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Home My WebLink About2015.05.19 City Council AgendaCity Council City of University Park Meeting Agenda City Hall 3800 University Blvd. University Park, TX 75205 Council Chamber5:00 PMTuesday, May 19, 2015 EXECUTIVE SESSION 3:00 - 4:00 P.M. Pursuant to TGC§ 551.071, the City Council will meet in closed session to receive confidential legal advice from the City Attorney with regard to: (1) pending litigation (James H. Watson vs. the City of Allen, et al); (2) a consulting contract to perform a study at 3805 McFarlin; and (3) park usage. No action will be taken. Executive Conference Room, 1st Floor, City Hall. PRE-MEETING WORK SESSION(S) 4:00 - 4:45 P.M. The City Council will meet in open work session to receive an overview of the 2015 Community Survey Findings from Michael Egan of the The Dallas Marketing Group.. 4:45 - 5:00 P.M. The 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: City Attorney Rob Dillard B.PLEDGE OF ALLEGIANCE: City Attorney Rob Dillard / Boy Scouts C.INTRODUCTION OF COUNCIL: Mayor Olin Lane, Jr. D.INTRODUCTION OF STAFF: City Manager Robbie Corder II.AWARDS AND RECOGNITION III.CONSENT AGENDA Page 1 City of University Park Printed on 5/15/2015 May 19, 2015City Council Meeting Agenda 15-351 Consider approval of the minutes of the May 5, 2015 City Council meeting with or without corrections. Staff Report City Council Meeting Minutes - May 5, 2015.pdf Attachments: IV.MAIN AGENDA 15-349 Consider an ordinance approving a negotiated settlement agreement with Atmos Energy Corporation Staff Report Ordinance Settlement Agreement Attachment A Exhibit B Attachment D Attachments: 15-352 Overview of 2015 Community Survey findings 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 As authorized by Section 551.071(2) of the Texas Government Code, this meeting may be convened into Closed Executive Session for the purpose of seeking confidential legal advice from the City Attorney on any Agenda items listed herein. CERTIFICATE: I, Christine Green, City Secretary, do hereby certify that a copy of this Agenda was posted on the City Hall bulletin board, a place convenient and readily accessible to the general public at all times, and on the City's website, www.uptexas.org, in compliance with Chapter 551, Texas Government Code. DATE OF POSTING:____________________________ TIME OF POSTING:_____________________________ ________________________________ Christine Green, City Secretary Page 2 City of University Park Printed on 5/15/2015 3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644 C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@F4058CDC\@BCL@F4058CDC.docx 1:31 PM 05/14/15 AGENDA MEMO 5/21/2015Agenda TO:Honorable Mayor and City Council FROM:Christine Green, City Secretary SUBJECT:Minutes of the May 5, 2015City Council Meeting Minutes of the May 5, 2015City Council Meeting are included for the Council’s review. City Hall 3800 University Blvd. University Park, TX 75205 City of University Park Meeting Minutes City Council 5:00 PM Council ChamberTuesday, May 5, 2015 PRE-MEETING WORK SESSION(S) 4:00 - 5:00 P.M. The City Council met in open work session to receive agenda item briefings from staff. No action was taken. Council Conference Room, 2nd floor, City Hall. CALL TO ORDERI. Rollcall Councilmember Bob Begert, Councilmember Tommy Stewart, Councilmember Taylor Armstrong and Mayor Olin Lane Present:4 - Councilmember Dawn MooreExcused:1 - INVOCATION: Director of Human Resources Luanne HanfordA. PLEDGE OF ALLEGIANCE: Director of Human Resources Luanne Hanford / Boy Scouts B. Boy Scouts Jack Benak and Dylan Overcash of Troop 35 were present as part of earning their First Class rank. Josh Klein of Troop 435 was present as part of earning his Citizenship in the Community merit badge. They introduced themselves and assisted Director of Human Resources Luanne Hanford in leading the Pledge of Allegiance. Elijah Pedack of Troop 70 also attended the meeting as part of earning his Communications merit badge. INTRODUCTION OF COUNCIL: Mayor Olin Lane, Jr.C. INTRODUCTION OF STAFF: City Manager Robbie CorderD. Staff in attendance included Community Information Officer Steve Mace, Director of Information Services Dale Harwell, Chief of Police Greg Spradlin, Director of Public Works Bud Smallwood, City Secretary Christine Green, Deputy Director of Public Works Jacob Speer, Fire Chief Randy Howell, Director of Parks Gerry Bradley, Library Director Sharon Martin, Director of Finance Tom Tvardzik, Purchasing Manager Elizabeth Anderson, Director of Human Resources Luanne Hanford, and Director of Community Development Pat Baugh. Page 1City of University Park May 5, 2015City Council Meeting Minutes AWARDS AND RECOGNITIONII. Community Information Officer Steve Mace introduced Youth Advisory Commission (YAC) Chairperson Kathleen Kilpatrick and Vice Chairperson Ashley Farley. They said they have enjoyed their service on the YAC. They narrated a PowerPoint presentation highlighting YAC's 2014-15 activities and service to the community. CONSENT AGENDAIII. 15-338 Consider approval of an ordinance designating NO PARKING along the east curb of Durham, north from Daniel to the alley. City Manager Corder said that this a NO PARKING ordinance. SMU requested NO PARKING along the east curb of Durham, north from Daniel to the alley. Parked vehicles along the street create a sight obstruction for drivers exiting the alley or the parking lot in front of the sororities. This ordinance was adopted. Enactment No: ORD No.15/009 15-340 Consider approval of an agreement to support the City's participation in the NCTCOG annual Public Works Program. The city manager said that this is an agreement to support the City's participation in the North Central Texas Council of Governments (NCTCOG) annual Public Works Program. Member cities participate in and fund annual work programs. University Park has been a partner in the Public Works Program since 1992. The City's cost to support the 2015 program is $3,790. The City will receive benefit on such issues as Public Works Construction Standards (Specifications), Sustainable Public Rights-of-Way, iSWM Stormwater program, Hydrologic / flooding technical support, and general Public Works support. This agreement was approved. 15-345 Consider approval of the minutes of the April 21, 2015 City Council meeting with or without corrections. The minutes were approved Approval of the Consent Agenda A motion was made by Councilmember Stewart, seconded by Councilmember Begert, to approve the Consent Agenda. The motion carried by the following vote: Page 2City of University Park May 5, 2015City Council Meeting Minutes Aye:Councilmember Begert, Councilmember Stewart, Councilmember Armstrong, and Mayor Lane 4 - Excused:Councilmember Moore1 - MAIN AGENDAIV. 