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HomeMy WebLinkAbout1993-02-02 - Regular City CouncilMINUTES OF REGULAR MEETING City of Stephenville - City Council TUESDAY, FEBRUARY 2, 1993 - 7:00 P.M. The City Council of the City of Stephenville, Texas, con- vened in regular session on February 2, 1993, at 7:00 p.m., in the Council Chambers at City Hall, 354 N. Belknap, with the meeting being open to the public and notice of said meeting, giving the date, time, place and subject thereof, having been posted as prescribed by Article 6252 -17, Section 3A, V.T.C.S., with the following members present, to wit: Mayor: Lavinia Lohrmann Mayor Pro Tem: Scott Evans Councilmembers: Alan Nix Donald L. Zelman Sam Taylor II George Swearingen William F. (Bill) Johnson Dan Collins Bill Bailey Absent: None Others Attending: Don Davis, City Administrator Joyce Pemberton, City Secretary Randy Thomas, City Attorney I. CALL TO ORDER: Mayor Lavinia Lohrmann called the meeting to order and declared a quorum present. II. DISCUSS SINGLE - MEMBER DISTRICTS. Don Davis, City Administrator, explained that the letter from David Guinn, the attorney employed to assist with the singlemember district election, outli- nes the schedule that must be followed to put this issue on the May 1st ballot. Councilman Sam Taylor advised that a committee meeting has been scheduled for Wednesday, February 10, 1993, at 2:00 p.m. Hopefully, they can get a proposal to the Council by the March 1st meeting. A special meeting may be called, if necessary. No Action Was Taken. III. CALL GENERAL ELECTION AND APPOINT ELECTION JUDGES. This item was tabled until March meeting. - 9 - IV. COMMITTEE RECOMMENDATIONS FOR COUNCIL ACTION. A. Landfill Committee Mayor Lohrmann reported the Committee met and discussed the new cost figures associated with con- tinuing the landfill operation; the draft report on composting from Ron Jones; and a proposal from the engineering firm of Cook & Joyce, Inc. to begin work on a transfer station at the landfill. The Committee voted unanimously to recommend that these engineers be employed. Mr. Davis said the engineering firm will bring back three conceptual designs for Council consideration, along with cost estimates on all three designs and they estimate this can be done within a three week period. Councilman Scott Evans made the motion, seconded by Councilman Dan Collins, to employ the engineering firm of Cook and Joyce, Inc. to design our transfer station. The motion carried UNANIMOUSLY. B. Finance Committee 1. Water and Sewer Rate Increase Councilman Alan Nix, Chairman reported that in the Committee meeting of January 19th, the Committee unanimously voted to recommend appro- val, by ordinance, the proposed water, sewer, and tap fee rate changes and billing structures that are contained in the rate study, effective for the March 1st billing cycle. Searcy Willis, Jr., of Willis, Graves Associates, Inc., presented the rate study. Cecil Ford, J. O. Bachus, Don Moore, Vic Ashe, Harold Franke, Delphia Sharp, Bill Oxford, Ed King, Carla Trussell, Chris Hudgins, and Bee Bentley addressed the Council in opposition to the proposed rates, as they felt the rates were unfair to apartment and mobile home park owners. After lengthy discussion, Councilman Dan Collins made the motion, seconded by Councilman Sam Taylor, to defer action on this item until the special meeting on February 17th. After some more discussion, Councilmen Collins and Taylor amended their motion to include asking the consultant: 1) to provide us with some alternatives that accommodate some of these - 10 - issues, i.e., occupancy rate, possibly, con - sidering a different distribution across commer- cial customers. The motion carried by the following roll call vote: AYES: Councilmen Alan Nix, Sam Taylor, George Swearingen, Bill Johnson, Dan Collins, Bill Bailey and Lavinia Lohrmann. NOES: Councilmen Don Zelman and Scott Evans. 2. Liability and Property Insurance. Councilman Alan Nix also reported the Committee had voted unanimously to recommend the City's liability and property insurance be awarded to the TML Risk Pool. After some discussion, Councilman Sam Taylor made the motion, seconded by Councilman Bill Johnson, to approve the recommendation of the Finance Committee to continue the City's liabi- lity and property insurance coverage with Texas Municipal League's Risk Pool. The motion carried UNANIMOUSLY. Councilman Bill Johnson made the motion, seconded by Councilman Bill Bailey, to incor- porate the changes as discussed. The motion carried UNANIMOUSLY. C. Personnel Committee 1. Overtime Compensation For Fire Department Councilman Sam Taylor, Chairman, reported the Committee met on January 20, 1993, to discuss the 12 hour overtime pay per cycle in the Fire Department. Mr. Taylor advised the proposal will cost an additional $36,000 in the fiscal year 1992 -93, but it will help the Fire Department meet their responsibilities with a minimum of call -back hours and /or being short shifted by increasing their average shift staffing by one. This will require a budget amendment in the amount of $36,000. The Committee recommends approval. Councilman George Swearingen made the motion, seconded by Councilman Dan Collins, to approve the implementation of an additional 12 hours of overtime per individual per cycle in the Fire Department._ Also, authorize a budget amendment in the amount of $36,000 from the unappropriated reserves of the General Fund. The motion carried UNANIMOUSLY. - 11 - D. Planning & Development Committee 1. Tax Abatement Councilman Bill Johnson made the motion, seconded by Councilman Alan Nix, to approve the policy for allowing tax abatement (Ordinance # 