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HomeMy WebLinkAboutMinutes City Council - 03/22/2005I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Regular Meeting of the Corpus Christi City Council of March 22, 2005, which were approved by the City Council on March 29, 2005. WITNESSETH MY HAND AND SEAL, on this the 30th day of March, 2005. Armando Chapa City Secretary SEAL PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Bill Kelly Council Members: Javier Colmenero Brent Chesney Melody Cooper Henry Garrett Rex Kinnison Jesse Noyola Mark Scott MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting March 22, 2005 - 10:00 a.m. City Staff: City Manager George K. Noe City Attorney Mary Kay Fischer City Secretary Armando Chapa Mayor Neal called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Pastor Mark Behrendt and the Pledge of Allegiance to the United States flag was led by Council Member Colmenero. 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 March 8, 2005. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * * * * Mayor Neal announced the executive sessions, which were listed on the agenda as follows: 23. Executive session under Texas Government Code Section 551.071 regarding Cause No. 04- 06556-A, City of Corpus Christi, Texas vs. Air Liquide America, L.P., et al, in the District Court of Nueces County, Texas, 28`h Judicial District, with possible discussion and action related thereto in open session. 24. Executive session under Texas Government Code Section 551.071 regarding permitting issues related to the Allison Wastewater Treatment Plant, with possible discussion and action related thereto in open session. 25. Executive session under Texas Government Code Section 551.071 regarding permitting issues related to the Greenwood Wastewater Treatment Plant, with possible discussion and action related thereto in open session. 26. Executive session under Texas Government Code Section 551.071 regarding legal issues relating to the acquisition of property for a new wastewater treatment plant to replace the Broadway Wastewater Treatment Plant, with possible discussion and action related thereto in open session. The Council went into executive session. The Council returned from executive session and the following items were passed with the following vote: Minutes - Regular Council Meeting March 22, 2005 - Page 2 23. ORDINANCE NO. 026181 Appropriating $76,800 from the unappropriated settlement proceeds from Gulfterra Energy Partners, L.P. in City Hall CIP Fund 3160; transferring $76,800 to and appropriating in General Fund 1020 Legal Services for professional services to obtain compensation from pipeline companies for use of city property; amending 2003-04 Capital Budget adopted by Ordinance 025647 to increase appropriations by $76,800; amending FY 2004-05 Operating Budget adopted by Ordinance 025878 to increase appropriations by $76,800; transferring $107,000 appropriated in Ordinance 025978 in General Fund 1020 Legal Services for professional services; and declaring an emergency. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 25. MOTION NO. 2005-101 Motion authorizing the City Manager to execute a legal services agreement with Martin Rochelle of Lloyd, Gosselink, Blevins, Rochelle & Townsend, P.C., to provide legal services related to renewal and modification of the TPDES permit for the Greenwood WWTP, at an hourly rate that does not exceed $250.00, plus expenses subject to certification of funds. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 26. MOTION NO. 2005-102 Motion authorizing the City Manager to execute an amendment to the legal services agreement with Michael J. Nasi of Lloyd, Gosselink, Blevins, Rochelle & Townsend, P.C., to provide legal services related to environmental issues involved with the acquisition of a site for a new wastewater treatment plant to replace the Broadway WWTP, at an hourly rate of $210.00, plus expenses (including the hiring of environmental consultants), subject to certification of funds. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". * * * * * * * * * * * * * Mayor Neal referred to Item 2 and the following board appointment was made: Airport Board William D. Dodge III * * * * * * * * * * * * * Mayor Neal called for consideration of the consent agenda (Items 3-17). City Secretary Minutes - Regular Council Meeting March 22, 2005 - Page 3 Chapa announced that Council Member Kelly was abstaining from the vote and discussion on Item 13. Council members requested that Items 6 and 9 be discussed. There were no comments from the public. A motion was made and passed to approve Items 3 through 17, constituting the consent agenda, except for Items 6 and 9, which were pulled for individual consideration. City Secretary Chapa polled the Council for their votes as follows: 3.a. ORDINANCE NO. 026174 Ordinance approving transfer of $8,370.23 from Water Fund No. 4010, $3,472.36 from Wastewater Fund No. 4200, and $36.55 from Gas Fund No. 4130; to an appropriating in General Fund No. 1020 for Central Cashiering Surveillance System; amending Budget adopted by Ordinance No. 025878 to increase revenues and appropriations by $11,879.14 each. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 3.b. MOTION NO. 2005-090 Motion approving the purchase of a surveillance system for Central Cashiering from Total Protections Systems, Inc., of Corpus Christi, Texas in the amount of $36,551.21 based on the Cooperative Purchasing Agreement with the State of Texas. Funds are available in the Water, Wastewater and Gas Utility Funds and Central Cashiering Operations Budget for FY 2004-2005. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 4. MOTION NO. 2005-091 Motion approving a supply agreement for approximately 400,000 gallons of emulsified polymerized asphalt (HFRS-2P) in accordance with Bid Invitation No. BI -0067-05 with Koch Materials Company, of Corpus Christi, Texas based on only bid for an estimated annual expenditure of $472,000. 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 FY 2004-2005. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". notes - Regular Council Meeting March 22, 2005 - Page 4 5. MOTION NO. 2005-092 Motion approving the purchase of body armor protective vests from Manny Trevino Enterprises, of San Antonio, Texas in accordance with Bid Invitation No. BI -0025-05 based on low bid meeting specifications for the total amount of $44,037.36. Funds are available from the Law Enforcement Trust Fund. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 7.a. RESOLUTION NO. 026176 Resolution authorizing the City Manager or his designee to accept a grant from the Texas Department of State Health Services (DSHS) in the amount of $89,782 for diabetes prevention and management services. The foregoing resolution was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 7.b. ORDINANCE NO. 026177 Ordinance appropriating a grant from the Texas Department of State Health Services (DSHS) in the amount of $89,782 in the No. 1066 Health Grants Fund for diabetes prevention and management services. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 8. MOTION NO. 2005-093 Motion authorizing the City Manager or his designee to execute Change Order No. 7 to a contract with Jalco, Inc., of Houston, Texas in the amount of $233,309.66 for the Northside/Port Area Infrastructure Improvements. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 10. MOTION NO. 2005-095 Motion authorizing the City Manager or his designee to execute Change Order No. 5 to the contract with Barcom Commercial, Inc., of Corpus Christi, Texas in the amount of $27,968.60 for the City Hall Renovation and Space Utilization. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". Minutes - Regular Council Meeting March 22, 2005 - Page 5 11.a. ORDINANCE NO. 026178 Ordinance appropriating $3,682.45 from interest earnings into the Street 1995 B Capital Improvement Program Fund No. 3538 for the Advanced Fund Agreement Sidewalk Accessibility Improvement Project with Texas Department of Transportation (TxDOT); amending the Capital Budget adopted by Ordinance No. 025647 by increasing appropriations by $3,682.45. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 11.b. MOTION NO. 2005-096 Motion authorizing the City Manager or his designee to increase the escrow amount of the Advanced Funding Agreement with the Texas Department of Transportation (TxDOT) in the estimated amount of $216,355.10 for construction of barrier free ramps and sidewalks at selected street locations associated with the Sidewalk Accessibility Improvements project. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 12. MOTION NO. 2005-097 Motion authorizing the City Manager or his designee to execute Amendment No. 4 for construction and management services with Anderson Group Construction Management, Inc., of Corpus Christi, Texas in the amount of $750,000 for various Capital Improvement Projects associated with the 2005 Capital Budget. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 13. MOTION NO. 2005-098 Motion authorizing the City Manager or his designee to execute Change Order No. 5 with the Construction Manager at Risk contract with Fulton/Coastcon and Hunt Construction Group, Joint Venture, of Corpus Christi, Texas and Indianapolis, Indiana in the amount of $297,004 for installation of additional improvements at Whataburger Field and increasing the Guaranteed Maximum Price to $23,090,826 for construction for the Professional Minor League Baseball Stadium. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kinnison, Noyola and Scott, voting "Aye"; Kelly abstained. Minutes - Regular Council Meeting March 22, 2005 - Page 6 14. ORDINANCE NO. 026179 Ordinance rescinding Ordinance No. 025965 which authorized the abandoning and vacating of a 27,082 -square foot portion of an undeveloped and unsurfaced 60 foot wide dedicated public right-of-way (Seabreeze Drive) extending 451 linear feet north of South Padre Island Drive, out of Lot A, Block 2 and Lot A, Block 3, Southbay Addition Annex. (Ordinance No. 025965 was approved by Council on September 21, 2004) An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 15. ORDINANCE NO. 026180 Ordinance abandoning and vacating a 9,498.10 -square foot portion of a 10 -foot wide utility easement out of Lot 1, Section 2, Nueces River Irrigation Park, located south of Northwest Boulevard (Farm -to -Market Road 624), west of County Road 69; subject to compliance with the specified conditions. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 16. MOTION NO. 2005-099 Motion to amend Ordinance No. 026123 ordering a General Election by amending Attachment B Mobile Voting Schedule to provide for Mobile Voting at Island Presbyterian Church, 14030 Fortuna Bay. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 17. MOTION NO. 2005-100 Motion approving the application from the Buccaneer Commission to temporarily close the following street sections for the 4th Annual "Buc Days BBQ Challenge and Rodeo" Festival, April 7, 2005 through April 17, 2005, and the annual Buccaneer Days Carnival. 1. The temporary street closures of both legs of Shoreline Boulevard, northbound and southbound from the north side of Power Street to the South Texas Art Museum for the 46 Annual Buc Days Rodeo and BBQ Challenge beginning at 8:00 a.m., April 7, 2005 to 4:00 p.m., April 17, 2005. 2. Additionally, Palo Alto and Fitzgerald Streets from southbound Shoreline Boulevard to Water Street will require temporary closures for the annual Buc Days Rodeo and BBQ Challenge beginning at 8:00 a.m, April 7, 2005 to 4:00 p.m., April 17, 2005. Minutes - Regular Council Meeting March 22, 2005 - Page 7 3. In cooperation with the Texas Department of Transportation, North Broadway, including the area under United States 181 Harbor Bridge, between Fitzgerald and Brewster Streets will require temporary closure for staging of professional rodeo cowboy trucks and trailers beginning Tuesday, April 12, 2005 beginning at 8:00 a.m. through Sunday, April 17, 2005 to 9:00 p.m.. 4. Temporary closure of north portion of Fitzgerald Street between North Broadway and Mesquite beginning at 8:00 a.m. on Tuesday, April 12, 2005 to Sunday, April 17, 2005 no later than 9:00 p.m. 5. Temporary street closure of Park Avenue between southbound and northbound Shoreline Boulevard from April 18, 2005 through 5:00 p.m., May 2, 2005 for the purpose of setting up the annual Buccaneer Days Carnival. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". Mayor Neal opened discussion on Item 6 regarding a Justice Assistance Grant (JAG) to be shared between the city and Nueces County. Mr. Kelly cited this item as an example of successful cooperation between the city and county, and he asked for more information. City Manager Noe replied this was a federal grant that required cooperation and sharing between the law enforcement agencies of the city and the county. He said the city had developed a long-standing relationship with the Nueces County Sheriffs Department to a 50-50 split of the allocation. Police Commander Brian Uhler added the federal government had recently changed a number of rules that now required a joint application indicating which entity would serve as the applicant/fiscal agent for the joint funds. He said staff met with county representatives, and drafted an agreement that stipulated the city would serve as the lead agency on the grant. Mr. Randy Stoneroad, Police Legal Advisor, stated staffs meeting with the county was very productive, resulting in the Nueces County Commissioners Court's prompt approval of the application within 24 hours. City Secretary Chapa polled the Council for their votes as follows: 6. RESOLUTION NO. 026175 Resolution authorizing the City Manager or his designee to execute an Interlocal Agreement between the City of Corpus Christi, Texas (City) and Nueces County, Texas (County) to establish terms for sharing