HomeMy WebLinkAbout2014.05.06 City Council AgendaCity Council
City of University Park
Meeting Agenda - Final
City Hall
3800 University Blvd.
University Park, TX 75205
Council Chamber5:00 PMTuesday, May 6, 2014
EXECUTIVE SESSION
3 - 4 P.M. The City Council may adjourn into closed session under the provisions of
Section 551.071 (2) of the Texas Government Code for a private consultation with the
City Attorney regarding legal means available to the City for abatement of public
nuisances. No action will be taken. Executive Conference Room, 1st Floor, City Hall.
PRE-MEETING WORK SESSION
4 - 5 P.M. City Council will meet in open work session to receive agenda item briefings
from staff. No action will be taken. Council Conference Room, 2nd Floor, City Hall.
TO SPEAK ON AN AGENDA ITEM
Anyone wishing to address the Council on any item must fill out a green “Request to
Speak” form and return it to the City Secretary. When called forward by the Mayor,
before beginning their remarks, speakers are asked to go to the podium and state their
name and address for the record.
I.CALL TO ORDER
A.INVOCATION: Councilmember Dawn Moore
B.PLEDGE OF ALLEGIANCE: Councilmember Dawn Moore / Boy Scouts
C.INTRODUCTION OF COUNCIL: Mayor W. Richard Davis
D.INTRODUCTION OF STAFF: City Manager Robbie Corder
II.AWARDS AND RECOGNITION
A. Recognize Liz Spector for her service to the City of University Park as City
Secretary
B. Recognize the Finance Department for Certificate of Achievement for Excellence in
Financial Reporting, FY2012
III.CONSENT AGENDA
Page 1 City of University Park Printed on 5/2/2014
May 6, 2014City Council Meeting Agenda - Final
14-066 Consider and act on the award of a janitorial services contract for City facilties
Staff Report
Bid Tabulation
Attachments:
14-062 Consider and act on an amendment to the salary ordinance
Staff Report
Draft Ordinance
Attachments:
14-063 Consider and act on the purchase of an in-car camera system for Police
vehicles
Staff Report
Vendor Quote
Attachments:
14-064 Consider and act on a resolution denying the 2014 Atmos Energy rate increase
request
Staff Report
Resolution
Attachments:
IV.MAIN AGENDA
14-072 Receive report from Youth Advisory Commission on 2013-14 Activities
Staff ReportAttachments:
14-068 Receive FY2013 Comprehensive Annual Financial Report (CAFR)
Staff ReportAttachments:
V.PUBLIC COMMENTS
Anyone wishing to address an item not on the Agenda should do so at this time. Please
be advised that under the Texas Open Meetings Act, the Council cannot discuss or act
at this meeting on a matter that is not listed on the Agenda . However, in response to an
inquiry, a Council member may respond with a statement of specific factual information
or a recitation of existing policy. Other questions or private comments for the City
Council or Staff should be directed to that individual immediately following the meeting.
VI.ADJOURNMENT
Page 2 City of University Park Printed on 5/2/2014
3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644
C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@5005814B\@BCL@5005814B.docx 1:35 PM 05/01/14
AGENDA MEMO
5/6/2014Agenda
TO:Honorable Mayor and City Council
FROM:Christine Green, Purchasing Agent
SUBJECT:CONSIDER AND ACT: On the award of Bid #14-03, Best Value Bid for
Janitorial Services
BACKGROUND:
With the completion of our initial four-year janitorial services contract at City Hall, we
solicited new bids for janitorial services at all five City facilities: City Hall, the Peek
Center, 2525 University,the Library, and the Holmes Aquatic Center. All five facilities
are currently maintained by United Building Maintenance Enterprise, Inc. (UBM) at a
total annual cost of $93,942.48.
We specified that thiswas a “Best Value Bid,” so we were able to evaluate the bids with
other criteria besides price. Gerry Bradley, Director of Parks, Tammy Watson, Parks
Superintendent, and I reviewed and scored the bids according to the following criteria
specified in the bid:
1.Work Plan –The proposed use of personnel, supervision and types of
equipment that, in the City’s judgment, is sufficient to meet the services
requirements (50 Points);
2.Work Stability –References with contracts of similar size, complexity, and type
during past three (3) years. Examples:municipalities, high security areas, etc.
