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HomeMy WebLinkAbout1978-01-24Regular Meeting Euless City Council January 24, 1978 CALL TO ORDER The regular meeting of the Euless City Council was called to order at 8:00p.m., in the Council Chambers of Euless City Hall by Mayor Harold Samuels. Other members present were Mrs. Willie Mae McCormick, Messrs. Raymond Ozebek, Charles Hunt, Glenn Walker, and Robert Pippin. Also present were City Manager W. M. Sustaire, City Secretary Della Houy, City Attorney Bob McFarland, City Engineer B i l l Flowers, and Assistant City Manager John Lynch, IV. VISITORS Visitors in attendence were Messrs, Jewell Sharp, Michael Clinton, W. L. Weatherby, 0. Q. Whitley, Al Jarrell, Fred Wethy, L. B. Holmes, J. F. Callender, Michael Cornwell and Paul Dorsey; Mesdms. Myrtle Hall, Jerry A. Womble, Don Coach, Tom L. King, Louise Little, Frances Britton, and Becky Gunter. 1NVOCATION The invocation was given by Mrs. Willie Mae McCormick. APPROVAL OF MINUTES The minutes of the regular meeting dated January 10, 1978, were approved with the following clarification of the approval minutes: Mr. Hunt stated that he has reviewed the specifications and has seen Mr. Bullard's recommendation for the three (3) 3/1+ ton pickups from Payhsn - Wright Ford. He stated Mr. Bullard's recommendation was based on the specifications that he had written and not on the lowest bid price. He further stated that to him 3/4 ton pickup is a 3/4 ton pickup and the variations from the specifications seem insignificant and he would recommend we go with the lowest bid. AUDIENCE REQUESTED BY THE EXECUTIVE BOARD OF ALL EULESS SCHOOLS TO DISCUSS TRAFFIC SAFETY FROEILE]VIS Mayor Samuels recognized Mr. Paul Dorsey, (Page Two, Regular Meeting, Euless City Council, January 24, 1978) Assistant Principal of North Euless Elementary School. Mr. Dorsey stated that all the schools in Euless need some type of traffic safety device or some type of control of traffic around the schools. He stated they are concerned for the safety of the children and would like to find some mutual solution to the problem. Mr. Dorsey stated he has several letters from officers of the PTA's of Euless. Mr. Dorsey presented the letters to the Council. Mayor Samuels stated the Council is aware of the traffic safety problem and have installed sidewalks as far as possible with the funds available and have rerouted traffic to one -way at one of the elementary schools. He stated the Traffic Safety Coordinator has done some survey work on the traffic safety at the schools, and the City Manager is looking into several possibilities to correct the problem. Mayor Samuels stated it is not a lack of their concern or their knowledge of the need for safetyi,. for they know there is problem at some of the schools on the busier thoroughfares. Mr. Sustaire stated he has been aware of this situation for a number of years, that the most dangerous crossing in town is SH183 and Vine Street, that there has been a policeman stationed there for a number of years, and now they have the responsibility at Trinity High School on FM157. He further stated the City has the total expense for providing school crossing guards at each of the schools, without any cost for i n s t a l l a t i o n o f t r a f f i c s i g n a l s and it w i I I cost from $400.00 to $2500.00 and are in the process of trying to obtain some figures for installing these lights at all the schools, He stated the main problem is there is not enough money in the budget. Mr. Dorsey stated that the executive board had received a l e t t e r from the C i t y and the l e t t e r states i t w 1 1 1 cost approximately $300.00 to install the caution lights and some of the PTA's have indicated they may be able to assist. Mayor Samuels stated the City has asked TP &L to research the cost of installing the lights and also the cost of operation. He stated the Traffic Safety Officer has obtained figures on the installation and the figures go from $800.00 to $2500.00. He stated the biggest expense would be the installation, as the City can get the lights without much problem. Mayor Samuels stated that as a possible way, if the Council can find funds in this year's budget to install traffic signals at North Euless Elementary School and South Euless; Elementary School, would the PTA's participate in some funds to complete the traffic lights at the other schools next year. Mr. Dorsey stated they talked about this previously, but they didn't want to start something that every school would have to end up paying something on these lights. He stated he would talk to these people again on their participation. (Pape Three, Regular Meeting, Euless City Council, January 24, 1978) Mayor Samuels stated that funds are not available to install all the signals this year, but the City may start by installing two (2) this year and some each year until all have been installed Mr. Walker stated that all the Council is aware of the problem and the urgency, but the Council cannot give