06/18/2018-CC-Agenda Packet-RegularBANGER
*TEXAS
AGENDA
CITY COUNCIL REGULAR MEETING
MONDAY, JUNE 18, 2018
7:00 PM
502 ELM STREET
SANGER, TEXAS
1. Call Meeting to Order, Invocation, Pledge of Allegiance.
2. CITIZEN INPUT: (Citizens are allowed 3 minutes to speak. The City Council is unable
to respond or to discuss any issues brought up during this section).
3. CONSENT AGENDA:
a) Approval of Minutes:
1. City Council Work Session Meeting, June 4, 2018
2. City Council Regular Meeting, June 4, 2018
b) Disbursements.
c) Appoint Victoria Eakman as Deputy Court Clerk for Remainder of Term (June
2019).
d) Approve Reappointing Existing Board Members for a Two -Year Term:
Planning and Zoning Commission —
Sandra Hensley, Place 4
Board of Adjustment —
Sandra Hensley, Place 4
Parks Board —
Carrie Bilyeu, Place 2
David Cale Trail, Place 4
Library Board —
Beth Avery, Place 2
4. Consider Any Items Removed from Consent Agenda.
REGULAR AGENDA
5. Second Reading of Resolution # 06-06-18 — Approving a Project and Grant Agreement
Between the Sanger Texas Development Corporation and the City of Sanger
Providing for the Construction of a 3,200 Square Feet Picnic Pavilion at the John
Porter Park at a Cost Not to Exceed $85,000.
6. Consider, Discuss and Act on Resolution # 06-06-18 — Approving a Project and Grant
Agreement Between the Sanger Texas Development Corporation and the City of
Sanger Providing for the Construction of a 3,200 Square Feet Picnic Pavilion at the
John Porter Park at a Cost Not to Exceed $85,000. Authorizing Execution of the
Agreement and all Necessary Documents by the Mayor; and, Providing for an
Effective Date.
7. Consider, Discuss and Act on Resolution 06-09-18 - Suspending the Effective Date
for Ninety Days in Connection with the Rate Increase Filing Made On About On June
1, 2018 by Atmos Energy For its Mid -Tex Division; Finding That the Meeting Complies
With the Open Meetings Act; Making Other Findings and Provisions Related to the
Subject; and Declaring an Effective Date.
8. INFORMATION ITEMS:
a) All American Dogs Report
b) Atmos Energy Rider GCR — Rate Filing Under Docket No. 10170
9. FUTURE AGENDA ITEMS: (The purpose of this item is to allow the Mayor and
members of Council to bring forward items they wish to discuss at a future meeting,
A Council Member may inquire about a subject for which notice has not been given.
A statement of specific factual information or the recitation of existing policy may be
given. Any deliberation shall be limited to a proposal to place the subject on an
agenda for a subsequent meeting. Items may be placed on a future meeting agenda
with a consensus of the Council or at the call of the Mayor).
10. ADJOURN.
I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on
the City Website, and on the bulletin board, at the City Hall of the City of Sanger, Texas, a
place convenient and readily accessible to t eneral public at all times. Said notice was
posted on the following date and time: �7 at ' 30 - Z •
M., and remained posted continuously fora least 72 hours prior to the scheduled time of
said meeting and shall remain posted until meeting is adjourned.
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This facility is wheelchair accessible and accessible parking spaces are available.
Requests for accommodations or interpretive services must be made 48 hours prior to
this meeting. Please contact the City Secretary's office at (940) 458-7930 for further
information
CITY OF SANGER, TEXAS
MINUTES: CITY COUNCIL WORK SESSION
June 4, 2018 - 6:00 PM
502 Elm Street, Sanger, Texas
COUNCIL MEMBERS PRESENT: Mayor Thomas Muir, Councilman Bill Boutwell,
Councilman Gary Bilyeu, Councilman Lee Allison, Councilman David Clark,
Councilman Allen Chick
COUNCIL MEMBERS ABSENT: The Mayor and all Council Members were present
constituting a quorum.
STAFF MEMBERS PRESENT: Alina Ciocan, Acting City Manager; Jim Berman, Director
of Parks and Recreation; Ramie Hammonds, Building Official; Muzaib Riaz, Planner;
Cheryl Price, City Secretary.
1. Call Meeting to Order
Mayor Muir called the Work Session to order at 6:05 PM. He noted that the
presentation by Tatum Whitewood for the proposed events pavilion was a short
presentation and would be moved to first on the work session.
2. Presentation by Perkins Engineering Consultants, Inc. on the Updated Water
and Wastewater Capital Improvement Plan.
David Hawkins, Perkins Engineering Consultants was recognized and presented the
updated Water and Wastewater Capital Improvement Plan. He gave a brief overview
noting they worked hand in hand with staff and the biggest effort was with the water
side. He noted how they researched the projects; and, that operation, maintenance
and projected growth are all factored into this. In 2014 they did a report on the
supply storage and at that time he used a 5% growth rate and the NCTCOG had it at
4% growth rate. The main discussion with Mike Brice and Neal Welch was how far
out do we want to project and 2030 was picked. They did their analysis on the water
and he referenced a map of the various waterline improvements which are included
in the report in the agenda packet. On the water side there will be replacement of
substandard lines. The FM 455 project is going to be a large ticket item and also, the
need to upgrade the pump (#8) at the pump station by Public Works and it will need
to be done by 2023. Those are the two large projects. On the sewer side they are
closing some loops to get better pressure distribution, and (maps in packet)
improvements along FM 455 and scattered throughout and improved service along I-
35. On the wastewater side they will also be replacing substandard lines. For water
and sewer, 2023 is going to be getting a lot of the City's existing system up to
standard. In 2030 he noted that it is a guess where everything will be growing and
looping in the water system. There is also noted in the report to start working with
Bolivar Water system because of the cases where they have the water and the City
of Sanger has the sewer. He noted the total cost to do the 2023 improvements is
12.8 million and the 2030 improvements is 16.4 million combined all together water
and sewer it totals to 58.3 million. He noted how they calculated the impact fees.
That it is a high cost; but, compared to other cities it is not that much. He noted that
Anna currently is around $4,000 to $5,000 just for sewer. He noted that staff could
call around and see what some of the other cities are doing. The numbers they used
were realistic. Mayor Muir noted that we have to have a plan and that is what this is.
There were several questions from the Council regarding various aspects of the plan.
He recommended one standard for everyone, but it is the City's call and discussion
ensued on various ways for the funding of improvements and future development,
such as a developer funding the development and getting reimbursed. He noted he
was willing to help the City in any way he can; and, that he knows this is a difficult
decision.
3. Presentation by Tatum Whitewood on a proposed Event Pavilion Located at
Porter Sports Complex.
Tatum Whitewood, 2018 graduate of Sanger High School and Valedictorian of her
class was recognized. She summarized that she was very involved with FFA and
the District 7 Association of Texas and was selected as a Ford Leadership Scholar.
They choose 10 Junior students every year to do a service project. She gave a
history of how the project came about and the interview process with Ford. She was
selected to do a community event project and she chose a large event pavilion in
Porter Park as her project. She thought it would make a great place for family
reunions, receptions, concerts, school events, etc. The event pavilion is 40' x 80'
and would have a dark green roof and stone columns to match the rest of Porter
Park. She stated that she was not provided any funding by Ford; but, was provided
a mentor for the project. She explained all of the work she did working with a builder
and the Parks and Recreation Board and she was able to save the city $28,000
versus if the city was to build it. She provided a power point presentation which she
presented to the 4B Board who agreed to fund her the $56,000 for the project. She
is asking that the City Council help support her project and help make Sanger a
better place for everyone. She noted that the rental of the pavilion would generate
some revenue. There were some miscellaneous questions regarding the
construction of the project and the hours she has spent on the project. She noted
that she thought that it would take about a month, depending on weather to
complete the project. Councilman Bilyeu asked staff if this has been reviewed. Jim
Berman, Parks and Recreation Director noted that it has been reviewed and has
been approved by 4B. It is a pre-fab building, the engineering cost comes in for the
foundation. It will have electricial but no water to the building. There are no sides
enclosed. There will be 10 posts that will be stone columns. Ms. Whitewood noted
that the price includes ten (10) picnic tables for under the pavilion. It was noted the
roof panel would be the same panel that is on the other facilities in the park.
Prompted by Councilman Bilyeu, Ms. Whitewood provided a detailed summary of
the time and effort she spent to get to where she is today. She noted the people who
were going to donate their time and services. She stated that she didn't think it was
going to be as hard as it was and she is really glad she can stand in front of the
Council today and that the 4B Board supported her vision and she hoped the
Council also would support it. Councilman Bilyeu noted he was impressed.
Alina Ciocan, Acting City Manager noted that 4B approved $85,000 for the pavilion.
Tonight, it will not be voted on because we have to have two readings of the
Resolution, and the first reading will be tonight. At the next meeting we have the
second reading and then Council would vote. Jim Berman, Director of Parks and
Recreation noted that there would be more information provided during the agenda
item. Councilman Bilyeu asked how long it would take. Mr. Berman advised that it
would be 60 days from the Public Hearing, if the project is approved on the 18t". It
was noted the location would be by the parking lot. Ms. Whitewood thanked the
Council and the Mayor thanked her for all of the effort and all of the work.
4. Overview of Items on Regular Agenda.
Muzaib Riaz, Planner was recognized and noted on Item No. 25 that the Preliminary
Plat for Arrowhead Estates indicates 14 Lots on the Agenda and it should be 16 Lots.
Alina Ciocan noted that Item No. 8 on the Agenda tonight is regarding appointing
members to the Fire Code Board of Appeals. She noted that when we adopted the
2012 International Fire Code that we in essence established a board. To this point
we have not appointed anyone to the board; however, we recently have been
challenged on an interpretation of the code for one of our projects. We are
appointing members to the board and per the International Fire Code the members
have to have knowledge, training and expertise to issue on matters related to fire. In
this instance, board member do not have to live in the City Limits because they are
required to have the knowledge and expertise to rule on the matters. Also, they
cannot be employees of the jurisdiction.
EjewLiquIng
There being no further business, Mayor Muir adjourned the Work Session at 6:53
PM.
CITY OF SANGER, TEXAS
MINUTES: REGULAR CITY COUNCIL MEETING
June 4, 2018 — 7:00 PM.
502 Elm Street, Sanger, Texas
COUNCIL MEMBERS PRESENT: Mayor Thomas Muir, Councilman Lee Allison,
Councilman David Clark, Councilman Gary Bilyeu, Councilman Bill Boutwell,
Councilman Allen Chick
COUNCIL MEMBERS ABSENT: The Mayor and all Council Members were present
constituting a quorum.
STAFF MEMBERS PRESENT: Alina Ciocan, Acting City Manager; Ramie Hammonds,
Building Official; Muzaib Riaz, Planner; Jim Berman, Parks and Recreation Director;
Cheryl Price, City Secretary.
1. Call Meeting to Order, Invocation, Pledge of Allegiance.
The Regular City Council Meeting was called to order by Mayor Muir on Monday, June
4th, 2018 at 7:07 PM. The Invocation was given by Councilman Allison. The .Pledge of
Allegiance was led by Councilman Bilyeu.
2. Issue Certificate of Election, Statement of Elected Official and Oath of Office to
Council Member Place 4, Allen Chick.
City Secretary, Cheryl Price administered the Certificate of Election, Statement of
Elected Official and Oath of Office to Allen Chick, Councilman Place 4.
3. CITIZEN INPUT: (Citizens are allowed 3 minutes to speak. The City Council is
unable to respond or to discuss any issues brought up during this section).
There were no citizens who approached the podium to speak.
4. CONSENT AGENDA:
a) Approval of Minutes:
1. City Council Work Session May 21, 2018
2. City Council Regular Meeting May 21, 2018
b) Disbursements.
A motion was made by Councilman Boutwell to approve the Consent Agenda as
presented. The motion was seconded by Councilman Bilyeu. The motion carried
unanimously 5-0 vote.
5. Consider Any Items Removed from Consent Agenda.
None.
REGULAR AGENDA
6. First Reading of Resolution # 06-06-18 — Approving a Project and Grant
Agreement Between the Sanger Texas Development Corporation and the City of
Sanger Providing for the Construction of a 3,200 Square Feet Picnic Pavilion at
the John Porter Park at a Cost Not to Exceed $85,000.
