City of Canyon Commission Meetings

AGENDA NOTICE OF MEETING Notice is hereby given that the governing body of the City of Canyon will meet at 5:30 p.m. on the 20th day of October, 2014, in the Commission Chambers of City Hall at 301 16th Street in the City of Canyon to discuss the following agenda items: 1. Call to Order. 2. Invocation. 3. Pledge of Allegiance led by Gabriel Sexton. 4. Approval of the Minutes of the Meeting of September 8, 2014. 5. Public Forum – Comments from Interested Citizens. 6. Consider and Take Appropriate Action on City of Canyon’s Audit for FY 2012-2013. 7. Conduct Public Hearing and Consider and Take Appropriate Action on Specific Use Permit Request to Operate a Massage Therapy Establishment. 8. Consider and Take Appropriate Action on Plat for Southwind Addition Unit No. 3. 9. Consider and Take Appropriate Action on Bids Received for Street Reconstruction – Hunsley Hills Boulevard from Fairway to Village Drive. 10. Consider and Take Appropriate Action on Bids Received for Demolition of CISD Building. 11. Consider and Take Appropriate Action on Aquatic Feasibility Study Interviews. 12. Consider and Take Appropriate Action on Ordinance No. 1014, Adopting an Updated Water Conservation Plan. 13. Hold Public Hearing and Consider and Take Appropriate Action on Ordinance No. 1008, Amending Chapter 156, Zoning Code, of the City of Canyon Code of Ordinances, by Adding Section 5.13 Alcoholic Beverage Sales; Providing for Severability; Providing for Repealer; Providing for an Effective Date. 14. Consider and Take Appropriate Action on Ordinance No. 1016, Amending Title XI, Business Regulations, of the City of Canyon Code of Ordinances, by Adding Chapter 117, Alcoholic Beverages; Providing for Severability; Providing for Repealer, Providing for Penalty; Providing for an Effective Date. 15. Consider and Take Appropriate Action on Ordinance No. 1015 Approving a Settlement Agreement Between the Alliance of Xcel Municipalities and Southwestern Public Service Company. 16. Adjournment. Randy Criswell, City Manager I certify that the above Notice of Meeting was posted on the bulletin board of the Civic Complex of the City of Canyon, Texas on the 17th day of October, 2014. Gretchen Mercer, City Clerk City of Canyon City Commission Meeting September 8, 2014 The City Commission of the City of Canyon met in regular session at 5:30 p.m. in the City Commission Chambers of the Civic Complex. Mayor Alexander presided over the meeting with the following Commissioners in attendance: Mayor Pro-Tem Jed Welch, and Gary Hinders, Commissioners Justin Richardson and David Logan were unable to attend. Also present were the following City Staff: City Manager Randy Criswell, Assistant City Manager Chris Sharp, City Secretary Gretchen Mercer, Parks and Recreation Director Brian Noel, Librarian Sandra Munger, Assistant City Manager for Special Projects Jon Behrens, Director of Public Works Dan Reese, Police Chief Dale Davis, Code Enforcement Director Danny Cornelius, Business and Community Development Director Evelyn Ecker, and City Attorney Chuck Hester. Item 1. Call to Order. Mayor Alexander called the meeting to order at 5:38 p.m. Item 2. Invocation. Commissioner Hinders gave the invocation. Item 3. Pledge of Allegiance. Canyon Area Librarian Sandra Munger led the Pledge of Allegiance. Item 4. Approval of Minutes of the Meeting of August 25, 2014. Mayor Pro-Tem Welch moved, duly seconded by Commissioner Hinders, to approve the minutes of August 25, 2014. Motion carried unanimously. Item 5. Public Forum – Comments from Interested Citizens. Deryl Stephens of 2603 12th Ave addressed the Commission concerning the need for an ordinance regulating trees growing onto other people property. His Concern stems from his roof receiving $250 in damage from his neighbor’s trees. Mr. Stephens said he has contacted his Insurance and tried to work with the owner of the tree for compensation to no avail. Patsy Dawson of 2603 12th Ave addressed the Commission in favor of an Ordinance addressing overgrown trees encroaching neighbor’s property the same as overgrown weeds, grass or junk is currently addressed. Item 6. Consider and Take Appropriate Action on Resolution No. 13-2014, Approving Fireworks Display on WTAMU Campus for Homecoming Festivities on October 3, 2014. City Manager Randy Criswell presented Resolution No. 13-2014 for consideration. Mr. Criswell stated the city received a request from WTAMU Police Chief Sean Burns with a desire to have a fireworks display during the WTAMU homecoming festivities on Friday, October 3, 2014 within City Commission Meeting September 8, 2014 Page 2 of 4 the city limits. Mr. Criswell said Canyon Fire Chief Mike Webb has been in contact with Chief Burns and worked out all the details with no concerns. After discussion, Commissioner Hinders moved, duly seconded by Mayor Pro-Tem Welch to adopt Resolution No. 13-2014 as presented. Motion carried unanimously. RESOLUTION NO. 13-2014 A Resolution of the City Commission of the City of Canyon, Texas, Approving a Fireworks Show Within the City Limits of Canyon for the West Texas A&M University Homecoming Festivities October 3, 2014. Item 7. Hold Public Hearing and Consider and Take Appropriate Action on Ordinance No. 1008, Amending Chapter 156, Zoning Code, of the City of Canyon Code of Ordinances, by Adding Section 5.13 Alcoholic Beverage Sales; Providing for Severability; Providing for Repealer; Providing for an Effective Date. Director of Code Enforcement Danny Cornelius presented Ordinance No. 1008. Mr. Cornelius stated the Canyon Planning and Zoning Commission had been working this item preparing for the possibility of the passage of a local option election November 4, 2014. Mr. Cornelius stated the city is restricted by what it can and cannot regulate with the sale of alcohol and about the only 2 options are extended hours and setting some boundaries. Mr. Cornelius said after much consideration by the Canyon Planning and Zoning Commission, they drafted Ordinance No. 1008 with the extended hours rule. No one signed in to speak for the public hearing. After discussion, the commission directed staff to take Ordinance No. 1008 back to the Planning and Zoning Commission to remove the extended hours rule and consider the 300’ rule. Ordinance No. 1008 was tabled. ORDINANCE NO. 1008 Alcoholic Beverage Sales AN ORDINANCE OF THE CITY OF CANYON, TEXAS, AMENDING CHAPTER 156, ZONING CODE, OF THE CITY OF CANYON CODE OF ORDINANCES, BY ADDING SECTION 5.13 ALCOHOLIC BEVERAGE SALES; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEALER; PROVIDING FOR AN EFFECTIVE DATE. Item 8. Budget Work Session. No Discussion held. Item 9. Consider and Take Appropriate Action on Ordinance No. 1010, Approving a Budget for the City of Canyon for Fiscal Year October 1, 2014 through September 30, 2015. Assistant City Manager Chris Sharp presented Ordinance No. 1010 for consideration. City Commission Meeting September 8, 2014 Page 3 of 4 After discussion, Mayor Pro-Tem Welch moved, duly seconded by Commissioner Hinders to approve Ordinance No. 1010 as presented. Motion carried unanimously. ORDINANCE NO. 1010 AN ORDINANCE ADOPTING AND APPROVING A BUDGET FOR THE CITY OF CANYON, TEXAS, FOR THE FISCAL YEAR OCTOBER 1, 2014 THROUGH SEPTEMBER 30, 2015 Item 10. Consider and Take Appropriate Action on Ordinance No. 1011, Setting the Tax Rate and Tax Levy for