1993 -03), with the addition of "equipment" in Section 2, Paragraph i; replace "Board of Trustees" with "City Council" in Section 3, Paragraph b; and Section 2, Paragraph h(2) replace "number of new jobs with "number of new full -time jobs ". The motion carried UNANIMOUSLY. Request From Tarleton State University for a Sidewalk Don Davis, City Administrator, explained that T.S.U. had made a request for the construction of a sidewalk. on Tarleton Street, west of Lillian. The estimated cost is $14,000 and the reason being that some drainage work and curt /gutter was needed in order to construct the sidewalk. There was no money budgeted for this project. Councilman Scott Evans made the motion to deny the request from T.S.U. for the City to construct a sidewalk, as recommended by the Committee. The motion was seconded by Councilman Bill Johnson. The motion carried UNANIMOUSLY. E. Water Planning Committee Councilman Scott Evans advised that AMPI had approached the City about connecting to the City's water and sewer system. The Committee instructed staff to proceed with the nego- tiations with AMPI and bring the contract back to the Committee. 2. Water Well Plugging Councilman Scott Evans reminded the Council that this is a carry over from last month. He said the Committee had met with the citizen objecting to the plugging of the wells and, after much discussion, is recommending to plug the seven (7) wells, as had been recommended. Councilman Alan .Nix made the motion to plug and seal seven (7) existing, abandoned water wells and award the bid to Geognosis Drilling & 12 - x i Exploration, Inc. from Abilene in the amount of $13,945.01. Seconded by Councilman Don Zelman. The motion carried UNANIMOUSLY. V. COMMITTEE REPORTS. A. Public Health & Safety Councilman Don Zelman, Chairman, reported the Committee met Tuesday, January 21, 1993. Councilman Zelman said the Committee met with Dr. Keith Madison, City Health Officer, who was con- cerned over the lack of regulatory authority with food handlers and food handling establishments. The Committee instructed the staff to meet with Dr. Madison and review the codes concerning the City's authority for inspecting and regulating these busi- nesses and determine what would be involved to institute an inspection program for restaurants. Recommendations to be brought back to the Committee. The Committee discussed the feasibility of a traf- fic device at the intersection of Frey and Dale Streets. Ronnie Slemmons with the SISD and Police Chief Wade explained why they felt this would not be feasible. The Committee determined that this type of traffic control device would not help the problem with the pedestrian crossing at this inter- section; therefore, the Committee decided against such a recommendation. The Committee discussed the need for an ordinance pertaining to parades, processions, and other street uses. Staff is to draft such an ordinance. Also, staff is to review fees or charges for these services, although, the Committee feels it is a good service to continue with free police escorts for funerals, but to terminate the escort at the city limits. No action necessary and no action taken. VI. REPORT ON TELEVISING CITY COUNCIL MEETINGS. Councilman Dan Collins explained that he had talked with the manager of Northland Cable Co. regarding the process and cost of televising the council meetings. He said he was told that the cable company had some old equipment, which he would be willing to let the City use, as an experiment to see if there is public response one way or the other. He said he would be willing to bring in the cable for nothing and let us borrow his equipment for, say six months, just to see - 13 - how it works. Also, he would be willing to help us. Councilman Collins said he had some informal agreements that volunteers would man the equipment. It will not be our problem for six months, then, we can see what we want to do in the future. Councilman Scott Evans made the motion accept Northland Cable Company's free trial offer. Seconded by Councilman Bill Bailey. The motion carried UNANIMOUSLY. VII. REQUEST TO CHANGE DATE OF SPECIAL MEETINGS. Councilman Alan Nix said that, due to conflicts with his schedule, he is requesting the Council change the special meetings day from Wednesday to Tuesday, effec- tive March, 1993. Councilman Sam Taylor made the motion to move the spe- cial meetings to the 3rd Tuesday of the month at 5:30 p.m. Seconded by Councilman Scott Evans. The motion carried UNANIMOUSLY. VIII. CONSENT AGENDA: A. APPROVAL OF MINUTES: January 5, 1993 B. BID CONSIDERATIONS 1. Bid Specifications a. Tractor with attached flair mower b. Annual Fuel Purchases C. Handicapped parking - removed because speci- fications are not available. d. Wastewater Treatment Plant Maintenance Bldg. 2. Award Bids a. Roofing of Library - award bid to Lydick /Hooks Roofing Co. in the amount of $9,785.00. C. Approval of Batting Cage Contract - removed D. Approval of Resolution Contracting with the State for a Feasibility Study on the Landfill. Councilman Scott Evans made the motion to approve the above items on the Consent Agenda, as presented, except B(3) and C. Councilman Alan Nix seconded the motion. The motion carried UNANIMOUSLY by a roll call vote. C. Batting Cage Contract. - 14 - RESOLUTION OF 1993 -02 THE CITY OF STEPHENVILLE TO ENTER INTO CONTRACT AGREEMENT WITH THE STATE OF TEXAS FOR FINANCE A FEASIBILITY STUDY FOR A REGIONAL MUNICIPAL SOLID WASTE COMPOSTING FACILITY WHEREAS, the City of Stephenville agrees to enter into a study of the feasibility for a regional municipal solid waste composting facility in conjunction with dairy cow manure, and WHEREAS, this study will examine the management of municipal solid waste as it relates to Senate Bill 1340 and the related costs, and WHEREAS, the study will review at least three solid waste management systems including, but limited to: 1. Integrated waste management strategy. a. Source reduction through the support of programs such as backyard composting and Don't Bag It. b. Curbside or drop -off recycling program that includes a community composting program strictly for source- separated organic materials (yard waste, food waste, animal manure, and /or sludge). C. Other materials such as mulching and land application programs for the beneficial use of organic materials such as mulching and land applications of organics. 