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Home My WebLink About09/21/1978 City Council 000252 MINUTES OF THE BOARD OF ALDERMEN OF THE CITY OF THE COLONY, TEXAS HELD ON SEPTEMBER 21, 1978 A Regular Session of the Board of Aldermen of the City of The Colony, Denton County, Texas, was called to order with the following members present: William J. Longo Mayor Linda A. Adams Alderman Sandra Shearer Alderman Gary Shipman Alderman Gene Pollard Alderman thus, a quorum was established. There being no announcements to be made, Mayor Longo moved to Agenda Item IV and asked for corrections to the minutes of the Regular Council Meeting held on September 7, 1978. Alderman Pollard stated that on page one in the para- graph dealing with changes in the municipal budget for the year 1978/79, the word "additional" should be inserted to reflect that Municipal Court revenues will be increased by $2,500 to a total revenue figure of $10,600. Alderman Adams moved that the minutes be approved as corrected. Seconded by Alderman Davis, the motion was passed by the following vote: Ayes: Ail members present voted aye Noes: None Alderman Adams moved that the minutes of the Work Session held September 14 ,1978 be approved as w~iiten. Seconded by Alderman Pollard, the motion was ~assed by the following vote: Ayes: Alderman Davis, Adams, Shearer & Pollard Noes: None Abstention: Alderman Shipman There being no reports or old business to be considered by the Council, Mayor Longo moved to Item VIII, New Business. A. PUBLIC HEARING 1. Lone Star Gas Rate Increase Request The motion to open the hearing was made by Alderman Adams, seconded by Alderman Shearer and passed by the following vote: Ayes: Ail members present voted aye Noes: None Mayor Longo introduced Mr. Floyd Cunningham, the Manager of the Frisco District of Lone Star Gas. Mr. Cunningham presented Lone Star Gas' request for a increase which will be a $37,509 increase in revenue. Mr. Cunningham stated that the cost of gas for the first thousand cubic feet will be four dollars and three dollars and thirty six cents for every thousand cubic feet thereafter. The cost of a service charge will be raised from $13.50 to $16.00. The greatest increase will be for the reconnect charge, which will be raised from $7.50 to $20.00. Mr. Cunningham stated that the average Lone Star Gas customer uses 8,000 cubic feet per month which is an average monthly cost of $27.00. Alderman Pollard asked how this rate request compared with request made in other cities. Mr. Cunningham answered that The Colony was set at a low rate and the company presently has a 2.~ loss on the rate of return. Alderman Pollard felt that with the expansion of The Colony., there should be a rate decrease rather than increase. Mr. Hart, City Administrator, asked what rate of return were they expecting from this increase. Mr. Cunningham answered that they expected a 8.70~oo rate of return. There followed a lengthy discussion of the increase requested and its justification. Mr. Pollard asked what the rate of return percentage was in other cities. Mr. Cunningham said he did not have this information~ with him. At this time, Mr. Hart recommended that a Work Session be scheduled and a rate analyst be present to discuss in detail this request and answer specific questions of the Council. Alderman Davis was concerned with effect of interstate gas rates on local gas rates. Alderman POllard added that Federal controls keep the interstate rates low. Alderman Pollard questioned the impact of the $2~,000,000 La Vaca Gathering litigation on local gas rates. Alderman Pollard stated that he would also like the analyst to compare the cost of gas vs. electricity and the fuel adjustment 0002 3 charge levied by Texas Power & Light. The Council was interested in learning the rate T, P & L pays for fuel. Mr. Bob Brown, a member of the audience, was recognized and requested that the rate analyst make a comparison of the cost of one thousand cubic feet of gas and a kilowatt hour of electricity. Another area of concern to Alderman Pollard was operational costs and if reduction of these costs was ever considered by Lone Star Gas. At this time, Alderman Shearer moved that the hearing be closed. Alderman Davis seconded the motion. Prior to calling a vote, Mayor Longo recognized Chris Fabian who asked the cost to disconnect gas and convert to electricity. Lowell Tuilis asked w~at recourse Lone Star Gas has if the City denies the rate increase. Mr. Cunningham answered that they would appeal the decision to the Railroad Commission and the Commission would arbitrate the dispute. There followed another lengthy discussion as to procedure and ~t~stifi_.cation of rate increase. There being no further discussion, Mayor Longo called for a vote on the motion to close the hearing. The motion passed by the following vote: Ayes: Ail members present voted aye Noes: None A five minute recess was called prior to proceeding to the second item of New Business. 