01-25-2005 (City Council) Minutes MINUTES
Wylie City Council
Tuesday, January 25, 2005 — 6:00 p.m.
Wylie Municipal Complex— Council Chambers
2000 State Highway 78 North
Mayor John Mondy called the meeting to order at 6:00 p.m. Council Members present were: Mayor Pro Tern
Eric Hogue, Councilwoman Reta Allen, Councilman Chris Trout, Councilman Earl Newsom, Councilman
Merrill Young, and Councilman J. C.Worley.
Staff present were: City Manager, Mark B. Roath; Assistant City Manager, Mindy Manson; City Engineer,
Chris Hoisted; Planning & Zoning Director, Claude Thompson; Interim Finance Director, Ron Hutchison;
Police Chief, Jeff Butters; Public Services Director, Mike Sferra; Public Information Officer, Mark Witter,
and City Secretary, Carole Ehrlich.
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Mayor Pro Tern Hogue gave the invocation and Councilman Young led the Pledge of Allegiance.
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A. Approval of the Minutes from the regular City Council Meeting of January 11, 2005.
(C. Ehrlich, City Secretary)
B. Consider and act upon a Resolution authorizing the City Manager to enter into a contract with
Stewart Schwensen Productions in an amount not to exceed $43,000.00 for entertainment/staging
for the summer concerts and July 4th event. (R Diaz,Parks and Recreation)
C. Consider and act upon a Resolution authorizing the City Manager to enter into a contract with
Stewart Schwensen Productions in an amount not to exceed $12,000.00 for a fireworks show for
the July 4th event. (R Diaz,Parks and Recreation)
D. Consider and act upon a Resolution authorizing the City Manager to execute a contract for
Professional Services with Freese and Nichols, Inc. in the amount of $60,300.00 for the
development of a Storm Water fee for the City. (M. Sferra,Public Services Director)
E. Consider and act upon a Resolution authorizing the City Manager to execute an agreement with
U.S. ROW in the amount of$43,050.00 for right-of-way acquisition services for the Ballard Ave.
paving project. (C.Hoisted, City Engineer)
F. Consider and act upon a Resolution recommending the abandonment of right-of-way by TxDOT
along SH 78 at the intersection with Birmingham Avenue. (C. Hoisted, City Engineer)
Minutes—January 25,2005
Wylie City Council
Page 1
G. Consider and act upon a Preliminary Plat for Birmingham Ranch Addition. (C. Thompson,
Planning and Zoning Director)
Council Action
A motion was made by Councilman Worley, seconded by Councilman Young to approve the Consent
Agenda as presented. A vote was taken and passed 7-0.
C1 ZNS PARTIC 'ATIO .:::.,
Diane Barlow representing Comcast commented on several concerns pertaining to the proposed franchise
agreement with Verizon, asking Council to consider these concerns when approving the new franchise
agreement. Those included: Favored Nations Clause including the requirement that if a City moves into a
franchise with another cable company, the material provisions must be reasonably comparable with the
existing franchise. Ms. Barlow stated that Comcast appreciates the efforts the City has made to comply with
these requirements, noting most all of the concerns had been addressed by the City excluding a few minor
concerns. These included: Section 3.3, Cable service to public buildings (contribution in lieu of providing
these services) stating that because Comcast has been the current provider for public buildings, will the future
access be provided unfairly to one or the other franchise. Ms. Barlow suggested in lieu of free service, a grant
be provided by either franchise. Sec. 6.1.3 Interconnection (choice for citizens),jurisdiction and authority to
provide for cable companies to provide governmental access of the other franchise channels, whichever the
choice is for the entity provider. Ms. Barlow suggested that the agreement not include a requirement for one
franchise to carry broadcasting for public buildings provided by the other but leave this as an option. Some
other issues dealt with the combined services that would be provided by Verizon and who would have
jurisdiction.
City Manager Roath commented that both the cable franchise companies would be required to provide the public
building services and it would be the choice of the school/city to choose the service provider.
