HomeMy WebLinkAboutMIN OCT 06 1998 M I N U T E S - CITY OF BEAUMONT
Lulu L.smith DAVID W. MOORE, MAYOR Bobbie J. Patterson, Mayor Pro Tem
Guy N.Goodson CITY COUNCIL MEETING Andrew P.Cokinos
John K. Davis OCTOBER 6,1998 Becky Ames
Lane Nichols,City Attorney Ray A. Riley,City Manager City Clerk
The City Council of the City of Beaumont, Texas, met in a regular session on October 6, 1998, 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
Mayor Moore called the meeting to order at 1:33 p.m. The Reverend Jeffrey Pitman, Associate
Pastor of New Life Tabernacle, gave the invocation. Human Resources Director Glenda Lundy led
the pledge of allegiance.
Present at the meeting were: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith,
Goodson, Cokinos, Ames, and Davis. Also present were Ray A Riley, City Manager; Lane
Nichols, City Attorney; and Barbara Liming, Deputy City Clerk.
*Presentations and Recognitions
Five proclamations were issued: uMental Illness Awareness Week," October 4-10, 1998;
"Psychology Appreciation Week," October 5-11, 1998; a proclamation in recognition of UIHS
Home Care" in Beaumont; "Fire Prevention Week," October 4-10, 1998; and "Respiratory Care
Week," October 4-10, 1998.
*Public Comment: Persons may speak on scheduled agenda items. No one wished to comment
on the Consent Agenda or Main Agenda Items 2 through 4.
*Consent Agenda
The following consent agenda items were considered:
* Approval of the minutes of the regular meeting held September 29, 1998;
* Confirmation of committee appointments - No appointments made.
A) Approve an agreement for software support for the A. L. Roark software system used by the
Fire and Police Departments (effective October 1, 1998, through September 30, 1999, for
a payment of$57,400) - Resolution No. 98-278
Councilmember Cokinos moved to approve the Consent Agenda. Mayor Pro Tem
Patterson seconded the motion. MOTION PASSED.
Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith,
Goodson, Cokinos, Ames and Davis
Noes: None
GENERAL BUSINESS
1. Consider a request for a specific use permit to allow a wholesale durable goods business
in a GC-MD (General Commercial Multiple Family Dwelling) District at 3140 South Eleventh
Street
Mayor Pro Tem Patterson moved to approve Ordinance No. 98-64 ENTITLED AN ORDINANCE
GRANTING A SPECIFIC USE PERMIT TO ALLOW A WHOLESALE DURABLE GOODS BUSINESS IN A GC-
MD (GENERAL COMMERCIAL -MULTIPLE FAMILY DWELLING) DISTRICT LOCATED AT 3140 SOUTH
ELEVENTH STREET, IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS at the request of
Priority Wire and Cable, Inc. Councilmember Cokinos seconded the motion. MOTION
PASSED.
Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith,
Goodson, Cokinos, Ames and Davis
Noes: None
2. Consider repealing Chapter 29, Article IV (titled Wreckers) and Sections 26-40 and 26-41
of the Code of Ordinances and adopting a new ordinance regulating tow trucks and tow
truck companies
Councilmember Davis moved to approve Ordinance No. 98-65 ENTITLED AN ORDINANCE
ADOPTING TOW TRUCK AND TOWING COMPANY REGULATIONS AND STANDARDS; PROVIDING FOR
SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. Councilmember Cokinos
seconded the motion. MOTION PASSED.
Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith,
Goodson, Cokinos, Ames, and Davis
Noes: None
Minutes;1066;Page 2
3. Consider approving a contract with NYLCare Health Plans of the Gulf Coast, Inc. for a
Health Maintenance Organization program
At the request of Councilmember Cokinos, Item No. 3 was deferred for one week to
provide additional information for him.
4. Consider approving an annual contract to provide asphaltic concrete used by the Street and
Drainage Division/Public Works
Councilmember Smith moved to Resolution No. 98-279 authorizing a contract with APAC-
Texas to provide asphaltic concrete which is used for street repairs for an estimated annual
expenditure of$99,060 (Hot Mix/Hot Laid at $23.75/T, FOB Vendor's Plant and $26.25/T,
FOB Jobsite; Hot Mix/Cold Laid at $25.781T, FOB Vendor's Plant and $28.28/T FOB
Jobsite). Councilmember Ames seconded the motion. MOTION PASSED.
Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith,
Goodson, Cokinos, Ames, and Davis
Noes: None
OTHER BUSINESS
*Refunding of Water Revenue Bonds
Mr. Riley introduced Mr. Frank Ildebrando of Dain Rauscher to explain a window of
opportunity that is available and may allow the City of Beaumont to reduce interest expense.
Mr. Ildebrando briefed Council about refunding some outstanding Water and Sewer
Revenue Bonds as outlined in Exhibit"A." Mr. Ildebrando stated there is opportunity to save
approximately$140,000 to $150,000 per year, or a reduction in debt service payments for
the next four years, on the combined refunding. He said that interest rates are astoundingly
low and at an optimum time to take advantage of refunding.
Mr. Ildebrando reported that the bonds can be sold on November 3, 1998, and delivered on
November 30, 1998. They will return to Council for approval of an official statement to
proceed with the transaction.
*Extending operating hours for Beaumont Municipal Transit
Minutes;10161%;Page 3
Director of Public Works Tom Warner presented to Council a proposal for extended
operating hours for bus service. He said the service would be extended from 6:30 p.m. to
9:30 p.m. and from five to six days per week.
Mr. Warner detailed changes that would be made including the number of routes, operating
hours, transfer stations, added employees, financing, grants and anticipated revenues as
outlined in Exhibit "B."
In addition, Mr. Warner discussed an advertising tool introduced by a company that is
known as a bus wrap, which is basically a film that is placed over the bus. The company
comes to the city and sells the advertising. The City of Beaumont would be responsible for
submitting their choice of potential customers. The City of Lubbock receives $1,000 per
month, per bus for the advertising. The bus serves as a rolling billboard for the advertiser.
Mr. Warner said this would be a good opportunity to increase revenue to pay for the City's
portion of the expense. He explained that the wraps do not damage the bus and
passengers can see out of the windows. A sample is shown in Exhibit "C."
Mayor Moore expressed a desire that certain restrictions be placed on the types of
advertising that could be used on the wraps, if that becomes a viable option. Mr. Warner
said that political, tobacco and alcoholic beverage advertising would be banned.
Mayor Moore thanked the City Manager and staff for bringing back this opportunity for
additional transportation for the community.
COMMENTS
* Councilmembers comment on various matters
Councilmember Davis thanked the Police Department for doing an outstanding job in
handling a problem in north Beaumont last week and said the residents feel safer. He
complimented Mr. John Labrie and the Clean Community Department for a job well done
in the neighborhood cleanup effort and reported a problem with tall grass on Irving Street.
Mayor Pro Tem Patterson thanked Mr. Johnny Beatty for his assistance with the Community
Development Block Grant Program and all members of the CDAC for their hard work this
year. Mayor Pro Tem Patterson welcomed the National Community Development
Association Region 6 Conference to Beaumont. On behalf of the president for the Pear
Orchard Neighborhood Association, she announced that they will not hold their meeting this
Thursday. It has been rescheduled for October 15, at 7:00 p.m.
Councilmember Cokinos congratulated Mr. Pierre for the honor bestowed upon him by the
Beaumont Municipal Transit System. Mr. Pierre drove over a million miles without an
Minutes;I Offs 8;Page 4
accident during his 32 years of tenure. Councilmember Cokinos said this is a credit to the
Transit System.
Councilmember Goodson said that hopefully the weather will be better this weekend for the
Naval Squadron to make a port visit. He announced that they will be here from Thursday
throughout the weekend.
Mayor Moore asked Maurine Gray to give an update on the ships' visit.
Ms. Gray said the ships will arrive Thursday and be open for public tours. Besides the
historic occasion of a whole squadron visiting Beaumont, a Change-of-Command Ceremony
will be held Saturday at 10:00 a.m. for the USS Pelican. She said the Fire Department Band
and the West Brook Naval ROTC will be participating, and the Admiral that is over all of the
Mine Warfare Command for the U. S. Navy will be present, as well as the commodore of the
fleet.
Mayor Moore said this has been an interesting week, and that last night at Lamar's 75th
anniversary celebration, former Israeli Prime Minister Shimon Peres did an outstanding job
as their speaker, and said it was a great evening for Beaumont. He said that Mr. Peres
spoke about peace, and his closing statement about the power and dynamics of our
Constitution was very powerful. Mayor Moore congratulated the Ozen Panthers on their first
win (Mayor Moore's son plays on the football team). Also, he congratulated the individuals
who are putting together the Women of Destiny scholarship program to be held October
31 st at the Civic Center. He said it will be a day of workshops and a display of positive gifts.
