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HomeMy WebLinkAboutMinutes City Council - 10/14/2003I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Regular Meeting of the Corpus Christi City Council of October 14, 2003, which were approved by the City Council on October 21, 2003. WITNESSETH MY HAND AND SEAL, this the 21st day of October 2003. Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting October 14, 2003 - 2:20 p.m. PRESENT Mayor Samuel L. Neal Jr. (arrived at 2:35 p.m.) Mayor Pro Tem Brent Chesney Council Members: Brent Chesney Javier D. Colmenero Melody Cooper Henry Garrett Bill Kelly Rex A. Kinnison Jesse Noyola Mark Scott City Staff: City Manager George K. Noe Senior Asst. Attorney Doyle Curtis City Secretary Armando Chapa Recording Secretary Rebecca Huerta Mayor Pro Tem Chesney called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Lt. Robert Christian, CHC, USN and the Pledge of Allegiance to the United States flag was led by Council Member Noyola. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Neal called for approval of the minutes of the joint Council meeting and the regular Council meeting of September 30, 2003. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * ** Mayor Pro Tem Chesney deviated from the agenda, and called for consideration of the consent agenda (Items 3-16). City Secretary Chapa announced that Council Member Noyola was abstaining from the vote and discussion on Items 6, 9, 11, 12, 13 and 14. Council members requested that Items 5, 6, and 8 be discussed. City Secretary Chapa noted that Item 14 needed to be amended. There were no comments from the audience. A motion was made and passed to approve Items 3 through 16, constituting the consent agenda, except for Items 5, 6, 8, and 14, which were pulled for individual consideration. City Secretary Chapa polled the Council for their votes as follows: 3. MOTION NO. 2003-359 Motion approving the purchase of laboratory equipment from Leeds Instruments, Inc., of Irving, Texas in accordance with the State of Texas Cooperative Purchasing Program in the amount of $26,960.60. This equipment will be used by the Health Department. Funds are available from the Health Department Grants Fund No. 1066. The foregoing motion was passed and approved with the following vote: Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Neal was absent. Minutes - Regular Council Meeting October 14, 2003 - Page 2 4. RESOLUTION NO. 025514 Resolution authorizing the City Manager or his designee to submit a Hazardous Materials Emergency Preparedness Planning Grant application to the Texas Department of Public Safety, Division of Emergency Management in the amount of $22,400 for public awareness brochures; production and broadcast of infomercials; an emergency response drill; and to update the hazardous materials information in the Tier II database, with a city match of $5,600 in the No. 6060 Local Emergency Planning Committee Fund for a total project costs of $28,000. The foregoing resolution was passed and approved with the following vote: Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Neal was absent. 7. ORDINANCE NO. 025515 Ordinance appropriating $500,000 into the Street Capital Improvement Program Fund No. 3530 from the Regional Transportation Authority for the Regional Transportation Authority 2003 Special Projects Program, amending FY 2002-2003 Capital Budget adopted by Ordinance No. 025144 to increase Fund No. 3530 appropriations by $500,000. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Neal was absent. 9.a. ORDINANCE NO. 025516 Ordinance authorizing the City Manager or his designee to execute a lease agreement with the United States Postal Service for the operation of United States Postal Services at the Corpus Christi International Airport for an annual rental payment of $13,840 for a period not to exceed twelve months. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, and Scott, voting "Aye"; Noyola abstained; Neal was absent. 9.b. FIRST READING ORDINANCE Authorizing the City Manager or his designee to execute a lease with the United States Postal Service to lease space containing approximately 463 square feet located in the cargo facility for the operation of United States Postal Services in consideration of an annual rental payment of $13,840 for a term of up to fifty-four months. The foregoing ordinance was passed and approved on its first reading with the following vote: Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, and Scott, voting "Aye"; Noyola abstained; Neal was absent. Minutes - Regular Council Meeting October 14, 2003 - Page 3 10. ORDINANCE NO. 025517 Ordinance appropriating $491,776.58 in the Airport 2000A Capital Improvement Program Fund No. 3024 from FY 2001-2002 and FY 2002-2003 interest income; transferring $491,776.58 into the Airport 2000A Debt Service Fund No. 4640 for debt service payments on airport improvements; and amending the FY 2002-2003 Capital Budget adopted by Ordinance No. 025144 to increase appropriations by $491,776.58. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Neal was absent. 11. ORDINANCE NO. 025518 Ordinance appropriating $464,312.49 in the Airport 2000B Capital Improvement Program Fund No. 3025 from FY 2001-2002 and FY 2002-2003 interest income; transferring $464,312.49 into the Airport 2000B Debt Service Fund No. 4641 for debt service payments on airport improvements; and amending the FY 2002-2003 Capital Budget adopted by Ordinance No. 025144 to increase appropriations by $464,312.49. (Attachment # 11) An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, and Scott, voting "Aye"; Noyola abstained; Neal was absent. 12. ORDINANCE NO. 025519 Ordinance appropriating $508,848 in the Passenger Facility Charge Fund No. 4621 from fund balance; transferring $489,201 into the Airport 2000A Debt Service Fund No. 4640 and $19,647 into the Airport 2000B Debt Service Fund No. 4641 for debt service payments on airport improvements; and amending the FY 2002-2003 Capital Budget adopted by Ordinance No. 025144 to increase appropriations by $508,848. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, and Scott, voting "Aye"; Noyola abstained; Neal was absent. 13. ORDINANCE NO. 025520 Ordinance appropriating $5,589 in the Airport Grants Fund No. 1055 for law enforcement training. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, and Scott, voting "Aye"; Noyola abstained; Neal was absent. Minutes - Regular Council Meeting October 14, 2003 - Page 4 15.a. MOTION NO. 2003-363 Motion authorizing the City Manager or his designee to accept a grant in the amount of $26,597 from the State of Texas, Criminal Justice Division for fourth year funding for the Computer Forensics Specialist Grant and to execute all related documents. The foregoing motion was passed and approved with the following vote: Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Neal was absent. 15.b. ORDINANCE NO. 025522 Ordinance appropriating $26,597 from the State of Texas, Criminal Justice Division in the No. 1061 Police Grants Fund for fourth year funding for the Computer Forensics Specialist Grant; and appropriating $5,816 from the No. 1061 Law Enforcement Trust Fund as grant matching funds; and transferring $28,225 from the No. 1020 General Fund and appropriating it in the No. 1061 Police Grant Fund as matching grant funds. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Neal was absent. 16. ORDINANCE NO. 025523 Ordinance authorizing the City Manager or his designee to execute a Use Privilege Agreement with Valero Refining -Texas, L.P. for the right to install, operate, maintain and remove two (2) - 4" steel pipe casings containing fiber optic conduits, under nine (9) city public street rights-of-way (ROW) as follows: Dunn Meaney Road, 135' south of Up River Road right-of-way; Lantana Road, 114' south of Up River Road right-of-way; McBride Lane, 450' south of Up River Road right-of-way; Up River Road, 40' east of McBride Lane right-of-way; McBride Lane, 135' south of Up River Road right-of-way; Up River Road right-of-way (STA. 105+91); Dunn Lane, 483' south of Up River Road right-of-way; Navigation Boulevard, 354' south of Up River Road right-of-way; Up River Road, 488' southwest of Savage Lane right- of -way; and one 6" steel pipe casing with two fiber optic conduits within the casing, along the Up River Road right- of-way (STA. 67+56.1 to STA. 90+74); establishing a fee of $11,747.70; and requiring Valero Refining -Texas, L.P. to comply with the specified conditions. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Neal was absent. Mayor Pro Tem Chesney opened discussion on Item 5 regarding a change order with Jalco Incorporated for the North Navigation Boulevard Pumping Plant. Council Member Garrett asked why this change order was necessary. City Engineer Angel Escobar explained that while crews were in the process of installing a 36 -inch water line, it was discovered that there were two dead-end lines Minutes - Regular Council Meeting October 14, 2003 - Page 5 that needed to be connected at Omaha Street in order to facilitate the pressure and the circulation of the water. He said that the work required a 100 -foot bore under the railroad. Mr. Escobar stated that since the contractor was already working in the vicinity, staff was recommending this change order to allow them to complete the additional work. Council Member Garrett expressed his concern that although the city was awarding contracts to the lowest bidder, the Council was later being asked to approve change order after change order that increased costs and consequently negated any real savings. Assistant City Manager Massey replied that the Council was going to see more change orders related to water line work, because staff was closely monitoring the water line system to ensure that there were sufficient connections to enable staff to isolate the system. He said that in most instances, the change orders were a result of staff requesting additional work. He said that it was less expensive to add work to an existing contract than issue a new contract. Mr. Massey noted that there were limits on how much the city can amend an existing contract, approximately 25 percent under the state's bidding laws. Council Member Garrett emphasized that he would like staff to ensure that any change orders were needed. He also asked staff to try to anticipate the amount and type of work needed before the bid process. City Secretary Chapa polled the Council for their votes as follows: 5. MOTION NO. 2003-360 Motion authorizing the City Manager or his designee to execute Change Order No. 2 with Jalco, Inc. , of Houston, Texas in the amount of $53,300 for the North Navigation Boulevard Pumping Plant Contract Three - 36" Diameter Water Transmission Main (North Navigation Boulevard Pumping Plant to Caldwell Street Pumping Plant). The foregoing motion was passed and approved with the following vote: Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Neal was absent. Mayor Pro Tem Chesney opened discussion on Item 6 regarding an architectural/engineering services contract for the airport terminal project. Council Member Scott asked when all the work on the airport would be completed. Mr. Dave Hamrick, Director of Aviation, replied that the completion date for the work would be delayed because of poor weather. He said that staff anticipated one more week of work to complete the paving and lighting improvements, and an additional few weeks to complete the landscaping in the parking lot. Mr. Kevin Stowers, Assistant Director of Engineering, added that there was additional work planned for the entrance roadway, and the city had received a grant from the state highway department for additional landscape enhancements on Hwy. 44 facing the airport. Mr. Hamrick stated that a realistic completion date for all the work, except the covered parking lot, was the end of January 2004. City Manager Noe added that staff was planning to provide the Council with a briefing on the status of all the airport proj ects. Minutes - Regular Council Meeting October 14, 2003 - Page 6 City Secretary Chapa polled the Council for their votes as follows: 6. MOTION NO. 2003-361 Motion authorizing the City Manager or his designee to execute Amendment No. 16 to the architectural/engineering services contract with M. Arthur Gensler, Jr. and Associates, Inc., of Corpus Christi, Texas in the amount of $150,350 for additional construction phase services for the Corpus Christi International Airport Terminal Project. The foregoing motion was passed and approved with the following vote: Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, and Scott, voting "Aye"; Noyola abstained; Neal was absent. Mayor Pro Tem Chesney opened discussion on Item 8 regarding a change order for a street resurfacing