HomeMy WebLinkAboutMinutes City Council - 01/10/2006I 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 January 10, 2006, which were approved by
the City Council on January 17. 2006.
WITNESSETH MY HAND AND SEAL, on this the 17th day of January, 2006.
Armando Chapa
City Secretary
SEAL.
PRESENT-
Mayor
RESENTMayor Henry Garrett
Mayor Pro Tem Bill Kelly
Council Members:
Brent Chesney
Melody Cooper
Jerry Garcia
Rex Kinnison
John E. Marez
Jesse Noyola
Mark Scott
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Meeting
January 10, 2006 - 10:01 a.m.
City Staff:
City Manager George K. Noe
City Attorney Mary Kay Fischer
City Secretary Armando Chapa
Mayor Garrett called the meeting to order in the Council Chambers of City Hall.
The invocation was delivered by Pastor Derrick E. Reaves of St. John Baptist Church and
the Pledge of Allegiance to the United States flag was led by Council Member Cooper.
Mayor Garrett called for approval of the minutes of the regular Council meeting of
December 20. 2005. A motion was made, seconded, and passed to approve the minutes as
presented.
* * * * * * * * * * * * *
Mayor Garrett referred to Item 2 and the following board appointments were made:
Cable Communications Commission
Connie Gutierrez (Appointed)
Commission on Children and Youth
Caitlin Martin (Appointed)
* * * * * * * * * * * * *
Mayor Garrett called for consideration of the consent agenda (Items 3-13). Mr. Marez
requested that Item 3 be pulled for individual consideration. Mr. Noyola announced that he
would be abstaining from the vote and discussion on Item 13. There were no comments from the
public.
A motion was made, seconded, and passed to approve Items 3 through 13, constituting
the consent agenda, except for Item 3, which was pulled for individual consideration. City
Secretary Chapa polled the Council for their votes as follows:
Minutes - Regular Council Meeting
January 10, 2006 - Page 2
MOTION NO. 2006-002
Motion authorizing the City Manager or his designee to execute a construction contract
with Cravens Partners Ltd.. of Houston. Texas in the amount of $314,632 for the
Concrete Lined Channel Rehabilitation - Flynn Shea Parkway Ditch.
The foregoing motion was passed and approved with the following vote: Garrett,
Chesney, Cooper. Garcia, Kelly. Kinnison, Marez. Noyola, and Scott, voting "Aye".
MOTION NO. 2006-003
Motion authorizing the City Manager or his designee to execute Amendment No. 6 for
Construction Management Services in the amount of $918,000 with Anderson Group
Construction Management. Inc., of Corpus Christi, Texas for a revised, not to exceed,
total fee of $2,666,840 for various Capital Improvement Projects associated with the
2006 Capital Budget.
The foregoing motion was passed and approved with the following vote: Garrett,
Chesney, Cooper, Garcia, Kelly, Kirmison, Marez, Noyola, and Scott, voting "Aye".
RESOLUTION NO. 026594
Resolution recognizing the public necessity of acquiring fee simple title to a vacant tract
of land containing 0.83 of an acre for the Northwest Library Expansion Project, Bond
2004, for expansion of the existing library facility and other municipal purposes; and
authorizing acquisition by means of negotiations or eminent domain proceedings by the
City of Corpus Christi or its agents in acquiring the tract of land.
The foregoing resolution was passed and approved with the following vote: Garrett,
Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola. and Scott, voting "Aye".
ORDINANCE NO. 026595
Ordinance authorizing the City Manager or his designee to renew a five-year Parking
Space Lease Agreement with 101 Shoreline, Ltd., for 150 parking spaces located at 221
South Water Street. beginning January 22. 2006. and approving monthly lease amounts
of $3,308.59 for the first year, $3,440.93 per month for the second year, $3,578.56 per
month for the third year, $3,721.70 per month for the fourth year, and $3,870.56 per
month for the fifth year.
An emergency was declared. and the foregoing ordinance was passed and approved with
the following vote: Garrett. Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola,
and Scott. voting "Aye"
Minutes — Regular Council Meeting
January 10. 2006 — Page 3
MOTION NO. 2006-004
Motion authorizing the City Manager or his designee to extend Oracle Real Application
Clusters software update and product support from Mythics, Inc., of Virginia Beach,
Virginia in the amount of $58,755.84 for the twelve month period beginning January 28,
2006. Mythics, Inc. is an approved Texas Department of Information Resources vendor.
fhe foregoing motion was passed and approved with the following vote: Garrett,
Chesney. Cooper, Garcia. Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye".