(30 points);
3.Total Purchase Price (20 Points).
UBMwas our unanimous first choice with a high average score of 93. UBM’s bid price
for janitorial service at all five City facilities is $97,119.88. While their pricing is higher
than several other qualified bidders we considered, we feel that UBM’s history of
excellent service to the City outweighs any cost differential. Additionally, continuing with
UBM allows janitorial services to continue uninterrupted and with no requirement for
training by City staff. This contract is a one year fixed price contract with four optional
one year renewals.
RECOMMENDATION:
Staff recommends award of Bid #14-03, Best Value Bid for Janitorial Services, to UBM in
the annual amount of $97,119.88.
TABULATION
BID #14-03, BEST VALUE BID FOR JANITORIAL SERVICES AT ALL CITY FACILITIES
OPENED 10:00 A.M., APRIL 1, 2014
Average Std Cost
Company Score Location 71,046 Sq Ft/Yr
1.UBM Enterprise, Inc.93 11102 Ables Ln., Dallas, TX 75229 $97,119.88
2.Global Building Maintenance 83 2001 W. Northwest Hwy., #130, Dallas, TX 75220 $93,537.48
3.Britton Building Maintenance 74 222 W. Las Colinas Blvd., #547E, Irving, TX 75039 $87,064.32
4.Oriental Building Services, Inc.73 2526 Manana Dr., Suite 208, Dallas, TX 75220 $100,762.32
5.CareMaster Building Services 70 10031 Monroe Dr. Suite 201, Dallas, TX 75229 $97,714.64
6.Varsity Facility Services 69 3707 Constitution Drive, Grand Prairie, TX 75052 $89,937.00
7.CTJ Maintenance, Inc.69 6565 N. MacArthur Blvd., #225, Irving, TX 75039 $83,640.00
8.Evelyn's Professional Janitorial 68 1617 North Central Expressway, Plano, TX 75075 $72,795.00
9.James Enterprise 67 706 N. Hwy 67, Cedar Hil, TX 75104 $59,244.00
10.G2 Premier Staff, LLC 66 400 E. Las Colinas Blvd., Ste. 750, Irving, TX 75039 $70,739.21
11.American Facility Services 63 1325 Union Hill Industrial Court, Suite A, Alpharetta, GA 30004$66,499.06
12.Member's Building Maintenance 60 11363 Denton Drive, #127, Dallas, TX 75229 $50,718.52
13.Crew One Cleaning 44 9717 Waterview Pkwy., Rowlett, TX 75089 $130,724.64
14.Sonlight Cleaning 28 4013 Clay Ave., Suite C, Dallas, TX 76117 $227,844.52
3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644
C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@48050858\@BCL@48050858.docx 1:20 PM 05/01/14
AGENDA MEMO
5/6/2014Agenda
TO:Honorable Mayor and City Council
FROM:Luanne Hanford, Director of Human Resources
SUBJECT:Amendment to Salary Ordinance
BACKGROUND:
There have been a number of personnel changes since the beginning of FY2013-14, and I
am bringing this ordinance to amend the salary ordinance before you at this time so the
changes will be properly reflected. The changes are as follows:
1.Change the salary for the City Manager. With Bob Livingston’s retirement, the
new city manager, Robbie Corder, will be making a different salary.
2.A year-round Aquatics Supervisor and Events Coordinator position was added to
the Park Department after the budget was adopted.
3.The CIP Coordinator/Project Manager position has been eliminated. The
employee in that position passed away and is being replaced by either a Civil
Engineer I or Civil Engineer II.
4.A Civil Engineer I position has been added. This is not a new position; this
replaces the CIP Coordinator /Project Manager position.
5.A Civil Engineer II position has been added. This is not a new position. The
Engineering Division will hire either a Civil Engineer I or Civil Engineer II to
replace the former CIP Coordinator/Project Manager position.
