02-12-2008 (City Council) Minutes Wylie City Council
CITY OF WYLIE
Minutes
Wylie City Council
Tuesday, February 12, 2008 — 6:00 pm
Wylie Municipal Complex — Council Chambers
2000 Highway 78 North
CALL TO ORDER
Announce the presence of a Quorum.
Mayor Mondy called the meeting to order at 6:00 p.m. Council Members present were: Mayor
Pro Tern Red Byboth, Councilwoman Kathy Spillyards, Councilman Carter Porter, Councilman
Rick White, Councilman Merrill Young, and Councilman David Goss.
Staff present were: City Manager, Mindy Manson; Assistant City Manager, Jeff Butters; Finance
Director, Larry Williamson; Police Chief, John Duscio; City Engineer, Chris Hoisted; Planning
Director Renae' 011ie, Interim Building Director, Charles Lee; Construction Manager, Shane
Colley; Public Information Officer, Craig Kelly; City Secretary, Carole Ehrlich, and various
support staff.
INVOCATION & PLEDGE OF ALLEGIANCE
Austin Byboth, Den #1 Bears-Cub Scout Pack 1049 gave the Invocation and members of Den
#1 Cub Scout Pack 1049 led the Pledge of Allegiance. (Dan Barnhart, Cailin Stewart, Jordan
Schwarz, Gavin Pugh and Austin Byboth; Den Leader, Brenda Byboth and Assistant Den
Leader, Scott Stewart were in attendance)
PRESENTATIONS
• Proclamation for Severe Weather Awareness Week. (Captain S. Seddig, Fire
Marshal)
Mayor Mondy and Mayor Pro Tem Byboth presented Captain Steve Seddig, Wylie Fire Marshal;
Jon Bodie, Radio Officer representing the Wylie RACES, and Bill Blanton, Volunteer
Coordinator, representing CERT of Wylie a proclamation designating Severe Weather
Awareness Week in the City of Wylie.
Mr. Bodie explained that "Storm Ready" is a National Weather Service certification issued to
communities demonstrating a verified level of emergency preparedness. Successful
achievement of Storm Ready status is based upon several criteria specific to severe weather
monitoring, community education, volunteer training & participation, public alerting capabilities
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Wylie City Council
Page 1
and a formalized severe weather plan of action within the city emergency operations plan. One
important part of Storm Ready certification is the placement of automated weather alert radios in
all city owned facilities offering public access. This includes the library, all public schools,
school & city administration buildings, city & school maintenance facilities and stand-alone
offices. He explained that due to a generous grant secured from the Wylie Wal-Mart, we were
able to purchase and place over two dozen of these radios in each facility that lacked one. Mr.
Bodie noted that the City of Wylie recently received official StormReady certification by the
National Weather Service in a brief ceremony held during the Collin County SKYWARN training
session on Saturday, January 26. Afterwards, National Weather Service - Ft Worth
Meteorologist-In-Charge Bill Bunting made the following comment to City Manager Manson,
Chief Corbin and myself: `If all communities in Dallas-Ft Worth area approached StormReady
certification in the manner in which the City of Wylie has, my job would be so much easier. You
guys did a great job'."
Mr. Bodie added that the "Storm Ready" certification by the City of Wylie could not have been
achieved without significant support of volunteer organizations such as Collin County Amateur
Radio Emergency Service (CCARES) and Wylie Radio Amateur Emergency Civil Service
(RACES). He thanked the Wylie City Council and also Wylie Fire Rescue for embracing the
efforts of volunteers like himself."
CITIZENS COMMENTS ON NON-AGENDA ITEMS
Residents may address Council regarding an item that is not listed on the Agenda. Residents must provide their
name and address. Council requests that comments be limited to three (3) minutes. In addition, Council is not
allowed to converse, deliberate or take action on any matter presented during citizen participation.
No citizens were present to address Council during Citizens Comments.
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. Consider, and act upon, approval of the Minutes from the January 22, 2008 Regular
Meeting of the City Council. (C. Ehrlich, City Secretary)
B. Consider, and act upon, Resolution No. 2008-04(R) ordering a General Election to
be held jointly with the Wylie Independent School District on May 10, 2008 for the
purpose of electing a Mayor and two City Council members, Places 5 and 6, to the
Wylie City Council to fill expired terms. (C. Ehrlich, City Secretary)
C. Consider, and act upon, a Joint Election Contract between the City of Wylie and
Wylie Independent School District (WISD); and a Joint Election Agreement to
include Collin County Community College District to be administered by the Collin
County Elections Administrator for the May 10, 2008 Wylie General Election. (C.
