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<br />• <br />Representatives of the cities present subsequently decided <br />to hire the firm of Touche Ross & Co. to work as the cities' rate <br />consultants. Don Butler and Grace Hopkins Casstevens of Austin, <br />Galen Sparks, Assistant City Attorney of Dallas, Harvey Carill, <br />City Attorney of Abilene, Dorothy Harwood, Assistant City <br />Attorney of Fort Worth, and other city attorneys who can <br />volunteer will act as attorneys. <br />The city representatives also heard a status report on <br />lawsuits involving Southwestern Bell rates. Over the past two <br />years the Cities and Attorney General's office have been involved <br />in extensive litigation brought by the company through appeals of <br />its 1980 a.nd 1981 rate cases. Favorable decisions have been <br />obtained by the Attorney General and Cities in almost every <br />instance.. 6Vith the approval of the city representatives present, <br />this litigation has been concluded through a favorable <br />settlement. Enclosed herewith find a summary of the various <br />issues involved in this litigation and their disposal which, <br />basically, calls for the company to drop its appeals in return <br />for the concession of one issue by the ratepayers. <br />The Attorney General's office has also been very cooperative <br />with city representatives regarding possible revisions to the <br />AT&T divestiture. However, we cannot be optimistic about the <br />results from the ratepayer's standpoint. <br />In order to present an effective rate case, it will be <br />necessary to have the financial support of all cities served by <br />Southwestern Bell. It is the request of the Steering Committee <br />that each such city pay 3.5~ per capita (based on 1980 population <br />figures) to defray the cost of the case. It was possible to <br />leave the assessment at the same rate as the 1981 case because of <br />the reserve left over from prior cases. Any excess collections <br />will be refunded upon the final determination of the case or held <br />as a reserve for the next case. See the attached summary of <br />costs from the 1981 rate case and litigation involving the 1980 <br />and 1981 cases. <br />If there are any questions regarding the case, please do not <br />hesitate to contact Don Butler or Grace Casstevens at <br />512/476-6604. <br />Enclosed is an authorization for your city's participation <br />in the case. Please return (with your check payable to <br />TML-SOUTHWESTERN BELL RATE CASE TRUST FUND) as soon as possible <br />so that your city can be a part of this vital effort. <br />Please foreward this information to your city councils and <br />all interested officials of your city. <br />• <br />u <br />• <br />C.~i <br />