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HomeMy WebLinkAboutResolution - 4371 - Reappropriation Of Funds - City Manager - Emergency & Communication System, Etc. - 01_27_1994Resolution No. 4371 January 27, 1994 Item #28 RESOLUTION WHEREAS, Section 102.010 of the Local Government Code of the State of Texas authorizes City Councils to make changes in budgets for municipal purposes; and WHEREAS, there is an undesignated, unreserved, positive fund balance in the general fund of $1,583,796; and WHEREAS, in accordance with Ordinance No. 9642, the City Manager is authorized to transfer funds between accounts, departments or programs for City purposes; and WHEREAS, the City Council deems it advisable to amend the budget and reallocate the above general fund balance in the following manner: Emergency and General Communication System $750,000 Thoroughfare Paving Reserve $150,000 Incentive Pay Adjustment $525,000 General Fund Capital Projects $150,000 WHEREAS, the City Council further deems it advisable to amend the budget and reallocate certain enterprise funds in the following manner: Electric $ 95,000 Water $ 65,000 Sewer $ 30,000 Solid Waste $ 40,000 Airport $ 25,000 Golf $ 4,000 Internal Service $ 55,000 NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT the City Manager is hereby authorized and directed to appropriate 750,000 for the purpose of allocating the City of Lubbock's emergency and communication system. SECTION 2. That the City Manager is hereby authorized and directed to appropriate 150,000 in the thoroughfare paving reserve account for the purposes of street maintenance. SECTION 3. THAT the City Manager is hereby authorized to appropriate $525,000 from the general fund and $314,000 from the designated enterprise funds and directed to amend the City of Lubbock personnel policy by adding thereto provision for incentive pay adjustments to be made to individual employees or groups of employees to encourage future superior performance at such times and in such amounts as may be directed by the City Council, which amounts may be paid as either a lump sum or prorated over the remainder of the fiscal year as directed by the City Council. Such amounts shall not become a permanent part of any employee's regular pay, but shall be only a temporary incentive pay adjustment not extending beyond the end of the fiscal year in which such incentive pay adjustment is authorized. The City Manager is hereby authorized and directed to make an incentive pay adjustment of $400.00 to all City of Lubbock full time/regular employees who have been employed one full year ending January 1994 in a lump sum payment as soon as is practicable following implementation of the incentive pay adjustment policy provided for hereinabove. SECTION 4. That the City Manager is hereby authorized and directed to appropriate 150,000 to the general fund capital projects for building renovation to Council and Codes Administration offices. Passed by the City Council this 27tH DAVID R. LANGSTON, MA ATTEST: ar-�L5,� etty Johnson, City Secretary APPROVED AS TO CONTENT: Mark Iiindman, Director of Support Services APPROVED AS TO FORM: '4" , -- -) - , , JWm C. Ross, Jr., City Attorney 7CP-cWco&cx/psyincmres rev. Febmary 2, 1994 2 TRANSCRIPT OF ITEM NO. 28 FROM CITY COUNCIL MEETING OF JANUARY 27, 1994 Mayor: Agenda Item No. 28 to consider a resolution authorizing the City Manager to amend the current pay plan by including a pay incentive provision, and change the budget to appropriate the General Fund Undesignated Unreserved Ending Fund Balance. Mr. Cass. Cass: Yes, sir. This is actually a two part resolution, as you notice from the agenda caption. The first part authorizes the City Manager to amend our pay plan to provide for these types of pay incentive provisions that I will be discussing later for either individual employees or for groups of employees in the future, and we think that's in line with some of the Council directives that we had in the past. The second part is my recommendation concerning the reallocation of year end reserves or year end balances that we realized at the end of last fiscal year. Let me quickly summarize the recommendation that we discussed last week. You will recall from the General Fund we showed a year end balance of $1,586,000. My recommendation on the distribution of those funds was as follows: $750,000 to the Emergency and General Communications System. You will recall that at our last City Council meeting that we discussed the need to upgrade our radio system that serves not only our emergency personnel but others as well. A recommendation that $150,000 be used for our thoroughfare paving reserve. We are in the process of working with the development community now on the creation of a policy that would enable the City to more rapidly meet its obligations when it comes to paving thoroughfares adjacent to new subdivisions. At the present time we are not able to do that in as a timely manner as we need to. We are looking at this as seed money. We will be bringing that policy back to the Council at a later time. Should there be problems with that particular policy, we would then recommend that this money go into our regular street maintenance funds. Also recommending that $525,000 of the year end balance be used for an employee incentive program and I will be discussing that in somewhat more detail and the remainder, approximately, $150,000 to be used for a variety of general fund types of projects, including some remodeling and relocation in the Codes area and the City Council area and some technological enhancements in the Municipal Court in the Codes Administration area and the City Secretary's department. Let me explain one thing in regard to the funding sources. The origin of this $1,586,000 because that I think that has fueled quite a bit of discussion over the last couple of weeks and I think that that discussion has been healthy but I would simply like to inform the Council about the point of origin here. Again the General Fund balance was a $1,586,000 and we are recommending that it be ITEM NO. 28 TRANSCRIPT Page 2 distributed as I pointed out. Approximately one-half of that balance was generated by an underexpenditure, in other words, City general fund departments brought their expenditures in, approximately $800,000 over what they were authorized to expend and we think that is a commendable thing. The majority of the remainder was generated by the sales tax. Now, let me point out that