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HomeMy WebLinkAboutMIN NOV 10 1998 M I N U T E S — CITY OF BEAUMOd V Lulu L.smith DAVID W. MOORE, MAYOR Bobbie J.Patterson, Mayor Pro Tem Guy N.Goodson CITY COUNCIL MEETING Andrew P.Cokinos John K.Davis NOVEMBER 10, 1998 Becky Ames Lane Nichols,City Attorney Ray A. Riley,City Manager City Clerk The City Council of the City of Beaumont, Texas, met in a regular session on November 10, 1998, 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 Mayor Moore called the meeting to order at 1:30 p.m. The Reverend Samuel Thompson, House of Prayer Missionary Baptist Church, gave the invocation. Mr. Luke Trahan (a veteran of World War II and Pearl Harbor survivor) led the pledge of allegiance. Present at the meeting were: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Goodson, Cokinos, and Davis. Councilmembers Smith and Ames were absent. Also present were Ray A Riley, City Manager; Lane Nichols, City Attorney; and Barbara Liming, Deputy City Clerk. *Presentations and Recognitions Mayor Moore invited Mr. Mike Ramsey and Mr. Rocky Chapman to make an announcement. Mr. Ramsey said they were sorry to advise Council that due to factors beyond their control, they will not be going forward with plans for ice hockey in Beaumont at this time. He said they were advised by the Lake Charles owners that they were not going to pursue a franchise in Beaumont. Since the Lake Charles owners have exclusive rights, the situation cannot be changed at this time. Mr. Ramsey told Council that the investors, which include he and Mr. Chapman, appreciate the efforts and support of Mayor Moore, the Council, Mr. Riley and his staff in promoting this opportunity for entertainment . He commended their vision and leadership. Mr. Chapman added his appreciation to Mayor Moore, Council, and Mr. Riley and everyone that worked hard behind the scenes on the project and commended Council for being progressive in their attitudes. Mayor Moore stated that as a City government, Council stands ready and willing to do what they can for the best interest of all citizens. He acknowledged the courage of Mr. Ramsey and Mr. Chapman as entrepreneurs and applauded their willingness in the endeavor to bring something new to Beaumont. Two proclamations were issued: "Veteran's Day," November 11, 1998; and "Parental Involvement Day," November 12, 1998. *Public Comment: Persons may speak on scheduled agenda items - No one wished to address these subjects. *Consent Agenda The following consent agenda items were considered: * Approval of the minutes of the regular meeting held November 3, 1998; * Confirmation of committee appointments - No appointments made. A) Approve the purchase of PVC pipe to be used by the Water Distribution Division/ Water Utilities (from Moore Supply Co. in the amount of $34,865) - Resolution No. 98-308 B) Approve the acceptance of property for the Neighborhood Revitalization Project (Lot 28, Block 4 of the Highland Park Addition, 370 South Parkway Drive, from Mrs. Louise Massey Runnels) - Resolution No. 98-309 C) Approve the purchase of property for the Walden Road Improvement Project (9,290 square feet of land out of Lot 12, Block 3 of the C. E. Smith Addition, 6405 Walden Road, for $9,145 from Mr. and Mrs. Adam F. Fontenot) - Resolution No. 98-310 D) Approve the purchase of properties for the Concord Road Improvement Project (Parcel No. 32: 0.031 acre out of Lot 5, Block 1 of the Bullock Addition, 2895 Concord Road, for compensation of$2,995 from Bessie Kettl; and Parcel No. 45A: 0.036 acre out of Lot 1A of the Babe Moore Addition, 3090 Concord Road for compensation of $8,700 from Joseph Lynn Ramey) - Resolution No. 98-311 Councilmember Cokinos moved to approve the Consent Agenda. Mayor Pro Tem Patterson seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Goodson, Cokinos, and Davis Noes: None GENERAL BUSINESS Minutes;11/10/98;Page 2 Before commencing with the regular agenda, Mayor Moore announced that Councilmember Ames is out of town on business for her company and that Councilmember Smith is also out of town. He said that he would be leaving the meeting soon to be with his wife who is in the hospital awaiting surgery. Mr. Riley introduced Mr. Frank Ildebrando of Dain Rauscher Incorporated, the City's financial