Agenda

AGENDA

CITY COUNCIL WORK SESSION
City of Garland
Work Session Room, City Hall
William E. Dollar Municipal Building
200 North Fifth Street
Garland, Texas
September 04, 2018
5:30 p.m.

DEFINITIONS:

Written Briefing: Items that generally do not require a presentation or discussion by the staff or Council. On these items the staff is seeking direction from the Council or providing information in a written format.

Verbal Briefing: These items do not require written background information or are an update on items previously discussed by the Council.

Regular Item: These items generally require discussion between the Council and staff, boards, commissions, or consultants. These items are often accompanied by a formal presentation followed by discussion.

[Public comment will not be accepted during Work Session
unless Council determines otherwise.]

NOTICE: The City Council may recess from the open session and convene in a closed executive session if the discussion of any of the listed agenda items concerns one or more of the following matters:

(1) Pending/contemplated litigation, settlement offer(s), and matters concerning privileged and unprivileged client information deemed confidential by Rule 1.05 of the Texas Disciplinary Rules of Professional Conduct. Sec. 551.071, Tex. Gov't Code.

(2) The purchase, exchange, lease or value of real property, if the deliberation in an open meeting would have a detrimental effect on the position of the City in negotiations with a third person. Sec. 551.072, Tex. Gov't Code.

(3) A contract for a prospective gift or donation to the City, if the deliberation in an open meeting would have a detrimental effect on the position of the City in negotiations with a third person. Sec. 551.073, Tex. Gov't Code.

(4) Personnel matters involving the appointment, employment, evaluation, reassignment, duties, discipline or dismissal of a public officer or employee or to hear a complaint against an officer or employee. Sec. 551.074, Tex. Gov't Code.

(5) The deployment, or specific occasions for implementation of security personnel or devices. Sec. 551.076, Tex. Gov't Code.

(6) Discussions or deliberations regarding commercial or financial information that the City has received from a business prospect that the City seeks to have locate, stay, or expand in or near the territory of the City and with which the City is conducting economic development negotiations; or to deliberate the offer of a financial or other incentive to a business prospect of the sort described in this provision. Sec. 551.087, Tex. Gov't Code.

(7) Discussions, deliberations, votes, or other final action on matters related to the City’s competitive activity, including information that would, if disclosed, give advantage to competitors or prospective competitors and is reasonably related to one or more of the following categories of information:

generation unit specific and portfolio fixed and variable costs, including forecasts of those costs, capital improvement plans for generation units, and generation unit operating characteristics and outage scheduling;
bidding and pricing information for purchased power, generation and fuel, and Electric Reliability Council of Texas bids, prices, offers, and related services and strategies;
effective fuel and purchased power agreements and fuel transportation arrangements and contracts;
risk management information, contracts, and strategies, including fuel hedging and storage;
plans, studies, proposals, and analyses for system improvements, additions, or sales, other than transmission and distribution system improvements inside the service area for which the public power utility is the sole certificated retail provider; and
customer billing, contract, and usage information, electric power pricing information, system load characteristics, and electric power marketing analyses and strategies. Sec. 551.086; Tex. Gov't Code; Sec. 552.133, Tex. Gov’t Code]


1.		Consider the Consent Agenda A member of the City Council may ask for discussion or further information on an item posted as a consent agenda item on the next Regular Meeting of the City Council. The Council Member may also ask that an item on the posted consent agenda be pulled from the consent agenda and considered for a vote separate from consent agenda items on the regular agenda. All discussions or deliberations on this portion of the work session agenda are limited to posted agenda items and may not include a new or unposted subject matter.

2.		Written Briefings:

	a.	Tax Roll Amendment Council is requested to consider an amendment to the tax roll removing uncollectable ad valorem taxes as recommended by generally accepted accounting principles. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the September 18, 2018 Regular Meeting.

	b.	Sale of Property - 1504 E. IH-30 Council is requested to approve the sale of 1504 E. IH-30 to Notewise Investments, LLC and provide an executed deed without warranty. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the September 18, 2018 Regular Meeting.

	c.	Atmos Settlement Agreement Council is requested to consider approval of the Settlement Agreement with Atmos Energy Mid-Tex Division ("Atmos Mid-Tex") and the resulting rate change under the Rate Review Mechanism (RRM) tariff. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the September 18, 2018 Regular Meeting.