Ehrlich, City Secretary)
D. Consider, and act upon a release of escrowed funds, in the amount of$581,646.56, to
the Wylie Independent School District (WISD) for the construction of Hensley Lane.
(C. Hoisted, City Engineer)
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E. Consider, and act upon, authorizing the City Manager to enter into an agreement
with AppliedTech Group for technology consulting services for telecommunications,
data infrastructure, and security infrastructure and systems for the new Wylie Civic
Center. (J. Butters, Assistant City Manager)
F. Consider, and act upon, Ordinance No. 2008-04 for the annexation of a 0.1079 acre
tract of land situated in the H. Maxwell Survey, Abstract No. 579, Collin County,
Texas, generally located south of F.M. 544, west of Maxwell Creek Road, and
adjacent to Woodbridge North Development. (R. 011ie, Planning Director)
G. Consider, and act upon, Resolution No. 2008-05(R) authorizing the City Manager to
enter into an Entertainment Agreement, in the amount of 70,000.00, with Stewart
Schwensen Productions for entertainment/staging for the 2008 Summer Concerts
and Wylie Independence Day Fireworks Celebration. (R. Diaz, Superintendent, Parks
and Recreation)
H. Consider, and act upon, a Preliminary Plat creating seventeen (17) commercial lots
on 64.69 acres, generally located south of FM 544 between McCreary Road and
Springwell Parkway. (R. 011ie, Planning Director)
Mayor Pro Tern Byboth requested Item #E be pulled from the Consent Agenda for further
discussion and consideration.
Council Action
A motion was made by Councilman Young, seconded by Councilman White to approve Items A,
B, C, D, F, G, and H of the Consent Agenda as presented and to pull Item #E for individual
consideration. A vote was taken and passed 7-0.
REGULAR AGENDA
E. Consider, and act upon, authorizing the City Manager to enter into an agreement
with AppliedTech Group for technology consulting services for telecommunications,
data infrastructure, and security infrastructure and systems for the new Wylie Civic
Center. (J. Butters, Assistant City Manager)
Staff Comments
Assistant City Manager Butters addressed Council stating that AppliedTech Group was recommended by
Architexas as a consulting firm to complete the design for telecommunications, data infrastructure, and
security infrastructure and systems for the Wylie Civic Center. AppliedTech Group has submitted a
proposal for these services. He reported that references of other cities that AppliedTech Group has
consulted for were checked by Shone Doville, IT Supervisor; Shane Colley, Construction Project Manger;
and I and we received nothing but outstanding reviews. He reported that Staff had met with AppliedTech
Group and all of us were extremely impressed. He reported that the collective recommendation is that the
City contract with AppliedTech Group for the listed services for the new buildings.
Staff/Council Discussion
Mayor Mondy asked Assistant City Manager Butters how much AppliedTech Group was charging for their
consulting services. Assistant City Manager Butters replied that the cost was $95,300.00. Mayor Mondy
asked Assistant City Manager Butters why this particular service was not being sent through the bidding
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Wylie City Council
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process. Assistant City Manager Butters explained that due to the escalation of the design process for the
new buildings, there was not enough time to go out to bid and have the documents ready to be included
with the design construction documents. He explained that Architexas had reviewed estimated consulting
costs to complete the technology phase and AppliedTech Group was within those estimates and came
very highly recommended by many sources. Mayor Mondy asked if this agreement included overseeing
the actual installation of the systems. Assistant City Manager Butters replied that it did. Mayor Mondy
asked how long it would take to postpone action and go out to bid. Assistant City Manager Butters
explained that the design of the buildings was very close to completion by the architects and the City
would have to ask them to stop the design process in order to take the consulting for telecommunications
out for bid.
City Manager Manson reported that the City was intending to complete a long range plan for technology
and suggested moving forward with the proposed consulting services for the new buildings and then go
out for bid for the long range plan. Mayor Pro Tern Byboth asked if anyone had been contacted locally to
provide a bid. Assistant City Manager Butters replied that he would be skeptical; "with the scope of this
project and the security involved, I believe AppliedTech, with twelve consultants on-board, that have
completed major projects for companies and universities, would be the best option". Mayor Mondy stated
that he was concerned with the stepped up timelines and stated that he wanted to "scrub" the timeline to
make sure everyone was in sync and each department signed off on those timelines and items
requested; "so these types of cracks don't happen in the future". Councilman Porter asked if the City had
any recourse in the contract in regards to the completion date, to insure it was completed in time for the
final design. Assistant City Manager Butters replied that AppliedTech had just completed several projects
and were designating all their staff to the City project to insure it was completed on time.
