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 23rd day of March, 2015, 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. 4. Approval of the Minutes of the Meeting of March 2, 2015. 5. Approval of the Minutes of the Meeting of March 9, 2015. 6. Public Forum – Comments from Interested Citizens. 7. Proclamation of Proclamation Honoring the Canyon High Lady Eagles Basketball Team for Their State Championship. 8. Update on Aquatic Feasibility Study from Committee Chair Jimmy Lackey. 9. Consider and Take Appropriate Action on City of Canyon’s Audit for FY 2013-2014 as Presented by the Audit Committee and Doshier Pickens & Frances, LLC. 10. Consider and Take Appropriate Action on Recommendations from the Board of City Development (BCD) for 2015 Budget. 11. Consider and Take Appropriate Action on Ordinance No. 1021, Relating to Special Events, Block Parties and Parades. 12. Consider and Take Appropriate Action on Resolution No. 05-2015 for 380 Status. 13. Consider and Take Appropriate Action on Ordinance No. 1022, Atmos Rate Review Mechanism Agreement. 14. Executive Session Pursuant to Texas Government Code §551.072 Real Property. 15. Consider and Take Appropriate Action on Items Discussed in Executive Session. 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 20th day of March 2015. Gretchen Mercer, City Clerk City of Canyon City Commission Meeting March 2, 2015 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 Quinn Alexander presided over the meeting with the following Commissioners in attendance: Mayor Pro-Tem Jed Welch, Gary Hinders, David Logan and Justin Richardson. Also present were the following City Staff: City Manager Randy Criswell, Assistant City Manager Chris Sharp, City Secretary Gretchen Mercer, Assistant City Manager for Special Projects Jon Behrens, Code Enforcement Director Danny Cornelius, Chief of Police Dale Davis, Director of Public Works Dan Reese, 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 5:30 p.m. Item 2. Invocation. Commissioner Logan gave the invocation. Item 3. Pledge of Allegiance. Gage Lewter, Jace Owen, Tanner Owen, Lucas Bradshaw, Barrett Bradshaw, Alex Wilson, John Paul Klose, Tyler Schoenenber, Sam Seidenberger, Hope Gleghorn, and Tatum Keller, Members of Texas 4-H, led the Pledge of Allegiance. Item 4. Approval of Minutes of the Meeting of February 2, 2015. Commissioner Logan moved, duly seconded by Mayor Pro-Tem Welch, to approve the minutes of February 2, 2015. Motion carried unanimously. Item 5. Public Forum – Comments from Interested Citizens. No comments were made. Item 6. Consider and Take Appropriate Action on the Second and Final Reading of Resolution No. 01-2015, Approving the Purchase of Property Consisting of 15 Acres Situated in Section 35, Block B-5, H. &G.N. Railroad Survey, Abstract Number S- 13535, Randall County, Texas, by the Canyon Economic Development Corporation. Business and Community Development Director Evelyn Ecker presented Resolution No. 01-2015 for the second and final reading. After discussion, Commissioner Richardson moved, duly seconded by Commissioner Hinders to adopt Resolution No. 01-2015 as presented. Motion carried unanimously. City Commission Meeting March 2, 2015 Page 2 of 4 RESOLUTION NO. 01-2015 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING THE PURCHASE OF PROPERTY CONSISTING OF 15 ACRES SITUATED IN SECTION 35, BLOCK B – 5, H. & G.N. RAILROAD SURVEY, ABSTRACT NUMBER S-13535, RANDALL COUNTY, TEXAS, BY THE CANYON ECONOMIC DEVELOPMENT CORPORATION. Item 7. Consider and Take Appropriate Action on an Update of Repairs to a Substandard Structure at 1615 4th Avenue. Director of Code Enforcement Danny Cornelius gave a brief update on the ongoing repairs to the substandard structure at 1615 4th Ave. Mr. Cornelius said the Commission requested that the property owners present a timeline of completion at the next meeting. Ms. Brent along with Mr. Spriggs, her attorney, presented a timeline and estimates for the completion of repairs to the building. Mr. Spriggs stated the electrical was being completed by Patrick Electric at this time. Mr. Spriggs said Ms. Brent was actively trying to sell the building but would continue the repairs until they were done or the property was sold. Commissioners commented the building improvements were evident and it was looking good. After discussion, Mayor Pro-Tem Welch moved, duly seconded by Commissioner Logan to allow repairs to progress with the presented timeline and a 90 day report back to the Commission. Motion carried unanimously. Item 8. Consider and Take Appropriate Action on Bids Received for Sealcoating, 2015 Project. Public Works Director Dan Reese presented bids opened for sealcoating to take place in the spring of 2015. BID TABULATION SHEET SEALCOAT 2015 January 26, 2015 2:00 pm Base Bid Estimated Quantity Construction of single sealcoating using precoated rock. 160,700 SY Unit Price Ext. Amount # Calendar Days to Complete Lipham Asphalt $1.900 $305,330.00 45 Freeman Paving $2.070 $332,649.00 45 G&G Operators $2.150 $345,505.00 90 International Slurry Seal $4.050 $650,835.00 15 Mr. Reese stated the City Engineer and City Staff recommended awarding the sealcoating contract to the low bidder, Lipham Asphalt Paving, with a bid of $305,330.00. City Commission Meeting March 2, 2015 Page 3 of 4 After discussion, Commissioner Hinders moved, duly seconded by Commissioner Richardson to award the bid for Sealcoating 2015 to the low bidder Lipham Asphalt in the amount $305,330.00 as recommended by staff. Motion carried unanimously. Item 9. Consider and Take Appropriate Action Authorizing Staff to Enter Into an Interlocal Cooperative Agreement with PRPC on the Panhandle Electronic Warrant System (PEWS). Chief of Police Dale Davis presented the PEWS program for consideration. Chief Davis said this program creates a consortium of Panhandle Local Governments, representatives of the Panhandle’s Judicial Community and Local State Agencies. Chief Davis said PEWS would establish, maintain and administer a system for the electronic execution and delivery of search warrants and other related court documents improving the judicial process, time management and public safety functioning as an electronic connection between law enforcement and magistrates. Chief Davis said the City of Canyon would be responsible for the annual activation fee of $250.00 for participation and then $2.50 per transaction for the first 500 transactions. After discussion, Commissioner Logan moved, duly seconded by Commissioner Richardson to authorize staff to enter into an Interlocal Cooperation Agreement with the PRPC to participate in the PEWS system. Motion carried unanimously. Item 10. Consider and Take Appropriate Action on 2014 Annual Code Enforcement Report. Director of Code Enforcement Danny Cornelius gave a summary of activity in the Code Enforcement Department for 2014. After discussion, Commissioner Richardson moved, duly seconded by Commissioner Hinders to approve the 2014 Annual Code Enforcement Report as presented. Motion carried unanimously. Item 11. Executive Session Pursuant to Texas Government Code §551.072 Real Property, §551.087 Economic Development Negotiations, and §551.074 Personnel: Appointments to Boards and Commissions (Zoning Board of Adjustment). Mayor Alexander indicated the Commission would adjourn into executive session at 6:02 pm. Item 12. Consider and Take Appropriate Action on Items Discussed in Executive Session. Upon returning from executive session at 8:34 pm, the following action was taken. Commissioner Richardson moved, duly seconded by Commissioner Logan, to appoint Pat Willilams to the Zoning Board of Adjustment replacing outgoing board member David Yarbrough. Motion carried unanimously. Commissioner Hinders moved, duly seconded by Mayor Pro-Tem Welch, that the City Commission authorize the purchase of groundwater rights in, under and upon a 467.97 acre tract of land in Sections 45 and 46, Block 6, I&GN Ry. Co. Survey, Randall County Texas, from the Nicklaus Family Trust at a purchase price of $1,000 per acre based upon an on the ground City Commission Meeting March 2, 2015 Page 4 of 4 survey by Norris Stevens, Stevens Surveying Co., LLC; and, that the City Manager be designated as agent for the City to contract for and close the transaction and execute all documents required to conclude the purchase. Motion carried unanimously. 