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HomeMy WebLinkAboutMinutes City Council - 07/20/1983MINUTES CITY OF CORPUS CHRISTI, TEXAS REGULAR COUNCIL MEETING JULY 20, 1983 2:00 P.M. PRESENT Mayor Luther Jones Mayor Pro Tem Betty Turner Council Members Bob Gulley Herbert Hawkins Dr. Charles Kennedy Cliff Zarsky ABSENT Council Member Jack K. Dumphy City Manager Edward Martin City Attorney J. Bruce Aycock City Secretary Bill G. Read Mayor Luther Jones called the meeting to order in the Council Chamber of City Hall. The invocation was given by Council Member Herbert Hawkins in the absence of the invited minister, following which the Pledge of Allegiance to the Flag of the United States was led by Council Member Zarsky. City Secretary Bill G. Read called the roll of required Charter Officers and verified that the necessary quorum was present to conduct a legally con- stituted meeting. A motion was made by Mayor Pro Tem Turner that the minutes of the Special Council Meeting of July 6, 1983 and the Regular Council Meeting of July 13, 1983 be approved as presented; seconded by Council Member Zarsky; and passed unanimously. Mayor Jones then presented to the following employees certificates of completion of the Supervisory Development Program of the Texas A & M Engi- neering Extension Services six -part series on Supervisory Management: 1E919 1§84 Minutes Regular Council Meeting July 20, 1983 Page 2 NAME Jose Martinez Ted R. Stokes Jesse 0. Aranda Cecilia M. Orona Jesse Vielma Ann Wing Earmeane Mae Brown Robert N. Keffer Louis Hoelscher Lona Gericke Herbert Canales Clifford Beaber Wayne R. Cockroft Diego Rivera Frank Sacky Robert Bailey Richard Fuentes Hipolito Saenz Raymond Thomas Gordon Means Ignacio Solis TITLE DEPARTMENT/DIVISION Senior Street Foreman Marina Supervisor Property Advisor II Center Supervisor 11 Wastewater Gen. System Lab Tech. AIC Housing Counselor Supv. Plant Supervisor 1 Laboratory Tech. AIC Librarian I Librarian III Maintenance Mechanic Foreman Water Distribution Supt. Water System Foreman Senior Engineer Gas Pressure Foreman Meter Reader Sanitation Foreman Sr. Gas System Foreman Wastewater System Foreman Custodial Supervisor Street Marina NID Sr. Comm. Services Wastewater Water NID Wastewater Water Library Library Wastewater Water Water Gas Gas Public Utilities Sanitation Gas Wastewater Convention Center Certificates of completion of the Texas A & M Administrative Development Series for middle and upper level management personnel: NAME Cefe Valenzuela Anita Garza TITLE Sanitation Superintendent Municipal Court Clerk DEPARTMENT/DIVISION Sanitation Municipal Court Mayor Jones then administered oaths to the following new appointees to Boards and Commissions: Mr. Javier Chapa, Planning Commission; Dr. Colleen Benson, Animal Control Advisory Board; and Mrs. Helen Bechtel, Citizens Advisory Health and Welfare Board. Mayor Jones called for confirmation of Board and Committee appointments on the following appointments: Appointment of additional alternates to the Coastal Send Council of Governments. It is recommended that Tom Basile, Leah Olivarri and Alicia Perez be so appointed. A motion was made by Mayor Pro Tem Turner to confirm the foregoing appointments, seconded by Council Member Gulley and passed unanimously. * * * * * * * * * * Mayor Jones called for consideration of motions from the Consent Agenda on the following items: Minutes Regular Council Meeting July 20, 1983 Page 3 1. Twelve months supply agreement for approximately 47,193 feet of sewer pipe and 6,676 related fittings to be used by Wastewater Services be approved based on low bid by McAllen Pipe & Supply, Corpus Christi, for $100,346.29. Three bid invitations were issued and two bids were re- ceived. Prices have increased an average of 8% since the previous con- tract of June, 1982. *2. Twelve months supply agreement for uniforms for the Police and Airport Security be approved for Cotheran's Uniform Center, Corpus Christi, for the estimated total of $51,612.07, based on low bid meeting specifications. The low bidder was rejected because the samples submitted were of lighter weight and inferior quality than specifications required. 3. Bids be received August 9, 1983 for a twelve months supply agreement for liquid chlorine in railroad tank cars for the Water Treatment Plants. Estimated expenditure is $40,000. 4. Bids be received August 9, 1983 for twelve months supply agreements for captive General Electric and Motorola radio repair parts and accessories for Radio Maintenance. Estimated annual expenditure: GE=$60,000; Motorola=$15,000. 5. Bids be received on August 8, 1983 for the sale of Lots 9, 10, Block 5, Nueces Bay Heights Addition (50'x150') located at 2826 Minton Street. This property was acquired by the City at a Sheriff's Delinquent Tax Sale in 1980. 6. Plans and specifications for the Furman School Area Street Improvements, Phase I, project he approved and bids be received on August 17, 1983. This 8th Year Community Development Block Grant project provides for the reconstruction of portions of Alameda, 10th, Buford, Hancock, Coleman, Morris, Park, Mary and Marguerite Streets in the area surrounding Furman School. In addition to street reconstruction, new water lines will be installed in most of the streets in the project. 7. Plans and specifications for construction of the Connection of Surfside Boulevard to Timon Boulevard be approved and bids be received on Au- gust 17, 1983. The proposed improvements are in accordance with Corpus Christi Beach Plan; will provide better access to the southern portion of Corpus Christi Beach by eliminating the sharp curve at Surfside and Timon at Elm Street. This project was included in the 7th and 8th Year Community Development Block Grant Program and the 1982 Bond Program. 8. An expenditure of $13,606 be approved for Municipal Court for mainte- nance, equipment and reference law materials. 9. The Prudential Insurance Company be awarded the Administrative Services Only contract for claims administration for the City's self-funded employees Group Medical and Life Insurance Program effective August 1, 1983 for a period of approximately six months. Further, the City advertise to re- ceive proposals for this program by the close of business October 24, 1983. * Withdrawn - See page 4. Minutes Regular Council Meeting July 20, 1983 Page 4 10. Setting a public hearing for August 3, 1983, at City Hall Council Chambers at 2:00 p.m. and for August 4, 1983 in an open area at 4:30 p.m. east of the intersection of Windward Drive and South Barthlomew Avenue for the annexation of a 1.8 acre tract recorded as Padre Island -Corpus Christi, Section A, Block 45, Lot 1A. 11. Setting a public hearing for August 3, 1983 at City Hall Council Chambers at 2:00 p.rn. and for August 4, 1983 in an open area at 5:30 p.m. west of Everhart Road, south of Silver Ridge Road for the annexation of 75.355 acres out of Lots 2 and 3, Section 19, Bohemian Colony Lands, being platted as The Lakes, Units 1 and 4. City Manager Martin stated that he would like to withdraw item 2 for one week. There were no comments from the Council or members of the audience on these items. A motion was made by Mayor Pro Tem Turner that items 1 through 11, with the exception of item 2 which was withdrawn, be approved, seconded by Council Member Zarsky and passed by the following vote: Jones, Turner, Gulley, Kennedy and Zarsky voting "aye"; Dumphy and Hawkins "absent". City Manager Martin reminded the Council that for the 30 days prior to the election of August 13, five affirmative votes will be required to approve any appropriation of funds, zoning changes, etc. Council Member Kennedy stated that he would like to change his vote on item 7 because of a possible conflict of interest. He then stated that he ab- stained on item 7. * * * * * * * * * * Mayor Jones called for consideration of the consent ordinances and ordi- nances from previous meetings on items 12 through 25. *Council Member Herbert Hawkins arrived at the meeting at 2:40 p.m. There were rio comments from the audience on the ordinances; City Secre- tary Read polled the Council for their votes; and the following ordinances were passed: 12. ORDINANCE NO. 17715 CLOSING AND ABANDONING THE 5 FOOT WIDE UTILITY EASEMENT AT THE REAR OF LOTS 1 THRCUCH 14, AND THE PORTION OF THE 5 FOOT WIDE UTILITY EASEMENT NCT PREVIOUSLY CLOSED BY ORDINANCE NO. 17524 AT THE REAR OF LOT 15, BLOCK 17, LAGUNA VISTA SHORES SUBDIVISION; PROVIDING FOR REPLATTING; AND DECLARING AN EMERGENCY. Minutes Regular Council Meeting July 20, 1983 Page 5 The Charter Rule was suspended and the foregoing ordinance passed by the following vete: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent". 13. ORDINANCE NO. 17716 CLOSING AND ABANDONING A PORTION OF SOUTH UPPER BROADWAY SUB- JECT TO COMPLIANCE BY ABUTTING LAND OWNERS WITH EXPRESS COVE- NANTS AND CONDITIONS; PROVIDING FOR REVERTER ON BREACH OF CON- DITIONS; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent". 14. ORDINANCE NO. 17717 APPROPRIATING $143,000 FOR CLEAN-UP OF PUBLIC AND PRIVATE PROP- ERTIES PROJECT, VOLUNTARY DEMOLITION PROGRAM, AND ADMINIS- TRATION OF THE COMMUNITY DEVELOPMENT BLOCK GRANT SUPPLEMENTAL APPROPRIATION PROJECTS; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent". 