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HomeMy WebLinkAboutMinutes City Council - 04/04/1984MINUTES CITY OF CORPUS CHRISTI, TEXAS REGULAR COUNCIL MEETING APRIL 4, 1984 2:00 P.M. PRESENT: Mayor Luther Jones Mayor Pro Tem Betty N. Turner Council Members: David Berlanga, Sr. Welder Brown Leo Guerrero Dr. Charles W. Kennedy, Jr. Joe McComb Frank Mendez Mary Pat Slavik City Manager Edward A. Martin City Attorney J. Bruce Aycock City Secretary Bill G. Read -v,L>fi Mayor Luther Jones called the meeting to order in the Council Chamber of City Hall. The invocation was given by Dr. Loren White of Second Baptist Church, following which the Pledge of Allegiance to the Flag of the United States was led by Mayor Pro Tem Betty Turner. City Secretary Bill G. Read called the roll of required Charter Officers and verified that the necessary quorum was present to conduct a legally constituted meeting. Mayor Jones called for consideration of the Minutes of the Regular Council Meeting of March 21, 1984. The following corrections were made to the Minutes: Mayor Pro Tem Turner noted that she voted "no" on Ordinance No. 24, Council Member Joe McComb corrected the name listed on Page 16 in the fourth paragraph to Barbara May. A motion was made by Mayor Pro Tem Turner that the Minutes of the Regular Council Meeting of March 21, 1984 be approved as amended; seconded by Council Member Frank Mendez and passed unanimously. * * * * * * * * MICROFILMED cute s -egular Council Meeting April 4, 1984 Page 2 Mayor Jones announced a presentation which consisted of an invitation to Corpus Christi Beach Party and recognized Mr. Terry Dopson, Director of Park and Recreation Department. Mr. Dopson called on Linda Hodge of that department to issue the invitation to the Council. Mrs. Hodge appeared in a period costume and introduced her co-workers, all of whom were in beach attire from an earlier period. Mrs. Hodge and her associates then issued an invitation to the City Council to the Corpus Christi Beach Party which she described as a family fun festival at the north end of Corpus Christi Beach. She explained the various events that will occur and informed them of the dates which are Friday, April 13, through Sunday, April 15. She also urged that the Council officially open the event on Wednesday, April 11 following the City Council Workshop Meeting. She explained to the Council Members that vintage automobiles will pick them up at City Hall and transport them to Corpus Christi Beach to officially open the Corpus Christi Beach Party. Mayor Jones announced a presentation by Mr. Jim Faris and the Associated General Contractors. Mr. Faris stated that his attorney, Mr. Richard Hall, would speak on his behalf. Mr. Faris then presented each Council Member with a compilation of material pertaining to the bids received on the George Evans Street Improvement Project. Mr. Hall then addressed the Council on behalf of Mr. Faris and stated that he was present to ask the Council to reconsider the matter of awarding the bid on the George Evans Street Improvement Project. He stated that Maverick Construction Company had submitted a bid on this project which was legally the low bid, yet the Council during their regular Council Meeting of March 28, 1984 following some discussion among themselves and after a presentation by Mr. A. Ortiz, decided to award the bid for the project to Mr. Ortiz. He stated that he was present to suggest to the Council that the bid award was not in the best interest of the City and also to make them aware of some legal problems that might be presented the City through this action. Mr. Hall informed the Council that Mr. Ortiz had submitted a bid which included the paving portion of the work and asked the Council to refer to item 6 on page 11 of the exhibit presented to them. He noted that the price in figures for this work was $30 in writing and $30 in the figure per square yard for a total of $1,254. He stated that obviously, a mistake in multiplication had been made in that the amount at $30 per square yard for 418 square yards would be $12,540. Mr. Hall then referred to the instructions to the bidders in which it is stated that "in case of discrepancy between the price written in words and the price written in figures, the price written in words shall govern. The unit price shall govern over the amount." He noted that if you consider this instruction to bidders as a part of the contract, the City has made a lutes ,regular Council Meeting April 4, 1984 Page 3 contract to the bidder to the effect that if bidders take their time and effort to submit a bid, that those are the specifications that will apply in awarding the bid. Mr. Hall contended that Mr. Ortiz' bid was some $10,000 over the bid submitted by Maverick Construction Company. Mr. Hall continued and noted that there are other provisions that allow the City to reject any or all proposals and several reasons are listed for rejecting the bids such as: (a) proposal received after the time limit for receiving proposals as stated in the advertisement; (b) proposal containing any irregularities; and (c) unbalanced value of any items. He stated that during the Council discussion the preceding week, there was never any suggestion that any of those reasons were given for rejecting Maverick's bid at that time. He then referred to the item in the specifications on disqualification of bidders and none of those reasons were given for rejecting Maverick's bid, because the Council simply made the decision that Ortiz was the low bidder and he was not the low bidder according to these specifications. He pointed out the fact that the City Engineer examined the bid submitted by Mr. Ortiz and determined that the written prices prevail over figures and the extension and the unit prices prevail over the totals. He noted that by following those instructions, the Engineering Department determined that Mr. Ortiz was not the low bidder and recommended that Maverick be considered the low bidder. Mr. Hall stated that it is true that the City can award a bid to the second low bidder for certain reasons, but none of those reasons were used in this case. He pointed out that the law does not permit the City to negotiate with the bidder to make that bidder low by changing figures. Mr. Hall stated that he understood that Mr. Ortiz had informed the Council that this was a mistake made by his secretary. Mr. Hall then stated that he was concerned if the City is going to take into consideration mistakes made by bidders and allow the changing of prices. He questioned such a practice because it would eliminate the certainty for letting of contracts. Mr. Hall stated that he is present at this meeting as a friend of the City, pointing out legal problems that he could foresee. He referred to Article 23-62 which provides that a contract shall be let to the lowest responsible bidder and Maverick Construction Company was not rejected because he was not a responsible bidder. He stated that Mr. Ortiz was awarded the contract because he was the low bidder through a negotiating procedure. Mr. Hall referred to the State Law which indicates that if the contract is for public works, any contracts that are not made for public works to the low bidder may be challenged or enjoined by any taxpayer of the City. He stated that he felt that this was very strong language and the question is one of clearness for all contractors who bid. Mr. Hall then referred to page 14 of his exhibit and stated that that particular tabulation shows that the residents of the George Evans School Area, under the Ortiz bid, will be assessed about $9,000 more of the improvement cost than they would be under the Maverick bid. Utes ..egular Council Meeting April 4, 1984 Page 4 Mr. Hall pointed out that this is not a matter that sets a precedent because in May of 1982, bids were taken for the North Corpus Christi Beach Parking Lot, at which time, King Construction Company submitted a bid in which they had changed the numbers on the unit price and they changed the extension on the total price but they did not change the written figures, and even though they were the low bidder, the City Engineering Department rejected that bid because of the error and noted that price in words governs over price in figures. He pointed out that no one complained about it because this action was in compliance with the instruction to the bidders. Mr. Hall referred again to the George Evans Street Improvement Project and referred to page 9 of his exhibit. He pointed out that item 2 refers to flexible base caliche on which Mr. Ortiz had bid $5.50 per square yard and item 3 which was 11" Type D