Minutes August 29, 1989CITY COUNCIL MINUTES
August 29, 1989
125
The Council convened into the Work 'Session at 5:30 p.m. in the Civil
Defense Room.
PRESENT: Mayor Stephens, Mayor Pro Tem Ayer, Council
Alexander, Boyd, Gorton, Hopkins and McAdams.
ABSENT: None
1. PRESENTATION
Members
Mayor Pro Tem Ayer presented a Certificate of Appreciation to
Mayor Stephens as he begins his new term on the TMPA Board.
2. BUDGET WORKSHOP AND PRESENTATIONS
Lloyd Harrell, City Manager, presented a brief overview of what
the budget schedule held for the coming evening and the coming
weeks.
Bob Nelson, Executive Director of Utilities, briefly explained
that the proposed budget contained a 1.6% decrease in electric
rates overall which would result in an ~887,491 decrease in
electric revenues. The budget also contained an 8.27% increase
in water/wastewater rates overall.
Suhas Patwardhan, Consultant with C.H. Gurusey & Company,
explained the process followed in developing the cost of service
plan and the rate designs. The rates were designed so that each
user paid for the cost of the services he or she used. The net
effect of the changes in rates was a 1.6% rate decrease.
Dipa Dutia, Financial Analyst, provided a comparison of Denton's
rates to the rates of other cities in Texas.
Council Member Boyd expressed an interest in keeping the
Dawn-to-Dusk rates at the current $6.20 rate rather than
increasing the rate to $7.50 because the $1.30 per month
increase could cause some people to discontinue their security
lighting service with the City. Some discussion followed with
the general consensus of the Council being to leave the rates as
proposed.
Bob Nelson briefly explained that the water/wastewater rates
were going to have a net increase of 8.27% with increases of 40%
and 30% for restaurant/equipment service rates and larger
industry pretreatment rates, respectively.
Rachel Reese, Consultant with Texas Water Company, explained the
process followed in developing the water/wastewater rates so
that each customer paid for the cost of the services used.
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City Council Meeting
August 29, 1989
Page 2
Howard Martin, Environmental Servlces Administrator, explained
the increase in eating places,, equipment service operations and
large industry pretreatment wastewater rates. Mr. Martin
explained that the wastewater from these customers required more
treatment than the wastewater from other customers because of
suspended solids and biochemical oxygen demands.
Council Member McAdams asked if the rates differentiated between
types of restaurants.
Bob Nelson explained that the waste from each was very similar.
Mr. Nelson also assured the Council that the Utility Department
would hold some discussion with the Restaurant Association about
the proposed changes.
7:32 p.m. - the Council adjourned for a break.
7:44 p.m. - the Council reconvened.
Bob Nelson began with the budget presentation for Utilities with a
look at the overall budget for Utilities.
Ernie Tullos, Director of Electric Utilities, presented the budget
for the City's Electric Utilities. The projections for' 1989-90
contained a 2.4% increase in sales and a 1.6% increase in peak use.
David Ham, Director of Water/Wastewater Utilities, presented the
budgets for the Water and Wastewater Utilities.
The City Council ad)ourned into Executive Session at 9:20 p.m. No
official action was taken.
With no further business, the meeting was adjourned.
ROGE~NEL S ON
DEPUTY CITY SECRETARY
CITY OF DENTON, TEXAS
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