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HomeMy WebLinkAboutMinutes City Council - 05/20/1986PRESENT: Mayor Luther Jones Mayor Pro Tem Dr. Jack Best Council Members: David Berlanga, Sr. Leo Guerrero *Joe McComb Frank Mendez Bill Pruet Mary Pat Slavik Linda Strong MINUTES CITY OF CORPUS CHRISTI, TEXAS REGULAR COUNCIL MEETING MAY 20, 1986 2:00 P.M. Acting City Manager Ernest Briones City Attorney Hal George Assistant City Secretary Dorothy Zahn Mayor Luther Jones called the meeting to order in the Council Chamber of City Hall. The invocation was given by Council Member Mendez, following which the Pledge of Allegiance to the Flag of the United States was led by Miss Lindsay Lambert of Chula Vista Fine Arts Elementary School. Assistant City Secretary Zahn called the roll and verified that a quorum of the Council and the required Charter Officers were present to conduct the meeting. A motion was made by Council Member Pruet that Council Member McComb be excused from the Regular Meeting; seconded by Mayor Pro Tem Best; and passed unanimously. A motion was made by Council Member Slavik that the minutes of the Regular Meeting of May 6, 1986, be approved as presented; seconded by Mayor Pro Tem Best; and passed unanimously. * * * * * * * * * * * * * Mayor Jones presented retirement plaques to the following employees: Name: Department: Years of Service: Estevan Garcia Engineering 30 *Martha Chadd Finance 29 Elisero Guerrero Transit 33 *Unable to attend meeting. MICROFILMED riinutes Regular Council Meeting May 20, 1986 Page 2 * * * * * * * * * * * * * Mrs. Betsy Lambert stated that the students of Chula Vista Fine Arts Elementary School had prepared a magazine "Pot of Gold" and would like to present it to the Council. Miss Lindsay Lambert, Miss Katherine Lambert, and Mr. William Terral, who designed the cover of the magazine, presented copies to the Council. * * * * * * * * * * * * * Mayor Jones and Council Member Pruet presented Certificates of Commendation to the following for business of the month: W. L. Dinn & Co., Inc., small business, Mr. Loyd Neal Jr., Chief Executive Officer; Corpus Christi Area Teachers Credit Union, medium business, Mr. David V. Whitehurst, Chief Executive Officer; and Southwestern Bell Telephone Company, large business, Mr. Ron Maples, District Manager. * * * * * * * * * * * * * Mayor Jones announced the bid opening on the following project: Gollihar Road Water Storage Tank: The proposed work includes minor repairs, sandblasting and painting of the interior and exterior of the tank, and modifications to the balcony and ladder system to meet current OSHA requirements. Funds for this work are available in the Water Division Operating Budget. Assistant City Secretary Zahn informed the Council that one of the bids had been received in a City department; it had been opened and resealed by this department; and mailed through interoffice mail to the City Secretary's Office. She stated that no one in the Engineering Department or City Secretary's Office has seen the bid. The Council, on the advice of City Attorney George, ruled that the bid should be opened and read. Assistant City Manager James K. Lontos opened and read bids from the following companies: George Kountoupes Painting Co.; Northwest Bridge & Tank Co.; Peacock General Contractors; Tenyer Coatings, Inc.; and Travis Industrial Painters. Mayor Jones stated that the bids would be tabled for 48 hours for tabula- tion and recommendation pursuant to the requirements of the City Charter. * * * * * * * * * * * * * Mayor Jones announced a report from the Harbor Lights Committee. minutes Regular Council Meeting May 20, 1986 Page 3 Mr. Harry Plomarity stated that the committee is ready to officially launch a fund raising project for the lighting of the harbor bridge; the highway Department will officially act on this next week; and they plan to raise $50,000 through private donations. Mr. Lev Prichard then presented a check in the amount of $1,000 to Mr. Plomarity. Mr. Plomarity thanked Council Members Strong and Berlanga and members of the Central Business District for their involvement in this project. He stated that this will be an attraction to Corpus Christi unequal to any other City. Council Member Strong stated that funds were available from the State for this project and Representative Hugo Berlanga was very helpful in obtaining them for this purpose. * * * * * * * * * * * * * Mayor Jones called for confirmation of the following Board & Committee appointments: a. Coastal Bend Health Facilities Development Corporation: (Term to 4/1/88; all reappointments) Jack Solka Jacob Munoz Nancy Bowen b. Commission on Literacy: Educational Institution: Lupe Rangel Robert D. Campbell Katherine Conoly Jo Sturm David Bonilla (3 -year terms to 6/01/89) Jaime L. Capelo, Jr. Nancy Snouffer Educational Institution: (2 -year terms to 6/1/88) Paul Cameron Rheba A. Jones Dr. Veronica Guerra Ester Reed Janet Harper Other Organizations: (3 -year terms to 6/1/89) Gary Gutman Cecil Burney Jane Kratzig Mary Gleason Barbara Silverman ninutes Regular Council Meeting May 20, 1986 Page 4 Other Organizations: (2 -year terms to 6/1/88) Oralia M. Rios Joe Cohn Gladys W. Neu Marcia Lawson Norman Stewart Jane Kratzig, CHAIRMAN (Designated by the Mayor and confirmed by the Council) A motion was made by Council Member Guerrero that the appointments be confirmed; seconded by Council Member Mendez; and passed unanimously. * * * * * * * * * * * * * A motion was made by Council Member Guerrero that the following action from the workshop session be approved; seconded by Council Member Mendez; and passed unanimously: Directing the Planning Commission to move forward with their adopted procedure and prepare the comprehensive plan as per the charter. The Planning Commission will consider input from the public including CC'90. * * * * * * * * * * * * * Mayor Jones called for consideration of the following consent motions, items 1 through 7. 1. Granting easements to Corpus Christi Office Building Limited Partnership, owner of the Government Plaza, to authorize minor encroachments of the building and parking garage into the public rights-of-way of Mesquite, Mann, and North Chaparral Streets adjacent to Lots 1, 2, 10, and 12, Block 27, Beach Portion, with the provision that the easements will terminate if the buildings are removed. A fee of $500 is recommended for the easement grants. 2. Accepting the Parker Park Improvements and Community Center project and authorizing final payment of $21,884 to J. H. Chapman Construction Company. This project, which is being funded from 8th and 9th Year Community Development Block Grant Funds, provided for the construction of a 3,700 square foot community center and a 14 space parking lot in Parker Park. The total cost of the work performed is $202,698. 3. Accepting the H.E.B. Tennis Center Court Repairs and authorizing final payment of $4,042.76 to Coastal Plains Sales and Service, Inc. The total cost of the work performed on this project, which is being funded by the Park Department Operating Budget and Park Bond Funds, is $40,427.62. rdnutes Regular Council Meeting May 20, 1986 Page 5 4. Approving the following actions on the IH -37 Utility Adjustments, Phase A project: a. Change Order No. 5 in the amount of $30,656.36 be approved which reconciles final unit bid item quantities, authorizes hydromulch seeding of property where easements were acquired, and authorizes payment of $12,074 as settlement of two claims submitted by the contractor for extra work. b. The project be accepted and final payment of $100,708.33 be authorized to Claude Chapman Construction Co., Inc. The total cost of this project, which provided for the relocation of 12" and 36" water lines crossing IH -37 near Sharpsburg Road to clear future interstate highway construction, is $841,834.11. The cost of the work is reimbursable by the State of Texas. *5. A¢16td4t1il kAkbkl kba(il leVddilflildddi/ddd Iddd /41tMbftitlgl khkl krkkkOk/ ldf/ lNYdd 1611 d114/Xyl/40Mltbil,Flak/AkkkkOhfhbhlXa llsldiYildaWlsWWildlYdIA14/84t444Y1hia U$dt,bt4t61/A6kbtU/bkoklkbk/ ldf/Ala'd'ddludYddd/UdiVd/414/Z4ghii4 $$bt44//Uddd//I/Dtli/dlhlkllX0t8/lfd4/lldchiJddilddl/XWkAlo¢& b&//MbkXJ/Ot41t Otdt46t1 *Withdrawn - See page 6. 6. Authorizing the use of $49,500 of the remaining funds from the Water Meter Exchange Program for the purchase of 3,000 additional water meters. This will conclude the purchase of residential meters for the Water Meter Exchange Program. Upon installation, a total of 40,000 meters will have been replaced. 7. Amending Motion No. M86-0132 and adjusting ground rental rates at Corpus Christi International Airport to 9.25 cents per square foot per year for improved and 3 cents per square foot per year for unimproved land; and adjusting fuel flowage fees to 6.25 cents per gallon. All other provisions remain unchanged. Council Member Mendez referred to item 5, approving plans for receipt of bids for Gateway Park Subdivision Sanitary Sewers. He stated that CDBG funds in the amount of $150,000 are to be used for this project and he does not recall this appropriation being approved from CDBG funds. He stated that funding should be from the Sanitary Sewer Bond Fund and that CDBG funds should be used in areas of extreme need. Mr. Lontos explained that the Council would not be appropriating money from CDBG at this time; it was the staff's desire that this project be partially funded with CDBG funds; and after receipt of bids, a funding decision could be made. Mr. Kelly Elizondo, Director of Housing and Urban Development, stated that funds were not specifically set aside for this project, but rather, funds in the amount of $200,000 were designated for sanitary sewer projects. inutes Regular Council Meeting May 20, 1986 Page 6 Council Member Mendez stated that there are other areas that are more blighted where this money could be used, and Council Member Strong countered that this is also a blighted area. Mr. Elizondo reiterated that $200,000 was set aside for these types of projects and were not specifically identified. Acting City Manager Briones stated he would review funding to see if it would be possible to fund this project through the Sanitary Sewer Bond Fund and this item would be listed on the agenda next week. There were no comments from the audience; a motion was made by Council Member Guerrero to approve items 1 through 4, 6 and 7; seconded by Council Member Pruet; and passed unanimously. * * * * * * * * * * * * * Mayor Jones called for consideration of the Consent Ordinances, items 8 through 15a; there were no comments from the audience; Assistant City Secretary Zahn polled the Council for their vote; and the following ordinances were approved. 