HomeMy WebLinkAboutMinutes City Council - 10/25/1983 - SpecialMINUTES
CITY OF CORPUS CHRISTI, TEXAS
SPECIAL COUNCIL MEETING
OCTOBER 25, 1983
BAYFRONT PLAZA CONVENTION CENTER, ROOM 225
7:00 P.M.
PRESENT:
Mayor Luther Jones
* Mayor Pro Tem Betty N. Turner
Council Members:
David Berlanga, Sr. City Manager Edward A. Martin
Leo Guerrero City Attorney J. Bruce Aycock
Dr. Charles W. Kennedy, Jr. City Secretary Bill G. Read
**Joe McComb
Frank Mendez
Mary Pat Slavik
ABSENT:
Council Member Herbert Hawkins, Jr.
Mayor Luther Jones called the meeting to order at the Bayfront Plaza
Convention Center and stated that the purpose of the meeting was to discuss
paving assessment policies in connection with street improvement projects.
City Secretary Bill G. Read called the roll of required Charter Officers
and verified that the necessary quorum was present to conduct a legally
constituted meeting.
Mayor Jones then requested that the City Manager provide background
information.
City Manager Martin stated that the purpose of the hearing is to discuss
the policies of the City of Corpus Christi in connection with special assessments
in Community Development Areas. Mr. Martin explained that the City had a
policy for all paving assessments that was in effect up until last spring at
which time, adjustments were made and further adjustments are now proposed.
He referred to his memorandum of September 29, 1983 setting forth the City
Staff recommendation.
SEP 1 91984
MRO-JLMED
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Mr. Martin continued by stating that the concept of special assessments as
allowed within the law is that improvements that take place using the assessment
method involves enhancement of the property which must equal the amount of
the assessments. He pointed out that this method is used all over the United
States. He noted that the City of Corpus Christi has had special assessment
programs for many years and the City had improved many miles of streets and
the assessments collected through those improvements had been used to
construct additional streets.
He noted that there previously was no distinction made between CD and
regular assessment policies. He noted, however, that the current assessment
policy has been changed as far as the CD areas are concerned and the following
items reflect that changed policy:
(1) Assessments are levied according to the use of the property rather
than the actual zoning.
He noted that this is very important because many of the homes in the CD
areas are zoned "AB" or higher.
(2) In CD areas, eligible residents who own and occupy homes may
receive 0% loans through CD funds to pay their assessments. The
loan must be paid at the time the property is sold.
(3) Absentee owners of residential property of one or two-family dwellings
are eligible for 3% loans if the property is rented to low income
families.
He stated that typically, assessments are paid off in five years at 8% loans
but this period of time may be extended to ten years if the owner requests this
and it is determined that the five-year period would present a hardship. Mr.
Martin pointed out that to his knowledge there has never been a case of
foreclosure on a piece of property because of nonpayment of assessments, even
though the property owner is urged to pay the assessment.
Mr. Martin continued by referring to a recent memo in which the City
Staff suggested that the following two changes be considered:
1. In CD areas, that the loan made through CD funds to low and
moderate income families no longer be required to be paid when the
house is sold, but instead, that it will be amortized over a three-year
period if the owner maintains his residence at the location during that
time; and
2. Water lines will be installed according to the same type of policy as in
new subdivisions and the Staff is recommending that the Council
change the policy and no longer assess for new water lines as a part
of the street improvement project.
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He explained that if it is decided that it is necessary for the users to tie
on to the new water line, then the cost of making the necessary plumbing
changes and tapping to provide water service will be the responsibility of the
City. He noted that in CD areas, CDBG funds will be used to make the
necessary changes. He pointed out that if a new water line is installed but
switch overs are not determined to be necessary, then the property owners will
be responsible for plumbing and tapping costs if they choose to switch to the
new line.
* Mayor Pro Tem Turner arrived at the meeting at 7:25 p.m.
City Manager Martin summarized by stating that two of those items are new
-- the no charge water line assessment and the amortization of the loan over a
three-year period. He pointed out that the non -low-income resident will not be
relieved of any assessment payments because the recommendation only deals with
people who will be Section 8 eligible.
Mayor Jones referred to the low income eligibility and asked about the
perameters.
