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HomeMy WebLinkAboutMIN SEP 21 1982 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD SEPTEMBER 21, 1982 BE IT REMEMBERED that the City Council of the City of Beaumont , Texas, met in regular session this the 21st day of September, 1982 , with the following present : HONORABLE: William E. Neild Mayor Bill Cox Councilman , Ward I Evelyn M. Lord Councilman , Ward II Joseph D. Deshotel Councilman , Ward III Wayne Turner Councilman, Ward IV Ray Riley City Manager Hugh Earnest Asst . City Manager Kenneth Wall City Attorney Myrtle Corgey City Clerk -000- The Invocation was given by the Reverend R. C. Pemberton , pastor of the Woodland Baptist Church. The Pledge of Allegiance was led by Councilman Lord. -000- The following proclamation was issued: "Spindletop Boom Days Week in Beaumont" - September 20-26 , 1982. -000- The following Consent Agenda items were considered: Approval of the Minutes of the regular City Council session held Septem- ber 21 , 1982 ; Resolution 82-346 authorizing the release of $3,235,000 in securities pledged by Texas Commerce Bank of Beaumont as collateral for city bank deposits (-total pledged - $49, 575,000. 00) ; Resolution 82-347 authorizing payment of $11 ,091. 50 to Layne Texas Com- pany for emergency repairs to Loeb Well No. 1 ; Resolution 82-348 appointing Tanya Lee and Jim Weber and reappointing Sgt. Earl Oster to the Clean Community Commission , terms expiring Sep- tember 30, 1984; Resolution 82-349 authorizing payment of $1 ,421. 00 to Microfilming Corpor- ation of America for 1983 microfilms and index furnished to the library; and Resolution 82-350 authorizing the purchase of four (4) steel shelving sections for the library from Lamb' s in the amount of $1 ,457. 00. The Consent Agenda was approved on a motion made by Councilman Lord and seconded by Councilman Turner. Question : Ayes : All Nayes : None -000- Resolution 82-351 accepting a 1 . 1956 acre easement for the Segment 36 Interceptor project from John Dollinger Jr. , Inc. , was approved on a motion made by Councilman Deshotel and seconded by Councilman Cox. Question : Ayes : All Nayes: None -000- -167- September 21 , 1982 Resolution 82-352 accepting the work performed under a contract with J. R. Plake, Inc. , for the grading of soccer fields on Babe Zaharias Park and authorizing final payment to the contractor in the amount of $45,029. 00 was approved on a motion made by Councilman Lord and secon- ded by Councilman Deshotel. Question : Ayes : All Nayes : None -000- Resolution 82-353 authorizing execution of a contract with McCullough Associates, Inc. , in the amount of $331, 359. 33 for construction of the Stonetown , Best and Bennett Road force mains under the EPA grant-assisted sewer system improvement program (-grant number C-481254-04-Contract 9A) was approved on a motion made by Councilman Cox and seconded by Councilman Lord. Question : Ayes : All Nayes : None -000- Resolution '82=--354 authorizing purchase of four parcels of right-of-way needed for the Phelan Boulevard Extension TIP project (Parcels #18 from Sam C. Parigi, Jr. , in the amount of $16, 172. 00; #26 from Joe Malley, Michael Malley and Anthony Malley, Jr. in the amount of $8 ,520. 00; #27 from Joe Malley in the amount of $2 ,790. 00 and #31 from Joe Malley, Michael Malley and Anthony Malley, Jr. , in the amount of $10,634. 00) and Resolution 82-355 authorizing eminent domain proceedings to acquire Parcel #30 needed for right-of-way for the Phelan Boulevard Extension Cappraised in the amount of $4, 920. 00) were approved on a motion made by Councilman Lord and seconded by Councilman Cox. Question : Ayes : Mayor Neild Abstained: Councilman Councilman Cox Deshotel Councilman Lord Councilman Turner -000- Resolution 82-356 authorizing execution of a contract with ARA Services, Inc. , for fleet management and maintenance for a three-year term with an- nual renegotiation of compensation and other financial terms, first year target price at $1 ,055, 100. 00, was approved on a motion made by Council- man Turner and seconded by Councilman Lord. Question : Ayes : All Nayes : None -000- A resolution authorizing purchase of police cruisers and detective cars for t,be Police Department was deferred so that additional information concerning the bids can be studied. -000- Ordinance No. 82-111 amending Chapter 13 of the Code of Ordinances relat- ing to high grass and weeds was considered : ORDINANCE NO. 82-111 ENTITLED AN ORDINANCE AMENDING CHAPTER 13 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT REGARDING THE GROWTH OF WEEDS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. -168- September 21, 1982 City Manager Riley told Council that the ordinance provides for an increase in the fine -- the first fine will be in the amount of $50. 00 for the first offense conviction and $100. 00 for subsequent convictions. He said notices will be sent to all those persons failing to comply with the provisions of the Code in bringing their lots into compliance by cutting or removing the overgrowth; then , upon the second notice, they will also receive a citation for being in violation of the Code and will be subject to charges being filed in Municipal Court. The City will move to have the weeds/overgrowth cut by either use of a private contractor or City forces and charges as- sessed against the property in the form of a lien. The minimum charge for any such -cutting will be $65. 