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HomeMy WebLinkAboutMIN FEB 10 1987 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD FEBRUARY 10, 1987 - 1 :15 P.M. BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in regular session this the 10th day of February, 1987, with the following present: HONORABLE: Maurice Meyers Mayor Bob Lee, Jr. Councilman At Large Andrew P. Cokinos 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 Albert E. Haines City Manager Lane Nichols City Attorney Myrtle Corgey City Clerk -000- The Invocation was given by the Most Reverend Bernard J. Gantor, Bishop of the Catholic Diocese of Beaumont. The Pledge of Allegiance was led by Counclman Brumley. -000- Mayor Meyers welcomed Mrs. Cathy Chavis, principal of Fehl Elementary School, and several of her third grade "Panthers" to today's session. -000- Several proclamations were issued: "The Third Annual Ms. Lindbergh Health Care Center Beauty Pageant" - February 24, 1987; "Child Passenger Safety Week in Beaumont" - February 8-14, 1987; The session was interrupted at this point by five senior students from West Brook Senior High School carrying placards and saying: "We want jobs, we want jobs, we want jobs here, we want jobs. Hello, we are seniors from West Brook High School and we want to ask you all a couple of questions. (Here, each of the five students asked individual questions. ) Where are our jobs and we want to know if they are going to be here when we graduate? Does Beaumont have a future and where is it? What is Economic Development? What can I do to help or my mom and dad to help? What are you doing to clean up Beaumont?" MAYOR MEYERS: Well, first, it's totally unexpected and it's most unusual that anyone would interrupt a Council meeting, certainly with signs as appropriate as that, but, since you've come and asked, we would want to answer every question that've -45- February 10, 1987 MAYOR MEYERS continued: you've proposed by first thanking you for coming today; second, make sure that you and all your classmates, as well as the citizens of our community, pack our Civic Center on the afternoon of February 17th. For those who suspected we were about to get a "Summit" commercial, it's coming right now. But, that is the date of our Economic Summit. The bottom line is the little Panthers and these students and others, young people in our community, who are vital to our very future and our ability to provide a future for them by having jobs. We thank you a lot for coming and the big answer to your question, we believe we'll begin to see its answer come forward at the Economic Summit. That's on the afternoon of February 17th and give us again your names if you would. The students were Pat McCown, Lisa Lang, Trevor Schelp, Shannon Hawkins, and Jennifer Potter. MAYOR MEYERS: Do us a favor and be sure and take a message back to all of your fellow classmates and students. I know they are going to have buses coming to your school to bring the high school students down, so make sure they come. We think the message is one that's most important to all of you and we thank you for participating with us today. Thanks a lot for coming. Issuance of Proclamations continued: "National Sales Month" - February, 1987 and "NFL Day" - February 14, 1987, reads in part: ". . .Beaumont and Southeast Texas has been recognized in the Congressional Record as the Football Capitol of the World and. . . the City of Beaumont, Texas is proud to have the honor of being the host community for the first reunion of the Southeast Texas High School Graduates that went on to prominence in the National Football League . . .and applaud the following outstanding men. . .for bringing credit and recognition to our area: Ernie Holmes, Steelers; Dudley Meredith, Jets; James Hunter, Lions; Mike Holmes, 49'ers; Cliff Larsen, Jets; William Graham, Lions; Bud Hebert, Giants; Kenneth Pope, Patriots; Sam Adams, Patriots; Gus Holliman, Jets; Jerry Levias, Oilers; Charles Adams, Eagles Draftee; Hebert Harris, Saints; Alvin Maxson, Saints; Maurice McCloney, Falcons Draftee; Bubba Bean, Falcons; John Clayton, Bears; H. K. Foster, Rams Draftee; C. L. Whittington, Oilers; Floyd Dixon, Falcons; Vance Bedord, Cardinals; Bobby Leopold, Packers; Goose Gonsoulin, Rams; Dwight Harrison, Broncos; Joe Washington, Redskins; Greg Hill, Chiefs; Louis Kelcher, Chargers; Anthony Guillory, Rams; Robert Frazier, Steelers; Wayne Moore, Dolphins; Bobby Pollard, Cardinals; Charles Ford, Bears; Chris Speyrer, Colts; Darryl Smith, Browns; Kenneth Harrison, 49 ers; Steve Worster, Rams; Kevin McArthur, Jets; Pat Gibbs, Eagles; Ed Hebert, Cowboys; Danzell Lee, Redskins; Len Garrett, Packers; Rufus Cormier, Bills #2 Draftee;' Kevin Bell, Jets; Reggie Garrett, Steelers; Ernie Ladd, Chiefs; Charles Warner, Bills; William Harris, Saints; Garland Boyette, Oilers; Tommy Smiley, Bengals; Eric Harris, Cardinals; Reginald Lewis, Buccaneers; Harry Gunner, Bengals; Jim Wolf, Steelers; Jeff Nelson, Buccaneers; Herman Fontenot, Browns; Tody Smith, Oilers; Tim McKyer, 49'ers; Cliff Odom, Colts; Bubba Smith, Colts; Charles Alexander, Bengals; Warren Wells, Raiders; Mel Farr, Lions; Donald Bean, Falcons; Alvin LeBlanc, Cowboys, Miller Farr, Chargers and W. R. Smith, Jr. , Bills. -46- February 10, 1987 Mayor Meyers called an Executive Session of City Council, pursuant to Section II(e) of the Texas Open Meetings Act, to consider contemplative and pending litigation, to be held immediately following the City Council Workshop Session. -000- The following Consent Agenda items were considered: Approval of the Minutes of the regular City Council session held January 27, 1987; Resolution 87-21 authorizing the pledge of $930,000.00 in securities and the release of $500,000.00 in securities held as collateral for City deposits by Texas Commerce Bank; Resolution 87-22 reappointing Larry Porter to the Parks & Recreation Advisory Committee for a term to expire June 30, 1989; Alice Dyes to the Senior Citizens Advisory Committee for a term to expire September 30, 1989; appointing Margaret Sockler to the Clean Community Commission for a term to September 30, 1989; Joan Morrow as Vice-Chairperson, Liz Karnicki, M. S. Licensed Professional Counselor, Roberto Flores, terms to June 3, 1988 and B. J. Fleshner, Director of the Rape Crisis Center, term to June 3, 1989 and June Bordelon, Program Coordinator, Program for Human Services, term to June 3, 1989, to the Beaumont Advisory Commission for the Prevention of Child Abuse and Neglect; Resolution 87-23 authorizing execution of an agreement with David Alberts for a license to encroach for a 10-foot by 20-foot portable building to be situated on the east 9 feet of a 31-foot-wide utility easement across the rear of 1725 Linn-s Way and described as Lot 15, Block 9, Beaumont West Addition, Section 4, for a one-time license fee of $500.00; Resolution 87-24 authorizing execution of an agreement with Mary Jane Mouton, Realtor, agent for owner GMAC Mortgage Corporation for a license to encroach 11.1 foot into a 20-foot utility easement at 1240 Galway Drive and described as Lot 14, Block 37, Dowlen West, Unit XXI, for a swimming pool and decking for one-time license fee of $500.00; and Resolution 87-25 authorizing the purchase of Parcel No. 26 (890 square feet out of Lots 5 and 6, Block 4, Cartwright Terrace Addition) for the College Street T.I.P. Project from Carlo J. Malley, Jr. , et al for $10,204.00. The above-listed items of the Consent Agenda were approved on a motion made by Councilman Moore and seconded by Councilman Cokinos. Question: Ayes: All Nayes: None -000- -47- February 10, 1987 Public comment was allowed for Agenda Items B through F: Mr. Eddie Evans, Reed Service Company, and representing the Mechanical Contractors Association and most of the Air Conditioning Contractors in the area, addressed Council "to comment on a couple of major items: first, the insertion of Item A 103.2.3, which is the Designer Name qualification that would make it mandatory that any building other than family housing that would be of 5,000 square foot or larger in area be designed and stamped by a Registered