Loading...
HomeMy WebLinkAboutCC 2018-03-05 Agendas M RH NOKTH RICHLAND HILLS CITY OF NORTH RICHLAND HILLS CITY COUNCIL AGENDA 4301 CITY POINT DRIVE NORTH RICHLAND HILLS, TX 76180 MONDAY, MARCH 5, 2018 WORK SESSION: 6:00 PM Held in the City Council Work Room CALL TO ORDER 1. Discuss items from regular City Council meeting. 2. Welcome and introduction - public official, public employee or citizen. 3. 2017 Police Department and Fire Department Annual Reports 4. 2017 Racial Profiling Report 5. Selection of Target Corridor for Transportation Plan EXECUTIVE SESSION The City Council may enter into closed Executive Session as authorized by Chapter 551, Texas Government Code. Executive Session may be held at the end of the Regular Session or at any time during the meeting that a need arises for the City Council to seek advice from the city attorney (551.071) as to the posted subject matter of this City Council meeting. The City Council may confer privately with its attorney to seek legal advice on any matter listed on the agenda or on any matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551, Texas Government Code. Monday, March 5, 2018 City Council Agenda Page 1 of 3 1. Section 551.071: Consultation with the City Attorney - Construction Contract with Kodiak Trenching and Boring LLC for paving improvements on Rufe Snow Drive. 2. Section 551.072: Deliberate the purchase, exchange, lease or value of real property - 43 acres of improved and unimproved land identified as John M Crockett Survey bound by Main Street on the south, Smithfield Road on the west, Mickey Street on the north and Davis Boulevard on the east. REGULAR MEETING: Immediately following executive session (but no earlier than 7:00 p.m.) Held in the City Hall Council Chambers A. CALL TO ORDER A.1 INVOCATION - COUNCIL MEMBER BENTON A.2 PLEDGE - COUNCIL MEMBER BENTON A.3 SPECIAL PRESENTATION(S) AND RECOGNITION(S) A.4 CITIZENS PRESENTATION An opportunity for citizens to address the City Council on matters which are not scheduled for consideration by the City Council or another City Board or Commission at a later date. In order to address the Council, please complete a Public Meeting Appearance Card and present it to the City Secretary prior to the start of the Council meeting. A.5 REMOVAL OF ITEM(S) FROM CONSENT AGENDA B. CONSIDER APPROVAL OF CONSENT AGENDA ITEMS B.1 Approve minutes of the February 26, 2018 regular City Council meeting. C. PUBLIC HEARINGS C.1 Conduct Public Hearing and consider Resolution No. 2018-007, adopting the 44th Year Community Development Block Grant Program and approve associated budget transfer. D. PLANNING AND DEVELOPMENT E. PUBLIC WORKS Monday, March 5, 2018 City Council Agenda Page 2 of 3 F. GENERAL ITEMS F.1 Consider Ordinance No. 3507, approving a Negotiated Settlement between the Atmos Cities Steering Committee ("ACSC") and Atmos Energy Corp., Mid-Tex Division regarding the Company's Rate Review Mechanism Filings. G. EXECUTIVE SESSION ITEMS - CITY COUNCIL MAY TAKE ACTION ON ANY ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON WORK SESSION AGENDA H. INFORMATION AND REPORTS - COUNCIL MEMBER TURNAGE H.1 Announcements I. ADJOURNMENT Certification I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on Friday, March 2, 2018 by 3:00 p.m. City Secretary This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817-427-6060 for further information. Monday, March 5, 2018 City Council Agenda Page 3 of 3 ?g1kH NORTH KICHL,AND HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 5, 2018 SUBJECT: Discuss items from regular City Council meeting. PRESENTER: Mark Hindman, City Manager SUMMARY: The purpose of this item is to allow City Council the opportunity to discuss any item on the regular agenda. GENERAL DESCRIPTION: The purpose of this standing item is to allow City Council the opportunity to inquire about items that are posted for discussion and deliberation on the regular City Council agenda. City Council is encouraged to ask staff questions to clarify and/or provide additional information on items posted on the regular or consent agenda. City Council may also elect to move items from the regular agenda to the consent agenda upon receiving clarification from staff on posted regular agenda items. ?g1kH NORTH KICHL,AND HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 5, 2018 SUBJECT: Welcome and introduction - public official, public employee or citizen. PRESENTER: Mark Hindman, City Manager SUMMARY: Introduction of public official, public employee or citizen in attendance at the meeting. GENERAL DESCRIPTION: The purpose of this item is to provide City staff or City Council the opportunity to recognize and introduce a public official, public employee or citizen in attendance at the meeting. MRH CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: 03/05/2018 SUBJECT: 2017 Police Department and Fire Department Annual Reports PRESENTER: Jimmy Perdue and Stan Tinney GENERAL DESCRIPTION: The 2017 Annual Reports for the North Richland Hills Police Department and Fire Department provide a snapshot of the activity and accomplishments of both departments during the calendar year. It shows a variety of activity measurements indicating the effort of these dedicated public safety employees. Police Department - During 2017, a 4% increase was experienced in UCR Part I offenses when compared to the previous year. Significant decreases were seen in shoplifting, robbery and rape. An 8% decrease was experienced in Part 11 offenses when compared to the previous year, with a significant decrease observed in narcotic crimes. We continued to improve both our efficiency and effectiveness in serving our community and the delivery of shared services. In 2017, our department developed policy and issued Axon body-worn cameras to our officers. We will present Council with a demonstration of these during this report. Our department also collaborated with the International Association of Chiefs of Police (IACP) to be featured in a video production. This short film was featured at the Annual Conference and on the IACP website and highlighted the accomplishments of our officers and community wellness programs as well as the Women of Law Enforcement Conference that our agency hosts each year. Fire Department— In 2017, the department went over 8,000 calls for the second time in the department's history. Combined turnout and travel times decreased an average of 12.3 seconds per call. We continued our partnership with Birdville Independent School District and Tarrant County College to continue its second class of Fire Academy students. The department was the first in the nation to implement lifesaving antibiotics in the field to septic patients. These and other accomplishments made 2017 an effective and productive year. The NRHFD Strategic Plan was reviewed and revised. These plans will enhance our ability to communicate, within the department and directly to the community, the plans, needs, and progress of the fire department. Iq R.H NORTH RICHLAND HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: 03/05/2018 SUBJECT: 2017 Racial Profiling Report PRESENTER: Jimmy Perdue, Director of Public Safety General Description: The Police Department hired Alex del Carmen, PH.D., of Del Carmen Consulting to analyze racial profiling data collected by the Police Department during calendar year 2017. Dr. del Carmen concluded that the North Richland Hills Police Department has complied with the Texas Racial Profiling Law (SB1074). The 77th Regular Session of the Texas Legislature passed Senate Bill 1074, an Act relating to the prevention of racial profiling by certain peace officers. This law specifically prohibited racial profiling by peace officers in Texas. This law also added, among other things, requirements for the training of peace officers. In addition, this law added Section 2.132 to the Texas Code of Criminal Procedure. This statute requires police departments to adopt a policy on racial profiling, which we have done. The North Richland Hills Police Department provided the required training to all its members before the statutory deadline of September 1, 2003. Most Patrol Section officers received this training before January 1, 2002 when key portions of the statute took effect. The Police Department continues to train new officers. The required policy on racial profiling must include a report to the governing body of each county or municipality served by the agency. The annual report must contain, "information relating to traffic stops in which a citation is issued and to arrests resulting from those traffic stops, including information relating to: a) the race or ethnicity of the individual detained; and b) whether a search was conducted and, if so, whether the person detained consented to the search." If the Police Department did not have video-recording equipment in all patrol cars and audio-recording devices for motorcycle officers, the required data collection and analysis would be much more extensive. A written report was provided to the City Council prior to the