is not the one-half cent sales tax that was voted by the public for economic development purposes. Many, many year ago, the citizens also voted a one cent sales tax upon themselves to support general fund operations. The one-half cent sales tax is set aside in a separate reserve. So these funds were generated by the one -cent, which is traditionally funded general fund operations. The sales tax performed far better than we ever had anticipated that it would perform this year and we are very happy to report that to you. But nevertheless, that is the source of the funds. I would also point out to you with regard to the recommended distribution that none of the surplus came from the increase in evaluations that occurred this year. You will recall that when we discussed the budget with you this year, the tax appraisal district had completed a reevaluation of properties in Lubbock and this had resulted in increased tax burdens on existing property, frankly. At that time, we discussed with the Council the relative merits of reducing tax rate to account for that or the selected alternative was to apply that money to a sinking fund which would go toward the retirement of the debt on the bonds that the citizens voted back in May of last year. Again, the Council selected that particular option at the staff's recommendation. We feel that in the long run that will enable us to hold down the tax increase approved by the citizens above and below what they had originally anticipated and we think that is a good objective. Let me spend some time now discussing the rational behind my recommendation for the pay incentive for City employees. First of all, I would like to compliment the citizens of our community, both those who have agreed with this particular recommendation and candidly, those who have disagreed with it. I've received calls on both sides of the fence there, and I am glad to say that in Lubbock, Texas and our hometown that it is still a place where reasonable people can differ. I don't think that the public interest ever suffers when we can have those kind of reasonable differences and discuss them in public. I do think it is important to point out to the Council that for the last two years, you will recall, that our recommendations coming out of our personnel department for employee raises and the upgrades in our pay system have not, we have not been able to perform as we had hoped to, in terms of raising employee base pay. We have always taken the philosophy that our salaries should not be a the forefront of those with whom we compete for employees but neither should we be a the tai 1 end. We want to be in the middle of the pack. Every year we benchmark certain positions, we conduct a survey, in some cases, we compete on a national or statewide basis, and in other cases, we compete on a local basis. We benchmark those salaries, we check with other employers, with whom we are competing for quality employees to determine what they are doing. Our surveys for the last two years have indicated that we needed to raise our pay grade to approximately 7-112%. I think the Council understands that, I think our employees understand that, I think the public understands that. I would also point out to you that our revenue streams simply ITEM NO. 28 TRANSCRIPT Page 3 did not allow us to do that, and we understand that and I think our employees understand that. So, we were able to give raises or upgrade salaries, I should say, in the range of 2% per year. So 4% where 7- 112% would have kept us in the middle of the pack. In other words, our position relative to other employers, with whom we compete for employees, has fallen somewhat. We are not devastated but that's a long term trend we do not want to get into and we simply want to point that out to Council. I would also point out to the Council that over the last years, last couple of years, you have encouraged us to look at things in a different way. One thing you have encouraged us to do is to look at different ways to provide for incentives for our employees. Now, I have been very open with our employees, that I can see the day coming, in fact I think the day is here, when our traditional way of rewarding them would be no longer be financially viable. I do not think that the revenue streams that I perceive in the future will sustain the kind of system we have been able to support in the past and that is not necessarily the news they want to hear or that I want to convey to them or you, but I think that is a cold dispassionate look at the facts and I think that is what we are facing. I am very pleased that right now we are in an upswing on the sales tax, it is performing even better this fiscal year than it did last fiscal year. I would also point out to you that the sales tax is a very, very volatile source of revenue. I have seen the times when it has skyrocketed and I have seen the times when it has fallen to the floor and that is not one in which we can base our future and I simply think we need to point that out to one another. But our employees have performed very well. Have they effected all of the change that they need to effect? By no means. Have we done everything that we need to do? By no means. Have we made all the reductions that I think we can make and that we need to make? I am not willing to tell you that. I think there is more that we can do, but I do think that our employees have turned the corner. If you look at our, at Lubbock Power and Light, they continue to gain in market share. If you look at our aviation parking personnel. They came in with a plan competing with the private sector, they were able to cut their costs and throw more net revenue to the general, to the aviation fund. If you look at Mary Strange and what the Health Department is doing, we are taking the same number of employees, we are reallocating the way we spend our time, and we are extending more service to more citizens. All of these are simply illustrative of the types of things that are going on in this organization. I think they need to be recognized, I think they need to be commended. And importantly, I think they need to be rewarded. Our employees do a good job. I appreciate again very much the fact that some citizens disagree with me on this recommendation. I hope that they understand that a City, though, is an organization that runs on more than streets and on sewers and Those are very important elements but it also runs on the motivation of 1800 people and these