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11-16-1999 (City Council) Agenda Packet MINUTES Wylie City Council Tuesday, November 16, 1999 - 7:00 p.m. Wylie Municipal Complex-Council Chambers 2000 State Highway 78 North,Wylie Texas Call to Order Mayor Mondy called the City Council Meeting to order, Tuesday,November 16, 1999 at 7:20 p.m. with the following Council members present: Joel Scott, Reta Allen, and Chris Trout. Councilman Young arrived at approximately 7:30 p.m. Councilman Jim Swartz and Councilman J.C. Worley were absent. Staff members present were: Mike Collins, City Manager; Mindy Manson, Assistant City Manager; Brady Snellgrove,Finance Director and Barbara Salinas,City Secretary. Citizens Participation No one came forward for participation. ITEMS FOR INDIVIDUAL CONSIDERATION Public Hearing 1. Hold the second of two Public Hearings to consider annexing all of a certain 4.9455 acre tract situated in the John W.Mitchell Survey,Abstract No.589,Collin County,Texas. The Mayor opened the Public Hearing, asking that anyone wishing to speak either in favor of or in opposition of the annexation request to come forward,stating their name and address and limiting their comments to three minutes. With no response,the Mayor then closed the public hearing. Approval of a Resolution 2. Consider and act upon a resolution authorizing intervention in GUD No. 8976,TXU Lone Star Pipeline's application to the Railroad Commission to increase its city gate rate,and participation with the Steering Committee of Cities Served by Lone Star in proceedings before the Railroad Commission or subsequent appeals,and requiring rate case expense reimbursement of reasonable costs incurred by the Committee. There was some discussion among Council with regard to the intent of the Resolution. Councilman Young expressed his concerns regarding the availability of both gas and electricity to new developments. Mr. Collins addressed this by stating that there has been some discussion with TXU regarding this issue. Mr. Collins further stated that the TXU representative stated that they are interested in discussing providing gas service to the community. Mr. Snellgrove and Mr. Collins clarified the Resolution by stating that the intent of Council's actions in that the Resolution is asking for"authorization to intervene"only. Wylie City Council Minutes November 16, 1999 Page 1 Councilman Scott made a motion to authorize intervention in GUD No. 8976, TXU Lone Star Pipeline's application to the Railroad Commission to increase its city gate rate, and participation with the Steering Committee of Cities Served by Lone Star in proceedings before the Railroad Commission or subsequent appeals, and requiring rate case expense reimbursement of reasonable costs incurred by the Committee. Councilman Trout seconded the motion. A vote was taken and the motion passed,5-0. Approval of an Ordinance 3. Consider and act upon approval of an Ordinance establishing the maximum prima facie speed limit along SH78 in the City of Wylie. Mr. Stanton Foerster,Transportation Engineer,addressed this item by providing a brief background of the issue. Mr.Forester explained that this was necessary as a follow up to a study done by the Texas Department of Public Safety. There was some discussion regarding the speed variance on State Highway 78. Councilman Scott made a motion to approve the Ordinance establishing the maximum prima facie speed limit along SH78 in the City of Wylie. Councilwoman Allen seconded the motion. A vote was taken and the motion passed,5-0. Staff Reports City Manager,Mike Collins reported on the status of the Presentation to the Texas Department of Transportation with regard to design. He stated that the outcome of said presentation would be passed along to Council. Mr. Collins reminded Council of the ceremony planned for the new fire truck at the TML exhibit at the Convention Center in Dallas. He advised that the City van would be available to transport those interested in attending and would leave the Complex at approximately 1:15 p.m. on Thursday,November 18. Ms.Manson,Assistant City Manager, reported that Mr.Robert Diaz has accepted the position as the Community Center Coordinator. Adjournment. With no further business to come before Council,the meeting was adjourned at 8:00 p.m. John Mondy,Mayor Attest: Barbara A. Salinas,City Secretary Wylie City Council Minutes November 16, 1999 Page 2 NOTICE OF SPECIAL MEETING Wylie City Council Agenda Tuesday, November 16, 1999 7:00 p.m. Wylie Municipal Complex-Council Chambers 2000 State Highway 78 North Wylie,Texas 75098 Item No. Agenda Item Action Taken Call to Order Invocation& Pledge of Allegiance Citizens Participation ITEMS FOR INDIVIDUAL CONSIDERATION Public Hearing 1. Hold the second of tow Public Hearings to consider annexing all of a certain 4.9455 acre tract situated in the John W. Mitchell Survey,Abstract No. 589,Collin County,Texas. Approval of a Resolution 2. Consider and act upon a resolution authorizing intervention in GUD No. 8976, TXU Lone Star Pipeline's application to the Railroad Commission to increase its city gate rate,and participation with the Steering Committee of Cities Served by Lone Star in proceedings before the Railroad Commission or subsequent appeals,and requiring rate case expense reimbursement of reasonable costs incurred by the Committee. Approval of an Ordinance 3. Consider and act upon approval of an Ordinance establishing the maximum prima facie speed limit along SH78 in the City of Wylie. Staff Reports Work Session Discussion of 1999 Bond Program and other capital projects. Adjournment. In addition to specifically identified Executive Sessions, Council Inay convene itttOEXACAtiVe Session at any point during the open meeting to discuss any item posted on this agenda Specific sections of the Open Meetings Act will be identified and announced should Council elect to convene into Exec 'e Session. I certify that this Notice of Meeting was posted on this the` day of , 1999 at 5:00 p.m.as required by ce with Section 551.042 of the Texas Government o e and appropriate