CITY OF LAREDO
SPECIAL CITY COUNCIL MEETING
CITY COUNCIL CHAMBERS
1110 HOUSTON STREET
LAREDO, TEXAS
11:00 A.M.
MINUTES
M97-R-33 SEPTEMBER 27, 1997
I. CALL TO ORDER
With a quorum present Mayor Saul N. Ramirez, Jr., called the meeting to
order.
II. PLEDGE OF ALLEGIANCE
Mayor Saul N. Ramirez led in the Pledge of Allegiance.
III. ROLL CALL
IN ATTENDANCE:
SAUL N. RAMIREZ, JR., MAYOR
JOSE R. PEREZ, JR., COUNCILMEMBER, DISTRICT I
LOUIS H. BRUNI, " , DISTRICT II
ALFONSO I. "PONCHO" CASSO, JR.," , DISTRICT III
CECILIA MAY MORENO, " , DISTRICT IV
ELISEO VALDEZ, JR., " , DISTRICT V
JOE A. GUERRA, " , DISTRICT VI
MARIO G. ALVARADO, " , DISTRICT VII
CONSUELO "CHELO" MONTALVO, " , DISTRICT VIII
GUSTAVO GUEVARA, JR., CITY SECRETARY
FLORENCIO PENA, III, CITY MANAGER
JAIME L. FLORES, CITY ATTORNEY
Cm. Casso joined the meeting at 11:05 a.m.
Motion to waive the rules of order and item #2 until the end of the
meeting.
Moved : Cm. Guerra
Second: Cm. Bruni
For: 8 Against: 0 Abstain: 0
IV. INTRODUCTORY ORDINANCES
2. Ordinance approving the 1997 ad valorem tax rate for fiscal year 1997-
1998, and to provide for the levy and collection of general and
special ad valorem taxes for the City of Laredo, and providing for the
levy and collection of alcoholic beverage taxes in accordance with the
Laws of the State of Texas.
Florencio Pe¤a, Interim City Manager, gave an overview of the
effective tax rate for FY97-98 illustrating the following figures:
Total Revenue Increase:
$20,550,142 Total Tax Levy Proposed FY1997-98 19,100,489
Total Tax Levy FY1996-97
1,449,653 Revenue Increase
$ 862,764 Increase due to Improvements
49,844 Increase due to Annexations
537,046 Increase in Revenues
$ 1,449,654 Revenue Increase
Proposed Tax Rate:
$0.523413 Effective Tax Rate FY1997-98
1.03% 1.03 Times the Effective Tax Rate
$0.539900 Proposed Tax Rate FY1997-98
Total Tax Revenue Increase:
$ 1,449,653 Total FY1997-98 Revenues
19,100,489 Total FY1996-97 Tax Levy
7.59% Total Levy Increase
Increase Over Previous Year's Actual Tax Rate:
$0.539930 Proposed FY1997-98 Tax Rate
0.526766 FY1996-97 Rax Rate
0.013164 - 2.50%
Phyllis Colon, Tax Assessor/Collector, publicly read the ordinance.
Motion to adopt the ad valorem tax rate of $0.539930 for FY-1997-98.
Moved : Cm. Perez
Second: Cm. Alvarado
For: 5 Against: 3 Abstain: 0
Cm. Perez Cm. Bruni
Cw. Moreno Cm. Casso
Cm. Valdez Cm. Guerra
Cm. Alvarado
Cw. Montalvo
Ordinance Introduction: City Council with the exception of: Cm. Bruni,
Cm. Casso, and Cm. Guerra.
3. Amending Chapter 2, Article II, Division 6, of the Code of Ordinances
of the City of Laredo, entitled Pay Administration by suspending
Sections 2-87.7, Paragraph (d), numbers one through seven, for Fiscal
Year 1997-1998, and adding a new Number Fifteen to Section 2-87.7,
Paragraph (d) by adopting a revised pay schedule with effective dates
of implementation of October 1, 1997, April 1, 1998, and September 30,
1998.
