An electric cost of service and rate study conducted by GDS Associates Inc. that has been approximately a year in the making has debunked allegations that the City of Livingston has been overcharging its residential customers for electricity.
James Striedel and Nick Weaver with GDS Associates Inc. presented their findings during a June 5 special called meeting and made recommendations on retail electric rates for the city to utilize going forward. Council took no action at the time, wanting to further review the results of the study.
GDS Associates Inc. is a multi-service consulting and engineering firm that was formed in 1986 and employs a staff of more than 175 in seven locations across the U.S. Its range of expertise includes electric, gas, water and wastewater utilities. Striedel holds a bachelor of science degree in electrical engineering from Texas A&M University and an MBA in finance and accounting from The University of Texas at Austin.
“Bill (City Manager Billy S. Wiggins) and his team have done a great job of working with us. I’ll tell you right up front, you line up very well. Overall, the current rates are very, very close to current costs. Residential is a little under collected and commercial is a little over,” Striedel said during the June 5 meeting.
A review of the rate study, as well as possible action, was on the agenda for the city’s July 15 meeting.
“Since June 5, I’ve updated the benchmarks and there’s roughly a $20 difference from SHECo, so you’re very competitive. Basically, your current bill is at the market value,” Striedel said. “The key message that I see is that the system is well-run and cost-effective, particularly when you compare it to the benchmarks of other competitors. And the power supply – from Sam Rayburn Municipal Power Agency – is also very cost-effective.”
A look at the benchmarks revealed that the city’s current residential electric rate for 1,000 KWhs – including customer charge, base usage charge and power cost – is $127.50. The city’s proposed rate for the same would be $127.46. An identical comparison shows that Sam Houston Electric Cooperative’s rate – comparing apples to apples – is $147.15; Entergy Texas, which services Corrigan and Cleveland, would be $138.67 and Gexia’s would be $128.39.
Ultimately, Council approved the recommendation that will keep the residential the same and slightly decrease the commercial, effective Oct. 1, the first day of the new fiscal year. Following the decision, an ordinance amending Article II of Chapter 40 of the Code of Ordinances was approved.
The difference between the city’s current rate and the new rate is that moving forward, the city will be splitting out the base cost and power cost. This will provide the city flexibility to make adjustments monthly instead of annually.
Representing the Livingston Golf Association, Cecil Langston and Todd Gardner addressed Council during the June 10 meeting, to report they have received substantial financial commitments from the Livingston Lions Club, the Alabama-Coushatta Tribe of Texas and the Smith Family Foundation for improvement projects to the Livingston Municipal Golf Course. These include installing a seven-foot wide concrete cart path, the reworking of five sand traps, addressing some drainage issues, redoing the putting green and reforestation to replace trees that were lost during severe flooding last year.
Though no city funds will be expended on the projects, because the golf course is owned by the city, everything must go through the city, meaning the city was responsible for seeking requests for proposals. A resolution creating a separate fund for donations received for golf course improvement projects was approved by Council during the June 10 meeting.
Having received four bids for the Livingston Municipal Golf Course cart path project, three of which were extremely close, Council approved awarding the contract to Nelson & Nelson who submitted the lowest bid of $229,381. Through a city-approved lease, Dustin and Kim Lowery have operated the golf course since August.
The city is now eligible to start the bid process for a Community Development Block Grant-General Land Office Mitigation Method of Distribution for Grant No. 24-065-040-E532. Funding from the grant will pay for street improvements on Willis and West Streets, including concrete streets with curbs and gutters.
The downtown drainage improvement project, also often referred to as the Highline/LifeVine project, is now complete and has been inspected by the city’s engineer and public works department and deemed completed correctly, giving Council the greenlight to approve the final payment to 5-T Utilities, thus establishing the beginning of the warranty period.
Council approved the appointment of Troy McKinney to serve as municipal court judge for the unexpired two-year term through May 31, 2027 following the resignation of Darrell Greer. Greer was appointed at the May 13 meeting but subsequently resigned following an attorney general’s opinion stating that Greer is disqualified from serving in the position because he is a prosecutor.
Dr. Elias T. Kanaan, who has served as the city’s local health authority since 2005, was reappointed for the 2025-2027 term.
Council reviewed a proposal received for an auditor for the annual financial report for fiscal year ending Sept. 30, 2025 and approved authorization to execute an engagement letter for employment of Carr Riggs & Ingram, the firm that bought out Axley & Rode, to serve as auditor for fiscal year Oct. 1, 2024 through Sept. 30, 2025.
Order of a General Election for Nov. 4 to elect three council members was reviewed. The three seats that will be filled are those presently held by Aldermen Dr. Raymond Luna, Elgin Davis and Bobby Jackson Sr. As of press time, all three incumbents had picked up packets to file for candidacy. The first day to file for a place on the ballot was July 19 and the last day to file is Aug. 18. Packets are available for pickup at City Hall located at 200 W. Church St.
Wiggins presented his monthly update on projects and events, reporting that the July sales tax report from the state comptroller for the month of May 2025 reflects $505,835.68, an increase of 0.69% from May 2024.
Wiggins offered his prayers for friends in the Hill Country and reported that he has been in contact with the Texas Division of Emergency Management regarding providing supplies or work crews. Though he learned none were needed at this time, the city was put on a list for future needs.
Although Council entered into an executive session to consult with the city attorney on legal matters and to conduct a performance evaluation of the city manager, no action was taken upon return to open session.
Other business included approval of accounts over $2,500 and the minutes of the June 5 and June 10 meetings.