news media contacted. Date Notice Removed MunicApal Comple$is Wheelchair accessible. Sign interpretation or other special assistance for disabled ees. Must be requested 48 hours in advance by contacting the City Secretary's Office at'972/442-8100 or re 972/442-8170. WYLIE CITY COUNCIL AGENDA ITEM NO. 1 • November 16, 1999 Issue: Hold the second of two Public Hearings to Consider Annexing all of a certain 4.9455 Acre tract situated in the John W. Mitchell Survey, Abstract No. 589,;Collin;County, Texas. Background: The City of Wylie has received a request for annexation from Lafayette Properties, Incorporated, on a 4.9455 acre tract generally located along the north side of McMillen Road across the street from the Southfork Mobile Home Park. The applicant is requesting annexation in order to enable development of the property utilizing City of Wylie utilities and has indicated a contract to develop the property has been issued. Specifically, per the applicant's request the City of Murphy, Texas, has released this property from their extraterritorial jurisdiction(ETJ)due to the fact that Murphy utilities are unavailable at this time (see attached resolution # 282). Staff has held preliminary discussions with the applicant regarding the use and zoning of this property and anticipate a request for rezoning subsequent to Council approval of the annexation request. Should the City Council approve the annexation request, the property will be temporarily zoned as A(Agricultural) until permanent zoning is established by the City Council. The procedure for establishing permanent zoning on annexed territory shall conform to the procedures established by law for the adoption of zoning regulations. Before a municipality may institute annexation proceedings, the governing body of the municipality must conduct two(2)public hearings at which persons interested in the annexation are given the opportunity to be heard. In compliance with state law, staff has prepared the following public hearing and institution schedule. As your can see,the two(2) public hearings have been scheduled for the November 9, 1999, and November 16, 1999, City Council Meetings. The date for the institution of the annexation proceedings has been scheduled for December 14, 1999. Notice published for the first public hearing: October 27, 1999 First Public Hearing: November 9, 1999 Notice published for the second public hearing: November 3, 1999 Second Public Hearing: November 16, 1999 Institution date (Adopt Ordinance): December 14, 1999 Financial Considerations: Not applicable Other Considerations: • Article 1, Section 3 of the Wylie City Charter authorizes the City Council to adjust boundaries. The City will also be required when the annexation is considered, under Section 43.056 of the Local Government Code, for provisions of Services to the annexed area and use it as directed in said statute (see attached service plan). Commission Recommendation: Not applicable Staff Recommendation: Approval Attachments: Applicant's letter Exhibit"A" legal description City limits boundaries map Service Plan Resolution )(Y) Prepared by Rev' ed by Finance City Manager Approval I_.I•T— _I.£3—q`. ()c:,i _ `-tr/',. . I%1. LAFAYETTE PROPERTIES, INC. 8235 DOUGLAS AvENUE, SUITE 650, LB-65 DALLAS, TEXAS 75225 , TELEPHONE 214 691.2556 FACSIMILIE 214 691-0682 DATE: PO 441 FROM: GARY DEFRAN To:lg.4 %ITVea LAFAYETTE PROPERTIES, INC. COMPANY:error or ,`6 PHONE: (214) 691.2556 PHONE: FAX: (214)691-0682 FAX: et it.44 •0I44 PAGES To FOLLOW: ro•• so.• PANV4 IAa itKommir REMARKS: ',at (Alamo kureor Tie of tiverftip wo Ix . siL Vaeforiewit -Mb 444, ifikicrtA "W J` I VIZ . lietlibC leiAtOVID LeA4 MLL.4l 8,,,,nTMMI CAA V3471‘ 1 1010T At L Y NOTICE THE DOCUSI ACCOMPA1NYING TI.S ELECOPY TRANS, ISSION CONTAIN CONFIDENTIAL INFORMATION wIIICR IS LEGALLY PRIVILEGED AND INTENDED ONLY FOR THE USE OF THE.RECIPIENT NAMED ADOVE. IF YOU RECEIVE THIS TELECOPY IN ERROR, PLEASE IMMEDIATELY NOTIFY US DY TELEPHONE OR ARRANGE FOR RETURN OF THE TRANSMITTED DOCUMENTS TO VS. YOU ARE HEREBY NOTIFIED TtIAT ANY DISCLOSURE,COPYING,OISTRIIK.TION OR THE TAKING OF ANY ACTION IN RELIANCE ON THE CONTENTS OF THIS TELECOPIED INFORMATION IS STRICTLY PROHIBITED. %V:\use rsT fanr•rs\genera! Aua- ? s _ .3‹1 09: a.OA P. 03 EXHIBIT A BEING all that certain tract or parcel of land situated in the John W. Mitchell Survey, Abstract No. 589, Collin County, Texas, same being all of that certain called (5.00) ocre tract of land conveyed to Gene Lewis by deed recorded in Volume 606, Page 546 of the Deed Records of Collin County, Texas. and being more particularly described by metes and bounds as follows: BEGINNING at a 5/8" iron rod found for corner at the southwest corner of said , Lewis tract, some being at the southeast corner of that certain 55 acre tract of land conveyed as "Tract 2" to Patsy Sue Donihoo by J.0. McWhirter and wife, Pearl A. McWhirter by deed recorded in Volume 942, Page 488 of the Collin County Deed Records, and being in the north line of that certain (115.155) ocre tract of land known os Southfork Mobile Home Pork conveyed to Clayton/Cambridg, Joint Venture by instrument recorded under County Clerk's File Number 92-0045237, Collin County Deed Records, and being in the centerline of old McMillan Rood — County Road No. 298, and the south line of o 20 foot prescriptive road easement and the north line a 50 foot right—of—way dedicated by said Southfork Mobile Home Pork, and from which a railroad spike found at the intersection of said centerline of old McMillan Rood, with the centerline of McCreary Road, bears North 89' 33' 04" West, a distance of 1818.08 feet; THENCE North 00' 40' 50" East, along the meanders of an old wire fence and the north line of said Donihoo tract, at a distance of 20 feet passing the north line of said old McMillan Rood and the north line of said prescriptive easement, and continuing on a total distance of 834.61 feet to a 5/8" iron rod found for corner at the northwest corner of said Lewis (5.00) acre tract, some being a common westerly southwest corner of that certain called (113.407) acre