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0945 OFFICIAL RECORD ORDINANCE NO. 945 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, ("CITY") APPROVING A NEGOTIATED RESOLUTION BETWEEN THE ATMOS CITIES STEERING COMMITTEE AND ATMOS ENERGY CORP., MID-TEX DIVISION ("ATMOS MID-TEX" OR "THE COMPANY") REGARDING THE COMPANY'S RATE REVIEW MECHANISM FILING IN ALL CITIES EXERCISING ORIGINAL JURISDICTION; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED SETTLEMENT AND FINDING THE RATES TO BE SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; APPROVING ATMOS' PROOF OF REVENUES; ADOPTING A SAVINGS CLAUSE; DETERMINING 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 AND LEGAL COUNSEL. WHEREAS, the City of Southlake, Texas ("City") is a gas utility customer of Atmos Energy Corp., Mid-Tex Division ("Atmos Mid-Tex" or "the Company"), and a regulatory authority with an interest in the rates and charges of Atmos Mid-Tex; and WHEREAS, the City is a member of the Atmos Cities Steering Committee ("ACSC"), a coalition of more than 150 similarly situated cities served by Atmos Mid-Tex that have joined together to facilitate the review and response to natural gas issues affecting rates charged in the Atmos Mid-Tex service area (such participating cities are referred to herein as "ACSC Cities"); and WHEREAS, Atmos and ACSC Cities have been in continuing disagreement, dispute, and litigation over the implementation of GRIP surcharges pursuant to Section 104.301 of the Texas Utilities Code; and Atmos RRM Ordinance 1 WHEREAS, as part of the negotiations to resolve Atmos' 2007 rate case, ACSC Cities and the Company worked collaboratively to develop the Rate Review Mechanism ("RRM") tariff that allows for an expedited rate review process controlled by Cities as a substitute to the current GRIP process instituted by the Legislature; and WHEREAS, the City took action earlier this year to approve a Settlement Agreement with Atmos Mid-Tex resolving the Company's 2007 rate case and authorizing the RRM Tariff, and WHEREAS, on or about April 14, 2008, Atmos Mid-Tex filed with the City its first application pursuant to the RRM tariff to increase natural gas rates by approximately $33.5 million, such increase to be effective in every municipality that has adopted the RRM tariff within its Mid-Tex Division; and WHEREAS, ACSC Cities coordinated its review of Atmos' RRM filing and designated a Negotiation Cormnittee made up of ACSC representatives and assisted by ACSC attorneys and consultants to resolve issues identified by ACSC in the Company's RRM filing; and WHEREAS, the Company has filed evidence that existing rates are unreasonable and should be changed; and WHEREAS, independent analysis by ACSC's rate expert concluded that Atmos is able to justify a rate increase of $19.8 million; and WHEREAS, the ACSC Executive Committee, as well as ACSC lawyers and consultants, recommends ACSC members approve the attached rate tariffs ("Attachment A" to this Ordinance) that will increase the Company's revenue requirement by $20 million; and WHEREAS, the attached tariffs implementing new rates and Atmos' Proof of Revenues ("Attachment B" to this Ordinance) are consistent with the negotiated resolution reached by Atmos RRM Ordinance 2 ACSC Cities (including but not limited to a reduction of the residential customer monthly charge to $7.00 per month) and are just, reasonable, and in the public interest; and WHEREAS, it is the intention of the parties that ACSC Cities receive the benefit of any Settlement Agreement that Atmos enters into with other entities arising out of its RRM or any associated appeals of a decision entered by the Railroad Commission regarding the Company's request to increase rates. The ACSC Cities' acknowledge that the exercise of this right is conditioned upon the ACSC Cities' acceptance of all rates, revenues, terms and conditions of any other Settlement Agreement or associated appeals arising out of the Company's RRM filing in toto; and WHEREAS, the negotiated resolution of the Company's RRM filing and the resulting rates are, as a whole, is in the public interest. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: Section 1. That the findings set forth in this Ordinance are hereby in all things approved. Section 2. That the City Council finds that the existing rates for natural gas service provided by Atmos Mid-Tex are unreasonable and new tariffs and Atmos' proof of revenues, which are attached hereto and incorporated herein as Attachments A and B, are just and reasonable and are hereby adopted. Section 3. That to the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Ordinance, it is hereby repealed. Section 4. 