services, and it really focuses on certain professional services, including engineers, architects, serving services, CPAs. And the government code tells us that these types of professional services must be selected based on demonstrated competence and qualifications. As well, once you've determined the most highly qualified firm based on demonstrated competence and qualifications, then you would move on to the next part, which is negotiating a fee. Now, if both parties can't come to an agreement, then the city would be required to move on to the next most highly qualified professional service. So this government code not only governs cities, it also governs the state. So some of the best practices we looked at was also at the Texas State Comptroller's Rules for Procuring Professional Services, as well as the National Institute of Governmental Procurement and Texas Municipal League. So what we did, the staff pulled together some of the items in the original agenda memo, and what we have for you is basically the state law, best practices, our practice, and other cities' practices. Uh, so we'll start with here, uh, solicitating, I'm sorry, solicitations and marketing. Uh, so the Texas government code doesn't tell us exactly how to do solicitations or marketing. Uh, we did look at, um, some of the best practices, which include publishing your solicitation, which is our request for qualifications, uh, is what I would consider our solicitation. We publish that out there. Uh, so best practices to post that broadly provide enough time for professional services to respond. use control questions and answers, and then release that information to respondents equally and make sure they have equal access to it. And what you'll find is our practice and process line up with those best practices. For engineering services, our RFQs are posted on sithcastusa.com. This is a national platform. We publish our legal notices in the Caller Times. We allow a time frame of about four to six weeks for respondents to submit. We provide pre-submittal conferences. We allow written clarification, so respondents are able to submit questions, and when the city responds to those questions, it's all responded through CivCast or an addenda, and so it gives equal access to all respondents. We looked at other cities, and most cities follow the same methodology. They have their own platforms, their own process, but this is kind of the best practice that we follow to comply with government code 2254. Next item we looked at was qualifications and scoring. Here the state law requires that we select the most highly qualified provider that's demonstrated competence and qualifications. We do want to highlight that competitive bidding is strictly prohibited by government code chapter 2254. So we can't have low bid on these types of professional services. So best practices, we looked at what was out there. So it was important to, as far as the best practice, publish our criteria and weights before responses are evaluated. Score every statement of qualification using the same criteria. Using evaluators with relevant expertise or basically subject matter experts should be part of the evaluation committee. And we need to document and provide the basis for scoring and rankings. So if we look at the city's practice, this lines up with best practice. We use a basic pass or fail minimum qualifications. We do have evaluators that score independently. We conduct interviews if needed to further refine our process. Scores are added and tabulated. And some of the criteria we use is firm experience, team experience, resource, past performance, and understanding the scope. We looked at other cities and what we found is they pretty much follow the same practice for these types of professional services. We wanted to highlight the quality controls or bias controls. So government code chapter 2254 doesn't tell us exactly how to do that. What we found best practice from the Texas Comptroller of Public Accounts was at least having three to five scoring members that they have relevant multidisciplinary expertise, independent evaluation criteria is published, clear documentation, and evaluator preparation. We look at NIGP, which basically stresses very similar items. The way the city operates, we provide a committee of five members, including a licensed engineer, a construction inspector, a client department subject matter experts as part of the committee to evaluate the RFPs. The procurement team within finance, which is separate from engineering, controls the communication process between departments and the professionals that have submitted their qualifications. We do this for process and consistency as well as being able to document separately from the department. As mentioned last time, material scoring anomalies are looked at by the procurement capital team. And they do reach out to the evaluators to kind of discuss those. but we can't force the evaluators to change their scores. We looked at a couple other cities, and we found that the city of Houston limits evaluators to no less than three, but also have no more than five. The only one that had somewhat of an in-depth evaluation process was the city of Austin. The rest of the cities we found were consistent with our practice. We also looked at high and low scores to see if others were excluding those. But we found that the state law doesn't allow for that particular practice. Again, we have to go back to selecting the most highly qualified, competent firm. The Texas Comptroller's... So best practice here is to use published criteria that consistently... Okay, so sorry. Best practice by the Texas CPA favors independent scoring and documented decisions. That is our practice. We don't immediately discard the high or low scores. We do require written justification or notes within the packets when the scores are unusually consistently high. Significant variances are looked at. The evaluators may revise their score if information was misunderstood or overlooked, but again, they retain independent judgment. We looked at various cities and we found that no other cities are able to do remove high and low scores. The next item is local preference. Chapter 2254 doesn't allow for a local preference or having an offense in a city as a scoring metric. We found some of the best practice which we have implemented here is if the Proposer, the respondent has experience working locally, so understanding local conditions, that could be a criteria used to add scoring, and the city has adopted that policy. So that is under ordinance number 032657. We allow for 10 points for having local experience. We looked at other cities. We found that other cities also do not have a specific local office preference or having a presence. being present within the state as a criteria because they must also follow government code 2254. We found some don't include local experience as a requirement. We found some others do also do similarly what we do as far as having a criteria for understanding the local conditions. Next is a military veteran preference. Chapter 2254 does not contain a military or veteran-owned firm preference. when selecting these types of professional services that fall under this code. The selection, again, must be based on demonstrated experience and competence. Our best practice is encouraging to gather that information, as we do use that information for non-professional services that don't fall under Chapter 2254, as well as other commodities. Fee negotiation is the next category we looked at. So the city first must select, based on the state law, the most highly qualified provider first, then negotiate a fee. If the negotiations fail, then move on to the next highest-ranked firm. Texas CPA advises that we keep pricing out of the initial qualified-based selection ranking. Once you've selected a firm, then negotiate scope, level of effort, and so on. Our practice is the same. is where we basically rank all the respondents first, then the highest ranked respondent, the fee will then be negotiated. Other cities did not publicly advertise or publish on their websites how they negotiate fees for these types of professional services. We did find that the city of Austin has a certain rate review for consultants on their website. The last slide here is procurement efficiency. It was another category that was listed in the original agenda memo. And again, the state law doesn't tell us how to be efficient. We looked at best practices. I'm going to skip that because we line up with best practice. We use standard templates. We have clearly defined requirements. We provide instructions for the respondents. We publicize nationally our request for proposals, request for qualifications. and CIFCAS USA, the Corpus Christi Caller Times. It's also announced on our procurements website. We allow times for questions and answers from the respondents, and then we provide a fair response to all through using the same platform. We look at minimum qualifications. We have independent scoring. Interviews are conducted as needed. Firms are ranked. Fees are then negotiated, and the contract is awarded, and the contract is executed. That concludes the presentation on the best practices, the city's practice on the selected items.
Councilwoman Paxton.
Thank you for the presentation. Chapter, just to be clear, Chapter 2254, that's specifically A&E type contracts. That's what you were referencing in this presentation. Let me go to that.
Right. The government code actually lists, I'm guessing here, about 10 professions, so engineering, architects, CPAs, and there's still maybe like five or six more under that chapter specifically. There's other professional services that don't fall in this category.
Sure. I appreciate that. I think one of the common themes that you demonstrated throughout your presentation was you cited the Texas code, and then you said most cities follow some sort of a close variation to what we do, which is what the code is. Great, we're following the law. That's perfect. To me, that's one of the big driving factors behind wanting to call this committee for a brief period of time is, to look at what could we do across our procurement. And I'm not saying that we're not following good practice. I'm not saying any of the other cities are not following state practice. I'm not saying that at all. I'm saying how can we encourage this kind of competitiveness in a way internally that some of those things that we hear all the time that could be deterrents could be addressed. Other things that could drive down costs. I didn't see anything throughout these slides that talked about what are our insurance requirements, our bond requirements, those thresholds, and is that state, is that practice across the other cities, is that just our policy thresholds that we like? Because those are costs that are gonna be transferred onto us, right? And so those are some of those thought processes behind this as far as making a recommendation for our local policy. I'm not at all advocating that we step outside of the state policy, but that's where that second element behind this would come in, which is all the cities are having to follow this because it is the state law. But is there, by evaluating the intent behind the state policy and the execution or the normal practice behind private industry where there's more cost, but still you can have a great product. I mean, people can hire, you know, engineers, architects, builders, and have a beautiful product in the private sector. they're not sacrificing that quality so that's why there's that dual nature behind this request which is evaluating all of the elements of the local procurement and state and saying this is what we could do to open that up this is some policy and i recognize where this said no preference you can't really put something above the um Qualified portion, you know, so you address some of that like military local preference things like that But then in other in other procurements, maybe it's a small threshold procurement Maybe it's specific projects type, you know There's specific funding for diag those types of things that we could look at in those local policy recommendations and then say Evaluating the state behind their intent. How could we make a recommendation that? that that would still come out with a good product but would help cities because of course the whole cities across the state are following the state code that makes perfect sense right i mean they have to but that's where i'm saying we could we could really look at this internally and we could really actually step forward i believe and make some good recommendations that this council could then work with our igr team to go advocate those types of things so i appreciate that presentation
Councilman Hernandez.
Okay, so I'll read the code directly. 2254.004. In procuring architectural, engineering, and land surveying services, a government entity shall first select most highly qualified provider of those services on the basis of demonstrated competence and qualifications, then attempt to negotiate a provider with a contract at a fair and reasonable price. What is your definition of fair and reasonable price?
I'll hand that over to Jeff here. The Department of Engineering Services handles those fee negotiations.
Jeff Edmonds, Director of Engineering Services. So unfortunately, there's not a light bulb that goes off when you reach something that's fair and reasonable. It's an iterative process, and the first part of it is defining the scope. You have to go through scoping. And then you go through negotiation. And we go through kind of a zero-based budgeting exercise where they build it up with a work breakdown structure, task by task, and then they're putting labor hours for different labor categories on there and loaded rates. And we... test that for reasonableness. We test it for consistency across.
How do you test it for reasonableness?
Well, our folks that are doing this, this is what they do all the time.
Okay, so if you can explain that. So, for example, are you keeping a historical record of what these companies charge by hour and average it out to say that that's what the norm should be, or how are you determining that?
We don't actually have a database on that. We maintain, but we... It is kind of based on feel. It's based on what we're consistently seeing. You know, if you see somebody that's charging way more for a particular...
But you're not keeping track of what that looks like on an average basis?
Um... I would say not explicitly. We are, from a budgetary standpoint, we've got sort of a mark one eyeball of 10%. If we have somebody that comes in way north of that on estimated construction costs, that's usually kind of a red flag that we drill down into.
So is there like a reference point, like a professional site that says this should be the average cost for this year in this particular market based on these particular circumstances, do you have some sort of professional site that you can reference to?
There are some sites that publish like... Do you utilize them? Compensation rates. Does your team utilize them? I would say so. I mean, there's different sources, resources. Okay.
Is there a codified or policy, written policy on how you should determine what is a fair market price for this particular year?
I wouldn't say there's anything that's published exactly like that, but. There are publications that look at cost relative to construction dollars for different types of projects. You know, there's not a gold standard. There's not a, you know, one go-to source that's going to tell you what you should pay. And in fact, the latest publication on this, which is American Society of Civil Engineers Manual Practice 45, They used to do curve fitting, and they would publish curves, and this manual came out around 2012 is when it was published, and they went away from fee curves, and they published the spread. They published the actual data points rather than curve-fitted lines, and there's pretty significant spread.
Okay, so with procurement on this, without having some sort of formalized policy on how you determine what costs should be or negotiated costs should be, obviously you can't do it on the selection process, but on the negotiation side, there should be some formalized process to determine whether or not the cost is structured correctly. Okay. So because, I mean, when it comes to us, it's a yes or no kind of situation, right? We don't have any insight into, well, at least it's not part of the agenda memo or the documentation. You have to ask for the individual scoring by whoever did the scoring from that. It's not part of our package. So by the time it gets to us, it's just a simple yes or no. there's not a lot of detail behind how one was selected versus another one. It's just we selected these guys because we thought they were the best with no real understanding of how they were selected other than just that grid that says, okay, these people scored the highest. But when you have situations like, like I gave this example last week, when we selected Fries and Nichols to do an evaluation for DeSalle, when they had no previous experience in DeSalle, and somehow they were selected anyway. And then we ended up with a project that was five and a half times the original cost they estimated. It calls into question, how are they selected? When you have those kind of scenarios, how do we get that comfort factor to saying that this is the correct way to do things or the process is fair?
Well, I will say that it is a two-step process. You go through the selection, and I will agree that the only time that council is seeing that is typically when we're doing the mass selection process. And we're announcing those selections to council and getting authorization to negotiate those contracts up to an aggregate amount. So that's one that you guys, what you don't see there is the second part. But normally, if it's not one of those mass selections, you're not seeing the first part until it's already coming with a full-blown scoped and negotiated contract.
Okay. Well, I understand what Councilwoman Paxson was kind of trying to set here is to have kind of an oversight on the process, separate from council, obviously with an ad hoc committee, or maybe it could be a standing committee to review these kind of processes, but I'll let others ask questions.
Councilman Gumbels.
Thank you Okay, so when it comes to the committee the consists of five members Is it typically the same five members or you all rotate or how does that know it depends on the project?
It's project specific. So usually you'll have a couple of people that are assigned from my department and the whole process is overseen by contracts and procurement and then we'll have somebody well, we might have somebody from construction to and and then you'll have a couple of people that are from the operating department. So if it's for a fire station, you might have a couple people from fire on the selection committee. You might have a couple of people in project management upstairs that work on facilities, and then somebody from construction.
