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MIN SEP 17 1985 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD SEPTEMBER 17, 1985 - 1:15 P.M. BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in regular session this the 17th day of September, 1985, with the following present: HONORABLE: William E. Neild Mayor • Joseph D. Deshotel Councilman At Large G. Wayne Turner Councilman At Large • Mike Brumley Councilman, Ward II Audwin Samuel Councilman, Ward III David W. Moore Councilman, Ward IV Absent: Nell Pruitt Weisbach Councilman, Ward I Karl Nollenberger City Manager Hugh Earnest Asst. City Manager Lane Nichols City Attorney (*Arrived during the reading of the proclamations. ) -000- The Invocation was given by Dr. Hooper Haygood, pastor of First United Methodist Church. The Pledge of Allegiance was led by Mayor Neild. -000- Four proclamations were issued: "Beaumont State Center Family Day in Beaumont" - September 21, 1985; "Constitution Week in Beaumont" - September 17-23, 1985; "National Arts Week in Beaumont" - September 23-29,1985 and "Join the Today PTA Week in Beaumont" - September 15-21 , 1985. -000- The following Consent Agenda items were considered: Approval of the Minutes of the regular City Council session held September 10, 1985; Resolution 85-295 approving the pledge of $2,500,000 by InterFirst Bank, Beaumont; the pledge of $2,000,000 by Texas Commerce Bank, Beaumont; the pledge of $2,500,000 by Allied Bank of Beaumont; the pledge of $4,000,000 million by First City Bank, Beaumont; the pledge of $500,000 and the release of $500,000 by Parkdale Bank; Resolution 85-296 authorizing payment of $3,027.06 to Jefferson County for costs incurred in the August 10th Special Election; -209- September 17, 1985 Resolution 85-297 authorizing acquisition of Parcel No. 190, a 12,419 ,square foot tract out of the David Brown League for the M. L. King, Jr. Parkway/Spur 380 Project, Phase III right-of-way, from Marie Lloyd in the amount of $49,500; and Resolution 85-298 authorizing payment for a MT-653 transmission for Garbage Truck Unit No. 6085, a 1982 Ford cab/chassis side loader, from Airtronics Remanufacturing Division, Inc. at $1,195.00. The Consent Agenda was approved on a motion made by Councilman Turner and seconded by Councilman Moore. Question: Ayes: All Nayes: None -000- Public Comment was heard on Agenda items 3 through 11 : Mrs. Marie Hubbard, 1990 Nora, addressed Council on Item 11 and expressed her opposition to proposed budget cuts in personnel. -000 A public hearing was called to consider issuance of $1.4 million of Housing Revenue Bonds for the Beaumont Retirement Hotel: CITY MANAGER NOLLENBERGER: The first item on the agenda today is a public hearing relating to Housing Bonds for the Beaumont Retirement Hotel. Back in September of 1984, the Beaumont Industrial Development Commission originally approved an Inducement Resolution for the issuance of these bonds which would rehabilitate and purchase the Beaumont Retirement Hotel located over on Orleans Street. On August 20, 1985, the Beaumont Multi-Family Housing Finance Corporation approved the transfer of that Inducement Resolution from the Industrial Development Corporation to the Multiple Family Housing Finance Corporation for the $1,400,000 worth of bonds. The rules of the Texas Economic Development Commission and the Federal Tax Law require that the City Council hold a public hearing and authorize the issuance of those bonds. The bonds will not be the obligation of the City of Beaumont but will be supported only from the revenues that are derived from the project itself so that there is no tax support or no general support by the City government. After the public hearing, the resolution should be considered by the City Council. MAYOR NEILD: All right. At this time I will call a public hearing on the issuance of Housing Revenue Bonds for the Beaumont Retirement Hotel. If there is anyone here that would like to speak in favor of that, they may come to the podium at this time. -210- September 17, 1985 MR. SCOTT SHELDON: Thank you Mayor, I am Scott Sheldon from the law firm of Sheldon and King. I've been working on the project since September 11, 1954 and just wanted to say as Mr. Nollenberger mentioned the request is for $1,400,000 in Tax