2. A mixed municipal solid waste composting process. 3. A processing facility for commingled recyclables (material recovery facility). WHEREAS, the study will consider the environmental concerns of composting both mixed municipal solid waste and dairy cow manure, and WHEREAS, a report is to be presented to the Texas Water Commission giving a detail description of the process, equipment, marketing alternatives; and cost - benefit analysis, and WHEREAS, the City Council of the City of Stephenville agrees to enter into contract with the State of Texas for study as described above, with the understanding the Texas water Commission will contribute $30,000 for costs of said study. Adopted this 2nd day of February, 1993. Lavinia Lohrm n, Mayor ATTEST: Z>7oycell, /I%% Pemberton, City Secretary d�' Reviewed by Donald B. Davis, City Administrator Randy ma�s, C� y Attorney Approved as to form and legality ORDINANCE NO. 1993 -05 AN ORDINANCE ADOPTING WATER AND WASTEWATER RATES AND TAP FEES AND SETTING A WINTER MONTH'S BILLING STRUCTURE, PROVIDING A SURCHARGE DEFINITION AND A MULTIFAMILY BILLING STRUCTURE FOR THE CITY OF STEPHENVILLE AND PROVIDING FOR AN EFFECTIVE DATE THEREFOR. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS, as follows: SECTION 1. The rates for users of water on CITY OF STEPHENVILLE service shall be as follows: Minimum Bills (inc. 0 gal.) plus Volume Charge Water Rates Multifamily (per unit)_ $ 5.60 5/8" 7.43 3/4" 7.43 1 16.17 16" 34.09 2" Residential 59.17 2" Commercial 59.17 3" 130.85 4" and larger 231.21 Volume Charge Per 1,000 gallons 1.47 Residential Surcharge - Over 12,000 .50 (June - September) SECTION 2. The rates for users of wastewater service in the CITY OF STEPHENVILLE shall be as follows: Minimum Bills (0 gal.) plus Volume Charge Multifamily (per unit) 5/8" Residential 5/8" Commercial 3/4" Commercial 1" Commercial 1'k" Commercial 2" Commercial 3" Commercial 4" Commercial Variable Rate per 1,000 gallons Residential Maximum - 12,000 gallons Wastewater Rates $ 8.77 8.77 8.77 8.77 8.77 8.77 8.77 8.77 8.77 2.43 37.93 SECTION 3. The tapping fees for water service for the CITY OF STEPHENVILLE shall be as follows: Water Tap Meter Fee 3/4 5/8 x 3/4 $166.00 1" l" 240.00 1'h" 1'h" 570.00 2" 2" 863.00 SECTION 4. The tapping fee for wastewater service shall be $100.00 for a 4" tap and $125.00 for a 6" tap. In the event that installation of a water or wastewater tap involves repairs to a street, an additional charge of $5.00 per lineal foot shall be imposed. In the event that a water or wastewater tap requires street or highway boring, a fee of $7.00 per lineal foot shall be imposed. In the event that a contractor is required to perform a boring operation, the actual cost for the boring work shall be imposed. SECTION 5. The winter months' billing structure shall be as follows: The wastewater volume charge for each residential customer shall be based on the average monthly water usage for that water account as billed for the preceding months of December, January and February. If an average monthly usage is not available for such three (3) preceding months, then the sewer bill shall be based on a predetermined monthly residential average use of eight thousand (8,000) gallons per month or actual usage. No monthly sewer bill to custo- mers in this category shall exceed thirty -seven dollars and ninety -three cents ($37.93). This monthly bill will apply until another three (3) month winter usage is established or rates change. SECTION 6. The multifamily water and wastewater billing structure shall be computed by multiplying the number of living units times the minimum bill times 70% of the maximum occupancy plus the actual volume charge for water and wastewater. The rates set forth herein shall be effective March 1, 1993, and shall be reflected in all billings thereafter. The winter month's billing structure set forth herein shall be effective April 1, 1993, or as soon as an average can be calculated, and shall be reflected in all billings there- after. The multifamily billing structure set forth herein shall be effective September 1, 1993, and shall be reflected in all billings thereafter. PASSED AND APPROVED this 17th day of February, 1993. E Lavinia rmann, Mayor yce oemberton, City Secretary REVIEWED BY: DONALD B. DAVIS, City Administrator APPROVED AS TO FORM AND LEGALILTY RANDY THOMAS, City Attorney After some discussion, Councilman Scott Evans made the motion to approve the batting cage contract, with addition as discussed. Seconded by Councilman George Swearingen. The motion carried UNANIMOUSLY by roll call vote. Councilman Don Zelman questioned allowing private businesses in the City Park. Does this open up a situation of a lot of people making a request for private businesses in the park that the City would prefer not be sold in the public park? Should the Council establish what private businesses may or may not be in the public parks? It was the consensus of the Council to assign this to the