March 1 St deadline. It was reported to Dr. del Carmen by the Police Department that during calendar year 2017, no racial profiling complaints were received. The analysis of the 15-year traffic-related contact data suggested that the North Richland Hills Police Department has been, for the most part, consistent in the racial/ethnic composition of motorists it comes in contact with during a given year. The consistency of contacts for the past 15 years is in place despite the fact the city demographics may have changed, thus, increasing the number of subjects likely to come in contact with the police. ?g1kH NORTH KICHL,AND HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 5, 2018 SUBJECT: Selection of Target Corridor for Transportation Plan PRESENTER: Clayton Comstock, Planning Manager SUMMARY: At the Transportation Plan Workshop on January 22, Council and the Committee were asked to vote between Meadow Lakes Drive, Bedford-Euless Road, or Holiday Lane on a "wildcard" corridor to complete more detailed analysis and recommendations. The vote ended in a tie between Holiday and Bedford-Euless. Eight voted for each and only one voted for Meadow Lakes. Below is a summary of the two corridors and options for Freese & Nichols moving forward: OPTION 1 : Bedford-Euless Road, SH 26 to Strummer OPTION 2: Holiday Lane, Loop 820 to Liberty Way OPTION 3: Both corridors Freese & Nichols has provided a cost estimate of $6,500 to complete both corridors rather than just one. Staff will present the current issues with each of the two corridors, what Freese & Nichols would be analyzing, and the resulting graphics, recommendations and strategies that would be provided. Staff will also be seeking guidance from City Council on which option to move forward with. Attached is a summary spreadsheet of the two corridors. RECOMMENDATION: Provide guidance and direction to staff and the Transportation Plan consultants on which corridor(s) to conduct additional study. ti r 'y 4i 11 ?g1kH NORTH KICHL,AND HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 5, 2018 SUBJECT: Approve minutes of the February 26, 2018 regular City Council meeting. PRESENTER: Alicia Richardson, City Secretary SUMMARY: The minutes are listed on the consent agenda and approved by majority vote of Council at the City Council meetings. GENERAL DESCRIPTION: The City Secretary's Office prepares action minutes for each City Council meeting. The minutes for the previous meeting are placed on the consent agenda for review and approval by the City Council, which contributes to a time efficient meeting. Upon approval of the minutes, an electronic copy will be uploaded to the City's website. RECOMMENDATION: Approve the minutes of the February 26, 2018 regular City Council meeting. MINUTES OF THE WORK SESSION AND REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS HELD IN THE CITY HALL 4301 CITY POINT DRIVE FEBRUARY 26, 2018 WORK SESSION The City Council of the City of North Richland Hills, Texas met in work session on the 26th day of February at 6:00 p.m. in the City Council Workroom prior to the 7:00 p.m. regular Council meeting. Present: Oscar Trevino Mayor Scott Turnage Mayor Pro Tern Tito Rodriguez Council, Place 1 Rita Wright Oujesky Council, Place 2 Tom Lombard Council, Place 3 Tim Barth Council, Place 4 Mike Benton Council, Place 5 Tim Welch Council, Place 7 Staff Members: Mark Hindman City Manager Karen Bostic Assistant City Manager Paulette Hartman Assistant City Manager Alicia Richardson City Secretary Maleshia B. McGinnis City Attorney CALL TO ORDER Mayor Trevino called the meeting to order at 6:00 p.m. 1 DISCUSS ITEMS FROM REGULAR CITY COUNCIL MEETING. Council had no questions for staff. Mayor Trevino announced that following work session, Council would convene into Executive Session to confer privately with the City Attorney as authorized by Section 551.071 of the Texas Government Code to seek legal advice as to the posted agenda item E.2 construction of Smithfield Road project. Mayor Trevino announced that he would abstain from Executive Session and item E.2, because he has a conflict of interest. Mayor Trevino stated that his wife owns property facing Smithfield Road. Mayor Trevino announced that he would also be abstaining from item CA. The property in question will be owned by his wife. February 26, 2018 City Council Meeting Minutes Page 1 of 15 2 WELCOME AND INTRODUCTION - PUBLIC OFFICIAL, PUBLIC EMPLOYEE OR CITIZEN. There was no one present to introduce at the meeting. 3 2017 CITIZENS SURVEY RESULTS Assistant City Manager Paulette Hartman informed Council the survey was mailed to 8,000 households and made available on the city's website. The city received 1,044 survey responses. A sample of this size provides a confidence level of 95% with a margin of error of 3.2%. Ms. Andrea Thomas with National Service Research is present to review the survey results. Ms. Thomas informed Council the objectives included: identifying key measures of quality of life; satisfaction with city services (quality vs. importance); assess experience with city communication tools; identify and prioritize city resource allocation, budgeting and policy decisions; and identify where to maintain and improve city services. The city received 565 responses through the mail and 479 responses through the online survey. Ms. Thomas reviewed the demographics of the respondents. Quality of Life - a majority of respondents rated the overall quality of life in North Richland Hills as excellent or good. Respondents rated the following: overall quality of life in North Richland Hills (96%), place to raise children (96%); feeling of safety in your neighborhood (87%); place to retire (81%); overall appearance of city (80%); place to work (77%); sense of community (74%); and overall quality of services versus taxes paid (71%). City Employees and Service - half of the respondents contacted the city within the past 12 months. Of those who contacted the city, the most frequently called departments included: code compliance (21%); police (20%); public works (20%); utility billing (14%); and animal control (12%). Those respondents that contacted a department 90% said the person or department was very or somewhat courteous and helpful. City Service Priorities - respondents were asked to rank the importance and quality of certain city services. The following services have the largest gaps between high importance and lower quality. * Management of traffic flow ranked 98% important and 58% were pleased with the quality of this service. * Maintenance of residential streets ranked 99% important and 59% were pleased with the quality of this service. * Traffic signal timing ranked 97% important and 58% were pleased with the quality of this service. February 26, 2018 City Council Meeting Minutes Page 2 of 15 * Maintenance of major streets ranked 99% and 69% were pleased with the quality of this service. * Code enforcement ranked 93% important and 63% were pleased with the quality of this service. • Animal control ranked 94% and 84% were pleased with the quality of this service. • Water service ranked 99% and 92% were pleased with the quality of this service. • Maintenance of landscaped medians ranked 89% and 82% were pleased with the quality of this service. The following services have the smallest gaps between high importance and high quality. • Police ranked 99% important and 94% were pleased with the quality of service. • Garbage collection ranked 99% important and 95% were pleased with the quality of service. * Ambulance services ranked 99% important and 97% were pleased with the quality of service. * Recycling collection ranked 96% important and 94% were pleased with the quality of service. The following services meet or exceed the importance rating by the respondents. * Parks, trails and open space ranked 94% important and 94% were pleased with the quality of service. • Fire services ranked 99% important and 99% were pleased with the quality of service. • Recreation programs and services ranked 91% important and 83% were pleased with the quality of service. * Library services ranked 97% important and 88% were pleased with the quality of the service. * Special events ranked 94% important and 73% were pleased with the quality of the service. Preferred Communication - respondents prefer water bill inserts by 42%, followed by email/e-newsletters with 41%, printed newsletters with 38%, text message notifications with 20% and social media with 16%. Streets / Intersections - respondents were asked to identify the top three streets in need of repair or repaving. The results show Rufe Snow with 22%, Smithfield Road with 11% and Glenview Road with 8%. In response to the survey, respondents identified the intersection of Davis Boulevard and Mid Cities Boulevard (16%) where they spend too much time due to traffic congestion or traffic signal timing. Respondents were asked how likely they would be to support or support paying more taxes for improving street and intersections - 9% strongly support, 43% support, 27% oppose and 