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HomeMy WebLinkAboutMinutes Watershore And Beach Advisory Committee - 04/04/2002 fora, ta 3a. Minutes �aw / Vit, Regular Meeting / , c; .y 5f,o, Water/Shore Advisory Committee \ G.( Thursday,April 4,2002 Members Present: Tom Anderson,Frank Beck,Alan Dinn (Chairman), Dr-Osar 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, Elizabeth Hundley, Assistant City Attorney, 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 5:32 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. Garcia, seconded by Mr. Anderson, to approve the March 7, 2002 Minutes as presented. The motion passed unanimously. Presentations and/or Public Comment: Mr. Davidson responded to questioning that those best prepared to provide updates regarding Corpus Christi Beach, Padre Island annexation,Packery Channel, Columbus Ships, University Beach and the Seawall Project had prior commitments and would make their presentations at the next regularly scheduled meeting. Sheldon Schroeder (handout) expressed concern that the Landry's proposal lacks a plan for how it can be accomplished while also maintaining an existing marina and the needs of the City, the Marina and Marina tenants; that it appears most details will be worked out between the proposed developer and City Staff in closed session with little opportunity for public input; and about whether the.T-Heads can support a large scale venue in addition to marina services. Jerry Vaughn commented the Committee should go on record as to whether or not they support the project and, if not, make a motion to move the project to Corpus Christi Beach. Andy Ficken commented that Landry's increased slip rates.in Kemah so many can not afford them; there are parking problems; and the Committee needs to decide and advise City Council as to whether or not they support the project. Discussion Items: Bait Stand - An agenda packet was provided to Jane Stubbs upon her request. Ms. Stubbs asked whether discussion of the issue could be delayed pending the arrival of her attorney, Hal George. Chairman Dinn responded that public comment was ceased. Mr. Davidson read the bait stand history (as presented in the agenda packet); reported the October 1, 2001 letter from the Deputy City Manager to Ms. Stubbs (in the agenda packet) discussed bait stand payments made to the City; that a second lease amendment had been set aside and never signed by either party; and that the various payment breakdowns (in the agenda packet) depicted bait stand payments from August SCANNED Water/Shore Advisory Committee Meeting Minutes -1- 04/04/02 t � 13, 2000 through March 15, 2002. Mr. Davidson responded to questioning that: (1) the payment breakdown indicated the minimum $1,500 payment had not been paid, no rent was paid from August 2000 until January 2001 and partial payments were made from January 2001 through February 2002; and (2) the main lease.commencing April 19, 1998 approved by the City set monthly rental payments and established a lower percentage payment for winter months and higher percentage payment for summer months. Mr. Pell commented and Mr. Davidson agreed that the lease states the lessee is to pay the city each month six percent of the preceding calendar months' gross receipts or a monthly minimum of$1,500,whichever is greater required from April through November, and for the months of December through March, to pay six percent of the preceding calendar months' gross receipts. Mr. Davidson responded to questioning that Ms. Stubbs had not paid in accordance with the stated lease terms. Chairman Dinn responded to Ms. Stubbs that public comment had ceased. Joe O'Brien interjected that the audience should be allowed to participate in the discussion and that Ms. Stubbs should be allowed to speak about an issue that involved her livelihood. Chairman Dinn assured Mr. O'Brien that the Committee was not railroading the issue and that Ms. Stubbs would have another opportunity to speak at the next meeting. Mr. Davidson responded to questioning that Ms. Stubbs had not provided copies of quarterly sales tax reports of all sales at the leased premises as called for in the lease. Mr. Pell remarked that the lease indicates that failure to provide said copies is cause to terminate the lease and that rent has not been paid according to terms in the main lease that has been signed and ratified by both parties and • the City Council. Ms. Hundley reported that discussions regarding the lease(s)have been on going and are currently being negotiated with Mr. George, Ms. Stubbs' attorney. Mr. Beckcommented that the City breached the contract (missed construction deadlines i.e. for thetemporary facility); that rent was not required on the temporary facility until the new bait stand was complete(January 2001); that Ms. Stubbs' payments to the City began in February 2001 ($596.38); the second proposed lease amendment allowed Ms. Stubbs to amortize$30,000 over a five or six.year period at a set interest rate and to deduct that from the monthly rent; that monies were held by the City under a Letter of Credit; the City accepted the Letter of Credit and took the money which indicated their_okay with the deal (or they shouldn't have taken,the money); and electrical work was incomplete when the City issued the Certificate of Occupancy(August 2000). Mr. Pell commented that the first lease amendment signed by Ms. Stubbs indicates.that the orientation of the structure, layout, mechanical, electrical, plumbing rough-in and built-ins had been coordinated with the lessee and her equipment suppliers. Mr. Beck responded that the issues had been coordinated but had not been done by the City's contractor. Mr. Pell commented and Mr. Beck agreed that the $30,000 addressed in the non-ratified second amendment says the City will fund not to exceed$150,000 of the construction costs based on the bid pricefor the bait"stand building and that the lessee will be responsible for any amount over $150,000. Mr.Pell asked how it was possible to give back $30,000 when the signed, first amendment indicates Ms. Stubbs' will pay anything over $150,000. Mr. Beck responded that he did not know because the