9.a. RESOLUTION NO. 026596
Resolution designating the City Secretary or his designee as the Public Information
Coordinator for the Mayor and City Council.
The foregoing resolution was passed and approved with the following vote: Garrett,
Chesney. Cooper. Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye".
9.b. RESOLUTION NO. 026597
Resolution directing each Board, Committee. and Commission member to comply with
the training requirement of the Texas Public Information Act by designating the City
Secretary as the Public Information Coordinator.
The foregoing resolution was passed and approved with the following vote: Garrett,
Chesney, Cooper, Garcia, Kelly, Kinnison, Marez. Noyola, and Scott, voting "Aye".
10. ORDINANCE NO. 026598
Ordinance abandoning and vacating a 2,814.67 -square foot portion of a 10 -foot wide
utility easement out of Lots 2 & 3, Block 1, Shannon Middle School Tract, located south
of and adjacent to South Padre Island Drive (SPID), and east of the Airline Road-SPID
intersection; requiring the owner to comply with the specified conditions.
An emergency was declared, and the foregoing ordinance was passed and approved with
the following vote: Garrett. Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola,
and Scott, voting "Aye".
Minutes - Regular Council Meeting
January 10. 2006 -- Page 4
11 ORDINANCE NO. 026599
Ordinance abandoning and vacating a 3,002.90 -square foot portion of a 10 -foot wide
utility easement out of Lot 4, Block 1. Shannon Middle School Tract, located south of
and adjacent to South Padre Island Drive (SPID), and east of the Airline Road-SPID
intersection: requiring the owner to comply with the specified conditions.
An emergency was declared. and the foregoing ordinance was passed and approved with
the following vote: Garrett, Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola,
and Scott. voting "Aye".
12. ORDINANCE NO. 026600
Regarding delinquent personal property tax penalty. (First Reading 12/20/05)
The foregoing ordinance was passed and approved on its second reading with the
following vote: Garrett, Chesney. Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and
Scott, voting "Aye"
13. ORDINANCE NO. 026601
Amending the Zoning Ordinance by adding Section 26-9 to allow for development of
single family dwellings on non -conforming lots of record. (First Reading 12/20/05)
The foregoing ordinance was passed and approved on its second reading with the
following vote: Garrett, Chesney, Cooper. Garcia. Kelly, Kinnison, Marez, and Scott,
voting "Aye":: Noyola abstained.
Mayor Garrett opened discussion on Item 3 regarding the North Beach Improvements
Project. In response to Mr. Marez's question, City Engineer Angel Escobar replied the city
issued a Request for Qualifications (RFQ) last year and the selection committee deemed that Mr.
Wright and his team had the necessary experience to complete the project. Mr. Marez stated he
had been meeting with all the Corpus Christi Beach stakeholder groups, and he appreciated the
fact that city staff had also attended almost every meeting. He thanked staff for their efforts. He
said he was excited about the project, and was looking forward to the implementation of the third
phase of the project. City Secretary Chapa polled the Council for their votes as follows:
MOTION NO. 2006-001
Motion authorizing the City Manager or his designee to execute Amendment No. 1 to the
Contract for Professional Services with John Wright, Architect, of Corpus Christi, Texas
in the amount of $53313 for a total re -stated fee of $59,813 for the North Beach Area
Improvements. (BOND ISSUE 2004)
The foregoing motion was passed and approved with the following vote: Garrett,
Chesney, Cooper, Garcia. Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye".
Minutes - Regular Council Meeting
January 10. 2006 - Page 5
* * * * * * * * * * * * *
Mayor Garrett referred to Item 14.a., and a motion was made, seconded, and passed to
open the public hearing on the following variance request:
14.a. Public hearing on request for a variance to operate an establishment with on -premise
consumption of alcoholic beverages at an establishment known as Always Bat's located
at 4650 Kostoryz Road.
Assistant Director of Development Services Michael Gunning reported that Scott
Entertainment, Inc. was requesting a variance to allow the on -premises consumption of alcoholic
beverages at Always Bats. The establishment was located within 300 feet of a daycare center.
In 2003, State law allowed a city to prohibit any person from maintaining a business for the
dispensing and sale for on -premise consumption of alcoholic beverages within 300 feet of a
church, school, or daycare center. unless the City Council approved a variance to the distance
requirement. Per city ordinance, Mr. Gunning said the property owners in the area were mailed a
public hearing notice regarding the variance request, and no letters of opposition were received.