are people that live in this community, they sit in church next to you, they sit at the United Way next to you and they are good people and they need to be encouraged and I think this is a good way to do it. I do think that we may need to look at alternative ways of doing it in the future but I stand by my recommendation, I would recomm nd it to youJ I would point out that my recommended methodology for extending this to employees would be that it be ITEM NO. 28 TRANSCRIPT Page 4 applicable to current full-time employees who have been in place one full year ending January of 1994 and of course, that would exclude Council appointees, the City Manager, the City Attorney and the City Secretary. I would be happy to answer any questions that you may have now. Mayor Bob, would you comment a little further on the fact that it is not a part of the one-half cent sales tax and you know, people, I think are confused, they think that when you say sales tax, the thing that has been in the news media is the one-half cent sales tax. Cass Right. Mayor We anticipate, as I understand, that the revenues from the one-half cent sales tax will be somewhere in the range of $5,000,000. Cass That is correct and that $5 , 000 , 000 has been set aside in a separate fund. That is not in the general fund, it is not in the electric fund, it is set aside in a separate fund. We will know the full extent of the one-half cent sales tax in early February. By that time we will have our December sales result report from the State Comptroller. We will then be coming back to the Council with a recommended disposition of those funds. That is separate and apart from the action that I am asking you to take today. You may recall that we discussed that in Ruidoso and that we were anticipating recommending to the Council a combination of the retirement of the debt on the prison hospital and setting up additional reserves for economic development purposes. Mayor And with respect to those funds, we will still use the procedure that we told the public that we would use in the first place with regard to any objective use of those funds. That is, that we would publishnotice in the newspaper for two weeks before the public hearing, that we would then have a public hearing and at the next Council meeting it would require a 2/3rds vote to use the money in the recommended manner. Cass That is correct. Mayor Now, what about the reevaluation. People receive notices that the taxes would become delinquent on February 1st. Their taxes have gone up because of the reevaluation. Is any of that money being use in this recommended pay increase? Cass No, sir. Just to recover a little ground that we discussed this summer, ad valorem taxes generally come, increases in ad valorem taxes, generally come from two sources. One would be new construction and the other one would be reevaluation of existing property. In other words, the house that you have owned for 10 years may have increased in value and under State law we need to reevaluate that and to tax it at its current market value rather than at a value in which you originally bought it. The latter phenomena is the situation which occurred last year. The Tax Appraisal District went through, reevaluated all existing property and in many, many cases, your ITEM NO. 28 TRANSCRIPT Page 5 evaluations increased. I know that mine increased and the citizens, rightfully so, protested that. They wandered whether or not that was a tax increase by another name. We discussed this with the City Council during the budget this year. We recommended that rather than reducing the tax rate which was another viable alternative, that we take that money, we place it in a sinking fund. Now the purpose of that sinking fund is to pay down the debt on the bonds that the citizens voted upon themselves in May of 1993. We have projected that the tax rate would need to increase several cents. By taking this particular approach, we feel like that over the course of those bonds we can actually raise the tax rate to a lesser extent that we had represented to the public back in May. Mayor This $1.5 almost $1.6 dollars is actually surplus that has accrued as a result of the fiscal year that ended September 30. Cass Correct. Mayor The reevaluation of the property relates to the fiscal year that we are now in and won't end until September 30, 1994. Cass That is correct. Mayor Are there any other questions of Council members? Patterson This proposal would also include those retirees ? Cass We would need to work on the details of that. I am not sure exactly, again, what the State law would allow but we would need to check on that, sir. Mayor Because there has been considerable amount of deliberations in the public and there is a lot of interest, I would ask if there are members of the public present that have questions or would like to present comments at this time before we take a motion on this issue. Mr. Puryear. Puryear Yes, I am Cecil Puryear. I just kinda feel, talking about this sinking fund, I feel kinda sinking too. It seemed like the whole idee of saving money was to reduce tax rates when we were originally trying to figure out ways to save money. Well, this looks like to me that this money come in all at once we are finding another way to spend it. This doesn't do anything for the taxpayer. These citizens that work for the City they pay taxes too. Why don't we lower the citizens' taxes? That gives incentive to people to move into this community and you push the taxes so high the people can't afford to pay them then they can't move into our City. I move people out of Lakeridge every day, well, not every day, but I mean all the time because all at once their payments jumped up two and three hundred dollars in a year. They reappraised their property. Mr. Neugebaur knows that, he knows the money is being lost on houses being sold because people just have to get out out there. It doesn't seem to be like yall have ever really grasped the fact that we are spending too much money to run this city. I know it is nice to have the best of everything. I would ITEM NO. 28 TRANSCRIPT Page 6 like to have the best of everything too. But reality is there is vast number of citizens in this City that can't afford the best of everything so they resent the fact that yall are trying to have the best of everything. We would like for you to take care of our essential services and back away from all this other fringe stuff. This is what we are talking about in saving