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HomeMy WebLinkAboutMinutes Watershore And Beach Advisory Committee - 05/02/2002 • 4 nia 26Cs 9 '1. Minutes �� ` g ` 4i R c- Regular Meeting ; �CFE4 a Water/Shore Advisory Committee `; OFFICES Thursday,May 2,2002 `z•: ` Members Present: Tom Anderson, Frank Beck, Alan Dinn (Chairman), Dr. Oscar Garcia (2), Dan Leyendecker (1), Steve Moody (Vice Chairman) (4), Dr. JoAnna Mott (1), Terri Nicolau (2) and Roy Pell Staff Present: George Noe, Deputy City Manager, Marco A. Cisneros, Director of Park and Recreation, David Ondrias, Assistant Director for Operations, Peter M. Davidson, Marina Superintendent, Rene Garza, Marina Field Supervisor and Benita Brunner, Management Aide Call to Order: Chairman Dinn called the regular meeting of the Water/Shore Advisory Committee to order at 5:33 p.m. in the Basement Training Room, City Hall and the Pledge of Allegiance was recited. Action on Minutes: The motion was made by Dr. Mott, seconded by Mr. Moody, to approve the April 4, 2002 Minutes as presented. The motion passed unanimously. Dr. Garcia reported that he had voted in opposition to the Committee endorsing the selection of Landry's as the development team with whom to negotiate for marina development. The motion was made by Mr. Anderson, seconded by Mr. Leyendecker-to approve the April 17, 2002 Minutes as corrected. The motion passed unanimously. Presentations and/or Public Comment: North Beach Sand Replenishment Project — Angel Escobar reported the original contractor was terminated for failure to provide sand that met specifications and for not being able to remedy problems associated thereto. The original project required moving 25,000 cubic yards (CY) of sand from the north groin to the south end of the beach and importing an additional 125 CY of new sand. The City will be entering into an agreement with the project's bonding company to reimburse the City all monies ($1.3 Million claim) expended plus what will be required to finish the project. The City has paid all but $73,000 of the original $1.4 Million Grant. The Grant was funded through the Texas General Land Office and they hired their own engineering firm and performed their own testing; the City administered the project. The new contractor, Longhorn Excavators has been allowed $1,190,000 and sixty days to complete the project. They are working in 300' increments and will proceed along the 2,450' of beach., They bulldoze 18" of the old sand into the water (which will result in additional beach width) and replace it with 18" of new sand. The old sand consisted of particles that were larger and it contained silt/clay that caused it to crust over when it got wet. The new sand is being tested at the manufacturer, upon arrival to the stockpile and after placement to ensure there is no contamination of the new with the old sand. SCANNED Water/Shore Advisory Committee Meeting Minutes -1- 0 Seawall Restoration Project - Angel Escobar gave an overview of how the seawall reconstruction project will be performed under separate contracts, beginning at the ship channel and ending at the Holiday Inn, that are expected to be completed within six years. Mr. Escobar reported: the city council awarded Laughlin Environmental, Inc. the first contract to complete a 210' section adjacent to the Art Museum, the (four panel) pilot program and north reach (1,500' LF); work on the first section will begin immediately and be completed by the end of September 2002; the project will proceed from Power Street to Peoples Street, through the Marina (to finish bulkhead work on portions of the Lawrence Street T-Head and Coopers Alley L-Head that was not completed during 1990- 91 repairs) and finally to McGee Beach; when the pilot program is completed, having provided the opportunity to evaluate the project's difficulty, the next portion design will begin in order to seek bids by early 2003 with construction to follow in the late spring, early summer of 2003; contractors are being limited to work within a one block long area at a time, including use of equipment and a barge to the waterside; project designers are working to protect public access as well as areas used by community events; the old seawall and sheet pile supports will not be removed but will remain as is for hurricane/storm protection; new piling will be driven 1-1/2' in front (at steps); the sidewalk will be removed; a sheet pile will be driven in the back section for additional lateral support; the voids will be filled; and other repairs will be performed as necessary; and the back sidewalk will be replaced with consideration given to the needs of surrounding businesses for access (i.e. ADA) and architectural/artistic interests. Brent Moore of Shiner Moseley & Associates, Inc. described plans to remove the old concrete and riprap and to install piling to anchor the wall immediately adjacent to the Art Museum and then to install a concrete walkway (6' 6" cap; 2' above water level) and hand railing around the facility. Mr. Escobar and Mr. Moore answered questions posed by the Committee members. Expansion of RTA Harbor Ferry Service - David Seiler, Director of RTA Operations, assisted by Vangie Chapa, Stewart Sher and Patti