HomeMy WebLinkAboutMinutes City Council - 02/25/2003I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the
Regular Council Meeting of the City of Corpus Christi of February 25, 2003, which were approved
by the City Council on March 11, 2003.
WITNESSETH MY HAND AND SEAL, this 11th day of March 2003.
in'.-Ini9rear
Armando Chapa
City Secretary
SEAL
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Council Meeting
February 25, 2003 - 2:05 p.m.
PRESENT
Mayor Samuel L. Neal Jr.
Mayor Pro Tem John Longoria
Council Members:
Javier D. Colmenero
Henry Garrett
Bill Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
ABSENT
Brent Chesney
City Staff:
Acting City Manager George Noe
Acting City Attorney R. Jay Reining
City Secretary Armando Chapa
Mayor Neal called the meeting to order in the Council Chambers of City Hall. The
invocation was delivered by Pastor Buddy Murphrey, Southcrest Baptist Church, and the Pledge
of Allegiance to the United States flag was led by Council Member Kinnison. City Secretary
Chapa called the roll and verified that the necessary quorum of the Council and the required
charter officers were present to conduct the meeting. Mayor Neal called for approval of the
minutes of the regular Council meeting of February 11, 2003. A motion was made and passed to
approve the minutes as presented.
Mayor Neal called for consideration of the consent agenda (Items 2-14). City Secretary
Chapa said that Item 12 needed to be amended. Council members requested that Item 4 be
discussed. There were no comments from the audience. Mr. Chapa polled the Council for their
votes and the following passed:
M2003-071
Motion approving a supply agreement with LaFarge Road Marking Inc., Ennis, Texas for
approximately 24,000 gallons of pavement marking paint in accordance with Bid
Invitation No. BI -0061-03 based on low bid for an estimated annual expenditure of
$109,476. The term of the supply agreement will be for twelve months with an option to
extend for up to two additional twelve-month periods subject to the approval of the
supplier and the City Manager or his designee. Funds have been budgeted by Street
Services in FY2002-2003.
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
3. M2003-072
Motion approving the lease purchase of five (5) automated side -loading refuse trucks
from the following companies for the following amounts for the total amount of
Minutes — Regular Council Meeting
February 25, 2003 — Page 2
$824,195. The award is based on the Cooperative Purchasing Agreement with the Texas
Local Government Purchasing Cooperative (TLGPC). These automated side -loading
refuse trucks will be used by Solid Waste Services. Financing will be provided through
the City's lease/purchase financing program. These refuse trucks will be replacements to
the fleet.
Rush Truck Center McNeilus Truck & Manufacturing Grand Total:
Houston, Texas Hutchins, Texas $824,195
Truck Chassis Refuse Packer Body
$511,250 $312,945
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
5.a. M2003-074
Motion authorizing the Acting City Manager or his designee to execute a construction
contract with Reynolds, Inc. of Orleans, Indiana in the amount of $1,238,200 for the
Broadway Basin Sewer Line Rehabilitation Project, Base Bid A -Rebid.
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
5.b. M2003-075
Motion authorizing the Acting City Manager or his designee to execute a construction
contract with King -Isles, Inc. of Corpus Christi, Texas in the amount of $1,096,765 for
the Broadway Basin Sewer Line Rehabilitation Project Base Bid B and Additive
Alternatives B-1 and B-2 Re -bid.
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
6. M2003-076
Motion authorizing the Acting City Manager or his designee to execute a consultant
contract with Goldston Engineering, Inc. of Corpus Christi, Texas in the amount of
$64,210 for the Southmoreland Addition Area Street Improvements, Phases 3B and 4B.
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
7. M2003-077
Motion authorizing the Acting City Manager or his designee to execute Amendment No.
3 to the consultant contract with Shiner, Moseley and Associates, Inc. of Corpus Christi,
Texas for a total fee not to exceed $52,020 for the Regional Transportation Authority
(RTA) Miscellaneous Street Improvements Project.
Minutes — Regular Council Meeting
February 25, 2003 — Page 3
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
8. M2003-078
Motion authorizing the Acting City Manager or his designee to execute a consultant
contract with Goldston Engineering of Corpus Christi, Texas for a total fee not to exceed
$72,600 for the Laguna Madre Wastewater Treatment Plant Aeration System
Rehabilitation.
