City Council
Regular MeetingMesquite, TX · September 28, 2020
Minutes
City of Mesquite, Texas
Minutes - Final
City Council
Monday, September 28, 2020 6:00 PM City Hall | Council Chamber
757 N. Galloway Avenue | Mesquite, Texas
Present: Mayor Bruce Archer and Councilmembers Robert Miklos, Dan Aleman, Tandy Boroughs,
Kenny Green, B. W. Smith and Sherry Wisdom, City Manager Cliff Keheley and City Secretary Sonja
Land.
REGULAR CITY COUNCIL MEETING - CITY COUNCIL CHAMBER - 6:07 P.M.
INVOCATION
Councilmember B.W. Smith.
PLEDGE OF ALLEGIANCE
Councilmember Sherry Wisdom.
OTHER BUSINESS
1 An ordinance, on second and final reading, approving a negotiated settlement
between the Atmos Cities Steering Committee (“ACSC”) and Atmos Energy
Corp., Mid-Tex Division (“Company”) regarding the Company’s 2020 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 settlement tariffs to be just and
reasonable and in the public interest; approving an attached exhibit establishing
a benchmark for pensions and retiree medical benefits; approving an attached
exhibit regarding amortization of regulatory liability; requiring the Company to
reimburse ACSC’s 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 ACSC ’s legal
counsel.
Ted Chinn, Assistant City Manager, stated that Atmos Energy filed its third rate
case under the 2018 revised Rate Review Mechanism (RRM) requesting an
adjusted $136.3 million increase in annual base revenues with $98.7 million of
this increase attributed to Atmos Cities Steering Committee (ACSC) cities. Since
2008 there have been 12 RRM filings. The RRM process has provided the ability
for the ACSC cities to negotiate rates directly with Atmos, which saves residential
and commercial customers a considerable amount of money. The City paid
$7,240.00 in membership fees to be a part of the ACSC. The settlement resulted in
a $0.70 cent increase to the residential base customer charge, which is an
increase of 9.9 percent in the average bill. The commercial base customer
City of Mesquite, Texas Page 1
City Council Minutes - Final September 28, 2020
charge will increase by $8.00 per month, which is an increase of 6.5 percent.
Atmos agreed to delay the effective date to December 1, 2020.
Mr. Green moved to approve Ordinance No. 4815, AN ORDINANCE OF THE CITY
OF MESQUITE, TEXAS, APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE
ATMOS CITIES STEERING COMMITTEE (“ACSC”) AND ATMOS ENERGY CORP.,
MID-TEX DIVISION (“COMPANY”) REGARDING THE COMPANY’S 2020 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 SETTLEMENT TARIFFS TO BE JUST AND REASONABLE
AND IN THE PUBLIC INTEREST; APPROVING AN ATTACHED EXHIBIT
ESTABLISHING A BENCHMARK FOR PENSIONS AND RETIREE MEDICAL
BENEFITS; APPROVING AN ATTACHED EXHIBIT REGARDING AMORTIZATION OF
REGULATORY LIABILITY; REQUIRING THE COMPANY TO REIMBURSE ACSC’S
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 ACSC’S LEGAL COUNSEL. Motion was seconded by Mr. Aleman and
approved unanimously. (Ordinance No. 4815 recorded in Ordinance Book No.
122.)
2 Authorize the City Manager to finalize and execute an Acknowledgment and
Consent between the City, Vanston Park Investments, LP (the “Developer”) and
COMMUNITYBANK of Texas, N.A. (the “Bank”): (i) consenting to a
$1,900,000.00 increase (the “Additional Advance”) in the loan dated September
12, 2014, by the Bank to the Developer in the current unpaid principal balance of
approximately $6,593,079.46 (the “Bank Loan”) in connection with the
development of the 155 unit housing project with related commercial space
(Villas at Vanston Park) located at 4520 Gus Thomasson Road, Mesquite,
Texas (the “Project”); and (ii) acknowledging that the economic development
loan dated September 12, 2014, by the City of Mesquite to the Developer in the
current unpaid principal balance of approximately $ 804,559.59 in connection
with the Project is subordinate to the Bank Loan as increased by the Additional
Advance.
