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HomeMy WebLinkAboutMIN JULY 24 1990 REGULAR SESSION CITY COUNCIL CHAMBERS HELD JULY 24, 1990, 1:15 P.M. BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in regular session this the 24th day of July, 1990, with the following present : HONORABLE: Evelyn M. Lord Mayor Andrew P. Cokinos Mayor Pro Tem Councilman At Large Brian R. Alter Councilman At Large Lulu L. Smith Councilman, Ward I Guy N. Goodson Councilman, Ward II Audwin Samuel Councilman, Ward III David W. Moore* Councilman, Ward IV Ray A. Riley City Manager Lane Nichols City Attorney Barbara Liming Deputy City Clerk *Councilman Moore arrived at 1 :18 p.m. during the announcement of Councilman Smith' s appointment . -000- The Invocation was given by the Reverend J. B. Carlock, Associate Pastor at New Life Tabernacle. The Pledge of Allegiance was led by Councilman Goodson. -000- Mayor Lord announced that Councilman Smith was elected president of Region 6 of the Texas Municipal League at the meeting conducted last week in Livingston and congratulated her for receiving this honor. -000- Citizen comment was invited on the Consent Agenda and Main Agenda Items 4 - 11 . No one wished to address these items. -000 Mayor Lord recognized Richard Bonnin, a reporter for the Beaumont Enterprise, and expressed ner regret that he will be leaving Beaumont and that today will be the last Council meeting he will cover. She said, "Richard has been very fair, very open-minded, and more than that-- a very caring citizen of our city. " She wished him good luck in his career and move to Austin. Mr. Bonnin replied, "It' s been a pleasure -178- July 24 , 1990 covering such dedicated professionals . I certainly will miss Beaumont . " -000- Councilman Goodson asked that Consent Agenda Item G awarding a contract for furnishing ready mix concrete be separated and voted upon individually due to a possible conflict of interest . He said his law firm acts as counsel to American Builders Concrete Company. The following Consent Agenda items were considered: Approval of the Minutes of the regular City Council session held July 10, 1990; Resolution No. 90-141 appointing Dr. Bruce Drury to the Parks and Recreation Advisory Committee for a term expiring June 30, 1992; Charles M. Ireland to the Plumbing and Mechanical Board of Review for a term expiring May 31, 1992 ; Elbert DuBose, Jr. for a term expiring June 30, 1992, and Terry Williams and Thomas F. Jones for terms expiring June 30, 1991, to the Transit Advisory Committee; and Doris Price-Nealy to the Beaumont Advisory Commission for Prevention of Child Abuse and Neglect for a term expiring June 30, 1992; and confirming the appointment of Elbert DuBose, Jr. as chairman and Terry Williams as vice- chairman of the Transit Advisory Committee for terms expiring June 30 1991; Resolution No. 90-142 authorizing the purchase of uniform shirts (102 men' s long sleeve shirts, $21 . 84 each, $2 , 227 . 68 ; 40 women' s long sleeve shirts, $21 . 84 each, $1, 048 . 82; 138 men' s short sleeve shirts, $19 . 78 each, $2, 729 . 64 , 40 women' s short sleeve shirts, $19 . 78 each, $791 . 20) and trousers (270 at $22 . 38 each, $6, 042 . 60) for the Police Department from R and R Uniforms for a total bid of $12, 839 .44; Resolution No. 90-143 approving the sale of a 44 .4 x 120 foot lot at 2950 Virgil Street, described as Lot 8, Block 1 of the Lone Star Addition, acquired in 1977 through foreclosure for taxes owed to the City, Jefferson County and the Beaumont Independent School District, to Dent Walker and wife, Elsie Walker, in the amount of $1, 300 . 00 ; Resolution No. 90-144 authorizing purchase of an 18-foot, step-side van from Kinsel Pontiac-GMC in the amount of $24, 383 . 00 for use by the Fire Department' s underwater rescue team and to be operated out of Station No. 2 ; Resolution No. 90-145 authorizing purchase of two Jacobsen Model C417D tractor mowers for the Parks Department from Watson Distributing Company in the amount of $15, 978 . 00 ($7, 989 . 00 each) ; and Agenda Items B through F of the Consent Agenda were approved on a motion made by Mayor Pro Tem Cokinos and seconded by Councilman Moore. Question: Ayes : All Nayes : None -179- July 24 , 1990 Resolution No. 90-146 (Agenda Item G of the Consent Agenda) authorizing an annual contract to purchase approximately 1, 000 cubic yards of ready mix concrete for use chiefly for maintenance and repair of streets and catch basins from American Builders Concrete, Inc. in the amount of $49 .45 per cubic yard for five-sack cement mixture plus or minus $3 .20 per sack for other mixtures was approved on a motion made by Mayor Pro Tem Cokinos and seconded by Councilman Alter. Question: Ayes : Mayor Lord Nayes: None Mayor Pro Tem Cokinos Councilman Alter Councilman Smith Councilman Samuel Councilman Moore Abstention: Councilman Goodson -000- Ordinance No. 90-38 authorizing an amended specific use permit to allow Helena Laboratories Corporation to construct a two-story 56, 400 square foot warehouse in the rear of its manufacturing plant on a 5 . 5 acre tract at 3795 Washington Boulevard in an area zoned GC-MD (General Commercial-Multiple Family Dwelling) as requested by Tipton Golias, president of the corporation, who said the warehouse would be built in two phases with the 28, 200 square foot first phase scheduled for this construction this year, was considered: ORDINANCE NO. 90-38 ENTITLED AN ORDINANCE ISSUING A SPECIFIC USE PERMIT TO ALLOW CONSTRUCTION OF A TWO-STORY 56,400 SQUARE FOOT WAREHOUSE AT THE REAR OF 3795 WASHINGTON BOULEVARD, BEAUMONT, JEFFERSON COUNTY, TEXAS. After a brief discussion regarding proximity of the construction to Fire Station No. 10 and the need for safety measures, Ordinance No. 90-38 was approved on a motion made by Councilman Moore and seconded by Mayor Pro Tem Cokinos . Question: Ayes : All Nayes : None -000- Ordinance No. 90-39 authorizing a zoning change from RM-H (Residential Multiple Family - Highest Density) to NC (Neighborhood Commercial for Lots 1, 2 and 3 , Block 37, Dowlen West Addition, Unit 19, on the south side of Gladys Avenue in the 8100 Block, to permit the property to be offered for retail sales or other business uses as requested by Don Streety owner of the property, with a recommendation from the Planning Commission, after conducting a Public Hearing on July 16, to grant the -180- July 24 , 1990 zoning