this money that looks like every time you get a million five and what have you, now you are going to have this half cent sales tax. We need the pay reduce the citizens' tax load. We have got plenty of money set up in sinking funds around here to take care of any emergency that will come up. Let's quit soaking the taxpayer. He's about saturated. The fact that the people on fixed incomes, there is no place for them to go out and get this extra money but gall just keep on raising service charge, taxes, reappraise their property, and you reappraise property and say well it is worth so and so. In my case, there ain't no way that I could sell my property for what you say it is worth. I can't come within $20,000 selling anything I got for what they've got it appraised for. So, it has been a way to get money to spend the $154,000,000 to run this city is what it is and we need to drop, instead of figuring out ways to spend all this money, we need to figure out a way to reduce the taxes on the taxpayer of Lubbock. That's what you all are about. It is not all this fringe stuff you are going out, arenas, kinda stuff. We need to save the taxpayers money so that t ei y can survive. And that is all I have to say. Mayor Thank you Mr. Puryear. Mr. Winn. Mr. Winn Mr. Mayor, members of the Council. I don't know what you all feel like quibbling about whether it came out of this last half cent sales tax or a cent sales tax that has been given in the past. What the impression is among the citizens of Lubbock is that you overbudgeted, you've got a surplus and you say let's split her up boys and we'll soak them again next year. That's what the people feel like is happening and that's what the people feel like they been betrayed. They don't like quibbling. They like it layed out and make cuts and not say let's split her up boys and we'll soak them again. Thank you. Mayor Ms. Ward. Ms. Ward Some of those comments are mild compared to some of them that I have had I guess from quite a few people. A lot of people that are not in our taxpayer group and lot of others have called me and I have tried to be as accurate and give them the facts, you know, as the City Manager has relayed this morning. I guess because of an incomplete quote of mine in the paper, not an inaccurate quote, but one of my members even suggested to me, did you tell the City Council to do this pay increase, this bonus? But, nevertheless, a lot of people don't understand the funding system and I guess, just the way it is done in Accounting shows surpluses in one place and shortages in another and a lot of people think that is a little bit of a shell game, I think, as well. One of the things, I guess, that bothered a lot of people other than the, I'll go into a little bit on the pay increase, the bonus, but one of the other things that I think a lot of people resented, ITEM NO. 28 TRANSCRIPT Page 7 even though I understand absolutely the necessity of the communications upgrade, it's more or less a feeling out there that the public has that we vote on things and then after the vote the elected officials and unelected officials say you didn't understand what you were voting on so we are going to go ahead and do what is best for you and it leads, in the long run, I think, to apathy and people feeling like there is no use in either voting or coming down here to testify because I have quite a few people say, well, why bother, this is a done deal anyway. You know, I am personally definitely don't begrudge the frontline rank -in -file workers, I guess I watch you all a bit closer than a lot of other people and therefore, I think a lot of them deserve and need this $400 bonus. I think because of the transition that a lot of the people who have been here for quite a while have had to assume a lot more duties and probably cover some more territory and I applaud the transition that you are making in that regard. Judging from the City employee salary comparison approximately 439 of the 1800 City employees fall into the category between $25,000 and $30,000 and just putting a quick calculation to that, that is about a 1-112% increase. I know each year that the salary surveys are compared with other local employers, I haven't seen the latest group these were taken from but in the past quite a few of those have been other government entities and I realize that is a group you all compete with for customers, I mean for employees, but a lot of people in the private sector, myself included, have not had a pay raise of even a 2% or 1% in the last several years, let alone 7-112% and I have questioned in the past are the same ones used in comparisons each year and in the past when I have looked at it, it seems like one year one group will be getting a 3 or 4% raise and another year another one is so I am not sure that the 7-112% is complete. I am trying to make this short. I think that in the future, I guess the main suggestion that we would make as a group, is that merit bonuses on the savings that are made in various departments which would be much preferable and would really give more incentive to the employees to find ways to save within their own departments and it would make them more innovative in finding ways to be better stewards of the tax dollars. As a group, you know, if I were just expressing the sentiments of a lot of people who have contacted me, it seems our group grows sometimes when some of these things come up, but nevertheless, you know, we make those kinds of suggestions and hope that you will keep it in mind, because out of people's pockets, they are not really that concerned or don't really understand the difference in their sales tax, their appraisal hikes and all these other things so we appreciate you considering in the future giving merit bonuses, you know, on the basis of actual cost savings. Patterson Ms. Ward, you didn't answer your question. At our first setting didn't you endorse this effort? Yes or no, don't deliberate. Yes or no. Ms. Ward What I said Patterson Yes or no. Ms. Ward in being interviewed ITEM NO. 28 TRANSCRIPT Page 8 Patterson Yes or no. Ms. Ward that I do not begrudge the front line rank -in -file employees, in fact, I much prefer a flat bonus because it benefits the lower paid employees over a percentage increase which would benefit the higher administrative staff more. So there is not a yes or no answer. Mayor Ms. Ward, if you were voting on this issue today how would you vote? Yes or no. Patterson Since everyone called you and you