HomeMy WebLinkAboutMIN MAR 21 1995 REGULAR SESSION
CITY COUNCIL- CITY OF BEAUMONT
HELD MARCH 21, 1995 - 1:30 P.M.
BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in regular session
this the 21 st day of March, 1995, with the following present:
HONORABLE: David W. Moore Mayor
John K. Davis Mayor Pro Tem
Councilman,Ward III
Andrew P. Cokinos Councilman-At-Large
Becky Ames Councilman-At-Large
Lulu L. Smith Councilman,Ward I
Guy N. Goodson Councilman,Ward H
Calvin Williams Councilman,Ward IV
Ray A. Riley City Manager
Lane Nichols City Attorney
Barbara Liming Deputy City Clerk
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The Invocation was given by the Reverend Sandy Sandlin, First Baptist Church.
The Pledge of Allegiance was led by Mr. Ben Hansen, Editor of the Beaumont Enterprise.
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The Reverend Sandlin present Council with tickets to First Baptist's annual Passion Plav to be presented
April 13-15, 1995 and Mayor Moore invited citizen attendance at one of the performances.
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00 Proclamation was issued: "Doing Time for Kids Day," March 23, 1995 (a fundraiser for the
Beaumont Police Activities League--PAL to benefit children and combat juvenile crime in the Tri-plex
area).
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Citizen comment was invited on the Consent Agenda and Main Agenda. No one wished to address these
subjects.
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The following Consent Agenda items were considered:
Approval of the Minutes of the regular City Council session held March 7, 1995;
Resolution No. 95-90 authorizing renewal of the Emergency Medical Services Contract with Jefferson
County Emergency Services District No. 1 for a one-year period commencing April 1, 1995 and ending
March 31, 1996 for payment in the amount of$4,027.50;
Resolution No. 95-91 authorizing payment to Mr. and Mrs. Robert Rausch, displaced due to the
improvements to West Lucas Drive from Phelan Boulevard to Delaware Street, in the amount of
$4,202.00 and a fixed moving expense payment of$850.00 for a total not to exceed $5,050.00;
Resolution No.95-92 authorizing settlement of the Claim of Donald Segura in the amount of$4,000.00;
and
Resolution No. 95-93 authorizing settlement of the Claim of L.E.Johnson in the amount of$8,450.00.
The Consent Agenda was approved on a motion made by Councilman Cokinos and seconded by
Councilman Smith.
Question: Ayes: All Nayes: None
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Resolution No. 95-94 authorizing execution of a one (1) year contract with the Southeast Texas
Development Corporation, Inc. in the amount of $398,000.00 ($359,000 to fund acquisition and
renovation for up to ten(10)homes, $39,000 for the estimated annual administrative budget) to continue
the Housing Acquisition/Renovation Program,using funds from the 1994 HOME Grant was approved
on a motion made by Councilman Smith and seconded by Councilman Goodson.
Question: Ayes: All Nayes: None
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Resolution No. 95-95 authorizing a contract with Excavators and Constructors, Inc. in the amount
of$5,541,628.00 for construction of the Liberty-Laurel Phase H Project designed to improve access
from the west end of the City to the downtown area and improve drainage from the High School Ditch
Drainage Project was approved on a motion made by Councilman Cokinos and seconded by Councilman
Ames.
Question: Ayes: All Nayes: None
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Resolution No. 95-96 authorizing the publication of notice of intention to issue $6,000,000 in
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Certificates of Obligation with proceeds to be used for the Liberty-Laurel Phase H and III projects
was considered.
Mr. Riley explained that Item 3 is a continuation of the Capital Improvements Program to fund the
Liberty-Laurel project, said bonds are not issued in advance in order not to have idle funds on hand, said
that Mr. Frank Ildebrando of Rauscher Pierce Refsnes, Inc. will serve as financial advisor and Mr. John
Creighton of Orgain, Bell& Tucker will serve as bond council.
Councilman Cokinos asked for a total amount of outstanding Certificates of Obligation, asked if the
outstanding amount is considerable and what are the limits and saturation level.
The City Manager replied that Certificates of Obligation are the same as General Obligation Bonds and
the total debt requirement, including principle and interest, is about $121 million with about $70 million
in principle--$10 million in Certificates, the remainder being General Obligation Bonds. Mr. Riley said
the City's outstanding amount is not excessive and the limits are about 30% of our total assessed valuation
of the community, and we're probably at a third of what we're authorized to issue. He reported that
Beaumont's current debt service is right at $10.1 million and is being satisfied through the issuance of
about 31.5 cents of our General Obligation debt. Mr. Riley said he anticipates over the next five years
a three to five cent maximum increase and does not anticipate anything higher because of declining debt
that will begin to occur in about the year 2005.
Councilman Smith asked if the three cents would cover the whole authorized $10 million and Mr. Riley
said that an additional two cents would be needed for the full $10 million.