Planning & Development Committee to come up with a policy regarding privatization of con- cessions within the City Park system. IX. PROPOSED RATE INCREASE FROM TU ELECTRIC. Danny Hodges, local manager of TU Electric, addressed the Council stating that on Januay 22, 1993, they filed a rate case in Stephenville, 372 towns across the state, and the Public Utility Commission in Austin, requesting a 15.3% rate increase for $760,000,000. He said he is offering the Council an ordinance that would acknowledged that this case is being looked at by the Public Utility Commission and that the Council will agree with the final order of the PUC as it is rendered. Councilman Bill Johnson advised that due to a conflict of interest, he would refrain from discussion or voting. Don Davis, City Administrator, advised the Council of a letter from the City of Arlington requesting cities within the service areas of TU Electric join a coali- tion to work with the office of Public Utility Consumer Affairs in contesting this rate request before the Public Utilities Commission. If you wish to join the coalition, they are assessing a 100 per capita, which would be reimbursed to the City, by the utility company, which would be shown as an expense by the utility company. Councilman Scott Evans commented that he felt the City Council had enough to do without attending a coali- tion. He thinks the case will be pretty well heard whether we are in the coalition or not. After discussion, Councilman Scott Evans made the motion to approve an ordinance ( #1993 -04) in which the City of Stephen -ville will accept the rate set by the - 15 - Public Utility Commission. Also, that we will not join the coalition. Seconded by Councilman George i Swearingen. The motion carried by the following vote: AYES: Councilmen Sam Taylor, Scott Evans, George Swearingen, Dan Collins and Bill Bailey. NOES: Councilmen Alan Nix, Don Zelman and Mayor Lavinia Lohrmann. ABSTAIN: Councilman Bill Johnson. X. CITY ADMINISTRATOR'S REPORT Don Davis, City Administrator, advised the Council that we have received the first installment of the SRF funding and it is invested. Mr. Davis commended the Director of Parks & Recreation, Ronnie Isham, for being selected by the American Softball Association to manage the United States' softball team that is being sent to New Zealand to participate in the world games this month. XI. City Attorney Randy Thomas gave report on the Open Government Seminar in Fort Worth. Mayor Lohrmann recessed the open portion of this meeting and called the Council into Executive Session. XII. EXECUTIVE SESSION in compliance with the provisions of the Texas Open Meetings Law, authorized by: Section 2(e) (Private consultation between the City Council and its attorney to discuss pending or contemplated litigation); A. Status Report on Condemnation Suit - Schnur Property B. Status Report on Easement Acquisition from R. Dickens, R. Elliott, and Heritage Hills. Mayor Lorhmann reconvened the Council into open session and announced that NO ACTION was taken on matters discussed in executive session. There being no other business to come before t e Council at this time, Mayor Lohrmann adjourns the meeti LC.t% rMtitC�- �� ;cPemberton, - Lavinr" ohrmann, Mayor City Secretary - 16 - ORDINANCE NO. 1993 -03 AN ORDINANCE OF THE CITY OF STEPHENVILLE ADOPTING GUIDELINES AND CRITERIA FOR GRANTING TAX ABATEMENT IN A REINVESTMENT ZONE. WHEREAS, the creation and retention of job opportunities that bring new wealth is a high civic priority; and WHEREAS, new jobs and investment will benefit the area economy, provide needed opportunities, strengthen the real estate market and generate tax revenue to support local services; and WHEREAS, the City of Stephenville must compete with other localities across the nation currently offering tax inducements to attract new plant and modernization projects; and WHEREAS, any tax incentives offered in the City of Stephenville would reduce needed tax revenue unless strictly limited in applica- tion to those new existing industries that bring new wealth to the community; and . WHEREAS, any tax incentives should not adversely affect the com- petitive position of existing companies operating in the City of Stephenville; and WHEREAS, the abatement of property taxes, when offered to attract pri- mary jobs in industries which bring in money from outside a community instead of merely recirculating dollars within a community, has been shown to be an effective method of enhancing and diversifying an area's economy; and WHEREAS, the City of Stephenville wishes to offer abatement to private business which assist the City in constructing needed public improvements; and WHEREAS, Texas law requires any municipal government to establish Guidelines and Criteria as to eligibility for tax abatement agreements prior to granting of any future tax abatement, said Guidelines and Criteria to be effective for a two year period from date adopted unless amended or repealed by a three - quarters vote of the City Council. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS, DOES HEREBY ADOPT THESE GUIDELINES AND CRITERIA FOR GRANTING TAX ABATEMENT IN A REINVESTMENT ZONE. DEFINITIONS SECTION 1 (a) "Abatement" means the full or partial exemption from ad valorem taxes of certain real property in a reinvestment zone designated for economic development purposes. (b) "Eligible jurisdiction" means Erath County and any municipality, school district, or college district or other taxing district eligible to abate its taxes according to Texas law that levies ad valorem taxes upon and provides service to property located within the proposed or existing reinvestment zone. (c) "Agreement" means a contractual agreement between a property owner and /or lessee and an eligible jurisdiction for the purposes of tax abatement. (d) "Base year value" means the assessed value of eligible property on January 1 preceding the execution of the agreement plus the agreed upon value of eligible property improvements made after January 1, but before the execution of the agreement. (e) "Economic life" means the number of years a property improvement is expected to be in service in a facility. (f) "Deferred maintenance" means improvements necessary for continued operations which do not improve productivity or alter the process technology. (g) "Expansion" means the addition of buildings, structures, fixed machinery or equipment for purposes of increasing production capacity. (h) "Facility" means property improvements completed or in the pro- cess of construction which together comprise the integral whole. (i) "Manufacturing Facility" means buildings and structures, including fixed machines and equipment, the primary purpose of which is or will be the manufacture of tangible goods or materials or the processing of such goods or materials by physi- cal or chemical change. (j) "Modernization" means the replacement and upgrading of existing facilities which increases the productive input or output, upda- tes the technology or substantially lowers the unit cost of the operation. Modernization may result from the construction, alteration or installation of buildings, structures, fixed machi- nery or equipment. It shall not be for the purpose of recon- ditioning, refurbishing or repairing. (k) "New Facility" means a property previously undeveloped which is placed into service by means other than or in conjunction with expansion or modernization. (1) "Other Basic Industry" means buildings and structures including fixed machinery and equipment not elsewhere described, used or to be used for the production of products or services or the sale of products or services and result in the creation of new permanent jobs and bring new wealth in. - (m) "Regional Distribution Center Facility" means buildings and structures, including fixed machinery and equipment, used pri- marily to receive, store, service or distribute goods or materials owned by the facility operator where a majority of the goods or services are distributed to points at least 100 miles from any part of Stephenville. (n) "Regional Entertainment Facility" means buildings and structures, including fixed machinery and equipment, used or to be used to provide entertainment through the admission of the general public where the majority of users reside at least 100 miles from any part of the City of Stephenville. (o) "Regional Service Facility" means buildings and structures, including fixed machinery and equipment, used or to be used to service goods where a majority of the goods being serviced origi- nate at least 100 miles from any part of the City of Stephenville. (p) "Research Facility" means building and structures, including fixed machinery and equipment, used or to be used primarily for research or experimentation to improve or develop new tangible goods or materials or to improve or develop the production pro- cesses thereto. ABATEMENT AUTHORIZED Section 2 (a) Authorized Facility. A facility may be eligible for abatement if it is a: Manufacturing Facility, Research Facility, Regional Distribution Center Facility, Regional Service Facility, Regional Entertainment Facility or other Basic Industry. (b) Creation of New value. Abatement may only be granted for the additional value of eligible property improvements made sub- sequent to and listed in an abatement agreement between the City of Stephenville and the property owner and lessee (if required), subject to such limitations as the City may require. (c) New and Existing Facilities. Abatement may be granted for new facilities and improvements to existing facilities for purposes of modernization or expansion. (d) Eligible Property. Abatement may be extended to the value of buildings, structures, fixed machinery and equipment, site impro- vements plus that office space and related fixed improvements necessary to the operation and administration of the facility. (e) Ineligible Property. The following types of property shall be fully taxable and ineligible for abatement: land, inventories, supplies, tools, furnishings, and other forms of movable personal property; vehicles; vessels; aircraft; housing; hotel accom- modations; deferred maintenance investments; property to be rented or leased except as provided in Sections 2(f); improve- ments for the generation or transmission of electrical energy not wholly consumed by a new by a new facility or expansion; any improvements, including those to produce, store or distribute natural gas, fluids or gases, which are not integral to the operation of the facility; property which has an economic life of less than 15 years; property owned orused by the State of Texas 0 or its political subdivisions or by any organization owned, operated or directed by a political subdivision of the State of Texas. (f) Owned /Leased Facilities. If a leased facility is granted abate- ment the agreement shall be executed with the owner and the lessee. (g) Value and Term of Abatement. Abatement shall be granted effec- tive with the January 1 valuation date immediately following the date of execution of the agreement. Projects which meet the employment minimum set forth in Section 2 (h) (2) are eligible for abatement for a portion of the real pro- perty stated in terms of the amount of tax dollars as may be determined by the City Council. Provided, however, that no abatement shall be