advisor, and invited him to give an updated bond report to Council. Mr. Ildebrando distributed Summary of Sales for Waterworks and Sewer System Revenue Bonds, Series 1998 and 1999 as shown on Exhibit"A." Mr. Ildebrando reported that bonds from 1989 and 1992 have been refinanced and have been separated for two different sales. He said the savings expectation predicted about a month ago was exceeded with the following results: the Series 1998 Issue was $21,330,000 at a true interest cost of 4.621% and a total four-year savings of $801,806, or an average of$200,452 savings per year; and the Series 1999 Issue was $7,900,000 at a true interest cost of 4.709% and a savings of$338,675 or an average $84,669 per year. Mr. Ildebrando said the savings exceed about$50,000 per year over previous predictions, and complimented the work of the underwriters. In response to Councilmember Cokinos' query, Mr. Ildebrando explained the difference in Advance and Forward Refunding. Advance Refunding is refinancing bonds in advance of their call date. The reason for refinancing these bonds in advance is because of an excellent interest rate at this time. Some of the bonds are not eligible to be refinanced until June, 1999, therefore, a Forward Advance Refunding is set. 1. Consider approving sale of Water Revenue Bonds -Advanced Refunding Councilmember Davis moved to approve Ordinance No. 98-69 entitled an ORDINANCE AUTHORIZING THE ISSUANCE OF THE CITY OF BEAUMONT, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BONDS,SERIES 1998;AUTHORIZING THE EXECUTION AND DELIVERY OF AN ESCROW AGREEMENT AND THE SUBSCRIPTION FOR AND PURCHASE OF CERTAIN ESCROWED SECURITIES;AND CONTAINING OTHER MATTERS RELATED THERETO. Councilmember Goodson seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Goodson, Cokinos, and Davis Noes: None Councilmember Davis expressed appreciation to Mr. Ildebrando for an excellent job in saving money for the City of Beaumont, and said these kinds of happenings help the City hold the tax rate, and this is one of his priorities. 2. Consider approving sale of Water Revenue Bonds - Forward Refunding Minutes;11!10/98;Page 3 Councilmember Goodson moved to approve Ordinance No. 98-70 entitled an ORDINANCE AUTHORIZING THE ISSUANCE OF THE CITY OF BEAUMONT, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BONDS, SERIES 1999; AUTHORIZING THE EXECUTION OF A BOND PURCHASE AGREEMENT;AND CONTAINING OTHER MATTERS RELATED THERETO. Councilmember Davis seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Goodson, Cokinos, and Davis Noes: None (Mayor Moore left at 1:52 p.m. Mayor Pro Tem Patterson presided over the remainder of the meeting.) 3. Consider approving the assignment of the cable franchise from TCI Cablevision of Texas, Inc. to Texas Cable Partners, L.P. Councilmember Davis verified with the City Attorney that this vote does not involve any kind of rate increase. Councilmember Cokinos questioned the length of the contribution contract, and the City Attorney said he would check the termination date of the franchise, and that today changing the name of the operating entity from TCI to Texas Cable Partners, a partnership of TCl and Time Warner, is on the agenda for consideration. Mr. Nichols said the extension of the franchise is not affected in response to a query by Councilmember Cokinos. Councilmember Goodson moved to approve Resolution No. 98-312 Councilmember Cokinos seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tem Patterson, Councilmembers Goodson, Cokinos, and Davis Noes: None 4. Consider accepting the Grand Recap of the tax roll for the tax year 1998 Councilmember Goodson moved to approve Resolution No. 98-313 accepting the Grand Recap of the net taxable property value in Beaumont from Jefferson County Tax Assessor- Collector Miriam K. Johnson in the amount of$3,661,785,240 in accordance with the Texas Property Tax Code, Section 26.09. Councilmember Davis seconded the motion. MOTION PASSED. Minutes;11110/96;Page 4 Ayes: Mayor Pro Tem Patterson, Councilmembers Goodson, Cokinos, and Davis Noes: None COMMENTS * Councilmembers comment on various matters Councilmember Cokinos congratulated the Reverend G. W. Daniels for his service to the community as pastor of Sunlight Baptist Church for 52 years. Councilmember Cokinos said he