project on Ayers Street and Gollihar Road. Council Member Scott asked if this project was similar to the work that had been done on Alameda Street and Weber Road. City Engineer Escobar replied affirmatively. Council Member Scott replied that he was concerned about the quality of the work that had been completed on Alameda Street, especially between Texan Trail and Doddridge Street. With regard to Weber Road, he said that it was especially bad near McArdle Road. He asked why the streets in question needed to be patched so frequently. Mr. Escobar replied that some of the problems were related to work on utilities that were located underneath the roads. He said that under this change order, the city was replacing the water line on Ayers Street so that there would be no further problems. In addition, he said that on the Gollihar, Ayers, and Up River Road projects, the city was spending a considerable amount on utility work to relocate those water and sewer lines, wherever possible, outside of the paved area. (Mayor Neal arrived at 2:35 p.m.) Council Member Scott asked if staff was addressing the problems with the quality of the work on Alameda Street between Texan Trail and Doddridge, possibly by contacting the contractor. Mr. Escobar replied affirmatively, saying that staff had contacted the contractor on three issues related to the manhole rehabilitations that had been completed. He said that the system was not functioning properly. He stated that the manufacturer of the system had been contacted to repair it. In response to Council Member Scott's additional concerns about the street department's quality of work, City Manager Noe said that the street department was grossly underfunded for street maintenance. He said that if the city wanted the streets to last longer than 10 years, they needed to maintain them on a regular basis, especially arterial streets. At this time, the city did not have the funding stream to complete a street maintenance program. He noted that besides storm drainage, street maintenance was a long-term need that sorely needed to be addressed. Council Member Javier Colmenero asked how staff was going to address the problems on Ayers Street near the Mission Shopping Center. City Engineer Escobar replied that a portion of Ayers Street, from Port/Ayers to Horne Road, would be reconstructed and leveled, with new asphalt, new striping and complete manhole adjustments. Council Member Noyola said that he had received many complaints about this area as well. Mr. Escobar added that the city was coordinating its work Minutes - Regular Council Meeting October 14, 2003 - Page 7 on Ayers with TxDOT as part of the Crosstown Expressway extension. Council Member Cooper stated that at yesterday's town hall meeting, complaints about the conditions of the city's street was a frequently raised topic. Ms. Cooper said that the city needed to focus on addressing the street issues for Bond 2004 because the problems were severe and widespread. City Secretary Chapa polled the Council for their votes as follows: 8. MOTION NO. 2003-362 Motion authorizing the City Manager or his designee to execute Change Order No. 3 with King Isles, Inc., of Corpus Christi, Texas in the amount of $667,105.25 for the Street Resurfacing Project on Ayers Street (South Padre Island Drive to Port Avenue); and Gollihar Road (Crosstown to Kostoryz Road). (BOND ISSUE 2000) The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". Mayor Neal opened discussion on Item 14 regarding the Airport Capital Reserve fund. City Secretary Chapa stated that this item needed to be amended to read "the FY 2003-2004 Operating Budget adopted by Ordinance No. 025394", rather than "the FY 2002-2003 Capital Budget adopted by Ordinance No. 025144". A motion was made, seconded and passed to amend the ordinance as noted. City Secretary Chapa polled the Council for their votes as follows: 14. ORDINANCE NO. 025521 Ordinance appropriating $48,000 in the Airport Capital Reserve Fund No. 4611 from fund balance for vehicles for the airport; and amending the FY 2003-2004 Operating Budget adopted by Ordinance No. 025394 to increase appropriations by $48,000. An emergency was declared, and the foregoing ordinance was passed and approved as amended with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, and Kinnison, voting "Aye"; Scott was absent; Noyola abstained. * * * * * * * * * * * * * Mayor Neal deviated from the agenda and referred to Item 2. appointments were made: Corpus Christi Convention and Visitors Bureau Dave Hamrick (Appointed) Ethics Commission James Cramer (Appointed) Robert Corrigan (Appointed) Joe Guzman (Appointed) The following board Sister City Committee Valerie Ballesteros (Reappointed) Hsiu-Jung "Mindy" Chang (Appointed) Amanda Haney (Appointed) Minutes - Regular Council Meeting October 14, 2003 - Page 8 Gloria Perez (Reappointed) Rev. Dr. Raymond Kiser (Reappointed) * * * * * * * * * * * * * Mayor Neal deviated from the agenda and referred to Item 19. A motion was made, seconded and passed to open the public hearing on the following zoning case: Case No. 0603-08, Robert and Dahlia Schulte: A Specific Use Permit for a Bed and Breakfast Home with Special Events on Markamay Estates, Lot 2, located on the west side of Ocean Drive approximately 200 feet south of Hewit Drive. (Tabled on 08/19/03) City Secretary Chapa said the Planning Commission recommended the approval of a Specific Use Permit for a Bed and Breakfast Home with Special Events subject to a site plan and twelve (12) conditions. Mr. Michael Gunning, Director of Planning, stated that this case had been tabled to this date on August 19, 2003. He said that this application was the first received under the new Bed and Breakfast ordinance, which allowed applicants to seek a special events permit under the Special Use Permit section. He noted that the ordinance required that the number of rooms not exceed five persons or ten lodgers, and a list of conditions that had to be met. Mr. Gunning stated that 35 notices had been mailed out to property owners within a 500 -foot radius of the property. Of these 35 notices, he said that eight were returned in favor from within this radius, and two in favor from outside the 500 -foot radius; and eight notices were returned in opposition within the radius, plus 49 signatures on a petition for residents living outside the 500 -foot radius. Mr. Gunning