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HomeMy WebLinkAbout1975-08-26Regular Meeting Euless City Council August 26, 1975 CALL TO ORDER The regular meeting of the Euless City Council was called to order at 8 :00 P. M. in the Council Chamber'_ of Euless City Hall by Mayor Harold Samuels. Members present were Mrs. Willie Mae McCormick, Messrs. Ray Ozebek, Glenn Walker, Charles Hunt, and Wayne Wright. Also present were City Manager W. M. Sustaire, City Secretary Della Houy, and City Attorney Bob McFarland, VISITORS Visitors present are as follows: Messrs. Don Perkins, Walter Yeager, Virgil Hume, G. 0. Chipman, Don Harris, Harold Copher, Charles Page III, Tommy Barnes, Tom Osburn, Ken Murph, Billy F. Walker, Hal Ferguson, James D. Griffin, Richard Thomes, James C. McKinney, Dick Wells, Lynn Shackelford, George Buynes, Paul Thomes, Jay Bailey, 0. Bailey, Charles Mitchell, G. Kinler, Jerry Hinshaw, Gary B. Smith, Sam Ladymon, George Buynum, Rik Sowell, Carl Tyson, J. L. Osborn, Bobbie Leonard, W. Roy Trahan, James Wood, S. E. Evans, Tom Bender, Jack Olsen, Darwin Hultgren, Connie Campbell, Bill Byers, Frank Douglass, Lenard Sowell, Ronald Young, Joe Hendley, Mark Hendley, David Patterson, Al Allred, Matt Poslick, J. R. Hampton, George Guynes, and Scott Samuels; Mesdms. Betz Potthoff, John McDowell, Willie Charlton, Don Harris, Billy Hemphill, Alice Bavol, Sharon Voss, Patricia Gilliland, Peggy McReynolds, Betty Dickinson, Richard Thomes, Harriet Mitchell, Ruth Spain, Wm. Longergan, Jerry Hinshaw, Gary Smith, Tommie Samuels, Diane Page, Deidra Early, Elizabeth Wood, Marvin Powers, Jerry Henning, Al Slovacek, G. Kinler, Cathy Knappenburger, Beverly Evans, Debbie Millican, Frank Douglass, Maxine Hendley, Evelyn Poslick, Betty Sees, and Barbara Guynes. INVOCATION The invocation was given by Mr. Charles Hunt. APPROVAL OF MINUTES The minutes of the regular meeting dated August 12, 1975 were approved as written. I CONTINUATION OF PUBLIC HEARING PERTAINING TO RATE INCREASE REQUESTED BY TEXAS POWER & LIGHT COMPANY - MR. IVAN GREGORY Mayor Samuels recognized Mr. Ivan Gregory who stated he is presenting visual aids to show why Texas Power and Light 90 (Page Two, Regular Meeting, Euless City Council, August 26, 1975) should not be granted the rate increase. Mr. Gregory compared a residential electric bill from Texas Power and Light, Dallas Power and Light, and Texas Electric showing Texas Power and Light with a higher cost with the same KWH. Mr. Gregory stated that customers of Texas Power and Light are paying an inflated rate for fuel adjustments due to unrestricted fuel adjustments by the company. Mr. Gregory showed the fuel value rate base work sheet used by Texas Power and Light and Mr. Gregory stated the facts show the figures present estimated figures. Mr. Gregory stated these estimates of figures are in contrast to State laws, and he believes Texas Power and Light should abide by the rules. Mr. Gregory stated that the rate base for Texas Powerand Light is system wide and state law provides that the rate base should be based on the property and equipment used to provide electricity for that City. Mr. Gregory stated that the Federal Government is proposing a tax cut to corporations and the Federal Government will make up the deficities in converting plants to different types of fuel other than gas or oil. Mr. Gregory stated that Texas Power and Light presented their proposal in a cloud of confusion; that they told the people what they wanted them to know. He further stated that Texas Power and Light threatened the City with a law suit if they do not comply. Mr. Gregory stated he suggests Texas Power and Light correct their proposal and present a proposal with a local rate base breakdown. Mr. Gregory stated if the Council has the documents as required by the Federal Power Commission, the Council could make a better decision. Mr. Gregory stated the Council has four (4) alternatives -- to reject the proposal and let Texas Power and Light sue the City for the rate increase, -- engage a consulting firm to make a survey pertaining