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03/03/2008-CC-Agenda Packet-RegularAGENDA CITY COUNCIL MONDAY, MARCH 392008 7:00 P.M. 201 BOLIVAR 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 that are brought up during this section. CONSENT AGENDA 3. a) Approve Minutes February 19, 2008 -Work Session February 19, 2008 - City Council b) Disbursements c) Authorize Staff to Act as the General Contractor and Begin Remodeling of the New City Hall Building Utilizing the Designated 2007 Bond Funds d) Authorize Staff to Solicit Requests for Qualifications for Architectural Engineering Services to Remodel the old Electric Plant Building e) Authorize Staff to Solicit Requests for Qualifications for the Construction of a Warehouse Utilizing the Design -Build Method as Outlined in Section 271.119 f) Approve Resolution #R03-06-08 -Show Cause Determining the Current Rates of Atmos Energy Corporation g) Approve Resolution # R03-07-08 -Settlement Agreement Between Atmos Energy Corporation, Mid -Tex Division and Atmos Texas Municipalities h) Approve Ordinance #03-06-08 -The National Incident Management System (NIMS) i) Approve Appointment of Members to the Park Board, Planning and Zoning Board, 4B Board and the Sanger Cultural Education Facilities Finance Corporation 4. Consider any Items Removed from Consent Agenda. 5. Consider and Possible Action for Council to Approve the Mayor not Signing the Official Minutes of Record. 6. Information Items: Legislative Update 7. Adjournment. I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on the bulletin board, at the City Hall of the City of Sanger, Texas, a place convenient and readily accessible to the general public at all times, and said Notice was posted on the following date and time: in. and shall remain posted until meeting is adjourned. WL Rosalie Chavez, City Secrebkry City of Sanger, Texas This notice was removed from the by 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) 45&7930 for further information. MINUTES: City Council Meeting -Workshop February 19, 2008 PRESENT: Mayor Joe Higgs, Councilman Robert Patton, Councilman Glenn Ervin, Councilman Andy Garza, Councilman Thomas Muir, Councilman Mike Walker OTHERS PRESENT: City Manager Mike Brice, City Secretary/Asst. City Manager Rose Chavez 1. Call Meeting to Order. Mayor Higgs called meeting to order. 2. Overview of Items on Regular Agenda. 3. Overview of Audit. Carl Deaton, Certified Public Accountant addressed City Council with a review of the 2006/2007 audit. He discussed the comparative statements of revenues versus expenses in detail for the Enterprise Fund and General Fund. The overall net change in assets in the Enterprise Fund was $794,000 which was down significantly from the previous year. The revenues were down considerably from the previous year in the electric, water and sewer sales. Mr. Deaton continued discussing the assets and liabilities in detail. Mr. Deaton indicated that 4A and 4B had significant increases in their fund balances. He advised that most of their monies are in investments at the bank. In the General Fund there were bond revenues that show up as an increase in the Fund Balance, and as the funds are spent, it reduces the fund balances and shows up in the Capital Outlay. There are also restricted funds that are earmarked for bond payments. He expressed a concern that after all these restricted funds are considered in the fund balance, the portion that is not designated is $16,000. On September 2006 that number was $101,000. The General Fund unrestricted Fund Balance in this year's audit has taken a big drop in comparison to the previous year. Mr. Deaton continued with summary totals of revenue and the expenditure activity by department in the General Fund in comparison to the budget. It was followed by a review of the long-term debt, both in the General Fund and Enterprise Fund and Capital Assets. Mr. Deaton finalized his audit report by addressing his management letter. He emphasized that the city is losing too many utility dollars to bad debts and feels deposits are too low. He also commented on the Electric Department Inventory and advised he has visited with Mike Prater and has given him some direction on what needs to be done to get this under control. The final comment was that the minutes needed to be signed by the Mayor after approved by Council. City Manager advised that this morning the Mayor came in and officially signed all the minutes. Councilman Muir inquired on the health of the City funds. Mr. Deaton indicated that health -wise the General Fund is not in good shape and the reserves are not there. This needs to be a priority and the City needs to work toward three months of unrestricted reserves. The reason for this is due to the periods of low cash flows. He hopes that in the budget this year we can budget an increase to stop the decline. This is important and if it ever gets in the negative it impacts future bond ratings. City Manager emphasized that last year the revenues were not there in the Enterprise Fund and it impacted the General Fund. The Enterprise Fund supports the General Fund and last year the monies were not there. The General Fund needs to become less dependent on the Enterprise Fund. The process will be difficult, but needs to be done. Discussion continued with the general health issues of the funds, the need to generate more revenue without going into more debt. City Manger commented and thanked Carl for an excellent job with this audit. He was thorough and provided feedback on how we can do things better. 4. Discussion on the Metal Building Ordinance, City Manager advised there have been two issues that affect two ordinances Section 3.171 use of Metal Building Restricted," and Section 34 "Accessory Building Regulations." The Methodist Church wants to move in a portable building that is in B3 zoning which requires brick. This restricts the Church from moving in the portable building. The other issue is the Pilgrim's Way Church and their request is to move a portable building for a classroom fellowship hall. The Church is in the required zoning district. The concern with the current ordinance is that it does not address how many portable buildings can be placed on a site. City Manager advised there are two issues that he needs input from Council. Do they want to limit how many portable buildings can be placed on a site and how does Council want to do this? Discussion continued on what needs to be allowed. The number of buildings and the size of the buildings were discussed. All the building, fire codes and ADA requirements have to be met. City Manager emphasized that he needs Council input prior to bringing an ordinance. In the matter concerning the Methodist Church he can bring an ordinance to modify Section 34 to address specifically buildings for churches and give them an exemption for the masonry requirement. If the Council does not want to do this, then the Church must ask for rezoning for residential. This would be more restrictive on the property if it ever changed from its current use. Discussion continued on now this would impact the neighborhood. City Manager advised he will prepare the language on both Sections and he will have it on another work session for their review. 5. Discussion on Sanger ISD Foundation Banquet. City Manager advised that the Education Foundation Banquet has asked if the City would consider buying a table for $750.00. He does not have a problem and advised this is not illegal or unethical. He requested an opinion from Council on the matter. Council felt that it would be a great gesture; however, the perception that the public might have by doing this was not what they wanted. Council expressed they can individually pay for attending the banquet. City Manager advised that the meeting with the school boarad on Monday at 6:00 p.m. He will be making a presentation on the Comprehensive Plan and the Tomlin Development, 6. Questions from the Council. Mayor Higgs inquired on the budget and how will we get unrestricted funds in the General Fund. City Manager advised that we have started to work on that and currently we have a fund started that has a balance of about $10,000. He advised that he has discussed this with Rose and if the City is experiencing a good revenue year then they will shift excess revenues to that account. Councilman Walker asked if we will be addressing increasing deposits for the utilities. City Manager indicated that he will be bringing them information on this item and will schedule it in a worksession for discussion. 7. Adjournment. Mayor adjourned the meeting. MINUTES: City Council Meeting February 19, 2008 PRESENT: Mayor Joe Higgs, Councilman Robert Patton, Councilman Glenn Ervin, Councilman Andy Garza, Councilman Thomas Muir, Councilman Mike Walker OTHERS PRESENT: City Manager Mike Brice, City Secretary/Asst. City Manager Rose Chavez 1. Call Meeting to Order, Invocation, Pledge of Allegiance. Mayor called meeting to order, Councilman Garza led the invocation, followed by Councilman Ervin 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 that are brought up during this section. None CONSENT AGENDA 3. a) Approve Minutes February 4, 2008 - City Council b) Disbursements c) Approve Agreement for Assignment of Responsibility for Complying with NERC Reliability Standards Between Brazos Electric Power Cooperative Motion was made by Councilman Ervin to approve Consent Agenda as presented. Seconded by Councilman Garza. Motion carried unanimously. 4. Consider any Items Removed from Consent Agenda. None 5. Consider and Possible Action on Approving Audit for Fiscal Year End 2006/2007. Motion was made by Councilman Patton to approve audit for fiscal year 2006/2007 as presented by City Auditor, Carl Deaton. Seconded by Councilman Garza. Motion carried unanimously. 6. Consider and Possible Action on a Preliminary Plat of Lots 1-3, Block A -Habitat for Humanity Subdivision. Property is Located on Railroad Avenue. Councilman Patton had some questions regarding the Preliminary Plat. He asked the City Manager to clarify some of the issues concerning this plat. He understands Council is approving a plat that was not approved by the Planning and Zoning Commission. There were some issues concerning the plat going from four to three lots. There were also some issues with the garages and the possibility of carports. City Manager explained this was the same property and the plat was corrected to three lots. The first time it was submitted it did not meet the minimum requirements. There was also an issue concerning the garage and a possible exemption on the masonry requirements. City Manager advised there were three different Planning and Zoning meetings that were scheduled and staff could not get a quorum on two of the meetings. When they tried to schedule a third meeting, the board members still could not meet. The State Law requires that after thirty days and Planning and Zoning has still not taken action on a Plat it is automatically approved. Councilman Ervin inquired on the masonry requirement. He asked if the City was waiving the brick requirements. He thought the City had required this on the other homes they had built. Rob Woods, City Engineer advised the other Habitat homes on Railroad Avenue are bricked and these homes will also be bricked. Discussion continued concerning the homes and the garages. Councilman Walker emphasized this is the Preliminary Plat and not the plans. Motion was made by Councilman Ervin to approve the Preliminary Plat of Lots 1-3 Block A - Habitat for Humanity Subdivision. Seconded by Councilman Garza. Motion carried unanimously. 