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Home My WebLink AboutMIN SEP 15 2009 M I N U T E S - CITY OF BEAUMONT W.L. Pate, Jr., At-Large BECKY AMES, MAYOR Gethrel Wright, Mayor Pro Tern Dr. Alan B. Coleman, Ward I CITY COUNCIL MEETING Nancy Beaulieu, Ward II Audwin Samuel, Ward III September 15, 2009 Jamie Smith,Ward IV Tyrone E. Cooper, City Attorney Kyle Hayes, City Manager Tina Broussard, City Clerk The City Council of the City of Beaumont, Texas, met in a regular session on September 15,2009, at the Beaumont Civic Center, 701 Main Street, Beaumont, Texas, at 1 :30 p.m. to consider the following: OPENING Invocation Pledge of Allegiance Roll Call Presentations and Recognition Public Comment: Persons may speak on scheduled agenda items 1-2/Consent Agenda Consent Agenda Mayor Ames called the council meeting to order at 1:30 p.m. Associate Staff Minister, Katherine Briggs of Antioch Baptist Church gave the invocation. Councilmember Beaulieu led the Pledge of Allegiance. Roll call was made by Tina Broussard, City Clerk. Present at the meeting were Mayor Ames, Mayor Pro Tern Wright, Councilmembers Coleman, Beaulieu, Pate, Samuel and Smith. Absent: Kyle Hayes, City Manager. Also present were Tyrone Cooper, City Attorney; Tina Broussard, City Clerk. Proclamations, Presentations, Recognitions None Public Comment: Persons may speak on scheduled agenda items 1-2/Consent Agenda. None CONSENT AGENDA Approval of minutes - September 8, 2009 Confirmation of committee appointments - Resolution 09 - 270 Suzanne Alexander would be appointed to the Small Business Revolving Loan Fund Board. The term would commence September 15, 2009 and expire September 14, 2011. (Councilmember Alan B. Coleman) Minutes-September 15,2009 Beverly Hatcher would be reappointed to the Martin Luther King, Jr. Parkway Commission. The current term would expire December 4, 2010. (Councilmember W. L. Pate, Jr.) A) Authorize the City Manager to execute all documents necessary to accept funding for the Community Preparedness Section- Public Health Emergency Response(PHER) Grant for the Beaumont Public Health Department - Resolution 09 - 271 B) Authorize the acquisition of property for the Downtown Event Center and Park-Resolution 09 - 272 C) Approve Change Order No. 3 related to the City Hall First Floor Renovations Project - Resolution 09 - 273 D) Authorize the settlement of the lawsuit styled Fannette Entertainment. Inc.v.City of Beaumont, Texas, et al - Resolution 09 - 274 Councilmember Pate made a motion to approve the Consent Agenda. Mayor Pro Tern Wright seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, PATE, SAMUEL AND SMITH NAYS: NONE MOTION PASSED GENERAL BUSINESS 1 . Consider adopting an ordinance granting a public utility franchise to Centerpoint Energy Texas Gas Operations to operate a gas utility within the City of Beaumont. Second Reading Administration recommended approval of an ordinance granting a public utility franchise to Centerpoint Energy Texas Gas Operations to operate a gas utility within the City of Beaumont. The Charter of the City of Beaumont gives to the City Council authority to grant and renew franchises of all public utilities operating within the City of Beaumont. Ordinance No. 88-64 granted to Entex a 20-year franchise to operate a gas utility in the City of Beaumont. That franchise expired in June of 2008. Since that time City representatives have been negotiating with Centerpoint Energy Texas Gas Operations, successor in interest to Entex,for the renewal of a franchise to continue its operations in Beaumont. The proposed franchise provides for a term of operations for 25 years, providing for a payment by the Company to the City based upon four percent (4%) of the gross receipts from the sale of gas within the city limits and seven cents ($.07) per MCF for the transportation