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MIN AUG 07 1985 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD AUGUST 7, 1985 BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in regular session this the 7th day of August, 1985, with the following present: HONORABLE: William E. Neild Mayor G. Wayne Turner 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: Joseph D. Deshotel Councilman At Large Karl Nollenberger City Manager Tyrone Cooper Asst. City Attorney -000- The Invocation was given by Mayor Neild. The Pledge of Allegiance was led by Mayor Neild. -000- The following Consent Agenda items were considered: Approval of the Minutes of the regular City Council session held July 30, 1985; Resolution 85-228 authorizing First City National Bank of Beaumont to pledge $3,000,000 in securities as collateral for City deposits; Resolution 85-229 appointing Fred A. Simon to the Community Development Block Grant Citizens Advisory Commission, term to expire May 31, 1987 and reappointing William M. Pearson to the Planning Commission, term to expire July 31, 1987; Resolution 85-230 authorizing payment of $1106.42 to Wollach and Assocsiates for reading comprehension tests given to entry-level firefighters: Resolution 85-231 awarding a bid to Lyons Construction in the amount of $2,558.00 for the demolition and removal of four (4) dangerous structures located at 1260 Gladys, 1210 Oakland, 165 E. Plum and 235 E. Simmons (bid originally awarded to La'Fayette Spivey who withdrew his bid) ; Resolution 85-232 authorizing purchase of Parcel 233, a 2,500 square foot tract out of Lot 1, Block 19, Blanchette 2nd Addition from Terrell and Emma Henley for the amount of $24,480.00 for the M. L. King, Jr. , Parkway/Spur 380 Project, Phase III; -170- August 6, 1985 Resolution 85-233 authorizing payment $4,236.40 to the Beaumont Enterprise for publication of the August 10, 1985, election ordinance in both English ($2,046.80) and Spanish ($2,189.60); Resolution 85-234 authorizing execution of a license agreement with St. Elizabeth Hospital for construction of an orverhead crosswalk over the 2900 Block of North Street to connect St. Elizabeth's and a parking garage; Resolution 85-235 granting a four-foot permanent easement and a six-foot temporary construction easement to Southwestern Bell Telephone Company for an underground telecommunications system at Fire Station No. 9; and Resolution 85-236 authorizing the employment of Underwood, Neuhaus and Company as fiscal agent; Vinson and Elkins as bond counsel; and Orgain, Bell and Tucker as securities counsel for the sale of $4,750,000 in Water System, Sanitary Landfill and Golf Course Certificates and $15,700,000 in Street and Drainage Improvement Bonds. The Consent Agenda was approved on a motion made by Councilman Moore and seconded by Councilman Weisbach. Question: Ayes: All Nayes: None -000- Ordinance No. 85-77 amending the Animal Control ordinance was considered: ORDINANCE NO. 85-77 ENTITLED AN ORDINANCE AMENDING CHAPTER 5 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT TO PROVIDE FOR THE IMMEDIATE DELIVERY FOR OBSERVATION OF ANIMALS IN BITE CASES TO LOCAL VETERINARY HOSPITALS; PROVIDING FOR SEVERABILITY, PROVIDING FOR REPEAL AND PROVIDING A PENALTY. The . ordinance was approved on a motion made by Councilman Samuel and seconded by Councilman Weisbach. Question: Ayes: All Nayes: None -000- A resolution declaring Hebert Cemetery a public nuisance was considered. A lengthy discussion was held to determine the scope of work and the costs associated with the project - whether to develop plans and specifications for formal bidding of outside contractors or to use city crews. The resolution was deferred one week for development of cost estimates. -171- August 6, 1985 Resolution 85-237 authorizing execution of an agreement with Jefferson. County, the Lower Neches Valley Authority and Washington West Limited for participation in the construction of a bridge on Washington Boulevard at the LNVA Canal was considered. City Manager Nollenberger told Council that Jefferson County would acquire necessary property rights-of-way for any necessary water bypass or utility modifications; the LNVA would furnish labor, equipment, materials and engineering for removal of the old bridge and construction of the new bridge. He said it would be a reinforced concrete box culvert type with four (4) 8 foot by 14 foot openings to form the 28 foot roadway. He told Council the city would take care of any bridge approaches as far as paving and maintenance and that the parties would reimburse costs as necessary for the balance of the 25 percent at the end. The cost is estimated to be about $75,000 with the City's share estimated to be $18,750. Resolution 85-237 was approved on a motion made by Councilman Brumley and seconded by Councilman Turner. Question: Ayes: Ali Nayes: None -000- Resolution 85-238 authorizing an engineering services contract with Mark Whiteley and Associates for water and sewer line relocation on College Street at a cost not to exceed $90,000 ($58,000 for the design phase and $32,000 for the construction phase) was approved on a motion made by Councilman Brumley and seconded by Councilman Weisbach. Councilman Moore asked that the Minority Business Enterprise requirement be met and named before any monies are expended for this contract. Question: Ayes: All Nayes: None -000- Resolution 85-239 authorizing an engineering services contract with Schaumburg and Polk, Inc. , for water and sewer line relocation on Washington Boulevard at a cost not to exceed $46,795 ($24,570 for the design phase and $22,225 for the construction phase) was approved on a motion made by Councilman Brumley and seconded by Councilman Turner. Question: Ayes: All Nayes: None -000- Resolution 85-240 authorizing a joint agreement between the City of Beaumont (engineering and inspections at an estimated $15,800.00), Jefferson County (labor, and equipment for the rehabiitation of Georgia Street from a 20-foot asphalt street with open ditches to a 27-foot-wide asphalt street with piped-in ditches at an estimated $55,000) and Lamar University (provide money for. all materials) for the rehabilitation of Georgia Street between Callaghan