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05/05/2014-CC-Agenda Packet-Regularau�geh TEXAS AGENDA CITY COUNCIL MONDAY, MAY 59 2014 7:00 PM 502 ELM STREET 1. Call Meeting to Order, Invocation, Pledge of Allegiance. 2. Citizens 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). CONSENT AGENDA 3. a) Approval of Minutes: April 21, 2014 -City Council b) Disbursements 4. Consider any Items Removed From Consent Agenda. REGULAR AGENDA 5. Consider, Discuss and Possibly Approve Proclamation #OS-OS-14 -Motorcycle Safety and Awareness Month 6. Consider, Discuss and Possibly Approve Resolution #ROS-04-14 -Denying an Increase in Rates Requested by ATMOS Energy. 7. Consider, Discuss and Possibly Approve a Building Use Agreement at 511 N. Sth Street Between the Sanger Area Historical Society and the City of Sanger. 8. Consider, Discuss and Possibly Approve Awarding the Construction Contract for the Jones -Willow Sewer Line to Wildstone Construction, LLC in the Amount of $440,550, Approve Utilizing Waste Water Capital Improvement Funds to Fund the Difference Between the Total Cost and Grant Funds Available and Authorizing the City Manager to Approve Change Orders Within Statutory Limits. 9. INFORMATION ITEMS: a) Financial and Investment Report -March b) ATMOS Rider GCR - Rate Filing Under Docket No. 10170 10. Adjourn. I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on the bulletin board, at the City Hal�,,ofl"th'e'�Cj}�y of Sanger, Texas, a place convenient and readily accessible to the ge era blf, 4 t tirikts'�and said notice was posted on the following date and time: ,.'� 0�! j`, at 49; 00 .m. and shall on Tami Taber, City Sec: City of Sanger, Texas TExP+ MINUTES: CITY COUNCIL MEETING April 21, 2014 PRESENT: Mayor Thomas Muir, Councilman Billy Ezell, Councilman Scott Stephens, Councilman Gary Bilyeu and Councilman Allen Chick ABSENT: Councilman Russell Martin OTHERS PRESENT: City Manager Mike Brice, Tami Taber City Secretary and Joe Falls Call Meeting to Order, Invocation, Pledge of Allegiance. Mayor Muir called the meeting to order at 7:00 p.m. Mayor Muir led the Invocation followed by Councilman Bilyeu leading the Pledge of Allegiance. 2. Citizens 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). Joe Falls of 4489 McReynolds Road, wanted to make a tribute to former Councilman Rusty Patton. He said he was a good friend to him and to the City. He commented that while Rusty was on the Council, he was working for a more friendly Sanger (open and accessible). CONSENT AGENDA 3. a) Approval of Minutes: April 7, 2014 -Work Session April 7, 2014 - Council Meeting b) Disbursements c) Approve Proclamation #04-2144 - National Safe Digging Month d) Approve Renewal of Tower Lease With Speed of Light Broadband for a Five Year Term Commencing on May 4, 2014 Councilman Ezell made a motion to approve. Seconded by Councilman Stephens. Motion carried unanimously. 4. Consider any Items Removed From Consent Agenda None. REGULAR AGENDA 5. Consider, Discuss and Possibly Approve Resolution #ROS-03-14 -Regarding Declaration of Official Intent Pursuant to Section 1.150-2 of the Treasury Regulations in the Amount of $6,000,000 for the Sewer System Refurbish and Rehabilitation. Councilman Stephens made a motion to approve. Seconded by Councilman Bilyeu. Motion carried unanimously. 6. Consider, Discuss and Possibly Approve Ordinance 404-0644 -Establishing Rules and Regulations Regarding Sanitation and Pollution Control of the Areas in Proximity to the City's Public Water Supply Wells. City Manager stated that this is a requirement by TCEQ. Councilman Bilyeu made a motion to approve. Seconded by Councilman Ezell. Motion carried unanimously. 7. Consider, Discuss and Possibly Approve Awarding the Construction Contract for the Jones -Willow Sewer Line to Dickerson Construction in the Amount of $429,540, Approve Utilizing Waste Water Capital Improvement Funds to Fund the Difference Between the Total Cost and Grant Funds Available and Authorizing the City Manager to Approve Change Orders Within Statutory Limits. City Manager advised that the engineer contacted him today and stated that Dickerson Construction is now unable to do the job due to winning another bid prior to this one. City Manager will be contacting the City attorney regarding legal ramifications. This item will be tabled until the next meeting. Councilman Bilyeu made a motion to table this motion. Seconded by Councilman Stephens. Motion carried unanimously. 8. INFORMATION ITEMS: a) All American Dogs Report - March 9. Adjourn. Mayor Muir adjourned the meeting at 7:22 p.m. 4/23/2014 3:17 PM A / P CHECK REGISTER PAGE: 1 PACKET: 06532 4.23.14 VENDOR SET: 99 BANK POOL POOLED CASH ACCOUNT CHECK CHECK CHECK CHECK VENDOR NAME / I.D. PESO TYPE DATE DISCOUNT AMOUNT N04 AMOUNT *VOID* VOID CHECK V 4/23/2014 056791 **VOID** 07860 ACT PIPE SUPPLY, INC I-902828 PARTS FOR WATER LINE R 4/23/2014 435.47CR 056778 435.47 18100 AMERICAN MUNICIPAL SERVICES I-19228 COLLECTIONS ON WARRANTS R 4/23/2014 797.70CR 056779 797.70 00240 AMERICAN PUBLIC P0WER I-249314 DUES R 4/23/2014 3,324.05CR 056780 3,324.05 08610 ANIMAL CARE EQUIP 6 SVS, CORP. I-25620 LARGE CADAVER BAGS 30X50 R 4/23/2014 116.14CR 056781 116.14 22620 ARMIARK UNIFORM SERVICE I-792375846 ONIFORNS FOR 2013-2014 R 4/23/2014 359.59CR 056782 I-79275846 UNIFORMS FOR 2013-2014 R 4/23/2014 567.55CR 056782 927.14 03170 ASCO I-C74535 HYDROLIC CYLINDER KIT R 4/23/2014 70.63CR 056783 I-C83O96 REMOVE FACTORED TURBO R 4/23/2014 11500.00CR 056783 1,570.63 AT&T MOBILIT'Y 1-2870195969432814 CELL PHONES R 4/23/2014 753.52CR 056704 753.52 25b10 AUSTIN LANE TECHNOLOGIES, INC I-20140409 YEARLY PWINT£NANCE R 4/23/2014 3,545.00CR 056785 1-20140409A YEARLY MAINTENANCE R 4/23/2014 183.75CR 056785 3,728.75 00420 BOUND TREE MEDICAL, LLC I-81380120 EMS SUPPLIES R 4/23, 2014 - - 1,298.56CR 056706 1-81380221 EMS SUPPLIES R 4/23/2014 25.85CR 056706 1-81384220 EMS SUPPLIES R 4/23/2014 139.11CR 056786 1,464.12 00440 BRAZOS ELECTRIC I-29771-RI-1 BRAZOS ELECTRIC R 4/23/2014 13,269.92CR 056787 13,269.92 26350 C a G ELECTRIC, INC 1-25119 UTILTY RD WELL R 4/23/2014 350.000R 056788 350.00 11010 C 6 0 EQUIPMENT CO. I-42839 HYDRO CYLINDER FOR TRENCH R 4/23/2014 706.000R 056789 706,00 i 4/23/2014 3:0 214 A / P CHECK REGISTER PAGE: 2 PACKET: 06532 4.23.14 VENDOR SET: 99 BANK POOL, POOLED CASH ACCOUNT CHECK CHECK CHECK CHECK VENDOR NAME / I.D. DESC TYPE DATE DISCOUNT AMOUNT NO# AMOUNT 22300 CARD SERVICE CENTER C-03252014 CANCEL PORTION OF CLASS R 4/23/2014 185,00 056190 C-171197477528-1 HOTEL CANCEL R 4/23/2014 124,20 056790 I-004473 IKEA - SHELVING R 4/23/2014 49.99CR 056790 I-0312014 ETHERNET CORDS R 4/23/2014 456.98CR 056790 I-03192014 WEBSITE HOSTING R 4/23/2014 182.