HomeMy WebLinkAbout2016-05-24 Agenda with BackupCit of Denton City Hall
Y 215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
0,F-"N1`0N Meeting Agenda
City Council
Tuesday, May 24, 2016 3:00 PM Work Session Room
After determining that a quorum is present, the City Council of the City of Denton, Texas will convene
in a Work Session on Tuesday, May 24, 2016 at 3:00 p.m. in the Council Work Session Room at City
Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered:
1. Work Session Reports
A. ID 16-658 Receive a report, hold a discussion, and give staff direction regarding a request on
behalf of the Denton County Behavioral Health Leadership Team with backbone
support from United Way of Denton County in collaboration with the Dallas VA
North Texas Health Care System for use of a portion of City Hall West.
Attachments: Exhibit 1 - Denton County Behavioral Health Leadership Team VA Medical Ceni
Following the completion of the Work Session, the City Council will convene in a Closed Meeting to
consider specific items when these items are listed below under the Closed Meeting section of this
agenda. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open
Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, or as
otherwise allowed by law.
1. Closed Meeting:
A. ID 16-632 Deliberations Regarding Certain Public Power Utilities: Competitive Matters -
Under Texas Government Code Section 551.086.
Receive a presentation from Denton Municipal Electric staff ("DME") regarding
public power competitive and financial matters pertaining to plans, strategies,
opportunities, and developments for generation improvements to the DME system;
discuss and deliberate strategies regarding same; discuss and deliberate
opportunities and strategies for the City to acquire purchased power and enter into
agreements regarding the same, in order to meet its future energy needs. Discuss,
deliberate and provide Staff with direction. [TMPA]
ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED
MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE
WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL
ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE
WITH THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE `PUBLIC
POWER EXCEPTION'). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A
CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV'T. CODE,
§551.001, ET SEQ. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN
MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING
ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS
OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §551.071-551.086 OF THE
TEXAS OPEN MEETINGS ACT.
City ofDenton Page 1 Printed on 5/20/2016
City Council Meeting Agenda May 24, 2016
Special Called Meeting of the City of Denton City Council at 4:00 p.m. in the Council Work Session
Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be
considered:
1. PLEDGE OF ALLEGIANCE
A. U.S. Flag
B. Texas Flag
"Honor the Texas Flag — I pledge allegiance to thee, Texas, one state under God, one and
indivisible."
2. ITEMS FOR INDIVIDUAL CONSIDERATION
A. ID 16-642 Consider approval of a resolution by the City of Denton, Texas ("City"), approving
a change in the rates of Atmos Energy Corporation, Mid -Tex Division ("Atmos") as
a result of a settlement between Atmos and the Atmos Texas Municipalities
("ATM") under the rate review mechanism; finding the rates set by the attached
tariffs to be just and reasonable; finding that the meeting complied with the Open
Meetings Act; requiring delivery of the resolution to the company and legal counsel;
and declaring an effective date.
Attachments: Exhibit 1 - Resolution
Exhibit 2 - Tariffs
Exhibit 3 - Proof of Revenues
Exhibit 4 - Pensions
B. ID 16-665 Consider a request for an exception to the Noise Ordinance for the purpose of the
Last of the Rubber Gloves live music event to be held outdoors in the fenced yard of
Rubber Gloves Rehearsal Studio (RGRS), located at 409 E. Sycamore St., on
Friday, June 3, Saturday, June 4, and Sunday, June 5, 2016, from 1:00 p.m. to 2:00
a.m. RGRS specifically requested an exception to increase sound levels from 70 to
75 decibels and for an extension for hours from 1:00 p.m. to 2:00 a.m.
Attachments: Exhibit 1 - Request for Exception to Noise Ordinancepdf
3. PUBLIC HEARINGS
A. ID 16-634 Hold a public hearing and consider adoption of an ordinance of the City Council of
the City of Denton, Texas ordaining the City's participation in the Texas Enterprise
Zone Program pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas
Government Code ("Act"), providing tax incentives, designating a liaison for
communication with the interested parties, and nominating WinCo Foods, LLC to
the Office of the Governor, Economic Development and Tourism (OOGEDT)
through the Economic Development Bank (the `Bank") as an Enterprise Project
("Project").
Attachments: Exhibit 1- Draft Ordinance
4. CONCLUDING ITEMS
City ofDenton Page 2 Printed on 512012016
City Council Meeting Agenda May 24, 2016
A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City
Council or the public with specific factual information or recitation of policy, or accept a proposal
to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the
Texas Open Meetings Act, provide reports about items of community interest regarding which no
action will be taken, to include: expressions of thanks, congratulations, or condolence; information
regarding holiday schedules; an honorary or salutary recognition of a public official, public
employee, or other citizen; a reminder about an upcoming event organized or sponsored by the
governing body; information regarding a social, ceremonial, or community event organized or
sponsored by an entity other than the governing body that was attended or is scheduled to be
attended by a member of the governing body or an official or employee of the municipality; or an
announcement involving an imminent threat to the public health and safety of people in the
municipality that has arisen after the posting of the agenda.
CERTIFICATE
I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of
Denton, Texas, on the day of , 2016 at o'clock (a.m.) (p.m.)
CITY SECRETARY
NOTE: THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM IS ACCESSIBLE IN
ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL
PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED
AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE
CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR
THE DEAF (TDD) BY CALLING 1 -800 -RELAY -TX SO THAT A SIGN LANGUAGE
INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE.
City ofDenton Page 3 Printed on 5/20/2016
City Hall
City of Denton 215 E. McKinney St.
- Denton, Texas 76201
www.cityofdenton.com
,
DENTON
File #: ID 16-658, Version: 1
Legislation Text
Agenda Information Sheet
DEPARTMENT: City Manager's Office
CM/ ACM: George C. Campbell
Date: May 24, 2016
SUBJECT
Receive a report, hold a discussion, and give staff direction regarding a request on behalf of the Denton County
Behavioral Health Leadership Team with backbone support from United Way of Denton County in
collaboration with the Dallas VA North Texas Health Care System for use of a portion of City Hall West.
