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Home My WebLink AboutO-1977-1063 ;.. ':. . . ..... , e e ORDINANCE NO. 1063 _. AN ORDINANCE AUTHORIZING THE HIRING OF THE LAW FIRM OF LEONARD, KOEHN, ROSE & WEBB; INCORPORATING THE LETTER AGREEMENT BETWEEN THAT FIRM AND THE CITY OF LA PORTE FOR THE PURPOSES AND AT THE TERMS STATED THEREIN; ESTABLISHING A POLICY FOR ANY PRIVATELY- OWNED UTILITY FOR PAYMENT TO THE CITY AND/OR TO PERSONNEL HIRED BY THE CITY UNDER SECTION 24 OF' THE TEXAS PUBLIC UTILITY REGULATORY ACT; AND MAKING CERTAIN FINDINGS OF FACT; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LA PORTE: Section 1. Pursuant to the "Statement of Intent to Change Rates" filed with the City by Entex, Inc., a privately-owned public utility, for an increase in gas rates and other considerations (the "Entex Matter") and Pursuant to Article l446(c), V.A.T.S., the "Public Utility Regulatory Act", the City Commission of the city of La Porte, acting on its own motion, finds it necessary to employ outside attorneys to handle the Entex Matter on behalf of the City. Section 2. Pursuant to the agreement between the City Commission of the City of La Porte and the law firm of Leonard, Koehn, Rose & Webb, which ~greement is attached hereto and made a part of this ordinance for all purposes stated herein and in that letter agreement, the Mayor and City Clerk are authorized to execute this agreement on behalf of the City Commission. Section 3. Pursuant to Article l446(c), Sections 23 and 24, the City Commission of the City of La Porte is obligated to make a reasonable determination of rate base, expenses, investment and rate of return within the municipal boundaries in order to regulate its public utilities. T.o do so, the City Commission of the City of La Porte must hire outside rate experts pursuant to Section 24 of Article l446(c). The City Commission of the City of La Porte finds that it does not have budget funds in its current budget adopted October 1, 1976, to provide for payment of such outside experts before being reimbursed by the public utility as provided in Section 24 of Article l446(c), V.A.T.S. Therefore, the City .t,. e e . Commission of the City of La Porte will hereby require any public utility, upon receipt of the statement of the City and/or of the outside experts to reimburse the City for its debt to such outside experts or to pay them directly. Section 4. The City Commission of the City of La Porte has reviewed the letter agreement made a part hereof and finds that the fees and expense charges proposed in that letter agreement are reasonable under Section 24, Article l446(c), V.A.T.S., based on the nature of the work to be done and the skill and expertise required. Section 5. This Ordinance shall be effective immediately . upon its passage and approval. PASSED AND APPROVED, this 22nd day of February, 1977. CITY OF LA PORTE ......:::::.., ~. ~ ~ J. J. Meza, Mayor ~> By ATTEST: - " ~~ Cloty c: rk . w! . -2- .- '.' . . . l.EONARD, KOEHN, ROSE Be WEBB A PROFESSIONAL CORPORATION ATTORNEYS AND COUNSELLORS SUITE 'OS 11330 WEST LOOP SOUTH HOUSTON, TEXAS 77401 (7'31 ee,-uss SUITE "" 2001 BRYAN TOWER DALLAS, TEXAS 75201 (2141 85'.'031 February 22, 1977 SUITE '408 CAPITAL N"TIONAL BANK BUILDING "U5TIN, TEXAS 78701 (B121 478-0237 DAVID F. WEBB The Honorable Mayor J. J. Meza and the Honorable City Commissioners P. O. Box 1115 La Porte, Texas 77571 Dear Mayor and Commissioners: Through your representatives, we have discussed acting as attorneys for the City of La Porte City Commission, sitting as the regulatory authority regarding a rate investigation, hearings and possible appeals and litigation regarding the December, 1976 application of Entex, Inc. (hereinafter referred to as "Entex Matter") for an increase in their gas rates and for a fuel clause or a cost-of-service adjustment clause. We now desire to set forth in writing our proposed services and the basis for our compensation. We will, as requested, advise and represent the City of La Porte (hereinafter referred to, as "City") with respect to the rate investigation and hearings which the City may hold regarding the Entex Matter. We will further represent the City with regard to selecting and engaging, negotiating with, consulting with and supervising any rate consultants, accountants, auditors, engineers, or any combination thereof, and/or any such utility rate case experts which the City may wish to hire under the provisions of Section 24, Article l446(c) (Vernon's Annotated Texas Statutes) of the Public Utility Regulatory Act of 1975 of the State of Texas, or such similar experts which the City may wish. to hire independent of said Statute. We will further represent the City with regard to any appeal