tract of lond conveyed to William E. Campbell, Jr., Trustee — McCreary Road Limited Partnership by deed recorded in Volume 881, Page 802 of the Collin County Deed Records; THENCE North 89' 47' 50" East, along the meanders of on old wire fence a distance of 264.00 feet to a 5/8" iron rod found for corner of the northeast corner of said Lewis (5.00) acre tract and a interior corner of said Campbell • (113.407) acre tract; THENCE South Off 40' 50" West, at o distance of 812.3 feet passing on iron pipe found at o corner fence post, at a distonce of 817.60 feet passing a 1/2" iron rod found in the north line of aforesaid prescriptive easement of old McMillan Rood, and continuing on o total distance of 837.60 feet to o 5/8" iron rod found for corner of the southeast corner of said Lewis (5.00) acre tract and the common southerly southwest corner of said Campbell (113.407) acre tract, same being in the centerline of soid old McMillan Rood, and being in the north line of that certain called (51.096) acre tract of land conveyed to Debra S. Thurmond by deed recorded under County Clerk's File No. 95-0090832 and correction deed under County Clerk's File No. 0017370; THENCE along the centerline of said old McMillon Rood, and the centerline of a 40 foot prescriptive rood easement, North 89' 41' 40" West, a distonce of 16.65 feet to a 5 8" iron rod found for corner at the northwest corner of said Thurmond (51.096) acre tract and the northeast corner of aforesaid Clayton/Cambridge Joint 'Venture (115.155) acre tract and the northeast corner of aforesaid dedicated 50 foot right—of—way; " THENCE continuing along the centerline of soid old McMillan Rood, and the south line of said 20 foot prescriptive road easement and the north line of said dedicated 50 foot right—of—way, North 89' 32' 36" West, a distance of 247.35 feet to the POINT or PLACE OF BEGINNING and CONTAINING 5.0668 ACRES OF LAND. which includes 0.1213 ACRES OF LAND lying in said 20 foot prescriptive rood easement, for o NET AREA OF 4.9455 ACRES OF LAND, more or less. Al.uq-- 1 F?--"`_ C)9 : 10A flu 1L° :::i. Ali; lt3 E;t f', � RESOLUTION NO. 282 WHEREAS, Donna Hinnant, the owner of an approximate five (5) acre tract of land situated in the extraterritorial jurisdiction of the City of Murphy, Texas. has requested that the City release that property from its extraterritorial jurisdiction; and WHEREAS, Donna Hinnant, desires to have the property annexed into the City of Wylie, Texas; and WHEREAS, the City of Murphy, Texas, is willing to cooperate in the release of the land from its extraterritorial jurisdiction to the extraterritorial jurisdiction of the City of Wylie and consent to the annexation of said land, conditioned upon the initiation of the annexation proceedings within six months of the date of this resolution and the completion of the annexation within eighteen months of the date of this resolution: NOW. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURPHY, TEXAS; That the five (5) acres of land, more particularly described in Exhibit A, attached hereto and made a part hereof for all purposes as though fully set out herein is hereby released from the extraterritorial jurisdiction of the City of Murphy, Texas, and the City of Murphy does hereby consent to the annexation of said property to be annexed by the City of Wylie, Texas; IT IS FURTHER RESOLVED, HOWEVER, that this consent and release of the extraterritorial jurisdiction is valid only if the City of Wylie initiates annexation proceedings within six months of the date of this resolution and completes such proceedings within eighteen months of the date of this resolution. ADOPTED this 16I" day of August, 1999. APPROVED: Qentie yor ATTEST: Linda B. Marley, cry Seci tary f I ----I - 1-1--- PARKER CITY L MIT � I SUBJECT 1 t- PROPERTY i 4 v El w: , McMillen Rd ,, i FE!I__=11 tIri ' I I �.. 2 /�1/p 6-1-J-' 1 ç ----- I1IflhIII oktili i -261■/- 1 14,i =S _ �_--_—__—_---_----____-- ".::Ci i I Ii11111111111111g—/ll== i --; C 42="" ==sp /IIIIIIItt`�Mils ! mils iii4;:$1••r—NE ER I �Ao� 1 III Vitali rile'47:: ♦ 1 ) �•44+= = t IgI�IItIIIrI ci = � �i4 - itW !� ��t1111 ---_--_— : . � All liui lllli IIPIS/iiM11111U1►: _-_-----T-----L---------- -1 1 i (_J -,,,. l "EXHIBIT B" CITY OF WYLIE, TEXAS SERVICE PLAN FOR ANNEXED AREA ANNEXATION ORDINANCE NO. DATE OF ANNEXATION ORDINANCE: ACREAGE ANNEXED: ACRES SURVEY, ABSTRACT & COUNTY: _William Patterson Survey_ _Abstract Number 716 _Collin County, Texas Municipal Services to the acreage described above shall be furnished by or on behalf of the City of Wylie, Texas (the "City") at the following levels and in accordance with the following schedule: A. POLICE SERVICE 1. Patrolling, responses to calls and other routine police services, within the limits of existing personnel and equipment and in a manner consistent with any of the methods of the City, extends police service to any other area of the municipality, will be provided within sixty(60) days of the effective date of the annexation ordinance. 2. As development and construction commence in this area, sufficient police personnel and equipment will be provided to furnish this area the maximum level of police services consistent with the characteristics of topography, land utilization and population density within the area as determined by the City Council within four and one-half(4-1/2) years from the effective date of the annexation ordinance, or upon commencement of development within the area, whichever occurs later. 3. Upon ultimate development of the area, the same level of police services will be provided to this area as are furnished throughout the City. B. FIRE SERVICES 1. Fire protection equipment by the present personnel and the present equipment of the Fire Department,within the limitations of available water and distances from existing fire stations,and in a manner consistent with any of the methods of the City, extends fire service to any other area of the municipality, will be provided to this area within sixty(60) days of the effective date of the annexation ordinance. 