CITY OF LAREDO

CITY COUNCIL ANNUAL BUDGET WORKSHOP

FOR PROPOSED FY 2001-2002 BUDGET

M2001-W-05

CITY COUNCIL CHAMBERS

1110 HOUSTON STREET

LAREDO, TEXAS

FRIDAY, AUGUST 17, 2001

I. Call to Order

With a quorum present, Mayor Elizabeth G. Flores called the meeting to order.

II. Pledge of Allegiance

Mayor Elizabeth G. Flores led in the Pledge of Allegiance.

III. Roll Call

In attendance:

Elizabeth G. Flores, Mayor

Alfredo Agredano, Council Member, District I

Louis H. Bruni, Council Member, District II

John C. Galo, Council Member, District III

Johnny Amaya, Council Member, District IV

Eliseo Valdez, Jr., Mayor Pro Tempore, District V

Joe A. Guerra, Council Member, District VI

Jose A. Valdez, Jr., Council Member, District VII

Juan Ramirez, Council Member, District VIII

Gustavo Guevara, Jr., City Secretary

Larry Dovalina, City Manager

Cynthia Collazo, Assistant City Manager

Jaime Flores, City Attorney

IV. Proposed Annual Budget Workshop for FY 2001-2002

a. Review and present FY 2001- 2002 Proposed Annual Budget (Continued)

Q. Fire Department

Luis Sosa, Jr., Fire Chief

1. Fire Prevention and Suppression

2. EMS & Ambulance Service

3. Fire Training Facility

R. Police Department

Agustin Dovalina, III, Police Chief

1. Police Department

Motion to approve additional capital outlay from the Police Trust Fund and approve an Assistant Police Chief position from the General Fund.

Moved: Cm. Bruni

Second: Cm. J. Valdez, Jr.

For: 8 Against: 0 Abstain: 0

S. Convention & Visitors Bureau Department

Don Raulie, Convention & Visitors Bureau Director

1. Hotel-Motel Fund Revenues

2. Convention & Visitors Bureau Operations

3. Civic Center Operations

4. Mercado Operations

T. Laredo Metro, Inc.

Peter Behrman, Laredo Metro, Inc., General Manager

During FY 2001, the Laredo Transit System, “El Metro”, continued to expand and adjust its services. An additional bus was added to Route 12, the Del Mar Express, in the morning peak period; Route 1, Santa Maria Avenue, was expanded to serve the area along International Drive; a shuttle service was started this summer from Mall del Norte to La Bota Ranch and Indian Sunset subdivisions on an experimental basis. An additional major change will be made to the Santa Maria route to serve the new Doctor’s Hospital as well as provide service on Shiloh Boulevard for the first time.

Staff has also been busy adding and improving the amenities of the El Metro bus system. Over 40 bus shelters have been installed throughout the city at high ridership stops. These shelters are both the advertising shelters with lighting and the less obtrusive “sunshade” shelters. Staff has also leased and overseen the construction of a Burger King fast food restaurant in the Transit Center Building. After being open for one week, the restaurant is already the second highest grossing Burger King restaurant in Laredo. If this business keeps up, the City will not only realize the base rent of $42,000.00 a year for the transit system but additional revenues of 4% of gross sales over $1,050,000.00 per year. At the current pace of $3,000.00 to $4,000.00 a day in gross sales, this additional revenue could be over $15,000.00 per year.

FY 2001 BUDGET

These service additions as well as the other factors I will describe have caused an increase in the proposed FY 2001 operating budget for El Metro. Specifically, the proposed budget for fiscal year 2001-2002 presented to council on pages 552 to 595 reflects an approximately $800,000 increase over the current year’s amended budget. The increase is attributed to the following:

1. Inflation of 3.2% equates to approximately $300,000

2. Additional requested personnel approximately $100,000

3. Increase in fuel and services $220,000

4. Budgeting a 20% increase in health insurance $180,000

(The increase was 17.9% for current fiscal year)

In addition to the City Manager’s proposed budget, the Laredo Metro, Inc. Board recommends City Council approval for the following additional expenditures:

1. The inclusion of an additional Service Person $ 30,000

2. The inclusion of a Human Resource Coordinator $ 40,000

3. Remodeling of the Transit Center $150,000

(First floor restrooms and information booth)

4. Return to fund balance appropriated funds $139,470

Motion to transfer $3,000,000.00 into a restrictive reserve fund from Reserve Appropriations account and leaving the difference in the Reserve Balance.

Moved: Cm. Ramirez

Second: Cm. Agredano

For: 8 Against: 0 Abstain: 0

Motion to deny the two positions requested: Human Resource Coordinator and Service Cleaner person.

Moved: Cm. Ramirez

Second: Cm. Amaya

For: 8 Against: 0 Abstain: 0

1. El Metro Operations

2. Capital Improvements

8:00 p.m. BREAK

U. Utilities Department

Fernando Roman, Utilities Director

1. Water Operations

2. Status of Water Capital Improvements

3. Wastewater Operations

4. Status of Wastewater Capital Improvements

V. Third Party Agencies

Mayor Flores announced that the City Council was requesting to go into Executive Session under §551.071(2) of the Texas Open Meetings Act.

Cm. Bruni inquired as to who was going into Executive Session.

There was no response.