hot -mix on which Mr. Ortiz had bid $5.00 for a total of $10.50 per square yard and explained that those two elements must go into the item 6 under question of pavement repair and obviously since that total is $10.50, it seems irregular for Mr. Ortiz to state that he will provide the pavement repair for $3.00 per square yard. Mr. Hall concluded his presentation by asking the Council to reconsider and follow what he believed the City's own attorney would tell them to do to award this particular contract to Maverick Construction Company. Council Member Kennedy asked City Attorney Aycock for his opinion of Mr. Hall's presentation. Mr. Aycock stated that in his opinion, Mr. Hall gave a very good legal argument on behalf of his client, but there is still a question as to whether Mr. Ortiz made an honest mistake or not. Council Member Kennedy continued by inquiring if Mr. Hall is interpreting the City's specifications the way a prudent man would. Mr. Aycock stated that it is a judgment call for the Council to make and the Council has the right to waive any irregularity. He pointed out that there was another case in the past involving JCO Company. Council Member Kennedy continued by inquiring if unit price was written on that case, and Mr. Aycock replied in the affirmative. Council Member Kennedy stated that he agreed with Mr. Hall and he did not think that the Council should deviate from the City's specifications which clearly state that the written figure on a bid shall govern over a price in figures and the unit price shall govern over the total amount. He stated that he voted against awarding the contract to Mr. Ortiz last week and he will do so again this week. Council Member Guerrero pointed out that Mr. Hall had been quoting from State Law and the State Law continues to say that the Charter prevails over State Law. utes negular Council Meeting April 4, 1984 Page 5 Mr. Jim Anderson, Vice President of South Texas Construction Company, stated that his firm performs highway and utility work in this area but he is appearing today on behalf of the Associated General Contractors. He explained that AGC is a state-wide organization and the South Texas Chapter represents 400 general contractors and associate contractors. He stated that the purpose of their organization is to monitor the bidding procedure, and AGC believes that the City Council action in awarding this bid to Ortiz Construction Company is a flagrant violation of established bidding practices. He stated that they are of the opinion that this is a threat to the competitive bidding process. He pointed out that the City Staff prepared general specifications for these contracts and it is not typical just of the City of Corpus Christi contracts -- this is the kind of verbage recommended for such documents. He stated that their organization concurred that the only item that is pertinent is the bid written in words. He noted that a lot of government work is bid when the price is only written in words, and they are of the opinion that the City Staff made the correct recommendation that the bid be awarded to Maverick Construction Company. He noted that the City Council had rejected the recommendation of the City Staff and allowed the alteration of a bid by Mr. Ortiz and indicated that bid award would be made to his company. He stated that such a practice is of great concern to AGC in that it will invite unethical contractors to submit other erroneous bids. He emphasized the fact that AGC strongly believes in the competitive bidding procedure and they would like to urge that the Council rescind their action of the preceding week and award the bid on this project to Maverick Construction Company. He stated that neither Maverick Construction Company nor A. Ortiz Construction Company are members of AGC. Mr. Bill Ewing, President of the South Texas Chapter of AGC, stated that their membership consists of 31 general contractors and 371 subcontractors. He stated that they are very concerned that the specifications in the City Staff's recommendations are being ignored by the City Council, and once that procedure has been established by the City Council, the Staff is required to follow it. He expressed the opinion that if the City Council desires to change the established rules for bidding procedures for the City, it should be well publicized so that the bidders will be aware of it. He stated that they feel that the City Council is legally and morally bound to follow the City's rules. Mr. Ewing then inquired if it is correct that the City Charter will prevail over State Law in a case like this, and Mr. Aycock stated that that was correct. Mayor Jones explained that this is a home -rule City and as such, the City can do anything that is not precluded by State Law. Mayor Pro Tem Turner stated that she is very concerned about the action taken the preceding week because she is of the opinion that the competitive bidding procedure of the City is being threatened and if the contractors are not aware of the method utilized by the City in awarding contracts, they may be hesitant to bid on City projects. ates negular Council Meeting April 4, 1984 Page 6 Mr. Spec Bailey, President of King Construction Company and a Member of AGC, stated that they have been performing work for the City for many years and have several construction jobs underway at this time. He informed the Council that they had made a similar type of mistake on the bid for Corpus Christi Beach; they were low bidder by $2,000; his secretary had made an error by not changing the written words when they changed their bid on one item; and they received a letter from the City Staff of the Engineering Department informing them of their mistake. He stated that he could have approached the City Council and stated that he made an error but he did not do this -- he accepted the fact that an error had been made and he was not eligible for the bid award. He pointed out that it is very confusing for a contractor to spend a great deal of money bidding on a project when they are not sure on what basis the contract will be awarded. He expressed the opinion that if guidelines are not established and followed, the contractors are going to be reluctant to spend so much time submitting bids when they do not know what kind of rules will be applied when award of contract is considered. Mayor Jones summarized the discussion by stating that he felt that award of bid should be made to the lowest responsible bidder and the determining factor when there is a question on a bid unit price, is that the figure that is written in words should be the one accepted. He stated that that is very clear in the bidding specifications. He stated that he is also concerned about the precedent that is being established by changing the rules because he felt that it was wrong to do so. He pointed out that Mr. Ortiz is a very responsible contractor who had performed good work for the City, and he is very surprised that he would not want to adhere to the rules established by the City. Council Member Guerrero stated that he would like to respond to the statements made by the AGC representatives. He stated that he felt that it was important for them to know that this Council does not have the benefit of knowing what the unit prices are when the bids are opened. Council Member Slavik stated that her concern today primarily is to strengthen the City's guidelines. She then made the following suggestions: (1) she would like to see the City not allow any revision of figures on any bids submitted; (2) because of a possible implication of favoritism, there should be no phone calls made by the Engineering Staff to the bidders; (3) she would like to see the bottom line figure considered to determine which are the lowest bids; and (4) the City needs strict guidelines to protect the Council as well as the Staff. Mrs. Slavik concluded by stating that she did not think any revision should be allowed on any bids. Council Member Kennedy pointed out that the lowest bidder is not determined during the reading of the bids in the Council Chamber because the proposals are taken to the Engineering Department and they are analyzed in order to determine who the low bidder is. rtes Regular Council Meeting April 4, 1984 Page 7 Council Member McComb pointed out that a contract has not been awarded at this point. He noted that the only thing established was who the low bidder was so that the assessment rates could be prepared prior to the public hearing. He stated that the proposals presented include estimated quantities of paving based on the estimate of the number of units, and when the contractor is actually