MINUTES
TOWN OF COPPER CANYON
REGULAR TOWN COUNCIL MEETING
MONDAY
SEPTEMBER 13, 2010
I. CALL TO ORDER
Mayor Sue Tejml called the regular meeting of the Copper Canyon Town Council to order at 7:00 p.m. on the 13th day of September 2010, in the Council Chambers at Copper Canyon Town Hall, 400 Woodland Drive, Copper Canyon, Texas.
Council present:
Sue Tejml - Mayor
Jeff Mangum - Mayor Pro Tem
Steve Hill - Deputy Mayor Pro Tem
Mark Schmitz - Council Member
Dave Svatik - Council Member
Staff present:
Donna Welsh - Town Administrator
Liz Penny - Town Secretary
Terry Welch - Town Attorney
Brian Haynes - Town Engineer
A quorum of the Town Council was established.
Council Member Dan Christy absent and excused.
Mayor Tejml and Council Members led in the Pledge of Allegiance to the U.S. and Texas flags.
II. PUBLIC INPUT
Citizens can make comments to the Town Council during this section of the meeting agenda. We ask citizens who wish to speak on agenda items to sign in on the sheet provided on the table at the back of the Council Chambers. There is a 3 minute time limit for each citizen who wishes to make a presentation. Pursuant to State Open Meetings law, the Town Council cannot discuss or take action on items not posted on the Agenda. Therefore, the Council cannot take action on or discuss any issues or items brought up during public input.
No one present wished to speak under Item II – Public Input.
Deputy Mayor Pro Tem Steve Hill move to consider Action Item 1.
Mayor Pro Tem Jeff Mangum seconded the motion.
Ayes: Mayor Pro Tem Mangum, Deputy Mayor Pro Tem Hill, Council Members Schmitz, and Svatik
Nays: None
Mayor Tejml declared the motion carried 4-0.
1. Discuss, consider and take action on the adoption of an ordinance approving new rates for Atmos Energy Corporation, Mid-Tex Division, in response to the Company’s Third Rate Review (“RRR”) Mechanism Filing in all cities exercising original jurisdiction; declaring existing rates to be unreasonable, adopting tariffs that reflect just and reasonable rates; extending the process for two cycles and adopting a new RRM Tariff, including cost recovery for a steel service line replacement program; and all matters incident and related thereto.
Atmos Energy Representative James Johnson presented information on a proposed ordinance that would approve new natural gas rates in Copper Canyon.
Mr. Johnson explained that Atmos Energy has adopted the practice of filing rate cases on behalf of the cities. Working with Atmos Energy a coalition of Texas cities (over 200) negotiate for a rate before it is filed with the Texas Railroad Commission. This has proven to be the best practice. It allows cities such as Copper Canyon (that do not have the staff to negotiate the rate) to be represented through the negotiation process.
The rate represents a 3.15% increase per month for gas customers.
Mayor Tejml commented that a portion of the rate increase is to pay for steel line replacement. Mayor Tejml asked if any of the pipeline in Copper Canyon is scheduled to be replaced.
James Johnson explained that the pipeline in Copper Canyon is not that old. It is not scheduled to be replaced in the near future.
Deputy Mayor Pro Tem Steve Hill asked for clarification on the rate case and asked if Atmos Energy hedges inventory.
James Johnson explained that a gas bill is divided into two sections, cost of service and the price of gas. Atmos Energy is asking for a rate increase to cover the cost of services.
James Johnson explained that Atmos Energy does store inventory in the North Texas area.
Council Member Dave Svatik asked if customers have a choice.
James Johnson explained no, the delivery of natural gas is regulated and Atmos owns the pipeline system that delivers the gas.
Council Member Dave Svatik asked questions regarding the rate review mechanism.
James Johnson explained that in 2008 Atmos Energy implemented a Rate Review Mechanism (“RRM”) tariff that allowed for three, annual rate adjustment filings to be made. This is the third rate review. In two years Atmos Energy will have another full rate case to address any discrepancies found in the previous rate case.