BACKGROUND
The VA North Texas Health Care System currently operates the Community Based Outpatient Clinic (CBOC)
in Denton, however only 400 sq. ft. of the facility is dedicated to mental health services. With a large number of
veterans seeking mental health services in Denton County, the VA estimates that a 3,000 person mental health
services gap/opportunity exists among current VA enrollees due to limited facility space. Utilizing space within
a City of Denton facility would result in an opportunity for the City to engage with the VA and provide
immediate access to mental health services to citizens and others who may be travelling to Dallas and/or Ft.
Worth for services.
Gary Henderson, CEO and President of United Way of Denton County, will make a brief presentation to the
Council regarding this item. Representatives from United Way of Denton County, Denton County Behavioral
Leadership Team, the Veterans workgroup, and the VA will be in attendance.
STRATEGIC PLAN RELATIONSHIP
The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision.
The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public
Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and
Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council
agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Safe, Liveable & Family -Friendly Community
Related Goal: 4.5 Provide support to citizens in need through social service agencies and
programs
EXHIBITS
1. Denton County Behavioral Health Leadership Team VA Medical Center Engagement Outline
City of Denton Page 1 of 2 Printed on 5/20/2016
povveied by I_egivt9i IN
File #: ID 16-658, Version: 1
Respectfully submitted:
Jessica Rogers
Assistant to the City Manager
City of Denton Page 2 of 2 Printed on 5/20/2016
povveied by I_egist9i I;,
i
UnitedWay
of Denton County, Inca
UnitedWayDenton.org
Goal: Expand Capacity of Veterans Behavioral Health Services in Denton County
• There are currently 46,000 Veterans in Denton County. Approximately 8,000 are Iraq and
Afghanistan War Veterans suffering from PTSD or depression, with approximately 50% seeking
help. We know a majority of those residing in Denton County are traveling to Dallas and other
areas to receive such services. We also know that an individual diagnosed with both PTSD and
depression is 29 times more likely to commit suicide than a person not suffering from these
conditions.
• The VA has committed to increasing capacity of mental health services in our community if we
can provide them with a 5,000 sq. ft. facility in the interim pending their new facility. The current
space at the Community Based Outpatient Clinic (CBOC) in Denton for mental health services is
only 400 sq. ft. (See page 2 for proposed space and staff plan).
• The VA estimates that based on current projected data a 3,000 person mental health services
gap/opportunity exists among current VA enrollees due to limited facility space. In 2015, the VA
reported 1,800 Denton County Veterans received mental health services in the Denton CBOC,
while 4,800 Denton County Veterans were in need of mental health services.
• Utilizing space within the City of Denton, would result in an opportunity for the City to engage
with the VA and provide immediate access to mental health services to citizens and others who
maybe travelling to Dallas and Ft. Worth for services.
• Additional benefits for the City of Denton and others include the VA adding approximately $3.3
million in professional mental health services/staff to the community.
• This partnership would also allow for potential research partnerships/internships with UNT/TWU
and the VA for Health and Mental Health.
For additional information see page 3 for an overview of the Denton County Behavioral Health Leadership
Team. If further assistance is needed please contact:
Gary Henderson
President and CEO
United Way of Denton County Inc.
(940) 566-5851 ext. 101
a_ry@unitedwaydenton.or
1
United Way
of Denton County, Inc.
UnitedWayDenton.org
VAMC Expansion Schematic (29 employees)
Area Quantity Space Total
Storage
1
150
150
Flex Office
3
80
240
Conference/Group
1
150
150
LCSW
4
100
400
Telehealth Tech
4
64
256
Telehealth Work Room
8
80
640
MH Psychologist
4
100
400
MH Psychiatrist
4
100
400
MH RN
4
100
400
MAS Clerk
4
64
256
Group Treatment Room
2
150
300
Space Total (NSF)
3592
Total Department( NSUF)
4310.4
Note: 64 SF are cubicles
Space for 29 Employees
*note this does not include space for restrooms, common space, and hallways*
PA
i
UnitedWay
of Denton County, Inca
UnitedWayDenton.org
Denton County Behavioral Health Leadership Team (DCBHLT) Overview
DCBHLT Vision: Comprehensive behavioral health for every person in Denton County.
DCBHLT Mission:
The Denton County Behavioral Health Leadership Team will advocate and facilitate a collaborative person -
centered behavioral health system to repair and restore lives:
• Ensure behavioral health services are available to meet the needs of all
• Assess data for continuous outcome measurements
• Prioritize data driven recommendations
• Provide a continuum of care
Statement of Purpose: The DCBHLT is tasked with Purpose:
The Denton County Behavioral Health Leadership Team (DCBHLT) is tasked to convene as a policy making
team to improve the planning, coordination, oversight, and implementation required to create systems
change, for behavioral health services in Denton County.
Veteran Workgroup Deliverables:
1. Work in partnership and collaboration with the Denton County Strategic Planning Committee to
develop a comprehensive strategic plan for the DCBHLT.
2. Develop recommendations to the DCBHLT to ensure system level change based on evidenced based
programs and practices.
3. Serve as advocates for Veterans in Denton County and provide recommendations to increase the
capacity of Veteran -related Post Traumatic Stress (PTS) / Traumatic Brain Injury (TBI) treatment programs
in Denton County, ensure Veterans have access to the programs, and increase awareness of the programs.
4. Monitor and evaluate PTS/TBI programs through interaction with Veterans and feedback provided to
ensure the programs are achieving the desired result.
3
City Hall
City of Denton 215 E. McKinney St.
- Denton, Texas 76201
www.cityofdenton.com
DEN, `
ON
File #: ID 16-632, Version: 1
Legislation Text
Agenda Information Sheet
SUBJECT
Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code
Section 551.086.
Receive a presentation from Denton Municipal Electric staff ("DME") regarding public power competitive and
financial matters pertaining to plans, strategies, opportunities, and developments for generation improvements
to the DME system; discuss and deliberate strategies regarding same; discuss and deliberate opportunities and
strategies for the City to acquire purchased power and enter into agreements regarding the same, in order to
meet its future energy needs. Discuss, deliberate and provide Staff with direction. [TMPA]
City of Denton Page 1 of 1 Printed on 5/20/2016
povveied by I_egivt9i IN
City Hall
City of Denton 215 E. McKinney St.
