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HomeMy WebLinkAboutMIN DEC 20 1983 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD DECEMBER 20, 1983 BE IT REMEMBERED that the City Council of the City of Beaumont , Texas, met in regular session this the 20th day of December, 1983, with the following present : jHONORABLE : William E. Neild Mayor Bill Cox Councilman , Ward I Evelyn M. Lord Councilman, Ward II Joseph D. Deshotel Councilman, Ward III David W'. Moore Councilman, WArd IV Karl Nollenberger City Manager Kenneth Wall City Attorney Hugh Earnest Asst . City Manager Myrtle Corgey City Clerk -000- The Invocation was given by Pastor Bob Arnold, Touch Christian Center. The Pledge of Allegiance was led by Mayor Neild. -000- Mayor Neild recognized the following citizens for their past service on City Advisory Boards and Commissions: Dr. Brock Brentlinger, retiring chairman of the Beaumont Library Commission; Mr. Paul Brown, Beaumont Housing Finance Corporation and Beaumont Housing Authority; Mr. Howard Close, Parks & Recreation Advisory Committee; Mr. John Conway, Parks and Recreation Advisory Committee; Mr. Doug Echols, Planning & Zoning Commis- sion; Mr. Sid Hardeman, Parks and Recreation Advisory Committee; Mr. Curtis Linton, Planning Commission; Maury Meyers, Beaumont Housing Corporation and the Clean Community Commission ; Gordy Nesom, Senior Citizens Advisory Commission; W. W. "Bill" Phillips, Beaumont Multi-Family Housing Finance Corporation and Reinvestment Zone Board of Directors; Al Pollans, Transit Advisory Committee; Chester Sassine, Transit Advisory Committee, Mrs. Georgia Smith, Historical Landmark Commission; David Strah, Transit Advisory Commission ; Mrs. Thelma Warren, Beaumont Landmark Commission; Tommie Warren, Planning Commission, past chairman; Dr . Ralph Wooster, Historical Landmark Commission. (Messrs. Brown and Echols were present . ) These citizens will be presented with. a pen bearing the Seal of the City of Beaumont on one end and names inscribed on the barrels when received ,from the manufacturers. -000= The following Consent Agenda items were considered: Approval of the Minutes of the regular City Council session held December 13, 1983 ; Resolution 83-464 accepting the work as complete and authorizing final pay- ment to the contractor for the demolition and removal of a structure at 1450 Burt Street to A. C. Clark in the amount of $1 , 000. 00; Resolution 83-465 authorizing purchase of a plant intercom/paging system for the Water Reclamation Division from J. V. Davis and Company of Dallas in the amount of $3 , 005. 76; and Resolution 83-466 accepting sanitary sewer improvements in Fannin 2nd Addi- tion for City Maintenance (Lots 1-8, Block 1 , on the north side of Fannin Street between 4th and 8th) . The Consent Agenda was approved on a motion made by Councilman Deshotel and seconded by Councilman Lord. Question : Ayes : All Nayes : None -208- December 20, 1983 Public Hearingto consider approval of issuance of industrial development revenue bonds for the Kyle Plaza Project was held. MAYOR NEILD: Now we have a public hearing in connection with the approval of the issu- ance of Industrial Development Revenue Bonds for the Kyle Plaza Project . CITY MANAGER NOLLENBERGER: Your Honor, on this particular one, Bruce Rick, who is the lead developer on that project , is held up in Austin. He had planned on being here but hasn' t been able to make it here yet and he asked Norman Whitaker, who is one of our Chief Pla-ners, to take his place to describe the outline of the project . NORMAN WHITAKER: The Kyle Plaza Project will be a mixed use project consisting of three major parts. First , restoration of the Kyle Building to provide 28,000 square feet of retail space; secondly, construction of a 360 space parking garage be- hind the Kyle Building; and third, construction of approximately 160,000 square feet of Class A Office Space on top of the parking garage. The pro- ject costs will be $20,050, 000. 