Engineer. " Mr. Evans stated that this statute was placed in State law in 1934 but said that it has never been enforced across the State nor in the City of Beaumont and objected to the addition to and enforcement of this requirement to the City Code, saying that it would increase the cost of new construction and those costs would be passed on to the consumer at a time when new businesses are being encouraged to Beaumont and existing businesses encouraged to expand. Mr. Evans urged Council to keep the current code as is and said that he felt this requirement could be handled by the existing Code, saying that any law can be enforced under the conditions that are written in our present Code; but continued to say that some of these laws do not have to be enforced if the City chooses not to. In addition, Mr. Evans objected to the proposed requirement for posting of permits. He said, "we feel that posting of permits should basically be for new construction. We do not feel that it should be for changing out a little air conditioning unit at your house that is going to take about three hours to go out there and change it out. We don't feel like that we should run our costs of doing business up and your cost as a consumer by having to take a permit out to your house, even say three or four hours after the man has already finished the little three hour job, post it in a conspicuous place, before we can get the inspector to come out there and give us a final inspection on that little three hour change- out. We don't feel that's a logical thing to have to do. We feel like it is going to increase our costs and it is going to increase the cost of the consumer. And, in closing, let me say that almost all of these proposed changes - there's one or two here that would really do anything to protect the health and welfare of our community and the safety of our community. The rest of them are bookkeeping type functions that are simply going to run costs up on our jobs and to our people. I think it would really stunt our economic growth rather than promote it and I don't feel that's what we need to be doing at this particular time. I would like to suggest that we've got a good Code. Let's stay with our Code; let's not make any changes in it right now. If we want to change it, let's take some good hard looks at it over the years and let's change it somewhere down the road and not when we have the kind of economic situation that we already have in the City of Beaumont. Thank you. " Mr. Gene Meshwert, Comfort Zone Company, 6930 College, addressed Council to say, "I would ask the Council not to approve this Southern Mechanical Code in its present form. I concur with Mr. Evans on all points made. In addition, on the Designer Name on our prints, of the 50-some-odd companies that's in the air conditioning business in the City of Beaumont, two, maybe three have Tegistered Engineers on their payroll. This would be somewhat a restriction of trade and possibly unfair business practices, should we adopt that and limit this type work to three companies. Thank you. " -48- February 10, 1987 MAYOR MEYERS: In the interest of time, I would like to propose that this item be removed from Council consideration. COUNCILMAN MOORE: Second. MAYOR MEYERS: If there's to be any further discussion, then it would be referred back to staff after Council would choose to do so. COUNCILMAN COKINOS: Now, is that both of them or just . . . MAYOR MEYERS: B.3. , the whole package. . .B.3. I made that in the form of a motion and I believe we have a second. CITY MANAGER RAINES: May I ask a question? Is this essentially a tabling of the action pending . . . . . . MAYOR MEYERS: Well, I think to try and dissect it today would be extremely time-consuming and, so, I guess to be definitive, I'd like it to go back and it would be discussed again when it's asked to be placed at a Workshop. CITY MANAGER: By Council? MAYOR MEYERS: Yes. COUNCILMAN COKINOS: Mr. Mayor, I would also ask that this A 103.2.3. be placed in that same category because I don't quite . . . . . . MAYOR MEYERS: It's the whole piece. Yes, sir. Any further discussion on the part of Council? I have a motion and a second. Those in favor, signify by saying Aye. (All responded favorably. ) Opposed? (None) -000- Resolution 87-26 accepting a donation of 4.952 acres from the Most Reverend Bernard J. Gantor, Bishop of the Catholic Diocese of Beaumont, for right-of- way for the Delaware Street extension (100-foot-wide strip of right-of-way about 2,100 feet long at the Major Drive end of the extension - value estimated at $162,914.00) was considered: MAYOR MEYERS: Thank you, Manager. At this time, I would ask if Bishop Gantor would come forward and, prior to your comment, Bishop, we, on behalf of the citizens of Beaumont, deeply appreciate this contribution to our City. It's a very important tract of land and we thank you very much. BISHOP BERNARD J. GANTOR: Mayor, it is my pleasure to be able to give it to the City - to have the Diocese of Beaumont to give it to the City of Beaumont. Because of the generosity of three gentlemen - Mr. Thad Heartfield, Dr. Howard Wilcox and Dr. Earl Rafes - the Diocese was given some property in that area and we in turn learned about the plans for a Delaware extension and there was a right-of-way needed and so we were glad to be able to give this almost 5 acres to help bring that about, hopefully, for the good of our City. We very much appreciate being citizens of Beaumont and we are glad that we can help to further the good of the City in making this gift. -49- February 10, 1987 MAYOR MEYERS: Thank you, Bishop. I saw Mr. Heartfield. Are any of the other gentlemen present, Thad? BISHOP GANTOR: Mr. Heartfield is here, Mayor, but not the two doctors. MAYOR MEYERS: I think that Father Marceaux, also. We'd like to recognize him if he's still here. Please convey our deep appreciation to the other gentlemen as well, Thad. I know that it was thought out so that this could be accomplished and, again, Bishop, we thank you very much. Resolution 87-26 was approved on a motion made by Councilman Brumley and seconded by Councilman Cokinos. Question: Ayes: All Nayes: None -000- Ordinance No. 87-4 abandoning a 14 by 500-foot portion of a 31-foot-wide section of unnamed, undeveloped right-of-way adjacent to Lot 2, Block 21, Annie T. Warren Addition and retaining it as a utility easement (requested by Cardinal Square Apartments where fence and tennis courts extend onto right-of- way - a telephone cable is buried in the right-of-way) was considered: ORDINANCE NO. 87-4 ENTITLED AN ORDINANCE VACATING AND ABANDONING A 14' X 500' PORTION OF A 30-FOOT RIGHT-OF-WAY IN BLOCK 21, ANNIE T. WARREN ADDITION, BEAUMONT, JEFFERSON COUNTY, TEXAS, AND PROVIDING FOR RETENTION OF A UTILITY EASEMENT. The ordinance was approved on a motion made by Councilman Lee and seconded by Councilman Weisbach. Question: Ayes: All Nayes: None -000- Ordinance No. 87-5 adopting the 1985 Edition of the Standard Gas Code as amended was considered: ORDINANCE NO. 87-5 ENTITLED ANORDINANCE ADOPTING THE 1985 EDITION OF THE STANDARD GAS CODE AS AMENDED; PROVIDING FOR SEVERABILITY AND PROVIDING FOR REPEAL. The ordinance was approved on a motion made by Councilman Samuel and seconded by Councilman Cokinos. Question: Ayes: All Nayes: None -000- -50- February 10, 1987 Ordinance No. 87-6 calling a Municipal General Election for April 4, 1987, for the purpose of electing a member of the City Council from each of the City's four wards was considered: ORDINANCE NO. 87-6 ENTITLED AN ORDINANCE ORDERING A GENERAL ELECTION TO BE HELD IN THE CITY OF BEAUMONT ON THE 4TH DAY OF APRIL, 1987, AS PROVIDED BY LAW FOR THE PURPOSE OF ELECTING FOUR WARD COUNCIL MEMBERS; PROVIDING FOR PLACES WHERE SUCH ELECTION SHALL BE HELD; APPOINTING OFFICERS TO PRESIDE OVER SAID ELECTION; APPOINTING A CANVASSING BOARD FOR ABSENTEE VOTING; APPOINTING A MANAGER AND JUDGE OF THE CENTRAL COUNTING STATION; PROVIDING FOR NOTICE THEREOF; PROVIDING FOR JOINT ELECTION WITH THE BEAUMONT INDEPENDENT SCHOOL DISTRICT AND THE PORT OF BEAUMONT NAVIGATION DISTRICT AND PROVIDING FOR SEVERABILITY. The ordinance was