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11-09-1999 (City Council) Agenda Packet
NOTICE OF MEETING rt/.11 Wylie City Council Agenda Tuesday, November 9, 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, Presentations & Proclamations Presentation of the"Reach for a Star"Star Tree sponsored by the City of Wylie KidZone Program and Toy Drive Kick-off by the City Angels formerly known as the Blue Santa Program. Proclamation declaring Wednesday,November 10 as Student Government Day in Wylie, Texas. Citizens Participation Consent Agenda All matters listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by one motion. There will not be separate discussion of these items If discussion is desired that item will be removed from the consent agenda and will be considered separately. A. Approval of the Minutes from the Regular Meetings of October 12 and October 26, 1999. B. Consider and act upon approval of a Holiday Closing Policy for the Smith Public Library. C. Consider and act upon approval of adding specific language to the Rita and Truett Smith Public Library Internet Use Policy. D. Consider and act upon final acceptance of the construction of parking lot paving improvements for the Wylie Municipal Service Center,Phase 2,and provide authorization for final payment to Morrow Construction in the amount of$11,831.40. ITEMS FOR INDIVIDUAL CONSIDERATION Public Hearing 1. Hold the first 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. Approval of Ordinances 2. Consider and act upon approval of an Ordinance establishing a cross connection program for the purpose of protecting its drinking water supply from contamination and/or pollution due to any cross connections. 3. Hold a public hearing and consider and act upon an ordinance of the City of Wylie,finding that TXU Lone Star Gas Company's rates within the City should be changed,determining just and reasonable rates,adopting weather normalization adjustment,rejecting plant and investment cost of service automatic adjustment clauses,approving an adjustment factor for franchise fees and state occupation tax,providing for recovery of rate case expenses, preserving regulatory rights of the City,ordering that this ordinance be served on TXU Lone Star Gas Company and providing for repeal of conflicting clauses. Work session • Discussion Kirby/Stone Alignment • Discussion on city water revenues 4. Consider and act upon a proposal for the purchase and installation of a meter reading system from Datamatic,Inc. of Richardson,Texas. Staff Reports Executive Session In accordance with Chapter 551, Government Code, Vernon's Texas Codes Annotated (Open Meeting Law). Section 551.072,Deliberation Regarding Real Property. Reconvene into;Open,Meeting Take any action as a result of Executive Session. Adjournment. In addition to specifically identified Executive Sessions, Council may convene into Executive 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 Executive Session. I certify that this Notice of Meeting was posted on this the day of , 1999 at 5:00 p.m.as required by law in accordance with Section 551.042 of the Texas Government Code and appropriate news media contacted. City Secretary Date Notice Removed The Wylie Municipal Complex is Wheelchair accessible. Sign interpretation or other special assistance for disabled attendees. Must be requested 48 hours in advance by contacting the City Secretary's Office at 972/442-8100 or TDD 972/442-8170. MINUTES Wylie City Council Tuesday, October 12, 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, October 12, 1999 at 7:00 p.m. with the following Councilmembers present: Joel Scott, Reta Allen, Jim Swartz, J.C. Worley and Chris Trout. Councilman Merrill Young was absent. Staff members present were: Mike Collins, City Manager; Mindy Manson, Assistant City Manager; Brady Snellgrove, Finance Director; Tobin Maples,Planning Director,Fire Chief Shan English and Barbara Salinas, City Secretary. Invocation Reverend Mark Forrest,Murphy Road Baptist Church was present to give the invocation. Pledge of Allegiance Councilman Trout was asked to lead the Pledge of Allegiance. Presentations & Proclamations The Mayor read and presented the Proclamation declaring October October 25-29, 1999 as Red Ribbon Week. Chief Jeff Butters and DARE Officer Karen Riley representing the Wylie Police Department were present to accept. Ms.Amy Warner,Historic Preservation Consultant,provided a presentation to Council on the status and goals with regard to Historic Preservation in Wylie. She provided a brief background,recommendations and definitions of specific terms. Ms. Manson advised that the next step,pending word on the grant application,would be to draft an ordinance for Council consideration. Citizens Participation Deborah Wages 1540 Coral Reef Ms. Wages expressed concerns regarding the ditch in front of the Newport Harbor subdivision. Mr. Hoisted, Hogan Corporation stated that he would be meeting with Carter Burgess on October 19. Mayor Mondy asked that Mr.Holsted visit with Ms. Wages after this meeting. CONSENT AGENDA A. Consider and Act upon approval of the minutes from the Regular Meeting of September 14 and September 28, 1999. B. Consider and act upon approval of a final plat for the Provident Bank Addition,proposed by Provident Bank for the property generally located along the north side of SH 78 and the railroad tracks between Birmingham Avenue and Jackson Street and being all of a.9863 acre tract out of the Samuel B. Shelby Survey,Abstract No. 820,City of Wylie,Collin County,Texas. Wylie City Council Minutes October 12,1999 Page 1 C Consider and act upon approval of a Resolution of the City of Wylie, Texas,regarding the continued operations of the Garland Sanitary Landfill on Yeager Road and Princeton Road. Councilman Scott made a motion to approve Items A,B,and C on the Consent Agenda. Councilwoman Allen seconded the motion. A vote was taken and the motion passed, 6-0. ITEMS FOR INDIVIDUAL CONSIDERATION 1. Consider and act upon approval of a preliminary plat for the Summit Private School Addition, proposed by Jonvitch,Inc.,for the property generally located at the southwest corner of Brown Street and Rustic Trail and being all of a 4.039 acre tract out of the Samuel B. Shelby Survey, Abstract No.820,City of Wylie,Collin County,Texas. Mr. Maples, Planning Director addressed this item. Mr. Maples provided Council with a brief background of the preliminary plat. He noted that the applicant has shown a 10'rear yard building line on the face of the plat and that 20'is required. He stated that staff is recommending the applicant revise the face of the plat(change 10'to 20')or remove the rear yard building line altogether as it is not required to be shown. Mr. Maples stated that the Commission voted unanimously to favorably recommend per staff stipulations. Councilman Worley made a motion to approve the preliminary plat for the Summit Private School Addition, proposed by Jonvitch,Inc.,for the property generally located at the southwest corner of Brown Street and Rustic Trail and being all of a 4.039 acre tract out of the Samuel B. Shelby Survey,Abstract No. 820, City of Wylie, Collin County,Texas. Councilman Trout seconded the motion. A vote was taken and the motion passed,6-0. Consideration of a Resolution 2. Consider and act upon issues surrounding the issuance of debt by the Wylie Economic Development Corporation for the purchase of an industrial facility generally located at 404 S. Highway 78(Extruders division of Atrium Companies,Inc.). Mr. Sam Satterwhite addressed this item. Mr. Satterwhite provided Council with a history of this issue and the involvement of the WEDC. He explained that after Extruders announced that they would move their facility to Rockwall,the WEDC indicated they would consider purchasing the existing Extruders facility. After Extruders acceptance of the offer,staff requested bid packages to finance the purchase from First National Bank of Sachse, Provident Bank of Wylie,American National Bank of Wylie and Wells Fargo First National Bank,FEC Electric and Chase Bank of Texas. In July of 1999 the WEDC selected American National Bank,Wylie as the fmancial institution to fund the$1,234,409 loan to purchase the existing facility. Mr. Satterwhite concluded that on going negotiations continue with Extruders for the 250,000 square foot consolidation/expansion of Extruders to Premier Business Park. Mr. Satterwhite stated that the WEDC Board passed and approved a Resolution at the October 12, 1999 meeting that authorizes the WEDC Chairman,John Yeager,to execute the promissory note necessary to borrow the$1,234,409. Council inquired as to soil and structure testing. Mr. Satterwhite responded that pre analysis shows that soil is acceptable. He stated that the intent is to lease the facility for five years during the construction of the new facility,with occupancy of the smaller portion not to exceed 18 months. Wylie City Council Minutes October 12,1999 Page 2 Councilman Scott made a motion to approve the Resolution approving the issuance of debt by the Wylie Economic Development Corporation for the purchase of an industrial facility generally located at 404 S. Highway 78(Extruders division of Atrium Companies,Inc.). Councilman Swartz seconded the motion. A vote was taken and the motion passed,6-0. Consideration of Agreement Amendments 3. Consider and act upon approval of an amendment to the City's ambulance service contract with East Texas Medical Center. Fire Chief, Shan English addressed this item. Chief English provided Council with a brief history of the ambulance service contract with East Texas Medical Center. He advised that recently,ETMC has informed the members of the Coalition that their organization is losing money on the regional contract and can not continue to provide the current level of service without a subsidy. Chief English advised Council that after city staff and representative of the Coalition met,modifications were made to the contract to allow ETMC to maintain adequate service in the area. Those amendments were as follows: 1. All participating entities will pay a$2.147 per capita subsidy based on current population figures. The City of Wylie's share amounts to an annual subsidy of$28,940.00. 2. Sachse,Parker and Seis Lagos will join the Coalition and pay their fair share of the per capita subsidy. 3. ETMC will deploy only one ambulance in Wylie,to be backed up by their ambulance in Farmersville, when available. They will also donate to the City one fully stocked and equipped MICU ambulance, which will be staffed and operated by the Wylie Fire Department and will become the property of the City.This unit will serve as the second back up ambulance when ETMC's units in Wylie and Farmersville are on calls.A second ambulance will be donated at a later date. This unit will be put in service as soon as one of the other Coalition cities is capable of staffing and operating it. The amendment specifies the responsibilities of each party with regard to these Coalition operated ambulances. 4. ETMC will use any revenue derived from the sale of ambulance service subscriptions to proportionately reduce the amount of the subsidy. The amount of the subsidy will also be reduced in proportion to any subsidy collected from Collin County for ambulance service in the City's service area. 5. ETMC will be allowed to increase the base rate for ambulance service user fees in an amount not to exceed$200.00. Chief English explained that funding for the$28,940.00 ambulance contract subsidy will have to be allocated in the Combined Services operating budget for FY 2000. Additional funds will also be budgeted for the increase in Fire Department personnel expense attributable to the operation of the WFD staffed ambulance. Chief English concluded by stating that the Ambulance Board was convened and apprised of the contract amendments,staffing and the proposed back up ambulance staffing plan. He also stated that Staff recommends that Council approve the proposed amendment to the ambulance service contract with East Texas Medical Center, with an effective date of November 1, 1999. There was some discussion with Council regarding coverage and future costs. Councilman Scott made a motion to approve an amendment to the City's ambulance service contract with East Texas Medical Center, all participating entities to pay a$2.147 per capita subsidy. Councilwoman Allen seconded the motion. A vote was taken and the motion passed,6-0. Wylie City Council Minutes October 12,1999 Page 3 4. Consider and act upon approval of an amendment to an Agreement approved August 10, 1999 between the City of Wylie and the Kansas City Southern Railway Company. City Manager Mike Collins addressed this item. Mr. Collins provided a brief history of this item. He stated that Language was added to Section 1.3 that defines the City of Wylie's and KCS's liability associated with the actual sewer line relocation construction work. Section 1.4 clarifies the requirement that the City of Wylie implement a health and safety environmental program during the construction. Section 1.5 establishes the responsibility of the City of Wylie with regard to the groundwater monitoring wells on the site. Section 1.6 establishes that repayment to the City will be no later than June 1,2000. Councilman Scott made a motion to approve the amendment to an Agreement approved August 10, 1999 between the City of Wylie and the Kansas City Southern Railway Company. Councilwoman Allen seconded the motion. A vote was taken and the motion passed, 6-0. Staff Reports City Manager Mike Collins reported briefly on the recent news articles regarding interpretations of the Open Meeting Law. Council was in agreement that the intent of this legislation was not intended to restrict Citizens Participation during open meetings. Mr. Collins provided updates on the Service Center project and stated that staff will be meeting with WISD on the possibility of a joint use facility. He also stated that we may have preliminary costs for the proposed animal shelter as early as October 26, 1999. Mr. Collins advised Council of the establishment of a Capital Improvements Team that will hold its first organizational meeting on October 20, 1999. He advised Council of many upcoming issues that staff will be scheduling for upcoming work sessions. Assistant City Manager,Mindy Manson reminded Council of the Chili Cookoff scheduled for October 16 in Olde City Park and that Judges were still needed. Executive Session The Mayor then convened into Executive Session In accordance with Chapter 551, Government Code, Vernon's Texas Codes Annotated(Open Meeting Law). Section 551.071,Consultation with Attorney;pending or contemplated litigation, Eastfork Special Utility District. Reconvene into Open Meeting There was no action taken as a result of Executive Session. Work Session Preliminary Local Perferrred Alternative Design for State Highway 78 City Manager,Mike Collins provided a brief history of the work of the Local Design Team. Mr. Stanton Foerster then presented the recommended design for State Highway 78. He gave detailed description and explanation of the concept and future benefits to the community. Mr. Forester stated that this design would be presented to TxDot,with emphasis on State Highway 78 impacts only. Wylie City Council Minutes October 12,1999 Page 4 Adjournment. John Mondy,Mayor Attest: Barbara A. Salinas,City Secretary Wylie City Council Minutes October 12,1999 Page 5 MINUTES Wylie City Council Tuesday, October 26, 1999 - 7:00 p.m. Wylie Municipal Complex-Council Chambers 2000 State Highway 78 North,Wylie Texas Call to l Order Mayor Mondy called the City Council Meeting to order, Tuesday, October 26, 1999 at 7:00 p.m. with the following Councilmembers present: Joel Scott,Reta Allen,Jim Swartz,Merrill Young,J.C. Worley and Chris Trout. Staff members present were: Mike Collins, City Manager; Mindy Manson, Assistant City Manager; Brady Snellgrove,Finance Director;Tobin Maples,Planning Director;Chris Holsted,City Engineer/Hogan Corporation and Barbara Salinas,City Secretary. Invocation Councilman Scott was asked to give the invocation. Pledge of Allegiance Councilman Worley was asked to lead the Pledge of Allegiance. Citizens Participation There were no citizens who came forward for Citizens Participation. ITEMS FOR INDIVIDUAL CONSIDERATION 1. Consider and act upon approval of a Resolution for the City Council of the City of Wylie,Collin County, Texas, to consider adoption of the Locally Preferred Alternative State Highway 78 Design according to the Local Design and Mobility Task Force's recommendations and submit the proposed design to the Texas Department of Public Safety. Mr. Stanton Forester,Traffic Engineer,provided Council with a history of the Local Design Team and the work they have accomplished. He stated that the focus of the preliminary design was on safety and enhancements to the downtown area. Mr. Forester provided an overhead design of State Highway 78. He pointed out the"S" curve in the roadway design, which satisfies the safety requirement, and allows creation of the Ballard Street/Brown Street 90 degree intersections. He also discussed the additions of medians also enhances the design as well as addressing safety concerns. There was discussion on the Ballard Street Intersection and use of parkland to accomplish the new street alignment. Mr. Foerster stated that if approved,the Locally Preferred Alternative will be formally submitted to the Texas Department of Transportation for its formal approval. Councilman Trout made a motion to approve the Resolution for the City Council of the City of Wylie, Collin County,Texas,to consider adoption of the Locally Preferred Alternative State Highway 78 Design according to the Local Design and Mobility Task Force's recommendations and submit the proposed design to the Texas Department of Public Safety. Councilman Worley seconded the motion. A vote was taken and the motion passed,7-0. Wylie City Council Minutes October 26,1999 Page 1 2. Consider and act upon authorizing the City Manager to enter into a contract with Winkelman and Associates in an amount not to exceed$48,000 for survey services related to the Ballard Street reconstruction- 1999 Bond Program. City Manager Mike Collins addressed tl ds issue. Mr. Collins provided Council with a brief history of this issue. Mr.Collins stated that this is part of the 1999 City Bond Program that included a project to reconstruct 2.4 miles of a portion f Ballard Avenue from Stone Drive to Muddy Creek in the city limits and ETJ of the City of Wylie. He stated that Collin County voters approved in a County Bond program funds for improvements to Ballard Street. The City has received permission from Collin County to combine the county funds with City funds and design and bid a single project. Councilman Scott made a motion to approve authorizing the City Manager to enter into a contract with Winkelman and Associates in an amount not to exceed$48,000 for survey services related to the Ballard Street reconstruction- 1999 Bond Program. Councilman Trout seconded the motion. A vote was taken and the motion passed,7-0. 3. Consider and act upon a motion to direct the City Manager to enter into a professional service agreement with Stanland&Associates,As Needed for the re-write of the Comprehensive Zoning Ordinance for the City of Wylie. Planning Director,Tobin Maples addressed this item. Mr.Maples stated Per Council direction,the City Manager has negotiated a professional service contract with Raymond E. Stanland of Stanland&Associates for the re- write of the Comprehensive Zoning Ordinance for the City of Wylie. He stated that the contract under consideration is a multi phase re-write of our existing zoning ordinance and consists of seven(7)phases. And according to the schedule,Council could consider adopting the initial phase(residential development standards) of the re-write within four(4)months and the final few phases within eighteen(18)months. He stated that it should be noted that the consultant( Stanland&Associates)will hire the consultants who developed the City of Wylie Comprehensive Plan(Wallace,Roberts,&Todd)to assist in this project as outlined in the Scope of Work, specifically,the Comprehensive Plan consultants will provide expertise during the development of all applicable design standards. Mr.Maples stated that Mr.Raymond E. Stanland,AICP,with Stanland&Associates was present and available to answer any questions from Council. Mr. Stanland provided Council with a presentation of strategy in three phases and was then available for questions from Council. Council expressed concerns regarding the cost, $149,220.00. Mr. Maples explained that the work done by Wallace,Roberts&Todd is included within the total cost. Councilman Scott made a motion to authorize the City Manager to enter into a professional service agreement with Stanland&Associates,as needed for the re-write of the Comprehensive Zoning Ordinance for the City of Wylie. Councilman Trout seconded the motion. A vote was taken and the motion passed, 4-3. Councilman Swartz, Councilwoman Allen and Councilman Worley voted in opposition. 