8. ORDINANCE NO. 19315 AMENDING COMPENSATION ORDINANCE NO. 8127 BY DELETING SECTION 709, CITY MANAGER COMPENSATION/EMPLOYMENT BENEFITS; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the ordinance passed as follows: Jones, Best, Berlanga, Guerrero, Mendez, Pruet, Slavik, and Strong voting "aye"; McComb absent at the time the vote was taken. 9. ORDINANCE NO. 19316 REPEALING ORDINANCE NO. 16831, DATED JANUARY 20, 1982, AND TRANSFERRING THE FUNDS ESTABLISHED BY THE TRUST FUND TO THE GENERAL FUND; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the ordinance passed as follows: Jones, Best, Berlanga, Guerrero, Mendez, Pruet, Slavik, and Strong voting "aye"; McComb absent at the time the vote was taken. 10. ORDINANCE NO. 19317 REPEALING ORDINANCE NO. 19238; RETAINING SUSAN BAERG EPSTEIN, LTD. AS CONSULTANT FOR PURCHASE OF AUTOMATED SYSTEM FOR THE CORPUS CHRISTI PUBLIC LIBRARIES; APPROPRIATING $15,000; AND DECLARING AN EMERGENCY. .,inutes Regular Council Meeting May 20, 1986 Page 7 The Charter Rule was suspended and the ordinance passed as follows: Jones, Best, Berlanga, Guerrero, Mendez, Pruet, Slavik, and Strong voting "aye"; McComb absent at the time the vote was taken. 11. ORDINANCE NO. 19318 CLOSING THE HEARING ON ALLEYWAY IMPROVEMENTS FOR THE FOLLOWING ALLEY: GRAY VILLAGE ADDITION, NORTH OF BLOCK 3, FOR 300 LINEAR FEET BEHIND OMAHA APPLIANCE COMPANY AND TV CHANNEL III PROPERTIES; FIXING A LIEN AND CHARGE, THE MANNER AND TIME OF PAYMENT AND COLLECTION; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the ordinance passed as follows: Jones, Best, Berlanga, Guerrero, Mendez, Pruet, Slavik, and Strong voting "aye"; McComb absent at the time the vote was taken. 12. ORDINANCE NO. 19319 APPROPRIATING $6,500 OUT OF 220 STREET PUBLIC ALLEY IN BLOCK 3, GRAY VILLAGE DECLARING AN EMERGENCY. The Charter Rule was suspended and the Best, Berlanga, Guerrero, Mendez, Pruet, absent at the time the vote was taken. 13. ORDINANCE NO. 19320 BOND FUND ADDITION, ordinance Slavik, and FOR PAVING A PORTION OF A AND FOR TESTING FEES; AND passed as follows: Jones, Strong voting "aye"; McComb AMENDING ORDINANCE NO. 19279, DATED APRIL 22, 1986, GRANTING A SPECIAL PERMIT FOR A DENTAL LABORATORY UPON APPLICATION OF TOMMY CUMMINS, BY CORRECTING THE LEGAL DESCRIPTION TO READ LOT 16, BLOCK 22, WINDSOR PARK UNIT 4; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the ordinance passed as follows: Jones, Best, Berlanga, Guerrero, Mendez, Pruet, Slavik, and Strong voting "aye"; McComb absent at the time the vote was taken. 14. SECOND READING AMENDING CHAPTER 35, OIL AND GAS WELLS, SECTION 35-100, STORAGE FACILITIES, OF THE CITY CODE, TO REQUIRE THAT EACH OIL AND GAS SEPARATOR OPERATING AT A PRESSURE LESS THAN 250 PSI BE EQUIPPED WITH A PRESSURE RELIEF SAFETY DEVICE AND EACH OIL AND GAS SEPARATOR OPERATING AT A PRESSURE OF 250 PSI OR GREATER BE EQUIPPED WITH AT LEAST TWO PRESSURE RELIEF SAFETY DEVICES, ONE OF WHICH MUST BE A PRESSURE RELIEF SAFETY VALVE; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION. The ordinance was read for the second time and passed to third reading as follows: Jones, Best, Berlanga, Guerrero, Mendez, Pruet, Slavik, and Strong voting "aye"; McComb absent at the time the vote was taken. riinutes Regular Council Meeting May 20, 1986 Page 8 15. THIRD READING - ORDINANCE NO. 19321 AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE A CONTRACT BETWEEN THE CITY OF CORPUS CHRISTI AND E.H. MOORE HOMES, INC. FOR THE ANNEXATION OF APPROXIMATELY 10.93 ACRES OF LAND BEING OUT OF LOTS 23 AND 24, SECTION 6, FLOUR BLUFF AND ENCINAL FARM AND GARDEN TRACTS, 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 ordinance was read for the third time and passed as follows: Jones, Best, Berlanga, Guerrero, Mendez, Pruet, Slavik, and Strong voting "aye"; McComb absent at the time the vote was taken. 15a. RESOLUTION NO. 19322 INVITING THE CITY OF KEELUNG, TAIWAN, TO BECOME A SISTER CITY OF THE CITY OF CORPUS CHRISTI, TEXAS, AND CONVEYING THE WARMEST REGARDS AND DEEPEST FRATERNAL SENTIMENT OF THE PEOPLE OF CORPUS CHRISTI TO THE PEOPLE OF KEELUNG; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the ordinance passed as follows: Jones, Best, Berlanga, Guerrero, Mendez, Pruet, Slavik, and Strong voting "aye"; McComb absent at the time the vote was taken. * * * * * * * * * * * * * Mayor Jones called for consideration of the following item: 16. Authorizing the City Manager to negotiate a solid waste resource recovery contract with JAM -TEX-MEX Corporation, said contract to be in accordance with the request for proposals approved by the City Council on November 26, 1985, and subject to the condition that negotiations be completed and said contract be approved by the City Council and signed by September 30, 1986; and further authorizing negotiations with Montaney Power Corporation/Energy Transfer Incorporated for a similar four month period if JAM -TEX-MEX Corporation withdraws from negotiations or if a signed contract with JAM -TEX-MEX Corporation is not achieved by September 30, 1986. Four proposals were received, and a committee of City staff is recommending selection of JAM -TEX-MEX Corporation as first choice and Montaney Power Corporation/Energy Transfer Incorporated as second choice, based on review of the proposals, interviews, and research by the committee. Assistant City Manager Bill Hennings stated that the Council reviewed a solid waste disposal study prepared by a staff committee in 1984 and approved the recommendations in that study. The Council authorized Requests for Proposals for resources recovery project with two criteria; one, cost should not be increased; and two, that the City retain the ability to use the landfills when necessary. ..inutes Regular Council Meeting May 20, 1986 Page 9 Mr. Hennings stated that four proposals were received January 27, 1986; the proposals were reviewed and measured against the criteria; and a thorough analysis was made. He stated that interviews were conducted on March 13 with three firms; references were checked; and a conclusion was made that the economy was not favorable in 1984 for a project of this type. He stated that based on the history of other projects in the country, cost will be high, usually ten times more than the cost of regular garbage. He stated that many companies did not bid because the City has an inexpensive landfill and low energy costs. He stated that staff is recommending that the Council authorize the negotiation of a contract with Jam -Tex-Mex Corporation. He stated that their proposal was the most complete and thorough, and they have already purchased a site next to the landfill. He stated that they propose a compost operation which is advantageous in that it does not pose any pollution problems like incinerators do and it would take advantage of sewer sludge which currently makes up about seven to eight percent by weight of the input to the City's sanitary landfills. Mr. Hennings stated that the recommendation is to proceed with negotiations for a contract to be submitted to the Council for a resource recovery operation according to the criteria set out in the request for proposals, subject to the condition that a contract be completed and signed by September 30, 1986. He stated that if Jam -Tex-Mex withdraws from negotiations or if a signed contract is not achieved by September 30, 1986, then negotiations commence with Montaney Power Corporation/Energy Transfer Incorporated for a similar four month period to attempt to achieve a contract. Council Member Slavik inquired if there would be an odor from this operation. Mr. Hennings stated that that is a concern; the entire operation will be enclosed; Jam -Tex-Mex has assured the staff that there will not be an odor problem; but the staff will need better assurance than just their word. Council Member Berlanga inquired if the garbage would be separated before it goes through the process. Mr. Hennings explained that they would use all of the garbage; it would produce no residue; and there would be no outside storage. Mr. Hennings then explained that garbage would go through a shredder if an incinerator process were to be used. Council Member Pruet asked what was the City's current garbage tonnage, and Mr. Hennings stated that it is estimated to be 500 - 550 tons per day. Council Member Pruet noted that the proposal requires a minimum of 500 tons per day and inquired if the City would have to pay the difference if the minimum is not reached. ..inutes Regular Council Meeting May 20, 1986 Page 10 Mr. Hennings stated that that is customary, but through the negotiation process, they will try to eliminate that. Mayor Jones stated that he felt a compost system would cause odor. Mr. Hennings stated that this was researched and there are techniques that can be used to control odor, and this will be addressed in the negotiations. Mayor Jones inquired if the staff