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1982 08 26 CC Minutes20826 -1 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF BAYTOWN August 26, 1982 The City Council of the City of Baytown, Texas, met in regular session on Thursday, August 26, 1982, at 5:30 p.m. in the Council Chamber of the Baytown City Hall with the following attendance: Fred T. Philips Jimmy Johnson Perry M. Simmons Mary E. Wilbanks Roy L. Fuller Allen Cannon Emmett 0. Hutto Fritz Lanham Larry Patterson Randy Strong Eileen P. Hall Councilman Councilman Councilman Councilwoman Councilman Councilman Mayor City Manager Assistant City Manager City Attorney City Clerk The meeting was called to order with a quorum present and the invocation was offered; afterwhich the following business was transacted: Minutes Councilman Wilbanks moved for approval of the minutes for the special and regular meetings held August 12, 1982; Councilman Johnson seconded the motion. The vote follows: Ayes: Council members Wilbanks, Fuller Mayor Hutto Nays: None Receive Petitions Philips, Johnson, Simmons, and Cannon Councilman Johnson acting as a private citizen presented a petition with a total of 556 signatures requesting that Softball Field "A" at the Wayne Gray Sports Complex be named for Mr. Butch Young who had contributed so much to the youth of Baytown. Councilwoman Wilbanks moved to accept the petition; Councilman Simmons seconded the motion. The vote follows: Ayes: Council members Philips, Simmons, Wilbanks, Fuller and Cannon Mayor Hutto Nays: None *Councilman Johnson at the podium. 20826 -2 Minutes of the Regular Meeting - August 26, 1982 Mr. Lanham mentioned that the Baytown Parks & Recreation Advisory Board has adopted a policy regarding the naming of parks and parks facilities and inquired if Council would like to refer this matter to that Board. Councilman Johnson moved that the petition be referred to the Baytown Parks & Recreation Advisory Board for consideration; Councilman Philips seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Fuller and Cannon Mayor Hutto Nays: None City Manager's Report Brownwood Subdivision Report - Mr. Lanham briefly reviewed a memorandum from Larry Patterson, Assistant City Manager, concerning problems in the Brownwood Subdivision. A copy of that memorandum is attached to the minutes as Attachment "A ". Councilman Cannon clarified that when Ridgeway was deleted from the list of streets to be repaired, Council had recently expended approximately $400,000 for the Perimeter Road while the taxes derived from the area were approximately $28,000. Besides that, at that time the City was in the process of attempting to have the area evacuated through participation with the Corps of Engineers. Mrs. Shepherd will be given a copy of the memorandum. Houston Lighting and Power Company - The fuel cost adjustment for the month of September is $ .11 below the cost for August for the customer using 2,000 KWH. Chief of Police - Wayne Henscey, Chief of Police, has received an invitation from Mr. William H. Webster, Director of the FBI, to participate in the Law Enforcement Development Seminars to be held at the FBI Academy on September 26 through October 8. The FBI will pay all expenditures. Drainage Work - City crews have completed the Jasmine and Narcille drainage work; the work on Crow Road is about twenty (20 %) percent complete. Community Development (Cypress /Magnolia) - The project is complete with the exception of cleanup. 1982 Street Improvement Program - Curb and gutter has been replaced on Georgia and some base work has been done. Curb and gutter has been replaced on East Wright and Gresham. Some streets were only to be overlaid and the contractor has completed overlaying Pecan Manor, Bayou Avenue, Elton Avenue, Cedar Avenue and Pecan Street. The contractor is responsible to remove any excess dirt and driveways are replaced. 20826 -3 Minutes of the Regular Meeting - August 26, 1982 West District - McKey Construction received final inspection-and for the most part everything on the contract had been completed. Questions and Comments of Council Council requested that the Administration: 1. Check on the possibility of a "protected left turn on arrow only" at Garth and Rollingbrook. 2. Contact the railroad regarding work performed at the Decker Drive crossing. 3. Keep Council apprised of the progress being made to cleanup the house on Largo Street. 4. Check with the highway department regarding improvement of State Highway 146 at Fayle Street. 5. Check on situation off Cary Lane, a long narrow street off Cedar Bayou Crosby Road, where it appears that lots are being staked off for sale. Mr. Lanham, in response to inquiries from Council, explained that the Administration had been working on the acquisition of a small triangular parcel of right of way to install a signal at Schilling and Garth Road near the Centennial Square Apartments. One owner is in Saudi Arabia, but a local real estate agent has authority to handle the transaction upon approval from the owner. On the other parcel, the owner has agreed to sale the necessary right of way. All that is necessary is to acquire an executed deed. With regard to the placement of a mobile home off Kilgore Road, that side of Kilgore Road is only ten (10) feet above sea level and therefore, it is prohibitive to place a trailer within the flood plane. The water leak at Dale and Sheridan had been repaired, but the line broke again. It will be necessary to replace a section of two -inch line. The City Attorney's office is working on a report concerning billboards which will indicate to Council what authority the city has or could have by the adoption of ordinances. Councilman Philips stated that the main thrust of what he had been hearing was that billboards are acceptable in commercial areas, but not in residential areas. The City does have an inspector who surveys for abandoned vehicles. At present, the city's storage area is filled to capacity. In the very near future, an auction will be held. With regard to the possible striping of Deanne Street, Mr. Lanham explained that Deanne is probably a 29 -foot street and with striping, if people park on Deanne, there is a problem with their being in violation of the law. 20826 -4 Minutes of the Regular Meeting - August 26, 1982 Mayor Hutto commended Mr. Lanham on his being elected Vice President of the Texas City Manager's Association. Mayor Hutto suggested that the Administration be in contact with Harris County regarding the possibility of the county installing a metal barrier similar to the ones used by the county on approaches to bridges on Baker Road between the roadway and Walden Oaks. Mr. Lanham mentioned that another day care is being constructed off Massey Tompkins Road with the play yard to the front of the structure. There are no restrictions in this regard. Mayor Hutto mentioned that there is a 30 mph speed-zone along that portion of Baker Road which Council established when Baker was a two -lane roadway. Mayor Hutto requested that the Traffic Commission consider establishing a speed limit for the street which would be more conducive to what the traffic flow is. Councilman Fuller stated that conditions along Baker Road should be taken into account. Mayor Hutto mentioned that the school speed signs have been posted for the year and the signs on Baker Road read 7 :00 a.m. to 4:00 p.m. Council had previously taken action for school signs to read 7:00 a.m. to 9:00 a.m, and 2:00 p.m. to 4:00 p.m. Hold Public Hearing on Houston Lighting and Power Company's Rate Increase Mayor Hutto called the public hearing on Houston Lighting and Power Company rate increase request to order and advised all those present who might desire to testify at the hearing that a register for that purpose had been provided in the hallway. All present were given ample opportunity to sign the register. Mayor Hutto explained that after the representatives of HL&P had made their presentation and the city was allowed time to present its case, the list would provide the order that persons would be called upon to speak. Mayor Hutto encouraged everyone to be brief and to the point. He informed those present that HL&P had requested a system -wide increase that would increase the company's revenues by $336,000,000. The City of Baytown has jurisdiction over these utilty rates and the hearing was to provide City Council with information necessary to determine rates that HL&P should charge. After hearing from HL&P and the city's consultants, Council would welcome any additional testimony. Mayor Hutto requested that Mr. Jim Schaefer address City Council regarding HL&P's proposal. Mr. Schaefer stated that he had no formal statement to make. He mentioned that the ordinance that Council would be taking action on came about as a result of a study and public hearing that had been conducted by the City of Houston's Public Service Department as.based on testimony by Don Gordon, Chief Executive Officer of HL&P. Beyond that Mr. Schaefer stated that he would have no further comments, other than to answer any questions Council might have. 20826 -5 Minutes of the Regular Meeting - August 24, 1982 Randy Strong, City Attorney, pointed to several stacks which represented the HL&P rate filling package. The package contains the testimony of Mr. Gordon and numerous other persons. As part of the Coalition of Cities with Original Jurisdiction, the City of Houston provided its staff rate consultants to other cities. The City of Baytown has copies of their testimony and the City Attorney offered the direct testimony to Council of Harvey Winkleman, Ellen Blumenthal and Jane Wilton. Council was provided in its packet a summary of the testimony of those individuals and their recommendations. That summary is attached to the minutes as Attachment "B." The consultants are recommending an increase of $181,561,000. Since Council had been provided with this summary, the City Attorney stated that he would not go completely through the summary, but would answer any questions that Council might have. Mr. Strong also presented a copy of the proposed tariff which consists of the rate schedules that would set the rates for HL&P within the city limits of Baytown based on the recommendation before Council. Mr. Strong presented the facts that under present rates, consumption of 500 KWH for one month would cost $38.86; while costs under the proposed rates would be $44.59. For a user of 1,000 KWH for one month, the cost would be $87.36 versus $99.53. The city's proposal would mean that a user of 1,000 KWH for one month would pay $81.94. For 2,000 KWH, the present rates would cost $169.66 versus $189.86. The city's proposal would cost $177. However, the proposed city's tariff does not include summer and winter rates. One would pay the same amount year round based on consumption. For instance, while under the HL&P proposed rates, a person might pay $188.86 in the summer, those using 2,000 KWH in the winter would cost $156.20. Under the city's proposed schedule a person would pay $177 year round. Basically under the city's proposal 1,500 KWH is the cut -off point and if a person uses less than 1,500 KWH per month, there is a considerable savings. Tony Polumbo, State Representative, stated that he came to appear at the public hearing because he represents part of Baytown and he was concerned with the rate increase requested by HL&P. He acknowledged that he was aware that the City of Houston has recommended approximately $180,000,000 increase, but the original request was $380,000,000. If the $180,000,000 is equated to rate of return, that dollar amount represents 16.95% rate of return on equity. Representative Polumbo stated that with the current economic times and considering the strain and stress on the average pocket book, that rate of return is much too high. Representative Polumbo recommended that Council begin to take a more careful look at fuel costs since over half the utility bill is attributed to fuel costs. He mentioned that City Council had original jurisdiction and could scrutinize fuel costs more closely. Again, Representative Polumbo pointed to the rate of return on equity and asked Council to deny the $181,000,000 and only grant the company 16% return on equity which is required by law. He stated that the guaranteed 16% would need to be addressed by legislators. One proposal that will be considered is to Sunset the PUC and put jurisdiction back where it belongs - -at the local level. He mentioned that the Texas PUC is the nation's second most friendly toward the utility company. 