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1978-02-20 CC MinutesCITY OF FARMERS BRANCH CITY COUNCIL MINUTES OF A REGULAR MEETING February 20, 1978 COUNCIL CHAMBER POLICE BUILDING The members of the City Council were present: Mayor George G. Grimmer Mayor Pro Tem Bill Binford Councilmen: John Dodd Fred Johnson Ken Quevreaux The following member of the City Council was absent: Councilman Gene Matthews The absence of Councilman Matthews was recognized and excused because he was out of the city on business. The following members of City Manager City Attorney City Secretary' Director of Staff Secretary the City Administration Paul M. West John Boyle J. W. Wade Services Glenn Moore Ruth Ann Parish were present: Mayor Grimmer called the City Council meeting of February 6, 1978 to order at 7:30 P.M.. AGENDA ITEM NO. A.1 -INVOCATION J. W. Wade gave the invocation. DECLARING AN E14ERGENCY: After due consideration, a motion by Councilman Dodd, a second by Councilman Quevreaux, all voting "aye", declared an emergency and placed on the agenda as Item No. E.2.-Consider Authorizing the Advertisement for Bids for Commercial Containers for the Sanitation Division. AGENDA ITEM NO. A.2 -APPROVAL OF MINUTES - February 6, 1978 After some discussion, Councilman Johnson made a motion to amend the minutes to reflect the opinion of the legal counsel of a Councilman disqualifying himself from voting. Councilman Dodd seconded the motion. There was discussion among the members of the Council that the legal opinion was given in the Executive Session and not brought out in the open session; and, that in order to be made -a matter of record the item should be placed on the agenda for the next Council meeting. Councilman Johnson made a motion to amend his motion to approve the minutes of the City Council meeting of February 6, 1978 as submitted. Councilman Dodd seconded and asked to have the name of Benny Brigg changed to Benny Brigham on Page 119, Vol. 28. Councilman Johnson accepted the name change correction. And all voted "aye". Vol. 20, Pa-re--l, The Council requested that an item be placed on the agenda for the next Council meeting to record the opinion of the legal-coutsel of the disqualifications of a Councilman in voting on items. AGENDA ITEM NO. C.1 -PUBLIC HEARING: CONSIDER REOUEST FOR RATE INCREASE BY TEXAS P014ER AND LIGHT COMPANY. Mayor Grimmer opened the public hearing to consider the request for a rate increase by Texas Power and Light Company. Mr. Mike Arrington, Manager of Texas Power and Light and Gary Price, Assistant Treasurer of Texas Power and Light appeared before the Council requesting the approval of a rate increase for electrical service in the City of Farmers Branch. Mr. Arrington outlined Texas Power and Light Company's needs for a continued level of adequate and reliable service by showing and discussing comparison slides concerning the following topics: 1. Percent of Total Energy from Lignite 2. Total Energy Projection 3. Fuel Costs (average) -Estimated Cost Savings to TP&L Customers from use of Lignite (12 Month ended September 30, 1977) 4. Annual Construction Expenditures 5. Cost of New Generation Plant Facilities. 6. Air Pollution Control Costs 7. Customers Servied 8. K.W.H Use Per Residential Customer 9. Annual Construction Expenditures Internal Funds 10. Embedded Interest Cost 11. Times Earned Fixed Charges (Interest Coverage) 12. Investment Per Customer 13. Cost of 1000 KWH of Electriction for Residential Use in Major Cities Compared to TP&L. 14. Price per Average K.W.H. -Residential 15. Cost Comparisons Mr. Arrington stated because of inflation in the cost of fuel, money and everything necessary to generate and distribute electricity; are the critical factors for requesting the rate increase. He said the TP&L must build the lignite plants and that TP&L must ask for an increase in the rates. Texas Power & Light Company requests rates to produce $118 Million in General Revenues based on the test year. This amounts to an 18.4% in General Revenues based on the same test year. Mr. Arrington stated that with increasing capacity from lignite fuel plants , TP&L expects to reduce fuel costs which will lessen the net effects of the rate to customers in 1978. Discussion on information distributed to each Council Member concerning the net effect that the increase will have on the TP&L bills of each Councilman was held at this point in the meeting. Vol. 29, Page 2. Mayor Grimmer asked if there was anyone in the audience wishing to speak in favor of the request. No one spoke. Mayor Grimmer