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MIN AUG 13 1985 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD AUGUST 13, 1985 -- 5:30 P.M. BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in regular session this the 13th day of August, 1985, with the following present: HONORABLE: William E. Neild Mayor Joseph D. Deshotel Councilman At Large 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 Karl Nollenberger City Manager Hugh Earnest Asst. City Manager Lane Nichols City Attorney Myrtle Corgey City Clerk -000- The Invocation was given by the Reverend R. C. Buckley, Southside Assembly of God Church. The Pledge of Alleigance was led by Councilman Turner. —000- Councilman Deshotel announced that action items of the Agenda would be presented and acted upon in the City Council Chambers of City Hall as required by the City Charter but that the meeting would be moved to the Julie Rogers Theatre for the presentation of the Budget and citizen comments. -000- Bids were received for the sale of $15,700,000 City of Beaumont Street and Drainage Improvement Bonds and $4,750,000 City of Beaumopnt Water System, Sanitary Landfill and Golf Course ,Certificates of Obligation. Frank Ildebrando of Underwood Neuhaus opened and read the bids, reading the manager of each account. He told Council that "each one of these bids is submitted along with a 'good faith deposit' of $314,000. That good faith check . has already been received by me and the City will retain it after the successful bidder is awarded the bonds. $15,700,000 Bond Issue: Morgan Guaranty Trust Company, New York: Total Interest Cost Bid: $8,198,813.00 Average Effective Interest Rate: 8.3469 -176- August 13, 1985 Bid Openings for the sale of $15.7 million in bonds continued:. First City National Bank of Houston: Total Interest Cost Bid: $8,1119812.50 Average Effective Interest Rate: 8.2583 Underwood Neuhaus & Company and Republic National Bank of Dallas: Total Interest Cost Bid: $8,116,812.50 Average Effective Interest Rate: 8.2634 Goldman, Sachs & Company, New York Total Interest Cost Bid: $8,160,014.00 Average Effective Interest Rate: 8.3074 $4,750,000.00 Certificates of Obligation issue First City National Bank of Houston: Total Interest Cost Bid: $4,200,591.25 Average Effective Interest Rate: 8.9583 Underwood Neuhaus &Company and Republic National Bank of Dallas: Total Interest Cost Bid: $4,168,930.00 Average Effective Interest Rate: 8.8908 Griffin, Kubik, Stephens & Thompson, Chicago: Total Interest Cost Bid: $4,195,175.00 Average Effective Interest Rate: 8.9438 Goldman, Sachs & Company, New York: Total Interest Cost Bid: $4,161,583.75 Average Effective Interest Rate: 8.8752 These bids were referred for study and review for recommendation and action later in the session. -000- The following Consent Agenda items were considered: Approval of the Minutes of the regular City Council session held August 6, 1985; Resolution 85-241 ratifying the City Manager's execution of a commitment. for municipal bond insurance with Guaranty -Insurance Company in conjunction with refunding of general obligation bonds and certificates of obligation; Resolution 85-242 authorizing use of facsimile signatures of Karl Nollenberger, Hugh Earnest and M. Corgey for water utility accounts at Texas Commerce Bank, InterFirst Ban, InterFirst West, First City National Bank, First City National - Gateway, First City National - Central, Lamar State Bank, Parkdale Bank, MBank, Allied Bank and Beaumont Bank; -177- August 13, 1985 Resolution 85-243 authorizing purchase of Parcel 2431 7,338 square feet out of Lot 2, Block 5, Blanchette 2nd Assition from Sadie Beall in the amount of $31,465.00 for the M. L. King, Jr. Parkway/Spur 380 Project, Phase III; authorizing the City Manager to grant an easement to Kansas City Sourthern Railway Company for relocation of their railroad facilities; and authorizing execution of a deed conveying the property to the State subject to the easement; Resolution 85-244 accepting water improvements in Lots 23-36, Block 8; Lots 30- 35, Block 9; Lots 4-10, Block 10; Lots 11-20, Block 12 and Lots 1-11, Block 13 and street improvements for portions of Northmeadow Drive, Meadowbrook Drive, Westmeadow Drive, Spring Meadow Drive and Meadowick Drive constructed in Evangeline Meadow, Unit III, Phase 4, for City Maintenance; and Resolution 85-245 authorizing the moving of the Lekreiver retriever files from the Police Station to Municipal Court by Curtis Construction Company at $2.,000.00. The Consent Agenda was approved on a motion made by Councilman