20626 -6 Minutes of the Regular Meeting - August 26, 1982 Represetative Polumbo asked that Council consider denial of the company's request in light of the 16.95° rate of return on investment. He stated that from speaking with many people, there are many who are concerned with the. escalating costs of electricity and requested that Council deny the company's request. Mayor Hutto replied tha Council was certainly cognizant of the problem, but Council felt that it would be an exercise in futility to attempt to fight HUP alone. The law is so structured that Council does not have control of the rate. Mayor Hutto commended the local managers of HUP, however, Mayor Hutto stated that he did not feel that the ratepayers should pay for the mistakes of management. That should be the obligation of shareholders. However, Mayor Hutto stated that he did not want to address that by spending a great amount of money for consultants only to have the PUC reject the city's presentation. The Mayor stated that cities need help at the State level. Representative Polumbo assured Mayor Hutto that this question would be addressed most vigorously on many fronts the next session of the legislature. Either the PUC would. be abolished or the legislation which created the PUC would be strengthened to give the PUC more power to handle the rate - making process more effectively. He stated that he could understand the cities' frustrations because no matter what decision is made at the local level that decision may be appealed to the PUC. Mayor Hutto stated that anytime representatives of the company are questioned concerning fuel costs adjustments, a stock answer is always received. Cost of fuel in other areas is declining, but on HUP bills, that cost continues to escalate. Mayor Hutto stated that the City Council of the City of Baytown would need help to make a determination regarding fuel costs. Representative Polumbo stated that Council at some point would need to make the decision of whether it would like to retain local control. Mayor Hutto continued that he would like to see the company go -on the open market for its money. The company would not have as much equity and its bond rating would not be as high, but so what. That way maybe the company will manage its money better. As a businessman, the Mayor felt that with the reduced bond rating, the company would have to pay more for its money, but by the same token he felt that this would bring on better management. Representative Polumbo requested that Council take a stand and in Austin, he would take a stand on the proper equity that the company should be receiving. Mayor Hutto stated that the city had joined with the Coalition of Cities with Original Jurisdiction to obtain the best rate possible and the coalition has suggested a rate which was felt to be fair. The Mayor stated that personally he would vote against giving the company anything, except for the recommendation of the coalition. Mayor Hutto felt that if Houston had withdrawn, the whole effort would have crumbled. 20826 -7 Minutes of the Regular Meeting - August 26, 1982 Representative Polumbo commended Council for joining the coalition, but mentioned to Council the rising costs and the people on fixed incomes who are being adversely affected. He stated that he looked forward to working with members of Council while in Austin. He agreed that the legislature had created an awkward situation for Council to deal with and stated that that situation needed to be corrected. Councilman Philips stated that he felt that in the matter of the fuel costs adjustments, the light company is being given carte blanche approval to handle fuel cost adjustments in any manner they deem advisable. He felt that HL&P needed to be given the managerial responsibility of purchasing fuel at the most economical costs and then using it in the most economic manner to produce electricity. Representative Polumbo added that the company's rate of return needs to be tied to economic conditions so that its rate of return is in line with other businesses. Councilman Philips stated that having worked in industry along the lines of attempting to get some guidelines he would recommend the Texas Air Control Board or the Texas Air Quality Board. Both are structured in such a manner as to provide for the public's best interest and he commended both organizations. The legislature could consider the operation of these two organizations in looking at replacing the PUC with something that would better serve the public's interest. Representative Polumbo suggested that the three members of the PUC are appointed by the Governor and if citizens begin to let the Governor know of their dissatisfaction with the PUC, he felt that this would produce favorable results. Representative Polumbo again encouraged Council to refuse the company's request. He felt that granting the $181,000,000 which translated to over 16% return on equity was too high. Councilman Cannon inquired why the coalition recommended the 16.9% return on equity. The City Attorney stated that he was not certain of what Representative Polumbo was referring to when he mentioned that the law specifies that the company must get 16% return on equity. The 16.95% return on equity was derived after the cities' representatives reviewed the request and deleted a number of items which represented about $150,000,000. The problem is that HL&P is in the mist of an extensive construction program and in order for the company to maintain its financial integrity, the company must get a higher return on equity. If the company were reduced to 10% on equity, this would have the effect of destroying their financial creditability and the company would not be able to borrow. The idea is not to destroy the company, but to keep the rate of return as low as possible, but allow the company to be on going. Councilman Cannon stated that Representative Polumbo had made a good point in that there are many companies that would appreciate this type of return on investment. 20826 -8 Minutes of the Regular Meeting - August 26, 1982 The City Attorney stated that he was unaware of any statute that established a specific rate of return. As he recalled the rate of return allowable is that which will allow the company to maintain its financial integrity. Representative Polumbo stated that the guidelines are if the company does everything right, a 16% rate of return is guaranteed. He commented that without a rate increase at all the company would still be making approximately 16% rate of return. The City Attorney called Council attention to the recommendation of Ms. Blumenthal who had made recommendations, not only for this rate case, but future rate cases. She recommended that since the cost of the South Texas Project has soared from about $790 million to $5.5 billion, to place a cap on the $5.5 billion. HL&P has a 39% share in that. Any increased costs above the $5.5 billion will not be passed on to the rate - payers, but will be absorbed by the investors. In the future this escalation will not be passed on to the ratepayers and in future rate cases, the company will not be allowed to pass on costs beyond the $5.5 billion to ratepayers. Mayor Hutto responded that the company has allowed the costs to escalate to $5.5 billion. This is not the place to put a cap, the cap should have been placed on the $790 million. The City Attorney pointed out that another major change the coalition of cities is recommending is that there should not be a recovery for the abandonment or cancellation of the Allen's Creek Nuclear Project. Part of the company's proposal is that some $362 million should be allowed the company as a write -off. The cities have taken the position that since the company has not taken a definite commitment one way or the other, the company should not be allowed to recover anything for writing off that project until that final decision has been made. Therefore, that amount has been backed out of the rate base. Councilman Cannon informed Council that it had been announced that the company has definitely decided to abandon this project. The City Attorney responded that if this is allowed, the cities' recommendation is that the method of write -off be the usual method utilized by the PUC, the straight line ten -year method. The company has recommended that the write -off be in the first few years. Councilman Cannon stated that on some of these management decisions whether good or bad, these should be passed on to the stockholders and not the ratepayers. Councilman Cannon then inquired of Jim Schaefer, how the company became involved in Allen Creek with an expenditure of $324 million for the plant and $64 million for nuclear fuel before cancelling the prject. Jim Schaefer, Division Manager of Houston Lighting and Power Company, responded that perhaps Council would like to know some of the history behind the Allen Creek Nuclear Project. Nuclear power has been produced economically in the United States since 1957. All utilities must go through a licensing process with the Nuclear Regulatory Commission. In 1973 the company 20826 -9 Minutes of the Regular Meeting - August 26, 1982 made the decision to construct the Allen Creek project. At that time the inflation rate was 4 %, house mortgage rates were 7% and capital was much less than 7 %. The project appeared to be an extremely good decision. The company was committed to the project and to following all the rules to obtain a permit to construct said plant. The company naturally assumed that if all the rules were met, that the permit would be issued and construction would be no problem. The company is now ten years from the initial decision to construct the Allen Creek plant and the company has been in off and on hearings before the Nuclear Regulatory Commission to obtain construction permit. If the company had construction permit in hand today, the project would still be viable, but the regulatory lag being as uncertain as it is today, the company is not certain when the permit could be secured and time marches on so the decision had to be made. Mr. Schaefer stated the system of regulatory process in the United States today is prohibitive to the development of nuclear energy. Other countries have been quite successful in their development of nuclear energy in a shorter period of time at half the costs. The company is reacting to the facts and it would be very imprudent to not evaluate the project at this time and try to get it going. The company has a nuclear power plant to which major components are stored in warehouses. Westinghouse, when HL&P ordered its reactor in 1974, produced a sister reactor which was purchased by the Republic of Taiwan which is producing electricity today. The company proposed to find a buyer for the components, but the company feels that the buyer will not be in the United States because the prospect for nuclear energy in this country is dead. Councilman Cannon inquired if the company had to acquire permits to utilize lignite. Mr. Schaefer responded that the regulatory process was not the same. The company must go to the PUC to acquire those permits. If you really look at the process anyone can slow down and delay and in the utility business, slow down and delay is tantamount to denial. Mr. Schaefer stated that part of the problem that the company faces is the cumbersome rate - making procedure in the State of Texas where there is a dual jurisdiction. In 1975 prior to enactment of the law which established the PUC, Texas was the last state to adopt laws to establish a Public Utility Commission. If there were no such legislation in existence, possibly Baytown and one or two other cities would band together to make a decision and that would be the final decision. There is a PUC and what the act gave to PUC in effect is original jurisdiction. It gave the concept of dual jurisdiction to the cities, but when the legislature set up the act, the PUC was the final authority and appealing body. Therefore, effectively the PUC sets the rate. This is an extremely cumbersome method. It is costly to the company, ratepayers and cities. It is difficult to sit on Council and address the issues of a rate request. Those issues that address things like service can be easily handled at the local level. The company has no preference with regard to who should maintain jurisdiction over the rate - making process; however, the company would like for it to be either one or the other. 20826 -10 Minutes of the Regular Meeting - August 26, 1982 Mr. Schaefer apologized to Councilman Philips for not responding to a letter from the Councilman regarding fuel costs, but Mr. Schaefer explained that he had received the letter just prior to leaving on vacation. Mr. Schaefer stated that the reason for the fuel cost adjustments can be adequately demonstrated by looking at the fact that there are some incentives in the fuel adjustment clause. He stated that perhaps the company has a tendency to over - simplify and it appears on the outset that the company is careless The company purchases gas by BTU content which BTU content is monitored on a 24 -hour basis. Each one of the plants have calibrators. Fuel oil is purchased by bid basis on lowest costs. Natural gas and coal are not purchased in that fashion because of the large quantities that the company purchases. Mr. Schaefer stated that he would get Councilman Philips a response in writing. The company is a very large company and serves a very large area electricity wise. This is a very difficult job and employees of HL&P are human, and from past experiences, they are better managers. The personnel of the company live in the area and they pay the same utility bills. No utility company likes to see continued escalating rates. Everyone would be happier with stabilized rates. The rate - making process is a very difficult process with many facets that are difficult to understand. Many companies today are in the process of curtailing and HL&P could be in that same posture. The company could shut down the construction program and not borrow the massive amounts necessary to construct new plants to continue to support the tremendous growth of this area. However, the company feels that that wouldn't be a very prudent decision nor the decision that the city or the PUC would have in mind. Power plants cannot be constructed without long lead times. In that way, the company is a little different in having to meet the demand even in very adverse conditions. There have been very adverse conditions in the capital market which have caused a severe dampening of construction programs in many other industries. In summarization, Mr. Schaefer stated that the city or the State could form a utility company and buy out HL&P, but the same problems would still exist. There are no easy answers. Councilman Simmons stated that Mr. Schaefer had made a valid statement about the need to construct plants for the future, and inquired if in determining a rate base, a certain percentage of construction in process is considered as part of that rate base. To this question, Mr. Schaefer