approved on a motion made by Councilman Weisbach and seconded by Councilman Samuel. Question: Ayes: All Nayes: None -000- Ordinance No. 87-7 amending Chapter 1, Section 1-8.1 of the Code of Ordinances eliminating the culpable mental state requirements in speeding violations was considered: ORDINANCE NO. 87-7 ENTITLED AN ORDINANCE AMENDING CHAPTER 1, SECTION 1-8.1 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT CONCERNING CULPABLE MENTAL STATE; PROVIDING FOR SEVERABILITY AND PROVIDING FOR REPEAL. Section 1-8.1: Culpable Mental State Required as Element of Criminal Offense In each instance in which a criminal offense is established in this Code of Ordinances and any amendment thereto, a culpable mental state is required as an element of such offense except for the offense of speeding. The ordinance was approved on a motion made by Councilman Samuel and seconded by Councilman Brumley. Question: Ayes: All Nayes: None -000- -51- February 10, 1987 Resolution 87-27 authorizing the two-year renewal of a contract with Bevil Oaks which permits EMS Services to be provided within Bevil Oaks at an annual payment to the City of Beaumont of $1,959.00 (Bevil Oaks residents who use the service pay the same standard charges other users pay) was approved on a motion made by Councilman Cokinos and seconded by Councilman Lee. Question: Ayes: All Nayes: None -000- Councilman Brumley complained about the poor condition of Folsom Road and asked that the Street Department continue to do everything possible to maintain the roadway. In addition, Councilman Brumley congratulated Mayor Meyers "on the news today that our fine mayor, though he doesn't look like it, will become a grandfather soon. He found out that his daughter is expecting and now we have a grandfather-to-be. " Mayor Meyers responded by saying, "That's is quite true; one of our daughters will have our first grandchild in October. Thank you. " Councilman Samuel asked if a feasibility study had been done on the stop sign on Blossom at Washington Boulevard, saying that he has received some phone calls about the difficulty in getting out. He requested that a study be done if it has not been done. In addition, Councilman Samuel said, "The second thing is I had some concerns about some of the actions that have occurred over the past week and some wanted to know my feelings about it. So, I will address that and it's concerning the hiring of individuals within the City, as well as the actions of our. City Manager. I fully support the actions of the City Manager in appointing an Interim or Temporary Police Chief to allow all of the applicants equal asset to becoming a possible candidate or becoming the possible Police Chief. I also support the actions of this Acting City Manager. Prior to him coming in, there were a lot of problems, and some of the problems as I understand it, are being ironed out. I sincerely appreciate that. I also support hiring local individuals whenever possible; but what's more important to me is that we hired qualified and the best person for that job. And, it somewhat disturbs me when we look at a position that will manage one of the highest budgeted departments in our City and looking at some of the actions that've taken place over the past couple of weeks, it is very difficult for me to see the professionalism that has been exemplified in those actions. But, I do support the City Manager in his decisions; support the Acting Police Chief and I do support hiring locally; but, I do not support the actions that have been taken in the past weeks concerning the management of that department. Councilman Moore reported that a stop sign was removed from the intersection of West Virginia and Port Arthur Road during construction and requested that the Transportation Department determine if it was intended to be permanently removed but did mention several near accidents since the removal of the stop sign. -52- February 10, 1987 Also, Councilman Moore said, "In line with what Councilman Samuel stated, I think it was somewhat embarrassing to our community early this week to witness, or for those of us to read, the newspaper article in terms of a lawyer coming to the City asking for the removal of a man who is doing a job. It's unfortunate. I think it is somewhat unmerited and it also states that we are looking at the situation critically and I think we are looking at it wrong because we want to penalize a man for doing the job and doing the job that we asked him to do and doing the job in terms of asking for equity within a department that has suffered long because the problems arose and came to us and a search started for a new Police Chief. Mr. Patterson, from what we have gathered and in conversations with our City Manager, is doing a thorough job over there and I think whatever is being done to make the situation better, he is addressing that way. If there are people within the community who feel as if there is a problem with this gentleman, I would hope that your problem would be a constructive one and one that is based on merited facts and not just one of perception. I think as soon as we realize and accept the process is in place and the input we are getting from people across this community, we will probably be a lot better off. The other thing I would like to say in regards to where we are, I am firmly affixed to this process. We stated that several months ago. We said that several weeks ago and, just to make sure the record is correct, we stated, I still stand firmly in support of Mr. Patterson and the action he is taking in the police department. Mayor Meyers said, "I would want to share with Council on an item that appeared recently - actually February 8th - that was circulated throughout the State and it was put out by the Houston Post. It's a 'Travel Texas' piece and fortunately we were able to grab their ear and get, I guess, one of the larger pieces covering our City and where someone would like to visit and the things we would like to see and do. " -000- The Reverend Albert K. Haynes, 2620 Burgundy, president of the Beaumont Chapter of the N.A.A.C.P. and pastor of Fellowship Missionary Baptist Church, addressed Council to express his support of the administration's actions in dealing with Police Department management personnel. Mr. Al Pollans, C.P.A. , 470 Orleans, addressed Council to express his complete support of and admiration for Mayor Meyers and the leadership he gives our City. Mrs. Clara Benoit, 610 Center, addressed Council to present letters in support of hiring a Police Chief from Beaumont. Mr. Albert R. Cook, 2235 Rampart, addressed Council to express his support of the Manager for the recruitment process for hiring a Police Chief. -53- February 10, 1987 Mr. Earl Massey, 6225 Beau View, recently retired Chief Electrical Inspector for the City, addressed Council to complain that the Electrical Code which had been reviewed (last meeting of the Electrical Board was held October 9, 1986) and recommendations made for some local code changes and adoption of the 1987 Code by February 1, 1987 has not been brought to City Council for action and said that he is 'very disappointed in the City staff holding up what our citizens or inputs are put into it - they met I would say approximately six or seven times throughout '86 revising, reviewing the City Ordinance to bring it up to date and I find no action as yet and I find no reason why it shouldn't have been on either City Council meeting that I have attended. " Mrs. Jessie Cooper, 446 Georgetown, addressed Council to compliment the displays for the "City Day at Parkdale Mall" held Saturday, February 7, 1987. Mrs. Cooper also mentioned her inability to find Ewing Street or get adequate directions to the Town Meeting held at 7:00 p.m. , February 3rd at the Douglas Memorial CME Church. -000- There being no further business, the meeting was recessed before continuing witht the City Council Workshop Session held February 10, 1987. -000- I, Myrtle Corgey, 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 February 10, 1987. Myrtle Corgey City Clerk -54- February 10, 1987 + a w EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 