Council Action
A motion was made by Mayor Pro Tern Byboth, seconded by Councilman White to authorize the
City Manager to enter into an agreement with AppliedTech Group for technology consulting
services for telecommunications, data infrastructure, and security infrastructure and systems for
the new Wylie Civic Center. A vote was taken and passed 7-0.
Public Hearings
1. Hold a Public Hearing and consider, and act upon, Zoning Case 2008-01, regarding
a request for a Specific Use Permit (SUP) for an Auto Repair, Major use on one lot on
0.648 acres (Regency Business Park Phase I, Block B, Lot 1) generally located east of
Regency Drive and south of Steel Road (101 Regency Drive). (R. 011ie, Planning
Director)
Staff Comments
Planning Director 011ie addressed Council stating that the subject property is located within the Regency
Industrial district at the southeast corner of Regency Drive and Steel Road (101 Regency Drive) and
totals 0.648 acres. The property is currently zoned Light Industrial and has been used for miscellaneous
light & heavy industrial uses, including salvage yard, contract construction and open storage uses. An
800 sq. ft. metal building occupies the southern region of the property along with a fenced open storage
area towards the rear. She explained that Light Industrial districts are intended to provide for less-
intensive assembly, warehousing and distribution of products from previously prepared materials and
parts. The primary focus should be industrial and commercial uses that serve regional, state and national
markets. The applicant proposes an automotive paint and body repair facility, which is
designated/defined as an Automotive Repair, Major use by the Zoning Ordinance. Auto Repair, Major
use is defined as a facility used for maintenance, repair, and restoration or rebuilding of vehicles under
6,000 pound gross vehicle weight. She explained that this includes engine rebuilding, body work and
painting.
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Planning Director 011ie stated that the City Council voted to amend the Zoning Ordinance to allow
Automotive Repair, Major uses within the Light Industrial zoning district by Specific Use Permit(SUP). An
SUP provides a means of oversight and evaluation by the Commission and City Council of certain uses
as to its probable effects upon adjacent properties and the community's welfare by assuring
appropriateness and compatibility with surrounding land uses. She explained that the proposed
redevelopment of the property shall be in compliance with current nonresidential design requirements
including exterior building material, site and landscape designs. In addition, the applicant has committed
to prohibiting any outdoor open storage of inoperable vehicles including miscellaneous automotive parts.
If approved, this commitment is made a part of the SUP Conditions.
Planning Director 011ie reported that twelve notifications were mailed, with five (5) written responses
returned favoring the request and two (2) responses opposing the request. The Planning & Zoning
Commission voted 6-1 to recommend approval of this Zoning Case (2008-01). Mayor Mondy asked
Planning Director 011ie what the opposition was to the zoning application. Ms. 011ie reported one P&Z
Commissioner voted in opposition, voicing concerns regarding the proximity to the proposed retail site at
the southeast corner of FM 544 and McCreary Road. Other comments made were the number of existing
automotive repair facilities in the immediate area. It was further discussed and determined that the
adjacent facilities surrounding the subject property had a different clientele than what was being proposed
for this site. She reported that the proposed major automotive repair facility will not be in competition with
the surrounding existing facilities and is by appointment only. The planned facility will have as its client
base two major insurance companies, which will refer customers to the facility. There will not be drop-offs
or walk-ins, unless an appointment has been made.
Mayor Mondy asked Planning Director 011ie if Mr. Herzog, had spoken at the Planning and Zoning
meeting. Planning Director 011ie reported that she had been in contact with Mr. Herzog and he had some
concerns regarding the zoning case but after seeing the building design and hearing there would be no
outside storage, he was in favor of the zoning change and communicated that at the Planning and Zoning
meeting.
Public Hearing
Mayor Mondy opened the Public Hearing at 6:15 p.m. for Zoning Case 2008-01, asking anyone
present wishing to speak on the item to come forward, state their name and address, and keep
their comments to 3 minutes.
Paul Mann property owner at 112 Regency Park, Wylie addressed Council speaking in favor of
the SUP for Auto Repair Major, (Zoning Case 2008-01). He stated that he owned the property
across from the proposed zoning and felt that the property in question was the gateway to
Regency Park. He explained that it had been undeveloped for many years and he was very
much in favor of the improvements this zoning case would provide.
