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05/29/1984-CC-Minutes-SpecialMINUTES: City Council (Special Called. Meeting) May 29, 1994 PRESENT: Mayor Armstrong, Carolyn Adkins, H. W. Thomas, Freddy Inman, and Benny Bridges ABSENT: Danny Spindle and Mary Jo Stover UTILITY BOARD MEMBERS PRESENT: C. G. McNeill,. John Coker, and Herbert Arledge OTHERS PRESENT: Bill Thogmartin, Shelton Cook, Lloyd Henderson, and Etta Stogsdill Mayor Armstrong opened the meeting with a prayer. 1. Mayor Armstrong noted to the council that Marland Knight was nominated to serve on the Utility Board.; however, he cannot serve.- Mayor Armstrong noted two names had been mentioned to serve on the board and they were Jerry Jenkins and John Anderson. Inman nominated Jerry Jenkins, seconded by Adkins. Vote carried. Lloyd Henderson contacted Jerry Jenkins during meeting. 2. Bill Thogmartin spoke for Lone Star Gas Company and their request to consider rate increase and adopt the ordinance. Thogmartin and Shelton Cook told the council they were present to answer questions from the council. Mayor Armstrong mention that Ralph Cole could not be present at the meeting. However, Mr. Cole had sent test year 81 book which was noted that some items denoted that depreciation accumulation was less than 83. Thogmartin stated that old pipe had to be replaced. Questions were raised by council why the depreciation on this pipe was down rather than being raised. Mr. Thogmartin explained that the new installation was financed for a longer term. Longer term financing makes the payments lower. Lone Star has replaced the old steel pipe with plastic pipe upgrading pipeline in Sanger as necessary. Discussion in regard to meters. McNeill asked how many years this was effective. Thogmartin mentioned 25 years on the franchise. McNeill wanted to know who paid the freight -- the User pays. Council inquired as to what would happen should they turn this request down. Thogmartin informed the council that Lone Star then had two options: (1) they could refile or (2) appeal to the railroad commission. Coker asked if the railroad commission had a commissioner to represent a city. Cook mentioned they do have someone there which represents a city. Thogmartin mentioned it cost approximately $20,000 to appeal which is expensive to the city as the User, after appeal was completed. Discussion in regard to percentage. Inman spoke in reference to investment on Lone Star Gas Co. Thogmartin noted investment was necessary for growth. Bridges spoke investment benefits Lone Star. Thogmartin said number one (#l) was safety. Armstrong asked Thogmartin if there were any major work to be done in Sanger. Thogmartin said as far as he knew there was no major work. Brief discussion in regard to turn -on and turn-off fees. Bridges mentioned all consumers should pay at the same consumption level. Arledge questioned how did they arrive at the reduction rate. Discussion. Adkins asked why was it a meter rental, why not a flat rate. Lloyd asked now many cut -on and cut-off customers. Thogmartin stated normally 40 customers. Discussion on base rate and MCF. Thogmartin mentioned based on growth revenue--$35,287, 8.81% would give the $18,000. Discussion. Bridges stated: raise base rate from $5 to $6; leave 1 & 2 MCF as they are $18,000, based on 732 residents, 18,000 of that 359000 -- give them a 2% increase. Thogmartin mentioned the co -sac agreement which is based on months, consumption, number of consumers, etcetera which some cities have. -- Jerry Jenkins came into the meeting to join the Utility Board. -- Discussion. Return of investment - $35,000 - 10.51%, $18,000 - 8.2%, currently, 5.76% - 2 way. 8.81% - return of investment, 2% - rate increase, $17,000 - MCF charge and $18,000 - customer charge. 50 Bridges elected to give Lone Star 8.81% increase. Seconded by Inman. $18,000 customer charge plus 2% rate increase in commodity charge. Approximately $8,297 in commodity charge - 2% charge. Motioned and seconded. All in favor. Council elected to clarify this motion. Bridges stated flat rate make it $6 rather than $4 residential, leave lst level of MCF as they are plus a 2% rate increase in commodities. Commerical: $10.00 Winter- $6.00 Summer. Bridges commended Lone Star Gas representatives in the way they handled this request for a rate increase. 3. Lone Star mentioned their conservation service cost informed the council that Program. This program is Lone Star check their home request to change its residential recovery charge. Thogmartin it now was a Federal Mandated available to all customers to have to see how to save energy. Thogmartin informed the council the fee was $15.00. All consumers pay for this charge - surcharge on their bill. John Coker mentioned he had this survey taken at his home and was very pleased with the thorough investigation they did for him. Motion was made by Inman to adjourn the meeting. Bridges gave the second. Voted unan. Meeting adjourned. City Secretary Mayor MINUTES: City Council June 4, 1984 PRESENT: Mayor Armstrong, Benny Bridges, Freddy Inman, H. W. Thomas, and Carolyn Adkins ABSENT: Danny Spindle OTHERS PRESENT: Lloyd Henderson, Mary Jo Stover, Bi11 Rice, Arnold Lynch, Alvin R. Keefer, C. G. McNeill, Duane Tucker, Dick LaDul, Jan Roche, Tim Tumulty, Richard Allen, Debra McGuire, Kammie M. Patten, Bob Roberts, Allie Davenport, Herbert Arledge, Michael Robinson, Lillie Belle Horst, John W. White, and Mrs. Bob Roberts. Mayor Armstrong called the meeting to order and called on Lloyd Henderson to give the invocation. The pledge of allegiance to the flag was given. 1. Five bids were received on the street improvements project. They are as follows: Company Bid Amount Adkins Bros. Equipment, Inc. $285,669.00 Abcom Paving, Inc. 302,725.00 Souter Paving 324,325.00 Austin Paving 2889254.00 Mariott Bros., Inc. 279,500.00 All bids were given to Hunter Associates, Inc. to be checked. Bids to be awarded June 18, 1984.