HomeMy WebLinkAboutPO 6513: HIRING OF LAWYERS, RAILROAD COMMISSION OF TEXAS P. O. No. 6.513 1/4/16 gt ORDINANCE NO. AN ORDINANCE OF THE CITY OF PORT ARTHUR, TEXAS AUTHORIZING THE HIRING OF LAWYERS AND RATE EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION TO THE FULL EXTENT PERMITTED BY LAW AT THE RAILROAD COMMISSION OF TEXAS; REQUIRING REIMBURSEMENT OF MUNICIPAL RATE CASE 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 • WHEREAS, on or about December 30, 2015 Texas Gas Service Company ("TGS" or "Company") filed a Statement of Intent with the City of Port Arthur ("City") to increase gas rates in the South Jefferson County Service Area by more than $3.2 million per year; and WHEREAS, City has exclusive original jurisdiction over the rates, operations and services of a gas utility in areas in the municipality pursuant to Tex. Util. Code §103.001; and WHEREAS, Gas Utility Regulatory Act § 103.021 requires a local regulatory authority to make a reasonable determination of rate base, expenses, investment and rate of return and retain the necessary personnel to determine reasonable rates; and WHEREAS, the City's reasonable cost for regulatory expenses in ratemaking proceedings shall be reimbursed by the gas utility under Gas Utility Regulatory Act § 103.022; and WHEREAS, given the complexity of the proposed rate increase and the need to fully review the proposed rate adjustment the City suspended the effective date for implementing the proposed rates until at least May 3, 2016 in order to allow the City's rate experts sufficient time to determine the merits of TGS' proposed rates; and WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing, analyzing, and investigating the Company's $3.2 million rate increase request, City's efforts will be coordinated with similarly situated municipalities in the Company's South Jefferson County Service Area; and WHEREAS, the City will join with other municipalities in a steering committee in order to coordinate the hiring and direction of counsel and consultants working on behalf of the steering committee and the City. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: Section 1. That the statement and findings set out in the preamble to this resolution are hereby in all things approved and adopted. Section 2. That the City is authorized to join with other municipalities as part of the South Jefferson County Service Area Steering Committee with the understanding that the steering committee will provide direction and guidance to the lawyers who are representing said cities. Section 3. That the City employs The Lawton Law Firm, P.C. to represent the City with regard to the proposed rate increase of TGS before local and state regulatory authorities and any court of law and authorizes counsel to employ such rate experts as are recommended by the Steering Committee. Section 4. That the Steering Committee, shall review the invoices of the lawyers and rate experts for reasonableness before submitting the invoices to TGS for reimbursement. Section 5. That City's legal representatives shall have the right to obtain additional information from TGS through the service of requests for information, which shall be responded to within seven (7) calendar days of receipt of such requests for information. Section 6. That TGS shall reimburse the City, through the designated representative of the Steering Committee, for the reasonable costs of attorneys and consultant fees and expenses related thereto, upon the presentation of invoices reviewed by the Steering Committee. Section 7. That the meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 8. That this resolution shall become effective from and after its passage. READ, ADOPTED AND APPROVED on this day of January A.D., 2016, at a Meeting of the City Council of the City of Port Arthur. Texas, by the following vote: AYES: Mayor: Councilmembers: NOES: Deloris "Bobbie"Prince, Mayor ATTEST: Sherri Bellard City Secretary APPROVED AS TO FORM: \iGk, Valecia R. Tizeo City Attorney APPROVED FOR ADMINISTRATION: Brian McDougal City Manager