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."
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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,
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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