HomeMy WebLinkAboutCouncil.Minutes.12-21-1992.Regular 4��
Proceedings of the City Council, City of Cape Girardeau, Mo.
Re�ular $ession December 21 19 92
SI.I,9975
REGULAR SESSION - DECII��IBER 21, 1992
Council convened in regular session on Monday, December 21, 1992, at 7:30 p.m. with
Mayor Francis E. Rhodes presiding and Council Members Melvin Gateley, Melvin
Kasten, David Limbaugh, Al Spradli.ng III, and Mary Wulfers present.
Prior to the regular session, Council convened in executive session for purposes of
discussing litigation and acquisition of real estate upon Mr. Spradling's motion, Dr.
Kasten's second, and the following vote: Ayes, Gateley, Kasten, Limbaugh, Rhodes,
Spradling, Wulfers. Nays, none.
The Invocation was presented by Dr. Kenneth Johnson, Retired District Superintendent,
United Methodist Church, and the Pledge of Allegiance was recited.
The minutes from the December 7, 1992, Regular and F�cecutive Sessions were approved
upon Mr. Limbaugh's motion, Ms. Wulfers' second, and the following vote: Ayes,
Gateley, Kasten, Limbaugh, Rhodes, Spradling, Wulfers. Nays, none.
Mayor Rhodes presented a plaque to Mr. Cleo Mabrey in appreciation for his eight years
of service on the Planning and Zoning Commission.
Mr. Craig Felzein appeared before the Council on behalf of Southwestern Bell to
explain the phone company's Telefuture II proposal. A copy of the information
presented is attached hereto and made a part of these minutes (E�ibit A). He explained
that this is a$153.6 million proposal which would provide lifeline service for individuals
who meet Federal poverty guidelines and would also reduce long distance calls within
the area code by four percent. There would also be a new network modemization
program whereby a fiber optic cable would connect all high schools, colleges and
hospitals to allow for new, innovative ways to do business in the area and help to
promote long distance learning. Mr. Felzein asked the Council to take the time to
review the information and consider different levels of support the City could offer to
Southwestern Bell either through resolution, verbal agreement, or the legal intervention
process.
Mayor Rhodes stated that if anyone was present at the meeting to discuss riverboat
gambling, it will be on the January 4, 1992, City Council agenda for discussion. Mr.
Gateley requested that those present be permitted to make comments.
Dr. Kenneth Johnson, Retired District Superintendent of the United Methodist Church,
appeared before the Council to express his concern regarding riverboat gambling in Cape
Girardeau. He stated that there are many in the community who feel this is a business;
however, he feels that gambling takes from the community and that the moral side of the
issue needs to be considered as well as the load it would place on the legal force. He
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urged the Council to consider the issue and to not take steps at the direction of those
wanting riverboat gambling in Cape Girardeau.
Mr. Harry Rediger, Chairman of the Board of Directors of the Cape Girardeau
Chamber of Commerce, appeared before the Council to read a prepared statement of
behalf of the Board of Directors of the Chamber of Commerce regarding the charter
amendment that was approved at the November election. The Board feels the City
should use the experience of the original Charter Commission, using as many of those
that are willing and able to serve, as a base for a committee to completely review the
e�sting City Charter for necessary revisions and updates. The Board proposed that this
original Charter Commission be supplemented with individuals appointed by the Chamber
and the I.eague of Women Voters to also serve on the committee.
Ms. Wulfers questioned whether the Board was proposing that a charter amendment
committee set by the Council should be not formed and to reappoint the original Charter
Committee members. The Mayor explained that 14 additional people had submitted
applications for the charter amendment committee and the Council agreed in study
session to appoint to the committee all those who had applied in addition to those already
appointed to the committee. !
Mr. Limbaugh stated he viewed that the initial establishment of the charter amendment
committee was limited in scope to only look into solving the technical problems of
implementing the zone representation amendment and making it consistent with the
current City Charter. He supported the idea to form a separate committee to review the
entire City Charter and using the original Charter Commission members to do that. He
questioned whether it would be feasible to have two committees working together, but
that both would be advisory in nature, and any recommendations would have to go
through the Council and be approved by the voters. Discussion followed regarding these
charter review committees.
Mr. Rediger stated that 9 of the original 13 Charter Committee members are availalbe
to serve and so far six had been contacted and are willing to serve on a committee to
review the City Charter. He stated the Chamber of Commerce, along with the League
of Women Voters, was offering to take the lead in forming a committee with the base
of the original Charter Commission members and offering to make appointments to this
charter committee. After discussion Mayor Rhodes questioned whether the City Council
should make the appointments instead of the Chamber of Commerce. Warren Wells,
City Attorney, stated that the Council can delegate that responsibility to the Chamber of
Commerce.
Mr. David Barklage appeared before the Council and presented a written statement to
the Council. A copy of the statement presented is attached hereto and made a part of
these minutes (Exhibit B). He questioned whether the Chamber of Commerce would
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Re�ular $esslOn December 21 1992
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go ahead and look at the charter and submit their provisions separately if the Council
went ahead and appointed their own committee.
Ms. Lynette Berry appeared before the Council to clarify issues surrounding the recall
petition efforts. She asked the Council to consider the issues she raised at the December
7, 1992, City Council meeting regarding solid waste issues. She stated that according
to the City Charter any council member can be recalled for any reason and that she will
continue to pursue the efforts of her proposed recall petition. In addition, she stated that
the Solid Waste Task Force was given only information the City employees wanted them
to have. After discussion Mr. Gateley responded that the Task Force members did have
an orientation of the city solid waste service by the City staff; however, the group had
a wide range of information and disagreed that they only looked at the information given
to them by City staff.
Mr. Felix Kinsley appeared before the Council to state that he hoped the City Council
passes the Solid Waste Task Force Recommendations.
Ms. Kathleen Ruopp, Solid Waste Task Force member, appeared before the Council
stating that she resented being accused of"rubber stamping" any recommendations. She
stated the task force was comprised of a diverse group of people and were given all the
information they requested, both negative and positive. She stated that the City had done
a large amount of research before going into recycling, and all that information was
given to the task force. Ms. Wulfers apologized to Ms. Ruopp and to the task force for
not speaking up at the December 7, 1992, Council meeting on behalf of the committee.
Mr. Bob Herbst, Solid Waste Task Force member, appeared before the Council to
discuss issues surrounding the task force. He stated that the City is facing uncertainties
due to the Federal and State laws on solid waste disposal, and felt the City should
continue the same level of solid waste service until these uncertainties are cleared up.
The only contact the committee had was with Council liaison Melvin Gateley, and no
ideas were presented to the task force ahead of time as to what the City wanted.
Ms. Wulfers questioned Mr. Calvin Chapman, Chauman of the Solid Waste Task Force,
whether she had contacted the task force during their review process, whether she sent
to him items in the mail, and whether he had contact from any other council members.
He stated he had not been in contact with her, that he had received an article from her
regazding cost containment, and that he had been contacted by Mayor Rhodes and a
representative of BFI. BFT wanted to have lunch with him to discuss privatization of the
solid waste services; however, he explained the charge of the committee was to discuss
volume-based pricing and not privatization of services. Mayor Rhodes had given to Mr.
Chapman names of companies that may want to talk to him regarding privatization of
solid waste services. Mr. Chapman stated that this contact was prior to the first meeting
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_ Re�i�1 ar Session December 21 �q 92
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of the task force and after the charge was given to the committee to review volume-based
pricing.
A discussion followed between Ms. Wulfers and Mayor Rhodes regarding the contacts
with the Solid Waste Task Force. There was also discussion between Mr. Limbaugh and
Mayor Rhodes regarding the issues of the proposed recall petition.
