HomeMy WebLinkAbout2021-O-16 - TIRZ 1C PFP ORDINANCE NO. 2021-0-16
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS, APPROVING AN
AMENDED PROJECT AND FINANCING PLAN FOR TAX INCREMENT REINVESTMENT ZONE NUMBER
ONE,CITY OF STEPHENVILLE,TEXAS,ESTABLISHED PURSUANT TO CHAPTER 311 OF THE TEXAS TAX
CODE
WHEREAS,the City of Stephenville,Texas(the "City"), pursuant to Chapter 311 of the Texas
Tax Code, as amended (the "Act"), may designate a geographic area within the City as a tax
increment reinvestment zone if the area satisfies the requirements of the Act; and
WHEREAS, the Act provides that the governing body of a municipality by ordinance may
designate a noncontiguous geographic area that is in the corporate limits of the municipality to be
a reinvestment zone if the governing body determines that development or redevelopment would
not occur solely through private investment in the reasonably foreseeable future; and
WHEREAS,the City Council desires to promote the development of a certain noncontiguous
geographic area in the City(the"Zone"),through the expansion of a reinvestment zone as authorized
by and in accordance with the Tax Increment Financing Act,codified at Chapter 311 of the Texas Tax
Code;and
WHEREAS, on April 25, 2019, the City Council of the City of Stephenville,Texas, pursuant to
Chapter 311 of the Texas Tax Code, approved Ordinance No. 2019-0-14 designating a contiguous
geographic area within the City as a Reinvestment Zone Number One, City of Stephenville, Texas
(the "Original Boundaries"); and
WHEREAS, on April 25, 2019, the City Council of the City of Stephenville,Texas, pursuant to
Chapter 311 of the Texas Tax Code, approved Ordinance No. 2019-0-15 approving the Project and
Financing Plan for Reinvestment Zone Number One, City of Stephenville, Texas which details the
infrastructure costs eligible for reimbursement; and
WHEREAS, on July 23, 2019, the City Council of the City of Stephenville, Texas, pursuant to
Chapter 311 of the Texas Tax Code, approved Ordinance No. 2019-0-20 expanding the boundaries
of the Zone ("TIRZ 1A"); and
WHEREAS, on July 23, 2019, the City Council of the City of Stephenville, Texas, pursuant to
Chapter 311 of the Texas Tax Code, approved Ordinance No. 2019-0-21 approving the amended
Project and Financing Plan for Reinvestment Zone Number One, City of Stephenville, Texas which
details the infrastructure costs eligible for reimbursement; and
WHEREAS, on February 4, 2020,the City Council of the City of Stephenville,Texas, pursuant
to Chapter 311 of the Texas Tax Code,approved Ordinance No.2020-0-05 expanding the boundaries
of the Zone ("TIRZ 1B"); and
WHEREAS, on February 4, 2020,the City Council of the City of Stephenville,Texas, pursuant
to Chapter 311 of the Texas Tax Code, approved Ordinance No. 2020-0-06 approving the amended
Project and Financing Plan for Reinvestment Zone Number One, City of Stephenville, Texas which
details the infrastructure costs eligible for reimbursement; and
WHEREAS,the City Council of the City of Stephenville,Texas, pursuant to Chapter 311 of the
Texas Tax Code, now desires to amend the Project and Financing Plan to expand the boundaries for
Reinvestment Zone Number One, City of Stephenville,Texas; and
WHEREAS, as authorized by Section 311.011(e), and 311.008, of the Act, on May 4, 2021,
the Board recommended that the Plan, as amended in Exhibit"A", be approved by the City Council:
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE,
TEXAS,THAT:
SECTION 1. RECITALS INCORPORATED
The facts and recitations contained in the preamble of this Ordinance are hereby found and declared
to be true and correct.
SECTION 2. FINDINGS
That the City Council hereby makes the following findings of fact:
i. That the Plan, as amended, includes all information required by Sections
311.011(b) and(c) of the Act.
ii. That the Plan, as amended, is feasible and the amended project plan conforms to the
City's master plan.
iii. That consistent with Section 311.011(e) of the Act, a public hearing is required prior to
the adoption of this Ordinance because the Plan, as amended, does (i) reduce or
increase the geographic area of the Zone; (ii) increase or decrease the tax increment to
be contributed by a taxing unit; (iii) increase the total estimated project costs; or (iv)
designate additional property in the Zone to be acquired by the City.
SECTION 3. APPROVAL OF AMENDED PLAN
That based on the findings set forth in Section 2 of this Ordinance, the Plan, as amended in Exhibit
"A" is hereby approved.
SECTION 4. SEVERABILITY CLAUSE
Should any section, subsection, sentence, clause or phrase of this Ordinance be declared
unconstitutional or invalid by a court of competent jurisdiction, it is expressly provided that any and
all remaining portions of this Ordinance shall remain in full force and effect.The City hereby declares
that it would have passed this Ordinance, and each section, subsection, clause or phrase thereof
irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases
be declared unconstitutional or invalid.