Turner and seconded by Councilman Brumley. Question: Ayes: All Nayes: None -000- Citizens spoke on items 3 through 12: Mrs. Marie Hubbard, 1990 Nora, addressed Council to urge favorable action in declaring Hebert Cemetery a public nuisance. Mr. Wayne Sherman, 2900 Washington, addressed Council to urge Council to allow citizen input throughout the budget process. Mrs. Olivia Gonzales, 975 Avenue E, addressed Council to request that citizens be allowed input at Workshop. -000- Ordinance No. 85-78 abandoning the east 10 feet and 65 feet of distance of the 15-foot utility easement along the western line of property at 2145 Chevy Chase (requested by Earl S. Hines for construction of a swimming pool) was considered: ORDINANCE NO. 85-78 ENTITLED AN ORDINANCE ABANDONING A 15-FOOT UTILITY EASEMENT IN LOT 7, THOMAS ROAD ADDITION, BEAUMONT, JEFFERSON COUNTY, TEXAS. The ordinance was approved on a motion made by Councilman Deshotel and seconded by Councilman Weisbach. Question: Ayes: All Nayes• None -178 August 13, 1985 Ordinance No 85-79 abandoning a 160 foot utility easement at 8595 Evangeline West Drive (Lot 23, Block 1, Evangeline West, Unit I, requested by Milton Gunn Shuffield for construction of a tennis court) was considered: ORDINANCE NO. 85-79 ENTITLED AN ORDINANCE ABANDONING A 16-FOOT UTILITY ERASEMENT AT 8595 EVANGELINE WEST DRIVE, BEAUMONT, JEFFERSON COUNTY, TEXAS. The ordinance was approved on a motion made by Councilman Turner with an amendment to retain the north 15 feet as an easement to service the sanitary sewer and manhole; motion with the amendment was seconded by Councilman Deshotel. Question: Ayes: All Nayes: done -000- Ordinance No. 85-80 canvassing the returns of the Special Election held August 10, 1985 was considered: ORDINANCE NO. 85-80 ENTITLED AN ORDINANCE CANVASSING THE RETURNS OF THE ELECTION HELD IN THE CITY OF BEAUMONT ON THE 10TH DAY OF AUGUST, 1985. Qualified voters cast ballots on the following proposition: "AN ORDINANCE TO DEDICATE A TRACT OF LAND ON DELAWARE STREET TO BE A PARK SUBJECT TO CERTAIN 99 YEAR LEASES" -- FOR THE ORDINANCE - 6,539 (61.5%) & AGAINST THE ORDINANCE - 4,097 (38.5%). The ordinance was approved on a motion made by Councilman Weisbach and seconded by Councilman Moore. Question: Ayes: All Nayes: None -000- Ordinance No. 85-81 calling an election for Tuesday, November 5, 1985 was considered: ORDINANCE NO. 85-81 ENTITLED AN ORDINANCE CALLING A SPECIAL ELECTION OF THE CITY OF BEAUMONT ON THE 5TH DAY OF NOVEMBER, 1985 FOR THE PURPOSE OF APPROVING OR REJECTING AN ORDINANCE CHANGING THE NAME OF MARTIN LUTHER KING, JR. PARKWAY AND OTHER STREETS REFERRED TO IN ORDINANCE 35-66 BACK TO THE ORIGINAL NAMES; AND APPROVING OR REJECTING AN ORDINANCE CHANGING THE NAME OF COLLEGE STREET TO MARTIN LUTHER KING, JR. BOULEVARD. —179— August 13, 1985 Ordinance No. 85-81 was approved on a motion made by Councilman Deshotel and seconded by Councilman Samuel. Question: -000- Ordinance No. 85-82 amending the. Ambulance Ordinance was considered: ORDINANCE NO. 85-82 ENTITLED AN ORDINANCE AMENDING CHAPTER 29, ARTICLE II REGULATING AMBULANCES, ADDING A DEFINITION OF A "BASIC LIFE SUPPORT AMBULANCE" AND AMENDING REGULA- TIONS; PROVIDING FOR SEVERABILITY, PRO- VIDING FOR REPEAL AND PROVIDING A PENALTY. The ordinance was approved on a motion made by Councilman Deshotel and seconded by Councilman Moore. Question: Ayes: All Nayes: None -000- Ordinance No. 85-83 amending the Junked Motor Vehicle Ordinance was considered: ORDINANCE NO. 85-83 ENTITLED AN ORDINANCE AMENDING CHAPTER 13 SECTION 15 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT CONCERNING JUNKED MOTOR VEHICLES; PROVIDING FOR SEVERABILITY; PRO- VIDING FOR REPEAL AND PROVIDING A PENALTY. The ordinance was approved on a motion made by Councilman Moore and seconded by Councilman Deshotel. Question: Ayes: All Nayes: None -000- The first reading of an ordinance annexing two (2) tracts totalling 328.478 acres located 1,160 feet east of the southern terminus of Lafin Road was held: AN ORDINANCE ENTITLED AN ORDINANCE ANNEXING THE HEREINAFTER DESCRIBED TERRITORY TO THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS, AND EXTENDING THE BOUNDARY LIMITS OF SAID CITY SO AS TO INCLUDE THE SAID PROPERTY WITHIN THE CITY LIMITS, AND GRANTING THE SAID TERRITORY AND TO ALL FUTURE INHABITANTS THEREOF ALL OF THE RIGHTS AND PRIVILEGES OF OTHER CITIZENS; AND BINDING SAID FUTURE INHABITANTS BY ALL OF THE ACTS AND ORDINANCES OF SAID CITY. -180 August 13, 1985 The ordinance was passed to its second and final reading on a motion made by