22% strongly oppose. February 26, 2018 City Council Meeting Minutes Page 3 of 15 Economic Development - respondents were asked to identify type of businesses they would like to see more of in their area of the city. The top three results show full service restaurants with 52%, movie theater with 39% and dining with entertainment/recreation with 29%. Ms. Thomas provided an overview of how North Richland Hills compared to other cities (Southlake, Colleyville, Farmers Branch, Flower Mound, Hurst, Lewisville, Bedford and Denton) as well as Texas and the United States (where available). In a few cases not all cities were included in the benchmark averages due to some questions not being included in each municipal survey. The statistics were compiled from more than 200 municipal surveys conducted in cities of all sizes throughout the United States. The data shows that North Richland Hills is in the excellent or good rating for city services and quality of life. The city experienced an increase in ratings from the 2015 survey for the following: police services; residential trash services; special events; parks and recreation facilities; animal control; street maintenance; managing traffic congestion; water services; place to raise children; feeling safe in neighborhood; place to retire; overall appearance of city; place to work; and sense of community. Ms. Thomas mentioned that the top candidates for improvement include: management of traffic flow, maintaining residential streets, traffic signal timing, maintaining major city streets and code enforcement. Council had no questions for Ms. Thomas. EXECUTIVE SESSION Mayor Trevino announced at 6:29 p.m. that the Council would adjourn into Executive Session as authorized by Section 551.071 of the Texas Government Code to seek legal advice as to the posted agenda item E.2, construction of the Smithfield Road Project. Executive Session began at 6:33 p.m. and concluded at 6:40 p.m. Mayor Pro Tern Turnage announced at 6:41 p.m. that Council would convene to the regular City Council meeting. REGULAR MEETING A. CALL TO ORDER Mayor Trevino called the meeting to order February 26, 2018 at 7:00 p.m. Present: Oscar Trevino Mayor February 26, 2018 City Council Meeting Minutes Page 4 of 15 Scott Turnage Mayor Pro Tern Tito Rodriguez Council, Place 1 Rita Wright Oujesky Council, Place 2 Tom Lombard Council, Place 3 Tim Barth Council, Place 4 Mike Benton Council, Place 5 Tim Welch Council, Place 7 Staff Members: Mark Hindman City Manager Karen Bostic Assistant City Manager Paulette Hartman Assistant City Manager Alicia Richardson City Secretary Maleshia B. McGinnis City Attorney A.1 INVOCATION Council member Barth gave the invocation. A.2 PLEDGE Council member Barth led the pledge of allegiance to the United States and Texas flags. A.3 SPECIAL PRESENTATION(S) AND RECOGNITION(S) There were no items for this category. A.4 CITIZENS PRESENTATION There were no requests to speak from the public. A.5 REMOVAL OF ITEM(S) FROM CONSENT AGENDA No items were removed from the consent agenda. B. CONSIDER APPROVAL OF CONSENT AGENDA ITEMS APPROVED A MOTION WAS MADE BY COUNCIL MEMBER LOMBARD, SECONDED BY MAYOR PRO TEM TURNAGE TO APPROVE THE CONSENT AGENDA. MOTION TO APPROVE CARRIED 7-0. B.1 APPROVE MINUTES OF THE FEBRUARY 12, 2018 REGULAR CITY COUNCIL MEETING. February 26, 2018 City Council Meeting Minutes Page 5 of 15 B.2 AUTHORIZE THE CITY MANAGER TO EXECUTE A SIX YEAR AGREEMENT WITH TIBURON LOCKERS INC. FOR THE RENTAL AND MAINTENANCE OF ELECTRONIC LOCKERS AT NRH2O FAMILY WATER PARK. B.3 APPROVE PURCHASE OF A BUCKET TRUCK FOR THE PUBLIC WORKS DEPARTMENT FROM ALTEC INDUSTRIES, INC. IN THE AMOUNT OF $130,476.00 THROUGH A NATIONAL JOINT POWERS ALLIANCE CONTRACT. B.4 AP 2018-01 CONSIDERATION OF A REQUEST FROM SEMPCO SURVEYING FOR AN AMENDED PLAT OF LOTS 5R1 AND 5R2, BLOCK 2, FOX HOLLOW ADDITION, BEING 0.198 ACRES LOCATED AT 7512 APRIL LANE. B.5 CONSIDER ORDINANCE NO. 3504, ADOPTING REVISIONS TO THE CIVIL SERVICE RULES. C. PUBLIC HEARINGS CA SDP 2018-02, ORDINANCE NO. 3500, PUBLIC HEARING AND CONSIDERATION OF A REQUEST FROM THE WOLFF COMPANY FOR A REVISED SPECIAL DEVELOPMENT PLAN FOR IRON HORSE VILLAGE IN THE 6300-6400 BLOCK OF IRON HORSE BOULEVARD, BEING 9.068 ACRES IN THE TELITHA AKERS SURVEY, ABSTRACT 19, AND EDMUND KING SURVEY, ABSTRACT 29. APPROVED Mayor Trevino opened the public hearing and called on Planning Manager Clayton Comstock to present the item. Mr. Comstock informed Council the applicant is requesting a special development plan for 9.068 acres located in the 6300-6400 block of Iron Horse Boulevard. The area is designated on the Comprehensive Land Use Plan as transit oriented development and the current zoning is transit oriented development. Mr. Comstock presented site photos of the property. Applicant representative Jeff Moten with Wolff Company, located at 167 Saint Andrews Lane, Aledo, Texas and Carl Malcolm with JHP Architecture, located at 8340 Meadow Road, Suite 150, Dallas, Texas presented the request. Mr. Malcolm reviewed the proposed changes to the special development plan. Mr. Comstock presented staff's report. The City Council previously approved a special development plan for this property in May 2017. The proposed request, if approved, would update the special development plan exhibits for the property (Exhibit B, Ordinance February 26, 2018 City Council Meeting Minutes Page 6 of 15 No. 3460) and slight changes to the land use and development regulations (Exhibit C, Ordinance No. 3460). The dedicated commercial space will remain the same, but is centralized in one corner. The open space is increased throughout the development. Mr. Comstock reviewed the following proposed changes to Phase 1. * 324 units not including flex compared to 327 (approved in May 2017) * 349 total units compared to 352 (approved in May 2017) * 7,000 leasing and amenity square footage compared to 5,000 (approved in May 2017) * 49 tuck-under garage compared to 25 (approved in May 2017) * 458 surface parking (on-site) compared to 441 (approved in May 2017) * 507 total on-site parking compared to 466 (approved in May 2017) * 9.7% garage parking on-site compared to 5.4% (approved in May 2017) * 1.45 on-site space per unit compared to 1.32 (approved in May 2017) * 77 on-street parking compared to 64 (approved in May 2017) * 36 designated commercial spaces compared to zero Mr. Comstock reviewed the following proposed changes to Phase 2. * 88 units not including flex compared to 96 (approved in May 2017) * 88 total units compared to 96 (approved in May 2017) * 18% open space compared to 12% (approved in May 2017) The Planning and Zoning Commission, at their February 15, 2018 meeting, recommended approval with a vote of 5-0. Mayor Trevino called for anyone wishing to speak for or against the request to come forward. There being no one wishing to speak, Mayor Trevino closed the public hearing. A MOTION WAS MADE BY COUNCIL MEMBER WELCH, SECONDED BY COUNCIL MEMBER RODRIGUEZ TO APPROVE ORDINANCE NO. 3500. MOTION TO APPROVE CARRIED 7-0. C.2 ZC 2017-15, ORDINANCE NO. 3501, PUBLIC HEARING AND CONSIDERATION OF A REQUEST FROM SAGE GROUP FOR A ZONING CHANGE FROM R-7-MF MULTIFAMILY TO RI-PD RESIDENTIAL INFILL PLANNED DEVELOPMENT IN THE 7300 BLOCK OF CIRCLE DRIVE, BEING 5.80 ACRES DESCRIBED AS LOT 2, BLOCK 35, HOLIDAY NORTH ADDITION. APPROVED Mayor Trevino opened the public hearing and called on Planning Manager Clayton Comstock to introduce the item. February 26, 2018 City Council Meeting Minutes Page 7 of 15 Mr. Comstock informed Council the applicant is requesting a zoning change for 5.80 acres located in the 7300 block of Circle Drive. The area is designated on the Comprehensive Land Use Plan as low density residential and the current zoning is R-7-MF multifamily. Mr. Comstock presented site photos of the property. Applicant representative Curtis Young with the Sage Group, Inc., located at 1130 North Carroll, Southlake, Texas presented the proposed development and requested zoning change. Mr. Young informed Council the proposal this evening includes the recommendation of the Planning and Zoning Commission to install a 6-foot ornamental metal fencing versus the cedar wood fence. The primary access to the development is off of Holiday Lane and Robbins Way. The development will provide a connection to the North Electric Trail, consist of 23 residential lots, internal open space, and mail kiosk location. He visited with neighbors regarding their concerns with construction traffic and the drainage. Mr. Young said that they are using a single contractor and he is confident they will use the designated travel route to address concerns of adjacent neighbors. He also mentioned they offered to incorporate penalties with the contractor if construction traffic does not adhere to the route. In response to Council member Lombard's question, Mr. Young commented that they are working with a civil engineer to address citizen concerns regarding drainage. Mr. Young informed Council they are confident their contractor will adhere to the specified travel routes. The