HomeMy WebLinkAboutCC 1978-04-24 Minutes
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MINUTES OF THE REGULAR MEETING OF THE CITY
COUNCIL OF THE CITY OF NORTH RICHLAND HILLS,
TEXAS, HELD IN THE CITY HALL, 7301 NORTHEAST
LOOP 820 APRIL 24, 1978 - 7:30 P.M.
CALL TO ORDER
Mayor Pro Tern Cato called the meeting to
order April 24, 1978, at 7:30 p.m.
ROLL CALL
PRESENT:
Mayor Pro Tern
Councilmen
James F. Cato
Denver Mi 11 s
George Conant, Jr.
Sidney Cavanaugh
Dave Freeman
Lena Mae Reeder
Councilwoman
STAFF PRESENT:
City Manager
City Secretary
City Attorney
Ci ty Engi neer
Director Public
Works
M. E. Riddle
Jeanette Moore
Rex McEntire
Dick Perkins
Ray H. Britton
BOARD MEMBERS:
Zoning Board of
Adjustment
Jo Ann Wi 11 i ams
ABSENT:
Mayor
Tom E. Newman
Mayor Pro Tern Cato recognized Dave Burket
of Sanger Harris.
INVOCATION
The invocation was given by Councilman
Cavanaugh.
APPROVAL OF MINUTES
Approval of Minutes of the April 10, 1978,
Meeting
Councilman Mills moved, seconded by Councilman
Conant, to approve the minutes as written.
Motion carried 5-0.
BIDS
Opening of Bids on Water and Sewer Bonds
Mayor Pro Tern Cato advised the Council the
bids were opened at 3:00 p.m.. and Mr. Harold
McInroe would make a report on the bids.
Mr. Harold Mclnroe, First Southwest, appeared
before the Council. Mr. McInroe stated the
bids had been tabulated and the apparent low
bidder was E. F. Hutton & Company. He advised
First Southwest was pleased with the bid and
pleased with the rating. Mr. Mclnroe stated
the rates were based on the history of the
city. He stated Mood's was pleased with
the city officials and felt the city was under
good management. Mr. McInroe stated they
had received three bids. Some of the names
on the bid list were the very best.
Apri 1 24, 1978
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Mayor Pro Tern Cato advised the Council
item #6, would be moved to item #20.
ORDINANCE #699
Approval of Ordinance authorizing the issuance
of $3,500.00.00 in water and sewer revenue bonds
Mayor Pro Tern Cato read the caption of the
following ordinance:
"An ordinance by the City Council of the City
of North Richland Hills, Texas. authorizing
the issuance of $3,500,000.00 "City of North
Richland Hills. Texas, waterworks and sewer
system Revenue Bonds. Series 1978," dated
June 1, 1978, to provide funds for the purpose
of making permanent public improvements. to
wit: $2,880.000 to improve. extend and repair
the Waterworks System and $620,000 to improve
extend and repair the Sanitary System, as
authorized by the General Laws of the State
of Texas, particularly Article 1111 et seg.
and Articel 2368a, V.A.T.C.S.; prescribing
the form of the bonds and the form of the
interest coupons; pledging the net revenues
of the City's combined Waterworks and Sanitary
System to the payment of the prinicipal of
and interest on said bonds; enacting provisions
incident and relating to the subject and
purpose of this ordinance; and providing
an effective date."
Councilman Mills moved, seconded by Councilman
Freeman, to approve Ordinance 699. Motion
carri ed 5~~L
Councilwoman Reeder asked if this would
include Watauga.
Mayor Pro Tern Cato advised it would.
RESOLUTION 78-5
Approval of Resolution of official statement
concerning the issuance of $3.5000.00 in
water and sewer revenue bonds
Mayor Pro Tern Cato read the following
Resolution:
"RESOLUTION APPROVING THE OFFICIAL STATEMENT
PREPARED IN CONNECTION WITH THE ISSUANCE AND
SALE OF BONDS
On this, the 24th day of April, 1978, the City
Council of the City of North Richland Hills,
Texas. convened in regular session at the
regular meeting place thereof in the City
Hall, the meeting being open to the public
and notice of said meeting having been given
April 24, 1978
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as prescribed by Article 6252-17, Section
3A, V.A.T.C.S.. with the following members
being present and in\attendance to wit:
James F. Cato
Sidney Cavanaugh
Dave Freeman
George Conant
Lena Mae Reeder
Denver Mills
Mayor Pro Tem
Councilman
Councilman
Councilman
Counci 1 woman
Councilman
and with the following absent: Mayor Tom
E. Newman, constituting a quorum; and among
other business considered at said meeting a
resolution was submitted to the City Council
for passage and adoption, such resolution
being as follows:
WHEREAS, in the Official Statement dated
April 3, 1978 prepared in connection with
the issuance and sale of $3,5000.00 "City of
North Richland Hills, Texas. Waterworks and
Sewer System Revenue Bonds, Series 1978."
dated June 1, 1978, it is provided that the
City will furnish to the purchaser, as a part
of the transcript of proceedings, a certified
copy of a resolution of the City Council as of
the date of the sale of the bonds which will
approve the form and content of the Official
Statement, and any addenda, supplement or
amendment thereto, and authorize its further
use in the reoffering of the bonds by the
purchaser; now therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF NORTH RICHLAND HILLS. TEXAS: That
the Official Statement prepared in connection
with the issuance and sale of $3,5000.00
"City of North Richland Hills, Texas, Waterworks
and Sewer System Revenue Bonds, Series 1978"
is hereby approved as to form and content and
the further use thereof in the reoffering of
bonds by the purchaser is hereby approved
and authori zed."
Councilman Conant moved, seconded by
Councilwoman Reeder. to approve Resolution
78-5. Motion carried 5-0.
A FIVE MINUTE RECESS WAS CALLED.
Apt'il 24, 1978
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Mayor Pro Tern Cato called the meeting
back to order. The same Council Members and
Staff were present as recorded at the
beginning of the meeting.
Mayor Pro Tern Cato advised the Council
item #18 would be moved up at this point.
PUBLIC HEARING
LONE STAR GAS
Public Hearing on Ordinance No. 697 concerning
Lone Star Gas rate increase
Mayor Pro Tern Cato stated the City had hired
experts to make a study of the rate increase.
The Council would hear them and then open
the floor to citizens.
City Attorney McEntire asked Mr. Travis
Smith, of Associated Utilities to please
come forward.
SEE ATTACHED TRANSCRIPT OF THIS PART OF
THE MEETI NG.
5
NORTH RICHLAND HILLS CITY COUNCIL MEETING
Cato:
We will have a 5 to 10 minute recess for the purpose of
signing the resolution....... With your permission, I
would like to move Item 18, the public hearing on
ordinance 697 concerning Lone Star Gas rate increase,
up to this point, before Item 9. Are there any objections?