Mr. Martin explained that according to Section 8 guidelines, the following
income levels are in effect at this time: One person family - $11,550; two
persons - $13,200; three persons - $14,850; four persons - $16,500; five
persons - $17,550; etc.
Mayor Pro Tem Turner inquired about the device for qualifying people,
and Mr. Kelly Elizondo, Director of Community Development, explained that the
income data required for the families to submit to his office are: sworn
statements or the 1040 Income Tax Return.
Mayor Jones called on members of the audience to speak on this issue. He
reviewed the Staff recommendations for the changes in the policy and
established a 3 -minute limit for each speaker.
Mrs. Betty Stinson, 910 Booty, protested the installation of a sidewalk too
close to her home, noting that she considers it an invasion of privacy. Mrs.
Stinson pointed out that none of the residents of the Spohn Hospital Area had
requested these improvements; the water now collects under her house; an
engineer assured her that the water would flow over the sidewalks; but this
has not proven to be true. She stated that levying an assessment for her
improvements has presented a hardship for her and she also objected to the 8%
interest. She explained that a few of the residents of the area are not in the
low income bracket and will have to pay their own assessments. She also
objected to the 3% loans granted to absentee landlords who rent to low income
people. She urged that the new Members of the City Council listen to the
people from this area because none of the residents of that neighborhood have
enough money to pay assessments.
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Mr. Leon Perez, 904 Buford, objected to the method of installing the
sidewalks in that they are higher than they used to be and they have made the
drainage worse. He stated that his taxes have been increased and alleged that
the trucks going down this street have damaged the foundation of his house.
He expressed concern that the widened streets will encourage more truck travel
down Buford Street with the resultant additional damage to his house. He
objected to the use of federal funds for other projects in the City and
suggested that such federal grants should be spent for the entire cost of street
improvements. He made reference to the operation of Evanston, Illinois and
stated that they do not install such fine improvements there. He stated that he
cannot pay for the assessments and he has had to go back to work in order to
pay his living costs.
Mr. Jack Gordy, 5802 Everhart, stated that he has empathy for the people
being assessed. He urged that the City adhere to the guidelines established by
the Department of Housing and Urban Development. He expressed the opinion
that other cities in Texas have more concern for the low income residents. Mr.
Gordy also objected to the Staff recommendation, noting that if a lien is placed
against a home, it will be impossible for the property owner to obtain a loan for
other house improvements. He also objected to the use of CD funds to improve
Shoreline, Timon Boulevard and other areas because the money could be used to
totally finance street improvements in low income areas. He stated that all that
the people in this area are requesting is that the City follow the HUD
guidelines.
Mr. Anastacio Hernandez stated that he is handicapped and lives on social
security. He stated that he has lived in this area all of his life, and for many
years from the time he was a small child, he has been promised streets and
sidewalks. He expressed the opinion that the property owners in this area
have paid enough taxes that the City should be able to pay for all of the
streets in this City.
Mrs. Paula Martinez, 2622 Cloyde Street, informed the Council that the
construction company performing the work in their neighborhood broke some of
the curbs. She stated that there are already holes in the sidewalks and they
feel that the contractor performed a very poor job in aligning the driveway.
Mrs. Robert Shaddox, 433 Southern Street, stated that the street on which
she resides was recently improved but the residents had signed a voluntary
paving petition for that work. She stated that she also owns a home at 1319
5th Street which has been rented for many years. She stated that she had
always had her rental complexes leased but since the improvements have begun,
she finds it difficult to keep tenants since there is such disorder created by
the construction. She expressed the opinion that the street improvements will
not allow her to rent the apartments for any more money and that she will not
be eligible for any of the special benefits recommended by the Staff because she
owns more complexes on each piece of property than a duplex. She stated that
she was of the opinion that every property owner should be entitled to the
same special consideration on assessments. She stated that she has five
complexes on her property on 5th Street.
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Mr. Otto Hampton, 401 Dixon Drive, stated that he has been paying taxes
for thirty years. He stated that he had voluntarily signed a petition to have
the street improvement work performed but at the time he signed the petition,
he actually earned $27,000 a year; however, he is now disabled and is living on
social security. He informed the Council that four residents of the
neighborhood have retired since they signed the petitions. He stated that he
does not look forward to having to pay assessments for ten to twenty years.