15-343 Consider approval of an ordinance abandoning two alley rights-of way. Public Works Director Bud Smallwood spoke to the City Council. The owners of properties located along Lovers Lane, Hyer, and Grassmere, west from the Preston-Westchester alleys are proposing to redevelop the site. The rezoning of PD-33 for this development was approved by the City Council on April 7. As part of the revised site plan, the owner requested that the City abandon the following alley rights-of-way through their development: ·Lovers-Hyer alley, west from the Preston-Westchester alley to the west property line of the development (alley 1) ·Hyer-Grassmere alley, west from the Preston-Westchester alley to the west property line of the development (alley 2) The site plan details public access/utility easements to replace the alley rights-of-way. An appraiser determined a fair market value appraisal of the alley rights-of-way in the amount of $470,809.05 ($117,593.25 for alley 1 and $353,215.80 for alley 2). This ordinance would abandon two alleys and accept two easements. Councilmember Stewart asked if the developer had responded to this appraisal. Bud Smallwood said that he had not yet heard from the developer regarding the appraisal. He said that if the developer chooses not to purchase the alley rights-of-way, then the abandonment will not go into effect. A motion was made by Councilmember Armstrong, seconded by Councilmember Begert, that this Ordinance be adopted. The motion carried by the following vote: Aye:Councilmember Begert, Councilmember Armstrong, and Mayor Lane3 - Nay:Councilmember Stewart1 - Enactment No: ORD No.15/010 Page 3City of University Park May 5, 2015City Council Meeting Minutes 15-339 Consider award of bids received for replacement of six traffic signals. Director of Public Works Bud Smallwood said that this item is a bid award for the replacement of six traffic signals at the following intersections: ·Hillcrest at Milton ·Hillcrest at University ·Hillcrest at McFarlin ·Hillcrest at Asbury ·Hillcrest at Granada ·Hillcrest at Binkley Durable Specialties submitted the low bid in the amount of $650,000. A motion was made by Councilmember Bob Begert, seconded by Councilmember Tommy Stewart, to approve this bid award. The motion carried by the following vote: Aye:Councilmember Begert, Councilmember Stewart, Councilmember Armstrong, and Mayor Lane 4 - 15-336 Consider purchase of Voice over Internet Protocol (VOIP) Telephone System Director of Information Services Dale Harwell said that this is a bid award to Co-Nexus for a Voice over Internet Protocal (VoIP) telephone system. This will replace the City's existing Nortel Meridian Option 61C telephone system installed in 2000. The total amount to cover the first five years of the contract with Co-Nexus is $228,252. A motion was made by Councilmember Begert, seconded by Councilmember Armstrong, to approve this bid award. The motion carried by the following vote: Aye:Councilmember Begert, Councilmember Stewart, Councilmember Armstrong, and Mayor Lane 4 - 15-337 Consider approval of Microsoft Enterprise Agreement. Dale Harwell said that this Microsoft Enterprise Agreement will facilitate the upgrade of the City's Microsoft products to the latest version of the Office productivity suite (Office 2013), the desktop operating system, and MS Server/SQL Server for the OSSI and New World Systems servers. This three year agreement totals $221,417.52 and will be through the State of Texas Department of Information Resources (DIR) contract that has been awarded to SHI Government Solutions (DIR-SDD-2503) as the reseller of Microsoft products. A motion was made by Councilmember Tommy Stewart, seconded by Councilmember Taylor Armstrong, to approve this purchase agreement. The motion carried by the following vote: Page 4City of University Park May 5, 2015City Council Meeting Minutes Aye:Councilmember Begert, Councilmember Stewart, Councilmember Armstrong, and Mayor Lane 4 - PUBLIC COMMENTSV. None ADJOURNMENTVI. Page 5City of University Park 3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644 C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@F405C0AC\@BCL@F405C0AC.docx 5:09 PM 05/12/15 AGENDA MEMO 5/19/2015Agenda TO:Honorable Mayor and City Council FROM:Dale Harwell, Director of Information Services SUBJECT:Consider and Act on an Ordinance Approving a Negotiated Settlement Agreement with Atmos Energy Corporation BACKGROUND: The City, along with other similarly situated cities served by Atmos Energy Corp., Mid-Tex Division (“AtmosMid-Tex” or “Company”), is a member of the Atmos Cities Steering Committee (“ACSC”). 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 February 2014, Atmos Mid-Tex filed its second annual filing under the Rate Review Mechanism (“RRM”) Tariff, seeking an increase of $45.7 million. Although ACSC attempted to reach a settlement with the Company as it had in past years, the wide differences between the Company and ACSC’s consultants’ recommendations made a compromise impossible. On the recommendation of the ACSC Executive Committee and ACSC’s legal counsel, the City in 2014 adopted a Resolution denying the requested rate increase. The Company appealed the City’s denial to the Railroad Commission of Texas (“Commission”), and revised its requested increase to $43.8 million. A hearing was held on the Company’s appeal on September 3, 2014. On April 28, 2015, the Commission’s Hearings Examiner issued his Proposal for Decision (“PFD”) in the Company’s appeal of the City’s denial of the 2014 RRM rate increase. This PFD was not favorable to ACSC, but did recommend a reduction of approximately $860,000 to the Company’s adjusted 2014 filing. While the parties were waiting for the PFD from the Hearings Examiner in the appeal of the 2014 RRM filing, on February 27, 2015, Atmos Mid-Tex filed with the City another rate increase request under the RRM Tariff, seeking additional revenues in the amount of $28.762 million (total system) or $24.0 million (affected cities). The City worked with ACSC to analyze the schedules and evidence offered by Atmos Mid-Tex to support its 2015 request to increase rates. The Ordinance and attached Settlement Agreement and tariffs are the result of negotiation between the Mid-Tex Executive Committee and the Company to resolve issues raised by ACSC during the review and evaluation of Atmos Mid-Tex’s filing. The recommended Settlement Agreement also 3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644 C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@F405C0AC\@BCL@F405C0AC.docx 5:09 PM 05/12/15 requires Atmos to abate its appeal of the City’s rejection of the 2014 RRM rate increase pending approval by all ACSC cities of the Settlement Agreement. The Agreement requires Atmos to give the