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HomeMy WebLinkAbout2013-10-01 - Regular City CouncilMINUTES OF REGULAR BUSINESS MEETING City of Stephenville - City Council Tuesday, October 1, 2013, 5:30 P.M. The City Council of the City of Stephenville, Texas, convened on October 1, 2013, at 5:30 p.m., in the Council Chambers at City Hall, 298 West Washington Street, for the purpose of a Regular Business Meeting, 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 Chapter 551, Government Code, Vernon's Texas Codes Annotated, with the following members present, to wit: Mayor Jerry K. Weldon II Council members Casey Hogan Malcolm Cross Doug Svien Russ McDanel Brady Pendleton Alan Nix Martha Taylor Scott Evans Others Attending Mark A. Kaiser, City Administrator Randy Thomas, City Attorney Cindy L. Stafford, City Secretary Call to Order. The meeting of the Stephenville City Council was called to order at 5:30 p.m. on Tuesday, October 1, 2013, by Mayor Weldon. Mayor Weldon recognized outgoing Council Member Martha Taylor. The mayor thanked Taylor for all her hard work and for everything she has done in her role as council member. He presented her with a plaque inscribed, "In grateful appreciation for her dedication and service to the City of Stephenville, 2009-2013." Taylor explained that she and her husband will be moving to a home outside the city limits, therefore, not able to continue serving as a member of the council. She said that she has enjoyed serving the citizens of Stephenville and grateful for this experience. Mayor Weldon thanked those persons involved with the success of the recent rodeo activities. II. Citizens' General Discussion Fredie Goble, 413 Bluebonnet, Stephenville, said that he is disappointed in the United States government and with city government for taking out prayer. He said that he didn't see any reason to increase the city tax rate. He said that we need to get more businesses in Stephenville. Goble also mentioned that code violations are not being enforced. He asked the council to start working for the people. Regular Business Meeting October 1, 2013 Stephenville City Council Marian Cale, 432 Tanglewood Trail, Stephenville, spoke on behalf of a group of concerned citizens, including Carla Trussell and Virginia Abel. Cole stated that they are concerned with the recent action of the city council to raise the tax rate. She listed criticisms of city personnel and challenges to the council to "come in to the 21't century". Cipriano Rivera,1050 North Paddock, Stephenville, stated that he was also disappointed in the increase in the tax rate. He expressed disappointment that city employees believe they cannot come forward to "speak up" for a pay increase. Andrew.lohnson, representing State RepresentativeJ. D. Sheffield, extended an invitation to the council and citizens of Stephenville to a ribbon cuttingforthe opening of Rep. Sheffield's local office at InterBank in Stephenville. III. PLANNING AND ZONING COMMISSION —Consider Final Plat of Lakewood Subdivision Phase 3, being 7.404 acres of land in the William Sims Survey, Abstract 683, City of Stephenville, Erath County, Texas. MOTION by Alan Nix, second by Casey Hogan, to approve the final plat of Lakewood Subdivision Phase 3. MOTION CARRIED by unanimous vote. IV. Consider Adopting Ordinance No. 2013-18 Approving a Negotiated Resolution between the Atmos Cities Steering Committee and Atmos Energy Corp., Mid -Tex Division Regarding the Company's 2013 Annual Rate Review Mechanism Filing in All Cities Exercising Original Jurisdiction; Declaring Existing Rates to be Unreasonable; Adopting Tariffs that Reflect Rate Adjustments Consistent With the Negotiated Settlement and Findingthe Ratesto be set by the Attached Tariffs to be Just and Reasonable; Requiring the Company to Reimburse Cities' Reasonable Ratemaking Expenses MOTION by Brady Pendleton, second by Martha Taylor, to adopt Ordinance No. 2013-18. MOTION CARRIED. V. FINANCE COMMITTEE REPORT A. Consider Approving Contract for Electricity from a Retail Electric Provider for July 2016 through December 2019 MOTION by Doug Svien, second by Alan Nix, to approve the contract with "5" for procurement and management of electricity costs. MOTION CARRIED by unanimous vote. MOTION by Doug Svien, second by Alan Nix, to approve the contract with Texas General Land Office Retail Sales Local Agreement as the electricity provider. MOTION CARRIED by unanimous vote. B. Tax Increment Financing. Schrader & Cline notified the city that it is necessary for their company to withdraw their proposal. Council members may be visiting other communities which have completed the TIF process. Regular Business Meeting October 1, 2013 Stephenville City Council C. Grants. No action was taken as this was a review of grant history since 2010. D. Consider Adopting Resolution No. 2013-08 Directing Publication of Notice of Intention to Issue Certificates of Obligation to Fund Construction Costs of Water and Sewer Lines, and Resolving Other Matters Pertaining Thereto MOTION by Doug Svien, second by Russ McDanel, to approve Resolution No. 2013-08. MOTION CARRIED by unanimous vote. VI. PUBLIC WORKS COMMITTEE REPORT —Upper Leon River Municipal Water District Report by Gary Lacy, General Manager Alan Nix reported that the committee heard a report from Gary Lacy