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HomeMy WebLinkAboutMIN APR 13 1999 M I N U T E S - CITY OF BEAUMONT Lulu L. Smith DAVID W. MOORE, MAYOR Bobbie J. Patterson, Mayor Pro Tern Guy N. Goodson CITY COUNCIL MEETING Andrew P. Cokinos John K. Davis April 13, 1999 Becky Ames Lane Nichols, City Attorney Ray A. Riley, City Manager Barbara Liming,City Clerk The City Council of the City of Beaumont, Texas, met in a regular session on April 13, 1999, at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 1:30 p.m. to consider the following: OPENING Invocation Pledge of Allegiance Roll Call * Presentations and Recognition Public Comment: Persons may speak on scheduled agenda items * Consent Agenda Mayor Pro Tern Patterson called the meeting to order at 1:33 p.m. The Reverend Airon Reynolds, Jr., Borden Chapel Baptist Church, gave the invocation. City Attorney Lane Nichols led the pledge of allegiance. Present at the meeting were: Mayor Pro Tern Patterson, Councilmembers Smith, Goodson, Cokinos, Ames, and Davis. Mayor Moore was out of the city. Also present were: Ray A. Riley, City Manager; Lane Nichols, City Attorney; and Barbara Liming, City Clerk. *Presentations and Recognitions One proclamation was issued, "Fifty-First Neches River Festival Week," April 18-25, 1999. *Public Comment: Persons may speak on scheduled agenda items Citizen comment was invited on the Consent and Regular agenda items. Mr. Allen Lee, 5095 Maddox, commented about the Consent Agenda and stated that his previous remarks must have made an impact, but said he still intends to file a formal complaint about the kinds of items placed on the Consent Agenda. Mr. Greg Shepherd, 7880 Stone Circle, addressed Council regarding Agenda Item 6 authorizing Beaumont Power and Light to include the City of Beaumont in its application to the Public Utilities Commission, and requested deferment until there a full Council is present and until the legislature completes its review of this item. Mr. Shepherd said Entergy is on record supporting competition done right, referred to the legislature debating this subject and has passed a bill out of Senate that is being debated in the House. If the bill passes, Mr. Shepherd said the rules for the road will be written for introducing competition in the electric industry. He also addressed questions about BP&L that include their business plan, written policies, service standards, rate schedules, cost of service debt, and proof of technical and engineering experience. Mr. Shepherd spoke about BP&L stating they have no provision to provide service to low income families at this time and claimed their interest is in large, industrial customers. He listed the services Entergy provide that includes Entergy-Assist--a program which provides over$840,000 to low-income weatherization assistance, Project-Care--a program that provides low-income utility bill assistance, low-income and senior citizen customer discounts. Mr. Shepherd claimed BP&L will be selective in the customers they choose to serve. Mr. Josh Allen, representative of Beaumont Power and Light, emphasized that there is a limited window of opportunity to have a local retail energy service, if the legislature passes the existing Senate Bill 7. He said the bill allows for a secondary company, if their application was filed before February 1, 1999. Mr. Allen stated the BP&L is not asking for a franchise today, but is asking for passage of a resolution to add the City of Beaumont to their application. If the name is filed before the close of the legislative session, Beaumont may have the opportunity for a choice of service. He stated this will not be an obligation, and there is no representation of rates. Mr. Allen spoke of not knowing the actions of the legislature or the PUC, but reiterated there is knowledge of the existing bill and the opportunity that Beaumont would lose by not adding its name to the application. He urged passage of the resolution to give citizens the freedom of choice. Consent Agenda Approval of the minutes of the regular meeting held April 6, 1999. Confirmation of committee appointments - Resolution No. 99-116 Shedrick Evans - Martin Luther King, Jr. Parkway Commission A) Approve the conveyance of properties to Statewide Consolidate Community Development Corporation, Inc. for the construction of new homes as part of the Neighborhood Revitalization Project (1125 Lincoln Street, Lot 1, out of a .4738 acre tract in David Brown League, Abstract 5; and 1085 Lincoln Street, Lot 2, out of .4738 acre tract in David Brown League, Abstract 5) - Resolution No. 99-117 Councilmember Cokinos moved to approve the Consent Agenda. Councilmember Davis seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Patterson, Councilmembers Smith, Goodson, Cokinos, Ames, and Davis Noes: None GENERAL BUSINESS Minutes;4/13/99;Page 2 1. Consider abandoning the