For example, the desal project, since there has not been a desal project, how would you have determined which committee members would be
Part of that do you mean for the one where the key wit they were selected? Yes Well, that was a subject of quite a bit of discussion I Would say we we had a lot of people involved with that project that discussed who should be on that evaluation committee Hmm
Okay, well, I guess then I need to I wanted to ask, I see that the city of Austin requires in depth training for evaluators, including ethics and anti lobbying. So I would, I mean, is it safe to assume that we have anti lobbying in our committees?
Clarissa Johnson, Interim Assistant Director of Contracts and Procurement. Yes, we do have anti-lobby provisions in our solicitation. Both that go out to contractors, and it is understood within the evaluation committee that they're to abide by. We are in a no-contact period from the time the solicitation is issued to the time that it is awarded.
Well, only because one of our employees, what's his name? Brent? No. Can't think of his name. Went directly from here to Friesen Nichols. Who? It is Brent, right? I'm just wondering how, if it happens more often than we know, that our engineers are going to the private sector and back and forth, like, does that happen pretty often?
That's actually, I think, an HR issue.
No, I mean, that can happen. Now, there's... We had a policy at one time that provided a certain sunset period that you couldn't work on a city project for a consultant. You couldn't work on the selection of a consultant and then go right over and work for them. Now, it is a fact that he went to work for Friesen-Nichols. He also went to San Antonio, and he's working on an aviation project in San Antonio that really doesn't have much to do with what he worked on when he was here.
But are you saying that we do no longer have that provision in place where we have a standing rule that you can't just go from, you know, from city of Corpus Christi to the contractor within 90 days, 120 days?
Well, now, it's what you can do. That's correct. That's still the policy. That's still the city policy. It is a city policy? Once you leave the city's employment, it's 12 months.
It is 12 months. You can't work for the contractor. Because I thought that Brent went directly on city projects. Okay, but the city project was the Inner Harbor, and then he went to go work for Friesen Nichols.
Doing aviation projects in San Antonio.
Not, hmm.
Right, so he didn't go to work for them working on the Inner Harbor project after he left.
Okay.
City of Corpus Christi.
All right. Well, thank you.
These people, when they leave here, they usually are taking a job somewhere else. Yeah. It's either the city or it might be consulting engineering. You can't say, well, you leave here, you can't work for 12 months.
No, but you can't work on the same project that you were. Correct. Okay. Okay. Well, thank you for clarifying that. All right. That's all I have for now. Councilman Paxson.
Thank you, Jeff. Thank you everyone for the presentation. I think still at the end of the day and it's no fault of our department because it's state policy. The big thing behind this is, you know, we hear it a lot. We hired the same X amount of contractors and there's so many complex reasons as to why that would happen. So part of this is evaluating that. It's that so much of our costs are increased because we're a city entity. and they charge us more, and that's not you, that's not me, that's none of us, but it's not exclusive to the city of Corpus Christi. It's a systemic issue, and anytime we try to have the discussion, how can we discourage that? It comes back to these state policies. It comes back to how do we have to post it, and so that, to me, is the reason that I think having a committee of professionals who understand private and public sector and they can evaluate all of this and come up with some good recommendations is really important, is to try to tackle those things. And so for that, I'd make a motion to approve. Thank you.
Councilman Bonita.
I just want to, I guess, reiterate, as somebody that competes for professional services, not necessarily as an architectural engineer, I'm just going to make some comments, but... You know, and then I get stuck in between whether or not it's a professional service or you can include the pricing. I think the situation is when you have professional services, what determines the price is the market. And, you know, about two years ago, Corpus Christi, exceeded the the average wage exceeded that of the state of Texas and in some areas it was we exceeded that and if you deal down on it a lot of it was professional services and the challenge is is that when you have a city that's growing and you have tons of infrastructure improvements well then and you want to recruit and I and I always talk about paper Dawson down the hall sorry Rob But I think eight years ago, half was probably two employees, and you're at, what, 18, 20 now? So he's acknowledging that. Babe Dawson, you know, what is it, has a staff full of people, several people that had left Corpus Christi and came back. And what happens is when they get into a bidding war... And they have to compete for all those engineers, and they have to recruit them from all over the state. And there have been several that are local that have come back, and Mr. Schultz being one of them, went from Austin, came to Corpus, grew up here, born and raised here. And in order to do that, that drives the cost higher because the market is competing with each other. And I was accused last week, and I wrote it down, of worshipping the idol of capitalism. And that's just the way the process works. I mean, it's no different when we argue about Peter's pay. That's just what the market requires. So I understand your point. It's difficult on my services to pin it down to an actual cost because I feel like our firm provides a ton of added value. And it frustrates me to no end when you have a firm that comes in and says they'll do it for half the cost. Well, they're providing probably a third of the real value. So I firmly believe in the system that we have. I think there are challenges in procurement. But when you're running a billion-dollar organization that has a CIP that goes into the billions over time, then What is it you're going to have challenges 29 different lines of business and those are management issues? I and I don't I don't know just like I disagree with my colleague to my right who as I have quite a bit over the last eight years What is it? but I don't feel you know there was a comment made when we talked about the judges and you know, that the idea that the cost of living here is less and the value and, you know, what have you. And I said, well, we want to recruit people from all around the state or all around the country. And the reason being is what that does is that elevates the pay for these individuals here, you know, because then they have to say, you know, they have to look at it from that perspective. So I really don't support this. I think it's, as I joke around in the past, it's a solution in search of a problem. But I think the success we pay for being a successful city is the fact that the cost for professional services goes up. I mean, I have a son that's an engineer. And he ended up as a software engineer because that's where the market took him. And he's been very successful as a software engineer who we paid for a petroleum engineer degree. But there's kind of a hybrid of which he works within that sector. And once again, it's because it's the market that drives what he gets paid and the service that his firm provides. And they do worldwide work. So once again, I think getting a whole bunch of people in a room and understanding that unless they're all in professional services and they understand the market, the other thing is is that The state of Texas doesn't support this type of initiative. And you could argue that engineering and architectural firms have a very strong lobby, but the state of Texas doesn't support this. And right now, when we're going through all these preemption bills and we're going to do something different than what the state of Texas provides, I just think it's not good public policy. Thank you.
One second. Oh.
Okay, and just for clarity, you are wanting to have council members choose or appoint a person. Is that correct? Right. And those people would then look at the policy and state law. recommend improvements to city processes and applicable state law. I guess I'm wondering what is the deficiency that you feel there exists?
Thank you. So the outline was to have each Elected a point similar to the committee's we've done far-field Conservation plan all of those a point one and have someone from legal someone from engineer kind of help be the liaison and the objective is really to to come up with An evaluation of our policies and that's that's the whole bulk of things some of the conversation up here would certainly be included things like Who's scoring? What's the training we do or don't provide for those scoring? Where we may not drive the selection, what do we drive in the negotiation? Those types of things. I know that a lot of our action is driven by the state, but where can we look at our policies adhering to the state and encourage competitive bidding, encourage competitive pricing without disobeying the state policy?
Okay, thank you. Peter, we, I think we've heard, we are abiding by, this is very specific, right, this professional services. We're abiding by, we have to abide by state law and procedure and best practices.
And we are, as Sergio said, we are following at a minimum state law. And then in some of these cases, we have best practice protocols in place.
Unless you feel otherwise, I feel like this, number one, is very operational and we're policymakers. So this is more in your lane. I think it does cross over, but I think we have to be very careful. And to put... lay people in a room who are not familiar, I wouldn't think. I don't know, to me it's just a little bit, it could go the other way, where it could become, we create problems. To me, I think this is very operational. And I think, if anything, we are 50 days out, 5-0 out from an election. And I think by the time something like this is put together to review, it's really for the next council. So I don't know how this body is going to benefit, or I realize it's going to be for staff, but I guess... it really needs to start with you looking at what concerns any council members have with this operational process.
Right, since I've been here, we have done a review of our procurement processes and made improvements like the points for being local.
Right.
We developed the manual, the then purchasing director. So we've made adjustments along the way in the procedures. If council wants something different, that's another story, but. If we did do, if the council did do this, I would request that we have some type of, somebody that's gonna facilitate it or guide it and not one of us. Because it's pretty technical stuff and to make sure that the nine volunteers would be using their time efficiently. Probably need somebody to help them develop a process, but what are they gonna look at?
Well, right, and that's also...
Right.
Well, I think that's part of it, too, Peter, is what exactly are we looking for? I know, Councilman, you just...
It's somewhat of a, you know, we're all about, I always tell the organization that we can always improve our processes, and unless you look at them closely, it's hard to know if you're doing that, and that's why we support But wouldn't you do that internally? I've been big supporters of our audit team because they can come in and review a process. So this is somewhat similar to that. There could be some things that we find from a different perspective. But again, to make it meaningful, I think to make it most fruitful for those that are selected as volunteers, that there'd be some expert facilitator of sorts.
Why wouldn't we start with an audit then?
What's that?
Why wouldn't we start with an audit?
You could. You could put this on the audit work plan.
Thank you. Councilwoman Vaughn.
Well, I'm a little conflicted about it, and I wanted your opinion as well, too, because I understand what she's trying to do. I do. I think she wants the process to be better, and I get that, but I can't think of one person that I know that I would put on it because I think we need some really smart people on it. Not that I don't know smart people, but I'm just saying it's an individualized expertise on doing this, and I'm kind of The fact that we are towards the election, do we want to wait and move it towards the next year? So what benefit? I mean, you have an opinion. Do you think it's something that needs to be done? I'm always worried about boards because sometimes we get these boards together and we don't even use them. And then we have to use staff time on these boards and you would have to have staff on it.
Right, so as I've said, Councilwoman, we have self-evaluated our processes and we've reported to Council, and that has made improvements in how we address procurement.
Is that a yes or no? Do you think you need them or you don't?
I think if the Council wants further review,
Oh, no, you're just kicking that can down the road.
I've already said that we have made processes based on our...
So you feel comfortable with what you've done, is what you're saying?
I do, and listening to Sergio here demonstrates that more, where we're following best practice in many cases.
Well, my concern has always been on this is the fairness of it, to make sure we're not using the same contractors over and over and over. Right. And I know we have to follow state law, so I'm not sure what all we can do since we have to follow state law.
Right.
Okay.
But if the council wants an independent review, I mean, you just need somebody to help facilitate it. Otherwise, the nine persons that might get involved, I don't know if it's going to be a good use of their time.
Audit's not a bad thing either. Right, we could start with that. Councilman Hernandez.
Okay, so our job here is budget policy and oversight, right? So the oversight component, this would be an oversight component of it. Right, what we're not talking about is not observing state law, it's just having an oversight of the process, okay? You know, and I can think of a put on that, put Bill Goldston on it, a retired engineer, part of, what's your organization called? I forget, ACEC, right? So, you know, where you have some involvement on, you know, I remember when I first ran for office, the The one, I remember a group, I won't mention their names, but there was a group that came to me and offered me, wrote me a check saying, look, we just want a fair shake. We just want a fair chance to be able to compete equally. Under this process, there's no way for me to guarantee that. There's just not a way. So, you know, it's not to say that they're doing bad, but, you know, sometimes you have your preferences in who you want to work with. And they, you know, that's... I see it, right? Especially when it is subjective on how you select people. So this is just looking at what could be the option. When I ask the questions about, well, how do you determine what the market rate is? Why don't we have a policy on that? Why don't we have some tracking of it? Something along those lines. It's just, this is just an oversight component of what we're talking about here. And there are good people in the community that can contribute that are now out of the system. I can think of maybe Larry Urban would be part of the process. He sold his company and is now out of it completely. I'm giving a suggestion to where there can be some suggestions to help to make the process fair. Every time I come up here, every time I got elected and I said it's not my place to pick winners and losers, but to ensure there's a fair playing field for everybody to compete and participate equally, fairly. So this is what this is about. It's not to point fingers at staff. It's not to say you're doing a bad job. It's just some oversight component of this body to see if there's something better we can do so we can guarantee that, you know, the half engineering or Pape Dawson or Hanson or... LNV, well, LAN, LNV's gone. Ardura, whoever that's participating in this gets a fair shake on all the architecture companies. I don't recall any land surveyors having any issues, but it's basically architects and engineers that we're dealing with. Anyway, that's my thought. Thank you.
And I think everybody agrees with that, but I would think an audit would be the way to go to begin that first step anyway. Councilman Scott.
Thank you, Mayor. I thought that was an impressive presentation. I think the issue is Are there protections in place regarding bias? And what I heard both of you talk about was the multiple layers of protections to try to remove any bias on the committee selections. I think until you can change state law to negotiate based on rates with consulting, then we're not really getting anywhere. I think if the council wants to direct staff to create a policy on rate checking or whatever you called it, then we ought to tell them to go do that. I mean, if that's something we want, then just go do it. This just feels like a lot of money and a lot of time when we're debating concerns about the budget. and I said this, actually, I've said it for years. We hire a city manager. If we don't like the job we're doing, we get a new city manager. And you, I think you've shown us that you guys would do a really good job in your, your selections. Um, and I haven't heard anything other than we were really mad at freezing Nichols five years ago. And I don't know, of course I wasn't around for that. Um, I do think sometimes when you hire, when we end up hiring the same consulting engineers, because they're really good and they, You know, they're really good, and they score well, and that's who we want to use at San Jacinto. We want to get the best people we can, and we'll use them twice if we think they're doing a good job, you know? So I also think that, as I said before, I think the real issue is growth. This community needs to grow economically so we can get more people coming into town and do more things. So I get a ramble, but I don't see the need to form a committee I see the need to direct you if we want specific things done and then move on down the road. Thank you.