change for Lots 1 and 2, but deny the change to NC for Lot 3 since the nursery business to whom the Specific Use Permit was granted is now closed, was considered: ORDINANCE NO. 90-39 ENTITLED AN ORDINANCE AMENDING CHAPTER 30 OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS, AND IN PARTICULAR THE BOUNDARIES OF THE ZONING DISTRICTS AS INDICATED UPON THE ZONING MAP OF BEAUMONT, TEXAS, BY CHANGING THE ZONING FROM RM-H (RESIDENTIAL MULTIPLE FAMILY DWELLING - HIGHEST DENSITY) TO NC (NEIGHBORHOOD COMMERCIAL) ON PROPERTY DESCRIBED AS LOTS 1, AND 2, BLOCK 37, DOWLEN WEST ADDITION, UNIT 19, LOCATED IN THE 8100 BLOCK OF GLADYS AVENUE, BEAUMONT, JEFFERSON COUNTY, TEXAS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. On a motion by Councilman Smith, seconded by Councilman Alter, Ordinance No. 90-39 was approved and amended to accept the Planning Commission' s recommendation to approve a zoning change from RM-H Residential Multiple Family - Highest Density) to NC (Neighborhood Commercial) for Lots 1 and 2, Block 37, Dowlen West Addition, Unit 29 . Question: Ayes : All Nayes : None -000- Ordinance No. 90-40 authorizing a change in zoning from LI (Light Industrial) and GC-MD (General Commercial--Multiple Family Dwelling) to CBD (Central Business District) for about 19 . 8 acres, extending from Main to Park and including the five lots fronting on the northwest side of Milam between Park and Neches was considered: ORDINANCE NO. 90-40 ENTITLED AN ORDINANCE AMENDING CHAPTER 30 OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS, AND IN PARTICULAR THE BOUNDARIES OF THE ZONING DISTRICTS AS INDICATED UPON THE ZONING MAP OF BEAUMONT, TEXAS, BY CHANGING THE ZONING FROM LI (LIGHT INDUSTRIAL) AND GC-MD (GENERAL COMMERCIAL MULTIPLE-FAMILY DWELLING) TO CBD (CENTRAL BUSINESS DISTRICT) ON PROPERTY DESCRIBED AS 19 . 8 ACRES OF LAND (8 BLOCKS) IN THE ORIGINAL BEAUMONT TOWNSITE LOCATED BETWEEN MAIN STREET AND TRINITY-NECHES, BOUND FROM EITHER SIDE OF MILAM TO BLANCHETTE, BEAUMONT, JEFFERSON COUNTY, TEXAS; PROVIDING FOR SEVERADILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. -181- July 24 , 1990 Ordinance No. 90-40 was approved on a motion made by Mayor Pro Tem Cokinos and seconded by Councilman Moore. Question: Ayes: All Nayes : None -000- Resolution No. 90-147 authorizing the City Manager to apply for a local matching grant in the amount of $190, 000 from the Texas Parks and Wildlife Department in the form of a Land and Water Conservation Fund Grant or a Texas Local Park, Recreation and Open Fund Grant for development of Lefler Community Park was approved on a motion made by Councilman Alter and seconded by Councilman Smith. Question: Ayes : All Nayes : None -000- Resolution No. 90-148 adopting a new uniform tax abatement policy for manufacturing industries consistent with policies adopted for Jefferson County, the Beaumont Independent School District and other taxing entities in the county by providing abatement of a portion of taxes on the value added to the property of manufacturing industries by improvements constructed under tax abatement contracts was approved on a motion made by Councilman Moore and seconded by Councilman Alter. Question: Ayes: All Nayes : None -000- Resolution No. 90-149 authorizing the City Manager to apply to the State Department of Highways and Public Transportation under the FY91 Highway Safety Improvement Program - Hazard Elimination System for a grant to finance 90 percent of the cost of improvements for two high accident frequency locations (construction of dedicated left-turn lanes for north- and south-bound traffic at Fourth and Corley and modification of the median opening in the 3900 Block of Phelan Boulevard to allow left turns into adjacent property while prohibiting crossing movements) at an estimated total cost of $70, 000 was approved on a motion made by Councilman Moore and seconded by Mayor Pro Tem Cokinos. Question: Ayes : All Nayes : None -000- Ordinance No. 90-41 amending Chapter 26, Section 26-23 of the Code of Ordinances to establish speeds on Laurel Street : (A) from the centerline of Magnolia Street to the centerline of Eleventh Street traveling west at 35 miles per hour; and (B) from the centerline of Eleventh Street to a point 70 feet west of the centerline of Fourteenth Street traveling east and west at 35 miles per hour was considered: -182- July 24 , 1990 ORDINANCE NO. 90-41 ENTITLED AN ORDINANCE AMENDING CHAPTER 26, SECTION 26-23 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT TO ESTABLISH MAXIMUM AND MINIMUM SPEEDS IN CERTAIN ZONES; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. Ordinance No. 90-41 was approved on a motion made by Councilman Moore and seconded by Mayor Pro Tem Cokinos. Question: Ayes : All Nayes : None -000- Resolution No. 90-150 appointing Coopers and Lybrand as independent auditors based on their past performance in an exemplary manner for the City of Beaumont for Fiscal Year 1990 at a cost of $102, 000 was approved on a motion made by Councilman Moore and seconded by Councilman Samuel . Question: Ayes : All Nayes : None -000- Resolution No. 90-151 authorizing a one-year contract for litter removal and grounds maintenance (removal of litter and trash from curbs, sidewalks and gutterlines along downtown streets three days each week, mowing of medians and spaces between sidewalks and curbs once each week during the growing season and once a month during the off season) in the Central Business District to Alamo Lawn Service in the amount of $2, 300 . 00 per month plus $500 . 00 per month for maintenance of 66 litter receptacles (furnishing and installing plastic liners in the receptacles and removal and disposal of liners as necessary) to be placed in the downtown area was approved on a motion made by Councilman Moore and seconded by Councilman Alter. Question: Ayes : All Nayes : None -000- A Resolution authorizing a contract for asphalt overlay resurfacing for some 34 miles of arterial and collector streets in all parts of the community in the Major Street Rehabilitation Program (Calder--Main to 45th, 11th to 14th; Seventh; Cartwright; College; Fourth; Grand; Irving; Magnolia--IH-10/Laurel, Leight/Lucas; Neches--Crockett/College, College/Blanchette; North; Orleans; Pearl; Stagg; Trinity-- Franklin/College, College/Fannin; Virginia; Washington--Southern Pacific Railroad/4th, 4th/11th; Avenue A; Bigner; Blanchette; Bowie; Bristol-- Rosine/Hampton, 23rd/Rosine; Callaghan; Delaware--Pine/Magnolia, 11th/Magnolia, 11th/Eastex; Eleventh--Washington/Fannett, Smart/Hollywood; Fannin--Pearl/M.L. King, 4th/11th; Florida; Gladys-- Nottingham/Dowlen, Edson/Nottingham; Gulf; Helbig; Langham-- Calder/College, College/Washington; East Lucas; Milam; Montrose; Pine; -183- July 24 , 1990 Seventh; Tram; Twenty-Third--Harrison/Calder, Calder/Phelan; Walden-- 1390' East of I-10 to Fannett, 2810' West of IH-10 to Major Drive; and Washington) with The Porter Company, Inc. , of Henderson in the amount of $2,142, 769 . 