7. Consider and Possible Action on a Final Plat of Lots 1-3, Block A -Habitat for Humanity Subdivision. Property is Located on Railroad Avenue. Motion was made by Councilman Ervin to approve Final Plat of Lots 1-3, Block A - Habitat for Humanity Subdivision. Seconded by Councilman Garza. Motion carried unanimously. 8. Information Items: a) City of Sanger Investment Report b) Monthly Financial Statement as of January 31, 2008 c) Library Monthly Report d) Chamber Investment Report 9, Adjournment. Mayor declared the meeting adjourned. 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 1 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: N/A NON -DEPARTMENTAL BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VL R NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-14800 BRYAN MCDUFFIE I-200802250560 001-00-4616 SECURITY FEES WARRANT ROUND UP 000000 480.00 99-15100 JOSH BISHOP I-200802250552 001-00-4616 SECURITY FEES WARRANT ROUND UP 000000 480.00 DEPARTMENT NON -DEPARTMENTAL TOTAL: 960.00 -------------................. --------------------......... --------------......... ---------........--------------------------------- 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 2 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 10 MAYOR & CITY COUNCIL BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VL t NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-08770 CPI OFFICE PRODUCTS I-1920349 & 1920831 001-10-5210 OFFICE SUPPLI CLASP ENVELOPES/LABEL TAP 000000 30.72 DEPARTMENT 10 MAYOR & CITY COUNCIL TOTAL: 30.72 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 3 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 15 ADMINISTRATION BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET Vt. jR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-00450 SUPER SAVE I-200802250566 001-15-5215 FOOD COFFEE & CREAMER 000000. 5.98 99-01920 NICHOLS, JACKSON, DILLA I-10800336 001-15-5425 LEGAL SERVICE LEGAL SERVICE-NICHOLS JAC 000000 465.00 99-02170 REINERT PAPER & CHEMICA I-200802250549 001-15-5245 JANITORIAL SU CLEANING SUPPLIES 000000 14.45 99-02490 EMBARQ PHONE SERVIC I-200802250555 001'�15-5510 TELEPHONE SER PHONES & FAXES 000000 170.02 99-06300 POSTMASTER I-200802250563 001-15-5220 POSTAGE/BOX R lYR BOX RENTAL 1729 000000 150.00 99-06490 DENTON REGIONAL MEDICAL I-200802130524 001-15-5440 MEDICAL SERVI PRE EMPLOYMENT 000000 54.00 99-08770 CPI OFFICE PRODUCTS I-1920349 & 1920831 001-15-5210 OFFICE SUPPLI PORT, EASEL/PAPER/TAPE 000000 127.46 99-08880 COOPER'S COPIES I-78574 001-15-5210 OFFICE SUPPLI ANNOUCEMENT CARDS 000000 70.23 99-12210 TEDC I-200802250569 001-15-5235 DUES AND REGI REG FOR BOND WORKSHOP 000000 100.00 99-17330 INTERACTIVE COMPUTER DE I-62681 & 62944 001-15-5420 CONTRACTUAL S FINAL INSTALLMENT:PO SYST 000000 1,661.25 99-18190 DEPARTMENT OF INFORMATI I-200802250554 001-15-5510 TELEPHONE SER LONG DISTANCE 000000 25.69 DEPARTMENT 15 ADMINISTRATION TOTAL: 2,844.08 --------.......... ----......... -------------------...... ------.......--------------------------------------------------------------- 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 4 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 18 ENGINEERING BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VE. a NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-02170 REINERT PAPER & CHEMICA I-200802250549 001-18-5245 JANITORIAL SU CLEANING SUPPLIES 000000 14.45 99-02490 EMBARQ PHONE SERVIC I-200802250555 001-18-5510 TELEPHONE SER PHONES & FAXES 000000 18.87 DEPARTMENT 18 ENGINEERING TOTAL: f, 33.32 r. . 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 5 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 20 POLICE BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VC .R NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-02170 REINERT PAPER & CHEMICA I-200802250549 001-20-5245 JANITORIAL SU CLEANING SUPPLIES 000000 28995 99-02490 EMBARQ PHONE SERVIC I-200802250555 001-20-5510 TELEPHONE SER PHONES & FAXES 000000 127,67 99-08770 CPI OFFICE PRODUCTS I-192468-0 001-20-5210 OFFICE SUPPLI INK CART./COLOR INK CART. 000000 86.10 I-192468-0 001-20-5210 OFFICE SUPPLI INK CART./COLOR INK CART. 000000 84.54 99-18190 DEPARTMENT OF INFORMATI I-200802250554 001-20-5510 TELEPHONE SER LONG DISTANCE 000000 17.49 99-18730 MCDORMAN SIGNS & ADVERT I-1366 001-20-5260 SAFETY EQUIPM LETTERING FOR 2008 CAR 000000 810.00 99-18760 MYRICKS INDIAN CAR WASH I-200802250561 001-20-5325 R & M MOTOR V 50 CAR WASH CODES 000000 250.00 DEPARTMENT 20 POLICE --------------------------------------- TOTAL: 1,409.75 ------------------------- 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER 'PAGE: 6 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 24 FIRE DEPARTMENT BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET Vl a NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-00640 COMMERCIAL SERVICES I-200802250550 001-24-5420 CONTRACTUAL S ICE MACHINE RENTAL 000000 100.00 99-02490 EMBARQ PHONE SERVIC I-200802250555 001-24-SS10 TELEPHONE SER PHONES & FAXES 000000 54.29 99-10990 BEARDS STORAGES I-200802250551 001-24-5235 DUES & REGIST STORAGE FOR SAFETY HOUSE 000000 600.00 99-11900 TARRANT COUNTY COLLEGE I-200802250567 001-24-5235 DUES & REGIST SCHOOL TUITION FIREFIGHTE 000000 1,314.00 DEPARTMENT 24 FIRE DEPARTMENT TOTAL: 2,068.29 ---------------.......... ------------------------....... ---........ -----...... --------...... 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 7 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 25 AMBULANCE BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET Vi X NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-05600 MOORE MEDICAL CORP. I-80769600/87069014 001-25-5440 MEDICAL SERVI MEDICAL SUPPLIES 000000 659.06 99-10400 NCTTRAC I-200802250562 001-25-5235 99-16240 SCHAD & PULTE I-170363 & 169765 001-25-5440 I-170363 & 169765 001-25-5440 I-170517 001-25-5440 --------------------------------------------- DUES & REGI5T AMBULANCE DUES MEDICAL SERVI OXYGEN CYLINDERS MEDICAL SERVI OXYGEN CYLINDERS MEDICAL SERVI OXYGEN 000000 20.00 000000 26.00 000000 40.00 000000 10.00 DEPARTMENT 25 AMBULANCE TOTAL: 755.06 ----------------------------------------------------------------------------- 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 8 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 26 MUNICIPAL COURT BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET V� �R NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-02170 REINERT PAPER & CHEMICA I-200802250549 001-26-5245 BLD.& JANITOR CLEANING SUPPLIES 000000 28.40 99-02490 EMBARQ PHONE SERVZC I-200802250555 001-26-5510 TELEPHONE SER PHONES & FAXES 000000 79.58 99-03710 DENTON CO SHERIFF'S DEP I-200802250553 001-26-5379 JAIL FEES LAYOUT FEES: T. ISBELL 000000 40.00 99-18190 DEPARTMENT OF INFORMATI I-200802250554 001-26-5510 TELEPHONE SER LONG DISTANCE 000000 2.97 DEPARTMENT 26 MUNICIPAL COURT TOTAL: 150.95 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 9 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 - - - � _ FUND 001 GENERAL FUND DEPARTMENT: 28 ENFORCEMENT/INSPECTION BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET Vt. .iR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION .. '� ,CHECK#. AMOUNT 99-02170 REINERT PAPER & CHEMICA I-200802250549 001-28-5245 JANITORIAL SU CLEANING SUPPLIES 000000 28.95 99-02490 EMBARQ PHONE SERVIC I-200802250555 001-28-5510 TELEPHONE PHONES & FAXES 000000 37.73 99-18190 DEPARTMENT OF INFORMATI I-200802250554 001-28-5510 TELEPHONE LONG DISTANCE 000000 4.62 DEPARTMENT 28 ENFORCEMENT/INSPECTION TOTAL: 71.30 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 10 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 30 STREETS BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET V� jR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-00640 COMMERCIAL SERVICES I-200802250550 001-30-5420 CONTRACTUAL S ICE MACHINE RENTAL 000000 50.00 99-02170 REINERT PAPER & CHEMICA I-200802250549 001-30-5245 JANITORIAL SU CLEANING SUPPLIES 000000 28.95 s 99-02490 EMBARQ PHONE SERVIC I-200802250555 001-30-5510 TELEPHONE SER PHONES & FAXES 000000 125.61 99-18190 DEPARTMENT OF INFORMATI I-200802250554 001-30-5510 TELEPHONE SER LONG DISTANCE 000000 2.64 DEPARTMENT 30 STREETS TOTAL: } 207.20 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 11 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 32 PARKS BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET V, �R NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-01390 KEEP TEXAS BEAUTIFUL I-200802250559 001-32-5221 BEAUTIFICATIO 2008 AFFILIATE DUES 000000 75.00 99-02170 REINERT PAPER & CHEMICA I-200802250549 001-32-5245 JANITORIAL SU CLEANING SUPPLIES 000000 28.95 99-13790 NANA'S I-352678/352677 001-32-5221 BEAUTIFICATIO 4 GIFT CARDS/LUNCH 000000 40.00 I-352678/352677 001-32-5221 BEAUTIFICATIO 4 GIFT CARDS/LUNCH 000000 47.50 DEPARTMENT 32 PARKS TOTAL: 191.45 -----............... -------........ -........ --------------....... -------..........-------------------------------------------------- 2/25/2008 11:29 AM PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 34 POOL BUDGET TO USE: CB -CURRENT BUDGET V� -)R NAME ITEM # 99-02490 EMBARQ PHONE SERVIC I-200802250555 REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 12 BANK: SB99 G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 001-34-5510 TELEPHONE SER PHONES & FAXES 000000 53.18 DEPARTMENT 34 POOL TOTAL: -------------------------- 53.18 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 13 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 36 VEHICLE MAINTENANCE BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET V� iR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-02490 EMBARQ PHONE SERVIC I-200802250535 001-36-5510 TELEPHONE SER PHONES & FAXES 000000 42.22 99-18190 DEPARTMENT OF INFORMATI I-200802250554 001-36-5510 TELEPHONE SER LONG DISTANCE 000000 3.46 DEPARTMENT 36 VEHICLE MAINTENANCE TOTAL: 45.68 .......... ------..................... ----------........... --------......... ---------......... -----.......