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HomeMy WebLinkAbout2016-02-23 Work Session & Regular Meeting Packet1.The Council may vote and/or act upon each of the 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. 1 CITY OF ANNA AGENDA NOTICE – CITY COUNCIL February 23, 2016 6:30 p.m. – Anna City Hall The City Council of the City of Anna will meet in Work Session at 6:30 p.m., on February 23, 2016 at Anna City Hall, located at 111 N. Powell Parkway (Hwy 5), regarding the following items: 1.Call to Order. 2.Roll Call and Establishment of Quorum. 3.Briefing and Discussion regarding City Hall debt. (Clayton Fulton) 4.Briefing and Discussion regarding Police department grant application. (Chief Jenks) 5.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). b.discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov’t Code §551.072); acquisition of right-of- way, easements, and land for municipal facilities. The Council further reserves the right to enter into closed session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 6.Consider/Discuss/Action on any items listed on the posted agenda or any closed session occurring during this meeting, as necessary. 1.The Council may vote and/or act upon each of the 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. 2 7. Adjourn. This is to certify that I, Carrie L. Smith, 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. February 19, 2016. ___________________________________________ Carrie L. Smith, City Secretary Item No. WS 2 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: February 23, 2016 Staff Contact: City Manager Exhibits: None AGENDA SUBJECT: Roll call and establishment of quorum. SUMMARY: Mayor establishes a quorum STAFF RECOMMENDATION: Item No. WS 3 City Secretary’s use only City Council Agenda Staff Report ______________________________ AGENDA SUBJECT: Briefing/Discussion regarding City Hall Debt SUMMARY: As staff have been working with our architects to determine preliminary design and site locations for a future City Hall, we have also been consulting with our financial advisors to evaluate potential debt scenarios as it relates to a new City Hall. With the recent action to authorize the purchase of the land for the new City Hall, staff have invited our financial advisors to discuss the impact of financing the $600,000 land purchase under a short term note to be repaid from future bond proceeds issued to construct the City Hall. STAFF RECOMMENDATION: None Meeting Date: February 23, 2016 Staff Contact: Clayton Fulton Exhibits: No Item No. WS 4 City Secretary’s use only City Council Agenda Staff Report ______________________________ AGENDA SUBJECT: Briefing regarding Police Department Grant Applications SUMMARY: Each Fiscal Year, we scan the various grant funding mechanisms to determine if we can compete for grants that are being offered through the NCTCOG, via the Governor’s office, originating from the Federal Justice Assistance program. As you may recall, we applied for two grants last FY, one adding a School Resource Officer to the staff and one that would fund the salary and benefits for an officer to be assigned as a Child Abuse/Family Violence Detective. That Detective would replace the position we lost when we added patrol supervisors in November of 2014. We won the SRO grant, but not the additional Detective funding. For FY 2017 we identified two Grants that I recommend that we compete for. 1.Radio Upgrade: You may recall that we are being mandated by the Federal Government to upgrade from P25 Phase I radios to P25 Phase II radios. The cost to upgrade our current number of radios is estimated to be about $122k and without any grant funding, that amount would greatly impact the General Fund. We intend to apply for a grant that will give us approx $79k to assist us with this mandate. This grant would fund 13 portable radios with 1 extra battery each, 4 mobile radios, and 1 6-bank radio charger. If we get this grant, the General Fund will be impacted in the amount of approx $43k to fund the rest of the radio requirements. 2.Child Abuse/Family Violence Investigator: This JAG grant would, for 3- years, fund the salary and benefits of a Police Officer to work criminal cases involving those where the victims were children. Further, the Detective would specialize in the investigation of those offenses classified as family violence. If we were awarded this grant, the City will be responsible for funding the uniforms and equipment necessary for a new police officer position (approx $9,500) out of the General Fund and for the Meeting Date: February 23, 2016 Staff Contact: Chief Jenks Exhibits: next two years, the cost would be minimal for items such as replacement uniforms, vehicle fuel, training tuition, etc. At the end of the three-year period, the budget submitted by the Police Department would include the full funding for this full-time, sworn, position. STAFF RECOMMENDATION: These Grants would help the City provide advanced law enforcement services to our citizens without bearing the full costs. Further, it allows us to recover state and federal tax dollars paid by our citizens and provide them with services that directly benefit them. If these projects are something the Council would like to see come to fruition, the staff will pursue these funding opportunities enthusiastically. Item No. WS 5 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: February 23, 2016 Staff Contact: City Manager Exhibits: N/A AGENDA SUBJECT: 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: SUMMARY: 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). b.discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov’t Code §551.072); acquisition of right-of-way, easements, and land for municipal facilities. The Council further reserves the right to enter into closed session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. STAFF RECOMMENDATION: Item No. WS 6 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: February 23, 2016 Staff Contact: City Manager Exhibits: N/A AGENDA SUBJECT: Consider/Discuss/Action on any items listed on posted agenda work session or any closed session occurring during this meeting, as necessary. SUMMARY: STAFF RECOMMENDATION: Item No. WS 7 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: February 23, 2016 Staff Contact: City Manager Exhibits: None AGENDA SUBJECT: Adjourn SUMMARY: Item to adjourn the meeting. STAFF RECOMMENDATION: Staff recommends a motion to adjourn. 1. The Council may vote and/or act upon each of the 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. 1 V ersion 2/18/2016 3:12 PM CITY OF ANNA AGENDA NOTICE – CITY COUNCIL MEETING February 23, 2016 7:30 p.m. – Anna City Hall The City Council of the City of Anna will meet in Regular Session at 7:30 p.m., on February 23, 2016, at the Anna City Hall, 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 turn it in to the City Secretary before the meeting starts. 1.Call to Order/Roll Call. 2.Invocation and Pledge of Allegiance. 3.Citizen comments. Citizens are allowed three minutes to speak to Council. 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 the 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 of the 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. 2 Version 2/18/2016 3:12 PM 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 the City Council Minutes for February 9, 2016. (Carrie Smith) 6. Consider/Discuss/Action approving an ordinance regarding the annexation of a 21.4 acre tract of land located in the Hiram Brinlee Survey, Abstract No. 30 (St. Charles Apts. Inc., owner); a 47.6 acre tract of land located in the John Chambers Survey, Abstract No. 223 and the Samuel Craft Survey, Abstract No. 165 (Bhagat Holdings Ltd., owner); a 15 acre tract of land located in the Jonathan Douthit Survey, Abstract No. 251 (McGuffey Living Trust, owner); an 18.53 acre tract of land located in the William Kitchings Survey, Abstract No. A0505; and a 15.4 acre tract of land located in the W E Throckmorton Survey, Abstract No.A0899 (William & Nora Steward, owners). (Maurice Schwanke) 7. a. Public Hearing: For City Council to hear public comments regarding a request by Donald and Roxanne Terrell, and John and Ashley Vassilakos owners of the property, to re-plat lots 25, 26, and 27, Block A of the Pecan Hollow Subdivision. b. Consider/Discuss/Action approving a resolution regarding the re- plat of lots 25, 26, and 27, Block A of the Pecan Hollow Subdivision. (Maurice Schwanke) 8. Consider/Discuss/Action regarding adoption of an Ordinance establishing regulations for the construction and/or drilling of water wells. (Joseph Johnson) 9. Consider/Discuss/Take Action regarding a Resolution authorizing approval of a contact with Texas Coalition for Affordable Power (TCAP) (Clayton Fulton) 10. 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 1. The Council may vote and/or act upon each of the 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. 3 Version 2/18/2016 3:12 PM Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Government Code (Tex. Gov’t Code §551.071). b. discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov’t Code §551.072); acquisition of right-of- way, easements, and land for municipal facilities. The Council further reserves the right to enter into closed session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 11. Consider/Discuss/Action on any items listed on the posted agenda or any closed session occurring during this meeting, as necessary. 12. Adjourn. This is to certify that I, Carrie L. Smith, 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. February 19, 2016. _____________________________________ Carrie L. Smith, City Secretary Item No. 1 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: February 23, 2016 Staff Contact: City Manager Exhibits: None AGENDA SUBJECT: Roll call and establishment of quorum. SUMM ARY: Mayor establishes a quorum STAFF RECOMMENDATION: Item No. 2 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: February 23, 2016 Staff Contact: City Manager Exhibits: N/A AGENDA SUBJECT: Invocation and Pledge of Allegiance. SUMM ARY: STAFF RECOMMENDATION: Item No. 3 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: February 23, 2016 Staff Contact: City Manager Exhibits: N/A AGENDA SUBJECT: Citizen comments. SUMMARY: Citizens are allowed three 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. STAFF RECOMMENDATION: Item No. 4 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: February 23, 2016 Staff Contact: City Manager Exhibits: N/A AGENDA SUBJECT: Receive reports from Staff or the City Council about items of community interest. SUMMARY: 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 the public health and safety of people in the municipality that has arisen after the posting of the agenda. STAFF RECOMMENDATION: Item No. 5 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: February 23, 2016 Staff Contact: City Manager Exhibits: Attached AGEND A SUBJECT: These items consists of non-controversial or “housekeeping” items required by law. Items may be considered individually by any Council Member making such request prior to motion and vote on the Consent Items. SUMM ARY: a.Approve the City Council Minutes for February 9, 2016. (Carrie Smith) STAFF RECOMMENDATION: Staff recommends approval of the consent items. Item No. 6 City Secretary’s use only City Council Agenda Staff Report ______________________________ AGENDA SUBJECT: Consider/Discuss/Action approving an ordinance regarding the annexation of a 21.4 acre tract of land located in the Hiram Brinlee Survey, Abstract No. 30 (St. Charles Apts. Inc., owner); a 47.6 acre tract of land located in the John Chambers Survey, Abstract No. 223 and the Samuel Craft Survey, Abstract No. 165 (Bhagat Holdings Ltd., owner); a 15 acre tract of land located in the Jonathan Douthit Survey, Abstract No. 251 (McGuffey Living Trust, owner); an 18.53 acre tract of land located in the William Kitchings Survey, Abstract No. A0505; and a 15.4 acre tract of land located in the W E Throckmorton Survey, Abstract No.A0899 (William & Nora Steward, owners). SUMM ARY: In November of 2010 the City Council accepted and approved non-annexation development agreements with Charles Apts. Inc. on 21.4 acres of Land, the Bhagat Holdings Ltd on 47.6 acres of land, the McGuffey Living Trust on 15 acres of land, and the Stewart William D & Nora Yvonne on 15.4 acres of land. Per the terms of the agreements, the respective owner are deemed to have properly filed with the City a petition consenting to voluntary annexation of the respective properties to be completed upon or after the end of the term. The property owners were notified of the proceedings. The mandatory two public hearings have been held by the City Council regarding the 99.4 of total acres described above located east of Sam Rayburn Memorial Hwy and east of FM 2862 (Bhagat tract), located northwest corner of the intersection of FM 2862 and FM 545 (McGuffey tract), located east of Sam Rayburn memorial Hwy at Collin County Outer Loop (St. Charles Apartment Inc. tract) and located northeast corner of the intersection of US 75 and Collin County Outer Loop (Stewart tract). A single family house exists on the Stewart tract and the remaining properties are vacant. STAFF RECOMMENDATION: Approval of Ordinance Date: February 23, 2016 Staff Contact: Maurice Schwanke Exhibits: Yes. Item No. 7 City Secretary’s use only City Council Agenda Staff Report ______________________________ AGENDA SUBJECT: a.Public Hearing: For City Council to hear public comments regarding a request by Donald and Roxanne Terrell, and John and Ashley Vassilakos owners of the property, to re-plat lots 25, 26, and 27, Block A of the Pecan Hollow Subdivision. b. Consider/Discuss/Action approving a resolution regarding the re-plat of lots 25, 26, and 27, Block A of the Pecan Hollow Subdivision. SUMM ARY: . A re-plat has been received on approximately 4.003 acres of land that is located in the Pecan Hollow Subdivision. The purpose of the re-plat is to take three (3) existing lots and turn it into two (2) lots. Under the Local Government Code if lots are being re-platted and they were zoned or had deed restrictions for not more than two residential units per lot a public hearing and notices are required to be sent out prior to approval. The subdivision is located in Anna’s ETJ west of FM 455 and the lots are located in the southwest corner of the subdivision. The subdivision does have deed restrictions. Notices were mailed out to property owners, within the 200 ft. We received one property owner response back with no opposition regarding the proposed re-plat. STAFF RECOMMENDATION: Approval of Resolution Date: February 23, 2016 Staff Contact: Maurice Schwanke Exhibits: Yes. Item No. 8 City Secretary’s use only City Council Agenda Staff Report ______________________________ AGENDA SUBJECT: Consider/Discuss/Action regarding adoption of an Ordinance establishing regulations for the construction and/or drilling of water wells. SUMM ARY: It is prudent to take steps through regulation, permitting, and inspection, to ensure that private wells are properly constructed and that there is a complete physical separation between a private non-potable water source and the City’s potable water system when private wells are constructed, maintained, or reconstructed. The proposed regulations would reduce or eliminate potential contamination of the public water system due to improper construction or incorrect location of a private well. The inspections and permitting required would ensure compliance with the Texas Department of Licensing and Regulation (TDLR), Texas Well Drillers Act regulations, the City’s adopted electrical and plumbing codes, as well as proper setbacks from property lines, buildings, or potential contaminating sources. STAFF RECOMMENDATION: Staff recommends approval of the proposed ordinance. Meeting Date: February 23, 2016 Staff Contact: Joseph Johnson Exhibits: Attached. City Secretary-1 - TCAP Contract - Staff Report Item No. 9 City Secretary’s use only City Council Agenda Staff Report ______________________________ AGENDA SUBJECT: Consider/Discuss/Take Action regarding a Resolution authorizing approval of a contact with Texas Coalition for Affordable Power (TCAP) SUMM ARY: The City of Anna currently purchases power not supplied by the Grayson Collin Co-op through a cooperative agreement with the Texas Coalition for Affordable Power (TCAP). TCAP is a non-profit, political subdivision corporation, owned and controlled by its 171 political subdivision members, the vast majority of whom are cities. TCAP is governed by a 15 member board of directors, all of whom must be city employees or elected city officials. As a political subdivision corporation, TCAP is able to bypass retail electric providers and purchase electricity on the wholesale market and directly negotiate rates. Our current TCAP electricity contract expires at the end of 2017. Beginning Feb. 25 TCAP will establish the size of the load and direct their supplier to look for a rate of 4.1 cents per kWh and lock in pricing for a five-year term. The suppliers and TCAP will monitor the energy market and have until June 30, 2016 to lock in the rate. Once the rate is locked in, the City has 24 hours to execute the contract. According to TCAP, the actual price is likely to be less than the benchmark price. The prices will become effective January 1, 2018. Given that these prices are to be locked in 2016 and will not expire until December 31, 2022, they are reflective of the lowest prices for electricity experienced since the retail market was deregulated January 1, 2002. Generally speaking, there ought to be an expectation that the price of energy will climb marginally for each year of the contract term beyond two years. The possibility of locking-in energy prices at or below 4 cents per kWh for a period that terminates in seven years is truly remarkable based upon the history of deregulation. Meeting Date: February 23, 2016 Staff Contact: Clayton Fulton Exhibits: Yes City Secretary-1 - TCAP Contract - Staff Report The City has three contract options with TCAP. Option 1: This option results in fixed price for all usage regardless of the time of day. This option presents the greatest amount of predictability for electric rates and uses the fixed price as outlined above. Option 2: This option will provide the same fixed price as option 1 but limit that pricing for all on-peak usage with spot market pricing for off-peak usage. Spot pricing is variable and can change every 15 minutes. Therefore it is impossible to establish a specific price for spot pricing and savings cannot be guaranteed. This option subjects the city to the risk of increasing rates for off-peak usage, with market prices at historic recent term lows, both spot prices and fixed prices have fallen and their price differential has shrunk to the point that future savings from the spot market may not be as great as the risk of future price increases. Option 3: This option provides for the purchase of block power to cover the base use of all members selecting option three. Block power represents a firm commitment 24 hours a day and results in the cheapest form of energy on the wholesale market. Daytime peak consumption will be partly covered by a fixed price for solar with all other consumption supplied by the spot market. TCAP has indicated that with current prices about a half cent less than the price that existed when Option 2 was conceptualized last spring, it will be difficult for Option 2 to generate savings sufficient to justify its selection. Option 3 with its majority reliance on the cheapest form of energy has a greater probability than Option 2 of producing savings over Option 1. But again, with such low Option 1 fixed priced products now available to TCAP members and since there are no guarantees that Options 2 or 3 will produce significant savings, staff believes Option 1 provides the best choice. STAFF RECOMMENDATION: The attached Resolution authorizes the execution of a contract to purchase electricity through TCAP under Option 1. With the historic low rates and opportunity lock in the rate for 5 years this represents the safest commitment and insulates all usage from the risk of increased rates. In addition, the resolution would name the City Manager, Deputy City Manager, Finance Director, Mayor, Mayor Pro-Tem, and Deputy Mayor Pro-Tem as potential signers as the contract must be execute within 24 hours of the locking in the rate. Item No. 10 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: February 23, 2016 Staff Contact: City Manager Exhibits: N/A AGEN DA SUBJECT: 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: SUMMARY: 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). b.discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov’t Code §551.072); acquisition of right-of-way, easements, and land for municipal facilities. The Council further reserves the right to enter into closed session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. STAFF RECOMMENDATION: Item No. 11 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: February 23, 2016 Staff Contact: City Manager Exhibits: N/A AGEND A SUBJECT: Consider/Discuss/Action on any items listed on the posted agenda or any closed session occurring during this meeting, as necessary. SUMM ARY: STAFF RECOMMENDATION: Item No. 12 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: February 23, 2016 Staff Contact: City Manager Exhibits: None AGENDA SUBJECT: Adjourn SUMMARY: Item to adjourn the meeting. STAFF RECOMMENDATION: Staff recommends a motion to adjourn. YOUR} HOMETOWN CITY OF ANNA AGENDA NOTICE — CITY COUNCIL February 23, 2016 6:30 p.m. — Anna City Hall The City Council of the City of Anna will meet in Work Session at 6:30 p.m., on February 23, 2016 at Anna City Hall, located at 111 N. Powell Parkway (Hwy 5), regarding the following items: 1. Call to Order. 