03/19/2007-CC-Minutes-RegularMINUTES: CITY COUNCIL
MARCH 19, 2007
PRESENT: Councilman Andy Garza, Councilman Glenn Ervin, Councilman Robert Patton,
Councilman Mike James
MEMBERS
ABSENT:
OTHERS
PRESENT:
Mayor Higgs, Councilman Walker
City Manager Jack Smith, City Secretary/Assistant City Manager Rose Chavez,
Administrative Secretary Tami Taber, Billing Clerk Paula Morales, Police Chief
Curtis Amyx, Fire Chief David Pennington, Economic Development Director,
Cecile Carson, City Auditor Bill Spore, Woodrow Barton, Jimmie Spears, Bret
Chance, Ronnita Jensen, Kent Price, Kay Van Hauen, KayLee Parrott, John
Jensen, Claudette Boyer, Robert Boyer, Mona Price, Travis Montgomery,
Maria Flores, Kim Hestand, Mike Hestand, Fondanyne Sauter, Michael
McClintock, Dean Bray, Merrie Lou Abney, Jacklyn Pevehouse, Mike Thaten,
Thomas Muir, Bennett McQuien, Ryan Kane, James Mooney, Lena McCoy,
Rachel Pentico, Capricia Willis, James Willis, Melissa Poston, Sherry Lewis,
Robert Ingram, Roy Taylor, Dayna Erwin, Judy Aguirre, John Black, Victor
Villarreal, Robert Grant, Chris Worster, Lindsey Reimers, Shirley Bistrup, J
C Hughes, Sandra Tostado, Crystal Johnson, Jennifer Newton, Stehame Pun,
Brandon Johnson, Paul Schaab, Linda Green, LaShawn Green, Cora Harner,
Javier Hernandez, Sidney Green, Sandra Vallejo, Eddie Lane, Stephanie Schley
1. Mayor Pro Tem Ervin called meeting to order, led Invocation, followed by Councilman
James leading Pledge of Allegiance.
CONSENT AGENDA
2. a) Approve Minutes: March S, 2007 -Minutes
b) Disbursements
Motion was made by Councilman Patton to approve consent agenda. Seconded by
Councilman James. Motion carried unanimously.
3. Citizen's jr
Citizens are allowed 3 minutes to speak, The City Council is unable to respond to or to discuss any issues
that are brought up during this section.
None.
4. City Presentation and Public Discussion on Utility Rates.
City Manager advised there are three things that control an electric bill; base electric
charge per kilowatt hour and that charge is set by the City Council. The same charge
is the same rate that was charged in 2001. The rates have remained the same for six
years. The second thing is the power cost recovery factor. This is what is charged to
the City per kilowatt hour by the company who sells us electricity. The City does not
generate its own electricity, so the City has to buy the power. This factor rises and falls
every month. This rate is not controlled by the City Council. The third thing is the
amount of usage, a customer's usage is not controlled by the City Council but is
controlled by the customer.
The City Manager advised that a comparison of usage in several areas of the City was
done and most of the citizens at tonight's meeting are probably from those areas who
have the highest consumption for this month.
The power recovery factor is a calculation that is done every month based on the bill
that Brazos sends the City. The City has to recover that charge and it is based on the
number of kilowatt hours everyone uses.
City Manager indicated that if anyone has questions on the rate, he will be glad to help
and if anyone has a question on the calculation of the power cost factor, the CPA is
available at this meeting to answer questions. The City Manager also advised that if
their questions had to do with usage then he could not help them because the usage
went through their meter. The meters are brand new and all electronic. They are
99.9% correct and are certified. City Manager also advised that he does not have an
all electric home, but in the month of February 2007 was the highest month of gas usage
he has ever used.
City Secretary then addressed the citizens at the meeting by explaining the comparison
in usage in the different areas of town. She began first by explaining that when she
bought her home she chose to have an all electric home. In the billing month of
February, which is the month that everyone is upset over, she used 5,400 kilowatt hours
in usage. Her bill was $722 for the electric portion only. She explained that she has
had several electricians come and look at her units including the meter and everything
is working properly. City Secretary also explained she used the energy wrap around
her home and installed insulated windows when the home was built to help conserve
energy. The only thing she attributes to her high consumption of her electric bill was
that during this billing cycle there were 17 days below freezing and the rest of month
was very cold. She explained in an all electric home you have coils that have to warm
up before you feel the warmth and in a gas home the air comes out warm as soon as the
unit kicks in. Even if the thermostat is set at 67 or 68 degrees the units kept kicking in
constantly. The comparison was explained that in the summer months the usage is less.