advised the Council that as part of the requirement to act on this case, they needed to make a finding that the special event permit would not adversely affect the uses of the adjacent and neighboring properties, based on the evidence presented by the applicant. He said that the finding would need to be made first as a part of the motion. Council Member Garrett asked about Condition 7 of the Special Use Permit, related to off- site parking. Mr. Gunning explained the only on-site parking allowed was for the owners of the house and the bed and breakfast tenants. All other parking for special events would be required to be valet parking. He understood that the applicant had made an arrangement with a nearby church to use their parking lot for valet parking, provided that there was not conflict with the church's use. Council Member Cooper remarked that she knew of an event that had taken place there this weekend. She thought that the applicant was not allowed to hold any special events until the public hearing and vote today. Mr. Gunning replied that Mr. Schulte said that he had provided a list of events that he had already committed to doing to Code Enforcement. Mr. Gunning stated that he had advised Mr. Schulte not to hold any special events until the issue was resolved. Ms. Cooper stated that she was against the zoning change because she did not believe that the city could ensure that there would be no adverse affect on the adjacent and neighboring Minutes - Regular Council Meeting October 14, 2003 - Page 9 properties if the special use permit was granted. She felt that it was inappropriate to allow for a commercial use in a residential area, regardless of the type of neighborhood. She pointed out that although the Planning Commission had set 12 restrictions on the special use permit to lessen the adverse effect on the neighborhood, she did not think it would be possible for the city to police them on a consistent basis. Mr. Gunning clarified that the Bed and Breakfast permit was not being opposed. The main opposition was to the special events permit. Council Member Kelly asked if the Council could approve the Bed and Breakfast permit without the special events permit. Senior Assistant City Attorney Curtis replied affirmatively. Council Member Chesney asked for a brief history on the case to date. He also asked Mr. Gunning if the Schultes had been notified in writing that they were not to hold any more special events until their case had been heard. Mr. Gunning replied that he had not sent them anything in writing, but he had spoken to them and had made this point clear. Council Member Chesney asked if they had mentioned any outstanding special events at that time. Mr. Gunning answered that he did not recall any mention of special events. Council Member Noyola asked about Condition 4 regarding the number of special events, which was limited to 40. He commented that this was a fair amount. To address the policing issue, Mr. Noyola suggested that another condition be added to require the applicant to notify Code Enforcement prior to an event. He thought that the Schultes were doing everything possible to abide by the regulations for the permit. He emphasized that the permit was only for a year. He thought that city would benefit from the business that the special events would generate. In conclusion, he said that he supported the Planning Commission's recommendation. In response to Council Member Colmenero's question, Mr. Gunning said that Mr. Schulte felt that the ability to hold special events was an important part of his acquisition of the home. Mr. Colmenero asked how the city was going to handle policing and enforcement of the conditions of the permit if the Council approved the ordinance. Mr. Gunning replied the city relied heavily upon the residents of the neighborhood to inform them when the applicant was out of compliance. He said that he did not anticipate that a code enforcement officer would be present at the site whenever they had an event. He felt that the normal enforcement procedures should be followed for this case. Thus, Mr. Gunning said that an excessive amount of complaints would impact the applicant's ability to renew their permit. Council Member Kelly asked if the property was zoned for the sale or consumption of alcohol. Mr. Gunning replied that the property was zoned for the consumption of alcohol only, not the sale. In response to Mr. Kelly's questions, Senior Assistant City Attorney Curtis explained the findings in more detail. Mayor Neal asked the applicant if he would like to speak. Mr. Bob Wallace, 350 Grant, representing the applicant, pointed out that a land -use statement had been created as a result of conversations with the neighborhood on what types of uses they would support. He said the statements had been signed by many of the neighbors directly adjacent to the property. He remarked that the one-year application was unusual, but his client had asked for one year to prove himself to the community. Minutes - Regular Council Meeting October 14, 2003 - Page 10 Mr. Bob Schulte, the applicant, spoke in defense of his operation. He said that a series of anonymous letters had been distributed to their neighbors making false allegations. He said he and his wife had spent an enormous amount of energy to refute the false claims. He said that he and his wife were committed to running their business in a respectful manner by obeying all necessary regulations. Mayor Neal asked for public comment. Mr. Jack Gordy, 4118 Bray, spoke regarding his concern that there was adequate parking and his contention that Ocean House was behind on its hotel motel taxes. The following individuals spoke against the change in zoning: Ms. Brooke Sween -McGloin, 3301 San Antonio; Ms. Mary Albarado, 3233 Ocean Drive; Dr. Katherine Hirschman, #33 Hewit Drive; Ms. Keleigh Sasser, #45 Hewit Drive; and Mr. Joe Mueller, #39 Hewit Drive. The following individuals spoke in support of the change of zoning: Mr. and Mrs. Dan Kern; Ms. Donna Guzman; Mr. Jess Cole, 4850 S. Oso Parkway; and Mr. Bill Pettus, 102 Alta Plaza. In response to Council Member Scott's question, Mr. Schulte stated that there no deliveries made using the back alley. Council Member Colmenero asked how the limit on the number of events per year (40) had been determined. Mr. Gunning replied that the Schultes had determined the number based on their