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HomeMy WebLinkAboutMIN MAR 21 1995 REGULAR SESSION CITY COUNCIL- CITY OF BEAUMONT HELD MARCH 21, 1995 - 1:30 P.M. BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in regular session this the 21 st day of March, 1995, with the following present: HONORABLE: David W. Moore Mayor John K. Davis Mayor Pro Tem Councilman,Ward III Andrew P. Cokinos Councilman-At-Large Becky Ames Councilman-At-Large Lulu L. Smith Councilman,Ward I Guy N. Goodson Councilman,Ward H Calvin Williams Councilman,Ward IV Ray A. Riley City Manager Lane Nichols City Attorney Barbara Liming Deputy City Clerk -000- The Invocation was given by the Reverend Sandy Sandlin, First Baptist Church. The Pledge of Allegiance was led by Mr. Ben Hansen, Editor of the Beaumont Enterprise. -000- The Reverend Sandlin present Council with tickets to First Baptist's annual Passion Plav to be presented April 13-15, 1995 and Mayor Moore invited citizen attendance at one of the performances. -000- 00 Proclamation was issued: "Doing Time for Kids Day," March 23, 1995 (a fundraiser for the Beaumont Police Activities League--PAL to benefit children and combat juvenile crime in the Tri-plex area). -000- Citizen comment was invited on the Consent Agenda and Main Agenda. No one wished to address these subjects. 72 The following Consent Agenda items were considered: Approval of the Minutes of the regular City Council session held March 7, 1995; Resolution No. 95-90 authorizing renewal of the Emergency Medical Services Contract with Jefferson County Emergency Services District No. 1 for a one-year period commencing April 1, 1995 and ending March 31, 1996 for payment in the amount of$4,027.50; Resolution No. 95-91 authorizing payment to Mr. and Mrs. Robert Rausch, displaced due to the improvements to West Lucas Drive from Phelan Boulevard to Delaware Street, in the amount of $4,202.00 and a fixed moving expense payment of$850.00 for a total not to exceed $5,050.00; Resolution No.95-92 authorizing settlement of the Claim of Donald Segura in the amount of$4,000.00; and Resolution No. 95-93 authorizing settlement of the Claim of L.E.Johnson in the amount of$8,450.00. The Consent Agenda was approved on a motion made by Councilman Cokinos and seconded by Councilman Smith. Question: Ayes: All Nayes: None -000- Resolution No. 95-94 authorizing execution of a one (1) year contract with the Southeast Texas Development Corporation, Inc. in the amount of $398,000.00 ($359,000 to fund acquisition and renovation for up to ten(10)homes, $39,000 for the estimated annual administrative budget) to continue the Housing Acquisition/Renovation Program,using funds from the 1994 HOME Grant was approved on a motion made by Councilman Smith and seconded by Councilman Goodson. Question: Ayes: All Nayes: None -000- Resolution No. 95-95 authorizing a contract with Excavators and Constructors, Inc. in the amount of$5,541,628.00 for construction of the Liberty-Laurel Phase H Project designed to improve access from the west end of the City to the downtown area and improve drainage from the High School Ditch Drainage Project was approved on a motion made by Councilman Cokinos and seconded by Councilman Ames. Question: Ayes: All Nayes: None -000- Resolution No. 95-96 authorizing the publication of notice of intention to issue $6,000,000 in 73 Certificates of Obligation with proceeds to be used for the Liberty-Laurel Phase H and III projects was considered. Mr. Riley explained that Item 3 is a continuation of the Capital Improvements Program to fund the Liberty-Laurel project, said bonds are not issued in advance in order not to have idle funds on hand, said that Mr. Frank Ildebrando of Rauscher Pierce Refsnes, Inc. will serve as financial advisor and Mr. John Creighton of Orgain, Bell& Tucker will serve as bond council. Councilman Cokinos asked for a total amount of outstanding Certificates of Obligation, asked if the outstanding amount is considerable and what are the limits and saturation level. The City Manager replied that Certificates of Obligation are the same as General Obligation Bonds and the total debt requirement, including principle and interest, is about $121 million with about $70 million in principle--$10 million in Certificates, the remainder being General Obligation Bonds. Mr. Riley said the City's outstanding amount is not excessive and the limits are about 30% of our total assessed valuation of the community, and we're probably at a third of what we're authorized to issue. He reported that Beaumont's current debt service is right at $10.1 million and is being satisfied through the issuance of about 31.5 cents of our General Obligation debt. Mr. Riley said he anticipates over the next five years a three to five cent maximum increase and does not anticipate anything higher because of declining debt that will begin to occur in about the year 2005. Councilman Smith asked if the three cents would cover the whole authorized $10 million and Mr. Riley said that an additional two cents would be needed for the full $10 million. Mayor Pro Tem Davis asked that "when the City issues the $6 million in Certificates of Obligation, what is the role and the job of the financial advisor and the bond counsel?" Mr. Riley said the bond council must certify and assure that all requirements of the law are met in regard to the City and anybody purchasing bonds, and the bond advisor actually prepares the necessary documents. Mayor Pro Tem Davis inquired as to the length of service of Orgain, Bell& Tucker as bond counsel, and Mr. Riley said they have served at least fifteen years. Mayor Pro Tem Davis said he has no problem with Orgain, Bell& Tucker, but asked if it is possible for another firm to join in some capacity with them. The City Manager said not as financial counsel, and that most communities have a long-standing relationship with their bond counsel because only certain firms have the knowledge or ability to do this work and are better served by retaining the bond counsel that is aware of individual city's product. Mayor Pro Tem Davis said his "question is, is it possible in some capacity for another firm to join in with Orgain, Bell& Tucker as our bond counsel in some capacity?" 