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HomeMy WebLinkAbout2010-09-14 Workshop & Regular Meeting PacketCITY OF ANNA AGENDA NOTICE -CITY COUNCIL WORKSHOP September 14,2010 6:30 p.m. -Anna City Hall Administration Building The City Council of the City of Anna will meet in Workshop Session at 6:30 p.m., September 14, 2010, at the Anna City Hall Administration Building, located at 111 North Powell Parkway (Hwy 5), regarding the following items. 1. Call to Order 2. Roll Call and Establishment of Quorum. 3. Discussion regarding proposed Financial Policies. (Philip Sanders) 4. CLOSED SESSION (EXCEPTIONS): Under Tex. Gov't Code Chapter 551, the City Council may enter into closed session to discuss any items listed or referenced on this agenda under the following exceptions: a. consult with legal counsel regarding pending or contemplated litigation and/or on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Government Code (Tex. Gov't Code §551.071); Powell v. City of Anna, Cause No. 401-03815-2009 in the 401st District Court of Collin County, Texas; Texas Star Bank v. City of Anna, Cause No. 380-04163­ 2009 in the 380th District Court of Collin County, Texas; City of Anna v. Walmat Inc., et aI., Cause No. 296-00288-2009, in the 296th District Court of Collin County, Texas; .. The council further reserves the right to enter into executive session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 5. Discussion regarding any item on the City Council's September 14, 2010 Regular Meeting Agenda Notice, which was posted at the same date, time and place of this Workshop Agenda Notice. 6. Adjourn. 1. The Council may vote and/or act upon each ofthe items listed in this agenda. 2. The Council reserves the right to retire into executive session concerning any ofthe items listed on this agenda, whenever it is considered necessary and legally jnstified under the Open Meeting Act. 3. Persons with a disability who want to attend this meeting who may need assistance should contact the City Secretary at 972 924­ 3325 two working days prior to the meeting so that appropriate arrangements can be made. 09-14-10 CC Regular Meeting Agenda.doc Posted 09-10-1 0 This is to certify that I, Natha Wilkison, City Secretary, posted this agenda at a place readily accessible to the public at the Anna City Hall and on the City Hall bulletin board at or before 5:00 p.m., September 10,2010. I. The Council may vote and/or act upon each ofthe items listed in this agenda. 2. The Council reserves the right to retire into executive session conceming any ofthe items listed on this agenda, whenever it is considered necessary and legally justified under the Open Meeting Act 3. Persons with a disability who want to attend this meeting who may need assistance should contact the City Secretary at 972 924­ 3325 two working days prior to the meeting so that appropriate arrangements can be made. 09-14-10 CC Regular Meeting Agenda.doc 2 Posted 09-10-10 CITY OF ANNA AGENDA NOTICE -CITY COUNCIL REGULAR MEETING September 14, 2010 7:30 p.m. -Anna City Hall Administration Building The City Council of the City of Anna will meet in Regular Session at 7:30 p.m., September 14, 2010, at the Anna City Hall Administration Building, located at 111 North Powell Parkway (Hwy 5), to consider the following items. Welcome to the City Council Meeting. Please sign the Sign-In-Sheet as a record of attendance. If you wish to speak on an open-session agenda item please fill out the Opinion/Speaker Registration Form and tum it in to the City Secretary before the meeting starts. 1. Call to Order. 2. Invocation and Pledge of Allegiance. 3. Citizen comments. Citizens are allowed 3 minutes to speak. The Council is unable to respond to or discuss any issues that are brought up during this section that are not on the agenda, other than to make statements of specific factual information in response to a citizen's inquiry or to recite existing policy in response to the inquiry. 4. Receive reports from Staff or the City Council about items of community interest. Items of community interest include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen (but not including a change in status of a person's public office or public employment); a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; and announcements involving an imminent threat to lhe public health and safety of people in the municipality that has arisen after the posting of the agenda. 1. The Council may vote and/or act upon each ofthe items listed in this agenda 2. The Council reserves the right to retire into executive session concerning any ofthe items listed on this agenda, whenever it is considered necessary and legally justified under the Open Meeting Act. 3. Persons with a disability who want to attend this meeting who may need assistance should contact the City Secretary at 972 924­ 3325 two working days prior to the meeting so that appropriate arrangements can be made. 09-14-10 CC Regular Meeting Agenda.doc 3 Posted 09-10-10 5. Consent Items. These items consist of non-controversial or "housekeeping" items required by law. Items may be considered individually by any Council member making such request prior to a motion and vote on the Consent Items. a. Approve City Council Regular minutes for August 24,2010. b. Review Anna Economic Development Regular minutes for June 10, 2010. c. Review Anna Community Development Regular minutes for June 10, 2010. 