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 5th day of March 2018, 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 February 5, 2018. 5. Approval of the Minutes of the Special Meeting of February 22, 2018. 6. Public Comment – Comments from Interested Citizens. 7. Conduct Second Public Hearing and Consider and Take Appropriate Action on Resolution No. 04-2018 With Regards to a Request From Rocar Inc., dba U.S. Cleaners, a New Business to be Located at 2005 N. 2nd Avenue, suite A. (The Depot) Canyon, Texas. The Funding is Based on New Business Development. 8. Hold Public Hearing and Consider and Take Appropriate Action on a Specific Use Permit Request by 806 Vapes to Operate an Electronic Cigarette Store at 306 23rd St. 9. Report From Fire Chief Mike Webb on Wildfire Potential and Action Plan. 10. Consider and Take Appropriate Action on Recommendations from the Board of City Development (BCD) for 2018 Budget. 11. Consider and Take Appropriate Action on Ordinance No. 1076, An Ordinance Adopting a New Rate Review Mechanism (RRM) Tariff to Govern Future Annual Rate Filings by Atmos West Texas. 12. Consider and Take Appropriate Action on Resolution No. 08-2018, a Resolution of the City Commission of the City of Canyon, Randall County, Texas, Authorizing the Submission and Acceptance of a Grant Application to the Office of the Governor for the DJ Edward Byrne Memorial Justice Assistance Grant Program for P25 Radio Trunking System for the City of Canyon Police Department; and Authorizing the Chief of Police to Represent the City In All Matters Pertaining to This Application. 13. Drought Contingency Plan Implementation – Information Only. 14. Discussion of Need and Protocol for City Commission Work Sessions. 15. Executive Session Pursuant to §551.072 Real Property, and §551.071 Consultation with Attorney. 16. Consider and Take Appropriate Action on Items Discussed in Executive Session. 17. Adjourn. 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 2nd day of March 2018. Gretchen Mercer, City Clerk City of Canyon City Commission Meeting February 5, 2018 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 Gary Hinders presided over the meeting with the following Commissioners in attendance, Cordell Jones, Roger Remlinger and Paul R. Lyons. Mayor Pro-Tem Justin Richardson 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, Chief of Police Dale Davis, City Engineer Dwight Brandt, and City Attorney Chuck Hester. Item 1. Call to Order. Mayor Hinders called the meeting to order at 5:33 p.m. Item 2. Invocation. Commissioner Jones gave the invocation. Item 3. Pledge of Allegiance. The Pledge of Allegiance was led by Commissioner Remlinger. Item 4. Approval of Minutes of the Meeting January 22, 2018. Mayor Hinders pointed out that the final motion carried unanimously was not stated on Item 15 of the minutes. Commissioner Remlinger moved, duly seconded by Commissioner Jones, to approve the minutes of January 22, 2018 with the correction on Item 15 as stated. Motion carried unanimously. Item 5. Public Comment – Comments From Interested Citizens. No comments were made. Item 6. Update from City Manager on Following Items: (This is a report only, questions are to pertain to subject matter only. No other subject matter can legally be discussed in this update), Verbal report only. • North Sewer Expansion Project • East Water Tower Coating Project • Canyon East Phase 6 • Madison Park Phase 2 • Wood Waste Site Evaluation Item 7. Consider and Take Appropriate Action on Bids Received for Sealcoating – 2018 Project. City Commission Meeting February 5, 2018 Page 2 of 3 City Engineer Dwight Brandt presented bids opened at City Hall on Thursday, January 25, 2018. Mr. Brandt stated the area to be sealcoated for 2018 was the remainder of Canyon East that wasn’t sealcoated in 2017 and Hunsley Hills north of the creek. Mr. Brandt stated 3 bids were received with the low bid submitted by Lipham Asphalt and Paving for $346,462.20. BID TAB – SEALCOATING 2018 TOTAL BID DAYS TO COMPLETE Lipham Asphalt and Paving $346,462.20 45 days Freeman Paving $363,226.50 45 days G&G Operators $386,696.52 90 days After discussion, Commissioner Remlinger moved, duly seconded by Commissioner Jones to award the Sealcoat Bid to Lipham Asphalt and Paving with the low bid of $346,462.20 as recommended by the City Engineer and Staff. Motion carried unanimously. Item 8. Consider and Take Appropriate Action on Bids Received for Water System Improvements – 14” Transmission Line from Well No. 3 to Brown Road – EDA Project #08-01-05039. City Engineer Dwight Brandt presented bids opened at City Hall on Thursday, January 25, 2018. Mr. Brandt stated the bids were to begin a project to upgrade / upsize the transmission line needed for the four wells at the new Brown Road wellfield. Mr. Brandt stated funds remaining from the EDA Grant funds in the amount of $150,000 would be used with the City’s match of 50% being provided by the water bond money. Mr. Brandt stated this would not use all of the grant funds and ways to expand the grant area enough to use the remaining grant funds have been considered, but he didn’t believe it would be likely to find a project that fit, so some of the grant funding would probably have to be given back. Mr. Brandt stated 5 bids were received with Scott Wampler submitting the low bid of $99,437.00. Mr. Brandt stated it was he and staff’s recommendation to award the bid to Scott Wampler. Commissioners asked if this project included boring under Brown Road. Mr. Brandt stated it did, but the project limits don’t go further west than Brown Road. BID TAB – Water System Improvements – 14” Transmission Line From Water Well #3 to Brown Road TOTAL BID AMOUNT DAYS TO COMPLETE Scott Wampler $ 99,437.00 90 AUC $127,590.00 90 West Texas Utility $147,054.00 150 MH Civil Constructors $165,000.00 90 LA Fuller & Sons $189,114.00 75 After discussion, Commissioner Jones moved, duly seconded by Commissioner Remlinger to award the bid to the low bidder, Scott Wampler, with a bid of $99,437.00 as recommended by the City Engineer and staff. Motion carried unanimously. City Commission Meeting February 5, 2018 Page 3 of 3 Item 9. Consider and Take Appropriate Action on Recommendation to Terminate Contract for Collection Services Regarding Court Fees and Fines. Mayor Hinders stated this item would be put off so that more information could be gathered. Item 10. Consider and Take Appropriate Action on Annual Police Report and 2017 Racial Profiling Report From Chief of Police Dale Davis. Chief of Police Dale Davis presented the Annual Police Report and 2017 Racial Profiling Report. After discussion Commissioner Jones moved, duly