02-21-1983 (City Council) Agenda Packet Time posted: 4: 15 p.m.
Date posted: 2-17-83
t sbh
OF 10,
G LAKE "f
LAVON
WYLIE to LAKE
RAY HUBBARD
AGENDA
CALLED COUNCIL MEETING
FEBRUARY 21, 1983
6:00 P.M.
1. Call to order; invocation. ± 12,4
(�',
;J
2. Board bus and conduct on-site public hearing on annexation
of 3.974 acres out of E.C. Davidson Survey, Abstract 266 ��
(west F.M. 544) including Century Ready Mix Company. G
3 w--'''
3. 6:30 p.m. conduct on-site public hearing on annexation of
7.038 acres out of W. D. Penny Survey, Abstract 696 (NQrth
Ballard/F.M. 2514, north of Cottonbelt Railroad) . 4&
4. 7:00 p.m. conduct public hearing on request to rezone 36
acres out of 43.401 acre tract of land out of the Richard
D. Newman Survey for a mobile home district.
,s5Confirm validity of petition for a referendum for bingo
games to be conducted in Wylie under the Bingo Enabling
Act.
,'Approve exchange of approximately four acres of park land
for four acres of farm land presently owned by Hassie Hunt
Estate to be used as park land and authorize the Mayor to
execute the contract and deed of exchange with Hunt Properties
Incorporated.
Reconsider tabled request for a variance to permit construc-
tion of a duplex An S ut cond prior to making street
improvements. -�-7
X. Consider proposed electrical permit fees.
Consider resolution authorizing creation of a volunteer
7(
police unit designed to work in cooperation with the Wylie
Police Department.
Consider retainer of consulting engineer. (This may require
an executive session. )
St. Consider authorizing purchase of radio broadcast antenna.
12. Adjourn.
114 NORTH BALLARD P.O.BOX 428,WYUE,TEXAS 75098 PHONE(214)442-2236
AGENDA BRIEF
February 21 , 1983
Item no. 2 calls for a 6:00 P.M. on-site public hearing concerning the annexation
of 3.974 acres on which is located the new Century Ready Mix Concrete Plant. The
Company wishes this land to be brought in to the City and to be zoned industrial so
that they may connect to the water system of the City and to have police and fire
protection. A new water main will be extended at the expense of Century Ready Mix
within the next two to three weeks. A new fire hydrant and temporary water pipe
has been extended to give temporary water service.
Item no. 3 involves an on-site public hearing to annex 7.038 acres located on
the west side of North Ballard (F.M.2514) , and North of Cottonbelt Railroad. The
owner has petitioned for annexation and has requested rezoning for single family
residence for the three (3) acres adjacent to North Ballard with industrial zoning
for the four (4) acres located on the west end of the property. The owner will
have his residence on the front three (3) acres and will use the west four (4)
acres to store his construction equipment.
Item no. 4 involves a public hearing on a request for rezoning thirty-six (36)
acres out of the original 43.401 acre tract of land located at the south end
of Martinez Lane. The zoning commission cast a tie vote on the request for
rezoning this property for a Mobile Home Park at its meeting of January 27th.
The current plan and request calls for the thirty-six (36) acres to be rezoned
for a Mobile Home Park, with the two hundred (200) foot strip of land adjacent
to and South of Alanis Lane to be left as agricultural zoning.
Item no. 5 calls for confirmation of the validity of the signatures on a petition
for a referendum to legalize bingo in Wylie. The Wylie Volunteer Fire Department
Ladies Auxiliary submitted the petition to the City Council at its meeting of
February 8th. The City Secretary will confirm that the legal requirments for the
calling of the referendum have been met with reference to the petition. Upon
confirmation, the Mayor will order the ballot for the April 2nd election to be
amended to include the bingo referendum.
Item no. 6 deals with an even exchange of approximately four (4) acres of land
between the City and Hunt Properties Inc. The forty-one acres (41 ) included in
the Wylie Community Park include four (4) acres located to the east of a small
creek which runs along the eastern boundary of the Park. If the City is to
utilize this four (4) acres, one or more bridges must be built to span that creek.
Hunt Properties, on the other hand, owns approximately four (4) acres located
adjacent to the Park and on the west side of the creek. A map showing the location
of these properties will be exhibited at the Council meeting. The farmer who has
leased the Hunt Properties land, had difficulty in reaching the four (4) acre
tract of land owned by Hunt Properties, so there has, been a basic agreement reached
between Hunt Properties and the City of Wylie to simply exchange the two (2) tracts
of land. The benefits would be obvious to the Hunt Properties, and the City would
have all of its forty-one (41 ) acreslocated on the west side of the creek. In
addition, the City would have a wide drainage easement which will include both banks
of the creek and will permit the City of Wylie to maintain the creek as a part of
the Park.
Agenda Brief
Page 2
Item no. 7. At its meeting of February 8th, the City Council received a variance
request from a developer to permit a duplex to be built on South Second prior to
making street improvements. The matter was tabled to allow the City administration
to determine the legal status of the street. If the correct information is available
in time for the Council meeting, this item will be discussed; if not, it will be
delayed until the meeting of March 8th.
Item no. 8. The Wylie Electrical Board has recommended a new fee schedule for
issuance of electrical permits. The City Council will consider whether or not
to adopt this schedule of fees, and if so, an ordinance to that affect will be
adopted. The Electrical Board feels that the new schedule of fees would be more
in line with neighboring cities.
Item no.9 involves adoption of a resolution autorizing a volunteer police unit to
be created within the Wylie Police Department. Membership in the volunteer unit
would be limited to those peace officers who have been or who are currently
licensed as peace officers of the State of Texas. Members would serve without pay,
but would wear uniforms furnished by the City and would be volunteer commissioned
police officers.
Item no. 10. The consulting engineer, if retained, will review plats and perform
other design services.