CITY MANAGER RAINES: Okay, the next item is a discussion of purchases of fleet replacement vehicles. Typically, this kind of item generally goes direct to Council for consideration and adoption. There are two reasons why we felt it appropriate it to present this item to you prior to recommending any action. The first is the size of the purchase itself, a little over half a million dollars for vehicles. It is reflective of the budget discussions we had last September, but we felt it might be appropriate if there are questions relating directly to the size of the item that it could be discussed today. And, the second and perhaps more important item that we felt would be appropriate to discuss is the issue of the so-called low bidders. I know that there's been a lot of discussion among Council and within the community relative to local preference on bidding, low-bidding, etc. and we think this item directly relates to what could well be a policy question that Council may want to discuss. I would make one more comment - that is that I have reveiwed the process that was . . that went through the . . . that ended up with the culmination of this document and I am essentially satisfied that it was done properly and I would, I think at this point, turn it over to Betty to review with you the process and then open it up to questions. MRS. BETTY DUNKERLEY, DIRECTOR OF FINANCE: This is an additional analysis that we did to sort of help us in in our discussion today. The bids were so complicated. This was really a complicated, complex purchase and bidding procedure and pre-bid conferences and whatever and I would like to more or less walk with you through some documents first and then, perhaps, we can get into a little more about the process. Do all of you have this Council . . . proposed Council letter with you? If you do, I would like to just walk through that. The Council letter, the first three pages, are simply a summary of the low bidders on each of the items that were put out for bid. Starting on the 4th page, there is a bid tabulation for the cars and the vans. You will have an item number for the quantity and then a tabulation from all of the people that submitted a bid. The next page are just footnotes, comments to explain some of the things that either occurred with the bids or a little bit better explanation of some of the exceptions to the specifications. The next tabulation is the one for the trucks and I ended up having them put like "PU 1" to identify it from No. 1 on the vehicle list, so we have the truck list next and then the last possibly 4 pages is a document that we are going to be maintaining really in response to Councilman Cokinos' request of trying to keep informed of where we were in relation to the budget and we carne in I guess a few weeks ago with an item over budget and we wanted to make sure we kept the Council informed when we had other items that were underbudget. So, what this does, it shows the entire budget, then those items that we have recommended for purchase, you will find the cost in the next column and then over on the far right hand side of those pages will be the amounts either over or under budget and with the recommendations that we are bringing to you today, on the last page you will see there about $71 ,000 under budget at this point in time. But, we will keep this updated as you all make awards or recommendations and we should have it available to you at all tunes. EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 2 MRS. DUNKERLEY continued: Now, these . . the bids on the fleet equipment went through the normal bidding procedures. We had a pre-bid conference, we sent out specifications to those vendors who had requested to be put on our bidders' list or who called and requested bid packages. The results . . . all of the bids when they came in were tabulated and reviewed and documented as you find them on that tabulation sheet. The . . . we went through and really just made our recommendation based on the lowest bid that met the specifications. In addition to that, when I got this information in, I said, well, what would have been the difference had we awarded that bid to the lowest local vendor and that second sheet that I handed out to you has that tabulation on it. We took all of the out-of-area vendors and then, right beside that bid, we put the lowest local vendor and came up with the difference and I think it was a net savings of about . . oh, if you rounded it off, $21,000 . . $20,700 or so by making recommendation for the low bid. So, this is basically the information that we want to present to you today that these bids were done following our current procedures and we are making the recommendations based on the lowest bid that met specifications and the net savings is about $21,000. We've followed the State bidding guidelines and we think we are in conformance with those, so we would like to have any questions or recommendations or suggestions that you have at this time. This is not on the Council agenda at this time. It's simply here for you to have whatever input you'd like to give us. COUNCILMAN COKINOS: The sixteen cruisers . . patrol . . for the Police Department. Were they equipped with air condition? MRS. DUNKERLEY: Yes, sir. Now, there were, if you will look on your tabulation sheet, there were also some detective cars that were bid and we had one bid come in from out of town on those detective cars that did not have air conditioning and at this time, there was one other local bid, too; but, at this time there is some discussion as to what we need - what type of car we need for those detective cars and we are not making a recommendation on the detective cars at this time. But, the police cruisers were equipped with air conditioners. They were also . . . bid specifications do require that fob Beaumont, so any delivery costs are included. COUNCILMAN COKINOS: Now, Chuck Miller, according to this bid tabulation, took exception to the specifications, that the bids were without air condition. I am kind of confused there, Mrs. Dunkerley, that . , that . . and this is not on the detective cars, these are on the cruisers. EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 3 MRS. DUNKERLEY: Well, I think it's on Item 2, Councilman Cokinos, and that is the detective cars. If you will look . . . that's why I wanted to walk through these tabulations and these bids. It's a complex document, but if you will look on page 2 of that first bid tabulation, you'll see over on the left hand side where it says Item No. and Item No. 2 is where Chuck Miller bid without the air conditioning and that's for the detective cars. COUNCILMAN COKINOS: Well, it says here bid was for new police cruisers. MRS. DUNKERLEY: Well, that's the type of vehicle he bid. We asked for used detective cars and he turned in an alternate bid and he bid new police cruisers without air conditioners. COUNCILMAN COKINOS: Now, accordinng to the Legal Department, they couldn't do this. They couldn't come back and they didn't originally meet the specifications. MRS. DUNKERLEY: That's right. COUNCILMAN COKINOS: . . . so why isn't Kinsel the low and best bid? MRS. DUNKERLEY: Well, on Item 2, let's see who bid. On Item 2, there . . if you will look on that previous sheet, there are only two bidders, I believe, for used police cars and that's . . . . . . COUNCILMAN COKINOS: I'm not talking about the used police cars . . . I'm talking about the new ones. MRS. DUNKERLEY: Oh, the new police cars, okay, detective cars. Well, that was an alternate bid. We asked . . 