1958 06 25 CC Minutes, Special,/ d /
MINUTES OF THE SPECIAL MEETING OF
THE CITY COUNCIL OF THE CITY OF BAYTOWN,TE%AS
June 25, 1958
The City Council of the City of Baytown, Texas met in special session on Wednesday,
June 25, 1958 at 7:00 o'clock p.m, in the Council Room of the Baytown City Hall with
the following members in attendance:
C P. H. Mears Councilman
J. C. Garrison Councilman
W. D. Hollaway, Councilman
Al Clayton Councilman
Lacy Lusk Councilman
R. H. Pruett Mayor
James W. Harrison City Manager
George Chandler City Attorney
Edna Oliver City Clerk
Absent: W. L. Ward Councilman
The Mayor called the meeting to order, the Invocation was given, afterwhich,
the following business was transacted:
Special Hearing - Telephone Rate Increase Reouest
As a result of the action of the Council at the regular meeting of June 12, 1958,
the Mayor stated that the meeting was called for the express purpose of conducting a
Special Hearing on the formal request of the General Telephone Company for a rate
increase for local telephone service in Baytown. Mfr. Joe Ware, District Manager,
presented the Council with brochures which had been prepared by the Company to familiarize
the Council with the operations of the Company and some of theproblems confronting it.
City Manager Harrison presented his study which was made as a result of the Council's
authorization at the same meeting; a report which set forth four (4) exhibits showing
— the extension of service that has been requested by citizens and actually installed
by the Telephone Company since the last rate hearing was held, the anticipated
increase of the Company would need to make a 6% net return to their investor, the state of
Net Operating Income of the Company ended December 31, 1957 for the Baytown Exchange and
a gross revenue requirement to earn for the Company the requested 6 %. At present the
Company reflectes an earning of 3.6% on its investment and in order to allow the Company
a net of 6% it will be necessary to approve a 26.5% gross revenue increase. Mr. Ware
elaborated on the recent improvements made by the Company on extensions, underground
cable, central office equipment and pole lines which will provide better customer
service, Should the Council grant the 26.5% gross increase, the rates will be in-
creased to Business, 1- party, 814.00; Business, 2- party, $11.00; Residential, 1 -party
$7.00; Residential, 2- party, $6.00; and 4-party, $4.60. The Council agreed that the
Company was due an increase, however, the 26.5% figure was in excess and Mr. Ware
was asked to submit a compromise figure. He proposed a 20% increase figure; Councilman
Lusk and Mayor Pruett suggested that final action be deferred on the proposal in order
to allow time for study. The Council may be able to present a figure which will be
in agreement with both Council and Management. A majority of the Council was not
in agreement with the proposal to defer action so, after a lengthy discussion by the
Council, a compromise figure of 19.1% increase was presented. Mr. Ware agreed to the
compromise increase figure, afterwhich, the City Attorney was instructed to present the
ordinance which will grant the increase as follows: Business, 1- party, $14.00; Business,
2- party, $11.00; Residence, 1- party, 06.50; Residence, 2- party, $5.50; Residence,
4- party, $4.50; rates to become effective as of July 6, 1958. Councilman Garrison
moved to adopt the ordinance granting the 19.1% gross revenue increase. Councilman Hollaway
seconded the motion. The roll call vote was as follows:
Roll Call: Ayes: Councilman Clayton Nays: None
" Garrison
Hollaway
Hears
Lusk
Mayor Pruett
The caption of the ordinance follows:
/ffe
ORDINANCE NO. 495
AN ORDINANCE REGULATING THE RATES OF THE GENERAL TELEPHONE COMPANY
OF THE SOUTHWEST IN THE CITY OF BAYTOWN, TEAS; PROVIDING A REPEALING
CLAUSE; PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR THE PUBLICA-
TION AND EFFECTIVE DATE THEREOF.
Adjournment
Councilman Clayton moved for the meeting to adjourn. Councilman Lusk seconded
the motion. The ayes were unanimous and the Mayor declared the meeting adjourned.
ir
R.' H. Pruett, Mayor
ATTEST•.
6L, -
Edna Oliver, City Clerk
I