- Denton, Texas 76201
www.cityofdenton.com
,
DENTON
Legislation Text
File #: ID 16-642, Version: 1
Agenda Information Sheet
DEPARTMENT: Legal
CM/ ACM: Anita Burgess, City Attorney
Date: May 24, 2016
SUBJECT
Consider approval of a resolution by the City of Denton, Texas ("City"), approving a change in the rates of
Atmos Energy Corporation, Mid -Tex Division ("Atmos") as a result of a settlement between Atmos and the
Atmos Texas Municipalities ("ATM") under the rate review mechanism; finding the rates set by the attached
tariffs to be just and reasonable; finding that the meeting complied with the Open Meetings Act; requiring
delivery of the resolution to the company and legal counsel; and declaring an effective date.
ATMOS TEXAS MUNICIPALITIES
The City is a member of the Atmos Texas Municipalities (ATM). The ATM group was organized by a number
of municipalities served by Atmos and has been represented by the law firm of Herrera & Boyle, PLLC
(through Mr. Alfred R. Herrera). ATM also retained the services of a consulting firm, Utilitech, Inc. (Mr. Mike
Brosch and Mr. Steve Carver) to assist in reviewing an application submitted by the Atmos Energy -Mid -Tex
Division (Atmos) that seeks to increase its rates and change its rates. Herrera & Boyle, PLLC and Utilitech,
Inc. have participated in prior rate cases involving Atmos and have extensive knowledge and experience in rate
matters affecting Atmos' rates, operations, and services.
HISTORY OF PRIOR RATE INCREASES
Increase Under Previous Version of RRM (Approved October 2010)
On March 15, 2010, Atmos requested an increase of $70.1 million in its system -wide rates. ATM and Atmos
settled on an increase of $27 million for prospective rates.
Increase Under Previous Version of RRM (Approved September 2011)
On April 1, 2011, Atmos filed a request to increase rates system -wide by $15.6 million. ATM and Atmos
agreed to not increase base rates and permitted Atmos to recover $6.6 million for the steel pipe replacement
program.
General Rate Case (Approved December 2012)
In January 2012, Atmos sought an increase of about $49.1 million. Ultimately, the ATM cities and Atmos were
City of Denton Page 1 of 4 Printed on 5/20/2016
povveied by I_egivt9i IN
File #: ID 16-642, Version: 1
not able to reach agreement on an increase and Atmos filed an appeal to the Railroad Commission of Texas.
The Railroad Commission approved an increase of about $24.1 million, representing an increase in revenue of
about 7%.
Prior Increase Under Current RRM (July 2013)
In the summer of 2013, Atmos and ATM entered into an agreement that approved a revised Rate Review
Mechanism (RRM). The RRM approved in the summer of 2013 is the third iteration of that rate -setting
mechanism.
On about July 15, 2013, Atmos submitted a request to increase rates under the current RRM. Atmos requested
an increase in rates on a system -wide basis of $22.7 million, which is an increase of about 5%. Following a
series of settlement negotiations between Atmos' experts and ATM's experts, Atmos agreed to an increase of
$16.6 million, an increase in revenue of about 3.7%.
Prior Increase Under the RRM (June 2014) - Atmos Filed Appeal With the Railroad Commission - Gas
Utility Docket (GUD) No. 10359:
On about February 28, 2014, Atmos filed its second request to increase rates under the current iteration of the
RRM (the "2014 RRM") and requested a system -wide increase of about $45.6 million (9.2% increase in
revenue). ATM's consultants' preliminary assessment indicated that Atmos warranted at most an increase of
$26.6 million. A settlement was not reached, the ATM cities denied Atmos' proposed increase, and Atmos
appealed ATM's denial of its revenue increase to the Railroad Commission. On appeal Atmos revised its
request downward from $45.6 million to $43.8 million. Atmos implemented the full rates on June 1, 2014,
subject to refund. The Commission held a hearing on September 3, 2014, and after the hearing, the hearing
examiner proposed an increase of $42.9 million, that is, only about $860,000 less than Atmos requested.
Prior Increase Under the RRM (May 2015):
On February 27, 2015, Atmos submitted its third application under the current RRM seeking a system -wide rate
increase of $28.7 million ("2015 RRM"), which equates to an increase of about 5.6%. After review of Atmos'
application, the Railroad Commission's proposal for decision in GUD No. 10359, and the Hearing Examiner's
PFD for the 2014 RRM, ATM's Special Counsel and consultants concluded that if the matter were appealed to
the Railroad Commission, the result would be an increase closer to about $23 million.
Ultimately, ATM and Atmos settled the appeal related to Atmos' proposed increase for Atmos' 2014 RRM, and
Atmos' 2015 RRM, for a combined increase in rates of about $65.69 million, comprised on an increase of
about $43.82 million for its 201%4 RRM and about $21.87 million for its 2015 RRM.
Pending 2016 RRM (May 2016):
On about March 1, 2016, Atmos submitted its fourth application under the current RRM seeking a system -wide
rate increase of $35.4 million ("2016 RRM"), which equates to an increase of about 6.04%. After review of
Atmos' application, the Railroad Commission's prior rulings, and Atmos' responses to requests for information
submitted to Atmos by ATM's Special Counsel and consultants, ATM's consultants concluded that Atmos
merited an increase of about $10.8 million. ATM's Special Counsel presented its findings to Atmos, with
which Atmos disagrees. Following negotiations with Atmos, Atmos agreed to an increase of $29.9 million,
which equates to an increase of about 5.5%.
City of Denton Page 2 of 4 Printed on 5/20/2016
povveied by I_egist9i I;,
File #: ID 16-642, Version: 1
OPTIONS FOR CITY ACTION REGARDING ATMOS' 2016 RRM:
The item requiring City action is Atmos' 2016 RRM. At this juncture the ATM cities' options are as follows:
Option 1. To deny Atmos' requested increase under the 2016 RRM of $35.4 million and approve no
increase;
Option 2. To deny Atmos' requested increase and approve an increase of no more than $10.8 million for
its 2016 RRM, based on ATM's consultants' preliminary report;
Option 3. To take no action and allow Atmos' proposed increase of $35.4 million to go into effect; or
Option 4. To approve a settlement agreement that resolves the 2016 RRM with an increase in rates of $29.9
million.
