Loading...
HomeMy WebLinkAboutMIN OCT 26 1999 M I N U T E S - CITY OF BEAUMONT Lulu L. Smith DAVID W. MOORE, MAYOR John K. Davis, Mayor Pro Tem Guy N. Goodson CITY COUNCIL MEETING Andrew P. Cokinos Bobbie J. Patterson OCTOBER 26, 1999 Becky Ames Lane Nichols, City Attorney Stephen J. Bonczek, City Manager Barbara Liming,City Clerk The City Council of the City of Beaumont, Texas, met in a regular session on October 26, 1999, at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 1:35 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 * Consent Agenda Mayor Pro Tern Davis called the meeting to order at 1:35 p.m. The Reverend Ronald Randolph, Pilgrim Rest Baptist Church, gave the invocation. Councilmember Cokinos led the pledge of allegiance. Present at the meeting were: Mayor Pro Tern Davis, Councilmembers Smith, Goodson, Cokinos, Ames, and Patterson. Mayor Moore was absent. Also present were: Stephen J. Bonczek, City Manager; Lane Nichols, City Attorney; and Barbara Liming, City Clerk. *Presentations and Recognitions One proclamation was issued: "The Vietnam Wall Experience," Friday, October 29 - 31, 1999. Mayor Pro Tern Davis announced that Mayor Moore was one of 12 mayors invited to Florence, Italy to participate in a symposium, one of a series of international exchanges taking place as part of the United States Conference of Mayors 2000 initiatives. *Public Comment: Persons may speak on scheduled agenda items. Citizen comment was invited on the Consent Agenda and Regular Agenda Items 6-10. Mr. Gaylon Leon Cooper, 6570 Wilder Drive, Chairman of the Board of Housing Opportunities of Texas, Inc., addressed council to ask to be considered for participation in the Economic Development through Affordable Housing Program for FY 2000. *Consent Agenda * Approval of the minutes of the regular meeting held October 12, 1999 and the special Partnership in Governance meeting held October 19, 1999. * Confirmation of committee appointments - Lanis McWilliams to the Beaumont Advisory Commission for Prevention of Child Abuse and Neglect for a term of October 25, 2001; Dr. Richard LeBlanc to the Convention and Tourism Advisory Committee for a term expiring July 26, 2001; Wayne Moncla to the Airport Advisory Committee for a term expiring October 23, 2001; Dale Hallmark to the Historical Landmark Commission for a term expiring August 18, 2001; Greg Shepard to the Keep Beaumont Beautiful Commission for a term expiring October 19,2001;William Lee to the Keep Beaumont Beautiful Commission for a term expiring October6,2001;Jon Curless to the Keep Beaumont Beautiful Commission fora term expiring August 21, 2001; Dohn LaBiche to the Planning Commission for a term expiring September 9, 2001; Linda Gaudio to the Senior Citizen Advisory Committee for a term expiring October 9, 2001; Joyce Verde to the Sister City Commission for a term expiring August 21, 2001; Kathryn Walker to the Transit Advisory Committee for a term expiring October 23, 2001; and Ernest Wilson to the Transit Advisory Committee for a term expiring September 4, 2001. - Resolution No. 99-312 A) Approve a contract for the asbestos abatement of a structure located at 800 Grand Street.(with AAR Incorporated in the amount of$23,307) - Resolution No. 99-313 B) Approve a contract for a licensed asbestos consultant. (with Health and Safety Management, Inc.) - Resolution No. 99-314 C) Approve the purchase of 102 external floppy disk drives for use in the Police and Fire Departments in conjunction with mobile data computers previously purchased.(in the amount of$21,114 plus freight charges from Accurite Technologies, Inc.) - Resolution No. 99-315 D) Approve a change order to the contract for Improvements to the Beaumont Fire Training Center. (in the amount of$3,614 with Bo-Mac Contractors, Inc.) - Resolution No. 99-316 E) Consider the acquisition of Parcels 104, 105, 110,and 111 forthe Concord Road Improvement Project. (Parcels 104 and 105, 2295 Delaware, 0.026 acre out of Lot 5, Block 1, Cousins Second Addition, A. Williams Survey, from Region Five Education Service Center in the amount of$23,603;and Parcels 110 and 111, 1129 Delaware, 0.099 acre out of Lots 5 and 6, Block 4, Morningside Addition, James Drake Survey, from Trustees of the Rose of Sharon Missionary Baptist Church in the amount of$10,165) - Resolution No. 99-317 G) Approve the purchase of three photocopiers through the State of Texas Cooperative Purchasing Program. (in the amount of$19,800.10) - Resolution No. 99-318 H) Approve a resolution authorizing the City Manager to submit a request to the Texas Historical Commission for an FY2000 Certified Local Government (CLG) grant. (in the amount of $11,800) - Resolution No. 99-319 (Item F removed to be voted upon as a separate item.) Councilmember Cokinos moved to