Councilman Deshotel and seconded by Councilman Turner. Question: Ayes: All Nayes: None -000- Resolution 85-246 declaring Hebert Cemetery on Hegele Street a public nuisance and authorizing a one-time clean up of this area by City forces was approved on a motion made by Councilman Moore and seconded by Councilman Samuel. COUNCILMAN TURNER: I am going to vote in favor of declaring this a public nuisance because of the situation out there. I also, for the record, want it to be known that we have cleaned this area at least on two occasions and for price tags upwards of $30,000 and, for whatever reason it continues to be this way, this would be the last time I would even consider doing this particular agenda item. Question: Ayes: All Nayes: None -000- Resolution 85-247 authorizing purchase of 228 feet of 54-inch aluminum pipe at . $9,621.60 and 3 each of 54-inch sluice gates at $9,690.60 from Seabreeze Culvert, Inc. , of Stowell, Texas and 3 each 54-inch flap gates from Ferguson Enterprises at $8,378.22 was approved on a motion made by Councilman Weisbach , and seconded by Councilman Deshotel. Questions Ayes: All Nayes: None -000- Resolution 85=248 authorizing execution of an agreement with the. State Department of Highways and Public Transportation for the purchase and installation of passenger amenitites in the amount of $156,573.00 was approved on a motion made by Councilman Moore and seconded by Councilman Deshotel. Question: Ayes: All Nayes: None -000- Ordinance No. 85-84 authorizing the issuance of $15,700.000 City of Beaumont . Street and Drainage Improvements Bonds (General Obligation Bonds) was considered: ORDINANCE NO. 85-84 ENTITLED AN ORDINANCE AUTHORIZING ISSUANCE OF BONDS. Mr. Ildebrando told Council ".We have reviewed the bids. They are all calculated properly and they do all abide by the bidding restrictions which we have established. The successful bidder or the apparent successful bidder on the bonds is the First City National Bank of Houston . . . the interest rate from 1986 through . 1990 are 9%; '91 and '92 are 7 3/4; '93 is 8%; '94 and '95 are 8 1/4. Again the total interest cost was $8,111,812.50 for an average rate of 8.2583." -181- August 13, 1985 Y Ordinance No. 85-84 was approved on a motion made by Councilman Brumley and seconded by Councilman Turner. Question: Ayes: Councilman Deshotel Abstained: Mayor Neild Councilman Turner Councilman Weisbach Councilman Brumley Councilman Samuel Councilman Moore -000- Ordinance No. 85-85 authorizing the issuance of $4,750,000 City of Beaumont Water System, Sanitary Landfill and Golf Course Certificates of Obligation was considered: ORDINANCE NO. 85-85 ENTITLED AN ORDINANCE AUTHORIZING ISSUANCE OF CERTIFICATES. Mr. Ildebrando told Council "The bids for the Certificates were also calculated properly and do abide by the bidding restrictions which we have established. The . apparent high bidder again being Goldman, Sachs & Company, New York . They bid a $41.25 premium so they will actually pay us $4,750,041.25. The interest rates bid were 9 3/4y from 1987 through 1995; 9.4% in 1996; 8 1/2% in 1997; 8 3/4 in '98; 9% in '99, 2000 & 2001; and 7 3/4% in 2002 through 2005. The total interest cost less the premium is $4,161,583.75 for an average effective rate of 8.8752. The ordinance was approved on a motion made by Councilman Turner and seconded by Councilman Brumley. Question: Ayes: All Nayes: None -000- Resolution 85-249 setting August 27, 1985, at 1:15 p.m. as the date for a public hearing on the budget was approved on a motion was made by Councilman Weisbach and seconded by Councilman Deshotel. Question: Ayes: All Nayes: None -000- The City Council session was . briefly recessed to move the remainder of the meeting to the Julie Rogers Theatre. The session was reconvened for presentation of the City Manager's proposed 1985-86 Budget and for comments from citizens. City Manager.Nollenberger presented the proposed 1985-86 budget: -182- August 13, 1985 Operating Fund Revenues: General Fund, $42,986,840; Revenue Sharing, $1,687,000; Water Utilities, $13,893,700; Sanitation, $3,280,440; Landfill, $1,895,700; Transit, $1,375,700; Debt Service, $8,395,020; Fleet, $3,917,700; Insurance, $5,990,500; Central Stores, $204,390; Less Transfers of $14,232,710; Total Operating budget at $69,394,280 plus Capital Improvements, $2,862,118; Total All Funds $72,256,398. COUNCILMAN SAMUEL: Upon receiving the budget and looking at the budget, I have found several ways, some alternatives to the employee layoffs. I ask that a resolution be placed on the agenda; however, I