We have, as a city, hired the team of experts to study
the Lone Star Gas rates in this area in conjunction with
the study they were doing for other cities in Northeast
Tarrant County and from that study has come a proposed
ordinance that we will hold a hearing on tonight. The
order of business in the hearing will be the presentation
of the proposed ordinance and history, the experts'
testimony with questions by the attorney, examination by
the council of the experts' testimony, and then we'll
open the floor to questions from the citizens. It will
not be required that you fill out a slip; just let me
know by holding up your hand. Please remember to be
precise and address the chair at all times. We don't
want any name calling between people and no personalities
entering into it. Okay, with that I will open the
hearing on the presentation of the proposed ordinance and
history of the filing of the city's utility ordinance 697
setting the gas rates to be charged by Lone Star Gas.
Rex:
In connection with this ordinance many of you know on
October 31, 1977, a schedule of rates was filed on the
city of North Richland Hills. The schedule of rates was
basically $4.00 for the first 1,000 cubic feet and, I
believe, $2.16 thereafter - or $3.16 - it's a lot more
than our study indicates they're entitled to. After
receiving this. I have been involved in a series of rate
cases with this company and we have had some experts that
this city engaged to analyze the request and to analyze
the filing. As a result of that, we came up with the
following ordinance. The ordinance provides for a rate
of $2.50 for the first 1,000 cubic feet, $1.8625 for
each 1,000 feet thereafter. We also established a base
for their MCF level of $1.6598 which means that their
GCA is not going to be able to go above 34ç.
(Someone interupts)
Yes. We'll bring all these out when I put them on the
stand, I think, to let you know what the ordinance is at
this particular time. Now currently, you are on a rate
of $2.59 for the first thousand and $2.09 for each thousand
thereafter. Your present base for gas cost adjustments is
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$1.03 - in that neighborhood. This raises that ..
Cato:
$1.20, I believe.
No, I believe it's $1.03. $1.301. And this raises it
to $1.65. Now the impact of this is that the gas cost
adjustment can not go as high under this ordinance as it
can under our present ordinance. We're requiring the
normal report to be filed that we've always required to
be filed and we're asking for some additional data -
Section 2 - concerning natural gas delivered to residential
and commercial customers under rates authorized by this
ordinance. Sections 2 and 3 and 4 are ordinary sections
dealing with jurisdiction of regulatory bodies, and
notices and Section 6 is a new section - it's been thought
for some time that the cities were not able to regulate
public service contracts with natural gas producer and
these are your industrial contracts which you've never
seen before and we have discovered that we believe and
I think everybody does now agree that we are able to do
this. So, Section 6 - Section 5 - which is one that was
handed you tonight contains the clause that the public
service contract. industrial contract, will be approved
by the city council prior to the time they are effective.
It gives them 60 days to get the ones to us that are
existence at the present time. At this particular time
I would like to bring Mr. Smith forward for presentation
?f the rate case to the council and if we could, I think
it would be better if Mr. Mills would trade seats with
òne of these empty ones and put him at the other end of
the room where Mr. Mills is sitting where he can use his
papers and I can question him from here and there's a
better chance he can be heard, I believe. You mind. Mr.
Mills?
Smith:
My name is J. Travis Smith. I represent Associated
Utilities.....
Mr. Smith, would you tell the council roughly, your
background in this field.
Smith:
I function as management consultant in this company. I
have had 25 years background experience in public utilities
and have been with Associated Utilities some three years.
Are you currently analyzing rates for other cities?
Smit h :
Yes, we are currently analyzing rates for 8 - 7 other
cities.
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Have you analyzed rates in connection with the October 31st
filing with the Fort Worth office?
Smith:
I have, yes.
Rex:
Since the time you were first engaged by the other cities
as well as North Richland Hills, will you describe to the
council what you have done to procure data and how you
have analyzed it.
Smith:
Well, basically, our approach to the rate analysis has
been one that involves requesting and, in some instances,
requesting authorization to review and analyze at the
company's home office all the documents and transactions
that have impact upon the rate application of October 31...
Rex:
Have you been furnished certain information by Lone Star
Gas that you have requested?
Smith:
We have.
Rex:
And is there some information that you have not been
furnished?
Smith:
As of this week, we've been furnished..... all of the
information that we basically requested. There are one
or two items that we do not have.
Rex:
Have you been furnished anything in demand upon them for
their gas purchase contracts?
Smith:
The only item which I have received relative to gas purchase
contracts is the conventional gas purchase register which
is a part of both the Railroad Commission and the Court of
the state of Texas and the annual report to the federal
government.
Rex:
Would you tell us in connection with your examination of
their books and the investigation you've made if you've
established a rate base or rate basis?
Smith:
I have, yes sir.
Rex:
And would you describe to the council the rate basis you
have come up with as a result of your investigation.
Smith:
We have established two rate bases - one constituting the
adjusted value of the invested capital which actually
allows and considers a reasonable balance of utility
plans between original cost and depreciation reserve and
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current cost less an adjustment for ...... And we have
also constructed and used a rate base which considers
solely.......accounts. The two are entirely different
things.
Rex:
All right. Would you explain briefly what the fair value
was - your adjustment value - would you tell them what
the invested capital was.
Smith:
The invested capital rate base is basically the depreciated
book value of property plus or minus certain adjustments
which are authorized or recommended.........
Rex:
In establishing the rate that you have come up with in
this ordinance, would you tell the council the rate of
return, based upon your professional opinion, with
respect to each rate base.
Smith:
The rate of return for the past year presented by the
company which was for the 12 month period ending "June 30,
1977, in relation to our adjusted value rate base is
13.45%. The rate of return in relation to the .....
council rate base is 15.82% and a common rate of return
between those two is 14.54%.
Rex:
All right. In making this particular calculation, did
you take into consideration increases in connection with
the industrial sales in the city of Fort Worth and count
that as income and allocate it to this particular system?
Smith:
No, we did not. There are certain changes in industrial
rates and, of course, corresponding changes in industrial
revenue that have transpired since October 31. Year-end
figures as of December 31, 1977. represent quite a
differential in industrial earnings or revenue per MCF
of gas. We did not use that revenue ....... in our
analysis.
Rex:
Do you come up with some other different figures in
connection with the use of those revenues?
Smith:
If you were ........ revenue figures, actually the
implementation of the ordinance....... the rate of return
for the Fort Worth Distribution System would be some 13.73%
and 16.16% on the invested capital.
Rex:
You had come up with some figures near the 8% level in
connection with rate of return. Would you tell the council
what those were? How you arrived at them?
Smith:
Completely disregarding the revenue differential between
June 30, 1977, the rate differential on industrial accounts,
and the earnings rate of industrial accounts as of
December 31, 1977, implementation of this ordinance for
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the ..... Fort Worth Distribution System would yield a
return of 8.31% on your invested capital rate base, some
7.1% on the adjusted value base. That is the .........
industrial rate structure as it existed as of 6/31/77.
What is the rate of return requested by the company in
your file?
Smith:
Some 8.16%.
Does this get you close to this particular figure by
using this calculation?
Smith:
Most assuredly it does and with the knowledge of the
..... furnished by the industrial contract rate and the
revenue...........
Would you tell the council the effect of the base for
figuring gas cost adjustment in this ordinance.
Smith:
Well, basically under your present ordinance you have no
limitation on gas cost adjustments. I would point out to
you that your present .. .... base is $1.301 which probably,
I think, the current city gate rate ........ is somewhere
around $1.83 or $1.84. So, you see that your cost is
about some 62¢ or 63¢ differential in relation to the gas
cost adjustment. Under the proposed ordinance, there
would be a......... of course, for a $2.00 gate rate.....
which incidentally is very fair because we take into
consideration the maximum deviation or gain in the unit
cost of gas that the company has experienced on an average
for 3 or 4 year and it does give the company the favorability
of recovering their increased costs of gas.