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
9. M2003-079
Motion authorizing the Acting City Manager or his designee to grant permits to Sabco
Operating Company of Houston, Texas to drill three (3) oil or gas wells at exceptional
locations, approximately six (6) miles seaward of the Corpus Christi Marina in Corpus
Christi Bay, at State Tract 48 and State Tract 53.
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
10. M2003-080
Motion authorizing the Acting City Manager or his designee to execute a contract with
DataSeek Corporation of San Antonio, Texas, a Qualified Information Services Vendor
with the State of Texas, for the purchase of a complete EMC Symmetrix 8830 Storage
Area Network (SAN) and upgrade of the existing EMC Symmetrix 8530 SAN in the
amount of $1,515,995. The price includes a 60 -month hardware and software
maintenance/warranty on the new Symmetrix 8830 and is to be financed over a sixty -
month period through our lease finance program.
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
11.a. ORDINANCE NO. 025208
Ordinance appropriating $144,009.75 from the Unreserved Fund Balance in the No. 5210
Municipal Information System (MIS) Fund for the purchase of PeopleSoft Systems,
hardware and a web server for the implementation of the Utilities' Skill Based Pay and
Recruiting projects; amending the FY2002-2003 Operating Budget adopted by Ordinance
No.024974 by increasing appropriations by $144,009.75.
An emergency was declared and the foregoing ordinance passed: Neal, Colmenero,
Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
Minutes — Regular Council Meeting
February 25, 2003 — Page 4
11.b. M2003-081
Motion authorizing the Acting City Manager or his designee to execute a contract with
PeopleSoft USA, Inc. of Pleasanton, California for the purchase of eRecruit Manager
Desktop, eCompensation Manager Desktop, Resume processing, eProfile Manager
Desktop and first year maintenance for the implementation of the Utilities' Skill Based
Pay and Recruiting Projects in the amount of $108,504 in accordance with the State of
Texas Cooperative Purchasing Program.
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
11.c. M2003-082
Motion authorizing the Acting City Manager or his designee to execute a contract with
Logical Networks, Inc. of Irving, Texas for consulting and hardware support for the
implementation of the Utilities' Skill Based Pay and Recruiting Projects in the amount of
$22,604.85 in accordance with the State of Texas Cooperative Purchasing Program.
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
11.d. M2003-083
Motion authorizing the Acting City Manager or his designee to execute a contract with
Dell of Austin, Texas for the purchase of a Dell PowerEdge 2650 web server for the
implementation of the Utilities Skill Based Pay and Recruiting Projects in the amount of
$12,900.90 in accordance with the State of Texas Cooperative Purchasing Program.
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
11.e. M2003-084
Motion authorizing the Acting City Manager or his designee to execute a contract with
CDG & Associates, Inc. of Dallas, Texas for consulting support for the implementation
of the Utilities' Skill Based Pay and Recruiting Projects in an amount not to exceed
$132,000 in accordance with the State of Texas Cooperative Purchasing Program.
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
11.f. M2003-085
Motion authorizing the Acting City Manager or his designee to execute a contract with
Precision Task Group, Inc. of Houston, Texas, for consulting support for the
implementation of the Utilities' Skill Based Pay and Recruiting Projects in an amount not
Minutes — Regular Council Meeting
February 25, 2003 — Page 5
to exceed $89,700 in accordance with the State of Texas Cooperative Purchasing
Program.
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
13. FIRST READING ORDINANCE
Ordinance amending the Code of Ordinances Section 53-254, Schedule V, Increase of
State Speed Limit in Certain Zones, by revising the speed limits on the following street
sections: on Saratoga Boulevard (S.H. 357); revising the existing speed limits to the
following: 55 mph from Old Brownsville Road (F.M. 665) to Ayers Street (S.H. 286); 50
mph to 45 mph from Ayers Street (S.H. 286) to Rodd Field Road (S.H. 357) except a
portion where school zone flashes are displayed indication 30 mph; on Rodd Field Road,
(S.H. 357); revising the existing speed limits to the following: 55 mph to 45 mph from
Holly Road to the centerline of Saratoga Boulevard (S.H. 357); providing for penalties.