Item no. 11 . A private business man has agreed to sell a 90 ft. tall , free-standing
radio transmitting tower to the City at a substantial discount. In addition, he has
agreed to pay the City $500. for a permit to install his radio repeater instrument
on the tower. The Volunteer Fire Department has agreed to pay the $900. cost out
of its funds if the City will reimburse the V.F.D. as funds become available.
LSV:cj
RESOLUTION
WHEREAS, the City of Wylie is a small community with limited
resources, yet with constantly increasing demands for services, and
WHEREAS, dedicated and civic-minded citizens presently serve
as volunteers in many areas of local public service, and
WHEREAS, a volunteer police unit would supplement the law
enforcement activities of the City of Wylie, while keeping cost
increases to a minimum, NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS:
Section 1. That the City Manager and the Chief of Police be
and they are hereby authorized to recruit and uniform volunteer police
officers who have held or presently hold a peace officer's commission
with the State of Texas to serve as members of a volunteer unit in the
Wylie Police Department.
Section 2. That said officers would understand that there
would be no remuneration for their services, but that the City would
bear the expense of one set of uniforms and accompanying equipment for
each volunteer officer; that the City would bond each officer and would
carry injury/disability insurance coverage for them while on the job.
Section 3. That the City administration organize the volunteer
police unit and operate it in accordance with the guidelines contained
in a memo from Chief Abbott to the City Manager dated February 2, 1983.
Section 4. That the sum of $1,500, to cover the cost of uniforms
and insurance premiums for volunteer policemen be appropriated out of
the general fund for use during the remainder of fiscal year 1983.
Section 5. That certified copies of this resolution be furnished
appropriate officials.
DULY RESOLVED ON THIS, THE TWENTY-FIRST DAY OF FEBRUARY, A.D. 1983.
Robert B. Squires, Mayor
ATTEST:
Gail Wallace, City Secretary
February 18, 1983
TO: Mayor and City Council
City of Wylie, Texas
I , Gail Wallace, City Secretary of the City of Wylie, Texas do
hereby certify that 123 signatures appearing on the petition
presented to you on February 8, 1983 requesting an election be
held to legalize bingo games are declared valid. This number
represents an excess of the 10% required to call the election.
:////4a!,/ ,/
•
11 ace.
City Secretary
City of Wylie, Texas
MEMORANDUM
FROM: Larry Allen, Fire Chief
TO: Lee S. Vickers, City Manager
DATE: February 18, 1983
SUBJECT: Radio Tower
In regards to the radio tower that was discussed some weeks ago, Ken's
Communication has advised that for the same price as the 60 foot tower
he would furnish us with another 30 feet for the same price, if the
City would give him written agreement to place his repeater system
on the tower. This would help him, as well as greatly increase radio
communication for the Fire Department and Police Department. Myself
and Chief Abbott are in agreement with this arrangement.
The Firemen will erect the tower with the use of some City equipment.
LKA:gw
FFB
'I'Y OF' WYLIIC 3R£Co
C I
114 N. BALLARD ST. - P.O. BOX 428
WYLIE, TEXAS
75098-0428
• MEMORANDUM N\
2 February 1983
TO: Lee S. Vickers, City Manager
FROM: R. D. Abbott, Chief of Police
RE: Volunteer Unit
I submit this proposal to you per our previous conversations regarding
this subject, to request approval of this proposition to supplement the
police force for the City by forming a volunteer police unit.
As we have discussed earlier, I have checked with Loyd Mathews of the
Texas Commission on Law Enforcement Officer Standards and Education, and
he has advised that a volunteer unit, unlike a reserve unit, may be used
by the cities, and does not have to be "established" by City Ordinance or
' resolution. He does recommend, however, that the unit have the approval
of the City Council and/or City Manager--in writing--and 1 heartily agree!
The officers which I plan to authorize would be only those who are full
fledged peace officers--that is , they would all have (at one time or another)
held a peace officer' s commission with the State, and now, for whatever
reason , are no longer in law enforcement (but still could be, as far as the
Commission is concerned) . They would be licensed State of Texas Peace Offi -
cers. They would only be commissioned by the Wylie Police Department--
that means that they could only work in law enforcement for the City of
Wylie; they could not, for example, for for the Sheriff' s Office during
the day as a deputy and work for Wylie P.D. at night as a patrolman.
There, according to the Commission , is no limit to the number of officers
that could be assigned to work for us on a volunteer basis. I would con-
sider a maximum volunteer unit of ten at this time. They would all be
commissioned as regular officers , and they would be scheduled to work
by the Chief of Police, in whatever capacity they are needed.
Memorandum-Volunteer Police Unit
24 January 1983
Page Two
These officers would not be "on duty" unless authorized to be so. I plan
to have these officers fill in for our existing paid personnel force when
they are out due to illness , injury , vacation , etc. , and the officer may
be assigned to work as dispatcher--not only as a back-up patrolman. A very
real possibility would be to have these officers assist when we have any
type of emergency situation--natural disaster , etc. , giving us additional
manpower when necessary.
These officers would understand before being accepted into the unit that
there would be no remuneration for their services. The City would have to
bear the expense of supplying each officer with one set of uniforms and
the accompanying equipment. In my estimation , this would run approxi-
mately $220.00 per officer ( I have included a 10% increase over the cost
of items purchased in 1982) . The City would have to bond these officers
and also carry insurance on them--as far as injury/disability due to an
on-the-job accident , etc.
The only other direct expense would possibly be an increase in fuel usage--
probably up to a 25% increase, and automotive maintenance would probably
also increase slightly.
Of course, any officer accepted into the volunteer unit will be subject
to all Wylie Police Department regulations. Additionally, when the
volunteer officer is on duty with a regular full -time officer , the
regular officer will be the officer-in-charge.
Please let me have your thoughts on this.
