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City Council |
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Dee Margo |
Peter Svarzbein, District 1 |
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Mayor |
Alexsandra Annello, District 2 |
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Cassandra Hernandez-Brown, District 3 |
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Sam Morgan, District 4 |
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Tommy Gonzalez |
Michiel R. Noe, District 5 |
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City Manager |
Claudia Ordaz Perez, District 6 |
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Henry Rivera, District 7 |
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Cissy Lizarraga, District 8 |
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SPECIAL MEETING OF THE CITY COUNCIL MEETING MINUTES MAIN CONFERENCE ROOM |
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JULY 31, 2017 |
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The City Council met at the above place and date. Meeting was called to order at 9:04 a.m. Mayor Dee Margo present and presiding and the following Council Members answered roll call: Peter Svarzbein, Alexsandra Annello, Cassandra Hernandez-Brown, Sam Morgan, Michiel R. Noe, Henry Rivera, and Cissy Lizarraga. Late arrival: Claudia Ordaz Perez at 9:06 a.m. |
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AGENDA |
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1. |
Presentation of certified appraisal roll, effective rate, and roll back rate for the FY 2017 – 2018 budget.
Mr. Roberto Cortinas, Director of Office and Management Budget, presented a PowerPoint presentation (copy on file in City Clerk’s Office).
Mr. Tommy Gonzalez, City Manager explained that medium price home values in Texas cities our size increased where ours decreased. He listed San Antonio for example where in 2011 the medium price was $133,000 and in 2016 it was $174,000. He mentioned that he sent articles to everyone on Texas cities that have also had their values increase.
Representative Ordaz Perez stated, “Despite growth in the City, El Paso ranks last in property valuation growth.”
Representative Noe questioned, “On commercial growth is it growing faster than residential?”
Mr. Cortinas replied, “Yes.”
Representative Noe asked, “Are we closing gap between residential and commercial?”
Mayor Margo replied, “Not fast enough still behind curve. Does the commercial include Western Refining change (refunds)?”
Mr. Cortinas replied, “Yes, Western Refining signed an agreement/waiver not protest the values.”
Mr. Gonzalez asked, “Another reduction for another business?”
Mr. Cortinas replied, “The large one was Western Refining.”
Representative Brown questioned, “What are we doing to make sure we oversee the abuse or potential abuse of these exemptions? Can the City make a request to overview of these exemptions?”
Mayor Margo stated, “We have a right to request info from CAD, homeowner files an affidavit.”
Mr. Cortinas stated, “Central Appraisal District hires an outside auditor to monitor, I’ve talked to the internal auditor about possibly doing something with the Central Appraisal District.”
Mr. Gonzalez replied, Let’s make a request.”
Mayor Margo stated, Appraisal review board controlled by the State appointed by the District Judge and that the City has two appointees and that more discussion is needed.
Representative Ordaz Perez asked, “Were they State legislation going to make those positions elected?”
Mayor Margo replied, “Not yet it hasn’t passed.”
Mr. Cortinas stated, “If there was a 5% cap then there would be negative impact of $285,000 and that would be the reduction if the cap were in place.”
Mayor Margo questioned, “Police overtime is that based on TXDOT projects?”
Mr. Cortinas replied, “Correct.”
Representative Annello questioned if the department summary form in the backup was different than the rate he just stated.
Mr. Cortinas replied, “That’s the M & O portion rate.”
Mayor Margo stated, “Make sure to ask questions to get it out on the table.”
Mr. Cortinas explained that two public hearings would be needed since the proposed tax rate is above the effective rate.
Representative Annello inquired about the amount of wiggle room since it was suggested to set the rate higher
Mr. Cortinas replied, “It would mean the roll back rate would be .812949.”
Representative Brown questioned reductions $700,000 in personnel. “If you make those reductions, are any at the department head level and or will it be a detriment to departments?”
Mr. Gonzalez explained that they would manage vacancies and keep them vacant longer to make budget and mentioned he wanted to fill the Chief Financial Officer position as soon as possible and that as far as other positions they’ve closed ranks and assigned added duties especially at senior levels try to fill as much as possible but he couldn’t guarantee that there won’t be an impact.
Representative Noe questioned, “Is there a requirement for contract wages and wages for non-employees?”
Mr. Gonzalez replied, “Still at same rate, not to my knowledge.”
Representative Morgan questioned, “When we put out an RFQ or RFP? Do we have requirements that contract employees be paid at a certain wage?”
Mr. Gonzalez replied, “For construction work but not security maintenance.”
