The Lampasas City Council on Monday voted unanimously to approve a change in Atmos Energy tariffs that will raise the average residential customer's natural gas rate by about 15 cents per month.

The tariff increase is part of a settlement between Atmos and Atmos Texas Municipalities, a group of about 50 cities served by the utility company. Atmos in March filed for a net rate increase of about $15 million, but the settlement to which Atmos agreed limits the increase to $2.6 million.

Along with higher rates, the settlement authorizes Atmos Energy Mid-Tex to institute a Conservation and Energy Efficiency program, which will provide senior citizens and low-income customers as much as $1,500 in caulking, weather-stripping and other materials intended to improve energy efficiency.

Atmos Energy shareholders will contribute $1 million annually to the program, as will ratepayers.

The new gas rates take effect Aug. 1.

In other business, the council voted 7-0 to purchase a new computer server from Dell for $6,987.

Ketrica Green, director of information systems, said the city's current server has not been functioning properly and is too old to support extensive backup or virus protection software. If that server failed, City Manager Michael Stoldt said, all city computers could lose Internet and e-mail service.

In another item, the council voted unanimously to award a bid of $135,023 to Smetana & Associates Construction of Temple for sewer system improvements as part of a 2008 Community Development Block Grant Sewer Project. Smetana & Associates' bid was more than $42,000 below the second lowest price submitted.

The council also awarded a Hackberry Street sidewalk bid of $24,032 to Patin Construction of Hutto. Patin will extend a six-footwide, handicapped-accessible sidewalk on the east side of Campbell Park from Hanna Springs Intermediate School to an existing sidewalk installed last year at Second and Hackberry streets.

In other business, the council voted unanimously to award a bid of $20,685 to Myers Concrete Construction of Wimberley for drainage improvements just east of Howe Street between Fifth and Sixth streets.

Two homeowners in the area requested improvements to prevent erosion on their properties.

The council also voted unanimously to buy 240 tons of cold mix asphalt from Alexander Trucking for $62 per ton. Alexander Trucking will deliver the material, to be used for street patching during summer paving work, to the city's public works facility.

In addition, Mayor Judy Hetherly read a proclamation in honor of Wanda Lesley and presented her with a crystal gift in honor of her 38 years of service on the Library Board.

During a workshop that preceded the regular meeting, T.J. Monroe, chairman of the Vision Downtown Lampasas! Economic Restructur- ing and Housing Committee, presented VDL's land use recommendations.

Suggestions include expanding the Central Business District, creating a Master Streetscape Plan to prioritize public improvements in the VDL area and promoting a mix of retail and housing uses.

Mrs. Monroe also recommended lowering speed limits or installing medians or landscaping features to slow traffic, developing a "green zone belt" to connect W.M. Brook Park and Campbell Park and promoting street-level retail use when possible instead of using first-floor space for offices.

Councilman Evan Stubbs expressed concern that overly strict limits on first-floor offices could keep vacant downtown buildings from being sold. "That's the first step to killing downtown," he said.

Mrs. Monroe said VDL does not advocate denying potential property owners the ability to use downtown buildings for purposes other than retail. Volunteers do hope to increase small business activity substantially, though, Mrs. Monroe said, as only 8 percent of properties within VDL boundaries -- where 35 percent of land is zoned for retail -- are being used for retail purposes.

Cultivating a mix of downtown land uses and attracting restaurants and entertainment venues to the area are essential to the revitalization of Lampasas, VDL board president Maryann Severn said.

"When we create downtown Lampasas as a destination point of beauty, of culture, everybody benefits," Mrs. Severn said.

After addressing regular agenda items, the council met in executive session for about 45 minutes. The council then unanimously approved an addendum to an Oct. 31, 2001, Economic Development Agreement with Windsor Foods as part of an option for the company to purchase electricity, through the city of Lampasas, on the open market.