on the job, the number of units may vary a great deal; therefore, the unit price is what should govern. He stated that he felt a new motion might be in order since none of those who had voted in favor of establishing A. Ortiz as the low bidder the preceding week seemed inclined to make a motion to reconsider. Mr. McComb stated that he felt that mistakes that had been made in the past were actually honest mistakes, but the the mistake on this one was quite obvious because later the bidder changed his unit price in both words and the figure. A motion was made by Council Member McComb that the City Council adhere to the unit price as submitted and award the contract to the lowest bidder on that basis. Mayor Jones called for a legal opinion because he stated that he thought that to reconsider the matter would require a motion by someone who had voted in favor of the motion the preceding week. City Attorney Aycock stated that he felt that a motion would be in order when the award of contract is considered. City Manager Martin explained that the process on a special assessment project is that the unit prices of the lowest bidder are used in calculating the assessments; the Council conducts a public hearing on the preliminary assessment roll; and after that, the hearing is closed and the contract is awarded. He explained that the Staff needs a determination of the unit prices so that the assessment rate can be established before the public hearing and notices are mailed to the property owners. Mayor Jones inquired about the legal impact if all of the bids on this project are rejected and the City went out for bids again. City Manager Martin stated that for one thing, it would delay the project but asked Mr. Lontos to further explain. Assistant City Manager Lontos stated that the practical solution would be not to go out for bids again unless there was a substantial change in the design of the project. He explained that it would be very difficult for the contractors to submit a bid on the same project without any changes after they are aware what everyone else has bid. Council Member Berlanga alleged that this whole project got off to a bad start because the City Council did not receive Mr. Ortiz' bid until after the other bids had been opened and his bid was brought down to the Council Chamber after he called the Engineering Department inquiring about his bid. Utes negular Council Meeting April 4, 1984 Page 8 Mr. Faris addressed the Council again and stated that that was not quite true because his company was called that afternoon and informed that they were the low bidder; later they were called and informed that Mr. Ortiz' bid had been discovered and opened and Ortiz was the apparent low bidder at the time of that opening. He stated that he was called again later and informed that ,averocl was in fact the low bidder after the bids had been checked. He stated that he would like to make one more point and inquired which Council Member's District this project is in. He pointed out that the property owners in the George Evans School District Project Area are going to have to pay about $8,000 more if the award is made to Ortiz than if his company is awarded the contract. Council Member McComb addressed the remarks made by Mr. Berlanga and stated that in defense of the City Secretary's Office, he would like to remind them that the bid was misplaced temporarily since it was submitted much earlier than the other bids and due to the fact that work was progressing on the Corpus Christi '90 Project that day. He reminded the Council that the bid was found in a timely manner and was properly opened before the City Council. Council Member McComb then made a motion that the award of the contract for this project be issued to the low bidder based on the guidelines in which the bid was solicited with the written unit price established as the guideline. Council Member Kennedy seconded the motion and stated that he did not think that the City could make their specifications any clearer than they are right now and that is exactly what Council Member Slavik had asked for. Council Member Slavik stated that she would also like to see if the Council could establish a rule that there are no phone calls made regarding contractors' bids; therefore, she wants more guidelines. Council Member Guerrero stated that the rules and regulations are already in existence, but the City Council has the right to accept the most advantageous bid and for that reason, he cannot support the motion. Council Member Brown stated that he voted last week in favor of the motion to declare Mr. Ortiz as the low bidder because Mr. Lontos had called contractors in the past to clarify their unit price bids. Council Member Mendez pointed out that the Council has the right to make decisions that are fair and equitable and the topic under discussion is this particular contract. He stated that he sincerely believed that Mr. Ortiz made an honest mistake in inserting his unit prices on the item under question. He questioned the statement made by the Staff that $3.00 was not a reasonable bid when everyone else bid a much larger amount. He pointed out that Mr. Ortiz had bid $3.00 for the same type work on a subsequent contract. Council Member Kennedy stated that he would like to have Mr. Lontos comment as to whether or not a similar incident had occurred. utes regular Council Meeting April 4, 1984 Page 9 Assistant City Manager Lantos stated that there was one other incident involving JCO on the Timon Boulevard Median Landscaping in that the unit price submitted on one item was completely out of line and the correct figure was inserted. City Manager Martin explained that there are a lot of mistakes as a result of which the City Staff has to go to the written word and in which the unit price was so ridiculous that it was an obvious error. Mayor Jones called for the vote on Mr. McComb's motion and it failed to pass by the following vote: Jones, Turner, Kennedy and McComb voting, "Aye"; Berlanga, Brown, Guerrero, Mendez and Slavik voting, "No". Mayor Jones referred to the emergency posting and stated that the purpose of the presentation was to allow the Buccaneer Commission Members to speak on the request to cancel or change the date of the Buccaneer Days' Parade. Council Member Kennedy stated that he does not plan to vote to change the day of the parade. Mayor Jones explained that the Council had a discussion of about thirty minutes during the Morning Workshop session on the question of the Buccaneer Days' Parade and they felt that to make sure that everyone concerned could be heard, an emergency posting of a presentation in consideration of the matter was posted to add to the agenda. He stated that he will allow the Buccaneer Commission to speak for thirty minutes on this issue. Mr. Bill Anderson stated that he had been selected to attempt to answer any questions the Council would like answered, but that he as not even aware what the problem was. Mayor Jones explained that the Council had heard a number of speakers during the Morning Workshop Meeting who had requested that the day of the Buccaneer Parade be changed so as not to conflict with election day and the attendance at the precinct caucuses between the hours of 7 and 9 p.m. Mr. Anderson stated that he had been a precinct chairman for many years and in all that time, he had never encountered a problem because the caucuses are conducted at 7:00 p.m. and they usually are completed in about fifteen minutes which gives ample time to arrive at a place to watch the parade. He explained that the reason they have to have the parade on that particular day is because of a series of events at which the same bands and floats appear in other cities, particularly in San Antonio. He pointed out that this event brings in millions of dollars to the City of Corpus Christi and reminded the Council that the City has entered into a contract with the Buccaneer Commission, issued permits, and he questions the reason at this late date, the Buccaneer Commission is being .utes ,egular Council Meeting April 4, 1984 Page 10 presented with requests to change the day of the parade. He stated that if they cannot have the parade on that Saturday night, the entire ceremonies might as well be cancelled. He stated that he did not see any reason for them to be involved in politics at all. He explained that out of the 113 precincts in the County, only about twenty people will attend each of those precinct caucuses. He expressed the opinion that this is not a question of voting because citizens can vote any time between 7:00 a.m. and 7:00 p.m. Mr. Anderson continued by stating