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
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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.
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