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HomeMy WebLinkAbout1974-06-03 Regular Meeting MINUTES - REGULAR MEETING OF THE LA PORTE CITY COMMISSION, LA PORTE, TEXAS JUNE 3, 1974 7:00 P. M. MEMBERS OF THE COMMISSION PRESENT: ~a~ror E. A. Thomas, Commissioners C. D. Christensen, I. J. Kibodeaux, A. Uel Price, and C. D. Boyle. MEMBERS OF THE COMMISSION ABSENT: None. OTgER C.LTY OFFICIALS PRESENT: Larry L. Broussard, Director of Finance; Margie Goyen, City Clerk; Knox Askins, City Attorney; Robert Cline, Director of Public Works; H. F. Freeman, Chief of Police. . PRESIDING: Mayor Thomas. + + + Invocation was offered by Commissioner Boyle. 1. ACCEPT BIDS FOR STEEL REFUSE CONTAINERS - Mr. Robert Cline, Director of Public Works, was called on to Fead two bids that were received on steel refuse containers. The bids were as follows: DUNCAN EQUIPMENT, INC. S2 two cu. yd. side loader container - per specifications - less casters - $159.50 ea. S3 three cu. yd. side loader container - per specifications - less casters - $180.50 ea. Casters - $35.00 per set. Delivery - 30 to 45 days after receipt of • purchase order. Terms: Net 20 days. ~ ~ i Regular Meeting 6/3/74 - continued • PAK-MOR 16 - 2 cubic yard Handi-Lift Containers, skid base, #13 lift assembly, #36A lid, in accordance with City's specifications, painted, F.O.B., La P¢~rte, Texas $288.00 ea. 16 - 3 cubic yard Handi-Lift Containers, skid base, #13 lift assembly, #36A lid, in accordance with City's specifications, painted, F.O.B. La Porte, Texas $350.00 ea. Quotation subject to lg cash discount if paid within 20 days €rom date of invoice. Delivery - Effective within approximately 90 days. Motion by Commissioner Kibodeaux, seconded by Commissioner Price, to accept the bids for tabulation. Motion carried by the following vote: AYES: Commissioners Christensen, Kibodeaux, . Price, and Boyle NAYS: None. + + + 2. APPROVAL OF MINUTES - REGULAR MEETING MAY 20, 1974 - AND SPECIAL MEETING MAY 23, 1974 - Motion by Commissioner Kibodeaux, and seconded by Commissioner Boyle to approve the minutes of the regular meeting of May 20, 1974, and the special meeting of May 23, 1974, with the following correction to the minutes of May 23, 1974: No. 1 - The vote was corrected to read: AYES: Commissioners Christensen and Kibodeaux. NAYS: Commissioners Price and Boyle. Mayor Thomas broke the tie by voting AYE. + + + • 3 • Regular Meeting 6/3/74 - continued 3. APPROVAL OF ACCOUNTS PAYABLE - Motion by Commissioner Kibodeaux, seconded by Commissioner Price to accept the accounts payable as listed, a copy of which is attached. Motion carried by the following vote: AYES: Commissioners Christensen, Kibodeaux, Price, and Boyle. NAYS: None + + + • 4. VISITORS WISHING TO ADDRESS THE COMMISSION - Mayor Thomas asked if the agenda had been posted according to law. The City Clerk affirmed. Mayor Thomas welcomed all people attending the meeting, and asked if anyone had signed in to address the Commission. Mr. Charles Martorell, 10026 Antram, La Porte, Texas, addressed the Commission regarding safety calendars, to benefit Municipal Police Association. He stated that the calendars would have photographs of local policemen with safety signs on them. These calendars would be distributed between local businesses, schools and police departments. He presented a copy of a calendar. Mayor Thomas told Mr. Martorell it would be taken under consideration. + + + 5,. ADMINISTER OATH OF OFFICE TO JUDGE WILLIAMSON - Mayor Thomas administered the Oath of Office to James B. Williamson as Judge of the Municipal Court. Pictures were taken. + + + 6. LEGAL OPINION ON MR. PRICE'S FORFEITURE OF OFFICE - Mayor Thomas called on Attorney Askins