Jim Berman, Director of Parks and Recreation was recognized. He summarized that
Tatum Whitewood came to the 4B Development Corporation and made her presentation
for the Pavilion. The only way we could do the project is if it became a city project. The
reason why the amount is different than her funding request is that in the event that she
walked away from the project, we would have to finish it. There was a Public Hearing
Held on April 17th and there was no opposition to the project. The 4B Development
Corporation approved the project and forwarded it to Council. According to Section 505
of the Texas Local Government Code we have to have two readings of the Resolution
and tonight would be the first reading. Councilman Bilyeu noted for the record that
Tatum Whitewood, through her hard work and donations, was able to get the amount
for the Pavilion to just under $56,000.
Mayor Muir read Resolution #06-06-18 in its entirety as the required first reading:
RESOLUTION # 06-06-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANGER,
TEXAS, APPROVING A PROJECT AND GRANT AGREEMENT BETWEEN
THE SANGER TEXAS DEVELOPMENT CORPORATION AND THE CITY
OF SANGER PROVIDING FOR THE CONSTRUCTION OF A 3,200 SQUARE
FEET PICNIC PAVILION AT THE JOHN PORTER PARK AT A COST NOT
TO EXCEED $85,000; AUTHORIZING EXECUTION OF THIS AGREEMENT
AND ALL NECESSARY DOCUMENTS BY THE MAYOR; AND PROVIDING
FOR AN EFFECTIVE DATE.
WHEREAS, the Sanger Texas Development Corporation desires to enter into an agreement
with the City of Sanger to construct a picnic pavilion, 3,200 square feet in area ("Project") at
a cost not to exceed $85,000;
WHEREAS, this Project will provide additional covered space in the John Porter Park, which
would allow for large scale events under a covered facility;
WHEREAS, Section 505.158 (b) of the Texas Local Government Code requires that such
Project should not be undertaken until the City Council has given a resolution approving such
Project at least two separate readings; and
WHEREAS, the City Council desires to give the resolution approving the Project such
readings and approval so that the Project may proceed to enhance and expand the quality of
life opportunities within the City of Sanger, Texas in accordance with the terms of the Grant
Agreement which is attached hereto as Exhibit "A";
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF COUNCIL OF SANGER,
TEXAS THAT:
Section 1. That the City Council has reviewed the Project described herein and has determined
that the Project will promote community activity and enhance the quality of life of the City
and accordingly promotes a public purpose.
Section 2. That the terms and conditions of the Grant Agreement, attached hereto as Exhibit
"A" and made part hereof for all purposes, having been reviewed by the City Council of the
City of Sanger, Texas, and found to be acceptable and in the best interests of the City of Sanger
and its citizens, said Agreement is hereby in all things approved.
Section 3. That the Sanger Texas Development Corporation is authorized to enter into
appropriate agreement with the City of Sanger for the construction of a picnic pavilion at the
John Porter Park, to provide such or appropriate grants or funds available at the discretion of
the Board of Directors of the Development Corporation.
Section 4. That the Mayor is hereby authorized to execute the attached Agreement and all
other necessary documents in connection therewith on behalf of the City of Sanger, according
to the terms and conditions set forth in the Agreement and this Resolution.
Section 5. This Resolution shall take effect after its second reading and immediately from and
after its passage by the City Council, and it is, accordingly, so resolved.
Mayor Muir noted that Council would take this under advisement and there would be no
action can be taken until the second reading.
7. Consider, Discuss and Act on Resolution # 06-07-18 — Establishing a Grant
Program for the Sanger Texas Development Corporation; Approving Grant
Guidelines and Providing for an Effective Date.
RESOLUTION #06-07-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS,
APPROVING CONSIDERATION OF GRANT GUIDELINES AND GRANT
APPLICATION FOR THE SANGER TEXAS DEVELOPMENT CORPORATION AND
PROVIDING FOR AN EFFECTIVE DATE.
Jim Berman, Director of Parks and Recreation was recognized. He advised that when
Tatum Whitewood went before the 4B Development Corporation with her project, it was
discovered that the 4B Development Corporation did not have a procedure to do
community grants. The Board wanted to establish a grant program so this Resolution
is to establish grant guidelines and an application process. The 4B Development
Corporation approved this resolution at the April 17t" meeting. Once the Resolution is
in place, the Board will have to budget for it and also advertise that it is available. He
advised that the guidelines note the types of projects, scheduling and review process
for grants and the 4B Board will set priorities. Acting City Manager, Alina Ciocan noted
that the 4B Board is very conservative with the direction they want to take with their
funding. Tatum Whitewood's project opened their eyes that there may be an opportunity
for such grants; and, that they did not have a process in place. This will set up the
process. It was noted that $10,000 is their threshold. Councilman Bilyeu noted that the
there were some discrepancies in the Sanger Texas Development Corporation name
and acronyms (STDC) the Grant Agreement and staff noted the Scribner's errors would
be corrected.
A motion was made by Councilman Bilyeu approve Resolution #06-07-18 — Establishing
a Grant Program for the Sanger Texas Development Corporation; approving Grant
Guidelines and providing for an effective date. The motion was seconded by
Councilman Boutwell. The motion carried unanimously 5-0.
8. Consider, Discuss and Act on Resolution # 06-08-18 — Appointing Members to the
Fire Code Board of Appeals and Providing for an Effective Date.
RESOLUTION #06-8-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS
APPOINTING MEMBERS TO THE FIRE CODE BOARD OF APPEALS; AND
PROVIDING FOR AN EFFECTIVE DATE.
Acting City Manager, Alina Ciocan advised that when we adopted the 2012 International
Fire Code, we in essence created a board. To this point we have not appointed anyone
to the board; however, we recently have been challenged on an interpretation of the
code for one of our projects. We are appointing members to the board and per the
International Fire Code the members have to have knowledge, training and expertise to
issue on matters related to fire. Board members would not have to live in the city limits
because they are required to have the knowledge and expertise to rule on the matters;
and, they cannot be employees of the jurisdiction. Mayor Muir noted the experience that
was on the applications for the board members. Councilman Clark questioned how long
the board members would hold the position on the board. Ms. Ciocan noted that she
initially had a term limit on the resolution and after review by the City Attorney he stated
that based on the Fire Code that the board members serve at the pleasure of Council.
Council may appoint them on a two-year basis like any other board. The same rules
apply as any other board. They will meet as needed.
A motion was made by Councilman Bilyeu to approve Resolution # 06-08-18 —
Appointing Members to the Fire Code Board of Appeals and Providing for an Effective
Date. The motion was seconded by Councilman Chick. The motion carried unanimously
5-0 vote.
9. Consider, Discuss and Possibly Act on Ordinance # 06-16-18 — Amending Chapter
15, Parks and Recreation, Article 15.500 "Parkland Dedication", Sec. 15.502
"Applicability" and Sec. 15.508 "Submitting Fee."
ORDINANCE #06-16-18
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS
AMENDING CHAPTER 15, PARKS AND RECREATION OF THE CODE OF
ORDINANCES; ARTICLE 15.500 "PARKLAND DEDICATION', SEC. 15.502
`APPLICABILITY' AND SEC 15.508 `SUBMITTING FEE'; PROVIDING FOR THE
REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING FOR A PENALTY;
PROVIDING A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE
DATE.
Jim Berman, Director of Parks and Recreation was recognized. He advised that in
February of 2017 he came to the Council with Ordinance No. 02-07-17 Establishing
Parkland Dedication Fees and since that was done staff has discovered some areas
that need clarification in our ordinance. He reviewed the changes. In applicability
changing to 6 or more lots. On the fee submittal the fee to be paid prior to filing
recordation. Staff noted that it was vague and this would help make the requirement
clear. A typographical error was noted by Councilman Bilyeu change filling to "Filing".
A motion was made by Councilman Boutwell to approve Ordinance # 06-16-18 —
amending Chapter 15, Parks and Recreation, Article 15.500 "Parkland Dedication", Sec.
15.502 "Applicability" and Sec. 15.508 "Submitting Fee." The motion was seconded by
Councilman Allison. The motion carried unanimously with a 5-0 vote.
10. Conduct a Public Hearing Regarding a Request to Amend Planned Development
District Created by Ordinance #06-18-17 (PD-SF-06) to Extend Boundaries from
Willowood Addition to Include an Approximate Additional 3.634 Acres and
Rezone Said Acreage From "A" Agricultural District to Planned Development
District (PD-SF-06). The Property is Generally Located West of Rector Road and
Railroad Line and North of Eider Drive and First Street.
Planner, Muzaib Riaz summarized the request. This request by the applicant adds
3.634 Acres into the planned development which will add 13 residential lots and two
(2) common area lots into the development. The lots will meet the PD requirements
and four lots will meet the minimum dwelling size requirements of 1800 square feet and
two of them will have a minimum dwelling size of 1600 square feet. The zoning change
meets the future land use plan at 6 units per acre and meets all subdivision regulations
and staff recommends approval.
Mayor Muir opened the Public Hearing at 7:40 PM and solicited anyone who wished to
speak. There being no citizens approaching the podium who wished to speak, the
public hearing was closed at 7:41 PM.
11. Consider, Discuss and Act on Ordinance # 05-10-18 - Amending the
Comprehensive Zoning Ordinance and the Official Zoning Map by Amending the
Planned Development District Created by Ordinance #06-18-17 (PD-SF-06) to
Extend the Boundaries to Include An Approximately 3.634 Acre Tract and Rezone
Said Tract From "A" Agricultural District to Planned Development District PD-SF-
06 and Amending Section 3 "Area Regulations." The Property is Generally
Located West of Rector Road and Railroad Line and North of Eider Drive and First
Street.
ORDINANCE# 05-10-18
AN ORDINANCE OF THE CITY OF SANGER, DENTON COUNTY, TEXAS, AMENDING
THE COMPREHENSIVE ZONING ORDINANCE AND THE OFFICIAL ZONING MAP.
AS HERETOFORE AMENDED BY AMENDING THE PLANNED DEVELOPMENT
DISTRICT CREATED BY ORDINANCE 06-18-17 (PD-SF-06) TO EXTEND THE
BOUNDARIES THEREOF TO INCLUDE AN APPROXIMATELY 3.634 ACRE TRACT
THEREIN AND REZONE SAID TRACT FROM "A" AGRICULTURE DISTRICT TO
PLANNED DEVELOPMENT DISTRICT PD-SF-06 AND AMENDING SECTION 3 "AREA
REGULATIONS"; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN
CONFLICT; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR A
PENALTY OF FINE NOT TO EXCEED THE SUM OF TWO THOUSAND DOLLARS
($2,000.00) FOR EACH OFFENSE; AND PROVIDING FOR AN EFFECTIVE DATE.
Mayor Muir noted for the record that Councilman Allison recused himself for this item
because his engineering firm worked on the project.
Planner, Muzaib Riaz noted that in Section 3 G there was an addition to the Ordinance
which reads as follows:
G. Lots may be reallocated administratively; and, on a case -by -case basis by City
staff at the request of the developer and or builder as long as the total number
of lots for each category of minimum dwelling unit size remains the same within
the Willowwood PD (PD-SF-06) as a whole, and the developer and/or builder
owns the lots proposed for reallocation.
Staff noted that this was not in the original Ordinance and that it allows for a little more
flexibility. Mayor Muir noted that this was an area that the developer acquired after
approval after the original plat. The developer was encouraged to try and obtain the
property so that First Street could be extended into the Quail Run addition. This
incorporates the extra property they were able to acquire into the Planned Development.
Councilman Boutwell noted that 26 notices were mailed out for Notification of the Public
Hearing and none were returned. Staff has reviewed this and recommends Approval.
A motion was made by Councilman Boutwell to approve Ordinance #05-10-18 -
amending the Comprehensive Zoning Ordinance and the Official Zoning Map by
amending the Planned Development District created by Ordinance #06-18-17 (PD-SF-
06) to extend the boundaries to include an approximately 3.634 acre tract and rezone
said tract From "A" Agricultural District to Planned Development District PD-SF-06 and
amending Section 3 "Area Regulations." The property is generally located west of
Rector Road and Railroad Line and north of Eider Drive and First Street. Councilman
Bilyeu asked a few questions regarding the layout and it was noted that it would be
further discussed on the plat approval later in the agenda. The Motion was seconded
By Councilman Chick. The motion carried unanimously with a 4-0 with no vote from
Councilman Allision who recused himself from the meeting because his engineering
firm was involved with the subdivision.