funds from the 2005 Edward Byrne Memorial Justice Assistance Grant (JAG) Program Award and approving the submission of a grant application in the amount of $258,284 to the United States Department of Justice, Bureau of Justice Assistance, for funds available under the FY 2005 JAG Grant, whereas 50% of funds received under said grant will be retained by the City and 50% will be distributed to the County; all funds to be used by Corpus Christi Police Department and Nueces County during FY 2005-2006 for the enhancement of law enforcement. The foregoing resolution was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". Mayor Neal opened discussion on Item 9 regarding the contract for the Police and Fire Public Minutes - Regular Council Meeting March 22, 2005 - Page 8 Safety Training Facility, Phase 1. Mr. Kelly highlighted the fact the city was moving forward with the Police and Fire Training Center, contrary to popular belief. Mr. Noe stated he had heard the same reports, but there actually was ongoing construction at the site. Assistant Director of Engineering Services Kevin Stowers stated the estimated construction completion time for the project was at the end of April. Mr. Noe pointed out staff had mistakenly attached the wrong background information for this item in the agenda book. Mr. Stowers stated he had replacement materials available for the Council, and distributed them. City Secretary Chapa polled the Council for their votes as follows: 9. MOTION NO. 2005-094 Motion authorizing the City Manager or his designee to execute Change Order No. I to the contract with Barcom Commercial, Inc., of Corpus Christi, Texas in the amount of $52,270 for installation of an irrigation system and hydromulch seeding for the Police and Fire Public Safety Training Facility, Phase 1. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". * * * * * * * * * * * * * Mayor Neal referred to Item 18.a., and a motion was made, seconded and passed to open the public hearing on the following variance request: 18.a. Public hearing on request for a variance to operate an establishment with on -premise consumption of alcoholic beverages. Assistant Director of Development Services Michael Gunning reported the Council tabled this case on February 15, 2005 to allow the applicant an opportunity to meet with the Tuloso- Midway Independent School District (TM LSD) officials, who were opposed to the variance request. Mr. Gunning stated the applicant was Mr. Benigno Sanchez, owner of the Casa Del Sol Restaurant, formerly known as Chela's Restaurant. Mr. Gunning stated that on February 15, staff had recommended the approval of the variance to allow the applicant to serve beer and wine with meals at the restaurant, which had been in business since the early 1970s. He noted staff had notified all property owners within 300 feet of the subject property requesting the variance. Staff had not received any notices opposing the request at the time of the meeting. Mr. Gunning stated, however, that TMISD Superintendent Dr. Karen Rue had since submitted a letter expressing the school district's firm opposition to any alcohol consumption in such close proximity to their middle school (60 feet). She said the school did have after school activities which continued from the early morning hours to the evening. Mr. Gunning also understood the Baptist church located within 300 feet of the restaurant was also opposed to the variance request, although he had not received written notice regarding their position. Thus, Mr. Gunning stated staff was now recommending the denial of the variance request. Mayor Neal asked for public comment. Pastor John McAllister of Gateway Baptist Church stated his church was firmly opposed to the variance request due to safety concerns related to the Minutes - Regular Council Meeting March 22, 2005 - Page 9 potential increase in intoxicated drivers in the area if the variance was approved. Mr. Kelly made a motion to close the public hearing, seconded by Ms. Cooper, and passed. Mr. Noyola spoke in favor of granting the variance request. He pointed out that there had been no reported alcohol-related problems at Chela's Restaurant in the past. He said most patrons went to the restaurant to dine, and thus, alcohol consumption was incidental. He did not believe granting the variance would lead to an increase in intoxicated drivers. Mr. Kelly spoke against granting the variance request. He said it was unclear to him if beer and wine sales were a significant part of the new applicant's business plan. He said it was clear, however, that the school district, the church, and the community were solidly