felt the City should invest time and money into the project and if it held sufficient promise, and Mr. Hennings replied in the affirmative. Council Member Berlanga asked what the total investment of the City would be, and Mr. Hennings stated that the City would have zero investment -- just staff time. A motion was made by Council Member by Council Member Strong. Guerrero to approve Mayor Jones called for comments from the audience. the item; seconded Mr. Benny Martinez, 1525 Antigua, representing SECO, stated that SECO would like an opportunity to participate in the negotiations. Mr. Hennings stated that there were compared to Jam -Tex-Mex and Montaney. He operations, Montaney is the strongest firm differences in the SECO proposal as stated that in terms of incinerator that uses that approach. Mayor Jones inquired that if negotiations are not successful, could this project be put on a competitive basis, and Mr. Hennings stated that it would be the Council's decision. Council Member Berlanga clarified that the basis of the staff's decision was that Jam -Tex-Mex uses a compost operation, not incinerator, and that their proposal was more thorough. Council Member Guerrero inquired if the fact that Jam -Tex-Mex had purchased the adjacent property to the landfill had any influence on the staff's decision, and Mr. Hennings stated that that was part of the completeness of the proposal. In response to a question from Council Member Guerrero, Mr. Ernest McGhie, President, Jam -Tex-Mex Corporation, stated that he purchased the property for $230,000. Mayor Jones called for comments from the audience. Mr. Ervin Dietz stated that the staff should be commended for their work on this project. ..inutes Regular Council Meeting May 20, 1986 Page 11 Mr. Clay Moore stated that it would be possible to obtain methane out of the compost in addition to fertilizer. Mr. McGhie stated that he has been studying the process to obtain methane and when he reaches a point of conclusion, he will put this process in motion and prove that garbage can be processed profitably and safely in the community. Mr. McGhie stated that he will also produce cardboard. He stated that he is looking forward to working with the City and feels this will be a great benefit to the City. Mayor Jones inquired if sludge could be forced through a pipeline to Mr. McGhie's facility, and Mr. McGhie stated that he understood it would be trucked to the property and put through the process, but this could possibly be arranged. Council Member Guerrero inquired if his products would be shipped to Saudi Arabia, and Mr. McGhie stated that there is a request from Saudi Arabia for this and also requests from California, Jamaica, and several other areas. Mayor Pro Tem Best inquired why Mr. McGhie chose Corpus Christi as the location for his company, and Mr. McGhie stated that Corpus Christi is a very charming, seaport City and his company needed to be in close proximity to port facilities. There were no further comments; the motion to approve item 16 passed unanimously. * * * * * * * * * * * * * 17. Consideration of an appeal of the Building Standards Board order concerning the building at 2861 Lawnview. (Attachment #18) Mr. Ezequiel P. Elizondo, Director of Housing and Urban Development, informed the Council that the attorney representing the owner of this building, Mr. Herbert Hawkins, Jr., had contacted the City Secretary's office by telephone and requested a delay of this item due to the fact that he is out of the City in court. Mr. Adan Sedillo, Assistant to Mr. Hawkins, confirmed that they would like to have the appeal delayed. A motion was made by Council Member Guerrero that this appeal be delayed one week; seconded by Council Member Slavik; and passed unanimously. * * * * * * * * * * * * * 18. Consideration of an appeal of the Building Standards Board order concerning the building at 1919 Mestina. riinutes Regular Council Meeting May 20, 1986 Page 12 Mr. Elizondo explained the actions taken in regard to this property, stating that they had received a complaint on the condition of the building; the staff identified it as a substandard structure; an on-site inspection was conducted; a notice was sent to the owners of record by certified letter; and the notice includes the specific violations that need to be corrected. He stated that if actions are not taken to comply, his department proceeds with the required notification, including publication of the appropriate notices in the newspaper. He provided the dates on which these procedures were followed in connection with this particular property. Mr. Elizondo continued by stating that the case was heard by the Building Standards Board on March 14, 1986, and they unanimously adopted the staff's recommendation that the owner be given 30 days to have the building vacated and an additional 30 days to start repairs or demolition. He explained that if repairs were started, an additional 90 days would be allowed to complete the repairs to City Code standards. He stated that staff feels that the Board's ruling was correct and then showed slides of the house in question depicting its condition and deterioration. He stated that during the hearing before the board, a representative appeared and the board granted a delay. Mr. Daniel Garcia, co-owner of the building, informed the Council that this piece of property contains a home which was constructed in the late 1920's or early 1930's; an operation of Loaves and Fishes was located in the neighborhood for some time; vagrants started using the house and deterioration occurred; but since Loaves and Fishes has relocated, there has been no problem with vagrants. Mr. Garcia continued by stating that he did not agree that he should have to comply with the requirements of bringing the foundation of the house up to Code; redoing the interior walls of the house; and installing a new roof. He then asked that the Council either concur with the staff recommendation and grant those exceptions, or grant him an extension of two years in which to bring the house up to Code. He indicated that he did not have the money to do so at this time, and assured the Council that he has no intention of renting it or allowing it to be occupied. Council Member Strong pointed out that the Council has been concerned about the large number of substandard houses in this City and expressed the opinion that it is imperative that the City Council not allow substandard housing to continue to exist. Mayor Jones expressed the opinion that two years is too long a period of time, and Council Member Slavik asked Mr. Garcia if he could correct the most obvious violations in a shorter period of time. Mr. Garcia stated that he did not think so. minutes Regular Council Meeting May 20, 1986 Page 13 Mr. Elizondo stressed that the house is in violation of several sections of the Code, but one of the key items is the foundation; the photographs indicate that the beam system is inadequate, and staff feels that the foundation should be addressed before any other repairs are made to the house. He agreed that bringing the house into compliance with the Code would be a major effort. Mr. Elizondo also stated that staff does not have the authority to waive all of the items which Mr. Garcia feels should be waived. He noted that the owner could have the house moved outside the City limits if he does not want to make the repairs. Council Member Mendez pointed out that the City had condemned 300 substandard homes; the Council is making a concerted effort to improve our City; and he felt that this owner has already had 5 or 6 months to repair the house. He suggested that 6 additional months should be the maximum extension. Council Member Berlanga agreed that Mr. Garcia should be granted 6 months to accomplish the urgent repairs, and if he has completed 50% of those repairs at the end of that time, the Council might consider granting him an additional 6 months. Mr. Elizondo explained that Mr. Garcia is very close to losing his investment because he presently has an "R -1B" use in an area zoned "I-2", and if he does not bring it up to Code, it is possible he would lose his right to retain the house. A motion was made by Council Member Mendez that Mr. Garcia be granted a 6 -month extension to bring the house up to Code; seconded by Council Member Berlanga and passed by the following vote: Jones, Best, Berlanga, Guerrero, Mendez, and Slavik voting "aye"; Pruet and Strong voting "no"; McComb absent. * * * * * * * * * * * * * Mayor Jones called for consideration of Ordinance 19, approving a contract with the Corpus Christi Chamber of Commerce for the operation of the Business Development Commission. City Attorney Hal George stated that the Chamber of Commerce made a presentation to the Council, at which time approval of the concept for Business Development to be a part of the Chamber was given; the Chamber created bylaws for a non-profit corporation for the Corpus Christi Area Economic Development Corporation; the agreement is within the Council's legal authority; and the purpose of the Corporation is to carry out the economic responsibilities of Article V of the City Charter. The contract provides a cancellation clause of 90 days; it provides for records and reports; the first year provides for payment of $240,000 by the City; and the second year provides for payment of $250,000. Mr. George stated that the City can appoint three directors and the contract contains a provision that contributing governmental entities' directors minutes Regular Council Meeting May 20, 1986 Page 14 will be according to direct proportion of each entity's contribution or as the entities shall agree. He stated that at this time it is not known whether the County can enter into the agreement; if they cannot, they could enter into an