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HomeMy WebLinkAboutMIN SEP 15 1998 M I N U T E S . CITY OF BEAUMONT 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 SEPTEMBER 15, 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 a regular session on September 15, 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 1:30 p.m. The Reverend Max Crawford, Southside Assembly of God Church, gave the invocation. Community Services Director Maurine Gray led the pledge of allegiance. After the pledge of allegiance, Mayor Moore asked Community Services Director Maurine Gray to give an update of Squadron 1 that did not arrive at the Port of Beaumont as planned. Ms. Gray reported that the ships had to return because of the high seas associated with Hurricane Frances, but said the Commodore was able to visit Beaumont Friday and thanked Mayor Moore for his time and hospitality. The ships have rescheduled a visit to Beaumont on Thursday, October 8, throughout the weekend and will be available for public tours. Present at the meeting were: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, Ames, and Davis. Also present were Ray A Riley, City Manager; Lane Nichols, City Attorney; and Barbara Liming, Deputy City Clerk. With a prearranged cue from Mayor Pro Tem Patterson, Council, City Staff, and audience all rose and surprised Mayor Moore by singing "Happy Birthday' to him. *Presentations and Recognitions One proclamation was issued, "Assisted Living Week," September 13-19, 1998. After receiving the proclamation, Councilmember Becky Ames, executive director for Collier Park Retirement Community, and members of her staff presented a check in the amount of $2,300 to Ms. Joyce Philen and her staff for the Area Council on Aging. Councilmember Ames explained that the money was raised through a health fair and a percentage was reserved for the local community, and they chose to make a contribution to the Area Council on Aging. Council was invited to attend a social tomorrow evening at the Collier Park Retirement Community to become acquainted with residents and services offered. *Public Comment: Citizens were invited to comment on the Consent and Main agendas. Ms. Grace Gearinger, 3410 Evalon, thanked Council for placing Heath Vaughn Enterprises as an item for executive session. She spoke about them being non-compliant with zoning regulations and in opposition to them operating a Ryder Truck Rental business. *Consent Agenda The following consent agenda items were considered: * Approval of the minutes of the regular meeting held September 8, 1998; * Confirmation of committee appointments - Resolution No. 98-245 (Albert Robinson to the Planning Commission for a term expiring 9/15/2000.) A) Approve a contract for the demolition of the former Dick Dowling School located at 1300 North Street(with C &C Demolition in the amount of$58,185 to be completed in 60 days) - Resolution No. 98-246 B) Approve an easement to Entergy Gulf States, Inc. related to the Concord Road Improvement Project (an aerial and guy wire anchor easement executed with Entergy on portion of Isla Street and a portion of the Babe Zaharias Park for relocation of their facilities for Concord Road Project) - Resolution No. 98-247 C) Approve annual maintenance agreements related to computer software 1) Approve the renewal of an annual software support agreement with HTE, Inc. In the amount of$33,030 for software system used by various City Departments - Resolution No. 98-248 2)Approve annual maintenance agreement with Compu-Tech in the amount of$20,022 for computer software support - Resolution No. 98-249 Councilmember Smith moved to approve the Consent Agenda. Mayor Pro Tem Patterson seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, Ames and Davis Noes: None GENERAL BUSINESS Minutes;9/15GS;Page 2 1. Consider selling property located at 3500 Chaison to the United States Postal Service Mayor Pro Tem Patterson moved to approve Resolution No. 98-250 authorizing sale of a 4.5 acre tract described as Block 60, Jef Chaison 2nd Addition, and Lots 1-10, Block 5, Pear Orchard Addition, 3500 Chaison, the former Giles Elementary School, to the U. S. Postal Service in the amount of $162,500 (for relocation of the post office at the Stadium Shopping Center). Councilmember Smith seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, Ames, and Davis Noes: None 2. Consider authorizing the City to file an appeal of the most recent Entergy/Gulf States rate case and authorizing intervention in the upcoming November rate case Councilmember Goodson moved to approve Resolution No. 98-251 authorizing the City of Beaumont to participate with other cities in countering any and all appeals filed by Entergy/Gulf States, appeal rates set, and intervene in the upcoming November rate case. Councilmember Smith seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, Ames, and Davis Noes: None OTHER BUSINESS * Presentation from the Jefferson Theatre Preservation Society Mr. Roy Steinhagen, Capital Campaign Co-Chair, for the Jefferson Theatre restoration, started his presentation by quoting a wise man that once said, "A city without a vibrant downtown is like a person without a soul." Mr. Steinhagen applauded Council efforts for redevelopment of downtown Beaumont by utilizing special funding opportunities through HUD Section 108 loans. Mr. Steinhagen recapped progress made in the Capital Campaign