Exempt Housing Revenue Bonds for purposes of acquiring the tract of land, constructing the project and rehabilitating the existing Beaumont Hotel. This is one of four projects that the Urban Group has taken on, all of which will be financed simultaneously with the closing, assuming that we are able to get a favorable resolution from your Council and from the Beaumont Multi-Family Housing Finance Corporation for issuance of these bonds, for a total package of $10,000,000 which will include projects similar to the Beaumont Hotel located in Santa Barbara, California; North Platt, Nebraska; and Lubbock, Texas. I have with me Bill Hoops. He's an attorney with Butler Benyon in Houston, which is acting as bond counsel for both the Lubbock and the Beaumont projects and Beth Lazenby from my firm who has been assisting me on this project. During the past week, I have suet with Lane Nichols concerning the contents of the documents which we asking the Beaumont Multi-Family Housing Finance Corporation to approve and have discussed it with various members of the Council and am just here to answer any questions that you may have concerning the documents. As Mr. Nollenberger mentioned, they are not obligations of the City. Security Pacific National Bank in California is issuing a $10.0 :pillion letter of credit to guarantee payment of the bonds and also so that the Urban Group can obtain the highest rating on the bonds when they are offered publicly. The bonds as of right now looks like five or six lending institutions will be purchasing them and the closing, if everything goes as scheduled, is tentatively set for next Tuesday and Wednesday, the 24th and 25th, in Los Angeles. Does anybody have anybody have any questions about the documents for the project? MAYOR NEILD: Does anyone have any comments or questions of Mr. Sheldon? MR. SHELDON: Thank you very much. MAYOR NEILD: Thank you, Scott. Anyone else like to address the public hearing on the issuance of these certificates? There not being anyone else, I would say before we take a vote, I had the pleasure of cutting the ribbon over there last week and saw . . I began to see some of the things that the Urban Group had begun to start and the promises that Mr. Parsons had made this Council and I was very pleased with the attitude of the residents and the new sparkling area of the people moving around and being active so it is a very, very good project it appears. Is there any other question or comment? If not, is there a mo ti on? Resolution 85-299 authorizing issuance of $1,400,000 of Housing Revenue Bonds for the Beaumont Retirement Hotel was approved on a motion made by Councilman Moore and seconded by Councilman Turner. Question: Ayes: All Nayes: None -211- September 17, 1985 Ordinance No. 85-91 abandoning the south two feet of a 20-foot utility easement on property at 2224 Liberty described as Lot 24, Block 2, Averill Addition,. (requested by Larry W. Crocker, Service Title Company to clear title) was considered: ORDINANCE NO. 85-91 ENTITLED AN ORDINANCE ABANDONING THE SOUTH TWO FEET OF A TWENTY FOOr UTILITY EASEMENT ON PROPERTY LOCATED AT 2224 LIBERTY, LOT 24, BLOCK 2, AVERILL ADDI- TION, BEAUMONT, .JEFFERSON COUNTY, 'TEXAS. The ordinance was approved on a motion made by Councilman Deshotel and seconded by Councilman Samuel. Question: Ayes: All Nayes: None -000- Resolution 85-300 approving the revised administrative budget for the Neighborhood Housing Services Program in the amount of $30,000 was approved on a motion made by Councilman Moore and seconded by Councilman Deshotel. Question: Ayes: All Nayes: None -000- Resolution 85-301 suspending the rate increase request of Entex for a period of 90 days (approximately January 13, 1986) and setting a public hearing for November 12, 1935 was approved on a motion made by Councilman Turner and seconded by Councilman Deshotel. Question: Ayes: All Nayes: None -000- Resolution 85-302 authorizing execution of all the necessary documents for settlement of the case styled Lamar Bank, et al vs. City of Beaumont, No. E- 111,414, bank stock cases, and refund of $681,220.98 to the various banks involved in the suits (of the $2,445,212.98 paid to the City by the banks, City will retain $1,763,992 or approximately 72% plus all accrued interest) was