1972 03 30 CC Minutes, Special5193
THE MINUTES OF THE SPECIAL
MEETING OF THE CITY COUNCIL OF THE CITY OF BAYTOWN
March 30, 1972
The City Council of the City of Baytown, Texas, met in special session on
Thursday, March 30, at 4:45 p.m., in the Council Room of the Baytown City Hall
with the following members in attendance:
Jody Lander
Leonard Stasney
Ted Kloesel
Jim McWilliams
C. 0. Walker
* ** Allen Cannon
C. Glen Walker
J. B. LeFevre
Neel Richardson
Absent: Edna Oliver
Howard Northcutt
Cauncilman
Councilman
Councilman
Councilman
Councilman
Councilman
Mayor
Acting City manager
City Attorney
City Clerk
Administrative Asst
Mayor Walker called to.order the recessed meeting of March 28, for the
purpose of acting on the rate increase and franchise for General Telephone Company.
City Attorney Neel Richardson introduced the proposed Ordinance No. 1205,
granting a franchise to General Telephone, and noted several changes in the ordinance.
(1) The term of years for the franchise has been left blank (2) Wires constructed
or replaced after the date of passage of the ordinance shall be 18' above any traveled
surface; (3) "The Company agrees .... to pay the City ..... two (2 %) per cent of
the annual gross receipts ... from its 'local telephone transmission operations'....
within the Corporate limits of the City ". Mr. Richardson explained "telephone
operations" had been deleted from this phrase and "local telephone transmission
operations" inserted because a Supreme Court ruling indicated the City cannot legally
collect on all phases of operations of the telephone company. A lengthy discussion
followed concerning this change, at which time Mr. Richardson.l_eft the chair to
find and present to Council the ruling to which he referred. '
*Councilman Cannon leaves meeting.
Jones Street
Mayor Walker suggested taking action on the Jones Street repaving while
waiting for Mr. Richardson to return. Mr. LeFevre estimated the cost of repaving
Jones Street from Sterling to Schilling to be $36,000. He informed Council
a waterline would be installed_ soon, and suggested waiting until this work is
completed before repaving the road. Discussion followed as to where funds for this
project would be provided, and several suggestions were made. Jones Street could
be included in the 1971 -'72 street program; or because the new budget year is
approaching funds could be transferred after bids are awarded. CouncilmanStasney
moved to advertise for bids on repaving Jones 8treet� from Sterling to Schilling.
Councilman McWilliams seconded the motion. The vote follows:
Ayes: Councilmen Lander, Stasney, Kloesel, McWilliams
Mayor Walker
Nays: Councilman Walker
Resume consideration of Telephone Franchise
Ciyt Attorney Neel Richardson introduced the Supreme Court Case, Smith vs.
Illinois Bell Telephone Company, which designates who make any authority, whatsoever,
over revenues depending upon whether they are local or toll. Mr. Richardson was
instructed to leave the ordinance as it originally read (telephone operations) and to
strike the phrase, "except receipts from its toll operations.. ". By doing this, if at
any time legislation changed regarding the gross receipt tax, this franchise would
automatically change with it. ( ** Councilman Cannon returns)
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Minutes, March 30, 1972 5194
Telephone Franchise..con't
Mr. Richardson noted two other changes in the franchise, in Section 8:
"Hereafter, where conduits are laid or are constructed by the Telephone Company,
said Company shall furnish sufficient duct space free of charge, not to exceed the
capacity of one duct for use by the City in carrying its police and fire alarm wires,"
and Section 10, lowering penalty from $500 to $200 and providing for a public
hearing. Councilman Kloesel moved to grant the franchise for a 12 -year period.
Councilmen McWilliams seconded the motion. The votefollows:
Ayes: Councilman Kloesel, McWilliams and Walker
Nays: Councilmen Lander, Stasney, and Cannon
Mayor Walker
Councilman Cannon moved to grant the franchise for a 15 -year period.
Councilmen Lander seconded the motion. The vote follows:
Ayes: Councilmen Lander, Stasney, Cannon
Mayor Walker
Nays: Councilmen Kloesel, McWilliams, and Walker
Councilman Cannon moved to adopt Ordinance No. 1205 on first reading.