3.		Verbal Briefings:

	a.	Home Improvement Incentive Program Council Member David Gibbons, Chair of the Development Services Committee, will provide a committee report on the following: Home Improvement Incentive Policy

	b.	Transportation, Mobility and Infrastructure Committee Mayor Pro Tem Rich Aubin, Chair of the Transportation, Mobility and Infrastructure Committee, will provide a committee report on the following items: meeting with Texas Department of Transportation regarding transportation issues affecting Garland request by TEX-21 to host regional conference

	c.	Update on progress and implementation of proposed 2019 Bond Referendum Representatives from Kimley-Horn and City Staff will provide an update to the Council regarding public input, community meetings, anticipated timelines and other information related to the proposed 2019 Bond Program.

	d.	Development Services Committee Facade Program Recommendation City Council assigned the the development of a citywide commercial facade improvement program to the Development Services Committee in May of 2017. Staff prepared a draft to assist the Development Services Committee with the preparation of an ordinance or resolution establishing a new commercial facade program. Façade improvement programs are incentive programs created to encourage property owners and businesses to improve the exterior appearance of their buildings and storefronts. Simple changes such as the removal of non-historic materials, repairs, or a new paint job that calls attention to the building’s original architectural may signal positive change and motivate other property owners to perform similar improvements in their buildings.

	e.	Skate Park Funding and Context The skate park project was approved by the Garland voters in the 2004 Bond referendum in the amount of $500,000. Staff is providing the City Council with a timeline of funding requests reflecting activity between 2004 and 2017 that led to the current budget of $1,150,000. Additionally, staff will review the recommended project delivery method and program requirements for the project as well as provide context for the project in relation to the other active projects in Central Park.

4.		Regular Items:

	a.	Discuss Council Member Robert Vera's request to attend TEX-21 in California in September Council is requested to consider Council Member Robert Vera's request to attend TEX-21 in California September 19-22.

	b.	Consider Council Member Jerry Nickerson's request to attend the P3 Federal Conference in Washington, D.C. Council is requested to consider Council Member Jerry Nickerson's request to attend the P3 Federal Conference in Washington, D.C.

	c.	Request City Council authorization for the Garland Housing and Neighborhood Development Department to prepare a HUD Environmental Review on a single-family residence located at 2914 Forest Park in Garland on behalf of the Plano Housing Authority for use with their Section 8 Housing Program Council is requested to consider authorizing the Garland Housing and Neighborhood Development Department to prepare a HUD Environmental Review on a single-family residence located at 2914 Forest Park in Garland on behalf of the Plano Housing Authority. If authorized, the Plano Housing Authority will incorporate the use of the property into their Section 8 Housing Program.

5.		Discuss Appointments to Boards and Commissions

		Mayor Lori Barnett Dodson Bettye Haynes - Library Board

		Council Member David Gibbons Aaron Miller - Unified Building Standards Commission

		Council Member Deborah Morris Robert Duckworth - TIF 3 Steven Johnson - Community Multicultural Commission John Spencer - Property Standards Board

		Council Member Jim Bookhout Sal Liberto - TIF 3 Kathleen Hansrote - TIF Downtown

		Mayor Pro Tem Rich Aubin Gail Belton - Senior Citizens Advisory Committee Betty Roberts - Citizens Environmental and Neighborhood Advisory Committee

6.		Announce Future Agenda Items A member of the City Council, with a second by another member, or the Mayor alone, may ask that an item be placed on a future agenda of the City Council or a committee of the City Council. No substantive discussion of that item will take place at this time.

7.		Adjourn

GARLAND POLICY REPORT

City Council Work Session Agenda		Work Session Item 2.a.
Meeting Date:	09/04/2018
Item Title:	Tax Roll Amendment
Submitted By:	Corey Worsham, Tax Administrator
Strategic Focus Areas:	Sound Governance and Finances