discussions with their neighborhood residents. A motion was made, seconded and passed to close the public hearing. A discussion ensued on how best to make the findings before a motion was made. Council Member Scott asked what staffs recommendation was on this item. Mr. Gunning replied that staff's position was that commercial ventures were inappropriate in a residential neighborhood, because they were difficult to enforce and often had adverse impacts on the neighborhood. City Manager Noe pointed out that this was the first time the ordinance had been implemented in terms of granting a permit. He said that when the ordinance was drafted, the approach was that the findings would be based on the comments from the citizens and the efforts that the applicant would make with his adjoining property owners. Council Member Kelly observed that the property owners immediately adjacent seemed to be in favor of the change, but those properties further removed were opposed. Mayor Neal proposed that the Council first vote on the application for the Bed and Breakfast Home only to see if it would pass. He remarked that most of the opposition was against the special use permit. Mayor Neal made a motion to amend the zoning ordinance to show that the City Council find that the requirements of Sections 25A-1.03 and 25A-3.03 are satisfied and grant a Specific Use Permit (SUP) for a Bed and Breakfast Home on Lot 2, Markamay Estates, subject to a site plan and 8 conditions. Council Member Colmenero seconded the motion. Minutes - Regular Council Meeting October 14, 2003 - Page 11 City Secretary Chapa polled the Council for their votes as follows: 19. ORDINANCE NO. 025524 Amending the Zoning Ordinance, upon application by Robert and Dahlia Schulte, by changing the zoning map in reference to Lot 2, Markamay Estates, (currently zoned "R -1A" One -Family Dwelling District) by granting a Specific Use Permit for a Bed and Breakfast Home; amending the comprehensive plan to account for any deviations from the existing comprehensive plan. An emergency was declared, and the foregoing ordinance was passed and approved as amended with the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye"; Cooper voting "No". Council Member Scott then made a motion to further amend the zoning ordinance to say that the City Council find that the requirements of Sections 25A-1.03 and 25A-4.03 are satisfied and grant a Specific Use Permit (SUP) for a Bed and Breakfast Home with Special Events on Lot 2, Markamay Estates, subject to a site plan and 12 conditions; and subject to the following two additional conditions: 1) applicant must give the city's code enforcement officer 48 hours notice prior to each event; and 2) if any condition is violated, then the SUP can be revoked upon review by the Judge of the Code Enforcement (Environmental) Municipal Court, acting as a hearing officer. The motion to amend was seconded by Council Member Kelly. City Secretary Chapa polled the Council for their votes on the ordinance as amended and stated. The ordinance failed 5-4, with Mr. Garrett, Mr. Kelly, Mr. Noyola, and Mr. Scott casting the dissenting votes. Mayor Neal called for a brief recess. * * * * * * * * * * * * * Mayor Neal called for petitions from the audience. Ms. Betty Holt, 237 Lola Johnson Road, spoke regarding lowering the speed limit for Laguna Shores Road. * * * * * * * * * * * * * Mayor Neal deviated from the agenda and referred to Item 17. A motion was made, seconded and passed to open the public hearing on the following item: 17.a. Public hearing to consider a text amendment to the Zoning Ordinance related to the "I-2" Light Industrial District by adding Subsection 20-3 Objectionable Use; authorizing storage of explosives used for perforating or fracturing (fracing) oil and gas well casing only upon approval of the Zoning Board of Adjustment and issuance of Federal Explosives Permit and City Fire Marshal Permit. No one spoke in opposition to the text amendment. A motion was made, seconded and passed to close the public hearing. Minutes - Regular Council Meeting October 14, 2003 - Page 12 City Secretary Chapa polled the Council for their votes as follows: 17.b. FIRST READING ORDINANCE Amending the Zoning Ordinance by revising Article 20, "I-2" Light Industrial District regulations by adding Subsection 20-3 Objectionable Use; authorizing storage of explosives used for perforating or fracturing (fracing) oil and gas well casing only upon approval of the Zoning Board of Adjustment and issuance of Federal Explosives Permit and City Fire Marshal Permit. Mayor Neal referred to Item 18, and a motion was made, seconded and passed to open the public hearing on the following item: 18.a. Public hearing to receive input concerning the adoption of an ordinance to participate in the Texas Enterprise Zone Program as amended by the 78th Texas Legislative Session and to consider and nominate CITGO Refining and Chemicals Company, L.P. to the Office of the Governor Economic Development and Tourism as a Texas Enterprise Zone Project. Mr. Mark McDaniel, Executive Director of Support Services, explained that this item provided for the nomination of the new $458 million Clean Fuel Project by CITGO, beginning in 2004. He said that since the project was above $250 million and expected to retain 500 jobs, the project was eligible for a Triple Jumbo designation, which tripled the award or rebate for sales use taxes. Mr. McDaniel stated that the city was eligible, under its Enterprise program, for six projects per biennium. He said that the Triple Jumbo would use three of these six allocations. He said that staff was recommending the passage of the ordinance in the next item. He introduced Ms. Karen Richmond, residing at 1343 Spyglass in Austin, TX and representing CITGO, to provide more information on the project. Council Member Kinnison commented that it did not appear that these rebates would have any detrimental effect on the city's revenues. Mr. McDaniel replied affirmatively, saying that the project would add value to CITGO's property, allowing the city to increase its revenues. Mr. Jesse Garcia with CITGO thanked the Council for their consideration and support. Minutes - Regular Council Meeting October 14, 2003 - Page 13 A motion was made, seconded and passed to close the public hearing. City Secretary Chapa polled the Council for their votes as follows: 18.b. ORDINANCE NO. 