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1964 11 18 CC Minutes, Special2083 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF BAYTOWN, TEXAS November 18, 1964 The City Council of the City of Baytown met in special session on Wednesday, November 18, 1964 at 6:30 p.m., in the Council Room of the Baytown City Hall with the following members in attendance: J. R. Barnes Councilman David C. Clark Councilman Kenneth E. Badgett Councilman Seaborn Cravey Councilman M. E. Lively Councilman J. C. Huron Councilman C. L. Liggett, M. D. Mayor Fritz Lanham City Manager George Chandler City Attorney - Absent: Edna Oliver City Clerk The Mayor called the meeting to order, the Invocation was offered, afterwhich representatives of General Telephone Company of the Southwest were called on to make their presentation to the council concerning plans for the installation of extended area telephone service from Baytown to Houston. The Presentation - Company Representatives . Mr. E. 0. Cambern, District Manager of General Telephone Company, introduced Mr. W. A. Leigon, Division Manager - Robstown, Texas - to the Council and stated that Mr. Leigon would make the general presentation. He began the-presentation by explaining that General Telephone has been working with the Bell System for several months on the fundamentals for the installation of extended area telephone service to its Baytown System. Early negotiations revealed Bell's reluctance to include all of the Baytown system.in the second tier of metropolitan telephone service. In September, 1964 Southwestern Bell indicated a willingness to include all of the corporate limits of Baytown within their second tier and an additional area just beyond the north boundaries of the existing corporate limits of Baytown. Bell's basis for establishing only the area they were willing to include in their second tier boundary was that any additional area be- yopd the proposed lines would be unfair to existing Bell customers outside the second tier metropolitan plan. Bell contended they could not logically extend second tier metropolitan coverage to the Baytown area beyond the scope of existing second tier service. General Telephone's basis of asking for the extended area coverage was that Baytown's growth potential extends beyond the second tier inclusion recommended by Bell. Mr. Leigon stated that negotiations were continuing to have the area expanded by Bell. If after another series of discussions with Bell, re- veals the Bell officials are not willing to expand the area, Mr. Leigon will ask the council for help in response to Mr. Barne's offer to assist General in gain- ing the expanded coverage. Mr. Leigon presented some statistics to bear out General's contention that they were continually upgrading Baytown's telephone service. The following facts were quoted by Mr. Leigon: "In December, 1959 General Telephone Company had 2,517 residence -one party phones in Baytown or 30% of the total. There were 528 residence 2 party - phones, 6%. and 5,261 residence 4 -party phones, 64%. In contrast, by September, 1964 there were 4,851 residence one -party phones in the system representing fifty (50%) percent of the total. There were 793 residence two -party phones, eight (8%) percent, and 4,111 residences with four -party phones, or forty -two (42%) percent. By December of this year there will be 5,013 residence one -party phones, 5196, 779 residence with two -party phones, 18%, and 3,963 residence with four- partyEhones, 41%. Forecasts for 1968 indicate the following: 7,516 residence one -party phones, 68%, 2,169 residences with two -party phones, 20%. and 1,377 residences with four - party phones, 12%. General Telephone plans to continue the gradual elimination of residence four -party phones until there will be none in the system." 2084 Council's Questioning George Chandler, City Attorney, asked Mr. Cambern if there were not some General Customers in the corporate limits of Baytown who were still being charged mileage fees for telephone service. Mr. Cambern replied that there were seven such customers. Upon being advised by Mr. Chandler that this was in violation of the ordinance under which General was operating in Baytown. Mr. Cambern assured the Council that this practice would be eliminated immediately. Mr. Chandler suggested that a refund of those previous unwarranted charges should be in order. Councilman Barnes suggested that General Telephone Company deliver a memo to City Manager Lanham upon correction of this inequitable charge, advising the City what action was taken by General.Telephone. Mr. Leigon assured the Council remedial action would be taken immediately and the memo would be forwarded to Mr. Lanham. Mr. Leigon presented an illustration of the cost impact on both General and Bell Telephone Companies by the installation of extended area