Based upon your opinion, you feel the ordinance would give
the company a fair rate of return.
Smith:
I do, yes sir.
Do you recommend it passing?
Smith:
I do.
Any questions from the council in connection with rate
base, rate of return, or any other matter you testified
to at this time.
(Could not hear question asked)
That is perhaps in consideration of...... revenue for the
industrial account......... in the rate application
industrial accounts are considered as a part of the whole
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application and if the rate of return is calculated in
the same way as the rate application is calculated, you're
dealing with a 13.45% return on your adjusted value rate
base .......
Mills:
Are you saying the city is subsidizing the cost.........
Smith:
I'm saying that, yes sir, up through 6/77 the revenue for
commercial accounts were subsidizing industrial accounts.
As an illustration, in the year 1976 the average revenue
per MCF of industrial gas was $1.513. As of December 31,
1977, that average per MCF of industrial gas sold has
escalated the $1.861 - some 35¢ differential. That's the
reason I was making sure ........ That's purely
theoretical and could never exist.
Rex:
What you're saying the subsidization that we suspected
previously has been largely done away with with increases
to industrial users throughout the district since the
application was made which we did not become aware of
until recently.
Cavanaugh:
Yes, I'd like to ask to you know what the current rate
is per cubic foot Fort Worth is paying.
Smith:
Fort Worth is paying almost $3.01 for the first step and
I believe approximately $2.19 for the second step.
Ca vanua'gh:
OK, how about Dallas?
Smith:
Dallas I do not know.
Cavanaugh:
Well, my question is I called Dallas utilities and they're
paying $2.30 per thousand, $1.84 for the next 7,000, $1.74
for the next 12,000, $1.68 for the next 30,000, and $1.63
for the next 50,000. Why is it that the small community
always has to pay more?
Smith:
Well. I'll be perfectly frank with you. The area of Irving
a municipality of the Dallas area has ....... subsidized
the Dallas rate. This has been true in the gas rates.....
..... in my opinion, the municipalities have not been
willing, traditionally. to thoroughly investigate the
relationship between their service in their city and actual
cost of service justified for the services they receive.
In this case, of course, you were presented with an
application that encompassed a rate structure for all 17
cities that make up the Fort Worth Distribution. We asked,
and so far have been upheld in ......., that the cost of
service and the rat,e base be segregated and allocated in
such a manner as each individual city would know basically
where they stand at least as far as rate of return. I'm
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not at all recorrrrnendlng :. ·'tvicrualized rate structure
for each municipality bl' H: :.Ls ilDpor'tant that the pjeces
that make up the ,total T\,rt \j'ürí:h Distribution System he
isolated anåÇ<:~·'h·'.t/. to UH:', otals wit.h which you are
presented.
Cavanaugh:
OK, next question.
increase of 14.54,
Iry,r¡¡lre B.Gking for an adjusted rate
is t:llal. the rate increase?
Smith:
I'm not really asking I've
Cavanaugh:
Well, no, I mean that "j,l (.;Ill:;;t ,¡Jag recommended '" a 14. .'}/j
Smith:
. . .. this ordinance bCC::U~~f,
structure represented i~
for the Fort Worth DL1 Î', .ibu
of the ffIet that the rate
;.kEf; provide a fair return
(jTi System>
Cavanaugh :.
What is the return thc:y c(
;)ranteed'? 8%?
Smith:
They really, Lone St,] ¡: actuall'y guaranteed a ratr~
or return. They're men {,,:aranteed the opportunity to
earn the ..... rate. 'TLi. v Iif1ve, traditionally, only asked
for 8%. This time thcy.rc ;; l;}.JJg a somewhat different
. . .. .. at: le8st in thc' l'psnr·{·t that ,the,,! h8vp..<:::om.e: in and
nt, i Ii.zed SOID£. of the. {'O("F0,nj'; 01'\2",1 ~. ~ ~. .t)....e terms.
factor ...... but the (C ¡¡(Ii 'I lng. in the. ordinance or
.in the present rate ~; L, ,'tUFt· í.hat gu,:u:aní~ees them that
they will earn that pen (:ut,
Cavanaugh:
OK, I just have one mol.'
information to you stat
collected from North Hi,
then showed you a pn' í
C!uu;.t:Üm, IUd t.hey funÜßh j-he
the total amount of revenueß
:rland HJJls VB. the total COfJt and
T- i. 08Sft
Smith:
We have not been fureLn.
Hills but we will compl<
have not furnished un,
cd Vi:! th the data on North
, . , , , , . .. \'¡e asked for,
ttll thiH.....".
Ríchland
h¡¡t~ they
Cavanaugh:
Rex:
OK, what would happen
if we voted it down?
Vie did not vote for this ordinace,
Your problem, I can dilm'·icr If.is ~ your problem in connection
with this is on May 4 L! (,Je don ¡ t act, the rate - the $/f. 00
rate - goes into effecl: v:i Ttue of the fact that the tim(è
is up. We r re given 120 \.iaYh plus 30 days and 35 days and
we t ve added all those ur and ì.,7e ¡: re ri g11t down to the.,.,.,
law and when. we have to f;t; it"
Cavanaugh:
Being a new city coun~l! '.~n.
end?
did ue wait till the very
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Rex:
Well, we didn't as a matter of fact. We didn't wait until
the very end. We're been trying to get the data for
months and some of the data just has not been forthcoming.
What your problem is is this. When we were down in Austin,
the other rate cases, they were attempting to dig up this
information city by city by city which Lone Star basically
does not have. And so in order to drag it out of them, we've
done our best to get it and we've got it for most of the
cities. We just don't have it all for North Richland Hills
yet. But there's no reason to believe there will be any
substantial difference in North Richland Hills, Richland
Hills, Haltom City, these cities right here together. We
don't believe there will be any substantial difference....
... capital income, that kind of thing.
Cavanaugh:
My only concern is I look at Lone Star as a public owned
company trying to make a profit just like anybody else and
according to the Robert Patton law, you have to sell the
same price to everybody and utility companies, traditionally,
have never done this. They get what they can from any
place they can and it just bothers me why Dallas gets $2.30
and we have to pay $2.50 and if we don't act we're going
to have to pay $4.00.
Rex:
Well, Dallas, of course, does not have a lid on th~ir GCA.
They can float up to 70¢ on there; they can be much higher
than we are. We are now currently paying 53¢ on top of
the $2.58. See, we're currently up to over $3.00.