of gas to transportation customers within the corporate limits of the city for consumption within the city. The fees will be calculated for the calendar quarters ending March 31, June 30, September 30 and December 31 and shall be payable on or before the 15th day of May, August, November and February following the quarter for which payment is due. Page 2 of 8 Minutes-September 15,2009 I Ordinances granting franchises requires three(3) readings at separate regular meetings of the City Council and shall not be considered finally passed until the third reading which shall not be less than thirty(30)days from the first reading. The ordinance will not take effect until sixty (60) days after its adoption on the third and final reading. The first reading of this item took place at the August 25, 2009, council meeting. For the year 2008, the City of Beaumont received $795,900 in franchise fees from Centerpoint Energy. Year to date, the City has received $691,468 in franchise fees. Councilmember Beaulieu moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE GRANTING CENTERPOINT ENERGY RESOURCES CORP.,DBA CENTERPOINT ENERGY TEXAS GAS OPERATIONS, ITS SUCCESSORS AND ASSIGNS, THE RIGHTS, PRIVILEGE AND FRANCHISE FOR A PERIOD OF TWENTY-FIVE(25)YEARS TO CONSTRUCT,LAY,MAINTAIN,OPERATE,EXTEND,REMOVE,REPLACE AND REPAIR A SYSTEM OF PIPELINES, GAS MAINS, LATERALS AND ATTACHMENTS AND ALL DESIRABLE INSTRUMENTALITIES IN, UNDER,OVER,ACROSS AND ALONG ANY AND ALL STREETS, AVENUES, PARKWAYS, SQUARES, ALLEYS AND ALL OTHER PUBLIC PLACES IN THE CITY OF BEAUMONT,JEFFERSON COUNTY,TEXAS,FOR THE PURPOSE OF TRANSPORTING,DISTRIBUTING, SUPPLYING AND SELLING GAS (NATURAL AND/OR ARTIFICIAL AND/OR MIXED) FOR HEATING, LIGHTING, POWER, AND FOR ALL OTHER PURPOSES FOR WHICH GAS MAY BE USED, TO THE MUNICIPALITY OF SAID CITY OF BEAUMONT, TEXAS, AND ITS INHABITANTS AND OTHERS; PROVIDING CONDITIONS CONTROLLING THE USE OF PUBLIC THOROUGHFARES AND EXTENSIONS THEREIN; ESTABLISHING STANDARDS OF SERVICE; PROVIDING FOR PAYMENT OF FOUR PERCENT (4%) OF THE GROSS RECEIPTS FROM THE SALE OF GAS WITHIN THE CITY OF BEAUMONT AND SEVEN CENTS (7¢) PER MCF FOR THE TRANSPORTATION OF GAS TO TRANSPORTATION CUSTOMERS; PROVIDING FOR ACCEPTANCE; PROVIDING A SEVERABILITY CLAUSE; MAKING MISCELLANEOUS PROVISIONS; AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH. Councilmember Smith seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, PATE, SAMUEL AND SMITH NAYS: NONE MOTION PASSED Ordinance 09 - 047 2. Consider amending Resolution 09-193 authorizing the City Manager to apply for and receive additional Neighborhood Stabilization Program funds. Administration recommended approval. On June 30,2009,the City Council approved Resolution 09-193 authorizing the City Manager to apply for, represent the City and execute a contract for the Neighborhood Stabilization Program (NSP)in the amount of$900,000. This program is being administered by the Texas Department of Housing and Community Affairs (TDHCA). After review of the application, TDHCA has indicated that the grant amount will be $1,185,129, not the originally indicated Page 3 of 8 Minutes-September 15,2009 amount of$900,000. The resolution will allow the City Manager to receive additional funds above the estimated$1,185,129 if TDHCA notifies the City that additional funds are available. The NSP program requires no local match. Contracts for this program are expected within the next two weeks. The Neighborhood Stabilization Program (NSP)is a HUD-funded program authorized by the "Housing and Economic Recovery Act of 2008"(HERA), as a supplemental allocation to the Community Development Block Grant(CDBG) Program. The purpose of the program is to acquire and encourage redevelopment of foreclosed, abandoned and blighted properties in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. This program