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HomeMy WebLinkAboutMinutes City Council - 12/26/1974 - Specialw+�ref MINUTES CITY OF CORPUS CHRISTI, TEXAS SPECIAL COUNCIL MEETING December 26,1974 7:00 P. M. PRESENT: Mayor Jason Luby Mayot Pro Tem James T. Acuff Commissioners: Thomas V. Gonzales Rev. Harold T. Branch Gabe Lozano, Sr. City Manager R. Marvin Townsend Executive Assistant City Attorney Michael May : City Secrdtary Bill G. Read City Staff: Richard Mertz, Adm. Assistant; Larry Wenger Chief Planner; Ernest'Briones, Director of Planning & Urgan Development; James K. Lontos, Director of Engineering & Physical Development; Gerald Smith, Chief Engineer; Joe Pierce, Paving Coordinator; and Ron Stubing, Neighborhood Improvement. Mayor Jason Luby called the meeting to order in the Ella Barnes Junior High School. The Invocation was given by Commissioner Branch. City Secretary Bill G. Read called the rollof those in attendance. City Manager Townsend explained the purpose of the meeting was to hold a public hearing on assessments for the Austin School Area Street Improvements, Unit II, to allow those interested property owners an opportunity to express 'themselves regarding the specifications of the project and to make comments as to the assessments levied against their individual properties which will provide a framework for the assessments. He explained that the hearing is a result of peti- tions which have been circulated and filed by property owners abutting the streets proposed to be paved, and which were included in the 1972 Bond Election from which the City's portion of the cost will be paid. He stated the Director of Engineering and Pnysical Development will present the plans and specifications, and that Executive Assistant City Attorney Michael May will conduct the hearing. Mr.'May stated the purpose of the meeting is to comply with the statutes regarding paving assessments; that testimony will be heard from the Director of Engineering and. Physical Development, and evaluation testimony from a real estate appraiser to substantiate the assessments which appear on the assessment roll, and that this hearing is to form a basis on which the Council, acting as a legislative body, would determine or establish the assessments on the abutting properties. Director of Engineering and Physical Development James K. Lontos was interrogated as to his occupation, time of residence in the City, and formal qualifications and familiarity with the subject project. He presented plans and specifications, explained the nature and extent of the proposed improvements, and pointed out the location on the map the streets involved as follows: (1) Vera Cruz, from Baldwin Boulevard to Lou; (2) Torreon, from Baldwin to Lou; (3) Cortez, a Minutes Special Council Meeting December 26, 1974 Page 2 from Baldwin to Lou; (4) Havana, from Pine to Agnes; (5) Balboa, from Baldwin to Agnes; (6) Pueblo, from Pine to Agnes; (7) Shawnee, from Baldwin to Agnes; (8) Hiawatha, from Chippewa to Agnes; (9) Virginia, from Baldwin to Agnes; (10) Mohawk, from Baldwin to Agnes; (11) Francesca, from Ruth to Agnes; (12) Tampico, from Balboa to Galvan; (13) Galvan (Juanita), from Balboa to Cortez; (14) Pine, from Hiawatha to Cortez; (15) Lou, from Virginia to Airport; (16) Huron, from Hiawatha to Virginia; and (17) Chippewa, from Pueblo to Virginia. He explained that the project is all residential type street improvements and includes installation of 6" standard curb and gutter section; the installation of pavement of 28 feet measured from back of curbs; € inches of 4% lime stabilized soil base and 2" Hot -Mix Asphalt surface; installation of sidewalks varying in width from four feet to five feet and 4" thick reinforced concrete, standard reinforced concrete driveways where shown on the plans or where the owners may request; and storm sewers and appurtenances are proposed to be con- structed to permit proper drainage of the completed streets. He explained that the assessment rates have been determined in accordance with the City's assessment policy and by using the unit prices taken fromthe low bid submitted by Burtex Constructors, Inc. He stated the total contract price is $796,375.13, total preliminary assess- ment, $403,780.62, and total City portion $392,594.51. He explained that the standard rate of $4.75 per linear foot has been assessed for church, school, or strictly residential property. He pointed out on the map examples of irregular lots, corner lots and interior lots, and explained the calculated assessment rates. Mr. Lontos also explained the method of payment as prescribed by ordinance and stated that no payments are due until the project is completed. He explained that the preliminary assessment roll as submitted to the Council, reflects the changes recommended by the City's real estate appraiser, and that these changes are concurred in by the staff. Mr. Lontos stated that two letters had been received in protest of the proposed assessments, one from Mr. David M. Coover, pertaining to Lot 