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
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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.
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The following proclamation was issued: "Spindletop Boom Days Week in
Beaumont" - September 20-26 , 1982.
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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
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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
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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
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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
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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
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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
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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.
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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.
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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
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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
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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.
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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
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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.
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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.
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Mrs. Eloise Pevoto, 495 Giles, addressed. Council to complain about the
dilapidated condition of the structure located at 4965 Highland Avenue.
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There being no further business, the meeting was recessed before continu-
ing with the City Council Workshop Session.
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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
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