Loading...
HomeMy WebLinkAboutMIN JAN 26 1999 M I N U T E S CITY OF BEAUMONT Lulu L. Smith DAVID W. MOORE, MAYOR Bobbie J. Patterson, Mayor Pro Tern Guy N. Goodson CITY COUNCIL MEETING Andrew P. Cokinos John K. Davis JANUARY 26, 1999 Becky Ames Lane Nichols, City Attorney Ray A. Riley, City Manager Barbara Liming,City Clerk The City Council of the City of Beaumont, Texas, met in a regular session on January 26, 1999, 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 * Consent Agenda Mayor Moore called the meeting to order at 1:30 p.m. The Reverend Kevin LaRousse, Central Emmanuel Baptist Church, gave the invocation. Mayor Moore led the pledge of allegiance. Present at the meeting were: Mayor Moore, Mayor Pro Tern Patterson, Councilmembers Goodson, and Cokinos. Councilmembers Smith, Ames, and Davis were absent. Councilmembers Smith and Ames were out of town, and Councilmember Davis was ill. Also present were Ray A. Riley, City Manager; Lane Nichols, City Attorney; and Barbara Liming, City Clerk. *Presentations and Recognitions - One proclamation was issued: "Groundhog Job Shadow Day," February 2, 1999 (honoring efforts of Jr. Achievement and School to Work for inspiring and encouraging young people and providing them with opportunity to experience the work force for a day). *Public Comment: Persons may speak on scheduled agenda items Citizen comment was invited on the Consent Agenda and Regular Agenda Items 2 and 3. Mr. Allen Lee, 5095 Maddox, addressed Council to question the purpose and institution of the Consent Agenda. He sited items on the Consent Agenda and claimed they are improperly placed there without legal documentation, dollar amounts, contractor names, and are not deliberated separately. Mr. Lee stated that he has filled charges at the District Attorney's office, the Texas Rangers, and FBI and wants to take the issue to the Justice Department. He spoke of previous rulings in his favor by the Ethics Commission, said he has creditability outside Beaumont, said he is trying to put each member of Council in a federal prison, spoke about Beaumont citizens being lax and commented that there is not an Afro-American person in the County Prosecutor's office. *Consent Agenda * Approval of the minutes of the regular meetings held January 19, 1999 * Confirmation of committee appointments - Resolution No. 99-18 A) Approve a pledge of collateral by Chase Bank of Texas, N.A. to accommodate increased deposits (a Surety Bond issued by MBIA Insurance Corp. in the amount of $840,000) - Resolution No. 99-19 B) Approve the acceptance of a drainage easement (0.329 acre, 14,330 square feet, west of and adjacent to Bellechase Section Three, Phase Three, Hezekiah Williams Survey, Abstract 56 from Mr. William Little of Little Development Company) - Resolution No. 99-20 C) Approve the acquisition of property for the Concord Road Improvement Project (Parcel No. 64: 0.055 acre out of A. Williams Survey, Abstract 383, 3495 Concord for compensation of $8,890 from Jasper J. Perello) - Resolution No. 99-21 D) Approve the settlement of a lawsuit (Lin d.Jos pb Frederick v_ City of Beaumont in the amount of$75,000) - Resolution No. 99-22 Councilmember Goodson moved to approve the Consent Agenda. Councilmember Cokinos seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tern Patterson, Councilmembers Goodson and Cokinos Noes: None PRESENTATION * Receive Comprehensive Annual Financial Report from Auditor - Gayle W. Botley & Associates Mr. Gayle Botley introduced his co-worker, Ms. Shawna Tubbs, and referred Council to page 47 under General Fund of the Comprehensive Annual Financial Report indicating a balance of$7,025,483 at the end of FY1998, an increase of over $5 million from the previous year. Secondly, Mr. Botley referred to the Financial Section on page 2 and addressed the auditor's opinion report and said that except for the year 2000, "the general-purpose financial statements present fairly, in all material respects, the financial position of the City as of September 30, 1998, and the results of its operations and the cash flows of its proprietary fund types and nonexpendable trust funds for the year then ended in conformity with generally accepted accounting principles." Mr. Botley said that on the whole, the City did well. In some immaterial things, there were some findings that have been discussed with management and the Audit Committee. He asked Council to focus on the third paragraph of the first page beginning with "Because of the unprecedented nature of the year 2000 issue , the effects and the success of related remediation efforts will not be fully determinable until the year 2000 and thereafter. He said the Governmental Accounting Standards Board says that because of year 2000 issues and outside influences, there is no assurance the City is Minutes; 1/26/99;Page 2 or will be ready. He encouraged the City to keep expending money to prepare for year 2000 and stay up with currents events as has been practiced. He complimented staff for doing a good job. He added that auditors cannot remark on uncertainties, but on events that have happened and can be substantiated. No one will know the results of the year 2000 until that time arrives. He further discussed the City's obligation to disclose certain information, said the City is making good attempts, but the year 2000 issue goes beyond the City to vendors, suppliers, government agencies, federal and state, banks, the County of Jefferson, and anyone with which the City does business. The impact on the City is unknown