2A is an alternate bid. We have 2 and then 2A, but at this time, the real question about why we are not recommending an award on Item 2 or 2A is the fact that the question of what type of car we want to purchase for the used detectives. If we elect to go to say a take home program or something later on where we are going to need different types of cars, so we decided to pass on this at this time until that other question - larger question is discussed. COUNCILMAN COKINOS: May I ask you, Mrs. Dunkerley, that . . where do you get these specifications from . . on these bids? Who gave you the specifications on these bids? EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 4 MRS. DUNKERLEY: All right, the specifications are developed by our Purchasing Agent and the Fleet Manager - that would be Helen Denmon and John Labrie. COUNCILMAN COKINOS: Where'd they get them from? MRS. DUNKERLEY: Well, they have copies of them with you if you'd like to see them. We will have to ask them where they get them. COUNCILMAN COKINOS: Did you not get the specifications, all these specifications from Kinsels? MRS. HELEN DENMON, PURCHASING AGENT: No, sir. We did not. What we do is we have a meeting, Mr. Labrie and I do, with the Majors and the Chief at the Police Department, and they tell us what they need on the vehicles. We write tentative specifications, then we call a pre-bid conference inviting all the prospective bidders and as a result of the pre-bid conference and the feedback from the Chevrolet, Dodge and Ford people, the final specifications are developed. COUNCILMAN COKINOS: By whom? MRS. DENMON: From the feedback of the vendors . . . COUNCILMAN COKINOS: And, who makes the final determination? MRS. DENMON: I do and it's approved by the Police Department, by Mrs. Dunkerley, by Legal and by the Manager's Office prior to our taking bids. COUNCILMAN COKINOS: Yes, ma'am. MAYOR MEYERS: What is item 2? COUNCILMAN COKINOS: It's supposed to be police cruisers, I thought. MRS. DUNKERLEY: Item 2 are the detective cars. MAYOR MEYERS: Where does it show that? MRS. DUNKERLEY: If you will look on the 4th page, Mayor, you will find the bid tabulation and then come down to Item 2 and Alternate 2A. They are detective cars . . . MAYOR MEYERS: Page 4 . . . COUNCILMAN LEE: 4th page of the report . . . EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 5 MRS. DUNKERLEY: Well, let me see how your pages are number . .. . . . it's the first tabulation sheet. Oh, you have a front page. It's the top of page 5, here are the Items, see 2 and the alternate 2A. MAYOR MEYERS: Okay, so my question is where is the result of that shown any where in the say, Chuck Miller Ford . . . . . .? COUNCILMAN COKINOS: It isn't shown. MRS. DUNKERLEY: Where is number 2? MAYOR MEYERS: Yes. MRS. DUNKERLEY: At this time, if you will look on the next page where it comes down to item 2. At this time, we are just not making a recommendation for the purchase of detective cars. MAYOR MEYERS: Let me ask the question. The $10,796 that was bid on Item 1, was the amount of $646 added to air condition that car? MRS. DENMON: No, sir. That figure includes the air conditioning. MAYOR MEYERS: Okay. And, so I am trying to understand it. Item 2 which isn't shown here. MRS. DUNKERLEY: Item 2 we are not making a recommendation for award. MAYOR MEYERS: They bid the same car? MRS. DENMON: The exact same car, Sir, with some modifications. COUNCILMAN COKINOS: What do you mean by modifications? MAYOR MEYERS: Let me finish if I may . . . COUNCILMAN COKINOS: I'm sorry, Mayor . . . MAYOR MEYERS: You're forgiven . . . Let me just finish and track my thought through. What . . now I am confused totally because Item 2 shows 20 each detective cars used on here. MRS. DENMON: Yes. EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 6 MAYOR MEYERS: That's a totally different car, a totally different price. Okay. We reference it here but we don't reference it any where here. It's been pulled out. MRS. DUNKERLEY: Well, probably when we have . . . if this ever comes to Council, we can add a paragraph and say that the detective cars . . . we are not recommending an award at this time. MAYOR MEYERS: Okay, so the explanation. . . . . . MRS. DENMON: Mayor, excuse me, please, but if you will look on the tabulation sheet on the 41 cars, you will see large "2" beside the $9,070 figure, and then look on the page right behind it and see the large "2" - that explains what that figure was. The $9,070 that Chuck Miller bid was . . . we asked for bids on used cars. He bid new police cruisers minus the air conditioning unit and some modifications from the specifications that were used for the police cruisers. I attempted to try to explain that on the number 2 there. MAYOR MEYERS: Okay, I don't have the pages numbered but I am referencing page 2 of the bid tabulation sheet - 41 cars, 1 suburban, 3 vans, and when it speaks to Miller bid without air conditioners was for new police cruisers. Are you suggesting that on the same car he bid for item I which was a new police cruiser at $10,796 that he came back in and that was what he wanted to add the air conditioners to? MRS. DENMON: That's right. MAYOR MEYERS: Even though it was for a used car? MRS. DENMON: We asked for bids for used cars but he bid new cars. MRS. DUNKERLEY: Let me see if I have this right now. On the bid for the used cars, Chuck Miller, used detective cars, Chuck Miller submitted a bid on a new police cruiser minus the air conditioning. Is that right? Okay. COUNCILMAN COKINOS: Are you saying that this $10,796 for the cruisers is without air condition. To add air condition of $646 would bring up to $11 ,442? MRS. DUNKERLEY: No, his bid on the new police cruisers of $10,796, includes the air conditioning. EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 7 COUNCILMAN COKINOS: Then, let's go to detective cars then. MRS. DUNKERLEY: Now, the only thing they mentioned without air conditioning was the bid he put in on the used detective cars. He didn't bid a used car. He bid a new police cruiser without air conditioning. That's that $9,070. That bid didn't meet our specifications anyway. COUNCILMAN COKINOS: See, this is what is confusing me, Mrs. Dunkerley. MRS. DUNKERLEY: It was confusing to us, too. COUNCILMAN COKINOS: It says here Chuck Miller took exception to specifications, bid without air conditioning. Bid was for new police cruisers. After the bid was opened, Miller sent alternate bid to add $646 per unit for air condition. MRS. DUNKERLEY: Okay, but look . . . the key to that is to look over and see what item that relates to. That's item 2 and he bid that in relation to item 2 which was a used detective car, so he didn't meet our specifications. He bid a new car and he bid it without air conditioning. So, really, the only one in that item that met our specifications, would have been East Texas Dodge. They bid used cars and the met the specifications. The only reason that we are not making recommendation at this time is that we want to consider the entire take-home policy with police cars. COUNCILMAN COKINOS: May I ask you one more question? MRS. DUNKERLEY: Sure. COUNCILMAN COKINOS: Why do we have to go so far to Navasota, to Houston for bidders. Why don't you just go on to Detroit or St. Louis and maybe get it a little bit cheaper? But, I am talking about not consider the people in this area. As far as I am concerned, the low bid and the best bid as far as I am concerned because you can get service here in Beaumont and you don't have to take . . . I think you took a truck to Houston from the Sanitation Department, if I can recall, five times to get a body adjusted at Knapp Chevrolet in Houston and you ran up about five hundred miles on this truck. Now, I don't understand why we should take it off the line. We were without service when right here you can get it to Kinsel's or Beaumont Motor Company. You'd probably get it back the same day. EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 8 MRS. DUNKERLEY: What we do when we consider the low bid, Councilman, we consider all the other cost factors that go into that bid, so we don't consider just the bid price, but if there were a cost . . if there were costs associated with delivery, as far as getting the vehicle here, or with going out of town for something to get service, that would certainly be considered; however, with all of the bids that we have here, because the out-of-town vendors are more than 50 miles away, all of the service will be done here locally. COUNCILMAN COKINOS: I know it must be done, I realize that. MRS. DUNKERLEY: No, it will be done locally according to the arrangements with the dealers and the only reason that we send