in the know? Ms. Ward Oh, you are putting me on the spot. I don't know whether (laughter) Ms. Ward I am not privy to the information that I guess you all have. I would probably send it back to the drawing board to see if there is a way to merit the employees and the departments that have had to actually assume more duties due to less personnel but that is not a yes or no either. Mayor So, your answer is you would send it back for further study. Ms. Ward I probably would. Ms. Ward, if I may add, to be sure on your current comments, that you are not objectionable to a bonus and city bonus plan for employees. Ms. Ward No. You are not objectionable if that came out of savings. That is what I understood you to say, correct me if I am wrong. Ms. Ward There again, the fund system is sometimes a little bit distorted. Just to be sure I understand, you said if certain departments were able to cut costs and save money, then those people in those departments should be able to take part in any type of incentive. Ms. Ward They should be able to take part in the surplus that is accrued, Right. In getting away from all the symatics that has been explained up here, I hope everyone in the audience understands exactly where those funds came from. Ms. Ward I do. In reality, there was $800,000 in savings from personnel and we are talking in the area of $500,000 in bonuses. So, you are not disagreeing with the principal and I am not sure I know what you are disagreeing with except --- you agree with the bonus plan, you agree ITEM NO. 28 TRANSCRIPT Page 9 it should come out of savings, in fact, that is what it was, unless it is the distribution of the way it was done. I don't know what you are disagreeing with. Ms. Ward Possibly, distribution. I was glad to hear and I didn't know until this morning. I have had several people comment, even City employees comment that they hoped that this was not going to go brand new employees and I was glad to hear that, you know, they were people who had been here a year and had gone through this transition period because I know it has been tough for a lot of people. But. I don't have that much disagreement. That is speaking for myself. The people maybe that perceive that I represent them had a lot more problem with it possibly than I did but I think it is because of the misunderstanding of things. Patterson I never did get my yes or no answer. Ms. Ward Personally - yes, as a taxpayer association, I am not sure that they would agree with me. Mayor Mr. Baranda Baranda Mayor Langston and honorable members of the Council, I stand here as a citizen who has moved from , Texas to Lubbock seven years ago, January 17, 1994. In the greatest book, the Bible, says give and it will be given to you. Good measure for us down, shaken together, running over, they fall into your lap. For by your standard of measure, it will be measured to you in return. Last night before I retired, I came across a parable of the man, the snake and the frog. We can picture a man look over his side of his boat and saw a snake with a frog in his mouth. Feeling sorry for the frog, he reached down and gently removed the frog from the snake's mouth and let the frog go free and now he felt sorry for the hungry snake. Having no food, he took out a flask of bourbon and poured a few drops into the snake's mouth. The snake swam away happy. The frog was happy and the man was happy for having performed such good deeds. He thought all was well until a few minutes passed and he heard something knock against the side of his boat and he looked down. With stunned disbelief the peasant man saw the snake was back with two frogs. Gentlemen, the parable carries two important lessons. You get more of the behavior you reward. I say that again - you get more of the behavior you reward. You don't get what you hope for, ask for, wish for, or beg for - you get what you reward. Come what may, you can count on the people and creatures to do the things that they believe will benefit them most. Number two - in trying to do the right things, it is so easy to fall into the trap of rewarding the wrong activities and ignoring or the right ones. The result is that we hope for a unwittingly reward B and wonder why we get B. The following story provides a classic example. A young machinist asked for three days vacation to go deer hunting. His supervisor refused the request because the department was very pressed and was being forced to work overtime and on Saturdays. The machinist who had the record of tardiness came to work thirty minutes late and the supervisor told him, if you work thirty-one more times this mont1i-you will be ITEM NO. 28 TRANSCRIPT Page 10 suspended for three days without pay. Guess who was late the next day. The machinist saw the monetary trip as an opportunity so he showed up late. He was suspended, went deer hunting and got what he wanted. The management applied the proper disciplinary procedure but the work did not get done. By now you understand that there is the greatest management principle, I quote: the things that get rewarded get done. In the past few weeks three letter came out in the Letters to the Editor of the Avalanche Journal and also on the 24th of this month there was an editor that was devoted to this subject - Bonus, Another View and let me conclude and let me read what it was saying. Any question in our minds is why the City Manager is proposing an across the board $400 bonus, write that down, based on merit. I repeat that word - one based on merit. It seems better to say employees "everyone will get the minimum bonus, say $200 but those who merit more will receive more." I repeat that word -those who merit more will receive more. To us, this would be more equitable way in which to reward employees who have contributed to a successful year at the City of Lubbock. I would like to mention the word equitable because as in the words of Mayor Langston during our meeting with the Human Relations Commission, equitable is one of Councilman T.J. Patterson's favorite word in lieu of I submit that generally we are a nation of people in need of new perspective. Come Sunday, you and I or most of us will watch the Superbowl, a match between the Dallas Cowboys and the Buffalo Bills. Perhaps at this time I would like to share with you what Jimmy Johnson would say on the subject of getting the best out of everybody. Number 1 - give them responsibility. Give your people the feeling that if they don't do the job, it won't get done. Also