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 City Commission Meeting March 9, 2015 The City Commission of the City of Canyon met for a Special Meeting at 5:30 p.m. in the City Commission Chambers of the Civic Complex. Mayor Quinn Alexander presided over the meeting with the following Commissioners in attendance: Mayor Pro-Tem Jed Welch, David Logan and Justin Richardson. Commissioner Gary Hinders was unable to attend. Also present were the following City Staff: City Manager Randy Criswell, Assistant City Manager Chris Sharp, City Secretary Gretchen Mercer, Assistant City Manager for Special Projects Jon Behrens, and Director of Public Works Dan Reese. Item 1. Call to Order. Mayor Alexander called the meeting to order at 5:30 p.m. Invocation. Mayor Pro-Tem Welch gave the invocation. Item 2. Consider and Take Appropriate Action on Resolution No. 04-2015, A Resolution of the City Commission of the City of Canyon, Texas Authorizing the Submission of an Economic Development Administration Application to the U.S. Department of Commerce for the Investments for Public Works and Economic Development Facilities Program; and Authorizing the City Manager to Act as the City’s Executive Officer and Authorized Representative in All Matters Pertaining to the City’s Participation in the Program. City Manager Randy Criswell presented Resolution No. 04-2015 for consideration. The Resolution would approve the submission of a EDA Grant application for sewer system improvements to serve the portions of town from 8th Street going west to about Brown Road. This would also serve some potential industry looking at coming to Canyon. Mr. Kyle Ingham representing the PRPC had indicated to staff a couple of weeks ago that there is money available for these grants, and no applicants. So we want to move quickly on this one because the next call isn’t until May. Mr. Criswell said the EDA grants are a 50/50 match. The application would be for a total of $580,200.00, with the City matching up to that amount. Mr. Ingham said this is a high estimate, but the amount would be sufficient to cover everything. Mr. Ingham said if anything was left over, approval could be gained to use the excess funds for qualified projects. After discussion, Commissioner Logan moved, duly seconded by Commissioner Richardson to approve Resolution No. 04-2015 as presented. Motion carried unanimously. RESOLUTION NO. 04-2015 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS, AUTHORIZING THE SUBMISSION OF AN ECONOMIC DEVELOPMENT ADMINISTRATION APPLICATION TO THE U.S. DEPARTMENT OF COMMERCE FOR THE INVESTMENTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT FACILITIES PROGRAM; AND AUTHORIZING THE CITY MANAGER TO ACT AS THE CITY'S EXECUTIVE OFFICER AND AUTHORIZED REPRESENTATIVE IN ALL MATTERS PERTAINING TO THE CITY'S PARTICIPATION IN THE PROGRAM. City Commission Meeting March 9, 2015 Page 2 of 2 Item 3. 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: Jon Behrens, Assistant City Manager for Special Projects Date: March 16, 2015 Re: Aquatic Feasibility Study Jimmy Lackey, Chair of the Aquatic Feasibility Study Committee, will be presenting a brief update of the study process. Mark Hatchel of Kimley-Horn and George Deines of Counsilman- Hunsaker have been scheduled for the April 20 Commission meeting to present the results of the Family Aquatic Center Feasibility Study. City of Canyon  AGENDA To: Mayor and City Commission From: Chris Sharp, Assistant City Manager Date: March 17, 2015 Re: Consider and Take Appropriate Action on the 2013-2014 Audit as Presented by the Audit Committee and Doshier, Pickens & Francis. The Audit Committee meet with auditors from Doshier, Pickens & Francis on March 10th to review and discuss the city’s audit. The audit committee consists of the Mayor, Commissioner Gary Hinders, Randy and myself. A copy of the audit will be uploaded for your review. Key points of the audit are; • City was issued a clean audit opinion • Overall increase in net position this year was $ 1,035,456. Of this, governmental activities increased by $ 1,008,846, business-type activities increased by $ 26,610. • Ending net position for the fiscal year reported is $ 52,750,325 • The unrestricted net position for Government Activities is $ 8,871,949 meaning the City has more than 6.8 months of operational reserves (meaning we could operate our governmental activities for 6.8 months if we collected $0 in revenues) • Cash and Cash equivalents is $ 1,747,926 • Unrestricted net position in the utility fund is $ 6,611,978 It is the recommendation of the Committee that the Audit be approved. City of Canyon  AGENDA To: Mayor and City Commission From: Chris Sharp, Assistant City Manager Date: March 17, 2015 Re: Consider and Take Appropriate Action of Recommendations from Board of City Development (BCD) for 2015 Budget . The Board of City Development met on March 5, 2015 to review and consider the proposed budget for the 2015 fiscal year. Requests were received from WTAMU, Texas, PPHM, Main Street, Canyon Chamber of Commerce, Kids Inc. and the Palo Duro Creek Women’s Golf Association. As you will recall, money for this budget comes from Hotel Occupancy Tax (HOT) which is collected by our local hotels. The new request from the PDC Women’s Golf Association is for assistance with hosting the 24th Annual Western Lone Star Senior Ladies Golf Tournament to be held this summer. There is expected to be over 100 participants with many of them spending the night in our hotels. Collections for 2014 were up 8.4% from the previous year as total collections came in at $181,842. The Board feels confident that collections will be at least the same if not more for 2015. Supporting documentation is attached. The Board unanimously voted to recommend a budget of $173,400 for 2015. These allocations are as follows: Billboard Lease $6,000 Xcel Energy $1,400 Texas $34,000 WTAMU $34,000 PPHM $34,000 Chamber of Commerce $33,000 Canyon Main Street $25,000 Kids Inc. $3,000 PDC Women’s Golf Assoc. $3,000 Total $173,400 Total amount of reserves for the BCD after all 2014 requests were paid is around $24,000. Recommendation: Staff recommends approval of the 2015 BCD budget as presented. City of Canyon BCD Funding Requests - 2015 Anticipated Budget Total Available $170,000 Amount in account as of 12/31/14 $41,843 Fund Balance is about $24,000 Entity Budgeted Requested Budget Proposed Budget Last Year Billboard Land Lease $ 6,000.00 $6,000.00 $6,000.00 Xcel Energy (electricity for billboard) $ 1,400.00 $1,400.00 $1,400.00 Texas Panhandle Heritage Foundation $ 34,000.00 $35,000.00 $34,000.00 Advertising, Promotion WTAMU $ 34,000.00 $75,000.00 $34,000.00 Student Recruitment, Special Events Panhandle Plains Historical Museum $ 34,000.00 $45,000.00 $34,000.00 Marketing, Website Development, Promotional Efforts at conferences, Administrative Costs Chamber of Commerce $ 33,000.00 $95,990.00 $33,000.00 Texas Plains Trail Convention $ 3,500.00 July 4th Celebration $ 60,000.00 Fair on the Square $ 7,500.00 Website Development $ 4,800.00 Chamber Brochure Production $ 11,000.00 Hotel/Travel/Restaurant Co-op Ads $ 9,190.00 Canyon Main Street $ 25,000.00 $35,000.00 $25,000.00 Advertising Kids Inc $ 3,000.00 $3,000.00 $3,000.00 Basketball Tournament of Champions Palo Duro Creek Women's Golf Assoc. $ - $5,500.00 $3,000.00 24th Annual Western Lone Star Tourney TOTAL $170,400.00 $301,890.00 $173,400.00  AGENDA To: Mayor and City Commission From: Jon Behrens, Assistant City Manager for Special Projects Date: March 16, 2015 Re: Consider and Take Appropriate Acton on Ordinance No. 1021 Relating