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Home My WebLink AboutMIN MAY 08 1984 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD MAY 8, 1984 BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in regular session this the 8th day of Play, 1984, with the following present: HONORABLE: William E. Neild Mayor 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 Karl Nollenberger City Manager Hugh Earnest Assistant City Manager Lane Nichols City Attorney -000- The Invocation was given by Mayor William E. Neild. The Pledge of Allegiance was led by Councilman Audwin Samuel. -000- Three (3) proclamations were issued: "Transportation Week" - May 13-19, 1984, "Texas Nursing Home Week" - May 13-20, 1.984, and "Preservation Week" - May 13-19, 1984. -000- The following Consent Agenda items were considered: Approval of the Minutes of the regular City Council session held May 1, 1984; Resolution 84-1S2 authorizing execution of an instrument dedicating a 20-foot strip of land on Pennsylvania and an 8-foot strip of land on Sabine Pass for street right-of-way purposes; Resolution 84-1S3 authorizing establishment of a utility payment account at Beaumont Bank and authorizing Karl Nollenberger, Myrtle Corgey, and R. J. Nachlinger as official signatories; Resolution 84-1S4 authorizing the purchase of a motor scooter for the Police Department and accepting the $1,150 bid of Triple L Honda of Orange, Texas; Resolution 84-1SS authorizing the purchase of an electronic typewriter for the Beaumont Health Department from Office Development Systems in the amount of $1,045; Resolution 84-1S6 authorizing execution of an amendment to the contract with the Texas Department of Health for the operation of the W.I.C. Nutrition Program funded by the U. S. Department of Agriculture; Resolution 84-1S7 authorizing execution of a Memorandum of Agreement with the Texas Historical Commission and the National Advisory Commission on Historic Preservation concerning the Kyle Plaza; and Resolution 84-1S8 authorizing the purchase of ten (10) sets of undercover sirens and portable, red flashing lights for the Police Department from Trinity Communications of Beaumont in the amount of $2,920.00. The Consent Agenda was approved on a motion made by Councilman Moore and seconded by Councilman Samuel. Question: Ayes: All Nayes: None -000- -72- May 8, 1984 A Public Hearing to consider the rate increase request of Gulf States Utilities Company was held. Mr. Arden Loughmiller, Division Vice-President of Gulf States Utilities Company, addressed Council stating he had no additional information to file with the City regarding the rate request; however, he requested that Council give favorable consider- ation to the request, and he is available to answer any questions Council or Gulf States Utilities customers might have. Touche Ross $ Company has been retained by the City of Beaumont to do an analysis and present a recommendation with respect to Gulf States Utilities Company's January, 1984, request for rate relief. Mr. Robert Johnson, a representative from Touch Ross, addressed Council to present their findings. Using invested capital, rate of return, and test-year operating income as components for the analysis, Mr. Johnson computed that Gulf States Utilities Company actually needs approximately $23,153,000 or a 40 rate increase opposed to their immediate request of a 27% increase and a January, 1985, increase of 36%. In response to Councilman Moore's queries, Mr. Johnson reported that the Public Utility Commission's hearings are still in progress regarding the Gulf States Utilities Company rate request, and that there would probably be no Commission action for at least a month, and Touche Ross' rate increase recommendation was not influenced by the Public Utility Commission's possible decision, but by what his company believes to be appro- priate revenues for Gulf States Utility Company to earn in the next year. There being no one else to address Council, the hearing was closed. -000- Ordinance No. 84-67 establishing rates charged by Gulf States Utilities Company for retail electric service provided within the City of Beaumont was considered: Lane Nichols, City Attorney, reported that the Legal Department has prepared an ordi- nance setting the utility rates at the same level they were last year, in spite of the fact that the consultants recommended a $23,000,000 increase, based on the posture that cities find themselves in under the Public Utility Regulatories Act. We are required to act within 135 days of filing, and the final decision made by the Public Utilities Commission probably will not be made until late June or early July. We