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HomeMy WebLinkAboutMIN APRIL 2 1996 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT CIVIC CENTER HELD APRIL 2, 1996 - 1 :30 P.M. BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in regular session this the 2nd day of April, 1996, with the following present: HONORABLE: David W. Moore Mayor Becky Ames Mayor Pro Tern Councilman-At-Large Andrew P. Cokinos Councilman-At Large Lulu L. Smith Councilman, Ward I Guy N. Goodson Councilman, Ward II John K. Davis Councilman, Ward III Bobbie Patterson Councilman, Ward IV Ray A. Riley City Manager Lane Nichols City Attorney Barbara Liming Deputy City Clerk -000- The Invocation was given by Ms. Patricia Pugh, a citizen attending Council. The Pledge of Allegiance was led by Mayor Pro Tem Ames. -000- Citizen comment was invited on the Consent and Main Agendas. Mr. Allen Lee, 5095 Maddox, addressed Council in a hostile and accusatory manner to question their knowledge of parks within the city, the number of parks without restroom facilities and spoke in opposition to Agenda Item 2 endorsing the Texas Department of Transportation - Intermodal Surface Transportation Efficiency Act (ISTEA) grant application for construction of a hike and bike trail to connect Riverfront Park with Collier's Ferry Park, saying it is an injustice to use matching funds for this project when some parks do not have public restrooms. Several times Mr. Lee was instructed to continue with his comments and reminded of the time limit. 107 April 2, 1996 Ms. Patricia Pugh, 1317 Maple, quoted Proverbs 29:2 concerning righteousness people in authority, Proverbs 15:1 saying that "a soft answer turneth away wrath...," and said that God put leaders into authority and should be addressed in a proper way. Mayor Moore told Ms. Pugh that comments at this time should specifically relate to items on the Consent or Main Agenda, but she may speak on any subject later in the meeting. Ms. Pugh added that a light needs to be installed on Liveoak at Magnolia. Mr. Roberto Flores, 2425 Buchanan, also addressed Council regarding Agenda Item 2 and the application for the ISTEA grant, lack of use of Riverfront Park, asked about use of the grant monies for Highway 90, spoke in support of using the matching funds of the City for Item 2 on neighborhood projects instead of the bike trail, said that using funds for this project "is connecting Riverfront Park to a shady area where many undesirables can just walk over there" and questioned proof that this project would be a tourist attraction "to a static situation." (Mr. Warner explained ISTEA funding criteria and said that funds could be used for Highway 90 for beautification and landscaping.) Mr. Bruce James, 9520 Broun, addressed Council in support of Agenda Item 2, thanked Council for making the project handicap accessible, even though the project cost will be increased. Mr. Houston Weaver, a resident of Lumberton, Texas, addressed Council to support SETLIFE and was instructed that comments to be made at this time are specifically for the Consent and Main Agendas. -000- The following Consent Agenda items were considered: Approval of the Minutes of the City Council meeting held March 26, 1996; Resolution No. 96-74 appointing Tony Albo to the Sister City Commission for a term expiring April 1, 1998; Resolution No. 96-75 authorizing an annual contract for City work uniforms with Shepherd's Uniforms and Linen Supply Company for the estimated amount of$31,049 for approximately 400 employees; and Resolution No. 96-76 accepting donation of a ten foot (10') Water Line Easement and a twenty foot (20') Temporary Construction Easement located at the northwest intersection of Highway 105 and Keith Road, continuing northwardly a distance of 4,189 feet to the north right-of-way line of Perl Road, out of the S. Morris Survey, Abstract 62, from Mr. Tipton L. Golias and Mr. James E. Thorp, the Independent Executors of the Estate of C. W. Brown, Deceased, to allow installation of an eight inch (8") water line and fire hydrant at the Veterans Memorial Park on Keith Road. 108 April 2, 1996 Councilman Davis questioned purchase of work uniforms from someone other than the low bidder. The City Manager explained that the bid difference between the vendors was not significantly low enough to compensate for the time spent for over 400 City hundred employees to go out of town to be fitted for uniforms and said there is not a local collection point. The Consent Agenda was approved on a motion made by Councilman Smith and seconded by Councilman Cokinos. Question: Ayes: All Nayes: None -000- The City Manager introduced Agenda Item No. 1 authorizing Beaumont's participation in the Entergy/GSU Team City community development program and designating