--------------------------- 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 14 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 40 SULLIVAN CENTER BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VL �R NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-02170 REINERT PAPER G CHEMICA I-200802250549 001-40-5245 JANITORIAL & CLEANING SUPPLIES 000000 28.95 99-02490 EMBARQ PHONE SERVIC I-200802250555 001-40-5510 TELEPHONE SER PHONES & FAXES 000000 37.89 DEPARTMENT 90 SULLIVAN CENTER TOTAL: ----------------------------------------------------------------------------------------------------------- 66.84 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 15 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 42 LIBRARY BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET Vt. .iR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-02490 EMBARQ PHONE SERVIC I-200802250555 001-42-5510 TELEPHONE SER PHONES & FAXES 000000 75.78 99-04850 MICRO MARKETING ASSOC.L I-235134 I-235134 I-235134 I-235134 I-235134 99-05050 THE PENVIORTHY COMPANY I-1430043-1 I-1430043-1 I-1430043-1 I-1430043-1 I-1430043-1 I-1430043-1 I-1430043-1 I-1430043-1 I-1430043-1 I-1430043-1 I-1430043-1 I-1430043-1 I-1430043-1 I-1430043-1 I-1430043-1 99-15250 SUDDENLINK I-200802250565 99-16540 GOLDEN TRIANGLE FIRE PR I-200802120520 001-42-6050 BOOKS AUDIO BOOK/4 BOOKS 000000 51.90 001-42-6050 BOOKS AUDIO BOOKS 000000 7,00 001-42-6050 BOOKS AUDIO BOOKS 000000 29.95 001-42-6050 BOOKS AUDIO BOOKS 000000 19.99 001-42-6050 BOOKS AUDIO BOOKS 000000 34.95 001-42-6050 BOOKS DISASTER DOG SEARCH 000000 18.95 001-42-6050 BOOKS NIGHT OF THE NEW MAGICIAN 000000 14,96 001-42-6050 BOOKS JUNIE B 000000 15.49 001-42-6050 BOOKS STAR WARS 000000 16.96 001-42-6050 BOOKS AGAINST THE EMPIRE 000000 16.96 001-42-6050 BOOKS CLARENCE THE COPY CAT 000000 18.96 001-42-6050 BOOKS DIGGER MAN 000000 18.96 001-42-6050 BOOKS FIX IT SAM 000000 16.96 001-42-6050 BOOKS GOOD MORNING DIGGER 000000 16.96 001-42-6050 BOOKS HOW THE MOON 000000 18.96 001-42-6050 BOOKS SERIOUS TROUBLE 000000 16.96 001-42-6050 BOOKS DORA HELPS DIEGO 000000 13.96 001-42-6050 BOOKS JUST SAY PLEASE 000000 13,96 001-42-6050 BOOKS LOVE IS IN THE AIR 000000 13.96 001-42-6050 BOOKS SHIPPING 000000 14,91 001-42-5420 CONTRACTUAL S INTERNET SE6iRVICE 001-42-5310 R & M BUILDIN YEARLY INSPECTION OF SPRK 99-18190 DEPARTMENT OF INFORMATI I-200802250554 001-42-5510 TELEPHONE SER LONG DISTANCE DEPARTMENT 42 LIBRARY VENDOR SET 001 GENERAL FUND 000000 000000 000000 TOTAL: --------------- TOTAL: 107,45 325.00 9,789.27 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 16 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 008 ENTERPRISE FUND DEPARTMENT: 10 Mayor and City Council BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET V't, NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-08770 CPI OFFICE PRODUCTS I-1920349 & 1920831 008-10-5210 OFFICE SUPPLI ENVELOPES & EASEL/LABEL T 000000 30.72 DEPARTMENT 10 Mayor and City Council TOTAL: 30.72 ------------------------------------------------------------------------------------------------------------------------------------ 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 17 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 008 ENTERPRISE FUND DEPARTMENT: 15 Administration BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET V�..._�R NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-00450 SUPER SAVE I-200802250566 008-15-5215 FOOD COFFEE & CREAMER 000000 5.98 99-01920 NICHOLS, JACKSON, DILLA I-10800336 008-15-5425 LEGAL SERVICE LEGAL SERVICE-NICHOLS JAC 000000 965.00 99-02170 REINERT PAPER & CHEMICA . I-200802250549 008-15-5245 JANITORIAL SU CLEANING SUPPLIES 000000 14.45 99-02490 EMBARQ PHONE SERVIC I-200802250555 008-15-5510 TELEPHONE SER PHONES & FAXES 000000 170.01 99-03970 TMCCP I-200802250570 008-15-5210 99-06300 POSTMASTER I-200802250563 008-15-5220 99-06990 DENTON REGIONAL MEDICAL I-200802130524 008-15-5440 99-08770 CPI OFFICE PRODUCTS I-1920349 & 1920831 008-15-5210 99-08880 COOPER'S COPIES I-78579 008-15-5210 99-12210 TEDC I-200802250569 99-17330 INTERACTIVE COMPUTER DE I-62681 & 62944 99-18190 DEPARTMENT OF INFORNATI I-200802250554 008-15-5235 008-15-5420 008-15-5510 OFFICE SUPPLI TX MUM. LA4J MANUAL 000000 31.50 POSTAGE/BOX R lYR BOX RENTAL 1729 000000 150.00 MEDICAL SERVI PRE EMPLOYMENT 000000 54.00 OFFICE SUPPLI ENVELOPES & EASEL/LABEL T 000000 127.46 OFFICE SUPPLI ANNOUCEMENT CARDS 000000 70.22 DUES G REGIST REG FOR BOND L^IORKSHOP 000000 100.00 CONTRACTUAL S FINAL INSTALLMENT:PO SYST 000000 1,661.25 TELEPHONE SER LONG DISTANCE 000000 25.69 DEPARTMENT 15 Administration TOTAL: 2,675.56 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 18 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 008 ENTERPRISE FUND DEPARTMENT: 18 ENGINEERING BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET Vh_ jR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-02170 REINERT PAPER & CHEMICA I-200802250549 008-18-5245 JANITORIAL SU CLEANING SUPPLIES 000000 14.45 99-02490 EMBARQ PHONE SERVIC I-200802250555 008-18-5510 TELEPHONE SER PHONES & FAXES 000000 18.86 DEPARTMENT 18 ENGINEERING TOTAL: 33.31 ------------------------------------------------------------------------------------------------------------ 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 19 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 008 ENTERPRISE FUND DEPARTMENT: 19 Data Processing BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET Vi R NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-00�10 DATA BUSINESS FORMS INC I-60265 008-19-5210 OFFICE SUPPLI PAID STAMP FOR COUNTER 000000 66.50 DEPARTMENT 19 Data Processing TOTAL: 66.50 ------.......... ---------------------------...... --------.......... -----......------------------------------------------- 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 20 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 008 ENTERPRISE FUND DEPARTMENT: 36 Vehicle Maintenance BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET Vh. �R NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-02490 EMBARQ PHONE SERVIC I-200802250555 008-36-5510 TELEPHONE SER PHONES & FAXES 000000 42.22 99-18190 DEPARTMENT OF INFORMATI I-200802250554 008-36-5510 TELEPHONE SER LONG DISTANCE 000000 3.46 DEPARTMENT 36 Vehicle Maintenance TOTAL: 45.68 ---------------------------------.............. ----------............. -------......... -------......---------------------- 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 21 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 008 ENTERPRISE FUND DEPARTMENT: 50 Water BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VL ,R NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT '.. 99-00640 COMMERCIAL SERVICES I-200802250550 008-50-5420 CONTRACTUAL S ICE MACHINE RENTAL 000000 50.00 99-02170 REINERT PAPER § CHEMICA I-200802250549 008-50-5245 JANITORIAL SU CLEANING SUPPLIES 000000 28.95 99-02490 EMBARQ PHONE SERVIC I-200802250555 008-50-5510 TELEPHONE SER PHONES & FAXES 000000 154.19 DEPARTMENT 50 Glater TOTAL: 233.14 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 22 PACKET: 01306 CC PACKET 03/09/08 VENDOR SET: 99 FUND 008 ENTERPRISE FUND DEPARTMENT: 54 47aste Viater Treatment BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VE. .t2 NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-02490 EMBARQ PHONE SERVIC I-200802250555 008-54-5510 TELEPHONE SER PHONES & FAXES 000000 169.00 99-18190 DEPARTMENT OF INFORMATI I-200802250554 008-54-5510 TELEPHONE SER LONG DISTANCE 000000 1.87 DEPARTMENT 54 Vlaste S9ater Treatment TOTAL: 170.87 ------------------------------------------------------------------------------------------------------------------------------------ 2/25/2008 11:29 AM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 23 PACKET: 01306 CC PACKET 03/04/08 VENDOR SET: 99 FUND 008 ENTERPRISE FUND DEPARTMENT: 58 Electric Department BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VL ,R NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99-00640 COMMERCIAL SERVICES I-200802250550 008-58-5420 CONTRACTUAL S ICE MACHINE RENTAL 000000 100.00 99-02170 REINERT PAPER & CHEMICA I-200802250549 008-58-5245 JANITORIAL SU CLEANING SUPPLIES 000000 28,95 99-02490 EMBARQ PHONE SERVIC I-200802250555 008-58-5510 TELEPHONE SER PHONES & FAXES 000000 184.34 99-02690 TECHLINE, INC. I-1436332-00 008-58-6020 IMPROVEMENTS M175 MED MH BULBS 000000 252.00 I-200802250568 008-58-5255 WEARING APPAR WORK BOOTS 000000 293.00 99-05350 TX EXCAVATION SAFETY SY I-08-0295 008-58-5420 CONTRACTUAL S MESSAGE FEES 000000 24.70 99-05510 IESI I-0003437676 008-58-5420 CONTRACTUAL S UTILITY ROAD DUMPSTER 000000 421,32 99-06930 TX ELECTRIC COOPERATIVE I-200802250571 008-58-5235 DUES & REGIST 2008 LOSS CONTROL SAFETY 000000 3,050.00 99-07750 HOME DEPOT/GECF I-200802250557 008-58-6020 IMPROVEMENTS LIGHT FIXTURES/BULBS/ 000000 60.86 99-18190 DEPARTMENT OF INFORMATI I-200802250554 008-58-5510 TELEPHONE SER LONG DISTANCE 000000 8.87 DEPARTMENT 58 Electric Department TOTAL: 41424,04 ------------------------------------------------------------------------------------------------------------------------------------ VENDOR SET 008 ENTERPRISE FUND TOTAL: 7,879.82 REPORT GRAND TOTAL: 17,664.09 COUNCIL AGENDA ITEM AGENDA TYPE ❑ Regular ❑ Special M Consent Reviewed by Finance ❑ Workshop ❑ Executive ❑ Public Hearing Reviewed by Legal ❑ Yes Not Applicable Yes Not Applicable Council Meeting Date: Submitted By: March 3, 2008 Tami for Mike Brice City Manager Reviewed/Approval Initials �❑ Date ,:.9 , ACTION REQUESTED: ❑ORDINANCE # ❑ RESOLUTION APPROVAL ❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS ❑ OTHER AGENDA CAPTION Authorize Staff to Act as the General Contractor and Begin Remodeling of the New City Hall Building Utilizing the Designated 2007 Bond Funds. FINANCIAL SUMMARY ❑N/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE ❑CI P ❑BUDGETED ❑NON -BUDGETED FISCAL YEAR: PRIOR YEAR CURRENT YEAR FUTURE YEAR(S) TOTALS Proposed Expenditure Amount Encumbered Amount BALANCE FUND(S) TO BE USED: General ❑$ Utility ❑ $ Special ❑ $ BACKGROUND/SUMMARY OF ITEM STAFF OPTIONS & RECOMMENDATION Request approval. List of Supporting Documents/Exhibits Attached: Memo Prior Action/Review by Council, Boards, Commissions or Other Agencies: To: Mayor and Council from: Mike Brice, City Manager Date: 2/26/2008 Re: City Hall Remodel I am requesting permission for staff to act as the general contractor on remodeling the building recently purchased for City offices at 502 Elm. As we have previously discussed, allowing us to act as the general contractor will save us the overhead expense of hiring a general contractor. We will still be required by State Statute to bid any portion of the work over $25,000. 1 do not foresee any portion of the work exceeding $25,000 except possibly the electrical. For other portions we will acquire at least two written quotes before engaging a sub -contractor. Thank you for your consideration of this matter. 1 COUNCIL AGENDA ITEM AGENDA TYPE ❑ Regular ❑ Special ❑ Consent Reviewed by Finance ❑ Workshop ❑ Executive ❑ Public Hearing Reviewed by Legal ❑ Yes ❑ Not Applicable ❑Yes E Not Applicable Council Meeting Date: Submitted By: March 3, 2008 Tami for Mike Brice City Manager Reviewed/Approval Initials Date ACTION REQUESTED: ❑ORDINANCE # ❑ RESOLUTION ® APPROVAL ❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS ❑ OTHER AGENDA CAPTION Authorize Staff to Solicit Requests for Qualifications for Architectural Engineering Services to Remodel the old Electric Plant Building. FINANCIAL SUMMARY ❑N/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE ❑CI P ❑BUDGETED ❑NON -BUDGETED FISCAL YEAR: PRIOR YEAR CURRENT YEAR FUTURE YEAR(S) TOTALS Proposed Expenditure Amount Encumbered Amount BALANCE FUND(S) TO BE USED: General ❑$ Utility ❑ $ Special ❑ $ BACKGROUND/SUMMARY OF ITEM STAFF OPTIONS & RECOMMENDATION Request approval. List of Supporting Documents/Exhibits Attached: Memo Prior Action/Review by Council, Boards, Commissions or Other Agencies: 7a: Mayor and Council Frame Mike Brice, City Manager ®tee 2i2z�zoos Re: New Warehouse I am requesting permission to solicit bids for the construction of a new warehouse facility. This facility will be located next to the electric department on Railroad Avenue. It will provide additional inside storage for both the electric department and the water department. This will be a design/build project meaning that the contractor will design and construct the building. Funds from the 2007 public works facilities bond will be used for this project. The estimated cost is approximately $750,000. Thank you for your consideration of this matter. 