the Year 2014. Assistant City Manager Chris Sharp presented Ordinance No. 1011 for consideration. Mr. Sharp stated adoption of Ordinance No. 1011 would adopt an ad valorem tax rate of $0.39083/hundred dollars valuation, an increase of 3.9% over the current tax rate, which is an increase of 5% over the effective tax rate. After discussion, Commissioner Hinders moved, duly seconded by Mayor Pro-Tem Welch, that Ordinance No. 1011 be adopted, and that the property tax rate be increased by the adoption of a tax rate of $0.39083, which is effectively a 5% increase in the tax rate. Motion carried unanimously. ORDINANCE NO. 1011 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS, SETTING THE AD VALOREM TAX RATE OF THE CITY OF CANYON, FOR THE YEAR 2014 AT A RATE OF $0.39083 PER ONE HUNDRED DOLLARS ($100.00) VALUATION ON ALL TAXABLE PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY OF CANYON SPECIFYING SEPARATE COMPONENTS OF SUCH RATE FOR OPERATIONS AND MAINTENANCE AND FOR DEBT SERVICE; LEVYING AN AD VALOREM TAX FOR THE YEAR 2014; ESTABLISHING AN EFFECTIVE DATE; PROVIDING FOR COLLECTION AND ORDAINING OTHER RELATED MATTERS; REPEALING CONFLICTING ORDINANCES. Item 11. Consider and Take Appropriate Action on Ordinance No. 1012, Repealing Ordinance No. 970, Amending Chapter 51 of the Water and Sewer Code of the City of Canyon, Texas, Section 51-21, by Increasing Rates for Water Service. Assistant City Manager Chris Sharp presented Ordinance No. 1012 for consideration. Mr. Sharp stated the City of Amarillo is increasing the water rates charged to the City of Canyon by 5% and that Canyon currently 1/3 of water used comes from Amarillo. Mr. Sharp said to offset this increase a 2% increase across the board was recommended. After discussion, Mayor Pro-Tem Welch moved, duly seconded by Mayor Alexander to adopt Ordinance No. 1012 as presented. Motion carried unanimously. ORDINANCE NO.1012 AN ORDINANCE REPEALING ORDINANCE NO. 970 OF THE CITY OF CANYON, TEXAS; AMENDING CHAPTER 51 OF THE WATER AND SEWER CODE OF THE CITY OF CANYON, TEXAS, SECTION 51-21, BY INCREASING RATES FOR WATER SERVICE; PROVIDING A SEVERABILITY CLAUSE; AND ESTABLISHING AN EFFECTIVE DATE. City Commission Meeting September 8, 2014 Page 4 of 4 Item 12. Consider and Take Appropriate Action on Ordinance No. 1013, Repealing Ordinance No. 945, Amending Chapter 50 of the Garbage and Trash Code of the City of Canyon, Texas, Subsection 50-18, by Increasing Rates for Trash Disposal Service. Assistant City Manager Chris Sharp presented Ordinance No. 1013 for consideration. Mr. Sharp stated an increase of $1 a month for both residential and commercial solid waste collection is needed. Mr. Sharp said sanitation rates had not been increased since 2011. After discussion, Commissioners Hinders moved, duly seconded by Mayor Pro-Tem Welch, to adopt Ordinance No. 1013 as presented. Motion carried unanimously. ORDINANCE NO. 1013 AN ORDINANCE REPEALING ORDINANCE NO. 945 OF THE CITY OF CANYON, TEXAS; PERTAINING TO GARBAGE AND TRASH RATES; AMENDING CHAPTER 50, “GARBAGE AND TRASH” OF THE CODE OF ORDINANCES OF THE CITY OF CANYON, TEXAS, BY AMENDING SUBSECTION 50-18 PROVIDING FOR GARBAGE AND TRASH DISPOSAL BY CITY ONLY AND ESTABLISHING RATES THEREFORE; PROVIDING A SEVERABILITY CLAUSE; AND ESTABLISHING AN EFFECTIVE DATE. Item 13. Adjournment There being no further business, Mayor Pro-Tem Welch moved this meeting be adjourned. __________________________ Quinn Alexander, Mayor ATTEST: ________________________________ Gretchen Mercer, City Secretary  AGENDA To: Mayor and City Commission From: Chris Sharp, Assistant City Manager Date: October 09, 2014 Re: Discuss and Approve 2012-2013 Audit as Presented by the Audit Committee and Brown Graham and Company. The Audit Committee consisting of Mayor Quinn Alexander, Commissioner Gary Hinders, City Manager Randy Criswell and Assistant City Manager Chris Sharp, has meet with Mr. Danny Wood from Brown, Graham and Company and has reviewed the draft audit. I will forward to you a finished audit along with any recommendations as soon as we receive it from Mr. Wood. Audit Committee Recommendation: The Audit Committee recommends approval of the 2012-2013 audit. City of Canyon  AGENDA To: Mayor and City Commission From: Danny Cornelius, Director of Code Enforcement Date: October 7, 2014 Re: Conduct Public Hearing and Consider and Take Appropriate Action on Specific Use Permit Request to Operate a Massage Therapy Establishment. Nicole Ash has submitted a Specific Use Permit request to operate a massage therapy establishment at 1408 4th Ave. The property is located in the RC-3 (Central Area) District. Table 1-1, Summary Use Chart of the City of Canyon Zoning Ordinance allows massage therapy establishments by Specific Use Permit. Letters were sent to 13 property owners within 200 feet. Responses were received from 4 owners. All were in support of the request. The Planning and Zoning Commission voted unanimously to recommend approval of the Specific Use Permit. City of Canyon  AGENDA To: Mayor and City Commission From: Danny Cornelius, Director of Code Enforcement Date: October 7, 2014 Re: Consider and Take Appropriate Action on Plat for Southwind Addition Unit No. 3. Larry Wilhite has submitted the attached plat for Southwind Addition Unit No. 3. We approved Southwind Addition Unit No. 2 in August. Although the property is not within our city limits, the city does have the authority to approve plats within our Extraterritorial Jurisdiction (ETJ). The ETJ for the City of Canyon is 1 mile. Southwind Unit Addition No. 3 is just under a mile south of town, west of Hwy 87, between Rice Road and Pondaseta Lane. The Planning and Zoning Commission voted unanimously to recommend approval of the plat. City of Canyon  AGENDA To: Randy Criswell, City Manager From: Dan Reese, Public Works Director Date: October 7, 2014 Re: Consider and Take Appropriate on Bids Received for Street Reconstruction - Hunsley Hills Boulevard from Fairway Drive to Village Drive For many years now, we have discussed reconstructing and lengthening the low water crossing on Hunsley Hills Blvd. between Village and Fairway. The existing crossing allowed water in the crossing to be spread onto the adjacent pavement causing problems over time. The condition of the crossing has deteriorated and the adjacent pavement has had its condition issues as well. This block of paving has always been a maintenance problem caused by poor initial construction, water always being on the pavement from the crossing and the proximity of groundwater from the creek being under the paving. As time progressed and we accumulated funding, the project sort of morphed into what we are presenting here. We have decided to reconstruct the entire roadway from Fairway to Village. This will also allow us to address some alignment and width problems. The street will actually be narrowed on the west end, matching the standard 37’ width west of Fairway. Then, east of the creek, the width will be allowed to transition back to the existing width at Village. The area of the street itself will be reduced by several thousand square feet of pavement that was basically unused. The excess area behind the new curb will be occupied by new sidewalks. Bids were received and opened on September 25, 2014. The base bid included a new and lengthened concrete water crossing with the remainder being hot mix