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HomeMy WebLinkAboutMIN JAN 14 1986 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD JANUARY 14, 1986 - 5:30 P.M. BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in regular session this the 14th day of January, 1986, with the following present: HONORABLE: William E. Neild Mayor Joseph D. Deshotel Councilman At Large G. Wayne Turner Councilman At Large Nell Pruitt Weisbach Councilman, Ward I Mike Brumley Councilman, Ward II Audwin Samuel Councilman, Ward III David W. Moore Councilman, Ward IV C. A. Shelton Interim City Manager Hugh Earnest Asst. City Manager Lane Nichols City Attorney -000- The Invocation was given by Mayor Neild. The Pledge of Allegiance was led by Mayor Neild. -000- The following Consent Agenda items were considered: Approval of the Minutes of the regular city Council session held January 7, 1986; Resolution 86-6 authorizing release of $425,000 in securities held by MBank, Beaumont, as collateral for City deposits; Resolution 86-7 appointing Diane Osan, Laurie Hall Leister, Herschel Hobson, Johnny Walker and Rette Browning to the Historical Landmark Commission, terms to expire October 31, 1987 and appointing John McAtee to the Parks and Recreation Advisory Committee, term to expire June 30, 1987; Resolution 86-8 authorizing renewal of Magazine Index for one year for the Library system at an amount of $4,146.25; Resolution 86-9 accepting for City maintenance sanitary sewer improvements - 165 feet of 6 inch sanitary sewer line in Tracts A, B, C, and D - constructed in Westerrace Addition; Resolution 86-10 authorizing purchase of Parcel No. 50, 13,420 square feet out of Lot 13, Block 35, Arlington Addition from Margaret Tortoris Smith at $26,666, for the M. L. King, Jr. Parkway/Spur 380 Project; -5- January 14, 1986 Resolution 86-11 authorizing the Legal Department to begin eminent domain proceedings against Gui Duc Hung and Tran Thi Hue, the owners of Parcel No. 1879 11,674 square feet out of the David Brown League, Abstract 5, (owners rejected the State's offer of $24,000); and Resolution 86-12 authorizing purchase of 600 feet of hose for a sewer jet machine used in the Water Utilities Department from American Hose at $1,205.00. The Consent Agenda was . approved on a motion made by Councilman Brumley and seconded by Councilman Turner. Question: Ayes: All Nayes: None -000- Public comment was called for Agenda Items 1 through 11. No citizens wished to address Council concerning these items. -000- Public hearing to consider Gulf States Utilities Company rate increase request was held: MR. NICHOLS, CITY ATTORNEY: In a moment, you'll open the public hearing required by the Public Utilities Regulatory Act's Section 43C. GSU had filed the request for an increase in electric rates and the City has original jurisdiction over that determination. You suspended the rates until February the 3rd and hired consultants, Beck and Company, who have been working on an analysis of the case. As I say, the Utility Regulatory Act requires that this public hearing be held. Specifically, it says that "the City will enter on a hearing to determine the priority of such change. " In the past, you have allowed Gulf States a period of time, as long as they would like, to make whatever presentation they feel appropriate; then we have taken comments and testimony from interested citizens on the subject. Given that preface, I would request that the Mayor open the public hearing and allow Gulf States to enter their testimony first. Mayor Neild opened the public hearing. Mr. Arden Loughmiller, Vice President of the Beaumont Division of Gulf States Utilities, told Council that GSU had filed two (2) rate cases for Council's consideration, one called for including the recently completed River Bend Nuclear Plant in the rate base and the second was an alternate case which treats River Bend as a plant still under construction; but, since the Public Utilities Commission has ruled that only the alternate case will be considered under their jurisdiction, they asked that the City consider the construction work in progress case. He told Council this case proposes an overall increase in revenues of 16-1/2 percent and would increase residential rates by 6-1/2 percent. -6- January 14, 1986 Mr. Loughmiller briefly told Council that the River Bend Nuclear Plant was built because of the fuel costs - Arab