15. ORDINANCE NO. 17718 APPROPRIATING $30,000 FOR COMPLETION OF EXHIBIT SPACE IN THE NORTH WING, FOR REIMBURSEMENT TO THE CORPUS CHRISTI MUSEUM BUDGET TO PROVIDE FOR CONTINUATION OF THE TEMPORARY ASSOCIATE CURATOR POSITION, AND TO COMPLETE ILLUSTRATIVE ART WORK IN EXHIBITS AND EXHIBIT AREA; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent". 16. ORDINANCE NO. 17719 APPROPRIATING $40,850 FOR INSTALLATION OF NEW CABLE AND ELEC- TRICAL FEED TO THE AIRPORT TERMINAL BY CENTRAL POWER & LIGHT COMPANY; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent". 17. ORDINANCE NO. 17720 AUTHORIZING THE CITY MANAGER TO RENDER PAYMENT NOT TO EXCEED $65,000 TO SAA -81, JOINT VENTURE, SITTERLE AND CO., MANAGING Minutes Regular Council Meeting July 20, 1983 Page 6 PARTNERS, FOR CITY PARTICIPATION IN PARK PAVING IMPROVEMENTS ALONG THE FRONT OF 100 SOUTH PADRE PARKS; APPROPRIATING $65,000 FCR THIS AGREEMENT; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vete: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent". 18. FIRST READING CONSENTING TO THE SUBLEASE BY CHARLES N. RAYBURN TO OMNIFLIGHT OFFSHORE, INC. OF THE 0.918 ACRE SITE OCCUPIED BY DOT HELICOPTER AT CORPUS CHRISTI INTERNATIONAL AIRPORT UNTIL JULY 13, 1990, CON- DITIONED UPON PAYMENT OF OUTSTANDING TAXES, GROUND RENTALS, AND FUEL FLOWAGE FEES, AND FURTHER CONDITIONED UPON DEVELOPMENT OF REMAINING 2.570 ACRES OF THE RAYBURN LEASE ASSIGNMENT, AND OTHER CONDITIONS ALL AS SET FORTH IN THE "CONSENT OF CITY", A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, MARKED EXHIBIT "1". The foregoing ordinance was read for the first time and passed to its second reading by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent". 19. FIRST READING AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE A CON- TRACT BETWEEN THE CITY OF CORPUS CHRISTI AND JACK RYAN FOR THE ANNEXATION CF APPROXIMATELY 41.83 ACRES OF LAND KNOWN AS WILLCIAICK ADDITION NUECES COUNTY, TEXAS; FINDING ALL OF SAID LAND TO LIE ENTIRELY WITHIN THE EXTRATERRITORIAL JURISDICTION OF THE CITY OF CORPUS CHRISTI, TEXAS, ADJOINING, CONTIGUOUS, AND ADJA- CENT THERETO; PROVIDING FOR SEVERABILITY. The foregoing ordinance was read for the first time and passed to its second reading by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent". 20. FIRST READING AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE A CON- TRACT BETWEEN THE CITY OF CORPUS CHRISTI AND ROGER SEAMAN FOR THE ANNEXATION CF APPROXIMATELY 44.59 ACRES OF LAND KNOWN AS SCUTHFORK UNIT 2, NUECES COUNTY, TEXAS; FINDING ALL OF SAID LAND TO LIE ENTIRELY 1FITHIN THE EXTRATERRITORIAL JURISDICTION OF THE CITY OF CORPUS CHRISTI, TEXAS, ADJOINING, CONTIGUOUS, AND ADJA- CENT THERETO; PROVIDING FOR SEVERABILITY. The foregoing ordinance was read for the first time and passed to its second reading by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent". Minutes Regular Council Meeting July 20, 1983 Page 7 21. SECOND READING AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE A CON- TRACT BETWEEN THE CITY OF CORPUS CHRISTI AND CANE HARBOR BAY COMPANY FOR THE ANNEXATION OF APPROXIMATELY 18 ACRES OF LAND KNOWN AS CANE HARBOR BAY, PADRE ISLAND, NUECES COUNTY, TEXAS; FINDING ALL OF SAID LAND TO LIE ENTIRELY WITHIN THE EXTRATERRITORIAL JURISDICTION OF THE CITY OF CORPUS CHRISTI, TEXAS, ADJOINING, CONTIGUOUS, AND ADJACENT THERETO; PROVIDING FOR SEVERABILITY. The foregoing ordinance was read for the second time and passed to its third reading by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent". 22. SECOND READING AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE A CON- TRACT BETWEEN THE CITY OF CORPUS CHRISTI AND B & G BUILDERS, INC. FOR THE ANNEXATION OF APPROXIMATELY 32.93 ACRES OF LAND; FINDING ALL OF SAID LAND TO LIE ENTIRELY WITHIN THE EXTRATERRITORIAL JURISDICTION OF THE CITY OF CORPUS CHRISTI, TEXAS, ADJOINING, CONTIGUOUS, AND ADJACENT THERETO; PROVIDING FOR SEVERABILITY. The foregoing ordinance was read for the second time and passed to its third reading by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent". 23. SECOND READING ADOPTING THE STANDARD PLUMBING CODE, 1982 EDITION, AND THE STAN- DARD GAS CODE, 1982 EDITION, WITH CERTAIN CHANGES THEREIN AND ADDITIONS THERETO, AS THE PLUMBING CODE OF THE CITY OF CORPUS CHRISTI; AND PROVIDING FOR AN EFFECTIVE DATE OF SEPTEMBER 1, 1983. The foregoing ordinance was read for the second time and passed to its third reading by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent". 24. THIRD READING - ORDINANCE NO, 17722 AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT MODIFYING THE TERMS OF A 15 -YEAR LEASE BETWEEN THE CITY, THE LOWER NUECES RIVER WATER SUPPLY DISTRICT, AND KAMPING PLEASURES, INC., ON A 47 -ACRE TRACT ADJACENT TO LAKE CORPUS CHRISTI. The foregoing ordinance was read for the third and final time and passed by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent". Minutes Regular Council Meeting July 20, 1983 Page 8 25. THIRD READING - ORDINANCE 17723 AUTHORIZING THE CITY MANAGER TO EXECUTE A THREE-YEAR LEASE AGREEMENT WITH MRS. HELEN MINNIE FOR MANUAL FOOD OPERATION CON- CESSION AT CORPUS CHRISTI GOLF CENTER. The foregoing ordinance was read for the third and final time and passed by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent". * * * * * * * * * * Mayor Jones called for consideration of motions from the Regular Agenda on the following items: 26. A public hearing be held August 10, 1983 on the electric rate request filled June 10, 1983 by Nueces Electric Cooperative, Inc. Council Member Culley suggested that this public hearing be conducted at the CalaIlen High School. A motion was made by Council Member Kennedy that the public hearing on the rate request filed by Nueces Electric Cooperative, Inc. be conducted at CalaIlen High School at 7:30 p.m. on August 10, 1983; seconded by Council Member Gulley; and passed unanimously by those present and voting. 27. Authorizing the City to join the Texas Municipal League in a joint study of Southwestern Bell's rate increase request before the Public Utility Commis- sion of Texas, and allocating $9,300 as the City's share in a state-wide effort. City Manager Martin explained that Southwestern Bell makes their filing directly with the Public Utility Commission; PUC has started the public hear- ings; the Texas Municipal League is preparing a package to represent the cities in the rate determination; and they are requesting cities in the state to join in that effort and the City of Corpus Christi plans to intervene and participate as a ratepayer and as a representative of other ratepayers. He informed the Council that contrary to the arrangements with Central Power & Light Company, the City will not be reimbursed for expenses. Mayor Jones suggested that the City of Corpus Christi have a member on the Steering Committee, and Mr. Martin stated that he sees no problem with that and informed the Council that possibly Assistant City Attorney Jay Dogey would be appropriate for that appointment. A motion was made by Council Member Kennedy that item 27 be approved with the stipulation that a request be made that a representative of the City of Corpus Christi be appointed to the Steering Committee; seconded by Council Member Zarsky; and passed by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent". 28. Appropriating $1,500 from the arts and cultural projects activity of the 1982-83 Tourist and Convention Development Fund for a Mariachi Band to perform on certain official occasions during fiscal year 1983-84. Minutes Regular Council Meeting July 20, 1983 Page 9 29. Amend, prior to second reading, the ordinance providing for a permit for users of burglar alarm systems so as to incorporate various modifications into the ordinance. Mayor Jones called for comments from the audience on items 26 thru 29. Mr. Ken Riley, 6518 Safari, spoke in regard to item 29 and informed the Council that they had met with the city staff and the Police Chief and a lot of progress had been made in resolving the disputable items included in this ordinance. He stated that the Association of Security Companies have discussed this and they feel that further improvements could be made in the ordinance. He referred in particular to definition of alarm site - which is one street ad- dress. He stated that they would like to have included in the statement that 1) each individual suite or door should be considered as one site; 2) in reference to definition of alarm system he stated that they would like added to that "to which the police are expected to respond" and 3) definition of false alarm on page 2, he stated that he felt the City should add "anything that is beyond the control of the alarm user". He explained that this should include items such as telephone lines being down, etc. He suggested that the user should have to prove the circumstances; 4) He objected to the exemption of alarms for gov- ernmental entities because in his opinion they created more false alarms than anyone; 5) He also suggested that alarm systems that have been certified as being UL standard equipment should be exempt; 6) Service Fee - they would like to see a citation written for any false alarms, rather than a service fee and 7) they would like to have some type of appeal provision. Chief Bill Banner of the Police Department provided an explanation of the reason for the inclusion of various items in the contract