2. Roll Call and Establishment of Quorum. 3. Briefing and Discussion regarding City Hall debt. (Clayton Fulton) 4. Briefing and Discussion regarding Police department grant application. (Chief Jenks) 5. 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). b. discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); acquisition of right-of- way, easements, and land for municipal facilities. The Council further reserves the right to enter into closed session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 6. Consider/Discuss/Action on any items listed on the posted agenda or any closed session occurring during this meeting, as necessary. 1. The Council may vote and/or act upon each of the 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. 7. Adjourn. This is to certify that I, Carrie L. Smith, 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. February 19, 2016. Carrie L. Smith, City Secretary 1. The Council may vote and/or act upon each of the 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. CITY OF ANNA, TEXAS AGENDA SUBJECT: Roll call and establishment of quorum. SUMMARY: Mayor establishes a quorum STAFF RECOMMENDATION: Item No. WS 2 City Secretary's use only City Council Agenda Staff Report Date: February 23, 2016 Staff Contact: City Manager Exhibits: None CITY OF ANNA, TEXAS Item No. WS 3 City Secretary's use only City Council Agenda Staff Report Meeting Date: Staff Contact: Exhibits: February 23, 2016 Clayton Fulton No AGENDA SUBJECT: Briefing/Discussion regarding City Hall Debt SUMMARY: As staff have been working with our architects to determine preliminary design and site locations for a future City Hall, we have also been consulting with our financial advisors to evaluate potential debt scenarios as it relates to a new City Hall. With the recent action to authorize the purchase of the land for the new City Hall, staff have invited our financial advisors to discuss the impact of financing the $600,000 land purchase under a short term note to be repaid from future bond proceeds issued to construct the City Hall. STAFF RECOMMENDATION: None CITY OF ANNA, TEXAS Item No. WS 4 City Secretary's use only City Council Agenda Staff Report Meeting Date: February 23, 2016 Staff Contact: Chief Jenks Exhibits: AGENDA SUBJECT: Briefing regarding Police Department Grant Applications SUMMARY: Each Fiscal Year, we scan the various grant funding mechanisms to determine if we can compete for grants that are being offered through the NCTCOG, via the Governor's office, originating from the Federal Justice Assistance program. As you may recall, we applied for two grants last FY, one adding a School Resource Officer to the staff and one that would fund the salary and benefits for an officer to be assigned as a Child Abuse/Family Violence Detective. That Detective would replace the position we lost when we added patrol supervisors in November of 2014. We won the SRO grant, but not the additional Detective funding. For FY 2017 we identified two Grants that I recommend that we compete for. 1. Radio Upgrade: You may recall that we are being mandated by the Federal Government to upgrade from P25 Phase I radios to P25 Phase II radios. The cost to upgrade our current number of radios is estimated to be about $122k and without any grant funding, that amount would greatly impact the General Fund. We intend to apply for a grant that will give us approx $79k to assist us with this mandate. This grant would fund 13 portable radios with 1 extra battery each, 4 mobile radios, and 1 6-bank radio charger. If we get this grant, the General Fund will be impacted in the amount of approx $43k to fund the rest of the radio requirements. 2. Child Abuse/Family Violence Investigator: This JAG grant would, for 3- years, fund the salary and benefits of a Police Officer to work criminal cases involving those where the victims were children. Further, the Detective would specialize in the investigation of those offenses classified as family violence. If we were awarded this grant, the City will be responsible for funding the uniforms and equipment necessary for a new police officer position (approx $9,500) out of the General Fund and for the next two years, the cost would be minimal for items such as replacement uniforms, vehicle fuel, training tuition, etc. At the end of the three-year period, the budget submitted by the Police Department would include the full funding for this full-time, sworn, position. STAFF RECOMMENDATION: These Grants would help the City provide advanced law enforcement services to our citizens without bearing the full costs. Further, it allows us to recover state and federal tax dollars paid by our citizens and provide them with services that directly benefit them. If these projects are something the Council would like to see come to fruition, the staff will pursue these funding opportunities enthusiastically. Item No. WS 5 City Secretary's use only City Council Agenda Staff Report CITY OFANNA,TEXAS Date: February 23, 2016 Staff Contact: City Manager Exhibits: N/A AGENDA SUBJECT: 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: SUMMARY: 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). b. discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); acquisition of right-of-way, easements, and land for municipal facilities. The Council further reserves the right to enter into closed session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. STAFF RECOMMENDATION: CITY OF ANNA, TEXAS AGENDA SUBJECT: Item No. WS 6 City Secretary's use only City Council Agenda Staff Report Date: Staff Contact: Exhibits: February 23, 2016 City Manager N/A Consider/Discuss/Action on any items listed on posted agenda work session or any closed session occurring during this meeting, as necessary. SUMMARY: STAFF RECOMMENDATION: CITY OF ANNA, TEXAS AGENDA SUBJECT: Adjourn SUMMARY: Item to adjourn the meeting. STAFF RECOMMENDATION: Staff recommends a motion to adjourn. Item No. WS 7 City Secretary's use only City Council Agenda Staff Report Date: February 23, 2016 Staff Contact: City Manager Exhibits: None Y{OUR} HOMETOWN CITY OF ANNA AGENDA NOTICE — CITY COUNCIL MEETING February 23, 2016 7:30 p.m. — Anna City Hall The City Council of the City of Anna will meet in Regular Session at 7:30 p.m., on February 23, 2016, at the Anna City Hall, 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 turn it in to the City Secretary before the meeting starts. 1. Call to Order/Roll Call. 2. Invocation and Pledge of Allegiance. 3. Citizen comments. Citizens are allowed three minutes to speak to Council. 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 the 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 of the 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. Version 2/18/2016 3:12 PM 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 the City Council Minutes for February 9, 2016. (Carrie Smith) 6. Consider/Discuss/Action approving an ordinance regarding the annexation of a 21.4 acre tract of land located in the Hiram Brinlee Survey, Abstract No. 30 (St. Charles Apts. Inc., owner); a 47.6 acre tract of land located in the John Chambers Survey, Abstract No. 223 and the Samuel Craft Survey, Abstract No. 165 (Bhagat Holdings Ltd., owner); a 15 acre tract of land located in the Jonathan Douthit Survey, Abstract No. 251 (McGuffey Living Trust, owner); an 18.53 acre tract of land located in the William Kitchings Survey, Abstract No. A0505; and a 15.4 acre tract of land located in the W E Throckmorton Survey, Abstract No.A0899 (William & Nora Steward, owners). (Maurice Schwanke) 7. a. Public Hearing: For City Council to hear public comments regarding a request by Donald and Roxanne Terrell, and John and Ashley Vassilakos owners of the property, to re -plat lots 25, 26, and 27, Block A of the Pecan Hollow Subdivision. b. Consider/Discuss/Action approving a resolution regarding the re - plat of lots 25, 26, and 27, Block A of the Pecan Hollow Subdivision. (Maurice Schwanke) 8. Consider/Discuss/Action establishing regulations wells. (Joseph Johnson) 9. Consider/Discuss/Take approval of a contact (TCAP) (Clayton Fulton) regarding adoption of an Ordinance for the construction and/or drilling of water Action regarding a Resolution authorizing with Texas Coalition for Affordable Power 10. 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 1. The Council may vote and/or act upon each of the 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. 2 Version 2/18/2016 3:12 PM Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Government Code (Tex. Gov't Code §551.071). b. discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); acquisition of right-of- way, easements, and land for municipal facilities. The Council further reserves the right to enter into closed session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 11. Consider/Discuss/Action on any items listed on the posted agenda or any closed session occurring during this meeting, as necessary. 12.Adjourn. This is to certify that I, Carrie L. Smith, 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. February 19, 2016. Carrie L. Smith, City Secretary 1. The Council may vote and/or act upon each of the 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. 3 Version 2/18/2016 3:12 PM wu CITY OF ANNA, TEXAS AGENDA SUBJECT: Roll call and establishment of quorum. SUMMARY: Mayor establishes a quorum STAFF RECOMMENDATION: Item No. 1 City Secretary's use only City Council Agenda Staff Report Date: February 23, 2016 Staff Contact: City Manager Exhibits: None CITY OF ANNA. TEXAS AGENDA SUBJECT: Invocation and Pledge of Allegiance. SUMMARY: STAFF RECOMMENDATION: Item No. 2 City Secretary's use only City Council Agenda Staff Report Date: Staff Contact: ExhihitS- February 23, 2016 City Manager N/A CITY OF ANNA, TEXAS AGENDA SUBJECT: Citizen comments. SUMMARY: Item No. 3 City Secretary's use only City Council Agenda Staff Report Date: Staff Contact: Exhibits: February 23, 2016 City Manager N/A Citizens are allowed three 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. STAFF RECOMMENDATION: CITY OF ANNA, TEXAS AGENDA SUBJECT: Item No. 4 City Secretary's use only City Council Agenda Staff Report Date: Staff Contact: Exhibits February 23, 2016 City Manager N/A Receive reports from Staff or the City Council about items of community interest. SUMMARY: 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 the public health and safety of people in the municipality that has arisen after the posting of the agenda. STAFF RECOMMENDATION: CITY OF ANNA, TEXAS AGENDA SUBJECT: Item No. 5 City Secretary's use only City Council Agenda Staff Report Date: February 23, 2016 Staff Contact: City Manager Exhibits: Attached These items consists of non -controversial or "housekeeping" items required by law. Items may be considered individually by any Council Member making such request prior to motion and vote on the Consent Items. SUMMARY: a. Approve the City Council Minutes for February 9, 2016. (Carrie Smith) STAFF RECOMMENDATION: Staff recommends approval of the consent items. ANNA CITY COUNCIL MINUTES WORK SESSION February 9, 2016 The City Council of the City of Anna met in Work Session on the a Anna City Hall, located at 111 N. Powell Parkway (Hwy 5), regardirrA Call to Order. Mayor Crist called the meeting to order at 6:30 Roll Call and Establishment of Quorum. Mayor Mike Crist and Council Members JusfMlWr, Laur Lovato, John Beazley, Chad Barnes, Nathan Br1d101111Wk Dowd we jffresent. Briefing and Discussion (Maurice Schwanke) At Natural Springs PaAMINEEN11lt s an orse barn that is in good shape. The barn as wn i e a cture is open to the east and west. We would li utilize facility to securely store Parks department equipment out of th m ing would include: with beams, adding metal siding to match Metal siding around existing building and secure with oting on the exterior of the building. mezzanine from the interior to the building sed on the estimates from contractors that have looked at the project, we 11Wnticipating that the work would be less than $40,000. Once this project is tWhpleted, we are planning to remove the old wooden barn and current storage building located at Natural Springs Park. Within the Park Trust Fund Budget, $150,000 was allotted for Park Improvement projects. 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: February 9, 2016 CC Work Session Minutes 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 Chapter 551 of the Government Code (Tex. Gov't Code §551.071). discuss or deliberate the purchase, exchange, lease real property (Tex. Gov't Code §551.072); acquis' way, easements, and land for municipal facilitie discuss or deliberate personnel matters (T City Manager annual review. The Council further reserves the right to i time throughout any duly noticed m exception to the Open MeetingsjJjJN1&. MOTION: Council Member Ba p.m. Council Member Dowd sE Mayor Crist reconven Consider/Discus or any closed se City Secretary Carrie L. Smith rZ'1'e5ed session at 6:37 irried 7-0. ny items listed on the posted agenda ng during this meeting, as necessary. Barnes moved to take no action lion carried 7-0. �s moved to adjourn at 7:18 pm. Council Member n carried 7-0. Approved on the 23rd day of February, 2016. Mayor Mike Crist February 9, 2016 CC Work Session Minutes 2 ANNA CITY COUNCIL MINUTES REGULAR SESSION February 9, 2016 The City Council of the City of Anna met in Regular Session on the Anna City Hall, located at 111 North Powell Parkway (Hwy 5), tc following items. Call to Order/Roll Call. Mayor Crist called the meeting to order at 7:30 Mayor Mike Crist and Council Members Ju Barnes and Dick Dowd were present. Lau were absent. Invocation and Pledge of All Mayor Crist led the Invocation Citizen comments. is unable to respond section that are specific factual in 4 existing policy in res, at re wed 3 tes to speak. The Council s a at are brought up during this enda, o er than to make statements of response to a citizen's inquiry or to recite the inquiry. Recei reports fr Staff or the City Council about items of Comm interest. ems of community interest include: expressions of s, ratul s, or condolence; information regarding holiday sch les; ary or salutary recognition of a public official, public e yee, or other citizen (but not including a change in status of a person's public employment); a reminder about an upcoming event ganized or sponsored by the governing body; information regarding a cial, ceremonial, or community event organized or sponsored by an entity than the governing body that was attended or is scheduled to be att ded by a member of the governing body or an official or employee of the municipality, and announcements involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. February 9, 2016 CC Regular Session Minutes 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 the City Council Minutes for January 26, 2016. (Carrie Smith) 140 Review Quarterly Investment Report (Clayton Fulton) Approve a Resolution approving a Final Crossing Phase 2. (Maurice Schwanke) RESOLUTION NO. 2016-2-141 - A RESOLUTIi ANNA, TEXAS APPROVING A FINAL PLAT CROSSING PHASE 2. Approve a Resolution on a Final Pla (Maurice Schwanke) RESOLUTION NO. 2016 ANNA, TEXAS APPROVI PHASE 4. Approve a Resol Middle School. ►THE CITY OF NA CROSSING ndscape Plan for e calling for a May 7, 2016 General Election; Mwrvice Contract with Collin County; and Elewlion Agreement with Anna Independent rrie Smith) D CE 711-2016 - AN ORDINANCE OF THE CITY OF NA, RDERING A GENERAL ELECTION FOR MAY 7, 16 TO ELECT (3) THREE CITY COUNCIL MEMBERS AT -LARGE, THREE-YEAR TERMS; PROVIDING FOR RUNOFF ELECT N; PROVIDING FOR A JOINT ELECTION WITH COLLIN COUNTY ELECTIONS ADMINISTRATION AND ANNA DEPENDENT SCHOOL DISTRICT, DESIGNATING POLLING ACES AND PROVIDING FOR EARLY VOTING, NOTICE AND OTHER MATTERS RELATING TO SAID ELECTION. MOTION: Mayor Crist moved to approve Items a, b, c, d and f of the Consent Agenda. Council Member Barnes seconded. Motion carried 7-0. e. Approve a Resolution on a Site and Landscape Plan for Anna Middle School. (Maurice Schwanke) February 9, 2016 2 CC Regular Session Minutes RESOLUTION NO. 2016-2-143 - A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING A SITE PLAN AND LANDSCAPE PLAN OF THE ANNA MIDDLE SCHOOL ADDITION. MOTION: Mayor Crist moved to approve. Council Member Dowd seconded. Motion carried 7-0. 6. Consider/Discuss/Action regarding a Resolution author the City Manager to execute a Land Purchase Agreement wi hris and Jacque Cashdollar. RESOLUTION NO. 2016-2-144 - A RESOLUTIOA ANNA, TEXAS AUTHORIZING THE CITY MANA LAND PURCHASE AGREEMENT WITH CHR CASHDOLLAR FOR THE PURCHAS ^ PARKWAY. Council Member Barnes Motion carried 7-0. _ Consider/Discuss/Action proceedings and setting hearings for the voluntar located in the Jos acre tract of Ian acre tract of I in the acre tract of in th acre tract of I a Resol 11lffing Annexation e dates, ti and places for public nexation o 75.97 acre tract of land Survey bstract No. 856; a 32.84 �r ey, Abstract 822; a 73.47 :h Ro Survey, Abstract 760; a 20.7 urns Survey, Abstract 100; and a 60.04 Jonas Whitaker Survey, Abstract 98. LUTION 201W2-145 - A RESOLUTION ESTABLISHING 1 ATES, TI , AND PLACES FOR PUBLIC HEARINGS FOR LUNTAR NNEXATION OF A 75.97 ACRE TRACT OF LAND T SEP HLUTER SURVEY, ABSTRACT NO. 856; A 32.84 RE LAND IN THE HENRY SMITH SURVEY, ABSTRACT . 822; A 73.74 ACRE TRACT OF LAND IN THE ZACH ROBERTS BSTRACT NO. 760; A 20.7 ACRE TRACT OF LAND IN 4E PRRNS SURVEY, ABSTRACT 100; AND A 60.04 ACRE TRACT = LAND IN THE JONAS WHITAKER SURVEY, ABSTRACT 981. KA Slater Creek Road) Council member Dowd moved to approve. Mayor Crist Motion carried 6-0. Council Member Beazley abstained. 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: February 9, 2016 CC Regular Session Minutes 3 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). b. discuss or deliberate the purchase, exchange, lease, or value of property (Tex. Gov't Code §551.072); acquisition of rig ht-� easements, and land for municipal facilities. discuss or deliberate personnel matters (Tex. Gov't City Manager annual review. The Council further reserves the right to enter into c time throughout any duly noticed meeting under any to the Open Meetings Act. No executive session. Consider/Discuss/Action on any ite listeif5n the po d agenda or any closed session occurring d,110FRJ41111111ftWeetiggAMWcessary. MOTION: Council Member Member Lovato seconded. M 10.Adjourn. MOTION: Counc?