them an answer tonight, but will be able to within the next month or two. Mr. Sustaire stated that a survey was made last year and the schools are priorized by actual count of speed and traffic with South Euless Elementary number 1, Central Junior High School number 2, and North Euless Elementary number 3. He stated the City would like to install all of the lights at the same time, but the funds are now available and if the PTA's could assist, more light could be installed. Mr. Dorsey inquired if there was any time deadline that the City would be able to advise the executive board on the installation of the lights? Mayor Samuels stated the City would have to wait until Mr. Heilman returns to work and meet with him, as he needs to handle and coordinate the project. Mayor Samuels stated it will be within the City's fiscal year that these lights will be installed, that it may be before the end of May or before the beginning of school next year. Mayor Samuels stated that M r . Heilman w i l l be the persom to decide the location of the lights, based on the survey report. Mrs. Jerry Womble stated that traffic is most critical on Trojan Trail, but there is a traffic problem on Ector Drive and Midway Drive with the high school young people driving through there. She further stated the children cross the street at two (2) entrances to Midway Elementary School on Ector Drive and some of the children cross Trojan Trail at the back of the school. Mayor Samuels stated they would have Midway Park Elementary School resurveyed on the traffic report to see where it stands now, Mrs. Womble stated that t h i s year we w i l l have the new police s t a t i o n and the new post office opening and that w i l l generate additional danger for the children. Mr. Sustaire stated the priorities are established by vehicle count, actual count of vehicles traveling the street during the day and the actual speed that these vehicles travel in the area at the time. Mayor Samuels stated the Council w i l l have a decision for the executive board by April. Mr. Pippin suggested the City consider the possibility of paying a policeman overtime to set up radar during school hours. (Page, Four, Regualr Meeting, Euless City Council, January 24, 1978) Mr. Joe Callander stated there is probably a number of older men that have had to retire that would like to donate time to help these schools, at these critical points. Mrs. Frances Britton inquired the amount of money available for the lights. Mayor Samuels stated that there is not any money available for this particular project, but the City can usually find a few dollars for something that is urgently needed. Mayor Samuals asked each person to take a consensus of their' PTA to see if they can participate. Mr. Sustaire stated if the City were able to take bids and let a contract it would be May before the lights could be installed, but we are negotiating to get a lower price. CONSIDER RESOLUTION NO. 423 CALLING A MUNICIPAL ELECTION TO BE HELD APRIL 1, 1978 Mr. Hunt moved to approve Resolution No. 1+23 calling a Municipal Election to elect three Councilpersons, Council Place One, Council Place Three, and Council Place Five, to be held April 1, 1978. Mr. Walker seconded the motion and the vote is as follows: Ayes: Messrs. Hunt, Walker, Pippin, Ozebek, and Mrs. McCormick Nays: None CITY ENGINEER'S REPORT Mayor Samuels declared the motion carried. CONSIDER BIDS FOR PHASE III, NORTH MAIN STREET IMPROVEMENTS M r . B i l l Flowers reviewed the bids received for Phase III, North Main Street Improvements. The bids are as f o l lows: BIDDER Texas Bitulithic Co. SRO Asphalt, Inc. Austin Road CO. Metro Asphalt Co. $99,999.63 107,183.20 $1 11,426.41 $122,974.18 COMPLETION DATE 150 Calender Days 95 Calender Days 150 Calender Days (Page Five, Regular Fleeting, Euless City Council, January 24, 1978) Mr. Flowers stated the low bidder was Texas Bitulithic Company, in the amount of $99,999.63, with a completion date of one hundred fifty (150) calender days, and he recommends the Council accept this bid. Mr. Flowers stated that Texas Bituthic Company was also the low bidder on Phase I I of North Main Street Improvements. RESOLUTION NO. 424 APPROVING AND ADOPTING ENGINEER'S ESTIMATES, CALLING A PUBLIC HEARING FOR DETERMINATION CF ASSESSMENT, DIRECTING ADVERTISEMENT AND MAILING NOTICE THEREOF Mrs. McCormick moved to approve Resolution No. 424 approving and adopting the Engineer's estimates, calling a public hearing for February 28, 1978 for determination of assessment, and directing the advertisement of the public hearing and mailing notices thereof. Mr. Pippin seconded the motion. Mr. McFarland stated that Resolution No. 424 is almost identical to Resolution No. 422 for Phase 11, the exemptions being the estimate cost, the fact t h a t there w i l l be no rear yard and side yard credits necessary with respect to this project, and there is a provision in the Resolution for adjustment credit for those abutting property owners that have previously paid for