seconded by Commissioner Remlinger to approve the report as presented. Motion carried unanimously. Commissioner Jones expressed appreciation for the Canyon Police Department and commended them on doing a good job, with the rest of the Commission expressing the same. Item 11. Executive Session Pursuant to §551.072 Deliberation of Real Property, and §551.071 Consultation with Attorney. Mayor Hinders indicated the Commission would adjourn into Executive Session at 6:32 p.m. Item 12. Consider and Take Appropriate Action on Items Discussed in Executive Session. Upon returning from Executive Session at 6:59 pm, no action was taken. Item 13. Consider Changing Date for Strategic Planning Session Scheduled for Friday, February 2, 2018. City Manager Randy Criswell stated Thursday, February 22, 2018 seemed to be a better date for everyone on the City Commission to attend the Strategic Planning Session. All agreed to change the meeting date to February 22, 2018. Item 14. Adjourn. There being no further business, Commissioner Remlinger moved this meeting be adjourned at 7:04 pm. ______________________________ Gary Hinders, Mayor ATTEST: ________________________________ Gretchen Mercer, City Secretary City Commission Special Meeting February 22, 2018 The City Commission of the City of Canyon met in special session at 10:30 a.m. in the Mack Dick Pavilion in Palo Duro Canyon. Mayor Gary Hinders presided over the meeting with the following Commissioners in attendance, Mayor Pro-Tem Justin Richardson, Cordell Jones, Roger Remlinger and Paul R. Lyons. Also present was City Manager Randy Criswell and City Attorney Chuck Hester. At 1 pm, the meeting was joined by the following City Staff: Assistant City Manager Chris Sharp, Police Captain Ray Resendez, Public Works Director Dan Reese, Code Enforcement Director Danny Cornelius, Parks Director Brian Noel, BCD Director Evelyn Ecker, and Safety Director Tony Lawson. Item 1. Call to Order. Mayor Hinders called the meeting to order at 10:30 a.m. Item 2. Team Building, Devotional and Lunch. The Commissioners were led in a short devotional and prayer period by Pastor Rick Enns of the First Methodist Church and Pastor David Gadberry of the Summit Church. The Commissioners then spent until about 12:30 in casual interaction, and continued through lunch until about 1 pm. No City business was discussed. A short recess occurred between 1 pm and 1:15 pm. Item 3. 1:00 PM – Strategic Planning Session. Mayor Hinders called the meeting to order at 1:15 p.m. Each Commissioner was given the opportunity to express what he felt was important to him as a City Commissioner and as a citizen of Canyon, and to express what he felt could be improved or changed. The following is a summary in bullet format of the major items that were listed: • Address growth and maintain growth, both residential and retail/commercial. • Event/convention/conference center of some kind should be explored. • Maintain and strengthen ties with WTAMU, work with them, assist the University in every way possible. • Enhance potential for Canyon to be a Sports Destination • Create and develop more media awareness of Canyon and events in Canyon. • Take care of our employees. Show appreciation. Provide good salaries, good benefits, and let them know they are the backbone of the City. • Brick Streets. Must develop a plan of action • Communication. Projects, staff, each other. Possible work sessions prior to Commission meetings. • Water Supply • Parks • Youth/young people/young families Other things discussed: • Trust our processes, our staff, and our Boards/Commissions. City Commission Meeting February 22, 2018 Page 2 of 2 • Make Canyon more noticed by the media in every way possible; highlight our events and what makes Canyon special • Possible full-time accountant on staff • Tax inequity with Randall County vs. services provided. At that point, City Manager Criswell was asked if he had anything to add. Mr. Criswell stated he felt there were some things that needed to remain as a future focus of some kind. Those items were: • Yard Parking Ordinance • AMR System • City Hall/Civic Complex expansion • Russell Long Blvd partnership with TxDOT and WTAMU • Traffic Study for the downtown Square • Consideration of amending Ordinance prohibiting alcohol in City facilities and City parks Item 4. Adjournment. There being no further business, Mayor Hinders thanked everyone for their time and efforts, and Mayor Pro-Tem Richardson moved this meeting be adjourned at 4:10 pm. ______________________________ Gary Hinders, Mayor ATTEST: ________________________________ Gretchen Mercer, City Secretary REGARDING ITEM 7 AGENDA To: Randy Criswell, City Manager From: Evelyn Ecker, Executive Director Canyon Economic Development Corp. Date: March 1, 2018 Re: Conduct Second Public Hearing and Consider and Take Appropriate Action on Resolution No. 04-2018 With Regards to a Request From Rocar Inc., dba U.S. Cleaners, a New Business to be located at 2005 N. 2nd Avenue, Suite A., (The Depot) Canyon, Texas. The Funding is Based on New Business Development. U.S. Cleaners has been a family owned and operated business since 1995. The business started with one location and has grown to 5. Last year they built a state of the art production facility with four satellite locations across Amarillo. They believe the timing is right to expand into the Canyon market. U.S Cleaners’ goal is to bring quality dry cleaning services, quick turnaround times, 24 hour drop off, and the convenience of a drive-through. Also the Amarillo locations have a significant customer base from Canyon and they would like to be more convenient for that those consumers. The CEDC approved funding Lease Subsidy for 3 years. The funding schedule would be 50% the first year, 30% second year and 20% the last year. Funding would not exceed $18,666. U.S. Cleaners has signed a three (3) year lease on the space. Please find attached the Resolution and a draft of the Funding Agreement. This is the second and final reading of Resolution No. 04-2018. It is the recommendation of staff to approve Resolution No.04-2018.  CANYON ECONOMIC DEVELOPMENT CORPORATION PROJECT FUNDING AGREEMENT Rocar Inc. dba U.S. Cleaners This agreement is made by and between the Canyon Economic Development Corporation (CEDC), a Texas non-profit corporation duly organized and existing pursuant to the TEXAS DEVELOPMENT CORPORATION ACT Rocar Inc., dba U.S. Cleaners duly organized and an existing business under the laws of the State of Texas and qualified to do business in Texas. 