SECTION 5. OPEN MEETINGS
It is hereby found, determined, and declared that sufficient written notice of the date, hour, place
and subject of the meeting of the City Council at which this Ordinance was adopted was posted at a
place convenient and readily accessible at all times to the general public at the City Hall of the City
for the time required by law preceding its meeting, as required by Chapter 551 of the Texas
Government Code, and that this meeting has been open to the public as required by law at all times
during which this Ordinance and the subject matter hereof has been discussed, considered and
formally acted upon.The City Council further ratifies,approves and confirms such written notice and
the contents and posting thereof.
SECTION 7. EFFECTIVE DATE
This Ordinance shall take effect immediately upon its adoption passage.
PASSED AND APPROVED this the 4th day of May, 2021
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V\y '•., �Cr�g Svi- , Mayor
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Staci L. ity Secrets ,9P0 R �,,.`'
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Reviewed A e L. Barnes,
City Manager
Approved as to form and legality by
Randy Thomas, City Attorney
EXHIBIT A
Amended Project and Financing Plan
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ce ..... ggggg ggggg ggggg
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g MA 1 88888 urn wag Awl] g g urn urn urn alga" i g F.F.F.FF '""" A2222 Arin 1
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RESOLUTION NO.2021-R-13
A RESOLUTION OF THE CITY OF STEPHENVILLE, TEXAS FINDING THAT ONCOR ELECTRIC DELIVERY
COMPANY LLC'S APPLICATION FOR APPROVAL TO AMEND ITS DISTRIBUTION COST RECOVERY FACTOR
TO INCREASE DISTRIBUTION RATES WITHIN THE CITY SHOULD BE DENIED;AUTHORIZING PARTICIPATION
WITH OCSC;AUTHORIZING THE HIRING OF LEGAL COUNSEL AND CONSULTING SERVICES; FINDING THAT
THE CITY'S REASONABLE RATE CASE EXPENSES SHALL BE REIMBURSED BY THE COMPANY;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.
WHEREAS, the City of Stephenville, Texas ("City") is an electric utility customer of Oncor Electric
Delivery Company LLC("Oncor"or"Company")with an interest in the rates and charges of Oncor;and
WHEREAS, the Steering Committee of Cities Served by Oncor ("OCSC") is a coalition of similarly
situated cities served by Oncor that have joined together to efficiently and cost effectively review and
respond to electric issues affecting rates charged in Oncor's service area in matters before the Public Utility
Commission ("Commission") and the courts;and
WHEREAS,on or about April 8,2021,Oncor filed with the Commission an Application for Approval
to Amend its Distribution Cost Recovery Factor ("DCRF"), Commission Docket No. 51996, seeking to
increase its total distribution revenue requirement by approximately$97,826,277;and
WHEREAS,the City of Stephenville will cooperate with OCSC in coordinating their review of Oncor's
DCRF filing with designated attorneys and consultants, prepare a common response, negotiate with the
Company,and direct any necessary litigation,to resolve issues in the Company's filing;and
WHEREAS, all electric utility customers residing in the City will be impacted by this ratemaking
proceeding if Oncor's Application is granted;and
WHEREAS, working with the OCSC to review the rates charged by Oncor allows members to
accomplish more collectively than each city could do acting alone;and
WHEREAS,OCSC's members and attorneys recommend that members who have retained original
jurisdiction over electric utility rates deny Oncor's DCRF.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE,TEXAS:
SECTION 1.That the City is authorized to participate with OCSC in Commission Docket No.51996.
SECTION 2.That,subject to the right to terminate employment at any time,the City of Stephenville hereby
authorizes the hiring of the law firm of Lloyd Gosselink Rochelle & Townsend, P.C. and consultants to
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 Oncor's DCRF
application.
SECTION 3. That the rates proposed by Oncor to be recovered through its DCRF charged to customers
located within the City limits should be denied.
SECTION 4.That the Company should continue to charge its existing rates to customers within the City.
SECTION 5. That the City's reasonable rate case expenses shall be reimbursed in full by Oncor within 30
days of the adoption of this Resolution,and within 30 days of presenting monthly bills to Oncor thereafter.
SECTION 6. That 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.That a copy of this Resolution shall be sent to J.Michael Sherburne,Vice President—Regulatory,
Oncor Electric Delivery Company LLC, 1616 Woodall Rodgers Freeway, Dallas, Texas 75202; to Tab R.
Urbantke, Hunton Andrews Kurth LLP, 1445 Ross Avenue, Suite 3700, Dallas,Texas 7520; and to Thomas
Brocato, General Counsel to OCSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin,
TX 78767-1725,or tbrocato@Iglawfirm.com.
PASSED AND APPROVED this 4th day of May, 2021.