approved on a motion made by Councilman Turner and seconded by Councilman Deshotel. Question: Ayes: All :Nayes: None Councilman Brumley questioned the $61.0 million bank stock value remaining on the 1984 Tax Rolls without proper footnoting. -000- A resolution appointing an Advisory Committee for implementation of a Sister City Program was deferred. -212- September 17, 1935 Resolution 85-303 approving a 50-year lease contract with the Young Men's Business League for Fair Park terminating on December 31, 2036 was approved on a motion made by Councilman Brumley and seconded by Councilman Deshotel. Question: Ayes: All Nayes: None -000- Resolution 85-304 approving the amendments to the Minority Business Professional Services policies was approved on a motion made by Councilman Moore and seconded by Councilman Samuel. Question: Ayes: All Nayes: None Amendment No. 1 : For the purpose of improving the chance of entrepreneurship of minority persons in professional areas, the City of Beaumont will allow, a minority person to be employed by a non-minority and still be utilized as a minority professional service. All rights of sub-contracting will be observed between such a union as long as the following regulations are observed: a. A bona fide contract is drawn up and signed, sub-contracting a portion of the work to the MBE, b. The percentage amount and dollar value is presented before the contract is awarded. Amendment No. 2: In the event a contract for professional services is leas than $25,000, and a qualified minority prime contractor is not available, the step involving sub-contracting between a majority business professional firm and a minority business professional firm, may be eliminated. A goal of at least 20 percent would be targeted for the involvement of Minority Business Enterprise in City contracts for contractual services over $25,000 per contract. -000- Resolution 85-305 authorizing purchase of seven (7) mobile two-way radios for use by the Police Department from United Communications, Inc. at $6,172.25 was approved on a motion made by Councilman Deshotel and seconded by Councilman Samuel. Question: Ayes: All Nayes: None -000- Resolution 85-306 authorizing purchase of belts and accessories (clip holders and handcuff cases) for use by the Police Department from Tyler Uniform Company at $3,264.24; Emergency & Safety Products of Pasadena at $7,289.69; Factory Sales of Houston at $2,210.69 and Martin's Uniforms of Houston at $2,362.50 (total - $15,126.52) was approved on a motion made by Councilman Brumley and seconded by Councilman Turner. Question: Ayes: All Nayes: None -000- Councilman Moore asked that attention be given to the cutting of weeds at and near the drainage ditch at Sprott Park by both the City and Drainage District 6. -213- September 17, 1985 Councilman Moore expressed his concern for City employees that would be effected by layoffs and said that a Job Task Force group made up of members. of the Chamber of Commerce, City Council and interested citizens would be formed to help place these employees. Mayor Neild told Council that "a memo crossed my desk that the Beaumont Animal Shelter has received an inspection by the Department of Health and they received a very, very high rating in connection with the Shelter and the condition and that was commended for being one of the better shelters they had visited within the State and I do want to commend the personnel and staff that work in a very difficult task for receiving such a high rating from the Texas Department of Health. " Councilman Turner suggested that a letter, signed by either the Mayor or City Manager, be sent to Sheriff Dick Culbertson indicating the City of Beaumont's desire of consolidating the County Jail and the City Jail. Council agreed with this suggestion. -000- Mayor Neild called an Executive Session, pursuant to Section II of the Texas Open Meetings Act, to consider litigation and personnel to be held immediately following the City Council Workshop Session. -000- Mrs. Marie Hubbard, 1990 Nora, addressed Council to speak in opposition to the efforts to recall Mayor Neild and Councilman Turner. -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 September 17, 1985. Rosemarie Chiappetta Deputy City Clerk -214- September 17, 1985