HomeMy WebLinkAbout2023-09-12 Work Session & Regular Meeting MinutesCity Council Work Session
Meeting Minutes
THE CITY OF
Anna Tuesday, September 12, 2023 @ 5:30 PM
Anna Municipal Complex - Council Chambers
120 W. 7th Street, Anna, Texas 75409
The City Council of the City of Anna met in a Closed Session at 5:30 PM, on September
12, 2023, at the Anna Municipal Complex - Council Chambers, 120 W. 7th Street, to
consider the following items.
1. Call to Order, Roll Call, and Establishment of Quorum.
Mayor Pike called the meeting to order at 5:30 PM.
Members Present:
Mayor Nate Pike
Mayor Pro Tern Lee Miller
Deputy Mayor Pro Tern Randy Atchley
Council Member Kevin Toten
Council Member Stan Carver
Council Member Elden Baker
Council Member Pete Cain
Members Absent:
None
2. 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). Application of City authority and land -
use regulations and related matters.
b. Discuss or deliberate the purchase, exchange, lease, or value of real
property (Tex. Gov't Code §551.072).
C. Discuss or deliberate Economic Development Negotiations: (1) To discuss
or deliberate regarding commercial or financial information that the City
has received from a business prospect that the City seeks to have locate,
stay, or expand in or near the territory of the City of Anna and with which
the City is conducting economic development negotiations; or (2) To
deliberate the offer of a financial or other incentive to a business prospect
described by subdivision (1). (Tex. Gov't Code §551.087).
d. Discuss or deliberate personnel matters (Tex. Gov't Code §551.074).
Boards and Commissions. Legal services review.
MOTION: Mayor Pike moved to enter closed session. Council Member
Toten seconded. Motion carried 4-0.
Mayor Pike recessed the meeting at 5:34 PM.
Mayor Pike reconvened the meeting at 6:09 PM.
3. Consider/Discuss/Action on any items listed on any agenda - work session,
regular meeting, or closed session - that is duly posted by the City of Anna for
any City Council meeting occurring on the same date as the meeting noticed in
this agenda.
No action taken.
4. Adjourn.
Mayor Pike adjourned the meeting at 6:09 PM.
Approved on e 6th f September 2023
ATTEST: * Pike
City Secretary Carrie L. Land 1913
Regular City Council Meeting
Meeting Minutes
THE CITY OF
Anna Tuesday, September 12, 2023 @ 6:00 PM
Anna Municipal Complex - Council Chambers
120 W. 7th Street, Anna, Texas 75409
The City Council of the City of Anna met on September 12, 2023 at 6:00 PM in the Anna Municipal
Complex -Council Chambers, located at 120 W. 7th Street, to consider the following items.
1
2.
3.
4.
5.
Call to Order, Roll Call, and Establishment of Quorum.
Mayor Pike called the meeting to order at 6:09 PM.
Members Present:
Mayor Nate Pike
Mayor Pro Tern Lee Miller
Deputy Mayor Pro Tern Randy Atchley
Council Member Kevin Toten
Council Member Stan Carver
Council Member Elden Baker
Council Member Pete Cain
Members Absent:
None
Invocation and Pledge of Allegiance.
Mayor Pike led the Invocation and Pledge of Allegiance.
Neighbor Comments.
Joe Crowder spoke about his concerns about customary fees charged by the Fire
Department.
Reports.
Mayor Pike presented a Proclamation proclaiming September 17th to the 23rd,
2023 as Constitution Week.
Work Session.
a. Utility Rate Discussion. (Interim City Manager Ryan Henderson)
6. Consent Items.
Mayor Pike recused himself at 6:27 PM.
MOTION: Council Member Toten moved to approve items a,b,c,d,e,g,h, and i.
Council Member Baker seconded. Motion carried 6-0.
a. Approve City Council Meeting Minutes for August 22, 2023 and September 6,
2023. (City Secretary Carrie Land)
b. Approve an Ordinance amending Article A3.000 Development Fees and Article
A6.000 Utility Fees within Appendix A: Fee Schedule of The City of Anna Code of
Ordinances. (Director of Development Services Ross Altobelli)
The City is in the process of modifying the City of Anna Planning and Development
Regulations. As part of that process, development fees need to be added to reflect
actual costs of administration, plan review, and filed inspections account for new
plan/plat submittal types.
