HomeMy WebLinkAboutAgenda CC 05.09.2006Notice of Meeting of the
Governing Body of the
City of Georgetown, Texas
Tuesday, May 9, 2006
The Georgetown City Council will meet on Tuesday, May 9, 2006 at 06:00:00 PM at City Council
Chambers, at the northeast corner of Seventh and Main Streets, Georgetown, Texas.
If you need accommodations for a disability, please notify the city in advance.
An agenda packet, containing detailed information on the items listed below, is distributed to the Mayor,
Councilmembers, and the Georgetown Public Library no later than the Saturday preceding the council
meeting. The library's copy is available for public review.
Please Note: This City Council Meeting will be video taped live without editing and shown on the
local cable channel.
Executive Session
Regular Session to convene and continue Executive Session, if necessary
In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes,
Annotated, the items listed below will be discussed in closed session and are subject to action in the
regular session that follows.
A Sec.551.071: Consultation with Attorney
- Advice from attorney about pending or contemplated litigation and other matters on which the attorney has a duty to
advise the City Council, including agenda items
B Sec.551.087: Deliberations Regarding Economic Development Negotiations
- Discussions or deliberations regarding commercial or financial information that the governmental body has received
from a business prospect that the City Council seeks to have locate, stay or expand in or near the territory of the City
and with which the City Council is conducting economic development negotiations; or to deliberate the offer of a
financial or other incentive to a business prospect that the City Council seeks to have locate, stay or expand in or near
the territory of the City and with which the City Council is conducting economic development negotiations.
C Sec.551.074 Personnel Matters
- Annual Performance Evaluation and Compensation Review of City Manager
Regular Session - To begin no earlier than 06:00 PM
(Council may, at any time, recess the Regular Session to convene an Executive Session at the request of
the Mayor, a Councilmember, or the City Manager for any purpose authorized by the Open Meetings Act,
Texas Government Code Chapter 551.)
D Call to Order
Pledge of Allegiance
Comments from the dais
- Welcome to Audience and Opening Comments -- Mayor Gary Nelon
- Review of procedure for addressing the City Council
Announcement of vacancies on Library and Parks Boards
Presentation of a Proclamation honoring Faith in Action Caregivers - Georgetown
Presentation of a Proclamation for Police Appreciation Week
G Announcements and Comments from City Manager
Public Wishing to Address Council
City Council Agenda/May 9, 2006
Page 1 of 5 Pages
I Action from Executive Session
Statutory Consent Agenda
The Statutory Consent Agenda includes non -controversial and routine items that Council may act on with
one single vote. A councilmember may pull any item from the Consent Agenda in order that the council
discuss and act upon it individually as part of the Regular Agenda.
J Consideration and possible action to approve the minutes of the Council Workshop on Monday, April 24,
and the Council Meeting on Tuesday, April 25, 2006 — Sandra D. Lee, City Secretary
K Consideration and possible action to accept the mid Year Status Report to Council -- Micki Rundell,
Director of Finance and Administration and Paul Brandenburg, City Manager
L Consideration and possible action concerning the dedication of a 20' wastewater utility easement across
Georgetown Municipal Airport property in connection with the Pecan Branch Wastewater Interceptor—Phase
IV project -- Jim Briggs, Assistant City Manager for Utility Operations
M Agreements
1. Consideration and possible action regarding the Second Amendment to the TASUS Abatement
Agreement — Micki Rundell, Director of Finance and Administration
2. Consideration and possible action to amend the development agreement with 500 South Austin
Avenue, LP to extend the construction commencement date by 60 days -- Tom Yantis, Assistant City
Manager
N Grants
1. Consideration and possible action to grant permission to the Georgetown Public Library to accept a