Councilman Roy.
You know, I think that this really does scream the fact that if we are concerned, we have an audit team. And I think that looking in the past at some of the things that were brought up and the auditors looked at it's been an effective tool overall I mean I know that there's been some ups and downs in that department but if you take a look at things like the rental agencies and a lot of things that they did in terms of auditing the airports and auditing some of the city contracts and that. We learned a lot when we were able to improve processes and really have a system of checks and balances and then know what our areas of strengths and weaknesses are so that we could work on the things that we needed to improve and I think this fits right in the mold. I think that's the step and that's probably the most cost effective step right now is to run it through the audit process. That's my two cents, thank you.
Okay, we do have a motion and there is not a second. So, you did? Okay, I didn't hear that. Okay, so we can vote and this is to create a, yes, to create an ad hoc committee. Is there anyone in the audience that would like to make comment on item number 30? Okay.
Hello, mayor and council. I guess this is Julian Hernandez, D3. I guess this is where my ninth grade education comes into play. I've had the ability to work with a lot of engineering firms. And when I come to Corpus, I see a lot of fault. If you go to Castoris and SPID, you can see some big old concrete pillars that were supposed to hold up some light fixtures. just some stop signs, and they put the hangar in there, and it was pulled off because you couldn't see it because it was too close to you as you drove up to the intersection. There's a highway right here coming onto the bridge where there's a merge of, I don't know, five or six different merges happening within a quarter mile that creates a backup all the way to, you know, Mr. Hernandez pointed out a lot of things, stating that, you know, I heard these gentlemen talk about that they ask controlled questions. So what were the controlled questions when they hired Kiewit? And we talk about, what was the quote? You can save a lot of time and money, but how much money was spent on that? You know, if last week, I've never heard of Friesen Nichols, and I've been dealing with a lot of engineers for the past 20-some years. The first thing I heard last week was Black & Veatch. The difference between running with a small engineering firm versus a large engineering firm is that if they need to bounce something off another engineer... There's literally 100 engineers across, Burns and McDonald, Black and Beach. So when I heard them talking about the harbor desal project and whatever, that's something you can ask them because they can ask literally 50, 100 engineers at their disposal. We had Mr. Barrera opted for Friesen Nichols to engineer the last, I guess, well, one of the fire station firms. And what kind of background did Friesen-Nichols have in that? When we had another engineering firm that engineered all the rest of them, but yet they didn't have any background or anything like that in fire stations, but yet we're still giving the contracts to them? Yeah, I think it's a little skewed. And yeah, I agree with Paxton's recommendations and what Mr. Gill was talking about over here. The firms that I work with, yes, they have people working 24 hours a day. They can call clear across the world to another engineer and ask them questions where they can get turnovers real fast instead of, well, we only work Monday through Friday. Did you mention where's the benchmarks? There's no benchmarks. Thank you.
Thank you, sir. Anyone else? Come on.
Good afternoon. Welcome back, Madam Mayor.
Thank you.
My name is Robert Schultz. I reside in the extraterritorial jurisdiction on Loxley Drive in London. I'm a professional engineer, and I'm vice president at Hafiz & Associates here in downtown Corpus Christi. I'm here to speak to you today about Item 30, and I want to make it clear that the reason I'm speaking is The potential of hiring or getting, not hiring, but getting an ad hoc committee together, it has the potential to spiral. It has potential to spiral into other topics that have nothing to do with actually procurement. And I don't want that to happen. First and foremost, as you're aware, Chapter 2254, the Texas Local Government Code, specifically requires qualification-based procurement. We've heard this. Any contract, it specifically states this, any contract that is not in compliance with that code must be considered void. I'd like to tell you a true story that resonates with me and should resonate with everyone here. On March 18th, 1937, in New London, Texas, not affiliated with this London, it's a West Texas school, a school exploded from a natural gas incident. odorless green gas accumulated underneath the building due to a faulty connection to a gas main. The gas main was a residue line, improperly tapped and unmetered, all so that the school district could save a few dollars on a gas bill every year. They didn't have to pay for this because they illegally tapped into that line. The American Society of Civil Engineers Texas section website states that the school would save $2.65 per year on gas. That equates to $61.45 today in 2026 dollars. I did the math. Nearly 300 students and teachers lost their lives that day at the price of $6.41. I'm sorry, $61.45. because of a lack of oversight in regulation and construction processes and practices. Immediately after this explosion, the Engineering Registration Act, now called the Texas Engineering Practice Act, was signed into law on May 28, 1937.
Engineers are not professionals.
I mean, we are professionals. We're not a commodity. And I think that if any of you were diagnosed with stage three colon cancer, you're not gonna go down to the corner clinic. You're gonna go to a specialized professional doctor in cancer, probably MD Anderson, and you're gonna pay. I'm not saying, thank you.
Thank you, Mr. Schultz. Anyone else? Okay, we'll close public comment. We have a motion and a second. Councilwoman Vaughn?
I understand what you're trying to do, and I think it's a good idea, Councilwoman Paxson. But for me, I just think it's so late in this term, and I'm concerned that you have a shortage of staff. You do. You do. And to put any more on them, I don't see that we can do that. And I'm concerned that we are stepping over our boundaries, and there comes a point where you have to trust the staff. Even though I have questions, I do have questions, but I'll ask them. and hopefully I'll get the right answers. But I don't feel comfortable doing it. I just don't. I think her intent is good, but I just think at this time, because it's so late before election, and I really do believe the audit department should do it, and I think what needs to happen is we need to get the audit department in check and let them start doing their job. I don't know what's going on up there and how many are left, but I think that needs to be a priority first. Thank you.
Thank you, Councilwoman. Okay, please submit your vote. Okay, the motion fails, 7-2. Okay, our last item, Peter, we're going to have item 31, which is a city annual audit plan update.
Right, we do have some audit staff here, yeah. We're going to that we're going to go back to budget right mayor, we still have to.
We're going to actually have not yet sorry yes we're going back to.
Good afternoon mayor city council members, I'm Joseph Lopez senior auditor for the office of the city audit permit. I'm going to present the audit plan and project updates. The office is currently developing the 2027 audit plan, and we have currently eight carryover audits and four follow-ups planned. Of the carryover, they are the Greenwood process upgrade audit, the city... Can you update the slide? Sorry about that.
No problem.
Of the 8 carryover we have the Greenwood process upgrade audit the citywide wastewater. The solid waste holler system service charge remittance the EPA consent decree. The tourism public improvement district. The downtown management district. The water Department asset management and the procurement proposal PMP water Department asset management. Of the four follow-ups we have planned, we have the human resources, employee, beneficiary, verification, recruiting and pre-boarding, the economic development, finance at American Bank, now Hilliard Center, and then the Walden Road follow-up. The completed audits we just presented at the audit committee, we have the OSO construction contract, the human resources recruiting and pre-boarding, and the fire station number eight, which is currently in the signature phase. And the audits in progress, we have the development services permits and licensing, which is in the planning risk assessment phase, and the finance procurement card expenses and spending follow-up, which is in the data collection and assessment phase. The fraud, waste, and abuse allegations, we currently have three fraud allegations in progress, three abuse cases, and we've closed 11 total. That's the end of the update.
Okay.
Thank you. Councilwoman Paxson.
Thank you for presenting this. I think it was conversation that we've heard a lot from the diocese. We'd like to know kind of what the audit department's been working on. I know we get privileged to that, serving on that committee. Did you have in your slides at all the audit plan that we see in the committee?
Not the actual audit plan, but we do have the carryovers and follow-ups listed here.
Okay. Okay, could you go to that, the next line? I'm sorry, we just didn't have it in our packets either. And so the engineering and the human resource is complete, but we're still in signature for the fire station. Yes, ma'am.
Okay, thank you. Councilman Royne.
Thank you for the presentation. Can you do me a favor and just, um, put together an org chart? I would just like to see, um, cause I'm not on that committee anymore. I would just kind of like to see who's in the audit department, who's doing what and how that, and, and how many staff you have now.
Yes, sir. Uh, uh, right now we have, uh, interim city auditor who just resigned uh a senior auditor who just resigned and right now it's currently uh tiffany who's an audit associate samantha who is an auditor and then i'm the senior auditor right now all right yeah if you could just put me an org chart together that's going to show the individuals if it's vacant it's vacant
If it's filled, it's filled, just so that I can get a good visual. Yes, sir. And then maybe share that with all the council members. No problem. Thank you.
Councilman Campos. Thank you. Thank you for that suggestion. I, too, agree. Obviously, the audit department is in dire straits because you don't have an auditor that would be about us, so I don't know how soon we would be able to hire an auditor since, again, we're not gonna be here long, but I know it's important that we do that. So with the three people that are remaining and the, I don't have the scheduled plan that you have, are you gonna be able to fulfill what you have with the three people remaining?
It's gonna be difficult, I could say that. But I mean, we are working diligently and we are completing projects in a timely manner. So I believe that we'll be able to at least move forward with the audit plan.
Okay, and what would be the, I mean, is it possible that you could hire temporary workers to help in your department?
I believe so, yes. We do have the capability to hire a temporary auditor and also an intern.
So you do have the capability?
Yes, ma'am.
Okay.
And then also to fill the vacant positions.
Okay. And you know that we know that we just had the... You did the audit on the onboarding for human resources, which was pretty damaging for me when I heard that. I'm still working on getting it on agenda for hopefully next week, but... How would that work if their pre-boarding is not sufficient? I mean, we want to hire qualified people, but how do we do that when the HR department is not able or has not been able to, I think, do their job? So what would you suggest? I mean, do you have people that you work with that you could recommend? Since we don't do the hiring, right? I mean, we can't. Do you have people that you could work with or suggest or recommend?
We would have to start quickly in proceeding with that process. I do believe HR is taking steps to amend their processes to be more efficient, but we would have to start quickly.
And who would be the one to evaluate that? Would that be Peter? Would that be you? Who? Who would determine that these individuals would qualify for your department?
Well, we do have very experienced members currently who are able to assess their skills, and then also we could work with Peter in conjunction to facilitate that.
Yeah, Councilwoman, there's written minimum qualifications that pretty much an AI computer could figure out, do you meet them or not? And then applications are referred to the hiring department in this case.
Okay, well, only because I've heard Councilman Barrera state or show me a little bit about how some of the recommendations that he has received, I do not have privy to that. As far as possible auditors that we could look at at their application, I have not seen it.
I haven't either. That's the council's hiring, not the city manager's. The auditor, the council hires the auditor. I don't get involved at all.
He is the chairman, and I don't know at what point does he share that information. You'd have to ask him.
He's right by you.
If I may, really quick, just on the city auditor hiring. So Section 12 1⁄2, city council policy, the hiring of city auditors is up to the city auditor, right? Right. So that's who manages that. We do have minimum qualifications. HR does review that. But ultimately, the city hires that. Yeah. Those positions.
Right, but I think at one point there was a statement made that the qualifications had been changed or had, yeah, I guess had been changed.
No, they haven't been changed.
Okay, so we want to make sure that we hire someone that has actual municipality experience.
That's on there.
Okay.
Councilwoman Vaughn. Well, this is a real concern. It's not on you, but... It sounds like it's in a mess, and I'm just wondering, Roland, is this your fault since you're the chairman and you're running them off?
It's all my fault. I know. I know. My wife tells me that all the time.
I'm just kidding. But there is no way that if you've got—I was on the same line as you, Everett. I wanted to have a chart because I was on the audit committee. I've never seen it like this. and you guys only have three people in there. Yes, ma'am. And there's a reason people are resigning, and I'd like to know why they keep resigning. There's a reason for that, and that should be a flag for us up here. We need to find out what is going on there because something is obviously going on. And whenever I wanted an audit report, I actually wanted a complete audit report like you did, engineer an OSO contract. I know before that's what we did. We got to see what the audit came out as, and I think as a council we should see that so we can see it. if the work's being done correctly and what is actually going on in the city. But I have a real concern, and I think that that's gonna have to be addressed, and I guess, Roland, you're the head of that one, but we need to find out why we're having so many people resign. And to me, y'all have a, you're overloaded. There's no way, you've got eight carryover projects. You went down that list, I don't have a clue how you're gonna get that done.
Yes, ma'am.
Thank you. Councilman Barrera.
First off, I wanna commend Joseph Lopez, What is it? Tiffany Cheshire, right? And man, somehow or another, Samantha. It's just Chapa, right?
Yeah? Okay. And for the tremendous job which they're doing to fill in all the gaps. One of the things I want to commend Joseph for, he is the stellar leader of educating himself. What is it? He leads, which he didn't include in his report, he leads with, it's not CE, in my industry it's CE, what is it called?
CPE, Continuing Professional Education.
Yes, of which he has by far exceeded that while still maintaining his workload. In addition, Several of the audits that we've had in the past, even though it has the auditor's signature, he's probably been the one, the senior auditor, him and Samantha, that have been the ones that have really been put forth all that effort. So typically, whenever we have some of our meetings, they're either referred to Joseph or Samantha. So I want to commend them for the fine effort of which they have. Joseph, how long have you been with us?
A little over four years.
Over four years. And Samantha, do we know?
about three around.
Three, and then Tiffany, you just came with us about a year ago, and I mean, she's also been amazing, and she provided excellent support staff for anybody that's been in the position and dealing with, she typically is the one who probably has to deal with all the other departments to be able to procure their information. So number one, I want to say what a tremendous job the three of you are doing. I would argue that perhaps, I can't explain why individuals leave, but I think now we're probably holding individuals to a higher standard of which, you know, we, we want to, we want to reward those that are doing the job. So I want to commend you for that. The other thing I want to say is that, and Michael, I'll need your help on this. So the, the process for recruiting an auditor, it has a committee of which the city manager sits on along with the audit chair and who else?