He said the Always Bat's facility and the daycare facility had been in co -existence since 1981
with no problems: thus. staff recommended approval of the variance.
Mayor Garrett called for public comment. Mr. Chris McJunkin, attorney representing the
applicant, asked the Council to approve the variance request.
Mr. Chesney made a motion to close the public hearing, seconded by Mr. Scott, and
passed. City Secretary Chapa polled the Council for their votes as follows:
14.b. RESOLUTION NO. 026602
Resolution granting a variance, under Section 4-5(f) of the Code of Ordinances, to Scott
Entertainment, Inc.. to operate an on -premise alcoholic beverage establishment located at
4650 Kostoryz Road.
The foregoing resolution was passed and approved with the following vote: Garrett,
Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye".
*************
Mayor Garrett referred to Item 15. and a motion was made, seconded, and passed to open
the public hearing on the following zoning case:
Case No. 1105-08, Airgas -Southwest, Inc.: A change of zoning from an "I-2" Light
Industrial District to an "I-3" Heavy Industrial District. The property is 0.009 acre out of
3.625 acres of Blue Chip Industrial Tracts, Block 1, Lot 3, located along South
Navigation Boulevard and 425 feet south of State Highway 44/Agnes Street.
City Secretary Chapa said the Planning Commission and staff recommended the denial of
an "I-3" Heavy Industrial District and in lieu thereof, approval for an "I-2" District with a
Minutes - Regular Council Meeting
January 10, 2006 - Page 6
Special Permit for two (2) above ground fuel tanks with a gallon limitation of one (1) 1,200
gallon tank and one (1) 4,000 gallon tank, subject to approval from the Zoning Board of
Adjustment and Fire Marshall.
No one spoke in opposition to the zoning change. Ms. Cooper made a motion to close
the public hearing. seconded by Mr. Garcia, and passed. City Secretary Chapa polled the
Council for their votes as follows:
lc. ORDINANCE NO. 026603
Amending the Zoning Ordinance. upon application by the Airgas -Southwest, Inc., by
changing the zoning map in reference to 0.009 acre out of 3.625 acres of Blue Chip
Industrial Tracts, Block 1. Lot 3 (currently zoned "I-2" Light Industrial District) by
granting a Special Permit for one (1) 1,200 gallon above ground fuel tank and one (1)
4,000 gallon above ground fuel tank. subject to two (2) conditions and a site plan;
amending the Comprehensive Plan to account for any deviations from the existing
Comprehensive Plan.
An emergency was declared, and the foregoing ordinance was passed and approved with
the following vote: Garrett. Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola,
and Scott. voting "Aye".
Mayor Garrett referred to Item 16. and a motion was made. seconded, and passed to open
the public hearing on the following zoning case:
Case No. 1105-09, Emilio Cano: A change in zoning from a "F -R" Farm -Rural District to
a "R -1B" One -family Dwelling District. The property is 18.24 acres out of Lot 1, Section
25. Flour Bluff and Encinal Farm and Garden Tracts, located along Rodd Field Road at
Airline Road and south of County Road 26 (future Lipes Boulevard).
City Secretary Chapa said the Planning Commission and staff recommended approval of
a -R-1B" One -family Dwelling District.
No one spoke in opposition to the zoning change. Mr. Chesney made a motion to close
the public hearing, seconded by Mr. Scott, and passed. City Secretary Chapa polled the Council
for their votes as follows:
Minutes — Regular Council Meeting
January 10. 2006 — Page 7
16. ORDINANCE NO. 026604
Amending the Zoning Ordinance, upon application by Emilio Cano by changing the
zoning map in reference to 18.24 acres out of Flour Bluff and Encinal Farm and Garden
Tracts, Section 25. Lot 1, from "F -R" Farm Rural District to "R -1B" One -family
Dwelling District; amending the Comprehensive Plan to account for any deviations from
the existing Comprehensive Plan.
An emergency was declared, and the foregoing ordinance was passed and approved with
the following vote: Garrett. Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola,
and Scott. voting "Aye".
*************
Mayor Garrett referred to the presentations on the day's agenda. The first presentation
was Item 17, and update on the Wireless Fidelity Broadband Network (WiFi) and Automated
Meter Reading (AMR) projects. Director of Municipal Information Systems (MIS) Ogilvie
Gericke stated that in addition to the project status reports, staff would be discussing the business
and management plans for these projects. He introduced Mr. Leonard Scott, MIS business unit
director, to provide an update on the AMR project.