(This item was postponed at the September 21, 2020, City Council meeting.)
Mr. Green left the meeting.
Cliff Keheley, City Manager, stated that there have been some concerns
regarding the conditions at the Villas at Vanston Park complex. After the last City
Council meeting, Council requested details regarding the steps being taken to
correct these concerns. Mr. Keheley stated that a plan has been submitted that
satisfactorily addresses the concerns and outlines a schedule of improvements to
ensure that the trash issue will be resolved. The number of trash collections by
Republic Waste Services has been increased and as required, a trash compactor
system with screening is being installed.
Mr. Miklos moved to authorize the City Manager to finalize and execute an
Acknowledgment and Consent between the City, Vanston Park Investments, LP
(the “Developer”) and COMMUNITYBANK of Texas, N.A. (the “Bank”): (i)
consenting to a $1,900,000.00 increase (the “Additional Advance”) in the loan
dated September 12, 2014, by the Bank to the Developer in the current unpaid
City of Mesquite, Texas Page 2
City Council Minutes - Final September 28, 2020
principal balance of approximately $6,593,079.46 (the “Bank Loan”) in
connection with the development of the 155 unit housing project with related
commercial space (Villas at Vanston Park) located at 4520 Gus Thomasson Road,
Mesquite, Texas (the “Project”); and (ii) acknowledging that the economic
development loan dated September 12, 2014, by the City of Mesquite to the
Developer in the current unpaid principal balance of approximately $804,559.59
in connection with the Project is subordinate to the Bank Loan as increased by
the Additional Advance. Motion was seconded by Ms. Wisdom. On call for a vote
on the motion, the following votes were cast:
Ayes: Miklos, Wisdom, Archer, Aleman, Boroughs, Smith
Nayes: None
Abstentions: Green
Motion carried.
Joseph Agumadu, Manager of Vanston Villas Development, LLC, expressed
appreciation to the Council for their consideration of this item.
PUBLIC HEARINGS
3 A. Conduct a public hearing regarding the proposed Fiscal Year 2020-21 ad
valorem tax rate of $0.70862 per $100 valuation.
B. An ordinance levying the ad valorem taxes for tax year 2020 (Fiscal Year
2020-21).
Mr. Green entered the meeting.
A public hearing was held regarding the proposed Fiscal Year 2020-21 ad
valorem tax rate of $0.70862 per $100 valuation.
Sheree Haynes, Manager of Collections, stated that State law requires a public
hearing prior to voting on the tax rate. The proposed tax rate is $0.70862 per $100
of assessed valuation.
No one appeared regarding the proposed Fiscal Year 2020-21 ad valorem tax
rate.
Mr. Boroughs stated, “I move that the property tax rate be increased by the
adoption of a tax rate of $0.70862 which is effectively a 1.02 percent increase in
the tax rate.”
And to approve Ordinance No. 4816, AN ORDINANCE OF THE CITY OF MESQUITE,
TEXAS, LEVYING THE AD VALOREM TAXES FOR THE YEAR 2020 AT A RATE OF
$0.70862 PER $100.00 ASSESSED VALUATION OF ALL TAXABLE PROPERTY
WITHIN THE CORPORATE LIMITS OF THE CITY OF MESQUITE, TEXAS, ON
JANUARY 1, 2020, TO PROVIDE REVENUE FOR THE PAYMENT OF CURRENT
EXPENSES AND INTEREST AND SINKING FUND REQUIREMENTS; PROVIDING FOR
DUE AND DELINQUENT DATES TOGETHER WITH PENALTIES AND INTEREST;
PROVIDING FOR PLACE OF PAYMENT; APPROVING THE 2020 TAX ROLLS AND
ANY SUPPLEMENT THERETO; PROVIDING CERTAIN EXEMPTIONS; PROVIDING A
REPEALER CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND DECLARING AN
EFFECTIVE DATE THEREOF. Motion was seconded by Mr. Aleman and approved
City of Mesquite, Texas Page 3
City Council Minutes - Final September 28, 2020
unanimously. (Ordinance No. 4816 recorded in Ordinance Book No. 122.)