that they had checked on the 1980 elections, at which time, 29% of Nueces County voters exercised their right to vote while the rest of the State only voted 21%. He stated that the Buccaneer Days' Celebration is something they have worked on very hard for more than a year; they are all volunteers; and he requested that they be allowed to go ahead with the fine events that are scheduled. He then introduced Members of the Buccaneer Commission; Members of the Bucaraders and Members of the Las Donas de la Corte. Council Member Berlanga inquired if it would be possible to move the day of the parade to either a week later or a week earlier and inquired as to which they thought was more important, a parade or the democratic process. Mr. Anderson stated that he has nothing to do with the right to vote. Mr. Berlanga continued by stating that in his neighborhood, the children are very excited about getting to the parade; their parents must accompany them; and frequently they do not have an opportunity to vote during the day because of the pressure to attend the parade. Council Member Mendez stated that he understood that this has been brought up before during elections years, particularly when the Presidential Election is being conducted. He stated that he agreed that it would be difficult to change the week for the parade but he was of the opinion that it might be possible to change the night of the parade to Friday or Sunday. Mr. Anderson contended that they have attempted to change the night many times but there are too many problems in changing their dates. Council Member Mendez stated that this has been discussed for many years and he felt that they should work together to try to resolve the matter by changing the date of the parade. Mayor Jones inquired as to how often there is a conflict in the dates, and Mr. Anderson replied that it occurs every four years. He explained that the State Legislature has been attempting to change the primary date to July so that there will not be such a long period of time between the primary and the actual election. He stated that this would be preferable and would resolve all of the problems. utes Regular Council Meeting April 4, 1984 Page 11 City Manager Martin explained that the conflict will occur again in 1986; the next conflict will be in 1990; but there will not be a conflict in 1988. Mr. Jack Bell, representing the Restaurant Association, explained that the restaurants of Corpus Christi have been dependent upon Buccaneer Days for business for many years, and if the date of the parade is changed to Friday, they will not benefit from the many thousands of dollars that are spent by visitors to this City. Ile explained about all of the preparations that have already gone into serving people attending Buccaneers Days in all of the restaurants. He pointed out that there would be a great loss if the date was changed at his late time. Mr. Richard Goodpasture, representing the Hotel Villa del Sol, stated that they would like to see politics kept out of this matter and he felt that it was in the best interest of the City for the Buccaneers Days' Parade to be conducted on the date scheduled since they have been working on the event for over a year. Mrs. Betty Brandesky, speaking as a private citizen, stated that she could not understand why if this has been such an issue in the past, the opponents of the Buccaneer Days' Parade waited until one month before the event to request that the date be changed. She stated that she always participates in the precinct caucus and concurred with the estimate that only about twenty people attend. She stated that it is always over in plenty of time for her to get to the parade and review all of the units in the parade. Mrs. Betty Jean Young, President of Las Donas de la Corte, stated that they will have thirteen visiting duchesses in the City; there will be many guests to the events from out-of-town; and there will be many economic advantages from these guests to the City. She stated that they would be willing to try to cooperate with the politicians if the matter had been discussed much earlier, but a large investment has already been made and it is impossible to change the dates of the events now. Mayor Jones noted that the parade permit has already been issued and inquired about what recourse the Council has. Assistant City Attorney John Bell stated that the Council can revoke a parade permit if it is not in accordance with all of the guidelines. City Manager Martin explained that the ordinance dictates that if all of the conditions have not been met for the parade permit, the Council can revoke such a permit. A motion was made by Council Member Kennedy that this City Council reconfirm their commitment made with the Buccaneer Commission and that the program continue as planned. The motion was seconded by Mayor Pro Tem Turner. Ates Regular Council Meeting April 4, 1984 Page 12 Council Member Brown stated that he has participated in the precinct conventions for many years and it was true that these conventions formerly could be conducted at various times during the day, but they are scheduled for 7:00 p.m. this year. He stated, however, that he did not see how the Council could revoke the parade permit now but he would like to suggest that the Buccaneer Commission work to change the day of the parade. Mayor Jones called for the vote on Dr. Kennedy's motion and it passed as follows: Jones, Turner, Brown, Kennedy, McComb and Slavik voting, "Aye"; Berlanga, Guerrero and Mendez voting, "No". Council Member Guerrero then made a motion that the City Council give notice that they will cancel the lease agreement with the Buccaneer Commission unless they agree not to have the parade on May 3, 1986. The motion was seconded by Council Member Mendez. Council Member McComb stated that he was of the opinion that for this Council to pass such a resolution that they are going to rule by intimidation is asinine. He reminded the Council that Mr. Anderson has stated that they have studied this issue from every angle and he stated that he has no reason to dispute the statement made by Mr. Anderson. He pointed out that the Buccaneer Days' Parade follows San Antonio and stated that he would encourage at least five of the Council Members to vote against such a motion. Council Member Slavik stated that she would like to encourage that negotiations be conducted but she felt that it would be premature to vote on such a motion today in regard to the parade in 1986. She stated that she is concerned and would like to urge that the Buccaneer Commission meet with the whatever group wants the date changed to work out the problem. Council Member Guerrero stated that unless the Council establishes policy, the Buccaneer Commission will do nothing. Mayor Jones and Council Member Brown both indicated that they would like for the Buccaneer Commission to work with the parties to change the date of the parade. Mayor Jones called for the vote on Council Member Guerrero's motion and it failed to pass by the following vote: Berlanga, Guerrero and Mendez voting, "Aye"; Jones, Turner, Brown, Kennedy, McComb and Slavik voting, "No". Mayor Jones declared a five-minute recess at 3:55 p.m. Mayor Jones reconvened the Regular Council Meeting at 4:00 p.m. and called for consideration of the Consent Motions on items 1 through 9. utes Regular Council Meeting April 4, 1984 Page 13 1. Bids be received April 10, 1984 for a twelve months service agreement with option to extend for an additional twelve months, at the same terms and conditions, subject to the approval of the City Manager, or his designee, for auto air conditioning repairs to City vehicles. Maintenance Service does not have personnel or equipment to perform these repairs. 2. Bids be received April 17, 1984 for a twelve months supply agreement with an option to extend for an additional twelve months subject to the approval of the seller and the City Manager or his designee, for swimming pool chemicals, including chlorine, muratic acid, bicarbonate of soda, caustic soda, soda ash, and calcium hypochloride. 3. Bids be received May 1, 1984 for firefighting Foam for the Fire Department. Estimated expenditure is $13,000 with funds available in the 1983-84 Budget. 4. Approving the purchase of one trailer mounted sludge pump for Wastewater Services from Alamo Iron Works, based on low bid meeting specifications for the total of $14,190. This item is budgeted in the 1983-84 Capital Outlay. 