1 "EXHIBIT B" 2. As development and construction commence in this area, sufficient fire and emergency ambulance equipment will be provided to furnish this area the maximum level of fire services consistent with the characteristics of topography, land utilization and population density within the area as determined by the City Council within four and one-half(4-1/2) years from the effective date of the annexation ordinance, or upon commencement of development within the area, whichever occurs later. 3. Upon ultimate development of the area, the same level of fire and emergency ambulance services will be provided to this area as are furnished throughout the City. C. ENVIRONMENTAL HEALTH AND CODE ENFORCEMENT SERVICES 1. Enforcement of the City's environmental health ordinances and regulations, including but not limited to, weed and brush ordinances, junked and abandoned vehicle ordinances and animal control ordinances, shall be provided within this area sixty(60) days of the effective date of the annexation ordinance. These ordinances and regulations will be enforced through the use of existing personnel. Complaints of ordinance or regulation violations within this area will be answered and investigated within sixty(60) days of the effective date of the annexation ordinance. 2. Inspection services including the review of building plans, the issuance of permits and the inspection of all buildings, plumbing, mechanical and electrical work to ensure compliance with the City codes and ordinances will be provided within sixty(60) days of the effective date of the annexation ordinance. Existing personnel will be used to provide these services. 3. The City's zoning, subdivision, sign and other ordinances shall be enforced in this area beginning within sixty(60) days of the effective date of the annexation ordinance. 4. All inspection services furnished by the City, but not mentioned above, will be provided to this area beginning within sixty (60) days of the effective date of the annexed ordinance. 5. As development and construction commence in this area, sufficient personnel will be provided to furnish this area the same level of Environmental Health and Code Enforcement Services as are furnished throughout the City. D. PLANNING AND ZONING SERVICES The planning and zoning jurisdiction of the City will extend to this area within sixty(60) days of the effective date of the annexation ordinance. City planning will thereafter encompass this property, and it shall be entitled to consideration for zoning in accordance with the City's Comprehensive Zoning Ordinance and Comprehensive Plan. 2 C:Annex.ltr "EXHIBIT B" E. PARK AND RECREATION SERVICES 1. Residents of this property may utilize all existing park and recreational services, facilities and sites throughout the City, beginning within sixty (60) days of the effective date of the annexation ordinance. 2. Additional facilities and sites to serve this property and its residents will be acquired, developed and maintained at locations and times provided by applicable plans for providing parks and recreation services to the City. 3. Existing parks,playgrounds, swimming pools and other recreational facilities within this property shall,upon dedication to and acceptance by the City,be maintained and operated by the City, but not otherwise. F. SOLID WASTE COLLECTION 1. Solid waste collection shall be provided to the property in accordance with existing City policies,beginning within sixty(60) days of the effective date of the annexation ordinance. Residents of this property utilizing private collection services at the time of annexation shall continue to do so until it becomes feasible because of increased density of population to serve the property municipally. Commercial refuse collection services will be provided to any business located in the annexed area at the same price as presently provided for any business customer within the City, upon request. 2. As development and construction commence in this property and population density increases the property level, solid waste collection shall be provided to this property in accordance with the current policies of the City as to frequency, changes and so forth. 3. Solid waste collection shall begin within sixty(60) days of the effective date of the annexation ordinance. G. STREETS 1. The City's existing policies with regard to street maintenance, applicable throughout the entire City, shall apply to this property beginning within sixty (60) days of the effective date of the annexation ordinance. Unless a street within this property has been constructed or is improved to the City's standards and specifications, that street will not be maintained by the City. 2. As development, improvement or construction of streets to City standards commences within this property, the policies of the City with regard to participation in the costs thereof, acceptance upon completion and maintenance after completion, shall apply. 3 C:Annex.ltr "EXHIBIT B" 3. The same level of maintenance shall be provided to streets within this property which have been accepted by the City as is provided to City streets throughout the City. 4. Street lighting installed on streets improved to City standards shall be maintained in accordance with current City policies. H. ' WATER SERVICES 1. Connection to existing City water mains for water service for domestic, commercial and industrial use within this property will be provided in accordance with existing City policies. Upon connection to existing mains, water will be provided at rates established by City ordinances for such service throughout the City. 2. As development and construction commence in this property, water mains of the City will be extended in accordance with provisions of the Subdivision Ordinance and other applicable ordinances and regulations. City participation in the costs of these extensions shall be in accordance with the applicable City ordinances and regulations. Such extensions will be commenced within two (2) years from the effective date of the annexation ordinance and substantially completed within four and one-half(4-1/2) years after that date. 3. Water mains installed or improved to City standards which are within the annexed area and are within approved dedicated easements shall be maintained by the City beginning within sixty(60) days of the effective date of the annexation ordinance. 