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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". * * * * * * * * * * * * * Mayor Garrett called for public comment. There were no comments from the audience. * * * * * * * * * * * * * 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. * * * * * * * * * * * * * 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. * * * * * * * * * * * * *