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POLICY PROPOSAL
DATE FILE NUMBER SUBJECT PAGE-1-OF-1.
7/28/75 CP-1 Citizens' Utility Board
PROPOSAL PROPOSED BY: CITY MANAGER'S REVIkW
Mayor Clif Overcash
In light of the energy crisis and the dramatically spiralling increase in utility
rates, it is vital that the City of Fort Worth be even more diligent in reviewing
utility company activities and rates. Consumers in this city are concerned about
the threat of higher and higher rates for vital necessities they cannot do with-
out. This City Council must see to it that effective controls are exercised over
utility rates and that any increases are thoroughly reviewed and justified.
To aid in this review, I am proposing the creation of a Citizens' Utility Board
cona ed-of-seven-independent citizens empowered to work with the City's staff to
review any proposed rate increases an report their findings to the City Council.
This Board should include citizens with experience in accounting, finance and
engineering, as well as representatives of households, business and minorities.
No member of the committee should have any direct or indirect financial interest
whatsoever with the utility companies. Members of the Citizens' Utility Board
should be appointed by majority vote of the City Council and serve for two years.
The specific function of the Board is to:
a) Review all requests for utility rate adjustments;
b) Review the analyses and recommendations of the City staff;
c) Submit the Board's recommendation to the City Council.
Recommendation
It is proposed that an ordinance be adopted creating a Citizens' Utility Board,
as outlined above, to review any proposed utility rate increases and make
recommendations to the City Council.
Submitted By:
Mayor
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Legality
Section 16 of Chapter XXVIII of the Charter of the City of Fort Worth p V eSo1 &
follows: 41,
LEGALITY
FISCAL NOTE ® j
CITY MANAGER'S COMMENTS
POLICY PROPOSAL (cont'd) PAGE—OF
1' *he City Council may, at the request of the City Manager, or upon their own motion,
appoint boards or commissions to be composed of such number of citizens as the
Council may deem expedient to act in an advisory capacity in conjunction with any
one or more of the departments created or authorized hereby. The members of such
boards or commissions shall serve without compensation, and may be removed at any
time by a majority vote of the Council.
During the hearing of Gas Utilities Docket No. 588, the City Attorney and Judge Jim
Langdon of the Texas Railroad Commission discussed at length the manner in which
gas rate increase applications were handled at the local level. Judge Langdon
suggested that cities should hold hearings at which a court reporter was present
and all testimony and all exhibits were examined and cross examined. The City
Council should keep in mind that appeals from its action or inaction in gas rate
cases are to the Railroad Commission of Texas. We should be in a position whereby
we could show with a complete record of evidence that the City Council did not
act arbitrarily or capriciously.
Fiscal Note
While the members of the Board will serve without compensation, there undoubtedly
will be some expense involved in providing this Board facts and information upon
which they can base their recommendations. This will involve additional staff
time as well as printing and supply expense. It would be very difficult, however,
to estimate what this expense might total.
' City Manager's Comments
While the Citizens' Utility Board will impose some additional workload and minor
expenses, the staff will be happy to work with it in reviewing utility rate
adjustments.
It is felt that for the Board members and the staff to have a clear understanding
of the Board's responsibilities and prerogatives that guidelines be prepared
defining the Board's activities and procedures.
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