74 The City Manager said in his opinion, they could not, but Council could consult with the City Attorney who serves in the capacity as legal advisor. He added that probably there is no prohibition, but another firm probably could not bring anything to the table to participate in the fee received by the bond counsel. City Attorney Lane Nichols said the bond counsel could utilize the assistance of another lawyer to do some of the functions such as researching City Council Minutes or formulating questionnaires. He stated that anytime work is done by the hour, someone could be hired to do a portion of the work. However, he said the size of this job and the number of hours involved wouldn't lend itself to too much subdivision between firms, and the people who are retained would have to have some expertise in this area. In order to be acceptable to the investment community, he said the firm has to be in a recognized bond counsel book because their opinion that these are tax-free obligations of the City and the State of Texas is crucial to the sale and interest rate the City would receive. Mr. Nichols said it is possible to hire or use another firm for some of the hours, but it wouldn't be significant. Mayor Pro Tem Davis said "the reason that I, I brought this issue is because I think it is somewhat important for me that we try to, if we can, have an opportunity to get minority law firms involved, and this would seem to be one of the good opportunities, if they fit all those criteria and they meet the qualifications, and that was why I was asking. I have talked to some law firms about Certificates of Obligations, and they're not necessarily not going to be interested in this, but it is also a way that we can bring more people involved into this process, and that is my point. I think, if we can in some kind of capacity, as we've done with our CPA's, bring on a MBE so that we can make sure that all share in some of the benefit." City Attorney Nichols said this is an excellent idea, told Council that if those kinds of requests are forwarded to him, he will get with Mr. Creighton to determine if a fit and mix can be found. Resolution No. 95-96 was approved on a motion made by made by Councilman Ames and seconded by Mayor Pro Tem Davis. Question: Ayes: All Nayes: None -000- Mr. Tony Jones, 508 Garland, addressed Council to ask that financing for widening of Old Dowlen Road be considered because of the construction of a new Super Walmart in the near future, asked that Council consider extended bus service to'the new Super Walmart when it opens, said he saw Mayor Moore on C- Span television while he was attending the National League of Cities meeting in Washington, D.C. and was impressed with the Mayor. reminded Council that the transfer point downtown needs to be named after Henry Dannenbaum and said there is a bill before the Human Resources Committee in Austin to strengthen guide-dog laws in the State of Texas and increase fines for violators. Mayor Moore told Mr. Jones that many of the issues he raised are presently being worked on. Mr. Glen Hunt, 7375 Willis Lane, addressed Council to complain about an oil-drilling operation 75 (Anadarko Petroleum Corp. of Houston)in northwest Beaumont that upsets nearby residents. Mr. Hunt requested that Council consider taking all steps necessary to control and regulate urbanized oil drilling, production and storage facilities by adding to ordinance regulations a greater minimum distance between their operations and inhabited structures, restriction of operating hours, noise regulations that effectively control all noise from the site, regulate fumes and emissions and excessive vibrations due to, but not limited to, hydro-testing. Mr. Hunt distributed copies of a survey of 45 households for Council to review and said that for the past three months, this has been a 24-hour, seven-day-a-week, 70 plus decibel, oil- spewing monster in his neighborhood. Mrs. Pearl Hebert, 7785 Easley Drive, a recent heart attack victim, substantiated Mr. Hunt's complaints, said she used to live in a quiet neighborhood, but now the noise is terrible, the fumes awful and she has been awakened with shaking caused by testing and requested Council assistance. Mr. James Hebert, 7785 Easley Drive, supported the complaints about the oil-drilling operation and added that he thinks the stress caused by all these activities contributed to his wife experiencing a heart attack. Ms. Mable Daigle, 7825 Easley Drive,resident of a mobile home park next to the oil-drilling site, said she is representing other residents of the mobile home park that could not attend Council, as well as herself, said the drilling activities are a health hazard to children and the elderly and asked that Council enact regulations that will keep these activities from happening to residential neighborhoods. Ms. Schieketha Eaglin, 3220 Christopher, addressed Council in support of the citizens complaining about oil-drilling operations and paralleled their complaint to the problems caused by seismographic testing in her neighborhood. -000- Councilman Goodson said it is good to be back in Beaumont after a visit to West Texas last week. Councilman