to local needs, -- table the request and adopt a sit and wait attitude until the report from Waco by Touche -Ross has been received, -- or the Council could reject the proposal and send it back to Texas Power and Light and have them present supporting data in order for the Council to make a decisionthat the request is justifiable. Mr. Gregory stated he is recommend- ing the later proposal. Mrs. McCormick stated she would like a copy of the material Mr. Gregory presented. Mr. Gregory presented a copy of pages of the Federal Regulations of the Federal Power Commission to the City Secretary to be filed at City Hall Mayor Samuels ask if there were others who would like to speak against the rate increase; there being none, he re- cognized Mr. Charles Page, III, Manger of Texas Power and Light. Mr. Page presented graphs indicating the rise in the cost of fuel over the past several years. Mr. Page stated that Texas Power and Light is the only company in Texas that has lignite plants in construction and one in operation, and the only one with a nuclear plant in 91 (Page Three, Regular Meeting, Euless City Council, August 26, 1975) in construction. Mr. Page stated the need for construction of these plants is because in ten (10) years the company will not have gas or oil to burn. Mr. Page stated the customer is using more KWH today than they did last year. Mr. Page stated that in order to comply with EPA regulations it is costing them the equivalent of the amount of electricity it would take to supply a city of 60,000 people for one (1) year. Mr. Page stated that there are three (3) utility companies in the United States that have a Triple A rating and they are Texas Power and Light, Dallas Power and Light, and Texas Electric. Mr. Page presented a graph indicating the decrease in the cost per KWH since 1916. Mfr, Page stated the Council had a public hearing lasting two and a half hours and a work session that lasted four (4) hours with only two (2) citizens present.. He further stated he has answered all questions the Council or the customer has asked and has had available any reports that anyone has requested. Mr. Page stated it is the responsibility of the customers to control the consumption of KWH they use and it is the responsibility of Texas Power and Light to have the power available to the customer. Mr. Gregory stated he would like to know the companies furnishing gas and oil to Texas Power and Light and the cost to them for this fuel. He further stated that, at the cost of construction of a nuclear plant, Texas Power and Light could build lignite plants and have them in operation now. Mr. Gregory stated Mr. Page has not offered anything new and he suggests the Council reject the proposal and have Texas Power and Light present a new proposal with a local rate base. Mr. Hal Ferguson, 101 Walnut Way, stated the elctric company advertised for the customer to use electricity as it is cheap and six (6) months later they ask the customer to quit using electricity. He further stated that he has not seen a rate reduction in the fuel cost and he would like to know the actual fuel cost to Texas Power and Light. Mrs. Mary Ann Walker, 104 Walnut Way, stated Mr. Gregory said the Utility Commission is requiring a sixty per cent (60 %) on original equipment and a forty per cent (40 %) on replacements and this will be a requirement on all utilities. Mrs. Walker stated she would like to see the figures showing the percentage of cost outlays going to the construction of the nuclear plants. Mrs. Helen Blaschke, 817 East Cliff, stated that last summer her electric bill ran approximately $44.00; that they have reinsulated their house, and installed ventilators in the roof, and her last bill was $144.00. 