It was recommended that the City Council approve amendments to the fee
schedule by creating new Development Fees (Article A3.00) for services required
by the Planning and Development Regulations within the Code of Ordinance. The
new fees are associated with the following plan/plat types.
1. Preliminary Site Plan
2. Conveyance Plat
Pertaining to Utility Fees (Article A6.000), the city is proposing to add 3 inch water
meter set and tap fees and an 8 inch sewer meter tap fee to meet the
needs/requests of the development community.
AN ORDINANCE OF THE CITY OF ANNA, TEXAS AMENDING THE ANNA CITY
CODE OF ORDINANCES BY AMENDING APPENDIX A (FEE SCHEDULE)
PROVIDING FOR AN EFFECTIVE DATE; PROVIDING FOR A PENALTY
CLAUSE NOT TO EXCEED $2,000 OR THE HIGHEST PENALTY AMOUNT
ALLOWED BY LAW, WHICHEVER IS LESS; AND, PROVIDING FOR THE
PUBLICATION OF THE CAPTION HEREOF.
C. Approve an Ordinance Amending the Code of Ordinances with Regard to Fees for
Certain Emergency Services. (Interim City Manager Ryan Henderson)
From time to time, the City of Anna will be providing emergency services to
community partners such as the ISD, Chamber of Commerce, etc. for games or
community events. As such, the City Manager is seeking the flexibility, through the
amendment of this ordinance, to be able to enter into agreements that offer
emergency services at a reduced rate as prescribed in the ordinance. This
flexibility will be used to make sure that City of Anna public safety personnel are
the choice provider for these community partners at a negotiated, rate that works
for the organization and the community.
The amending ordinance allows the City Manager to enter into interlocal
agreements or agreements with nonprofits to offer a reduced rate for emergency
services as prescribed currently in our code of ordinances.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS
AMENDING THE ANNA CITY CODE OF ORDINANCES WITH REGARD TO
FEES FOR CERTAIN EMERGENCY SERVICES
d. Approve a Resolution amending signatories to execute checks currently on file at
Independent Financial. (Finance Director Alan Guard)
Finance Director Alan Guard is currently authorized as a signatory on the bank
accounts at Independent Financial. His term as Finance Director will formally end
September 15, 2023 and Aimee Ferguson will serve as Interim Finance Director.
It is recommended that Alan Guard's name be removed from and Aimee
Ferguson's name be added to the list of authorized signatories on the City's
accounts.
Staff recommended that Council approve the Resolution amending the authorized
signatories to execute checks currently on file at Independent Bank.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANNA, AMENDING
THE AUTHORIZED SIGNATORIES TO EXECUTE CHECKS CURRENTLY ON
FILE AT INDEPENDENT FINANCIAL BY REMOVING ALAN GUARD FROM THE
LIST OF AUTHORIZED SIGNATORIES; REMAINING WILL BE RYAN
HENDERSON, CARRIE LAND, NATE PIKE, LEE MILLER, AND ADDING AIMEE
FERGUSON TO THE NAMED AUTHORIZED SIGNATURES; AND PROVIDING
AN EFFECTIVE DATE.
e. Approve a Resolution amending the representatives authorized to transact
business with the Texas Local Government Investment Pool (TexPool). (Finance
Director Alan Guard)
The Texas Local Government Investment Pool (TexPool) is one of the City's
primary investment vehicles. Authorized representatives who can conduct
business for the City must be identified by Resolution. The Resolution amends the
list of City representatives by substituting Interim Finance Director, Aimee
Ferguson for Alan Guard. It is necessary to bring this update for Council approval.
Staff recommended that Council approve the Resolution amending the
representatives authorized to transact business with TexPool.
A RESOLUTION OF THE CITY OF ANNA, TEXAS AMENDING THE
AUTHORIZED REPRESENTATIVES AUTHORIZED TO TRANSACT BUSINESS
WITH THE TEXAS LOCAL GOVERNMENT INVESTMENT POOL,
"TEXPOOUTEXPOOL PRIME", A PUBLIC FUNDS INVESTMENT POOL.
f. Approve an Ordinance Repealing the City Curfew for Minors. (Police Chief Dean
Habel)
The City has previously adopted a curfew that restricts the movement and activities
of persons under the age of 18 ("minors"), as an effort to mitigate the amount of
juvenile violence, vandalism, illegal drug activity, and other crime committed within
the City.