The foregoing ordinance passed on first reading by the following vote: Neal, Colmenero,
Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
14.a. ORDINANCE NO. 025210
Ordinance authorizing the City Manager or his designee to execute a five year farming
lease with Mark Stockseth, John H. White and Harry L. White, Jr. dba W & S Ag
Enterprises for 1,320 acres of farmland out of Cefe F. Valenzuela Municipal Landfill
located west of FM2444 and County Road 57 and approving a cash rental fee of
$55.00/acre per crop year.
The foregoing ordinance passed on second reading as follows: Neal, Colmenero, Garrett,
Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
14.b. ORDINANCE NO. 025211
Ordinance authorizing the City Manager or his designee to execute a five-year fanning
lease with Paul T. Rackley, Jr. and Marion G. Rackley dba Rackley and Rackley, a Joint
Venture for 940 acres of farmland out of the Cefe F. Valenzuela Municipal Landfill
located west of FM2444 and County Road 57 and approving a cash rental fee of
$55.00/acre per crop year.
The foregoing ordinance passed on second reading as follows: Neal, Colmenero, Garrett,
Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
14.c. ORDINANCE NO. 025212
Ordinance authorizing the City Manager or his designee to execute a five year farming
lease with Julius Zdansky, Jr. for 46 acres of farmland out of the proposed Southside
Sewer Treatment Plant site located off Yorktown Boulevard and approving a cash rental
fee of $20.00/acre per crop year.
Minutes — Regular Council Meeting
February 25, 2003 — Page 6
The foregoing ordinance passed on second reading as follows: Neal, Colmenero, Garrett,
Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
14.d. ORDINANCE NO. 025213
Ordinance authorizing the City Manager or his designee to execute a one year farming
lease with Julius Zdansky, Jr. for 20.598 acres of farmland located at the northeast comer
of Chapman Ranch Road and Saratoga Boulevard and approving a cash rental fee of
$30.00/acre per crop year.
The foregoing ordinance passed on second reading as follows: Neal, Colmenero, Garrett,
Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
14.e. ORDINANCE NO. 025214
Ordinance authorizing the City Manager or his designee to execute a one year farming
lease with Larry Mokry for 23.099 acres of farmland located at the northwest corner of
Chapman Ranch Road and Saratoga Boulevard and approving a cash rental fee of
$35.00/acre per crop year.
The foregoing ordinance passed on second reading as follows: Neal, Colmenero, Garrett,
Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 4, purchase of one ambulance. Responding to
Council Member Kelly, Fire Chief J.J. Adame said the members of the fire academy will
graduate around April 18, 2003 and then the city will have the staff for the new ambulance. He
said staff will make a recommendation to the City Manager and the Council regarding where the
ambulance will be located. City Secretary Chapa polled the Council for their votes as follows:
4. M2003-073
Motion approving the lease purchase of one (1) ambulance from Wheeled Coach,
Orlando, Florida, for the total amount of $144,049. The award is based on the
Cooperative Purchasing Agreement with the Texas Local Government Purchasing
Cooperative (TLGPC). The ambulance will be used by the Fire Department. This unit is
an addition to the fleet. Financing will be provided through the City's lease/purchase
financing program.
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
* * * * * * * * * * * * *
Mayor Neal opened discussion on Item 12, upgrade of the city's local area network. City
Secretary Chapa said the amount in Item 12.b. needs to be amended from $157,767.25 to
Minutes — Regular Council Meeting
February 25, 2003 — Page 7
$183,437.70. Mr. Colmenero made a motion to amend as stated by Mr. Chapa, seconded by Mr.
Kinnison, and passed. Mr. Chapa polled the Council for their votes as follows:
12.a. ORDINANCE NO. 025209
Ordinance appropriating $89,400 from the Unreserved Fund Balance in the No. 5210
Municipal Information System (MIS) Fund to provide funding for an upgrade of the
City's local area network (LAN) infrastructure and provide accurate profile information
in 911; amending the FY2002-2003 Operating Budget adopted by Ordinance No. 024974
by increasing appropriations by $89,400.
An emergency was declared and the foregoing ordinance passed: Neal, Colmenero,
Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
12.b. M2003-086
Motion authorizing the Acting City Manager or his designee to execute a contract with
Logical Networks, Inc. of Irving, Texas for the purchase of Cisco network equipment in
the amount of $183,437.70 in accordance with the State of Texas Qualified Information
Services Vendor (QISV) Program to be financed over a thirty-six month period through
our Lease Finance Program.