opposed to the variance request. City Secretary Chapa polled the Council for their votes as follows: 18.b. FAILED S - cSuluUOu g, dutnig d V ai ianc ,, u,leu of , to BL,„g cc. w upc, atc c awoum,c, vc v u agc w,avuauu,uu ,uc a. Y The foregoing resolution failed with the following vote: Noyola, voting "Aye"; Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, and Scott, voting "No". * * * * * * * * * * * * * Mayor Neal referred to the presentations on the day's agenda. The first presentation was a quarterly report from Work -Force 1. Ms. Irma Caballero, Work -Force 1 Chairman of the Board, introduced Ms. Mary Ann Rojas, the new President of the Work -Force 1 Board. Ms. Rojas was formerly the President of the Work -Force 1 Board in Lubbock, Texas, and under her leadership, this board was ranked second in the State. Ms. Caballero stated the Board felt she was the best candidate to move the organization forward in their regional economic development efforts. Ms. Rojas reported on a number of Work -Force 1 initiatives. On March 31, Work -Force 1 was hosting a regional employer forum. She explained the forum was a result of one of the initiatives from the Governor's Office, which promoted grouping area industries into clusters to determine the priorities for each industry. In the Corpus Christi area, Ms. Rojas stated the energy cluster and the petrochemical cluster were dominant. She suggested the Council encourage any individuals working in these clusters to attend this forum. The information gathered from the forum would be submitted to the Governor's Office in a full report. Ms. Rojas reported on a second initiative, a grant award to study re-employment and eligibility assessment for unemployment insurance claimants. She said the Coastal Bend was one of the workforce areas selected as part of this study, which will look at ways to bring unemployed individuals back into the workforce more quickly. Ms. Rojas said the potential unemployment insurance saving to the Corpus Christi employers was $582,960, and approximately $3 million in Texas. Ms. Rojas briefly discussed a number of future initiatives as follows: to achieve greater Min :Les - Regular Council Meeting March 22, 2005 - Page 10 community engagement; to develop strategies for increasing awareness in the business community; to coordinate economic development between the region's urban and rural areas; to streamline Work - Force 1 operations; and to make improvements to Work -Force 1 facilities and infrastructure. report. Mayor Neal welcomed Ms. Rojas to the Corpus Christi area, and he thanked her for the * * * * * * * * * * * ** The second presentation was the 2"d Quarter FY 2004-2005 Budget/Performance Report. Assistant City Manager Oscar Martinez reported the information in the report was for the period ending January 31, 2005, exactly six months into the fiscal year. With 50 percent of the fiscal year completed, he said combined revenues were ahead of projections at 54.25 percent, and expenditures were below projections at the 44.57 percent level. He thanked all city departments for their fiscal discipline. Mr. Martinez discussed the general fund revenues. Regarding current ad valorem property taxes, he said revenues were actually one million dollars ahead in real dollars from last year. He said the city was on target to meet budget in this area. With regard to industrial district payments, he said current year billings had been sent and reflected a slight decrease over last year due to the decrease in the tax rate and a decrease in valuations. Revenues were not predicted to be realized at the level budgeted. Mr. Martinez stated that the year-to-date (YTD) collections for sales tax revenue are consistent with projections for this year, and are ahead of the same period last year. He said second quarter actual amounts reflect a 1.8 percent increase over the YTD budget, equivalent to approximately $1 million more than the same time last year. In response to Mr. Scott's question, Mr. Noe stated the YTD sales tax revenues were approximately 5 percent over last year's revenues. Mr. Martinez reported that YTD collections for franchise fees were less than the YTD budget. He said staff was expecting a shortfall in this area mainly due to a decrease in the number of phone lines reported. Solid waste services revenues were higher than the YTD budget, reflecting a $362,792 increase. Mr. Martinez stated this was mainly due to increased activity from a number of large vendors. YTD revenues from Municipal Court fees were $394,291 higher than the YTD budget, mainly due to increased collections efforts, such as the "Failure to Appear