given in the year when the facility fails to meet the employment.minimum set forth in Section 2 (h) (2) except where the jurisdiction has determined that employment falls below minimum due to accident, casualty, fire, explosion, market conditions, technological changes or natural disaster. Modernization projects are eligible for abatement for a portion -. of the real property stated in terms of the amount of tax dollars as may be determined by the City Council. If a modernization project includes facility replacement, the abated value shall be the value of the new unit(s) less the value of the old unit(s). (h) Economic Qualifications. In order to be eligible for designation as a reinvestment zone and receive tax abatement the planned improvement: (1) must be reasonably expected to increase the appraised value of the property in the amounts as stated in Section 2, TABLE (h)(5); and (2) must be expected to prevent the loss of full -time employ- ment, retain or create employment for a number of new full - time jobs as stated in Section 2, TABLE (h) (5) that is reasonably required in order to operate the facility in an efficient manner manner; provided that this employment qualification shall take effect one year after the effective date of the abatement and continue through the remaining term of the agreement; and (3) must not be expected to solely or primarily have the effect of transferring employment from one part of the City of Stephenville to another; and (4) must be necessary because capacity cannot be provided effi- ciently utilizing existing improved property when reasonable allowance is made for necessary improvements. (5) Minimum Capital Cost and Minimum No. of New of Project Full -Time Jobs Created $ 50,000 150,000 500,000 1 Million 2.5 Million 5 Million 100 5 16 26 51 76 (i) Assistance to the City. In order to be eligible for abatement by the City of Stephenville, the applicant must propose to provide substantial financial assistance to the City by constructing public works that the City is unable to provide from existing budgeted funds. Public works shall include the construction of roads, streets, public buildings, and other such public facili- ties or equipment as may be identified by the City. (j) Taxability. From the execution of the abatement to the end of the agreement period taxes shall be payable as follows: (1) the value of ineligible property as proved in Section 2(e) shall be fully taxable; and (2) the base year value of existing eligible property as deter- mined each year shall be fully taxable; and (3) the additional value of new eligible property shall be taxable in the manner described in Section 2(g). f i APPLICATION Section 3. (a) Any present or potential owner of taxable property in the City of\ Stephenville may request the creation of a reinvestment zone by filing a written request with the City of Stephenville and may request tax abatement by filing a written application with the City of Stephenville. (b) The application shall consist of a completed application form accompanied by: a general description of the new improvements to be undertaken; a descriptive list of the improvements for which an abatement is requested; a list of the kind, number and loca- tion of all proposed improvements of the property; a map and pro- perty description; a time schedule for undertaking and completing the proposed improvements. In the case of modernization a state- ment of the assessed value of the facility, separately stated for real and personal property, shall be given for the tax year imme- diately preceding the application. The application form may require such financial and other information as the City Council deems appropriate for evaluating the financial capacity and other factors of the applicant. The application form shall also iden- tify any public improvements proposed to be constructed by the applicant on behalf of the City or any financial assistance pro- posed to be provided to the City in the construction of public improvements. (c) Upon receipt of a completed application, the City Administrator of, the City of Stephenville shall notify in writing the presiding' officer of the governing body of each eligible jurisdiction. (d) After receipt of an application for creation of a reinvestment zone and application for tax abatement, the City shall determine whether the application qualifies for an abatement under the terms of these guidelines and criteria. Such determination may be delegated to an employee or City department. If it is deter- mined that an application qualifies for abatement, it shall be recommended to the City Council that the applicant be notified in writing that subject to completion of a contract, the project qualifies for abatement. (e) The City of Stephenville shall not enter into an abatement agreement if it finds that the request for the abatement was filed after the commencement of construction, alteration, or installation of improvements related to a proposed modernization, expansion or new facility. (f) Variance. Requests for variance from the provisions of Subsections (a), (e), and (g) of Section 2 and Section 3(e) may be made in written form to a designated employee of the City of Stephenville provided, however, the total duration of an abate- ment shall, in no instance, exceed ten years. Such request shall include a complete description of the circumstances explaining why the applicant should be granted a variance. Approval of a request for variance requires a three - fourths (3/4) vote of the City Council. (1) There will be no substantial adverse effect on the provision of the jurisdiction's service or tax base; and (2) The planned use of the