%mbeJ5wd moved to adjourn at 7:44 p.m Member Burr seconlIRLMion carried 7-0. roved on the 23rd day of February, 2016. Mayor Mike Crist February 9, 2016 4 CC Regular Session Minutes CITY OF ANNA, TEXAS Item No. 6 City Secretary's use only City Council Agenda Staff Report Date: February 23, 2016 Staff Contact: Maurice Schwanke Exhibits: Yes. AGENDA SUBJECT: Consider/Discuss/Action approving an ordinance regarding the annexation of a 21.4 acre tract of land located in the Hiram Brinlee Survey, Abstract No. 30 (St. Charles Apts. Inc., owner); a 47.6 acre tract of land located in the John Chambers Survey, Abstract No. 223 and the Samuel Craft Survey, Abstract No. 165 (Bhagat Holdings Ltd., owner); a 15 acre tract of land located in the Jonathan Douthit Survey, Abstract No. 251 (McGuffey Living Trust, owner); an 18.53 acre tract of land located in the William Kitchings Survey, Abstract No. A0505; and a 15.4 acre tract of land located in the W E Throckmorton Survey, Abstract No.A0899 (William & Nora Steward, owners). SUMMARY: In November of 2010 the City Council accepted and approved non -annexation development agreements with Charles Apts. Inc. on 21.4 acres of Land, the Bhagat Holdings Ltd on 47.6 acres of land, the McGuffey Living Trust on 15 acres of land, and the Stewart William D & Nora Yvonne on 15.4 acres of land. Per the terms of the agreements, the respective owner are deemed to have properly filed with the City a petition consenting to voluntary annexation of the respective properties to be completed upon or after the end of the term. The property owners were notified of the proceedings. The mandatory two public hearings have been held by the City Council regarding the 99.4 of total acres described above located east of Sam Rayburn Memorial Hwy and east of FM 2862 (Bhagat tract), located northwest corner of the intersection of FM 2862 and FM 545 (McGuffey tract), located east of Sam Rayburn memorial Hwy at Collin County Outer Loop (St. Charles Apartment Inc. tract) and located northeast corner of the intersection of US 75 and Collin County Outer Loop (Stewart tract). A single family house exists on the Stewart tract and the remaining properties are vacant. STAFF RECOMMENDATION: Approval of Ordinance CITY OF ANNA, TEXAS ORDINANCE NO. AN ORDINANCE ANNEXING INTO THE CITY OF ANNA, TE HEREINAFTER DESCRIBED TERRITORY ADJACENT TO AND ADJOI CITY OF ANNA, TEXAS, TO WIT: BEING A CERTAIN AREA OF LAND THE HIRAM BRINLEE SURVEY, ABSTRACT NO. 30, THE JOH SURVEY, ABSTRACT NO. 223, THE SAMUEL CRAFT SURVEY ST 165, JONATHAN DOUTHIT SURVEY, ABSTRACT NO. 2 THE KITCHINGS SURVEY, ABSTRACT NO. A0505 AND THE HRO SURVEY, ABSTRACT A0899, COUNTY OF COLLIN, T AMENDING THE OFFICIAL CITY MAP; PROVIDING FOR VI REQUIRING THE FILING OF THIS ORDINANCE E IN CLERK; PROVIDING A CUMULATIVE REPEALE CLAUS - P SEVERABILITY; PROVIDING FOR ENGROS ENT E PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, certain property owners h; property annexed to the City of Anna; an WHEREAS, the City of Anna, County, Texas, created in Government Code and opera Texas and the City's Home WHEREAS, the City territory adjacent to wit: being a certa' the John Chamb 165, the Jonath I Abstract A05 Collin, ex D, w are i rpo municipality located in Collin lions of the Texas Local g legislation of the State of > into its corporate limits the hereinafter described ng City (hereinafter, referenced as the "Territory"), to sit in the Hiram Brinlee Survey, Abstract No. 30, act o. 223, the Samuel Craft Survey, Abstract No. ar y, Abstract No. 251, the William Kitchings Survey, E Throckmorton Survey, Abstract A0899, County of articularly described in the attached Exhibits A, B, C & in for all purposes; and poll notice requirements relating to the annexation of the Territory Chapter 43 of the Texas Local Government Code have been satisfied; and public hearings were conducted in accordance with Chapter 43 of the E)rnment Code to consider the annexation of the Territory; and HEREAS, said public hearings were conducted and held no more than forty (40) days Lless than twenty (20) days prior to the institution of annexation proceedings; and CITY OF ANNA, TEXAS ORDINANCE NO. PAGE 1 OF 4 WHEREAS, the City Council of the City of Anna, Texas ("City Council") has determined that it would be advantageous and beneficial to the City, its citizens, and the inhabitants of the Territory, to annex the Territory to the City; and WHEREAS, the City Council has determined that the Territory is adjacen adjoins the City; and WHEREAS, the City Council has investigated, determined and offici part of the Territory is within the extraterritorial jurisdiction of any oth or town; and WHEREAS, to the extent that this ordinance would cause an u entirely surrounded by the City's corporate limits, the Cit incorporates herein its finding —that surrounding the are WHEREAS, a service plan providing for the extens Territory, which was prepared prior to and made avai hearings, is attached hereto as Exhibit E and i WHEREAS, all procedures and proce( annexation of the Territory have been u the Texas Open Meetings Act, as applica WHEREAS, after hearing the of the Territory, the City Coug NOW THEREFORE ANNA, TEXAS: hat no hk city 0 �e Mes into the nentioned public purposes; and FT'rdinance and to the upon in accordance with Kuments against the annexation should be annexed; CITY COUNCIL OF THE CITY OF Section 1. Incoration of Iftere taIWFhe above -stated recitals are incorporated into this ordinance as set forth in for all purposes. described in Exhibits A, B, C & D, attached hereto and hereby made !4dinance, lying adjacent to and adjoining the present corporate ity,r is hereby added and annexed into the City, and the Territory be included within the corporate boundary limits of the City, and the iry limits of the City are altered and amended so as to include the :he corporate limits of the City. b) From and after the passage of this ordinance, the Territory shall be a part of the and, subject to the municipal service plan referenced in Section 4 of this o ance, the inhabitants thereof shall be entitled to all of the rights, privileges and immunities as all other similarly situated citizens of the City, and shall be bound by all of CITY OF ANNA, TEXAS ORDINANCE NO. PAGE 2 OF 4 the ordinances and regulations enacted pursuant to and in conformity with the general laws of the State of Texas. Section 3. Official City Map Amended. (a) The official map and boundaries of the City's corporate limits are h so as to include the Territory. (b) The City Manager is hereby directed and authorized to C�iN rfor r caul performed all acts necessary to update the official map of the add the hereby annexed as required by law, but any delay in or failure t ate s map in no way impact or affect the validity of this ordinance or this an do Section 4. Municipal Service Plan. The municipa pla the ritory, attached hereto as Exhibit E, was submitted in ac ance wi Ch 3 of the Texas Local Government Code and is hereby approv s p rdi nce. Section 5. Filing of Ordinance. The City S :)e s hereby dire d to file or cause to be filed a certified copy of this ordinan o my Clerk of Collin County, Texas, and any other necessary ncies Section 6. Cumulative Repealer. This dinanbe cumulative of all other ordinances and shall not repeal t ovsuch ordinances except for those instances where there dire on provisions of this ordinance. Ordinances, or parts thereo orce a e time this ordinance shall take effect and that are inconsistent with this o nce hereby repealed to the extent that they are inconsistent with this ordinance. Section 7. Sever ity. If ecarticle, paragraph, sentence, clause, phrase or word in this Ord' nce, or ap tion hereof to any person or circumstance, is held invalid or uncon tional by a urt of competent jurisdiction, such holding shall not affect the idit the rem g portions of the Ordinance, and the City Council hereby it ssed such remaining portions of the Ordinance despite suc ' alidity hich r g portions shall remain in full force and effect. Sfeftt and Enrollment. The City Secretary of the City of Anna is 'Cdso tengross and enroll this ordinance by copying the Caption in the sCity Council of the City of Anna and by filing this ordinance in the ocof the City. ction 9. Effective Date. This ordinance shall be in full force and effect from and after date of passage. CITY OF ANNA, TEXAS ORDINANCE NO. PAGE 3 OF 4 PASSED by the City Council of the City of Anna, Texas, this 231d day of February, 2016, by the following vote of the members of the City Council as present: ATTEST: APPROVED: City Secretary Carrie L Mayor Mike Crist CITY OF ANNA, TEXAS ORDINANCE NO. PAGE 4 OF 4 St. Charles Apartments, Inc. EXHIBIT A FIELD NOTES Being a 21.4 acre tract situated in Collin County, Texas, a part of the Hiram Brinlee Survey, Abstract No. 30 and being part of the tracts recorded in document number 2006082300 1212890 and 2006082300 1212860 of the Collin County Deed Records, and being more particularly described as follows: BEGINNING at the northwest corner of the aforementioned document number 2006082300 1212890 tract of land with said beginning also being in the south right-of- way line of the Sam Rayburn Memorial Highway (State Highway 121); THENCE along the Southeast right-of-way line of Sam Rayburn Memorial Highway, North 54 degrees 44 minutes 54 seconds East 706.17 feet to a point for corner and at a point of curvature in the right-of-way; THENCE along a curve to the left, subtended by an angle of 02 degrees 51 minutes 00 seconds and a radius of 11,519.16 feet, an arc length of 572.98 feet to a point for corner at a point of tangency on said Southeast right-of-way line; THENCE continuing along the Southeast right-of-way line of said Sam Rayburn Memorial Highway North 51 degrees 59 minutes 32 seconds East 818.90 feet to a point for corner; THENCE South 00 degrees 34 minutes 13 seconds West 569.97 feet to a point for corner; THENCE South 52 degrees 03 minutes 52 seconds West 462.75 feet to a point for corner in a curve to the right with a radius of 13,541.55 feet; THENCE with said curve to the right a distance of 595.07 feet and a chord bearing of south 53 degrees 19 minutes 24 seconds west a distance of 595.03 feet to a point for corner; THENCE South 54 degrees 44 minutes 54 seconds West 1,033.11 feet to a point for corner; THENCE North 01 degrees 03 minutes 10 seconds East 552.19 feet to the PLACE OF BEGINNING in the right-of-way line of Sam Rayburn Memorial Highway and containing 21.4 acres of land more or less; St Charles Apartments EXHIBIT A Location — East of Sam Rayburn Memorial Hwy at Collin County Outer Loop Exhibit B BEING a tract or parcel of land situated in the John Chambers Survey, Abstract No. 233 and the Samuel Craft Survey, Abstract No. 165, Collin County, Texas; and being part of that tract of land conveyed to Matthew Wade Hancock by Deed recorded in Volume 4304, Page 2449, Deed Records, Collin County, Texas, and being more particularly described as follows: BEGINNING at a 1/2 inch iron rod found in the East right-of-way line of State Highway 121 and the Northwest comer of a tract of land conveyed to Oliver Israel Boone by Deed recorded in Volume 1887, Page 867, Deed Records, Collin County, Texas; THENCE South 01 degree 10 minutes 01 seconds East, along the West line of said Oliver Israel Boone tract, a distance of 1,307.79 feet to point for corner; THENCE South 49 degrees 02 minutes 55 seconds West a distance of 1039.52 feet to a point for corner THENCE South 89 degrees 34 minutes 58 seconds West, a distance of 250.34 feet to a point for corner; THENCE South 89 degrees 06 minutes 08 seconds West, a distance of 912.43 feet to a point for corner: THENCE South 88 degrees 45 minutes 22 seconds West, a distance of 380.47 feet to a point for corner, said point being in the East right-of-way line of said State Highway 121; THENCE along the East right-of-way line of said State Highway 121 the following calls: THENCE North 48 degrees 16 minutes 08 seconds East, a distance of 1197.95 feet to a point for corner; THENCE North 53 degrees 58 minutes 46 seconds East, a distance of 100.50 feet to a point for comer; THENCE North 48 degrees 16 minutes 08 seconds East, a distance of 200.00 feet to a point for corner; THENCE North 45 degrees 24 minutes 23 seconds East, a distance of 200.25 feet to a point for corner; THENCE North 48 degrees 16 minutes 08 seconds East, a distance of 300.00 feet to a point for corner; THENCE North 51 degrees 50 minutes 43 seconds East, a distance of 400.78 feet to a point for corner, THENCE North 48 degrees 16 minutes 08 seconds East, a distance of 100.00 feet to a point for corner; THENCE North 41 degrees 08 minutes 38 seconds East, a distance of 201.56 feet to a point for corner, THENCE North 48 degrees 32 minutes 15 seconds East, a distance of 284.53 feet to a point for corner, THENCE North 68 degrees 51 minutes 08 seconds East, a distance of 80.28 feet to the Point of Beginning and Containing 47.6 acres of land, more or less. BHAGAT HOLDINGS LTD. 284.53' N 48d32'15" E 201.56' N 41 d8'38" E 100.00' N 48d 16'8" E w r `'-- 400.78' o N 51 d50'43" E a 1—v Q -'--- 300.00' 200.25' N 48d 16'8" E .�' N 45d24'23" E 200.00' N 48d 168" E 100.50' L -� N 53d58`46" E �' 47.6 ACRE TRACT N _ 912.43' S 89d6'8" W I 380.47' 250.34' S 88d45'22" W S 89d34'58" W EXHIBIT B Location — East of Sam Rayburn Memorial Hwy and east of FM 2862 EXHIBIT C SITUATED in Collin County, Texas in the Jonathan Douthit Survey, Abstract No. 251, in Collin County, Texas and being more particularly described by metes and bounds as follows: BEGINNING at a point in the intersection of the north right-of-way line of F.M. 545 and the west right-of-way line of F.M. 2862 and at the most southerly and westerly part of a corner clip of said intersection; THENCE north 88 degrees 32 minutes 59 seconds west a distance of 763.32 feet with the north right-of-way line of F.M. 545 to a point for corner; THENCE north 01 degrees 27 minutes 01 second east a distance of 796.82 feet to a point for corner; THENCE south 88 degrees 32 minutes 59 seconds east a distance of 830.70 feet to a point for corner in the west right-of- way line of F.M. 2862; THENCE south 02 degrees 42 minutes 00 seconds west a distance of 747.01 feet with said west right-of-way line of F.M. 2862 to a point for corner; THENCE south 47 degrees 04 minutes 31 seconds west 71.48 feet with the said corner clip to the PLACE OF BEGINNING and containing 15 acres of land more or less. 0 200 400 600 EXHIBIT C Location — Northwest corner of the intersection of FM 2862 and FM 545 0111MI ■ ■ ■ ■ a _ MCGLJWFEY f EXHIBIT D FIELD NOTES Being a 15.4 acre tract of land situated in Collin County in the W.E. Throckmorton Survey, Abstract Number 899. Said tract also being all of a tract of land as recorded in Volume 4632 Page 2242 of the Deed Records of Collin County Texas and a part of the tract recorded in Volume 4555 Page 1267 of the Deed Records of Collin County Texas and being describe more particularly as follows: BEGINNING at a point that bears South 3 degrees 5 minutes 20 seconds West a distance of 40.01 feet from the starting point of the said tract of land recorded in Volume 4555 Page 1267, said point also being in the east right-of-way line of U.S. Highway 75; THENCE; South 88 degrees 12 minutes 15 seconds East, a distance of 476.64 feet to a point for corner; THENCE; South 00 degrees 12 minutes 44 seconds West, a distance of 958.81 feet to a point for corner; THENCE; North 89 degrees 22 minutes 43 seconds East, a distance of 58.40 feet to a point for corner; THENCE; South 40 degrees 43 minutes 23 seconds East, a distance of 194.42 feet to a point for corner; THENCE; South 01 degree 14 minutes 04 seconds West, a distance of 19.44 feet to a point for corner; THENCE; South 43 degrees 10 minutes 41 seconds West, a distance of 233.63 feet to a point for a corner; THENCE; South 73 degrees 45 minutes 48 seconds West, a distance of 89.68 feet to a point for corner; THENCE; South 40 degrees 25 minutes 26 seconds West, a distance of 63.46 feet to a point for a corner; THENCE; North 59 degrees 17 minutes 11 seconds West, a distance of 459.15 feet to the East line of U. S. Highway Number 75 as described in deed to the State of Texas, filed 14 June 1965, and recorded in Volume 654, Page 633 of said Deed Records for a point for corner; THENCE; North 00 degrees 27 minutes 35 seconds East, with the East line of said highway, a distance of 7.49 feet to a point for corner; Stewart, William D & Nora Yvonne THENCE; North 00 degrees 37 minutes 16 seconds West, with the East line of said highway, a distance of 578.32 feet to a point for corner; THENCE; North 03 degrees 05 minutes 20 seconds East, with the East line of said highway, a distance of 564.18 feet to the POINT OF BEGINNING and containing 15.4 acres of land more or less. Stewart, William D & Nora Yvonne William & Nora Stewart 4U.Ul' J Sao zu POB LO Q T �� �r V_ 2 7.49' N Od27'35" E 2'43" E 42' S 40d43'23" E 19.44' S 1 d 14'4" W 18" W Xni EXHIBIT D Location — Northeast corner of the intersection of US 75 and Collin County Outer Loop EXHIBIT E ANNEXATION SERVICE PLAN POLICE PROTECTION On the effective date of annexation, the City of Anna, Texas and its Police Department will provide police protection to the newly annexed area at the same or similar level of service now being provided to other areas of the City of Anna, Texas with similar topography, land use, and population density within the newly annexed area. FIRE PROTECTION On the effective date of annexation, the City of Anna, Texas and its Fire Department will provide fire protection to the newly annexed area at the same or similar level of service now being provided to other areas of the City of Anna, Texas with similar topography, land use, and population density within the newly annexed area. EMERGENCY MEDICAL SERVICES On the effective date of annexation, the City of Anna, Texas, through its contract with Collin County or another service provider, will provide emergency medical services to the newly annexed area at the same or similar level of service now being provided to other areas of the City of Anna, Texas with similar topography, land use, and population density within the newly annexed area. SOLID WASTE COLLECTION On the effective date of annexation, the City of Anna, Texas, through its contract with Bradshaw and Son or another service provider, will provide solid waste collection to residents and businesses in the newly annexed area (to the extent that the service provider has access to the area to be serviced) at the same or similar level of service now being provided to other areas of the City of Anna, Texas with similar topography, land use, and population density within the newly annexed area. Such service will be provided in accordance with existing City policies and Ordinances, and only upon payment of any required deposits and the agreement to pay lawful service fees and charges for solid waste collection. Residents and businesses of the newly annexed area that have existing contracts with solid waste service providers have two years from the date of annexation or until the termination date of the existing contract, whichever is sooner, to begin solid waste Page 1 of 4 collection service through the City. Solid waste collection is mandatory for City of Anna residents and businesses operating within the city limits. WATER AND WASTEWATER FACILITIES On the effective date of annexation, any and all water or wastewater facilities owned by the City of Anna, Texas at the time of annexation shall be maintained and operated by the City of Anna, Texas. Of such facilities, the City will maintain the water distribution