grant of $2,500 from the 2005 Texas Book Festival -- Eric Lashley, Library Services Director and
Randy Morrow, Director of Community Services
2. Consideration and possible acceptance of the Grant of $3,600.00 from the Texas Commission on
Fire Protection -- Anthony Lincoln, Fire Chief
3. Consideration and possible action to authorize staff to prepare a grant application to Texas Parks and
Wildlife to renovate Pickett Trail — Kimberly Garrett, Parks and Recreation Director and Randy Morrow,
Director of Community Services
O Voluntary Annexations
1. Consideration of a resolution granting a petition and setting public hearing dates for the voluntary
annexation into the City for 370.893 acres, more or less, in the David Wright Survey, Williams Roberts
Survey and John Berry Survey, east of Airport Road and south and west of Berry Creek, for Buie
Ranch — Bobby Ray, AICP, Director Planning and Development and Edward G. Polasek, AICP,
Principal Planner
2. Consideration of a resolution granting a petition and setting public hearing dates for the voluntary
annexation into the City for 0.415 acres of Right of Way, more or less, in the Joseph P. Pulsifer Survey
and Clement Stubblefield Survey, for CR 265 Right of Way — Bobby Ray, AICP, Director Planning
and Development and Edward G. Polasek, AICP, Principal Planner
3. Consideration of a resolution granting a petition and setting public hearing dates for the voluntary
annexation into the City for 5.772 acres of Right of Way, more or less, in the Joseph P. Pulsifer
Survey, for Wolf Ranch Parkway Right of Way — Bobby Ray, AICP, Director Planning and
Development and Edward G. Polasek, AICP, Principal Planner
4. Consideration of a resolution granting a petition and setting public hearing dates for the voluntary
annexation into the City for 650.22 acres, more or less, in the Frederick Foy Survey and Daniel Moore
Survey, located south of the future Ronald Reagan Boulevard and west of Sun City Boulevard, for Sun
City Northern Lands — Bobby Ray, AICP, Director Planning and Development and Edward G.
Polasek, AICP, Principal Planner
City Council Agenda/May 9, 2006
Page 2 of 5 Pages
Legislative Regular Agenda
Council will individually consider and possibly take action on any or all of the following items:
P Discussion and possible action regarding review of the City Council's current policy on Community/Social
Service Funding and its current Funding Guidelines for Social Service Funding — Farley Snell,
Councilmember
Q Discussion and possible action to direct City Staff to review Chapter 8.32 of the Code of Ordinances relating
to "Smoking in Public Places" and to delete the section pertaining to exemptions — Councilmember Ben
Oliver
R Consideration of a resolution ordering Atmos Energy Mid -Tex Division to show cause regarding the
reasonableness of its existing natural gas distribution rates within the City; selecting attorneys and
consultants; making other findings and provisions related to the subject; and declaring an effective date —
Jim Briggs, Assistant City Manager for Utility Operations
S Consideration of a resolution authorizing the suspension of the effective date until July 14, 2006, for the gas
reliability infrastructure program adjustments for calendar year 2005 proposed by Atmos Energy
Corporation's Mid -Tex Division; authorizing the Citys participation in a coalition of cities known as Atmos
Texas Municipalities ("ATM"); selecting lawyers and rate experts; and making other findings and provisions
related to the subject; and declaring an effective date — Jim Briggs, Assistant City Manager for Utility
Operations
T Second Readings/Public Review Final Plats
1. Second Reading of an Ordinance Amending Chapter 2.100 of the Code of Ordinances repealing
provisions relating to the Economic Development Commission and establishing a new Economic
Development Advisory Board; stating the number, term and qualifications of board members;
requiring an operating plan; stating the purpose of the Board; describing the reporting structure for the
Board; and approving the Board's 2006 Operating Plan — Mark Thomas, Economic Development Director
and Paul Brandenburg, City Manager
2. Second Reading of an Ordinance amending Chapter 12.40. of the Code of Ordinances of the City of