regarding the process and reasoning for future construction improvements to the Upper Leon River MWD water treatment facility. Lacy indicated the consumption rate charged to the City of Stephenville is anticipated to rise from $3.04 to $3.96 per 1,000 gallons of water. VII. ENVIRONMENTAL MANAGEMENT COMMITTEE REPORT --Contract with Progressive Waste Solutions MOTION by Brady Pendleton, second by Martha Taylor, to renegotiate the contract with Progressive Waste Solutions. MOTION CARRIED by unanimous vote. Vill. NOMINATIONS COMMITTEE REPORT —Consider Vacancy of Place 7, Stephenville City Council MOTION by Malcolm Cross, second by Martha Taylor, that subsequent to Martha Taylor's resignation, to keep Place 7 open until the May 10, 2014 City General Election. MOTION CARRIED. MOTION by Russ McDanel, second by Alan Nix, to appoint Casey Hogan as the Chairman of the Personnel Committee. MOTION CARRIED by unanimous vote. IX. CONSENT AGENDA Russ McDanel asked that Items A.1 and A.3. be removed so that typographical errors could be identified. MOTION by Martha Taylor, second by Doug Svien, to approve Items A.2., B., C., D., and E. MOTION CARRIED. MOTION by Doug Svien, second by Casey Hogan, to approve Items A.1. and A.3. as corrected. MOTION CARRIED. A. Approve Minutes 1. Regular Council Meeting on September 3, 2013 2. Special Council Meeting on September 10, 2013 3. Special Council Meeting on September 17, 2013 Regular Business Meeting October 1, 2013 Stephenville City Council B. Approve Renewal of Interlocal Agreement with the City of Fort Worth Environmental Collection Center for Household Hazardous Waste Program C. Approve Contract for Professional Engineering Services with Pipeline Analysis, LLCfor Sanitary Sewer Evaluation Survey of Wastewater Collection Basin 8 D. Approve Bid Awards 1. Patrol Cars 2. Heart Monitor/Defibrillator E. Approve Authorization to Sell City Property 1. Patrol Car 2. Park & Rec Truck 3. Display Cabinet X. Comments by City Administrator • Alexander Road should be completed in the next three to four weeks. • FM988 project is on schedule. • Construction should begin soon on the traffic signal at Washington Street and 011ie Avenue. XI. Comments by Council Members Council members individually expressed their best wishes to Martha Taylor and thanked her for her years of service. XII. EXECUTIVE SESSION. At 7:27 p.m., Mayor Weldon recessed the open portion of the meeting, and council went into executive session in compliance with the provisions of the Texas Open Meetings Law, Subchapter D, Government Code, Vernon's Texas Codes, Annotated, in accordance with Sec. 551.072 Deliberations about Real Property —Acreage in John W. Bradley, Daniel Bell, Edward Bond, James Conger, and Ira Foster Surveys, Erath County, Texas Council reconvened in open session at 8:41 p.m. XIII. Action taken on matters discussed in executive session (if necessary) MOTION by Martha Taylor, second by Alan Nix, to authorize city staff to proceed with negotiations on subject property under the advice of the city attorney. MOTION CARRIED by unanimous vote. Regular Business Meeting October 1, 2013 Stephenville City Council XIV. Adjourn MOTION by Martha Taylor, second by Doug Svien, to adjourn the meeting. MOTION CARRIED at 8:43 p.m. ATTEST: Regular Business Meeting October 1, 2013 Stephenvilie City Council Jerry f Wel o II, Mayor ORDINANCE NO. 2013-28 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS, APPROVING A NEGOTIATED RESOLUTION BETWEEN THE ATMOS CITIES STEERING COMMITTEE AND ATMOS ENERGY CORP., MID-TEX DIVISION REGARDING THE COMPANY'S 2013 ANNUAL RATE REVIEW MECHANISM FILING IN ALL CITIES EXERCISING ORIGINAL JURISDICTION; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED SETTLEMENT AND FINDING THE RATES TO BE SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; REQUIRING THE COMPANY TO REIMBURSE CITIES' REASONABLE RATEMAKING EXPENSES; REPEALING CONFLICTING RESOLUTIONS OR ORDINANCES; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; ADOPTING A SAVINGS CLAUSE; DECLARING AN EFFECTIVE DATE; PROVIDING A MOST FAVORED NATIONS CLAUSE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND THE STEERING COMMITTEE'S LEGAL COUNSEL. WHEREAS, the City of Stephenville, Texas ("City") is a gas utility customer of Atmos Energy Corp., Mid -Tex Division ("Atmos Mid -Tex" or "Company"), and a regulatory authority with an interest in the rates and charges of Atmos Mid -Tex; and WHEREAS, the City is a member of the Atmos Cities Steering Committee ("ACSC"), a coalition of approximately 164 similarly situated cities served by Atmos Mid -Tex that have joined together to facilitate the review of and response to natural gas issues affecting rates charged in the Atmos Mid -Tex service area; and WHEREAS, pursuant to the terms of the agreement settling the Company's 2007 Statement of Intent to increase rates, ACSC Cities and the Company worked collaboratively to develop a Rate Review Mechanism ("RRM") tariff that allows for an expedited rate review process controlled in a three-year experiment by ACSC Cities as a substitute to the current Gas Reliability Infrastructure Program ("GRIP") process instituted by the Legislature; and WHEREAS, the City took action in 2008 to approve a Settlement Agreement with Atmos Mid -Tex resolving the Company's 2007 rate case and authorizing