R. D. Abbott
Chief of Police
RDA:ejg
CITY 0 P' WYLI� 3R�CPea
114 N. BALLARD ST. - P.O. BOX 428
WYLIE, TEXAS
75098-0428
MEMORANDUM
2 February 1983
TO: Lee S. Vickers, City Manager
FROM: R. D. Abbott, Chief of Police
RE: Volunteer Unit
I submit this proposal to you per our previous conversations regarding
this subject, to request approval of this proposition to supplement the
police force for the City by forming a volunteer police unit.
As we have discussed earlier, I have checked with Loyd Mathews of the
Texas Commission on Law Enforcement Officer Standards and Education , and
he has advised that a volunteer unit, unlike a reserve unit, may be used
by the cities, and does not have to be "established" by City Ordinance or
resolution. He does recommend, however, that the unit have the approval
of the City Council and/or City Manager--in writing--and I heartily agree!
The officers which I plan to authorize would be only those who are full
fledged peace officers--that is, they would all have (at one time or another)
held a peace officer 's commission with the State, and now, for whatever
reason , are no longer in law enforcement (but still could be, as far as the
Commission is concerned) . They would be licensed State of Texas Peace Offi -
cers. They would only be commissioned by the Wylie Police Department-
that means that they could only work in law enforcement for the City of
Wylie; they could not, for example, for for the Sheriff's Office during
the day as a deputy and work for Wylie P.D. at night as a patrolman.
There, according to the Commission , is no limit to the, number of officers
that could be assigned to work for us on a volunteer basis. I would con-
sider a maximum volunteer unit of ten at this time. They would all be
commissioned as regular officers , and they would be scheduled to work
by the Chief of Police, in whatever capacity they are needed.
J
Memorandum-Volunteer Police Unit
24 January 1983
Page Two
These officers would not be "on duty" unless authorized to be so. I plan
to have these officers fill in for our existing paid personnel force when
they are out due to illness , injury , vacation , etc. , and the officer may
be assigned to work as dispatcher--not only as a back-up patrolman. A very
real possibility would be to have these officers assist when we have any
type of emergency situation--natural disaster , etc. , giving us additional
manpower when necessary.
These officers would understand before being accepted into the unit that
there would be no remuneration for their services. The City would have to
bear the expense of supplying each officer with one set of uniforms and
the accompanying equipment. In my estimation , this would run approxi-
mately $220.00 per officer ( I have included a 10% increase over the cost
of items purchased in 1982) . The City would have to bond these officers
and also carry insurance on them--as far as injury/disability due to an
on-the-job accident , etc.
The only other direct expense would possibly be an increase in fuel usage--
probably up to a 25% increase, and automotive maintenance would probably
also increase slightly.
Of course, any officer accepted into the volunteer unit will be subject
to all Wylie Police Department regulations. Additionally, when the
volunteer officer is on duty with a regular full-time officer, the
regular officer will be the officer-in-charge.
Please let me have your thoughts on this.
R. D. Abbott
Chief of Police
RDA:ejg
1 a l r)
.4 /7 ---��— TML .LEGLSLATIVEREPORT :- ' ''''-1114
. , ii,,----6,.-....`i '
; '-Published By The Texas Municipal League
--ir . h=,sap j ,61020 Southwest Tower . *Austin,=Texas,78701 15121478-6601
February 18, 1983 Volume 29, No. 3
1. Pothole Bill Gains Momentum
The 600+ city officials attending TML's February 14 Legislative Seminar in
Austin provided a boost to the League's highest '83 priority--passage of the
"Pothole Bill." Seminar participants visited with their local legislators at
the Capitol and succeeded in developing broad support for the legislation,
which would create a state-funded program to help fix deterioriating city
streets and bridges.
With the introduction of S.B. 287 by Senator John Traeger (D- 4 74.`r
Seguin) and H.B. 632 by Representative David Cain (D-Dallas), F ,
TML now has companion bills in both the Senate and the House. 1,, , f 4
("Companion bills" are simply identical measures which can be
moved simultaneously through both houses of the Legislature.) if 'r "
Under S.B. 287/H.B. 632, the "Pothole Bill," $500 million/year in `
additional spending would be provided to the Texas Highway Traeger
Department for repairs and improvements to the state highway sys-
tem. The measure also would appropriate $100 million/year for
city street repairs, with funding distributed on a pro rata basis / f
according to the number of paved street miles in each city. (See f -
fill
February 4 "TML Legislative Report" for full details.)
Enclosed with this newsletter is a tally sheet which shows the '
level of legislator support for S.B. 287/H.B. 632 to date. If no ' .
position is shown for your Senator or Representative, it is be- I
cause he or she has not yet been contacted about the Pothole
Cain
Bill. If this is the case, please contact your legislators im-
mediately, stress the importance of the Pothole Bill, and then use the at-
tached questionnaire form to report your findings to the TML office.
2. Utilities Mount "Anti-reform" Campaign
The electric utility industry has launched intensive 'grass-roots' efforts to
undermine proposals by TML and other organizations to reform the state utility
regulatory law. (See related news article, attached.) The companies' goal is
to do everything possible to block the Legislature from making much-needed
changes in the Public Utility Regulatory Act.
The companies have contacted tens of thousands of their stockholders and em-
ployees, as well as numerous city councils and chambers of commerce, telling
them to urge their senators and representatives to vote against legislative
'quick fixes' that would threaten the financial solvency of the utility
industry. Additionally, some utility lobbyists have warned municipal offi-
cials that utility reform proposals backed by TML are 'irresponsible, ' and
should be opposed by the cities. These maneuvers are consistent with divide- .
and-conquer techniques the companies unsuccessfully used during previous
legislative sessions in their attempts •to weaken the regulatory process by
revoking the cities' original jurisdiction over electric rates.