City wrote the amendment. Mr. Pell stated the point would be moot because the second amendment had not been signed by Ms. Stubbs, the City nor ratified by City Council. Mr. Beck commented that the City had no business taking the money. Mr. Pell stated the agreement was anything over $150,000 and that Water/Shore Advisory Committee Meeting Minutes -2-- 04/04/02 there was no cap on Ms. Stubbs' contribution. Mr. Beck stated that when the City went to Ms. Stubbs with the bid asking what she wanted to do, she said she would put in the extra money if the City would take an amendment allowing her to amortize the extra money from her rent. Mr. Pell responded the second amendment was never signed. Mr. Beck responded that in order to move forward, after all the City's delays, the City took the money. Mr. Pell stated the second lease was not ratified and that discussions regarding the issue didn't matter. Mr. Beck asked if Mr. Pell was saying the City Attorney/City Staff has zero credibility when offering someone to do something. Mr. Pell declined comment indicating that he had analyzed the lease and first amendment that indicates Ms. Stubbs has not paid rent and had not provided sales tax reports as required. Mr. Beck stated the City hasn't performed either. Discussion followed. The motion was made by Mr. Pell, seconded by Mr. Anderson, that the Committee recommend to City Council termination of the L-Head Bait Stand lease based on the facts that the rent has not been paid and quarterly sales tax reports had not been submitted as agreed. Ms. Hundley interjected that action can not be taken on discussion items; that it can be scheduled for action at the next meeting. Ms. Stubbs requested an opportunity to make comments regarding the discussion. Mr. Beck stated the Committee has always made motions and taken votes on Discussion Items. Mr. Anderson asked for some elaboration on the action item versus discussion item matter. Ms. Hundley explained that when an item is scheduled for discussion, the public doesn't have notice that action can be taken on the discussion item. Mr. Pell withdrew his motion and Mr. Anderson withdrew his second. Discussion followed on rewording the agenda to allow the Committee to vote (discussion/action items). Mr. Cisneros stated the Committee has a responsibility for consideration and recommendation of issues moved forward to the City Council and that upon review of the Committee's recommendation, it is the City Council's decision as to how to proceed. Mr. Beck commented that the second lease amendment was signed by the City Attorney. Mr. Pell said until both parties have signed, the document is not worth the paper it is written on. Marina R.F.P. - Chairman Dinn introduced the discussion item for which the Committee had not decided whether or not to support. Discussion followed regarding not being able to take action at this time; public comment being allowed with regard to discussion items in the past; and maintaining a point of order addressing matters at the appropriate point on the agenda. Mr. Beck departed. Mr. Anderson and Mr. Leyendecker spoke in favor of moving issues regarding the R.F.P. forward. Mr. Pell commented the City Council would be addressing the MOU at their April 23, 2002 meeting. Mr. Davidson commented the City issues/concerns have not yet been addressed; Staff is asking for City Council's permission to discuss items with whomever the Council selects. Mr. Noe commented that things are currently in the proposal stage; the next step (working out mutual arrangements)is the level of commitment that requires Landry's to begin spending money in their efforts to address details derived from input from interested parties or to withdraw. Mr. Cisneros reported the City Council has three steps to perform: (1) consideration and approval (decide with whom to negotiate); (2) follow-up (begin work on the MOU-which will come back before the Committee as part of the review process) and (3) negotiations (lease document details - which would also come back before the Water/Shore Advisory Committee Meeting Minutes -3- 04/04/02 Committee). Mr. Noe responded to questioning that City Staff will ensure that all expressed concerns and/or interests will be addressed and that the Committee will be involved. Discussion followed regarding how to proceed; what is the level of acceptance; the City having been provided detailed financial information regarding all three proposers through an outside consultant; and holding a special called meeting (to address specifically what the City Council will be considering). Chairman Dinn stated he and Mr. Davidson would determine and advise the Committee of the time and date for a special called meeting. Director's Report - Mr. Cisneros and/or Mr. Davidson reported on or responded to questioning regarding: (1) meeting with Andy Goldbloom of the Texas Parks & Wildlife Department regarding a floating boater facility; (2) the Smithsonian Environment Research Center conducting a three-month study [need to request report on their findings]; (3) the possibility of rescheduling the 2002 Powerboat Races from June to August; (4) the water quality report; and (5) the revised stay aboard permit issue being prepared for City Council consideration. Dr. Mott will report back to the Committee regarding her discussion with Larry Jones concerning readings indicated on the Health Department's water quality reports. Committee Reports: None offered. Current Concerns: Discussion followed regarding the need to modify wording for discussion and possible action items and adjusting the position for public comment on future agendas. Mr. Cisneros stated public comment is typically for items not on the agenda; that discussions are entertained with possible public comments before a vote is taken. Discussion followed and Ms. Brunner was asked to check on past occurrences of opportunities for public comment. Request for Information/Agenda Items: None offered. Confirmation: Next Meeting-May 2, 2002 Adjournment: As there was no further business, the meeting was adjourned at 6:47 p.m. Peter M. avidson Marina Superintendent Water/Shore Advisory Committee Meeting Minutes -4- 04/04/02