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HomeMy WebLinkAboutMinutes - City Council - Special - 6/11/2003CITY OF LUBBOCK SPECIAL CITY COUNCIL MEETING JUNE 11, 2003 9:00 A. M. The City Council of the City of Lubbock, Texas met in special session on the 11th day of June, 2003, in Committee Room 103, first floor, City Hall, 1625 13th Street, Lubbock, Texas at 9:00 A. M. 9:10 A. M. CITY COUNCIL CONVENED City Council Chambers, 1625 13th Street, Lubbock, Texas Present: Mayor Marc McDougal, Mayor Pro Tem Victor Hernandez, Council Member Gary O. Boren, Council Member Jim Gilbreath, Council Member Tom Martin and Council Member Frank W. Morrison Absent: Council Member T.J. Patterson ( 1.) Presentation from Mike Cunningham and the City Treasurer Selection Committee regarding creation of an Audit Committee. Mike Cunningham presented the final recommendation of the Treasurer Search Committee to the City Council regarding the need for an Audit Committee. He stated they proposed an integrated finance organization for the City of Lubbock. Mr. Cunningham presented the structure of the organization. Voter — Mayor/City Council — City Manager — CFO/Assistant City Manager — (Budget, Accounting, Finance). In addition, they recommended consolidating the Internal Auditor function by dividing it into two sub departments (performance and financial). The Internal Auditor would report directly to the CFO/ACM and would have an advisory relationship with the Audit Committee. He stated candidates for the CFO position were being interviewed June 12, 2003. Council Member Morrison asked about the quality of the applicants. Mr. Cunningham stated that overall, he was very happy with the eight applicants and he would proud to present any one for recommendation. This recommendation will be made to the Interim City Manager and then to City Council. Council Member Martin stated he wanted it clear that the CFO is an employee of the City Manager, hired by the City Manager and fired by the City Manager. There is no requirement whatsoever under City Charter, State law or anything City Council has control over to have any input into the process. Council Member Boren stated that due to the way things had happened in the last twelve months, he had asked Interim City Manager Tommy Gonzalez to get advice and input from Council on this position. Mayor McDougal stated that the former City Manager Bob Cass had always brought forward to Council any position of this magnitude. It would be the City Manager's final decision. However, he expected that Council be afforded the same opportunity before the final decision is made. Mr. Cunningham stated that in the present environment, he thought for courtesy for the individual hired as the CFO/ACM, the wise thing would be to get the advice and consent of the City Council. He also stressed that once this person is hired that he or she works for the City Manager, is solely responsible to the City Manager, and is hired and fired by the City Manager. This is extremely important to the integrity of the finance function and Mr. Cunningham strongly recommended this. Special City Council Meeting June 11, 2003 Page 510 Interim City Manager Tommy Gonzalez responded that he fully intended to keep the Council involved, as has been done in the past. Council Member Gilbreath asked if the new Sarbanes-Oxley law would affect the above organization. Mr. Cunningham stated this specifically applies to publicly held companies. If the realm is extended to any entity issuing public securities, and the City's debt would be qualified as a public security, it could come possibly under the purview of Sarbanes-Oxley. If so, the basic structure of the internal audit function would work. But the line of reporting instead of being directly to the CFO/ACM would be indirectly to the CFO/ACM and directly to the Audit Committee. Council Member Gilbreath asked if it would be more appropriate for the Internal Auditor to have a "solid line" reporting relationship to the Audit Committee and then a "dotted line" relationship to the City Manager, as opposed to the CFO? Mr. Cunningham said he would entertain that as a friendly amendment. He stated he did not feel that he would be compromising the recommendations of the Committee, City Council or City Manager by accepting the friendly amendment. He also stated he thought it would be in the best interest of the City to do this. Council Member Gilbreath stated he offered it as a friendly amendment. Council Member Hernandez mentioned that Council should be very vigilant; but not intrusive. Council Member Boren stated that if the City Manager hires the CFO, but the CFO reports to the Audit