Saturday's Internet Edition, May 17, 2008.
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The Agenda item stated the Council would meet in closed Executive Session as authorized by the listed section(s) of the Open Meeting Act to discuss matters with LCRA Wholesale Power Contract Amendment regarding competitive electric matters.
Council’s action did not sit well with some area residents as complaints of excessive utility rates charged by the City of Lexington are being expressed. Joanie Burkett, a 12-year resident of Lexington, has organized a petition drive to try and get the City to lower its rates. She told the Leader this week that, although she now lives outside the city limits, she has three rental properties in the city limits and has had trouble renting them for the past couple of years.
“When I first moved here and bought rental property, I could put a sign up or advertise a piece of property for rent and I would have five or six people try to rent it within a week. Now, I can’t get anyone to rent my houses and potential renters are telling me it’s because they cannot afford the City’s deposit for utilities and the monthly bills for their electricity,” said Burkett.
Burkett’s petition is being primarily circulated at Peterson’s Family Foods, stating “As a Municipal Utility Provider, the City of Lexington is exempt from utility deregulation and the review and rate approval by the Texas Public Utility Commission. The current electric utility rates have been set at unreasonable levels.”
Burkett also stated, “Lexington electric utility [customers] are paying rates which are 15% to 25% higher than rates charged by Bluebonnet Electric Co-op. These rates are excessive and are creating a financial burden on the local economy.”
In November and December 2003, David Peterson, owner of Peterson’s Family Foods approached the Council concerning similar allegations. On at least three different occasions, Peterson provided comparison rate information with the City Council, showing the difference between Lexington’s utility rates and the City of Giddings’ utility rates. Peterson explained that the Giddings’ rates charged to a competing grocery store were 53% to almost 57% cheaper than Lexington’s charge to his store. He pleaded with the City to lower the utility rates, but his pleas fell on deaf ears.
Burkett asks in her petition for citizens to request “the Mayor and City Council to take immediate action to reduce these rates to [the same rate] charged by Bluebonnet Electric Co-Op.”
The City did respond to citizen outcry in May 2004. In a special session held May 20, 2004, the Council elected to lower utility deposits to $300 for both homeowners and renters. This followed the City’s action of raising utility deposits to $500 in October 2003.
However, some citizens complain that the $300 deposit is still too much. Burkett told the Leader that she was hoping to collect several hundred names on her petition and present the petition at the April 13, 2005 Council meeting. She said, “I want to encourage everyone in Lexington to attend this meeting. Whether you’re a business owner, a landlord, or a resident of the city, there is power in numbers and we can all benefit if the City hears our requests and lowers our electric bills.”
In other action taken by the City Council Monday, the Wallace Group, the City’s engineering firm, was instructed by the Council to re-negotiate the contract with Keys Enterprises. Keys is the contractor hired to implement the improvements to the City’s sewer system and recently submitted a second change order to the City. Keys sited antiquated city maps and unexpected geological impediments, such as rock, causing problems and work delays, while making the improvements. Keys stated that these problems could extend the expected May 15, 2005 completion date.
The Wallace Group is expected to appear before the Council on April 13 with a new contract from Keys, releasing the City from further changes.