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HomeMy WebLinkAboutMIN JUN 01 1993 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD JUNE 1, 1993 - 1:30 P.M. BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in regular session this the 1st day of June, 1993, with the following present: HONORABLE: Evelyn M. Lord Mayor Guy N. Goodson Mayor Pro Tem Councilman, Ward II Andrew P. Cokinos Councilman At Large Lulu L. Smith Councilman, Ward I John K. Davis Councilman, Ward III David W. Moore* Councilman, Ward IV Absent: Brian R. Alter Councilman At Large Ray A. Riley City Manager Lane Nichols City Attorney Barbara Liming Deputy City Clerk * (Councilman Moore arrived at 1:55 p.m. during discussion of Main Agenda Item No. 1. ) -000- The Invocation was given by Pastor Oscar Gonzales of Templo Bautista. The Pledge of Allegiance was led by Councilman Davis. -000- One Proclamation was issued: "Coach Alex Durley NFL Football Camp Days, " June 2-5, 1993 . (Received by Kenneth Williams, Camp Director, Patrilla Hebert, Foundation Boardmember, Jerry Ball, NFL Cleveland Browns, Floyd Dixon and Mickey Washington, Washington Redskins. ) -000- Citizen comment was invited on the Consent and Main Agenda items: Mr. Arden Loughmiller, Vice-President of Gulf States Utilities Company, P. O. Box 2951, addressed Council to say they are perplexed by Agenda Item No. 1 directing GSU to justify their current rate structure at this time. He said GSU's earnings are not excessive, based on the rate of return authorized by the PUC in 1991, and that stockholders have not earned a dividend since 1986. Mr. Loughmiller discussed GSU's operating and maintenance cost cuts and improved financial position, compared -118- June 1, 1993 other utility company rates, distributed to Council a GSU rate chart compared to the consumer price index from 1983 through 1992, said a rate review is inappropriate now with issues remaining to be resolved in the courts, including the $1.4 billion River Bend investment that is not in GSU's rate base, voiced benefits of the merger with Entergy Corp. for GSU, its customers and the area economy and said it would be better to focus on these opportunities rather than "continuing the adversarial relationship" which brought about the merger. Mr. Ben Rogers, Rogers Brothers Investments, 595 Orleans, requested Council to waive the requirement that only discussion on the Consent and Main Agendas be received at this time because of a pressing personal need to return to his wife, who is very ill. Council granted Mr. Rogers the opportunity to speak. While he has been unable to attend Council for the past eleven months, Mr. Rogers said he has read in the newspaper about consideration of a loan to the Beaumont Retirement Hotel through Community Development Block Grant funds. Mr. Rogers said he supports this consideration because the Hotel provides not only a specific housing benefit for many elderly, but has an impact on our Downtown area. He discussed government assistance in redevelopment of other Downtown buildings and said he feels this is appropriate action and offered to fully discuss the idea further with Council. Mr. Rogers also addressed Downtown parking problems, but asked that priority be given to Hotel Beaumont. -000- The following Consent Agenda items were considered: Approval of the Minutes of the regular City Council session held May 25, 1993; Resolution No. 93-126 authorizing sale of all "SIG Holdings, Inc. " shares of preferred stock received as compensation for amounts due the City by the company in bankruptcy proceedings in the amount of $. 35 per share; Resolution No. 93-127 authorizing execution of three (3) Licenses to Encroach with Kerr-McGee Chemical Corporation (KMCC) on street rights-of- way on Miller Street, Hazel Street and Pine Street for installation of a groundwater monitoring well to track concentration of various pollutants for a one-time fee of Five Hundred Dollars ($500. 00) each; and Resolution No. 93-128 authorizing settlement of the claim of L. E. Johnson, et al vs. The City of Beaumont et al in the amount of Three Hundred Seventy-Five Thousand Dollars ($375, 000. 