Warrant". Mr. Martinez reported museum revenues were lower than the YTD budget, mirroring nationwide downward trends in museum attendance. Additionally, he said the construction in the area has also hindered attendance. Recreation services revenues were also lower than the YTD budget, mainly due to a decline in Latchkey program revenue. He said, however, that Latchkey revenues were slightly above the levels attained last year at this time. Minutes - Regular Council Meeting March 22, 2005 - Page 11 Finally, Mr. Martinez reported that public safety services revenues were also slightly less than budgeted amounts, primarily due to changs in Wireline Service Revenue, police towing and storage charges, and 800 MHZ radio changes. Mr. Martinez reported on general fund expenditures. As he previously mentioned, with 50 percent of the fiscal year completed, 46.4 percent of the general fund budget had been expended. He said this was equivalent to $5.4 million under the YTD budget. There were no significant unfavorable variances among city departments and individual operating divisions. Mr. Martinez referred to a number of bar graphs illustrating the YTD revenue trends in percentages and in millions of dollars. Overall, he said FY 2005 combined revenues were $90.8 million, compared with $89 million at the same time last year, a $1.8 million increase. Mr. Martinez referred to a number of charts illustrating YTD expenditure trends in percentages and in millions of dollars. He said all of the departments were below the percentage of budget spent last year, a positive sign. In total, he said the city had spent $73.1 million in expenditures, compared to $69.7 million last year. However, he said the increased expenditures were primarily limited to public safety, municipal court, street maintenance, and engineering services. Mr. Martinez discussed the status of the enterprise funds, comprised of the water, gas, wastewater, airport, development services, ambulance, golf centers, and marina funds. With regard to the water fund, he said the YTD revenue of $38,907,522 represented 52.06 percent of budgeted revenues, which was greater than the same period in the prior year. This was mainly due to an increase in water usage for residential and commercial customers inside the city. Overall, he said YTD expenditures were $34,645,354 or 42.71 percent of budget. Regarding the gas fund, Mr. Martinez stated the YTD revenue of $15,951,380 represented 45.81 percent of budgeted revenue, which was higher than revenue collected for the same period in the prior year. He said YTD expenditures are $15,286,915 or 42.28 percent of the budget. With regard to the wastewater fund, Mr. Martinez said YTD revenue of $17,877,824 represented 51.68 percent of the budget, which was more than amounts collected for the same period in the prior year. YTD expenditures of $16,079,362 reflected 45.87 percent of budget. The airport fund showed revenues of $4,049,190 or 53.31 percent in collections for this quarter reflecting the impact of the terminal completion, and upgrade of parking facilities which has helped boost revenue. YTD expenditures are $3,865,100 or 49.41 percent of budget. The development services fund yielded YTD revenues of $2,345,127 or 54.47 percent, and expenditures of $2,307,376 or 48.5 percent of the budgeted amount. The ambulance fund yielded YTD revenues (51.23 percent) and expenditures (47.06 percent) comparable to the prior year for the same period. The golf centers fund generated YTD revenues of $830,092, or 40.14 percent of budget, which was higher in comparison with the same period last year. Expenditures were $946,984 or Minutes - Regular Council Meeting March 22, 2005 - Page 12 45.03 percent of the total budget. Mr. Scott expressed concern that the golf courses were still losing money, despite the ongoing improvements. Mr. Noe replied it was important to look at the golf course trends over a multi-year period, because it would take several years before the improvements were completed. Mr. Noyola felt the decrease in golfers was partly due to the golf fee increases, and he asked staff to consider decreasing the cost. Finally, Mr. Martinez said the marina fund yielded YTD revenues of $655,609, or 42.48 percent of budget. He attributed the drop in revenues to the construction in the area which had hindered the collection. He said YTD expenditures are $628,625, or 31.24 percent of budget. Mr. Martinez reviewed a number of charts depicting the YTD revenue and expenditure trends for the enterprise funds in percentages and in millions of dollars. Mr. Martinez reported on the status of the internal service