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HomeMy WebLinkAboutMIN JUL 29 1975 REGULAR SESSION CITY COUNCIL ® CITY OF BEAUMONT HELD JULY 29, 1975 BE IT REMEMBERED that the City Council of the City of Beau-mont- , Texao, i -:,,Z in regular session this the 29th day of July, 1975 , with the following pre- sent: HONORABLE: Ken Ritter Mayor Don S. Cash Councilman, Ward T Vi McGinnis Councilwoman. Wrard 11 Calvin Williams Councilman, Ward III Leroy Evans Councilman, Ward IV Appointed Officials: Howard McDaniel Acting City Manager Kenneth Wall City Attorney Myrtle Corgey City Clerk -000- The Invocation was given by Reverend Don Webb, Roberts Avenue Methodist Church. The Pledge of Allegiance was led by Councilwoman Vi McGinnis, Mayor Ritter issued one Proclamation: The Month of August, "Family Unity Month. " Accepting the Proclamation for the Church of Jesus Christ, Latter Day Saints: Dr© Donald Hilton, Messrs, David D. Geddes and Garland Dias. -000- The Minutes of the regular City Council session held July 22 , 1975, appro ved on a motion made by Councilwoman McGinnis; seconded by Councilman Cash , Quest-ion. Ayes -. All Nayes: one -000- Res 75255, authorizing the award of bids for 25 fire hydrants ±,or the .Department to American Darling Valve, in the amount of $6 , 373 . 50 , approved', on a motion made by Councilwoman McGinnis; seconded by Councilman Evans. Question: Ayes® All Nayes : None -000- Res 75256, authorizing the award of bids for three Chlorinators for the Water Production Department to Fischer & Porter Company, in the amount of $7, 980000, approved on a motion made by Councilman Cash; seconded by Councilman Williams. Question: Ayes : All Nayes: None -000- Res 75257 , authorizing the award of bids for a microfilm/printer, for the Library to the 3M Microfilm Division, in the amount of $3,161_ 00, approved by motion made by Councilman Evans; seconded by Councilwoman McGinnis. Question: Ayes : All Nayes : None --128- JULY' 29, 1975 -000- Res 75-258, authorizing the award of bids for a Service Monitor for the Building Maintenance Department to Motorola, Inc. , in the amount of $4,459. 00, approved on a motion made by Councilman Williams; seconded by Councilman Cash. Question: Ayes : All Nayes: None -000- Res 75-259, authorizing the granting of a license to the Texas Pipe Line Company, to lay one 6" and one 8" pipeline crossing Frint Drive, in the Tyrrell Park area, approved on a motion made by Councilwoman McGinnis and seconded by Councilman Evans. Question: Ayes: All Nayes: None -000- Res 75-260, authorizing acceptance of water, sanitary sewer, storm sewers, and pavement in the Dowlen West, Unit IX, which includes Monterrey Drive and Brandywine Drive, approved on motion made by Councilman Cash; seconded by Councilman Evans. Question: Ayes: All Nayes : None -000- Res 75-261, authorizing the City Manager to make payment to Gruen Associates, Inc. , in the amount of $45. 12, for travel expenses and program assistance in preparation for improvements to be constructed under the CAP (includes blue- prints, phostats, etc. ) , approved on a motion made by Councilman Evans and seconded by Councilman Williams. Question: Ayes: All Nayes: None -000- Res 75-262, designating City Manager as the authorized official for the City of Beaumont whose signature is to appear on all documents relating to the Environmental Protection Agency grant (Project WPC-TEX-975, West End Interceptor Sewer Project) , approved on a motion made by Councilman Cash; seconded by Councilwoman McGinnis. Question: Ayes : All Nayes : None -000- Res 75-263, authorizing the Acting City Manager to apply to the Department of Highways and Public Transportation for assistance in funding for the transit system, approved on a motion made by Councilwoman McGinnis, seconded by Councilman Cash. Question: Ayes: All Nayes: None -000- Res 75-264, authorizing the Acting City Manager to enter into an agreement with Louis T. Klauder & Associates to provide inspection services on the 25 buses at A. M. Generals Mishawaka, Indiana plant, at a total estimated cost not to exceed $19, 749. 94 (Federal share being 80% and local share 20%),, approved on a motion made by Councilman Evans; seconded by Council- woman McGinnis. Question: Ayes: All Nayes: None -000- Res 75-265, authorizing a lease agreement with Gold Coast Fine Arts Assoc. , Inc. , for the use of City property in the vicinity of St. Helena Street, for a term of five (5) years, with a 90 days cancellation clause, at an annual rental of $1. 