Mayor Mondy closed the Public Hearing at 6:18 p.m.
Council Action
A motion was made by Councilman Porter, seconded by Councilman White to approve Zoning
Case 2008-01, regarding a request for a Specific Use Permit (SUP) for an Auto Repair, Major
use on one lot on 0.648 acres (Regency Business Park Phase I, Block B, Lot 1) generally
located east of Regency Drive and south of Steel Road (101 Regency Drive). A vote was taken
and passed 7-0.
2. Hold a Public Hearing and consider, and act upon, Ordinance No. 2008-05 adopting
the Standards of Care for Youth Programs. (R. Diaz, Superintendent, Parks and
Recreation)
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Staff Comments
Assistant Parks Superintendent Robert Diaz addressed Council stating that pursuant to state law, the City
of Wylie has adopted Standards of Care for Youth Programs since the inception of the summer youth
programs in 2000. The process includes the annual review of standards, a public hearing, and adoption of
an ordinance in order to comply with Texas Senate Bill 212, Human Resource Code, Section 42.041 (b)
(14).
Public Hearing
Mayor Mondy opened the Public Hearing at 6:30 p.m. asking anyone present wishing to speak
on the item to come forward, state their name and address, and keep their comments to 3
minutes.
No citizens were present to address Council during the public hearing for the Adoption of
Standards of Care for Youth Programs.
Mayor Mondy closed the Public Hearing at 6:30 p.m.
Council Action
A motion was made by Councilman Young, seconded by Councilman Porter to approve Ordinance No.
2008-05 adopting the Standards of Care for Youth Programs, 2008. A vote was taken and passed 7-0.
General Business
3. Consider, and act upon, Ordinance No. 2008-06 amending Ordinance No. 2007-29
(2007-2008 Budget) and approving an appropriation of funds in the amount of
$212,073.03 for the revised final statement of cost for the extension of SH 78 from
Eubanks to Spring Creek. (C. Holsted, City Engineer)
Staff Comments
City Engineer Hoisted addressed Council stating that on September 24, 2002, Council approved a Master
Advance Funding Agreement (MAFA) with TxDOT for the extension of SH 78 from Eubanks Ln. to Spring
Creek Parkway. Also, a Local Project Advance Funding Agreement (LPAFA) was approved on June 8,
2004 for the project. The MAFA contains statewide contract standards generally agreeable to all cities
and the LPAFA contains project specific provisions. The SH 78 extension project was completed by Site
Concrete and accepted by TxDOT in 2006. In April of 2007 TxDOT completed the final audit of the project
and requested an additional $248,478.15 from the City of Wylie per the terms of the LPAFA. Staff
objected to the calculation of the mobilization as a percentage of the total cost of the project.
Mr. Hoisted explained that the requested funds had been under discussion between himself and TxDOT
for several months. He reported that the original bill was $248,478.15 with no backup information. He
reported that After requesting and reviewing the documentation, he was able to lower that amount to
$212,073.03. The additional costs were due to change orders during the lane construction on SH 78.
Council Action
A motion was made by Councilman Young, seconded by Councilman White to approve
Ordinance No. 2008-06 amending Ordinance No. 2007-29 (2007-2008 Budget) and approving
an appropriation of funds in the amount of $212,073.03 for the revised final statement of cost for
the extension of SH 78 from Eubanks to Spring Creek. A vote was taken and passed 7-0.
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4. Consider, and act upon, Resolution No. 2008-06(R) authorizing the City Manager to
enter into an Interlocal Agreement with the North Texas Municipal Water District
for the relocation of approximately 3,400 feet of 14-inch water pipeline along FM
1378. (C. Holsted, City Engineer)
Staff Comments
City Engineer Hoisted addressed Council stating that the North Texas Municipal Water District (NTMWD)
operates a 14-inch water pipeline generally located along the west side of FM 1378 from FM 544 to
Brown Street. He explained that the existing pipeline will be in conflict with the proposed City facilities as
well as portions of the future reconstruction of FM 1378. The water line must be constructed and in
service prior to the start of construction of the new municipal buildings. He reported that the proposed
agreement specifies that the City provide an easement for the relocated water line as well as reimburse
the district for the project cost. He noted that in conversations with the County, the County has agreed to
reimburse for this expense. NTMWD has already approved this agreement, contingent upon City Council
approval.
Council Discussion
Mayor Mondy asked City Engineer Hoisted how much the cost was for the project. City Engineer Holsted
reported that the total cost was $434,900. Mayor Mondy asked what would happen if the City did not
approve the agreement. Mr. Hoisted replied that it would delay the construction of the facilities.