Committee, he didn't know if the City had the wall of distinction of protection they are looking for. Mr. Cunningham said he felt the City had that because of the professional, independent, external, certified public accountants. They are placing their livelihoods on the line by certifying that the financial statements are presented in accordance with the general accepted accounting principles and with governmental accounting standards. Mr. Cunningham presented Audit Committee guidelines. This committee is structured as advisory only. Mr. Cunningham referred to a resolution which was provided to council for the June 12, 2003 Regular Council Meeting. Council members thanked Mr. Cunningham and the Audit Committee for their hard work and stated the public should rest assured that the City of Lubbock is getting a handle on things. 10:25 A. M. COUNCIL RECESSED 10:35 A. M. COUNCIL RECONVENED IN WORK SESSION (2.) Presentation to the Mayor and City Council on the Recommendations of the Council appointed Citizen's Advisory Committee (CAC) regarding Capital Improvement Projects. The Citizen's Advisory Committee was appointed by the City Council to review the Capital Project needs for the next 6 years. After eight months of work and numerous public hearings and meetings, the Committee was ready to present their recommended priorities. Phyllis Jones, Chairperson, made a PowerPoint presentation summarizing their findings. She also provided council backup entitled "2004-2008 Citizens Advisory Committee Executive Committee Recommendations." Ms. Jones recognized the following Executive Committee and Subcommittee members: Lance Misner, Chair, Public Safety Committee and members Paul Dannevik and Carolyn Thompson-Conwright; Gertie Jeter, Chair, Parks and Library Subcommittee and members Dawn Pace and Bobbe Crawford; Gwen Stafford, Chair of Finance Committee was 510 Special City Council Meeting June 11, 2003 Page 511 11 Ch ' Civic Center and Public Venues unable to attend; Don Caldwe , air, and members, Jane Prince Jones, Phil Price and Bobby Kazee; and Art Glick, Chair Pro Tern and member of Streets Committee. The Executive Committee held seven public hearings starting February 10, 2003 and ending March 31, 2003. This gave citizens opportunity to speak up and request capital improvement projects. Ms. Jones stated the Finance Committee recommended a bonded indebtedness not to exceed $29.9m and six years. These recommendations included the following: Streets Summ Slide @ N. Loop 289 or Partial Funding for Erskine $ 200,000 Subdivision Assessment 500,000 34th & University Intersection Reconstruction 1,395,000 Milwaukee 45th to Spur 327 Strip Paving 1,089,000 N/E Lubbock Infrastructure 1,300,000 Regis Street Completion 364,000 Federally Mandated CurbRamps 50,000 City -Wide Traffic Signal Communications Upgrade 509,000 Traffic Signals — New Locations 450,000 Safe Routes to Schools 400,000 Paving 400,000 N. University "Gateway" Project 750,000 9,207,000 Civic Centers/Public Venues Civic Center Renovation Phase II (Partial Funding) 1,450,000 East Lubbock City Services Center/Pilot Program Auditorium Renovation 7,300,000 Parks/Libraries Meetings MLK Little League Complex 1,663,568 Mahon Library Renovation 2,144,003 Miller/Andrew Parks Redevelopment 825,850 Burgess -Rushing Tennis Center 1,086,009 Indoor Recreation Facility 25,000 Midwest Little League 1,663,568 New Park Development 1,127,776 8,535,764 Public Safety Fire Station #8 1,000,000 Fire Station #12 411,000 Animal Shelter 1,045,350 Police Facility Renovation 2,500,000 4,956.350 Total Project Summary 29,999,114 Ms. Jones told Council the Committee was asked to prioritize $80m. They were given over $300m in projects to look at. She referred to council backup for this information. A copy of a resolution was also given Council concerning the destruction of animals at the shelter. Mayor McDougal mentioned that he had stated publicly that he was not sure that now was the time to go the public for a bond election. But after hearing the committee report, especially on the $30m recommendation, it 511 Special City Council Meeting June 11, 2003 Page 512 looks like these were coming from the citizens and he might change his decision. Council discussed letting the voters decide by holding a bond election the first Tuesday in November. Mayor McDougal asked that Council Member Patterson be brought up-to-date on these matters and place this item on the June 191' agenda for discussion purposes only. After discussion, Council could decide if they wanted a resolution brought back in July to call for an election. If Council wanted to call for one, they could call it as Committee recommended