City the benefit of the adjustments to the 2014 rate increase recommended by the PFD. The Ordinance and Settlement tariffs approve rates that will increase the Company’s revenues by $65.7 million for the Mid-Tex Rate Division, effective forbills rendered on or after June 1, 2015. The monthly residential customer charge will be $18.60. The consumption charge will change from $0.08819 per Ccf to $0.09931 per Ccf. The monthly bill impact for the typical residential customer consuming 60 Ccfwill be an increase of $1.14 (about a 1.59% increase in the base bill). The typical commercial customer will see an increase of $2.69 or 0.96%. The ACSC Executive Committee and its designated legal counsel and consultants recommend that all Cities adopt the Ordinance approving the negotiated Settlement Agreement resolving both the 2014 and the 2015 RRM filings, and implementing the rate change. RRM Background: The RRM tariff was originally approved by ACSC Cities as part of the settlement agreement to resolve the Atmos Mid-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 third RRM filing under the renewed tariff. 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 its 2015 case under the GRIP provisions, it would have received additional revenues from ratepayers of approximately $10 million. Purpose of the Ordinance: The purpose of the Ordinance is to approve the Settlement Agreement and the resulting rate change under the RRM tariff. As a result of the negotiations, the Executive Committee was able to reduce the Company’s requested $28.8 million rate increase for Mid-Tex cities to $21,962,784. When added to the settlement of the 2014 RRM filing and the adjustments recommended by the PFD, the Company will receive total additional annual revenues of $65.7 million. Because the 2014 rates have been in effect since June 1, 2014, the increase to currently-billed rates is $21 million. Approval of the Ordinance will result in rates that implement an increase in Atmos Mid-Tex’s revenues effective June 1, 2015. Why Approve the Settlement Agreement: While it is annoying and disconcerting to annually consider rateadjustments from Atmos Mid-Tex, the Texas legislature has granted gas utilities the right, through the GRIP process, to an annual increase based on increases in invested capital. GRIP is piecemeal ratemaking and ignores increases in revenues and declinesin O&M expenses that may be associated with plant additions. ACSC found it preferable to negotiate with Atmos to substitute an expedited comprehensive review process that 3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644 C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@F405C0AC\@BCL@F405C0AC.docx 5:09 PM 05/12/15 includes consideration of revenues and expenses as well as invested capital for the GRIP process. Compelling reasons for approving the Settlement include: 1.While the 2015 RRM system-wide filing exceeded $28 million, a comparable GRIP filing would have been in excess of $38 million. ACSC has negotiated a reduction to the 2015 filing of approximately $6 million. Therefore, the 2015 RRM result is approximately $16 million better for ratepayers within municipal limits than ratepayers within Environs. 2.ACSC counsel is convinced that the Proposal for Decision (“PFD”) by Railroad Commission Examiners in the 2014 RRM appeal will not improve if we file Exceptions and Replies to Exceptions. Counsel recommends action to avoid the PFD becoming a final order that would serve as precedent in future rate proceedings. 3.The token benefit to ratepayers authorized in the PFD to the 2014 appeal has been incorporated into the Settlement Agreement. 4.Atmos will file its formal withdrawal of its 2014 appeal only after all ACSC members approve the Settlement Agreement. 5.The alternative to approval of the Settlement Agreement would be another contested case hearing on appeal of the 2015 filing, implementation of interim rates on June 1, 2015 at the full value of the Company’s request (or $6 million higher than proposed by the Settlement) and continuation of the 2014 appeal with resulting rate case expenses borne by ratepayers. Explanation of “Be It Ordained” Sections: 1.This section approves all findings in the Ordinance. 2.This section finds the Settlement Agreement (attached to the Ordinance) to be a comprehensive settlement of gas utility rate issues arising from Atmos Mid-Tex’s 2014 and 2015 RRM filings, and that such settlement is in the public interest and consistent with the City’s statutory authority. 3.This section finds the existing Atmos Mid-Tex rates to be unreasonable, and approves the new tariffed rates providing for additional revenues over currently- billed rates of $21 million and adopts the attached new ratetariffs. 4.This section establishes the baseline for pensions and other post-employment benefits for future rate cases. 5.This section renews the Atmos Mid-Tex RRM Tariff for an additional period of time, commencing with the filing to be made on March1, 2016, and continuing until the RRM Tariff is suspended by ordinance of the City. 6.This section requires the Company to reimburse Cities for reasonable ratemaking costs associated with reviewing and processing the RRM filing. 7.This section repealsany resolution or ordinance that is inconsistent with this Ordinance. 3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644 C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@F405C0AC\@BCL@F405C0AC.docx 5:09 PM 05/12/15 8.This section finds that the meeting was conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. 9.This section is a savings clause, which provides that if any section(s) is later found to be unconstitutional or invalid, that finding shall not affect, impair or invalidate the remaining provisions of this Ordinance. This section further directs that the remaining provisions of the Ordinance are to be interpreted as if the offending section or clause never existed. 10.This section provides for an effective date upon passage which, according to the Cities’ ordinance that adopted the RRM process, is June 1, 2015. 