responded in the affirmative. The City Attorney stated that it was 100% this year. Councilman Simmons stated then whatever millions of dollars the company had invested in construction, part of the rate is to cover that expenditure. The company then acquires this construction as assets. Councilman Simmons stated that the money the ratepayers pay toward construction should be considered a loan to the company and that the company should have a column on its billing which indicates the loan amounts and at the time the plant is fully constructed, the company should begin remitting to its customers until that loan is paid in full. 20826 -11 Minutes of the Regular Meeting - August 26, 1982 Mr. Schaefer responded that that was a very philo- sophical point and that Council as a regulator could do whatever they want to, but the funds have to come from someplace. Currently, the funds come partially from the ratepayer and partially from.internally generated cash (stock, common equity in the company) and from long - termed cancelled debt. What the ratepayer is paying for is the carrying costs of those funds to build that particular project. Councilman Simmons pointed out that the company is almost 100 years old and the assets of the company approach close to $4 billion and in 1995 when all the plants are constructed, the company's assets could reach anywhere from $12 -$20 billion. At that time unless one is a stockholder of the company, one will be paying the rates requested while having participated over the years in purchasing assets for the company. Mr. Schaefer responded that this was a philosophical question and that reasonable men can differ on amounts used for construction. There has been a different number every year. The total package must be considered. Mayor Hutto reminded those in attendance that the City of Baytown's Public Hearing on the Proposed Budget was scheduled for this time and that hearing would commence upon conclusion of the hearing on the rate request of HUP. Councilman Philips stated that he appreciated Mr. Schaefer's response to his comments and that he had made those comments in the context that HUP is being denied the opportunity to put its managerial skills to use and contribute to an overall lower price by being responsible for the stewardship of the fuel and not just passing it through. The comment was meant to be constructive. In response to an inquiry from Council, Randy Strong, City Attorney, explained that under the Commission rules there is an allowance for construction work in progress and that could be anywhere from 60% to 100%. Mr. Schaefer stated that that again is an indication of what the financial community perceives concerning the health of HUP or any other company. The City works very diligently to maintain and improve its bond rating. Not too long ago HUP had its rating reduced from AAA to A+ by one company and A- by another, which translates into what the company must pay to borrow and what ratepayers will pay for electricity. Representative Polumbo recommended that if one percentage point represents $150,000,000, then grant about $40,000,000 which will put the company at 16% return on equity. There were no other persons present desiring to speak; therefore, Mayor Hutto declared the public hearing to be closed. 20826 -12 Minutes of the Regular Meeting - August 26, 1982 Consider Proposed Ordinance No. 30826 -1, Establishing Rates to be Charged by Houston Lighting and Power in the City of Baytown Council had been presented with a proposed ordinance which ordinance is based on the recommendation prepared by the City of Houston Public Service Department and is similar to the ordinance which was adopted by the City of Houston and the City of Pasadena, Other cities have adopted other ordinances. Any decision other than to adopt the rate proposed by HL&P will be appealed to the PUC for ultimate decision. It is important that the City of Baytown make its decision known so that decision will be part of the hearing before the PUC on rural rates. Councilman Philips stated that taking Representative Polumbo's feeling into account, he also had to look at the other side of the issue and that is the possibility of brown outs such as are experienced on the East coast. That would serve no one and the problem would only be escalated. Councilman Philips stated that the -City of Houston has dealt with this issue in depth and that the intention is to assert themselves and by joining with a group of cities in a common objective, a stronger front may be presented. On that basis, Councilman Philips moved to adopt the proposed ordinance; Councilman Simmons seconded the motion. In response to a request from Council, the City Attorney reviewed the process to this point and stated that the cities which have adopted rates other than presented by the City of Houston's expert witnesses will need to produce their own expert witnesses to justify their proposed rates. The City of Baytown would be in the same posture should Council determine to set a different rate, other than what was requested by HL&P or what was proposed by the City of Houston experts. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Fuller and Cannon Mayor Hutto Nays: None ORDINANCE NO. 3443 AN ORDINANCE RELATING TO RATES TO BE CHARGED BY HOUSTON LIGHTING & POWER FOR ELECTRIC UTILITY SERVICE WITHIN THE CORPORATE LIMITS OF THE CITY OF HOUSTON, TEXAS; CONTAINING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; PROVIDING FOR A REPEALER AND FOR SEVERABILITY; AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Hold Public Hearing on Proposed City of Baytown 1982 -83 Budget (7:00 p.m.) Mayor Hutto called the public hearing on the proposed City of Baytown 1982 -83 Budget to order. The Mayor announced that anyone present desiring to speak at the public hearing should register on the list provided in the hallway for that purpose. Mayor Hutto reminded those present that the hearing was not an adversary type hearing and that all who registered would be given ample opportunity to be heard. 20826 -13 Minutes of the Regular Meeting - August 26, 1982 The City Manager explained to those in attendance that the City Manager is required by Charter to present to City Council a proposed budget prior to the end of July. The proposed budget was presented and the City Council has expended several hours reviewing the budget, but no decisions have been made. The Administration has recommended a proposed total budget of $30,425,805 which is an increase over the current year of $3,313,567 or 12.22 %. The City's budget contains four main categories. The first is the General Fund which supports such departments as Fire, Police, Library, Parks and Recreation, Health, and others. The recommended budget for the general fund is approximately $1,500,000 greater than the current year or 10.04% increase. For Solid Waste the recommended expenditure is $1,822,000 for an increase of $370,000 or an increase of 25.51 %. The main reason for this size increase is that the city has adopted a new accounting system for the garage so that expenditures are charged out to the various departments. Another reason is that the costs for the - landfill has increased substantially. The Water Fund has increased by $1,012,000 or 13.82% and one of the reasons for this increase is that the city expects to be using more surface water than this year and the city will be placing in service the new sewage treatment plant which will use more electricity than the old plant and will have an operator on hand 24 hours a day. The General Obligation Interest and Sinking Fund (a fund to pay principal and interest on bonded indebtedness) has been increased by $405,000 or 14.50 %. The reason for this increase is the bonds which were sold last year. Another category is the Waterworks and Sanitary Sewer Interest and Sinking Fund. Since no revenue bonds were sold, there is no increase. The only significant change in the level of service that the city expects to provide next year as compared to this year is the new sewerage treatment plant. The city will have the same number of full -time employees as this year. The Administration has recommended a budget that will not require an increase in the tax rate nor any increase in water and sewer rates. An increase of $2.00 per month has been recommended for solid waste collection charges. Mr. Lanham ended his presentation by emphasizing that the total budget increase is only 12.22 %. Jocelyn Wesselhoft, 120 Caldwell, appeared as representative of the Baytown Senior Citizens Nutrition Center to request that Council consider increasing the amount to the nutrition center from $5,000 to $11,000. The reason for the requested increase is to fund the position of senior aide which had previously been funded through another program. Mrs. Wesselholft introduced, Carabell Hemingway, Senior Aide, responsible for food preparation and distribution, including the home bound. Home bound service is limited to 10 -12 persons and Ms. Hemingway is constantly revising the list for those who qualify. The nutrition center has a total budget of $30,000. Previously, the City of Baytown has contributed $5,000 for the center and $15,000 toward the operation of the van. 20826 -14 Minutes of the Regular Meeting - August 26, 1982 Mayor Hutto mentioned to Ms. Wesselhoft that the Adminis- tration had included the $11,000 in the proposed budget. Council commended Ms. Wesselhoft for the tremendous job being performed at the nutrition center. Mayor Hutto reminded those in attendance that the public hearing on revenue sharing was scheduled for 7:15 p.m. and would be conducted immediately following the close of the hearing on the proposed budget. V. T. Glass, Chairman of Baytown Library Advisory Board, stated that the Board and staff of Sterling Municipal Library would like to urge Council to adopt the proposed budget for Sterling Municipal Library. He mentioned that due to inflation, use of the library had increased along with costs to operate the library. The recommended level of service is 4 books per capita and presently the library does not have quite 2 books per capita. Therefore, Mr. Glass urged Council to accept the proposed budget for Sterling Municipal Library in order to meet the continuing needs of the citizens of Baytown. He also requested that Council consider the $30,000 request of the library for 1982 -83 Revenue Sharing Funds. David L. Black, First Vice President of Bay Area Heritage Society, appeared to request Council support of the Administration's recommendation that the request of the Society be moved from revenue sharing to the 1982 -83 proposed City of Baytown Budget. Mr. Black explained that the museum is open 20 hours a week with two full time employees. Recently, the museum lost one of its employees and it will be necessary to replace that person. The museum relies heavily on funding from the city since the only other means of funding is the annual tour which participation was down this past year and donations which are not as great during these economic times.. The museum is facing large utility bills due to the fact that the building where the museum is located is an old building and the fact hat the building must be maintained at a temperature of 72 - 780. In recent months, the museum has begun to be utilized for more than just preserving the past. Recently, the Goose Creek School has solicited aid from the museum to help with the indoctrination of 57 Third Grade teachers concerning Baytown history which will be taught this year. The museum has become known as an authority on Baytown and Bay area history. This year 2,500 persons registered as having visited the museum. Over 1,000 children have visited the poetry room which room was funded through a grant from Atlantic Richfield Corporation. Presently, the museum is working with Exxon on its anniversary celebration. Without the grant from the City of Baytown, none of this could be possible. There being no other persons present desiring to speak, Mayor Hutto declared the public hearing to be closed. Hold Public Hearing on Proposed Uses for Revenue Sharing Entitlement %IV Period Funding (7:15 p.m.) Mayor Hutto declared the public hearing on proposed uses for Revenue Sharing Entitlement %IV to be open. He mentioned that the same procedure would be utilized for this hearing. Those desiring to speak should sign the register 20826 -15 Minutes of the Regular Meeting - August 26, 1982 in the hallway. He urged those making presentations to be brief and he mentioned that all questions should be directed to him. A staff member then would be called upon to respond. Fritz Lanham, City Manager, explained that federal law requires that the Chief Administrator of the City hold a public hearing. After that hearing, the Chief Administrator must make recommendations as to the expenditure of said funds. The City Manager held a hearing on July 12. Based on notification that the City of Baytown will be receiving $620,266 in revenue sharing for Entitlement %IV, the City Manager made the following recommendations: 1. Slope Mower Replacement - $30,000 - These funds would be used to purchase a replacement for the 1968 International Slope Mower now in use at the Parks Department. The present mower is old and much down time is being experienced. 2. Tractor Replacement - $14,000 = These funds would be used for the replacement of the 1974 Case Tractor which has become non - economical to operate due to its age. 3. Swimming Pool Repairs - $9,500 - These monies would be used to replace electrical work in the Roseland filter house ($2,500); purchase four (4) Scott Air Packs for use at each pool when changing chlorine bottles ($4,000); and to repair an underground leak at the N.C. Foote pool ($3,000). 