asked if there was anyone in the audience wishing to speak in opposition to the request. No one spoke. A motion by Councilman Quevreaux, a second by Councilman Dodd, all voting "aye", closed the public hearing. A lengthy discussion was held between the members of the Council, Mr. Arrington and Mr. Price concerning: the names of the companies involve,i in the TP&L structure and their functions; stocks and dividends of TP&L; the rate structure; the fuel adjustment clause charge; and, the cost of the construction of the lignite plants. Councilman Quevreaux requested information be furnished on what components are included in the fuel adjustment charge on his bills for the past 12 months of 1977, and for the other Council members too. Requested also was information on cost per 1000 K.W.H. for month of July, 1977 by Southwestern Public Service Company, by West Texas Utilities, and by Southwest Electric Company; which TP&L's cost was $41.68 per 1000 K.W.H. Councilman Quevreaux also request that information be furnished giving the gross revenues of 1976 and 1977 on which TP&L paid their franchise tax. The information should be broken down as to the total for the fuel adjustment charge revenues, and the basic charge revenues. Councilman Johnson stated that there had not been any evidence presented by TP&L as to what their earnings have been in Farmers Branch, nor information given relating to the cost of providing such service to the City of Farmers Branch. He requested that this information be furnished to the City. Mr. Arrington stated that the information requested by Councilman Johnson has always been provided on the svstem wide basis. He stated TP&L has never allocated the cost of a generating plant to a city and the methods for doing so are not clear and would be expensive and time consuming. Councilman Dodd stated that the Public Utilities Commission will begin its hearings on the request March 6, 1978 and Farmers Branch is part of the Texas Municipal League group of cities that will be heard at the hearing of the Commission. Councilman Dodd made a motion that enactment of the proposed rates be held in abeyance in order that the city can study further the date and request to Texas Power & Light Company for additional data requested by Councilman Quevreaux and any other information the City staff wishes to acquire, for a period not to exceed 120 days from the date the rates were proposed to go into effect. Councilman Binford seconded the motion. The motion carried 3 to 1 with Councilmen Dodd, Binford and Quevreaux voting "aye", and Councilman Johnson voting "nay". Vol. 29, Page 3. AGENDA ITEM NO. C.2 -PUBLIC HEARING: CONSIDER REQUEST FOR RATE INCREASE BY LONE STAR GAS COMPANY. Mayor Grimmer opened the public hearing to consider the request for a rate increase by Lone Star Gas Company. Mr. Bill Thogmartin, General Manager of the Lone Star Gas Company, presented a request for a rate increase. A chart was displayed show- ing the effi?ctthe increase will have on the average user annually. Charts were displayed on the bill analysis on quantity used by commercial and residential customers and discussed. The increase will be an increase of 15.46% in Farmers Branch in the gross earnings of the Lone Star Gas Company. Mr. Thogmartin stated that inflation in°the cost of service to the customer is the reason for the increase request. Mr. Thogmartin stated that there are 4 major changes in the rate request filed with the city. They are: (1) Minimum bill of first 1000 cubic feet usage is $4.00. All customers will have the same rate; (2) Eliminate the prompt payment discount; (3) Increase connect charges from $7.50 to $20.00; and (4) Eliminate the pro- vision of no minimum bill if no gas is used -(All will receive the $4.00 minimum bill whether gas is used or not.) After some discussion of money being provided for consulting fee, Mr. Thogmartin explained that $11,000.00 had been included in the rate package to be used over a three year period for the three cities, Farmers Branch, Carrollton and Addison, for consulting fees for studying the rate increase. Mayor Grimmer asked if there was anyone in the audience wishing to speak in favor of the request. No one spoke. Mayor Grimmer asked if there was anyone in the audience wishing to speak in opposition to the request. The following spoke: 1. Mr. Alvin Thomas, 2668 Leta Mae, asked what the deposit would be for gas service in the proposal? He asked what the reconnect fee will be if a bill is not paid and the gas is disconnected? Mr. Thogmartin replied that the deposit for gas service is $20.00 unless good credit rating is proven; and, the charge for a reconnect fee will be $20.00. 