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2003 01 23 WS MinutesMINUTES OF THE WORK SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN January 23, 2003 The City Council of the City of Baytown, Texas, met in work session on January 23, 2003, at 5:00 p.m. in the Council Chamber of Baytown City Hall, 2401 Market Street, Baytown, Texas, with the following in attendance: Ronnie Anderson Council Member Coleman Godwin Council Member Calvin Mundinger Council Member Don Murray Council Member Mercedes Renteria III Council Member Scott Sheley Council Member Pete C. Alfaro Mayor Gary M. Jackson City Manager Ignacio Ramirez, Sr. City Attorney Gary W. Smith City Clerk The meeting was opened with a quorum present after which the following business was conducted: Discuss the upcoming contracts with the youth sports leagues, including, but not limited to, electrical cost reimbursement, signage, and food service. City Manager Gary Jackson reminded City Council that the electrical reimbursement of the youth sports leagues began in 2002. The current budget provides funding for the purpose, but with the declining revenues, all expenditures are reviewed. Council is asked to review appropriation for electrical reimbursement prior to the leagues being presented with the contracts. Other issues to be addressed in the contracts include a time limit for the placement of advertising signs on the fences and food service issues. Staff's proposal on signage is to allow signs only on the inside of the fences and to establish a date for the start of attaching the signs to the fence and a date that the signs must be removed. Staff may propose an amendment to the sign ordinance. Staff will require a permit be issued for each concession stand. Representatives of the Health Department will meet with each league to review the foods intended to be served and the health requirements associated with each type of food. Staff will work with each league to address their needs and assure compliance with the health codes. Mayor Alfaro asked if any Council Member had any comments about the proposals related to signs and food service. No comments were offered and the discussion focused on electrical reimbursement. Council Member Murray asked if the leagues had other funding sources to pay for the electrical charges without reimbursement and about the sources of league funding. Scott Johnson, Parks Director, informed Council that less than 53,000 was reimbursed to each league during 2002. Page 2 of 3 Minutes of the Work Session — January 23, 2003 League representatives were invited to address the Council. Chris Spicola, North Little League, explained that the leagues could charge S60 for the first child and $25 for each additional sibling. The league's cost per child ranges from $250 to $260 per year. The children are allowed to participate in only one fund- raiser. The parents try to raise funds in other ways. The North league is paying $300 per month for electricity, which includes security lights in the parking lot. Corporate sponsorship is sought. At the end of the season a balance of $2,000 to $2,500 is needed to begin the next year. Gilbert Hinojosa, West Little League, explained that they pay for the electricity all year long. The season is from March through June, possibly July. The lights are used only during the season. Anita Jackson, Baytown Saints Soccer, explained that in 2002 the league paid $1,572 for electricity. More lights have been donated and will be installed. The electrical expense will increase. Lighting is necessary to participate in the league with other cities with lighted facilities. Angela Crenshaw, Girls Fast pitch Softball Association, reported that they do not pay an electric bill, rather they pay the City for the use of the fields. The fields are shared with adult softball. Council Member Mundinger suggested that the reimbursement limit be reduced to $3,000 per league. Mr. Spicola, in response to inquiries, related that any funding remaining at the end of the year is used to benefit the children, either by a party or by improvements to the facilities. Fund- raising is becoming more difficult during the current economy. Mayor Alfaro suggested that the reimbursement be reduced by one -half. Discuss the lease of the restaurant facility at Bayland Island and discuss the City's options concerning the same. Mr. Jackson stated that the restaurant, Restaurants US Enterprises, Baytown, LTD, was delinquent in rental payments. A payment of $7,000 was received on Wednesday. The rental payment was structured to cover the debt on the construction of the building and the monthly maintenance. The debt payment is $11,234 per month and the maintenance is $3,000 per month. Unless rent is paid, the payments must come from the general fund. The options available to Council were set forth in a memorandum delivered with the packet. Barry Terrell, Restaurants US Enterprises, Baytown, LTD, the tenant, spoke to Council. He has 20 years restaurant experience. He related initial problems with operating the facility; eighty percent of the kitchen equipment was replaced. Sales dropped in October and have not recovered. Current income is approximately $100,000 per month. The business at a waterfront restaurant is seasonal with business being strongest during March through September. He has participated in the community to generate business. At the current level of customer support and rentals, the business will not survive. Business at his other restaurant, T -Bone Tom's in Kemah, is down twenty percent. Council expressed concerns about subsidizing a private business, either by charging a rental that is below the cost to the City or by not enforcing the rental payments. Council Member Mundinger, along with other members of Council, expressed appreciation for the efforts of Mr. Terrell to operate the restaurant. Council Member Mundinger stated that he could not support a renegotiation of the lease. Mayor Alfaro stated that action must be taken related to the default, and then a long- term plan could be developed. If the lease is renegotiated, then there is a problem with fairness and a problem with the source of funding. Council Member Sheley suggested the debt be refinanced, and then the lease be renegotiated, shifting the maintenance to the lessee. Mr. Jackson replied that savings on refinancing would probably be minimal. Mr. Terrell suggested that the rental be a percentage of gross revenues. Page 3 of 3 Minutes of the Work Session — January 23, 2003 Mr. Jackson stated that repairs on the building are necessary. The lawsuit settlement can be used to pay for the architectural /engineering fees and the repairs to the building. If the lease is continued, the cost of repairs will be significantly higher with the contractors working "around" the business. If the proceeds are used to discharge the debt, then the improvements can be offered for sale with more flexibility. Mr. Terrell stated that closing the restaurant for repairs would be devastating to the business. Mayor Alfaro stated the options as either renegotiating the lease or terminating the lease. Council Member Anderson stated that he did not want to see the restaurant close, but a subsidy must be avoided. The City should be out of the restaurant business. Council Member Murray spoke against putting more money into the building. Council Member Mundinger opined that termination of the lease will allow other options to be considered, but continuation of the lease limits options. Council Member Godwin stated his preference for reducing the debt and keeping the business there. Mr. Jackson reminded Council that if the lease is continued, the building must be repaired. Assistant City Manager Bob Leiper informed Council that the building was designed and sealed by an engineer that the building, as designed, would meet code requirements for wind -load. Our inspectors do not have the authority to challenge an engineer's approval of the plans. Council Member Renteria stated that the restaurant should be kept open. The business should be helped. If it closes the expenses will continue and the building will just sit there. Discuss appointments. Baytown Area Community Long Range Planning Commission. Council Member Sheley stated that he had talked to Mr. Roach and received assurance of attendance at meetings. Council Member Sheley stated that he would move Mr. Roach's appointment. Growth Management and Development Advisory Commission and Planning and Zoning Commission. Council Member Anderson stated that he was not ready for action on this appointment. Adjourn. There being no further business, Council Member Mundinger moved adjournment. Council Member Renteria seconded the motion. The vote follows: Aye: Council Members Anderson, Godwin, Mundinger, Murray, Renteria, and Sheley Mayor Alfaro. Nay: None. The motion carried and the meeting adjourned at 6:28 p.m. ""I Gafy W. 9mith City Clerk