approve the Consent Agenda. Councilmember Patterson seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Davis, Councilmembers Smith, Goodson, Cokinos, Ames, and Patterson Noes: None F) Consideran amendment to the Code of Ordinances establishing a 60-MPH speed limit on Spur 93 between US 69 (Cardinal Dr.) and FM 3514 in the city limits Minutes;October 26,1999;Page 2 Councilmember Goodson moved to approve Ordinance No. 99-80 ENTITLED AN ORDINANCE AMENDING CHAPTER 26, SECTION 26-23 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT TO AMEND A SPEED LIMIT. Councilmember Cokinos seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Davis, Councilmembers Smith, Goodson, Cokinos, Ames, and Patterson Noes: None GENERAL BUSINESS 1. Consider a request for a zone change from NC (Neighborhood Commercial) to GC-MD-2 (General Commercial-Multiple Family Dwelling-2) District and an amended specific use permit to allow the enlargement of an existing veterinary clinic at 2396 Dowlen Road. Councilmember Cokinos moved to approve Ordinance No. 99-81. ENTITLED AN ORDINANCE AMENDING CHAPTER 30 OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS, AND IN PARTICULAR THE BOUNDARIES OF THE ZONING DISTRICTS,AS INDICATED UPON THE ZONING MAP OF BEAUMONT, TEXAS, BY CHANGING THE ZONING OF PROPERTY PRESENTLY ZONED AS NC (NEIGHBORHOOD COMMERCIAL)DISTRICT TO GC-MD-2(GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING-2)DISTRICT FOR PROPERTY LOCATED AT 2396 DOWLEN ROAD, BEAUMONT,JEFFERSON COUNTY,TEXAS. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Davis, Councilmembers Smith, Goodson, Cokinos, Ames, and Patterson Noes: None Councilmember Cokinos moved to approve Ordinance No. 99-82. ENTITLED AN ORDINANCE ISSUING AN AMENDED SPECIFIC USE PERMIT TO KELLEY KAYS, DVM TO ALLOW THE ENLARGEMENT OF AN EXISTING VETERINARY CLINIC ON LAND ZONED GC-MD-2 (GENERAL COMMERCIAL-MULTIPLE DWELLING-2)DISTRICT FOR PROPERTY LOCATED AT 2396 DOWLEN ROAD, IN THE CITY OF BEAUMONT,JEFFERSON COUNTY,TEXAS. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Davis, Councilmembers Smith, Goodson, Cokinos, Ames, and Patterson Noes: None 2. Consider a request for a specific use permit to allow a barbershop in an RM-H (Residential Multiple Family Dwelling - Highest Density) District at 2885 San Jacinto. Councilmember Cokinos moved to approve Ordinance No. 99-83 ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A BARBER SHOP IN AN RM-H (RESIDENTIAL MULTIPLE FAMILY DWELLING-HIGHEST DENSITY)DISTRICT LOCATED AT 2885 SAN JACINTO, IN THE CITY OF BEAUMONT,JEFFERSON COUNTY,TEXAS. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Davis, Councilmembers Smith, Goodson, Cokinos, Ames, and Patterson Noes: None Minutes;October 26,1999;Page 3 3. Consider a request for a zone change from RS (Residential Single Family Dwelling) to RM-H (Residential Multiple Family Dwelling-Highest Density) District and a specific use permit to allow a professional and business office complex on property in the 3200 block of N. Dowlen Road. Councilmember Goodson moved to approve Ordinance No. 99-84 ENTITLED AN ORDINANCE AMENDING CHAPTER 30 OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS, AND IN PARTICULAR THE BOUNDARIES OF THE ZONING DISTRICT,AS INDICATED UPON THE ZONING MAP OF BEAUMONT, TEXAS, BY CHANGING THE ZONING OF PROPERTY PRESENTLY ZONED RS (RESIDENTIAL SINGLE FAMILY DWELLING) DISTRICT TO RM-H (RESIDENTIAL MULTIPLE FAMILY DWELLING-HIGHEST DENSITY)DISTRICT LOCATED IN THE 3200 BLOCK OF NORTH DOWLEN ROAD, BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Cokinos seconded the motion. MOTION PASSED. Councilmember Ames moved to approve Ordinance No. 99-85 ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A PROFESSIONAL AND BUSINESS OFFICE COMPLEX IN AN RM-H (RESIDENTIAL MULTIPLE FAMILY DWELLING-HIGHEST DENSITY)DISTRICT LOCATED IN THE 3200 BLOCK OF NORTH DOWLEN ROAD, IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Goodson seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Davis, Councilmembers Smith, Goodson, Cokinos, Ames, and Patterson Noes: None In response to Councilmember Goodson's request for clarification from Planning Manager Stephen Richardson regarding the City's authority under the proposed ordinance to enforce the landscape buffer's inclusion in the conceptual site plan, the City Manager stated that administration will monitor and insure adherence to the buffer stipulation. 