The following bills were given second and third readings:
BII.L NO. 92-270 AN ORDINANCE AMFNDING CHAPTER 30 OF TI� CODE
OF ORDINANCES OF THE CITY OF CAPE GIRARDEAU,
MISSOURI BY CHANGING TI� ZONING OF A PROPOSED
SUBDIVISION LAYOUT FOR KIITH DIIMUND DATED
OCTOBER 28, 1992, CITY AND COUNTY OF CAPE
GIltARDEAU, MISSOURI, FROM R-2 TO R-4, R-3, AND R-1
BILL NO. 92-255 AN ORDINANCE VACATING TI� CITY'S INTEREST IN A
PORTION OF A DETENTION BASIN IN WOODLAND PLACE
SUBDIVISION NO. 5 IN Tf� CITY OF CAPE GIRARDEAU,
MISSOURI
BILL NO. 92-254 AN ORDINANCE VACAT'ING TT� CITY'S �T IN A
SEWER EASIIvIENT IN GREENWOOD 2ND SUBDIVISION IN
THE CITY OF CAPE GIItARDEAU, MISSOURI
BILL NO. 92-271 AN ORDINANCE AS�TNEXING LAND TO THE CITY OF�APE
GIRARDEAU, MISSOURI, KNOWN AS TWIN LAKES
SUBDIVISION AND CERTAIN OTHER LANDS OWNED BY
MARK E. AND JOE EI.LFN OLIVER; JAMES W. AND LINDA
S. KESTER; Tf� NOLA M. 1VITSCH TRUST; JOHN AND
MARY WALTf�R; MICHAEL C. EVANS; MICHAEL P.
DRURY, ET AL. AND CAPE SPECIAL ROAD DISTRICT
BILL NO. 92-269 AN ORDINANCE ACCEPTING TWO GENERAL WAR:RANTY
DEEDS EXECUTED BY MIDAMERICA HOTELS
CORPORATION FOR TI� INTERSECTION TO VETERAN'S
HOME PROJECT
BILL NO. 92-264 AN ORDINANCE ESTABLISHING THE BOUNDARIES OF
LATERAL SEWER DISTRICT NO. 5-A, CONNECTING TO
TRUNK SEWER DISTRICT NO. 5, IN THE CITY OF CAPE
GIRARDEAU, MISSOURI
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Proceedings of the City Council, City of Cape Girardeau, Mo.
Regular $eSSion December 21 �9 92
SI.I.5975
BILL NO. 92-265 AN ORDINANCE AUTHORIZING THE MAYOR TO
EXECUTE AN EASEMENT TO BRUCE G. HACKER AND
RITHA C. HACKER, FOR RIGHT-OF-WAY IN Tf� CAPE
LACROIX CREEK/WALKER BRANCH FLOOD CONTROL
PROJECT
BII.L NO. 92-273 AN ORDINANCE ACCEPTTNG A SEWER, UTILITY AND
STORM DRAINAGE EASEMENT FROM BOBBY G. CLARK
AND JANE E. CLARK, FOR CLARKTON PLACE PHASE III
SUBDIVISION
BII.L NO. 92-274 AN ORDINANCE REAFFIRNIING TI� ACTION OF THE
CITY COUNCII.DECLARING IT NECESSARY TO IlVIPROVE,
PROVIDING FOR TFIE IMPROVEMENT, DIRECTING TI�
CITY MANAGER TO ENTER INTO A CONTRACT TO DO
TI� WORK, PROVIDING FOR THE PAYMENT OF THE
WORK, AND PROVIDING FOR TI�ISSUANCE OF SPECIAL
TAX BILLS IN AN AMOUNT NOT TO EXCEED $0.12 PER
SQUARE FOOT IN PAYMENT OF THE COST OF SAME ON
SEWERS AT THE MOUNT AUBURN ROAD AND KAGE
ROAD INTERSECTION AREA, LATERAL SEWER DISTRICT
NO. 14-1-C-1, WITH TI� BALANCE TO BE PAID FROM
GRNRRAI. REVENUE FLTNDS, IN THE CITY OF CAPE
GIItARDEAU, MISSOURI
The second and third readings of BILL NOS. 92-270, 92-255, 92-254, 92-271, 92-269,
92-264, 92-265, 92-273, and 92-274, were approved and the ordinances adopted upon
Mr. Spradling's motion, Ms. Wulfers' second, and the following vote: Ayes, Gateley,
Kasten, Limbaugh, Rhodes, Spradling, Wulfers. Nays, none. BILL NO. 92-270 is
ORDINANCE NO. 1284, BILL NO. 92-255 is ORDINANCE NO. 1285, BII.L NO. 92-
254 is ORDINANCE NO. 1286, BILL NO. 92-271 is ORDINANCE NO. 1287, BILL
NO. 92-269 is ORDINANCE NO. 1288, BILL NO. 92-264 is ORDINANCE NO. 1289,
BILL NO. 92-265 is ORDINANCE NO. 1290, BII.L NO. 92-273 is ORDINANCE NO.
1291, AND BII.L NO. 92-274 is ORDINANCE NO. 1292.
BII.L NO. 92-275 was given first reading as follows:
AN ORDINANCE NAMING VET�RAN'S MEMORIAL DRIVE IN THE CITY OF
CAPE GIItARDEAU, MISSOURI
The reading of BILL NO. 92-275 amended was approved and the ordinance adopted
upon Mr. Spradling's motion, Mr. Gateley's seconded, and the following vote: Ayes,
Gateley, Kasten, Limbaugh, Rhodes, Spradling, Wulfers. Nays, none.
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Proceedings of the City Council, City of Cape Girardeau, Mo.
Regular $ession December 21 1992
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BILL NO. 92-279 was given first reading as follows:
AN ORDINANCE ENACTING A NEW SECTION 17-194 OF Tf� CITY CODE,
RFi"ATING TO UNLAWFUL USE OF DRIVER'S LICENSE
The reading of BILL NO. 92-279 was approved and the ordinance adopted upon Mr.
Gateley's motion, Ms. Wulfers' second, and the following vote: Ayes, Gateley, Kasten,
ILimbaugh, Rhodes, Spradling, Wulfers. Nays, none.
BILL NO. 92-276 was given first reading as follows:
AN ORDINANCE AMENDING SCHEDULE K OF SECTION 26-121 OF THE CITY
CODE, BY PLACING YIELD SIGNS ON VETERAN'S 1VIIIVIORIAL DRIVE AT ITS
INTERSECTION WITH I�NNGSHIGHWAY, IN THE CITY OF CAPE GIRARDEAU,
MISSOURI
The reading of BILL NO. 92-276 was approved and the ordinance adopted upon Mr.
Spradling's motion,Ms. Wulfers' second, and the following vote: Ayes, Gateley, Kasten
Limbaugh, Rhodes, Spradling, Wulfers. Nays, none.
BILL NO. 92-277 was given first reading as follows:
AN ORDINANCE AMENDING SCHEDULE C OF SECTION 26-121 OF Tf� CITY
CODE, BY PLACING STOP SIGNS ON VETERAN'S r�IIIVIORIAL DRIVE AT
KINGSHIGHWAY IN THE CITY OF CAPE GIRARI)EAU, MISSOURI
The reading of BILL NO. 92-277 was approved and the ordinance adopted upon Dr.
Kasten's motion, Ms. Wulfers' second, and the following vote: Ayes, Gateley, Kasten
Limbaugh, Rhodes, Spradling, Wulfers. Nays, none.
BII.L NO. 92-278 was given first reading as follows:
AN ORDINANCE ACCEPTING P EASIIVIENTS AND TEMPORARY
CONSTRUCTION EASEMENTS FROM THOMAS E. HAMII.TON AND CECILIA
A. LAMP-HAMII.TON; KARL W. BUSCHE, TRUSTEE, AND GERMAINE L.
DAVIS, TRUSTEE; AND HANOVER LUTHERAN CHURCH FOR THE UPPER
CAPE LA CROIX TRUNK SEWER PROJECT, PHASE 4, SECTION II
The reading of BILL NO. 92-278 was approved and the ordinance adopted upon Mr.
, Spradling's motion, Ms. Wulfers' second, and the following vote: Ayes, Gateley, Kasten
I j Limbaugh, Rhodes, Spradling, Wulfers. Nays, none.
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Proceedings of the City Council, City of Cape Girardeau, Mo.
Regular $ession December 21 19 92
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BILL NO. 92-283 was given first reading as follows:
AN ORDINANCE AUTHORIZING Ti� MAYOR TO EXECUTE A QUIT CLAIM
DEED TO LEONARD W. LOWFS AND HELEN J. LOWES, FOR A WASTEWATER
TREATMENT PLANT FACII.ITY SITE
The reading of BILL NO. 92-283 was approved and the ordinance adopted upon Mr.
