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MIN NOV 12 1985 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD NOVEMBER 12, 1985 -- 5:30 P.M. BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in regular session this the 12th day of November, 1985, with the following present: HONORABLE: William E. Neild. Mayor G. Wayne Turner Councilman At Large Nell Pruitt Weisbach Councilman, Ward I Mike Brumley Councilman, Ward II Audwin Samuel Councilman, Ward III David W. Moore Councilman, Ward IV Absent: Joseph D. Deshotel Councilman At Large C. A. Shelton Interim City Manager Lane Nichols City Attorney -000- The Invocation was given by Dr. Claude Thomas, pastor of Calvary Baptist Church. The Pledge of Allegiance was led by Mayor Neild. -000- Two proclamations were issued: "American Education Week in Beaumont" - November 17-23, 1985 and "Community Education Day in Beaumont" - November 14, 1985. -000- Mrs. Maree Calcote, Chairman of the Clean Community Commission, presented a plaque to the Sanitation Division which reads: "To the Employees of the Sanitation Division of the Solid Waste Department, City of Beaumont, Texas, 1985; Charles Ross, Solid Waste Director; Dalton Domingue, Assistant to the Director: In appreciation for a Job well done in making Beaumont a Clean Community. Presented by the Clean Community Commission of the City of Beaumont." Mrs. Calcote continued: "Dalton, we hope you will display that and we want to say again now very, very pleased we have been with the City Departments and how well they have cooperated with our Commission in trying to make this a cleaner City and we want the help of all the citizens, also." Mr. Domingue: "On behalf of the Solid Waste Department, I would like to accept this honor and challenge each and every one of you to support your Clean Community Commission in an effort for a cleaner Beaumont. Thank you, very much." -252- November 12, 1985 The following Consent Agenda items were considered: Approval of the Minutes of the regular City Council sessions held October 15, October 22 and November 5, 1985; Resolution 85-387 authorizing the pledge of $885,715.00 by Fidelity Savings, $700,000.00 by Spindletop Savings and $400,000.00 by MBank - Beaumont and the release of $904,917.51 by Spindletop Savings in securities used as collateral for City deposits; Resolution 85-388 appointing Harvey Smith to the Senior Citizens Advisory Committee, term to expire September 30, 1987; Dr. Herman Gerhardt to the EMS Commission, term to expire February 28, 1987; Rick Canady, Harvey Johnson, Jr. , Beverly Hatcher and Craig Boutte, to the Community Development Block Grant Citizens Advisory Committee,' terms to expire May 31 , 1987; and reappointing Kenneth Bartos to the Senior Citizens Advisory Committee, term to expire September 30, 1987; Resolution 85-389 authorizing purchase of a 2-ton electric chain hoist for use by the Water Production Division from Plowden Supply Company at $1,161 .95; and Resolution 85-390 authorizing execution of a contract with Terminix Termite and Pest Control at $1,188.00 for pest control at the Health Department buildings (Annex A & B, Community Health Clinic and the Animal Shelter). The Consent Agenda was approved on a motion made by Councilman Brumley and seconded by Councilman Turner. Question: Ayes: All Nayes: None -000- No one wished to address City Council on Agenda items 2 through 7. -000- Mayor Neild opened the public hearing to consider the request by Entex for a rate increase: Mr. R. L. DeSalm, Beaumont District Manager of Entex, introduced other Entex representatives: Messrs. Pat Killingsworth, District Operations Manager in charge of construction and maintenance for the Beaumont District; Tom Boudreaux, Senior Vice President in charge of rates and corporate planning; Guy Dawkins, Vice President and Division Manager; and Wayne Stinnett, Vice President of the Rate Department. Mr. DeSalm summarized items listed in a booklet concerning the rate increase, copies of which were previously furnished to Council, City Manager and City Attorney: Entex's rate increase request was filed on September 10th; on September 17th, Council approved a resolution suspending the rate