025513 Ordinance authorizing the City of Corpus Christi to participate in the Texas Enterprise Zone Program under the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code (Act); providing tax incentives; requesting that Corpus Christi 2000 Enterprise Zone remain in effect; nominating CITGO Refining and Chemicals Company, L.P. to the Office of the Governor Economic Development and Tourism (EDT) through the Economic Development Bank (Bank) for designation as a Qualified Business and Triple Jumbo Enterprise Project (Project) under the Act; and designating a liaison for overseeing Enterprise Projects and communicating with interested parties. An emergency was declared, and the foregoing ordinance was passed with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". ************* Mayor Neal deviated from the agenda and referred to Item 20. He noted that this item had been withdrawn by the applicant. Council Member Noyola asked when the applicant could reapply. City Manager Noe replied that there was a one-year prohibition before the applicant could reapply. 20. WITHDRAWN wvudt Ivi aHy ilvviatiOuo hvm Iln. Lai nig, l,0minks IL,umvL. i talc * * * * * * * * * * * * * Mayor Neal opened discussion on Item 22 regarding contracts for artwork to be installed in the convention center and arena area. Mr. David Ondrias, Acting Director of Park and Recreation, explained that staff was asking the Council to allow the City Manager to execute a contract with the artists for the five pieces of artwork. Mayor Neal asked if there had been any substantial changes to this item since the last time the Council had considered it. Ms. Linda Hodge, Assistant Director of Programs, responded negatively. Council Member Kinnison asked if the city had any kind of security if an artist were to die and thus be unable to complete the work as promised after receiving payment. Ms. Elizabeth Hundley, Assistant City Attorney, replied that since there was no specific performance a court could award, it would be considered a breach of contract against the estate. There were no comments from the audience. Minutes - Regular Council Meeting October 14, 2003 - Page 14 City Secretary Chapa polled the Council for their votes as follows: 22.a. MOTION NO. 2003-364 Motion authorizing the City Manager or his designee to execute a contract in the amount of $60,000 with Michael Manjarris for the complete development and installation of six works of art; including the design and fabrication of the art piece "Aztlan". The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 22.b. MOTION NO. 2003-365 Motion authorizing the City Manager or his designee to execute a contract in the amount of $225,000 with James Surls for the design and fabrication of the art piece "Six and Seven Flowers". The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 22.c. MOTION NO. 2003-366 Motion authorizing the City Manager or his designee to execute a contract in the amount of $50,000 with Mel Chin for the design, fabrication and installation of the art piece "Untitled History". The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 22.d. MOTION NO. 2003-367 Motion authorizing the City Manager or his designee to execute a contract in the amount of $90,000 with Luis Jimenez for the design and fabrication of the art piece "Southwest Pieta". The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 22.e. MOTION NO. 2003-368 Motion authorizing the City Manager or his designee to execute a contract in the amount of $25,000 with Charmaine Locke for the design, fabrication and installation of the art piece "Open Book". The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". Minutes - Regular Council Meeting October 14, 2003 - Page 15 Mayor Neal opened discussion on Item 23 regarding the management services for the Bayfront Plaza Convention Center. City Manager Noe stated that this item was the culmination of an extended dialogue with SMG, Inc. related to the assumption of responsibility for the operation of the convention center. He asked Assistant City Manager Jorge Cruz-Aedo to make a presentation on this item. Assistant City Manager Cruz-Aedo explained that this was the first amendment to the Pre - Opening Services and Management Agreement for the arena between the city and SMG, Inc. He reminded the Council that an outside consultant had recommended an extemal manager concept for the arena operations in 2000. In 2002, he said that the Council had approved the SMG contract as the manager for the arena. Mr. Cruz-Aedo highlighted the following amendment points: adds convention center to contract; five-year contract, beginning on January 1, 2004; all employees currently working for the convention center have jobs guaranteed with SMG; comparable pay and a comprehensive benefits plan; and management fee with incentives. Mr. Cruz-Aedo further said that employees who did not want to work for SMG would have the opportunity to apply with the city in a comparable position. Council Member Garrett asked if the employees would be eligible for the city's benefit package. Mr. Cruz-Aedo replied that SMG would not be able to exactly match the city's benefits plan since they are a private -sector employer. However, he said that they would provide a private -sector benefits package. Mr. Garrett asked if staffhad spoken with the convention center employees. Mr. Cruz-Aedo replied that they have spoken with employees twice, a year ago and about a week ago. Mr. Garrett said several long-time city employees were nervous about the change in management. He asked staff to make every effort to take care of these employees. Mr. Cruz-Aedo said current employees would be given a choice on what they would like to do, based on their unique circumstances and needs. He stated that whichever decision they made, they would have a job. City Manager Noe added that staff's commitment to the employees was not just that SMG would have a place for them. He said that staff's commitment was to provide current employees with a job in another department at their current rate of pay, if they chose not to work for SMG. Mr. Cruz-Aedo reviewed the following management benefits that SMG would provide: national management team; one event schedule; facility/resource sharing; site flexibility; and the facilities (Selena Auditorium, Arena and Convention Center) support each other. With regard to economic benefits, Mr. Cruz-Aedo discussed