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HomeMy WebLinkAboutPACKET JULY 19 2005 t ELOVZ W 11 IL W t7wjj City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS JULY 19, 2005 1:30 P.M. CONSENT AGENDA * Approval of minutes * Confirmation of committee appointments A) Authorize the granting of a Pipeline License Agreement and an Access Easement Agreement with Cimarex Energy Co. to cross a 2,183.5 acre tract [owned by the City of Beaumont] in the C. Hillebrand League, Abstract 28 • • A City of Beaumont Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Public Works Director MEETING DATE: July 19, 2005 AGENDA MEMO DATE: July 12, 2005 REQUESTED ACTION: Council consider a resolution authorizing the granting of a Pipeline License Agreement and an Access Easement Agreement with Cimarex Energy Co.to cross a 2,183.5 acre tract [owned by the City of Beaumont] in the C. Hillebrand League, Abstract 28. RECOMMENDATION Cimarex Energy Co. has requested permission for a 30 foot wide access easement across the C. Hillebrand League, Abstract 28, for use as a road and/or for the placement of a gas pipeline. The road will be for access for the drilling and production of an oil and/or gas well on property adjacent to City property. The pipeline will be for the purpose of transporting oil and/or gas and associated produced liquids, and will be constructed in accordance with City requirements. Administration recommends authorization to grant a Pipeline License Agreement and an Access Easement Agreement. BACKGROUND None. BUDGETARY IMPACT There is a one-time fee of$500 for the Pipeline License Agreement and an annual fee of$2.25 per linear foot of pipeline. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY: City Manager and Public Works Director. engc6narex-b.wpd 12 July,2005 Fie name: 05031Mdwg KHS Plot date: 04/27/05 at 200 ,/Ajar RO)rE SURVEY A-45 S 02'41'51'E ... Galw LP.Fad LP.Fnd N 871809•E f501 —S f� Y-3,543,841.97 SEQIN PROPOSED e+ �s SENT 3o'-i l I I' Called z183.50 Acres I I From Harry HoM-Y.et ax I . To The City.Of Bewmmt I r Co.Clerk,Fie(103-03-0258) I� R I' I C. HILLEBR"-D LEAGUE 'I a A-28 o if M IJ rn M l a I, CIO III ,.• wit � P, NII I� I I I C"842 Aae4 Tract 2 To Robert I;Hi AmWt Val 62J Pogo 494 I fi I �I I I 1 1-Gale.LP.Fnd END I� I I I' I I I' I Caled 842 A.1m Trod 3 PROPOSED EASEMENT I To Nice HYlebradt j Vd.6Z Pogo 494 NOTE ` ALL THE HORIZONTAL CONTROL IS REFERRED TO THE TEXAS PLANE COORDINATE SYSTEM,LAMBERT PROJECTION,NAD 27 DATUM.CENTRAL ZONE ALL BEARINGS,DISTANCES AND ACREAGES ARE GRID. THE THETA CORRECTION AT A GALVANfZED IRON PIPE FOUND AT MOST EASTERLY NORTHEAST CORNER OF A CALLED 2,18150 ACRE TRACT RECORDED IN CO. X W FILE(1os-03-0258)IS+0273'25'AND AND THE SCALE FACTOR 6 0.999932445. TRACT INFORMATION SHOWN HEREON IS DONE SO BY D®RECORD INFORMATION ONLY AND DOES NOT REFLECT AN ACTUAL SURVEY: COPYRIGHT*SHINE&JOHNSTON,INC_,2005. �i EXHIBIT 'A' o Plat Showing A Proposed N 30 IYide Zasement �P s For Cimarex Energy Co. In The C. Hillebrand League SCALE 1•-300' Abstraet 98 ShIr-L Jmhnston,rn� Iefferson County,Texas P.11 Box�snee,Texas. 77656 Prepared in the offices of Shine and Johnston Qc 2005 F o 09)3866 Fax 0409)385--0936 Bwqw Oft bd OWN • ' C City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS JULY 19, 2005 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items/Consent Agenda * Consent Agenda GENERAL BUSINESS 1. Consider adopting a resolution suspending for ninety(90) days the effective date for the adoption of rates for CenterPoint Energy and authorizing the participation • of the City of Beaumont with other cities in the CenterPoint Beaumont/East Texas service division to evaluate and make recommendations concerning the requested change in rates 2. Consider approving a bid for the purchase and installation of pumps and equipment for use in the East Virginia stormwater lift station COMMENTS * Councilmembers/City Manager comment on various matters * Public Comment (Persons are limited to 3 minutes) EXECUTIVE SESSION * Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Antioch Missionary Baptist Church of Beaumont v The City of Beaumont, et al Roy Malveaux v City of Beaumont • Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Pat Buehrle at 880-3725 a day prior to the meeting. � 1 July 19, 2005 Consider adopting a resolution suspending for ninety(90) days the effective date for the adoption of rates for CenterPoint Energy and authorizing the participation of the City of Beaumont with other cities in the CenterPoint Beaumont/East Texas service division to evaluate and make recommendations concerning the requested change in rates Cat y of Beaumont �► Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City