Cm. Bruni stated that he refused to go into Executive Session.

Mayor Flores stated that she was requesting some legal advice and that the City Council should go into Executive Session.

Jaime Flores, City Attorney, requested permission to “approach the bench” to consult with Mayor Flores. Permission was granted and the City Attorney consulted with the Mayor.

Jaime Flores, City Attorney, stated that the question being posed by Mayor Flores required private legal consultation and, therefore, the City Council may go into Executive Session, if they approved his request to do so. Mr. Flores mentioned that since Mayor Flores had questions in connection with the memorandum that he handed to City Council immediately prior to the workshop and related legal issues which, in his opinion, required private consultation, he was requesting that City Council go into Executive Session. He then invoked the rule under §551.071(2) of the Texas Open Meetings Act requesting to meet with the City Council in Executive Session to provide them with confidential legal counsel because he deemed it his duty under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas to provide private consultation to the governing body.

Motion to go into Executive Session under §551.071(2) of the Texas Open Meetings Act.

Moved: Cm. Galo

Second: Cm. Amaya

For: 8 Against: 0 Abstain: 0

*Note: Cm. Bruni, Cm. J. Valdez, Jr. and Cm. Amaya declined to go into

Executive Session.

After Executive Session, Mayor Flores announced that no formal action was taken.

Jessica Kent, reporter with the Laredo Morning Times, stated that the newspaper was opposing the Executive Session.

Martha Gonzalez, with the Laredo Center for the Arts, as the Chair of the committee that

reviewed all the agency applications, made the presentation before City Council.

The City Council made changes as per entries shown under column labeled “Council

Recommendation”.

	GENERAL FUND
			Agency	Committee	Council
Name of Agency			Request	Recomm	Recomm
Avance			$ -	$ -
BEST, Inc.			$ 25,000	$ 14,063	14,063
Bethany House			$ 24,000	$ 15,000	20,000
Border Area Nutrition Council (B.A.N.C.)			$ 45,000	$ 27,000	35,000
Boy Scouts Gulf Coast Council			$ 30,000	$ 18,000	18,000
Boy's & Girl's Club of Laredo			$ 125,000	$ 89,528	90,000
Casa de Misericordia			$ 50,000	$ 10,000	15,000
Catholic Social Services of Laredo, Inc.			$ 25,000	$ 11,250	15,000
Children's International Advocacy			$ 75,000	$ 50,000	14,400
Club Olympia			$ 5,000	$ 4,500	4,500
Communities In Schools			$ 25,000	$ 15,000	15,000
Community Action Agency			$ 77,000	$ 38,750	39,000
Girl Scouts Paisano Council			$ 12,000	$ 10,000	10,000
Holding Institute			$ -	$ -	-
Infante Boxing Club of Laredo			$ -	$ -	-
July 4th Family Fiesta			$ -	$ -	-
L.I.F.E.			$ 10,000	$ 4,500	4,500
L.I.S.D. Campus Crimestoppers			$ 7,500	$ 6,000	7,500
Laredo Crime Stoppers, Inc.			$ 25,000	$ 15,000	15,000
Laredo Latin American Int'l Sports Hall of Fame			$ 4,000	$ 3,600	3,600
Laredo Little Theater			$ 27,975	$ 27,055	27,055
Laredo Regional Food Bank, Inc.			$ 20,000	$ 18,000	20,000
Laredo Veteran's Coalition			$ 120,000	$ 60,000	60,000
Laredo Webb County Child Welfare			$ -	$ -	-
Laredo Webb County Food Bank			$ 59,000	$ 30,550	30,000
Laredo Webb NHS, Inc.			$ 20,000	$ 15,000	15,000
Literacy Volunteers of America - Laredo			$ 48,140	$ 6,750	7,000
Mi Laredo			$ 4,500	$ 4,500	4,500
Rio Grande International Studies Center			$ 20,000	$ 16,375	20,000
Rio Grande/Rio Bravo Basin Coalition			$ 7,500	$ 5,000	5,000
Ruthe B. Cowl Rehabilitation Center			$ 125,000	$ 67,500	75,000
S.T.C.A.D.A.			$ 50,000	$ 4,325	10,000
Sacred Heart Children's Home			$ 5,000	$ 2,625	5,000
Serving Children & Adoles. In Need, Inc.			$ 50,000	$ 50,000	36,000
Webb County American Red Cross			$ 15,000	$ 6,675	10,000
Total General Fund			$ 1,136,615	$ 646,546	645,118
			Agency	2001 - 2002	Council
Name of Agency			Request	Recom'ed	Recomm
Agencies in red have not fulfilled contractual requirements.
New groups not funded in previous year:
Border Olympic			$ 9,000	$ 9,000	9,000
Laredo HSDA HIV Services Consortia			$ 10,000	$ -	-
Streets of Laredo Urban Mall		*	$ 66,000	$ -	10,000
Total New Groups			$ 85,000	$ 9,000	19,000
*subject to verification that the monies are set aside for outside promotion

INTERLOCAL AGREEMENTS
	2000 - 2001	Agency	2001 – 2002
Name of Agency	Actual	Request	Recommendation
Laredo Animal Protective Society	$ 126,000	$ 136,500	$ 126,000
Laredo Development Foundation	$ 285,000	$ 357,400	$ 357,400