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY OF UNIVERSITY PARK, TEXAS, AMENDING
THE PAY PLAN FOR EMPLOYEES OF THE CITY FOR FY 2013-2014BY
ELIMINATING THE POSITIONSOF ASSISTANT CITY MANAGERAND CIP
COORDINATOR/CONSTRUCTION MANAGER;PROVIDING A SALARY
RANGEFOR CITY MANAGER; ADDING THE POSITIONS AND SALARY
RANGES FOR AQUATICS SUPERVISOR, CIVIL ENGINEER I AND CIVIL
ENGINEER II;AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF UNIVERSITY
PARK, TEXAS:
SECTION 1. Thatas provided in Chapter 9, Article 9.03.001of the Code of
Ordinances, a pay plan to compensate employees of the City of University Park for FY
2013-2014wasadopted by Ordinance 13/030.
SECTION 2. That the pay plan for FY 2013-2014is hereby amended in part to
eliminatethe position of Assistant City Manager, toprovide a revised salary range for the
position of City Manager, and to add the positions and salary ranges for Aquatics
Supervisor, CIP Coordinator/Construction Manager, Civil Engineer I and Civil Engineer
IIby amending Ordinance 13/030in part as follows:
“1.PAYPLAN BY CATEGORIES:
TITLE POINTS MIN.MARKET MAX.
CITY MANAGER E 950 14,334
. . .
. . .
CIVIL ENGINEER II E406 5833 6752 8063
. . .
CIVIL ENGINEER I E 332 5172 5987 7149
. . .
. . .
AQUATICS SUPERVISOR E 245 4075 4717 5633
. . .”
SECTION 3. This ordinance shall take effect immediately from and after its
passage as the law and charter in such cases provide.
DULY PASSED by the City Council of the City of University Park, Texas, on the
6thday of May2014.
APPROVED:
___________________________________
W. RICHARD DAVIS, MAYOR
APPROVED AS TO FORM:ATTEST:
_______________________________________________________________
CITY ATTORNEY(65824) CHRISTINE GREEN, CITY SECRETARY
3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644
C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@7405ED78\@BCL@7405ED78.docx 3:35 PM 04/29/14
AGENDA MEMO
5/6/2014Agenda
TO:Honorable Mayor and City Council
FROM:Greg Spradlin, Chief of Police
SUBJECT:Purchase of In-Car Camera System for Police Vehicles
BACKGROUND:
In December of 2009, staffperformed an update of the recording devicesin the vehicles. While
the solution has functioned well, it has reached the end of its functionality. Additionally, a recent
letter from the vendor abruptly endsrepair support for these devicessince the product is
outdated.
Staff from the Police, Information Services and Equipment Services Departments hasreceived
demonstrations and reviewedseveral market leading products. All three departments agreethat
the solution offered by L-3 Mobile Visionfits the needs of the City better than others discussed.
The proposed solution will enable wireless, secure and automatic downloadof recordings, High
Definition (HD) videoquality, and superior tools for the review and export of videoevidence. This
vendor also has capabilities to provide a solution which will integrate interview room video and
“body camera” devices into a single platform. Additionally, L-3 Mobile Vision operatesa local
repair facilitywhich willprovide local support for the system and training on the installation
process.
RECOMMENDATION:
In March, 2012 Information Services Staff added to the Capital Projects Budget funding to replace
this system. Theoriginal project was scheduled to be completed in Fiscal Year 2014 and its
anticipated cost, based on support from Digital Safety, was $78,000. Being that this equipment is
a vital part of the modern Police Vehicle, the project was moved from the CapitalProjects Budget
and plans made to fund the project from the Equipment Services Fund.
After selecting the L-3 Mobile Vision product, staff obtained the attached quote in the amount of
$110,631.00. This quote includes the equipment necessary to fully outfit 13 vehicles as well as
the server hardware and software required to support this system. Installation services will be
performed by our own Equipment Services Staff. This pricing is based on the HGAC purchasing
contract which satisfies competitive bidding requirements.
Staff recommends approval of this purchasebased on the factors outlined above.