Collins, gave a brief history of water taxi operations over the past ten years ($1 per trip fare; average ridership 35,000 per year; primary operation season Memorial through Labor Day; operational costs $160,000; and providing service from the Marina to Corpus Christi Beach). Mr. Seiler reported that: the RTA's Board has approved funding for slip/site improvements (including shade structures [yet to be approved by City Engineering], access ramps [ADA compliant] and additional benches), making Peoples Street anadditional stop (to capture tourist/general public congregated in that area) and expanding operational hours during the summer season and during community festivals; the RTA has a one year (with three, one-year options) contract with Barney's Place (Danny/Julie Duzich); Barneys Place has a slip lease with the Marina and will need to establish an additional lease for city council consideration; the RTA plans a groundbreaking/kickoff at the Peoples Street stop on 05/24/02; future plans include establishing partnerships with those who benefit (hotels, motels, restaurants local attractions, etc.) to promote the service (discount offers, sponsoring free ride days, etc.); the route would run from the Peoples Street T-Head to the Barge Dock (to access local attractions and the convention center) continuing to the Texas State Aquarium and then returning to Peoples Street. Mr. Davidson responded to Water/Shore Advisory Committee Meeting Minutes -2- 05/02/02 questioning that: the boat operator would pay for slip improvements including the driving of additional pilings; the City offered the Flagship operator the opportunity to do piling improvements to his leased slip during the last piling project; the boardwalk will provide approximately seven feet (four feet of boardwalk and three feet of concrete bulkhead) of open walkway (Mr. Garza commented there was an additional twelve feet of walkway in front of the bulkhead and that ADA access was available at that point); pilings are permanent but the ramps and shade structures are portable and could be removed during inclement weather; the Marina currently receives slip rent from Barney's Place; special lease negotiations are on-going and could result in the Marina receiving the improvements and income in addition to slip rent; and other vendors would also be allowed to outfit their own boarding area. Mr. Seiler commented the RTA would reimburse on a prorated basis the boat operator for the site improvements. Mr. Stewart commented that the round-trip could take 30 to 40 minutes depending on conditions in the channel. Mr. Seiler commented that the $1 per trip fare would be changed to a $3 per day fare. Chairman Dinn thanked the presenters and invited public comment regarding the presentations. He reported public comment related to Discussion Items would occur later in the meeting. Nathan Clark, owner/operator of Captain Clark's Flagship and Gulf Clipper, commented that: his family has operated in the Marina for over fifty years; he understood the City is allowing Danny Duzich to build a dock at Peoples Street T-Head (PST) and to amortize costs from future rent; Mr. Duzich has chosen the most accessible boat slip to walking traffic and most visible PST location; have never in the past had the opportunity to pick a location and that, in answer to fair play on City property, the opportunity to do so should be extended to any interested party, especially those in direct competition with Mr. Duzich; his solution would be to allow operators to bid on highly sought after locations; the Gulf Clipper will also be running $3 all day boat rides; and he would like to have the subject location for the Gulf Clipper. Mr. Davidson responded to questioning that: the lease is currently being negotiated but rent abatement has not been determined; that Mr. Duzich was involved in past fuel dock/sanitary pump out negotiations that did not pan out; over-water leases can be for no longer than five years; the water taxi has been operating from PS-52/53 for approximately one year and previously moored on the L- Head; that width wise, the area is two slips but they pay only for one slip because width is not a consideration for assessed fees; and commercial entities should benefit from the majority of ridership that will be coming from hotels. Mr. Seiler responded to questioning that Mr. Duzich submitted the only response to an RFP and that he was the previous service provider. Clarence Clark commented that as a commercial operator, he was also interested in having the opportunity to select his slip. Water/Shore Advisory Committee Meeting Minutes -3- 05/02/02 Bill Kopecky commented that he has expressed his concerns to Mr. Escobar regarding liquification that can occur with hydraulic fill and which could destroy the support structure of the whole Seawall. Terry Bernal commented Mr. Duzich should be charged for two boat slips and that he should be moved closer to other tour boats and the north side should be for fishing boats. Nathan Clark inquired about Mr. Duzich's only paying for one boat slip and commented that Mr. Duzich may have been paying for rent for a year but the vessel had not been in the PST location that long and that he (Mr. CIark) pays