00. This can be broken down into $5,000,000 Urban Development Action Grant which the City will receive from the federal government and then loan to the developers as a second mortgage. $10,000,000, the financing will be from Industrial Revenue Bonds and the remaining $5, 050, 000 will be the developers equity. MAYOR NEILD: Is that it? I think there may be some questions; however, I know there' s been a lot od discussion at one time or another. Does any of the Council have any questions before opening up the public hearing? Thank you, Norman . At this time, we will open up the public hearing for anyone who'd like to comment in connection with the Kyle Plaza Project . Those who would like to speak for or against the project , please come to the podium and give us your name and address and we will be glad to hear from you. There being no one to appear either for or against , then I will declare the public hearing closed. -000- Resolution 83-467 authorizing and approving the issuance of $10,000,000 in Industrial Development Revenue Bonds for the Kyle Plaza Project was approved on a motion made by Councilman Cox and seconded by Councilman Lord. Question : Ayes : All Nayes : None -000- Public Hearing on the Expansion of Neighborhood Housing Services Boundaries. MAYOR NEILD: The next item has to do with a public hearing on the expansion of the Neighborhood Housing Services Boundaries. CITY MANAGER NOLLENBERGER: Your Honor, on this item, No. 2 on the Agenda, Sherell Cockrell, who is a planner with our Community Development Block Grant Programs, would outline this particular issue to the City Council . Sherell . . . . . . -209- December 20, 1983 SHERELL COCKRELL: The Neighborhood Housing Services is a private, locally-controlled non-pro- fit corporation. The non-profit corporation was established here in Beau- mont in September of 1981 . The Neighborhood Housing Service program is basically composed of community residences, financial institutions, and the local government working together to assist in revitalizing the neigh- borhood. The Neighborhood Housing Services here in Beaumont was allocated $100, 000. 00 of Community Development Block Grant funds from the 1981 budget . The funds were to be used to support establishing a revolving loan fund for rehabilitation loans to thus applicants who were not able to meet commer- cial loans. The Neighborhood Housing Service Board of Directors, the Chair- man of that Board of Directors, and their Executive Board Director for the program is requesting to expand the neighborhood. The expanded area for the neighborhood would include portions of Census Tracts 24 and 25. It would be bounded on the north by Washington Boulevard, on the south by Florida Avenue and extend all the way over to the Southern Pacific Railroad. Originally, their request was to expand it over to Avenue A based on the population characteristics and the housing units that we had gathered from our 1980 census data and our 1977 landuse survey, we have requested and discussed with them that it be expanded all the way over to the Southern Pacific Rail- road as opposed to just going toward Avenue A. The original site is located in Census Tract 26. There are a total of 2, 147 single family units located in the proposed or expanded area and there is a total of 2, 518 housing units totally. Now, of that 2, 518, we have broken down the characteristics of those according to the conditions which those units were in in our 1977 landuse survey. Based on that rating, No. 1 was rated those units that were practically new or are new; No. 2 as far as condition rating were for the units that only simply needed minor improvements such as paint ; for those units that are rated 3, those units needed to have minor repairs such as rehabilitation work. Those units that are 4 have major structural damage and those units that are rated 5 should be demolished. They are in such poor condition, it wouldn' t be feasible to rehabilitate. Based on that criteria and that information, there are approximately 1 ,742 units in the proposed area that would be feasible for rehabilitation. And, of that 1 ,742 units , 1 , 571 are single family units and 171 of those units are multi-family structures. Now, the request would allow . . . or the approval of the request will allow the NHS program to continue to use .the Community Development Block Grant funds that they have received for the revolving loans and to be able to use those funds in the expanded area. And, they have come to us request- ing to expand into the area and wanting to be able to use the $100,000 that they have in the expanded area or the balance of that . MAYOR NEILD : Does anyone have any questions in connection . . . ? Sherell , how much money of the original $100, 000. 00 have they used? . . . roughly? MS. COCKRELL: I think they used roughly $11 , 000. 00 based on entrants that was a lump sum drawdown agreement , so I think we have as of September 30th . . . we have about $94 , 000. 