4. Private water lines within this property shall be maintained by their owners in accordance with existing policies applicable throughout the City. SANITARY SEWER SERVICES 1. Connections to existing City sanitary sewer mains for sanitary sewage service in this area will be provided in accordance with existing City policies. Upon connection, sanitary sewage service will be provided at rates established by City ordinances for such service throughout the City. 2. Sanitary sewage mains and/or lift stations installed or improved to City standards, located in approved dedicated easements, and which are within the annexed area and are connected to City mains will be maintained by the City beginning within sixty(60) days of the effective date of the annexation ordinance. 3. As development and construction commence in this area, sanitary sewer mains of the City will be extended in accordance with provisions of the Subdivision Ordinance and other applicable City ordinance and regulations. Such extensions will be commenced within two (2) years from the effective date of the annexation ordinance and substantially completed within four and one-half(4-1/2)years after that date. 4 C:Annex.ltr "EXHIBIT B" J. MISCELLANEOUS 1. Any facility or building located within the annexed area and utilized by the City in providing services to the area will be maintained by the City commencing upon the date of use or within sixty(60)days of the effective date of the annexation ordinance, whichever occurs later. 2. General municipal administration services of the City shall be available to the annexed area beginning within sixty(60)days of the effective date of the annexation ordinance. 3. [ADD IF VOLUNTARY ANNEXATION:The parties agree that because of the size or projected manner of development by the owner and/or developer, it is not reasonably expected and the parties do not require construction of capital improvements to be substantially completed within four and one-half(4-1/2)years. NOTE: owner will sign Service Plan if the annexation is voluntary]. 4. Notwithstanding anything set forth above, this Service Plan does not require all municipal services be provided as set forth above if different characteristics of topography, land use and population density are considered a sufficient basis for providing different levels of service. 5. The Service Plan is valid for ten(10) years from the effective date of the Ordinance. Owner Signature 5 C:Annexltr WYLIE CITY COUNCIL AGENDA ITEM NO. 0,/. November 16, 1999 Issue Consider and act upon a resolution authorizing intervention in GUD No. 8976, TXU Lone Star Pipeline's application to the Railroad Commission to increase its city gate rate, and participation with the Steering Committee of Cities Served by Lone Star in proceedings before the Railroad Commission or subsequent appeals, and requiring rate case expense reimbursement of reasonable costs incurred by the Committee. Background Lone Star Gas Company has filed a city gate rate case at the Texas Railroad Commission(8976). This filing would increase rates by $20.4 million (16% increase) and result in increased charges of approximately 150 per Mcf. The average monthly residential consumption on most Lone Star distribution systems varies from 4 to 6 Mcf, meaning that most residential customers would experience an average monthly increase of 600 to 900. Lone Star claims that the average residential user will see a 750 per month increase. The Order in the last Lone Star City Gate Rate Case (GUD 8664) was signed in November 1997. That order required the Company to file a gate rate case three years from the August 1997 TU/Enserch merger closing to demonstrate and reflect synergistic savings attributable to Texas Utilities' acquisition of Enserch, Lone Star's parent company. Lone Star has requested that GUD 8976 be designated as the merger savings docket, cutting almost a year off the Commission's filing requirement. In GUD 8664, the Commission authorized a return on equity of 10.94 percent. In this rate application, the Company seeks to increase its authorized return to 12 percent. In addition, in the GUD filing, the Company is estimating de minimus merger savings of approximately $9 million annually, even though in its recent distribution system filings, it has claimed that it does not specifically track merger savings. It is likely that thorough review of the cost of capital and merger savings issues will lead to substantial adjustments to the Company's claimed revenue requirements. The statute generally contemplates an effective date 35 days from the filing, however, the filing date can be suspended by the Railroad Commission for 150 days while it investigates the filing and holds hearings. In this case, Lone Star has declared its effective date to be December 20, 1999. That means the Commission will issue a final order on or before May 18, 2000. Financial Considerations The Steering Committee has funds available from prior assessments. It is unlikely that any financial assessment for intervention in GUD 8976 will be necessary. Cities are entitled to reimbursement from Lone Star of reasonable costs associated with participation in ratemaking proceedings. Other Considerations N/A Staff Recommendation It is recommended that the City Council adopt this resolution. Attachments Resolution Statement of Intent and Public Notice from TXU Lone Star )1() IL2 eeamio rep�Ired by Revie d by Finance City Manager Approval RESOLUTION NO. A RESOLUTION AUTHORIZING INTERVENTION IN GUD NO. 8976, TXU LONE STAR PIPELINE'S APPLICATION TO THE RAILROAD COMMISSION TO INCREASE ITS CITY GATE RATE; FURTHER AUTHORIZING PARTICIPATION WITH THE STEERING COMMITTEE OF CITIES SERVED BY LONE STAR IN PROCEEDINGS BEFORE THE RAILROAD COMMISSION OR SUBSEQUENT APPEALS;REQUIRING RATE CASE EXPENSE REIMBURSEMENT