and wastewater collection main lines. All water and wastewater service lines, shall be maintained by the property owner served by the service connection. Residents and owners of property in newly annexed areas that are located within the City's water or wastewater CCN will be offered water and wastewater service in accordance with City policies and ordinances in existence at the time of annexation or as may be amended from time -to -time by the City Council. Generally, these ordinances state that the land owner or customer must bear the cost of construction of water and wastewater system facilities to a point where suitable connection to the existing system can be made and service to the customer can be provided. All water and wastewater facilities designed to connect to the City's existing system must be approved by the City and meet all City zoning, subdivision, and other development ordinances and requirements. The City may decline to provide water or wastewater service in areas already receiving such services from another duly certificated services provider. ROADS AND STREETS On the effective date of annexation, any and all existing public roads or streets in the newly annexed area which have been dedicated to Collin County, Texas or to the City of Anna, Texas, or which are owned by the City of Anna, Texas shall be maintained to the same degree and extent that other roads and streets are maintained in areas of the City with similar topography land use and population density. Specific maintenance activities are determined by available funding and the need for maintenance as determined by the City. The City is not obligated to maintain any portion of a private road or street. Any and all lighting of roads and streets which may be positioned in a public right of way, roadway or utility company easement shall be maintained by the applicable utility company servicing that area of the City of Anna, Texas pursuant to the rules regulations and fees of such utility. An owner of land within the newly annexed area that desires to develop said property will be required pursuant to the ordinances of the City of Anna, Texas to provide internal and peripheral streets and to construct those streets in accordance with the specifications required by the City of Anna, Texas. Page 2 of 4 PARKS PLAYGROUNDS AND SWIMMING POOLS OR ANY OTHER PUBLICLY OWNED FACILITY BUILDING OR SERVICE The City Council of the City of Anna, Texas is not aware of the existence of any public parks, public playgrounds, public swimming pools, or any other publicly owned facility, building or service now located in the area proposed for annexation. In the event any such parks, playgrounds, swimming pools, or any other public facilities, buildings or services do exist and are public facilities, the City of Anna, Texas, upon acquisition of such facilities at no cost to the City of Anna, Texas, will maintain such areas upon annexation to the same extent and degree that it maintains public parks, public playgrounds, public swimming pools, other public facilities buildings or services and other similar areas of the City now incorporated in the City of Anna, Texas. OTHER MUNICIPAL SERVICES Following annexation by the City of Anna, Texas, the City will provide code enforcement, planning, and animal control services to the newly annexed area, to the extent such services are funded in the annual budget and provided by the City within its full -purpose boundaries. Such services will be provided to the newly annexed area at the same or similar level of service now being provided to other areas of the City of Anna, Texas with similar topography, land use, and population density within the newly annexed area. CONSTRUCTION OF CAPITAL IMPROVEMENTS The City Council of the City of Anna, Texas finds and determines it to be unnecessary to acquire or construct specific capital improvements for the purposes of providing full municipal services to the newly annexed area. The City Council finds and determines that it has at the present time adequate facilities to provide the same type, kind and level of service which exists in and is presently being administered to other areas already incorporated in the City of Anna, Texas with the same or similar topography, land use and population density. SPECIFIC FINDINGS The City Council of the City of Anna, Texas finds and determines that this proposed Service Plan will not provide any fewer services and it will not provide a lower level of service in the area proposed to be annexed than were in existence in the proposed area at the time immediately preceding the annexation process. Furthermore, the City Council of the City of Anna, Texas finds and determines that the rural nature of the area is characteristically different from other more highly developed areas within the corporate limits of the City of Anna, Texas. Consequently because of the differing characteristics of topography, land use, and population density the service levels which may ultimately be provided in the newly annexed area may differ somewhat from Page 3 of 4 services provided in other areas of the City of Anna, Texas. These differences are specifically dictated because of differing characteristics of the property. The City of Anna, Texas will undertake to perform consistent with this service plan so as to provide this newly annexed area with the same type, kind and quality of service presently enjoyed by the citizens of the City of Anna, Texas who reside in areas of similar topography, land use and population density. TERM This Service Plan shall be valid for a term of ten (10) years. Renewal of the Service Plan shall be at the discretion of the City Council. AMENDMENTS This Service Plan may be amended if the City Council determines at a public hearing that changed conditions or subsequent occurrences make this Service Plan unworkable or obsolete. The City Council may amend the Service Plan to conform to the changed conditions or subsequent occurrences pursuant to Texas Local Government Code, Section 43.056. Page 4 of 4 CITY OF ANNA, TEXAS Item No. 7 City Secretary's use only City Council Agenda Staff Report Date: February 23, 2016 Staff Contact: Maurice Schwanke Exhibits: Yes. AGENDA SUBJECT: a. Public Hearing: For City Council to hear public comments regarding a request by Donald and Roxanne Terrell, and John and Ashley Vassilakos owners of the property, to re -plat lots 25, 26, and 27, Block A of the Pecan Hollow Subdivision. b. Consider/Discuss/Action approving a resolution regarding the re -plat of lots 25, 26, and 27, Block A of the Pecan Hollow Subdivision. SUMMARY: A re -plat has been received on approximately 4.003 acres of land that is located in the Pecan Hollow Subdivision. The purpose of the re -plat is to take three (3) existing lots and turn it into two (2) lots. Under the Local Government Code if lots are being re -platted and they were zoned or had deed restrictions for not more than two residential units per lot a public hearing and notices are required to be sent out prior to approval. The subdivision is located in Anna's ETJ west of FM 455 and the lots are located in the southwest corner of the subdivision. The subdivision does have deed restrictions. Notices were mailed out to property owners, within the 200 ft. We received one property owner response back with no opposition regarding the proposed re -plat. STAFF RECOMMENDATION: Approval of Resolution CITY OF ANNA, TEXAS RESOLUTION NO. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING A RE -PLAT OF LOTS 25, 26, AND 27, BLOCK A OF PECAN HOLLOW SUBDIVISION. WHEREAS, In order to provide for the orderly development of land within the and extraterritorial jurisdiction, the City Council of the City of Anna, Texas the has adopted Part III -A of the Anna City Code of Ordinances ("Subdivisio g WHEREAS, Donald and Roxanne Terrell, and John and Ashley V an application for approval of the re -plat of lots 25, 26, and 27, BId Subdivision; NOW THEREFORE, BE IT RESOLVED BY THE Cl ANNA, TEXAS, THAT: Section 1. Recitals Incorporated. The recitals above are incorporated herein a Section 2. Approval of Re -Plat After prescribed Public Hearing and lots 25, 26, and 27, Block A of thej PASSED AND APPROVED of February, 2016. 0 a city limit3 Council") " and OF `,il hereby approves the re -plat of attached hereto as Exhibit 1. ncil of the City of Anna, Texas, on this 23rd, day APPROVED: mayor, MIKe unst a, 2, ------------------------------ � Inl N �YP[cHOLLOWa. 11ioz I I LOT #' It 1,2D5 ACRES �i k 52.478 sD. NJ ul i b olzo a II LOT 271? g 1.798 ACRES n 3 u ai1IIy 1216074 S0. FT. L\ la�! W�LNp101 t�� / b / LOW ihb aROrowd eaMoel b ea PlelM.a anM,vwoo. ,va°. anJ n/Wafan/ a1 IM ah e/ Mm. Tuw. M11F55 my bead MN Mo _ day of 201R AMn var.z« AoYy VmNaHo - H P 101- i o°toAulrtrn caux tOt. G 102 i WORE na. Do wM.Wnod auMerey Hefary M M wM for 1M emN of Te7ar, I , IFN dry OenayJ°1mW1. kroan b nie b 6° Xw pxaai aMe° b 1hs upbnp Mahu f wM GoLmawkdw Ik°Nod far Ma W'Ma and ewuldwadpe IFiapuW. 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PmiY. /5050M1lOJ. dalad June t. o3a0a0b01. yaN InuMeNen byMeIN aim,"l "Sam 000awwa4, No 1ma fined olxaflana dafNmm"m Zale 'X' - aArama OaNrmmW N Ga aufaMe 1M 0.2 x ermuel ahaaa fbadplem.a Mfy *xxa*l� Bon of underprovnd OlflllNa J. eaarinPo saw sn raeeMW Pal of Pacon Hallow (Vela N. Po' 101-102), HEALTH Or1AglYfiR CERIHICATIONf 1 harMY aerHry Mal fhe en-aNa weapa /oeBBNe daeefl4ed an we play fe7m b Me appMalle OSS/' bee of Me SbN of T�Xaa Mal NN am M Nila�°en-� Su6millb�n�Opa �aMINa� a�: In IM SURVEYOR: Boundary Solutlona P.O. Box 250 Caddo Mills, 7X 214-499—B472 OWNERS: Donald &Roxanne Terrell Revocable Trust Po Box Melissa, TX 73454 X T John k Ashley Vassilakos 292 Pecan Hollow Anna, TX 75409 ri7f'ir I /"�°'ay"i°r�.a of d°7 ay Nam' rasa ar RE -PLAT LOT 25R & 27R REPEAT OF LOTS 25-27 PECAN HOLLOW JOHN ROWLAND SURVEY, A-784 COLLIN COUNTY, TEXAS NUMBER OF LOTS: 2 TOTAL ACREAGE: 4.003 ACRES rMll SOIR u6m /"�°'ay"i°r�.a of d°7 ay Nam' rasa ar RE -PLAT LOT 25R & 27R REPEAT OF LOTS 25-27 PECAN HOLLOW JOHN ROWLAND SURVEY, A-784 COLLIN COUNTY, TEXAS NUMBER OF LOTS: 2 TOTAL ACREAGE: 4.003 ACRES rMll SOIR u6m 1-1 SITE COLLIN COUNTY ADVENTURE CAMP 3 Please publish the attached in the legal section of the newspaper at the earliest possible date. Please send tear sheet, publisher's affidavit, and bill to the City of Anna. CITY OF ANNA PUBLIC HEARINGS ON THE RE -PLAT OF PECAN HOLLOW SUBDIVISION A public hearing will be conducted by the City Council of the City of Anna on Tuesday, February 23rd, 2016 at 7:30 p.m. at Anna City Hall located at 111 North Powell Pkwy (Hwy 5) Anna, Texas, to hear public comment regarding the re -plat of Pecan Hollow Subdivision. The owner(s) of the tracts have petitioned the City of Anna to re -plat lots 25, 26, and 27, Block A of the Pecan Hollow Subdivision located in Anna's ETJ west of FM 455. The purpose of the re -plat is to take three (3) existing lots and turn it into two (2) lots. Your attendance and comments on the request are welcomed. Persons unable to attend the hearing may submit their comments in writing to the City Secretary, PO Box 776, Anna, TX, 75409 or through personal deliver at the Anna City Hall, 111 N. Powell Parkway, (Hwy 5) Anna, TX, 75409 two working days prior to the meeting. PROPERTY OWNER RESPONSE FORM ❑ I favor the proposed re -plat of Pecan Hollow Subdivision ❑ I oppose the proposed re -plat of Pecan Hollow subdivision I have no opinion regarding the proposed re -plat of Pecan Hollow Subdivision Reasons) for above opinion: lY �ll�/l L.fxlX� Signature Address (StreedRoad, City, Zip) Please return form to: City of Anna Planning and Development Department POB 776 (or 3223 N. Powell Parkway, if hand delivered) Anna, TX 75409 Or bring form to public hearing (meeting time and place attached) CITY OF ANNA, TEXAS Item No. 8 City Secretary's use only City Council Agenda Staff Report Meeting Date: Staff Contact: Exhibits: February 23, 2016 Joseph Johnson Attached. AGENDA SUBJECT: Consider/Discuss/Action regarding adoption of an Ordinance establishing regulations for the construction and/or drilling of water wells. SUMMARY: It is prudent to take steps through regulation, permitting, and inspection, to ensure that private wells are properly constructed and that there is a complete physical separation between a private non -potable water source and the City's potable water system when private wells are constructed, maintained, or reconstructed. The proposed regulations would reduce or eliminate potential contamination of the public water system due to improper construction or incorrect location of a private well. The inspections and permitting required would ensure compliance with the Texas Department of Licensing and Regulation (TDLR), Texas Well Drillers Act regulations, the City's adopted electrical and plumbing codes, as well as proper setbacks from property lines, buildings, or potential contaminating sources. STAFF RECOMMENDATION: Staff recommends approval of the proposed ordinance. CITY OF ANNA, TEXAS ORDINANCE NO. (Water Well Drilling) AN ORDINANCE OF THE CITY COUNCIL OF ANNA, TEXAS, AM NG THE CITY'S CODE OF ORDINANCES, ARTICLE 49, PUBLIC RKS, SECTION 2.17, WELL DRILLING; ESTABLISHING NEW R UL ONS FOR THE CONSTRUCTION AND/OR DRILLING OF W S; PROVIDING FOR INCORPORATION OF PREMIS PROVID FINDINGS; PROVIDING FOR AMENDMENT TO e0LAUSI; E O ORDINANCES; PROVIDING FOR A CUMULATIVE R PROVIDING FOR SAVINGS; PROVIDING FOR SEVERABVIFOR PUBLICATION; PROVIDING FO�ROND ENROLLMENT; AND PROVIDING AN EFFEC DATE._ WHEREAS, the City of Anna is a Home Rule l�ality Io ed in Collin County, Texas, created in accordance with the provisi e Texas Loc overnment Code and operating pursuant to the enabling legisla ' to and the City of Anna, Texas Home -Rule Charter; and WHEREAS, the City Council has i best interest of the City of Anna, T (i for the construction, location an Jurisdiction (ETJ); and WHEREAS, the City construction, location and/or d same is connected help protect the h r,saNfe NOW, THERE TEXAS: gated jiitants termined that it would be in the and itto amend its regulations haterwhin Anna and its Extraterritorial that establishing regulations relating to the ter wells and water systems in Anna and its ETJ, if I to Anna's approved distribution system, or will of the citizens of Anna; and NED BY THE CITY COUNCIL OF THE CITY OF ANNA, regoing premises are true and correct and are incorporated herein for all purposes. After due deliberations the City Council ha: inance is in the best interest of the City of Anna, welfare. CITY OF ANNA, TEXAS ORDINANCE NO. concluded that the adoption of this Texas and of the public health, safety PAGE 1 OF 10 Section 3. Amendment. That Article 49, Section 2.17, Well Drilling, of the Anna City Code of Ordinances ("Anna Code") is hereby amended to wholly delete its current content and replace same with the following: w 2.17 Well Drilling (a) For the purpose of this section 2.17, the following definitions sh context clearly indicates or requires a different meaning: 4 Approved Water Supply Source. The City's potable water Approved Distribution System. The City's complex of procedures designed to receive, store, maintain, disti water between the point of receipt into the City's syst users. Air Gap. The unobstructed vertical distan lowest opening from any pipe or faucet c or other assembly and the flood level rirr� separation must be at least twice the dear than 1.0 in. AOL Auxiliary Water Supply. Any including water from anoth4 not limited to, wells, cisterns, Backflow. The other substanc other than the App prer Pull re B Ljffhods, and w of potable issue to end 4kjjjdPFhere between the a fixture, receptor, sink, The vertical, physical supply outlet, but never less FeTWIPMothe Approved Water Supply Source, supply or from a natural source including, but vers, streams, used waters, or industrial fluids. or mixtures of water and other liquids, gases or pes of a potable water supply from any sources ►1 n assembly which, when properly installed between the rd at or near the point where the supply source enters the is Ordinance the only approved assembly shall be a Assembly ("RPBA"). BAMowsemblyTester. An individual licensed in accordance with Texas om non Environmental Quality ("TCEQ") rules, as amended, for the purpose of ing Mftflow Prevention Assemblies. he City of Anna, Texas and its duly authorized representatives. city Engineer. A registered Professional Engineer in the State of Texas or a Consulting Engineer providing authorized services to Anna. ntamination. An impairment of the quality of the Approved Distribution System or a p ate auxiliary water supply by the introduction or admission of any foreign substance that degrades the quality and which creates an actual or potential hazard to the public CITY OF ANNA, TEXAS ORDINANCE NO. PAGE 2 OF 10 health through poisoning or through the spread of disease by sewage, industrial fluids, or waste. Cross -Connection. A point in the plumbing system where the Approved Distribution System is connected directly, or has the potential of being connected, to an outsi source or substance that is not part of the Approved Distribution System. This E may be temporary or permanent, potential or actual, indirect or direct. Director of Public Works. Person or other designated authority charged with administration and enforcement of this Ordinance. Domestic Use. A well providing potable water or other material di y to a emi Existinq Work. A well or water system which had been installe r to ffective of this Ordinance. Extraterritorial Jurisdiction or ETJ. The area outside of71aw,,.,� rpora its prising the City's extraterritorial jurisdiction as determined by Health Hazard. A cross -connection, potential contam 7arAlsother situation involving any substance that can cause death, NbeenoMeberhuman spredease or has a probability of causing such effects if introdpibution system. Non -Potable water. A water supply that noconsumption by a regulating person. Overhaul. Work performed on a Person. Any individual, firm, goers organization of any kind. consideM routine maintenance. tion, company or Physical Separation. A physi r r means of division between an approved distribution system a ivat ribution system, with the minimum distance between systems being 12 ' e to any liquid or gas well and distribution system. PlumbingIns r. Any pers ire Anna for the purpose of inspecting work and installation in c ection with h Ith and safety laws as provided in, or referred to in this ordinance. Such son shall e a valid license by the Texas State Board of Plumbing Exami BP acco ce with the Texas Plumbing License Law (Texas Occ ion e § et seq., as it exists or may be amended.) supply that has been approved for human consumption by a )perty. Any property real, improved or personal, that is connected to the bution System. Mmises Isolation. The practice of protecting the approved distribution system by stalling a backflow prevention assembly at or near the point where liquid or gas enters e premises. Wig Sewer. A pipe which carries wastewater, storm or surface water and groundwater controlled by the City. CITY OF ANNA, TEXAS ORDINANCE NO. PAGE 3 OF 10 Reduced Pressure Backflow Assembly (RPBA). An assembly containing two independently acting approved check valves together with a hydraulically operating, mechanically independent pressure differential relief valve located between the check valves and at the same time below the first check valve. The assembly includes pro erly located resilient -seated test cocks and two tightly -closing resilient -seated shuto each end of the assembly. Regulatinq Person. Quality (TCEQ) or his/her designee. Septic Tank. A watertight receptacle which receives the disch part thereof, which is designed and constructed so as to sepa digest organic matter through a period of detention, and allow the soil outside of the tank through a drain field, disposal or p( Service Connection. The terminal end of a service con Distribution System (i.e., where the retail water provi control over the water at its point of delivery to the cu installed at the end of the service connection, then the downstream end of the meter. 