Note that under Option 1 and Option 2, Atmos has the right to appeal the ATM cities' decisions to the Railroad
Commission of Texas and pending such an appeal has the right to implement its proposed increase of $35.4
million effective June 1, 2016, subject to refund if the Commission's review later finds a lower amount is
appropriate. Atmos would very likely file an appeal to the Railroad Commission should the ATM cities
approve an increase less than $29.9 million.
In an appeal to the Commission, Atmos would in all likelihood argue that the costs of appeal should be borne
by only those cities that "caused" the appeal. Given the Commission's tendency to err in favor of utilities,
Atmos would likely prevail. An appeal would increase the burden on ratepayers by adding rate case expenses,
which would include both ATM's and Atmos' costs of preparing and prosecuting the appeal, and the costs of a
hearing.
RECOMMENDATION:
After a series of negotiations with Atmos, ATM's Special Counsel recommends resolving the 2016 RRM with
an increase of $29.9 million.
If the ATM Cities reject Atmos' settlement offer, Atmos would likely appeal the cities' decision to the Railroad
Commission. While there are a number of contested issues whose outcome is uncertain in an appeal, based on
the Railroad Commission's history and prior decisions, ATM's Special Counsel and consultants are of the
opinion that the Railroad Commission would reach a result not materially different than the settlement amount
of $29.9 million, and perhaps approve a higher increase.
Therefore, because of the risks of a litigated outcome, including the cost of litigation at the Railroad
Commission, ATM's special counsel advises the ATM cities to accept a settlement that increases Atmos'
revenue by about $29.9 million over the current revenue Atmos is collecting.
An increase under the 2016 RRM of about $29.9 million over the base -rate revenue Atmos is currently
collecting, represents an increase of about 5.5% in non -gas revenue and the impact on rates on an average
customer's bill would be as follows:
City of Denton Page 3 of 4 Printed on 5/20/2016
povveied by I_egist9i I;,
File #: ID 16-642, Version: 1
Customer
Class
Current Bill
Proposed
Bill
Difference
% Increase
with Gas
Cost
% Increase
without Gas
Cost
Residential
$52.01
$53.27
$1.26
2.43%
5.05%
Commercial
$267.17
$270.98
$3.81
1.43%
5.03%
Industrial
$5,184.05
$5,286.77
$102.72
1.98%
5.41%
Transportation
$3,666.82
$3,769.54
$102.72
2.80%
5.41%
The rate schedules to accomplish the increase are attached to the Resolution approving the increase.
The City should take action as soon as possible but no later than May 31, 2016.
STRATEGIC PLAN RELATIONSHIP
The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision.
The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public
Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and
Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council
agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Organizational Excellence
Related Goal: 1.1 Manage financial resources in a responsible manner
EXHIBITS
1. Resolution
2. Attachment A -Tariffs
3. Attachment B -Proof of Revenues
4. Attachment C -Pensions
City of Denton Page 4 of 4 Printed on 5/20/2016
povveied by I_egist9i I;,
s:Alegal\our documents\resolutions\16\resolution-atmos midtex-2016 =-approving settlement-051116.docx
RESOLUTION NO.
A RESOLUTION BY THE CITY OF DENTON, TEXAS ("CITY"), APPROVING A
CHANGE IN THE RATES OF ATMOS ENERGY CORPORATION, MID-TEX DIVISION
("ATMOS") AS A RESULT OF A SETTLEMENT BETWEEN ATMOS AND THE ATMOS
TEXAS MUNICIPALITIES ("ATM") UNDER THE RATE REVIEW MECHANISM;
FINDING THE RATES SET BY THE ATTACHED TARIFFS TO BE JUST AND
REASONABLE; FINDING THAT THE MEETING COMPLIED WITH THE OPEN
MEETINGS ACT; REQUIRING DELIVERY OF THE RESOLUTION TO THE COMPANY
AND LEGAL COUNSEL; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the City of Denton, Texas ("City") is a regulatory authority under the Gas
Utility Regulatory Act "GURA") and under § 103.001 of GURA has exclusive original
jurisdiction over Atmos Energy Corporation — Mid -Tex Division ("Atmos") rates, operations,
and service of a gas utility within the municipality; and
WHEREAS, the City has participated in prior cases regarding Atmos as part of a
coalition of cities known as the Atmos Texas Municipalities ("ATM"); and
WHEREAS, pursuant to the Rate Review Mechanism ("RRM") for 2016 filed with the
City on or around March 1, 2016 for a proposed system -wide increase of $35.4 million; and
WHEREAS, experts representing ATM have been analyzing data furnished by Atmos
and interviewing Atmos' management regarding the RRM; and
WHEREAS, the Steering Committee of ATM and its counsel recommend approval of the
attached tariffs, set forth as Attachment A, along with the proof of revenues set forth as
Attachment B, which results in an increase in Atmos' revenue of $29.9 million, and Attachment
C, setting forth the beginning balance for purposes of determining pension and other post -
employment benefits to be recovered in the next RRM filing; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. The findings set forth in this Resolution are hereby in all things approved.
SECTION 2. The amended tariffs in Attachment A are hereby adopted to become
effective on June 1, 2016.
SECTION 3. To the extent any Resolution previously adopted by the City Council is
inconsistent with this Resolution, it is hereby superseded.
SECTION 4. The meeting at which this Resolution was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 551.
s:Alegal\our documents\resolutions\16\resolution-atmos midtex-2016 =-approving settlement-051116.docx
SECTION 5. If any one or more sections or clauses of this Resolution is judged to be
unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining
provisions of this Resolution and the remaining provisions of the Resolution shall be interpreted
as if the offending section or clause never existed.
SECTION 6. This Resolution shall become effective from and after its passage.
SECTION 7. A copy of this Resolution shall be sent to Atmos Mid -Tex, care of
Christopher Felan, Vice President of Rates and Regulatory Affairs, Atmos Energy Corporation,
5420 LBJ Freeway, Suite 1600, Dallas, Texas 75240 and to Mr. Alfred R. Herrera, Herrera &
Boyle, PLLC, 816 Congress Avenue, Suite 1250, Austin, Texas 78701.