12. Conduct a Public Hearing Regarding the Replat of the Willowood Addition,
Approximately 34.58 Acres of Land Situated in the H. Tierwester Survey Abstract
No. 1241, Generally Located West of Rector Road and Railroad Line and North of
Eider Drive and First Street.
Planner, Muzaib Riaz summarized. He noted this is the replat of the Willowood Additon
to include 13 residential lots and 2 lots to be used for drainage and detention purposes.
The total number of lots proposed for Willowood Addition is 174 residential lots and 3
common area lots. The lots meet the regulations for size of yards and size of lots as
mentioned in the Planned Development Stipulations. The property is located within the
City of Sanger City limits. All pubic utilities will be will be provided by the City of Sanger.
The Public Hearing was opened at 7:50 PM and solicited anyone who wished to speak.
There being no citizens approaching the podium who wished to speak, the public
hearing was closed at 7:51 PM.
13. Consider, Discuss and Act on the Replat of the Willowood Addition,
Approximately 34.58 Acres of Land Situated in the H. Tierwester Survey Abstract
No. 1241, Generally Located West of Rector Road and Railroad Line and North of
Eider Drive and First Street.
There was discussion regarding the location of the common areas and the location of
the additional lots. Planner, Muzaib Riaz noted the locations of the lots and the
minimum square footage. It was noted by the developer that the detention pond would
be fenced in and sprinklered. There would be a combination lock access for residents.
And it would be maintained by the Homeowners Association. It was noted the pond
was about 12 feet deep. They got rid of one of the ponds with the additional land. It
was noted that the street would be constructed by the developer.
A motion was made by Councilman Boutwell to approve the replat of the Willowood
Addition, approximately 34.58 acres of land situated in the H. Tierwester Survey
Abstract No. 1241, generally located west of Rector Road and Railroad Line and north
of Eider Drive and First Street. The motion was seconded by Councilman Clark. The
motion carried unanimously 4-0 Vote — with no vote from Councilman Allision who
recused himself from the meeting because his engineering firm was involved with the
subdivision.
Councilman Allision returned to the meeting.
14. Conduct a Public Hearing Regarding a Request to Amend the Comprehensive
Land Use Plan and Future Land Use Map from Rural Residential Use and
Commercial Use to Industrial Use for Approximately 55.147 Acres Situated in the
William Mason Survey Abstract No. 801, and Generally Located West of 1-35 North
and Approximately 650 feet South of View Road.
Planner, Muzaib Riaz summarized. This is a request for an amendment to the
Comprehensive Plan and Future Land Us Plan to amend the land use designation on
sites totaling approximately 55.147 acres, from Rural Residential use and Commercial
use, to Industrial use to allow for industrial development. The property on the North,
West and South have a designation of Rural Residential use and Commercial use. The
property on the east across 1-35 has a designation of Industrial use in the
Comprehensive Open and Future Land Use Plan. Part of the zoning is Industrial Use
and part of it is Mobile Home Park. The are proposing to expand the current "Trailer
or Mobile Home Sales or Rental" use and develop a 93.754 square foot building RV
Sales with associated improvements.
Mayor Muir noted that items 14-18 on the Agenda are all tied together.
Mayor Muir opened the Public Hearing at 8:05 PM and solicited anyone who wished to
speak. There being no citizens approaching the podium who wished to speak, the
public hearing was closed at 8:06 PM.
15. Consider, Discuss and Act on Ordinance #05-11-18 - Amending the
Comprehensive Land Use Plan and Future Land Use Map by Changing the Use
Classification from Rural Residential Use and Commercial to Industrial On a
Certain Approximately 55.147 Acres Situated in the William Mason Survey
Abstract No. 801, and Generally Located West of 1-35 North and Approximately
650 feet South of View Road.
ORDINANCE# 05-12-18
AN ORDINANCE OF THE CITY OF SANGER, DENTON COUNTY, TEXAS,
AMENDING THE COMPREHENSIVE ZONING ORDINANCE AND THE OFFICIAL
ZONING MAP BY CHANGING THE ZONING CLASSIFICATION FROM "A"
AGRICULTURAL DISTRICT TO "I-1" INDUSTRIAL DISTRICT ON
APPROXIMATELY 55.147 ACRES SITUATED IN THE WILLIAM MASON SURVEY
ABSTRACT NO. 801, AND GENERALLY LOCATED WEST OF 1-35 NORTH AND
APPROXIMATELY 650 FEET SOUTH OF VIEW ROAD; PROVIDING FOR THE
REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING FOR A SEVERABILITY
CLAUSE; PROVIDING FOR A PENALTY OF FINE NOT TO EXCEED THE SUM OF
TWO THOUSAND DOLLARS ($2,000.00) FOR EACH OFFENSE; AND PROVIDING
FOR AN EFFECTIVE DATE.
The building they propose to build will be a 93,754 square foot building for RV Sales. It
was noted the RV Parking was actually a non -conforming use. If it were to get destroyed
by an act of nature, it could not be rebuilt.
Councilman Allison noted that it surprises him that an RV Sales would be allowed in
Industrial zoning. It ws noted that in the near future staff would be reviewing the zoning
table and looking at these types of issues. The Applicant's Representative, Hannah
Blackwell was recognized. She noted they do have an existing building that they want
to expand. They do a lot of work on the RV's and want to make sure they are in pristine
condition before they are sold. She noted that they are not going to close any of their
other facilities to expand this one. They want to get the property zoned all industrial.
There are some infrastructure and TCEQ requirements that only allow a certain amount
of septic area per lot. They are having to divide the size of the lot to facilitate this.
Councilman Boutwell asked if there were sewer lines anywhere near the area? It was
noted there was no sewer lines near the property they could tie into. It was noted that
this property is completely within the city limits. There was further discussion regarding
providing sewer to the property.
A motion was made by Councilman Allison to approve Ordinance #05-11-18 - amending
the Comprehensive Land Use Plan and Future Land Use Map by changing the Use
Classification from Rural Residential Use and Commercial to Industrial on a certain
approximately 55.147 acres situated in the William Mason Survey Abstract No. 801, and
generally located west of 1-35 north and approximately 650 feet south of View Road.
The motion was seconded by Councilman Boutwell. Councilman Chick prompted
further discussion regarding the zoning around the property, the Comprehensive Land
Use Plan, zoning and zoning buffers. Acting City Manager Alina Ciocan noted that the
last time we looked at the Comprehensive Plan was in 2007 It was noted that the
existing building is on the back lot and the new building will be on the front area. The
motion carried unanimously with a 5-0 vote.
16. Conduct a Public Hearing Regarding a Request to Rezone Approximately 55.147
Acres From "A" Agricultural District to 1-1 Industrial District, Situated in the
William Mason Survey Abstract No. 801, and Generally Located West of 1-35 North
and Approximately 650 feet South of View Road.
The Public Hearing was opened at 8:34 PM and solicited anyone who wished to speak.
There being no citizens approaching the podium who wished to speak, the public
hearing was closed at 8:34 PM.
17. Consider, Discuss and Act on Ordinance # 05-12-18 - Amending the
Comprehensive Zoning Ordinance and the Official Zoning Map by Changing the
Zoning Classification From "A" Agricultural District to 1-1 Industrial District on
Approximately 55.147 Acres Situated in the William Mason Survey Abstract No.
801, and Generally Located West of 1-35 North and Approximately 650 feet South
of View Road.
ORDINANCE# 05-12-18
AN ORDINANCE OF THE CITY OF SANGER, DENTON COUNTY, TEXAS, AMENDING
THE COMPREHENSIVE ZONING ORDINANCE AND THE OFFICIAL ZONING MAP
BY CHANGING THE ZONING CLASSIFICATION FROM "A" AGRICULTURAL
DISTRICT TO "I-1" INDUSTRIAL DISTRICT ON APPROXIMATELY 55.147 ACRES
SITUATED IN THE WILLIAM MASON SURVEY ABSTRACT NO. 801, AND
GENERALLY LOCATED WEST OF 1-35 NORTH AND APPROXIMATELY 650 FEET
SOUTH OF VIEW ROAD; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN
CONFLICT; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR A
PENALTY OF FINE NOT TO EXCEED THE SUM OF TWO THOUSAND DOLLARS
($2,000.00) FOR EACH OFFENSE; AND PROVIDING FOR AN EFFECTIVE DATE.
A motion was made by Councilman Allison to approve Ordinance # 05-12-18 -
amending the Comprehensive Zoning Ordinance and the Official Zoning Map by
changing the Zoning Classification From "A" Agricultural District to 1-1 Industrial District
on approximately 55.147 acres situated in the William Mason Survey Abstract No. 801,
and generally located west of 1-35 north and approximately 650 feet south of View Road.
The motion was seconded by Councilman Boutwell. The motion carried unanimously
5-0 vote.
18. Consider, Discuss and Act on the Final Plat of Lot 1 and Lot 2, Block 1, McClain
Acres, Being 55.147 Acres and Situated in the William Mason Survey Abstract No.
801, and Generally Located West of 1-35 North and Approximately 650 Feet South
of View Road.
Planner, Muzaib Riaz summarized noting the property is 55.147 acres and is proposing
to subdivide into two lots of record with Lot 1 being 23.512 acres; and, Lot 2 being
31.635 acres. It meets the subdivision regulations and has septic and they have water
wells.
A motion was made by Councilman Boutwell to approve the Final Plat of Lot 1 and Lot
2, Block 1, McClain Acres, being 55.147 acres and situated in the William Mason Survey
Abstract No. 801, and generally located West of 1-35 North and Approximately 650 Feet
South of View Road. The motion was seconded by Councilman Allison. There were
questions by Councilman Bilyeu and it opened discussion regarding the uses and it was
noted that on the front side is mobile home sales and the back side is grandfathered as
a mobile home park. Mobile home park is not permitted in Industrial but mobile home
sales is allowed. The motion carried unanimously with a 5-0 vote.
19. Conduct a Public Hearing Regarding a Request for a Specific Use Permit (SUP)
for a Temporary Concrete Batch Plant at the R & L Carriers Job Site Zoned as 1-1
Industrial District, Situated in B.F. Lynch Survey, Abstract #725, Known as R-L
Carriers Addition, Block 1, Lot 1, and Generally Located East of 1-35 and North of
View Road.
Planner, Muzaib Riaz summarized noting they are requesting to set up a temporary
concrete batch plant on 0.5 acres of property. They meet the 300-foot setback required
by TCEQ and the SUP is in conformance with the zoning ordinance and staff
recommends approval.
The Public Hearing was opened at 8:52 PM and solicited anyone who wished to speak.
There being no citizens approaching the podium who wished to speak, the public
hearing was closed at 8:53 PM.
20. Consider, Discuss and Act on Ordinance # 05-13-18 — Amending the
Comprehensive Zoning Ordinance and Zoning Map to Grant a Specific Use Permit
to Allow a Temporary Concrete Batch Plant as a Use at the R & L Carriers Job
Site, Generally Located East of 1-35 and North of View Road.
ORDINANCE# 05-13-18
AN ORDINANCE OF THE CITY OF SANGER, DENTON COUNTY, TEXAS, AMENDING THE
COMPREHENSIVE ZONING ORDINANCE AND ZONING MAP TO GRANT A SPECIFIC USE
PERMIT TO ALLOW A TEMPORARY CONCRETE BATCH PLANT AS A USE AT R&L CARRIERS
JOB SITE, GENERALLY LOCATED EAST OF I-35 AND NORTH OF VIEW ROAD; PROVIDING FOR
THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING FOR A SEVERABILITY
CLAUSE; PROVIDING FOR A PENALTY OF FINE NOT TO EXCEED THE SUM OF TWO
THOUSAND DOLLARS ($2,000) FOR EACH OFFENSE; AND PROVIDING FOR AN EFFECTIVE
DATE.