11.This paragraph directs that acopy of the signed Ordinance be sent to a representative of the Company and legal counsel for the Steering Committee. RECOMMENDATION: Staff recommends approval of this ordinance. ATTACHMENTS: Ordinance approving negotiated settlement agreement with Atmos Energy Corporation Settlement Agreement 1 ORDINANCE NO. ______________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UNIVERSITY PARK, TEXAS, APPROVING A NEGOTIATED SETTLEMENTBETWEEN THE ATMOS CITIES STEERING COMMITTEE (“ACSC”)AND ATMOS ENERGY CORP., MID- TEXDIVISION REGARDING THE COMPANY’S 2014 AND 2015 RATE REVIEW MECHANISM FILINGS; APPROVING A SETTLEMENT AGREEMENT WITH ATTACHED RATE TARIFFS AND PROOF OFREVENUES; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITHTHE NEGOTIATED SETTLEMENT;FINDING THE RATES TO BE SET BY THE SETTLEMENTTARIFFS TO BE JUST AND REASONABLEAND IN THE PUBLIC INTEREST; REQUIRING THE COMPANY TO REIMBURSE ACSC’SREASONABLE RATEMAKING EXPENSES;DETERMINING THAT THIS ORDINANCE WAS PASSEDIN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; ADOPTING A SAVINGS CLAUSE; DECLARING AN EFFECTIVE DATE;AND REQUIRING DELIVERY OF THIS ORDINANCETO THE COMPANY AND THE ACSC’SLEGAL COUNSEL. WHEREAS, the City of University Park, Texas (“City”) is a gas utility customer of Atmos Energy Corp., Mid-TexDivision (“AtmosMid-Tex” or “Company”), and a regulatory authority with an interest in the rates and charges of Atmos; and WHEREAS, the City is a member of the AtmosCities Steering Committee (“ACSC”), a coalition of similarly-situated cities served by Atmos Mid-Tex(“ACSC Cities”)that have joined together to facilitate the review of and response to natural gas issues affecting rates charged in the Atmos Mid-Texservice area; and WHEREAS, ACSCand the Company worked collaboratively to develop a new Rate Review Mechanism (“RRM”) tariff that allows for an expedited rate review process byACSC Cities as a substitute to the Gas Reliability Infrastructure Program (“GRIP”)process instituted by 2 the Legislature, and that willestablish rates for the ACSCCities based on the system-wide cost of serving the Atmos Mid-TexDivision;and WHEREAS, the initial RRM Tariff was in effect for four(4) years; and WHEREAS, ACSC Cities and Atmos Mid-Tex entered into another settlement agreement and revised the RRM Tariff; and WHEREAS, ACSC Cities and Atmos Mid-Tex compromised and reached agreements on the amount of the rate increases to be in effect for the RRM Tariff filings for 2012and 2013; and WHEREAS, ACSC Cities and Atmos Mid-Tex were unable to reach an agreement on the 2014 RRM Tariff filing, resulting in the ACSC Cities’ rejection of the 2014 RRM filing; and WHEREAS, Atmos Mid-Tex appealed the ACSC Cities’ actions rejecting its 2014 RRM filing to the Railroad Commission of Texas (“Commission”), pursuant to the provisions of the RRM Tariff; and WHEREAS, Atmos Mid-Tex and ACSC litigated the appeal of the 2014 RRM filingat the Commission; and WHEREAS, on February 27, 2015, Atmos Mid-Tex filed its 2015 RRM Tariff filing, requesting to increase natural gas base rates system-wide by $28.762 million; and WHEREAS, ACSCcoordinated its review of Atmos Mid-TexRRMfiling through its Executive Committee, assisted by ACSC’sattorneys and consultants, to resolve issues identified in the Company’s RRM filing; and WHEREAS, Atmos Mid-Tex has agreed to withdraw itsappeal of ACSC’s rejection of its 2014 RRM Tariff rate increase; and WHEREAS, the ExecutiveCommittee, as well as ACSC’scounseland consultants, recommend that ACSCCities approve the attached Settlement Agreement(Attachment A to this 3 Ordinance)as well as the tariffs attached thereto, resolving both the 2014 and the 2015 RRM Tariff filings, which together will increase the Company’s revenuesby $65.7millionover the amount allowed under City-approved rates set in 2013; and WHEREAS, the attached tariffs implementing new rates are consistent with the negotiated Settlement Agreementand are just, reasonable, and in the public interest;and WHEREAS, the RRM Tariff should be renewed for a period of time commencing in 2016 and continuing until the RRM Tariff is suspended by ordinance of the City; and WHEREAS, the RRM Tariff contemplates reimbursement of ACSC’sreasonable expenses associated with RRM applications; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF UNIVERSITY PARK, TEXAS: Section 1. That the findings set forth in this Ordinance are hereby in all things approved. Section 2.That the City Council finds that the Settlement Agreement (Attachment A to this Ordinance) representsa comprehensive settlement of gas utility rate issues affecting the rates, operations, and services offered by Atmos Mid-Tex within the municipal limitsarising from Atmos Mid-Tex’s 2014 and 2015 RRM filings, is in the public interest,and isconsistent with the City’s authority under Section 103.001 of the Texas Utilities Code. Section 3. That the existing rates for natural gas service provided by Atmos Mid-Texare unreasonable. Thenew tariffs attached hereto and incorporated herein as Exhibit A, are just and reasonable, and are designed to allow Atmos Mid-Tex to recover annually an additional $65.7 million in revenue over the amount allowed under currently approved rates, or $21million over currently-billed rates, as shown in the Proof ofRevenuesattached hereto and incorporated herein as ExhibitB; such tariffsare hereby adopted. 4 Section 4. That the ratemaking treatment for pensions and other post-employment benefits in Atmos’ next RRM filing shall be as set forth on Attachment D, attached hereto and incorporated herein. Section 5. That in an effort to streamline the regulatory review process, the Atmos Mid- Tex RRM Tariff is renewed for a period commencing with the Company’s March 1, 2016 RRM filing for calendar year 2015, effective June 1, 2016, and continuing thereafter until such time as the City adopts an ordinance suspending operation of the RRM Tariff. Section 6. That Atmos Mid-Texshall reimburse the reasonable ratemaking expenses of the ACSCin processing the Company’s RRMapplication. Section 7. That to the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Ordinance, it is hereby repealed. Section 8. That the meeting at which this Ordinance was approved was in all things conductedin strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 9. That if any one or more sections or clauses of this Ordinance is adjudged to be unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provisions of this Ordinance and the remaining provisions of the Ordinance shall be interpreted as if the offending section or clause never existed. Section 10. That consistent with the City Ordinance that established the RRM process, this Ordinance shall become effective from and after its passage with rates authorized by attached tariffs to be effective for bills rendered on or afterJune 1, 2015. Section 11. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of Chris Felan, Vice President of Rates and Regulatory Affairs Mid-TexDivision, Atmos Energy 5 Corporation, 5420 LJB Freeway, Suite 1862, Dallas, Texas 75240,and to Geoffrey Gay,General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite1900, Austin, Texas 78701. PASSED AND APPROVED this __________ day of ___________________, 2015. _________________________________ Mayor ATTEST:APPROVED AS TO FORM: _______________________________________________________________ City Secretary City Attorney 1 SETTLEMENTAGREEMENTBETWEENATMOSENERGYCORP.,MID-TEX DIVISIONANDATMOSCITIESSTEERINGCOMMITTEE WHEREAS,thisagreement(“SettlementAgreement”)isenteredinto byAtmos EnergyCorp’sMid-TexDivisionandAtmosCitiesSteeringCommittee(“ACSC”)whose membersincludetheCitiesofAbilene,Addison,Allen,Alvarado,Angus,Anna,Argyle, Arlington,Aubrey,Bedford,Bellmead,Benbrook,BeverlyHills,Blossom,BlueRidge,Bowie, Boyd,Bridgeport,Brownwood,Buffalo,Burkburnett,Burleson,CaddoMills,Canton, Carrollton,CedarHill,Celeste,Celina,Centerville,Cisco,Clarksville,Cleburne,Clyde,College Station,Colleyville,ColoradoCity,Comanche,Commerce,Coolidge,Coppell,CopperasCove, Corinth,CorralCity,Crandall,Crowley,DalworthingtonGardens,Denison,DeSoto, Duncanville,Eastland,EdgecliffVillage,Emory,Ennis,Euless,Everman,Fairview,Farmers Branch,Farmersville,Fate,FlowerMound,ForestHill,FortWorth,Frisco,Frost,Gainesville, Garland,Garrett,GrandPrairie,Grapevine,Gunter,HaltomCity,HarkerHeights,Haskell, Haslet,Hewitt,HighlandPark,HighlandVillage,HoneyGrove,Hurst,Hutto,IowaPark,Irving, Justin,Kaufman,Keene,Keller,Kemp,Kennedale,Kerens,Kerrville,Killeen,Krum,Lake Worth,Lakeside,Lancaster,Lewisville,LincolnPark,LittleElm,Lorena,Madisonville, Malakoff,Mansfield,McKinney,Melissa,Mesquite,Midlothian,Murphy,Newark,Nocona, NorthRichlandHills,Northlake,Oakleaf,Ovilla,Palestine,Pantego,Paris,Parker,PecanHill, Petrolia,Plano,Ponder,Pottsboro,Prosper,Quitman,RedOak,Reno(Parker County), Richardson,Richland,RichlandHills,Roanoke,Robinson,Rockwall,Roscoe,Rowlett,Royse City,Sachse,Saginaw,SansomPark,Seagoville,Sherman,Snyder,Southlake,Springtown, Stamford,Stephenville,SulphurSprings,Sweetwater,Temple,Terrell,TheColony,Trophy Club,Tyler,UniversityPark,Venus,Vernon,Waco,Watauga,Waxahachie,Westlake,White Settlement,Whitesboro,WichitaFalls,Woodway,andWylie. WHEREAS,onFebruary28,2014,AtmosfiledwiththeACSCCitiesanapplication, hereinafterreferredtoasthe2014RRMfiling,toadjustratespursuant toRiderRRM-Rate ReviewMechanism,whichweresubsequentlyconsolidatedintoGUDNo.10359attheRailroad CommissionofTexas;and WHEREAS,onFebruary27,2015,AtmosfiledwiththeACSCCitiesanapplication, hereinafterreferredtoasthe2015RRMfiling,toadjustratespursuant toRiderRRM-Rate ReviewMechanism;and WHEREAS,theSettlementAgreementresolvesallissuesbetweenAtmosandACSC (“theSignatories”)regardingthe2014RRMfiling,whichiscurrentlypending beforethe Commission,andthe2015RRMfiling,whichiscurrentlypendingbeforetheACSC Cities,ina mannerthattheSignatoriesbelieveisconsistentwiththepublicinterest,andtheSignatories representdiverseinterests;and WHEREAS,theSignatoriesbelievethattheresolutionoftheissuesraised inthe2014 RRMfilingandthe2015RRMfilingcanbestbeaccomplishedbyeachACSC Cityapproving thisSettlementAgreementandtherates,termsandconditionsreflected inthetariffsattachedto thisSettlementAgreementasExhibitA; NOW,THEREFORE,inconsiderationofthemutualagreementsandcovenants establishedherein,theSignatories,throughtheirundersignedrepresentatives,agreetothe Attachment A 2 followingSettlementTermsasameansoffullyresolvingallissuesbetweenAtmosandthe ACSCCitiesinvolvingthe2014RRMfilingand2015RRMfiling: SettlementTerms 1.UpontheexecutionofthisSettlementAgreement,theACSCCitieswill approvean ordinanceorresolutiontoapprovetheSettlementAgreementandimplementtherates, termsandconditionsreflectedinthetariffsattachedtotheSettlementAgreementas ExhibitA.(AttachmentAtotheOrdinanceratifyingtheAgreement).Saidtariffs shouldallowAtmostorecoverannuallyanadditional$65.7millioninrevenueover theamountallowedundercurrentlyapprovedratesbyimplementationofratesshown intheproofofrevenuesattachedasExhibitB.(AttachmentBtotheOrdinance ratifyingthisAgreement).Theuniformimplementationofgasrates,termsand conditionsestablishedbytheSettlementAgreementshallbeeffectivefor bills renderedonorafterJune1,2015.ConsistentwiththeCity’sauthorityunderSection 103.001oftheTexasUtilitiesCode,theSettlementAgreementrepresentsa comprehensivesettlementofgasutilityrateissuesaffectingtherates,operationsand servicesofferedbyAtmoswithinthemunicipallimitsoftheACSCCitiesarisingfrom Atmos’2014RRMfilingand2015RRMfiling.Norefundsofchargesbilledto customersbyAtmosundertheRRMinpastperiodsshallbeowedorowing. 2.Inanefforttostreamlinetheregulatoryreviewprocess,AtmosandtheACSCCities haveagreedtorenewtheRateReviewMechanism(“RiderRRM”)foraperiod commencingwiththeCompany’sMarch1,2016filingunderthismechanismforthe calendaryear2015,effectiveJune1,2016,andcontinuingthereafteruntilsuchtimeas eithertheACSCCitiesissueanordinancestatingadesiretodiscontinuetheoperation ofthetarifforAtmosfilesaStatementofIntent.AtmosandtheACSCCitiesfurther agreethattheRRMtariffshallremainineffectuntilsuchtimeasnew,finalratesare establishedforAtmos.UponapprovalofthisSettlementAgreementbytheACSC Cities,AtmosshallfileanupdatedRRMTariffwitheachcityreflectingtheprovisions ofthisagreement. 3.AtmosandtheACSCCitiesagreethatratebaseasofDecember31,2014inthe amountof$1,955,948,256isjustandreasonableandshallberecoveredinrates. 4.AtmosandtheACSCCitiesagreethatapensionandotherpostemployment benefits balanceasofDecember31,2014intheamountof$18,284,949isjustandreasonable andshallbeusedasthebeginningbalanceforpurposesofdeterminingpensionand otherpostemploymentbenefitstoberecoveredinthenextRRMfiling(AttachmentD totheOrdinanceratifyingtheAgreement). 5.WithregardtothetreatmentofAtmos’Rule8.209regulatoryassetundertheRRM, AtmosandtheACSCCitiesagreetothefollowingwithrespecttoanypendingand futureRRMfilings: a.thecapitalinvestmentintheRule8.209regulatoryassetinthe2014RRMfiling and2015RRMfilingisreasonableandconsistentwiththerequirementsofRule 8.209; Attachment A 3 b.theclassificationofprojectsincludedintheRule8.209regulatoryassetinthe 2014RRMfilingand2015RRMfilingisreasonableandconsistentwiththe requirementsofRule8.209andshallserveasabasisforclassificationofprojects infutureRRMfilings; c.thetreatmentofblanketreplacementprojects,systemupgrades,relocations,and transmissionlinereplacementsintheRule8.209regulatoryassetin the2014RRM filingand2015RRMfiling is reasonableandconsistentwiththerequirementsof Rule8.209andshallbeincludedinfutureRRMfilings. d.theincurredexpensesincludedintheRule8.209regulatoryassetinthe2014 RRMandthe2015RRMarereasonableandconsistentwiththerequirementsof Rule8.209andshallbeincludedinfutureRRMfilings; e.interestontheRule8.209regulatoryassetaccountshallbecalculatedusingthe pre-taxcostofcapitalmostrecentlyapprovedbytheCommission.Theuseof the pre-taxcostofcapitalisconsistentwithRule8.209.AreturnonRule8.209 capitalinvestmentisonlyearnedoncetheinvestmentisincludedinratebase.No changeintheCompany'scalculationoftheinterestcomponentinitsRule8.209 regulatoryassetaccountsiswarrantedthroughtheperiodendedMay31,2015. BeginningJune1,2015,interestexpenseshallbecalculatedmonthlyusingsimple interest(i.e.11.49%dividedby12,orapproximately0.96%permonth)appliedto thetotalvalueoftheRule8.209assetinvestment(exclusiveofinterest)untilsuch timetheRule8.209regulatoryassetisapprovedforinclusionintheCompany’s ratebase. f.WhileAtmosandtheACSCCitiesagreetoapplythetreatmentsand methodologiessetforthinthisparagraph,subsections(a)–(e)inallfutureRRM filings,theregulatoryauthorityretainsitsrighttodisallowanycapitalinvestment thatisnotshowntobeprudentlyincurred,andanyexpensenotshowntobe reasonableandnecessary,infutureRRMfilings. g.AtmosandtheACSCCitiesacknowledgethattheiragreementregardingthe treatmentandmethodologiesapplicabletoRule8.209capitalinvestmentsunder theRRMtariffshallnotprejudicetherightofeitherpartytoarguefordifferent treatmentsormethodologiesinafuturestatementofintentproceeding. 