1 Ageh TEXAS COUNCIL AGENDA ITEM AGENDA TYPE ❑ Regular ❑ Special Z Consent Reviewed by Finance ❑ Workshop ❑ Executive El Public Hearing Reviewed by Legal ❑ Yes Not Applicable ❑Yes Not Applicable Council Meeting Date: Submitted By: March 3, 2008 Tami for Mike Brice City Manager Reviewed/Approval Initials Date o� ACTION REQUESTED: [']ORDINANCE # ❑ RESOLUTION ® APPROVAL ❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS ❑ OTHER AGENDA CAPTION Authorize Staff to Solicit Requests for Qualifications for the Construction of a Warehouse Utilizing the Design -Build Method Outlined in Section 271.119. FINANCIAL SUMMARY ❑N/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE ❑CI P ❑BUDGETED ❑NON -BUDGETED FISCAL YEAR: PRIOR YEAR CURRENT YEAR FUTURE YEAR(S) TOTALS Proposed Expenditure Amount Encumbered Amount BALANCE FUND(S) TO BE USED: General ❑$ Utility ❑ $ Special ❑ $ BACKGROUND/SUMMARY OF ITEM See attached memo. STAFF OPTIONS & RECOMMENDATION Request approval. List of Supporting Documents/Exhibits Attached: Memo. Prior Action/Review by Council, Boards, Commissions or Other Agencies: To: Mayor and Council From: Mike Brice, City Manager we. 2/26/2008 Re: RFQ For construction of a Warehouse We are requesting permission to solicit requests for qualifications (RFQ) for construction of a warehouse next to the existing electric warehouse and yard. We are requesting the ability to use the design -build process authorized under section 271,119 of the local government code. We believe that this will be the most cost effective method for construction of a pre-engineered metal building by eliminating the need for a third party architect and engineer. The building will be around 5000 to 6000 square feet and will include some office space. The building will be used by both the electric department and water department. It will be bricked on the street side even though brick is not required in that zoning district. 1 COUNCIL AGENDA ITEM AGENDA TYPE ❑ Regular ❑ Special IQ Consent Reviewed by Finance ❑ Workshop ❑ Executive ❑ Public Hearing Reviewed by Legal ❑ Yes ® Not Applicable ®Yes Not Applicable Council Meeting Date: Submitted By: March 3, 2008 Tami City Manager Reviewed/Approval Initials Date ACTION REQUESTED: ❑ORDINANCE # ® RESOLUTION #03-06-08 ❑ APPROVAL ❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS ❑ OTHER AGENDA CAPTION Approve Resolution #R03-06-08 — Show Cause Determining the Current Rates of Atmos Energy Corporation. FINANCIAL SUMMARY ❑N/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE ❑CI P ❑BUDGETED ❑NON -BUDGETED FISCAL YEAR: PRIOR YEAR CURRENT YEAR FUTURE YEAR(S) TOTALS Proposed Expenditure Amount Encumbered Amount BALANCE FUND(S) TO BE USED: General ❑$ Utility ❑ $ Special ❑ $ BACKGROUND/SUMMARY OF ITEM See attached information. STAFF OPTIONS & RECOMMENDATION List of Supporting Documents/Exhibits Attached: Resolution Prior Action/Review by Council, Boards, Commissions or Other Agencies: ATIVIOS BACKGROUND FOR SHOW CAUSE RESOLUTION REASON FOR SHOW CAUSE Atmos appealed the Council's denial of its request fora $52 million increase in rates to the Railroad Commission of Texas. The appeal was consolidated with GUD Docket No. 9762. While at the Commission, ATM and Atmos were able to work out a settlement of their differences. Part of the Settlement included matters not appropriate to the jurisdiction of the Railroad Commission, like the agreement to allow ATM Cities to increase the municipal franchise compensation rate to 5% of gross receipts. Also, by continuing with the Settlement at the Commission, it was felt by legal counsel for ATM that there was some risk that the delicate balance of costs and benefits resulting from the Settlement might be undone. For these reasons, it was felt that it is prudent to re-establish jurisdiction before each ATM municipality. Jurisdiction can be re-established through the adoption of the Show Cause Resolution, RECOMMENDATION ATM recommends adoption of the Show Cause Resolution so that the City may re- establish jurisdiction over the rates of Atmos Energy Corp., Mid -Tex Division in order to be able to consider the Settlement Agreement which is before the Council later in this agenda. 1 RESOLUTION # R03-06-08 A RESOLUTION OF THE CITY OF SANGER DETERMINING THE CURRENT RATES OF THE ATMOS ENERGY CORPORATION, MID-TEX DIVISION TO BE UNJUST AND UNREASONABLE; PROVIDING FOR A REASONABLE NOTICE AND HEARING; FINDING THAT THE MEETING COMPLIED WITH THE OPEN MEETINGS ACT; AND DECLARING AN EFFECTIVE DATE WHEREAS, Atmos Energy Corporation —Mid-Tex Division ("Atmos") filed a Statement of Intent with the City of Sanger, Texas ("City") on September 20, 2007 to increase its system -wide, annual revenue requirement, by approximately $51.9 million; and WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act ("GURA") and under § 103.001 of GURA has exclusive original jurisdiction over Atmos' rates, operations, and services of a gas utility within the municipality; and WHEREAS, the City has, by previous ordinance or resolution, denied the requested rate increase, authorized participation in a coalition of cities known as Atmos Texas Municipalities ("ATM") and authorized the hiring of lawyers and rate experts; and WHEREAS, Atmos has appealed the previous ordinance or resolution to the Raihoad Commission of Texas, which has docketed the appeal along with other appeals as Gas Utilities Docket No. 9762; and WHEREAS, ATM has conducted extensive discovery upon Atmos and has engaged in extensive negotiations regarding the appropriate rates and rate structure for Atnlos; and WHEREAS, Atmos and ATM have entered into a settlement agreement resolving all disputes regarding the appropriate rates, terms and conditions for Atmos; and WHEREAS, Atmos and ATM have determined that the best method to implement such settlement agreement is to have it approved by each ATM city; and WHEREAS, in order for City to examine the settlement agreement, it must reestablish its original jurisdiction over the rates of Atmos; and WHEREAS, the Gas Utilities Regulatory Act authorizes municipalities exercising original jurisdiction over gas utilities to issue a Show Cause as to their rates, terms and conditions, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS THAT. Section 1. That the statements set out in the preamble to this resolution are hereby in all things approved and adopted. Section 2. Pursuant to Utilities Code Section 104.151, the City finds that the existing rates, terms and conditions of Atmos are unreasonable and determines that Atmos should Show Cause why such rates, terms and conditions should not be changed. Section 3. In light of the fact that a settlement agreement has been reached between Atmos and ATM resolving all issues, it is reasonable to proceed to a hearing on the settlement agreement without additional notice to Atmos and it is reasonable to hold such hearing at the same city council meeting as the meeting at which this resolution is adopted. Section 4. 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 5. This resolution shall become effective from and after its passage. PASSED AND APPROVED this day of March 2008. Joe Higgs, Mayor ATTEST: Rosalie Chavez, City Secretary COUNCIL AGENDA ITEM AGENDA TYPE ❑ Regular ❑ Special Consent Reviewed by Finance ❑ Workshop ❑ Executive El Public Hearing Reviewed by Legal ❑ Yes Not Applicable Yes ❑Not Applicable Council Meeting Date: Submitted By. March 3, 2008 Tami City Manager Reviewed/Approval Initials Date ACTION REQUESTED: ❑ORDINANCE # ® RESOLUTION #03-07-08 ❑ APPROVAL ❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS ❑ OTHER AGENDA CAPTION Approve Resolution #R03-07-08 — Settlement Agreement Between Atmos Energy Corporation, Mid - Tex Division and Atmos Texas Municipalities. FINANCIAL SUMMARY ❑N/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE ❑CI P ❑BUDGETED ❑NON -BUDGETED FISCAL YEAR: PRIOR YEAR CURRENT YEAR FUTURE YEAR(S) TOTALS Proposed Expenditure Amount Encumbered Amount BALANCE FUND(S) TO BE USED: General ❑$ Utility ❑ $ Special ❑ $ BACKGROUND/SUMMARY OF ITEM See attached information. STAFF OPTIONS & RECOMMENDATION List of Supporting Documents/Exhibits Attached: Resolution Prior Action/Review by Council, Boards, Commissions or Other Agencies: BACKGROUND ON SETTLEMENT AGREEMENT RESOLUTION REDUCTION IN RATE REQUEST BY 80% Atmos requested a $52 million rate increase. The settlement provides for a $10 million increase, this is more than an 80% reduction in the requested increase in rates. Under the settlement, residential rates will increase by 20 cents per month. Atmos Requested Rates Settlement Agreement Current Monthly Bill Atmos Req Monthly Bill Change Settlement Monthly Bill Chanize $ % $ % Residential (using 4.4 Mcf per month) $54.99 $57.07 $2.08 3.77% $55.19 $0.20 0.37% Commercial (using 30 Mcf per month) $296015 $305636 $9.21 3.11% $299.60 $3.48 1.18% GRIP IS ELIMINATED Atmos has been making filings annually under its Gas Reliability Infrastructure Program ("GRIP"). The agreement calls for the end of GRIP filings. It will be replaced by a Rate Review Mechanism ("RRM"). The RRM will permit participation by ATM to review each expenditure. This was not possible under the GRIP filings. Under GRIP, cities did not get to review expenditures for A easonableness or prudence. INCREASE IN FRANCHISE COMPENSATION The Settlement also provides that as a member of ATM, the city council may increase franchise compensation up to 5% of gross revenue. ATM will provide the forms for making the request to increase franchise compensation. ATMOS TO DISCUSS PIPELINE PROJECTS QUARTERLY Atmos will meet quarterly with representatives of ATM to discuss pipeline projects and other capital expenditures so that ATM Cities can have dialogue about such investments. CONSERVATION PROJECT INITIATED The Settlement calls for a conservation program to be initiated which is aimed at modest income customers. ATM will have input in developing the program. To start with, ratepayers and shareholders will contribute $1 million to the program. FUNDS ARE PROVIDED FOR RATE REVIEWS The Settlement provides funds for consultants to review the changes in rates sought by Atmos. Such finding was not available to review the annual GRIP filings. CUSTOMER CHARGE REDUCTIONS On October 1, 2008, the residential customer charge is to be reduced from $10.69 to $7.00 and the commercial customer charge is to be reduced from $20.28 to $13.50. These changes promote conservation. They provide an incentive to use less gas. In general, low-income customers and low use small businesses will benefit from the customer charge reductions. IMPROVEMENTS IN RATE REVIEW MECHANISM ("RRM") ATM began its negotiations with Atmos by focusing upon the RRM Rider, which had been agreed to by another group of cities. Over 60% of the R.RM Rider was redrafted. The changes, which were made to the Rider by ATM Cities, should result in significantly reduced rate requests from what Atmos could have requested under the prior version of the RRM. EXPENSES REMOVED FROM RATE FILINGS Atmos has agreed to remove all of the following types of expenses from any RRM filing. • Amounts incurred for travel, meals or entertainment of employee spouses. • Amounts for air travel that exceed published commercial coach airfares. • Amounts incurred for hotel rooms exceeding $250 per night inclusive of taxes and fees assessed on such rooms. • Amounts for alcoholic beverages. • Amounts paid for admission to entertainment, sports, art or cultural events, and all event sponsorship costs. • Amounts for social club dues or fees. RECOMMENDATION ATM recommends that the Settlement Agreement be adopted. There was a serious risk that the ultimate increase to be awarded by the Railroad Commission would be considerably higher than $10 million. Taking into consideration the benefits set forth above, the Settlement Agreement with the attached tariffs and riders is in the public interest. 