In reality, the TML reform package is anything but 'irresponsible. ' Among
other things, it would require thorough scrutiny of fuel pass-throughs by the
PUC; place realistic limitations on allowances for construction-work-in-
progress; create an independent Office of Public Counsel to serve as watchdog
over the PUC; and strengthen the hand of the cities in the regulatory process.
Of all of the many utility-reform proposals currently pending in the Legisla-
ture, the TML plan is among the most moderate. Therefore, it is unclear as to
what the companies hope to gain by criticizing the League's plan, since the
alternatives would be much worse, from their perspective.
Any city council considering taking the companies' side in this controversy
should be advised that some utility lobbyists have let it be known that they
will push legislation to put city utilities under the jurisdiction of the PUC.
The purpose of this retaliatory gambit apparently would be to divert TML's
attention away from the real issues, and require us to focus our efforts on
keeping city utilities from being placed under the PUC.
3. Analyses of City-Related Bills
Enclosed with this newsletter is a summary of city-related bills introduced to
date. Future editions will cover related legislation in the weeks ahead.
Utilities cultivate grass•roots
support to head off reform
By Jackie Calmes representatives'visits to local edi- rate cases. The league's package
Austin Bureau of The News tors. "We went out and got 'em," also calls for a consumer advocate
AUSTIN—With electric comps- Cory said. at the PUC,but not for election of
ri +nder siege in the state capi• Sen. Kent Caperton, D-Bryan, the commissioners—as Gov.Mark
�d their representatives are seek- sponsor of a wide-ranging utility- White and other legislators pro-
ing grassroots support from civic reform bill,said Houston Lighting ps.
groups,stockholders and editorial & Power Co. has sought support "Our city officials indicate they
boards to hold off utility reform. from officials in at least two coun- are getting a lot of lobbying,"But.
It was at a Tuesday meeting of ties in his district.Officials in one ler said.
one civic group,the Downtown Ro-
city,Sealy,were persuaded to pass a Dick Brown,the league lobbyist,
tary Club in Austin, that George resolution in opposition to"quick• said utility representatives want
Cowden announced his resignation fix"reforms. the league to help defeat proposals
and the resignation of Tommie Other legislators say their of- to elect the PUC.
Gene Smith from the embattled 3 fices have received letters from But Brown said the league has
membet Public Utility Commis- utility company employees and turned the utility representatives'-
sion. The Rotarians were suppor. stockholders. offers.Although city officials have
tive.And so are other local busi- "The companies are mounting a taken no public stand on PDC elec-
ness groups that receive the pro- very agressive campaign,lobbying lions,they refuse to quietly oppose
utility and pro-PUC pitch,company the chambers of commerce, civic the proposal in order to gain con-
spokesmen say. clubs,you name it,"said Austin at- cessions from the utility lobby.In
"Chamber of Commerce-typetorney Don Butler,a frequent util-
hat itycritic."They'recallingJon League president Luther
people ought to recognize thaty' in all of Jones.
we've got to have more stability for their chits — and those are sub-
Supporters of PUC elections ri-
our utilities to really bring more stantial given their stature in localP
communities." vately say the reform measure has
industry into this state," said T. little chance of passing the Legisla-
Louis Austin, board chairman of Butler, who represents the. lure,but the utility lobby is taking
Dallas-based Texas Utilities Co. Texas Municipal League on utility
"That is what we're saying, and matters,said-the firms are engag- no chances and is gearing up to kill
we're getting a pretty good re- ing is"a divide-and-conquer"strat- it.
sponse.' egy designed to persuade city offi-
Dick Cory, Austin lobbyist for cials not to support the municipal
three Texas electric companies league's reform package.
owned by Central and Southwest The league proposes to abolish Dallas Morning News
Corp.,says"35 to 40"recent news- all automatic charges,particularly 2/17/8 3
paper editorials have supported for fuel,on ratepayers'bills.Such
utilities. Many of the editorials, an action would require utilities to
Cory said,were the result of utility justify such costs in their regular
I f---
I
r/IiYT^Yii1'�T^�-, 1111111 , 141MLLE61S1A11VE :REPORTJ
Published By The Texas Municipal League 7,
.ri,,,,;,a,v �/ 41020 Southwest Tower Cl *Austin,Texas"78701 (5121 478-6601 1
5
February 18, 1983 Volume 29, No. 3
1. Pothole Bill Gains Momentum
The 600+ city officials attending TML's February 14 Legislative Seminar in
Austin provided a boost to the League's highest '83 priority--passage of the
"Pothole Bill." Seminar participants visited with their local legislators at
the Capitol and succeeded in developing broad support for the legislation,
which would create a state-funded program to help fix deterioriating city
streets and bridges.
With the introduction of S.B. 287 by Senator John Traeger (D- ile1.
Seguin) and H.B. 632 by Representative David Cain (D-Dallas),
TML now has companion bills in both the Senate and the House. - it-
("Companion bills" are simply identical measures which can be
moved simultaneouslythrough both houses of the Legislature.) ,
g pr,,
. _
Under S.B. 287/H.B. 632, the "Pothole Bill, "
" $500 million/year in ( .-4.
additional spending would be provided to the Texas Highway Traeger
Department for repairs and improvements to the state highway sys-
tem. The measure also would appropriate $100 million/year for
city street repairs, with funding distributed on a pro rata basis t /
according to the number of paved street miles in each city. (See '-
February 4 "TML Legislative Report" for full details.) ,
-
Enclosed with this newsletter is a tally sheet which shows the R
level of legislator support for S.B. 287/H.B. 632 to date. If no
'
position is shown for your Senator or Representative, it is be- \
cause he or she has not yet been contacted about the Pothole
Cain
Bill. If this is the case, please contact your legislators im-
mediately, stress the importance of the Pothole Bill, and then use the at-
tached questionnaire form to report your findings to the TML office.
