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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.