6. Presentation of Texas Department of Rural Affairs Grant Award. (Philip Sanders) 7. Presentation of Certificates of Appreciation to City of Anna Park: Board Members. 8. ConsiderlDiscuss/Action on a Resolution of the City of Anna, Texas, Authorizing the Submission of a Texas Community Development Block Grant Program Application to the Texas Department of Rural Affairs for the Community Development Fund; and Authorizing the City Manager to Act as the City's Executive Officer and Authorized Representative in all Matters Pertaining to the City's PartiCipation in the Texas Community Development Block Grant Program. (Philip Sanders) 9. Consider/DiscusS/Action on a Resolution of the City of Anna, Texas, Committing Matching Funds in Support of Activities Associated with the 2011-2012 Sewer System Improvements Proposed in an Application to the Texas Department of Rural Affairs for the Community Development Block Grant Program. (Philip Sanders) 10. Consider/DiscusS/Action regarding approving a Resolution supporting a Collin County Redistricting Resolution. (Philip Sanders) 11. Consider/Discuss/Action adopting an Ordinance regarding Approving a Negotiated Resolution between the ATMOS 'Steering Committee" and the ATMOS Energy Corp., MID-TEX Division regarding the Company's Third Rate Review Mechanism Filing in all Cities Exercising Original Jurisdiction. (Philip Sanders) 12. Consider/Discuss/Action regarding a Resolution approving an Interlocal Agreement with Collin County regarding FM 455 funding for Utility Relocation. (Philip Sanders) 13. Consider/Discuss/Action regarding Voting for Candidates for the Texas Municipal League Intergovernmental Risk Pool Board of Trustees. (Philip Sanders) 14. Discussion regarding future annexations. (Philip Sanders) 1. The Council may vote and/or act upon each ofthe items listed in this agenda. 2. The Council reserves the right to retire into executive session concerning any ofthe items listed on this agenda, whenever it is considered necessary and legally justified under the Open Meeting Act. 3. Persons with a disability who want to attend this meeting who may need assistance should contact the City Secretary at 972 924· 3325 two working days prior to the meeting so that appropriate arrangements can be made. 09-14-10 CC Regular Meeting Agenda.doc 4 Posted 09-10-10 15. CLOSED SESSION (EXCEPTIONS): Under Tex. Gov't Code Chapter 551, the City Council may enter into closed session to discuss any items listed or referenced on this agenda under the following exceptions: (a)consult with legal counsel regarding pending or contemplated litigation and/or on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Government Code (Tex. Gov't Code §551.071); Powell v. City of Anna, Cause No. 401-03815-2009 in the 401st District Court of Collin County, Texas; Texas Star Bank v. City of Anna, Cause No. 380-04163-2009 in the 380th District Court of Collin County, Texas; City of Anna v. Walmat Inc., et aI., Cause No. 296-00288-2009, in the 296th District Court of Collin County, Texas; discussion regarding future annexations. The council further reserves the right to enter into executive session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 16. Consider/Discuss/Action on any items listed on posted agenda for September 14, 2010 City of Anna Workshop Session or any closed session occurring during this Regular Meeting, as necessary. 17. Adjourn. This is to certify that I, Natha Wilkison, City Secretary, posted this agenda at a place readily accessible to the public at the Anna City Hall and on the City Hall bulletin board at or before 5:00 p.m., September 10,2010. 1.The Council may vote and/or act upon each ofthe items listed in this agenda 2. The Council reserves the right to retire into executive session concerning any of the items listed on this agenda, whenever it is considered necessary and legally justified under the Open Meeting Act. 3. Persons with a disability who want to attend this meeting who may need assistance should contact the City Secretary at 972 924­ 3325 two working days prior to the meeting so that appropriate arrangements can be made. 09-14-10 CC Regular Meeting Agenda.doc 5 Posted 09-10-10 Item No.S(4-c.l City Secretary's use only City of Anna City Council Agenda Staff Report Council Meeting: September 14,2010 Staff Contact: Philip Sanders Account Code #:_---=N:....:.:..:...A=--_____ Date Prepared: 9/09/10 Budgeted Amount:___-'N~/A..:!..____ Exhibits: 0 Yes DNo AGENDA SUBJECT: Consent Items. These items consist ofnon-controversial or "housekeeping" items required by law. Items may be considered individually by any Council member making such request prior to a motion and vote on the Consent Items. a. Approve City Council Regular minutes for August 24,2010. b. Review Anna Economic Development Regular minutes for June 10,2010. c. Review Anna Community Development Regular minutes for June 10, 2010. SUMMARY: RECOMMENDATION: Staff recommends approval of the consent items. ItemNo.