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1949 02 24 CC Minutes, Special134 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS February 24, 1949 The city council of the city of 3aytown, Texas met in special session at 6t15 p.m. in the council room of the Baytown city hall with the following members in attendances E. D. Cleveland Mayor H. I. Davis Councilman 0. 0. Dorris Councilman Fshy Godfrey _ Councilman Robert Strickland Councilman J. A. Stroud Councilman Weldon H. Williams Councilman Present: C. Darwin Middleton City Manager David Donoghue City Attorney Edna Oliver City Clerk The mayor called the meeting to order. He stated the purpose of the special meeting and asked the council if it was ready to act on the telephone rate request. Councilman Godfrey said he felt that the telephone company should withdraw its request for six (6) months because of public sentiment. "If the service has improved by then, I think the people will be glad to give the increase." Councilman Williams stated he felt that before he could recommend an increase the company should present a certified audit of the Baytown exchange properties, pro- perly broken down. "I Gantt make up my mind what is the proper rate of return so far as the investment is concerned." Councilman Davis said he had checked with several people concerning all utilities and he found that few complaints were registered against the gas and light companies, however, the telephone company had many justifiable complaints. He acknowledged that the service had improved lately, however, he did not know if this aculd be permanent. Councilman Dorris expressed his sentiment as "According to Red, its up to the telephone company to sell the public on the idea of a rate increase; I don't think it has." .Councilman Davis did not think the company could hope to gain anything by pre- senting a false statement. Councilman Williams contended that the company could not take observable depreciation. Councilman Strickland's attitude was that the council should consider "The best interests of the people, not wants." He felt that an increase should be given since by law public utilities are granted the right to make a fair return on their investments. If the increase should be denied and the company took the case to court the city would be in the position of having to defend itself. This would require rate experts, audi- tors and defense experts which would incur considerable expense. Councilman Davis contended that he would not hesitate to grant an increase, if the rate was on par with the towns of comparable size; that the present rate in Baytown, without an increase, was the same as other towns with an increase. Councilman Strickland recommended that an increase be granted for the period of one year, contingent on improved service and dial phones. "This will put the burden on the telephone company and not on us," he said. Councilman Davis made the motion to inform the telephone company that the council would grant a raise the day the dial system was installed. Councilman Williams recom- mended that Councilman Davis amend his motion and inform the telephone company that the rate increase had been rejected, however, the council would consider granting an in- crease when the dial system is installed. No action taken. After a lengthy discussion, Councilman Strickland moved to grant fifty (50 %) per cent of the requested increase rates; service charges to remain the same as now and the city attorney to be instructed to prepare an ordinance accordingly. Councilman Davis seconded the motion. The roll call vote was as follows: Roll Call: Ayes: Mayor Cleveland Nayss Councilman Dorris Councilman Davis " Godfrey " Strickland " Stroud " Williams Councilman Strickland moved that the meeting adjourn. Councilman DayA_-V seconded the motion. The ayes were unanimous,and the mayor deelar d the meet' g a j urned. ATTF,STTt / . D. Cleveland, Mayo Mrs, Edna Oliver, it� 9 Clark I 11 I