4. Sectional Meter Vaults & Meter Bypasses - $10,000 - These funds would cover the installation of these meter vaults and materials for meter bypasses and labor; which installations will provide the capabilities for testing, replacing, and repairing 2" meters or greater. 5. Walk Behind Striping Machine - $3,000 - These funds would provide for acquisition of a walk behind striping machine. This purchase would allow machine application of pavement markings which will decrease paint application and drying time. 6. Soil Study - $15,000 - These funds would provide for the hire of a geo technical firm to conduct soil studies in Baytown to provide the Inspection Department with necessary information for building foundations. 7. Street Reconstruction - $202,766 - These funds would be used to supplement the funds in the proposed 82 -83 budget for street reconstruction. 8. Emergency Vehicle - $9,000 - These funds would allow the Baytown Emergency Corps the funds to perform necessary repairs to their reserve vehicle, as well as allow for the purchase of two mobile radios and one walkie talkie. 20826 -16 Minutes of the Regular Meeting - August 26, 1982 9. Library Books - $30,000 - These funds would be used to purchase library books and materials to continue to expand the collection. 10. Nutrition Center - $15,000 - These funds would be used for the continuing operation of the nutrition van. 11. Police Radio System - $280,000 - These funds would be used to supplement the proposed funds in the 82 -83 budget to install Phase I of the radio system. 12. Audit - $2,000 - The funds would be used to pay for the audit of revenue sharing funds. Wendell Romans, 1507 Narcille, Chairman of Baytown Volunteer Five- Station Committee, appeared to request allocation of $3,700; $3,000 to purchase a four -wheel drive government surplus truck to be utilized to fight grass fires and $700 for Fire Prevention Education in Baytown. Mr. Romans stated that he conducts safety meetings and he has been paying for costs of handouts. Mayor Hutto inquired of Mr. Romans had contacted the county with regard to this $3,000 since most of these grass fires will be in the county. Mr. Romans indicated that two other volunteer departments had made the request of the county and were refused. Mr. Romans stated that the truck being requested could also be utilized for structural fires. Jocelyn Wesselhoft, 120 Caldwell, appeared to request continued funding of the van operation for the Baytown Senior Citizens Nutrition Center. Ms. Wesselhoft introduced the van driver, Ms. Lyn Smith. A six (6%) percent increase was granted to Ms. Smith this year. *Councilman Perry Simmons absent. Martha Mayo, President of Friends of Sterling Municipal Library, appeared to urge Council to give consideration to the library's request for $30,000 in revenue sharng allocation. Mrs. Mayo stated that during the past summer more than 2,000 children joined the library's summer reading program and because of this enthusiastic response, at times the library shelves were almost bare. Children often had to go home without a book or with a book below their reading level. Mrs. Mayo requested that Council consider this request which would benefit so many. Since there were no other persons present who indicated a desire to speak,, Mayor Hutto declared the public hearing to be closed. 20826 -17 Minutes of the Regular Meeting - August 26, 1982 Representative of U. S. Steel Will Appear A copy of the presentation made by U. S. Steel represen- tative, George Bradford is attached to the minutes as Attachment "C." Mayor Hutto stated after the presentation that he could appreciate U. S. Steel's position and inquired if U. S. Steel representatives had appeared before the Tax Appraisal Review Board. Mr. Bradford responded that the company had appeared before the Board. Councilman Cannon inquired what was the 1983 figure to which Mr. Lanham responded that the combination industrial district payment and tax payment would be $643,670; last year the figure was $561,342. In 1975, the company paid $295,000 for the first year of the seven -year contract. Mr. Bradford mentioned that on the back of the presentation he had included two charts which indicated a 44% drop in shipments from last year and how those shipments had begun to decline before then. The company has been making an effort to get the value down and the charts show how performance declines as value is decreased, but with the new resolution, the payment goes up approximately 15%. Councilman Philips inquired how many employees were employed in 1975 to which Mr. Bradford responded that approximately 1,000 persons were employed at that time and at present there are 1,400 employees. The reason for the larger number of employees at this time is that in 1975 the pipe mill was not in operation. Councilwoman Wilbanks stated that Council had not reviewed any evaluations yet and she felt that that information would be helpful to Council in making a determination. Mr. Lanham responded that that information would be made available to Council. Mr. Lanham mentioned that representatives of the company did accept the value that had been placed on the facility. Mr. Bradford stated that this was correct, but since that January 1 evaluation date, the company now sees that the company will be in a position of paying a tax that will not be corrected until next year. Councilman Cannon mentioned that Council had recently entered an industrial contract with Exxon and that company is having problems. If Council were to grant the relief requested to U. S. Steel, this would establish a precedent. Mr. Bradford pointed out that U. S. Steel was not talking of loss in profits, but much larger losses and because this is a contractual relationship, he felt that the contract could be amended if there were a meeting of the minds. Mayor Hutto stated that he would have no problem with placing an item in this regard on the next Council agenda, but he would have grave concerns about breaching the contract since he too felt that all the other industries would expect treatment equal to U. S. Steel. 20826 -18 Minutes of the Regular Meeting - August 26, 1982 Mayor Hutto stated that by looking at the request, he could see that if the request were to be granted, Council would be looking at a possible tax increase or budget adjustment. Councilman Philips explained that Council's immediate concern is the ripple effect - -would this same consideration have to be given across the board and he felt that would be the only equitable thing to do. To look at that the effect of that would mean a tremendous tax increase. Mayor Hutto pointed out that several of the industrial district contracts are up for renewal. Mr. Bradford stated that U. S. Steel would be glad to assist Council in its deliberation with any additional information that might be of help. Mayor Hutto stated that an item would be placed on the next agenda in this regard. Representatives of Naylor 'Industries, Inc. Will 'Appear There was no representative of Naylor Industries present. Consider Proposed Ordinance No. 20826 -2, Awarding Contract for 1982 Sanitary Sliplinink Phase II The Administration has failed to indicate to Council at the last meeting that anytime a bid on a public works project is awarded to anyone other than the low bidder, an opportunity must be provided for the low bidder to appear before Council. A letter was written to Naylor Industries indicating that if the company so desired, a representative could appear before Council. The company had indicated a desire to do so, but since that time, members of the City of Baytown Engineering Department and the city's consulting engineers met with representatives of Naylor Industries concerning the project that Naylor is performing at the West District. Naylor has stipulated that that project will be completed in a timely manner and that if awarded the contract for the 1982 Sanitary Sliplining Phase II, that contract will also be completed in a timely manner. There had been a disagreement concerning time which has been corrected to everyone's satisfaction; therefore, the Administration would like to change its recommendation and recommend that the contract be awarded to the low bidder, Naylor Industries, Inc. Councilman Cannon moved to adopt the ordinance, awarding contract for 1982 Sanitary Sliplining Phase II to Naylor Industries, Inc., Councilman Johnson seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Fuller and Cannon Mayor Hutto Nays: Councilwoman Wilbanks 20826 -19 Minutes of the Regular Meeting - August 26, 1982 ORDINANCE NO. 3444 AN ORDINANCE ACCEPTING THE BID OF NAYLOR, INDUSTRIES FOR THE 1982 SANITARY SEWER SLIPLINING PROJECT, PHASE II, AND AUTHORIZING THE CONTRACTING OF INDEBTEDNESS BY THE CITY FOR THE SUM OF ONE HUNDRED TWENTY SEVEN THOUSAND SIX HUNDRED SEVENTY FIVE & 50/100 ($127,675.50) DOLLARS WITH REGARD TO SUCH AGREEMENT; AND CONTAINING A REPEALING CLAUSE AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Consider Proposed Ordinance No. 20826 -3, Setting Date for Public Hearings on Proposed Annexation of West District Wastewater Plant and Rest Stop Council was provided with a map showing the locations of both this proposed annexation and the other. This particular annexation will consist of West District Wastewater Plant and rest stop. The reason that the rest stop is being included is that some of the problems being experienced at the plant may be due to the close proximity of the rest stop. Ultimately, all of this area will be in the city. The Admin- istration recommended that the public hearings be called on proposed annexation of West District Wastewater Plant and adjacent rest stop for September 9 at 5:30 p.m. on site and 7:00 p.m. in the Council Chamber. Two or three meetings ago, the Administration had mentioned Love's Truck Stop and the fact that that business had requested service. At that time, annexation could not be considered due to the 500 foot rule, but since that time, the Administration has received a request from Reading Buick for annexation and the BAWA water plant has been included so that the city can furnish police protection, plus the necessary portion of highway. The city will be responsible for a very small portion of Thompson upon finalization of annexation. The Administration recommended approval of both ordinances setting dates for public hearings. Councilman Fuller moved for the adoption of the ordinance calling a public hearing for annexation of West District Wastewater Treatment Plant and the adjacent rest stop. Councilman Philips inquired when the Council would need to look at impact of these annexations with regard to furnishing service. Mr. Lanham responded that service plans would be available for the hearings and that there was another item on the agenda that related to service for Love's Truck Stop. Councilman Philips stated that he felt that Council needed to be certain that whatever was done in this regard could stand alone and that no tax increase would be necessitated. Councilman Johnson seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Wilbanks, Fuller and Cannon Mayor Hutto Nays: None 20826 -20 Minutes of the Regular Meeting - August 26, 1982 ORDINANCE NO. 3445 AN ORDINANCE SETTING A DATE, TIME AND PLACE FOR THE PUBLIC HEARINGS ON THE PROPOSED ANNEXATION OF THE WEST DISTRICT WASTEWATER TREATMENT PLANT; DIRECTING THE PREPARATION OF A SERVICE PLAN; AUTHORIZING AND DIRECTING THE CITY CLERK TO PUBLISH NOTICE OF SUCH PUBLIC HEARINGS; AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Consider Proposed Ordinance No. 20826 -4, Setting Date for Public Hearings on Proposed Annexation of Baytown Area Water Authority Water Plant, Love's Truck Stop and Reading Buick The proposed ordinance sets the public hearings for 5:45 p.m. on site and 7:15 p.m. in the Council Chamber on the proposed annexation of Baytown Area Water Authority Water Plant, Love's Truck Stop and Reading Buick. Councilman Johnson moved for adoption of the ordinance; Councilman Cannon seconded the motion. The vote follows: Ayes: Council members Johnson, Wilbanks, Fuller and Cannon Mayor Hutto Nays: Councilman Philips ORDINANCE NO. 3446 AN ORDINANCE SETTING A DATE, TIME AND PLACE FOR THE PUBLIC HEARINGS ON THE PROPOSED ANNEXATION OF LOVE'S TRUCK STOP, READING BUICK, AND BAYTOWN AREA WATER AUTHORITY PROPERTY; DIRECTING THE PREPARATION OF A SERVICE PLAN; AUTHORIZING AND DIRECTING THE CITY CLERK TO PUBLISH NOTICE OF SUCH PUBLIC HEARINGS; AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Consider Greenwood Drive Drainage Stud Mr. Lanham explained that in order to drain the Greenwood Drive area, it is necessary to get water to Kilgore Road; therefore, the Administration would need permission to obtain appraisal for necessary easements. Norman Dykes, Director of Public Works /City Engineer, explained that in the 1979 budget, pipe was installed along Greenwood Drive which helped, but since that time some of the residents have expressed concerns with street flooding. Greenwood Drive was included on the drainage list for 1981 -82. What the engineering department is proposing is instead of placing more pipe behind the apartments that a direct route be taken from the flow area with an overflow pipe to the natural drainage area that exists. In order to do that work, easements are necessary. Funds are available in the current revenue sharing budget for this work. Councilman Philips moved to authorize the Administration to obtain appraisal for easements in the Greenwood Drive drainage area; Councilman Johnson seconded the motion. The vote follows: 20826 -21 Minutes of the Regular Meeting - August 26, 1982 Ayes: Council members Philips, Johnson, Wilbanks, Fuller and Cannon Mayor Hutto Nays: None Consider Proposed Ordinance No. 20826 -5, Authorizing Additional Easement Acquisition for the Baker Road /Bayway Drive Drainage Ditch When the city requested Harris County Flood