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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. 0F..Sgi1i�'y slz% Al Cheryl Pric i tecretary City of Sand , Texas s ` Ile `ee �FX As ��qr rrrur��t� 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 N o o O C7LD O o 0 0H ti Q J O O O a O O O a Q c G M � N H O d' N tD 0 �A a. N m 11 N �o li cr m Lo Q ci cp1 N N m m N N N c-I N n m d' ri N H LD N i-1 H Ol QLfl Ln N Ih m N Vl ct ci ci H rl N N c-i rmi c} Ol c-I U W 'c!' N� N n n N to n � c-I c-I c-I N to dl 0 HY) O N H lD d' m h V V O Lfl N N N V z N OO a 00 m w ci N 11 m N N * S * t * t- * t t H z C7 O F a Z p * t N O o v v F* *_ O Ln ? Lo >> 0 0 L O* n. ** Z C7 O F a O p F a v * z p gZ y r J J In J 0YW 0Y UY z!n p UO (Z=O Q V pZ CUwW0 Q} Q} Jmn O U a U aQ O = oLJaOU j 0 0a w O O V0Yw U U N O NpWO Z Z wwW -W 0W O O ZDna CJ C7 w W W 0U Q 0Q J O O W w�7 F- * O O N N Z Z � -� O dF N D a D a w w w 1r 0 0 w D' 0 O O N 0 0 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 Z t- O U W o O Z W Z OZ 0- Q f— or[n9"0 LLI O j L o otf 1' U-LLNOU (DXU mUpp �LZ �Qtn W W z W � �W LuJ of U Q Q S pE C) W C0 Q d < m OD co � M N `o U LL N :3 O 0 U U N Q m m m o 0 0 CCCD) 0 o co r` Cc In N CO O O) OJ V U') Il- N Il' co 'ct (N O O O CD C) C)N "r C) M 64 N N N O O O O O co o •c s? p � m � O N O UCDU N U! 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