3 RESOLUTION #R0347-08 A RESOLUTION OF THE OF THE CITY OF SANGER APPROVING A SETTLEMENT AGREEMENT BETWEEN ATMOS ENERGY CORPORATION, MID-TEX DIVISION AND ATMOS TEXAS MUNICIPALITIES; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING RATE ADJUSTMENTS CONSISTENT WITH THE SETTLEMENT AGREEEMENT; FINDING THE RATES TO BE SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; FINDING THAT THE MEETING COMPLIED WITH THE OPEN MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL WHEREAS, the City of Sanger ("City") is a regulatory authority under the Gas Utility Regulatory Act ("GURA") and under § 103.001 of GURA has exclusive original jurisdiction over Atmos Energy Corporation — Mid -Tex Division ("Atmos") rates, operations, and services of a gas utility within the municipality; and WHEREAS, the City has participated in prior cases regarding Atmos as a part of a coalition of cities known as the Atmos Texas Municipalities ("ATM"), including Railroad Commission Gas Utilities ("GUD") Docket No. 9400, numerous filings by Atmos pursuant to Section 104.301 of GURA, and GUD Docket No. 96709 and WHEREAS, ("Atmos") filed a Statement of Intent with the City on or about September 20, 2007 to increase its system -wide, annual revenue requirement, by approximately $51.9 million; and WHEREAS, the City has, by previous ordinance or resolution, denied the requested rate increase, authorized participation in ATM and authorized the hiring of lawyers and rate experts; and WHEREAS, Atmos has appealed the previous ordinance or resolution to the Railroad Commission of Texas, which has docketed the appeal along with other appeals as GUD No. 9762; and WHEREAS, ATM has conducted extensive discovery upon Atmos and has engaged in extensive negotiations regarding the appropriate rates and rate structure for Atmos; and WHEREAS, Atmos and ATM have entered into a Settlement Agreement resolving all disputes regarding the appropriate rates, terms and conditions for Atmos; and WHEREAS, Atmos and ATM have determined that the best method to implement such settlement agreement is to have it approved by each ATM city; and WHEREAS, in order for City to examine the Settlement Agreement, it has reestablished its original jurisdiction over the rates of Atmos by issuing a Show Cause against Atmos; and WHEREAS, the City has given reasonable notice to Atmos regarding the consideration of the Settlement Agreement and WHEREAS, the Settlement Agreement will resolve several previously -litigated cases and will resolve all issues currently pending before the Railroad Commission in GUD No. 9762, as well as issues relating to franchise agreements with Atmos; and WHEREAS, the Settlement Agreement will result in Atmos receiving a $10 million system -wide rate increase, which is significantly smaller than the $51.9 million sought by Atmos, and WHEREAS, the Settlement Agreement creates an experimental and expedited rate review process ,called the Rate Review Mechanism ("RRM") in lieu of the Section 104.301 filings, which will allow for a consideration of both increases and decreases in expenses and investments and will allow for increased participation by City regulators in future rate cases; Of WHEREAS, the RRM will also allow Atmos a greater opportunity to earn its authorized rate of return, but no more, by use of a "true -up" calculation contained wn the RRM tariff; and WHEREAS, the Settlement Agreement calls for a reduction in customer charges for residential and commercial customers and WHEREAS, the Settlement Agreement excludes specified expenses from recovery by Atmos; and WHEREAS, the Settlement Agreement contains a "most -favored -nations" clause that provides City with the benefit of any other RRM settlement or any other settlement of the issues related to the September 20, 2007 Statement of Intent or GUD No. 9672, under certain conditions; WHEREAS, the Settlement Agreement authorizes other changes in rates and tariffs that should enable Atmos to provide efficient service at reasonable rates and provides for the reimbursement of ATM expenses; and WHEREAS, the Settlement Agreement provides for quarterly meetings between Atmos and City representatives in order to improve communication and cooperation; and WHEREAS, the Settlement Agreement provides a mechanism for the City to amend or renew its franchise agreement with Atmos at 5% of Gross Revenues; and WHEREAS, the Settlement Agreement resolves numerous cases currently pending on appeal and provides for payment to ATM associated with such cases; and WHEREAS, the City desires to avoid the cost and uncertainty of litigating the cases at the Railroad Commission and the courts; and WHEREAS, the ATM lawyers as well as numerous representatives from the ATM Cities have negotiated with Atmos on several occasions; and WHEREAS,. the ATM lawyers have recommended the approval of the Settlement Agreement: and WHEREAS, the City has examined the Settlement Agreement and its attached tariffs, rates, terms and conditions; and WHEREAS, the Settlement Agreement as a whole is consistent with the public interest; and WHEREAS, the tariffs, rates, terms and conditions attached to the Settlement Agreement should be found to be just, reasonable and in the public interest. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANGER THAT: Section 1. That the statements set out in the preamble to this resolution are hereby in all things approved and adopted. Section 2. Pursuant to Utilities Code Section 104.151, the City finds that the existing rates, terms and conditions of Atmos are unreasonable and determines that such rates, terms and conditions should be changed. Section 3. The City Council finds that the Settlement Agreement, which is attached hereto and incorporated herein as Attachment A, is in the public interest and is hereby endorsed in all respects. Section 4. The City Council finds that the new tariffs, which are attached hereto and incorporated herein as Attachment B, are just and reasonable and are hereby adopted. Section 5. To the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Resolution, it is hereby repealed. Section 6. The meeting at which this resolution was approved was in all things conductA in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 7. This resolution shall become effective from and after its passage with rates authorized by the Attached Tariffs to be effective in accordance with the terms of the Settlement Agreement. Section 8. A copy of this Resolution shall be sent to Atmos Mid - Tex, care of Joe T. Christian, Director of Rates, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75204, and to Jim Boyle, Counsel to ATM, Herrera and Boyle, PLLC, 860 Congress Avenue, Suite 1120, Austin, TX 78701. PASSED AND APPROVED this day of March 2008. Joe Higgs, Mayor ATTEST: Rosalie Chavez, City Secretary u�geh zTEXAS COUNCIL AGENDA ITEM AGENDA TYPE Irl Regular ❑ Special Consent Reviewed by Finance ❑ Workshop ❑ Executive ❑ Public Hearing Reviewed by Legal ❑ Yes Not Applicable ❑ Yes Not Applicable Council Meeting Date: Submitted By. March 3, 2008 Tami Taber City Manager Reviewed/Approval Initials Date ACTION REQUESTED: ORDINANCE # 03-06-08 ❑RESOLUTION ❑APPROVAL ❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS ❑ OTHER AGENDA CAPTION Consider and Possible Action on Ordinance #03-06-08 — The National Incident Management System (NIMS). FINANCIAL SUMMARY ❑N/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE ❑CI P ❑BUDGETED ❑NON -BUDGETED FISCAL YEAR: PRIOR YEAR CURRENT YEAR FUTURE YEAR(S) TOTALS Proposed Expenditure Amount Encumbered Amount BALANCE FUND(S) TO BE USED: General ❑$ Utility ❑ $ Special ❑ $ BACKGROUND/SUMMARY OF ITEM The adoption of this ordinance is required as a pre -condition regarding the receipt of federal grants, contracts and activities for certain disaster and hazard conditions. STAFF OPTIONS & RECOMMENDATION Request approval. List of Supporting Documents/Exhibits Attached: Ordinance #03-06-08. Prior Action/Review by Council, Boards, Commissions or Other Agencies: ORDINANCE 03-06-08 AN ORDINANCE ADOPTING THE NATIONAL INCIDENT MANAGEMENT SYSTEM (NIMS) AS THE STANDARD FOR INCIDENT MANAGEMENT BY THE CITY OF SANGER, TEXAS WHEREAS, on February 28, 2003, the President issued Homeland Security Presidential Directive (HSPD) - 5 that directed the Department of Homeland Security, in cooperation with representatives of federal, state, and local government to develop a National Incident Management System (NIMS) to provide a consistent approach to the effective management of situations involving natural disasters, man-made disasters or terrorism; and WHEREAS, the final NIMS was released on March 1, 2004; and WHEREAS, the NIMS contains a practice model or the accomplishment of the significant responsibilities associated with prevention, preparedness, response, recovery, and mitigation of all major and national hazards situations; and WHEREAS, the HSPD - 5 requires that state and local governments adopt the NIMS by fiscal year 2005 as apre-condition to the receipt of federal grants, contracts and activities related to the management and preparedness for certain disaster and hazard situations; and WHEREAS, the City Council for the City of Sanger desires to adopt the NIMS as required by HSPD-5. DULY PASSED, APPROVED, AND ADOPTED, this the day of March 2008, by the City Council of the City of Sanger, Denton County, Texas. APPROVED: ,Ioe Higgs, Mayor ATTEST: Rosalie Chavez, City Secretary COUNCIL AGENDA ITEM AGENDA TYPE ❑ Regular ❑ Special ® Consent Reviewed by Finance ❑ Workshop ❑ Executive ❑ Public Hearing Reviewed by Legal ❑ Yes Not Applicable L1 Yes Not Applicable Council Meeting Date: Submitted By: March 3, 2008 Mike Brice City Manager Reviewed/Approval Initials Date ACTION REQUESTED: ❑ORDINANCE # ❑ RESOLUTION ® APPROVAL ❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS ❑ OTHER AGENDA CAPTION Approve Appointment of Members to the Park Board, Planning and Zoning Board, 4B Board and the Sanger Cultural Education Facilities Finance Corporation. FINANCIAL SUMMARY ❑N/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE ❑CI P ❑BUDGETED ❑NON -BUDGETED FISCAL YEAR: PRIOR YEAR CURRENT YEAR FUTURE YEAR(S) TOTALS Proposed Expenditure Amount Encumbered Amount BALANCE FUND(S) TO BE USED: General ❑$ Utility ❑ $ Special ❑ $ BACKGROUND/SUMMARY OF ITEM See attached memo and two applications. STAFF OPTIONS & RECOMMENDATION Recommend approval. List of Supporting Documents/Exhibits Attached: Memo. Prior Action/Review by Council, Boards, Commissions or Other Agencies: ,A Tao Mayor and Council From: Mike Brice, City Manager Date: 2/26/2008 I am submitting the following individuals for your consideration for appointment to several boards. Bob Koger to the Parks Board to complete the term of James Howard. His term will expire in 2009. Skip Lindholm to Planning and Zoning to complete the term of