Gateley's motion, Ms. Wulfers' second, and the following vote: Ayes, Gateley, Kasten,
Limbaugh, Rhodes, Spradling, Wulfers. Nays, none.
BILL NO. 92-282 was given first reading as follows:
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN OFF-
SYSTEM BRIDGE REPLACIIVIENT AND REHABILITATION PROGRAM
AG�tRFMRNT WITH Tf� MISSOURI HIGHWAY AND TR.ANSPORTATION
CONIlVIISSION AND Tf� CAPE GIRARDEAU COUNTY COMIVIISSION FOR
IMPROVIIVIENTS AT THE INTERSECTION OF MOUNT AUBURN ROAD AND
HOPPER ROAD
The reading of BII.L NO. 92-282 was approved and the ordinance adopted upon Dr.
Kasten's motion, Ms. Wulfers' second, and the following vote: Ayes, Gateley, Kasten,
Limbaugh, Rhodes, Spradling, Wulfers. Nays, none.
BILL NO. 92-280 was presented as follows:
A RESOLUTION APPROVING TI� CITY OF CAPE GIRARDEAU SOLID WASTE
SERVICES REPORT AND RECOMMENDATIONS, DATED DECEMBER 3, 1992,
I PREPARED BY THE SOLID WASTE TASK FORCE
The reading of BILL NO. 92-280 was approved and the resolution adopted upon Mr.
Gateley's motion, Ms. Wulfers' second, and the following roll call vote: Gateley, aye;
Kasten, aye; Rhodes, aye; Spradling, aye; Wulfers, aye. Nays, none. BII,L NO. 92-
I 280 is RFSOLU'I'ION NO. 777.
BILL NO. 92-281 was presented as follows:
A RESOLUTION AUTHORIZING TI� CITY MANAGER TO EXECUTE A
SUBORDINATION AGREEMENT FOR A SECOND DEED OF TRUST FOR
PROPERTY OWNED BY CLARA M. SITZE
IThe reading of BII,L NO. 92-281 was approved and the resolution adopted upon Mr.
Spradling's motion, Ms. Wulfers' second, and the following vote: Ayes, Gateley,
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Proceedings of the City Council, City of Cape Girardeau, Mo.
Regular $e55iOn December 21 1992
SI.L,997:i
Kasten, Limbaugh, Rhodes, Spradling, Wulfers. Nays, none. BILL NO. 92-281 is
RESOLUTION NO. 778.
BILL NO. 92-284 was presented as follows:
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AIRPORT LAND LEASE WITH Tf� CAPE GIRARDEAU AIRCRAFT OWNERS
AND PII.OTS CLUB AT TI� CAPE GIRARDEAU MI7IVICIPAL AII2PORT
Mr. Spradling made a motion, seconded by Ms. Wulfers, that the liability insurance
limits be amended to $100,000.00 for injury or property damage for one person and
$1,000,000.00 for any one occurrence. The motion was approved upon the following
vote: Ayes, Gateley, Kasten, Limbaugh, Rhodes, 5pradling, Wulfers. Nays, none. The
reading of BII.L NO. 92-284 was approved, as amended, and the resolution adopted upon
Mr. Gateley's motion, Ms. Wulfers' second, and the following vote: Ayes, Gateley,
Kasten, Rhodes, Spradling, Wulfers. Nays, none. BILL NO. 92-284 is RFSOLUTION
NO. 779.
BILL NO. 92-285 was presented as follows:
A RESOLUTION AUTHORIZING TI� CITY MANAGER TO EXECUTE A
RELEASE OF LIEN FOR THE COMMLTNITY BLOCK GRANT PROGRAM �
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The reading of BILL NO. 92-285 was approved and the resolution adopted upon Mr. ��
Spradling's motion, Mr. Gateley's second, and the following vote: Ayes, Gateley,
Kasten, Kasten, Rhodes, Spradling, Wulfers. Nays, none. BII.L NO. 92-285 IS
RESOLUTION NO. 780.
Mr. Limbaugh asked for discussion regarding the Charter Amendment Committee and
stated that he preferred to discuss at the 7anuary 4 Council meeting whether to appoint
one or two committees. Mr. Limbaugh made a motion, seconded by Mr. Gateley, to I
rename the "Charter Amendment Committee" the "Zone Committee"; to define the scope
of the committee to be limited to the functions of making recommendations as to drawing �
the zone boundaries and to make sure that it is otherwise consistent with the e�sting City ' '
Charter; and to appoint to the committee all those who had applied in addition to those I
already appointed. Those who applied are Dr. Peter Bergurson, Ms. Mary Ann "Miki"
Gudermuth, Dr. David Kaelin, Mr. 7ames P. Limbaugh, Mr. Cleo Mabrey, Mr. 7ohn
Mehner, Mr. John Oliver Jr., Ms. Loretta Schneider, Mr. 7oseph Mirgeaux, Mr. I
� Kenneth Richardson, Mr. Howard Tooke, Mr. Iarry Trickey, Mr. Jess David Hopple, �
� and Mr. Michael D. Edwards. In addition, Mr. Limbaugh stated the Council should �
consider reappointing the original Charter Commission as pmposed by Mr. Rediger and
stated he would be willing to make a motion to do that at the next Council meeting. �i
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Proceedings of the City Council, City of Cape Girardeau, Mo.
Regular $eSSion December 21 1992
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Mr. Spradling made an amending motion, seconded by Ms. Wulfers, that in addition to
those being appointed that Dr. Melvin Kasten be appointed the temporary chaitman of
the committee for the purpose of organizing the committee and beginning its functions.
The motion was approved upon the following vote. Ayes, Gateley, Kasten, Limbaugh,
Rhodes, Spradling, Wulfers. Nays, none.
After discussion, the original motion was approved upon the following vote: Ayes,
Gateley, Kasten, Limbaugh, Rhodes, Spradling, Wulfers. Nays, none.
Mr. Spradling made a motion, seconded by Ms. Wulfers, to approve all applicants for
the Colonial Cape Girardeau Foundation Project Task Force, which included Mrs. Gaye
Blank, Mr. Charles Daniel, Mr. Steven Green, Mr. Kenneth Payton, Ms. Barbara Rust,
Mr. Mike Kohlfeld, Mr. Dan Drury, Mr. Robert Paul Hoppman, Mr. Han Mu Kang,
Mr. Scott Shivelbine, Mr. Kevin Spaeth, Mr. Stan Thompson, Mr. Dennis Vollink, Mr.
John E. Schneider, Mr. Jim Grebing, Ms. Cyndy Hall, Ms. Rebecca Richey, Mr. Milton
George, and Mr. Jay Knudtson. The motion was approved upon the following vote:
Ayes, Gateley, Kasten, Limbaugh, Rhodes, Spradling, Wulfers. Nays, none.
Mr. Gateley made a motion, seconded by Mr. Spradling, that Mr. Bill Yuede, Mr. Curt
Smith, Mr. David Kaempfer, Ms. Mary Spell and Mr. Bobby Robins be appointed to the
Vision 2000 Community Relations Council. The motion was approved upon the
following vote: Ayes, Gateley, Kasten, Limbaugh, Rhodes, 5pradling, Wulfers. Nays,
none.
Dr. Kasten made a motion, seconded by Mr. Gateley, that Mr. A1 Spradling III, be
appointed to the Park Development Foundation Board for 1993. The motion was
approved upon the following vote: Ayes, Gateley, Kasten, Limbaugh, Rhodes,
Spradling, Wulfers. Nays, none.
Mr. Gateley made a motion, seconded by Ms. Wulfers, that Dennis "Doc" Cain, be
appointed to the Convention and Visitors Advisory Board. The motion was approved
upon the following vote: Ayes, Gateley, Kasten, Limbaugh, Rhodes, Spradling,
Wulfers. Nays, none.
Mayor Rhodes made a motion, seconded by Ms. Wulfers, that Mr. William Schafer be
appointed to the Board of Fxaminers. The motion was approved upon the following
vote: Ayes, Gateley, Kasten, Limbaugh, Rhodes, Spradling, Wulfers. Nays, none.