April 22, 2014
90 Fanny Rd, Boonton, NJ 07005
T. 800-336-8475 F. 973-257-3024
Number
Date
112898802
QUOTE
Sold To Ship To
University Park Police Department University Park Police Department
Tim Pope Tim Pope
3800 University Boulevard
University Park, TX 75205
3800 University Boulevard
University Park, TX 75205
Phone
Fax
Phone
Fax
214-987-5355
214-987-5350 214-987-5350
214-987-5355
Salesperson TermsShip Via
None
P.O. Number
Von Linavong
Line Qty SKU Description Unit Price Ext.Price Comments
1 5 MVD-AP-N-US-6 $4,475.00$895.00Proxim Assembly, Access Point, Indoor,
802.11n, 1 Radio w/6' cable and
Antenna
2 13 MVD-FB3-V-V-TM $3,575.00$275.00Vehicle Viewer Kit (Trunk Mount) for
use with Flashback 3. Includes
Software, Users manual and 25'
Ethernet cable
3 13 MVD-IR-CAM2 $3,643.25$280.25Backseat Infrared Camera: Backseat
camera for recording prisoner/rear seat
area of vehicle.
4 13 MVD-CRASH-BAT2 $2,574.00$198.00Collision Sensor: Triggers Flashback
DVR into Record Mode in the event of a
collision.
5 1 LSMVDDVDBR141 $5,287.00$5,287.00DVD/Blu Ray Backup Robot with
attached Workstation: 100 Disk Capacity
6 13 LSSWRPRODVR $4,322.50$332.50Software, digital Evidence PRO per DVR
Digital Evidence Software Includes:
Base Module, Intelligent Downloading
Module, Archiver Module, Case Module,
Consumer DVD Module
7 1 MVD-DEP-BT2 $4,450.00$4,450.00Solution Configuration / Training:
System build out and configuration plus
1 day (on-site) training
8 13 MVD-FBHDVS $65,393.25$5,030.25Assembly, Flashback HD Digital Video
System
9 13 MVD-FB3-32GSUP $455.00$35.00Flash Card, 32GB UHS SD, Flashback 3
Upgrade
10 1 LSMVDR625 $15,756.00$15,756.00Hardware Only Rack Server: 25TB
RAID-6 DASD, Dual Quad-Core Intel
Xeon 2.4GHz processors; 16GB RAM;
Red Hat v5 Enterprise Linux
OS/PostgreSql Database; DVD-ROM;
Monitor; Keyboard; Mouse; Card
Reader; 10/100/1000 Base T Switch
Quotation is valid for 60 days from date issued. These commodities, technology or software were exported from the United
States in accordance with the Export Administration regulations. Diversion contrary to US law is prohibited.
State/Local Fees and Taxes are not included.
Page 1 of 204/22/2014 3:49 pm
April 22, 2014
90 Fanny Rd, Boonton, NJ 07005
T. 800-336-8475 F. 973-257-3024
Number
Date
112898802
QUOTE
HGAC Contract Number: EF04-13
Customer to provide own installation of DVR in vehicle
Customer will run CAT5 cables for 5 Access Points
SERVER SPECS
Hardware Only Rack Server 25TB
RAID6 DASD, Dual Quad Core Intel
Xeon 2.4 GHz processors; 16GB RAM;
Red Hat v5 Enterprise Linux OS PostgreSql Database; DVD-ROM;
Monitor; Keyboard; Mouse; Card Reader; Need a 8 port Dell 10/100/1000 Base T Switch
Signing below is in lieu of a formal Purchase Order.
Your signature will authorize acceptance of both pricing and product:
Signed:Dated:
L-3 Shipping Terms are FOB Boonton, NJ. By signing below you agree to
waive your shipping terms and ship this order FOB Boonton, NJ.
Signed:Dated:
SubTotal
Tax
S&H
Total
TBD
109,931.00
110,631.00
700.00
Quotation is valid for 60 days from date issued. These commodities, technology or software were exported from the United
States in accordance with the Export Administration regulations. Diversion contrary to US law is prohibited.
State/Local Fees and Taxes are not included.