Smith:
I would make just one statement, Mr. Kavanaugh, I agree
100% with what you say and there is no doubt, in relation
to the Dallas rates, a certain amount of subsidy has always
existed and existed simply because Dallas as a large city
does have a utility rate regulatory section and they have
traditionally taken the lead and been agressive in relation
to the handling of the rate applications but they have also
managed to pass off a considerable amount of cost of
service to suburban cities. Now your question about the
passage or non-passage of this ordinance the most important
thing is one that Mr. McEntire outlined to you. There is
a great deal of money involved in relation to the gas cost
adjustment and your currently pegged as $1.301. The
average purchase price increase on, for the average purchase
price of an MCF of gas in the year 1977 was .29954¢; the
average increase per MCF for gas purchased in the year 1976
was only 3924l¢ so you can see that the comparison base as
its set in your current ordinance is responsible for your
paying a great deal more in terms of GCA than you should
be paying. Now, it is our intent that the ordinance you
have before you that satisfies a comparison base of 1.6598
is a fairly determined comparison base against which gas
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Freeman:
Smith:
Rex:
Freeman:
Sm"ith:
Conant:
Smith:
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cost adjustments should be
escalation that is allowed
to the company's actually
gas.
compared and the 34¢ flexible
is a fair escalation in relation
experienced increased cost of
Two quick questions. Do you think you'll have problem
getting hold of these gas purchase contracts?
Yes, Mr. Freeman, I think there will be problems involved
in getting release of purchase contracts because traditionally
they've been regarded as somewhat a secret and in the past
five to six years they have grown more so. I think that
Mr. McEntire, after reading one of the articles in the
newspapers, I think he's definitely has a valid point that
he is pursuing and everything that I have looked at just
reinforces that opinion.
I have requested this on your behalf and before this
meeting's over in connection with this hearing, I would
request authority in the event I'm not provided with this
information, that I be authorized to request an audit by
the agency that took the place of the Federal Power
Commission and/or the Railroad Commission because if we
are being subjected to favored seller problems in this
regard, we need to know about it. There have been some
indications there are some holdouts in . ..... in '75 and
'76, I believe, that have come back in at a much higher
rate. We don't know whether that gas went in the air; we
don't know how much it sold for and how much they paying
for it before and most of the gas we're interested in is
called "half gas". It's around 500 BTUs which means if
you buy a 1,000 cubic feet of it, you only bought 500
cubic feet. They're selling it themselves for $3.00.
(Couldn't hear comments)
We feel that the data we have analyzed, the conclusions
we have drawn from it. the rate base we have formulated,
and the cost of service structure we have developed are
all defensible and that we have a fair rate, right in
that ordinance, that would be fair both to the customer
and to the company if applied to all 17 locations in this
district.
(Couldn't hear comments)
Have the other cities passed the ordinance?
I think the cities we represent I feel have already passed
this ordinance or will pass the ordinance prior to May 4
deadline. I have no reservations......
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Cato:
I have a question for Mr. Smith. The ordinance as it
stands constitutes what percentage of decrease in the
average gas bill.....
Smith:
Actually, I do not. Are you speaking in relation to your
city?
Cato:
Yes, our current rate vs. the proposed rate.
Smith:
Basically, I have not made that comparison. It would
be a decrease largely in the area of your GCA. It would
result in a decrease in your gas cost adjustment.
Rex:
Actually, roughly. it's 9ç on the rate and could be
35-40ç on the GCA.
Cato:
Percentage-wise that would be.....
Rex:
It's hard; you'd have to almost take each bill. I guess
you could take what they call an average bill. of which
there is no such thing, and figure out from that. I
haven't done it.
Rex:
OK. roughly calculate an 8 MCF bill and come up with some
figures as to what that constitutes. You take $2.59 for..
Cavanaugh:
You're going to be running somewhere around $17 and some
odd cents on an 8 MCF consumption plus the GCA. I'd say
the GCA should average somewhere in the area of 15ç if
you went for a full twelve month period based upon the
figures we have there. So ..........
(Can't hear)
Smith:
You understand this, this rate structure .....in that
ordinance actually represents a decrease for some cities
and in some cases it represents an increase.
Ca to:
Any further questions for Mr. Smith?
Mr. Smith, you can step down for now.......
Rex:
Let's leave him there; the audience might want to question
him.
Cato:
Rex:
Intended to call on Mr. Mettler.
I think they've presented the thing twice to us. You have
the rate filings in front of you in amended form....over
the last four or five months.......
Cato:
Ask Mr. Mettler if he wishes to make a presentation.
IS--
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Mettler:
No.
Ca to:
Alright. Thank you.
Are you ready to move on?
Rex:
Ready to move on. Are there any questions from the
public - Mr. Smith or I will be glad to field them for
you.
Cato:
If you would please, step up
your name and address......
this is so we can keep track
to the microphone,
The reason we have
on the tape.
give
to do
(Can't hear)
Smith:
I believe that's correct. The total should be 5997;
the other 1997 is state tax.
(Can't hear)
Smith:
Yes maIm the depreciation of which I spoke is actually
the accumulated depreciation reserve that represents the
accumulation of annual charges made against depreciation
expense for loss and service value on the company property
that you ..... and it is a legitimate expense and the
reserve itself represents the sum total of what has
actually been paid by the customer in paying their bills;
this particular portion of it is in the form of depreciation
reserve that the company has levied last year in the form
of depreciation expense that went into their calculated
cost of service from which your rate structure derives.
(Can't hear)
Cato:
Mr. Smith is with Associated Utilities, not Lone Star.
No, he's with us. ... to analyze the gas company's rate
request.
(Can't hear)
Cato:
Would you explain what the state allows the utility company
to charge?
Smith:
Basically, their depreciation is determined based on
anticipated profit .... as opposed to the ..... class of
property that's represented within their total plant
investment and you have a valid point in one respect,
there is quite often a distortion between the actual
depreciation expense and the subsequent amount that's
made or accumulated as depreciation reserve when you
compare it back against the company's actual experience
in relation to replacement and maintenance property.
Invariably, the depreciation reserve that is accumulated
/¿,
-12-
represents the actual loss in service value on the used
property that is not offset or counterbalanced by the
maintenance the company does annually on their property.
Quite often their actual experience in replacing property
does not really equalize the rate with which the reserve
has been built up. We do not have. and I do not believe
that the company has made, a current or even semi-current
depreciation study and that's quite another area that
we'll address in relation to several other factors such
as rate base, adjustments against the rate base, particularly
on current costs when it comes to the calculation of the
current costs.
(Can't hear).
Anybody else have questions from the audience.
Yes sir.
My name is James ....... I live at 7401 College Circle
South in North Richland Hills and I own and operate a
laundry........ shopping center. I just have a few
comments I want to make about .... things the gas company
keeps hollering about .....a mini-businessman - a small
businessman - I count my savings in cents, not in dollars.
Over the long haul, pennies add up to dollars. In my
place of business down here I have three gas meters and
it just irritates me every month to get three gas bills,
three thirteen cent stamps, three computer cards, three
return envelopes like this to send the bill back to 'em.
I realize these don't cost a whole lot but over a period
of years for my place of business would add up to $10-15.
Eight months out of that year two of these are "no bills"
because I cut the meters off, so there's nothing there for
them to send it out. I don't think they're trying to
economize. That's number 1. Number 2, I'm sure I'm not
the only person that has three or four meters at a place
of business ' cause if you've got a high pressure meter
coming in, as mine is for laundry equipment, and then
you've got heater meters. You multiply this by hundreds
of meters throughout the system - it could add up to
several thousands of dollars of savings a year for these
people. Another thing that I object to is that a monopoly
like Lone Star Gas getting on the radio and television
and newspaper advertising what a shortage they have with
gas and trying to get you to save and then on the next
station you turn to they're advertising buy their gas
appliances from their retail division and I object to
the cities forcing the consumers to subsidize the retail
17
-13-
division. Where do the retail profits show up in this
organization? They got one; somebody's paying for it.