59, Block 3, San Pedro Addition owned by Corpus Investments, Inc., protesting the assessments on the basis that the proposed improvements would be of no benefit to this lot due to a lien on the property by the City which has not been paid and does not meet City standards to build upon, therefore, the proposed assessments for paving or sidewalk improvements could not possibly enhance the property's value. He reported that a letter Minutes Special Council Meeting December 26, 1974 Page 3 had been received from Mr. Scott T. Cook with reference to the assessments against Marston Rental Service and Westside Lumber Company properties, protesting the installation of a five foot wide sidewalk on the basis there is not sufficient residential uses in this area, the sidewalk will be too close to their building creating a potential hazard. The installation of the proposed curb, gutter and paving of Francesca Street is not protested but would improve the use of the property along both sides of the street for the entire section proposed to be paved. Mr. Lontos stated that Mr. Coover also objected to the hearing being scheduled for December 26. Mr. Harold Carr testified as to his identity as a real estate appraiser, time of residence in the City, occupation, experience as an appraiser of all types of real estate, his present occupation, and familiarity with the subject project. He stated he had examined each parcel of land included in this project and in his opinion, all properties appearing on the preliminary assessment roll would be enhanced in value as a result of the improvements at least to the extent of the assessments as corrected on the preliminary assessment roll which reflects his recommendations for reductions on irregular shaped lots. Mayor Luby called for comments and questions from the audience and the following persons appeared: Mr. Raul E. Soliz, Lot 23, Block 7, Meadow Park Addition, inquired as to reasons for varied rates applied to different properties. Mr. Lontos explained that property zoned "I-2" and "A-2" is assessed the full rate instead of the residential rate assessed on property zoned or used for single -family. City Manager Townsend stated it would be his recommendation to consider reducing the assessments on all those properties which are within the "A-2" zoned areas recognizing that they are being used for residential purposes exclusively. Mr. Charles Bolden inquired as to the government's role in paving projects such as this, and questioned how the assessments are built into the program. He stated that at the time Hillcrest Addition was improved through the Code Enforcement Program, people were told that these streets would be financed 100% through federal funds, and later they were assessed for the improvements. He commented that he does not think the federal government knows that the City is assess3ng,these people. City Manager Townsend explained that Hillcrest streets were paved under the Code Enforcement Program and was not a 100% federally funded project; that the subject 41/1 111/1 Minutes Special Council Meeting December 26, 1974 Page 4 project does not involve any federal money but is the last major project included in the 1970-72 bond programs and brought about by voluntary petitions from the property owners. Mrs. Francisco Vigil, 330 Hiawatha, inquired whether or not the taxes on the properties being improved would be increased as a result of the improvements. City Manager Townsend explained that the ad valorem taxes are based on the market value of the property and sales of property in the area. He stated the property should be rendered for the amount the individual feels it could be sold, and if it is taxed more than 60 percent of that amount, an appeal should be made to the Eaualization Board. Mr. Casciano Gonzales, 438 Hiawatha, inquired if the improvements would improve an existing drainage problem at Baldwin and Hiawatha. He stated there is a lake of water at this location following every rain. Mr. Gonzales also inquired if there would be some restriction to prevent cars from parking on the new sidewalks. Mr. Lentos explained that there are no storm sewers in the plans at this particular location, but this situation would be investigated. Mr. Townsend stated that parking cars on sidewalks is against the law and should be reported. Various questions were raised by unidentified persons in the audience relative to the following: method provided for paying the assessments; what happens to the "profit" the City makes on the interest paid on time payments; why the revenue sharing money is not being used for street improvement projects such as this and Where is the government money being spent; why has Carver Street not been included in any paving project; and why had Flores Street not been completed as provided for in a bond fund program. It was suggested that time payments be staggered according to the ability of the property owner to pay. City Manager Townsend explained in detail how revenue sharing money is being utilized, and responded