Beaumont Main Street as the lead in the effort and invited representatives from Beaumont Main Street and Entergy to make a presentation. Ms. Carolyn Howard, Director of the Beaumont Main Street program, said the "Central Business District is alive and is improving" for several reasons: downtown job creation is way up, maturity of promotional projects, and the number and complexity of calls received regarding business relocations and expansion. She said they are proud to be a part of Entergy's Team City community development program and have developed several task-oriented goals for the next two years, said they will continue to update their marketing efforts in the downtown area and reported that last year, the Texas Downtown Association named Beaumont's recruitment and marketing efforts as the best in the State of Texas. She said they are in an active, aggressive partnership with Entergy and the Chamber of Commerce in back office development and "will continue to facilitate very positive happenings with such facilities as the Jefferson Theatre." She said that since Main Street began in 1992, a net gain of 600 jobs has occurred and a private reinvestment of$5 million has been realized. Ms. Howard introduced Ms. Dolly Johnson and Ms. Carolyn Motl of Entergy. Ms. Johnson thanked the City of Beaumont, Mayor and Councilmembers and Staff that have worked with Main Street and Entergy/GSU to make the Team City program very successful. She said the bottom line goal of the program is to bring more jobs to Beaumont in this partnership with the City, Main Street, the Chamber of Commerce and Entergy/GSU. Plaques were presented to the City of Beaumont and to Beaumont Main Street for successful completion of two years in the Team City program and partnership redesignation. Mayor Moore expressed appreciation for this program and said many citizens have complimented the "Noon Tunes" activities that have been well attended. Resolution No. 96-77 authorizing and endorsing the continued participation in Entergy/GSU's Team City community development program and designating Beaumont Main Street as the lead 109 April 2, 1996 in this effort was approved on a motion made by Councilman Cokinos and seconded by Councilman Goodson. Question: Ayes: All Nayes: None -000- Resolution No. 96-78 endorsing the City of Beaumont's Texas Department of Transportation - Intermodal Surface Transportation Efficiency Act (ISTEA) grant application for construction of a hike and bike trail that would connect Riverfront Park with Collier's Ferry Park, recommending this project for "enhancement funding" by the Texas Department of Transportation, confirming fund utilization and guaranteeing the required 20% match by the City was considered. The City Manager explained that before Riverfront Park, there was no public access to the Neches River except at the end of Pine Street which is now the proposed Collier's Ferry Park that will be under construction soon. He said that with the donation of 1,200 acres southeast of Collier's Ferry Park, the City now owns property from IH-10 to the end of Pine Street. With review of the area, he said a great deal of history has revealed potential tourist attraction. Mr. Riley said that before the turn of the century a large cedar forest was in that location and even now aerial photographs show large cedar stumps thirty (30') feet in diameter and trails can be seen where wench boats went in and the trees wenched back through the forest to a collection point and back out to the Neches River. He said we have something similar to an Everglades Park or the Big Thicket Park and emphasized this as a one-time opportunity to provide access to a 1,200 acre area in which both hiking and bicycle trails can be constructed, be wheel-chair accessible and tie together a tourist attraction and connection of Riverfront and Collier's Ferry Park. He said this opportunity would not be affordable without the ISTEA grant funds that are designated through the Department of Transportation for particular projects. Mr. Riley said we can develop our natural resources, provide a tourist attraction, and enjoy the development on a local level for a 20% fund match. He proposed taking advantage of the application process for this one opportunity to vie for this project and reemphasized there is no guarantee we will definitely receive the grant funds and that these particular monies cannot be used for other park projects because of their proximity to the Interstate or to a major transportation system. Council remarks included reference to previous citizen comments, input from citizens regarding facilities, enhancement of the city in an area that will add ambience and tourism, vicariously assist with community safety problems, a belief in rebuttal that this area is