EXECUTIVE SESSION - COUNCIL CONFERENCE ROOM - 6:30 P.M.
Mayor Archer announced that the City Council would meet in Executive Session pursuant to Section
551.074 of the Texas Government Code to consider the appointment, evaluation, employment,
reassignment, duties, discipline or dismissal of the City Manager, City Attorney, Municipal Court Judge,
City Secretary, members of the various City boards and commissions, and City officers or other City
employees (Conduct Municipal Court Judge candidate interviews); whereupon, the City Council
proceeded to meet in the Executive Conference Room. After the closed meeting ended at 7:15 p.m.,
the City Council reconvened in Open Session.
No executive action was necessary.
ADJOURNMENT
Mr. Miklos moved to adjourn the meeting. Motion was seconded by Ms. Wisdom
and approved unanimously. The meeting adjourned at 7:15 p.m.
Attest: Approved:
__________________________________ __________________________________
Sonja Land, City Secretary Bruce Archer, Mayor
City of Mesquite, Texas Page 4
Agenda
City of Mesquite, Texas
Meeting Agenda
City Council
Monday, September 28, 2020 6:00 PM City Hall | Council Chamber
757 N. Galloway Avenue | Mesquite, Texas
1. All persons present at the meeting location must observe social distancing by remaining a minimum of
six (6) feet from other meeting participants and must wear a covering over their nose and mouth.
2. Comments on agenda items may be made during the meeting or by submission on or before 3:00 p.m.,
on September 28, 2020, to the following email address: sland@cityofmesquite.com.
EXECUTIVE SESSION - COUNCIL CONFERENCE ROOM - 6:00 P.M.
In accordance with Chapter 551 of the Texas Government Code, the City Council reserves the right to
adjourn into executive session to discuss any of the following:
• Pending and/or Contemplated Litigation
• Purchase, Exchange, Lease or Value of Real Property
• Personnel Matters
• Economic Development
REGULAR CITY COUNCIL MEETING - CITY COUNCIL CHAMBER - 6:00 P.M.
INVOCATION
City Councilmembers.
PLEDGE OF ALLEGIANCE
City of Mesquite staff.
CITIZENS COMMENTS
At this time, any individual wishing to discuss any matter on the agenda shall be allowed to speak for a
length of time not exceeding three minutes on a first-come, first-served basis. Citizens addressing the
Council through a translator will be allowed six minutes. Anyone desiring to speak on an item scheduled for
a public hearing is requested to hold their comments until the public hearing on that item.
City of Mesquite, Texas Page 1 Monday, September 28, 2020
City Council Meeting Agenda September 28, 2020
OTHER BUSINESS
1 20-5030 An ordinance, on second and final reading, approving a negotiated
settlement between the Atmos Cities Steering Committee (“ACSC”) and
Atmos Energy Corp., Mid-Tex Division (“Company”) regarding the
Company’s 2020 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
settlement tariffs to be just and reasonable and in the public interest;
approving an attached exhibit establishing a benchmark for pensions and
retiree medical benefits; approving an attached exhibit regarding
amortization of regulatory liability; requiring the Company to reimburse
ACSC’s 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 ACSC’s legal
counsel.
Attachments: Ordinance
Rate Review Mechanism Background
2 20-5036 Authorize the City Manager to finalize and execute an Acknowledgment
and Consent between the City, Vanston Park Investments, LP (the
“Developer”) and COMMUNITYBANK of Texas, N.A. (the “Bank”): (i)
consenting to a $1,900,000.00 increase (the “Additional Advance”) in the
loan dated September 12, 2014, by the Bank to the Developer in the
current unpaid principal balance of approximately $6,593,079.46 (the
“Bank Loan”) in connection with the development of the 155 unit housing
project with related commercial space (Villas at Vanston Park) located at
4520 Gus Thomasson Road, Mesquite, Texas (the “Project”); and (ii)
acknowledging that the economic development loan dated September 12,
2014, by the City of Mesquite to the Developer in the current unpaid
principal balance of approximately $804,559.59 in connection with the
Project is subordinate to the Bank Loan as increased by the Additional
Advance.