1 Testinq or Reportinq Deficiencies. Incom test results or reports filed with the City gauges, or the use of improper operation Water main. A water-distribu Water Purveyor. The opi connections or servicing Wells. Bored wells, d which are used to A (b) Licensing Conse a val' di The Executive Director of the Texas Commission on E Wnmental ;tersanitary f a meter is on shall mean the w prevention assembly use of inaccurate wat-e"?T5fem supplying at least 15 service uals at least 60 days out of the year. ed wells developed into the underground soils, d or gas from the underground soils. Offormed only by an insured and bonded company holding ed by the State of Texas. The license number shall be at the site of the work. The number shall be clearly legible f hen d public roadway. Well drillers must hold a current contractor egN h yand be in good standing. In addition, the approved permit issued ll be displayed during construction at the site of the work and remain on s inspection is obtained. ec)Permits and Inspection (1) When Permit Required. It shall be unlawful to construct a well or to overhaul a well without first securing a well permit from the City. CITY OF ANNA, TEXAS ORDINANCE NO. PAGE 4 OF 10 (2) When Permit Not Required. Permits are not required for routine maintenance of preexisting wells, as determined by the City Engineer or Director of Public Works or his or her designee. It is the well driller's responsibility to notify the City Engineer or Director of Public Works or his or her designee of routine maintenance so a determination may be made on whether or not a required. (3) Permits Not Transferable. Each permit issued under this ordin shall be personal to the permittee. No such permit shall be assign r tr rred to another person, and no person shall permit another per to obtai ermi in his or her name or permit any new well constructio overh I wo performed under his/her permit other than a perso thoriz do the same. (4) False Statement or Bad Faith. Any person statement in order to obtain a permit shall g subject to the penalty provided herein. B fait performance of work under this ordinance for suspension of the permit of th riller s permit shall be issued until su ait been corrected. Well drillers i iolation o registration requirements ma e suspende revoked. guilty I will ak false of a mis or and h ona delay in the deem a sufficient reason 0 offendi and no further sonable delay has o ce governing contractor r have their registration (d) Issuance of Permit The Building Official or r her d gnatec�resentative, shall issue all permits in accordance with the pro ns a equirements of this Ordinance. Incomplete applications shall be rejec nied. All applications for permits shall be on the City of Anna's appro ati rm and provide the following information: (1) Co y name, res d telephone number of the well driller; (2) Wel rillers license mber and Anna assigned contractor registration phone number of property owner and legal description of me and Anna assigned contractor registration number of itractor; ompany name and Anna assigned contractor registration number of IWmbing contractor; (6) Company name and Anna assigned contractor registration number of irrigation contractor (if applicable); (7) Company name and Anna assigned contractor registration number of back flow prevention assembly tester; CITY OF ANNA, TEXAS ORDINANCE NO. PAGE 5 OF 10 (e) (8) Plan, specifications, manufacturer's cut sheets and diagrams in sufficient detail to allow the reviewing person to determine whether a proposed well meets the minimum standards as determined by this ordinance and all other local, state and federal regulating agencies; (9) A plan of the property that shows the location of the proposed wel buildings, septic tanks, drain fields and other significant structur he plan shall also show the location of structures and adjacent propert ithin ten (10) feet of the property line; (10) Documentation indicating approval of the construction e well by t o Texas Groundwater Conservation District and the T Dep ent o Licensing and Registration; (11) Detailed description of what the well will be uJr. a (12) Any other information deemed necessarye City. Every permit issued under the provisions of 's ord��e shall ire ninety (90) days after the date issued. In every case wh is ex . ed ew permit shall be obtained before any work is resumed. (f) Inspections and Tests The City Engineer or Director at any time, to enter the pr compliance with this ordi c Works or their designe a future for the purpose of i other deficienciesonsiclatio attempted pri ("GFCI") rec allow for maI blid orks or th esignees shall have the right, he s spect a well and ensure In ition, y Engineer or Director of Public ha e right to enter the property at any time in the to ensure that there are no cross -connections or easonable notice to the property owner will be roperty. A 120v Ground Fault Circuit Interrupting >ta immediately adjacent to the well equipment to the equipment or the use of a freeze protection device. inspections shall be required on all wells drilled within = to verify initial Plurfi` "1 Winal - to verify the required physical separation of the private system from the approved City -owned potable water distribution system, as C l as the completed connections to the well and private distribution tem(s); (3) Electrical Underground (EUG) - to verify trench depth and proper wire is used (size & type); (4) Electrical Final - to verify disconnects are installed and appropriate panel box in place (weather tight); CITY OF ANNA, TEXAS ORDINANCE NO. PAGE 6 OF 10 (5) Upon completion of the well, the well driller shall furnish the City Engineer, Public Works Director or his/her designee with a copy of the driller's report and a copy of the water analysis. Any well that is not completed shall be sealed and considered a plugged or an abandoned well in accordance witl the rules, regulations and statues of the State of Texas; (6) A Backflow Assembly Test Report, on a City approved form, s submitted. Thereafter the test report shall be completed annw twelve months from the last test. Only a state licensed, Cit,i&e Backflow Prevention Assembly Tester (BPAT), shall pe t (g) Construction Requirements (5) Casing. A casing of steel or other approved materia prevent caving of the formations penetrateC the liquid or gas supply from contaminatio The wall shall be cased from the bottom inches above the finish grade or more if rentering casing. The well casing shall be c protect the underground water frindIIIIIIIIII1111111hfrom poter resulting from surface water j ividua te` tanks). Well seal. The annular shall be sealed with above the liquid o the ground with nc twenty-four (24 eE protrude six (6) in the casi�toD thin Von of strata. four (24) ter from and sealed to ntamination systems (i.e. septic ac tween the d ed hole and the well casing to out for pth of at least ten (10) feet cin . The casing shall be covered at b no e an twenty-four (24) inches by elve (12) inches. The top of the slab shall )ve finished grade and shall be sloped away from casing shall be provided with a suitable well seal to e well. If a vent is provided on the casing, it shall urned downward and screened with a 16-mesh eJand Equipment. Upon completion of the well, but before ice, the well and equipment shall be disinfected by the use ered, tablet or solution). les. After the chlorine has been flushed, a sample of water shall e analvyztd for purity. If used for human consumption, the well shall not be laced into service until the water has been tested and found to be suitable for hLman consumption. Abandonment of Wells. Permanently abandoned wells shall be filled with cement grout or concrete. Abandoned wells shall not be used for the disposal of wastewater, septic tank effluent or other wastes. CITY OF ANNA, TEXAS ORDINANCE NO. PAGE 7 OF 10 (6) Screening. The substance bearing formation shall be screened to control, among other similar conditions, the flow or production of sands and formation materials. (h) Applicability of Other Regulations The regulations of the North Texas Groundwater Conservation District, Texa of Licensing and Registration, and Chapter 1901 of the Texas OccupatioA existing or as may be amended and as they pertain to the construction f and are hereby incorporated into this Ordinance and must be strictly plie extent of any conflict between this ordinance and any of the other ation: in this paragraph, the stricter regulation shall govern to the exte the c9J (i) Domestic Use No well shall be used to supply any liquid or gas to a p direct connection to the City's approved distribution s)J Q) Irrigation Use Any irrigation water well must be constructed i ordinance. No irrigation water well shall be irrigation water well shall be shared witho 0 (k) W The owner of an existing wa notarized letter to Anna that description of the pr legal descriptions II pr state that the o r and a the well is for irr n c Wpartm'M e, as shall be To th Fovisions of this water) use. No ng requirements: Ewell, or prop d water well, shall furnish a des their n e, address and legal h er shal Jude the names, addresses and Vfected ie o tie on to the well. The letter shall properties acknowledge and understand my and not domestic (potable water) use. Jed or wishing to tie on to an existing or proposed well City registered plumbing or irrigation contractor and ;r . Permits shall expire ninety (90) days after the ise where a permit is expired, a new permit shall be rk is resumed. no closer to property lines or significant structures as defined Front, Rear and Side yard setbacks as defined by the final plat or current zoning district for the subject property; ary Buildings: ten (10) feet; ► (3) Power lines: thirty (30) feet; (4) Septic tanks and drain fields: one hundred fifty (150) feet; (5) Septic tanks and drain fields: fifty (50) feet; if well is cement encased. (6) Septic spray heads/soil absorption area: eighty (80) feet; CITY OF ANNA, TEXAS ORDINANCE NO. PAGE 8 OF 10 (7) Barns and animal pens: one hundred, fifty (150) feet; (8) Permanent derricks and towers: no closer than forty (40) feet to side property lines. (1) Sewer Charges The City is required to charge for water discharges into the public sewer c actual quantity of water discharged. The method of determining this quan the water meter readings; therefore the following shall apply: (1) Wells used only for yard or irrigation watering and of with the sanitary sewer: No change in sewer charge; (2) Wells used in such a manner that all or a portion of public sewer: A City approved meter must be ' I readers. Sewer charge shall be based on t (m) Cross Connections There shall be a complete physical separation of at le Approved Distribution System and any privatgggMiK (n) Debris, etc. on Public Right of Way There shall be no debris, dirty water, m onto public rights -of -way. The drilling of among other things, all drilling, disposal operation at the well Section 3. Pe A violation of ai as unlawful or violation Each o basis ot based on ► meter ctu re. hes between the se dumped and/or discharged shall control and dispose of, as not to create a mud pit or the terms o s ordinance, whether herein denominated in this ordinance shall be de ed a misdemeanor. Any person convicted of any such in an unt not to exceed $2,000 for each incidence of violation. ch violation is considered a separate offense and will be t. NoW anding the foregoing, the City reserves any and all rights to :equitable remedies in a court of competent jurisdiction to enforce the ce. avings, Severability and Repealing Clauses. -dinances of the City in conflict with the provisions of this ordinance are repealed to the it of that conflict. If any provision of this ordinance shall be held to be invalid or nstitutional, the remainder of such ordinance shall continue in full force and effect the as if such invalid or unconstitutional provision had never been a part hereof. The City ►res that it would have passed this ordinance, and each section, subsection, sentence, CITY OF ANNA, TEXAS ORDINANCE NO. PAGE 9 OF 10 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. Publication of the Caption Hereof and Effective Date. This ordinance shall be in full force and effective upon the posting and/or required by law, of its caption and the City Secretary is hereby directed too posting and/or publication. A� by the City Council of the City of Anna, , 2016. ATTESTED: uty Secretary uarne L. 5mitn plicatioi lement s day of CITY OF ANNA, TEXAS ORDINANCE NO. PAGE 10 OF 10 CITY OF ANNA, TEXAS Item No. 9 City Secretary's use only City Council Agenda Staff Report Meeting Date: Staff Contact: Exhibits: February 23, 2016 Clayton Fulton Yes AGENDA SUBJECT: Consider/Discuss/Take Action regarding a Resolution authorizing approval of a contact with Texas Coalition for Affordable Power (TCAP) SUMMARY: The City of Anna currently purchases power not supplied by the Grayson Collin Co-op through a cooperative agreement with the Texas Coalition for Affordable Power (TCAP). TCAP is a non-profit, political subdivision corporation, owned and controlled by its 171 political subdivision members, the vast majority of whom are cities. TCAP is governed by a 15 member board of directors, all of whom must be city employees or elected city officials. As a political subdivision corporation, TCAP is able to bypass retail electric providers and purchase electricity on the wholesale market and directly negotiate rates. Our current TCAP electricity contract expires at the end of 2017. Beginning Feb. 25 TCAP will establish the size of the load and direct their supplier to look for a rate of 4.1 cents per kWh and lock in pricing for a five-year term. The suppliers and TCAP will monitor the energy market and have until June 30, 2016 to lock in the rate. Once the rate is locked in, the City has 24 hours to execute the contract. According to TCAP, the actual price is likely to be less than the benchmark price. The prices will become effective January 1, 2018. Given that these prices are to be locked in 2016 and will not expire until December 31, 2022, they are reflective of the lowest prices for electricity experienced since the retail market was deregulated January 1, 2002. Generally speaking, there ought to be an expectation that the price of energy will climb marginally for each year of the contract term beyond two years. The possibility of locking -in energy prices at or below 4 cents per kWh for a period that terminates in seven years is truly remarkable based upon the history of deregulation. City Secretary-1 - TCAP Contract - Staff Report The City has three contract options with TCAP. Option 1: This option results in fixed price for all usage regardless of the time of day. This option presents the greatest amount of predictability for electric rates and uses the fixed price as outlined above. Option 2: This option will provide the same fixed price as option 1 but limit that pricing for all on -peak usage with spot market pricing for off-peak usage. Spot pricing is variable and can change every 15 minutes. Therefore it is impossible to establish a specific price for spot pricing and savings cannot be guaranteed. This option subjects the city to the risk of increasing rates for off-peak usage, with market prices at historic recent term lows, both spot prices and fixed prices have fallen and their price differential has shrunk to the point that future savings from the spot market may not be as great as the risk of future price increases. Option 3: This option provides for the purchase of block power to cover the base use of all members selecting option three. Block power represents a firm commitment 24 hours a day and results in the cheapest form of energy on the wholesale market. Daytime peak consumption will be partly covered by a fixed price for solar with all other consumption supplied by the spot market. TCAP has indicated that with current prices about a half cent less than the price that existed when Option 2 was conceptualized last spring, it will be difficult for Option 2 to generate savings sufficient to justify its selection. Option 3 with its majority reliance on the cheapest form of energy has a greater probability than Option 2 of producing savings over Option 1. But again, with such low Option 1 fixed priced products now available to TCAP members and since there are no guarantees that Options 2 or 3 will produce significant savings, staff believes Option 1 provides the best choice. STAFF RECOMMENDATION: The attached Resolution authorizes the execution of a contract to purchase electricity through TCAP under Option 1. With the historic low rates and opportunity lock in the rate for 5 years this represents the safest commitment and insulates all usage from the risk of increased rates. In addition, the resolution would name the City Manager, Deputy City Manager, Finance Director, Mayor, Mayor Pro-Tem, and Deputy Mayor Pro-Tem as potential signers as the contract must be execute within 24 hours of the locking in the rate. City Secretary-1 - TCAP Contract - Staff Report RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, AUTHORIZING THE TEXAS 4. WHEREAS, TCAP and its predecessor organizations, Cities Aggregation Power Project, Inc. (CAPP) and South Texas Aggregation Project, Inc. (STAP), negotiated favorable contract terms that resulted in rebates from the wholesale and reasonable commodity prices for delivered electricity since 2002 result in stable budgets for electricity for members; and 5. WHEREAS, commodity prices for electricity volatility between 2002 and 2009, with prices ranging from kWh, causing CAPP and STAP members to 1 commitment that came close to cutting the 2008 pri extended until December 31, 2017, with a is WHEREAS, TCAP and market reform to b subdivisions; and other resources cents pere as :eyVntractual with t contract being of about 1 cent per ce for consumer protections well as cities and other political by its members and distributes monetary and load size of members and is controlled by a 15 of whom must be city employees of members who size and geography; and WHEREAS, wholesale power prices within the deregulated Texas market 01rgelylvrmined by the NYMEX gas futures prices for natural gas which are rrently low and relatively stable, but which change daily; and 9. WHEREAS, daily price changes require retail customers to execute a contract immediately upon receipt of a favorable offer; and 2 10. WHEREAS, pursuant to Texas Local Government Code Section 252.022(a)(15) expenditures for electricity are exempt from competitive bidding requirements; and 11. WHEREAS, on any given day, TCAP is able to capture favorable wholesale price for any period of time, comparable to or better than give P or broker; and I 12. WHEREAS, TCAP intends to continue to contrNs!s*#*N its ent wholesale supplier, NextEra, because the relationship NextE>': extEra is willing, after it knows the size of a given load, to ract at or below prescribed price and terms; and 13. WHEREAS, the City desir to execute ontract for electricity for the period beyond the expiration of i t act on ember 31, 2017, that locks -in favorable wholesale prices r one o ree different supply options: Option 1 - fixed- rice, uirements at a price not to exceed 4.1 cents per kWh for the Nort d Wes es .25 cents per kWh for the South and Houston zones; - ri on -peak hours and variable spot market prices for off- )3 - block energy at a fixed price to cover the base load hours, a fixed pri for so nergy to cover mid -day peak hours (approximately 10% of total load) d variable spot market prices for all remaining consumption; and �* 14. WHEREAS, TCAP will allow members six weeks from receipt of this resolution to consider whether to participate in this second opportunity to contract for K post-2017 electrical supply, and thereafter allow NextEra until