00, approved on a motion made by Councilman Cash and seconded by Councilwoman McGinnis. Question: Ayes: All Nayes: None -129- JULY 29 , 1975 DILAPIDATED STRUCTURE HEARING The Dilapidated Structure Hearing was held with the following present : HONORABLE: Ken Ritter Mayor Don S. Cash Councilman, Ward I Vi McGinnis Councilwoman, Ward 11 Calvin Williams Councilman, Ward 'III Leroy Evans Councilman Ward IV Kenneth Wall City Attorney Leonard Hardy Dir. Environ. Control Jim Thompson Admin. Asst. to Manager -000- 600 Lethia Street - Mr. Harris appeared before Council on behalf of his wife, Theresa Fletcher Harris, owner of the property. Mr. Harris asked for an extension through the Month of August in which to tear the structure down. Mr. Hardy recommended that the structure be condemned, but stated that he would be in favor of granting the requested extension. Councilwoman McGinnis moved that this structure be condemned and a 30-day extension be allowed; motion seconded by Councilman Evans. Question: Ayes: All Nayes : None -000- Mr. Hardy submitted a sworn affidavit to members of the Council stating that he had personally inspected each of the structures listed and that he found all of the structures to be "dangerous structures" as defined by Section 12A-19 of the Code of Ordinances. Slides were shown of each ioca- tion. The original affidavit is on record in the City Clerk' s Office, 10 1406 Ave A, Lot 1, Block 15, Blanchette Second Addition. 2. 1138 & 1142 Ashley Street, Lots 11 & 12 and Parts of Lots 9 & 10. 3. Block 16, Chaison Addition. 4 . 1309 Beech Street, Plat A-5 , Tract 8 , J. Drake Survey. 5. 6775 Bigner Road, Tract 61-A, Block C, Beaumont Imp. Co. 6. 757 College Street, Lot 494 , Block 64 , Beaumont Addition. 7 . 735 Cuniff Street, Plat F, Tract 52 , D. Brown Survey. 8. 3170 Elinor, Lot 15, Block 33, West Oakland Addition Ext, 9. 1008 Evalon, Lots 13, 14 & 15 , Block 18 , Chalson Addition. 10. 1206 Forrest Street, Lot 20, Block 18 , Chaison Addition. 11. 600 Lethia Street, Lots 5 & 6, Block 1, McQueen Addition. 12. 1310 & 1320 Madison (Duplex) , N. 1/2 of Lot 1, Block 13 , Oakwood Addition. 13. 930 Porter Street, Lots 31 & 32, Block 3, Herring Addition. 14 . 1808 Railroad Avenue, rear, Lot 7 , Block 15, Ogden Addition. 15. 1425 Royal, Lot 1, Block 15, Blanchette Second Addition. City Council unanimously accepted the sworn affidavit presented by Mr. Hardy and ordered the above structures condemned and demolished. Question: Ayes: All Nayes: None -000- There being no further business, the meeting was adjourned. -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 July 29, 1975. Myrtle Corgey City Clerk -131- JULY 29 , 1975 SPECIAL SESSION CITY COUNCIL - CITY OF BEAUMONT CITY COUNCIL CHAMBERS HELD 7 :00 P.M. , JULY 29, 1975 BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in Special Session, this the 29th day of July, 1975, at 7 :00 p.m. , to hold a Public Hearing on a rate increase request filed by Entex, Incorporated on June 24, 1975. -000- HONORABLE Ken Ritter ! Mayor Don S. Cash Councilman, Ward I Vi McGinnis Counbilwoman, Ward II Calvin Williams Councilman, Ward III Leroy Evans Councilman, Ward IV Howard McDaniel Acting City Manager Kenneth Wall City Attorney Myrtle Corgey City Clerk Jim Thompson Admin. Asst® to Mgr, -000- Mayor Ritter recognized Messrs. L. A. Duffee and Allan Caldwell, represent- ing Entex, Incorporated. Mr. Duffee, District Manager, gave the following presentation: "On June 24, 1975, Entex filed with the City Council of the City of Beaumont a request for a rate increase. This increase was a very nominal one; amount- ing to about 2� per day for the average bill and average customer. The reason that we need this increase is to help compensate for the rapidly ris- ing costs that we, like every other business, has experienced in the past year. During the year 1974, the general inflation rate was about 11%. We are not asking for anything like that much. This increase amounts to about 3. 6% on the average bill. The request, as submitted, will give us a little over our fair value of 7. 57%, which is a trifle over 7-1/20 . We feel that we can justify a much higher rate than that, but we are willing to settle for this 7. 57%. We ask the Council to study our proposal and we hope that they will give us a favorable answer. " Councilman Cash asked how Entex could justify asking for a rate increase and at the same time have an advertising program promoting the use of gas when there is a shortage within our Nation. Mr. Duffee stated that their advertising program is a rather modest one. He stated that for a town the size of Beaumont, advertising expenses were a little over one dollar per year per customer. Mr. Duffee stated that most of their advertising has been on the theme of conserving the use of gas -- energy conservation. Councilman Williams asked if they had the authority to pass on the cost of gas increase that you pay rental onto the customer and, further, is the increase asked for based primarily on the cost of operating, -132- JULY 29, 1975 Mr. Duffee explained that gas costs passed onto them is passed onto the customer -- by a flow-through. which occurs every six months. Mr. Duffee pointed out that each time they have one of these flow-throughs, Entex loses money. Further, Mr. Duffee pointed out on their gross revenues each year there is a street rental tax and a State gross receipt tax which will amount to about 4% which they do not get back. Mr. Duffee stated that when they have higher bills, a higher street rental tax and higher gross re- ceipt tax has to be paid. Councilman Cash asked