Florencio Pe¤a, Interim City Manager, explained the pay plan calls for
a 5% to all employees on October 1st, 2-1/2% on April 1st, and a 5% on
September 30th which upgrades the pay plan by 10% by the end of the
fiscal year. He added council has been very aggressive in upgrading
employees fringe benefits over the last two years. Included in this
budget is a 2 1/2% increase in our retirement program effective
January 1st to come to a competitive retirement program and added the
ordinance is still pending to come before City Council.
Mayor Ramirez questioned if this contemplates the freezing of hirees
for six months into the next fiscal year and do we freeze all step
increases for a minimum of 18 months?
Mr. Pena answered it does not, they propose to fund this plan through
salary saving that they had throughout the year. They would like to
note that the impact on the property tax next year is approximately
2.5 cents, so a 4.7% tax increase would be required next year based on
current values in order to fully fund this plan next year.
Dan Migura, Administrative Services Director, went over the figures
that Mr. Pena had presented. He stated that they are postponing or
suspend any annual increases/annual review for the next 12 month.
They are adding a new pay table effective October 1st.
Mayor Ramirez asked if they are suspending any pay increases for the
next 12 months?
Mr. Migura answered yes. In lieu of that they are proposing a 5%
across the board effective October 1st, 2 1/2% across the board in
April 1st, and 2 1/2 across the board on September 30th for a total
increase in our overall pay plan of 10%. He said the cost of the
additional proposed pay plan for 97/98 is $823,621 which is in
addition what was already budgeted $885,493, the cost impact for
fiscal year 1998/99 is a total of $1,709,114.
Cm. Perez stated that a fact that they need to consider is that this
pay plan has not been upgraded and this is why this is going to cost
us more, and if they wait more time then it will cost a greater
amount.
Mayor Ramirez stated for the record that it is this City Council that
would be taking the most difficult step to bring the pay plan to where
it needs to be. What has happened is that during the last six (6)
years they have had across the board increase every year, except what
was happening was that it was not the plan that was being increase and
the 5% was being used whereas some employees were getting 2%, some 4%
or even 5% or more, and not everybody was getting a 5%. He added that
because some were growing and others weren't this was what was
happening to the pay plan. What they are doing under this
recommendation is a real increase come October 1st, whatever the base
pay is multiplied by 5% and multiply that by 2 1/2 by April 1st and 2
1/2% on September. He concluded that it will be the plan and not the
positions that will be increased. Merit increases will be suspended
during the next 12 months.
Mrs. Linda Cantu stated she has a problem with this proposed plan,
that the last 2.5% in September 30th will not be actually be given for
this fiscal year, but until next fiscal year, it is only committed
this year.
Rosalinda Garza, representing city employees, stated that they were
against the pay plan and recommended the following three options:
(1) 15% total increase for FY1997-98, with 7-1/2% October 1st plus 7-
1/2% on anniversary or September 1st or 30th of 1998 followed with
the merit increase plan.
(2) $2,500 increase for each employee to upgrade the pay scale
effective October 1, 1997 or the anniversary date. (3) 10% as of
October 1, 1997 and continue with the merit plan.
Mayor Ramirez questioned what is unfair about the 10% they are
proposing right now.
Mr. Garza stated she would like to see the 10% implemented as of
October 1st.
Mayor Ramirez explained that if they do this, this might mean cutting
on positions, equipment, and activities that we currently undertake.
The monies are not there as of October 1st, to do it for 12 months
unless this council is willing to raise the taxes beyond the effective
tax rate. He added that what they are proposing is not a perfect
plan, but its at least a step in the right direction. He added that
by doing this everybody's anniversary date is going to be October 1st,
meaning that come next year there won't be employees getting 2%-5%, it
will be whatever the next City Council decides to approve.
Cm. Perez stated that this council is then committed to September 30,
1998, so the other Councilmembers coming on board can make
arrangements and commit for 1998/99 aside from the 10%.
Mr. Pena stated that during budget time they will be analyzing how
much they can afford the following year. This ordinance suspends all
anniversary dates, there will be no step increases under the ordinance
provisions.