Smith reported that the National League of Cities meeting held last week was probably the most interesting and the most frustrating she has attended during the past eight years. She said she was disappointed in both political parties and that she does not feel Congress is willing to make the changes and sacrifices that need to be made. In speeches from the President and the Speaker of the House, she did not hear much about deficit reduction, saw a lot of posturing from both sides of the House that was very disconcerting. Councilman Smith said the cut in the school lunch program is actually .2% of the increase in the program. She said they are not cutting the program, but cutting the increase. Instead of increasing it each year by 4.6% for the next five years, they will increase the program 4.4% each year. She said "there's not much truth in what anyone says around there." She said she thinks cities will "not come out of this very well," that funding will probably go to the State through Block Grant and she doesn't know how we will fare there. To her, this says "we're going to have to learn how to solve our problems on a local level with a partnership between the public and private sectors." Councilman Smith 76 said she thought the most interesting and informative sessions were those in which Senator Kerry of Nebraska and Senator Gregg from New Hampshire spoke about entitlements, the deficit and where we're going if we do not get a "handle on our entitlement spending." She said they were more honest and real in approaching what needs to be done. She said she didn't come away with a feeling that an awful lot was going to be done to help the deficit. Mayor Pro Tem Davis said he also attended the National League of Cities meetings in Washington, D.C. for the first time, and it was definitely inspiring. He said he was disappointed in the level of discussion, or the lack of substantive discussion, about issues. He said it was interesting that each political party can look at the same issue, approach it in a different perspective and then see no common ground whatsoever and that is disappointing. He said that in the future cities will be confronted with problems not experienced before; he thinks unfunded mandate action is a plus, but saw no other real pluses from that meeting. Councilman Ames remarked that this also was her first attendance at a National League of Cities meeting, said it was a rude awakening and very different, but she learned a tremendous amount and now understands why these meetings are important. She said she learned a lot about city, state and federal government and how it comes together. Councilman Ames agrees with Councilman Smith's remarks, but came back as an optimist because it was so exciting to be there and be a part of the grassroots level decision making. Also, Councilman Ames congratulated the Beaumont Regional Medical Center for the groundbreaking of its new Professional Tower this morning. She said it will be a wonderful facility that all citizens can be proud of, a lot of good things will be created for our community by its construction, said the developer reported that Beaumont Regional said all Beaumont contractors and sub-contractors will be used in constructing the structure. Mayor Moore confirmed that the groundbreaking at Beaumont Regional was exciting and began his comments by complimenting all members of Council who maintained busy schedules while four members were in Washington D.C. and thanked them for keeping appointments and activities. Also, he thanked those who went to the National League of Cities meeting, attended new member orientations and various workshops that began early in the day and lasted late into the evening. He said there was a lot of discussion to hear on both sides of issues to discern the real truth, and as a community there will be a number of things to work together on to be successful. Mayor Moore said probably the brightest point of all discussion was about the lunch program where they learned that the program is not being cut in its entirety, only increases are being cut. He said that Council was able to hear discussions and meet with the President, Speaker of the House, the Interior Parks Director Sam Hall, Senator Kay Bailey Hutchinson, Senator Phil Gram, and Congressman Steve Stockman with all the same questions and the conversation being similar in some respects and totally different in others, but said cities will not be able to do business as usual in handling grants, and now is the time for public and private partnerships to be put together. He said he is invited to the White House tomorrow, but will not be attending, for signing of the unfunded mandates bill. He said many things are not addressed that we already have to handle and said the City Manager spoke very well to that in a recent newspaper article. He said the federal government is trying to pass the burden to local governments to force a balanced budget by making sure 77 that local spending does not exceed revenues, said they are telling us now that there are a number of things we will not receive in the future and others we will have to maintain. He said a lot of activity is going on with record numbers of bills being proposed and passed in Congress, then sent to the Senate for review. He said this equates to a lot of eye-opening, particularly for those who attended the NLC meetings, but said it was an extremely productive meeting in terms of information. -000- There being no other business,the regular session of City Council was recessed to reconvene in workshop session. -000- I, Barbara Liming,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 March 21, 1995. Barbara Liming Deputy City Clerk 78