Planner, Muzaib Riaz noted that the applicant is proposing to have the temporary batch
plant for a term of approximately 1 year.
A motion was made by Councilman Boutwell to approve Ordinance # 05-13-18 —
amending the Comprehensive Zoning Ordinance and Zoning Map to grant a Specific
Use Permit to allow a temporary concrete batch plant as a use at the R & L Carriers job
site, generally located east of 1-35 and north of View Road. Councilman Clark noted
they had the SUP for one year; and, questioned if they are finished in 6 months will they
remove the site or use it for somewhere else. Staff noted that the plant is specific for
the site. There was discussion regarding temporary batch plants and it was noted that
this item needs to be reviewed by staff and to look at a possible change to the land use
table to allow short term batch plants. The motion was seconded by Councilman Bilyeu.
The motion carried unanimously with a 5-0 vote.
21. Consider, Discuss and Act on the Final Plat of Lots 1-3, Block A of Kirkland
Addition, Being 0.50 Acres Situated in the R. BeBee Survey A-29, and Generally
Located South of Kirkland Street and Approximately 76.80 Feet West of Sims
Street.
Planner, Muzaib Riaz summarized noting that this is a Final Plat of three lots located in
SF-10 zoning, it meets all of the minimum setbacks, and lot size requirements for SF-
10. Staff has found the plat to be in compliance with the requirements of the subdivision
ordinance and recommends approval. The subdivision will be served by all of the City
of Sanger utilities.
A motion was made by Councilman Bilyeu to approve the Final Plat of Lots 1-3, Block
A of Kirkland Addition, being 0.50 acres situated in the R. BeBee Survey A-29, and
generally located South of Kirkland Street and approximately 76.80 feet west of Sims
Street. The motion was seconded by Councilman Clark. The motion carried
unanimously with a 5-0 vote.
22. Consider, Discuss and Act on the Final Plat of Lots 1-2, Block A of Higgs Addition,
Being 5.779 Acres in the R. Beebee Survey Abstract No. 29 in the Extraterritorial
Jurisdiction (ETJ) of the City of Sanger, and Generally Located South of Lois
Road East, Approximately 264.02 Feet West of Huling Road, and Approximately
2397 Feet East of Marion Road.
Planner, Muzaib Riaz summarized noting the applicant is proposing to subdivide a tract
of land into two lots of record Lot 1 being 2.719 acres and Lot 2 being 2.719 acres. The
site is in the ETJ of the City of Sanger. Staff has sent the plat to Denton County for
courtesy review. County comments have been incorporated into the Plat. Staff has
found the plat to be in compliance with the requirements of the Subdivision Ordinance
and recommends approval.
Councilman Boutwell noted he was confused about the location and there was brief
discussion regarding the location. Councilman Bilyeu noted that there was a shortage
on the noted acreage and it was noted the missing amount was the dedicated right-of-
way.
A motion was made by Councilman Bilyeu to approve the final plat of Lots 1-2, Block A
of Higgs Addition, being 5.779 Acres in the R. Beebee Survey Abstract No. 29 in the
extraterritorial jurisdiction (ETJ) of the City of Sanger, and generally located south of
Lois Road East, approximately 264.02 feet west of Huling Road, and approximately
2397 feet east of Marion Road. The motion was seconded by Councilman Clark. The
motion carried unanimously with a 5-0 vote.
23. Consider, Discuss and Act on the Minor Plat of the Jeff Thomas Addition, Being
0.29 Acres in the W.A. Thompson Survey Abstract No. 1238, Generally Located
on the Southwest Corner of Elm Street and North 8t" Street.
Planner, Muzaib Riaz summarized noting the applicant is proposing to plat a single 0.29
acre lot for the purpose of developing a duplex. It is located on the southwest corner of
Elm and North 8th Street. The subject property is located within the 2-F District and
meets the minimum setback requirements and minimum lot size requirements. Utilities
will be provided by the City of Sanger.
A motion was made by Councilman Allison to approve the minor plat of the Jeff Thomas
Addition, being 0.29 Acres in the W.A. Thompson Survey Abstract No. 1238, generally
located on the Southwest Corner of Elm Street and north 8th Street. There was
discussion as to the location. The motion was seconded by Councilman Clark. The
motion carried with four (4) in favor and one (1) against — Councilman Chick voting in
opposition.
24. Consider, Discuss and Acton the Amended Plat of Lot 5R1-R and 5R2-R, Block
A, N.L. Hobbs Addition, Being an Amendment of Lot 5R1 and Lot 5R2, Block A,
N.L. Hobbs Addition, being 5.89 Acres of Land Situated in the Reuben Bebee
Survey Abstract No. 29, and Generally Located Northeast of the Intersection of
Marion Road and Sanger Circle Drive.
Planner, Muzaib Riaz summarized noting this is an amendment of an existing plat to
include a parking lot on the back lot to slightly change the configuration of the lots to
make sure that the parking stays with the storage unit. Staff has found the plat to be
in compliance with the requirements of the Subdivision Ordinance and Texas Local
Government Code.
A motion was made by Councilman Bilyeu to approve the Amended Plat of Lot 5R1-R
and 5R2-R, Block A, N.L. Hobbs Addition, Being an Amendment of Lot 5R1 and Lot
5R2, Block A, N.L. Hobbs Addition, being 5.89 Acres of Land Situated in the Reuben
Bebee Survey Abstract No. 29, and Generally Located Northeast of the Intersection of
Marion Road and Sanger Circle Drive. The motion was seconded by Councilman
Boutwell. The motion carried with four (4) in favor and one (1) against — Councilman
Chick voting in opposition.
25. Consider, Discuss and Act on the Preliminary Plat of Arrowhead Estates, Being
Approximately 3 Acres of Land and Being Subdivided int 14 Single Family
Residential Lots, situated in the H. Tierwester Survey, Abstract No. 1241, and
Generally Located at the Southeast corner of Willow Street and Railroad Avenue.
Planner, Muzaib Riaz summarized noting they are proposing to subdivide the property
into 16 single family residential los per existing SF-10 zoning district standards on
approximately 3 acres. The property meets the minimum setback requirements and
minimum lot size requirements for SF-10 District. Staff has found the plat to be in
compliance with the requirements of the Subdivision Ordinance and recommends
approval of the preliminary plat. Staff noted that the applicant engineer is present.
A motion was made by Councilman Boutwell to approve the preliminary plat of
Arrowhead Estates, being approximately 3 acres of land and being subdivided into 16
single-family residential lots, situated in the H. Tierwester Survey, Abstract No. 1241,
and generally located at the southeast corner of Willow Street and Railroad Avenue.
The motion was seconded by Councilman Chick. Staff noted that the subdivision
would be served by City of Sanger utilities. The motion carried unanimously with a 5-
0 vote.
26. EXECUTIVE SESSION: CLOSED MEETING
Pursuant to the Open Meetings Act, Chapter 551, the City Council Will Meet in in
a Closed Executive Session in Accordance with the Texas Government Code:
Section 551.074 to Discuss Personnel Matters:
a) To Deliberate Regarding A Proposed Employment Agreement Between the
City of Sanger and Alina Ciocan for the Position of City Manager.
The Mayor and City Council convened into closed Executive Session at 9:21 PM.
27. RECONVENE: OPEN MEETING
Council reconvened into open meeting at 10:16 PM
a) Act on a Proposed Employment Agreement Between the City of Sanger and
Alina Ciocan for the Position of City Manager.
Mayor Muir asked what Council's pleasure was coming out of Executive Session.
Councilman Bilyeu stated that with it is with pleasure that he proposes a motion to
approve the agreement that was discussed and offer the position of City Manager to
Alina Ciocan. The motion was seconded by Councilman Clark. The motion carried
unanimously with a 5-0 vote.
28. INFORMATION ITEMS:
a) Financial Statements - April 30, 2018
b) Capital Projects - May 31, 2018
There was brief discussion regarding Capital Project expenditures regarding the
wastewater treatment plant.
29. FUTURE AGENDA ITEMS: (The purpose of this item is to allow the Mayor and
members of Council to bring forward items they wish to discuss at a future
meeting, A Council Member may inquire about a subject for which notice has not
been given. A statement of specific factual information or the recitation of
existing policy may be given. Any deliberation shall be limited to a proposal to
place the subject on an agenda for a subsequent meeting. Items may be placed
on a future meeting agenda with a consensus of the Council or at the call of the
Mayor).
None.
K I _ ri11J7��
There being no further business Mayor Muir adjourned the meeting at 10:23 PM.
BANGER
* T E X A S COUNCIL AGENDA ITEM
AGENDA TYPE ® Regular ❑ Special ❑ Consent Reviewed by
❑ Yes
® Not Applicable
❑ Workshop ❑ Executive ❑ Public Hearing Finance
Reviewed by Legal
® Yes
❑Not Applicable
COUNCIL MEETING DATE: SUBMITTED BY.
JAMES BERMAN,
JUNE 18, 2018 DIRECTOR PARKS AND RECREATION
City Manager Reviewed/Approval Initials Date !�o
ACTION REQUESTED: ❑ORDINANCE ® RESOLUTION ❑ APPROVAL
❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT
❑ CONSENSUS ❑ REAPPOINTMENTS ❑ OTHER EXPLAIN:
AGENDA CAPTION
Second Reading of Resolution # 06-06-18 — Approving a Project and Grant Agreement Between the
Sanger Texas Development Corporation and the City of Sanger Providing for the Construction of a
3,200 Square Feet Picnic Pavilion at the John Porter Park at a Cost Not to Exceed $85,000. This
Pavilion Will be Located at The John Porter Sports Complex.
FINANCIAL SUMMARY
❑N/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE ❑CIP ❑BUDGETED ❑NON -BUDGETED
PRIOR
CURRENT
FUTURE
FISCAL YEAR:
YEAR
YEAR
YEARS
TOTALS
Proposed Expenditure Amount
$85,000.
$85,000.
Encumbered Amount
BALANCE
FUND(S) TO BE USED: General ❑$ Utility
❑ $ Special ® 85 000.
BACKGROUND/SUMMARY OF ITEM
This potential project was brought to the Sanger Texas Development Corporation by Tatum
Whitewood as a community service project. Seeing the community need for a large event outdoor
pavilion the Sanger Texas Development Corporation chose to fund this project as a Parks and
Recreation improvement project. After a public hearing held @ 6:00 pm. on April 17, 2018 with no
opposition to the project the board voted unanimously to fund this project and move the project
forward for council approval.
STAFF OPTIONS & RECOMMENDATION
Staff recommends approval.
List of Supporting Documents/Exhibits Attached:
Prior Action/Review by Council, Boards,
• Resolution
Commissions or Other Agencies:
• Funding Agreement
Sanger Texas Development Corporation approved at their
• Site Plan
April 17, 2018 meeting.
First Reading of Resolution by Council on June 4, 2018
RESOLUTION # 06-06-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANGER,
TEXAS, APPROVING A PROJECT AND GRANT AGREEMENT
BETWEEN THE SANGER TEXAS DEVELOPMENT CORPORATION
AND THE CITY OF SANGER PROVIDING FOR THE CONSTRUCTION
OF A 3,200 SQUARE FEET PICNIC PAVILION AT THE JOHN PORTER
PARK AT A COST NOT TO EXCEED $85,000; AUTHORIZING
EXECUTION OF THIS AGREEMENT AND ALL NECESSARY
DOCUMENTS BY THE MAYOR; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the Sanger Texas Development Corporation desires to enter into an
agreement with the City of Sanger to construct a picnic pavilion, 3,200 square feet in area
("Project") at a cost not to exceed $85,000;
WHEREAS, this Project will provide additional covered space in the John Porter Park,
which would allow for large scale events under a covered facility;
WHEREAS, Section 505.158 (b) of the Texas Local Government Code requires that such
Project should not be undertaken until the City Council has given a resolution approving such
Project at least two separate readings; and
WHEREAS, the City Council desires to give the resolution approving the Project such
readings and approval so that the Project may proceed to enhance and expand the quality of life
opportunities within the City of Sanger, Texas in accordance with the terms of the Grant
Agreement which is attached hereto as Exhibit "A";
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF COUNCIL OF
SANGER, TEXAS THAT:
Section 1. That the City Council has reviewed the Project described herein and has
determined that the Project will promote community activity and enhance the quality of life of the
City and accordingly promotes a public purpose.