telephone service to Baytown. General Telephone Company, by ticket audit, has determined that 55% of the long distance calls originating in Baytown terminate in Houston. It is anticipated that General's investment in additional equipment and loss of revenue from long distance calls to Houston will not be offset by the establishment of extended area rates comparable to those charged by the Bell System for their second tier customers. Rental payments to the Bell System will be based on the flow.of calls into the Houston and credits to General Telephone will be applied on flow of calls to Baytown from Houston. Previous audits reveal Houston recieves a definite advantage in ratio of calls between the two cities; however, Mr. Leigon assured Council that the Board of Directors of General Telephone indicated a firm desire to offer this service to Baytown on the same rate structure Bell charges its second tier customers. Those rates areas follows: $19.00 month for Business one phone 1.75 mod.h for Business extension phones 7.75 month for Residence one phone 6.00 month for Residence two phones 1.25 month for Residence extension phones Mr. Leigon reiterated the fact that once the second tier service area for Baytown is established, it can never be changed. Mr. Barnes replied that he could not visualize this as a serious problem because he felt confident that Harris county is going to grow so rapidly that it should not be too many years before a third tier would be established by the Bell System thereby encompassing most of the area now outside second tier consideration. Mr. Leigon stated that General Telephone Company has already requested of Bell that any of the Baytown area, not finally included in the second tier, be seriously condiered in Bell's plans for the development of third tier. He continued his report with the statement that work is now in progress in the placing of a trunk line from the downtown telephone plant to the Logan exchange office on Bayway Drive and on to the south bank of the San Jacinto River near Interstate Highway No. 10, which will be a vital part of the metropolitan system. However, General Telephone could not forsee completion of the work necessary to install metropolitan service any sooner than thirty (30) months after completion of final negotiations with Bell Telephone. Discussion Continued Councilman Barnes suggested either a speedier implementation of the program or a roll back in present telephone rates to Baytown customers. He reminded General that Baytown is paying higher telephone rates than any of the top fifty (50) cities in Texas. Baytown is now considered to be the 34th largest city in Texas, only the City of Dumas with 2800 telephone customers, is paying higher rates than Baytown. Councilmen Clark and Cravey both expressed dissatisfaction in rates being charged Baytown citizens and requested an explanation by General for what they considered exorbitant rates. Councilman Barnes stated it may be necessary for Baytown to hire a Utility Rate Expert to determine if, and why, Baytown is being charged excessive phone rates. He quoted figures from a report by General Telephone Company indicating net profit for the first nine months of 1964 was at an all -time high. He continued by stating that it may become necessary for Baytown to conduct a full -scale rate hearing in the near future but he was not proposing such a move at this time. Mr. Leigon, in defense of telephone rates charged by General Telephone Company, 2085 related that Baytown is a unique city insofar as providing telephone service is concerned. The geography of Baytown makes it an expensive area to service; in additon, the small number of businesses contribute to higher costs of telephone service. In answer to City Attorney Chandler's question about General's opinion on the formation of State Utility Rating Commission to establish utility rates statewide, Mr. Leigon stated that his company favored such a commission. . Councilman Barnes expressed appreciation on behalf of the Council to the Representatives of General Telephone Company for their appearance and continued efforts to upgrade telephone service in Baytown and asserted once more the desire of the Council to assist them in whatever manner possible to expedite the installa- tion of extended area telephone service in Baytown. Mr. Leigon requested permission to submit an up -dated proposal on the possi- bility of connecting Mont Belvieu and Crosby to toll -free service into Baytown. . The Council approved his request but expressed a lack of interest in such proposal if it was similar to the one previously submitted. Adjournment Councilman Barnes moved for the meeting to adjourn. Councilman Badgett seconded the motion. The ayes unanimous and the Mayor declared the meeting adjourned. David C. Funderburk, Acting C.C. Edna Oliver, City Clerk