00 with eighty-Light percent (88%) subcontracted to Tri-Tex Paving of Beaumont, a certified Minority Business Enterprise (MBE) contracting company was considered: After discussion expressing concerns about the Tri-Tex owner being related to a party involved in a previous law suit against the City, the incorporation and length of establishment of Tri-Tex, subcontractor limits of participation in contracts, reliability and capability, and not purchasing construction materials locally, Councilman Alter made a motion to table action, but the motion died for lack of a second. After further discussion including lowest and best bids, time factors relative to construction, time elements and related factors in rebidding, bid specifications, and integrity of the Minority Business Enterprise Program, a motion by Councilman Samuel, seconded by Councilman Moore, to reject all bids and rebid the project was approved. Question: Ayes : All Nayes : None -000- Resolution No. 90-152 authorizing a contract for the recycling and repaving of 20 sections of asphalt streets (Corley, Houston to M. L. King; Sabine Pass M. L. King to Harriot, Blanchette--Neches to M. L. King, Victoria to Avenue C; Franklin--Orange to 4th, Johns to Main; Avenue A--College to Washington, Elgie to Washington, Fillmore, Magnolia to Harding; East Lucas, Eastex to Magnolia; Delaware, Eastex to West Lucas; 11th--IH-10 to Smart, Hollywood to College; McFaddin, 11th to M. L. King, Gulf, IH-10 to North; Magnolia, IH-10 to Leight; Pine, Liveoak to IH-10; Calder, Phelan to Marceline/Long to Phelan; 4th, Calder to Fannett and Park, North to College) in the Major Street Rehabilitation Program with Cutler Repaving, Inc. , of Lawrence, Kansas, in the amount of $1, 226, 186 . 85 was approved on a motion made by Councilman Moore and seconded by Councilman Samuel . Question: Ayes : All Nayes : None -000- Mr. Forrest "Ted" Posey, 3695 Edmonds, addressed Council to expound upon their leadership being the hope for continued success of love and understanding in Beaumont, and said while he is visiting in Denver, he will relay the news that Beaumont is moving forward and upward. Mr. Henry Dannenbaum, 1567 Wall Street, addressed Council to pay tribute to Anne Rogers Vaxler, Steven Garner (Music Director of the Inter-Faith Choir) , Michael Brumley, Marilyn Adams, Dr. Roger Pricer, Police Chief George Schuldt, Fire Chief Pete Shelton, Mrs . Delia Harrington, Maree Calcote, and Kirt Anderson for their influence in his life. Mr. Troy Dodson, Jr. (no address given) , representing Tri-Tex Paving and Construction, addressed Council regarding Agenda Item No. 10 . Mr. -184- July 24 , 1990 Dodson arrived after Council action on the item. Mr. Dodson stated that Tri-Tex will not be responsible for ninety percent (90a) of the work in the overlay resurfacing. He said their portion of the contract would be $350, 000 to $400, 000, and that the Porter Co. will be furnishing and trucking the hot mix asphalt to the job, another sub-contractor will also be used, and that perhaps there was an error in filling out Schedule C. He asked if the sub-contractor percentage was the reason for rejection of the contract . For expediency, Mr. Dodson was advised to consider listening to the tape of the Council meeting or read the Minutes . Councilman Samuel volunteered to speak with Mr. Dodson regarding his concerns . -000- Councilman Alter congratulated Councilman Smith on being elected President of the Texas Municipal League and said, "that' s real pride for Beaumont . " Councilman Cokinos commented that the meeting held at the Virginia Village Apartments was very informative, people are very concerned about their living conditions, and the meeting was very productive. Councilman Moore said he was out out town and unable to attend the neighborhood meeting, but thanked members of Council who did attend, and said he knew residents were very appreciative of their attendance. Councilman Moore asked City Manager Riley if financial assistance could be given for maintenance of the cemetery property on Hegele Street . He said it is beyond volunteer maintenance and is an eyesore to the community. Mr. Riley said this problem could possibly be discussed in a Workshop Session as a special item in discussing the Community Development Program. Councilman Samuel asked if consideration is being given to reopening the restrooms at Magnolia Park and if work has begun on the public boat ramp on Pine Street . Councilman Smith announced the next "Sunday in the Park" will be August 12th with Councilman Moore reading for the children. Councilman Smith added her compliments for the neighborhood complex meetings and the rapport between the tenants, the Police Department Personnel, apartment management, and the City which has created a good working relationship. She said the residents have begun to realize the importance of their input, and it is an excellent program. Councilman Moore again thanked Council for their participation in the neighborhood meetings, recounted a pledge to rid Virginia Village of drugs in forty-five (45) days, and recognized the four groups mentioned by Councilman Smith for making the program so successful . Councilman Cokinos congratulated Lt . Ray Beck for his leadership in working with the program. -185- July 24 , 1990 Y Mayor Lord said the neighborhood meeting was very up-beat, and that was very heartening after some of the experiences those residents have suffered, applauded Councilman Moore and Councilman Samuel for the appreciation and confidence they have gained from the residents, and said that so much progress has been made that Virginia Village has been taken off the POP (Problem-Oriented Policing) program. Also, Mayor Lord relayed receiving many concerned calls regarding sanitation and the dog pictured drinking from a water fountain at