Georgetown entitled City Cemeteries — Paul E. Brandenburg, City Manager
3. Second Reading of an ordinance amending Title 10 of the Code of Ordinances relating to vehicles,
adding a new subsection 10.04.080 titled Vehicle Idling — Tom Yantis, Assistant City Manager
4. Second Reading of an Ordinance Amending the following Sections of the Unified Development Code:
1.03.C. -"Applicability", 1.03.D. -"Applicability", Table 1.04.040 -"Zoning District Names and
Standards Changes", Table 2.01.020 - "Summary of Review Authority", 2.02.010.B.1.d. — "Director of
Planning and Development Services", 2.02.010.B.1.e. —"Director of Planning and Development
Services", 2.02.040.8. — "Building Official", 3.09.070 —"Site Plan Review", 3.12.040 —"Master Sign
Plan", 3.13.010 —"Certificate of Design Compliance", 3.13.020 — —Certificate of Design Compliance",
Table 4.01.010 —'Zoning Districts", 4.04.020.C. —"Non -Residential Districts", 4.04.020.H. —"Non -
Residential Districts, 4.04.020.1. -"Non-Residential Districts, 4.04.030.A.6.a. —"Special Districts",
4.05.040.D.11 —"SP Standards for Williams Drive F.M. 2338),4.06.010.F. —"Downtown Overlay
District Standards", Table 5.01.020 —"Types of Uses% 6.02.010 — "Residential Development
Standards", Table 6.02.030 —"Housing Type Dimensional Standards", Table 6.03.020 —'Non -
Residential Dimensional Standards", 6.03.040.8.1. —"Non -Residential Lot Dimensions Interpretations
and Exceptions", 7.03.020.E.1. —Requirements for Residential Housing Types", 7.03.060 —"Boundary
Walls for Residential Subdivisions", Table 9.02.030.A. —"Off Street Parking Requirements",
9.02.060.H. —"Alternative Parking Plans in the Downtown Overlay District", 10.03.O10.A. —"Exempt
Signs", 10.03.020.H: "Provisionally Exempt Signs", Table 10.06.010 —"Sign Dimensional Standards",
10.07.010 —"Private Property", 11.02.010.A. —"Impervious Cover Limitation Established", 12.02.020.1.
—"General Requirements", 13.01.050 —"Subdivision Development Exemption", 13.04.070 —"Utilities in
Rural Subdivision", 13.06.030 —'Sanitary Sewer System", 14.04.010 —"Compliance for Nonconforming
Structures", 16.03.0501. —"Commercial Use Categories", and 16.04 —'Definition of Uses"— Bobby
Ray, AICP, Director Planning and Development
5. Second Reading of an Ordinance Amending Chapter 8 of the Unified Development Code (UDC)
pertaining to "Landscaping and Buffering"-- Bobby Ray, AICP, Director Planning and Development
City Council Agenda/May 9, 2006
Page 3 of 5 Pages
6. Second Reading of an Ordinance on a Comprehensive Plan Amendment to change the Future
Land Use from Commercial, Mixed, and Residential to TOD Mixed Use Area for portions of several
properties in the William Addison Survey and L.J. Dyches Survey to be known as the TOD Mixed Use
Area, located around the intersection of Inner Loop and Maple Street and change the Thoroughfare
Plan to add a light rail line along Maple Street for several properties in the William Addison Survey, J.
Robertson Survey, and J. Mott Survey, located along the proposed Maple Street Extension south of
inner loop to the southernmost limit of the Georgetown ETJ — Edward G. Poiasek, AICP, Development
Planner and Bobby Ray, AICP, Director Planning and Development
7. Second Reading of an Ordinance Rezoning Legend Oaks Section 11, Lots 1 through 6 from RS,
Residential Single -Family and AG, Agriculture to G1, Local Commercial located on the south side of
State Highway 29, east of River Chase Boulevard — Bobby Ray, AICP, Director Planning and
Development
8. Second Reading of an Ordinance on a Comprehensive Plan Amendment for 1222.6 acres in the
Fredrick Foy and Lewis P. Dyches Surveys to be known as the Cowan Springs development, located
north and west of Sun City Georgetown, to amend the Future Land Use Plan for 213.4 acres from
Residential to Office/Retail/Commercial use, 60.0 acres from Residential to Mixed Use and 15.0 acres
of Williams Drive Mixed Use and 19.4 acres of Industrial to Residential, and to amend the Intensity
Plan from Level I and Level 2 to 757.5 acres at Level 3, 60.0 acres at Level 4, and 213.4 acres at
Level 6 — Edward G. Polasek, AICP, Development Planner and Bobby Ray, AICP, Director Planning
and Development.
