HomeMy WebLinkAbout06/01/1979 City Council 000384
MINUTES OF THE CITY COUNCIL
OF THE
CITY OF THE COLONY HELD ON
June 1, 1979
A Special Session of the City Council was called to order with the
following members present:
Richard Turner Mayor
William J. Longo Councilman
Linda A. Adams Councilman
Chris Fabian Councilman
and with Councilman Sandra Shearer and Councilman Gary Shipman not
in attendance due to business matters; however, a quorum was
established.
3. CONSIDERATION OF ADDITIONAL STAFF.
Mayor Turner told the Council that agenda item three would be con-
sidered first as Mr. Nall had not arrived. Janice Carroll, City
Secretary asked the Council to consider hiring Jane Barton as a
full time employee in the position of bookkeeper. After a lengthy
discussion regarding the duties of this position, the status of
the budget, and possible alternatives, Councilman Fabian moved that
the City retain the bookkeeping position as a part time employee.
Seconded by Councilman Adams, the motion was passed by the following
roll call vote:
Ayes: Ail members present voted aye.
Noes: None
1. RECEIVE BRIEFING FROM JOE NALL, RATE CONSULTANT TO THE CITY,
REGARDING THE GAS RATE CASE.
Mr. Joe Nall, rate consultant for the City, briefed the Council
regarding the financial changes since the originally requested rate
increase.
2. CONSIDERATION OF ESTABLISHING A GAS RATE.
After a recess for lunch, the Council reconvened to consider the
establishment of a gas rate. Also present for this agenda item was
H. Louis Nichols, attorney for the City and the following Lone
Star Gas Company representatives: Floyd Cunningham, District Manager;
David Gambill, attorney; Doyle Geisen, Director of Regional Operations;
Logan Wilson, Regional Manager; and Tom Walling, McKinney District
Manager. Mr. Gambill gave a brief background of this case. The
Lone Star Gas representatives maintained that since the passage of
the city ordinance establishing a gas rate on January 11, 1979, that
the gas company has been operating with an ongoing revenue deficiency.
Mr. Geisen proposed that a surcharge be implemented at a rate of
five cents per one thousand dollars until this deficiency has been
recouped. Mr. Geisen assured the Council that monthly certified
statements would be provided to the City. There followed a discussion
of this proposal, the amount of this deficiency and the payment of
the corresponding expenses. Mr. Geisen tOld the Council that they
could have the amount of this revenue deficiency within a week to
ten days for the Council. Mr. Nall stated that it would be ten to
fifteen thousand dollars. It was understood and agreed to that Lone
Star Gas would pay Mr. Nail's fees, all regulatory expenses, and
Mr. Nichols' expenses which were estimated at approximately $2,000.
The Lone Star Gas representatives guaranteed this rate for one year.
Mr. Geisen assured the Council that Lone Star Gas would not have to
file for a rate increase of this size in the future. At this time,
Councilman Adams moved to approve for Lone Star Gas a proposed
increase in the amount of $30,785, and a surcharge of five cents per
$1,000 to recoup the deficiency incurred from January 11, 1979 through
the effective date of new rate with it being further agreed that this
00088,5
rate will be in effect for a period of one year and Lone Star
Gas will pay the City Attorney's fees, and with the understanding
that this motion is contingent on action by the Railroad Commission.
Seconded by Councilman Fabian, the motion was passed by the follow-
ing roll call vote:
Ayes: Ail members present voted aye.
Noes: None
Mr. Geisen assured the Council that the ordinance would be ready
as soon as possible.
At this time, there being no further action to be taken by the
Council, Councilman Fabian moved that fhe 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 Turner adjourned the meeting at 2:05 p.m.
Urner ~! ~,
Mayor