00 left . MAYOR NEILD : And they do have a new director at this time? MS . COCKRELL: They do have a new director at this time. He came on-board in September of ' 83 . He hasn' t been with us that long. MAYOR NEILD : This is a joing venture so to speak with the local lending institutions. Aren ' t there some other funds that are being committed? -210- December 20, 1983 MS . COCKRELL: Yes, the City has allocated $30, 000. 00 to assist in the administration costs of the program. The local lending institutions have committed the balance of the operating costs for the program. The $30, 000. 00 that the City allocated will be used strictly. for one salaried position which is an administrative aid, but the director 's salary is basically paid out of sup- port from the financial institutions. 'MAYOR NEILD : Are there any other questions? ED SIGEE : Yes, Mr . Mayor. MAYOR NEILD: Ed, I don ' t know whether I can let you speak to this right now; maybe at the open forum? MR. SIGEE : All right . All right . COUNCILMAN DAVID MOORE: One question , Sherell . MAYOR NEILD: Oh, we ' ll have a public hearing in just a minute, then you can speak. Ex- cuse me . . . . . . COUNCILMAN MOORE : Who is the director? MS. COCKRELL: Paul Davis is the new director and he is here. MAYOR NEILD: All right . Why don ' t we go ahead and move into the public hearing and then Mr . Sigee may speak at that time. Si there anything else, Karl? CITY MANAGER NOLLENBERGER: No. MAYOR NEILD : At this time, I would like to call a public hearing in connection with the expansion of the Neighborhood Housing Services. Anyone who cares to address the Council in connection with that , may do so by coming to the podium and giving us your name and address. Now, Mr. Sigee . . . . . . -211- December 20, 1983 MR. ED SIGEE : Mr. Mayor, thank you , sir. I am not against expanding; but I 've always been curious. We advanced them $100, 000. 00 and that ' s been quite a while. They appeared before the Block Grant Committee for some more money recently. Now, my question is this, do anyone know why they haven 't used this money the way we though that they would? That ' s the only question I have, as to what has been the holdup in that neighborhood. I 've been out there and I know what the condition is. It seems like they are not applying for the funds. And I don ' t understand that . MAYOR NEILD: So that some of you may know, Mr. Sigee sits on the Community Block Grant Committee which is where the original $100, 000. 00 committment came and they 've had an interest in certainly other projects needing funds and which I understand, Sherell , you might correct me, that the City several years ago made a verbal or the Block Grant Committee made a committment to fund additional funds if the demand was there. And, I don' t know who may want to address that . Maybe you or maybe the director can? CITY MANAGER NOLLENBERGER: Sherell , would you feel comfortable answering that or would you like to have Mr . Davis respond to it . MS. COCKRELL: I would like to make only one comment then I would also like to let Mr . Davis speak. Since the program has been in existence, we have had two executive directors and there has been quite a turnover within the last two years since we were operating the program and each time that individual has had to begin all over again trying to continue to sell the program that has been a turnover in the Board of Directors for that corporation itself and I think each individual has a little different concept of what the overall ,program was about . The City has been providing guidance and service to them in assisting to provide a rehabilitation specialist for them since they did not have a rehabilitation specialist on board and it has been . . . it takes a long time to get a housing rehabilitation program established and I think that has been one of their problems. Mr. Davis may have other comments that he' d like to make. MAYOR NEILD : One of the things that I 've found interesting, Mr. Davis, you may come forward if you want to make a comment , is the times, T',ve been out there there have been more self-help type projects that they've done. It certainly has stimu- lated some painting and fixing up but it ' s been neighbor helping neighbor more than anything else. Mr. Davis, would you come forward? MR. PAUL DAVIS : Ladies and Gentlemen : May I speak without using . . . thank you . My voice is better the other way. I am a newcomer to a program that has had problems. I bring quite a bit of experience in other NHSs and about 30 or 35 years in private experience