2. Utilities Mount "Anti-reform" Campaign
The electric utility industry has launched intensive 'grass-roots' efforts to
undermine proposals by TML and other organizations to reform the state utility
regulatory law. (See related news article, attached.) The companies' goal is
to do everything possible to block the Legislature from making much-needed
changes in the Public Utility Regulatory Act.
The companies have contacted tens of thousands of their stockholders and em-
ployees, as well as numerous city councils and chambers of commerce, telling
them to urge their senators and representatives to vote against legislative
'quick fixes' that would threaten the financial solvency of the utility
industry. Additionally, some utility lobbyists have warned municipal offi-
cials that utility reform proposals backed by TML are 'irresponsible, ' and
should be opposed by the cities. These maneuvers are consistent with divide-,
and-conquer techniques the companies unsuccessfully used during previous
legislative sessions in their attempts • to weaken the regulatory process by
revoking the cities' original jurisdiction over electric rates.
In reality, the TML reform package is anything but 'irresponsible. ' Among
other things, it would require thorough scrutiny of fuel pass-throughs by the
PUC; place realistic limitations on allowances for construction-work-in-
progress; create an independent Office of Public Counsel to serve as watchdog
over the PUC; and strengthen the hand of the cities in the regulatory process.
Of all of the many utility-reform proposals currently pending in the Legisla-
ture, the TML plan is among the most moderate. Therefore, it is unclear as to
what the companies hope to gain by criticizing the League's plan, since the
alternatives would be much worse, from their perspective.
Any city council considering taking the companies ' side in this controversy
should be advised that some utility lobbyists have let it be known that they
will push legislation to put city utilities under the jurisdiction of the PUC.
The purpose of this retaliatory gambit apparently would be to divert TML's
attention away from the real issues, and require us to focus our efforts on
keeping city utilities from being placed under the PUC.
3. Analyses of City-Related Bills
Enclosed with this newsletter is a summary of city-related bills introduced to
date. Future editions will cover related legislation in the weeks ahead.
Utilities cultivate grass-roots
support to head off reform
By Jackie Calmes representatives'visits to local edi- rate cases. The league's package
Austin Bureau of The News tots. "We went out and got 'em," also calls for a consumer advocate
AUSTIN—With electric comps- Cory said. at the PUC,but not for election of
r; order siege in the state capi- Sen. Kent Caperton, D•Bryan, the commissioners—as Gov.Mark
wl,their representatives are seek-
, sponsor of a wide-ranging utility- White and other legislators pro-
ing grass-roots support from civic reform bill,said Houston Lighting pose.
groups,stockholders and editorial & Power Co. has sought support "Our city officials indicate they
boards to hold off utility reform. from officials in at least two coun- are getting a lot of lobbying,"But.
It was at a Tuesday meeting of ties in his district.Officials in one ler said.
one civic group,the Downtown Ro-
city,Sealy,were persuaded to pass a Dick Brown,the league lobbyist,
tary Club in Austin, that George resolution in opposition to"quick- said utility representatives want
Cowden announced his resignation fix"reforms. the league to help defeat proposals
and the resignation of Tommie Other legislators say their of- to elect the PUC.
Gene Smith from the embattled 3 fices have received letters from But Brown said the league has
member Public Utility Commis- utility company employees and turned the utility representatives'
sion. The Rotarians were suppor- stockholders. offers.Although city officials have
tive. And so are other local busi- "The companies are mounting a taken no public stand on PVC elec-
ness groups that receive the pro- very agressive campaign,lobbying tions,they refuse to quietly oppose
utility and pro-PUC pitch,company the chambers of commerce, civic the proposal in order to gain con-
spokesmen say. clubs,you name it,"said Austin at- cessions from the utility lobby.In
"Chamber of Commerce-typetorney Don Butler,a frequent util- fact, League president Luther
people ought to recognize tat ity critic."They're calling in all of fact, League president Luther
Jones.
we've got to have more stability for their chits — and those are sub-
Supporters of PUC electionsri-
our utilities to really bring more stantial given their stature in local pp°rters P
industry into this state," said T. communities." vately say the reform measure has
Louis Austin, board chairman of Butler, who represents the little chance of passing the Legiila
Dallas-based Texas Utilities Co. Texas Municipal League on utility tore,but the utility lobby is taking
"That is what we're saying, and matters,said the firms are engag- no chances and is gearing up to kill
in"a divide-and-conquer"strat- it.
we're getting a pretty good re- ing 4
� .•• egy designed to persuade city offi-
Dick Cory, Austin lobbyist for ciais not to support the municipal
three Texas electric companies league's reform package.
owned by Central and Southwest The league proposes to abolish Dallas Morning News
-Corp.,says"35 to 40"recent news- all automatic charges,particularly 2/17/8 3
paper editorials have supported for fuel,on ratepayers'bills.Such
utilities. Many of the editorials, an action would require utilities to
Cory said,were the result of utility justify such costs in their regular
4. . TEXAS MUNICIPAL LEAGUE
r7 fZ7 "; 1020 Southwest Tower Austin, Texas 78701 (512) 478-6601
February 18 , 1983
TO: All Cities Served by General Telephone Company
RE: Rate Increase
On February 11 , 1983 , General Telephone filed an application for
a system-wide rate increase in the amount of $85.4 million per
annum.
A meeting of interested cities has been set for Friday,
February 25 , 1983 at 10 :00 a.m. in the 7th floor Conference Room,
Southwest Tower (TML Building) , 7th and Brazos, Austin, Texas.
If at all possible some representative from your City should plan
to attend this meeting.
At the meeting there will be a discussion of action to be taken
in the pending case, status of the Company' s appeals to the
courts, status of the Company' s additional revenues from its toll
settlements case with Southwestern Bell and a financial report
from the last case.