PASSED AND APPROVED this the day of , 2016.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
Page 2
CHRIS WATTS, MAYOR
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
R — RESIDENTIAL SALES
Customer Charge per Bill
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
APPLICABLE TO:
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
PAGE: 12
Application
Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured
through one meter.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Bill
$ 19.10 per month
Rider CEE Surcharge
$ 0.02 per month'
Total Customer Charge
$ 19.12 per month
Commodity Charge — All Ccf
$0.11378 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
'Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1, 2015.
3 -Attachment A -Tariff - l -Residential
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RRC Tariff No:
RATE SCHEDULE:
C — COMMERCIAL SALES
Customer Charge per Bill
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
APPLICABLE TO:
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
PAGE: 13
Application
Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured
through one meter and to Industrial Customers with an average annual usage of less than 30,000 Ccf.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Bill
$ 41.75 per month
Rider CEE Surcharge
$ 0.02 per month'
Total Customer Charge
$ 41.77 per month
Commodity Charge — All Ccf
$ 0.08494 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
1 Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1, 2015.
4 -Attachment A -Tari ff-2 -Commercial
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
I — INDUSTRIAL SALES
Customer Charge per Meter
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
APPLICABLE TO:
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
PAGE: 14
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 3,500 MMBtu per day
for all natural gas provided at one Point of Delivery and measured through one meter. Service for
Industrial Customers with an MDU equal to or greater than 3,500 MMBtu per day will be provided at
Company's sole option and will require special contract arrangements between Company and Customer.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and MMBtu charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Meter
$ 738.00 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.3096 per MMBtu
Next 3,500 MMBtu
$ 0.2267 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0486 per MMBtu
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
5 -Attachment A -Tariff -3 -Industrial
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RRC Tariff No:
RATE SCHEDULE:
I — INDUSTRIAL SALES
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
APPLICABLE TO:
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
PAGE: 15
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Rate I, Customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
5 -Attachment A -Tariff -3 -Industrial
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
T — TRANSPORTATION
Customer Charge per Meter
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
APPLICABLE TO:
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
PAGE: 16
Application
Applicable, in the event that Company has entered into a Transportation Agreement, to a customer
directly connected to the Atmos Energy Corp., Mid -Tex Division Distribution System (Customer) for the
transportation of all natural gas supplied by Customer or Customer's agent at one Point of Delivery for
use in Customer's facility.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts
and quantities due under the riders listed below:
Charge
Amount
Customer Charge per Meter
$ 738.00 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.3096 per MMBtu
Next 3,500 MMBtu
$ 0.2267 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0486 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part (b) of Rider GCR.
Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Imbalance Fees
All fees charged to Customer under this Rate Schedule will be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
Monthly Imbalance Fees
Customer shall pay Company the greater of (i) $0.10 per MMBtu, or (ii) 150% of the difference per MMBtu
between the highest and lowest "midpoint" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative
Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds
10% of Customer's receipt quantities for the month.
6 -Attachment A -Tariff -4 -Transportation
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RRC Tariff No:
RATE SCHEDULE:
T — TRANSPORTATION
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
APPLICABLE TO:
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
PAGE: 17
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
Agreement
A transportation agreement is required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Rate T, customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
6 -Attachment A -Tariff -4 -Transportation
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER:
WNA - WEATHER NORMALIZATION ADJUSTMENT
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
APPLICABLE TO:
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 11/01/2016
PAGE: 41
Provisions for Adjustment
The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized
by the cities of the Mid -Tex Division service area for determining normalized winter period revenues shall
be adjusted by an amount hereinafter described, which amount is referred to as the "Weather
Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature
sensitive residential and commercial bills based on meters read during the revenue months of November
through April. The five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls.
Computation of Weather Normalization Adjustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent
per Ccf by the following formula:
(HSFi x (NDD-ADD) )
WNAFi = Ri
(BLi + (HSFi x ADD) )
Where
i = any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or
classification expressed in cents per Ccf
Ri = Commodity Charge rate of temperature sensitive sales for the ith schedule or
classification.
HSFi = heat sensitive factor for the ith schedule or classification divided by the
average bill count in that class
NDD = billing cycle normal heating degree days calculated as the simple ten-year
average of actual heating degree days.
ADD - billing cycle actual heating degree days.
Bli = base load sales for the ith schedule or classification divided by the average
bill count in that class
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
WNA; = WNAF x q;j
Where qg is the relevant sales quantity for the jth customer in ith rate schedule.
7 -Attachment A-Tariff-5-WNA
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER:
WNA — WEATHER NORMALIZATION ADJUSTMENT
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
APPLICABLE TO:
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 11/01/2016
PAGE: 42
Base Use/Heat Use Factors
Weather Normalization Adiustment (WNA) Report
On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx-wna, in
Excel format, a Weather Normalization Adjustment (WNA) Report to show how the company calculated
its WNAs factor during the preceding winter season. Additionally, on or before June 1 of each year, the
company files one hard copy and an Excel version of the WNA Report with the Railroad Commission of
Texas' Gas Services Division, addressed to the Director of that Division.
7 -Attachment A-Tariff-5-WNA
Residential
Commercial
Base use
Heat use
Base use
Heat use
Weather Station
Ccf
Ccf/HDD
Ccf
Ccf/HDD
Abilene
10.09
0.1392
98.01
0.6440
Austin
11.21
0.1551
203.36
0.8564
Dallas
13.72
0.2048
189.83
0.9984
Waco
9.89
0.1411
129.75
0.6695
Wichita
11.49
0.1506
122.35
0.5967
Falls
Weather Normalization Adiustment (WNA) Report
On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx-wna, in
Excel format, a Weather Normalization Adjustment (WNA) Report to show how the company calculated
its WNAs factor during the preceding winter season. Additionally, on or before June 1 of each year, the
company files one hard copy and an Excel version of the WNA Report with the Railroad Commission of
Texas' Gas Services Division, addressed to the Director of that Division.