according to the slip length including the area between his vessel and the pilings that extend 25' behind his boat. Mr. Davidson offered clarification that: slip rates are based on length overall of a boat or slip, whichever is greater, and that width is not a consideration for rates; the Marina has historically assessed rates based on length which is the norm in the Marina industry; the subject slip has long been a double loaded slip; the first four PST slips have been empty since the early 1990s and shrimpers are not located in the first four slips for security reasons; Mr. Duzich requested use of what had always been an empty slip; that there is a waiting list so those interested in specific slips can place their names thereon and they will be notified of slip availability; the south side is completely open and can accommodate other vessels; and the north side is currently rented in total. Joe O'Brien commented about public comment having not been allowed with regard to discussion items in the past; that policy can not be changed without public notice; that the Chairman not allowing public comment on agenda items is unacceptable, undemocratic and against the City Council's policy of wanting public input on issues; the Chairman should resign as Committee chair; and that an advisory committee discussing legal issues is out of order especially when the lessee is not allowed to speak in her defense. Julie Duzich, Danny Lyberger, Scott Brackett and Nathan Clark did not respond when called to make public comment. R. L. Hasker commented about his disbelief that Ms. Stubbs was not allowed to speak at the last meeting; that Ms. Stubbs has been fed false information, required to invest $70,000 of her own money to keep her business open, and should be paying only rent for a City-owned facility; that Ms. Stubbs has been treated poorly and her statements ignored even at City Council when she expressed concern about having her livelihood taken away; that the poor treatment has got to end and things started anew in order to be run the right way. Discussion Items and Possible Action Thereto: Bait StandlBait Stand Lease - Upon Chairman Dinn's request, Mr. Pell commented that: the response to the Committee's requests for bait stand lease updates had always been that the matter was in Legal's hands and Staff could not make comment; upon reviewing Water/Shore Advisory Committee Meeting Minutes -4- 05/02/02 the lease and first amendment, his determination was that the current lease went into effect in 08/00 for a minimum 15-year term with an option for two five-year extensions; the lease states the lessee will pay any amount in excess of $150,000 towards the construction of that bait stand (she invested $70,000) and for her investment, she bought a one year lease extension for each $5,000 contribution making the total possible lease term 39 years; the lease requires payment of six percent of gross sales or $1,500 per month minimum as rent for the months of April through November(making monthly rental to be more than $1,500 per month when gross sales exceeded $25,000) - when asked, the Marina Superintendent reported the lessee had not paid rent as per the lease; the lease requires the lessee to provide quarterly sales tax reports to the Marina Superintendent - when asked, the Marina Superintendent reported the quarterly sales tax had not been submitted as per the lease; the lease states failure to provide the quarterly sales tax reports is grounds for termination of the lease; other issues regarding the bait stand lease between the City and the lessee are in the past - the issue remaining is that since 08/00, the lessee has not fulfilled terms of the lease; and the lease states failure to fulfill either of the terms is grounds for lease termination. Mr. Pell continued that the Deputy City Manager's 10/01/01 letter to the lessee demanded that the rent be brought current indicating the way the lessee handled the lease agreement was not fair to the public; the City Attorney's 04/04/02 letter to the lessee's counsel demanded that the rent be brought current and offered an alternative that the City would be willing to entertain a possible buy out of the remaining lease; the City Attorney's most recent letter stated the City had received no response to the 04/04/02 and allowed the lessee ten days to respond or possibly to face legal action. Mr. Pell commented the lessee has had more than ample opportunity but has taken no initiative to fulfill the terms of the lease and the first amendment that she signed. The motion was made by Mr. Pell, seconded by Mr. Anderson, that the Committee recommends to the City Council that they proceed toward termination of the bait stand lease. Mr. Beck objected to the question. Mr. Beck did not respond to Chairman Dinn's asking why the objection. Chairman Dinn opened the floor for the remaining public comment. Chairman Dinn asked if Ms. Stubbs could limit her comments to five minutes. Ms. Stubbs commented that: she attended many meetings waiting to hear someone say what was the problem; that when she specifically asked Mr. Pell what was the problem, there was no response; she feels it is the city and not herself that is the problem; it is sad that