Control assistance with part of the Baker Road /Bayway Drive drainage ditch, the county agreed with the understanding that the city would provide right of way. The flood control district has requested additional right of way in order that 120 feet of right of way can be provided. This is the minimum amount of right of way that is acceptable to flood control. The owner has agreed to a per square foot payment for additional right of way based on the previous appraisal which represents a total of $15,646.92. The Administration recommended approval of the ordinance. Exxon has agreed to give an easement along their property. Coucilman Johnson moved for adoption of the ordinance; Councilman Philips seconded the motion. In response to an inquiry from Council, Mr. Lanham stated that the flood control district has changed its requirements for right of way in order to get away from piping ditches and placing concrete liners. In order to properly maintain the ditch, flood control needs the additional right of way. The vote follows: Ayes: Council members Philips, Johnson, Wilbanks, Fuller and Cannon Mayor Hutto Nays: None ORDINANCE NO. 3447 AN ORDINANCE AUTHORIZING THE CITY ATTORNEY TO MAKE AN OFFER FOR AND IN BEHALF OF THE CITY OF BAYTOWN, FOR FIFTEEN THOUSAND SIX HUNDRED FORTY SIX & 92/100 ($15,646.92) DOLLARS TO THE OWNERS, OR OTHER PARTIES IN INTEREST FOR THE ACQUISITION OF CERTAIN INTERESTS IN A TRACT DESCRIBED HEREIN REQUIRED FOR A DRAINAGE EASEMENT; REQUIRING THAT SUCH OFFER BE ACCEPTED WITHIN FIFTEEN (15) DAYS; DIRECTING THE CITY ATTORNEY TO INSTITUTE CONDEMNATION PROCEEDINGS IN THE EVENT SUCH OFFER IS REFUSED; AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Consider Authorization to Advertise for Bids for Sanitary Sewer Main Under IH -10 at Thompson Road for Love's Truck Stop This matter was discussed at a previous meeting. Love's Truck Stop owner has requested that the city take bids for a 6 -inch sewer line to tie to the city's 21 -inch gravity sewer at the southwest corner of IH -10 and Thompson Road 20826 -22 Minutes of the Regular Meeting - August 22, 1982 in accordance with the requirements of the water and sanitary sewer extension policy. At the same time, the city would like permission to obtain an alternate bid of 10 -inch pipe. Oversizing would enable the city to serve a larger area. Estimated cost of the oversizing is $8,000 which the city would pay. Money is available in the water and sewer extension fund. The Administration recommended approval of the request. Councilman Fuller moved that the Administration be authorized to advertise for bids for a 6 -inch sanitary sewer main under IH -10 at Thompson Road for Love's Truck Stop and an alternate bid for 10 -inch sanitary sewer main under IH -10 at Thompson Road for Love's Truck Stop; Councilwoman Wilbanks seconded the �1 motion. The vote follows: Ayes: Council members Philips, Johnson, Wilbanks, Fuller and Cannon Mayor Hutto Nays: None Consider Authorization to Acquire Appraisal for Site for Water Tower *Councilman Simmons present. Council had received at a previous meeting a report from Bovay Engineering recommending a site at the intersection of Highway 146 and Spur 201 for the construction of a 2,000,000 gallon water tower. The Administration requested permission to acquire appraisal for the site. Councilman Johnson moved to authorize the Administration to proceed with acquiring an appraisal for a site at Highway 146 and Spur 201 to construct a 2,000,000 million water tower. Councilman Philips seconded the motion. Councilman Fuller pointed out that funds may be a-prime consideration, as well as optimal location. Mr. Lanham explained that the Administration really would like to begin with appraisals for this particular site since this is the optimum site with its location near existing 12 -inch water lines. If the city selects a site away from that area, then additional height must be built to the water tower. After appraisal on this site is received, Council can determine if other appraisals are necessary. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Fuller and Cannon Mayor Hutto Nays: None 20826 -23 Minutes of the Regular Meeting - August 26, 1982 Consider Specifications for Bank Depository Council had been furnished with specifications for bank depository based on flexible and non - flexible contracts. Contract lA would permit the City to designate one bank as the sole and single depository of the City, for the term of the contract. Under the terms of this contract, the City shall not maintain time or demand accounts in any bank other than the one specified in the contract. The exception here is bond interest and sinking fund accounts. Contract 1B would permit the City to designate multiple banks as depository banks of the City and maintain time deposit accounts in other depository banks. The City would require all depository banks to secure deposits under the same terms and conditions that are specified in the contract. The City would also be entitled to negotiate re- purchase agreements with the depository bank or with other depository banks located within the City limits for funds that will be invested for time periods of less than thirty (30) days. The Depository Bank would have the power to limit its participation in time deposits that exceed twelve (12) million at any one time. The Administration will need to take bids soon since the current depository contract expires in September. Council expressed concern with the legality of a flexible contract, but the City Attorney assured Council that, by statute, the city may designate more than one depository bank. The City of Houston has in excess of 30 Depository Banks. Council also expressed concern that with a flexible contract, Council would be placing control of where city funds are to be deposited with a staff member rather than Council. Councilman Cannon suggested that a report could be made to Council on a regular basis which would indicate bids taken on various deposits and where those deposits were made. Councilman Philips suggested that Council could take bids both ways and then make a decision after reviewing the bids. The City Attorney stated that he had not researched the question, but he could think of no reason to prevent the taking of bids on both contracts. Councilman Johnson moved to authorize the Administration to advertise for bids for a City Bank Depository Contract on the basis of Contract lA - Non Flexible. Councilman Fuller seconded the motion. The vote follows: Ayes: Council members Johnson, Simmons, Wilbanks and Fuller Mayor Hutto Nays: Council members Cannon and Philips 20826 -24 Minutes of the Regular Meeting - August 26, 1982 Consider Proposed Resolution No. 818, Opposing Federal Regulation of Cable Television The Administration has received correspondence from Texas Municipal League requesting Council action to oppose proposed federal legislation regarding federal regulation of cable television. The Administration recommended adoption of the resolution since the city will receive calls from dissatisfied customers even if the federal government assumes the responsibility. Besides that the Administration felt that the place for this responsibility was not Washington. Councilman Philips moved for adoption of the resolution; Councilman Johnson seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Fuller and Cannon Mayor Hutto Nays: None RESOLUTION NO. 818 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN OPPOSING FEDERAL LEGISLATION WHICH WOULD PREEMPT REGULATION OF CABLE TELEVISION AND PLACE REGULATION IN THE FEDERAL GOVERNMENT. Consent Agenda , In response to Council concerning auto fittings, Mr. Cote, Purchasing Agent, explained that the term auto fittings consists of things like nuts, bolts, cap screws, etc. All these items were itemized in the bid. Bids were taken on estimated quantities, but the city need only purchase the necessary quantities. Mr. Lanham commended the Purchasing Department on its efforts to bid more items. Council considered the Consent Agenda as follows: a. Proposed Ordinance No. 20826 -6, will award the bid for the annual Premix Rock Asphalt Contract. Three (3) bids were received. The low bid of $38,805 was submitted by Azrock Industries. We recommend the low bidder, Azrock Industries, be awarded this contract. b. Proposed Ordinance No. 20826 -7, will award the bid for the annual Hot Mix Asphalt Contract. Five companies were sent bid packets. One bid was received, Radcliff Materials, Inc. of Texas in the amount of $23,900. We recommend Radcliff Materials, Inc. of Texas be awarded this contract. 20826 -25 Minutes of the Regular Meeting - August 26, 1982 C. Proposed Ordinance No. 20826 -8, will award the bid for the annual auto fittings contract. Six (6) bids were received. Baytown Oil Sales submitted the low bid of $11,175.56. We recommend the low bidder, Baytown Oil Sales be awarded this contract. d. Proposed Ordinance No. 20826 -9, will award the annual masonry and construction materials contract. Six (6) bids were received. Lowe's of Baytown submitted the low bid of $8,632.07. We recommend the low bidder, Lowe's of Baytown be awarded this contract. e. Proposed Ordinance No. 20826 -10, will authorize Change Order No. 1 for the 1982 Street Improvement Program. This Change Order consists of adding sidewalk replacement to E. Wright. All of the sidewalk replacement is due to severely cracked or rolling sidewalk which is hazardous to the public. Included in the request is additional salvage /reuse existing base material, excavation of clay subgrade, & additional base material on Georgia, W. Republic, & Gresham Streets. This work will ensure that these streets have the required 8" of lime stabilized reconstructed base and that the asphalt mat fits properly with the gutter lip. In addition, this will enable the humps in the streets on Georgia at Virginia & Gresham just west of N. Main to be removed. Originally, the traffic islands that were included in the plans for concrete curb work were to be filled with cement stabilized sand and asphalt by City crews, but because of exceptional bid prices, I would like to request this be done by the contractor. Also, the addition of an island at Fleetwood and Memorial is included in the Change Order. The total amount of the Change Order is $21,719.50. The original contract amount is $524,503.20, thus bringing the adjusted contract amount to $546,222.70. The money is available in the Street Improvement account. We recommend approval of Proposed Ordinance No. 20826 -10. f. Proposed Ordinance No. 20826 -11, awards the contract for the rehabilitation work at 200 West Republic. Three (3) bids were received. Ed Shook Building Contractor, Inc. submitted the low bid of $7,295. We recommend the low bidder, Ed Shook Bldg. Contractor, Inc., be awarded this contract. 20826 -26 Minutes of the Regular Meeting - August 26, 1982 Councilman Johnson moved to adopt the Consent Agenda Items a through f; Councilman Simmons seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Fuller and Cannon Mayor Hutto Nays: None ORDINANCE NO. 3448 AN ORDINANCE ACCEPTING THE BID OF AZROCK INDUSTRIES, INC. FOR THE ANNUAL PREMIX ROCK ASPHALT CONTRACT AND AUTHORIZING THE PAYMENT BY THE CITY OF BAYTOWN OF THE SUM OF THIRTY EIGHT THOUSAND EIGHT HUNDRED FIVE & N01100 ($38,805.00) DOLLARS. (Proposed Ordinance No. 20826 -6) ORDINANCE NO. 3449 AN ORDINANCE ACCEPTING THE BID OF RADCLIFF MATERIALS, INC. OF TEXAS FOR THE ANNUAL HOT MIX ASPHALT CONTRACT AND AUTHORIZING THE PAYMENT BY THE CITY OF BAYTOWN OF THE SUM OF TWENTY THREE THOUSAND NINE HUNDRED & N01100 ($23,900,000) DOLLARS. (Proposed Ordinance No. 20826 -7) ORDINANCE NO. 3450 AN ORDINANCE ACCEPTING THE BID OF BAYTOWN OIL SALES FOR ANNUAL AUTO FITTINGS CONTRACT AND AUTHORIZING THE PAYMENT BY THE CITY OF BAYTOWN OF THE SUM OF ELEVEN THOUSAND ONE HUNDRED SEVENTY FIVE & 56/100 ($11,175.56) DOLLARS. (Proposed Ordinance No. 20826 -8) ORDINANCE NO. 3451 AN ORDINANCE ACCEPTING THE BID OF LOWE'S OF BAYTOWN FOR THE ANNUAL MASONRY AND CONSTRUCTION MATERIALS CONTRACT AND AUTHORIZING THE PAYMENT BY THE CITY OF BAYTOWN OF THE SUM OF EIGHT THOUSAND SIX HUNDRED THIRTY TWO & 07/100 ($8,632.07) DOLLARS. (Proposed Ordinance No. 20826 -9) ORDINANCE NO. 3452 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN AUTHORIZING CHANGE ORDER NO. 1 TO THE CONTRACT WITH SKRLA, INC. FOR THE CITY OF BAYTOWN 1982 STREET IMPROVEMENT PROGRAM. (Proposed Ordinance No. 20826 -10) ORDINANCE NO. 3453 AN ORDINANCE AWARDING THE CONTRACT FOR COMMUNITY DEVELOPMENT REHABILITATION PROJECT #81 -04 -07 TO ED SHOOK BUILDING CONTRACTOR, INC. FOR THE SUM OF SEVEN THOUSAND TWO HUNDRED NINETY FIVE & N01100 ($7,295.00) DOLLARS. (Proposed Ordinance No. 20826 -11) For tabulations, see Attachments "D" through "H." 20826 -27 Minutes of the Regular Meeting - August 26, 1982 Consider Appointments to Clean City Commission Councilman Fuller moved-to appoint Maurine Davis and E. J. Hoffmann to the Baytown-Clean City Commission; Council- woman Wilbanks seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Fuller and Cannon Mayor Hutto Nays: None Consider Appointment to Baytown Planning Commission Councilman Johnson moved to- appoint Moody Barker to the Baytown Planning Commission; Councilman Simmons seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Fuller and Cannon Mayor Hutto Nays: None Consider Appointment to Baytown Traffic Commission Councilman Johnson moved to appoint Buddy Bean to the Baytown Traffic Commission; Councilman Simmons seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Fuller and Cannon Mayor Hutto Nays: None Consider Appointments to BAWA Board Councilman Philips moved to appoint Knox T. Beavers to replace Harry Hartman on the Baytown Area Water Authority and reappoint Peter Buenz; Councilman Simmons seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Fuller and Cannon Mayor Hutto Nays: None Budget Work Session Council set a work session to discuss the proposed City of Baytown 1982 -83 Budget and Revenue Sharing Budget for Entitlement XIV for Wednesday, September 1, 1982 at 5:00 p.m. 20826 -28 Minutes of the Regular Meeting - August 26, 1982 Trip to Austin Mayor Hutto and Mr. Lanham will be in Austin on August 30 at the request of Texas Municipal League to discuss Civil Service proposal that Texas Municipal League is considering, along with the proposal of the City of Houston. H -GAC Councilwoman Wilbanks stated that she had asked that information concerning H -GAC services to Baytown be included in the packet to Council. Councilwoman Wilbanks reported that there had been an accident where a bus had driven' through the first floor wall of the H -GAC offices, but the staff was attempting to conduct business. Ad ourn There being no further business to be transacted, the meeting was adjourned. Eileen P. Hall, City Clerk Attachment "A" M E M O R A N D U MS August 26, 1982 TO: Fritz Lanham, City Manager FROM: Larry Patterson, Asst. City Manager SUBJECT: Brownwood Subdivision Report Jean Shepherd appeared at the Council Meeting of July 22, 19820 and reported several problems in the Brownwood Subdivision. Listed below is a summary of the actions the City has taken or will take in regards to these problems: 1. Drainage Problem In her appearance before Council, Mrs; Shepherd related several areas that are in need of drainage work. These areas include Mapleton off Crow, ditches off Bayshore, Shreck at Bayshore inside the Perimeter Road, and the distribution of drainage to the pumps. The 1981 -82 drainage budget contains six projects in the Brownwood Subdivision: They are as follows: 1. Crow Road - clean ditches & outfall ditch, reset pipe as necessary. 