a "shady area" of town, but an area that is trying to take part in making the city better, an opportunity given for citizens to take concerns to the Parks and Recreation Advisory Committee meeting on April 8th, and a statement that this is an opportunity to improve the quality of life for all citizens. Resolution No. 96-78 was approved on a motion made by Councilman Goodson and seconded by Councilman Smith. Question: Ayes: All Nayes: None 110 April 2, 1996 Mayor Moore commented that the City Manager captured perfectly that this is an opportunity for the citizens of Beaumont to get 80% of the dollars needed to improve the community. He said this is "part of the vision that develops cities and part of what has started with other smaller projects that have turned into large activities for our community." He said it is Council's challenge to leverage dollars to the best use for Beaumont. Mayor Moore said other issues are very important, but this is an immediate opportunity to pursue. -000- Resolution No. 96-79 accepting the $321,900 bid of N & T Construction to furnish and install an emergency generator and construct a building to enclose the generator at the Loeb Water Well site located in Lumberton was approved on a motion made by Councilman Smith and seconded by Councilman Davis. Question: Ayes: All Nayes: None -000- Resolution No. 96-80 authorizing purchase of two (2) rubber track Takeuchi Model TB035 mini excavators for use by the Water Utilities Department, Water Distribution and Sewer Maintenance Divisions, for repair and maintenance of sewer lines from Mustang Rental Services in the amount of $38,295 each for a total of $78,590.00 was approved on a motion made by Councilman Goodson and seconded by Councilman Smith. Question: Ayes: All Nayes: None -000- Resolution No. 96-81 authorizing purchase of two (2) New Holland Model 555D tractor loader backhoes for use by the Water Utilities Department, Water Distribution and Sewer Maintenance Divisions, for repair and maintenance of water and sewer lines from Oil City Tractors, Inc. for the unit price of$40,660 each for a total expenditure of$81,320.00 was approved on a motion made by Councilman Cokinos and seconded by Councilman Goodson. Question: Ayes: All Nayes: None -000- As part of the Charter requirement, Finance Officer Beverly Hodges presented the Long-Range Financial Forecast to Council for Fiscal Years 1996-2000. Mrs. Hodges said there is continued financial good news for Beaumont. She distributed copies of the five-year plan, as attached, and highlighted certain areas such as General Revenues that include Sales and Use Tax, Property Taxes, Industrial Payments, Gross Receipts Tax and other revenue items that contribute about 111 April 2, 1996 14% to the fund. She said that for the next five years, the sales tax rate is foreseen to be 1 '/ %, with no changes. She said the largest increase in revenues is in Industrial Payments because of the negotiated contracts that include about a 7% growth rate, and the increase is about $650,000 for the '95P96 year and will continue to grow at that rate for the next five years. Also, Mrs. Hodges spoke about General Fund Expenditures at the current level of operation and employment with about 2 1/2% increase each year and said wages and benefits continue to make up the biggest part of expenditures, as expected, at about 75%. She reported that in the Debt Service Fund, at the level of issuance we're experiencing now with the recent refunding and issuance of Certificates of Obligation, no tax increase is foreseen with that debt service. She said the Fund Balance allows a reduction to about 20% to maintain the present tax rate. In summary, Mrs. Hodges said that in the recent Moody evaluation, the City of Beaumont received an A-1 rating, and indicates the City is in very good financial condition and said that great economical strides throughout all City Departments have been made to achieve this rating. Council discussion, questions and comments to Mrs. Hodges included any diverse effects by the reduction to 20% in the Debt Service Fund, Sales and Use Tax increase expectation dependant upon the economy, the percentage of payroll to the cost of operation, number of civilian and Civil Service employees, federally funded programs that allow additional employment, comparative employee information regarding cities our size, individual percentage of expenditures for Health, Cultural and Recreation and expressions of appreciation for the City's bright financial outlook. Lastly, Mrs. Hodges commented about various reports encouraged by the General Finance Officers Association such as the Comprehensive Annual Report and budget documents and distributed copies of the City of Beaumont, Texas Community Report that has been prepared in more layman- like language to review and analyze Beaumont's financial status and said they will be available to citizens and various organizations such as the Chamber of Commerce and Neighborhood Associations. -000- Mayor Moore announced that an executive session will be held following the regular session of City Council in accordance with Section 551.071 of the Government Code to discuss contemplated or pending litigation: Allen Lee et al v. Rosemarie Smith and the City of Beaumont; Willie Joe Lane v. Jefferson County, et al; and Police K-9 unit overtime claim; and in accordance with Section 551.074 of the Government Code to consider appointment or employment of a public officer or employee: specifically the City Clerk. -000- Councilman Cokinos reported a good Neighbors in the Park celebration at Rogers Park that was well attended and especially enjoyed by the children and complimented the Noon Tunes program being held on Fridays on the Library lawn. 112 April 2, 1996 Councilman Davis said the report received from Kyle Hayes regarding use of City vehicles has helped tremendously, suggested consideration of this item in a workshop, spoke of CDBG activities and said he is concerned with the Sunlight Properties request and asked Council to review their application again, said he thinks it is a worthwhile project and would like to discuss it in Community Development presentations. Mayor Moore congratulated Beaumont citizens and those of Southeast Texas for participation in the March of Dimes Walk that raised about $250,000, the Southwest Geological Society of Lamar University program that drew over 100 students from other universities in Texas, Missouri and Southwest Louisiana and the Top Ladies of Distinction for acknowledging 15 ladies in our community with various honors, of which one was Councilman Bobbie Patterson. Also, Mayor Moore commented that the questions presented to Council are appreciated, said the question of public restroom facilities has been discussed by Council for a while and explained the concept of neighborhood parks close to homes and community parks designed with restroom facilities, said tremendous progress has been made in the parks area, encouraged citizen input regarding new park facilities and solicited assistance in preventing their damage and vandalism. -000- Mr. Raymond Chaisson, 1130 Lamar, again complained to Council about the loading and unloading activities by Modern Manufacturing that excessively block traffic and create a nuisance and danger. Mayor Moore reported that he has visited the area, talked to the owner of the business and said a Public Safety Officer will investigate the problem. Mr. Bruce James, 9520 Broun, told Council that at the ACORN meeting last night, (during Mr. James' comments, Mayor Moore asked Mr. Lee and Mr. Chaisson to go into the hallway to continue their loud conversation) concerns of crime on Gardner, Broun, McLean, Shepherd and Josey were expressed with teenagers slashing tires, said a committee has been formed and will soon meet to discuss a bounty of $50 to $100 being placed on the teens to serve as a neighborhood crime stoppers tool. Mr. James thanked Captain Kelly, Councilman Cokinos and the City Manager for assistance regarding the problem and spoke of having Police Officers patrol the area on bicycles because patrol cars are too conspicuous. Mr. James also addressed the Community Block Grant program and disregard by the CAC of the grant application presented by SETLIFE Resource Center for Independent Living. Mr. James suggested that perhaps the proposal was misread and perceived as already being federally funded and explained that a grant has not been received and is still in the application form. Mr. James submitted letters of recommendation to be presented for reconsideration of the application. Mr. Bob Tegmire, 7390 Pindo, Apartment 117, and Mr. Houston Weaver, 116 Stephens, Lumberton, Texas, also addressed in support of reconsideration of SETLIFE Resource Center for Independent Living grant application for CDBG funding and spoke of advantages of a facility that will teach independent living skills. 113 April 2, 1996 Mr. Buddy Hebert, 295 North Parkway Drive, addressed Council to suggest that sponsoring groups of charity endeavors be required to supply trash containers along their planned route to eliminate litter and debris in neighborhoods. Mr. Roberto Flores, 2425 Buchanan, addressed Council and announced that on April 21 at Fletcher Park from 2:00 p.m. to 5:00 p.m., everyone is invited to celebrate the diversity of the area with a mini review of the Cinco de Mayo celebration that will be held at Riverfront Park on May 4 and 5. He discussed the variety of entertainment by the diverse population, again suggested a park in the area that will capitalize on this diversity and serve as a tourist attraction. Ms. Patricia Pugh, 1370 Maple, apologized for speaking earlier at an inappropriate time and expressed her need and appealed for assistance with employment. She emphasized that she wants to be self sufficient, is educated and qualified, but has been unable to find a permanent job. Mr. Allen Lee, 5095 Maddox, addressed Council regarding alleged Police abuse upon two ladies, advised everyone to take their brutality complaints against the Police Department to the FBI where reports will be filed with the Justice Department, he vowed no confidence in the Police Department and said he is filing a complaint against a detective in Internal Affairs, advised young people going to Tyrrell Park to take cam corders with them, spoke in support of a tax upon people working in Beaumont and living outside the city, claimed Council to be arrogant, playing politics and displaying little leadership, said he is glad they are taking his advice about public restrooms, spoke of tax abatements to bring business into the Charlton Pollard area, widening Irving Street and building 75 homes in the area. He spoke of the American Civil Liberties Union filing briefs in support of his lawsuit against the City of Beaumont. He pledged to file another injunction against building the 75 homes, said it is illegal and supports segregation, expressed his views on where the homes should be built and said the land is polluted in the Charlton Pollard area. Mr. Tony Sacker, 4635 Elmherst, addressed Council with full identification and reviewed his endeavor in 1987 to initiate a tax on those working in Beaumont and living outside the City limits and received indication that it was not possible, discussed the City Street User Fee, spoke of subversive organizations being quoted and the Freedom of Information Act that provided opportunity for him to review the voting record of a 48 year old man who registered to vote in 1992 and refuted some of his claims. Mayor Moore commented that positive direction is intended for the Charlton Pollard neighborhood, said there are no restrictions on who can live there, spoke of the diversity of the community, said this is an endeavor to help a community, no debates will be allowed, spoke of drainage improvements in the west end, Pear Orchard neighborhood and Corley Street and said there is concern for the whole city. 114 Apri12, 1996 There being no further business, the meeting was recessed to reconvene in executive session in the Third Floor Conference Room at City Hall. -000- 1, Barbara Liming, Deputy 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 April 2, 1996. Barbara Liming Deputy City Clerk 115 April 2, 1996 co Beaumont Texas tY F iLong Range Financial Forecast Fiscal Years 1996 � 20®a f .................. .... ...... .` may s F s n �70 211��.-.-4.1 , 5 x .> "ATTACHMENT" City o Ykaumont March 29, 1996 To the Honorable Mayor and Councilmembers LONG RANGE FINANCIAL FORECAST I am pleased to submit the City of Beaumont's five year financial forecast for the fiscal years 1996 through 2000. This forecast is prepared to assess the City's current financial condition and project that position five years into the future utilizing current policies and offering the current level of City services. GENERAL REVENUES General revenues are used to account for resources devoted to financing general services performed by the City for its citizens not accounted for in Special Revenue or Enterprise Funds. All tax revenues and other general sources of revenues used to finance the fundamental operations of the City are included. The forecast of revenues is based on previous years experience and current economic conditions. Maintaining the current sales tax rate of 1.5% and the current property tax rate of $0.615 per $100 valuation, total general revenues including industrial payments, gross receipts taxes and all other miscellaneous revenue sources for FY 1996 will be $66.4M. Total General Revenues 100 80 $66.4M $67.8M $69.3M $70.7M $72.2M c 60 0 M 40 20 0 1996 1997 1998 1999 2000 Fiscal Year ON Sales&Use Tax El Property Taxes IMI Industrial Payments =Gross Receipts Tax INI All Other Honorable Mayor and Councilmembers March 29, 1996 Page 2 The four largest sources of general revenue are Sales and Use Tax, Property Tax, Industrial Payments and Gross Receipts Tax. The following graph shows the proportions for FY 1996. General Revenues by source 33.1%Sales&Use Tax 34.6%Property Taxes 14.2%Other 13.7%Industrial Payments 8.4 0/oGross Receipts Tax Sales and use tax is the largest general revenue source accounting for 33.1% of total receipts or an estimated $22M in FY 1996. This represents an increase of $400,000 or 2% over last year's actual of $21.6M. We expect to sustain a 