00) . The Consent Agenda was approved on a motion made by Councilman Cokinos and seconded by Mayor Pro Tem Goodson. Question: Ayes: All Nayes: None -119- June 1, 1993 Resolution No. 93-129 directing Gulf States Utilities to file certain information with the City of Beaumont in order that the City may review existing rates to determine if they are fair and reasonable was considered: RESOLUTION NO. 93-129 A RESOLUTION OF THE CITY OF BEAUMONT, TEXAS DIRECTING GULF STATES UTILITIES COMPANY TO FILE CERTAIN INFORMATION WITH THE CITY OF BEAUMONT; SETTING A PROCEDURAL SCHEDULE FOR THE GATHERING AND REVIEW OF NECESSARY INFORMATION IN CONNECTION THEREWITH; SETTING DATES FOR THE FILING OF THE CITY'S ANALYSIS OF THE COMPANY'S FILING AND THE COMPANY'S REBUTTAL TO SUCH ANALYSIS; AND SETTING A PUBLIC HEARING FOR THE PURPOSES OF DETERMINING IF THE EXISTING RATES OF GULF STATES UTILITIES COMPANY ARE UNREASONABLE OR IN ANY WAY IN VIOLATION OF ANY PROVISION OF LAW AND THE DETERMINATION BY THE CITY OF BEAUMONT OF JUST AND REASONABLE RATES TO BE CHARGED BY GULF STATES UTILITIES COMPANY. Mr. Riley explained that the City of Beaumont is the regulatory authority under the Public Utility Regulatory Act and has original jurisdiction over rates of Gulf States Utilities to determine if they are fair, just or reasonable. Mr. Riley asked City Attorney Lane Nichols to explain procedures and regulations of this resolution. (Councilman Moore arrived. ) Mr. Nichols reaffirmed that Council is provided by the Legislature of the State of Texas with original rate-making jurisdiction to determine if utility rates are just and reasonable for the rate payers and to assure the company is earning a reasonable return on their invested capital, rate base, common stock, and common equity. He said that as a preliminary analysis of filings by GSU in other matters, Council has been provided information that indicates it is possible GSU may be overearning on Texas retail rates, and now has an obligation to investigate. Mr. Nichols explained that Council 's position is not adversarial, but that of fact finding and decision making in the original application for and setting rates. He said the resolution has established a schedule to meet that criteria by directing Gulf States to file schedules of information with the City Council by the end of July. There is provision for a period of time for the City to hire consultants to analyze and present a report to Council and GSU, a period of time for response from GSU, and eventually setting a required Public Hearing on October 14, 1993 . Mr. Nichols said, "that in summary, this resolution commences an investigation into the current GSU rates, so -120- June 1, 1993 that Council may be provided with information with which they can decide and fulfill their obligation as the body with the original rate making jurisdiction. . . " Councilman Cokinos questioned where information of Gulf States' overearning was acquired. Mr. Nichols said the information was in the report provided to Council last week by Diversified Utility Consultants, Inc. at the request of a coalition of cities in this area and basically indicates that because of two or three factors, it appears Gulf States is overearning. Councilman Cokinos then questioned periodic reviews of GSU rates by the Public Utility Commission and said they have not come fgrward with overearning information. Mr. Nichols replied that the PUC does not have original rate jurisdiction and may have different criteria than Council, and in allowing them to rule, cedes jurisdiction in this area. After further questions from Councilman Cokinos about PUC reviews of GSU rates, Mr. Nichols said his confidence level in the amount of time and effort spent by PUC staff in these reviews is not as high as it should be and, therefore, recommends the investigation. Mayor Pro Tem Goodson commented that while he has no evidence of overearning, feels it is the fiduciary duty of Council to citizens to look out for their best interest, and since there is a reporting discrepancy, Council should proceed with passage of the resolution. Resolution No. 93-129 was approved on a motion made by Mayor Pro Tem Goodson and seconded by Councilman Moore. Question: Ayes: All Nayes: None -000- Resolution No. 93-130 authorizing submission of an application for and acceptance of an Auto Theft Task Force grant from the Criminal Justice Division of the Governor's Office in the amount of $748, 143. 