Mayor Mondy asked Mr. Roath if this franchise treated both providers the same. Mr. Roath stated that it did and
provided a choice to both citizens and government entities for service.
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1. Hold a Public Hearing and Consider and Act upon Ordinance No. # 2005-05, A Cable Television
Franchise Agreement between the City of Wylie and GTE Southwest, Inc. d/b/a Verizon
Southwest. (M.Roath, City Manager)
Staff Comments
City Manager Roath addressed Council stating that the proposed franchise agreement is for fifteen years and provides
that Verizon will offer cable television service to all residents in its service area, as defined by the agreement, and will
pay the City quarterly franchise fee payments of five percent of gross revenues. Verizon will provide dedicated access
for City and educational programming and has reserved a third access channel for future use. The agreement also
includes customer service requirements, which the current Comcast Agreement does not and finally the agreement
includes an emergency alert and liability insurance provisions. The proposed franchise agreement is competitively
neutral with the City's incumbent agreement (and in some cases better) and is comparable to other franchises being
adopted in other cities in the metroplex. Mr. Roath explained the hope with competitive cable services is to gain more
cable service, which the City receives revenue from and decrease the Satellite provider services, which the City receives
no revenue from. Mr. Roath explained that the issue of jurisdiction in regard to the Verizon agreement simply states that
Verizon is willing to provide interconnection, at their cost, access to public education stations broadcast by Verizon to
Comcast, if Comcast is willing to air those stations. Mr. Roath stated that he hoped that Comcast would be willing to
Minutes—January 25,2005
Wylie City Council
Page 2
provide the interconnection for broadcasting those educational stations. Mr. Roath stated that some other issues brought
up by Comcast have not been addressed by FCC at this time and would be addressed in the future.
Councilman Trout asked Mr.Roath if the city had the option of using both franchises for public broadcasting. Mr.Roath
stated yes the City could.
Verizon Franchise Representative/Council Discussion
Larry Manion, residing at 3003 Meadowview Court, Colleyville, Texas and representing Verizon addressed Council
stating that the agreement before them is for cable service provided by Verizon. He stated that Verizon had spent a great
deal of time with staff to insure that the agreement presented tonight was fair and equal and provide the City with a long
term agreement that was conducive to the City and the cable franchise. He went on to state that he was looking forward
to working with the City and its citizens in providing service to the community. Councilman Trout asked Mr.Manion is
there was a reason for the 15 year term in the agreement. Mr. Manion stated that the agreement currently between
Comcast and the City is a 25 year contract, expiring in 2016. He explained that Verizon was asking for a 15 year
agreement based on the cost of capitol investment. He explained that this 15 year term was a reasonable request for the
agreement stating that the fiber optics provided will last well over 15 years and into the future, he also explained that it
would be hard for Verizon to recoup the costs of capitol investment in the 15 year term.
Public Hearing
Mayor Mondy opened the public hearing at 6:44 p.m. asking anyone present wishing to address Council to
come forward, state their name and address and keep their comments to 3 minutes.
With no one present to address Council, Mayor Mondy closed the public hearing at 6:44 p.m.
Council Action
A motion was made by Mayor Pro Tern Hogue, seconded by Councilman Newsom to approve Ordinance
#2005-05 granting a Cable Television Franchise Agreement between the City of Wylie and GTE Southwest,
Inc. d/b/a Verizon Southwest. A vote was taken and passed 7-0.