increase for 90 days, changing the effective date to January 13, 1986; and the City retained the firm of Pollans & Cohen as rate consultants. He said Entex is requesting an increase of $1,609,000 or approximately 8.7 percent, using the period June, 1984 to June, 1985 as the 12-month test period, which, if granted, would increase the bills by approximately $3.66 per month to residential customers and slightly higher for small and large commercial customers. -253- November 12, 1985 Mr. DeSalm said, "We are allowed by law to earn a Fair Rate of Return on our invested capital. Our invested capital in the City of Beaumont is $11,099,100.00 and our current Rate of Return through June of 1985 was between 6.8 and 8 percent and I can assure you that you take your embedded debt cost and return on equity - this is a very low rate of return for our Company and I am saying this in a constructive way. It is one of our lowest rate of returns in the State of Texas that we have in our Districts and we are trying to do everything we can to keep our increases very reasonable and, again, fair to our customers and to our Company. After the increase, if the full amount is or was granted, this would change our Rate of Return on our invested capital to approximately 13-1/2 to 14 percent and this means you take your invested capital which is the money we have invested in this Distribution System and we would have around 13-1/2 to 14 percent return on that invested capital which is certainly well within the rate structure going on in the State of Texas at this particular time." Mr. DeSalm said the reason for the rate request is that there was an increase of $1,408,931.00 in Entex capital in Beaumont for the 12-months' period which was used to improve the Distribution System in the City: $600,000 was used to replace an old cast iron system constructed between 1912 and 1940 which has deteriorated to the point that unaccounted-for gas was between 15 and 18 percent, cost of which was passed on to consumers (replacement estimated to cost between $8.0 and $10.0 million over a 10-year period - Company now in its fifth year of replacement program) ; $203,000 was spent for relocation or replacement of lines required by State, City and Federal projects; $67,877 for relocation of the City Gate Station; $113,000 used for a compressed natural gas system (35 gasoline-powered vehicles were converted to use compressed natural gas, with a 4-1/2 to 5-1/2 year pay-back on that investment with use of compressed natural gas equating to $0.70 per gallon); $290,000 used to install lines to serve new customers; $109,000 used for new vehicles; $1,120 for new office equipment; $8,452 for power-operated equipment; $11,128 for remodeling of the office and $1,041 for miscellaneous tools, etc. In addition, Mr. DeSalm told Council that "since January, 1985 - the last ten months, we've had three rate reductions . . . our fuel costs from our pipeline companies reduced their costs to Entex." He said three reasons caused this: supply and demand; partial deregulation of gas at the wellhead in 1985; and renegotiation of gas contracts. He said: "Since January of this year, we've had three reductions: we had a reduction in January, 1985; we had a reduction in May, 1985; we had a reduction in August of 1985. All three of these reductions, equal based on a 6,000 cubic foot bill, equals a reduction of $4.26 per month. Even if we are granted the full $3.66 a month, our customer will be paying $0.60 per month less for gas right now that what they were some 7 or 8 months ago. " No citizens wished to address Council concerning the Entex rate increase request. Mayor Neild declared the public hearing closed. -254- November 12, 1985 Hr. Forrest F. Posey, 3595 Edmond, addressed Council to commend the unity of Council and to offer his services as an RSVP (Retired Senior Citizen Volunteer). -000- Ordinance No. 85-111 canvassing the votes of the Special Election held on November 5, 1985 (23,419 votes cast in the 40 boxes, including Absentee, in the City of Beaumont) was considered: ORDINANCE NO. 35-111 ENTITLED AN ORDINANCE CANVASSING THE RETURNS OF THE ELECTION MELD IN THE CITY OF BEAUMONT ON THE 5TI DAY OF NOVEMBER 5, 1985. All seven City propositions were defeated: 1. An ordinance changing the name of Martin Luther King,, Jr. , Parkway and other streets back to the original names; 2. An ordinance changing the name of College Street to Martin Luther King, Jr. Boulevard; 3. Shall William B. Neild be removed from the office of Mayor by recall? 