Mayor Ramirez suggested to suspend all hirees for six months, let
everybody catch up and at the same time it will afford us the
opportunity to consider as a possibility on April 1st when the 2 1/2%
comes in an additional 2% at that time based on the saving we might
have incurred from the freeze on
the hiring. He wants staff to look at the vacant positions and come
back with recommendation as to which ones are critical and which one
can be frozen. He said the 10% is the solution for the long term, but
he wants them to see what can be done for the short term as well. He
wants staff to analyze those positions and hold them off.
Mr. Pena stated they will address it to some extent, but not fully
(not until at least 9/30/98) because all they are doing is 5 and 2.5.
The other option that they might consider is that right now there is
authority to hire based on skills or education everywhere in the pay
plan, but that we limit all hires to step one. He added if we do this
we are still not
competitive anyway. He does not recommended freezing positions.
Mayor Ramirez stated most of those positions have not been filled in
three months, so if they were critical something must be going wrong.
He wants Mr. Pena to come back and tell council which ones are
critical and which ones are not, and if one becomes vacant that is
critical that he let council know.
Cm. Bruni wants to see if staff can come up with some funding sources
of things that can be cut off that are not critical and see what the
additional income from future annexations to do option 3.
Mayor Ramirez stated that the reality is if they have to come up with
$4 million now, people would have to be laid off and they don't want
that.
Cm. Alvarado spoke on the issue and said they are committed to work
with the employee and do whatever is possible within the budget. He
concluded by saying that they will continue working to better the
salaries.
Cm. Valdez stated they are doing their best to give
employees the maximum that they can, the majority of them will be here
next year and committed to bigger increase possible next year and
stands by that commitment.
Cw. Moreno questioned if next year's council will decide to further
improve the step by going and improving the steps, if whether to allow
for merit increases/step increases to take place or any other option
that staff brings then. Is that a decision to be made at that time?
Mayor Ramirez stated if we are able to generate an additional $250,000
in savings then it may be that at that time they may consider that
instead of being a 2.5% accelerating it to by adding the 2.5% that is
proposed for September 30th to April 1st and everybody gets their 10%
by April 1st instead of September 1st which is going to be guaranteed
anyway.
He stated that the plan that is up for today is guaranteeing a 10%
total cumulative by the end of the year, by freezing if we do freeze
these positions, and we see the money generated is enough, his
suggestion to council is to consider that freeze so they can
accelerate the last 2.5% that is guaranteed for September to April
1st.
Motion instructing staff to bring back a list of vacant positions with
their status as critical or can be suspended for six months and this
council upon looking at that list will make the decision on whether to
freeze them or not and that this introduce the ordinance.
Moved : Cm. Bruni
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
Ordinance Introduction: City Council
4. Amending Ordinance No. 92-O-113 known as the Southwestern Bell
Telephone Company ("Telephone Company") franchise ordinance by
amending Section 4 to extend the franchise term for a period of six
months from the date of expiration of September 30, 1997 until March
31, 1998 to ensure that the telephone company continues to provide
telephone service in the City pending the grant of a new franchise.
Ordinance Introduction: City Council
5. Authorizing the City Manager to enter into a lease agreement with
A.P.I. for the use of Veterans Field to conduct and promote a boxing
event.
1. Lease term is for two nights commencing on October 3, 1997 and
ending on October 4, 1997;
2. Total rent shall be $2,000.00.
Cw. Montalvo requested that staff should come before the council
before they commit to any more agreements or contracts for Veterans
Field.
Ordinance Introduction: City Council
V. FINAL READINGS
Motion to waive the final reading of ordinances #97-O-216, #97-O-217,
#97-O-218, #97-O-218, and #97-O-219.
Moved : Cm. Perez
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
6. 97-O-216 Authorizing the City Manager to execute a lease renewal with
the State of Texas General Services Commission on behalf of
the Texas Department of Health, Public Health Regional 11,
for 2,268 square feet of office space at the City of Laredo
Health Complex located at 2600 Cedar Street.
1. Lease renewal term will be from September 1, 1997,
through August 31, 1998, at no space cost; 2. Monthly
electricity and janitorial services shall be $703.50.