and further discussion fcl lowed. Mayor Jones requested a written request on the changes that the Asso- ciation desires so that the staff can investigate them prior to third reading of this ordinance. Mr. Ken Miller also requested additional changes in the ordinance. A motion was rnade by Council Member Zarsky that the amendments re- ferred to in item 29 be approved, seconded by Mayor Pro Tem Turner and passed unanimously by those present and voting. A motion was made by Council Member Zarsky that item 28 be approved, seconded by Council Member Gulley and passed unanimously by those present and voting. * * * * * * * * * * Mayor Jones called for action by ordinance from the Regular Agenda on items 30 thru 41. Mayor Pro Tem Turner referred to ordinance 34 which authorized the increase of the hotel occupancy tax from 4% to 6% and made a motion that the hotel -motel tax be increased from 4% to 7% and that the additional income gen- erated by this source be used for the water garden and other improvements at Minutes . Regular Council Meeting July 20, 1983 Page 10 the Convention Center; seconded by Council Member Kennedy; and passed unanimously. City Manager Martin provided a further explanation of this item and stated that 14 of the 34 increase would be dedicated to operating expenses of the Convention Center, which is now being subsidized by the operating budget; the second 14 would be dedicated to setting up a sinking fund for capital operation and maintenance of the Convention Center; and the third 14 would be dedicated to paying the City's share of the second area of the Convention Center, includ- ing a parking garage and a water garden. He stated also that the City will contribute to the construction of the parking garage. City Manager Martin stated that items 36, 37, 38 and 39 are related to the City's budget process and represent rate increases on various utility services. He explained that all four of these are proposed to take effect during the month of August which will be cycle billed in September of 1983. He pointed out that all of these increases maintain the concepts set forth last year with a low n,inimun charge with higher charges for large users. Council Member Hawkins expressed opposition to the rate increases and suggested that some limit be set on the in lieu of and franchise taxes that are placed in the general fund so that those funds can be used to assist the low income level residents. He pointed out that there is a need to look for ways to help people pay their utilities. Mayor Jones expressed the opinion that the utility services should pay for themselves but the lowest increases should be for the minimum users. Council Member Zarsky inquired about the percentage of increases and Mr. Mark Gresham, Budget Director, explained that water represents a 3% increase; sanitation, 3%; wastewater, 5%; and gas, 7%. Council Member Zarsky stated that there is a need to increase salaries for employees and he did not feel that it is unfair to charge users for the services they receive and emphasized the fact that the City is not making a profit on utilities. City Manager Martin informed the Council that the wage increases will be discussed further next week. He briefly explained that the firefighters will receive a u% increase; general non -management employees will receive approxi- mately 4%; and the managerial group will receive 1% less than that. Mayor Pro Ter: Turner inquired if it would be possible to retain the cur- rent rate on utilities for the minimum user and increase the rate for the higher users, and City Manager Martin replied in the affirmative. Mayor Pro Tem Turner then suggested that the minimum user rates not he increased. Mrs. Turner also noted that the City proposes charging very little more for outside the city limits as opposed to inside the city limits. Mayor Jones stated that he felt that the charges should be based on the cost of providing these services and it should not be on a social program basis. Minutes Regular Council Meeting July 20, 1983 Page 11 Council Member Gulley reminded the Council that the City's budget was short last year and reiterated that the City is not charging rates to make a profit but is just increasing rates to pay the actual costs. PAayor Jones called for comments from the audience on the rate increases. Mr. Ron McGee, 434 Linnet, indicating that he was speaking on behalf of a civic organization, expressed the opinion that the average homeowner cannot pay these increases in utility rates, particularly people on a fixed income. He suggested other means of raising funds because the City should not profit from the ratepayer. He stated that the City earned $21 million on utilities. Council Member Kennedy inquired of Mr. McGee the source of that informa- tion and that figure. Mr. McGee stated that he had checked the annual reports for the last few years from 1974 to 1979, including the franchise tax and the in lieu of taxes, which were included in that figure. Council Member Kennedy assured Mr. McGee that that was not profit, it was simply money carried over for operating the utilities for the next year. He pointed out that carrying money forward for the next year's operating expenses is not a profit and is just good business sense. There were no further comments en these items. Mayor Jones suggested that ordinances 30 through 39, 34 having been amended, be voted on at this time, following which a discussicn of Ordinance No. 40 would be conducted. City Secretary Read polled the Council for their votes and the following ordinances were passed. 30. ORDINANCE NO. 17724 AMENDING THE CITY CODE SECTION 2-153 TO SPECIFY THAT CERTAIN FUNDS REMAINING IN THE TOURIST AND CONVENTION DEVELOPMENT FUND AT THE END OF EACH FISCAL YEAR BE TRANSFERRED TO THE PERMANENT ART TRUST FUND; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent." 31. ORDINANCE NO. 17725 AMENDINC ORDINANCE NO. 15459, ADOPTED APRIL 2, 1980, AUTHORIZING EMINENT DOMAIN PROCEEDINGS EY THE CITY OF CORPUS CHRISTI TO CONDEMN FEE TITLE TO A CERTAIN PARCEL OR TRACT OF LAND LOCATED IN NUECES COUNTY, TEXAS EY ADDING A. DESCRIPTION OF CERTAIN IM- PROVEMENTS, WOOD PILE AND FRAME PIER, IDENTIFYING TFIE RECORD TITLE OWNERS AND CITING LIEN HOLDERS OF RECORD, SAID CONDEMNA- TION BEING NECESSARY FOR THE ACQUISITION OF THE HEREINAFTER MORE Minutes Regular Council Meeting July 20, 1983 Page 12 FULLY DESCRIBED TRACT FOR THE CORPUS CHRISTI BEACH IMPROVEMENT PROJECT; DIRECTING THE CITY ATTORNEY TO INSTITUTE CONDEMNATION PROCEEDINGS AGAINST JIMMY E. SELSOR AND WIFE, ROIANNA SELSOR, AND JACK L. TUCKER, TO CARRY OUT THE INTENTIONS OF THE ORDINANCE; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent." 32. FIRST READING AUTHORIZING THE CITY MANAGER TO EXECUTE A MODIFICATION OF LEASE AGREEMENT WITH FIRST CITY BANK OF CORPUS CHRISTI, TRUSTEE, AND CHARLES N. RAYBURN!, COVERING COMMERCIAL HANGARS AND FIXED BASE AVIATION LEASE PLOTS AT THE CORPUS CHRISTI INTERNATIONAL AIR- PORT, MODIFYING THE EXISTING ASSIGNMENTS AND LEASE AGREEMENT, AND PROVIDING FOR A NEW THIRTY (30) YEAR LEASE UPON COMPLIANCE WITH ARTICLE VIII, SECTION 2(c) BY CHARLES N. RAYBURN, ALL AS SHOWN IN THE MODIFICATION OF LEASE AGREEMENT, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, MARKED EXHIBIT "1". The foregoing ordinance was read for the first time and passed to its second reading by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent." 33. ORDINANCE NO. 17726 AUTHORIZING THE EXECUTION OF A CONTRACT WITH AUSTIN TRAFFIC SIGNAL CONSTRUCTION COMPANY FOR THE TRAFFIC SIGNALIZATION CAPI- TAL IMPROVEMENTS AND MODERNIZATION PROJECT; APPROPRIATING $135,000 FOR THIS CONTRACT; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent." 34. FIRST READING AMENDING SECTION 17-36 CF THE CITY BY AMENDING THE HOTEL OCCU- PANCY TAX FROM FOUR PERCENT TO SEVEN PERCENT (7%); PROVIDING FOR AN EFFECTIVE DATE ON AND AFTER SEPTEMBER 1, 1983; PROVIDING A SEVERANCE CLAUSE; PROVIDING FOR PUBLICATION. The foregoing ordinance was read for the first time and passed to its second reading by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent." Minutes Regular Council Meeting July 20, 1983 Page 13 35. FIRST READING AMENDING ARTICLE III, WATER RATES, SECTION 55-51, CHARGES FOR RECONNECTING AND REPLACING METERS, AS AMENDED, AND ARTICLE I'V, GAS RATES, SECTION 55-62, CHARGES FOR RECONNECTING AND REPLACING METERS, AS AMENDED, TO INCREASE THE SERVICE CHARGE FOR RECON- NECTION OF SERVICE THAT HAS BEEN DISCONNECTED DUE TO A FAILURE TO PAY A DELINQUENCY; REPEALING ALL ORDINANCE HEREWITH; PROVID- ING FOR SEVERANCE; PROVIDING AN EFFECTIVE DATE UPON FINAL PAS- SAGE AND PUBLICATION; AND PROVIDING FOR PUBLICATION. The foregoing ordinance was read for the first time and passed to its second reading by the following vote: Jones, Turner, Gulley, Kennedy and Zarsky voting "aye"; Hawkins "no"; Dumphy, absent. 36. FIRST READING AMENDING CHAPTER 55, UTILITIES, ARTICLE IV, GAS RATES AND CHARGES, SECTION 55-61, CLASSIFICATION OF CUSTOMERS AND SCHEDULES OF RATES, AS SET FORTH IN ORDINANCE NO. 17155, AS AMENDED, SO AS TO CHANGE THE SCHEDULE OF GAS RATES FOR ALL CUSTOMERS TO THE CITY -OWNED GAS DISTRIBUTION SYSTEM BY PROVIDING A NEW SCHEDULE OF RATES FOR ALL GAS CUSTOMERS; PROVIDING FOR SEVERANCE; PROVID- ING AN EFFECTIVE DATE UFCN FINAL PASSAGE AND PUBLICATION THERE - CF; AND PROVIDING FOR PUBLICATION. The foregoing ordinance was read for the first time and passed to its second reading by the following vote: Jones, Turner, Gulley, Kennedy and Zarsky voting "aye"; Hawkins "no"; Dumphy, absent. 