and leaves an uncertainty and is the purpose for the statement in the opinion. Mr. Botley offered to answer question. Councilmember Goodson thanked the auditors for a very comprehensive report, asked if there were any changes other than the Y2000 that would have been material from the previous report. Mr. Botley conferred with Finance Officer Hodges who stated that a transfer reclassification of reporting dependent health coverage was made, but is nothing substantial. Mr. Botley thanked Council, the City Manager, Beverly Hodges, and Paula Labrie for the excellent support they received, and said that for the second year, the report has been completed on time and within budget restraints. Beverly Hodges voiced expectations that other cities will also receive similar comments about the year 2000 issue, and said they are happy with the report. Mr. Riley expressed appreciation to Mr. Botley as the independent auditor, said a number of items have been brought to the attention of staff, corrections have been made, and expressed appreciation to Mr. Botley for the manner in which he has prepared the report for Council. Mayor Moore thanked Mr. Botley and his staff and City staff, and said members of the Audit Committee were appreciative of information and presentations shared with them, and said checks and balances are always good. GENERAL BUSINESS 1. PUBLIC HEARING: Settlement of the Entergy/Gulf States Rate Case Consider an ordinance authorizing settlement of the Entergy/Gulf State Rate Case The City Manager introduced Ordinance No. 99-6 ENTITLED AN ORDINANCE APPROVING SETTLEMENT OF VARIOUS CASES AND SETTING THE RATES OF ENTERGY GULF STATES, INC. IN THE CITY OF BEAUMONT, TEXAS; PROVIDING FOR CONDITIONS, SEVERABILITY,AND REPEAL OF CONFLICTING ORDINANCES. He stated that the City Attorney has a report to present and a public hearing is required. Minutes; 1/26/99;Page 3 City Attorney Lane Nichols reported that he is extremely happy to recommend an ordinance authorizing the settlement of the pending utility rate case with Entergy/Gulf States. He said it was filed in November requesting about a $90 million increase, and all parties, including the industrial intervenors, cities, Office of Public Council, public utilities staff and the company have worked diligently over the last few months in an attempt to come to some agreement over utility rates and put to rest some uncertainties for the future. He said the case will result in about a $4.2 million decrease. He said it is very complicated and includes the company giving up accounting deferrals in attaining an increase in this case. The net between the accounting deferrals and the increase in rates is still a decrease of over $4 million. The rates will be frozen until June, 2000; five of six pending pieces of litigation will be dismissed. The remaining old piece of litigation is regarding the River Bend nuclear facility and will be put on hiatus until 2002. It will then be litigated, if the company chooses to move forward, but will be capped at$115 million, less depreciation, and would not be used to raise rates above current levels. He spoke of a fuel reconciliation case to be filed. Mr. Nichols conclued by stating there are other factors, and he is excited about the case and recommends adoption. The public hearing was opened at 1:53 p.m. Mr. Allen Lee, 5095 Maddox, addressed the public hearing to state the excellent relationship he experienced with Entergy personnel during a discussion about the ice storm Beaumont experienced and the loss of power. He said he was impressed with them being a first-rate class company and is happy with the settlement and lower utility bill. Mayor Moore spoke on behalf of Council to the City Attorney and Entergy and said that conversation has been taking place for over 15 years about getting to this place of settlement, and this is a very positive step. He expressed appreciation to Mr. Greg Shepherd and Entergy for the process taken to keep the public aware of issues and the opportunities of meeting in discussion regarding issues. He spoke of communication with Entergy and plans they have for the future. He said it is a great step forward when rates can be lowered for consumers, and invited Mr. Shepherd to comment. Mr. Greg Shepherd thanked the Mayor for his comments, echoed Mr. Nichol's comments about reaching a settlement, concurred it is an unprecedented happening and hopes it will set a precedent. The public hearing was closed at 1: 57 p.m. Councilmember Cokinos moved to approve Ordinance No. 99-6. Mayor Pro Tern Patterson seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tern Patterson, Councilmembers Goodson, and Cokinos Noes: None Minutes; 1/26/99;Page 4 2. Consider approving a contract to conduct a water supply study for the City of Beaumont's water system Councilmember Cokinos moved to approve Resolution No. 99-23 authorizing a contract with Freese-Nichols, Inc. and Dikita Engineering to perform a study to bring the City's water system into compliance with new drinking water standards and to recommend repair methods for the damaged north ground storage tank for an amount not to exceed $328,400. Councilmember Goodson seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tern Patterson, Councilmembers Goodson, and Cokinos Noes: None 3. Consider approving change orders and a final payment related to the Southwest Elevated Tank Repairs and Repainting Project Councilmember Cokinos moved to approve Resolution No. 99-24 authorizing Change Order No. 1 in the amount of$7,614 to