Section 2. That the terms and conditions of the Grant Agreement, attached hereto as
Exhibit "A" and made part hereof for all purposes, having been reviewed by the City Council of
the City of Sanger, Texas, and found to be acceptable and in the best interests of the City of Sanger
and its citizens, said Agreement is hereby in all things approved.
Section 3. That the Sanger Texas Development Corporation is authorized to enter into
appropriate agreement with the City of Sanger for the construction of a picnic pavilion at the John
Porter Park, to provide such or appropriate grants or funds available at the discretion of the Board
of Directors of the Development Corporation.
Section 4. That the Mayor is hereby authorized to execute the attached Agreement and all
other necessary documents in connection therewith on behalf of the City of Sanger, according to
the terms and conditions set forth in the Agreement and this Resolution.
Section 5. This Resolution shall take effect after its second reading and immediately from
and after its passage by the City Council, and it is, accordingly, so resolved.
Date of 15t reading
Date of 2" a reading
DULY RESOLVED AND ADOPTED by the City Council of the City of Sanger, Texas
this day of 2018.
Thomas E. Muir, Mayor
ATTEST:
Cheryl Price, City Secretary
APPROVED AS TO FORM:
Robert L. Dillard III, City Attorney
BANGER
* T E x A S COUNCIL AGENDA ITEM
AGENDA TYPE ® Regular ❑ Special ❑ Consent Reviewed by
❑ Yes
® Not Applicable
❑ Workshop ❑ Executive ❑ Public Hearing Finance
Reviewed by Legal
® Yes
❑ Not Applicable
COUNCIL MEETING DATE: SUBMITTED BY:
JAMES BERMAN,
JUNE 18, 2018 DIRECTOR PARKS AND RECREATION
City Manager Reviewed/Approval Initials A-r- Date ONO
ACTION REQUESTED: ❑ORDINANCE ® RESOLUTION ® APPROVAL
❑ CHANGE ORDER ® AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT
❑ CONSENSUS ❑ REAPPOINTMENTS ❑ OTHER EXPLAIN:
AGENDA CAPTION
Consider, Discuss and Act on Resolution Resolution # 06-06-18 — Approving a Project and Grant
Agreement Between the Sanger Texas Development Corporation and the City of Sanger Providing
for the Construction of a 3,200 Square Feet Picnic Pavilion at the John Porter Park at a Cost Not to
Exceed $85,000. Authorizing Execution of the Agreement and all Necessary Documents by the
Mayor; and, Providing for an Effective Date.
FINANCIAL SUMMARY
[—]N/A ❑GRANT FUNDS ❑OPERATING EXPENSE []REVENUE ❑CIP []BUDGETED ❑NON -BUDGETED
PRIOR
CURRENT
FUTURE
FISCAL YEAR:
YEAR
YEAR
YEARS
TOTALS
Proposed Expenditure Amount
$85,000.
$85,000.
Encumbered Amount
BALANCE
FUND(S) TO BE USED: General ❑$ Utility
❑ $ Special ® 85 000.
BACKGROUND/SUMMARY OF ITEM
This potential project was brought to the Sanger Texas Development Corporation by Tatum
Whitewood as a community service project. Seeing the community need for a large event outdoor
pavilion the Sanger Texas Development Corporation chose to fund this project as a Parks and
Recreation improvement project. After a public hearing held @ 6:00 pm. on April 17, 2018 with no
opposition to the project the board voted unanimously to fund this project and move the project
forward for council approval.
STAFF OPTIONS & RECOMMENDATION
Staff recommends approval.
List of Supporting Documents/Exhibits Attached:
Prior Action/Review by Council, Boards,
• Resolution
• Funding Agreement
• Site Plan
Commissions or Other Agencies:
Sanger Texas Development Corporation approved at their
April 17, 2018 meeting.
First Reading of Resolution by Council on June 4, 2018
Second Reading of Resolution Council on June 18,2018
RESOLUTION # 06-06-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANGER,
TEXAS, APPROVING A PROJECT AND GRANT AGREEMENT
BETWEEN THE SANGER TEXAS DEVELOPMENT CORPORATION
AND THE CITY OF SANGER PROVIDING FOR THE CONSTRUCTION
OF A 3,200 SQUARE FEET PICNIC PAVILION AT THE JOHN PORTER
PARK AT A COST NOT TO EXCEED $85,000; AUTHORIZING
EXECUTION OF THIS AGREEMENT AND ALL NECESSARY
DOCUMENTS BY THE MAYOR; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the Sanger Texas Development Corporation desires to enter into an
agreement with the City of Sanger to construct a picnic pavilion, 3,200 square feet in area
("Project") at a cost not to exceed $85,000;
WHEREAS, this Project will provide additional covered space in the John Porter Park,
which would allow for large scale events under a covered facility;
WHEREAS, Section 505.158 (b) of the Texas Local Government Code requires that such
Project should not be undertaken until the City Council has given a resolution approving such
Project at least two separate readings; and
WHEREAS, the City Council desires to give the resolution approving the Project such
readings and approval so that the Project may proceed to enhance and expand the quality of life
opportunities within the City of Sanger, Texas in accordance with the terms of the Grant
Agreement which is attached hereto as Exhibit "A";
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF COUNCIL OF
SANGER, TEXAS THAT:
Section 1. That the City Council has reviewed the Project described herein and has
determined that the Project will promote community activity and enhance the quality of life of the
City and accordingly promotes a public purpose.
Section 2. That the terms and conditions of the Grant Agreement, attached hereto as
Exhibit "A" and made part hereof for all purposes, having been reviewed by the City Council of
the City of Sanger, Texas, and found to be acceptable and in the best interests of the City of Sanger
and its citizens, said Agreement is hereby in all things approved.
Section 3. That the Sanger Texas Development Corporation is authorized to enter into
appropriate agreement with the City of Sanger for the construction of a picnic pavilion at the John
Porter Park, to provide such or appropriate grants or funds available at the discretion of the Board
of Directors of the Development Corporation.
Section 4. That the Mayor is hereby authorized to execute the attached Agreement and all
other necessary documents in connection therewith on behalf of the City of Sanger, according to
the terms and conditions set forth in the Agreement and this Resolution.
Section 5. This Resolution shall take effect after its second reading and immediately from
and after its passage by the City Council, and it is, accordingly, so resolved.
Date of 1" reading
Date of 2nd reading
DULY RESOLVED AND ADOPTED by the City Council of the City of Sanger, Texas
this day of 2018.
APPROVED:
Thomas E. Muir, Mayor
ATTEST:
Cheryl Price, City Secretary
APPROVED AS TO FORM:
Robert L. Dillard I1I, City Attorney
EXHIBIT A
GRANT AGREEMENT
Grantee: CITY OF SANGER, TEXAS
502 Elm Street
P.O. Box 1729
Sanger, Texas 76266
Grantor: SANGER TEXAS DEVELOPMENT CORPORATION
201 Bolivar Street
Sanger, Texas 76266
This GRANT AGREEMENT between the CITY OFSANGER, TEXAS, a Texas home -rule
municipality, its successors and assigns (hereinafter referred to as the "Grantee"), and the SANGER
TEXASDEVELOPMRNT CORPORATION, a Texas non-profit corporation (hereinafter referred to
as the "Grantor"), is made and executed on the following recitals, terms and conditions.
WHEREAS, Grantee is requesting Eighty -Five Thousand and no/100 Dollars ($85,000.00)
from the Grantor, for design, development and construction of a Picnic Pavilion at John Porter Park
(the "Project"); and
WHEREAS, the Board of Directors of Grantor considered Grantee's request at its meeting
held on April 17, 2018, at which time the Board agreed to provide funding in the amount of Eighty -
Five Thousand and no/100 Dollars ($85,000.00) for the Project; and
WHEREAS, all grants and financial assistance provided by Grantor to Grantee pursuant to
this Agreement are referred to collectively herein as the "Grant"; and
WHEREAS, Grantee understands and agrees that: (a) in approving this Grant, Grantor is
relying upon Grantee's representations, warranties, and agreements, as set forth and provided for in
this Agreement; (b) the approval of this Grant by Grantor shall be subject to Grantor's sole judgment
and discretion; and (c) this Grant shall be and shall remain subject to the terms and conditions set
forth in this Agreement; and
WHEREAS, the Board of Directors of the Grantor has determined the financial assistance
provided to Grantee to fund the Project for the Grantee meets the definition of "project" as contained
in Section 505.152 of the Texas Local Government Code, as amended;
NOW, THEREFORE, for and in consideration of the agreements contained herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Grantor and the Grantee agree as follows:
SECTION 1. FINDINGS INCORPORATED.
The foregoing recitals are hereby incorporated into the body of this Agreement and shall be
considered part of the mutual covenants, consideration and promises that bind the parties.
SECTION 2. TERM.
This Agreement shall be effective as of June 18, 2018 and shall continue thereafter until all
obligations of Grantee to Grantor have been performed in full or on June 18, 2019, whichever is
later, unless terminated sooner under the provisions hereof.
SECTION 3. DEFINITIONS.
The following words shall have the following meanings when used in this Agreement.
(a) Act. The word "Act" means Chapters 501 to 505 of the Texas Local Government Code, as
amended.
(b) Agreement. The word "Agreement" means this Grant Agreement, together with all exhibits
and schedules attached to this Grant Agreement from time to time, if any.
(c) Grantee. The word "Grantee" means CITY OF SANGER, TEXAS, a Texas home -rule
municipality, its successors and assigns, and whose address for the purposes of this
Agreement is 502 Elm Street, Sanger, Texas 76266.
(d) Event of Default. The words "Event of Default" mean and include any of the Events of
Default set forth below in the section entitled "Events of Default."
(e) Grantor. The word "Grantor" means the SANGER TEXAS DEVELOPMRNT
CORPORATION, a Texas non-profit corporation, its successors and assigns, and whose
address for the purposes of this Agreement is 201 Bolivar Street Sanger, Texas 76266.
(f) Grant. The word "Grant" or "Grants" means the grant described in this Agreement and
described on any exhibit or schedule attached to this Agreement.
(g) Note. The word "Note" means the non -interest bearing Promissory Note of even date
herewith executed by and between the parties hereto in the principal amount of Eighty -Five
Thousand and no/100 Dollars ($85,000.00) due upon demand and payable on or before June
18, 2019.
(h) Qualified Expenditures. The words "Qualified Expenditures" mean the expenditures made
by the Grantee for the following purposes, which are consistent with Section 505.152 of the
Page 2 of 10
Grant Agreement
STDC — CITY OF SANGER, Texas
Act: design development services and construction of Picnic Pavilion at John Porter Park
funded by SANGER TEXAS DEVELOPMRNT CORPORATION;
SECTION 4. AFFIRMATIVE COVENANTS.
Grantee covenants and agrees with Grantor that, while this Agreement is in effect, Grantee
shall comply with the following terms and conditions:
(a) Financial Assistance. Upon execution and effective date of this Agreement, Grantee shall be
entitled to Eighty -Five Thousand Dollars and no/100 Dollars ($85,000.00) for Qualified
Expenditures. Grantee agrees to provide to Grantor receipts, invoices, or other
documentation which is in a form acceptable to the Grantor for said Qualified Expenditures.
Grantee covenants and agrees all expenditures by the Grantee shall be competitively bid,
and/or acquired in accordance with state law.
(b) Compliance Letters. Grantee shall provide the Grantor with copies of invoices, receipts or
other documentation which is in a form acceptable to the Grantor for the expenditures
authorized and required by Section 4(a) above. Grantee shall provide Grantor with
compliance letters upon malting the expenditures authorized by Section 4(a), such letters to
be attached to the submitted invoices, receipts, or other documentation required by this
subsection. In the compliance letter, Grantee shall represent and warrant that the expenditures
were made in compliance with this Agreement by and between Grantee and Grantor.
(c) Additional Assurances. Grantee agrees to matte, execute and deliver to Grantor such other
promissory notes, instruments, documents and other agreements as Grantor or its attorneys
may reasonably request to evidence the Note.
(d) Performance. Grantee agrees to perform and comply with all terms, conditions, and
provisions set forth in this Agreement.