Mr. Spradling made a motion, seconded by Dr. Kasten, that all bids on the South Walker
Branch Sewer Relocation Project be rejected, and that the pmject be rebid. The motion
was approved upon the following vote: Ayes, Gateley, Kasten, Limbaugh, Rhodes,
Spradling, Wulfers. Nays, none.
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Mr. Gateley made a motion, seconded by Dr. Kasten, that the Council meeting scheduled
for January 18 be changed to January 20 due to the Martin Luther King Jr., holiday; and
that the Council meeting scheduled for February 15 be changed to February 17 due to
the President's Day holiday. The motion was approved upon the following vote: Ayes,
Gateley, Kasten, Limbaugh, Rhodes, Spradling, Wulfers. Nays, none.
Mr. Spradling made a motion, seconded by Mr. Gateley, that the special permits for
IPinewood Mobile Home Park and Pioneer Mobile Home Park be extended for six ,
months. The motion was approved upon the following vote: Ayes, Gateley, Kasten,
Limbaugh, Rhodes, Spradling, Wulfers. Nays, none.
Mr. Spradling made a motion, seconded by Dr. Kasten, that the annual city audit be
accepted for fiscal year ending June 30, 1992. The motion was approved upon the
Ifollowing vote: Ayes, Gateley, Kasten, Limbaugh, Rhodes, Spradling, Wulfers. Nays,
none.
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There being no further business, the Council adjourned upon Mr. Gateley's motion, Ms.
�� Wulfers' second, and the following vote: Ayes, Gateley, Kasten, Limbaugh, Rhodes,
Spradling, Wulfers. Nays, none.
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Francis E. odes, May
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Gayl L. Conrad, Deputy City Clerk
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Exhibit A
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7�ie facts on 7'eleFuture lI
•TeleFliture Q is a logical conanuadon of the improvements and benefits created by TeleF�ture 2000.
'It is a ihree-year,$153 million program of new fiber optics,reduchon of some rates (including long distance),
` dramatic expansion of the Lifeline program and lowered access charges for long distance calls.
•Basic local rates would be&ozen for three more years,meaning Missouri will have gone 12 years without an
incxease in basic local rates.
`'Ihe heart of the package is an $82 million fiber network linking virtually every Missouri community.
'The focus of the fiber program is on schools and hospitals,bringing new educational and health care services
and opportunities to;�fissouri.
•Public middle and high schools,and universities across the state will be linked to the network. 'Ihis will
provide for distance learning opportvnities,enhancing the programs already o$'ered by the schools and putting
them in touch with courses that were previously out of reach.
•Hospitals also vvill be linked,providing access to advanced medical services.
'Though the focus is on schools and hospitals,the fiber optic network will be a superhighway that will open the
state to new and ezpanded use of telecommunicaaons.
•As for the rate redudions,long distance will be reduced by 56.5 million annually,access c�arges by 57.3
million. It's possible the benefits of these lowered access charges paid by long distance companies might be
�-_�~- passed on to customers,further lowering long disrance bills.
~~ 'Another key point is the continuation of a profit sharing glan begun under TeleFhh�.re 2000. Under a formula
established by the public service commission and the company,SWBT would share a portion of its profits. In
the last two years,the company has shared more than�44 million with Missou�i customers.
'TeleFliture II is made possible by an incentive regulation plan that accompanies the improvements and reduc-
tions. Basically,the plan gives the company earnings fle�bility so that it has the opportunity to earn well if the
business is iwn right And,again,if we earn well,a portion of o�profits will be shared with customers.
'Tliere are some people in the state who undervalue the improvements we've made and will make--or maybe
the�re not aware of them. Look at the options the same way you might approach your savings strategy. You
weigh short-tenn investments agamst long-term. Short-term options might look good,but it takes courage to
save for the future. In this case the long-term investment has a higher payoff with multiple short-term divi-
dends. We can make some rate reductions while keeping local rates steady and providing technology that will
have a lasang benefi� Those who prefer this short-teim soludon only are in effect saying W eustomers that
their service dcesn't need to be improved and they don't need access co new technology.
� •Why is a plan like TeleFl�tur�e II necessary? For several reasons,all of which are oH'shoots of the faci that the
telecommunications industry is changing rapidly as are the demands customers make of their phone service.
T�u�ee years ago,the company,with PSC approva,l,began a regulatory ezperimenL In retinn for the benefits the
company gained in this ezperiment,it increased its investment in Missouri—by about a180 million. That
investrnent broug.ht new benefits,technology and services to outstate�customers,and gave the state new eco-
nomic development advantages as it competed for new jobs. Just as the state faced gz owing compeation for
those jobs,SWBTs competition grew—more than 1200 percent in the last siz years—making its investrnents
-: far more risky without increasing earnings potentiaL In order to make investments in the technology necessary
. to keep Mlssouri competitive and answer customer demands of the network,SWBT needs some assurance that
its earnings will be equal to its risk. That's the value of a pla.n like TeleFl.iture II.
Exhibit A
444
� Southwestem Bell
Telephone
News Release
For more ir�fom�ation cor�tact
1
�
t
�_ :�.;;t: :.�i_�=�.`:
:1rea :�.:in•:i�er-���^:rr.t_ini ��;.- I�ei:�tio;is
��j � �11\-E?:' JpL'Lf1�S :jCl . 3rd ElOOi
1 ; 1 �-3.3�-9d8�-
i_L'.i1 _.ii . . 1tiL' _.'Jl ,liti. ��:) !(t,_y1�t_t[C .
iIDpol'tar:t. ptioiic pO1 �Cti- S:iil be de•� ided on b� tile '�tisso�iri
Pub� ic Sert ice �:ommis5ion in t:�e ne�t ie�. months . :�a�-e �-ou
heard a�out it''
�t ' s noL comm�n i;now-ied�z ��et , but ��cu ' ii hear m:;re as t�e
nearin,s oe�in . khat �ou ' ��e prooa���� neard so iax is a 1ot
of b�� numbers bein� ootinced aro�_ina -- niim�ers Lhat are up in
the mi=iions . Tna� ' s ti:e �ind of numbers tnat �ec people ' s
attention .
t,�nfortunatel�- , in tnis case , %:nowied�e of the nu:nbers is not
-.ne c:r,o�� s�or�' . +}ie �noie stor�-, in fact , isn ' t as sexv as
ai� tn�se miilions , but it is tar more beneiiciai .
�:1 �PE' I'.2.`;t [ el� P,1:JP.:.r,s impor�ant Fili�11C �Oi1C} �vlli �i7e i0:'iIS?C�
tf13� LOili�1 ���L'O�• lt�t� a 4:c1�' iOL' 11iSSOlii'1 i.0 �a'_Il P.��: eQLiCat.lOil
L3!?t1 .7E'dl `..:1 c1C .'�111:.c1�c_,S � c:S �•2_1 'dS 2CCfi0ITi'_C dCli: S�:�C l al
de��eiopment Gj�j�JT'4�11I11T..leS .
Tne �lissouri r�_i�ii� 5e*•Lice i�ommissiorl uill near testimon��
re�'ar�'.i:�� a �`Z'O�OS�1 b�- JQUtY1�:PS�FZ'R Liail iE'i2r�i Oi12 . The
proposai �:ould �ont :nue the fle>:ibie ;uideiines tnat na�-e
�o-�err.ed �rie teiecommunicatior.s industr� for tne last three (
;.-ears . �
ihis earr.in�s fie�=o:_li;�� pro�-ided new opportunities tor S�BT
io i;;�-est ir: �:issoiiri , and provided for snarin; of profits
c:�tn customers . In ai1 , �:e invested aoout Si80 million ir.
nek� tecnnolo��- and snar•ed e:itn cus�omers about S�� miliion
o�-er the last two �-ears .
Exhibit A
445
. :3; _ _
! t �i703? `.�i.liC:E311!le5 dI'e COCltl['.UE<1 , J���T wCU�Q �')E�1R ��OT'ri O;1 3
pc7�};r7;e 02 r<ite reductions 3C1� C1E': �:JL't� GtG��zl'Ci1ZdL10ri caiied
Teier�_:tttre 2 .