Council Member Svatik asked legal advice on language found in the rate case.
Town Attorney Terry Welch replied that there is nothing in the paperwork submitted that he found to be new or different from the prior rate cases. The coalition of cities have met and negotiated with Atmos for this rate case. If the Town does not participate in the rate case, then the Town will have to file their own case and this would be costly.
Upon consideration of the item, Mayor Pro Tem Jeff Mangum moved to adopt Ordinance #10-294 as presented.
Deputy Mayor Pro Tem Steve Hill seconded the motion.
Ayes: Mayor Pro Tem Mangum, Deputy Mayor Pro Tem Hill, Council Member Schmitz
Nays: None
Abstained: Council Member Dave Svatik (due to lack of clarification on the rate documents)
Mayor Tejml declared the motion carried, three (3) with one (1) abstention.
In accordance with the Texas Local Government Code, Section 22.073(b) Ordinance #10-294 is hereby engrossed and enrolled by copying the exact caption and the effective date clause into these official minutes as follows:
10-294
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF COPPER CANYON, TEXAS (“TOWN”) APPROVING NEW RATES FOR ATMOS ENERGY CORP., MID-TEX DIVISION (“ATMOS MID-TEXAS” OR “COMPANY”) IN RESPONSE TO THE COMPANY’S THIRD RATE REVIEW MECHANISM (“RRM”) FILING IN ALL CITIES EXERCISING ORIGINAL JURISDICTION; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT JUST AND REASONABLE RATES; EXTENDING THE RRM PROCESS FOR TWO CYCLES AND ADOPTING A NEW RRM TARIFF, INCLUDING COST RECOVERY FOR A STEEL SERVICE LINE REPLACEMENT PROGRAM; THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY.
III. MAYOR’S REPORT
Flooding issues in Copper Canyon and the North Texas area that occurred on Wednesday, September 8, 2010.
Mayor Tejml reported she had spoken with the homeowners at 670 Knoll Road regarding the flooding of their home on September 8, 2010. The homeowners said that they had purchased the home two months ago. They explained they had not been represented by a real estate agent, however, the seller was represented by an agent and that no disclosure had been made that the house had previously flooded.
On September 8, 2010, several inches of water came into their home. The pool at this residence was also flooded. When the homeowners pulled back the baseboards and sheetrock from the walls, they found black mold and water marks from a previous flood of the home.
Mayor Tejml reported that storm water had gotten up to the door at the new house at the northwest corner of Orchid Hill Lane and Abbott Lane. Mayor Tejml said that she had not been able to make contact with the owner to determine if there was any water damage to the home.
Mayor Tejml reported that several roads in Copper Canyon were flooded. Orchid Hill Lane from Chinn Chapel Road east to FM 2499 was flooded. Water blocked Chinn Chapel Road at the Rolling Acres intersection. The only way out of Town (going south) was Jernigan Road to FM 407. (This problem of ingress and egress during flooding may help the Town, if it asks Denton County to provide funding of road improvements to Jernigan Lane to mitigate this safety concern.)
Mayor Tejml explained that she had contacted the Sheriff’s Office and requested a Deputy to work traffic, but was told that, due to flooding issues all over the County, there were no deputies available.
Mayor Tejml reported that resident Karen Smith called Precinct Four Commissioner Andy Eads and complained about there being only one lane open on Orchid Hill Lane from Chinn Chapel to FM 2499 and that one lane was eastbound only.
Commissioner Eads had explained to Mrs. Smith that the current rebuilding of Orchid Hill required only one lane be open and that lane be eastbound only.
Holiday Schedule
Mayor Tejml asked the Council for input on the monthly meeting schedule during the months of October, November and December.
It was the consensus of the Town Council that for October, November, and December, only one Council Meeting would be conducted each month and that meeting would be on the 2nd Monday of each month.
Mayor Pro Tem Jeff Mangum spoke on pavement failure on Copper Canyon Road that occurred on Saturday, September 11. A portion of Copper Canyon Road had washed out. Denton County was very prompt in making the necessary repairs to the road.