~ city Secretary's use only City of Anna City Council Agenda Staff Report Council Meeting: September 14,2010 Staff Contact: Philip Sanders Account Code #:__________ Budgeted Amount: ____----_ Exhibits: 0 Yes ONo AGENDA SUBJECT: Resolutions in support of the submission of an application to the Community DeVelopment Block Grant (CDBG) Program SUMMARY: The City intends to submit an application for Community Development Block Grant funds in the amount of $275,000 from the Texas Department of Rural Affairs to complete sewer improvements in targeted areas of the City. The application requires that two resolutions to be passed by the counciL The first fonnally approves the submission of the application and authorizing a city representative to act in all matters pertaining to the application. The second resolution specifically authorizes the commitment of a local match amount of $101,853 as a financial contribution toward the project. This match is to be composed of general and/or water and sewer revenue funds. This application is for funds that will be made available during the 2011 or 2012 funding cycles. Projects funded are two year projects. The passage of these resolutions completes the actions required by the council for the successful submission of the TxCDBG application. The application will be submitted to TDRA on October 8,2010. RECOMMENDATION: Staff recommends approval ofthe attached Resolutions. Item No. 't City Secretary's use only City of Anna City Council Agenda Staff Report Council Meeting: September 14, 2010 Staff Contact: Philip Sanders Account Code Date Prepared: 9/0911 0 Budgeted Amount:___-'N:...:,/:..:;.A.:..-___ Exhibits: DYes DNo AGENDA SUBJECT: ConsiderlDiscusslAction on a Resolution of the City of Anna, Texas, Committing Matching Funds in Support of Activities Associated with the 2011-2012 Sewer System Improvements Proposed in an Application to the Texas Department of Rural Affairs for the Community Development Block Grant Program. (Philip Sanders) SUMMARY: RECOMMENDATION: Item No . ..L1L City Secretary's use only City of Anna City Council Agenda Staff Report Council Meeting: September 14,2010 Staff Contact: Philip Sanders Account Code #:__________ Budgeted Amount: _________ Exhibits: 0 Yes DNo AGENDA SUBJECT: A Resolution of regarding the redistricting of congressional, legislative, and state board of education districts. SUMMARY: The Texas House Committee on Redistricting is conducting a public hearing on September 22, 2010 at the University of Texas at Dallas to obtain public input on all issues relating to the redistricting of Congressional, Legislative, and State Board of Education districts following the release of the Federal census in 2011. They will also be gathering information regarding the existence and location of communities of interest to be considered in the creation of Congressional, Legislative, and State Board of Education districts. Commissioner Jaynes has asked the City Council to provide the attached resolution to the House Committee on Redistricting. The resolution requests that Committee include all of Collin County inside congruent Congressional, Legislative, and State Board of Education districts that fairly represent all of Collin County. ItemNo.~ City Secretary's use only City of Anna City Council Agenda Staff Report Council Meeting: September 14,2010 Staff Contact: Philip Sanders Account Code #:_________ Budgeted Amount: ____~--__ Exhibits: 0 Yes DNo AGENDA SUBJECT: An Ordinance of the approving a negotiated resolution between the Atmos Cities Steering Committee ("ACSC" or "Steering Committee'') and Atmos Energy Corp., Mid-Tex Division ("Atmos Mid-Tex" or "Company") regarding the company's third rate review mechanism ("RRM") filing in all cities exercising original jurisdiction. SUMMARY: The City of Anna, along with approximately 148 other cities served by Atmos Energy Mid-Tex Division ("Atmos Mid-Tex" or "Company"), is a member of the Atmos Cities Steering Committee ("ACSC" or "Steering Committee"). On or about March 15, 2010, Atmos Mid-Tex filed with the City an application to increase natural gas rates pursuant to the Rate Review Mechanism ("RRM") tariff approved by the City as part of the settlement of the Atmos Mid-Tex 2007 Statement of Intent to increase rates. This is the third RRM filing under a three year experimental program. The Atmos Mid-Tex RRM filing sought a $70.2 million rate increase. The City worked with ACSC to analyze the schedules and evidence offered by Atmos Mid-Tex to support its request to increase rates. The Ordinance and attached rate and RRM tariffs are the result of negotiations between ACSC and the Company to resolve issues raised by ACSC during the review and evaluation of ACSC's RRM filing. The Ordinance resolves the Company's RRM filing by authorizing an increase in the Company's base rate of $27 million effective for bills rendered on or after October 1, 2010. Additionally, the Ordinance authorizes supplemental revenue of$3.4 million to be recovered through the customer charge component of rates to cover direct costs associated with a steel service line replacement program. The monthly bill impact for the average residential customer will be a $1.40 