4. Shall G. Wayne Turner be removed from the office of Councilman by recall? 5. An ordinance repealing Ordinance 83-122 establishing rates for garbage and trash collection; Ordinance 84-127 amending water and sewer rates; and Ordinance 84-129 providing sanitation fees and regulations. 6. An ordinance providing that no city employee shall receive a rate of pay in excess of $40,000 per year for the next five (5) years; and 7. An ordinance establishing the Beaumont Minimum Wage Law of 1985 which will bring the Minimum Wage in the City to $4.10 per hour. The ordinance was approved on a motion made by Councilman Moore and seconded by Councilman Brumley. Question: Ayes: All Nayes: 'None -000- Resolution X35-391 consenting to capital improvements at St. Elizabeth Hospital and the issuance of bonds by the Harris County =Health Facilities Development Corporation to refinance such improvements was approved on a motion made by Councilman Moore and seconded by Councilman Brumley. Question: Ayes: Ali Mayes: None -000- Ordinance No. 85-112 authorizing the issuance of $6.7 million in refunding bonds of the Waterworks and Sewer System Certificates of Obligation sold to the Texas Water Development Board was considered: ORDINANCE NO. 85-112 ENTITLED AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF $6.7 MILLION OF COMBINATION TAX AND REVENUE REFUNDING BONDS, SERIES 1935-A TO REFUND $6.65 MILLION IN WATERWORKS AND SEWER SYSTEM CERTIFICATES OF OBLIGATION, SERIES 1985; AUTHORIZING REDEMPTION PRIOI TO 1ATUAITY OF CERTAIN OBLIGATION. -255- November 12, 1935 The ordinance was approved on a ,notion made by Councilman Brumley and seconded by Councilman Turner. Question: Ayes: All Nayes: 'None -000- An ordinance setting a public hearing on gulf States Utilities Company's current alectr:ic rates to be held at 4:00 p.-n. , December 3, 1985, in the Civic Center of the City of Beaumont, Texas, was considered: AN ORDINANCE ENTITLED AN OR DP_VANCE SETTING A PUBLIC HEARING FOR THE PURPOSE OF DETERMINING WHETHER THE RATES CURRENTLY BEING CHARGED FOR ELECTRIC UTILITY SERVICE BY GULF STATES UTILITIES COMPANY IN THE CITY OF BEAUMON'T, TEXAS ARE .JUST AND REASONABLE AND 'TO DETERMINE JUST AND 6EASONABLE RATES TO BE CHARGED BY SAME UTILITY COMPANY. The ordinance was deferred on a motion made by Councilman Brumley and seconded by Councilman Weisbach. Question: Ayes: All Mayes: None -000- Resolution 35-392 authorizing Change Order No. 1 to the contract with BRH- Garver, Inc. for Contract 11 and Contract 17B for adjustment of as-built quantities, "field changes" and an increase in contract time by 27 days due to poor weather conditions and authorizing final payment of $133,320.79 to the contractor for construction of sanitary sewer improvements to facilitate separation of the combined sewer system and to construct a 17 million gallon per day lift station and 2,667 feet of force main (total contract to $2,114,091.12) was approved on a motion made by Councilman Turner and seconded by Councilman Weisbach. Question: Ayes: All Nayes: None -000- (Councilman Brumley left session before considaration of next item. ) Resolution 35-393 authorizing execution of an agreement with the Urban `lass 'Transportation Administration for Section d transit planning funds (Unified Worst Progra,n for TORTS Multimodal Transportation Planning) for fiscal year 1936 was approved on a motion made by Councilman Samuel and seconded by Councilman Turner. Question: Ayes: All Nayes: None -000- -256- November 12, 1935 (Councilman Brumley returned. ) k resol'l tion ?.uthorizing 3 contributiOn to t1le? ;;Oils for !)