1. The purpose of this agreement is to facilitate the proper use of funds held and administered by the CEDC, a tax supported non-profit corporation whose primary income is from sales tax collected within the City of Canyon and dedicated exclusively to economic development. The sales tax supporting CEDC is authorized as a local option under TEX. REV. CIV. STAT. ART. 5190.6 §4B, the primary purpose of which is the developing, stabilizing, diversifying, and expanding the economy through the retention, recruitment, expansion, and employment opportunities of the citizens of Canyon and the surrounding area and to enhance the quality of life of the citizens of Canyon and the surrounding area. 2. The project and performance requirements to be implemented by means of this agreement are described as follows: a. Second Party shall maintain the business located at 2005 N. 2nd Avenue, Canyon, Texas. b. Second Party will maintain space as retail for a minimum of 3 years. The definition of retail is defined as consistent business hours Monday – Saturday. 3. The CEDC will provide the following funding and financial incentives for the project: a. An amount, not to exceed $18,666.00 as follows: (1.) The payment of $9,228.00 ($769.00 month) for Lease Subsidy for one year only (year 1). Lease will be reimbursed and paid in arrears. Start day will be the first full month store is open for business. A copy of the lease will be provided. (2.) The payment of $5,626.80 ($468.90 month) for Lease Subsidy for the 2nd year. (3) The payment of $3,811.20 ($317.60 monthly) for Lease Subsidy for the 3rd year. Page 1 of 7  (4) Sales tax collected and business financials will be validated annually from the Effective date of the Funding Agreement. b. All other terms and provisions of this agreement notwithstanding, the obligations of the parties hereto are expressly made contingent upon the following: i approval of the financial incentives by the CEDC Board; ii approval of the financial incentives by the Canyon City Commission; and, iii compliance with the requirements of the Texas Development Corporation Act of 1979, ART 5190.6 §4B (4B, a-1) TEX. REV. CIV. STAT. 4. The failure of Second Party to fully and timely comply with any performance requirement shall be an act of default by Second Party which shall entitle the CEDC to suspend further funding and, at its option, to terminate this agreement by written notice delivered pursuant to paragraph 9. 5. Second Party agrees to undertake the following actions in order to accomplish the project: a. Comply at all times with the requirements of paragraph 2 of this agreement during the term of this agreement. 6. Second Party makes the following covenants and warranties to the CEDC and agrees to timely and fully perform the following obligations and duties: a. Any false or substantially misleading statement contained herein or the failure of Second Party to comply and fully perform as required in this agreement shall be an act of default by Second Party. Failure to comply with any covenant or warranties shall constitute an act of default and entitle the CEDC to suspend further funding and at it’s option to terminate this agreement by written notice in accordance with paragraph 9 below. b. Second Party is authorized to do business in Texas, is in good standing in the State of Texas and shall remain in good standing in the State of Texas during the term of this agreement. c. No litigation or governmental proceeding is pending or to the knowledge of Second Party is contemplated or threatened against Second Party or affecting it’s operations or business that may result in any material or adverse change in Second Party’s business, properties, or operations. To Second Party’s knowledge, no additional consent, approval, or authorization of a governmental entity or other authority is required in connection with the execution and performance of this agreement or the transactions contemplated hereby. d. To Second Party’s knowledge no certificate or statement delivered by Second Party to CEDC in connection with this agreement or any transaction contemplated by this agreement contains any untrue statement or fails to state the facts necessary to keep the statements contained therein from being misleading or false. Page 2 of 7  e. There are no bankruptcy proceedings or other legal proceedings currently pending or contemplated affecting the Second Party. The Second Party has not been informed of any intent to initiate involuntary bankruptcy proceedings against Second Party. f. To it’s knowledge Second Party has acquired and maintained all necessary rights, licenses, permits, and authority to carry on it’s business in Texas and to perform the terms of this agreement and will continue to use it’s best efforts to maintain all necessary rights, licenses, and permits in current status and good standing. g. The funds provided by CEDC shall be utilized solely for the purpose of the project as stated in this agreement and within the scope of the project as stated in this agreement and for no other purpose. h. Second Party shall pay all taxes and assessments due and owing to all taxing authorities having jurisdiction over Second Party’s property and business operations. In addition, Second Party shall timely pay all employment, income, franchise, and other taxes due and owing by Second Party to all local, state, and federal entities. i. Second Party shall complete the project required by this agreement and shall provide the necessary staff and employees for the completion and performance of this agreement. j. Second Party shall timely and fully perform and comply with all terms and conditions of this agreement. k. Upon written request of CEDC Second Party shall notify CEDC in writing of substantial changes in the management of Second Party within seven (7) days. Substantial changes shall mean changes in executive officers, board members, or managers. l. The Second Party agrees that with regard to all programs and activities arising out of this agreement, the Second Party shall fully comply with all civil rights acts and specifically will not discriminate against any person upon the basis of race, color, national origin, gender, or by reason of being disabled. 7. The CEDC under the following circumstances and at the sole discretion of its board of directors may suspend the obligations under this agreement or may terminate this agreement without liability to the CEDC upon: a. The filing of bankruptcy proceedings or the appointment of a receiver of Second Party or any part of it’s assets or property and failure of such bankruptcy or receivership to be discharged within sixty (60) days of filing. b. The adjudication of Second Party as a bankrupt. Page 3 of 7  c. A change in ownership of Second Party which constitutes a material change in the nature of Second Party’s business and operations, unless Second Party has complied with paragraph 2 and 3(d) above. 