7 -Attachment A-Tariff-5-WNA
0
LL
a�
a -2
o
000
m m c
U
tL IL LL
A
� O O
O
m m
O O m
W
N
N
O O
OG
Q.O
c
N
ON
� m
W
V tp
m n
O V
U r rn N
U O
CD r
N N
O
Q
h r(p OJ
OJ 0 �
h O tp
N MMO>o M �prir m
N o. oc t C� 0 N N m m
Mmcov u�
D M N
N o
o
K a v u
nmmovocorco
o 0
a
.E c rcdm���voim N� M
N L?t n r (D O N N m D
N U o M O M M M
N O> O J N N N N
u1 Q C
� O —
� a` vs ea
c
c
� N N h M V tm 47 O ifJ
O O Ul v mr(D N. -N
'-om000
U L 0 O O O
U o 0
m
m oD O
� a
_ O
0
N
O
C r L N N N
O
F-
O� o
OI m
m L E V E U U U
L U m 'a
U y c y c c c
mo 0 0
E momUR$$$
m U
N Y C N C
E E t0 o `o o
D a s m U U U
o d O O h
3 UU 2s as oo as
N N OO� NWINn MrMMO MNNOtD NONC DOVMO ^rOO� Nt�o ONdrf
OJ ` N c14 1'
N
V3
N O. O O H 00 0 0 0
U O O O
c o O O
Ot
m fA ER W fA U3M 69 to
L
U
�-
N NMCON M MSO fD
D J O M W m N N 0
� U `-o om000
m
0
v
m
c
m
K
O
N m m m
U O� 2)
m m o m 4 01 21 EP
at n m m r
o L E U U U U
c vdi C �p o 2).o o o
4 '� omU m.na
m U_ – L E E E
o O. m m U U V>
C C y y N C C N
a �w�o E E m o o 0
L ww E E m U U U
m m o o
KKUUa3M of x5
E
Z
LL
U OI
o
0 0
m�
AO
¢ df rN M[YNOr mO>O N Mit �(J (Or CO O>O �" N M QNtDr NQ7
TJS
c0 Nt0
V
>
E v N a
O
oo m
n
W
N
2
W
a
c
N
W
U
¢
ami
U
W
N
N
O
Z W
N
N
r
O
ON
N
1 W
o s;;
'o
Z
0
LLJ
w�W
L
~Ot0
m h N
O
F g
o d
U
a W
c c
E
ULL z
m
CL
Y a
(�¢Z
L L
UU
N m m
R'H W
z o X
'off
0010
U— o
O N
WN W
°o. °o.
a E y�
o
N O Y
0 IL H
o 0
as
d a m
KUcZ
h r(p OJ
OJ 0 �
h O tp
N MMO>o M �prir m
N o. oc t C� 0 N N m m
Mmcov u�
D M N
N o
o
K a v u
nmmovocorco
o 0
a
.E c rcdm���voim N� M
N L?t n r (D O N N m D
N U o M O M M M
N O> O J N N N N
u1 Q C
� O —
� a` vs ea
c
c
� N N h M V tm 47 O ifJ
O O Ul v mr(D N. -N
'-om000
U L 0 O O O
U o 0
m
m oD O
� a
_ O
0
N
O
C r L N N N
O
F-
O� o
OI m
m L E V E U U U
L U m 'a
U y c y c c c
mo 0 0
E momUR$$$
m U
N Y C N C
E E t0 o `o o
D a s m U U U
o d O O h
3 UU 2s as oo as
N N OO� NWINn MrMMO MNNOtD NONC DOVMO ^rOO� Nt�o ONdrf
OJ ` N c14 1'
N
V3
N O. O O H 00 0 0 0
U O O O
c o O O
Ot
m fA ER W fA U3M 69 to
L
U
�-
N NMCON M MSO fD
D J O M W m N N 0
� U `-o om000
m
0
v
m
c
m
K
O
N m m m
U O� 2)
m m o m 4 01 21 EP
at n m m r
o L E U U U U
c vdi C �p o 2).o o o
4 '� omU m.na
m U_ – L E E E
o O. m m U U V>
C C y y N C C N
a �w�o E E m o o 0
L ww E E m U U U
m m o o
KKUUa3M of x5
E
Z
LL
U OI
o
0 0
m�
AO
¢ df rN M[YNOr mO>O N Mit �(J (Or CO O>O �" N M QNtDr NQ7
TJS
ATMOS ENERGY CORP., MID-TEX DIVISION
PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL
TEST YEAR ENDING DECEMBER 31, 2015
Post -Retirement Supplemental Post -Retirement
Line Pension Account Medical Plan Pension Account Executive Benefit Medical Plan
No. Description I Plan ("PAP") ("FAS 106") 1 Plan ("PAP") Plan ("SERP") ("FAS 106")
Fiscal Year 2016 Towers Watson Report (excluding Removed Cost
1 Centers)
$ 5,101,680 $
2,896,450 $
7,840,683 $
150,433 $
4,466430
2 Allocation to Mid -Tex
40.56%
40.56%
71.52%
100.00%
71,52%
FY16 Towers Watson Benefit Costs (excluding Removed Cost Centers)
3 Allocated to MTX (Ln 1 x Ln 2)
$ 2,069,299 $
1,174,833 $
5,607,955 $
150,433 $
3,194,561
4 O&M and Capltai Allocation Factor
100.00%
100.00%
100.00%
100.00%
100.00%
FY16 Towers Watson Benefit Costs To Approve (excluding Removed Cost
5 Centers) (Ln 3 x Ln 4)
$ 2,069,299 $
1,174,833 $
5,607,955 $
150,433 $
3,194,561 $
12,197,081
6
7
8 Summary of Costs to Approve:
9
10 Total Pension Account Plan ("PAP")
$ 2,069,299
$
5,607,955
$
7,677,254
11 Total Post -Retirement Medical Plan ("FAS 106")
$
1,174,833
$
3,194,561
4,369,394
12 Total Supplemental Executive Retirement Plan ('SERP")
$
150,433
150,433
13 Total (Ln 10 + Ln 11 + Ln 12)
$ 2,069,299 $
1.174833 $
5,607,955 $
150,433 $
3,194,561 $
12,197,081
14
15
16 O&M Expense Factor
96.41%
96.41%
3742%
20.77%
37.42%
17
18 Expense Portion (Ln 13 x Ln 16)
$ 1,995,016 $
1,132,659 $
2,098,222 $
31,249 $
1,195,248 $
6,452,393
19
20 Capital Factor
3.59%
3.59%
62.58%
79,23%
62.58%
21
22 Capital Portion (Ln 13 x Ln 20)
$ 74,283 $
42,174 $
3,509,733 $
119,184 $
1,999,313 $
5,744,687
23
24 Total (Ln 18 + Ln 22)
$ 2,069 299 $
1,174,833 $
5,607,955 $
150,433 $
3,194,561 $
12,197,081
9 -Attachment C-OPEB Baseline
City Hall
City of Denton 215 E. McKinney St.