2% increase for future periods. The second highest general revenue source is property taxes. In FY 1996 property tax receipts represent 30.6% or $20.3M of total resources. The current estimate is comparable to FY 1995 collections. With no change in the current $0.615 per $100 valuation property tax rate proposed during the five years represented in this projection, only the potential for growth in assessed value is included. Based on the trend of past years, property tax revenue is-expected to grow $200,000 or 1% annually to an estimated $20.5M in FY 1997. Fiscal year 1996 industrial payments account for 13.7% of general resources at approximately $9.1M. This represents a 7.7% or $650,000 increase over last fiscal year's collections and is consistent with the growth expected for the second year of the seven year contracts executed in FY 1995. Revenues are projected to rise $790,000 or 8.7% in FY 1997. An average growth of 7.0% annually during the entire projection period is expected. Gross receipts taxes are collected from utility companies operating within the City. They are estimated at $5.6M for FY 1996 accounting for 8.4% of general resources. Based on the current growth rate, revenues are projected to increase $80,000 or 1.5% in FY 1997. Overall, we expect to average a 2.3% growth in general revenues for the five years in this forecast which will be about $1.5M annually. Honorable Mayor and Councilmembers March 29, 1996 Page 3 GENERAL FUND EXPENDITURES The fundamental costs of operating the City are charged to the General Fund. These disbursements provide for Police; Fire; Public Works; Health, Cultural and Recreation; Central Services; and General Government. Expenditures are projected to increase approximately 2.5% or $1.5M annually, from the current fiscal year 1996 estimate of $57.5M to $63.5M in FY 2000. Expenditures by Function FY 1996 Function Budget Police $16,081 21.0%Fire 27.90/6 Police Fire 12,109 Public Works 9,056 Health,Cultural&Rec 8,100 115.8%Public Works 113.59%General Govt Central Services 4,414 g � General Govt 7,779 14.1%Health,Cultural&Rec 7.7%Central Service Total $57,539 The reported increase is related to annual salary adjustments, as no additional positions are anticipated. Approximately 75% of general fund expenditures are for wages and benefits. Expenditures by Category FY 1996 Category Budget 25.5%operations y Wages $32,026 Benefits 10,802 Operations 14,711 55.7/Wages Total $57,539 18.8%Benefits Honorable Mayor and Councilmembers March 29, 1996 Page 4 DEBT SERVICE The Debt Service Fund is used to account for resources received to retire outstanding general obligation debt secured by taxes levied by the City. Existing debt service requirements for FY 1996 total $10M. No increase in the tax rate is anticipated to support the future years debt service requirements through FY 2000. The existing debt service fund balance will be reduced systematically to fund the gap between the taxes levied and the annual debt service requirements while maintaining a reserve equal to 20% of the annual requirement. The FY 1996 fund balance in the Debt Service Fund is $4.7M. The anticipated level of fund balance for FY 2000 is estimated at $3.3M. Debt Service Fund 10,500 10,000 N C 9,500 0 9,000 8,500 1996 1997 1998 1999 2000 Fiscal Year #Property Tax Revenue --Debt Service Requirements Honorable Mayor and Councilmembers March 29, 1996 Page 5 SUMMARY In summary, we anticipate revenues sufficient to fund an annual increase of 2.5% in expenditures for general operations, with no change in the property tax rate. We expect to maintain an acceptable level of fund balance at no less than 10% of revenues for general purposes for the period under review. Current debt service requirements will not require an increase in the tax rate. The anticipated revenues for debt service combined with a systematic reduction of fund balance in the Debt Service Fund will provide adequate resources to fund annual debt service requirements. The following schedule provides an overview of revenues, expenditures and fund balances relative to the General and Debt Service Funds combined. Fiscal Total Expenditures Total Fund Year Revenues General Fund Debt Service Balances 1996 . 66,429,000 57,539,000 9,999,000 12,173,000 1997 67,818,000 58,978,000 9,591,000 11,422,000 1998 69,347,000 60,452,000 9,583,000 10,734,000 1999 70,716,000 61,963,000 9,591,000 9,896,000 2000 72,203,000 63,513,000 9,445,000 9,141,000 Based on current known conditions and historical trend analysis, the forecasts presented are estimates of anticipated activity levels. Reports to Council will be made as needed should future changes occur that significantly impact the City's financial condition. Respectfully submitted, Beverly H d s, Finaqefficer CITY OF E UMONT AS