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HomeMy WebLinkAboutMinutes City Council - 05/02/2006 - Retreat1 HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Corpus Christi City Courn i1 Retreat of May 2. 2006. which were approved by the City Council 7n May 16, 2006 WI TNESSETH MY HAND AND SEAL, on this the 16th day of May, 2006. Armando Chapa City Secretary sEAI. MINUTES CITY OF CORPUS CHRISTI. TEXAS Cit) Council Retreat May 2. 2006 - 9:00 a.m. PRESEN1 Mayor Henry Garrett Mayor Pro Fern John \larez* Council Members: Brent Chesney Melody Cooper* Jerre Garcia Rex Kinnison Bill Kell) Jesse No)ola Mark Scott City Staff: City Manager George K. Noe City Attorney Mary Kay Fischer City Secretary Armando Chapa Manor Garrett called the retreat to order in the Watergarden Room of the Museum of Science and History C'itySecretary Chapa checked the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. City Manager Noe stated that staff* would provide background information that might be useful to the Council during their goal setting session in the latter part of the meeting. The scheduled reports were as follows: an overview of the FY 2006-07 Forecast and Budget; a CIP budget update; updates on the Bond 2000 and Bond 2004 programs; a status report on the 2005 Strategic Issues set by the ('it' Council: and a presentation on the 2006 Hurricane Preparedness and NIMS briefing. *(Mr_ Mare arrived at 9'05 a.m. ) [,he first presentation was an overview of the FY 2006-07 Forecast and Budget presented by assistant City Manager Oscar Martinez. He said the presentation would focus on the General Fund and Enterprise Funds only. using a-fve-by-five" approach studying the following criteria: opening balance. total revenues. total expenditures, net gain/loss, and closing balance. Mr Martinez discussed the major issues affecting the Enterprise fund, comprised of the Water, Wastewater. Gas, Airport, Golf, and Marina funds. He also provided five-year projections based on historical trends for each fund. Of all the Enterprise funds. he said the Gas, Golf, and Marina funds presented the most challenges. Regarding the Gas tund. Mr. Martinez stated that over the last five years, Gas revenues had risen at an annual average 01 0.41 percent while expenditures had risen at an annual average of 3.37 percent. Ile said this trend underscored the need for a rate structure analysis because the city was not recovering the base cost for gas. Mr Kinnison spoke in favor of privatizing the city's Gas operations. City Manager Noe replied that staff could look into it but noted that it would he difficult to compete in the market Minutes - t ounctl Retreat May 2, 2006 - Page because industrial customers were able to dictate more favorable terms with their direct suppliers. Mr. Noe felt the issue was to encourage more and better gas usage by consumers. Mayor Garrett asked staff to revisit the idea of privatizing the city's Gas operations, and asked for a report in 60 days presenting the city, s options. Mr. Garcia felt that the city was not aggressively marketing gas nsage in the community. especially with new homebuilders. He felt more marketing could increase _las consumption and subsequent revenues. eliminating the need to privatize. Regarding the Airport fund, Mayor Garrett asked for a status report on international flights. Director of Aviation Davc Hamrick stated that the city had signed an agreement with a Mexican carrier to begin service to hlonterrev , Mexico by Thanksgiving 2005. Since that time, he said staff s communication with them had been difficult at best. The last time they spoke, he said the carrier planned to begin service in July. He assured the Council that the city was not expending any funds on the contract now. In the interim. Mr. Hamrick stated that he was speaking with two other Mexican airlines and a l .S airline with service to Mexico regarding international flights. Mr Scott asked what the primary challenge was to obtaining international flights out of the Uity s airport; he was concerned that the airport did not have the resources it needed to attract business. Mr. Hamrick replied that the major challenge was that the city could not provide quantifiable data defining the city's potential travel market to Monterrey. City Manager Noe stated that marketing efforts were also a key component. so the CVB and the Chambers of Commerce were important contributors to the success of the project. The Council expressed their commitment to obtaining international flight service out of the city's airport. Mr. Scott stated that he felt the airport staff was doing its utmost to obtain the services: if staff felt they needed more