asphalt paving. An alternate bid was taken on constructing the entire block with concrete. Three bids were received. The results are attached on the bid tabulation sheet. The low bid for the base bid was submitted by L.A. Fuller & Sons in the amount of $382,315.00. The low bid for the all- concrete alternate bid was submitted by MH Civil Constructors in the amount of $400,587.57. The final estimate from the Engineer for the base bid was $395,000. We have saved about $200,000 for this project. For FY’15 we budgeted $135,000. As we discussed during budget preparation, we knew that we would probably be short of the estimated cost by about $60,000. Funds from other sources, possibly reserves, will be needed to complete the project in either form (hot-mix or concrete). As is apparent from the tabulation, the alternate bid is about $18,000 more than the base bid. However, after further consideration, we feel as though the alternate bid is the way to go for a couple of reasons: 1) Going with the concrete alternate will all but eliminate future maintenance of this part of the street, with the exception of periodic joint sealing. This area was always tricky to sealcoat and it seemed as though we were always patching the hot-mix. A concrete street will eliminate this area from the patching and sealcoating list. The concrete surface will withstand moisture and freeze/thaw cycles much better and longer than a hot-mix surface. City of Canyon  AGENDA 2) We chose this to be a winter time project. It will be much easier to pour concrete in the winter than lay hot-mix. We will be able to pick and choose certain days to work and pour, versus really needing a good week of favorable weather at a time to lay hot mix. If we choose the hot-mix option, we also run the risk of leaving the road base exposed for a lengthy time, before we could pave over it. We feel as though the extra expense is justified based on the reduction in maintenance, ease of construction compared to hot-mix, and overall long-term durability of the concrete surface. The Engineer has submitted his recommendation letter, agreeing with what we have presented above. His letter is attached. The public works department, in concurrence with the City Engineer, recommends that the City Commission award the alternate bid for this project to MH Civil Constructors, in the amount of $400,587.57. City of Canyon BID TABULATION SHEET Project Description: 81581 - Street Reconstruction Hunsley Hills Boulevard from Fairway Dr. to Village Dr. Canyon, Texas September 25, 2014 - 2:00 P.M. BASE BID Item Base Bid Item MH Civil Constructors L.A. Fuller & Sons Holmes Construction J. Lee Milligan No. Items Description Est. Quantity Unit Unit Price Ext. Amount Unit Price Ext. Amount Unit Price Ext. Amount Unit Price Ext. Amount 1 Mobilization 1 LS $14,247.30 $14,247.30 $19,110.00 $19,110.00 $53,988.00 $53,988.00 $50,000.00 $50,000.00 2 Demolition 1 LS $92,102.07 $92,102.07 $30,000.00 $30,000.00 $20,006.00 $20,006.00 $71,850.00 $71,850.00 3 Excavation & Grading 5,650 SY $2.59 $14,633.50 $6.80 $38,420.00 $3.40 $19,210.00 $3.20 $18,080.00 4 6" Compacted Subgrade 3,870 SY $2.59 $10,023.30 $3.00 $11,610.00 $6.80 $26,316.00 $5.00 $19,350.00 5 4" Lift of Flexible Base 3,030 SY $5.18 $15,695.40 $6.20 $18,786.00 $10.60 $32,118.00 $10.30 $31,209.00 6 6" Lift of Flexible Base 1,700 SY $7.77 $13,209.00 $10.10 $17,170.00 $14.21 $24,157.00 $14.55 $24,735.00 7 1-1/2" Hot Mix Asphalt Paving 1,420 SY $13.46 $19,113.20 $12.10 $17,182.00 $15.85 $22,507.00 $16.10 $22,862.00 8 1" Hot Mix Asphalt Paving 1,420 SY $12.42 $17,636.40 $8.40 $11,928.00 $16.55 $23,501.00 $13.45 $19,099.00 9 5" Concrete Pavement 5,580 SF $5.18 $28,904.40 $7.30 $40,734.00 $7.35 $41,013.00 $8.10 $45,198.00 10 6" Concrete Pavement 1,220 SF $6.21 $7,576.20 $8.30 $10,126.00 $8.10 $9,882.00 $10.40 $12,688.00 11 8" Concrete Pavement 11,900 SF $8.28 $98,532.00 $8.75 $104,125.00 $8.55 $101,745.00 $9.10 $108,290.00 12 24" Curb & Gutter 1,260 LF $15.53 $19,567.80 $19.00 $23,940.00 $15.00 $18,900.00 $22.50 $28,350.00 13 Retaining Wall 1 LS $7,245.00 $7,245.00 $6,000.00 $6,000.00 $4,800.00 $4,800.00 $6,800.00 $6,800.00 14 Textured ADA Ramp 60 SF $25.88 $1,552.80 $25.00 $1,500.00 $20.00 $1,200.00 $37.50 $2,250.00 15 Rock Rip Rap 300 SF $18.63 $5,589.00 $20.00 $6,000.00 $12.50 $3,750.00 $15.60 $4,680.00 16 Saw Cut Pavement 260 LF $2.07 $538.20 $2.50 $650.00 $2.90 $754.00 $11.00 $2,860.00 17 Hot Mix Asphalt Pavement Repair 100 SY $77.63 $7,763.00 $32.75 $3,275.00 $42.41 $4,241.00 $52.00 $5,200.00 18 Valve Box Adjustment 2 EA $155.25 $310.50 $500.00 $1,000.00 $875.00 $1,750.00 $640.00 $1,280.00 19 Remove adjust and replace signs, meter boxes, manholes golf cart, and misc. 1 LS $1,552.50 $1,552.50 $5,100.00 $5,100.00 $2,000.00 $2,000.00 $4,600.00 $4,600.00 20 Erosion Controls 1 LS $5,175.00 $5,175.00 $3,500.00 $3,500.00 $9,865.00 $9,865.00 $9,600.00 $9,600.00 21 Traffic Controls 1 LS $15,525.00 $15,525.00 $12,159.00 $12,159.00 $6,900.00 $6,900.00 $11,500.00 $11,500.00 Base Bid Total $396,491.57 $382,315.00 $428,603.00 $500,481.00 Days to Complete 90 90 70 120 ALTERNATE NO. 1 Item Base Bid Item MH Civil Constructors L.A. Fuller & Sons Holmes Construction J. Lee Milligan No. Items Description Est. Quantity Unit Unit Price Ext. Amount Unit Price Ext. Amount Unit Price Ext. Amount Unit Price Ext. Amount 1 4" Lift of Flexible Base 3,300 SY $5.00 $16,500.00 $6.20 $20,460.00 $10.60 $34,980.00 $10.30 $33,990.00 2 8" Concrete Pavement 24,680 SF $6.15 $151,782.00 $8.50 $209,780.00 $8.55 $211,014.00 $9.10 $224,588.00 Alternate Bid No. 1 Bid Total $168,282.00 $230,240.00 $245,994.00 $258,578.00 Total Base Bid and Alt No.1 $400,587.57 $443,364.00 $470,569.00 $552,864.00 Page 1 of 1 BID TABULATION SHEET Project Description: 81581 - Street Reconstruction Hunsley Hills Boulevard from Fairway Dr. to Village Dr. Canyon, Texas September 25, 2014 - 2:00 P.M. BASE BID Item Base Bid Item MH Civil Constructors L.A. Fuller & Sons Holmes Construction J. Lee Milligan No. Items Description Est. Quantity Unit Unit Price Ext. Amount Unit Price Ext. Amount Unit Price Ext. Amount Unit Price Ext. Amount 1 Mobilization 1 LS $14,247.30 $14,247.30 $19,110.00 $19,110.00 $53,988.00 $53,988.00 $50,000.00 $50,000.00 2 Demolition 1 LS $92,102.07 $92,102.07 $30,000.00 $30,000.00 $20,006.00 $20,006.00 $71,850.00 $71,850.00 3 Excavation & Grading 5,650 SY $2.59 $14,633.50 $6.80 $38,420.00 $3.40 $19,210.00 $3.20 $18,080.00 4 6" Compacted Subgrade 3,870 SY $2.59 $10,023.30 $3.00 $11,610.00 $6.80 $26,316.00 $5.00 $19,350.00 5 4" Lift of Flexible Base 3,030 SY $5.18 $15,695.40 $6.20 $18,786.00 $10.60 $32,118.00 $10.30 $31,209.00 6 6" Lift of Flexible Base 1,700 SY $7.77 $13,209.00 $10.10 $17,170.00 $14.21 $24,157.00 $14.55 $24,735.00 7 1-1/2" Hot Mix Asphalt Paving 1,420 SY $13.46 $19,113.20 $12.10 $17,182.00 $15.85 $22,507.00 $16.10 $22,862.00 8 1" Hot Mix Asphalt Paving 1,420 SY $12.42 $17,636.40 $8.40 $11,928.00 $16.55 $23,501.00 $13.45 $19,099.00 9 5" Concrete Pavement 5,580 SF $5.18 $28,904.40 $7.30 $40,734.00 $7.35 $41,013.00 $8.10 $45,198.00 10 6" Concrete Pavement 1,220 SF $6.21 $7,576.20 $8.30 $10,126.00 $8.10 $9,882.00 $10.40 $12,688.00 11 8" Concrete Pavement 11,900 SF $8.28 $98,532.00 $8.75 $104,125.00 $8.55 $101,745.00 $9.10 $108,290.00 12 24" Curb & Gutter 1,260 LF $15.53 $19,567.80 $19.00 $23,940.00 $15.00 $18,900.00 $22.50 $28,350.00 13 Retaining