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Home My WebLink AboutMinutes - City Council - Special - 2/2/197983A FEB 2 19 In% r r *NOTICE OF HEARING SPECIAL CALLED MEETING OF THE CITY COUNCIL ON PAGE 83C. CITY OF LUBBOCK, TEXAS February 2, 1979 In accordance with the Notice of a Special Called Meeting of the Council posted February 1, 1979 at 3:00 p.m. for the purpose of considering proposed rate increase within the cities and towns composing the West Texas Distribution System, said increase being filed by Pioneer Natural Gas Co., the above referenced meeting was held. Mayor Pro Tem Henry presiding. Those present: For the City: Mayor Pro Tem Henry, Councilwoman Carolyn Jordan, Councilman Bill McAlister, Councilman M. J. Aderton, City Attorney John C. Ross, Jr., City Manager Larry Cunningham, Dr. Bill R. McMorries, Consulting Engineer, and City Secretary -Treasurer Evelyn Gaffga. For PNG: Mr. Tommy Stevens, Attorney Mr. L. D. LaGrone, Vice President for PNG Mr. J. V. Huber, Assistant Vice President, Rates and Economics, PNG The meeting was called to order by Mayor Pro Tem Henry, who indicated that he would entertain a motion to re -open the hearing for further discussion for purposes of clarifying certain issues. Motion was made by Councilwoman Jordan, seconded by Councilman Aderton to re -open the hearing for purposes of clarifying points of fact. Motion carried: Mayor Pro Tem Henry, Councilwoman Jordan, Councilmen Aderton and McAlister voting Yea; None voting Nay; Mayor West abstaining. With respect to Item #2 as posted in the referenced Notice, to -wit: "An Ordinance Modifying the Obligation of Pioneer Natural Gas Company to extend Main Lines to serve new consumers who use natural gas within the City Limits of , Texas," the City Attorney advised the Council this item was inappropriate to consider, as this item is part of an existing franchise, and Council cannot take action on this matter without violating the provisions of the City Charter regarding amending existing franchises without first advertising for three consecutive weeks the proposed amendment to the existing franchise; therefore, it is inappropriate to consider this item at this time. Councilwoman Jordan referred to the previous hearing at which time she expressed the importance of knowing what financial impact there would be on the consumers with respect to this proposed ordinance, and requested this data be available before the current session was held. Dr. McMorries acknowledged that there would be an impact on developers and an impact on consumers -- some $255.00 per customer; that with the 150 ft of proposed main line extension as indicated by PNG, this would reflect about $2.00 per foot - or an additional sum of $400.00 to $450.00. Mr. Ross, the City Attorney, indicated that the Charter forbids amending or changing portions of an existing franchise until after the matter has been advertised three consecutive weeks prior to consideration, the cost of such advertising to be borne by PNG; that the PNG attorney would receive a copy of the franchise, as amended, and the matter would then be presented to the Council for consideration at the appropriate time after publication. With respect to Item #3 - proposed ordinance establishing fees for connecting and reconnecting customer meters -- Dr. McMorries indicated that PNG does not keep records on specific cities; that such data for the City of Lubbock is not available. A detailed discussion ensued as to arriving at such data for the City of Lubbock, as separated from the entire West Texas Distribution System, with the result that such information is not available from PNG records, and Dr. McMorries indicated that they did not do a town by town customer count for this study. With respect to Item #4, as it appeared on the agenda, additional discussion ensued as to the proposed rate base determined by PNG, the amount of small industrial customers incorporated into the proposed rate base, and related matters. PNG Exhibit III was then submitted into evidence, said exhibit being an excerpt from PNG's Exhibit I for the West Texas Distribution System, whcch reflects Lubbock's cost of service. It was brought out that the cost of service includes residential, commercial, small industrials and air conditioning facets. Councilwoman Jordan requested this allocation be checked; that the Council go with the rate schedules as proposed by the Consultants; that this allocation is substantially different as a result of additional study, that the case be reopened for consideration before second reading. i Councilman Aderton felt the rates proposed were very fair; that there had been an attitude of give- and-take in the previous sessions; that the Council should go with the uniform concept and pass said ordinance on first reading. I! Mayor Pro Tem Henry expressed some concern about establishing an on -going accounting method to reassure the citizenry that the rates remain in line from time to time. There being nor further discussion, the hearing was closed. 