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Home My WebLink About10 0608 minThe Plainview City Council met on June 8, 2010 at 7:00 p.m. in the City Council Chambers of the Plainview City Hall at 901 Broadway. The agenda for this meeting was posted in City Hall at 5:10 p.m. on June 4, 2010. Mayor John C. Anderson presided. Councilmembers present were: Charles N. Starnes - District 1, David G. Garcia - District 3, Virginio "V.O." Ortega- District 4, Wendell Dunlap- District 6, and Roland Nash - District 7. Councilmembers Cathy Waggoner- District 3 and Ron Trusler- District 5 were absent. Staff members present were: Greg Ingham -City Manager, Will Mull - Police Chief, Dale Simpson- Director of Civil Service, Rusty Powers -Fire Chief, Eric Turner -Main Street /CVB Coordinator and Belinda Hinojosa -City Secretary. News Media Representative: Hayley Anderson and Stephanie Williams - Plainview Daily Herald Councilmember Starnes delivered the invocation and led in the Pledge of Allegiance. Councilmember Dunlap moved to adopt the consent calendar. The motion was duly seconded by Councilmember Ortega and carried by unanimous vote. Items approved on the consent calendar included the approval of the minutes of May 25, 2010 and the granting of excused absences to Councilmembers Waggoner and Trusler. Greg Ingham, City Manager presented for consideration and to take necessary action Resolution R10 -222, a Resolution by the City of Plainview, Texas ( "City ") suspending the effective date for ninety days in connection with the rate increase filing of Southwestern Public Service Company on May 17, 2010; finding that the meeting complies with the Open Meetings Act; making other findings and provisions related to the subject; and declaring an effective date. On about May 17, 2010, Southwestern Public Service Company (SPS), a wholly -owned subsidiary of Xcel Energy, Inc., filed an application to increase its base rates by approximately $62 million in annual revenue. SPS' application proposes an effective date of June 21, 2010 for its proposed increase in rates. Some of the key elements of SPS' rate application are as follows: 1. An increase in base rates of $62 million; 2. A return of 11.35% on its common equity; 3. Recovery of Municipal Franchise Fees in a surcharge limited to ratepayers within the city limits instead of from all customers; 4. If approved, SPS' base -rate increase would result in a monthly increase of about $9.31 in the Summer, and an increase of $11.71 in the Winter, for a residential customer using 1000 kWh per month (which equates to about a 16% increase in the Summer and 24% increase in the Winter, over current base rates); 5. An increase in the residential customer charge (Service Availability Charge) from $5.60 to $7.00 per month; 6. SPS seeks to recover all of its municipal franchise fees in a separate, direct charge to consumers in the applicable municipality imposing the franchise fee, rather than through base rates. He also advised that our consultants (and Xcel in their filing information) show base rate City Council Minutes June 8, 2010 Page 1 of 4 403 404 increases that could range from 16% to 24 %. But, when you read about the increase in the newspaper or see it on the news, it indicates that the change in rates is in the range of 7 %. The difference is that in the 16% to 24% numbers you are looking only at what the cities actually regulate in what is considered the base - rates. The 7% increase that Xcel /SPS has released is also an accurate number, but it includes fuel costs which are handled separately from the base -rates because fuel costs are considered a pass - through and will move up or down depending on the price of energy. And since much of the power generated by Xcel /SPS is generated with gas fired facilities, the cost of fuel has gone down in the last year or so — which has the effect of reducing the actual out of pocket increase. The City must take action no later than June 21, 2010. If the City does not take action by June 21, 2010, SPS' application as filed will be deemed approved by operation of law. While each city could evaluate the Xcel /SPS rate case individually, the cities in the Xcel /SPS service area have found it more effective to work together on rate matters so the cities served by Xcel /SPS have created a Steering Committee to retain necessary legal and expert advisors and make recommendations to all of the cities involved. The cities are known as the Alliance of Xcel Municipalities (AXM). Reasonable rate case expenses incurred by AXM are subject to reimbursement by the Company. To represent the AXM cities in matters regarding SPS' rate application, the Steering Committee for the AXM cities recommends retaining the firm of Herrera & Boyle, PLC. This is the firm the AXM cities have retained for representation in prior rate matters involving SPS. He stated it is his recommendation that the Council approve the Resolution and suspend the rates for 90 days. Mayor Anderson asked