June 30, 2016 to contact for power for five years at a price not to exceed 4.1 cents per kWh in the North and West zones and a price not to exceed 4.25 cents per kWh in the South and zones for Option 1 , so long as the aggregated load for any of the three s4dffy optic reaches at least 50 megawatts; and WHEREAS, wholesale suppliers demand assura for all contracted load; and WHEREAS, the City needs to assure T Electric Supply Agreement (CESA) reflecting the energy purchases for the post-2017 pe power for its electrical needs for 2018 th THEREFORE, BE IT RE ANNA, TEXAS: mercial and budget for ent to purchase NCIL OF THE CITY OF tors and its consultants and advisors are agents i0411 Y's electricity needs as a member of TCAP for '2 a a price not to exceed 4.1 cents per kWh for the a price not to exceed 4.25 cents per kWh in the r supply Option 1; 12 Section 2: The City prefers to participate in supply Option 1 with the following understanding: a) while supply Option 1 is a full -requirements, fixed -price option, Options 2 (fixed price on -peak, variable spot prices for off-peak usage) and 3 (fixed price for base load, fixed price for a portion of peak load, and vari market for remainder) have variable price components and savings ov ption cannot be guaranteed, and b) if there is insufficient desire among mbers to achieve a 50 MW threshold for either Option 2 or 3, the memb r s ing the inadequately subscribed option will be placed in the Option atego f no option is selected, TCAP will assume that a passed Re ion appro of Option 1. Section 3: Assuming this resolution is passed before Feb load of TCAP members passing this resolutio preferred Option and NextEra is able to provi June 30, 2016 to contract for power to be deliv exceed 4.1 cents per kWh for the N�orth cents per kWh in the Houston and January 1, 2018 through Decembe 2022, a is hereby authorized to sign an el ric supply hours of receipt of a contract that been ap TCAP Board of Directors: n Depui Mayor, Mayor Pro-TemAVDejW Section 4: That the City will com rchase power to meet all of its electricity needs eligible for c pu nt to the TCAP approved supply agreement and approve fu neces to electricity costs proportionate to the City's load under the ply agree t (w her wholesale or retail) arranged by TCAP and signed b TCAP's E cutive Director or President or other TCAP representa s authoriz y the TCAP Board. p py ofthis resolution shall be sent to Jay Doegey, Executive Director, las Parkway, Suite 600, Addison, Texas 75001 and Geoffrey ega ounsel to TCAP at 816 Congress Avenue, Suite 1900, Austin, IIIIIIIIW20161%Lthe,bined seeds 50 maMMAK for the SPemb porifiity prior to at a price not to )net to exceed 4.25 1 for the period iewina individuals ement for the City within 24 �d and recommended by the r Manager, Finance Director, 0 PRESENTED AND PASSED on this the 23rd day of February, 2016, by a vote of ayes and nays at a regular meeting of the City Council of Anna, Texas. Mayor ATTEST: COMMERCIAL ELECTRICITY SERVICE AGREEMENT (Fixed Price Around the Clock) This Commercial Electricity Service Agreement, including all of the Attachments, Schedules, and are attached and incorporated (collectively, the "Agreement"), is entered into between Gexa Ener Texas limited partnership, and City of Anna, Texas ("Customer"). Gexa and Customer may be re as a "Party" or collectively as the "Parties". SECTION 1: RETAIL ELECTRIC SALES AND SERVICES 1.1 Appointment and Scope. Customer appoints Gexa as its Retail Electric served under this Agreement. Customer authorizes Gexa to: (i) act as Custom provide the services required of a REP including, without limitation, the procu electricity throughout the Term to each of the ESI ID(s). Customer's appointmA other than those specified in this Agreement and the REP Services Agreement. 1.2 Agreement to Purchase. Customer shall purchase its electrici uir Term for each of the ESI ID(s) except as otherwise provided. The el c Gexa is for Customer's exclusive proprietary use. Customer alone s ay for eI for electricity and services Customer fails to take pursuant to its ntractu sufficient quantities of electricity to the TDSP for delivery to Custo 0 quantities of electricity (collectively, a "Scheduling Failure") the TDS igate sufficient electricity to satisfy Customer's needs. If a Sc ilure occurs, additional cost or expense to Customer, with its Qualifie edulin ty (a electricity necessary to cover the Scheduling Failure. 1.3 Term. ibits, which a"), a in ally 31 ) (ii) ry of n Gexa rom GeYAWroughout the Cus r receives from 1qWices provided and ns. exa fails to deliver ale the delivery of sufficient w and by its tariff to deliver ;hall financially settle, at no ERCOT) for the purchase of (a) Effective Date. Gexa shall provide retail ele service under s Agreement to each ESI ID beginning on the Effective Date, which will occur either on fter Expected S Date stated in Attachment B for any new customer or if Customer is an existing cu t ected Date is the meter read date following the expiration of the Customer's prior Agree ith , un 31, 2022 (that period, the "Term"). The end of the Term for each respective ESI ID i meter r date occurring in December 2022. As a result of variations in the timing of the Effective Date describ this n 1.3 the Term may include a partial calendar month in addition to the number of months set forth in Attac any. (b) Delayed Effective Da sha commercially reasonable efforts to cause the Effective Date for each ESI ID to occur on the Ex p te. Effective Date for an ESI ID occurs more than 20 days after the Expected Start Date, Cus er may pr Ge h evidence of the amount of electricity purchased by Customer from its current REP in c ection with th I ID ring the period on and after the 21st day after the Expected Start Date until the Effective a (the "Delaye ffective Date Period"), and the total amount paid by Customer to its current REP for the elec it purchase uring the Delayed Effective Date Period (the "Delayed Effective Date Electricity Am UPC ipt of e nce from Customer Gexa shall calculate and provide Customer a credit against futur c un A ent equal to the positive amount resulting from the following calculation: (a) the Delay fective to Electra mount minus (b) the amount that Customer would have paid to Gexa pursuant to this ement d e Delayed Effective Date Period for the same amount of electricity purchased by Customer from its t R riod in connection with the affected ESI ID(s); provided, that any credit is subject to the reg or all TCA customers stated in Exhibit A to the First Amendment of the REP Services Agreement ex TCAP, and that Gexa shall not be required to provide a credit with respect to any period during a elaye fectiv e Period where the delay was caused by an event outside of Gexa's control. (c) rvice A Term. If service continues beyond the Term, it will be on a month -to -month basis, and the Agre t will contin e in effect for the ESI ID(s) except that the Energy Price will be the greater of: (i) the Energy i set forth in Section 2.1 below, or (ii) the aggregate weighted average of the Market Rate (as defined herein) termined for all of the ESI ID(s), for as long as service continues. If Customer has not switched from Gexa to an supplier at the expiration of the Term, Gexa shall serve Customer at the rate set forth in this Section for a mini of 60 days. After those 60 days, Gexa may continue to serve Customer or terminate the Agreement and disconn ct Customer. 1.4 Modifications to ESI IDs. Gexa shall work with Customer in good faith during the Term to reasonably accommodate and assist Customer with the management of its electricity needs. If at any time during the Term, Customer wants to i) add or delete one or more ESI IDs , ii) otherwise modify the ESI ID information as a result of a decision by Customer to open, close or sell a facility owned or leased by Customer, iii) expand an existing facility, or iv) increase an existing facility's metered load, then Customer shall provide written notice to Gexa of such change. If, in Gexa's reasonable judgment, i) the addition is a separately metered load having (a) a peak demand expected to be less than 0.25 MW at all times during the first twelve months following commercial operation or (b) an annual average expected to be less than 0.125 MW during the first twelve months following commercial operation; or ii) does not result in a net increase of (a) 0.25 MW in peak demand or (b) 0.125 MW in average usage for an existing facility, Gexa shall use commercially reasonable efforts to promptly implement such changes, including providing required notices to ERCOT. If the addition is a separately metered load having (a) a peak demand expected to be in excess of 0.25 MW at any time during the first twelve months following commercial operation, (b) an annual average expected to be in excess of 0.125 MW during the first twelve months following commercial operation, or (c) results in a net increase of 0.25 MW in peak usage or 0.125 MW of average annual usage after consideration of any contemporaneous offsetting load decreases, as per the Letter Agreement (defined below), Gexa shall provide service to that accou ordance with the terms and conditions for Special Loads as stated in the April 27, 2011 Letter Agree ded 2016 (and via a Special Load Addendum thereto), among NEPM II, LLC, as gnee of ra Energy Power Marketing, LLC, ("PMI"), and Texas Coalition for Affordable Power ("TCAP") Gexa (the "L r Agreement"), and the April 27, 2011 Master Power Purchase and Sale Agreement Confirma etween PMI Gexa, as amended _, 2016 (the "Confirmation"). Gexa shall make perio ports rding cha to the billing status of any ESI ID(s) available to Customer and TCAP. Amendments t d or remo I ID( a result of changes made pursuant to this section are incorporated into this Agreemen are eff tive o tive Date for each ESI ID(s) added to this Agreement or the date that retail electri vice for remove I ID(s) ceases or is transferred to another REP. _ SECTION 2: RETAIL ELECTRIC ENERGY SERVICE CHARGES 2.1 Energy Price. (a) The Energy Price for the period commencing January 1, II $ /MWh. For the purposes of Section 3 the Energy Price shall be 1 (b) The Energy Price shall include a charge intended to reflect (i) t�ted An ry Services charges and (ii) the anticipated difference between the Load Zone price for th cable oad zone(s) hich the load is located and the appropriate trading hub price for those zone(s) (th ZI LAncilI S es and Nodal Basis Rate"). Gexa shall charge or credit Customer, as appropriate, e differe et Ancillary and Nodal Basis Rate and the actual costs for each item incurred to serve P customers t charge or credit the "Ancillary Services and Nodal Basis Adjustment"). Ancillary Services Nodal Basis justments are calculated and charged or credited on a quarterly basis. Gexa shall collect or cred em in the man specified in the Letter Agreement. (c) If, during the Term, the aggregate T d an ERCO fined load zone is greater than the Excess Load Amount under Schedule I of the Lett ee t or hortfall Load Amount under Schedule I of the Letter Agreement, the Customer may subject its pr are of the TCAP Aggregate Load Threshold Adjustment. Load Threshold Adjustm are calc ed on a monthly basis and charged or credited on a quarterly basis and Gexa shall collect or credit th the ner specified in the Letter Agreement. (d) If, during the Term, the Loss Fa rovided in the Letter Agreement, which represents the multiplier required to account for the di ee tomers load at its meter and the load required at the wholesale level to serve Customer (prima r ansmis nd ution line losses), differs from the actual loss factor, then Gexa shall charge or credit Cu er, as appr te, f e difference between the Loss Factor and the actual loss factor (that charge or credit t "Loss Factor ustment"). Loss Factor Adjustments are calculated and charged or credited on an annual b Gexa shall pute and collect or credit them in the manner specified in the Letter Agreement. 2.2 Addit-ftivery -T h Ch Gexa shall pass through and identify separately on Customer's bill with no mark-u arges, rring Charges, or Taxes that are not included in the Energy Price(s). All ustomer shall provide Gexa with all required exemption certificates if Customer is ny exa shall not recognize an exemption without the exemption certificates and shall refund or credit previously paid Taxes unless the taxing entity sends the refund to Gexa. Gexa gn to Customer any applicable claims for refund. SECTI : BILLIIWAND PAYMENT filling and Payment. Gexa shall invoice Customer's accounts on a monthly basis and shall bill Customer on olidated basis for all ESI IDs upon Customer's request. Gexa shall provide a summary bill for all accounts and d information for each account. Customer shall remit payment within 30 days of receiving the invoice. Gexa sha a the invoice amount on actual data provided by ERCOT and the TDSP. If ERCOT or the TDSP does not provi tual data in a timely manner, Gexa shall use estimated data to calculate the invoice and, upon receipt of actual data, reconcile the charges and adjust them as needed in subsequent invoices. 3.2 Late Penalties, Interest on Overdue Payments, Invoice Disputes. If Customer fails to remit all undisputed amounts on or before the due date, interest will accrue on any due and unpaid amounts from the due date at a rate of one percent per month, or the highest rate permitted by law, whichever is less. If Customer disputes a portion of an invoice it shall provide Gexa a written explanation specifying the amount in dispute and the reason for the dispute within 20 days of the invoice date. If Customer does not provide timely notice, Customer shall owe all amounts by the due date. Notwithstanding the above, if Customer notifies Gexa of a disputed invoice, regardless of whether Customer has already paid the invoice, Gexa shall make records in its possession that are reasonably necessary for Customer to determine the accuracy of the invoice available to Customer during normal business hours; provided, however that neither party may request an adjustment or correction of an invoice unless written notice of such dispute is given within twelve months after the due date of such invoice; provided further, that such twelve month limit does not apply in the case of TDSP meter tampering charges first billed to Gexa that prevent Gexa from reasonably adjusting invoices prior to the twelve month period. In all cases, Gexa and Customer shall use good faith efforts to resolve disputes. In the event the Parties are unable to resolve a dispute within ten days of the notice date, either Party may begin legal proceedings to seek resolution. Any amounts determined owed shall be paid within three days after a 3.3 Aggregator Fees. Pursuant to the REP Services Agreement between Gexa and TCAP, d to pay TCAP an amount determined by multiplying a TCAP Aggregation Fee by the volume consum associat ith the ESI IDs (the "Aggregator Fee"). Customer shall pay the Aggregator Fee. The initial Aggre r Fee is $ per kWh, however, it may be changed by the TCAP Board of Directors at any time. Gexa sha e the Aggreg r Fee as a separate line item on the Customer's bill. 3.4 Billing Guarantee. Gexa shall issue an invoice based on actual or estimat age to C er for ry ESI ID at least one time per month. If, for reasons other than Force Majeure, Ge s to in ice a ithin 120 days of any scheduled meter read, Gexa irrevocably waives its right t oice C er for energy consumed at that ESI ID for the meter read cycle that should have been invoiced, s n s than 1 days prior to the expiration of such 120 day period, Gexa provides Customer with a written exp f the cir tances that prevent Gexa from issuing that invoice and the expected time by whi oice a iss n such event, Customer and Gexa shall determine a reasonable extension period, no xce d 30 day i ch an invoice will be issued. Gexa shall adjust or true -up each invoice no more than tw' and Gex iss adjustments within 210 days of the initial issue date. Notwithstanding the foregoing, Ge may ' ice partial invoice arising from meter tampering charges without limitation and within a reasonab er first d to Gexa by the TDSP. SECTION 4: CUSTOMER INFORMATION, CREDIT) 4.1 Customer Information. By entering into th electricity service, Customer authorizes Gexa to c Customer's electric service, including Customer's ad information, and historical payment informati C release that information to Gexa. Jointing Gexa as Customer's agent for tion that Gexa may need to provide ber, account numbers, historical usage Customer further authorizes its TDSP to 4.2 Deposits and Other Security. rty (the equesZl My") may require the other Party (the "Providing Party") to provide a deposit (or additi eposit if nitial deposit was also required), letter of credit, or other form of credit assurance reasonably acceptable a esting Party (collectively, "Performance Assurance") during the Term of this Agreement if: (i) the Reque rty determines in its reasonable discretion that there has been a material adverse change in P or its guarantor's (if applicable) credit status or financial condition (which, if applicable, will m at its or rating has dropped lower than BBB- by Standard & Poor's Rating Group or Baa3 by Moody nvestor Ser or c s to be rated by either of these agencies); or (ii) Customer has been delinquent in payi the electric b ore than twice during the past twelve months. Any Performance Assurance, less any out ding balance d by Providing Party to the Requesting Party, will be returned to the Providing Party e the viding Part or its guarantor's (if applicable) credit or financial condition becomes satisfactory or ble, credit and rating of BBB- or Baa3 or higher, whichever occurs earlier; or, if the Performan sura relate ent payments, the Providing Party has paid all outstanding balances and has made all ents w' the dates set forth in this Agreement for a period of six consecutive months. SECTIO ON; DAMAGES an on by Customer for Insufficient Appropriations. If, during Customer's annual appropriations er ion, plicable governmental authorities do not allocate sufficient funds to allow Customer to continue to erform obliga under this Agreement (an "Appropriations Failure"), then Customer or Gexa shall have the right to inate thi greement in full or as to any affected ESI ID upon 30 days advance written notice effective at e f the period for which appropriations are made; provided, that if appropriations are subsequently allocated for ity for the ESI IDs covered by this Agreement, then the termination may be revoked at Gexa's option and those riations shall continue to apply to this Agreement and shall not be used for an electricity supply agreement with ano EP. Upon a termination of this Agreement for Appropriations Failure, in full or as to any ESI ID(s), Customer shall II amounts due Gexa under this Agreement, including the Customer Early Termination Damages. 5.2 Customer Early Termination Damages. Except in connection with the closure of a facility associated with an ESI ID pursuant to Section 1.4, in connection with a Force Majeure Event, or as otherwise provided or excused in this Agreement if Customer cancels this Agreement before the end of the Term and refuses to accept electric supply delivery from Gexa for any ESI ID(s), Gexa may charge Customer early termination damages equal to the amount determined as follows: the result of (a) the Expected Usage for each ESI ID subject to Customer's cancelation or refusal of electric supply delivery ("Customer Terminated Usage") times the REP Services Fee specified in the REP Services Agreement; plus (or minus, as applicable) (b) the Wholesale Transaction Termination Payment, as defined below (the result of the entire preceding calculation the "Customer Early Termination Damages"). If the Customer Early Termination Damages are charged due to an Event of Default by Customer, then the Customer Early Termination Damages will also include Gexa's reasonable costs relating to the determination and collection of Customer Early Termination Damages, including attorney and consultant fees incurred. The provisions in Section 3 related to Billing and Payment apply to the billing, due date, and collection of Customer Early Termination Damages. Customer agrees that Customer Early Termination Damages are a reasonable estimate of the damages due Gexa for failure to accept electric supply, and are not punitive in nature. 