Wall 1 LS $7,245.00 $7,245.00 $6,000.00 $6,000.00 $4,800.00 $4,800.00 $6,800.00 $6,800.00 14 Textured ADA Ramp 60 SF $25.88 $1,552.80 $25.00 $1,500.00 $20.00 $1,200.00 $37.50 $2,250.00 15 Rock Rip Rap 300 SF $18.63 $5,589.00 $20.00 $6,000.00 $12.50 $3,750.00 $15.60 $4,680.00 16 Saw Cut Pavement 260 LF $2.07 $538.20 $2.50 $650.00 $2.90 $754.00 $11.00 $2,860.00 17 Hot Mix Asphalt Pavement Repair 100 SY $77.63 $7,763.00 $32.75 $3,275.00 $42.41 $4,241.00 $52.00 $5,200.00 18 Valve Box Adjustment 2 EA $155.25 $310.50 $500.00 $1,000.00 $875.00 $1,750.00 $640.00 $1,280.00 19 Remove adjust and replace signs, meter boxes, manholes golf cart, and misc. 1 LS $1,552.50 $1,552.50 $5,100.00 $5,100.00 $2,000.00 $2,000.00 $4,600.00 $4,600.00 20 Erosion Controls 1 LS $5,175.00 $5,175.00 $3,500.00 $3,500.00 $9,865.00 $9,865.00 $9,600.00 $9,600.00 21 Traffic Controls 1 LS $15,525.00 $15,525.00 $12,159.00 $12,159.00 $6,900.00 $6,900.00 $11,500.00 $11,500.00 Base Bid Total $396,491.57 $382,315.00 $428,603.00 $500,481.00 Days to Complete 90 90 70 120 ALTERNATE NO. 1 Item Base Bid Item MH Civil Constructors L.A. Fuller & Sons Holmes Construction J. Lee Milligan No. Items Description Est. Quantity Unit Unit Price Ext. Amount Unit Price Ext. Amount Unit Price Ext. Amount Unit Price Ext. Amount 1 4" Lift of Flexible Base 3,300 SY $5.00 $16,500.00 $6.20 $20,460.00 $10.60 $34,980.00 $10.30 $33,990.00 2 8" Concrete Pavement 24,680 SF $6.15 $151,782.00 $8.50 $209,780.00 $8.55 $211,014.00 $9.10 $224,588.00 $168,282.00 $230,240.00 $245,994.00 $258,578.00 Total Base Bid and Alt No.1 (less bid items 5, 6, 7, 8, and 11) $400,587.57 $443,364.00 $470,569.00 $552,864.00 Page 1 of 1  AGENDA To: Mayor and City Commission From: Jon Behrens Date: October 9, 2014 Re: Awarding of Demolition Bid We are moving forward with the former CISD Administration building project. Abatement of the building began on October 13 and should take four weeks. It is our plan to start demolition of the building immediately following the abatement. The City took sealed bids for the demolition of the building and those bids were opened on September 23, 2014, at 4 pm. The only bid received for the demolition was from Grant Construction. Bidder Date Received Bid Grant Construction 9/17/14 $53,013.00 It is the recommendation of City staff that the bid for $53,013.00 from Grant Construction be accepted and that staff move forward with this project. City of Canyon  AGENDA To: Mayor and City Commission From: Jon Behrens Date: October 8, 2014 Re: Consider and Take Appropriate Action on Aquatic Feasibility Study Interviews The Aquatic Facility committee has met twice since the last City Commission meeting. September 25 – Committee met to review the RFQ, discuss the RFQ process and schedule, review the RFQ submittal scoring process, and discuss committee expansion. September 26 – Ten RFQ response submittals were received. September 29 – RFQ submittals were delivered to Committee members for them to evaluate. October 7 – Committee met, reviewed each submittal, and selected top three teams. After scoring each of the submittals, based on the scoring system defined in the RFQ, and reviewing each consulting team carefully the Aquatic Facility committee would like to recommend that the following teams be invited to Canyon to make a formal presentation to the committee: 1. Parkhill, Smith, & Cooper and Water Technology, Inc. 2. Kimley-Horn & Associates and Counsilman-Hunsaker 3. Aquatic Design Consultants, Inc. The committee feels that these three teams all poses the qualifications that will enable them to perform the study and provide the technical knowledge that will assist the committee in making informed decisions throughout this process. At the completion of the presentation process the committee will once again evaluate these three firms and rank them accordingly. Staff will then seek permission to enter into contract negations with the top team. It is the committee’s goal to move through the selection process as quickly as possible in an effort to kick off the study prior to the end of the year. Staff recommends these three submittals be accepted for final interviews and seeks permission to enter into contract negotiations with the top team. City of Canyon  AGENDA To: Randy Criswell, City Manager From: Dan Reese, Public Works Director Date: October 1, 2014 Re: Consider and Take Appropriate on Ordinance No. 1014, Adopting an Updated Water Conservation Plan. In 2007, the Texas Legislature amended the Texas Water Code to require public water systems that serve 3,300 connections or more to submit a water conservation plan to the Texas Water Development Board (TWDB). The original plan was adopted in 2009 by Ordinance No. 889 and was made part of city code under Title V, Chapter 53. The rules require an update to the plan every 5 years. The TCEQ rules for water conservation plans (30 TAC, Chapter 288) were amended in 2012. Ordinance 1014 will address these requirements and adopt the updated plan. Certain criteria as dictated by the Water Code and the TCEQ must be met to have a valid plan. These minimum requirements and basic concepts of the plan require us to address the following: 1) Inclusion of a water utility profile (basic data on the water system, usage, etc.) 2) Implementation of a records management system – definition of usage sectors (residential, commercial, industrial, etc.) 3) Establishment of 5 and 10 year targets and goals for conservation based on per capita water use (GPCD). These goals must be specific and quantifiable. 4) Water source master metering (5% accuracy). 5) Universal metering, testing and repair. 6) Determination and control of water loss. 7) A public education and information program. 8) A water rate structure that is cost based and does not encourage excessive water use. 9) A reservoir system operations plan, if applicable. 10) Means for plan implementation and enforcement to achieve the goals. 11) Coordination with the Regional Water Planning Group. Additional Plan Requirements (systems serving over 5000 population) 1) Leak detection, repair and water loss accounting. 2) Requirement for wholesale customers to maintain their own water conservation plans. The rules also require a combination of additional conservation strategies be employed if they are needed to achieve the goals of the plan. Examples are: 1) Conservation oriented water rates 2) Adopting ordinances and plumbing codes for water conserving plumbing fixtures City of Canyon  AGENDA 3) Water saving plumbing fixture retrofit / replacement program 4) Wastewater / graywater reuse / recycling 5) Water pressure reduction / control program 6) Landscape water management / control 7) Conservation Plan effectiveness monitoring All of the minimum and additional requirements of the rules for the plan are already being addressed by our current reporting, procedures and practices. Some of the additional strategies that are not required are also being employed. The rules for these plans are specific and we continue to strive to follow our plan the best we know how. The drought of the last few years has made it really tough to achieve abundant conservation. The figures included in this plan indicate that. The data used in this plan is through calendar year 2013. We believe that 2014 and beyond will show some progress being made toward conservation, especially with the easing