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HomeMy WebLinkAboutMIN OCT 07 1980 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD OCTOBER 7 , 1980 BE IT REMEMBERED that the City Council of the City of Beaumont , Texas , met in regular session this the 7th day of October , 1980, with the following present : HONORABLE : Maurice Meyers Mayor Tom Combs, Jr. Councilman , Ward I Evelyn M. Lord Councilman, Ward II Calvin Williams Councilman, Ward III Wayne Turner Councilman, Ward IV Ray Riley City Manager R. E. Platt Asst . City Manager Lane Nichols Asst . City Attorney -000 The Invocation was given by the Reverend James Ratcliff , First United Methodist Church. The Pledge of Allegiance was led by Councilman Lord. -000- Mayor Meyers welcomed'-:the Senior Government class from Kelly High School and their teacher , Mr. John Conway, to today's session. -000- ?Mayor Meyers issued the following proclamations : "Respect Life Month in Beaumont" - October , 1980; "International Alpha Delta Kappa Week in Beau- mont" - October 12-18 , 1980; Legal Secretaries ' "Day in Court" - October 14, 1980; and "Consumer Education Week in Beaumont" - October 5-11 , 1980. -000 Resolution 80-348 authorizing purchase of coaxial cable , connector kit and adapter for the Fire Department from Terry Ball Desibl Products Company at a cost of $1 ,665. 50 was approved on a motion made by Councilman Turner and seconded by Councilman Combs . Question : Ayes : All Nayes : None -000 Resolution 80-349 authorizing the City Manager to enter into a contract with the Beaumont Housing Authority for utilization of $50,000 of Community Development Block Grant Funds for public housing improvements (parking facilities at Neches Park Homes and Magnolia Gardens and security lighting at Lucas Gardens and Grand Pine Project was approved on a motion made by Councilman Lord and seconded by Councilman Combs. Question: Ayes : mayor Meyers Nayes : Councilman Councilman Combs Turner Councilman Lord Councilman Williams -000- Resolution 80-350 appointing Clayton Mayfield to fill the unexpired term. of Ken Baugh on the Community Development Block Grant Advisory Committee (term to expire May , 1982) and Georgia Smith and Delia Harrington to serve the Clean Community Commission (terms expiring 10-1-82) was approved on a motion made by Councilman Lord and seconded by Councilman Williams. Question : Ayes : All Nayes : None -000- -187- October 7 , 1980 Resolution 80-351 authorizing a 5-year agreement leasing lots 3 and 4 of the Calder Courts Addition to Allied Union Bank to be used for parking only at $300. 00 per month was approved on a motion made by Councilman Combs and seconded by Councilman Turner . Question: Ayes : Councilman Combs Nayes : None Councilman Williams Councilman Turner Abstained: Mayor Meyers Councilman Lord -000- PUBLIC HEARING CITY MANAGER RILEY: The next item is a public hearing concerning an Urban Development Action Grant application by the City of Beaumont relative to the construction of a parking garage as part of a downtown development program which in- cludes the construction of the Hilton Hotel . The City has been involved . in preparation of a plan now for over a year for the construction of a Parking Garage which would be immediately located just to the south of the current Civic Center immediately across from the Auditorium and lo- cated at the intersection of Main and Forsythe/Fannin , in that block. There are funds . . there is a program that is offered by the Department of Housing and Urban Development which is commonly referred to as UDAG in which funds are made available to communities for redevelopment of the downtown commercial district . The purpose of the program is to promote investment of private funds in the Central Business District along with the use of federal or local funds. In this regard, we anticipate the construction of the Hilton Hotel on the present vacant site and in con- junction with that the construction of the Parking Garage and its is es- timated that we will have funds available to us from the Federal Govern- ment through the UDAG program for use for the construction of the Garage. I believe that Mr . Whitaker has prepared the preliminary form of the ap- plication and is prepared to give you the details of what the application will entail and how it would be processed through the Department of Hous- ing and Urban Development . Mr . Whitaker . . . NORMAN WHITAKER, PLANNER: Okay. The reason we are having the hearing today is because the applica- tion process requires us to have two public hearings on our project . We had a hearing yesterday with the Planning Commission which was concerned with the UDAG program in general and the hearing today is concerned with the specific project , the Hotel-Parking Garage project we are working with. This will be a competitive grant application . We will compete with other cities who have UDAG Projects and the project will be evaluated dur- ing the months of November and December and final funding decisions . . . preliminary funding decisions will be made in December and we will find out if HUD has recommended that we get the funding. This project will benefit the City in several ways other than the provision of parking spaces downtown. The Hotel should create more business for the City's Convention Center . The Hotel will result in substantial increase in the property sales tax to the City. The Hotel is expected to provide new employment opportunities for 175 people - 135 of these new jobs will be for unskilled