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HomeMy WebLinkAboutMIN SEPT 19 2006 M I N U T E S - CITY OF BEAUMONT Andrew P. Cokinos,At-Large GUY N. GOODSON, MAYOR Becky Ames,At-Large Lulu L. Smith,Ward I CITY COUNCIL MEETING Nancy Beaulieu, Mayor Pro Tem, Ward II Audwin Samuel,Ward III September 19, 2006 Bobbie J. Patterson,Ward IV Tyrone E. Cooper, City Attorney Kyle Hayes, City Manager Rose Ann Jones, City Clerk The City Council of the City of Beaumont, Texas, met in a regular session on September 19, 2006, at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 1:30 p.m. to consider the following: OPENING Invocation Pledge of Allegiance Roll Call Presentations and Recognition ` Public Comment: Persons may speak on scheduled agenda items 2, 4-7/Consent Agenda Consent Agenda Mayor Goodson called the council meeting to order at 1:30 p.m. Pastor Howard Cameron of Trinity Church gave the invocation. Corporal Ricardo Escuadra led the Pledge of Allegiance. Roll call was made by Rose Ann Jones, City Clerk. Present at the meeting were Mayor Goodson, Mayor Pro Tern Beaulieu, Councilmembers Smith, Ames, Samuel and Patterson. Absent: Councilmember Cokinos. Also present were Kyle Hayes, City Manager; Tyrone Cooper, City Attorney; Rose Ann Jones, City Clerk. Proclamations, Presentations, Recognitions "Constitution Week in Beaumont" - September 17 - 23, 2006 - Proclamation read by Mayor Pro Tern Beaulieu; accepted by Betty Owens "PrayBeaumont Day" - Sunday, September 24, 2006 - Proclamation read by Councilmember Samuel; accepted by Pastor Howard Cameron of Trinity Church, Pastor Reggie Lloyd of Praise Christian Center, Pastor Donnie Flippo of Gospel Center Church, Pastor Castille Colbert of the Gospel of Jesus Christ Church and Pastor John Burke of Father's House "Corporal Ricardo Escuadra Day" -Tuesday, September 19, 2006 - Proclamation read by Mayor Goodson; accepted by Corporal Ricardo Escuadra with the United States Marine Corps Public Comment: Persons may speak on scheduled agenda items 2, 4-7/Consent Agenda. None Minutes-September 19,2006 CONSENT AGENDA Approval of minutes - Minutes of September 12, 2006 Confirmation of committee appointments - None A) Authorize the City Manager to accept a Tobacco Compliance Grant from the Texas Comptroller's Office - Resolution 06-273 B) Authorize the City Manager and Chief of Police to execute the Joint Terrorism Task Force Memorandum of Agreement - Resolution 06-274 C) Authorize the acceptance of a ten (10) foot wide water line easement for fire hydrants across Kelley Family Investments property (Cypress Bend Apartments) near the intersection of Gladys and Major - Resolution 06-275 D) Authorize the acceptance of two (2) - ten (10) foot wide water line easements for fire hydrants across Eagles Landing Apartments - Resolution 06-276 E) Authorize the granting of a License to Encroach to LaTEX Investors, L.P. for a brick monument sign in the median of Pointe' Parkway - Resolution 06-277 Councilmember Ames made a motion to approve the Consent Agenda. Councilmember Patterson seconded the motion. AYES: MAYOR GOODSON,MAYOR PRO TEM BEAULIEU,COUNCILMEMBERS SMITH, AMES, SAMUEL AND PATTERSON NAYS: NONE MOTION PASSED GENERAL BUSINESS 1. Consider adopting the FY 2007 Budget - Ordinance 06-055 Article VI, Section 8 of the City Charter states that "the budget shall be adopted by the favorable votes of at least a majority of all members of the Council." Section 9 states that "the budget shall be finally adopted not later than the twenty-seventh (27th) day of the last month of the fiscal year." Proposed appropriation for all funds, net of a contingency, totals $195,044,300. Additionally, a contingency appropriation of$1,500,000 is made for the General Fund. Councilmember Smith moved to ADOPT ORDINANCE 06-055 ENTITLED AN ORDINANCE REFERRED TO AS THE "ANNUAL APPROPRIATION ORDINANCE" ADOPTING A BUDGET FOR THE FISCAL