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MIN JAN 08 1985 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD JANUARY 8, 1985 BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in regular session this the 8th day of January, 1985, with the following present: HONORABLE: William E. Neild Mayor Joseph D. Deshotel Councilman At Large G. Wayne Turner Councilman At Large Nell Pruitt Weisbach Councilman, Ward I Mike Brumley Councilman, Ward II Audwin Samuel Councilman, Ward III David W. Moore Councilman, Ward IV Karl Nollenberger City Manager Lane Nichols City Attorney Myrtle Corgey City Clerk -000- The Invocation was given by the Reverend John Mowry, pastor of the First Church of God of Anderson. The Pledge of Allegiance was led by Councilman Deshotel. -000- One proclamation was issued: "MH-MR of Southeast Texas Day in Beaumont" - January 8, 1985. -000- The following items of the Consent Agenda were considered: Approval of the Minutes of the regular City Council session held December 18, 1985; Resolution 85-1 reappointing Wilton White and Gerald Clark to the Reinvestment Zone No. 1 Commission, terms expiring December 31, 1986; reappointing Judge Larry Gist to the Clean Community Commission, term expiring September 30, 1986; appointing Etta Lois Hope and reappointing Bessie Zecher to the Senior Citizens Advisory Committee, terms expiring September 30, 1986; and reappointing Betty Reinstra to the Library Commission, terms expiring October 31, 1986; -1- January 8, 1985 Ordinance No. 85-1 establishing the Martin Luther King, Jr. holiday on the third Monday in January was considered: ORDINANCE NO. 85-1 ENTITLED AN ORDINANCE DECLARING THE THIRD MONDAY IN JANUARY A CITY HOLIDAY IN HONOR OF THE BIRTHDAY OF DR. MARTIN LUTHER KING, JR. ; PROVIDING FOR SEVERABILITY AND PROVIDING FOR REPEAL. Resolution 85-2 authorizing repairs to a vertical turbine pump at the Virginia Street Lift Station from Peabody Floway at $3,557.00; Resolution 85-3 authorizing purchase and installation of 90 feet chain link fence for the Fleet Service Center from United Fence at $1,455.00; Resolution 85-4 authorizing a six-month contract for ready-mix concrete for the Street, Drainage, Water and Sewer Divisions from Smith Materials (5 sack ready mix at $51.50 per cubic yard, add or deduct cement at $4.00 per sack; Type III High Early plus $3.00 per cubic yard); Resolution 85-5 adopting a Policy Manual for the Beaumont Municipal Transit System; and Resolution 85-6 authorizing purchase of seven (7) radar units for the Police Department from M.P.H. Industries at $6,427.75. The Consent Agenda was approved on a motion made by Councilman Deshotel and seconded by Councilman Turner. Question: Ayes: All Nayes: None -000- A public hearing for the issuance of $4.7 million in revenue bonds for Deerwood Apartments was considered: CITY MANAGER NOLLENBERGER: The first item today, Your Honor, is a public hearing and it relates to the fact that the Beaumont Multi-Family Housing Finance Corporation has issued an inducement resolution agreeing to finance $4.7 million worth of revenue bonds for the multi-family project called the Deerwood Apartment Project. It is to be developed by Rowan Smith, which is Regional Construction, Inc. , and it is going to consist of 168 units of apartment dwellings. Under the guidelines for the Multi-Family Housing project, at least 20 percent of the units have to be . . . have to qualify for low/moderate income range individuals. -2- January 8, 1985 MR. NOLLENBERGER continued: Under the laws of the federal government relating to these types of bonds, it requires that the City Council hold a public hearing prior to the issuance of the bonds and that they pass a resolution approving the bonds. After that, it would go back to the Multi-Family dousing Corporation for final approval of the bonds themselves and actual issuance of the indenture. ,Just to clarify, the City has no security for repayment of the bonds. . .behind the bonds. The sole source of security is the revenue of the project itself and that is understood by the purchaser of the bonds. Subsequent to the public hearing, you will consider a resolution to actually adopt and approve these, Your Honor. In answer to a question by Mr. Turner concerning a payment to Multi-Family dousing Corporation at closing, the Manager told Council: The payment . . . there's two (2) different aspects that go into that that the Multi-Family Housing Corporation will deal with. One is that there is a 1% closing fee. That 1% closing fee is $47,000.00 if the full issuance is made and that goes to the Multi-Family Housing Corporation. In addition, the developer has proposed, and the Multi-Family Housing Corporation has accepted, an offer to have an on-going payment during the course of the bonds of certain number of base points on the bonds which would yield abaout $12,000.00 per year .roughly which would go back into low income housing in the community. That's not a condition that the City Council is dealing with at the moment, but it is a condition that the Multi-Family Housing Corporation has passed and has accepted and would be included in the actual bond trust documents so that it would be tied down. MAYOR NEILD: At this time, I declare the public hearing open in connection with the issuance of revenue bonds for Deerwood Apartments. Mr. Rowan Smith, developer, addressed the public hearing in support of the issuance of the bonds for the project. Messrs. Josh W. Allen, Sr. , 1390 Calder; Wes Callaway, Jr. , 1390 Audubon, and Frank Dover, 1215 Sandwood; addressed the hearing in opposition to the issuance of revenue bonds. Messrs. Rick Warchol, 1155 S. I-10, and Elray Wilson, 8275 Old Voth Road, addressed the hearing in support of the project. A motion to close the public hearing was made by Councilman Turner and seconded by Councilman Samuel. Question: Ayes: All Nayes: None -3- January 8, 1985 A resolution authorizing issuance of $4.7 million in revenue bonds by the Beaumont Multi-Family Housing Finance Corporation for Deerwood Apartments (Rowan Smith, Regional Construction, Inc. , developer) was deferred two weeks to review additional data to be received from the Apartment Management Association and staff concerning occupancy rate in next week's Council Workshop Session with document to be placed on the following week's business agenda for action on a motion made by Councilman Turner and seconded by Councilman Samuel. Question: Ayes: Mayor Neild Nayes: Councilman Councilman Weisbach Deshotel Councilman Councilman Brumley Turner Councilman Samuel Councilman Moore -000- Ordinance No. 85-2 granting a Specific Use Permit for a garage apartmentin an RS (Residential Single Family) district at 1 Bayou Bend Drive (requested by James L. Hayes) was considered: ORDINANCE 30. 