the following: cost savings - labor (10-30 percent savings, equipment and lower overhead; enhanced revenue - national marketing, optimum bookings, concentrated focus; and national resource support. In conclusion, Mr. Cruz-Aedo said that SMG was an industry specialist. They offered corporate sales support and services and had national management bench strength. Finally, he said that staff was recommending approval of the amendment to the SMG contract that would add the convention center to the arena. Council Member Kinnison asked how SMG and the Convention and Visitors Bureau (CVB) were going to coordinate their efforts when booking events. Mr. Cruz-Aedo replied that the arena Minutes - Regular Council Meeting October 14, 2003 - Page 16 General Manager has been working with the CVB to coordinate their efforts. He said that their efforts were going to be enhanced by SMG's national network, and would complement the CVB's efforts. Mayor Neal asked for public comment on this item. Mr. Tim Lyons with B&T Rents, 1321 S. Staples, presented a petition and additional information for the Council's review. He was against accepting SMG as the management company for the Bayfront Convention Center because he was concerned for the jobs of the current employees, in addition to a loss of local business. Mr. Joe Romano, Regional Vice -President for SMG, spoke in defense of his company, saying that SMG did not make a practice of firing employees six months after they were hired without cause. He said that the additional information Mr. Lyons had furnished on the SMG operation in Beaumont, TX was misleading. City Manager Noe added that SMG was the city's agent, and would run the facilities as the city wished. He said that any change in policy would be subject to the city's approval. He said no one was suggesting that the current convention center staff had done a poor job. He said the difficulty arose when there was potential for excessive duplication of efforts between the two facilities if they were to be managed separately. He said it would be more efficient and more cost- effective to run under one management structure and one system. Several council members expressed concern about the process used to obtain the signatures on the petition. Council Member Colmenero asked if SMG was committed to using local businesses. Mr. Romano stated that the key to SMG's success was doing business locally and hiring locally wherever possible. He said that all of SMG's acquisitions, contractors and subcontractors ultimately would require the approval of the client, the city. He said that SMG was not at liberty to make major policy changes without the city's approval. He said SMG must comply with all city rules and regulations, just like any other city department. Cecilia with Carousel Catering spoke in support of the current Convention Center management and expressed her concerns about SMG using local businesses. The following convention center employees spoke regarding their employment status: Mr. Armando Ortiz, 905 Lexington; Mr. Alfred Gomez, 1217 Melbourne; and Mr. Ed Salazar, 4438 Willow Street. In response to Mr. Ortiz's question, City Manager Noe said if the Council were to approve the amendment to the contract to include the convention center, then staff would speak with those employees who did not choose to work for SMG tomorrow to match them with a position in the city. He said the jobs would have equal pay. Capt. Dan Daniels, 1418 Miami, said he was a producer of trade shows and would not work with SMG if they did not allow him to chose his own vendors. Ms. Terri Cardona, 4653 Sheffield, spoke regarding her concerns that other local businesses would not want to work with SMG and vice versa. Mr. Larry Cashion with Carousel Catering, spoke regarding his concerns that SMG would not use local businesses. In response to Council Member Chesney's question, Mr. Romano said that SMG would not enforce an exclusivity contract unless the city wanted it. He said that the city had made it clear they wanted SMG to use local vendors. City Manager Noe added that in certain instances, e.g. naming rights or soft drinks, the city would allow exclusivity contracts but not for all types of businesses. Council MemberNoyola asked staff to make every effort to make the employees comfortable Minutes - Regular Council Meeting October 14, 2003 - Page 17 during this uncertain time. Council Member Kinnison remarked that an outside consulting firm had provided a report on the many advantages the city would obtain as a result of moving to private management. Council Member Cooper emphasized that the only way SMG could enforce an exclusivity contract was if the Council allowed it. She asked if a city employee who goes to work for SMG and decides that they do not like it would be given priority if they choose to return to the city. City Manager Noe said that he would look into it. City Secretary Chapa polled the Council for their votes as follows: 19. MOTION NO. 2003-369 Motion authorizing the City Manager or his designee to execute a First Amendment to the Pre -Opening Services and Management Agreement for the Corpus Christi Multi -Purpose Arena between the City of Corpus Christi and SMG, Inc., of Philadelphia, Pennsylvania to include the addition of management services for the Bayfront Plaza Convention Center beginning January 1, 2004. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". Mayor Neal opened discussion on Item 24 regarding the architectural and project management services contracts for the baseball stadium. City Manager Noe said the fees had been negotiated for the full project. He said the city was at a point where they did not want to move too quickly by spending dollars before a baseball team was finally secured. However, he said that approving these projects now would enable the city to move forward with the project on schedule for the 2005 season. He stated staff had gone through the usual RFP process to decide on these firms, and that the Ryans concurred with the choices. Mayor Neal asked for public comment. Mr. Jack Gordy, 4118 Bray, said that he understood that no money would be spent on the stadium until a team was secured. City Manager Noe clarified that the ballot language said that there would be no monies spent on construction until a team was secured. He added that the contracts authorized expenditures up to a certain amount