funds. He said revenues from the internal service fund were primarily derived from budgeted allocations from other funds that are charged monthly. As a whole, he said revenues are consistent with those for the same period last year as well as the percent of year completed to date. In addition, he said 40 percent of the funds's budgets have been expended with 50 percent of the fiscal year having expired. This compared favorably to 41.24 percent in the prior year for the same period. Mr. Martinez reviewed a number of charts depicting the YTD revenue and expenditure trends for the internal service funds in percentages and in millions of dollars. Mr. Martinez discussed the status of the special revenue funds, comprised of the following funds: hotel occupancy tax; Reinvestment Zone; arena/seawall; visitor facility; and Crime Control and Prevention District. With regard to the hotel occupancy tax fund, he said the YTD revenue of $3,243,059 represented 37.95 percent of the total budget, and expenditures were at 51.06 percent of budget. Regarding the Reinvestment Zone fund, Mr. Martinez said Reinvestment Zone No. 1 was in the process of being closed out. Reinvestment Zone No. 2 was established in FY 2002 for Packery Channel improvements, and reflected YTD collections of $824,319, a considerable increase over the prior year. With regard to the arena/seawall funds, Mr. Martinez said revenue from these two sales tax referendums are at slightly higher than 50 percent. Expenditures for the seawall improvements and arena facility are primarily associated with debt service. Regarding the visitors facility fund, Mr. Martinez stated insurance invoices for the arena and convention center have not been received; therefore, expenditures are only at 34.56 percent of budget. YTD revenues are at 43.38 percent of budget. Finally, regarding the Crime Control and Prevention District fund, Mr. Martinez stated that both YTD revenues and expenditures for this year were very close to the prior year for the same period as a percent of total budget, and on target with current year estimates. In addition, he reviewed a number of charts illustrating the YTD trends in revenues and expenditures for the special revenue funds in percentages and in millions of dollars. Minutes - Regular Council Meeting March 22, 2005 - Page 13 In conclusion, Mr. Martinez reported on the status of the debt service funds. He said debt payments were programmed, charged, and transferred on a fixed schedule according to the individual Debt Service issue requirements. Variances are due to mid -year refunding, and the timing for issuance of new debt/commercial paper for planned projects. Mayor Neal asked if there were any outstanding expenditures that were not covered in this report. Mr. Martinez replied it was possible, but more than likely they would not have a significant affect on the budget. He did list a number of exceptions, however, such as the firefighters contract and the timing of police retirements/drag up pay. Overall, Mr. Martinez said the trend was that departments were working hard to stay within budget. Mr. Noe added the departments were achieving this despite substantial increases in the cost of fuel. Mayor Neal congratulated the staff and the Council, particularly the Council Audit Committee, for the giant strides the city has made in financial management. Mr. Scott asked staff to provide a written explanation for the $1.2 million increase in public safety. He commented that the city economy seemed to be doing well. Mr. Kinnison commented the increase in the Police department budget may be partly due to the significant increases in fuel costs. He said it was positive that the city was able to manage the increased costs without exceeding the budget. Mayor Neal asked for a brief recess to present proclamations. ************* The Council returned from recess, and Mayor Neal called for petitions from the audience. Mr. Phil Rosenstein thanked the Council and city staff for passing the smoking ban ordinance. Mr. Mark Arnold, 4422 S. Alameda #43, spoke regarding his concerns about the litter generated by the storm water outfall near McGee Beach and the Holiday Inn - Emerald Beach. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 21, the first reading ordinance approving the FY 2005 Capital Budget. Assistant City Manager Oscar Martinez stated the Council had received an introduction to the proposed FY 2005 Capital Budget on March 8. A public hearing was also held on this date. He said staff was now bringing the first reading ordinance for the Council's consideration and approval. There was no public comment. City Secretary Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting March 22, 2005 - Page 14 21. FIRST READING ORDINANCE First Reading Ordinance approving the FY 2005 Capital Budget in the amount of $178,074,800. The foregoing ordinance was passed and approved with the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Cooper was absent. * * * * * * * * * * * * * Mayor Neal called for a recess to hold the Corpus Christi Community Improvement Corporation meeting. * * * * * * * * * * * * * The Council returned from recess, and Mayor Neal called for the City Manager's report. City Manager Noe reported the Council had previously requested that staff find ways to inform the public about the completion of street projects. In response, he said today staff held a brief recognition of the completion of the McArdle Road project. He said staff would continue to hold these recognitions to inform the public about the completion, and also inform the public that it would be easier to patronize businesses in these areas. He announced similar recognitions would be held on Monday at 9:00 a.m. for the completion of the Ayers/Gollihar project, and on Tuesday at 3:00 p.m. for the Up River Road project. Mr. Noe announced that this Thursday at 4:00 p.m., a planned tour of the Packery Channel Project was scheduled. Mr. Noe also announced a public remembrance ceremony in honor of Selena, to be held on March 31 at Cole Park, coordinated by the Park and Recreation Department. Finally, he said the city was sponsoring a Fair Housing seminar on April 7 at the Ortiz Center from 7:45 a.m. to 3:45 p.m. for $30 a person (including breakfast and lunch). Mr. Noe reported the following items were scheduled for next week's Council meeting: update on the 2005 Buc Days celebration; second reading of the Capital Budget; and a discussion on the streetcar project. Mayor Neal called for Council concerns and reports. Mr. Noyola expressed concern about a recent newspaper article regarding the possible reuse of the coliseum. He said the article quoted Mr. Ron Kitchens, President and CEO of the Regional Economic Development Corporation, as saying the coliseum was "obsolete". He had received several calls from citizens who disagreed with this statement, and he personally disagreed with this statement. He also disagreed with a statement attributed to Mr. Noe that called for another study on the possible reuses of the coliseum. Mr. Noyola felt there had been enough studies done on the coliseum. He asked Mr. Noe to provide information on the various proposals for potential coliseum reuse that had been presented to the city, besides the Bass Pro Shop proposal. Mr. Noyola also expressed concern that the Council was not notified about the article ahead of time. Mr. Scott also expressed concern that the Council was not notified about the article ahead of time. He believed, however, that staff and consultants should evaluate the proposals and make Minutes - Regular Council Meeting March 22, 2005 - Page 15 recommendations before bringing them to the Council. Mr. Noe replied that he did not say he wanted to hire a firm to do another study on the coliseum reuse; rather, he wished to hire a firm to consider the potential reuses, to serve as the city's agent to receive proposals, and to manage the project from start to finish. Mr. Scott also stated that though the coliseum may be functionally obsolete, it was nothing that couldn't be overcome with the proper investment incentives and resources. City Manager Noe agreed. Mr. Scott asked when staff would present an update on the coliseum. Mr. Noe replied staff had already compiled a list of firms that had spoken with the EDC about potential reuses, and had already prepared an RFP. He said staff would be ready to move forward on the issue within the next 30 days. Mr. Colmenero spoke in favor of an RFP for the coliseum to determine the best reuse. He also asked staff to address the litter problem in the marina related to storm water outfall. Mr. Noe replied staff had received a grant from the Texas General Land Office (GLO) that will focus on finding alternative solutions to the problem in the marina area. Mr. Noyola requested that the city seriously consider the coliseum reuse proposal presented by the Judson group because they were willing to make many of the necessary repairs to the building at their cost. Mr. Noe said the city was not dismissing their proposal, but would also be looking at other proposals, too, through the RFP process. There being no further business to come before the Council, Mayor Neal adjourned the Council meeting at 12:35 p.m. on March 22, 2005. * * * * * * * * * * * * *