Mayor Pro Tem Davis asked that "when the City issues the $6 million in Certificates of Obligation, what
is the role and the job of the financial advisor and the bond counsel?"
Mr. Riley said the bond council must certify and assure that all requirements of the law are met in regard
to the City and anybody purchasing bonds, and the bond advisor actually prepares the necessary
documents.
Mayor Pro Tem Davis inquired as to the length of service of Orgain, Bell& Tucker as bond counsel, and
Mr. Riley said they have served at least fifteen years.
Mayor Pro Tem Davis said he has no problem with Orgain, Bell& Tucker, but asked if it is possible for
another firm to join in some capacity with them. The City Manager said not as financial counsel, and that
most communities have a long-standing relationship with their bond counsel because only certain firms
have the knowledge or ability to do this work and are better served by retaining the bond counsel that is
aware of individual city's product.
Mayor Pro Tem Davis said his "question is, is it possible in some capacity for another firm to join in with
Orgain, Bell& Tucker as our bond counsel in some capacity?"
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The City Manager said in his opinion, they could not, but Council could consult with the City Attorney
who serves in the capacity as legal advisor. He added that probably there is no prohibition, but another
firm probably could not bring anything to the table to participate in the fee received by the bond counsel.
City Attorney Lane Nichols said the bond counsel could utilize the assistance of another lawyer to do
some of the functions such as researching City Council Minutes or formulating questionnaires. He stated
that anytime work is done by the hour, someone could be hired to do a portion of the work. However,
he said the size of this job and the number of hours involved wouldn't lend itself to too much subdivision
between firms, and the people who are retained would have to have some expertise in this area. In order
to be acceptable to the investment community, he said the firm has to be in a recognized bond counsel
book because their opinion that these are tax-free obligations of the City and the State of Texas is crucial
to the sale and interest rate the City would receive. Mr. Nichols said it is possible to hire or use another
firm for some of the hours, but it wouldn't be significant.
Mayor Pro Tem Davis said "the reason that I, I brought this issue is because I think it is somewhat
important for me that we try to, if we can, have an opportunity to get minority law firms involved, and
this would seem to be one of the good opportunities, if they fit all those criteria and they meet the
qualifications, and that was why I was asking. I have talked to some law firms about Certificates of
Obligations, and they're not necessarily not going to be interested in this, but it is also a way that we can
bring more people involved into this process, and that is my point. I think, if we can in some kind of
capacity, as we've done with our CPA's, bring on a MBE so that we can make sure that all share in some
of the benefit."
City Attorney Nichols said this is an excellent idea, told Council that if those kinds of requests are
forwarded to him, he will get with Mr. Creighton to determine if a fit and mix can be found.
Resolution No. 95-96 was approved on a motion made by made by Councilman Ames and seconded by
Mayor Pro Tem Davis.
Question: Ayes: All Nayes: None
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Mr. Tony Jones, 508 Garland, addressed Council to ask that financing for widening of Old Dowlen Road
be considered because of the construction of a new Super Walmart in the near future, asked that Council
consider extended bus service to'the new Super Walmart when it opens, said he saw Mayor Moore on C-
Span television while he was attending the National League of Cities meeting in Washington, D.C. and
was impressed with the Mayor. reminded Council that the transfer point downtown needs to be named
after Henry Dannenbaum and said there is a bill before the Human Resources Committee in Austin to
strengthen guide-dog laws in the State of Texas and increase fines for violators. Mayor Moore told Mr.
Jones that many of the issues he raised are presently being worked on.
Mr. Glen Hunt, 7375 Willis Lane, addressed Council to complain about an oil-drilling operation
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(Anadarko Petroleum Corp. of Houston)in northwest Beaumont that upsets nearby residents. Mr. Hunt
requested that Council consider taking all steps necessary to control and regulate urbanized oil drilling,
production and storage facilities by adding to ordinance regulations a greater minimum distance between
their operations and inhabited structures, restriction of operating hours, noise regulations that effectively
control all noise from the site, regulate fumes and emissions and excessive vibrations due to, but not
limited to, hydro-testing. Mr. Hunt distributed copies of a survey of 45 households for Council to review
and said that for the past three months, this has been a 24-hour, seven-day-a-week, 70 plus decibel, oil-
spewing monster in his neighborhood.
Mrs. Pearl Hebert, 7785 Easley Drive, a recent heart attack victim, substantiated Mr. Hunt's complaints,
said she used to live in a quiet neighborhood, but now the noise is terrible, the fumes awful and she has
been awakened with shaking caused by testing and requested Council assistance.
Mr. James Hebert, 7785 Easley Drive, supported the complaints about the oil-drilling operation and
added that he thinks the stress caused by all these activities contributed to his wife experiencing a heart
attack.