to raise $4 million for restoration of the Jefferson Theatre to its 1927 splendor. He said that during the past three years more than 150 civic leaders have laid groundwork to insure success of the campaign. The campaign went public in June, and to date over $1.4 million has been raised with Minutes;9/15M;Page 3 $630,000 of that already in the bank. Next Tuesday two training seminars will be held to properly prepare more than 250 volunteers to begin the area-wide general campaign. At that meeting, Mr. Steinhagen said he will inform the volunteers that the goal has been raised to$5 million. That will provide for the unknown and weather any unforseen difficulties and allow completion of a first-class job. Mr. Steinhagen turned the presentation over to Milton Bell to give a brief of the scope of work. Mr. Bell said this is a historical restoration, not just remodeling an old building, and meeting guidelines of the Secretary of the Interior. Mr. David Hoffman, a well know restoration architect will be involved with this program. The scope of work includes weatherproofing, upgrading all stage efforts--rigging, lighting, and sound systems, Code requirements updated, ADA accessibility addressed, and said embellishments will be added by scattering restroom facilities throughout the building. Mr. Bell referred to remodeling endeavors of the past. Councilmember Smith reminded Mr. Bell about dressing rooms. Mr. Bell commented that dressing rooms will be added under the stage for chorus dressing and individual star dressing rooms will be added. Mr. Steinhagen said all this work is scheduled to be completed in time for the Spindletop 2001 celebration. Once ready, Mr. Steinhagen said "the Jefferson will stand ready to serve all segments of our community through a full season of local programs and professional shows." He added that the rebirth of the Jefferson Theatre will stimulate additional development and tourism dollars will be added to our community through hotels, restaurants and shopping areas. Mr. Steinhagen requested the City's financial assistance of$2 million (HUD, Section 108 funding). Mayor Moore commented about the City leveraging dollars for progress through public and private partnerships and this project being an excellent example. He congratulated the wisdom in preparing for unexpected expenditures that could be involved in bringing about a first-class restoration and the leadership and vision of people behind this project. Mayor Moore confirmed that this item will be brought back for consideration and a public hearing held. * Presentation from Entergy/Gulf States Mr. Greg Shepherd, lead manager for Customer Services, thanked Council for the opportunity to discuss electric competition. He listed benefits of Entergy in our community: 1100 employees in Texas and over 500 in Beaumont, a back office operation that provides billing and customer accounting activities for all of Texas and most South Louisiana customers, a call center operation to handle calls for a four-state area, headquarters for fossil operations for 21 plants, and a full range of employees to provide service to the community. He spoke of their partnerships for economic development in Southeast Texas, Minutes;9!15196;Page 4 a data resource center in the Edison Plaza, an MBE Center, and a contributor to many charitable organizations. He said these factors serve as a reminder that Entergy is a valuable asset to the community. Mr. Shepherd said that "Entergy is for competition done right." He said that"doing it right means competition in the electric industry should benefit all customers--those in the city--those in the rural areas throughout the state of Texas. Plans for electric competition should ensure that prices do not go up for any...customers. Each state should now begin to write the rules for completion..." Mr. Shepherd said that is being done in Texas legislature through interim study committees. He said changes need to preserve the reliability of the system for all to use, and that Entergy has been on record supporting customer choice. Mr. Shepherd asked Entergy's's local legal Council, Mr. Larry Germer, for additional comments. Mr. Germer addressed Council in rebuttal to comments made last week by Power Choice and former Governor Mark White. Mr. Germer said Council does not have to grant a franchise, but does have the power to do so. Power to grant the franchise is not the question, Mr. Germer said. He said there are five real questions: 1) What does this franchise mean in this context? What are they really trying to do? 2) What is it they want to do? 3) Can it be done under Texas law? 4) What do they need from you, if anything? and 5) Should the City of Beaumont issue a franchise. Mr. Germer expressed his opinions on all five points and told Council a packet would be distributed to them later. He said the franchise requests the right to construct poles and lines. In essence he said they are asking for what already exists and is unnecessary. Mr. Germer quoted statements from Beaumont Power and Light stating that they do not want to construct double lines. He contended that BP&L really wants the right to use Entergy lines in "some system that doesn't yet exist," and said this is called retail weaving, pass through and other different phrases. Mr. Germer said if a system was developed to force Entergy to allow use of their lines, it would be in the