6.RevenuesapprovedpursuanttoParagraph1oftheSettlementAgreementinclude reimbursementofratecaseexpensesowedtotheACSCCitiesinconnectionwiththe 2014RRMfiling. 7.TheSignatoriesagreethateachACSCcityshallapprovethisSettlementAgreement andadoptanordinanceorresolutiontoimplementfortheACSCCitiestherates, terms,andconditionsreflectedinthetariffsattachedtotheSettlementAgreementas ExhibitA.AtmosandACSCfurtheragreethatatsuchtimeasalloftheACSCCities havepassedanordinanceorresolutionconsistentwiththeSettlementandAtmoshas receivedsuchordinanceorresolution,Atmosshallwithdrawitsappealofthecurrently pendingRRMfilingbeforetheRailroadCommissionofTexasinconnectionwiththe 2014RRMfiling. Attachment A 4 8.AtmosandtheACSCCitiesfurtheragreethattheexpresstermsoftheRiderRRMare supplementaltothefiling,notice,regulatoryreview,orappellateproceduralprocessof theratemakingprovisionsofChapter104oftheTexasUtilitiesCode.Ifthestatute requiresamandatoryactiononbehalfofthemunicipalregulatoryauthorityorAtmos, thepartieswillfollowtheprovisionsofsuchstatute.Ifthestatuteallowsdiscretionon behalfofthemunicipalregulatoryauthority,theACSCCitiesagreethattheyshall exercisesuchdiscretioninsuchawayastoimplementtheprovisionsofthe RRM tariff.IfAtmosappealsanactionorinactionofanACSCCityregardinganRRM filingtotheRailroadCommission,theACSCCitiesagreethattheywill notopposethe implementationofinterimratesoradvocatetheimpositionofabondbyAtmos consistentwiththeRRMtariff.Atmosagreesthatitwillmakenofilingsonbehalfof itsMid-TexDivisionundertheprovisionsofSection104.301oftheTexasUtilities codewhiletheRiderRRMisinplace.Intheeventthataregulatoryauthorityfailsto actorentersanadversedecisionregardingtheproposedannualRRMadjustment,the RailroadCommissionofTexasshallhaveexclusiveappellatejurisdiction,pursuantto theprovisionsoftheTexasUtilitiesCode,toreviewtheactionorinactionof the regulatoryauthorityexercisingexclusiveoriginaljurisdictionovertheRRMrequest. Inaddition,theSignatoriesagreethatthisSettlementAgreementshallnot be construedasawaiveroftheACSCCities’righttoinitiateashowcauseproceedingor theCompany’srighttofileaStatementofIntentundertheprovisionsoftheTexas UtilitiesCode. 9.TheSignatoriesagreethatthetermsoftheSettlementAgreementareinterdependent andindivisible,andthatifanyACSCcityentersanorderthatisinconsistentwiththis SettlementAgreement,thenanySignatorymaywithdrawwithoutbeingdeemedto havewaivedanyproceduralrightortohavetakenanysubstantivepositionon anyfact orissuebyvirtueofthatSignatory’sentryintotheSettlementAgreement orits subsequentwithdrawal.IfanyACSCcityrejectsthisSettlementAgreement,thenthis SettlementAgreementshallbevoid abinitio andcounselfortheACSCCitiesshall thereafteronlytakesuchactionsasareinaccordancewiththeTexasDisciplinary RulesofProfessionalConduct. 10.TheSignatoriesagreethatallnegotiations,discussionsandconferencesrelatedtothe SettlementAgreementareprivileged,inadmissible,andnotrelevantto proveany issuesassociatedwithAtmos’2014RRMfilingand2015RRMfiling. 11.TheSignatoriesagreethatneitherthisSettlementAgreementnoranyoralorwritten statementsmadeduringthecourseofsettlementnegotiationsmaybeusedforany purposeotherthanasnecessarytosupporttheentrybytheACSCCitiesofan ordinanceorresolutionimplementingthisSettlementAgreement. 12.TheSignatoriesagreethatthisSettlementAgreementisbindingoneachSignatory onlyforthepurposeofsettlingtheissuessetforthhereinandfornootherpurposes, and,excepttotheextenttheSettlementAgreementgovernsaSignatory’s rightsand obligationsforfutureperiods,thisSettlementAgreementshallnotbebindingor precedentialuponaSignatoryoutsidethisproceeding. Attachment A 5 13.TheSignatoriesagreethatthisSettlementAgreementmaybeexecutedinmultiple counterpartsandmaybefiledwithfacsimilesignatures. Attachment A Attachment A Attachment A MID-TEXDIVISION RRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:C–COMMERCIALSALES APPLICABLETO:ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: Application ApplicabletoCommercialCustomersforallnaturalgasprovidedatonePointofDeliveryandmeasured throughonemeterandtoIndustrialCustomerswithanaverageannualusageoflessthan30,000Ccf. TypeofService WhereserviceofthetypedesiredbyCustomerisnotalreadyavailableatthePointofDelivery,additional chargesandspecialcontractarrangementsbetweenCompany andCustomermayberequiredpriorto servicebeingfurnished. MonthlyRate Customer'smonthlybillwillbecalculatedbyaddingthefollowingCustomerandCcfchargestothe amountsdueundertheriderslistedbelow: Charge Amount CustomerChargeperBill$40.00permonth RiderCEESurcharge $0.00permonth1 TotalCustomerCharge $40.00permonth CommodityCharge–AllCcf$0.08020perCcf GasCostRecovery:Plusanamountforgascostsandupstreamtransportationcostscalculated inaccordancewithPart(a)andPart(b),respectively,ofRiderGCR. WeatherNormalizationAdjustment:PlusorMinusanamountforweathernormalization calculatedinaccordancewithRiderWNA. FranchiseFeeAdjustment:Plusanamountforfranchisefees calculatedinaccordancewithRider FF.RiderFFisonlyapplicabletocustomersinsidethecorporatelimitsofanyincorporated municipality. TaxAdjustment:PlusanamountfortaxcalculatedinaccordancewithRiderTAX. Surcharges:Plusanamountforsurchargescalculatedinaccordancewiththeapplicablerider(s). Agreement AnAgreementforGasServicemayberequired. Notice Servicehereunderandtheratesforservicesprovidedaresubjecttotheordersofregulatorybodies havingjurisdictionandtotheCompany’sTariffforGasService. 