OF REASONABLE COSTS INCURRED BY THE STEERING COMMITTEE FOR ATTORNEYS,CONSULTANTS AND WITNESSES AND OTHER ASSOCIATED COSTS. WHEREAS, the City of Wylie, Texas, pursuant to GURA §103.023 has standing in each case before the Railroad Commission that relates to a gas utility's rates and services in the municipality; and WHEREAS,on October 29,1999, TXU Lone Star Pipeline filed a proceeding with the Railroad Commission(GUD No. 8976) to increase its city gate rate revenues by$20.4 million; and WHEREAS,the City and its residents may be adversely impacted by increases in the city gate rate; and WHEREAS,the City is entitled pursuant to GURA §103.022 to reimbursement of its reasonable costs associated with participation in ratemaking proceedings; and WHEREAS,the Steering Committee of Cities Served by Lone Star is a standing committee with representatives from numerous cities that are experienced in employing, directing and coordinating efforts of lawyers, consultants and expert witnesses working on behalf of cities in regulatory proceedings; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Wylie, Texas, that 1. The City of Wylie,Texas,is authorized to intervene in Railroad Commission GUD No. 8976. 2. The City of Wylie, Texas, will participate with other cities in GUD No. 8976 and in any subsequent appeals of that administrative proceeding through involvement with the Steering Committee of Cities Served by Lone Star. The Steering Committee is authorized to retain attorneys, consultants and expert witnesses that may be necessary to protect the interests of cities and their residents. 3. Lone Star shall promptly reimburse reasonable costs incurred by the Steering Committee of Cities Served by Lone Star for efforts undertaken in GUD No. 8976. 4. A copy of this resolution shall be sent to Jay Doegey, City Attorney of Arlington and Chairman of the Steering Committee of Cities Served by Lone Star, 200 W. Abrams Drive, Arlington, Texas 76010; fax no. 817-459-6897. DULY RESOLVED by the City Council of the City of Wylie, Texas, on this the 16th day of November, 1999. John Mondy, Mayor ATTEST: Barbara Salinas, City Secretary TXU TXU Lone Star Pipeline Stephen J.Houle 1601 Bryan Street Vice President Dallas,TX 75201-3411 Tel:214 812 4821 Fax:214 812 3221 October 29, 1999 • TO THE GOVERNING BODY OF INCORPORATED CITIES SERVED BY • TXU LONE STAR GAS Re: TXU Lone Star Pipeline City Gate Filing On this date, TXU Lone Star Pipeline, a division of TXU Gas Company(formerly known as Lone Star Pipeline Company, a division of ENSERCH Corporation) filed with the Railroad Commission of Texas, a Statement of Intent to change the city gate rate. The new rate,when approved will be applicable to all cities served by TXU Lone Star Gas (formerly known as Lone Star Gas Company)and will be reflected in the Gas Cost Adjustment provision of your approved tariffs. No action on the part of your city is required concerning this filing. A copy of the Statement of Intent is attached for your information and is provided pursuant to TEX. UTILITIES CODE § 104.102 (1999). In addition, a copy of the Public Notice is also included for your information. Please feel free to contact me or your local TXU Lone Star Gas representative if you have any questions or need additional information. TXU appreciates the opportunity to serve your community and we are committed to providing safe, dependable natural gas service at the lowest reasonable cost. Sincerely, Attachments RAILROAD COMMISSION OF TEXAS GAS SERVICES DIVISION STATEMENT OF INTENT TO CHANGE § THE CITY GATE RATE OF TXU LONE § GAS UTILITIES DOCKET STAR PIPELINE ESTABLISHED IN § NO. 8976 GUD-8664 § TO THE HONORABLE RAILROAD COMMISSION OF TEXAS: NOW COMES TXU Lone Star Pipeline,a division of TXU Gas Company, formerly known as Lone Star Pipeline Company, a division of ENSERCH Corporation ("Applicant"), a gas utility pursuant to Sections 101.003(7) and 121.001 of the Texas Utilities Code, and files this Statement of Intent to change the city gate rate for gas transported for subsequent distribution to residential and commercial users (hereinafter called the "gate rate"), which was established by the November 25, 1997, Order of the Railroad Commission of Texas ("Commission")in Gas Utilities Division Docket No. 8664(hereinafter called"GUD-8664"). This statement of intent to change rates is filed pursuant to Tex. Utilities Code §104.102 and the Rules of the Commission. Applicant would respectfully show the Commission the following: I. Applicant is an intrastate gas utility pipeline that transports natural gas to TXU Lone Star Gas-Transmission, which is an operating unit of TXU Lone Star Gas, a division of TXU Gas Company. TXU Lone Star Gas is a gas utility that distributes gas to residential and commercial end users in more than 440 incorporated cities, towns, villages, and their environs across Texas. II. Applicant's proposed changes to the rates established in GUD-8664 are reflected in detail in the tariffs,attached hereto as Exhibit A and incorporated herein by reference for all purposes. The revised rate schedules(tariffs)provided in Exhibit A reflect Applicant's request to charge a two-part -1- transportation rate that consists of a demand charge per MMBtu based upon the contractual demand for city gate service and a volumetric charge per MMBtu based on actual city gate delivered volumes. The Applicant's storage rate will consist of a monthly demand charge for capacity and a monthly demand charge for deliverability. The deliverability demand charge would only be charged during the months of November through March. The transportation rate and storage rate will replace the transportation and storage rates approved in GUD-8664. • III. Although the only directly affected customer is TXU Lone Star Gas-Transmission, the rate change will affect the 1.3 million residential and commercial customers served by TXU Lone Star Gas in the State of Texas. IV. The effective date of the proposed change is December 20, 1999. V. The proposed change will result in a "major change" as that term is defined in Section 104.101 of