City Secretary presented a chart that included homes on N. 8',Quail Run, Southside,
Holt and N. 4`h that had all electric homes. City Secretary explained that she
understood people are upset and that she was too, but she used the consumption. The
weather had a lot to do with the high consumption.
City Secretary advised that if a customer has been with the City twelve continuous
months that they can make an application for average billing which is what she has to
do. She indicated that there is a difference between an all electric home and a gas
home. She explained that she failed to make an effort to economize and failed to realize
that even her dishwasher uses a lot of kilowatt hours in the dry cycle. Electric
Superintendent Mike Prater explained to her that a person would be surprised how
much it does pull in an all electric home.
City Secretary indicated she sympathized with everyone and she would be glad to help
anyone look at their account so they can make their analysis in the consumption they
use. She explained the rate comparison as published by the P.U.C. and explained that
during the month of February the base rate and the PCRF factor total was 13.30 cents
per kwh.
There were rate comparisons that were presented to the citizens. Texas Electric was
15.00 cents, Direct Energy was 14.00 cents per kwh. The City was in the middle with
their rate charge. She asked the citizens to please look at the handout on the
comparisons and also indicated that she was also asked a question on how much money
the City has in reserve for the electric. There is not any reserves. The CPA prepared
a handout that lists all the revenues less expenses and capital. The City has bond
expenses and the reserves are for the bond payments. City Secretary explained that if
the citizens would look at the handout that listed the PCRF for the last six months, most
A these months had a PCRF of four cents or a little higher, however, during those
months the customer's consumption was low.
A citizen expressed that the PCRF fluctuates and it seems that the City should buy it
from someone who keeps it the same. City Secretary explained that the bill fluctuates
as the City Manager explained and the City has to recover that cost. The City is a
month behind and by the time the citizens get their bill they are also a month behind.
Another citizen addressed the City Council and asked if the City Council has done due
diligence to check with other electric providers to see if they are getting the best rate.
Another citizen explained that her bill was 6% higher than last month and that it had
doubled.
Sherry Lewis, 600 S. IOth, expressed her frustration with her bill. She explained she
has nothing that is electric. Ms. Lewis explained that CoSery is 12.00 cents per kwh.
She continued to be upset since her bill went up 500 kwh.
The City Manager explained that the City cannot control her consumption and that the
City cannot buy from Denton Municipal.
City Secretary advised that the City is working with families in Quail Run and South
side who have these high electric bills. The City is willing to work in splitting their
payments and deleting their penalties.
A citizen from the audience inquired as to what were the elderly people going to do
with their electric bill and how can they afford to pay it.
City Secretary advised there is a program which is called Community Service and that
they come once a month and take applications to assist families with energy bills. The
thing about programs is that you have to qualify by income guidelines and most senior
citizens qualify and sometimes get help for three or four months.
Questions were asked as to why the City is not allowed to use another utility company.
City Manager advised that all utilities are controlled by the P.U.C. or Commission of
Environmental Quality which is called certificate of convenience and necessity. Sanger
has an area that they are allowed to serve and south of Sable Creek is CoServ's area.
Councilman Garza asked why Sanger cannot cross CCN boundaries.
City Manager indicated this is regulated by the P.U.C. who sets the certified area for
electricity. CoServ, City of Denton can not serve our area and the same applies to
Sanger.
City Manager gave the City of Denton as an example. The City of Denton Utilities is
part owner of a power plant that Garland owns. They have a contract with the City
of Garland on their power plant and they generate their own power. In that agreement
they will not sell wholesale. The City cannot buy from the City of Denton. CoSery is
a co-op and they cannot sell to the City. The only other power company the city can
buy from is TXU and they are higher than Brazos.
City Manager indicated that if they were to buy power from anyone else, Brazos owns
the substations where the power has to come to. Brazos will still charge a line charge.
