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HomeMy WebLinkAbout1977-04-26Regular Meeting Euless City Council April 26, 1977 CALL TO ORDER N° 161 The regular meeting of the Euless City Council was called to order at 8:00 p,m, in the Council Chambers of Euless City Hall by Mayor Harold Samuels. Other members present were Mrs. Willie Mae McCormick, Messrs. Raymond Ozebek, Glenn Walker and Robert Pippin. (Absent: Mr, Charles Hunt.) Also present were City Manager W. M. Sustaire, City Secretary Della Houy, City Attorney James Cribbs, City Engineer Greg Dickens, and Assistant City Manager John Lynch, IV. V ISITORS Visitors in attendance are as follows: Messrs. Ed Robison, Ricky Black, David Katz, Ray Wells, Bob Daniel, David Bayless, and Don Calhoun; Mesdms. Jerri Walker, Terry Katz, and Myrtle Hall. I NVOCAT ION The invocation was given by Mayor Harold Samuels. APPROVAL OF MINUTES The minutes of the regular meeting dated April 12, 1977, were approved as written. ORDINANCE NO. 418, REZONING TRACT 1E, JOHN N HALEIS SURVEY, ABSTRACT 685, FROM "C -2" COMMUNITY BUSINESS DISTRICT TO "1 -1" LIGHT INDUSTRIAL DISTRICT WITH A SPECIFIC USE PERMIT Mrs. McCormick moved to approve second and final reading of Ordinance No. 518, rezoning Tract 1E, John H. Havens Survey, Abstract 685, from "C -2" Community Business District to "1 -1" Light Industrial District with a Specific Use Permit for sale of water and sewer supplies. Mr. Pippin seconded the motion and the vote is as follows: Ayes: Mrs. McCormick, Messrs. Pippin, Ozebek, and Walker Nays: None Mayor Samuels declared the motion carried. N° 162 (Page Two, Regular Meeting, Euless City Council, April 26, 1977) II .PUBLIC HEARING - RATE REQUEST OF TEXAS POWER AND LIGHT COMPANY Mayor Samuels opened the public hearing on the rate increase request of Texas Power and Light Company and recognized Mr. Bob Daniel, Manager of Texas Power and Light Company. Mr. Daniel stated that on December 22, 1976, Texas Porver and Light Company filed a rate increase request with the City of Euless and also filed the same request with each of the 260 cities they also serve and with the Public Utility Commission, which has jurisdiction over the rural rates, as well as appellate jurisdiction over all the rates. Mr. Daniel stated that the rate request was for 135 million dollars in additional revenue, this amount was sufficient to restore the company's financial health and allow them to keep their construction program for badly needed lignite and nuclear fuel generating plants on schedule until late 1979. He further stated that they were disappointed in the $52,242,508 increase finally granted by the Public Utility Commission. He stated the staff and general office of Texas Power and Light is studying the release from the Commission and hopefully w i l l have an answer in a few days on that request. He stated this is a question of whether the company can continue to provide their customers with sufficient electricity when they want it and at a price they can afford. Mr. Daniel stated that Texas Power and Light is making the necessary transition from generating with natural gas and fuel oil to generating by lignite coal, as more than 40 %of the electricity generated now is being done by lignite coal and by 1978 that will be more than 60%, and by 1983 will be 59% lignite coal, more than 13% nuclear fuel, and less than 28 %from natural gas and fuel oil, if they are able to continue their construction program. He stated that the use of lignite coal will enable the customer to have more electricity at a lower cost than with gas and fuel oil. He stated they should have a decision on the Public Utility Commission's decision in the next few days and it is their goal to place the rate increase in effect in the June revenue. Mayor Samuels inquired if they do take the rates that the Public Utility Commission has recommended, will they scale down the increase in each catagory. Mr. Daniel stated that at the present time the staff is in the process of analyzing the report and they really don't know, that the total amount that was granted must be adjusted to reach that revenue. Mrs. McCormick inquired if the nuclear plant in Glen Rose is on schedule. Mr. Daniel stated that they expect the first unit to be on line in 1981 and the second unit in 1983. 163 (Page Three, Regular Meeting, Euless City Council April 26, 1977) Mrs. McCormick inquired if they are involved in the fusion research in Austin. Mr. Daniel replied yes. Mrs. McCormick stated that at one time there were some people from Russia over here on liquefaction of coal in the ground and inquired if Texas Power and Light was involved in this. Mr. Daniel stated they were involved, that they were trying to learn from the Russians, a way of burning lignite coal in the ground to produce gas and they are participating in various other research projects. Mrs. McCormick inquired if they were considering the idea of financing on insulation of homes. Mr. Daniels stated yes, that they are beginning to work along that line, that there has not been a final plan establ i shed. Mrs. McCormick inquired how much of the fuel used in generating electricity today is natural gas and fuel oil. Mr. Daniel stated that 40% is lignite coal and 60% is natural gas and fuel oil and by 1978 they expect 60% lignite coal to be used. Mr. Cribbs stated that the original request was for 135 million dollars, and inquired what period of time that rate would have stood in good stand, had PUC granted it. Mr. Daniel stated that rate would have carried to mid 1979. Mr. Ozebek inquired if there was some simple way to explain the rate of a home owner vs a large business user, does TP &L set these rates or are they set by the PUC. Mr. Daniel stated that as the act now specifies, it w i l l closely resemble the act of cost of service for that particular class of customer, so that does involve extensive studies in rates, as far as commercial, industrial, residential, schools and municipals, and the rate must be based, as close as possible, as to cost, to serve that p a r t i c u l a r class of customer, but they d o n ' t know a t t h i s time how t h i s w i l l be divided. Mr. Cribbs asked Mr. Daniel to advise the Council when Texas Power and Light makes a decision to accept the rate set by the Public Utility Commission. N° 164 (Page Four, Regular Meeting,. Euless City Council. April 26. 1977) Mr. Daniel stated that he would keep the Council advised. Mayor Samuels inquired if there were any other proponents; there being none, he inquired if there were any opponents. Mr. Ed Robison inquired if the hearing in Austin was only for unincorporated areas and is the City's rates based on a different request and is TP &L still asking for 314%. Mr. Daniel stated that the Public Utility Commission has jurisdiction over unincorporated areas and the cities maintain provisional jurisdiction and their request was filed with the Public Utility Commission at the time the request was filed with the City and their rate i s based on a total system ,side rate, rural and cities, so the rate set by PUC will be for the entire system. Mr. Robison inquired if the government i s going to give TPGL any tax relief for going to lignite coal. Mr. Daniel stated that the Commission has asked them to come back within six (6) months and give them a projection of their future generating equipment. Mr. Ray Wells inquired if the City is bound by the rate set by PUC, or can the City negotiate for a lower rate with TP &L. Mayor Samuels stated that the City can pass any rate they want and TP &L can appeal to PUC and this is one of the reasons the Council waited this long for the public hearing, so they could have some input from the PUC hearing. Mr. Cribbs stated that the City of Euless has until September of this year to make the decision to come under the Public Utility Commission rate making authority. Mr. Wells inquired what regulates the f u e l cost added t o the e l e c t r i c b i l l , doesn't Texas Power and Light obtain their gas and fuel oil by contract. Mr. Daniel stated that as these contracts expire, they renegotiate and the cost of gas and oil will be higher. He stated that as lignite coal plants are added, the fuel cost will go down. Mr. Wells stated that he would I i ke to see a rate increase approved with the