So let me give you a quick update on that. So we're following the same process as we did last time. Rebecca's on our way to lay it out for you. But the position closed today or yesterday. We have a total of 18 applicants with 10 being qualified. So the next step is we'll move on with the process. And there is an interview panel. I have to check to see who's on that panel.
I believe it's two individuals from the audit committee. I mean, last time it was... Has it right here.
He'll read it off to you pursuant to Corpus Christi code section twelve and a half dash eight in reference to the city ultra vacancy and ad-hoc nominating committee consistent of the Council audit committee and the city manager or designee shall recommend to the City Council candidates for city auditor Okay say that again, I'm sorry
You talk too quickly for me, all right?
Understood. An ad hoc nominating committee consisting of the council audit committee and the city manager or designee shall recommend to the city council candidates for city auditor.
Okay, thank you, thank you. And so the last correspondence I got was September 1st, and that showed that we had, and you said we had 18 applicants. And at the time, three were from Texas. We even had one from Canada. Now, at the time, and so we have 10 that have been qualified, I guess. At the time, it was only eight. So we're just following through the process. We're using the same firm that we used in the last recruitment. And so what is it? I'm confident with their skill set. And then we've also made a pay adjustment. There was a challenge. The prior audit committee felt that they could get a better deal by, is Robert Schultz here, by negotiating a better price than other than qualifications? And so what is it? I think what it is is that we brought the auditor to, We did the solicitation based on what the market requires. So we were able to get, you know, quite a large amount of respondents. So I'm enthusiastic about that process. What is it? Hopefully it can get done, you know, very soon so that way we can get them. But I know, once again, the staff that we have participating are highly committed. They're highly qualified. And they're the ones that honestly have been doing all the back office work. But we do need to get them some temporary support. I would advocate for that. There is room in the budget to be able to do so. And what is it? And then the other individual that we had, how long did she last? How long was she with us? For about seven months. About seven months. And she spent about three of that getting herself up to speed with all the education. So what is it? So anyway, those are my comments for now. But once again, keep up the good work, brother. We appreciate you. Thank you, sir.
Councilman Hernandez.
Okay, we changed the process and updated the ordinance 12 1⁄2. It used to be three council members, a member of the community, a qualified member of the community, and the city manager. However, it was very difficult to find a qualified person that had internal audit experience from the community without them being a candidate, right? So that's why it changed to the audit committee plus the city manager. It is disappointing. Are we still doing construction audits with Talon? Yes, sir. Okay. And that hasn't come to council here recently. The... It is disappointing that we did lose so many people so quickly, that the environment there was not very conducive to productive work. It's unfortunate. Hopefully we'll have somebody with internal audit experience that is familiar with Yellow Book, Red Book, or whatever the one we're using now. I'm a little concerned that Councilman Gompos had brought up the audit on the Talent Acquisition Division. Can you give a little bit of insight on that?
Yes, sir. We currently reviewed the internal controls and processes of viewing recruiting KPIs, how they document different phases of the interview process, the offer, and there was no readily available metrics to identify.
Okay, well I won't get too much into it because it's probably going to be something we bring to council next week as an agenda item. You know, this is hard for me because I was on the audit committee for four years, and I hate to see it in this situation. But anyway, thank you. I appreciate the work you're doing. Thank you.
Councilwoman Vaughn. Just a quick question. When you are auditing a department in the city, are you having cooperation within those departments to get you the things that you need?
Yes, ma'am, for the most part, yes.
For the most part? Normally?
Normally.
Okay. Just making sure, because I mean, that could, that could hamper you as well.
Yes, ma'am.
Okay. Thank you. Councilwoman Paxson. Thank you.
Um, I said we're sitting on the committee this past two years. I know this committee has been under tremendous public fire. I think that didn't help the situation, especially with, I think that was a driving force behind one of our law department losses. Um, I recall that we have, on a couple of occasions, had to escalate items to this dais to get support for the work you guys have done. I know it's been a difficult almost two years, and that has included asking for support on these things, which we were happy to bring it here and provide, and the scrutiny and things like that. My heart and sympathies go to the department and I appreciate the work that you guys have put into all of this and thank you for providing a report today. And then I think we have, thank you Joseph very much, I think we have HR here to answer some questions about the process.
Rebecca Castilla, HR Director. So when I started the process in the absence of Mr. Holland leaving, I went back to go look at what we had previously done when we actually hired Mr. Holland. So I went back to all the emails and communication. And at that time, it was Councilman Hernandez that was the chair for the committee. And so I saw that all email communication, including the job description, resumes, well, no resumes have been submitted at this time, just how many applicants was just directly to Councilman Hernandez for the first 30 to 45 days. And then after that, once I do receive, because when I looked again at the process, once we did receive the applications or the resumes, it was then submitted to the chair. And then the chair would then share it with the rest of the committee. And that's how the selection would come in.
So if you had to put us in four bullet points, so it goes, applications come in through the organization or through the chair.
It will come to me first cause I'm the middle person. So once it comes to me, then I would forward that information over to the chair from the chair, the chair within actually share it with the rest of the committee. And at that time I actually will include the city manager right now. It's just been the deputy city manager, but once we get to that stage, I then will include the city manager. me looking through because there's unfortunately there's not an sop in place so i had to go back and look at what was previously done when we were hiring mr holland or the city otter at that time and then i had to i basically just followed that outline is what i'm actually currently doing today okay so applications come in through the normal hiring platform and well through the so we're using a third party so our communications through the third party
and then they filter them to HR. HR passes them to the audit committee chair. They filter, cherry pick, pass that to the committee. The committee reviews and then that selection is sent to council?
Well, not yet. So it's first just with the committee. The committee then selects, let's say there's 10 people. I will submit all 10 and the committee selects five. And then those five will then start the interview process. It doesn't get to the full city council until the committee actually interviews the selected candidates for the position.
So when you receive the applicants from the talent acquisition group, do you forward all of them or do they pass through a filter again at HR?
So I don't get them through the TA team because I'm working directly with the consultant. The consultant. So I then send them all. I don't select them. I literally, I have not received any because it just actually closed. I have not received any applicants or resumes at this time. So what are the 10 or eight that are? So I get weekly updates. I get weekly updates of how many candidates have applied for the position. So I did get a late update yesterday and it basically was the position was closing. I should actually have another update tomorrow because he was hopefully anticipating that we'd have additional applications.
So that goes from the consultant that we hired for talent. Then it goes to HR. You're getting updates throughout the process. So do you filter what he passes to you, he or she, or you send everything you've gotten to the chair?
So I haven't received anything when you receive them. When I receive, I will actually submit all to the community chair.
All of them to the chair. And then the chair takes them to committee. Yes. When do they get put before this group that we heard earlier that's comprised of the audit department, city manager? At what point in this? It's the audit committee. It's the audit committee.
Yeah, the audit committee. The last time the chair was kind of led the effort. So there was scheduled meetings where we all attended and may have been like handed out all the resumes at that point, if I recall correctly. So it's really through, it's a council appointment here, so the new rules, the new procedures is the audit committee and the audit chair is in charge of convening meetings to talk about process, to review the applicants. Nothing, Rebecca said she's sending me information, but I don't really get anything.
Not at this moment in time, it will be once I send it.
I don't get anything outside of meeting with the committee.
so you're sending updates to the deputy cm because the cm's office is going to come in at the next two checkpoints yes it's just really it's letting him know just the status update in case he was supposed to get asked by any of the city council members deputy city managers aware of how many applications do we have and so forth so it's just letting him be aware um from that perspective so is our chapter 12 and a half where audit
essentially answers to the council audit, the auditor under them as the department. Is that uncommon to cities? Because what you said was we don't have an SOP as far as how we do this onboarding. If we're not the only city doing this, how do we have no SOP?
It's something that I am creating as I go through this stuff.
If I may, it's just one position, so it's not uncommon for the kind of one-offs not to have an SOP, but the statutory framework in the ordinance is kind of fairly straightforward. You know, you gather candidates, the audit committee with the city manager reviews them and they make a recommendation of potential candidates to the city council for their evaluation and ultimately appointment or selection.
But we're still probably six to eight, if not more, weeks from hiring because before the next audit committee, and then it has to get whittled down, and then it has to go to council, and then an offer added. So we're still a couple of months out from filling this role.
Yes, the position was posted for 30 days.
Where does, hear me out here, you've answered a lot of questions on the standard operating procedures for filling that role, but in interim, to provide support to the department.
So I would need direction from the committee, because I actually did speak to Councilman Barretta giving that Amir had put his notice in that we would need direction from the committee if they would want HR to assist in getting a consultant. But it would still say the process. So if you said yes, the committee said we want you to be able to work with an outside firm to be able to provide candidates that you guys can select and be the consultant or interim during that time, it would still work in that process, but I would need directive from the committee. So... And I have not received that, so we have not done anything.
If we're talking about a temporary job fill, 90 days maybe, I can't imagine that going over an executive team procurement approval policy. Is there no way that? there's a service that we can temporarily hire that doesn't take the 90 days to fill the 90 days.
So we do have that, but I still have to get directive from the, from the, from the committee. I can't just go and do that because it's a, it's a, it's a city of, it's a council appointed position. So even if it's a consulting position, I still would need directive from the audit committee that that's what you're, you're wanting the HR to then go. Cause we do have actually, consultants that we can actually do and not do a 90-day and so forth. But I still need to have that directive.
And I might want to add, we only had the termination of the interim order last week. And that was Wednesday or Tuesday, and then we met Wednesday. And we had the holidays, so. But if I may, I'm sorry. Sorry to interrupt.
No, you're fine. I just know we lost, George, six months ago, we lost another auditor over a month ago. Now we've just lost a third. So to me, even though we got the latest resignation a week ago, we're facing some serious deficits in the department. So we're holding them to the standard of completing their audits, but we're not giving them the tools to help support that department. And it was already a very tight turnaround to lose an auditor in less than 30 days to try to pick up that workload amongst the rest of the department. So that's my issue here is getting stuck in a position where it takes 90 days to hire someone for 90 days because our department's hollow. We're at a 50% retention. That's pretty substantial. So there's gotta be a solution that's faster than this 90-day process. There just has to be. We're not the first organization to lose an executive-level teammate and have to fill it interim. What if a finance director steps out? There's resources to turn to.
I understand that, ma'am, and I have to get directive from the committee in order for me to give my direction. Just like we did when Mr. Holling put his notice in, there was a committee that was set up, You guys gave us directive on what you wanted us to go do. We went to go follow that directive. For me, I would still need the same from the audit committee to have me go do what we need to do.
And have we set another date for that?
I have not received anything, ma'am.
Okay. I appreciate it. Thank you. Please don't mistake. This isn't directed at an individual. This is the feeling of the manifestation of a system flaw. This is not directed at an individual. But we have a hole here, and we have to fill it. Thank you.
Councilwoman Campos.
Thank you. And I agree with Councilman Paxson about that it's not on you. You are waiting for direction from our committee chair. And even though the vacancy has, I don't know, four months, five months, six months. It's three months. Three months, all right, three months. So... you know, I don't think there's been the urgency that we have needed for this department and now we're at like zero, you know, before we were, you know, maybe on stage three and now we're like in stage one and it happened so quickly. So again, what is it that, I mean, obviously our chairman, has his reasons for not moving as quickly as we could have or should have, but hopefully this will tell the rest of us that we need to do something. And as I was asking Joseph, can they, them three that are left, be capable of saying, you know what, can we hire these two, three people? Would they have the ability to do that or they still have to come to us? Can they say, we've got somebody, you know, three people that I feel are qualified. Let's see if we can get them in. Would they be able to do that then?
Councilwoman, only the city auditor or the interim city auditor has the authority to hire or fire within the city auditor's office. Outside of that, the council could hire an outside consultant to fill in the gap to say,
But any any higher and firing would need to come from either the appointed city auditor or the appointed interim city auditor So we as a council can hire an interim outside auditor right now if we get used to yes Okay Good to know Thank you Councilman Hernandez, okay
It was a tremendously difficult task to hire a city auditor because I had an interim city auditor that couldn't get qualified, and we didn't have a pay increase for her for five years because this is when I took over. So I was well below market in terms of what I was authorized to pay for them. The person I selected was already getting paid what the top of the... of the market what I was looking to pay for. So, you know, you have a much better situation now where you're within market for pay. You don't have to find an outside person to try and hire somebody. It's just the audit committee and the city manager. The only involvement the city manager should have is when the audit chair and the audit committee ask him to participate in the interview. Yes, sir. Now, you should be, I'm assuming you went with the headhunter that we set up last time because we didn't even have that last time.
Yes, sir, we had that set up already.
Okay, so we included that to be able to pay for that within that. So, I mean, all that groundwork should have been set up already. Yes, sir. You should have at least a blueprint for how to do it. The SOP should be the 12 1⁄2 ordinance on what you need to do to hire, and that specifically says who's on your hiring committee and how you do that. Really, this should be a little bit easier process than what I had to go through four years ago, because it took me a while, and then I had to figure out how to pay the person. I was just fortunate enough that the person we ended up hiring, his wife was already here and he was here anyway. So we got lucky, because I don't think we could have afforded to bring somebody. I actually made an offer to a guy from Seattle that was in charge of the auditing for an airport up there, and had a construction audit background. As a matter of fact, I would actually probably, if you can get somebody with construction auditing in their background, that would be phenomenal because the size of our CIP would kind of warrant that. That's why we ended up going out with Talon to get those construction audits, which we hadn't done in the past. We'd never done a construction audit. So there are some good things that we can do that are in place now that'll make this a lot easier for you guys. to go ahead and go forward with this. And I hope we find somebody pretty good. But we can't hire the senior auditors and the auditors without the city auditor being in place. So, you know, hopefully, please stay. Until we get a city auditor in place. Right. You should have a good process to go by. Thank you.
Councilman Bonita.
Let's see. Well, first off, anybody can pick up the phone and call me if they have any questions. I just want to leave that out there. And for the public that wants to know, 361-688-7111. Anybody can ask. Once again, 361-688-7111 for the four folks that are watching that are interested in the audit department. Yeah, please. Yeah, I'll tell you what, the Medicare people are calling me now. Anyway, so here was the process. Three months ago, we had a retirement. And so we quickly expedited the process of going through that process. We had to put together a job description. We put some tweaks to it. I think we improved upon it. What is it? And then that was put together with staff. And I think I might have made one amendment. They did an excellent job. And then what is it? And so we followed that process. And in the process, we had an interim who did hire some, and then we had another individual that was hired. So there was complete expectation that the interim was going to go ahead and fill some of those gaps. And however, just last week, they resigned to go somewhere else. So I understand the sense of urgency. What is it, and I would agree that perhaps There can be a discussion so that way we can utilize a consultant, whether it be our outside auditor that we have right now, you know, to be able to provide us with some resources, something that we could expedite very quickly. But once again, we go through the process of a holiday, you know, and a long council day, and then one day of which we had an audit committee meeting, and then Thursday and that. So I would say that it's just kind of come up. And once again, I want to commend now, there's been a higher level of consistency now with regard to the work product that the team has put out. And I want to commend Joseph again and Samantha and Tiffany with the level of professionalism that they bring to the organization. And we appreciate all the work you do. And we appreciate the interaction that you have with the employees. I think the three of you are... the team feels, the rest of the 3,500 employees feel very comfortable working with you and looking at ways that you can improve the organization. And I know you're open-minded to that as well. So I think, once again, we've dealt with some challenges. We're trying to address them and expedite them as quickly as possible. But when you have the full expectation of an interim trying to fill some gaps and then the interim resigns, then that puts us in a precarious situation. But once again, if somebody wants to call or offer a strategy or offer something that may have worked in the past, I'm very open minded and want to be pragmatic and we want to get the best person for the job. And I've always believed is that we have to pay them what the market requires so that way we're getting the best bang for our buck. All right, thank you very much.
Okay, Councilman Scott.
Hey, Joseph, thank you for what you're doing. Just wanted to make sure I didn't let that go. Thank you to you and your team. Just keep rolling as fast and hard as you can, and I think we're committed to try to find help as soon as we can. I just didn't want it to go without saying how much we appreciate you and the others that are with you here today and up in the department. Thanks.
Yes, sir. Thank you. Appreciate that.
Okay, thank you, Councilman. Okay, well, thank you for the update, the audit update. We appreciate you both being here. And, Peter, we're going to go ahead and go back to number four. Yes. Yes.
Yes, so we're going to our our budget director Amy Rodriguez is going to a presentation. We we already approved number 4, but number 4 has the overview of how we balance the budget last week. So we'll talk about the amendments that have been added and what we recommended to reduce to afford those amendments. And then the only thing pending after that is the tax rate item number 7. As far as I know. Does that sound right, Rebecca?
Yes, that's right. We do need to reconsider item number four, though, for the council to start talking about it again. Since we've already voted on it, now to open the discussion again, we do need to approve a motion to reconsider. Yes, ma'am.
Would someone like to make a motion to reconsider?
And someone on the prevailing side.
Can we have a motion? Do we have a second? Second.
second motion second okay and then uh please vote we need six votes to reconsider please okay all in favor say aye aye any opposed say no the motion carries thank you okay thank you good afternoon mayor and city council amy rodriguez director of management and budget
So I will be reviewing the proposed budget presentation that we reviewed last week. Nothing in this presentation has been changed since then. And I do want to just remind everyone that the assumed tax rate for this budget is the same tax rate that we've had for the last three fiscal years. This would be the fourth fiscal year at this tax rate. So the fiscal year 27 budget is balanced, and this budget is focused on police and fire, streets, parks, long-term water security, and wastewater management. And this budget is consistent with city council and community priorities. This is a reminder of our overall FY27 proposed budget. This is reflective of the proposed budget that was provided to all of you on July 28th this year. And this has been the budget that we've met on multiple times with workshops as well as community input sessions. What we'll go through in the remaining slides are changes to that proposed budget. So one of the changes that is in this budget before you today is a reduction to our general fund revenues. That is a result of the TERS boards approving a lower transfer to the general fund for their admin service charge. And so that was almost $200,000 less revenue to the general fund. And then we're also removing the revenue for the code compliance citation fee. After further review, that was not a fee that we could add to our budget. for general fund expenditures. As many of you know, there was a lot of work done to get to this point. And so through feedback, we were able to add $450,000 for grass and weed abatements, and we added $200,000 for homelessness services. To fund that, as well as the changes in our revenues, we had to make some additional cuts to our expenditures, and those are listed here as well. So we would be reducing one director of communications, that department would be consolidated with the intergovernmental relations department. We would reduce one public information officer in communications. We would reduce the communications specialist in the mayor's office. We would reduce one senior management analyst in the economic development department. That was one of the positions that was focused on TERS administration and type A and B administration. We would also be reducing our budget for membership dues and sponsorships. We are correcting, making two corrections to our operating budgets in the mayor's office and the police department. And then we have a reduction in the internal information technology, internal service allocation charge. And then because of the change in our revenues, when our general fund revenues decrease, we also decrease our transfer to the street maintenance fund and the residential street reconstruction fund. Street maintenance fund is at 6% of general fund revenues, and the residential street fund is at 1% of general fund revenues. So to amend the street maintenance fund, we'll have to reduce that transfer from the general fund by $15,180. And the residential street reconstruction fund, that transfer is being reduced by $2,532. And then these are the changes that were approved by the TERS II board on August 24th. So we will be reducing our PACRE channel maintenance by $65,932, reducing our transfer to CIP by $630,706, and then again reducing that transfer to the general fund. These are the changes that were approved by the TURS III board on August 24th. We reduced the DMD contract by $247,714. Reduced DMD right-of-way for $12,325. Reduced park maintenance for $12,325. Reduced bike patrol, $30,000. Reduced DMD levy match, $89,397. And then reduced the transfer to general fund. These are the changes to the TERS IV budget that was approved by the board on August 24th. We have an increase to a one-time special project for North Beach Historic Plaza, an increase for a TERS grant match, and then the decrease transfer to general fund. We have amended the Type B budget to reduce the $400,000 that was allocated for the Homewood Suites project. That is a project that was 400,000 a year over multiple years and so the amount that was included for FY27 was 400,000 and this would be coming out of the FY27 budget. And then we have added an appropriation for dangerous structure demolition that would be funded out of the corpus Christi housing and finance corporation fund specifically on residential properties and low to moderate income areas of the city. For the information technology fund, we would be reducing the transfer in from the general fund. And then we have included a turnover target for information technology to actually account for some of their vacancy savings. And that concludes my presentation.
Okay, so Peter, do you want to go over? So it's kind of simple and clear. What are the options?
Right, so we already reduced the budget beginning actually mid-year to account for what we saw as a shortfall. So there's been eliminations in the current year budget to get ready for the 27 budget. To be able to do things like mowing vacant lots, we recommended a new fee, actually three different options amongst the council. And the council pretty much rejected that. So we spent, this was about a week ago, we spent a good part of that week and weekend developing that list that Amy went over. to be able to fund the vacant lot cleanup and the homelessness services. So if we wanna go back to the, if we wanna go to the no new revenue tax rate, we need 700,000?
It's a total of 818,000, but 740,000 in the general fund.
Okay if we want to go back to that and we have to cut the budget so that the options that we would recommend first of all we're not recommending the no new revenue rate were recommending the 59 cents the current rate. But if the council did want to go there we recommend eliminating those things that we added. Back to the budget like knowing and the senior I mean the homelessness services and that we still would have to eliminate one parks maintenance crew yeah.
And I would just like to remind everyone, I know we've discussed this before, but this tax rate is flat. This is not an increase to the tax rate. And in fact, our overall property tax revenue is lower than it was last year because we did experience a 1.5% decrease in net taxable value.
Right. And that comes from primarily from more property tax relief that the state mandated upon cities. So this year, $125,000 is exempt from business personal property tax. And we lost $3 million in revenue because of that exemption. Over the past, this will be the third year that we've reduced the budget, so we've eliminated 22 million in pretty structural recurring reductions in the general fund. And so now, and we talked about this through the workshops, when we cut more out of the budget, it's gonna be noticeable to the community. So things like mowing parks, maintaining parks bathrooms, maintaining playground equipment, libraries, library hours have become very noticeable, code compliance, animal care, I'm not even talking about the most important ones of police and fire and street. So we just caution that at some point too much property tax relief becomes apparent amongst the community that want services.
Okay.
Anybody have any questions? Councilman Pond. So when we started out this, I remember you saying we were 1.9 million short at the beginning. So you found that.
Well, we made reductions, correct? Yeah.
Yeah. Okay, so, and our budget has not gone up since last year with what you've done. It was 1.4 then, it's 1.4 now, so we've not raised it.
That's correct.
So what you're telling us, and we have to approve the budget today. We can't leave here without approving the budget. We have to do that.
Right.
And I hate it when we wait until the last minute, but hey, we've had workshops, we've done it, we all knew what it was going to be.
Right.
So if they don't, If we don't approve the budget, or if we approve it, and we don't go with an assumed tax rate, we're going to have to reduce the things that we requested, like the abatements, the homelessness. So I think everybody has to understand that. If we're going to do those things, there's a price to it. And I'm just glad we're not going up above the 1.4.
Yeah, that's a flat budget.
Yeah, yeah, so... I don't know. I just think everybody needs to think about that. And I know it's political season, and you don't want to have anything on your thing saying you voted for an increase, you voted for that, you voted for this, you voted for the budget. That is not the way you run things. You're up here to make hard decisions, whether we like them or not. So can we make a motion to reconsider the budget, to go ahead and make a motion to approve the budget? To approve. I'm going to make that motion.
Second.
Okay, we have a motion and a second. Councilman, I know we're coming. Councilman, go.
Okay, so my biggest issue with the budget, and I voted against the budget, was the cost of living adjustment, the COLA versus the merit pay. I will change my vote on the budget if we change that as an amendment, and with that, I would change on the tax rate. but it has to be on the merit pay. I'm going to hold the line there.
We can do that, Councilman. Just one thing to consider. Many of you talked to me about the retired firefighters, insurance going up. The same is true for these active employees, and so the reason for the COLA...
Okay, but we're not talking about the market adjustment.
You're still doing the market adjustment. No, but I've got to finish my statement. So everybody's insurance is going up, all active employees on October 1st, and so part of the justification for COLA immediately was that the cost for health care is going up by payroll deductions beginning October 1. I thought that's what you did the market adjustment for. That's the COLA. Well, you can, but when health care goes up October 1 and there's no market adjustment until January 1, then there's a gap. So you're doing the market adjustment in January, not... Yeah, typically it takes us until January because we have to do the evaluations that begin about now and go through October, November, and then the awards are made for January. So one year we did like a 1%... We could do a 1% COLA. The other issue is there's less money this year for either market or COLA. We purposely budgeted less to stay within the budget. So to have a meaningful market adjustment, you usually have like 4% to 5% set aside. We just have 3%. I'm just telling you our rationale. Okay, well, that's my deal. Yeah. I mean, we could do a 1% COLA for all employees and then a 2% market adjustment. That's what we did last year.
Merit.
Sorry, merit, yeah, performance pay. We have 3% set aside, so you could do 1% COLA to help offset rising health care costs, and then the remaining 2% we could do as a performance pay on January 1. We can do that.
Well, I'm good with that. I just don't want to get away from...
I know. I'm the one that brought him to the organization, Councilman, so I know. I know. We discussed it. Yeah. And one of the two reasons, as I mentioned, the driving factors are health care is going to go up pretty significantly for all employees on October 1.
Put it in writing what you want to have done for that, for the budget. We'll have to go back and revisit the budget before voting on this tax rate.
Put it together. I'm telling you what it is right now.
What would you have it in? I want to vote.
So it would be October 1, all employees would be eligible for a 1% COLA. Then we would do our performance appraisal system, and then the 2% remaining would be in the money identified.
Whatever that is, I wanted something that we vote on to give to you.
Okay.
So if I may.
You want a motion? Okay, we can write you a motion. Okay, thank you.
Okay, what?
So the amount of money that we have for cost of living is 3%, right? We were recommending a 3% COLA for all employees on October 1, primarily because of increasing healthcare costs that take effect October 1. Our performance base pay generally takes effect January one because we have to do the evaluations in the fall. So our compromise is we'll do of that 3%, 1% COLA on October one to help at least offset some of the increases in healthcare. And then the 2% remaining would be performance base and that would be awarded in January based on evaluations that we do in the fall. The employee's evaluations are in the fiscal year, and so you have to get through the fiscal year. And then from October, November, we do the evaluations depending on the score or the performance. It tells you if you get 0% increase or I don't know what the max would be.