or make some changes to it. Council Member Hernandez asked that staff come back with some response to the Committee's annual maintenance budget and whether or not it should be created or at what level they currently are. Council Member Hernandez also asked for feedback on establishing a committee to study the animal issue and make recommendations at a future date. Council Member Gilbreath asked Interim City Manager Gonzalez to provide information on the impact in terms of servicing debt given our present bond ratings and make some assumptions of what that might be if we take on additional debt. He also asked how that might impact our bond ratings as we go forward. Mayor McDougal requested information on how it would affect the tax rate if there were more than $30m called and what increments that would be. Council Member Martin asked Interim City Manager Gonzalez to find out how much money could be saved by holding an election in conjunction with the regular municipal election next May. This election money will have to be budgeted for. The next item considered was Item 5. (1) The Environmental Health Department is proposing a risk based evaluation inspection, instituting the TDH Good Manufacturing and Warehouse practices and a fee system for food establishments. Bridget Faulkenberry, Environmental Health Manager. This item was continued. The Environmental Health section of the Health department proposed that a risk -based evaluation, inspection and fee system for food establishments be adopted. Environmental Health also requested that adoption of the manufacturing practice and warehouse practice food rules, be put into place. Each food facility will be charged a fee according to its risk category. A schedule was provided in council backup. The charges will reflect what it will cost to provide the in-depth analysis, education, inspection, and enforcement services to each facility. The higher the risk, the more time spent on these activities. Since the department's seven inspectors' current goal is to inspect each food establishment three to four times per year (and there are approximately 1,000 food establishments in Lubbock), a risk - based system would allow inspectors to increase efficiency by spending more time with high -risk facilities — those that have the greatest potential for food -borne illness outbreaks. The permit fee structure for food service establishments in Lubbock is currently based on seating, square footage, or flat fees, and has been so for a number of years. This structure is unfair and inequitable. In the late 1980's, NASA developed a food safety process for the space program that has become the national standard for food safety. The process is called HACCP, and stands for Hazard Analysis Critical Control Point. In a nutshell, it is a system that analyzes the risk of any food program, and 512 Special City Council Meeting June 11, 2003 Page 513 develops controls for prevention of critical limits that could lead to food - borne illness. It is a risk -based system. A risk -based system would better enable staff to focus on those areas that could potentially cause food -borne illness. (Food -borne illnesses cause approximately 76 million illnesses, 325,000 hospitalizations, and 5,000 deaths in the United States each year). In addition, increased public awareness of food -borne illnesses has brought the issue to the political forefront. The Lubbock Board of Health discussed this issue at three separate Board of Health meetings on September 13, 2002, February 14, 2003, and March 14, 2003. Board of Health recommendations were incorporated and the Board approved the risk -based assessment and fee concept on March 14, 2003 to be presented to the Council. Conversations with local restaurant owners indicate that most believe this is a fair system that makes sense from a food safety standpoint. The Lubbock Restaurant Association is not currently active and therefore, we could not obtain a statement from the Association. We did share all information with at least two former Presidents of the Association, as well as other restaurant owners. Additional documents and backup material provided to the Council included the risk -based fee structure for food service establishments, food establishment risk assessment tool, risk categories and inspection frequency, budgeted expenses for Environmental Health, cost distribution and projected revenue (risk -based), and cost distribution with projected revenue (processing). In order to begin the risk assessment process, a resolution and ordinance change is required. Staff recommended approval of the risk -based fee structure, risk assessment tool, and