(This item was postponed at the September 21, 2020, City Council
meeting.)
Attachments: Acknowledgment and Consent
Question and Answers from Applicant
Original Subordination Agreement
PUBLIC HEARINGS
3 20-4898 A. Conduct a public hearing regarding the proposed Fiscal Year 2020-21
ad valorem tax rate of $0.70862 per $100 valuation.
City of Mesquite, Texas Page 2 Monday, September 28, 2020
City Council Meeting Agenda September 28, 2020
B. An ordinance levying the ad valorem taxes for tax year 2020 (Fiscal
Year 2020-21).
Attachments: Ordinance
ADJOURNMENT
NOTICE OF EXECUTIVE SESSION
Pending and Contemplated Litigation
Pursuant to Section 551.071 of the Texas Government Code, the City Council will meet in closed session to
consider pending or contemplated litigation subjects or settlement offers. The following cases/subjects
may be discussed:
1. Kathy Dyer and Robert Dyer, Individually and as Representative of the Estate of Graham Dyer v. City of
Mesquite, Texas; Jack Fyall; Richard Houston; Alan Gafford; Zachary Scott; William Heidelburg; Paul
Polish; Joe Baker; Bill Hedgpeth – Filed 8-12-15; Cause No. 3:15-CV-02638-B; on appeal to the U.S. Court of
Appeals for the Fifth Circuit, Case No. 19-10280, Filed 6-3-19
2. Petition of the Cities of Garland, Mesquite, Plano, and Richardson appealing 2017 wholesale water rates
implemented by North Texas Municipal Water District, PUC Docket No. 46662 – Filed 12-14-16
3. Petition of the Cities of Garland, Mesquite, Plano and Richardson appealing 2018 Wholesale Water Rates
implemented by North Texas Municipal Water District, PUC Docket No. 47863 (Appealing Wholesale Water
Rates for 2018) – Filed 12-15-17
4. City of Mesquite v. Govind Group Corp., and 3629 E. US Highway 80, Mesquite, Texas 75150 in rem, Cause
No. DC-18-02903 – Filed 3-1-18
5. Haley Gregory v. City of Mesquite, EEOC #450-2018-06081 – Filed 7-25-18
6. City of Allen, City of Arlington, City of Bedford, City of Belton, City of Carrollton, City of Cedar Hill, City of
Colleyville, City of Coppell, City of Dalworthington Gardens, City of Euless, City of Fort Worth, City of
Garland, City of Grand Prairie, City of Harker Heights, City of Hutto, City of Irving, City of Killeen, City of
Lewisville, City of Mesquite, City of Rockwall, City of Rowlett, City of Waco and City of Wichita Falls, Texas
v. Time Warner Cable Texas, LLC d/b/a Spectrum and Charter Communications, Cause No. 2018-3835-4 –