Teieruture `_' is a vision oi �:nat te '�ecommun�cations can be .
It represer.ts a practical applica;. icn of hi�h-technoio��� in
comoination �+ith some rate reduct ��.�ns .
Here are tiie specifics :
-- S�'3T wi�i lo�.er rates :or se�-e:ai ser��ices , inciudin� lond
ciis�ance . Tne total rate reutiction is S2= r;�illiori .
-- Rates for basic iccal ser�-��e �.: ili be irozen for three
more ��ears , brin�in� the total to �2 �-ears since a basic
iocal rate inc:ease .
-- The LifeLine pro�ram tnat pro�-ides reduced rates for the
poor and elderl� will be e:�panded .
-- S�rBT aiso wouid be�in a ne�: ro�ind o� nets�•orn
modernization .
;he modernization p�an is the near� of Teieiuture 2 .
Southwestern Bel� plans a fiber o��ic superhi�hwa�� �nat +;iil
wea��e a ti;reaa of ne�. :�i;:� te�nno����- tnrou�houl :ne r�_ira�
�lissouri iandscape . This thread �•cuid tie to�ether
Llisso�iri ' s communit�es b�- .joir.in� scnoo_s and hospitals to a
fiber optic net�:or�:.
aimost e� er�- middle schoel , .junior hi�h, hi�h school ,
communit�- colie�e and uni��ersit�- in SkBT territory could be
connec+ed to :.nis net�:ork. Once ..�nnec�ed, _hes� s�i::3c�:� ar.d
� commur.ities could enjo,y new edtica�ionai o_�pc��u-:ities threu�h
c,hat is commonl�- called dista:;c•�� -a_�nin� .
The �•alue of distance i �ar-:i -;= is `hat throu;h a t ideo
network, teachers can e•: tend thei � reach as far as the fiber
l ��n:: ar.�: ` ne demand :or their ser�. ices ailow . For e�ample ,
_ if a Germari lan�ua�e teacher �.�ere not a��ailable at Central
Hi;n School , but se.-eral students wanted to take German, they
might "distance learn" from a teacher at Southeast Missouri
S'..atP , cr e�-en from, say- , kebst.er Lniversity in St . Louis .
Exhibit A
446
� ,_ ,
, . �.., � :S :i:?S�? 1 ; :iiti jG1r1 ille Tl?i4;:i:'ti . tllE'�' k'1 'L1 DL'iC:� RE'ti
ii.-�ais�;: c:�rF° szr�. ice� %�:ici efiiciercies to outsLaLe Lfi:�seuri . �
�.�r instanre. , �_io�tors car cio man�- tiiin�s o� er the ne�work �,
- i:at normali�- �otild be clone in per-o�i . Tnis
ad� anta�e cculd sa��e �:cu the : ime 3:id espense of tra��elin�
ior a second epinion . It also could ;i��e more people access
to speciai :sts t�tio tend to mi;rate to urban centers .
:�'ie p�arl benefits 't«B '� , too . The continued fietibilit�
soi.i�ht by� ttie compar.�� pro�-ides earn_n�s potential . It is
tnis pctential that pro�.-ides tze incenti��e for new
in��estments in �?issouri ' s telecommunications , includin� the
?iber• net�:ork .
it is no eta»eraiior. to sa�� tnis fiber optic netS:ork t:o,_��c
� be like a new I-�� t;itn hundrecs of traffic lanes riinr:in� in
both directions .
In fact , ��ou mi�ht compare thi� i��no� ati��e step iri
telecommunications to the evolutio^. of t:ansportat:en i:� the
countrG. '�oda;.- � S !�3L'�PSt C :�:25 �'_'C�F; l'ap ��cr,�s ice
` r.?�S'�G.'�F;tiCt"i t1�::�5 . _y I'3 � �I'�..._ <:?:O� OT' S�: !��_)1.^.`� c'�;1": _il %i
_Ot�'". ti�'� 3 . . T'.. ii:=1_ � .�i: :1;t:c-. � _ .- ...^..^„�.. �I'OLdi:] . •P.`: � R13.)�Z
i. _ :l��� � L' ... . � .. �;I: -_ ._ .::,.���� ,.0 .:r '. . _ r .. � �.12:_ B. I��'i:. �S .
��r�. _ :_' _ _ '-i�. ,.... `::;� , . _ . . R_ I':3�i:'. -, .:�'T't� �i�'311aD1E' 1:7 man�-
..:,= . . .- .. - - � ,- . .:�; : . . , , ;�. �_ , c ��ies t}�a: t.ere rict
_.._�,.���c :. . ;�; a ;�z_._::;r , : �;,;.3� or se r�-ed ��- a lar�e 31 L'FOi t
t, �:.=' ••r':.E��.i` c'�1 ,`.O lri:3t. illr:??S Dr'��:_e> I.Jh \'1PH" 8.S 3Z�E'd5 i_00
i'r�'�;�.�.:' :.i: :Je .:::JRS'c�1�L'ei7 f:�L' A i::'i: . . reloca�i.lCl� �LiS�RcSS .
TqCl��" � lt. 1S De� OT3lifl� f71c)L'E' 'clraCl TiGI'� O�i�'101iS `.�icl�
'P;P.CJ!iliilL::11C'c1� 10!'LS �":'3f'. O� ?I'COi?IP '!:= i��ilci�Lies of U1St.at1C2 . �
_.,.�-_ _ � �:i << :,a::e ��:.�:�r:,i�a _ :.,.. _ _ . _ �a.:,s sacn as 5ou�h�estern 4
' 1�
JF'-� s Teiefutu�e `�� �.: e:-�s�.i�e t_zat I'liT'c11 �Sissouri is not
:,���a,sed a�a�.r. . �,,,,�
"r�ere are :i�cse �::•�o ��n�iert:�aiiae �:ha: can be done with �•our
tAie�ommt.ir�ications ser�-ices . The�� Gelieve the �oals of
re;ulat- ion is to make iocal rates cheap and provide ser�•ice
- that is "adequate . " The messa�e this sends is that the value
of ser��ice is based solely on price and that you don' t need
access to new technolo�y.
Exhibit A
447
: ;�e mess<3,e oi Tt� i�future '= is more t-han t'tlat . i� pro�-ides a
:,<: '_;.�;,c�u approaci� . The p1�n is uesi�ned to cieii�'er se�vices
t :� •�ustomers at a reasonable rate , brin�iii� neH� social anci
economic de��elopmerit t.o the state . It ' s tne kind of approacil
t:�at pro�-ides lon;-term benefits for `iissouri .
( Zehe Robertson , :�sst .�'ice President-E�ternal :�ffairs , k�ith
�o,.itns�estern Bell Teie��,one Co . , kill presen� a program on
TelFf,.iture 2 at the Cape Girardeau Chamber of Commerce
�Tanuar��- i3th Firsc Fr•idav Coffee . Tnis meetin� starts at i : 30
a . m. anci is he�d ar, the Drur�� Lod�e . Interested members of
�_rie communit�- a�e encoura�ed to a�tend . 1
�
�
Exhibit A
448
TeleFuture II
�ey Points
TeleFuture II holds numerous opportunities for Missouri , �
includinq: �
�
1 . Business Development and job qrowth--TeleFuture II will link
virtually every Missouri community wfth a fiber highway of
the future that offers new opportunities for economic
development. Special connections will be made to schools and
hospitals within these communities so advanced distance
learning and medical services can be offered.
2 . Expanded eligibility for discounted telephone service--with
TeleFuture II , more than 10$ or about 200,000 residence
customers will be eligible for Lifeline service .
3 . Frozen lacal rates with Qrice reductiona on key services--
Local rates for all residence nnd business customers would be
frozen under the plan while rates for services of concern to
customers, includinq lonq distance, would be reduced.
4 . Profit sharinq Mith customers--TeleFuture II continues the
profit sharing program which has returned $44 million to �
customers in the last two years and provides SWBT with
qreater incentives to invest in the Missouri network .