Oil Embargo during the 1970's causing the cost of natural gas to sharply rise and Congress passed the Fuels Use Act in 1978 with provisions that said no new gas-fired generators could be built and that gas could not be used in existing generators beyond 1990 which caused diversification to other fuel mixes - coal or nuclear power. Mr. Loughmiller told Council that Gulf States Utilities had built a coal plant, had participated in a second coal plant, and have completed River Bend Power Plant in Louisiana, which generated its first commercial power on December 3, 1985. Mr. Nichols asked Mr. Loughmiller with reference to the CWIP case in Austin, the PUC case that was filed by GSU in the Environs or Rural areas, if Beck had been provided an additional thirty (30) days in which to file testimony in that case over and above the normal period of time. Mr. Loughmiller did not know the answer but is to furnish the information when available. Mr. Nichols said that "it is my understanding that our consultant Beck and also the consultant for the other cities has received an extension of time in which to file testimony in the Environs case - the other case that is filed up in Austin before the PUC. We are working against a February 3rd deadline within this Council must act to set rates. It seems likely now that Beck, if they have a number for us, the recommendation, it will not be as accurate and complete as it could be because they have additional time to do this. I would like to make a formal request of GSU, that we receive an extension to act at the local level that concomitant or the same as any extension that was granted at the PUC in the Environs Case and I would like to make formally and I would like to have a response back, if I could." Mr. Gene Darst, 585 Iowa; State Representatives Al Price & Frank Collazo; Mr. Paul Maddingly, 2495 Louisiana; Mr. Earl Richards, 1161 S. 11th; Mrs. Joyce Roddy and Mr. Henry Dannenbaum spoke against the proposed rate increase request by Gulf States Utilities Company. Mrs. Delia Harrington, 815 Willow, addressed Council to express her concern for the confusion that might result if another electric company were to operate within the City. -000- Proclamations were issued: "School Nurses Week in Beaumont" - January 20-26, 1986 and "School Nurses Day" - January 22, 1986. -000- Ordinance No. 86-2 amending the Junked Motor Vehicle Ordinance was considered: ORDINANCE NO. 86-2 ENTITLED AN ORDINANCE AMENDING CHAPTER 13, SECTION 13-15(H) OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT CONCERNING JUNKED MOTOR VEHICLES; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. -7- January 14, 1986 The ordinance was approved on a motion made by Councilman Deshotel and seconded by Councilman Samuel. Question: Ayes: All Nayes: None -000- Ordinance No. 86-3 amending the City's Fire Prevention Code by adding Division 9, Unlawful Spills Penalty, was considered: ORDINANCE NO. 86-3 ENTITLED AN ORDINANCE AMENDING ARTICLE XIX OF THE FIRE PREVENTION CODE OF THE CITY OF BEAUMONT BY ADDING DIVISION 9 ENTITLED "UNLAWFUL SPILLS PENALTY" WITH SECTION 13-19.901 ENTITLED "UNLAWFUL SPILLS" AND SECTION 13-19.902 ENTITLED "PENALTY"; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL; PROVIDING FOR A PENALTY; AND PROVIDING FOR PUBLICATION. The ordinance was approved on a motion made by Councilman Weisbach and seconded by Councilman Turner. Question: Ayes: All Nayes: None -000- Ordinance No. 86-4 amending the Code of Ordinances relating to speed limits was considered: ORDINANCE NO. 86-4 ENTITLED AN ORDINANCE AMENDING CHAPTER 26 SECTION 26-23 AND 26-24 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT TO ESTABLISH MAXIMUMS AND MINIMUMS IN CERTAIN ZONES; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. The ordinance was approved on a motion made by Councilman Brumley and seconded by Councilman Samuel. Question: Ayes: All Nayes: None -000- Resolution 86-13 appointing the Reverend R. D. Carrington, Sr. , Beverly J. Hatcher, Suzy Juncker, Dr. W. J. Lett, Ben Rogers, Lin Owen, Marie Hubbard, Josh Allen, Dr. Bettye Smith, Nancy Neild, Tanya Lee, Betty Leaf, Dr. Richard Price and Claudia Deshotel to establish the M. L. King, Jr. Parkway Commission, terms expiring January 1, 1990 was approved on a motion made by Councilman Samuel and seconded by Councilman Weisbach. Question: Ayes: All Nayes: None -8- January 14, 1986 Resolution 