Mr. Alvin Machalec, 1601 6th Street, stated that he resides at that address
and also has rental property iri the area. He stated that he has been looking
forward to the street improvements, but he has a problem in paying for the
assessments. He stated that most of the people renting from him are low income
families and if he has to pay the assessments, he will have to increase their
rent.
Council Member Slavik asked a member of the Staff about renting to
Section 8 eligible tenants.
City Manager Martin stated that the landowners could obtain a 3% interest
loan if there are no more than two units on each piece of property.
Mr. Machalec stated that most of his property contains duplexes, and Mr.
Martin pointed out that he would be eligible for the 3% loans according to the
income of his tenants.
Mr. Clyde Jackson, 1225 3rd Street, stated that he takes walks in that
area and he feels that the construction work performed is the worst that he has
ever seen. He explained that the curbs are not level and the sidewalks are
cracking already. He suggested that before final payment is made to the
contractor, that the engineers carefully check the work. Mr. Jackson also
suggested that before any more street improvements are planned, the City
ascertain that the people really want the improvements. He expressed the
opinion that these particular improvements are being made for future owners
who might wish to construct multi -family units in the area.
Mr. Cecil Jenkins, 1119 6th Street, referred to the Section 8 income levels
and pointed out how little those incomes are and how difficult it is for the
people to live on that amount. He stated that people are barely existing on
those salaries and they do not need any improvements that they have to pay
for. Mr. Jenkins also remarked on the poor construction work in the Spohn
Hospital area street improvements and the poor drainage that has resulted from
the improvements. He suggested that HUD money be used only for very
necessary projects.
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Mrs. Catalina Martinez, 1309 6th Street, representing the Spohn Hospital
Area Residents Association, expressed appreciation for the public hearing
conducted so that the Council may become aware of the difference of opinion
between the residents and the City Staff. Mrs. Martinez stated that she had
done a lot of research and had found out that in other cities in Texas and in
about 99% of the cities all over the United States, people are not assessed for
street improvements. She stated that her Association is proposing that the
assessment policy be changed to eliminate the assessments in CD areas for all
homestead properties. She mentioned several cities in which there are no
assessments for homesteaded properties, mentioning in particular, Amarillo,
Dallas, Austin, El Paso, Fort Worth, Galveston and even Evanston, Illinois.
She stated that in Houston she had ascertained that their ordinance allows
assessments even in CD areas but there has been a moratorium established on
street improvements because they are having dialogue with the residents of CD
areas in regard to the assessments.
Mrs. Martinez referred to a publication from HUD and stated that the City
of Corpus Christi has the dubious honor of being listed as the only city having
received a waiver to allow for assessments in CD funded areas in order to
relieve the hardship of the City of Corpus Christi. She then referred to the
proposed chance for the three-year amortization and stated that this change
leaves a lot to be desired. She pointed out that a second lien ori someone's
property poses a problem if they attempt to obtain a loan for home
improvements. She also stated that it is very humiliating for some people to
declare themselves Section 8 eligible. She stated that the proposed plan is
similar to the one that is already in effect. She also noted that the letters
explaining the method of applying for the amortization are very confusing to
most residents. She stated that she had even talked with one elderly lady who
withdrew all of her savings in order to pay her assessment because she was not
aware that she had the option of obtaining an interest-free loan. Mrs. Martinez
pointed out that even residents who have a moderate income will be forced to
pay the assessments over a five or ten-year period at 8% interest. She urged
that relief be granted by this City Council.
Mr. J. E. O'Brien, 14130 Pompano, complimented the Council for conducting
this public hearing. He urged that they listen to the people who are speaking
tonight because he felt that this City has shown very little consideration for
the little people and the poor people. He expressed the opinion that the
proposed changes are at least a step in the right direction but he objected to
the expenditure of CD funds to improve Timon and Shoreline Boulevard and
particularly, objected to the expenditure of CD funds for improvements on
Shoreline. Mr. O'Brien also mentioned the $900,000 of CDBG funds for
downtown parking lot improvements and expressed the opinion that that would
in no way help low income people.