she could not speak at all the other meetings especially since the problems have been going on since 1997; and allowing her only five minutes before taking a vote to evict is unfair. Ms. Stubbs read a letter prepared by her attorney, Hal George, addressed to the Committee Chairman and Members stating: he was submitting written public comment because he was unable to address the issue in person; that staff has represented, but it is not true, that Ms. Stubbs is delinquent in rental payments; that the city is in substantial breach of its agreement with Ms. Stubbs; that in a private-commercial venture, a landlord that fails to perform - as has the city in this case -will be liable for substantial damages; that in the public interest, Ms. Stubbs has patiently attempted to resolve matters with the city; that the committee has consistently received only one side of the story; that the partial history presented in the Water/Shore Advisory Committee Meeting Minutes -5- 05/02/02 • handout packet would show that Ms. Stubbs is not delinquent; that for a number of years, the city was unable to find a bait stand operator that could operate within the public interest; that Ms. Stubbs was given a lease, performed in the public interest and for 14 years was an outstanding, even exemplary lessee; that Ms. Stubbs' relationship with the city began to deteriorate when a former Marina Superintendent told her that if she did not take over the fuel facility, she would no longer have a lease with the city (that issue was resolved); that the city kept changing positions during negotiations; that the old building deteriorated to the extent that equipment was damaged, product was lost and the building became almost unusable; that a commercial landlord is responsible in money damages for the condition of that building; that the city eventually signed a lease promising to complete a new bait stand by 02/99 - the city failed to live up to its promise; that the city agreed a second time to complete the building by date certain - the city again failed to complete the building as promised; that the city then forced Ms. Stubbs to move from the temporary location to the permanent Iocation prior to completion of the building; that her obligation to pay rent was to commence upon final completion which was 02/01; that the city failed to complete the electrical work powering the large equipment necessary for the proper operation of a bait stand; that the city first told Ms. Stubbs it was her responsibility to complete the electrical; that Ms. Stubbs obtained three bids and advised the city she could have the work done in three days; the city then reversed its position deciding it was the city's responsibility to finish the electrical and assured Ms. Stubbs it would be done in a timely manner; that the city took until the end of 01/01 to complete the electrical when Ms. Stubbs could have had it completed by Thanksgiving 2000; that the building was not complete until 01/31/02; that the signed agreement with the city specifically provides for amortization of the money Ms. Stubbs provided to help construct the facility which the city would own at the end of the lease term; that in all negotiations, the city represented they would need an additional $40,000 to complete the facility- Ms. Stubbs provided the $40,000 - then the city wanted an additional $30,000 for which they agreed to allow rental abatement so Ms. Stubbs could amortize her private $30,000 investment in a public building; that Ms. Stubbs wants to operate the bait stand in peace; that the latest demand is one in a long series of unreasonable and unconscionable action on the part of the City; and that he requested the committee schedule a workshop session so Ms. Stubbs and her legal representatives could make a full presentation so the committee can hear her side of the factual matters. Ms. Stubbs commented that things should never have gotten to this point and that maybe someday the City would apologize to her. At Chairman Dinn's request, Ms. Stubbs presented handouts to the committee. Ms. Stubbs read her letter to the City stating: her check #1656 in the amount of $18,366.52 was enclosed, constituting payment of rent the city claims due pursuant to Jimmy Bray, City Attorney's letter dated 4/29/02; that she was making the payment only because the city has threatened eviction if payment was not received by 05/08/02; that, as she has previously stated to the city, she does not owe the money and was paying under the threat of eviction which would cost her substantial income and under protest and duress; that she requested to be made aware in writing before 05/08/02 if any other monies were due or if/how she breached any other Iease provision. Ms. Stubbs presented her letter and showed the check (indicating she would not give it until she was given a Water/Shore Advisory Committee Meeting Minutes -6- 05/02/02 receipt) and other paperwork to Mr. Cisneros, Mr. Ondrias and Mr. Davidson. Mr. Ondrias left the meeting to make copies of the check. Ms. Stubbs commented that the committee had been misinformed because she has submitted the quarterly sales tax reports but that over a 14 year tenure no one ever asked for them before; that her lease