proposed ordinance change. ( 4.) Presentation of the Monthly Financial Reports for the Month Ending April 2003 by Beverly Hodges, Managing Director of Financial Services, and Melissa Trevino, Budget Manager. This item was continued. Per City Council request, the Financial Reports for the Month Ending April 2003 were presented. The information was previously provided to Council. This information included: 1. Financial Analysis — Analysis provided in narrative form by Fund. 2. Financial Summary — a. Balance Sheet; Statement of Revenue, Expenditures and Changes in Fund Balance; Summary of Cash Balances; and Monthly Financial Summary Reports for: • General Fund • Airport Fund • Sewer Fund • Solid Waste Fund • Storm Drainage Fund • Water Fund b. Capital Projects Summary by Fund (all funds). 3. Economic Analysis — Includes Lubbock International Airport Enplanements Summary and Building Inspection Statistical Report 4. Investment Report — Investment Summary for the month of April 2003. Staff was prepared to address any questions. 513 Special City Council Meeting June 11, 2003 Page 514 Staff recommends approval. 1:40 P. M. Council Member Hernandez arrived. ( 5.) Presentation from the Interim City Manager regarding his activities for the month of May 2003. This item was considered following Item 2. Tommy Gonzalez, Interim City Manager, presented a monthly operations report to Council. The purpose of the report was to highlight the issues facing the City from an operational perspective. The report also highlighted accomplishments for the month of May 2003. Mr. Gonzalez stated that in the area of finance, $16m had been cut out of the budget. Other areas being worked on included: ■ weekly and bi-weekly meetings are taking place with directors and everyone from professional and above had been asked to have a performance plan. Quarterly operations reviews would be made on the plan. This is tied back with a performance evaluation. ■ A review of all contracts has been put together. Contract Attorney Bill de Haas is working to make sure all forms are uniform. ■ Ordinance Review Committee ■ Internal Policy Review Committee ■ Budget Review Committee — Members are Jane Anne Stinnett, Tommy Morris, Grey Lewis, B. J. Garcia and Joan Ervin ■ Employee Morale Committee — Council has passed 20-year retirement ordinance (second reading to be June 12, 2003). Mr. Gonzalez has met with employees and tried to answer their questions. Employees stressed that accountability is very important to them. He stated he gave them a website (mylubbock.com) and is broadcasting emails to them to keep them updated. The next item considered was Item 8. EXECUTIVE SESSION Mayor McDougal stated: "City Council will hold an Executive Session today for the purpose of consulting with the City Staff with respect to Personnel matters as provided by Subchapter D of Chapter 551 of the Government Code, the Open Meetings Law." 12:07 P. M. CITY COUNCIL RECESSED TO EXECUTIVE SESSION City Council/City Manager's Conference Room All council members were present except Council Member Patterson. (6.) Hold an executive session in accordance with V.T.C.A. Government Code, Section 551.074(a)(1), to discuss personnel matters regarding duties, responsibilities, and/or appointments to: Ordinance Review Committee, Policies Review Committee and Audit Committee. (7.) Hold an executive session in accordance with V.T.C.A. Government Code, Section 551.074(a)(1), to discuss personnel matters (City Manager). 1:29 P. M. CITY COUNCIL RECONVENED INTO WORK SESSION Present: Mayor Marc McDougal, Council Member Gary O. Boren, Council Member Jim Gilbreath, Council Member Tom Martin and Council Member Frank W. Morrison Absent: Council Members Hernandez and Patterson. The next item considered was Item 5. 514 Special City Council Meeting June 11, 2003 Page 515 (ag Discuss scheduling July 2003 Work Sessions This item was considered following Item 5. Mayor McDougal led Council in a discussion as to whether or not to hold an extra Work Session in July. July 2 - Work Session (the Council will be meeting with Bonding Agencies to discuss Bond Ratings) 9 - Work Session 10 - Regular Council Meeting 22,23 - Work Session (Budget) 24 - Regular Council Meeting/Budget Work Session August 4 - Work Session (if needed for Budget) 5 - Work Session (regular Work Session to include Budget, if needed) 6 - Regular Council Meeting 28 - Regular Council Meeting September 3 - Work Session 4 - Public Hearing (5:00 p.m.) 18 - Regular Council Meeting Mayor McDougal asked Interim City Manager Gonzalez to get an email out regarding the meeting changes. ( 9.) Presentation on Regional Economic Development by Market Lubbock. Mike Field, Chairman of the Market Lubbock Board of Directors, recognized Kenny McKay, Interim CEO and asked that he introduce staff present at the meeting. They were Cheryl Brock, Terry Patterson, Leah Sands and Susan Sneed, the new CFO for Market Lubbock, Inc. Mr. Fields and staff made a presentation on Market Lubbock's "New Vision For The Future.... Partnering for a Better Tomorrow". The presentation included current projects and future plans including strategic planning with the South Plains Region. The presentation explained where Market Lubbock is going, why they are going there and how they propose to accomplish the goals of "greater wealth" for the region. 