PERIOD BEGINNING OCTOBER 1,2006 AND ENDING SEPTEMBER 30,2007 IN ACCORDANCE WITH THE CHARTER OF THE CITY OF BEAUMONT; APPORTIONING THE FUNDS OF THE CITY OF Page 2 of 9 Minutes-September 19,2006 BEAUMONT;REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH AND PROVIDING FOR SEVERABILITY. Councilmember Beaulieu seconded the motion. AYES: MAYOR GOODSON, MAYOR PRO TEM BEAULIEU,COUNCILMEMBERS SMITH, AMES, SAMUEL AND PATTERSON NAYS: NONE MOTION PASSED 2. Consider accepting the tax roll and establishing the property tax rate for the tax year 2006 (FY 2007) - Ordinance 06-056 Administration recommended that Council accept the Jefferson County Appraisal District's Certified Tax Roll and adopt a property tax rate of$0.659 for the tax year 2006 (FY 2007). The tax rate would be apportioned $0.394553 to the General Fund and $0.264447 to the Debt Service Fund. This distribution represents a shift of 1.3 cents of the dedicated tax rate from the General Fund to the Debt Service Fund. Chapter 26 of the Property Tax Code requires taxing units to comply with truth-in-taxation laws in adopting their tax rates. State law requires all taxing units to adopt their tax rates before the later of September 30 or the 60th day after the taxing unit receives the appraisal roll. Additionally, state law requires the adoption of the Budget before the tax rate. Councilmember Beaulieu made a motion to ADOPT ORDINANCE 06-056 ENTITLED AN ORDINANCE ACCEPTING THE TAX ROLL FOR THE CITY OF BEAUMONT; ESTABLISHING A TAX RATE; PROVIDING FOR LEVYING,ASSESSING AND COLLECTING OF AD VALOREM TAXES FOR THE TAXYEAR 2006; PROVIDING FOR SEVERABILITY AND PROVIDING FOR REPEAL. Councilmember Ames seconded the motion. AYES: MAYOR GOODSON,MAYOR PRO TEM BEAULIEU,COUNCILMEMBERS SMITH, AMES, SAMUEL AND PATTERSON NAYS: NONE MOTION PASSED 3. Consider adopting the 2007 Capital Program - Resolution 06-278 Section 20 states that "the Council shall, by resolution, adopt the Capital Program with or without amendment after the public hearing and on or before the twenty-seventh (27th)day of the last month of the current fiscal year." In the 2007 Capital Program, projects in the design or construction phase total $264,270,000 and include $74,700,000 in Water and Sewer projects, $34,060,000 in General Improvement projects and $155,510,000 in Public Works. The Capital Program was originally submitted to Council on May 12, 2006. It was revised and submitted to Council on August 15, 2006, and reviewed during a work session on August 29, 2006. A public hearing was held on September 12, 2006. Page 3 of 9 Minutes-September 19,2006 Councilmember Smith made a motion to APPROVE RESOLUTION 06-278 THAT THE FY2007 CAPITAL PROGRAM IS HEREBY ADOPTED. A PUBLIC HEARING WAS HELD AT 1:30 PM ON SEPTEMBER 12, 2006 IN THE CITY COUNCIL CHAMBERS, CITY HALL, BEAUMONT, TEXAS. Councilmember Samuel seconded the motion. AYES: MAYOR GOODSON, MAYOR PRO TEM BEAULIEU,COUNCILMEMBERS SMITH, AMES, SAMUEL AND PATTERSON NAYS: NONE MOTION PASSED 4. Consider approving a one year agreement with Blue Cross Blue Shield of Texas(BCBSTX) for employee medical and dental insurance - Resolution 06-279 Administration recommended that council award to Blue Cross Blue Shield of Texas (BCBSTX) a one year contract effective January 1, 2007 for third party administration of the City's fully insured Health Maintenance Organization (HMO Blue Texas), self funded Preferred Provider Organization (PPO) medical plan and a self funded dental plan. Full time city employees are offered medical and dental benefits. The medical and dental benefits consist of a fully insured HMO plan, a self funded PPO plan and a self funded dental plan. There are 530 participants enrolled in the HMO plan, consisting of 456 active employees, 73 retirees, and 1 COBRA participant. There are 835 participants enrolled in the PPO plan, consisting of 729 active employees and 106 