general utility easements located in the abandoned Wallace Street right-of-way north on Buford Councilmember Davis moved to approve Ordinance No. 99-28 ENTITLED AN ORDINANCE ABANDONING THE GENERAL UTILITY EASEMENTS LOCATED IN THE ABANDONED WALLACE STREET RIGHT-OF-WAY NORTH OF BUFORD, BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Smith seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Patterson, Councilmembers Smith, Goodson, Cokinos, Ames, and Davis Noes: None 2. Consider changing the name of Plaza 10 Circle located in the Plaza 10 Addition on IH-10 North to Veterans Circle Councilmember Smith moved to approve Ordinance No. 99-29 ENTITLED AN ORDINANCE CHANGING THE NAME OF PLAZA 10 CIRCLE TO VETERANS CIRCLE IN BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Davis seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Patterson, Councilmembers Smith, Goodson, Cokinos, Ames, and Davis Noes: None 3. Consider applications for Community Development Block Grant funding and reallocation of prior years budget Mr. Riley reviewed Council considerations expressed at a recent workshop, said a resolution has been prepared to accomplish reallocation of funds into the Public Service category for the coming year and $50,000 taken from the Charlton/Pollard Public fund for other purposes. There will be a reservation of$50,000 each for the Girls Haven project and for the Charlton Pollard Public Service allocations to be approved at a later date. Funds to be approved for public service allocations would be Anayat House for$5,536, Southeast Texas Food Bank for $20,000 and the YWCA for $9,634. Councilmember Davis submitted for consideration allotting $15,000 to the Partnership Community Mental Health Center, $5,000 to the Martin Elementary School, and $5,000 to the Plymouth Village Trust Apartments. City Attorney Lane Nichols confirmed that the resolution could be amended to include these allocations. Minutes;4/13/99;Page 3 Councilmember Ames moved to approve Resolution No. 99-118 with an amendment to include funding for the Partnership Community Mental Health Center in the amount of $15,000, $5,000 to Martin Elementary School, and $5,000 to the Plymouth Village Trust Apartments, along with the original designation of$5,536 to the Anayat House, $20,000 to the Southeast Texas Food Bank, $9,634 to YWCA, with reservations of$50,000 each for the Girls Haven project and Charlton-Pollard Public Service. Councilmember Davis seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Patterson, Councilmembers Smith, Goodson, Cokinos, Ames, and Davis Noes: None 4. Consider the purchase of laptop computers for use in the Police Department Councilmember Cokinos moved to approve Resolution No. 99-119 authorizing purchase of 101 laptop computers in the amount of $1,430 each from MPAQ Information Services, Inc. for a total of$144,430 to be issued to patrol officers in the Police Department. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Patterson, Councilmembers Smith, Goodson, Cokinos, Ames, and Davis, Noes: None 5. Consider the purchase of a 20-passenger bus for use in the Clean Community Department, Community Resource Program Councilmember Smith moved to approve Resolution No. 99-120 authorizing purchase cf a 20-passenger bus from Texas Bus Center, Inc. of Austin in the amount of$59,248 for use in transporting persons in the prison work program. Councilmember Goodson seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Patterson, Councilmembers Smith, Goodson, Cokinos, Ames, and Davis, Noes: None Councilmember Davis questioned clean-up of property after razing a structure and was informed that it is the responsibility of the Clean Community Division to insure that clean-up efforts are completed. Minutes;4113/99;Page 4 6. Discussion of and possible action on a resolution authorizing Beaumont Power and Light to include the City of Beaumont in its application to the Public Utilities Commission for a certificate of convenience and necessity. Councilmember Cokinos made a motion to defer action until the legislative session in Austin ends before making a decision. Councilmember Davis said he wishes to pose questions that need to be answered by Entergy. He commented about Entergy's statement of supporting competition and questioned the type of competition they support, utilities and requirements. He expressed preference to acting on this project, but with opportunity to ask questions of Beaumont Power and Light first. Councilmember Davis stated that he feels participants should be brought in, questions answered and a vote taken, up or down. Mr. Shepherd told Council that Entergy supports competition that is done right and where all customers benefit. He stated that the legislature is trying to put together a bill that benefits everyone, not just utilities or large, industrial customers. Mr. Shepherd said competition needs to