as a realtor/contractor, doing business in a very simi- lar way. These NHS programs are not infallible. The method of operation is not a true science. There are many ways that NHSs function. There are about 185 of them in our Country, some very successful , some not too successful ; none of them have ever closed. None of them are complete failures and all of them work a little bit differently then the others. If I dwell too much or too much in depth upon what has occurred in the past , I must speak with quite a degree of ignorance because I wasn ' t here. i do know there were some errors made, reasonable errors. At least there were efforts made long, hard working efforts. You might fall back on the old saying, the only person who doesn 't make mistakes is the one who never does anything. They've tried hard. They have had a fairly good degree of success considering their pro- blems. They' ve worked . . . they' ve attempted to work with a two-man office, _717_ Dpnp.mher 20 . 1983 MR. DAVIS continued: sometimes a non-man office. NHSs will not function with less than three people efficiently. They have tried to function and operate an NHS with no employees and they' ve done very well . They have spent some of the CDBG money. They have also spent most of their NRC money which was the seed money from the parent corporation covering the organization. I can ' t tell you all the whys of why they didn ' t doo more but I know that they' ve made six (6) families very happy. I know that they have at the moment four (4) more families who wish their services, two of which are living in', the area we wish to move into. We have some other programs we wish to instigate and try and this expansion or request for expansion fits what we wish to do. Have I said enough? MAYOR NEILD: You said you are going to keep trying. MR. DAVIS: We are going to keep trying. MAYOR NEILD: Thank you. Is there anyone else who would like to make a comment on expan- sion of the Neighborhood Housing Services? COUNCILMAN LORD : I have a question for Sherell . I guess, Sherell , you know that I spent six (6) years as an Executive Director of an NHS myself and I often wondered and ask you now is one of the reasons you want to expand is perhaps to have more territory into which you can spread this kind of help because so often because we are talking about loans that are repaid that you have a very 'restricted number of people that can still avail themselves of those ser- vices even though they are made more freely than they could get them through a lending institution . Do you think when you open this up that you are go- ing to have that demand on your services that you have not had in the past? Is this what you are hoping to do? MS . COCKRELL: That ' s what we are hoping and I think so. I think perhaps from the very beginning we selected too small of a neighborhood or restricted ourselves to too small of an area. COUNCILMAN LORD : I know the ones we worked with before were city wide and so I can see this would be a real problem to have such a restricted area when you are loaning money. If you are giving it away, you would have no problem. COUNCILMAN MOORE : I have a question, Sherell . Have we had any rejections people seeking the funds for improvements? MS . COCKRELL : Basically, the way the program was established, they were supposed to be able to refer a client to the lending institutions first and based on three rejections by a lending institution , they would be eligible if they were on a fixed income to be available for the Community Development Block Grant funds and I think that in fact has happened, that did occur even with the previous administrators that they' ve had under the program so they've actually -213- December 20 , 1983 MS. COCKRELL continued: made four loans under the C.D. program and I believe three under the NCR program. The NCR program allows them to have a lot more flexibility than use of the Community Development Block Grant funds and I think perhaps that is the cause of the restriction upon the program to a certain extent. I think that they need more flexibility but , just the same, I think there are those people out there that would benefit from the use of the Community Development Block Grant funds in the expanded area. COUNCILMAN MOORE: Thank you. MAYOR NEILD: Joe . . . ? COUNCILMAN DESHOTEL: Sherell , Mr. Davis mentioned that it would take three people to . . . should take three people to operate this. Is that within the $30,000.00 budget? Are you all going to be able to fund three salaries for administrative costs or will it pour over into the . . . . . . ? MS. COCKRELL: The $30, 000. 