Ms. Mable Daigle, 7825 Easley Drive,resident of a mobile home park next to the oil-drilling site, said she
is representing other residents of the mobile home park that could not attend Council, as well as herself,
said the drilling activities are a health hazard to children and the elderly and asked that Council enact
regulations that will keep these activities from happening to residential neighborhoods.
Ms. Schieketha Eaglin, 3220 Christopher, addressed Council in support of the citizens complaining about
oil-drilling operations and paralleled their complaint to the problems caused by seismographic testing in
her neighborhood.
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Councilman Goodson said it is good to be back in Beaumont after a visit to West Texas last week.
Councilman Smith reported that the National League of Cities meeting held last week was probably the
most interesting and the most frustrating she has attended during the past eight years. She said she was
disappointed in both political parties and that she does not feel Congress is willing to make the changes
and sacrifices that need to be made. In speeches from the President and the Speaker of the House, she
did not hear much about deficit reduction, saw a lot of posturing from both sides of the House that was
very disconcerting. Councilman Smith said the cut in the school lunch program is actually .2% of the
increase in the program. She said they are not cutting the program, but cutting the increase. Instead of
increasing it each year by 4.6% for the next five years, they will increase the program 4.4% each year.
She said "there's not much truth in what anyone says around there." She said she thinks cities will "not
come out of this very well," that funding will probably go to the State through Block Grant and she
doesn't know how we will fare there. To her, this says "we're going to have to learn how to solve our
problems on a local level with a partnership between the public and private sectors." Councilman Smith
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said she thought the most interesting and informative sessions were those in which Senator Kerry of
Nebraska and Senator Gregg from New Hampshire spoke about entitlements, the deficit and where we're
going if we do not get a "handle on our entitlement spending." She said they were more honest and real
in approaching what needs to be done. She said she didn't come away with a feeling that an awful lot was
going to be done to help the deficit.
Mayor Pro Tem Davis said he also attended the National League of Cities meetings in Washington, D.C.
for the first time, and it was definitely inspiring. He said he was disappointed in the level of discussion,
or the lack of substantive discussion, about issues. He said it was interesting that each political party can
look at the same issue, approach it in a different perspective and then see no common ground whatsoever
and that is disappointing. He said that in the future cities will be confronted with problems not
experienced before; he thinks unfunded mandate action is a plus, but saw no other real pluses from that
meeting.
Councilman Ames remarked that this also was her first attendance at a National League of Cities meeting,
said it was a rude awakening and very different, but she learned a tremendous amount and now
understands why these meetings are important. She said she learned a lot about city, state and federal
government and how it comes together. Councilman Ames agrees with Councilman Smith's remarks, but
came back as an optimist because it was so exciting to be there and be a part of the grassroots level
decision making. Also, Councilman Ames congratulated the Beaumont Regional Medical Center for the
groundbreaking of its new Professional Tower this morning. She said it will be a wonderful facility that
all citizens can be proud of, a lot of good things will be created for our community by its construction, said
the developer reported that Beaumont Regional said all Beaumont contractors and sub-contractors will
be used in constructing the structure.
Mayor Moore confirmed that the groundbreaking at Beaumont Regional was exciting and began his
comments by complimenting all members of Council who maintained busy schedules while four members
were in Washington D.C. and thanked them for keeping appointments and activities. Also, he thanked
those who went to the National League of Cities meeting, attended new member orientations and various
workshops that began early in the day and lasted late into the evening. He said there was a lot of
discussion to hear on both sides of issues to discern the real truth, and as a community there will be a
number of things to work together on to be successful. Mayor Moore said probably the brightest point
of all discussion was about the lunch program where they learned that the program is not being cut in its
entirety, only increases are being cut. He said that Council was able to hear discussions and meet with
the President, Speaker of the House, the Interior Parks Director Sam Hall, Senator Kay Bailey
Hutchinson, Senator Phil Gram, and Congressman Steve Stockman with all the same questions and the
conversation being similar in some respects and totally different in others, but said cities will not be able
to do business as usual in handling grants, and now is the time for public and private partnerships to be
put together. He said he is invited to the White House tomorrow, but will not be attending, for signing
of the unfunded mandates bill. He said many things are not addressed that we already have to handle and
said the City Manager spoke very well to that in a recent newspaper article. He said the federal
government is trying to pass the burden to local governments to force a balanced budget by making sure
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that local spending does not exceed revenues, said they are telling us now that there are a number of things
we will not receive in the future and others we will have to maintain. He said a lot of activity is going on
with record numbers of bills being proposed and passed in Congress, then sent to the Senate for review.
He said this equates to a lot of eye-opening, particularly for those who attended the NLC meetings, but
said it was an extremely productive meeting in terms of information.
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There being no other business,the regular session of City Council was recessed to reconvene in workshop
session.
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I, 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 March 21, 1995.
Barbara Liming
Deputy City Clerk
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