to read a legal opinion regarding Mr. Price's forfeiture of office. The legal opinion was read in its entirety, a copy of which is attached and ma~Ile a part of these minutes. ~J • • ~J Regular Meeting 6/3/74/ - continued Motion by Commissioner Christensen and seconded by Commissioner Kibodeaux to accept and abide by the legal opinion. Motion carried by the following vote: AYES: Commissioners Christensen, Kibodeaux, Price and Boyle. NAYS: None. + + + 7. ORDINANCE APPOINTING CITY CLERK -Ordinance No. 992, appointing City Clerk was read by Mayor Thomas. Motion by Commissioner Kibodeaux, seconded by Commissioner Christensen to adopt Ordinance No. 992 as read. The motion carried by the following vote: AYES: Commissioners Christensen, Kibodeaux, Price, and Boyle. NAYS: None. CAPTION: AN ORDINANCE APPOINTING A CITY CLERK FOR THE TERM ENDING • APRIL 30, 1976; AND PROVIDING AN EFFECTIVE DATE HEREOF. + + + 8. APPROVAL TO PAY FINAL ESTIMATE ON POLICE BUILDING A final pay estimate was presented by Busch, Hutchison & Associates, Inc., along with a letter of acceptance on additions to the Police Building. Motion by Commissioner Christensen, seconded by Commissioner Kibodeaux to accept the recommendation and make final payment when the car port leak and the door lock were corrected. Motion carried by the following vote: AYES: Commissioner Christensen, Kibodeaux, Price, and Boyle. NAYS: None. + + + • b~ ~J • • Regular Meeting 6/3/74 - continued 9. REQUEST AUTHORITY TO ADVERTISE FOR BIDS FOR A GRADALL - Mr. Robert Cline, Director of Public Works, requested authority to advertise for bids for a gradall. Motion by Commissioner Price and seconded by Commissioner Kibodeaux to advertise for and accept bids for a gradall, on July 1, 1974. Motion carried by the following vote: AYES: Commissioners Christensen, Kibodeaux, Price, and Boyle. NAYS: None. + + + ~J 10. AUTHORIZE ENGINEER TO PREPARE PLANS AND SUBMIT FOR BIDS TO REPLACE A PORTION OF THE WATER LINE ON BELFAST ROAD - Motion by Commissioner Kibodeaux and seconded by Commissioner Price to authorize the Engineer to get with the Director of Public Works and then prepare plans and submit for bids to replace a portion of the water line on Belfast Road. Driveways should be replaced, but not side- walks. Motion carried by the following vote: AYES: Commissioners Christensen, Kibodeaux, Price, and Boyle. NAYS: None. + + + 11. CONSIDER CONTRACT WITH ERNEST BROWN AS FISCAL AGENT FOR THE CITY - Mayor Thomas read a letter from Mr. Ernest Brown regarding contract with him as fiscal agent for the City. After some discussion as to the City's excellent credit rating due to having a fiscal agent, motion by Commissioner Kibodeaux, seconded by Commissioner Price to table this item for additional study and a meeting with Mr. Brown. Motion carried by the following vote: AYES: Commissioners Christensen, Kibodeaux, Price, and Boyle. NAYS: None. + + + • ~ • • Regular Meeting 6/3/74 - continued 12. AWARD BID FOR FLATBED TRUCK - Motion by Commissioner Christensen, seconded by Commissioner Kibodeaux to award the bid for a flatbed truck to the low bidder Jay Marks, in the amount of $7,439.00, availability verified. Motion carried by the following vote: AYES: Commissioners Christensen, Kibodeaux, Price, and Boyle. NAYS: None. + + + 13. CORRESPONDENCE - A. Mayor Thomas read a letter from Mr. Owlsey offering to represent the City in regard to the Southwestern Bell Telephone Company rate increase. B. Motion by Commissioner Kibodeaux and seconded by Commissioner Christensen to authorize the Mayor to send a letter to the City of Houston, on behalf of the City of La Porte, requesting the City of Houston to conduct a full public hearing