2. Consider and act upon an Ordinance finding that the current rates of CoSery Gas Ltd. are
unreasonable; approving CoSery Gas Ltd's revised and uncontested tariffs; approving a rate
phase-in; authorizing continuation of deferral of carrying charges on plant held for future use;
recognizing CoServ's right to surcharge for facility relocation required by the City; setting the
effective date of new tariffs as February 1, 2005; finding the cities' rate case expenses reasonable;
severing the determination of the reasonableness of CoSery Gas Ltd's rate case expense issue until
March 1, 2005; adopting a base rate case moratorium; finding that any relief requested by CoSery
Gas Ltd not specifically granted herein is denied; adopting a most favored nations provision;
finding that the meeting at which this ordinance is passed is open to the public as required by law;
and providing for notice of this ordinance to CoSery Gas Ltd. (M. Manson,Asst City Manager)
Staff Comments
Assistant City Manager Ms. Manson addressed Council stating that this ordinance represents the City's exercise of its
original jurisdiction to evaluate the reasonableness of natural gas rates charged within city limits. The ordinance
approves CoSery Gas Ltd's ("CoServ") revised tariffs applicable to residential and commercial service in the City of
Wylie. The revised tariffs reflect the agreement reached between the Coalition of Cities, of which Wylie is a member,
and the Company regarding CoServ's Statement of Intent to adjust rates, and the Company's intention to begin charging
the same system-wide rate for all residential customers and all commercial customers. The ordinance also ensures that if
CoSery agrees to provide a more attractive rate to another city in the future, the City may exercise its option to
implement the rate also. The original increase proposed by CoSery was a 13%increase. The renegotiated and proposed
Minutes—January 25,2005
Wylie City Council
Page 3
increase presented tonight is 4.4%. CoSery rate case expenses are postponed due to the coalition not being able to come
to an agreement.
Council Discussion
Councilman Worley asked what area CoSery services in Wylie. Ms Manson stated that it was the Northwest section of
town. She explained that this provided 2,700 meters for residential and commercial.
Council Action
A motion was made by Councilman Worley, seconded by Mayor Pro Tern Hogue to approve Ordinance
#2005-06 finding that the current rates of CoSery Gas Ltd. are unreasonable; approving CoSery Gas Ltd's
revised and uncontested tariffs; approving a rate phase in; authorizing continuation of deferral of carrying
charges on plant held for future use; recognizing CoServ's right to surcharge for facility relocation required
by the City; setting the effective date of new tariffs as February 1, 2005; finding the cities' rate case expenses
reasonable; severing the determination of the reasonableness of CoSery Gas Ltd's rate case expense issue
until March 1, 2005; adopting a base rate case moratorium; finding that any relief requested by CoSery Gas
Ltd not specifically granted herein is denied; adopting a most favored nations provision; finding that the
meeting at which this ordinance is passed is open to the public as required by law; and providing for notice of
this ordinance to CoSery Gas ltd. A vote was taken and passed 7-0.
3. Consider and act upon a Resolution authorizing intervention before the Railroad Commission of
Texas in Gas Utilities Docket (GUD) no. 9530; authorizing participation with other cities served by
Atmos Energy Corporation, formerly known as TXU Gas Company, in Administrative and Court
proceedings involving a gas cost prudence review related to a filing made in September of 2004 as
required by the Final Order in GUD no. 8664; designating a representative of the City to serve on
a steering committee; requiring reimbursement of reasonable legal and consultant expenses.
(M. Manson,Asst City Manager)
Executive Summary
Assistant City Manager Ms.Manson addressed Council stating that the attached resolution will authorize intervention by
the city as a participant in a steering committee, appoint the City Manager as the City's representative on a Cities'
Steering Committee, and require Atmos/TXU Gas to reimburse the City reasonable costs associated with the City's
participation in GUD No. 9530 or any subsequent proceeding.
Council Action
A motion was made by Mayor Pro Tern Hogue, seconded by Councilman Worley to approve Resolution
#2005-09(R) authorizing Intervention before the Railroad Commission of Texas I Gas Utilities Docket
(GUD) No. 9530; authorizing participation with other cities served by Atmos Energy Corporation, formerly
known as TXU Gs Company, in Administrative and Court proceedings involving a gas cost prudence review
related to a filing made in September of 2004 as required by the Final Order in GUD no. 8664; designating a
representative of the City to be the City Manager to serve on a steering committee; requiring reimbursement
of reasonable legal and consultant expenses. A vote was taken and passed 7-0.