of the drought. As shown in the plan, the previous 5 year average total water use was 178 gal/person/day (GPCD). For the previous plan cycle (2004-2008) the average was 169 GCPD. Our conservation goal in the previous plan was to achieve 165 GCPD in 5 years and 160 GCPD in 10 years. At present, these goals seem unrealistic to repeat. Therefore, based on the previous 10 years of data, we have set the goals for this plan at 170 GCPD in five years and 165 GCPD in 10 years. Hopefully, when the plan is revised in 2019, we will see better success in achieving our goals. We will continue to submit our annual conservation plan updates to the TWDB as required and will continue to monitor the effectiveness / efficiency of the plan. A copy of the entire plan is attached for review. The public works department recommends that the City Commission adopt Ordinance No. 1014, approving the updated water conservation plan. City of Canyon  ORDINANCE NO. 1014 AN ORDINANCE OF THE CITY OF CANYON, TEXAS, ADOPTING A WATER CONSERVATION PLAN; ESTABLISHING GOALS FOR THE REDUCTION OF WATER CONSUMPTION; REDUCING THE LOSS AND WASTE OF WATER; IMPROVING EFFICIENCY IN THE USE OF WATER; AND EXTENDING THE LIFE OF CURRENT WATER SUPPLIES; IN COMPLIANCE WITH THE REQUIREMENTS OF THE TEXAS WATER CODE AND THE TCEQ AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Canyon, Texas recognizes that the amount of water available to the City and its water utility customers is limited and subject to depletion; WHEREAS, the City recognizes that natural limitations cannot guarantee an uninterrupted water supply for all purposes; WHEAREAS, Section 13.146 of the Texas Water Code and applicable rules of the Texas Commission on Environmental Quality require certain public water supply systems in Texas to prepare a water conservation plan; and WHEREAS, as authorized under law, and in the best interests of the citizens of Canyon, Texas, the City Commission of the City of Canyon, Texas deems it expedient and necessary to establish certain rules and policies for the promotion and encouragement of water conservation on an ongoing basis; NOW THEREFORE, BE IT ORDAINED BY THE CITY OF CANYON, TEXAS; SECTION 1. That the City of Canyon, Water Conservation Plan attached hereto as Exhibit “A” and made part hereof for all purposes be, and the same is hereby, adopted as the official policy of the City. SECTION 2. That the City of Canyon, designates the City Manager, Director of Public Works, or their designees, to be the officials responsible for the implementation and enforcement of the Water Conservation Plan. SECTION 3. That all ordinances that are in conflict with the provisions of this ordinance be, and the same are hereby, repealed and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. 1 SECTION 4. Should any paragraph, sentence, subdivision, clause, phrase, or section of this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole or any part of provision thereof, other than the part so declared to be invalid, illegal or unconstitutional. SECTION 5. This ordinance shall take effect immediately from and after its passage. ADOPTED BY THE CITY COMISSION OF THE CITY OF CANYON, TEXAS, on the 20th day of October, 2014. APPROVED: QUINN ALEXANDER, MAYOR ATTESTED TO: Gretchen Mercer, City Secretary 2  AGENDA To: Mayor and City Commission From: Danny Cornelius, Director of Code Enforcement Date: October 14, 2014 Re: Hold Public Hearing and Consider and Take Appropriate Action on Ordinance No. 1008, Amending Chapter 156, Zoning Code, of the City of Canyon Code of Ordinances, by Adding Section 5.13 Alcoholic Beverage Sales; Providing for Severability; Providing for Repealer; Providing for an Effective Date. Ordinance 1008 prohibits a sale of alcoholic beverages by a business within 300 feet of a church, public or private school, or public hospital except as provided by the Texas Alcoholic Beverage Code. It requires that subdivision and/or Potter/Randall Appraisal District maps be used to verify the separation distance. If a dispute exists, the applicant must engage the services of a Registered Public Land Surveyor, licensed in the State of Texas, to determine the separation distance. The ordinance establishes a variance process. Variances would be considered by the City Commission. Notices of the public hearing would be given in writing to all property owners within 300 feet and by publication in the Canyon News. Both notices must be given at least 10 days before the meeting. The application fee for a variance would be $100. The Planning and Zoning voted to recommend adoption of Ordinance 1008. City of Canyon  ORDINANCE NO. 1008 Alcoholic Beverage Sales AN ORDINANCE OF THE CITY OF CANYON, TEXAS, AMENDING CHAPTER 156, ZONING CODE, OF THE CITY OF CANYON CODE OF ORDINANCES, BY ADDING SECTION 5.13 ALCOHOLIC BEVERAGE SALES; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEALER; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS; the passage, promulgation, and enforcement of the provisions herein contained are determined necessary and advisable for the promotion of the general welfare of the community to carry out the governmental powers and police powers delegated to and possessed by the City of Canyon; and, WHEREAS; the Planning and Zoning Commission of the City of Canyon, recommended certain amendments to City of Canyon Code of Ordinances, Chapter 156, Zoning Code; and, WHEREAS; the City Commission finds that the proposed amendments to Chapter 156 as recommended by the Planning and Zoning Commission would be in the best interest of the City; and, WHEREAS; Section 109.33 of the Texas Alcoholic Beverage Code authorizes municipalities to enact regulations prohibiting the sale of alcoholic beverages by a dealer whose place of business is within 300 feet of a church, public or private school, or public hospital; NOW THEREFORE: BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS; SECTION 1: That Chapter 156, Section 5.13, Alcoholic Beverage Sales is hereby adopted as follows: Definitions Alcoholic Beverage – Alcohol, or any beverage containing more than one-half of one percent of alcohol by volume, which is capable of use for beverage purposes, either alone or when diluted. Private School – Private school, including a parochial school that offers a course of instruction for students in one or more grades from kindergarten through grade 12 and has more than 100 students enrolled and attending courses at a single location. Public Hospital – Facilities, supported by public funds, that provide care or treatment for the medical, psychiatric, obstetrical, or surgical treatment of care recipients that are incapable of self-preservation. 