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HomeMy WebLinkAboutMIN MAY 21 2002 M I N U T E S - CITY OF BEAUMONT Lulu L. Smith, Mayor Pro Tern EVELYN M. LORD, MAYOR Guy N. Goodson Andrew P. Cokinos CITY COUNCIL MEETING Becky Ames Bobbie J. Patterson May 21, 2002 Audwin Samuel Lane Nichols, City Attorney Stephen J. Bonczek, City Manager Lolita Ramos, Interim City Clerk The City Council of the City of Beaumont,Texas, met in a regular session on May 21,2002,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 Roil Call Presentations and Recognition Public Comment: Persons may speak on scheduled agenda items Consent Agenda Mayor Evelyn Lord called the meeting to order at 1:34 p.m. City Attorney Lane Nichols, gave the invocation. Councilmember Becky Ames led the pledge of allegiance. Present at the meeting were: Mayor Lord,Mayor Pro Tem Smith,Councilmembers Cokinos,Ames, and Patterson. (Councilmember Samuel arrived at 1:39 p.m. and Councilmember Goodson was absent.)Also, presentwere Stephen J. Bonczek,City Manager;Lane Nichols,City Attorney; Lolita Ramos, Interim City Clerk; and Terri Hanks, City Clerk Administrative Assistant. Presentations and Recognitions On behalf of the Vietnam Veterans of America and the Associates of the Vietnam Veterans of America Southeast Texas Chapter 292,Ms.Sandra Womack presented Council with American flag pins and extended invitations to the Annual Watch Fire Memorial Day and POW/MIA Candlelight services. For proper disposal, Ms.Womack called on all citizens to donate their worn and tattered flags at Sunday's flag retirement ceremony and detailed the many weekend events honoring veterans, and stated Memorial Day is a day to honor veterans for their ultimate sacrifices. (Councilmember Samuel arrived at 1:39 p.m. during Ms. Womack's presentation.) Public Comment: Persons may speak on scheduled agenda items Ms. Pearlie Marks, addressed Council concerning the structure at 1043 Ewing Street and Mayor Lord instructed her to speak during the Public Hearing section of the meeting. Mr.Jeffery Simmons,3350 Briar Court,addressed Council concerning the structure at 7990 Homer Drive (Agenda Item No. 1). Mr. Simmons stated his company, Community Homes, buys and refurbishes properties for resale, recently gained title to the property at 7990 Homer, and is prepared to pay back taxes and start refurbishing the home. He requested Council consideration to refurbish the home. Approval of minutes - May 14, 2002 Confirmation of committee appointments - No appointments made. A) Authorize the City Managerto execute the(Texas Department of Transportation)Form ROW U-43,the Three Party Utility Agreement forthe Mobil Pipe Line Company, Exxon-Mobil Oil Corporation, Mobil Vanderbilt-Beaumont Pipeline Company and Exxon-Mobil Corporation (MR)on the FM 364 Major Drive Improvement Project(from Humble Road to Interstate 10)- Resolution No. 02-111 B) Authorize the acceptance of two(2)water line easements providing access forfire prevention services(conveyed from Westgate Memorial Baptist Church-6220 Westgate Drive-Tract 3-A,Block C,T. H. Langham Estates out of H.Williams Survey,Abstract 56; and Redeemer Lutheran Church - 4330 Crow Road - Tract 36A, Plat D-23 out of the Frederick Bigner Survey, Abstract 1) - Resolution No. 02-112 C) Authorize the City Manager to execute an agreement for sponsorship of the City's July 4th Celebration (with KFDM-TV in the amount of$25,000) - Resolution No. 02-113 Council member Cokinos moved to approve the Consent Agenda. Mayor Pro Tern Smith seconded the motion. MOTION PASSED. Ayes: Mayor Lord, Mayor Pro Tern Smith,Councilmembers Cokinos,Ames, Samuel, and Patterson Nays: None GENERAL BUSINESS 1. Consider amending Ordinance 02-011 relating to the structure located at 7990 Homer Drive. Mayor Pro Tern Smith moved to approve Ordinance No. 02-033 ENTITLED AN ORDINANCE AMENDING ORDINANCE NO.02-011 TO REMOVE THE STRUCTURE LOCATED AT 7990 HOMER DRIVE FROM SECTION 2 OF SAID ORDINANCE AND ORDERING THAT THE OWNER OF THE STRUCTURE AT 7990 HOMER DRIVE ENTER INTO A WORK PROGRAM TO REHABILITATE SAID STRUCTURE; PROVIDING FOR SEVERABILITY, AND PROVIDING FOR A PENALTY. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Lord, Mayor Pro Tern Smith,Councilmembers Cokinos,Ames, Samuel, and Patterson Nays: None 2. Consider approving a resolution authorizing the City manager to execute a contract for the Water Line Replacement of Small Diameter Mains Contract-11. Council member Cokinos moved to approve Resolution No.02-114 awarding a contractto Brystar Contracting, Inc. in the amount of$259,621 replace existing water lines on Tyrrell Park Road from Fannett Road to Downs Road. Mayor Pro Tern Smith seconded the motion. MOTION PASSED. Minutes - May 21,2002 Page 2 Ayes: Mayor Lord, Mayor Pro Tern Smith,Councilmembers Cokinos,Ames, Samuel, and Patterson Nays: None Councilmember Patterson verified the installation of three additional fire hydrants at Tyrrell Park for a total of nine fire hydrants. 3. Consider approving a contract for a Tourism Assessment Study. Council member Ames it is importantto reiterate the funds used forthis expenditure are from the Hotel Occupancy Tax (HOT) fund designated for tourism related business. Councilmember Cokinos moved to approve Resolution No.02-115 awarding a contractto Chandler, Brooks, and Donahoe, Inc. in the amount of $34,220. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Lord, Mayor Pro Tern Smith,Councilmembers Cokinos,Ames, Samuel and Patterson Nays: None 4. PUBLIC HEARING: Dilapidated Structures Consider an ordinance declaring certain dilapidated structures to be public nuisances and ordering their repair or removal by the owners and authorizing the removal of certain other structures who owners failed to comply with condemnation orders. Ordinance No.02-034 ENTITLED AN ORDINANCE FINDING CERTAIN STRUCTURES TO BE PUBLIC NUISANCES AND ORDERING THEIR RENOVATION OR DEMOLITION AND REMOVAL;PROVIDING FOR SEVERABILITY AND PROVIDING FOR A PENALTY was introduced. The below listed structures have been condemned by the City Council and owners ordered to either raze or repair them within specified time frames. Reinspection of these structures has revealed a noncompliance with the Council's order. Authorization is requested from the City Council to allow the City to demolish the following one (1) structure immediately without further notification to the owners: 2510 Houston - James C. Long, owner. Authorization is requested from City Council to declare the thirty-five (35) below listed structures to be dangerous structures and orderthe owners to raze such structures within ten (10) days. If the property owner fails to comply within ten (10) days, staff requests City Council's authorization to demolish these structures withoutfurther notification to the property owner or City Council action: 2770-90 Blanchette(Commercial)-Charles A. Chevis,TRUSTEE,owner;7695 Brighton Drive-Carl E.Sears,owner; 1665 Brooklyn-Mary Harris,c/o Gloria Harris Obrien,owner; 725 Delaware-Kenneth Wayne Warren,owner;1043 Ewing-Howard Lee Marks ESTATE, Minutes - May 21,2002 Page 3 c/o Pearlie Marks,owner;715 Fulton Avenue-Louise Boxie,owner; 1190 Gill-Peter Cola ESTATE,owner;3540 Grand-Joseph Thibodeaux,owner;3360 Hall-Morris J. Ruben,Sr., owner;579 Hill-Morris J. Ruben,Sr.,owner;1795 Ives-Percy Pugh ESTATE,owner; 1905 Ives(Rear Metal Shed)-Marilyn Jean Wier,owner; 1991 Ives-Thomas H. Luke,c/o Robert Luke, owner; 3810 Johnstown (Garage) -Adie Bergeron, owner; 1985 Leight- Charles Harold Tribes, owner; 2295 Leight-Charles Freeman ET UX, owner; 870 Madison-Ann Sachitano, c/o Violet Sachitano Squyres,owner;3335 Magnolia-H. L.Turner,Sr. ET UX, owner; 11395 Old Voth Road - Eugene Oscar Foutz, owner; 2980 Palestine (Garage Apartment)-Delores Giles,owner;975 Par ry-Joseph Johnes ESTATE,owner;3159 Pine - Faye R. Richardson ESTATE, c/o Susie Robinson, owner; 3820 Pine-Almeta Newton, owner; 3445 Pine-Ruby L. Seale ESTATE,owner; 3880 Pine(Commercial)-Richard J. Savoy,Jr.,owner;5390 Pine-Forest Lawn Memorial Park, Inc.,c/o SCI Management Corp., owner; 2270 Sarah - McDonald Spencer, owner; 4205 Sparks and Garage - Oscar F. Barton ET UX,owner;2950 Texas-Leroy Guillory,Sr. ESTATE,co/Louis Guillory,owner; 3275 Texas - D. H. Villery, owner; 3486 Texas - Georgia B. Marshall, owner; 2304 Washington Blvd. - Dolores Giles, owner; 3338 West Lane (Garage) - L. J. Francis ET UX,owner;4035 Willie Mae-Claude Offard,owner;and 3685 Youngstown(Rear Garage and Collapsed House) - Donald R. Bush, owner. Authorization is requested from city Council to declare the four(4)below listed structures to be dangerous structures and order the owners to raze such structures, or enroll in a work program. If the owner fails to comply,staff requests City Council's authorization to allow the City to demolish these structures without further notification to the property owner or City Council action: 4755 Magnolia - Abbas Daneshapayeh, owner; 1883 Rivercrest - Hilda Marie Bryant, owner; 3760 Scranton - Charles Wilson, Sr. ET UX, owners; and 1050 Steve Drive - Capital Reserve Corporation, Attn: Bill Lowe, owner. The public hearing opened at 1:40 p.m. Ms. Pearlie Marks, Houston, Texas, addressed Council concerning her father's estate at 1043 Ewing Street. Ms. Marks stated herfather passed away in 1999 and drug dealers destroyed the house,and spoke of her dilemma in maintaining the house. She requested 120 days to rehabilitate the structure. Councilmember Samuel acknowledged Council's compassion in allowing opportunities and understanding of sentimental values,and requested concord if Council allows 180 days, renovations must be made to the structure. Ms. Marilyn Wier, 1905 Ives, addressed Council concerning the rear shed at 1905 Ives. Ms.Wier invoked the grandfather clause because of her family's possession of the home since 1925, and submitted 80 pages of documentation and 100 photographs of alleged violations to the City Clerk. She stated the structure is a solid oak plank garage of historical value and did not specify plans for renovation, nor request an extension of time. Mrs. Ledrouje Daneshapayeh,addressed Council concerning the structure at 4755 Magnolia. She stated the structure has been vacant since December, and has been unable to make repairs because her husband has been sick and last month he passed away. Mrs. Daneshapayeh commented being financially unable to make the repairs at this time and requested six months. Mr.Glenn Delaware,representing Capital Reserve Corporation,addressed Council concerning the property at 1050 Steve Drive. He requested ninety days to resell or rehabilitate the structure. Mr. Jude Paredez, 10620 Gage Road, addressed Council concerning dilapidated structures and was instructed to speak at the Public Comment section of the meeting. The public hearing closed at 2:12 p.m. Councilmember Samuel acknowledged efforts to improve the North End of Beaumont,which is an older area of the City, and unfortunately all of the structures addressed today are in Ward III. He restated Council's compassion towards additional time to rehabilitate the properties and did not feel comfortable in allowing additional time unless coming forward with a work plan. Mayor Lord recapped the structures addressed today,and Council made recommendations to amend the ordinance to reflect: The structures at 1043 Ewing and 4755 Magnolia be removed from the demolition list and work programs be granted to not exceed an additional 180 days; and the structure at 1050 Steve Drive be removed from the demolition list and a work program be granted to not exceed an additional 90 days. All other structures will remain at their respective status Councilmember Ames moved to approve Ordinance No. 02-034 with the above stated amendments. Councilmember Samuel seconded the motion. MOTION PASSED. Ayes: Mayor Lord, Mayor Pro Tern Smith,Councilmembers Cokinos,Ames, Smith, Samuel and Patterson. Nays: None WORK SESSION Review and discuss $30 million Waterworks and Sewer System Bond Sale, Series 2002 Dain Rauscher Financial Advisor, Mr. Frank Ildebrando,gave a PowerPoint presentation concerning variable rate debt opportunities, as shown in Exhibit"A." Mr. Ildebrando discussed bonds, short term and long term interest rates,potential arbitrage advantages,the ability to refinance at any time, the importance of managing debt,and the flexibility of variable rate debts. He referred the schedule of events being the same as a normal bond issue from 90 to 120 days,the buyers would be directly located and negotiated, and his organization would act in the capacity as placement agent. With overtwentyyears of experience, Mr. Ildebrando recommended Council consider using the variable rate debt method for the sale of Waterworks and Sewer System bonds. Council discussion included the primary disadvantage of variable rate debt is if shortterm interest rates go very high for a long period of time, the 30% guideline in a variable rate mode and the balance in a fixed rate mode, and the method not being previously considered because sale of bonds have been considered small in the financing industry. COMMENTS Councilmembers comment on various matters Minutes - May 21,2002 Page 5 Mayor Evelyn Lord announced the reception honoring Former Mayor David Moore has been postponed until such time a future date can be determined. Mayor Pro Tern Smith spoke of the difficulties in dealing with the dilapidated structures,the buildings impacting neighborhoods,and believed Council accommodates the citizens wanting to renovate the structures. She requested consideration be made