for public comment. There was no public comment. Councilmember Starnes moved to accept Resolution R10 -222. The motion was duly seconded by Councilmember Nash and carried by unanimous vote. Arthur Wall, Street Superintendent presented for consideration to award bids for seal coat gravel. Two bids were received as follows: (1) R. E. Janes Gravel Co. $19.05 per ton for 3,200 tons Type A Grade 4 Aggregate with amendments for a total of $60,960; and (2) Capitol Aggregates, LTD - $46.13 per ton for 3,200 tons Type B Grade 7 Aggregate for a total of $147,616. He stated the City has budgeted $257,500 for street repair. It is his recommendation that the bid be awarded to R. E. Janes Gravel Co. Councilmember Nash moved to award the bid to R. E. Janes Gravel at $19.05 per ton for 3,200 tons Type A Grade 4 aggregate for a total of $60,960. The motion was duly seconded by Councilmember Garcia and carried by unanimous vote. William Mull, Police Chief presented for consideration Resolution R10 -223, a Resolution of the City Council of the City of Plainview, Texas, Approving the Request of Plainview Radio in Conjunction with Hale County Dairy Families to Host the 2010 Annual Red, White & Moo Parade; Authorizing the Filing of the Agreement for the Temporary Closure of State Right -Of -Way with the Texas Department of Transportation for this Annual Parade; Declaring that the Event Serves a Public Purpose; and Agreeing to City Council Minutes June 8, 2010 Page 2 of 4 Comply with Regulations. He stated this Resolution pertains to the Red, White & Moo parade on July 3rd at 4:00 p.m. The parade route will begin at the depot and travel South and disband at Broadway Park. The City is requesting closure for 15 to 20 minutes. Mayor Anderson asked for public comment. There was no public comment. Councilmember Dunlap moved to approve Resolution R10 -223. The motion was duly seconded by Councilmember Ortega and carried by unanimous vote. Chief Mull presented for consideration Resolution R10 -224, a Resolution of the City Council of the City of Plainview, Texas, Approving the Request of Bar -None Rodeo Association to Host the 2010 Annual Bar -None Rodeo Parade; Authorizing the Filing of the Agreement for the Temporary Closure of State Right -Of -Way with the Texas Department of Transportation for this Annual Parade; Declaring that the Event Serves a Public Purpose; and Agreeing to Comply with Regulations. He stated this is for the Bar - None Rodeo Parade on June 26 It also begins in the downtown area and travels south and disbands at 3 and Broadway. The City is requesting closure for 20 -30 minutes. Mayor Anderson asked for public comment. There was no public comment. Councilmember Nash moved to approve Resolution R10 -224. The motion was duly seconded by Councilmember Dunlap and carried by unanimous vote. Chief Mull presented for consideration Resolution R10 -225, a Resolution of the City Council of the City of Plainview, Texas, Authorizing the Filing of a Grant Application for the Police Department Equipment Enhancement Project 2010 With The Criminal Justice Division of the Governor's Office of the State of Texas; Designating an Authorized Official and Authorizing Such Official to Execute all Documents Necessary; and Pledging Compliance to the Awarded Grant Program. This is for the Edward Byrne Memorial Justice Assistance Grant issued through SPAG. It is a 100% grant and does not require matching funds from the City. The requirements are for the City to furnish a Resolution and have the City and County sign an Interlocal Agreement. This is in the docket for the County next week. The grant amount is for $10,186 and the department is requesting to purchase a Sokia total station which would be used in accident investigations and crime scene searches. The total cost of the equipment is $13,750. The balance of $3,564 could be paid through several possible sources. Mayor Anderson asked for public comment. There was no public comment. Councilmember Ortega moved to approve Resolution R10 -225. The motion was duly seconded by Councilmember Starnes and carried by unanimous vote. Chief Mull presented for consideration to take necessary action regarding City- County Interlocal Agreement Edward Byrne Memorial Justice Assistance Grant. This is the other procedure in the grant. Hale County is not eligible to receive these funds; however we are required to get the County to sign this agreement. He will present this to the Commissioner's Court and request they sign off on the agreement. City Council Minutes June 8, 2010 Page 3 of 4 405 406 Mayor Anderson asked for public comment. There was no public comment. Councilmember Nash moved to approve the City- County Interlocal Agreement Edward Byrne Memorial Justice Assistance Grant. The motion was duly seconded by Councilmember Ortega and carried by unanimous vote. There being no further business, Mayor Anderson adjourned the meeting at 7:30 p.m. Belinda Hinojosa City Secretary City Council Minutes June 8, 2010 Page 4 of 4