Even if the City got a lower rate from A.E.P. the City still has to kick in that part of the
escalated rate which will be a charge from Brazos for using their substation.
Kim Hestand, 508 Denton, asked if the PCRF rate can stay the same for a quarter to
allow citizens to budget.
Dayna Erwin,108 South Meadow, indicated last month she could not get an extension
on her utility bill. This month she was told she could pay half this month. She
understands that there are ordinances that do not allow extensions but this month the
city is allowing extensions.
City Secretary advised that the employees in the front office are following ordinance
guidelines. City Secretary advised that the City had over $901000 in bad debt from
utility accounts in 2006. Each customer's account has to be analyzed on a one on one
basis before extra extensions are considered and not everyone in the office can make
those decisions.
Stephanie Schley, 209 S. 5`h, questioned her usage and indicated there was not anyway
they could have used that much consumption.
City Secretary indicated that it is up to the customer to lower their cost by the way they
use their electricity in their home.
There were customers who were upset and indicated they felt that the City calculates
the bill the way they want it to be.
City Secretary assured everyone that the City is not just calculating a rate. The rate
is calculated based on what is billed to the City.
Cora Harner, 100 Maned, commented that when they call the City they don't give
correct information. She expressed that the same information needs to be related to all
the citizens so everyone gets the same answer. The new website for the City needs to
have information concerning assistance and information relating to assistance.
Victor Villarreal, 804 So also complained about his usage. He explained everything
in his home is new and how can they use more in the winter than in the summer.
City Secretary indicated that the staff will be glad to look at his account and give him
a scale on his usage based on month to month.
Mr. Villarreal indicated he still did not understand how he will use less in the summer.
Sandra Tostado, 111 South side, indicated that she has a small house. She was
inquiring if the houses in that area were built less energy efficient. She basically
inquired if there was a problem with these houses.
Linda Green, 304 Quail Crossing, also complained about her usage. She asked if
Sanger wants to see our City grow or is this a way the City has to keep people from
living in this community. She expressed she is on a limited income. Ms. Green
continued to explain that she wanted something to be done.
Councilman Garza indicated that he pays the same thing that everyone does. He has
gas and electric and his bills have been higher these last few months for both gas and
electric. It is not that the City is charging certain citizens more than others. Everyone
pays the same.
City Secretary advised that the meters are read electronically. She advised when she
got her bill she turned everything off in her house and then turned everything back on
to check the meter to see how much kwh her home would pull in one hour.
Mrs. Green continued to be upset and indicated if she has to monitor her usage then
she should not be billed.
Dean Bray, 61710`" Street, "Look What I Found" business occupies Suite 203 & 204
and they pay for separate meters. to Bray also expressed a complaint on the high
usage. He asked that they re-evaluate his usage. He indicated that he did have a
problem with employees trying to make it comfortable for the customer and his store
temperature was sometimes around 74 degrees.
Mr. Bray continued to express his frustration and felt that the City is not willing to
work with them to give them an opportunity like an extension to allow them to make
payments. He asked that the City give them the opportunity then they will be glad to
evaluate their own usage.
Councilman Patton addressed Mr. Brey's statement and summed up everyone's issue
with this situation and indicated that this was something the City did not want to get
into in the first place and apologized that the Mayor and Councilman Walker were not
present to listen to their concerns. The City's hands were tied as far as getting in
contractual agreement with Brazos. In response to Mrs. Green's statement, they do
welcome new people and they want to treat people as graciously as a small City can do.
Some of the issues concerning the elderly and those who are in financially sensitive
situations were brought up in the conversations from the citizens. Councilman Patton
apologized for any misinformation that customers received when they called the City.
It would be very nice if everyone in the City had a sheet of paper with the perfect
answer for everyone's questions. He wished the City had the capability on the City's
online system which is fairly new for citizens to address individuals questions to the
City Council and City employees. Hopefully, the capability will be there in the near
future. The City is experiencing dynamic growth and is experiencing growing pains.
Councilman Patton continued to express that they are very sensitive to the issues that
the citizens have raised.