Riverfront Park on the front page of the Beaumont Enterprise and asked the City Manager to investigate the feasibility of constructing a drinking trough for dogs . -000- There being no other business, the meeting was recessed before continuing with the Workshop Session in the Executive Conference Room on the third floor. -000- I, Barbara Liming, 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 July 24 , 1990 . Barbara Liming Deputy City Clerk -186- July 24 , 1990 EXCERPT FROM REGULAR CITY COUNCIL SESSION HELD JULY 24, 2990 CITY MANAGER RAY RILEY: Our tenth item is, I guess we'd probably say, it's more or less the commencement rather than the completion of a year-long planning program in which time funds have been made available to the City through the Street User Fee for purposes for street rehabilitation, reconstruction and major maintenance facilities. We had gone out for bids for the major part of the overlay contract for the Major Street Rehabilitation Program this past month and we received three bids, all of which were lower than our original estimates. We come to you today with the three bids, that of Porter Company, Bo-Mac and APAC ranging from the low of $2, 142,769 to a high of $2, 319, 156, all of which were below our original estimates. We feel like we have received three excellent financially very satisfactory bids. The low bid is that of the Porter Company. Porter' s located in Henderson, Texas. The information which is attached to you agenda gives the background of the information related to the Porter Company and that for the most part I believe almost eight-eight (88%) percent of the work will be subcontracted to Tri-Tex which is a local contractor. So, the information concerning the Porter Company which is not in my understanding have had contracts with the City in the past though has done extensive work in other districts and we have checked with the highway . . . the State Department of Public Highways and Transportation in the districts in which Porter has been involved. Obviously, he will not be involved other than as a general contractor and the subcontractor will be that of Tri-Tex and the persons involved then will in effect be responsible to the general contractor and all of the . . . in other words, the Performance Bond, the Bid Bond, is all done by the general contractor and in reviewing all of the information available to us, it would appear as if the lowest and best bid is that of the Porter Company in the amount indicated of $2, 142, 000 and we do recommend the acceptance of the low bid for this contract. MAYOR EVELYN M. LORD: Are there any questions on this item? COUNCILMAN AUDWIN SAMUEL: Yes, I . . . I 'd like to give some comment. Tom, I 'm very concerned about not only the work of the subcontractors but I am concerned about the possibility of, you know, we've had problems of . . . we've been concerned about front organizations as being MBEs and I do see from the letter that you submitted to the Manager that you had someone to go out and visit with . . . was it Tri-Tex? Yeah, Tri-Tex concerning this. And, this is something that really bothers me. We've been involved with a lawsuit with . . . . . . EXCERPT FROM REGULAR CITY COUNCIL SESSION HELD JULY 24, 1990 Page 2 COUNCILMAN BRIAN ALTER: Tri-Tex? COUNCILMAN SAMUEL: No, not with Tri-Tex. Tri-Tex is owned by the sister of this company that we had a lawsuit with. MAYOR PRO TEM ANDREW P. COKINOS: Troy Dodson . . . COUNCILMAN SAMUEL: . . . Troy Dodson. And, you know, it concerns me when I see a family member now taking on the ownership of another company and I am looking at 88% of the work is being done by them and I do understand that the brother is going to be the superintendent for that . . . for Tri-Tex. So, give me some clarification, make me feel comfortable with it because at this point I am very concerned. I don't know where we stand legally, but I am very concerned about this. Do you feel comfortable that it is not a front organization? MR. TOM WARNER DIRECTOR OF PUBLIC WORKS: Councilman, the certification went through Employee Relations. Public Works has removed itself from the investigation of the MBE firms and that's all handled through the Employee Relations. In looking at the application that was filed, one hundred (100%) percent of the ownership of the company is to Mrs. Taylor. She has had experience in the construction area. She is active in the company. From that basis, I would have to say is that she is the minority owner and is active in the company. I 'm not sure of all the other aspects that are looked at as far as the qualification by Employee Relations but I can surely look into that and get back to you. COUNCILMAN SAMUEL: Okay, one question . . . you know, one of my main questions is how long has the company been incorporated or established. Do you know? MR. WARNER: It's been less than a year. EXCERPT FROM REGULAR CITY COUNCIL SESSION HELD JULY 24, 1990 Page 3 COUNCILMAN SAMUEL: You know, I 'm very excited about the project itself and . . . but, I don't have a good feeling about this. The company has been in existence less than a year. The company is owned by the brother . . . owned by the sister of someone that we've had a lawsuit with. I just don't have a good feeling about this. MAYOR LORD: I think you had some questions . . .? COUNCILMAN GUY GOODSON: Mayor. . .I don't have experience on the Council but I have had the privilege of working for a couple of small utility districts in cities where we've had some disappointing experiences with broken agreements, too, and I join with Councilman Samuel in being concerned. I have no particular concern about this contractor but I do notice from the detail work that the City has done that the contractor is also in a position now not to even own all of the facilities including an asphalt plant which I understand he would need to acquire in order to complete the project and I certainly am not saying that Porter is not capable and I don't know if a representative of Porter or Tri-Tex is here today but I. . . I have nothing but the City's recommendations to go by on Porter and they seem to have a long background in handling projects and broker contracts are not uncommon. They just are not always the best. I, at least from my limited experience and that has to do with subcontractors coming and leaving local materialmen and suppliers holding the bag and then the