SECTION 5. CESSATION OF ADVANCES.
If Grantor has made any commitment to make any Grant to Grantee under this Agreement,
Grantor shall have no obligation to advance or disburse Grant proceeds if. (i) Grantee becomes
insolvent, files a petition in bankruptcy or similar proceedings, or is adjudged bankrupt; or (ii) an
Event of Default occurs.
SECTION 6. GRANT FORGIVENESS.
Notwithstanding the provisions hereof and the obligations contained in the Note executed
incident hereto, any advance hereunder shall be forgiven and not be payable to Grantor upon
verification of Qualified Expenditures equaling the amount of the Grant advance. However, any
Grant advance, not previously forgiven under the foregoing, shall not be forgiven in an Event
of Default under Section 7 and Section 8 herein, and shall become immediately due and
Page 3 of 10
Grant Agreement
STDC — CITY OF SANGER, Texas
payable in accordance with this Agreement and the Note.
SECTION 7. EVENTS OF DEFAULT.
Each of the following shall constitute an Event of Default under this Agreement:
(a) Public Park Improvements. Failure of Grantee to continuously operate the public parks
improved through: design, development and construction of Picnic Pavilion at John Porter
Park funded by SANGER TEXAS DEVELOPMRNT CORPORATION through June 18,
2019.
(b) False Statements. Any warranty, representation, or statement made or furnished to Grantor
by or on behalf of Grantee under this Agreement that is false or misleading in any material
respect, either now or at the time made or furnished.
(c) Insolvency. Grantee's insolvency, appointment of receiver for any part of Grantee's
property, any assignment for the benefit of creditors of Grantee, any type of creditor workout
for Grantee, or the commencement of any proceeding under any bankruptcy or insolvency
laws by or against Grantee.
(d) Other Defaults. Failure of Grantee to comply with or to perform any other term, obligation,
covenant or condition contained in this Agreement.
SECTION 8. EFFECT OF AN EVENT OF DEFAULT.
If any Event of Default shall occur, all commitments of Grantor under this Agreement
immediately will terminate, (including any obligation to make Grant advances), and the remaining
outstanding balance of the Grant will become immediately due and payable, at the option of Grantor,
all without notice of any kind to Grantee, except for an Event of Default described in the
"Insolvency" subsection above, in which case such acceleration shall be automatic and not optional.
SECTION 9. INDEMNIFICATION.
To the extent allowed by law, Grantee shall indemnify, save, and hold harmless
Grantor, its directors, officers, agents, attorneys, and employees (collectively, the
"Indemnitees") from and against: (i) any and all claims, demands, actions or causes of action
that are asserted against any Indemnitee if the claim, demand, action or cause of action
directly or indirectly relates to tortious interference with contract or business interference, or
wrongful or negligent use of Grantor's grant advances by Grantee or its agents and employees;
(ii) any administrative or investigative proceeding by any governmental authority directly or
indirectly related, to a claim, demand, action or cause of action in which Grantor is a
disinterested party; (iii) any claim, demand, action or cause of action which directly or
indirectly contests or challenges the legal authority of Grantor or Grantee to enter into this
Agreement; and (iv) any and all liabilities, losses, costs, or expenses (including reasonable
Page 4 of 10
Grant Agreement
STDC — CITY OF SANGER, Texas
attorneys' fees and disbursements) that any Indemnitee suffers or incurs as a result of any of
the foregoing; provided, however, that Grantee shall have no obligation under this Section to
Grantor with respect to any of the foregoing arising out of the gross negligence or willful
misconduct of Grantor or the breach by Grantor of this Agreement. If any claim, demand,
action or cause of action is asserted against any Indemnitee, such Indemnitee shall promptly
notify Grantee, but the failure to so promptly notify Grantee shall not affect Grantee's
obligations under this Section unless such failure materially prejudices Grantee's right to
participate in the contest of such claim, demand, action or cause of action, as hereinafter
provided. If requested by Grantee in writing, as so long as no Default or Event of Default shall
have occurred and be continuing, such Indemnitee shall in good faith contest the validity,
applicability and amount of such claim, demand, action or cause of action and shall permit
Grantee to participate in such contest. Any Indemnitee that proposes to settle or compromise
any claim, demand, action, cause of action or proceeding for which Grantee may be liable for
payment of indemnity hereunder shall give Grantee written notice of the terms of such
proposed settlement or compromise reasonably in advance of settling or compromising such
claim or proceeding and shall obtain Grantee's concurrence thereto.
SECTION 10. GRANTEE'S REPRESENTATIONS.
By execution hereof, the signatory warrant and represent that they have the requisite authority
to execute this Agreement and that the representations made herein are true and accurate in all
respects.
SECTION 11. MISCELLANEOUS PROVISIONS.
The following miscellaneous provisions are a part of this Agreement:
(a) Amendments. This Agreement constitutes the entire understanding and agreement of the
parties as to the matters set forth in this Agreement. No alteration of or amendment to this
Agreement shall be effective unless given in writing and signed by the party or parties sought
to be charged or bound by the alteration or amendment.
(b) Applicable Law and Venue. This Agreement has been delivered to Grantor and accepted
by Grantor in the State of Texas. Grantee agrees to submit to the jurisdiction of the courts of
Denton County, State of Texas, and that venue is proper in said County. This Agreement
shall be governed by and construed in accordance with the laws of the State of Texas and
applicable Federal laws.
(c) Caption Headings. Caption headings in this Agreement are for convenience purposes only
and are not to be used to interpret or define the provisions of the Agreement.
(d) Notices. All notices required to be given under this Agreement shall be given in writing and
shall be effective when delivered or when deposited in the United States mail, first class,
postage prepaid, addressed to the party to whom the notice is to be given at the address
Page 5 of 10
Grant Agreement
STDC — CITY OF SANGER, Texas
shown on Page 1 of this Agreement. Any party may change its address for notices under this
Agreement by giving formal written notice to the other parties, specifying that the purpose of
the notice is to change the party's address. For notice purposes, Grantee agrees to keep
Grantor informed at all times of Grantee's current address.
(e) Severability. If a court of competent jurisdiction finds any provision of this Agreement to be
invalid or unenforceable as to any person or circumstance, such finding shall not render that
provision invalid or unenforceable as to any other persons or circumstances. If feasible, any
such offending provision shall be deemed to be modified to be within the limits of
enforceability or validity; however, if the offending provision cannot be so modified, it shall
be stricken and all other provisions of this Agreement in all other respects shall remain valid
and enforceable.
(f) Survival. All warranties, representations, and covenants made by Grantee in this Agreement
or in any certificate or other instrument delivered by Grantee to Grantor under this
Agreement shall be considered to have been relied upon by Grantor and will survive the
making of this Grant.
(g) Undocumented Workers. The Grantee certifies that Grantee does not and will not
knowingly employ an undocumented worker in accordance with Chapter 2264 of the Texas
Government Code, as amended. If during the Term of this Agreement, Grantee is convicted
of a violation under 8 U.S.C. § 1324a(f), Grantee shall repay the amount of the public
subsidy provided under this Agreement plus interest, at the rate of eight percent (8%), not
later than the 120t" day after the date the Grantor notifies Grantee of the violation.
[The Remainder of this Page Intentionally Left Blank]
Page 6 of 10
Grant Agreement
STDC — CITY OF SANGER, Texas
GRANTEE ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
BUSINESS GRANT AGREEMENT, AND GRANTEE AGREES TO ITS TERMS. THIS
AGREEMENT IS EFFECTIVE AS OF June 18, 2018.
GRANTEE:
CITY OF SANGER, TEXAS,
a Texas home -rule municipality,
By:
Thomas E. Muir
Mayor
Date Signed:
GRANTOR:
SANGER TEXAS
DEVELOPMENT CORPORATION,
a Texas non-profit corporation,
By:
John Payne
Chairman
Date Signed:
Page 7 of 10
Grant Agreement
STDC — CITY OF SANGER, Texas
PROMISSORYNOTE
$85,000.00 June 18, 2018
("Effective Date")
The CITY OF SANGER, TEXAS, a Texas home -rule municipality,
(including its successors, "Maker"), For Value Received, promises and agrees to pay unto the order
of SANGER TEXAS DEVELOPMRNT CORPORATION, a Texas non-profit corporation
("Payee"), at its corporate offices located at201 Bolivar Street, Sanger, Texas 76266, in lawful
money of the United States of America, the principal sum of Eighty Five Thousand Dollars and
no/100 Dollars ($85,000.00), or so much as shall be advanced, said sums to accrue no interest.
TERMS OF PAYMENT: The principal of this Note is due on demand, but in any event, on
or before June 18, 2019. Notwithstanding the foregoing, advances hereunder shall be made in
accordance with the terms and provisions of that certain Grant Agreement executed as of even date
herewith between Maker and Payee ("Grant Agreement"), and such advances shall be forgiven
according to said Grant Agreement after such advance if Maker is not then in default under the Grant
Agreement. As such, Payee shall make no demand on principal under this Note except for upon
occurrence of an Event of Default as that term is defined in the Grant Agreement.
ALL PAST due principal shall bear interest until paid at a rate not to exceed prime plus 4%.
THIS GRANT is a line of credit but is not revolving. As already stated, advances made
hereunder are also governed by the Grant Agreement of even date herewith.
IF DEFAULT is made in the payment of any interest or principal hereof, as and when the
same is or becomes due, or if an Event of Default occurs under any instrument securing the payment
hereof or executed in connection herewith, including the Grant Agreement, the owner and holder of
this Note may declare all sums owing hereon due and payable within thirty (30) days of the date of
notice. If default is made in the payment of this Note at maturity (regardless of how its maturity may
be brought about), and the same is placed in the hands of an attorney for collection, or suit is filed
hereon, or proceedings are had in bankruptcy, probate, receivership or other judicial proceedings for
the establishment or collection of any amount called for hereunder, or any amount payable or to be
payable hereunder is collected through any such proceedings, Maker agrees and is also to pay to the
owner and holder of this Note a reasonable amount as attorneys' or collection fees.
Except as provided herein and in the Grant Agreement, upon an Event of Default (as that
term is defined in the Grant Agreement) only, MAKER, co -makers, signers, permitted assigns,
sureties, endorsers and guarantors, and each of them, expressly waive demand and presentment for
payment, notice of nonpayment, protest, notice of protest, notice of dishonor, notice of intent to
Page 8 of 10
Grant Agreement
STDC — CITY OF SANGER, Texas
accelerate the maturity hereof, notice of the acceleration of the maturity hereof, bringing of suit and
diligence in taking any action to collect amounts called for hereunder and in the handling of
securities at any time existing in connection herewith; and are and shall be jointly, severally, directly
and primarily liable for the payment of all sums owing and to be owing hereon, regardless of and
without any notice, diligence, act or omission as or with respect to the collection of any amount
called for hereunder or in connection with any right, lien, interest or property at any and all times had
or existing as security for any amount called for hereunder.
IT IS the intention of Maker and Payee to conform strictly to applicable usury laws.
Accordingly, if the transactions contemplated hereby would be usurious under applicable law
(including the laws of the State of Texas and the laws of the United States of America), then, in that
event, notwithstanding anything to the contrary herein or in any agreement entered into in connection
with or as security for this Note, it is agreed as follows: (i) the aggregate of all consideration which
constitutes interest under applicable law that is taken, reserved, contracted for, charged or received
under this Note or under any of the other aforesaid agreements or otherwise in connection with this
Note shall under no circumstances exceed the maximum amount of interest allowed by applicable
law, and any excess shall be canceled automatically and, if theretofore paid, shall be credited on the
Note by the holder hereof (or, to the extent that this Note shall have been or would thereby be paid in
full, refunded to the Maker); and (ii) in the event that maturity of this Note is accelerated by reason
of an election by the holder hereof resulting from any Event of Default, or in the event of any
required or permitted prepayment, then such consideration that constitutes interest may never include
more than the maximum amount allowed by applicable law, and excess interest, if any, provided for
in this Note or otherwise shall be canceled automatically as of the date of such acceleration or
prepayment and, if theretofore paid, shall be credited on this Note (or, to the extent that this Note
shall have been or would thereby be paid in full, refunded to the Maker).