agreement with the City. He stated that membership is open to members of the Chamber of Commerce and those who make an annual contribution to the Corporation. He stated that each member receives one vote for each $500 contribution. He stated that five directors will be elected by the Chamber of Commerce, three directors elected by the membership of the Corporation, and seven directors will be designated by those governmental entities which have contracts with the Corporation in proportion to their contribution. He stated that the President will be selected by the Chamber of Commerce and is not a member of the Board. Mayor Jones noted that this is similar to the contract with the Tourist Bureau, but in this case, the Council designate three directors. Mayor Jones stated that he felt the Council should approve this, noting that the money contributed by the private sector would probably exceed the City's contribution. Council Member Berlanga stated that this is just a power structure; if the City is primarily financing this Corporation, then the City should have the majority of the votes on the board. Mr. George stated that the by-laws provide that the City will have directors in proportion to the money that is contributed. Council Member Berlanga stated that the number of Directors appointed by the City should be increased. Mr. Berlanga inquired if the Mexican Chamber of Commerce is involved in this. Mr. Jimmy Lyles, Director of the Chamber of Commerce, stated that the Mexican Chamber of Commerce is not guaranteed a position on the Board. Mr. George stated that if they contribute to the Corporation, they will become a part of it. Council Member Berlanga reiterated that the City will be the largest contributor, yet all entities will only have seven directors while the Chamber will have eight. Mr. Lyles stated that the Council asked the Chamber to take this responsibility; if they are responsible to carry out business development, then they should have the authority to make those decisions. Mr. Lyles emphasized that the governmental entities will appoint who they want, not the Chamber. Council Member Berlanga inquired if the City has the right to have Council Members on the Board, and Mr. Lyles replied that the Council has the right to appoint three members and those three could be Council Members if it is so decided. riinutes Regular Council Meeting May 20, 1986 Page 15 Mayor Jones pointed out that this is a one-year contract; if the Council decides it is not satisfactory, they do not have to renew it. Council Member Pruet stated that the purpose of the contract is that there is a need for a different and hopefully better look at the way we can address the problem of economic and business development. He stated that this proposal is the type of public/private partnership that is most effective; it is not a matter of who controls the appointments, but if it will be effective. He stated that this proposal is a very diligent attempt to address the matter; whether the City receives three or four appointments is a moot point; and hopefully the Council will look at who gets the benefits, which is the community, rather than who gets the appointments. Council Member Mendez referred to the Mexican Chamber of Commerce and stated that this chamber represents small businesses. He asked that the Council include a member of the Mexican Chamber of Commerce on the Board of Directors. Mayor Jones asked how many persons were members of the Mexican Chamber of Commerce, and Ms. Laura Garcia stated that there were 100. Council Member Mendez emphasized that the Mexican Chamber of Commerce represents small businesses and should be a part of the Board. Council Member Mendez referred to page 4 of the contract regarding equal opportunity employer and questioned the wording "..as a contractor to the City.." Mr. George stated that those words have been deleted. Council Member Mendez inquired if the City has had any indication whether the County and the Port will participate, and if not, then a workshop session with these two entities should be held. Mr. Lyles stated that a presentation would be made to the County tomorrow morning and the Chamber feels that it is important for everyone to be satisfied with the contract, because there must be a full partnership in economic development. Mr. Lyles stated that the Chamber of Commerce has 2,300 members; 80% of that is small businesses with less than ten people; and the other areas, Northside Business Association, Flour Bluff Business Association, and Padre Island area, etc., must also be involved. Council Member Mendez noted that the Mexican Chamber of Commerce has a guaranteed position on the Board of Directors of the Chamber of Commerce and he felt that of the five directors to be elected by the Chamber of Commerce to the Business Development Corporation, one position should be guaranteed for the Mexican Chamber of Commerce. ,,inutes Regular Council Meeting May 20, 1986 Page 16 Mr. Lyles stated that he has a problem with that because there are other organizations that would like the same preferential treatment; i.e., Private Industry Council, Northside Business Association, Flour Bluff Business Association, etc. He stated that if this is the case, then eventually there would be a Board with 50 people. *Council Member McComb arrived at 4:20 p.m. Council Member Guerrero referred to reports by the Corporation and inquired if quarterly reports could be made, rather than only twice a year. Mr. Lyles stated that this would pose no problem. Council Member Guerrero inquired if confidential reports would be available to Council Members, and Mr. George stated that those reports would be provided to the City Manager. Mayor Jones noted that making such information available to the Council could cause problems. Council Member Guerrero inquired if the City's affirmative action plan would apply in this instance, and Mr. George stated that there is no specific minority requirement, but it will provide for equal opportunity. Council Member Guerrero inquired if there was a limit to the number of members a corporation or company could buy. Mr. Lyles stated that regardless of the number of memberships, the Corporation can only elect three directors from the membership. Council Member Guerrero inquired if audits would be internal or external. Mr. Lyles stated that he is not sure of the technicalities, but the taxing entity should have the authority to conduct audits at any time. Mayor Jones inquired if the $500 membership fee would be considered a donation. Mr. Lyles stated that they have applied for 501c3 status, but if that is not approved, it would be 501c6, which is a business write-off, but membership could be routed through the Chamber of Commerce as 501c3. Council Member Slavik suggested that the City's appointments be increased by one or two and the Chamber's appointments be decreased. Mr. Lyles reiterated that the Chamber feels that since they will have the responsibility for the activity, they should have control. He stated that at one time the Chamber of Commerce saved the Naval Air Station and in 1985 was .ainutes Regular Council Meeting May 20, 1986 Page 17 successful in obtaining Homeport. He stated that during this time no one in particular was selected to vote -- the results are what matters. Council Member Slavik inquired if this was done purposefully, and Mr. Lyles replied in the affirmative. He stated that if the City wants control of Business Development, then the Council should leave things the way they are now. He stated that they are trying to get private support and as a private corporation, they feel they can raise the funds. Mayor Jones noted that the City contributes $1 million towards tourism and the Council has no control at all over the Tourist and Convention Bureau. Council Member Pruet stated that he would like comments from Mr. Brodie Allen, noting that this is his last week as Director of Business Development. Mr. Allen stated that the Council should support this contract because of competition. He stated that competition is intense, with cities doing almost anything for economic development. He stated that his philosophy has been that Texas and Corpus Christi are a good place to do business, and we have a good workforce and productivity. He stated that this needs to be addressed and something needs to be done, and this contract gives the City an opportunity to do more than is being done now. Mr. Allen thanked the Council for the support he has received during his tenure with the City. Mayor Jones stated that there is no question as to where Mr. Allen's efforts lie and stated that it has been a pleasure working with him. Mrs. Nora Garcia, 1525 Greenwood, President—Elect of the Mexican Chamber of Commerce, stated that the corporation is very unfair; it is wrong to use taxpayers' money in this fashion; as Hispanics, they are the only ones who understand the needs of other Hispanics; all of their members are small businesses and they specialize in their needs; and the Chamber of Commerce does not specialize in the needs of the Hispanic community. She stated that a $500 membership fee is too high; they cannot afford this; vote buying in association with a governmental entity is wrong; and charitable contributions into business development leads to corruption. She asked that the Mexican Chamber of Commerce be guaranteed a position on the Board of Directors. Council Member Slavik agreed that someone should be on the Board who is interested in small business. She stated that the Council could agree that one of their directors be a representative of small business. She stated that she would be in favor of one of the City's directors being a representative of a minority. minutes Regular Council Meeting May 20, 1986 Page 18 Mayor Jones pointed out