9. Second Reading of an Ordinance Rezoning from AG — Agricultural to PUD - Planned Unit
Development for 22.537 acres in the Fredrick Foy Survey to be known as Sun City Georgetown,
Neighborhood Forty -Two, located north of Neighborhood 44 and Dry Creek Boulevard, west of Sun
City Boulevard — Melissa McCollum, AICP, Development Planner and Bobby Ray, AICP, Director
Planning and Development
10. Consideration and possible action on a Public Review Final Plat for 22.537 acres in the Fredrick Foy
Survey to be known as Sun City Georgetown, Neighborhood Forty -Two, located north of
Neighborhood 44 and Dry Creek Boulevard, west of Sun City Boulevard. — Melissa McCollum, AICP,
Development Planner and Bobby Ray, AICP, Director Planning and Development
11. Second Reading of an Ordinance Rezoning from AG — Agricultural to PUD - Planned Unit
Development for 34.846 acres in the Fredrick Foy Survey to be known as Sun City Georgetown,
Neighborhood Forty -Three, located north of Neighborhood 44 and Dry Creek Boulevard, west of
Neighborhood Forty -Two — Melissa McCollum, AICP, Development Planner and Bobby Ray, AICP,
Director Planning and Development
12. Consideration and possible action on a Public Review Final Plat for 34.846 acres in the Fredrick Foy
Survey to be known as Sun City Georgetown, Neighborhood Forty -Three, located north of
Neighborhood 44 and Dry Creek Boulevard, west of Neighborhood Forty Two. — Melissa McCollum,
AICP, Development Planner and Bobby Ray, AICP, Director Planning and Development
13, Second Reading of an Ordinance Rezoning from AG — Agricultural to PUD - Planned Unit
Development for 46.705 acres in the Fredrick Foy Survey to be known as Sun City Georgetown,
Neighborhood Forty -Six, located west of Neighborhood Forty -Three, north of Dry Creek Boulevard,
and west of Sun City Boulevard -- Melissa McCollum, AICP, Development Planner and Bobby Ray,
AICP, Director Planning and Development
14. Consideration and possible action on a Public Review Final Plat for 46.705 acres in the Fredrick Foy
Survey to be known as Sun City Georgetown, Neighborhood Forty -Six, located west of
Neighborhood Forty -Three, north of Dry Creek Boulevard, and west of Sun City Boulevard. — Melissa
McCollum, AICP, Development Planner and Bobby Ray, AICP, Director Planning and Development
Public Hearings for Voluntary Annexation
1. Public Hearing on the voluntary annexation into the City for 650.22 acres, more or less, in the
Frederick Foy Survey and Daniel Moore Survey, located south of the future Ronald Reagan Boulevard
and west of Sun City Boulevard, for Sun City Northern Land — Bobby Ray, AICP, Director Planning
City Council Agenda/May 9, 2006
Page 4 of 5 Pages
and Development and Edward G. Polasek, AICP, Principal Planner
2. Public Hearing on the voluntary annexation into the City for 370.883 acres, more or less, in the David
Wright Survey, Williams Roberts Survey and John Berry Survey, east of Airport Road and south and
west of Berry Creek, for Buie Ranch — Bobby Ray, AICP, Director Planning and Development and
Edward G. Polasek, AICP, Principal Planner
3. Public Hearing on the voluntary annexation into the City for 0.415 acres of Right of Way, more or less,
in the Joseph P. Pulsifer Survey and Clement Stubblefield Survey, for CR 265 Right of Way -- Bobby
Ray, AICP, Director Planning and Development and Edward G. Polasek, AICP, Principal Planner
4. Public Hearing on the voluntary annexation into the City for 5.772 acres of Right of Way, more or less,
in the Joseph P. Pulsifer Survey, for Wolf Ranch Parkway Right of Way — Bobby Ray, AICP,
Director Planning and Development and Edward G. Polasek, AICP, Principal Planner
V First Readings
1. First Reading of an ordinance amending the 2005/06 Annual Operating Plan Element (Budget) for
various mid -year adjustments relating to grants, projects, and capital improvements -- Micki Rundell,
Director of Finance and Administration
2. First Reading of an ordinance revising several provisions in Chapter 14.12 of the City Code of
Ordinances relating to the City's Cable Television Franchise — Patricia E. Cads, City Attorney
3. First Reading of an ordinance amending Chapter 10.16 of the Code of Ordinances regarding parking to
establish a "residential parking zone" on portions of E. 7th Street, E. 8th Street, Olive Street, and
Smith Creek Road; and directing the City Manager to erect appropriate signs indicating such zones —
Tom Yantis, Assistant City Manager
W Consideration and possible action to accept and approve the recommendations from the Council
Compensation Committee — Sandra D. Lee, City Secretary
ill Certificate of Posting
I, Sandra Lee, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice of
Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public at all
times, on the day of , 2006, at , and remained so posted for at
least 72 continuous hours preceding the scheduled time of said meeting.