(City Council)
Motion to approve Ordinance #97-O-216.
Moved : Cm. Perez
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
7. 97-O-217 Authorizing the City Manager to execute a lease renewal with
the State of Texas General Services Commission on behalf of
University of Texas Health Science Center at San Antonio for
317 square feet of office space at the City of Laredo Health
Complex located at 2600 Cedar Street.
1. Lease renewal term will be from September 1, 1997,
through August 31, 1998.
2. Monthly rent shall be $335.88 which includes cost of
utilities and janitorial services. (City Council)
Motion to approve Ordinance #97-O-217.
Moved : Cm. Perez
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
8. 97-O-218 Designating as a public easement, seven tracts of land as
part of the proposed extension of Arkansas Avenue from
Saunders Street (U.S. Hwy. 59) to Foster Avenue. Said tracts
being Tract 1, Tract 2, Tract 3, Tract 4, Tract 5, Tract 6,
and Tract 7, out of the Airport Property, being generally
described below and providing for an effective date:
TRACT 1 - Being 0.335 acres out of Block 22, Subdivision
Plat of Laredo Airport in the City of Laredo, Webb County,
Texas, as recorded in Volume 5, Page 1, Map records of Webb
County, Texas. TRACT 2 - Being 0.166 acres out of Block 30,
Subdivision Plat of Laredo Airport, in the City of Laredo,
Webb County, Texas, as recorded in Volume 5, Page 1, Plat
records of Webb County, Texas. TRACT 3 - Being 1.126 acres
out of Block 20, Subdivision Plat of Laredo Airport, in the
City of Laredo, Webb County, Texas, as recorded in Volume 5,
Page 1, Map records of Webb County, Texas. TRACT 4 - Being
0.272 acres out of Block 7, Subdivision Plat of Laredo
Airport in the City of Laredo, Webb County, Texas, as
recorded in Volume 5, Page 1, Plat records of Webb County,
Texas. TRACT 5 - Being 2.902 acres out of Block 1,
Subdivision Plat of Laredo Airport in the City of Laredo,
Webb County, Texas, as recorded in Volume 5, Page 1, Plat
records of Webb County, Texas. TRACT 6 - Being 1.549 acres
out of Laredo International Airport Property, as recorded in
Volume 478, Pages 479-481, Deed Records of Webb County,
Texas; being also out of Survey Number 799, Abstract Number
329, in the City of Laredo, Webb County, Texas.
TRACT 7 - Being 0.642 acres out of the City of Laredo 8.1488
acre tract, recorded in Volume 1251, Pages 26-27, Real
Property Records of Webb County, Texas, being also out of
Survey Number 799, Abstract Number 329, in the City of
Laredo, Webb County, Texas.
(City Council)
Motion to approve Ordinance #97-O-218.
Moved : Cm. Perez
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
9. 97-O-219 Declaring the public necessity to convert the south 19.08
feet by 277.78 feet section of the 400 Block of Ryan Street
between Springfield and Maryland Avenues into a parking
facility for the East Central Laredo Park and the North side
section into a 19 foot wide one-way street from Springfield
to Maryland, and authorizing the transfer of $21,124.00,
from 1993 CDBG Paving Project 51 Line Item No. 211-9340-597-
4951 to the East Central Laredo Park Line Item No. 211-
9380-555-1166 to cover the construction of the improvements
for this project and providing for an effective date.
(City Council)
Motion to approve Ordinance #97-O-219.
