HomeMy WebLinkAboutResolution 3348-05-2006A Resolution
NO 3348-05-2006
AUTHORIZING THE CITY OF FORT WORTH (~~CITY") TO
JOIN AND PARTICIPATE IN THE
ATMOS STANDING STEERING COMMITTEE
WHEREAS, various municipalities m the service area of Atmos Energy Corp Mid-Tex Division have
worked together collectively as a coalition to participate m the regulatory process to
assure that natural gas rates charged m their~urisdictions were fair and reasonable; and
WHEREAS, the nature of natural gas utility regulation is undergoing a substantial change as a result of
state and federal legislation, and
WHEREAS, there remains a need for municipalities to cooperate and share information m order to
assure that the public interest is protected in the face of such state and federal legislation
and to assure that natural gas rates are regulated m a manner that continues to be fair and
reasonable; and
WHEREAS, adequate financial resources are needed to enable municipalities to act promptly
decisively and efficiently with respect to various developments pertaining to natural gas
utility regulations, filings and legislative mrtiahves, and
WHEREAS, accordingly various municipalities m the service area of Atmos Energy Corp Mid-Tex
Division wish to create, tom and participate m the Atmos Standing Steering Committee
(the `Steering Committee ')
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH
1. That the City is hereby authorized to loin the Steering Committee and the City Manager
is hereby authorized to execute the attached Participation Agreement.
2. That the Crty Manager or his designee is hereby authorized to represent the City on any
steering committee that may be elected or appointed by Consortium members to govern the Consortium.
3. The Crty Secretary is hereby directed to deliver a certified copy of this Resolution to Jay
Doegey Crty of Arlington, Post Office Box 231 Arlington, TX 76004-0231
AND IT IS SO RESOLVED
ATMOS GAS STANDING STEERING COMMITTEE
PARTICIPATION AGREEMENT
THE STATE OF TEXAS
COUNTY OF
THIS Agreement is made and entered into on this the day of
200_, by between and among the CITY OF
,TEXAS ("CITY") and member cities of the GAS STANDING
STEERING COMMITTEE ("GSSC') This Agreement is authorized by the Texas
Interlocal Cooperation Act (V T C.A. Texas Government Code, Chapter 791), and other
authorities.
WITNESSETH.
WHEREAS the cities m the service area of Atmos Gas have worked together
collectively m a coalition to participate m the regulatory process to assure
gas rates charged were dust and reasonable• and
WHEREAS the nature of gas utility regulation is undergoing substantial change as a
result of state and federal legislation, and
WHEREAS there remains a need for cities to cooperate to assure the public interest is
protected and gas and other utility rates are dust and reasonable, and
WHEREAS regulatory changes now require quick response in order to have
meaningful input into the rate setting process, and
WHEREAS rt is necessary to provide adequate resources to enable cities to act quickly
decisively and ~omtly on gas utility regulatory developments, NOW
THEREFORE,
In consideration of the premises, agreements, covenants and promises set forth
herein, rt is agreed as follows.
1.
Atwos Gas Standing Steering Committee
Membership and Executive Committee
The CITY and the member cities hereby form the Gas Standing Steenng
Committee ("GSSC") Each member city shall, by action of its governing body approve
its membership m the GSSC and designate its representative to receive notices and
participate m and vote at GSSC meetings. The GSSC shall be composed of all cities
paying the current nonrefundable membership fee. The membership fee shall be
established from time to time by the Executive Committee. The fee for the initial period
(approximately one year) is 5¢ per capita, according to the CITY's population listed m the
most recent Texas Municipal League Directory of Texas City Officials. The members
shall elect an Executive Committee consisting of no more than twenty (20) persons which
shall function as the Board of Directors. The Executive Committee shall at least include
a representative from all member cities with a population greater than 100 000 according
to the most recent Texas Municipal League Directory of Texas City Officials. The
remainder of the representatives shall be selected based upon diversity of geographic
location and city population size. Each city on the GSSC and each city on the Executive
Committee shall have one vote, respectively Meetings of the Executive Committee shall
be open to each city on the GSSC whether or not it has a representative on the Executive
Committee
2.
Powers of the Executive Committee
The CITY and the member cities delegate to the Executive Committee the power
to intervene on behalf of GSSC member cities m gas projects, rulemakmg, rate case, and
related dockets and appeals thereof, represent the interests of cities m utility matters
before state and federal legislative bodies and to pay for such activities. A member city
may subsequently request and cause its party status to be withdrawn from such activities.
The Executive Committee shall fix the amount of the membership fee from time to time.
3.
Election of Officers
The Executive Committee shall elect a chair and any co-chairs as rt deems
necessary who shall serve at the pleasure of the Executive Committee. The Executive
Committee shall also elect asecretary/treasurer
4
Powers of the Officers
Each officer elected shall serve at the pleasure of the Executive Committee up to a
term of four (4) years. The Executive Committee shall elect or re-elect officers at least
every four (4) years. Unless terminated by the Executive Committee or the respective
city governing body the officer shall perform the duties of office until a replacement has
been elected. Meetings of the Executive Committee and GSSC shall be upon call of the
chair or two (2) members of the Executive Committee. The Executive Committee shall
meet at least annually The chair is authorized by action of the Executive Committee to
engage consultants and attorneys and to pay for such services.
5.
Termination of Membership
A city may terminate its membership by action of its governing body or if said
city fails to pay its membershup fee m full within one-hundred eighty (180) days after
notification of fee due. A city is considered notified on the day written notice is sent to
its last designated representative on file with the secretary/treasurer
(2)
6.
