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Home My WebLink AboutMIN JUL 30 2013 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 Michael D.Getz,Ward II Audwin Samuel, Ward III July 30, 2013 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 July 30,2013, at the City Hall Council Chambers, 801 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 1-3/Consent Agenda Consent Agenda Mayor Ames called the council meeting to order at 1:30 p.m. Pastor Eddie McGriff of the House of Prayer Missionary Baptist Church gave the invocation. Mayor Ames led the Pledge of Allegiance. Roll call was made by Stephanie Gandy, Deputy City Clerk. Present at the meeting were Mayor Ames, Councilmembers Coleman, Getz, Pate and Smith. Absent: Mayor Pro Tern Wright, Councilmember Samuel and City Clerk, Tina Broussard. Also present were Kyle Hayes, City Manager; Tyrone Cooper, City Attorney; Stephanie Gandy, Deputy City Clerk. Mayor Pro Tern Wright and Councilmember Samuel were out of the city on city business. Proclamations, Presentations, Recognitions "Gift of Life" - Norma Sampson spoke about the initiatives and upcoming events Public Comment: Persons may speak on scheduled agenda items 1-7/Consent Agenda. None CONSENT AGENDA Approval of minutes - July 23, 2013 Confirmation of committee appointments - None A) Approve a resolution approving a contract for refurbishing and remounting an ambulance body — Resolution 13 — 156 Minutes-Date B) Approve a resolution authorizing the City Manager to enter into a lease agreement with Jefferson County for property located at 3455 Sarah Street — Resolution 13 — 157 Councilmember Coleman made a motion to approve the Consent Agenda. Councilmember Getz seconded the motion. AYES: MAYOR AMES, COUNCILMEMBERS COLEMAN, GETZ, PATE AND SMITH NAYS: NONE MOTION PASSED GENERAL BUSINESS 1. Consider an ordinance authorizing the issuance and sale of City of Beaumont, Texas, Certificates of Obligation, Series 2013 in an estimated amount not to exceed $43 Million; levying taxes to provide for payment thereof; and containing other matters related thereto. Results of the sale will be presented by the City's Financial Advisor, Dustin Traylor of RBC Capital Markets. A recommendation will be made to award the bonds to the underwriters. Interest is payable semiannually in March and September beginning March 1, 2014. The Bank of New York Mellon Trust Company, N.A. Dallas, Texas, will serve as paying agent/registrar. Delivery and receipt of the proceeds by the City are scheduled for August 27, 2013. Principal and interest is paid from the Debt Service Fund which is supported by property taxes. The new debt will require the debt service rate to be increased by$.05 per$100 of assessed valuation. The rate will come before Council for consideration in September. Approval of ordinance. Councilmember Pate moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF THE CITY OF BEAUMONT,TEXAS CERTIFICATES OF OBLIGATION,SERIES 2013; LEVYING TAXES TO PROVIDE FOR PAYMENT THEREOF; AND CONTAINING OTHER MATTERS RELATED THERETO. Councilmember Smith seconded the motion. AYES: MAYOR AMES, COUNCILMEMBERS COLEMAN, GETZ, PATE AND SMITH NAYS: NONE MOTION PASSED Ordinance 13 - 046 2. Consider a resolution authorizing the City Attorney to bring suit to compel the filing of hotel occupancy tax reports and to collect hotel occupancy taxes due the City of Beaumont by Economy Inn/Prabhubhai Jivanji Bhakta. Minutes-Date State law gives to the City of Beaumont authority to levy a tax not to exceed seven percent (7%) of the cost of occupancy of any room or space paid for in a hotel. The hotel or its representative is required to collect the occupancy tax, timely file with the City a monthly report showing the taxes collected and remit such taxes monthly to the City of Beaumont. The City of Beaumont has enacted Chapter 18, Article 18.03, Sections 18.03.001 