will withdraw that until September 17th, which is the last week . prior to the budget adoption. With this resolution, I have pointed out in the General Fund we are anticipating 85 employees that could be laid off and that would equate $2,027,195 - that includes the salaries and benefits of those 85 individuals. I found this can be absorbed in a 12-month period by freezing the present 22 vacant positions that we have which would be $552,000 and a 5 percent decrease in salaries for 12 months which would equate to $976,000 and possibly taking $499,000 from the Revenue Sharing which would eliminate the possiblity of those 85 employees losing their positions. Now, with this transition for the 12-month period, these employees could be phased into other positions that come available within the City or through work with the JPTA Program or Project Start they can secure employment outside of the City. Also, in the Sanitation Fund, it's $576,000 which equates to 23 employees laid off. By . . . rather than going from $11.06 production to $7.95, I am proposing that we maintain the present level of service which is two days per week pickup in garbage and one per month in pickup of trash. That would eliminate having to lay the 23 employees off in the Sanitation Department. At the same time, in this proposal we could reduce the Sanitation fee from $11.06 down to $9.50 without any reduction of personnel. The third alternative would be in the Water Fund, which 23 positions were anticipated to be lost which would equate to $508,000. The fund balance that we have going into the '86 budget could absorb those individuals for a 12-month period and again allowing the opportunity to phase into the vacant positions as well as securing employment outside. The same is with the Insurance Fund where there were two employees that would be effected there. That fund balance could absorb those positions and in the Fleet Fund, which is one position and that could be absorbed in the balance going over. The reason that I pulled this off after going through the budget and talking with some of the other Council members, we found a number of ways that we might be able to decrease the impact on our employees and possibly eliminating the option of employee layoffs. I will be presenting this on the 17th as the worst case scenario and I just wanted the City employees to know that there is a way and I will be working toward that end. I do have one other concern and that is a concern . . . I don't know if this is the proper time to add to it, but I do have a concern about the procedure and the criteria that was used in determining who would be laid off. So, the message that I do have to the employees - those who received letters, we are looking at every possible alternative to eliminate that and we will be evaluating the excess employees that we have in the City and that might not possibly be the ones that got the letters. -183- August 13, 1985 COUNCILMAN MOORE: Basically to add on to Councilman Samuel's proposal, we had some discussion with reference to it and we had some of the same major concerns, some of those concerns being primarily criteria used for people who received letters. Of course, we have already requested that information, procedures used from one department to the next. One of the other major concerns that we had and I hope .this need not even come to fruition, the fact that we are very concerned about families; two family members who work for the City, both being laid off and I certainly couldn't support that. We are hopeful that through the cuts and basically going through the budget, this is the reason why we said last week it would be a little premature to make any decisions until we've seen the budget and examine it to see where cuts can be made. And, back in March, along with other Councilmembers, I went on record saying that if there was going to be any reduction, all reductions would be on a very equitable basis and would start at the very top all the way down to the very bottom . . . staff has worked extremely hard in trying to put together these numbers that would keep people from losing their jobs and also I would like to remind the citizens that are here tonight that this Council took the position back in March stating that in view of the loss, we did not want anyone to lose their jobs, we did not want to reduce any of the services, we did not want to reduce anybody's salary to get through the year 1985. So, we've done that. We are looking at 1986 now. We are looking at all the options. We will look at this