83B B 2 197E 79-38-83B-128 Ordinance #7804 AN ORDINANCE DEFINING AND PRESCRIBING THE RATES APPLICABLE TO THE SALE OF NATURAL GAS AND NATURAL GAS SERVICE BY PIONEER NATURAL GAS COMFANY TO CERTAIN OF ITS CUSTOMERS WHO USE NATURAL GAS WITHIN THE CITY LIMITS OF LUBBOCK, TEXAS: PROVIDING FOR MONTHLY ADJUSTMENTS, TO THE NEAREST D1c, IN SUCH RATES, IN ACCORDANCE WITH INCREASES OR DECREASES IN THE AVERAGE MONTHLY COST TO PIONEER OF GAS PURCHASED FOR ITS WEST TEXAS TRANSMISSION SYSTEM: PLACING CERTAIN LIMITS ON THE MAXIMUM AMOUNT OF SAID MONTHLY ADJUSTMENTS: DEFINING COST OF GAS: ESTABLISHING AN EFFECTIVE DATE: AND CONTAINING A SAVINGS AND SEVERABILITY CLAUSE. The motion was made by Councilman Aderton, seconded by Councilman McAlister to pass said ordinance on first reading. Councilwoman Jordan requested a substitute motion: That the Council accept the recommendation of the Consultants to put the rate structure as recommended; that we specifically deny any gas for a total of 100% pass through; that we ask for an on -going study to see if this study as _ presented is really accurate; that if not, the City initiate a new rate case. The substitute motion died for lack of a second. Before considering the original motion of Councilman Aderton, Mayor Pro Tem Henry indicated that the concern from the citizens as expressed to him reflected a need of some on -going monitoring as to whether or not the gas rate were remaining in line, and he felt there should be some method implemented investigating the rates after the proposed ordinance goes into effect. Councilman McAlister amended the original motion to reflect that prior to second reading, the staff provide information as to an on -going accounting method whereby the City of Lubbock is assured that gas rates remain in line, thus in turn assuring the citizens of the City of Lubbock that this is not a "one-time rate setting" situation. Councilman Aderton indicated his acceptance of the motion, as amended by Councilman McAlister. Motion carried: Mayor Pro Tem Henry, Councilman Aderton, Councilman McAlister voting Yea; Councilwoman Jordan voting Nay; Mayor West abstaining. 79-38-83B-129 Ordinance No. 7805 AN ORDINANCE ESTABLISHING FEES TO BE CHARGED BY PIONEER NATURAL GAS COMPANY FOR SETTING, TURNING ON AND RECONNECTING CUSTOMER METERS WITHIN THE CITY LIMITS OF LUBBOCK, TEXAS. Motion was made by Councilman Aderton, seconded by Councilman McAlister to pass said ordinance on first reading. Motion carried: Mayor Pro Tem Henry, Councilmen Aderton and McAlister voting Yea; Councilwoman Jordan voting Nay; Mayor West abstaining. The meeting adjourned at 11:25 a.m. Mayor Pro Te an Hen ATTEST: 4c,�t� EVELYN GA GA City Secretary -Treasurer 83C F E g 2 1979 79-38-83B-128 Ordinance No. 7804 79-38--83B-129 Ordinance No. 7805 r NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on February 2, 1979 at 10:00 A.M. in the City Council Chambers on the Second Floor of the City Hall, Lubbock, Texas, there will be held by the Lubbock City Council a public hearing to allow appearances by any interested or affected parties, to consider three proposed ordinances which form a part of City Exhibit II, as presented to the Council on January 19, 1979, by the Consultants for the West Texas Distribution System, entitled to -wit: r 11 r_ I City Exhibit II -A AN ORDINANCE MODIFYING THE OBLIGATION OF PIONEER NATURAL GAS COMPANY TO EXTEND MAIN LINES TO SERVE NEW CONSUMERS WHO USE NATURAL GAS WITHIN THE CITY LIMITS OF , TEXAS; City Exhibit II-B AN ORDINANCE ESTABLISHING FEES TO BE CHARGED BY PIONEER NATURAL GAS COMPANY FOR SETTING, TURNING ON AND RECONNECTING CUSTOMER METERS WITHIN THE CITY LIMITS OF , TEXAS: City Exhibit II-C AN ORDINANCE DEFINING AND PRESCRIBING THE RATES APPLICABLE TO THE SALE OF NATURAL GAS AND 1ATURAL GAS SERVICE BY PIONEER NATURAL GAS COMPANY TO CERTAIN OF ITS CUSTOMERS WHO USE NATURAL GAS WITHIN THE CITY LIMITS OF , TEXAS; PROVIDING FOR MONTHLY ADJUSTMENTS, TO THE NEAREST .01,,, IN SUCH RATES, IN ACCORDANCE WITH INCREASES OR DECREASES IN THE AVERAGE MONTHLY COST TO PIONEER OF (AS PURCHASED FOR ITS WEST TEXAS TRANSMISSION SYSTEM; PLACING CERTAIN LIMITS ON THE MAXIMUM AMOUNT OF SAID MONTHLY ADJUSTMENTS; DEFINING COST OF GAS; ESTABLISHING AN EFFECTIVE DATE; AND CONTAINING A SAVINGS AND SEVERABILITY CLAUSE. I, EVELYN GAFFGA, hereby certify that this Notice was posted on this 19th day of January, 1979 at 5:00 P.M. (Seal) (�' , , "i Z"' / E LYN GAF14A City Secretary -Treasurer 1 L,I