through 18.03.007, of the Code of Ordinances to address hotel occupancy taxes. State law also gives to the City authority to bring suit against the person who has failed to file the monthly report. Further, state law gives to the City authority to bring suit against the person who has collected and failed to pay the tax to the City when due. At the same time, authority is given to enjoin the person from operating a hotel until the report is filed and the tax is paid in full. Economy Inn at 53515 College Street in Beaumont has failed to file its hotel occupancy tax reports with the City since March 2011. Further, Economy Inn is delinquent in the remittance of the current hotel occupancy taxes collected for the period of time of March 2011, through the present, in the estimated amount of$8,836.36, including penalties and interest. Request is hereby made to bring suit to compel the filing of hotel occupancy tax reports and collect delinquent hotel occupancy taxes due the City of Beaumont by Economy Inn/Prabhubhai Jivanji Bhakta. Potentially recoverable revenue in the estimated amount of $8,836.36. Approval of resolution. Councilmember Coleman moved to APPROVE A RESOLUTION THAT THE CITY ATTORNEY IS HEREBY AUTHORIZED TO FILE AND PROSECUTE A LAWSUIT AGAINST ECONOMY INN/PRABHUBHAI JIVANJI BHAKTA, BEAUMONT,TEXAS,TO COMPEL THE FILING OF HOTEL OCCUPANCY TAX REPORTS AND TO COLLECT DELINQUENT HOTEL OCCUPANCY TAXES.Councilmember Smith seconded the motion. AYES: MAYOR AMES, COUNCILMEMBERS COLEMAN, GETZ, PATE AND SMITH NAYS: NONE MOTION PASSED Resolution 13 — 158 3. Consider a resolution in support of a Finding of Public Interest in Entergy and ITC Holding's Proposed Transfer, Merger, and Spin-Off of Transmission Business from Entergy to ITC Holdings. On February 19, 2013, Entergy (ETI) and ITC Holdings (ITC) filed an application with the Public Utility Commission of Texas for Approval of Change of Ownership and Control of Transmission Business, Transfer of Certification Rights, Certain Cost Recovery Approvals, and Related Relief. The Steering Committee of Cities within the ETI service area Minutes-Date intervened in the proceeding and filed testimony opposing the application as originally filed by ETI and ITC. The major issue raised by Cities' case involve the transmission cost increases as a result of the rates anticipated to be approved by the Federal Energy Regulatory Commission, the projected benefits to be received as a result of ITC ownership, the oversight afforded to the Texas Regulatory Authorities, including Cities, of the transmission business, the quality of service from ITC, and the ability to perform and finance necessary storm restorations. The Cities' expert testimony set out a cost benefit analysis concluding that the benefits of the transaction were not discernible at the present time and were not guaranteed to offset the known quantifiable transmission cost increases to customers. Cities' experts testified that a public interest finding could be met if the Commission imposed conditions-including a condition that no cost increase resulting from ITC Holding's ownership of the transmission business would be permitted to be charged to Texas customers without first finding that the quantifiable economic benefit of the transaction outweigh the anticipated cost increases resulting from the spread between ITC Holding's overall rate of return relative to Entergy's overall rate of return. Representatives of the various Cities received a letter dated July 3, 2013 from representatives of both Entergy and ITC agreeing to abide by the conditions of transfer recommended by the Cities' expert testimony and to guarantee that no transmission cost increase caused by ITC ownership of the system would be charged to Texas customers without first demonstrating that the quantifiable benefits resulting from the transaction more than offset