4. Consider and act Upon a preliminary plat/development plan for the Creekside Estates Addition proposed by Gary Defrain for Campbell Wylie Partners,for the property generally located at the northeast corner of McCreary Road and McMillan Road and being all of a certain 296.441 acre tract out of the John W.Mitchell Survey,Abstract No.589 and the Lewis M.Marshall Survey, Collin County,Texas. Wylie City Council Minutes October 26,1999 Page 2 Councilman Worley completed an Affidavit of Conflict of Interest on Item No. 4 and removed himself from discussion and vote. Planning Director,Tobin Maples addressed this item. Mr. Maples stated that the preliminary plat/development plan under consideration is for Creekside Estates and that the applicant is preliminary platting 296.441 acres in order to develop the property with a master planned single family residential community, specifically, the applicant is proposing a master planned community encompassing single family and open space uses. He stated that the development plan aspect of this case is the final step associated with establishing the PD (Planned Development)zoning requested. In order to establish a PD(Planned Development),the developer must follow a two-step process which includes submitting for approval a Conceptual Plan and a Development Plan. Mr.Maples stated that the developer must first submit for approval a Conceptual Plan and that the Conceptual Plan must show the applicant's intent for the use of the land within the proposed development in a graphic manner as required by Staff, and be supported by written documentation of proposals and standards for development. He added that the Conceptual Plan must also show thoroughfares, preliminary lotting arrangements and other pertinent development data deemed necessary. Mr.Maples stated that the Second phase of establishing a PD District is submitting for approval a Development Plan. The Development Plan shall set forth the fmal plans for the PD District and shall conform to the data presented and approved on the Conceptual Plan. The Development Plan is a complete site inventory analysis of what is to be developed. The ordinance establishing the PD District will not be approved until a Development Plan has been approved. Mr.Maples stated that staff has reviewed the proposed preliminary plat/development plan for Creekside Estates and found it to be in compliance with the concept plan approved by the Commission and Council. This preliminary plat/development plan also complies with the Subdivision regulations and other pertinent ordinances of the City of Wylie. He stated that the City's traffic consultant(Stanton Foerster)has reviewed the proposed development plan and is recommending approval. Please note the applicant is aware that their participation in the signalization of the FM 544/McCreary Road and McMillen/McCreary road intersections will be required at the time final plats are submitted. Mr. Maples stated that it should be noted that all issues associated with above ground storm water retention should be addressed at the time final plats are submitted for consideration and that it is the applicant's responsibility to provide detailed engineering studies verifying the integrity of the proposed system(The applicant has submitted a detailed Floodplain Hydrology&Hydraulics study). The City Engineer will be present to answer any questions the Council may have regarding the applicant's preliminary drainage and retention plans. The applicant is aware that a final plat must be approved prior to the issuance of any building permits. Mr.Maples stated that at the October 5, 1999,Planning and Zoning Commission meeting,the Commission voted unanimously to favorably recommend this case. There was some discussion regarding fencing and screening. Mr. Gary Defrain, Campbell Wylie Partners, addressed Council regarding these concerns. He was asked about gas service to the area,to which he responded that they are working with CoServe and their intent is to provide gas service. When asked about the school district boundary,he stated that he has not approached the PISD as of yet,but does intend to meet with them. Wylie City Council Minutes October 26,1999 Page 3 Councilman Swartz made a motion to approve the preliminary plat/development plan for the Creekside Estates Addition proposed by Gary Defrain for Campbell Wylie Partners, for the property generally located at the northeast corner of McCreary Road and McMillan Road and being all of a certain 296.441 acre tract out of the John W. Mitchell Survey, Abstract No. 589 and the Lewis M. Marshall Survey, Collin County, Texas. Councilman Swartz seconded the motion. A vote was taken and the motion passed, 6-0, Councilman Worley abstained. 5. Consider and act upon a final plat for Phase I of the Harvest Bend Addition proposed by Douphrate&Associates,Inc.,for the property generally located at the southwest corner of FM 2514(Ballard Street)and Dog Drop Road and being all of a certain 20.054 acre tract out of the W.D.Penny Survey,Abstract No.696,City of Wylie,Collin County,Texas. Mr. Tobin Maples addressed this item. Mr. Maples stated that the fmal plat under consideration is for Phase I of the proposed Harvest Bend subdivision. The applicant is final platting 20.054 acres of land in order to develop the property with single family residential uses. The property is currently vacant,unplatted, and zoned for SF-3 (Single Family Residential)uses. Mr. Maples stated that Staff has reviewed the proposed preliminary plat and found it to be in compliance with the Subdivision Regulations and other pertinent ordinances of the City of Wylie. He stated that Section 5.01C.(b)of the Subdivision Regulations states that where development phasing of the land prevents the provision of a second means of access,the city may accept a median divided street or divided entry to satisfy the requirement of two means of access or approach. The applicant is proposing a divided approach onto Ballard Street(70 right-of-way). Staff has reviewed the proposal and is recommending approval. Specifically,the applicant has stated that phase II will be under construction within the next year and,therefore, will provide secondary access around the same time homes are being occupied within phase I. Mr. Maples stated that the applicant is aware that all applicable issues and permits concerning development/access on the North Texas Municipal Water District Easement must be resolved prior to scheduling a fmal plat for hearing by the City Council(Staff will provide a letter from North Texas at the meeting). He stated that in an effort to provide some of the newly annexed areas along Parker Road sewer service,the applicant has agreed(at the applicant's expense)to build an off-site extension of their service along the south side of Parker Road west to the veterinary office. Said service will enable the properties along Parker Road to hook up to the sewer system at a later date. Mr. Maples stated that the applicant is aware that final water and sewer connections must be approved by the Consulting Engineer. Mr.Maples concluded that at the October 19, 1999,Planning and Zoning Commission meeting,the Commission voted unanimously to favorably recommend this case per the staff stipulations. There was some discussion regarding water and sewer provision,to which Mr. Maples stated that because of recent annexations,water and sewer would be accessible within 3-4 months. The Mayor requested that a letter be sent to all residents advising of water and sewer services. There was also discussion regarding builders,to which Mr.Maples stated that thus far,Plantation Homes was the only builder. Also discussed were street names and safety concerns. Wylie City Council Minutes October 26,1999 Page 4 Councilman Scott made a motion to approve the final plat for Phase I of the Harvest Bend Addition proposed by Douphrate&Associates,Inc.,for the property generally located at the southwest corner of FM 2514 (Ballard Street)and Dog Drop Road and being all of a certain 20.054 acre tract out of the W.D. Penny Survey,Abstract No.696,City of Wylie,Collin County,Texas. Councilwoman Allen seconded the motion. A vote was taken and the motion passed,7-0. 6. Consider and act upon approval of a resolution amending the current investment policy as required by the Texas Government Code, Chapter 2256, Public Fund Investment Act, Subchapter A-Authorized Investment for Governmental Entities. Finance Director, Mr. Brady Snellgrove addressed this item. Mr. Snellgrove provided Council with a brief background on the amendment to the current investment policy. He provided Council with explanation of the changes to the policy. Councilman Swartz made a motion to approve the resolution amending the current investment policy as required by the Texas Government Code, Chapter 2256, Public Fund Investment Act, Subchapter A - Authorized Investment for Governmental Entities. Councilman Worley seconded the motion. A vote was taken and the motion passed,7-0. 7. Hold a public hearing and consider and act upon an ordinance of the City of Wylie,affecting participation of City employees in the Texas Municipal Retirement System granting the additional rights authorized by Section 854.202(g) of Title 8,Texas Government Code, as amended,and prescribing the effective date for the ordinance. Finance Director, Brady Snellgrove addressed this item. Mr. Snellgrove provided Council with a brief explanation of the ordinance which will allow participating TMRS members twenty year retirement. He explained that if an employee has service with more than one entity,each will pay their share,the City of Wylie does not incur the entire cost. The Mayor then opened the Public Hearing and asked that anyone wishing to speak either in favor of or opposition to the proposed Ordinance to come forward,stating their name and address for the record and limiting their comments to three minutes. With no response,the Mayor then closed the public hearing. Councilman Scott made a motion to approve the ordinance of the City of Wylie, affecting participation of City employees in the Texas Municipal Retirement System granting the additional rights authorized by Section 854.202(g)of Title 8,Texas Government Code,as amended,and prescribing the effective date for the ordinance. Councilman Young seconded the motion. A vote was taken and the motion passed, 7-0. Staff Reports City Manager Mike Collins reported on the status of the Capital Projects Committee. He also reported that GTE has invited Council to look first hand at their wireless technology. A tour is scheduled tentatively for November 11 at the Tech Center at DFW. Mr. Collins asked that Council review their schedule and advise of a convenient time to schedule with GTE. The Mayor then asked that an Executive Session be scheduled for November or December,possibly at Sanden. Wylie City Council Minutes October 26,1999 Page 5 Work Session • Update on Animal Shelter Mr. Collins address this item prior to the Ranch Estates issues. Mr. Collins introduced the architects for the proposed Animal Shelter,Mr.Ed Rails and Mr. Kent Jones. Mr. Rails provided a visual design of the proposed facility and gave detailed explanation of the interior and exterior of the facility. His time frame is based on the bid process, slab and removing and restructure of the existing frame. His cost estimates for the structure not including driveways,was approximately$$90-100,000 and offered public parking for approximately$40,000. Total cost is estimated at$150,000. There was some discussion on the removal of the existing structure and moving to proposed location and possibility of using city forces to assist. Council agreed that bids should be prepared and directed staff to look into subcontracting the moving of the structure. • Presentation&Update from Chris Hoisted,City Engineer/Hogan Corporation regarding Drainage Issues/Wylie Ranch Estates. Mr. Chris Hoisted,Hogan Corporation was present to discuss drainage issues of the Wylie Ranch Estates area. Mr.Hoisted provided Council with a overhead cost projections for future work, as well as area map of areas of improvements and proposed areas of improvements. Homeowners are expressing concerns regarding standing water in the front area of their property; all improvements were made to the back of the property. There was considerable discussion on the work completed and options to resolve the current drainage issues still faced by homeowners. It was Mr. Hoisted's belief that improvements made were based on limited funds. Mr. Hoisted offered engineering services at no cost to the city to resolve this issue. He stated that costs to regrade and replace culverts would be approximately$101,400. It was agreed that a survey would need to be conduced so that staff could look at this issue and make recommendation to Council. Executive Session The Mayor then convened into Executive Session in accordance with Chapter 551,Government Code,Vernon's Texas Codes Annotated (Open Meeting Law). Section 551.071 Consultation with City Attorney, pending litigation; Lanny R. Payne v. City of Wylie, Texas, David Perkins,Nick Salisbury, Lt. Myrick, Officer Scott Stowers,a United States Federal Game Warden and B&B Backhoe,Inc. Reconvene into Open Meeting No action was taken as a result of Executive Session. Adjournment. With no further business to come before Council,the meeting was adjourned. John Mondy,Mayor Attest: Barbara A. Salinas,City Secretary Wylie City Council Minutes October 26,1999 Page 6 WYLIE CITY COUNCIL AGENDA ITEM NO. November 9, 1999 Issue Consider and act upon approval of a Holiday Closing Policy for the Smith Public Library. Background This policy will officially establish a holiday closing policy that has been informally used for the past several years by the Smith Public Library. Patron traffic and library usage drop significantly before holidays. December is the slowest month of the year for checkouts. The Library's circulation figures indicate that December has the lowest circulation. In December 1998, there were 4834 materials checked out which was the lowest circulation for the entire year. The average monthly circulation for fiscal year 1999 was 6,606. New Policy will establish the following schedule of closures: • The Saturday before Easter, Memorial Day, and Labor Day and July 4th when the holiday falls on a Friday or Monday; • The Saturday following the City's official Thanksgiving Holidays. • On Saturday before or following the City's official Christmas Holidays when those holidays fall at the beginning or at the end of the traditional workweek of Monday through Friday. The Library would close at 5:00 p.m. on • The Wednesday immediately before Thanksgiving Day. • The two days prior to the official City Holiday if they fall on the traditional workweek of Monday through Friday. Staff members,both full-time and part-time will not be paid for hours not worked. We will be creating opportunities to make-up hours by working on Saturdays and Wednesdays. These hours will be used for in house training or completion of special projects. Other Considerations N/A Financial Considerations N/A Board/Commission Recommendation The Library Advisory Board approved the policy on October 11, 1999. Staff Recommendation Staff recommends approval of the Holiday Closing Policy. Attachments None /r / / Prepay by Revie by Finance City Mana Approval NVYLIE CITY COUNCIL AGENDA ITEM NO. Ci November 9, 1999 Issue Discuss and Consider Approval adding specific language to the Rita and Truett Smith Public Library's Internet Use Policy. Background The Collin County Commissioners requested that three public/municipal libraries(McKinney, Melissa, and Wylie)within the county add specific language to their respective Internet Use Policies. The recommended language is as follows: "Any material that contains child pornography, obscene or other illegal activities(criminal offenses)are prohibited by Texas State and Federal Laws. Collin County Commissioners are requesting this additional language to ensure the city's existing policy adheres to Texas State and Federal Laws regarding pornography. If these changes are not legally adopted,the Commissioner's Court will withhold county funds from the City's library. Other Considerations The City Attorney reviewed the language that was added the Library's policy. Financial Considerations The Library will receive $10,000 in Collin County Funding during FY 2000. Board/Commission Recommendation The Board approved the revised policy on November 8, 1999. Staff Recommendation Staff recommends adoption of the revised policy. Attachments Revised Internet Policy. (Additions are in bold). v 1 , Z Pr red by R wed by Financ City Mana Approval f !)•I WYLIE CITY COUNCIL AGENDA ITEM NO. 0 November 9, 1999 Issue Consider and act upon final acceptance of the construction of parking lot paving improvements for the Wylie Municipal Service Center, Phase 2, and provide authorization for final payment to Morrow Construction in the amount of$11,831.40. Background Morrow Construction was awarded the contract for the construction of parking lot paving improvements for the Wylie Municipal Service Center, Phase 2, at the April 13, 1999 City Council Meeting. This project consisted of the construction of approximately 25,000 square feet of paved parking for heavy equipment and trucks and for storage of bulk aggregate materials. Construction began on June 4, 1999 and was substantially completed within the allotted contract time. A final walk through was conducted by City Staff and members of The Hogan Corporation. All work performed was in compliance with the plans and specifications and is acceptable to City Staff and the Engineer. Board Recommendations N/A Financial Considerations The contract to Morrow Construction for this project was$118,314.00. Previous payment to Morrow Construction was for$106,482.60. This payment in the amount of$11,831.40 represents retainage held on the contract. The total cost of the project including construction, engineering, testing and stiiping is$125,176.17. The project was funded by the Service Center Capital Project Fund. Other Considerations Acceptance will initiate the one-year warranty period in which the contractor is liable for any repairs which may be required in that time period. A provision in the contract provides that the warranty period begins on the date of final acceptance by the City. Staff Recommendations Staff recommends final acceptance of the project and final payment to Morrow Construction in the amount of$11,831.40. The contractor has satisfactorily fulfilled the terms of the contract. Attachments Recommendation letter from the Hogan Corporation Affidavit of Final Payment Consent of Surety Final Pay Estimate til1-407 -) /ILL- COtLA4-') - Prepared by Revie d by Finance City Manager Approval 10/28/99 07:50 FAX 972 380 4633 THE HOGAN CORPORATION 4 WYLIE-PRICE @1001 THE HOGAN CORPORATION Engineers • Planners • Consultants October,28, 1999 Mr.Mike Collins City Manager City of Wylie 2000 Hwy. 78 North Wylie,TX 75098 Attention: Lisa Price,Project Coordinator RE: Paving Improvements Wylie Municipal Service Center Phase 2 THCI 002-21 Dear Mr. Collins: We are submitting herewith for your review four(4)copies of Final Progress Estimate for the construction work completed by Morrow Construction for the period from June 30, 1999 through July 28, 1999,on the above referenced project. The items included in this month's pay request have been reviewed and found to conform with the work actually performed. This final pay request includes the $11,831.40 retainage held on the contract amount.. The Contractor has submitted a "Consent of Surety" from the bonding company as well as an "Affidavit of All Bills Paid." Copies of these documents are attached for your reference. Approval of the Final Pay Request and acceptance of the project will initiate the one year warranty period. With your approval of this Final Progress Estimate, please execute all copies,retain two(2)copies for your files, return one(1)copy to this office, and send one(1)copy to Morrow Construction, 104 Main St.,Lavon, TX 75166,along with your remittance in the amount of S 11,831.40. Yours very truly, THE HOGAN CORPORATION goiki . J. Chris Halsted, P.E. Enclosures Member, Consulting Engineers Council of Texas 18333 Preston Road, Suite 455 Member, American Consulting Engineers Council Dallas, Texas 75252 TEL: (972)380-4646 FAX: (972)380-4633 CONSENT OF OWNER 0 ARCHITECT H SURETY COMPANY OR TO FINAL PAYMENT SURETY 0 AIA DOCUMENT G707 OTHER 0 PROJECT: WYLIE MUNICIPAL SERVICE CENTER (NAME& WYLIE,TEXAS ADDRESS) ARCHITECTS PROJECT NO: TO(OWNER): CITY OF WYLIE ' 2000 HIGHWAY 78 NORTH,WYLIE,TEXAS 75098 CONTRACT FOR:PAVING IMPROVEMENTS- PHASE 2 THC#002-02 MORROW CONSTRUCTION COMPANY CONTRACT DATE: 104 MAIN STREET,LAVON,TEXAS 75166 CONTRACTOR: In accordance with the provisions of the contract between the Owner and the Contractor as Indicated above,the (here insert name and address of Surety Company) EVERGREEN NATIONAL INDEMNITY COMPANY P.O.BOX 18295,COLUMBUS,OHIO 43218 , SURETY COMPANY, on bond of(here insert name and address of Contractor) MORROW CONSTRUCTION COMPANY 104 MAIN STREET,LAVON,TEXAS 75166 ,CONTRACTOR, hereby approves of the final payment to the Contractor,and agrees that fmal payment to the Contractor shall not relieve the Surety Company of any of its obligations to(here insert name and address of owner) CITY OF WYLIE 2000 HIGHWAY 78 NORTH,WYLIE,TEXAS 75098 ,OWNER, as set forth in the said Surety Company's bond. IN WITNESS WHEREOF, the Surety Company has hereunto set its hand this 30TH day of SEPTEMBER , 1999 EVERGREEN NATIONAL INDEMNITY COMPANY Surety Company . 4,/ /J/ ` ' I n.„ d i C Signature of Authorized Representative Attest: (Seal): CHAD W.LAND Title ATTORNEY-IN-FACT NOTE: This form is to be used as a companion document to AIA DOCUMENT G706,CONTRACTOR'S AFFIDAVIT OF PAYMENT OF DEBTS AND CLAIMS,Current Edition AIA DOCUMENT G707-CONSENT OF SURETY COMPANY TO FINAL PAYMENT-APRIL 1970 EDITION-AIA©1970-THE AMERICAN INSTITUTE OF ARCHITECTS,1735 NEW YORK AVE.,NW,WASHINGTON,D.C.20006 EVERGREEN NATIONAL INDEMNITY COMPANY CLEVELAND,OHIO POWER OF ATTORNEY PRINCIPAL Morrow Construction Company EFFECTIVE DATE CONTRACT AMOUNT 118,314.00 AMOUNT OF BOND$ 118,314.00 POWER NO. 108489 KNOW ALL MEN BY THESE PRESENTS: That the Evergreen National Indemnity Company, a corporation in the State of Ohio does hereby nominate.constitute and appoint: Lanny W.Land,Chad W.Land,Camille Edwards&Gwenn J.Hall its true and lawful Attorney(s)-In-Fact to make,execute.attest.seal and deliver for and on its behalf,as Surety.and as its act and deed.where required. any and all bonds,undertakings.recognizances and written obligations in the nature thereof.PROVIDED.however.that the obligation of the Company under this Power of Attorney shall not exceed One Million Five Iiundred'fhousand Dollars($1.500.000.00). This Power of Attorney is granted and is signed by facsimile pursuant to the following Resolution adopted by its Board of Directors on the 23rd day of February, 1994: "RESOLVED,That any two officers of the Company shall have the authority to make.execute and deliver a Power of Attorney constituting as Attorneys)-in-fact of such persons,firms.or corporations as may be selected from time to time. FURTHER RESOLVED,that the signatures of such officers and the Seal of the Company may be affixed to any such Power of Attorney or any certificate relating thereto by facsimile: and any such Power of Attorney or certificate bearing such facsimile signatures or facsimile seal shall be valid and binding upon the Company;and any such powers so executed and certificate by facsimile signatures and facsimile seal shall be valid and binding upon the Company in the future with respect to any bond or undertaking to which it is attached."" IN WITNESS WHEREOF,the Evergreen National Indemnity Company has caused its corporate seal to be affixed hereunto,and these presents to be signed by its duly authorized officers this 23rd day of February. 1994. EVERG EN NATION DEMNITY COMPANY pNuunitlikk - sj C"". `• �'% raig L.Stout,President i ton ORArf AI -k: SEAL 1 _ / c L . ' 7� 19r fTr Roswell P.Ellis,Treasurer Notary Public) 1 State of Ohio) SS: On this 23rd day of February, 1994,before the subscriber,a Notary for the State of Ohio,duly commissioned and qualified,personally came Craig L. Stout and Roswell P.Ellis of the Evergreen National Indemnity Company,to me personally known to be the individuals and officers described herein,and who executed the preceding instrument and acknowledged the execution of the same and being by me duly sworn, deposed and said that they are the officers of said Company aforesaid,and that the seal affixed to the preceding instrument is the Corporate Seal of said Company, and the said Corporate Seal and signatures as officers were duly affixed and subscribed to the said instrument by the authority and direction of said Corporation, and that the resolution of said Company,referred to in the preceding instrument,is now in force. Rs!TESTIMONY WHEREOF,I have hereunto set my hand and affixed my official seal at Cleveland,Ohio,the day and year above written. /2 Attorney e ory N.Mirncle,C' otary Public State of Ohio >dr ? My Commission has no expiration date Section 147.03 R.C. *'t State of Ohio) SS: •_ '. ! ° :p ,p/ I.the undersigned,Secretary of the Evergreen Nationktal t�t Company, a stock corporation of the State of Ohio, DO HEREBY CERTIFY that the foregoing Power of Attorney remains in full force and has not been revoked;and furthermore that the Resolution of the Board of Directors, set forth herein above,is now in force. Signed and sealed in Cleveland,Ohio this 30TH day of , SEPTEMBER 1999 . \\\`tppaUllihpj/�i ••.•iJ% Anne Byers,Secreta P:c'w:oRPORAIE�-� =mot SEAL f,a. Any reproduction or facsimile of this form is void and invalid. CITY OF WYLIE PAYMENT AUTHORIZATION REQUEST 10/28/1999 Date Lisa Price From 11/12/1999 Due Date ❑ Return Check to Department Vendor No. Pay To: Morrow Construction P.O.Box 158 Lavon,Texas 75166 Invoice Invoice Fund Dept No Object SAC Amount Number Date (XXX) (XXX) (XXXXX) (XXXX) Final 10/28/99 451 851 58210 7801 $11,831.40 GRAND TOTAL 1183140 Explanation: Final Pay Estimate for construction work completed from June 30-July 28,1999 on the paving improvements at the Wylie Municipal Service Center parking lot. This project was accepted as complete at the 11/9/99 City Council Meeting,and the one-year maintenance period is activated on this date. Finance Dept. Department Head 10/28/99 07:50 FAX 972 380 4633 THE HOGAN CORPORATION 4 WYLIE—PRICE (a1002 Application for Final Payment Owner: City of Wylie For Period From: June 30,1999 To: July 28,1999 Project Name: Paving Improvements Wylie Municipal Service Center Pate 2 °emcee Project No.: Estincer's Project No.: 002-21 Contractor: Morrow Construction Address: Y.O.Box 15R Lawn,TX 7S166 CONTRACT AMOUNT CONTRACT TIME Part A Amount of Contract as Awarded; 4118,314.00 Contract Date: May 25,1999 gctngc Orders: Stag Date: June 4,1999 kl Time Allotted: 120 cal.day: 112 Time Extemiona: 0 calt,days d3 Refired Contract Time: 120 cal.days Elapsed: 54.00 cal.days Its %Time Elapsed: 45.00% a6 Remaining: GG caL days Total Change Orden: 50.00 Total A4jtrted Conn-act: S118,314.00 ESTIMATE SUMMARY Amount Completed to Date(See Attached); 3111,314.00 Material on Rend(See Attached): PROJECT TOTAL TO DATE: 100.00% 8118.314.00 Lon 0% Retairugc: S0.00 Len Previous Payments: 1106,482.60 Total Dedncbone: S1061402.60 (S106.412.60) TOTAL AMOUNT DUE MIS ESTIMATE: S11.831.40 Pecommen Approved: ii r By. av: Owe: Date: Engineer City of Wylie 09/1M1999 Page I filttl App fits Pay•Moms.' 10/28/99 07:51 FAX 972 380 4633 THE HOGAN CORPORATION 4 WYLIE-PRICE 12003 09/14/1999 1b:20 9728438222 MORROW CONST PAGE 02 Morrow Construction P.O.BOX 158 • LAVON,TEXAS 75166 • (972)843-3601 - (972)843-2681 - FAX(972)843-0222 **INVOICE** July 28, 1999 City of Wylie Wylie, Texas Rea Service Center Paving Improvements Pay Request ketainage --$ 11,831.40 Thank you, 4.k Will Morrow Morrow Construction WYLIE CITY COUNCIL AGENDA ITEM NO. I November 9, 1999 Issues Hold the first 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 r� (6Q Prepar by R ed by Finan City Manager Approval LAFAYETTE PROPERTIES, INC. 8235 DOUGLAS AVENUE, SUITE 650, LB-65 DALLAS, TEXAS 75225 ,' TELEPHONE 214 691.2556 FACSmLtE 214 691-0682 t DATE: -4 tv.,,, FROM: GARY DEFRAIN To:ig. LAFAYETTE PROPERTIES, INC. COMPANY:eirri of ,,I PHONE: (214) 691-2556 PHONE: FAX: (214)691-0682 FAX: gie•44•Z•1444, PAGES To FOLLOW: e g6•• 'VII prvou iaa figuibmer REMARKS: iciot k topyme er, ire ott - - ' 14.10 . itb t%ft. 4 eri z . 1111111014 ,... • U" 4014MiknOth -Amit awn0244 ..- , _: : . . ,.. . 4401604 0 l , 041 _ mot . ►.. 8. TY NOTI E THE DOCU,t ACC O,MMP,NYING TT.S ELECOPY TRANSN ISSION CONTAIN CONFEDENTIAL INFORMATION WHICH IS LEG'LLY PRIVILEGED AND INTENDED ONLY FOR THE USE OF THE RECIPIENT NAMED ABOVE. IF YOU RECEIVE THIS TELECOPY IN ERROR.PLEASE IVIMIEDIATELY NOTIFY US BY TELEPHONE OR ARRANGE FOR RETURN OF THE TRANSMITTED DOCUMENTS TO us. You ARE HEREBY NOTIFIED THAT ANY DISCLOS'.:P.E,COPYING,DISTRIIILTION OR THE TAKING OF ANY ACTION IN RELI.aNCE ON THE CONTENTS OF THIS TELECOPIED INFORMATION IS STRICTLY PROIII(1 TED. W\userstF.LscV•rslgene:at 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) acre 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.O. 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) acre tract of land known as Southfork Mobile Home Park conveyed to Clayton/Combridg. 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 roilroad spike found at the intersection of said centerline of old McMillan Rood, with the centerline of McCreary Road, bears North 89' 33' 04" West, o distance of i 818.08 feet; THENCE North 00' 40' 50" East, along the meanders of on old wire fence and the north line of said Donihoo tract, at a distance of 20 feet passing the north line of said old McMilton 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 land conveyed to William E. Campbell, Jr., Trustee — McCreary Rood 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 -at the northeast corner of said Lewis (5.00) acre tract and a interior corner of said Campbell • (113.407) acre tract; THENCE South 00" 40' 50" West, at a distance of 812.3 feet passing on iron pipe found at a corner fence post, of a distance of 817.60 feet passing a 1/2" iron rod found in the north line of aforesaid prescriptive easement of old McMillon Rood, and continuing on o total distance of 837.60 feet to a 5/8" iron rod found for corner at the southeast corner of said Lewis (5.00) acre tract and the common southerly southwest corner of soid Campbell (113.407) acre tract, same being in the centerline of soid old McMillan Road, 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 McMillan Rood, and the centerline of a 40 foot prescriptive rood easement, North 89' 41' 40" West, a distance 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 l,4cf,4ilian Road, and the south line of said 20 foot prescriptive rood 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 soid 20 foot prescriptive rood easement, for a NET AREA OF 4.9455 ACRES OF LAND, more or less. I Li. t ._.. 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 16Ih day of August, 1999. APPROVED: 1 Roy W. Benue yor ATTEST: Linda B. Marley, arty Secfbtary I ! I1 Y r { � I i- i --- 1 PARKER CITY L MITq I - .. SUBJECT __I PROPERTY , . 1. 1 - .. . . ,• , N v • • El / •: - f! -46 McMillen Rd >, Aj-1 i 0 =/1111U/11l .,.121f i L Cop111Ut1I L �_,C=e�� ! V =_nln /ila atr_:_4"►Il ; ; n :llllliuIL 1 I _,��C� ►It1I1 li1111i11D i:s 1e= ;�-----j--j--- .. ---vm- -How �--�— ' 1 I p�� .=__ 1111111{� �1..� . 1 s� �= �� mitt '1�/t/ �������� ���`,,��11�� i L �,�/•/ •� �IIIIi11 ! (? • .. �..�1:z• O �11111111I/ I Cis-: : =cv1 /I�/`. _ram III 1111111111 r1' Altai 1111t11I1\ ________T-----L------ --___ZL i 1 i j (__.1 1 i 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:Annex.ltr AGENDA COMMUNICATION Date Received by City Manager: REQUEST FORM for the Council Meeting of 11-9-99 CONSENT/ACTION ITEM ORIGINATING DEPARTMENT: Dev. Serv. Submitted by: Financial Considerations Other Considerations Tobin Prepared by: Prepared by: Tobin Tobin Reviewed by: Reviewed by: Date: Date: Date: 10-29-99 Agenda Communication Request Forms must have the appropriate signatures for both Financial and Legal considerations before submission to the City Manager. Requests must be received by the City Manager's office no later than 5:00 p.m. on the Friday ten days prior to the Council Meeting. ISSUE: Hold the first 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. ATTACHMENTS: COMMENTS: Attachments to be included as support for this agenda item are attached and listed below. Applicant's letter Exhibit "A" legal description City limits boundaries map Service Plan Resolution Issues: Hold the first 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 Department of Planning, 10/29/99 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 Prepared by Reviewed by Finance City Manager Approval Department of Planning, 10/29/99 WYLIE CITY COUNCIL AGENDA ITEM NO. 9--4 November 9 , 1999 Issue: Consider and act upon approval of an Ordinance establishing a cross connection program for the purpose of protecting its drinking water supply from contamination and/or pollution due to any cross connections. Background: Texas Natural Resource Conservation Commission(T.N.R.C.C.) requires that all water system develop and enforce a cross connection control program. Backflow Management Inc. (BMI) is a complete consulting company offering cross connection control services, training and educational products for drinking water, backflow and cross connection professionals. They offer services for all areas of cross connection control from ordinance writing and inspection to total program management. BMI Educational Division provides certification and training in backflow testing, inspections, confined space entry and backflow assembly repair. They include many training manuals, comprehensive backflow assembly repair manual and BMI Cross Track, their new cross connection control management software program. BMI staff has more than fifty years of combined experience in the drinking water and cross connection control industry. It is their goal to use this experience to help the water purveyor and professional in all areas of water management. If approved by the City Council, this would make the city compliant with TNRCC rules and regulations. They will give a Customer Service Inspection certification program to city employees (Public Works, Code Departments) containing a 32-hour cross connection, inspection/surveyor courses. BMI will provide a 40-hour Backflow Assembly Tester Certification course. A Customer Service Inspections courses which is a 10-hour course that TNRCC has required. They will provide sixteen hours of field training for Commercial/Industrial Service connections. At this time once schooling is complete, we will implement the program on all new construction unless any residential property that we have determined that had an actual or potential cross connection and/or has violated the Plumbing Code in any way shall be required to install an approved Backflow Prevention Assembly according to this ordinance. We have approximately 4178 residents and 321 commercial customers at this time. Financial Considerations The cost and expense of complying with this Ordinance shall be the sole responsibility of the property owner and/or lessee. These costs and expenses include, but are not limited to purchasing, installation, testing and/or repair of the assembly. These costs and expenses shall also include, but are not limited to, point-of-use and premises isolation assemblies. The property owner and/or lessee shall reimburse Wylie for any and all costs and expenses incurred by Wylie in enforcing this Ordinance (the "reimbursement costs"). The reimbursement costs shall be assessed in the property owner's and/or lessee's current water bill and collected in accordance with Wylie's current procedures or as amended. The goal of this ordinance is for the City of Wylie to dedicate safe, clean drinking water through education, products, service and training. Other Considerations Pursuant to Title 30, Texas Administrative Code, Sections 290.44 and 290.46, or as amended, it is the responsibility of Wylie to protect its drinking water supply by instituting and enforcing a cross connec- tion program. The purpose of this Ordinance, is to comply with the above-cited regulatory requirements and to protect the water supply of Wylie from contamination or pollution due to any cross connections. The City Attorney has drafted and reviewed proposed ordinance for Council's consideration. Board and Commission Recommendations N/A Attachments Ordinance repared by Review y Finance City 4lrLi CITY OF WYLIE, TEXAS ORDINANCE NO. AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, ESTABLISHING A CROSS CONNECTION PROGRAM FOR THE PURPOSE OF PROTECTING ITS DRINKING WATER SUPPLY FROM CONTAMINATION AND/OR POLLUTION DUE TO ANY CROSS CONNECTIONS;PROVIDING FOR SEVERABILITY, SAVINGS AND PENALTY CLAUSES; PROVIDING FOR AN EFFECTIVE DATE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF. WHEREAS, the City Council of the City of Wylie, Texas ("Wylie") has investigated and determined that it would be in the best interest of Wylie and its inhabitants to establish and enforce a cross connection program for the purpose of protecting its drinking water supply from contamination and/or pollution due to any cross connections; and WHEREAS, it is the desire, purpose and intent of Wylie to comply with the regulatory requirements applicable to the establishment of a cross connection program. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION l: FINDINGS INCORPORATED. 1.1 The findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2: DEFINITIONS. 2.1 For purposes of this Ordinance, the following definitions shall apply unless the context clearly indicates or requires a different meaning. If a word or term used in this Ordinance is not contained in the following list, its definition, or other technical terms used, shall have the meanings or definitions listed in the most recent edition of the Manual of Cross Connection Control published by the Foundation for Cross Connection Control and Hydraulic Research, University of Southern California ("USC"). ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 1 hc\I:mbox4\wylie\cross connection.ordll0-20-99 "Approved backflow prevention assembly" or "backflow assembly" or"assembly" means an assembly to counteract backpressures or prevent backsiphonage. This assembly must appear on the list of approved assemblies issued by USC Foundation for Cross-Connection Control and Hydraulic Research. "Auxiliary supply" means any water source or system other than the public water system, that may be available in the building or on the property. "Backflow" means the flow in the direction opposite to the normal flow or the introduction of any foreign liquids, gases, or substances into the water system of the City's water. "Backflow prevention assembly tester" shall mean a person who has met all of the requirements of TNRCC to be recognized as a certified tester in the state of Texas and is registered with the City. A certified tester who is employed by a state approved fireline contractor shall test fireline assemblies. "Boresight" or"boresight to daylight" means providing adequate drainage for backflow prevention assemblies installed in vaults through the use of an unobstructed drain pipe. "City" means the City of Wylie, Texas. "City Manager" means the City Manager of the City of Wylie, Texas or his/her designee. "Combination protection" means there is an assembly installed for point of use isolation in addition to a premises isolation assembly. "Contamination" means the entry into or presence in a public water supply system of any substance which may be deleterious to health and/or the quality of the water. "Cross connection" means any physical arrangement where a potable water supply is connected, directly or indirectly(actual or potential), with any other non-potable water system, ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 2 hc\I:mboa4\wylie\cross connection.ord/10-20-99 used water system or auxiliary water supply, sewer, drain conduit, swimming pool, storage reservoir, plumbing fixture, swamp coolers, air conditioner units, fire protection system, or any other assembly which contains, or may contain, contaminated water, sewage, or other liquid of unknown or unsafe quality which may be capable of imparting contamination to the public water system as a result of backflow. Bypass arrangements,jumper connections, removable sections, swivel or change over assemblies, or other temporary or permanent assemblies through which, or because of which, backflow may occur are considered to be cross connections. "Customer Service Inspector" or "CSI" is an individual who has fulfilled the requirements set out in the TNRCC Rules and Regulations for Public Water Systems, paragraph 290.46(j)(1), or as amended. "Degree of hazard" means the low or high hazard classification that shall be attached to all actual or potential cross connections. "Double check detector assembly" or "DCDA" means an approved assembly consisting of two approved double check valve assemblies, set in parallel, equipt with a meter on the bypass line to detect small amounts of water leakage or use. This unit must be purchased as a complete assembly. The assembly may be allowed on fire line water services in place of an approved double check valve assembly upon approval by the local water authority. "Double check valve backflow prevention assembly" or "double check assembly" or "double check" or "DC assembly" or "DC" means an assembly which consists of two (2) independently operating check valves which are spring-loaded or weighted. The assembly comes complete with a gate valve on each side of the checks, as well as test cocks to test the checks for tightness. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 3 hc\I:mbox4\wyfle\cross connection.ord/10-20-99 "Health hazard" means an actual or potential threat of contamination of a physical or toxic nature to the public potable water system or the consumer's potable water system that would be a danger to health. "High hazard" means the classification assigned to an actual or potential cross connection that potentially could allow a substance that may cause illness or death to backflow into the potable water supply. "Inspector" means a person who is a certified inspector recognized by the City of Wylie, Texas. "Low hazard" means the classification assigned to an actual or potential cross connection that potentially could allow a substance that may be objectionable, but not hazardous to one's health, to backflow into the potable water supply. "Mobile units" shall mean any operation which may have the potential to introduce contaminants into a potable water system from a mobile source. These include, but are not limited to, carpet-cleaning vehicles, water-hauling vehicles, street-cleaning vehicles, liquid-waste vehicles, power-wash operations and pest-control vehicles. "Person" means a natural person (individual), corporate, company, association, partnership, firm, limited liability company,joint venture joint stock company or association, and other such entity. "Plumbing hazard" means an internal or plumbing-type cross connection in a consumer's potable water system than may be either a pollutional or a contamination type hazard. "Point-of-use isolation" means the appropriate backflow prevention within the consumer's water system at the point at which the actual or potential cross connection exists. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 4 he\I:mboa4\wylie\cross connection.ord/10-20-99 "Pollutional hazard" means an actual or potential threat to the physical properties of the water system or the potability of the public's or the consumer's potable water system but which would not constitute a health or system hazard, as defined. The maximum degree of intensity of pollution to which the potable water system could be degraded under this definition would cause a nuisance or be aesthetically objectionable or could cause minor damage to the system or its appurtenances. "Potable water supply" means any water supply intended or used for human consumption or other domestic use. "Premises" means any piece of property to which water is provided, including, but not limited to, all improvements, mobile structures, and structures located on it. "Premises isolation or containment protection" means the appropriate backflow prevention at the service connection between the public water system and the water user. "Public water system" or "system" means any public or privately owned water system which supplies water for public domestic use. The system must meet all the health requirements set forth by the TNRCC. The system will include all services, reservoirs, facilities, and any equipment use in the process of producing, treating, storing or conveying water for public consumption. "Reduced pressure detector check assembly" or "RPDC" shall mean an approved assembly consisting of two approved reduced pressure backflow assemblies, set in parallel, equipped with a meter on the bypass line to detect small amounts of water leakage or use. This unit must be purchased as a complete assembly. The assembly may be allowed on fire line water services in place of an approved reduced pressure backflow assembly upon approval by the local water purveyor. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 5 hc\I:mbox4\wylie\cross connectionord/10-20-99 "Reduced pressure principle backflow prevention assembly" or"reduced pressure principle assembly" or"RP assembly" or "RP" shall mean an assembly containing two (2) independently acting approved check valves together with an hydraulically-operated, mechanically independent pressure differential relief valve located between the check valves and at the same time below the first check valve. The assembly shall include properly located test cocks and tightly closing shut-off valves at each end of the assembly. "Residential use" shall include, but is not limited to, single family dwellings, duplexes, multiplex housing and apartments where the individual units are each on a separate meter; or, in cases where two (2) or more units are served by one (1) meter. "Non-residential use" shall include, but is not limited to, all uses not specifically included in"residential uses" defined above. "Service connection" is the point of delivery at which the public water system connects to the private supply line or lateral. "SOP" standard operating procedure manual. "Spill resistant vacuum breaker" shall mean an assembly containing an independently operating internally loaded check valve and independently operating loaded air inlet valve located on the discharge side of the check valve. The assembly is to be equipped with a properly located resilient seated test cock, a properly located bleed/vent valve, and tightly closing resilient seated shutoff valves attached at each end of the assembly. This assembly is designed to protect against a non-health hazard (i.e., pollutant) or a health hazard (i.e., contaminant)under a backsiphonage condition only. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 6 hc\I:mbox4\wylie\cross connection.ord/10-20-99 "System hazard" means an actual or potential threat of severe danger to the physical properties of the public's or consumer's potable water supply or of a pollution or contamination that would have a detrimental effect on the quality of the potable water in the system. "Thermal expansion" means heated water that does not have the space to expand. "TNRCC" means the Texas Natural Resource Conservation Commission. "Used water" means water supplied by a public water system to a water user's system after it has passed through the service connection. "Wylie" means the City of Wylie, Texas. SECTION 3: PURPOSE. 3.1 Pursuant to Title 30, Texas Administrative Code, Sections 290.44 and 290.46, or as amended, it is the responsibility of Wylie to protect its drinking water supply by instituting and enforcing a cross connection program. The purpose of this Ordinance, is to comply with the above-cited regulatory requirements and to protect the water supply of Wylie from contamination or pollution due to any cross connections. SECTION 4: BACKFLOW PREVENTION ASSEMBLY REQUIREMENTS. 4.1 A certified cross connection Inspector employed by or under contract with Wylie shall determine the type and location of backflow assembly to be installed within Wylie's water service area. The assembly shall be required in each of the following circumstances, but the Inspector is in no way limited to the following circumstances: 4.2 When the nature and extent of any activity at a premises, or the materials used in connection with any activity at a premises, or materials stored at a premises, could contaminate or pollute the potable water supply. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 7 hc\I:mbox4\wylie\cross connectionord/10-20-99 4.3 When a premises has one (1) or more cross connections as that term is defined in Section 2. 4.4 When internal cross connections are present that are not correctable. 4.5 When intricate plumbing arrangements are present that make it impractical to ascertain whether cross connections exist. 4.6 When the premises has a repeated history of cross connections being established or re-established. 4.7 When entry to the premises is restricted so that inspections for cross connections cannot be made with sufficient frequency to assure that cross connections do not exist. 4.8 When materials are being used such that, if backflow should occur, a health hazard could result. 4.9 When installation of an approved backflow prevention assembly is deemed by an Inspector to be necessary to accomplish the purpose of these regulations. 4.10 When an appropriate cross connection survey report form has not been filed with the City Manager. 4.11 In all new nonresidential construction, there shall be installed an approved backflow assembly at the service connection. The type of the assembly will be commensurate with the degree of hazard as determined by an Inspector. 4.12 When a building is constructed on commercial premises, and the end use of such building is not determined or could change, a reduced pressure principle backflow prevention assembly shall be installed at the service connection to provide protection of the public water supply in the event of the most hazardous use of the building. 4.13 Any used water return system that has received approval from the City Manager. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 8 hc\l:mbox4\wyle\cross connectionord110-20-99 4.14 If a point-of-use assembly has not been tested or repaired as required by this Ordinance, the installation of a reduced pressure principle assembly will be required at the service connection. 4.15 If an Inspector determines that additions or rearrangements have been made to the plumbing system without the proper permits as required by the plumbing code adopted by Wylie (the"Plumbing Code"), premises isolation shall be required. 4.16 All non residential multi-story buildings or any building with a booster pump or elevated storage tank. 4.17 Retrofitting shall be required on all high hazard connections and wherever else the City Manager deems retrofitting necessary. 4.18 All lawn irrigation systems shall be protected with an RP assembly. SECTION 5: MOBILE UNITS. 5.1 A person who owns and/or operates any vehicle that uses water from Wylie's public water system shall obtain a use permit from the City Manager before accessing the public water system. The City Manager may require a fixed air gap or a backflow assembly commen- surate with the degree of hazard mounted either on the vehicle or piping. 5.2 The failure of the owner and/or operator of the vehicle to comply with this Ordinance shall be grounds for Wylie to revoke any permit and/or license required under Wylie's Code of Ordinances, or as amended, to operate the vehicle and/or the business for which such vehicle is used. 5.3 The City Manager may deny a permit to any person who is not in compliance with this Ordinance and/or who has a history of violating the requirements of this Section. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 9 hc\I:mboa4\wyiie\cross connection.ord/10-20-99 5.4 All assemblies used to protect the water supply when using a mobile unit must abide by the maintenance and testing sections of this Ordinance. 5.5 If there is a conflict between this section of the Ordinance and Wylie's Code of Ordinances, or as amended, the more restrictive provision shall apply. SECTION 6: MULTIPLE SERVICE CONNECTIONS. 6.1 If premises with multiple service connections require premises isolation, a backflow assembly shall be installed at each service connection. The assemblies shall be commensurate with the degree of the highest potential hazard and shall be the same model. SECTION 7: PLUMBING CODE. 7.1 As a condition of water service, customers shall install, maintain, and operate their piping and plumbing systems in accordance with the Plumbing Code, or as amended. If there is a conflict between this Ordinance and the Plumbing Code, or as amended, the more restrictive provision shall apply. SECTION 8: THERMAL EXPANSION. 8.1 It is the responsibility of the property owner and/or lessee to eliminate the possibility of thermal expansion, if a closed system has been created by the installation of a backflow assembly. SECTION 9: PRESSURE LOSS. 9.1 Any water pressure drop caused by the installation of a backflow assembly shall not be the responsibility of Wylie. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 10 hc\1:mboa4\wylie\cross connection.ord/10-20-99 SECTION 10: RESIDENTIAL SERVICE CONNECTIONS. 10.1 Any residential property which has been determined to have an actual or potential cross connection and/or has violated the Plumbing Code in any way, shall be required to install an approved backflow prevention assembly installed in accordance with this Ordinance. SECTION 11: FIRE SYSTEMS. 11.1 An approved double check detector backflow prevention assembly("DCDA") shall be the minimum protection on all new fire sprinkler systems using piping material that is not approved for potable water use and/or that does not provide for periodic flow-through during each twenty-four(24) hour period. A reduced pressure principle detector backflow prevention assembly ("RPDA") must be installed if any solution other than the potable water can be introduced into the sprinkler system. Retrofitting on fire sprinkler systems will be required in each of the following circumstances: a. where improper maintenance has occurred; b. on all high hazard systems; and c. wherever an Inspector deems necessary. SECTION 12: CUSTOMER SERVICE INSPECTION. 12.1 Pursuant to the TNRCC Water System Regulations, a customer service inspection for cross connection control shall be completed by Wylie prior to providing continuous water service in each of the following circumstances: a. to a newly constructed facility or previously existing premises; b. after any material improvement to building(s) or premises; c. any correction or addition to the plumbing of any facility or premises served by the public water system of Wylie; and ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 11 hc\t:mboa4\wylie\cross connectionord/10-20-99 d. whenever the TNRCC deems it necessary. 12.2 Permanent water service shall not be supplied to a new construction facility(s)until the customer service inspection is completed. SECTION 13: CERTIFICATION OF CROSS CONNECTION INSPECTORS. 13.1 Inspectors performing cross connection control duties within the City of Wylie must be approved by the City Manager and shall meet the following requirements: a. be employed by or be an independent contractor for Wylie; and b. meet the requirements set out in Wylie's SOP, or as amended. SECTION 14: CERTIFICATION OF BACKFLOW PREVENTION ASSEMBLY TESTERS. 14.1 All backflow assembly testers operating within Wylie shall be certified in accordance with all applicable regulations of the TNRCC. No person shall operate as a backflow prevention assembly tester within Wylie without first being annually registered with the City Manager. 14.2 At the time of registration, recertification, and/or upon the City Manager's request, each person certified as a backflow prevention assembly tester shall furnish evidence to show that he/she is insured and bonded to perform services on private property and has current licenses as required by the State of Texas and Wylie to perform the contemplated services. 14.3 Persons certified as backflow prevention assembly testers shall meet the following requirements: a. hold a TNRCC approved backflow prevention assembly certification; b. receive confined-space entry training certification; ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 12 hc\I:mbox4\wylie\cross connection.ord/10-20-99 c. agree to abide by all requirements of the United States Occupational Safety and Health Administration ("OSHA"); and d. maintain general commercial liability insurance and automobile liability insurance with the following minimum limits per policy: $ 300,000.00 per person and $ 500,000.00 per accident for bodily injury and $ 100,000.00 per accident for property damage, or $ 500,000.00 if combined. SECTION 15: CERTIFIED BACKFLOW PREVENTION ASSEMBLY TESTER RESPONSIBILITIES. 15.1 No certified backflow assembly tester shall operate within Wylie without first registering with the City Manager. 15.2 A registration shall remain in effect provided: a. the backflow prevention assembly tester maintains eligibility for registration and certification as defined in this Ordinance; b. the backflow prevention assembly tester attends and successfully completes a recertification training course, approved by the City Manager, every year; and c. the backflow prevention assembly tester's registration is not revoked by the City Manager. 15.3 Upon recertification, a backflow prevention assembly tester shall renew his/her registration with the City Manager. If a certification remains expired for a period of one (1)year, the backflow prevention assembly tester may re-establish registration eligibility by showing proof that he/she has retaken a TNRCC approved backflow prevention tester certification course. 15.4 Each applicant for registration shall: a. provide evidence to the City Manager to establish that the applicant has available the necessary tools and equipment to properly test backflow prevention assemblies; b. provide evidence to the City Manager that the applicant has successfully completed"Permit Confined-Space Entry Training" as specified by OSHA in 29 CFR 1910.146, or as amended; and ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 13 hc\1:mbox4\wylie\cross connection.ord/10-20-99 c. identify all test gauges the applicant will use in testing backflow prevention assemblies. 15.5 A registered backflow prevention assembly tester shall: a. file the serial number(s) of each of his/her test kits with the City Manager; b. annually have each recorded test kit tested for accuracy and calibrated to maintain a two percent (2%) accuracy factor; c. perform competent and accurate certifications, as determined by the City Manager, of each backflow prevention assembly tested and shall submit complete reports thereof to the City Manager; d. list registered serial numbers of test gauges on tests and maintenance reports prior to submitting them to the City Manager; and e. not change the design and/or operation characteristics of a backflow prevention assembly. 15.6 The City Manager may revoke a registration if the City Manager determines that the backflow prevention assembly tester: a. has made false, incomplete, or inaccurate assembly testing reports; b. has used inaccurate gauges; c. has used improper testing procedures; d. has expired insurance; e. is not in compliance with safety regulations; f. has failed to register the serial numbers of his/her test kits and/or failed to calibrate gauges annually as required by subsection 15.5 above; g. has used an inappropriate certification number; h. has allowed someone to use their certification number; and/or i. has violated any provision of this Ordinance; ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 14 he\l:mbox4\wylie\cross connection.ord/10-20-99 15.7 The backflow prevention assembly tester will receive a notice of revocation and will be given notice of a hearing date before a board appointed by the City Manager. SECTION 16: COST AND EXPENSE OF COMPLIANCE. 16.1 The cost and expense of complying with this Ordinance shall be the sole responsibility of the property owner and/or lessee. These costs and expenses include, but are not limited to purchasing, installation, testing and/or repair of the assembly. These costs and expenses shall also include, but are not limited to, point-of-use and premises isolation assemblies. The property owner and/or lessee shall reimburse Wylie for any and all costs and expenses incurred by Wylie in enforcing this Ordinance (the"reimbursement costs"). The reimbursement costs shall be assessed in the property owner's and/or lessee's current water bill and collected in accordance with Wylie's current procedures, or as amended. SECTION 17: TESTING OF ASSEMBLIES. 17.1 The City Manager will inspect and test, or cause to be inspected and tested, all assemblies in each of the following circumstances: a. immediately after installation; b. a minimum of once a year; c. immediately after repair; d. any premises that has RP assemblies as point-of-use protection without any isolation protection must be tested every six(6) months; and e. whenever the assembly is relocated. 17.2 Assemblies may be required to be tested more frequently if the City Manager deems necessary. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 15 hc\l:mbox4\wylie\cross connection.ord/10-20-99 17.3 All assembly testing shall be performed by a certified and registered backflow prevention assembly tester, in accordance with the TNRCC-approved test procedures. 17.4 It is the responsibility of the property owner and/or lessee to have all assemblies tested in accordance with this Ordinance. 17.5 Wylie shall not be liable for any damage to an assembly that occurs during testing. SECTION 18: MAINTENANCE OF ASSEMBLIES. 18.1 A person who owns, operates, and/or manages premises in which required backflow prevention assemblies are installed, shall maintain such assemblies in proper working order at all times, including repair as required. All maintenance and repair of assemblies shall be done in accordance with all applicable regulations of the TNRCC and this Ordinance. 18.2 Backflow prevention assemblies shall be maintained in a manner that allows them to be tested by a method that has been approved by the TNRCC. SECTION 19: INSTALLATION REQUIREMENTS. 19.1 Backflow prevention assemblies shall be installed in accordance with the following requirements to ensure their proper operation and/or accessibility: a. Backflow prevention assemblies shall be installed in accordance with this Ordinance and all Plumbing Codes recognized by Wylie. The assembly installer shall obtain the required plumbing permits prior to installation and shall have the assembly inspected by an Inspector and as required by the Plumbing Code. b. No part of a reduced pressure principle backflow prevention assembly shall be submerged in water or installed in a location subject to flooding. If a double check valve assembly is installed in a vault, brass plugs shall be maintained in the test ports at all times and adequate drainage shall be provided. c. Assemblies shall be installed at the point of delivery of the water supply, before any branch in the line, and on private property located just inside the boundary of the Wylie's right-of-way and/or at the point of the cross ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 16 hc\I:mboa4\wylie\cross connectionord/10-20-99 connection. The Inspector will specify the area for installation of the assembly. d. The assembly shall be protected from freezing and other severe weather conditions. e. All backflow prevention assemblies shall be of a type and model approved by the City Manager. f. All vertical installations shall be approved in writing by the City Manager prior to installation. g. The assembly shall be readily accessible with adequate room for maintenance and testing. h. If the City Manager grants written permission to install the backflow assembly inside of a building, the assembly shall be readily accessible at all times. i. If an assembly is installed five (5) feet or higher above the floor, it shall be equipped with a rigidly and permanently installed scaffolding acceptable to the City Manager. This installation shall also meet all applicable requirements set out by OSHA and the State of Texas occupational safety and health laws. j. The property owner and/or lessee shall register all backflow assemblies with the City Manager. Registration shall consist of date of installation, manufacturer, model, serial number of the backflow prevention assembly, and initial test report. k. Assemblies installed more than five (5)feet above floor level shall have a suitable platform for use by testing or maintenance personnel. 1. Lines shall be thoroughly flushed prior to installation. A strainer with blowout tapping may be required ahead of the assembly. m. The property owner and/or lessee assumes all responsibility for leaks and/or damage caused, directly or indirectly, by the assembly. The property owner and/or lessee shall also ensure that any vault is kept reasonably free of silt and debris. n. Any enclosures used to protect assemblies will be one that appears on the American Society of Sanitary Engineers ("ASSE") approved list. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 17 hc\l:mboa4\wylie\cross connection.ord/10-20-99 o. Installations will follow the procedures set out in the Wiley SOP, or as amended. SECTION 20: REDUCED PRESSURE PRINCIPLE BACKFLOW PREVENTION ASSEMBLY ("RP"). 20.1 All RP assemblies will be tested in each of the following circumstances: a. immediately upon installation; b. after repair; c. if it is relocated; d. at least annually; and e. more often if deemed necessary by the City Manager. 20.2 RPs shall be utilized at premises where a substance is handled that would be hazardous to the public health if introduced into the potable water system. An RP is normally used in locations where an air gap is impractical. An RP is effective against both backsiphonage and backpressure. 20.3 RPs shall be sized to provide an adequate supply of water and pressure for the premises being served. 20.4 Premises where non-interruption of water supply is critical shall be provided with two (2) assemblies of the same type installed in parallel. They shall be sized in such a manner that either assembly will provide the minimum water requirements while the two (2)together will provide the maximum water requirements. 20.5 Bypass lines are prohibited. Pipe fittings which could be used for connecting a bypass line shall not be installed. 20.6 The assembly shall be readily accessible for testing and/or maintenance and shall be located in an area where water damage to buildings and/or furnishings will not occur from relief ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 18 hc\I:mbox4\wylie\cross connection.ord/10-20-99 valve discharge. An approved air gap funnel assembly may be used to direct minor discharges away from the assembly; this assembly will not control flow in a continuous relief situation. Drain lines will need to accommodate full relief valve discharge flow. 20.7 Enclosures shall be designed for ready access and sized to allow for the minimum clearances established below. Daylight drain ports shall be provided to accommodate full pressure discharge from the assembly. 20.8 All assemblies larger than two (2) inches shall have a minimum of twelve (12) inches on the back side, twenty-four (24) inches on the test cock side, and the relief valve opening shall be at least twelve (12) inches plus nominal size of assembly above the floor or highest possible water level. Headroom of six(6) feet is required in vaults without a fully removable top. A minimum access opening of twenty-four(24) inches square is required on all vault lids. All assemblies two (2) inches and smaller shall have at least a six(6) inch clearance on all sides. 20.9 All RP assemblies shall be tested in accordance with this Ordinance. 20.10 Deviations from these specifications will be evaluated on a case-by-case basis by the City Manager. Any deviations shall be prohibited without prior written approval of the City Manager. 20.11 RP assemblies may be installed in a vault only if relief valve discharge can be drained to daylight through a boresight type drain. The drain shall be of adequate capacity to carry the full rated flow of the assembly and shall be screened on both ends. 20.12 An approved air gap shall be located at the relief valve orifice of RP assemblies. This air gap shall be at least twice the inside diameter of the incoming supply line as measured vertically above the top rim of the drain and in no case less than one (1) inch. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 19 hc\:mboa4\wylie\cross connection.ord/10-20-99 SECTION 21: DOUBLE CHECK VALVE BACKFLOW PREVENTION ASSEMBLY ("DC"). 21.1 All DC assemblies will be tested in each of the following circumstances: a. immediately upon installation; b. after repair; c. if it is relocated; d. at least annually; and e. more often if deemed necessary by the City Manager. 21.2 Double check valve assemblies may be utilized at premises where a substance is handled that would be objectionable but not hazardous to health if introduced into the potable water system. 21.3 DCs shall be sized to provide an adequate supply of water and pressure for the premises being served. 21.4 Premises where non-interruption of water supply is critical shall be provided with two (2) assemblies of the same type installed in parallel. They shall be sized in such a manner that either assembly will provide the minimum water requirements while the two (2)together will provide the maximum water requirements. 21.5 Bypass lines are prohibited. Pipe fittings which could be used for connecting a bypass line shall not be installed. 21.6 The assembly shall be readily accessible with adequate room for testing and maintenance. DCs may be installed below grade, providing all test cocks are fitted with brass pipe plugs. All vaults shall be well drained, constructed of suitable materials, and sized to allow for the minimum clearances established below. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 20 hc\I:mbox4\wylle\cross connection.ord/10-20-99 21.7 Assemblies two (2) inches and smaller shall have at least a three (3) inch clearance below and on both sides of the assembly, and if located in a vault, the bottom of the assembly shall be not more than twenty-four(24) inches below grade. All assemblies larger than two (2) inches shall have a minimum clearance of twelve (12) inches on the back side, twenty-four(24) inches on the test cock side, and twelve (12) inches below the assembly. Headroom of six(6) feet is required in vaults without a fully removable top. A minimum access opening of twenty-four (24) inches square is required on all vault lids. 21.8 Vertical installations are allowed on sizes up to and including four(4) inches that meet the following requirements: a. internally spring-loaded check valves; b. flow is upward through assembly; c. manufacturer states their assembly can be used in a vertical position; and d. approved by the City Manager. 21.9 All DCs shall be tested in accordance with this Ordinance. 21.10 Deviations from these specifications will be evaluated on a case-by-case basis by the City Manager. No deviations shall be permitted without prior written approval of the City Manager. SECTION 22: DOUBLE CHECK DETECTOR ASSEMBLY ("DCDA"). 22.1 Double detector check valve assemblies may be utilized in all installations requiring a double check valve assembly and detector metering. DCDAs shall comply with the installation requirements applicable for double check valve assemblies ("DCs"). SECTION 23: PRESSURE VACUUM BREAKER ASSEMBLY ("PVB") AND SPILL-RESISTANT VACUUM BREAKER("SVB"). ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 21 hc\I:mbox4\wylie\cross connectionordll0-20-99 23.1 PVBs and SVBs may be utilized at point-of-use protection only and where a substance is handled that would be objectionable but not hazardous to health if introduced into the potable water system. PVBs and SVBs protect against backsiphonage only and shall not be installed where there is potential for backpressure. 23.2 The assembly shall be installed a minimum of twelve (12) inches above the highest use outlet or overflow level downstream from the assembly. 23.3 PVBs and SVBs shall not be installed in an area subject to flooding or where damage would occur from water discharge. 23.4 The assembly shall be readily accessible for testing and maintenance, with a minimum clearance of twelve (12) inches all around the assembly. 23.5 PVBs and SVBs shall be located between twelve (12) inches and sixty(60) inches above ground level. 23.6 A strainer with blowout tapping may be required ahead of the assembly. 23.7 All PVBs SVBs must be tested in compliance with this Ordinance. 23.8 Deviations from these specifications will be evaluated on a case by case basis. No deviations shall be permitted without prior written approval of the City Manager. SECTION 24. ATMOSPHERIC VACUUM BREAKER("AVB"). 24.1 AVBs provide minimal protection and are approved for very low hazard application only. AVBs protect against backsiphonage only and are prohibited where there is potential for backpressure. 24.2 The assembly shall be installed a minimum of six (6) inches above the highest use outlet or overflow level downstream from the assembly. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 22 hc\l:mboa4\wyfe\cross connectlon.ord/10-20-99 24.3 Shutoff valves downstream from the assembly are prohibited. 24.4 AVBs shall be allowed only for those applications where there is less than twelve (12) hours per day continuous use. 24.5 AVBs shall not be installed in an area subject to flooding or where damage may occur from water discharge. 24.6 AVBs shall be allowed for point-of-use protection only in accordance with the Plumbing Code. AVB's, in some installations, may not be recognized as adequate protection by the City Manager; therefore, additional protection will required. SECTION 25: AIR GAP SEPARATION. 25.1 Air gap separations provide maximum protection from backflow hazards and may be utilized at premises where a substance is handled that would be hazardous to health if introduced into the potable water system. 25.2 An air gap separation shall be at least twice the diameter of the supply pipeline, measured vertically above the top rim of the receiving vessel, and in no case, less than one (1) inch. If splashing is a problem, tubular screens may be attached or the supply line may be cut at a forty-five degree (45°) angle. The air gap distance is measured from the bottom of the angle. Hoses shall not be allowed. 25.3 Air gap separations shall not be altered in any way and shall be available for inspection at all times. 25.4 Side walls, ribs or similar obstructions do not affect air gaps when spaced from the inside edge of the spout opening at a distance greater than three (3)times the diameter of the effective opening for a single wall, or a distance greater than four (4)times the effective opening for two (2) intersecting walls. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 23 hc\I:mbox4\wylie\cross connection.ord/10-20-99 25.5 In cases where there are three or more side walls, ribs or similar obstructions extending from the water surface to or above the horizontal plane of the spout opening other than as specified in subsection 25.4, the air gap shall be measured from the top of the wall. 25.6 The effective opening shall be the minimum cross-sectional area at the seat of the control valve or the supply pipe or tubing which feeds the assembly or outlet. If two (2) or more lines supply one (1) outlet, the effective opening shall be the sum of the cross-sectional areas of the individual supply lines or the area of the single outlet, whichever is smaller. SECTION 26: RESPONSIBILITIES OF PROPERTY OWNERS AND/OR LESSEES. 26.1 It is the responsibility of all property owners and/or lessees to abide by this Ordinance. SECTION 27: ACCESS TO PREMISES. 27.1 Every person provided water service by Wylie, directly or indirectly, shall permit the City Manager to enter their premises and/or buildings for the purpose of inspecting pipes, fixtures and/or the manner in which the water is used to determine compliance with this Ordinance. 27.2 If any water user refuses access to their premises for inspection by an Inspector and/or the City Manager, the water user shall install a reduced pressure principle assembly at the service connection to the premises so as to ensure premises isolation or containment protection. 27.3 Any and all costs associated with premises isolation or containment protection shall be the sole responsibility of the property owner and/or lessee. SECTION 28: RIGHT-OF-WAY ENCROACHMENT. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 24 hc\l:mbox4\wylie\cross connection.ord/10-20-99 28.1 No person shall install and/or maintain a backflow prevention assembly upon or within any right-of-way of Wylie except as provided by this Section. 28.2 A backflow prevention assembly required by this Ordinance may be installed upon or within any right-of-way of Wylie only if the property owner and/or lessee proves to Wylie, by clear and convincing evidence, that there is no other feasible location for installing the assembly, and installing it in the right-of-way will not interfere with traffic and/or utilities. A property owner and/or lessee must obtain Wylie's approval of the location, height, depth, enclosure, and other requisites of the assembly prior to its installation. 28.3 Any assembly or portion of an assembly which extends above ground shall be located no closer than eighteen(18) inches to the face of the curb. 28.4 A property owner and/or lessee shall, at the request of Wylie and at the property owner's and/or lessee's sole expense, relocate a backflow prevention assembly which encroaches upon any right-of-way of Wylie when such relocation is necessary for street and/or utility construction and/or repairs and/or for purposes of public safety. 28.5 All of Wylie's codes and/or ordinances relevant to easement issues will be recognized by and incorporated into this Ordinance. SECTION 29: EMERGENCY SUSPENSION OF UTILITY SERVICE. 29.1 The City Manager may, without prior notice, suspend water service to any premises when such suspension is necessary to stop an actual or threatened backflow which: a. presents or may present imminent and substantial danger to the environment or to the health or welfare of persons; and/or b. presents or may present imminent and substantial danger to Wylie's public water supply. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 25 he\l:mbox4\wylie\cross connection.ord/10-20-99 29.2 As soon as practical after the suspension of service, the City Manager shall notify the owner or person in charge of the premises of the suspension in person or by certified mail, return receipt requested, and shall order such person to correct the cross connection which allowed the backflow to occur. When time permits, the City Manager should also notify the property owner, lessee or occupant prior to suspending water service. 29.3 If any person fails to comply with an order issued under subsection 29.2, the City Manager may take such steps as the City Manager deems necessary to prevent and/or minimize damage to the public water supply and/or to minimize danger to persons. 29.4 The City Manager shall not reinstate suspended services until the person: a. presents clear and convincing proof, satisfactory to the City Manager, that the backflow has been eliminated and its cause determined and corrected; b. pays Wylie for all costs Wylie incurred in responding to the backflow and/or threatened backflow; and c. pays Wylie for all costs Wylie will incur in reinstating service. 29.5 A person whose service has been suspended under this Section may appeal the suspension of service provided the appeal is made in accordance with Wylie's SOP, or as amended, within ten (10) days of notice of the suspension. 29.6 A person is in violation of this Ordinance if the person reinstates water service to premises suspended pursuant to this Section, without the prior approval of the City Manager. 29.7 The City may obtain a lien against the property to recover its response, abatement, and remediation costs. 29.8 The remedies provided by this Section are in addition to any other remedies set out in this Ordinance. Wylie's exercise of the remedy provided in this Section shall not be a bar against, nor a prerequisite for, taking any other action against a violator. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 26 hc\I:mboa4*Ale\cross connection.ord/10-20-99 SECTION 30: NON-EMERGENCY TERMINATION OF WATER SUPPLY. 30.1 The City Manager may terminate the water supply of any water user who: a. refuses the City Manager reasonable access to the water user's premises for the purpose of inspection; b. hinders and/or denies the City Manager access to backflow prevention assemblies; c. fails to install a reduced pressure principle assembly as required by Section 27; d. fails to install and/or maintain backflow prevention assemblies in compliance with this Ordinance; or e. fails to install, maintain, and/or operate their piping and plumbing systems in accordance with the Plumbing Code. 30.2 The City Manager may notify a water user of the proposed termination of its water supply. The water user may petition the City Manager for a reconsideration and hearing in accordance with Wylie's SOP, or as amended. 30.3 The remedies provided by this Section are in addition to any other remedies set out in this Ordinance. Wylie's exercise of the remedy provided in this Section shall not be a bar against, nor a prerequisite for, taking any other action against a violator. 30.4 The City Manager shall not reinstate suspended services until the person: a. presents clear and convincing proof, satisfactory to the City Manager, that the backflow has been eliminated and its cause determined and corrected; b. pays Wylie for all costs Wylie incurred in responding to the backflow and/or threatened backflow; and c. pays Wylie for all costs Wylie will incur in reinstating service. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 27 hc\I:mbox4\wylie\cross connection.ord/10-20-99 SECTION 31: PENALTY PROVISION. 31.1 Any person, firm, corporation or business entity violating this Ordinance shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be fined a sum not exceeding Two Thousand Dollars ($2,000.00). Each continuing day's violation under this Ordinance shall constitute a separate offense. The penal provisions imposed under this Ordinance shall not preclude Wylie from filing suit to enjoin the violation. Wylie retains all legal rights and remedies available to it pursuant to local, state and federal law. SECTION 32: SAVINGS/REPEALING CLAUSE. 32.1 All provisions of any ordinance in conflict with this Ordinance are hereby repealed to the extent they are in conflict;but such repeal shall not abate any pending prosecution for violation of the repealed ordinance, nor shall the repeal prevent a prosecution from being commenced for any violation if occurring prior to the repeal of the ordinance. Any remaining portions of said ordinances shall remain in full force and effect. SECTION 33: SEVERABILITY. 33.1 Should any section, subsection, sentence, clause or phrase of this Ordinance be declared unconstitutional or invalid by a court of competent jurisdiction, it is expressly provided that any and all remaining portions of this Ordinance shall remain in full force and effect. Wylie hereby declares that it would have passed this Ordinance, and each section, subsection, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, and phrases be declared unconstitutional or invalid. ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 28 hc\l:mbox4\wylie\cross connection.ord/10-20-99 SECTION 34: EFFECTIVE DATE. 34.1 This Ordinance shall become effective from and after its adoption and publication as required by the City Charter and by law. DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS, on this day of 1999. JOHN MONDY, Mayor ATTESTED TO AND CORRECTLY RECORDED BY: APPROVED AS TO FORM: BARBARA SALINAS ABERNATHY, ROEDER, BOYD City Secretary & JOPLIN, P.C. RICHARD M. ABERNATHY REBECCA BREWER City Attorneys Date of Publication: ORDINANCE ESTABLISHING A CROSS CONNECTION PROGRAM-Page 29 hc\t:mbox4\wylie\cross connectionord/10-20-99 WYLIE CITY COUNCIL AGENDA ITEM NO. 6. November 9, 1999 Issue Hold a public hearing and consider and act upon an ordinance of the City of Wylie, finding that TXU Lone Star Gas Company's rates within the City should be changed, determing just and reasonable rates, adopting weather normalization adjustment, rejecting plant and investment cost of service automatic adjustment clauses, approving an adjustment factor for franchise fees and state occupation tax, providing for recovery of rate case expenses,preserving regulatory rights of the City, ordering that this ordinance be served on TXU Lone Star Gas Company and providing for repeal of conflicting clauses. Background The City of Wylie is now part of the Northeast Metro Distribution System as designated by Lone Star Gas ("Lone Star"or "Company"). The Northeast Metro Distribution System includes the following cities:Wylie,Allen,Fairview, Frisco, Garland, Lavon, McKinney, Murphy, Parker, Plano, Richardson, Rowlett, Sachse and The Colony. Lone Star desires to establish one set of rates for all cities on the Northeast Metro Distribution System. On or about May 7, 1999, the Company filed an application to increase rates on the System. The last base rate change for the Northeast group occurred April 8, 1996. The last base rate change for the City of Wylie occurred in March 1993. Lone Star represents that it needs to increase rates by$6,693,368, or 9.12%. Lone Star proposed an effective date for the increase of June 14, 1999. The distribution cities passed resolutions suspending the effective date for 90 days, until September 12, 1999, as permitted by the Utilities Code §104.107 to allow for an independent evaluation of Lone Star's request to be performed under the supervision of a Cities' Steering Committee with representatives from Wylie,Allen, Fairview, Garland, McKinney, Plano, Richardson, Rowlett and The Colony. The Steering Committee employed outside legal counsel, Geoffrey Gay, from the firm of Butler, Porter, Gay&Day in Austin, Texas, and the consulting firm of Navigant(a.k.a. Reed-Stowe) to analyze and report on the Company's application. A copy of the consultant's report and recommendations has been provided to you. Also, a copy was sent to Lone Star. The Consultant's report shows that Lone Star has a revenue deficiency in the Northeast Metro system of$2,787,183. The Cities' Steering Committee considered the Company's critique of Cities' Report and engaged in settlement discussions on August 25, 1999. No settlement was reached at that time. A second meeting was held with Lone Star representatives on October 7, 1999. On October 25, 1999,Lone Star agreed to the settlement as outlined in the attached ordinance which allows the Company to recover 25% of the requested residential revenue increase and 100% of the commercial customer revenue increase. (The Consultant's report showed that Lone Star was "over-recovering" costs from the residential class of customers and `under-recovering" costs from commercial customers.) This produces an overall settlement at about 32%of the Company's request($2.14 million). Financial Considerations Residential rates in Wylie will decrease approximately 0.32%while commercial rates will increase 8.11 %. This equates to a$2,399 annual decrease spread over all Lone Star residential customers in the City and a $20,928 annual increase spread over all Lone Star commercial customers in the City. This rate change does not affect Lone Star's industrial customers in the City of Wylie with whom it has negotiated contracts. These 4 customers include Sanden, Extruders, Holland Hitch and Carlisle Castings. Other Considerations Lone Star agrees that it will not appeal this case to the Railroad Commission of Texas if the municipalities approve the settlement amount. Staff Recommendation It is recommended that the City Council adopt this ordinance. Attachments Gas Rate Request from Lone Star Consultant's Report Ordinance Adopting Settlement Agreement with Lone Star Gas ii...4_91,?_,/,v-i-.441...0..44..., 17 2 , ?n,L, Bred by Revie by Finance City Manager Approval 111.01.004 „. thimmom 16 ligolifasat ' Nom ' . • . • . - I. 'Nis 1°'• . , . .. . • . ... .-... . • - •• • • •. •••••• :.;..... .:::.;•:.:-..;:......,•:,. ...•.:;:::::.. ..",:::;::::']::.,...:,.::::::.:::::. 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' --a ,c, ,,,,,,,,,_-,,,,, ,,t, , n. , . " , , 1,_ ----------. . . , , , • •,•: ,,,, •, . i , „. .. .. ,,,,. ,,.. • ?E 0 ' verview or . yl x.a . , . , ,, , e „ , .., , , ,. , , , . . . ‘, , , , . , , , . , , , . , . .., , ,, , . ., . , , , . , , , , Over the years Lone Star Gashas earned a reputation as a provider of safe, reliable and depen• e gas service to a large portion of Texas Along with providing dependable service,;we also deliver our product at a fair price. Whi le Lone Star has maintained stable rates over extended periods of time, it does become necessary to a rates periodically in order to cover normal cost increases in providing service to our customers. We have worked hard to keep our rate ch ' a. � / re in Wylie as low as reasonably possible. Lone Star's last general service rate increase in Wylie occurred in March 1993. Since that time, in order to achieve ,` ++•t i1n ;,. i ciencies,Wylie leas become a part of the Northeast Metro Distribution system. While our requested increase`for the entire Northeast Metro ,+iK..t<�< c., " 9 °o,the impact of the increase on Wylie is $78,469 or 7.77%: With this increase, Lone Star Gas will be able to continue to provide its Gusto t� x ;[[,s`, yI rsa` to�.t!,X'�4 bl lhe natural ` gas service at the lowest reasonable cost. '' When it becomes necessary for Lone Star to request a rate increase,there are a number of factors that usually contribute to the `t 1k-94,a;s,y. ), �':+`llt,�" 4„.y, 2 k r.� I� L • Metro System,the following have created this required increase: 4 f `r 7r II r, � s x.tt5,+ !1 is f, • Increase in Plant Investment(construction of new distribution facilities) in fn rf ;:::1„:".,,,,,,,,,,:t....,,..,,,.,,s.t,,,i. ■ Changes in Operating Expenses(labor,supplies,and material) , _ J�' l `,z We are also proposing two special adjustment features that will prove to be beneficial to the customers,Lone Star and municipal regulators ;Thesh y<, oaf i ,r }� , , are the Cost of Service Adjustment(COSA)and the Plant Investment Cost Adjustment(PICA). ;:�; i; i�{;s' '�^' t of this nature is how the proposed rates will impact the consumer. With this change, a residential ii f t, Y 41rv; , One of the greatest concerns in a reques P p r.' , r usingan average of 7 Mcfper month will realize an increase of$2.01. A commercial customer using an average of 27 Mcf per month will I 1 ' �1" : . increase of$8.70. Lone Star Gas appreciates the opportunity to serve the Northeast Metro Distribution System (which consists of the communities of Wylie,Allen,'�1,IA„,t n,` %" .r Fairview,Frisco,Garland,Lavon,McKinney,Murphy,Parker,Plano, Richardson,Rowlett, Sachse,and The Colony)with the benefits of natural ,,, x'3n� .t: T�. ,I e s r�zti�t�� and is striving to be the best in our industry as your natural gas provider. Because of the need to maintain the same uniform rate throughout the ;,•PtMs s s Yin, ,,a u Northeast Metro Distribution System,the cities are encouraged to coordinate their efforts during the evaluation of this'request. Please be assure d<,, fI ; ,,'°'-0 , we stand ready to assist in every possible way as you evaluate this proposal and will be happy to furnish additional'information upon your request � ' , u . .2$ aka /■■w '■rr p■■r I� ire p.rt wry. r...�. r• ...�..� _ r } , r3 r • • •• •.. .. . . .. •• . . •.: . •• .........•:, ....••••••... .•.....•. .:„..,.... .......... • .. •.. ... C6ñi&iidated Northeast• I s ry; s Y t v , i .. . . ... . ..•. . .. •• .• .. . .... ..• .. . . .... .. ... ........... .•„.••.. .. ....... ... .: . .: ... . , .. . .. . . . • L' • •••••• ,: •1••:-•'-'•::•:•...1,:•,..:::..i..::••••..-:•'::-.•••••'...:;-:•'. .. '' .• .:e. . • .:• . . . . .. .....• . ..•.. .... . . . . MetroTiàte Filing \•. . . . ... . . .. . ..... ....., ., ... .... ... ..•:::::...... .::....:.:...„........:.:...................,..•,.. :, , . . .,,...;,..,i4......,...ii:.;.,.:,6••...ri.;..,1„::,..,,:•ri.......,,:.,,..f):: ::: . . ..... ... . . • . . . . . . .. . • . . •...• . . .. . . . . . . . . . . . • . ... .. . , . . • . . .. . .. . ... .. . ...., . . . . . . . ... • • • • i 1 s ... . . . . . .. .• . ... ..... . . . ....•....•....... • Al•len •. .,: . Pa � � 4YISYr •.... ..•:•,....„,....,.>„„:.:•;!..„:..............;:::,.:,:..•:,.;•:;:.:.,.;•.,..f..,,. ..,,i,. ....,..::.,...2.),::.:6,.N.:.,..0:,..,,,:.„,„...,„.41,..,...,,„...:,„..,.:,...,,,;,,..,...,:.:::..,.,,..,..„......,...;.......;... . . . . . .... .,.....•...,....:. .• .......... ... • } 1 I(y fA 1 7 Fairview• • Plano - t � } Frisco Richardson f �yt • sK° .t t�J t Ff. y ly y tJ t, .. 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O 1. Mak . "lit w�r� fir... rr..�r �. �--- ••r., i ce..• . .... . . .. . . .. . . . . ..•. ...• •. .. •. • . ., . • • ,. .. _.........o . ,: . o� ' "„...,,,:„:„.,,,„„:„•:„.„:„:„.„.,.,.-.: • . . . . .• . . . ... .. ........ .., • • • • •.:.,...• .•.•-•... ......•..:-.:•....-:.:.••••:::-:.:::•:::-...i..••••.::,...-.„.•....:-.-...,/:•-..-.,:„..„......-...-...••••••••:•.:•-„•••••••• •- . • - • W •hil•e there are many issues to be cons_d r•- d• in establishing xates; th ey` Gan alb be •r•elated to a Cost of Serv•ic•e Formula. Th- ` ost of service for operating ' Y ;�1 • • q a.: ent and xnclues he a •distribution_ s stem is e ual to the revenue re u elements shown b •elow: STATE, it • REVENUE COST OF OTHER LOCAL AND RETURN ON REQUIREMENT = GAS OPERATING + FEDERAL + INVESTMENT EXPENSES TAXES `' ' .4 r . 4 V F f.017• .If Ir ' N,I..l <f'aJt�Lrj:, )t p7 GAS PURCHASES •AD VALOREM,REVENUE , r r,; UNACCOUNTED FOR GAS RELATED,PAYROLL, 0 r ;'}1r AND INCOME TAXES ?,' ;r t'`;. tiU 81. ^lfL C 31 f- ` �'1. it �Y 3){ 5 f ; RATE ASE ; RESIDENT AL AND COMMERCIAL - tM7V REVENUE PLUS SERVICE • L. CHARGES. RATE OF � t p ` s RETURN ;�n OPERATION AND MAINTENANCE • LABOR AND S&E, UNCOLLECTIBLES'....;;1.L::'.....•.:.L.....L.:H..-•:.,..•.•...•..••,:••.,•.:.',,...i,.....:.,••.••..•.....:••.'':...L,.:;':::.:::::,:.:::','..,.•.:'•.•"•::.'.,;:•••:•••.•.:,:,,.,.•.....•:'„:..,...:-i„:,::,i.:...•::.,,:•L•.•....,::...•:..••-.;..,?1'...:;....:Y:.!:,,,..:,,•,::.-,.::::::::•,.•.:,:„•.•:•,':.•:,..:."•.....:••,.••:•::i,.!,.....:.;:..:•,':,.:.:::.,.:,•.•;:,:;,,,,,...i'L...:,.,,:::...-......:...:.:::.:,.,.,,, .,,„..•.L.'.:.:,,.:....,,;.-L••..:.L.i:...''....,'",Li.;......k.,.,:.:..•:••,:.:.:.....:....,[•::.:.,,.i.:i:,.:::,:„'',.•;-..c..,::.:4::::,•.•.j..„....•,•4„,,•:;.!,.,.;,:.!".:,.:•,6•'&,::.,;,,..1...:••:;,,!';,P,:,„-."!.i.:t, Ft st DEPRECIATION INTEREST ON CUSTOMER DEPOSITS ''`` `��' AND CUSTOMERS ADVANCES f`�`f` 'f�'1i f _ f SJt 1 +o kr �Y. • r1"vV:fw11:t°df' e rr�i . �� 1iiYllil. Outat. rir�r; r.r.r• ...... �...... .. _ _ _....„.„........ . . ,_,....,..„...„,.....__ ..._____ : . ...INks, rt .,.;:ii,...,,,,..;.....„,..,,.:.....':;,..,,,...._:,.....:{:',:,,,,,;.i,,:.,;.,iL•_•,......-i;....:,:r;:.„,„_...f.. .„:: ;,...:....,i,,:;.:.,:i.,.,...........:.,,i.,;::,::i.:,.:.-.....,....,,..,,...i.-::::-.....-;::. _._, __ . ...... e r ..® Distribution T; — o - - - --- - - ----- - ... . ,. . Cost. • sitm.,,,, ' • .. 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August 9, 1999 • Mr. Geoffrey Gay Butler,Porter, Gay&.Day 1609 Shoal Creek Blvd., Suite 302 Austin, Texas 78701 Dear Mr. Gay Enclosed please find Navigant Consulting, Inc./Reed-Stowe & Co., Inc.'s Draft report and attached workpapers regarding the TXU/Lone Star Gas Statement of Intent to change the rates charged for natural gas service in the Northeast Metro Distribution System. Upon your review, please feel free to contact me at 450-0991. Thank you. • Very truly yours, Pat Moast Senior Consultant Enclosure • • __ ISIDIG{ LECG RMI • METZLER t ASSOCIATES Navigant Consulting,Inc •5806 Mesa Drive,Suite 310 Austin,TX 78731 •tel:512-450-0991 •fax:512.450-0515 r I • Draft Report NEDMS-TXU/Lone Star Gas Navigant Consulting, Inc./Reed-Stowe &Co., Inc. August 3, 1999 • Introduction • • This report presents to the City of Garland (the City) the findings and recommendations of Navigant Consulting, Inc./Reed-Stowe & Co., Inc. (NCI) regarding its evaluation of TXU/Lone Star Gas Company's (the ..Company) Statement of Intent to Change Residential and Commercial rates and to eliminate the rate schedules for Public Free Schools-N and. Commercial Contract for Public School Gas Service in the City of Garland (the Filing) as filed with the City on May 7, 1999. • The scope of.the Filing is limited to evaluating the revenue requirements of its Residential, Commercial and School retail customer classes and does not provide analysis of its Industrial Sales and Industrial Transportation lass revenue requirements. From an impacts perspective, ail cities located in the Company's Northeast Metro Distribution System (NEDMS) are affected by the Company's proposed rate changes. These cities include: Allen, Fairview, Frisco, Garland, Lavon, McKinney, Parker, Plano, Richardson, Rowlett; Sachse, The Colony, and Wylie. Company Proposals In its original filing, the Company's proposal includes the following recommendations for consideration and approval: a) Increase Residential lass operating revenues by 10.64%, or$5,989,032. b) Increase base Commercial dass.operating revenues by 4.82%, or$830,125. c) Decrease "Other Revenues"by 5.99%. d) Increase net overall operating revenues by 9.12%, or$6,772,980. e) Eliminate the Public Free Schools-N and Commercial Contract for Public School Gas Service. f) Combine the Commercial and School Basses into one Commercial class. g) Revise the Company's weather normalization clause.. NEDMS-TXU/Lone Star Gas 1 Navigant Consulting, Inc./Reed-Stowe &Co., Inc.. h) Propose a Cost of Service Adjustment Clause (COSA) to adjust rates and reflect actual changes in the per customer cost of providing gas service. i) Propose a Plant Investment Cost Adjustment (PICA) clause to adjust rates for the impact of changes in the plant investment cost of providing gas service to residential and commercial customers. j) Propose changes in.the Company's Service charges, including its Connection Charge, Read for Change Charge, Returned Check Charge, Delinquent Notification Charge and.Mainline Extension Rate. k) Allow operating. expense adjustments as proposed in the Filing to recover increases/decreases in such expenses. I) Change its Gas Cost Adjustment schedule, including changing the Company's base city gas gate rate to $2.7535 per mcf. Consultant Review Process In reviewing. the Company's NEDMS gas rate filing; NCI issued data requests and performed analysis on the Company's loads, costs, revenues and. customers. Using Company data, with specific modifications to certain expenses, NC! performed cost of service and cost allocation studies to evaluate the appropriateness of the Company's proposed changes to customer class retail rates. In performing this analysis, NCI reviewed the revenue requirements of each of the City's customer classes. This is in contrast to the Company's Filing, which limited the scope of its revenue requirements analysis to just the Residential and Commercial (R&C) classes. The basis for NCI's comprehensive evaluation of all customer classes is that all . customer classes must be examined to identify which of the Company's classes are over recovering their costs, and which are under recovering their costs within the context of the Company's overall revenue requirements. All classes must also be evaluated in order to assess the reasonableness and fairness of the Company's cost allocation methods. This overall analysis is also necessary in order to understand whether certain classes are subsidizing other classes according to a particular method of cost allocation. It is in this regard that the Company's limited analysis of R&C revenue requirements fails by not addressing the issues of class cost allocations and cost under-recoveries by its NEDMS-TXU/Lone Star Gas 2 Navigant Consulting, Inc./Reed-Stowe&Co., Inc. Industrial Sales and. Transportation classes. The consequence Company's limited scope of analysis is an incorrect shifting of costs to the R&C Basses. It is NCI's position that on the basis of equity, sound regulatory practice and policy that the City of Garland should not accept the Company's cost allocation and revenue requirements approach which looks only at the R&C rate classes. NCI's revenue • requirements analysis of all classes finds that the Residential Bass is over-recovering its cost of service and that all other classes are under-recovering their costs of service. Summarized below areNCI's findings and recommendations for the City's consideration: Findings- 1) The Company has not provided any evidence and/or justification that the realignment of multiple distribution systems/jurisdictions is in the public interest, nor has the Company presented any justification for the proposed NEMDS as defined by the Company. 2) Contrary to the Company's claims, the Residential retail class is over-recovering its costs of service by$1,416,421. 3) All other retail customer classes are under-recovering their costs of service by $4,203,594. 4) The Company fails to address and identify merger-related savings in this filing. 5) The Company fails to explain why the scope of its filing excludes any analysis of its Industrial Sales and.Industrial Transportation classes. 6) The Company's proposed weighted average cost of capital is 9.50%. Based upon a hypothetical capital structure and hypothetical cost of debt, NCI finds that the appropriate weighted average cost of capital for the Company is 8.28%. This includes a 11.25% return on equity, which is comparable to recent rate decisions at the distribution level adjusted to reflect increases in interest rates. 7) The Company's requested level of A&G supplies and expenses and Customer Accounts expense is excessive. 8) The Company has failed to meet its burden of proof that affiliated transactions are fair,just and reasonable. 9) It is within the City's right to affirm the applicability of its Public Free School Rate- N and Contract Public School Rate. NEDMS-TXU/Lone Star Gas 3 Navigant Consulting, IncJReed-Stowe&Co., Inc. • • Recommendations 1) • Rejectthe Company's Filing on the basis that the Company has failed to meet its burden of proof that the consolidation of multiple distribution systems (and regulatory jurisdictions) is in the public interest. 2) Reject the Company's Filing on the basis that it is not in the public interest Based on NCI's comprehensive review of ail rate classes, the Company's proposed increase to Residential class retail rates is incorrect and violative of Title 3, Section 101.002 and 103.001 of the Gas Utility Regulatory Act(GURA). 3) Affirm the applicability of the Public Free School Rate-N and Contract Public School Rate specifically within the City of Garland. Consistent with this • recommendation, NCI recommends that other regulatory authorities located in the NEDMS may also wish to consider the reestablishment of the availability of the Free Public Schools tariff in their regulatory jurisdictions. 4) In the alternative to rejecting the Company's filing, NCI offers that the City consider denying, the Company's proposed $5,989,032 residential retail rate increase and order a reduction in Residential ratesof-$1,416,421. •. 5) Similarly, in the alternative to rejecting the Company's filing, NCI recommends that the. City consider approving an increase of 8.05% or $1,387,461 to the Commercial base retail rate. 6) Order that any and all rate increases approved in this filing be subject to possible adjustment and refund, pursuant to the Company's mandatory cost of service and merger savings filing as ordered by the Texas Railroad Commission (RRC) in its May 20, 1997 Order in Docket No. 8664. In Docket No. 8664, the RRC specifically Ordered the Company to "file a statement of intent three years after the effective date of the merger for consideration of the changes in the cost of service established in this case. Lone Star's filing SHALL include full and complete documentation of all merger savings" (page 24). 7) Order the Company to file proof that its affiliate fee payments to its TXU affiliate for billing and accounting services are equitable, competitively priced and not self serving in comparison to comparable services that are being offered by non- affiliated energy service companies. Upon review of this offering of proof, the City should reserve the right to Order the disallowance of ail TXU affiliate payments found to be preferential, uneconomic and self serving. • NEDMS-TXU/Lone Star Gas Navigant Consulting, Inc./Reed-Stowe&Co., Inc. • 8) Allow the Company's proposed 'changes in its weather normalization adjustment • clause. 9) Reject the Company's proposed operating expense (COSA) and investment (PICA) clauses. 10) Approve the Company's proposed Connection Charge, Read for Change Charge, Returned Check Charge, Delinquent Notification Charge and Mainline Extension'Rate. Discussion of Issues Although jurisdiction for approving natural gas commodity cost recoveries is the domain • of the State of Texas, the City correctly and appropriately has jurisdiction for review and approval of the Company's operating expenses and associated rates for service within its city limits according to Chapter 103, Section 103.001, Jurisdiction and Powers of Municipality, in the Gas Utility Regulatory Act (GURA). It is in support of the City's jurisdiction over these costs in this immediate Filing that NCI submits the following • discussion and analysis. Filing's Limited-Scope of Analysis Results in Cost Subsidization The Company's Filing focuses exclusively on its R&C classes. However, in narrowly focusing on the revenue requirements of these two classes, the Company avoids making a.showing that its Industrial Sales and Transportation classes are under-recovering their costs of service: The consequence is an inappropriate shifting of costs from its Industrial Sales and Transportation classes to the R&C. Contributing to NCI's concern about cross subsidization risk to the R&C classes is the Company's failure in its Filing to explain why its Industrial classes are excluded from the Filings scope. NCI performed a comprehensive cost of service study that included all of the Company's retail classes to discover whether the Company's cost assignments to the R&C classes • were appropriate. The results of NCI's analysis indicates that the Residential class is currently recovering its costs of service and that the Company's other lasses are under- recovering their revenue requirements. Based on its analysis, NCI finds that the Company's narrow revenue requirements focus and proposed R&C rate increase pose equity and regulatory concerns that violate Title 3, Section 101.002 and 103.001 of the Gas Utility Regulatory Act(GURA). NEDMS-TXU/Lone Star Gas 5 Navigant Consulting, Inc./Reed-Stowe &Co.,.Inc. • • Specifically, NCI believes that the Company's Filing shifts costs from the Industrial lasses to the Residential class, thereby violating Section 101.003 of GURA regarding "the public interest inherent in the rates and services of gas utilities" and the need for an "adequate regulatory system for gas utilities to assure rates, operations, and services that are just and reasonable to the consumers and to the utilities." • In addition, NCI believes that the Filing's inherent cost shifting violates Section 103.001 • of GURA which charges municipal jurisdictions with responsibility "Rio provide fair, just, and reasonable rates and adequate and efficient services" with exclusive original jurisdiction over the rates, operations, and services of a gas utility within the municipality." As such, NCI offers for the City's consideration the option of denying the Company's proposed.rate increases under Sections 101.003 and 103.001 under GURA. Merger Savings: Even though the issue of merger related savings was a major issue in Docket No. 8664, • the Company fails to document the existence of any merger related savings in its present filing. Therefore, absent any showing of merger savings by the Company, NCI believes that the Company's present request for approval to recover revenue deficiencies is-premature and inappropriate. There is risk that the Company's claims of revenue shortfalls will be found imprudent as part of the Company's expected 2000 filing as required in the RRC's Order in Docket No. 8664. In its May 20, 1997 Order in Docket No. 8664, the RRC specifically stated that the Company is required to "file a statement of intent three years after the effective date of the merger for consideration of the changes in the cost of service established in this case. Lone Star's.filing SHALL include full and complete documentation of all merger. saving? (page 24). It is NCI's belief that the issues identified in the Docket No. 8664 Order are directly related to issues in the Company's current Filing. Therefore, until the Company complies with the RRC's Order in Docket No. 8664 and files a statement of intent regarding cost of service and merger savings, the City may be approving costs that ultimately will be disallowed pursuant to Docket No. 8664. NEDMS-TXU/Lone Star Gas 6 Navigarrt Consulting, IncJReed-Stowe&Co., Inc. • Specifically, NCI believes that the Company's Filing shifts costs from the Industrial classes to the Residential class, thereby violating Section 101.003 of GURA regarding "the public interest inherent in the rates and services of gas utilities" and the need for an "adequate regulatory system for gas utilities to assure rates, operations, and services that are just and reasonable to the consumers and to the utilities." In addition, NCI believes that the Filing's inherent cost shifting violates Section 103.001 • of GURA which charges municipal jurisdictions with responsibility "[t]o provide fair, just, and reasonable rates and adequate and efficient services" with exclusive original jurisdiction over the rates, operations, and services of a gas utility within the municipality." As such, NCI offers for the City's consideration the option of denying the Company's proposed.rate increases under Sections 101.003 and 103.001 under GURA. Merger Savings: . Even though the issue of merger related savings was a major issue in Docket No. 8664, • the. Company fails to document the existence of any merger related savings in its present filing. Therefore, absent any showing of merger savings by the Company, NCI believes that the Company's present request for approval to recover revenue deficiencies is-premature and inappropriate. There is risk that the Company's claims of revenue shortfalls will be found imprudent as part of the Company's expected 2000 filing as required in the RRC's Order in Docket No. 8664. In its May 20, 1997 Order in Docket No. 8664, the RRC specifically stated that the Company is required to "file a statement of intent three years after the effective date of the merger for consideration of the changes in the cost of service established in this case. Lone Star's.filing SHALL include full and complete documentation of all merger. savings" (page 24). It is NCI's belief that the issues identified in the Docket No. 8664 Order are directly related to issues in the Company's current Fling. Therefore, until the Company complies with the RRC's Order in Docket No. 8664 and files a statement of intent regarding cost of service and merger savings, the City may be approving costs that ultimately will be disallowed pursuant to Docket No. 8664. NEDMS-TXU/Lone Star Gas 6 Navigant Consulting, Inc./Reed-Stowe&Co., Inc. There is reasonable precedent to indicate that the Company's merger savings and cost of service will be disputed in the Company's. filing in response to the RRC's Order in Docket No. 8664. For example, Company Witness Siegler testified in Docket No. 8664 that savings from the merger will accrue to the distribution side of its business (Tr. Page 120, lines 3—9, January 27, 1997). Q: •I think that it has been your testimony in our prior questioning that the significant impact of the savings, whatever they may be, resulting from the merger will fall on the distribution side of the business, as opposed to that which is in this gate rate proceeding. Is that correct? A: That is correct In this same testimony, Company Witness Siegler describes how merger savings will result from reduced distribution costs (Tr. Page 121, lines 3—15, January 27, 1997). ...expenses,.in our judgment; and I believe this to be accurate, when they can finally be achieved, net of the savings and over the time, are going to be Power than they otherwise would have been if the merger hadn't occurred:. We will be more efficient as a combined entity. We wilt be able to deliver electricity and gas at an expense level lower than what otherwise would have occurred in that future time period without the merger. That will flow through and constitute at some point intiimethe rates being charged being lower than they otherwise would have been without the merger. Those are two, I think,. of the most importantfactors,factors of benefit to the R&C customer. • In considering the Company's filing obligation under Docket No. 8664, NCI recommends the City consider either deferring rate increases, or Order that all approved increases in this case be subject to refund pending resolution of the Company's cost of service and merger savings filing Ordered by the RRC in Docket Number 8664. Cost of Service and Customer Class CostAllocation As described earlier, the Company narrowly limits its Filing to the R&C rate classes and does not evaluate the individual revenue requirements of its Industrial Sales and Transportation retail Basses. As such, the Company declines to address how all of its retail lasses perform in meeting the Company's required return. In developing its revenue proposals, the Company assigns costs to its R&C lasses using a "zero capacity" cost allocation method that assigns.costs based on the cast of • NEDMS-TXU/Lone Star Gas 7 • Navigant Consulting, Inc./Reed-Stowe&Co., Inc. • mains in excess of minimum'size. This approach shifts costs to the Residential Bass and shifts costs from the Industrial Sales and Transportation classes by emphasizing class demand and de-emphasizing class throughput NCI disagrees with the Company's shifting of cost responsibility from the Industrial Sales and Transportation classes under the "zero capacity" method. In the alternative, NC! recommends use-of the "Seaboard" cost allocation method as appropriate for fair and reasonable customer class cost allocation. The "Seaboard" cost allocation is an established cost allocation method that has been accepted by the RRC and other regulatory bodies for measuring and assigning costs in equal amounts based on each class' demand and throughput In addition to adopting NCI's Seaboard cost allocation method for assigning costs.in this proceeding; NCI further recommends that the City consider Ordering the Company to perform a load study for each class in order to develop a demand and annual load characteristics in preparation for its upcoming cost of service and merger savings filing with the RRC'pursuantOrder in Docket No. 8664. City of Garland Public' Free School-N and Commercial Contract for Public School Gas Service In its Filing, the Company proposes to eliminate the rate schedules for Public Free School-N and Commercial Contract for Public School Gas Service Rates and to Consolidate the applicable school customers into the Commercial class, and specifically within the rate filing package filed with the City of Garland. In support of its proposal, the Company states. that "pursuant to City of Garland. Ordinance No. 4881, ordained on July 11, 1995, the Public Free School Rate-N was eliminated effective.July 11, 1995 and that the Commercial Contract Public School Rate was eliminated effective January 1, 1996" (Filing, page 9, May 7, 1999). In this context; the Company explains that"However, there is pending litigation that may determine otherwise, and, in the event that it is ultimately determined in such litigation that such rates were non heretofore eliminated, Lone Star proposes to eliminate the Public Free School Rate-N and the Commercial Contract Public School Rate, so that all NEDMS-TXU/Lone Star Gas 8 Navigant Consulting, Inc./Reed-Stowe&Co., Inc. public schools taking gas service will take such gas service under the Commercial rates set out above" (Filing, page 9, May 7, 1999). Based on its review, it is NCI's opinion that the City did not eliminate the Public. Free School and Commercial Contract Public School Rates. NCI also finds that the Company has not made.a showing in its Filing justifying the consolidation of the school customers into the Commercial class rate. NCI further believes that the Company has not shown that its proposed realignment of school customers is in the public interest. NCI offers for the City's consideration that it has the jurisdictional right to Order the availability of the Public Free School and Commercial Contract Public School Rates as rate options for applicable customers. In this way, the school rates will be available to customers if they want them. • Consequently, NCI recommends the City consider rejecting the Company's request to eliminate the rates "if not heretofore eliminated." Cost of Capital •. The Company's proposed weighed average cost of capital is 9.50% in its.current Filing. The Company's capital structure is hypothetical and based on other natural gas distribution companies. In reviewing the Company's hypothetical capital structure, NCI recommends using the actual capital structure of ENSERCH- Corporation as shown in Schedule 3 in the attached tables. Using the ENSERCH capital structure, NCI recommends a weighted average cost of capital for the Company is 8.28%, which includes the use of the Company's proposed 11.25% return on equity, which is comparable to recent distribution rate decisions when adjusted for the increase in interest rates enacted by the Federal Reserve Board. Adjustments NCI recommends a negative adjustment to Customer Accounting. S&E and Customer Information expenses by$600,775, a negative$1,544,929 adjustment to A&G Labor and S&E and a positive $9,000 rate case expense adjustment; to reflect one year's amortization of the estimated rate case expenses associated with these proceedings amortized over three years. NEDMS-TXU/Lone Star Gas 9 Navigant Consulting, Inc./Reed-Stowe&Co., Inc. • Proposed Adjustment Clauses The Company proposes to continue its Weather Normalization Adiustment as authorized with one change. Residential customers' load will be adjusted for weather using actual residential base load instead of residential class base load. Adjustments will occur each billing cycle to match the weather for each billing cycle with customer bills read in that particular billing cycle. Although NCI was not able to quantitatively measure and test the Company's method, NCI finds that the Company's descriptive narrative of its proposed method is appropriate in principle. Consequently, NCI recommends that the City consider approving the Company's proposed Weather Normalization Adjustment while reserving the right: to evaluate the actual mechanics of the Company's Weather Normalization Adjustment in future proceedings.. The Company proposes a Cost of Service Adiustment Clause (COSA) that is intended to adjust rates-to reflect actual changes in the per customer cost of providing gas service. Underthe Company's proposal, the Company would have the right to automatically flow cost changes and allocation methods through rates. NCI disagrees with the Company's • proposed COSA on- the basis that it prevents the City and interested parties from the opportunity and rightto evaluate and cost adjustments and allocation methods. As such, NCI recommends the_City consider rejecting.the Company's proposed COSA. In- addition to the COSA, the Company also proposes to implement a Plant Investment Cost Adjustment (PICA) clause to adjust rates for the impact of changes in the plant investment cost for providing gas service to residential and commercial customers. The proposed. PICA would operate In a similar way to the Company's proposed COSA, whereby the Company would be able to annually reflect changes in the system's distribution plant NCI has similar concerns with the PICA as it has with the proposed COSA in that the PICA prevents parties from review and comment regarding the flowing through of cost changes. • • NEDMS-TXU/Lone Star Gas 10 Navigant Consulting, Inc./Reed-Stowe&Co.,.Inc Schedule 1 . • NEMDS TXU/Lone Star Gas(TY 6130/99) Calculation of Revenue Excess(Deficiency) Total System Total System Consultant Consultant Revenues&Expenses at Present Rates Per Books Adjustments Adjusted Adjustment Recommended Operating Revenues Residential Sales 63.049,479 (8.778,763) 58,272,716 56,272.716 Commercial Sales 19,880,412 (2.717,225) 17,163,187 17,163.187 Schools Sales • 51.474 (3,971) 47,503 47,503 Industrial Sales 1,197,653 (251,318) 946,335 9413•335 Electric Generation Sales 0 0 0 0 . Military Sales 0 0 0 0 Total Gas Sales Revenue 84,179,018 (9,749,277) 74,429,741 74.429,741 Transportation Revenue 946,512 0 946,512 946.512 • Other Rev-Sery Chgs,Etc. Residential 708,805 0 708,805 708,805 Commercial 62.449 0 62,449 62.449 Total Operating Revenues 85,896,784 (9,749,2771 76.147,507 0 76,147,507 Operating Expenses • Gas Purchases. For Residential Sales- 39,566,357 (8,905,488) 32,660,869 32,660.869 For Commercial Sales. 14,215,399 (2.649.441) 11.565,958 11,565,958 • For School Sales 46,717 (3.950) 41,767 41,767 For Industrial Sales. 1,047,373 (227,337) 820.036 820,036 . For Electrical Generation Sales 0 0 0 0 For Military Sakes 0 0 0 0 Unaccounted-for Gas 1,768,494 (960.024) 806,470 806.470 OtherO&Mt Expenses 0&M Labor 5,196,426 154,407 5,350,833 5.350,833 O&M'Supplles&:Expenses 9,725,738. (58.806) 9.668.932 (2.145,704) 7,521,228 Uncollectible•Accounts 380,088 (201,465) 178.631 178.631 Taxes Other Than Income Taxes. Property-Related Taxes 1,213,160 0 1,213,160 1,213,160 Payroll-Related Taxes. 428.340 1.578 440,916 440,916 Provision For Depreciation 4,045,985 0 4,045,985 4,045985 Amortization of Rate Case Expenses. 9,000 9.000 Interest on Customer Deposits 108,327 0 108.327 108.327 Interest on Customer Advances 250.072 0 250,072 250,072 Total Expenses(exci gas costs&rev.taxes 21,348.134- (93.278) 21.254,856 (2.136,704) 19.118.152 Total Operating Expenses before FIT 77,989,474 (10,839,518) 67,149,956 (2136,704) 65.013,252 Revenue-Related Taxes 4,718.602 (441,258) 4,277.344 4,277,344 Total Expenses Excluding FIT 82,708.078 (11,280,776) 71,427,300 (2.138.704) 69,290,596 Net Operating Income 6,856,911 Interest Cost . 2.717,902 Taxable Income 4,139.009 FIT at 35% 1,448,653 Return an Equity After Taxes 2.690.356 Schedule 2 NEMDS-TXU/LONESTAR GAS(TY 6/30/99) REQUESTED CAPTIAL STRUCTURE-HYPOTHETICAL %of Capitalization Cost Weighted Average Cost Debt-Long term $38,907,820 46.70% 7.69% 3.59% Preferred Stock $1,832,917 2.20% 7.11% 0.16% Common Equity $42,573,651 51.10% 11.25% 6.75% $83,314,388 100.00% 9.50% CONSULTANT RECOMMENDED • ENSEARCH CORPORATION-CAPITAL STRUCTURE • %of Capitalization Cost Weighted Average Cost Debt-Long term $702,000,000 35 76% 6.58% 2.35% Advances from TUC $265,000,000 13.50% 5 96% 0.81% Preferred Stock. $221,000,000 1126% 6.03% 0.68% Common Equity $775,000,000 39.48% 11.25% 4.44% $1,963,000,000 100.00% 8.28% Schedule 3 NEMDS-TXU/LONE STAR GAS (TY 6/30/99) CONSULTANT RECOMMENDED REVENUE DEFICIENCY AND REVENUE REQUIREMENT Company's Consultant's Calculations Calculations Original Cost Rate Base 86,009,557 86,009,557 Return 9.50% 8.28% Required Return 7,118,994 • Return at Existing Rates 5,408,258 Return Deficiency 1,710,736 Revenue Related Taxes 155,282 RT * 921,165 Revenue Deficiency 2,787,183 'Not filed.by Company • Schedule 4 NEMDS-TXU/Lone Star Gas(TY 6130199) Class Specific Calculation of Revenue Excess(Deficiency) Total System Raidendal Commercial Seised Indust.Sales Indust.TS Operating Expenses 69,290,596 49,230,834 18,549,550 59,808 1,117,097 2,333,509 Recommended Return 7,118,994 4,787,778 1,501,698 8,941 73,330 789,249 Federal Income Tax 2.389,819 1,568,700 510,598 2.386 25,213 264,923 Additional Revenue Related Taxes '• 155,282 0 128.108 483 8.847 18.083 Revenue Requirements - 78,934,890 55,585,110 18,889.952 89,598 1,224,288 3.385,744 Current Gas Sales Revenues 74,429,741 58,272.718 17,183,187 47,503 948,335 0 Other,Transportation Revenues •1,717,776 708,815 82,449 0 0 948.512 Total Revenues. 78,147,517 56.981.531 17,225.636 47,503 948,335 948,512 Revenue Excess(Deficiency) (2.787,173) 1,416.421 (1,484,316) (22.093) (277953) 12,439.232) • Schedule 5 NEMD$-TxWl-one star Ras(TY eI40I99) Invested capital and Adjusted Value Rate ease . Plant In Service-Net Orieine Total System Total Res&Com Residential CommsrcIsl School Indust.Saleg Induet.TS • Distribution Plant Meters 6,798,294 5,790,118 5,320,998 488,788 320 3,373 2,806 House Reg&Meter& 4,951,879 4,326,287 3,230,1364 1,089,477 5,148 64,384 672,228 Services 20,418,830 17,834,933 13,321,362 4,462,363 21,218 224,166 2,369,632 Mains 61,487,109 63,706,761 40,114,906 13,527,960 83,895 876,033 7,106,316 All Other Distribution 872,856 782,233 589,330 191,996 907 9,580 100,842 Total Distribution Plant 93,626,667 82,419,329 62,657,250 18,770,664 91,488 886,610 10,140,723 Nat General Plant 8,051,396 6,372,935 4,132,709 1,234,822 ' 5,804 69,204 819,268 Net Plant In Service 99,677,982 87,792,284 88,889,959 21,005,215 97,090 1,025,720 10,759,978 . Other Rate ease Items 0 0 0 0 0 0 0 CWIP and RWIP World 132,786 117,089 88,930 28,010 129 1,368 14,348 Materials& Supplies& 412,340 363,637 276,156 86,98Q 402 4,247 44,666 , . 0 Customer Deposits& 4,873,031 4,298,278 3,283,598 1,027,929 4,751 50,195 528,659 Warier;&Damages Re 387,810 341,910 259,728 81,808 378 3,996 41,905 ITC's Unrestored Tots 1,463,898 1,281,841 973,677 308,898 1,417 14,974 157,080 Accumulated Deferred 7,398,994 8,523,276 4,955,299 1,580,782 7,214 78,215 799,604 Total Invested Capital 88,009,557. 75,829,788 57,602,844 18,143,083 83,880 885,958 9,293,833 Schedule 6 NEMDS-T J1l-qn0 Star G40 (TY 6I3RI99) customer Glass AlIQcptiQn of Expenses • Total Total Opar&MaInt Labor Excl Adm b,Gen System Rea&Comm Realdpntlal Commercial School Indust.Selcs Indust.TS Labor(excl A&G): Distribution Labor 2,808,88E 2,314,4113 1,780,185 531,819 2,414 25,503 288,747 Cust Acctg,Cust info,Sales Labor 1,827,488 1,446,899 1,112,880 331,408 1,503 16,872 168,017 Total Labor Excluding A&G 4,234,156 3,780,017 2,092,875 063,228 3,917 41,375 432,766 Supplies&Expenses(Inc)A&G,uncol ectible) • Distribution Supplies Si BxPenses 2,276,773 2,020,822 1,664,206 404,309 2,100 22,266 232,888 Cust Acctg,Cust Infor,&Sales S&E 1,401,262 1,244,658 958,023 285,340 1,294 13,666 142,940 Adm&Gan Labor and S&E 4,980,870 4,406,440 3,381,875 1,010,184 4,680 48,381 608,049 . Uncollectibie Accounts 178,631 178,031 164,167 14,464 0 0 0 Total Operation Expenses 13,050,892 11,810,388 8,980,944 2,837,623 11,1198 126,888 1,314,840 Provision Fpr Depreciation 4,046,986 3,593,803 2,786,181 823,888 3,736 39,458 412,724 11mortizatlon of Rite Case Expenses 8,000 7,894 8,153 1,833 8 88 918 Interest on Cust Dap&Adv 368,399 368,017 329,010 28,987 20 209 173 Property Related Taxes 1,213,180 1,077,578 829,420 247,038 1,120 11,831 123,762 Payroll Related Taxes 440,916 391,639 301,448 89,784 407 4,300 44,977 Revenue Requirement for Expenses 10,118,152 17,039,395 13,193,167 3,829,048 17,189 181,572 1,887,185 schedule 7 NEMDA-TMUII-one Star Go;(TY SWIM Allocation of Invagtad Capital Totnl System Total Rws&Com Rev1001141 • Commorcigl School Indust.Sales Indust.TS : Invested Capital Debt 36.76% 30,758,385 27,117,930 20,699,89a 6,488,248 29,990 316,832 3,323,822 Advances from TUC 13.60% 11,811,071 10,238,826 7,778,237 2,449,287 11,321 119,802 1,264,644 Preferred Stock 11.26% 9,883,195 8,537,126 8,486,044 2,042,597 9,441 99,743 1,046,326 Common Equity 39.48% 33,968,906 29,937,888 22,741,828 7,182,852 33,108 • 349,779 3,689,241 TotsI Invested Capital 88,009,667 75,829,788 67,802,844 18,143,063 83,860 885,958 9,293,833 Return Requirement 7,114,994 6,278,414 4,767,778 1$601,698 8,941 73,330 789,249 r , Schedule S NEMDS-TXU/Lone Star Gas(TY 6130/99) Class Specific Calculation of Revenue Excess(Deficiency) Total - System Residential Commercial School. Indust.Sales- Indust.TS Operating Revenues - 74,429,741 58,272.716 17,163,187 47,503 948.335 0 Gas Sales Revenues 948,512 Transportation Revenue 948,512 0 0 Other Revenues(S.C.'s,etc.) _771,264 708,815 62,449- 0 Total Revenues 78,.147,517 56,981,531 17,225.838 47,503 948,335 948,512 . • • Operating Expenses. Gas purchases 46,088,630 32,531.254 11.841.283 37,988" 878,105 0 Unaccounted For Gas 808.470 581,885 208.220 679 15.708 0 Other O&M Expenses 52 285 548,875 O&M Labor - •5,350,833 3,858,331 1,090.815 4,948 O&M Supplies&Expenses 7,521,228 5,140,447 1,532,444 8,951 73,421 767,965 Unccikctibis•Accounts 1.78.831 184,167 14,484- 0 0 0 • Taxes other than Income Taxes. • Property Related Taxes 1,213.160 829.420 247,038 1,120 11,831 123,752 PayroU Related:Taxes 440.916 301,448 89,784 • 407 4,300 44,977 Provision for Depreciation 4,045,985 Z768,181 823,888 3.738 39,458 412.724 8 gg 918 Amortization of Rate Case,Expenses 9.000 8,153 1,833918 InterestCust.Deposits&Advances 358,399 329.010 28.987 20 209 Total Operating Exp.(no Rev.Tax.&t7 85,013,252 48,308,278 15.678;552 55,857 1,075,383 1.897,18541,715 438,324 Revenue Related Taxes 4,277,344 2.924,358 870,998 3,949 Total Expenses.(no FIT&Debt Interest 89,290,598 49,230,834 18,549,550 59,808 1,117,097 2.333,509 Net Operating Inc.Before FIT&Debt I 6,858.921 T.750.897 678.086 (12.303) (170,762) (1,388.997) Calculation of Farningp Excess IDeficiencvt Less Debt Int.Cost 4717.902 1,858,190 553,448 2509 26.506 277.248 Taxable-Income 4,139,019 5,892,708 122.839 (14,812) (197.268) (1,884.245) FIT - 1.448.65T 2082.447 42.924 (5.184) • (89.044) (582.488) Total Exp find FIT&debt int costs) 73.467.155 53,151,272 17,145,921 57,131 1,074,559 2.028.271 , Net Income(net of 1T11 2.890,362 3,830,259 79,715 (9.628) (128,224) (1.081,759) Rate Base - 88,009,557 57,802.844- 18,143.063 83.860 885,958 9,293,833 8.29% 9.88% 3.49% -8.49% -11.48% -8.88% Return on Rate Base 8.28% 8.28% Recommended Return 8.28% 8.28% 8.2896- 8.28% Consultant Recommended Return 7,118.994. 4,787,776 1,501.698 8.941 73.330 789,249 Return Surplus(Deficiency) (1,710,729) 920.874- (888.535) (14.000) (175,048) (1,573.780) FIT (921,185) 485,747 (487,873) (7,571) (94.2571 (847,409) 0 128,108 483 8,847 18.063 Other Revenue Related Taxes 155,282 (277,9531 (2,439.232) Revenue Deficiency (2.787,177) 1,418,421 (1,484,318) (22.093) ORDINANCE NO. AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, FINDING AFTER REASONABLE NOTICE AND HEARING, THAT TXULONE STAR GAS RATES AND CHARGES WITHIN THE CITY SHOULD BE CHANGED; DETERMINING JUST AND REASONABLE RATES, ADOPTING WEATHER NORMALIZATION ADJUSTMENT; REJECTING PLANT INVESTMENT AND COST OF SERVICE AUTOMATIC ADJUSTMENT CLAUSES; APPROVING AN ADJUSTMENT FACTOR FOR FRANCHISE FEES AND STATE OCCUPATION TAX;PROVIDING FOR RECOVERY OF RATE CASE EXPENSES; ADOPTING A MOST FAVORED NATIONS CLAUSE; PRESERVING REGULATORY RIGHTS OF THE CITY; ORDERING THAT THIS ORDINANCE BE SERVED ON TXU LONE STAR GAS; PROVIDING FOR REPEAL OF CONFLICTING CLAUSES AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Wylie ("City"), acting as a regulatory authority, has previously suspended the effective date of TXU Lone Star Gas' ("Lone Star") application to adjust rates in the City in order to study the reasonableness of that application, and WHEREAS,the City, on November 9, 1999, considered the Company's application and a report from the City's consultants who were retained to evaluate the merits of Lone Star's application in a reasonably noticed public hearing, and WHEREAS, the City has determined that the Company's rates within the city should be changed and that the Company's application should be granted, in part, and denied, in part, NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Wylie, Texas, as follows: Section 1. That the existing rates and charges of Lone Star are hereby found, after reasonable notice and hearing, to be unreasonable, and shall be changed as hereinafter ordered. The changed rates resulting from this Ordinance are hereby determined to be just and reasonable rates to be observed and in force within the City. Section 2. That it is hereby ordered that Lone Star's rates in the City be set on the basis of a 3.07% increase in overall system average revenues with a 2.66% increase in system average residential revenues and a 4.82% increase in system average commercial revenues on the Northeast Metro Distribution System. The increase in overall system average revenues also includes a$46,177 decrease in other revenue (associated with service charges) over test year levels. Revenues of the City of Wylie are authorized to change from test year levels, exclusive of changes in service charges in the following manner: decrease $2,399 for residential customers and increase $20,928 for commercial customers. Section 3. The residential and commercial rates resulting form this Ordinance shall be adjusted upward or downward from a base per Mcf city gate rate set by the Railroad Commission of Texas by a Gas Cost Adjustment Factor or comparable mechanism authorized by the Railroad Commission of Texas. The city gate rate shall be adjusted by a volume factor of 1.0177 to recognize lost and unaccounted gas on the Northeast Metro Distribution System. Section 4. The Weather Normalization Clause proposed by Lone Star is adopted. The Plant Investment and Cost of Service automatic adjustment clauses proposed by Lone Star are unreasonable and are specifically rejected. Lone Star is authorized to adjust monthly bills to include any municipal franchise fee, street and alley assessment or state occupational tax now or hereafter in effect in this City. Section 5. Residential and commercial monthly customer charges of$7.00 and $12.00, respectively, are reasonable and are approved. Section 6. The miscellaneous service charges and line extension charges reflected in Exhibit A are reasonable and are hereby approved. Section 7. Approval of most favored nations clause is reasonable and in the public interest and Lone Star is ordered to provide commercial and residential residents of the Ctiy of Wylie the benefits of any agreement or order applicable elsewhere in the Northeast Metro Distribution System. Section 8. Lone Star shall file with the City, no later than the effective date of the changed rates ordred herein,revised Tariffs and Schedules,together with rate design workpapers and supporting data as requested, setting forth the rates, tariffs and changes based upon the increases and changes prescribed herein. Such Tariffs and Schedules may be modified or amended by the City Council to comply with the provisions of this Ordinance within twenty (20) days from the date of filing with the City, otherwise the same shall be considered approved as filed. Section 9. The fees and expenses associated with the City retaining counsel and consultants to investigate the Company's application are reasonable and are to be paid by Lone Star and recovered from ratepayers through a system-wide surcharge spread over a six month period. The Company shall provide a monthly accounting to the City showing, by months, the amount recovered through the surcharge. Section 10. The rate changes ordered herin become effective for billing on November 16, 1999. Section 11. This ordinance shall be served on Lone Star by U.S. mail to the Company's authorized representative, Greg Huckaby. Section 12. Nothing contained in this Ordinance shall be construed now or hereafter in limiting or modifying, in any manner, the right and power of the City under law to regulate the rates and changes of Lone Star. Section 13. All ordinance, resolutions, or parts thereof, in conflict with this Ordinance are repealed to the extent of such conflict. Section 14. It is hereby found and determined that said meeting at which this Ordinance was passed was open to the public, as required by Texas law, and that advance public notice of the time, place and purpose of said meeting was given. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, this 9th day of November, 1999. John Mondy, Mayor ATTEST: Barbara Salinas, City Secretary LONESTAR.ORD Exhibit A LONE STAR GAS COMPANY NORTHEAST METRO DISTRIBUTION SYSTEM SCHEDULE OF SERVICE CHARGES A. Connection Charge In addition to the charges and rates set out above, the Company shall charge and collect the sum of Schedule Charge Business Hours $35.00 After Hours $52.50 For each reconnection of gas service where service has been discontinued at the same premises for any reason, for the initial inauguration of service, and for each inauguration of service when the billable party has changed, with the following exceptions: a. For a builder who uses gas temporarily during construction or for display purposes; b. Whenever gas service has been temporarily interrupted because of system outage or service work done by Company; or c. For any reason deemed necessary for Company operations. B. Read for Change Charge A read for change charge of$12.00 is made when it is necessary for a Company employee to read the meter at a currently served location because of a change in the billable party. C. Returned Check Charges A returned check handling charge of$16.25 is made for each check returned to the Company for any reason. D. Delinquent Notification Charge A charge of$4.75 shall be made for each trip by a Company employee to a customer's residence or place of business when there is an amount owed to the Company that is past due. This charge shall not be made when the trip is required for safety investigations or when gas service has been temporarily interrupted because of system outage or service work done by Company. MAINLINE EXTENSION RATE The charge for extending mains beyond the free limit established by Franchise for residential, commercial, and industrial customers shall be based on the actual cost per foot of extension. VVYLIE CITY COUNCIL AGENDA ITEM NO. 4 . November 9, 1999 blue Consider and act upon a proposal for the purchase and installation of a meter reading system from Datamatic, Inc. of Richardson. -Background The City currently contracts with TXU Electric for meter reading services. The meter reader reads meters 12 days per month- 5 days each for Cycles 1 and 2, and 2 days for Cycle 3 (Southfork Mobile Home Park). On those days that he reads,he comes to the Utility Billing office to pick up the hand-held meter reading device he will use for that day. The Utility Billing personnel have previously loaded the route information into the hand-held. The reader drives his truck to the beginning of the route, gets out and begins his reading. In order to read a meter, the reader must locate the meter on the property,lift the cast iron or plastic lid,bend down to see the reading and manually enter it into the hand-held device using the keypad on the front and return the lid to its place. Each route is set up in a circular pattern so the meter reader returns to his truck and drives to the beginning address of the next route. The maximum number of meters a reader can read in a day is 350 to 400. The City currently uses hand-held meter reading devices manufactured by Norand and provided to it by the City's financial software vendor, CPS. Two of these devices were purchased in 1993 and a third device was purchased for the City by Southfork Mobile Home Park as part of the agreement between it and the City in 1995. As part of the City's preparation for the year 2000,Norand was contacted about the reliability of these hand-helds after January 1, 2000. Norand responded that this particular model was not going to be tested for year 2000 compatibility. In addition, TXU Electric has notified the City that it will discontinue providing meter reading services to the City as of February 1,2000. TXU will train new City personnel in the route structure and locations of all meters. The City issued a Request for Proposal for a new meter reading system and received responses from a number of vendors, as detailed in Attachment A. After careful review and evaluation of the responses by Utility Billing and Finance Department personnel, the staff is recommending that the City purchase the system offered by Datamatic, Inc. Datamatic has been producing hand-held meter reading devices since 1977. The company is based in Richardson, Texas, and meter reading solutions is its only business. The devices can be used with any meter the City may choose to install in any location. The system software,RouteSTAR MVP,runs in a windows environment, is PC- based, and provides management reports that are not available to the City with its present system that will help Utility Billing personnel to audit the meter reading process and work more efficiently. The FieldSTAR software provided by Datamatic produces electronic work orders. All the assignments for the City's Meter Technician can be loaded into one of the meter reading devices. The Meter Tech goes into the field and completes the work, such as setting new meters,turning water on and of or checking for leaks,without any cumbersome paperwork When he has completed the assignment,he enters any information into the meter reading device. All the work is time-stamped. Datamatic already has installations of its systems in other cities using CPS Utility Billing software, so the interface between the two systems has been developed and proven. Background continued Ifthe City decides to upgrade to an automated or radio-read meter reading system,these hand-held devices can still be used along with any water meter the City chooses. The radio-read system produced by Datamatic requires only that the meter have a sweep hand. A meter reader using a radio-read system would leave the office with his meter reading device and drive to the beginning of his first route. He can either get out of his truck and walk his route or drive through the route slowly(20 mph). In either case,he does not need to locate the meter, open the box, or get the reading. A radio signal is sent from the meter box and is picked up by the meter reading device as the meter reader passes by. The system can pick up meter readings from both sides of the street at the same time. A drive-by radio-read system will enable one meter reader to read each cycle in one day, cutting down the meter reading days from the current 12 to 3. The staff believes that with this kind of a system,the City can read meters and perform all other meter-related tasks with only 2 positions until the City's population reaches 45,000. Using a manual system would require 40 mandays of meter reading alone per month. Although the Datamatic radio-read system can be implemented using the City's current meter stock, the staff believes that a meter replacement program is a necessary part of this project. Many of the City's water meters are over ten years old. Meters slow down as they age and do not accurately register the water passing through them resulting in a loss of both water and sewer revenue. Financial Considerations Total cost of the manual meter reading system from Datamatic is $10,933. The cost of two hand-held meter reading devices, a four-slot cradle for charging, downloading and uploading, the RouteSTAR Management Software and software licenses is$8,483.00. Training and installation of the system by Datamatic personnel will cost approximately$2,450.00. One year of maintenance is included in the initial price. Ongoing maintenance for all software and hardware will be$1,421.40 per year. For an additional$9,280,the City can upgrade the manual meter reading system to one that will be capable of radio-read. The on-going maintenance charge would increase by$1,321. In addition,the City will need to purchase a personal computer, monitor and printer at a cost of approximately $2,500 from a third party. If any additional programming is required by CPS to interface with the system,the cost will be at $125 an hour. Funds were budgeted in the Utility Fund for the year 2000 upgrades as part of the year-end budget amendment process. The funds were not expended and the staff will include this item in the mid-year budget amendment process. Other Considerations N/A Staff Recommendation It is recommended that the City Council authorize the purchase of a meter reading system from Datamatic, Inc. of Richardson, Texas, at a cost not to exceed$22,000. Attachments Attachment A- List of responses from vendors • /S A) -a-o� - ail. 1 LIB ' ' .ared by Revie d by inance City Mana Approval Attachment A Responses to Request for Proposal for Hand-Held Meter Reading Devices TOUCH READ Datamatic Each Total Atlas Utility Each Total ABB Each Total 2 Roadrunner ES Hand-helds 2,376 4,752 2 FS3 Hand-helds(Itron) 5,995 11,990 2 FS3 Hand-helds(Itron) 3,450 6,900 1 Four-slot cradle 1,236 1,236 1 Cable 57 57 2 Probes 1,880 3,760 2 Probes 1,841 3,682 1 RouteStar Management SW 1,995 1,995 1 Connect Read Managmt SW 4,995 4,995 1 MV-RS EMR System SW 3,000 3,000 2 RouteStar Software Licenses 250 500 12,243 16,985 13,639 1 Training 2,450 2,450 1 Training 2,995 2,995 1 Training 3,100 3,100 Total Cost 14,693 Total Cost 19,980 Total Cost 16,739 Annual Maintenance 1,851 Annual Maintenance 1,695 Annual Maintenance 2,574 Logicon Each Total C3 Communications Each Total Schlumberger Each Total 2 VT5000T Hand-helds 2,375 4,750 Did not quote 2 DAP PC9800 Hand-helds 4,042 8,084 1 Four-slot cradle 1,550 1,550 1 Master Communication Unit 467 467 2 Probes 1,880 3,760 2 Probes 1,500 3,000 1 RouteManager Software 2,500 2,500 1 RouteMAPS Software 5,000 5,000 12,560 16,551 1 Training 2,850 2,850 1 Training 5,000 5,000 Total Cost 15,410 Total Cost 21,551 Annual Maintenance 1,990 Annual Maintenance 2,470 11/3/1999 4:41 PM analysis Attachment A Responses to Request for Proposal for Hand-Held Meter Reading Devices MANUAL READ Datamatic Each Total Atlas Utility Each Total ABB Each Total 2 Roadrunner ES Hand-helds 2,376 4,752 2 FS3 Hand-helds(Itron) 4,995 9,990 2 FS3 Hand-helds(Itron) 3,450 6,900 1 Four-slot cradle 1,236 1,236 1 Cable 57 57 1 RouteStar Management SW 1,995 1,995 1 MV-RS EMR System SW 2,995 2,995 1 MV-RS EMR System SW 3,000 3,000 2 RouteStar Software Licenses 250 500 8,483 12,985 9,957 1 Training 2,450 2,450 1 Training 4,500 4,500 1 Training 3,100 3,100 Total Cost 10,933 Total Cost 17,485 Total Cost 13,057 Annual Maintenance 1,421 Annual Maintenance 2,352 Annual Maintenance 2,334 Logicon Each Total C3 Communications Each Total Schlumberger Each Total 2 VT5000T Hand-helds 2,375 4,750 2 FS3 Hand-helds(Itron) 3,690 7,380 2 DAP PC9800 Hand-helds 4,042 8,084 1 Four-slot cradle 1,550 1,550 1 Cable 60 60 1 Master Communication Unit 467 467 1 RouteManager Software 2,500 2,500 1 MV-RS EMR System SW 5,000 5,000 1 RouteMAPS Software 5,000 5,000 8,800 12,440 13,551 1 Training 2,850 2,850 1 Training 3,500 3,500 1 Training 5,000 5,000 Total Cost 11,650 Total Cost 15,940 Total Cost 18,551 Annual Maintenance 1,560 Annual Maintenance Did not quote Annual Maintenance 1,870 Note: Datamatic's FieldSTAR work order software was not included in the response to the RFP,but is available for an additional$1,000. 11/3/1999 4:41 PM analysis Attachment A Responses to Request for Proposal for Hand-Held Meter Reading Devices RADIO READ Datamatic Each Total Atlas Utility Each Total ABB Each Total 2 Roadrunner ES Hand-helds 2,376 4,752 2 PI Portable Interrogators 6,495 12,990 2 FS3 Hand-helds(Itron) 3,450 6,900 2 Receiving units 1,800 3,600 2 FS3 Upgrades to Radio Read 1,395 2,790 1 Four-slot cradle 1,236 1,236 1 Cable 57 57 1 RouteStar Management SW 1,995 1,995 1 Connect Read Managmt SW 4,995 4,995 1 MV-RS EMR System SW 3,000 3,000 2 RouteStar Software Licenses 250 500 1 Firefly AMR Software 5,000 5,000 1 Programming/Profiling Unit 680 680 17,763 17,985 12,747 1 Training 2,450 2,450 1 Training 2,995 2,995 1 Training 3,100 3,100 Total Cost 20,213 Total Cost 20,980 Total Cost 15,847 Annual Maintenance 2,741 Annual Maintenance 2,285 Annual Maintenance 1,097 Logicon Each Total C3 Communications Each Total Schlumberger Each Total 2 VT5000T Hand-helds 2,375 4,750 2 FS3 Hand-helds(Itron) 4,490 8,980 Did not quote 2 RAMAR Receivers 1,795 3,590 1 C3 Install Software 5,500 5,500 1 RAMAR Programmer 980 980 1 MV-RS EMR System SW 5,000 5,000 2 Meter Transponders 59 118 1 ReadOne Programmer 2,095 2,095 2 Application Software 1,185 2,370 1 ReadOne Download Base 165 165 11,808 1 Battery Charger 185 185 1 ReadOne Software Link 5,000 5,000 26,925 1 Training 2,200 2,200 1 Training 3,500 3,500 Total Cost 14,008 Total Cost 30,425 Annual Maintenance Did not quote Annual Maintenance Did not quote 11/3/1999 4:41 PM analysis