Yeah, and remind me, and I don't know, I was trying to frame my question and I should have continued to listen. So how much is the increase of the health plan to the employees?
It's 15%.
Those are 15% increase across the board. How many of those, I mean, can you, and I know, just spitballing here, of the 3,500 belly buttons that we have, how many of them have dependent coverage? About 20%. 20%? And what's the contribution amount that the employee has to make for dependent coverage? I know it varies. Just on the HSA.
Just spitballing, the premiums are about, I think, currently about $220 per check, and it'll go up 15%. They're going to go up 15%? 15%.
So then we're going to increase the premiums by about an additional $35. Right around there. $35 a month, so $35. So it's $360, so roughly $450 a year, right? So if an employee makes, I don't know, a blue-collar employee is making probably $15 an hour. They're making $30,000 a year. And so now we're going to give them a 3% COLA adjustment. So they're going to get $900, right? Am I math correct?
Well, maybe if I we did some assessment. So if we do a three percent call for all city employees and you account for the 15 percent increase in premiums, all employees will see some sort of increase in their paycheck. So that's the best way to put it.
But the thing I'm more concerned with is that obviously you can afford, you know, Peter and the fifth floor and all the executives can afford. What is it? The 15 percent increase. but I'm talking about the blue collar employees. I'm talking about the people in landscaping, the people in asset management.
Yeah, they're part of that assessment.
So, see, that's the thing I'm saying. So you get somebody that may be making $30,000, $40,000 a year, and if they have family coverage, now half of their COLA increase is going to increase. And I think the thing is, is that... And, you know, I've been intimately aware of what's been going on in the health plan, and I know we've had a... Not necessarily... We've had an increase in the number of claims. It hasn't been this year that's affected us with big claims. We've just had an increase. I mean, we've had an increase of about 300% of claims falling below the spec, which is 300,000 or 350. So that's just created that liability for us that we'll be able to run out. But the thing is, is that I always talk about access to health care. How we recruit employees is providing them with, The purpose of the benefits that we provide is to recruit and retain good employees. And so I just think that, you know, once again, I'm going to say it again, it's a solution in search of a problem. Because here we have a situation where we're trying to manage the 4,000 employees, the 3,500 employees that we have, and we want to provide them with good benefits of which we have. We continue to do that. But the thing that I'm worried about is the blue-collar employees, where basically half of their increase is going to be. Now, the other thing is, For those that do not get the COLA, then they're already going to get, and those that have family coverage are pretty much going to get, what did I calculate, 450 bucks, yeah, or 900? About 900, I think you said. Yeah, so they're going to get that reduction in pay to be able to maintain to insure their families. So I think, I understand the methodology, and I think there needs to be some, some way to do that, that it needs to be merit increased. However, I do agree with that because I believe I worship the idol of capitalism. And so that being said, I think that there needs to be a competitive environment. But because of all these cuts that we're making, and then if we don't approve the three cents, then we're going to put the next council and the next several years in jeopardy, where now you're going to have a hard time recruiting and retaining good employees. And I think those are the decisions that we're making. So I wouldn't agree with that. I don't think that I would disagree with that, especially as somebody that deals with those type of compensatory issues. And I think it's short-sighted for us to try and do that. I think it's something we can do in the future. So I wouldn't support that. Now, I don't like the fact that I almost feel like it's extortion to be able to do that, to be able to approve the budget. I mean, we need to take care of our employees. And once again, for those blue collar employees that don't get the 3%, then they're gonna have to feel the full brunt. And those employees are absorbing because of that 300% increase that we have in large claims, which mind you, the last I saw was 65, somewhere in that area. So what happens now is to protect those 65 employees, the 3,500 employees that we have are having to absorb that additional cost. And that's unfortunate. And then now we're going to cut their pay even more. I mean, Jesus, that's not the way, that's not the way business should be run. And it's not the way I disagree with having that type of mentality, you know? So, um, I, I don't agree with that amendment.
Councilman Roy.
Peter, um, The only thing I want to say is I just want to remind everybody as we're talking about this, number one, retirees, they don't get a cost of living adjustment, right?
Actually, depending on what plan they're in, they do.
For the fire?
Yeah, we increased it last year for them. The firefighter COLA. For retirees?
No, not for retirees.
I think the fire, we increased it last year. Huh? Well, that's a good answer.
Anyway, I just want to make sure, just to remind everybody, we're going to put this on the agenda and talk about it in detail next week. That's right. And regardless of what we decide to do today, I just don't want to forego that conversation.
Why not? And I just use that as an example because I know it's fresh in some council members' minds that health care is going up for everybody.
Yes. Especially our active employees.
a given across the board in the united states health care and general inflation and inflation is is real and it's happening now so that's why we're thinking october one makes sense for immediate relief no all right that's all i have okay um so we do have a motion in a second yeah for item number four okay councilwoman pexton
How many employees are below the mean income level?
I don't have that answer for you, but I can see if our HR representative can answer that. We don't have that.
Do we have anybody who knows?
I don't know if we have that right here. We would have to follow up.
I'm a huge proponent for merit and increases. However, when we're talking cost of living, we have a huge portion of our staff that every dollar counts. I think that there's, I don't think that's 100%. I think we have some disparity between tiers, but we have huge portions of staff. This is an organization of 4,000 people that they really need that. If you let that inflation and those healthcare costs increase and now their paychecks are decreasing because of that difference, what incentivizes them to stay with our organization? Are we increasing those wages? No. How are we supposed to get individuals to fill that back up? So that's a problem. In the past, I've been with an organization that did kind of a scale. They did like zero increase for directors and above, 1% COLA for managers and exempt, and then 3% for everybody hourly or line level. Have we ever evaluated something like that?
It causes compression in the organization. I don't know if HR wants to.
I'm sorry, I didn't catch that.
It causes compression in the organization where eventually the frontline staff person could be making more than their supervisor when you start doing those types of things.
I don't think that would be like a standard application. I'm just talking in years of...
I know even a little bit can have traumatic increases, especially like us where we're still trying to get everybody at an average market rate. We have to adjust our, like animal care, we looked at the entire operation and tried to bring them all up. And so that takes money. Where's HR? Okay, they can better answer it, but that's just...
I'm thinking with the disparities we have between pay codes, it would be quite a few years of that before we had that problem.
I think I needed to know specifically what to answer in terms of you want to tier the COLA?
My question is whether we have evaluated a tiered COLA.
We have not. We could look, if directed to, we could look at that. That's not something we've done. We've done across the board historically. Could you explain why? Explain why? That's not been a prerogative or a directive that we've received.
I just said why. The reason is that it's known in organizations when you provide targeted salary relief to a band of employees... then it causes compression amongst the organization or across the organization in that light job. So it's just not a good practice. That's why we don't do it.
Yeah, I agree with that as well. To add a little bit more information, we do look at bans, not for COLAs, but we do it for the market. Every year we take a look at a group of employees. The 100s are blue collar employees, 200s are professional staff, excuse me, are 300s, the executives. And we take a look and we assess the market to determine if we're paying fair wages. So we do that. We're doing that in this budget. We're doing market adjustments for our blue collar workers, 100s and 200s. So we're doing that. We have an average of about 8% adjustment. for our 100s, and I think it's about 12% for the 200s. So we're doing that market adjustment that was explained during this process. So we do it. Now, when you look at the COLAs, we don't recommend that right now because we do look at the market adjustments per pay class 100, 200s, and 300s.
So you're saying there's still an 8% gap to overcome in the 100s, a 12% in the 200s? So when we looked at the market,
there is, on average, an 8% gap for the 100 employees, a 12% gap on the 200 employees, and I just wanna make sure the percentages are correct. It's been a second before I looked at the data. And we are making that minimal impact adjustment. Okay, I'm sorry, it's the other way around. 12% for 100 employees and 8% for 200 employees. Sorry about that. But we're making those market adjustments in this budget.
Okay, I disagree fundamentally on that philosophy. I think that's a strategy that any organization can employ, and it doesn't have to be a standard policy to employ that strategy in years of a tighter budget. And especially when we're looking at a 12% gap at the 100s, adding a 3% there, 8% gap at the 200s, and a 1% there, that still leaves a fair gap between those two ranges.
Let me, I guess, be clear on it. So we are making adjustments of those percentages on average for our employees. So our 100 employees on average will receive about 12% pay increase to catch up to the market. So we're doing that right now. In addition to that, they will get the COLA on top of that.
I see. That wasn't clear earlier. Thank you, Michael, for clarifying that. Okay. So since we're still talking about item four, we said that 820K is less than half of 1% of our budget. For 39 departments, less than half of 1%. I don't know, I think anybody who has run an organization has had seasons where you go to your different departments and you say, we're in the next budget cycle. I want a 5% reduction, present your budget. And I realized that we've cut a lot back to overcome that 1.9 million, but we're talking less than half of 1%. So I'm still frustrated that that wasn't, you know, even talked about coming into this with a presentation that says, hey, option A, we undo everything we did. Option B, we add these fees. Option C, we cut half percent from these different departments. I felt like we kind of came to this today like we were handling three signatures several weeks back, which was, we know this was an interest, but we know where we're at, we're not gonna talk about it more. So that makes it difficult to revisit item four, because I feel like less than half of one percent is something that we possibly could have overcome, we could have looked at. Sponsorship reductions in different departments. We could have looked at, you know, hey, we have a wish list. Let's cut it back to a want list a little bit tighter. I know we've done a lot of that. You know what I'm saying? Like spread that around the organization a little bit.
If I may.
Yeah, that's what we did. So that's what we did last weekend where we came up with 800,000. We canceled all the memberships that we generally could. We consolidated departments. I mean, if you want more reductions, I would recommend cutting parks more. We could take two parks, two crews. But the across-the-board approach, it's not good. We don't believe that's good budgeting. It doesn't help us for a recurring structural budget. You have operations that begin to struggle, and then you're poorly performing across the entire organization.
I was just going to point out that one of the challenges with calculating the percentage on the fly like that is we're including all of our personnel expense in that calculation, and so that is typically something that we wouldn't want to apply an across-the-board percentage to.
Thank you.
Councilman Hernandez.
Thank you. You know, for our insurance, I've got to say it's really pretty good. I mean, considering, I mean, even when I was with Coca-Cola, it was better than what I had at Coca-Cola. It's better than what my wife gets at her job. I mean, it's really, really good. Don't, I mean, it's, you know, even the high deductible plan, you're given $2,000, you know, in the health care savings account. There's not, you know, a lot of other companies require you to put money into it from your bank. So, I mean, what I want to say is that we have a good plan here. It's a great plan. Yeah. Okay. Now, I want to just be very clear on this. For the 100 employees, you're giving a 12% increase across the board for 100 employees, or is it just for specific employees?
That's a good clarification. It's not across the board. It's on average. So it's a minimal impact. We have a budget we have to live with in our budget. So if an employee, we did a market assessment based off the pay grade. If they are not at that pay grade, then we bring that employee up to the pay grade. So on average, it's about 12%. 12%.
So what's the range?
So the 100 pay plan for hourly employees, we assess the titles, all of the classifications that are in that pay plan. We looked at, on average, where they're below the starting point, right? So that's where we're moving those salaries from, let's say, $13.28 an hour to $14.64 an hour. So that is the amount that that particular classification is moving up. So on average, the titles are moving 12%. So every person in that plan is not receiving an adjustment. It's just we're trying to get the people that are below the minimum up to the minimum. So that's why we call it a minimal impact.
Okay, so what's your range of increase? I mean, if you have 12% as your average, what is it, 6% to 20%? What is it?
think some of the largest increases from the bottom up, sir, because our kind of like our living wage is 1328 and we are trying to move it to 1614. So that would probably be some of the largest increases.
So you're having some significant increases on the 100 range and then the 200 is an average of 8%?
It's actually closer to seven. I think we were rounding a little bit, but some of those classifications, for example, we won't be using the first four grades of that plan any longer. because that's where the market has shifted those positions. So our lowest paid salaried employee is a nutritionist. And so that position would be moving up to that grade 205 from where it's at right now. I think it's approximately, I'm not sure off the top of my head, 10 or 15%, but I could provide that.
Okay, so we're given some significant increases to comply with the market.
Yes, sir.
And what we think is the living wage, right? So I'm not sure what the, what the pushback is on this COLA versus merit incentive. I mean, we're not talking the 300 range, right? That are making 80,000 plus, right? Is that the cutoff or is it?
I'm not sure the cutoff, but to help answer your question is if we don't do the COLA, we already started getting behind the curve already.
Does merit pay not count?
Well, in January, it will. But starting October, we're going to start. I get what you're saying.
But I mean, what we were concerned about was your low end pay folks that were the 100 and 200s. But they're getting, you know, an average of 12 and 8 percent increases or just below 8 percent. So I don't understand the pushback on the on the merit pay versus COLA. Well, so I'll I'm not going to go. I'm not going to. You know, I get your argument point. And I know what you guys want. I don't think that's appropriate. I'm going to go ahead and make the motion. Are we on item four or are we on item seven? Item four. Okay. So I'll make a motion to amend re-designated 3% COLA to the fiscal year 27 budget with 1% COLA effective October 1, 2026, or closest pay period to October 1, 2026. and eligible for two percent merit-based pay program utilizing performance evaluations effective january twenty seven june first twenty twenty seven or closest period pay period to january first twenty twenty seven i can get a second all right so you have you're amending the motion amending the motion to the approval of the budget If I can get a second, then I can vote on it, and then we can move on.