They've got a profit; it's been going into the total gas
picture.
Rex:
Let me interupt here just a second. That's one of the
fictions we take out. We actually do an analysis with
respect to this type of thing and its one of the adjust-
ments we take out of it. We're not taking Lone Star's
figures and figuring this rate base or cost of service;
we taking adjustments for just the very thing you're
talking about.
James:
Alright" then if they don't make a profit, we're
subsidizing their advertising.......
Rex:
Right, and we're not allowing that. This ordinance does
not take this into consideration; says you can't do that.
(Side 2)
James:
Now then, I have tried to cut back in my operations
because I have to, otherwise be forced out of business
because of the gas costs. I have cut the temperature
of my water down, I have put in recirculating devices
on my drying machines and example, in December of '76
vs. December of '77 the same days I was 102 CCF, whatever
that is, less gas than in '76 and yet my costs were $1.94
less than it was before. I don't understand how they
come up with these different rates in different time
slots.
Rex:
The gas cost adjustment is where your difference is.
The rates were the same; you had a different gas cost
adjustment.
James:
Alright. Then you get down to my last one, who supervises
reading of these meters besides Lone Star Gas Company. I
have practically every month in 1976 and '77 called those
people to come out and read my meter. They consistently
refuse to read the meter. They tell me they're reading
that meter and that if there is an error it will correct
itself next month. In December of this past year at one
of the meters which is in the dry cleaning side I had
cut off in April. 1977 and I did not cut it back on in
December, January, February, whatever, it was off all
year and in January I get a bill from 'em, I've got it
right here. for $27.95 on a meter that was cut off in
April. Being an Irishman, I bounced the ceiling awhile
and then in a couple of days I simmered down and I called
down there. And I got hold of a lady and I tried to be
/ç
-14-
as nice as possible and I told her who I was and gave her
the account number and said I would like to have this
meter reread because I feel like there's been an error
made. She takes a very negative attitude to begin with;
"We can't come out and read that meter; if there's an
error made, it will correct itself next month. II I said
then I'll wait until next month to pay my bill. She says
in that case we'll have to come out and cut it off. I
said that's fine and I spelled my name for her and I said
now you be sure that when the man gets out here he shows
me how to cut a meter off that's been off for 8 months and
at that she went silent on the other end and I asked her
if she was still there and she said did you say it's been
off. I said yes, the meter has been off for 8 months and
I got a $27 gas bill and I said there's an error on it.
She said in that case, I'll have it rechecked. She says
call me next week and I'll let you know how it comes out.
I said no, I don't have time to call you next week. ~fuen
you get it corrected. you send me a corrected statement.
So they sent a man out to correct the meter, get a new
reading and I got a corrected statement on it the
following three weeks from then which proves to me that
they're not reading my meter half the time. They're just
going by there putting down figures if they even read it,
and I have some people in the laundry who have put strips
across their meter over in Richland Hills, not here but
over in Richland Hills, because the man was reading the
meter from the street and they put strips across the front
of it and he continued to read the meter. Now I don't
know how they read the meter and I think the city should
provide some kind of a check system to make sure these
meters are properly read because I don't like to be taken
and if I wasn't paying my bills myself as a businessman,
I wonder how many hundreds of dollars they've taken in
on gas bills that no gas was used on. Now that's my
question and I resent very much the way in which they're
doing it.
Smith:
I agree 100% with what you said and I would point out to
you that there are some $345,000 in claimed cost of service
items that have been eliminated from their cost of service
because the type and character of the items are classified
in such categories that should not be included in the rate
application. One of the items which we were not given
that we requested, of course, was a copy of their microfiche
billing and service location records for the relative
period involved on the rate application. It's only through
examination of those items that you can determine the type
of thing that you're speaking of here when you talk about
your meter. And I'm speaking of non-register meters or
inactive meters upon consumption exists. over-age meters
in the loop that should have been rountined for accuracy
James:
Cato:
Cato:
Freeman:
Part of motion:
Cato:
Cato:
Cato:
Cato:
/9
-15-
check and meter ......... and this type of thing can only
be picked up through examination of those basic customer
account records and we were denied copies of those. We
were given about an hour and a half to look at them - a
selective few - in the Fort Worth office. This is the
first place or their first operating division that I've
ever been denied a copy of these documents. I can show
you from my own files and their files and other ........
information was made available........
Well, I would say this much too. on two other occasions
in 1976 I had 'em to send a supervisor out to make an
adjustment on the spot on the same type of thing where
the meters on two of these were cut off. &ld incidentally
last week they sent a man out to pull this meter out
because they didn't want me to check it again. Thank you.
Thank you, sir. Any other questions. Any other questions
from the audience.
While we're still in the public hearing, if there are no
more questions, I'd like to have a motion in connection
with these last two items we've talked about here concerning
gas purchase contracts to authorize me to, in the event I'm
not provided with the gas purchase contract data requested,
that I'm authorized to seek an audit from either the
Federal Energy Regulatory Commission or the State Railroad
Commission.
The chair will recognize Mr. F r e eman .
I move we authorize the city attorney to request what
information we need from Lone Star, number - 1.
'gas: Contract.
And related information and that in the event I am not
furnished that information I am authorized to request an
audit from the Federal Energy Regulatory Commission and/or
the State Railroad Commission.
We have a motion; we have a second. by Councilman Mills.
Any further discussion. Being none, I'll call for the
question.
All those present voting yes. Motion carries.
Still in the public hearing.
As the last aspect ·of the public hearing...
Let me make sure there are no more questions from the
floor. OK.
,;?d
-16-
Rex:
We've been holding these hearings all over'the county and
we get a lot of the - the main thing we get is they don't
read my meter. That really has nothing to do with our
problem here. We're trying to set a rate which is the
right rate for a fair return for them and a fair rate for
our city. And bear this in mindt at the present timet
North Richland Hills is not before the Railroad Commission.
You are not down there. I'm down there with a bunch of
other cities where they've appealed this same type of
rate. Four or five other cities that I'm down there with
right now and they're objecting to the fact that we didn't
make the right calculations. Now so far we're alright.
We're doing alright down there but I want everybody here
to know - the residents of North Richland Hills - that we
think we can defend our position in this case. We think
we have a good rate case and we can defend our position.
It would be much easier, of course, if Fort Worth would
look into this matter and not just give them every rate
they want every time they come along. We would like to
have them go along with us because it would make it alot
easier for us. But we're willing to go ahead and do it
but every citizen ought to have the opportunity to tell
the council not to do it because there remains the
possibility if we're wrong in some of our calculations,
it may well be they will be retroactive for 90 days or
some period of time when the Railroad Commission hears
it. It means your gas bill, if we're wrong, will go up.
At the present time, it will go down next month. But
at the risk we're willing to take, we think we can defend.
but you should know that; you should be entitled to comment.
Cato:
What are the alternatives?
Rex:
The alternatives at the present time is paying $4.00.