5. Twelve months supply agreement with option to extend for an additional twelve months at the same terms and conditions, subject to the approval of the supplier and the City Manager, or his designee, for automotive, commercial and golf cart batteries be approved based on low bid to Energy Battery Co., for an estimated annual expenditure of $47,298.08. Prices have decreased approximately 10.7% since last contract October, 1982. Ten bid invitations were issued and ten bids were received. 6. Plans and specifications of the installation of a security fence at the Corpus Christi International Airport be approved and bids be received May 2, 1984. The project includes the installation of a six-foot chain link fence, a thirty-foot rolling gate, and the relocation of certain portions of present barbed wire fence, all totaling 9,130 feet, at the northern portion of the Airport property. Federal Aviation Administration will participate on a 90% Federal/10% City basis. 7. A public hearing be held on April 18, 1984 on changing the name of Trinity River Drive to Calaveras Drive. This street is located in Wood River Unit 2. The two property owners on this street have agreed to the street name change, and the request was made on behalf of the Messiah Lutheran Church. All affected City departments and the U. 5. Postmaster have no objections to the change. 8. A public hearing be scheduled for April 25, 1984, on the closure of a small unused portion of Austin Street immediately north of Rossiter Street. Three abutting property owners have expressed a desire to purchase this .07 acre tract from the City. .tes Regular Council Meeting April 4, 1984 Page 14 9. Authorizing acquisition of a parcel (#10) located in Block 44 at the corner of N. Staples and Lipan Streets in connection with the City Hall Site Land Acquisition Project. City Manager Martin referred to item 9 and stated that he is very proud of this land acquisition because it is the parcel at the far corner of the site where the individual has a gas station. He explained that he cannot effectively move the gas station, so the City is going to negotiate so that it can be operated for five years. He stated that this is a good solution to a problem, and the Staff has agreed that if for some reason the City Council decides after three years that the parcel is not needed for the City Hall project, the owner of the gas station has the first right to purchase the property back. Mayor Jones called for comments from the audience on Consent Motions 1 through 9 and there was no response. A motion was made by Mayor Pro Tem Turner that the Consent Motions, items 1 through 9 be approved as presented; seconded by Council Member Guerrero; and passed unanimously. * * * * * * * Mayor Jones called for consideration of Consent Ordinances and Ordinances from Previous Meetings on items 10 through 23. City Manager Martin informed the Council that the preceding week, the Council had requested that an explanation as to whether ordinances are one -reading ordinances or three -reading ordinances be listed on the agenda. He called their attention to the second paragraph of the first page of the agenda in which the statement is made that all ordinances not designated as first, second or third reading are to be adopted on a one -reading basis. He inquired if this was satisfactory with the Council and no one indicated any objection. Council Member Slavik referred to Ordinance No 11 which authorizes an amendment to the contract regarding the Women, Infants, and Children's special nutrition program, and inquired as to how much the City would be reimbursed. Assistant City Manager Bill Hennings stated that the City will be 100% reimbursed and this item will increase the total revenue received for this program. Mayor Pro Tem Turner referred to items 15 and 16 which pertain to acquisition of parcels for the Navy Clear Zones Land Acquisition Project and inquired if the two lots to be purchased are developed lots. Mr. Lontos explained that the parcels are school lots and the remaining property around that block has previously been acquired by the City. Mayor Pro Tem Turner inquired if the City would have to maintain the lots, and Mr. Lontos stated that the land could possibly be used for a nursery or a park. Ites Regular Council Meeting April 4, 1984 Page 15 City Manager Martin stated that there are no plans yet, but the City could consider leasing the land to relieve the City from the expense of maintenance. He stated that some of the large areas would be good for grazing leases and farm land. Council Member Mendez stated that the Council had been concerned that the Federal Government might purchase the land at a later date. City Manager Martin stated that the Federal Government is at this time considering allocating money in the budget for the purpose of purchasing the land in the Navy Clear Zones. Mayor Jones asked for an explanation of Ordinance 19 which changes the street names of seven streets on Padre Island. City Secretary Read explained that this was the request of the Padre Isles Property Owners Association; the public hearing on this was conducted on March 28th; and the reason for it is to eliminate the confusion that exists because of duplicate names on Padre Island. He stated that it had been through all of the proper required procedures for street name changes and everyone concurs with the changes. There were no comments from the audience on the ordinances; City Secretary Read polled the Council for their votes; and the following ordinances were passed: 10. ORDINANCE NO. 18159: AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH NUECES DEVELOPMENT COMPANY, PROVIDING FOR CITY PARTICIPATION IN DEVELOPMENT OF A PORTION OF WILLOWOOD UNIT 5 FOR PARK PAVING IMPROVEMENTS; APPROPRIATING $7,595.62; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez and Slavik voting, "Aye". 11. ORDINANCE NO. 18160: AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE AGREEMENT WITH THE TEXAS DEPARTMENT OF HEALTH FOR THE WOMEN, INFANTS, AND CHILDREN'S SPECIAL NUTRITION PROGRAM WHICH MEETS THE REQUIREMENTS SET OUT IN UNIFORM GRANTS AND CONTRACT MANAGEMENTS STANDARDS AND INCREASES THE REIMBURSEMENT AMOUNT FROM THE TEXAS DEPARTMENT OF HEALTH; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez and Slavik voting, "Aye". ates Regular Council Meeting April 4, 1984 Page 16 12. ORDINANCE NO. 18161: AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH NUECES DEVELOPMENT COMPANY, PROVIDING FOR CITY REIMBURSEMENT OF 50 PERCENT OF THE COST OF DRAINAGE CHANNEL IMPROVEMENT WORK IN WILLOWOOD UNIT 5 SUBDIVISION; APPROPRIATING $21,838.00; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez and Slavik voting, "Aye". 13. ORDINANCE NO. 18162: APPROVING CHANGE ORDER NO. 1 TO THE CONTRACT WITH IBANEZ CONSTRUCTION COMPANY FOR THE COLE STREET IMPROVEMENT PROJECT WHICH PROVIDES FOR THE ADDITION OF 470 LINEAR FEET OF 8" DIAMETER SANITARY SEWER IMPROVEMENTS AND RELATED WORK; APPROPRIATING $6,752; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez and Slavik voting, "Aye". 14. ORDINANCE NO. 18163: AUTHORIZING THE REIMBURSEMENT OF $18,837.75 TO THE LAKES ASSOCIATES FOR THE INSTALLATION OF A WATER GRID MAIN IN THE LAKES UNIT 1 SUBDIVISION AND $9,429.40 FOR INSTALLATION OF AN OFFSITE 18" SANITARY SEWER TRUNK LINE; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez and Slavik voting, "Aye". 15. ORDINANCE NO. 18164: AUTHORIZING THE EXECUTION OF THE DOCUMENTS NECESSARY FOR THE ACQUISITION OF PARCEL 14 IN CONNECTION WITH THE NAVY CLEAR ZONES LAND ACQUISITION PROJECT; APPROPRIATING $5,877; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez and Slavik voting, "Aye". 16. ORDINANCE NO. 18165: AUTHORIZING THE EXECUTION OF THE DOCUMENTS NECESSARY FOR THE ACQUISITION OF PARCEL 15 IN CONNECTION WITH THE NAVY CLEAR ZONES LAND ACQUISITION PROJECT; APPROPRIATING $5,877; AND DECLARING AN EMERGENCY. rtes Regular Council Meeting April 4, 1984 Page 17 The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez and Slavik voting, "Aye". 17. ORDINANCE NO. 18157: DETERMINING THE NECESSITY FOR AND ORDERING THE IMPROVEMENT OF: Annaville Area No. 1 1. Forest Hill Lane, from Violet Road to Birdwood Lane, and 2. Redbud Drive, from Japonica Drive to Dead End. AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez and Slavik voting, "Aye". 18. ORDINANCE NO. 18158: APPROVING THE WRITTEN STATEMENT OF THE CITY ENGINEER OF VARIOUS COSTS FOR THE IMPROVEMENT OF THE FOLLOWING STREET: Annaville Area No. 1 1. Forest Hill Lane, from Violet Road to Birdwood Lane, and 2. Redbud Drive, from Japonica Drive to Dead End. DETERMINING THE PORTION OF SAID COSTS TO BE ASSESSED AGAINST ABUTTING PROPERTY AND THE PORTION TO BE PAID BY THE CITY; SETTING A PUBLIC HEARING ON THE PRELIMINARY ROLL FOR MAY 2, 1984 AT 3:00 P.M., IN THE CITY COUNCIL CHAMBERS AT CITY HALL, 302 SOUTH SHORELINE BOULEVARD; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez and Slavik voting, "Aye". 