00 is only a portion of their total operation costs for their entire budget . If I remember correctly, I think their budget is something like $76, 000. 00 a year. We were proposing to only fund for one position and provide services of allowing our rehabilitation specialist from the Community Development Block Grant program to assist them until they are able to hire a fulltime rehabilitation specialist for the program. COUNCILMAN DESHOTEL: But none of the $100, 000. 00 will go toward administration? MS. COCKRELL: No, the $100, 000. 00 is strictly for the revolving loan fund and the agree- ment between the City and the Neighborhood Housing Services Program was based on their need. Each year, the Community Development Block Grant Citi- zens Advisory Committee would consider allocating another $100, 000. 00 if it was needed for the revolving loan fund itself . COUNCILMAN MOORE: One other question . What steps have we taken, what steps have the Neighbor- hood Housing Service taken to make it known to the people in the community that funds are available? MS. COCKRELL: Well , in the very beginning, they did hold neighborhood meetings, public hearings, within the local neighborhood. I am aware that they published a newsletter. They sent out flyers to the residences. They did door-to- door requests and they put forth a lot of effort . I think the point was that we really narrowed ourselves down . . . narrowed ourselves into a cor- ner, per se, because of the types of funds that we have. If you are going to make a loan to a low or moderate income person and in particular the majority of residents in the existing neighborhood is on fixed income but they are retired individuals that do not own they aren 't requiring any additional payments on their homes, they aren't interested in making loans from a lending institution to require that they need additional payments. They zen ' t even interested in seeking the City' s help because that would be an additional payment . They are on fixed income and I think it ' s the economic _C31 n n-- Im 9n IQQQ MS . COCKRELL continued: condition of the time for one thing that slowed the program down to a cer- tain extent . I think that perhaps with the new area, we will reach a lar- ger variety of people that would be interested in the loan. It ' s a low interest loan , the use of the community development block grant funds - the interest on that I think their program was still on a sliding scale and I believe, unless Mr. Davis has changed it at this point , it is still on a sliding scale, as low as 2 percent . MR. DAVIS : As low as 0 percent . MS . COCKRELL: As low as 0 percent then. MAYOR NEILD: All right . Is there anyone else that would like to address the Council in connection with the expansion of the Housing Service area? If not , I will declare the public hearing closed. -000- Resolution 83-468 authorizing expansion of the Neighborhood Housing Ser- vices boundaries to include an area bounded by Washington Boulevard on the north , Florida Street on the south, the Southern Pacific Railroad on the west and Highland Avenue on the east was approved on a motion made by Councilman Moore and seconded by Councilman Deshotel . Question : Ayes : All Nayes : None --000- Resolution 83-469 cancelling the contract between the City of Beaumont and' the Beaumont Emergency Medical Services Corporation , effective January 1 , 1984, was approved on a motion made by Councilman Cox and seconded by Coun- cilman Lord. Question : Ayes : All Nayes : None -000- Resolution 83-470 suspending for 90 days the effective date of the proposed rate increase of Entex, Inc. , and setting a public hearing to be held at 1 : 15 p.m. , January 17, 1984, was approved on a motion made by Councilman Lord and seconded by Councilman Deshotel . Question : Ayes : All Nayes : None -000- Resolution 83-471 authorizing the City of Beaumont to enter into an agreement with the State Department of Highways and Public Transportation for a Selec- tive Traffic Enforcement Program (STEP) grant in the amount of $130, 000. 