HomeMy WebLinkAboutMIN SEPT 19 2006 M I N U T E S - CITY OF BEAUMONT
Andrew P. Cokinos,At-Large GUY N. GOODSON, MAYOR Becky Ames,At-Large
Lulu L. Smith,Ward I CITY COUNCIL MEETING Nancy Beaulieu, Mayor Pro Tem, Ward II
Audwin Samuel,Ward III September 19, 2006 Bobbie J. Patterson,Ward IV
Tyrone E. Cooper, City Attorney Kyle Hayes, City Manager Rose Ann Jones, City Clerk
The City Council of the City of Beaumont, Texas, met in a regular session on September 19,
2006, at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 1:30 p.m. to
consider the following:
OPENING
Invocation Pledge of Allegiance Roll Call
Presentations and Recognition
` Public Comment: Persons may speak on scheduled agenda items 2, 4-7/Consent Agenda
Consent Agenda
Mayor Goodson called the council meeting to order at 1:30 p.m.
Pastor Howard Cameron of Trinity Church gave the invocation. Corporal Ricardo Escuadra led
the Pledge of Allegiance. Roll call was made by Rose Ann Jones, City Clerk.
Present at the meeting were Mayor Goodson, Mayor Pro Tern Beaulieu, Councilmembers Smith,
Ames, Samuel and Patterson. Absent: Councilmember Cokinos. Also present were Kyle Hayes,
City Manager; Tyrone Cooper, City Attorney; Rose Ann Jones, City Clerk.
Proclamations, Presentations, Recognitions
"Constitution Week in Beaumont" - September 17 - 23, 2006 - Proclamation read by
Mayor Pro Tern Beaulieu; accepted by Betty Owens
"PrayBeaumont Day" - Sunday, September 24, 2006 - Proclamation read by
Councilmember Samuel; accepted by Pastor Howard Cameron of Trinity Church, Pastor
Reggie Lloyd of Praise Christian Center, Pastor Donnie Flippo of Gospel Center Church,
Pastor Castille Colbert of the Gospel of Jesus Christ Church and Pastor John Burke of
Father's House
"Corporal Ricardo Escuadra Day" -Tuesday, September 19, 2006 - Proclamation read
by Mayor Goodson; accepted by Corporal Ricardo Escuadra with the United States Marine
Corps
Public Comment: Persons may speak on scheduled agenda items 2, 4-7/Consent Agenda.
None
Minutes-September 19,2006
CONSENT AGENDA
Approval of minutes - Minutes of September 12, 2006
Confirmation of committee appointments - None
A) Authorize the City Manager to accept a Tobacco Compliance Grant from the Texas
Comptroller's Office - Resolution 06-273
B) Authorize the City Manager and Chief of Police to execute the Joint Terrorism Task Force
Memorandum of Agreement - Resolution 06-274
C) Authorize the acceptance of a ten (10) foot wide water line easement for fire hydrants
across Kelley Family Investments property (Cypress Bend Apartments) near the
intersection of Gladys and Major - Resolution 06-275
D) Authorize the acceptance of two (2) - ten (10) foot wide water line easements for fire
hydrants across Eagles Landing Apartments - Resolution 06-276
E) Authorize the granting of a License to Encroach to LaTEX Investors, L.P. for a brick
monument sign in the median of Pointe' Parkway - Resolution 06-277
Councilmember Ames made a motion to approve the Consent Agenda. Councilmember
Patterson seconded the motion.
AYES: MAYOR GOODSON,MAYOR PRO TEM BEAULIEU,COUNCILMEMBERS SMITH,
AMES, SAMUEL AND PATTERSON
NAYS: NONE
MOTION PASSED
GENERAL BUSINESS
1. Consider adopting the FY 2007 Budget - Ordinance 06-055
Article VI, Section 8 of the City Charter states that "the budget shall be adopted by the
favorable votes of at least a majority of all members of the Council." Section 9 states that
"the budget shall be finally adopted not later than the twenty-seventh (27th) day of the last
month of the fiscal year."
Proposed appropriation for all funds, net of a contingency, totals $195,044,300.
Additionally, a contingency appropriation of$1,500,000 is made for the General Fund.