retirees. In the dental plan, there are 920 active employees. In June 2006, City staff began analyzing the City's health care costs. Staff also began working with the City's health benefit consultant, McGriff, Siebels and Williams of Texas, Inc., to determine if the City should request bid proposals for the City's HMO, PPO, and dental plans or remain with the current administrator, BCBSTX for 2007. The current agreement with BCBSTX started January 1, 2006 and can be renewed for up to 5 years. After researching the various plans offered in the area, McGriff concluded that BCBSTX offered the most cost effective plans. Because of BCBSTX's extensive network, deep provider discounts, ability to retain continuity of insurance and the lack of other extensive provider networks, staff recommends renewal with BCBSTX. PPO fixed costs increased 3% due to a slight increase in the reinsurance/stop loss rates. Renewal rates for the self funded dental plan did not increase. Final negotiations resulted in the HMO plan renewal being held to a 12.1% increase. This increase was a function of increasing utilization, rising trend factors and increasing provider reimbursements. McGriff recommends that the City remain with BCBSTX because it offers cost effective plans with an extensive network and deep provider discounts. The projected medical rate increase is within industry trends. Appropriation of funds is available in the Employee Benefits Fund. Page 4 of 9 Minutes-September 19,2006 Councilmember Ames made a motion to APPROVE RESOLUTION 06-279 THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXERCISE A CONTRACT RENEWAL WITH BLUE CROSS BLUE SHIELD OF TEXAS(BCBSTX)FORA ONE-YEAR CONTRACT WITH ADDITIONAL OPTIONAL ANNUAL RENEWALS NOT TO EXCEED A TOTAL OF FOUR(4)YEARS COMMENCING JANUARY 1,2007. Councilmember Beaulieu seconded the motion. AYES: MAYOR GOODSON, MAYOR PRO TEM BEAULIEU, COUNCILMEMBERS SMITH, AMES, SAMUEL AND PATTERSON NAYS: NONE MOTION PASSED 5. Consider approving an annual contract for container and solid waste collections at various city-owned facilities - Resolution 06-280 Administration recommended awarding an annual contract to Waste Management of Beaumont, Texas for container and solid waste collection services. Refuse container and collection services are required at approximately thirty-one(31)sites throughout the City. The size of refuse containers required at each location range in size from two (2) to ten (10) cubic yards and the collection frequency rates typically range from one (1) to four (4) times per week. The monthly cost of last year's contract with Waste Management was approximately $3,535.38. The significant increase is attributed to an increase in fuel costs. Funds are available in various departmental operating budgets in the General Fund and in the Fleet Fund, Water Utilities Fund, and the Henry Homberg Golf Course Fund. The estimated annual expenditure is $71,286.84. Mayor Pro Tern Beaulieu made a motion to APPROVE RESOLUTION 06-280 THAT THE BID SUBMITTED BY WASTE MANAGEMENT, BEAUMONT, TEXAS, FOR AN ANNUAL CONTRACT FOR CONTAINER AND SOLID WASTE COLLECTION FOR AN ESTIMATED ANNUAL COST OF$71,286.84 BE ACCEPTED BY THE CITY OF BEAUMONT. Councilmember Smith seconded the motion. AYES: MAYOR GOODSON, MAYOR PRO TEM BEAULIEU, COUNCILMEMBERS SMITH, AMES, SAMUEL AND PATTERSON NAYS: NONE MOTION PASSED 6. Consider approving new rates for the rental of city recreation buildings-Ordinance 06-057 Administration recommended approval of new rates for the rental of city recreation buildings effective October 1, 2006. City recreation buildings include the Alice Keith Community Center, J.P. Richardson Community Center, Rogers Park Community Center, Central Park Community Center, Tyrrell Park Community Center, Sterling Pruitt Activity Page 5 of 9 Minutes-September 19,2006 Center and the Best Years Center. Sprott Park would also be included. The