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Home My WebLink AboutCC 1977-02-21 Minutes CALL TO ORDER ROLL CALL RESOLUTION NO. 77-4 CONSIDERATION OF ORDINANCE 646-LONE STAR GAS RATE INCREASE #4 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, HELD AT THE CITY HALL, 7301 NORTHEAST LOOP 820, FEBRUARY 21,1977 - 7:30 P.M. Mayor Newman called the meeting to order February 21, 1977, at 7:30 p.m. PRESENT: Mayor Councilmen Tom E. Newman Denver Mills Walter Smith John Lamond, III J. F. Cato George Conant, Jr. Dorothy McClure Councilwoman STAFF PRESENT: City Manager M. E. Riddle City Attorney Rex McEntire Director of Finance Ruth Pinner ABSENT: City Secretary, Jeanette Moore due to an accident involving one of her children. Motion was made by John Lamond, seconded by Walter Smith, to pass Resolution 77-4 canvassing the election and declaring Dave Freeman to be seated as Councilman Place 7. Motion carried 6-0. City Attorney Rex McEntire administered the Oath of Office to Dave Freeman. Mayor Newman congratulated Councilman Freeman and recognized his family in the audience. Councilman Freeman took his place as Councilman Place 7. Mayor Newman read his letter to Mr. Charles Mettler of Lone Star Gas Company. Mayor Newman recommended that North Rich1and Hills residents pay the same rate as is being paid by other metrop1ex cities that have not approved a rate increase. Mr. Charles Mettler, Consumer Products Manager, Lone Star Gas Co. and Mr. Ken Burdick were present to show charts and answer questions in regards to the request to the Railroad Commission in January 1975, aSking for: 1. Allowable 9% rate of return 2. Gate Rate of $1.20 MCF 3. 100% monthly gas cost adjustment. MINUTES OF THE SPECIAL COUNCIL MEETING FEBRUARY 21,1977. Page 2 The Railroad Commission found that they would allow: 1. 8% rate of return 2. Gate rate of $1.0399 MCF 3. 85% monthly gas cost adjustment Councilman Mills ask if there was a gate rate price at gas wells. Mr. Mettler answered "no". Mr. Mettler reviewed the rate increases granted in North Rich1and Hills. A rate increase was granted in October 1972, and was in effect until November 8, 1976. In July 1975, the Gas Company requested a rate increase but it was denied in September 1975. The residents of North Rich1and Hills saved $174,900.00 in gas bills due to this denial. Mr. Mettler showed a chart by months listing the gas cost adjustment. The old rate, prior to the last rate increase, was $1.778 plus $1.02 GSA equalling $2.805 per MCF. The new rate shows $2.5968 plus .22 GSA equalling $2.8818 per MCF. He also showed that an average bill for the average consumer was 8MCF per month. The new rates would cost $19.08 whereas the old rate cost $16.88. Councilman Cato ask Mr. Mettler if the Gas Company had approached neighboring cities with rate increases in August 1975 and received the rate increase. Mr. Mettler said this was true. Mr. Mettler showed a chart of the neighboring cities rates for 8 MCF per month as follows: Hurst $17.76 Haltom City 14.73 Rich1and Hills 17.81 Watauga 18.62 N.R.H. 19.08 Mr. Mettler gave charts to the Council listing the days of the months that had temperatures below 65 degrees. This was referred to as the Degree Deficiency Data. The Degree Deficiency Data for the past three months, November, December, and January, showed a 72% increase in DDD days. Mr. Mettler stated there were 234 towns in the Fort Worth Division; of these 173 have been filed on for rate increases, 92 approved, 9 denied, and 72 are pending. MINUTES OF THE SPECIAL COUNCIL MEETING, FEBRUARY 21, 1977. Page 3 The following towns have passed rate increases higher than North Rich1and Hills: Blue Mound Has1et Saginaw Grapevine South Lake Keller Watauga Josuha Arlington is at the Railroad Commission now pending a decision. Councilman Cato ask about Haltom City and Rich1and Hi 11 s . Mr. Mettler stated he did not know as they were in negotiation now. Councilwoman McClure ask if eventually all cities would be on the same rate. Mr. Mettler stated they planned to have all cities on the same rate as soon as possible. Councilman Mills stated he was not sure of the profit deficiency in Hurst, yet Hurst rates were $2.00 lower than ours. It appears that if Hurst does not have