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HomeMy WebLinkAboutMIN AUG 03 1982 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD AUGUST 3 , 1982 BE IT REMEMBERED that the City Council of the City of Beaumont , Texas , met in regular session this the 3rd day of August , 1982 , with the fol- lowing present : HONORABLE: William E. Neild Mayor Bill Cox Councilman , Ward I Evelyn M. Lord Councilman , Ward II Joseph D. Deshotel Councilman, Ward III Absent : Wayne Turner Councilman , Ward IV Ray Riley City Manager Hugh Earnest Asst . City Manager Kenneth Wall City Attorney Myrtle Corgey City Clerk -000- The Invocation was given by the Reverend William C. Bauer, pastor of the Beaumont International Seamen's Center. The Pledge of Allegiance was led by Councilman Cox. -000- The following Consent Agenda items were considered: Approval of the Minutes of the regular City Council session held July 27, 1982; Resolution 82-.272 authorizing an exchange of $3.0 million in securities pledged as collateral for city bank deposits by Texas Commerce Bank of Beaumont (_total pledged - $54 ,905,000.00) ; Resolution 82-273 authorizing Change Order No. 1 in the amount of $1 ,250. 00 to the Service Center contract with Nash Construction Company Ccontract amount from $2,543 ,000 to $2 ,544,250) ; Resolution 82-274 appointing Ronald Fittz and Charles D. Foxworth to the Building Board of Adjustment and Appeals, terms expiring July 31 , 1986; and Resolution 82-275 authorizing payment of $1 ,771. 83 to Gulf States Utilities Company for installation of three (3) security lights at Guseman Park. The Consent Agenda was approved on a motion made by Councilman Cox and seconded by Councilman Deshotel. Question : Ayes : All Nayes : None -000- Resolution 82-276 awarding a contract for construction of the 1982 Com- munity Development Street Rehabilitation Program to Troy Dodson Construc- tion Company, in the amount of $463 ,000.00 was approved on a motion made by Councilman Deshotel and seconded by Councilman Cox. Question : Ayes : All Nayes : None -000- Resolution 82-277 awarding a contract for construction of Stagg Drive street and drainage improvements to E. R. Dupuis Concrete Company in the amount of $229,800. 50 was approved on a motion made by Councilman Lord and seconded by Councilman Deshotel. Question : Ayes : All Nayes : None -129- August 3, 1982 Resolution 82-278 awarding a contract for construction of the Crow Road Participation Paving Project from 150-feet north and south of Taft Road to Bella Company in the amount of $43 ,591.56 was approved on a motion made by Councilman Lord and seconded by Councilman Cox. Question : Ayes : All Nayes : None -000- Resolution 82-279 authorizing initiation of annexation proceedings for approximately 393 acres south of the city limits including the proposed landfill site and an area east of the site (public hearings scheduled : Joint Session of City Council and Planning Commission on August 16th and On Site hearing on August 23rd) was approved on a motion made by Councilman Lord and seconded by Councilman Cox. Question : Ayes : All Nayes : None -000- Resolution 82-280 scheduling a public hearing on August 24th at 1 :00 p.m. on an eligible blighted designation for industrial revenue bond financing (_area generally bounded by Major Drive , LNVA Canal , Hillebrandt Bayou and the Santa Fe Railroad right-of-way) was approved on a motion made by Coun- cilman Lord and seconded by Councilman Cox. Question : Ayes : All Nayes : None -000- Councilman Lord mentioned noticing a change of a smooth traffic flow into the downtown area to the need to stop several times now, and asked if there could be problems with the traffic control computer. In addition , Councilman Lord questioned the City' s role in controlling drainage pro- visions in high-growth areas such as Parkdale expansion where poor drain- age is already a problem. -000- Mr. Ben Rogers, 2030 Thomas Road, addressed Council to speak in opposi- tion to the area being considered as eligible for the "blighted area de- signation" and expressed his concern for the downtown hotel project with the new Holiday Inn to be constructed at Interstate 10 and Walden Road. Messrs. Mark Steinhagen , 155 W. Caldwood, owner of property where the Holiday Inn is to be constructed, and Patrick Phelan , 2460 Long, developer of Willowcreek, addressed Council in support of the blighted area designa- tion under consideration. Mr. Thad Hoartfield , 605 San Jacinto Building, representing Petro Truck Stop, addressed Council to announce plans of a proposed Relay Station Motel (to facilitate primarily the transportation industry) on approxi- mately 10 acres , with 152 units, and said he would reserve further re- marks until the public hearing. Mr. Carter Farris , 1839 Roberts , addressed Council in support of hotel construction all over the City to encourage groups , conventiones , etc. , to come to Beaumont . -000- There being no further business , the meeting was recessed before continu- ing with the City Council Workshop Session. -000- I , Myrtle Corgey, City Clerk of the City