19. ORDINANCE NO. 18166: CHANGING THE NAME OF BRIGANTINE DRIVE TO CATAMARAN DRIVE, GUNWALE STREET TO KETCH STREET, ISLA PINTA COURT TO KEY LARGO COURT, LONG BOAT COURT TO RUDDER COURT, SOCORRO DRIVE TO RUNNING LIGHT DRIVE, TORTUGAS AVENUE TO SAND DOLLAR AVENUE AND TORTUGAS AVENUE TO CROWSNEST AVENUE; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez and Slavik voting, "Aye". Ates Regular Council Meeting April 4, 1984 Page 18 20. FIRST READING: CLOSING AND ABANDONING A 50 FOOT WIDE UNNAMED STREET ADJACENT TO SHERWIN PLACE SUBDIVISION; A 5 FOOT WIDE DRAINAGE EASEMENT OUT OF LOT 10, BLOCK 1, SHERWIN PLACE, A 10 FOOT WIDE UTILITY EASEMENT OUT OF LOTS A, B, AND C, MT. VERNON SHOPPING CENTER, AND A 5 FOOT WIDE UTILITY EASEMENT OUT OF LOT C, MT. VERNON SHOPPING CENTER, ABANDONING TWO EASEMENTS; AND LISTING THE PROVISIONS THEREOF. The foregoing ordinance was read for the first time and passed to its second reading by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez and Slavik voting, "Aye". 21. SECOND READING: AMENDING CHAPTER 35, OIL AND GAS WELLS, OF THE CITY CODE TO CONSOLIDATE THE FOUR ARTICLES OF THE CHAPTER, EACH FOR DIFFERENT GEOGRAPHICAL AREAS, INTO ONE SET OF REGULATIONS FOR ALL AREAS AND AMENDING THE AREA OUTSIDE OF THE CITY LIMITS TO BE REGULATED AND AMENDING THE METHODS FOR PERMITTING AND UNITIZATION AND PROVIDING FOR INCREASED PUBLIC LIABILITY INSURANCE REQUIREMENTS; AND PROVIDING FOR PUBLICATION AND SEVERABILITY. The foregoing ordinance was read for the second and passed to its third reading by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez and Slavik voting, "Aye". 22. THIRD READING - ORDINANCE NO. 18167: AMENDING CHAPTER 36, ARTICLE III OF THE CODE OF ORDINANCES TO ESTABLISH RENTAL CHARGES FOR THE DIVIDED PORTIONS OF THE EXHIBIT HALL; ESTABLISHING A 15 PERCENT DISCOUNT FOR NON-PROFIT LESSEES; ELIMINATING THE TEN PERCENT OF GROSS RECEIPTS RENTAL OPTION FOR CLASS I PUBLIC SHOWS IN THE EXHIBIT HALL AND BANQUET HALL; ESTABLISHING A CLASS I RATE FOR THE SMALLER PORTION OF THE BANQUET HALL (ROOM 203B); DELETING THE INSURANCE REQUIREMENT FOR PRIVATE PARTIES USING THE BANQUET HALL OR A PORTION OF THE EXHIBIT HALL; ESTABLISHING RENTAL FEES FOR CITY -OWNED TABLE CLOTHS, NAPKINS AND TABLE DRAPES; INCREASING THE EVENING, WEEKEND AND HOLIDAY RENTAL FEES FOR THE CONVENTION CENTER MEETING ROOMS; AND ESTABLISHING EQUIPMENT RENTAL FEES FOR NON -LESSEES OF THE FACILITY; PROVIDING FOR SEVERANCE AND FOR PUBLICATION. The foregoing ordinance was read for the third time and passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez and Slavik voting, "Aye". 23. THIRD READING - ORDINANCE NO. 18168: CLOSING AND ABANDONING THAT ONE-HALF OF DOSS STREET ADJACENT TO LOT 1, BLOCK 3, BRENNAN ADDITION; AND PROVIDING FOR THE REPLAT OF SAID PROPERTY. .tes Regular Council Meeting April 4, 1984 Page 19 The foregoing ordinance was read for the third time and passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez and Slavik voting, "Aye". Mayor Jones called for consideration of the following motion frcm the Regular Agenda. 24. Consideration of recommendation by the Transportation Advisory Board to enact an ordinance prohibiting the consumption of alcoholic beverage in a motor vehicle in a public place. City Manager Martin explained the history of this item, reminding the Council that they had before them the possibility of a local law prohibiting open containers in motor vehicles similar to the bill that was considered by the Legislature but not approved by them. He explained that the Transportation Advisory Board now has a different ordinance which specifically refers to the consumption of alcoholic beverages in public places. He stated that it is their opinion that it might be a legal method of invoking the aim prohibiting open containers. He stated that the City of Arlington, Texas had adopted a similar ordinance, but there is a legal opinion from the City Attorney's Office attached to the ordinance because they feel that such an ordinance would be difficult to enforce. He explained that the reason it is on the agenda is because one of the Council's Advisory Boards has recommended it and the Staff feels obligated to present it to the Council. Mayor Jones inquired if the ordinance in Arlington had been challenged, and the City Manager stated that he did not know of a challenge. Council Member Brown inquired about an explanation of "public place", and Mr. McComb pointed out that there is a definition of public place in the ordinance. Council Member Berlanga pointed out that this might help eliminate the practice of throwing containers away on public beaches. Mayor Jones pointed out that this refers to vehicles only. Assistant City Attorney Bell stated that this ordinance is exactly like the one passed by the City of Arlington with just the words, "City of Corpus Christi" substituted. Council Member Guerrero inquired if the City had had any directive on this from the National League of Cities, and City Manager Martin explained that that organization typically does not get involved in State matters. Mayor Jones called for comments from the audience. ztes Regular Council Meeting April 4, 1984 Page 20 Mr. Ben Sley, speaking on behalf of an organization entitled, "RID", spoke in favor of passage of this ordinance. He provided statistics on the number of alcohol-related accidents in 1983 and stated that many of those were caused by drinking in automobiles. He stated that he felt that this ordinance could be enforced because it does not refer to open containers but refers to consumption and that is the basis on which the ordinance was passed in Arlington. He expressed the opinion that since this is not specifically prohibited by State Law, the ordinance would be upheld in a Court of Law. Mr. Sley continued by referring to the Legal Staff's opinion that such an ordinance would require a great deal of money on the part of the City to defend the ordinance against challenges. He pointed out that there would only be one challenge and he was of the opinion that the County Attorney would be the one to handle such cases. Council Member Mendez agreed that the City would not incur any costs of litigation if this was ruled not to be valid because the County Attorney would take the case. He pointed out that as a result of the study on the City -County Jail facilities, it was determined that there had been a great increase in alcoholic arrests over the past year. He stated that his feeling was that an ordinance of this nature would not be too effective even though everybody is of the opinion that alcoholic drivers should be kept off the streets. Council Member McComb agreed that there has been a tremendous increase in DWI cases. City Manager Martin stated that if the Council felt that they would like to pass such an ordinance, the wording would be changed on the ordinance that is before them so that it will apply to Corpus Christi. Council Member Mendez inquired if there would be any litigation costs if someone challenged the ordinance, and City Manager Martin stated that their cost would be only for one challenge -- it would not be a number of appeals but the City does handle its own appeals. Mayor Jones inquired about laws in other states. Mr. Sley explained that the law in thirty-eight states prohibits open alcoholic containers; eight states are considering such a law; and Texas is the only major state that does not have an open container statute. Mayor Jones then asked about the ability of the Police Department to enforce this ordinance, and City Manager Martin explained that the City does have the ability to enforce it but if it became a major type of issue, there would be a need for the word to get around the state that we have such a law, possibly through the Convention and Tourist Bureau advertising. Mayor Pro Tem Turner inquired about the kind of charge that would be levied, and City Manager Martin stated that it would be a Class C misdemeanor for a fine of up to $200. .tes Regular Council Meeting April 4, 1984 Page 21 Council Member Mendez challenge. City Manager Martin certain amount, they could $100. Mr. Sley stated that less than $50. pointed out that a agreed stating that not be appealed and in Arlington, Texas fee of that size would all for a if the fines are kept below a he believed that that amount was , he understood that the fine is Mayor Jones pointed out that if this ordinance is passed, some people would be offended because they feel that it is their right to drink in their automobiles. He noted that this problem