contractor then saying "deal with my primary sub. You are not dealing with me. " And, then the City gets unfortunately brought into that debacle of having to address local suppliers who are having trouble with the under. . .I don't want to say poorly financed but it may be that the word is under- financed primary sub and they may have a great deal of experience but it looks to me like they are probably going to be creating the organization to do this project with rather than having the infrastructure already in place and that does concern me. I know we can't address it perhaps in this Council but. . .and, I certainly would like to hear from a representative of both of the companies and if they are not available, I don't know how the Council would feel about just deferring it; but, I would like to see the Council at least consider if the City Manager and the City Attorney think it is appropriate some project that in the future maybe on certain size City contracts that we have some limitation on the percentage that a sub may. . .an amount that can be subbed, perhaps some more stringent limitations on the financial ability on the major subs and as Tom has pointed out, maybe something about if it's permissible to do so something about having people that perhaps have been in business a little longer. I 'm certainly not against new business enterprises but on two plus million dollars of the City money I am somewhat concerned about a relatively new business. EXCERPT FROM REGULAR CITY COUNCIL SESSION HELD JULY 24, 1990 Page 4 COUNCILMAN DAVID MOORE: Guy, I certainly see a problem there because I was going to ask that we move for deferment of this action on this particular document simply because I am very uncomfortable with a couple of things about it. I really don't have a good feeling for going right back doing business with people who have put us in lawsuits and I guess our legal counsel probably we can't really view it that way; however, in view of what we are trying to create here, overall participation with inclusion of minority businesses I think we are looking for those minority businesses that have really been out there in the front line working and making effort to get in the good graces of the City based on performance. Again, not knocking new businesses coming in to the process because that is certainly not the intent here. It would certainly contradict what we have been working to accomplish with revolving loan programs and everything else but again we are looking at a situation where here is another company that's basically being set up and after you go through the reading it becomes more apparent to you that maybe we need to take another look at this. I too would like to hear conversation from the individuals who are getting this contract, especially in view of the fact that when you look at the differential in the contracts - nothing against Henderson, but I would also like the prime contractor take into consideration that we are very sensitive and we are very serious about our MBE program and we want them to do business with people that do good work for us and we have the least amount of problems with. So, I would certainly be in agreement with you in regards to having these individuals come forward be it with Council, be it with our legal attorney to really understand how this is being put together . . . . MAYOR PRO TEM COKINOS: In addition to what Councilman Moore and Councilman Goodson and Councilman Samuel are saying, I would like to know more about Tri- Tex myself. You've already answered one question. They've only been in business, what? six months? MR. WARNER: It's been less than a year. . . MAYOR PRO TEM COKINOS: Are they State approved? MR. WARNER: Yes, sir. They are State approved . . . MAYOR PRO TEM COKINOS: They are State approved . . . EXCERPT FROM REGULAR CITY COUNCIL SESSION HELD JULY 24, 1990 Page 5 COUNCILMAN MOORE: Is the State approval easier than our approval? MR. WARNER: I 've not gone through the State process. I don't know. COUNCILMAN MOORE: I wonder if ours is more rigid than theirs. . . MAYOR PRO TEM COKINOS: Are they . . . do they have their materials here? a batching plant here? transportation here? MR. WARNER: No, sir. Their indication to me was that they would barge their materials in from Corpus Christi area, that they were looking to buy Davidson Materials Plant. MAYOR PRO TEM COKINOS: Well, I certainly . . . . . . MAYOR LORD: Do any of the others have their equipment here? MAYOR PRO TEM COKINOS: Bo-Mac has it there. . . . sure. MAYOR LORD: I think you had something . . . excuse me, Andrew. MAYOR PRO TEM COKINOS: I also would like to . . . to . . . for this City Council to consider delaying this until we know more about. . .about Tri-Tex and whether or not they can live up to their contract to the City of Beaumont. I certainly agree with Councilmen Goodson, Samuels and Moore. MAYOR LORD: I think Councilmen Moore and Samuel both have something more that they'd like to say. EXCERPT FROM REGULAR CITY COUNCIL SESSION HELD JULY 24, 1990 Page 6 COUNCILMAN MOORE: Ray, there's something I 'd like you to check. Yesterday in our finance meeting in Austin for the State Legislative body, several things came into discussion about second position or second review proposals. That's a big thing now in regards to hi-tech equipment. A situation like this, I am sure I don't know if you all did, but, you know, we have this process where we apply, what is it? sales tax? and see if the differential is greater between a local firm and an outside firm. Did we do that in this case with a $2 .0 million dollar contract? CITY MANAGER: Yes, we did. COUNCILMAN MOORE: We did do that and . . . . . . CITY MANAGER: Well, in effect it's offset by the fact that the subcontractor tends to be local and over 90 . . . or about 90% of the total contract is retained locally so there's very little . . . . . . COUNCILMAN ALTER: That's . . . that' s what my question was but if he is getting his materials out of Corpus Christi as opposed to locally, isn't that going to work against us instead of for us? Shouldn't we . . . . . . CITY MANAGER: We normally exclude the cost of goods sold. Of course, it's a consideration, I think, by Council to make. In other words, it's very difficult to come up with a scientific formula which really determines, you know, a local preference. As a matter of fact, I think you tend to cause, you