Councilmember Smith moved to ADOPT ORDINANCE 06-055 ENTITLED AN ORDINANCE
REFERRED TO AS THE "ANNUAL APPROPRIATION ORDINANCE" ADOPTING A BUDGET FOR THE
FISCAL PERIOD BEGINNING OCTOBER 1,2006 AND ENDING SEPTEMBER 30,2007 IN ACCORDANCE
WITH THE CHARTER OF THE CITY OF BEAUMONT; APPORTIONING THE FUNDS OF THE CITY OF
Page 2 of 9 Minutes-September 19,2006
BEAUMONT;REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH AND
PROVIDING FOR SEVERABILITY. Councilmember Beaulieu seconded the motion.
AYES: MAYOR GOODSON, MAYOR PRO TEM BEAULIEU,COUNCILMEMBERS SMITH,
AMES, SAMUEL AND PATTERSON
NAYS: NONE
MOTION PASSED
2. Consider accepting the tax roll and establishing the property tax rate for the tax year 2006
(FY 2007) - Ordinance 06-056
Administration recommended that Council accept the Jefferson County Appraisal District's
Certified Tax Roll and adopt a property tax rate of$0.659 for the tax year 2006 (FY 2007).
The tax rate would be apportioned $0.394553 to the General Fund and $0.264447 to the
Debt Service Fund. This distribution represents a shift of 1.3 cents of the dedicated tax rate
from the General Fund to the Debt Service Fund.
Chapter 26 of the Property Tax Code requires taxing units to comply with truth-in-taxation
laws in adopting their tax rates. State law requires all taxing units to adopt their tax rates
before the later of September 30 or the 60th day after the taxing unit receives the appraisal
roll. Additionally, state law requires the adoption of the Budget before the tax rate.
Councilmember Beaulieu made a motion to ADOPT ORDINANCE 06-056 ENTITLED AN
ORDINANCE ACCEPTING THE TAX ROLL FOR THE CITY OF BEAUMONT; ESTABLISHING A TAX RATE;
PROVIDING FOR LEVYING,ASSESSING AND COLLECTING OF AD VALOREM TAXES FOR THE TAXYEAR
2006; PROVIDING FOR SEVERABILITY AND PROVIDING FOR REPEAL. Councilmember Ames
seconded the motion.
AYES: MAYOR GOODSON,MAYOR PRO TEM BEAULIEU,COUNCILMEMBERS SMITH,
AMES, SAMUEL AND PATTERSON
NAYS: NONE
MOTION PASSED
3. Consider adopting the 2007 Capital Program - Resolution 06-278
Section 20 states that "the Council shall, by resolution, adopt the Capital Program with or
without amendment after the public hearing and on or before the twenty-seventh (27th)day
of the last month of the current fiscal year."
In the 2007 Capital Program, projects in the design or construction phase total
$264,270,000 and include $74,700,000 in Water and Sewer projects, $34,060,000 in
General Improvement projects and $155,510,000 in Public Works.
The Capital Program was originally submitted to Council on May 12, 2006. It was revised
and submitted to Council on August 15, 2006, and reviewed during a work session on
August 29, 2006. A public hearing was held on September 12, 2006.
Page 3 of 9 Minutes-September 19,2006
Councilmember Smith made a motion to APPROVE RESOLUTION 06-278 THAT THE FY2007
CAPITAL PROGRAM IS HEREBY ADOPTED. A PUBLIC HEARING WAS HELD AT 1:30 PM ON
SEPTEMBER 12, 2006 IN THE CITY COUNCIL CHAMBERS, CITY HALL, BEAUMONT, TEXAS.
Councilmember Samuel seconded the motion.
AYES: MAYOR GOODSON, MAYOR PRO TEM BEAULIEU,COUNCILMEMBERS SMITH,
AMES, SAMUEL AND PATTERSON
NAYS: NONE
MOTION PASSED
4. Consider approving a one year agreement with Blue Cross Blue Shield of Texas(BCBSTX)
for employee medical and dental insurance - Resolution 06-279
Administration recommended that council award to Blue Cross Blue Shield of Texas
(BCBSTX) a one year contract effective January 1, 2007 for third party administration of
the City's fully insured Health Maintenance Organization (HMO Blue Texas), self funded
Preferred Provider Organization (PPO) medical plan and a self funded dental plan.