1ReferenceRiderCEE-ConservationAndEnergyEfficiencyasapprovedinGUD10170.SurchargebillingeffectiveJuly1,2014. Exhibit AAttachment A MID-TEXDIVISION RRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:I–INDUSTRIALSALES APPLICABLETO:ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: Application ApplicabletoIndustrialCustomerswithamaximumdailyusage(MDU)oflessthan3,500MMBtuperday forallnaturalgasprovidedatonePointofDeliveryandmeasuredthroughonemeter.Servicefor IndustrialCustomerswithanMDUequaltoorgreaterthan3,500MMBtuperdaywillbeprovidedat Company'ssoleoptionandwillrequirespecialcontractarrangementsbetweenCompanyandCustomer. TypeofService WhereserviceofthetypedesiredbyCustomerisnotalreadyavailableatthePointofDelivery,additional chargesandspecialcontractarrangementsbetweenCompany andCustomermayberequiredpriorto servicebeingfurnished. MonthlyRate Customer'smonthlybillwillbecalculatedbyaddingthefollowingCustomerandMMBtuchargestothe amountsdueundertheriderslistedbelow: Charge Amount CustomerChargeperMeter$700.00permonth First0MMBtuto1,500MMBtu$0.2937perMMBtu Next3,500MMBtu $0.2151perMMBtu AllMMBtuover5,000MMBtu$0.0461perMMBtu GasCostRecovery:Plusanamountforgascostsandupstreamtransportationcostscalculated inaccordancewithPart(a)andPart(b),respectively,ofRiderGCR. FranchiseFeeAdjustment:Plusanamountforfranchisefees calculatedinaccordancewithRider FF.RiderFFisonlyapplicabletocustomersinsidethecorporatelimitsofanyincorporated municipality. TaxAdjustment:PlusanamountfortaxcalculatedinaccordancewithRiderTAX. Surcharges:Plusanamountforsurchargescalculatedinaccordancewiththeapplicablerider(s). CurtailmentOverpullFee UponnotificationbyCompanyofaneventofcurtailmentorinterruptionofCustomer’sdeliveries, Customerwill,foreachMMBtudeliveredinexcessofthestatedlevelofcurtailmentorinterruption,pay Company200%ofthemidpointpricefortheKatypointlistedin PlattsGasDaily publishedforthe applicableGasDayinthetableentitled“DailyPriceSurvey.” ReplacementIndex Intheeventthe“midpoint”or“common”pricefortheKatypointlistedin PlattsGasDaily inthetable entitled“DailyPriceSurvey”isnolongerpublished,Companywillcalculatetheapplicableimbalancefees utilizingadailypriceindexrecognizedasauthoritativebythenaturalgasindustryandmostclosely approximatingtheapplicableindex. Exhibit AAttachment A MID-TEXDIVISION RRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:I–INDUSTRIALSALES APPLICABLETO:ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: Agreement AnAgreementforGasServicemayberequired. Notice Servicehereunderandtheratesforservicesprovidedaresubjecttotheordersofregulatorybodies havingjurisdictionandtotheCompany’sTariffforGasService. SpecialConditions InordertoreceiveserviceunderRateI,CustomermusthavethetypeofmeterrequiredbyCompany. CustomermustpayCompanyallcostsassociatedwiththeacquisitionandinstallationofthemeter. Exhibit AAttachment A MID-TEXDIVISION RRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:R–RESIDENTIALSALES APPLICABLETO:ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: Application ApplicabletoResidentialCustomersforallnaturalgasprovidedatonePointofDeliveryandmeasured throughonemeter. TypeofService WhereserviceofthetypedesiredbyCustomerisnotalreadyavailableatthePointofDelivery,additional chargesandspecialcontractarrangementsbetweenCompany andCustomermayberequiredpriorto servicebeingfurnished. MonthlyRate Customer'smonthlybillwillbecalculatedbyaddingthefollowingCustomerandCcfchargestothe amountsdueundertheriderslistedbelow: Charge Amount CustomerChargeperBill$18.60permonth RiderCEESurcharge $0.02permonth1 TotalCustomerCharge $18.62permonth CommodityCharge–AllCcf $0.09931perCcf GasCostRecovery:Plusanamountforgascostsandupstreamtransportationcostscalculated inaccordancewithPart(a)andPart(b),respectively,ofRiderGCR. WeatherNormalizationAdjustment:PlusorMinusanamountforweathernormalization calculatedinaccordancewithRiderWNA. FranchiseFeeAdjustment:Plusanamountforfranchisefees calculatedinaccordancewithRider FF.RiderFFisonlyapplicabletocustomersinsidethecorporatelimitsofanyincorporated municipality. TaxAdjustment:PlusanamountfortaxcalculatedinaccordancewithRiderTAX. Surcharges:Plusanamountforsurchargescalculatedinaccordancewiththeapplicablerider(s). Agreement AnAgreementforGasServicemayberequired. Notice Servicehereunderandtheratesforservicesprovidedaresubjecttotheordersofregulatorybodies havingjurisdictionandtotheCompany’sTariffforGasService. 1ReferenceRiderCEE-ConservationAndEnergyEfficiencyas approvedinGUD10170.SurchargebillingeffectiveJuly1,2014. Exhibit AAttachment A MID-TEXDIVISION RRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:T–TRANSPORTATION APPLICABLETO:ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: Application Applicable,intheeventthatCompanyhasenteredintoaTransportationAgreement,toacustomer directlyconnectedtotheAtmosEnergyCorp.,Mid-TexDivisionDistributionSystem(Customer)forthe transportationofallnaturalgassuppliedbyCustomerorCustomer’sagentatonePointofDeliveryfor useinCustomer'sfacility. TypeofService WhereserviceofthetypedesiredbyCustomerisnotalreadyavailableatthePointofDelivery,additional chargesandspecialcontractarrangementsbetweenCompany andCustomermayberequiredpriorto servicebeingfurnished. MonthlyRate Customer'sbillwillbecalculatedbyaddingthefollowingCustomerandMMBtuchargestotheamounts andquantitiesdueundertheriderslistedbelow: Charge Amount CustomerChargeperMeter$700.00permonth First0MMBtuto1,500MMBtu$0.2937perMMBtu Next3,500MMBtu $0.2151perMMBtu AllMMBtuover5,000MMBtu$0.0461perMMBtu UpstreamTransportationCostRecovery:Plusanamountforupstreamtransportationcostsin accordancewithPart(b)ofRiderGCR. RetentionAdjustment:PlusaquantityofgasascalculatedinaccordancewithRiderRA. FranchiseFeeAdjustment:Plusanamountforfranchisefees calculatedinaccordancewithRider FF.RiderFFisonlyapplicabletocustomersinsidethecorporatelimitsofanyincorporated municipality. TaxAdjustment:PlusanamountfortaxcalculatedinaccordancewithRiderTAX. Surcharges:Plusanamountforsurchargescalculatedinaccordancewiththeapplicablerider(s). ImbalanceFees AllfeeschargedtoCustomerunderthisRateSchedulewillbe chargedbasedonthequantities determinedundertheapplicableTransportationAgreement andquantitieswillnotbeaggregatedforany CustomerwithmultipleTransportationAgreementsforthepurposesofsuchfees. MonthlyImbalanceFees CustomershallpayCompanythegreaterof(i)$0.10perMMBtu,or(ii)150%ofthedifferenceperMMBtu betweenthehighestandlowest“midpoint”pricefortheKaty pointlistedin PlattsGasDaily inthetable entitled“DailyPriceSurvey”duringsuchmonth,fortheMMBtuofCustomer’smonthlyCumulative Imbalance,asdefinedintheapplicableTransportationAgreement,attheendofeachmonththatexceeds 10%ofCustomer’sreceiptquantitiesforthemonth. Exhibit AAttachment A MID-TEXDIVISION RRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:T–TRANSPORTATION APPLICABLETO:ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: CurtailmentOverpullFee UponnotificationbyCompanyofaneventofcurtailmentorinterruptionofCustomer’sdeliveries, Customerwill,foreachMMBtudeliveredinexcessofthestatedlevelofcurtailmentorinterruption,pay Company200%ofthemidpointpricefortheKatypointlistedin PlattsGasDaily publishedforthe applicableGasDayinthetableentitled“DailyPriceSurvey.” ReplacementIndex Intheeventthe“midpoint”or“common”pricefortheKatypointlistedin PlattsGasDaily inthetable entitled“DailyPriceSurvey”isnolongerpublished,Companywillcalculatetheapplicableimbalancefees utilizingadailypriceindexrecognizedasauthoritativebythenaturalgasindustryandmostclosely approximatingtheapplicableindex. Agreement Atransportationagreementisrequired. Notice Servicehereunderandtheratesforservicesprovidedaresubjecttotheordersofregulatorybodies