of Beaumont, Texas , certify that the above is a true copy of the minutes of the regular City Council ses- sion held August 3 , 1982. Myrtle Corgey City Clerk -130- August 3 , 1982 EXCERPT FROM COUNCIL WORKSHOP SESSION HELD August 3 , 1982 CITY MANAGER RILEY EY: Included in your packages is a modification to the proposed budget for the Hotel-Motel Room Occupancy Tax which r would like to discuss with you before introducing this item because I think it is a related item. At the end of July, let ' s see, Monday of this week - yesterday, we received final payments for the quarterly distribution related to the Hotel-Motel Room Occupancy Tax receipts for the previous quarter so we can project now for the FY 82 which will end the end of September - that we are now projecting approximately $553,000 in revenues for this year. That ' s about $19 . . . almost $20,000 more than we had made on our projections based on the previous three (3) quarters. So, that does not change our antici- pated revenues that we have projected for FY 83 but it does allow about a $20, 000 additional distribution of resources during the year which would amount to about $720,000 which the Council has to be allocated between the various sources that are available and have been used to . . . for the funds that have been used to promote in the past . The three (3) activities are that of the Convention & Vistors Bureau, the operation of the Community Facilities- and a contribution to the South East Texas Arts Council and its activities. So, the special services portion which had been allocated $420, 000, we have now increased that to $440,000. In other words, it would be available for promotional activities to enhance Convention & Visitors Bureau or other types of activities to promote tourism within the community. Now, in that regard, we have a request to be submitted on behalf of T. E. Moor and the Texas Baseball League, but I think that the presentation will be made by Dennis Sederholm insomuch as 1 think it is being promoted out of the Tourism and the proceeds of the Hotel-Motel Occupancy Tax which will be used to help promote this activity. MAYOR NEILD : Would you take just a minute to clarify, since we are going through the budget process at this time and are dealing with the tax rate what have you, the use of Convention & Visitors Bureau dollars have no relation to the General Revenue funds? CITY MANAGER: No, sir. As a matter of fact , the City is authorized to levy a four (4%) percent surcharge against or for occupancy of hotels and motels in the City and this was done by referendum for this to be allowed. Under the statutes, the City may use these funds to include in the construction, operation and maintenance of tourist attractions, convention facilities , and programs to attract visitors or solicit conventions; to promote pro- motional advertising . . . things of that nature. Also, with the modifica- tion, a portion may be used to promote the Arts, which we have the last several years. The requirement of the statute is that at least twenty-five (25%) percent or 1/4 of all of the revenues received from this source must be used for advertising and direct efforts to attract visitors and to pro- mote tourism and conventions. So, it is mandatory that twenty• five (25%) EXCERPT FROM COUNCIL WORKSHOP SESSION HELD August 3, 1982 Page 2 CITY MANAGER continued: percent of it be used for that purpose and the others must be obligated to related things, but it is not . . . it is outside of the General revenues and is not used to support any of the general activities of the City. So, for that reason, any kind of consideration of the use of these funds should be related for the promotion and encouraging tourism, to promote conventions and bringing in effect the entertainment or the tourist dollar into the community. Mr. Sederholm DENNIS SEDERHOLM: Thank you, Mr. Rile-T7. I am Dennis Sederholm, president of the Beaumont .7 Chamber of Commerce. Warner Rogers, Chairman of the Board, was going to be here but had to leave town; but we are appearing today to make a re- quest on behalf of the Chamber of Commerce and the Convention & Visitors Bureau to ask the City to do two things. One is the endource the idea of bringing Texas League Baseball to Beaumont and second is to make a request in terms of funding from Hotel-Motel Tax to the tune of $125,000.00 to assist Lamar University in bleacher improvements out at the baseball sta- dium. You've got a resolution that the Chamber Board has enacted along with the CVB Board in terms of supporting the AA Baseball in Beau-Mont and the four (4) major things we think it will bring to the City. Without reading the resolution, I 'd like to say that the four are direct economic impact with the payroll, parttime help, the ball players and the economic activity generated. The second is the great addition that we see in at- tracting visitors and conventions to Beaumont . It gives us one more thing to see and do in Beaumont and when we are bringing conventions, we are trying to get tourists to come to our City and hopefully to