37. FIRST READING AMENDING SECTION 55-50 OF THE CITY CODE OF ORDINANCES, 1976 RE- VISION AS AMENDED BY ORDINANCE 17166, PASSED AND APPROVED JULY 28, 1982, BY AMENDING CERTAIN SCHEDULES THEREIN 50 AS TO INCREASE WATER RATES FOR CUSTOMERS USING TREATED OR UNTREATED WATER; PROVIDING AN EFFECTIVE DATE FOR CYCLE ONE BILLINGS ON OR ABOUT SEPTEMBER 1, 1983 FOR AUGUST WATER CONSUMPTION. The foregoing ordinance was read for the first time and passed to its second reading by the following vote: Jones, Turner, Gulley, Kennedy and Zarsky voting "aye"; Hawkins "no"; Dumphy, absent. 38. FIRST READING AMENDING SECTION 55-100 OF THE CODE OF ORDINANCES, 1976 REVISION, SO AS TO PROVIDE CERTAIN INCREASES IN WASTEWATER RATES; PROVID- ING FOR REPEAL GF ALL ORDINANCES IN CONFLICT; PROVIDING FOR AN EFFECTIVE DATE BEGINNING WITH CYCLE 1 ON OR AROUND AUGUST 1, 1983; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR PUBLICATION, The foregoing ordinance was read for the first time and passed to its second reading by the following vote: Jones, Turner, Gulley, Kennedy and Zarsky voting "aye"; Hawkins "no"; Dumphy, absent. Minutes Regular Council Meeting July 20, 1983 Page 14 39. FIRST READING AMENDING SECTION 21-7, 21-18 THROUGH 21-21.1, AND 21-46 OF THE CODE OF ORDINANCES, 50 AS TO INCREASE GARBAGE COLLECTION AND DISPOSAL CHARGES APPROXIMATELY THREE PERCENT (3%) EFFECTIVE WITH THE FIRST BILLING CYCLE IN THE MONTH OF AUGUST, 1983; PROVIDING FOR SEVER- ANCE; AND PROVIDING FOR PUBLICATION. The foregoing ordinance was read for the first time and passed to its second reading by the following vote: Jones, Turner, Gulley, Kennedy and Zarsky voting "aye"; Hawkins "no"; Dumphy, absent. City Manager Martin then referred to Ordinance No. 40 which is the sec- ond reading authorizing a 60 -year lease agreement with Bayfront Associates for the development of a new land mass. He briefly reviewed the events that occurred at the time of the first reading of this ordinance and noted that the Council had discussed a number of changes. He stated that as a result of these changes, a revised copy of the lease agreement had been sent to the Council the preceding Friday with a list of the ten items which had been mod- ified and to which the developer had agreed. He then asked Assistant City Manager Tom Utter to briefly review those modifications. Mr. Utter explained the follovving changes that have been incorporated into the lease agreement: 1) deletion of section 2.07 pertaining to the possible conveyance of the land mass tracts; 2) section 3.01 on page 6 pertaining to the lease term of 60 years which remains unchanged pending further discussion between the staff and the developers; 3) the date of occupancy in section 5.06 was clarified to specify the date the first certificate of occupancy was issued for any of the buildings on tract 1 and tract 3; 4) the limitations on use of the buildings were described further to be limited to tourist, recreation and water oriented activities with the addition of charter boat agencies and travel agencies as allowable uses. Department stores were deleted and the provision for night clubs was qualified to allow no more than one facility serving alcoholic bever- ages which was not related to a restaurant operation. The use of office space was limited to no more than 20% the first six years and 10% thereafter, but a provision was added to specifically allow offices for tourist, recreation and water oriented purposes; 5) the section pertaining to architectural motif in 8.08b on page 14 was expanded to include that landscaping, signage, street furniture and other accoutrements be consistent with the bayfront plan; 6) the procedures pertaining to review of the final plans and specifications were changed to provide for final review by the Planning Commission and then final approval by the City Council; 7) the leasing of boat slips covered in section 10.05 on page 18 was changed to make the City the leasing agent of all boat slips in the marina. This item was specifically not agreed upon by the develop- er; 8) the duties of repair and maintenance by the lessee in article 13 were expanded to include all of the bulk heading on the land mass and all of the street and public parking areas; 9) a limitation was added in section 16.02b that the commercial building space be limited to 85,000 s.f.; 10) an additional article was added as article 32 "Early Cancellation by City" to allow cancellation at no cost by the City within 30 days from the execution of the agreement, in order to allow the new Council to be seated prior to a point of no return on the contract. This item has not been agreed to by the developer either. Minutes Regular Council Meeting July 20, 1983 Page 15 Discussion followed among the Council Members in regard to the possibility of a 30 or 40 year lease rather than the 60 year lease. Council Member Hawkins inquired about the petition that Mrs. Mary Pat Slavik had presented requesting a referendum to be placed on the ballot for the land mass. City Secretary Read explained that that petition was presented during an open Council Meeting but it was not in the appropriate format of a petition to force an election. Mr. Hawkins continued by stating that he did not think this was a fair contract because of the exclusive rights of the development and he did not think that was best for the citizens. He also expressed the opinion that the public should have the right to comment before the final lease is adopted be- cause he had the feeling that this is more in favor of the developer than it is the citizens of Corpus Christi. Mayor Jones referred to the term included in the document hiring a finan- cial consultant and Mr. Utter stated that the developer has a financial consul- tant which is the firm of Laventhol & Horwath. He pointed out that the City has used Laventhol & Horwath on other projects. Mayor Jones then inquired if the staff would like to have the authority to employee a financial consultant and Mr. Utter replied that if the Council would like an outside opinion, an outside consultant could be employed. Council Member Zarsky stated that he thought Mr. Hawkin's suggestion that there should be a sliding scale lease term had some merit and he would like to see ar economic advisor make sure that the City is getting the best deal possible for the people. He sees no problem in approving the second reading but delaying the third reading until a financial consultant could make an analysis of the contract. City Manager Martin stated that he did not think that the City needed an outside consultant to analyze the agreement and he recommended approval of the lease agreement. Council Member Gulley agreed that this is a no risk deal for the City but pointed out that the City is giving these developers the prime location in the entire City and that in itself is worth a great deal. He stated he would still like to have the staff discuss with the developers the +5 year provision, noting that he did not object to the first five year period after completion, but he did object to the additional five year exclusive. Mr. Gulley then made a motion to renegotiate that clause of the lease agreement, seconded by Mayor Pro Tem Turner. Council Member Kennedy inquired if this implied that the Council was in agreement with everything else, and Mr. Gulley stated that that is his motion that everything else be accepted except that provision. Council Member Hawkins stated that he felt that they should also have the provision to renegotiate in a shorter period of time than the 40 years. Minutes Regular Council Meeting July 20, 1983 Page 16 Council Member Zarsky indicated that he was opposed to the motion if it is made with the understanding that there will be no further discussion on the lease because he agreed with Mr. Hawkins that the City should analyze the revenue of 1% of gross with the intention of setting up a formula for renegotiation. He stated that he would also still like to have an expert inform the Council if there is a formula that could be devised to protect the City if this is an extremely profitable business. Council Member Gulley reiterated that at this point, he would like to have this adjustment but pointed out that next week something else could surface that would require a change in the lease agreement. Mayor Jones explained that the motion is to accept this contract with the amendments that had been made and with the additional amendment pertaining to the five year period. The motion passed as follows: Jones, Turner, Gulley and Kennedy voting "aye"; Hawkins and Zarsky voting "no"; Dumphy "absent." Mayor Pro Tem Turner stated that she has some concerns about the assur- ance of design, maintenance, etc., and also has concern about the allocation of a certain percentage for office space. Mayor Jones then called for comments from the public. Mr. Harold Alberts, 618 Dolphin, stated that he felt that the land mass concept is a splendid idea and complimented the Council and the staff for their efforts. Mr. Alberts pointed out, however, that he was of the opinion that the over 30 page lease agreement is the most ambiguous, unfair