benefit everyone, and claimed that is not in BP&L's planning at this time. He spoke of limitations that are being put in certifications with separate entities to provide wires and distribution service, and would be single, not dual, certified areas. Councilmember Davis addressed comments to Mr. Josh Allen regarding information submitted by him referred to the City Attorney, said Council has no recommendation and may be a week away from receiving adequate details. Councilmember Davis expressed a concern that poor or working-class people would benefit from establishment of Beaumont Power and Light Company in Beaumont. He stated that his support will be to helping people within competition to bring rates down. If rates will not decrease, and possibly increase, there is no value in having two power companies. Mr. Allen responded that today's action is not for Council to decide if this is a benefit for one group or another. He stated that the intent has always been to serve all customers within the territory that is certificated. Action of the legislature is unknown, but the known fact is that this resolution does not bind the City to a franchise. To secure a franchise, BP&L will again have to appear before Council to answer tough questions. Mr. Allen restated that BP&L is asking for a resolution to include the City of Beaumont's name to the application because it is contiguous to the territory which is currently under consideration with the PUC. Mayor Pro Tern Patterson voiced her opinion that the importance of this issue warrants consideration with a full Council present. She stated it is not necessary to wait until the legislature rules, but deferring this item to a workshop for open testimony by both companies. Councilmember Goodson agreed that this is a compelling issue, said the legislature ends in late May and when this issue will be addressed is unknown, and concurred that BP&L is attempting to respond to the law. There has been no report out of committee, and this bill Minutes;4/13/99;Page 5 could be remolded, changed and amended, and said he supports deferment, but not until the end of the legislative session. He suggested that staff continue to monitor the bill and its status in the House regarding a hearing. He also addressed dually certificated areas not being allowed, and when the workshop occurs. Councilmember Goodson stated the importance of Council knowing exactly where legislation sits in the House or Senate. Councilmember Davis added that fairness to Beaumont Power and Light be considered in and not making them unduly wait for a Council decision. Councilmember Cokinos asked if this resolution request is similar to the one Corpus Christi denied, and the City Attorney reported that to his understanding, this resolution has not been requested there. He confirmed that a franchise request to Corpus Christi was denied last summer. After further discussion about timing of action and need for additional information, Councilmember Cokinos amended his original motion to defer this item for two weeks to a workshop. Councilmember Davis seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Patterson, Councilmembers Smith, Goodson, Cokinos, Ames and Davis Noes: None OTHER BUSINESS *Review proposed Projects Plan And Financing Plan for Reinvestment Zone Number One Mr. Riley reviewed creation of Reinvestment No. 1 in 1981 and said it has been very active in a number of projects and now is proposed to be active in another downtown project. Assistant to the City Manager Kyle Hayes addressed the City's Downtown Reinvestment Zone and proposed projects and financing plan. He said that in 1981, the Texas Tax Increment Financing Act authorized Texas cities to use Tax Increment financing as an urban revitalization tool. The City Council created a reinvestment zone in downtown Beaumont in 1982, and appointed a board of directors to oversee the TIF program. He said "the zone is basically from Main Street down to College to Trinity and north of Broadway with few zig- zags off of Trinity." Mr. Hayes outlined the basic plan of the Reinvestment Zone, the tax increment base, captured appraised value, the Projects Plan and Financing Plan, and completed projects to date, and new projects either under construction or in the planning stage as shown in Exhibit "A." The projects include: Crockett Street, Hotel Beaumont, Jefferson Theater, Municipal Court Building, and the Jefferson County Community Supervision Department. Minutes;4/13/99;Page 6 He also introduced the City's plan for street, sidewalk, landscaping and lighting improvements in downtown that will cost approximately$1,200,000 and be completed in two phases. He reported that the Reinvestment Zone Number One Board of Directors approved a financing plan on March 25, 1999, for City-sponsored projects, whereby the City will arrange a loan of $1,200,000 from local banks for