to Special Events, Block Parties and Parades. Canyon has traditionally had several community events each year which have drawn large crowds and we anticipate the growth of these events in the future. These events include: Fair on the Square, WTAMU Homecoming Parade, Canyon Fourth of July events, the Christmas Tree Lighting and Light Parade, and the Chamber of Commerce Cook Off. As these events grow and new events are brought into the community, it is important for the City to take a proactive approach to managing them. We have reviewed a number of event ordinances and associated application processes from around the state. From our evaluation it was clear that we needed to create ordinances and processes that will enable City staff to have a clearer picture of each event before granting permits for those events to occur. We believe that through a new application process City departments will be able to better assist event organizers in identifying potential problems and departments will have an appropriate amount of time to prepare for each event. It is the recommendation of City staff that Ordinance No. 1021 be adopted. City of Canyon  ORDINANCE NO. 1021 Chapter 98: Special Events, Block Parties and Parades General Provisions AN ORDINANCE OF THE CITY OF CANYON REPEALING SECTIONS 111.01 – 111.06, CODE OF ORDINANCES OF THE CITY OF CANYON, RESERVING SUCH SECTIONS FOR FUTURE USE, ADDING A NEW CHAPTER 98, RELATING TO SPECIAL EVENTS, BLOCK PARTIES AND PARADES, PROVIDING FOR A PENALTY, SEVERABILITY CLAUSE AND AN EFFECTIVE DATE; AND REPEALING ALL ORDINACES OR PARTS THEROF IN CONFLICT WITH THIS ORDINANCE. WHEREAS, the City Commission of the City of Canyon finds 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. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS: SECTION 1: That Chapter 11, Sections 111.01 thru 111.06 are deleted and marked as “reserved.” SECTION 2: That the Code of Ordinances shall be and hereby is amended by adding Chapter 98: Special Events, Block Parties and Parades. Sec. 98.00 Definitions: The following words and terms, when used in this ordinance, have the following meanings, unless the context clearly indicates otherwise. “APPLICANT’ a person who has filed a written application for an event permit. “BLOCK PARY” a small social or recreational gathering for which a public street, alley or sidewalk is temporary closed to vehicular traffic within a residential district and the participants either reside within the area of the street closing or are guest of such a resident. “EVENT” a cumulative term that means and refers to any or all of a Block Party, Special Event, Motorcade, Race, Parade, or any combination thereof. “EVENT PERMIT” a written authorization from the Chief of Police or designee to hold the requested event. “PARADE” any march or procession consisting of people, animals, vehicles of any type, or a combination thereof, upon any public street, sidewalk, or alley or combination thereof, which does not comply with normal and usual traffic regulations or controls. 1 “PERMITEE” person to whom an event permit is granted. “SPECIAL EVENT” a preplanned, single gathering event or series of related gatherings of people or attractions for a common purpose, including but not limited to, street fairs, arts and crafts shows, carnivals, circuses, rallies, public entertainments, or other similar events. Special Events are conducted primarily outdoors in public locations and may interfere with normal flow or regulation of pedestrian or vehicular traffic, and may require special city services, including but not limited to, street closure, provisions of barricades, special parking arrangements, special electrical services or special police or emergency services. The term does not include events held in residential structures, licensed premises, buildings not owned or controlled by the City, gatherings for athletic events that are held in facilities designed for athletic events. “RACE” a competition or series of competitions of speed or endurance between humans, motorized or other vehicles, or animals over a specified course or distance. “MOTORCADE” any organized procession of vehicles, upon any public street, sidewalk or ally that would need to disregard normal traffic control devices to proceed but would not require the closing of the street, sidewalk, or alley to other traffic. Sec. 98.01 Application/Permit Required It shall be unlawful for any person to hold an event, as defined in Section 98.0, without first having obtained an event permit from the City. Sec. 98.02 Exception to Permit Requirements The following events are exempt from the permitting process: (A) An event conducted entirely on the property of an educational institution; (B) An event wholly contained on property specifically designed or suited for the event and which holds a certificate of occupancy for such use including adequate parking; (C) Funeral or dignitary processions; (D) Athletic events that are held in facilities designed for athletic events; (E) City sponsored events; (F) First Amendment Activity conducted entirely on sidewalks, in public parks or on private property. 98.03 Permit Application and Fee Requirements Applicant seeking a permit shall file an application with the City upon forms provided by the City, which shall be accompanied with an application fee as currently established or as hereafter adopted by the City Commission from time to time. Sec. 98.04 Timeframes and Deadlines Applications shall be filed with the City of Canyon Police Department according to the following timeframes and deadlines: 2 (A) Application shall be filed not more than 365 days before the commencement of the proposed event. (B) Applications for a parade event permit shall be filed not less than forty-five (45) days prior to the event. (C) Applications for special event, race, or motorcade permits shall be filed not less than thirty (30) days prior to the event. (D) Applications for block party event permits shall be filed not less than fifteen (15) days prior to the event. (E) The Chief of Police may consider event applications submitted after filing deadlines where good and compelling cause is shown. Sec. 98.05 Standards for Issuance of Event Permit An event permit will be required and approved by the Chief of Police and other City officials, including, but not limited to, the Public Works Director, Fire Department Chief, Director of Code Enforcement, Director of Parks, and City Manager. Permits are issued in accordance with said standards and Section 98.05 of the Code of Ordinances. (A) The event will not unnecessarily interrupt the safe and orderly movement of traffic near its location or route. (B) The event will not require the diversion of a number of regular on-duty police officers to properly police the event locale or line of movement and the adjacent areas as to prevent adequate police protection for the City. (C) The concentration of people, animals, and vehicles at assembly points will not unduly interfere with proper fire and police protection or ambulance service to areas near such assembly points or the City. (D) A parade or motorcade is scheduled to move from its point of origin to its point of termination without unreasonable delays in route. (E) It is not likely to cause injury to person or property. (F) There will be adequate sanitation facilities and parking spaces available in or adjacent to any public assembly area for the estimated number of event attendees. (G) Other licenses and permits, restrictions, regulations, safeguards or other conditions deemed necessary by individual City departments, County officials, or State or Federal agencies, for the safe and orderly conduct of the event are requested, submitted, and approved (i.e. health permit applications, agreement with police department for police coverage, and agreement with public works, etc.). (H) Compliance with all applicable local, state, or Federal requirements is demonstrated. Sec. 98.06 Denial or Revocation of a Permit (A) The Chief of Police or designee shall deny issuance of an event permit if: (1) The event will conflict in time or location with another previously permitted event; (2) The applicant fails to comply with, or the event will violate, any City ordinance or any other applicable law; (3) The applicant makes or allows the making of a false or misleading statement or omission of material fact on an application; 3  (4) The applicant has violated this ordinance or has had an event permit revoked within the preceding twelve (12) months; (5) The applicant fails to provide proof of a license or permit required by any City ordinance or by other applicable law for the event; (6) The event would severely hinder the delivery of normal or emergency public services or constitutes a public threat; (7) The sole purpose of the parade or motorcade is the advertising of any product, goods, wares, or merchandise and is designed to be held purely for profit; (8) City officials make a finding contrary to the findings required to be made for issuance of a permit; (9) The applicant refuses to agree to, abide by, or to comply with all conditions of the permit and refuses to pay any additional costs as may be required by the City. (B) An event permit shall be revoked upon the following conditions: (1) If any City official finds that any of the provisions of this ordinance, another City ordinance, or other applicable law is being violated; (2) When, in the judgment of any of the above named City officials, a violation exists which requires immediate abatement, the City official shall have authority to revoke a special event permit in the absence or unavailability of the Chief of Police or designee; (3) The applicant made or allowed to be made a false or misleading statement or omission of material fact on an application that was not discovered until after the permit was issued; (4) Any permit issued pursuant to this ordinance may be summarily revoked by the City any time when by reason of disaster, public calamity, riot or other emergency, City officials determine that the safety of the public or property requires such revocation. (C) No event permit shall be denied nor shall the applicant be given less favorable consideration as to time, manner, or place based upon: 1. race, color, creed, religion, gender, domestic relationship status, parental status, sexual orientation, transgender, gender identity or gender expression, national origin, or political affiliation of the applicant and/or the participants of the event; 2. the message of the event, or the identity or associational relationships of the applicant and/or participants; or 3. any assumption or predictions as to the amount of hostility which may be aroused in the public by the content of speech or message conveyed by the event, provided that reasonable accommodation as to time, manner, and place may be required in order for the City to provide the resources necessary for police, fire and emergency services to preserve and protect public health, safety and welfare. 4 Sec. 98.07 Denial and Appellate Review The Chief of Police shall act upon a complete event application within ten (10) working days after the filing thereof. If the application is not approved, applicant will be notified via mailed letter and/or electronic communication notification, of the reasons for the permit denial. Applicants may appeal denied permit application to the City Manager within five (5) days of receipt of denial notification. Upon such appeal, the City Manager may reverse, affirm, or modify in any regard the determination of the Chief of Police. The City Manager will respond to applicant with the appeal results within five (5) working days of appeal receipt. Sec. 98.08 Posting of Permit The event permit shall be maintained at all times on the premises, and shall be made available to any City official. Sec. 98.09 Notice to Abutting Property Owners The City has the authority to require that applicant send notices, and provide documentation of notification, of the event to abutting property owners when in City officials’ judgment, that special event is on a scope and nature that will impact those owners. Sec. 98.10 Interference with Events No person shall knowingly join or participate in any event conducted under permit from the City in violation of any terms of said permit, nor knowingly join or participate in any permitted event without the consent and over the objection of the permittee, nor in any manner interfere with its progress or orderly conduct. Sec. 98.11 Additional City Services In the event that City departments, upon a review of the application, determine that an event may require the involvement of city personnel or facilities, the applicant shall be notified of the associated cost. (A)The Chief of Police shall determine whether and to what extent additional police services are reasonably necessary for events for traffic control and public safety. The decision will be based on; 1. Size, location, duration, time and date of the event; 2. History of the particular event; 3. Need to detour or preempt citizen travel and use of streets and sidewalks; 4. Presence of alcohol at the event. (B) If possible, without disruption of ordinary police services or compromise public safety, regularly scheduled on-duty personnel will police the event. (C) In the event it is determined, upon review of the application, that an event may require the special attention and involvement of City personnel or facilities which cause the City to incur 5 additional expenses, the applicant shall be notified. Prior to the issuance of an event permit, the applicant shall pay the estimated charges associated with the additional City expenses to the City and shall agree to pay any additional costs, which may arise, to the City as a result of the event within five working days of the date upon which the City informs the applicant of the amount of such additional charges. Should the applicant not pay such additional cost, no future event permits shall be issued to the same applicant, organization, or group for a period not to exceed a period of two years. Nothing herein shall preclude the City from enforcing any legal or equitable remedy against the applicant for recovery of such additional costs. Sec. 98.12 Events with Alcohol Any event providing for alcohol sales or consumption shall have a valid permit or license to sell or serve alcoholic beverages issued by the Texas Alcoholic Beverage Commission and shall follow all TABC rules and regulations associated with the permit. Sec. 98.13 Contract Applicant, in tending its application and receiving a permit, agrees and contracts with the City that it will comply with all of the terms of the permit for the purpose of maintaining and assuring the health, safety and welfare of the residents of the City of Canyon. Sec. 98.14 Conditions of Permit In addition to other requirements set forth herein, the applicant shall furnish suitable evidence of his intention and ability to comply with all conditions included in event application and Ordinance Number 1021. Sec. 98.15 Insurance No event permit shall be issued for a special event, parade, or race, until the applicant has filed a certificate of insurance, indicating that the required insurance to repair or replace any damage to publicly owned property within or adjacent to the event. Insurance policy shall be in force and effect during the period of time of the event and lists the City as an Additional Insured. Such insurance policy must be in the face amount of not less than ten thousand dollars ($10,000.00), and issued by a company licensed to issue such policy in Texas. This provision may be satisfied by either a special policy issued solely for the event or, by a standing liability policy maintained by the applicant year round, so long as it meets the requirements of this subsection. Applicants have the right to show cause when the insurance requirement should be reduced or waived, and to attach such