Paul Edelman. His term will expire in 2009. Jeff Springer to the 4B board to complete the term of John Springer. His term will expire in 2008 John Springer to the Cultural Education Facilities finance corporation to complete the term of Jeff Springer. His term will expire in 2009 Thank You for Your consideration of this Matter. it Robert`Bob" Koger was born in a small town. named Columbus, located in the South East corner of Kansas. He lived there with his parents, brothers and sisters, and numerous other relatives until he graduated from high school. After graduation he joined the United States Air Force, and spent the next twenty years traveling around the U. S., plus exotic places like Thailand and Viet Nam. During his years in the Air Force he worked as an Avionics (Aircraft Navigation) Equipment Technician, and eventually went into teaching the navigation equipment repair. He spent his last four years in the Air Force as a Military Training Instructor (drill instructor). He retired as a Master Sergeant. When he retired he took two weeks off and then went back to work as the lead Technical Writer for Keuffel & Esser (K & E) Company. During his two and one half years with them his wrote repair and operation manuals on heart monitors, laser ranging devices, test jigs, and numerous other items developed by the company. When K&E decided to move the writing operation to New Jersey, Bob resigned and went back to work for the government. This time he worked for the Department of the Air Force as a Civil Servant in the Education and Training field. He worked many different jobs before finally reaching the position of Dean of one of the major Community College of the Air Force campuses. During his time in civil service he was posted at three different campuses. After 18 years he retired again, this time at the rank of GS44. Bob spent about three months repairing things around the house and fishing before he decided to start writing. Since his retirement he has become a full time writer. His books are,101 Great Youth Soccer Drills, McGraw Hill, and The New Coach's Guide to Coaching Youth Soccer, Skyhorse Publishing. Bob lives in Sanger, Texas, with his wife Mary. They have a daughter, two sons, a grandson, and two granddaughters. City of nt.c k� �3 e,,rG�. �;-- ;--- NAME: S%Cr • � ,' ty cY 1.o I v►.� DATE: Z / z i o � ADDRESS: � Z y�� v � l2, rcb �. ,% � G-� rz._ >= S 7� Z (o,� HOME PHONE: �, EMAIL: �' � � OCCUPATION: (If retired, indicate former occupation or profession) Sn�af� p�5i n�sS Cr�nE 2 PRIOR SERVICE ON A CITY BOARD/COMMISSION? YES CN� IF YES, PLEASE DESCRIBE: PLEASE NUMBER IN ORDER OF PREFERENCE THE BOARD/COMMISSION YOU ARE INTERESTED IN SERVING WITH 1 FOR FIRST PREFERENCE BOARD OF ADJUSTMENT BUILDING STANDARD BOARD HISTORIC PRESERVATION COMMISSION KEEP BANGER BEAUTIFUL BOARD LIBRARY BOARD PARKS BOARD i/ PLANNING AND ZONING COMMISSION SULLIVAN SENIOR CENTER BOARD PROVIDE INFORMATION SUCH AS QUALIFICATIONS, COMMUNITY ACTIVITIES, EDUCATION, TRAINING, TIME. IN CITY, ETC., THAT WOULD MAKE YOU A GOOD CANDIDATE FOR THE ABOVE POSITION(S):.� �ra�.� 6 mot/ cc nFs�'��.�-f- d-� />f.w�� fo � w� -dot 3q y�a�s� O-� � �.��G�- �� '`� ° `"' wtiol' �...,.. �l m pY.ccc.-�c� 4 s ,� a.�( h � S th f s s -1�''a t. 3 z ys.a-r� j �( Sig-k`l pit -�dt � P -`mot 'Y �L- , �Z c�'rs rcl� � � -�- v�-Y Gc s-�r � Q.�.� c ( �n kv�. a.v�- i vk't �. Do you understand that attendance and active support is required for each appointee? � '� ✓yes no Si nature: �%c.G� - Date: Z�Z � �'� g RETURN COMPLETED APPLICATION TO: Office of the City Secretary City of Sanger 201 Bolivar Street This information will become a public record. s�� ',k<< CITY OF SANGER COUNCIL AGENDA ITEM AGENDA TYPE K Regular El Special ❑ Consent Reviewed by Finance ❑ Workshop ❑ Executive ❑ Public Hearing Reviewed by Legal Yes Not Applicable Yes Not Applicable Council Meeting Date: Submitted By: March 3, 2008 Rose Chavez City Manager Reviewed/Approval Initials Date ACTION REQUESTED: ❑ORDINANCE # ❑ RESOLUTION # _ ❑ APPROVAL ❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS ❑ OTHER AGENDA CAPTION Consider and Possible Action for Council to Approve the Mayor not Signing the Official Minutes of Record. FINANCIAL SUMMARY RN/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE ❑CI P ®BUDGETED ❑NON -BUDGETED FISCAL YEAR, PRIOR YEAR CURRENT YEAR FUTURE YEARS TOTALS Proposed Expenditure Amount Encumbered Amount BALANCE FUND(S) TO BE USED: General ❑$ Utility 0 $ Special El$ TML had advised State Law does not require the officially minutes to be signed by the Mayor; however, if this was the practice in the past then Council needed to pass a Resolution to stop. Mr. Dilliard was contacted and he recommended this be done by Council action instead of a Resolution. STAFF OPTIONS & RECOMMENDATION Recommends approval. List of Supporting Documents/Exhibits Attached: Prior Action/Review by Council, Boards, Commissions or Other Agencies: And what does the comptroller say about city property tax rates in the first year following school finance reform? Here's the data: Levu Date Average City Rate City Taxes on $250,000 home October 2005 $0.4863/$100 $1,215.75 ***School finance reform is enacted in May 2006*** October 2006 $0.4865/$100 $1,216.25 (Source: Annual Property Tax Reports, Tax Years 2005 and 2006, Texas Comptroller) It appears that Mr. Pauken is right --city taxes did go up for the owner of a $250,000 home in the first year after school finance reform. They went up exactly 50 cents. But surely some $250,000 homes were worth more in 2006 than in 2005, right? Yes, and in those cases taxes went up by an amount commensurate with the appraisal increase. Where is the evidence that taxes increased far in excess of what was necessary? Where is the evidence of an effort by city officials across the state to raise tax rates in response to school finance reform? The Interstate Comparisons To reach an even more ridiculous conclusion, Mr. Pauken relies on a comparison of the "effective property tax rate" on a $250,000 home in eleven different cities. Mr. Pauken provides the following chart, in which "Effective Tax Rate" is the annual tax as a percent of $250,000. C� Annual Tax Effective Tax Rate Atlanta, Georgia $944.00 0.38% Denver, Colorado $1,332.27 0.53% New York, New York $2,417.70 0.97% Chicago, Illinois $2,681.60 1.07% Oklahoma City, Oklahoma $21750.00 1.10% Little Rock, Arkansas $3,165.00 1.27% Albuquerque, New Mexico $41240.00 1.30% St. Louis, Missouri $35320.39 1.33% Miami, Florida $3,699.66 1.48% Los Angeles, California $33766.55 1.51% Dallas, Texas $6,139.44 2.46% 2 The analysis purports to be "a fair representation of comparative taxes among large cities across the country." For reasons outlined below, it is nothing of the kind. As a seasoned player in the public arena, Mr. Pauken should be well aware of the danger inherent in interstate comparisons: to compare entities on the basis of merely one statistic is inevitably misleading. For example, here are a few things Mr. Pauken's analysis doesn't tell use • In St. Louis, 30 percent of the general fund revenue comes from a local "earnings" (income) tax, which is allowed under Missouri law, and another eight percent comes from a local "payroll tax," a tax on employers. • In Albuquerque, 38 percent of the city's general fund revenue is derived from a local business gross receipts tax (sounds like a business income tax to us). • New York City has a commercial rent tax, a business and personal income tax, a real estate transfer tax, and a massive amount of unrestricted financial aid from the State of New York. • Chicago has a local income tax that provides 14.5 percent of the city's general fund revenue, a real estate transfer tax, and a substantial amount of state financial aid in the form of grants. • Little Rock benefits from both a county sales tax and a city sales tax. The city's sales tax revenue is 4.6 times as much as its property tax revenue. Little Rock also receives a portion of the state gasoline tax in the form of a grant. • Oklahoma City has a sales tax rate of 3.875 percent and receives significant amounts of state financial aid. • Los Angeles has a hefty tax (over nine percent of its general receipts) on utility users, a "business tax," a documentary transfer tax, and revenue from the state motor vehicle license fees. The list could go on and on, but the point is made: these other cities to which Mr. Pauken compares Dallas have many revenue sources (often including an income tax and state aid) that don't exist in Texas and aren't likely to be available any time soon. Mr. Pauken's statistics illustrate what TML has long maintained: because the State of Texas gives its cities few revenue sources and gives them no general purpose financial aid, Texas cities must rely more heavily on property tax revenue than do the cities of other states. If it was Mr. Pauken's goal to prove that point, he succeeded. But if it was his goal to demonstrate that Texas cities are profligate spenders, that they "want to spend all the money they can get," or that they should be subject to state -enacted revenue restrictions, he failed utterly. Given Mr. Pauken's interest in interstate comparisons, we wonder if he has been able to identify a single state that: (a) imposes the kind of revenue restrictions he proposes for Texas cities; and (b) does so without providing cities with numerous revenue sources (including state aid) not available in Texas. 3 Senate Interim Committee Charges Committees of the Texas Senate will be examining the following issues of interest to cities during this legislative interim. T`MI� will closely monitor the process. Senate Committee on Business and Commerce (1) Study the advantages and disadvantages of developing a building code specific to coastal properties in order to mitigate hurricane damage. Focus on avoiding catastrophic losses of property during a major storm. Specifically, consider Florida's building code, which applies to the designation of Enhanced Hurricane Protection Areas (EHPAs) that meet specific criteria to provide shelter and protection for up to eight hours following a catastrophic event. (2) Study and make recommendations on improving the implementation of HB 1196, 80t'' Legislature, to ensure that public funds are not used to encourage illegal immigration into the state by prohibiting any.taxpayer-subsidized job creation grant or tax abatement given to any business entity in Texas that knowingly hires illegal immigrants. Senate Committee on Criminal Justice (1) Study and make recommendations for reducing the number of law enforcement officer deaths in the line of duty. This study should include: • An assessment of the types of calls and assignments that put law enforcement officers most at risk; • The geographic regions of the state that suffer the most deaths; • The agencies experiencing the highest rate of deaths in the line of duty; • The time in an officer's career, and the officer's age that he or she is most susceptible to death in the line of duty; and • The times of year, month, and day that are most dangerous. (2) Study the issue of criminal asset seizure and the use of seized and forfeiture funds by district attorneys and law enforcement agencies. Review the oversight of these matters by the Texas Attorney General and provide recommendations to improve the dissemination of information concerning these funds. Ensure that these funds have the