86-14 rejecting bids on two sanitary sewer improvement projects - Contracts 17E and 13C and authorizing development of revised plans and specifications for the projects (low bid received for Project 17E was 45 percent above the estimate and the low bid received for Project 18C was 46 percent above the estimate) was approved on a motion made by Councilman Brumley and seconded by Councilman Samuel. Question: Ayes: All Nayes: None -000- Resolution 86-15 authorizing expansion of the Community Development Strategy Area to include Census Tracts 1.03, 11, 12, 14, 16, 21 and all of 19 and 20 was approved on a motion made by Councilman Samuel and seconded by Councilman Turner. Question: Ayes: All Nayes: None -000- Resolution 86-16 authorizing funding for certain Historic Preservation Projects from CDBG B-84-MC-48-0003 for restoration work for the exterior of the structures and authorizing contracts for funding with the Goodhue Building at 398 Pearl Street; Land Manor, Inc. , at 1608 Orange and Samuel James at 1850 Sabine Pass was approved on a motion made by Councilman Brumley and seconed by Councilman Weisbach. Question: Ayes: All Nayes: None -000- Resolution 86-17 authorizing purchase of one (1) 3/4-ton pickup truck from Kinsel Ford of Beaumont at $11,965.30; five (5) 1/2-ton pickup trucks from Premier Pontiac at $43,286.13 and two (2) 1/2-ton pickup trucks at $15,300.00, two (2) 3/4-ton pickup trucks at $20,050.00 and one (1) 1-ton pickup truck at $12,925.00 from Beaumont Motor Company was approved on a motion made by Councilman Deshotel and seconded by Councilman Brumley. Question: Ayes: All Nayes: None -000- Ordinance No. 86-5 setting January 21, 1986, at 1 :15 p.m. , as the date for a public hearing on Gulf States Utilities Company's current electric rates was considered: ORDINANCE NO. 86-5 ENTITLED AN ORDINANCE SETTING A PUBLIC HEARING FOR THE PURPOSE OF DETERMINING WHETHER THE RATES CURRENTLY BEING CHARGED FOR ELECTRIC UTILITY SERVICE BY GULF STATES UTILITIES COMPANY IN THE CITY OF BEAUMONT, TEXAS ARE JUST AND REASONABLE AND TO DETERMINE JUST AND REASONABLE RATES TO BE CHARGED BY SAME UTILITY COMPANY. -9- January 14, 1986 The ordinance was approved on a motion made by Councilman Deshotel and seconded by Councilman Turner. Question: Ayes: Mayor Neild Abstained: Councilman Councilman Weisbach Deshotel Councilman Turner Councilman Brumley Councilman Samuel Councilman Moore -000- Resolution 86-18 authorizing employoment of O'Brien-Kreitzberg and Assocsiates to perform a prudency audit relating to the Gulf States Utilities Company rate increase request was approved on a motion made by Councilman Deshotel and seconded by Councilman Brumley. Question: Ayes: Councilman Nayes: Mayor Neild Deshotel Abstained: Councilman Councilman Turner Weisbach Councilman Brumley Councilman Samuel Councilman Moore -000- Resolution 86-19 authorizing the City Manager to submit a pre-application to the Texas Historical Commission for a Certified Local Government Grant was approved on a motion made by Councilman Brumley and seconded by Councilman Turner. Question: Ayes: All Nayes: None -000- Mayor Neild announced a gift of $100,000 had been received from Mr. and Mrs. Ben Rogers to establish the Julie Rogers Trust for the preservation of the interior of the Julie Rogers Theatre for the Performing Arts. -000- Mr. C. L. Sherman, Jr. , 585 Belvedere; Mrs. Leona Henson, 710 Goliad; Mr. Charles Henson, 710 Goliad and Mrs. Judy Schuldt, 2229 Broadway; addressed Council to express their concerns for cuts in services, especially in investigative services, and operation of the Police Department. Mr. Al Pollans, 4445 Thomas Glenn, addressed Council to object to the employment of additional consultants for a prudency audit for Gulf States Utilities Co. rate increase request and to make predictions of the outcome of such an audit. Mr. Herman Rogers, 3006 Bolivar, addressed Council to express his concern for the proposed February layoffs of City employees and Ms. Maxine Savoy, 2960 Emile, an employee of the Health Department scheduled to be cut in February, addressed Council to ask that Council reconsider these proposed layoffs. -10- January 14, 1986 There being no further business, the meeting was adjourned. -000- I, Rosemarie Chiappetta, Deputy 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 January 14, 1986. Rosemarie Chiappe tta Deputy City Clerk -11- January 14, 1986