contract that he has ever read. He pointed out that the developers actually have no respon- sibility for anything. He objected to Article 4.01 in regard to the time require- ments, pointing out that the developer has 18 months to begin the project; he then has 4 years to complete the project, then at this point the first five years begins and they have an additional five years exclusive right, during which time no other land mass is permitted and in effect the City Council is allowing these developers to have exclusive use of the bayfront. He also expressed the opinion that the percentage to be paid to the City is too low. He urged that the ordinance not be read on second reading until more of the problems are resolved. Mr. Tom Matthews, 4429 Creensboro, stated that he felt that most of the citizens are in favor of a land mass but that he has some concern about the terms and covenants that are included in this lease agreement. He expressed the opinion that he felt that it was incredible that the City has not discussed a reasonable rate of return from the project and pointed out that no one knows what will happen in the next 40 years. Mr. Matthews also questioned the equity of the negotiations since they seem to all be in favor of the developer. He pointed out that the City should determine fair market value and then the City should share in the profits at some time in the future. He stated that he is disappointed that the Council voted on the motion to approve this before public comments were made. Minutes Regular Council Meeting July 20, 1983 Page 17 Dr. Jack Best, 225 Bayshore, inquired if the Council had already voted on the second reading of the ordinance, and Mayor Jones replied that they had voted on Mr. Gulley's motion only. Dr. Best continued by stating that he is definitely in favor of the land mass but he felt that the lease agreement had some glaring errors. He noted that the City plans to enter into a contract with Bayfront Associates, but it should be for a reasonable period of time so that the City will be able to share in the profits. He stated that hopefully the developer and the City would make money from this project. He also stated that he had been to several public hearings pertaining to this and none of the presentations indicated that boat slips will be constructed by the developer on City land for their own profit. He objected to giving the Peoples Street T -Head to the developer since it is public property and belongs to the citizens. He also objected to the two five year periods and agreed that there should be a 30 day delay until the new Council is in office. He urged that the Council not approve this on second reading until more of the questions had been answered. Mr. Ron McCee also stated that he is in favor of the land mass but he has many questions about the lease agreement. He inquired as to which ordinance or which portion of the City Charter gives the City the legal right to give away public property, referring to the use of the Peoples Street T -Head by the private developer. He urged that all the problems be worked out and allow the new Council to make the decision as to whether or not this should be approved. Mr. Larry Tucker complimented the Council and the staff who have worked on this for such a long period of time. He referred to the boat slips that would he constructed on the north side of the Peoples Street T -Head for a profit for the developers and noted that they would probably charge larger fees than the City does. He then suggested that the City increase their rents to the sarne as that charged by the developers which would generate additional income to build more boat slips and other improvements. He also stated that he felt that it would be difficult to find a consultant who would be willing to analyze a report from a reputable firm such as Laventhol & Horwath who prepared the feasibility study for this project. He emphasized the fact that the true test of this project would be the lender of the money because he will not loan the money if he does not expect to make a profit. Mr. Sam Allen questioned the length of time of the lease because it is possible that the project will be very profitable and he felt that it is very shortsighted of the City to agree with the 1% of gross as their profit because this amount may not be a fair figure in the future if the business is very profitable. He also concurred with Mr. CuIley's concern: about the second five year period in which they will have first option to construct another land mass. Mr. John Stensland, 337 Primrose, member of the Marina Board, also stated that he was in favor of the land mass. He too objected to the five year moratorium and the five year option for them to meet the proposal of any other development. He pointed out that it might be possible to retire the bonds earlier than that and the City might like to construct a land mass or have another developer corstruct one. Minutes Regular Council Meeting July 20, 1983 Page 18 Mr. Stensland continued and referred to the plan for the developer to construct 450 boat slips and questioned the lease term that indicated that a "majority" of the boat slips will be leased to those on the marina waiting list. He questioned why all of them would not be leased in that order. He urged that the Marina Office have the right to control these boat slips since they will be on public land. He pointed out that if the Marina Superintendent did not control the beat slips it would be impossible to move the boats around in the privately owned slips when necessary for him during storms and hurricanes. Mr. John Welch, 410 Santa Monica, commended the Council and the staff for all of their work, indicating his concurrence with the plans. Mr. Max Luther stated that he has had a great deal of experience in negotiating contracts and he questioned the fact that the City staff does not have enough proper information to negotiate a fair contract. He questioned the statement Trade by a staff member that the City is negotiating a 40 year agree- ment based on information provided by the other party to the agreement. Further discussion followed and Mr. Utter admitted that no one but the City staff has closely examined the terms of the agreement. Mayor Pro Tem Turner suggested that an escalation clause be included in the agreement, and Mr. Utter stated that they can try to get the developer to agree to that. Mayor Jones urged passage of the second reading with the changes ap- proved today and pointed out that with the 30 day delay required, the new Council will be able to change anything that they would like. Council Member Zarsky stated that he is in favor of the project but he still feels that an analysis should be made of the agreement by an expert just to make sure that the City is not making a mistake on a lease of this length. Mayor Pro Tern Turner again urged the staff to meet with the developers in an attempt to work out an escalation clause to be included in the agreement. City Manager Martin stated that it is not appropriate for the staff to approach the developers and ask them about this because the staff needs to know exactly what the entire Council wants. Mayor Fro Tem Turner explained that the Council needs to know something about the profit bit she definitely felt that there should be an escalation clause that protects the profit margin. A motion was made by Council Member Hawkins that the Council instruct the staff to negotiate some kind of escalation clause to be included in this lease agreement, seconded by Council Member Zarsky. Council Member Gulley pointed out that a percentage of the gross is al- ready an escalation clause because the more business generated, the more the City will receive. Minutes Regular Council Meeting July 20, 1983 Page 19 Mayor Jones called for the vote on the motion pertaining to the escalation clause and it passed as follows: Jones, Turner, Hawkins, Kennedy and Zarsky voting "aye"; Gulley voting "no"; Dumphy "absent". A motion was made by Council Member Hawkins that the second reading of the ordinance be tabled. The motion died for lack of a second. City Secretary Read then polled the Council for their vote on the second reading of the ordi- nance as amended and it passed as follows: 40. SECOND READING AUTHORIZING A 40 -YEAR LEASE AGREEMENT WITH BAYFRONT ASSOCIATES, LTD., FOR THE DEVELOPMENT OF A NEW LAND MASS NORTH OF THE PEO- PLES STREET T -HEAD AND RELATED BOAT SLIPS. The foregoing ordinance was read for the second time and passed to its third reading by the following vote: Jones, Turner, Gulley, Kennedy and Zarsky voting "aye"; Hawkins "no"; Dumphy "absent." There was no discussicn of the second reading of the burglar alarm ordi- nance and it passed as follows: 41. THIRD READING - ORDINANCE NO. 17742 PROVIDING DEFINITIONS; PROVIDING FOR ISSUANCE OF A PERMIT TO ANY PERSON WHO OPERATES OR CAUSES TO OPERATE CERTAIN ALARM SYSTEMS; PROVIDING FOR SERVICE FEES FOR CITY RESPONSES TO EXCESSIVE FALSE ALARMS; PROVIDING FOR REVOCATION OF PERMITS; APPEAL FROM SERVICE FEE, DENIAL OR REVOCATION OF A PERMIT; PROVIDING STANDARDS FOR ALARM PROTECTIVE SERVICES AND ALARM SYSTEM OPERATION; PROVIDING AN EFFECTIVE DATE; PROVIDING A SEVERANCE CLAUSE; AND PROVIDING A PENALTY. The foregoing ordinance was read for the third time and passed by the follow- ing vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy "absent." * * * * * * * * * * Mayor Jones recessed the Regular Council Meeting at 7:20 p.m. * * * * * * * * * * Mayor Jones reconvened the Regular Council Meeting at 7:35 p.m. and announced the public hearing on the following matter: 42. Changing the names of the streets listed below which are all located within the Padre Isles Development. The existing names of these streets are duplicates of other streets in the Padre Isles development and the Padre Isles Property Owners' Association requested the street name changes to eliminate the confusion that exists. All City Departments and the U. S. Postmaster concur with the street name charges. Minutes Regular Council Meeting July 20, 1983 Page 20 a) Mizzen Street (located between Aquarius and be changed to Skysail Street; b) Cutlass Street (located between Flint Lock Drive) to be changed to Crossjack Street; c) Doubloon Avenue (located between Gypsy and be changed to Spanker Street. Mr. Larry Wenger, Director of Planning, briefly explained the reason the street name changes were necessary, noting that duplicate names existed in the same area. He located the streets on a transparency. Lighthouse Streets) to Drive and Windjammer Cuttysark Streets) to Mayor Jones called for comments from the audience. Ms. Melissa McHargue stated that she is a property owner whose property sides on the existing Doubloon Avenue. She objected to the suggested name change of Spanker and suggested either Quaile Run or Whaler Avenue. Mr. Wenger explained that the names were submitted by the Padre Isles Property Owners Association and stated that Spanker is a sail name. He stated that his staff had checked all of the suggestions to determine if there were any duplications anywhere in the City. He indicated that there is a possibility that there might be duplications of some of the other street name suggestions which were submitted by the association. A motion was made by Mayor Pro Tem Turner that the name changes for Mizzen and Cutlass Streets be approved and that the name change for Doubloon Avenue be tabled until Ms. McHargue has an opportunity to contact the Proper- ty Owners Association to see if they will concur with one of her suggested names. * * * * * * * * * * 43. Amendment to the Master Sanitary Sewer Plan for the southern area of the City for the area bounded by Oso Creek, Holly Road and east of the Saratoga Boulevard/Cabaniss Field Area. The recommended changes will: a) delete the stage construction concept, thus making administration of the plan less burdensome, b) realign service boundaries to follow property lines, thus making development of properties easier, c) reduce the number of lift stations to serve the area, thus eventually reducing operating costs. Assistant City Manager James K. Lontos explained that the present Sani- tary Sewer Plan was amended in 1973 by McCaughan & Etheridge which eliminat- ed the use of large concrete sewer lines and in lieu thereof it included a stage development plan with a number of trunk lines, lift stations, and force mains smaller than 36 inches. He explained that the intention of these amendments was to make it easier for the properties in the south portion of the City to develop. Mr. Lontos continued by stating that it had been discovered that because of the stage construction, the Master Plan boundaries sometimes bisects property ownership, thus requiring continuous amendment to the plan. He Minutes Regular Council Meeting July 20, 1983 Page 21 explained that the proposed amendments will resolve a majority of the questions which are normally raised during development and will eliminate the necessity to bisect tracts of land, and because there will be fewer lift stations and operating costs will be reduced. He noted that it will also streamline the development on the south side of the City. There were no comments from the members of the audience. A motion was made by Council Member Kennedy that the hearing be closed, seconded by Council Member Zarsky and passed unanimously. Mr. Lontos informed the Council that an ordinance effecting the amend- ments to the Master Plan will be on the agenda next week. * 44. Closing approximately 350 linear feet of Hearn Road in the Five Points Prez. This closure request is related to the proposed improvements in the Five Points Area which are currently under contract by the State Depart- ment of Highways and Public Transportation. Mr. Jerry Smith, Chief Engineer, explained that the portion of Hearn Road to be closed is a segment connected with the paving assessment hearing on the street improvements in the Five Points area. He pointed out the small portion of Hearn Road near the Five Points fire station which the staff proposes to close sc that Hearn Road can be realigned. Mr. Smith stated that at this time he would also explain the paving assess- ments associated with the project previously mentioned as described below. 45. Assessment Hearing - Adopting the preliminary assessment roll for U.S. 77 Frontage Roads (from 2,000' south of F.M. 624 to 2,600' north of F.M. 624), F. M. 624 (400' westerly from Highway 77), Up River Road (Highway 77 to Hearn Road), and Hearn Road (Up River Road to Hearn Road cul-de-sac) Roadway Reconstruction Project providing for assessments of $117,971.73 for the 41 items on the roll. Mr. Smith stated that the cul-de-sac will be constructed following the closing of the portion of Hearn Road previously discussed. He informed the Council that Heldenfels Brothers had submitted the low bid in the amount of $6,888,456.37; the preliminary assessments will be $118,271.73 and the City's share of the project will be $839,100. Mr. Smith continued by stating that the State plans to install an overpass with a full interchange and it is a joint project between the City and the State Department of Highways and Public Transportation. A motion was made by Mayor Pro Tern Turner that the public hearing pertaining to the closing of 350 linear feet of Hearn Road in the Five Points Area be closed, seconded by Council Member Kennedy and passed unanimously. Minutes Regular Council Meeting July 20, 1983 Page 22 A motion was made by Mayor Pro Tem Turner to approve the closing of this portion of Hearn Road, seconded by Council Member Kennedy and passed unanimously. Council Member Gulley asked if the City's justification for assessing the property owners is because the City is building a new fire station at this location, and Mr. Smith replied that this intersection was part of the 1982 Eond Program. Mayor Pro Tem Turner noted that several property owners on Five Points Road object to the assessments and inquired if there is really a need for side- walks at this location. Mr. Smith stated that he felt that there was a need because there are no sidewalks except on Calallen Drive and there are two schools in the area. Mr. Smith also pointed out that the staff recommends replacing asphalt driveways with concrete driveways. Mrs. Turner then inquired if the property owners are in agreement with the concrete driveways, and Mr. Marion Brown, Paving Coordinator, stated that he had received three calls from commercial owners w•ho are in favor of the concrete driveways and nose have expressed opposition. Mr. George N. Paraskevas, real estate appraiser, stated that he had examined each and every piece of property included on the assessment roll which consists of 41 items and it was his professional opinion that the prop- erties being assessed in the street improvement project will he enhanced at least in the amount of the assessment. Mayor Jones then invited members of the audience to speak. Mr. John Welch referred to item 14 on the assessment roll and stated that he represents the property owner Miss Kitty Wolfe Gentry. Mr. Welch ques- tioned the City's charging assessments to people who live outside the city limits. He pointed out that his client's tract is in a rural area. Mr. Smith explained that the State statutes do allow for OCL assessments if it is contiguous to property inside the city limits and Miss Gentry's property does qualify. Mr. Welch continued by stating that it is farm land and his client has no plans to develop it. Mr. Smith pointed out that the drainage improvements will make that property available for development. Mr. Welch pointed out that the drainage on this property goes south and it is not right to say that these improvements will help his client. Mr. Brown pointed out that there is no assessment charge on Mrs. Gentry's property for sidewalks. Minutes Regular Council Meeting July 20, 1983 Page 23 Mr. John Fritch, 43314 Five Points Road, expressed concern about the fact that frontage road on Highway 77 is being diverted to within. 