Road Projects
Mayor Tejml reported that FM 2499 would be opened (both lanes) to FM 2181 in Corinth on the last Saturday in October.
Mayor Tejml reported that she had received an update on a timetable on construction of Copper Canyon Road. Originally the County had planned not to start construction until FM 2499 to Corinth is open; however, due to construction of several area roadways, the timetable for start of construction has been scheduled to begin in the spring or summer months of 2011, after the rebuilding of Orchid Hill Lane is completed.
Mayor Tejml reported that the Executive Director of Bike Texas had recently contacted her regarding Copper Canyon’s ordinance stating “No Bicycles in Construction or Detour Routes”. Mayor Tejml said that she had invited the Director to drive these Town roads, because he would then have a better understanding of why the Town passed this ordinance for safety reasons.
STAFF REPORTS
Denton County Sheriff Department Report
Town Administrator Donna Welsh explained that Officer Danny Bates (due to an illness in his family) would not be available to answer any questions on the Sheriff’s Department Staff Report. For the month of August, 86 citations were written and 36 warnings were issued.
Council Member Dave Svatik asked that since the Chinn Chapel Detour Route had been changed were there any problems and were motorists adhering to the signage in the construction area.
Town Administrator Donna Welsh replied that she was not aware of any incident regarding traffic issues with the new detour route and that the speed limit of 20 miles per hour is posted in the construction detour area.
Town Administrator Report
Town Administrator Donna Welsh reported that originally she had reported there would be a $10.00 charge for crushing of hard drives on the Town Clean Up Day, however, it has been determined this would be offered at no costs to the residents.
Council Member Dave Svatik asked the status of getting a list of the current status of road construction projects and a vendor’s list on the website.
Town Administrator Donna Welsh reported that she is working with Town Engineer Brian Haynes on a road construction report for the website.
Town Administrator Donna Welsh replied that she would be contacting the State Comptroller’s Office to request information on businesses that report sales tax. This information could be used to develop a vendor’s list for the website.
Town Secretary Report
A written report was provided to the Town Council.
Town Engineer Report
Town Engineer Brian Haynes reported that Blackjack Lane construction was substantially complete. Clean up, erosion control and seeding has been scheduled.
Brian Haynes reported that Phase I of Chinn Chapel Road improvements should be completed by mid-October, 2010.
Orchid Hill Lane between FM 2499 and Chinn Chapel is an ongoing project and should be complete by December 2010. After the September 8th rainfall, the contractor cleaned out ditches and opened up culverts so that storm water could properly drain.
Halff Associates has stopped Verizon from working without a permit on Orchid Hill Lane. Late last week Verizon submitted plans and within a few hours Halff Associates had provided comments back to Verizon.
Halff Associates is working on development of a spreadsheet that will lay out all roads under construction and the status of the projects. This document should be ready by the next Council meeting.
A power point presentation was given to the Town Council of the September 8, 2010, flood in Copper Canyon.
IV. CONSENT AGENDA
Items on the Consent Agenda are routine and administrative in nature. As such, these items are considered for approval by a single motion and vote without discussion. Council Members can remove an item or items from the agenda so it can be considered separately and/or add any item to be considered as part of the Consent Agenda.
1. Approve Minutes of August 9, 2010.
2. Approve Minutes of August 23, 2010.
3. Approve the August 2010 Financials.
4. Approved Updated Budget Pro Forma through August 31, 2010.
5. Approve Bills to be Paid, and Transfer of Funds.
6. Approve renewal of service provider agreement expiring September 30, 2010; for Right-of-Way Mowing services with John Brothers.
7. Approve renewal of service provider agreement expiring September 30, 2010; for Mowing/Outside Maintenance service at Town Hall with Roy Bradford.
8. Approve renewal of service provider agreement expiring September 30, 2010; for Animal Control services with Brian Hall.
9. Approve contract with Powell Brothers Builders, Inc. for Energy Upgrade of Town Hall funded by an Energy Efficiency and Conservation Block Grant.