havingjurisdictionandtotheCompany’sTariffforGasService. SpecialConditions InordertoreceiveserviceunderRateT,customermusthavethetypeofmeterrequiredbyCompany. CustomermustpayCompanyallcostsassociatedwiththeacquisitionandinstallationofthemeter. Exhibit AAttachment A MID-TEXDIVISION ATMOSENERGYCORPORATION RIDER:WNA–WEATHERNORMALIZATIONADJUSTMENT APPLICABLETO:ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter11/01/2015PAGE: ProvisionsforAdjustment TheCommodityChargeperCcf(100cubicfeet)forgasservice setforthinanyRateSchedulesutilized bythecitiesoftheMid-TexDivisionserviceareafordeterminingnormalizedwinterperiodrevenuesshall beadjustedbyanamounthereinafterdescribed,whichamountisreferredtoasthe"Weather NormalizationAdjustment."TheWeatherNormalizationAdjustmentshallapplytoalltemperature sensitiveresidentialandcommercialbillsbasedonmeters readduringtherevenuemonthsofNovember throughApril.ThefiveregionalweatherstationsareAbilene,Austin,Dallas,Waco,andWichitaFalls. ComputationofWeatherNormalizationAdjustment TheWeatherNormalizationAdjustmentFactorshallbecomputedtothenearestone-hundredthcent perCcfbythefollowingformula: (HSFi x(NDD-ADD)) WNAFi =Ri (BLi +(HSFi xADD)) Where i=anyparticularRateScheduleorbillingclassificationwithinanysuch particularRateSchedulethatcontainsmorethanonebillingclassification WNAFi =WeatherNormalizationAdjustmentFactorfortheith ratescheduleor classificationexpressedincentsperCcf Ri =CommodityChargerateoftemperaturesensitivesalesfortheith scheduleor classification. HSFi =heatsensitivefactorfortheith scheduleorclassificationdividedbythe averagebillcountinthatclass NDD=billingcyclenormalheatingdegreedayscalculatedas thesimpleten-year averageofactualheatingdegreedays. ADD=billingcycleactualheatingdegreedays. Bli =baseloadsalesfortheith scheduleorclassificationdividedbytheaverage billcountinthatclass TheWeatherNormalizationAdjustmentforthejthcustomerinithratescheduleiscomputedas: WNAi =WNAFi xqij Whereqij istherelevantsalesquantityforthejthcustomerinithrateschedule. Exhibit AAttachment A MID-TEXDIVISION ATMOSENERGYCORPORATION RIDER:WNA–WEATHERNORMALIZATIONADJUSTMENT APPLICABLETO:ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter11/01/2015PAGE: BaseUse/HeatUseFactors ResidentialCommercial BaseuseHeatuseBaseuseHeatuse WeatherStationCcfCcf/HDDCcfCcf/HDD Abilene10.220.140498.800.6372 Austin11.590.1443213.620.7922 Dallas14.120.2000208.110.9085 Waco9.740.1387130.270.6351 Wichita Falls 11.790.1476122.350.5772 WeatherNormalizationAdjustment(WNA)Report OnorbeforeJune1ofeachyear,thecompanypostsonitswebsiteatatmosenergy.com/mtx-wna,in Excelformat,a WeatherNormalizationAdjustment(WNA)Report toshowhowthecompanycalculated itsWNAsfactorduringtheprecedingwinterseason.Additionally,onorbeforeJune1ofeachyear,the companyfilesonehardcopyandaExcelversionofthe WNAReport withtheRailroadCommissionof Texas'GasServicesDivision,addressedtotheDirectorofthatDivision. Exhibit AAttachment A Exhibit B Attachment A Fil e D a t e : F e b r u a r y 2 7 , 2 0 1 5 ATTACHMENT D Li n e No . De s c r i p t i o n Pe n s i o n Ac c o u n t P l a n (" P A P " ) Po s t - R e t i r e m e n t Me d i c a l P l a n (" F A S 1 0 6 " ) Pe n s i o n Ac c o u n t P l a n (" P A P " ) Su p p l e m e n t a l Ex e c u t i v e B e n e f i t Pl a n ( " S E R P " ) Po s t - R e t i r e m e n t Me d i c a l P l a n (" F A S 1 0 6 " ) Adjustment Total (a ) (b ) ( c ) ( d ) ( e ) ( f ) ( g ) 1 Fis c a l Y e a r 2 0 1 4 T o w e r s W a t s o n R e p o r t ( e x c l u d i n g R e m o v e d Co s t Ce n t e r s ) 6, 3 8 8 , 8 2 6 $ 4 , 5 4 2 , 0 2 3 $ 9 , 4 8 1 , 6 7 0 $ 1 6 5 , 7 5 8 $ 8 , 7 3 6 , 6 4 5 $ 2 A l l o c a t i o n t o M i d - T e x 46 . 2 6 % 4 6 . 2 6 % 7 1 . 7 0 % 1 0 0 . 0 0 % 7 1 . 7 0 % 3 FY 1 4 T o w e r s W a t s o n B e n e f i t C o s t s ( e x c l u d i n g R e m o v e d C o s t Ce n t e r s ) A l l o c a t e d t o M T X ( L n 1 x L n 2 ) 2, 9 5 5 , 3 0 4 $ 2 , 1 0 1 , 0 2 1 $ 6 , 7 9 8 , 5 3 1 $ 1 6 5 , 7 5 8 $ 6 , 2 6 4 , 3 3 4 $ 4 O & M a n d C a p i t a l A l l o c a t i o n F a c t o r 10 0 . 0 0 % 1 0 0 . 0 0 % 1 0 0 . 0 0 % 1 0 0 . 0 0 % 1 0 0 . 0 0 % 5 FY 1 4 T o w e r s W a t s o n B e n e f i t C o s t s T o A p p r o v e ( e x c l u d i n g Re m o v e d C o s t C e n t e r s ) ( L n 3 x L n 4 ) 2, 9 5 5 , 3 0 4 $ 2 , 1 0 1 , 0 2 1 $ 6 , 7 9 8 , 5 3 1 $ 1 6 5 , 7 5 8 $ 6 , 2 6 4 , 3 3 4 $ 1 8 , 2 8 4 , 9 4 9 $ 6 7 8 Su m m a r y o f C o s t s t o A p p r o v e : 9 10 To t a l P e n s i o n A c c o u n t P l a n ( " P A P " ) 2, 9 5 5 , 3 0 4 $ 6 , 7 9 8 , 5 3 1 $ 9,753,835$ 11 To t a l P o s t - R e t i r e m e n t M e d i c a l P l a n ( " F A S 1 0 6 " ) 2, 1 0 1 , 0 2 1 $ 6,264,334 $ 8 , 3 6 5 , 3 5 6 12 To t a l S u p p l e m e n t a l E x e c u t i v e R e t i r e m e n t P l a n ( " S E R P " ) 16 5 , 7 5 8 $ 1 6 5 , 7 5 8 13 To t a l ( L n 1 0 + L n 1 1 + L n 1 2 ) 2, 9 5 5 , 3 0 4 $ 2 , 1 0 1 , 0 2 1 $ 6 , 7 9 8 , 5 3 1 $ 1 6 5 , 7 5 8 $ 6 , 2 6 4 , 3 3 4 $ 1 8 , 2 8 4 , 9 4 9 $ 14 15 16 O & M E x p e n s e F a c t o r 95 . 8 2 % 9 5 . 8 2 % 4 3 . 0 3 % 2 1 . 0 0 % 4 3 . 0 3 % 17 18 E x p e n s e P o r t i o n ( L n 1 3 x L n 1 6 ) 2, 8 3 1 , 8 5 9 $ 2 , 0 1 3 , 2 6 0 $ 2 , 9 2 5 , 6 0 0 $ 3 4 , 8 0 9 $ 2 , 6 9 5 , 7 2 1 $ 1 0 , 5 0 1 , 2 5 0 $ 19 20 C a p i t a l F a c t o r 4. 1 8 % 4 . 1 8 % 5 6 . 9 7 % 7 9 . 0 0 % 5 6 . 9 7 % 21 22 C a p i t a l P o r t i o n ( L n 1 3 x L n 2 0 ) 12 3 , 4 4 5 $ 8 7 , 7 6 1 $ 3 , 8 7 2 , 9 3 0 $ 1 3 0 , 9 4 9 $ 3 , 5 6 8 , 6 1 4 $ 7 , 7 8 3 , 6 9 9 $ 23 24 T o t a l ( L n 1 8 + L n 2 2 ) 2, 9 5 5 , 3 0 4 $ 2 , 1 0 1 , 0 2 1 $ 6 , 7 9 8 , 5 3 1 $ 1 6 5 , 7 5 8 $ 6 , 2 6 4 , 3 3 4 $ 1 8 , 2 8 4 , 9 4 9 $ AT M O S E N E R G Y C O R P . , M I D - T E X D I V I S I O N PE N S I O N S A N D R E T I R E E M E D I C A L B E N E F I T S F O R C I T I E S A P PR O V A L TE S T Y E A R E N D I N G D E C E M B E R 3 1 , 2 0 1 4 Sh a r e d S e r v i c e s Mi d - T e x D i r e c t WP_F-2.3.1 Page 1 of 1 3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644 P:\Agenda Packets\994_City Council_5_19_2015\0003_1_Staff Report.docx 4:27 PM 05/15 AGENDA MEMO 5/21/2015 Agenda TO: Honorable Mayor and City Council FROM: Steve Mace, Community Information Officer SUBJECT: Overview of 2015 Community Survey findings Michael Egan of the Dallas Marketing Group will provide an overview of results from the recently conducted 2015 Community Survey. Households received the questionnaire in their March utility bill. The survey asked residents to rank a range of services and programs using a point scale with headings of “very satisfied” to “very dissatisfied.” A total of 1,213 households participated in the survey, 986 paper and 227 online. Findings from similar surveys in 2005, 2008 and 2011 have helped City staff improve services and procedures.