Mayor Moore referred to the Public Safety Forum held last year and said another is planned
for this year on October, but he would like the time changed to include school children.
Mayor Moore expressed concern for the safety of children, including high school students,
in their travel to and from school. He said there are activities occurring that the Police
Department is addressing, and the community needs to assist in snuffing them out before
a tragedy occurs. Mayor Moore said the City needs to spearhead the effort and solicit the
assistance of the Beaumont Independent School District and parents.
*Public Comment (Persons are limited to 3 minutes)
A gentleman (Mr. Allen Burch, 4610 Barton Lane) referred to his prior visit to Council on
September 15, to complain of raw sewage overflowing from a manhole and running down
the curb on Edson Drive. Mr. Burch said the problem remains even though personnel from
the City have surveyed the situation. He complained of the raw sewage being bad,
unhealthy and illegal. Mayor Moore asked Staff to immediately investigate this problem
and get back to him with a remedy. Mr. Burch also inquired about funds borrowed from the
Water Fund several years ago being repaid, and Mr. Riley affirmed they were.
Minutes;106!98;Page 5
Councilmember Goodson confirmed the location of the sewage problem being in the general
area of Delaware and Coffey. Mr. Burch said the specific location is 2165 Edson.
For general information, Mr. Riley reported that the most severe number of breaks ever
experienced in the water system happened this summer during the drought. He said the
same reports heard from Mr. Burch have been received from other residents in the area and
the problem is the result of the drought. He explained that severe infiltration is now in place
because of what has happened to sanitary sewer lines, and it becomes more obvious and
magnified when heavy rains occur. Mr. Riley said these problems are being addressed and
a determination being made regarding recovery of some of the major lines.
Mr. Archie Land, 435 Langham Road, reported to Council that the Stand Down for the
Homeless" conducted last Friday at the Civic Center was most successful. He said that
almost every agency in Beaumont was there to serve the homeless and registration far
exceeded their expectations. Mr. Land said 156 people registered to receive the services
offered. He thanked Barbara Otto, Mayor Moore's secretary, Mayor Moore, and
Congressman Lampson for tremendous help with the "Stand Down." Mr. Land said there
were doctors, social workers, drug abuse counselors, and many others at the "Stand Down"
to assist the clients. Mayor Moore added appreciation to the Health Department for their
services and to Council for supporting the day to help those in need. Mayor Moore shared
that he has already been made aware of success stories of individuals getting jobs because
of the program activities. Mr. Land also expressed his appreciation to Public Health Director
Ingrid Holmes and Senior Health Educator Martha Simien of the Health Department for
aiding and supporting the "Stand Down.n
EXECUTIVE SESSION
*Executive Session in accordance with Section 551.071 of the Government Code to discuss
contemplated or pending litigation:
Tim Baker and Silvia Baker and Baker Auto Repair, Inc. v. City of Beaumont and the
Zoning Board of Adjustment - Posted, but not considered.
*Executive Session in accordance with Section 551.074 of the Government Code to
consider the evaluation of appointed officials: specifically the City Attorney and City
Manager
There being no further business, the meeting recessed at 2:50 p.m. to reconvene in executive
session.
Minutes;106M;Page 6
Mayor David W. Moore
Barbara Liming, Deputy Cit Clerk
Minutes;10/6/98;Page 7
City of Beaumont
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801 Main St.. 320 Phone:
of Beaumont PP.O.Box 8y7X o0 704 Fax:(409)88&3129 89
Memrwz1wn
To: Ray A. Riley, City Manager
From: Beverly P. Hodges, Finance Officer)/,f
Date: Monday, September 28, 1998
.Subject: Water Revenue Bonds-Refunding
Since the City issued Certificates of Obligation for general purposes last Spring, staff
has worked with Frank Ildebrando, of Dain Rauscher, to evaluate the benefits of refunding
certain outstanding Water Revenue Bonds.The two issues under review are Series 1989 and
1992.
The Series 1989 issue provided$4M in water system improvements and advance
refunded the Series 1983 issue.The Series 1992 issue consists of the bonds drawn through the
Texas Water Development Board and have never been refunded.The two refundings are being
combined in order to reduce issuance costs and related expenses.