and University Drive was approved on a motion made by Councilman Moore and seconded by Councilman Weisbach. Question: Ayes: All Nayes: None -172- August 6, 1985 Councilman Samuel asked the City Manager to approach the Jefferson County Commissioners to determine whether they would be willing to participate in the rehabilitation of Relbig Road. -000- COUNCILMAN TURNER: I had an interesting phone call the other evening relative to the vote Saturday and I'd asked the Manager to reiterate for us the actual cost to taxpayers for the buy-out of the lease on Delaware property. Let me get it straight in my mind once more that it is not City property now without attachment and that it would cost something to get it that way. Would you comment on that for me, please? CITY MANAGER NOLLENBERGER: When the City, back in I think it 1980 or 81, participated in the acquisition of that property for the Art Museum purposes, the payment to the County and resultant payment from the Art Museum to the City for the 99 year lease was around a $255,000 spread over three years. In addition, the County . . . so we were to buy the lease back, I assume what we would need to do is spend at least that to the Art Museum. In addition, the Art Museum demolished the building that was out there and I believe that was in the neighborhood of $50,000. I'd have to check my notes, so there is somewhere over $300,000 worth of costs that the Art Museum have into that property at this point in time. -000- MAYOR NEILD: Karl, I guess the question I would have is some of the statements in the paper and some statements I received through the mail in connection with the budget process that we are going into and it's relationship to the $20.0 million loss, could you clarify to me that . . what portion of this budget that we are dealing with is directly related to that? MR. NOLLENBERGER: Sure. In order to do that, I need to go back once again to March when the actual allocation of those losses took place and at that time what we did is we allocated $6.4 million of the $20.0 to the Transportation Improvement Program which was capital projects. Another $6.3 million got allocated to the Water Fund which was capital projects and reserves that existed in the Water Fund at that time and $7.3 million of that loss got allocated to the General Fund which . . . well, right at $2 1/2 million of that were capital projects or capital outlay which were cancelled leaving about $4.8 million to come out of the operations of the City. In summary, there are approximately, let me see, $12.7 $15.2 million of the $20.0 million came out of capital projects and reserves which existed in the City at that time and the other $4.8 million was to come out of operations of the City. -173 August 6, 1985 MR. NOLLENBERGER continued: At this point in time, we are anticipating an actual carryover deficit on September 30th to October 1st of $1.7 million. If you recall, we originally thought we'd be right around $2.3 million by September 30th of a carryover and we've been able to reduce that down at this point to a $1.7 million operating deficit in the General Fund which will be carried over into October 1st. So, that $1.7 million is part of the $7.0 aspect in the General Fund imbalance for next year. In addition, the loss of the interest income next year by not having money to invest is a factor which has to be considered in and in the General Fund that about a half a million dollars. So, right around $500,000 in the General Fund and in the Water Fund there's also about a half million and in the Debt Service Fund of the City it's also about a half million dollars. So, you are dealing with about a half million dollars in those three different locations for interest income loss in not having that money to invest. So, in summary, of the $20.0 million, $1.7 of it is actually a carryover into October 1st of next year as far as its impact on the Operating Fund and then, in addition, you've got the interest lost in the Water Fund and the General Fund of a half million each so about $1.0 million total there. So, about $2.7 million of the $8.5 million is due to the ESM situation. -000- Mr. C. L. Sherman, 585 Belvedere, representing the Tax Reductin Committee, addressed Council to request that the contracting out of the garbage and trash pickup services be reconsidered, saying that information he has obtained alleges savings to the City of $1.5 to $2.5 million. Mr. Josh Allen, 4750 Chadwick, addressed Council to express his objections to not being able to participate in the budget process, to closed door sessions, and other matters. Mayor Neild responded by saying schedules for budget review will be furnished to .everyone. Mrs. Martha Royall, 945 Central, the Reverend Timothy Henley, 1698 LaSalle, Wayne Sherman, 325 Bradford, and Gene Darst, 585 Iowa, addressed Council to urge that measures be taken to reduce the City's budget to allow for a reduction in ad valorem taxes. Mr. Arthur Randall, 4625 Bealle, addressed Council to express his concern for the proposed cut of 132 City employees and asked suggested alternatives. Mrs. Jessie Cooper, 446 Georgetown, addressed Council to request information on the proposed budget and to again request that the City discontinue the use of flouride in the City's water supply. Mr. Lindsey Walker, 2537 Calder Avenue, representing the East Texas Nature Club, again addressed Council in support of the dedication of the Delaware Street property as a park. -174- August 6, 1985 Mr. Roberto Flores, 2425 Buchanan, addressed Council to express his views for the upcoming election concerning the Delaware Street property. Mr. J. C. Leggett, 1849 Washington Boulevard, addressed Council to express his concerns for the proposed cut of 132 City employees. Mr. Al Pollans, 4445 Thomas Glen, addressed Council in support of the Beaumont Art Museum and it's proposal for the sale and development of the Delaware Street property. -000- There being no further business, the meeting was recessed before continuing with the City Council Workshop Session. -000- I, Rosemarie Chiappetta, Deputy 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 August 6, 1985. Rosemarie Chiappetta Deputy City Clerk -175- August 6, 1985