Cato:
Now, are there any further questions from the floor?
Cato:
Being none, we can carryon to Item 6.
Rex.
Cato:
Have you got the ordinance on the agenda.
Yes, I do.
Rex:
I recommend at this particular time that Ordinance No. 697
be passed effective May the 4th, 1978t per plan.
Cato:
You've heard the city attorney's recommendation. What's
your pleasure? Councilman Freeman moves approval of
Ordinance 697 establishing the gas rates for the city
of North Richland Hills. Seconded by Councilman Mills. Any
discussion.
-:1 /
'".. . /
-17-
Cato:
Being none, I'll call forquestionAll those present,
voting yes; motion carries. Are there any further
questions from the floor before I close the hearing?
Hearing is closed; motion passes. Ordinance 697 will
become effective May 4, 1978.
Councilman Kavanaugh?
Well, I just want to tell Mr. Mettler I don't know if
you can do this commercially. I started reading my own
meter; they furnish the service that you read your own
meter - the electric company does - and I'm not sure
but I think the gas company would do the same. And if
you do that, I don't know, if the gas would be the same
as the electric but on an average of three months, my
electric bill went down $20 by me reading my own meter.
So its a suggestion to you.
April 24, 1978
~ ."I~ )
".- "".....-1..
PLANNING & ZONING
PZ 78-8
Planning and Zoning, PZ 78-8, request of
Federated Department Stores to rezone
91.6501 acres from Local Retail to Commercial
Mayor Pro Tern Cato opened the Public Hearing
on PZ 78-8 and called for anyone present
wishing to speak for this case to please
come forward.
Mr. Dave Burket, Federateå Stores, appeared
before the Council. Mr. Burket stated they
felt they would have a broader scope of usès
with commercial zoning. It would allow more
effective competition with Northeast Mall.
Mayor Pro Tem Cato called for anyone present
wishing to speak aganist this case to please
come forward.
There was no one present to speak against
this case.
Mayor Pro Tem Cato closed the Public Hearing.
Councilman Conant moved, seconded by Councilman
Mills, to approve PZ 78-8, Ordinance 700.
Councilman Cavanaugh asked Mr. Burket if
the Sanger Harris Mall would be closed like
the Northeast Mall.
Mr. Burket stated it would be simi~ar to
Northeast Mall.
Councilman Mills asked if the entire tract
was to become commercial. Councilman Mills
stated that under commercial you could have
car lots. Councilman Mills stated there
was an alternate, they could get a Specific
Use Permit.
Mr. Burket stated they felt zoning the tract
commercial was the simplest way.
Councilman Mills asked Mr. Burket who would
control what type stores went in the Mall.
Mr. Burket stated the contract ties all the
businesses together.
Apri 1 24, 1978
,-,-.1
Councilman Mills asked if this meant not
only Federated, but the Mall tenants would
have a say-so in what type of store went in.
Mr. Burket stated that was correct.
Motion to approve carried 5-0.
PLANNING AND ZONING
PZ 78-10 ORDINANCE 701
Mayor Pro Tern Cato advised the Council he
had a request to hear the following cases
together. They are inter-related.
Planning and Zoning PZ-78-10, request of
Foster Village Joint Venture to rezone
18.01 acres from 1F-9 to 1F-8, one family
dwell i ng
Planning and Zoning, PZ 78-11, request of
Foster Village Joint Venture to rezone
4.49 acres from Multiple .Family to IF-8
one family dwelling
Planning and Zoning, PZ 78-12, request of
Foster Village Joint Venture to rezone
4.02 acres from 1F-9 to 2F-9. One Family Dwelll!:!s
Planning and Zoning, PZ 78-13, request of
Foster Village Joint Venture to rezone
3.78 acres from Multiple Family to
2F-9 Two Family Dwelling
Mayor Pro Tern Cato opened the Public Hearing
on PZ 79-10, PZ 78-11, PZ 78-12 and PZ 78-13
and called for anyone present wishing to
speak for these cases to please come forward.
PLANNING & ZONING
PZ 78-11 ORDINANCE 701
PLANNING & ZONING
PZ 78-12 ORDINANCE 703
PLANNING & ZONING
PZ 78-13 ORDINANCE 704
Mr. Jim Harris, Foster Financial. appeared
before the Council. Mr. Harris stated for
the past six years they have seen a need
to revise the subdivision. He was asking
the Council tQ pass these cases together.
Mr. Harris showed the Council· a map showing
the existing zoning. He advised that Rufe
Snow divides the subdivision. This property
was zoned under the old Zoning Ordinance
the property was zoned 1F-9. 9,000 square
feet, instead of 9,500. He felt they would get
much better land use.
Councilman Freeman asked what the size of
the lots would be.
. Mr. Harris replied about 8,400.
Councilman Freeman aske~ what per centage
north of the 1F-8 was occupied.
April 24, 1978
,,2 </
Mr. Harris replied less than 10%.
Mr. Harris stated they would deed restrict
the houses to 1,500.
Mayor Pro Tern Cato called for anyone present
wishing to speak against this case to please
come forward.
There was no one present to speak against
these cases.
Mayor Pro Tern Cato closed the Public Hearing.
Councilman Conant moved, seconded by
Councilman Mills, to approve PZ 78-10,
Ordinance 701, with the stipulation of
1,500 square feet of living area. Motion
carried
Councilman Conant moved, seconded by Councilman
Mills, to approve PZ 78-11, Ordinance 701,
with the stipulation of 1.500 square feet
of living area. Motion carried 5-0.
Councilman Mills moved, seconded by Councilman
Conant, to approve PZ 78-13, Ordinance 703.
Motion against 4-1; Councilman Cavanaugh
voting ,
Councilman Mills moved, seconded by Councilman
Conant, to approve PZ 78-13, Ordinance 704.
Motion carried 4-1; Councilman Cavanaugh
voting against.
PLANNNING & ZONING
ORDINANCE 705
Planning and Zoning, PZ 78-14, request of
Ram Development Corporation to rezone
lot 1, Block 2, Carder Addition from
Commercial to Special Use-Mixed Drinks
Mayor Pro Tern Cato opened the Public Hearing
and called for anyone present wishing to
speak for this case to please come forward.
Dr. Andy Kulaga, partner..Ram Developm~nt.
appeared before the Council. Dr. Kulaga
advised the Council the property in question
is where Furr's is being developed. They
have a paper store and Pier's Imports that
was going to be built, Dr. Kulaga stated
they had lost one restaurant because they
were not zoned for mixed drinks. He was
asking th~ Cöuncil to approve the permit.
April 24, 1978
,..~ -
".~'I:...)
Councilman Cavanaugh asked Dr. Kulaga
if a Chinese Restaurant had been confirmed.
Dr. Kulaga stàted no one would commit them
self unless they could have a permit for
mixed drinks.
Mayor Pro Tern Cato called for anyone present
wishing to speak against this case to please'
come forward.
There was no one present to speak against
this case.
Mayor Pro Tern Cato closed the Public Hearing.
Councilman Freeman moved, seconded by
Councilman Conant, to approv PZ 78-14,
Ordinance 705. Motion carried 4-1; Councilman
Cavanaugh voting against.