to all other questions raised. He explained that the money set aside for improvement of Flores street is still available for that purpose, but the obligation of a property ownerto•establish the street and pay one- half the cost, has not at this time become a reality. Mr. Townsend also explained that the interest collected from time payments on street assessments is revolving and goes toward the cost of improving other streets in the City. He further explained that all assessments must be made equal with no discrimination as is provided by law., Mr. Lucio Garcia of the Zavala Neighborhood Center spoke in favor of the paving program. On another matter, he criticized any action to block federal funds proposed to temporarily finance costs of the NIP Program, stating he hoped the Mayor Minutes Special Council Meeting December 26, 1974 - Page 5 would reconsider this matter. Mr. Briones translated all questions and answers in Spanish for the benefit of the Spanish-speaking audience. No one else appeared to speak for or against the assessments. Motion by Acuff, seconded by Branch and passed, that the'hearing be closed. Mayor Luby opened the meeting to discussion of the proposed application for funding under the new Community Development Act. City Manager Townsend explained that all programs have been lumped into one program, and the City will receive during 1974 an average of what this City has received in the last five years, and the purpose of this meeting and the meetings which have been held in the various communities and the Planning Commission is to receive citizen input as to how this money should be spent. Mr. Ernest Briones, Planning and Urban Development Director, presented a summary of the new Community Development concept approved by Congress. He translated his comments in Spanish for the benefit of the Spanish speaking audience. The summary included plans for development of the application, the conclusions reached from various neighborhood meetings held over the past several weeks, and housing assistance plan and budget recommendations for the first-year program. He explained that the system of block grants or revenue sharing has been under discussion for several years and discussions of different types of legislation that would eliminate the need for categorical grants and make provisions for municipalities or local governments to receive funds in block grants, and the Community Development Act was the end result. He explained that the plan consolidates Several categorical programs that previously existed, including open space, water and sewer grants, urban renewal, model cities, neighborhood facilities and demolition programs, and this consolidation into block grants gives the cities an opportunity to develop their own programs according to locally conceived priorities and to request funds for programs they feel have a high priority in the community. Mr. Briones Stated that as a result of meetings held thus far, it appears that the general concensus is that the first year of Community Development Block Grant funds be spent (1) housing rehabilitation in poor areas; (2) street improvements; and (3) multipurpose neighborhood facilities. He pointed out on a map the low income areas which are under Consideration for use of the funds and reviewed the Planning Commission's recommendations forwarded to the Council following their meeting of December 17 which were: (1) that a total of $1,405,000 be earmarked for street and houaing improvements, two-thirds be allocated for housing improvements alone and that the remaining one-third' be allocated for improvements to major neighborhood arteries •Minutes Special Council Meeting December 26, 1974 Page 6 .(containing such community facilities as churches, schools and bus routes) and staffing for administration of the program; and further, that the subsequent allocations remain in place according to the staff proposal; (2) that the staff be authorized to prepare specific guidelines for grants to the indigent, elderly, disabled, etc., and that no grants or loans be made to landlords owning more than two rental units; and (3) expenditure of federal funds for continuing programs such as the NIP administration,and recommended that the Council commence exploring now the possibility of the City providing its own resources to continue such programs effective thenext budget year. City Manager Townsend commented that apparently the primary concern of persons in neighborhoods is that three percent loans be, made available for housing improvements. He explained that there are major problems as to the mechanics under Texas Law, and this has not been worked out as yet. He stated a recommenda- tion will be presented within the next two weeks as to a system that might be possible under Texas Laws.He explained that the interest will be determined by income levels of families involved; that loans would be allowed where they are most needed and it 1s thought that funds will be available for both the Washington and Carver area. He further