0 2. Cabaniss - clean ditches & outfall ditch, reset pipe as necessary. 3. Katherine - clean ditches & outfall ditch, reset pipe as necessary. 4. Milner Street clean ditches, reset pipes as necessary. 5. Brownwood Subdivision - an extensive study on connecting interior drainage system to perimeter road pumps with even distribution. 6. Brownwood Drive - construct dirt berm along road shoulder. (The berm is 95% complete. The asphalt section at the lower endis all that remains to be completed. Estimated completion time is two weeks.) The proposed 82 -83 drainage budget includes work to be done on Ridgeway, Bayshore, and Mapleton. Once these projects are complete, three streets in Brownwood (Martha, Harvey, and Queens Court) remain to be reviewed. The streets that have not been mentioned are Linwood, MacArthur; and Brownwood Drive. Linwood is a concrete street with curb and underground storm sewer system. MacArthur & Brownwood Drive have both been cleaned within the last li years. 2. Dumping Mrs. Shepherd indicated that individuals have been dumping debris and garbage at Brown Park and on streets that we have blockaded. The City will continue to remove litter, garbage and debris that is dumped illegally in areas. We have placed "No Dumping" signs along Brown Park. The City will continue to enforce violations of dumping; Mrs. Shepherd also-indicated that many people were carrying in dirt and other materials*to reclaim land, but stated in one place these materials had not been covered or packed. She believed that area was simply being used for dumping. The Inspection Department was called and did inspect the area. The materials found were dirt and concrete. Materials were placed there on a joint venture between several -home owners. 3. Park and Recreation Activities Mrs. Shepherd complained about people utilizing Brown Park and the-Y at Bayshore for recreation purposes. The purposes that were stated (fishing and sleeping through the night) represent no violation to City ordinances. If, however these activities disturb the peace or impede the normal flow of traffic, the Police Department will intercede to correct the situation. 4. Streets Mrs. Shepherd remarked that all the streets in Brownwood except two are in a state of deterioration and need repair. In regards to streets, as in the case with drainage projects, the City outlines projects each year so as to provide an on -going system of repairs and replacement. Two streets, Ridgeway and Pond Circle, are in the current reconstruction program. As in the case in past years, the Administration will evaluate streets throughout the entire City and recommend to the City Council those we feel are top priority to be worked on in that year. 5. Brown Park and Adjacent Area Mowing Airs. Shepherd stated the area across from Brown Park, where the City has filled, has-grown over with grass and.brush. The Parks Division will mow this area on its regular mowing schedule. After the first mowing we will spray it to kill the weeds and encourage the growth of the bermuda grass. 6. Water Mrs. Shepherd indicated the water lines in the-Brownwood Subdivision are in a deteriorated state-and persons who live along Milner can't drink the water. Mrs. Shepherd also stated there was a water leak on Mapleton near Crow Road. The City's approach to the replacement of water lines is consistent throughout the City. Lines are generally replaced at the time it becomes necessary to do so. Much of this is determined based upon the number and nature of problems we have with a given line or the age of the pipe. We recently replaced the line along Linwood Drive. Concerning the water's suitability for consumption on Milner, BAWA has conducted bacteriological studies on water taken from numerous residences on this street and other streets and found it safe for human consumption. (Eleven homes - 116, 110, 125, 118, 102, 10, 112, 121, and 198 and 201 Bayshore, and 121 Mapleton.) Of course, as with any surface water, there will be taste problems from time to time. The water leak on Mapleton has been repaired. 7. Sewer The City's approach to the repair and replacement of sewer lines is the same as with water lines. We feel our actions are consistent throughout the City. Also, the City has pending, §ince'.1980, an application to the EPA for a construction grant for the purpose of constructing a low pressure sewer system in the Brownwood Subdivision. The Administration recently sent a letter to the Texas Department of Water Resources seeking a clarification of the construction grant so we can determine how to proceed with this project. 8. Demolition of Structures Mrs. Shepherd mentioned the uncompleted demolition contracts on Bayshore (104, 130', 132, 134, 136, 138', and 140 N..'Bayshore). As you recall, the contract for that demolition project was let to :fir. Henry Dodd. Mr. Dodd did not.complete his contract. Bids were taken on August 24, 1982 (four (4) bids were received). These bids will be taken to the Urban Rehabilition Board on Monday, August 30, 1982, and brought to Council on September 9, 1982. The Urban Rehabilitation Board has been active in the Brownwood Subdivision. Listed below.are other homes it has taken action on: 108 West Bayshore Drive - Repairs-have been made and charges have been dropped.- 174 South Bayshore - Mr. Ed Shook has been released. from his contract by the Urban Rehabilitation Standards Board. We have started over by sending condemnation letters to the new owners. 170 South Bayshore - Action will be taken at next Urban Board meeting on demolition of house. 168 South Bayshore - A contract has been let to demolish the home. The contractor is about 75% complete. N a 188 South Bayshore - Contractor is finished and ready for final payment. 166 Cabaniss - Repairs have been made and charges have been dropped. 150 Mapleton - First 60 day letter has been sent to owners.. 156 Mapleton - Bid has been awarded to have house demolished. 117 Ridgeway - Repairs are being made at this time. With respect to occupied homes, it has not been our policy in the past to condemn these residences.and require the residents to vacate them. If in the future a home that appears unfit for occupancy becomes vacant, we would inspect it and if it were found to be so, we would take action to prohibit new occupants. LP:cs REQUEST FOR COUNCIL ACTION TO: Mayor via City Secretary Attachment "B" Agenda Item u SUBJECT: HOUSTON LIGHTING & POWER COMPANY a®` 6 Request for Rate Increase dated June 16, 1982. FROM (Department or other point of origin): Origination Date Agenda Date Public Service Department August 18, 1982 211 0 OR'S SIGNATURE: T : Council District affected: A • ALL For ad ' Tonal information co tact: Marsha Gardner Date and identification of prior authorizing . Phone: 658 -0343 'Council action: RECOMMENDATION: Grant increase in revenues to Houston Lighting & Power Company in the amount of $181,561,000 and approve rate design to effect increase. On June 16, 1982, Houston Lighting & Power Company ( "HL &P") filed a request with the City to increase its revenues from electric service by a total of $336 million on a system -wide basis. Prior to the proposed effective date of July 22, 1982, Council suspended the rates for 120 days until November 18, 1982. By way of Resolution No. 82 -26, Council authorized the *Public Service Department to coordinate with the other cities with original jurisdiction in HL &P's system in order to analyze and evaluate HL &P's application for a rate increase. Approximately 53 cities have joined together in the effort and have become known as the Coalition of Cities With Original Jurisdiction. The application as filed this. year is particularly complex in that HL &P is seeking recovery of $362 million for the conditional abandonment of the Allen's Creek Nuclear Project, and the Company plans to expend $1;136,506,000 in 1983. for the construction of the South Texas Nuclear Project (2 units), and the Limestone (2 units)' and Malakoff (2 units) lignite generating plants. This intensive construction program appears justified in order to maintain sufficient margins of . electrical power to meet the growth of customers in HL &P's 5,000 square mile service area. Presently there are approximately 1,141,440 customers in the total service area. However, after a thorough review of HL &P's rate filing package, the opinion of the Public Service Department is that HL &P's request for $336 million in additional revenue is excessive. It is our recommendation that Council grant HL &P a rate increase in the amount of $181,561,000, a 5.56% increase in rates. This represents 54% of its requested increase. The testimony of the Regulatory Affairs Division of the Public Service Department is attached hereto in support of our recommendation, as well as the report and recommendation of C.H. Guernsey & Company, . consultants retained by the City to study and evaluate the South Texas Nuclear Project. The following is a summary of the basis for the Public Service Department's recommendation: RATE BASE (Original Cost) Allen's Creek Nuclear Project The Public Service Department - recommends no recovery of the $362 million that HL &P has requested for abandonment or cancellation of the Allen's Creek Nuclear Project. In its rate filing package; the Company has not included the $362 million amount in the rate base; instead such - amount is included in an account entitled "Extraordinary Losses." HL &P requests the recovery of its $362 million investment (using the sum -of- the - years' digits method) over a ten -year period with .,-0, Dale Subject: Or i inalor's 2 page 8/18/82 HL&P RATE INCREASE MZr7tials of 6 a return on the unamortized balance of its investment less accumulated deferred taxes. However, 73% would be recovered during the five -year period between 1983 -1987. We recommend disallowance of $388 million actually attributable to the Project, including $324 million for plant and $64 million for nuclear fuel, whether categorized as an extraordinary loss or as an item in the rate base under "Construction Work In Progress ", as explained below. The reason for disallowance as an extraordinary loss is that HL&P in testimony filed with the City as a part of its application admits that no decision has been made by the Company as to whether, to cancel the plant. Such a decision is predicated on "appropriate action by the (Public Utility) Commission which provides for recovery of the investment in the Project through rates." Jordan, Vol. It p.6. In other words, HL&P is asking the City and ultimately the Public Utility Commission to indicate the amount of recovery they will be granted before they will decide whether or not to build the plant. Our position is that until there has been a formal cancellation of HL&P's certificate to build Allen`s Creek Nuclear Project ("Allen's Creek "), it is untimely and inappropriate to recover any funds for such cancellation. Because the recover of Allen's Creek is disallowed under "Extraordinary Losses ", the alternative for recouping funds would be to include it in rate base or "Construction Work In Progress ". However, because the Company has stated that they have virtually ceased investing funds in the Allen's Creek and do -not consider it to be economically feasible, such item is not properly included in rate base as Construction Work In Progress. Eliminating Allen's Creek from the case reduces the Company's $336 million rate increase request by more than $90 million. South Texas Nuclear Project Another major consideration for analysis and treatment is the South Texas Nuclear Project ( "STNP ").. HL&P recently filed with the City a report by Bechtel Power Corporation, the proposed new architect /engineer for the STNP, which indicates an estimated cost of $5.5 billion to complete the project. While blaming Nuclear Regulatory Commission changes in rules and requirements along with management deficiencies of Brown be Root, the former architect /engineer and contractor for STNP, the costs for the project have soared from estimates of $790 million to $5.5 billion. The PUC has ignored the reasons for such cost escalations in the past, but our opinion is that the burden upon the ratepayer to finance this project is rapidly becoming impermissible and it is extremely appropriate to address the situation at this time. While the Public Service Department had neither the time nor manpower to investigate all allegations of mismanagement in the operation of the Project, there likely will be a full inquiry as a result of the suit filed by HL&P against Brown be Root. We are recommending certain rate treatment based on the outcome of the court's findings. C.H. Guernsey be Company has made the following regommendations affecting both present and future rate treatment, in which we concur (see Blumenthal testimony): 1} Eliminate the equity portion of Allowance for Funds Used During Construction (" AFUDC") when there was no construction under way. This includes 12/1/79- 10/31/80; 12/1/81- 3/31/82 (end of test year). For any future rate case, we recommend the exclusion of the period from 3/31/82 until construction commences. The total dollars eliminated from the proposed rate base are $16,312,480. 