Representative Morgan asked, “Can we do that?”
Mayor Margo asked, “What kind of requirement?”
Representative Noe explained that they didn’t have a majority support with the prior Council.
Representative Annello asked, “Was Council briefed on the successes of a living wage increase?”
Representative Noe replied, “Constantly.”
Representative Rivera asked, “If City pays higher?”
Mr. Gonzalez replied, “Some contracts have already gone up in some cases by a couple of hundred dollars in Parks.”
Mayor Margo stated, “Professional services and contractual services projected to go up 42%, professional services to go up $3 million or 4% increase. Is there any room there?”
Mr. Cortinas explained that they have looked at everything related to contracts and reviewed it with departments and if Council wishes they can go back
Mayor Margo stated, “Some legal contracts more in litigation, more cost.”
Representative Morgan questioned, “Do we place a cap on the percentage of profit a contract should make?”
Mr. Gonzalez replied, “Not aware on publications for low bid if there is a requirement.”
Representative Morgan explained that if contractors that work for the City and represent the City and they shouldn’t get it if they’re making large profit and folks aren’t making a living wage.
Mr. Gonzalez stated, “What we have done I mentioned the parks item actually the number was 2 or 300,000 higher and then it came back half a million more than before so we broke it up into different pieces and rebid it there was a particular project that staff recommended that we rebid it because it was over budget.”
Representative Morgan stated that he would like to see it and agreed with Representative Annello her would like to be briefed again.
Mr. Gonzalez provided some of that information during orientation.
Representative Noe stated that most of the briefing was made by proponents not the City and that the “City came up with actual numbers on what other cities had done.”
Mayor Margo asked, “Isn’t there a wage survey that’s required, do we have to follow Davis Bacon in certain projects or all projects?”
Mr. Gonzalez replied, “Yes we do.”
Mayor Margo stated that when doing federal contracts there’s no doubt about living wages.
Mr. Bruce Collins, Director of Purchasing and Strategic Sourcing, stated, “Federal funded contracts we do adhere to Davis Bacon and the federal government establishes rates that will be paid including the benefits and they’re higher than what they would normally pay for non-government projects.”
Mr. Andy Goh, City Engineer, stated, “Earlier this year City Council approved the City-County rate to set the minimum wage rate however the market drives the rate.”
Mr. Collins stated, “City County rate is a minimum wage rate of $10 per hour for any laborer.”
Representative Rivera asked, “Reviewed regular basis? Every year?”
Mayor Margo replied, “Not every year but every 3 or 4 years.”
Representative Ordaz Perez questioned profits for contracts.
Mayor Margo replied, “DOD contracts are different, they allow you to put all ypour indirect costs in different areas to limit profit margins. The City cannot do that”
Representative Morgan inquired if the City had a mechanism to check if contractors were actually paying the correct wages.
Mr. Collins explained that there are some procurement processes where the City negotiates then the team looks at the profit and indirect costs that the contractor is proposing and will target the areas that are above the market to negotiate.
Mayor Margo concerned that they’re not paying the correct wage if they’re including administration costs.
Representative Noe stated, “Approved wage theft ordinance.”
Mr. Collins stated, “We do have procurement process when the City negotiates certain projects on low bid price driven by market.”
Mr. Gonzalez replied, “We don’t negotiate until short list is selected.”
Representative Morgan asked, “What are you looking for when analyzing?”
Mr. Collins replied, “Looks at division of work.”
Mr. Khalil Zaied, Deputy City Manager Public Works, stated, “Construction projects if someone works around number they beef up costs. Engineering looks at those costs.”
Mr. Goh stated, “Compare profit margin vs market rate (less than 5% on big projects).”
Representative Hernandez-Brown asked, “What would 1.8% valuations generate in taxes?”
Mr. Cortinas replied, “A little over $34 million.”
Representative Hernandez-Brown asked, “When are they going to have discussion on requests?”
Mr. Gonzalez replied, “This is the first part of the process you have to set the ceiling and the 3.93 is what’s been valuated then you can work on reducing depending on requests. Robert was going to send Council an estimate of those costs.”
Mr. Cortinas replied, “Still going over responses.”
Representative Hernandez-Brown asked, “Does Council want to move forward the discussion? I’m really concerned with the duration of vacancies are we okay with mediocre work at departments due to staffing and not filling vacancies?”
