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HomeMy WebLinkAboutMIN JUL 21 1998M I N U T E S p CITY OF BEA UMONT 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 JULY 21,1998 Becky Ames Lane Nichols, City Attorney Ray A. Riley, City Manager City Clerk The City Council of the City of Beaumont, Texas, met in regular session on July 21, 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 1:32 p.m. Father Francis Burlton, Assumption Catholic Church, gave the invocation. Boy Scout Seth Willis from Troop 601 led the pledge of allegiance. Present at the meeting were: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Ames. Mayor Moore announced that Councilmember Davis will probably not be present today and congratulated Councilmember Davis and his wife, Kimberly, on the birth of their daughter, and conveyed wishes "for many nights of wonderful sleep." Also present were Maurine Gray, Acting City Manager; Lane Nichols, City Attorney; and Barbara Liming, Deputy City Clerk. *Presentations and Recognitions - No proclamations were issued *Public Comment: Persons may speak on scheduled agenda items. Mrs. Cheryl Botley, 5835 Meadowview, addressed Council to state that she is here today representing Gayle W. Botley & Associates because of questions raised at Council last week on Agenda Item No. 3. She said that Botley & Associates served as the principle auditor; they are an independent auditing firm and performed 70% of the audit. Mrs. Botley said their firm would not have been at this point if they had not been given the opportunity to work with the other firm and gain experience; therefore, when the became the principle auditor, they chose that company to serve with them as the secondary auditor because they gave them the opportunity to become the lead auditor. She said that because of Charter requirements, the other firm selected Botley & Associates to work with them as a minority firm. She said that now a minority firm can lead because of that requirement. Mrs. Mary Randall, 4255 Corley, whose business is located at 495 South 4th Street, addressed Council regarding Agenda Item No. 4. As stated last week, Mrs. Randall said her main comment is that Council will be consistent in following the guidelines stated in bid packets. She commented about bidders strictly adhering to the guidelines and then her hearing words such as "discretion" used when awarding the bids. Mrs. Randall said she considers the low bid illegal because it did not meet the guidelines of the bid packet and requested that Council be consistent. Mr. Nathan Wright, 2475 Rusk, a subcontractor for the low bidder for Agenda Item No. 4 authorizing a contract for replacement of the floor at the Harvest Club, stated that all bidders have the same opportunity, same specifications and same advantages to bid on the project, and that Council has the fiduciary responsibility to accept the lowest, qualified bid. He spoke of his and Mr. Dickerson's past performance of contracts with the City, said he does not understand the stall for awarding this bid, commented that he believes the Maintenance Division did a more than adequate job in preparing specifications and drawings to prevent the slab from sweating, and stated that the contract should be awarded regardless of race, color, or creed. Mayor Moore told Mr. Wright that he asked for deferral of this item, that it was not a stall method, but time for City Staff to gather the additional information he requested. Mr. Wright told Mayor Moore that he probably used the wrong word. *Consent Agenda The following consent agenda items were considered: Approval of the minutes of the regular meeting held July 14, 1998; Conformation of committee appointments - Resolution No. 98 -173 Jamie Hogge - Beaumont Advisory Commission for Prevention of Child Abuse and Neglect (term expires 7/20/2000); Darolyn Varner - Senior Citizen Advisory Committee (term expires 7/18/2000; and Tony Abbo- Sister City Commission (term expires 4/1/2000); A) Approve a contract for the installation of vinyl floor tile at the Best Years Center (Porter's Carpets, Inc. In the amount of $17,317.15) - Resolution No. 98 -174 Councilmember Cokinos moved to approve the Consent Agenda. Councilmember Patterson seconded the motion seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Ames Noes: None Minutes; 7121198; Page 2 GENERAL BUSINESS Consider approving a change order and final payment related to the Folsom Drive Pavement Widening Project Councilmembers individually congratulated Public Works Director Tom Warner, his staff, the contractors and everyone involved for doing a good job with the Folsom Drive Pavement Widening Project, especially for completing it in 156 calendar days instead of 450 as quoted. Councilmembers said they have received many complimentary comments from citizens expressing happiness with the final results completed in a timely fashion. Councilmember Cokinos moved to approve Resolution No. 98 -175 authorizing Change Order No. 2 in the amount of ($3,566.70) to reflect actual quantities used and authorizing final payment in the amount of $138,372.15 to Norman Highway Constructors, Inc. for the Folsom Drive Pavement Widening Project. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Ames Noes: None 2. Consider approving a change order and final payment related to the 11th Street Pavement Widening Project Councilmembers again added accolades to Staff, contractors and engineers for a good job completed in less time than originally quoted. Mayor Pro Tem Patterson moved to approve Resolution No. 98 -176 authorizing Change Order No. 1 in the amount of $1,478.49 to reflect actual quantities used and final payment in the amount of $120,936.24 to Excavators & Constructors, Inc. for completion of the 11th Street Pavement Widening Project.. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Ames, Councilmembers Smith, Goodson, Cokinos, and Ames Noes: None 3. Consider approving an agreement with Gayle W. Botley & Associates for auditing services related to the 1998 fiscal year Minutes; 721198; Page 3 Acting City Manager Maurine Gray responded to a request from Council last week for additional information relative to billing hours and cost. She reported that the Botley firm billed the City for 1,099.50 hours for $70,885. Cook Shaver and Williams, the sub - contractor, worked an additional 477.50 hours for a cost of $28,305. Total hours spend on the audit were 1,577 for a total cost of $99,190. The Botley firm performed 70% and the Cook Shave firm 30% of the hours for the audit. With the new agreement, Ms. Gray said interim work will begin in August, and the financial reports completed prior to January 19, 1999, with a total contract amount not to exceed $99,200. Councilmember Smith responded to statement made by Mrs. Botley by saying that she has opposed this contract, but it "has nothing to do with minority, skin color, the race, or creed..." She stated that her voting record does not show her being unsympathetic to minority contractors. Councilmember Smith said her objection is based on the law of the Charter that says new auditors shall be selected every four years. She stated that "we do not have a new auditor because we have the same people who worked on this audit four years in a row, and the same one worked on it last year." Councilmember Smith said that even though the City Attorney's opinion is that this is a legal situation, it is not alright in her book because she feels that this law was written so that new people would be looking at the audit. New people have new ideas and pick up things overlooked. She said this is the reason she opposed the contract last year and the same reason she opposes it this year. Councilmember Smith said it has nothing to do with competency and said she is not comfortable doing this year after year. Councilmember Goodson said he will support Mr. Botley's reappointment based on the fact they did the job, the performance was there on time and within the budget. He said he does agree with Councilmember Smith and thinks this is something that in workshop or in the audit committee that should be looked at. "While we have the letter of the law of the Charter, we also have the spirit, and the spirit says that we as fiduciaries are charged with the responsibility of making sure that we have an independent audit done and we have put the time frame to rotate that so that different eyes are looking at this over a period of time." Councilmember Goodson said he finds no fault with Botley & Associates, but would like the audit committee, with staff, to work with the local Society of CPA's. He said that even though the City's audit is a big piece of business, it is not enough to keep a firm busy for a whole year. There, a firm has to staff up a lot of people for this audit for only part of a year, and can't always be assured of having work for that staff. He said Houston firms can do that because they have so many more clients from which to draw. Councilmember Goodson said he wants the business to stay local, find a way to get good quality work at a good price that we can feel confident in when the audit is given to financial advisors, bond brokers or anyone else and get a good bond rating. Minutes; 721198; Page 4 Then our interest rate will be kept down, and we can afford to pay for big projects such as Folsom Road. Councilmember Goodson added that he will vote to stay with Botley & Associates, but would like the audit committee, the current auditors and the local Society of CPA's to see if we can't find a way to make the process better or at least err by trying. Councilmember Cokinos asked the City Attorney for an interpretation of Article lll, Section 12, of the Charter that says, "No auditor or firm of auditors shall serve as auditor for the City of Beaumont for more than four (4) successive years." Councilmember Cokinos asked if this contract was a violation. City Attorney Lane Nichols said the answer is the same as last year. Four years ago Council appointed the Cook Shaver firm to be the auditor for a term of four years. Last year a different firm (Gayle Botley & Associates) was appointed to serve as the auditor. He said it is not a technical violation of the Charter to do what was done last year or what is being proposed today. He said Council can determine the spirit or if there is other meaning to the Charter. Mr. Nichols said that when he is called upon for a legal interpretation, he reads the words, "interpret it based on the documents that this Council has passed and the status of the Charter at that time." He said there has been no violation of this Charter, nor is one proposed today in his opinion. Councilmember Cokinos confirmed with the City Attorney that he stands by this interpretation. Councilmember Ames stated she understands Councilmember Smith's concern, will support Botley & Associates again, totally agrees with Councilmember Goodson's statements that we do need to look at the issue and interpret the spirit of the Charter. Councilmember Ames told Mrs. Botley that she asked for additional information at last week's meeting. Mayor Pro Tem Patterson stated that she wanted to clarify that the same firm was not hired as was five years ago. She said, "they were totally different firms ... so, we're not violating