4. Consider and act upon a Resolution suspending the proposal by Atmos Energy Corporation to
implement interim GRIP Rate Adjustments for gas utility investment in 2003; authorizing
participation with other cities served by Atmos Energy Corp., a Mid-Tex Division, in a review and
inquiry into the basis and reasonableness of the proposed rate adjustments; authorizing
intervention in administrative and court proceedings involving the proposed GRIP Rate
Minutes—January 25,2005
Wylie City Council
Page 4
Adjustments; designating a representative of the City to serve on a steering committee; requiring
reimbursement of reasonable legal and consultant expenses. (M. Manson,Asst. City Manager)
Executive Summary
Assistant City Manager Ms. Manson addressed Council stating that the proposed GRIP rate increases would increase
annual revenues for Atmos/TXU Gas by $8.5 million. These increases are in addition to the $11.5 million annual
increase approved by the RRC in GUD No. 9400, and also in addition to the $10.1 million recovery sought by
Atmos/TXU Gas for rate case expenses related to GUD No. 9400. Atmos/TXU Gas has publicly stated that it expects to
experience annual cost savings of at least $40 million over the costs included in rates approved in GUD No. 9400 and
said savings are likely to greatly exceed the annual revenue requirement associated with any reasonable increases in
invested capital that form the basis of the requested GRIP rate increases. Atmos Energy Corporation has announced a
twenty percent increase in profits for its fiscal year ended September 30, 2004,and projects further increases in profits in
2005.
Council Action
A motion was made by Mayor Pro Tern Hogue, seconded by Councilman Young to approve Resolution
#2005-10(R) suspending the proposal by Atmos Energy Corporation to implement interim GRIP Rate
Adjustments for gas utility investment I 2003; authorizing participation with other cities served by Atmos
Energy Corp., a Mid-Tex Division, in a review and inquiry into the basis and reasonableness of the proposed
rate adjustment; authorizing intervention in administrative and court proceedings involving the proposed
GRIP Rate Adjustments; designating a representative of the City to be the City Manager to serve on a
Steering Committee; requiring reimbursement of reasonable legal and consultant expenses. A vote was taken
and passed 7-0.
5. Consider and act upon the adoption of an ordinance enacting a new code for the City of Wylie,
Texas and providing for the repeal of certain ordinances not included therein; providing a penalty
for the violation thereof; providing for the manner of amending such code; and providing when
such code and this ordinance shall become effective. (C. Ehrlich, City Secretary)
Staff Comments
City Secretary Ms. Ehrlich addressed Council stating that Chapter III, Section 14B of the Wylie City Charter states that
within three (3) years after adoption of this charter, and at least every five (5) years thereafter, the City Council shall
provide for the preparation of the codification of all general ordinances of the city. Every general ordinance enacted
subsequent to such codification shall be enacted as an amendment to the code. For the purposes of this section, general
ordinances shall be deemed to be those ordinances of a permanent or continuing nature which affect the residents of the
city at large. In 1997, the City of Wylie adopted the re-codification of the Wylie City Code. The Wylie City Code
presented tonight is a re-codification of the 1997 code. This book includes all ordinance approved from November of
1997 through November of 2004. The code, once approved will be available through Municipal Code Corporation on
our web page for easy access. Future supplements will be completed on an annual basis starting in 2006.
Council Action
A motion was made by Councilman Worley, seconded by Councilman Trout to approve Ordinance#2005-07
enacting a new code for the City of Wylie, Texas and providing for the repeal of certain ordinances not
included therein; providing a penalty for the violation thereof; providing for the manner of amending such
code; and providing when such code and this ordinance shall become effective. A vote was taken and passed
7-0.
Minutes—January 25,2005
Wylie City Council
Page 5
6. Consider and act upon an Ordinance repealing Wylie Ordinance Nos. 79-23, 95-2 and 95-3;
establishing a curfew for minors for the City of Wylie, Texas; creating offenses for minors, parents,
guardians of minor and business establishments for violating curfew regulations; defining terms
and providing defenses; providing for enforcement; providing for waiver of jurisdiction by the
court when required under the Texas Family Code. (J.Butters,Police Chief)
Staff Comments
Police Chief Butters addressed Council stating that the proposed ordinance contains the same definitions, curfew hours,
elements of offense, and defenses, as the old curfew ordinance. The proposed curfew ordinance requires that the curfew
ordinance be reviewed via public hearings every three years, as required by Section 370.002 of the Local Government
Code.