30 feet of his property. Mr. Smith explained that there will be some temporary traffic lanes into the frontage road. Mr. Fritch then expressed concern that the south bound lanes of Highway 77 will be very close to his front door and he feels that that poses a danger. Mr. Smith assured him that this would be temporary during construction only, but it could be for a year or longer. Mr. Fritch then expressed concern about the drainage because they now have a gully on Five Points Road which provides drainage and if standard drainage is installed he is apprehensive that the new planned drainage would not be as efficient as the existing drainage. Mr. Smith explained that all of the properties drain to the street; this is en expensive drainage box that is planned for this area; and it is his opinion that the drainage will be more than adequate. Mr. Fritch also expressed concern about the assessments levied for side- walks, curbs and gutters and informed the Council that everyone he has talked to feels that these assessments are unjust because as citizens they should have the right to decline sidewalks and other improvements. He expressed the opinion that general tax revenue should be used for these improvements. Council Member Zarsky agreed with Mr. Fritch that voluntary requested improvements should include assessments; however, involuntary improvements should not have the same assessments since the property owners did not re- quest the improvements. Mr. Smith further explained that there is no distinction between the two kinds of street improvements and most cities charge higher assessment rates. Council Member Zarsky stated that in his opinion when street improvements are for the benefit of the entire community, then the City should pay for it, but if it is for the benefit of particular property owners, they should pay for it. Mr. Smith explained the method of payment of assessments by stating that at the completion of the project they may be paid for in cash or monthly install- ments for a five year period at an interest rate of 8% or, in cases of hardship, that period may be extended to ten years. Mayor Jones suggested that the various methods of payment be included in the first assessment letter sent to the property owners, and Mr. Smith agreed that this would be a good idea. There were no further comments from members of the audience. Minutes Regular Council Meeting July 20, 1983 Page 24 A motion was made by Council Member Kennedy that the hearing be closed, seconded by Mayor Pro Tem Turner, and passed unanimously. A motior was made by Council Member Gulley that the preliminary assess- ment roll for U.S. Highway 77 Frontage Road be approved, seconded by Council Member Hawkins and passed unanimously. * * * * * * * * * * 46. RECESSED HEARING Application No. 583-2, Mr. Ben Grande: for a change of zoning from 1'I-2" Light Industrial District to "B-4" General Business District on Lot 2-A, Block 2, Seikel Addition, located on the southeast corner of Agnes and Eleanor Streets. This application was heard on July 6, 1983 and recessed until a full Coun- cil could be present. The 20% rule is in effect on this case and six affir- mative votes of the Council are required to approve the change of zoning. Fourteen notices of the public hearing have been mailed and one in favor and three in opposition have been returned. The Planning Commission and Planning Staff recommend denial. Mr. Utter informed the Council that this application is a 20% rule case and it was recessed for that reason until a full Council was present. He noted that it will require six affirmative votes to approve the requested zoning. Council Member Gulley suggestecl that since Council Member Dumphy was absent that it be delayed further until the entire Council is present. Mr. Larry Wenger briefly reviewed the previous public hearing. He located the area on the zoring and land use map, described the land use in the surrounding area, showed slides of the area and pointed out that there are three structures on the rear portion, two of which are duplexes and one is a single family dwelling, which is in violation of "1-2" zoning. He noted that they are separate structures. Mr. Wenger continued by stating that the appli- cant would still have a problem if "B-4" zoning is approved because of the existence of the separate buildings. He explained that if the applicant connect- ed the buildings in some way he could be allowed to retain the residential structures because one unit is allowed in this type of zoning. He suggested that if the Council desired, they could approve a special permit for the portion of the lot that has the residential unit subject to their being connected. A motion was made by Council Member Kennedy that the hearing be closed, seconded by Mayor Pro Tern Turner and passed unanimously. A motion was made by Council Member Kennedy that a special permit be approved for the rear portion of the property, subject to an approved site plan, seconded by Mayor Pro Tem Turner and passed unanimously. * * * * * * * * * * Minutes Regular Council Meeting July 20, 1983 Page 25 47. Application No. 683-1 , Mr. Guy Morrow dba Two Morrows Gallery: for a change of zoning from "R -1B" One -family Dwelling District with "SP" Special Permit to "B-1" Neighborhood Business District, on Lot 6, Block 8, Koolside Addition, located on the west side of Airline Road, approximately 150' south of the intersection of Airline Road and Lum Street. Assistant City Manager Utter informed the Council that in response to the 27 notices of the public hearing, 8 in favor and 2 in opposition had been re- turned. He stated that both the Planning Commission and Planning Staff recom- mend denial. Mr. Utter informed the Council that this property was one of the sites on Airline Road that was cited for illegal free-standing signs and that sign is still located there. Mr. Wenger located the area on the zoning and land use map, described the lard use in the surrounding area, showed slides of the area and informed the Council that a special permit had been granted for a sign to be placed on the building on the lot. Mr. Wenger stated that Mr. Morrow also has a special permit for parking on the Feudo's grocery store parking lot which is adjacent to his shop. Council Member Gulley inquired about the date the special permit for the sign on the building was approved, and Mr. Wenger replied that it was May 27, 1981. Council Member Kennedy inquired as to when a citation was issued for the illegal sign which is free-standing in front of his building, and Mr. Wenger stated that he was cited about 3 months ago. Mayor Jones called for comments from the applicant. Mr. Ben Donnell, 1515 First City Bank Tower, representing Mr. and Mrs. Morrow, stated that Mr. Morrow had requested "B-1" zoning. He stated that if the Council examines the use on Airline Road, they would find that special permits may have been appropriate a few years ago, but the character of the street had charged a great deal in the last few years. He displayed pictures of the shops which are located on Airline at this time. He stated that Mr. Morrow has problems with the special permit recommended because of the diffi- culty in obtaining financing and he would like to convert the front portion of the property for other use. He pointed out that Mr. Morrow's property is located between business zoned property and they feel that the "B-1" zoning is more appropriate than a special permit because the neighborhood is ready for "B-1" zoning; Mr. Morrow needs it; the neighbors do not oppose this zoning; and his property already meets all of the requirements of "B-1" zoning includ- ing offstreet parking. Council Member Zarsky inquired about where Mr. Donnell would recommend stopping the "B-1" zoning. He pointed out that residences are located across the street and consideration should be given to those property owners as well. Mr. Donnell stated that if he were being totally candid, he would have recom- mended that the "B-1" zoning should have been stopped before it was ever granted on Airline, but the fact is that "B-1" zoning already exists on this portion of Airline Road. Minutes Regular Council Meeting July 20, 1983 Page 26 Mr. Wenger pointed out that Mr. Feudo who owns the grocery store adja- cent to this has expressed opposition to the change of zoning. He pointed out that there is insufficient offstreet parking for "B-1" zoning on Mr. Morrow's property. He again suggested that a special permit be approved. Mr. Wenger elaborated on his remark in regard to the insufficient parking, pointing out that if a restaurant or some other type of high volume business was constructed on this lot, there would certainly be insufficient parking. He noted that if "B-1" zoning is approved, all of the other business located on Airline would request "B-1" zoning as well. He reminded the Council that the staff had suggested "AB" zoning on this street to prevent so much traffic and there are not any high volume traffic types of businesses located there. He pointed out that if "B-1" zoning is approved, a number of fastfood types of restaurants could be located there and the same difficult situation would exist on Airline as on Everhart Road. Council Member Kennedy inquired about the study being conducted by the Planning Commission on different types of signage for "AB" property, and he was informer that they are still working on this. Council Member Kennedy then suggested recessing this zoning case until the Council has received a report from the Planning Commission on the rec- ommendation for signs in "AB" zoning. He also stated that he felt that Mr. Morrow's sign should be removed since it is in violation, until a report has been obtained from the Planning Commission. Mr. Donnell urged that this case not be delayed for six months for a report from the Planning Commission. Mr. Linger Morrow, 523 Airline, pointed out to the Council that in this