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MIN MAR 03 1992 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD MARCH 3, 1992 - 1:30 P.M. BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in regular session this the 3rd day of March, 1992 , with the following present: HONORABLE: Evelyn M. Lord Mayor Lulu L. Smith Mayor Pro Tem Councilman, Ward I Andrew P. Cokinos Councilman At Large Brian R. Alter Councilman At Large Guy N. Goodson Councilman, Ward II Audwin Samuel Councilman, Ward III David W. Moore Councilman, Ward IV Ray A. Riley City Manager Lane Nichols City Attorney Rosemarie Chiappetta City Clerk -000- The Invocation was given by Dr. Sandy Sandlin, pastor of First Baptist Church. The Pledge of Allegiance was led by the Reverend David Robinson, pastor of Douglas Memorial Christian Methodist Episcopal Church. -000- One Proclamation was issued: "Mental Retardation Month, " March, 1992 . -000- Dr. Sandy Sandlin, pastor of First Baptist Church, distributed to Council, City Staff and members of the audience brochures stating, "How sweet it is to have people like you who enhance the governing process in our community. " The brochures are a public expression of appreciation from the pastor and congregation of First Baptist for governmental leadership in Beaumont and part of their "To Beaumont with Love" endeavor. Dr. Sandlin said that during the next six weeks personal contacts will be made to over 7, 000 leaders who use their time and expertise to enhance our community, and the grand finale of this appreciation effort will be a presentation by his congregation of the Passion Play at the Julie Rogers Theatre on April 11 and 12 . Dr. Sandlin said that often Council sacrifice for service is taken for granted. He said his congregation is taking this opportunity to say -57- March 3, 1992 thank-you and will attempt to support Council in the future by being informed citizens and prayer partners to make Beaumont all it can be. -000- Citizen comment was invited on the Consent Agenda and Main Agenda Items 2 through 7 . No one wished to address these items. -000- The following Consent Agenda items were considered: Approval of the Minutes of the regular City Council session held February 25, 1992 ; Resolution No. 92-64 accepting donation of four drainage easements, totaling 1.763 acres, across property in the W. Dyches League, Abstract, Abstract 17 and J. S. Marble Survey, Abstract 465, from John H. Walker, Richard L. Guseman, Margaret Cole, Linda Guseman, Gail Guseman Barber and the Estate of Lawrence Guseman, Jr. , deceased, to facilitate the maintenance of four drainage ditches between Suburban Acres Addition and Park North Addition; Resolution No. 92-65 authorizing proceedings in Eminent Domain, due to failure to negotiate an agreement with owners, Donald L. Shackelford and Derold L. Shackelford (appraised value at $1, 350. 00) to acquire an easement needed for the Meentzen Drainage Project with Drainage District #6, a 30-by-387 .9-foot tract representing the north one-half of the Meentzen Road right-of-way adjacent to Lot 136 of the Meentzen Brothers Subdivision; Resolution No. 92-66 authorizing a contract in the amount of $20, 675. 00 with Joe Simon Plumbing and Heating of Beaumont for furnishing and installing a liquefied petroleum gas (LPG) piping system for the Fire Training Center; and Resolution No. 92-67 authorizing a contract with American Industrial Painters of Beaumont in the amount of $15,960. 00 for painting, sandblasting and priming six vessels used in training exercises at the Fire Training Grounds. The Consent Agenda was approved on a motion made by Councilman Cokinos and seconded by Councilman Goodson. Question: Ayes: All Nayes: None -000- Bids on the sale of $13 . 3 million in public improvement bonds were received. -58- March 3 , 1992 Mr. Frank Ildebrando, financial advisor from Rauscher Pierce and Refsnes, Inc. , opened and read the following bids: Bank One Securities, Dallas, Texas: Total Interest Cost - $10,967, 002 . 08 Effective Interest Rate - 6. 63690 Clayton Brown & Associates, Inc. , Chicago, Illinois: Total Interest Cost - $10, 957,767 .71 Effective Interest Rate - 6. 6313% Rauscher Pierce Refsnes, Inc. , Dallas, Texas: Total Interest Cost - $10, 805,976. 04 Effective Interest Rate - 6. 5394% NationsBanc Capital Markets, Inc. , Dallas, Texas: Total Interest Cost - $10, 816, 389 .25 Effective Interest Rate - 6. 5458% First Southwest Co. , Dallas, Texas: Total Interest Cost - $10, 853 , 461. 