increase (about a 3.15% increase in the total bill). The ACSC Executive Committee and ACSC legal counsel recommend that all ACSC Cities adopt the Ordinance implementing the rate change. RRM Background: The RRM tariff was approved by ACSC Cities as part of the settlement agreement to resolve the Atmos Mid-Tex 2007 system-wide rate filing at the Railroad Commission. Atmos Mid-Tex's current action represents the third filing pursuant to the three-year trial project known as the RRM process. The RRM process was created collaboratively by ACSC and Atmos Mid­ Tex as an alternative to the legislatively authorized GRIP surcharge process. ACSC opposed GRIP because it constituted piecemeal ratemaking, did not allow any reasonableness review, and Item No. I' P.'v-1, City Secretary's use only did not allow participation by cities or recovery of cities' rate case expenses. The RRM process has allowed for a more comprehensive rate review and annual adjustment as a substitute for GRIP filings during the three-year trial period specified by the tariff. There are two components to the current RRM adjustment. The prospective component adjusts rates for known and measurable changes in operations and maintenance ("O&M") expense and net plant investment. Atmos Mid-Tex and ACSC agreed to cap changes to expenses and invested capital at no more than five percent per year. The true-up component evaluates whether the Company has over or under recovered its earnings for the previous year. For purposes of the RRM true·up component, the Atmos Mid-Tex rate of return on equity and its capital structure are frozen to avoid the parent company from manipulating the overall rate of return. Costs expressly prohibited from recovery through the RRM include first-class air fare, travel, meals or entertainment for an employee's spouse, alcohol, sports events, entertainment, arts and cultural events, sponsorship of sports, arts or cultural events, and social club membership dues. Pumose of the Ordinance: Rates cannot change and the Settlement Agreement with Atmos Mid-Tex cannot be implemented without passage of rate ordinances by cities. No related matter is pending at the Railroad Commission. The purpose of the Ordinance is to approve rate tariffs ("Attachment A") and Proof of Revenues ("Attachment B") that reflect the negotiated rate change pursuant to the RRM process and to ratify a Settlement Agreement recommended by the ACSC Settlement Committee and Executive Committee. As a result of the negotiations, ACSC was able to reduce the Company's requested $70.2 million RRM increase to $27 million. Approval of the Ordinance will result in the implementation of new rates that increase Atmos Mid-Tex's revenues effective October 1,2010. The Settlement Agreement ("Attachment C") to be ratified by the Ordinance authorizes an extension of the RRM process, in modified form to eliminate the true-up component, for an additional two annual filings. The Settlement Agreement also addresses the Atmos Mid-Tex steel service line replacement program and authorizes current cost recovery via an adder to residential and commercial customer charges. Reasons Justifying Approval of the Negotiated Resolution: During the time that the City has retained original jurisdiction in this case, consultants working on behalf of ACSC cities have investigated the support for the Company's requested rate increase. While the evidence does not support the $70.2 million increase requested by the Company, ACSC consultants agree that the Company canjustify an increase in revenues of$21 million. The agreement on $27 million is a compromise between the positions of the parties. The Settlement Agreement includes an allowance for recovery of direct costs, excluding overheads, of the steel service line replacement program. Current year recovery factors shall be $00.15 for residential customers and $00.41 for commercial customers per month. The rates will be adjusted annually, but shall be capped at $00.44 cents for residential customers and $1.22 for commercial customers. Item No. \t ~.J .. City Secretary's use olliY The alternative to a settlement of the RRM filing would be a contested case proceeding before the Railroad Commission on the Company's current application, would take several months and cost ratepayers millions of dollars in rate case expenses, and would not likely produce a result more favorable than that to be produced by the settlement. The ACSC Executive Committee recommends that ACSC members take action to approve the Ordinance authorizing new rate tariffs. Steel Service Line Replacement: Under pressure from the Railroad Commission to establish a comprehensive program to replace service lines that contain steel which is subject to corrosion and leaks, ACSC has worked with Atmos Mid-Tex to establish a risk based approach to steel service line replacement that accomplishes the following goals: 1. Replace all service lines throughout the Mid-Tex Region with the highest degree of risk within two years; 2. Coordination between ACSC city members and Atmos Mid-Tex to minimize disruption of rights of way without compromising safety; 3. To minimize and spread the rate impact on customers of the replacement