appropriate accountability and fiscal controls required for public funds. (3) Review the processes for re-entry of criminal offenders into communities. Identify barriers to the successful return to law-abiding behavior, including the absence of employment opportunities created by restrictions on obtaining certain state occupational licenses. Provide recommendations for improvements to our current statutes governing this matter. Senate Committee on Finance (1) Explore the policy implications of allowing school districts, or other public agencies, to participate in a permissive pooled collateral program which provides for the centralization of collateral in a pool which will be tracked and verified to meet state requirements. n (2) Study and review state and local options for expanding transportation funding and explore options to reduce diversions of Fund 6 revenue. (Joint charge with Senate Committee on Transportation and Homeland Security) Subcommittee on Property Appraisal and Revenue Caps (1) Review the property tax appraisal system, including the following: • The duties and responsibilities of chief appraisers and appraisal districts; • Any abuses that occur in the appraisal process; • The process of appointing the members of boards of directors of appraisal districts; • The impact of adding members to the boards of directors of appraisal districts who are not appointed by the taxing jurisdictions of the district and methods for appointing these additional directors; _ • The usefulness of information provided in a notice of appraised value; • The impact of HB 1010, 80'b Legislature, Regular Session, relating to appraisal districts crossing county lines; • Any benefit from requiring more uniformity in appraisal standards used by appraisal districts; • Any revisions to the property valuation appeal system that could reduce the cost of dispute resolution; • The likelihood of, and any associated benefit from, increased compliance with the existing business personal property rendition law if chief appraisers are given limited audit authority. (2) Study the benefits and limitations of property tax appraisal caps compared to a limit on revenue a local jurisdiction can receive without the approval of the voters in the locality. Consider alternative sources of funding to replace property tax revenues. Senate Committee on Government Organization Study whether Texas should adopt high performance building standards. In light of the potential impact of Texas' population growth on the need for electricity and water, study whether high performance buildings can cost-effectively lower utility costs and make more efficient use of natural resources. Senate Committee on Intergovernmental Relations (1) Study and make recommendations on Texas' housing programs, with particular focus upon: • Increasing the effectiveness of the Texas Department of Housing and Community Affairs' (TDHCA) Housing Tax Credit (HTC) Program. Examine potential rule changes to the HTC Program's Qualified Allocation Plan to give owners of mixed - income projects seeking low-income housing credits the same opportunity to receive credits that low-income projects have, thus helping cities address the problem of a lack of adequate quality affordable housing while enhancing central city revitalization, • Evaluating the progress of affordable housing programs within the state and developing recommendations to boost the capacity of non -profits to build increased affordable housing developments; 5 ® Assessing the existing use of state and federal housing funds in relation to statutory and budgetary mandates; and ® Examining the incidence of health and safety violations and concerns for general habitability among multi -family and single-family rental properties across the state, including properties financed or supported by the state. Consider the adequacy of the existing authority conferred by the state upon local governments to address violations of habitability standards. Make recommendations for extension of local capacity for redress. (2) Study the provisions of fire and emergency medical services through Emergency Service Districts (ESDs) and make recommendations concerning the provision of those services, and for reconciling potential conflicts due to overlapping taxing jurisdictions in the areas of the state served by ESDs. (3) Review the process for the creation of Municipal Utility Districts (MUDS) and other special districts, and investigate whether the creation of a standard municipal utility district statute is feasible, and whether it would enable the legislature to more efficiently evaluate proposed districts during the legislative session. (4) Study the shifting geographic nature of low-income neighborhoods in urban and suburban areas, focusing on factors that contribute to economic displacement of low- income homeowners and factors that contribute to beneficial redevelopment of distressed neighborhoods. Senate Committee on International Relations and Trade Determine the appropriateness of and make recommendations on the existing extraterritorial jurisdiction authority currently granted under colonia prevention measures along the border region. Senate Committee on Jurisprudence Study administrative and legal procedures used by municipalities to exert regulatory authority beyond city limits and extraterritorial jurisdiction. Determine whether conflicts exist within agencies' regulatory authority and regulatory authority delegated to home -rule municipalities, and make recommendations for appropriate delegation and clarification of respective authorities. Senate Committee on Natural Resources (1) Study the safety of major dams, levees, and other flood control structures across Texas, and determine the appropriate responsible agency [Texas Commissioner on Environmental Quality (TCEQ), Texas Water Development Board (TWDB) or the Governor's Office of Homeland Security] and the level of authority and funding needed to inventory, assess, repair or replace those with impairments. Develop liability and control standards for flood control structures and make recommendations to properly and safely manage these assets in the future. (2) Monitor the implementation of legislation addressed by the Natural Resources Committee, 80th Legislature, Regular Session, and make recommendations for any legislation needed to improve, enhance, and/or complete implementation. Specifically, focus on SB 3, relating to water; SB 12, relating to air quality; and the transfer of historic properties from Texas Parks and Wildlife Department to the Texas Historical Commission. Senate Committee on State Affairs (1) Study the issue of security and accuracy in Texas elections. The study should include the benefits and risks of electronic voting technology, including the necessity of maintaining a paper record of each electronic vote. The study should also include an analysis of fraud in Texas elections, including prosecution rates for voter fraud, the processes for purging ineligible voters from voter lists, and the integrity of the maiMn and provisional ballot systems. Study the effectiveness of electronic voting technology and voter ID laws in other states. Monitor the implementation of the federal Help America Vote Act of 2002, including the implementation of the Texas Election Administration Management system. Recommend statutory and regulatory changes designed to ensure that only eligible voters are allowed to vote in Texas elections and that each vote is accurately counted. (2} Study the economic impact of recent civil justice reform legislation in Texas. (3) Monitor the implementation of legislation addressed by the State Affairs Committee, 80�' Legislature, Regular Session, and make recommendations for any legislation needed to improve, enhance, and/or complete implementation. In particular, monitor and report on the effect of HB 2365, which allows public entities to report "other post employment benefits" (OPEBs) on a statutory modified accrual basis, including any effect on auditor opinions, bond ratings, or other fiscal issues. Monitor the implementation of Senate Bill 1731, relating to transparency of health information, and Senate Bill 1846, relating to TRS. Senate Committee on Transportation and Homeland Security (1) Examine the roles and best practices among individuals, state and local governments, hospitals and other health care providers, and the insurance industry for disaster planning and first response efforts. Explore what changes are needed to better prepare for natural disasters to mitigate claims and losses. Include an assessment of the state's implementation of recent recommendations for evacuations, including movement Of medically fragile populations. Study the level of preparedness among critical infrastructure entities in both the public and private sector, the effectiveness of state disaster relief policies relating to this infrastructure and the sufficiency of personnel needed to restore this infrastructure. Assess the states' preparedness to handle a public health emergency. Examine the challenges of interoperability of communications technologies to improve coordination of different plans across jurisdictions. (2) Study and make recommendations regarding state and local regulation of billboards. Produce a graphical analysis of current billboards, evaluate objective criteria for locations where billboards can be permitted or prohibited, including but not limited to geographical (corridor or urban/rural), land usage (e.g. industrial), or cultural/historical criteria, and include consideration of the impact on any federal funding. (3) Study and make recommendations for improving management and • oversight of Metropolitan Planning Organizations (MPOs). Include a review of populations served, 7 MPO governance, oversight, roles, variation among MPOs, and MPO decision -making ability in relation to TxDOT or other agencies. (4) Study Comprehensive Development Agreements (CDAs) and make recommendations to ensure the maximum benefit to taxpayers. Study the implications of requiring CDAs to have definitive buyback formulas that can be calculated without using any form of future revenue forecasts. Study requiring potential CDA projects to be solicited only after environmental clearance has been granted. Study the implications of shortening CDA's maximum allowable contract duration. Study provisions affecting competing facilities. (5) Review the status of structurally deficient bridges and provide increased oversight of TxDOT's bridge repair activities to ensure that any unsafe bridges are identified and repaired as soon as possible. (6) Study and make recommendations relating to the status of current and planned. toll road projects in Texas, the use of public -private partnerships to build new roads and/or transit services, and the market valuation process. Analyze the impact of lengthening the number of years a toll road authority may issue bonds. (7) Study the effectiveness of the Trans -Texas Corridor (TTC) and make recommendations for its future role in providing additional roads in Texas. Provide specific recommendations relating to public input in the development of the TTC. (8) Study and review state and local options for expanding transportation funding and explore options to reduce diversions of Fund 6 revenue. (Joint charge with Senate Finance Committee). Senate Select Committee on Economic Development (1) Inventory economic development programs and incentives, including tax abatements, offered by state and local governments. Review the costs and benefits of Texas' economic development tools, including the Texas Enterprise Fund and the Texas Emerging Technologies Fund, and make recommendations for improvements. Review similar incentive programs in other states and the -potential impact on Texas' competitive advantage in attracting and keeping strong businesses. Analyze regional economic development trends and opportunities and identify options for maximizing economic development with region -specific incentives. (2) Review the costs and benefits of using the Texas Enterprise Zone Program as an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment in economically distressed areas of the state. (3) Examine the costs and the effectiveness of policy options, including state incentives, available to cities and counties to preserve and redevelop historic downtown properties. Study the merits of developing a comprehensive state policy of offering incentives to local governments for activities relating to recruiting and hosting special events. E3 A recent decision by Texas' highest criminal court, the Court of Criminal Appeals, will affect certain municipal court actions involving more than one charge against a defendant. State v. Crook holds that when multiple criminal actions are joined together for a single criminal trial, only one payable fine may result. This is true regardless of how many separate fines are actually issued by the judge or jury. Fines must run "concurrently" rather than "stacked," as is done under current law. Here's an example: a defendant is ticketed by police for both speeding and a seat belt violation during the same traffic stop. The municipal prosecutor may, and often does, elect to try both charges at the same trial. (Incidentally, the defendant has always had the right to "sever" those offenses into separate trials.) Before Crook was decided, fines for convictions of both offenses had to be paid in full. If the fine was $100 for the speeding violation, and $75 for the seat belt violation, the defendant would owe $175. After Crook, however, the defendant would owe just $100, as the smaller fine is subsumed by the bigger fine. While this opinion will have some effect on fine revenue stemming from garden variety municipal court cases- traffic tickets, disorderly conduct, and so forth- the greatest potential effect may be on so-called environmental offenses stemming from violations of municipal ordinances. If a dilapidated building is causing a dangerous nuisance, for example, municipal prosecutors pre -Crook had the option of charging the building's owner with a $2,000 per day violation until the owner fixed the nuisance. Now, after Crook, the owner of such a building might choose to let the nuisance go unremedied, knowing that the maximum fine faced at a consolidated criminal trial is just a single payment of $2,000. A TML legislative policy committee will examine this issue prior to the 2009 legislative session. Other levels of government that prosecute criminal offenses are sure to be concerned about the opinion, as well. By law, a city's annexation plan must identify proposed annexations of areas that contain 100 or more residential dwellings. If an area contains 99 or fewer residential dwellings, however, the city is not required to place the area in an annexation plan. Section 43.052(1) of the Local Government Code prohibits a city from "dividing" an area with 100 or more residential dwellings in order to avoid the plan requirements. Specifically: If a municipality proposes to separately annex areas in violation of this section, a person residing or owning land in the area may petition the municipality to include the area in the municipality's annexation plan. If the municipality fails to take action on the petition, the petitioner may request arbitration of the dispute. In 2005, the City of Rockwall proposed to annex an area that was not included in its annexation plan. The landowner, believing the city had violated Section 43.052(i), petitioned the city to include the area in the plan, and the city council voted to deny the request. The landowner then sought arbitration, which the city also denied. The landowner ultimately sued, attempting to force the city into arbitration. G� The case hinged on whether the plan and arbitration requirements are substantive or procedural. The difference is relevant for this reason: courts have long held that an individual landowner does not have standing (the right) to sue for procedural annexation matters. The trial court in the case concluded that the requirements are procedural, but the court of appeals reversed, thus granting standing to the individual landowner. In a decision that took more than two years to issue, the Supreme Court of Texas recently concluded in City of Rockwall v. Hughes (No. 05-0126) that the plain language of the statute controls, and that so long as a city considers and rejects a request for arbitration, the city has complied with the statute. The only available remedy for a landowner is a quo warranto proceeding (a suit brought by the district or county attorney on behalf of the state to challenge alleged procedural irregularities in an annexation). The decision is a favorable one for Rockwall and all other cities that annex property. However, the last line of the opinion is reminiscent of the U.S. Supreme Court's Kelo v. New London eminent domain decision in 2005 that brought on a flurry of state legislative action: If the Legislature desires to amend the statute to add words so that the statute will then say what is contended for by the [Iandownerl, we are confident it will do so. A motion for rehearing has been filed, and TML staff will continue to monitor the case and take action as necessary. For a complete guide to annexation in Texas, please visit www.tml.ora, and Follow the links for Legal, Land Use and Building regulations. TDLR issues Proposed Tow Truck Rules On February 8, 2008, the Texas Department of Licensing and Regulation (TDLR) released voluminous proposed rules to implement the provisions of H.B. 2094 enacted in 2007. That bill, titled the "Texas Towing Act," did the following: (1) established licensing requirements for tow truck operators and vehicle storage facilities; (2) established state -level permitting requirements for nonconsent, consent, and private property tows; and (3) provided that a tow truck may not be used for consent towing or nonconsent towing on a public roadway in this state unless an appropriate state permit has been issued for the tow truck. Neither the bill nor the rules appear to preempt city tow truck rotation lists nor other municipal towing regulations. However, cities with comprehensive towing regulations should review the proposed rules and comment as appropriate. The proposed rules may be viewed at: ittp://www,sos.state.tx.us/texreg/index.shtml, Comments are due by March 7, 2007. 10 Eme Numbers t t I+ undi Emergency Management Performance Grants (EMPGs) are grants given by the Federal Emergency Management Agency (FEMA) and administered in Texas by the Governor's Division of Emergency Management. For fiscal year 2008, the federal government has released over $290 million for EMPGs. Of that amount, Texas is allotted almost $16 million. EMPGs provide resources to assist cities and the state to sustain and enhance their emergency management capabilities. To be eligible to receive these grants, a city applicant must meet federal National Incident Management System (NIMS) compliance requirements and apply through the Governor's Division of Emergency Management. Federal NIMS compliance information is available at: http://www.fema.gov/emergency/nims/compliance/2007 shtm. Compliance requirements include training, adoption of NIMS requirements, and other planning activities. City officials should contact their regional liaison officer for compliance information. A city may locate its regional liaison officer by calling the main Division office at (512) 424- 2455 or by going to: http://www.txdps.state.tx.us/dem/pages/fieldresponsedirector_y htm. Additional information on applying for these grants is available at: http://www.txdps.state.tx.us/dem/�ages/downloadableforms htm#empg. Senate Bi115 Update: Cable Industry Wins Procedural Victory Senate Bill 5, which authorizes astate-issued certificate of franchise authority for cable and video providers, became law in 2005. Some cable companies were opposed to certain provisions of the bill, and they filed a case in federal court a day after the bill's effective date. In Texas Cable and Telecommunications Association v. P. U.C. Commissioners, the Texas Cable and Telecommunications Association (TCTA) challenged the "grandfathering" provision in S.B. 5. That provision requires incumbent cable providers to fulfill obligations under existing franchise agreements until those agreements expire. The TCTA claims, among other things, that its members (incumbent cable providers) are being discriminated against because they can't unilaterally opt out of existing franchises. The counter - argument to TCTA's position is that nothing in the U.S. Constitution or federal law requires providers to be treated exactly the same. In fact, the federal Telecommunications Act grandfathered existing agreements when it was adopted in 1996. The lawsuit was filed on September 8, 2005, and a hearing on motions for summary judgment was held in Austin in May 2006. In September 2006, the court dismissed the case on procedural grounds. Essentially, the court concluded that the case was not "ripe" for litigation because the TCTA failed to show an example of how being bound to existing franchise agreements would 11 cause specific economic harm to its members. In 2007, the TCTA appealed the dismissal to the Fifth Circuit Court of Appeals. On February 7, 2008, the Fifth Circuit issued its opinion and concluded that the TCTA's claims are, in fact, ripe for further proceedings. The case will now be remanded to the trial court for proceedings on the merits. TML will continue to work with interested parties to protect the interests of Texas cities. Please contact the TML Legal Service Department with questions at (512) 231-7400. Don't Forget: Curfew Ordinances Need Review Section 370.002 of the Local Government Code requires that after a city adopts a juvenile curfew ordinance, the city must review and readopt the ordinance every three years. The statute requires that a city: (1) review the ordinance's effects on the community and on problems the ordinance was intended to remedy; (2) conduct public hearings on the need to continue the ordinance; and (3) abolish, continue, or modify the ordinance. A juvenile curfew ordinance expires if a city does not review and readopt it every three years. For more information on this issue, please contact the Texas Municipal League Legal Services Department at (512) 2314400 or legal@tml.org. TML member cities may use the material herein for any purpose. No other person or entity may reproduce, duplicate, or distribute any part of this document without the written authorization of the Texas Municipal League Far #uurther inlor�refien cotatacg the Ti�tl Legisiafive Services ®epartr�erst 1821 Rutherford Lane, Suite 400, Austin, Texas 78754-5128 512-231-7400, fax 512-231-7490 0 vrwW.tml.org