00 which includes both the cost of the pro- cessing administrative costs , notices being sent by certified mail -- as well as the cost of the contract cutters the City uses to mow these over- grown lots. The ordinance was approved on a motion made by Councilman Turner and se- conded by Councilman Lord. Question : Ayes : All Nayes: None -000- PUBLIC HEARING GULF STATES UTILITIES COMPANY RATE REQUEST CITY MANAGER RILEY: The next item is a public hearing concerning the request of Gulf States Utilities Company for a rate increase. The City Attorney might like to make an introduction. CITY ATTORNEY WALL: We have present today a representative from Touche Ross and Company. That company was employed by the City to review the rate request of Gulf States and did extensively review that . He has a brief presentation to make to Council and, after he concludes, then any members of the public who are present that would like to speak on the matter be recognized. MAYOR NEILD: I call the public hearing at this time and ask the representative of Touche Ross to come forward and give us his name and affiliation and those sort of things and then I ' ll ask for any comments from citizens. MR. GREG TARASAR, partner of Touche Ross & Company: Mr. Tarasar summarized the various revenue requirements of the parties in the case, the percent increase that these would translate into by cus- tomer class, return differentials and then a brief summary of invested capital , operating income and return. The Company in the revised filing requested $138 ,922 ,000. 00 in additional revenue requirements. Touche Ross ' recommendation was $59,959,000. 00. The Public Utilities Commission staff 's was $60, 103 , 000. 00, and a stipu- lated settlement between all the parties -- Commission Staff , Company, and the other interveners -- of $57,500,000. 00 was reached. The Company' s increase translates into 27. 8 percent increase in total revenues (all revenues including fuel ) . The City' s and PUC Staff 's was 12 percent increase and the settlement works out to 11 . 5 percent . In total revenues, the Residential increase would be 17. 3 percent ; Small General Services - 5. 8 percent ; General Services overall - 10.4 percent ; Large General Services - 6. 7 percent ; Large Industrial Services - 7. 6 per- cent ; and Street and Outdoor Lighting - 8. 6 percent . He said in setting rates, the Commission is attempting to move towards an equal rate of re- turn for all customer classes. The Residential Return Differential was -169- September 21, 1982 Mr. TArasar' s presentation continued: held at . 89 percent - the 'rate it currently is today. In invested capital , GSU indicated an investment of $1,256,000,000. 00. Touche Ross's recommendation was $1,030,000,000. 00. The Company' s operat- ing income was reported to be $100,000,000. 00; Touche Ross' , after adjust- ments, was approximately $106,000,000. 00. He further said one major disa- greement was in the Recommended Rate of Return. The Company, on Common Equity, requested 18 percent. Touche Ross recommended 16. 8 percent and the settlement agreement was 17.2 percent . Mr. J. C. Leggett , 1849 Washington Boulevard, addressed Council to, say that the residential rate increase was too high. Mr. Arden Loughmiller, Division Vice-President of Gulf States Utilities Company, addressed Council to say that his company is concerned with high costs and is doing everything possible to control them. There being no others to address the public hearing, it was closed. -000- Ordinance No. 82-112 establishing rates for electricity was considered: ORDINANCE NO. 82-112 ENTITLED AN ORDINANCE ESTABLISHING THE RATES CHARGED BY GULF STATES UTILITIES COMPANY FOR RETAIL ELECTRIC SERVICE PROVIDED WITHIN THE CITY OF BEAUMONT; AUTHORIZING COMPROMISE OF DOCKET NO. 4510 NOW PENDING BEFORE THE PUBLIC UTILITY COMMISSION OF TEXAS; ASSESSING ALL EX- PENSES INCURRED BY THE CITY OF BEAUMONT AS A REGULATORY AUTHORITY AGAINST GULF STATES UTIL- ITIES COMPANY; AND PROVIDING FOR SEVERABILITY. The ordinance was approved on a motion made by Councilman Lord and se- conded by Councilman Turner. Question : Ayes : All Nayes: None -000- Mrs. Marie Carpenter, Councilman Cox' s mother, and Mrs. Jane Lawless, re- presentative of the League of Women Voters, were welcomed to today's meeting. -000, Mayor Neild questioned the flexibility of use of funds accrusing as a result of savings from sanitary sewer projects. The City Manager re- sponded that he thought any savings which accrue from projects as a result .of their being less than estimates may be applied against subse- quent projects within the sanitary sewer system. -000- Mrs. Eloise Pevoto, 495 Giles, addressed. Council to complain about the dilapidated condition of the structure located at 4965 Highland Avenue. -000- There being no further business, the meeting was recessed before continu- ing with the City Council Workshop Session. -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 ses- sion held September 21 , 1982. Myrtle Corgey, City Clerk -170- September 21 , 1982