Agenda

AGENDA

CITY COUNCIL WORK SESSION
City of Garland

REMOTE MEETING

Monday, August 31, 2020
6:00 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.

NOTICE: Due to the COVID-19 emergency, and pursuant to Section 551.125 of the Texas Government Code and the executive orders of Governor Greg Abbott suspending provisions of the Texas Government Code and other applicable laws of the State regarding normal open meetings, the City Council will hold this meeting by internet/telephonic remote means.

The meeting will be broadcast by webinar or telephone at the following URL:

https://garlandtx.zoom.us/webinar/register/WN_vrLCnZD1TsK6ZHsGhmvUYg

Registration for the online meeting is required. The meeting will be recorded and will be available for viewing the next day at www.garlandtx.gov.

For those without internet access to the meeting, a dial-in option is available. The toll-free numbers are:

877-853-5247
888-788-0099

Additionally, the meeting may be accessed by phone at the following number:

346-248-7799
470-250-9358
470-381-2552

The Meeting ID is: 981 9251 2630

For participants (online and by phone) who wish to speak, a public comments period is provided as the first item on the agenda. If you desire to address the City Council on a matter that is posted on this agenda, please be prepared to do so at the beginning of the meeting. After the City Council has begun its discussion of the agenda, you will not be recognized to speak. The public comments portion of the meeting is provided for citizen comments. You are invited to offer a comment or make a statement on any item on the agenda. However, please bear in mind that offering comments should not be done in the form of posing questions. Generally, due to legal restrictions, the City Council is not able to answer questions during the public comments portion of the agenda. Your comments must relate to an item on this agenda - non-germane comments are not in order.

If an Executive Session is included as part of the agenda for this meeting, the Executive Session will be conducted by teleconference between and among the members of the City Council and relevant City staff. Public access to that call is prohibited by State law.

COUNCIL HOUSE RULES

1. Decisions based on issues, goals and vision.	9. Follow goals, principles and action agenda.
2. Do not take things personal.	10. Decide, vote and move on.
3. Project a positive attitude.	11. Avoid ambushes - Council or staff.
4. Focus on issues, not on the person.	12. Talk to staff before meetings.
5. Be prepared to discuss issues.	13. Vote our convictions, but be willing to compromise "What is best for Garland."
6. Maintain decorum.	14. Follow Roberts Rules of Order consistently.
7. Keep your sense of humor.	15. Agree to disagree.
8. Honor and respect each other; accept each other as individuals.	16. Be open and honest.

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.		Public Comments on Work Session Items Persons who desire to address the City Council on any item on the Work Session agenda are allowed three minutes to speak. Speakers are taken only at the beginning of the meeting, other than invited testimony. Speakers are grouped by Work Session item and will be taken in the order of the Work Session agenda. Speakers must submit to the City Secretary a completed speaker’s card before the beginning of the meeting. Speaker cards will not be accepted after the Mayor calls the meeting to order. Speaker cards are available in the lobby, at the visitor’s side of the Work Session Room, and from members of staff. Speakers are limited to addressing items on the Work Session agenda – any item relating to a Regular Session agenda item should be addressed at the Regular Session and any item not on an agenda may be addressed during the open microphone at the end of the Regular Session.

2.		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.

3.		Written Briefings:

	a.	Discretionary Service Agreement with Oncor for the Burying of Oncor's Facilities along Rosehill Road from Bobtown Road to IH-30 Council is requested to authorize the City Manager to execute a Discretionary Service Agreement with Oncor. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the September 15, 2020 Regular Meeting.

	b.	Tax Roll Amendment Council is requested to consider an ordinance amending the tax roll by $71,549.86. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the September 15, 2020 Regular Meeting.

	c.	Atmos Settlement Agreement Council is requested to consider approval of the Settlement Agreement with Atmos Energy Mid-Tex Division (“Atmos”) 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 15, 2020 Regular Meeting.

	d.	Consider an ordinance to Issue Tax Notes, Series 2020 Council is requested to approve an ordinance authorizing the issuance of tax notes of approximately $25 million. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the September 15, 2020 Regular Meeting.