the RRM tariff; and WHEREAS, in 2013, ACSC and the Company negotiated a renewal of the RRM tariff process for an additional five years; and WHEREAS, the City passed an ordinance renewing the RRM tariff process for the City for an additional five years; and WHEREAS, the RRM renewal tariff contemplates reimbursement of ACSC Cities' reasonable expenses associated with RRM applications; and WHEREAS, on or about July 15, 2013, the Company filed with the City its first annual RRM filing under the renewed RRM tariff, requesting to increase natural gas base rates by $22.7 million; and Atmos Rate Ordinance —Page 1 WHEREAS, ACSC coordinated its review of Atmos Mid -Texas RRM filing through its Executive Committee, assisted by ACSC attorneys and consultants, to resolve issues identified by ACSC in the Company's RRM filing; and WHEREAS, the ACSC Executive Committee, as well as ACSC's counsel and consultants, recommend that ACSC Cities approve the attached rate tariffs ("Attachment A" to this Ordinance), which will increase the Company's revenues by $16.6 million; and WHEREAS, the attached tariffs implementing new rates are consistent with the negotiated resolution reached by ACSC Cities and are just, reasonable, and in the public interest; TEXAS: NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, Section 1. That the findings set forth in this Ordinance are hereby in all things approved. Section 2. That the City Council finds the existing rates for natural gas service provided by Atmos Mid -Tex are unreasonable and new tariffs which are attached hereto and incorporated herein as Attachment A, are just and reasonable and are hereby adopted. Section 3. That Atmos Mid -Tex shall reimburse the reasonable ratemaking expenses of the ACSC Cities in processing the Company's RRM application. Section 4. That to the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Ordinance, it is hereby repealed. Section 5. That the meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 6. That if any one or more sections or clauses of this Ordinance is adjudged to be unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provisions of this Ordinance and the remaining provisions of the Ordinance shall be interpreted as if the offending section or clause never existed. Section 7. That if ACSC determines any rates, revenues, terms and conditions, or benefits resulting from a Final Order or subsequent negotiated settlement approved in any proceeding addressing the issues raised in Atmos' 2013 RRM filing would be more beneficial to the ACSC Cities than the terms of the attached tariffs, then the more favorable rates, revenues, terms and conditions, or benefits shall additionally and automatically accrue to the ACSC Cities, including the City, without the need for City to take any further action. If this automatic adjustment occurs, Atmos Mid -Tex shall promptly thereafter file with the City an amended tariff documenting the adjustment to rates. Section 8. That this Ordinance shall become effective from and after its passage with rates authorized by attached tariffs to be effective for bills rendered on or after November 1, 2013. Section 9. That a copy of this Ordinance shall be sent to Atmos Mid -Tex, care of Chris Felan, Manager of Rates and Regulatory Affairs, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1862, Atmos Rate Ordinance —Page 2 Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725. PASSED AND APPROVED this 1" day of October, 2013. r t• ATTEST: C/ Cindy L. a ord, City Se6Wary w&_ X._ L Reviewed by Mark A. Kaiser, City Administrator <�� f)L'�� . Randy Thomas, City Attorney Approved as to form and legality Atmos Rate Ordinance —Page 3 RESOLUTION NO. 2013-08 RESOLUTION DIRECTING PUBLICATION OF NOTICE OF INTENTION TO ISSUE COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION THE STATE OF TEXAS § COUNTY OF ERATH § CITY OF STEPHENVILLE § WHEREAS, this City Council deems it advisable to give notice of intention to issue certificates of obligation of the City of Stephenville, Texas, as hereinafter provided; and WHEREAS, it is hereby officially found and determined that the meeting at which this Resolution was passed was open to the public and public notice of the time, place and purpose of said meeting was given, all as required by Chapter 551, Texas Government Code. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE: 1. Attached hereto is a form of the Notice of Intention to issue Certificates of Obligation, the form and substance of which is hereby adopted and approved. 2. The City Secretary shall cause said notice to be published in substantially the form attached hereto, in a newspaper of general circulation in said City, and published in said City, on the same day in each of two consecutive weeks, the date of the first publication thereof to be at least 30 days prior to the time set for the adoption of the ordinance authorizing the issuance of such certificates of obligation as shown in said notice. 3. This Resolution shall become effective immediately upon adoption. APPROVED and ADOPTED by the City Council of the City of Stephenville held on this I" day of October, 2013. Jerry K. P eld n II, Mayor ATTEST: Cindy L. St ord, City Se ary /w/ 1 Reviewed by Mark A. Kaiser, City Administrator Approved as to form and content by Randy Thomas, City Attorney