5. Investment in Missouri�s future social and economic health--
The TeleFuture II packaqe represents a lonq-term commitment
to usinq telecommunications to improvinq Missouri 's economic
_ opportunities and quality of life .
t �
� �
�
Exhibit A
449
' Southwest�rn 8e11 Telephon•
Ttlefuture II Pcoposal
Rate Reductions and Expanded Prograss ( 3-years ) $66 �illion
--No c ange n cur�ent oca aervice rates which have
been frozen for nearly nine years .
--Expand the current eligibility for the company' s
Gifeline proqram to meet Medicaid and federal poverty
quidelines . It' s anticipated as many 200 , 000 or more
than 10 percent of Miaaouri ' s residential customecs
would be eligible .
--Reduce the company� s lonq distance �ates by 56 . 5
million per year or about tour percent.
--Reduce the dccess fees Southwestern Hell charq�s lonq
distance companies to ust its netwock to compl�tt
in-state calls by 57 . 3 million p�c year or 12 perctnt.
Thia would equalize the interatate and intrastat• rat•
atructure. It' a poaaibl� those ceduced rates could_ b•
pasaed on to cuatomers in the form ot lowec lonq `�
distance rates.
--Eliminate Touch-tone as saparate s�rvic� by �
consolidatinq it with local servic�. To obtain to the
new co�binad rate, the price of Touch-tont ssrvice
would be reduced by n�arly 5 p�rcent and then added to
local servica. Customers who curr�ntly do not hav�
Touch-tons s�rvic• would not b� :ubj�ct to th� n�v
combined servic� as long as they r��ain at th�ir
current address.
--Eli�inat• long distanc� charqss on pay phon• calls that
oriqinate in th: out�r ar�as o� St. Louis and Rsns:s
City and t�r�inat� in th� aetropolitan ar�as.
N�twork Inv�sta�nt Sa7.6 •illion
--U:� er cabls to link virtually ev�ry rucal com�aunity
to �nhanc� busin�ss dev�lops�nt and job growth. �11
public •iddl� schools, high schools, univ�rsiti�s snd
hospitsls in outstat• Missouri to otl�r distsnc•
l�arninq and advanc�d sedical s�rvices. Soe!
additional tibtr will b� plac�d in St. Gouis and Ransas
City suburbs to acco�uodate the ne�d� oi �ducstion and
h�alth car� institutions. Th• proj�ct Mould b�
comPlet�d vithin thr�• years.
� --Accelfrat� n�tMork ■od�rnization proj�cts to ispl�ment
th� PSC' s conteaporary basic s�rvice �ule within the
next 18 mcnths .
� Exhibit A
-2- 450
Protit Sharinq
-- ont nu• profit-sharinq proqram at current l�v�ls .
Cr�dits to custom�rs to b� bas�d upon th• company' s
linancinl Qec�ormanc• .
Length of Plan
--No pre3etermined end to the plan. Company and
commission could seek ch�nqes after two years, but
amendments can' t be mad• to the plan until after thcee
ye�rs . b
�
i
� �
�
� �
�
Exhibit A
451
TeleFuture II Summary
Network Modernization $ gZ million
F er Program
Contemporary Service S 5 . 6 million
Total • � °n
Rate Reductions** S 1g ,5 �illion
Long istance
Selected pay phone calls $
1 .8 million
Lonq distance access rates S 21 .9 million
Combined T-Tone/Local Service $ 6 .0 million
Total . ■ on
Discount telephone service S 16.8 aillion
��
Total Value TeleFuture II $ 153.6 �illion
�� �* of the rate reductions and expanded dfacount �
valuea
teiephone service Qlan are based oa a three-year v ew
of TeleTuture II .
�
�
, �
Exhibit A
� � 452
who can be an intervenor?
R
1 , Who can be an intervenor? �
' Any person or group that wants to participate in a
t
Public Service Commission hearinq to present their views
in supQoct or opposition of an issue in order to qet
that issus accepted/rejected by the Commission.
2, Da i need any special qualifications to be an
intervenor7
No. You just need to demonstrate an interest in the
proceedinqs that goes beyond the qeneral public
interest . gor TeleFuture 2 , special interests might be a
school district, a university system, a hospital
� asso�iste�ificninterestcinesomepaspect�ofcthe proposalat
has p
th�t' a before the Commisaion.
� 3. How does one become an intervenor7
An aQplication to intervene must be filed with the
Public Service Commiseion. Thereafter, the Coiamisaion
will either qrant or deny intervention;
4 . if intervention is granted, what does an intervenor
ao�
- File testimony by witnesses (optional , and may occur
on more than one date ) ;
Answer other gtoups' questions about your position,
or about your qroup or individual interests in the case .
(This is called discovery) . You can also ask questions
of other groups and their positions;
� �- Attend pre-hearing conferences; �
- Attend hearinqs . ( if testimony is filed, witness will �, �
be presented to give pre-filed written testimony and be �
cross-examined about 6uch testimony) ;
Submit briefs ( summaries of evidence supporting your
position) after hearinq to explain and reinforce youc
�. _ position.
Exhibit A
453
5. Can I be cross-examined as a witness?
Yes . If you file testimony you would need to be
available durinq heacings for cross-examination under
oath by the other parties to the case .
6. What are the advantaqes of being an intervenor?
An intervenor gets to be an actual participant in the
case and qets to make his/her qroup' s views known on
the cecord. The Commission takes these views into
account w-Fien deciding which way to rule in the case .
7 . Do the PSC staff and the Office of the Public
Council represent my groups' interests?
The Office of the Public Council represents the public
in qeneral . The PSC staff works for the Commission and
generally attempts to balance the needs and wants of the
telephone customers and regulated utilities, includinq
Southwestern Bell Telephone Company.
{ 8. Do I need an attorney to be an intecvenor?
Yes.
9. Sow much will it cost to be an intervenor7
� It depends on your level of involvement. There is no
fee to file an application with the Commission to be an
intervenor. Expenses are based on your employees' time,
expenses to and from Jefferson City, and attorney fees .
14. How such tiae will it take ta be an intervenor?
That depends on how much you want to get involved. It
doesn' t t�ke much time to fill out an application and
attend pre-hearings . It takes more time to provide a
witness, to file testimony, conduct or respond to
� discovery, attend all or part of the hearings, and
� pcepare a brief.
11 . �ould I need to spend the night in Jefferson City?
l Probably. Everyone is assigned a specific time on the
- witness achedule . These times vary and are subject to
Exhibit A
454 �
chanqe . You may need to be present at the Commission
early in the day.
12 , Will Southwestern Bell Telephone help me prepare to
be an intervenoc? �
�
Southwestern Bell Telephone can answer questions , l
provide examples of applications to intervene, samples
of testimony, copies of Commission rules and other
information if requested.
13. If i have questions, who can I or sy attorney call
at Southwestern Bell Telephone7
You may call your local Southwestern Bell Telephone
Community Relations Manager .
i �
�
�..!
�
Exhibit A
455
TelePuture 2 Staff Com laint
Pro�ecte Time ine
Pleese Note : The dates listed below are estimates of when these
events will occur . A formal , final timetable will be
compiled assuming an overearnings complaint is filed.
At that time, the commission will establish a for�al
schedule for hearing the TeleFuture Z/complaint
proceedinq.
Jan. 6 Staff files formal complaint alleginq SWB overearnings
of more than 5100 million ( and maybe as high as 5150
million)
Jan. 13 Office of the Public Counsel files similar complaint
alleqing overearnings of more than $100 million
Feb. 1 SwB files testimony with the PSC supportinq
TeleFuture 2 . Staff, OPC and other parties file
testimony supporting overearninqs alleqatiions
May 3 SwB files testimony rebuttinq staff and OPC alleqations
of overearninqs . Staff and OPC file testimony
concerning their views of TeleFuture 2
July 15 Three weeks of hearings before the PSC begin
Oct. 10 Estimated date for PSC decision on case
�
�
Exhibit A
456
The Need foc TeleFuture 2
At the request of SwBT, the PSC staff and the Office of
the Public Counsel , the PSC has extended the curcent
profit-sharing plan through 1493 . The additional year
will qive the PSC the opportunity to consider two
dramatically different plans that will shape the future
of Missouri . �
Southwestern Bell ' s TeleFuture 2 proposal is dn �
integrated package that includes a fceeze on local
rates , expanded LifeLine service and price reductions
for key services . At the hedrt of the proqr�m is a
proposed, ambitious fiber optic hiqhway to link Missouri
communities togethec to create economic qrowth and
social opportunities into the next century. The
proposal would continue the current profit-sharing
arrangement that' s brought $45 million in credits to
customers over the last two years .