Moved : Cm. Perez
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
10. 97-O-220 Authorizing the City Manager to execute all necessary
documents to convey those sections of San Agustin Avenue
between Zaragoza and Water Streets and Flores Avenue between
Zaragoza and Water Streets to Fasken Ltd., a Texas Limited
Partnership in exchange for two corner clip tracts at the
intersection of IH 35 and FM 3464 (Milo Interchange). Said
street sections being described on "Exhibits A & B" and said
corner clip tracts being more particularly described below
and more particularly described by Metes and Bounds on
"Exhibits C & D", respectively, and providing for an
effective date:
PARCEL 1 - Being a 15,678.00 square foot (0.35992 of an
acre) tract of land, more or less, out of and part of the
Barbara T. Fasken 489.11 acre tract of land lying and being
in Porcion 20, Abstract 48, Original Grantee, Bautista
Garcia, as executed by Palafox Exploration Company to
Barbara T. Fasken by deed dated December 17, 1984 and
recorded in Volume 1089, Pages 391-392, Webb County Real
Property Records, save and except 8.68 acres conveyed to the
State of Texas by deed recorded in Volume 1308, Pages 728-
735, Webb County Real Property Records. PARCEL 2 - Being a
5,000.00 square foot (0.1148 of an acre) tract of land, more
or less, out of and part of the Barbara T. Fasken 489.11
acre tract of land lying and being in Porcion 20, Abstract
48, Original Grantee, Bautista Garcia, as executed by
Palafox Exploration Company to Barbara T. Fasken by deed
dated December 17, 1984 and recorded in Volume 1089, Pages
391-392, Webb County Real Property Records, save and except
8.68 acres conveyed to the State of Texas by deed recorded
in Volume 1308, Pages 728-735, Webb County Real Property
Records. (Mario G. Alvarado)
Motion to approve Ordinance #97-O-220.
Moved : Cm. Perez
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
11. 97-O-221 Authorizing the City Manager to execute all necessary
documents to effectively convey fee simple title to Elsa P.
Saenz and Olga Escobar for the sale at Fair Market Value of
"Surface Only" of certain City property described as that
former section of the 1400 Block of Santa Barbara Street
between Texas and Milmo Avenues situated in the Eastern
Division, City of Laredo, Webb County, and providing for an
effective date. Louis H. Bruni)
Motion to approve Ordinance #97-O-221 with a correction to
read "2500 block" instead of "1400 block" of Santa Barbara
Street.
Moved : Cm. Guerra
Second: Cm. Valdez
For: 7 Against: 0 Abstain: 1 Cm.
Perez
12. 97-O-222 Authorizing the City Manager to execute all necessary
documents to convey a 1.176 acre tract of City-Airport-owned
land situated in the north side and contiguous to the Main
Post Office, to the U.S. Postal Service in exchange for the
U.S. Postal Service conveyance to the City of a 0.813 of an
acre tract of land, situated in the east portion of the Main
Post Office, for the extension of Arkansas Avenue, north of
Saunders Street (U.S. Hwy. 59). Providing for an effective
date. (City Council)
Motion to approve Ordinance #97-O-222.
Moved : Cm. Perez
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
13. 97-O-223 Amending Chapter 14, Garbage, Trash, And Refuse Article I,
Section 14-4.1 (d)(7)(8)(9) - Rates, of the Code of
Ordinances of the City of Laredo, in order to allow for the
collection of landfill fees for disposal of garbage at the
City's Landfill site on Sundays by 1) private individuals
who are non-residents of the City of Laredo; providing for
publication and effective date. (City Council)
Motion to approve Ordinance #97-O-223.
Moved : Cm. Perez
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
14. 97-O-224 Ordinance amending the City of Laredo's 1996-1997 annual
budget in the amount of $49,922.00 for a grant awarded by
the Texas Natural Resource Conservation Commission's Used
Oil Division to be used for enhancing and continuing the
Used Oil Collection and Recycling Program for the period
from September 1, 1997 through July 31, 1998 and authorizing
the City Manager to implement said budget. (City Council)
Motion to approve Ordinance #97-O-224.
Moved : Cm. Perez
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
15. 97-O-225 Ordinance amending the City of Laredo, Texas investment
policy to comply with House Bill 2799 which amended the
public funds investment act, Chapter 2256, of the Texas
Government Code. The changes became effective September 1,
1997.
(City Council)
Motion to approve Ordinance #97-O-225.
Moved : Cm. Perez
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
16. 97-O-226 Ordinance amending the City of Laredo's 1996-1997 Annual
Budget in the amount of $343,844.00 for an Auto Theft Task
Force Grant for funding equipment, personnel, travel, and
direct operating expenses for the period of September 1,
1997 to August 31, 1998. (City Council)
Motion to approve Ordinance #97-O-226.