states she was not supposed to pay rent until the building was completed; and that she was prepared to answer the committee's questions. In response to Dr. Mott's inquiry about correspondence Ms. Stubbs received after 10/00, Ms. Stubbs responded that she didn't have time to read what was in the packet she handed out; that she had paid so much in attorney's fees since 1997 that once she moved into the new building, she stopped paying attorneys; that it was her opinion that city staff saying/writing something, doesn't make it so; that she didn't respond to every letter that in her opinion made ridiculous claims that, if the lease had been read, it would be obvious the letters were unnecessary; that there was probably no correspondence after 10/00; that she worked closely (with Shelly in Engineering - who is no longer with Engineering), presented plans and discussed electrical (amp/model) needs for each machine in the bait stand (presented plans dated 1998) before the building was finished (one of the letters to which she did feel she needed to respond because if they would have checked they would have seen it was there; and that one side of the city doesn't keep the other side informed. Ms. Nicolau asked Ms. Stubbs if she was present during public comment at the last (April) meeting and if she had signed up or stood up to speak during the public comment portion of the meeting. Ms. Stubbs responded that she was present during public comment and that she did not sign up or stand up to speak during the public comment. Ms. Nicolau stated she wanted to make sure that everyone was aware that Ms. Stubbs had the opportunity to speak. Ms. Stubbs answered that she did not know to what she would be responding; that many untrue comments were made and many were made after public comment that occurred at the beginning of the meeting; that she didn't know to what she would be responding or what was going to be discussed at the meeting. Mr. Cisneros responded to questioning that because there was a question regarding whether or not interest charges would be waived or if there were other outstanding issues, he would have to first verify through the Legal Department whether or not Ms. Stubbs payment would bring her account current and that the matter would be cleared up by 05/08/02. Mr. Moody indicated his awareness of what had transpired with regard to the bait stand issue; asked Ms. Stubbs if she had any questions; if she thought it was worth meeting with the city to discuss so all are aware of the signed lease requirements from this point forward and to move forward in a more positive manner; asked if the bait stand/property was okay or if there were other concerns that needed to be addressed. Ms. Stubbs responded that she would like to ask a lot of questions just so the committee could hear the answers; that the bait stand is running fine; that they are happy at/with the bait stand and they work hard and do a good job; that the only negative about the business is the city involvement; that there's a lot wrong within and to the demise of the city marina; that she feels the bait stand has been stagnated and unable to move forward with plans because of constant negativism and threats of eviction for no reason; that she wants to move forward. Mr. Moody suggested that Ms. Stubbs immediately bring issues she has with the city to the committee so issues can be more quickly resolved. Mr. Leyendecker asked when was the first time Ms. Stubbs submitted quarterly sales tax reports; that the bait stand had been an Water/Shore Advisory Committee Meeting Minutes -7- 05/02/02 issue long before the RFP/Landry's was known about; that he could not believe that she had not read the lease or that she was unaware that she was required to submit quarterly sales tax reports. Ms. Stubbs responded that she has always paid sales tax; that the requirement to provide copies of the reports has always been in her lease but she, through the five marina superintendents with whom she has worked over a 14 year period, had until now (her CPA faxed the reports to the City) had never provided the reports to the City; that as her letter states, she doesn't mind providing whatever is requested; and that now that Landry's is involved, asking to buy her contract, that things are not on the up and up. Mr. Beck asked if by accepting Ms. Stubbs check (for what she claimed to be rent abatement), the city is extending the original lease; and if the $40,000 extra doesn't extend the term of her lease. Mr. Cisneros responded the payment was for back rent and that he would need to verify whether or not the payments were current through the first lease amendment. Ms. Nicolau called for the question. Chairman Dinn responded to Mr. Anderson (who requested an opportunity to comment) and Ms. Stubbs (who wanted to ask a question) that they would have to wait because the question had been called. Mr. Pell restated his motion and the motion passed with Mr. Moody in opposition, Dr. Mott abstaining and Mr. Beck objecting to the question. Ms. Stubbs commented that she did not understand why the committee voted to evict since she paid what the city said she owed and because her payment should stop the eviction. Mr. Anderson stressed