8. Should Second Party fail to timely, fully, and completely comply with any one or more of the requirements, obligations, duties, terms, and conditions or warranties of this agreement such failure shall constitute an act of default by Second Party and, if not fully and completely cured within 60 days after written notice by CEDC to Second Party, the CEDC may terminate this agreement and pursue any legal remedies existing under the law; provided however, that Second Party’s liability under this agreement shall be limited to the immediate return by Second Party of all funds or other economic incentives provided by the CEDC and any consideration previously paid to Second Party by the CEDC. The rate of interest on all funds paid by the CEDC to Second Party subject to refund shall be 6% per annum. In the event CEDC should prevail in any litigation to recover funds pursuant to this paragraph, the CEDC shall, in addition to all other damages provided by this paragraph, be entitled to recover reasonable attorney’s fees and expenses of litigation. Provided, however, that if the default relates only to the number of employees to be maintained under Paragraph 2.c., the sole remedy of the First Party shall be to reduce the amount paid as set forth in Paragraph 3.d. of this agreement. 9. In the event of unforeseeable third party delays, in the performance of this agreement by Second Party, or force majeure, and upon a reasonable showing by Second Party that it has immediately and in good faith commenced and is diligently and continuously pursuing the correction, removal, or abatement of such delays by using its best efforts, CEDC may consent and excuse any such delay, which consent shall not be unreasonably conditioned or withheld. The failure by Second Party to continuously and diligently pursue compliance shall constitute an act of default. 10. Any delay by the CEDC in providing notice of default to Second Party, shall in no event be deemed or constitute a waiver of such default by CEDC or waiver of any of it’s rights and remedies available under this agreement or at law or in equity. 11. Any waiver provided by CEDC to Second Party of an act of default shall not be deemed to constitute a continuing waiver or a waiver of any other existing or future act of default by Second Party even if the act or default is of the same or a similar nature. 12. Second Party specifically agrees that CEDC shall only be liable to Second Party for the amount of money actually budgeted and committed to the project described in this agreement. CEDC shall not be liable or held responsible for any other direct or indirect costs, attorneys fees, court costs, actual or consequential damages, direct or indirect, for any act of default by CEDC under the terms of this agreement. It is further stipulated and agreed that CEDC shall only be required to pay the amount of the project cost out of its sales tax revenues held and administered pursuant to §4B of the Development Corporation Act for the fiscal year in which the funding under this agreement is due together with unencumbered funds then on hand and from no other source. It is specifically agreed however, that in the event actual total sales tax revenues collected by CEDC for any year during which this agreement is to be performed should be less Page 4 of 7 than the total amount of all grants to all contracting parties for that year, then in that event, CEDC shall fund projects in the order the grants were awarded after payment of CEDC’s usual administrative cost and expenses. All contracting parties shall receive only their share of the available sales tax revenue for that year, less CEDC’s customary and usual administrative costs and expenses and CEDC shall not be liable to any contracting party for any deficiency for that time or in the future. In the event of such revenue shortfall, CEDC will provide written notice to all contracting parties affected by the revenue shortfall along with such documentation as will allow the contracting party to ascertain their share of the funding to be provided. 13. This agreement incorporates the entire agreement of the parties hereto and supersedes any oral or written previous and contemporaneous agreements between the parties relating to the matters covered by this agreement. Except as otherwise provided herein, this agreement cannot be modified or amended without a written agreement of the parties. 14. No term or provision of this agreement or an act of the CEDC in the performance of this agreement shall be construed as making or constituting Second Party or its employees, or agents, partners of the CEDC or employees of the CEDC. This contract shall not benefit any third party not a direct party to this agreement. 15. The termination of this agreement as provided herein may be upon mutual agreement of the parties or pursuant to the provisions hereof relating to default. The termination of this agreement either by mutual agreement or by notice served by the CEDC shall extinguish all rights, duties, and obligations of the CEDC and Second Party except as provided herein. 16. This agreement may be executed in a number of identical counterparts each of which shall be deemed an original upon execution and shall constitute the same instrument. 17. This agreement is made pursuant to the laws of the State of Texas and shall be governed and interpreted under the laws of the State of Texas without regard to any conflict of laws provision. Venue in any litigation arising out of the execution or performance of this agreement shall be in the court of appropriate jurisdiction in Randall County, Texas and in no other Venue. Second Party, by signing this agreement, consents to and waives any objections to in personam jurisdiction in Randall County, Texas. 18. In the event one or more of the provisions contained in this agreement should, for any reason, be held invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of this agreement. This agreement shall be construed as if such invalid, illegal, or unenforceable provision had not been contained herein. 