let them know that when they accomplish something, they will share in the accolades. I suppose this is what City Manager Bob Cass is precisely doing by the proposed to this Council on a across the board $400 bonus. Number 2 - let them know that you care. Having enough involvement with your people so that they know that you are interested in each of them individually and that you are supportive and loyal. Finally, guide them to make decisions. Give people enough guidance to make the decisions you want them to make. Don't tell them what to do but encourage them to do what is best. Ladies and Gentlemen, you and I are in a superbowl today. Superbowl because we are talking about people you have put their best efforts in this City government. I feel that the encouragement of the words of Dallas Cowboys head coach Jimmy Johnson is in order. I thank you Mayor. Mayor Thank you Mr. Baranda. Any further comments? Yes sir, if you would state your name for the record. W.L. McFeeney Mr. Langston, Council. Back in 1960 I went to work for Piggly Wiggly which was Shoprite Foods. I worked for them for 19-1/2 years and I never asked for a raise. And then all of a sudden everybody got greedy, they went into bankruptcy and shut it down. I never got and since then after having worked for one company for 19-1/2 years, I was throwed out on the streets to look for a job. My daddy always told me when you hire out you know what the man pays and you give him a days work. If you don't want to work for what he pays, don't hire out. I ITEM NO. 28 TRANSCRIPT Page 11 think the City is doing a marvelous job with their employees, getting a 2% raise every year, getting their benefits. Since 19-1/2 years, I haven't had a 2% raise every year. And if I run my business on a 2% raise every time the City gave everybody a raise, the State got in my hip pocket for taxes, I would be out of business completely because I couldn't go to my customers and say look the State give us a 10% tax increase I am going to have to go up on my services 10%. Everybody in this room pays taxes, I assume. Then the taxpayer should be cut some slack. Give them an decrease in their money. All you are doing a good job in paying their taxes. So why penalize them every time you turn around you want them to go up on their taxes. Like I say, my daddy always instirred on me regardless of who you work for if you hire out for 8 hours you give them the best that you've got. I've never asked for a raise for 19-1/2 years and I got promoted, I got my raises and I got my benefits and it wasn't because at the end of line I was going to expect. As far as a bonus for 19-1/2 years, we got a turkey on Christmas. That is what we got for a bonus. So take under consideration what you are fixing to do. No man should be bribed to work. Back in 1960 if you didn't work, they replaced you because there was an old boy right in behind you who would take your job. And it is so today, look at unemployment. If you don't do your job, get a replacement. run a business and if he come in there one day and his people deciiecT they didn't want to work, he's not going to sit there and hold their hand, he is going to replace them. So think of the taxpayer we have gone just about our limit. And I appreciate the opportunity. Thank you, Mayor. Mayor Thank you. Any further comments. Hernandez I would like to make a comment, Mr. Mayor. I have been told, it has been suggested to me by various members of the Council at one time or another that it is usually best in these types of situations not to respond because it just makes the process longer. I feel that I have to respond. It seems that when Bob Cass made his recommendation at the last work session I felt that the Council members were tripping over themselves to praise his recommendation and go for it 100% and even though it is not politically expedient thing to do and even though some of us are up for reelection and therefore not politically expedient I personally believe that the City employees do deserve a raise and it is the citizens of Lubbock who are benefitting from all of their hard work either directly or indirectly. So I can appreciate Ms. Ward, Mr. Winn, Mr. Puryear, Mr. Baranda and this last gentlemen's comments but I just respectfully disagree. I don't know if I will be here come after the May election but at least I know as a result of today's vote I will be able to sleep tonight because this is an organization made up of 1800 individuals who they deserve a certain amount of loyalty from us as well. I agree with the across the board bonus. I at this time go ahead and agree with the one year term limitation in order to be able to receive that. And I would tell those facts who are advocating the merit system which I think the City of Lubbock will ultimately going to, the merit system, if you are not careful can be manipulated and that is my concern with the merit system. Thank you. ITEM NO. 28 TRANSCRIPT Page 12 Every time you gentlemen use the word Victor I look around to see. I am Victor Carrigan, you know, I don't doubt that many, all of the City employees do deserve a raise, I would however like to point out that the economy in this County and even this city depends largely on agriculture, education and military, Reese Air Base, Texas Tech and I inherited half the farm, sells his crop for about T-47per pound for cotton and it costFi—m about a $1.00 to raise it and I hope that our economy can improve and I will be careful what I say, T.J., but I do thank you for letting me speak and I will do some thinking when this comes up again. Thank you so much. Mayor I think it is incumbent upon members who set upon this dais to let the public know why they are voting a particular way. Why they feel a particular way on an issue and what has persuaded them to vote in a particular manner. I think as the City Manager pointed out in his comments, that the public deliberations have been healthy and it is always the goal of this Mayor and this City Council to make sure that we do encourage public debate. That is why we sometimes have discussions in work session before we come out here and vote on in upon the dais and sometimes it is several weeks before we actually take a formal action on it, as has been the case in this particular initiative. What we have been trying to do for the past twenty months after this City Council took the dais, is to place some free enterprise techniques into the public sector to encourage the public sector to realize that