Attorney MEETING DATE: July 19, 2005 AGENDA MEMO DATE: July 13, 2005 REQUESTED ACTION: Council consider adopting a resolution suspending for ninety (90) days the effective date for the adoption of rates for CenterPoint Energy and authorizing the participation of the City of Beaumont with other cities in the CenterPoint Beaumont/East Texas service division to evaluate and make recommendations concerning the requested change in rates. RECOMMENDATION The administration recommends approval of a resolution suspending for ninety (90) days the effective date for the adoption of rates for CenterPoint Energy and authorizing the participation of the City of Beaumont with other cities in the CenterPoint Energy service area in evaluating and making recommendations concerning the requested change in rates including any administrative proceedings or litigation associated with the proposed increase in rates. BACKGROUND On Thursday, June 30, 2005, CenterPoint Energy filed for a rate increase with the City of Beaumont and other cities in its Beaumont/East Texas service division. According to CenterPoint Energy's Statement of Intent to Change Rates, the company is proposing to establish the same rates for customers within the City of Beaumont as adopted by the Railroad Commission of Texas for customers in the unincorporated areas of their service area. The Railroad Commission rates are based upon a March, 2004 test year which is now more than a year old and out-of-date. The Commission's review was based primarily upon testimony of witnesses supplied by CenterPoint Energy with no testimony from the cities. There has not been a thorough review of CenterPoint's rates since 1994. CenterPoint has indicated that the new rate schedule will mean an increase of$4.96 per month for the typical residential customer and a decrease of$6.49 per month for a typical general service, small commercial customer. It is also represented that these new rates will increase the revenue for the company by $1,723,664 per year. If a suspension is not implemented, these rates are due to become effective for bills rendered on or after August 4, 2005. It is recommended that the council suspend for 90 days the effective date for the adoption of the rates and authorize the city to participate with other cities in the CenterPoint Energy Beaumont/East Texas service area to hire attorneys and consultants to represent the City of Beaumont in the review of this application. BUDGETARY IMPACT Cities are entitled to rate assistance and cost reimbursement of their reasonable rate case expenses for participating in/or conducting a rate-making proceeding. We expect that, as in the past, the City of Beaumont will be reimbursed for any expenses incurred in this matter. PREVIOUS ACTION None. SUBSEQUENT ACTION Depending on the progress made in the case, the council may be called upon to enact a settlement ordinance enacting new rates for the company or you may be asked to enact an ordinance establishing rates for the company which likely, if they were not agreed to by the company, would be appealed to the Railroad Commission. RECOMMENDED BY City Manager and City Attorney. RESOLUTION NO. RESOLUTION OF THE CITY OF BEAUMONT,TEXAS,AUTHORIZING THE REVIEW INTO THE REASONABLENESS AND PRUDENCE OF THE PROPOSED RATES OF CENTERPOINT ENERGY'S BEAUMONTIEAST TEXAS DIVISION ("CENTERPOINT GAS"); SUSPENDING THE EFFECTIVE DATE FOR THE PROPOSED RATES OF CENTERPOINT GAS NINETY (90) DAYS; AUTHORIZING THE PARTICIPATION IN A COALITION OF CITIES KNOWN AS ALLIANCE OF CENTERPOINT MUNICIPALITIES (ACM) IN ORDER TO HIRE ATTORNEYS AND EXPERTS WITH OTHER CITIES SERVED BY CENTERPOINT GAS; AUTHORIZING PARTICIPATION IN OTHER PROCEEDINGS RELATED TO CENTERPOINT'S RATE REQUEST; REQUIRING REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES; DIRECTING THE CITY CLERK TO SEND A COPY OF THE RESOLUTION TO CENTERPOINT; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT;AND DECLARING AN EFFECTIVE DATE FOR THIS RESOLUTION. WHEREAS, on or about June 30, 2005, CenterPoint Gas filed a Statement of Intent with the City Clerk in order to change rates and increase revenues; and, WHEREAS, according to CenterPoint Gas the new rates would go into effect on August 4, 2005; and, WHEREAS, in order to properly review the requested rates it will be necessary for the City of Beaumont to suspend the proposed effective date for ninety (90) days; and, WHEREAS, in order to properly review the proposed rates efficiently and thoughtfully it is helpful to join with other East Texas and Southeast Texas cities to form a coalition of cities to evaluate and make recommendations with regard to or related to the Statement of Intent; and, WHEREAS, the coalition of cities