program, the service lines with little relative risk of leaks should be replaced over a 10-year period; and 4. Current recovery of incremental (above and beyond normal maintenance and repair addressed in RRM proceedings) direct (excluding Atmos Mid-Tex overheads) cost of service line replacement should be permitted as an adder to customer charges. Fulfillment of these goals in this case will lead to $00.15 and $00.41 added to residential and commercial customer charges, respectively. The customer charge assessment may not exceed $00.44 and $1.22 for residential and commercial customers, respectively, prior to the entry of a Final Order in the next system-wide Statement of Intent rate proceeding. Pursuant to the Settlement Agreement, 100,000 steel service lines will be replaced prior to September 30, 2012. Explanation of "Be It Ordained" Paragraphs: 1. This paragraph approves all findings in the Ordinance. 2. This section adopts the attached tariffs ("Attachment A") and the Company's Proof of Revenues ("Attachment B") in all respects and finds the rates set pursuant to the attached tariffs to be just, reasonable and in the public interest. Note that only new tariffs or existing tariffs being revised are attached to the Ordinance. Existing tariffs not being changed in any way are not attached to the Ordinance. 3. This section requires the Company to reimburse ACSC for reasonable rate making costs associated with reviewing and processing the RRM application. Item No. II e~t.4, City Secretary's use only 4. lbis section ratifies the Settlement Agreement ("Attachment C") between ACSC and Atmos Mid-Tex. 5. lbis section repeals any resolution or ordinance that is inconsistent with this Ordinance. 6. lbis section finds that the meeting was conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. 7. lbis section is a savings clause, which provides that if any section(s) is later found to be unconstitutional or invalid, that finding shall not affect, impair or invalidate the remaining provisions of this Ordinance. This section further directs that the remaining provisions of the Ordinance are to be interpreted as if the offending section or clause never existed. 8. This section is a "Most Favored Nations" clause, which protects the City by mandating that if the City 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 the Company's RRM filing would be more beneficial to the City than the terms of the attached tariffs, then the more favorable rates, revenues, terms and conditions, or benefits shall additionally accrue to the City. 9. lbis section provides for an effective date upon passage. 10. lbis paragraph directs that a copy of the signed Ordinance be sent to a representative of the Company and legal counsel for ACSC. RECOMMENDATION: Staff recommends approval of the attached Ordinance. Item No. ..14­ City Secretary's use only City of Anna City Council Agenda Staff Report Council Meeting: September 14,2010 Staff Contact: Philip Sanders Account Code #: _________ Budgeted Amount:. ____~----Exhibits: 0 Yes DNo AGENDA SUBJECT: ConsiderlDiscusslAction regarding a Resolution approving an Interlocal Agreement with Collin County regarding FM 455 funding for Utility Relocation. SUMMARY: Prior to the expansion of FM 455, the City will need to relocate any water and sewer lines that will interfere with the construction project. The project engineer estimates that the total cost of utility relocation will be about $1.7 million. The engineer selected for this project has submitted a proposal for $134,858.50 to provide the construction plans necessary for the relocation project. Commissioner Jaynes and County Engineer Ruben Delgado have indicated that the County would be willing to share the cost of the engineering services with the City. Under the attached Inter-local Agreement, the County would agree to reimburse the City $117,358.50 of the total contract price. The City would need to cover the remaining $17,500. After the County approves the attached ILA, we will bring the engineering services contract to the City Council for approval. The actual utility relocation project will not start until TxDOT has acquired all of the right-of-way necessary for this project. We understand that right-of-way acquisition will take 12 to 18 months. RECOMMENDATION: Staff recommends approval of the attached Resolution. ItemNo.~ City Secretary's use only City of Anna City Council Agenda Staff Report Council Meeting: September 14,2010 Staff Contact: Philip Sanders Account Code Budgeted ArrlOUlnt:_________ Exhibits: DYes DNo AGENDA SUBJECT: ConsiderlDiscussl Action regarding Voting for Candidates for the Texas Municipal League Intergovernmental Risk Pool Board of Trustees. SUMMARY: The City of Anna currently purchases workers' compensation, property, and liability insurance through the Texas Municipal League Intergovernmental Risk PooL The Risk Pool is governed by a 15 member Board of Trustees elected by the participating members. The City Council is being asked cast votes to fill places 6, 7, 8, and 9 on the Board. A copy of the ballot that includes a brief biography on each of the candidates is included in the packet. The Council may cast one vote for each open seat.