future and would require legislation and other approvals. In reference to cities with dual certification, Mr. Germer said there are two companies with two sets of lines and poles and residents choose one company for service and remain with them unless they pay a significant fee to make a transfer. He said that to get"wheeling," they only need to go to the PUC. Mr. Germer raised the question of need for another franchise and discussed Senator David Sibley's request for an Attorney General opinion that will eventually cover all the questions raised. He also stated that this matter will be discussed next year in the legislature, and questioned action now without full knowledge of what the eventual outcome will be. Mr. Germer addressed risks for the City, unbundling, forced litigation by Entergy, costs of litigation for the City, the risk of time and effort, and answering citizen queries of issuing another franchise to build another set of lines and poles. Mr. Germer reviewed three rate chart comparisons as shown in Exhibits "A, B and C." Mr. Germer said the comparison to Southwest Service on Chart A is a wholesale transaction and reflects a one-month refund for Southwestern Electric. He said that Chart B reflects the Minutes 9/15W;Page 5 true picture. Chart C shows how rates will compare in September. He claimed that the report received about lower rates in August last week was a one-time fluke caused by a refund. Mr. Germer suggested questions that Council should be asking to be: what is their business plan, how many jobs in Beaumont, customer service and phone centers setup and location, open competition, scope of service, written consumer policies, accountability and guarantees. Mr. Germer recommended that action on granting a franchise be postponed until after the legislature meets. He stated that Power Choice is asking too much for too little. Mr. Germer distributed a handout of additional information to Council. A lengthy Council and staff discussion included: the requested franchise not coupled with a tariff, buying into a concept, the franchisee returning and expecting institution of a rate case, responsibility for development of a tariff, local control and ownership, questionable performance of Entergy, tieing desired responsibilities into a franchise, uncertainty of action by the legislature this year regarding deregulation, franchising without a business plan, complexity of this issue, possible cutbacks of employees, cost and responsibility of litigation, who might be involved in litigation, interruptible rates, the Attorney General's opinion, BP&L's franchise fashioned after Entergy's, prudence of waiting for the AG report before taking action on the franchise, possible retention of expert counsel, additional study and work sessions, Council original jurisdiction to set rates and the appellate procedure, a desire for a written business plan from BP&L, and cherry picking select clients. The City Attorney responded to Council queries and said that unless the rates are going to be lower or the service better, there is no reason to grant a franchise, and Council needs to be comfortable in the direction in which they are moving. After their discussion Councilmembers asked the City Attorney to research and bring back information to them regarding 1) the possibility of a franchise being laced with a requirement that it be granted with stipulations that certain conditions or precedents be met; 2) determine how franchise fees presently received would be affected with a second electric franchise, who would pay them and how, 3) take the language of the franchise ordinance and reduce it to a more exact step by step procedure; 4) Charter validity regarding deadline and signature requirements to put an issue on a ballot and how it interplays with Council responsibility; and 5) a written business plan from BP&L outlining their goals and scope of service and charges. Mr. Shepherd and Germer offered their assistance in working through this complicated issue. Councilmember Smith reported a lengthy article in the Wall Street Journal regarding deregulation. Minutes;9/15/96;Page 6 Mayor Moore recognized interested parties of Beaumont Power and Light in the audience and extended opportunity for comments from a representative. Former Governor Mark White reported that the intent of BP&L is to serve every citizen in Beaumont who chooses their service. Mr. White expressed doubts of an early opinion from the Attorney General, said they have no intention of duplicating poles and lines, and said they would hold the City harmless regarding franchise fees, and whatever business plan is prepared will be available to the City. Mayor Moore spoke of this not being a point, counter-point situation, but a desire to obtain as much information as possible to make an informed decision and for citizen clarity. COMMENTS * Councilmembers comment on various matters Councilmember Goodson encouraged everyone to attend Business Showcase `98 at the Civic Center. He said it is a very good program. Mayor Moore asked Water Utilities Director S. A. Webb to address recent occurrences in the water system. Mr. Webb reported that storms resulting from Hurricane Frances caused problems in the water and waste water for the Water Utilities Department. He said it was most unexpected on the water side. There has not been an occurrence when saltwater entered fresh water