Governor Greg Abbot has signed into law HB 1819, effective September 1, 2023,
that creates a new Local Government Code § 370.007, that prohibits any political
subdivision from adopting or enforcing ordinances which would impose curfews on
the movements or actions of minors unless for emergency management purposes.
AN ORDINANCE OF THE CITY OF ANNA, TEXAS, REPEALING ITS CURFEW
FOR MINORS; PROVIDING A SAVINGS CLAUSE; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
MOTION: Mayor Pro Tem Miller moved to approve. Council Member Atchley
seconded. Motion carried 5-1. Council Member Toten opposed.
g. Approve a Resolution adopting a minimum Value to Lien (VTL) ratio regarding the
AnaCapri Development Agreement. (Director of Economic Development Joey
Grisham)
The City Council approved a Development Agreement with Megetel on October
12, 2021 for the AnaCapri Development that stated any reduction to the value to
lien ratio must be approved by the City Council via Resolution.
Based on the latest appraisal, the updated value to lien ratio is 1.76:1. Previously,
the City Council approved a minimum of 1.8:1.
A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING A LIEN TO
VALUE RATIO WITH RESPECT TO THE ANACAPRI PUBLIC IMPROVEMENT
DISTRICT IMPROVEMENT AREA #1 PROJECT
h. Approve an Ordinance authorizing the issuance of the "City of Anna, Texas,
special assessment revenue bonds, series 2023 (The Woods at Lindsey Place
Public Improvement District Improvement Area #1 project)" in a principal amount
not to exceed $7,419,000 payable from special assessments to fund public
improvements in improvement area #1 of The Woods at Lindsey Place Public
Improvement District; approving and authorizing an indenture of trust, a bond
purchase agreement, a limited offering memorandum, a continuing disclosure
agreement and other agreements and documents in connection therewith; making
findings with respect to the issuance of such bonds; and providing an effective
date. (Director of Economic Development Joey Grisham)
The City Council approved the Preliminary Limited Offering Memorandum (PLOM)
at its August 22, 2023 meeting.
The next step in the PID bond process for The Woods at Lindsey Place is approval
of the indenture of trust, bond purchase agreement, limited offering memorandum,
continuing disclosure agreement, and other documents in connection with the
project. The bond closing is expected to take place on October 10, 2023.
AN ORDINANCE AUTHORIZING THE ISSUANCE OF THE "CITY OF ANNA,
TEXAS, SPECIAL ASSESSMENT REVENUE BONDS, SERIES 2023 (THE
WOODS AT LINDSEY PLACE PUBLIC IMPROVEMENT DISTRICT
IMPROVEMENT AREA #1 PROJECT)" IN A PRINCIPAL AMOUNT NOT TO
EXCEED $7,419,000 PAYABLE FROM SPECIAL ASSESSMENTS LEVIED
UPON IMPROVEMENT AREA #1 OF THE WOODS AT LINDSEY PLACE PUBLIC
IMPROVEMENT DISTRICT TO FUND PUBLIC IMPROVEMENTS IN SAID
DISTRICT; APPROVING AND AUTHORIZING AN INDENTURE OF TRUST, A
BOND PURCHASE AGREEMENT, A LIMITED OFFERING MEMORANDUM, A
CONTINUING DISCLOSURE AGREEMENT AND OTHER AGREEMENTS AND
DOCUMENTS IN CONNECTION THEREWITH; MAKING FINDINGS WITH
RESPECT TO THE ISSUANCE OF SUCH BONDS; AND PROVIDING AN
EFFECTIVE DATE
i. Approve a Resolution approving a Preliminary Limited Offering Memorandum for
the sale of "City of Anna, Texas Special Assessment Revenue Bonds, Series 2023
(AnaCapri Public Improvement District Improvement Area #1 Project." (Director of
Economic Development Joey Grisham)
The City Council previously approved a Development Agreement and Public
Improvement District for AnaCapri.