1 Public School – A school that is supported, in whole or in part, by public funds. Sales near a Church, School, or Hospital No person shall sell alcoholic beverages if the place of business is within three hundred (300) feet of a church, public or private school, or public hospital except as provided by the Texas Alcoholic Beverage Code. The Code Enforcement Department shall use subdivision plats and/or Potter/Randall Appraisal District maps to verify the distance requirements have been met. If a dispute exists, it shall be the applicant’s responsibility to engage the services of a Registered Public Land Surveyor, licensed in the State of Texas, to determine the separation distance. The City Commission may allow variances to these regulations if the Commission determines that that enforcement of the regulation in a particular instance is not in the best interest of the public, constitutes waste or inefficient use of land or other resources, creates an undue hardship on an applicant for a license or permit, does not serve its intended purpose, is not effective or necessary, or for any other reason the Commission, after due consideration of the equities of the situation, determines is in the best interest of the community. The City Commission shall consider any variances after a public hearing. Public notice of the hearing shall be given by written notice to all owners of real property lying within 300 feet of the property and by publication in a newspaper of general circulation in the City. Both the written and the published notice shall be given at least 10 days prior to the date set for the hearing. Upon filing of any application for a variance request, the applicant shall pay to the City of Canyon the sum $100. The City reserves the right to amend, modify, change, or waive this application fee at its discretion. SECTION 2: Severability. If any provision, section, subsection, clause, or the application of same to any person or set of circumstances for any reason is held to be unconstitutional, void or invalid or for any reason unenforceable, the validity of the remaining portions of this ordinance or the application thereby shall remain in effect, it being the intent of the City Commission of the City of Canyon, Texas in adopting this ordinance, that no portion thereof or provision continued herein shall become inoperative or fail by any reasons of the unconstitutionality of any other portion or provision. SECTION 3: Repealer. All ordinances, parts of ordinances, resolutions, and parts of resolutions in conflict with this ordinance are hereby repealed to the extent of conflict with this ordinance. 2 SECTION 4: Effective Date. This ordinance shall become effective immediately. INTRODUCED AND PASSED by the City Commission of the City of Canyon, Texas on the 20th day of October, 2014 ________________________ Quinn Alexander, Mayor ATTEST: __________________________ Gretchen Mercer, City Clerk 3 Planning and Zoning Commission Meeting September 29, 2014 The Planning and Zoning Commission of the City of Canyon met in regular session at 4:00 pm in the City Commission Chambers of the Civic Complex. Chairman Bill Craddock presided over the meeting with the following Commissioners in attendance: Vice Chairman Joe Shehan, John Pletcher, Jon Davis, Kevin Luetkahans, Clay Stark, and Andy Carter. Commissioners Kent Meyer and Bobbie Jo Krutsch were unable to attend. Also present were the following City Staff: City Manager Randy Criswell, Assistant City Manager Chris Sharp, Assistant City Manager Jon Behrens, and Director of Code Enforcement Danny Cornelius. Item 1: Call to Order. Chairman Craddock called the meeting to order at 4:05 pm. Item 2: Approval of Minutes from September 15, 2014. Vice Chairman Shehan moved, duly seconded by Commissioner Carter to approve the minutes of September 15, 2014. Motion carried unanimously. Item 3: Consider and Take Appropriate Action on Ordinance No. 1008, Amending Chapter 156, Zoning Code, of the City of Canyon Code of Ordinances, by Adding Section 5.13 Alcoholic Beverage Sales. Director of Code Enforcement Danny Cornelius presented the ordinance for consideration. Mr. Cornelius explained that the ordinance would prohibit the sale of alcoholic beverages by a place of business within 300 feet of a church, public or private school, or public hospital except as provided by the Texas Alcoholic Beverage Code. The ordinance would require that subdivision plats and/or Potter/Randall Appraisal District maps be used by the Code Enforcement Department to verify the separation distance. If a dispute exists, the applicant must engage the services of a Registered Public Land Surveyor, licensed in the State of Texas, to determine the separation distance. The ordinance would also establish a variance process. Variance requests would be considered by the City Commission and notices of the public hearing would be given by written notice to all owners within 300 feet of the property and by publication in a newspaper of general circulation in the City. Both the written and the published notice would be given at least 10 days prior to public hearing. The application fee for a variance would be $100. Vice Chairman Shehan moved, duly seconded by Commissioner Pletcher to schedule a public hearing to consider adoption of the ordinance as presented. The motion passed unanimously. Item 5: Adjourn. Chairman Craddock adjourned the meeting. Bill Craddock, Chairman, P & Z ATTEST: Gretchen Mercer, City Clerk Planning and Zoning Commission Meeting October 13, 2014 The Planning and Zoning Commission of the City of Canyon met in regular session at 4:00 pm in the City Commission Chambers of the Civic Complex. Chairman Bill Craddock presided over the meeting with the following Commissioners in attendance: Vice Chairman Joe Shehan, John Pletcher, Jon Davis, Kevin Luetkahans, Clay Stark, Andy Carter, Kent Meyer, and Bobbie Jo Krutsch. Commissioner Jon Davis was unable to attend. Also present were the following City Staff: City Manager Randy Criswell, Assistant City Manager Chris Sharp, and Director of Code Enforcement Danny Cornelius. Item 1: Call to Order. Chairman Craddock called the meeting to order at 4:03 pm. Item 2: Approval of Minutes from September 29, 2014. Vice Chairman Shehan moved, duly seconded by Commissioner Carter to approve the minutes of September 29, 2014. Motion carried unanimously. Item 3: Hold Public Hearing to Consider and Take Appropriate Action on Ordinance No. 1008, Amending Chapter 156, Zoning Code, of the City of Canyon Code of Ordinances, by Adding Section 5.13 Alcoholic Beverage Sales. Chairman Craddock opened the public hearing at 4:04 pm. No individuals asked to speak and the public hearing was closed. Director of Code Enforcement Danny Cornelius presented the ordinance for consideration. Mr. Cornelius explained that the ordinance would prohibit the sale of alcoholic beverages by a business within 300 feet of a church, public or private school, or public hospital except as provided by the Texas Alcoholic Beverage Code. The ordinance would require that subdivision plats and/or Potter/Randall Appraisal District maps be used by the Code Enforcement Department to verify the separation distance. If a dispute exists, the applicant must engage the services of a Registered Public Land Surveyor, licensed in the State of Texas, to determine the separation distance. The ordinance would also establish a variance process. Variance requests would be considered by the City Commission. Notices of the public hearing would be given in writing to all owners within 300 feet of the property and by publication in a newspaper of general circulation in the City. Both the written and the published notice would be given at least 10 days prior to public hearing. The application fee for a variance would be $100. Commissioner Pletcher moved, duly seconded by Commissioner Luetkahans to withdraw the previous recommendation because of erroneous information. The previous recommendation would have allowed extended hours of operation until 2:00 am for holders of a mixed beverage late hours permit or