residents also mentioned the existing traffic and speed traveled on Circle Drive. The residents would like speed humps installed and with it being a city street, it would be best addressed by the city. Council member Lombard asked Mr. Young how they felt about providing a $100,000 bond for street repair as requested by the residents. Mr. Young informed Council that he does not believe it would be appropriate to provide a bond. Council discussed the construction traffic, hours of construction, and routes taken by the trucks to gain access to the development. In response to the wear and tear on city streets, Council discussed the requirement to adhere to certain routes and if the city had the right to impose a bond requirement. Council and staff also discussed the drainage easement and who is responsible for maintaining the easement. Mr. Comstock presented staffs report. He reviewed the site plan, landscape plan, site details and development standards. The Planning and Zoning Commission, at their February 1, 2018 meeting, recommended approval with a vote of 4-1. The city engineer and fire marshal reviewed and approved the the cul-de-sac design. The city is in receipt of a petition in excess of the required 20% of adjacent property owners. Pursuant to state law, the request requires six affirmative votes by Council to pass. February 26, 2018 City Council Meeting Minutes Page 8 of 15 Mayor Trevino called for anyone wishing to speak for or against the request to come forward. Mr. Mike Shingler, 7529 Circle Drive, spoke in opposition to the request. He expressed concern with existing traffic and the speed at which vehicles travel through the neighborhood. He would like speed humps installed on Circle Drive and asked the developer to share the cost. The following people did not wish to speak, but ask that their opposition be entered into the record: Mr. Bryce Engel, 2304 Top Rail Lane; Ms. Nancy Jenkins, 7520 Circle Drive; Mr. Ronald Jenkins, 7520 Circle Drive; and Mr. Fred Collins, 7528 Collins Drive. Ms. Janet Southerland, 7508 Circle Drive, informed Council she is concerned with the erosion of the drainage easement. She asked who is responsible for the drainage creek area. City Manager Mark Hindman advised that the city is responsible for maintaining the drainage area. There will be natural erosion, but when it begins to threat private property it will be addressed by the city. There being no one else wishing to speak, Mayor Trevino closed the public hearing. Council member Welch asked the city attorney to clarify whether the city can require the developer to provide a $100,000 bond. City Attorney Maleshia McGinnis advised Council that the city can not require a developer to provide a bond for street repair that is not a public project. Council discussed methods to keep construction trucks off non-concrete roads. A MOTION WAS MADE BY MAYOR PRO TEM TURNAGE, SECONDED BY COUNCIL MEMBER BARTH TO APPROVE ORDINANCE NO. 3501, SUBJECT TO 6-FOOT ORNAMENTAL METAL FENCING BEING REQUIRED ALONG THE SOUTH AND WEST PROJECT BOUNDARIES. MOTION TO APPROVE CARRIED 7-0. February 26, 2018 City Council Meeting Minutes Page 9 of 15 C.3 ZC 2017-17, ORDINANCE NO. 3502, PUBLIC HEARING AND CONSIDERATION OF A REQUEST FROM HIGH LINE GROUP FOR A ZONING CHANGE FROM C-1 COMMERCIAL TO RD-PD REDEVELOPMENT PLANNED DEVELOPMENT AT 6904 NE LOOP 820, BEING 0.799 ACRES DESCRIBED AS LOT 3131, BLOCK 25, SNOW HEIGHTS ADDITION. APPROVED Mayor Trevino opened the public hearing and called on Principal Planner Clayton Husband to introduce the item. Mr. Husband informed Council the applicant is requesting a zoning change for 0.799 acres located at 6904 Northeast Loop 820. The area is designated on the Comprehensive Land Use Plan as commercial and the current zoning is C-1 commercial. Mr. Husband presented site photos of the property. Applicant representative William Milligan with High Line Group, located at 6851 Northeast Loop 820, Suite 210, North Richland Hills presented request. The current building on the property is vacant. The request is for a suite of offices with the remaining land located to the west being vacant. Mr. Milligan reviewed the elevation plans. Council had no questions for the applicant. Mr. Husband presented staff's report. The proposed land use for the property will be a contractors office with shop and garage and a design firm office. The property requires 34 parking spaces and 28 are provided. A sign pole is allowed and the applicant is proposing a monument sign. If the zoning is approved, the applicant has agreed to waive their right to a pole sign. Applicant has indicated up to two vehicles will be parked overnight. The two vehicles are required to be parked adjacent to building and outside storage and display is prohibited. The Planning and Zoning Commission, at their February 15, 2018 meeting, recommended approval with a vote of 5-0. Council had no questions for staff. Mayor Trevino called for anyone wishing to speak for or against the request to come forward. There being no one wishing to speak, Mayor Trevino closed the public hearing. A MOTION WAS MADE BY COUNCIL MEMBER WRIGHT OUJESKY, SECONDED BY COUNCIL MEMBER LOMBARD TO APPROVE ORDINANCE NO. 3502. MOTION TO APPROVE CARRIED 7-0. February 26, 2018 City Council Meeting Minutes Page 10 of 15 CA RP 2017-15 PUBLIC HEARING AND CONSIDERATION OF A REQUEST FROM BEATEN PATH DEVELOPMENT FOR A REPLAT OF LOTS 1AND 2, BLOCK 1, CARRINGTON CENTER, BEING 3.415 ACRES LOCATED IN THE 7500 BLOCK OF MID-CITIES BOULEVARD. APPROVED Mayor Trevino announced that he had a conflict on items C.4 and E.2 and would be abstaining from discussion on both items. His wife will be the future owner of the property for item C.4 and that his wife owns property located immediately north of the request for item E.2. Mayor Trevino left the dais at 8:14 p.m. Mayor Pro Tern Turnage announced that Mayor Trevino has a conflict of interest and he filed an affidavit of disqualification with the City Secretary stating that his wife will own the property at a future date. Mayor Pro Tern Turnage opened the public hearing and called on Planning Manager Clayton Comstock to introduce the item. Mr. Comstock informed Council the applicant is requesting a replat for 3.415 acres located in the 7500 block of Mid Cities Boulevard. The area is designated on the Comprehensive Land Use Plan as transit oriented development and the current zoning is transit oriented development. Mr. Comstock presented site photos of the property. Applicant representative Otis Lee with Baird, Hampton and Brown, located at 1901 Martin Drive, Weatherford, Texas presented request. The request is for a replat for Lots 1 and 2 in Fox Hollow Addition. Lot 1 is proposed for a 6,300 square foot office building and Lot 2 is proposed to be replatted in the future for townhomes. The future replat for the townhomes will include a public street. The utilities are currently present and public access will be provided with the replat for the townhomes. Mr. Comstock presented staffs report. The Planning and Zoning Commission, at their February 15, 2018 meeting, recommended approval with a vote of 4-0-1. Council had no questions for staff. Mayor Pro Tern Turnage called for anyone wishing to speak for or against the request to come forward. There being no one wishing to speak, Mayor Trevino closed the public hearing. Mayor Pro Tern Turnage announced that Council would move to item E.2. February 26, 2018 City Council Meeting Minutes Page 11 of 15 A MOTION WAS MADE BY COUNCIL MEMBER RODRIGUEZ, SECONDED BY COUNCIL MEMBER BENTON TO APPROVE RP 2017-15. MOTION TO APPROVE CARRIED 7-0. E.2 CONSIDER AWARD OF BID NO. 18-005 TO QUALITY EXCAVATION LTD. FOR CONSTRUCTION OF THE SMITHFIELD ROAD PROJECT (DAVIS BLVD. TO MID-CITIES BLVD, ST1304) IN THE AMOUNT OF $2,462,236.40, AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT AND APPROVE ASSOCIATED BUDGET TRANSFERS. APPROVED Mayor Trevino filed an affidavit of disqualification with the City Secretary stating that his wife owns property located north of the request. City Engineer Caroline Waggoner presented item. Staff is seeking Council's approval to award a construction contract to Quality Excavation Ltd. for the Smithfield Road project (Davis Boulevard to Mid-Cities Boulevard) and approve the associated budget transfer. Ms. Waggoner informed Council the construction will consist of three phases. The first phase is expected to begin March 19, 2018 and conclude by September 11, 2018. The construction in phase one associated with sewer will take place between March 19, 2018 and May 13, 2018. The second phase is expected to begin September 12, 2018 and conclude by December 20, 2018. The final phase is expected to begin December 21, 2018 and conclude by January 13, 2019. A MOTION WAS MADE BY COUNCIL MEMBER BENTON, SECONDED BY COUNCIL MEMBER WRIGHT OUJESKY TO AWARD BID NO. 18-005. MOTION TO APPROVE CARRIED 7-0. C.5 ORDINANCE NO. 3506, PUBLIC HEARING AND CONSIDERATION OF ORDINANCE ADOPTING YOUTH PROGRAMS STANDARDS OF CARE. APPROVED Mayor Trevino returned to the dais