attended a banquet honoring the Reverend Daniels and appreciates his efforts. Councilmember Davis expressed appreciation for the level of service that Kyle Hayes and staff from the Water Utilities and Public Works Departments gave in responding to citizen inquiries and a specific problem that was resolved. Councilmember Davis addressed a previous request for stronger protection against a drug problem and stated that the requests he is submitting is for grass roots citizens. Residents experiencing problems have publicly asked that a strong message be sent to the Police Department that they are requesting stronger protection with the problem. Mayor Pro Tem Patterson added her congratulations to the Reverend G. W. Daniels for his 52nd anniversary of service to the community. She also mentioned that Dr. Myron Barnes recently commemorated his 8th anniversary and congratulated the Top Teens of America in their celebration of the King and Queen Pageant this past weekend. * Public Comment (Persons are limited to 3 minutes) Mr. Michael LaFleur addressed Council regarding a structure belonging to his parents at 999 Orange Street. Mr. LaFleur received a letter regarding demolition of the structure, and said he did not fully understand the procedure outlined in the letter. Mr. LaFleur requested an extension to rehabilitate the home. Councilmember Davis told Mr. LaFleur to remain after the meeting and he would provide him with direction and information. Mr. Lynn DeMary, 430 East Elgie, on behalf of the Charlton-Pollard, the Avenues, the Heart of the City, and South Park Neighborhood Associations thanked Councilmembers for participation and support of "Neighbors Meetings Neighbors" this last Sunday. He said it was a good event with local industries explaining their risk management plans and safety measures for the community and the opportunity to meet each. Mr. DeMary thanked Council for continued support. Mr. Richard Schlesinger, 2035 Toledo, addressed Council to express concerns and complaints about harassment, disconnect notices of his water services, his payments incorrectly credited to another account, disconnect charges and his dissatisfaction with City Minutes;11 f10W;Page 5 procedures. Mr. Schlesinger said he has contacted his attorney and would like to meet with Mr. Riley or someone to find out about his rights. Mr. Schlesinger explained that he works out of town, was a former Water Utilities Department employee and has filed a discrimination suit against the City. Mr. Riley informed Council that the City is subject to a law suit at the present time. Mr. Schlesinger said he wants to discuss the water problems, not the law suit, and continued to speak about the current problem. Mayor Pro Tem Patterson asked for legal counsel regarding a meeting with staff or Mr. Riley to discuss Mr. Schlesinger's water bill, and Mr. Nichols answered that it would be appropriate to give a written response to Mr. Schlesinger as long as the law suit was not discussed. Mr. Riley interjected that there is other information pending concerning more than discussion of today, and said he would prefer not to publicly discuss the matter. Mr. Schlesinger added that he would like to see Mr. Davis as soon as possible, reviewed some areas of his complaint and out of town status requested a statement of charges. Councilmember Davis told Mr. Schlesinger he would try to call him tonight, spoke about the correctly addressing the matter, and voiced expressions of every citizen being given the right to speak. EXECUTIVE SESSION Mayor Pro Tem Patterson announced that Executive Session is canceled. *Executive Session in accordance with Section 551.071 of the Government Code to discuss contemplated or pending litigation: Joe Fontenot et al v. City of Beaumont et al *Executive Session in accordance with Section 551.074 of the Government Code to discuss the appointment and evaluation of a public officer or employee: Municipal Court Judges There being no further business, the meeting recessed at 2:10 p.m. to reconvene in executive session. May r David W. Moore Barbara Liming, Deputy City C rk Minutes;11!10/96;Page 6 THE CITY OF BEAUMONT Summary of Sales Waterworks and Sewer System Revenue Bonds, Series 1998 Principal Amount $21,330,000 Total Interest Cost 9,715,178 Net Interest