Councilman Stasney seconded the motion. The vote follows:
Ayes: Councilmen LandelfStasney, Kloesel, Wllker and Cannon
Mayor Walker
Nays: Councilman McWilliams
Adopt Rate Increase
City Attorney Richardson introduced and read the caption of Ordinance No. 1206
granting a ten per cent (108) rate increase to General Telephone, and a preamble to the
ordinance making the increase contingent and effective upon the acceptance of the
franchise by General Telephone and after three readings by the Council. Mr. Dick Phelps
expressed disapproval with the intent of the preamble, and stated his company could not
accept the franchise as adopted because of the wording in Section 7(a) regarding
the tax collected on "telephone operations ". Councilman McWilliams presented a letter
from the FCC, Domestic Rates Division in Washington, which he interpreted to mean
Baytown had authority over all rates and all calls in the City. After much discussion,
Councilman Stasney suggested amending that section to read, "total operations as limited
by state and federal applicable regulatory agencies "; and moved to reconsider Ordinance
No. 1205. Councilmen Cannon seconded the motion. The vote:
Ayes: Councilman Lander, Stasney, Cannon
Mayor Walker
Nays: Councilmen Kloesel, McWilliams and Walker
Mayor Walker declared the motion failed because of lack of 2/3 majority.
Councilman Lander moved to adopt Ordinance No. 1206 granting a ten per cent rate increase
to General Telephone. Councilman Cannon seconded the motion.
Councilman Kloesel moved to table action on this ordinance until the next
regular Council meeting, which will be the second reading of the franchise ordinance.
Councilman McWilliams seconded the motion. The vote follows:
Ayes: Councilmen McWilliams, Kloesel, and Walker
Nays: Councilmen Lander, Stasney and Cannon
Mayor Walker
Councilmen Kloesel moved to table action on this ordinance until April 10 at
7:00 p.m. Councilmen McWilliams seconded the motion. The vote follows:
Ayes: Councilmen Kloesel, McWilliams, and Walker
Nays: Councilmen Lander, Stasney, Cannon
Mayor Walker
Councilman Kloesel moved to amend Exhibit "A" in the ordinance by rounding
off the figures for the following classes of service: (1) Business extension, $1.93-amend
to $1.90; (2) Residential one -party $8.53 - amend to $8.50; and (3) Residential extension
$1.38 - amend to $1.40. Councilman Stasney seconded the motion. Because there was some
question to the overall effect this would have on the rates,Councilman Stasney withdrew
his second and the motion died. Mr. Phelps stated he was in favor of rounding off the
figures as it would simplify the billing. Councilman Kloesel restated the motion and Councilm
Lander seconded. The vote follows:
Aye: Councilmen Lander, Stasney, Kloesel, McWilliams, Walker and Cannon
Mayor Walker
Nay: None
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Minutes, March 30, 1972
Mayor Walker called for a vote on the original motion to adopt Ordinance NO. 1206.
Ayes: councilmen Lander, Stasney, Kloesel, Walker and Cannon
Mayor Walker
Nays: Councilman McWilliams
Councilman Kloesel moved to instruct the Attorney to prepare a resolution
in order to take official position of assisting the residents of the *Shiloh area
in resolving their problems with General Telephne. Councilman McWilliams seconded
the motion. The vote follows:
* to be referred to as "the greater metropolitan Baytown"
Ayes: Councilmen Stasney, Kloesel, McWilliams, Waker and Cannon
Mayor Walker
Nays: None
Abstained: Councilman Lander
Mr. Frank Yates suggested Council form a committee, composed of three
representatives of the telephone company and three citizens to decide what constitutes
a "complaint" about telephone service; and to keep a log of the legitimate complaints
at City Hall.
Adjourn
Councilman Walker moved to adjourn. Councilman Lander seconded the
motion. The vote was unanimous and the meeting was adjourned.
APPROVED:
ATTEST:
Belinda Bingham, DeputyCitty Clerk
1;
C. Glen Walker,Mayor