that law." "Botley & Associates are the firm that we hired for this term, and they are the ones that are totally accountable this time. Four years ago Cook & Shaver were the ones that we hired, and they were the ones who were totally accountable at that time. Now, they are hired to do a certain percentage. In the contract it stated 70% of that work to be done should be done by Botley and Associates. It was done. Thirty percent by Cook & Shaver this time, and it was done. How that could be construed as one firm doing the work, all the work, for that many years is beyond me." Mayor Pro Tem Patterson addressed the spirit of the law, the perception of a minority firm becoming an issue when being hired as the contractor, and spoke about her experiences on Council for the past three years with Minutes; 7/21198; Page 5 no mention of who contractors hire as sub - contractors on other projects or contracts, except in reference to a contract with auditors. She spoke about the spirit, perception, and minorities being a contractor or subcontractor. She expressed her concern, said she is taken back and a little upset this year. She stated that when we talk about the spirit, we need to look within ourselves, and said the law remains the same as it was last year. Mayor Pro Tem Patterson said she is pleased with Botley & Associates; they did a good job in a time manner within the budget. Mayor Moore said it is important to understand that Council is faced with unique challenges every year, and in being progressive, they will continue. He spoke of Councilmember Smith sitting on the auditing committee and going through tough times with auditors and issues through the ESM loss. Mayor Moore said today's situation deals with the growth and development of this community relative to opportunity to share work and eventually lead in the work. He spoke about Charter language that creates discomfort for some interpretation, and said subcontractors have been discussed in the past regarding the level of minority participation in contracts. Mayor Moore said he did originally have discomfort, said the work of Botley & Associates has been great, said their professionalism is not in question, and commented about the process and inconveniences of staffing that might be made on potential auditing bids. He said this is a unique situation, and we have received legal counsel on following the letter of the law. Councilmember Smith added that for her this is an ethical issue that has nothing to do with the color of skin. She confirmed that tough situations have been faced and spoke of proper checks and balances. Councilmember Smith said that a different firm may be the lead auditor, but the same people are performing the audit. Even if 30% of the audit is from Cook Shave and 70% from Botley & Associates, the same people are doing the audit that did the audit four years prior, and said she feels that violates the spirit and intent of the law. Councilmember Smith said that is her only concern, and to read anything else into it is offensive. Mayor Pro Tem Patterson move to approve Resolution No. 98 -177 authorizing an agreement with Gayle W. Botley & Associates for auditing services to begin in August and financial auditing reports completed by January 19, 1999, with contract expenses not to exceed $99,200. Councilmember Goodson seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Goodson, Cokinos, Ames, and Davis Noes: Councilmember Smith Minutes; 721198; Page 6 4. Consider approving a contract for the replacement of the floor at the Harvest Club Acting City Manager Maurine Gray read a report to Council prepared by staff regarding their concern about moisture forming on the concrete floor and vinyl floor tile considered for installation at the Harvest Club and becoming a liability. "Moisture forms on concrete floors when there is a significant temperature differential between the ambient temperature and the concrete, and when the slab temperature has a `wicking' affect that draws the moisture from the ground through the concrete. Neither phenomena stated above should affect the performance nor the use of the flooring system recommended or installation at the Harvest Club. First, the building is air - conditioned 24 hours per day. This keeps the floor and the surrounding air at the same constant temperature. By eliminating the temperature differentials, water condensation will not form on the floor's surface. Secondly, the floor's installation specifications require that the contractor install a 6- millimeter polyethylene vapor barrier between the existing foundation and the new concrete floor. This is double protection from intrusion of ground moisture since the existing foundation also has a moisture barrier installed." Mayor Moore commented that Mrs. Randall came forward with good points, and said he wants the City Manager to understand his feelings. He said that sometimes bidders have problems complying with City requirements, therefore, are "kicked out" of the process. Last Week, Mayor Moore said he questioned being kicked out of the process in regards to a performance bond, and today, he wants to go on record that we are not going to be kicking people out of the process for performance bonds, if we're not adhering to the letter today. He said it is not a requirement by the State, but by the City. Mayor Moore said if the disparity of the bids was closer, her would go with the second low bidder, but because the amount is about $6,000 today, there is a responsibility to the taxpayers to take the low bid. Mayor Moore said he wants management and staff to understand that he would like for us to be consistent