01141985 Special Meeting (2) - Laserfiche WebLink

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42 MI~UTES OF THE SPECIAL MEETIKG OF THE CITY COUNCIL OF TIIE CITY OF SAN ~1ARCOS, TEXAS, JA~UARY 14, 1985 PRESE~T: Mayor Emmie Craddock Council Members Karl W. BTown Bill Coddington *Gerald G. Farr Fred Guerra Betty Jane KissleT *Jaime ~100re City Manager A. C. Gonzalez City Secretary Janis K. Womack City Attorney Lamar Hankins Dir. Environment Steve Jenkins Also present: Don Butler, Jim Jansen, Bob Tintsman, Jess Logan, Ða1e Tucker, Larry Smith, Steve Bartley, Austin Curley. Bob Higgs and others. Mayor Craddock called the meeting to order at 7:00 p.m. Mayor Craddock opened a public hearing to receive comments from the public regarding the proposed rate increase öf LCRA. Mr. Don Butler began by stating there were two step increases requested by LCRA. The first step - 39 million approximately and the second step - 33 million, designed to cover increase of finance costs which would go into effect July, 1986. He said they had a problem with having a two step basis. They felt the second step of increase would be more appronrÌatelv supported bv other factors In th~ case such as Increase, inve~tments and' expenses. H~ further stated that they had filed a motion to dismiss the second step of increase. He said it was partially successful and unsuccessful. The Commission said they would not use the second step in this case, but would try and use it at a later date. He believes it IS an unsatisfactory so- lution because it forces one to try rate cases without appropriate data. one might need to have for such a case. He further went on to say they had appealed to the full Commission and have not heard any results. IIe has been heartened by the fact that even though LCRA ODPoses the appeal to the Commission, they do agree that it would be better to go ahead and try the second step in this case at one time in the future rather than ending up with proceedings as we have now. Mr. Coddington asked about why the different increase percentages appeared in a letter to the i\1ayor and ,in a recent press release. Hr. Butler re- sponded by saying there were aifferent ways to calculate rate increases. He said what LCRA has done ]s that increases for all classes including wholesale above the present level of rate including fuel would be about 14.5%. What this case IS about is not fuel because they do not propose to change the fuel factor (at present) - they intend to increase rates to cover non-fuel costs. For the retail class of customers. the rate increase would be approximately 71.9% for the first step, whereas the wholesale class of customers increase would he 49%. At this point, Bob Tintsman of LCRA introduced other members of LCRA staff. Mr. Jess Logan began discussing reasons for filing. lIe said the primary reason was to have a phased implementation of cost increases to the cus- tomer. fIe noted that with studies being done, if they were to defer the rates and not increase rates in phased increments over a period of time, they would get to a point of where the rate increase would be in excess of what they are now. * Jaime Moore was present at 7:07 n.ID. * Gerald Farr was present at 7:35 p.m.