and/or litigation resulting from the action or inaction of the City Council as regulatory authority on the Entex Matter, inCluding but not limited to, appeals to the Railroad Commission of Texas, the Public utility Commission of Texas, any state or federal district court, any Texas Court of Civil Appeals or United States Court of Appeals, . . . " e . City of La Porte Page Two February 22, 1977 and/or to the Supreme Court of Texas or the Supreme Court of the united States. Our services in these forums, if necessary, will include preparation of rate, legal and/or litigation documents, pleadings and briefs, and appearances, on behalf of the City before the City Commission, before the named Commissions, and before the named Courts, and preparation and negotiation of any agreements which may be made by the City regarding the Entex Matter. Our services will further include answering specific questions of a legal nature which may, from time-to-time, arise and be referred to us by your City in connection with the above- described matters. It is contemplated that this law firm will be representing other cities on similar matters, particularly the Entex Matter. If we do so, we agree with the City to prorate those expenses and charges for our services which are of joint and/or general benefit to the cities. The proration of our expenses and fees will be on the basis of the total number of gas customers in all cities, apportioned to each city by its percentage of gas customers compared to total gas customers of all cities. The number of gas customers will be determined from the current rate application filed by Entex, Inc. with each city. In return for and in consideration for such services described above, our fees will be on a time charge basis for which records will be kept by our law firm. The time charge basis for services will be $100 per hour for time devoted to the above-described services by any partner of this law firm; $75 for any associate attorney; $60 for any legal assistant with utility experience, and $35 for any other legal assistant. Actual expenses incurred by us for your account, will be reimbursed by the City and are not to be considered as a part of our compensation. Such expenses will be billed at regular intervals for payment, and will include but not be limited to personal or law firm auto expenses at $.25 per mile, car rental expenses if necessary, filing fees, travel and lodging expenses, and any other necessary and reasonable disbursements on behalf of the City. Our compensation shall be due and payable upon receipt of our statement when billed to the City. It is our understanding that under the City's budget situation, the only way the City can fulfill its obligations under Section 23 is to bill Entex directly upon receipt of our monthly bills, and for those bills to be paid either to the City, reimbursing the City for the debt owed to us, or directly to us by Entex. . . . .., e e :;. City of La Porte Page Three February 22, 1977 Pursuant to this agreement, this firm will require regular monthly payments from the City and/or Entex, due upon City's receipt of our monthly bill. It is our joint expectation and understanding of the law that the City will be reimbursed on the Entex Matter by Entex, Inc. under Section 24 of the Public Utility Regulatory Act of Texas. However, if any court, upon exhaustion of final appeals, should adjudge the fees owed by Entex, Inc. for our attorney services to be less than those fees paid and/or due us by the City, we agree to make a deduction and/or refund of the amount due and/or paid us by the City. If Section 24 of the Public Utility Regulatory Act of Texas should be repealed by statute, adjudged upon exhaustion of all appeals to be unconstitutional, or otherwise declared invalid upon exhaustion of all appeals, the City will remain obligated for our services rendered as agreed in this letter agreement. This agreement may be terminated either by you or by us at any time, in which event, of course, we expect to be paid any compensation earned to the date of such termination and to be reimbursed for any expenses which may have been incurred to that time. A place is provided below for the acceptance and acknowledgment by the appropriate City official or officials, and if you so agree, we ask that the appropriate executions be accomplished, and a signed duplicate original be returned to us. We look forward to the opportunity to serve you and your City on this very important matter. <i?~22rJd? For the Firm cc: Mr. Knox Askins, City Attorney Mr. Larry Broussard, Director of Finance The foregoing is hereby accepted City of La Porte by the undersigned, who to do so. behalf of the duly authorized Mayor, City of La Porte, Texas