at 8:29 p.m. Mayor Trevino opened the public hearing and called on Member Services Supervisor Ron Newman to present the item. Mr. Newman presented item and was available to answer questions from Council. February 26, 2018 City Council Meeting Minutes Page 12 of 15 Council had no questions for staff. Mayor Trevino called for anyone wishing to speak for or against the request to come forward. There being no one wishing to speak, Mayor Trevino closed the public hearing. A MOTION WAS MADE BY MAYOR PRO TEM TURNAGE, SECONDED BY COUNCIL MEMBER LOMBARD TO APPROVE ORDINANCE NO. 3506. MOTION TO APPROVE CARRIED 7-0. D. PLANNING AND DEVELOPMENT There were no items for this category. E. PUBLIC WORKS E.1 CONSIDER ORDINANCE NO. 3503, AMENDING SECTION 54-121 OF THE NORTH RICHLAND HILLS CODE OF ORDINANCES; ESTABLISHING A SCHOOL SPEED ZONE ON RUFE SNOW DRIVE AND GLENVIEW DRIVE FOR THE IL TEXAS CHARTER SCHOOL AND MODIFYING THE SCHOOL ZONE FOR MULLENDORE ELEMENTARY SCHOOL. APPROVED City Engineer Caroline Waggoner presented item. The purpose of the ordinance is to establish a school speed zone on Rufe Snow and Glenview and to modify the existing school zone for Mullendore Elementary. A MOTION WAS MADE BY COUNCIL MEMBER WRIGHT OUJESKY, SECONDED BY COUNCIL MEMBER RODRIGUEZ TO APPROVE ORDINANCE NO. 3503. MOTION TO APPROVE CARRIED 7-0. F. GENERAL ITEMS F.1 AUTHORIZE THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE TEXAS DEPARTMENT OF TRANSPORTATION (TXDOT) TO ACCESS TXDOT'S INTELLIGENT TRANSPORTATION SYSTEMS (ITS) DATA FOR MONITORING TRAFFIC ON LOOP 820. APPROVED Emergency Management Coordinator Billy Owens presented item and was available to answer questions from Council. February 26, 2018 City Council Meeting Minutes Page 13 of 15 Council had no questions for staff. A MOTION WAS MADE BY COUNCIL MEMBER LOMBARD, SECONDED BY COUNCIL MEMBER BENTON TO APPROVE ITEM F.1. MOTION TO APPROVE CARRIED 7-0. G. EXECUTIVE SESSION ITEMS - CITY COUNCIL MAY TAKE ACTION ON ANY ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON WORK SESSION AGENDA Mayor Trevino announced there was no action necessary as the result of Executive Session. H. INFORMATION AND REPORTS - COUNCIL MEMBER BENTON H.1 ANNOUNCEMENTS Council member Benton made the following announcements. Volunteers from AARP are assisting residents with their tax returns each Monday and Thursday through April 12, 2018 at the NRH Library. This free service is available to taxpayers of all ages. To make an appointment or get more information, please call the Library at 817-427-6814. Texas Parks and Wildlife will stock Green Valley Pond and Linda Spurlock Pond with 1,000 Rainbow Trout fingerlings on February 28, 2018. Anyone over the age of 17 must have a fishing license to fish in the ponds. Anglers under 17 are not required to have a license. Contact the Parks Department at 817-427-6620 with any questions. Kudos Korner - Johana Orellena and La Toyia Williams-Griffin at the Library - A patron stopped in the Library director's office to share that Johana and La Toyia provided excellent customer service. He said they were very personable and went out of their way to find what he needed. They also offered other options to try. He was extremely appreciative of their help and said they are a credit to the City of North Richland Hills. I. ADJOURNMENT Mayor Trevino adjourned the meeting at 8:42 p.m. February 26, 2018 City Council Meeting Minutes Page 14 of 15 Oscar Trevino, Mayor Alicia Richardson, City Secretary February 26, 2018 City Council Meeting Minutes Page 15 of 15 MRH CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 5, 2018 SUBJECT: Conduct Public Hearing and consider Resolution No. 2018-007, adopting the 44th Year Community Development Block Grant Program and approve a revision to the FY 17-18 Capital Projects Budget. PRESENTER: Kristin James, Assistant to the City Manager SUMMARY: The United States Department of Housing and Urban Development (HUD) requires that a public hearing be held so that the City can receive comments and input from citizens regarding the 44th Year Community Development Block Grant program project. Following the public hearing it is necessary for City Council to take action regarding the project to include in the 44th Year Community Development Block Grant (CDBG) program. Tarrant County and the City of North Richland Hills have entered into a joint agreement whereby Tarrant County is given the authority to administer the program. GENERAL DESCRIPTION: In 1996, HUD designated the City of North Richland Hills as a metropolitan city to receive direct entitlement of Community Development Block Grant (CDBG) funds. On June 24, 1996 the City Council accepted the direct entitlement designation and entered into an agreement with Tarrant County for the administration of the City's CDBG program. As a result of the direct entitlement designation, the City is awarded an annual grant on a formula basis to help provide a wide range of community development activities. CDBG funds are used in the revitalization of neighborhoods, economic development, and to provide public facilities and services for low to moderate income persons. Eligible CDBG projects include construction or rehabilitation of homes, basic infrastructure development such as water/sewer facilities, streets and other programs that target designated areas or persons. The programs/projects selected by the City must fall in the geographic target area identified by the most recent census (2010 Census) as being in an area with low to moderate income persons. Each program year, the City must prepare and submit a CDBG program outlining the use of these funds in accordance with HUD guidelines. Staff was informed that the City of North Richland Hills will be awarded approximately $250,000 for the 44th Year CDBG MRH program. This money will be used for the reconstruction of the entire length of Schiller Drive. The reconstruction of Schiller Drive is being proposed as the City's 44th Year CDBG Project because the poor condition of the street makes it unfeasible to include it with the annual Preventative Street Maintenance Program; too much of the existing pavement and all of the subgrade needs to be replaced. When streets reach this condition level it is more economical to reconstruct the entire street. The current estimate for the reconstruction of Schiller Drive is approximately $285,000. The City's share is estimated at $35,000 with the balance coming from CDBG funds. The project will be managed and paid for directly by Tarrant County with the City being responsible for submitting our share directly to the county. Funding in the amount of $35,000 is being recommended by staff to come from vacancy savings in the General Fund. The proposed budget revision form has been included as an attachment to this agenda item. HUD requires that a public hearing be held so that the City can receive comments and input from citizens regarding the 44th Year CDBG program project. RECOMMENDATION: Approve Resolution No. 2018-007, adopting the 44th Year Community Development Block Grant Program and approve a revision to the FY 17-18 Capital Projects Budget. RESOLUTION NO. 2018-007 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS APPROVING THE PROJECT FOR THE 44TH ANNUAL COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of North Richland Hills will receive Community Development Block Grant (CDBG) funds for the 44th CDBG program year; and WHEREAS, CDBG funds are used to assist with revitalization of neighborhoods, economic development, and to provide public facilities and services for low to moderate income areas; and WHEREAS, the City of North Richland Hills is desirous to receive CDBG funds to improve the quality of life in the identified target area of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: SECTION 1. That the City requests approximately $250,000 in CDBG funding for the 44th Year CDBG program. SECTION 2. That the North Richland Hills City Council hereby designates the 441h Year CDBG Project as reconstruction of the entire length of Schiller Drive (the "Project"). SECTION 3. That the entire amount received in CDBG funds for the 44th Year be used for the Project. SECTION 4. That this Resolution shall take effect and be in full force and effect from and after the date of its adoption, and it is so resolved; and all resolutions of the City Council of the City in conflict herewith are hereby amended or repealed to the extent of such conflict. PASSED AND APPROVED this the 5th day of March, 2018. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor ATTEST: Alicia Richardson, City Secretary APPROVED AS TO FORM AND LEGALITY: Maleshia McGinnis, City Attorney APPROVED AS TO CONTENT: Mike Curtis, Managing Director Street & Sidewalk Capital Projects Reconstruction of Schiller Drive (CDBG) CDBG19 PROJECT DESCRIPTION&JUSTIFICATION In 1996, HUD designated the City of North Richland Hills as a metropolitan city to receive direct entitlement of Community Development Block Grant(CDBG)funds. On June 24, 1996 the City Council accepted the direct entitlement designation and entered into an agreement with Tarrant County for the administration of the City's CDBG program.As a result of the direct entitlement designation,the City is awarded an annual grant on a formula basis to help provide a wide range of community development activities. CDBG funds are used in the revitalization of neighborhoods, economic development, and to provide public facilities and services for low to moderate income persons. Eligible CDBG projects include construction or rehabilitation of homes, basic infrastructure development such as water/sewer facilities, streets and other programs that target designated areas or persons. Each program year,the City must prepare and submit a CDBG program outlining the use of these funds in accordance with HUD guidelines. Staff was informed that the City of North Richland Hills will be awarded approximately $250,000 for the 44th Year CDBG program. Funding will be used for the reconstruction of the entire length of Schiller Drive. PROJECT STATUS ORIGINAL 2017/18 ORIGINAL 2017118 START DATE REVISION END DATE REVISION Professional Services Engineering Land/ROW Acquisition Construction 10/2018 09/2019 Other REVISION EXPLANATION The reconstruction of Schiller Drive is being proposed as the City's 44th Year CDBG Project due to the poor condition of the street. The project will be managed and paid for directly by Tarrant County with the City being responsible for submitting our share directly to the county. Funding in the amount of$35,000 is being recommended by staff to come from vacancy savings in the General Fund. FINANCIAL DATA ADOPTED REVISED TOTAL BUDGETTHRU PROJECT BUDGETTHRU REMAINING PROJECT 2017/18 R"SION 2017/18 BALANCE COST PU NDIN73 SOURCE$ General Fund $0 $35,000. $35,000 $35,000 0 $0 0 $0 0 $0 0 $0 Total $0 ! $35,000 $35,000 $0 $35,00 PROJECT EXPENDITURES Professional Services $0 $0 Engineering/Design 0'. 0 $0 Land/ROW Acquistion 0 $0 Construction 0 35;004 35,000 $35,000 Other 0 $0 Total $0 ! 35,000' $35,000 $0 $35,000 IMPACT ON OPERATING BUDGET Not applicable. ANNUAL OPERATING IMPACT 1 2017/18 1 2018119 1 2019/20 1 2020121 1 2021/22 1 TOTAL Projected I I I I 1 1 $0 ?g1kH NORTH KICHL,AND HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 5, 2018 SUBJECT: Consider Ordinance No. 3507, approving a Negotiated Settlement between the Atmos Cities Steering Committee ("ACSC") and Atmos Energy Corp., Mid-Tex Division regarding the Company's Rate Review Mechanism Filings. PRESENTER: Karen Bostic, Assistant City Manager SUMMARY: The purpose of the Ordinance is for City Council to consider approval of the Settlement Agreement between the Atmos Cities Steering Committee ("ACSC") and Atmos Energy Corp., Mid-Tex Division ("Atmos") revising the Rate Review Mechanism Tariff. GENERAL DESCRIPTION: In March 2017, City Council adopted Ordinance No. 3461 approving rates that were part of a settlement agreement negotiated between Atmos and the Executive Committee of ACSC. Also included in the settlement agreement was the termination of the existing Rate Review Mechanism Tariff ("RRM") and the requirement to renegotiate the terms of that tariff. Negotiations have taken place over the past several months and have resulted in a revised RRM Tariff that has been agreed to by Atmos as well as the Executive Committee. The RRM Tariff that 2017 rates were based allowed a rate of return on equity of 10.5%. The revised RRM Tariff reduces the rate of return on equity to 9.8%. The revised RRM Tariff also captures the reduction in federal income tax rates from 35% to 21% and should result in a rate reduction effective by mid-March 2018. Prior RRM tariffs allowed cities only three months to review the company's annual RRM filing. The new revised Tariff expands that time period by two months. New RRM applications by Atmos should be made on or about April 1 of each year, with new rates effective October 1. RECOMMENDATION: Approve Ordinance 3507. ORDINANCE NO. 3507 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, APPROVING A TARIFF AUTHORIZING AN ANNUAL RATE REVIEW MECHANISM ("RRM") AS A SUBSTITUTION FOR THE ANNUAL INTERIM RATE ADJUSTMENT PROCESS DEFINED BY SECTION 104.301 OF THE TEXAS UTILITIES CODE, AND AS NEGOTIATED BETWEEN ATMOS ENERGY CORP., MID-TEX DIVISION ("ATMOS MID-TEX" OR "COMPANY") AND THE STEERING COMMITTEE OF CITIES SERVED BY ATMOS; REQUIRING THE COMPANY TO REIMBURSE CITIES' REASONABLE RATEMAKING EXPENSES; ADOPTING A SAVINGS CLAUSE; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE OPEN MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND LEGAL COUNSEL FOR THE STEERING COMMITTEE. WHEREAS, the City of North Richland Hills, Texas ("City") is a gas utility customer of Atmos Energy Corp., Mid-Tex Division ("Atmos Mid-Tex" or "Company"), and a regulatory authority with an interest in the rates and charges of Atmos Mid-Tex; and WHEREAS, the City and similarly-situated Mid-Tex municipalities created the Steering Committee of Cities Served by Atmos to efficiently address all rate and service matters associated with delivery of natural gas; and WHEREAS, the Steering Committee formed an Executive Committee to direct legal counsel and to recommend certain specific actions to all aligned Mid-Tex Cities through resolution or ordinance; and WHEREAS, pursuant to the terms of a November 2007 agreement between the Steering Committee and Atmos Mid-Tex that settled the Company's interim rate filing under Section 104.301 of the Texas Utilities Code (a "GRIP" rate case), the Steering Committee and the Company collaboratively developed a Rate Review Mechanism ("RRM") Tariff, ultimately authorized by the City in 2008, that allows for an expedited rate review process as a substitute for the GRIP process; and WHEREAS, the City has kept some form of a RRM Tariff in place until 2017 when it adopted an ordinance approving an RRM Tariff filing settlement and specifically calling for termination of the existing RRM Tariff and negotiation of a replacement RRM Tariff following the Railroad Commission's decision in a then-pending Atmos Texas Pipeline case (GUD No. 10580); and WHEREAS, the Steering Committee's Executive Committee has recently approved a settlement with the Company on the attached RRM Tariff that contains certain notable improvements, from a consumer perspective, over the prior RRM Tariff, including a reduced rate of return on equity, acceptance of certain expense adjustments 1 made by the Railroad Commission in the Order in GUD No. 10580, and the addition of two months to the time for processing a RRM Tariff application; and WHEREAS, the RRM Tariff contemplates reimbursement of Cities' reasonable expenses associated with RRM Tariff applications; and WHEREAS, the Steering Committee's Executive Committee recommends that all Steering Committee member cities adopt this ordinance and the attached RRM Tariff; and WHEREAS, the attached RRM Tariff is just, reasonable and in the public interest, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: Section 1. That the findings set forth in this Ordinance are hereby in all things approved. Section 2. That the attached RRM Tariff re-establishing a form of Rate Review Mechanism is just and reasonable and in the public interest, and is hereby adopted. Section 3. That Atmos Mid-Tex shall reimburse the Cities' reasonable expenses associated with adoption of this Ordinance and the attached RRM Tariff and in processing future RRM Tariff applications filed pursuant to the attached tariff. Section 4. That to the extent any resolution or ordinance previously adopted by the City is inconsistent with this Ordinance, it is hereby repealed. Section 5. That the meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 6. That if any one or more sections or clauses of this Ordinance is adjudged to be unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provisions of this Ordinance, and the remaining provisions of this Ordinance shall be interpreted as if the offending section or clause never existed. Section 7. That this Ordinance shall become effective from and after its passage. Section 8. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of Chris Felan, Vice President of Rates and Regulatory Affairs, Atmos Energy Corporation, Mid-Tex Division, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to Mid-Tex Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701. 