ISSUE
Annually, the City Council is asked to consider an amendment to the tax roll removing uncollectable ad valorem taxes as recommended by generally accepted accounting principles. Although the tax roll is reduced by the action, collection efforts will continue unless the cost of these efforts exceed the potential revenues.
OPTIONS
The City Council May: Consider an ordinance during the September 18, 2018 City Council meeting to amend the tax roll by $93,797.52, or Do not amend the City's tax roll
RECOMMENDATION
Consider an amendment to the tax roll to reflect the uncollected ad valorem taxes. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the September 18, 2018 Regular Meeting.
BACKGROUND
Article IX, Section 3 of the City Charter authorizes the City Council to amend the tax roll for uncollectible ad valorem taxes. Furthermore, the Texas Property Tax Code section 33.05 limits the collection of real property taxes past 20 years and 10 years for business personal property. Amendment of the tax roll is necessary to meet generally accepted accounting principles, avoid overstating accounts receivables and avoid the potential risk of an unfavorable audit opinion.
CONSIDERATION
Amendments to the real property tax roll would include an amount of $19,538.12 for tax year 1997. Amendments to the business personal property roll include an amount of $74,259.40 for tax years 2011-2013. The total amended amount is $93,797.52. Amounts are requested for write-off only after they have remained uncollected for a period of at least four years (two years for bankruptcy settlements). Additionally, the City's collection attorney's, Perdue, Brandon, Fielder, Collins & Mott LLP have performed extensive collection efforts in order to recover the debt.

Attachments
2018 Tax Roll Amendment
Ordinance - 2018 Tax Roll Amendment

GARLAND POLICY REPORT

City Council Work Session Agenda		Work Session Item 2.b.
Meeting Date:	09/04/2018
Item Title:	Sale of Property - 1504 E. IH-30
Submitted By:	Corey Worsham, Tax Administrator
Strategic Focus Areas:	Vibrant Neighborhoods and Commercial Centers Sound Governance and Finances

ISSUE
The City of Garland has received an unsolicited offer from Notewise Investments, LLC related to the purchase of City owned property obtained through a Sheriff’s Sale. This property is located at 1504 E. IH-30. Notewise Investments, LLC has presented an offer of $81,577.32 for the property. The purchaser has also agreed to pay the post-judgment taxes at closing. The post-judgment taxes are approximately $43,422.68 which will result in the total amount received at closing of approximately $125,000. The City of Garland will receive sale proceeds of $1,500 for maintenance and $30,071.85 in taxes (includes post-judgment taxes of $10,549.71).
OPTIONS
The City Council May: Approve the sale of 1504 E. IH-30 to Notewise Investments, LLC and provide an executed deed without warranty, or Deny the offer presented by Notewise Investments, LLC
RECOMMENDATION
Staff recommends that the City Council accept the offer and sell the property to Notewise Investments, LLC. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the September 18, 2018 Regular Meeting.
BACKGROUND
The property was struck off to the City of Garland at the Dallas County Sheriff's Sale on February 5, 2008. In accordance with Section 34.05 of the Texas Property Tax Code, the offer meets the minimum bid requirements and does not require the consent of other taxing entities. If the sale is approved, the City of Garland will accept payment on behalf of all entities and disperse all sale proceeds.
CONSIDERATION
This property has been held by the City of Garland since 2008. Pursuant to Section 34.05 of the Texas Property Tax Code it may be resold to a private entity with the approval of the governing body. The sale of this property further supports vibrant neighborhoods, commercial centers, sound governance and sound finances.

Attachments
Resolution -1504 E. IH-30
Deed - 1504 E. IH-30
Offer - 1504 E. IH-30
Map and Picture - 1504 E. IH-30

GARLAND POLICY REPORT

City Council Work Session Agenda		Work Session Item 2.c.
Meeting Date:	09/04/2018
Item Title:	Atmos Settlement Agreement
Submitted By:	Matt Watson, Finance Director
Strategic Focus Areas:	Reliable, Cost Efficient Utility Services Sound Governance and Finances