4. Consider a request for a zone change for a 200' wide tract of land from GC-MD (General Commercial-Multiple Family Dwelling) to LI (Light Industrial) District at 5230 M.L.K. Parkway (former Port Arthur Highway). An ordinance ENTITLED AN ORDINANCE AMENDING CHAPTER 30 OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS, AND IN PARTICULAR THE BOUNDARIES OF THE ZONING DISTRICTS, AS INDICATED UPON THE ZONING MAP OF BEAUMONT, TEXAS, BY CHANGING THE ZONING OF PROPERTY PRESENTLY ZONED GC-MD (GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING) DISTRICT TO LI (LIGHT INDUSTRIAL) DISTRICT LOCATED AT 5230 M.L.K. PARKWAY, BEAUMONT, JEFFERSON COUNTY, TEXAS was introduced. The Planning Commission recommended denial, and Administration recommended approval of the ordinance based on the fact that from a proper planning prospective, consolidation of the zoning would be proper. Illegal uses within the zoning district was not considered. At the request of Mayor Pro Tern Davis, City Attorney Lane Nichols explained that Council is not bound by either recommendation. Council's determination is a legislative act that can be made considering all the uses of an LI use or property that is properly zoned LI. He said "it should be made just based on technical aspects of the way the property can be used and the recommendations which go either way." Minutes;October 26,1999;Page 4 Councilmember Patterson voiced support of the recommendation made by the Planning Commission where both pro and con arguments were heard at the joint public hearing. She stated that Beaumont's Comprehensive Plan designates this immediate area as a conservation and revitalization area and this change would not be compatible with the Comprehensive Plan nor the plan South Park is currently developing. She mentioned that on the west side of the area, a large portion of MLK is GCMD, there are schools and churches going north toward South Park, and toward Port Arthur it is mostly Light Industrial. Councilmember Patterson said it is unfortunate that the property is zoned both GCMD and LI, but supports denial of the zone change. Councilmember Goodson commented about zoning inconsistencies on the property, noted that from MLK Parkway and Cardinal Drive north to the beginning of Lamar Campus abutting MLK, all property is zoned GCMD backed by RMH, and said he thinks this was purposeful to keep certain classifications along the major artery, and thinks Light Industrial was probably layered there because of existing businesses. He spoke of the Planning Department investigating the area bounded by Rolfe Christopher Drive to the Southeast boundary of Lamar back to MLK. He said Lamar University owns property in that direction, that is the only way for them to expand, and they have a great need for various residential housing that may not be accommodative in the current zoning classification that exists on their property. Councilmember Goodson voiced support for Councilmember Patterson's position because he believes the intent was to retain something less than a heavy or light industrial classification along the Parkway. Councilmember Cokinos agreed with denial of the zone change and said he has received many calls about the applicant's plan to feature topless dancers at the business. Mayor Pro Tern Davis questioned surrounding zoning near the business, and Mr. Richardson answered that to the immediate north and south, it is zoned GCMD, and Light Industrial to the east and west. Mr. Richardson confirmed that most of the property is zoned Light Industrial, and that the determination and recommendation by staff was made because it is a good planning practice to have an entire property under one zoning category and because two thirds of the property and properties to the north, south and west are zoned Light Industrial. Mayor Pro Tern Davis stated that the use of this building, and some of the proposed uses, will still be able to take place no matter what the results of the today's vote, if a Sexually Oriented Business permit is obtained. He said that because of the conformity and legality of this issue, he will support the Administrative recommendation. Councilmember Patterson moved to deny the ordinance. Councilmember Ames seconded the motion. MOTION APPROVED. Ayes: Councilmembers Goodson, Cokinos, Ames, and Patterson Noes: Mayor Pro Tem Davis and Councilmember Smith Mayor Pro Tern Davis clarified that his position is based on this being a legal matter, and said that in essence, Council does not have the authority to deny solely on the basis of an alleged proposed use. Minutes;October 26,1999;Page 5 Councilmember Smith agreed that this is strictly a zoning change, will not change the use of the building, and that GCMD is out of context. 