Council Action
A motion was made by Mayor Pro Tern Hogue, seconded by Councilman Young to approve Ordinance
#2005-08 repealing Wylie Ordinance Nos. 79-23, 95-2, and 95-3; establishing a curfew for minors parents,
guardians of minor and business establishments for violating curfew regulations; defining terms and
providing defenses; providing for enforcement; providing for waiver of jurisdiction by the court when
required under the Texas Family Code. A vote was taken and passed 7-0.
Public Hearing
7. Consider a recommendation to the City Council concerning a change in zoning from Agriculture
(A)to Planned Development District (PD) for single-family residential uses. Applicant is requesting
withdrawal of this request(ZC 2004-26). (C. Thompson,Planning and Zoning Director)
Council Comments
Mayor Mondy announced that Zoning Case 2004-26 had been withdrawn by the applicant.However,because the request
has been published and several neighboring property owners have responded, the Council's official acceptance of the
withdrawal is appropriate.
Public Hearing
Mayor Mondy opened the Public Hearing at 7:00 p.m.
With no one present to address Council, Mayor Mondy closed the Public Hearing at 7:00 p.m.
Council Action
A motion was made by Councilman Trout, seconded by Mayor Pro Tern Hogue to accept the withdrawal by
the applicant for Zoning Case 2004-26. A vote was taken and passed 7-0.
M.:8:CAPTION:A:PVR0000 'CONIAg :: ::lrattDOk
City Secretary Carole Ehrlich read captions to Ordinance#2005-05, 2005-06, 2005-07, and 2005-08 into the
official record.
Minutes—January 25,2005
Wylie City Council
Page 6
;;WORK SESSIOl ; .
Mayor Mondy called the Joint Work Session to order at 7:10 p.m. with Mayor Pro Tern Hogue,
Councilwoman Allen, Councilman Trout, Councilman Worley, Councilman Young, and Councilman
Newsom present.
Planning & Zoning Board Chairman Chris Seeley called the Joint Work Session to order at 7:10 p.m. with
members Red Byboth, Dave Hennessy, Dennis Larson, Kathy Spillyards, and Eric Alexander present and
Don Hughes absent.
Joint Work Session with P&Z Commission to discuss:
• Woodbridge South (Herzog Development Corporation,Don Herzog)
A brief presentation was given to the joint members by Don Herzog, to allow council and commission to
provide direction on a proposal by Herzog Development Corporation for the 351 acre Woodbridge South.
Zoning Case#2004-24. Dissatisfaction with the small lot and house sizes, especially 6.0 lots and townhouses,
encouraging somewhat larger lots and houses if not the 1 ac/26 recommended by the Comprehensive Plan. 63
acres of the property is scheduled for annexation, and the zoning case will go to Planning and Zoning and
City Council at a later date.
• Rice Tract(Skorburg Company,Ryan Betz)
_ Mr. Ryan Betz representing Skorberg Company presented a proposal for the 185 acre Braddock Place/Rice
Tract. Major differences between this offering and the previous proposal are that some of the lots have been
reduced to 7,200 and houses reduced to 2,100 sq. ft. Betz reported that the proposed open space/park land
contained no floodplain and the percentage of lots 10,000 sq. ft. and above was increased to 60% of the
project. Mayor Mondy pointed out that the school is an elementary not located at the perimeter of the tract
and the high school discussed earlier will not be located here but on Skorburg's other tract.
ADJOURN ENT..
With no further business before Council or the Planning and Zoning Commission,the meeting was adjourned
at 8:20 p.m.
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Minutes—January 25,2005
Wylie City Council
Page 7