THIS NOTE has been executed and delivered in and shall be construed in accordance with
and governed by the laws of the State of Texas and of the United States of America, except that
V.T.C.A. Finance Code, Chapter 346, as amended (which regulates certain revolving credit grant
accounts and revolving tri-party accounts) shall not apply hereto. Payee's address for notice is 201
Bolivar Street, Sanger, Texas 76266.
[Signature on next page]
Page 9 of 10
Grant Agreement
STDC — CITY OF SANGER, Texas
In witness whereof, Maker has executed this Note to be effective as of the Effective Date.
u. '
CITY OF SANGER, TEXAS
a Texas home -rule municipality,
Thomas E. Muir
Mayor
Date Signed:
Page 10 of 10
Grant Agreement
STDC — CITY OF SANGER, Texas
BANGER
*TEXAS
COUNCIL AGENDA ITEM
AGENDA TYPE ® Regular ❑ Special ❑ Consent Reviewed by
❑ Yes
® Not Applicable
❑ Workshop ❑ Executive ❑ Public Finance
Hearing Reviewed by Legal
®Yes
El Not Applicable
COUNCIL MEETING DATE: SUBMITTED BY:
June 18, 2018 Alina Ciocan, City Manager
City Manager Reviewed/Approval Initials A-r__ Date W1014
ACTION REQUESTED: []ORDINANCE ® RESOLUTION #06-09-18 M APPROVAL
❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT
❑ CONSENSUS ❑ REAPPOINTMENTS
AGENDA CAPTION
Consider, Discuss and Act on Resolution # 06-09-18 — Suspending the Effective Date for Ninety
Days in Connection with the Rate Increase Filing Made on About On June 1, 2018 by Atmos
Energy for its Mid -Tex Division; Finding That the Meeting Complies With the Open Meetings Act;
Making Other Findings and Provisions Related to the Subject; and Declaring an Effective Date.
FINANCIAL SUMMARY
®N/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE [:]CI P ❑BUDGETED ❑NON -BUDGETED
PRIOR
CURRENT
FUTURE
FISCAL YEAR:
YEAR
YEAR
YEARS
TOTALS
Proposed Expenditure Amount
Encumbered Amount
BALANCE
FUND(S) TO BE USED: General ❑$ Utility ❑ $ Special ❑
BACKGROUND/SUMMARY OF ITEM
See attached agenda information sheet.
STAFF OPTIONS & RECOMMENDATION
Staff is recommending approval.
List of Supporting Documents/Exhibits Attached:
Prior Action/Review by Council, Boards, Commissions or Other
• Agenda Information Sheet
Agencies:
• Atmos Energy Corporation's Statement of
N/A
Intent
0 Resolution #06-09-18
AGENDA INFORMATION SHEET
ITEM NO.
SUSPENSION OF ATMOS ENERGY'S PROPOSED EFFECTIVE DATE
FOR ITS PROPOSED INCREASE IN RATES
BACKGROUND
On or about June 1, 2018, Atmos Energy Corporation ("Atmos" or "Company") filed a
Statement of Intent with members of the coalition of cities known as the Atmos Texas
Municipalities ("ATM) comprised of about 50 cities, of which the City is a member, to
increase rates by approximately $4.5 million, which equates to an increase of about 8% in
annual non -gas -cost revenue in the ATM cities. On a system -wide basis, Atmos's
proposed increase would be the equivalent of about $46.0 million; this equates to an
increase in annual revenue of about 7.3%.
Atmos proposes an effective date of July 6, 2018 for its change in rates. As is explained
below, the proposed resolution related to Atmos's application to increase rates, if
adopted, suspends Atmos's proposed effective date for the statutory time period of 90
days, to October 4, 2018.
BILL IMPACT:
Atmos proposes to increase base rates for residential customers and to decrease base
rates for commercial customers. The effect on a customer's bill under Atmos's
proposed rates is as follows:
Class of Customer(excluding
Change in Average Bill
cost of as
Residential — Rate R
11.15% increase
Commercial — Rate C
4.22% decrease
Industrial — Rate I
12.39% decrease
Transportation — Rate T
12.39% decrease
Class of Customer(including
Change in Average Bill
cost of as
Residential — Rate R
4.82% increase
Commercial — Rate C
1.35% decrease
Industrial — Rate I
2.14% decrease
Transportation — Rate T
2.33% decrease
1 of 4
Abnos Nliffex 2018 Statement of Intent
REVENUE IMPACT:
Assuming Atmos's proposed increase is approved, the effect on the percentage change in
revenue for each customer class is shown below:
Class of Customer(excluding
Change in Revenue
cost of as
Residential — Rate R
11.18% increase
Commercial — Rate C
5.17% decrease
Industrial — Rate I
9.20% decrease
Transportation — Rate T
9.20% decrease
CURRENT BASE RATES VERSUS PROPOSED BASE RATES:
Atmos proposes to increase the fixed customer charge for the Residential class, while
charges based on consumption would be reduced. For commercial customers, Atmos
proposes a decrease in the customer charge and the commodity charge. The table below
shows Atmos's current base rates and its proposed base rates:
Rate R - Residential
Current
Proposed
$ Change
% Change
Customer Charge per month
$18.35
$20.25
$1.90
10.35%
Consumption Charge(per CCF)
$ 0.13734
$0.15701
$0.01967
14.32%
Rate C - Commercial
Customer Charge per month
$41.95
$41.85
<$O.10>
<0.24%
Consumption Charge(per CCF
$0.08746
$0.07729
<$0.01017>
<11.63%>
Rate I & T — Industrial &
Trans ortation
Customer Charge per month
$752.00
$752.00
$0.00
0.0%
Consumption Charge(per MMBTU :
First 1,500
$0.3172
$0.2390
<$0.07820>
<24.65%>
Next 3,500
$0.2322
$0.1901
<$0.04210>
<18.13%>
Over 5,000
$0.0498
$0.0498
$0.00000
0.0%
Because of the material increase to the Residential class and decreases to the commercial
and industrial and transportation classes, the City should evaluate Atmos's proposed
allocation of costs to the customer classes.
Atmos's application represents its first general rate case since 2012 (GUD No. 10170).
Prior to this filing, Atmos sought annual increases in rates pursuant to the Rate Review
Mechanism ("RRM"). However, the RRM tariff has since expired, thus necessitating
2 of 4
Atmos MidTex 2018 Statement of Intent
Atmos's application. Note that Atmos is seeking an increase in rates in those cities that
continued the RRM tariff.
ACTION REQUIRED BY July 6, 2018
The City must take action on Atmos's Statement of Intent before July 6, 2018.
Absent such action, Atmos's rates are deemed approved by operation of law.
ATMOS TEXAS MUNICIPALITIES
The Atmos Texas Municipalities ("ATM") was organized by a number of municipalities,
served by Atmos. Alfred R. Herrera with the law firm of Herrera Law & Associates,
PLLC, has previously represented the City as part of ATM in rate cases involving Atmos.
CITY JURISDICTION TO SET ATMOS'S RATES
Unless a city ceded its original jurisdiction to the Railroad Commission of Texas, the Gas
Utility Regulatory Act § 103.001 grants a city exclusive original jurisdiction over a gas
utility's rates, services, and operations within the city limits. But even if a city has ceded
its jurisdiction, to the Railroad Commission, the Gas Utility Regulatory Act § 103.023,
grants a city the statutory right to participate in rate proceedings before the Railroad
Commission.
RATE CASE EXPENSES
Cities by statute are entitled to recover their reasonable rate case expenses from the
utility. See Gas Utility Regulatory Act § 103.022. Legal counsel and consultants
approved by ATM will submit monthly invoices to the coalition -designated city that will
be forwarded to Atmos for reimbursement; the City of Longview has served in that
capacity for several years. No individual city's budget is negatively affected.
SUSPENSION
Atmos's rate -filing package is voluminous containing thousands of pages of data. In
order to have time to review the rate -filing package, the Council is requested to suspend
Atmos's proposed effective date for ninety (90) days as provided by GURA. It is a
virtual impossibility for the City to set just and reasonable rates without suspending the
rate request for ninety days; suspension of Atmos's proposed effective date will permit its
special regulatory counsel and experts an opportunity to perform a better review of
Atmos's application. Further, should Atmos's notice prove to be deficient, then the
statutory period would be extended; also by agreement between the City and Atmos, the
statutory suspension period may be extended.
3 of 4
Atmos MidTex 2018 Statement of Intent
RECOMMENDATION
It is recommended that the City continue its participation in the Atmos Texas
Municipalities and retain the law firm of Herrera Law & Associates, PLLC to represent
the City's interest in matters related to Atmos's rate case and to advise the City with
regard to Atmos's application, and that, if Atmos either submits its application to the
Railroad Commission of Texas, or appeals the City's final decision to the Railroad
Commission, the City intervene in the proceeding before the Railroad Commission of
Texas, should such proceedings develop, and court appeals, if any.
The recommendation is also to suspend Atmos's proposed effective date of July 6, 3018,
for its proposed increase in rates as set forth in Atmos's Statement of Intent for 90 days.
Assuming Atmos's notice meets the statutory criteria for sound notice, the suspension
period runs until October 4, 2018.
The City must take action no later than July 6, 2018. If the City does not take action
by July 6, 2018, Atmos's proposed rates will be deemed approved by operation of
law, subject to the City's right to hold a hearing to address Atmos's rate application.
4of4
Atmos MidTex 2018 Statement of Intent
"AM1140S
energy
Chris Felan
Vice President
June 1, 2018 Rates & Regulatory Affairs
TO THE HONORABLE MAYOR AND CITY COUNCIL:
Re: Atmos Energy Corporation's Statement of Intent to Increase Gas Utility Rates within All
Incorporated Areas Served by the Mid -Tex Division in the Atmos Texas Municipalities
("ATM") Coalition
Dear Mayor and City Council Members:
Enclosed for filing in the official City records is Atmos Energy Corporation's Statement of Intent
to Increase Gas Utility Rates within All Incorporated Areas Served by the Mid -Tex Division
Atmos Texas Municipalities ("ATM") Coalition. This filing is being made pursuant to the
provision of Texas Utilities Code § 104.102 and is intended to invoke the original jurisdiction of
the City as provided in Texas Utilities Code § 103.003. The proposed effective date of these rate
changes is July 6, 2018.
Atmos Energy Corporation, Mid -Tex Division ("Atmos Energy" or "the Company") is filing to
change the residential, commercial, industrial, and transportation rates applicable to service
within the municipal boundaries of your City. No service charges are proposed to be changed.
On a Mid -Tex system wide basis, Atmos Energy proposes to increase its annual revenues by
approximately $46.0 million or 3.08%, including gas costs, or 7.37% excluding gas costs. This
is a major rate change as defined by the provisions of the Texas Utilities Code. The Company
proposes to revise its residential, commercial, industrial and transportation rate schedules (Rates
R, C, I and T), as well as Rider WNA.
If you have questions, please feel free to contact me.
Sincerely,
Chris Felan
Attachments:
Atmos Energy Corporation
5420 LBJ Freeway, Suite 1862
Dallas, TX 75240
P 214-206-2568 F 214-206-2126 Christopher.Felan@atmosenergy.com
ATMOS ENERGY CORPORATION'S STATEMENT OF INTENT TO INCREASE GAS
UTILITY RATES WITHIN ALL INCORPORATED AREAS SERVED BY THE MID-
TEX DIVISION IN THE ATMOS TEXAS MUNICIPALITIES ("ATM") COALITION
To All Cities Affected By Atmos Energy Corporation, Mid -Tex Division's Rate Filing:
Atmos Energy Corporation ("Atmos Energy" or the "Company"), a "gas utility" under
TEx. UTIL. CODE § 101.003(7), respectfully files this Statement of Intent to increase gas utility
rates within all incorporated areas served by the Company's Mid -Tex Division in the Atmos
Texas Municipalities ("ATM") Coalition. This Statement of Intent is filed pursuant to the
provisions of Subchapter C of Section 104 of the Texas Utilities Code. The municipalities
affected by this Statement of Intent are identified on Exhibit A of the Rate Filing Package,
which is attached hereto and incorporated herein by reference.' The Company requests that the
revised rate schedules, Exhibit B of the Rate Filing Package, become effective for bills rendered
on and after July 6, 2018, which is 35 days from the date of this filing. No action on the part of
the Cities is required to permit these proposed rates to become effective.