Page 2 of 204/22/2014 3:49 pm
3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644
C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@9C05BEAD\@BCL@9C05BEAD.docx 4:49 PM 04/29/14
AGENDA MEMO
5/6/2014Agenda
TO:Honorable Mayor and City Council
FROM:George Ertle, Assistant to the City Manager
SUBJECT:CONSIDER AND ACT: on a resolution denying the 2014 Atmos Energy
rate increase request
BACKGROUND:
The City, along with approximately 164 other cities served by Atmos Energy Mid-
Tex Division (“Atmos Mid-Tex” or “Company”), is a member of the AtmosCities Steering
Committee (“ACSC”). On or about February 28, 2014, Atmos Mid-Tex filed with the City
an application to increase natural gas rates pursuant to the Rate Review Mechanism
(“RRM”) tariff renewed by the City in 2013 as a continuation and refinement of the
previous RRM rate review process. This is the second annual RRM filing under the
renewed RRM tariff.
The Atmos Mid-Tex RRM filing sought a $45.7 million rate increase system-wide
based on an alleged test-year cost of service revenue deficiency of $49 million. Of the
total amount requested, almost $37 million is attributable to the affected cities. The City
worked with ACSC to analyze the schedules and evidence offered by Atmos Mid-Tex to
support its request to increase rates. Although a good faith attempt was made by ACSC
to reach a compromise with Atmos Mid-Tex, an agreement was not reached. In the
absence of an agreement, the ACSC Executive Committee and ACSC’s legal counsel
have recommended that ACSC members adopt the attached Resolutiondenying the
rate increase request.
The RRM tariff was adopted by the City as an alternative to the Gas Reliability
Infrastructure Program (“GRIP”), the statutory provision that allows Atmos to bypass the
City’s rate regulatory authority to increase its rates annually to recover capital
investments. In past years, cities have been able to reach a compromise with Atmos to
reduce the rate impact from the requested RRM increases, and these compromises
have also been lower than the rates that Atmos would have been entitled to under the
GRIP filing. In this case, the Company would have been entitled to an increase from
GRIP of no more than $31.5 million. The magnitude of the requested increase under the
2014 RRM filing, and the wide differences between it and the ACSC consultants’
recommendations made a compromise much more difficult and ultimately impossible.
The Company demanded more than it would be entitled to if it had filed a GRIP case.
For this reason, the ACSC Executive Committee and ACSC legal counsel recommend
that all ACSC Cities adopt the Resolution denying the requested rate change.
3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644
C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@9C05BEAD\@BCL@9C05BEAD.docx 4:49 PM 04/29/14
RRM Background:
The RRM tariff was originally approved by ACSC Cities as part of the settlement
agreement to resolve the AtmosMid-Tex 2007 system-wide rate filing at the Railroad
Commission. In early 2013, the City adopted a renewed RRM tariff for an additional five
years. This is the second RRM filing under the renewed tariff. This filing was made by
agreement less than one year after the first filing in order for the RRM rate-setting
process to hereafter use a calendar year as the test period.
The RRM tariff and the process implementing that tariff were created
collaboratively by ACSC and Atmos Mid-Tex as an alternative to the legislatively-
authorized GRIP surcharge process. ACSC has opposed GRIP because it constitutes
piecemeal ratemaking, does not allow any review of the reasonableness of Atmos’
expenditures, and does not allow participation by cities or recovery of cities’rate case
expenses. In contrast, the RRM process has allowed for a more comprehensive rate
review and annual adjustment as a substitute for GRIP filings. ACSC’s consultants have
calculated that had Atmos filed under the GRIP provisions, it would have received
additional revenues from ratepayers of approximately $31.5 million.
Purpose of the Resolution:
Rates cannot change without the adoption of rate ordinances by cities. No
related matter is pending at the Railroad Commission. The purpose of the Resolution is
to deny the rate increase requested by Atmos. Under the RRM tariff, Atmos may appeal
the rate decision of the cities to the Railroad Commission; such appeal must be filed
within thirty (30) days of the City action.
The RRM tariff also allows Atmos to implement its requested rates effective June
1 while any appeal at the Commission is pending, subject to refunds based upon the
outcome of the appeal. This would represent a monthly increase of approximately $2.02
for the average residential customer, subject to any refund if the Commission reduces
the rates implemented by Atmos. The actual impact will be slightly less than $2.02 for
most residential customers because the Company has indicated it will not appeal and
thus concedes several of the issues raised by Cities. The Resolution also authorizes the
City to participate as a party to the appeal in conjunction with the ACSC, and requires
the Company to reimburse the City for its rate case expenses associated with the City’s
review of the RRM filing, and with the appeal of the City’s denial of the rate increase.