people and will provide opportunities for the unemployed and people with no job skills to enter the work force and receive employment training. And, finally, the Hotel is expected to stimulate downtown retail and ser- vice activity. The Chamber of Commerce has estimated there will be 105 additional new jobs - not counting the Hotel jobs - created in Beaumont as a result of the development of the Hotel . The developers of the pro- ject , the Rogers Brothers in a joint venture arrangement with Servico, Inc. of Boca Rotan, Florida . . . both of the partners of the joint venture would retain control of the Hotel . Servico, which operates approximately 40 hotels in the eastern part of the United States east of the Rockies , would be responsible for managing the Hotel . The City has a lease agreement with the Hotel for 120 parking spaces and the City will receive some income from the Parking Garage. At this point in the hearing , we ' d like to ask if there is anyone that has any questions or comments about the UDAG program in general or about this specific project we are working on . -188- October 7, 1980 MAYOR MEYERS : In compliance with the federal requirements , we would declare this an open hearing now so in response to Mr . Whitaker' s question, is there anyone that would care to speak to the subject? If not , we will look forward to a successful application , Norman, and declare this hearing closed and move to the fifth item on the Agenda, Ray. Resolution 80-352 authorizing the City to submit an application to the U. S. Department of Housing and Urban Development for an Urban Development Action Grant to fund all or part of a parking garage to service the Civic Center and proposed downtown Hilton Hotel was approved on a motion made by Councilman Combs and seconded by Councilman Turner. Question : Ayes : All Nayes : None -000- PUBLIC HEARING ENTEX RATE INCREASE CITY MANAGER RILEY: The next item is a public hearing related to the request by Entex for their application for an increase in residential and small commercial customers' rates. I believe Mr . Duffee from Entex is here to make a statement to Council . MR. L. A. DUFFEE, DISTRICT MANAGER, ENTEX : Thank you , Mayor and members of the City Council . On August the 7th, Entex filed a Statement of Intent with the City in which we proposed to increase our rates by approximately $1 , 987 , 000 annually. This in- creace is necessary for us to offset the increase in our operating ex- penses which we have experienced the last year and are continuing to experience. The increase in expenses includes primarily increases in salaries paid to our employees , gasoline, operating supplies and other items which are essential to the operation of our business. For the twelve months ending March, 1980, which was the test year from which our application was based, after making adjustments for known increases in expenses , our rate of return on adjusted value of invested capital was only 1. 97% and our suggested increase will increase our return to 87o on adjusted value of invested capital which we feel will enable us to operate our system in a manner which will provide adequate service to our custo- mers in the City of Beaumont . Each member of the Council has received a brochure which I think explains in further detail the basis and reason for this requested increase and I will be glad to answer any questions that any members of the Council might have regarding our increase. MAYOR MEYERS : Thank you , Mr. Duffee. Does Council have any questions that they would care to direct to Mr. Duffee at this time? No. Thank you very much. We would in compliance I think now open this as a public hearing and offer any of those present who would care to speak to the Entex rate increase presented by Mr . Duffee that opportunity to do so now. We ask only that you first give us your name and address , please. MR. STEVE ROSS , ATTORNEY: Mr . Mayor and members of Council . My name is Steve Ross . I am an attor- ney with the East Texas Legal Services . We are a federally funded agency and are charged with representing the interests of low-income persons be- fore various governing bodies and in courts , etc. I am here to speak to the Council and perhaps those members of the Council who have been here will recall that I came before the Council at that time with regard to Entex' s then pending rate request and there were some matters of unfinished business that we've carried over in our files to this year which in the intervening period discussed with Mr. Duffee and with Entex and which we are now in the process of continuing to negotiate with Entex on . Those -189- October 7, 1980 MR. ROSS continued: matters concern an item . . . a memo that I hope that has been presented to the Council with regard to the service rules or tariffs - the regulations under which Entex provides service. The important thing to consider in those draft regulations that we have tendered to you is at present time , we are not asking you to do anything with regard to those proposals . We are trying to narrow the issues or perhaps reach an agreed-upon proposal that both Entex and we can come forward to the Council and recommend for the Council ' s adoption. We expect to meet with Mr. Duffee in about two weeks to try and finish off narrowing the issues or resolving the remain- ing outstanding differences but I did want the Council to start thinking about these issues because at some point , either by agreement or partially by agreement and partially by different points