On the other hand, the staff and OPC' s likely will seek
significant revenue reductions . The qoal of this
"numbers-based" regulation is to simply reduce rates for
local telephone service and maintain service quality at
adequate levels . That kind of backward-lookinq
regulation offers no vision for the future; it assumes
the needs of all customers can be met by simply lowerinq
rates . It offers no recognition of the benefits of a
� modern telecommunications network and the continued need
to invest in Missouri ' s future .
The bottom line is it' s not possible to implement both
proposals . Forward-looking regulation should encouraqe
investment by telephone companies to build a network
that will bring jobs and social growth to the state . If
a siqnificant rate reduction is ordered, the dollars to
invest in Missouri ' s future will not be available .
From ouc persQective , the decision to invest millions of
additional doll�rs in Missouri is based in part on our
ability to benefit from added efficiencies and sales
efforts . If the profit-sharinq formula does not
provide incentives for investment, the risk is too great
to p�t millions of additional dollars into a Missouri
network to build for the future of the state .
� �l
��
�
Exhibit A
457
PSC Staff Office of the Public Counsel
Anticipate Recosamen ations
Based upon their reports to the PSC , Southwestern Beli expects
the PSC staff and the Office of the Public Counsel (OPC) to file
complaints in early January alleginq overearnings of more than
$100 million ( and possibly as high as $150 million ) .
� While we obviously don' t have specific information about the
alleqed overearnings , here are some areas we believe will be
targeted.
1 . Reduce Southwestern Bell ' s authorized profit levels . Even
though as part of the curcent incentive plan, the company has
shared S45 million in profits with customers over the last two
years . (The staff 's accounting puts the company' s pre-sharing
return at around 18$ return on equity. Of course, that fiqure
is misleading because the staff generally inflates revenues
( i . e . Yellow Pages earnings ) and minimizes expenses . The
company' s return on the books for its Missouri operations
aftec sharing is about 11 . 5$ .
2 . Not recoqnize expenses that were incurred as part of
manaqement and non-management early retirement programs. The
company spent several million dollars in offerinq early
retirement programs to employees to reduce expenses over the
long-term. Ovec the last three years, the company has reduced
its workforce in Missouri fcoaa about 8,000 to t+bout 6,500.
3 . Recommend disallowance of 20 or more expense items, includinq
depreciation, salaries, advertisinq, pensions, corporate
expenditures and research and development costs .
t
Exhibit A
458
Q' s i A' 3
' Q, what' s your response to the PSC staff ' s and OPC ' s
allegations of overearnings7
A. It' s a drdmatic illustration of what happens when
regulation becomes overly focused on numbers and
accounting . And it incorrectly assumes that the needs of
all 1 . 8 million Missouri customers are identical when in �
� truth, the needs of customers are as varied and complex �
a6 the qeoqraphy of the stnte .
We don' t agree with the staff' s findings, but the larger
issue is whether Missouri and its communities ace going
to invest in the future . A fiber optic superhighway
means jobs and and other economic and social
opportunities for the state . The staff and OPC
alternative is to look backward and focus on regulation
that seeks only to make local rates cheapet and maintain
telephone service quality that is merely adequate . And
that' s not what customers are tellinq us they want.
TeleFuture 2 means movinq Missouri forward and readyinq
the state to be succcessful into the next century.
Q. If the PSC reduces your revenues, why won' t those
investments be made?
A. The answer is simple . The dollars will not be available .
J Just as Missourians who've been hurt by the recession
have not bought new cars and appliances, the company will
not be in a position to invest dollars in modernizinq the
telephone network if revenues are reduced to a level
where there is no incentive to invest in the state .
�' Q. How does regulation play a factor in the company' s
willingness to invest7
A. Forward-lookinq regulation can provide an incentive for
the company to put additional dollars in Missouri to
modernize the state' s network . Under the TeleFuture 2
plan, profit-sharinq would continue at today' s levels .
That kind of requlation gives the company an incentive to
reduce expenses and produce more revenues because the
company can earn more profits . Customers benefit because
they share in the company' s success through profit
sharing and by makinq full use of the investments in the
state' s telephone network . `
�
�
Exhibit A
459
-2-
Q. If the PSC reduced local rates by 5100 million, what
would be the impact on customers?
A. Neithec the staff nor OPC has filed an overearnings
compl�int at this time . However , if SwBT revenues were
reduced by 5100 million, those reductions would come at
the expense of the enhanced mod�rnization efforts and
profit sharing .
Q, if the PSC reduced local rates by $100 million, how much
of a reduction would be seen by the average residence
customer?
A. If $100 million in reductions were taken exclusively in
local rates, residence customers in downtown St. Louis
and Kansas City would see a reduction of about $3 off
their basic local rates . Rathec than reducinq local
rates for customers across—the—board, TeleFuture 2 would
reduce rates by S7 for 200 , 000 customers who need it the
most and would invest in Missouri ' s future .
(
,
�
Exhibit A
� � Southwestern Bell Telephone 460
Regulation
Current
Incentive Regutation � �
Standard Experiment �
Rate of Return � � � � � � ' ' � �
•.�PYAOt3 s1+a+`Bd•.•
�•�wtth CustOmBR'
Authorized Overearnings
Example
Profits
�:rro't�t•:•:•:•
:Rei�icOrin:
E�enses
Under rate of return regulation, the PSC sets rates that provide SWBT with an amount
revenue intended to allow the company to recover its expenses plus its authorized pro#ii
level.
Under the current incentive regulation experiment, the company's cap on profits � t
higher, but prolits are shared with customers. The eaperiment is designed to give t
company an incentive to reduce expenses and generate hi gher revenues because tt�
an opportunity to earn addieonal profits while sharing profits with customers and '�
improvements to the telephone network and its services.
In its allegation of overearnings, the Staff and Office of the Public Council will recomn
a dramadc reduction in the company's authorized profit level. At the same time, they w
recommend certain expenses should be disallowed and they will arbitrarily add in certa
revenues the company never realized. The net imQact of these proposals will call for th
company to reduce revenues by more than �100 rrullion, which will mean lower rates tc
some customers, but which will prevent the company from sharing proRts or making
network upgrades.
Exhibit B
461
OPEN L$TTER TO THE CAPE GIRARDEAII CITY COQNCIZ
We are very concerned about the Council ' s recent actions
regarding the issue of amending this City ' s Cha=ter. We are
aware that a great majority of citizens voted to amend the char-
ter to establish zones for the election of council members.
However, it was not a vote by the people, to totally revamp this
city's charter or to recall presently elected council members.
The City Charter, as our city's constitution, is a profound-
ly important document for this city and any undertaking to change
it in any fundemental way must be carefully measured. In review-
ing the tapes of the city council meetings, however, it is clear
that there was no or little reqard for proper procedure in the
the formation of a committee to make charter revisions. Council
precedures concerning the appointment of committees that have
been in place for years were entirely disregarded. , Further, the
scope or size of the committee, ncr its powers were defined. For
the city council to turn over the modification of this important
• document to people or groups of people who have a special vested
interest is dangerous and irresponsible. The charter beiongs to
� � the people of this community, not certain members of the City
Council.
Because this situation has 3�generated into s�:ch chaos, we
support reconviening the charter commission and allowing the Cape
Girardeau Chamber af Commerce to fill any vacant positions. We
� hope and encourage the League of Women Voters to help in the
process. It has been ten years since the charter was appraved by
the voters. Therefore, we recommend that the charter be reviewed
in its entirety to determine if any other technical or substitive
changes should be addressed.
We ask the council to abandon its disarganized attempt to
f orm a committee to modify the charter and to support the recon-
• viened charter commission sponsored by The Cape Girardeau Chamber
of Commerce.