the increase transmission cost associated with ITC's rate setting formula. On July 9, 2013, the Administrative Law Judges hearing the case agreed with Cities'expert testimony that the proposal as originally filed and as amended through rebuttal testimony is not in the public interest. The Administrative Laws Judges also agreed that if the Commission were to approve the proposed transaction, the Commission should impose the conditions listed in Cities' expert testimony. Representatives of the Steering Committee of Cities met on Wednesday, July 10th with representatives of Entergy and ITC Holdings to discuss the issues raised by the case and the terms and guarantees set forth in the letter dated July 3, 2013. At the conclusion of the meeting, the Steering Committee of Cities met and voted to support a finding of public interest for the Commission's consideration of the proposed transfer of Entergy's transmission business to ITC Holdings conditioned upon the the terms and guarantees contained in the letter to the Cities. The main components of the commitment include, but are not limited to providing rate mitigation of approximately $77 million during the first five years following the close of the transaction that is intended to offset the retail rate impact as it pertains to anticipated benefits. The commitment is to continue the rate mitigation beyond the five year period to the extent that the transmission cost increases are not offset by benefits resulting from the transaction. Additionally, the company has committed to providing customers a $13.1 million refund (bill credit) over the first three years following the close of the transaction which is intended to compensate customers for the transition to ITC's forward-looking rate. Also, ITC's commitment includes a local corporate presence, use of local work force and local civic and charitable support. Minutes-Date AYES: MAYOR AMES, COUNCILMEMBERS COLEMAN, GETZ, PATE AND SMITH NAYS: NONE MOTION PASSED Resolution 13 - 160 COUNCILMEMBER COMMENTS COUNCILMEMBER SMITH - NONE COUNCILMEMBER SAMUEL - ABSENT COUNCILMEMBER PATE - COMPLIMENTED LAURA CLARK, CFO AND STAFF, CITY MANAGER KYLE HAYES, CITY ATTORNEY TYRONE COOPER AND THE STAFF OF ORGAIN, BELL AND TUCKER THAT ARE WORKING HARD EVERY DAY TO MAKE SURE THAT THE FUNDS WE SPEND ARE SPENT EFFECTIVELY, NOT EVERYBODY GETS REMOTELY CLOSE TO THE FINANCIAL RATINGS THAT BEAUMONT HAS,APPRECIATES THE JOB BILL MUNSON DOES FOR MUNICIPAL TRANSIT, WE'RE FORTUNATE TO HAVE SOMEONE WITH HIS EXPERIENCE COORDINATING THE WHOLE EFFORT, MENTIONED SOUTH KOREAN GOLFER INBEE PARK AND THAT IF SHE WINS THE BRITISH OPEN AT ST.ANDREWS, SHE WILL BE THE FIRST WOMAN TO WIN THE GRAND SLAM SINCE BABE DIDRIKSON ZAHARIAS IN 1950, ENCOURAGED EVERYONE TO VISIT THE BABE DIDRIKSON ZAHARIAS MUSEUM TO SEE HER ACCOMPLISHMENTS, WE ARE FORTUNATE TO HAVE THE WORLD'S GREATEST FEMALE ATHLETE AND SO MANY OTHER GREAT ATHLETES FROM BEAUMONT MAYOR PRO TEM WRIGHT - ABSENT COUNCILMEMBER GETZ - COMMENTED ON THIS PAST WEEKEND'S CONCERT IN THE PARK AT ROGERS PARK,THANKED CITY STAFF FOR MAKING IT A GREAT EVENT, IT WAS VERY WELL ATTENDED COUNCILMEMBER COLEMAN - ANNOUNCED A PRESS CONFERENCE FOR LET'S MOVE: FIGHT AGAINST CHILDHOOD OBESITY ON TUESDAY AT 1:00 P.M. IN FRONT OF CITY HALL, THERE WILL BE GOOD NEWS FOR THE CITY AND THE FUTURE OF OUR CHILDRENS' HEALTH CITY ATTORNEY COOPER - NONE CITY MANAGER HAYES - NONE MAYOR AMES - NONE Minutes-Date Public Comments (Persons are limited to three minutes) Jonathan Mark Cassidy 1475 110 East Beaumont TX Spoke regarding a felony conviction that he received 35 years ago, summarized the steps involved in trying to have this charge removed from his record There being no further business, Council adjourned at 2:09 p.m. A io available upon reque in the City Clerk's Office. B ec Y � Ame o ��MO�`�!!! ! 4► Stephanie Gandy, eputy C' y Clerk s AW Minutes-Date