Mr. Scott reported the city had completed the AMR pilot project and was now embarking
upon a citywide build -out that would take place over the next five years. He said the city was
currently reading 4,000 meters twice daily in the pilot areas. Moreover, staff had selected the
next area for the Year 1 build -out. strategically selecting an area adjacent to a pilot area with
existing equipment to reduce costs. He said the city would engage in a public awareness
campaign to notify the citizens in the build -out areas. He noted that the gas meter replacements
would involve the re -lighting of pilot lights by city personnel, and affected residences would be
advised with doorhanger notices. Mr. Scott stated the city had ordered the new meters on
January 9. and was receiving and storing them now. The installation of the new meters would
begin on January 23. Finally, he displayed a ma outlining the implementation areas.
Regarding the WiFi project, Mr. Scott reported the design of the network had been
completed. He said staff has selected locations to strategically place the WiFi devices
throughout the city, pending engineering approval from AEP. The city had ordered and was
receiving 1.300 WiFi devices for installation within the next eight months. Installation would
begin on January 23 and was scheduled for completion in late August. He pointed out that the
WiFi network provided the support and communication link needed for the AMR project.
Finally, Mr. Scott displayed a map depicting the four implementation zones in the city.
Mr, Brian Anderson with Next Step Consulting provided a brief overview of the WiFi
business plan. He said the principal goal for WiFi was to provide connectivity for AMR, public
safety, and other government applications, recognizing that there was significant excess
bandwidth capacity. Consequently. the City was looking at a plan to establish a business that
provided wholesale network services to existing ISPs (Internet Service Providers) so they could
provide Internet and network access to consumers. To this end, a non-profit corporation would
he created to provide the wholesale services, particularly to dial-up network providers looking
Minutes - Regular Council Meeting
January 10, 2006 - Page 8
for new ways to re-establish their operations. Mr. Anderson said the plan was to accept $5.00
per month per subscriber per household, noting that the fee would in addition to what the ISPs
w°ere currently charging. In addition. Mr. Anderson reported another potential revenue source
was from advertising.
Mr Garcia asked for an estimate of potential advertising revenues. Mr. Anderson replied
the City could receive $0.30 to $1.20 per click of an ad, tapped through an advertising program
offered by Google. Staff used the more conservative estimate of $0.30 in their projections,
which they based on reliable statistics. Mr. Anderson reported that staff planned to meet with the
ISPs soon to discuss the projections in Years 1 and 2. Mr. Garcia asked Mr. Anderson to update
the Council on the projections as soon as they were finalized.
Ms. Cooper asked staff to describe the function of the proposed non-profit corporation.
Mr. Jimmy Bray, attorney-at-law, stated the basic proposal was to govern the network through a
local government corporation. a non-profit corporation authorized by statute to assist a local
government to accomplish any governmental purpose. The city, for example, used a similar
corporation to assist with the Packery Channel project. The corporation provided several
advantages by creating an entity with a sole focus on the project, and also by insulating the city
from liabilities. The corporation would be created by a City Council resolution approving the
Articles of Incorporation and by-laws. The network would serve to improve the delivery of city
services at reduced cost and promoting economic prosperity and jobs. The proposed name of the
corporation was the Corpus Christi Electronic Communications Development Corporation. The
resolution recognized that the participation of partners, such as business groups, community
groups. other governmental entities, and educational institutions, was beneficial to the project's
viability.
Mr Bray further explained that the Articles of Incorporation and the bylaws would
establish the structures and powers of the corporation. The corporation would consist of a five -
member board of directors appointed by the City Council for four-year staggered terms. The
Board would be directed to form an advisory committee or committees of stakeholder groups to
obtain input on the project. Finally, the City Manager would serve as the Chief Executive
Officer. the City Secretary as secretary. and the Finance Director as treasurer. After the
corporation was formed, the corporation and the City would enter into a contract detailing the
scope of their duties and governance over the network.
In conclusion, Mr. Gericke reported the next steps in the process were to seek Council
approval during January or February 2006 for the following actions: the creation of a
corporation, its articles. and bylaws; a business plan; and a contract with the corporation.
Mr. Kinnison asked if the business plan would have detailed operational five-year
projections. Mr. Gericke replied affirmatively. Mr. Kinnison asked what the objective of the
cash flow was in the business plan. Mr. Gericke replied the objectives were to repay capital on
the WiFi project, cover operational expenses, and fund future enhancements. He said the City
was also expending funds for consulting services.