38 Effective Interest Rate - 6.5682% These bids were taken to the Treasurer's office to verify calculations before a recommendation by Mr. Ildebrando for consideration of sale to be acted upon by Council later in the meeting. -000- Ordinance No. 92-22 authorizing issuance and sale of $20 million in waterworks and sanitary sewer system revenue bonds to the State Revolving Fund at an interest rate of 5.5%, pursuant to approval of the City's application by the Texas Water Development Board, with proceeds from the sale to be used to finance sewer system improvements to comply with permit requirements for the sewage treatment plant (development of an estimated $14 million Phase 1 wetlands project and contracts for improvements to the plant's electrical system, replacement of a computer control system, construction of a pump station and pipeline to take plant' s effluent to the artificial wetlands) was considered: ORDINANCE NO. 92-22 ORDINANCE AUTHORIZING THE ISSUANCE OF THE CITY OF BEAUMONT, TEXAS, WATERWORKS AND SEWER SYSTEM JUNIOR LIEN REVENUE BONDS, SERIES 1992 ; AND CONTAINING OTHER MATTERS RELATED THERETO -59- March 3 , 1992 Ordinance No. 92-22 was approved on a motion made by Councilman Alter and seconded by Mayor Pro Tem Smith. Question: Ayes: All Nayes: None -000- Resolution No. 92-68 authorizing the Police Department to participate in a task force of area law enforcement agencies and, under the Texas Narcotics Control Program, seek 75% grant financing for a $384 ,707. 08 Beaumont Police Department Task Force Project (adding five officers to the department for organization of teams specializing in enforcement against youth crime in the areas of narcotics and gang violence, a clerk- typist, overtime provisions, and other incurred costs such as clothing allowance and supplies) for the program year June 1, 1992 , through May 31, 1993 , was approved on a motion made by Councilman Cokinos and seconded by Councilman Alter. Question: Ayes: All Nayes: None -000- Resolution No. 92-69 authorizing filing an application for an Urban Park and Recreation Recovery (UPARR) grant for 1992, in the total amount of $142 , 857 . 00 to finance an "At-Risk-Youth" Recreation Program (multi- sport counselling program) for youth in depressed inner city neighborhoods, authorize the City Manager to act as the official representative of the City and certify local matching funds in the amount of $28,571. 00 to be available for a period of two years beginning from date of receipt of said grant for purposes of guaranteeing the local "in-kind" component of the grant, was approved on a motion made by Councilman Alter and seconded by Councilman Moore. Question: Ayes: All Nayes: None -000- Resolution No. 92-70 authorizing conveyance of Lots One through Twelve (1-12) , Block Fifty-Five (55) , of the North Addition (a gift of land accepted from Kenneth E. Ruddy on January 28, 1992) to the Innovative Housing Development Corporation for construction of homes for low-to- moderate income families was approved on a motion made by Councilman Cokinos and seconded by Councilman Alter. Question: Ayes: All Nayes: None -000- Resolution No. 92-71 authorizing purchase of four (4) John Deere Model 2355 GP tractors from Eastex Farm and Home of Beaumont in the amount of $56,448. 00 for use by the Parks and Recreation Department was approved on a motion made by Councilman Cokinos and seconded by Councilman Moore. Question: Ayes: All Nayes: None -60- March 3, 1992 Further consideration of the Main Agenda was deferred to allow staff, the City's financial advisor and bond counsel additional time to confirm calculation of bids for sale of $13 . 3 million in public improvement bonds. -000- Councilman Cokinos reported that an excellent program (a care giving workshop and a "Who am I?" series) was presented at Saint Andrew's Presbyterian Church last Friday by the Reverend Kathie Bender and was well attended and well received. Councilman Alter commented that the Convention and Visitor's Bureau attempts to keep Beaumont in the tourist's and public eye as much as possible and called attention to the unique card they sent out commemorating Texas Independence Day. He said they try to emphasize lesser known holidays and read the inscription at the bottom card: "This card is respectfully dedicated to those Texans who fought for freedom during the battles of Goliad, the Alamo, and San Jacinto. " Councilman Moore conveyed thanks from the South Park Neighborhood Association to Council for their support and appreciation to Staff for their time in helping the group. He said that a number of organizations have come forward with assistance and contributions. Mayor Lord announced there will be not be a regular City