the Texas Utilities Code. In addition,the proposed rates will exceed 115% of the average of all rates for similar services of all municipalities served by the utility within the same county. Annual revenues of Applicant will increase approximately sixteen percent, or $20.4 million, if its request to increase rates is granted. VI. Applicant further requests approval of a six month surcharge to the final rates approved in order to collect the rate case expenses incurred by the Applicant in the course of prosecuting to conclusion this request for a rate increase, and any rate case expenses that are incurred by other parties and assessed to Applicant by the Commission. The surcharge should be approved for -2- addition to the city gate rate so that Applicant receives timely and accurate recovery of its rate case expenses. The surcharge should be calculated by dividing the total rate case expenses approved by the Commission by one-half of the adjusted annual sales volume to residential and commercial customers served under the city gate rate. Interest should be added each month on the uncollected expense balance at the rate of six percent per annum. Monthly status reports will be filed with the Commission until the surcharge is concluded. • VII. Publication of the required notices concerning the information relative to this Statement of Intent shall be made in accordance with applicable statutes and rules. Additionally, notice of this application will be delivered by mail to the appropriate city official of each incorporated city served by TXU Lone Star Gas. -3- Respectfully submitted, TXU Lone Star Pipeline, a division of TXU Gas Com any ar es R. Yarbrou , II State Bar No. 221 700 301 South Harwood Dallas,Texas 75201 (214) 875-3217 - Phone • (214) 747-1187 Clark,Thomas &Winters A Professional Corporation P. O. Box 1148 Austin,TX 78767 (512)472-8800-Phone (512)474-1129 -Fax es E. Mann State Bar No. 12926100 Casey Wren State Bar No. 22019300 ATTORNEYS FOR TXU LONE STAR PIPELINE, A DIVISION OF TXU GAS COMPANY -4- EXHIBIT A TXU LONE STAR PIPELINE 1. Company Name: TXU Lone Star Pipeline Rate Schedule No. 57 2. Customer Identification: TXU Lone Star Gas-Transmissionll'RC# 3. Type of Service: Storage service related to TXU Lone Star Gas-Transmission city gate deliveries 4. Date of Original Contract or Service: N/A 5. Date of Current Amendment: N/A 6. Contract Term: The rate was set by the Railroad Commission of Texas in a Final Order signed in GUD Docket Number . It will not change until a new rate is set by the Railroad Commission of Texas or conditions approved by the Railroad Commission of Texas are met. 7. Rate: TXU Lone Star Pipeline is authorized to charge TXU Lone Star Gas-Transmission a monthly deliverability charge of$1,435,310 for each annual period of November through March and a monthly capacity charge of$676,081 each month of the year for storage service applicable to city gate service. City gate service is for all volumes of gas transported on a firm basis by TXU Lone Star Pipeline to a TXU Lone Star Gas-Distribution city gate on behalf of TXU Lone Star Gas-Transmission for sale by TXU Lone Star Gas-Distribution to residential and commercial customers and for TXU Lone Star Gas-Distribution company-used and lost and unaccounted-for gas. 8. Rate Adjustment Provisions: 9. Type of Customer: Storage 10. Delivery/Redelivery Points: All delivery points for TXU Lone Star Gas-Transmission city gate deliveries/TRC# 11. Reason for filing: New rate set by the Railroad Commission of Texas. Issued Rate Schedule No. 57 Page 2 12. Contact Person: Mike Florence (214) 812-8163 Gas Rates Manager TXU Business Services 1601 Bryan Street Dallas,TX 75201 Issued TXU LONE STAR PIPELINE • 1. Company Name: TXU Lone Star Pipeline Rate Schedule No. 58 2. Customer Identification: TXU Lone Star Gas-TransmissionlTRC# 3. Type of Service: Firm transportation service related to TXU Lone Star Gas-Transmission city gat' deliveries. 4. Date of Original Contract or Service: N/A 5. Date of Current Amendment: N/A 6. Contract Term: The rate was set by the Railroad Commission of Texas in a Final Order signed in GUD Docket Number . It will not change until a new rate is set by the Railroad Commission of Texas or conditions approved by the Railroad Commission of Texas are met. 7. Rate: TXU Lone Star Pipeline is authorized to charge TXU Lone Star Gas-Transmission the following rates for firm city gate transportation service on the Mainline and Area Network Systems: Demand Charge per MMBtu of$3.9469 This demand charge is applicable to the daily delivery capacities for each month in the agreement between TXU Lone Star Pipeline and TXU Lone Star Gas-Transmission. Volumetric Charge of$0.0111 per MMBtu applicable to all city gate delivery volumes. City gate service is for all volumes transported on the Mainline and Area Network Systems on a firm basis by TXU Lone Star Pipeline to a TXU Lone Star Gas- Distribution city gate on behalf of TXU Lone Star Gas-Transmission for sale by TXU Lone Star Gas-Distribution to residential and commercial customers and for TXU Lone Star Gas-Distribution company-used and lost and unaccounted-for gas. These fees do not include any amount for TXU Lone Star Pipeline fuel or lost and unaccounted-for gas. In recognition of the fact that 1.1% of the volume delivered to Issued Rate Schedule No. 58 Page 2 TXU Lone Star Pipeline for transportation is used by TXU Lone Star Pipeline for fuel or is lost and unaccounted-for, TXU Lone Star Pipeline will deliver to TXU Lone Star Gas-Transmission 98.9% of the volume delivered to TXU Lone Star Pipeline by TXU Lone Star Gas-Transmission for the above firm transportation service. 8. Rate Adjustment Provisions: 9. Type of Customer: Transportation • 10. Delivery/Redelivery Points: All delivery points for TXU Lone Star Gas-Transmission city gate deliveries/TRC# 11. Reason for filing: New rate set by the Railroad Commission of Texas. 