shall operate through a Steering Committee composed of members appointed by the City Councils of the participating cities; and, WHEREAS, pursuant to Section 103.022 of the Texas Utilities Code reasonable municipal expenses associated with rate case proceedings are reimbursable by the gas utility; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: Section 1. THAT the statements set out in the preamble to this resolution are adopted herein as if fully set forth herein. Section 2. THAT the proposed effective date by CenterPoint Gas is suspended for an additional ninety (90) days after the date the schedule would otherwise be effective. Section 3. THAT the City of Beaumont(hereinafter"City") is authorized to coordinate with other cities in a coalition of cities known as Alliance of CenterPoint Municipalities (ACM) and authorizes the Steering Committee to hire and direct legal counsel and consultants, to negotiate with CenterPoint Gas, to make recommendations concerning the requested change in rates, and to direct any administrative efforts or litigation associated with or related to CenterPoint Gas' Statement of Intent. Section 4. THAT the City employs Jim Boyle and Dan Lawton to represent the City with regard to the Statements of Intent filed at the City and at the Railroad Commission of Texas and to employ such rate experts as are necessary as recommended by the steering committee for the Alliance of CenterPoint Municipalities. Section 5. THAT the City is authorized to intervene or participate in any proceeding related to the Statement of Intent filed by CenterPoint Gas on June 30, 2005. Section 6. THAT the City, in coordination with the Steering Committee cities, shall review the invoices of its consultants for reasonableness before submitting such invoices for reimbursement pursuant to Section 103.022 of the Gas Utility Regulatory Act. Section 7. THAT CenterPoint Gas shall promptly reimburse the City's rate case expenses. Section 8. THAT upon adoption the City Clerk is hereby directed to send a copy of this resolution to: Mr. Charles Harder, Executive Director of Rates, CenterPoint Energy Entex, P.O. Box 2628, Houston, Texas 77252-2628. Section 9. THAT the meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Chapter 551, Texas Government Code. Section 10. THAT this resolution shall be effective immediately upon passage. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 19th day of July, 2005. - Mayor Guy N. Goodson - ATTEST: City Clerk 2 July 19, 2005 Consider approving a bid for the purchase and installation of pumps and equipment for use in the East Virginia stormwater lift station • A.. City of Beaumont Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Kirby Richard, Internal Services Director MEETING DATE: July 19, 2005 AGENDA MEMO DATE: July 13, 2005 REQUESTED ACTION: Council approval to award a bid for the purchase and installation of pumps and equipment for use in the East Virginia stormwater lift station. RECOMMENDATION Administration recommends award of a bid for the purchase and installation of two(2)pumps and motors, two (2) controllers, and one (1) main circuit breaker in the amount of$73,650 to Placo, Inc. BACKGROUND The East Virginia lift station has been in service since 1967 with the existing two (2) pumps, though they have been reconditioned on several occasions since their installation. One of the existing pumps is damaged beyond repair and is currently out of service. It is believed that the other has deteriorated to a point that failure is imminent. The electrical equipment in the station is that originally installed. The equipment specified in the bid will provide for the installation of new pumps, motors, controllers, circuit breaker, and associate electrical equipment. This lift station is vital to relieving water levels in the East Virginia and MLK underpass during heavy rain events. The pumps specified in the bid have 4,000 and 5,000 gallon per minute pumping capacities, respectively, which will restore the lift station to its intended capacity. Bid notices were provided to nine (9) vendors, with two (2) responding with bids. The bids received are as follow: Purchase and Installation of Pumps and Electrical Equipment July 13, 2005 Page 2 Vendor Manufacturer Completion Time Total Bid Amount Placo, Inc. Cascade 150 calendar days $73,650.00 Beaumont,Texas Model 12 MFCH Allco Inc. Cascade 150 calendar days $80,559.00 Beaumont, Texas Model 12 MFCH The pumps carry a one (1) year parts and labor warranty. BUDGETARY IMPACT Funds are available for this expenditure in the Public Works Department's operating budget. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Internal Services Director and Public Works Director.