Sandra Lee, City Secretary
City Council Agenda/May 9, 2006
Page 5 of 5 Pages
` J•
Council Meeting Date: May 9, 2006 Item No. R
AGENDA ITEM COVER SHEET
SUBJECT.
A RESOLUTION BY THE CITY COUNCIL OF GEORGETOWN ,TEXAS ORDERING ATMOS ENERGY,
MID-TEX DIVISION TO SHOW CAUSE REGARDING THE REASONABLENESS OF ITS EXISTING
NATURAL GAS DISTRIBUTION RATES WITHIN THE CITY; SELECTING ATTORNEYS AND
CONSULTANTS; MAKING SUCH OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT;
AND DECLARING AN EFFECTIVE DATE.
ITEM SUMMARY:
Atmos Energy purchased TXU Gas in September 2004. The TXU Gas service territory became Atmos
Energy Mid -Tex. The purchase of TXU Gas almost doubled the size of Atmos. Although base rates were set
for the Mid -Tex area in May 2004, rates have never been set for the Mid -Tex area under the ownership of
Atmos—an entirely different company from TXU Gas. The acquisition was supposed to produce substantial
savings in operating costs. For this reason it is believed that Atmos is experiencing excessive earnings.
The Gas Utility Regulatory Act authorizes local regulatory authorities (municipalities) to initiate rate
proceedings in order to make a determination concerning the reasonableness of existing rates. This resolution
orders Atmos to file a complete rate filing package with the City before May 31, 2006. The filing of such a rate
filing package is necessary in order to properly set rates. Atmos will follow the criteria set forth in the rate
filing package ordinances of the Cities of Gatesville and Longview. Similar show cause proceedings have
been initiated in Kentucky, Tennessee and in the City of Dallas.
Gas utilities are under the same obligation to reimburse reasonable rate case expenses as in general
rate cases, which are initiated by the utility.
SPECIAL CONSIDERATIONS:
FINANCIAL IMPACT:
ATTACHMENTS:
Resolution
Submitted By: U Jim Briggs U U U
Assistant City Manager for Utility Operations
l
RESOLUTION NO.