a wine and beer retailer’s late hours permit. The motion passed unanimously. Commissioner Pletcher moved, duly seconded by Commissioner Stark to recommend approval of Ordinance 1008. The motion passed unanimously. Planning and Zoning Commission Meeting September 15, 2014 Page 2 of 2 Item 5: Adjourn. Chairman Craddock adjourned the meeting. Bill Craddock, Chairman, P & Z ATTEST: Gretchen Mercer, City Clerk  AGENDA To: Mayor and City Commission From: Danny Cornelius, Director of Code Enforcement Date: October 8, 2014 Re: Consider and Take Appropriate Action on Ordinance No. 1016, Amending Title XI, Business Regulations, of the City of Canyon Code of Ordinances, by Adding Chapter 117, Alcoholic Beverages; Providing for Severability; Providing for Repealer; Providing for Penalty; Providing for an Effective Date. In preparation for the November Local Option Election, staff has prepared the attached ordinance. Section 11.38 of the Texas Alcoholic Beverage Code allows the governing body of a city to collect a fee not to exceed one-half the state fee for each permit issued for premises located within the city or town. It is the staff recommendation that Ordinance 1016 be adopted. City of Canyon  ORDINANCE NO. 1016 Alcoholic Beverages AN ORDINANCE OF THE CITY OF CANYON, TEXAS, AMENDING TITLE XI, BUSINESS REGULATIONS, OF THE CITY OF CANYON CODE OF ORDINANCES, BY ADDING CHAPTER 117, ALCOHOLIC BEVERAGES; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEALER; PROVIDING FOR PENALTY; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS; the passage, promulgation, and enforcement of the provisions herein contained are determined necessary and advisable for the promotion of the general welfare of the community to carry out the governmental powers and police powers delegated to and possessed by the City of Canyon; and, WHEREAS; the Texas Alcoholic Beverage Code allows the governing body of a city to levy and collect, from alcoholic beverage permit and license holders, a fee not to exceed one-half the state fee for each permit issued for premises located within the city; NOW THEREFORE: BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS; SECTION 1: That Chapter 117, Alcoholic Beverages, is hereby adopted as follows: Section 117.01 License and permit fees (A) Except as otherwise provided by V.T.C.A., Alcoholic Beverage Code, each holder of a State permit issued pursuant to the provisions of the Alcoholic Beverage Code shall pay the City a fee equal to one-half the fee paid to the State for such permit. (B) Except as otherwise provided by V.T.C.A., Alcoholic Beverage Code, each holder of a State license issued pursuant to the provisions of the Alcoholic Beverage Code shall pay the City a fee equal to one-half the fee paid to the State for such license. (C) All fees levied by this section are due and payable at the time the State license and permit fees are due. SECTION 2: Severability. If any provision, section, subsection, clause, or the application of same to any person or set of circumstances for any reason is held to be unconstitutional, void or invalid or for any reason unenforceable, the validity of the remaining portions of this ordinance or the application thereby shall remain in effect, it being the intent of the City Commission of the City of Canyon, Texas in adopting this ordinance, that no portion thereof or provision continued 1 herein shall become inoperative or fail by any reasons of the unconstitutionality of any other portion or provision. SECTION 3: Repealer. All ordinances, parts of ordinances, resolutions, and parts of resolutions in conflict with this ordinance are hereby repealed to the extent of conflict with this ordinance. SECTION 4: Penalty. It is an offense to violate any part of this ordinance, punishable upon conviction in accordance with Section 10.99 of the City of Canyon Code of Ordinances. SECTION 5: Effective Date. This ordinance shall be published according to law and become effective ten (10) days from the date of passage. INTRODUCED AND PASSED by the City Commission of the City of Canyon, Texas on the 20th day of October, 2014 ________________________ Quinn Alexander, Mayor ATTEST: __________________________ Gretchen Mercer, City Clerk 2  AGENDA To: Mayor and City Commission From: Randy Criswell, City Manager Date: October 20, 2014 Re: Consider And Take Appropriate Action on Ordinance No. 1015, Approving A Settlement Agreement Between The Alliance of Xcel Municipalities and Southwestern Public Service Company. _________________________________________________________________________ As I’m sure you remember, in January, 2014, Southwestern Public Service Company (SPS) filed an application to increase its base rates by approximately $81.5 million in annual revenue, which represents an increase in base revenue of about 17.63%. Shortly thereafter, we took action on SPS’s Statement of Intent and suspended SPS’s proposed rate increase to allow the Alliance of Xcel Municipalities (AXM) and its special counsel and rate consultants to review SPS’s application. After extensive review by the City’s special counsel and rate consultants, and direction from the AXM Steering Committee, the AXM cities, SPS, and the parties in the rate proceeding pending at the Public Utility Commission of Texas (“PUCT”), have reached a Settlement on the increase to be allowed. The major points of the Settlement are as follows:  An increase in SPS’ base-rate revenue of $37 million (about an 8% increase) as compared to SPS’ requested increase of $81.5 million (about a 17.6% increase).  The new rates will be effective for service rendered on and after June 1, 2014, which is the date rates would have gone into effect if SPS hadn’t agreed to extend the time for final action on its application. SPS will in the near future seek approval of a temporary surcharge on customers’ bills to recover the amounts it forewent between June 1, 2014 and October 30, 2014, or the date of final action on SPS’ application to increase rates, whichever is later.  The Residential Customer Charge remains unchanged at $7.60. This is particularly helpful for low-income or fixed-income ratepayers because high customer charges inhibit their ability to lower their bill by reducing consumption.  The effect on the average residential bill will be about $10/month in summer, and $6/month in winter.  