00 to continue operations of the Southeast Texas Auto Theft Task Force for a one-year period beginning September 1, 1993 was approved on a motion made by Councilman Smith and seconded by Councilman Moore. Question: Ayes: All Nayes: None -000- Resolution No. 93-131 authorizing an amendment to the grant for the 1993 Summer Occupant Protection Selective Traffic Enforcement Program (STEP) with the Texas Department of Transportation signed April 15, 1993 to allow enforcement sites to be established any day of the week during daylight hours to enforce seat belt laws instead of specific hours and times was approved on a motion made by Councilman Smith and seconded by Councilman Goodson. Question: Ayes: All Nayes: None -121- June 1, 1993 Resolution No. 93-132 authorizing Change Order No. 1 to the contract with Bo-Mac Contractors, Inc. in the amount of $204,222 . 00 for the 1992 Street Rehabilitation Program to include reconstruction of Tyrrell Park Road from Downs to Fannett Road deteriorated by use as a truck route to facilitate construction of the wetlands project was approved on a motion made by Councilman Moore and seconded by Councilman Smith. Question: Ayes: All Nayes: None -000- Resolution No. 93-133 accepting the bid of Dabar General Contractors in the amount of $12, 183 . 00 to erect a 56 ' x 62 ' concrete foundation with all rough-in plumbing and water piping at the Fire Training Grounds located at 600 Marina Drive was approved on a motion made by Councilman Cokinos and seconded by Mayor Pro Tem Goodson. Question: Ayes: All Nayes: None -000- Resolution No. 93-134 accepting the bid of Transit Mix Concrete Co. in the amount of $52. 00 per cubic yard for five (5) sack ready mix concrete with an addition or deduction of $4. 00 per sack, depending on ratio of the type of sack cement, for use by the Streets and Drainage Division and the Water Utilities Department was approved on a motion made by Councilman Cokinos and seconded by Councilman Davis. Question: Ayes: All Nayes: None -000- Mayor Lord announced that an Executive Session will be held following the Workshop Session in accordance with Section 2 (e) of the Texas Open Meetings Act to discuss contemplated or pending litigation: Billy Ray Jennings v. City of Beaumont, Gilbert Roy vs. City of Beaumont, Joe Turner vs. City of Beaumont, and Dave Shows vs. City of Beaumont. -000- Councilman Moore thanked Councilmen Cokinos and Alter for attending the joint meeting of the Pear Orchard and South Park Neighborhood Associations and Tom Warner and Jim Cline for a very good presentation that was well received by the residents. Mayor Lord reported a citizens complaint about greenery causing an "obstruction to the line of sight" at the Dairy Queen and Pig Stand on College Street and asked Staff to investigate if trimming needs to be considered by the City or business owner. -000- Mrs. Jo Redd, 2065 Belvedere Drive, addressed Council to complain about -122- June 1, 1993 water not draining from her back yard because of recent construction started in the Ashton Subdivision behind her home. Mrs. Redd presented a petition to Council from residents in her neighborhood. Staff explained that the City has no jurisdiction, since this involves private property, and that home builders are required to make lots drain water toward the streets. Mrs. Brenda Spivey, 6010 Chandler Drive, complimented Councilman Moore and the City of Beaumont for being on top of the repairs for Tyrrell Park Road going to Downs and spoke about pothole repairs in the Tyrrell Park entrance road. Mrs. Spivey advised Council that her vehicle suffered damage from the potholes. She said there is construction on the wetlands property and suggested that signs be posted to alert visitors to the park of the potholes. -000- There being no further business, the Regular Session of City Council was recessed to reconvene in Workshop Session. -000- I, Barbara Liming, 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 June 1, 1993 . Barbara Liming Deputy City Clerk -123- June 1, 1993