resources, he asked them to let the Council know. Regarding the (iolt fund, Mr. Martinez stated that over the past five years, revenues had incurred an annual average decrease of 0.26 percent while expenditures had experienced a 0.69 percent increase per year. I le said the financial viability of the Golf fund continued to be a concern. He said steps were taken in FY 2006 to reduce operating costs, but capital improvements to the two golf courses may cause future decrease in revenue generating capacity. Director of Parks and Recreation Sally Gavlik and Superintendent Ronnie Sepulveda answered the Council's questions regarding the rates for play . and staffs efforts to make the operation more efficient. City Manager Noe added that the city retained an outside consultant to analyze golf operation. Based on their recommendation. staff cut the number of permanent. benefitted employees to reduce costs. He said a total of seven full-time employees were transferred to other departments, saving $68,000. With regard to the Marina fund. Mr. Martinez stated that over the past five years, the fund had incurred an annual al. erage increase in revenues of 6.08 percent. During the same period, expenditures had increased by an annual average of 9.47 percent. He noted that the planned capital expansion of the slip rentai space would create a potential temporary decline in revenue generating capacity. He said corrective action was currently being considered to protect the Marina fund's financial condition_ Marina Superintendent Peter Davidson provided an update on the marina improvements. He said within the first six months, the new boat slips would generate an additional $100,000 to $125,000 in FY 2007. Staff anticipated that the new boat slips would be completed by November Minutes-+_ouncil Retreat May 2. 2006 - Page 3 2006. and the slips would be rented in early 2007. Mr Davidson stated that the Marina fund revenues were down this year for two primary reasons the Yacht Club's decision not to renew their lease ($30,000 loss) and the dramatic decrease n the number of shrimp boats. Council members expressed concern that the Yacht Club was denying the city access to a number of the boat slips they had returned to the city. City Manager Noe -itated that staff would address the access issues. Mayor Garrett asked for an update on liveaboards. Mr. Davidson stated that the Water Shore .dvisorCommittee had approved a proposed ordinance allowing and regulating liveaboards at the marina. He said staff would bring the proposed ordinance to the Council at an upcoming meeting for their consideration. He stated that the marina could sustain 58 liveaboards who would generate approximately $300.000 in revenues. Mr Martinez discussed the status of the General Fund. He said adjusted revenues had increased by an annual average of 3.5 percent while the adjusted expenditures had increased by an annual average of 3.74 percent. He noted that approximately 51 percent of the adjusted General Fund revenues were based on highly elastic revenue sources (ad valorem / sales taxes). Mr. Scott stated that every staff decision should he focused on increasing the city's revenues. Mr. Scott and Mr. Garcia also advocated reallocating the incentive monies for the bowlers convention to promote more tourism. In summary. Mr. Martinez stated that the overall condition of the General and Enterprise funds was good the second presentation was an update on the Capital Improvement Program (CIP) budget by Mr. Martinez. He coy Bred the FY 05-06 C1P funding sources and CIP funding uses. He discussed the current status of the Commercial Paper and Utility Revenue Bond programs. He reviewed reasons for the lack of sufficient Commercial Paper to complete all scheduled utility and hond projects. Ile discussed the recommended projects and action steps through the end of the current year. Finally, he provided a FY 2007 CIP update. */Ms. Cooper arrived at 1 I .00 a.m.) The third presentation was a Bond 2000 program update by City Engineer Angel Escobar. Mr. Escobar reviewed the complete hond project list for the public health and safety, park and recreation. museum. and street improvements categories. He reported the vast majority of the projects were completed, with a number of exceptions that he briefly reviewed. Mr. Escobar then responded to Council member questions. Mr. Escobar reported on the Bond 2004 schedule. He covered two project timelines, a neighborhood candidate street map. and the $95.000 bond proposition package approved by the 'voters. The first project timeline was for street improvements, saying that the objective was to complete or have the projects under contract