The next step for PID bonds related to the AnaCapri Improvement Area #1 is
approval of the Preliminary Limited Offering Memorandum (PLOM). Bond closing
is currently scheduled for October 24, 2023.
RESOLUTION APPROVING A PRELIMINARY LIMITED OFFERING
MEMORANDUM FOR THE SALE OF "CITY OF ANNA, TEXAS SPECIAL
ASSESSMENT REVENUE BONDS, SERIES 2023 (ANACAPRI PUBLIC
IMPROVEMENT DISTRICT IMPROVEMENT AREA#1 PROJECT)"
j. Approve Resolution Authorizing Restoration of Historic Anna Fire Truck. (Interim
Public Works Director Steven Smith)
In 2021, a landowner in Sweetwater, Texas contacted staff stating that he was in
possession of a 1948 GMC fire truck which was previously in service in the City of
Anna, Texas. Once verified, staff acquired the vehicle.
Fleet personnel assessed the vehicle, and it was substantially intact. Staff made
several attempts to contact restoration facilities that handle classic fire truck
restoration and repair. Luckily, a facility was located in Pilot Point, Texas and it is
the sole facility in the region able to complete this type of project.
A RESOLUTION OF THE CITY OF ANNA, TEXAS AUTHORIZING THE CITY
MANAGER TO EXECUTE A PURCHASE ORDER FOR THE RESTORATION OF
A HISTORIC FIRE TRUCK BY FIRETRUCKS OF AMERICA IN THE AMOUNT
NOT TO EXCEED FIFTY-SIX THOUSAND FIVE HUNDRED DOLLARS AND
ZERO CENTS ($56,500.00); AND PROVIDING FOR AN EFFECTIVE DATE.
MOTION: Council Member Baker moved to approve. Council Member Toten
seconded. Motion carried 6-0. 11
Mayor Pike returned to the meeting at 6:30 PM.
7. Items For Individual Consideration.
a. Consider/Discuss/Action approving an Ordinance adopting the FY2024 Budget.
(Budget Manager Terri Doby)
Texas Local Government Code 102.007 requires the adoption of the budget by the
governing body of the municipality by a record vote.
The Annual Budget is developed through an extensive process of reviewing
requests received from various City departments, then prioritizing: those requests
in a manner that utilizes resources effectively, within fiscal constraints, while
working to achieve goals set forth by the City Council.
The proposed budget was presented to the City Council on August 8th and was
posted on the City's website on August 9th. The public hearing on the proposed
budget and tax rate were conducted on September 5th.
The FY2024 budget is funded with a tax rate of $0.510717 per $100 in taxable
value, which less than the tax rate adopted last year.
While budgets are always a challenge, we have worked diligently to propose a
budget that is both balanced and sufficient to meet the needs of the coming fiscal
year while sustainable for years to come. We express our appreciation to the City
Council for their diligent efforts throughout the year in providing guidance, direction
and support for our efforts to serve the City of Anna.
As Anna continues to grow, the city remains committed to its Strategic Success
Statements. The FY2024 budget is designed to preserve and enhance the quality
of existing services and respond appropriately to our City's continuing growth and
development.
AN ORDINANCE MAKING APPROPRIATIONS FOR THE SUPPORT OF THE
CITY OF ANNA FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2023 AND
ENDING SEPTEMBER 30, 2024; APPROPRIATING MONEY TO AN INTEREST
AND SINKING FUND TO PAY INTEREST AND PRINCIPAL ON THE CITY'S
INDEBTEDNESS; AND ADOPTING THE ANNUAL BUDGET OF THE CITY OF
ANNA FOR THE 2023 — 2024 FISCAL YEAR.
MOTION: Mayor Pike moved to approve. Mayor Pro Tem Miller seconded. Motion
carried 7-0.
b. Consider/Discuss/Action regarding a Resolution ratifying the property tax revenue
increase reflected in the City of Anna FY2024 Budget. (BudgetManager Terri
Doby)
Section 102.007 of the Local Government Code states that adoption of a budget
that will require raising more revenue from property taxes than in the previous year
requires a separate vote of the governing body to ratify the property tax increase
reflected in the budget. A vote under this subsection is in addition to and separate
from the vote to adopt the budget or a vote to set the tax rate required by Chapter
26, Tax Code.