the proposed improvements. They also recommended spending approximately $540,000 to compliment the Crockett Street Project. He stated that in 1998, the TIF fund generated $93,000, and the Reinvestment Zone has a statutory life of twenty years that will expire in October, 2002, unless the zone is extended through issuance of additional debt. Mr. Hayes restated that the proposed improvement costs are $1.2 million to be amortized over a 10-12 year period to extend the life of the zone to 2009-2011. He informed Council that the 1999 Projects Plan and Financing Plan will be brought back at a future meeting for adoption. COMMENTS * Councilmembers comment on various matters Councilmember Goodson reported that representatives from the Texas Municipal League are doing a wonderful job looking after interests of municipalities in a lot of major issues. As Chairman of the Sub-Committee on Annexation, Councilmember Goodson had opportunity to attend the House Land and Natural Resource Committee meeting yesterday and testify on annexation matters. He said the greatest concern for Beaumont is the maintenance of our right to annex in a smooth fashion because of our industrial contracts, and said that was clearly brought to the Senator. He said that along with five other cities, about five hours of testimony was presented, both for and against the bill. Councilmember Goodson believes the House will either substitute the Senate bill or provide their own that incorporates much of the Senate bill. As is the deregulation bill, the telecommunication franchise issue bill, this is a major issue that could affect the revenues of the City of Beaumont, as well as constituents. Councilmember Goodson expressed appreciation to Kyle Hayes, Mr. Riley, and City Attorney Lane Nichols for their input and restated that if Beaumont lost industrial contracts, it would cause approximately a $.29 to $.30 tax increase or a 45% increase. He said our representatives and senators are doing an excellent job representing our interests, but it is a matter that has very serious implications not only for large cities, but to cities such as Beaumont. Councilmember Goodson said it is very important for everyone to take every available opportunity to alert legislators of our concerns and stay abreast of the situation. Councilmember Smith reported that she and other councilmembers attended the "I Have A Dream Program," last night, and she was very impressed with the 120 young people. She said they were articulate. The two speakers, women basketball players, were very motivational, dynamic and enthusiastic. Councilmember Smith said this is a wonderful program that will continue to grow. Minutes;4/13/99;Page 7 Mayor Pro Tern Patterson agreed with Councilmember Smith's comments about the "I Have A Dream Program," and said she was proud of the mentors and 120 graduates and thanked Regina Rogers and her staff. * Public Comment (Persons are limited to 3 minutes) Mrs. Beverly Hatcher, president of the Golden Triangle Minority Business Council, 855 Florida, told Council she is proud of the partnership ventured into last year for the Business Information Center. Mrs. Hatcher stated that over 400 new clients are being served and thanked Council for their participation. She requested that $25,000 will again be allocated to the Business Center. She expressed the pride and joy she receives in being a part of this program, elaborated on the services provided entrepreneurs, distributed a packet to share with Council that included financial information from October 1, 1997, through September 30, 1998. Mr. Jim Pavlowich, an employee of Mobil Oil and Chairman of the Board of the Minority Business Council, stated there are rumors about their recent disaffiliation by the NMSDC out of Washington and New York, but said their organization is very viable and even stronger in service to minority business owners in the community. Mr. Edward Mouton, owner of Mouton's Catering at 3475 Washington Boulevard, thanked Council for support to the program and supported Mrs. Hatcher's request for continued funding. Mr. Mouton spoke of the importance of the service given to small businesses. Mr. Kenny Tinns, president of KT Maintenance, 2510 North 9th Street, expressed gratitude to Council and to Mrs. Hatcher for assistance, especially for Mrs. Hatcher's guidance. Mr. Allen Lee, 5095 Maddox, questioned status of the search for a City Manager, said Kyle Hayes would be a good interim manager, made supportive comments about the City Clerk's office, spoke of term limits for Council, recommended Benny Mendoza for a committee appointment, and told of meeting with Councilmember Davis and Mr. Billy Hadnot. Mr. Lee claimed Mr. Hadnot's structures are being demolished because of lack of police protection against individuals dealing drugs. Mr. Lee said he spoke with Lt. O'Quinn and the neighbor that