19. This agreement is subject to all legal requirements contained in the Municipal Charter of the City of Canyon and Code and Ordinances of the City of Canyon and all other applicable state and federal laws and regulations. Second Party agrees that, in compliance with this agreement, it will promptly comply with all applicable laws, regulations, orders, and rules of the state, city, and other governmental entities. Page 5 of 7  20. This agreement shall be binding upon the parties hereto, their successors, and (where permitted) assigns. This agreement may not be assigned by either party without the specific prior written consent of the other, which consent shall not be unreasonably withheld or conditioned. Provided however, that in the event Second Party transfers all or substantially all it’s assets to another entity or merges with another entity to the extent that the underlying purpose of this agreement cannot, in the sole discretion of the CEDC’s board of directors, be accomplished, the CEDC shall have the option to suspend it’s performance under this agreement or terminate this agreement. 21. Second Party represents that no member of the board of directors of the CEDC or member of the governing body of the City of Canyon or any officer or employee of the City of Canyon or CEDC will be compensated in any manner with respect to directly or indirectly bringing the parties together for the purpose of this agreement or participation in the negotiation or formation of this agreement. No finder’s fee or other origination fee of any type will be paid or will become payable to any officer or employee of the City of Canyon, member of the governing body of the City of Canyon, or the governing body of the CEDC with regard to the formation or performance of this agreement. 22. All notices from one party to the other party required or permitted by this agreement shall be delivered personally or sent by certified mail postage prepaid addressed to the party at the address shown on the signature page. All notices shall be deemed given on the date so delivered or deposited in the mail unless otherwise provided. Either party may change its address by sending written notice of such change to the other party in the manner provided by this agreement. 23. All representations, warranties, covenants, and agreements of the parties as well as all rights and benefits of the parties pertaining to the transaction contemplated by this agreement shall survive the original execution date of this agreement and shall constitute continuing obligations. Page 6 of 7 Effective Date: ______________________________ CANYON ECONOMIC DEVELOPMENT CORPORATION By: _________________________________ Don Lee, President 1604 4th Avenue, Suite 21, Canyon, Texas 79015 ROCAR Inc. By: _________________________________ Caron Turner Sansing, President 4303 Criss Street, Amarillo, Texas 79110 Page 7 of 7  RESOLUTION NO. 04-2018 RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING PROJECT FUNDING AGREEMENT BETWEEN ROCAR INC., AND CANYON ECONOMIC DEVELOPMENT CORPORATION REGARDING DIRECT FINANCIAL ASSISTANCE FOR A PROJECT LOCATED AT 2005 N. 2nd AVENUE, SUITE A, CANYON, TEXAS. THE FUNDING IS BASED ON NEW BUSINESS DEVELOPMENT. WHEREAS, on DECEMBER 14, 2017, the Canyon Economic Development Corporation (“CEDC”) conducted a public hearing regarding the use of sales and use tax revenues collected pursuant to the Development Corporation Act of 1979 (Tex. Rev. Civ. Stat. Art. 5190.6 §4B, (“the Act”) and to consider a funding agreement for the primary purpose of which is the developing, stabilizing, diversifying, and expanding the economy through the retention, recruitment, expansion, and employment opportunities of the citizens of Canyon and the surrounding area and to enhance the quality of life of the citizens of Canyon and the surrounding area. WHEREAS, the City Commission of the City of Canyon, Texas, finds it to be in the public interest to execute a Project Funding Agreement between the Canyon Economic Development Corporation and Rocar Inc., a registered entity qualified to do business in Texas. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS: That the Project Funding Agreement by and between CEDC and Rocar Inc., be, and it is hereby approved, and the sales tax revenue collected pursuant to “the Act” by CEDC may be used for the primary purpose of financial assistance for new business development. The sales tax revenue referred to in this Resolution shall be the revenue on deposit in Sales Tax Improvement Fund (Fund 40) for direct costs related to the project. INTRODUCED at the First Reading on the 8th of January 2018, and Adopted on the Second Reading on the 5th of March, 2018. ________________________________ GARY HINDERS, MAYOR ATTEST: _______________________________ Gretchen Mercer, City Clerk REGARDING ITEM 8 AGENDA To: Randy Criswell, City Manager From: Danny Cornelius, Director of Code Enforcement Date: February 13, 2018 Re: Hold Public Hearing and Consider and Take Appropriate Action on a Specific Use Permit Request by 806 Vapes to Operate an Electronic Cigarette Store at 306 23rd St. Chris Goodwin of 806 Vapes has submitted a Specific Use Permit application to operate an Electronic Cigarette Store at 306 23rd St. The City adopted Ordinance No. 1074 in November of 2017. The ordinance allows Smoke Lounges/Retail Stores in the RC-1, RC-2, I-1 and I-2 Zoning Districts by Specific Use Permit only. The property is located in the RC-2 Zoning District. Letters were sent to 13 property owners within 200 feet. One response was received in opposition to the request. The Planning and Zoning Commission voted unanimously to recommend approval of the request. City of Canyon  Planning and Zoning Commission Meeting Minutes – February 12, 2018 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: Bobbie Jo Krutsch, Charles Munger, Kevin Luetkahans, Laurie Sharp, and Leesa Wood Calvi. Commissioners John Pletcher, Larry Ramaekers, and Jon Davis were unable to attend. Also present were the following City Staff: City Manager Randy Criswell and Director of Code Enforcement Danny Cornelius. Item 1: Call to Order. Chairman Craddock called the meeting to order at 4:04 pm. Item 2: Approval of Minutes from the January 15, 2018 Meeting. Commissioner Krutsch moved, duly seconded by Commissioner Munger, to approve the minutes from the January 15, 2018 meeting. The motion passed unanimously. Item 3: Hold Public Hearing and Consider and Take Appropriate Action on a Specific Use Permit Request by 806 Vapes to Operate an Electronic Cigarette Store at 306 23rd Street. Chris Goodwin of 806 Vapes submitted a Specific Use Permit application to operate an Electronic Cigarette Store at 306 23rd St. The City adopted Ordinance No. 1074 in November of 2017. The ordinance allows Smoke Lounges/Retail Stores in the RC-1, RC-2, I-1 and I-2 Zoning Districts by Specific Use Permit only. The property is located in the RC-2 Zoning District. Letters were sent to 13 property owners within 200 feet. One response was received in opposition to the request. Chairman Craddock opened the Public Hearing at 4:05 pm. Mr. Goodwin described