12. Contact Person: Mike Florence (214) 812-8163 Gas Rates Manager TXU Business Services 1601 Bryan Street Dallas, TX 75201 Issued PUBLIC NOTICE Pursuant to TEX.UTILITIES CODE§104.103 (1999), TXU Lone Star Pipeline, a Division of TXU Gas Company("Applicant")hereby gives notice of intent to change the city gate rate of TXU Lone Star Pipeline(formerly known as"Lone Star Pipeline Company")established by Order of the Railroad Commission of Texas in Gas Utilities Division Docket No. 8664 ("GUD 8664"). Applicant proposes a two-part transportation rate that consists of a demand charge per MMBtu based upon the contractual demand for city gate service and a volumetric charge per MMBtu based on actual delivered volumes. This transportation rate would result in a revenue increase to Applicant. Applicant also proposes to increase the storage rate applicable to city gate deliveries established in GUD 8664. The storage rate would consist of a monthly demand charge for capacity and a monthly demand charge for deliverability. The deliverability demand charge would only be charged during the months of November through March. The proposed effective date of the change is December 20, 1999. The change is a major change, and will result in an increase in annual revenues of approximately$20.4 million or sixteen percent(16%). The only directly affected customer is TXU Lone Star Gas-Transmission,but the rate change will also affect the 1.3 million residential and commercial customers in Texas served by TXU Lone Star Gas under the rates established by the local regulatory authorities in municipalities and the Railroad Commission environs areas. A Statement of Intent to make such a change has been filed with the Railroad Commission of Texas in GUD 8976 and is available for inspection at the Commission's office at 1701 North Congress in Austin,Texas, and at the offices of Applicant at 301 South Harwood in Dallas,Texas. Copies of the Statement of Intent have also been sent to the appropriate city official of each incorporated city served by TXU Lone Star Gas. WYLIE CITY COUNCIL AGENDA ITEM NO. . November 16, 1999 Consider and act upon approval of an Ordinance establishing the maximum prima facie speed limit along SH78 in the City of Wylie. Back up for this item will be presented at the November 16 worksession. NO. SPEED ZONE ORDINANCE AN ORDINANCE ALTERING THE PRIMA FACIE SPEED LIMITS ESTABLISHED FOR VEHICLES UNDER THE PROVISIONS OF SECTION 169(b) OF ARTICLE 6701 d, VERNON'S TEXAS CIVIL STATUTES, UPON STATE HIGHWAY NO. 78 OR PARTS THEREOF, WITHIN THE INCORPORATE LIMITS OF THE CITY OF WYLIE, AS SET OUT IN THIS ORDINACE; AND PROVIDING A PENALTY OF A FINE NOT TO EXCEED $200.00 FOR THE VIOLATION OF THIS ORDINACE. WHEREAS, Section 169(b) of Article 6701 d, Vernon's Texas Civil Statutes, provides that whenever the governing body of the City shall determine upon the basis of an engineering and traffic investigation that any prima facie speed therein set forth is greater or less than is reasonable or safe under the conditions found to exist at any intersection or other place or upon any part of a street or highway within the City, taking into consideration the width and condition of the pavement and other circumstances on such portion of said street or highway, as well as the usual traffic thereon, said governing body may determine and declare a reasonable and safe prima facie speed limit thereat or thereon by the passage of an ordinance, which shall be effective when appropriate signs giving notice thereof are erected at such intersection or other place or part of the street or highway; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1. Upon the basis of an engineering and traffic investigation heretofore made as authorized by the provisions of Section 169(b) of Article 6701 d, Vernon's Texas Civil Statutes, the following prima facie speed limits hereafter indicated for vehicles are hereby determined and declared to be reasonable and safe; and such speed limits are hereby fixed at the rate of speed indicated for vehicles traveling upon the named streets and highways, or parts thereof, described as follows: A. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: 1. That from and after the date of the passage of this speed zone ordinance, no motor vehicle shall be operated along and upon State Highway No. 78 within the corporate limits of the City of Wylie in excess of the speeds now set forth in the following limits: a) Beginning at said point (Station 375+68) being Wylie South City Limits thence continuing along SH78 in a Northerly direction for a distance of 1.348 miles (Station 446+85), approximately, ... a maximum speed of 55 MILES PER HOUR; b) Thence continuing along SH78 in a Northerly direction for a distance of 0.628 miles (Station 480+00), approximately, ... a maximum speed of 45 MILES PER HOUR; c) Thence continuing along SH78 in a Northerly direction for a distance of 0.568 miles (Station 510+00), approximately, ... a maximum speed of 40 MILES PER HOUR, and 25 MILES PER HOUR WHEN SO SIGNED FOR SCHOOL CROSSING; d) Thence continuing along SH78 in a Northerly direction for a distance of 0.538 miles (Station 538+40), approximately, ... a maximum speed of 45 MILES PER HOUR; e) Thence continuing along SH78 in a Northerly direction for a distance of 2.279 miles said point (Station 658+72) being Wylie North City Limits, ... a maximum speed of 60 MILES PER HOUR. Section 2. The Mayor of Wylie is hereby authorized to cause to be erected, appropriate signs indicating such speed zones. Section 3. Any person violating any of the provisions of this ordinance shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined in any sum not to exceed Two Hundred Dollars ($200.00). PASSED AND APPROVED THIS DAY OF , A.D., 19_ MAYOR City of Wylie, Texas ATTEST: City Secretary City of Wylie, Texas APPROVED AS TO LEGAL FORM: APPROVED: City Attorney City Manger City of Wylie, Texas City of Wylie, Texas I, , City Secretary of the City of Wylie, Texas, hereby certify that the above and foregoing is a true and correct copy of Ordinance No. adopted by the City Council of the City of Wylie, Texas, A.D., 19 . To certify which, witness my hand and seal of office this day of , A.D., 19 City Secretary City of Wylie, Texas