property will not constitute a hazard to public safety, health or morals. (d) Any applicant requesting a variance under Section 3(f) shall be approved by a vote of at least three - fourths (3/4) of the City Council. No application which deviates from the requirements of these Guidelines and Criteria shall be approved unless accom- panied by a request for variance as provided under Section 3(f). PUBLIC HEARING AND APPROVAL Section 4 (a) The governing body of a city may not adopt a resolution, designating a reinvestment zone until it has held a public hearing at which interested persons are entitled to speak and present evidence for or against the designation. Notice of the hearing shall be clearly posted or identified on the City agenda at least 7 days prior to the hearing. The presiding officers of eligible jurisdictions shall be notified in writing at least 7 days prior to the hearing. (b) Prior to entering into a tax abatement agreement the City Council of the City of Stephenville, may, at its option, hold a public hearing at which interested persons shall be entitled to speak and present written materials for or against the approval of the tax abatement agreement. (c) In order to enter into a tax abatement agreement, the City Council must find that the terms of the proposed agreement meet these Guidelines and Criteria and that: (1) There will be no substantial adverse effect on the provision of the jurisdiction's service or tax base; and (2) The planned use of the property will not constitute a hazard to public safety, health or morals. (d) Any applicant requesting a variance under Section 3(f) shall be approved by a vote of at least three - fourths (3/4) of the City Council. No application which deviates from the requirements of these Guidelines and Criteria shall be approved unless accom- panied by a request for variance as provided under Section 3(f). AGREEMENT Section 5 (a) After approval, the City Council shall formally pass a resolution` and execute an agreement with the owner of the facility and lessee as required, which shall include: (1) estimated value to be abated and the base year value; (2) the dollar amount of taxes to be abated each year as pro- vided in Section 2(g); (3) the commencement date and the termination date of abatement; (4) the proposed use of the facility; nature of construction, time schedule, map, property description and improvement list as provided in Application, Section 3(b); (5) contractual obligations in the event of default, violation of terms or conditions, delinquent taxes, recapture, admi- nistration and assignment as provided in Sections 2(a), 2(f), 2(g), 6, 7, and 8, or other provisions that may be required for uniformity or state law; (6) amount of investment and average number of jobs involved; (7) a requirement that the applicant annually submit at a time requested by the City of Stephenville a January employee count for the abated facility which corresponds to employment counts reported in their Employer's Quarterly Report to the Texas Employment Commission, which submission shall be used to determine abatement eligibility for that year and be subject to audit if requested by the governing body. (8) a requirement that the applicant annually submit to the Erath County Appraisal District an application for exemption for so long as such annual application shall be required by law. Such agreement shall normally be executed within 60 days after the applicant has forwarded all necessary information and documentation to the City. RECAPTURE Section 6 (a) In the event that the facility is completed and begins producing product or service, but subsequently discontinues producing pro- duct or service for any reason excepting fire, explosion or other casualty or accident or natural disaster for a period of one year during the abatement period, then the agreement shall terminate and so shall the abatement of the taxes for the calendar year during which the facility no longer produces. The taxes other- wise abated for that calendar year shall be paid to the City of Stephenville within sixty days from the date of termination. (b) Should the City Council determine that the company or individual is in default according to the terms and conditions of it,s agreement, the City shall notify the company or individual in writing at the address stated in the agreement, and if such is not cured within sixty (60) days from the date of such notice ( "Cure Period "), then the agreement may be terminated. (c) In the event that the company or individual, after exercising due diligence to pay taxes properly due, (1) allows its ad valorem taxes owed the City of Stephenville to become delinquent and fails to timely and properly follow the legal procedures for their protest and /or contest; or (2) violates any of the terms and conditions of the abatement agreement and fails to cure during the Cure Period, the agreement then may be terminated and all taxes previously abated by virtue of the agreement will be recaptured and paid within sixty (60) days of the termination. ADMINISTRATION Section 7 (a) The Chief Appraiser of the County shall annually determine an. assessment of the real and personal property comprising the rein- vestment zone. Each year, the company or individual receiving abatement shall furnish the assessor with such information as may be necessary for the abatement. Once value has been established, the Chief Appraiser shall notify the affected jurisdictions which levies taxes of the amount of the assessment. (b) The agreement shall stipulate that employees and /or designated representatives of the City of Stephenville will have access to the reinvestment zone during the