Since the Series 1989 have been advance refunded previously, we are limited to a
"forward" call on the original call date of September 1, 1999. Referred to as a"Forward
Refunding" it is used when market conditions are such that the cost to issue are offset by the
favorable market conditions which exist more than 90 days preceding the call date. A forward
refunding serves as an agreement to issue bonds and will allow the City to establish interest
rates in today's market and not take delivery of the securities until June 1999. The City will be
able to take advantage of the current market which is posting historic all-time low interest
rates which may not be available next year.
The 1992 Junior Lien Revenue Bonds were issued in various installments from 1992 to
1998 at an interest rate of 5.50°/x. The proposed advance refunding will result in a reduction in
the City's Water Fund debt service interest costs. The bonds are scheduled to be issued on
November 3, 1998 with delivery of the securities on December 8, 1998.
Due to the complexity of these issues and the rarity of a"Forward" transaction, it has
been determined that a negotiated sale will serve the interests of the City best. Request for
proposals have been sent to the underwriters listed below. All four firms will participate in the
refunding issues.
Firm Representative
Estrada Hinojosa &Co., Inc. U.S.Williams
First Southwest Company Drew K. Masterson
Morgan Keegan&Co., Inc. Mark C. Nitcholas
Paine Webber Incorporated Craig Brast
EXHIBIT "A"
Estrada Hinojosa& Co., Inc. will represent the minority participant in the sale. The
other three firms were invited to propose as they are the firms who approached the City with
independent analysis' reflecting that the refunding would provide a reduction in interest costs.
The combined refundings will total approximately $30.1 million and will result in a
reduction of debt service interest expense in the Water Fund of approximately$200,000-250,000
per year for the next four years. Mr.Frank Ildebrando will present the proposed issuance in
more detail at the Council Workshop on Tuesday, October 6, 1998.
The proposed schedule of events is outlined below.
Tuesday, October 6, 1998 Council reviews Refunding and Schedule of Events
Tuesday, October 20, 1998 Council approves Preliminary Official Statement
Tuesday, November 3, 1998 Council adopts Order authorizing the issuance of the
bonds
`Puesd` , eee�rtl3er�,-1998 Delivery of Bonds
NbAal)er 30, 19%
page 2
CITY OF BEAUMONT
...... PUBLIC WORKS
EL
INTEROFFICE MEMORANDUM
September 29, 1998
TO: Ray Riley, City Manager
FROM: Tom Warner, Director of Public Works
SUBJECT: BEAUMONT MUNICIPAL TRANSIT —
EXTENDED OPERATING HOURS
COMMENTS
The proposed Fiscal Year 1999 Budget included funds to extend the operating hours one day
per week of the Beaumont Municipal Transit (BMT) System. During the budget process,
City Council requested Public Works to develop a plan to provide extended operating hours
six days a week.
BMT currently runs eleven buses on nine routes, Monday through Friday, with a thirty
minute headway on eight routes and a forty-five minute headway on one route. On
Saturday, BMT runs nine buses on the nine routes with a headway of forty-five minutes on
eight routes and a one hour headway on one route. The headway is defined as the time
between buses at a particular stop. The operating hours of BMT are Monday through
Saturday from 6:00 a.m. to 6:30 p.m. Although the buses are on the street until 6:30 p.m.,
the last time a passenger has an opportunity to transfer to other routes at the Dannebaum
Station is 5:30 p.m.
The proposed schedule will extend the operating hours to 9:30 p.m. with the last line up at
Dannebaum Station occurring at 8:30 p.m. The number of buses and headways on each
route will remain as they currently are for each day. This time extension will require the
hiring of six(6) full time drivers and one(1) mechanic. The additional mechanic is needed
to extend the maintenance shifts so that the fleet may be serviced after 9:30 p.m.
The estimated cost to extend full service until 9:30 p.m. is $350,000. It is anticipated that
fare box revenue will be approximately $30,000 with the remaining $320,000 split between
the Federal Transportation Administration and the City of Beaumont. Staff is in the process
of preparing the Fiscal Year 1999 transit grant. This grant application will include the
proposal to extend service hours and the anticipated cost.
Information regarding extended service was presented to the Transit Advisory Committee
and they strongly endorsed the proposal. During the October 6, 1998, City Council
meeting, Public Works will discuss the proposal to extend service hours for Beaumont
Municipal Transit.
Q,&m— -f.
Tom Warner EXHIBIT "B"
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