21-001ORDINANCE NO.21-001
AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNICIPAL
CORPORATION, SUSPENDiNG THE JANUARY 23, 2021 EFFECTIVE DATE OF COSERV
GAS, LTD.’S REQUESTED RATE INCREASE TO PERMIT THE CITY TIME TO STUDY
THE REQUEST AND TO ESTABLISH REASONABLE RATES; APPROVING
COOPERATION WITH OTHER CITIES IN THE COSERV GAS, LTD. SERVICE AREA;
APPROVING THE HIRING OF LEGAL COUNSEL AND CONSULTANTS TO REPRESENT
CITY IN ALL MATTERS ASSOCIATED WITH COSERV GAS, LTD.’S APPLICATION TO
INCREASE RATES AND APPEALS THEREOF; AUTHORIZING INTERVENTION IN
DOCKET OS-20-00005136 AT THE RAILROAD COMMISSION; AUTHORIZING
REIMBURSEMENT OF CITY’S RATE CASE COSTS AND EXPENSES; FINDING THAT
THE MEETING AT WHICH THIS ORDiNANCE WAS PASSED WAS OPEN TO THE
PUBLIC AND THAT PUBLIC NOTICE WAS GrVEN AS REQUIRED; AUTHORIZING AND
REQUIRING ISSUANCE OF A COPY OF THIS ORDINANCE TO COSERV GAS, LTD. AND
LEGAL COUNSEL; AND PROVIDING AN EFFECTrvE DATE.
WHEREAS, on or about November 13, 2020, CoSew Gas, Ltd. (“CoServ”), pursuant to
Gas Utility Regulatory Act § 104.102, filed with the City of Denton, a Texas home-rule municipal
corporation (“City”), a Statement of Intent to increase gas rates in all municipalities exercising
original jurisdiction within CoServ’s service area, effective January 23, 202 1; and
WHEREAS, the City is a gas customer ofCoServ and a regulatory authority with exclusive
original jurisdiction over the rates and charges of CoServ within the City; and
WHEREAS, it is reasonable for the City to cooperate with other similarly situated cities in
conducting a review of CoServ’s application, to hire and direct legal counsel and consultants, to
prepare a common response, to negotiate with CoServ and to direct any necessary litigation; and
WHEREAS, the Gas Utility Regulatory Act § 104.107 grants local regulatory authorities
the right to suspend the effective date of proposed rate changes for ninety (90) days; and
WHEREAS, CoServ has filed an application with the Railroad Commission, Docket No.
OS-20-00005136 that could become the docket into which appeals of city action on the CoSew
ing are consolidated; an
WHEREAS, the Gas Utility Regulatory Act § 103.022 provides that costs incurred by cities
in ratemaking activities are to be reimbursed by the regulated utility; NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDArNS:
SECTION 1. The fIndings and recitations contained in the preamble of this Ordinance are
incorporated herein by reference.
SECTION 2. The January 23, 2021, effective date of the rate request submitted by CoSew
on or about November 13, 2020, is hereby suspended for the maximum period allowed by law to
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permit adequate time to review the proposed changes and to establish reasonable rates and the City
Manager, or his designee, is authorized to handle all administrative matters related thereto.
SECTION 3. The City Manager, or his designee, is authorized to cooperate with other
cities in the CoSew service area to hire and direct legal counsel and consultants, negotiate with
CoSew, make recommendations to the City regarding reasonable rates and direct any necessary
administrative proceedings or court litigation associated with an appeal of a rate ordinance and the
rate case filed with the City or Railroad Commission.
SECTION 4. Subject to the right to terminate the engagement at any time, the hiring of
Thomas Brocato of the law firm of Lloyd Gosselink Rochelle & Townsend, P.C., and consultants
to represent the City in all matters associated with the CoServ application to increase rates and
appeals thereof is hereby authorized.
SECTION 5. Intervention by City in Railroad Commission Docket No. OS-20-00005136
is hereby authorized.
SECTION 6. Reimbursement by CoSer\r of the City’s reasonable rate case costs and
expenses and receipt of such reimbursement by City or by legal counsel and consultants in payment
of services rendered to City in connection with the CoServ rate case is hereby authorized.
SECTION 7. It is hereby officially found and determined that the meeting at which this
Ordinance is passed is open to the public as required by law and that public notice of the time,
place, and purpose of said meeting was given as required.
SECTION 8. The City Manager, or his designee, is hereby authorized to and shall send
via email a copy of this Ordinance to CoServ, care of Charles Harrell, CoServ Gas, Ltd. 7701
South Stemmons Freeway, Corinth, Texas 76210(CHarmU@coserv.com), and to Thomas Brocato
at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas
78701 (tbrocato@lglawfirm.com).
SECTION 9. This Ordinance shall become effective immediately upon its passage and
approval.
The moW1 to approve this Ordinance was made by ---yes bC jaW iS and
seconded by Toy\r\ R\lbr\ , the Ordinance was passed and approved bythe following vote [L -
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Nay Abstain Absent
Gerard Hudspeth, Mayor:
Birdia Johnson. District 1 :
Connie Baker. District 2:
Jesse Davis. District 3:
John Ryan, District 4:
Deb AmHntor, At Large Place 5 :
Paul Meltzer, At Large Place 6:
PASSED AND APPROVED this the g tv\_day of 202 1
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ATTEST:
ROSA RIOS, CITY SECRETARY
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APPROVED AS TO LEGAL FORM:
BY:+==
AARON LEAL, CITY ATTORNEY
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