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Mrs. Gloria Perez, 1317 7th Street, urged the Council to listen to the
people who have spoken tonight. She suggested that they consider the little
people of this City and not do everything on behalf of developers and
investors. She suggested that assessments be eliminated entirely in CDBG
areas, noting that the residents of her neighborhood did not ask for these
street improvements and most of the people cannot afford the assessments. She
stated that she felt that the new City Council Members should be more lenient
on the people who have worked and paid taxes so long in this area. She
particularly objected to the $90,000 of Community Development Block Grant
Funds allocated for a seafood company.
Mrs. Katy Perez, 1317 7th Street, referred to a statement by Mrs.
Martinez that an elderly person had to use all of her life savings to pay her
assessments. She stated that this is not fair and demonstrated a lack of
communication between the City and the property owners.
Mrs. Juanita Vandemeer stated that she lives on Cole Street and objected
to the assessments for sidewalks which had already been installed by the
telephone company in 1981. She stated that sidewalks on Buford Street were
replaced as a part of these street improvements and she objected to paying for
those assessments.
** Council Member Joe McComb arrived at the meeting at 8:32 p.m.
Mr. Walter Wenger, 1211 6th Street, referred to the poor concrete work
that had been performed by the construction company. He stated that his new
sidewalk already has a crack across it.
Mr. Ernest Carter, 1711 Stillman Street, stated that he does not live in
the area under discussion but he does reside in a low income area in Hillcrest
and he has a great deal of sympathy for these residents. He urged that the
Council be lenient with those individuals who cannot afford their assessments
because he felt that the same thing would happen in the future in the Hillcrest
area.
Mr. Agapito Torres, 508 18th Street, stated that he resides in the Lamar
School area and that he had attended meetings in his neighborhood in which
three schools are located. He stated that he had discussed improvements in
their area with Mr. Kelly Elizondo and he saw no need for improvements
because on Agnes Street which is in his neighborhood are located a number of
bars and patrons of those bars go down streets in their neighborhood such as
Mary, Marguerite, 17th and 18th Streets. He stated that they would like to
have improvements in their neighborhood but there are a lot of elderly and low
income people in the area who could not pay their assessments. He stated that
the area he referred to is bounded by 19th, Agnes, Mary Streets and the
Crosstown Freeway.
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Mr. Gene Bouligny, 309 Santa Monica, stated that he owns rental property
in the Spohn Hospital Area and he was of the opinion that there was no equity
or fairness for the people who are poor. He noted that most of his tenants are
in the low income category and he felt that it was unfair to charge him with the
assessments since the expense will have to be passed on to the tenants by
increasing their rent.
Mr. Ray Madrigal, 3002 Churchill, stated that street improvements had just
recently been completed in his neighborhood. He stated that a new water line
had been installed and most of the people in his area will have difficulty paying
the assessments. He encouraged the Council to vote against any assessments.
Mr. Lewis Lovelace, 1549 Casa Grande, stated that he would like to
relinquish his three minutes to Mr. Perez.
Mr. Leo Perez, 902 Buford, stated that he had actually completed his
statement but inquired as to how their assessment bills can be paid.
Mayor Jones explained that the payments can be made in cash after
completion of the project or they may be paid over a five-year period at an
interest rate of 8%, or in the event of a hardship, that time may be extended to
ten years.
Mr. Perez also complained that the police are never seen in that area and
he is of the opinion that the residents are not receiving services that they pay
for.
Mrs. Stella De Los Santos, 1318 Furman Street, expressed appreciation for
the public hearing conducted at night. She informed the Council that they had
not requested the improvements and questioned whether they are actually
improvements. She pointed out that the drainage has been much worse since
the streets were improved and the sidewalks are already cracked.
One of the Council Mernbers inquired about the contractor, and Mr. Smith
stated that A PC C O is the contractor for that project.
A Mr. Rodriguez, 2409 Cloyde Street, stated that the improvements have
been completed in his neighborhood; he has made two payments; and his
driveway is already cracked. He requested that a Staff member from the City
check his driveway, and Mayor Jones assured him that someone would examine
it.
Mr. Margarito Pena, 2718 Niagara, also complained about the condition of
his driveway after the street improvements were completed. He asked that it
be checked also. He also noted that the street floods now whereas it did not
before, and Mayor Jones stated that someone would check his property as well.
Mrs. Domingo Palomo, 2533 Lynch Street, stated that her driveway was
also cracked after the work was completed in April. She stated that no one
had gone by to check it.