Rate Impact of Appeal by Atmos Effective June 1:
The RRM tariff constrains the annual increase in the residential customer charge
to no more than $0.50. The current $17.70 customer charge will be increased to $18.22
per month with the addition of an energy conservation program surcharge of $0.02. The
current $17.70 customer charge for unincorporated area customers will become $20.32
per month because all of the increase associated with a GRIP filing, which is applicable
to all customers not covered by a RRM tariff, is placed on the customer charge.
However, the commodity charge for unincorporated residential service will be less than
one-half of the commodity charge for residents of incorporated areas—$0.04172 per Ccf
vs. $0.08998 per Ccf.
3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644
C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@9C05BEAD\@BCL@9C05BEAD.docx 4:49 PM 04/29/14
A comparison of rates and rate impact of what Atmos initially proposed in its
RRM filing is reflected in the following chart:
Customer
Class
Current
Bill
New
Bill Difference
New
Customer
Charge
New
Commodity
Charge
Base
Rate
Increase
Residential 48.09 50.11 2.02 $ 18.22 $0.08998 Ccf 9.41%
Commercial 254.85 260.91 6.06 $ 38.85 $0.07678 Ccf 9.59%
Industrial 4,680.30 4,837.10 156.80 $675.00 declining block 9.70%
Transportatio
n
2,836.84 2,993.64 156.80 $675.00 declining block 9.70%
However, Atmoshas indicated that it will not appeal all issues raised by Cities
and thus the impact should be slightly less than what is reflected in the above chart. A
precise impact statement cannot be presented until after the Company’s appeal is filed.
Reasons Justifying Approval of the Resolution:
Consultants working on behalf of ACSC Cities have investigated the Company’s
requested rate increase. While the evidence does not support the $45.7 million increase
requested by the Company, ACSC’s consultants agree that the Company can justify an
increase in revenues of a much lesser amount—namely, an increase of only $19 million.
The Executive Committee authorized a settlement value considerably above the
consultants’ recommendation but it was insufficient to meet the Company’s expectation.
The Company and ACSC Cities were too far apart in their positions to reach a
compromise, and rather than granting a partial increase that the Company will not
accept, the option remaining is to deny the rate increase request in its entirety, and
participate in the Company’s appeal of this decision at the Railroad Commission.
RECOMMENDATION:
City staff recommends approval of the resolution denying the Atmos Energy rate
increase request. Action is required before June 1, 2014. Staff expects to return witha
negotiated settlement to be approved by the City Council at a later meeting date.
RESOLUTIONNO. ______________
ARESOLUTIONOF THE CITY COUNCIL OF THE CITY OF UNIVERSITY PARK,
TEXAS, DENYING THE RATE INCREASE REQUESTED BY ATMOS ENERGY
CORP., MID-TEX DIVISION,UNDER THE COMPANY’S 2014ANNUAL RATE
REVIEW MECHANISM FILING IN ALL CITIES EXERCISING ORIGINAL
JURISDICTION; REQUIRING THE COMPANY TO REIMBURSE CITY’S
REASONABLE RATEMAKING EXPENSESPERTAINING TO REVIEWOF THE
RRM; AUTHORIZING THE CITY’S PARTICIPATION WITH ATMOS CITIES
STEERING COMMITTEE IN ANY APPEAL FILED AT THE RAILROAD
COMMISSION OF TEXAS BY THE COMPANY; REQUIRING THE COMPANY TO
REIMBURSE CITY’SREASONABLE RATEMAKING EXPENSES IN ANY SUCH
APPEAL TO THE RAILROAD COMMISSION; DETERMINING THAT THIS
RESOLUTIONWAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF
THE TEXAS OPEN MEETINGS ACT; ADOPTING A SEVERABILITY CLAUSE;
REQUIRING DELIVERY OF THIS RESOLUTIONTO THE COMPANY AND THE
STEERING COMMITTEE’SLEGAL COUNSEL; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, theCity of University Park, Texas (“City”) is a gas utility customer of
Atmos Energy Corp., Mid-TexDivision (“Atmos Mid-Tex” or “Company”), and a regulatory
authority with an interest in the rates and charges of Atmos Mid-Tex; and
WHEREAS, the City is a member of the Atmos Cities Steering Committee (“ACSC”), a