2) Disallow accrual of the equity portion of AFUDC or additional money invested for any construction until there is Council review in a subsequent rate case: Date Subject: • at p or's 8/18/82 HL &P RATE INCREASE fy{ gat 3 Page 6 • of 3) Limit HL &P's total participation in the $5.5 b�lUon project to $1,692,460,000 with cost overruns being borne by the investor and not the ratepayer. (This amount excludes AFUDC and sales and property taxes.) 4) Disallow the cost of the lawsuit filed by HL &P against Brown & Root. 5) Credit any recovery in the lawsuit filed by HL &P against Brown & Root to the cost of the Project. 6) Disallow recovery from the ratepayer of any damages found to be payable by HL &P in the lawsuit filed by HL &P against Brown & Root. Other Major Adjustments Excluding Allen' s Creek, HL &P requests a rate base of $4,006,153,000. The Public Service __. Department recommends an original cost rate base of $3,953,996,000. Other primary differences between the two rate bases include: (1) elimination of $6,319,000 for certain cost -free capital; (2) elimination of $5,993,000 in deferred taxes; and (3) elimination of $22,954,000_for plant held for future use which includes the site for Allen's Creek. COST OF CAPITAL The average weighted cost of capital proposed by HL &P is 12.98%. The Public Service Department recommends 12.73% based on the following considerations: (See Wilton, Schedule I, for suggested method for determining cost of capital). Average Cost of Debt HL &P proposes 9.55 %. The-Public Service Department recommends 9.55 %. This percentage is based on the actual average cost of long -term debt for which the Company is presently obligated. Return on Equity HL &P has requested a 17.50% return on equity. The Public Service Department recommends 16.95%. The recommendation is based on an assessment of risk in raising capital for the Company's massive construction program. Although the Company has indicated that by recovering money for the cancellation of Allen's Creek Nuclear Project they would be able to bring the two lignite projects (4 units) on line one year earlier than originally anticipated, we have had to maintain the original schedule for the lignite plants in order to allow the Company enough internal cash to finance the other projects. By eliminating Allen's Creek as a means for recovery of funds, the Company's ability to generate cash internally is reduced. • Both Standard & Poor's Corporation and Moody's Investor Service, the two major securities rating agencies, have downgraded HL &P to A+ and A -1,• respectively, from a AA status because of the financial risk associated with the Company's construction program. Further downgrading would leas' higher interest cost to the ratepayer and limit the avaDable financial markets. Therefore, it is important to generate sufficient cash internally to enable the Company to finance the majority of its needs through stocks and bonds. Although the PUC has generally prescribed a parameter of 40% for internal cash generation, our recommendation allows the Company to recover approximately 35% through rates. A 16.95% return on equity is necessary to achieve the 35% parameter. The'recent decline in market interest rates should impact favorably upon the Company's ability to finance its capital needs for the next year. )ate Subject: {�� ator's 8/18/82 HL&P RATE INCREASElniiia{s 4 Page 6 of ADDITIONAL REVENUE REQUIREMENTS Based on invested capital (rate base) of $3,953,996,000, a rate of return of 12.73%, and revenue requirements of $3,529,921,000 (see Winkelman, Schedule I), HL&P has an additional revenue requirement of $181,561,000. OTHER ISSUES Street Lights HL &P has proposed s change in its street light tariff, which will greatly benefit the ratepayer and the public -at- large. The Company has effectively eliminated the present charge for installation, which has ranged from $350 -$850 per street light, payable by the customer. In addition, the Company has decreased the rates pertaining to high pressure sodium lights to make this efficient light more economical to use. These changes will facilitate the Department's master plan to install approximately 12,000 street lights within the City. Lead -lag Stud Pursuant to Council's request in its 1981 order concerning HL &P's 1981 rate application, the Company performed a lead -lag study through Arthur Anderson & Company to determine the actual working capital allowance which should be allowed in the rate base for the test year ending March 31, 1982. Working capital is required to fund the timing difference between the payment of operating costs and the receipt of customer revenue. The "formula approach" utilized presently by HL &P and the PUC adopts a 45 -day lag period for determining working capital needs, which represents 1/8 times operation and maintenance expenses, less any prepayments and materials /supplies charged to operation and maintenance. The purpose of the special lead -lag study was to determine the method most favorable to the ratepayer. The result is that the formula method in this case saves the ratepayer more than $2 million annually. Because the study itself costs approximately $70,000 annually, and the results are unfavorable to the ratepayer, we recommend the continuation of the 111/8 formula approach" until changes in HL &P's operational procedure indicate otherwise. Cogeneration In simple terms, cogeneration is the ability of a company to produce electricity as a by- product of its normal operation. Such electricity can be used for internal purposes or sold to someone else, e.g., HL &P. Because HL&P's massive construction program is directly related to customer demand, in particular the industrial customers, we recommend that HL &P be directed to evaluate and determine cogeneration potential in the Houston area and aggressively seek to develop power through such sources. If such opportunity and capability is developed, the result will be a reduced need for new plants and excessive capital expenditures, which would in turn stabilize the rates now paid by the (omsconsumer. Fuel Adjustment Clause The Public Service Department has received numerous complaints about the fuel adjustment clause on the customer's bill, which allows the pass - through of certain costs associated with the purchase of fuel by HL &P. Although we have had inadequate time for a thorough analysis of the appropriateness of the fuel adjustment clause for this proceeding, the Public Service Department intends to undertake such an analysis on behalf of the ratepayer. One reason for the clause is that it Date I Subject: 8/18/82 HL&P RATE INCREASE Q� ator's I Page kMals 5 of 6 helps to maintain the utility's bond ratings. There are arguments that the fuel adjustment clause discourages incentive on the part of the Company to vigorously and actively negotiate fuel contracts. On the other hand, if the fuel adjustment clause were to be incorporated into base rates (as expense . for purchases of fuel) there would necessarily be a working capital allowance included, too. Fluctuating fuel costs and market conditions are a primary consideration in whether such a clause is warranted. These factors and others will be reviewed and analyzed for recommendations in any subsequent rate case or for legislative action. Spring Creek Agreement In 1978, Utility Fuels, Inc. ( "UFI "), a coal supplier to HL&P (both companies are subsidiaries of Houston Industries, Inc.) contracted with Spring Creek Coal Mining Company for coal deliveries. The coal was intended to fire HL&P's Parish Units. However, because of slagging and fouling characteristics, the coal proved unsuitable for burning. There is a lawsuit pending on this issue. _ ..However, there is an $a per ton non - deliverable charge which has been paid by UFI. We recommend . that .this $8 per ton charge not be recoverable through HL&P's Fuel Adjustment Clause. RATE DESIGN -- - -- - Under our recommendation, the spread of -the increase in revenues to customer classes will not. differ proportionally from that proposed by HL&P. -Thus, 37% will be spread to the residential class, 41% to the commercial class, and 18% to the industrial class. The Public Service Department is proposing a change in the rate structure for the residential class in order to encourage conservation and provide a rate incentive to do so. This will result in levelizing bills all year round so that winter rates will increase, but summer rates will remain fairly constant for 750 -1500 Kwh users and increase for those customers using more than 1500 Kwh. Thus, there should be incentive to move toward the 750- 1500.category. The new "block" or "tier" is compared to the existing rate structure as indicated below: Present Rate Structure (a) - Customer charge of $6.00 per month, which includes 30 Kwh plus (b) Kwh charge for May through October of 3.8450 per Kwh over 30 Kwh. For bills of 750 Kwh or less, a charge of 2.3450 per Kwh over 30 Kwh. Kwh charge for November through April of 2.3450 per Kwh over 30 Kwh. plus (c) Fuel Adjustment. Charge Proposed Rate Structure (City) (a) Customer charge of $8.00 per month, which includes 30 Kwh. plus n-0 Description Fuel Purchased Power Operations and Maintenance Extraordinary Amortization Depreciation Other Taxes Interest on Customers Deposits Federal Income Taxes Return Revenue Requirement L ess Other Revenue Fuel Revenues Base Rate Revenue Less Test Period Base Rate Revenue Adjusted Base Rate Revenue Deficiency WINKELMANN SCIIEDULE - I 74,218 171560 91,778 1,779,830 204,175 1,984,005 $1,089,331 $489,738 $125790069 (1,243,371) $ 335,698 (2,621) 30,732 $(153,042) (1,095) $(154,137) 89,157 2,014,737 $1,426,027 (112441466) $ 181,5ri1 CITY OF HOUSTON HOUSTON LIGHTING & POWER COMPANY - 4540 REVENUE REQUIREMENT Test -!Year Company Company City City Per Books Adjustments Test Year Adjustments Test Year $1,673,251 $129,325 $1,802,576 $ 30,732 $1,833,308 130,764 95,139 225,903 0 225,903 330,850 55,871 386,721 X7,260) 379,461 3,044 91,112 94,156 (91,112) 3,044 117,376 16,257 133,633 (4,933) 128,700 155,178 39,016 194,194 (5,030) 1890164 0 1,225 1,225 0 1,225 178,222 118,223 29G,445 (30,673) 265,772 3541694 165,305 519,999 (161655) 5031344 $2,9439379 $711,473 $3,654,852 $(1241931) $31529,921 74,218 171560 91,778 1,779,830 204,175 1,984,005 $1,089,331 $489,738 $125790069 (1,243,371) $ 335,698 (2,621) 30,732 $(153,042) (1,095) $(154,137) 89,157 2,014,737 $1,426,027 (112441466) $ 181,5ri1 Date Subject: i ator's 8/18/82 HL�cP RATE INCREASE (b) An amount based on total Kwh consumed times the appropriate rate as follows: 30 Kwh — ?50 Kwh, a rate of 2.10150 per Kwh 30 Kwh — 1500 Kwh, a rate of 3.10150 per Kwh 1501 Kwh end over, a rate of 4.10150 per Kwh The thrust of the new middle tier based on average summer usage is to afford a price advantage for consumption up to 1500 Kwh. plus {c) Fuel Adjustment Clause. • SUMMARY The Public Service Department recommends that HLb�P be permitted to�roduce additional revenues in the amount of $181,561,000. This excludes recovery for the Allen's Creek Nuclear Project, and imposes cost limitations upon the South Texas Nuclear Project and makes appropriate deductions from rate base for South Texas Nuclear Project. ' Rate design treatment includes an additional tier to provide a price incentive for conservation among residential customers. MRG:BAB &-2014 WILTON SCHEDULE I PAGE 2 of 2 CITY OF HOUSTON HOUSTON LIGHTING be POWER COMPANY Weighted Average Cost of Capital (000's) For the Test Year ended March 31, 1982 Including ITC in the Capital Structure Adjusted Capitalization Percent Weighted as of of Total Average - March 31, 1982 • • Capitalization Cost Cost Long Term Debt $2,028,042 .4664 .0955 .0445 Preferred Stock 243,518 .0560 .0823 .0046 Common Equity 1,795,597 .4129 .1695 .0700 Unamortized ITC 281,393 .0647 .1273 .0082 Total - - $4,348,550 1.0 .1273 Attachment "C" MAYOR HUTTO, MEMBERS OF THE COUNCIL, MR. LANHAM, MR. STRONG; MY NAME IS GEORGE BRADFORD, I AM MANAGER OF TAXES, SOUTHERN AREA FOR UNITED STATES STEEL CORPORATION, AND I WOULD LIKE TO VISIT WITH YOU TONIGHT ABOUT THE DOMESTIC STEEL INDUSTRY, AND SPECIFICALLY TEXAS WORKS LOCATED NEAR HERE I14 CHAMBERS COUNTY. I AM SURE YOU ARE ALL AWARE OF THE DEVASTATING IMPACT THE CURRENT RECESSION IS HAVING ON THE STEEL AND AUTOMOBILE INDUSTRIES IN THIS COUNTRY, THE WALL STREET .JOURNAL RECENTLY REPORTED THAT THE BIG THREE AUTOMAKERS POSTED SHARPLY HIGHER EARNINGS IN THE 2ND QUARTER OF THIS YEAR OVER THE PREVIOUS YEAR. GENERAL MOTORS' NET, FOR EXAMPLE, ROSE 8.7% FROM A YEAR EARLIER TO $560 MILLION OR $1.82 A SHARE. EVEN WITH PRODUCTION AND SALES OFF, ANALYSTS STILL EXPECT GM TO