Councilman Patton expressed he has paid more in the last two months than he has ever
paid. One month he received a $600.00 bill and Electric Superintendent Mike Prater
visited with him concerning his usage. The problem with his account was that he had
not cleaned the coils in three years and that caused his usage to be so high. The new
meters that have been installed are efficient and he strongly believes they are 99.9%
accurate. He recommended that customers try to do preventive maintenance at home.
City Manager advised that the City can conduct an energy audit, check doors,
windows, etc., run an amp meter on each breaker and check which breaker is handling
the most load at any one time. There is also the thermal imager device where the city
employee can come on a cold day and tell someone where heat is being lost and on a hot
day tell where cool is being lost. The utility company is owned by the citizens and the
City cares about their situations.
Robert Ingram of Chicken Express expressed his bill was also very high and
encouraged citizens to come eat more chicken.
John Jensen, 114 Colonial Heights, is not sure he believes that the meters are as
accurate as what the City has been led to believe. His complaint was his water
consumption.
Travis Montgomery, 60'7 S. 10`h, commented that the City ordinance does not allow
extensions and asked if this was something that the City Council can change and now
is this handled. His usage comes in the summer and he complained about the City not
having extensions and asked the City Council to re-evaluate this ordinance.
A citizen asked about changing their electric provider and indicated that the City
Council has the authority to make that change and also asked why citizens are not
given the option for them to change providers.
Michael Mc Clintock, 1406 Mandarin, indicated that the big issue everyone has
expressed is the electric bill and he would like the rate to be on the website so people
know how much to expect.
Ben Mc Quien, 4 Sandpiper, explained that his bill has been $300 since he has moved
to his home in Sable Creek. His power provider is CoServ. Mr. Mc Quien explained
that in answer to their questions on how they can use so much energy in the winter. He
explained when a person uses an air conditioner, the same fan that blows cold air is the
same fan circulates heat in the winter. There are ten to twelve coils running through
the fan. This is why the electric goes up in the winter. In the winter his family puts
more clothes on and in the summer they wear less clothes and the thermostat always
stays the same.
Roy Taylor, 602 N. 5`h, also complained his electric bill was high. All those companies
that make electricity should not be allowed to charge a fuel cost for the cost of
electricity.
Rachael Pentico,121 Ringneck, also does not understand the usage.
Judy Aguirre, 800 S. Keaton, complained about the usage in her house and explained
that she does not understand. When she bought this house people warned her that the
bills on that house were huge. She also explained that during Christmas time she had
numerous outdoor light displays and lights on her house that were on all the time and
her bill was lower than it is now. Her bill this month was $1100. She monitors her
usage daily.
City Manager explained that the meter was pulled and tested 99.9% correct for
accuracy. When a meter is pulled it is not sent to the same place that the City
purchased it from, it is sent somewhere else.
City Secretary explained that this problem is nationwide. When ERCOT came in it
was to regulate the cost of power but it hasn't. A good example is if the gas at the
pump goes up then energy goes up.
Concerns that the citizens will possibly move from the City if this continues.
Sherry Lewis advised that there is a bill at the legislative level which is Senate Bill 482
to regulate the cost of electricity.
3. Citizens's Input
Mayor Pro-Tem Ervin re -opened this item to allow Mr. Ben Mc Quien to express his
complaint.
Mr. Mc Quien expressed a concern with Jake Sampson, the builder rho home and
requested that the City not approve any new building permits for Mr. Sampson. Mr.
Mc Quien advised that residents in that neighborhood are having continuos problems
with their homes and that Mr. Sampson does not want to correct the problems. In the
past he had to contact the Sanger Police Department because of a dispute he was having
with Sampson. McQuien said that he had contacted city officials of Anna, Texas and
P1lot Point, Texas and requested that they not approve any building permits for
Sampson there too.
City Manager advised Mr. Mc Quien that he would not approve any new building
permits for Mr. Sampson.
5. Consider and Possible Action on Approving Audit for Fiscal Year End 2005/2006.
City Auditor Bill Spore advised the final audit reflects the amendments which were
previously adopted at the last City Council meeting. He indicated that the final budget
reflected the amendments.
Councilman James approved the audit as presented. Motion seconded by Rusty Patton.
Motion carried unanimously.