could find ourselves in the anomalous position of setting rates here that would be different from those set for the rural areas, those cities who set no rates, and those cities whose rate setting was appealed to the Commission. That would not be a good state of affairs whether they were higher or lower. Given the status of the statutory authority under which we have to act, Mr. Nichols requested Council adopt an ordinance granting no rate increase at this time. Mr. Nichols stated that there might appear to be an anomoly between what our consultants are saying and his recommendation. However, he feels his recommendation is a prudent course of action given the statute under which we work. ORDINANCE NO. 84-67 ENTITLED AN ORDINANCE ESTABLISHING THE RATES CHARGED BY GULF STATES UTILITIES COMPANY FOR RETAIL ELECTRIC SERVICE PROVIDED WITHIN THE CITY OF BEAUMONT; ASSESSING ALL EXPENSES INCURRED BY THE CITY OF BEAUMONT AS A REGULATORY AUTHORITY AGAINST GULF STATES UTILITIES COMPANY; AND PROVIDING FOR SEVERABILITY. The ordinance was approved on a motion made by Councilman Samuel and seconded by Councilman Turner. Question: Ayes: Councilman Turner Abstained: Mayor Neild Councilman Weisbach Councilman Brumley Councilman Samuel Councilman Moore -000- -73- May 8, 1984 Ordinance No. 84-68 authorizing a transfer from the Insurance Fund to the Health Department was considered: ORDINANCE NO. 84-68 ENTITLED AN ORDINANCE AMENDING THE BUDGET OF THE CITY OF BEAUMONT FOR THE FISCAL PERIOD COMMENCING OCTOBER 1, 1983 BY TRANSFERRING $24,120.00 FROM THE INSURANCE FUND TO THE HEALTH DEPARTMENT; PROVIDING FOR SEVERABILITY AND PROVIDING FOR REPEAL. The ordinance was approved on a motion made by Councilman Weisbach and seconded by Councilman Samuel. Question: Ayes: All Nayes: None -000- Resolution 84-159 authorizing execution of amendments to the labor contract with the Fire and Police Unions, establishing a Pilot Health Program for retirees and agreements to provide for funding for the Pilot Health Program was approved on a motion made by Councilman Brumley and seconded by Councilman Turner. Question: Ayes: All Nayes: None -000- Resolution 84-160 authorizing execution of agreements for appraisal services with American Real Estate and Hare, Burns & Osborne for right-of-way necessary for the High- land Avenue TIP project not to exceed $7,000 was approved on a motion made by Council- man Turner and seconded by Councilman Samuel. Question: Ayes: Councilman Turner Abstained: Mayor Neild Councilman Weisbach Councilman Brumley Councilman Samuel Councilman Moore -000- Resolution 84-161 authorizing purchase of a remote control console radio in the amount of $17,633 from General Electric Company was approved on a motion made by Councilman Moore and seconded by Councilman Brumley. Question: Ayes: All Nayes: None -000- Resolution 84-162 authorizing an annual contract for mowing and clearing vacant lots at $0.0035/sq. ft. and developed lots at $0.0060/sq. ft. with Nick's Grass Cutting Service, Inc. of Port Arthur, Texas, was approved on a motion made by Councilman Brumley and seconded by Councilman Turner. Question: Ayes: All Nayes: None -000- Resolution 84-163 authorizing adoption of the new rental rate schedule for T-Hangars at the Beaumont Municipal Airport was approved on a motion made by Councilman Samuel and seconded by Councilman Weisbach. Question: Ayes: All Nayes: None -000- Resolution 84-164 authorizing the sale of surplus City-owned 40 x 517-foot tract of land located west of Langham Road and just north of the Southern Pacific right-of-way out of Lots 1 and 2, Block E, of the T. H. Langham Estate Subdivision to abutting property owner Bill Folmar, Trustee, in the amount of $5,000 was approved on a motion made by Councilman Brumley and seconded by Councilman Turner. Question: Ayes: All Nayes: None -000- -74- May 8, 1984 Mayor Neild asked for information regarding the progress of the sale of Morgan and Spindletop Parks as approved in the August 13, 1983, General Election. City Manager Karl Nollenberger reported that necessary land surveys were being conducted for zoning regulations prior to disposition. -000- Councilman Weisbach commented that on her recent tour of the city she observed a great number of city-owned vacant lots and suggested their disposition and return to the tax roll. -000- There being no further business, the meeting was recessed before continuing with the City Council Workshop Session. -000- I, Barbara Liming, Deputy City Clerk of the City of Beaumont, certify that the above is a true copy of the Minutes of the regular City Council session held May 8, 1984. Barbara Liming Deputy City Clerk -7S- May 8, 1984