The foregoing motion passed, as amended, by the following vote: Neal, Colmenero,
Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
12.c. M2003-087
Motion authorizing the Acting City Manager or his designee to enter into a contract with
Logical Networks, Inc. of Irving, Texas for installation, migration and configuration
services in the amount of $89,400 in accordance with the State of Texas Qualified
Information Services Vendor (QISV) Program.
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
* * * * * * * * * * * *
*
Mayor Neal recessed the regular Council meeting for the meetings of the Tax Increment
Reinvestment Zone No. 2 and the North Padre Island Development Corporation.
* * * * * * * * * * * *
*
Upon reconvening the regular meeting, Mayor Neal opened discussion on Items 17, 18
and 19 regarding the Tax Increment Reinvestment Zone No. 2. City Secretary Chapa said that
Council Members Garrett and Kelly would be abstaining on Items 17, 18 and 19. There were no
comments from the Council or the audience on the three items. Mr. Chapa polled the Council for
their votes as follows:
Minutes — Regular Council Meeting
February 25, 2003 — Page 8
17. ORDINANCE NO. 025215
Ordinance approving a final project and financing plan for the "Reinvestment Zone
Number Two, City of Corpus Christi, Texas"; approving the sale of bonds by North
Padre Island Development Corporation in furtherance of the final project and financing
plan; and other matters related thereto.
An emergency was declared and the foregoing ordinance passed: Neal, Colmenero,
Longoria, Noyola, and Scott voting "Aye"; Kinnison voting "No"; Garrett and Kelly
abstaining; Chesney absent.
18. RESOLUTION NO. 025216
Resolution approving the project and financing plan for the Zone and recommending its
approval to the City Council of the City of Corpus Christi, Texas, and approving the
execution of a Tri -Party Agreement with respect to the project and financing plan.
The foregoing resolution passed by the following vote: Neal, Colmenero, Longoria,
Noyola, and Scott voting "Aye"; Kinnison voting "No"; Garrett and Kelly abstaining;
Chesney absent.
19. RESOLUTION NO. 025217
Resolution authorizing the issuance of North Padre Island Development Corporation Tax
Increment Contract Revenue Bonds, Series 2003, in an aggregate principal amount not to
exceed $3,000,000; approving an Indenture of Trust and other contract documents
relating to the bonds; and containing other provisions related thereto.
The foregoing resolution passed by the following vote: Neal, Colmenero, Kinnison,
Longoria, Noyola, and Scott voting "Aye"; Garrett and Kelly abstaining; Chesney absent.
City Secretary Chapa stated that Items 20.a. and 20.b. have been withdrawn.
20.a. WITHDRAWN
20.b. WITHDRAWN
Minutes — Regular Council Meeting
February 25, 2003 — Page 9
* * * * * * * * * * * * *
Mayor Neal referred to the presentations on the day's agenda. The first presentation (Item
21) was regarding the Urban Transportation Plan (UTP), an element of the Comprehensive Plan.
Acting City Manager Noe said that if the Council concurs, staff will schedule a public hearing on
this issue on March 11, 2003.
Mr. Michael Gunning, Director of Planning, explained that all of the street elements of
the transportation plan were contained within 10 different area development plans, which
resulted in a cumbersome development process. He said Planning Department staff worked with
staff from the city's Engineering Services Department and others in creating the UTP.
Mr. Bob Payne, Senior City Planner, discussed the importance of developing an accurate
city transportation plan, which is required in the City Charter. He said the UTP is the first phase
of a three-phase process to combine comprehensive plans into a citywide plan; phase 2 will
combine the future land use into a citywide plan and phase 3 will update the Corpus Christi
policy statements and incorporate the area development plan text and maps.
Mr. Payne said issues in the transportation plan include a future street network to
minimize traffic congestion; consolidation of transportation plans; sidewalks which meet ADA
standards; bikeways which meet the American Association of State Highway and Transportation
Officials standards; and street alignment and network changes. He said the plan will minimize
the future purchase of rights-of-way and will address collector and arterial streets.
Mr. Payne then compared the city's existing plan with the proposed plan's right-of-way
requirements. He also listed the entities which have reviewed and endorsed the plan, including
the Regional Transportation Authority, Port of Corpus Christi Authority, Nueces County, Texas
Department of Transportation (cross-section design), Chamber of Commerce Transportation
Subcommittee, Metropolitan Planning Organization Technical Advisory Committee,
Development Services Advisory Committee, Transportation Advisory Committee, and city
Planning Commission.