Council meeting next Tuesday because of the National League of Cities ' meeting in Washington, D. C. -000- Ms. Ruth Nugent, 510 Azalea Lane, Vidor, addressed Council to extend an invitation to attend an afternoon of boating safety education and awareness at the Beaumont Yacht Club on Saturday, March 14 from 1:00 p.m. until 6: 00 p.m. followed by a St. Patrick's Day party at 6: 00 p.m. Mr. Henry Rowe, 5825 Garner Road, addressed Council regarding a home he sold to a first-time home buyer who received funding assistance through the Innovative Housing Development Corporation. Mr. Rowe said the buyer lived only eight months after purchasing the house and asked for assistance in reclaiming the property because he cannot foreclose on the deceased buyer. Mayor Lord recommended that Mr. Rowe meet with Assistant City Manager Sterling Pruitt for direction in reconciliation of the situation. Mr. Paul Prejean, 5720 Kohler, congratulated and complemented Council for their leadership efforts against gang crime in Beaumont. The Reverend M. Timothy Hunley, 1698 LaSalle, addressed Council to express appreciation for the improvements to Magnolia Park, suggested -61- March 3, 1992 s that fieldhouses be erected in parks for after school activities, asked that thought be given to a special program for adolescent girls, and commended the street rehabilitation program. Councilman Moore informed the Reverend Hunley that the Housing Authority, through the use of their community centers, is working in conjunction with the City in organized recreation programs. Citizen comment was interrupted to continue with the Regular Agenda. -000- City Treasurer Kandy Daniel reported that she read and verified all bids received for the sale of $13 . 3 million in public improvement bonds, and they all proved to be correct as previously read by Mr. Ildebrando. Based on the verification of the bid calculations and specification requirements, Mr. Ildebrando announced that the firm of Rauscher Pierce Refsnes, Inc. is the successful bidder and read the interest rates for each maturity: 1993 - 2002 -- 7.75% 2003 -- 6.25% 2004 -- 6. 30% 2005 -- 6. 40% 2006 -- 6. 40% 2007 -- 6. 45% 2008 -- 6. 375% 2009 -- 6.25% 2010 -- 6. 25% Mr. Ildebrando confirmed the total interest cost to be $10,805, 976. 04 and the effective interest rate to be 6. 539498%. He said the bids were competitive and fair and felt the favorable bid was influenced by the City's bond rating increased at Moody's from a B A A to an A rating, the bonds going to market with an A A A rating and insurance from FGIC (Federal Guarantee Insurance Corporation) . Ordinance No. 92-23 authorizing the sale of $13 . 3 million in public improvement bonds to Rauscher Pierce and Refsnes, Inc. was considered: ORDINANCE NO. 92-23 ORDINANCE AUTHORIZING THE ISSUANCE OF $13 , 300, 000 THE CITY OF BEAUMONT, TEXAS, PUBLIC IMPROVEMENT BONDS, SERIES 1992 ; AND CONTAINING OTHER MATTERS RELATED THERETO Ordinance No. 92-23 was approved on a motion made by Councilman Cokinos and seconded by Mayor Pro Tem Smith. Question: Ayes: All Nayes: None -62- March 3, 1992 Mrs. Delia Harrington, 815 Willow Street, thanked Council for taking care of the tree problem on the Delia Harrington Welcome to Beaumont Park. Mrs. Marilyn Adams, 4695 Dellwood, as a board member for the Innovative Housing Development Corporation, addressed Council in appreciation of the conveyance of the twelve (12) lots for construction of low-to- moderate income homes, the donation to the City, and said that she has always been appreciative and complimentary of the Housing Services staff, but wanted Council to know that right now, the staff in that department is probably working better than ever before. The Reverend David L. Robinson, pastor of Douglas Memorial Christian Methodist Episcopal Church, 1370 Ewing, addressed Council to solicit support of a summer youth program for children of working parents formulated by he and a group of concerned citizens. The Reverend Robinson said the program provides structured, quality education, nutritional meals, recreational and cultural activities and will operate from June 1 through August 31, 1992, providing funding is made available. Mr. Henry Dannenbaum, 1567 Wall Street, addressed Council in support of action taken today for the Beaumont Police Department Task Force Project under the Texas Narcotics Control Program. -000- There being no other business, the Regular Session of City Council was adjourned. -000- I, Rosemarie Chiappetta, 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 3 , 1992 . Rosemarie Chiappetta City Clerk -63- March 3, 1992