Councilman Young asked if any upgrades needed to be added to this agreement. City Engineer Hoisted
replied that some discussion had taken place regarding abandoning the line completely, but the water
district felt they needed the line for emergencies and to supply water to the City of Plano.
Council Action
A motion was made by Mayor Pro Tern Byboth, seconded by Councilman Goss to approve
Resolution No. 2008-06(R) authorizing the City Manager to enter into an Interlocal Agreement
with the North Texas Municipal Water District for the relocation of approximately 3,400 feet of
14-inch water pipeline along FM 1378. A vote was taken and passed 7-0.
5. Consider, and act upon, an Engineering Services Agreement, in the amount of
$62,000.00, with Ha1ff Associates, Inc. for the design of the FM 1378 detour. (C.
Holsted, City Engineer)
Staff Comments
City Engineer Hoisted addressed Council stating that the location of the new City facilities is proposed to
be just east of the future alignment of FM 1378 and on the existing alignment of the roadway as shown on
the site plan. The construction of the new City facilities is scheduled to begin in August 2008 which is
prior to the construction of FM 1378; therefore, a temporary detour is necessary to allow the construction
of all three buildings to start at the same time.
Council Discussion
Mayor Mondy asked Mr. Hoisted if this design had anything to do with the design of the buildings or the
realignment of FM 1378. Mr. Hoisted replied that it had to do with the construction of all three municipal
buildings and designing a detour around the buildings prior to the re-alignment by the County of FM 1378.
Mayor Pro Tern Byboth asked City Engineer Holsted if any portion of the detour lanes could be used in
the design of the buildings for permanent roads. Mr. Hoisted replied there was a small portion that may
be used in the future but the majority of the funding would be for temporary purposes. Mayor Mondy
asked if this detour was not approved would it stop the construction of the new municipal facilities. City
Engineer Hoisted replied that it would. Mayor Mondy stated that if that is correct and the
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architects/construction manager's estimates were correct, that would cost the City approximately$60,000.
per month in additional construction costs. City Manager Manson stated that if the City started
construction as scheduled this summer no additional construction costs would be incurred. She reported
that in conversations with Raymond Delgado there was not a problem with using County funding for the
detour, but realistically, we know that the project is under funded to the tune of $5 million dollars. She
explained that the County has not determined if they will go into reserve funds to pick up the under
funded amounts.
Councilman Porter reported that after speaking to staff, the cost of the design is the $62,000 which is fine,
but to build the actual detour road will be an additional $500,000. He asked City Manager Manson if the
tear out of the existing road was included in the $500,000 estimate. City Manager Manson reported that it
was not included. Councilman Porter commented that the cost would be at least $500,000 for an
approximate two year detour, which would compute to $20,000 per month. Mayor Mondy replied that
these are some choices that will need to be made in the near future. City Manager Manson noted that
the City had no idea how long it would be until the County would be ready to begin the realignment and
additional lanes for FM 1378. City Manager Manson reported that it would be at least 18 months minimum
to start construction of FM 1378 if the County decided to start tomorrow. She explained that the only other
options were to move the buildings or wait. "If we postpone City Hall there would still be some small
detour needed." Councilman Porter asked if the buildings could be relocated. City Manager Manson
replied that because of the terrain, it was not possible to move without a large amount of additional dirt
work. Councilman Porter asked if the dirt work would be less than the $500,000. Mayor Mondy replied
that it would be considerably more. He commented that If you spend $500,000, in my option, it would be
less costly than postponing the construction of the buildings. Councilman Porter stated that he was asked
by citizens about the temporary road and related costs and felt compelled to ask the question. City
Manager Manson reported that there may be some use for some of the temporary road once the
buildings were constructed. City Engineer Hoisted reported that this design, if approved, would provide
the best cost for the minimal amount of road required. Councilman Porter reported that he wanted the
citizens to know that this issue had been considered and there were reasons behind building the
temporary road in relation to the amount of cost to delay the construction of the buildings and additional
costs incurred. Councilman Young commented that there will be some very heavy traffic on this
temporary road. City Engineer Hoisted replied that part of the design will be to construct a road that will
withstand the heavy traffic for a long time. City Manager Manson noted that the City had no idea how long
the temporary road would have to suffice until the realignment was completed. City Engineer Hoisted
reported that he knew of temporary roads going on 20 years. He explained the design phase would take
around 30-60 days which will give Council time to consider the road. He commented that his
recommendation would be to approve and begin the design so to complete in a timeframe with the
construction schedule. Councilman Goss asked that the use of the temporary road be considered for the
fire lane or some other use. Councilman Porter asked that the road be considered in the parks design as
well. City Manager Manson replied that a revised Parks Master Plan was being considered and this could
be considered within that design.