The budget is funded by a tax rate of $0.510717. While this rate is less than the
tax rate adopted last year, a separate vote of the governing body to ratify the
property tax increase reflected in the budget is required. The total amount of
revenue generated from property taxes will increase by $3,057,846 which is a 23.6
percent increase from last year's budget. The property tax revenue to be raised
from new property added to the tax roll this year is $1,934,510.
A RESOLUTION OF THE CITY OF ANNA, ACKNOWLEDGING AND RATIFYING
THAT THE ADOPTION OF THE FISCAL YEAR 2023-2024 ANNUAL BUDGET
WILL REQUIRE RAISING MORE REVENUE FROM PROPERTY TAXES THAN
IN THE PREVIOUS FISCAL YEAR
MOTION: Mayor Pro Tern Miller moved to approve. Council Member Carver
seconded. Motion carried 7-0.
C. Consider/Discuss/Action approving an Ordinance adopting the FY2024 Tax Rate.
(Budget Manager Terri Doby)
Section 26.05 of the Property Tax Code requires that the governing body of each
taxing unit adopt a tax rate for the current year and shall notify the assessor for the
taxing unit of the rate adopted. The governing body must adopt ai tax rate before
September 30th. The tax rate consists of two components, (operations and
maintenance rate and debt service rate), each of which must be approved
separately.
The FY2024 budget can be funded by adopting a tax rate of $0.510717 cents per
$100 valuation. Of the total tax rate, $0.365930 cents are dedicated to the general
fund maintenance and operations (M&O) and $0.144787 cents are dedicated for
the payment of general fund debt obligations, or interest and sinking (I&S).
AN ORDINANCE LEVYING PROPERTY TAXES FOR USE ANDi SUPPORT OF
THE MUNICIPAL GOVERNMENT OF THE CITY OF ANNA FOR THE 2023-2024
FISCAL YEAR; PROVIDING FOR AN INTEREST AND SINKING FUND FOR ALL
OUTSTANDING DEBT OF THE CITY OF ANNA; PROVIDING FOR
APPORTIONING EACH LEVY FOR THE SPECIFIC PURPOSES; AND,
PROVIDING WHEN TAXES SHALL BECOME DUE AND WHEN SAME SHALL
BECOME DELINQUENT IF NOT PAID.
MOTION: Mayor Pike moved that the property tax rate be increased by the
adoption of a tax rate of $0.510717, which is effectively a 10.0% percent increase
in the tax rate. Council Member Cain seconded. Motion carried 7-0.
d. First Reading of a Resolution approving the Fiscal Year 2023-2024 Anna
Community Development Corporation Annual Budget. (Director of Economic
Development Joey Grisham)
Two readings of the Resolution are required prior to adopting the CDC Budget.
The Resolution is included in the proceeding item adopting the CDC Budget. The
CDC Board approved the proposed FY 2023 budget on July 20, 2023. This was
the first reading of the Resolution. The presiding officer read the following:
A RESOLUTION OF THE CITY OF ANNA, TEXAS RATIFYING AND
APPROVING THE FISCAL YEAR 2023-2024 BUDGET FOR THE ANNA
COMMUNITY DEVELOPMENT CORPORATION; AND PROVIDING AN
EFFECTIVE DATE.
e. Second Reading of a Resolution approving the Fiscal Year 2023-2024 Anna
Community Development Corporation Annual Budget. (Director of Economic
Development Joey Grisham)
Two readings of the Resolution are required prior to adopting the CDC Budget.
The Resolution is included in the proceeding item adopting the CDC Budget. The
CDC Board approved the proposed FY 2023 budget on July 20, 2023. This was
the second reading of the Resolution. The presiding officer read the following:
A RESOLUTION OF THE CITY OF ANNA, TEXAS RATIFYING AND
APPROVING THE FISCAL YEAR 2023-2024 BUDGET FOR THE ANNA
COMMUNITY DEVELOPMENT CORPORATION; AND PROVIDING AN
EFFECTIVE DATE.
f. Consider/Discuss/Action a Resolution approving the Fiscal Year 2,023-2024 Anna
Community Development Corporation Annual Budget. (Director of Economic
Development Joey Grisham)
Staff proposed a $5,321,405 FY 2023 Budget, and it was approved by the CDC
Board on July 20, 2023.. The FY 2024 Budget is focused heavily on the Downtown
Master Plan implementation, including $2 million for the municipal plaza, and
continuing to attract new businesses and developments to Anna.