2. Consideration of an ordinance suspending the rate increase requested by Lone Star Gas for a period of 120 days. Alderman Shearer read the following caption of the proposed ordinance: AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, SUSPENDING THE EFFECTIVE DATE OF THE PROPOSED REVISIONS OF RATES AND SCHEDULES OF LONE STAR CAS COMPANY FOR ONE HUNDRED AND TWENTY DAYS (120) FROM SEPTEMBER 27, 1978; PROVIDING THAT THE RATES OF SAID PUBLIC UTILITY SHALL REMAIN UNCHANGED DURING THE PERIOD OF SUS- PENSION: AND PROVIDING FOR NOTICE HEREOF TO SAID PUBLIC UTILITY. Mr. Hart recommended that the Council pass this ordinance to allow for further study of this request. Alderman Shearer then moved that the ordinance be approved. Seconded by Alderman Adams, the motion was passed by the following vote: Ayes: Ail members present voted aye Noes: None 3. Consideration of an ordinance approving and adopting a budget for the City for the fiscal year Oct. 1, 1978 and September 30, 1979. Alderman Pollard stated that the Council feels that further study is needed on the combined City/MUD tax rate prior to passage of the City budget. Alderman Pollard moved to table this agenda item. Seconded by Alderman Adams, the motion was passed by the following vote: A~es: All members present voted aye Noes: None 4. Consideration of an ordinance levying the Ad Valorem Taxes for the year 1978. Alderman Pollard presented the following ordinance: AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, LEVYING THE AD VALOREM TAXES FOR THE YEAR 1978 AT A RATE OF $ PER ONE HUNDRED DOLLARS ($100.00) ASSESSED VALUATION ON ALL TAXABLE PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY AS OF JANUARY 1, 1978; TO PROVIDE REVENUES FOR THE PAYMENT OF CURRENT EXPENSES AND TO PROVIDE AN INTEREST AND SINKING FUND ON ALL OUTSTANDING DEBTS OF THE CITY, PROVIDING FOR DUE AND DELINQUENT DATES TOGETHER WITH PENALTIES AND INTEREST; AND DECLARING AN EFFECTIVE DATE. Alderman Pollard then moved that t~is agenda item be tabled for further study by the City ~ouncil. Seconded by Alderman Shipman, the motion was passed by the following vote: Ayes: All members present voted aye Noes: None OOO254 5. Consideration of a resolution stating the estimated current city population. Mr. Hart explained that a minute resolution was needed to establish an estimated current city population to send to the Texas Highway Commission. The Commission will then be able to erect city limit signs, explained Mr. Hart. Mr. Hart asked the Council to establish the factor to be used as the average number per home and he recommended the figure of 2.95. After a brief discussion Alderman Pollard resolved that the City adopt the factor of 2.95 per home based on the present number of water connections of two thousand four hundred and twenty-four (2,424) which shall establish the present population at 7,150. Seconded by Alderman Adams, the resolution was passed by the following vote: Ayes: All members present voted aye Noes: None 6. Consideration of approval of all bills over $50.00 Mayor Longo presented the bills over fifty dollars to be approved for payment. Mr. Hart also recommended for approval the payment of Huffines in the amount of $573 and the payment of the statement presented by Mr. Kimberling, city · mechanic in the amount of $246.08. Alderman Shipman then moved that the bills be approved for payment. Seconded by Alderman Davis, the motion was passed by the following vote: Ayes: All members present voted aye Noes: None Mayor Longo asked for citizen input. There being no citizen input nor further action to be taken by the Council, Alderman Adams moved that the meeting be adjourned. Seconded by Alderman Davis, the motion was passed by the following vote: Ayes: All members present voted aye Noes: None Mayor Longo adjourned the meeting at 9:3I P.M. William J. Longo/ Mayor / Ja~ C arnoll C i~ Secretary