fuel charge omitted and in six (6) months have another study to see if this plan works. Mayor Samuels stated that in the last rate increase request, TP &L dia change the fuel adjustment clause. N° 165 (Page Five, Regular Meeting, Euless City Council, April 26, 1977) Mr. Daniel stated that at the time of the last rate increase request, the fuel cost was $.70 million BTU and now it is $.91 per million BTU and it is specified in the act that total fuel w i l l be an item separate on the b i l l ; that total fuel cost will be figured on the total kilowatt hours. Mayor Samuels if there were other opponents; there being none, he declared the public hearing closed. Mayor Samuels stated that it is the policy of the Council not to take action on a rate increase request at the public hearing, to allow the Council additional time for study and this w i l l give the Council time to get the written ruling from the Public Utility Commission, and will give Texas Power and Light an opportunity to report back t o the Council. He stated t h e Council w i l l take some type of action on May 10th. Mr. Pippin inquired what date TP &L project to have 0% petroleum product firing the boiler. Mr. Daniel stated that at this point they will never reach 0% petroleum, t h a t they w i l l have to depend on some natural gas and some fuel oil for peaking purposes, but they anticipate by 1986 to be using only 10% natural gas and fuel oil. Mr. Ozebek inquired if there has been an estimate made on lignite reserves in Texas. Mr. Daniel stated that on the plants they now have, they a n t i c i p a t e forty (40) p l u s years, and they w i l l begin to mine in New Mexico in the early 1980's. Mr. Pippin moved to table action on the rate increase request until the May 10th meeting. Mr. Walker seconded the motion and the vote is as follows: Ayes: Messrs. Pippin, Walker, Ozebek, and Mrs. McCormick Nays: None Mayor Samuels declared the motion carried. IV AWARD CITY'S INSURANCE CONTRACT Mr. Sustaire stated that he recommends the City continue the contract as presented by Connecticut General Insurance Company. N° 166 (Page Six, Regular Meeting, Euless City Council, April 26, 1977) Mr. Ozebek moved to concur with the recommendation of the City Manager and continue the contract with Connecticut General Insurance Company for another year. Mrs. McCormick seconded the motion and the vote is as follows: Ayes: Mr, Ozebek, Mrs. McCormick, Messrs. Walker and Pippin Nays: Nine Mayor Samuels declared the motion carried. V RESOLUTION NO. 402 TO TEXAS WATER QUALITY BOARD City Attorney Cribbs read Resolution No. 402, from the Euless City Council to Texas Water Quality Board, reference Permit No. 10221 -1, City of Mesquite. Mrs. McCormick moved to approve Resolution No. 402, on proposed amendment to Permit No. 10221 -1, City of Mesquite. Mr. Pippin seconded the motion and the vote is as follows: Ayes: Mrs. McCormick, Messrs. Pippin, Walker, and Ozebek Nays: None Mayor Samuels declared the motion carried. (Copy of Resolution No. 402 on file in Office of City Secretary.) VI CITY ATTORNEY'S REPORT Mr. Cribbs stated that the final contested hearing for right -of -way on the east side of North Main Street is set for May 5th. VII COMMENTS Mrs. McCormick stated that the County has completed the topping of North Main Street from Little Bear Creek Bridge to Glade Road. N° 167 (Pape Seven, Regular Meeting, Euless City Council, April 26, 1977) Mrs. McCormick stated she wants to thank Mr. and Mrs. Neal for commending the Police Department, namely three (3) officers, Michael Harris, Philip Kight, and Larry Ingram, for the fine work they have done. Mr. Sustaire stated that the City has received n o t i f i c a t i o n from Congressman Dale M i l ord's office that the park grant, in the amount of $285,300, for the park n North Euless has been approved. Mayor Samue s thanked Mrs. Myrtle Hall for the article in the Mid - Cities Daily News on Mr. Parks, who bought the Western H i l l s I n n , and stated he feels t h i s bus ness w i l l help the community. ATTEST: /s/ Della Houy City Secretary VIII The meeting adjourned at 9:00 p.m. APPROVED: /s/ Harold D. Samuels Mayor N° 168