Full time city employees are offered medical and dental benefits. The medical and dental
benefits consist of a fully insured HMO plan, a self funded PPO plan and a self funded
dental plan. There are 530 participants enrolled in the HMO plan, consisting of 456 active
employees, 73 retirees, and 1 COBRA participant. There are 835 participants enrolled in
the PPO plan, consisting of 729 active employees and 106 retirees. In the dental plan,
there are 920 active employees.
In June 2006, City staff began analyzing the City's health care costs. Staff also began
working with the City's health benefit consultant, McGriff, Siebels and Williams of Texas,
Inc., to determine if the City should request bid proposals for the City's HMO, PPO, and
dental plans or remain with the current administrator, BCBSTX for 2007. The current
agreement with BCBSTX started January 1, 2006 and can be renewed for up to 5 years.
After researching the various plans offered in the area, McGriff concluded that BCBSTX
offered the most cost effective plans. Because of BCBSTX's extensive network, deep
provider discounts, ability to retain continuity of insurance and the lack of other extensive
provider networks, staff recommends renewal with BCBSTX.
PPO fixed costs increased 3% due to a slight increase in the reinsurance/stop loss rates.
Renewal rates for the self funded dental plan did not increase. Final negotiations resulted
in the HMO plan renewal being held to a 12.1% increase. This increase was a function of
increasing utilization, rising trend factors and increasing provider reimbursements.
McGriff recommends that the City remain with BCBSTX because it offers cost effective
plans with an extensive network and deep provider discounts. The projected medical rate
increase is within industry trends.
Appropriation of funds is available in the Employee Benefits Fund.
Page 4 of 9 Minutes-September 19,2006
Councilmember Ames made a motion to APPROVE RESOLUTION 06-279 THAT THE CITY
MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXERCISE A CONTRACT RENEWAL WITH BLUE
CROSS BLUE SHIELD OF TEXAS(BCBSTX)FORA ONE-YEAR CONTRACT WITH ADDITIONAL OPTIONAL
ANNUAL RENEWALS NOT TO EXCEED A TOTAL OF FOUR(4)YEARS COMMENCING JANUARY 1,2007.
Councilmember Beaulieu seconded the motion.
AYES: MAYOR GOODSON, MAYOR PRO TEM BEAULIEU, COUNCILMEMBERS SMITH,
AMES, SAMUEL AND PATTERSON
NAYS: NONE
MOTION PASSED
5. Consider approving an annual contract for container and solid waste collections at various
city-owned facilities - Resolution 06-280
Administration recommended awarding an annual contract to Waste Management of
Beaumont, Texas for container and solid waste collection services.
Refuse container and collection services are required at approximately thirty-one(31)sites
throughout the City. The size of refuse containers required at each location range in size
from two (2) to ten (10) cubic yards and the collection frequency rates typically range from
one (1) to four (4) times per week.
The monthly cost of last year's contract with Waste Management was approximately
$3,535.38. The significant increase is attributed to an increase in fuel costs.
Funds are available in various departmental operating budgets in the General Fund and
in the Fleet Fund, Water Utilities Fund, and the Henry Homberg Golf Course Fund. The
estimated annual expenditure is $71,286.84.
Mayor Pro Tern Beaulieu made a motion to APPROVE RESOLUTION 06-280 THAT THE BID
SUBMITTED BY WASTE MANAGEMENT, BEAUMONT, TEXAS, FOR AN ANNUAL CONTRACT FOR
CONTAINER AND SOLID WASTE COLLECTION FOR AN ESTIMATED ANNUAL COST OF$71,286.84 BE
ACCEPTED BY THE CITY OF BEAUMONT. Councilmember Smith seconded the motion.
AYES: MAYOR GOODSON, MAYOR PRO TEM BEAULIEU, COUNCILMEMBERS SMITH,
AMES, SAMUEL AND PATTERSON
NAYS: NONE
MOTION PASSED
6. Consider approving new rates for the rental of city recreation buildings-Ordinance 06-057
Administration recommended approval of new rates for the rental of city recreation
buildings effective October 1, 2006. City recreation buildings include the Alice Keith
Community Center, J.P. Richardson Community Center, Rogers Park Community Center,
Central Park Community Center, Tyrrell Park Community Center, Sterling Pruitt Activity
Page 5 of 9 Minutes-September 19,2006
Center and the Best Years Center. Sprott Park would also be included. The rates would
be as follows:
$25 per hour with a three hour minimum. Thirty minutes before and after any event
would be allowed for set up and take down. Anything over three hours for an event
would cost $25 an hour. A charge of $25 would be incurred for set up and take
down of tables and chairs.