for services. He said it was very clear that if at any point, the city elected to stop moving forward on the project, they would pay only for expenditures up to that point. He said this was a standard termination clause in the contract. Council Member Scott spoke in support of HKS, Inc. for architectural services, saying that they had completed work on major league facilities across the nation. Council Member Noyola and Council Member Kelly both expressed concern that the city was spending money on the stadium without first obtaining a team, because they understood that the city had stated that this would not occur. City Manager Noe said that he would provide copies of the ordinance along with legal opinions from both the city attorney and bond counsel to demonstrate that the city could sign these contracts. Council Member Kelly asked what would happen if the city waited two to four weeks until the Ryans were anticipated to make their announcement about a team. City Manager Noe replied that if we waited, we would not make the 2005 season. Minutes - Regular Council Meeting October 14, 2003 - Page 18 City Secretary Chapa polled the Council for their votes as follows: 24.a. MOTION NO. 2003-370 Motion authorizing the City Manager or his designee to execute an architectural services contract with HKS, Inc., of Dallas, Texas in an amount not to exceed $1,240,000 for the Professional Minor League Baseball Stadium. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". 24.b. MOTION NO. 2003-371 Motion authorizing the City Manager or his designee to execute a Project Management Services Contract with Anderson Group Construction Management, Inc., of Corpus Christi, Texas in an amount not to exceed $475,175 for the Professional Minor League Baseball Stadium. The foregoing motion was passed and approved with the following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye". City Manager Noe stated that the Neighborhood Initiative Program presentation could be rescheduled due to the late hour. The Council concurred. * * * * * * * * * * * * * Mayor Neal announced the executive sessions, which were listed on the agenda as follows: 25. Executive session under Texas Government Code Sections 551.071, 551.072 and 551.087 regarding the South Wharf Project in the Corpus Christi Marina with possible discussion and action related thereto in open session. The Council went into executive session. * * * * * * * * * * * * * The Council returned from executive session. Mayor Neal called for the City Manager's report. City Manager Noe provided a copy of the CIP map for the last three years. He also provided a memo on the status of the Downtown Management District. He said in light of the continued precipitation, both reservoirs were at overcapacity and would require more releases into the river systems. The consequence would be more crests and more flooding in our area. He said that staff was working with the county to inform residents. On the agenda for October 21, City Manager Noe said there would be presentations from the CVB, Workforce One, and a discussion on storm water capital projects and funding. Mayor Neal added that there would also be an item from the Downtown Management District, city and port study Minutes - Regular Council Meeting October 14, 2003 - Page 19 on the bayfront master plan. City Manager Noe said that staff was working on cost estimates for this project. Mayor Neal announced that the State of the City address would take place on October 15 at 11:30 a.m. in the Solomon Ortiz Center. Mayor Neal called for Council concerns and reports. Council Member Chesney announced that a roast for Council Member Henry Garrett would be held on November 12, and he asked everyone to provide him with anecdotes. He also said he had received a call about a flooding problem on Ennis Joslin near McArdle. He congratulated Council Member Noyola and his wife on the birth of their twin daughters, Vanessa and Vivien. He also wished his wife a happy anniversary. He asked for a status report on the `B -2A" zoning on the island. In addition, he asked for information on the water main break that he had brought up earlier. Finally, he asked for a copy of the traffic plans for the proposed greenbelt. Council Member Noyola paid his respects to the family of Mr. Mike Zepeda, who had passed away recently. He thanked his wife's medical staff for their work in delivering his daughters. He asked about utility poles near Tiger Lane and Carroll Lane that were not lighted. He also said he had received constituent complaints about Angela Street. He asked if there were any plans to change the name of the Selena Auditorium, and was told that there were none. He also asked staff to inform the public about the new name for the Neighborhood Services department. Council Member Kelly congratulated the Corpus Christi Ballet on their participation in the Bailando en Aire Libre program. He said that he had received a request for funding from the Cub Scouts to initiate in -school packs in the west and north sides of the city, and he asked staff for assistance. Council Member Scott congratulated Mr. Noyola on the birth of his daughters. He thanked staff for attending the town hall meeting last night, and asked them to follow-up on the list of issues raised at the meeting. Council Member Garrett spoke regarding a constituent complaint about the condition of the city's impound lot. City Manager Noe replied that he would provide a report on options to improve the impound lot. Mr. Garrett also congratulated the Noyolas. Council Member Kinnison congratulated the Noyolas and gave his condolences to the Zepeda family. He thanked TxDOT for addressing problems on 2444 with a new project to widen the roads. Council Member Colmenero congratulated the Noyolas and gave his condolences to the Zepeda family. He asked about severe flooding taking place around Trenton Street near the H.E.B. Tennis Center. He asked if staff would prioritize the needs in this area. In response to Mayor Neal's question, City Secretary Chapa said that he had asked the Council to consider attending the next Sister City trip to Japan, which would take place from November 23-25, 2003. Minutes - Regular Council Meeting October 14, 2003 - Page 20 There being no further business to come before the Council, Mayor Neal adjourned the Council meeting at 8:35 p.m. on October 14, 2003. * * * * * * * * * * * * *