request with the submitted permit application. The City Manager will review requests and may increase, lower, or drop the insurance requirement based upon review of the event application. An applicant may be required to furnish additional liability insurance based upon the type of event, equipment, machinery, location, alcohol related exposures, number of people involved, 6 and other pertinent factors or risks associated with the event. Final determination of the amount of additional insurance necessary will be made by the City Manager. Sec. 98.16 Event Parking Applicant shall submit evidence that sufficient parking will be available to accommodate the projected number of event participants. The number of spaces deemed sufficient, as determined by the Chief of Police, will be determined by the nature of the event, number and age of people attending, and event staff during peak times. When adequate parking is not available at or immediately adjacent to the site, off-site parking with attendee transportation plans may be submitted. The City Commission has the authority, as addressed in Ordinance 892, to prohibit parking along permitted parade routes, and may do so when reasonably necessary, as determined by the Chief of Police. Sec. 98.17 Amusement Rides Rides and/or attractions with special events shall conform to all associated local, State, and Federal statutory rules and regulations. Sec. 98.18 Hours of Operation An event may be conducted only between the hours of 7:00 a.m. and 10:00 p.m. daily. The police department shall be responsible for enforcing this provision. The City Manager may waive the time limitations on certain special events when good cause is demonstrated by the applicant and the request is made prior to the awarding of the event permit. Sec. 98.19 Tents and Temporary Structures Any permitted event which includes the use of a stage, seating, tent, canopy, or other temporary structure shall meet the requirements of the City’s Fire Code and Building Code except that a separate permit is not required with a permitted event. Fire lanes for emergency equipment must be provided and the site prepared in a manner so as not to be a fire hazard as determined by the Fire Chief. Staking tents on City property is not permitted without prior approval. Sec. 98.20 Food and Beverage Service Where food or beverage service is provided or sold, said operators shall be in compliance with all provisions of the food and beverage establishment ordinances of the City, as well as all other applicable state and local laws. Sec. 98.21 Duration of Permit No event shall be operated under a permit authorized herein for more than three calendar days or forty-five (45) hours during a calendar year. City sponsored events are exempt from length of permit restrictions. Another permit shall not be granted to the same permitee for the same 7 location until at least 90 days have elapsed from the expiration of the previous permit. The City Manager may waive the time limits on certain events when good cause is demonstrated. Sec. 98.22 City Inspection Policy It is the policy of the City that immediately upon arriving at the premises to be inspected, the City official, will ordinarily identify himself to an event employee/worker/volunteer. If there is no employee/worker/volunteer at the scene, the City Official may enter any area that is open to the public at that time to perform an inspection. SECTION 3: Severability, if any provision, section, subsection, sentence, clause, or the application of the 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 contained herein shall become inoperative or fail by any reasons of unconstitutionality of any other portion or provision. SECTION 4: Repealer. All ordinances and parts of ordinances in conflict with this ordinance are hereby repealed to the extent of conflict with this ordinance. SECTION 5: Penalty. It is an offense to violate any part of this ordinance, punishable upon conviction in accordance with Section 150.99 of the City of Canyon Code of Ordnances. SECTION 6: Publishing and Effective Date. This ordinance shall be published according to law and will become effective April 8, 2015. INTRODUCED AND PASSED at the regular meeting of the City Commission on the 23rd day of March, 2015. Quinn Alexander, Mayor ATTEST: Gretchen Mercer, City Clerk 8  AGENDA To: Honorable Mayor and Commissioners Randy Criswell, City Manager From: Evelyn Ecker, Director of Business & Community Development Date: March 17, 2015 Re: Consider and Take Appropriate Action on Adoption of Resolution No. 05-2015 with regards to Chapter 380 Grants/Agreements of the Texas Local Government Code, Chapter 380 authorizing Texas municipalities, both home- rule and general law to provide assistance for economic development. The frequent use of 380 Development Agreements for economic development in Texas is increasing. An agreement such as the 380 allows for a contractual agreement between a municipality and the owner of real property relating to development or redevelopment of that property. The eligible scope of a project could be “land development” (planning, platting, zoning, engineering, and infrastructure), “vertical” improvements (buildings and other structures for human occupancy), or both. Vertical improvements could include not only new construction but also renovation, remodeling or adaptive reuse of existing improvements. The agreements are for use within the city, the extraterritorial jurisdiction (“ETJ”) of the city, or an area annexed by the city for limited purposes. The benefits of a city having the option for the use of a development agreement (380) include the following:  Increased tax base – property and sales tax  Job creation and/or diversification of job base  Community amenities – entertainment, shopping, work force housing  Public Infrastructure – paid by the developer, or a public/private partnership  Higher quality development  Gives the CEDC another “tool’ to entice new businesses  Help stop the leakage of dollars locally by offering more choices In researching other cities that offer the 380 Agreements, it is used frequently on a case by case basis. In other words there are not any 380 Agreements that are the same. It would be tailored to projected sales and the sales tax revenue for Canyon that would come from the project and would include one or more retail businesses. The CEDC recently entered into a contract with the Retail Coach. They will update Canyon’s retail area and leakage analysis. They also have an excellent relationship with the national retail industry which allows them to have the data to help with projected sales for a particular project. This would help in the negotiation of the development agreement. It is staff’s recommendation to adopt Resolution No. 05-2015 with regards to Chapter 380 Agreements as an incentive to be used for economic development. City of Canyon  RESOLUTION NO. 05-2015 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS, ESTABLISHING AND PROVIDING FOR THE ADMINISTRATION OF ECONOMIC DEVELOPMENT PROGRAMS PURSUANT TO CHAPTER 380, TEXAS LOCAL GOVERNMENT CODE. WHEREAS, The CITY OF CANYON by and through the City Commission, intends to implement the provisions of Chapter 380, TEXAS LOCAL GOVERNMENT CODE for the purposes of promoting state and local economic development and to stimulate business and commercial activity in the City; and WHEREAS, Consistent with the provisions of '380.001, TEX. LOC. GOVT. CODE, the City will consider, on a case by case basis, giving economic incentives to business applicants based upon economic impact of the business applicant and subject to such terms and agreements negotiated and reduced to writing by the City or its designee and the business applicant; and WHEREAS, The City shall be under no obligation to extend or provide economic incentives to any business applicant, the decision to extend or provide economic incentives being within the sole discretion of the City Commission of the CITY OF CANYON to be determined on the basis of the merit of each applicant and its proposal; and WHEREAS, In the event the City Commission should elect to extend incentives to a business applicant, the terms and conditions thereof shall be reduced to writing in the form of a contract to be signed by an authorized agent of the City and the duly authorized officer of the business applicant. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS: SECTION 1: Program Requirements. A. Incentives may be granted for new facilities, expansion or modernization of existing facilities that add new taxable values to the ad valorem tax rolls, and to businesses renovating or occupying existing facilities within the city limits of Canyon, the extraterritorial jurisdiction of the City or an area annexed by the City for a limited purpose. To be considered for incentives as a Chapter 380 Economic Development Program, a project must at least meet the following minimum requirements below. B. Incentives established under this Program shall be provided only to the extent that the revenue realized by the City and attributable to a project exceeds a minimum amount established by the Agreement. The public benefit or amount of revenue realized by the City and attributable to the project must be commensurate with value of any incentives granted under this Program. Page 1 1. New Capital Investment Incentive: A project may be considered if it will: a. result in a minimum increased taxable value in Real and Business Personal Property for the City of $1,000,000 for a new business relocating to Canyon; or b. result in a minimum increased taxable value for the City of $500,000 of Real and Business Personal Property for an existing business established and operating within the city limits. 2. Renovation and Improvement of Existing Facilities Incentive: A project may qualify by demonstrating that it will: a. be a business undertaking a new lease of a minimum of 25,000 square feet of existing single-tenant space from an unrelated third party; and b. provide justification for incentives based upon • the type and number of jobs to be created or retained; • additional revenues created for the City from sales tax and tax on Business Personal Property and inventory; • the market conditions and growth potential for the business activity; or • any combination of the above. 3. New Retail: A retail business project may be considered under the Program if: a. the type of business is a retail business; and b. it will result in new Real Property and Business Personal Property, excluding inventory, of at least $1 million. 4. Other Projects: Any other project may be considered if it is specifically determined by the Canyon Economic Development Corporation and City Commission to bring extraordinary benefit to the City consistent with this policy. SECTION 2: Types of Economic Incentives A. Grant incentives offered under these Policies and Procedures may be utilized for: a. land and/or building acquisition costs; b. building improvements or renovation; c. extension of public roads; d. drainage improvements; e. any other purpose approved by City Commission; or f. sales tax rebate. Page 2 B. Depending upon the number of employees, wage levels, capital improvements, inventory, and type of business, other types of incentives allowed by Chapter 380, Texas Local Government Code, as amended from time to time, may be considered. Denial of Incentives: 1. All eligible applications for incentives shall be considered on a case-by-case basis as set forth herein, and the decision to approve or deny any incentive shall be made at the discretion of the City Commission. 2. A project shall not be eligible for incentives if a building permit has been requested for the project prior to making application in accordance with this program. Application Process: A. Required Information: In order for the City to evaluate a request for economic incentive and to determine the level at which an applicant qualifies for incentives, the applicant shall complete a Project Impact Worksheet which will be used to perform an economic impact analysis for the proposed project. Additional information may be included to further describe the project and may be required to provide a comprehensive evaluation. Businesses are encouraged to include any information regarding ancillary benefits associated with the project such as the ability of the project to attract other projects to the city. B. Application Submittal: Completed application should be submitted to the Director of Business and Community Development of the City of Canyon. C. Application Review: Upon receipt of completed application, the Board of Directors of the Canyon Economic Development Corporation will review the application and make a recommendation for approval/denial to City Commission. Approval of Incentives: Upon approval of any incentives authorized by City Commission, before the City of Canyon’s incentive grant will be made to the applicant, the applicant shall complete and fulfill: a. the basis upon which the incentives were considered, i.e. by creating new capital investment, renovating/improving an existing building, etc.; and b. shall comply with all other terms of the agreement. SECTION 3: The forms for Economic Development Agreements shall be developed by the City Attorney in conjunction with the Director of Business and Community Development. The Application for the economic incentive program and priority lists shall be developed by the Director of Business and Community Development in conjunction with the Board of the Canyon Economic Development Corporation. Page 3  DULY RESOLVED AND ADOPTED by the City Commission of the CITY OF CANYON, Texas on this the 23rd day of March, 2015. CITY OF CANYON, TEXAS _____________________________________ MAYOR, QUINN ALEXANDER ATTEST: _____________________________________ CITY SECRETARY, GRETCHEN MERCER Page 4  Chapter 380 of the Texas Loeal Government Code Texas City Attorneys Association Riley Fletcher Basic Municipal Law Seminar Lubbock, Texas February 24, 2006 Prepared and Presented by: Jeff Moore Brown & Hofmeister, L.L.P. 740 East Campbell Road, Suite 800 Richardson, Texas 75081 214) 747- 6100  Chapter 380 of the Texas Local Government Code Riley Fletcher Basic Municipal Law Seminar Lubbock, Texas February 24, 2006 What are chapter 380 grants? Chapter 380 is a reference to chapter 380 of the Texas Local Government Code. This chapter of the Texas Local Government Code authorizes Texas municipalities, both home- rule and general law municipalities to provide assistance for economic development. Texas cities may provide monies, loans, city personnel, and city services for promotion and encouragement of economic development. What type of assistance may a city provide under chapter 380 of the Local Government Code for economic development? Cities are authorized to " provide for the administration of one or more programs, including programs for making loans and grants of public money and providing personnel and services of the municipality." Nonetheless, the programs must serve the purpose of promoting state or local economic development by stimulating business and commercial activity within the city, within the extraterritorial jurisdiction ( or" ETJ") of the city, or an area annexed by the city for limited purposes.' What constitutes serving a public purpose? The Texas Constitutional requires all expenditures of municipal funds serve a " public 2 purpose." Accordingly, expenditures pursuant to chapter 380 programs must also serve a public purpose. Prior to 1987, Texas cities did not have constitutional authorization to provide economic assistance to businesses for economic development. In 1987, the Texas voters approved a constitutional amendment which provided that grants of monies for economic development may serve a " public purpose." Article III, section 52- a of the Texas Constitution authorizes " the making of loans and grants of public money . . . for the public purposes of development and diversification of the economy of the state, the elimination of unemployment or underemployment in the state . . . or the development or 3 expansion of transportation or commerce in the state." Further, any transaction providing public monies must contain sufficient controls " to insure that the public purpose [ is] carried out." 4 1 TEX Loc. Gov' T CODE ANN. § 380. 