5. Consider a request for a zone change from RS (Residential Single Family Dwelling)to RM-M (Residential Multiple Family Dwelling-Medium Density) District for property located in the 8800-8900 block of Phelan Boulevard. (Councilmember Patterson left Council Chambers at 2:04 p.m. and was not present for the vote.) Councilmember Cokinos moved to approve Ordinance No. 99-86 ENTITLED AN ORDINANCE AMENDING CHAPTER 30 OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS, AND IN PARTICULAR THE BOUNDARIES OF THE ZONING DISTRICTS,AS INDICATED UPON THE ZONING MAP OF BEAUMONT, TEXAS, BY CHANGING THE ZONING OF PROPERTY PRESENTLY ZONED RS (RESIDENTIAL MULTIPLE FAMILY DWELLING-MEDIUM DENSITY) DISTRICT LOCATED IN THE 8800- 8900 BLOCK OF PHELAN BOULEVARD, BEAUMONT,JEFFERSON COUNTY,TEXAS. Councilmember Smith seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Davis, Councilmembers Smith, Goodson, Cokinos, and Ames Noes: 6. Consider granting the City Manager authority to implement the co-pay changes in the prescription drug program and contribution rate changes for employees and retirees in the medical plans. The City Manager reviewed the changes in co-pay charges for civilian and civil service employees and retirees. Mayor Pro Tern Davis said it is wise to address cost s of insurance and all other phases of insurance relating to costs. Councilmember Smith stated that generic drugs are acceptable for some patients, but are not recommended for certain problems, especially cardio vascular patients. Generic drugs only have to meet the minimum standard of 65 to 70 percent of the efficacy of brand name drugs. She said there are many diseases that cannot be treated effectively with that 30 to 35 percent difference. (Councilmember Patterson returned to Council Chambers at 2:11 p.m.) Mr. Bonczek informed Council that employees have the opportunity to choose brand name drugs at a higher co-pay. Councilmember Smith moved to approve Resolution No. 99-320. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tem Davis, Councilmembers Smith, Goodson, Cokinos, Ames, and Patterson Noes: None Minutes;October 26,1999;Page 6 7. Consider approving a one year contract with the option to renew for four additional years with Eckerd Health Services for a prescription drug benefit. After introduction of the resolution, Councilmember Goodson commended the Human Resources Director and staff for doing an excellent job in finding cost savings. He spoke of Script-Care's financial commitment and the number of employees they employ here, expressed concerns with the option to renew for four additional years, no information about escalating terms or cost, and expressed a desire to review terms of the contract. Mr. Bonczek said the intent is to retain the existing program for four years, but will be an option on both sides. Mrs. Lundy reported that the options would be to look at the consumer price index increase in medical or pharmacy costs or actual experience. Further questions were raised by Councilmember Goodson. Councilmember Cokinos reported hearing that a local pharmacy would have to close their business if the contract was not renewed with Script Care. The City Manager explained that the pharmacies will remain on the list and that employees may utilize the same services they have been accustomed to using. After further discussion, Mayor Pro Tern Davis requested that this item be deferred to allow information to be submitted in answer to Councilmember Goodson's and Councilmember Cokinos' questions and concerns. 8. Consider approving the purchase of 35 personal computers for use in the Information Services Division (IS) Concilmember Smith moved to approve Resolution No. 99- 321 authorizing the purchase of thirty five (35) personal computers from En Point Technologies in the amount of$50,925 through the State of Texas Cooperative Purchasing Program. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Davis, Councilmembers Smith, Goodson, Cokinos, Ames, and Patterson Noes: None 9. Consider approving a contract for the purchase of cement stabilized base for use by the Public Works Department, Streets and Drainage Division. Councilmember Smith moved to approve Resolution No. 99-322 authorizing a one year contract with APAC-Texas, Inc. for purchase of cement stabilized base at $16 per ton. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Davis, Councilmembers Smith, Goodson, Cokinos, Ames, and Patterson Noes: None 10. Consider adopting the fees included in Appendix "B" of the 1997 Standard Building Code Minutes;October 26,1999;Page 7 Councilmember Smith moved to approve ORDINANCE NO. 99-87 ENTITLED AN ORDINANCE AMENDING CHAPTER 6,SECTION 6-20 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT TO AMEND BUILDING PERMIT FEES BY ADOPTING APPENDIX"B"OF THE 1997 STANDARD BUILDING CODE. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Davis, Councilmembers Smith, Goodson, Cokinos, Ames, and Patterson Noes: None OTHER BUSINESS *Review proposals relating to the FY 2000 Housing Programs The City Manager referred to the report given to Council on affordable housing and new initiatives proposed for direction and consideration as part of the Economic Development Program. He advised Council that Executive Assistant and Economic Development Director Kyle Hayes and he have been meeting with Johnny Beatty of Community Development and Richard Chappell of Housing to discuss various proposals to construct affordable housing and provide counseling and financing to potential home buyers. Mr. Bonczek also commented about information submitted to Council regarding programs for the Avenues, College Street, Charlton Pollard, West Oakland, and Pear Orchard neighborhood associations and invited Housing Coordinator Richard Chappell to review proposals relating to the FY2000 Housing Program, Mr. Chappell highlighted the mission of economic development through affordable housing, strategic issues for FY2000, targeted neighborhood revitalization, owner-occupied rehabilitation for elderly and disabled residents and priorities as shown in Exhibit "A." He addressed the funds available through CDBG, HOME grants, and the Rental Rehab Program Income and reviewed the requests by the Charlton-Pollard Neighborhood Association, Inc., Southeast Texas Community Development Corporation, Inc. Statewide Consolidated Community Development Corporation, Inc. and Housing Opportunities of Texas, Inc. with staff recommendations for each entity. Mayor Pro Tern Davis confirmed that funds previously slated for Charlton Pollard are being transferred with $100,000 to be used for Economic Development and $45,000 for Street improvements and complimented Statewide Consolidated Community Development Corporation for the quality and level of services given to clients. Other discussion included the availability of assistance from Small Business Revolving Loan Fund personnel, administrative and operating cost limits, housing in the Avenues area, concerns about leasing and rental of houses, focus to remain on home buyers and not assisting with development of a leasing business, and a request for exact information on who is profiting from a construction or rehabilitation of properties. Mayor Pro Tern Davis advised Planning Manager Richardson to disperse adequate information to residents in the Pear Orchard neighborhoods when activity begins there, commended the HOME program for Beaumont, and commented about home building for sale and emphasized preferring a specific time frame on home leases that culminate in a Minutes;October 26,1999;Page 8 sale. He stated that his interpretation is that Council is most concerned with house building and voiced the importance of the audit portion of requests. COMMENTS * Councilmembers comment on various subjects Councilmember Patterson announced that the South Park Neighborhood Association meeting will be held Thursday evening at 6:30 p.m. at South Park Baptist Church and reminded everyone to early vote by Friday or on election day, November 2. * City Manager's Report Mr. Bonczek thanked all those who attended the Partnership in Governance meeting. He addressed conducting only a work session on November 2, explained the purpose and advantage of an extended work session and requested Council's input on the proposed agenda. He spoke about the Partnership in Governance meeting achieving desired objectives and strengthening the Council-Administration relationship, announced that a new evaluation format will be presented to Council, discussed the focus on the next Partnership meeting scheduled for April. Mr. Bonczek spoke of creating a Financial Improvement Team (FIT), consisting of community business leaders who would provide advice on prevalent financial issues, which would assist him in making well-informed recommendations to Council, working in conjunction with the Beaumont Housing Authority and Main Street to conduct a market rate housing program for the downtown area. He mentioned EMS initiative updates and announced that the Beaumont Municipal Transit Authority is receiving an additional $407,000 State Urban Transportation Grant from TxDOT. * Public Comment (Persons are limited to 3 minutes) Ms. Georgine Guillory, 3690 South 11th Street, thanked the City Manager for attending the Pear Orchard Neighborhood Association meeting and addressed Council to suggest that the proposed library to be built at 11th Street and Fannett Road be named after Mr. James F. Jackson, a respected educator and last principal at the former Hebert High School. Mr. Don Houchen, 2114 Chimney Rock, Houston, addressed Council as a representative of Eckerd Health Services, and commended Human Resources Director Glenda Lundy and her staff for their hard work relative to the prescription drug benefits plan. He mentioned that the contract requires that the same pharmacy network remain in place, stated that no pharmacy would lose income with this contract, discussed the number of Beaumont residents employed by Eckerd, and commented