I. JURISDICTION
Atmos Energy is a gas utility under § 101.003(7) of the Texas Utilities Code, and
municipalities have exclusive original jurisdiction to set the rates requested for the residential,
commercial, industrial and transportation customers within the incorporated areas served by the
Company's Mid -Tex Division under § 103.001 of the Texas Utilities Code. Consistent with such
jurisdiction, the proposed rates are applicable to the Company's natural gas sales and
transportation service within the incorporated areas of the Cities identified on Exhibit A of the
Rate Filing Package.
1 Hereafter, the municipalities identified on Exhibit A of the Rate Filing Package are collectively referred to in this
Statement of Intent as "the Cities."
1
H. SUMMARY OF PROPOSED CHANGES AND EXPECTED REVENUE CHANGE
For the twelve (12) month period ending December 31, 2017, Atmos Energy's adjusted
gas sales and transportation revenues from the incorporated areas affected by this Statement of
Intent totaled approximately $119,541,601. The proposed rates will increase such annual
revenues by approximately $4,527,908. If approved by the Cities, the proposed rates would
increase Atmos Energy's aggregate revenues from the incorporated areas affected by this
Statement of Intent by 3.59%, including gas costs, or 8.02% percent, excluding gas cost. The
effect that the proposed increase in rates will have on Atmos Energy's aggregate revenues on a
city by city basis is shown on Exhibit C of the Rate Filing Package. Because the proposed
changes will increase the total aggregate revenues of the Company within the incorporated areas
by more than two and one half percent, the proposed rate increase constitutes a major change as
that term is defined by § 104.101 of the Texas Utility Code.
The rate schedules, attached hereto as Exhibit B of the Rate Filing Package and made a
part hereof, evidence the rate changes proposed by the Company. As reflected in Exhibit B, the
Company is also proposing Rate Schedules to revise its residential and commercial rate
schedules (Rates R and C), as wells as industrial and transportation rate schedules (Rates I & T)
and its Rider WNA.
This filing also demonstrates the reasonableness and necessity of the investment that has
been made in the Mid -Tex Division since December 31, 2016. As provided by law, the
Company seeks reimbursement of all Company and City rate case expenses. The exact amount
will not be known until the case is complete.
2
III. DETAILS OF PROPOSED CHANGES
A. Test Year
The Company's proposed cost of service for the Mid -Tex Division as set forth in this
Statement
of Intent
and Rate
Filing Package is based
on the twelve-month period ending
December
31, 2017,
updated
for known changes and
conditions that are measurable with
reasonable accuracy.
B. Class and Number of Customers Affected
This Statement of Intent affects customers inside the limits of approximately forty-six
(46) incorporated cities, as listed on Exhibit A of the Rate Filing Package that is attached hereto.
The following table shows the number of customers by class within the incorporated areas served
by the Mid -Tex Division that will be affected by the proposed changes:
Municipal Customer Classes Number of Customers
Residential 152,410
Commercial 10,803
Industrial Sales & Transportation 72
Exhibit D, attached, shows the amount of the proposed change to revenues from each class of
customers.
C. Proposed Rate Change
The proposed changes to rates are set out below:
RATE R — RESIDENTIAL SALES
Charge
Current
Proposed
Customer Charge
$18.35
$20.25
Consumption Charge Per Cef
$.13734
$.15701
3
RATE C — COMMERCIAL SALES
Charge
Current
Proposed
Customer Charge
$41.95
$41.95
Consumption Charge Per Cef
$.08746
$.07729
RATE I — INDUSTRIAL SALES AND RATE T - TRANSPORTATION
Charge
Current
Proposed
Meter Charge
$752.00
$752.00
First 0 MMBtu to 1,500 MMBtu
$.3172
$.2390
Next 3,500 MMBtu
$.2322
$.1901
All Additional MMBtu
$.0498
$.0498
To develop the proposed rates, the Company has utilized current test period information
and updated the Class Cost of Service Study from Gas Utilities Docket No. 10170, which was
the Company's last general rate case.
Exhibit E, attached, shows the effect of the proposed change to an average bill for each
class of customers. Excluding gas cost, residential customers will see an 11.15% increase in the
average monthly bill, commercial customers will see an 4.22% decrease in the average monthly
bill, industrial customers will see an 12.39% decrease in the average monthly bill, and Rate T-
Transportation customers will see an 12.39% decrease in the average monthly bill.
4
D. Other Proposed Tariff Changes
In addition to the proposed change in rates reflected in its residential, commercial,
industrial and transportation rate schedules (Rates R, C, I and T), the Company proposes to
revise \its Rider WNA as identified below:
(1) Rider WNA
The Company proposes to update the heat load and base load factors reflected in its Rider
WNA. The Company requests these changes in order to synchronize these factors with proposed
rates and the updated billing determinant calculations used to develop the proposed rates.
E. Rate Case Expenses
The Company requests authority, pursuant to § 104.051 of the Texas Utilities Code, to
recover any applicable rate case expenses through a surcharge on its rates.
IV. PUBLIC NOTICE
Atmos Energy will promptly undertake to notify the public of the proposed changes in its
gas rates. The public notice that Atmos Energy will provide is attached as Exhibit F to the Rate
Filing Package. Additional copies of the Company's proposal are available from the undersigned
Company representatives. Atmos Energy will submit proof of notice to the Cities promptly upon
..
completion thereof, along with a copy of the published notice.
V. COMPANY REPRESENTATIVES FOR NOTIFICATION
Chris Felan
Vice President, Rates and Regulatory
Affairs
5420 LBJ Freeway, Suite 1600
Dallas, Texas 75240
214.206.2568 (phone)
214.206.2131 (fax)
Ann M. Coffin
Coffin Renner LLP
1011 W. 31st Street
Austin, Texas 78705
512.879-0900 (phone)
512.879-0912 (fax)
5
VI. CONCLUSION
Atmos Energy requests that the proposed new rates it seeks to implement for the
incorporated areas of the Cities identified in Exhibit A become effective for bills rendered on
and after July 6, 2018 by operation of law or by ordinance granting it the authority to charge
such rates.
Atmos Energy appreciates your consideration of these requested rate changes. Please
contact me at 214.206.2568 if you have questions concerning this filing.
Respectfully submitted,
ATMOS ENERGY CORPORATION
By: t J!�� 4tA,
Chris Felan
Vice President, Rates and Regulatory Affairs
0
RESOLUTION #06-09-18
RESOLUTION BY THE CITY OF SANGER, TEXAS ("CITY")
SUSPENDING THE EFFECTIVE DATE FOR NINETY DAYS IN
CONNECTION WITH THE RATE INCREASE FILING MADE ON
ABOUT ON DUNE 1, 2018 BY ATMOS ENERGY FOR ITS
MIDTEX DIVISION; FINDING THAT THE MEETING
COMPLIES WITH THE OPEN MEETINGS ACT; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND DECLARING AN EFFECTIVE DATE
WHEREAS, Atmos Energy ("Atmos" or "Company") filed a Statement of Intent
with the City on or about June 1, 2018, to increase its annual revenue by approximately
$4.5 million in the cities known as Atmos Texas Municipalities ("ATM"), which equates
to an increase in annual revenue of approximately 8.0 percent, and is the equivalent of an
increase of about $46.0 million on a system -wide basis; and
WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory
Act ("GURA") and under Chapter 104, § 103.001 et seq. of GURA has exclusive original
jurisdiction over Atmos's rates, operations, and services within the municipality; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating Atmos's rate request and its changes in tariffs it is
prudent to coordinate the City's efforts with a coalition of similarly situated
municipalities; and
WHEREAS, the City, in matters regarding applications by Atmos to change
rates, has in the past joined with other local regulatory authorities to form an alliance of
cities known as Atmos Texas Municipalities ("ATM"), and hereby continues its
participation in ATM; and
WHEREAS, Atmos's rate request consists of a voluminous amount of
information including Atmos's rate -filing package, exhibits, schedules, and workpapers;
and
1 of 4
Atmos MidTex 2018 Statement of Intent
WHEREAS, Atmos's rate application is the Company's first general rate case
since about 2012, and follows annual increases approved under the now -expired tariff
known as the "Rate Review Mechanism" ("R.RM"); and
WHEREAS, Atmos proposed July 6, 2018, as the effective date for its requested
increase in rates; and
WHEREAS, it is not reasonably possible for the City to complete its review of
Atmos's filing by July 6, 2018; and
WHEREAS, the City will need an adequate amount of time to review and
evaluate Atmos's rate application to enable the City to adopt a final decision as a local
regulatory authority with regard to Atmos's requested rate increase.
WHEREAS, the City will require the assistance of specialized legal counsel and
rate experts to review the merits of Atmos's application to increase rates; and
WHEREAS, if Atmos submits a corresponding application with the Railroad
Commission of Texas or appeals the City's action to the Railroad Commission of Texas,
the decision of the Railroad Commission of Texas will have a direct impact on the City
and its citizens who are customers of Atmos, and in order for the City's participation to
be meaningful it is important that the City intervene in any such proceedings at the
Railroad Commission of Texas related to Atmos's application to increase rates.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SANGER, TEXAS THAT:
Section 1. The findings set out in the preamble are in all things approved and
incorporated herein as if fully set forth.
Section 2. Atmos's proposed effective date for its proposed increase in rates is
hereby SUSPENDED for ninety days beyond July 6, 2018.
m
Atmos MidTex 2018 Statement of Intent
Section 3. The statutory suspension period may be further extended if Atmos does
not provide timely and meaningful, and proper public notice of its request to increase
rates, if its rate -filing package is materially deficient, or by agreement.
Section 4. The City shall participate in a coalition of cities known as the Atmos
Texas Municipalities ("ATM"), and authorizes intervention in proceedings related to
Atmos's Statement of Intent before the Railroad Commission of Texas and related
proceedings in courts of law; and
Section 5. The City hereby orders Atmos to reimburse the City's rate case expenses
consistent with the Gas Utility Regulatory Act and that Atmos shall do so on a monthly
basis and within 30 days after submission of the City's invoices for the City's reasonable
costs associated with the City's activities related to this rate review or related to
proceedings involving Atmos before the City, the Railroad Commission of Texas, or any
court of law.
Section 6. Subject to the right to terminate employment at any time, the City retains
and authorizes the law firm of Herrera Law & Associates, PLLC to act as Special
Counsel with regard to rate proceedings involving Atmos before the City, the Railroad
Commission of Texas, or any court of law, and to retain such experts as may be
reasonably necessary for review of Atmos's rate application subject to approval by the
steering committee of the ATM.
Section 7. The City, in coordination with the Steering Committee, shall review the
invoices of the lawyers and rate experts for reasonableness before submitting the invoices
to Atmos for reimbursement.
Section 8. A copy of this resolution shall be sent to Mr. Alfred R. Herrera, Herrera
Law & Associates, PLLC, 816 Congress Ave., Suite 950, Austin, Texas 78701, and a
courtesy copy to Atmos's local representative.
3 of 4
Atmos MidTex 2018 Statement of Intent
Section 9. The meeting at which this resolution was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government
Code, Chapter 551.
Section 10. This resolution shall become effective from and after its passage.
PASSED AND APPROVED this 18th day of June, 2018.
ATTEST:
Cheryl Price, City Secretary
4 of 4
Thomas, E. Muir, Mayor
Atmos MidTex 2018 Statement oflntent
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1 -
Chris Felan
Vice President
Rates & Reoulatory Affairs
City Official
Re: Rider GCR - Rate Filing under Docket No. 10170
Enclosed is Atmos Energy Corp., Mid -Tex Division's Statement of Rider GCR applicable
for the June 2018 billing periods. This Statement details the gas cost component of the
residential, commercial, and industrial sales rates for customers within your city. This
filing is for informative purposes only and no action is required on your city's part.
Should you have any questions, please let me know.
Sincerely,
Attachment
Atmos Energy Corporation
5420 LBJ Freeway, Suite 1800
Dallas, TX 75240
P 214-206-2568 F 214-206-2126 Christopher.Felan@atmosenergy.com
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