government has to be run like a business and that is, to a certain extent, a change in philosphy. We want to encourage that whenever public employees come before us and submit their budgets that that is what it is and that it is not a goal that they hope to obtain to spend that much money but it is a budget that they hope to live in and within and so if they come and say they need $100,000 and they have two months left in the year and they have $80,000 they have spent, $20,000 they want to expend or could expend but that they don't just hurry up and spend that money. The idea is that you try to encourage savings and that is what has transpired here. People put budgets in place, they cut costs, they try to cut corners, and they try to do what we told them to do and as a result they saved $100,000. If we just say well, we're just going to find someplace else to spend that and we're not going to let you share in the rewards, then there is no incentive to do that. They'll just increase their budget next year and to make sure and perhaps they will be able to purchase some of those items that they wanted. The idea is to put free enterprise techniques into the public sector. We are not however, and I don't believe the City Manager intends to change the mandate which we had given them. That is, to reduce as a percentage of the budget the amount of personnel cost that we expend annually. We want to keep that mandate in place, but while we have made that mandate and while we have held the line for two years on raises, giving only a 4% increase over those two years, we need to commend the employees for doing that exactly what we told them to do. We want to encourage the work force to continue these efforts. It is very important in the interest of the citizens of Lubbock to make sure that when the policeman is called or when the fireman is called or when a snowstorm that hits here and the road crew have to go that we have a work force that has morale and believes in the public charge that has ITEM NO. 28 TRANSCRIPT Page 13 been given to them and if they do a good job they will be adequately and appropriately rewarded. We have to come to management style which fits the times. A management style of the 1950s and 1960s simply will not work in the 1990s because people have different attitudes and different priorities and different perspectives. And your City Manager and your City Council has recognized this and we are going through a transition and yes, we are "reinventing" government. That is part of this effort. This is a one-time bonus to reward employees for a job well done. It is not to be taken as a precedence but it is to be taken as a pat on the back and so I support the recommendations of the City Manager and will vote in favor of the resolution. Patterson Mr. Mayor, I have heard several people say this is a raise, it is not a raise, it is a bonus. I am glad that you brought that out. Here is my position on that. Two weeks ago when we left from this hall we went enthusiastically in favor of this. As I heard from the members of this Council it reminds me of when I was a kid when mom said you do well you will get something. The worst thing that could happen to me not to receive what she said she was going to give me. I think we need to stick to our guns in what we believe. We're elected officials, we've got to take the heat. I from the heat now, I understand it. I appreciate the input but as ictor I could not sleep with myself if I reneg on my enthusiasm that I had several weeks ago. I am the senior citizen, in tenure, Bud, not chronologically, on the Council, and I have seen a lot of things happen, I have seen some change, but I think one thing that really upset the effort from my perspective was the citizens are taxpayers not understanding what these monies were about, they were not the half cent sales tax that we passed, I think that was the problem. I received some calls and I stand tall, I will not waiver on my posture of a few weeks, I will stand vertical and I will take the heat because I believe that Lubbock is moving forward and with this kind of attitude we will get better employees, more employees, we have some great employees, we need some other great employees who will take the place of those retiring so I too, Victor, will stand tall in the saddle and I won't waiver and I will go home, 2501 Globe Street, play with the dog and go to bed and sleep good that I did what was on my mind, that I did pray over this last night. So I congratulate you, 1800 employees or better, of what you have done and what you will continue to do for the citizens of the 110 square mile area. That is all I have got to say. Mayor Mr. Aderton. Aderton Well, this discussion about raises causes me to relate my own experience when I first came to Lubbock. That was during the depression days and I came to Lubbock because I was referred, Lubbock was referred to me, to come down here, I might find a job. So I went to one of the local utilities, applied for a job. They told me what was entailed, what the job required, the manager said we could use you, we can start you at $90 a month. I thought, well that is not much of a salary but I said I'll take it. He said you report for duty in Plainview on Monday morning. This was on Saturday. I said thank you and there was a fellow from Amarillo who was with the company but had driven down here so I got a ride from here up to Plainview to r ITEM NO. 28 TRANSCRIPT Page 14 report to work for $90 a month. Before I got out of town, I went to a restaurant to eat lunch with the guy who was going to haul me to Plainview and while we were eating lunch, the manager that hired me said Aderton, we have been looking over your application and your resume a little closer. We've decided to start you at $95 a month instead of $90. That was the first raise I ever got before I left town. After I had been with the company for a year, I was walking out of the office one night and he stopped me and he said Aderton how come you haven't been in asking for a raise? He said everybody else has. I said well, I thought if my work was satisfactory I would get a raise without having to ask for it. So he gave me a $10 raise. I got raised $105. So this bonus is not a raise, they didn't have to ask for it, it was given to them because we think and their record justified them getting the bonus so I don't think that is a misuse of our public funds. I am very proud of the staff the City of Lubbock has. I found them very cooperative and very anxious to do a good job and after all that is what we are doing when you work for the City you're serving the public so I don't feel any qualms having voted for dispensing this bonus, for it a raise or bonus or whatever you want to call it, do it when you can. When you can't that's what comes under the head of good management, I think. ,�y��e.