that Ms. Stubbs and the city set up a meeting at which time they can work through the lease to belay, what appears to have been misunderstandings - on both parts - regarding what is required in order to perform under the lease. The motion was made by Mr. Anderson, seconded by Mr. Moody, that the city makes arrangements with Ms. Stubbs to move forward on reviewing the lease. Discussion was not offered. The motion failed. Mr. Moody commented that his interest was that both parties get together, make things right and move forward; that the lease not be terminated at this time; that if similar issues arise later on, the city should take legal action with regard to lease violation; that issues should be resolved more expeditiously; and that the committee may not have been well informed but that should be taken care of, put behind us and everyone ready to move forward. Mr. Leyendecker commented that by presenting her check, Ms. Stubbs showed willingness but still needed to take the initiative to work with staff to resolve issues before they get to City Council. Dr. Mott commented that she abstained to give Ms. Stubbs the benefit for having paid; that she expects Ms. Stubbs to continue paying monthly and submitting quarterly sales tax reports as required by the signed lease; that anything other than what is required in the signed lease is between attorney's. Water/Shore Advisory Committee Meeting Minutes -8- 05/02/02 Mr. Pell stated a point of order is that it is customary that if you intend to abstain from voting on a subject that you also abstain from discussing the subject. (Dr. Mott later clarified that she had intended to vote; that her decision to abstain was made as a result of actions that occurred after the matter had been discussed.) Mr. Beck stated a point of order is that once an objection has been raised by a member of the committee no further action may be taken on that item until that objection has.been disposed. Jack Gordy asked if the rest of the audience would be allowed to comment on the action item since they were not allowed to comment before the vote. Chairman Dinn apologized and yielded to Mr. Gordy who commented that: Mr. Pell received what the City wanted him to have and not copies of Ms. Stubbs correspondence; that he has told the City Council to believe only one in 100 things the staff tells them and to be sure to check out that one thing; that the committee should themselves have checked things out; it was a shame that the committee voted on something they did not first investigate; that the committee did not take time to read the information Ms. Stubbs provided them in order to ask her questions prior to voting on the issue; and that because they voted on an issue without knowing about it,the entire committee should resign. Terry Bernal commented regarding it being unfair that the shrimpers are given only ten days by which to bring rent current or they are threatened with losing their slip or having their vessels auctioned upon three months delinquency. Director's Report - Mr. Davidson responded to questioning regarding the Stay Aboard Permit going before City Council on 05/14/02 and the City awaiting a reply from the Texas Park & Wildlife Department regarding its submitted design sketch. Dr. Mott indicated she would consult Larry Jones of the City/County Health Department regarding their update sheet indicating 89 being the level above which they perform resampling. Committee Reports:None offered. Current Concerns: The Committee is Soliciting Public Input Related to the Development of a Memorandum of Understanding (MOU)with Landry's Corporation for Marina Improvements. Discussion followed regarding the city council's seeking representation from each advisory board (and four public, at large appointments) to serve on a stakeholders committee charged with dealing with responses regarding marina development; that the Mayor has distributed letters regarding representation; waiting until the June meeting will be too late to make the appointment; and that it would be okay to select a representative at this time since the subject matter has been posted. The motion was made by Mr. Beck, seconded by Dr. Mott, to suspend the rules in order to vote. The motion passed. Water/Shore Advisory Committee Meeting Minutes -9- 05/02/02 Dr. Mott nominated Ms.Nicolau. Mr. Anderson nominated Mr. Pell. The motion was made by Mr. Leyendecker, seconded by Mr. Moody to cease nominations. Ms.Nicolau withdrew her nomination in order to support the selection of Mr.Pell. The motion was made by Mr. Anderson, seconded by Ms. Nicolau, to appoint Mr. Pell as the WSAC representative on the stakeholders committee. The motion passed. Ms. Nicolau requested that the committee discuss forming a tenant council that could discuss/resolve boat, slip rental, etc. issues so internal type problems might be resolved prior to going before the committee. Mr. Beck requested that the committee receive an update regarding the Gulf beaches and Packery Channel. Confirmation: Next Meeting Date-June 6,2002 Adjournment: As there was no further business, the meeting was adjourned at 7:58 p.m. • Peter M. Davidson Marina Superintendent Water/Shore Advisory Committee Meeting Minutes -10- 05/02/02