A RESOLUTION BY THE CITY OF GEORGETOWN, TEXAS
ORDERING ATMOS ENERGY, MID-TEX DIVISION TO SHOW
CAUSE REGARDING THE REASONABLENESS OF ITS
EXISTING NATURAL GAS DISTRIBUTION RATES WITHIN
THE CITY; REQUIRING ATMOS ENERGY, MID-TEX DIVISION,
TO SUBMIT A RATE FILING PACKAGE BASED ON A TEST
YEAR ENDING DECEMBER 31,2005; AUTHORIZING THE CITY
TO JOIN WITH OTHER CITIES KNOWN AS THE ATMOS
TEXAS MUNICIPALITIES ("ATM") TO DIRECT THE
ACTIVITIES OF LAWYERS AND CONSULTANTS;
AUTHORIZING THE HIRING OF ATTORNEYS AND
CONSULTANTS; DIRECTING THAT SUCH FILING SHALL BE
MADE PRIOR TO MAY 31, 2006; REQUIRING
REIMBURSEMENT OF REASONABLE LEGAL AND
CONSULTANT EXPENSES; FINDING THAT THE MEETING
COMPLIES WITH THE OPEN MEETINGS ACT; MAKING SUCH
OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act
("GURA") and has original jurisdiction over the gas utility rates of Atmos Energy, Mid -Tex
Division ("Atmos"); and
WHEREAS, the City has the authority under §§ 103.001 and 104.151, GURA, to initiate
a proceeding to determine whether the existing rates of a gas utility are unreasonable or in any
way in violation of any provision of law; and
WHEREAS, a different company, known as TXU Gas, had been the natural gas
distribution provider for the City until the system was purchased by Atmos Energy Corporation
in September, 2004; and
WHEREAS, due to the acquisition by Atmos Energy Corporation there is a need to
determine if Atmos' rates are excessive; and
WHEREAS, Atmos should be required to show cause whether its rates and its overall
rate of return are reasonable; and
WHEREAS, a coalition of cities known as Atmos Texas Municipalities ("ATM") has
been organized to review the reasonableness of rates and services in the Mid -Tex region; and
WHEREAS, ATM was previously the Alliance of TXU Municipalities and it operated as
a coalition of cities for most of the last ten years; and
WHEREAS, the City benefits from the expertise and the efficiencies of ATM in
reviewing the reasonableness of Atmos' rates and services; and
WHEREAS, under GURA § 103.022 Atmos is required to reimburse the reasonable rate
case expenses of the ATM cities.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF GEORGETOWN, TEXAS THAT:
Section 1. The facts and recitations contained in the preamble of this resolution are
hereby found and declared to be true and correct, and are incorporated by reference herein and
expressly made a part hereof, as if copied verbatim. The City Council hereby finds that this
resolution implements the Utility Policy Statement 11.00 of the Century Plan - Policy Plan
Element, which states: "City owned, sponsored or managed utilities are competitively priced and
provide safe, adequate and reliable services to all customers. " and further finds that the adoption
of this resolution is not inconsistent or in conflict with any other Century Plan Policies, as
required by Section 2.03 of the Administrative Chapter of the Policy Plan.
Section 2. Atmos is hereby directed to show cause regarding the reasonableness of its
existing natural gas distribution rates within the City. A rate filing package consistent with the
rate filing package ordinances of the Cities of Gatesville and Longview shall be filed by May 31,
2006, based upon a test year ending on December 31, 2005.
Section 3. In the event that Atmos claims that it is entitled to an increase in rates,
Atmos shall provide public notice in a manner which is consistent with the public notice
ordinances for the Cities of Leander, Greenville, Burnet, Corsicana, Manor, Bertram, Gatesville,
Longview and Denton.
Section 4. The City shall participate with other cities in the aforementioned
proceedings as part of a coalition of cities known as the Atmos Texas Municipalities ("ATM")
and ATM shall select the experts to work with special counsel.
Section 5. Atmos shall reimburse within 30 days after submission the City's
reasonable monthly costs associated with the City's activities related to the rate review or in
related proceedings.
Section 6. Subject to the right to terminate employment at any time, the City
authorizes Jim Boyle, Alfred R. Herrera, and Daniel Lawton to act as special counsel with regard
to rate proceedings involving Atmos before the City, the Railroad Commission of Texas or any
court of law.
Section 7. 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 8. The Mayor is hereby authorized to sign this Resolution and the City
Secretary to attest thereto on behalf of the City of Georgetown.
Section 9. A copy of this resolution shall be sent to Mr. Richard Reis, Atmos Energy
Corporation, 5420 LBJ Freeway, Suite 1823, Dallas, Texas 75240 and to Mr. Jim Finley, City
Attorney, City of Longview Texas at fax number 903-239-5539.
RESOLVED this day of . 2006.