get them to stay an extra night or get them to come at all. The third area that we think will be advantageous is in terms of quality of life to the local epople living here -- whether new or existing people. We do think it gives the employees and the employers and all the citizens of Beaumont another thing to do during the evening hours and''or when they are playing home games and also to follow in the newspaper. We think it will add to the pride and to the things to do and see in Beaumont . The fourth thing is somewhat of an intangible but again when we are trying to diversity the economy and bring new industry and business in the more things we have in terms of quality of life, the easier it is to bring new business to Beau-Mont and we think having a AA Baseball in Beaumont will be another great thing that we can advertise throughout the Country in terms of our quality of life in Beaumont and thereby helping us in bringing new business and industry to Beaumont . The money that we are requesting is to actually purchase bleachers to be installed at the Lamar Baseball Stadium. The City would retain owner- ship of the bleachers and in fact if at some point in the future they are not needed for one reason or another they would retain . . . the City would retain ownership to do with them as saw fit or to sell. We think both the request to support baseball coming to Beaumont in terms of a resolution by the Council and the funding is very important . In matter of fact , it is crucial to making the decision on the part of the new owner of the baseball team. Where the Money would come from is from the Hotel-Motel Tax. We've EXCERPT FROM COUNCIL WORKSHOP SESSION HELD August 3, 1982 Page 3 MR. SEDERHOLM continued: discussed this with- the City Manager and feel that the money would have to be up front . . . in other words, in 1983 or at least 1982 or 1983 but to be paid back over a five-year period from Hotel-Motel Tax receipts. We think there is going to be growth in that fund. We have heard today earlier about at least one new hotel and I think we've seen 1070 rooms, at least on the drawing boards or rumored in Beaumont in the near future. And, in fact , that fund is going to grow and I think it 's a good time to charge ahead with this type of thing in Beaumont . I ' ll answer any ques- tions on behalf of the Chamber and CVB if you've got any. MAYOR NEILD: Does anyone have any questions of Mr. Sederholm? COUNCILMAN LORD: Dennis, would you elaborate please on your statement about the money needs to be up front and will be paid back? MR. SEDERHOLM: The bleachers have to be installed before April of 1983. One of the things in discussing the terms and the terms of bringing the team here is that the Hotel-Motel Tax money would have to be not over a five-year period because if we try to do it that way, interest would eat Up. T am talking about J_ US however it is done with the CVB as intermediary or the City itself , and that in fact some process be put into effect where the City could go ahead J and commit that money in the next six months - whatever time is needed -- to be paid back to the City over the next five years. Ray Riley can explain the process in terms of how that can be done a lot better than I can. COUNCILMAN LORD: Would you do that , please? CITY MANAGER: Yes, ma' am. Essentially, it would be the equivalent of a lease/purchase agreement . The City would obligate itself to the full purchase price or for the- acquisition of the bleachers and it would be paid over -a 60-month period. The cost would be approximately $253,000 per year plus the interest expense related to that 12-month period. So, we would, in effect , be ob- ligating the full $125,000. 00 upon the time it was purchased but the pro- ceeds from the Hotel-Motel Tax to pay for it would be over a 60-month period. EXCERPT FROM COUNCIL WORKSHOP SESSION HELD August 3 , 1982 Page 4 SESSION LORD: Okay, but the interest payments would come from the Hotel-Motel Tax that ' s what I need to know. Thank you. CITY MANAGER: Yes. MR. SEDERHOLM: Yes, that ' s our understanding also. COUNCILMAN LORD,-, Thank you. MAYOR NEILD. - Are there any other questions? MR. SEDERTHOLM, Again, thank you for your consideration. Our Chamber Board voted on this twice; the last time or both times unanimously but to support bringing AA Baseball to Beaumont. I think it will be good for the City. CITY MANAGER: Mrs. Lord, to follow through on that statement , in reviewing the cost re- lated to the construction, there would be improvements that would be made to Lamar University related to the box seats and other things other than the bleachers . . . restrooms, other facilities so the cost related to the acquisition of the bleachers is estimated to be $125,000. 00 is in effect portable. I think part of our consideration would be that in the event that any changes were to be made either at Lamar or with the team in the future outside the five-year period that there would be something salvage- able to the City with its investment . We do not or would not support the . . . we do not have the capacity to put any general revenues or in effect general fund revenues into the project so any consideration would have to be done through the Hotel-Motel occupancy tax. You can see by virtue of the budget in other words in this modification, there are not sufficient funds in there to warrant $125,000. 