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