about their willingness to work with the City regarding length of a contract. Mrs. Rosie Jones, Executive Director for Statewide Consolidated Community Development Corporation, addressed Council to express excitement in being a conduit to provide needed assistance and affordable housing to deserving families in Beaumont and commended Council for their efforts. Minutes;October 26,1999;Page 9 Police Officer Carmen Apple, 1215 Longfellow, announced that the "Cops and Kids Picnic" will be held Saturday, October 30 at Fair Park from 10:00 a.m. to 2:00 p.m. She extended an invitation to the City Manager and Council to attend this joint effort of Jefferson County law enforcement agencies. An unidentified gentleman addressed Council to request consideration be given to widening Delaware Street, near Gulf, and Leight Street, from Cleveland to Magnolia, because of the hazardous traffuc situations created by the narrow streets. EXECUTIVE SESSION Executive Session in accordance with Section 555.071 of the Government Code to discuss contemplated or pending litigation: Janice Haynes v City of Beaumont et al Viola Edwards et vir v City of Beaumont et al Claim of Sherry Query Executive Session in accordance with 551.074 of the Government Code to discuss the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer: specifically the City Attorney and City Clerk There bing no other business, the meeting adjourned at 3:19 p.m. J9 K. Davis, Mayor Pro Tern Barbara Liming, City Clerk Minutes;October 26,1999;Page 10 INTER-OFFICE MEMORANDUM City of Beaumont,Texas Community Development Division Date: October 18, 1999 To: CITY COUNCIL From: Richard Chappell, Housing Manager Through: Stephen Richardson, Planning Manager Subject: HOUSING PROGRAMS FY 2000 COMMENTS ECONOMIC DEVELOPMENT THROUGH AFFORDABLE HOUSING Mission: The construction of new affordable houses, the provision of first-time home buyer's assistance and the rehabilitation of older homes, are activities which help preserve and expand the City's residential tax base. The objective is to develop viable urban communities and improve economic opportunities, principally for persons of low and moderate income. Strategic Issues - FY 2000 Targeted Neighborhood Revitalization Owner-Occupied Rehabilitation (Elderly and Disabled Residents) Priorities: 1. Improve expenditure rates of CDBG and HOME Programs. 2. Complete existing contracts and support CHDO's development to self sufficiency. * Reward high performing CHDO's with contract resources- extensions and new funds. EXHIBIT "A" 3. Reprogram oldest prior year funds into activities which can be completed quickly. a. Acquisition/Rehabilitation of single family rental property b. First time home buyers assistance - existing homes C. First time home buyers assistance- new construction 4. Fund Activities in Support of Council Approved Neighborhood Plans (a) Avenues - Objectives: 5 (G1); 19 (G3); 32 (G6) and 33 (G6) (b) Pear Orchard - Objectives: 5-1; 1-6; 2-6; and 3-6 (c) Charlton-Pollard - Objectives: 5-1; 2-6; 3-6 and 4-6 (d) South Park (In process) 5. Fund Special Neighborhood Based Activities Example: Edwards School Site -North End 20 homes - 2.5 acre park 6. Maximize Local Low to Moderate Income Person Input and Assist Most Vulnerable Populations. Support Beaumont based Community Housing Development Organizations with local boards. 7. Encourage Leveraging of HUD Grant Program Resources. Example: (1) Bank Financing (Consider Utilizing Credit Enhancements and Loan Guarantees) * Interim Construction Loans * Permanent Mortgage Financing (2) Matching Funds * Sisters of Charity, FHLB * Rental Rehab Program Income * City& Community Donations (3) TDHCA Funds * Low Income Housing Tax Credits * Housing Trust Funds FUNDS AVAILABLE DB 1997 Rental Rehab Multi-family $ 10,000 1998 Rental Rehab Multi-family 68,000 1998 Street Improvement 125,000 1998 Charlton-Pollard Economic Development 100,000 TOTAL CDBG $303,000 HOME 1994 Homeowner Assistance $ 74,106 1996 SCCDC Project Costs 3,428 1996 SCCDC Homeowner Assistance 24,958 1996 MC Homeowner Assistance 73,894 1999 Home Admin and Operating Costs 83,700 1999 Home Buyer Assistance 626,750 1999 CHDO -Reserve 125-550 $ 1,012,386 Rental Rehab Program Income (Use for Home Matching Funds) Construction(Program Income) $ 3,000 Owner Occupied P I 179,310 Administration 500 $ 182,810 FUNDING RECOMMENDATIONS FY 2000 (1) Charlton-Pollard Neighborhood Association, Inc. Request: $145,000-funds are requested to acquire and rehabilitate three houses ($120,000) for lease or sale to low to moderate income families. Funds would also be provided ($25,000) for administrative and operating costs. Recommendation, Approve funds in the amount of$145,000. Funding Source: Reprogram $145,000 from 1998 CDBG Program (Charlton-Pollard