the business as specializing in tobacco harm reduction. He stated the store would sell only e-cigarettes and supplies. Minors are not allowed to make purchases. Jon Payne, Manager of the Canyon location, described his experience with “vapes”. He stated that it was first recommended by his cardiologist as a way to reduce nicotine and quit smoking. Jon Chaffin, a customer of 806 Vapes, stated that 806 Vapes helped him to overcome his cigarette and smokeless tobacco habit. Chairman Craddock closed the Public Hearing at 4:19 pm. City Manager Randy Criswell reminded the Commission that the purpose of the Specific Use Permit process is to determine if the location is appropriate. After discussion, Commissioner Krutsch moved, duly seconded by Commissioner Sharp, to recommend approval of the Specific Use Permit. The motion passed unanimously. Planning and Zoning Commission Meeting February 12, 2018 Page 2 of 2 Item 4: Adjourn. Chairman Craddock adjourned the meeting at 4:40 pm. Bill Craddock, Chairman Planning and Zoning Commission ATTEST: Gretchen Mercer, City Clerk REGARDING ITEM 9 AGENDA To: Randy Criswell, City Manger From: Mike Webb, Fire Chief Date: February 28, 2018 Re: Report From Fire Chief Mike Webb on Wildfire Potential and Action Plan. ________________________________________________________________________ In many areas, fire season seems to be year round now, requiring fire departments and communities be on heightened alert for possible wildfires. Recognizing the dangers and potential hazards that a wildfire can impact upon a community, I would like to discuss possible mitigation measures to help reduce the likelihood of a fire impacting the City of Canyon. City of Canyon REGARDING ITEM 10 AGENDA To: Randy Criswell, City Manager From: Chris Sharp, Assistant City Manager Date: February 16, 2018 Re: Consider and Take Appropriate Action of Recommendations from Board of City Development (BCD) for 2018 Budget. The Board of City Development met on February 13, 2018 to review and consider the proposed budget for the 2018 fiscal year. Requests were received from WTAMU, Texas, PPHM, Main Street, Canyon Chamber of Commerce, and Kids Inc. As you will recall, money for this budget comes from Hotel Occupancy (HOT) which is collected by our local hotels. Collections for 2016 were up 9.6% from the previous year as total collections came in at $249,053. As of January 1, 2018, there is a fund balance in this account of $92,067. The Board feels confident that collections will be at least the same if not more for 2018. Supporting documentation is attached. The Board unanimously voted to recommend a budget of $265,700 for 2018, with the option of awarding additional funds in June or July if HOT tax collections remain strong. With these additional awards, the Board desires to spend some of the growing fund balance for this account. These allocations are as follows: Billboard Lease $6,000 Xcel Energy $2,000 Texas $45,000 WTAMU $55,000 with a possible $10,000 additional award PPHM $45,000 with a possible $5,000 additional award Chamber of Commerce $90,000 with a possible $10,000 additional award Canyon Main Street $18,700 Kids Inc. $3,000 Total $264,700 Total Amount with Additional Award $289,700 Recommendation: Staff recommends approval of the 2018 BCD budget as presented, and authorizes the Board to allocate the additional funds to WTAMU, PPHM and the Chamber of Commerce during June or July if HOT tax collections remain strong. City of Canyon BCD Funding Requests - 2018 Anticipated Budget Total Available $250,000 Amount in account as of 1/31/18 $92,087 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) $ 2,000.00 $2,000.00 $2,000.00 Texas Panhandle Heritage Foundation $ 40,000.00 $45,000.00 $45,000.00 Advertising, Promotion WTAMU $ 55,000.00 $75,000.00 $55,000.00 Student Recruitment, Special Events Panhandle Plains Historical Museum $ 40,000.00 $50,000.00 $45,000.00 Marketing, Website Development, Promotional Efforts at conferences, Administrative Costs Chamber of Commerce $ 90,000.00 $162,215.00 $90,000.00 Chow-Down July 4th Celebration Fair on the Square Website Development Chamber Brochure Production Visit Canyon Campaign Canyon Main Street $ 20,000.00 $18,700.00 $18,700.00 Advertising Kids Inc $ 3,000.00 $3,000.00 $3,000.00 Basketball Tournament of Champions TOTAL $256,000.00 $361,915.00 $264,700.00 REGARDING ITEM 11 AGENDA To: Randy Criswell, City Manager From: Chris Sharp, Assistant City Manager Date: February 16, 2018 Re: Consider and Take Appropriate Action on Ordinance No. 1076 Adopting a New Rate Review Mechanism (RRM) Tariff to Govern Future Annual Rate Filings by Atmos West Texas The City, along with 66 other West Texas Cities Served by Atmos Energy Corporation, West Texas Division (“Atmos West Texas” or “Company”), is a member of the Steering Committee of Cities Served by Atmos West Texas (“Cities”). In 2007, the Cities and Atmos West Texas settled a rate application filed by the Company pursuant to Section 104.301 of the Texas Utilities Code for an interim rate adjustment commonly referred to as a GRIP filing (arising out of the Gas Reliability Infrastructure Program legislation). That settlement created a substitute rate review process, referred to as Rate Review Mechanism (“RRM”), as a substitute for future filings under the GRIP statute. Since 2007, there have been several modifications to the original RRM Tariff. The Ordinance that resolved the Company’s application under the RRM Tariff in 2017 also terminated the existing RRM Tariff and required a renegotiation of the terms of that tariff. Negotiations have taken place over the past several months, and have resulted in a revised RRM Tariff that has been agreed to by the Company. The Cities’ Executive Committee has recommended acceptance of the revised RRM Tariff, which is attached to the Ordinance. The RRM Tariff on which the 2017 rates were based allowed a rate of return on equity of 10.50%. The revised RRM Tariff reduces that to 9.8%. The revised RRM Tariff also captures the reduction in federal income tax rates from 35% to 21%, and should result in a rate reduction of about $3.1 million for West Texas Cities effective March 1, 2018. Prior RRM tariffs allowed Cities only three months to review the Company’s filing. The new revised Tariff expands that time period by two months. New applications by the Company should be made on or about April 1 of each year, with new rates effective October 1. A rate order from the Railroad Commission in an Atmos Texas Pipeline rate case adopted the position of Cities with regard to pensions and benefits that reduced allowed expenses, and that reduced level of expenses will be applicable under the new RRM Tariff. Recommendations: Staff recommends approval of Ordinance No. 1076 approving a new tariff authorizing an annual rate review mechanism (“RRM”) for ATMOS Energy as a substitution for the annual interim rate adjustment process. City of Canyon  ORDINANCE NO. 1076 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS, APPROVING A TARIFF AUTHORIZING AN ANNUAL RATE REVIEW MECHANISM (“RRM”) AS A SUBSTITUTION FOR THE ANNUAL INTERIM RATE ADJUSTMENT PROCESS DEFINED BY SECTION 104.301 OF THE TEXAS UTILITIES CODE, AND AS NEGOTIATED BETWEEN ATMOS ENERGY CORP., WEST TEXAS DIVISION (“ATMOS WEST TEXAS” OR “COMPANY”) AND THE STEERING COMMITTEE OF CITIES SERVED BY ATMOS WEST TEXAS; REQUIRING THE COMPANY TO REIMBURSE CITIES’ REASONABLE RATEMAKING EXPENSES; ADOPTING A SAVINGS CLAUSE; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE OPEN MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND LEGAL COUNSEL FOR THE STEERING COMMITTEE. 