of view, we will be present- ing to Council the proposed rule changes in some form or other and that Council have to consider whether or not it is in the public interest to accept these recommendations as agreed upon or whatever differences may then exist . The issues are important because Entex, as everyone knows , is basically the only gas company in town and Council is charged with pro- viding for a fair rate of return to the company in exchange for a reason- able quality of service and quality of service means amongst other things customer relations and the ability to inform customers their rights and so forth. What I would suggest to the Council is if Council at this point has any questions with regard to some of our proposals , I will be glad to try and answer them. If not , we can come back to the Council perhaps in a Workshop and present what items we have agreed on with Mr . Duffee in a few weeks. MAYOR MEYERS : Does Council have any questions at this time to direct to Mr . Ross? COUNCILMAN LORD: Do I understand correctly, Mr . Ross , that when you come back to Council in a few weeks you will just be bringing to us at that point things that you have agreed upon? MR. ROSS : No, ma' am. With regards to that , we will be bringing both things we've agreed upon and if there are any points of disagreement we will be bring- ing those to Council . COUNCILMAN LORD : Well , that would probably be a better time to get into the fray then be- cause there is no sense in flogging something at this point that might be eliminated with your mutual discussions. MR. ROSS : Thank you. MR. LEGGETT : J. C. Leggett , 1849 Washington Blvd. First of all , I want to know who this man is representing - the people or the Gulf States? MAYOR MEYERS : That gentleman? Mr. Ross , would you inform Mr . Leggett about East Texas Legal Services and what it is and what it represents? MR. ROSS : Yes, Mr. Mayor. We are a federally funded agency. We receive appropria- tions from the United States Congress. We are . . . . . . governmental body and are chartered as a non-profit corporation in the State of Texas . We provide legal service to people . . . . . . MR. LEGGETT: Then, you are between Gulf States and the City . . all the people . . concerned is that it? -190- October 7, 1980 MAYOR MEYERS : In answer to your question, he represents more people than he would Entex. MR. LEGGETT: Okay. Thank you . Now, I want to bring some things to light here before all the people. I want them to hear all this stuff . First , Gulf States asked for $84. 5 million dollars. MAYOR MEYERS : Are you talking about Gulf States or Entex? MR. LEGGETT: Yes, sir. In the eyar gone past and I have fought two or three of these battles myself . But , in the years gone past , they have asked for anywhere from $36. 0 to $38 . 0 million dollars and usually wound up getting about $16. 0 million - through Touche and Ross and also the State body —used to be the Railroad Commission, now it is something else; but , anyway, by the act of the last Legislature they appointed this other body of three people. Now, that is just about half that I am going to say about that sum. A half - in the year gone by compared with what they was asking. This time they' re asking for $84. 7 million but when it first came out in the news- paper a couple of months ago , it was $84. 5 - it might be a typographical mistake or something or other but this time Touche & Ross and the . . . that new body that the State Legislature set up is giving them more than half of what they've asked for and it ' s very large , exorbitant amount and not only the City is involved but all the outside - outlaying country , farms, ranches, etc . They 're having to meet the same thing. Personally , I 'm against it because I don 't believe it ' s right . Next thing I want to say is this and I don ' t care who hears it . I am against Nuclear Plants and I am against having to pay for that office building down there. Nobody didn 't ask them, beg them to come here and build that building. They say they've got to have expansion for the office forces . Maybe they have - no doubt they have - but they was planning first on scrapping that present building; now it come out in the paper a week or so later that they 've got a chance to sell that office building. So, why are they hurting for money so bad? As I said a while ago , I am unalterably opposed to accepting $44. 0 . . . . . . I am downright against it , myself . Thank you. MAYOR MEYERS : Thank you, Mr . Leggett . Are there any other people present who would care to make any comments while we have this public hearing to discuss the rate increase of Entex? If not , we would then declare this public hearing closed. Thank you. -000- A discussion was held concerning the need to renegotiate portions of the franchise for Cabletelevision for the City. Comparisons of various items are to be prepared for consideration at a later time. -000- Mr . J. C. Leggett , 1849 Washington Blvd. , again addressed Council concern- ing the Gulf States rate increase request . Mrs. Alice Kane, 5220 Helbig, addressed Council to request possible funding by the City for the Central Day Care Center. -000- There being no further business , the meeting was recessed before continu- ing with the Workshop Session . -000- I , Rosemarie Chiappetta , Deputy City Clerk of the City of Beaumont , Texas , certify that the above is a true copy of the regular City Council session held October 7 , 1980. R. Chiappetta, Deputy City Clerk -191- October 7 , 1980