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Mr. Leroy Mitchon, 2334 Riggan, stated that he also owns property at 2405
Riggan. He stated that the drainage is very poor since the area was improved
and asked that someone inspect it also.
No one else spoke in regard to the assessments.
A motion was made by Mayor Pro Tem Turner that the hearing be closed,
seconded by Council Member Kennedy and passed unanimously.
Council Member Kennedy pointed out that statements had been made that
presented several problems with which the Council must deal. He referred to
the homestead and the multi -housing and stated that he would like to recommend
to the Staff that the privilege of obtaining a 3% loan by absentee landlords not
be limited to those who own one or two-family dwellings. He stated that he
would also like to suggest that assessments not be charged any property owner
whose house has been homesteaded.
Council Member Berlanga stated that he is very concerned that Corpus
Christi is the only city that assesses property owners where CDBG funds are
used for street improvements.
A motion was made by Council Member Berlanga that the City exempt from
assessments property that has been homesteaded only in areas where CDBG
funds are used.
Mayor Pro Tem Turner expressed the opinion that the public hearing had
been very valuable. She stated that, based on what she has heard during the
meeting, she would like to see the following things addressed: (1) the Staff
perform a good job of checking on the quality of the work in the various areas
and (2) that the Council consider waiving assessments for homesteaded
properties for income eligible persons in the CDBG funded projects.
Council Member Guerrero stated that he approved of dismissing the liens
on the homesteaded property, but he was of the opinion that property owners
who have adequate incomes should still pay their assessments even in the CDBG
funded areas.
Council Member Mendez indicated his concurrence, stating that he felt that
the City should eliminate the amortization over the three-year period which has
been recommended by the Staff. He expressed the opinion that a policy should
be established to apply to other projects that are funded by CDBG funds. He
also expressed concern about the bad drainage that had been reported by the
speakers. He agreed with Council Member Guerrero that the policy that they
need to establish should address the property owners who qualify for Section 8
low income according to the HUD guidelines. He agreed that the people who
can afford to pay for assessments should be required to do so.
Mayor Jones inquired about the method of calculating low income owners,
and Mr. Kelly Elizondo stated that the City uses the HUD guidelines to
determine income eligible persons and areas.
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Council Member Slavik expressed concern about the inferior and poor
quality work as reported by a number of speakers. She asked that the Staff
investigate the complaints registered by those who reported cracked sidewalks,
etc.
City Manager Martin stated that Mr. Gerald Smith had noted those names
and plans to check the work.
Council Member Berlanga suggested that these older areas of the City
should have their assessments eliminated because of the length of time they
have been paying taxes.
Mayor Jones stated that most of the Council Members indicated that there
should be a homestead waiver.
Council Member Berlanga again made a motion that all of the people who
have homesteads in the CDBG areas should not have to pay assessments.
Council Member Guerrero reiterated that he felt that there should be a
qualifying factor in that they should be income eligible according to Section 8
guidelines.
Council Member Berlanga stated that his motion was to eliminate
assessments for all people whose property has been homesteaded.
Mayor Jones declared that Council Member Berlanga's motion died for lack
of a second.
A motion was made by Council Member Kennedy that the homestead
exemptions in the CDBG area for low income families which would be established
according to the Section 8 guidelines be relieved of paying assessments and that
all property owners who have multi -family dwellings rented to low income
families be allowed to take advantage of the 3% loans to pay their assessments.
The motion was seconded by Mayor Pro Tem Turner.
City Manager Martin asked for an explanation and inquired about the
meaning of "no assessments". He asked if the Council intended for those
people who are eligible and have their homes homesteaded if CD grants will be
provided to pay their assessments.
The Council indicated that that is what their intention was.
Council Member Guerrero pointed out that if the change is approved to
allow absentee landlords of all multi -family dwellings of all sizes to avail
themselves of the 3% loans, he felt that the result would be an onslaught of
slums.
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City Manager Martin stated that he would like to clarify the Council's
intention and noted that there would be an assessment against the property but
if the property owner has a homestead and is income eligible to receive a grant
of CD funds, that property would be exempt from liens against it.
Mayor Jones called for the vote on the motion.