Cost(Vernon's) 4.566% True Interest Cost 4.621% Refunding Total Savings $ 801,806 Present Value Savings @ 4.455% $ 746,268 Percent Savings 3.584% Average Savings Per Year(1999-2002) $ 200,452 Delivery/Dated Date: December 7, 1998 First Interest Coupon Date: September 1, 1999 Maturity Dates: September 1, 1999-2012 Average Life: 9.17 Years Waterworks and Sewer System Revenue Refunding Bonds, Series 1999 Principal Amount $ 7,900,000 Total Interest Cost $ 1,063,300 Net Interest Cost(Vernon's) 4.317% True Interest Cost 4.709% Refunding Total Savings $ 338,675 Present Value Savings @ 4.342% $ 313,363 Percent Savings 3.501% Average Savings Per Year(1999-2002) $ 84,669 Delivery/Dated Date: June 5, 1999 First Interest Coupon: September 1, 1999 Maturity Dates: September 1, 1999-2004 Average Life: 2.78 Years EXHIBIT "A" City of Beaumont--Waterworks and Sewer System Refunding Analysis Savings Report Advance Refunding—Yield Blended with Forward Refunding Dated 61511999 Dated Date 1210711998 Delivery Date 12/0711998 Maturing Proceeds @ Interest Total Escrowed FY Begins 10/01 Cumulative PV of Savings Dates Amount Issue Date Coupon Yield Amount Debt Service Debt Savings Savings 4.456649440/a 1999 485,000 488,118.55 4.000 3.100000 746,104,33 1,231,104.33 1,429,970.00 198,865.67 198,865.67 205,213.78 2000 595,000 594,476.40 3.500 3.550000 998,015.00 1,593,015.00 1,790,945.00 197,930.00 396,795.67 185,055.82 2001 615,000 615,000.00 3.750 3.750000 977,190.00 1,592,190.00 1,791,615.00 199,425.00 596,220.67 178,220.57 2002 630,000 628,884.90 3.800 3.850000 954,127.50 1,584,127.50 1,784,375.00 200,247.50 796,468.17 171,053.89 2003 860,000 _ 860,000.00 _ 4.000 4.000000 930,187.50 1,790,187.50 _ 1,789,450.00 _ __-737.50 _ 795,730.67_ 344,09 _ 2004 895,000 892,681.95 4.000 4.050000 895,787.50 1,790,787.50 1,791,325.00 537.50 796,268.17 1,200.84 2005 1,825,000 1,819,579.75 4100 4.150000 859,987.50 2,684,987.50 2,685,000.00 12.50 796,280.67 630.33 2006 1,900,000 1,992,948.00 5.000 4250000 785,162.50 2,685,162.50 2,683,750.00 -1,412.50 794,868.17 -580.05 2007 1,990,000 1,982,696.70 4.250 4.300000 690,162.50 2,680,162.50 2,682,275.00 2,112.50 796,980.67 1,794.81 2008 _ _2,080,000 _ 2,218,611.20 5.250 _ 4.400000 605,587.50 _ 2,685,587.50 _ 2,665,300.00 _ _ -267.50 796,693.17 -7.96 2009 2,185,000 2,323,135.70 5.250 4.500000 496,387.50 2,681,387.50 2,682,275.00 887.50 797,580.67 698.02 2010 2,300,000 2,444,946.00 5.250 4.550000 381.675.00 2,681,675.00 2,683,200.00 1,525.00 799,105.67 1,019.08 2011 2,420,000 2,562,949.40 5.250 4.630000 260,925.00 2,680,925.00 2,682,525.00 1,600.0 800,705.67 986.63 2012 2,550,000 2,693,182.50 5.250 4.690000 133,875.00 2,683,875.00 2,684,975.00 1,100.00 801,805.67 637.66 $21,330,000 $22,117,211.05 $9,715,174.33 $31,045,174.33 $31,846,980.00 $801,805.67 $746,267.51 Acc/nt TOTALS $21,330,000 $22,117,211.05 $9,715,174.33 $31,045,174.33 $31,846,980.00 $801,805.67 $746,267.51 BF.AU98:RUN98R NEW98R AGG98AR Prepared by.,Daln Rauscher,Incorporated--Houston,Taxes 1111011998 @ 09:13 City of Beaumont--Waterworks and Sewer System Refunding Analysis Savings Report Forward Refunding Dated Date 06/0511999 Delivery Date 0610511999 Maturing Proceeds @ Interest Total Escrowed FY Begins 10101 Cumulative Pv of Savings Dates Amount Issue Date Coupon Yield Amount Debt Service Debt Savings Savings 4.34194206% 1999 1,515,000 1,518,802.65 4.500 3.400000 89,637. 8 1,604,637.08 1,630,055.00 25,417.92 25,417.92 25,158.43 2000 1,125,000 1,133,696.25 4.500 3.850000 307,050.00 1,432,050.00 1,532,290.00 100,240.00 125,657.92 96,385.52 2001 1,170,000 1,193.481.90 5.000 4.050000 256,425.00 1,426,425.00 1,532,830.00 106,405.00 232,062.92 97,697.69 2002 1,235,000 1,253,413.85 4.750 4.250000 197,925.00 1,432,925.00 1,537,100.00 104,175.00 336,237.92 91,439.63 2003 _ 1,395,000_ _1,416,287.70 4.750 4.350000 139,262.50 1,534,262.50 _ 1,534,250.00 -12.50 336,225.42 487.10 2004 1,460,000 1,500,485.80 5.000 4.400000 73,000.00 1,533,000.00 1,535,450.00 2,450.00 338,675.42 2,194.22 $7,900,000 $8,016,168.15 $1,063,299.58 $8,963,299.58 $9,301,975.00 $338,675.42 $313,362.59 Acc In( TOTALS $7,900,000 $8,016,168.15 $1,063,299.58 $8,963,299.58 $9,301,975.00 $338,675.42 $313,362.59 BE4U98:RUN98FWD NEW98FWD AGG98FR Prepared by:Dain Rauscher,Incorporated—Houston, Texas 11110/1998 @ 09:15