rates would be as follows: $25 per hour with a three hour minimum. Thirty minutes before and after any event would be allowed for set up and take down. Anything over three hours for an event would cost $25 an hour. A charge of $25 would be incurred for set up and take down of tables and chairs. The buildings have been operated by the Recreation Division for a number of years. Current cost are$50 for three hours and $10 for anything over three hours. $25 is currently charged for set up and take down of tables and chairs. The Convention Facilities Division will be responsible for overseeing the rental of facilities beginning October 1, 2006. Currently, the Parks Division rents the facilities. All facilities, including the Civic Center, Jefferson Theatre and Julies Rogers Theatre will be the responsibility of the Convention Facilities Division. The Convention Facilities Division plans to extensively clean the recreation centers and insure that an attendant is on duty when an event occurs. Staff has visited the centers and listed what needs to be done to make them more attractive and usable. Additional rental would be forthcoming since the basic rental is being increased by $25. Councilmember Smith made a motion to ADOPT ORDINANCE 06-057 ENTITLED AN ORDINANCE AMENDING CHAPTER 20 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT TO ADD A NEW SECTION 20-13 ESTABLISHING NEW RENTAL RATES FOR THE RENTAL OF CITY RECREATION BUILDINGS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL; PROVIDING A PENALTY AND PROVIDING AN EFFECTIVE DATE. Councilmember Ames seconded the motion. AYES: MAYOR GOODSON, MAYOR PRO TEM BEAULIEU, COUNCILMEMBERS SMITH, AMES, SAMUEL AND PATTERSON NAYS: NONE MOTION PASSED COUNCILMEMBER COMMENTS COUNCILMEMBER SMITH - NONE MAYOR PRO TEM BEAULIEU - NONE COUNCILMEMBER AMES - NONE COUNCILMEMBER SAMUEL - PLEASURE TO SEE STAFF AND CITY MANAGER WORK SO WELL TOGETHER IN RECENT YEARS; COMMENDED ALL THE WORK DONE TO GET OUR CITY IN SUCH GOOD SHAPE BOTH FISCALLY AND PHYSICALLY; RECOGNIZED MICHAEL STERLING AND SEAN SAMUEL, BOTH LAW STUDENTS, GRADUATES OF OZEN HS, AND FORMER MEMBERS OF THE MAYORS YOUTH COMMISSION Page 6 of 9 Minutes-September 19,2006 COUNCILMEMBER PATTERSON - NONE CITY ATTORNEY COOPER - NONE CITY MANAGER HAYES - NONE MAYOR GOODSON- REMINISCED THAT MICHAEL STERLING SAID THAT HE WOULD SOMEDAY BE MAYOR OF BEAUMONT; THANKED BARBARA OTTO FOR THE OPPORTUNITY TO ATTEND ST. MICHAEL'S GREEK ORTHODOX CHURCH LUNCHEON; HELPED WITH THE CVB ADOPT-A-HIGHWAY PROGRAM ON SATURDAY NEAR TxDOT; PERSONAL THANKS TO THOSE WHO WERE HERE DURING THOSE THREE WEEKS LAST YEAR;SPECIAL THANKS TO ALL THE MEN AND WOMEN OF BEAUMONT AND THE FIRE, POLICE, EMS; FOR THEIR PROFESSIONALISM, PATIENCE, CONFIDENCE AS WELL AS THE WONDERFUL OPPORTUNITIES WHICH LAY AHEAD FOR US Open session of meeting recessed at 2:13 p.m. to enter into Executive Session. EXECUTIVE SESSION Consider matters related to employment, evaluation and duties of a public officer or employee in accordance with Section 551.074 of the Government Code: Chief Magistrate James McNicholas City Magistrate Theodore Johns City Magistrate Craig Lively (This item has been cancelled due to a conflict of schedules and will be discussed at a later meeting.) Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Entergy Gulf States, Inc. (Mayor Goodson announced that he would not participate in the deliberations involving the matters of Entergy Gulf States as his law firm does work for this company.) Following Closed Executive Session, Open session of meeting resumed at 2:40 p.m. 7. Consider amending Ordinance No. 04-068 granting an electric franchise to Entergy Gulf States, Inc. and authorizing the City Manager to enter into an agreement reserving to the end of the term of the franchise agreement the parties' rights to resolve an issue regarding the timing of franchise payments - Ordinance 06-058 Administration recommended approval of an ordinance amendment to Ordinance No. 04- 068 adopted on September 28, 2004 granting to Entergy Gulf States, Inc. an electric franchise which provides compensation for the use of the City's streets, alleys and rights- of-way by Entergy Gulf States, Inc. and authorizing the City Manager to execute an agreement with Entergy Gulf States, Inc. reserving an issue as to the timing of the franchise fee payments to be resolved at the end of the franchise agreement in 2017. Page 7 of 9 Minutes-September 19,2006 The City of Beaumont and Entergy Gulf States, Inc. entered into an electric franchise agreementwhich provided for the accelerated expiration of the existing franchise ordinance and granted a new franchise which included a different method of compensation to the City. This new agreement became effective February 1, 2006. The old agreement provided for payment of base franchise fees on a percentage of gross receipts basis. The new franchise allows for compensation based upon a calculation using a per kilowatt hour unit rate multiplied by the number of kilowatt hours delivered to retail customers within the City of Beaumont. These payments historically have been made on the first day of August of each year for the twelve month period prior to the payment. Because of the acceleration of the termination of the existing agreement and the implementation of the new agreement there was a period of transition which has caused an issue between the City and the Company as to the timing of these payments. The issue is whether the August payments were a prepayment in advance, which is the position of the Company, or a payment in arrears for the preceding twelve month period before the August payment. The problem with the Company's position is that the City does not receive an annual payment for August, 2006. This translates into an estimated loss in revenue in excess of Three Million ($3,000,000) Dollars. After several discussions and meetings, the parties have agreed to resolve the issue with the Company continuing to make the annual payment on August 1 of each year beginning August, 2006; and reserving the issue as to whether the payment is a prepayment or payment in arrears until the year 2017, which is before the end of the term of the contract in 2018. This reservation would take the form of a letter agreement between the parties executed by the City Manager as authorized by the City Council. This amendment resolving the franchise annual payment issue should result in a payment in excess of Three Million ($3,000,000) Dollars within twenty days of the acceptance of the agreement by Entergy Gulf States, Inc. Mayor Pro Tem Beaulieu made a motion to ADOPT ORDINANCE 06-058 ENTITLED AN ORDINANCE AMENDING FRANCHISE NUMBER 04-068 GRANTED ENTERGY GULF STATES, INC.; PROVIDING FOR AN ANNUAL PAYMENT; AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT RESERVING UNTIL THE YEAR 2017 THE RESOLUTION OF PAYMENT TIMING ISSUE; PROVIDING AN EFFECTIVE DATE UPON ACCEPTANCE IN WRITING BY ENTERGY GULF STATES, INC. Councilmember Ames seconded the motion. AYES: MAYOR PRO TEM BEAULIEU,COUNCILMEMBERS SMITH,AMES,SAMUEL AND PATTERSON NAYS: NONE ABSTAIN: MAYOR GOODSON MOTION PASSED Public Comments (Persons are limited to three minutes) Roberto C. Flores, Sr. 2425 Buchanan Beaumont TX Upset that the Budget and Capital Improvement Plan which was just approved by Council did not include improvement and development plans for the Avenue/College area; felt that Page 8 of 9 Minutes-September 19,2006 the Neighborhood Plan has been completely ignored and they are now searching for outside resources to help develop their neighborhood Open session of meeting recessed at 2:50 p.m. Audio t e are ila a upon request in the City Clerk's Office. Guy N. Goodso ayor AV i�If ' 1to, Rose Ann Jones, T C f City Clerk Page 9 of 9 Minutes-September 19,2006