�8CR 056790 I-03202014 TX LIB ASSOC CONE REG R 4/23/2014 100.000R 056790 I-04212014 ADA HAND DRYERS R 4/23/2014 642.000R 056990 I-100210018 WEBINAR WITH IOC R 4/23/2014 50,OOCR 056790 I-10051845 RADIO SHACK - LIBRARY R 4/23/2014 11,94CR 056790 I-15559 PANEL FOR CITY HALL R 4/23/2014 56.000R 056790 I-1556 GARBAGE DISPOSAL COM. CEN R 4/23/2014 84.96CR 056790 I-169"4 INSIDE DOOR PANEL R 4/23/2014 40.000R 056790 I-1718974M28 BRICE-ASSTIN-HOTEL R 4/23/2014 124.20CR 056790 I-2014 ANNUAL CONE TEN. MEMBERSHIP R 4/23/2014 285.000R 056790 I-2548 PARLIAMENTARY PROCEDURE R 4/23/2014 149.000R 056790 I-3840�599085196 PROGRAM SUPPLIES R 4/23/2014 09.98CR 056790 I-7524 SPRAY PARK LOUVER R 4/23/2014 104.92CR 056790 I-8133 RISC SUPPLIES R 4/23/2014 30.35CR 056�90 I-912I CLASSES ILIFF 6 OOUTHITT R 4/23/2014 '150.00CR 056790 I-A493GPB WEBINAR W ASFPM R 4/23/2014 45.000R 056790 I-FT418XV BRICE-AUST'IN-HOTEL R 4/23/2014 99.82CR 056790 3,123,�2 00520 CASCO INDUSTERIES, INC. I-31914 WILDLAND BOOTS R 4/23/2014 5,394.00CR 056792 5,394.00 02490 CENTURYLINK I-05022014 PHONES R 4/23 2014 1,486.88CR 056793 1,486.88 00590 CITY OF DENTON I-04212014 TCEQ REQUIRMENT - SAMPLES R 4/23, 2014 322.40CR 056794 322.40 00050 CONLEY SAND 5 GRAVEL I-10043 LOAD OF SAND FOR WATER R 4/23/2014 375.000R 056795 375.00 08880 COOPER'S COPIES I-114246 DECALS/LOGOS R 4/23/2014 151.80CR 056396 151.80 11570 CULLIGAN I-5/1-5/31 WATER BOTTLE SERVICE R 4/23/2014 4I.91CR 056792 4�.91 21110 DANIEL R SALAS SR 1-133 SHEETROCK, INSULATION R 4/23/2014 121180.00CR 056I98 12,180.00 PAGE: 3 4/23/2014 3:17 PHA A / P CHECK REGISTER PACKET: 06532 4.23.14 VENDOR SET: 99 BANK POOL POOLED CASH ACCOUNT VENDOR NAME / I.D. DESC 25730 DATAPROSE, LLC I-3672 UTILITY HILL FLYERS 08460 DELL COMPUTERS, LLP I-XJDIPM186 COMPUTER-J HENDERSON 18190 DEPARTMENT OF INFORMATION RESOURCE I-14031031N 3/1/14-3/31/14 27250 DEVI FASTPITCH I-04112014 REFUND FOR PAYMENT 20980 EXPRESS SERVICES, INC. I-13876801-5 FOSTER, COREY - PARKS I-13915344-9 FOSTER, COREY - PARKS 13810 FIRE PROGRAISS I-7714 1 YR SERVICE SUPPORT 23010 FIVE STAR SUPPLY CO INC. I-47681 JANITORAL SUPPLIES I-47696 PAPER TOV]ELS, TRASH BAGS I-47769 PAPER TOVIELS, TRASH BAGS 18790 EDELMAN I-NP41038212 FUEL USAGE I-np40991918 FUEL USAGE 01070 GALLS INC. I-001779669 POLOS ADD PANTS I-001791429 SOLOS AND PANTS I-001793278 LEATHER BADGE CASE 25560 GARY DILL BACKHOE SERVICE I-1844 BORE AND CASE 08760 GT DISTRTBUTORS INC I-INVO489645 DOUPLE PWG POUCH 01170 HOLLINGSWORTH PEG CO.INC. 1-6571 IST RAPT CHURCH - COVER CHECK CHECK CHECK CHECK TYPE DATE DISCOUNT AMOUNT NO@ AMOUNT R 4/23/2014 2,226.73CR 056799 21226,73 R 4/23/2019 969.97CR 056800 969.97 R 4/23/2014 28.96CR 056801 28,96 R 9/23/2014 SBI.000R 056802 161.00 R 4/23/2014 584.40CR 056803 R 4/23/2014 650.16CR 056803 1,234.56 R 4/23/2014 1,425.000R 056804 1,425.00 R 4/23/2019 335.71CR 056805 R 4/23/2019 243.95CR 056805 R 4/23/2014 10.000R 056805 589.66 R 4/23/2014 31118.93CR 056806 R 4/23/2014 3,093.94CR 056806 6,212.87 R 4/23/2014 399.91CR 056807 R 4/23/2014 49.99CR 056807 R 4/23/2014 27.48CR 056807 411.38 P. 4/23/2014 3, SOO.00CR 056808 3,500.00 R 4/23/2014 59.25CR 056809 59.2� R I/23/2014 495.000R 056810 495.00 4/23/2014 3:17 PM A / P CHECK REGISTER PAGE: 4 PACKET: 06532 4.23.14 VENDOR SET: 99 BANK POOL POOLED CASH ACCOUNT CHECK CHECK CHECK CHECK VENDOR NAME / I.D. DESC TYPE DATE DISCOUNT AMOUNT NO$ AMOUNT -21220 IRBY TOOL 6 SAFETY I-SO08225902,001 BOLTS R 4/23/2014 "7.l5(R 056811 I-s008192294.001 RED STAKING FLAGS R 4/23/2014 65.000R 056811 142.75 26960 JEFF DANIELSON CONTRUCTION I-1129 CONCRETE FOR GUN RANGE R 4/23/2014 21520,OOCR 056812 2,520.00 25090 KLENKE, LAURA I-0402014 HOTEL AND PARKING SA R 4/23/2014 490.56CR 056813 490.56 08210 KWIK FAR I-18718 STATE INSPECTIONS R 4/23/2014 39.75CR 056814 I-19130 STATE INSPECTIONS R 4/23/2014 39.75CR 056814 79.50 03240 LAW ENFORCEMENT SYSTEMS I-184620 CITATION WARNING BOOKS R 4/23/2014 128.000R 056815 128.00 17060 LEAD 11 EXCELLENCE I-941328143 JAN FEB MARCH CE R 4/23/2014 648.000R 056816 648.00 25060 LEMONS PUBLICATIONS INC I-2541 SANGER NEWS R 4/23/2014 190.000R 05681") 190.00 26260 LIBRARY IDEAS, LLC I-04012014 FREADING EBOOK SERVICE R 4/23/2014 8.50CR 056818 8.50 25580 NORTH TEXAS GROUNDWATER CONSERVATION DISTRICT I-54 GROUND WATER USAGE R 4/23'2014 1,884.24CR 056819 1,884.24 24940 NTTA I-46183440 TOLLS FOR J HUNTER R 4/23,2014 6.96CR 056820 6.96 029"O OFFICE DEPOT I-702984060001 MISC OFFICE SUPPLIES R 4/23/2014 15.74CR 056821 I-703817546001 MISC OFFICE SUPPLIES R 4/23/2014 56.02CR 05682L I-704414155001 MISC OFFICE SUPPLIES R 4/23,2014 9.20CR 056821 I-706502421001 MISC OFFICE SUPPLIES R 4/23/2014 69.95CR 056621 150.91 25830 PACHECO KOCH, LLC I-29365 MCREYNOLDS RD RECON R 4/23/2014 25,648.80CR 056822 i-294]6 CONSULTING SERVICES - SEW R 4/23/2014 919.000R 056822 1-29477 NORTH I-35 OUTFALL SEWER R 4/23/2014 5,671.50CR 056822 32,239.30 4/23/2014 3:17 PM A / P CHECK REGISTER PAGE: 5 PACKET: 06532 4.23.14 VENDOR SET: 99 BANK POOL POOLED CASH ACCOUNT CHECK CHECK CHECK CHECK VENDOR NAME / S.D. DESC TYPE DATE DISCOUNT AMOUNT N04 AMOUNT 1 PATTERSON,HEATHER I-4/12/14 COMM CENTER R 4/23/2014 100,00CR 056823 100.00 25490 PLASTICPLACE I-6829 TRASH BAGS R 4/23/2014 28B.90CR 056824 288.90 22360 PREMIER LAWN AND POWER I-8380 VOLTAGE REGULATOR R 4/23/2014 58.99CR 056825 58.99 05510 PROGRESSIVE WASTE SOLUTIONS OF IS, INC I-MAR-14 PROGRESSIVE WASTE SOLUTIONS OF R 4/23/2014 49,797.53CR 056826 49,797.53 02170 REINERT PAPER 6 CHEMICAL, INC. I-312948 COMET TISSUE R 4/23/2014 32.20CR 056827 32.20 19290 RENTAL ONE I-439719-0001 BOMAG BT 60/4 R 4/23/2014 21885.00OR 056828 2,885.00 11170 RICOH USA, INC: QDS I-25082742 MONTHLY MAINTENANCE R 4/23/2014 205.33CR 056829 205.33 25410 ROWS WRECKER L TOWING SERVICE LLC I-1026 DUMP TRUCK BROKE DOES R 4/23/2014 87.50CR 056830 87.50 21840 ROOF RASTERS I-12716 RENORK LOUVERS R 4/23/2014 11596.00CR 056831 1,596.00 24280 RUSSSELL MADDEN INC 1-14-0087 RECALIBRATE WATER NITERS R 4/23/2014 450.00OR 056832 450.00 04290 SANGER CHAMBER OF COMNERC I-04172014 HOTELNOTEL TAX R 4/23/2014 11526.14CR 056833 1,526.14 01800 SANGER INSURANCE; , I-SDQDSON NOTARY FEES - OODSON R 4/23,2014 99.00CR 056834 99.00 25310 SANGER PLUMBING I-005651 REMOVING TOLIETS R 4/23, 2014 345.90CR 056835 345.90 25590 SCHNEIDER ENGINEERING 1-000000021372 13SAN5102 ARCOT 'IRAN OF DESIGN R 4/23/2014 11077.68CR 056836 11077.68 4/23/2014 3:17 PM A / P CHECK REGISTER PAGE: 6 PACKET: 06532 4.23.14 VENDOR SET: 99 BANK POOL POOLED CASH ACCOUNT CHECK CHECK CHECK CHECK VENDOR NAME / I.D. DESC TYPE DATE DISCOUNT AMOUNT N04 AMOUNT 27130 SEPIER EQUIP14ENT CO OF AMERICA I-0000133115 HANDI CLAN FOR SET TRUCK R 4/23/2014 594,65CR 056837 594.65 02370 SHERWIN WILLIAMS I-5264-9 SHERWIN WILLIAMS R 4/23/2014 114.36CR 056838 1-5265-6 PAINTS R 4/23/2014 182.90CR 056838 297.26 26700 SOUTHERN TIRE MART, LLC I-4803080 PURSUIT TIRES 410-20 R 4/23/2014 488.000R 056839 488.00 12460 SUPPERS PARTS WASHERS I-s27585 ANNUAL WASHER SERVICE R 4/23/2014 150.000R 056840 150.00 26490 TEAGUE NALL AND PERKINS, INC I-13247-04 TXCDBG 4712340 R 4/23/2014 6,285.25CR 056841 6,285,25 23050 TEXAS TRUXX OUTFITTERS I-10684 WINDOW TINT, SPRAY IN R 4/23/2014 75.000R 056842 75.00 27080 F. TRAVIS MONTGORERY I-04212014 CLEAN CARPET R 4/23/2014 1,927.48CR 056843 1,927.48 VAULTLOGIX I-1636998 SERVER BACK UP 1YR R 4/23/2014 775.20CR 056844 775.20 03020 WESCO DISTRIBUTION, INC 1-699486 CROSS ARHI 'TYPE PIN R 4/23/2014 374.23CR 056845 374,23 TOTAL ERRORS: 0 I REGULAR CHECKS: HANDWRITTEN CHECKS: PRE -WRITE CHECKS: DRAFTS: VOID CHECKS: NON CHECKS: CORRECTIONS: REGISTER TOTALS: TOTAL WARNINGS: 0 NOS DISCOUNTS CtiECK AMT TOTAL APPLIED b7 0.00 175, 931.49 175,931.49 0 0.00 0.00 0.00 0 0.00 0.00 0.00 a 0.00 0.00 a.00 _ 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 68 0.00 1-151931.49 1751931.49 4/28/2014 9:59 AM PACKET: 06543 Regular Payments VENDOR SET: 99 BANK POOH, POOLED CASH ACCOUNT A / P CHECK REGISTER AGE: 1 V NAWE / Z.D. OEEC 27000 ME't'ALMAR'P I-04282014 REPLACE METAL CANOPY TOTAL ERRORS: D CHECK CHECK CHECK CHECK PI:: DATE DISCOUNT AMOUNT NON AMOUNT R 4/28/2D14 20,965.95CR 056846 20r965.95 � t T'0 T A L S ` ' NON DISCOUNTS CHECK AMT TOTAL APYt.IEU REGULAR CHECKS: 1 0.00 20r9G5.95 20,965,95 HANDWRITTEN CHECKS: 0 0.00 0.00 0.00 PILE -WRITE CHECKS: 0 0.00 0.00 0.00 DRAFTS: 0 0.00 0.00 0,00 VOID CHECKS: 0 0.00 0.00 0.00 NON CHECKS: 0 0.00 0.00 0.00 CORRECTIONS: 0 0.00 0.00 O.DO REGISTER TOTALS: 1 0.00 20r965.95 20r965.95 TOTAL WARNINGS: 0 PROCLAMATION 054544 WHEREAS, today's society is finding more citizens involved in motorcycling on the roads of our country; and WHEREAS, motorcyclists are roughly unprotected and therefore more prone to injury or death in a crash than other vehicle drivers; and WHEREAS, campaigns have helped inform riders and motorists alike on motorcycle safety issues to reduce motorcycle related risks, injuries, and, most of all, fatalities, through a comprehensive approach to motorcycle safety; and WHEREAS, it is the responsibility of all who put themselves behind the wheel, to become aware of motorcyclists, regarding them with the same respect as any other vehicle traveling the highways of this country; and it is the responsibility of riders and motorists alike to obey all traffic laws and safety rules; and WHEREAS, urging all citizens of our community to become aware of the inherent danger involved in operating a motorcycle, and for riders and motorists alike to give each other the mutual respect they deserve; NOW, THEREFORE I, Thomas Muir, Mayor of the City of Sanger do hereby proclaim the month of May, as Motorcycle Safety and Awareness Month in this city. Further, I urge all residents to do their part to increase safety and awareness in our community. IN WITNESS WHEREOF, I have set my hand and caused the Seal of the City to be affixedthis day ofAllay, 2014. Thomas Muir, Mayor Tami Taber, City Secretary AGENDA INFORMATION SHEET DENIAL OF ATMOS ENERGY CORPORATION, MID-TEX DIVISION'S (ATMOS) REQUEST TO INCREASE ITS REVENUE AND CHANGE ITS RATES UNDER THE RATE REVIEW MECHANISM ATMOS TEXAS MUNICIPALITIES The City is a member of the Atmos Texas Municipalities (ATM). The ATM group was organized by a number of municipalities served by Atmos and has been represented by the law firm of Herrera & Boyle, PLLC (through Mr. Alfred R. Herrera). ATM also retained the services of a consulting firm, Utilitech, Inc. (Mr. Mike Brosch and Mr. Steve Carver) to assist in reviewing an application submitted by the Atmos Energy -Mid -Tex Division (Atmos) that seeks to increase its rates and change its rates. Both Herrera & Boyle, PLLC and Utilitech, Inc. have participated in prior rate cases involving Atmos and have extensive knowledge and experience in rate matters affecting Atmos' rates, operations, and services. HISTORY OF PRIOR RATE INCREASES General Rate Case (Approved December 2012) In January 2012, Atmos sought an increase of about $49.1 million. Ultimately, the ATM cities and Atmos were not able to reach agreement on an increase and Atmos filed an appeal to the Railroad Commission of Texas. The Railroad Commission approved an increase of about $24.1 million, representing an increase in revenue of about 7% Prior brcrease Unrler t/re RRM (July 20131 In the summer of 2013, Atmos and ATM entered into an agreement that approved a revised Rate Review Mechanism (RRM). The RRM approved in the Summer of 2013 is the third iteration of that rate -setting mechanism. Less than a year ago, on or around July 15, 2013, Atmos submitted a request to increase rates under the RRM. Ahnos requested an increase in rates on a system -wide basis of $22.7 million, which is an increase of about 5%. Following a series of settlement negotiations between Atmos' experts and ATM's experts, Atmos agreed to an increase of $16.6 million, an increase in revenue of about 3.7%. RATE REVIEW MECHANISM On February 28, 2013, Atmos initiated a ratemalcing proceeding with cities in the coalition known as the Atmos Texas Municipalities (ATM) by submitting an application to increase its revenue by about $45.6 million and to change its rates to collect that increase in revenue. An increase of $45.6 million represents an increase of about 9.2% in annual base -rate revenue. The increase for an average customer is as follows: Residential Customer: $2.02/month (9.96%) in base rates. Connnercial Customer: $2.16/month (10.16%) in base rates. ndustr•ial/Transportation Customer: $53.65/month (10.29 %) in base rates. ATM retained the law firm of Herrera &Boyle, PLLC (H&B) as Special Counsel and the consulting firm of Utilitech, Inc. (Utilitech) to review Atmos' filing. After an extensive review of Atmos' request to increase its revenue and change its rates, on about April 10, 2014, ATM's Special Counsel and consultants concluded Atmos merited an increase of no more than about $26.6 million. Special Counsel's and the consultants' assessment was preliminary and excluded additional downward adjustments to Atmos' request that are not included in the $26.6 million amount because of the amount of time to review Atmos' request and because of then -outstanding responses to requests for information submitted to Atmos by ATM's Special Counsel. The basis for ATM's consultants' preliminary assessment that Atmos warranted at most an increase of $26.6 million is based on numerous exclusions of costs or rejection of accounting practices for which Atmos failed to carry its burden of proof that such costs or practices were reasonable and consistent with sound ratemalcing and regulatory principles. Examples of these items included Atmos' request with regard to: • An increase in Uncollectible Revenue related to implementation of a new billing system and unexplained cost overruns associated with implementation of Lite new billing system • An increase in promotional advertising expenses unrelated to the conservation of energy and more related to promoting Atmos' corporate image • Atmos' Incentive Compensation program for its executives and upper management • Inclusion in its capital accounts of items the Railroad Commission had in prior orders excluded from Atmos' cost of service • Atmos' use of projected costs related to medical and dental benefits • Atmos' deferred accounting treatment of certain pension benefits • The amount of Cash Working Capital Atmos proposed to recover from customers • Atmos' treatment of certain federal income tax expenses including its ratemaking treatment of accumulated deferred income tax (ADIT) reserves • Atmos' calculation of accounting balances related to certain regulatory assets allowed under the Railroad Commission's rules This is not intended to be nor is it an exhaustive list of the issues identified by ATM's rate experts. It is provided to show some of the areas in Atmos' application to change rates in which ATM's Special Counsel and rate experts found deficiencies in Atmos' request. ATM's Special Counsel and consultants engaged in good -faith negotiations with Atmos to attempt to reach a settlement of Atmos' proposed increase, but those negotiations failed to produce an agreement. At this juncttn•e, the ATM cities' options are as follows: Option 1. To deny Ahnos' requested increase and approve no increase; Option 2. To deny Atmos' requested increase