Council Action
A motion was made by Councilman Porter, seconded by Councilman White to approve an
Engineering Services Agreement in the amount of $62,000 with Half Associates, Inc. for the
design of the FM 1378 detour. A vote was taken and passed 7-0.
6. Consider, and act upon, Resolution No. 2008-07(R) recommending a project funding
schedule for the 2007 Collin County Bond Projects. (C. Hoisted, City Engineer)
Staff Comments
City Engineer Hoisted addressed Council stating that the voters of Collin County approved the 2007
Collin County Bond Program in November 2007 which included five street projects in the City of Wylie.
Collin County has asked Cities to submit a project funding schedule identifying the funds needed for each
project over the next five years. The County expects to sell bonds yearly with the first issuance being in
the first quarter of this year. City Engineer Hoisted reviewed with Council the items requested and
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corresponding timelines. The projects include FM 1378 to Ballard Avenue; McMillen Road from McCreary
Road to FM 1378; Stone Road from Akin Lane to County Line Road; Ballard Avenue from Alanis to
County Line Road; and right-of-way acquisition for Park Blvd. from Parker Road to Spring Creek Parkway.
Council Action
A motion was made by Councilman White, seconded by Mayor Pro Tern Byboth to approve
Resolution No. 2008-07(R) recommending a project funding schedule for the 2007 Collin
County Bond Projects. A vote was taken and passed 7-0.
7. Consider, and act upon, Ordinance No. 2008-07 approving the petition of Oncor
Electric Delivery Company LLC to modify its lighting service tariff pursuant to the
Energy Policy Act of 2005. (M. Manson, City Manager)
Staff Comments
City Manager Manson addressed Council stating that Oncor Electric Delivery recently provided notice that
on December 11, 2007, a tariff revision was filed with the Public Utility Commission to close new mercury
vapor street light installations and implement a plan to replace mercury vapor fixtures when the fixture
and/or ballast must be changed. The PUC has since approved this tariff and Oncor is now seeking
approval of the proposed tariff from cities that have retained their original jurisdiction.
Representative/Council Discussion
Bill Harper, representing Oncor Electric Delivery Company LLC was on hand to answer questions for
Council. He reported that the mercury street lights would be replaced as they fail, not all changed at one
time. Mayor Mondy asked if the process would start immediately. Mr. Harper replied that it would start in
March of 2008. He explained that each type of light outage has different lead time for replacement. Mr.
Harper reported that the lamps would be more yellow in color as the replacements go in and would save
in energy efficiency. The use of high pressure sodium light replacement would save up to 40-50% in
electricity costs and would allow Oncor to build fewer power plants.
Council Action
A motion was made by Councilman Porter, seconded by Mayor Pro Tern Byboth to approve
Ordinance No. 2008-07 approving the petition of Oncor Electric Delivery Company, LLC so to
modify its lighting service tariff pursuant to the Energy Policy Act of 2005. A vote was taken
and passed 7-0.
8. Consider, and act upon, Ordinance No. 2008-08 endorsing the Settlement
Agreement between ACSC and Atmos regarding the Company's Statement of
Intent to increase rates and to approve tariffs that implement the terms of the
Settlement Agreement. (M. Manson. City Manager)
Staff Comments
City Manager Manson addressed Council stating that the City, along with 150 other cities served by
Atmos Energy Mid-Tex Division ("Atmos" or "Company"), were members of the Atmos Cities Steering
Committee ("ACSC"). Since October 2007, ACSC members have worked diligently with Atmos
representatives to explore options to address Atmos' latest request to increase rates by $52 million and to
resolve other outstanding issues. The ordinance and tariffs (Attachment B to the Ordinance) reflect the
agreement reached between ACSC and Atmos Mid-Tex to reduce Atmos' requested increase by more
than 80 percent ($10 million) and ensure that the Company is able to provide safe and reliable natural
gas service. The Settlement Agreement (Attachment A to the Ordinance) also provides rate certainty for
customers by resolving outstanding appeals, creates a new process for expedited rate review by the
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cities, eliminates piecemeal ratemaking, reimburses ACSC for rate case expenses associated with the
GRIP surcharge cases, and avoids the necessity of costly litigation. The ACSC Executive Committee
_._ recommends that ACSC members approve the Settlement Agreement. City Manager Manson reported
that this is the 7th increase request the City has received since 2004. She explained that this agreement
will control timeframes for future rate increase requests in the future.
