R-3796-1-21 RESOLUTION NO.3796-1-21(R)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, SUSPENDING THE JANUARY 23, 2021, EFFECTIVE DATE OF
COSERV GAS,LTD.'S,REQUESTED INCREASE TO PERMIT THE CITY TIME TO
STUDY THE REQUEST AND TO ESTABLISH REASONABLE RATES;
APPROVING COOPERATION WITH OTHER CITIES IN THE COSERV GAS,LTD.,
SERVICE AREA; HIRING LEGAL AND CONSULTING SERVICES TO
NEGOTIATE WITH THE COMPANY AND DIRECT ANY NECESSARY
LITIGATION AND APPEALS; AUTHORIZING INTERVENTION IN DOCKET
OS-20-00005136 AT THE RAILROAD COMMISSION; REQUIRING
REIMBURSEMENT OF CITIES' RATE CASE EXPENSES; FINDING THAT THE
MEETING AT WHICH THIS RESOLUTION IS PASSED IS OPEN TO THE PUBLIC
AS REQUIRED BY LAW; REQUIRING NOTICE OF THIS RESOLUTION TO THE
COMPANY AND LEGAL COUNSEL; AND PROVIDING AND EFFECTIVE DATE.
WHEREAS, on or about November 13, 2020, CoSery Gas, Ltd. ("CoServ" or"Company"), pursuant to Gas
Utility Regulatory Act§ 104.102,filed with the City of Allen("City")a Statement of Intent to change gas rates
in all municipalities exercising original jurisdiction within the Company's service area effective January 23,
2021; and,
WHEREAS,the City is a gas customer of CoSery and a regulatory authority with exclusive original jurisdiction
over the rates and charges of CoSery within the City; and,
WHEREAS,it is reasonable for the City of Allen to cooperate with other similarly situated cities in conducting
a review of the Company's application and to hire and direct legal counsel and consultants and to prepare a
common response and to negotiate with the Company and direct any necessary litigation; and,
WHEREAS,the Gas Utility Regulatory Act § 104.107 grants local regulatory authorities the right to suspend
the effective date of proposed rate changes for ninety(90)days; and,
WHEREAS,CoSery has filed an application with the Railroad Commission,Docket No.OS-20-00005136 that
could become the docket into which appeals of city action on the CoSery filing are consolidated; and,
WHEREAS, the Gas Utility Regulatory Act § 103.022 provides that costs incurred by Cities in ratemaking
activities are to be reimbursed by the regulated utility.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY,TEXAS,THAT:
SECTION 1. The January 23, 2021, effective date of the rate request submitted by CoSery on or about
November 13,2020,be suspended for the maximum period allowed by law to permit adequate time to review
the proposed changes and to establish reasonable rates.
SECTION 2. The City is authorized to cooperate with other cities in the CoSery service area to hire and
direct legal counsel and consultants,negotiate with the Company,make recommendations to the City regarding
reasonable rates and to direct any necessary administrative proceedings or court litigation associated with an
appeal of a rate ordinance and the rate case filed with the City or Railroad Commission.
SECTION 3. Subject to the right to terminate employment at any time, the City of Allen hereby authorizes
the hiring of Thomas Brocato of the law firm of Lloyd Gosselink Rochelle&Townsend,P.C.,and consultants
to represent the City in all matters associated with the TGS application to increase rates and appeals thereof.
SECTION 4. Intervention in Railroad Commission Docket No. OS-20-00005136 is authorized.
SECTION 5. The City's reasonable rate case expenses shall be reimbursed by CoServ.
SECTION 6. It is hereby officially found and determined that the meeting at which this Resolution is passed
is open to the public as required by law and the public notice of the time,place, and purpose of said meeting
was given as required.
SECTION 7. A copy of this Resolution shall be sent to CoServ, care of Charles Harrell, CoSery Gas, Ltd.,
7701 South Stemmons Freeway, Corinth, Texas 76210 (CHarrell@coserv.com), and to Thomas Brocato at
Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701
(tbrocato@lglawfirm.com).
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY,TEXAS ON THIS THE 12'DAY OF JANUARY 2021.
APPROVED:
K neth M.Fulk,MAYOR
ATTEST:
Shelley B.B George,'1'RMC>CITY SE RETARY
Resolution No.3796-1-21(R),Page 2