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. Atmos RRM Ordinance 3 Section 5. 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 the Ordinance shall be interpreted as if the offending section or clause never existed. Section 6. That if ACSC Cities determine any rates, revenues, terms and conditions, or benefits resulting from a Final Order or subsequent negotiated settlement approved in any proceeding addressing the issues raised in Atmos' RRM filing would be more beneficial to the ACSC Cities than the terms of the attached tariff, then the more favorable rates, revenues, terms and conditions, or benefits shall additionally accrue to the ACSC Cities. Exercise of this right is conditioned upon ACSC Cities' acceptance of all rates, revenues, terms and conditions of any other Settlement Agreement or associated appeals arising out of the Company's RRM filing in toto. Section 8. That this Ordinance shall become effective from and after its passage with rates authorized by attached Tariffs to be effective for customer bills delivered on or after October 1, 2008. Section 9.* That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of David Park, 'Vice President Rates and Regulatory Affairs, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725. PASSED AND APPROVED on first reading this 2n~ day of 0 02~ , 2008. Addy Wainbs ss, Mayor Atmos RRM Ordinance 4 ATTEST: ((dry L 0 p °9 O O O m ~ VJ a Lori Payne o ° City Secretary •..o•oo PASSED AND APPROVED ON second reading this (~p day of ~a2f , 2008. Andy Wambsganss,. Mayor ATTEST: ~,~E.~®&`~k~~J~"~•p~,~ . • a • tcn- Lori Payne u • City Secretary ' APPROVE AS FORM: City Attorney Atmos RRM Ordinance 5 INVOICE Draft Only Star-Telegram Customer ID: CIT57 400 W.7TH STREET RECEIVED Invoice Number: 299841041 FORT WORTH,TX 76102 (817)390 7761 Invoice Date: 8/31/2008 Federal Tax ID 22-3148254 FP n Terms: Net due in 21 days Due Date: 8/31/2008 Bill CITY OF SOUTHLAKE OFFICE OF C IY SECRETARY PO Number: PO#20801261-000 1400 MAIN ST Order Number: 29984104 STE 440 Sales Rep: 073 SOUTHLAKE, TX 76092-7604 Description: CITY OF SOUTHLA Publication Dates: 8/30/2008 -8/31/2008 Description Location Col Depth Linage MU Rate Amount I CITY of SourH- CITY OF SOUT Notice is LAKEhereby given e 13580 1 7U 70 LINE $0.43 $60.20 by the City Council of the City of Southlake, Texas, Sales Discount . what a public b blich daring ($8.50) on September 16,2008, at 5:00 p.m. or im- Misc Fee mediately following $5.00 the Work Session, during the Regular City Council meeting to be held in the City Council Chambers of Town Hall, 1400 Main Street, South- lake, Texas. Purpose Net Amount: $56.70 of the public hearing is to consider the second reading of the following ordi- nance: ORDINANCE NO. 945 Approve a negotiated resolution between the Atmos Cities Steering Committee arid Atmos Energy Corp., Mid-Tex Divi-sion ("Atmos Mid- 1IiIIIIIIIIIIIIII ] Tex or Theomionxpes Company") regard-in the company'sJul ,20rate review mecha- nism filing in all THE STATE O- cities exercising original jurisdiction; declaring existing County of Tarra rates to be unrea- sonable; adopting Before me,a Nc tariffs aaiustmentssaid County and State,this day personally appeared Deborah Baylor, Bid and Legal Coordinator for the Star- Telegram,public consi cited with t a-ram, Inc.at Fort Worth,in Tarrant County,Texas;and who,after being duly sworn,did depose and say that the attached clipping rment ates and fin beds t the was published in the -•ove limed paper on the listed dates:BIDS&LEGAL DEPT. STAR TELEGRAM (817)390-7501 the attached tariffs to be just and rea- sonable; approving /��`/Atmos' proof of I cl 1 revenues;adopting a Signed \` \��r,,, 1 `Y savings clause; de- termining that this SUBSCRIBED/ ordinance was:ORE ME,THIS Wednesd y,, Sej el •er 03,2008. i passed in accordance with the require- I d ments of the Texas Open Meetings Act; Notary Publi declaring an effec- tive date; and re- quiring delivery of this ordinance to the company and legal counsel. City of Southlake Lori Payne City Secretary Thank You For Y our rayment Remit To: Star-Telegram Customer ID: CIT57 P.O. BOX 901051 Customer Name: CITY OF SOUTHLAKE FORT WORTH, TX 76101-2051 Invoice Number: 299841041 Invoice Amount: $56.70 PO Number: PO#20801261-000 Amount Enclosed: $ j INVOICE Draft Only