complained about the structures. He claimed that Councilmember Davis could not see a structural problem with Mr. Hadnot's property and saw the improvements Mr. Hadnot has made. He spoke of legal representation for Mr. Hadnot, and referred to a section in the Code of Ordinances regarding misdemeanors, and giving Mr. Hadnot due process by granting an appeal. Mr. Lee questioned Councilmember Davis about a procedure, and Councilmember Davis told Mr. Lee that he communicated his thoughts to Inspector Pam Lociano of the Neighborhood Services Division, and said he will fulfill his commitment to insure fairness. Councilmember Davis said he could not see a structural problem, but his expertise is in the insurance business. Mr. Lee asked that Mr. Hadnot's house not be sacrificed. Minutes;4/13/99;Page 8 EXECUTIVE SESSION Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Richard Schlesinger v. City of Beaumont Ingrid Dunn v. City of Beaumont Consider matters related to employment, evaluation and duties of a public officer or employee in accordance with Section 551.074 of the Government Code: City Manager There being no further business, the meeting adjourned at 2:42 p.m. Bobbie J. Patter n, Mayor Pro Tern Barbara Liming, City Clerk Minutes;4/13/99;Page 9 City Manager's Office City of Beaumont To: Mayor and Councilmembers From: Kyle Hayes Date: April 5, 1999 Subject: Downtown Reinvestment Zone The Texas Tax Increment Financing Act of 1981 authorized Texas cities to use Tax Increment Financing (TIF) as an urban revitalization tool. Tax increment financing is most commonly associated with programs to correct urban blight and revitalize central business districts. The Beaumont City Council designated a portion of the city's downtown area as a Reinvestment Zone for the purposes of Tax Increment Financing in November 1982, and appointed a Board of Directors to oversee the TIF program. Among the requirements of the Tax Increment Financing Act are the preparation and adoption of plans for the Reinvestment Zone describing existing conditions and specifying proposed improvements and sources of financing. This document is intended to meet the legal requirement for Projects and Financing Plans and to provide a unified strategy for revitalizing the Reinvestment Zone. Once a Reinvestment Zone has been established under Texas law and is placed in service, tax increment financing operates as follows: First, a tax increment base -- the total appraised value of all real property within the zone at the time of its establishment -- is determined. As long as the zone is legally in effect, taxing entities (city, county, school districts, and other special districts) receive tax payments for property within the zone calculated only on the tax increment base amount. In other words, the appraised value of real property in the zone is effectively"frozen" for the purposes of general taxation. At this point, tax exempt Tax Increment Bonds may be sold to finance public improvements such as streets, utilities, parking or sidewalks needed to support and attract privately funded redevelopment projects. As the value of property in the zone increases in subsequent years, special taxes based on the captured appraised value -- the amount in any given year by which the current assessed value of real estate in the zone exceeds the tax increment base -- are deposited in the City's Tax Increment Fund. The Tax Increment Fund may be used to retire Tax Increment Bonds. Alternatively, the accumulated deposits in the Tax Increment Fund may be used to finance public improvements on a"pay as you go"or cost reimbursement basis. EXHIBIT "A" The Downtown Reinvestment Zone Projects Plan and Financing Plan are required by the Texas Tax Increment Financing Act. The existing Projects Plan and Financing Plan was approved by the City Council in 1994 to extend the boundaries of the Reinvestment Zone to allow for the demolition of the former LaSalle Hotel. All expenditures associated with the demolition of the LaSalle have been repaid. A Project Plan provides a summary of existing conditions and proposed future development in the zone. A Financing Plan presents estimated costs and methods of financing proposed projects. Projects completed to date with tax increment revenue are land acquisition and landscaping for the Southeast Texas Art Museum ($265,000) and Tyrrell Historical Library renovations ($430,000), as well as land acquisition of the Pearl Street property ($237,000) and asbestos abatement and demolition of the former LaSalle Hotel and parking garage on the property (274,000). There are a number of projects located in the Reinvestment Zone that are either in the planning stage or under construction that will greatly enhance the downtown area. The projects are as follows: 1) Crockett Street - The Beaumont City Council approved a Section 108 loan for the Crockett Street Project in the amount of$3,000,000 in August of 1998. The total project cost is estimated at $5,700,000. The project is the redevelopment of the "Dixie Street"commercial block in downtown Beaumont. The developers plan to redevelop the two story historic storefront buildings into a combination of entertainment, eating, and drinking establishments. Approximately 300 permanent jobs would be created upon completion of the project. Construction should begin in the Summer of 1999. 