Economic Development - $100,000 and Street Improvements - $45,000). The funds for Charlton-Pollard Economic Development can be replaced in the 2000 CDBG Program for land acquisition and project design. The funds for street improvements can be reallocated from the Rental Rehabilitation program income to make a Match Contribution to the HOME Program. Comments: The Charlton-Pollard Neighborhood Association, Inc. (CPNA) is prepared to receive CHDO designation and to complete the acquisition and rehabilitation of three (3) houses. The CPNA has requested that funds for the Economic Development (Strip Mall) $100,000 are replaced in the 2000 CDBG Program. (2) Southeast Texas Community Development Corporation, Inc. (SETCDC) Request: (1) $50,000-funds are requested to capitalize a revolving loan fund which would pay the costs of land acquisition and pre-development fees for five(5) lots (a maximum of$10,000 per lot). Recommendation: Do not approve this funding request. The cost to the home buyer would increase by a maximum of $10,000 per home which would substantially decrease affordability. Funding Source: CDBG. Comments: The City approved a contract with SETCDC in the amount of$212,500 from 1998 CDBG funds to pay for lot acquisition and site development costs. The present program maintains home buyer affordability by contributing the cost of site acquisition and development. It is imperative that affordability is maintained for the benefit of the low income families who purchase the homes. Request: (2) $300,000 - funds are requested to capitalize a revolving loan fund which would provide interim construction loans for contractors to build five (5) houses ($60,000 per house). Recommendation: Refer to the Small Business Revolving Loan Fund Committee for possible funding since this is a loan request. Do not approve a contract for grant funds for this activity which would require an allocation of CDBG or HOME funds. Funding Source: Small Business Revolving Loan Fund Program Income. Comments: The funding of a revolving loan fund for interim construction loans is a complex staff intensive activity best performed by a bank. Consideration can be given to credit enhancement in the form of a limited loan guaranty from the City. The effect of SETCDC's contractual obligations in Port Arthur to construct nineteen (19) units of multi family houses and nineteen (19) units of single family homes must be considered. The recommended course of action with SETCDC at the present time is to renew their contract to construct eleven (11) homes (expires 12/31/99) in Beaumont and to work toward a timely completion of the eleven (11) homes and the six (6) homes previously contracted. (3) Statewide Consolidated Community Development Corporation, Inc. (SCCDC) Request: (1) $83,700 - funds are requested for administrative and operating costs for the HOME Program. Recommendation: Approve in the amount of$83,600. Funding Source: 1999 HOME Program Administrative and Operating Costs. Comments: Funds needed to carry out HOME activities. Request: (2) $60,000 - funds are requested for additional staff for home buyer counseling and for pre-qualifying the processing of permanent mortgages for low to moderate income families. Recommendation-, Approve in the amount of$60,000. Funding Source: Reprogram$60,000 from 1998 Program-CDBG Rental Rehabilitation Multi Family line item. Comments: Similar to Habitat for Humanity line item. Request: (3) $175,000 - funds are requested to acquire and rehabilitate five (5) houses for lease or sale to low to moderate income families. Recommendation: Approve in the amount of$176,386. Funding Source: Reprogram remaining funds from the 1994 and 1996 HOME Programs. Comments: Reprogramming the 1994 and 1996 HOME funds into Acquisition and Rehabilitation will assure the investment of the funds into the Pear Orchard, South Park, and North End Neighborhoods. Request: (4) $280,000 - funds are requested to acquire and rehabilitate eight (8) houses for lease or sale to low to moderate income families. Recommendation: Approve in the amount of$200,000. Funding Source: 1999 HOME Program. Comments: These funds can be invested in the Avenues Neighborhood in the form of Acquisition/Rehabilitation of housing or Reconstruction of housing (estimate seven (7) housing units). Request: (5) $125,550 - funds are requested to acquire and rehabilitate four (4) houses for sale or lease to low to moderate income families. Recommendation: Approve in the amount of$125,400. Funding Source: 1999 HOME Program CHDO Reserve. Comments: These funds can be invested in the Pear Orchard, South Park and North End Neighborhoods in the form of Acquisition and Rehabilitation of single family rental housing or Reconstruction housing. Request: (6) $300,000 - funds are requested