and approve an increase of no more than $26.6 million, based on ATM's consultants' preliminary report; or Option 3. To take no action and allow Atmos' proposed increase of $45.6 million and its related rates to go into effect. Note that under Option 1 and Option 2, Atmos has the right to appeal the ATM cities' decisions to the Railroad Commission of Texas and pending such an appeal has the right to implement its proposed increase of $45.6 million effective June 1, 2014, subject to refund if the Commission's review later finds a lower amount is appropriate. Atmos has notified ATM's Special Counsel of Atmos' intent to file an appeal of the City's decision to deny its requested increase. RECOMMENDATION: ATM's experts' preliminary report suggests Atmos does not warrant an increase of $45.6 million. Given that the ATM cities and Atmos were not able to reach agreement on an amount by which to increase Atmos' annual revenue and that ATM's Special Counsel and rate experts believe a much lower increase is in order, and in light of the significant increases Atmos has obtained in the recent past, ATM's Special Counsel recommends that the City deny Atmos' proposed increase in revenue and changes in rates. Atmos will appeal the City's decision denying its requested increase and changes in rates to the Railroad Commission. ATM's Special Counsel recommends that the City participate in Atmos' appeal to the Railroad Commission and in any appeals to the courts of the Railroad Commission's decision. The attached Resolution also directs Atmos to reimburse ATM's rate -case expenses incurred to date and to reimburse on a monthly basis, ATM's rate -case expenses for any and all related appeals. The City should take action as soon as possible but no later than May 31, 2014. RESOLUTION 4R05-0444 A RESOLUTION BY THE CITY OF BANGER, TEXAS DENYING AN INCREASE IN RATES REQUESTED BY ATMOS ENERGY CORPORATION — MIDTEX DIVISION, SUBMITTED ON OR ABOUT FEBRUARY 28, 2014 UNDER THE RATE REVIEW MECHANISM; FINDING ATMOS' REQUEST UNREASONABLE; DIRECTING ATMOS ENERGY TO REIMBURSE THE CITY'S RATE -CASE EXPENSES; AUTHORIZING THE CITY'S PARTICIPATION IN APPEALS ATMOS MAY TAKE DENYING ITS REQUESTED INCREASE; REQUIRING DELIVERY OF THE RESOLUTION TO THE COMPANY AND THE CITY'S SPECIAL COUNSEL; FINDING THAT THE MEETING COMPLIED WITH THE OPEN MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT. WHEREAS, Atmos >Jnergy Corporation-MidTex Division ("Atmos" or "Company") filed a request with the City of Sanger, Texas ("City") on or about February 28, 2014, thereby initiating a ratemaking proceeding to increase its revenue and change its rates within the corporate limits of the City, and specifically to increase its system -wide, annual revenue requirement by approximately $45.7 million, which is an increase in base rates exclusive of the cost of gas of approximately 9.2%; and WHEREAS, the City is a regulatory authority under Utilities Code § 103.001 (more commonly referred to as the Gas Utility Regulatory Act ("GURA")) and has exclusive original jurisdiction over Atmos' rates, operations, and services within the City; and WHEREAS, Section 103.021 of GURA authorizes the City to obtain information fiom Atmos as necessary to make a determination of the basis for the Atmos' proposed increase in rates in the City; and WHEREAS, Section 103.022 of GURA provides that Atmos shall reimburse the City its reasonable cost of engaging personnel to assist it in reviewing Atmos' application; and WHEREAS, the City has participated in prior cases regarding Atmos as part of a coalition of ces known as the Atmos Texas Municipaes ; and 1 WHEREAS, Atmos submitted its application to increase rates under the Rate Review Mechanism (1UUv1 ); and WHEREAS, Special Counsel and experts representing ATM have analyzed the data furnished by Atmos, sought and obtained additional data, and have interviewed Atmos' management regarding Atmos' request to increase rates; and WHEREAS, the City's Special Counsel and rate experts concluded that Atmos' request to increase rates by $45.7 million is unreasonably high; and WHEREAS, the City's Special Counsel and rate experts' conclusion that Atmos' request to increase rates by $45.7 million is unreasonably high is based on numerous elements in Atmos' request that are inconsistent with sound rate -setting and regulatory principles; and WHEREAS, the City's Special Counsel and rate experts participated in discussions with Atmos to attempt to resolve Atmos' proposed change in rates and increase in revenue through negotiations but were unable to reach agreement; and WHEREAS, it is anticipated that Atmos will appeal the City's denial of its request to increase rates to the Railroad Commission of Texas and possibly to the courts, thus requiring the continued assistance of Special Counsel and rate experts in those proceedings. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS THAT: Section 1. The findings set forth in this Resolution are hereby in all things approved. Section 2. Atmos Energy Corporation-MidTex Division's request to change its rates and to increase its revenue by approximately $45.7 million is hereby DENIED. Section 3. Pursuant to Utilities Code § 103.022 and under the terms of the Rate Review Mechanism, Atmos is hereby directed to reimburse the City's rate case expenses, as participants in the coalition of cities known as the Atmos Texas Municipalities, for engaging counsel, rate consultants, and other personnel in assisting the City in its investigation of Atmos' proposed increase in rates, and is further directed to reimburse the City's rate case expenses on a monthly basis for the City's participation in any appeal Atmos seeks of the City denial of its request to increase rates. Section 4. This Resolution supersedes any Resolution or Ordinance previously adopted by the City Council to the extent such previously adopted Resolution or Ordinance is inconsistent with this Resolution. Section 5. The meeting at which this Resolution was approved was in all things conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 55L Section 6. If any one or more sections or clauses of this Resolution is judged to be unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provisions of this Resolution and the remaining provisions of the Resolution shall be interpreted as if the offending section or clause never existed. Section 7. This Resolution shall become effective fiom and after its passage. Section 8. A copy of this Resolution shall be sent to Atmos Energy -Mid -Tex Division, care of Christopher Felan, Vice President of Rates and Regulatory Affairs, Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1600, Dallas, Texas 75240, and to Special Counsel, Mr. Alfred R. Herrera, Herrera & Boyle, PLLC, 816 Congress Avenue, Suite 1250, Austin, Texas 78701, PASSED AND APPROVED this day of May, 2014. Thomas Muir, Mayor ATTEST: Tami Taber, City Secretary BUILDING U5E AGREEMENT between CITY OF SANGER, TEXAS ("OWNER") and Sanger Area Historical Society ("SAHS") (511 N. Fifth Street, Sanger, Texas) BUILDING AGREEMENT AGREEMENT This Use Agreement (this "Agreement") is entered into by and between The City of Sanger Texas ("Owner"), and the Sanger Area Historical Society. ("SAHS"), and shall be effective as of May 1, 2014 (the "Effective Date"), 1. Basic Agreement Information. The key business terms used in this Agreement are defined as follows: A. "Building" shall mean the building located at 511 N. Fifth Street, Sanger, Texas. B. "Rentable Square Footage of the Building" is deemed to be 900 square feet. C. "Commencement Date": the same date as the Effective Date. D. "Security Deposit": None. E. "Notice Addresses": SAHS: Owner: City of Sanger Texas PO Box 1729 Sanger, Texas 76266 Attn: City Manager F. "Laws "means all applicable statutes, codes, ordinances, orders, rules and regulations of any municipal or governmental entity, now or hereafter adopted, including the Americans with Disabilities Act and any other law pertaining to disabilities and architectural barriers (collectively, 'ADA"), and all laws pertaining to the environment, including the Comprehensive Environmental Response, Compensation and Liability Act, as amended, 42 U.S.C. §9601 et. seq. ("CERCLA"). 