canals since Hurricane Carla in 1961. Mr. Webb said they are working with meteorologists trying to discover why this occurred and prevent it from happening again. Saltwater entered the freshwater canal going into the water plant. The level of chloride was so high they did not want to put it into the system. They shut production down at the plant and kept pumping to the city from the plant storage facilities. Mr. Webb said they thought they would be able to flush the solids out of the system rapidly, but they were not able to do so because of the tides. He said they have been successful in flushing the salt out of the canal, but on Saturday had to start pumping saltwater to the system. They pumped it back to a point where well water enters the system and were able to dilute it to an unnoticable degree. He said the chlorides that give the water a salty taste is not the issue; sodium is the issue. Mr. Webb said the sodium level never rose to a point of being a problem or a health issue. Relying heavily on the well system reversed the water flow and generated a lot of dirty water complaints. He said their response is that the water is safe, but clothing should not be washed in the water until it becomes clear. If it is not clear by Wednesday, they will begin flushing the lines heavily. The system is back up and lines can be flushed. Mr. Webb said that on Saturday morning while recovering from the transition and water returning to Minutes;9115M;Page 7 storage tanks, several 12 inch lines broke. They have no explanation for the breaks. Mr. Webb reiterated that the water is perfectly safe, and there never was a health issue. He said a written report of the happenings and areas of prevention to keep this from occuring again will be submitted by Friday and volunteered to answer questions. Mayor Moore complimented the service rendered by the Water Utilities Department during the drought in repair of broken lines and asked if this latest problem has had any economic impact for operation of the deparatment. Mr. Webb replied that there was a small amount of overtime required for this problem, but said overtime was substantial for repairing broken pipes during the drought. He said they averaged 12 breaks per day for a month. Mr. Webb said his employees did a fabulous job in restoring order to the water system, and Mayor Moore asked Mr. Webb to express appreciation to them for their hard work. *Public Comment (Persons are limited to 3 minutes) No one wished to comment. Mr. Allen Burch (4610 Barton Lane) addressed Council to complain about raw sewage running out of a manhole on Edson between the back of his house and 2165 (Edson) down the street into a catch basin. Mr. Burch complained of having plumbing problems created by this situation. Mr. Burch spoke of all the sewers in the area running full and requested assistance with the raw sewage. Mr. George Holiday, 2165 Edson, a neighbor of Mr. Burch, confirmed that there is a serious problem, and said it has happened in other areas near 21 st Street after heavy rains. Mr. Robert Williams, 1022 Evalon, addressed Council with complaints about overgrown grass in ditches that prohibit the flow of water. Mr. Williams reviewed conversations with Street and Bridge personnel, said four feet is too high for grass to grow, and stated that high grass creates a litter situation and becomes a breeding place for rodents. Mayor Moore explained the 48 inch rule to Mr. Williams. If a ditch is less than 48 inches deep, the property owner maintains the ditch, and the City assumes responsibility for mowing those deeper than 48 inches. EXECUTIVE SESSION *Executive Session in accordance with Section 551.071 of the Government Code to discuss contemplated or pending litigation: Heath Vaughn Enterprises v. City of Beaumont Zoning violation at 1-10 North and 3355 Gladys Ingrid Dunn v. City of Beaumont Minutes;9/15/98;Page 8 Mary Fusilier v. Jerry L. Trasher Lloyd Brooks v. City of Beaumont et al There being no further business, the meeting recessed at 3:48 p.m. to reconvene in executive session. Y �f Mayor David W. Moore Barbara Liming, Deputy Cit Clerk Minutes;9/15W;Page 9 TEXAS BILL COMPARISONS X` Entergy 1,000 KWH Residential -- August 1998 Southwestern Elec Service $47.99 M: Southwestern Public Svc $67.04 Southwestern Elec Power $72.87 Entergy Texas $73.22 West Texas Utilities $82.06 Central Power & Light $84:49 Texas Utilities Elec $84.86 ; Houston Light& Power :$87.32 Texas-N. Mexico Elec $96.45 El Paso Electric $109.50: $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 $110.00 $120.00 Source: PUCT EXHIBIT "A" TEXAS BILL COMPARISONS Entergy 1,000 KWH Residential -- August 1998 Southwestern Elec Service $47.99 ; $48.84 Entergy Texas Southwestern Public Svc 67.04 Southwestern Elec Power $72.87 West Texas Utilities $82.05 Central Power & Light $84.49 ; Texas Utilities Elec $84.86 Houston Light& Power :$87.32 Texas-N. Mexico Elec $96.45 El Paso Electric $109.50: $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 $110.00 $120.00 Source: DUCT and Entergy EXHIBIT "B" TEXAS BILL COMPARISONS Entergy 1,000 KWH Residential -- September 1998 Entergy Texas $48.84 Southwestern Elec Service $56.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 Source: Entergy *Based on information received by Southwestern Electric Service. Entergy bill information includes calculation of July 1998 PUCT ordered refund. EXHIBIT 11C.R1