that at least one of the City's appointments would be a Mexican -American. Council Member Mendez stated that the Mexican Chamber of Commerce is a service organization and the number of members is irrelevant. He stated that it would be a disservice not to include them on the Board, noting that they could play a vital role in providing information on procurement to small businesses. Mayor Jones stated that there is a possibility that the Small Business Administration will not continue in Corpus Christi. He stated that it bothers him that it is felt that a small Mexican business can only be helped by the Mexican Chamber of Commerce. Council Member McComb noted that 95% of the business in this community is small business and the majority of the Chamber of Commerce consists of small businesses. Council Member Strong verified that the Mexican Chamber of Commerce has a seat on the Board of Directors of the Chamber of Commerce. She stated that the Chamber of Commerce Board of Directors has the opportunity to appoint 5 individuals and the governmental entities have 7 appointments. She stated that it is a very minimal amount on the Board of Directors so she feels that votes cannot be bought. Council Member Strong stated that the City should move forward on this contract and recognize that the community is trying to work together. Council Member Slavik stated that the $500 fee is high and many people will not be able to afford this. Mr. Lyles stated that in order to reach the appropriate levels of the public sector, the fee needs to be set at $500. Council Member Berlanga stated that the point made by Ms. Garcia is valid and they should be guaranteed a position on the Board, noting that they could influence and promote small business in Corpus Christi. Council Member Mendez stated that the President of the Mexican Chamber of Commerce is on the Board of Directors of the Chamber of Commerce. He stated that the concern is for success of economic development and one appointment will not make a difference in its success. Mayor Pro Tem Best determined that 50% of the members of the Mexican Chamber of Commerce are members of the Chamber of Commerce and dues are $100 for a group and $150 for individuals. Dr. Best stated that he could see no reason to hand-pick someone from the Mexican Chamber of Commerce to be on this Board. He stated that since 50% of the Mexican Chamber of Commerce are members of the Chamber of Commerce, he feels that they would be represented and that they should use whatever political clout they have to get someone appointed. ninutes Regular Council Meeting May 20, 1986 Page 19 A motion was made by Council Member Mendez that one of the members designated by the Chamber of Commerce be an individual from the Mexican Chamber of Commerce; seconded by Council Member Berlanga. Mayor Jones noted that this would have to be acceptable to the Chamber of Commerce. The motion failed to pass as follows: Jones, Best, McComb, Pruet, Slavik, and Strong voting "no"; Berlanga and Mendez voting "aye"; Guerrero absent at the time the vote was taken. Mr. Juan Gomez, 1615 Comanche, stated the Chamber of Commerce to receive tax venture, and if so, then the City should service contract. Mayor Jones asked if Mr. Gomez had have been invited to participate in this, that this contract is a mechanism for dollars or it is a public/private have advertised for proposals for a any recommendations as to who should and Mr. Gomez stated he did not. Mr. Frank Gallardo, 4201 Dryer, stated that the City does need business and he is concerned that the west side is being left out. There were no further comments on Ordinance 19; Assistant City Secretary Zahn polled the Council for their vote as follows: 19. FIRST READING AUTHORIZING THE EXECUTION OF A CONTRACT WITH THE CHAMBER OF COMMERCE FOR THE OPERATION OF THE CORPUS CHRISTI AREA ECONOMIC DEVELOPMENT CORPORATION. The ordinance was read for the first time and passed to second reading as follows: Jones, Best, Guerrero, McComb, Mendez, Pruet, Slavik, and Strong voting "aye"; Berlanga voting "no." Mayor Jones called for consideration of Ordinance 20, second reading regarding smoking prohibitions. Mr. Nick Reyna, President of the Hotel/Motel Association, stated that the Association is not against the ordinance in principal, but they do object to the language of the ordinance regarding work areas. He stated that management should be able to regulate their work areas without an ordinance behind them. He stated he is also concerned about posting of signs. He stated that the signage that is required is not compatible with the decor of most hotels and will be very expensive. He stated that it would be almost impossible to make the signs tamper -proof and with as many signs as will be required and the type of sign, the cost will range from $40 to $70 per sign. He asked that this section of the ordinance be reconsidered. „inutes Regular Council Meeting May 20, 1986 Page 20 Mr. Reyna referred to Section 4b of the ordinance, which requires development of a plan of compliance. He stated that this is a management responsibility. Mayor Jones suggested that Mr. Reyna meet with the city staff before third reading of this ordinance. Mr. Briones stated that this would be done and some changes to the ordinance would probably be recommended. In response to a question from Council Member Guerrero, Mr. Reyna stated that the association is mainly concerned with signage requirements and the fact that it addresses private work areas. Mr. David Lindlie, Hershey Hotel, stated that he attended meetings with the Restaurant Association regarding this ordinance. He stated that restaurants would need few signs, but the signs present a major problem for hotels. Dr. Marcello Rodriguez, Director of Occupational Health, stated that it is important that each business have a plan of enforcement. He stated that he does not understand the high prices quoted by Mr. Reyna, noting that hotels only have to post signs at the restaurant level. Mr. Reyna stated that the ordinance is very specific about the location of the signs and the size of the signs. He stated that the prices he quoted were quoted to him from different sign companies. Mr. Clay Moore inquired if at his business, an arena, he could have a section for smoking, and Assistant City Manager Bill Hennings stated that it would have to be 100% non-smoking. Mr Moore stated that his customers would get mad. Mr. Hennings stated that the Citizens Advisory Health Board could discuss the changes at their meeting scheduled for tomorrow and they might have some recommendations. Assistant City Secretary Zahn polled the Council for their vote as follows: 20. SECOND READING AMENDING CHAPTER 23, HEALTH AND SANITATION, BY ADDING SECTION 23-74, SMOKING PROHIBITIONS, OF THE CITY CODE, TO PROTECT CITIZENS BY PLACING RESTRICTIONS ON SMOKING WITHIN THE CITY OF CORPUS CHRISTI; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION. The Ordinance was read for the second time and passed to third reading as follows: Jones, Best, Berlanga, Guerrero, McComb, Mendez, Pruet, Slavik and Strong voting "aye.” _.mutes Regular Council Meeting May 20, 1986 Page 21 A motion was made by Council Member McComb, seconded by Council Member Strong and passed unanimously, that the Council recess at 4:32 p.m. * * * * * * * * * * * * * Mayor Jones called for consideration of the second readings of the Bayfront Associates Ltd. leases for a Water Front Festival Market and an amendment to the amended ground lease agreement. Assistant City Manager Utter gave background information regarding the leases. He stated that both leases have basically the same remuneration terms to the City and he has provided the Council with revenue projections. He stated that both contracts were published in the newspaper and the cost, approximately $25,000 for all three readings, will be paid by Bayfront Associates. Mayor Jones asked when revenue to the City would begin, and Mr. Utter stated that it would commence the first day of the first month of the sixth year of the date of occupancy. He stated that he did three projections. He stated that assuming the market area opened in 1988 and the boat slips in 1987 the 20 year total, including sales tax on gross sale and boat slips and advalorem taxes, would be approximately $25 million and $83.9 million for 40 years. He stated that this is with no inflation from 1988. He stated that another projection has the same assumptions except that the gross sales would increase by 10% per year and boat slips would increase by 1% per year and the consumer price index by 2% per year. He stated that under this projection, the total for a 20 -year period would be $25.7 million and $117.9 million for a 40 year period. Council Member Slavik inquired if Bayfront Associates would pay for the cost of I.H. 37, and Mr. Utter stated that BFA pays full cost and the City does not reimburse. Council Member Slavik referred to the City's liability and inquired if it were a total of $625,000 on land and $2 million on water. Mr. Utter stated that the City is not liable for reimbursement of cost of Tract 2 with interest; the City has no liability for the cost of IH 37 realignment, other than the utilization of Aubrey Street as right-of-way; the City has liability for crosswalks and signalization at the intersection of rerouted IR 37 and Shoreline at an estimated cost of $200,000; the City is to endeavor to place a seawall overlook in the Breakwater Park at an estimated cost of $50,000 to $75,000; he does not consider IH 37 landscaping and the Harbor Bridge Lighting Project to be a liability; and there is no liability to the City to commit funds funds from the Reinvestment Zone for boat slips. Council Member Slavik inquired if there would be a $2 million liability in the water from tax