4.		Verbal Briefings:

	a.	COVID-19 Response Update and Further Actions Staff will provide an update to Council and ask for Council direction, if needed, on various matters related to COVID-19 and actions being taken by the City.

	b.	Garland Power and Light Outage Texting: Status Update Feature Council will be updated about the enhancement to GP&L’s power outage text reporting process to include status updates.

	c.	Amendment of the Downtown/Forest-Jupiter TIF Boundaries At the request of Deputy Mayor Pro Tem Robert Vera and Mayor Scott LeMay, Council is requested to consider amending the boundaries of the Downtown/Forest-Jupiter TIF Zone to include Montgomery Park within the TIF.

	d.	Budget Discussions Continue Council discussions on the 2020-21 Budget.

	e.	Ad Hoc Task Force At the request of Council Member David Gibbons, and Mayor Pro Tem Robert John Smith, the Mayor proposes to appoint an ad hoc task force comprised of members of the City Council and the Plan Commission to study the efficacy of the City’s current methods of providing notice for upcoming zoning change requests. Although the City’s current methods meet legal standards and must contain certain elements in order to comply with State law, the question is how effective those notices are in conveying to the average citizen the nature of the request and whether new or alternative measures could be adopted to be more helpful to interested citizens. Under Council policy, the Mayor may appoint ad hoc committees with the concurrence of the City Council. An informal concurrence is sufficient to affirm the Mayor’s proposal.

5.		Discuss Appointments to Boards and Commissions

		Council Member Jim Bookhout Bruce Bishop - Board of Adjustment CorSharra Jackson - Community Multicultural Commission Blanca Sanchez - Cultural Arts Commission Dennis Garcia - Environmental and Community Advisory Board Linda Waters - Library Board Molly Bishop - Parks and Recreation Board John O'Hara - Plan Commission Michael Sferra - Property Standards Board Hal Peterson - Senior Citizens Advisory Board Kathleen Hansrote - Tax Increment Finance District - Downtown Sal Liberto - Tax Increment Finance #3 - Medical District Kim Thiehoff - Tax Increment Finance - South James Hall Jr. - Unified Building Standards Commission

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.		Council will move into Executive Session

		EXECUTIVE SESSION AGENDA 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:



		The City Council will adjourn into executive session pursuant to Section 551.071 of the Texas Government Code to discuss pending or 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 relating to the North Texas Municipal Water District rate case and related matters.

		The City Council will adjourn into executive session pursuant to Sec. 551.072 of the Texas Government Code to discuss the purchase, exchange, lease or value of real property generally located northeast of Castle Drive, Pleasant Valley Road, and Miles Road.

8.		Adjourn

GARLAND
POLICY REPORT


City Council Work Session Agenda		Work Session Item 3.c.
Meeting Date:	08/31/2020
Item Title:	Atmos Settlement Agreement
Submitted By:	Matt Watson, Finance Director
Strategic Focus Areas:	Sound Governance and Finances

ISSUE
Council is requested to consider approval of the Settlement Agreement with Atmos Energy Mid-Tex Division (“Atmos”) 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 15, 2020 Regular Meeting.
BACKGROUND
The City, along with 171 other Mid-Texas cities served by Atmos, is a member of the Atmos Cities Steering Committee (“ACSC”). In 2007, ACSC and Atmos 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 in 2018. On March 31, 2020, Atmos filed a rate request pursuant to the RRM Tariff adopted by ACSC members. Atmos claimed that its cost-of-service in a test year ending December 31, 2019, entitled it to additional system-wide revenues of $141.2 million. However, application of the standards set forth in ACSC’s RRM Tariff required Atmos to reduce its request to $136.3 million, $98.7 million of which would be applicable to ACSC members. After further review by the ACSC’s consultants, the ACSC's Executive Committee negotiated a settlement whereby Atmos would receive an increase of $90 million from ACSC member cities. The impact of the settlement on average residential rates is an increase of $5.15 on a monthly basis, or 9.9 percent. The increase for average commercial usage will be $15.48 or 6.56 percent.
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 (both from a consumer rate impact perspective and from a ratemaking perspective) than the GRIP process. Given Atmos claim that its historic cost of service should entitle it to recover $141.2 million in additional system-wide revenues, the RRM settlement at $90 million for ACSC Cities reflects substantial savings to ACSC Cities. ACSC’s consultants produced a report indicating that Atmos had justified increased revenues for ACSC Cities of at least $81 million. Settlement at $90 million (equivalent to $81 million with a two-month delay) 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 November 1, 2020. New rates become effective December 1, 2020.

Attachments
Resolution