001( a) ( as amended by Texas House Bill 918, 79th Legislature, Regular Session( 2005)( effective date May 17, 2005)). 2 TEx. CONST. art. III,§ 52( a). See also, Texas Mun. League Intergovernmental Risk Pool v. Tex. Workers' Comp. Comm' n, 74 S. W.3d 377, 384 ( Tex. 2002) (" A political subdivision' s paying public money is not gratuitous, within meaning of state constitutional provision prohibiting gratuitous payments to individuals, associations, or corporations, if the political subdivision receives return consideration."). s TEX. CONST. art. III,§ 52- a. 4 Tex. Att' y Gen. Op. No. JM- 1255( 1990) at 8-9. i Page 2 of 7  Chapter 380 ofthe Texas Local Government Code Riley Fletcher Basic Municipal Law Seminar Lubbock, Texas February 24, 2006 Is there a durational limitation on economic assistance provided under chapter 380 of the Texas Local Government Code? Unlike tax abatements which are limited to ten ( 10) years, 5 chapter 380 of the Local Government Code does not contain a durational limitation. Consequently, some Texas cities have entered into 380 agreements which extend beyond ten ( 10) years. Whether your particular city has a durational limitation may be controlled by a home-rule city charter or other local provision. Can you abate delinquent taxes under chapter 380 of the Local Government Code? Article III, section 55 of the Texas Constitution provides that the legislature " shall have no power to release or extinguish, or to authorize the releasing or extinguishing, in whole or in part, the indebtedness, liability or obligation of any corporation or individual, to this State or to any country or defined subdivision thereof." Consequently, in a Texas Attorney General opinion, the Attorney General concluded " section 380. 001( a) of the Local Government Code does not authorize a municipality, as part of an economic 6 development program, to agree to abate a taxpayer' s delinquent taxes." Can a City provide a municipal sales tax rebate as a form of chapter 380 grant? Many cities may condition the grant or loan of public monies based upon estimated sales tax revenue generated by the business prospect. In a recent Texas Attorney General opinion, the Attorney General considered whether recent legislative changes prevented Texas cities from providing chapter 380 grants in the form of a sales tax rebate! The Attorney General concluded the " Local Government Code authorizes municipalities to refund or rebate municipal sales taxes and otherwise expend public funds for certain 8 economic development purposes." Further, the recent legislative change " does not invalidate existing tax rebate contracts, nor does it prohibit municipalities from executing new ones." 9 5 TEX. TAX CODE ANN. § 312. 204( a)( Vernon Supp. 2004-05). 6 Tex. Att' y Gen. Op. No. LO-95- 090( 1995). Tex. Att' y Gen. Op. No. GA-0071 ( 2003). e Tex. Att' y Gen. Op. No. GA-0137( 2004) at 1. 9 Id. at 4. Page 3 of 7  Chapter 380 ofthe Texas Local Government Code Riley Fletcher Basic Municipal Law Seminar Lubbock, Texas February 24, 2006 Can City provide section 4A or 4B economic a development corporations city funds for economic development? A home-rule municipality may provide public money to a section 4A or section 4B corporation. 10 Nonetheless, the grant of public monies must be pursuant to a contract. Further, the development corporation must use the grant money for the" development and diversification of the economy of the state, elimination of unemployment or underemployment in the state, and development and expansion of commerce in the state" 11 10 TEX Loc. Gov' TCODE ANN. § 380. 002( b)., 1' Id. Page 4 of 7  Chapter 380 of the Texas Local Government Code Riley Fletcher Basic Municipal Law Seminar Lubbock, Texas February 24, 2006 Chapter 380 of the Texas Local Government Code 79th Section 380. 001( a) as by Texas House Bill 918, amended Legislature, Regular Session ( 2005) ( effective date May 17, 2005) 380. 001. ECONOMIC DEVELOPMENT PROGRAMS. a) The governing body of a municipality may establish and provide for the administration of one or more programs, including programs for making loans and grants of public money and providing personnel and services of the municipality, to promote state or local economic development and to stimulate business and commercial activity in the municipality. For purposes of this subsection, a municipality includes an area that: 1) has been annexed by the municipality for limited purposes; or 2) is in the extraterritorial jurisdiction of the municipality. b) The governing body may: 1) administer a program by the use of municipal personnel; 2) contract with the federal government, the state, a political subdivision of the state, a nonprofit organization, or any other entity for the administration of a program; and 3) accept contributions, gifts, or other resources to develop and administer a program. c) Any city along the TexasMexico border with a population of more than 500, 000 may establish not-for-profit corporations and cooperative associations for the purpose of creating and developing an intermodal transportation hub to stimulate economic development. Such intermodal hub may also function as an international intermodal transportation center and may be collocated with or near local, state, or federal facilities and facilities of Mexico in order to fulfill its purpose. Added by Acts 1989, 71st Leg., ch. 555, § 1, eff. June 14, 1989. Amended by Acts 1999, 76th Leg., ch. 593, § 1, eff. Sept. 1, 1999. Page 5 of 7  Chapter 380 of the Texas Local Government Code Riley Fletcher Basic Municipal Law Seminar Lubbock, Texas February 24, 2006 380. 002. ECONOMIC DEVELOPMENT GRANTS BY CERTAIN MUNICIPALITIES. a) A home-rule municipality with a population of more than 100, 000 may create programs for the grant of public money to any organization exempt from taxation under Section 501( a) of the Internal Revenue Code of 1986 as an organization described in Section 501( c)( 3) of that code for the public purposes of development and diversification of the economy of the state, elimination of unemployment or underemployment in the state, and development or expansion of commerce in the state. The grants must be in furtherance of those public purposes and shall be used by the recipient as determined by the recipient's governing board for programs found by the municipality to be in furtherance of this section and under conditions prescribed by the municipality. b) A home-rule municipality may, under a contract with a development corporation created by the municipality under the Development Corporation Act of 1979 ( Article 5190. 6, Vernon' s Texas Civil Statutes), grant public money to the corporation. The development corporation shall use the grant money for the development and diversification of the economy of the state, elimination of unemployment or underemployment in the state, and development and expansion of commerce in the state. c) The funds granted by the municipality under this section shall be derived from any source lawfully available to the municipality under its charter or other law, other than from the proceeds of bonds or other obligations of the municipality payable from ad valorem taxes. Added by Acts 1991, 72nd Leg., ch. 16, § 13. 06( a), Aug. 26, 1991. Amended by eff. Acts 1991, 72nd Leg., 1st C. S., ch. 4, § 25. 02, eff. Aug. 22, 1991; Acts 2001, 77th Leg., ch. 56, § 1, eff. Sept. 1, 2001. 380. 