2) Hotel Beaumont - The Council approved a request from the National Development Council for Section 108 funding in the amount of$3.175 million in December of 1998. The National Development Council has plans for the complete renovation of the Hotel Beaumont, located at 625 Orleans Street. Currently, there are 75 occupied units at the Hotel Beaumont with plans to increase that number to 135 after the renovation is complete. The rehabilitation will be completed over a 12 month period and construction is anticipated to commence in the Summer of 1999. The total anticipated project cost is $7,495,000. 3) Jefferson Theater- Council approved Section 108 funding in the amount of$2,000,000 in September of 1998. Built in 1927 by the Jefferson Amusement Company as an American Movie Palace, this 1500 seat theater hosted stage and cinema events drawing audiences from southeast Texas and southwest Louisiana. The Theater will be restored as close as possible to its original design. In 1996, a concentrated effort was initiated to mobilize over 150 civic leaders and area citizens to undertake a comprehensive planning process and capital campaign with a goal of raising $3,000,000 (this is in addition to the $2,000,000 loan from the City). 4) Municipal Court Building- The City acquired the former White House building located at 700 Orleans for$126,000, and the first floor is being renovated for the relocation of the Municipal Court. The estimated construction cost is $1,550,000 and the renovation should be complete by May of 1999. 5) Jefferson County Community Supervision Department - Jefferson County is renovating the former Beaumont Independent School District Administration Building located at the corner of Neches and Wall. The estimated construction cost is $500,000 and the renovation should be completed by September of 1999. As part of the downtown revitalization effort, the City is planning street, sidewalk, landscaping and lighting improvements downtown at an estimated cost of$1,200,000. Phase I includes brick paving the sidewalks and street, and making landscaping and lighting improvements on Crockett Street between Main and Pearl. The estimated cost of the improvements is $540,000. Phase II includes sidewalk, landscaping, and lighting improvements on Orleans Street from Wall to Crockett and on Fannin between Pearl and Orleans. The preliminary cost estimate for improvements in Phase II is $560,000. The improvements in Phase II would complement the Jefferson Theatre, new Municipal Court, and Hotel Beaumont. The improvements proposed in the development concept plan will result in a more positive image for Beaumont and the downtown area and will advance the City Council's officially adopted policy of making the Central Business District a regional center of business and culture. On March 25, 1999, the Reinvestment Zone Number One Board of Directors approved a financing plan for the City-sponsored projects within the Zone whereby the City will arrange a loan of$1,200,000 from local banks for the proposed improvements. The banks will be repaid with annual tax increment revenue from the Tax Increment Fund. As a part of the $1.2 million, the Board of Directors approved $540,000 for improvements to complement the Crockett Street project. Accomplishing the projects outlined in the Projects Plan ultimately from tax increment revenue is economically feasible. The captured appraised value of the Zone produced $850,000 from 1988 through fiscal year 1998. In 1998, the TIF fund produced $93,000. The Crockett Street project is projected to generate an additional $84,000 in property tax revenues to the TIF fund annually once the project is complete. This estimate is based on the total appraised value of the buildings being renovated as part of the Crockett Street project increasing by$3,000,000. A copy of the 1999 Projects Plan and Financing Plan for the Reinvestment Zone Number One is attached for your review. At a future City Council meeting, Council will be asked to consider adopting the 1999 Projects Plan and Financing Plan for the Reinvestment Zone. The Reinvestment Zone has a statutory life of twenty years and will expire in October of 2002 unless the zone is extended through the issuance of additional debt. The estimated cost of the proposed improvements ($1.2 million) will be amortized over 10-12 years which would extend the life of the zone to 2009-2011.