before City Council on the rate increase application, with opportunity for all area cities to have representatives present who will be affected by this application. Motion carried by the following vote: AYES: Commissioners Christensen, Kibodeaux, Price and Boyle. NAYS: None. C. Mayor Thomas read a letter from Mr. Robert Cline requesting sewer line on Blackwell Street. The total cost for the project would be $2,100.00. The cost to the City would be $1,200.00. Motion by Commissioner Kibodeaux, seconded by Commissioner Christensen to install this line. Motion carried by the following vote: AYES: Commissioners Christensen, Kibodeaux, Price, and Boyle. NAYS: None. D. Mayor Thomas read a letter from Mayor Bill Black, Deer Park, reminding the City of a meeting to be held June 6, 1974, regarding the problems of solid waste. Commissioner Christensen will attend. + + + ti • • • Regular Meeting 6/3/74 - continued 14. DISCUSSION OF DEPARTMENT PROJECTS - Commissioner Christensen asked about the recycling of paper. The Director of Public Works informed him that approximately 40,000 pounds of paper had been picked up. The only only container is located at Mr. Q's. The price received for the paper will be the selling price for that day. B. Commissioner Boyle called on Mrs. Joyce Smith, from the audience, regarding her drainage problem. Mrs. Smith stated that she was here to thank the City for the culvert and road repair. C. Chief Freeman stated that there was a Criminal. Justice Counsel expert at the Police Station reviewing their records and the Commissioners and Mayor were welcomed to come and talk with him if they had any questions. + + + 15. EXECUTIVE SESSION WITH CITY ATTORNEY KNOX ASKINS TO DISCUSS PENDING LITIGATION - Motion by Commissioner Kibodeaux and seconded by Commissioner Price that the meeting be recessed for an executive session. Motion carried by the following vote: AYES: Commissioners Christensen, Kibodeaux, Price, and Boyle. NAYS: None. + + + 16. The meeting recessed for an executive session at 8:15 PM. 17. The meeting reconvned at 9:14 PM. + + + 18. ADJOURNMENT - Motion by Commissioner Kibodeaux, seconded by Commissioner Christensen that the meeting be adjourned. Motion carried by the following vote: AYES: Commissioners Christensen, Kibodeaux, Price, and Boyle. NAYS: None 1 • Regular Meeting 6/3/74 - continued The meeting of the City Commission adjourned at 9:15 PM. 0 Margie oyen, Cit Clerk • Passed and approved this the 17th day of June, 1974. E. A. Thomas, Mayor • ~ • • SCHEDULE OF ACCOUNTS PAYABLE Submitted for Approval at the June 3, 1974, Meeting, City Council, 7:00 PM Creditor Description Amount Admiral Linen Service Services $ 245.60 American Telephone f, Telegraph Co. Teletype Service 200.02 B f; F Maintenance Service Labor >', Material 222.00 Bay Can Rentals, Inc. Unit Rental 6.00 The A. G. Bailey Co. Parts 104.25 Jim Ball International Parts 429.91 Browning-Ferris Ind. SVC Container 60.00 C-T Drivesha.ft Co. Shifter Housing 14.98 Coastal A/C $ Htg. Co. Services 33.00 Thomas E. Cockrell Lomax Garbage pick-up 84.00 Compton's Flower Drum Plant 6.50 Cornelius Cleaners Laundry 4,22 Andrew B. Crate, Jr. Material ~ Labor - P.D. 75.00 Dixie Chemical Algi Kill 18.00 Dr. Nelson E. Dunn Physicals (10) 70.00 Ea~'ractor ~- Rotary Cutter 680.00 Gamon-Calmet Ind. Water meters 241.50 Gestetner Corp. Paper 37.40 Gulf Oil Gas 555.80 Jack Heard, Sheriff $ Court Review Costs 262.20 Houston Lighting ~, Power Service 2,028.13 Houston Natural Gas Services 68.28 Eugene Elovey Computer: Service 726.10 Houston Medical Gas $ Equip. Rentals 22.50 Hughes Office Supply Supplies 268.78 Hunter Chemicals, Inc. Wasp Spray 49.35 Ineeda Linen Service Services 4.70 Industrial Solvent Supplies 74.15 International Business Mach. Maintenance Agreement 27.95 B. P. Johnson Dump Trucks Sand 140.00 Jones Supply Materials 378.20 Kelly Tree Service Labor ~ Equip. 