curb, guttering, and streets per standard of the City. He stated the item remaining to be determined is Item A, page 2, the proposed assessment figure that can not be exceeded. Mayor Samuels stated that they do have the estimates and it is the feeling of the Council that the rate should be the same as the rate in Resolution No. 422 that was established by the Council on December 13, 1977. Mr. Lynch stated that a portion of Phase III is zoned residential, that being the United Memorial Christian Church. The vote on Mrs. McCormick's motion, with the rate to be $18.60 per front foot for residentially zoned property and $37.20 per front foot for property zoned other than residential abutting upon such street, is as follows: Ayes: Mrs. McCormick, Messrs. Pippin, Walker, and Ozebek Nays: None Abstain: Mr. Hunt Mayor Samuels declared the motion carried. Mr. Hunt stated that he abstained because he is partial owner of a piece of property that abuts North Main Street. (Page Six, Regular Meeting, Euless City Counci 1, January 24, 1978) V. CONSIDER APPROVAL CF SPECIFICATIONS AND AUTHORIZE CITY MANAGER TO ADVERTISE FOR BIDS FOR ONE 3/4 TON PICKUP FOR ANIMAL CONTROL AND ONE. FOUR-DOOR SEDAN FOR ADM I N ISTRAT ION The Council had previously received copies of the specifications for one 3/4 ton pickup for the Animal Control and one four -door sedan for Administration. They reveiwed the specifications and made changes as needed. Mrs. McCormick moved to approve the specifications as amended and to authorize the City Manager to advertise for bids for one 3/4 ton pickup for Animal Control and one four -door sedan for Administration. Mr. Pippin seconded the motion and the vote is as follows: Ayes: Mrs. McCormick, Messrs. Pippin, Walker, Ozebek, and Hunt Nays: None Mayor Samuels declared the motion carried. VII. PUBLIC HEARING: TEXAS POWER AND LIGHT COMPANY RATE INCREASE REQUEST Mayor Samuels opened the public hearing for a rate increase request for Texas Power and Light Company and stated the Council would heal from: the proponents first then recognized Mr. Bob Daniel, Manager of Texas Power and Light Company. Mr. Daniel stated that on December 21, 1977, he served the City of Euless and all cities they serve and the Texas Public Utility Commission, with a request for an overall average 18.4% revenue adjustments that would increase the company's general revenues by $188 million dollars. He stated the request is based on actual operations for the fiscal year that ended September 30, 1977. He stated the overall request is f o r an average f o r a l l classes o f customers, and revenues w i l l vary from customer to customer. He stated in 1976 the company requested a $135 million dollar in revenue increase and the amount granted by the Public Utility Commis.sion was $58.2 million and went into effect in July 1977. He stated the increase granted was not enough to allow for future construction of needed power plants to meet the needs of the customers and to convert from the use of natural gas to nuclear fuels and lignite coal. He stated the Railroad Commission curtai. led the delivery of natural gas to large users by 25% by 1985 and Federal Regulations call for a total phase out of natural gas for large users by 1990. He stated in 1977, 35% of the electricity they (Page Seven, Regular Meeting, Euless City Council, January 24, 1978) generated was generated with lignite, in 1978 the percentage will increase t o over 54% and by 1979 w i l l increase by over 60%, and in 1981 the company's f i r s t nuclear generation s t a t i o n w i l l be in operation. He stated they must be able to plan and construct new facilities to meet the needs of the present and future customers and at the same time they must continue to convert from usage of natural gas to available alternate fuels. He stated that the use of lignate coal wi l l allow the company to produce electricity cheaper than natural gas, and the supply is much more certain. Mayor Samuels stated that Mr. Daniels has presented seven (7) volumes to the City on the request, and they are avail- able for the Council members and the citizens to review. Mr. Ozebek stated that he thought that, in prior years, any capital improvements .were financed through public financing and according to Mr. Daniel's remarks a rate increase is needed for more construction and inquired if rate increase funds are used in capital improvements? Mr. Daniels stated yes, that they must borrow money to construct new facilities and the rate increase helps the bonding agencies and stock holders when they have to go outside the company and borrow money. Mayor Samuels inquired if the amount of funds in the conversion are greater in proportion to your operation income. Mr. Daniel stated that the clean a i r devices and plant expansion is the cause of the increase request. Mrs. McCormick inquired if the Federal government is requiring the clean air device on all their plants? Mr. Daniel stated that two of their plants have to have the sulphur dioxide cleaned