know, more difficulty trying to be very precise because we cannot be. I think it is really a determination that you have to make as to, in other words, what truly is a local contractor? What effects the local economy? And, what percentage generally do you think it is worth to the community in effect to do business locally. In this case, I believe that the difference in the contracts are about almost $46,000 - almost 2%. It will be difficult in trying to apply any formula that we have to :make . up 2% as a preference, but generally it will be somewhere between a half of one percent to one percent of the total contract. COUNCILMAN ALTER: Can I . . . ? EXCERPT FROM REGULAR CITY COUNCIL SESSION HELD JULY 24, 1990 Page 7 MAYOR LORD: Yes, please. COUNCILMAN ALTER: I don't know what our legal obligation is but I think we have an obligation to do two things. Number one to do the job at the least expense obviously to the City's taxpayers but also to do it with a reliable company so that we don't have to go back and redo the job if it is done poorly and we're involved. So, I would like to make a motion to table this issue until Council has the opportunity to review the financial capability and the . what's the word I 'm looking for? . . the history of the capability of the individuals behind the firm to do this kind of work because I think as expressed just about by everybody here on Council, we are all concerned about getting back involved into a situation that we've already had a negative impact on once and I think that everybody would like to table it until we have more information on it. COUNCILMAN MOORE: Rather than table it . . . . . . COUNCILMAN SAMUEL: Hold it . . . hold it . . . hold it. (Some comments by Councilmembers indecipherable. ) MAYOR PRO TEM COKINOS: Nah, don't table it . . . . . . COUNCILMAN ALTER: Don't table it . . .? COUNCILMAN MOORE: Rather than table it, I would say defer it . . . MAYOR LORD: I would say defer, defer is the word . . . . . . COUNCILMAN LULU SMITH: Let's get Lane's (Nichols) opinion . . . . . . COUNCILMAN SAMUEL: May I say something first . . . . . . MAYOR LORD: Yes, I think Lane has something he wants to say and Audwin Samuel has something he would like to say first and then we will move to Lane. EXCERPT FROM REGULAR CITY COUNCIL SESSION HELD JULY 24, 1990 Page 8 COUNCILMAN SAMUEL: I see this as a problem that we foresaw, we had visions of earlier. This is going to be something that we have to take a close look at since the last ruling in the Court systems. I would like for our Legal Department to look at it because one, we've already experienced going into court with it and we know whether we allow the contract or disallow the contract we are probably faced with a lawsuit and I 'd like to hear something from Lane along the lines of, first of all, is there anything that can preclude us from having to accept this bid because a party of the company is a part of a former lawsuit? MR. LANE NICHOLS CITY ATTORNEY: Yeah, let me kind of start with some other things. . . COUNCILMAN SAMUEL: Yes, go ahead . . . . . . CITY ATTORNEY: I 'll get to that, if I could just to. . .I think just to set the framework for discussion. The . . . first off, the staff, your lawyer and your Public Works Director and your City Manager had all the same concerns that you've mentioned. We've looked very closely at the contract and the specifications. The awarding of bids by a city is a statutorily controlled action and we are required to award to the lowest responsible bidder or . . . . . . COUNCILMAN MOORE: What is the lowest and best? Is that your term for responsible? CITY ATTORNEY: . . . the lowest responsible bidder is the actual words and we've used lots of different phrases in the past but that's what the statute says. So, you . . . low is not a real question in this case. There's not really any way to make a local preference and there are a lot of cases where cities and counties have attempted to do that without bringing it into the context of a computation that actually gives the citizens the lowest bid. You can't just have a 5% local preference and just pick it out of the air and say we consider that to be the benefit to the local community. Concepts like that have been struck down so you are talking about responsibility and a lot of the things that you've suggested I think could be handled through the drafting of specifications, either through new specifications if we were to reject all bids and start over or in the future to deal with that and I know the Public Works and our department have been working towards a new set of specifications that deal with a number of things like you've . . . that have been mentioned, such as limiting the size of subcontractors or if you have subcontractors above a certain size EXCERPT FROM REGULAR CITY COUNCIL SESSION HELD JULY 24, 1990 Page 9 CITY ATTORNEY continued: having certain rights to look at their responsibility. In a situation that we have today, we are dealing with defacto situations that exist but we have a prime contractor named Porter who is a responsible bidder out of Henderson, Texas, and, so, we are going beyond that in looking at matters that deal with the prime contractor . . . with the prime subcontractor that we don't have any basis to deal with under the specifications that were used in this case. So, we can defer it and provide additional information but it may very well be that given the legal context in which we find ourselves we would have to have different and new specifications to deal with some of these problems without running afoul of some specific liabilities that we want to avoid or that I want to avoid. COUNCILMAN SAMUEL: Okay, I have two questions, one being this is a project that we've all been waiting for, time crucial. If we were to defer it and it comes back with some of the same concerns, that means at that point we would have to throw out all bids and come up with new specifications. Am I correct? CITY ATTORNEY: Yes. Yes, sir, if you are going to do the project, I think . . . COUNCILMAN SAMUEL: And, time wise, what will we probably be looking at in doing that . . . if we had to do that? MR. WARNER: The bidding process is going to be a minimum of three weeks. We have to have a two-week time period between first advertisement and . . . a week's span between the first advertisement and the second advertisement. Then it's a matter