The buildings have been operated by the Recreation Division for a number of years.
Current cost are$50 for three hours and $10 for anything over three hours. $25 is currently
charged for set up and take down of tables and chairs.
The Convention Facilities Division will be responsible for overseeing the rental of facilities
beginning October 1, 2006. Currently, the Parks Division rents the facilities. All facilities,
including the Civic Center, Jefferson Theatre and Julies Rogers Theatre will be the
responsibility of the Convention Facilities Division.
The Convention Facilities Division plans to extensively clean the recreation centers and
insure that an attendant is on duty when an event occurs. Staff has visited the centers and
listed what needs to be done to make them more attractive and usable.
Additional rental would be forthcoming since the basic rental is being increased by $25.
Councilmember Smith made a motion to ADOPT ORDINANCE 06-057 ENTITLED AN ORDINANCE
AMENDING CHAPTER 20 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT TO ADD A NEW
SECTION 20-13 ESTABLISHING NEW RENTAL RATES FOR THE RENTAL OF CITY RECREATION
BUILDINGS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL; PROVIDING A PENALTY AND
PROVIDING AN EFFECTIVE DATE. Councilmember Ames seconded the motion.
AYES: MAYOR GOODSON, MAYOR PRO TEM BEAULIEU, COUNCILMEMBERS SMITH,
AMES, SAMUEL AND PATTERSON
NAYS: NONE
MOTION PASSED
COUNCILMEMBER COMMENTS
COUNCILMEMBER SMITH - NONE
MAYOR PRO TEM BEAULIEU - NONE
COUNCILMEMBER AMES - NONE
COUNCILMEMBER SAMUEL - PLEASURE TO SEE STAFF AND CITY MANAGER WORK SO
WELL TOGETHER IN RECENT YEARS; COMMENDED ALL THE
WORK DONE TO GET OUR CITY IN SUCH GOOD SHAPE BOTH
FISCALLY AND PHYSICALLY; RECOGNIZED MICHAEL
STERLING AND SEAN SAMUEL, BOTH LAW STUDENTS,
GRADUATES OF OZEN HS, AND FORMER MEMBERS OF THE
MAYORS YOUTH COMMISSION
Page 6 of 9 Minutes-September 19,2006
COUNCILMEMBER PATTERSON - NONE
CITY ATTORNEY COOPER - NONE
CITY MANAGER HAYES - NONE
MAYOR GOODSON- REMINISCED THAT MICHAEL STERLING SAID THAT HE WOULD
SOMEDAY BE MAYOR OF BEAUMONT; THANKED BARBARA
OTTO FOR THE OPPORTUNITY TO ATTEND ST. MICHAEL'S
GREEK ORTHODOX CHURCH LUNCHEON; HELPED WITH THE
CVB ADOPT-A-HIGHWAY PROGRAM ON SATURDAY NEAR
TxDOT; PERSONAL THANKS TO THOSE WHO WERE HERE
DURING THOSE THREE WEEKS LAST YEAR;SPECIAL THANKS
TO ALL THE MEN AND WOMEN OF BEAUMONT AND THE FIRE,
POLICE, EMS; FOR THEIR PROFESSIONALISM, PATIENCE,
CONFIDENCE AS WELL AS THE WONDERFUL OPPORTUNITIES
WHICH LAY AHEAD FOR US
Open session of meeting recessed at 2:13 p.m. to enter into Executive Session.
EXECUTIVE SESSION
Consider matters related to employment, evaluation and duties of a public officer
or employee in accordance with Section 551.074 of the Government Code:
Chief Magistrate James McNicholas
City Magistrate Theodore Johns
City Magistrate Craig Lively
(This item has been cancelled due to a conflict of schedules and will be discussed at a
later meeting.)
Consider matters related to contemplated or pending litigation in
accordance with Section 551.071 of the Government Code:
Entergy Gulf States, Inc.