92 (Page Four, Regular Meeting, Euless City Coumcil, August 26, 1975) Mr. Page stated the fuel cost is pre- sented to the City each month, and he w i l l be glad to varify this figure any month for the customer. Mr. Page stated that the fuel cost is going down because they are beginning to use more lignite. Mr. Page stated the main gas suppliers are Lone Star Gas, Tufco, and approximately sixty (60) inde- pendent suppliers. Mr. Wright inquired if the fuel adjust- ment is the same in all cities that Texas Power and Light services. Mr. Page answered affirmatively. Mr. Bill Toppe, inquired i f Texas Power and Light has any interest in any of the companies that they buy fuel from. Mr. Page stated that they have no in- terest in Lone Star Gas and Tufco is operated at no profit. Mr. Page stated that Mr. Gregory was using the Federal Power Commission Booklet for reference and that this does not pertain to Texas Power and Light because they are not interstate. Mayor Samuels declared the Public Hearing closed. Mr. Hunt stated that after the initial Public Hearing, the Council approved a motion that Texas Power and Light take a belt tightening approach; that they were ask to come back with figures less than they were asking for. Mr. Hunt stated that they had a work session and Texas Power and Light was ask what would happen if they were offered a rate increase of 7 %, and he does not believe this was answered. Mr. Page stated the Treasurer for Texas Power and Light stated at the work session, that the net received from a 7% increase would not work. Mr. Page stated they are asking for the bare minimum. Mr. Hunt inquired that if Texas Power and Light does not receive an 11 %rat+e increase from the City, then they don't want any rate increase? Mr. Page stated that Texas Power and Light would not accept less than an 11 %rate increase. Mr. Hunt inquired if the Council could varify the fuel cost paid by Texas Power and Light. Mr. Page stated they could go to Dallas and have a meeting with the Treasurer and look at the records. Mr. Hunt inquired i f the records would be available to the Utility Commission and to Touche -Ross for the report from Waco. Mr. Page answered affirmatively. (Page Five, Regular Meeting, Euless City Council, August 26, 1975) Mr. Hunt stated, as I see it, we have one (1) of two (2) choices; we can undertake our own rate increase investi- gation or we can rely on other entities to do it for us, such as the City of Waco. Mr. Hunt moved that the Council defer final approval on the Texas Power and Light rate increase until the Waco study has been completed and acted upon by that City and at such time take final action whether to pass or deny the rate increase. Mr. Walker seconded the motion. Mayor Samuels stated that at the session the City Manager and he attended, a gentlemen not with Texas Power and Light Company, made a rate percentage on 60 -40 instead of 40 -60 as requested, and he was wondering the cost difference. Mr. Page stated the return on a 60 -40 increase would be $7.15 to $7.97. The vote on Mr. Hunt's motion is as follows: Ayes: Messrs. Hunt, Walker, Wright, Ozebek, and Mrs. McCormick Nays: None Mayor Samuels declared the motion carried. II RESOLUTION NO. 367 CALLING PUBLI HEARING ZONING CASE NO. 247 REQUEST OF MR. DON WOOLDRIDGE AND ASSOCIATES FOR CHANGE OF ZONING FROM "R -1" SINGLE FAMILY DWELLING DISTRICT TO "C -1" NEIGHBORHOOD BUSINESS DISTRICT AND "R -2" TWO FAMILY DWELLING DISTRICT ON A PORTION OF LOTS 9, 10, 11, 22, 23, & 24, BLOCK 2, J. E. WHITENER . ., ..,, m[, T no Amt'T\ nrT SOUTH PIPELINE ROAD,) Mr. Wright moved to set the Public Hearing date on Zoning Case No. 247, request of Mr. Don Wooldridge and Associates, for September 9, 1975. Mr. Ozebek seconded the motion and the vote is as follows: Ayes: Messrs. Wright, Ozebek, Walker, Hunt and Mrs. McCormick Nays: None Mayor Samuels declared the motion carried. 94 (Page Six, Regular Meeting, Euless City Council, August 26, 1975) III SALARY SCHEDULE Mr. Hunt moved to approve the recom- mendation made by the City Manager at the executive session prior to the public meeting on the increased salary schedule for employees. Mr. Ozebek seconded the motion and the vote is as follows: Ayes: Messrs. Hunt, Ozebek, Wright, Walker and Mrs. McCormick Nays: None Mayor Samuels declared the motion carried. IV ADJOURNMENT The meeting adjourned at 9 :25 P,M, APPROVED: 2hdidoiwp—.4) Mayor ATTEST: City Secretary