Moved : Cm. Perez
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
17. 97-O-227 Ordinance amending a contract with the Texas Department of
Health and Budget in the amount of $92,707.00, for the
HIV/AIDS Health and Social Services Project of the City of
Laredo Health Department for the period beginning September
1, 1997, through August 31, 1998; and increase Revenue Line
Item 226-0000-323-4050 from $0 to $92,707.00, and
Expenditure Line Item 226-6061 from $0 to $92,707.00. (City
Council)
Motion to approve Ordinance #97-O-227.
Moved : Cm. Perez
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
18. 97-O-228 Ordinance amending a contract with the Texas Department of
Health and Budget in the amount of $66,000.00 for the
HIV/AIDS Health Education/Risk Reduction Project of the City
of Laredo Health Department for the period beginning
September 1, 1997, through August 31, 1998; and increasing
Revenue Line Item 226-0000-323-4043 from $0 to $66,000.00,
and Expenditure Line Item 226-6063 from $0 to $66,000.00.
(City Council)
Motion to approve Ordinance #97-O-228.
Moved : Cm. Perez
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
19. 97-O-229 Ordinance amending the contract with the Texas Department of
Health and Budget in the amount of $11,400.00, for the
Border Environmental Survey of the City of Laredo Health
Department for the period beginning September 1, 1997,
through August 31, 1998; and increasing Revenue Line Item
226-0000-323-4075 from $0 to $11,400.00, and increasing
Expenditure Line Item 226-6074 from $0 to $11,400.00. (City
Council)
Motion to approve Ordinance #97-O-229.
Moved : Cm. Perez
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
20. 97-O-230 Ordinance amending the City of Laredo's 1996-1997 budget in
the amount of $131,418.00, for additional salary and fringe
benefits and the purchase of five (5) vehicles for the
multi-agency financial disruption force grant awarded by the
office of National Drug Control Policy beginning July 1,
1997 and ending June 30, 1998. (City Council)
Motion to approve Ordinance #97-O-230.
Moved : Cm. Perez
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
VI. RESOLUTIONS
21. 97-R-102 Accepting a Fiscal Year 1997 Military Airport Program (MAP)
Grant in the amount of $2.0 Million from the Federal
Aviation Administration (FAA) and appropriating the sum of
$222,223.00, as the local match and authorizing the City
Manager to execute the grant agreement. The local match is
available in the New Airport Passenger Terminal Reserve
Account. The federal and local funds will be used to
purchase and install four passenger boarding bridges at the
new passenger terminal and to acquire a portion of the
Runway Protection Zone (RPZ) to Runway 35L.
Motion to approve Resolution #97-R-102.
Moved : Cm. Perez
Second: Cm. Bruni
For: 8 Against: 0 Abstain: 0
22. 97-R-103 Authorizing the Mayor of the City of Laredo to Execute the
Metropolitan Transportation Planning Contract with the Texas
Department of Transportation for and on behalf of the Laredo
Urban Transportation Study (L.U.T.S.).
Motion to approve Resolution #97-R-103.
Moved : Cm. Perez
Second: Cm. Valdez
For: 8 Against: 0 Abstain: 0
VII. COMMUNICATIONS
Mayor Ramirez recognized Cw. Moreno as the newest appointed member by
Governor Bush to the Texas Teachers Retirement System.
VIII. ADJOURNMENT
Motion to adjourn. Time: 1:15 p.m.
Moved : Cm. Perez
Second: Cw. Montalvo
For: 8 Against: 0 Abstain: 0
I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 15
ARE TRUE COMPLETE AND CORRECT PROCEEDINGS OF THE SPECIAL CITY COUNCIL MEETING
HELD ON THE 27TH DAY OF SEPTEMBER, 1997. A CERTIFIED COPY IS ON FILE AT THE
CITY SECRETARY'S OFFICE.
________________________
GUSTAVO GUEVARA, JR.
CITY SECRETARY