PLANNING & ZONING
PS 78-23
Planning and Zoning, PS 78-23, request
of Cambridge Company Development Corporation
for final plat of North Park Plaza
Mayor Pro Tem Cato called for anyone present
wishing to speak for this case to please
come forward.
Mr. Bill Pearson, Cambridge, appeared before
the Council. Mr. Pearson advised the \
Council this was the final phase of North
Park Plaza. They are aware of the City
Engineers letter and are in concurance
wi th it.
Councilman Conant moved, seconded by
Councilwoman Reeder, to approve PS 78-23,
contingent on the Engineers letter. Motion
carried 5-0.
PLANNING & ZONING
PS 78-25
Planning and Zoning, PS 78-25, request of
J. Ardis Bell for final plat of Lot 14,
Block 2, Richland Hills West Addition
Mayor Pro Tern Cato called for anyone present
wishing to speak for this case to please
come forward.
Mr. David Hughes, Elliott and Hughes Engineers,
appeared before the Council. Mr. Hughes
. advised the Council he was representing
April 24. 1978
~t.-:>
Northeast Medical Clinic. Thi.s property
has about 2 acres and is located at
the corner of Glenview Drive and Cagle.
They are building onto the present clinic.
They are aware of the Engineers letter and
are in concurance with the Engineer and
the City Staff.
Councilman Mills asked if there was a
problem on the land behind the clinic.
Mr. Hughes stated there was about 200 feet
between the clinic and the Sanger Harris
property. They were working with Sanger.
Harris on egress and ingress.
Councilman Mills asked Mr. Perkins if he
was satified.
Mr. Perkins replied everything was ok.
Councilman Freeman asked if th~s would
interfere with the agreement with Richland
Hills on the widening of Glenview.
City Manager Riddle answered it would not.
Councilman Mills moved, seconded by Councilman
Conant, to approve PS 78-25, subject to
the Engineers letter. Motion carried 5-0.
PLANNING & ZONING
PS 78-29
Planning and Zoning, PS 78-29, request of
Charles Rutledge for replat of Lot 14,
Block 2, Richland Hills West Addition
Mayor Pro Tern Cato called for anyone present
wishing to speak for this case to please
come forward.
Mr. Charles Rutledge appeared before the
Council. Mr. Rutledge advised the Council
he had bought this house in Smithfield and
wanted to move it on this lot. The house
was 8,000 square feet, he was going to
build on and make it 1,100. He was also
going to brick it.
Councilman Cavanaugh asked if Mr. Rutledge
had any pictures of the house.
Mr. Rutledge replied he did not.
. Councilman Freeman moved, seconded by
Councilman Cavanaugh, to approve PS 78-29,
subject to the Engineers letter. Motion
carried 4-1; Councilwoman Reeder against.
April 24, 1978
...., ·-7
:'.~ /'
PAYMENT
Approval of payment to Hall Construction
Company in the amount of $23,096.66
Councilman Mills moved, seconded by Councilman
Conant, to approve payment to Hall Construction
Company in the amount of $23,096.66.
Councilman Conant asked if there was enough
left on the contract for a pênalty if
necessary.
City Engineer Perkins stated there was.
Councilman Mills asked how much longer the
job was going to take.
City Engineer Perkins stated he would have
to check with the Contractor.
AMBULANCE ORDINANCE 698
ITEM 6
Motion to approve carried 5-0.
Approval of Ordinance for emergency ambulance
service
Mayor Pro Tern Cato this was item #6 and
would now be item 20a.
Mayor Pro Tern Cato read the following caption
of Ordinancè 698.
An Ordinance of the City Council of the City of
North Richland Hills, Texas, establishing
emergency ambulance service in North Richland
Hills, Texas, establishing rates for the
use of such service; defining false statements
of emergency; ordaining other matters relating
to the subject; providing a penalty; providing
for publication; and prescribing an effective
date.
Councilman Mills moved, seconded by Councilman
Cavanaugh. to approve ordinance 698.
Councilman Freeman stated the Council had been
thru this item several times, he stated he
felt the City could not afford to go in to
the ambulance service. Councilman Freeman
advised the Council the County may come up
with an ambulance service.
Councilman Conant advised the Council he had
-attended a meeting at Tarrant County and
if the County came up with an ambulance
service, it would have to be subsidized.
Apri 1 24, 1978 .;::1 :/
Councilwoman Reeder stated she felt the
city could not afford to not go in the
ambulance service.
Mr. James Midget appeared before the
Council. Mr. Midget stated he did not
this item was on the agenda until he arrived
at the meeting. Mr. Midget stated he was
a heart patient and wanted to know if the
people would have an opportunity to ask
questions. He asked the Council why they
wanted to change the ambulance service.
Councilman Mills stated the response time
was one reason. The response time is
30 to 40 minutes.
Mrs. Jo Ann Williams appeared before the
Council. Mrs. Williams stated that maybe
the people were not aware of the complaints
the city had received on the present
ambulance service.
Mr. Don Gonzles, Vice President Turner
Ambulance Company, appeared before the
Council .
Mr. Gonzles stated that Turner's response
time was no more than 8 minutes.
Councilman Mills stated the Council had
received letters from the citizens. Police
Department and Fire Department complaining
on the response time and the way some calls
were handled.
Mr. Gozles stated the city could subsidze
Turner. When they make a 'call they never
know if they will get paid or not. If the
company was subsdized~ they could upgrad their
service.
Mayor Pro Tern Cato stated he objected to
the subsidy That would be using the
tax payers money.
Councilman Freeman asked Mr. Gonzles to
respond to a letter the Council had received
concerning a citizen calling Turner for
service and Turner leaving without taking
, the citizen. The citizen died.
Mr. Gonzles asked Ms. Vickie Thomas,
dispatcher for Turner, to come before the
Council. Ms. Thomas stated she dispatched
April 24, 1978 :.:"7
this Gall and Turner was asked to leave
the house.
Councilman Freeman asked Ms. Thomas
why Turner was ordered out of the house.
Ms. Thomas stated she did not know the
reason they were ordered out.
Councilman Cavanaugh asked if this was
normal for Turner to leave without taking
the person to the hospital.
Ms. Thomas replied it was not.
Councilman Freeman asked the City Manager
if this case had been followed up on.
City Manager Riddle stated they listened
to tapes in the Police Department. City
Manager Riddle advised the Council this
case should not be discussed because of
a pending law suite.
Councilman Freeman asked Mr. Gonzles
about an accident that happened on Loop 820
and the Firemen advised the person that
was hurt not to move and Turner made the
man get up and walk to the stretcher.
Mr. Gonzles stated he was not familiar
with the case.
Councilman Cavanaugh asked Mr. Gonzles
if he was aware, before tonight, that the
city was anticipating going into the
ambulance service.
Mr. Gonzles replied he did not. Mr. Gonzles
stated he did not know why the city wanted
to go into a service they already had. He
stated he could not understand why the Council
did not subsidize. Mr. Gonzles stated the
city would also get complaints, you could
not please everyone.
Mr. Charles Turner,
before the Council.
Council he answered
Turner was asked to
President, Turner. appeared
Mr. Turner advised the
the call in question where
leave the house.
