1962 02 13 CC Minutes, Special1720
MINUTES OF THE SPECIAL MEETING
OF THE CITY COUNCIL OF THE CITY OF BAYTOSIN
February 13, 1%2
The City Council of the City:-of Baytown, Texas met in special
session on Tuesday, February 13, 1962, at 7 :00 o'clock p.m. in the
Council Room of the Baytown City Hall with the following members in.
attendance:
Seaborn Cravey
W. L. Ward
C. A. Hansen
Velma J. Ansley
Roy H. Hughes
James M. Bryan
Al Clayton
J. B. LeFevre
Edna Oliver
Absent: George Chandler
The Mayor called the meeting to
ed, afterwhich, the City Manager was
vestigation of the system used by the
of supplying gas to Baytown.
Councilman
Councilman
Councilman
Councilman
Councilman
Councilman
Mayor
City Manager
City Clerk
City Attorney
order, the Invocation was offer -
asked to give his report of an in-
gas company for determining the cost
City Manager's Statement - Houston Natural Gas Corporation - Rate Increase
"I visited the Houston office of the Houston Natural Gas Corp.,
in an effort to determine what methods the company used to prorate cer-
tain indirect ex to the City of Baytown as shown as their "State-
ment of Operation, Baytown Palnt No. 281." No attempt was made to deter-
mine the accuracy of their figures; only the basis used to allocate cer-
tain expenses of the City.
"I am convinced that the methods used are sound and in accordance
with accepted accounting practices, however, considerable doubt remains
in my mind as to whether the method ;used to determine the "rate base"
in Baytown is sufficiently accurate to be used as a basis to figure the
rate of return on net investment in the City of Baytown."
Discusstion - Varied
Jackson Hinds, Vice President of the Company, again reviewed
the schedule of present and proposed rates and elaborated on the general
operation procedure of the Company; it was his contention that the company
was not making an excessive return on its investment in Baytown. The
discussion included income tax proration, weather factors and other opera-
tional costs which made Baytown differ from the rest of the system. The
Council asked that the rate assessed against Baytown consumers correspond
with the other towns and cities included in the system. This rate is 5.44%
against the 5.94% for Baytown. The discussion also included possible rate
hearing before the Texas Railroad Commission. If this was decided upon,
Mr. Hinds assured the Council that the Railroad Commission was consistently
granted gas companies in Texas a 6* per cent return on their investment
and this would make rate per consumer much higher than the rate the company
is now requesting. As it was evident that no decision would be reached at
this meeting, further discussion was tabled until the February 22nd meeting.
Ad_i ournment
Councilman Cravey moved for the meeting adjourn. Councilman Ansley
seconded the motion. The ayes were unanimous and the Mayor declared the
meeting adjourned.
ATTEST :; Al Clayton, ayor
l.it-
na Oliver, City Clerk