He would vote on the tax rate with that amendment. Right, Councilman? I'm sorry? You would approve the current tax rate with that amendment? Yes. Yeah.
If not, I won't. Right.
Well.
Okay, I'll second. Yeah. Thank you.
You're welcome. Okay, we have a motion and a second. Councilman Boyer.
after we let's let's finish this up i'll vote on this we got an amendment with a second on the floor i'll go ahead and vote on that then i want to make comment make my comment all right okay so we'll hold the comments for um here momentarily so we have a motion in a second we're going to submit our votes that fails so the motion fails now can i make my comment yes go ahead i i just want to remind the council you know and and these are things that have already been said city staff has worked on this budget tremendously hard and set things. And for Peter, because so there's been a couple of times now that we have basically thrown some ideas out to Peter and he stood firm. Hey, we don't want to change this because if we do this, it's going to have repercussions overall. And it's not going to be a good thing. We've heard that over and over again, and you've stood and taken that position. I want to remind the public that what we're really talking about and what we're spending this amount of time on is that at the end of the day, we will save, if we change this and we do away with 866,000, did I get that right, 800? It's like 820,000. 820,000? Mm-hmm. That we will save the taxpayers $5 a year. $5 a year, we do away with the homeless ambassador or whatever that position. We do away with a lot of the street things. We do away with those programs that this council fought hard to put on for $5 and the right. Again, and I challenged the council members here last week to put on a postcard that goes out to the mailer to say, hey, I voted not to raise taxes. When in fact, we know that we probably tweak taxes a little bit too much when we did the, instead of going from a 10%, we went to a 20% reduction when it came to the...
The homestead exemption.
The homestead exemption. You know, that was something that we thought hard and long on, and that hit us by $10 million, right? Yeah, $12 million. $12 million. And so we had to absorb that. Now we came in and we absorbed another $1.5 million just to get to where we're at right now, and now we're asking to save another $820,000. At the end of the day, $5 savings to the taxpayer. You know, if somebody were to tell me that, look, I drive a BMW and my BMW is supposed to have 93% octane, but I can put 87 in there if I want, but I run the risk of blowing my engine up. I use that example because that's kind of where we're at right now. We have a budget that the staff is comfortable with that we know is going to do some good things. And for $5 a year, we're going to blow it up. Hey, I'm talking, okay? I'm just saying I'm talking. You're sitting there interrupting. I'm talking. And at the end of the day, that's what we're doing, and that concerns me. So I just want everybody to dig deep and think, take a deep breath and think, what are we doing here? What are we doing here? I think this is a good budget. And I think we should stick to where we're at. And I understand, I voted. I understand your idea. Maybe we'll win that in the future. But right now, we've got to vote, and today's the day to vote. So thank you.
Councilwoman Campos.
Thank you. Okay, well, I'm glad that we're talking about our employees and what this budget means to them as well. I had asked Peter about the disparity between the highest paid in that department, the director versus the lowest paid, and what the difference was, and are we meeting their needs? I mean, we have, for example, you know, the animal care services director that is, their proposed salary would be like, what, 200 plus? Yeah. And then you have an employee that is earning like 13 bucks an hour. The disparity doesn't make sense. So I am glad that that is being fixed. I don't know how often you review those rates, but it's been.
Yeah, it's been being fixed for the past eight years. So every other year we try to get a pay band.
Every other year you go with. Like we go with the 100, the 200.
Yeah, it goes 100, 200, 300. And then we repeat that cycle.
Okay.
as much as we can to be competitive in the market.
So I'm grateful for that. And again, I just want to emphasize that we are talking about, what, $5.25 a year to move on this budget. I'm just confounded. I know that We've been working on this budget for months. It's not like it just came out of nowhere. I mean, we had the meetings. We had, you know, city community input. We, you know, so we tried to fix what we could. And then to do this at the last second, the last minute, I just, I don't agree. So hopefully my... My fellow city council members will all come to the table and, you know, let's just get this budget paid for or or approved rather. So that's all I've got to say.
Councilman Scott.
Thank you. I want to thank you guys for the work that you've done when you cut out was a million nine nine hundred thousand. What do we start cutting halfway through the year? About $1.9 million. So, I mean, it's not like we haven't worked hard to cut the budget, and I appreciate the work that you all have done. I appreciate the work you've done on the adjustments to the 100 and 200 level. I think we actually added a lot of expense to the audit department because we wanted it to be competitive, and that's awesome. I'm okay with the budget as it is. I think the reason we're in this spot is that we asked you to add stuff to it. And I like that. I support that. I supported the homelessness initiative. I was a big proponent. I think we made a mistake last year when we didn't do the abatement program. And I feel bad for my part in that. I thought there was a chance to get that initiative going and realized, like, the next day that wasn't going to happen and apologized to Michael. So, I mean, I think that As a council, we kind of helped create this, and I'm part of that reason. I appreciate the council vote last week to get to the day. I think it's really bad public policy. I get the necessity, but I think it's bad public policy to be deliberating stuff like this at the 11th hour. Gil, I heard Gil mention that idea last week. I didn't think it had legs from the rest of the council, so I don't blame you for not Coming back with alternatives, I thought each of us get to make a statement. And then if you feel like it has legs, you respond to it. But if I make a statement and nobody else reacts, then you just, I think, you move on. So I have no ill will for the way you've come back today and say, look, we've done the math. We like the budget as it is, and we stand by it. So I'm prepared to vote yes on the budget as is. I just think it's the right thing to do. Thank you.
Councilwoman Vaughn.
I would just say, because of the challenges that we had this year, homestead exemption was part of it, $10 million, I think you said. And I'm glad they did the homestead exemption, but I wish they had done it gradual and not so much at one time. Because, I mean, I benefited from it. But I think for the future, for the next term, the ones that are here, I think we need to start working on what we're going to do. Because we give out a lot of money to TURs. That's going to be something everybody's going to say, leave the TURs alone. but if the city does not have money, we need to reevaluate some of the tours that we're doing and what we are giving. If we have to cut it down, but that's money the city needs. You saw that this year, if you had to cut 1.9 and then we had to scramble to come back to do abatements, we have got to reevaluate that.
Yeah, we agree. Okay.
Thank you.
We're going to be working on next year's budget already. So we'll be here next year with the mid-year adjustment.
Okay, so. We did? Oh, I didn't hear you, who seconded? Yeah, did somebody second? Did you second it? Okay, as is, or with? Oh right, because the amendment failed. Okay, so we're back to the original. So we have a motion and a second on item number four, as presented, correct? Please submit your vote. We've already had it. Motion carries.
Okay.
Okay, so the motion carries.
Now we've got to do the tax rate, though. Item 7?
Yes, we have to go to 7?
Yeah. So, does the motion reconsider it? Okay.
Yes, we need a motion to reconsider on this one, too, please.
Does it have to be somebody on the prevailing side? Does it matter?
We already did it.
Oh, we did?
We already did the reconsiderations.
No, I'm talking about the...
Right.
The item number seven.
Oh, to say it?
Item number seven.
Does it matter who says it?
It has to be someone on the prevailing side. Okay.
No, I support it.
I lost. I supported Cantu, Hernandez, Paxson. The mayor abstained. It's actually a tie vote, but... Yes, we voted number four, so now we need to go back to number seven to approve the tax rate. Huh?
Okay, so no, he didn't. You voted no. No, you voted no. Okay, so you're voting yes? So then the vote on item number four is 6-7-1-1. With Councilman Cantu voting for the item. 7-11. 7-11, yeah. Okay, got it. Thank you. Okay, so who needs to?
Justice.
Yeah. In order for us to be able to do the budget, it needs to be yes on this next vote in order to do the budget, to fulfill the budget. Just saying.
Yeah.
Not trying to influence anybody. I'm just saying. Right.
You out there listening, Michael Hunter?
Okay, so you are able to... Brent Chesney.
You're reading that?
Am I able to read it?
Rebecca, is he able to read this?
Council Member Vaughn is going to make the motion to reconsider. Do you have that? Well, first we need to reconsider it, Mayor, before we can act on it. We're good. This is for seven. For item number seven, we need to reconsider that as well. No, ma'am, we haven't done it yet. We've reconsidered number four. Oh, I see. Okay.
I'll entertain a motion to reconsider item number seven.
Yes, you did.
She said she would. Second? Second. Okay, we have a second. Go ahead, Councilwoman.
Well, then we need to vote on the motion to reconsider. Okay.
All in favor say aye to reconsider the item.
Any opposed say no. No. Okay, the motion carries. Yes. Go ahead.
I move it. Well, put your light on. I move that the property tax rate be increased by the adoption of a tax rate of $0.599774 per $100 evaluation, which is effectively a 0.50% increase in the tax rate. Second. Second.
We have a motion and a second. Please submit your vote. This is item number seven. I don't know. Who are we waiting on, Rebecca? Nobody. All right. Okay, the motion carries. It fails. We need six votes. Oh, we need six. We need one more vote. Don't put it on me.
So in order for the other one, us to be able to do that other one, then can we just take some stuff off of the other one and then we can pay for it?
Yeah, we could eliminate the, um, everything we wanted.
That's what we have to do.
As far as I'm concerned, we'd have to do three things, eliminate the mowing, eliminate the homelessness and cut one parks crew. Um, that would, uh, but for the record, and we get a point out meant some of you will be back next year. This is going to have a bigger impact on the 28 budget. And it's going to be similar to when we advised not to do the general homestead exemption at 20%. Yes. And it's had massive impact. We can't do a bond program this year. Our streets funding is down. We've had to cut $22 million out of the budget. So this won't have as a significant, but it's going to have a recurring multiple year impact. That gets worse every year that goes by.
Things have consequences. They do. And by us not doing that, the things that we added, we cannot do.
Correct. Correct.
Councilman Hernandez.
I am willing to change my vote if we go back to the merit pay.
To what?
If we go back to merit pay on item number four, on the motion that I did for that, I will change my vote on the tax rate.
Let me just say to that, Councilman, that there's 3,500 employees that this would impact, but I think speaking for them, we're glad that we're able to have some Financial relief in the budget that we were able to put that in given the 22 million. We've had to cut So making that minor adjustment of 1% on October 1 and then performance based on January 1 I Would be okay with that if you would approve the budget tax rate as it is today so we can get this budget approved I mean the employees are still benefiting. It's just and it's still I'm the one that put this in place which is having merit based pay not just you get an automatic COLA because we had a lot of employees back then eight years ago that weren't doing as much as the highest performer but still we're making the same in terms of an increase annually. So performance based pay matters. And this year we thought we'd try something different because of the aggregated inflation. aggravated inflation and our increase in health care. But if it takes making a minor adjustment, I think our employees are still in good shape because there's still 3% in the budget that they'll be entitled to.
And you also have the market adjustment of 12% on average for 100 employees. Right, we do that every year. 8% on average for 200 employees. That's correct. So the COLA or the merit pay is on top of that.
That's correct. As you pointed out with the council over the past eight years and our recommendations, we have a much better health care program. Eight years ago when I first started, the number one and pretty much the only thing the employees complained about was the health care program. And we fixed that in year one.
And like I said, you're better than the private sector right now.
We agree.
I can attest to that.
Yeah.
Okay, so.
Except for San Jacinto title, maybe better.
Well, my point is, you don't know that.
Well, it's better than what I can get on the private sector. It's better than Obamacare.
How's that? We're okay with that recommendation.
Okay. So with that, I make a motion to reconsider item number four.
I'd like to make a comment.
Yeah, we're going to make a couple of comments, Gil, if you'll hold on. Councilman Barrera?
So I'm willing to agree to the extortion. And the extortion of which, as Councilmember Royce said, we're going to save each homeowner $5. And mind you, the more expensive a home you have, the more money you're gonna save. So the working class of Corpus Christi is gonna get the least amount of benefit of this adjustment if we went to the three cents, and that's a thing. So that's one thing to consider. The other thing is that when you have a market adjustment, that just means you're getting paid the average of what you should have been paid already. You know, it's not an increase. If you're underpaid and you get to the market, hey, don't, don't, I'm not going to give you a pat on the back for paying me what I should have been paid up to begin with the whole time. You know, so I really don't appreciate, I really don't appreciate the fact that we're trying to say, well, they're getting an increase anyway. Well, no, they were underpaid for the long time and then you're going to reward their loyalty with, You're going to reward their loyalty by telling them, but you know what? We're going to count you getting up to the market and making sure that it's okay. And in this era, of course, you know, I know some people don't believe it, but I'm a Democrat, and I believe every individual should have access to health care, and they should have access to first-dollar coverage, and you've done a good job by getting those employees to that level. You've done a good job. You've done a good job by getting those employees to that level so they have access to care. Access to care. And, you know, mind you, if you went south of San Antonio and we were a 51st state, we would be the worst in diabetes in the entire country. You know? And part of that is because people don't have access to care. Now, I don't know. I mean, as somebody that works in the business that ensures several thousand lives, yeah, our plan is competitive, I would say. But it's not the best. And you've done a great job at getting it to the point where it needs to get. Your team has done a great job. You've had a great culture of supporting employees. Fine. So we can quit holding the budget hostage so that way we can be here? I'll go ahead and vote yes. But it really ticks me off that that's what we're doing. And right now, we're holding our employees hostage. And we're telling them, hey, you know what? We're going to go ahead and get you to regular pay. But you know what? Over the course of the next two years since we're looking at it, we might just raise you to the average wage. You know, I mean, that's not telling your employees you appreciate them. And they're the ones that have to go face, they're the people that have to take the calls at 311 when people are upset. They're the ones that have to go fill up the potholes. They're the ones who have to deal with all that. All the code enforcement people that have to go out there in this last year. We didn't allow them this last year. We didn't give them the money to help with the statements. You know, for all the individuals that say that we're not doing our part for libraries, you know, and that's the thing. We're going to do an ego vote. That's what this is. It's an ego vote. You know what? I'm going to vote yes.