budget critically so, and in terms of Councilman Samuel, I still feel very strongly about the fact that we can maintain our level of services and City employees. Councilman Turner suggested revising budget workshop discussions to August 17, 10, 17 and September 3 and 5; Council concurred. COUNCILMAN DESHOTEL: I would like to speak along the lines as far as it effects the possible layoffs . if necessary and my concerns. I was quite distressed with some of the information that I received and the only reason I bring this out publicly, is is true and as sad as it may be, I just want . . . and I have the faith in the staff that this will be corrected otherwise. I know how some of the Council feels and I can understand the need to go through the channels that employees should go to their immediate supervisors and so on up through the ladder before it gets to the Manager before it gets to the Council. And, these situations that I may relate to now, unless I felt that they are absolutely true I would not relate them. But, to give you an example - the people who received letters in the jiealth Department. Two of the people are expectant mothers who, if they are terminated, will not have any type of insurance and would be unable to receive insurance and will be an insurance burden as far as the City is concerned. One of the persons in that Department who received a letter has three children, one with Scoliosis, one with Diabetes, and one with severe Asthma and she is a single parent who has been and will continue to be if she remains a drain on the insurance of the City. -184- August 13, 1985 COUNCILMAN DESHOTEL continued: There are five other single mothers who have no other income but the City who have school age children. And, another sad situation out there, there's a 62- year old lady who works as a janitor and has been with the City quite some time and has some medical background information in her folder which says that she should not work outside. So . . . she has been working inside of the department doing a fine job - the same day that her supervisor receives a discharge letter, she was called in by the Supervisor above that and told now you are going to have :to go back outside regardless of what your letter says or go back and get new letters from your doctor. When this was brought to the attention of the Department head, the reaction was, "Well, she's sassy. She talks back to us. She needs to learn not to do that. Well, those should not be criteria from cutting people from the City payroll. I think we should look at the need of that position. If we have to make a cut, do we need a person doing this job, not whether that person talks back or that person doesn't get along with the supervisor. I think it is going to be encumbered upon Council, those that feel that way, to review any potential layoffs and slots, because as it is presented now, there have been a number of . stories related to me and I believe them because they are coming from several sources where these types of things about a person's personality or they think they are this or they think they are that and not what they are going to do without a job. That type of attitude cannot continue in this City because we have no "sacred cow" at City Hall. Everybody is subject to be terminated or subject to a payroll cut as far as I am concerned. This should be equally distributed throughout the administration and that's all I have to say. -000- Mr. Pat L. Killebrew, 4285 Park, addressed Council to speak in opposition to proposed cuts in personnel and to urge the resignation of the City Manager. Gene Darst, 585 Iowa; Mrs.Nancy Verzone, 2151 Orange; Mrs. Olivia Gonzales, 975 Avenue E; Mrs. Jo Elliott, 9330 shepherd, the Reverend Jay Boyd Davis, 4410 Ironton; Lindsey Walker, 8125 Evangeline; Anthony Pursello, 3580 Port Arthur Road #409; Mrs.Marie Hubbard, 1990 Nora; Wayne Sherman, 325 Bradford; Herman Davis, 790. Amarillo; Dan Kohlhofer, 855 Howell; Roberto Flores, 2425 Buchanan; Mrs. Terry. Horn, 655 S. 23rd #16; Mrs. Wanda Neyland, 9510 Shepherd and John Perez, Houston and the international representative of Employees in the Public Sector, addressed Council to speak in opposition to personnel cuts, in support of the Police and Fire Departments, to urge citizen input into the budget process during workshops and other budget-related matters. -000- There being no further business, the meeting was adjourned. -000 -185 August 13, 1985 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 August 13, 1985. Myrtle Corgey City Clerk -186- August 13, 1985