60.00 La Porte-Bayshore Chamber of Com. BBQ Tickets (7) 15.75 I,a P to--Bayshore Sun Bid Advertisements 46.90 Lay xas Co. Repairs 392.62 Lon ar Industries, Inc.? Shell ', 275.40 Lumus Baytown Dodge Parts 39.09 3h1 Business Products Copy paper 76,77 Mainland Tire Services 15.00 Dr. G. M. Miller Physical (1) 20.00 Pasadena Dodge Parts 7.82 Thomas B. Preston Tax Searches 725.00 Pfeiffer-Gambrell Materials 100.26 Bohan Company Meter Boxes Fa Supplies 526.56 Sa Inc. Sign Blanks 99.56 Tack Sollock Chrysler Plymouth Parts F, Labor 135.53 standard Coffee Service. Supplies 60.28 super X Drugs Camera 129.99 ' • ~• PAGE 2 A unts Payable ~3, 1974 CREDITOR Descri tion Amount Texas Fire $ Safety, Inc. Services $ 14.00 40 145 Texas Tlarir~e $ Ind. Supply Supplies . 41 77 Tifco Inc. Supplies . 25 11 Tom-Ken Printers File Cards Labor $ Repair . 15.00 Tucker Radiator T. L. Walker Bearing Co. Parts 16.00 90 40 West Chemical Chemicals . 28 402 White Supply Supplies . Supplies 149.68 Xerox C~ J 5 t • KN OX W. AS K I N S, J~. D. ATTORNEY AT LAW 122 S. BROApWAY P. O. BOX 1218 LA PORT E, TEXAS 77571 713 471-1886 May 30, 1974 The Honorable Mayor and City Commissioners City of La Porte P, 0. Box 1115 La Porte, Texas 77571 Gentlemen: I enclose herewith the following: My letter of May 8, 1974, addressed to Mr. Paul Strong, Attorney at Law; r Mr. Paul Strong's letter to me dated May 21, 1974; My letter of May 23, 1974, addressed to Mr. Paul Strong, enclosing letter of May 23, 1974, signed by Mr. A. Uel Price; Mr. Paul Strong's letter of May 29, 1974. Mr. Paul Strong has been City Attorney for several cities in Barris County, for many years. He is a recognized expert on municipal law. I have carefully reviewed his two opinion letters, and I believe that they correctly state the law as it applies to this situation. I therefore adopt.Mr. Strong's opinions, as expressed in these two letters, as my opinion to you as City Attorney of the City of La Porte, on this matter. Yours very truly, r^' Knox W. Askins City Attorney KWA:jm Enclosures r 1 L • • May 8,. ].9'74 rr1"i~S;[}7"P1~y ~t L~1W ~7I man ,7acinto ~uild.ing )1otl~Pton, Texas 77042 ~e~ar Mr. Strong: C~ c'an"z~:rlixrig our t:olephone conversation o:~ P~1y si, 1974., I repre~,r~-1t L.r~c~ Ci_'~~ or"". Ire z~o.r_te. :C wntl.ld a)?nrr~czrlt:c your, giving n~c ~Z ~•~r3.i~.-- L-~*ri opinion on the question of whether the following f-.r-~ct situ~t-- ~:ion ~,rould constitute a vinlati.on of Section 13, or ~~ny othAr ~H~cfi~ioPt, of the home Ruls Charter. of the City oA_ ]tea Porte, or of ~ir~zte I~~w on thc~ subject of conflict: of interest. t~~~:i:inuant Pa'r.k S71hc7~,vi.sion i~; situ.-~te~ within t)1n C"i.t:tr nF I,:i 1'n~-i••~. r,•rirl.o,Q )1~r_~wi.4:`1 co))y o'c an r~cfr.~ernc~nt hr`l.tar~rn i.)1c~ Ci.t:y s~f I„'1 )s.-~C~7:`i'('! i1,'f1C~ )~~.~)'"I'11011'f' hftr)C IY17T!lr~e; 11~fC+OC:i_,"19~.;1C)n, IT):C• , ~'t '~'f?;C:1'T 11'"'1-- `~i:~~('r''il: r.`01"i"1n1rr'1{'i.C)11, C~r3.4r'd Ma rrh t, 1971, f-ogc~t_i1c~.r. svi.i:l"l c~c}~i,,.P .,~' Z-)1c' mi.ril~tr~~: of the regular mneLin~' n"C t.lle City Conlm:i~:~;•i.rn of tli~ City of T,r~ 'Po;,;i.r dated llixgugt 16, 1971, tit; which t'l~e r~rJ,-r,,,._ me?nt: wa.s r~ll,pxov~,~d bV the City of La Forte . '~ lPi) ~ciu~il-~.7 v, i n 11p.r. i. i., 1973, M.r.. A, i1rJ_ )?.r. i.rr, c1,~.s ~1s~;a::~t-r~1 ~~ <~':i.~:~~ Cn;ami.s ~.i.ollnr_ of t.hc~ Cif:y o:~ Taa T'~r.i•.r-_-_. t~T~. ~'a^ir.r, Mary 1i~,r,,', P'r'~r.:i.~~i~,nv of t;he 1.".-lirmant P.nr.1- )Iams,~ 11~:i ,aa:%zt:i.on, I'nr:,~, r;irr~•„ ,-f~.r~~i.