adjust the contract for extra work performed and Change Order No. 2 in the amount of$3,000 for disposal of hazardous waste as mandated by the U. S. Environmental Protection Agency and final payment in the amount of$21,029 to the contract with Coatings, Inc. Mayor Pro Tern Patterson seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tern Patterson, Councilmembers Goodson, and Cokinos Noes: None COMMENTS * Councilmembers comment on various matters Mayor Pro Tern Patterson announced the Tyrrell Park Neighborhood Association meeting will be held February 1st. Mayor Moore congratulated all the employees and retirees who were honored last Friday evening for their years of service to the City of Beaumont. Mayor Moore reviewed the total number of employees honored and the total number of service years. Twenty-six retirees accumulated 613 hours of service and another 323,000 hours of service by the remainder of the employees present. Employees were recognized for increments of five years of service. Mayor Moore commented this was quite an event and probably the largest held yet. He said that one employee (S. A. Webb) was recognized for being with the City for 40 years and is still a productive employee. Minutes;1/26/99;Page 5 * Public Comment (Persons are limited to 3 minutes) Mr. Tony Jones, 508 Garland, spoke of reading and hearing about the retirement decision of Mr. Riley and expressed his opinion that Council should first look within the list of City employees and local residents to choose his replacement before using the professional services of an outside search firm. Mr. John Fisher addressed Council regarding a structure at 995 Brockman. Mr. Fisher related that demolition notices were received by his grandmother at that address, and he has just recently become aware of the situation. Also, Mr. Fisher stated that the property has been in the process of being transferred into his and his brother's names since the death of his mother. Mr. Fisher asked Council for some assistance in deferral of action until the name changes are finalized and he has opportunity to make the repairs or finalize a sale to an interested party. Mayor Moore suggested Mr. Fisher meet with Mayor Pro Tern Patterson and City Attorney Lane Nichols after the meeting to share information and investigate any options. Mr. Curley Landry, 950 San Jacinto, addressed Council to speak about structures at 1670 and 1680 Turon. Mr. Landry reported that his mother received the letter regarding demolition, but he just became aware of the notice recently. He stated that the structure at 1670 needs to be demolished, but said the structure at 1680 Turon is a strong structure and can be rehabilitated. He requested Council intervention into the process. Mr. Landry was also instructed to meet with Mayor Pro Tern Patterson and City Attorney Nichols to review any legal options available at this point of the procedure. Mayor Moore also asked the City Manager to assist in investigating any possible recourse. Mr. Lynn DeMary, 430 East Elgie, announced on behalf of the South Park Neighborhood Association that the first meeting of 1999 will be held Thursday at the South Park Baptist Church at 6:30 p.m. Mr. DeMary also addressed the demolition program and a report given to Council recently about restoration of a commercial structure in South Park that has gone beyond the original program date. Mr. DeMary encouraged Council to continue efforts in security of buildings, enforcing safety and health code needs of the community, and protecting citizens from people who habitually miss their work program dates and leave structures that never are fully repaired. Mr. DeMary expressed concerns with the commercial property in South Park. Mr. Allen Lee, 5095 Maddox, addressed Council to voice opinions about Beaumont's water. He stated his household does not use Beaumont water for drinking or cooking. In his opinion, Mr. Lee stated that the selection of a new City Manager should be done after the May election. He supported choosing three final candidates and conducting a televised forum with a question and answer session from the citizens of Beaumont. Mr. Lee said this would become an issue with him. Also, Mr. Lee expressed his opinion that the house moving ordinance is illegal and racist and claimed that one lady's opinion caused the change. Mr. Lee voiced his opinion that the news media is racist because there is not an Minutes;1126199;Page 6 African American anchor person on any news channel or on the editorial desk of the Enterprise. He stated that 70% of TV viewing is African American. Mr. Lee again reviewed his desire for the process to be used in hiring the City Manager, and said the City Manager is the most powerful man in Beaumont because he controls all City employees. He complimented Mr. Riley's performance in the latter stages of his tenure. EXECUTIVE SESSION *Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Arbitration concerning elimination of a Grade III Firefighter position Arbitration concerning the Labor Agreement for Firefighters 1997-1999 Defaulted Small Business Loans: Nyron Colbert, Joseph Richards, Lafayette Spivey, Lin Marie Garsee, Willie Parker, III, and Brenda Travis Claim of Elijah Ricky Jason *Consider matters related to employment, evaluation and duties of a public officer or employee in accordance with Section 551.074 of the Government Code: City Manager There being no further business, the meeting adjourned at 2:25 p.m. Mayor David W. Moore Barbara Liming, City Clerk Minutes;1126/99;Page 7