of opening and award; however, the new agreement or contractual papers that Mr. Nichols was talking about is still under review. They are in his office, I believe, now and it would be a time frame of a couple of weeks to review that I would imagine. EXCERPT FROM REGULAR CITY COUNCIL SESSION HELD JULY 24, 1990 Page 10 MAYOR PRO TEM COKINOS: What happens if the City Council votes it down? doesn't pass . . . doesn't pass this . . . . . . ? CITY ATTORNEY: Well, you don't award it today? MAYOR PRO TEM COKINOS: I mean say . . . are we legally . . . will we be legally sound if we vote it down? CITY ATTORNEY: You won't get any streets fixed. COUNCILMAN SAMUEL: We either have to vote to reject all bids and rebid it or we can and one that I don't feel comfortable with is accepting another . . . not another bidder, correct? And that . . . . . . CITY ATTORNEY: I would advise that we go into an Executive Session to discuss what that might mean before you did that. COUNCILMAN SAMUEL: Yeah. But, what I 'm leaning toward is at this point . . . isn't this project already behind as far as getting started? MR. WARNER: Yes, sir. COUNCILMAN SAMUEL: . . . and it looks like it will be if we were to do something today, that would put it back another month at least if we rejected all bids to rebid because we have to deal with new set of specifications. How far are they along? looking at specifications that would address the concerns? EXCERPT FROM REGULAR CITY COUNCIL SESSION HELD FEBRUARY 24, 1990 Page 11 CITY ATTORNEY: I think they are out of my office but I think we are relatively close and of course we could fast-track the specifications. They looked real good to us and it would solve a lot of those problems. You can't solve every problem if you have a prime contractor who is willing and has the flexibility to take subcontractors on as his own employees, you know, just take them on and run them through his payroll and call them his people, buy Worker's Compensation Insurance for them and do everything that is necessary. You cannot avoid doing business with people that you may not want to do business with if everybody on the contracting side wants to take the necessary steps to see that it happens. COUNCILMAN SAMUEL: Well, Council, after all other comments are made, my recommendation or my . . . I would like to make a motion that we reject all bids and send down for new specifications and rebid it because if we just defer it and come back with questions answered a week from now that just means that' s another week that we are going to be behind. So, after all the discussion, that's going to be my motion. MAYOR LORD: Now, we have no problem with that legally, do we, Mr. Attorney? CITY ATTORNEY: No, you have the authority to reject all bids. There are consequences from that that . . . for instance, the folks that have already bid have revealed a lot of information and spent a lot of time doing it, even the losers. So, you do have some fallout from making that a habit and it has not been a habit around here. MAYOR LORD: All right, now, when you say fallout, I can see you would if you made it a habit . . . CITY ATTORNEY: . . . but not legally. MAYOR LORD: . . .but legally you . . . we would have no difficulty with that and this would be hopefully a one time situation that we are dealing with. Did you have other comments, David? EXCERPT FROM REGULAR CITY COUNCIL SESSION HELD JULY 24, 1990 Page 12 COUNCILMAN MOORE• My only concern is I understand the intent of Councilman Samuel 's motion. To a large extent I am supportive but I just don't want to set a precedent whereas we discourage outside contracts from coming into the city. We certainly all want local preference if we can so that the dollars will remain in this community. I understand that, I mean, that's one thing to work toward, but at the same time we want to get the best buy for all the citizens as well in terms of how we utilize their tax dollars. My major discomfort as I stated earlier and maybe we don't have any grounds to stand on is getting right back into another agreement with someone we had a great deal of problems with earlier even though it is somewhat different but the same parties are involved and that would be my reasoning in supporting Councilman Samuel 's motion, but I just wanted that stipulation put in where we are not sending a message that we are discouraging outside competition. MAYOR LORD: We also hopefully will not send the message that we are making presumptions that we shouldn't make, that a prime contractor, you know, couldn't do his job or that necessarily somebody else . . . yes, Guy. COUNCILMAN GOODSON: Mayor, if I could, perhaps they are not ready to be discussed but I am hearing that we have some bidding specifications changes for future construction contracts, is that correct? I assume those . . . are those going to be referred to Council for approval or is that internally handled by the City staff? CITY MANAGER: It' s done internally. A number of the changes which have already been spoken to have taken place and that is at least requiring the prime contractor, the general contractor to do a certain amount or retain a reasonable percentage of the contract on his own. I think that . . . . MAYOR LORD: Councilman Samuel . . . excuse me. EXCERPT FROM REGULAR CITY COUNCIL SESSION HELD JULY 24, 1990 Page 13 CITY MANAGER: I think that we will have to review that question about getting around that by hiring a subcontractor and including it on his own payroll and speaking to, you know, the specific language which we will deal with the City Attorney in trying to eliminate what would be fronting or brokering which we consider to be a difficult part of this type of contract. MAYOR LORD: Councilman Samuel and then Councilman Goodson . . . COUNCILMAN SAMUEL: I just wanted to come back and reinforce what David is mentioning. I think it is important, the message that we are sending out and the reason that I am making this motion is one because we do. . .we are concerned about those businesses in Beaumont but more importantly we are very concerned about the integrity of our Minority Business Enterprise Program. We don't want it to be abused and we don't want to see its integrity destroyed by front organizations. I am not making allegation that this is a front organization but from the experience we've had in dealing with minority business enterprises, this is . . . this