2. Term: Possession, A. Term. This Agreement shall govern the relationship between Owner and SAHS with respect to the Premises from the Effective Date through the Expiration Date, unless terminated in accordance with this Agreement. The Term of this Agreement is month to month and shall commence on the Commencement Date. Owner or SAHS may terminate the Agreement at any time by giving thirty (30) days' notice to the other party. Be Acceptance of Premises. The Premises are accepted by SAHS in as is" condition and configuration. BY TAKING POSSESSION OF TICE PREMISES, SAHS AGREES THAT THE PREMISES ARE IN GOOD ORDER AND SATISFACTORY CONDITION AND AGREES THAT THERE ARE NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, BY OWNER REGARDING THE CONDITION OF THE PREMISES OR THE BUILDING. SAHS acknowledges and agrees that Owner has no obligations to perform any work in connection with the Premises. SAHS agrees that Owner shall have no obligation to make any modifications to the Property under the Americans with Disabilities Act or any other federal, state or local laws, rules, regulations, codes or other requirements related to accessibility. 3, Char¢e for Use of the Premises. Owner will not charge SAHS for use of the Premises. A. Utilities: The City of Sanger shall pay the reasonable cost of utilities. Be Excess Utilities. SAHS shall pay any excess utility charges used by the negligence of the SANS or any person acting on behalf of the SAHS. C. Repairs. Owner shall be responsible for repairs to the building provided damage was not caused by the SAHS. Damage caused by the SAHS shall be the SAHS's responsibility. Routine cleaning and cleaning supplies shall be the responsibility of the SAHS. Owner will not provide Janitorial Service. Be Insurance. Owner shall carry insurance on the building only. Insurance of contents shall be the responsibility of the SAHS. 4. SAHS's Use of Premises. A. Permitted Uses. The Premises shall be used only for a museum and associated activities of the SAHS. The Premises may not be used for any purpose which would, in Owner's reasonable opinion, impair the reputation or quality of the Building, overburden any of the Building systems, Common Areas or Parking Facilities (including any use which would create a population density in the Premises which is in excess of the density which is standard for the Building), impair Owner's efforts to use space or otherwise interfere with the operation of the Property. Be Compliance with Laws. SAHS shall comply with all Laws regarding the operation of SAHS's business and the use, condition, configuration and occupancy of the Premises and the use of the Common Areas. SAHS, within ten (10) days after receipt, shall provide Owner with copies of any notices SAHS receives regarding a violation or alleged or potential violation of any Laws. SAHS shall comply with the rules and regulations (or modifications thereto) adopted by Owner from time to time. Such rules and regulations will be applied in an equitable manner as determined by Owner. SAHS shall also cause its agents, contractors, subcontractors, employees, and customers, to comply with all rules and regulations. Co SAHS's Security. SAHS shall (1) lock the doors to the Premises and take other reasonable steps to secure the Premises and the personal property of all SAHS Parties (2) keep and maintain in good working order all security devices installed in the Premises by or for the benefit of SANS (such as locks, smoke detectors and burglar alarms); and (3) cooperate with Owner on security matters. SAHS acknowledges that any security measures employed by Owner are for Owner's own protection; that Owner is not a guarantor of the security or safety of the SAHS Parties or their property; and that such security matters are the responsibility of SANS and the local law enforcement authorities. D. Other Services Provided by SAHS. SANS shall arrange for and pay for the costs of any janitorial services, window cleaning services, security services and/or other services related to the Premises desired by SAHS. 5. Entry by Owner. Owner, its agents, contractors and representatives may enter the Premises to inspect or show the Premises, to clean and make repairs, alterations or additions to the Premises, and to conduct or facilitate repairs, alterations or additions to any portion of the Building, including other SAHSs' premises. Except in emergencies or to provide any Building services after Normal Business Hours, Owner shall provide SAHS with reasonable prior notice of entry into the Premises, which may be given orally, however, SANS hereby acknowledges and agrees that Owner shall have the right to enter the Premises without providing prior notice. Owner shall have the right to temporarily close all or a portion of the Premises to perform repairs, alterations and additions, if reasonably necessary for the protection and safety of SAHS and its employees. Except in emergencies, Owner will not close the Premises if the work can reasonably be completed on weekends and after Normal Business Hours; provided, however, that Owner is not required to conduct work on weekends or after Normal Business Hours if such work can be conducted without closing the Premises. Entry by Owner for any such purposes shall not constitute a constructive eviction or entitle SANS to an abatement or reduction of Rent. 6. Assignment and Subletting. A. Owner's Consent Required. SANS shall not assign, transfer or encumber any interest in this Agreement or sublease or allow any third party to Agreement any portion of the Premises (collectively or individually, a "Transfer") without the prior written consent of Owner. 