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HomeMy WebLinkAbout08 0624 min207 The Plainview City Council met on June 24, 2008 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 3:45 p.m. on June 20, 2008. Mayor John C. Anderson presided. Councilmembers present were: Cathy Waggoner-District 2, Belinda Pena- District 3, John N. Bertsch-District 4, Ron Trusler-District 5, Wendell Dunlap-District 6 and Roland Nash-District 7. Councilmember Kelvin Tipton-District 1 was absent. Staff members present were: Greg Ingham-City Manager, Leslie Pearce-City Attorney, John Castro-Director of Community Services, Will Mull-Police Chief, Dale Simpson- Director of Civil Service, Philip Mize-Fire Marshal and Belinda Hinojosa-City Secretary. News Media Representative: Tommy Young-Plainview Daily Herald Councilmember Cathy Waggoner delivered the invocation. Councilmember Cathy Waggoner led in the Pledge of Allegiance. Councilmember Trusler moved to adopt the consent calendar. The motion was duly seconded by Councilmember Dunlap and carried by unanimous vote. Items approved on the consent calendar included approval of the minutes of June 10, 2008 and June 19, 2008; granting of excused absence to Kelvin Tipton; authorize the donation of bunker gear through the Texas Forestry Helping Hands Program; ratify the Mayor's Appointment of JoAnna Rios to the Plainview Housing Authority with said term to expire on June 23, 2009 and authorize Mayor to sign Municipal Solid Waste Landfill Contract with L.D. Kemp for landfill Cell D Construction. Greg Ingham presented for consideration Resolution R08-188, 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 June 12, 2008; Approval of Certain Interim Rates; Authorizing the City to Join With Other Cities in The Alliance of Xcel Municipalities ("AXM") to Direct the Activities of Lawyers and Consultants; Authorizing the Hiring of Attorneys and Consultants; Requiring Reimbursement of Reasonable Legal and Consultant Expenses; 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 or about June 12, 2008 Southwestern Public Service, known in our area as Xcel Energy filed an application to increase its base rates by approximately $84.2 million in annual revenue. The SPS application proposes an effective date of July 17, 2008 for these rates to take effect. Some key elements are as follows: 1. $84.2 million in total increase; 2. Return on equity of 11.2%; 3. Change the way franchise fee is addressed; 4. Increase base rate, for example a monthly customer who uses 1000 kwh rates would increase by $10.33; and 5. Service availability charge would increase from $5.10 to $6.50 per month. Also included is a request for approval of interim rates to cover costs associated with a new power plant coming on line in Eastern New Mexico in Lea County. When they City Council Minutes June 24, 2008 Page 1 of 3 208 bring it on line, costs will increase about $18 million on an annual basis. They however are assuring us that on an interim basis they will put a fuel reduction in place so that you would actually see a net decrease. The group took a look at that to make sure protections are in place so that if we authorize to implement the $1.5 million a month on the increase side, we will have a fuel charge reduction of $1.955 million. In the long run they will be included in another part of the rate case. Basically the Alliance of Xcel Municipalities is asking the Councils to approve a resolution that will suspend the base rate filing for a period of 90 days which will take us into October 15, 2008 and we recommend the approval of the interim rates in accordance with the settlement reached with SPS in the prior rate case. Mayor Anderson asked for public comment. James Odom of 3509 Kirchwood expressed discontent with Xcel Energy over a recent issue. Councilmember Dunlap moved to approve Resolution R08-188. The motion was duly seconded by Councilmember Pena. Mayor Anderson asked for Council comment. Councilmember Truster asked if we would get hit with a rate increase down the road and if these 90 days is a stall to get a little bit of reprieve from an ultimate increase. Mr. Ingham stated yes, this also gives the cities a chance to look at the filing. The actual application is around 40,000 pages of testimony that Southwestern Public Service has filed. It is a very complex issue and we are going to do the best we can to control what happens with the rate structure. Councilmember Dunlap asked what amount of increase we might expect as far as base rate are concerned. Mr. Ingham stated different numbers have been floated around. Initially they showed that the net increase was $61.3 million and the actual filing says it is $84.2 million. What they were doing was they were taking some of the fuel costs savings from the Lea Power plant deal. The actual filing however is $84.2 million. They are showing with a customer who uses 1,000 kwh, the increase would be $10.33 per month which equates to a 10% increase in base rates. They will also increase the service availability charge from $5.10 to $6.50. Mayor Anderson asked for a vote on the matter. The motion carried unanimously. Mr. Ingham presented for consideration and to take the necessary action regarding the YMCA/Optimist Softball Field Agreement. The City has been working with the Optimist Girls' Softball Group and the YMCA. The Optimist group started the girls' softball program in Plainview about three years ago. They started out playing on some of our t-ball and minor league fields and as they have grown they want to have a field to call their own. The City has been working with the YMCA. They have moved all t-ball, soccer games and flag football games that used to be played on Field No. 3 over to the fields south of the YMCA. This agreement basically says that the Optimist Girls Softball has control of Field No. 3. The YMCA will assist us in coordinating the use because the YMCA manages the other two fields for the City. This will make it clear that the Optimist Girls Softball has a home to play ball and they will continue to work with us on use of some of our other fields and they are continuing to work with the school district. City Council Minutes June 24, 2008 Page 2 of 3 209 Mayor Anderson asked for public comment. Tommy Young of 1605 W. 7th Street stated he is President of the Optimist Club and thanked the City for their part in this agreement. James Odom of 3509 Kirchwood stated it is a pleasure to see people out with their kids. Mayor Anderson asked Mr. Young how many girls are in the softball program. Mr. Young advised that there are about 164 in the program. Councilmember Trusler moved to authorize Mayor to sign agreement regarding the YMCA/Optimist Softball Field. The motion was duly seconded by Councilmember Waggoner and carried by unanimous vote. Mayor Anderson moved to go into closed session to deliberate the appointment, employment, evaluation, reassignment, duties, discipline or dismissal of a public officer or employee, or to hear a complaint or charge against an officer or employee. [Tex. Gov't. Code Section 551.074]. City Attorney Evaluation. The motion was duly seconded by Councilmember Trusler and carried by unanimous vote. Mayor Anderson recessed the meeting at 7:23 p.m. Mayor Anderson called the meeting back in open session at 8:14 p.m. Councilmember Bertsch moved to grant a 6% pay raise to Leslie Pearce, City Attorney effective May 1, 2008. The motion was duly seconded by Councilmember Trusler and carried by unanimous vote. There being no further business, Mayor Anderson adjourned the meeting at 8:17 p.m. Belinda Hinojosa City Secretary 1 City Council Minutes June 24, 2008 Page 3 of 3