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1955 07 06 CC Minutes, Special811 MINUTES OF THL SPECIAL MEETING OF THH CITY COUNCIL CF THE CMCF BAYTOWN, TEM July 62 1955 The City Council of the Cityof_Bayto n.. Texas met in special session on Wednesdsys July 6, 1955 at 1Os00 o'clock a. m. in the Council Boom of the Baytown City Hall with the following members in attendances P. H. Mears R. B. Bergeron H. M. Campbell M. L. Campbell - Al Clayton lacy tusk R. H. Pruett A. V. Barber George Chandler Edna Oliver Councilman Councilman Councilman C cuncilman Councilman Couniolman Mayor Acting City. Manager City Attorney City Clerk The Mayor called the meeting to order and opened the public hearing on the recent request of the Houston Natural Gaa Corporation for a gas rate increase. H. Fe Massey, district Imager of the Houston Natural Gas Corporation, reviewed the filing of the ap+11cation for authority to increase the rates charged for natural gas service in Baytown. He pointed out that the Company had provided sage and dependable natural gas service at rates inadequate to provide it with any- thing like a Bair and reasonable return on the value of its property used in furnishing natural gas service. The present rate structure provided the Company with a return of only 2.95% on a, conservative satimte for the year 1954 and, in order topprovide -the Company with a fair and reasonable return, it was re- quested that the-council approve a change in rates for residential and commercial service. The proposed rate increase, as presented by the Company, would provide the Company with an increase of 23.22%. Eddie Anderson, owner of the Commmmity Laundry, protested the recent rate in- crease under his new industrial contract. Former],y he was paying 19¢ per cubit foot but it had been increased to 25¢ per cubit foot under the new contract. He estimated that the increase resulted in an increase in his monthly bill of apprcz1=te3y $50 or $600 per year. W. Massey informed the C4*oj2 thl t- only • two (2) business houses operated under industrial rates within the City of Baytown and both of these were laundries. Jack Hinds, attorney for the Gas Company, told the Council that this was a uniform industrial rate being used throughout the company's system. Representatives from several of the Usaaers were present and they informed the Council that Houston a mmezoial users were charged a laver rate than the same type commmeucial users in Baytown. W. Hinds explained the differenop in rates by stating thAt Houston was serviced by three (3) gas companies, thus putting rates In this area din a competitive basis. Too, in previous years, the Gas Company had signed competitive long -term .contracts with commercial users under the low gas rate. Some of the contracts extended for as many as ten (10) years and the Company was now having to live them out, however, in the future no contract will be for a longer duration than one (1) year. In concluding the morning session Councilman M. L. Campbell asked that Mr. Massey prepare a list of rates of surround- ing cities serviced by the Gas Companys the Houston area included, and present them for comparison at the afternoon session of the rate hearing. Before continuing with the Gas Rate Increase Hearing, Mayor Pruett asked per- mission from the Company officials present to consider a proposed amendment to the city's subdivision ordinance. Permission granted the amendment was presented to the council for consideration. After one or two changes were made, Councilman M. L. Campbell moved to adopt the following amdndment to Subdivision Ordinance Noe 114, to -wits t e% \J SECTION 31 In lieu of the subdivider completing the above items before City Council finally accepts and approves said plat, and after preliminary approval of the subdivision as set out herein, the Council may, in its sole and absolute discretion, premit such subdivider to execute and deliver a corporate performance bond, approved by the City Attorney, and made payable to the City of Baytown in an amount not to exceed the cost of said subdivision improvements as determined by the City Cc ncil, guaranteeing that all of such tteme of construction in the section of said subdivision being presented by the sub- divider for final approval will be completed in accordance with the plans and specifications heretofore, filed with the City and granted preliminary approval by City C-ouncil, and upon the furnishing of such band by the Subdivider and its acceptance by City Council, the plat of the section of said subdivision being presented for final approval shall be accepted and signed by the proper officials for retarding, as provided herein. Councilman H. M. Campbell seconded the action* .The roll call vote v4p as follows Roll Callt fleas flcuncilmen Mears Nayst None " Bergeron " H. M. Campbell " M. L. Campbell " Cron. " tusk Mayor Pruett 8aarin¢._Bamned The rate list as requested by Councilman M� L. Campbell, was presented for comparison. The monthly rate of Houston area (Pasadena included) $3.76; Galveston, $4.28; Ia Porte, $4.80; Baytown, $3.80. The residential increase, if granted as requested, will increase the average monthly bill of Baytasncusers to $4.64. The Council seemed convinced that the gas rate set by the 1953 City Council did not increase the revenue intake of the Gas Company for the year, 1954, however, it was concerned over the recent industrial rate increase which was levied without Council knowledge. Since it was aammmon2y.known that the Council had authority to regulate any rate set by the Gas Company, the Council discussed the possibility of exercising its rights to regulate industrial rates. Heretofore this had been excliAed from regulatory rates by the Council. Mr. Hinds assured the Council that it would be notified in the future should any Industrial rate increase be anticipated. At the conclusion of the hewing the Council indicated that it favored granting the Gas Company a gas rate increase, however, the amount was unknown at the present time. In order for the Council to make a thorough study'and analyse the percentage incregse clearly, Councilman M. L. Campbell asked that the Gas Company perpare a chart of the revenue derived from the percentage increase as set forth, to -wits 2J%9 5%, 7J%1P 10%9 320so 15¢, 17J%, 20% and 23.21%9 He asked that a copy of the chart be sent to each councilman and careful study will be given before final action is taken on the rate increase request. The Mayor informed the Company representatives.that a special meeting will be called if the council so desires after study is made. Councilman M. L. Campbell moved for the meeting to adjourn. Councilman Bergeron seconded the motion. The ayes were unanimous and the Mayor declared the meeting adjourned. ATTESTt Edne Oliver, City Clerk R. H. Prue t , Mayor