Min CC 10/04/1972 i
CITY OF CIBOLO
CITY COUINTCIL MEETING
OCTOBER 4,1972,
The meeting was called to order at 8:00 P. M. by Mayor Schlather
with all members present except Alderman Lieck.
The meeting was devoted to a discussion of whether or not to
grant a franchise to GVIC. Mr. Doyle Hines, GVEC Manager, and','""
Bob Brashard, Attorney for GVEC, presented to the City Council
and Mr. Floyd Westerman, the City' s financial advisor, their
reasons for desiring a franchise. Along discussion ensued con-
cerning the advantages and disadvantages of granting a franchises
Mr. Hines stated that the franchise- would provide, the following
advantages to GVEC .
1. Provide a written agreement setting forth operating
proceedures between the City and GVEC .,
2. Allow GVEC to plan more comprehensively for future
development and plant, expansion.
3. Assist GVEC in obtaining the best interest rate on
their bonds .
GVEC stated that the franchise would provide the following ad-
vantages to the City.
l. . It will provide a formal written agreement covering
the relation of the City and GVEC .
2. Provide free lighting of streets and other public-
areas for the existing City.
Mr. Westerman pointed out that the electric utility could pro-
vide a sizeable income for the City thus improving the City' s
bonding ability and improve the interest rate obtained on City
bonds . However, it was conceded by all that it �•ras not feas-
ible now or in the immediate future for the City t.o own and
operate its own electric utility.
Mayor Schlather requested that GVEC make a study to deter-
mine how much of the gross electric receipts obtained with-
in the City could be rebated to the City since it is obviously
cheaper to serve a densely populated area than a sparsely pop-
ulated rural area. Mr. Hines agreed to make such a study
and bring the results back to the council. He request-
ed that the council make a decision after his next sub-
mittal.
The council adjourned the meeting at 11:45 P. M.
F. 8. chlather Mayor
C� r
Edward Ling City retard'