increment financing. ..inutes Regular Council Meeting May 20, 1986 Page 22 Mr. Utter stated that BFA would be reimbursed out of the tax increment of the water festival market for a portion of the cost of the breakwater park. Council Member Slavik inquired if a performance bond would be a requirement in the contract, and Mr. Utter stated that staff feels that before construction commences, BFA should show financial capacity. He stated that this means a definitive written loan commitment from a financial institution. Mr. George stated that there is no objection to including a performance bond as a part of the contract. Council Member Slavik referred to air rights, and Mr. Utter stated that staff feels it is incorrect to not charge for air rights. He stated that for the two block area, the City would receive compensation and the Council has approval of layout of the market. Council Member Slavik referred to the property description, and Mr. Utter stated that this would be provided Friday. (relating to Block 11, Beach Portion) Mrs. Slavik referred to a letter from the Transit Authority in which it states that there should be a master plan for transportation, and Mr. Utter again stated that the Council has full approval of all aspects for the market. Council Member Slavik stated that certain City boards should review this before the Council acts on the contracts. Council Member Slavik stated that, in her opinion, the delay of rents on Tract 2 is not warranted. Mr. Utter stated that the market area carries the area in the water. He stated that the rental made from the boat slips will not amortize a breakwater and breakwater park; therefore, the market must carry the area in the water and because of that, the first year of stabilized operation will not occur until the fifth or sixth year, plus this gives an added incentive to the developer to do the project and have a financially viable project. He stated that every new business has a start—up period. Council Member Slavik stated that she would like to delete the section referring to self insurance. Mr. George stated that this is included because the Council passed an ordinance that recognizes the insurance problems and it may not be possible for BFA to get insurance. Council Member Slavik referred to personal property taxes and stated that Article 3201 of the Property Tax Code and the City Charter prohibits the promise of no liens; therefore, this section should be corrected. ninutes Regular Council Meeting May 20, 1986 Page 23 Mr. George stated that this section ensures that there will be no personal property tax lien on the property the City will receive. He stated that the intent is that the personal tax is not attached to the real estate. Council Member Slavik stated that under the contract, BFA could construct a hotel. Mayor Jones stated that they would not construct a hotel unless the Council approved it. Mrs. Slavik stated that she did not understand why hotel restrictions were eliminated from the contract. Council Member Slavik stated that according to her information, Tract 3 has been enlarged by one—half acre. Council Member Slavik referred to the letter of credit and questioned why this only applies to the first half of the project and not the entire project. She stated that she sees nothing in the contract that would prohibit commercial buildings in the water. She stated that the contract should include a clear statement that no buildings will be in the water. Council Member Slavik stated that reference to $1.2 million invested by BFA should not be in the contract because of possible litigation and that this has never been documented to the City. Council Member Slavik stated that the contract provides for "forgiveness of parking" and that City Boards should review this. Council Member Strong stated that she had some questions for the staff also, but she would provide these to them in writing with copies to the Council. Mayor Jones called for comments from the audience. Mrs. Pat Duaine stated that since this is a new contract, it should be subject to a referendum. She stated that she objects to the use of IRB's to put other people in business. She stated that the Council does not listen to the people. Mayor Jones inquired if IRB's are being used, and Mr. Utter stated that it is not contemplated, but the City did pass an inducement resolution three years ago for this project. Council Member Slavik referred to Dock and Wharfage Bonds, and Mr. Utter stated that he could not say whether they will be available or not. Mrs. Patricia Suter, 1002 Chamberlain, provided the Council with a list of her objections and questions. She stated that this contract requires a referendum and she is prepared to call a referendum through petitions and that minutes Regular Council Meeting May 20, 1986 Page 24 the petitions have already been prepared. She stated that her concern is for environmental protection, and the Council should take a closer look at the economical feasibility of this project. She stated that she is prepared to take legal action on this issue. Mr. Henry Berryhill, 231 Rosebud, stated that the contract provides no architectural design, but that the Council will have approval. He stated that in his opinion the Council will accept any reasonable design. He stated that parking is not addressed in the contract; this project will not stand on tourism alone and will need local support; and he is in favor of bayfront development, but only with a master plan. He stated that this should be placed on a referendum. Mr. Jack Gordy, 6402 Weber Road, stated that the issue is the cost to the taxpayers, noting that it has already cost money in staff and Council time. Mr. Lewis Lovelace, 1549 Casa Grande, stated that the contract is new and should be voted on by the citizens of Corpus Christi. He stated that the Council is subjecting themselves to a recall election because of violations to the City Charter. Mr. Tom Grantland, 11041 Annaville Road, President, Audobon Society, stated that feasibility studies indicated that the upland site would not work and that the project would not be successful without the Aquarium, but now they are saying it is feasible. He stated that the revenue projections by Mr. Utter are questionable and the Council should not rely on City staff analysis. He stated that according to the contract, the City is liable for utilities, $350,000 on landscaping, and $200,000 for signalization. He stated that Mr. Utter deceives the Council by saying that BFA will pay for the relocation of IH 37. Mr. Grantland stated that the contract violates the Property Tax Code (referring to liens on personal property). Mr. Ed Notzon, 715 Upper Broadway, stated that he hoped the divisiveness can be stopped. He stated that he questions whether the lease would provide more jobs; he feels that tourist attractions can be created without the lease; and he feels that the leases will create a legal responsibility for the City. He stated that commercial buildings are not prohibited in the lease and that this will not bring revenues to the City. Mr. J.E. O'Brien, 4130 Pompano, stated that the lease still refers to commercial facilities on the water; it also refers to financing through the tax increment zone; he stated that the City has not appointed one member of the Board to serve as Chairman of the Reinvestment Zone as required by the Tax Increment Finance Act of 1981; and he referred to project costs, including administrative costs, that should be listed, but this has not been done either. Mr. O'Brien urged a referendum on the project. Council Member Slavik stated that she is not against the project on land but she is concerned about divisiveness and calling for a referendum through :,inutes Regular Council Meeting May 20, 1986 Page 25 petitions. She stated that she has been trying to discourage the circulation of petitions, but that those involved are going to do it. Council Member Slavik made a motion that a referendum be held; seconded by Council Member Berlanga. Mayor Pro Tem Best inquired if the City does have a referendum, if the Water Front Festival Market agreement would be considered a new contract, and City Attorney George stated that for the purpose of an autonomous referendum, it would not be. Mayor Pro Tem Best inquired if the amended lease agreement was a new contract, and Mr. George stated that a referendum is not required because the lease was approved prior to the amendment to the Charter. Dr. Best asked what damages the City would have, if the referendum failed to pass. Mr. George stated that it would be a breach of contract and BFA could ask for loss of profits. Dr. Best asked what would happen if a referendum was held as a result of petitions and it failed to pass, and Mr. George stated that the City would have a better defense in that case. Mayor Jones inquired if a petition could force the City to abrigate a legal contract and Mr. George stated that he did not think so. Dr. Best stated that it is a losing situation either way, noting that if the City does cancel the contract, BFA would probably sue. Mr. George stated that that is a fact the opposition is ignoring; i.e., the City has a contract with liabilities and responsibilities. He stated that there are threats of lawsuits from both sides. In response to a question from Dr. Best, Mr. George stated that the losses under a claim of loss of profits could be considerable. Council Member Berlanga stated that the concept is good, but he has always doubted the contract. He stated that the people should have a voice in the matter. Mayor Jones stated that elections have been based on this issue. He stated that he is concerned about the City's liability and the Council should be aware of this. Mayor Jones stated that the original contract was written to provide the new