ATTEST:
THE CITY OF GEORGETOWN:
Sandra Lee, City Secretary Gary Nelon, Mayor
APPROVED AS TO FORM:
Patricia E. Carts
BROWN & CARIS, LLP, City Attorney
Council Meeting Date: May 9, 2006 Item No. �S
AGENDA ITEM COVER SHEET
SUBJECT:
A RESOLUTION OF THE CITY OF GEORGETOWN, TEXAS AUTHORIZING THE SUSPENSION
OF THE EFFECTIVE DATE UNTIL JULY 14, 2006 FOR THE GAS RELIABILITY INFRASTRUCTURE
PROGRAM ADJUSTMENTS FOR CALENDAR YEAR 2005 PROPOSED BY ATMOS ENERGY
CORPORATION'S MID-TEX DIVISION; AUTHORIZING THE CITY'S PARTICIPATION IN A
COALITION OF CITIES KNOWN AS ATMOS TEXAS MUNICIPALITIES ("ATM"); SELECTING
LAWYERS AND RATE EXPERTS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO
THE SUBJECT; AND DECLARING AN EFFECTIVE DATE.
ITEM SUMMARY:
Atmos is seeking an increase of $8.5 million for residential customers and an increase of $2.6
million for commercial customers for "infrastructure" improvements for calendar year 2005. The monthly
increase in the customer charge for residential customers is 51 cents and for commercial customers it is
$1.75. This is the third increase in the last twelve months.
The resolution calls for the City to participate with other cities who have worked together as a
coalition of cities under the name Atmos Texas Municipalities ("ATM"). Prior to the purchase of TXU Gas
the coalition was known as the Alliance of TXU Municipalities. The coalition has been extremely effective
over the last ten years in being an advocate for cities at the Railroad Commission and in preserving the
City's municipal jurisdiction.
The ATM Steering Committee recommends that the City suspend the effective date and adopt
this resolution. ATM does not anticipate any effect on the City's funds in order to review and participate
with the other ATM cities with regard to the Atmos' filing. ATM will seek reimbursement of rate case
expenses from Atmos during the remand of the ATM adjustment proceedings from District Court. It is
important to participate in this proceeding so that the City does not forfeit rights as regulatory authorities
which are currently in review on appeal.
SPECIAL CONSIDERATIONS:
FINANCIAL IMPACT
COMMENTS:
ATTACHMENTS:
Resolution
Submitted By:�f Jim Briggs, U (l 0
l/ Assistant City Manager for Utility Operations
RESOLUTION NO.
RESOLUTION OF THE CITY OF GEORGETOWN, TEXAS
AUTHORIZING THE SUSPENSION OF THE EFFECTIVE
DATE UNTIL JULY 14, 2006 FOR THE GAS RELIABILITY
INFRASTRUCTURE PROGRAM ADJUSTMENTS FOR
CALENDAR YEAR 2005 PROPOSED BY ATMOS ENERGY
CORPORATION'S MID-TEX DIVISION; AUTHORIZING
PARTICIPATION IN A COALITION OF CITIES KNOWN
AS ATMOS TEXAS MUNICIPALITIES ("ATM");
AUTHORIZING THE HIRING OF LAWYERS AND RATE
EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION
TO THE FULL EXTENT PERMITTED BY LAW AT THE
RAILROAD COMMISSION OF TEXAS WITH REGARD
TO; REQUIRING THE REIMBURSEMENT OF
MUNICIPAL RATE CASE EXPENSES; FINDING THAT
THE MEETING COMPLIED WITH THE OPEN
MEETINGS ACT; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE
WHEREAS, on or about March 31, 2006 the Atmos Energy Corporation's Mid -
Tex Division ("Atmos Energy") filed an application with the City to increase gas rates for
its Gas Reliability Infrastructure Program ("GRIP") for calendar year 2005 pursuant to
Section 104.301 of the Gas Utility Regulatory Act("Act"); and
WHEREAS, due to the ratemaking complexity of Section 104.301 of the Act and
the fact that this is the first application for recovery under that section of the Act; it is
therefore necessary to engage the expertise of lawyers and consultants who specialize in
ratemaking proceedings before regulatory authorities to assist the City as provided for in
Section 103.022 of the Act; and
WHEREAS, given the complexity and the need to carefully review the proposed
GRIP adjustment it is necessary to suspend the effective date for implementing the GRIP
adjustment until at least July 14, 2006 in order to allow the City's rate experts sufficient
time to determine the merits of Atmos Energy's proposed GRIP adjustment; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating Atmos Energy's request for a GRIP adjustment it