Council Member McComb noted that he concurred with Mr. Guerrero's
observation about the multi -family dwellings all being included. He asked that
rather than one motion that this be made into two motions because he did not
feel he could vote affirmatively on both portions.
Council Member Kennedy agreed to make the motion into two motions.
Mayor Jones clarified the motion pertaining to single-family dwellings and
stated that the motion was that if property is homesteaded in the Community
Development Area and the property owner is income eligible, a lien will not be
placed on the property for the improvements.
The motion passed by the following vote: Jones, Turner, Guerrero,
Kennedy, McComb, Mendez and Slavik voting, "Aye"; Berlanga voting, "No";
Hawkins, "absent".
Mayor Jones then clarified the second portion of Dr. Kennedy's motion to
the effect that the owners of one and two-family rental dwellings be expanded
to include all multi -family housing if the tenants meet the income eligible status
which would make the property owners eligible for 3% loans.
Mayor Pro Tem Turner seconded this motion.
Council Member Kennedy asked the City Manager if he had any idea about
the number of pieces of property this would involve.
City Manager Martin replied that the Spohn Hospital Area consists of
approximately 60% rental properties. He suggested that possibly, a certain
number could be designated.
Mr. Guerrero again expressed concern because he felt that there is a need
to protect the neighborhoods so that they will not become rundown, slum areas.
Council Member Slavik inquired if the Council could consider each area
individually because this is a different situation in the Spohn Hospital Area
from other areas of the City.
Council Member Kennedy suggested that since they are unsure about the
size that should be specified, possibly a six-plex could be the limitation.
After a short discussion, Council Member Kennedy withdrew the second
portion of his motion until more Staff information is available.
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City Manager Martin stated that there are a few complexes with ten or
eleven units but most of them seem to be approximately five -unit complexes.
Council Member Kennedy then made a motion to change the one or
two-family designation for the purpose of 3% loans for the landlords to a
six-plex or less.
Mayor Pro Tem Turner seconded the motion.
Council Member McComb pointed out that even though Spohn Hospital Area
and Furman Area had been mentioned, what is actually happening is that the
Council is establishing a policy for all CDBG areas. He suggested that a
city-wide policy be established after consideration.
Mayor Jones reviewed the motion stating that the Staff recommendation that
in CD areas absentee owners of residential property be changed to specify
six-plex or less to be eligible for low interest loans at 3% to pay the assessment
if the property is occupied by low income tenants.
Mayor Jones called for the vote on the motion and it failed to pass by a tie
vote: Turner, Kennedy, Mendez and Slavik voting, "Aye"; Jones, Berlanga,
Guerrero and Mendez voting, "No".
A motion was made by Council Member Kennedy that the remainder of the
Staff recommendation be adopted as listed below, seconded by Council Member
Guerrero:
1. Street, sidewalk and water line improvements are assessed to the
property owners in all areas of the City with the City using bond
funds, Community Development funds and/or Urban Systems funds for
its share of the project.
2. The City's share of the project varies from 70% to 85% depending on
how much commercial versus residential property is present in the
project. Commercial property is assessed at a higher rate than
residential property as shown in Attachment "A".
3. In CD areas, assessments are based on the use of the property at the
time of the project rather than necessarily on the zoning. If a
property is utilized for residential purposes at the time of the
project, then the assessment will be at the residential rate. In
non -CD areas, assessments are based on the zoning of a property.
4. In CD areas, owners whose property is homesteaded who are income
eligible according to Section 8 guidelines, will have their assessments
paid from CDBG funds.
5. There will be no assessments for water line installation as a part of
street improvement projects.
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The motion passed by the following vote: Jones, Turner, Guerrero,
Kennedy, McComb, Mendez and Slavik voting, "Aye"; Berlanga voting, "No";
Hawkins, "absent".
City Manager Martin informed the Council that the last time a change in
policy was made, the Council made a decision as to which projects it should
affect. He suggested that the following projects be included in this change of
policy: Washington -Coles Area Street Improvements 2 E 3, Tracy Addition
Street Improvements and Spohn Hospital Area Street Improvements.
There being no further business to come before the Council, on motion by
Council Member Kennedy, seconded by Council Member McComb and passed
unanimously, the Special Council Meeting was adjourned at 9:35 p.m., October
25, 1983.
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