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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) 9 T 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 98 5195 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