2. Mr. Ray Flaherty, 13220 Challaburton, asked what is the percentage of increase-to the average consumer? Mr. Thogmartin replied that it was 14.54%. 3. Mrs. Carol Dingman, 3605 Tanglewood Circle, asked the Council to look into the request of the 10.29% rate of return on the adjusted value which is the same as the replacement cost. Mrs. Dingman asked the Council to look into request for the elimination of the 10% discount provision. She also stated that she would like the Council to investigate the hiring of an outside consultant to study the request for the rate increase. Vol. 29, Page 4. There being no one else wishing to sneak, a motion by Councilman Binford, a second by Councilman Dodd, all voting "aye", closed the public hearing. A discussion was held between the members of the Council and Mr. Thogmartin. Mr. Thogmartin stated that the City of Carrollton is hiring Touche, Ross and Company as consultants to do a study on the rate increase request. There was discussion of the allocation of cost provision for the hiring of consultants that is included in the rate increase package. Carrollton Mayor Steenson and Carrollton Councilman Walker were present. Mayor Steenson stated that he was unaware of the cost allocation provision for the hiring of consultants. He stated that Carrollton's City Manager was to contact Touche, Ross and Company about the study but did not know any of the arrangements. After more discussion, a motion by Councilman Dodd, a second by Councilman Binford, all voting "aye", tabled the decision on the rate increase request until May 15, 1978, and instructed the City Manager to investigate the feasibility of hiring a rate consultant with the cities of Carrollton and Addison. Mayor Grimmer gave the following information from a memo to the Council from the City Administration: Lone Star Gas Company pays a 2% franchise tax on gross receipts from the sale of gas to residential and commercial customers. The City's franchise will not allow the Council to increase the 2% without agreement from Lone Star Gas Company. Lone Star Gas Company is agreeable to increase the 2% to 4% and include industrial sales under the franchise tax should it be the desire of the Council. Lone Star Gas Company will require the increase to be included in the pending rate request. The increase will be passed on to the customers. There was discussion of the Council desiring to extend the 2% fran- chise tax on gross receipts from the sale of gas to residential and commercial users and to include the industrial customers. Mr. Thogmartin stated that Lone Star Gas Company could prepare an amendment to the franchise ordinance and present it to the city. After more discussion, a motion by Councilman Johnson, a second by Councilman Binford, all voting "aye", authorized the City Manager to work with the Lone Star Gas Company for the amendment to the franchise contract with Lone Star Gas Company cnll;.rtg for an extension of the 2% franchise to:: including the Industrial customers. Vol. 29, Page 5. AGENDA ITEM NO. C.3 -DISCUSS PLANS FOR A PERMANENT STRUCTURE TO BE PLACED IN JAYCEE PARK. Mr. Mike Hill, 2826 Esca a in Farmers Branch, President of the Farmers Branch Jaycees presented a request for permission to place a permanent structure in Jaycee Park. Mr. Hill explained that the proposed structure will be constructed by volunteer help of the Jaycees and the Associated Sports organization. Mr. Don Harvey of the Associated Sports, displaying the plan, explained that they propose the 20' x 18' building to be used for storage and concession stand facilities and do not include plans for restroom facilities. The only plumbing work that will be needed is water and drainage facilities. He stated that Associated Sports is not requesting the city to furnish any of the plumbing work. City Manager Paul West stated that the proposed plan for the structure had been presented to his staff on Friday, February 17, 1978 by Mr. Harvey. Mr. West stated that his Inspection Divi- sion and Park Department had not had the opportunity to have time to study the plan to be sure it is in compliance with all the codes and ordinances and with the park system plans. Councilman Dodd made a motion to a-prove the structure to be placed in Jaycee Park subject to compliance with the city staff's recom- mendations and all city ordinances. The motion died for lack of a second. Mr. Hill explained that the Jaycees had donated the land to Farmers Branch for the park and the Jaycees wished to improve the park with a permanent structure for storage and concession stand facilities. The facility is to be donated free of cost to the city when it is completed. Mrs. Dianne Harvey of Associated Sports Auxiliary expressed the desire and need for the building in order to have storage area where their equipment and concession supplies would be safe from vandalism. Mr. West stated that the city staff was investigating the possibilities of furnishing portable steel containers that can be used for storage. The containers would be similar to a roll on -roll off steel garbage container except having lids these would have doors that can be locked. The containers can be picked up will the equipment inside, transported and stored during off-season. Mr. West stated that the containers could be designed to provide the storage and security that the leagues need. Mr. West stated that a slab with water and electricity could be provided by the city for a portable concession stand at Jaycee Park. There was discussion between the members of the Council and the City Manager concerning the procedure that the Jaycees should follow to make proper application in securing the building permit. Vol. 29, Page 6. After more discussion that the consideration should be presented to the Inspection Department rather than the City Council, A motion by Councilman Johnson, a second by Councilman Binford, all voting "aye", removed this item from the agenda as it is not g a proper matter for the Council to consider. Mr. West stated that the Park Department would investigate the portable containers further and discuss the ideas with the Sports Council. Mr. West stated that there was an item further on the agenda asking permission to advertise for bids for containers and these storage containers could be added. AGENDA ITEM NO. D.1 -CONSIDER AUTHORIZING CITY MANAGER TO ENTER INTO BEAUTIFICATION EASEMENT AGREEMENT BETWEEN CITY AND VALLEY VIEW CENTRAL. A motion by Councilman Dodd, a second by Councilman Quevreaux, all voting "aye", tabled this consideration until the next Council meeting in order for changes to be made in the agreement which is requested by the property owner. AGENDA ITEM NO. E.1 - CONSIDER REQUEST TO ADVERTISE FOR BIDS TO REPAIR THE WALLS AND OVERHEAD DOORS OF THE SHOP AREA OF THE CITY SERVICE CENTER LOCATED T 13333 SENLAC DRIVE. A motion by Councilman Ouevreaux, a second by Councilman Dodd, all voting "aye", authorized the advertisement for bids for repairs to the walls and overhead doors in the city shop at the Service Center on 13333 Senlac Drive. AGENDA ITEM NO. E.2 - CONSIDER AUTHORIZING THE ADVERTISEMENT FOR BIDS FOR COMMERCIAL CONTAINERS FOR SANITATION DIVISION. After some discussion o including containers that could be used for storage in the bids, a motion by Councilman Johnson, a second by Councilman Quevreaux, all voting "aye", authorized the advertise- ment for bids for commercial containers with the number of the containers specified in the advertisement to be left at the discretion of the City Manager. MAYOR GRIMMER ANNOUNCED THAT THE ITEMS ON THE AGENDA FOR THE GENERAL SESSION HAD BEEN CONCLUDED. AFTER A SHORT RECESS THE COUNCIL WILL RECONVENE FOR ITEMS IN THE EXECUTIVE SESSION. THE MEETING WILL RECONVENE INTO GENERAL SESSION AFTER THE ITEMS HAVE BEEN DISCUSSED IN THE EXECUTIVE SESSION. ARTICLE 6252-17, SECTION 2 OF THE OPEN MEETING LAW PROVIDED THAT SUCH ITEMS AS PERSONNEL MATTERS, LAND ACQUISITION, AND PENDING AND CONTEMPLATED LITIGA- TION MAY BE DISCUSSED IN CLOSED SESSION. AGENDA ITEM NO. F.1 -EXECUTIVE SESSION a. Discuss Personnel Matters No discussions were held on personnel matters. Vol. 29, Page 7. b. Pending and Contemplated Litigation Attorney John Boyle gave a status report on the litigation with T's and Things. C. Discuss Land Acquisition. City Manager Paul West stated that his staff is still investigating possible future landfill sites. City Manager Paul West gave an up-to-date status report on the Flood Control District. THE MEETING WAS RECONVENED INTO GENERAL SESSION. AGENDA ITEMS NO. F.2, F.3 and F.4. There was no action needed by the Council on items discussed in the Executive Session on Personnel Matters, Pending and Contemplated Litigation, and, Land Acquisition. AGENDA ITEM NO. G.1 -ADJOURNMENT. A motion by Councilman Dodd, a second by Councilman Quevreaux, all voting "aye", adjourned the City Council meeting of February 20, 1978 at 11:05 P.M.. Mayor G org G. rii,mer Z. - ''j,_ ,q City ecretary Vol. 29, Page 8.