00 to subsidize the cost of overtime paid to Beaumont Police Department Officers working in the Department ' s Accident Control Team (ACT) was approved on a motion made by Councilman Deshotel and seconded by Councilman Moore. Question : Ayes : All Nayes : None -000- Resolution 83-472 authorizing extension of water and sewer utilities to pro- perty located 1 , 365 feet east of Fannett Road on the south side of Frint Drive (requested by Crabtree Construction Company) was approved on a motion made by Councilman Deshotel and seconded by Councilman Cox. Question : Ayes : All Nayes : None -000- -215- December 20, 1983 Resoluiton 83-473 authorizing execution of a 6-month contract with Radcliff Materials, Inc. for purchase of approximately 4 , 000 tons of oyster shell at $13. 50 per ton was approved on a motion made by Councilman Lord and se- conded by Councilman Deshotel . Question : Ayes : All Nayes: None -000- Resolution 83-474 authorizing a one-year lease/purchase of a Series III , 'Model 60 copier from IBM of Beaumont at $1 , 163 . 00 per month with additional charge of $. 0096 per copy was approved on a motion made by Councilman Lord` and seconded by Councilman Cox. Question : Ayes : Mayor Neild Abstained : Councilman Moore Councilman Cox Councilman Lord Councilman Deshotel -000- An ordinance revising the project plan and adopting a financing plan for the City of Beaumont Reinvestment Zone No. l was deferred for action fol- lowing the City Council Workshop Session today. -000- Resolution 83-475 authorizing street light improvements on Fannett Road from 4th Street to approximately 350 feet southwest of Ethel (GSU estimated cost of $41 , 172. 83 for the installation of concrete bases, poles and street lights) was approved on a motion made by Councilman Moore and seconded by Councilman Deshotel . Question : Ayes : All Nayes: None -000- Resolution 83-476 adopting the Affirmative Action for a 5-year period was considered. Councilman Moore questioned whether the Advisory Committee to monitor pro- gress and compile quarterly reports for City Council should be mentioned in the resolution itself . City Manager Nollenberger told Council that the citizen review committee is more involved in the implementation stage of the program but it isn't necessarily a goal but that the resolution could be clarified to include mention of the Advisory Committee. It was agreed that this would be done. The resolution as amended to include mention of the Advisory Committee was approved on a motion made by Councilman Deshotel and seconded by Councilman Moore. Question : Ayes : All Nayes : None -000 Resolution 83-477 approving the retention of Kohler and Kohler, Engineers and Surveyors', to conduct special drainage studies related to the flood insurance study done for the City of Beaumont by the Federal Emergency Agency in an amount not to exceed $10, 000. 00 was approved on a motion made by Councilman Lord and seconded by Councilman Cox. Question : Ayes : All Nayes : None -000- Councilman Moore spoke to the great deal of concern in his Ward for the drainage situation and said, "at this particular time, I 'd like for all those individuals that have contacted me to understand that the proper channels have been contacted and they have been making the one-on-one interviews with the different constituents . . ." and further commended Mr. Joe Ternus and the Urban Transportation Department . -216- December 20, 1983 Councilman Lord wished all "a very joyous and very blessed Christmas" . -000- Mr. Robert Preston, 1190 Iowa, addressed Council to complain about the City Municipal Court and Legal Department operations. Mr. Bill Gould, 7050 Donna Lane, again addressed Council to request per- mission to burn leaves on his property in Woodland Acres Addition. Mr. J. C. Leggett , 1849 Washington Boulevard, addressed Council to express .his concern for the 500 Block of College, Park to Neches, and the number of businesses in this Block. -000- There being no further business, the meeting was recessed before continu- ing with the City Council Workshop Session. -000- The regular City Council session was reconvened to consider an item that was deferred. Councilman Deshotel left during Workshop and did not return. Ordinance No. 83-176 revising the project plan and adopting a financing plan for the City of Beaumont Reinvestment Zone No. 1 was considered: ORDINANCE No. 83-176 ENTITLED AN ORDINANCE APPROVING THE FINANCING PLAN FOR REINVESTMENT ZONE NUMBER ONE, CITY OF BEAUMONT, TEXAS; AND PROVIDING FOR SEVERABILITY. The ordinance was approved on a motion made by Councilman Cox and seconded by Councilman Lord. Question : Ayes: All Nayes : None -000- There being no further business, the meeting was adjourned. -000- 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 December 20, 1983 . Myrtle Corgey City Clerk -217- December 20, 1983