003. APPLICATION FOR MATCHING FUNDS FROM FEDERAL GOVERNMENT. A municipality may, as an agency of the state, provide matching funds for a federal program that requires local matching funds from a state agency to the extent state agencies that are eligible decline to participate or do not fully participate in the program. Added by Acts 1995, 74th Leg., ch. 1051, § 1, eff. June 17, 1995. Page 6 of 7  Chapter 380 ofthe Texas Local Government Code Riley Fletcher Basic Municipal Law Seminar Lubbock, Texas February 24, 2006 Article III, Section 52- a of the Texas Constitution ( as amended November 8, 2005) Sec. 52- a. Notwithstanding any other provision of this constitution, the legislature may provide for the creation of programs and the making of loans and grants of public money, other than money otherwise dedicated by this constitution to use for a different purpose, for the public purposes of development and diversification of the economy of the state, the elimination of unemployment or underemployment in the state, the stimulation of agricultural innovation, the fostering of the growth of enterprises based on agriculture, or the development or expansion of transportation or commerce in the state. Any bonds or other obligations of a county, municipality, or other political subdivision of the state that are issued for the purpose of making loans or grants in connection with a program authorized by the legislature under this section and that are payable from ad valorem taxes must be approved by a vote of the majority of the registered voters of the county, municipality, or political subdivision voting on the issue. A program created or a loan or grant made as provided by this section that is not secured by a pledge of ad valorem taxes or financed by the issuance of any bonds or other obligations payable from ad valorem taxes of the political subdivision does not constitute or create a debt for the purpose of any provision of this constitution. An enabling law enacted by the legislature in anticipation of the adoption of this amendment is not void because of its anticipatory character. Page 7 of 7  AGENDA To: Mayor and City Commission From: Chris Sharp, Assistant City Manager Date: March 17, 2015 Re: Consider and Take Appropriate Action on Ordinance No. 1022, Atmos Rate Review Mechanism Agreement The City Canyon, along with other similarly situated cities served by Atmos Energy Corp., is a member of the Steering Committee of Cities Served by Atmos West Texas. On December 1, 2014, Atmos West Texas filed with the City a Rate Review Mechanism filing (“RRM”) to reflect a system-wide cost of service increase in the amount of $11.8 million of which $5 million was attributed to the West Texas Cities Rate Division. The City worked with the WTX Cities to analyze the schedules and evidence offered by Atmos West Texas to support its request to increase rates. The settlement is the result of negotiations between the WTX Cities Executive Committee and the Company to resolve issues raised by the WTX Cites during the review and evaluation of Atmos West Texas’ filing. The settlement will increase the Company’s revenues by $4.3 million for the West Texas Cities Rate Division, effective for bills rendered on or after March 15, 2015. The monthly customer charge will not change, but will remain at $15.50. The consumption charge will change from $0.1016 per Ccf to $0.14241 per Ccf. The monthly bill impact for the average residential customer will be an increase of $2.02 (about a 4.5% increase in the total bill). Recommendations: Staff recommends approval of Ordinance No. 1022 allowing for an increase in the Rate Review Mechanism filed by Atmos Energy. City of Canyon  ORDINANCE NO. 1022 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS, APPROVING A NEGOTIATED RESOLUTION BETWEEN THE ATMOS WEST TEXAS CITIES STEERING COMMITTEE (“WTX CITIES”) AND ATMOS ENERGY CORP., WEST TEXAS DIVISION REGARDING THE COMPANY’S 2014 RATE REVIEW MECHANISM FILING; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED SETTLEMENT; FINDING THE RATES TO BE SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE AND IN THE PUBLIC INTEREST; REQUIRING THE COMPANY TO REIMBURSE CITIES’ REASONABLE RATEMAKING EXPENSES; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; ADOPTING A SAVINGS CLAUSE; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND THE WTX CITIES’ LEGAL COUNSEL. WHEREAS, the City of Canyon, Texas (“City”) is a gas utility customer of Atmos Energy Corp., West Texas Division (“Atmos West Texas” or “Company”), and a regulatory authority with an interest in the rates and charges of Atmos West Texas; and WHEREAS, the City is a member of the West Texas Cities Steering Committee (“WTX Cities”), a coalition of similarly-situated cities served by Atmos West Texas that have joined together to facilitate the review of and response to natural gas issues affecting rates charged in the Atmos West Texas service area; and WHEREAS, pursuant to the terms of the agreement settling the Company’s 2013 Statement of Intent to increase rates, Cities and the Company worked collaboratively to develop a new Rate Review Mechanism (“RRM”) tariff that allows for an expedited rate review process by WTX Cities as a substitute to the current Gas Reliability Infrastructure Program (“GRIP”) process instituted by the Legislature, and that will establish rates for the WTX Cities based on the system-wide cost of 4688343.1 1 serving the West Texas Division, which includes the Amarillo, Lubbock, and WTX Cities rate jurisdictions; and WHEREAS, the City passed an ordinance renewing the RRM tariff process for the City to govern rate setting in 2015 and beyond; and WHEREAS, the RRM tariff contemplates reimbursement of Cities’ reasonable expenses associated with RRM applications; and WHEREAS, on or about December 1, 2014, the Company filed with the City its first annual RRM filing under the renewed RRM tariff, requesting to increase natural gas base rates system- wide by $11.8 million, and for WTX Cities by $5 million; and WHEREAS, WTX Cities coordinated its review of Atmos West Texas’ RRM filing through its Executive Committee, assisted by WTX Cities’ attorneys and consultants, to resolve issues identified in the Company’s RRM filing; and WHEREAS, the Executive Committee, as well as WTX Cities’ counsel and consultants, recommend that WTX Cities approve the attached rate tariffs (“Attachment A” to this Ordinance), which will increase the Company’s revenues by $ 4.3 million; and WHEREAS, the attached tariffs implementing new rates are consistent with the negotiated resolution reached by WTX Cities and are just, reasonable, and in the public interest; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS: Section 1. That the findings set forth in this Ordinance are hereby in all things approved. Section 2. That the City Commission finds the existing rates for natural gas service provided by Atmos West Texas are unreasonable and new tariffs that are attached hereto and incorporated herein as Attachment A, are just and reasonable and are hereby adopted. 4688343.1 2  Section 3. That Atmos West Texas shall reimburse the reasonable ratemaking expenses of the WTX Cities in processing the Company’s RRM application. Section 4. That to the extent any resolution or ordinance previously adopted by the Commission is inconsistent with this Ordinance, it is hereby repealed. Section 5. 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 6. 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 7. 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 after March 15, 2015. Section 8. That a copy of this Ordinance shall be sent to Atmos West Texas, care of Becky Palmer, Vice President of Rates and Regulatory Affairs West Texas Division, Atmos Energy Corporation, P.O. Box 1121, Lubbock, Texas 79408-1121, and to Geoffrey Gay, General Counsel to WTX Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701. PASSED AND APPROVED this 23rd day of March, 2015. _________________________________ Quinn Alexander, Mayor ATTEST: APPROVED AS TO FORM: __________________________________ __________________________________ Gretchen Mercer, City Secretary Chuck Hester, City Attorney 4688343.1 3