Councilman Cavanaugh asked Mr. Turner about
·taking 4 to 5 kids in one ambulance to the
hospital the day the utility department
broke a gas line by the school. Turner
charged each child $40.00 each.
April 24, 1978
JCJ
Mr. Turner replied they had been requested
by the Fire Marshall to take the children
and $40.00 each was the normal fee.
Mr. Turner stated they made all kinds of
calls and did not get paid for them. The
collection rate on accident calls is 12%
to 15%.
Councilman Mills asked Mr. Turner to tell
the Council something about his service.
Mr. Turner stated they had 4 units and 16
part time employees. They had five
people all the time.
Councilman Mills asked how many cities he
served.
Mr. Turner replied four.
Councilman Freeman asked Mr. Turner approximately
how many calls he made in North Richland Hills.
Mr. Turner replied about 38. 18 were dispatched
by the North Richland Hills Police Department.
Councilman Freeman asked Mr. Turner if
~8 calls were average.
Mr. Turner replied they,madR transfers
also.
Councilman Freeman asked Mr. Turner how
many of the calls were' emergency.
Mr. Turner replied about 16.
Councilwoman Reeder asked Mr. Tur.ner what
he did when he was unable to collect.
Mr. Turner replied he turned it over to
a collection agency.
Councilwoman Reeder asked Mr. Turner if he
charged a late charge.
Mr. Turner replied after 10 days a $5.00
late charge was applied to the bill.
Councilman Cavanaugh asked Mr. Turner what
he would recommend the city do.
Mr. Turner stated the city could subsidze
the company and the service could be upgraded.
Councilman Cavanaugh asked Mr. Turner if
Apri 1 24, 1978 .sl
he had a permit to operate in the City.
Mr. Turner rep1ied he did have a permit
and it expired. He was told he would not
need a permit since the abmulance was not
based in North Richland Hills.
Councilman Freeman stated felt the city and
the ambulance company should work together
and come up with a answer to the problem.
Mr. Turner stated he felt the city's fire
department should i niti ate" ðêrescueutli t.
Most of the work would be done by the rescue
unit before the ambulance got to the scene.
Mrs. Byrd Dude Court, appeared before the
Council. Mrs. Byrd stated there was some
question as to whether Turner should make
a profit or not. Most of the Funeral Homes
used to run ambulance service and the
collecitonrate was so poor th~y had to get
out of tne business. Mrs.Byrd asked if the
money had been budgeted for the ambulance
service run by the city. Mrs.Byrd stated
she felt there was a conflict of personalities,
you could not please everyone. Mrs. Byrd
stated she ~hought the Council should
maybe temporary subs i di ze Turner and do more
study on 'theambul ance servi ce before the
city took over.
Councilman Mills asked about the boundaries
the city ambulance service would cover.
City Manager Riddle stated the victims would
be taken to the nearest mid-cities hospital.
Councilwoman Reeder asked if a burn victim
would be taken to Dallas.
Fire Chief Gertz stated they would be taken
to the nearest hospital and then tran~ferred.
Councilman Mills stated he would like to
amend his motion to state the City Manager
to.study the future of the service and
surrounding élties systems.
Mayor Pro Tem Cato advised Councilman Mills
he could direct the City Staff, it did not
have to be part of the motion.
'Motion to approve Ordinance 698 carried 4-1;
Councilman Freeman voting aganist.
Apri 1 24. 1978 é].2-
AMBULANCE RATE
Approval of rates for City Ambulance Service
City Manager Riddle stated he recommended a
$40.00 fee for the first person, $10.00 each
âddi.tional person carried.
Councilman Mills asked if any lines had been
set up for collection.
City Manager Riddle stated the Council would'
need to set the policy on collection.
Councilman Cavanaugh stated he did not
foresee charging the citizens a fee.
Mayor Pro Tern Cato stated most people had
insurance to cover ambulance calls.
Councilman Cavanaugh moved, seconded by
Councilwoman Reeder, to send a letter asking
the people to file ori'their-~niur~nce~
after 30 days, .if not paid, a~k fora
$25.00 donation.
After discussion, Councilman Cavanaugh amended
his motion to state, If they do not live
in the city charge a fee of $40.00, if not
paid in 30 days turn it over to a collection
agency. A resident of the City be charged
$40.00 fee for insurance; then the letter
askin9 for a donation. After 30 days
discontinue billing.
Councilman Mills moved to amend Councilman
Cavanaughs motion to state the citizens of
North Richland Hills be billed $40.00 and
not mention insurance. If the people want
to file on insurance let them go ahead. The
city should not bill contigent on insurance.
Motion dies for the lack of a second.
Mayor Pro Tern Cato advised the Council they
would go back to the original motion and
called for any discussion. .
Councilman Freeman stated that if some
revenue was not coming in, taxes would
have to be increased somewhere down the line.
Councilwoman Reeder stated she would like
to amend the motion to state no charge
. for Senior Citizens.
April 24. 1978 ,3'/./
Mayor Pro Tern Cato stated he felt this
had been covered in the original motion.
Mayor Pro Tern Cato called for a vote on
the original motion. Councilmen Mills,
Conant, and Freeman against; Councilwoman
Reeder and Councilman Cavanaugh for;
motion fails.
NEH PERSONNEL
Councilman Conant moved, seconded by Councilman
Freeman, to set the fee at $40.00 for the
first person and $10.00 each additional person
taken in the same ambulance. Motion carried
4-1; Councilman Cavanaugh voting against.
Approval to hire three (3) personstemponn:tly
to operate ambulance service
Councilman Cavanaugh moved, seconded by
Councilman Mills, to approve hiring three
new firefighters.
Councilman Freeman asked where the money
was coming from to pay the salary.
City Manager Riddle advised it would come
from surplus. The present budget was over
and above to cover service until next
years budget.
Councilman Cavanaugh amended his motion.
seconded by Councilman Mills, to state
the salary would come out of surplus from
the present budget. Motion carried 4-1;
Councilman Freeman voting aganist.
AMBULANCE LEASE
Approval to lease a modular ambulance
from Superior Southwest Company
Councilman Mills moved seconded by Councilman
Oavanaugh, to approve leasing an ambulance
from Superior Southwest until September, 1978,
funds coming from current budget year surplus.
Motion carried 4-1; Councilman Freeman
voting aganist.
RESOLUTI ON 78-6
Approval of Resolution to Missouri/Pacific
Railroad requesting to bore under the
railroad at Watauga Road and Denton Highway
Councilman Conant moved, seconded by Councilman
. Mills, to approve Resolution 78-6. Motion
carried 5-0.
April 24, 1978
J> .?
..j....
PARK SHE
Approval to mftke offer for a 45 acre
pa rk . s He
Councilman Freeman moved, seconded by Councilman
Mills, to approve making an offer for a 45
acre park site, funds to come from surplus.
Motion carried 5-0.
ANNOUNCEMENT
Mayor Pro Tern Cato advised the Council the
Planning and Zoning Commission had requesteø
a work session with the Council. The meeting
would be held Monday, May 1, 1978, at 7:30 p.m.
ADJOURNMENT
Mayor Pro Tern Cato adjourned meeting of
Apri 1 24, 1978.
,~
Cato
ATTEST:
~~:z0 )7J~
ðnette Moore City Secretary
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