HomeMy WebLinkAbout03/23/1979 City Council 000847
MINUTES OF THE CITY COUNCIL
OF THE
CITY OF THE COLONY, TEXAS HELD ON
MARCH 23, 1979
An Emergency Called Session of the City Council was called to order with
the following members present:
Sandra Shearer Mayor Pro Tem
Clint Davis Councilman
Linda A. Adams Councilman
Gary Shipman Co tncilman
and with Mayor William J. Longo absent; however, a quorum was established.
1. RECEIVE A REPORT FROM JOE NALLS, RATE CONSULTANT FOR THE CITY
Mr. Joe Nails briefed the City Council on the status of the Lone Star
Gas rate appeal case. Mr. Nalls stated that Lone Star Gas is now asking
for 3]~ revenue increase based on the present number of customers. After
analyzing the data from the rate section of the Lone Star Gas Financial
report which is filed and certified with the Railroad Commission, Mr. Nalls
stated that he did come to the conclusion that their expenses indicated
that they did need more revenue. Mr. Nalls' recommendation is that they
be allowed a 20~ increase based on the present number of customers. There
followed a lengthy and detailed discussion concerning this matter.
2. CONSIDERATION OF APPROVING AN EXHIBIT ESTABLISHING RATES FOR THE LONE
STAR GAS TO BE PRESENTED TO THE RAILROAD COMMISSION
Mr. Na!ls stated that evidence must be presented from both sides and it
is his and Mr. Louis Nichols, attorney for the City, suggestion that in
asking for this 20%o increase that the following rate structure be presented
also:
City Exhibit No. 12
Witness
March, 1979.
Town oI' The Colony, Texas
Comparison of Lone Star Gas Company's Present
Appealed for and Suggested Net Rates @ Base Cost of $1.9238
Present Set On 5/16/77 O0mpany Appealed(l) City Suggested
Schedule of Net for 33.41% Increase 20.40%o Increase
Consumption ($1.3488~CF Base) ($1.9238/MCF Base) ($1.9238/MCF Base)
per MCF per MCF per MCF
(3) Summer Winter Summer Winter
Customer Charge - - $3.00 $3.00 $3.00 $3.00
For the First (2)
1,000 Cuft $3.50 2.7723 3.0223 2.424 2.674
For All Over
1,000 Cuft 1.835 2.7723 3.0223 2.424 2.674
Notes:
(1) Company applied for 48.3~% rate increase, or increase of
$33,593 in Gas Sales Revenue, and $3,916 in Sez~¢ice Charge
Revenue on August 22, 1978, when the fuel base cost was
$1.7636/MCF and the Adjusted Revenue for 12 months was
$77,571.
(2) Increased from $3.00 on December 18, 1978.
(3) Company applied for $6.00 Customer Charge on Commercial
Consumption with the same Commodity Charge as applied to
residential use.
000348
Councilman Davis stated that he was of the opinion that an approximate
7% increase in rates is in compliance with President Carter's economic
guildelines and should be the maximum recommended by the City. Coucilman
Shipman and Adams agreed with the concept but felt this position wo~2d not
be received favorably by the Railroad Commission. Councilman ~Shipman moved
that the above described rate structure be presented by the attorney for
the City at the interim rate hearing to be held on March 28, 1979. After
a lengthy discussion, Councilman Adams seconded the motion. Prior to
voting the Council directed Tom Hart, City Manager to instruct Mr. Nichols
to stress in his plea that a 7~ rate increase is recommended by the The
Colony and that a 20% increase is the maximum amount of rate increase.
The motion was passed by the following roll call vote:
Ayes: All members present voted aye
Noes: None
There being no further action to be taken by the Council, Councilman
Davis moved that the meeting be adjourned. Seconded by Councilman Adams,
the motion was passed by the following roll call vote:
Ayes: All members present voted aye
Noes: None
Mayor Pro Tern Shearer adjourned the meeting at ll:00 A.M.
Sandra Shearer
Mayor Pro Tem
Carroll
/y Secretary