5.3 Termination for Wholesale Supply Failure. If, during the Term, the Wholesale Transaction ' ated as a result of a default by PMI ("Wholesale Supply Failure"), then this Agreement will also termin the date the Wholesale Agreement terminates. In the event of a termination for Wholesale Supply F Gexa s ay Customer a Wholesale Transaction Termination Payment if required by Section 5.5. 5.4 Gexa Early Termination Damages. Except for a Wholesale Supply Failure, a Force ure Event, o otherwise provided or excused in this Agreement if Gexa cancels this Agreement and ref to pr electric su delivery to Customer for any or all ESI ID(s), Customer shall have the right to charge G n early to tion p ty equal to the amount determined as follows: the result of the Expected Usage f ch ESAD sub xa's cancellation or refusal of electric supply delivery ("Gexa Terminated Usage") tim e REP ces Fee ified in the REP Services Agreement (that result the "Gexa Early Termination Dama If t exa Earl Termination Damages are charged due to an Event of Default by Gexa, then the Gexa Early Ter amage also include Customer's reasonable costs relating to the determination and colle Gexa Ter ion Damages, including attorney and consultant fees incurred. Gexa agrees the Gex rly rminatio are a reasonable estimate of the damages due Customer for failure to deliver electric s y, and ar unit ature. 5.5 Wholesale Transaction Termination Payment. If the Who le T ter hated then Gexa shall calculate the portion of the Termination Payment (as defined in the E greem t) paid under the Wholesale Transaction attributable to Customer's load (the "Wholesa nsaction Termina Payment"). Customer or Gexa shall pay the Wholesale Transaction Termination P other, s a iate, in the manner described below and without regard to who is a defaulting party. I xa owes n Payment under the Wholesale Transaction, Customer shall pay Gexa the portion of t ermination ent attributable to Customer's load. If PMI owes Gexa a Termination Payment under the Whole Transaction, a shall pay Customer the portion of such Termination Payment attributable to Customer's load. he extent a T ination Payment due from Gexa to PMI is adjusted in Gexa's account to reflect the full of P transactwith a replacement REP, Gexa shall make corresponding adjustments to the Wholes an n ment on a pro-rata basis. Gexa shall remit a Wholesale Transaction Termination Pa t due C mer, days of Gexa receiving the payment from PMI. Customer shall remit a Wholesale Tra tion Ter tion Payment due Gexa within 30 days of Gexa's invoice. Gexa shall use commercially reasonable e to ct Termination Payments from PMI that include amounts due Customer. SECTION 6: NOTICES 6.1 General Notice. hand delivered or sent b facsimile or hand deliver effective on then busin The Parties si t e re7Wd by Applicable Law, all notices are deemed duly delivered if id first class mail, facsimile, or by overnight delivery service. Notice by y actually received, notice by overnight United States mail or courier is nt, and notice by U.S. Mail is effective on the second day after it is sent. es below or any other address one Party provides to the other in writing: If to Gexa: Gexa Energy, LP 20455 State Highway 249, Suite 200 Houston, Texas 77070 6.2 Payments. The Parties shall send payments to the addresses below or any other address one Party provides to the other in writing: a. If to Customer: City of Anna Attn: City Manager 111 N. Powell Parkway City of Anna, Texas 75409 b. If to Gexa: Gexa Energy, LP 20455 State Highway 249, Suite 200 Houston, Texas 77070 SECTION 7: DEFINITIONS 7.1 Definitions. In addition to terms defined elsewhere in this Agreement, when used whether singular or plural, capitalized terms have the meanings set forth in this Section 7. terms not otherwise defined shall have the meanings given them in the following docume definitions contained in those documents applied in the following order: PURA, the PU ERCOT Protocols. 1. "Actual Usage" means the actual amount of electric energy (in kWh) the TDSP. 2. "Delivery Charges" means those charges or credits from the TDS limited to: Transmission and Distribution Charges, System Benefit Fund Competitive Transition Charge, Standard Customer Metering Charge, Reduction Credit, Excess Mitigation Credit and Utility Imposed React, c 3. "Effective Date" means the date of the first meter reading of the TDSP and ERCOT shall have timely performed any re qui c switch Customer's REP to such ESI ID to Gexa. 4. "Electricity Related Charges" means, unless ERCOT Administrative Fee, Delivery Loss Charge, Tr< Residential Energy Credit Charge, Unaccounted For E Settlement Charge. 5. "Energy Price(s)" means the Related Charges. 7. "ERCOT Protocols" and initially approved by the exhibits referenced in the CA policies, rules, guidelinesjff 8. "ESI ID(s)" meanl to this Agreement or if Cu Gexa, as suchydlMhLbe Gexa by the TDSP after n procedures necessary to r rvices Charge, Congestion, Renewable Energy Credit Charge, Scheduling Entity Charge, Imbalance adopted, published, and amended from time to time by ERCOT, ric transactions in the ERCOT Region, including any attachments or scheduling, operating, planning, reliability, and settlement criteria of ERCOT, or any successor document thereto. IIdentifiers for the property service addresses identified on Attachment B Gexa customer then the list of service addresses currently served by to time as provided in Section 1.4. 01��he amount stated in Attachment B calculated for the remaining Term, or if no er is an existing Gexa customer then the average actual monthly Customer energy from the previous year (or if an average cannot be computed due to limited service n average monthly usage as is reasonably determined by Gexa) times the number ional Marginal Price" means the price calculated for the applicable trading hub pursuant to "Market Rate" means 140% of the load -weighted average of the hourly LMPs at the corresponding trading determined for any delivery period. ROodal Market" means the implementation of wholesale market design by ERCOT with locational marginal pricing for resources. 14. "Nodal Congestion" means the positive difference in price between the real-time settlement point price as determined by ERCOT for the trading hub and the real-time settlement point price as determined by ERCOT for the load zone associated with the customer Facilities. 15. "Non -Recurring Charges" means any charges imposed by the TDSP or other third parties on a non -recurring basis for services, repairs or additional equipment needed for Customer's electric service. 16. "PUCT" means Public Utility Commission of Texas. 17. "Special Loads" has the meaning given it in the Letter Agreement. 18. "Taxes" means all taxes, assessments, levies, duties, charges, fees and withholdings of any kind levied by a duly -constituted taxing authority and all penalties, fines, and additions to tax, and interest thereon that are directly related to the services provided under this Agreement, but does not include the System Benefit Fund fee and fees and charges imposed by ERCOT. By way of example only, Taxes includes: Sales Tax, Miscellaneous Gross Tax, PUCT Assessment Fees and Franchise Fees. 19. `TCAP" means Texas Coalition for Affordable Power, an aggregation pool of govern d other organized and administered by TCAP of which Customer is a member for the ESI IDs. 20. "TDSP" or "Transmission and Distribution Service Provider" means an e Texas, which transmits or distributes electric energy. 21. "Wholesale Transaction" means the transaction evidenced by the Confi and PMI will provide full requirements energy and related services necessary to s` TCAP members as served by retail provider Gexa. Attachments: Attachment A Attachment B (for new TCAP Customers only) the State CUSTOMER: City of Anna, Texas GEXA: Gexa E gy, LP, By its General Partner Gexa Ener , LLC B: B: Printed: Philip Sanders < Printed: Title: City Manager Title: Date: Date: Ll% Terms and Conditions of Service Attachment A These Terms and Conditions of Service form an integral part of the Commercial Electricity Service Agreement between Customer and Gexa. In addition to the terms defined elsewhere in this Agreement, when used with initial capitalization, whether singular or plural, capitalized terms have the meanings set forth in Section 7.1 of this Agreement. Customer should thoroughly a entire Agreement, including these Terms and Conditions of Service, before executing this Agreement. A. REPRESENTATIONS AND WARRANTIES A.1 Customer's Representations and Warranties. As a material inducement to entering into th eement, Cust r represents and warrants to Gexa as follows: (a) it is a duly organized entity and is in good standing r the of Texas; (b execution and delivery of the Agreement are within its powers, have been duly authorized by all ne ry action, do not e the terms or conditions of contracts it is party to or laws applicable to it; (c) performance of this Ag ent will be dull on all necessary action and will not violate the terms or conditions of contracts it is party to; (d) as of ate sale electri exa to Customer under the Agreement start, Customer will have all regulatory authorizations neces or it to I perform it erations and such performance will not violate the terms or conditions of contracts it is party to or laws ab it; (e) thislllgreement is a legal, valid, and binding obligation of Customer enforceable against it in accordance with its ter ct to ban y, insolvency, reorganization, and other laws affecting creditor's rights generally, and with regard to reme ubject t discretion of the court before which proceedings to obtain the same may be pending; (f) th re n bankrup s cy, reorganization, receivership, or other similar proceedings pending or being contemplated by it, its knowl hrea ainst it; (g) there are no suits, proceedings, judgments, rulings, or orders by or before any court or an overn tha uld materially adversely affect its ability to perform the Agreement; and (h) as of the Effective Date and t Ter ere is no other contract for the purchase of electricity by Customer for the ESI ID(s), or, if such a contract presen s, that it w' rminate prior to delivery under this Agreement. Customer further represents and warrants that i lied with the re ents of Section 2162, Texas Government Code and all applicable contracts (including, but no act -EM) awarded by the Council on Competitive Government regarding the bidding or awarding of thi reement. A.2 Gexa's Representations and Warranties. As a mate inducement to ring into this Agreement, Gexa represents and warrants to Customer as follows: (a) it is duly organized, valid) isting, and in go tanding under the laws of the jurisdiction of its formation and is qualified to conduct its business in those juri ions necessary perform the Agreement; (b) the execution and delivery of the Agreement are within its powers, hav dul orized by al cessary action, and do not violate the terms or conditions of its governing documents or contracts ' or s a le to it; (c) performance of the Agreement will be duly authorized by all necessary action and will late th ms o of its governing documents or contracts it is party to; (d) as of the date sales of electricity by Gex ustomer er the Agreement start, Gexa will have all regulatory authorizations necessary for it to legally perform its opera and s erformance will not violate the terms or conditions of its governing documents, contracts it is party to, or laws apple t nd (e) the Agreement constitutes a legal, valid, and binding obligation of Gexa enforceable against it in accord;ith its subject to bankruptcy, insolvency, reorganization, and other laws affecting creditor's rights generally, and wit itab edies, subject to the discretion of the court before which proceedings to obtain the same may be pending. A.3 Forward Contract. (i is Agreemen stitut forward contract within the meaning of the United States Bankruptcy Code ("Code"); (ii) Gexa is a fo rd contract mer t; and iii) either Party is entitled to the rights under, and protections afforded by, the Code. B. DISCLAIM WA TIES; LIM ON OF LIABILITIES B.1 LIMITAT BI 1A NOT EXCUSED BY REASON OF FORCE MAJEURE OR AS OTHERWISE PROVIDED, A IMITE DIRE AL DAMAGES. GEXA IS NOT LIABLE TO CUSTOMER FOR CONSEQUENTIAL, INCIDENTA NITIVE, MPLARY OR INDIRECT DAMAGES OR LOSS OF REVENUES OR PROFIT. THESE LIMITATIONS APPLY WI T RE CAUSE OF ANY LIABILITY OR DAMAGE. EXCEPT FOR (a) THE GEXA EARLY TERMINATIO DEFAULTS, (b) THE CUSTOMER EARLY TERMINATION DAMAGES DUE IF CUSTOMER DEF AN E WHOLESALE TRANSACTION TERMINATION PAYMENT, THE LIABILITY OF EITHER PARTY TO THE O NY GATIONS UNDER THIS AGREEMENT SHALL BE LIMITED TO THE AGGREGATE AMOUNT OF ALL ARS BY TOMER TO GEXA (IF CUSTOMER) OR RECEIVED BY GEXA (IF GEXA) PURSUANT TO THIS RE THERE O THIRD PARTY BENEFICIARIES TO THIS AGREEMENT. B.2 to Mitigate. Each Party shall mitigate damages and use commercially reasonable efforts to minimize any damages it a result of the other Party's performance or non-performance. AIVER OF CUSTOMER PROTECTION RULES AND CONSUMER RIGHTS. THE PARTIES FURTHER ACKNOWLEDGE THA CUSTOMER PROTECTION RULES ADOPTED BY THE PUBLIC UTILITY COMMISSION (AS CONTAINED IN ITS SUBS E RULES 25.471 ET SEQ.) ("CUSTOMER PROTECTION RULES") DO NOT APPLY TO THIS AGREEMENT EXCEPT FOR TH LOWING RULES: 25.481, 25.485 (b),(d), AND (e), AND 25.495. EXCEPT AS SET FORTH IN THIS SECTION, CUSTOMER EXPRESSLY WAIVES THE CUSTOMER PROTECTION RULES TO THE FULLEST EXTENT ALLOWED BY APPLICABLE LAW. CUSTOMER FURTHER WAIVES ITS RIGHTS UNDER THE DECEPTIVE TRADE PRACTICES --CONSUMER PROTECTION ACT, SECTION 17.41, ET. SEQ., BUSINESS & COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL RIGHTS AND PROTECTIONS. CUSTOMER REPRESENTS AND WARRANTS TO GEXA THAT: (a) CUSTOMER IS NOT IN A SIGNIFICANTLY DISPARATE BARGAINING POSITION IN RELATION TO GEXA; (b) CUSTOMER IS REPRESENTED BY LEGAL COUNSEL THAT WAS NEITHER DIRECTLY NOR INDIRECTLY IDENTIFIED, SUGGESTED OR SELECTED BY GEXA; AND (c) CUSTOMER VOLUNTARILY CONSENTS TO THIS WAIVER AFTER CONSULTATION WITH ITS LEGAL COUNSEL. B.4 UCC/Disclaimer of Warranties. The electricity delivered is a "good" as that term is understood in the Texas B&CC (UCC §2.105). The Parties waive the UCC to the fullest extent allowed by law and the UCC requirements do not apply to this Agreement, unless otherwise provided. If there is a conflict between the UCC and this Agreement, this Agreement controls. Ne I ANIN&Lcontrols nor physically takes possession of the electric energy prior to delivery to Customer's ESI ID(s). Therefore, neithe sible to the other for any damages associated with failure to deliver the electric energy, nor for damages it may c prior to de to Customer's ESI ID(s). Once the electric energy is delivered to Customer's ESI ID(s) it is deemed in ssion and con f Customer. ELECTRICITY SOLD UNDER THIS AGREEMENT WILL MEET THE QUALITY STANDARD THE APPLICA LOCAL DISTRIBUTION UTILITY AND WILL BE SUPPLIED FROM A VARIETY OF SO ES. MAKES REPRESENTATIONS OR WARRANTIES OTHER THAN THOSE EXPRESSLY SET FORTH IN AGRE T, AND EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, UDING W TI OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. GEXA EX SLY TES HER REPRESENTATIONS OR WARRANTIES, WRITTEN OR ORAL, EXPRESS OR IMPLIED, I DING A PRESE ION OF WARRANTY WITH RESPECT TO CONFORMITY, TO MODELS OR SAMPLES, MERC AB OR FI ESS FOR A PARTICULAR PURPOSE. B.5 Force Majeure. Gexa shall make commercially reasonable efforts to pr ctric but d of guarantee a continuous supply of electricity. Gexa does not generate electricity nor does it tra or tribute el Y. es and events out of the control of Gexa and Customer ("Force Majeure Event(s)") may result in in ptions in s . e or to accept electricity. If either Party is unable to perform its obligations, in whole or in part, due to a F Majeu n th Iigations of the affected Party (other than the obligation to pay any amounts owed to Gexa that rela prior the Force Majeure Event) are suspended to the extent made necessary by such Force Majeure Event. Ther either Pa is liable to the other Party for damages caused by Force Majeure Events, including acts of God, act failure to act by, a overnmental authority (including the PUCT or ERCOT and specifically including failure by ERCO er ata available), accidents, strikes, labor troubles, required maintenance work, events of "force maj " or "uncon le a similar term as defined under the applicable transmission provider's tariff, inability to access the I I distribution uti ystem, non-performance by the supplier or the local distribution utility, changes in laws, rules, or regulations of governmental a rity (including the PUCT or ERCOT) that would prevent the physical delivery of energy to Customer's facilities, any cause bey such Party's control. The Parties agree that Appropriations Failures and Scheduling Failures are ngigkNI&L Ma Events. C. CONFIDENTIALITY AGREEMENT CA Confidentiality. Customer is a go Government Code. These laws may requi "Disclosing Party"), the other Party (that f Information which is disclosed to the Receivir by law. "Confidential Informatio " which is marked as "Confidentia' en it is information which (i) is availabl the public Party of its obligations hereund (iii) was kn known to the Receiving Party reafter of regardless of fault and survive t nation, c; years. Customer a Ge rovid 'Authorized Parti ose and of the Part' ffiliates at have Agreement. al bod bject to p_u_b7ic information laws, including Chapter 552 of the Texas ;ure formation, and upon the written request of a Party (that party, the ving Party") shall keep confidential and not disclose any Confidential Disclosing Party except for disclosures to Authorized Paties or as required his Agreement and any other information in written or other tangible form 1 Receiving Party, except that Confidential Information shall not include )me ilable to the public other than as a result of a breach by the Receiving e Receiving Party prior to its disclosure by the Disclosing Party, or (iv) becomes Iby disclosure by the Disclosing Party. The provisions of this Section apply i, suspension, completion or expiration of this Agreement for a period of two (2) vith all information requested by TCAP about Customer's account and billings. employees, agents, representatives and professional consultants of the Parties, v the Confidential Information for the purpose of evaluating and performing this nts ult. An event of default ("Event of Default") means: (a) the failure of Customer to make, when due, any pa ed uNPaves greement for any undisputed amount if that payment is not made within fifteen (15) business days after pt of w noile or electronic mail are valid forms of notice for this paragraph) from Gexa; or (b) any representation or rranty m by to be false or misleading in any material respect; (c) except as provided in clause (a) above or erwise is se,he failure of any Party to perform its obligations under this Agreement and that failure is not excused by re and remains uncured following 20 business days written notice of the failure; (d) the defaulting Party (i) makes an as t or any general arrangement for the benefit of creditors; or (ii) files a petition or otherwise commences, authorizes or acqu to a bankruptcy proceeding or similar proceeding for the protection of creditors, or has such a petition filed against it and that pe s not withdrawn or dismissed within 20 business days after filing; or (iii) otherwise becomes insolvent; or (iv) is unable to pay its de hen due; or (v) fails to establish, maintain or extend Credit in form and