coalition of approximately 164similarly situated cities served by Atmos Mid-Tex that have
joined together to facilitate the review of and response to natural gas issues affecting rates
charged in the Atmos Mid-Tex service area; and
WHEREAS, pursuant to the terms of the agreement settling the Company’s 2007
Statement of Intent to increase rates, ACSC Cities and the Company worked collaboratively to
develop a Rate Review Mechanism (“RRM”) tariff that allows for an expedited rate review
process controlled in a three-year experiment by ACSC Cities as a substitute to the current Gas
Reliability Infrastructure Program (“GRIP”)process instituted by the Legislature; and
WHEREAS, the City took action in 2008 to approve a Settlement Agreement with
Atmos Mid-Tex resolving the Company’s 2007 rate case and authorizing the RRM tariff; and
WHEREAS, in 2013, ACSC and the Company negotiated a renewal of the RRM tariff
process for an additional five years; and
WHEREAS, the City passed an ordinance renewing the RRM tariff process for the City
for an additional five years; and
WHEREAS, the RRM renewal tariffcontemplates reimbursement of ACSC Cities’
reasonable expenses associated with RRM applications; and
WHEREAS, on or about February 28, 2014, the Company filed with the City its second
annual RRM filingunder the renewed RRM tariff, requesting to increase natural gas base rates
by $45.7 million; and
WHEREAS, ACSC coordinated its review of Atmos Mid-Tex’s RRM filing through its
Executive Committee, assisted by ACSC attorneys and consultants, to investigateissues
identified by ACSC in the Company’s RRM filing; and
WHEREAS, ACSC attorneys and consultants have concluded that the Company is
unable to justify a rate increase of the magnitude requested in the RRM filing; and
WHEREAS, ACSC’s consultants determined the Company is only entitled to a $19
million increase, approximately 42% of the Company’s request under the 2014 RRM filing; and
WHEREAS, the Company would only be entitled to approximately $31 million if it had
a GRIP case; and
WHEREAS, the Company’s levels of operating and maintenance expense have
dramatically risen without sufficient justification; and
WHEREAS, the Company has awarded its executives and upper management increasing
and unreasonablelevels of incentivesand bonuses,expenses which should be borne by
shareholders who received a 23% total return on investment in 2013; and
WHEREAS,the Company requested adrasticallyhigh level of medical expense that is
unreasonable and speculatively based upon estimates; and
WHEREAS, ACSC and the Company were unable to reach a compromise on the amount
of additional revenues that the Company should recover under the 2014 RRM filing; and
WHEREAS, the ACSC ExecutiveCommittee, as well as ACSC’scounseland
consultants, recommend that ACSC Cities deny the requested rate increase;and
WHEREAS, the Company’s current rates are determined to be just, reasonable, and in
the public interest.
NOW, THEREFORE, BE IT RESOLVED BYTHE CITY COUNCIL OF THE
CITY OF UNIVERSITY PARK, TEXAS:
SECTION1.That the findings set forth in this Resolutionare hereby in all things
approved.
SECTION 2. That the City Council findsthat Atmos Mid-Tex was unable to justify the
appropriateness or the need for the increased revenues requested in the 2014 RRM filing, and
that existing rates for natural gas service provided by Atmos Mid-Tex arejust and reasonable.
SECTION 3. That AtmosMid-Tex shall reimburse the reasonable ratemaking expenses
of the ACSC Cities in processing the Company’s RRMapplication.
SECTION4. That in the event the Company files an appeal of this denial of rate
increaseto the Railroad Commission of Texas, the City is hereby authorized to intervene in such
appeal, and shall participate in such appeal in conjunction with the ACSC membership. Further,
in such event Atmos Mid-Tex shall reimburse the reasonable expenses of the ACSC Cities in
participating in the appeal of this and other ACSC City rate actionsresulting from the 2014 RRM
filing.