Assistant City Manager Ron Massey, Engineering Services Director Angel Escobar, Mr.
Gunning and Mr. Payne then responded to Council members' questions regarding elements of
the proposed UTP, including the south loop design, ROW issues, SPID, and FM 2444.
* * * * * * * * * * * * *
The second presentation (Item 22) was regarding the existing and proposed recharge
dams in the Nueces River Basin. Mr. Massey said the Edwards Aquifer Authority owns three
existing projects in the Nueces River watershed and the San Antonio Water System and its
partners are seeking permits for four new projects. He noted that Corpus Christi's reservoirs are
located downstream from the recharge dams and much of the retained water will not make it to
the city's reservoirs. He then introduced Mr. Ken Choffel, Vice President of HDR Engineering.
Mr. Choffel discussed how recharge projects work and the capacity of the proposed
recharge projects compared to the capacity of the city's reservoirs. He said the cost of those
projects is as follows (mid -1999 prices): Frio, $34.8 million; Sabinal, $10.4 million; Hondo,
Minutes — Regular Council Meeting
February 25, 2003 — Page 10
$13.3 million; and Verde, $6.5 million, for a total of $65 million. He noted that significant
channel losses can occur in the Nueces River basin.
Mr. Choffel also described the effects of recharge dams on the city's senior water rights,
the firm yield impact and replacement water requirements, and previous options considered to
offset firm yield impacts. He pointed out that the cost of replacement water would be paid by the
recharge project sponsors. He said that federal funds are available through the Corps of
Engineers (COE) for projects which include "ecosystem restoration" or "flood damage
reduction," and those funds can pay for up to 50% of study costs and 65% of construction costs.
He said the COE 2002 reconnaissance study identified several projects which could
benefit the city: desalination project at the Barney Davis Plant; Cotulla diversion to enhance the
Choke Canyon storage; a two-way pipe project between Choke Canyon Reservoir and Lake
Corpus Christi to minimize channel losses; and additional wastewater diversions to the Nueces
River Delta. He said they recommend that the city work with the recharge project sponsors
through the COE study to ensure that appropriate mitigation is included to compensate the city,
and that the city work with the COE and other sponsors (including the state desalination
initiative) on projects which will increase the city's water supply and enhance the productivity of
the Nueces Estuary.
Mr. Massey said the existing recharge dams were built in the 1970s primarily for flood
control but they also pump for the Edwards Aquifer and require continuous evaluation. He said
the city is participating with other cities and the Nueces River Authority in working with the
COE and potential project sponsors on possible federal funding sources.
Mayor Neal asked if the city will have any input on the location of the recharge projects.
Mr. Massey said not with the location but with the design of the projects as well as mitigation.
He said one option is to allow another entity to divert some of the city's water without giving up
any water rights. Mr. Massey and Mr. Choffel responded to other questions from the Council.
* * * * * * * * * * * * *
The third presentation (Item 23) was the FY 2002-2003 second quarter budget and
performance report. Mr. Mark McDaniel, Director of Management and Budget, pointed out that
the beginning fund balances for this report reflect estimates but will be adjusted to the audited
figures for the third quarter. Also, as part of staff's continuing efforts to enhance reporting,
graphs and data depicting trends for major revenues have been included in a new "Financial
Indices" section.
Mr. McDaniel said that with regard to a three-year comparison year to date of General
Fund revenues, anticipated collections are right where they should be with a few notable
exceptions. He said the sales tax revenues are $230,000 lower compared to what was budgeted
and staff will continue to monitor that figure. Another item of interest is an out -of -period
adjustment for prior year revenue and it is classified as a revenue adjustment on the expenditure
side. He also discussed Municipal Court revenues and the affect of the Attorney General's
opinion that the city cannot collect on cases that were not yet adjudicated.
Minutes — Regular Council Meeting
February 25, 2003 — Page 11
Mr. McDaniel said the General Fund expenditures are also within tolerances with some
qualifications. He said some departments had slightly higher expenditures, such as Animal
Control and Solid Waste. He said staff will try to make up those costs by the end of the year. He
also discussed revenues for the Enterprise Funds, pointing out that water sales are down because
of the wet winter the area has had while gas revenues are higher due to the pass-through cost for
the purchase of gas. He said revenues have improved in the Ambulance Fund due to new
Medicare reimbursement fee structures.
