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.