- Denton, Texas 76201
www.cityofdenton.com
,
DENTON
File #: ID 16-665, Version: 1
Legislation Text
Agenda Information Sheet
DEPARTMENT: Development Services/Economic Development
CM/ ACM: Jon Fortune
Date: May 24, 2016
SUBJECT
Consider a request for an exception to the Noise Ordinance for the purpose of the Last of the Rubber Gloves
live music event to be held outdoors in the fenced yard of Rubber Gloves Rehearsal Studio (RGRS), located at
409 E. Sycamore St., on Friday, June 3, Saturday, June 4, and Sunday, June 5, 2016, from 1:00 p.m. to 2:00
a.m. RGRS specifically requested an exception to increase sound levels from 70 to 75 decibels and for an
extension for hours from 1:00 p.m. to 2:00 a.m.
BACKGROUND
Rubber Gloves Rehearsal Studio (RGRS) is a cement factory turned live music venue, bar, vintage arcade, and
rehearsal studios. RGRS opened their doors in April 1997, and many bands that have played there have gone on
to national fame. In mid-May, RGRS announced that after 20 years in business, it will close its doors. As a
thank you to their customers and the community, RGRS announced its final show.
Due to unprecedented demand for tickets, RGRS wants to hold a three-day event to accommodate more people
and bands. Moving from inside the building to the adjoining fenced yard on the property, RGRS will be able to
welcome not only all the bands but all the people who wish to attend the final shows. Adding an outside venue
will allow for more than double the occupancy of the interior space alone.
RECOMMENDATION
RGRS is requesting an exception to the noise ordinance from 70 dba to 75 dba for this outdoor music venue on
June 3, 4, and 5, 2016, from 1:00 p.m. to 2:00 a.m., at RGRS, 409 E. Sycamore St.
Staff recommends an exception of the noise ordinance from 70 dba to 75 dba from 1:00 p.m. to Midnight on
Friday, June 3 and Saturday, June 4, and from 1:00 p.m. to 11:00 p.m. on Sunday, June 5, which is consistent
with other outdoor festivals held in the Downtown.
STRATEGIC PLAN RELATIONSHIP
The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision.
The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public
City of Denton Page 1 of 2 Printed on 5/20/2016
povveied by I_egivt9i IN
File #: ID 16-665, Version: 1
Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and
Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council
agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Economic Development
Related Goal: 3.2 Make Denton a destination for visitors
EXHIBITS
Exhibit 1 - Request for Exception to Noise Ordinance
Respectfully submitted:
Aimee Bissett
Director of Development Services
Prepared by:
Christina Davis
Economic Development Specialist
City of Denton Page 2 of 2 Printed on 5/20/2016
povveied by I_egist9i I;,
EXHIBIT 1
e5l
City Hall
City of Denton 215 E. McKinney St.
- Denton, Texas 76201
www.cityofdenton.com
,
DENTON
File #: ID 16-634, Version: 1
Legislation Text
AGENDA INFORMATION SHEET
DEPARTMENT: Development Services/Economic Development Division
ACM: Jon Fortune
DATE: May 24, 2016
SUBJECT
Hold a public hearing and consider adoption of an ordinance of the City Council of the City of Denton, Texas
ordaining the City's participation in the Texas Enterprise Zone Program pursuant to the Texas Enterprise Zone
Act, Chapter 2303, Texas Government Code ("Act"), providing tax incentives, designating a liaison for
communication with the interested parties, and nominating WinCo Foods, LLC to the Office of the Governor,
Economic Development and Tourism (OOGEDT) through the Economic Development Bank (the "Bank") as
an Enterprise Project ("Project").
BACKGROUND
The Texas Enterprise Zone Program is a State of Texas economic development tool to promote job creation and
capital investment in economically distressed areas of the state. Successful applicants are eligible to apply for
state sales and use tax refunds on qualified expenditures. The program provides state reimbursement category
levels related to the level of capital investment and number of jobs created and/or retained for economically
disadvantaged individuals during the designation period. Key aspects of the Texas Enterprise Zone Program
are:
• The local city or county must nominate the qualified company as an enterprise project and must offer
one or more forms of local tax incentive to the company.
• Projects may be physically located in or outside of an Enterprise Zone. The location determines the
percent of new employees that must meet economically disadvantaged or Enterprise Zone residence
requirements.
• The enterprise project must be nominated for a designation period of not less than one year and up to
five years, non-inclusive of a 90 -day window prior to the application deadline. Employment and capital
investment commitments must be incurred and met within this timeframe.
• Denton is eligible for up to four enterprise projects plus two additional bonus enterprise projects per
State biennium.
• The local community must conduct a public hearing and approve an Enterprise Project nominating
ordinance prior to submitting the application to the State.
• The State accepts applications on a quarterly basis. June 1, 2016, is the next application deadline date.
• Applications are scored on criteria that reflect the distress of the area, state priority, and local and
private effort. The State may designate up to 105 Enterprise Projects each biennium.
Benefit to WinCo Foods:
City of Denton Page 1 of 2 Printed on 5/20/2016
povveied by I_egivt9i IN
File M ID 16-634, Version: 1
WinCo Foods' 77 -acre distribution center site at 300 S. Western Boulevard is within an existing Enterprise
Zone. If approved in the State's June 2016 application cycle, the project will receive Enterprise Project
designation from June 1, 2016 to June 1, 2021. WinCo Foods, LLC has a projected capital investment of $90
million at the distribution center site during this time frame. At this investment level, the company would
receive state sales and use tax refunds of $2,500 per qualified job up to 500 jobs and a maximum refund of
$1.25M dollars. The company's current plan to create 165 new full-time jobs represents a potential state refund
to WinCo of $412,500.