(Mayor Goodson announced that he would not participate in the deliberations involving the
matters of Entergy Gulf States as his law firm does work for this company.)
Following Closed Executive Session, Open session of meeting resumed at 2:40 p.m.
7. Consider amending Ordinance No. 04-068 granting an electric franchise to Entergy Gulf
States, Inc. and authorizing the City Manager to enter into an agreement reserving to the
end of the term of the franchise agreement the parties' rights to resolve an issue regarding
the timing of franchise payments - Ordinance 06-058
Administration recommended approval of an ordinance amendment to Ordinance No. 04-
068 adopted on September 28, 2004 granting to Entergy Gulf States, Inc. an electric
franchise which provides compensation for the use of the City's streets, alleys and rights-
of-way by Entergy Gulf States, Inc. and authorizing the City Manager to execute an
agreement with Entergy Gulf States, Inc. reserving an issue as to the timing of the
franchise fee payments to be resolved at the end of the franchise agreement in 2017.
Page 7 of 9 Minutes-September 19,2006
The City of Beaumont and Entergy Gulf States, Inc. entered into an electric franchise
agreementwhich provided for the accelerated expiration of the existing franchise ordinance
and granted a new franchise which included a different method of compensation to the
City. This new agreement became effective February 1, 2006. The old agreement
provided for payment of base franchise fees on a percentage of gross receipts basis. The
new franchise allows for compensation based upon a calculation using a per kilowatt hour
unit rate multiplied by the number of kilowatt hours delivered to retail customers within the
City of Beaumont. These payments historically have been made on the first day of August
of each year for the twelve month period prior to the payment. Because of the acceleration
of the termination of the existing agreement and the implementation of the new agreement
there was a period of transition which has caused an issue between the City and the
Company as to the timing of these payments. The issue is whether the August payments
were a prepayment in advance, which is the position of the Company, or a payment in
arrears for the preceding twelve month period before the August payment. The problem
with the Company's position is that the City does not receive an annual payment for
August, 2006. This translates into an estimated loss in revenue in excess of Three Million
($3,000,000) Dollars. After several discussions and meetings, the parties have agreed to
resolve the issue with the Company continuing to make the annual payment on August 1
of each year beginning August, 2006; and reserving the issue as to whether the payment
is a prepayment or payment in arrears until the year 2017, which is before the end of the
term of the contract in 2018. This reservation would take the form of a letter agreement
between the parties executed by the City Manager as authorized by the City Council.
This amendment resolving the franchise annual payment issue should result in a payment
in excess of Three Million ($3,000,000) Dollars within twenty days of the acceptance of the
agreement by Entergy Gulf States, Inc.
Mayor Pro Tem Beaulieu made a motion to ADOPT ORDINANCE 06-058 ENTITLED AN
ORDINANCE AMENDING FRANCHISE NUMBER 04-068 GRANTED ENTERGY GULF STATES, INC.;
PROVIDING FOR AN ANNUAL PAYMENT; AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AGREEMENT RESERVING UNTIL THE YEAR 2017 THE RESOLUTION OF PAYMENT TIMING ISSUE;
PROVIDING AN EFFECTIVE DATE UPON ACCEPTANCE IN WRITING BY ENTERGY GULF STATES, INC.
Councilmember Ames seconded the motion.
AYES: MAYOR PRO TEM BEAULIEU,COUNCILMEMBERS SMITH,AMES,SAMUEL AND
PATTERSON
NAYS: NONE
ABSTAIN: MAYOR GOODSON
MOTION PASSED
Public Comments (Persons are limited to three minutes)
Roberto C. Flores, Sr. 2425 Buchanan Beaumont TX
Upset that the Budget and Capital Improvement Plan which was just approved by Council
did not include improvement and development plans for the Avenue/College area; felt that
Page 8 of 9 Minutes-September 19,2006
the Neighborhood Plan has been completely ignored and they are now searching for
outside resources to help develop their neighborhood
Open session of meeting recessed at 2:50 p.m.
Audio t e are ila a upon request in the City Clerk's Office.
Guy N. Goodso ayor
AV
i�If ' 1to,
Rose Ann Jones, T C f
City Clerk
Page 9 of 9 Minutes-September 19,2006