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 and similarly-situated West Texas municipalities created the Steering Committee of Cities Served by Atmos West Texas to efficiently address all rate and service matters associated with delivery of natural gas; and WHEREAS, the Steering Committee formed an Executive Committee to direct legal counsel and to recommend certain specific actions to all aligned West Texas Cities through resolution or ordinance; and WHEREAS, pursuant to the terms of a November 2007 agreement between the Steering Committee and Atmos West Texas that settled the Company’s interim rate filing under Section 104.301 of the Texas Utilities Code (a “GRIP” rate case), the Steering Committee and the Company collaboratively developed a Rate Review Mechanism (“RRM”) Tariff, ultimately authorized by the City in 2008, that allows for an expedited rate review process as a substitute for the GRIP process; and WHEREAS, the City has kept some form of a RRM Tariff in place until 2017 when it adopted an ordinance approving an RRM Tariff filing settlement and specifically calling for termination of the 1 existing RRM Tariff and negotiation of a replacement RRM Tariff following the Railroad Commission’s decision in a then-pending Atmos Texas Pipeline case (GUD No. 10580); and WHEREAS, the Steering Committee’s Executive Committee has recently approved a settlement with the Company on the attached RRM Tariff that contains certain notable improvements, from a consumer perspective, over the prior RRM Tariff, including a reduced rate of return on equity, acceptance of certain expense adjustments made by the Railroad Commission in the Order in GUD No. 10580, and the addition of two months to the time for processing a RRM Tariff application; and WHEREAS, the RRM Tariff contemplates reimbursement of Cities’ reasonable expenses associated with RRM Tariff applications; and WHEREAS, the Steering Committee’s Executive Committee recommends that all Steering Committee member cities adopt this ordinance and the attached RRM Tariff; and WHEREAS, the attached RRM Tariff is 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 attached RRM Tariff re-establishing a form of Rate Review Mechanism is just and reasonable and in the public interest, and is hereby adopted. Section 3. That Atmos West Texas shall reimburse the Cities’ reasonable expenses associated with adoption of this Ordinance and the attached RRM Tariff and in processing future RRM Tariff applications filed pursuant to the attached tariff. Section 4. That to the extent any resolution or ordinance previously adopted by the City 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. 2  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 this Ordinance shall be interpreted as if the offending section or clause never existed. Section 7. That this Ordinance shall become effective from and after its passage. Section 8. That a copy of this Ordinance shall be sent to Atmos West Texas, care of Phillip Littlejohn, Vice President of Rates and Regulatory, Atmos Energy Corporation, P. O. Box 1121, Lubbock, Texas 79408-1121, and to Geoffrey Gay, General Counsel to West Texas Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701. PASSED AND APPROVED this 5th day of March, 2018. GARY HINDERS, MAYOR ATTEST: APPROVED AS TO FORM: Gretchen Mercer, City Secretary Chuck Hester, City Attorney 3 REGARDING ITEM 12 AGENDA To: Randy Criswell; City Manager From: Dale Davis Date: 03/05/2018 Re: Consider and Take Appropriate Action on Resolution NO. 08-2018 for the submission and acceptance of the DJ Edward Byrne Memorial Justice Assistance Grant for P25 radio trunking system. Program through the Office of the Governor. The Canyon Police Department applied for a DJ Edward Byrne Memorial Justice Assistance Grant in the amount of funds up to $120,000.00. The Canyon PD grant request is for the sole purpose of purchasing radio equipment compatible with the P25 radio trunking system. Matching funds, from the City of Canyon, is required under this grant. In the near future, Amarillo Police Department, Potter County Sheriff’s office, along with Randall County Sheriff’s office, will migrate from the current radio system to a new 700 mhz radio system for first responders. This transition shall enhance communications capabilities, and address officer safety issues. Randall County S.O. provides communication services to the Canyon Police Department. It is imperative that Canyon Police, along with other first responders, make this seamless transition together. It is my recommendation that Resolution No. 08-2018 be adopted for the submission and acceptance of the DJ Edward Byrne Memorial Justice Assistance Grant so that funding can be distributed for the purchase of P25 700 mhz radio equipment. Respectfully, Dale Davis Chief of Police City of Canyon  RESOLUTION NO. 08-2018 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON, RANDALL COUNTY, TEXAS, AUTHORIZING THE SUBMISSION AND ACCEPTANCE OF A GRANT APPLICATION TO THE OFFICE OF THE GOVERNOR FOR THE DJ EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM FOR P25 RADIO TRUNKING SYSTEM FOR THE CITY OF CANYON POLICE DEPARTMENT; AND AUTHORIZING THE CHIEF OF POLICE TO REPRESENT THE CITY IN ALL MATTERS PERTAINING TO THIS APPLICATION. WHEREAS, The City of Canyon Commission finds it in the best interest of the citizens of Canyon, Randall County, Texas, that the DJ Edward Byrne Memorial Justice Assistance Grant Program for the P25 Radio Trunking System be operated for 2018/2019; and WHEREAS, The City of Canyon Commission agrees to provide applicable matching funds up to $120,000.00 for the said project as required by the DJ Edward Byrne Memorial Justice Assistance Grant Program grant application; and WHEREAS, The City of Canyon Commission agrees that in the event of loss or misuse of the Office of the Governor funds, The City of Canyon Commission assures that the funds will be returned to the Office of the Governor in full; and WHEREAS, The City of Canyon Commission designates the Canyon Chief of Police as the grantee’s authorized official. The authorized official is given the power to apply for, accept, reject, alter or terminate the grant on behalf of the applicant agency. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS: (A) That the City Commission has duly approved and authorized its submission and acceptance to the Office of the Governor, for the purpose of the DJ Edward Byrne Memorial Justice Assistance Grant Program for P25 Radio Trunking System for the City of Canyon Police Department. (B) That the City Commission designates the City of Canyon Police Chief to act as its duly authorized representative in all matters pertaining to this application. (C) That any grant funds received will be used for the purposes described in the City’s Office of the Governor DJ Edward Byrne Memorial Justice Assistance Grant Program application for the P25 Radio Trunking System. (D) That this resolution is effective from and after the date of adoption. SECTION 2. That should any part of this resolution conflict with any other resolution, then such of the conflicting resolution is repealed to the extent of the conflict with this resolution. SECTION 3. That should any word, phrase, or part of the resolution be found to be invalid or unconstitutional, such finding shall not affect any other word, phrase or part hereof and such shall be and continue in effect. PASSED AND APPROVED this 5th day of March, 2018. GARY HINDERS, MAYOR ATTEST: ____ GRETCHEN MERCER, CITY CLERK Grant Number: 3645001 REGARDING ITEM 13 AGENDA To: Mayor and City Commission From: Randy Criswell, City Manager Date: March 5, 2018 Re: Drought Contingency Plan Implementation – Information Only. Our drought contingency plan is a TCEQ mandated document required of public water systems with more than 3,300 connections. Its basic purpose is for water systems to have a regulatory avenue to protect the public health, water supply and facilities in instances of drought, other water supply interruptions or emergencies and to minimize the adverse effects to the water supply during these types of events. During the drought of 2011-12, we implemented Stage 1 of our drought contingency plan. The goal of Stage 1 of the plan is to increase public awareness of water conservation measures, heighten public notification of Stage 1 conditions and encouragement of voluntary water conservation measures. Then, as conditions unfolded in 2012, our water usage increased to the point of requiring us to move into Stage 2. Stage 2 moved us into requiring “even/odd” landscape watering day restrictions. Once the drought eased, Stage 2 was rescinded. However, in an attempt to keep the education and awareness theme going, Stage 1 conditions were never rescinded, even during periods of lower water usage, and even when we saw average or higher rainfall. As it turns out, that was a wise decision because we’re clearly not past the drought. Now, with record consecutive days without measurable precipitation and most of the panhandle region (including Randall County) being listed as in extreme drought by the US Drought Mitigation Center, I am going to implement Stage 2 of the Plan. There are two basic reasons for this. 1. We are in a record drought, again. 2. We have our East Elevated Storage tank out of service until probably May. As City Manager, the Drought Contingency Plan gives me the authority to enact the Plan at any Stage I deem appropriate and to make decisions in the best interest of the City as appropriate. In light of the two reasons listed above, I am going to direct staff to implement Stage 2 and we will go to mandatory even/odd watering days. Now that the days are about to begin to warm up, we need our citizens in conservation-minded thought. As mentioned, Stage 2 of the plan requires “even / odd” landscape watering day restrictions and a strong discouragement of non-essential water uses. Restricting irrigation to certain times of the day is also required. Below is a brief summary of the Stage 2 restrictions. Day of the Week Ending Address, Box No., etc. Monday No Irrigation Allowed Tuesday Odd Numbers (1,3,5,7,9) Wednesday Even Numbers (0,2,4,6,8) City of Canyon  AGENDA Thursday Odd Numbers Friday Even Numbers Saturday Odd Numbers Sunday Even Numbers Watering will only be allowed once per day, during the hours of 8:00 pm until 12:00 midnight or 12:00 midnight until 10:00 am on the designated days. Hand watering will be allowed for a maximum duration of one hour per day, any day of the week. Use of a hose end sprinkler is considered to be irrigation and is subject to the watering schedule. Non- essential water use is defined in the Plan. As you can see, this still allows for irrigation on three days a week, for all. The Plan does have penalties for violations. Violators will be issued a warning first, and then further violation carries a potential fine of fifty to five-hundred dollars per day of violation. The Plan allows the City Manager to have the discretion to authorize city personnel to enforce the ordinance, outside of the police department. Citations would be issued to violators along with photographic evidence of the violation. This is not an action item, but purely for informational purposes. There are attachments to this memo, showing the NOAA predictions for temperatures and precipitation over the next three months for your information as well. City of Canyon MARCH – APRIL – MAY 2018 PRECIPITATION OUTLOOK MARCH – APRIL – MAY 2018 TEMPERATURE OUTLOOK REGARDING ITEM 14 AGENDA To: Mayor and City Commission From: Randy Criswell, City Manager Date: March 5, 2018 Re: Discussion of Need and Protocol for City Commission Work Sessions. At the Strategic Planning meeting on February 22, there was some discussion expressing interest in having Work Sessions as part of our City Commission meetings. At the time of the writing of this memo, we’re trying to get information from other cities on how they manage these work sessions. The Mayor thought it would be a good thing to discuss going forward, and I agree. I do believe there are times when additional time needs to be spent going over specific items to allow for more comfortable discussion on complicated or complex items. Hopefully by meeting time if not before, we’ll have some information we can look to for some direction on how other cities do this. City of Canyon