toward the neighborhoods, and commended Neighborhood Services Demolition Field Supervisor Pam Loiacano and Clean Community Director John Labrie for excellent work in helping clean up the City. Councilmember Samuel also commended Demolition Field Supervisor Pam Loiacano for Clean Community's work in March and April toward addressing the concerns in the North End,stated the Magnolia Street area, particularly during the Summer growing months, happens to be one of the worse areas, and requested addressing Weed Program improvements in a work session. Councilmember Samuel presented items and concerns from the College Street Corridor meeting he attended and encouraged all residents to become involved in their communities. He reported a street light outage at Avenue D and Milam and requested a security light be installed at Fletcher Park near the gazebo to address concerns with lewd activities. Councilmember Samuel reported a water leak at Avenue C and College Street and a business at Avenue B and College Street conducting illicit activities. Mayor Lord spoke of a very busy week. She reported attending the Better Business Bureau's Torch Award ceremony,the Hurricane Conference,a Southeast Texas Regional Planning Commission meeting, a POST meeting, the Miller Library dedication ceremony, and the Teen Court Annual Banquet. The Mayor spoke of being impressed with the Weed and Seed Program. She discussed attending the Soap Box Derby at the Maury Meyer Bridge on Saturday,and reported the enthusiasm was incredible,the winners will be competing nationally in Akron,Ohio,and the City was recognized for the number of entries. Mayor Lord commended the businesses and media for sponsorship. City Manager's Report- Continuum of Care Homeless Assistance Program; Tyrrell Park Horse Stables;Sales Tax Update;Transit Shelters;Weed and See Initiative; Environmental Impact Statement; McLean Park; Preliminary 2002 Property Values Received; Budget Summit City Manager Bonczek reported the Budget Summit is scheduled for June 10 at the Tyrrell Park Garden Center. Mr. Bonczek discussed termination of the Tyrrell Park Horse Stable lease agreement with Mr.Jeff Hughes and the small business loan for$50,000 has been rescinded for non compliance with the loan requirements. The City Managergave a brief history of Continuum of Care /Homeless Assistance Program,the City of Beaumont not receiving its share of funding from the McKinney-Vento Assistant Act, taking a regional approach to create a Golden Triangle Program including Hardin, Jefferson, and Orange Counties, and the Southeast Regional Planning Commission volunteering to administerthe process. Mr. Bonczek proposed paying administrative costs for the application process from the Community Development Block Grant Program and sharing the administrative costs with the other agencies according to grant funding.City Manager Bonczek reported sales tax up .7%over last year's actual receipts and being down approximately $228,000 over budget projections, and noted the two month time lag. He announced the Environmental Impact Statement (EIS) meeting will be May 29 at Lamar University. Minutes - May 21,2002 Page 6 The City Manager spoke of a meeting with citizens living near McLean Park and their request to not have the basketball goals reinstalled,and reported a continuance to analyze and make suggestions for improvements of accessibility and security for all parks. Mayor Pro Tern Smith discussed McLean Park neighbors being very adamant in not reinstalling the basketball goals,the citizens reported loud music with fowl language being heard throughout the neighborhood, and adult outsiders using the parks, and since the basketball goals have been removed,families and children are now using the park. She also reported patrons of the Ida Reed Park blocking neighborhood driveways. Councilmember Samuel expressed appreciation for efforts made in addressing park concerns,and believed when concerns are raised,the first response to remove the basketball goals as a means of addressing concerns was inappropriate, and requested presenting the issue to Council before any type of extreme action is taken. He stated the basketball goals are not for adults, but for the children,and removing the equipment would be defeating the purpose of expending parks funds. Councilmember Samuel hoped this action will not be taken in addressing concerns for loitering or unwanted activities in the parks, recommended pursuing law enforcement action before any extreme measures are taken, and stated