term of the abatement to inspect the facility to determine if the terms and conditions of the agreement are being met. All inspections will be made only after the giving of twenty -four (24) hours prior notice and will only be conducted in such manner as to not unreasonably interfere with the construction and /or operation of the facility. All inspec- tions will be made with one or more representatives of the com- pany or individual and in accordance with its safety standards. (c) Upon completion of construction the jurisdiction which created the zone shall annually evaluate each facility receiving abate- ment to ensure compliance with the agreement and report possible violations to the contract and agreement to the City of Stephenville and its attorney. - 16K - ASSIGNMENT Section 8 i Tax abatement agreements may be assigned to a new owner or lessee of the facility with the written consent of the City of Stephenville whose consent shall not be unreasonably withheld. Any assignment shall provide that the assignee shall irrevocably and unconditionally assume all the duties and obligations of the assignor upon the same terms and conditions as set out in the agreement. Any assignment of a tax abatement agreement shall be to an entity that contemplates the same improvements or repairs to the property, except to the extent such improvements or repairs have been completed. No assignment shall be approved if the assignor or the assignee are indebted to the City of Stephenville for ad valorem taxes or other obligations. SUNSET PROVISION Section 9 (a) These Guidelines and Criteria are effective upon the date of their adoption and will remain in force for two years, at which time all reinvestment zones and tax abatement contracts created pursuant to its provisions will be reviewed by the City Council to determine whether the goals have been achieved. Based on that review, the Guidelines and Criteria will be modified, renewed or eliminated. (b) This policy is mutually exclusive of existing Industrial District Contracts and owners of real property in areas deserving of spe- cial attention as agreed by the affected jurisdictions. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS, this the 2nd day of February, 1993. AT T: yc` emberton, City Secretary Lavinia Lo rmann, Mayor A -1 ORDINANCE NO. AN ORDINANCE APPROVING RATE SCHEDULES AND SERVICE REGULATIONS FOR TEXAS UTILITIES ELECTRIC COMPANY, PROVIDING AN EFFECTIVE DATE THEREFOR, PROVIDING CONDITIONS UNDER WHICH SUCH RATE SCHEDULES AND SERVICE REGULATIONS MAY BE CHANGED, MODIFIED, AMENDED OR WITHDRAWN, FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW, AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE , TEXAS: SECTION 1. On January 22, 1993, Texas Utilities Electric Company filed with the Governing Body of this municipality and simultaneously with the Public Utility Commission of Texas a virtually identical Petition and Statement of Intent with proposed changes in the rate schedules and service regulations of said Company. SECTION 2. The rate schedules and service regulations of Texas Utilities Electric Company approved and set by the Public Utility Commission of Texas pursuant to the Petition and Statement of Intent filed by said Company with the Public Utility Commission of Texas on January 22, 1993, are hereby approved as the rate schedules and service regulations under which said Company is authorized to render service and to collect charges from its customers for the sale of electric power and energy within the corporate limits of this municipality until such time as said rate schedules and service regulations may be changed, modified, amended or withdrawn with the approval of the Governing Body of this municipality. SECTION 3. The aforesaid rate schedules and service regulations herein approved shall be effective from and after the date the Public Utility Commission of Texas orders said new rate schedules and service regulations effective for Texas Utilities Electric Company, provided that, in order to effect uniform systemwide rates, changed rates may be earlier placed in effect within this municipality to the same extent that changed rates are earlier placed in effect in all of the other areas served by Texas Utilities Electric Company but only pursuant to an order of the Public Utility Commission of Texas fixing interim rates or pursuant to a bond filed with the Public Utility Commission of Texas and subject to refund to the same extent as authorized by Section 43(e) of the Public Utility Regulatory Act. SECTION 4. The filing of said rate schedules and service regulations shall constitute notice to the consumers of electricity, within this municipality, of the availability and -1- application of such rate schedules and service regulations. SECTION 5. Nothing in this Ordinance contained shall be construed now or hereafter as limiting or modifying in any manner, the right and power of the Governing Body of this municipality under the law to regulate the rates, operations, and services of Texas Utilities Electric Company. SECTION 6. It is hereby officially found and determined that the meeting at which this Ordinance is passed is open to the public and as required by law and that public notice of the time, place and purpose of said meeting was given as required. SECTION 7. An emergency exists necessitating the suspension of any rule requiring multiple readings of this Ordinance and all multiple readings of this Ordinance are hereby waived; this Ordinance shall take effect immediately upon its passage. PASSED AND APPROVED at a Regular Meeting of the City COUNCIL of the City of STEPHENVILLE Texas, on this the --Q- day of %.b�uo� u , 1993. UMayor -2-