in the bid process. From the audience Mr. Wright pointed out that Mayor Moore probably misspoke and meant bid bond instead of performance bond. Mayor Moore acknowledged that he was referring to the bid bond not being a State requirement. Councilmember Ames clarified that the bid bond is to insure that the bidding company will stand on good faith with their bid, and that forfeiture of the bid security would only be received by the City if they failed to comply with the contract or tried to rescind their bid without agreement by the City. Councilmember Ames discussed the small amount lacking on the low bidders bid bond in this case and reported conversation last week with the City Manager indicating there have been cases in the past, and at the discretion of staff a recommendation has been made to Council for approval where a slight adherence was not met. She said that perhaps Council might not have been aware of the small difference lacking on the low bidders bond, Minutes; 721198; Page 7 if Mrs. Randall had not called it to Council's attention, and told Mrs. Randall that if the role was reversed, she would feel no different, and said she stands on her voting record. Mayor Pro Tem Patterson said she is going to vote for approval of this item only because of the amount of savings, said she concurs with the Mayor that "if we are going to set a process in place, we need to be consistent." Councilmember Ames moved to approve Resolution No. 98 -178 approving a contract with Action Construction in the amount of $56,592 for removal of the existing wooden floor and replacement of a concrete floor and vinyl floor tile at the Harvest Club. Councilmember Smith seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, Ames, and Davis Noes: None 5. Consider approving a contract for painting the interior of the Beaumont Public Library Councilmember Cokinos moved to approve Resolution No. 98 -179 authorizing a contract with Haygood Paint Contracting of Warren, Texas, in the amount of $61,800 for furnishing all labor, materials, supplies and equipment for painting the interior of the Beaumont Public Library. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, Ames, and Davis Noes: None 6. Consider a request for an historical tax exemption for the property located at 381 College Councilmember Cokinos commented about touring the building and said he feels they are well deserving of this consideration. Councilmember Smith said they have a lot of work to do on the building, but it is exciting to see plans for an old building to be rehabilitated. Councilmember Cokinos move to approve Resolution No. 98 -180 approving a tax exemption for a term of ten years at the request of 1919 SJD Beaumont, Ltd. For establishment of law offices of Sheldon, Jordan, and Dunham at 381 College Street. Councilmember Patterson seconded the motion. MOTION PASSED. Minutes; 7!21!98; Page 8 Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, Ames, and Davis Noes: None COMMENTS " Councilmembers comment on various matters Mayor Pro Tem Patterson announced that there will be a reopening of 11th Street celebration on August 1 from 11:00 a.m. to 1:00 p.m and everyone is invited to attend. The celebration will be located in front of Ray's Custom Cabinet Shop and Reviews Beauty Shop. She said there will be free links and soft drinks, the Mayor will be present to make remarks, and there will be a moon walk and other activities for children. Mayor Pro Tem Patterson extended a special invitation to neighborhood associations to attend the celebration and said the Pearl Orchard Neighborhood Association will be giving away free T- shirts. Councilmember Cokinos extended a Southeast Texas welcome to Governor George W. Bush who is in Beaumont today and congratulated the Reverend G. W. Daniels for the recent honor bestowed upon him at the Country Club. Councilmember Goodson thanked fellow councilmembers for filling him in on activity happenings during his recent vacation to New Mexico and thanked the City Manager and Kyle for bringing him up to date on Council agenda items. Councilmember Goodson told Mayor Moore that he looks forward to a workshop regarding items, such as a couple they heard about today, that need tweaking in ways to make the city better. He commented that he was not here last week to hear comments about the bids for the Harvest Club floor renovation, but said he would be reluctant to do away with some of the requirements of bidding. Bid bonds may not amount to a lot of money, but it is a guarantee that if the low bidder realized there was a lot of differential between his bid and the second low bid and decided not to enter into a contract, he could not "low -ball" the contract. He commented about needing to work through these situations and about Mrs. Randall's mentioning eliminating the "slip factor," and bidders needing to be assured they have a fair shot at the bid. Also, Councilmember Goodson thanked Scott Sheldon and his partners for rehabilitation another building in downtown Beaumont. He spoke of good press regarding downtown Beaumont, Carolyn Howard and the Main Street Program, the Jefferson Theatre, and expressed hopes that Section 108 loans will be successful for more dramatic improvements. Councilmember Goodson said he receives many favorable comments from out-of -town visitors about the commitment Beaumont has made to follow through with revitalization of downtown, and said that downtown represents a true melting pot of all races, creeds, and color. He said he is very pleased that we have people who are willing Minutes; 7121198; Page 9 to make the commitment and pour the money in toward this effort, and said he is happy Council can do a little bit to help. *Public Comment (Persons are limited to 3 minutes) Mrs. Cheryl Botley, 5833 Meadowview, thanked Council for their vote, but said she is still not hearing a good sign. Mrs. Botley questioned Council understanding the profession of Certified Public Accountants because of usage of the term independent auditors. She said auditors were changed, and that Mr. Botley's signature on the audit is solely his opinion rendered. Mrs. Botley said she did not mention skin color or minority skin, but mentioned sub - contractors versus primary contractors. She continued to speak about sub - contractors and them getting experience and opportunity. She contended that "independent auditors- - Certified Public Accountants is totally different from selling yard supplies or machinery. This is a professional service." Mr. Nathan Wright, 2475 Rusk, directed comments to Mayor Moore and said that as president of a charitable organization, he also tables items for more information and discussion, and said his use of the word "stall" was incorrect and apologized to Mayor Moore. Mrs. Mary Randall, 4255 Corley, said she remembered initially saying she would accept Council's decision regarding the award of the contract at the Harvest Club. She said Dr. Smith spoke well of following guidelines, and said her purpose in being here was to insure following contract guidelines. Mrs. Randall said she still thinks the real issue is not the $6,000 difference in bids, but is the legitimacy of following the guidelines. She said she understands the problems in getting a bid bond because she had to get a cashier's check and was disturbed to hear presentation that it is at the City's discretion to accept a bid that does not absolutely meet bid requirements and acceptance of what she considers to be an "illegal" bid. Mrs. Randall said her point is consistency and bidders knowing what is expected. Mayor Moore said Council brought to his attention last week a similar incident, said this Council has a responsibility to clean this up so that it doesn't happen again. He said that both Mrs. Randall and Action Construction brought forward true points. He said consistency is very important and changes need to be made so there will be no gray areas. Mayor Moore said in discussing race, contracts, or themes that are uncomfortable, Council has a responsibility to work toward keeping peace, tow the line, stay together as a group and try to diligently represent the concerns of constituents. He said the job is not easy. Mayor Moore said there was never a question of a person's ability and referred to a Council statement of five years ago regarding bringing everybody in to participate in the process and then we would reflect the diversity in our community. This would allow demographics to Minutes; 7/21/98; Page 10 reflect how" do business. He said we still have a way to go, but the goal is to aid minority participation so they will be able to stand on their own and move forward, and it has been done in some instances. Mayor Moore said Council will do what is right, and said it may not always be what everyone wants. He told citizens that Council will continue to work on the issues and challenges presented today. Mayor Moore invited Michael Sterling, a Mo -Beau student, who has been working in the Executive Offices this summer to make comments regarding his experience. Michael began addressing Council by saying that he is elated that Mayor Moore has given him an opportunity to express what he has experienced in working with the mayor, council, and staff. He thanked Mobil Oil and the City of Beaumont for the opportunity to work here this summer. He complimented the mayor and council for a meritorious job, said they are attempting to make sure our city is second to none. He said he has thoroughly enjoyed his job this summer from going to meetings with the mayor to answering phones to handling citizen complaints. Michael volunteered to be back next year, if needed. He said he is "instrumental in helping the mayor to help youth stay out of trouble, out of gangs and out of jails, and into colleges, and into a positive future." Michael thanked "Mrs. Barbara Otto who has taught me so much and who is an extremely hard worker for the mayor." Michael said her hospitality has overwhelmed him and made him want to stay just a little bit longer. He also thanked Ms. Karen Lewis and Mrs. Angela Thomas sand said he hopes he has been an asset to them for the past eight weeks. Michael thanked Mr. Kyle Hayes for taking him under his wing and being an inspiration to him. Michael concluded his comments by again thanking the mayor and council for the opportunity and said he looks forward to working with them again in the future. Mayor Moore told Michael that he has never been more impressed with a presentation than the one he gave and said he hopes that citizens see this as the future of our community. Mayor Moore said he looks forward to continuing to help young people and invited Michael to close the Council meeting as "Honorary Mayor" in one of his last duties at City Hall. Sitting in the mayor's chair, Michael asked for additional comments from Council. There being none, Michael adjourned this portion of the meeting. EXECUTIVE SESSION *Executive Session in accordance with Section 551.071 of the Government Code to discuss contemplated or pending litigation: Firefighter Arbitration There being no further business, the meeting recessed at 2:45 p.m. to reconvene in executive session. Minutes; 72119&, Page 11 Mayor David W. Moore Barbara Liming, Deputy City C rk Minutes; 7/21/98; Page 12