00 expenditure to be laid out at the front end in the first . . . in 1983. However, based on the growth antici- pated at about I ' d say it 's been about 14% each year for at least the last three years that we can anticipate that type of growth - that in the future EXCERPT FROM COUNCIL WORKSHOP SESSION HELD August 31 , 1982 Page 5 CITY MANAGER continued: say in the nature of .$30,000 a year or between $25 and $30,000 for the cost of the principle and interest on say the purchase of the equipment that it would probably not detract from portions of the activities that we've already budgeted in the past ; however, the rate of growth of the funds that would be a,�ailable for its participants which are currently . . . the major participants are the Convention & Visitors Bureau and the City that would defer the amounts that might be available in the future so I would just point out that the Convention & Visitors Bureau certainly does have a stake in the endorsement of this in that future budgets both of that they have available for promotion would be somewhat offset by the availability of the funds that would be available to them to use in future years. By the same token, so would the funds . . . this $25 or $30,000 that might have been used to offset part of the cost of operations of the community facilities, including the new Theater which will be operational in October that will be offset somewhat but the rate of growth each year of some $600,000 more than offsets that amount that would be available for this debt service for the bleachers. COUNCILMAN LORD: Now, Bill , excuse the pun but that was one base I wanted to cover . . . bad. CITY MANAGER : I guess the point is it should not reduce any of the activities that we currently have but it would not necessarily make substantial -funds avail- able for other purposes. COUNCILMAN LORD: Just think, I was only worried about the interest . MAYOR NEILD: Is there anyone else in the audience that would like to make any comments in connection with this? CITY MANAGER: Of course, the man from New Iberia who doesn 't have anything to do . . . . . . EXCERPT FROM COUNCIL WORKSHOP SESSION HELD AUGUST 3, 1-082 Page 6 MAYOR NEILD: I would Like to say one thing. Y;'hat we are doing at this time is . . . this will be put on the agenda . . . ? CITY MANAGER: Well, Mayor, the actual dedication of the funds would have to be done as part of the budget process and a special allocation made. I believe however in order to accomodate the Home of the baseball team for the next year, Mr. 1,1001- is going to be having to make some plans and I think at some point , say by next week if the Council were to concur with it , teen I think some resolution - say, a "statement of intent" - would be appro- priate so that either further plans can be made both by Lamar and by Mr. Moor or not and I think while it would not necessarily be binding - only during the budget process would you have the final funds be made available for that purpose. I think that some type resolution of intent would be appropriate to be considered next =week. MAYOR NEILD: I 'd like to say in connection with that that I think Ted' s to be commended. He' s been pretty patient about this thing and he' s indicated his willing- ness to bring the team to. our area and providing not only the community and the citizens and this city an opportunity to have a shot at it in lieu of taking it somewhere else and Ted, appreciate your patience and willing- ness to stand by and offer the city the opportunity to have a team of this nature. I think many of us . . . . . . I 'm just barely old enough to remember the Exporters and do remember going out to Stewart Stadium a few times when I was a kid but those were some fantastic and wonderful days and I hope that this meets with all the approvals that 's necessary. I know that this por- tion or the investment that the City is considering is only a minor portion of the total investment that is going to have to be made. If no one has anything else, we will adjourn to the meeting room upstairs to conclude the budget discussions. Excuse me . . . MR. SEDEPHOLM: I just ;,ant to ask, Mr. Mayor, if there' s going to be any formal action? Ray had said that at least an indication of support to the team by the Council members. MAYOR NETLD I 'd be happy to take a poll or comments. EXCERPT FROM" COUNCIL WORKS-HOP SESSION HELD AUGUST 3, 1982 Page 7 COUNCILMAN LORD: As we can't take, as you know, formal action now . . . I would certainly like to see this resolution come forward. COUNCILMAN COX: Yes, I think T would, too. MAYOR ..NE ILD: Joe, how do you . . . ? COUNCILMAN DESHOTEL: i agree. I think it would be good for the City. I don't, think there would be any opposition to it. MR. SEDERHOLM: Thank you, . END OF EXCERPT.