specifications to people outside of the City is that they've requested them. They've either requested to be put on the bidders list or they've called and requested the specifications and, at this point, we do not have any policy other -than open competition and we are going to send those specs to people that legitimately call in and request them. COUNCILMAN COKINOS: Yes, ma'am. MRS. DUNKERLEY: Until you direct us not to do that . . . . . . COUNCILMAN COKINOS: Well, I would . . . of course, it's not up to me to direct but I'd certainly like to see we buy here in Beaumont because they pay taxes. Kinsel's is building two brand new buildings; Chevy Land has built a new building and I'd just like to see this money stay here in Beaumont. MRS. DUNKERLEY: Well, that's why we did the analysis to show the difference in costs. There's approximately $21 ,000 difference in the cost between using exclusively the region . . . I even put in J. K. Chevrolet. I considered them a local as far as comparison with the out-of-town vendors, but, it does result in a savings that we, you know, we can buy two more cars with the savings in that price. MAYOR MEYERS: Who develops the bid list? MRS. DUNKERLEY: I am sorry, what? MAYOR MEYERS: Who develops the bid list? MRS. DUNKERLEY: The bid list is primarily vendors call in or write in and ask to be put on a list and we just have a computer listing and, as they do, we just add their names to the list. MAYOR MEYERS: So, would it be safe to say that there are many others who didn't submit bids. EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 9 MRS. DUNKERLEY: Yes. MAYOR MEYERS: Who might they be in our area? MRS. DENMON: Just in our area, Mayor? MAYOR MEYERS: Yes, ma'am. MRS. DENMON: Jerry Allen Motors, Atterbery Truck Sales, Beaumont White Truck Coleman Bernard, Ray Bernard Olds, Buddy Chevrolet, Energy Country Ford, Golden Imports, the local Hertz leasing dealer, Keating Chevrolet - that's in Winnie - Philpott Motors - that's in Port Neches - Premier Pontiac in Beaumont, Smart's Truck and Trailer in Beaumont, The Truck Ranch in Beaumont. That's all of them in Beaumont that did not submit a bid; the rest of them did. MAYOR MEYERS: Thank you. MRS. DENMON: We sent them "notice to bidders" but they did not . . . COUNCILMAN BRUMLEY: What does the .. . how does the $20,700 relate to what was budgeted for this year. . . . . . (tape changed at this point) . . . the out of town, what is the difference between the local and the budgeted on these particular cars . . . ? MRS. DUNKERLEY: Oh, I'd have to go get my calculator and look at that, unless you've done that analysis. We can get that to you real soon. COUNCILMAN COKINOS: I cannot understand how Knapp Chevrolet or Miller's can buy a car cheaper than Kinsel's or Chevy Land. They are so structured that . . and the profit is so low that I cannot understand why they . . they're so much different from Knapp's or Miller's and I'd . . . and another thing that concerns me - I don't know how we can do it, Mr. Haines, but I've got a bid sheet here from the City of Nederland on Police cars. It shows that J. K. Chevrolet was awarded the bid but Chevy Land was $948 as low bidder; but the City of Nederland gave it to J. K. because they were J. K. Chevrolet in Nederland. MRS. DUNKERLEY: Well, either that or maybe the other vendor didn't meet specifications. EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 10 COUNCILMAN COKINOS: No, they all met specifications and it was on two occasions, one in Nederland and one in the Groves that Chevy Land was the low bidder and . . but they went on and gave it to J. K. , even in the City of Groves, so I don't know. It just . . . we've got to take care of our own. CITY MANAGER: Well, I think there's . . . you are raising what I would consider the central issue here and that's a policy question. We have our instructions and they are very clear and that is we go out and we recommend low bid and if, in fact, the Council wants to consider some preferential treatment to local bidders, I would defer to the City Attorney and Council to, you know, to deal with that from the legal point of view. COUNCILMAN COKINOS: I do appreciate your remark. CITY MANAGER: My thinking at this point is you have, and if I were to look at the biggest disperity, it's in those police cruisers, Item No. 1. The difference between the lowest local bidder and the low bidder on this tab sheet is the equivalent of one cruiser. That's about a spread of about 7 percent. And, again, I think our position at this point is that we have got to look at economics of the City and the budget of the City. Obviously, it ought to also be from a policy initiative point of view be considered from the perspective of the local economy and I know that's got to be a tough . . . tough line to balance, but, right now, we are dealing strictly on low bidder here. COUNCILMAN COKINOS: Well, let's consider not only low bidder but the best bidder, the best for the community, the best for the business here in Beaumont. Not only should we consider the low, let's consider the low and best bid. I mean, I'm . . . . . . CITY MANAGER: You need to tell us what best is. COUNCILMAN COKINOS: Best? I tell you what the best is, Mr. Haines, what's best for Beaumont is the best. They pay taxes . . . . . . CITY MANAGER: Well, I think if I can buy 17 cars for the price of 15, I'll take low bid; that's best. EXCERPT FROM COUNCIL WORKSHOP SESSION FIELD FEBRUARY 10, 1987 Page 11 COUNCILMAN COKINOS: . . . they pay taxes, they hire people and I just think people here in Beaumont should be considered first. I really do. I honestly believe that and we not only should consider the low bid, we should consider the low and best bid. Nederland and Groves take care of their own. Why can't we? CITY MANAGER: I'm sure you are going to hear that in a couple of other issues in the next week or two. COUNCILMAN COKINOS: I think we ought to consider, Mr. Mayor, that consider giving the preference to the people in Beaumont long they meet the specifications and as long as they are low and best bid, as far as I am concerned. MAYOR MEYERS: You don't mean that. COUNCILMAN COKINOS: Low and best, not just low . . . MAYOR MEYERS: Then, none of these would permit us to buy from them. They are not low. COUNCILMAN COKINOS: Well, then the low and best, best for Beaumont . . . MAYOR MEYERS: No, I am serious. I am trying to understand, you are saying best. COUNCILMAN COKINOS: Best. MAYOR MEYERS: What would be determined as best . . . ? COUNCILMAN COKINOS: Best for Beaumont. MAYOR MEYERS: Is there some formula that would be appropriate? COUNCILMAN COKINOS: Well, maybe we can work one out, Mayor. That's the reason of this workshop - get some input from the rest of the Councilmembers . . . MAYOR MEYERS: Sure. EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 12 COUNCILMAN COKINOS: . . . but I am set in concrete in helping these people here in Beaumont. CITY MANAGER: Could I make a suggestion. I know it's done on a lot of State-type bids between States and I know there are some local preference ordinances for cities. My concern, frankly, in going to a strictly local preferential bidding process is that you cannot then be guaranteed or assured that you are in a competitive position and I . . . . . . CITY ATTORNEY NICHOLS: It's also illegal. CITY MANAGER: . . . and I would be very, very concerned. I'm not sure that's best for the City of Beaumont. The City of Beaumont has a stewardship responsibility to be prudent and competitive in the way it conducts its business and that has got to include the purchasing procedures as well. There are, however, some recognitions that local bidding or local vendors ought to be considered on a preferential basis and I know of some States that go as high on these types of things, as high as 5 percent. I would suggest that Council perhaps maybe take a look at the ordinance, again, Lane, you are going to have to advise on this point, but perhaps take a look at the ordinance for the purpose of looking at a preferential category for local bidders; but I would certainly not recommend, if that is the case, of anything, you