Councilwoman Jackson.
You have a good poker face. I don't like the comments that are thrown around about this being political or ego or anything. Everybody up here has to vote what their conscience is. I think there's still areas that we could look at this. And I would actually challenge Mr. Barrera If he thinks that this is such an attack, I mean, why doesn't he step forward and offer to pay for some of the $300,000 we pay annually to the bull riding association for buck days? That's $300,000. That's a huge portion of this $820,000.
I think if... You're talking about the hotel occupancy tax.
Yes, but if we had that savings in hotel occupancy tax, there's so much more in the general fund we could put back. It would slide things over because we cover a lot of costs, a lot of costs from hot tax. And if we got that hot tax back, we could put it back in the general fund.
You can't mix those funding sources.
Hot tax can go to a number of things. Hot tax can go to lifeguards. Hot tax can go to those operations we have on shoreline. We have a designated area that goes to that. Hot tax can go to a lot of different things that we pay general fund for. We do consolidations of multiple budgets to get things done. We just spent days. Michael Rodriguez, we looked over a lot of this stuff.
Yeah, you're right. It is guided by state law where so much can be used for visitors and tourists, but we don't have that information today.
It's still a budget savings that we could reallocate with, is my point.
Yeah.
I don't know the exact number. I think it was 500,000, and I'm not advocating we take it from there, that our city manager had, and I think you gave it up last year because you were trying to close that gap.
Yeah, we cut that to zero. It's been zero for two years.
This is not, in my opinion, an attack on anyone. We want our employees to be raised. They should be raised to that minimum. When I found out that we had staff members that were making $13 an hour, I was deeply upset by that. That is difficult to live off of, almost impossible. This is not advocating to suffer any of those. A merit-based pay increase makes sense. A lot of organizations do that. That is separate from a COLA. That is separate from bringing them up to standard. But the comments that this is holding them hostage is not fact. We have a huge organizational budget. I have done it before. I'm the big advocate for it. Roll up your sleeves, get out the budget books, and go to Peter and say, here's some things that I think we could maybe evaluate. Without that... that being held over our head, we're going to just cut everything. There's middle grounds. There's things we can do. And in fact, from the very beginning, I think it was last week, I even said, let's try to get to no new revenue. How about our mayor? Madam Mayor, you had the budget presentation given to you just now. We have the books available online. All this information is here. Maybe vote for it. You're advocating for it strongly. I recommend you vote for it.
I bet you do. But y'all had me sit out for 30 days. No, but you cannot possibly say, vote for something you're hearing for the first time. When y'all have had, no, no, don't scoff. You've had meetings, you've been, right. That's probably, that's, yeah, that's in line. Meetings and discussions. Let's not turn this around about me. I've not been here for 30 days. I haven't had one conversation with Peter.
I think this is still my five minutes.
It is, but you looked at me and you were talking to me and you addressed me.
I think I have freedom of speech, Madam Mayor.
Not one conversation, Peter, have I with you? I think I'm allowed to voice my opinion, Mayor. Because that was the rule that was imposed. So you want me to come out here and vote on this budget without one discussion? This is not how a council meeting should go. That comment needs to stop on this dais. I have every right. Because it would be completely irresponsible. So please stop saying that. You vote, you do your right thing, and you let me do mine.
It works both ways. It would start with allowing me to have my comments, period. I have every right to speak with anybody up here, and in your next turn, you can address it.
Councilwoman, speak, and let's move on.
Because this is getting out of hand. We're going back and forth. So let's move forward. Let's move forward. I believe I respectfully voiced my opinion and that didn't warrant an entire back and forth dialogue.
It's the second time now, second person on this dais. Let's move on, Councilwoman. Let's move on.
I think I know how to voice my opinion. Let's move on. The question is whether or not you allow me to do that.
You're doing it. Could you allow me to now? Let's go on. Could you allow me to? I'm asking you to go on. Go ahead.
no one up here needs weaponized for their own opinions if you don't want to vote on something that's your prerogative but i have every right to say hey you're advocating for it perhaps cast a vote for it anybody up i'm sorry could you stop interrupting me i would appreciate it thank you very much for that move on excuse me let's move on please finish your statement of two minutes This does not need to come to this. Everyone has a voice and an opinion and a vote, and we need to allow it to be such and move on from that. We don't need to have a bunch of accusations, upset inferences, and interruptions. Respect goes two ways. Everyone has a vote. Everyone has an opinion. They're welcome to say that, and that's that. If you don't feel like you support this tax rate, then don't vote for it. Operationally, what happens next? the city manager and staff, and I advocate, hey, step up. If it's so important to me to try to fight for the no new revenue tax rate, that I am willing to pull apart the budget book, and I'm willing to say, Peter, can we look at these costs? Can we move these things around? I am more than happy to do that. I've done it 100 times. That's the next step here. If the tax rate fails, it's not the end of the world. It's just part of the process. If we come back in a week from now and we say we can't realistically close that $820,000 gap without losing these things and no one's able to live with it, then we'll vote for it. But I feel like there's still room to evaluate that. I think we can still look at that without it being held over our heads that we're gonna cut mowing, that we're gonna lose abatement, that we're gonna lose all these different services. Maybe we advocate for a partial funding on those. We've got $600,000 that we've never allocated in the past to go to taking down structures. That's huge. In the past, our abatement costs, which, by the way, we need to expand that definition of abatement. It needs to cover mowing and a lot of other different things. Development services can help us with that. In the past, we had $300,000 for structures, mowing, everything. This is a huge amount. Let's look at that. There's things we can do. We don't have to be black and white. If we don't ask the questions, then they're going to be asked to us. We have to be able to justify how we voted on it. And if it doesn't pass tonight, it's okay. Either we call a special meeting or we pass it a day after than they would like us to, and we'll figure it out.
If we don't pass the tax rate today, we have to re-advertise for 30 days. This is the last day based on the last public hearing and the tax rate. So we'd have to, first of all, we'd miss the deadline to mail out the tax bills. So we'd have to tell you how much it'll cost to mail out a separate tax bill for the city. And then we have to hold the public hearing and then we'll have to take the vote. So you're probably talking late September.
Yes, sir. So today is the last day. We have to adopt a tax rate within seven days after the last public hearing. If not, we have to start the advertisement again of the notice of public hearing. And we can't have a meeting. We have to wait five days to have that meeting. If we were to advertise today, that publication wouldn't have until Sunday the 13th. So potentially you'd be looking at the 22nd and 29th of September for the second reading.
Or the 18th.
Right. Well, the 18th would be the sentence on a special meeting.
Right.
Right.
Okay. And then what is...
We don't have council meeting scheduled on the 22nd of the 29th, but we would, I mean, have one.
But it's still passed before the next fiscal budget.
Right. It would need to be. I'm having Buck check, but I think the charter says mid-September it has to be approved by, I thought the 15th for some reason, but we'll look and let you know.
If it needs to be done by the 15th, we call a meeting before the 15th. That's doable.
Yeah, the issue is you have to post it, and then you have to have a public hearing, and then...
Does that count if you recess to the next business day?
No, there's a separate... So the notice of public hearing for the budget has to be posted for 30 days. And so, right, because we've already posted it.
I'm talking about notice of the tax rate adoption, so those are two different items. And so... I can't speak to the budget notice and that publication. I can only speak to the tax rate publication and the guidance we get from the county tax assessor.
Yeah, Buck just checked the charter here, so the budget just has to be approved by the end of September.
The budget.
Right.
It doesn't say the tax rate.
I thought it was mid-September.
But the state law requires the tax rate to be adopted before September 29th. I'm sorry? September 29th is the deadline to adopt a tax rate above the known new revenue rate.
Okay, thank you. Councilman Hernandez.
Okay. Mr. Rodriguez, can you come up to the... Do you remember briefing me on the pay plan, I want to say a couple months ago? And what did I tell you at that point in time about what I thought on the COLA versus the merit pay?
What you said today.
Okay. Okay. So have I changed in any way?
I can't tell you that.
Have I changed my support for merit pay in any way? No. Okay. So to say that it is something that I just, you know, this has been, Peter, I'll ask the same question. Yeah. In the eight years or seven and a half years that we've been working together, have I ever had any other position than merit pay. No, you've been very supportive of that. Very consistent. It's not new. This is nothing new. The position I'm holding is something I've held since the very beginning. So I don't want to hear the nonsense of this, you know, me holding somebody hostage or something or other if it is something I've consistently had a position on since day one. So I don't want to hear that nonsense. But on the flip side, I cannot make that motion to reconsider item number four. I was not on the prevailing side. So I'm going to have to ask somebody to make the motion to reconsider item number four so I can make my amendment.
I make the motion to reconsider item number four.
You always look at me. Because you're next to me. Here's my point. Can I talk to you?
Well, you've got Eric. If Eric allows you, he's before you.
going to say this. I don't like ever, you know, I sit and I look at these employees that make $13 an hour. I don't know how they're living off of that. I just don't know how they're living off of that. And I do think their pay needs to go up. And the insurance, it is a really good plan because I was in the private sector. I know what the public pays. I don't know if the employees realize how good a plan that is and the cost. It really is. My premiums right now, ours are ridiculous. So I have a hard time with that. I wish we could just Adopt the, we got the budget going, so we just need the rate. That's it. So somebody else want to second that for him? I just, I don't like it. I don't like it.
Your councilman can too.
How much is it going to cost us if we don't get the votes today to postpone to the tax collector?
I'm not too sure what the cost is for sending the bills out separately or not on the schedule.
Did you have that price? No, I don't. You don't have that price? Does anybody have any idea, more or less?
Like 90,000 accounts times 30. What's the cost for a stamp nowadays?
70 cents, I think.
70 cents? Yeah. Let's just do the math on 90,000 accounts times 70 cents. 630,000? 63,000.
Okay.
I know everybody just started talking. I'm sorry.
I thought you were done.
You're done.
Well, no, I was going to read the motion.
Well, I know, but Councilman Kent, she's behind the floor.
Go ahead, Councilman. I just think to be – I'm not picking on you, Mayor. I promise you. I'm not picking on you. I just think that you need more time to figure this out to see what side you're on. either a yes or a no. You know, I really wish we could table this for another week and get the mayor up to speed, Peter. I mean, so she could figure out a yes or a no, not abstaining. You know?
Yeah, and I know you're not, but you kind of thrown it on me. Well, give me how many weeks did y'all do it?
We needed a week, so that's all we needed.
No, I'm kidding. But it's a little more complicated, I think.
Yeah, the mayor said no. I tried, okay, no problem.
Well, we need to, we really, based on the timeline and what it would cost. The timeline? Yeah, for the tax.
Yeah, that's just the postage, so we don't know if there's a processing fee. Plus, it wouldn't look good, I don't think, just to have the city's bill sent in by itself. People are going to say, what's this? You know, usually it comes in combined, so it's not going to make a good look for anybody. I wouldn't do that. Oh, well, we've got to vote on the...
On the motion to reconsider.
Right, okay, so all in favor to reconsider, say aye.
Any opposed? Okay, the motion carries.
Okay, I would like to read my amendment again. This is for item number four, a motion to amend to redesignate 3% COLA in the fiscal year 27 budget to 1%, effective October 1st, 2026, or the closest pay period to October 1st, 2026, and eligible for 2% merit-based pay program utilizing performance evaluation, effective 1-2027, or closest pay period to January 1, 2027. I need a second. Second. Do you second? I appreciate it. We have a second. Council Member Gump will second. Second. She's second.
Okay, we have a motion and a second. And that is to go back to the 1% and then 2% in January.
Right, the amendment to item number four to address the merit pay.
Okay, please submit your vote. Wait, does that, do we have to have, we do have to have six?
No, we need five for this.
Five, okay, right. Okay, so the motion carries.
Mayor, I'd like to make a motion to accept item number four as amended.
Okay, we have a motion and a second. As amended, please submit your vote. Okay, the motion carries.
Mayor, I make a motion to approve item number seven. Or do we need to reconsider? Okay, I was on the prevailing side, so I make a motion to reconsider item number seven.
Okay. Please submit your vote.
Well, that's just the motion to reconsider.
What's that?
That's just the motion to reconsider, just so we can talk about it again.
Oh, okay. Yeah. All in favor say aye.
Any opposed say no. The motion carries.
Okay. Mayor, I make a motion to approve item number seven. Oh, wait a minute. Sorry.
Let me read it.
I move that the property tax rate be increased by adoption of the tax rate of .599774 per $100 evaluation, which is effectively a 50 cent tax increase in the tax rate.
50%? 0.50? 0.50% tax increase in the tax rate.
Second. Six. We need six.
I need a second.
I second.
Okay. Okay. We have a motion and a second.
Mayor's doing that.
Okay, the motion carries. Okay. Okay, there being no further business, this meeting is now adjourned at 6.23.
This transcript was automatically generated from the official public meeting video and is presented unedited. It reflects remarks made on the public record by elected officials, staff, and public commenters. Transcript accuracy may vary; view the original recording for reference.