raises the flag of what has been seen across the country as a front organization and that is why I am suggesting that we readdress or relook at our specifications to ensure that we have done the things necessary to prevent this happening not only in this case but in other cases going on. MAYOR LORD: Now, as yet, you have not made the formal motion, correct? COUNCILMAN ALTER: He has made the motion, it hasn't been seconded yet. MAYOR LORD: He said . . . he said at the end . . . COUNCILMAN SAMUEL: I said at the end of the conversation I would make it. COUNCILMAN ALTER: Oh, I 'm sorry . . . EXCERPT FROM REGULAR CITY COUNCIL SESSION HELD JULY 24, 1990 Page 14 MAYOR LORD: . .he said at the end of the conversation he would make it so, I think, Councilman Goodson, you had something you wanted to add. COUNCILMAN GOODSON: I just was curious if the present contract with . . . we have two contracts we are going to be discussing today for streets, if either one or both of them would have complied with the proposed specifications for the amount of work given the prime contractor. . . ? the contract that we have not discussed, I don't want to get ahead of ourselves, I think required on the other part of the street program had a minority contractor for about ten percent. This one was almost 90%. Would . . .? I assume that this is subcontracting out in this first contract more than the new set of specifications would . . . . . . CITY MANAGER: . . . would allow. COUNCILMAN GOODSON: What about the other one? The other one I assume would generally be in compliance, the ten percent that' s on the other contract? MR. WARNER: The MBE . . . MBE requirements state that ten percent of the total contract for construction. I should clarify that the new specifications that we are requiring will not change MBE percentages. It only addresses amounts that are going to have to be performed by the prime contractor. COUNCILMAN GOODSON: Thanks. I just want to make sure that we are consistent, that if we had to throw this one out for some problem that dealt with that percentage that we are concerned about in the future what effect that would have on this other contract we will be looking at in a little bit. MAYOR LORD: Audwin . . . COUNCILMAN SAMUEL: I think there are a number of reasons that we are throwing this one out. It's more than that. . .but, I would like to. . . EXCERPT FROM REGULAR CITY COUNCIL SESSION HELD JULY 24, 1990 Page 15 MAYOR LORD: Do you want to make the motion now? COUNCILMAN SAMUEL: Yes, I would like to make the motion that we reject all bids and rebid for this particular project for reasons that I 've previously stated. COUNCILMAN MOORE: I 'll give support to that motion. MAYOR LORD: It's been moved and seconded. Is there any further discussion? If not, all those in favor, please say aye. (All voted aye. ) Nayes? (None) The ayes have it and the motion is carried. END OF EXCERPT Excerpt requested by Councilman Audwin Samuel. EXCERPT FROM CITIZEN COMMENT PORTION OF 7!24/94 CITY COUNCIL MEETING TROY DODSON Honorable Mayor, I 'm Troy Dodson, Jr. I represent Tri-Tex Paving and Construction. I apologize for not getting here on time as far as you all awarding that major street resurfacing project. There's a couple of things I'd like to clarify. Tri-Tex is not going to be doing 90% of the work. They're portion is approximately $350-400, 000. Mr. Porter with the Porter Co. will be furnishing and trucking the hot-mix asphalt to the job. If there was an error in filling out that Schedule C, I apologize. What is meant to say, is a million-nine would be the Porter Co. 's responsibility. There's another sub-contractor, Traco, Incorporated. They're going to be doing approximately $200-300,000. And - what - is it my understanding just because Tri-Tex, in you-all 's opinion, was the million-nine, is that the reason you all rejected it? MAYOR LORD I think, probably, the best way to answer that is that you could review the Minutes as soon as they're prepared and have the value of that. There'd be a tape if you'd like to come and listen to it, and then you would have the whole picture. MR. DODSON Okay. MAYOR LORD Okay. MR. DODSON Thank you. MAYOR LORD Thank you for bringing us the information. Is there any other citizen who would. . .Excuse me, Mr. Samuel. COUNCILMAN SAMUEL I would, I don't mind responding to it because that was one of my biggest concerns. Yes, that was one of the major concerns I had with the breakout of the proportions PAGE 2, CITIZEN COMMENT EXCERPT, 7/24/90 (DODSON) MR. DODSON I think it was just an error in filling out the Schedule C, the way you related to it. Tri-Tex Paving is not going to be doing a million-nine worth of work--not 90% of the work. They're going to be doing--what is it, $350-400,000 of it. It's 20% of it. They're gonna--Mr. Porter with the Porter Company is gonna actually be furnishing the hot mix. You know, it's all in his name, furnishing the trucking of the material to the job and various other related aspects of it. COUNCILMAN SAMUEL Well, I will just say that was the thing--that was one of the things that raised a red flag with me--and that brought about other concerns. And, I 'd be more than happy to visit with you and explain to you how I felt about it, and at the same time, it may help you to understand what you will see in the Minutes, because I was very concerned about it. TROY DODSON Well, sure, I can appreciate that, and I understand it, but I, you know like I say, I apologize for not getting here on time. I really didn't think I was needing coming up. Is there anyway you all can reconsider that? Or, is it all MAYOR LORD I think we passed something today, and so I think visiting COUNCILMAN SAMUEL It was rejected. MAYOR LORD Visiting with Mr. Samuel is probably a good idea. COUNCILMAN SAMUEL It's very unfortunate that you were not here because, I'm not saying that had you been here and explained it, it would of, it could possibly change some feelings about it. But, at this point, I felt the best thing with the motion that I made to reject all bids and come back for new bids. MR. DODSON I, well, I appreciate your time. MAYOR LORD Thank you, again, Mr. PAGE 3, CITIZEN COMMENT EXCERPT (DODSON) , 7/24/90 COUNCILMAN SAMUEL I 'll be more than happy to visit with you and talk to you about it. MR. DODSON Okay. MAYOR LORD Is there any other citizen who would like to address Council? END OF EXCERPT.