Mr. Kinnison asked for an example of the proposed $5 per subscriber fee. Mr. Anderson
replied there were several dial-up ISP companies, such as Awesome Net, in the city that could
Minutes - Regular Council Meeting
January 10. 2006 - Page 9
partner with the city and offer an upgrade to their existing subscribers for high-speed Internet
access. He said studies have shown that a large number of the city's residents were still using
dial-up Internet access. Thus, it was an excellent opportunity for local businesses, and a way for
the city to lower its marketing costs since the dial -ups would market to their existing customers.
Mr. Kinnison noted that Awesome Net was not on the list of WiFi partners that staff had
provided in their presentation materials. Mr. Gericke replied that Awesome Net was not on the
list now, hut staff would be meeting with them later in the week because they had expressed
tremendous interest in the project. City Manager Noe added that the list of partners evolved
daily.
Mr Kinnison asked how close the city was to signing agreements with the major partners
on the list. like SBC and Sprint. Mr. Bray replied the plan was to establish the corporation first,
and then allow the corporation to enter into agreements with the different partners. One
suggestion was to have the corporation develop uniform agreements for each class of partners to
ensure equal treatment. Mr. Gericke added staff had already received written proposals from
Sprint and Intel, and they were simply waiting for the corporation's establishment to develop
agreements.
In response to Mr. Kinnison's question, Mr. Anderson mentioned another possible
revenue source, the E-commerce portal. The portal would allow local businesses to establish an
online storefront for a small fee of approximately $250 a month. Businesses could then use the
portal to market their products. and Network users would be able to buy products and services
online.
Ms. Cooper complimented staff on their progress. She was concerned, however, that it
seemed that a large part of the community and the country was still unaware about the honors
bestowed upon the city for the WiFi project. She asked Mr. Noe about staff's public relations
efforts. City Manager Noe replied staffs top priority now was to get the system operational
rather than on public relations. He acknowledged that the city was missing economic
development opportunities by not marketing more. but said a big marketing effort would require
substantial resources. He said it had been difficult to receive the recognition that Philadelphia
had been receiving, even though their WiFi network did not have a single subscriber as of yet.
He also said local newspaper coverage had been modest at best.
Mr. Scott asked how companies like SBC and Time Warner that were currently providing
high-speed Internet access felt about the WiFi project. He suspected that they might view the
technology as a way for government to provide competitive opportunities to their competitors.
City Manager Noe replied the City had been open about providing access to all entities on the
same terms, regardless of the size of their business. Therefore, the City has not been criticized in
the manner suggested by Mr. Scott. In addition, he said each of the companies had interesting
ideas on how to combine the synergy of their particular services with WiFi to produce new
services. He said the City could only benefit from the innovation and creativity produced in this
environment.
In response to Mr. Scott's question, City Manager Noe replied that if an ISP wished to
use the network and was not on the current partners list, they would still be able to come to the
Minutes — Regular Council Meeting
January 10. 2006 — Page 10
table after the start of services. rhe city was promoting an open, level playing field for all
qualified businesses.
* * * * * * * * * * * * *
fhe last presentation was Item 18 on the results of the First Quarter FY 2005-06
Budget/Performance report, given by Assistant Budget Director Eddie Houlihan. City Manager
Noe noted that the report did not include the costs related to Hurricanes Katrina and Rita. Staff
had segregated the costs because the City expected to receive reimbursement from FEMA.
Mr Houlihan reported that with 25 percent of the fiscal year completed, combined
revenues and expenditures were 22.79 percent and 17.05 percent respectively. Though early in
the year, the City's overall financial outlook was consistent with the same time last year.
Mr Houlihan provided an update on the General Fund, comprised of the following funds:
ad valorem property taxes: industrial district, sales taxes, franchise fees, solid waste services,
municipal court, museum recreation services, and public safety. He said the year-to-date (YTD)
ad valorem property tax collections were slightly higher than budgeted. At this time, he said
staff had no reason to believe that the City would not meet the budget in this area. Regarding
industrial district payments, he said staff was in the process of ascertaining that all properties in
the district had been properly billed. At the end of December, he said these revenues were
approximately $100.000 short of budget. YTD sales tax collections were consistent with
projections for this year and are ahead of the same period last year. Projections reflect a 4
percent growth rate compared with last year's collection trend. Franchise fee YTD collections
were more than the YTD budget mostly due to increased electric franchise fees. Solid Waste
Services revenues were less than the YTD budget mainly due to the residential revenue account.