2 PASSED AND APPROVED this 5th day of March, 2018. Mayor ATTEST: APPROVED AS TO FORM: Alicia Richardson, City Secretary Maleshia McGinnis, City Attorney APPROVED AS TO CONTENT: Karen Bostic, Assistant City Manager 3 ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM —Rate Review Mechanism APPLICABLE TO: ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT ATO THIS RATE SCHEDULE EFFECTIVE DATE: Bills Rendered on and after 04/01/2018 PAGE: 1 I. Applicability Applicable to Residential, Commercial, Industrial, and Transportation tariff customers within the city limits of cities identified in Exhibit A that receive service from the Mid-Tex Division of Atmos Energy Corporation ("Company"). This Rate Review Mechanism ("RRM") provides for an annual adjustment to the Company's Rate Schedules R, C, I and T ("Applicable Rate Schedules"). Rate calculations and adjustments required by this tariff shall be determined on a System-Wide cost basis. II. Definitions "Test Period" is defined as the twelve months ending December 31 of each preceding calendar year. The "Effective Date" is the date that adjustments required by this tariff are applied to customer bills. The annual Effective Date is October 1. Unless otherwise provided in this tariff the term Final Order refers to the final order issued by the Railroad Commission of Texas in GUD No. 10170 and elements of GUD No. 10580 as specified in Section III below. The term "System-Wide" means all incorporated and unincorporated areas served by the Company. "Review Period" is defined as the period from the Filing Date until the Effective Date. The "Filing Date" is as early as practicable, but no later than April 1 of each year. III. Calculation The RRM shall calculate an annual, System-Wide cost of service ("COS") that will be used to adjust applicable rate schedules prospectively as of the Effective Date. The Company may request recovery of its total cost of service but will include schedules showing the computation of any adjustments. The annual cost of service will be calculated according to the following formula: COS = OM + DEP + RI + TAX + CD Where: OM = all reasonable and necessary operation and maintenance expenses from the Test Period adjusted for known and measurable items and prepared ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM —Rate Review Mechanism APPLICABLE TO: ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT ATO THIS RATE SCHEDULE EFFECTIVE DATE: Bills Rendered on and after 04/01/2018 PAGE: 2 consistent with the rate making treatments approved in the Final Order. Incentive compensation (Management Incentive Plan, Variable Pay Plan and Long Term Incentive Plan) related to Atmos' Shared Services Unit will be applied consistent with treatment approved in GUD 10580. Additionally, O&M adjustments will be incorporated and applied as modified by a final order, not subject to appeal, issued by the Railroad Commission of Texas in subsequent rate cases involving the Atmos Mid-Tex or West Texas divisions. Known and measurable adjustments shall be limited to those changes that have occurred prior to the Filing Date. OM may be adjusted for atypical and non-recurring items. Shared Services allocation factors shall be recalculated each year based on the latest component factors used during the Test Period, but the methodology used will be that approved in the Final Order in GUD 10580. DEP = depreciation expense calculated at depreciation rates approved by the Final Order. Additionally, if depreciation rates are approved in a subsequent final order, not subject to appeal, issued by the Railroad Commission of Texas for the Mid-Tex division those rates would be applicable for subsequent RRM filings. RI = return on prudently incurred investment calculated as the Company's pretax return multiplied by rate base at Test Period end. Rate base is prepared consistent with the rate making treatments approved in the Final Order, and as in GUD 10580 as specifically related to capitalized incentive compensation (Management Incentive Plan, Variable Pay Plan and Long Term Incentive Plan) for Atmos' Shared Services Unit. However, no post Test Period adjustments will be permitted. Additionally, adjustments will be incorporated and applied as modified by a final order, not subject to appeal, issued by the Railroad Commission of Texas in subsequent rate cases involving the Atmos Mid-Tex or West Texas divisions. Pretax return is the Company's weighted average cost of capital before income taxes. The Company's weighted average cost of capital is calculated using the methodology from the Final Order including the Company's actual capital structure and long term cost of debt as of the Test Period end (adjusted for any known and measurable changes that have occurred prior to the filing date) and the return on equity of 9.8%. However, in no event will the percentage of equity exceed 58%. Regulatory adjustments due to prior regulatory rate base adjustment disallowances will be maintained. Cash working capital will be calculated using the lead/lag days approved in the Final Order. With respect to pension and other postemployment benefits, the Company will record a regulatory asset or liability for these costs until the amounts are included in the next annual rate adjustment implemented under this tariff. Each year, the Company's filing under this Rider RRM will clearly state the level of pension ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM —Rate Review Mechanism APPLICABLE TO: ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT ATO THIS RATE SCHEDULE EFFECTIVE DATE: Bills Rendered on and after 04/01/2018 PAGE: 3 and other postemployment benefits recovered in rates. TAX = income tax and taxes other than income tax from the Test Period adjusted for known and measurable changes occurring after the Test Period and before the Filing Date, and prepared consistent with the rate making treatments approved in the Final Order. Atmos Energy shall comprehensively account for, including establishing a regulatory liability to account for, any statutory change in tax expense that is applicable to months during the Test Period in the calculation to ensure recovery of tax expense under new and old income tax rates. CD = interest on customer deposits. IV. Annual Rate Adjustment The Company shall provide schedules and work papers supporting the Filing's revenue deficiency/sufficiency calculations using the methodology accepted in the Final Order. The result shall be reflected in the proposed new rates to be established for the effective period. The Revenue Requirement will be apportioned to customer classes in the same manner that Company's Revenue Requirement was apportioned in the Final Order. For the Residential Class, 50% of the increase may be recovered in the customer charge. However, the increase to the Residential customer charge shall not exceed $0.60 per month in the initial filing and $0.70 per month in any subsequent year. The remainder of the Residential Class increase not collected in the customer charge will be recovered in the usage charge. For all other classes, the change in rates will be apportioned between the customer charge and the usage charge, consistent with the Final Order. Test Period billing determinants shall be adjusted and normalized according to the methodology utilized in the Final Order. V. Filing The Company shall file schedules annually with the regulatory authority having original jurisdiction over the Company's rates on or before the Filing Date that support the proposed rate adjustments. The schedules shall be in the same general format as the cost of service model and relied-upon files upon which the Final Order was based. A proof of rates and a copy of current and proposed tariffs shall also be included with the filing. The filing shall be made in electronic form where practical. The Company's filing shall conform to Minimum Filing Requirements (to be agreed upon by the parties), which will contain a minimum amount of information that will assist the regulatory authority in its review and analysis of the filing. The Company and regulatory authority will endeavor to hold a technical conference regarding the filing within twenty (20) calendar days after the Filing Date. ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM —Rate Review Mechanism APPLICABLE TO: ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT ATO THIS RATE SCHEDULE EFFECTIVE DATE: Bills Rendered on and after 04/01/2018 PAGE: 4 A sworn statement shall be filed by an Officer of the Company affirming that the filed schedules are in compliance with the provisions of this Rate Review Mechanism and are true and correct to the best of his/her knowledge, information, and belief. No testimony shall be filed, but a brief narrative explanation shall be provided of any changes to corporate structure, accounting methodologies, allocation of common costs, or atypical or non- recurring items included in the filing. VI. Evaluation Procedures The regulatory authority having original jurisdiction over the Company's rates shall review and render a decision on the Company's proposed rate adjustment prior to the Effective Date. The Company shall provide all supplemental information requested to ensure an opportunity for adequate review by the relevant regulatory authority. The Company shall not unilaterally impose any limits upon the provision of supplemental information and such information shall be provided within seven (7) working days of the original request. The regulatory authority may propose any adjustments it determines to be required to bring the proposed rate adjustment into compliance with the provisions of this tariff. The regulatory authority may disallow any net plant investment that is not shown to