A prehearing conference has been set at the P.U.C. for Friday,
February 25 , 1983 at 9:00 a.m. Interventions must be filed by
Friday, February 22 , 1983. You are encouraged to file separate
interventions, even if tardy, to preserve your City' s particular
interests. To keep your options open, TML has filed a blanket
intervention for all its Member Cities. Please forward this
information to your governing body and all other interested
officials.
1 r
/
J
GTE—From Page One _- _ --
• for second-rate service." •• from $7.90 to $11.90 for residential
The PUC lifted the $4 million
Langley said the red in- customers and from $20.95 to $31.50
crease was prompted 1,1
diminishingpenalty last year. General Tele-
phone._ said its service improved for business customers
company earnings caused by re- The optional measured service,
Dallas Times Herald rebruary 1.duced long disrance service and gov- which is scheduled to begin in late
'aliment regulations. The fall in after the penalty was issued. but a 1983,would be available in the Dal-
earnings has threatened General poll conducted by one Texas mayor las suburbs of Plano, Irving. Car-
GTE requests '. Telephone's bond rating,he said. indicated that only 15 of 99 city of- rollton, Garland, Grapevine. A.le,
.�=He blamed the national recession Wale she contacted reported an lm- Keller, Lewisville, Rowlett and
•and competition from discount long- provenient in their telephone see- Wylie.
$85 . 5 million distance service for slashing corn- vice since the PUC took its action.
parry profits. Despite moves to cut Because of the phone company's The basic monthly measured ser-
vice coats. the company's record. Jtat;Boyle. legislative direr- vice would cost $10.15 for residen-
fits have "continued to slide." for of the Texas Consumer Assad- tial service. with callers being billed
increase
at least 2.5 cents for the first mwute
rate �Y�� atloic, said his group would oppose
"We have made efforts to reduce the rate hike and the measured ser- of a call and at least 1.5 cents for
and control magi. We have reduced vice requests., each additional minute. Discount
ByRICHARD S. DCTNHAM our work force by over 700 equiv. "The (Texas) Consumer Associ- rates would apply after 11 p.m. on
slant employee*"he said."We have anon looks with great skepticism on weekntghts and all day on
Austin Bureau just reached the point where we the tremendous increase being re- weekends. .
could not reduce costs any more quested by General Telephone in "I think measured service would
AUSTIN — General Telephone Co. of the without a substantial effect on cur- light of their record of inadequate be far fairer in the long run because
Southwest Friday asked the Public Utility Corn- tomer service. We had it choice of and poor service and poor manute- people who use the service more
mission for an$85.5 million rate increase,a nwve either reducing modernization or nance in their service area." would pay more," said Langley.
that would boost residential phone bills in some raise rates and increase the revenue General Telephone serves 800,000 "This would allow customers who
Dallas suburbs by more than 24 percent and in ... As distasteful as raising rated is, Texas custot}iers,including residents I
use the telephone less to control
some areas by more than 50 percent. we•prefer this rather than reducing of the Plano. Irving, Garland. Car- their cysts."
The request. if panted by the utility cone- these programs which our customers roUton, Lewisville. Those customers
mission. would raise monthly residential rates in have told us they expect" would see their basic rates go from
Dallas suburbs served by the company by $4 a Last year, the PUC granted GTE $16.85 to $20.63. Business service Langley said technological ad-
month. while business rates would increase by a $48.8 million rate Increase. The would go from$44.15 to$54.70. vances have (neared) the day when ,
$10.55. The monthly charge for Dallas-Fort company had requested a $110 tail- In Denton, the• rates would go home computers and video games
Worth area "extended metro service" would • lion rate hike. operate over telephone company
jump from$30 to 135. • In 1980, the company became the -
Commissioners set a preliminary hearing on first telephone utility in Texas his- lines. Heavy computer use of tele-
the request for Feb.25. tory to be assessed a multimillion- phone lines will cause measured see.
- dollar penaltysub- • vice to by the PUC for replace the current flat-rate
In its rate increase request. General Tele- ,
standard se�ce• telephone service, hepredicted.
phone also sought to introduce "measured ter- Al the time, public officials from P — •
vice" rates on an serves.
l basis in the Dallas and across the state presented a litany of
-Houston suburbs it serves, complaints against the company.
Measured service customers would pay a re•t One West Texas city attorney said
duced flat rate for the service, plus a charge for some emergency "911" calls to local '
the length and distance of every call'A similar police didn't get through to the po-
request made last year by Southwestern Bell was lice department. One mayor said
rejected by the PUC. • phones rang intermittently despite
The overall rate boost would increase GTE the fact that no one was calling.The •
general revenues by 15 percent, said company Irving city attorney complained of
president B.L.''Buddy"Langley. . , being charged "excessive rates ...
See GTE on Page t4
CITY OF' WYIrIIC
114 N. BALLARD ST. - P.O. BOX 428
WYLIE, TEXAS
75098-0428
MEMORANDUM
TO: City Council
FROM: City Manager" '
DATE: Feb. 21 , 1983
SUBJECT: General Telephone Company Rate Increase
On February 11 ,, 1983, General Telephone filed an application for a
rate increase amounting to approximately 85.4 million dollars per
year. They filed a letter with Mayor Squires which explains in brief
their request for the rate increase.
Today, we received a memo from Texas Municipal League concerning the
rate increase and a meeting of city officials to take place Friday
morning Feb. 25th at the headquarters of the Texas Municipal League.
In accordance with our current policy concerning rate increase, I
plan to attend that meeting.
Last year, GTE requested a 110 million dollar rate increase and was
granted 46.8 million. This year, they plan to offer an optional
feature to cities like Wylie and other suburban cities of Dallas, under
which a basic monthly measured service fee would be charged at the rate
of $10.15 for residential service. Callers would be billed at least 2.5
cents for the first minute of a call outside the immediate calling scope
plus about 1 .5 cents for each additional minute. For example, if a
resident of Wylie wanted to call Dallas their phone bill would be $10.15
per month plus the metered or measured charges for the calls actually
made to Dallas or Irving or other cities outside the calling scope of
Wylie. In essence, those who did not make many calls outside of Wylie
would have the basic phone charge, while those who made many calls would
have the basic charge plus the measured service charges.