�. We feel that despite the recent zone issue election, members
• -- of the Elect a Neiqhber Committee are not entitled to dominate a
charter review co�ission. While they sponsored a ballot measure
that was passed by the people, they were warned that the wording
•. was not ciear or concise. Further, they failed to perform even
the most basic reporting requirements under state finance law.
We believe these are not the individuals that should be entrusted
with the redrafting of our city's most important document.
�
1
Exhibit B
� 462
The charter should be revised so as to quarantee a smooth
transition for the voter approved chanqes. Most importantly, the
charter should be revised for the purpose of better government
rather than to serve the immediate demands and agendas of cne
poiitical group.
� There has been a great deal of comment that the Elect �
Neighbor Committee was an attempt to replace the existing cit
council. If this is true, the Elect a Neighbor Committee shoul
have asked for a simple recall, such as the one presently unde
way by related qroups. If the Elect a Neiqhbor Committee' s
purpose is to properly establish a ward system, it should support
the Cape Girardeau Chamber of Commerce effort. For who better to
write changes than the group who wrote the charter in the first
place. The charter commission's members were elected by popular
vote and the document they produced has served this city well for
ten years. The charter commission members have qreat expertise
and understanding of the charter document and are best qualified
to make changes to the charter.
• In closinq, the city council cannot be party to an attempt
to have the charter changes drafted and revised to serve the
' political agenda of a few, but instead must see the charter is
revised to serve all people fai.rly. �� ,
. G� � �
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2
. 463
. THIS LETTER WAS DISTRIBUTED TO ALL COUIVCIL MEMBERS
PLANNING AND ZONING COMMISSION
City of Cape Girardeau
P. O. Box 617
Cape Girardeau, MO 63702-0617
December 17, 1992
To the Honorable Mayor and Council
of the City of Cape Girardeau, Missouri
Gentlemen:
At the regular meeting of the Planning and Zoning Commission on Wednesday,
December 9, 1992, the Commission reviewed and revised its list of priority recommendations
for street construction and design under the City's Capital Improvements Program. Attached
is the list for consideration for the 1992-93 program. This list was also attached to the
Commission's minutes from the December 9th meeting.
The Commission would like to express to the Council that the Commission strongly
recommends that the Council keep the construction of Lexington Avenue to Highway 177 and
the extension of North Sprigg Street to Lexington at the top of the priority list. We feel that
completion of these projects as soon as possible is imperative if we are to relieve traffic pressure
on the north side of the City and provide for proper growth and development in the future.
The other priorities should be more or less self-explanatory, with the possible exception
of the design priority for Bloomfield Road between Kingshighway (61) and I-55. We are
requesting that the City's engineering staff take at least an initial look at upgrading this section
by establishing a uniform roadway width of at least 24 feet and adding 18 to 24 inch curbs (roll-
back type) and gutters to clearly mark the road limits and control stormwater runoff. This might
be feasible, at relatively lower cost, at least as far west as Silver Springs. With continued
elimination of parking, this would greatly improve safety along this stretch. The section from
Silver Springs to I-55 will likely need to be developed to full collector standards at a minimum
and possibly arterial standards. One of the reasons for recommending examination of the design
parameters noted is that we feel, if practical, they may have application on other older asphalt
streets such as the existing section of Hopper Road from Mount Auburn west to the Kage
intersection and on Cape Rock Drive east of Bend Road.
During this process, the Commission also reviewed the City's Major Street Plan, adopted
on June 12, 1991, and determined that no significant changes are needed at the present time.
As always, we will continue to monitor development needs in the community and review the
plan at least annually.
/ 464
,•
'
MA,TOR SZ�tEET PLAN PRIORITIES
;
�-- � PLANNING AND ZONING CONIlVIISSION
� DEC�ER 9, 1992 �
1
� .
i
CONSTRUCTION
1. Lexington Avenue - New Construction
2. North Sprigg to Lexington - New Construction
3. Hopper Road - Mt. Auburn to Kage - New Construction
4. Perryville Road - Reconstruction
5. Highway 74 Connections - New Construction
6. Broadway - Clark to Caruthers - Recoastruction
ENGINEERING .
Desi�n Priorities
1. Bloomfield Road - 61 to I-55 (Upgrade)
2. Hopper Road - West of Kage Road (Reconstruction)
3. Vantage Drive (New Construction)
�
�
. �
THIS LETTER WAS DISTRIBUTED TO ALL COUNCIL MEMBERS 465`
FIRST PRESBYTERIAN CHURCH
Broadway at Lorimier
P.O. Box 477
Cape Girardeau, MO 63702-0477
314-335-2579
R. Charles Grant
Minister
December 21 , 1992
Members of City Council
re : proposal for riverboat gambling
;.. �
I am writing to you on behalf of the members and officers of First
Presbyterian Church , Cape Girardeau. The First Presbyterian Church
has served our city from the corner of Lorimier and Broadway for 157
years . In addition to being a church we are one of the larger
property owners and businesses in downtown Cape Girardeau. Our
property acquisitions and the beautification of our "east lawn" are
only some of the more recent manifestations of our longstanding
commitment to downtown Cape Girardeau .
Following the general election in November , the Session (governing
body) of First Presbyterian Church discussed the prospect of riverboat
gambling here in Cape . The consensus of our elders was and is we are
adamantly opposed to such ventures for MORAL, ECONOMIC, and PRACTICAL
reasons .
From a MORAL perspective , gambling threatens the fabric of our liEe as
a community. Gambling promises something for nothing . Gambling
produces many more "losers" than "winners" . Gambling produces little
more than broken dreams .
Secondly, gambling doesn' t make sense from an ECONOMIC perspective.
The economic benefits dervived from the introduction of riverboat
gambling in other communities has been mixed at best . As an industry,
gambling produces nothing but gamblers . Do we really want to market
Cape Girardeau as a quality community for raising families - and a
great place to gamble with your family on Friday nights?
And finally, consideration of riverboat gambling at this time could
have serious (negative) PRACTICAL consequences for our community. In
the next few months our Schools will be pressing for a much needed
bond issue and tax increase. However one feels about the merits of
the proposals at hand, they deserve the community' s full and undivided
attention . I believe a special election in early March would be
counter-productive to the addressing of our public school needs.
In sum, I would like to assure the Council that First Presbyterian
Church will actively join with other churches and moral leaders in
OPPOSING the introduction of riverboat gambling in Cape Girardeau .
Therefore , I urge the Council to exercise the leadership entrusted in
you by NOT taking any action that would facilitate riverboat gambling
in Ca Gi ardeau.
R. Charles Grant
. ZHIS T F'rr'F'R WAS DISTRIDiTi'ID Tp r•T• p�7�IL �,� 4 6 7
f;�
�.��
�� ,- _-
Colonial �-
Cape Girarrleau Founrlation
December 21, 1992
ti�;.'
City Councilperson Melvin C. Kasten
Cape Girardeau City Hall
401 Independence
Cape Girardeau, Missouri 63701
Dear City Councilperson Kasten:
We would again like to thank you for your time and consideration on behalf
of the Colonial Cape Girardeau Foundation, especially your unanimous vote to
set up a Special Task Force. We, the Foundation, Look forward to working
closely with you and the Special Task Force to find the means by which
funding for this very worthy project can be obtained.
Please find the enclosed forms completed by those who have agreed to be
members of the Special Task Force. There are two additional forms which you
shall receive from individuals who most assuredly wish to be on the Special
Task Force but for personal reasons could not complete the required form until
later in the week. They are Mr. Milton George, R. Ph., who is out of town, and
Mr. Jay Knutson, ( a member of the Park Board, whose form is on file in the
City Managers Office, but a new one is being completed for the Special Task
Force ) who has been ill. We urge you to collectively or individually, to add to
this list or, if it meets your approval, pass it as is. We look forward to your
decision on this matter this evening, so that the Special Task Force may be
charged with their duties at the January 4, 1993 City Council meeting.
Again, thank you for your time and consideration in this matter of
importance to both our Foundation and a great number of residents of Cape
Girardeau.
With best wishes for the holidays, we remain
Sincerely,
� The Colonial Cape Girardeau
Foundation
Enclosures
DEM:pms
Post Office Box 34 • Cape Girardeau, Missouri 63702-0034 • (314)339-1992