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HomeMy WebLinkAbout1976-01-30 - Special City CouncilCITY COUNCIL MINUTES SPECIAL SESSION - FRIDAY JANUARY 30, 1976 - 10:00 a.m. CHAMBER OF THE CITY COUNCIL CITY HALL, STEPHENVILLE, TEXAS The City Council of the City of Stephenville, Texas, met in Special Session, Friday, January 30, 1976 at 10:00 a.m., with Mayor Donald R. Jones present and presiding. Councilmen Jim Chambers, W. M. Irwin, Cal McGee, Charles Riggins, Raymond Anderson, Jesse Sexton, Larry Hammett and Neal Guthrie being present. City Administrator Marshall Shelton, City Attorney Joseph Chandler, Chief of Police Mike Watkins and City Secretary Joyce Pemberton also being present. Others attending the meeting were representatives of Lone Star Gas Company J. W. Beck, local manager in Stephenville, Doyle Geiser, Regional Manager from San Angelo and Jim Hinds from Fort Worth. Mayor Jones called the meeting to order and advised the Council that this Special Session was scheduled to consider the Lone Star Gas situation on which one prior meeting was held (January 20th) since passage of the ordinance on December 2, 1975. Mayor Jones reminded the Council that in the prior meeting of January 20, 1976, the Council had requested Lone Star Gas to furnish the Council some information and some answers to questions concerning La -Voca Gathering Company surcharge that was passed on for the November and the bills rendered for January and for December which would be passed on in the February bills, questions concerning reading dates and billing dates prior to the January bills and also information concerning the break down of the various charges being itemized on each consumer's statement. Mayor Jones then advised that he had received information from Lone Star Gas that residential and commercial customers in Stephenville will receive credit on their February bill that includes the proportionate part of the La -Voca surcharge that appeared on the January bill for gas used after the rate increase was approved on December 2, 1975 and also included will be the November charge that was made, due to late meter readings and this would vary according to the number of days. There was then lengthy discussion with representatives of the Lone Star Gas Company, J. W. Beck, Jim Hinds and Doyle Geiser. Mr. Beck did state that he had made a mistake when he advised the Council in the meeting of December 2 that the rate increase would include the pass on charge paid to La -Voca -Gas Company. There was further discussion about hardship cases and what might be done if some of the people on welfare were not able to pay the large bills at the time of receiving them. After further discussion, Mayor Jones explained that at this point the Council had the alternative of rescinding the contract of the ordinance that was passed on December 2, 1975 and that the result of this might be determination by the Railroad Commission would be that under Docket No. e 588 ther would be imposed an automatic adjustment on the City. I£ the present contract is rejected, the Council does not know that this is a predetermined thing and that the Railroad Commission would uphold the rates. On the other hand there is a possibility that if the ordinance is rescinded, the Railroad Commission, after we had prepared our case, might not stay with the rate as recommended and they could be lowered. Also there might be the possibility that the application filed with the Railroad Commission by Lone Star Gas would be for a higher rate if the ordinance is rescinded; application of Lone Star Gas Company could be'based on the year 1975 rather than 1974 which would be a higher base year. In addition, by rescinding the ordinance the City would be faced with the cost of contest, rate experts and attorneys fees. After still more discussion, Councilman Chambers stated, that in light of the presentations that have been gone over in the last two Council meet- ings and the representation made by local gas company manager Beck that the increase would include the pass on charge, that he felt the Council was obligated on behalf of the people to discuss with the Railroad Commission, to contest Lone Star's increase and he would make a motion to rescind the ordinance of this Council dated December 2, 1975 and which has been the subject of this meeting and the discussion had here today. Councilman McGee seconded this motion. Mayor Jones called for discussion. Councilman Guthrie gave the follow- ing as his reasons for rescinding the ordinance: (1) billing problems, (2) poor timing, (3) excessive increase, (4) misunderstanding of the amount of the increase and (5) perhaps some misrepresentation and misunderstanding of the ordinance. Councilman Irwin commented that none of the Council qualified as gas rate experts and he did not know how much investigation was made when a rate expert was called in to advise the City and in his opinion, the Council should rescind the ordinance and start over. - Mr. Beck stated that he felt the gas company had dealt fairly and had given the information requested and in writing and that they had tried to interpret it to the best of their knowledge and it was their.thinking that it was received as discussed. He also stated that it would cost both the gas company and the City and everybody will lose when the matter goes to the Railroad Commission. Councilman Anderson then stated that in his opinion the Council and the people were misinformed in the matter and this may have caused the misunderstanding. Mr. Geiser explained that the present rates are in effect and if the ordinance is rescinded, the gas company will put up a bond and will con -' tinue to bill at the present rate until the determination of the Railroad Commission, and that therefore, no consumer would receive lower bills if the ordinance is rescinded. Mayor Jones responded to this statement that it was his understanding, that an interim rate, upon appeal, is set by Railroad Commission and in the event it finds, finally, that the rate was excessive then Lone Star Gas Company is required to refund with interest to each consumer -. Mr. Geiser agreed. Councilman Riggins stated that he felt that at the meeting of December 2, 1975 when this ordinance was passed, if he had known at the time the gas bills would be doubled or tripled, he would not have voted for the ordinance at that time. Council Irwin called for the question on the motion. Such motion being put to a vote it carried unanimously without dissenting vote. Ordinance is attached hereto and made a part of these minutes. There being no further business, Mayor Jones adjourned the meeting at 12:30 p.m. Mayor ATTEST: Joyce Pemberton, City Secretary AN ORDINANCE RESCINDING PRIOR ORDINANCE PASSED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE ON DECEMBER 2, 1975 DETERMINING SERVICE RATE TO BE CHARGED FOR SALES OF NATURAL GAS TO RESIDENTIAL AND COMMERCIAL CONSUMERS WITHIN THE CITY LIMITS OF STEPHENVILLE, ERATH COUNTY, TEXAS BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE: Section One That certain ordinance passed by the City Council of the City of Stephenville, Texas, on December 2, 1975 fixing and determining general service rates to be charged for natural gas to residential and commercial consumers within the city limits of Stephenville, Texas, is hereby rescinded, cancelled and in all things set aside and held for naught. Section Two It is hereby found and determined that the meeting at which this ordinance was passed was open to the public as required by Texas law, and that advance public notices of the same, place and purposes of this meeting were given. - PASSED and APPROVED on this the 30th day of January, 1976. Mayor