makes sense to coordinate the City's efforts with a coalition of similarly situated
municipalities; and
WHEREAS, a coalition of municipalities, known as the Alliance of TXU
Municipalities ("ATM") has been active in gas utility ratemaking proceedings; and
WHEREAS, in light of the sale of TXU Gas to Atmos Energy, the coalition
known as the Alliance of TXU Municipalities is now known as the Atmos Texas
Municipalities ("ATM"); and
WHEREAS, the City will join with other cities participating in ATM in a
steering committee in order to coordinate the hiring and direction of legal counsel and
consultants working on behalf of ATM and the City; and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF GEORGETOWN, TEXAS THAT:
Section 1. The facts and recitations contained in the preamble of this
resolution are hereby found and declared to be true and correct, and are incorporated by
reference herein and expressly made a part hereof, as if copied verbatim. The City
Council hereby finds that this resolution implements the Utility Policy Statement 11.00 of
the Century Plan - Policy Plan Element, which states: "City owned, sponsored or
managed utilities are competitively priced and provide safe, adequate and reliable
services to all customers. " and further finds that the adoption of this resolution is not
inconsistent or in conflict with any other Century Plan Policies, as required by Section
2.03 of the Administrative Chapter of the Policy Plan.
Section 2. The effective date for the proposed GRIP adjustments by Atmos
Energy, and the tariffs related thereto, are hereby suspended until July 14, 2006 in order
to complete the review and investigation by City's experts.
Section 3. The City is authorized to join with other cities in a coalition of
cities known as the Atmos Texas Municipalities ("ATM") with the understanding that the
steering committee of ATM will provide direction and guidance to the lawyers who are
representing said cities.
Section 4. The City employs Jim Boyle, Alfred Herrera and Daniel Lawton as
special counsel to represent the City with regard to the proposed GRIP adjustments of
Atmos Energy before local and state regulatory authorities and any court of law and
authorizes special counsel to employ such rate experts as are recommended by the ATM
Steering Committee.
Section 5. The City, in coordination with the Steering Committee, shall
review the invoices of the lawyers and rate experts for reasonableness before submitting
the invoices to Atmos Energy for reimbursement.
Section 6. City's legal representatives shall have the right to obtain additional
information from Atmos Energy through the service of requests for information, which
shall be responded to within twenty (14) days of receipt of such requests for information.
Section 7. Atmos Energy shall reimburse the City, through the designated
representative city of the Steering Committee, for the reasonable costs of attorneys and
consultants and expenses related thereto, upon the presentation of invoices reviewed by
the Steering Committee.
Section 8. The City Secretary shall notify Atmos Energy of this resolution by
sending a copy of same to Mr. Richard Reis, Atmos Energy Corporation, 5420 LBJ
Freeway, Suite 1823, Dallas, Texas 75240-2601 and ATM shall be notified by sending a
copy of this resolution to Mr. Jim Finley, City Attorney for the City of Longview by fax
to (903) 239-5539.
Section 9. The meeting at which this resolution was approved was in all
things conducted in strict compliance with the Texas Open Meetings act, Texas
Government Code, Chapter 551.
Section 10. The Mayor is hereby authorized to sign this Resolution and the
City Secretary to attest thereto on behalf of the City of Georgetown.
Section 11. This resolution shall become effective from and after its passage.
RESOLVED this day of . 2006.
ATTEST:
THE CITY OF GEORGETOWN:
Sandra Lee, City Secretary Gary Nelon, Mayor
APPROVED AS TO FORM:
Patricia E. Carts
BRowN & CARIS, LLP, City Attorney