Money Held in Trust
The officers shall hold and manage all money collected in trust for the benefit of
the member cities collectively Officers may establish prudent fund accounts that
accumulate funding for activities and to pay authorized expenses. Officers shall serve
without pay but may be reimbursed reasonable out-of pocket expenses as approved by
the Executive Committee CITY may request and receive a statement of GSSC revenues
and expenses each year
7
Payment for Performance of Governmental Functions and Services Made from
Current Revenues
By entering into this Agreement, CITY affirms that rt is paying for the
performance of governmental functions or services from current revenues available. The
payments made under this agreement fairly and adequately compensates the GSSC for
the services or functions performed under the contract.
8.
Legal Construction
In case any one or more of the terms, provisions, phrases or clauses contained in
this agreement shall for any reason be held to be mvahd, illegal or unenforceable m any
respect, such mvahdrty illegality or unenforceabilrty shall be construed as if such mvahd,
illegal or unenforceable portion had never been contained herein.
9
Entire Agreement
This contract embodies the complete agreement of the parties hereto superseding
all oral or written previous and contemporary agreements between the parties relating to
matters herein and, except as otherwise provided herein, cannot be modified without
wntten agreement of the parties.
10.
No Other Obligations
By entering into this Agreement, the parties do not create any obligations, express
or implied, other than those set forth herein, and this Agreement shall not create any
rights m parties not signatories hereto
11.
Immunity
It is expressly understood and agreed that in the execution of this Agreement,
neither CITY nor GSSC waives, nor shall be deemed to waive, any immunity or defense
that would otherwise be available to each against claims arising m the exercise of
governmental powers and functions.
(3)
12.
Authority
The undersigned officers and/or agents are properly authorized to execute this
Agreement on behalf of the parties hereto and each hereby certifies to the other that any
necessary resolutions extending such authority have been duly passed and are now in full
force and effect.
IN WITNESS WHEREOF the parties have executed this Agreement on the dates
indicated above
CITY OF ,TEXAS
BY BY
Signature
Printed/Typed Name
Title
ATTEST
CITY SECRETARY
Signature
Pnnted/Typed Name
GAS STANDING
STEERING COMMITTEE
Signature
Pnnted/Typed Name
Title
(4)
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 5/16/2006 -Resolution No 3348-05-2006
DATE Tuesday May 16 2006
LOG NAME 03ATMOS
REFERENCE NO G 15202
SUBJECT
Adopt Resolution Authorizing Participation in the Atmos Gas Standing Steering Committee and
Execution of Related Participation Agreement
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution that:
1 Authorizes the City Manager to join the the Atmos Gas Standing Steering Committee (Steering
Committee} and to execute the Participation Agreement attached hereto and
2. Designates the City Manager or his designee as the City's representative to receive notice and
participate in and vote at Steering Committee meetings
DISCUSSION
In 1996 the Steering Committee of Lone Star Gas Service Area Cities was formed in response to a rate
inquiry initiated by the Texas Railroad Commission and the subsequent filing for an increase in city gate
rates by Lone Star Gas Company Cities participating in the Steering Committee were assessed $0 05 per
capita towards rate case expenses. On December 3 1996 the City Council adopted Resolution 2238
authorizing participation in the Steering Committee and payment of $23 533 as Fort Worth s share of initial
rate case expenses (M&C G-11692)
On May 23 2003 TXU Gas Distribution (the successor to Lone Star Gas Company) made the first filing for
uniform distribution rates state-wide. Previous distribution rates were determined based on local costs and
expenses. Another steering committee was created to hire and direct legal counsel and consultants,
negotiate with the Company make recommendations to the City regarding reasonable rates and to direct
any necessary litigation associated with an appeal of a rate case ordinance and rate case filed at the
Railroad Commission with respect to this filing
The Railroad Commission set the rates for the May 2003 filing in May 2004 Since then Atmos Energy
Corporation (the successor to TXU Gas Distribution) has made two additional filings both of which were
denied by the City Council (M8~C G-14875 on July 26 2005 and M&C G-15002 on November 11 2005) In
addition on November 11 2005 (M&C G-15003) the City Council also initiated a ratemaking proceeding to
determine if Atmos Energy's distribution rates are fair and reasonable
In order to effectively deal with the increased activity in gas regulation, the Executive Committee of the
current steering committee has recommended a more forma! organizational structure A Gas Standing
Steering Committee is proposed. This steering committee will have authority to act on behalf of its
members in any proceeding related to gas utility regulation Member cities will retain the option of opting
out of any proposed rate case action The Gas Standing Steering Committee is similar to the Electric
Standing Steering Committee in which the City Council authorized City participation on July 30 1996 (M&C
G-11549)
Lo~name 03ATMOS Page 1 of 2
A Participation Agreement relating to the City's involvement on the Steering Committee is attached to the
Resolution The Agreement calls for an initial assessment of $0 05 per capita, however this fee is waived
for those participants in the 1996 Steering Committee who have not withdrawn their initial contribution No
additional funds will be required at this time Future assessments will depend on the number and extent of
the rulemaking rate cases and related dockets in which the cities intervene
FISCAL INFORMATIONICERTIFICATION
The Finance Director certifies that this action will have no material effect on City funds
TO Fund/Account/Centers
FROM Fund/Account/Centers
Submitted for City Manager's Office by: Richard Zavala (Acting) (6222)
Originating Department Head. Bridgette Garrett (8518)
Additional Information Contact: Danny Reed (6145)
Logname 03ATMOS
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