offers a variety of eligible activities, including demolition of properties, establishing land banks for foreclosed properties and the rehabilitation and selling of properties to provide affordable housing. Due to the limited amount of funding, the most advantageous use of the funds would be to identify approximately fifty (50) unsafe and abandoned structures within specific targeted areas and remove these blighted structures for approximately$121, 073. The balance of the funding could then be used to purchase and rehabilitate approximately nine (9) homes for approximately $1 ,004,800. The balance of funds, $59,256, would be used for the administrative costs associated with the program. The targeted areas are based on high concentrations of foreclosures and would include those neighborhoods near the Beaumont Housing Authority's Hope VI project and near Lamar University. Funds would be available through this grant, with no required local match. Mayor Pro Tern Wright made a motion to APPROVE A RESOLUTION THAT RESOLUTION NO. 09- 193 BE AND IT IS HEREBY AMENDED TO AUTHORIZE KYLE HAYES TO APPLY FOR, REPRESENT AND EXECUTE A CONTRACT IN AN AMOUNT UP TO $1,185,129 THROUGH THE NEIGHBORHOOD STABILIZATION PROGRAM,A REIMBURSEMENT PROGRAM PROVIDED BY THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS. Councilmember Beaulieu seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, PATE, SAMUEL AND SMITH NAYS: NONE MOTION PASSED Resolution 09 - 275 3. Public Hearing: Receive comments on a proposal to allocate funds($300,000)from the 2009 HOME Program for partial funding of affordable housing (Gracelake Townhomes) being proposed at 4060 West Cardinal Drive. Public Hearing Open: 1:52 p.m. Page 4 of 8 Minutes-September 15,2009 K.T. "Ike" Akbari 3735 Honeywood Ct. Port Arthur TX Asked that Council approve the allocation of the funds for the Gracelake Townhomes that is being proposed at 4060 West Cardinal Drive Public Hearing Close: 1:53 p.m. Consider authorizing an allocation of$300,000 from the 2009 HOME Program for the partial funding of affordable housing (Gracelake Townhomes) being proposed at 4060 West Cardinal Drive and authorizing the City Manager to issue a conditional letter of commitment for the allocation amount. Administration recommended approval. ITEX Property Management, LLC has been allocated$1,287,056 in Low Income Housing Tax Credits from the Texas Department of Housing and Community Affairs (TDHCA) for the construction of Gracelake Townhomes, a proposed 128-unit apartment complex that will provide affordable rental housing to low-to-moderate income families in an area targeted for revitalization. Gracelake will be located at 4060 West Cardinal Drive near the Jehovah Jireh subdivision currently under construction, and will supplement community revitalization efforts. The total cost of the proposed development is $13,772,368. This conditional commitment provides $2,343.75 per unit, representing 2.18% of the total development. An actual commitment of funds is contingent upon the development receiving the final allocation of tax credits, satisfactory Phase 1 Environmental Review and clearance from all other related environmental authorities, and compliance with applicable HOME Program regulations. In 2007,the City of Beaumont made a commitment of$1 ,367 per unit for the rehabilitation of Sunlight Manor, located at 2950 S. 8th St.,for which ITEX received an allocation of tax credits. Funds are available from the HOME Program. There is$1,191,559 available at this time from the 2008 ($459,671) and 2009 ($731,888) program years. Below is an outline of available funds in the 2008 and 2009 program years as well as current funding requests under consideration. 