REPORT A SLIM PROFIT; FORD TO POST A LOSS; AND CHRYSLER TO ABOUT BREAK EVEN. THE STEEL INDUSTRY, IN CONTRAST, IS HEMORRHAGING. IN THE 2ND QUARTER, THE EIGHT LARGEST STEELMAKERS HAD AN ESTIMATED PRETAX LOSS FROM STEEL OPERATIONS TOTALING UPWARDS OF $700 MILLION. HOWEVER, DUE TO SEVERAL LARGE NON- RECURRING GAINS WHICH INCLUDES THE SALE OF ASSETS, U.S. STEEL REPORTED A NET INCOME OF $4.3 MILLION OR 5 CENTS A SHARE. THAT SLIM PROFIT - A 97% PLUNGE FROM $167.6 MILLION OR $1.89 A SHARE A YEAR EARLIER - WAS DUE TO THESE LARGE NON- RECURRING GAINS AND EARNINGS FROM THE NEWLY ACQUIRED MARATHON OIL UNIT. BY CONTRAST, WITH SHIPMENTS THE LOWEST IN OVER 40 YEARS, w -2- OUR STEEL OPERATIONS ALONE HAD A SIGNIFICANT LOSS IN THE 2ND QUARTER, AND PROSPECTS FOR THE 3RD QUARTER, TRADITIONALLY OUR POOREST, APPARENT- LY WILL BE NO EXCEPTION THIS YEAR. AS THESE LOSSES CONTINUE TO MOUNT, WE AT U.S. STEEL MUST SEEK EVERY MEANS POSSIBLE IN TRYING TO REDUCE TAX COSTS WHICH DIRECTLY ADD TO THESE INCREDIBLE LOSSES. THAT BRINGS US TO THE PURPOSE OF MY ASKING YOU FOR A FEW MINUTES OF YOUR TIME HERE TONIGHT. FROM THE BEGINNING OF PRODUCTION IN 1970, TEXAS WORKS HAS BEEN PLAGUED WITH THE USUAL PROBLEMS OF THE START -UP AND BREAK -IN OF A NEW MILL. THROUGH ALL OF THIS, THE MANAGEMENT OF TEXAS WORKS 160 PLATE MILL HAS WORKED TO IMPROVE COST PERFORMANCE, IMPROVE PRODUCT- IVITY, AND FIGHT FOR ITS NECESSARY MARKET SHARE. ALL THE WHILE, FOREIGN PLATES HAVE BEEN AND CONTINUE TO BE ILLEGALLY DUMPED MONTHLY, IN NEARBY HOUSTON, IN LARGER TONNAGES AND AT LOWER PRICES THAN CAN BE HAD RIGHT HERE AT TEXAS WORKS, A MERE 30 MILES AWAY. FOR THE WEEK ENDING AUGUST 141 THE RAW STEEL OUTPUT IN THE U.S. WAS APPROXIMATELY 41% OF CAPABILITY, THE SECOND LOWEST WEEKLY PRO- DUCTION SINCE THE WEEK ENDING AUGUST 7, 19811 ACCORDING TO THE AMERICAN IRON AND STEEL INSTITUTE. DOMESTIC STEEL SHIPMENTS FOR 1982 ARE FORECAST AT ABOUT 67 MILLION TONS. WALTER CARTER, A STEEL ECONOMIST WITH DATA RESOURCES, INC., PREDICTS DOMESTIC SHIPMENTS WILL NOT REACH 80 MILLION TONS IN 1983, AND THAT RECOVERY WOULD ONLY EQUAL THE TONNAGE SHIPPED IN 1975's SEVERE RECESSION. THIS TRANS- LATES THAT IN 19831 STEELMAKERS WILL BE FIGHTING TO BREAK EVEN. -3- WHAT THIS ALSO MUST SURELY MEAN IS THAT IN 1983 SOME PRODUCERS WILL BE REFERRED TO IN THE PAST TENSE AS HAVING FOUGHT THE GOOD FIGHT AND JOINED THOSE OTHER MILLS WHICH CLOSED BEFORE THEM. IN 19751 TEXAS WORKS ENTERED INTO AN AGREEMENT WITH THE CITY OF BAYTOWN, WHERE U.S. STEEL AGREED TO PAY THE CITY AN IN- LIEU -OF PROP- ERTY TAX PAYMENT BASED ON VALUE BUT DETERMINED BY FORMULA - PER THE CONTRACT, IN CONSIDERATION OF THIS, THE CITY HAS AGREED NOT TO ANNEX OUR PLANT AND PROPERTY. IT WAS FURTHER AGREED THAT FOR THIS IN -LIEU- OF PAYMENT, THE CITY WOULD RESERVE THE RIGHT NOT TO BE REQUIRED TO FURNISH USSC: 1) SEWER OR WATER SERVICE; 2) POLICE PROTECTION; 3) FIRE PROTECTION; 4) ROAD AND STREET REPAIRS; AND 5) GARBAGE PICKUP. AND FOR THIS RIGHT NOT TO BE ANNEXED, AND FOR THIS RIGHT NOT TO MAKE ANY DEMANDS UPON THE CITY, WE HAVE PAID OVER THE LAST SEVEN (7) YEARS $4,153,678. TO THE BEST OF MY KNOWLEDGE, U.S. STEEL HAS MADE NO SPECIFIC REQUEST FOR AID OR ASSISTANCE DURING THIS PERIOD, AND THE REQUIRED ANNUAL PAYMENTS HAVE BEEN TIMELY PAID. WITHIN THIS SAME PERIOD OF TIME, TEXAS WORKS HAD SUBSTANTIAL LOSSES AND EMPLOYED AN AVERAGE OF 1300 EMPLOYEES, MANY OF WHOM LIVED IN BAYTOWN. FOR THE YEAR 1981, WE EMPLOYED APPROXIMATELY 2,000 EM- PLOYEES WITH AN ANNUAL PAYROLL OF MORE THAN $51 MILLION, AND WE PURCHASED GOODS AND SERVICES IN EXCESS OF $142 MILLION. OVER THE PAST SEVERAL MONTHS, WE HAVE BEEN WORKING WITH APPRAISAL COMPANIES REPRESENTING THE VARIOUS TAXING JURISDICTIONS IN AN ATTEMPT TO GET OUR PROPERTY VALUATIONS IN LINE WITH WHAT WE BELIEVE IS HAPPENING IN THE REAL WORLD. IN THIS ENDEAVOR, WE HAVE HAD VARYING DEGREES OF SUCCESS. -4- I AM SURE YOU CAN APPRECIATE THE ELUSIVE NATURE OF THE VALUATION OF LARGE INDUSTRIAL PLANTS, AND THE IMPACT SHARP DECREASES HAVE ON TAXING JURISDICTIONS. WE BELIEVE WE UNDERSTAND THE POLITICS OF THESE PROBLEMS AND HAVE TRIED TO LIVE WITHIN THE SYSTEM. FOR THE YEAR 1982, WE WERE ABLE TO ACHIEVE A REDUCTION IN THE CITY'S•VALUE FOR TEXAS WORKS OF $10 MILLION OR 3% OVER THE PRIOR YEAR. WE BELIEVE THAT IN THE PAST EIGHT MONTHS - SINCE THE JANUARY 1 VALUATION DATE - OUR PROPERTY HAS UNFORTUNATELY SUFFERED A STAG- GERING AMOUNT OF YET UNRECOGNIZED LOSS IN FAIR MARKET VALUE. ON APRIL 14, 1981, THIS COUNCIL PASSED RESOLUTION NO, 767 REPEALING RESOLUTION 514 WHICH, IN EFFECT, CHANGED THE FORMULA IN DE- TERMINING IN- LIEU -OF PROPERTY TAX PAYMENTS TO THE CITY. THE IMPACT OF THIS ON OUR PROPERTY RESULTS IN AN UNJUSTIFIED TAX BURDEN FROM OUR PERSPECTIVE. WHILE WE WORKED TO REDUCE VALUATIONS, AND WHILE OUR SHIPMENTS AT THIS PLANT HAVE DROPPED 44 %, OUR LOSSES ARE MOUNTING, AND UNEMPLOYMENT IS OVER 600 - OUR IN- LIEU -OF TAX PAY- MENT TO THE CITY WILL GO UP $82,000 OVER THE PREVIOUS YEAR. RESOLUTION NO. 767 IN ITS PREAMBLE STATES - AND WE AGREE - THAT "MANUFACTURING INDUSTRIES AS A WHOLE SHOULD COMPENSATE THE CITY OF BAYTOWN PROPORTIONATELY AS TO THEIR USE AND ENJOYMENT OF SUCH MUNICIPAL SERVICES." USSC IS CERTAINLY NOT EMBARRASSED BY ITS "QUID PRO QUO" WITH THE CITY IN THIS AGREEMENT. WE HAVE CONTRIBUTED TO THE GROWTH AND PROSPERITY OF THIS COMMUNITY FOR 12 YEARS. -5- WE HAVE PARTICIPATED IN THE INDUSTRIAL DISTRICT ARRANGEMENT WITH THE CITY FOR SEVEN YEARS. WE NOW ASK FOR YOUR HELP IN MAKING CONTINUED PARTICIPATION POSSIBLE. TONIGHT, I STAND BEFORE YOU WITH THE STEEL INDUSTRY'S VERY EXISTENCE THREATENED, AND ASK THAT YOU, AS THE GOVERNING BODY OF THIS COMMUNITY, AND AS CITIZENS CONCERNED ABOUT WHAT IS HAPPENING THROUGHOUT THIS COUNTRY TODAY, GRANT THIS PLANT TEMPORARY RELIEF FROM THE IN- LIEU -OF PROPERTY TAX PAYMENTS DETERMINED UNDER OUR CONTRACTUAL RELATIONSHIP WITH THE CITY OF BAYTOWN. BASED ON THE OUTLINED ECONOMIC CONDITIONS FOR OUR INDUSTRY, AND SPECIFICALLY THIS PLANT, WE REQUEST THAT THIS COUNCIL GRANT U.S. STEEL TEMPORARY RELIEF BY REDUCING OUR PAYMENT IN 1983 AND 1984 BACK TO THE AMOUNT PAID IN 1975 ($295,847). WE ARE REQUESTING THAT THE PAYMENTS FOR 1983 AND 1984 BE THE SAME AS THE 1975 PAYMENT BECAUSE: 1) TEXAS WORKS PRODUCTION LEVEL IN 1982 AND 1983 WILL BE COMPARABLE TO 1975'S PRODUCTION LEVEL; 2) CURRENTLY, IT APPEARS THAT THIS PLANT'S FINANCIAL PICTURE WILL BE SIMILAR TO 1975; 3) AN EMPLOYMENT LEVEL APPROXIMATING 1975; AND 4) THE PRESENT RECESSION IS FAR MORE SEVERE THAN THE 1975 RECESSION. I WOULD HOPE THAT YOU WOULD NOT ACT ON THIS REQUEST TONIGHT, BUT RATHER TAKE IT UNDER SERIOUS DELIBERATION AND CONSIDER THE FUTURE OF OVER 600 UNEMPLOYED LOCAL STEELWORKERS, AND 1,400 PRESENTLY EMPLOYED, WHO COULD BE JOINING THEIR RANKS. I WOULD LIKE FOR YOU TO CONSIDER THE COURAGEOUS OPPORTUNITY YOU HAVE TO SEND A MESSAGE TO THE INDUSTRIALIZED COMMUNITIES OF THIS w w go COUNTRY THAT BAYTOWN, WHILE ENJOYING ITS RELATIVE PROSPERITY IN A TIME OF HIGH UNEMPLOYMENT AND GREAT ECONOMIC SACRIFICE, IS WILLING TO MAKE A DEMONSTRATIVE SHOW OF ITS SUPPORT. SEND THE MESSAGE THAT roll THIS GOVERNMENT AND THIS COMMUNITY WOULD LIKE TO PLAY AN IMPORTANT ROLE IN DOING ITS PART TO PREVENT TEXAS WORKS FROM JOINING THE GROWING LIST OF CLOSED OR TEMPORARILY SHUT —DOWN STEEL MILLS IN THIS COUNTRY. WE HAVE PETITIONED THE FEDERAL GOVERNMENT FOR ENFORCEMENT OF CURRENT IMPORT LAWS AND ARE FIGHTING FOR COST EFFECTIVE ENVIRONMENTAL LEGISLATION. U.S. STEEL'S 16 CLOSINGS AND PARTIAL SHUT —DOWNS IN 1979 WERE DESIGNED TO STREAMLINE U.S. STEEL'S OPERATIONS TO FEWER PRODUCTS AND TO CUT OUT THE LESS PROFITABLE MILLS. U.S. STEEL'S CHAIRMAN, DAVID M. RODERICK, IS LEAVING THE DOOR OPEN TO STILL MORE SHUTDOWNS IF EFFICIENCY AND PROFITABILITY DO NOT PICK UP. U.S. STEEL AND THE UNITED STEEL WORKERS OF AMERICA SAY THAT MILL CLOSINGS MEAN INCREASED DEPENDENCE ON FOREIGN STEEL — WITH IMPORTS THIS YEAR AVERAGING ABOUT 23% OF DOMESTIC SUPPLY. UNLESS SOMETHING IS DONE ABOUT IMPORTS, WHEN THE NEXT SHORTAGE COMES, THE FOREIGN STEELMAKERS MIGHT BE ABLE TO SELL THEIR STEEL TO US AT ALMOST ANY PRICE. SOUND FAMILIAR? THAT'S HOW WE HANDED CONTROL OF OUR ENERGY DESTINY TO THE ARAB NATIONS. THE POINT IS THIS: THE STEEL INDUSTRY CAN DO CERTAIN THINGS FOR ITSELF, BUT IT WILL ALSO NEED A POLITICAL DECISION FROM THE AMERICAN PEOPLE. DOES THE U.S. WANT A STEEL INDUSTRY OR DOESN'T IT? V CJt C.1: V V V co CD V Co Me �a Thousand Tons W W 4 .P• 01 Cn CA CA V V 0:) 00 Co 0 al 0 cn 0 CA 0 cn 0 cn 0 CA 0 0 0 0 0 0 0 0 0 0 0 0 0 0 --I m x CD 0 CD w N 0 a� �9 CD y co 0 5 I M- Thousands of dollars w w .tom .0. w cn o) c) •4 •i 00 oc co o cn o cn o cn o cn o cn o cn o 0 0 0 0 0 0 0 0 0 0 0 0 0 O z m z -I C:) CA oW o = cn y C 4 j CD O z m z -I GROSS TOTAL I LESS DISC NET TOTA L GfrY OF 8AYTOWN _ _ I Lis ANNUAL HOT MIX ASPHALT CONTRACT BID TA T f ON 31 D: #828 -88 U V _ H LATE. .August 18, 1982 2 :00 P.M. Radcliff Materials H. Shell & Concrete ti; QTY DESCRIPTION :T UNIT EXTENDED U1111T EXTENDED UNJ x No o UNIT Ex-rEr4DED R r Ppir r eglaF �� .r r , c a r-- 1. 1.000 TONS ANNUAL HOT MIX ASPHALT CONTRACT, per specifications: ' $23.90 $23,900.00 1 No Bid TOTAL: $23,900.00 - I DELIVERY i AS REQUESTE . W ti � GROSS TOTAL I LESS DISC NET TOTA L Z z IL O Q V H V d 2 0 2 nl co �I � I LAi Q !am J O� W LD -� �ck n wQ La z- 0 Co W UN to Q x ° - coo coo N co co m ir'1 1 ° N V! 2 Y n v O C co cc 2 to ¢ O F O o0 0 o i•u N tA C o o ¢ to aui �a z N N ° N Gt H m .� -- H W CW% M M N O Z �( 4^ V1 lu CL C iC E O W a+ p v L Ln Z 0 w 1•- p cn R t �+ W %0 ? N .—.a 3 yr en ° Q m E w cl w � U _ c u J yi OL , CL a ' N 4 Z Y L W a ¢ O W H f- ° Z Q CL _o Q /� 0 Id $A G w a+ V x u z w w (� d — a u a - ¢ #A z z O VI O N1 ,a„ iu9wgov ; ;v �.Z J O� W LD -� • GTTY Or BA.YTOW N ANNUAL AUTO FITTINGS CONTRACT BID TABULATION 2 PAGE 1 OF 2 August 11, 1982 2:00 P.M. • KAR PRODUCTS INC. MELCO ELECTRIC CO. A.I.P. PRODUCTS TIFCO INDUSTRIES BOWMAN QTY DESCRIPTION .uN,r xTFNoea U,l,r aTFn,oF0 UNI x7rN -j5-r UN,r FxT[r {��'a u:r:i�rz��,.� ANNUAL AUTO FITTINGS CONTRACT, ' per specifications I Lot $13,633.59 I $40218.97 $11,615.26 � $12,935.74 I 1512,024.15 ` I I i TOTAL: '$13,633.59 i $11,615.26 $12,935.14 $12,024.15 *$41218.97 I � . ! DELIVERY 5 DAYS 5 DAYS W PRICES FIRM FOR 6 M0. PRICES FIRM FOR 4 M0. PRICES F RM FOR 5 M c U I ; *DOES NOT ME III) T ' SPECS BEC USG DID NOT ALL ITEMS. GROSS TOTAL LESS DISC. . NET T.. A L 4 C) Body Q r D c La c r, co N N' O� O i • rrl x J x x r A z Z c A r A c 0 m "i Z O N C'7 O Z ' a -o a c� m N O z o -� DC . -C F� D --C -o O� �z O r n A z z m a � r Q N fD -i co f7 O ' 7 N 1 • N - n O o z c r - m - m C �2� a 'io• m N m -n z C-) z - -- -- —n Z m 3 s� to — -I v • -- Q r D o _M m-I OI vVi *,n m m w D � m ° Q • � z 0 rn 0 X _2 n° b C _z v, �n 1ID �•a ' U �C u � til �I I �i t D c La c r, co N N' O� O i • rrl x J x x r A z Z c A r A c 0 m "i Z O N C'7 O Z ' a -o a c� m N O z o -� DC . -C F� D --C -o O� �z F1 TL ANNUAL MASONRY c CONSTRUCTION CONTRACT 310 '�? _9 ° -- )ATE: 'August 19, 1982 2 :00 P.M. PAGE 2 of 2 C17-Y Ur 13AYTOW PJ E31D TABULATION TEM QTY DESCRIPTION Urr:r ' `- x��..• .•p•�c I, �p � UNIT X ND D C' UNIT C' EXTEND A r- .UNIT XTEND£0 UNIT I b £NOED R r• p �� .1 i i ANNUAL MASONRY ARD CONSTRUCTION f I 1 CONTRACT, per specifications 1 CONTINUED: 1. 39 rollsi#15 Felt $9.69 j $377.91 ' 2. 529 sacksjMasonry Cement (70 lb, sack) $4.79 $2,533.91 I I 3. 263 sacks Portland Cement (94 lb. sack) $5.00 1 $1,315.00 ' I 4. ( 72 sacks Sackrete (80 lb, sack) $2.25 $162.00 I 5. 17 sacks Lime (50 lb. sack) $4.19 $71.23 6. 20,000 ft. #" Rebar Steel (20 ft. lengths) $2.90 $2,900,00 7. 1 7,800 ft. 5/8" Rebar Steel (20 ft. lengths) $3.69 $1,439.10 8. ! 40 roll Tie wire for rebar (3} lb. roll) $2.29 $91.60 i TOTAL: 1 $80890.75 DELIVERY: I 4 DAYS I i PRICES FIRM I I FOR 90 DAYS I 1 I t I , GKUSS 1 U 1/4 L LESS DISC ItIC`r TrITA I rL L• ANNUAL MASONRY 6 CONSTRUCTION CONTRACT p; #828 -90 T E- August 19, 1982 2:00 P.M. PAGE 1 of 2 -tv L01•!E' S � QTY DESCRIPTION .UNIT • Da,I'c 0 A (D v c� 4J 4J 44 39 rolls 529 sacks; 263 .sacks I 72 sacksi 17 sacks 20,000 ft. 7,800 ft. 40 rolls ANNUAL MASONRY 6 CONSTRUCTION CONTRACT, per specifications: #15 Felt Masonry Cement (70 lb. sack) Portland Cement (94 lb. sack) Sackrete (80 lb. sack) Lime (50 lb. sack) }" Rebar Steel (20 ft, lengths) 5/8" Rebar Steel (20 ft. lengths) Tie wire for rebar (3} lb. roll) TOTAL: DELIVE GROSS TOTAL LESS DISC NET TAL n r„lt c[> v CITY OF BAYTOW N 81D TABULATION DEER PARK LUMBER 184 LUMBER LADED U141T , EXTENDED UNi7 arc ojoirr Palm DRI!'F $9.85 $384.15 $9.95 1 $388.05 $9.28 $4.54. $2,401,66 $4,60 $2,433.40 $4.54 $4.95 $1,301,85 $5.15 i $1,354.45 $4.69 $2,59 i $186,48 $2,45, $176.40 $2,14 $1.99 )33.83 $3.75 $63.75 N/S $2,65 .$2,650.00 $2.75 $2,750.00 $2.64 $3.99 $1,556.10 $3.95 $1,540.50 $3.84 $2.95 $118.00 $2.75 $110.00 $2.84 $80632.07• $8,816.55 .2 DAYS J 1 DAY i PRICES FIRM !PRICES FIRM IFOR 90 DAYS IFOR 4 MONTHS WHITE SUPPLY :r: i. r;' $361.92 $11.071 $431.73 $2,401.66 $5.50 $2,909.50 $1,233.47 $5.95. $1,564.85 $154.08 $3.50: $252.00 $4.65. $79.05 $2,650.00. $3.711 $3,708.00 $1,497.60 $5.32 $2,075.80 $113.60 $3.10 $124.00 *$8,402.33 10 DAYS ;PRICES FIRM 'UNTIL NOTIFI- CATION OF PRICE INCREA E (30 DAYS) ..DID NOT BID ITEM #5 1$11,143-93 1 DAY PRICES FIRM FOR 60 DAYS WOODS u:I: T cZ $9.75 $380.25 $4.49 '.$2,375.21 $4.89 $1,286.07 $2.20 $158.40 $4.00 i $68.00 $2.80 • $2,800.00 $4.25 $1,530.00 $2.00 $80.00 ';$8,677.93 3 -4 DAYS PRICES FIR FOR 30 DAY N 7'17�L � ;� Rehabilihatlon Housing Protects 8 1 D� ,,,,B i {LPar_kane N�II . DATE August 5, 1981 B1D TABULATION ,� ITEM QTY DESCRIPTlO1V Ed Shook urv,r Bldg Cont,l�c.' Fxrrrvoa_o Prosper Bros. J.B.A. Const. ^EXf��rv�'15- x1�L�L� urr,�r r�rCrli� uNlr �xrErvr,�'o uN,r UNI PRICE Pl�I(' �£�.1LE_ �ft.lL� �1'f�1C� 1 Rehabilitation Housing Protect 7,295.00 7,400.00 9,196.00 8i -o4 —o7 . zoo w. Republic x a� U GROSS TOTAL LESS DISC. �. . �� NAT TnTa � n � IvFRY �