2:53 P. M. COUNCIL RECESSED 3:05 P. M. CITY COUNCIL WORK SESSION RECONVENED (10.) Presentation from the Lubbock Central Appraisal District regarding 2003 appraisals and their process. At the request of Councilman Boren, representatives from the Lubbock Central Appraisal District made a presentation regarding the 2003 appraisals and the process used to evaluate property. Dave Kimbrough, Chief Appraiser, Jim Collins, Attorney for LCAD, Pat Brownd, Deputy Chief Appraiser and Patrick Brown, Director of Appraisal were present from the Lubbock Central Appraisal District. Mr. Kimbrough and Patrick Brown discussed how they worked a residential subdivision. They also stated people questioning the appraisal of their property should file a protest form. Mr. Kimbrough stated that their system of appraisal, mass appraisal, is an accepted term within the entire real estate community. It is only used for 515 Special City Council Meeting June 11, 2003 Page 516 property tax purposes. Fee appraisal is precise. Mass appraisal is accurate from the standpoint of your tax base. With 120,000 properties, LCAD is well within any statistical measures of accuracy when they are between 95-105% on ninety -percent of the properties. They hear from the ones that are high. On some areas, they wait eighteen months to two years to see if there is really enough market activity there to justify going in and reappraising that area and making changes. Council Member Martin asked to see maps for the last three years and have them set up for comparison. Mr. Kimbrough obliged. Council Member Boren asked if there was an option to changing appraisal districts. First Assistant Attorney Don Vandiver pointed out to Council that there is a formal procedure for a challenge by a taxing unit. The taxing unit is entitled to challenge before an appraisal review board the level of appraisals of any category of property in the district or any territory in the district, but not the appraised value of any single taxpayer's property. Council Member Boren asked to investigate all options, because Mr. Kimbrough stated that by statute, they had no options. Mr. Boren stated he thought it was time to call for a change of management at the Appraisal Office and see what is going on. He also asked Mr. Kimbrough for a copy of their audit to see how they operate. Mayor Pro Tern Hernandez stated that it was the general consensus of the Council to put this same item on another work session to get all information presented to Council to make a decision. First Assistant Attorney Vandiver suggested an executive session to go along with the work session. Dave Kimbrough stated he would furnish the informal changes made as far as reductions on single-family residences and also for those over 65. Council Member Gilbreath also asked Mr. Kimbrough to furnish how many appraisals were doubled. Council Member Morrison asked for numbers for pieces of property beside the 0-5% on the flow chart for 2002-2003. He wanted to know how many increased from 0-5% and how many increased in each of the last two years. Mayor Pro Tern Hernandez directed Interim City Manager Tommy Gonzalez to set up a work session and executive session. He also asked if it would be beneficial for Mr. Kimbrough to be at the work session. Council Member Boren stated he hoped Mr. Kimbrough enjoyed the hospitality and would come back. He also encouraged him to get his employees together and tell them to handle the Lubbock citizens with a lot of care, because there is a lot of turmoil going on right now about this. Interim City Manager stated it would take a couple of weeks and this would probably be brought back in July. Mayor McDougal had left the meeting. 516 Special City Council Meeting June 11, 2003 Page 517 5:03 P. M. COUNCIL ADJOURNED There being no further business to come before Council, Mayor ProTem Hernandez adjourned the meeting. Read and approved this I ) ,+h day of OM Ir , 2005. ARC,OK50WAL, MAYOR ATTtST: Re cca Garza, City Secretary 517