Council Discussion
Councilman Goss asked if by approving this Ordinance the City was giving Atmos another increase to
build more infrastructures to get more customers to get more money. City Manager Manson replied that
utilities initiate rate increase to compensate for the increase in costs to operate. Part of this agreement
will allow only for annual requests for increase in rates that can be carefully scrutinized for accuracy. She
explained that part of what the steering committee has accomplished was to look carefully at the costs
requested and throw out those costs that did not pertain; making the increases much less. Mayor Mondy
stated that part of deregulation of utilities left no one watching over the costs associated with true
infrastructure and those requested for other items. Councilman Goss stated that the only thing he could
see of benefit to the City with the agreement was that Atmos was held to one increase per year. City
Manager Manson stated that rate increases will forever be an issue, but the steering committee has
allowed for much lower increases than initially requested by Atmos.
Council Action
A motion was made by Mayor Mondy, seconded by Councilman Porter to approve Ordinance
No. 2008-08 endorsing the Settlement Agreement between ACSC and Atmos regarding the
Company's Statement of Intent to increase rates and to approve tariffs that implement the terms
of the Settlement Agreement. A vote was taken and passed 5-2 with Mayor Mondy, Mayor Pro
Tem Byboth, Councilman Porter, Councilwoman Spillyards, and Councilman White voting for
and Councilman Goss and Councilman Young voting against.
9. Discussion regarding an amendment to Ordinance No. 98-16 (Consolidated Fees and
Charges/Fee Schedule Ordinance), Section 1.00 (Water and Sewer Rates and Fees,
Subsection 1.03 (Sewer Collection and Treatment Rates); providing for repealing,
savings and severability clauses; providing for an effective date of the ordinance and
providing for the publication of the caption of this ordinance. (L. Williamson,
Finance Director)
Staff Comments
Finance Director Williamson addressed Council stating that three years ago the City's Utility Billing
Department had 5 separate water routes. Each route had its own billing, collection and cutoff cycle. If
there was a problem with one cycle, the other cycles would get pushed back. As a consequence,
customers would get a bill that covered 4 weeks one month and 6 weeks the next month. This would
prompt calls from customers wanting to know why their water and sewer bill amounts had changed so
much. This was not good for customer service and it added greatly to the phone call traffic received in
Utility Billing.
Finance Director Williamson explained that with the introduction of the radio read meters, the time it takes
to read meters dropped from three weeks to 4 days. The radio read meters have eliminated the need to
hand input meter readings into the Incode system for City of Wylie water customers. This has allowed the
City to go to a single route for the entire city and created time between reading, collections and cut-offs to
work out problems without altering the monthly billing schedule. The whole city gets read at one time, all
bills go out at the same time each month and bills are due the same time each month. These changes
have provided marked improvement in customer service and at the same time reduced the work load,
allowing more time to deal with customer's issues. He noted that this new system would be ideal if the
City was the only water provider. He explained that since the current sewer fees are based on water
consumption, the city must get water meter readings from both East Fork and Wylie Northeast in order to
Minutes— February 12, 2008
Wylie City Council
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bill the sewer portion of the City's utility bill, for those customers This has been problematic over the years
because East Fork and Wylie Northeast do not read their meters at the same time as we do. This creates
a situation where the City is dependent on these water supply companies for timely utility bills.
He explained that additionally, these meter readings from Wylie Northeast and East Fork have to be
inputted into our system by hand, unlike our own customers where everything is done electronically. With
the large growth in new customers in East Fork, the problems and work load continue to grow. Many
times we do not get information on new customers or customers who have left the East Fork or Wylie
Northeast systems until long after the fact, creating more billing and collection problems. Numerous
efforts to remedy this situation have been made. We tried to negotiate an agreement with Wylie
Northeast for timely water meter readings and an agreement from them to cut off water if a customer did
not pay our sewer bill. The City was unable to get their board's approval. At this point, Wylie Northeast
started charging us for the meter readings. We currently pay about $4,300 per year for this information
from Wylie Northeast. He reported that the City then asked and received permission from the water
supply companies to allow our meter readers to read East Fork and Wylie Northeast meters of our sewer
customers. This worked well for keeping our billing cycle on schedule, but created confusion for the
customers because our sewer bill water consumption did not match the water consumption the customers
received on their bills from East Fork and Wylie Northeast.