Mr. Gonzalez stated, “You can put it right under its roll back rate for now if Council wants to consider requests, as far as the vacancies and best practices you want to be as lean as possible and we’re lean. We have shown you only some examples of reallocating time and we do assign additional duties from time to time and believes in assigning additional pay with that especially when it’s an interim position. I believe we’re doing well as an organization and he accepts and hear your concerns and work hard to function at high level. We’re adding 30 Quality of Life positions, more police officers, more public safety. High priority areas are not sacrificed.”
Representative Svarzbein questioned Animal Services vacancy.
Mr. Gonzalez replied, “We have an interim, Director Paula Powell.”
Representative Hernandez-Brown asked, “Is there a salary savings?”
Mr. Gonzalez replied, “No.”
Representative Svarzbein asked, “Is there a ceiling for the proposed tax rate, how much can you go up before the rollback?”
Mr. Gonzalez replied, “To have the maximum flexibility you’ve got to go up to .812, but you could also consider cutting somewhere else.”
Mayor Margo stated, “Can’t go to rollback rate it has to be below, right below.”
Representative Svarzbein asked, “How does this relate to the COs proposed?”
Mr. Gonzalez stated, “Not affect this year’s budget unless it’s a specific funding project for this budget, for example public safety.”
Ms. Sylvia Firth, City Attorney, stated, “You could set a rollback rate and work down from there so it doesn’t trigger an election.”
Mr. Gonzalez stated, “Best action taken today.”
Representative Svarbein asked, “When is the discussion on Council’s request?”
Mr. Gonzalez replied, “We were working on having that on August 8, work session maybe on August 7 I need to talk to the Mayor.”
Representative inquired if the meetings would be open for the public and the City Manager replied that all meetings are open.
MOTION Motion made by Mayor Pro Tempore Noe, seconded by Representative Rivera, and carried to SET the rate at the rollback rate of .812949.
AYES: Representatives Svarzbein, Annello, Hernandez-Brown, Morgan, Ordaz Perez, and Rivera, and Lizarraga NAYS: Representative Noe |
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2. |
Discussion and action on FY 2017 – 2018 Budget.
Mayor Margo and Representatives Annello, Morgan, Hernandez-Brown commented.
Mr. Tommy Gonzalez, City Manager, commented.
NO ACTION was taken on this item. |
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3. |
INTRODUCTION OF ORDINANCE PURSUANT TO SECTION 3.9 OF THE EL PASO CITY CHARTER:
Introduction of an Ordinance levying FY 2017 – 2018 taxes.
PUBLIC HEARINGS WILL BE HELD ON AUGUST 8, 2017 and AUGUST 15, 2017, FOR THE ITEM
MOTION Motion made by Representative Ordaz Perez, seconded by Representative Annello, and unanimously carried to APPROVE the introduction of the Ordinance setting the tax rate at the rate of 0.812949 of one percent of the assessed value on all property, real, personal and mixed.
AYES: Representatives Svarzbein, Annello, Hernandez-Brown, Ordaz Perez, and Rivera, and Lizarraga NAYS: Representative Noe NOT PRESENT: Representative Morgan |
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EXECUTIVE SESSION Motion made by Mayor Pro Tempore Noe, seconded by Representative Svarzbein, and unanimously carried that the City Council retire into EXECUTIVE SESSION at 10:25 a.m. pursuant to Section 3.5A of the El Paso City Charter and the Texas Government Code, Sections 551.071 - 551.087 to discuss any of the following:
Section 551.071 CONSULTATION WITH ATTORNEY Section 551.072 DELIBERATIONS REGARDING REAL PROPERTY Section 551.073 DELIBERATION REGARDING PROSPECTIVE GIFTS Section 551.074 PERSONNEL MATTERS Section 551.076 DELIBERATION REGARDING SECURITY DEVICES Section 551.087 DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS
Motion made by Representative Ordaz Perez, seconded by Representative Annello, and unanimously carried to adjourn the Executive Session at 10:54 a.m. and RECONVENE the meeting of the City Council, during which time motions were made.
NOT PRESENT FOR THE VOTE: Representative Morgan |
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EX1. |
Economic Incentives for a Customer Contact Center located in the City of El Paso (551.071 and 551.087)
NO ACTION taken on this item. |
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ADJOURN
Motion made by Representative Ordaz Perez, seconded by Representative Annello, and unanimously carried to ADJOURN this meeting at 10:57 a.m.
NOT PRESENT FOR THE VOTE: Representative Morgan |
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APPROVED AS TO CONTENT: |
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____________________________ |
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Laura D. Prine, Interim City Clerk |
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