was worse in South Texas than anywhere else in the State and he feels that it was appropriate to try to do something about the problem, and passage of this ordinance would be worth taking that risk. A motion was made by Council Member McComb that the Legal Department be requested to draft an ordinance related to the consumption of alcoholic beverages in motor vehicles in public places and bring it to the Council the following week for first reading; seconded by Council Member Slavik; and passed unanimously. Mayor Jones announced the public hearing on the following items: 25. STREET CLOSING - Closing and abandonment of Mestina Street between Sam Rankin and Staples Streets, and on the closing of Alameda Street between Leopard and Lipan Streets. These are the streets within the area being acquired for the new City Hall. City Manager Martin stated that if no one in the audience was present to speak in opposition to this, the Staff could make a very short presentation. Mayor Jones ascertained that no one in the audience wished to speak in opposition. City Manager Martin explained that the Staff planned to have this public hearing well in advance of the actual street closing to avoid the problem that occurred in connection with the street closing near the new library site. He explained that the City does not at this point own all of the adjacent property; therefore, the ordinance will not be on the agenda for consideration for some time. He explained that the Staff is negotiating for a small amount of additional property so that when the closing is in effect, the City will own all of the adjacent property. A motion was made by Council Member Brown that the hearing be closed, seconded by Council Member Berlanga and passed unanimously. rtes Regular Council Meeting April 4, 1984 Page 22 Mayor Jones announced the hearing on the following item: 26. Hearing on the request of Corpus Christi Performance Center, Inc., dba Speedway Park, for the issuance of an outdoor music festival annual permit, in accordance with Article V of the Code of Ordinances. All health, sanitation, and fire safety requirements have been met and the facility has been approved by the Building Division. City Secretary Read explained that this is the request which requires that a hearing be held before the annual permit for the outdoor music festival at Speedway Park is granted. He stated that if there was no opposition, there would be no further explanation. Mayor Jones ascertained that no one in the audience wished to speak in regard to this matter. A motion was made by Mayor Pro Tem Turner that the annual outdoor music festival for Corpus Christi Performance Center, Inc. dba Speedway Park be approved; seconded by Council Member Berlanga; and passed unanimously. A motion was made by Mayor Pro Tem Turner that the Council convene in closed session to discuss land acquisition, seconded by Council Member Guerrero and passed unanimously at 5:10 p.m. City Secretary Read stated that the closed session is in accordance with Article 6252-17 of V.A.C.S. * Mayor Jones reconvened the Regular Council Meeting at 5:31 p.m. and announced the public hearing on the reprogramming of Community Development Block Grant funds. A motion was made by Council Member Guerrero that any action on the $900,000 designated for the Downtown Parking Fund be tabled for 90 days, seconded by Council Member Brown and passed unanimously. Assistant City Manager Tom Utter referred to the memorandum and material provided the Council on March 15th in which the Staff recommended reprogramming of certain funds and the projects into which the funds should be placed. He stated that by the motion just passed, the $300,000 designated for reprogramming has been eliminated. He stated that there would now be a need to eliminate that $300,000 from the reprogramming recommendation. .tes Regular Council Meeting April 4, 1984 Page 23 Mr. Utter displayed a copy of the large notice of the public hearing that was published in the Caller -Times advertising this public hearing. He informed the Council that on April 17, 1984, the Planning Commission will have their first hearing on the 10th Year Community Development Block Grant Program. He stated that the Staff had examined the previous recommendations and they still recommend the reprogramming as previously outlined. He stated that since the Council had removed the $300,000 previously recommended for reprogramming from the Parking Fund, he would now like to recommend that $300,000 be omitted from item 4 for the drainage problems in the McNorton/Clarkwood Road Area with the understanding that an additional $300,000 will be included in the 10th Year Program. He suggested that if the Council makes that commitment, the Engineering Department could begin that project. Council Member Slavik referred to item 2 for the reprogramming of the funds for the Demonstration Rental Rehabilitation Program and asked for an explanation. Mr. Utter stated that this is explained in Exhibit 5 and noted that this particular project is from HUD and basically, the City provides these funds for Section 8 participants to go along with this program. He stated that the reason for this allocation is that during the coming year, the City will receive funds from the Housing Block Grant for a Rental Rehabilitation Program. He stated that in effect, this is just to get the City off to an early start because they anticipate receiving about $100,000 from the HUD Program. Council Member Slavik then questioned the proposal that the City provide funds for demolition of substandard structures which provide incentives for elimination of substandard structures. Mr. Utter explained that the second goal fits in with the HUD definition of blighted areas. He stated that the City has found that with just a small incentive, the property owner will move forward, and often, without the economic incentive, structures will be allowed to remain where they are for many years. He explained that this particular program would give direct economic incentive to private owners to have substandard structures removed. He stated that he felt that this could be tied into a contract for redevelopment, and if the redevelopment does not occur, the money would have to be paid back. Mayor Jones inquired if a lien would be attached to the property, and Mr. Utter replied in the affirmative so that the City would receive a refund. He stated that the Staff anticipates that if this is successful, they would recommend allocation for additional funds from future CD Programs. Mayor Jones asked about the number of structures that were demolished by the City after the hurricane, and Mr. Utter stated that about 310 structures were demolished. He explained a similar project by which substandard structures were demolished through an Urban Renewal Project. utes Regular Council Meeting April 4, 1984 Page 24 Council Member Slavik then referred to item 7 which recommends that $65,000 be reprogrammed for development of existing parks and a new one in the Spohn Hospital Area. Mr. Utter explained that this is the Staff's recommendation and stated that the park for the Spohn Hospital Area was proposed during the public hearings on the Spohn Hospital Area Street Improvement Project. He explained that at the end of the public hearing, a request was made by the residents of that area for a small park in which children could play. He explained that the City will have to purchase a couple of small lots to provide space for such a park but the residents indicated their concern that their children had to cross major streets to get to Cole Park or South Bluff Park. Council Member Kennedy commented that the Del Mar Neighborhood Association is interested in the Adopt a Park Program. Council Member Slavik then referred to item 8 recommending the reprogramming of $225,000 into the Revolving Rehabilitation Loan Fund. She inquired as to who is eligible for this. Mr. Kelly Elizondo, Director of Housing and Community Development, stated that there are various loan programs and those loans will be available at interest rates of 0%, 3%, and 6%, based on income. He elaborated on the method of determining the percentage and stated that he, personally, oversees this program. Mr. Utter explained that this is from the Supplemental 9th Year Program and that is the reason this should be expended as soon as possible. Mayor Jones called for comments from the audience on the reprogramming. Mr. J. Preston Pullam, representing HIALCO Council, stated that they understood that something was to be included in this reprogramming. He stated that $150,000 was left in the HIALCO and the Northside Business