Mr Houlihan reported on several other funds in the General Fund. He said Municipal
Court YTD collections were consistent with the YTD budget. He noted, however, that Failure to
Appear revenues was down due to a smaller backlog of warrants. Museum revenues were higher
than the YTD budget, a welcome development considering that the revenues had declined the
last two years. YTD recreation services revenue was slightly lower than the YTD budget,
mainly due to declining Latchkey program revenue. Public safety YTD revenues were slightly
more than budgeted, primarily because of the 911 Wireline and Wireless Service revenue.
In summary. Mr. Houlihan stated that with 25 percent of the fiscal year completed, 20.89
percent of the General Fund budget had been expended. There were no significant unfavorable
variances among City departments and individual operating divisions. Mr. Houlihan displayed
charts comparing the General Fund YTD 2005-06 revenues and expenditures in each category
with actual figures from FY 2003-04 and FY 2004-05.
Mr Houlihan then provided an update on the Enterprise Fund, comprised of the
tollowing funds: water. gas. wastewater. airport, development services, ambulance, golf centers,
and marina. Water YTD revenues were $22,797,553, representing 27.88 percent of budgeted
revenues. Revenues were greater than the same period in the prior year, primarily because of
increased consumption. Overall, YTD expenditures were $13,148,514, or 16.12 percent of
budge, which was slightly less than the same period last year.
Minutes — Regular Council Meeting
January 10, 2006 — Page 11
Gas YTD revenues were $8.164,435. representing 19.64 percent of budgeted revenue,
which was higher than the revenue collected for the same period in the prior. The increase was
mostly attributable to higher natural gas prices. YTD expenditures were $6,095,481, or 14.83
percent of budget.
Wastewater YTD revenues were $9,813,071. representing 25.09 percent of the budget,
which was higher than collections for the same period last year. YTD expenditures were
$7,187.822. comprising 19.58 percent of the budget.
Airport fund YTD revenues were $2.009,283 or 23.82 percent of collections for this
quarter. YTD expenditures were $1,803,634, or 21.16 percent of budget. Development Services
Fund YTD revenue was $1.2 million, or 27.59 percent and expenditures area$1.1 million or
22.31 percent of budget.
Mr. Houlihan noted that in FY 2006, ambulance fund operations were moved to the
General Fund. Any remaining funds will be transferred to the General Fund at the completion of
the annual audit.
The Golf Centers fund YTD revenue was $477,061, or 24.51 percent of budget, which
was higher in comparison with the same period last year. Expenditures were $338,465 or 19.33
percent of total budget. The Marina fund YTD revenue was $319,308, or 21.44 percent of
budget. YTD expenditures are $357,947, or 24.05 percent of budget. Low revenues were mostly
attributable to an unexpected delay in the completion of the new docks. In summary, Mr.
Houlihan displayed two charts comparing YTD 2005-06 revenues and expenditures in each of
the Enterprise Funds with actual figures from FY 2003-04 and FY 2004-05.
Mr. Houlihan discussed the status of the Internal Service funds revenues, primarily
derived from budgeted allocations from other funds that are charged monthly. As a whole,
revenues were consistent with those for the same period last year as well as the percent of year
completed to date. He said 18.13 percent of the combined fund budgets have been expended
with 25 percent of the fiscal year having expired. This was slightly higher than the 17.46 percent
expended in the prior year. In summary, he displayed two charts comparing YTD Internal
Service Fund revenues and expenditures with actual figures from FY 2003-04 and FY 2004-05.
Mr. Houlihan then provided an update on the Special Revenue funds, comprised of the
Hotel Occupancy Tax fund, the Reinvestment Zone fund, the arena/seawall funds, the visitors
facility fund, and the Crime Control and Prevention District fund. YTD revenue for the Hotel
Occupancy Tax fund was $2,088,354. representing 23.34 percent of the total budget.
Expenditures constituted 23.54 percent of budget. The sales tax revenue from the two
referendums related to the arena/seawall funds was 25.19 percent, and expenditures were
primarily associated with debt service. Regarding the visitors facility fund, Mr. Houlihan
reported that revenues were on target with budgeted amounts. He noted, however, that insurance
premiums for the arena and convention center had not been finalized; therefore, expenditures
were only at 17.31 percent of budget. Both YTD revenues and expenditures for the Crime
Control and Prevention District were very near to prior year for the same period as a percent of
the budget, and on target with current year estimates. In summary, Mr. Houlihan displayed two
Minutes — Regular Council Meeting
January 10, 2006 — Page 12
charts comparing YTD Special Revenue Fund revenues and expenditures with actual figures
from FY 2003-04 and FY 2004-05.