9. Liens. SAHS shall not permit mechanic's or other liens to be placed upon the Property, or Premises in connection with any work or service done or purportedly done by or for the benefit of SANS. If a lien is so placed, SAHS shall, within ten (10) days of notice from Owner of the filing of the lien, fully discharge the lien by settling the claim, which resulted in the lien or by bonding or insuring over the lien in the manner prescribed by the applicable lien Law. If SANS fails to discharge the lien, then, in addition to any other right or remedy of Owner, Owner may bond or insure over the lien or otherwise discharge the lien. SANS shall, within thirty (30) days after receipt of an invoice from Owner, reimburse Owner for any amount paid by Owner, including reasonable attorneys' fees, to bond or insure over the lien or discharge the lien. 8. Indemnity and Waiver of Claims. A. SAHS's Indemnity. SAHS shall hold Owner, its trustees, members, principals, beneficiaries, partners, officers, directors; shareholders, employees, Mortgagee(s) and agents harmless from, and indemnify and defend such parties against, all liabilities, obligations, damages, penalties, claims, actions, costs, charges and expenses, including reasonable attorneys' fees and other professional fees (collectively, "Claims") that may be imposed upon, incurred by or asserted against any of such indemnified parties that arise out of or in connection with any damage or injury (i) occurring in the Premises, except to the extent caused by the negligence or willful misconduct of Owner or any of its employees, agents or contractors (collectively, "Owner Parties"); or (ii) occurring elsewhere in the Building or on the Property to the extent caused by the negligence or willful misconduct of SANS or any assignees, and licensees claiming by, through or under SAHS, or any of their respective agents, contractors, employees and invitees (collectively, "SANS Parties"). B. Owner's Indemnity. Owner shall hold SAHS, its trustees, members, principals, beneficiaries, partners, officers, directors, shareholders, employees and agents harmless from, and indemnify and defend such parties against, all liabilities, obligations, damages, penalties, claims, actions, costs, charges and expenses, including reasonable attorneys' fees and other professional fees, which may be imposed upon, incurred by or asserted against any of such indemnified parties that arise out of or in connection with any damage or injury occurring in the Premises or the Building or on the Property to the extent caused by the negligence or willful misconduct of any of the Owner Parties. 9. Volunteers A. Volunteers not employees of the City of Sanger. SAHS shall staff the museum with SAHS volunteers. SANS volunteers are not volunteers or employees of the City of Sanger and will not be covered under the City's (Owner's) Workers Compensation Insurance. 10. Mutual Waiver of Subrogation. Notwithstanding anything in this Agreement to the contrary, SANS waives, and shall cause its insurance carrier(s) and any other party claiming through or under such carrier(s), by way of subrogation or otherwise, to waive any and all rights of recovery, claim, action or cause of action against all Owner Parties and the trustees, principals, beneficiaries, partners, officers, directors and employees of Owner Parties, for any loss or damage to SAHS's business, any loss of Agreement of the Premises, and any loss, theft or damage to SAHS's Property (including SAHS's automobiles or the contents thereof), INCLUDING ALL RIGHTS (BY WAY OF SUBROGATION OR OTHERWISE) OF RECOVERY, CLAIMS, ACTIONS OR CAUSE OF ACTION ARISING OUT OF THE NEGLIGENCE OF ANY OWNER PARTIES, which loss or damage is (or would have been, had the insurance required by this Agreement been maintained) covered by insurance. In addition, Owner waives, and shall cause its insurance carrier(s) and any other party claiming through or under such carrier(s), by way of subrogation or otherwise, to waive any and all rights of recovery, claim, action or caused of action against all SAHS Parties and the trustees, principals, beneficiaries, partners; officers, directors and employees of SAHS Parties, for any loss of or damage to or loss of use of the Building, any additions or improvements to the Building, or any contents thereof, INCLUDING ALL RIGHTS (BY WAY OF SUBROGATION OR OTHERWISE) OF RECOVERY, CLAIMS, ACTIONS OR CAUSE OF ACTION ARISING OUT OF THE NEGLIGENCE OF ANY SAHS PARTIES, which loss or damage is (or would have been, had the insurance required by this Agreement been maintained) covered by insurance. It. Events of Default. SANS shall be considered to be in default under this Agreement upon the occurrence of any of the following events of default: A. SAHS's failure to comply with any term, provision or covenant of this Agreement, if the failure is not cured within ten (10) days after written notice to SANS. However, if SAHS's failure to comply cannot reasonably be cured within ten (10) days, SAHS shall be allowed additional time not to exceed an additional ten (10) days) as is reasonably necessary to cure the failure so long as: (1) SAHS commences to cure the failure within the 10 day period following Owner's initial written notice, and (2) SAHS diligently pursues a course of action that will cure the failure and bring SAHS back into compliance with this Agreement. However, if SAHS's failure to comply creates a hazardous condition, the failure must be cured immediately upon notice to SAHS. In addition, if Owner provides SAHS with notice of SAHS's failure to comply with the same specific term, provision or covenant of this Agreement on more than two (2) occasions during any 12-month period, SAHS's subsequent violation of the same term, provision or covenant shall, at Owner's option, be deemed an incurable event of default by SAHS. B. SAHS or any Guarantor becomes insolvent, files a petition for protection under the U.S. Bankruptcy Code (or similar Law) or a petition is filed against SAHS or any Guarantor under such Laws and is not dismissed within forty-five (45) days after the date of such filing, makes a transfer in fraud of creditors or makes an assignment for the benefit of creditors, or admits in writing its inability to pay its debts when due. C. SAHS's leasehold estate is taken by process or operation of Law. 12. Remedies. A. Owner's Remedies. Upon any default, Owner shall have the right without notice or demand to pursue any of its rights and remedies at Law or in equity, including any one or more of the following remedies: (1) Terminate this Agreement, in which case SAHS shall immediately surrender the Premises to Owner. If SAHS fails to surrender the Premises, Owner may, in compliance with applicable Law and without prejudice to any other right or remedy, enter upon and take possession of the Premises and expel and remove SAHS, SAHS's Property and any parties occupying all or any part of the Premises. 13. No Waiver. Neither party's failure to declare a default immediately upon its occurrence or delay in taking action for a default shall constitute a waiver of the default, nor shall it constitute an estoppel. Neither party's failure to enforce its rights for a default shall constitute a waiver of that party's rights regarding any subsequent default. 14, SAHS's Right to Possession. Provided SAHS fully performs all of its other covenants and agreements under this Agreement, SAHS shall have the right to occupy the Premises without hindrance from Owner or any person lawfully claiming through Owner, subject to the terms of this Agreement, all Mortgages, insurance requirements and applicable Law. This covenant and all other covenants of Owner shall be binding upon Owner and its successors only during its or their respective periods of ownership of the Building, and shall not be a personal covenant of any Owner Parties. 