- I hadn't planned any remarks today, but gentlemen, when I took this job what I gleamed that the citizens were saying was that we don't want business as usual in this city, we don't want business as usual in government and I believe sincerely that this Council has tried to follow the directions that was given by the citizens of this community. We have tried to be as informative as we possibly can. We have put the information before the citizens of this city. Sometimes we failed to do it but it was certainly not a lack of effort on our part. I think sometimes that we forget that we have so much information in our hands that we fail to fully explain something to the public because we feel like that it is just out there and they should understand it. But back to business as usual, they said run this city like a business. Most all of us, without exception are in the private sector and run businesses ourselves. We reward those good employees. In an organization is as only as good as the people in that organization. You can have organizational charts and you can redefine what you are going to do in this chain of command. That is not what makes an organization, an organization is made up of its people. People who are willing to do a job to the best of their ability. We put in these private sector type mentality and it is very difficult, ladies and gentlemen. You know, I think I was under the assumption that you can run a municipality just like you can a business and I am telling you as I have learned this last two years, in some ways you can and in some ways you just cannot. But I rewarded my personal employees and I feel like I need to reward the employees of the City of Lubbock. They've gone through some tough times. They've gone through a change in the way we do business down here. They've tried to work with us. They've supported us in most cases and we owe a duty to our employees as well as the taxpayers and citizens of Lubbock and I personally think we have done a good job in this matter in looking at both concerns of the taxpayers as well as the employees. I am too going to support this and I have had a few calls r II ITEM NO. 28 TRANSCRIPT Page 15 but surprisingly I have not had very many calls and I don't think there is a general uprising of the city along these issues. But again, when you as citizens say we want you to run this as a business, you know, and we have tried to put those private sector type business principals in there and they say wait a minute, you can't do this, this is a public deal, this is a municipality, we just want you to run this like a business in some ways but not in all the ways. Remember that, remember what you tell us and when we try to do what the citizenry wants, you know, to the best of our ability, remember what you tell us before you criticize. Thank you. Neubebaur The hour is late and I'll be brief. I think that, I wrestled with this a couple of weeks since we talked about it but I think initially and today I still support the action we are going to take here today. I think one of things that begin to think about a little bit is because two years ago I initiated some comment about the increasing percentage of our personnel costs in relationship to our general fund budget and I had to ask myself am I selling out on that concept and the answer that I finally came up with was no, I'm not, I think we've made some strides in that area and I think that the organization is committed to continue to address that. To manage is to manage the resources that are available to you and one of the primary and largest expenditure that we have to deliver the services that we deliver to the citizens and taxpayers of Lubbock is the human resource and just like we oil and repair our machinery and our streetsweepers and our motorgraders and keep oil in our police cars, we must make sure that we have well oiled and well groomed employees and we may have to make sure that they are the best that they can be and we have to give them the resources and the ability to do that and a car will run with gasoline and it does not need a lot of motivation to run other than the resources to run, but people are a different business and I believe that this is a way that we can improve the resource that is a primary contributor to our ability to deliver these services. I am pleased that the City Manager is going to continue to work on a more incentive directed plan. I think that it is imperative to further oiling our human resource machine and I think it is appropriate that the one year of service is also made a part of the criteria. I would not make this part of the motion but I would think also that, you knoany employee t a may e received high unsatisfactory gradings on his last evaluation or he may be on some kind of probationary status that maybe his or her bonus would be delayed until those things were being corrected to the satisfaction of the supervisor so that we can truly can say to the greatest extent that we could that we made this a bonus for good service and I appreciate the remarks that the other Council members have made and I will not elaborate on those because I share some of the same views. Cooke There really is not a whole lot that has not been said on both sides of this issue. I agree alot with what Randy just said, in fact, I agree alot with virtually everybody said at this dais. I anticipate that there will be bonuses in some form in the future. I don't anticipate personally voting for another flat across the board bonus. I think it should be more directed than that and if used as an incentive for ITEM N0, 28 TRANSCRIPT Page 16 individual accomplishments but I will the motion to adopt these two items. Patterson I will second that motion, Mr. Mayor. Mayor I have a motion by Councilman Cooke and a second by Councilman Patterson that we approve the recommendations of he City Manager with regar an also with regard o amen in -fffe current ay lan by including a pay incentive prov'sion. is -there any further questions, comments, or n. uestion has been called. All in favor say Aye, any opposed by Nay. This item passes 7 - 0.