Finally. Mr. Houlihan discussed the Debt Service Funds. He said the debt payments were
programmed, charged, and transferred on a fixed schedule according to the individual Debt
Service issue requirements. Variances were due to mid -year refunding, and the timing for
issuance of new debt/commercial paper for planned projects.
Mayor Garrett asked if Municipal Court had a plan to reverse the decrease in revenues
from Failure to Appear warrants. Mr. Houlihan replied budget staff had met with Municipal
Court staff to discuss the matter. Mr. Noe added that staff would be issuing an RFP for a
company to handle the Failure to Appear warrants
* * * * * * * * * * * * *
Mayor Garrett opened discussion on Item 19 regarding a resolution proposing a number
of changes to the City's financial policies. City Manager Noe stated that one of the goals the
Council set during their May retreat was to improve the quality of the city's financial planning.
During a tinancial policies workshop held on November 1, 2005, the Council discussed various
issues related to the City s future financial performance. The Council then asked that the
tinancial policies be redrafted to include a number of changes and new initiatives that were
discussed.
City Manager Noe covered the major changes included in today's draft resolution. First,
the fund balance policy was set at 10 percent. He said any amounts in excess of that could be
used for one-time expenditures on capital and equipment that reduce the need for future debt.
Second. the property tax for operations was set at the "effective rate", with an exemption for the
Packery Channel TIF. Third, the policies set a priority on public safety (Police, Fire, and EMS)
and infrastructure maintenance with an admonition that service levels should not be decreased in
other areas. There were no comments from the public. City Secretary Chapa polled the Council
for their votes as follows:
19. RESOLUTION NO. 026605
Resolution reaffirming financial policies adopted by Resolution No. 023319, providing
policies for maintenance of the General Fund Balance at an adequate level, and providing
policy direction on preparation of the FY 2006-2007 budget.
The foregoing resolution was passed and approved with the following vote: Garrett,
Chesney, Cooper, Garcia, Kelly, Kinnison, Marez, Noyola. and Scott, voting "Aye".
Mayor Garrett opened discussion on Item 20 regarding a first reading ordinance to
modify the local ordinance related to local auto wrecker services. City Manager Noe explained
that State law governing the fees for auto wrecker service were modified on September 1, 2005.
Consequently. the local wrecker companies requested a review of the local ordinance as well as a
rate study of other cities fees. The rate study was conducted by the Police Department, and it
Minutes — Regular Council Meeting
January 10, 2006 -- Page 13
concluded that the fee increases requested by the wrecker companies were reasonable compared
with other cities. Subsequently, he said staff was recommending a number of increases in
towing charges that would be passed on to the individual customer in response to the changes in
State law and in fuel costs. There were no comments from the public. City Secretary Chapa
polled the Council for their votes as follows:
20. FIRST READING ORDINANCE
Amending the Corpus Christi Code of Ordinances, Chapter 57, Vehicles for Hire, Section
57-254, Maximum Auto Wrecker Service and Storage fees, providing for fee increases,
changing the term '`preservation fee" to `'impoundment fee" and using "longer that 25
feet" as a trigger to charge large vehicle daily storage fees; all changes of which conform
to controlling state law; and providing for penalties.
The foregoing ordinance was passed and approved on its first reading with the following
vote: Garrett, Chesney. Cooper. Garcia, Kelly, Kinnison, Marez, Noyola, and Scott,
voting "Aye".
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Mayor Garrett called for public comment. There were no comments from the audience.
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Mayor Garrett called for Council reports. Mr. Chesney asked Mayor Garrett when the
beach closure issue would come before the Council again. Mayor Garrett replied the beach
ordinance issue would be brought before the Council again when a development plan had been
formulated. He did not foresee the issue coming before the Council in the month of January.
Mr. Chesney thanked the Mayor for the clarification, saying there appeared to be some confusion
in the community about the beach closure issue.
Mr. Chesney commented that the City Manager had stated in the newspaper that the City
would conduct a national search to find a new police chief. Mr. Chesney did not feel it was
necessary to engage in a national search because of the quality of the local candidates. He said
he would have a hard time supporting any action authorizing an expenditure for this purpose.
Mayor Garrett, Ms. Cooper. Mr. Garcia, and Mr. Noyola supported Mr. Chesney's position.
Mr. Noyola asked for information on the process used to conduct a national search. Mr.