A RESOLUTION OF THE CITY OF ANNA, TEXAS RATIFYING AND
APPROVING THE FISCAL YEAR 2023-2024 BUDGET FOR THE ANNA
COMMUNITY DEVELOPMENT CORPORATION; AND PROVIDING AN
EFFECTIVE DATE.
MOTION: Council Member Carver moved to approve. Mayor Pro Tern Miller
seconded. Motion carried 7-0.
g. Consider/Discuss/Action on a Resolution approving the Fiscal Year 2023-2024
Anna Economic Development Corporation Annual Budget. (Director of Economic
Development Joey Grisham)
Staff proposed a $534,550 FY 2024 Budget, and it was approved by the CDC
Board on July 20, 2023. The FY 2024 Budget is focused heavily on attracting
primary jobs.
A RESOLUTION OF THE CITY OF ANNA, TEXAS RATIFYING AND
APPROVING THE FISCAL YEAR 2023-2024 BUDGET FOR THE ANNA
ECONOMIC DEVELOPMENT CORPORATION; AND PROVIDING AN
EFFECTIVE DATE.
MOTION: Council Member Toten moved to approve. Mayor Pro Tern Miller
seconded. Motion carried 7-0.
h. Consider/Discuss/Action on a Resolution authorizing the City Manager to execute
a Park Fee Development Agreement by and between the City of Anna, Texas and
Skorburg Lot Development, LLC; in a form approved by the City Attorney; and
providing for an effective date. (Interim Assistant City Manager Greg Peters, P.E.)
The zoning for the development project was approved at the June 27, 2023 City
Council Meeting.
This item was discussed at the August 22, 2023 City Council Meeting where no
action was taken. The developer met with the Park Board Liaison and backup Park
Board Liaison and discussed the terms of the agreement in more detail. Following
the meeting, the developer made the following changes to the agreement:
Modified language to be clear regarding the park being dedicated to the City at
the time of final plat for the first phase of the proposed single family
development.
Added language stating that any funds of the identified $1,972,500 not spent
on the park by the developer would be paid to the City for use by the City in
constructing park improvements.
Clarified that the Add Alternate Park Improvements may be constructed by the
developer, or by the City, with scenarios.
Staff feels that these changes adequately address the concerns raised at the
August 22, 2023 City Council Meeting and recommend approval.
Original item language:
Skorburg Lot Development, LLC is seeking to build a residential development
known as Skorburg Anna Ranch, northeast of the intersection ; of East Foster
Crossing and Leonard Avenue. The zoning for the project was approved at the
June 27, 2023 City Council Meeting..
The Concept Plan shows a 28-acre (+/-) common area which the developer has
agreed to dedicate to the City for a public park. The developer is seeking to utilize
the Park Development Fees collected from the development to construct
improvements on the park property for the benefit of both the Skorburg Anna
Ranch neighborhood and all neighbors in Anna.
The developer has presented the overall park concept to the Park Board, who
received the concept positively at the May Park Board Meeting. The park concept
is attached as Exhibit B - Park Concept Plan. If this agreement is approved, the
developer is prepared to return to the Park Board at their September, 2023 meeting
to finalize the list of proposed amenities with input and feedback from the board,
and begin the design process.
The key developer deal points of the agreement are listed below:
• The developer agrees to dedicate 28-acres (+/-) of park land in lieu of paying
Park Land Dedication Fees.
• The developer agrees to a total project budget of $1,972,500 for the design
and construction of improvements to the park. Said funding shall be provided
by the developer in lieu of paying Park Development Fees at the time of Final
Plat. Should the developer spend less than $1,972,500, the remaining balance
shall be paid to the City as Park Development Fees on a per lot basis ($1,500
for single family, $2,000 for multi -family) at the time of building, permit until the
total budget is met.
The developer agrees to provide the land surveying/engineering/landscaping
design and construction plans for the park, including base items and alternate
items.
The developer agrees to construct the following base park amenities: North
Parking Lot, Restroom, Pavilion, Playground, Soccer Field, East-West Trail.