Mr. Robert Stuart, GTE, told me they planned to use this as an optional
service, but the PUC may make it mandatory for cities like Wylie, Lewisville,
Rowlett and Grapevine, etc.
Please discuss this issue at your council meeting on the 21st and advise
me of your wishes with regards to the optional measured service feature
of the rate increase request.
J
February 9, 1983
Dear Mayor:
General Telephone Company of the Southwest has filed an application with the
Public Utility Commission of Texas requesting rate adjustments in the state.
The following information will outline our needs for the new revenues. An
overview of the proposed changes is attached.
We are requesting $85 million in new revenues, about half of which is the
result of changes dictated by the Federal Communications Commission as it
deregulates certain areas of the industry and emphasizes its policy of
restructuring rates toward cost-based pricing.
In addition to the impact of deregulation and the required restructuring of
prices as mandated, we are filing to improve (1) earnings which have fallen to
9.5 percent from the 12.5.percent authorized last year, which we never
obtained; and (2) interest coverage, which is critical to the company's bond
rating among financial agencies, that has fallen to 2.68 and poses the danger
of our bond rating falling to BBB if not improved.
All of these influences require us to either raise rates or cut back our
service improvement and modernization programs. As distasteful as raising
rates is, we prefer this rather than reducing these important programs.
We are not seeking new revenues without first having looked at every possible
way of curtailing expenses. Over the 12 months covered in our filing, we have
reduced our work force requirements the equivalent of approximately
700 employees for total company. All areas of controllable expenses are
monitored closely by senior management.
However, these efforts are not enough. Our modernization programs and the
outside forces of deregulation, inflation, competition, low earnings and the
continuing need for financing give us no alternative but to ask for higher
rates if we are going to give customers the quality of service they want.
During the same period, we spent over $321 million in Texas to meet our
commitments to improve service and to modernize. Our modernization program is
in high gear and we want to continue this momentum. But to do so, it is
essential that we receive new revenues.
-more-
•
Page 2
Inflation has not been as dramatic an influence this past year, but it
continues to drive prices up. Our cost to build telephone plant continues to
be higher than in the past. For example, in September 1981, our investment
was $1,651 per customer line. For the 12 months ending Sept. 30, 1982, we
added 33,385 customer lines at a cost of $7,918 per line. This has the effect
of raising our investment $199 per line from the level that was used in
setting the rates we now have in effect.
To obtain the financing required during the rate case period, we financed
$150 million in•common stock, preferred stock and bonds. As we continue our
modernization program, we will require a tremendous amount of additional
external financing, making our bond rating extremely critical to our customers
as well as to us. The rating agencies look very closely at our interest
coverage, and we do not look good in this important category. Our net income
needs to be at least three times our fixed charges or interest expense.
During the test period, our interest coverage fell from 2.76 to 2.68 and that
trend is still downward.
Our present bond rating is A-. Without improvement, we are facing the strong
possibility that it will be dropped to BBB. A reduction in our bond rating
would affect our customers through higher interest rates charged a BBB
company; charges that are eventually paid by the customer. We also face a
possible slowdown of our modernization program since some investors are
prohibited from purchasing bonds issued by companies with less than an
A rating.
Modernization has a substantial effect on the price of service since it is
tied to recovering the capital already invested in the equipment in service.
Like other businesses, we recover that capital through depreciation although
the FCC rules are somewhat different from other businesses.
Depreciation rates are set by the FCC every three years. 1983 is the year
they will be set for General Telephone. If it were not for modernization,
capital recovery and expensing of station connections, our request would be
much lower. About 45 percent of our request is for capital recovery and
station connection expensing.
Of course, we are pleased with the modernization and service improvement
progress we made during 1982. We see positive evidence of the programs
implemented and are meeting all of the commission service standards. This is
not to say we do not have several areas that still give us concern and require
that we continue our efforts, but we have identified these problem areas and
have corrective programs in action.
During 1982, we replaced 10 offices with electronic switching systems. In
1983, we will add 2 offices in high growth areas and replace 13 others, all
with the modern electronic switching systems. By the end of 1984, 19 other
offices will handle customer calls through these sophisticated systems,
meaning that almost 50 percent of our customers will be served by electronic
switching centers.
-more-
Page 3
As I said earlier, our only alternative to asking for new revenues is to cut
back expenditures, which would naturally slow our modernization program. As
you know, we went through that alternative in 1978-79 and both our customers
and the company shared the grief of that mistake, a mistake we do not want
repeated.
Our policy is to provide whatever service is in the public interest as long as
we are properly compensated.
One such offering included in this filing, to be offered initially in only our
metropolitan areas, is optional measured service. This service is being
proposed for the Dallas and Houston area cities we serve due to the large
calling scopes, large variances in customer usage, available technology due to
recent growth in these areas, and indications that there is a market for the
service. The service would be expanded to other locations as technology
allows and the market emerges. Under the proposal, customers would be offered
access to the local and long-distance network and could receive unlimited
in-coming calls for a lower monthly access fee. Additional charges would be
based on usage of the local network to make local calls.
We believe such a service would allow customers to better control the amount
of their monthly telephone bill because their total monthly bill would be
based on how much they use the service. For those who need telephone service
for security purposes and those who do not use the phone very much, this
service would make it possible for them to reduce and control their bill.
I hope this overview of our needs may answer some of your questions and
summarize for you why we so urgently need increased revenues.
A copy of our Statement of Intent to Change Rates and a summary of our
proposed adjustments are attached for your information. Copies of the revised
tariff sheets reflecting the adjustments have been filed with the Commission,
and are also available for public inspection at each of our Business Offices,
Phone Marts, and Local Service Offices.