-nu!mont- F�IS'� FOF, 0 was removed from the agenda before consideration on a motion made by Council man Moore and seconded by Councilman Brumley. Question: Ayes: All Nayes: None -000- Mr. Jerry Wright, 6020 Pinkstaff, addressed Council to commend the Emergency Medical Services (EMS) as operated under the direction of the Eire Department and to suggest rates be increased for users and better collection methods for bills due be sought but strongly urged Council not to contract out the EMS Service. Mr. Wright asked that, should Council decide that contracting out the system seems best, that the issue be placed on the April ballot for citizens to decide the issue. Dr. Jim Barbee, 6985 Sheraton, presented a petition containing approximately 4500 signatures which reads: "This petition is to serve as notification to the Beaumont City Council that the undersigned citizens of Beaumont strongly support our present Emergency Medical Service. It is our sincere hope that the City Council will not vote to or attempt to contract EMS to any other entity. Presently, this city department works efficiently and cost effectively to provide the citizens of our city immediate and lifesaving medical care. We furthermore do not believe a private enterprise could honor a contract with the city to provide medical care of equal quality. We strongly disagree with and refuse to support such an action from the Council. We cannot conceive our city's leadership not recognizing and acting on its moral obligation to their citizens." Dr. Barbea also presented letters from each of the three (3) Hospitals in the City supporting the EMS System as it is presently run and urging Council not to contract out the services: Beaumont Medical and Surgical Hospital - signed by emergency room physicians L. V. Leboeuf, M. D. , Todd August, M. D. and Leroy Foster, M. D. ; Baptist 'lospital - signed by emergency physicians Pudy T. Douthat, M. D. and John Mayo, M. D. and St. Elizabeth Hospital - signed by Earl Johnson, M. D. , Herman Gerhardt, M. D. and Herbert Loyd, M. D. Dr. Mark Wilson, 7025 Blarney, past Emergency Physician now in private practice; Lindsey Walker, 3125 Evangeline; Dr. .John 11ayo, Baptist Hospital Emergency Physician; JoAnn Stewart, 820 Evergreen; and Cindy Purnell, 5685 Indian Trail; all addressed Council to speak against contracting out the EMS services. Mrs. Marie dubbard, 1990 Nora, addressed Council to ask Council to "consider one of our own Beaumont residents to fill they position" of City Manager and urged Council to consider Interim City Manager C. A. Shelton for the position. C. L. Sherman, 585 Belvedere, addressed Council to urge that Council continue to study the issues of EMS, that rates be .increased to a more realistic level and that better collection methods for payments due be sought. -257- November 12, 1935 Mr. Steve Diamond, Diamond EMS, 3030 39th Street, Port Arthur, addressed Council to urge that he be allowed to contract the City's EMS System, saying that he could provide the same level of service. -000- Mayor Neild welcomed Boy Scouts Damien Giglio, Roy Phillip and Frank Domino to today's session. The Scouts are working; toward their Community Merit Badges. -000- Councilman Turner reassured citizens that no decisions have been rnade concerning the EMS system. 'tie said Council is to discuss the item in Workshop next Tuesday after reviewing an indepth report for the issue. Councilman Samuel concurred with comments made by Councilman Turner, especially concerning the Council's duty to evaluate any City operation, but did say "I am convinced this is a service we have to provide. " Councilman Moore, Council's liaison to the EMS Commission, briefly told of some areas of concern of the Commission included in the report for more aggressively collecting fees and cutting costs for operation and he commended the Commission for the amount of time given to the matter. Mayor Neild mentioned that the EMS Commission is made up of two (2) representatives from each of the three (3) Hospitals, one (1 ) representative from private ambulance service and Elmer Embs, Chairman of the Commission, is from Industry, and Councilman Moore is the City Council's liaison. -000- There being no further business, the meeting was adjourned. -000- I, Rosemarie Chiappetta, 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 November 12, 1985. Rosemarie Chiappetta Deputy City Clerk -258- Nov?tuber 12, 1935