the situation was resolved adequately. Public Comment (Persons are limited to three (3) minutes). Ms.Marilyn Wier,address not given,addressed Council with accusations of betrayal of public trust concerning reduction of bus services and reported filing complaints with state and federal agencies for misappropriations of public funds. Mr. Frank Kiefer,3190 Willowood,addressed Council to request consideration in using the South Texas Fair Grounds as an amusement and water park, and spoke of revenue potentials. Mr. Chester Jordan, representative of the Southeast Texas Regional Planning Commission, addressed Council to express appreciation to the City Manager for assistance in forming a homeless coalition. Mr. Jordan discussed the uniqueness of providing funding for administrative costs and extended appreciation for Council support. Mr. Leo Stewart, 5485 Combs Drive, addressed Council concerning the issue of providing bus service to Tyrrell Park, job opportunities, and problems with transportation for MHMR clients. EXECUTIVE SESSION Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Lisa Jardine v. City of Beaumont Minutes - May 21,2002 Page 7 There being no further business, the meeting adjourned at 3:35 p.m. Evelyn M. Lb , Mayor ` Lofita Ramos, Ikerim City Clerk Minutes - May 21,2002 Page 8 The City of Beaumont, Texas Presentation of.- Variable Rate Debt Opportunities May zi, 2 00 RBC Dain Rauscher D Benefits of Variable Rate Debt • Historically lower cost than fixed rate debt • Diversification and balance of debt structure Not a negative credit rating factor if the strategy has reasonable exposure limits. As much as 35% in Variable Rate Debt is acceptable in some cases. • Potential Arbitrage Advantage • Ability to refinance at any time Lower future interest rates Restructure term and payout of debt service • Generally attractive to add variable rate exposure when long-term rates exceed short-term rates by 2% _ uric. I)ain Rauti<her Historically Lower Cost Than Fixed Rate • Variable rate debt has cost less than fixed rate debt in recent history. • Even if fixed rate debt was sold at the lowest interest rate of 4.82% in October of 1998, 1-year variable rate debt would have cost only 3.35%. • At no time during the past fifteen years would the average cost of variable rate debt have exceeded the cost of fixed rate debt. R t3(_ Dain Rauschcr i 10.00 Historical Fixed Rates vs. Historical Variable Rates of Interest - January 1, 1990 to the May 10, 2002 - 9.00 g.00 /'fixed hates of Interest Bond Buyer Index of 20 Muni.Bonds High:7.56% / Low:4.82% 7.00 Average: 5.90 6.00 b� 5.19 5.00 Plk 4.00 3.00 2.00 Variable Rates of Interest 1.90 AAA GO I-Year Rate 1.00 High: 5.27%r: / Low: 1.62% Average:3.61% 0.00 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 i NO RBC Dai 1)ain Rauschcr i RE Issuance of Variable Rate Debt Billions $5.8B $6 $5 $4.2B $4 2.7B $3 $2 $1.4B $1 $0 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Commercial Paper ■ Taxable Auction Rate RBC ❑ Tax-exempt Auction Rate ❑ Variable Rate Notes Dain Rates jer RBC Dain Rauscher $3090009000 CITY OF BEAUMONT Waterworks and Sewer System Revenue Bonds Series 2002 Tentative Schedule of Events MAY -2002 JUNE-2002 JULY-2002 AUGUST-2002 S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 1 1 2 3 4 5 6 1 2 3 5 6 7 8 9 10 11 2 3 4 5 6 7 8 7 8 9 10 11 12 13 4 5 6 7 8 9 10 12 13 14 15 16 17 18 9 10 11 12 13 14 15 14 15 16 17 18 19 20 11 12 13 14 15 16 17 19 20 21 22 23 24 25 16 17 18 19 20 21 22 21 22 23 24 25 26 27 18 19 20 21 22 23 24 26 27 28 29 30 31 23 24 25 26 27 28 29 28 29 30 31 25 26 27 28 29 30 31 30 Day/Date Action Participants Tuesday,May 21 City Council Reviews Financing Plan and Schedule of Events RBC,City Friday,May 31 Delivery of Financial Information to Prospective Buyers RBC,City,OBT Friday,June 7 First Draft of Financing Documents OBT Friday,June 14 Review Proposals for Stand-by Purchase Bank RBC Friday,June 21 Second Draft of Financing Documents RBC,OBT Wednesday,June 26 Conference Call to Review Financing Documents RBC,City,OBT Friday,June 28 Final Draft of Financing Documents RBC,City,OBT Wednesday,July 3 Deliver Financing Documents to City OBT Tuesday,July 9 City Council Adopts Order Authorizing the Issuance of the Bonds RBC,City,OBT Friday,July 19 Deliver Financing Document to Attorney General RBC,City,OBT Monday,August 12 Review and Approve Rates RBC Wednesday,August 14 Delivery of Bonds RBC,City,OBT PARTICIPANTS City—City of Beaumont RBC—RBC Dain Rauscher Inc. OBT—Orgain Bell &Tucker L.L.P.