Association fund, and they have some recommendations for the use of that money. He stated that they would like to rehabilitate the HIALCO Building and that they had met with Mr. Elizondo a short time ago to discuss this. Mr. Elizondo stated that he became aware of this request earlier in the week and they do want to encourage some activity from Census Tracts 4 and 5. Mr. Utter explained to the Council that HIALCO had $200,000 in the Commercial Loan Program for Census Tracts 4 and 5; the Staff is not recommending reprogramming any of those funds; and there has been no discussion about reprogramming funds from those tracts. Mayor Jones emphasized the fact that the City is not taking any funds from Census Tracts 4 and 5 designated for the Commercial Loan Program. .tes Regular Council Meeting April 4, 1984 Page 25 Mr. Utter stated that the group with whom Reverend Elliott Grant has been working are asking for improvements to the HIALCO Building and for a recreation center at the transit yard space but this can be considered in the 10th Year Community Development Block Grant Program. Mr. Carlos Moreno, 203 Dolphin Place, reminded the Council that they had approved the naming of Lewis Wilmot Park and stated that they would like to have $65,000 of the reprogramming funds for development of that park. Mr. Utter stated that the City always tries to provide assistance for park development and stated that at the time LULAC approached the Park and Recreation Board requesting changing the name of Southgate Park to Lewis Wilmot Park, they had some good plans and specifications for development of the park. He stated that $65,000 would go a long way for development of the park. Mayor Pro Tem Turner referred to item 7 and pointed out that the only park listed was the Spohn Hospital Area Park. She inquired if the funds could be designated for the Lewis Wilmot Park instead. Mr. Utter stated that the Staff feels that they will have a large number of requests for park improvements for the 10th Year Community Development Block Grant. Mayor Pro Tem Turner then inquired if Spohn Hospital Area residents had requested this park, and Mr. Elizondo stated that during the neighborhood meetings, they had indicated that they would like to have funds for a small park in that area. Council Member Berlanga informed the other Council Members that the Spohn Hospital Area group has been informed that they will be eligible for $65,000 in funds; therefore, they have not submitted a request because they are waiting for the City to find lots to purchase for the park. Mr. Utter explained that this park will be considered again in the 10th Year Program, and since the Staff has still not found land for that park that is not too expensive, they would like for the Council to make the designation. Council Member Kennedy suggested that one-half of the funds listed in item 7 in the amount of $65,000 be designated for the Spohn Hospital Area Park and the other half be designated for the Wilmot Park. Mr. Utter stated that $30,000 would not be adequate for purchase of land for the Spohn Hospital Area Park. Council Member Slavik stated that she would like to have everything delayed until May 9th because she stated that she knew there would be park requests from Flour Bluff. ztes Regular Council Meeting April 4, 1984 Page 26 Following further discussion, Mayor Pro Tem Turner made a motion that the $65,000 in item 7 be allocated for the development of Lewis Wilmot Park and that funds for the Spohn Hospital Area Park be considered in the 10th Year Community Development Program. The motion was seconded by Council Member Berlanga and passed unanimously. Mr. Roy Graham addressed the Council and suggested that a study group be designated to investigate the possibility of a ship repair facility since it would be convenient and appropriate in this area. He stated that such a facility would provide jobs; it is a non-polluting activity; it would increase sales for merchants in the area; and there would be many other benefits. He stated that such a facility could be implemented and working in six months to a year. He recommended the appointment of representatives from several related entities. Council Member Kennedy suggested that Mr. Graham present this before the Corpus Christi '90 Development Task Force because they will be examining this type of activity. He requested that Mr. Graham put his request in writing and at the time public hearings are conducted before that Task Force, this be presented to that group. Council Member Mendez stated that he had discussed this with Mr. Graham and he felt that Dr. Kennedy's suggestion was very good. Council Member Slavik suggested to Mr. Graham that he discuss this with Mr. Melvyn Klein, who is the Chairman of the Business Development Commission. She stated that if he would call her, she would introduce him to Mr. Klein. No one else spoke in regard to the Community Development Reprogramming. A motion was made by Mayor Pro Tem Turner that the hearing be closed, seconded by Council Member Brown and passed unanimously. A motion was made by Mayor Pro Tem Turner that the Staff recommended reprogramming be approved with the exception of item #1 pertaining to the downtown parking which was deleted by motion and with the reduction of item 4 for the McNorton/Clarkwood Road Area from $700,000 to $400,000, and with the change in item 7 to designate that the $65,000 for the Park Program be designated for the Lewis Wilmot Park be approved. The motion was seconded by Council Member Mendez and passed unanimously. ites Regular Council Meeting April 4, 1984 Page 27 Mayor Jones called for Petitions or Information from the Audience on Matters not Scheduled on the Agenda. Mr. Jesse Flores, 5213 Bonner Drive, presented to the City Council a petition requesting that sidewalks be constructed in the Gardendale Area and the Williams Drive Area to serve both Blanche Moore and Cur Lady of Perpetual Help Schools. Mr. Flores mentioned an accident that had occurred involving a child on his way to school on Williams Drive. He stated that the principal of the school and others agree that sidewalks are needed in this area. He stated that he hoped that the City Council could help him get the sidewalks installed. City Manager Martin stated that he believed that the City Engineering Department had petitions from several of these streets for the Voluntary Paving Program. He informed the Council that he will investigate this and discuss it with the Staff. Mr. Flores agreed that Voluntary Paving petitions have been submitted and may be considered in the next bond election, but they hate to wait for five or six years for the sidewalks. City Manager Martin stated that he will check to see where these streets are on the list for the next bond program. Council Member McComb stated that Commissioner Borchard of Nueces County had contacted him on behalf of Mr. Flores; stated that he was unable to contact Mr. Flores; but he did contact Tom Utter and asked him to check to see if any of these streets could be considered in Census Tracts eligible for Community Development Block Grant funds. Mr. Utter stated that he has checked this area very careful and ascertained that it does not lie within an eligible Census Tract. Mayor Jones assured Mr. Flores that the Staff will check on this and have an answer for him in writing. City Secretary Read informed the Council that they had not voted on Ordinance No. 27 which approves the proposed use statement and reprogramming for Community Development Block Grant funds. He then polled the Council for their votes on the ordinance and it passed as follows: 27. ORDINANCE NO. 18169: APPROVING A PROPOSED USE STATEMENT AND REPROGRAMMING FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS AND APPROPRIATING FUNDS ALLOCATED UNDER SAID PROGRAM; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Berlanga, Brown, Guerrero, Kennedy, McComb, Mendez and Slavik voting, "Aye". ztes regular Council Meeting April 4, 1984 Page 28 There being no further business to come before the Council, on motion by Mayor Pro Tem Turner, seconded by Council Member Brown and passed unanimously, the Regular Council Meeting was adjourned at 6:37 p.m., May 4, 1984. DZ/rr I, LUTHER JONES, Mayor of the City of Corpus Christi, Texas certify that the foregoing minutes, same being for the period of April 4, 1984 thru April 25, 1984 inclusive and having been previously approved by Council action, are by me hereby approved as itemized. April 04, 1984 - Regular Council Meeting April 11, 1984 - Special Council Meeting April 18, 1984 - Regular Council Meeting April 25, 1984 - Regular Council Meeting