SECTION5. That the meeting at which this Resolutionwas approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 551.
SECTION 6. That if any one or more sections or clauses of this Resolutionis adjudged
to be unconstitutional or invalid, such judgment shall not affect, impair,or invalidate the
remaining provisions of this Resolutionand the remaining provisions of the Resolutionshall be
interpreted as if the offending section or clause never existed.
SECTION7. That a copy of this Resolutionshall be sent to Atmos Mid-Tex, care of
ChrisFelan, Manager ofRates and Regulatory Affairs, at Atmos Energy Corporation, 5420 LBJ
Freeway, Suite 1862, Dallas, Texas 75240,and to Geoffrey Gay, General Counsel to ACSC, at
Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725.
SECTION 8. This resolution shall take effect immediately from and after its passage, as
the law and Charter in such cases provide, and it is accordingly so resolved.
Duly passed by the City Council of the City ofUniversity Park, Texas, on the ____ day
of _________________ 2014.
APPROVED:
_________________________________
W. RICHARD DAVIS, MAYOR
ATTEST:APPROVED AS TO FORM:
________________________________________________________________
City Secretary City Attorney
AGENDA MEMO
5/6/2014Agenda
TO: Honorable Mayor and City Council
FROM:Steve Mace, Community Information Officer
SUBJECT: Report from Youth Advisory Commission 2013-14 Activities
BACKGROUND:
Comprised of 20University Park residents in grades 9 through 12, the City’s Youth Advisory
Commission has completed its sixth year of service to the community. All Youth Advisory
Commission members are selected after submitting an online application and participating in a
panelinterview. The Commission was created by the City Council as an advisory group on
issues directlyrelated to teenagers. YAC also helps the City with various special events and
ongoing communityoutreach efforts.
Among the Commission’s activitiesfrom May 2013to May 2014:
Helped spread the word on the City’s Fight the Bite campaign to combat West Nileby
distributing door hangers to households across the community.
Helped produce a Public Service Announcement to publicize the City’s drive-up location
for E-waste disposal.
Staffed 2 communitydocument shredding/e-waste disposal events
Assisted City staff at various community events including: the annual Fishing Derby, the
July4 Fun Run, and the Eggstravaganza in Goar Park
3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644
C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@5805648F\@BCL@5805648F.docx 1:45 PM 05/01/14
AGENDA MEMO
5/6/2014Agenda
TO:Honorable Mayor and City Council
FROM:Thomas W. Tvardzik, Director of Finance
SUBJECT:Receive FY2013 Comprehensive Annual Financial Report (CAFR)
BACKGROUND:
State law (Texas Local Government Code, Chapter 103) requires municipalities to have their
financial records audited annually by a certified public accountant. The firm of Weaver LLC
has completed its audit of the City's financial statements for the fiscal year ended September
30, 2013. The City received an unqualified audit opinion regarding the fair presentation of its
financial statements.
The CAFR reports City operations as either governmental or “business-type”activity.
Governmental activitiesdecreasedthe City’s net position by $147,524 in FY2013, while
business-type activitiesincreasedit by $310,176. This resulted in a combined increase of
$162,593. Total netposition as of September 30, 2013, was $164,605,448.
There was no "management letter" (SAS 115) required for FY2013. A SAS 155would
normally convey the auditor's findings to the governing body regarding any internal control
deficiencies or material weaknesses. There wasalso no SAS 114 letter, which would
communicateany significant findings regarding accounting issues.
Staff met with the Finance Advisory Committee on April 17and conveyed the CAFR to the
full committeefor their review. No significant concerns were raised. Printed, bound copies
of the full FY2013CAFR have been distributed andelectronically posted to the City's
website.
Staff has submitted the FY2013CAFR to the Government Finance Officers Associationfor
the Achievement of Excellence in Financial Reporting award. University Park has received
this award every year since FY1998. The CAFR is the result of many hours of staff effort.
A representative from Weaver LLC will attend the City Council pre-meeting to discuss any
questions you may have regarding the FY2013 CAFR.
RECOMMENDATION:
Receive the FY2013 CAFR
ATTACHMENTS:
None.