from the air. Mrs. McCormick i n q u i r e d if Texas Power - and Light w i l l be converted from natural gas by 1980, as may be required by the Federal government. Mr. Daniel stated that TP &L would have an extremely d ifficu It time meeting that schedule under today's technology, as they have already made plans to make the conversion, and if they have to convert within that period of time it would be difficult and the amount of money required to convert would be staggering. Mr. Pippin stated that Mr. Daniel said of the $326 million in 1978, 79% would be for the construction of lignate and nuclear plants, and inquired what percentage would be for each type of plant. (Page Eight, Regular Meeting, Euless City Council, January 21+, 1978) Mr. Daniel stated that he did not know at this time but would get the imformation for him. Mr. Sustaire inquired the schedule of TP &L to make a complete conversion from natural gas to other fuels. Mr. Daniel stated it would be the late 1980's or early 1990's but would not be able to get completely off of natural gas, that they would need some gas plants if a plant goes out during peak periods. Mr. Pippin inquired their rate of return on investment. Mr. Daniel stated that based on a formula, it is approximately 8 %, if they get the increase requested. Mayor Samuels inquired the rate of return on the present rate. Mr. Daniel stated he doesn't have that w i t h h i m but w i l l get that information for the Mayor. Mr. Hunt inquired how he wculd character- ize the efficiency of the lignite plants that are in operation at this time as compared with natural gas, Mr. Hunt stated that he heard that the huge fuel cost that the citizens had to pay last summer was due to failure of some of the lignite plants, and causing TP &L to use high priced natural gas. Mr. Daniel stated that he hopes this does not happen again as they make very close inspections to find any problems, and the problem: found last year was discovered during an inspection. Mr. Hunt inquired the comparison of nuclear fuel to lignate coal on cost. Mr. Daniel stated it would cost more than lignate fuel, but not as much as natural gas. Mr. Hunt inquired if Mr. Daniel, when talking about the cost of natural gas in 1982, is thinking the cost wi I I continue to escalate or is he thinking in today's cost. Mr. Daniel stated that barring any un- known regulations or something they have no control over, it would be cheaper than natural gas. (Page Nine, Regular Meeting, Euless City Council, January 24, 1978) Mr. Pippin inquired the longest term for the old contracts for natural gas that TP &L has at this time, and what is the cost of that? Mr. Daniel stated he believes the contract expires i n the 1980's, but 1 1 1 I have to get that information for the Council: Mr. Pippin inquired if each power company has to contract for their own fuels? Mr. Daniel stated up until the lignate plants were completed, each company had to find their independent contract for fuel at the power plant, but since that time when the companies joined together to build the lignate plants, the new contracts are handled by Texas Utility Company. Mayor Samuels inquired if there were any other proponents; there being none, he inquired if there were any opponents. Mr. L. B. Holmes, 806 Oakwood Drive, inquired if this is another case of where North Central Texas Council of Governments has dictated a rate increase, as they did in the water increase. Mrs. McCormick stated that North Central Texas Council of Governments is not the one that dictated the water rate, that comes from the Stated Water Quality Board on what the requirements were and that came from the Federal government in their bill and TRA has the water contract. Mr. Holmes stated that when he came down to oppose that the Council didn't have any alternative but to approve the rate increase. Mayor Samuels stated that the bond indebtedness and cost to secure and treat the water caused the rate increase. Mayor Samuels stated that when Texas Power anc' Light presented their rate request to Euless, and other cities they serve, they also filed a rate increase request with the Public Utility Commission for other areas outside the incorporated areas. He stated the City has control up to a point and other than that, if the City rejects any rate increase or approves a rate increase lower than the increase approved by the Public Utility Commission, TP &L can appeal the decision to the Public Utility Commission. Mr. Holmes stated that he agrees the Council does not have a difficult decision to make, but someone is going to have to deny the request and he is appealing to the Council to deny this request, that TP &L find the money they need by reducing their cost of operation. (Page Ten, Regular Meeting, Euless City Council, January 24, 1978) Mr. Joe Callender, 1008 Fayette, stated h i s daughter l i v e s in an a l l e l e c t r i c home and her e l e c t r i c b i l l this month was $126.00. He stated she sets her thermostat at 500 when she is not