~x,y 1, 'i.~?70. FIA i.n r71.Fi0 a mc~ml~n~ of 3+:~3 Tir~~r<3 sal;' !i~i,rn_r~~•r,,. :> .~~~s1 .i.~a a.t:~ f71n.~ric~r, r'l.n~ in the 1r-Pt:1-.!.*L' oa)a-tcit:y L"t'cci.v~~',, ,n ,,-~1, , .. ,-,r l'Jh.O() )'~~' mnnth, r"in~ ~ is fu.r_ni. )1C'~3 )7y t-he J1a aoc_i.,-11~':~{.r)n r~i t-E, ~, n`).C1:-~1.I~? 'FY'uG)C 'foT' t'17.Ei 11~E3 in CL1Yryxng r>ll~ )1i.r C7u.t:iC"!'3 L4.~i ?1c`ti1-"l~J .. „ r,;.". f':P'ZC.`f! t-~11~ mn 111at hi.s c~tlt.les ~ i ~'trnnager i...rlc7.~.~~1,± t~C)1,l,i~r-±t. ~ ,r t?~' 111n rl~7.nl:r3n~nc~3 :~E?F? .f ~OTII }lr)mC' QWnt'S'!~ 01~ t°llf-) ^11)~r~ :1.tF i".X.'71.1 r ~ .lt i r Ii 711-"~1T1)-.r,n,-lnce fcc f.s ~. T~nrt: t1~ the rcnt•.r.ic1-•i.r~n<~ of t)1~ ~4,11)c7i~r:i~>i•~lF. :>r~ct i. r, t.h!~ sottres~: of izlr..nme is>r §~he 1','?oC:i?it^].On"s o)->^r;ri-.i..r?rt~i . ' ~a :9,~it~'i f:. i.riil, )1i? Y.'3 'C'r''J)"loT1 .l}.)lt' ~C1x~ l''c~pinCt t:llf! n~3plan ?.(~.C".`•+, ViIC!~1T1 P" ~f.t"r1: ~tnc1 !:?t1~;1°r7.T1C(?s3 {~O t11e suk>r~'~,Vl.ct].On P110[Jrr~ Vinci. C-'ra(~(?Ci.9 f"akin'] s~az-c~ of the ~PwiP~lrning pool whic)1 4:11e J1.asoea.aL-ion opcx:at.~~s i:o)~ (i,, •'~,s~:ir.;~~ni.s; and it is his t~cspons~.bi1_:i.i-~~~ to police tl:lc r9nfozc-~~,s,..'P~ t- oi: t33© ileec3 restr:tctions in the subdivision. • • Fvus-~ori, i@Xas • Page 2 May a, 1974 ~ exAClo~e with this letter al_ao, a cony o~ the dome Ria1.a Ct'~1°~~~~ ai' t".i~e C~.ty o~ ~a Porn®. 11~>~ your e~~r1y conveniAnr•c, x ~roul~~ ~~~~X~x~ac:i~ai.r~ your opinion on the r~uest:io,z ol? whni.he7r h17^ .-~k~~*re ~:~ .a~.r-,u fC~.ct ~ii:lls~t].oYl constitutes a con; J.irt c)~ a.ni:r:rest o~~ t.lr~. 1-'~'Trw: a£ Cninmissioner Tyrice, in kii.s duties a;~ a Ctt:y Comr~issio,-~.r. o~ ::he C~.t-y of ~a Porte. I~ any further informatihn is neFaclc*.~1, please a~~va.se. ~lxar~k you for y®ur kind assistance in this matter. CJtlrs very truly, ~~ nox W. Agkins ~~'r111, : 7 tct ' cr.c i(an. i`~t:~yor znd C3.ty Corr~nissioners C~.t:y a~ T~Z Parr,.e P . 0 . lea;; J. ]. 7. a Tic; P0~'~`~, 'J'fa7{r3S 7757]. r • • • PAUL STRONG ATTORNEY AT LAW S71 SAN JACINTC BYILDING HOUSTON, TEXAS 77002 CA. 7•D 127 May 21, 197k Knox W. Askins, P , f~ . ~3ox 1218 La Porte, Texas Lear Mr. Askins: Esquire 77571 • This is in reply to your letter of May 8, 1974, as Attorney for the City of La Porte, requesting the writer's opinion as to whether the fact situation therein set forth ;~aould constitute a violation of the Home Rule Charter of the City of La Porte, or of State law, on the subject of Conflict of Interest. Xou stated that Fairmont Park Subdivision is situa- ted within the City of La Forte, and enclosed an existing . contract between the City and the Fairmont Park Homes ~.ssocia.- tion, Inc., dated March 1, 1971, and continuing there~l'ter on a year to year basis, obligating the Association to fi.xrnish ~ar~c~c char garba~;~; and refu;~e pick up to Fairmont; providl..z~A~G, far ~x~.r.~- bage charges on the City's water and sewer bi11s to t~`:~~. res:Ll~cw~t~s of the Subdivision; requiring the City to remit to tke~:j.; Asscacl.°z1:,~c~n the total s.mount of f~nrb~ge charges collected by thEt ~~"..t,y !'rc7~i I.I,c r~;;~idents of the I+"aix~m~ont Parlc Subdiv~.sion, and ob1~.c~,.!'~~ix~;~; tl~a~ Clay to furnish and pay far disposal of garbage frar~~ ~'`'~ch SLib~liv:i- sion in the City's sanitary land fi11. ~! The Fairmont Park Homes Association is a ner~;r'~'arofit corporation, for the benefit of the residents of and ' ,~la:°olaerty :~.~~ the I~'airmont Park Subdivision,, of which Assaciatiari ~, . ~ A. LT, I':~Tl.ce ~z~,s been President since January 1, 1970, a member o ~;;`~ats ~c~s,~ ~l of .Directors, and its Manager, at a salary in the 1a~~, ~'~.r c~.