Council an opportunity to cancel the contract within a certain period of time after being elected. ..inutes Regular Council Meeting May 20, 1986 Page 26 Council Member Slavik expressed the opinion that the contract for the land is a new lease, and Mr. George agreed that it is a new lease; the land is in the Central Improvement District and is exempt from the election procedure. Mr. George continued by stating that he is experiencing problems in discussing legal questions that might eventually be included in a lawsuit. He stated also that he has a question in regard to conducting a referendum at a cost to the taxpayers of approximately $35 to $40 thousand if it is strictly an advisory election. He stated that such an election may not even be legal. Council Member Slavik pointed out that several people have addressed the economic feasibility of the revised project and stated that the Council has asked the staff to obtain a written report from Laventhol & Horwath indicating that this new location will be economically feasible. Council Member McComb stated that he shared Mayor Pro Tem Best's concerns about the City's legal responsibilities, but that basically he has no problem in submitting this question to a referendum, if this did not result in a lawsuit that might be filed by the other party who has a contract with the City. He also pointed that a lease of land in the Central Improvement District is not subject to a referendum. He continued by stating that the Council needs to go ahead and approve this ordinance on second reading today. He mentioned the fact that there are groups in this City who are opposed to everything, and creating divisiveness in the City works both ways. Mr. McComb concluded that the Council should not continue to discuss this matter in open session when there are two groups present who might be contemplating a lawsuit against the City. Mayor Jones stated that he will vote against the motion calling for a referendum. He stated that this will have a positive impact on the community and will reduce taxes, and in his opinion, this project is in the best interest of the City. The motion to call a referendum failed to pass as follows: Jones, Guerrero, McComb, Mendez, Pruet, and Strong voting "no"; Berlanga and Slavik "aye"; Best abstaining. Assistant City Secretary Zahn polled the Council for their vote on the following ordinances: 21. SECOND READING AUTHORIZING THE EXECUTION OF A WATERFRONT FESTIVAL MARKET GROUND LEASE AGREEMENT WITH BAYFRONT ASSOCIATES, LTD. The ordinance was read for the second time and passed to third reading as follows: Jones, Best, Guerrero, McComb, Mendez, Pruet, and Strong voting "aye"; Berlanga and Slavik "no." ninutes Regular Council Meeting May 20, 1986 Page 27 22. SECOND READING AUTHORIZING THE EXECUTION OF AN AMENDED GROUND LEASE AGREEMENT WITH BAYFRONT ASSOCIATES, LTD. The ordinance was read for the second time and passed to third reading as follows: Jones, Best, Guerrero, McComb, Mendez, Pruet, and Strong voting "aye"; Berlanga and Slavik "no." Mr. Utter stated that the third reading would be on the agenda in approximately two weeks in order to give the staff time to answer all of the questions that were presented today. * * * * * * * * * * * * * Mayor Jones announced the public hearing on Lobo Lane street closing. Mr. Gerald Smith, City Engineer, displayed a transparency of the area to be closed. He stated that this is between Carline Alley and Sam Rankin Street and the request to close has been made in connection with the proposed expansion of the Jackson -Flowers Funeral Home. Mr. Smith stated that this is an unpaved alley and contains a 2" gas line; the staff has no objection to the closure provided a cul-de-sac is constructed; and commitments have been made by the City to relocate the gas line and construct sidewalks on Lobo through CDBG funds. There were no comments from the audience; a motion was made by Council Member Pruet that the hearing be closed; seconded by Council Member Slavik; and passed unanimously. A motion was made by Council Member Pruet that the closure be approved subject to the conditions as outlined by Mr. Smith; seconded by Council Member Strong; and passed unanimously. Mr. Smith stated that the first reading of the ordinance effecting the closure would be on next week's agenda. * * * * * * * * * * * * 24. Application No. 486-3, Mr. and Mrs. John Davis: For a change of zoning from "R -1B" One -family Dwelling District to "B-1" Neighborhood Business District on Lot 1, Block 2, Washington Addition, located at the southeast corner of Angela Drive and West Point Road. (Recessed for 2 weeks - 05/06/86) Mr. Utter stated that in response to the 23 notices mailed, 2 were returned in favor, and 5 were returned in opposition. He stated that the Planning Staff and Planning Commission recommend approval; the 20% rule is in effect; therefore, passage of the ordinance will require 7 affirmative votes. He stated that this case was delayed in order to give the applicant time to meet with property owners. .,inutes Regular Council Meeting May 20, 1986 Page 28 Mr. Larry Wenger, Director of Planning, displayed the area on the zoning and land use map, described the land use in the surrounding area, and showed slides of the vicinity. Mr. Wenger stated that "B-1" is recommended because the area is surrounded by "B-1." Mr. Ruben Bonilla, representing the applicant, distributed a map to the Council and described the "B-1" uses in the surrounding area. He stated that no specific use is planned for the property, but the Davis' would like an opportunity to have proper zoning. He stated that it is a compatible use and is consistent with the surrounding area and will assist the Davis' to earn a living and increase the revenue base for the City through sales tax. Mr. Bonilla provided the Council with a list of over 150 people in the area who support the zoning change. Mr. Bonilla stated that the opponents are under the impression that a store will be built that sells alcoholic beverages and he feels that as long as it is not prohibited by specific City ordinance, the Council cannot address that situation. He stated that once the property is zoned properly, Mr. Davis will consider the economic viability of different businesses, but at this point, he cannot do anything. Mr. Bonilla stated that he tried to set up a meeting with the opposition, but he received no response to his letter to Mr. Noyola. Council Member Strong pointed out that the zoning application listed the reason for the change was for a liquor store. Mr. Bonilla replied that that is not definite, pointing out that plans have not been prepared. He stated that the argument regarding a liquor store carries no weight when consideration is given to the fact that there are stores in the immediate area selling wine and beer. He stated that the applicant is agreeable to "B-1" zoning with restrictions. Council Member Strong inquired if he is willing to accept "B-1" that prohibits alcohol, and Mr. Bonilla replied that if the Council wants to deny Mr. Davis an opportunity to make a living, he will have no choice. Council Member Guerrero stated that an application for a liquor license had been filled out by Mr. Davis, and Mr. Bonilla stated that he was unaware of that. Mr. Utter explained that under "B-1" zoning a liquor store would be allowed, but not a bar. Council Member McComb stated that the Council's responsibility is compatible use in terms of the adjacent zoning. He stated that if the Council does not like the fact that "B-1" zoning allows liquor stores, then the Council should re-evaluate "B-1" zoning classification and eliminate their use in "B-1." He stated that "B-1" is consistent with the surrounding zoning. ciinut e s Regular Council Meeting May 20, 1986 Page 29 Mr. Bonilla stated that what the Council is doing gives certain implication of selective enforcement of the zoning laws. He stated that if the Council imposes morals on a vacant lot, what will they do with the existing properties that do sell liquor. Council Member Guerrero stated that "B-1" is not compatible with the area; 80% of the area is residential; there are 4 schools within walking distance; and this is the area that is volatile in drugs and substance abuse. He stated that it is his opinion that the applicant wants to take advantage of a poor situation. He stated that he cannot support "B-1", but "B-1" without liquor would be a good compromise. Council Member Mendez stated that additional "B-1" zoning would increase the problem that exists in that neighborhood. He stated that people drink outside of different establishments on the street. Mr. Bonilla stated that the application is for "B-1" zoning; there will not be a liquor store; and he was not advised that the 20% rule was in effect. Discussion followed among the Council about the possibility of granting a special permit for "B-1" uses excluding a retail liquor store. The Council then recessed at 8:02 in order to allow the opposition time to discuss the special permit. The Council reconvened at 8:14 p.m. Mr. Richard Jackson, 4721 Angela, stated that the opposition does not oppose "B-1", but would like to exclude all alcoholic beverages. A motion was made by Council Member Guerrero that "B-1" be denied and in lieu thereof grant a special permit for "B-1" uses, excluding the sale of all alcoholic beverages. The motion was seconded by Council Member Pruet. Mr. Frank Gallardo, 4201 Dyer, stated that he is not opposed to "B-1", but is opposed to the sale of alcoholic beverages. Mr. Dickie Valdez, 4353 Molina, stated that he is in favor of the special permit, but questioned how the City could ensure that no alcoholic beverages would be sold. Mayor Jones explained that whatever is built on the property would require a Certificate of Occupancy and