area, there's already located a Church's Fried Chicken and there are 17 "B-1" lots to the south of this property. She also noted that her son's lot is larger than many other "B-1" zoned lots. Mr. Guy Morrow addressed the Council and stated that the illegal sign was installed in October 1982 and the only reason he did not remove the sign when he received the citation was because he was informed that if he had paid $200 for a zoning application and it was pending, he would not have to remove the sign. He also pointed out that he did not really want "AB" zoning because this would not allow display windows and he already has a display window in his shop. No one else spoke in regard to this zoning application. A motion was made by Council Member Kennedy that the hearing be closed, seconded by Council Member Zarsky, and passed unanimously. A motion was made by Council Member Zarsky that "B-1" zoning be ap- proved for Application No. 683-1; seconded by Council Member Gulley. Mr. Utter pointed out that action on this case could be delayed for as tong as six months. Minutes Regular Council Meeting July 20, 1983 Page 27 Council Member Kennedy inquired as to what would happen to the sign if it is delayed that long, and Mr. Utter stated that he feels that the sign would have to be removed. Council Member Zarsky's motion to approve "B-1" zoning was not voted upon. A motion was made by Council Member Kennedy that Application No. 683-1 be tabled for six months or until the recommendation is received from the Planning Commission on signage in "AB" zoned property; seconded by Council Member Hawkins; and passed by the following vote: Jones, Turner, Hawkins, Kennedy and Zarsky voting "aye"; Gulley voting "no"; Dumphy "absent". Mr. Utter asked for direction from the Council, stating that it is his understanding that the staff is to request that the sign be removed for this interim period, and Mayor Jones stated that that is correct. Mr. Connell asked to speak again and stated that since this is a pending application and the sign has been installed in concrete, he urged that the applicant he allowed to retain the sign until a decision has been. made. A motion was made by Council Member Zarsky that the sign be allowed to remain until the zoning application has been resolved. Mr. Utter pointed out that this is a flagrant violation of zoning laws and ordinarily the City does not allow such violations to continue. He pointed out that the property owner knew that he was in violation when he installed the sign and he has known that it was a violation for some time. Council Member Zarsky's motion died for lack of a second. * * * * * * * * * * 48. Application No. 683-5, Mr. Calvin Self: for a change of zoning from "A-1" Apartment /louse District to "1-2" Light Industrial District on Lot 1, Block 1, Self Tract, located on the south side of Graham Road, approximately 1,425' east of Waldron Road. Assistant City Manager Tom Utter stated that both the Planning Commission and Planning Staff recommend denial, but that a special permit for a storage building be approved in accordance with the site plan and the applicant agrees with the special permit. Mr. Wenger located the area on the zoning and land use map, described the land use in the surrounding area, and showed slides of the vicinity. He informed the Council that this property is included in the Flour Bluff Plan and it was determined that the best use for his property is "A-1" except from those existing uses. No one indicated opposition to the issuance of a special permit according to an approved site plan. Minutes Regular Council Meeting July 20, 1983 Page 28 Mr. Calvin Self, 1214 Graham Road, explained that this property is not suitable for "A-1" zoning because of the existence of Exxon's gas plant in the immediate vicinity which operates 24 hours a day and the existence of helicop- ters which fly over this property several times a day. Mr. Wenger informed the Council that this property is not affected by the A.ICUZ Study; this case was heard in December 1981; and the special permit expired because there was no construction and because of the contemplation of the master Flour Bluff Plan. Mr. Max Luther, attorney representing Mr. Jesse Bond and other property owners, stated that he has discussed this with the property owners who have all indicated that they do not want this change of zoning. He noted that although Exxon has owned property in the area for 35 years, the neighbors have become accustomed to it, but they prefer that the remainder of the area remain zoned for single family dwellings. Mrs. Tony Smith, 337 Graham Road, stated that she owns property adja- cent to Mr. Self's lot and they object to the change of zoning because her residence is located on that property. Mr. Jesse Bond, 4106 Tarpoon, also expressed opposition to the change in zoning because they understand that Mr. Self plans the construction of ware- houses and objectionable uses. Mr. Utter informed the Council that the 20% rule is in effect and six affirmative votes will be required to approve this change of zoning. No one else spoke in regard to this zoning case. A motion was made by Mayor Pro Tem Turner that the hearing be closed, seconded by Council Member Hawkins and passed unanimously. A motion was made by Council Member Kennedy that the ordinance be brought forward, seconded by Mayor Fro Tem Turner and passed unanimously. The ordinance granting the zoning for Application 683-5 failed to pass by the following vote: Gulley and Zarsky voting "aye"; Jones, Turner, Hawkins and Kennedy voting "no"; Dumphy "absent". * * * * * * * * * * 49. Application No. 683-8, Mr. Jack Ryan: for a change of zoning from "A-1" Apartment House District and "B-3" Business District to "A-2" Apartment House District on Lot 1R, Block 1, Newport Marina Estates, located on the north side of 5. Padre Island Drive, approximately 1 ,000' west of Bullfinch Street, being 17.33± acres. Assistant City Manager Tom Utter informed the Council that both the Planning Commission and Planning Staff recommended denial and in lieu thereof a special permit be granted for 250 apartment units, in accordance with the approved site plan. Minutes Regular Council Meeting July 20, 1983 Page 29 Mayor Jones ascertained that no one in the audience wished to speak in opposition to this zoning application. A motion was made by Council Member Gulley that the hearing be closed, seconded by Council Member Hawkins; and passed unanimously. A motion was made by Council Member Gulley that the Council concur with the recommendation of the Planning Commission and that Application No. 683-8 be denied but in lieu thereof a special permit be granted for 250 apartment units, in accordance with the approved site plan. The motion was seconded by Mayor Pro Tem Turner and passed unanimously. City Secretary Read polled the Council for their vote on the ordinance and it passed as follows: ORDINANCE NO. 17727 AMENDING TI -!E ZONING ORDINANCE UPON APPLICATION OF JACK RYAN BY GRANTING A SPECIAL COUNCIL PERMIT FOR 250 APARTMENT UNITS ON A PORTION OF LOT 1R, BLOCK 1, NEWPORT MARINA ESTATES; AND DECLAR- ING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Turner, Gulley, Hawkins, Kennedy and Zarsky voting "aye"; Dumphy absent. * * * * * * * * * * City Manager Martin informed the Council that the fire union voted against the proposed contract; there may have to be fact finding which is a six or eight week process. He stated that the essential elements in the contract are a wage increase of 3% with an additional 2% in February of 19814. He reviewed other items included in the contract which was recommended by the negotiating tears. Mr. Martin then stated that they have some questions in regard to the land mass. He stated that with the exception of the two items which the Coun- cil had instructed the staff to negotiate further, he would like to present to them a corrected copy which was approved by second reading. Mr. Martin continued by stating that if the Council would feel more comfortable by having someone from the Urban Office to examine this agreement, he would suggest that the staff attempt to find someone who could provide an opinion of the agreement prior to the final negotiation of the lease. The Council Members indicated their concurrence with this plan. Mayor Pro Tem Turner then referred to a letter that she had received from Mr. Lewis Lovelace in regard to conflict of interest. Mr. Martin stated that in his opinion and that of the City Attorney, the Council Members should abstain from voting only on portions of Bayfront Plans that might directly affect those who own property in that area. Mayor Pro Tem Minutes Regular Council Meeting July 20, 1983 Page 30 Turner indicated that she would like to have in the record the fact that she and her husband own two units only at the Breakers Condominiums and Council Member Kennedy stated that he owns two undeveloped lots on Corpus Christi Beach and that is all. Dr. Kennedy continued by stating that he did vote on the Bayfrcrt Plan, but he does not plan to vote on projects on the beach near any of his property. There being no further business to come before the Council, on motion by Mayor Pro Tem Turner, seconded by Council Member Hawkins and passed unanimously, the Regular Council Meeting was adjourned at 10:30 p.m., Ju- ly 20, 1983.