The Budget Director said that with the exception of the Maintenance Services Fund, all
the Internal Services Fund as a percent of total budget are comparable to the last two years. He
said the expenditures for the Internal Services Fund are below the 50% mark at mid -year. He
said Special Revenue Funds are also on target for revenues with the positive exception of the
Reinvestment Zone No. 2 (Packery Channel) and LEPC. He said the notable exceptions for the
expenditures are the seawall improvements and arena facility because the projects are underway.
Mr. McDaniel also discussed the new financial indices section, including the sales tax
analysis, franchise revenue trends, water sales, hotel occupancy tax trends and airport activity. In
summary, he said the mid -year major issues are the sales tax forecast, projected salary savings,
fuel and power costs, storm -related costs and the general financial condition. He said he meets
with the department heads on a regular basis to help them analyze their budgets. Mayor Neal said
he wants staff to very carefully manage the city's expenditures for the rest of the fiscal year. Mr.
McDaniel then replied to Council members' questions.
* * * * * * * * * * * * *
The fourth presentation (Item 24) was regarding the Comprehensive Annual Financial
Report (CAFR) for the fiscal year ending July 31, 2002. Acting City Manager Noe said the
CAFR is not yet complete but Mr. John Shepherd, of Collier, Johnson and Woods, has
committed to finish it and distribute it to the Council via their packets on February 28, 2003.
Ms. Lee Ann Dumbauld, Director of Finance, said the CAFR includes a new section that
is required by GASB 34 called management's discussion and analysis. She said the fund balance
has been increased by 31% over the prior year's results in the General Fund, which is 10.7% of
the $128 million in expenditures. She said the undesignated and unreserved amount was $10.4
million or 8.2% of the expenditures. She added that governmental activities and business -type
activities are separated while everything the city does will be shown on the first set of
statements. Ms. Dumbauld said the CAFR will also be available on CD and on the city's website.
Mr. Noe commended Ms. Dumbauld and the Finance Department staff for their efforts.
Mayor Neal asked how the city will judge what it is doing in the future against what other cities
are doing. Ms. Dumbauld said the ratios are being reintroduced in different ways. Mr. Noe said
the rating agencies will give the city some standards to follow. He added that Corpus Christi
already participates in a best -practices information sharing on the service delivery side of the
financials. Ms. Dumbauld thanked in particular Ms. Janie Baysinger for her work on the CAFR.
* * * * * * * * * * * * *
Minutes — Regular Council Meeting
February 25, 2003 — Page 12
Mayor Neal called for petitions from the audience on non -agenda items and there were
none. He then announced the executive sessions, which were listed on the agenda as follows:
25. Executive session pursuant to Texas Government Code Section 551.071 regarding the
following construction contracts: Mustang Island Fire and Parks & Recreation Station -
Project No. 5114; Improvements to Fire Stations (ADA/Co-ed) - Project No. 5115, with
possible discussion and action related thereto in open session.
26. Executive session pursuant to Texas Government Code Section 551.071 for legal advise
regarding potential litigation relating to Spur 3, with possible discussion and action
related thereto in open session.
The Council went into executive session. The Council returned from executive session.
The following motions and ordinances were moved, seconded and passed as follows:
25.a. M2003-088
Motion authorizing the Acting City Manager to execute a Tender, Completion and
Release Agreement between the City of Corpus Christi, Continental Casualty Insurance
Company, and Ground Up Inc., dba Construction Project Management, relating to the
Mustang Island Fire and Park and Recreation Station, Project No. 5114.
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
25.b. ORDINANCE NO. 025218
Ordinance appropriating $280,351.84 from CNA Surety Company and Continental
Casualty Company in the Public Health and Safety Fund No. 3358 for the Corpus Christi
Mustang Island Fire and Park and Recreation Station, Project No. 5114; amending the
Capital Budget, adopted by Ordinance No. 025144, by increasing appropriations by
$280,351.84.