at home. He states he comes from a part of the country that produces coal and the Tennessee Valley Authority produces electricity for four states, at a very nominal price. He further stated that a friend of his told him that the State of Texas is undetermined with lignate coal, but the problem is mining. He further stated the rates are exorbitant and retired people have a hard time making it on their money and someone is going to have to say no, and he is opposed to the increase. Mr. Daniel stated that he shares the concern of the people about the cost of electricity and had TP&L not started construction on the lignite and nuclear plants when they did, the cost of electricity would have been considerably higher now than it is. He stated lignate does not run through Texas and TP &L cored some of that lignate in 1949 and 1950 and some of that coal is not as good as other coal as the BTU's are not as high, and some is in excess of 200 feet and would not be economical to mine. He stated TP &L is looking into other fields of lignate coal because they are concerned with the cost to the customer. Mayor Samuels stated that none of the Council are experts in the rate field and he is going to recommend the City join with other cities in a rate study by a rate consultant. Mayor Samuels inquired if there were other proponents or opponents; there being none he declared the public hear- ing closed. Mayor Samuels stated the Public Utility Commission Act indicates that a governing body has to take some action within thirty -five (35) days of the application for a rate increase, if they took no action, the rate went into effect immediately. Mayor Samuels stated the Council has three choices tonight, since this is the thirty- fourth (34) day, which are pass it, deny it, or table it for study. He stated no one on the Council wants to approve it tonight, if the Council denies the request, TP &L can appeal to the Public Utility Commission and put the rate into effect by posting a bond for the difference between the existing rate and the new rate and there is a stipulation in the Public Utility Commission Act that allows the governing body to suspend the dicision for up to 120 days for further study, which gives the City time to talk to the consultants and see what the Public Utility Commission does with their rate case in the rural area. RESOLUTION NO. 425 Mr. Walker moved that Texas Power and Light Company's rate increase request be tabled and that puruant to Section 43 (d) of the Texas Public Utility Act, final action on such request be delayed for a period of not more than 120 days so as to allow the City (Page Eleven, Regular Meeting, Euless City Council, January 24, 1978) Council and City staff the opportunity to conduct further investigation and to gather additional data to determine what is a reasonable rate base, expense, investment and rate of return for Texas Power and Light and to engage, if necessary, rate consultants, accountants, auditors, attorney's, engineer's and /or a combination thereof to assist the City Council in making such decision, that a copy of this resolution be delivered to Mr. Bob Daniels, Texas Power and Light Company's manager, by close of business January 25, 1978. Mr. Pippin seconded the motion and the vote is as follows: Ayes: Messrs. Pippin, Walker, Ozebek, Hunt, and Mrs. McCormick Nays: None Mayor Samuels declared the motion carried. It was the consensus of the Council that the City of Euless join other Texas cities in a rate study by a rate con- sultant. VIII. CITY ATTORNEY'S REPORT Mr. McFarland reported that the State of Texas vs. the City of Grapevine has been set for trial this week, and could be settled out of court. Mr. McFarland stated that the Council has requested the City Attorney explore, on behalf of the City, the possi- bility of obtaining liability insurance coverage with respect to City officials. He stated he has checked with the City's insurance carriers and they have attempted to obtain quotes for coverage and have found one carrier that will insure City officials and this carrier is sending sample p o l i c y forms t o M r . F u l l e r , the C i t y ' s insurance c a r r i e r , and he w i l l make those available to the City Attorney and he wi I I review these forms for the Counci 1. IX. APPOINTMENT TO ZONING BOARD OF ADJUSTMENT Mr. Sustaire stated he recommends Mr. W. J. "Doc" Hyde to fi I I the vacancy in the Zoning Board of Adjustment. Mrs. McCormick moved to concur with the recommendation of the City Manager and appoint W. J. "Doc" Hyde to f i11 the balance of the term on the Zoning Board of Adjustment. (Page Twelve, Regular Meeting, Euless City Council, January 24, 1978) Mr. Ozebek seconded the motion and the vote is as follows: Ayes: Mrs. McCormick, Messrs. Ozebek, Pippin, Walker, and Hunt Nays: None Mayor Samuels declared the motion carried. X. ADJOURNMENT There being no further business the meeting adjourned at 10:25 p.m. APPROVED: /s/ Harold D. Samuels Mayor ATTEST : /s/ Della Houy City Secretary