SPS agrees to retain the current method for collecting franchise fees. Under the current method of collecting franchise fees, an overall franchise fee equivalent to approximately two percent of gross revenues is included in base rates and paid by all customers inside and outside municipalities. The actual franchise fee factor used to calculate the amount of franchise fees to be included in base rates varies from city to city. Franchise fees in excess of the amount produced by each city’s baseline franchise fee factor are collected from only those customers located within the municipality that authorized the additional franchise fee. City of Canyon  AGENDA ALLIANCE OF XCEL MUNICIPALITIES The Alliance of Xcel Municipalities (“AXM”) was organized by a number of municipalities served by SPS, and has participated in all of SPS’ major rate proceedings for over 8 years. The law firm of Herrera & Boyle, PLLC represented AXM in the rate case involving SPS along with rate experts engaged by Herrera & Boyle with AXM’s approval. RATE CASE EXPENSES Cities, by statute, are entitled to recover their reasonable rate case expenses from the utility. Under the Settlement AXM’s rate case expenses and SPS’ expenses are included in the $37 million base rate increase and will be amortized over a three-year period beginning on June 1, 2014; therefore, there is no separate surcharge for recovery of rate case expenses. FINAL ACTION AND RECOMMENDATION The AXM’s special counsel and consultants are of the opinion that the Settlement is a reasonable result and believe that the outcome is well within the range of likely outcomes from a fully litigated proceeding at the PUCT, helps minimize rate case expenses materially, while at the same time resulting in just and reasonable rates. In short, AXM’s special counsel and consultants and the AXM Steering Committee, believe the Settlement is a sound result and recommend approval of the Settlement Agreement and its resulting rates. The City must take action no later than October 30, 2014. Ordinance No. 1015 is recommended for Adoption. City of Canyon  ORDINANCE NO. 1015 AN ORDINANCE OF THE CITY OF CANYON APPROVING A SETTLEMENT AGREEMENT BETWEEN THE ALLIANCE OF XCEL MUNICIPALITIES (“AXM”) AND SOUTHWESTERN PUBLIC SERVICE COMPANY (“SPS” OR “COMPANY”) REGARDING THE COMPANY’S STATEMENT OF INTENT TO CHANGE ELECTRIC RATES IN ALL CITIES EXERCISING ORIGINAL JURISDICTION; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE SETTLEMENT AGREEMENT AND FINDING THE RATES TO BE SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; FINDING THE CITY’S RATE CASE EXPENSES REASONABLE; DIRECTING SPS TO REIMBURSE THE CITY ITS REASONABLE RATE CASE EXPENSES; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETING ACT; DECLARING AN EFFECTIVE DATE; REPEALING ANY PRIOR RESOLUTIONS INCONSISTENT WITH THIS ORDINANCE AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND LEGAL COUNSEL WHEREAS, the City of Canyon, Texas (“City”) has exclusive original jurisdiction as a regulatory authority over Southwestern Public Service Company (“SPS” or “Company”) rates, operations, and services within the City; and WHEREAS, the City is also an electric utility customer of SPS, and has an interest in SPS’s rates and charges; and WHEREAS, SPS filed a Statement of Intent with the City on or about January 7, 2014 to increase its annual revenue requirement by approximately $81.5 million on a system-wide basis, which represents an increase in base revenue of approximately 17.6%, and which included an increase in residential base rates of approximately 18%; and WHEREAS, the City took action to suspend the effective date and to coordinate a response to SPS’s filing with other similarly situated municipalities (such participating cities are referred to herein as the Alliance of Xcel Municipalities (“AXM”)); and WHEREAS, the City took action on or before February 11, 2014 to suspend the effective date; and PAGE 1 of 5  WHEREAS, one of AXM’s goals is to minimize rate-case expenses to the extent reasonable, that otherwise would result from lengthy, contested rate-case proceedings before the Public Utility Commission of Texas (“PUCT”) and through the appellate process in the courts for the pending rate case; and WHEREAS, AXM authorized its attorneys and experts to formulate and review reasonable settlement positions to resolve SPS’ pending request to increase rates; and WHEREAS, AXM’s attorneys met numerous times with the Company to negotiate a Settlement Agreement resolving the issues raised by the Company’s Statement of Intent filing; and WHEREAS, after extensive review and analysis, AXM’s attorneys and experts found that SPS’s initially proposed increase in revenue and its initially proposed rates are unreasonable; and WHEREAS, AXM’s attorneys and experts have evaluated what a likely outcome from a fully-litigated proceeding would be and are of the opinion that the increase of approximately $37 million noted in the negotiated Settlement Agreement compares favorably with a likely outcome from a fully-litigated proceeding; and WHEREAS, after extensive review and analysis, AXM’s attorneys and experts found that the significantly lower increase of approximately $37 million instead of the $81.5 million increase initially proposed by SPS is reasonable; and WHEREAS, as part of the Settlement Agreement, SPS’s existing rates are deemed interim as of June 1, 2014; and WHEREAS, AXM’s attorneys and experts and AXM’s Steering Committee, based on the advice of its attorneys and experts, recommend that AXM’s members approve the negotiated Settlement Agreement and attached tariffs; and WHEREAS, under the Public Utility Regulatory Act, the City has a right to reimbursement of its reasonable rate-case expenses and SPS has an obligation to reimburse the City’s reasonable rate-case expenses; and WHEREAS, the attached tariffs implementing new rates are consistent with the Settlement Agreement and are just, reasonable, and in the public interest; and PAGE 2 of 5  WHEREAS, the Settlement Agreement as a whole is in the public interest; NOW THEREFORE, THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS HEREBY ORDAINS THAT: Section 1. The findings set out in the preamble are in all things approved and incorporated herein as if fully set forth. Section 2. That the City Commission finds that the Settlement Agreement, which is attached hereto Attachment A and incorporated herein, is in the public interest and is hereby endorsed in all respects. Section 3. That SPS’s existing rates are deemed interim as of June 1, 2014, and are found unreasonable upon the implementation of the rates set forth in the Settlement Agreement. Section 4. That the revenue and resulting rates set forth in the Settlement Agreement and schedule of rates and tariffs for electric service provided by SPS, which are attached to the Settlement Agreement as “Exhibit B” appended to this Ordinance, are just and reasonable, and are hereby adopted for service rendered on and after June 1, 2014. Section 5. That rates under the Settlement Agreement shall be effective for service rendered on and after June 1, 2014. Section 6. That SPS shall seek the City’s approval of any surcharge that may be necessary to recover revenue foregone by SPS under rates pursuant to the Settlement Agreement and its current rates from June 1, 2014 to the later of October 30, 2014, or when final action is to approve the rates under the Settlement Agreement. Section 7. That to the extent any resolution or ordinance previously adopted by the Commission is inconsistent with this Ordinance, it is hereby repealed. PAGE 3 of 5 Section 8. That the meeting at which this Ordinance was approved was in all things conducted in 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 provision 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 this Ordinance shall become effective from and after its passage. Section 11. The City Secretary or other appropriate city official shall notify SPS of this Ordinance by sending a copy of the Ordinance to James M. Bagley, Manager, Regulatory Administration Xcel Energy Services Inc., P.O. Box 1261, Amarillo, Texas 79105, and AXM shall be notified by sending a copy of this resolution to Mr. Marcus Norris, City Attorney, City of Amarillo, Texas by fax to 806-378-3018. PASSED AND APPROVED this 20th day of October, 2014. QUINN ALEXANDER, MAYOR ATTEST: Gretchen Mercer, City Secretary PAGE 4 of 5