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MIN MAR 12 1985 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD MARCH 12, 1985 BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in regular session this the 12th day of March, 1985, with the following present: HONORABLE: William E. Neild Mayor Joseph D. Deshotel Councilman At Large Nell Pruitt Weisbach Councilman, Ward I Mike Brumley Councilman, Ward II Audwin Samuel Councilman, Ward III David W. Moore Councilman, Ward IV Absent: G. Wayne Turner Councilman At Large Karl Nollenberger City Manager Hugh Earnest Asst. City Manager Lane Nichols City Attorney Myrtle Corgey City Clerk -000- The Invocation was given by Mayor Neild. The Pledge of Allegiance was led by Councilman Deshotel. -000- Two proclamations were issued: "Youth Soccer Tournament Days in Beaumont" - March 30 & 31, 1985 and "Professional Social Work Month in Beaumont" - March, 1985. -000- The following Consent Agenda items were considered: Approval of the Minutes of the regular City Council session held March 5, 1985; Resolution 85-77 authorizing InterFirst Bank West-Beaumont to accept water bills for payment from citizens; and Resolution 85-78 granting a license agreement to Dresser-Ideco to temporarily store two (2) gantry cranes (each is 23 feet wide, 22 feet in height and 60 feet long) by bridging one block of South Street at a fee of $250.00, payable in advance, for a period of 90 days. The Consent Agenda was approved on a motion made by Councilman Moore and seconded by Councilman Deshotel. Question: Ayes: All Nayes: None -000- -44- March 12, 1985 Ordinance 85-27 amending the election ordinance to reflect the City joining only with the Port of Beaumont was considered: ORDINANCE NO. 85-27 ENTITLED AN ORDINANCE AMENDING ORDINANCE 85-19 TO REMOVE THE BEAUMONT INDEPENDENT SCHOOL DISTRICT FROM THE APRIL 6, 1985 JOINT ELECTION IN THE CITY OF BEAUMONT; PROVIDING FOR SEVERABILITY AND PROVIDING FOR REPEAL. The ordinance was approved on a motion made by Councilman Deshotel and seconded by Councilman Samuel. Question: Ayes: All Nayes: None -000- Resolution 85-79 authorizing sale of two (2) parcels of surplus City-owned property: Parcel 1, a 0.38 acre tract out of Lots 19 and 20, Thurlow Court Addition to Oscar Sims at $4,500.00 and Parcel 2, 2300.0 square feet out of City Tax Tract 25, Plat "N", D. Brown League, Abstract 5 (also known as southeast corner of Buford and Carroll) to Joe E. O'Fiel at $1,200.00 was approved on a motion made by Councilman Weisbach and seconded by Councilman Samuel. Question: Ayes: All Nayes: None -000- Resolution 85-80 amending the guidelines of the CDBG Commercial Rehabilitation Loan Program by increasing the maximum term of the loan(s) from ten (10) years to twenty (20) years; allowing the program to accept a second lien position on the structures to be rehabilitated; and waiving the rule requiring the owner to have purchased or contracted for purchase of property six (6) months prior to the loan application, but requiring title insurance on the property to be rehabilitated was approved on a motion made by Councilman Brumley and seconded by Councilman Deshotel. Question: Ayes: All Nayes: -000- MAYOR NEILD: In Executive Session, the Council met with its attorneys and attained a briefing of the legal procedures to date. The legall process includes an investigation of the financial procedures of the City of Beaumont and the lawyers have advised us an investigation outside their office was not advisable. To that end, the firm of Orgain, Bell & Tucker will continue its investigation and report to Council as necessary. -000- -45- March 12, 1985 Mrs. Delia Harrington, 815 Willow, addressed Council to speak in support of the City and to complain about a police officer she witnessed talking with a friend longer than she felt necessary. Mrs. Billye Gordon Rogers, Gordon's Driving School, addressed Council to request that guidelines for the CDBG Commercial Rehabilitation Loan Program be made more flexible to include small businesses in the downtown area. Messrs. Ray M. Moore, attorney at 285 Liberty Pearl Complex; Glen Butler, 3522 Washington Boulevard; Mr. Jesse J. Baker, 2950 W. Lucas; Cecil Pourner, 965 Palermo Drive; Roberto Flores, 2425 Buchanan and Al Pollans, CPA, Pollans & Cohen, addressed Council to express their concerns for the City in its potential loss of $20.0 million investment made with ESM, a Florida-bassed corporation which collapsed last Monday.., -000- Mayor Neild called an Executive Session pursuant to Section II of the Texas Open Meetings Act to be held immediately following the Council Workshop Session. -000- Mayor Neild read from a News Letter from the City Manager to be sent to City employees: "As all of you are aware by now, the City of Beaumont's investments have suffered a potentially serious setback which would result in substantial losses to the City and cause financial problems for the City government. Due to the fact that at this time we dot know the status of those funds, a freeze on hiring has been put into effect, all new contracts have been cancelled and all purchasing has been limited to only those basic supplies needed to maintain operations. I would like to meet with all employees through a series of meetings throughout the City on Friday, March 15, 1985 to provide the information to you as to what's happened as far as our inability to recover to date our $20,000,000 investment in government securities. I will be asking you to provide feedback as to your suggestions concerning any cost cutting measures you can think of, including reduction of the workweek, cutback of certain services, and salary reductions. Effective immediately, I am reducing my salary 20%. Salary cuts may not be enough and we may need to take further action in the near future. After meeting with all employees, decisions will be made by April 1, 1985 as to the actions that must be taken." (A schedule of listed departments and times for meetings, a suggestion to utilize the "Speak Up" boxes and a list of members of the Action Steering Committee to be contacted are included in the News Letter. ) -000- -46- March 12, 1985 There being no further business, the meeting was recessed before continuing with the City Council Workshop Session. -000- I, Myrtle Corgey, City Clerk of the City of Beaumont, Texas, certify that the above is a true copy of the Minutes of the regular City Council session held March 12, 1985. Myrtle Corgey City Clerk -47- March 12, 1985