The developer agrees to construct the following add -alternate 'park amenities,
if they can be constructed within the overall project budget of $1,972,500:
South Parking Lot, Trails to/from South Parking Lot, Pickleball & Tennis Courts,
Volleyball Courts (sand).
The key City deal points of the agreement are provided below:
The City agrees to waive Park Land Dedication Fees and Park Development
Fees for the Skorburg Anna Ranch Project as noted above.
The City may choose to provide additional funds to construct alternate
amenities which do not fit within the project budget.
The City reserves the right to use the construction plans to construct any
alternate amenities in the future at the City's cost.
The agreement has specific timeline requirements, including:
• The Developer must commence design within 120 days of the execution of the
agreement.
• The northern parking lot, restroom, and east -west trail must be completed prior
to the 50th house being occupied.
• The pavilion, playground, and one or more soccer fields must be completed
before the 100th house is occupied.
• All add -alternate improvements which fit in the project budget must be
completed before the 200th house is occupied.
Staff recommends approval of the agreement for the following reasons:
The proposed dedication meets the intent of the Park Master Plan and the
Strategic Plan Success Statement: Active, "Diverse recreational venues."
The park land identified is of a size and topography which will provide important
outdoor public space for all Anna neighbors to enjoy.
The Developer is seeking to work directly with the Park Board to design and
construct park amenities based on community needs.
A RESOLUTION OF THE CITY OF ANNA, TEXAS AUTHORIZING THE CITY
MANAGER TO EXECUTE A PARK DEVELOPMENT FEE AGREEMENT WITH
SKORBURG AQUISITIONS, LLC FOR THE DESIGN AND CONSTRUCTION OF
A PUBLIC PARK, IN A FORM APPROVED BY THE CITY ATTORNEY; AND
PROVIDING FOR AN EFFECTIVE DATE.
MOTION: Council Member Carver moved to approve. Council Member Toten
seconded. Motion carried 7-0.
i. Conduct a Public Hearing/Consider/Discuss/Action on a Resolution approving a
negotiated settlement between The Atmos Cities Steering Committee and Atmoss
Energy Corp., Mid -Tex Division regarding the company's 2023 rate review
mechanism filing. (City Attorney Clark McCoy)
The City, along with 181 other Mid -Texas cities served by Atmos Energy
Corporation, Mid -Tex Division ("Atmos Mid -Tex" or "Company), is a member of
the Atmos Cities Steering Committee ("ACSC"). In 2007, ACSC and Atmos Mid -
Tex settled a rate application filed by the Company pursuant to Section 104.301 of
the Texas Utilities Code for an interim rate adjustment commonly referred to as a
GRIP filing (arising out of the Gas Reliability Infrastructure Program legislation).
That settlement created a substitute rate review process, referred to as Rate
Review Mechanism ("RRM"), as a substitute for future filings under the GRIP
statute.
Since 2007, there have been several modifications to the original RRM Tariff. The
most recent iteration of an RRM Tariff was reflected in an ordinance adopted by
ACSC members in 2018. On or about March 31, 2023, the Company filed a rate
request pursuant to the RRM Tariff adopted by ACSC members. The Company
claimed that its cost -of -service in a test year ending December 31, 2022, entitled
it to additional system -wide revenues of $165.9 million.
Application of the standards set forth in ACSC's RRM Tariff reduces the
Company's request to $156.1 million, $113.8 million of which would be applicable
to ACSC members. After reviewing the filing and conducting discovery, ACSC's
consultants concluded that the system -wide deficiency under the RRM regime
should be $130.9 million instead of the claimed $156.1 million.
After several settlement meetings, the parties have agreed to settle the case for
$142 million. This is a reduction of $23.9 million to the Company's initial request.
This includes payment of ACSC's expenses. The settlement also includes an
additional $19.5 million for the securitization regulatory asset expenses related to
Winter Storm Uri. This was previously approved by the Texas Legislature and
Railroad Commission. The Effective Date for new rates is October'1, 2023. ACSC
members should take action approving the Resolution/Ordinance before
September 30, 2023.
RATE TARIFFS
Atmos generated rate tariffs attached to the Resolution/Ordinance will generate
$142 million in additional revenues. Atmos also prepared a Proof of Revenues
supporting the settlement figures. ACSC consultants have agreed that Atmos'
Proof of Revenues is accurate.