to match funds for a private loan to construct thirty(30) scattered site rental units. Recommendation: Reconsider funding this request at a later date subject to loan approval from Sisters of Charity. Funding Source: CDBG or HOME funds. Comments: Encourage leveraging of CDBG and HOME funds. This is a commitment from the prior City Administration. Request: (7) $60,000 - funds are requested for pre-development costs to secure grants and loans from other funding sources (i.e. TDHCA, FHLB). Recommendation: Reconsider at a later date. Funding Source: Reprogrammed CDBG funds or future CDBG allocations. Comments: Encourage leveraging of CDBG and HOME funds by successfully competing for funds from other sources. Request: (8) $330,000-funds are requested to provide home buyer assistance for twelve (12) families who will purchase new construction affordable homes as part of the targeted neighborhoods revitalization program. Recommendation: Approve in the amount of $301,000 for the construction of eleven(11) homes in the Pear Orchard, Avenues and North End Neighborhoods (Old Edwards School Site). Funding Source: 1999 HOME Funds. Comments: Funds are needed for home buyers assistance in the affordable housing new construction program. Request: (9) $330,000-additional funds are requested from CDBG to provide home buyers assistance for twelve(12)more families who will purchase new construction affordable homes as part of the targeted neighborhoods revitalization program. Recommendation: Reconsider at a later date. Funding Source: Reprogrammed CDBG funds or future CDBG allocations. Comments: Anticipate funding this request at a later date following mortgage approvals for additional home buyers and further progress in the new construction program. ReQuest: (10) $126,000-funds are requested to provide home buyers assistance to low to moderate income families purchasing existing housing. Recommendation: Approve funding in the amount of$126,000 for first time home buyers assistance of existing homes. Funding Source: 1999 HOME Funds. Comments: There has been a pent up demand for home buyers assistance for existing homes by low income households who have been unable to qualify for a new home. SCCDC has the staff capabilities to reactivate this program. Request: (11) $126,000-additional funds are requested from CDBG to provide home buyers assistance to low to moderate income families purchasing existing housing. Recommendation: Reconsider funding at a later date. Funding Source: CDBG or HOME. Comments: See Request 10. Request: (12) $110,000 - funds are requested for site acquisition, clearance and preparation for fifteen (15) to twenty(20) lots for the new construction program. Recommendation: Reconsider funding request at a future date. Allow time for SCCDC to build out of existing inventory of lots. Comments: The City of Beaumont will continue to acquire vacant lots in older neighborhoods targeted for revitilization. Request: (13) $20,000-funds are requested to pay the Certified Public Accountants' annual audit fee. Recommendation: Approve in the amount of$18,000. Funding Source: Reprogram CDBG funds from CDBG Rental Rehabilitation Multi Family 1997 ($10,000) and 1998 ($8,000) respectively. Comments: City has committed to pay audit fees for required audits in previous contracts. Funding of this request assures public accountability. (4) Housing Opportunities of Texas, Inc. (HOT) Request: (1) $250,000-funds are requested to provide home buyers assistance for the purchase of approximately ten (10) existing homes by low to moderate income families. Request: (2) $ 37,500-funds are requested to cover personnel costs and oversight of a Home buyers Assistance Program. Request: (3) $250,000-funds are requested to purchase and rehabilitate homes for rent or sale to low to moderate income families. Request: (4) $150,000- additional funds are requested to acquire and rehabilitate homes for rent or sale to low and moderate income families. Recommendation: Obtain additional information from this organization through the CHDO certification process. Do not approve this funding request, as it would crowd out investment in our existing CHDO's who have demonstrated their capacity to carry out HOME Program activities. Funding Source: CDBG or HOME funds. Comments: Housing Opportunities of Texas, Inc. (HOT)is requesting a total of$687,500. We have had no previous experience with this organization. We have requested additional information to determine their organizational structure, their legal status, financial status, capacity to carry out activities assisted with HOME funds and relationships with for-profit entities. This information must be received from a non-profit before it may be certified as a Community Housing Development Organization (CHDO).