15. Attorneys' Fees. If either party institutes a suit against the other for violation of or to enforce any covenant or condition of this Agreement, or if either party intervenes in any suit in which the other is a party to enforce or protect its interest or rights, the prevailing party shall be entitled to all of its costs and expenses, including reasonable attorneys' fees. 16. Notice. If a demand, request, approval, consent or notice (collectively, a "notice") shall or may be given to either party by the other, the notice shall be in writing and delivered by hand or sent by registered or certified mail with return receipt requested, or sent by overnight or same day courier service, or sent by facsimile, at the party's respective Notice Address(es) set forth in Article 1, except that if SANS has vacated the Premises (or if the Notice Address for SAHS is other than the Premises, and SAHS has vacated such address) without providing Owner a new Notice Address, Owner may serve notice in any manner described in this Article or in any other manner permitted by Law. Each notice shall be deemed to have been received or given on the earlier to occur of actual delivery (which, in the case of delivery by facsimile, shall be deemed to occur at the time of delivery indicated on the electronic confirmation of the facsimile) or the date on which delivery is first refused, or, if SAHS has vacated the Premises or the other Notice Address of SAHS without providing a new Notice Address, three (3) days after notice is deposited in the U.S. mail or with a courier service in the manner described above. Either party may, at any time, change its Notice Address by giving the other party written notice of the new address in the manner described in this Article. 17. Reserved Riehts. This Agreement does not grant any rights to light or air over or about the Building. Owner excepts and reserves exclusively to itself the Agreement of: (A) roofs, (B) telephone, electrical and janitorial closets, (C) equipment rooms, Building risers or similar areas that are used by Owner for the provision of Building services, (D) rights to the land and improvements below the floor of the Premises, (E) the improvements and air rights above the Premises, (F) the improvements and air rights outside the demising walls of the Premises, (G) the areas within the Premises used for the installation of utility lines and other installations serving occupants of the Building, and (H) any other areas designated from time to time by Owner as service areas of the Building. Owner has the right to change the Building's name or address. Owner also has the right to make such other changes to the Property and Building as Owner deems appropriate, provided the changes do not materially affect SAHS's ability to use the Premises for the Permitted use. Owner shall also have the right (but not the obligation) to temporarily close the Building if Owner reasonably determines that there is an imminent danger of significant damage to the Building or of personal injury to Owner's employees or the occupants of the Building. The circumstances under which Owner may temporarily close the Building shall include, without limitation, electrical interruptions, weather emergencies and civil disturbances. A closure of the Building under such circumstances shall not constitute a constructive eviction nor entitle SAHS to an abatement or reduction of Rent. 18. Surrender of Premises. All improvements to the Premises shall be owned by Owner and shall remain upon the Premises without compensation to SANS. At the expiration or earlier termination of this Agreement or SAHS's right of possession, SAHS shall remove SAHS's Removable Property (defined below) from the Premises, and quit and surrender the Premises to Owner, broom clean, and in good order, condition and repair, ordinary wear and tear excepted. As used herein, the term "SAHS's Removable Properly" shall mean: (A) Cable installed by or for the benefit of SAHS and located in the Premises or other portions of the Building; (B) any Improvements that are performed by or for the benefit of SAHS and, in Owner's reasonable judgment, are of a nature that would require removal and repair costs that are materially in excess of the removal and repair costs associated with standard improvements ("Special Installations"); and (C) SAHS's personal property. Notwithstanding the foregoing, Owner may, in Owner's sole discretion and at no cost to Owner, require SAHS to leave any of its Special Installations in the Premises. If SAHS fails to remove any of SAHS's Removable Property (other than Special Installations which Owner has designated to remain in the Premises) within two (2) days after the tennination of this Agreement or of SAHS's right to possession, Owner, at SAHS's sole cost and expense, shall be entitled (but not obligated) to remove and store SAHS's Removable Property. Owner shall not be responsible for the value, preservation or safekeeping of SAHS's Removable Property. SAHS shall pay Owner, upon demand, the expenses and storage charges incurred for SAHS's Removable Property. If SAHS fails to remove SAHS's Removable Property from the Premises or storage, as the case may be, within thirty (30) days after written notice, Owner may deem all or any part of SAHS's Removable Property to be abandoned, and title to SAHS's Removable Property (except with respect to any Hazardous Material shall be deemed to be immediately vested in Owner. Except for Special Installations designated by Owner to remain in the Premises, SAHS's Removable Property shall be removed by SAHS before the Expiration Date; provided that upon Owner's prior written consent (which must be requested by SAHS at least thirty (30) days in advance of the Expiration Date and which shall not be unreasonably withheld), SAHS may remain in the Premises for up to five (5) days after the Expiration Date for the sole purpose of removing SAHS's Removable Property. SAHS's possession of the Premises for such purpose shall be subject to all of the terms and conditions of this Agreement. In the event this Agreement is terminated prior to the Expiration Date, SAHS's Removable Property (except for Special Installations designated by Owner to remain in the Premises) shall be removed by SAHS on or before such earlier date of termination. SAHS shall repair damage caused by the installation or removal of SAHS's Removable Property. 19. Hazardous Materials. No Hazardous Material (defined below) (except for de nsinimis quantities of housed cleaning products and office supplies used in the ordinary course of SAHS's business at the Premises and that are used, kept and disposed of in compliance with Laws) shall be brought upon, used, kept or disposed of in or about the Premises or the Property by any SAHS Parties or any of SAHS's transferees, contractors or licensees without Owner's prior written consent, which consent may be withheld in Owner's sole and absolute discretion. 20. Miscellaneous. A. Governing Law; Jurisdiction and Venue; Severability; Paragraph Headings. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES SHALL BE INTERPRETED, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE IN WHICH THE BUILDING IS LOCATED, ALL OBLIGATIONS UNDER THIS AGREEMENT ARE PERFORMABLE IN THE COUNTY OR OTHER JURISDICTION WHERE THE BUILDING IS LOCATED, WHICH SHALL BE THE EXCLUSIVE VENUE FOR ALL LEGAL ACTIONS. If any term or provision of this Agreement shall to any extent be invalid or unenforceable, the remainder of this Agreement shall not be affected, and each provision of this Agreement shall be valid and enforced to the fullest extent permitted by Law. The headings and titles to the Articles and Sections of this Agreement are for convenience only and shall have no effect on the interpretation of any part of this Agreement. The word "including" shall not be construed restrictively to limit or exclude other items not listed. B. Recording. SAHS shall not record this Agreement or any memorandum without Owner's prior written consent. C. Force Maieure. Whenever a period of time is prescribed for the taking of an action by Owner or SAHS, the period of time for the performance of such action shall be extended by the number of days that the performance is actually delayed due to strikes, acts of God, shortages of labor or materials, war, civil disturbances and other caused beyond the reasonable control of the performing party ("Force Majeure"). However, events of Force Majeure shall not extend any period of time for the payment of Rent or other sums payable by either party or any period of time for the written exercise of an option or right by either party. D. Transferability; Reuse of Owner. Owner shall have the right to transfer and assign, in whole or in part, all of its rights and obligations under this Agreement and in the Building and/or Property, and upon such transfer Owner shall be released from any further obligations hereunder, and SAHS agrees to look solely to the successor in interest of Owner for the performance of such obligations. E. Authority; Joint and Several Liability. Owner covenants, warrants and represents that: (1) each individual executing, attesting and/or delivering this Agreement on behalf of Owner is authorized to do so on behalf of Owner; (2) this Agreement is binding upon and enforceable against Owner; and (3) Owner is duly organized and legally existing in the state of its organization and is qualified to do business in the state in which the Premises are located. Similarly, SAHS covenants, warrants and represents that: (a) each individual executing, attesting and/or delivering this Agreement on behalf of SAHS is authorized to do so on behalf of SAHS; (b) this Agreement is binding upon and enforceable against SANS; and (c) SAHS is duly organized and legally existing in the state of its organization and is qualified to do business in the state in which the Premises are located. If there is more than one SAHS, or if SAHS is comprised of more than one party or entity, the obligations imposed upon SAHS shall be joint and several obligations of all the parties and entities. Notices, payments and agreements given or made by, with or to any one person or entity shall be deemed to have been given or made by, with and to all of them. F. Time is of the Essence; Relationship; Successors and Assigns. Time is of the essence with respect to SAHS's performance of its obligations and the exercise of any expansion, renewal or extension rights or other options granted to SAHS. This Agreement shall create only the relationship of Owner and occupant between the parties, and not a partnership, joint venture or any other relationship. This Agreement and the covenants and conditions in this Agreement shall inure only to the benefit of and be binding only upon Owner and SAHS and their permitted successors and assigns. G. Survival of Obligations. The expiration of the Term, whether by lapse of time or otherwise, shall not relieve either party of any obligations which accrued prior to or which may continue to accrue after the expiration or early termination of this Agreement. H. Binding Effect. Owner has delivered a copy of this Agreement to SAHS for SAHS's review only, and the delivery of it does not constitute an offer to SAHS or an option. This Agreement shall not be effective against any party hereto until an original copy of this Agreement has been signed by such party and delivered to the other party. I. Full Agreement; Amendments, This Agreement contains the parties' entire agreement regarding the subject matter hereof. This Agreement supersedes all understandings, discussions, and agreements previously made between the parties, written or oral, and neither party is relying upon any warranty, statement or representation not contained in this Agreement. This Agreement may be modified only by a written agreement signed by Owner and SAHS. The exhibits and riders attached hereto are incorporated herein and made a part of this Agreement for all purposes. Owner and SAHS have executed this Agreement to be effective as of the Effective Date. OWNER: City of Sanger, Texas By: SANS: Sanger Area g Soc'et�y Name: �J• /S Title: To: Mayor and Council From: Mike Brice, City Manager Date: 4/30/2014 Re: CDBG Grant Award and Funding We received six bids on the Jones -Willow Sewer Line Project ranging from $691,668 to $429,540 (see attached bid tab). The Lowest Bidder has requested to withdraw his bid because he cannot complete the work in a timely manner. Staff recommends awarding the contract for construction to the next lowest bidder, Wildstone Construction. The original grant was for $275,000 in CDBG funds and $41,250 in matching funds from the City. The $41,250 was originally intended to be in kind" engineering services. Because we no longer have an engineer on staff, we have had to contract for engineering services in the amount of $56,700. We also did some additional testing for rock for $2500 to avoid an expensive change order later. Total expected cost to date is $499,750. Less the $275,000 grant leaves us with a cost of $224,750. Staff recommends expending funds from the waste water capital improvement fund to cover this expense. There is currently $373,970 in the WWCIP fund, leaving a balance of $149,220. 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O tD (O W m O : � A � � Hi 6A fA 69 fA bi Vi t9 fR d1 fR W iq f9: fA': C N w � O A m N m a 0 0 M 0 O N N N V � N � 1 00 00 W W v 0 0 d m < rn j v 0 0 J m � = 41 � SRO V fA {q n C N w m W ? m N N O) W W VI O m a m y s v � s a w� CD N cn �m N ` z ƒ / �, _== ,mw�= 2 2 ƒ/ 2\i\r 23 \2\2\ =r �Ec \\(\\\\\\\\{\Na k \{§ �§ / r ! ƒ9aa>\@9-------- §! / }0 }\E °~° 2 \ ƒ/ �E c )(( (k \(§ CD / r (A ! 29 < G® m~m < \ \CD / 0 CD \0C_ 0C o CD \30_0 \ kECD \ CD {� 2/\�\\/\ \�\ \\CD ( !G t0 ig-/,_;0 [0CD j �E )\ \g§7}$j& _CD ` \/ ® ( - (\ f® �_ ({{ 3 2 .\ \%E(»®°` 3w _ ( (D @ L \ / \000. j \ j) 71 CD (D x ) 0 2](a 2CD 0 } \- p< _ L 0 CD u5c } )[ 4& 7 - _ CD = 0 j \ _\ 2 /�Je( & [ CD o !CD ® Z5, CD CD CD ) - - .\ ( f \ CD N \ \\ \� \ \ \ \� CD ( CD CD CD \0 k \ / - J / )\ CD �\ \ x �\ �\ K) Fmk \\\ )§� ;2 Chris Felan Vice President Rates & Reoulatory Affairs April 25, 2014 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 May 2014 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 1862 Dailas, TX 75240 P 214-303-9106 F 214-206-2126 Christopher. Felan@atmosenergy.com h O z 0 o U U Qz a0W 0�000 Up W m Q� W W ~ z W Z W W W W ZI O Q U) W N Q a m m m m V- cG O o ) (n M M M M t(j OJ OJ O EA fH EA E9 c I- _ F v v m m F m o� m m K � U U U U U U o h0 f` (00t0 M O O N N 2 M d) �o a o `o» Ld v U � a U v m K `o U N m o U U U U N O O W C6 00l (3 n N N m MLr N M M 06 (3) C OM 0 N 6 r fA fA U � Eri Eli U o. 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