85-2 ENTITLED AN ORDINANCE ISSUING A SPECIFIC USE PERMIT FOR A GARAGE APARTMENr ON PROPERTY LOCATED AT 1 BAYOU BEND DRIVE. The ordinance was approved on a motion made by Councilman Deshotel and seconded by Councilman Brumley. Question: Ayes: Mayor Neild Nayes: Councilman Councilman Turner Deshotel Councilman Weisbach Councilman Brumley Councilman Samuel Councilman Moore -000- Ordinance No. 85-3 granting a Specific Use Permit to establish a day care center for children in an R-3 (Modified Two Family and Multiple Dwelling) district at 2190 Broadway (requested by Carol Jones) was considered: ORDINANCE NO. 85-3 ENTITLED AN ORDINANCE ISSUING A SPECIFIC USE PERMIT FOR A DAY CARE CENTER FOR CHILDREN ON PROPERTY LOCATED AT 2190 BROADWAY. The ordinance was approved on a motion made by Councilman Deshotel and seconded by Councilman Brumley. Question: Ayes: All Nayes: None -4- January 8, 1985 The first reading of an ordinance amending the franchise with Liberty Tele-Communications, Inc. was held: AN ORDINANCE AN ORDINANCE AMENDING THE FRANCHISE GRANTED TO BEAUMONT CABLEVISION, INC. , PREDECESSOR OF LIBERTY T.V. CABLE, INC. ON NOVEMBER 25, 1975, BY INCREASING THE PAYMENTS TO BE MADE THEREUNDER; BY EXTENDING THE TERM THEREOF; AND BY REMOVING CITY REGULATORY CONTROL OF RATES. (Councilman Moore left during consideration of this item. ) The ordinance was passed to its second reading on a motion made by Councilman Turner and seconded by Councilman Samuel. Question: Ayes: All Nayes: None (Councilman Moore returned to the meeting. ) -000- Ordinance No. 85-4 amending Section 26-23 of the Code of Ordinances, relating to speed zones, was considered: ORDINANCE NO. 85-4 ENTITLED AN ORDINANCE AMENDING CHAPTER 26, SECTION 26-23 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT TO ESTABLISH MAXIMUM SPEED LIMITS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. Those amended are: 11th Street from College to Edmonds reduced from 40 to 35 m.p.h. ; Phelan Boulevard from Pru tzman to Major be established at 40 m.p.h. ; Walden Road from IH-10 to approximately 3,900 feet west of IH-10 increased to 35 m.p.h. and Walden Road from 3,900 feet west of IH-10 to Major Drive increased to 45 m.p.h. The ordinance was approved on a motion made by Councilman Deshotel and seconded by Councilman Turner. Question: Ayes: All Nayes: None -000- Resolution 85-7 authorizing execution of an agreement with South East Texas Regional Planning Commission for planning funds at an estimated $30,000.00 available through Section 8 of the Urban Mass Transportation Act of 1964, as amended, was approved on a motion made by Councilman Weisbach and seconded by Councilman Deshotel. Question: Ayes: All Nayes: None -5- January 8, 1985 Councilman Samuel told Council he had received a letter from Mrs. Barbara Murphy, 5465 Gober Road, and two phone calls from some P.T.A. members who are concerned about the bus stop by French High School, at the corner of Ernestine and Concord. He asked that something be done for the safety of those waiting for buses so that they would not have to wait in the roadway. Councilman Moore read the following statement: "When I came on to Council, I truly became a believer and a practitioner of watching my words and respecting their power, for there would be times where they could influence, hurt, or mislead citizens. Last week, when I was contacted by the press and asked if I planned to attend a dinner at a private club, I told him I had not decided, just returning home, and to contact me later for a decision; however, I did state that it would be sad if I had to lock myself out of any function that was important to this City. With that comment, I wanted to check for myself to see if written or unwritten laws existed that prevented people from all walks of life from being members. After careful examination, I must state that I cannot, in good conscience, attend a function where the practices of discrimination are still dominant. I'm not condemning the citizens that are members, for that is their privilege; however, I would like to appeal to some individuals' sense of equality and 'human consideration for others, so that we might bridge some of the gaps between our community. It is understandable that social economic barriers do exist and will exist until people of all colors decide we must go forward in a positive direction - not one group traveling behind the other, but together, creating synergy that will; hopefully, propel our City forward. It would be remiss of me if I did not acknowledge the efforts many have made to bring about harmony, yet it would be equally damaging if I did not address an injustice that exists in our City. So, I'm soliciting the support of this Council and other public officials to discourage practices that promote the ideals of the past, for if we are going to be a City of the future, we must challenge head- on our problems of today and give all citizens the right to self respect, dignity and pride in the place where they live. -000- Mr. J. C. Leggett, 1849 Washington Boulevard, addressed Council to question utility rates. -6- January 8, 1985 Mayor Neild called an Executive Session pursuant to Section II of the Texas Open Meetings Act to be held immediately following the City Council Workshop Session. -000- There being no further business, the meeting was recessed before continuing with the City Council Workshop Session. -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 January 8, 1985. Myrtle Corgey City Clerk -7- January 8, 1985