An emergency was declared and the foregoing ordinance passed: Neal, Colmenero,
Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
25.c. M2003-089
Motion authorizing the Acting City Manager to execute a Tender, Completion and
Release Agreement between the City of Corpus Christi, Continental Casualty Insurance
Company and Sal -Con Inc. relating to the Fire Station improvements, ADA compliance,
and co-ed improvements, Project 5115.
The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly,
Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
Minutes — Regular Council Meeting
February 25, 2003 — Page 13
25.d. ORDINANCE NO. 025219
Ordinance appropriating $132,915.33 from CNA Surety Company and Continental
Casualty Company in the Public Health and Safety Fund No. 3358 for the Corpus Christi
Fire Station improvements, ADA compliance, and co-ed improvements, Project 5115;
amending the Capital Budget, adopted by Ordinance No. 025144, by increasing
appropriations by $132,915.33.
An emergency was declared and the foregoing ordinance passed: Neal, Colmenero,
Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent.
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Mayor Neal called for the City Manager's report. Acting City Manager Noe said the city
received four advertising awards: gold awards for the website and for the ad campaign in
cooperation with TXDOT regarding underage drinking; and silver awards for the promotion of
the website and for one of the seascape programs. Mr. Noe said that on February 26, 2003 Mr.
Escobar will be briefing the Nueces County Commissioners Court on the stormwater master
plan. He said the discussion on the child safety fee has been rescheduled for March 5th. He said
there will be a ribbon -cutting ceremony on February 26th for the new Mildred and Lloyd
Sessions Tennis Pavilion at the HEB Tennis Center and on February 27th there is a meeting with
residents in the Oveal Williams area regarding rezoning of that area. He added that there is a
regular Council meeting on March 4`h.
Mayor Neal asked staff to explain the possible implications of the purchase of the El
Centro Landfill by BFI and he asked staff to schedule a discussion in executive session regarding
the issue raised by Mr. William H. Berry. The Mayor then called for Council concerns.
Mr. Kinnison said he would like the Council to consider instructing Mr. Noe to
effectively terminate the policy the Council adopted last fall regarding requiring city employees
to notify the Council about any media contacts. He said the Council had good intentions when
establishing that policy and the reports served good purposes from time to time but there appear
to be fewer advantages now. Mr. Longoria said he wants to be sure that the Council is not
restricting the City Manager's right to do what he needs to do. Mayor Neal asked Mr. Chapa if a
vote needed to be taken. City Secretary Chapa said that Mr. Noe takes direction from the
consensus of the Council and there appeared to be a consensus to terminate the policy as
suggested by Mr. Kinnison. No opposition was voiced.
Mr. Longoria commented on the traffic flow around the convention center. Mr. Noe said
staff is reviewing the management of all the parking lots in that area. Mr. Longoria said he wants
to ensure that there is a pedestrian promenade and he requested a public service announcement
about the number of people who are killed when running red lights. He also said he thinks the
call service center has great potential.
Mr. Kelly said he received a letter from a citizen on Rand Morgan who received an
excessive water bill and had many associated problems. He also commented on the northside
plan and congratulated staff on the good news about the Wesley Seale Dam.
Minutes — Regular Council Meeting
February 25, 2003 — Page 14
Mr. Scott said he received a letter from Ms. Becky Garner regarding different food and
beverage companies working at the convention center. Mr. Noe said the Council's direction was
that renters would continue to have access to local caterers. Mr. Scott asked if staff has
completed the negotiations with SMG. Mr. Noe said he hopes they can conclude the negotiations
by the end of this week. Mr. Scott asked if the city is taking too long to pay developers. Mr.
Gunning said the only time there were delays was when there was missing information on the
construction cost estimates. Mr. Noe said staff will look for ways to reduce that time line. With
regard to the seawall project, Mr. Noe said the percentage for art allocation from that project
cannot be put in the Permanent Art Trust Fund and used for art. Mr. Scott said a constituent feels
the city is not doing enough to help the non-profit agencies in the adoption of animals, and he
asked about parking possibilities near the arena, which Mr. Noe discussed. Mr. Scott said a city
employee threw large rocks into a property owner's yard in the process of repairing the potholes
on that street.
Mr. Noyola said he was glad the Council did away with the policy regarding media
contacts and he said he thinks city employees should be allowed to participate in city elections.
There being no further business to come before the Council, Mayor Neal adjourned the
Council meeting at 6:10 p.m. on February 25, 2003.
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