only compliance with the special permit would allow this certificate to be issued. Council Member Berlanga stated that Mr. Guerrero's motion was not fair and that he would be in favor of a special permit for "B-1" uses excluding only a liquor store. .,inutes Regular Council Meeting May 20, 1986 Page 30 Mr. Bonilla stated that the motion made by Mr. Guerrero is not acceptable to him because it imposes prohibition in the community. He stated that the original restriction of no liquor store is acceptable though. Mr. Bonilla inquired if the Council was going to close all stores such as Maverick Markets and HES that sell beer and other alcoholic beverages. Council Member Guerrero stated that the motion is in lieu of the requested zoning. The motion failed to pass as follows: Best, Guerrero, Mendez, and Slavik voting "aye"; Jones, Berlanga, McComb, Pruet, and Strong voting "no." A motion was made by Council Member McComb that the hearing be closed; seconded by Council Member Slavik; and passed unanimously. A motion was made by Council Member Berlanga that a special permit be granted for "B-1" uses excluding a liquor store and consumption of alcoholic beverages on premise. Council Member Guerrero stated that the application as it is now is exactly like Mr. Berlanga's motion. Mr. Utter stated that Mr. Berlanga's motion would allow a Maverick Market type operation; it would deny a liquor store; and it would deny a restaurant selling alcoholic beverages. He stated that a bar is not allowed under "B-1" uses. Council Member Guerrero stated that if the motion passes, the Council would have circumvented the application, which requires 7 affirmative votes. Mr. Utter stated that the ordinance will require 7 affirmative votes, but the motion to bring forth the ordinance requires a majority vote. Mr. Berlanga's motion was seconded by Council Member Strong and passed as follows: Jones, Best, Berlanga, Pruet, and Strong voting "aye"; Guerrero, McComb, Mendez, and Slavik voting "no." * * * * * * * * * * * * * 25. Application No. 486-8, Corpus Christi Land Venture Associates: For a change of zoning from "R -1B" One -family Dwelling District to "B-4" General Business District on Lots 3 and 4, Block 1, King's Crossing Unit 1, Phase 3, located on the southside of Yorktown Boulevard, approximately 355' west of Cimmaron Boulevard, on the west side of Cimmaron Boulevard, approximately 300' south of Yorktown Boulevard. Mr. Utter stated that in response to the 2 notices mailed, one was returned in favor and none in opposition. He stated that the Planning Commission and Planning Staff recommend approval. „inutes Regular Council Meeting May 20, 1986 Page 31 There were no comments from the audience; a motion was made by Mayor Pro Tem Best to close the hearing; seconded by Council Member Pruet; and passed unanimously. Assistant City Secretary Zahn polled the Council for their vote and the following passed: ORDINANCE NO. 19324 AMENDING THE ZONING ORDINANCE UPON APPLICATION OF CORPUS CHRISTI LAND VENTURE BY CHANGING THE ZONING MAP IN REFERENCE TO LOTS 3 AND 4, BLOCK 1, KING'S CROSSING UNIT 1, PHASE 3 FROM "R -1B” ONE -FAMILY DWELLING DISTRICT TO "B-4" GENERAL BUSINESS DISTRICT; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the ordinance passed as follows: Jones, Best, Berlanga, McComb, Mendez, Pruet, Slavik, and Strong voting "aye"; Guerrero absent at the time the vote was taken. * * * * * * * * * * * * * 26. Application No. 486-7, Mr. Shawn Bodine: For a change of zoning from "R-2" Multiple Dwelling District to "R -1C" One -family Dwelling District on Lots 1 through 9, Block 4, Crestmont Unit 10R, located along the south side of Persimmon Street, at the southeast corner of Persimmon Street and Crestlea Drive. Mr. Utter stated that in response to the 33 notices mailed, 7 were returned in favor and none were returned in opposition. He stated that the Planning Commission and Planning Staff recommend approval. There were no comments from the audience; a motion was made by Mayor Pro Tem Best that the hearing be closed; seconded by Council Member Pruet; and passed unanimously. Assistant City Secretary Zahn polled the Council for their vote and the following passed: ORDINANCE NO. 19325 AMENDING THE ZONING ORDINANCE UPON APPLICATION OF SHAWN BODINE BY CHANGING THE ZONING MAP IN REFERENCE TO LOTS 1 THROUGH 9, BLOCK 4, CRESTMONT UNIT 10R, FROM "R-2" MULTIPLE DWELLING DISTRICT TO "R -1C" ONE -FAMILY DWELLING DISTRICT; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the ordinance passed as follows: Jones, Best, Berlanga, McComb, Mendez, Pruet, Slavik, and Strong voting "aye"; Guerrero absent at the time the vote was taken. * * * * * * * * * * * * * ninutes Regular Council Meeting May 20, 1986 Page 32 27. Application No. 486-13, Mr. R. C. Allen: For a change of zoning from "AB" Professional Office District and "R -1B" One -family Dwelling District to "B-4" General Business District on Block A, Park Terrace and 5.65± acres out of Lot 1, Oso Farm Tracts, located on the west side of Everhart Road, between Lamont Street and McArdle Road. Council Member Strong stated that 4 members of the neighborhood association were at the Council Meeting but had to leave and they wanted to state that they had discussed this case with Mr. R.C. Allen and they have no opposition. There were no comments from the audience; a motion was made by Council Member McComb to close the hearing; seconded by Council Member Slavik; and passed unanimously. Mr. Utter explained that the Planning Commission and Planning Staff recommend denial of "B-4", and in lieu thereof, grant a special permit on a portion of the property for a shopping center with "8-1" uses in accordance with the approved site plan and ten conditions. Council Member Pruet commended Mr. R.C. Allen and Mr. Johnny Cotten for working with the neighborhood in conjunction with this zoning case. Assistant City Secretary Zahn polled the Council for their vote and the following was approved: ORDINANCE NO. 19326 AMENDING THE ZONING ORDINANCE UPON APPLICATION OF R.C. ALLEN BY GRANTING A SPECIAL COUNCIL PERMIT FOR A SHOPPING CENTER LIMITED TO "B-1" NEIGHBORHOOD BUSINESS DISTRICT USES ON BLOCK A, PARK TERRACE AND 6.62 ACRES OUT OF LOT 1, OSO FARM TRACTS; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the ordinance passed as follows: Jones, Best, Berlanga, Guerrero, McComb, Mendez, Pruet, Slavik, and Strong voting "aye." * * * * * * * * * * * * * 28. RECONVENE PUBLIC HEARING TO DISCUSS THE 12TH YEAR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM. (Recessed Public Hearing - 5/13/86) Mr. Utter stated that in addition to what was submitted to the Council in the packet, there were some additional requests. He stated that Community Action Agency requested a building for the Head Start Program and the staff would like to support that request in the amount of $40,000. He stated that there was a request for Laguna Park Improvements and the staff is recommending $6,000 for this park. ..inutes Regular Council Meeting May 20, 1986 Page 33 Council Member McComb stated that Community Action Agency was to purchase the building last year and this did not happen and now the City will be taking money out of rehabilitation for this purpose. Mr. Utter stated that the City did provide CDBG funds for the purchase of the land; Community Action Agency was to obtain several buildings to place on the land; they did obtain one building for a community center; they were not able to obtain the Naval Air Station Building for the Head Start Program, although this was not their fault; and he has no reason not to recommend this. Council Member Berlanga stated that the services provided by Head Start are valuable. Council Member Guerrero made a motion to Approve the proposed 12th Year Community Development Block Grant Program and directing the Staff to submit the allocation request based on the figures approved; seconded by Council Member Berlanga; and passed unanimously. (A copy of said program is attached hereto and made a part of the minutes.) * * * * * * * * * * * * * Acting City Manager Briones stated that the meetings of the different corporations would be delayed one week. * * * * * * * * * * * * * Mayor Jones called for petitions from the audience. Mr. George Dawson, President, Seamen's Center, stated that the Center would like the use of the property at the corner of Fitzgerald and Mesquite Streets for the Center. He stated they would like to construct a facility for use as a Seamen's Center; the building would be donated to the City after completion; Mr. James Rome, Architect, will be designing the building; and it will be a Victorian reproduction to complement Heritage Park which is across the street. Mrs. Edwin Singer, 3642 Aransas, stated that there is no conflict with the location of the Seamen's Center and she feels the City should support this group as they are doing an excellent job. Mr. James Rome displayed a drawing of the proposed building. He stated that this will provid an opportunity to extend the boundaries of Heritage Park which will improve the activities in that area. He urged the Council to support this proposal. Mayor Jones asked that this request be listed as an agenda item. There being no further business to come before the Council; on motion by Council Member Pruet; seconded by Council Member Mendez and passed unanimously, the meeting was adjourned at 8:56 p.m., May 20, 1986. /td __flutes Regular Council Meeting May 20, 1986 Page 34 I HEREBY CERTIFY that the foregoing is a true and correct copy of the Minutes of the Regular Council Meeting of the City of Corpus Christi of May 20, 1986, which were approved by the City Council /'`onnJune 3, 1986. WITNESSETH MY HAND AND SEAL, this the iG 7'tlay of 9 Armando Chapa City Secretary City of Corpus Christi, Texas Luther Jon:F', MAYOR