if Mr. Duffee could explain to the Council why the figures they began with this year did not relate to the figures they ended with the prior year. Mr. Duffee referred to Schedule A of their report, stating these figures are actuals for 1974 and in 1974 they had some increases in gas products which were not in effect the entire year. These figures were annualized in order to form a true starting basis -- in order to get a true picture of the present situation. Further, Mr. Duffee stated, there had been a general wage increase about the middle of the year. Mr. Duffee stated they could furnish the Council with back-up information, which would be more detailed and this information would be furnished to members of the Council, to a consultant, or anyone who would like to see it. Councilman Evans stated that there seems to be a lot of misunderstanding -- probably about the flow-through charge and a lot of people seem to under- stand this is an additional raise to what your company has already gotten. Councilman Evans asked Mr. Duffee "what he would predict that this thing will do now . . .probably double in a year. . .the flow-through charge?" Mr. Duffee stated that it probably would. Councilman Evans asked for predictions for the coming year. Mr. Duffee stated they have a flow-through every six months -- one in March and one coming in September. The one in September, from all they know now, will not be as large as the one in March, but, in his opinion, gas costs will continue to increase. -000- Mayor Ritter invited -citizens to speak and recognized Mr. John W. Horton, 3385 Worcester, who voiced opposition to the proposed rate increase. Mr. Horton referred to the sharp increase in his gas bills and asked why the bills have more than doubled. Mr. Duffee explained that he would like to get all the information together relative to Mr. Horton' s account and go over the figures with him and Mr. Duffee assured Mr. Horton that he would be willing to meet with him anytime at his convenience. Mr. J. D. Graves, 2890 West Lucas, complained about the heavy increase in his gas bills. Mr. Graves criticized Entex for not putting in new equip- ment such as gas lines, meters, etc. Mr. Duffee commented that he had met with Mr. Graves a few days ago and had gone over his account with him for the past two years and there was only one instance where possibly the meter was under-read, but this has a way of catching up with itself. Mr. Duffee stated that Entex spends quite a bit of money in Beaumont -- possibly next year' s budget will reflect something like a million dollars; that lines are being installed all over Beaumont. Mr. Duffee pointed out that the lines in Beaumont are in good shape. Mr. Caldwell, Division Manager for Entex, spoke briefly on excelerated gas prices at the wellhead which, according to Mr. Caldwell, Entex does not get. The transmission or distribution company does not get the increase. It is the producers that get the increase. Mr. Caldwell predicted that gas will go probably as high as $2. 50 at the wellhead. The increase asked for here is to help take care of the increase in salaries, cost of pipe and steel. -133- JULY 29, 1975 Mayor recognized Mr. Jack M. Carson, 4710 Fieldwood Lane, an attorney in Beaumont, who read the following item from a newspaper: "Utilities. Administrative Remedies. Info. P Telephone Co requested rate increase. D City asked that it be furnished a certified financial statement & operating statement. These documents were never furnished. City took no action other than to employ a consultant. P filed suit® TC found info requested was reasonable & necessary for City to determine rate increase. TC sustained plea in abatement & dismissed® Held: Affd. Telephone Co has not exhausted administrative -remedies. City' s request for info was not unreasonable® Frio Canyon Telephone Co, Inc v® City of Leakey, Texas, et al, 6/25 SA� " Mr. Carson sharply criticized elected officials from the local level to the National level for catering to "vested interests, " remarking that elected officials are not protecting the people. Mr® Carson strongly opposed the proposed rate increase and asked that Entex be required to file a certified financial and operating statement. Mr. Carson further stated that Entex may need this increase, but they need to "prove up their point. " The entire Council responded to Mr® Carson stating they were offended by some of his remarks, in particular to "catering to vested interests. " Councilman Williams stated that it was dangerous to make a blanket state- ment against all elected officials. Members of Council assured Mr. Carson that before Entex rate increase request was acted upon, a consultant would be hired to determine if the increase is warranted. -000- Mayor Ritter thanked those present for attending and adjourned the meeting. -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 Special Session held July 29, 1975, relative to a Public Hearing on a rate increase request filed by Entex, Incorporated. Myrtle Corgey City Clerk -134- JULY 29, 1975