6. Conduct Public Hearing to Consider a Variance Request (under Chapter 10, Section
9.03) from Carl B. Sadau - Regarding Street Improvements in the Extra Territorial
Jurisdiction. The Property is Located on Mc Reynolds Road.
Mayor it Tem Ervin declared Public Hearing open.
Woodrow Barton asked what the variance was for.
City Manager indicated it was for a street variance.
Mayor Pro Tem Ervin declared Public Hearing closed.
7. Consider and Possible Action on Variance Request (under Chapter 10, Section 9.03)
from Carl B. Sadau - Regarding Street Improvements in the Extra Territorial
Jurisdiction. The Property is Located on McReynolds Road.
Councilman James made motion to deny the request. Councilman Patton seconded.
Motion denied unanimously.
8. Conduct Second Public Hearing to Consider Proposed Annexation of the Following
Properties.
NL HOBBS ADDITION, BLOCK A, LOT 5
NL HOBBS ADDITION, BLOCK A, LOT 4R
ABSTRACT 201, WM MASON SURVEY, TRACT 31, BEING 74.184 ACRES
ABSTRACT 29, REUBEN BEBEE SURVEY, TRACT 107, BEING 196.00 ACRES
Mayor Pro Tem Ervin declared Public Hearing open. No one spoke for or against.
Mayor Pro Tem declared Public Hearing closed.
9. Consider and Possible Action on Ordinance 003-09-07 Regulating Placement of Gas
and Electric Meters on all New Single Family Residential Buildings.
Mayor Pro Tent Ervin advised that he would like to include water meters in this
ordinance.
Discussion followed and a question was asked if this information is supposed to be
included in the building plans.
City Manager indicated that it is; however, there are times when it is not on the plans
and then builders will place the meter where they want and with this ordinance in
place it will regulate this and control the problem.
Councilman Patton made motion to approve Ordinance #03-09-07. Seconded by
Councilman Garza. Motion passed unanimously.
Caption as follows.
AN ORDINANCE OF THE CITY OF SANGER, TEXAS, AMENDING CHAPTER
3, ARTICLE 3.2200 "REGULATING PLACEMENT OF GAS AND ELECTRIC
METERS ON ALL NEW SINGLE-FAMILY RESIDENTIAL BUILDINGS";
PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT;
PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR A PENALTY OF
FINE NOT EXCEEDING FIVE HUNDRED DOLLARS ($500.00) FOR EACH
OFFENSE; AND PROVIDING AN EFFECTIVE DATE.
10. Consider and Possible Action on Fire and Emergency Response Grant.
Fire Chief David Pennington explained the grant and advised that he needed City
Council approval before applying for the grant. Basically, it is a 5 year commitment
by the City.
Chief Pennington explained that some benefits of the grant would include decreased
response time, would allow more certified personnel on the scene, keeps personnel at
the fire station 24 hours and would lower the ISO rating
lst year 90%
2°d year 80%
3`d year 50%
4tn year 30%
5th year 100%
Discussion on the benefit to the City and the City's funding match for each year.
Councilman Garza moved to approve the application for the fire and emergency
response grant. Councilman Patton seconded. Motion approved unanimously.
11. Consider and Possible Action on Resolution R4403-07-07 National Agriculture Week in
Texas.
Councilman Patton moved to approve Resolution R4403-07-07. Councilman James
seconded. Motion carried unanimously.
12. Consider and Possible Action on Professional Services Agreement with Centurion
American.
J. C. Hughes was present on behalf of Centurion American regarding the property
North of I-35 for the proposed planned development.
City Manager inquired about adding Trent Petty's name to the pre -development
agreement.
Discussion concerning the agreement.
Died for Iack of motion.
13. Consider and Possible Action to Award Fuel Bid for the City of Sanger Fleet.
City Secretary advised that this bid was published twice. The first time, no one bid and
the second time the bid was published, Gateway #18 was the only bid received. The
current bid is up from four cents to five cents.
Councilman James moved to approve award the fuel bid to Gateway #18. Councilman
Patton seconded. Motion carried unanimously.
i4. Possible List of Future Agenda Items.
None.
15. Meeting Adjourned.
ATTEST:
/ oe Higgs, yor
Rose Chavez, City