BILL IMPACT
The impact of the settlement on average residential rates is an increase of $6.47
on a monthly basis, or 7.31 %. The increase for average commercial usage will be
$24.72 or 5.19%. Atmos provided bill impact comparisons containing these figures.
SUMMARY OF ACSC'S OBJECTION TO THE UTILITIES CODE SECTION
104.301 GRIP PROCESS
ACSC strongly opposed the GRIP process because it constitutes piecemeal
ratemaking by ignoring declining expenses and increasing revenues while
rewarding the Company for increasing capital investment on an annual basis. The
GRIP process does not allow any review of the reasonableness of capital
investment and does not allow cities to participate in the Railroad Commission's
review of annual GRIP filings or allow recovery of Cities' rate case!expenses. The
Railroad Commission undertakes a mere administrative review 'of GRIP filings
(instead of a full hearing) and rate increases go into effect without any material
adjustments. In ACSC's view, the GRIP process unfairly raises customers' rates
without any regulatory oversight. In contrast, the RRM process has allowed for a
more comprehensive rate review and annual evaluation of ,expenses and
revenues, as well as capital investment.
RRM SAVINGS OVER GRIP
While residents outside municipal limits must pay rates governed by GRIP, there
are some cities served by Atmos Mid -Tex that chose to remain under GRIP rather
than adopt RRM. Additionally, the City of Dallas adopted a variation of RRM which
is referred to as DARR. When new rates become effective on October 1, 2023,
ACSC residents will maintain an economic monthly advantage over GRIP and
DARR rates.
Note: ATM Cities and Environs rates are as -filed. Also note that DARR uses a test
year ending in September rather than December.
Mayor Pike opened the public hearing at 7:04 PM.
No comments.
Mayor Pike closed the public hearing at 7:07PM.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS,
APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE ATMOS CITIES
STEERING COMMITTEE ("ACSC") AND ATMOS ENERGY CORP., MID-TEX
DIVISION REGARDING THE COMPANY'S 2023 RATE REVIEW MECHANISM
FILING; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING
TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE
NEGOTIATED SETTLEMENT; FINDING THE RATES TO BE SET BY THE
ATTACHED SETTLEMENT TARIFFS TO BE JUST AND REASONABLE AND IN
THE PUBLIC INTEREST; APPROVING AN ATTACHMENT ESTABLISHING A
BENCHMARK FOR PENSIONS AND RETIREE MEDICAL BENEFITS;
REQUIRING THE COMPANY TO REIMBURSE ACSC'S REASONABLE
RATEMAKING EXPENSES; DETERMINING THAT THIS RESOLUTION WAS
PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS
OPEN MEETINGS ACT; ADOPTING A SAVINGS CLAUSE; DECLARING AN
EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS RESOLUTION TO
THE COMPANY AND THE ACSC'S LEGAL COUNSEL.
MOTION: Mayor Pike moved to approve. Council Member Cain seconded.
Motion carried 7-0.
8. 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).
Application of City authority and land -use regulations and related matters.
b. Discuss or deliberate the purchase, exchange, lease, or value of real property
(Tex. Gov't Code §551.072).
C. Discuss or deliberate Economic Development Negotiations: (1)1 To discuss or
deliberate regarding commercial or financial information that the City has received
from a business prospect that the City seeks to have locate, stay, !or expand in or,
near the territory of the City of Anna and with which the City is conducting economic
development negotiations; or (2) To deliberate the offer of a financial or other
incentive to a business prospect described by subdivision (1). (Tex. Gov't Code
§551.087).
d. Discuss or deliberate personnel matters (Tex. Gov't Code §551.014). Boards and
Commission. Legal services review.
No Closed Session
8. Consider/Discuss/Action on any items listed on any agenda - work session, regular
meeting, or closed session - that is duly posted by the City of Anna for any City Council
meeting occurring on the same date as the meeting noticed in this agenda.
No action taken.
9. Adjourn.
Mayor Pike adjourned the meeting at 7:07 PM.
Approved Aonthy eptember 2023
ATTEST: Mayor Nate Pike
City Secretary Carrie L. Land
1913