by November 2008. The second project timeline for the Public Health & Safety Public Facilities. Parks and Recreation, and Bayfront projects. Staff then responded to questions by Council members. fhe third presentation was a series of updates on the status of the 2005 City Council strategic \1inutes - t_ ouncil Retreat May 2, 200 — Page 4 )ssues as follows: Downtown; Job growth'Attraction. Infrastructure: Neighborhoods; Budget/Finance Processes and Policies: and Intergovernmental Relations. Assistant City Manager Oscar Martinez made a brief presentation on the Downtown issue. Mr. Garcia expressed concern about the vacant huilding ordinance enforcement. Mr. Marez expressed concern that the Downtown Redevelopment .ommittee was moving too quickly . and he feared that they were going to burn out. Mr. Martinez replied that he would ask the committee and Director of Economic Development Irma Caballero to >low down the pace. Council members also asked questions about the D -Town and SEA -town Initiatives. the TRT negotiations timeline. and downtown property values. Based on the Council's ,:omments. Mr. Noe added "code enforcement" to the list of issues under the Downtown strategic ssue category. City Manager Noc made a brief presentation on the city's efforts regarding Job t irowtly Attraction. Ms. Cooper expressed concern about the lack of national media coverage regarding the city's Wi-Fi initiative achievements. Mr. Noe stated that staff planned to allocate funds to enhance the marketing efforts. but noted that the city might have to hire a consulting firm to truly enhance the city's \\'i-Fi press coverage. Mr. Kinnison pointed out that once the city entered into a partnership with an ISP. it could ask the ISP to fund the media campaign. kssistant City Manager Ron Massey made a brief presentation on the status of the Infrastructure issue. Council members asked questions about ways to fund further expansions, especially in existing neighborhoods. Assistant City Manager Margie Rose made a brief presentation on the status of the Neighborhoods issue. She provided reports on the Model Block Program and the Small Lot Program, and responded to Council questions. Assistant City Manager Oscar Martinez made a brief presentation on the status of the Budget/Finance Processes and Policies issue. Mr. Scott emphasized that the importance of sufficiently funding the Development Services department to ensure its success. Finally, (City Manager Noe made a brief presentation on the Intergovernmental Relations ssue. Mr. Scott noted that Texas A&M University — Corpus Christi was eventually going to outgrow its current location on the island. He suggested that the city offer assistance in finding alternative sites for facilities. He also stated that Mustang and Padre Island corridors were attracting condo and other developments. and he said it was time that the city increased its market efforts to encourage more tourism in these areas. Cite Manager Noe referred to a detailed list of the C'ouncil's strategic issues, and asked if they had any adjustments they would like to make for the balance of the term. Ms. Cooper stated that she would like to sec more focus on international issues, such as tourism, trade, oil and immigration, at the local level. Mr. Scott emphasized that the city needed to enhance its efforts to promote tourism City Manager Noe placed these concerns under the Job Growth/Attraction issue. Mr. Marez and Mr. Garcia asked for enhanced code enforcement efforts in the downtown area. City Manager Noe added this concern to the Downtown strategic issue. Minutes - Council Retreat May 2, 2006 — Page 5 Finally. Mr. Scott's concern regarding more dialogue with Texas A&M University — Corpus ('hristi regarding their needs for more space was placed under the Intergovernmental Relations issue. Acting Fire Chief Richard Hooks made a brief presentation on the 2006 Hurricane Preparedness and National Incident Management System (NIMS) initiatives. Council members asked questions regarding the city's coordination efforts with Nueces County, the Port of Corpus hristi. and other entities; and specifics regarding the local mandatory evacuation power granted by rhe State of hexas. City Secretary C'hapa discussed the Council meeting calendar for 2006-2007. The Council . oncurred that they wished to cancel the following meetings: June 20. 2006 (meetings would be held in June 6, _lune 1:3. and June 27); August 8 and 15, 2006; November 21 and 28, 2006; December 26, 2006: and March 13, 2007 [here being no further business to come before the Council. Mayor Garrett adjourned the Council retreat at 2:58 p.m on Mav 2. 2006. * * * * * * * * * * * * *