ISSUE
Council is requested to consider approval of the Settlement Agreement with Atmos Energy Mid-Tex Division (“Atmos Mid-Tex”) and the resulting rate change under the Rate Review Mechanism (RRM) tariff.
OPTIONS
Approve the Settlement Agreement Do not approve the Settlement Agreement
RECOMMENDATION
Unless otherwise directed by Council, this item will be scheduled for formal consideration at the September 18, 2018 Regular Meeting.
BACKGROUND
The City, along with 171 other Mid-Texas cities served by Atmos Energy Corporation, Mid-Tex Division (“Atmos Mid-Tex” or “Company”), is a member of the Atmos Cities Steering Committee (“ACSC”). In 2007, ACSC and Atmos Mid-Tex settled a rate application filed by the Company pursuant to Section 104.301 of the Texas Utilities Code for an interim rate adjustment commonly referred to as a GRIP filing (arising out of the Gas Reliability Infrastructure Program legislation). That settlement created a substitute rate review process, referred to as Rate Review Mechanism (“RRM”), as a substitute for future filings under the GRIP statute. Since 2007, there have been several modifications to the original RRM Tariff. The most recent iteration of an RRM Tariff was reflected in an ordinance adopted by ACSC members earlier this year. On or about April 1, 2018, the Company filed a rate request pursuant to the RRM Tariff adopted by ACSC members. The Company claimed that its cost-of-service in a test year ending December 31, 2017, entitled it to additional system-wide revenues of $42.0 million. Application of the standards set forth in ACSC’s RRM Tariff required Atmos to reduce its request to $27.4 million. After review of the consultants’ report, the Company offered to settle for a system-wide increase of $25.9 million. Following further negotiations, ACSC’s Executive Committee agreed to recommend a system-wide rate increase of $24.9 million. That increase when allocated to ACSC members results in an increase of $17.8 million. The Effective Date for new rates is October 1, 2018. Also, Atmos generated proof that the rate tariffs attached to the Resolution will generate $24.9 million in additional revenues on a system-wide basis. That proof is attached as Attachment 1 to this Policy Report. ACSC consultants have agreed that Atmos’ Proof of Revenues is accurate. Finally, given the fact that ACSC demanded that Atmos reflect reduced federal income taxes in its cost-of-service, as reflected in the RRM Tariff adopted earlier this year, Atmos reduced its rates in March. The rate increase associated with the Resolution is largely offset by the lowered federal income tax rates, such that out-of-pocket expense to consumers should be roughly the same under new rates as what was experienced by consumers last winter. A bill impact comparison is attached as Attachment 2.
CONSIDERATION
The Legislature’s GRIP process allowed gas utilities to receive annual rate increases associated with capital investments. The RRM process has proven to result in a more efficient and less costly methodology (both from a consumer rate impact perspective and from a ratemaking perspective) than the GRIP process. Given Atmos Mid-Tex’s claim that its historic cost of service should entitle it to recover $42 million in additional system-wide revenues, the RRM settlement at $24.9 million reflects savings of $17.1 million. ACSC’s consultants produced a report indicating that Atmos had justified increased revenues of at least $21.7 million. According to the ACSC consultants, the settlement at $24.9 million is fair and reasonable. The ACSC Executive Committee consisting of city employees of 18 ACSC members urges all ACSC members to pass the Resolution before September 30, 2018. New rates become effective October 1, 2018.

Attachments
Attachment 1
Attachment 2
Ordinance

GARLAND POLICY REPORT

City Council Work Session Agenda		Work Session Item 4.c.
Meeting Date:	09/04/2018
Item Title:	Request City Council authorization for the Garland Housing and Neighborhood Development Department to prepare a HUD Environmental Review on a single-family residence located at 2914 Forest Park in Garland on behalf of the Plano Housing Authority for use with their Section 8 Housing Program
Submitted By:	Mona Woodard, Neighborhood Services Administrator
Strategic Focus Areas:	Vibrant Neighborhoods and Commercial Centers

ISSUE
The City of Plano Housing Authority is seeking City Council approval to authorize the City of Garland Housing and Community Services Department to author a HUD required Environmental Review Report and to be named the Responsible Entity for a City of Plano Housing Authority real property purchase of a single-family residence located at 2914 Forest Park in Garland. The City of Plano Housing Authority's intent is to purchase and hold the property for use in their Section 8 rental housing program or sell the property to a low-moderate income family as defined by HUD.
OPTIONS
Authorize the City of Garland Housing and Community Development Department to draft the Environmental Report. Do not authorize the City of Garland Housing and Community Development Department to draft the Environmental Report.
BACKGROUND
The Plano Housing Authority received proceeds from the sale of public housing units within the City of Plano. The Department of Housing and Urban Development (HUD) required funds received from the real estate sale be used to acquire, renovate and sell 20 residential units located within a 25-mile radius from Plano Housing Authoritie's office located at 1740 G Avenue in Plano, Texas . The Plano Housing Authority is pursuing the purchase of a single family property located at 2914 Forest Park, Garland TX 75040. The property would be rehabilitated and placed on the market, through the Multiple Listing System (MLS), for sale to a low-income family as defined by the HUD income limits. The potential buyer would be required to secure mortgage financing through private sources. Prior to closing a real estate transaction utilizing HUD funds, HUD requires the preparation of an Environmental Review by the designated Responsible Entity. Because the property the Plano Housing Authority is attempting to purchase is located within the City of Garland, the City of Garland is considered responsible for certifying that the data provided is acceptable and would certify that all environmental issues have been addressed and cleared in accordance with HUD's programs and the Statutes.