If you have any questions, I hope you will contact your general manager,
Jo Anne Reed, at 214-495-3525, or me.
Yours truly,
(A°
E. L. "Buddy" Langley
President
Att
r
_ . v« y, TEXAS MUNICIPAL LEAGUE
4 ' 1020 Southwest Tower Austin, Texas 78701 (512) 478-6601
J
February 18 , 1983
•
TO: All Cities Served by General Telephone Company
RE: Rate .Increase
On February 11, 1983 , General Telephone filed an application for
a system-wide rate increase in the amount of $85.4 million per
annum.
A meeting of interested cities has been set for Friday,
February 25 , 1983 at 10:00 a.m. in the 7th floor Conference Room,
Southwest Tower (TML Building) , 7th and Brazos, Austin, Texas.
If at all possible some representative from your City should plan
to attend this meeting.
At the meeting there will be a discussion of action to be taken
in the pending case, status of the Company' s appeals to the
courts, status of the Company' s additional revenues from its toll
settlements case with Southwestern Bell and a financial report
from the last case.
A prehearing conference has been set at the P.U.C. for Friday,
February 25 , 1983 at 9 :00 a.m. Interventions must be filed by
Friday, February 22 , 1983 . You are encouraged to file separate _
interventions, even if tardy, to preserve your City' s particular
interests. To keep your options open, TML has filed a blanket
intervention for all its Member Cities. Please forward this
information to your governing body and all other interested
officials.
r
: GTE—From Page One• for second-rate service." — - __
The PUC lifted the $4 million from $7.90 to $11.90 for residential
• Langley said the General Tele-
penalty last year. customers and from $20.95 to $31.50
cease was prompted bji +^+•ti—*�' for business customers.
�p�y cgsrx nursed by re- phone_ said Its service Improved The optional measured service.
Dallas Times Herald February 1:duced long-distan service and goo• which is scheduled to begin in late
•errunent regulations. The fall In after the penalty was issued. but a 1983,would be available in the Dal-
earnings has threatened General poll conducted by one Texas mayor las suburbs of Plano, Irving, Car-
- ATE requests .' Telephones bond rating,he said. Indicated that only 15 of 99 city of• rollton, Garland. Grapevine, Azle.
«,:He blamed the national recession facials she contacted reported an!tn• Keller, Lewisville, Rowlett and
se -and competition from discount long- proveement In their telephone ser• Wylie.
$85 . 5 m 1111 o n distance service for slashing corn- vice since the PUC took its action.
party profits. Despite moves•to cut Because of the phone company's The basic monthly measured ser-
adminlstrative costs, the company's record, Jiaf;Boyle. legislative direr• vice would cost 310.15 for residen-
ts profits have "continued to slide." tor of the Texas Consumer Associ- tial service, with callers being billed
rate increase adrift. said his would oppose
at least 2.5 cents for the first minute
"We have made efforts to reduce the rate hike and the measure of a call and at least 1.5 ants for
and control costa. We have reduced vice requests. each additional minute. Discount
our work force by'over 700 equiv. "The (Texas) Consumer Assod• rates would apply attar it pat. on •
By RICHARD S. DUNHAM gent employed."he said."We have adon looks with great skepticism on weeknights and all day on
Austin Bureau just reached the point where we the tremendous increase being re- weekends • (,
could not reduce costs any more quested by General Telephone in "I think measured service would
AUSTIN — General Telephone Co: of the without a substantial effect on cus- light of their record of inadequate be far fairer in the long run because
Southwest Friday asked the Public Utility Com- tomer service. We had a choice of and poor service and poor mainte- people who use the service more
mission for an $85.5 million rate increase,a move either reducingmodernization or Hance in their service area."
gley.
that would boost residential phone bills in some raise rates and increase the revenue General Telephone serves 800,000 would pay more," said er who
Dallas suburbs by more than 24 percent and in ... As distasteful as raising rates is. , Texas customers.including residents "Phis would allow customers who
g use the telephone less to control
some areas by more than 50 percent. ve•prefer this rather than reducing of the Plano, Irving, Garland- Car- their costs."
The request. it granted by the utility corn- these programs which our ctrstaaeta
rollton.Lewisville. Those customers I
mission, would raise monthly residential rates in have told us they expect" would see their basic rates go from
Dallas suburbs served by the company by $4 a Last year. the PUC grunted GTE $18.85 to $20.85. Business service Langley said technological ad-
month. while business rates would increase by a $48.8 million rate Increase. The would go from$44.15 to$54.70. vances have (neared) the day when
$10.55. The monthly charge for Dallas-Fort company had requested a $110 mil- In Denton. the• rates would go home computers and video games
Worth area "extended metro service" would • lion rate hike. - operate over telephone company
jump from$30 to$35. . In 1980, the company became the
•
Commissioners set a preliminary hearing on first telephone utility In Texas his- lines. Heavy computer use of tele-
the request for Feb.25, tory to be assessed a multimillion- phone lines will cause measured ser•
• dollar penalty by the PUC for sub- . vice to
In Its rate increase request. General Tele- replace the current flat-rate
standard service• • telephone service, he redacted.
phone also sought to introduce "measured ser- At the time, public officials from P P •
vice" rates on an optional basis in the Dallas and across the state presented a litany of
Houston suburb it serves.
complaints against the company.
Measured service customers would pay are, One West Texas city attorney said
duced flat rate for the service, plus a charge for some emergency "911" calls to local '
the length and distance of every tali'A similar police didn't get through to the po- _
request made last year by Southwestern Bell was lice department. One mayor said
• rejected by the PUC. • phones rang Intermittently despite
The overall rate boost would increase GTE the fact that no one was calling.The
general revenues by 15 percent, said company trving •city attorney complained of
president E.L."Buddy"Langley. . , being charged "excessive rates ...
See GTE ea Page 24