know, I would really prefer that you consider something around the 2 and 3 spread. If you get above 5 percent, and I think you are talking about some pretty tough competitive protections that are then arbitrarily imposed at the expense of competitive rates. COUNCILMAN LEE: Lane, can you speak to what we are enabled to do legally - the percentage thing? CITY ATTORNEY: No, I think I'd like to research it, if you are interested. I haven't heard a ground-swell of interest in researching it; but, I will be glad to do that and see if there is any area beyond the way we do it now. I know that the way we do it now is lawful and that's to say an economic analysis that deals with the issues that Councilman Cokinos raised - that's to say the time to take it back for service, warranty work, the distance, miles on the vehicle - that type of analysis can be used to justify something other than the low bid, based on the best criteria - the lowest and best criteria. It's a two-tier test. A strictly local preference that says that within 5 percent, we are going to award it to the local bidder, notwithstanding the stewardship or fiduciary relationship that you hold to the public funds, my thinking is. although I'd like to research it, is that that's been struck down - just to pick a percentage and say this is going to be . . . anything in this range is going to be a local preference. But, I will in fact, because it's been a long time since I've looked at it, I will look at it if you would like. EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 13 MAYOR MEYERS: Do you know if when you have a vendor honoring a warranty for a product or a vehicle sold elsewhere, are they compensated when those vehicles come into their shop? MRS. DENMON: They are compensated by the manufacturer, either by Ford Motor Company, etc. MAYOR MEYERS: Yes. So, a unit bought in another city and serviced here, that shop gets so much compensation for that warranty work? MRS. DENMON: That's right. MAYOR MEYERS: How do they look on that? Is that something they are glad to get or sad to get or have they ever expressed that? MRS. DENMON: It appears to me, and I've got to lean on John here a little bit, but a lot of the dealers really 'do like our parts support because we buy an awful lot of parts to keep our vehicles on the streets after the warranty periods are over. MAYOR MEYERS: But, I mean honoring that warranty service? Is that something that they look forward to because of the manufacturer's compensation or is that something they kind of wish never happened. MRS. DENMON: I would have to ask John that because he would be the one who takes the vehicles in for warranty work. MR. JOHN LABRIE, FLEET MANAGER: I've never heard anything, one way or the other. I haven't heard of any problem with doing the warranty work. To my knowledge, the local dealer bills Ford or General Motors, the manufacturer, the same as they bill the customer for a part that is not under warranty. I don't know trouble with it. EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 14 MR. MAXIE PATTERSON: Your Honor, basically the warranty works is that they work out of a warranty book. There's a fixed rate the manufacturer sets out for any particular type of work that is done but a dealer generally makes its profit, usually when the warranty runs off when the vehicle comes back or when we buy individual parts outside the warranty but the warranty is pretty much dictated by the manufacturer. The only other way a dealer can beat another, one dealer up in New England - outside the Boston area, there is a dealer that approximately 200 police cars on the gamble that he is going to sell them - so, primarily the Boston Police Department gets surrounded and he advertises them throughout all of New England and buys them out of state Poilce cars. Because he orders such a large volume, he will get those cars at a lower rate than another competitive dealer who buys in smaller volumn. MAYOR MEYERS: May I ask you a question, because it is time consuming and I didn't know if that time that it takes to do the-- warranty work at what surely are the scheduled rates that are below what they might charge out-of-warranty work, yet their people are having to take care of them. I guess that's where there builds in a feeling of less than joyousness when they are performing warranty work for units that are sold in another city. MR. PATTERSON: They could be caught short because if they said to do a transmission job is going to take two hours, that's all the manufacturer is going to reimburse the dealer for two hours of labor and the part - no matter how long it takes and they have to honor the warranty no matter where that car is purchased. MAYOR MEYERS: How do you want the ground-swell displayed? CITY ATTORNEY: I think it's been displayed. COUNCILMAN COKINOS: May I add one more thing? MAYOR MEYERS: He said he hasn't felt the ground-swell. I don't have an answer but I've got the swell. COUNCILMAN LEE: We've got 65 percent of this deal going outside the City so . . . . . . EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 15 COUNCILMAN COKINOS: May I add one more thing? Isn't it true that Beaumont Motor Company was the only dealership that met all the specifications on the bid? MRS. DENMON: On which one, Councilman? COUNCILMAN COKINOS: On all of them. Also was the only dealership who turned in a complete packet as requested on warranty, ETA and so forth. Weren't they the only ones that hand in this complete package as far as that warranty is concerned? Knapp didn't do it. Miller didn't do it. Marshall didn't do it. MRS. DENMON: Some of the dealers did leave some of "the spec sheets off the back them, yes, sir. I checked with Ms. DeLarue in Legal. She advised me that I could ask for this information after the bids were received at the formal bid opening. She indicated that additional information could be asked for or I can call for verification on any bid but the bid prices could not be changed. COUNCILMAN COKINOS: Beaumont Motor Company bid was the only one that handed in a complete specification. MRS. DENMON: I'm not sure they were the only one, sir. I have all the bids here but they are all so . . . . . . COUNCILMAN COKINOS: I'm talking about on all the bids. MRS. DENMON: Yes, sir. Well, I would have to check each one. I am not sure . . . . . . MAYOR MEYERS: Do you want to make the request? MRS. DENMON: . . . there are so many bids with so many pieces of paper attached; but, I can get the information for you. MR. COKINOS: I would appreciate that, thank you. EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 16 MRS. DENMON: All right. MAYOR MEYERS: My request would be that we perhaps try to satisfy what I think is a uniform desire to provide business at home, while at the same time, recognizing there has to be some competitive balance and if it's a given percentage that local - in other words, if we say it's worth 3 percent to us to do business at home, then that says to our local vendors, "Okay, guys, we want to do business. We've got to protect the citizens' interest but, you know, get with it, and let's try to . . ." I'd like to see us see if we couldn't structure something that would be within our legal rights to you know profess, to let our local vendors know that we want to help the economy. We have a responsibility. We can't carte blanche it. That's not fair to the tax payers, so here's a target and we feel that it is worth this to us to save the time, to know we will get perhaps prompter service and I think you do. I know that in the service business, I've got to tell you, we lixe up the customers' stuff before stuff . . . I shouldn't say that. . . . . COUNCILMAN COKINOS: To show you how close we are trying to do business with the City, the highest amount bid was $97.00 over net cost from . . . less fleet incentive and you know MAYOR MEYERS: What are you talking about? COUNCILMAN COKINOS: I'm talking about on everything that the local dealers were bidding on. The highest . . highest amount bid was $97.00 over the net cost. MAYOR MEYERS: Explain what you mean. I don't follow you. COUNCILMAN COKINOS: Well, there . . there close and structured on everyone of their bids here in Beaumont . . . . . . MAYOR MEYERS: I don't understand what the $97.00 means. COUNCILMAN COKINOS: Well, that's what they netted. That's what they netted on every item they bid. EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 17 MAYOR MEYERS: Explain it to me. COUNCILMAN LEE: He called to find out what their mark-up was as far as the bids they gave and they are making $97. over costs. COUNCILMAN COKINOS: Over costs. It's just that simple. MAYOR MEYERS: Is that to say that everyone else is losing money? COUNCILMAN COKINOS: I don't know but they . . . CITY ATTORNEY: Or figuring cost differently. CITY MANAGER: When I go buy a car, I get $100 over cost . . . . . . COUNCILMAN BRUMLEY: . . . . . . profit margin is is what you want MAYOR MEYERS: Well, what do you think about looking at it as we discussed it? COUNCILMAN COKINOS: I think it's good, Mayor. MAYOR MEYERS: Okay. COUNCILMAN COKINOS: I appreciate it. I think we ought to do that. CITY MANAGER: That'll be fine. CITY ATTORNEY: I'll get a report back to you on the area in which I think you have any flexibility and see what we can do. MAYOR MEYERS- Helen, if we did something like that, it would be the kind of guidelines that, you know, Purchasing could work through and know that clearly there's an indication to our local vendors. I won't speak any numbers today, but I think it would be great if we could come up with a way, you know, at least it says we want to try to do it hear. MRS. DENMON: Mayor, it sure would take a lot of heat off me. MAYOR MEYERS: Yes, ma'am. EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 18 COUNCILMAN COKINOS: Now, wouldn't it help if they knew that, if these dealers in Beaumont knew that, wouldn't they work a little bit closer with you? MRS. DENMON: I hope so. COUNCILMAN COKINOS: I feel they would. I really would feel that every dealer in Beaumont would work that much closer with you to try to do business with the City. MRS. DENMON: Not only with cars but with other . . . COUNCILMAN COKINOS: With everything. MRS. DENMON: Yes, sir. COUNCILMAN COKINOS: I was making reference to this truck thdt ya'll took back and forth to Houston about 4 or 5 times. MR. LABRIE: Mr. Cokinos, I'd like to say something about that. To my knowledge, this has never happened. I know someone misinformed you. The Sanitation Department does not own a truck bought from Knapp Chevrolet. There were four trucks in the Water Department but none of those trucks have gone back. COUNCILMAN COKINOS: What was the latest truck that you had a lot of trouble with as far as the . . . putting the bed on . . . that was my understanding? MR. LABRIE: I don't even know what you are talking about, Sir. COUNCILMAN COKINOS: Okay. I'll get you more information. MR. LABRIE: Thank you. CITY MANAGER: Okay. We'll proceed that way and I guess that will come back to the next Council meeting, I would assume. Hope so. Hope so. COUNCILMAN BRUMLEY: Work Session. You said Work Session? EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 19 CITY MANAGER: Well, the question . . . the one question I have has to do with we understand our direction to come to Work Session with some discussion on a local preferential clause of some kind, but what about this particular item? I'm looking at you two. I mean, is it . . . . . . MAYOR MEYERS: I guess you are saying should we do anything . . . I would yield to Council before I would express my views to see what they were wanting. COUNCILMAN COKINOS: Rather than see $600,000 leave our economy, I would rather for us to wait until we will be able to work it out. CITY MANAGER: It's not $600,000 . . . . . . COUNCILMAN LEE: Is there a problem . . . . . .? MAYOR MEYERS: Well, we have probably some legal obligations based on . . . . . . CITY MANAGER: The question is do we have . . . MRS. DUNKERLEY: We have a bid deadline probably. . . . MRS. DENMON: Today is the last day on the 30 days. I have today contacted the dealers by telephone asking them to extend the time. Two of them of the low bidders have asked me to find out how much time. I feel like that they would extend us the courtesy of extending the time . . . . . . CITY MANAGER: Okay, that answers my question. We will have to come back to Council for Council action on this item. We couldn't deal with this . . . . . . MAYOR MEYERS: A couple of three weeks would be a problem with them? MRS. DENMON: No, sir, I really don't think. They were all very nice. They need to sell cars - everyone of them. They indicated they would allow us some more time. Two of the dealers asked me how much more time we would need. MAYOR MEYERS: Okay. Is that agreeable? (All present indicated yes. ) EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 20 CITY MANAGER: Let's Workshop . . . Workshop. We don't meet next Tuesday so we Workshop in two weeks the ordinance. I really have a legal question and I don't know how to answer it. I guess that's why I'm looking at you two. Can this . . . are we jeopardizing . . . let's assume we deal with an ordinance with a preferential clause. Two questions, A. do we have time to do that and hold these bids firm; B. would we . . . is this necessarily preclude us from changing the ordinance and there by dealing with our bid specifications and throwing them out and having to do the whole thing all over again? CITY ATTORNEY: Well, I don't know what I am going to come up with in two weeks so I can't answer . . . . . . CITY MANAGER: No, I'm just talking about just this. This item right here- a half a million dollars worth of vehicles. CITY ATTORNEY: You obviously . . . you obviously have some risks that someone will not agree to an extension and will not make good on their low bid and they can legally escape, so the worst that happens is you either rebid it or you go to the next low bidder. Now, with reference to assuming that we find that local preference is appropriate and if I find that we have to enact that by ordinance, then I think we might have to change our bid specifications and include that in the bid specifications. If I find that it can be done by the will of the Council on the same day they make the award, just in making an analysis, then it would have no effect on the award of bid except that if they don't agree to extend over the thirty days you could lose a bid - lose a good bid. Is that clear? CITY MANAGER: Okay. So, you will let us know whether to put this on as an action item for Council or whether to continue to Work Session? CITY ATTORNEY: Yes. CITY %kNAGER: Okay. COUNCILMAN COKINOS: Now, the worst you can come out with is we rebid . . . . . . CITY MANAGER: Well, the worst we could come out on is a higher bid. EXCERPT FROM COUNCIL WORKSHOP SESSION HELD FEBRUARY 10, 1987 Page 21 COUNCILMAN BRUMLEY: Yes, you need to keep that in mind, too. COUNCILMAN COKINOS: I don't know but . . . I'm not trying to . . . . . . CITY MANAGER: That's money. COUNCILMAN COKINOS: Well, at least they know what everybody bid and they're certainly not going to bid more. . . . . . . MRS. DENMON: Well, Councilman, they all talked to me about that. With everybody looking at their bids they sure hoped we didn't have to rebid it. COUNCILMAN COKINOS: Well, that's right - they'll bid lower next time. MRS. DENMON: Beaumont Motors was - the one that told me that because they were low on there for nearly $200,000 worth of these vehicles. COUNCILMAN COKINOS: Sure. I think it would be in the City's . . . . . . . . . COUNCILMAN LEE: The thing is that you are jeopardizing Beaumont Motors. CITY MANAGER: Beaumont Motors is the low bidder here of $200,000 . . . you've got to look at both sides here. COUNCILMAN COKINOS: Let's give it to Beaumont Motor Company and forget about the rest. CITY MANAGER: I'm sure . . . oh, I'm sure a lot of folks would like to have Chevys. EXCERPT FROM COUNCIL WORKSHOP SESSION FIELD FEBRUARY 10, 1987 Page 22 MAYOR MEYERS: Where was the total of what it all bid out to? I think you said that. CITY MANAGER: $514,000 . . . MRS. DENMON: $514,632.17 . . . . . . CITY ATTORNEY: You know the problem is you run some bidders off. END OF EXCERPT.