Mr. Williamson stated that it was the Finance Department's opinion that the only viable solution to this
problem is to go to a flat rate for sewer customers that receive their water from East Fork and Wylie
Northeast. He explained that this is not a new precedent; in fact, the City of Heath uses a flat sewer
charge for all their customers precisely for the same reasons. Mr. Williamson reported that from a
business perspective, the advantages of this solution are three-fold. First, it would give the City total
control over the services that we provide our water and sewer customers. Second, it would eliminate the
hand entry of water meter readings from these two water supply companies and third, it would eliminate
customer confusion that the current system generates.
He reported that a flat fee would include both residential and one business customer. It would affect about
1,340 customers in East Fork and 339 customers in Wylie Northeast. The current average sewer bill in
these areas is $25.00 per month, with the minimum at $15.00 and the maximum at $37.82. We are
requesting approval to amend the existing ordinance to allow a flat sewer charge of $25.00-$26.00 for
those persons living in areas where the water is supplied by either Wylie Northeast or East Fork water
supply corporations. This rate should be incrementally raised over a number of years to $30.00 to shore
up the revenues on the sewer side of the Utility Fund.
Council/Staff Discussion
Mayor Mondy asked Finance Director Williamson why the City did not require the water district to bill for
both sewer and water. Mr. Williamson replied that East Fork did not have the staff to service the billing
process for both water and sewer. City Manager Manson commented that a flat rate sewer bill would
allow the customers to know what their sewer bill would be every month. Mayor Mondy asked why the
City would not provide a flat rate to all City utility customers. Mr. Williamson replied that from his
perspective, based on water and sewer consumption, it would be beneficial to the City to initiate a flat
sewer rate. He noted that last year with the tremendous amount of rain, water consumption was down
considerably which caused sewer charges to be down as well, based on water consumption. Yet the City
paid fixed rates for water to the North Texas Municipal Water District which is fixed at the beginning of the
year. He reported that last year the City lost $700,000 in sewer costs due to large amounts of rain and
reductions in water utilization. Mayor Mondy clarified that the City did not loose money but did not
generate the revenue but paid the set cost of water to the NTMWD. Councilman Goss stated that he was
concerned with the overuse of water with a flat rate. Mr. Williamson explained that sewer based water
consumption was capped at the $37.82. No additional fees are assessed over that maximum amount and
therefore have no direct impact on excessive water consumption. Mayor Pro Tern Byboth stated that he
would like to see the City go to a flat sewer rate across the board to all customers.
Direction from Council regarding an amendment to Ordinance No. 98-16 (Consolidated Fees)
Section 1.00 (Water and Sewer Rates, Subsection 1.03 (Sewer Collection and Treatment
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Wylie City Council
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Rates) was for Finance to calculate the revenues and expenditures and supply a comparison
with regard to placing a flat rate for sewer for all sewer customers versus East Fork and Wylie
Northeast customers only and report back to Council. No action was taken on this item.
READING OF ORDINANCES
Title and caption approved by Council as required by Wylie City Charter,Article 111, Section 13-D.
City Secretary Carole Ehrlich read the captions to Ordinances No.'s 2008-04, 2008-05, 2008-06,
2008-07 and 2008-08 into the official records.
Mayor Mondy convened into Executive Session at 7:39 p.m. citing Section 551.072 to deliberate
the purchase, exchange, lease to purchase Right of Way for FM 1378.
EXECUTIVE SESSION
Recess into Closed Session in compliance with Section 551.001, et.seq. Texas Government Code, to wit:
§§551.072 To deliberate the purchase, exchange, lease or value of real property
generally located at:
• Purchase of Right-Of-Way for F.M. 1378
Mayor Mondy reconvened into Open Session at 8:15 p.m.
RECONVENE INTO OPEN SESSION
Take any action as a result from Executive Session.
Council Action
A motion was made by Mayor Pro Tem Byboth, seconded by Councilman Goss to increase the
amount of funds for the acquisition of Right of Way for FM 1378, not to exceed $251,000; from
the current $231,000. A vote was taken and passed 7-0.
ADJOURNMENT
Council Action
With no further business before Council, Mayor Mondy adjourned the meeting at 8:18 p.m.
Consensus of Council was to adjourn.
F ",„
ohn Mondy, Mayor
ATTEST: �e
Car le Ehrlich, ity Secretary
Minutes— February 12, 2008
Wylie City Council
Page 12