~~:~.c~l.~,;~ ~,u~~ . cif X175.00 per month. fir. Price states he is respc~~~a~ ,r ~l.e fir kceepin~; the esplanades, vacant lots and entrances tea "~'pe Sub,33 vl.~ sign mowed and edged. He signed the garbage collect~~{~`~ a~re~~~zrl;~~bt between the City of La Porte and the Association, as ~,'ze latt~:t~' ~; President, on March 1, 1971. ~~ In April, 1973, Mr. Price was elected a Cit~f ~ommissiaz~.er of the City of La Porte . ~ ~ `. • • . • Knox W. Askins, Esq. -2- May 21, 1974 Article 988 of the Texas Civil Statutes provides, in part: "* * *. No member of the city council, or any other officer of the corporation, shall be di- rectly or indirectly interested in any work, business or contract, the expense, price or consideration of which is paid from the city treasury, * * *." In Givens vs. Butler County, 165 S.W.2d 651, decided by the Supreme ourt of M ssouri, t e sale of County land to the wife of the County Judge was held invalid, the Court declaring: "* * ~''At common law and generally under statutory enactment, it is now established beyond question that a contract made by an offi- cer of a municipality with himself, or in which he is interested, is contrary to public policy and tainted with illegality; and this rule applies whether such officer acts alone on behalf of the municipality, or as a member of aboard of (r~z~) council. * * * It is impossible to lay down :!~,y general rule defining the nature of the int;r~,1°,:3L of a municipal officer wh:Lch comes w.Lthiri t;}~ 1 operation of these principles. _An _ciirer,t; ~. indirect interest in the sub,~ect n-ia~~er ~_~,'"~~,_~ ~~ (.'i- c en o ain e con rac wi elg~a £~ ~ : , ; ~:` t ie interest e suc as 1-o s~'f e' c'£"~£Fie uc~E„~, 4~I ~-~nd rs C ~ .,,.n.,4...~ con uct o e o f'~Cer ether 3.n e~ma ix~ ~~~, the contrac or in i s performance . ~~~ ~~ ,~ s a Another case pointing out what interest } ~ ~ ~~,y m~{ke a transaction voidable is Yonkers Bus Co. vs. Ma1tb's ~~`'!',~?3 N.Y.S.?.d F~'j, where we find ~` ~ "'Interest' in a contract as used in Secon~, s ~ f; +=~,ss Cities Law, Sec . 19, has usually been con. ~~ `` ' " f as a financial or pecuniary interest. See o~~~" ~~~~~ of Van Kirk, U., in People ex rel. Crowe v. I'~4` ';~~ 8 Misc. 230, 151 N.Y.S. 835. The interest r ~~'~'~~~iot ~,. _~ however be one directl flowin -from the ~~,~~~'~~~~~:~ct; t~ ~ Y ., ~~.._....w. itse 'ee opinion of ooard, J., in Yeof~~ ',~~f~x rel. ~c i~enectady Illuminating Co. v. Board of ~~~~ ~' aisors of Schenectady County, 166 App.Div. 758, 7er~:', ~,+151 N.Y.S. 1012. The general welfare and pros erity ai I ;he com- pany of an off cer may a an n crest c~r, :n';~'-""^ • • • .Knox W. Askins, Esquire -3- May 21, 197+ The extent to which the meaning of "interest" is carried is illustrated in Bexar Count vs. Wentworth, 378 S.W. 2d 126, ~n.r.e.). Ploch, who was a County 'ommissioner of Bexar County, made an agreement with Shoup Voting Machine Co., making h:i.m sale representative of that Company in Texas, except for Bexar County. Bexar County and Shoup entered into a purchase agreement for 100 machines. Article 230 of the Texas Statutes prohibits direct or indirect interest by Commissioners in claims against the County. In holding the purchase invalid, the Court said: "Under all of the circumstances, it is pre- sumed that Ploch was not in a position to give to Bexar County his undivided loyalty and support in seeing to it that Bexar County got the very best deal possible in the purchase of 100 new voting machines, when he was at the same time obligated to use his best efforts to promote and exploit the sale of Shoup voting machines throughout the State, except in Bexar County. The fact that he was not to receive any money from such a sale in Bexar County would not prevent him from having an indirect interest in promoting and ex- plotting Shoup voting machines elsewhere in the State by a sale in Bexar County." Norrell vs. Judd, 37~+ S.W.2d 192, was decided by ~:;he Kent;uclcy Court o ppeals, an involves, as does the present c:~i,:, a "non- profit corporation", to-wit: Community Services, Inc., ~,vhich fur- nished cable television service to residents of Frank''~~'t, Kentucky. Suit was brought to void a contract between "Communit '~''~ind the Frankfort Municipal Housing Commission, a public cor~•~ `~y~ r.ion. Joe Pennington was the Acting Manager of the Housing Comn ~ ~.E i.an arr<1 was also a Director of "Community", the non-profit ca~" {~,•~~•tion, re- ceiving a fee for his duties as such. The Kentucky ~~ ',I ,;izte, :~~.mi.lar to Article 988, prohibits members of the Housing Comm ~,'`.on from s,cquiring any interest, direct or indirect, in any co ~ ~'s.ct far m~.- terials or services used in connection with any pro~je:'~,~~ In holding the contract void, the Court said: W,,~ "If the performance of Pennington's duties ,~~~ 6{ director of Community consist, in part, in the ~,~ ~~ ~~~°ur- ~lo ing of new subscribers for the television corpo;'!~ ~;_on then his interest in performing that duty woul<~;~~•s ~ such an ' interest' as would bring the case witr.~ ~; ~I:he prohibitions contained in KRS 80.080. In fact,~,R ; procurement of this agreement, if Pennington di',;, °r fact procure it, would have been the very thing'~;~ ~f, which he was being paid by Community. ~~~ •~, ~~ ~~ • Knox W. Askins, Esquire -~+- • May 21, 197+ There is no question of the capacity of the con- tracting parties to make the agreement in question, absent any direct or indirect interest on the part of Pennington. We do not feel that the fact that Community is a nonprofit en eavor ma es any erence in det_ ing e ques on o n eyes on ~ e par o enn r~ ~£on'"" • Sn the light of the foregoing authorities, the writer feels that there is a "conflict of interest" between Mr. Price's rep- resentation of the citizens of the-City of La Porte as a Commis- sioner member of the City Council on the one hand, and, on the other hand, his representation as President Manager and Director of the r'~airmont Park Homes Association with regard to its gar- bage disposal contract with the City of La Porte. S:s Ver truly yours, ~-~ i ~ ~r _... Paul Strong C • • May 23, 1974 t1r°..Pattl :~t:rong 1'ti,:t:ori;cy at Law 571 a<~n Jacinto I3izilding irouston, Texas 77002 iJc~ar Nir. Strong: • LPL Porte City Commissioner. A. Uel Prim has furn.ishc~ri me with .~ ropy oi' his letter oy resignation to rairmont Parl; ftomc~s Asso- riai:ion. z am enclosing a copy of this letter herewith. Tn your. ronsicieration of this m:tttcr, I would al,prec-t.~t:c~ ya~tr • cons.iclcring w11G't}1t?r Soctioi~ 13 and/or Scrti.on 119 o~E tlt~~ t-c,ntc~ r„1.~ Gila.r. ter o:F the Cit-.y of La nort~ apnl..ic^, ,~,ncl, i f {;~>, ~•~h~ 1. f'1-~C;C''t: r1z'. Prig's .rt~sic7nat:i-on wc7ltl~ l~;~vr nn t-h~ s~.i~~~•-~t :i.cr~. l'.:~ r. t:i~~cil.ar. l.~-, t tvotal.c~ 13.kr t:n h,-~vc yc,itr at~tn.i ors fi~~ t ~ ~ ~ 1,,, t.1,,,,- i~:` i"~lrl: ~',7.tt1%11~~Qn n~,?V].Otl:;l.y :~rc'14,f:<1 1:0 ~~OLt WUlllll C'~~!' I ~ I'~'r .. t~~~i~uze o~£ offirc or no~it:ion by Mr. 1'ri.rc~ tan~).or t~ii ~,_~~~ c,f t~l,~.•~-~ `;c~ct:.xari^ of t?ie Tiornr, I~iale Charter., ancl, wheth~ar his ;'~~I~,~~' ^c-rtt~n+: :,•c:;i~nat3.on from T'nirrnont ~'lrlt Ttomes ns~or.:i~z.i::ion wot Iil~~~i~,~+v~~ ;,r~ h~,,'~ri_nR On the Rv.cst.ic~n. ~,~~~~,; i f i ~~ t,i a: would 1%1:~± ~o present an opinion to the La Porte c ~~ ~ ~' CaniTni ,_ . ~'i.on 7t i.ts nc;:t regular mec,ting of Monday, Ju~ic~ 3, `' ~~ i-,n~l tmuld ~~rprrciate hearing from you by th<-~t: da~:c. '~ ~'~~ ~.~~~ '~'it,~nlc you for your kind assistance in this matter. ~i ~~(a Yours vary t:rtiily, <~ ~ ~~ Knox `rel. Asking ;.;'711: ill ec: tton. r,ayor ~~end City Commissioners • City oL La Forte t?. O. I3ox 1115 ;' L~1 Por~:e, Texas 77571 • Fairmont Park Homes Association, Inc. Po87 OPFIC6 BOX 1192 • LA PORTE, TEXAS 77571 ' ,. ;~ ~ _ .. b - ~ .. 4:. ,,. ,~.. ~.e.,. .~~._,..os~ ~ ...,. ~Y 23 ~ 1914 • To: The Directors of Fairmont Park domes Aa3ooiation, Inc. Gentlem~nt It is with ~sinoere ro~;reta that I must inform you th~~t I find it neces:~ury for rno to reai~n Iny position as a Direotor of Fr~irmolit Park Isomes Asaooiation, Iria. due to porsonAl reasons. It twill be effeotivb with the olose of Uu:~ine:~s Play 31, 1y74. Yours truly, A. U. P.'~1 Cr r I • i 1 ;~~i', j ( i t i~'`li ~~ ;, • • PAUL STRONG ATTORNEY AT LAW 871. SAN JACINTO BUILDING HOUSTON, TEXAS 77002 CA. 7.8127 May 29, 1974 • Knox W. Askins, Esquire ' P. 0. Box 1218 La Porte, Texas 77571 Dear Mr. Askins: This is in reply to your letter o,f May 23rd, concerning the application of Sections 13 and 119 of the La Porte City Charter to Mr, Price in the light of the facts set out in your letters. In the case of State vs. McAllister, 365 S.W. 2d 696, where the ouster of seven City Councilmen of San An- tonio was under consideration, the Court said: "State ex rel. Edwards v. Reyna, 160 Tex. ~0~, 333 S.W.2d 832, shows that ouster laws are penal in character and must be strictly construed asthou h definin a crime and ~~t scri ing punishmen tae ex re iclrnu l Alcorn, 78 Tex. 387, 1~+ S.W. 663." ,„ The only part of Charter applicable to Mr. 13 of the La Por situation reads:. "* * * Commissioners * * * shall not~be terested in the profits of any contract, work or service for the municipality * * • Section 119 of tti ;'`' • ;;~~ The pertinent City Charter are• ~' i~ ~! "No member of the Commission * * * shall ~ ~~~i a financial interest, direct or indirect> ~t ~~~ in any contract, or in the sale to the ",,~~, * * * of any * * * service * * *." 1~ ~~~_~ It should be remembered that the contract;~~°~~ Fairmont Park Homes Association, Inc., was execut;,~'1 ~,;~ ;~, I ~ ~~~ ~.~:~ ~,~.ty rte the ~;h 1, 1971, i C~ J • ~• Knox W. Askins, Esq. ..2 r May 29, 1974 two years before Mr. Price was elected as a City Comr~~issioner. Other than his employment by the Associatic~ there is no evidence that he received any "profits" under '""~1e con- tract between the City and the Association and there ~i_s, of course, no evidence that he had any financial inter~~, in the contract with the City for the garbage services. ~~~ In the case of Cr stal City vs. Del Monte Cc:r oratl.on 463 Fed.2d 976, the United ates Circui ourt of {1~~peals h~~d before it a contract between the City and the Corporation not to annex the latter. One of the employees of the Corporation was also a member of the City Council and voted for the con- tract on two occasions. The Court, in disposing of the case, said: "No authority is cited for the proposition that the mere fact that an officer of a city is also an employee of a corporation with which the city has contracted is sufficient of itself to i.rlvali- date the contract." The fact that the Association is a non-pry: tion emphasizes the lack of showing of any "profit;' interest" on the part of Mr. Price. From the foregoing, it is the writer's o~ neither Article 13 nor Article 119 of the La Port<! applicable and, consequently, Mr. Price has not fc:~ position as a City Commissioner. S:s Very truly yours, ,,L ~--- 1 Paul Strong ~~ orpora- ~~f'inanci<a.1 that ~ ~:r is ~.t his