explained that these are not grants but loans and will have to be paid back, and as they are paid back, they are revolving and will go into more loans. A question and answer period followed to which Mr. Briones and City Manager Townsend responded. Various questions were posed such as: will these be grants or loans; will there be special exceptions for elderly persons on fixed incomes who cannot afford to pay back a loan; will this program be connected in any way with Community Action Agency; and will the priorities deal with needy individuals who cannot pay back a loan. Mr. Charles Bolden complained that the neighborhoods had been asked to express themselves as to what they felt the priorities should be and it stated it had been Clearly expressed that they want grants and not loans. He commented that the plan presented by Mr. Briones is entirely different and they feel their time had been wanted. Mr. Tony Bonilla stated that numerous citizens appeared at the Planning Commission meeting, and most expressed the desire for housing improvements as the top priority including improvements in Carver area, street improvements, and multi-purpose centered and that it was recommended that two-thirds "should be loans but they had specifically mentioned that some grants be included. He suggested that • Minutes Special Council Meeting December 26, 1974 Page 7 the staff work out a criteria of who should receive these grants. Mr. Bonilla pointed out hardship cases of persons wholly dependent on social security stating thereare many in that predicament. Mr. Bonilla stated that the recommendations of the Planning Commiseion had been based on citizen input and from the staff and most of the citizen input supported the two-thirds of the total first year funding for housing. He further stated it ie not logical to expect elderly persons who awn their homes and have no debts to assume responsibility of improving their streets and pay for the assessments, and for that reason, he feels there should be specific guidelines for grants to the indigent, elderly, disabled, and outright grants for those who qualify in these categoriee. A representative of the Molina Neighborhood Council stated this group is on record in support of the housing improvements as first priority, streets as second priority, and multiple purpose centers as third. Mr. Lucio Garcia, representing the Zavala Neighborhood Center, stated this group recommended that 100 percent of the first year funding be used for housing & street improvements second, and multi-purpose as third. He stated they favored loans at 3 percent and some grants to the people who are in need of them. He inquired if their requests mould be honored or would there just be promises, stating that Whet Mr. Briones presented is not What the people have indicated they want. Mr. Garcia questioned Mayor Luby's vote against the City Manager's recom- mendation to amend the existing Neighborhood Improvement Program contract by ordinance seeking use of federal funds to temporarily finance administrative costs of Neighborhood Improvement Program employees. Mayor Luby explained that he did not have prior information on this matter before it was presented and he voted against it because he felt this money should have been used for grants or loans. Mr. Henry Garcia, representative of the Molina Neighborhood Center, complained of the repetitious presentations of the City staff of the Community Development plan, stating it appeared they were pressing for what they want and not what the people have indicated they want. He stated these minorities represent approximately 50 percent of people in the City and they should have a definite voice in this program. Mr. Garcia commented that one important objective has been left out of the program, and suggested that a plan for teaching minority groups all the things that go into the economic process be included which would improve the environment and provide economic opportunity to persona of moderate income. Minutes Special Council Meeting December 26, 1974 Page 8 City Manager Townsend stated he agreed with Mr. Garcia's comments and emphasized the importance of programs for development of skills in minority groups. Re explained that this had been one of the weaknesses in the entire program, and commented that the whole concept of Community Development should go hand in hand with the problems of housing and street improvements. No one else appeared to speak relative to the Community Development Program. Motion by Acuff, seconded by Branch and passed, that Commissioners Stark and Ricardo Gonzalez be excused for just cause. Motion by Acuff, seconded by Branch and passed, that the Special Meeting be adjourned at 10:10 p.m., December 26, 1974. I, JASON LUBY, Mayor of the City of Corpus Christi, Texas, certify that the foregoing minutes, same being for the period December 11, 1974 to December 26, 1974, inclusive, and having been previously approved by Council action, are by me hereby approved. JASON'LUBY, Mayor City of Corpus Christi, Texas