2008 HOME Program $459,671 Helbig CDC $109,946 (CHDO Reserve-new housing construction) Owner-Occupied Rehab Prg $300,000(proposed single-family rehabilitation program) Habitat For Humanity $ 49,725 (total request - $75,797) 2009 HOME Program $731,888 Habitat For Humanity $ 26,072 (to fund balance of request) Jehovah Jireh CDC $200,000 (CHDO Reserve-new housing construction) Gracelake Townhomes $300,000 (LITHC-construction of x128 unit apartment complex) 2009 HOME Funds Available Balance: $205,816 Page 5 of 8 Minutes-September 15 2009 Councilmember Smith made a motion to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO ALLOCATE $300,000 FROM THE 2008 HOME PROGRAM FOR THE CONSTRUCTION OF AFFORDABLE HOUSING LOCATED IN A NEIGHBORHOOD TARGETED FOR REVITALIZATION. Councilmember Beaulieu seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, PATE, SAMUEL AND SMITH NAYS: NONE MOTION PASSED Resolution 09 - 276 COUNCILMEMBER COMMENTS COUNCILMEMBER COLEMAN - WISHED HIS SON, CHRISTOPHER, A HAPPY 23R11 BIRTHDAY COUNCILMEMBER BEAULIEU - THANKED EVERYONE FOR BEING IN ATTENDANCE AT THE MEETING, WELCOMED MAYOR AMES BACK TO THE CITY MAYOR PRO TEM WRIGHT - NONE COUNCILMEMBER PATE - COMMENTED ON SEVERAL PROGRAMS FOR 9111 , ESPECIALLY AT FIRE STATION#1,COMPLIMENTED OFFICER RANDY STEVENS WHO DID AN EXCEPTIONAL JOB ON HIS PRESENTATION, ALSO FIREMAN CODY SCHRODER, RECEIVED THE STAR OF TEXAS AWARD, IN AUSTIN, TX COUNCILMEMBER SAMUEL - NONE COUNCILMEMBER SMITH - ANNOUNCED THE TYRRELL PARK NEIGHBORHOOD ASSOCIATION, WILL BE MEETING THURSDAY, SEPTEMBER 17, 2009 AT 6:30 P.M., AT THEODORE JOHNS LIBRARY, ALSO A HEALTH FAIR WILL BE SATURDAY,SEPTEMBER 19, 2009 AT MT.GILEAD BAPTIST CHURCH FROM 9:00 A.M.TO 2:00 P.M., REMEMBER TO TAKE A LOVED ONE TO THE DOCTOR, ACKNOWLEDGED MR. CHRISTOPHER THOMAS, WITH THE UNIVERSITY OF PHOENIX CITY ATTORNEY COOPER - NONE CITY MANAGER HAYES - NONE MAYOR AMES - GLAD TO BE BACK, GREAT DAY IN BEAUMONT Page 6 of 8 Minutes-September 15,2009 Public Comments (Persons are limited to three minutes) Frank Kiefer 3190 Willowood Beaumont TX Spoke on behalf of several citizens,who recommended the following:that the Chief Financial Officer reduce the Jefferson County Appraisal District's estimated appraisals to a maximum of 5%, that all employees receive a cost of living increase, that employees that do not live in Beaumont,that don't pay property taxes, not get an increase in salary because they don't pay into the operations of the City, implement a$2,000.00 cap on travel for all city employees and Councilmembers Bruce Hoffer 2615 Gladys Beaumont TX Commented on the scheduling of soccer for the entire area, invited everyone to come out and enjoy the next ten weeks of soccer at the Chris Quinn Complex Louis Vaughn 9615 Mapes Beaumont TX Spoke to Council regarding South Park Middle School and the conditions that exist in the building, which are safety, health and environmental Vernon Durden 2110 Westbury Rd. Beaumont TX Spoke to Council regarding a review committee for the City of Beaumont's Police Department, each Councilmember would appoint a person from each Ward as well as the Mayor and include the bargaining unit Ernest Charles 3162 Terrell St. Beaumont TX Addressed Council pertaining to City contracts that are awarded to contractors, having a problem understanding why local businesses, such as himself, are not able to get work from any of the projects that are going on,would like the City to assist him in understanding how the process works EXECUTIVE SESSION - CANCELLED Consider matters related to contemplated or pending litigation in accordance with Section 551 .071 of the Government Code: Fannette Entertainment, Inc., v. City of Beaumont, et al There being no Executive Session, Council adjourned at 2:08 p.m. Page 7 of 8 Minutes-September 15,2009 Audio available upon request in the City Clerk's Office. .. UMO \11 Bec Arnellayor LU ii77 / Tina Broussard, City Clerk i, �� ^ s Page 8 of 8 Minutes-September 15,2009