Filed 10-19-18
7. Tejas Motel, LLC v. City of Mesquite, acting by and through its Board of Adjustment, Cause No.
DC-18-16933 – Filed 11-8-18; affirmed by Dallas Court of Appeals, Case No. 05-19-00667-CV; petition for
review filed with Texas Supreme Court, Case No. 20-0553
8. Petition of Magali Villarreal (MISD Bus Accident on 10-3-2018), Cause No. DC-19-06974 – Filed 5-15-19
9. Patricia Brennan and Alyssa Sanders, Individually and as Heirs of Natalie Sanders v. City of Mesquite,
Texas; Victor Palascios; Kyle Stone; Layton Winters; Peter Velasquez; Michael Kelly; Sherry Green;
Marcelet Martin, Cause No. 3:10-CV-01263-L – Filed 5-24-19
10. Patrish Ervin and John Dawson v. Mr. Phillip Aultman, Mesquite Police Department and the City of
Mesquite, Cause No. CC-19-03248-C – Filed 5-31-19
11. Corey Reynolds and Molly Reynolds v. The City of Mesquite, Mesquite Police Department, Officer Shedd
and Progressive County Mutual Insurance Company, Cause No. DC-20-07209 – Filed 5-22-20
12. Tejas Motel, L.L.C. v. City of Mesquite, Acting by and through its Board of Adjustment, Civil Action No.
3:20-cv-20-1982 – Filed 7-27-20
13. City of Mesquite v. Ulises Rivera, Jessica Rivera and 3509 Byrd Drive, Mesquite, Texas 75150 in rem,
Cause No. DC-20-12465 – Filed 9-3-20
14. City of Mesquite v. Thomas Chaddick, Catamount Properties 2018 L.L.C., and 1404 Quapaw Trail,
Mesquite, Texas 75149, in rem, Cause No. DC-20-13609 – Filed 9-17-20
City of Mesquite, Texas Page 3 Monday, September 28, 2020
City Council Meeting Agenda September 28, 2020
Personnel Matters
Pursuant to Section 551.074 of the Texas Government Code, the City Council may consider the
appointment, evaluation, employment, reassignment, duties, discipline or dismissal of the City Manager,
City Attorney, Municipal Court Judge, City Secretary, members of the various City boards and commissions,
and City officers or other employees. A complete list of the members of the City boards and commissions is
on file in the City Secretary’s office.
• Conduct Municipal Court Judge candidate interviews.
Following discussions in executive session, the City Council will reconvene in open session where any final
action regarding executive session items will be taken.
The City Council reserves the right to adjourn into executive session at any time during the course of this
meeting to discuss any of the matters posted on this agenda, when such executive session is authorized by
Texas Government Code Section 551.071 (Consultation with Attorney), 551.072 (Deliberations regarding
Real Property), 551.073 (Deliberations regarding Gifts or Donations), 551.074 (Personnel Matters),
551.076 (Deliberations regarding Security Devices or Security Audits) and 551.087 (Economic
Development); Texas Tax Code Section 321.3022 (Sales Tax Information) and Texas Government Code
Section 418.183(f) (Emergency Management).
The City Hall is wheelchair accessible. Any requests for sign interpretive services must be made 48 hours in
advance of the meeting. To make arrangements, call the City Secretary's office at 972-216-6244 or TDD
1-800-735-2989.
Pursuant to Section 30.06, Penal Code (trespass by license holder with a concealed handgun), a person
licensed under Subchapter H, Chapter 411, Government Code (handgun licensing law), may not enter this
property with a concealed handgun.
Conforme a la Sección 30.06 del Código Penal (entrada ilegal de persona titular de licencia con arma de
fuego oculta), personas con licencia segun el Sub-capitulo H, Capitulo 411, Código de Gobierno (ley de
permiso para portar arma de fuego), no deben entrar a esta propiedad portando un arma de fuego oculta.
Pursuant to Section 30.07, Penal Code (trespass by license holder with an openly carried handgun), a
person licensed under Subchapter H, Chapter 411, Government Code (handgun licensing law), may not
enter this property with a handgun that is carried openly.
Conforme a la Sección 30.07 del Código Penal (entrada ilegal de persona titular de licencia con arma de
fuego a la vista), personas con licencia segun el Sub-capitulo H, Capitulo 411, Código de Gobierno (ley de
permiso para portar arma de fuego), no deben entrar a esta propiedad portando una arma de fuego a la
vista.
Pursuant to Section 551.007 (c) of the Texas Local Government Code, any member of the public wishing to
address the City Council through the use of a translator is granted at least twice the amount of time as a
member of the public who does not require the assistance of a translator.
City of Mesquite, Texas Page 4 Monday, September 28, 2020
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