Benefit to City of Denton:
If selected for the Enterprise Zone Program, 25% of the new employees at WinCo's distribution center must
meet economically disadvantaged or Enterprise Zone residence requirements. This equates to 42 jobs that could
be filled by Denton citizens who are economically disadvantaged or live in an economically disadvantaged
area. WinCo will be required to verify these hires to the State each year it is part of the Enterprise Zone
Program.
FISCAL INFORMATION
Nominating WinCo Foods as an Enterprise Project has no fiscal impact to the City. The nomination simply
enables the project to apply to receive state sales and use tax reimbursement based on job creation in the
Enterprise Zone.
STRATEGIC PLAN RELATIONSHIP
The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision.
The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public
Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and
Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council
agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Economic Development
Related Goal: 3.4 Encourage development, redevelopment, recruitment, and retention
EXHIBITS
1. Draft Ordinance
Respectfully submitted:
Aimee Bissett
Director of Development Services
Prepared by:
Erica Sullivan
Economic Development Analyst
Department of Development Services, Economic Development Division
City of Denton Page 2 of 2 Printed on 5/20/2016
povveied by I_egist9i I;,
sAlegal\our documents\ordinances\16\winco tx ez nominating ordinance 052416.docx
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
AUTHORIZING THE CITY'S PARTICIPATION IN THE TEXAS ENTERPRISE ZONE
PROGRAM PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303,
TEXAS GOVERNMENT CODE ("ACT"), PROVIDING TAX INCENTIVES, DESIGNATING
A LIAISON FOR COMMUNICATION WITH THE INTERESTED PARTIES, AND
NOMINATING WINCO FOODS, LLC TO THE OFFICE OF THE GOVERNOR, ECONOMIC
DEVELOPMENT AND TOURISM (OOGEDT) THROUGH THE ECONOMIC
DEVELOPMENT BANK (THE "BANK") AS AN ENTERPRISE PROJECT ("PROJECT");
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Denton (the "City") desires to create the
proper economic and social environment to induce the investment of private resources in
productive business enterprises located in severely distressed areas of the City and to provide
employment to residents of such areas; and
WHEREAS, the project or activity is located in an area designated as an enterprise zone;
and
WHEREAS, pursuant to Chapter 2303, Subchapter F of the Act, WinCo Foods, LLC has
applied to the City for designation as an Enterprise Project; and
WHEREAS, the City finds that WinCo Foods, LLC meets the criteria for tax relief and
other incentives adopted by the City on the grounds that it will be located at the qualified
business site, will create a higher level of employment, economic activity and stability; and
WHEREAS, a public hearing to consider this order was held on May 24, 2016; NOW,
THEREFORE;
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City hereby ordains its participation in the Texas Enterprise Zone
Program pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code
("Act").
SECTION 2. The City nominates WinCo Foods, LLC for Enterprise Project status.
SECTION 3. The following local incentives, at the election of the governing body, are or
will be made available to the nominated project or activity of the qualified business:
a) The City may abate taxes on the increase in value of real property improvements
and eligible personal property that locate in a designated enterprise zone. The
level of abatement shall be based upon the extent to which the business receiving
the abatement creates jobs for qualified employees, in accordance with the City of
Denton Tax Abatement Policy, and with qualified employee being defined by the
Act. The City may offer the following incentives for businesses meeting the
applicable requirements: reduced electrical utility rates, reduced infrastructure
s:\legal\our documents\ordinances\16\winco tx ez nominating ordinance 052416.doex
costs, grants based on new sales tax or ad valorem tax revenues generated by a
company or development, local sales tax refund, tax increment financing, triple
Freeport tax exemption, Chapter 380 grants, and industrial revenue bonds.
b) The City may provide regulatory relief to businesses, including:
1) zoning changes or variances;
2) exemptions from unnecessary building code requirements, impact fees, or
inspection fees; or
3) streamlined permitting.
C) The City may provide enhanced municipal services to businesses, including:
1) improved police and fire protection;
2) institution of community crime prevention programs; or
3) special public transportation routes or reduced fares.
d) The City may provide improvements in community facilities, including:
1) capital improvements in water and sewer facilities;
2) road repair; or
3) creation or improvement of parks.
e) The City may provide improvements to housing, including:
1) low-interest loans for housing rehabilitation, improvement, or new
construction; or
2) transfer of abandoned housing to individuals or community groups.
f) The City may provide business and industrial development services, including:
1) low-interest loans for business;
2) provision of publicly owned land for development purposes, including
residential, commercial, or industrial development;
3) creation of special one-stop permitting and problem resolution centers or
ombudsmen; or
4) promotion and marketing services.
g) The City may provide job training and employment services to businesses,
including:
1) retraining programs;
2) literacy and employment skills programs;
3) vocational education; or
4) customized job training.
SECTION 4. The enterprise zone areas within the City are reinvestment zones in
accordance with the Texas Tax Code, Chapter 312.
Page 2
s:\legal\our documents\ordinances1161winco tx ez nominating ordinance 052416.docx
SECTION 5. The City of Denton City Council directs and designates its Director of
Development Services as the City's liaison to communicate and negotiate with the OOGEDT
through the Bank and enterprise project(s) and to oversee enterprise zone activities and
communications with qualified businesses and other entities in an enterprise zone or affected by
an enterprise project.
SECTION 6. The City finds that WinCo Foods, LLC meets the criteria for designation as
an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds:
a) WinCo Foods, LLC is a "qualified business" under Section 2303.402 of the Act
since it will be engaged in the active conduct of a trade or business at the qualified
business site located in an enterprise zone in the governing body's jurisdiction and
at least twenty-five percent (25%) of the business' new employees will be
residents of an Enterprise Zone or economically disadvantaged individuals; and
b) There has been and will continue to be a high level of cooperation between
public, private, and neighborhood entities in the area; and
C) The designation of WinCo Foods, LLC as an Enterprise Project will contribute
significantly to the achievement of the plans of the City for development and
revitalization of the area.
SECTION 7. The enterprise project shall take effect on the date of designation of the
enterprise project by OOGEDT and terminate five years after that date.
SECTION 8. This ordinance shall take effect from and after its passage as the law and
charter in such case provides.
PASSED AND APPROVED this the day of , 2016.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
,_..
BY:
Page 3
CHRIS WATTS, MAYOR