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1949 02 18 CC Minutes, Special132 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS February 18, 1949 The city council of the city of Baytown, Texas, met in special session at 7:30 p.m. in the council room of the Baytown city hall with the following members in attendance: 0. 0. Dorris Mayor pro tem H. I. Davis Councilman Fahy Godfrey Councilman Robert Strickland Councilman J. A. Stroud Councilman Weldon H. Williams Councilman Absent: E. D. Cleveland Mayor. Present: C. Darwin Middleton City Manager David Donoghue City Attorney Edna Oliver City Clerk Mayor pro tem Dorris called the meeting to order. He stated the reason for the special meeting - a public hearing on telephone rates, and asked that the representa- tive of the Telephone Company step forward and be properly introduced and sworn in before being heard. The City Attorney swore in this witness and other witnesses at the hearing. Ray F. Red for Telephone Companv� Ray F. Red, General Commercial Manager of the Southwestern Associated Telephone Company, based his opening remarks -on the rate folder that had been presented to the council recently. He stated that an increase in rates had not been made by his com- pany in sixteen (16) years, even though the cost of labor, material and equipment had advanced rapidly in the past several years. He explained that for the investment made, the company should derive a reasonable rate of income. The company had increased from a $328,000 investment to a present $840,000. When the building, now under con- struction, is completed and the dial system installed the investment will be $1,600,000 and all of this should be completed by January 1, 1950, Recently the telephone company had received many complaints because of inefficient switch board service. These were caused by the installation of more telephones, than positions on the svitch board to accommodate the calls. The office was flooded with applications and the company was faced with one of two things; do not install new tele- phones and give adequate service or share the lines with others and give less efficient service. The second choice was the one taken by the company. He told the council that he considered the rate request to be reasonable and fair, showing only a reasonable re- turn for the investment of the company. Council Repiy Councilman Williams referred to page one "Sale of Securities" and questioned Mr. Red on the sale of bonds to insurance companies without a certified public accountant's audit. Mr. Edward C. Brink, Auditor of the company, informed Councilman 'Jilliaims that to his knowledge the insurance companies did not require that type of an audit. Councilman Strickland asked if the report that had been submitted included in Its scope the outlying sections that were serviced from the Baytown office such as Wooster, Cedar Bayou, Brownwood and Crystal Bay or instead the corporate limits of the city only. When informed that it included the complete Baytown area he replied, "You haven't given us anything to work on" as the council was not interested in any- thing except the corporate limits of Baytown. W. N. Hunt Mr. Hunt informed the council that a mileage charge had been made on some re- sidents in Danubina Acres, Busch Terrace and Gulf Hill, but since January 1, 1949 the company was eliminating th-- cileage rates from within the city limits. A mile- age rate was charged to residents of Wooster, Crystal Bay and Browmrood areas and this would be eliminated if the rate increase was granted, however, it would be retained if the increase was denied. Miscellaneous Councilman Strickland compared the nctari_ _ -. - -tion rendition of January 1, 1948 with the statement of valuation presented for the hearing and he assured the telephone representatives that its ad valorem tax for 1949 would be much higher than 1948. I I r r r February 18, 1989 IN Complaints were registered by various residents within the city limits and many living outside the city limits. The most prevalent complaint seemed to be the uneven rate charge levied against persons living within the same block. These were assured of an inv_stijation and corrections if errors were found. Several objected tc changing the two -party lines to four -party lines without contacting the customers. Some felt that the report which was presented did not give the correct financial statement of the company insofar as the corporate city was concerned. It was suggested by Councilman Williams that a rate increase would be granted on a contingent clause basis; if the service did not improve after a certain given period the rates would revert to the former charge. The telephone company's repre- sentative objected to this suggestion. It was decided to have a special meeting of the council-during the next week, to decide on the rate increase request. Councilman Strickland moved that the meeting adjourn. Councilman Davis seconded the motion. The ayes were unanimous and the mayor pro tem declared the meeting adjourned. ATTESTt Mrs, Edna Oliver, City Clerk