deficiency, you are making excessive profit on North Rich1and Hills. Mr. Mettler replied that rates are established by individual towns. Hurst is on a different town plan so rates are not necessarily the same. The profit figures for 1976 will be out in April 1977. at that time the decision on each individual town rate will be made. Councilman Lamond ask if we were the first to be hit by this type increase because we were the last to come into line on the last increase. Mr. Mettler stated this was true. Mayor Newman recognized former Councilman Jim Wood in the Audience. Councilman Smith was concerned with the fact that some of our citizens had called Lone Star Gas Co. and were spoken to harshly and he would want that corrected. Mr. Mettler requested anyone interested to come by the office and monitor the telephone calls. Mayor Newman then ask for questions from the audience. MINUTES OF THE SPECIAL COUNCIL MEETING, FEBRUARY 21, 1977. Page 4 Joe Kent, Citizen of North Rich1and Hills stated that Lone Star Gas Co. had a reserve for 12 years underground, are you charging the going price as of right now for the gas that has been there . for fi ve or si x years. Mr. Mettler stated that the Gas Company must buy as much as they sell. Reserves have been depleted terrifically low. I don It know how to answer that question. Bill Netter1y, Citizen of North Rich1and Hills ask if Lone Star Gas Co. could buy gas from outside the state. Mr. Mettler stated that Lone Star is now buying in Oklahoma to serve the Wichita Falls area but feels that when the contract expires they won't be buying any more. JoAnn Williams, Citizen of North Richland Hills ask if the rate increase had not been passed would the Railroad Commission have granted it and charged us a retro-active fee. Mayor Newman stated that we don't know what the Railroad Commission would do. Mr. Mettler stated that there was a sur-charge in Fort Worth but had been waived in North Rich1and Hills. Janice Freeman, Citizen of North Rich1and Hills stated that Blue Mound had a higher rate. What is their rate now? Mr. Mettler stated it was $3.00 for the first MCF and $2.11 per MCF after the first. J. W. Hope, Citizen of North Rich1and Hills ask why the gross and net bills were changed at the same time. Mr. Mettler stated it was a recommendation from the Consulting Engineers. Mayor Newman ask if we were advised the discount was being discontinued. Mr. Mettler stated it was contained in the suggested Ordinance presented by Lone Star Gas. He also stated the net and gross discount was unfair to people on retirement incomes when billing was done throughout the month and checks to citizens only come once a month. Robert Sherman, Citizen of North Rich1and Hills ask if there was a restriction on how much gas cost MINUTES OF THE SPECIAL COUNCIL MEETING, FEBRUARY 21, 1977. Page 5 adjustment can be passed onto the customer. Mr. Mettler stated that where gas rates are low the gas cost adjustment is higher, and where rates are higher the gas cost adjustment is lower. John Nower, Citizen of North Rich1and Hills ask what investment Lone Star Gas Co. had in North Rich1and Hills. He stated that he paid for the line to the street at his home. Mr. Mettler said the costs are maintaining the lines, and repairing leaks. Mrs. S. V. Jordan, Citizen of North Rich1and Hills said her November bill gross was $23.88, December bill gross was $38.76, and January bill was $77.35. She called the gas company and spoke to Mr. Crawford who said she possibly needed a re-read and that would be done in about 10 days. He advised her not to pay until the re-read was accomplished. On the 16th the re-read varified her high bill. She ask what she was to do with this high bill. Mayor Newman advised her she had no choice but to pay the bill. Mayor Newman ask the Council if they had any wishes to make a motion concerning this matter. The Council did not. CONSIDERATION OF RICHLAND ENTERPRISES, INC., FINAL PLAT ADJOURNMENT Mayor Newman called for anyone present concerning this matter. There was no one present so the item was tabled for this meeting. Mayor Newman adjourned the Special Meeting of the City Council, City of North Rich1and Hills, Texas. February 21,1977. if~¿~ Tom E. Newman, ayor ATTEST: