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11-09-1999 (City Council) Agenda Packet NOTICE OF MEETING
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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
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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
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"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
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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
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"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
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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.
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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
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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;
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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
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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;
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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.
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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
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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.
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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
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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.
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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.
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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").
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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
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Metro System,the following have created this required increase: 4 f `r 7r
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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:
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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 � ' ,
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REVENUE COST OF OTHER LOCAL AND RETURN ON
REQUIREMENT = GAS OPERATING + FEDERAL + INVESTMENT
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DEPRECIATION
INTEREST ON CUSTOMER DEPOSITS ''`` `��'
AND CUSTOMERS ADVANCES f`�`f` 'f�'1i
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06 30-98 4
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•Revenue Requirement $81,027,650 ,, 1 +t' rt ;' ° ='f '
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• Cost of Gas $45,046, 84`' 155,, ! r .. ; r �
Tl. $19,212991 f ' 1 24%`
Operating Expensesr
State, Local, and Federal Taxes $ 8,856,407 11% , w
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Navigant
ant
CONSULTING. INC.
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