Noe replied staff had already received bids from a number of firms, and would be reviewing
them tomorrow. Each firm conducted the search differently, but the goal was to find the best
police chief for the City. He felt it was beneficial to compare the local candidates with outside
competition, and he felt they would compare favorably. Mr. Noyola asked if it was possible for
the city to conduct the national search in-house rather than hire an outside consultant. Mr. Noe
answered the city could advertise nationally, but the advantage of hiring a firm was their ability
to thoroughly evaluate and screen the candidates.
Minutes - Regular Council Meeting
January 10. 2006 - Page 14
Mr. Noyola spoke in support of promoting from within the Police Department to fill the
Police Chief vacancy because they were already familiar with Local issues like the Crime Control
and Prevention District. Mr. Noe pointed out that other communities have much more extensive
community policing programs than the City of Corpus Christi. A local candidate would not be
familiar with these programs because they were trained within the current system.
Mr. Garcia asked for a status report on the signage issue. City Manager Noe replied the
plan was to put together a stakeholders group comprised of representatives from business,
neighborhoods, and other sectors. Assistant Director of Development Services Michael Gunning
added staff was still planning to hold a meeting at the end of January, followed by another in
February. The meetings would be held at the Development Services conference room. Mr.
Gunning said he would submit a briefing report to the City Manager with the meeting schedule
and the names of the membership.
Mr. Garcia agreed with Mr. Chesney's statement that there appeared to some confusion
about the beach ordinance issue. as evidenced by the comments made at the last town hall
meeting. He emphasized the importance of clarifying the issues before bringing the item before
the Council.
Mr. Kinnison encouraged Mr. Noe to conduct a national search for a new police chief.
He felt the City should get the best police chief possible, and to that end, he encouraged him to
look at all the applicants. He hoped the Council would give him direction to continue with his
current process. City Manager Noe replied that he understood the dynamics of internal
candidates versus external candidates. In the end. his job was to provide the Council with his
best recommendation, knowing that the Council had the authority to approve or disapprove his
choice. Mr. Kelly, Mr. Marez, and Mr Scott also spoke in support of conducting a national
search for a new Police Chief.
Mr. Chesney asked if the City Manager had to obtain approval from the Council to
allocate funds for a national search for Police Chief. City Manager Noe replied negatively,
saying the City Manager could approve any expenditure under $25,000 without Council
approval.
Mr. Kelly stated he was receiving calls from business people in the community frustrated
about the uncertainty surrounding the sign ordinance. He asked staff to resolve this issue as
quickly as possible.
Mr. Marez asked if the Bayfront Master Plan included the downtown area. Mr. Noe
replied negatively, saying the plan was limited to the bayfront parks. Mr. Marez asked if it
would be possible to include the downtown area in the plan. City Manager Noe replied the idea
was to have the Bayfront Master Plan support the downtown area, and noted that all the project
costs included the bayfront park area only. Assistant City Manager Ron Massey added the
Bayfront Plan was primarily comprised of the road realignment and the subsequent re -use of the
space. However. he pointed out that staff was cognizant that the Bayfront Master Plan
improvements needed to support the downtown area development.
Minutes - Regular Council Meeting
January 10, 2006 -- Page 15
Mr. Marez asked for an estimate on the previous costs for holding a joint election with
Nueces County in November, and how the costs would differ with the new, paperless process
recently introduced. City Secretary Chapa replied the City's costs for holding a joint election
with the County were usually $120,000 to $125.000; the cost was $100,000 if the City held its
own election. He was uncertain at this point how the County was going to factor in the rentals of
the new equipment and staff time for programming. He assumed. however, that it would be less
than what the City had paid before because the major election cost was the printing of ballots.
Mayor Garrett called for the City Manager's report. City Manager Noe reported the next
Neighborhood Improvement Program (NIP) Area #13 meeting would be held at 6:00 p.m.
tonight at Lamar Elementary School. He also announced that at 2:00 p.m. this afternoon, a
ceremony to honor ten retiring tire fighters would be held.
Finally. Mr. Noe announced that the Council would consider an amendment to the public
access channel rules and regulations at their next meeting.
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Mayor Garrett stated that individuals who had signed the public comment list left the
Chambers during his previous call for petitions from the audience. He noted that they had since
returned, and Mayor Garrett gave them an opportunity to make their comments.
Mr. Johnny French, 4417 Carlton. and Mr. Warren Fletcher, 3100 Santa, spoke against
the closure of any beaches to vehicular traffic.
There being no further business to come before the Council, Mayor Garrett adjourned the
Council meeting at 11:30 a.m. on January 10, 2006.
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