be prudently incurred. Approval by the regulatory authority of net plant investment pursuant to the provisions of this tariff shall constitute a finding that such net plant investment was prudently incurred. Such finding of prudence shall not be subject to further review in a subsequent RRM or Statement of Intent filing. During the Review Period, the Company and the regulatory authority will work collaboratively and seek agreement on the level of rate adjustments. If, at the end of the Review Period, the Company and the regulatory authority have not reached agreement, the regulatory authority shall take action to modify or deny the proposed rate adjustments. The Company shall have the right to appeal the regulatory authority's action to the Railroad Commission of Texas. Upon the filing of an appeal of the regulatory authority's order relating to an annual RRM filing with the Railroad Commission of Texas, the regulatory authority having original jurisdiction over the Company's rates shall not oppose the implementation of the Company's proposed rates subject to refund, nor will the regulatory authority advocate for the imposition of a third party surety bond by the Company. Any refund shall be limited to and determined based on the resolution of the disputed adjustment(s) in a final, non-appealable order issued in the appeal filed by the Company at the Railroad Commission of Texas. ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM —Rate Review Mechanism APPLICABLE TO: ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT ATO THIS RATE SCHEDULE EFFECTIVE DATE: Bills Rendered on and after 04/01/2018 PAGE: 5 In the event that the regulatory authority and Company agree to a rate adjustment(s) that is different from the adjustment(s) requested in the Company's filing, the Company shall file compliance tariffs consistent with the agreement. No action on the part of the regulatory authority shall be required to allow the rate adjustment(s) to become effective on October 1. To the extent that the regulatory authority does not take action on the Company's RRM filing by September 30, the rates proposed in the Company's filing shall be deemed approved effective October 1. Notwithstanding the preceding sentence, a regulatory authority may choose to take affirmative action to approve a rate adjustment under this tariff. In those instances where such approval cannot reasonably occur by September 30, the rates finally approved by the regulatory authority shall be deemed effective as of October 1. To defray the cost, if any, of regulatory authorities conducting a review of the Company's annual RRM filing, the Company shall reimburse the regulatory authorities on a monthly basis for their reasonable expenses incurred upon submission of invoices for such review. Any reimbursement contemplated hereunder shall be deemed a reasonable and necessary operating expense of the Company in the year in which the reimbursement is made. A regulatory authority seeking reimbursement under this provision shall submit its request for reimbursement to the Company no later than December 1 of the year in which the RRM filing is made and the Company shall reimburse regulatory authorities in accordance with this provision on or before December 31 of the year the RRM filing is made. To the extent possible, the provisions of the Final Order shall be applied by the regulatory authority in determining whether to approve or disapprove of Company's proposed rate adjustment. This Rider RRM does not limit the legal rights and duties of a regulatory authority. Nothing herein shall abrogate the jurisdiction of the regulatory authority to initiate a rate proceeding at any time to review whether rates charged are just and reasonable. Similarly, the Company retains its right to utilize the provisions of Texas Utilities Code, Chapter 104, Subchapter C to request a change in rates. The provisions of this Rider RRM are implemented in harmony with the Gas Utility Regulatory Act (Texas Utilities Code, Chapters 101-105). The annual rate adjustment process set forth in this tariff shall remain in effect during the pendency of any Statement of Intent rate filing. ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM —Rate Review Mechanism APPLICABLE TO: ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT ATO THIS RATE SCHEDULE EFFECTIVE DATE: Bills Rendered on and after 04/01/2018 PAGE: 6 VII. Reconsideration, Appeal and Unresolved Items Orders issued pursuant to this mechanism are ratemaking orders and shall be subject to appeal under Sections 102.001(b) and 103.021, et seq., of the Texas Utilities Code (Vernon 2007). VIII. Notice Notice of each annual RRM filing shall be provided by including the notice, in conspicuous form, in the bill of each directly affected customer no later than forty-five (45) days after the Company makes its annual filing pursuant to this tariff. The notice to customers shall include the following information: a) a description of the proposed revision of rates and schedules; b) the effect the proposed revision of rates is expected to have on the rates applicable to each customer class and on an average bill for each affected customer; c) the service area or areas in which the proposed rates would apply; d) the date the annual RRM filing was made with the regulatory authority; and e) the Company's address, telephone number and website where information concerning the proposed rate adjustment can be obtained. ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM —Rate Review Mechanism APPLICABLE TO: ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT ATO THIS RATE SCHEDULE EFFECTIVE DATE: Bills Rendered on and after 04/01/2018 PAGE: 7 Exhibit A ACSC Cities Abilene Cleburne Frost Lincoln Park Addison Clyde Gainesville Little Elm Albany College Station Garland Lorena Allen Colleyville Garrett Madisonville Alvarado Colorado City Grand Prairie Malakoff Angus Comanche Grapevine Mansfield Anna Commerce Groesbeck Mckinney Argyle Coolidge Gunter Melissa Arlington Coppell Haltom City Mesquite Aubrey Copperas Cove Harker Heights Midlothian Azle Corinth Haskell Murphy Bedford Crandall Haslet Newark Bellmead Crowley Hewitt Nocona Benbrook Dalworthington Gardens Highland Park North Richland Hills Beverly Hills Denison Highland Village Northlake Blossom Denton Honey Grove Oak Leaf Blue Ridge Desoto Hurst Ovilla Bowie Draper Hutto Palestine Boyd Duncanville Iowa Park Pantego Bridgeport Eastland Irving Paris Brownwood Edgecliff Village Justin Parker Buffalo Emory Kaufman Pecan Hill Burkburnett Ennis Keene Petrolia Burleson Euless Keller Plano Caddo Mills Everman Kemp Ponder Canton Fairview Kennedale Pottsboro Carrollton Farmers Branch Kerens Prosper Cedar Hill Farmersville Kerrville Quitman Celeste Fate Killeen Red Oak Celina Flower Mound Krum Reno (Parker County) Centerville Forest Hill Lake Worth Rhome Cisco Forney Lakeside Richardson Clarksville Fort Worth Lancaster Richland Frisco Lewisville Richland Hills ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM —Rate Review Mechanism APPLICABLE TO: ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT ATO THIS RATE SCHEDULE EFFECTIVE DATE: Bills Rendered on and after 04/0112018 PAGE: 8 River Oaks Temple Roanoke Terrell Robinson The Colony Rockwall Trophy Club Roscoe Tyler Rowlett University Park Royse City Venus Sachse Vernon Saginaw Waco Sansom Park Watauga Seagoville Waxahachie Sherman Westlake Snyder Westover Hills Southlake Westworth Village Springtown White Settlement Stamford Whitesboro Stephenville Wichita Falls Sulphur Springs Woodway Sweetwater Wylie ?g1kH NOKTH KICHL,AND HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 5, 2018 SUBJECT: Announcements PRESENTER: GENERAL DESCRIPTION: At each Council meeting a member of the governing body announces upcoming events in the City and recognizes an employee that exemplifies the City's core values. Announcements: The Maker Spot at the NRH Library is holding a Community Build event this Thursday, March 8, from 10 a.m. to 8:30 p.m. Local makers will 3D print and assemble prosthetic hands for the eNable Foundation. The public is invited to stop by and help test the prosthetic hands, make cards for the recipients of the hands and help create a commemorative work of art to be hung in The Maker Spot. For more information visit The Maker Spot website and click on events, or call 817-427-6850. Easter in the Park will take place Saturday, March 24, from 10:00 a.m. to noon at Green Valley Park. Activities include an Easter egg hunt, petting zoo, mini-train rides, bounce houses and more. You can find more details on the city's website, or by calling the Parks department. Kudos Korner: Every Council Meeting, we spotlight our employees for the great things they do. Tonight we recognize: Chuck James in Public Works - A concerned resident approached Chuck about his large water bill. Chuck spent about an hour with the resident to determine a leaking irrigation valve was the reason. The resident said he didn't expect to get this level of service from a "government" employee.