in an amount acceptable to Gexa when required; or (e) the Wholesale Transaction is terminated due to a default by Gexa under CESAs with other TCAP members or due to a default by PMI under the Wholesale Transaction. If an Event of Default listed in subsection (d) occurs, it is deemed to have automatically occurred prior to such event. D.2 Remedies upon an Event of Default. If an Event of Default occurs and is continuing, upon written notice to the defaulting Party, the non -defaulting Party may (a) commence an action to require the defaulting Party to remedy such default and specifically perform its duties and obligations in accordance with the Agreement; (b) exercise any other rights and remedies it has at equity or at law, subject to the Agreement's Limitations of Liabilities; and/or (c) suspend performance; provided, however, that suspension shall not continue for longer than ten (10) Business Days unless the non -defaulting Party has declared an early termination with proper notice. If Customer is responsible for an Event of Default and fails to cure within ten (10) days of written notice (such additional cure period does not apply to default for non-payment), in addition to its other remedies, Gexa may (i) terminate this AgreemeNif e Customer the Customer Early Termination Penalty pursuant to Section 5 of this Agreement. Notwithstanding thet disconnect or order disconnection of service to Customer unless the following events have all occurred: (1) C er h Default for nonpayment under Section D.1(a) above, (2) Gexa gives Customer a ten (10) day written dis ction n) Customer does not pay all undisputed outstanding payments owed by the end of the ten (10) day notice , ) . soci li to and are ition may ver of, or n part, or asonably :ive Date. financing condition all of the to of this condition I agree in ender this )wer than than the :)r Fee. thority of shall, to itent and ties, and t may be :tion, any ,isactions he TDSP ;putes, or n.. Gexa by Gexa a. is AgrlWt is governed by and construed and enforced in accordance with the laws of the State of Texas applicable contracts a and pMWed in the State of Texas, without regard to the State of Texas conflict of laws provisions. b II disputes b tween the Parties under this Agreement which are not otherwise settled will be decided by a court of N t risdiction in Harris County, Texas, and the Parties submit to the jurisdiction of the courts of the State of Texas and the strict Courts in Houston, Harris County, Texas. All disputes are governed under the laws of the State of Texas. Subject to the provisions of E.11.a. above, this Agreement is subject to, and in the performance of their respective obligati der this Agreement the Parties shall comply with, all applicable federal, state and local laws, regulations and requirements (including ules, regulations and requirements of quasigovern mental and regulatory authorities with jurisdiction over the Parties, including ER OT) (collectively, "Applicable Law"). E.12 No Presumption Against Drafting. Both Parties contributed to the drafting of this Agreement. The rule of construction that any ambiguity is construed against the party who drafted this Agreement does not apply to this Agreement. E.13 Counterparts; Facsimile Copies. This Agreement may be executed in counterparts, all of which constitute one and the same Agreement and each is deemed an original. A facsimile copy of either Party's signature is considered an original for all purposes, and each Party shall provide its original signature upon request. E.15 Offer for Electric Service; Refusal of Service. This Agreement, including these Terms and Conditions of Service, constitute an offer for electric service, and is expressly conditioned on acceptance of this Agreement by Gexa. Gexa may refuse to provide electric service to Customer subject to the requirements of Applicable Law. Model Staff Report to Support Resolution Authorizing TCAP to Procure Electricity for 2018-2022 This resolution is designed to support the second of several opportunities for P members to contract for electricity for the post-2017 time period. If interested in contr a five-year term (2018-2022) during 2016, the authorizing resolution must be p by the governing body of the interested TCAP member by February 25, 2016. The dead will allow definition of the load to be served under each of three different electric sup op which must be at least a minimum of 50 megawatts. Also, the deadline wil e the sale provider ample opportunity to lock a fixed -price, equal to or less than a cific be chm each ERCOT zone, before June 30, 2016. When that supply scenar' locke ch mem that passed the authorizing resolution must immediately sign a contra t ower. ease Note: The draft resolution is in Word and blanks must be fille to id the me , the preferred supply option and several individuals by name or ho w ontract when the appropriate price point is reached. '0�, Exulanation of Whereas Clauses: What is TCAP? As reflected in the fourth and sevent hereas Claus TCAP is anon -profit, political subdivision corporation, owned and controlle its 171 polit 1 subdivision members, the vast majority of whom are cities. TCAP 2011 fro e merger of Cities Aggregation Power Project ("CAPP") and So exa gr ct ("STAP"), both of which were created in 2001, shortly before dere on beca e effective on January 1, 2002. TCAP is governed by a 15 member boar direc , all of whom must be city employees or elected city officials. Typically, board memb been mayors, city managers, assistant city managers, finance directors or cityddillIhm. Market Benefits An individ city, citizenjr commercial customer can only purchase power directly from a RjJ111&ctri eider (" ") which under Texas law exists to give the impression of a Wt. t generate electricity, nor can they own wires. REPS are lemen between the wholesale and retail markets. As reflected in the second s, TCAP, as a political subdivision corporation, uniquely can go who lesa market. CAPP and STAP, prior to their merger into TCAP, separated een a wholesale supplier and an independent REP, providing TCAP consultants ght into the margins of various market participants than would be possible for A broker or a REP would hand a form contract to an individual consumer. In case of TCAP, no form contract is acceptable and, because of the size of TCAP's load, both holesale suppliers and REPS are willing to negotiate contract terms that are beneficial to TCAP mbers, enabling the refunds members have consistently received, special terms for adds and s, including an ability to add new loads at current market prices even if the market price is lower than the price of the master agreement. TCAP's benefits regarding pricing TCAP's membership consumes approximately 1.4 billion kWh annually which amounts to approximately $100 million in revenue for the wholesale provider at current contract prices. The value of the aggregated load is extremely appealing to wholesale market pa ' enabling TCAP to get the market competitive pricing at any particular moment. As cted i the third Whereas clause, in addition to the size of its load, TCAP derives efit from geographic diversity. TCAP members reside in all four ERCOT zones and ar sp between the entire length and breadth of Texas, from Wichita Falls to Harlingen a ort on to Palestine. Since consumption is influenced by weather and since weathe ditions are in the same across all of Texas, it is unlikely that all TCAP me s are hing consumption simultaneously. If the peaks of all TCAP members we tale e sum wou equal 313.1 MW. But a wholesale supplier looks at the peak consu of TC an aggregated load rather than the sum of the peaks of all memb P's p ema 246.9 MW. That reduction in peak is a specific and unique bene f aggre at*on. ike other aggregation groups that accept counties and school distric s me AP focused its membership on cities and other political subdivisions th relati hip with cities to maintain the very favorable load factor of cities h o peak co ption from street lights which provides favorable pricing terms. History of CAPP, STAP, TCAP pricing As reflected in the fifth and s clauses, gregated cities have historically been interested in flat, fixed -price, e m nd price stability. The resolution under consideration maintains goal fo five- riod at a price much lower than the current contract price. In 200 , PP an AP were able to obtain prices for energy at 4 cents per kWh. Very quickly after ret ation was implemented, natural gas prices started to rise, and they continu up trend until late 2008. In late 2008, CAPP cities were paying approximate .5 ce r k Fear that natural gas price volatility would continue to result in high el icity rates, P c were excited to lock -in long term rates beginning in 2009 that wer 'gnificantly to r than prices experienced in the 2007-2008 time frame. STAP cities experi d their high rate in 2006 at slightly more than 9 cents per kWh. STAP cities sa dro round 7 ents per kWh in 2008 and were happy to find a contract that woul ilize ces i cent range for an extended period. When CAPP and STAP me rs sign ew contacts in late 2008, no one could have predicted that the economy was ab en recession and that fracking would bring a glut of natural gas to a ggrkOlqWeduced deMand, putting natural gas and electricity prices into a downward trend. P%natZWas prices have continued to drop and now TCAP members have an opportunity to ago cap es in the range of, and hopefully below, 4 cents per kWh. Requirements As explained in the tenth Whereas clause, there is no legal requirement that a city engage ompetitive bidding process prior to contracting for electricity. The primary expectation of co tracting for wholesale energy in a deregulated energy market is that a purchaser sign a contract accepting a particular offered price within 24 hours of receipt of the offer. NYMEX gas futures prices change daily, and since gas prices drive electricity prices, it is unlikely that any 2 given price quote for wholesale electricity during a given period will remain open for more than a day. As explained in the ninth Whereas clause, TCAP members are expected to immediately execute a contract once TCAP's supplier is able to lock in a price at or below the benchmark prices specified in the resolutions for a five-year period commencing January 1, 2018. That is why Section 2 of the resolution requires the naming of specific individuals with who can correspond and provide a contract for signing when appropriate. Resolution's Objective As explained in the eleventh thru fourteenth Whereas clauses, a e size of ad for the 2015 contract opportunity is defined by February 25, 2016, TC supplie ill loo an opportunity to lock prices for the five-year term at or below speci i nch s (4.1 — 4. cents per kWh). That may happen by the second week of March, but if i that p ' are trending downward, TCAP will direct its designated suppli Era, ily or the market to hopefully capture a price under lower than be arked prices. ndow of opportunity for capturing a reasonable price at or below th ench ex y June 30, 2016. TCAP will develop another supply opportunity in t 016 any members not contracting in this offering. -.9111oft— TCAP benefits to the consuming public Whereas clause six references TCAP oming a force voice for consumer protections and market reform to benefit the publi el olitical su isions. When CAPP and STAP merged in 2011, one of the guidin es ed ' etings with members and through subsequent board priority-setti eetings s tha should advocate for reforms in the market that would enhance c tition enefit the general public. TCAP has become the closest thing to a consumer ad e exists in the deregulated marketplace on both the wholesale and retail s' the ess. TCAP membership not only provides political subdivisions with r ces nit aTkets, capture reasonable prices and best available terms, stabilize bu ts, address ble ith invoices and help with governmental reports, provide best of cl portals to u stand consumption patterns, membership also affords an opportunity to repr t to constitu s that they have an advocate on their behalf. J^ OICE OF SUPPLY OPTION Whe identifies three different supply options that TCAP has arranged as i ch member. Option 1 is a fixed price for all consumption regardless of time of day. ic not exceed 4.1 cents per kWh in the North and West ERCOT zones. It will not ex4.2 s per kWh in the Houston and South zones. The actual price is likely to be less te bench ark prices. The prices will become effective January 1, 2018. Given that these ces are to be locked in 2016 and will not expire until December 31, 2022, they are reflective of the lowest prices for electricity experienced since the retail market was deregulated January 1, 2. Generally speaking, there ought to be an expectation that the price of energy will climb finally for each year of the contract term beyond two years. The possibility of locking -in energy prices at or below 4 cents per kWh for a period that terminates in seven years is truly remarkable based upon the history of deregulation. 3 In the Spring of 2015, TCAP consultants received indicative fixed -prices around 4.5 cents per kWh. They then developed two supply options to the fixed price full requirements contract that offered attractive savings opportunities. Both Options 2 and 3 have variable components related to the energy spot market. While the average spot price in the past three years has been $32.14/Mwh (2013), $38.50/Mwh (2014), $25.53/Mwh (2015), respecti important to note that spot market prices can change every 15 minutes, therefore it i Zndthus to provide members a precise price for Options 2 and 3. While they provide an rt savings off of the benchmarked prices for Option 1, savings cannot be gua ante Option 2 and 3 involve risk to that does not exist with Option 1. A T mem completely risk adverse should select Option 1. Option 2 fixes a price for the peak usage period and then turn e s arket for aM off-peak usage. When TCAP was developing these products in 2014, th a large gh gap between fixed price options and spot prices that this op ' ed v ttract' Now, with market prices at historic recent term lows, both spot p ' and 1dr alien and their price differential has shrunk to the point that futures ngs f et may not be as great as the risk of future price increases. The followi low current spot market prices have gone. $100 Spot Na as vs. ERCOT No s $10.49 $90 $9.00 $80 $800 $70 $7.00 & $W $Gm \ S $s9 $s as 7 W $aoo $z9 $zoo $la $1.ao $aoo Q3 QI Q3 QI Q3 QI Q3 QI Q3 QI 43 QI 6 QI 6 720082 2010 2010201120112012 2012 2013 2013 2014 2014 2015 2015 AM North U Price —HSC Sput Price ped w' the anticipation that spot prices during the off peak period to $40/MWh ($0.01-$0.04/kWh) over time for spot lly fixed priced products (Option 1) includes off peak pricing These low Option 1 fixed prices for off peak usage may make it lot prices to create additional savings under Option 2 over time even incurring market price risk. ;h the purchase of a block of power to cover the base use of all option. Block power, since it is a firm commitment 24 hours a day, rgy available in the wholesale market. Daytime peak consumption fixed price for solar power with all other consumption supplied by the In considering Option 2, TCAP consultants would tell you that with current prices about a half cent less than the price that existed when Option 2 was conceptualized last Spring, it will be difficult for Option 2 to generate savings sufficient to justify its selection. Option 3 with its M majority reliance on the cheapest form of energy has a greater probability than Option 2 of producing savings over Option 1. But again, with such low Option 1 fixed priced products now available to TCAP members, and since there are no guarantees that Options 2 or 3, which utilize spot market pricing, will remain as attractive as they were even a few months ago. EXPLANATION OF "BE IT RESOLVED" SECTIONS Section 1. Authorizes TCAP to submit the members load, along with a to other authorizing members, to be aggregated into a pool by AP's sale supplier for a contract commencing January 1, and ermi December 31, 2022 with the understanding that th ed, ful uireme price under Option 1 must not exceed 4.1 cents per h ' e Nort and West zones and must not exceed 4.25 cents in t oust South s. Section 2. Sets conditions precedent that the aggre d load a ed , that the resolution be passed before February 25 016, ex t ra has until June 3, 2016 to lock in a fixed price for egated ad that does not exceed benchmark prices. It Tres the desi ion of a specific individual, by name or title, w re a 'ze contract within 24 hours of submittal, assuming condition ve be n met. Section 3. Consistent with the last t Whereas cl es, this section commits the member to budget f p e funds ssary to pay for the member's proportionate sh of t gg d that TCAP commits to with NextEra. TC ill con t with extEra based upon representations of authorizing me s, a of whom will be provided with a Commercial Electric Service nt ("CESA") with GEXA, the current REP, that exten tai vice terms with the lower wholesale price arranged with xtEra fo 2 020 time period. Section 4. In er for TCAP be informed of the passage of the resolution so that the me 's load ca a aggregated by NextEra, this section specifies that a `uv a res on should be sent to TCAP's Executive Director and 3137/10/5098893 5 Lloyd I TO: Gosselink ATTORNEYS AT LAW TCAP Members MEMORANDUM FROM: Geoffrey Gay, TCAP General Counsel DATE: January 13, 2016 816 Congress Avenue, Suite 1900 Austin, Texas 78701 512.322.5800p 512.472.0532 f RE: Video Explaining TCAP Contracting Process and Plan for Addressing Government Code Contract Disclosure Requirements CONFIDENTIAL/ATTORNEY-CLIENT COMMUNICATION lglawfarm.com Note: This memo is a confidential, attorney- client communication, for your eyes only. In addition to the contract approval resolution and model staff report that supports the resolution (which are not confidential) this memo contains a confidential password for use in opening a video link that describes TCAP's contracting process. You may want to show this roughly five minute video to your governing body. The link to the video is: http://tcqptx.com/moj/member-resources/member-pricing-options Additionally, this communication is to assure you that TCAP is aware of new disclosure requirements imposed upon political subdivisions by H.B. No. 1295 which amends the Government Code by adding Section 2252.908. TCAP will complete the disclosure form and provide it to each member along with the return of a signed Commercial Electric Supply Agreement (CESA), the official contract for energy supply for the 2018-2022 period. A future memo will describe the planned process. 3137/10/6654170 Confidential password is: tcap2016 Lloyd Gosselink Rochelle & Townsend, PC CITY OF ANNA, TEXAS AGENDA SUBJECT: Item No. 10 City Secretary's use only City Council Agenda Staff Report Date: Staff Contact: Exhibits: February 23, 2016 City Manager N/A 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: SUMMARY: 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). b. discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); acquisition of right-of-way, easements, and land for municipal facilities. The Council further reserves the right to enter into closed session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. STAFF RECOMMENDATION: CITY OF ANNA, TEXAS Item No. 11 City Secretary's use only City Council Agenda Staff Report Date: February 23, 2016 Staff Contact: City Manager Exhibits: N/A AGENDA SUBJECT: Consider/Discuss/Action on any items listed on the posted agenda or any closed session occurring during this meeting, as necessary. SUMMARY: STAFF RECOMMENDATION: CITY OF ANNA, TEXAS AGENDA SUBJECT: Adjourn SUMMARY: Item to adjourn the meeting. STAFF RECOMMENDATION: Staff recommends a motion to adjourn. Item No. 12 City Secretary's use only City Council Agenda Staff Report Date: Staff Contact: Exhibits: February 23, 2016 City Manager None