City to fight gas utility rate hike
Lampasas joins other municipalities to oppose Atmos request
By DAVID LOWE Staff Writer

The Lampasas City Council on Monday voted to join other area municipalities in fighting gas utility rate increases proposed by Atmos Energy Corp.'s Mid-Tex Division.

Council members voted 7-0 in favor of an ordinance denying the company's proposed $51.9 million annual rate increase. Given authority under the Gas Utility Regulatory Act, the city has exclusive jurisdiction over Atmos' rates, operations and services as a gas utility within Lampasas.

The ordinance states the requested rate increases would result mostly from raising customer charges and lowering fees for gas consumption. This would place a disproportionate share of the increase on low-use consumers, the ordinance states.

Atmos officials have said the average residential consumer would pay an additional $1.57 per month, while small commercial customers could face average rate increases of $9.21 per month. A profit guarantee could push bills even higher for small consumers. This mechanism provides a disincentive to reduce costs, according to the city ordinance, and could decrease the efficiency of Atmos' utility service.

Atmos is seeking to increase rates for many of the cost items the Railroad Commission of Texas rejected in a case concluded Aug. 14, the ordinance adds.

The City Council's vote authorizes participation with several other Central Texas cities in Atmos Texas Municipalities, a coalition formed to resist the utility company's requested rate increase. Lampasas will employ Jim Boyle and Alfred Herrera as special counsel to represent the city before local and state regulatory authorities and in court.

Section 7 of the ordinance requires Atmos to reimburse the city of Lampasas "for the reasonable costs of attorneys and consultants," based on invoices reviewed by the Atmos Texas Municipalities Steering Committee.

In other business Monday, the council voted 6-0 to accept a $358,695 bid from Bell Contractors Inc. of Belton for a sewer capital improvements program. Mayor Pro Tem John Cole abstained from the vote.

To fund the program, the city will delay repainting of the water tower on Farm-to-Market Road 580 West, adding the project back into the budget with a later amendment.

"I think we are in strong financial position to be able to take on this project," City Manager Michael Stoldt said of the sewer improvement program.

In a 7-0 vote, the council awarded a $7,195 quote to San Antonio-based Imperial Tank for a 1,500-gallon water tank to be mounted on a city truck for the Street Department.

"We're way under the budgeted amount," Public Works Director Randy Clark said.

The City Council also unanimously dedicated a 4.3-acre tract in the Lampasas Sports Park as a "wetlands area." The designation fulfills a responsibility the city incurred when it received a $400,000 matching grant from the Texas Parks and Wildlife Department.

Along with maintaining water quality, parks officials will enforce a 50-foot no-mowing buffer around the wetlands and observe other state environmental requirements.

The council also unanimously approved police escorts for the Nov. 17 Celebrate Life 5K Fun Run and Walk, and for the annual Tri-County Toy Run, set Dec. 2.

In other matters, Caroline Salazar asked city officials to address flooding problems near her home on East Avenue I.

"My house is just getting ruined each time it rains in the summer," the resident said.

Ms. Salazar also said rain carries shingles and other scrap material from FM 580 East to her home.

The Police Department has filed charges for city code violations against the property owner who keeps the materials, Clark explained, and Texas Commission on Environmental Quality officials have come to investigate the property, which sits behind Phoenix Carved Stone.

Stoldt said he would try to address the flooding problems around Ms. Salazar's home.

In addition, the City Council unanimously approved the Lampasas Public Library's Long Range Plan for 2008-2012. The council will review annually the library's progress on seven goals and related objectives included in the plan.

The council rescheduled its next meeting to Nov. 13 at 7 p.m. because of the Veterans Day holiday.

The City Council will meet Monday at 5 p.m. to award a bid for Hancock Park Golf Course repairs.