Star-Telegram Customer ID: CIT57 400 W.7TH STREET RECEIVED Invoice Number: 299841041 FORT WORTH,TX 76102 (817)390 7761 Invoice Date: 8/31/2008 Federal Tax ID 22-3148254 FP n Terms: Net due in 21 days Due Date: 8/31/2008 Bill CITY OF SOUTHLAKE OFFICE OF C IY SECRETARY PO Number: PO#20801261-000 1400 MAIN ST Order Number: 29984104 STE 440 Sales Rep: 073 SOUTHLAKE, TX 76092-7604 Description: CITY OF SOUTHLA Publication Dates: 8/30/2008 -8/31/2008 Description Location Col Depth Linage MU Rate Amount I CITY of SourH- CITY OF SOUT Notice is LAKEhereby given e 13580 1 7U 70 LINE $0.43 $60.20 by the City Council of the City of Southlake, Texas, Sales Discount . what a public b blich daring ($8.50) on September 16,2008, at 5:00 p.m. or im- Misc Fee mediately following $5.00 the Work Session, during the Regular City Council meeting to be held in the City Council Chambers of Town Hall, 1400 Main Street, South- lake, Texas. Purpose Net Amount: $56.70 of the public hearing is to consider the second reading of the following ordi- nance: ORDINANCE NO. 945 Approve a negotiated resolution between the Atmos Cities Steering Committee arid Atmos Energy Corp., Mid-Tex Divi-sion ("Atmos Mid- 1IiIIIIIIIIIIIIII ] Tex or Theomionxpes Company") regard-in the company'sJul ,20rate review mecha- nism filing in all THE STATE O- cities exercising original jurisdiction; declaring existing County of Tarra rates to be unrea- sonable; adopting Before me,a Nc tariffs aaiustmentssaid County and State,this day personally appeared Deborah Baylor, Bid and Legal Coordinator for the Star- Telegram,public consi cited with t a-ram, Inc.at Fort Worth,in Tarrant County,Texas;and who,after being duly sworn,did depose and say that the attached clipping rment ates and fin beds t the was published in the -•ove limed paper on the listed dates:BIDS&LEGAL DEPT. STAR TELEGRAM (817)390-7501 the attached tariffs to be just and rea- sonable; approving /��`/Atmos' proof of I cl 1 revenues;adopting a Signed \` \��r,,, 1 `Y savings clause; de- termining that this SUBSCRIBED/ ordinance was:ORE ME,THIS Wednesd y,, Sej el •er 03,2008. i passed in accordance with the require- I d ments of the Texas Open Meetings Act; Notary Publi declaring an effec- tive date; and re- quiring delivery of this ordinance to the company and legal counsel. City of Southlake Lori Payne City Secretary Thank You For Y our rayment Remit To: Star-Telegram Customer ID: CIT57 P.O. BOX 901051 Customer Name: CITY OF SOUTHLAKE FORT WORTH, TX 76101-2051 Invoice Number: 299841041 Invoice Amount: $56.70 PO Number: PO#20801261-000 Amount Enclosed: $ j INVOICE Draft Only Star-Telegram Customer ID: CIT57 400 W.7TH STREET Invoice Number: 300261981 FORT WORTH,TX 76102 et". `. v .iJ Invoice Date: 9/21/2008 (817)390-7761 - ` ` • Federal Tax ID 22-3148254 Terms: Net due in 21 days OCT - Due Date: 9/30/2008 Bill To: PO Number: 20801261-000 CITY OF SOUTHLAKE .,`, ^"CRC, TI\RY Order Number: 30026198 1400 MAIN ST C[[4CE L. i 1 \J:. i, l STE 440 1 + 1 L "` Sales Rep: 073 SOUTHLAKE, TX 76092-7604 Description: CITY OF SOUTHLA Attn Attn:ACCOUNT PAYAB Publication Dates: 9/19/2008 -9/21/2008 cDTYLA CITY OF SOUT °ORDINAANCEKE fCE NO I3580 1 56 56 LINE $0.44 $48.86 NO. 945 Approve a negotiated resolution between Sales Discount the Atmos Cities ($12.00) Steering Committee and Atmos Energy Corp., Mid-Tex Divi- sion ("Atmos Mid- Misc $5.00 Fee Tex or "The Company") regard- ing the company's rate review mecha- nism filing in all cities exercising original jurisdiction; $41.86 declaring existing Net Amount'rates to be unrea- sonable; adopting -,-, tariffs that reflect rate adjustments 1 consistent with the I.N... negotiated settle- ment and finding the AN jr. rates to be set by the attached tariffs to be just and rea- ♦ 6� V Atmos' e; approving Atmos' proof of ,••r revenues;adopting a /� CHRISTY L.HOLLANDsav oO8 terminigs clause;hte- ; My Commission Expires 'de- termining that this ordinance was 41.7 Jul 31,2012 passed in accordance [,,, ;%J y with the re9uire- ments of the Texas THE STATE Of Open Meetings Act; declaring an effec- County of Tarra tive date; .and re- WI ill iodindaencvee ty the Before me,a N co�sel.y and legal aid County and State,this day personally appeared Deborah Baylor,Bid and Legal Coordinator for the Star- Telegram,publi PPROVED THIIS HE ram, Inc.at Fort Worth,in Tarrant County,Texas;and who,after being duly sworn,did depose and say that the attached clippir TEMBERY OF zoos, !was published in th- -..ve named paper on the listed dates:BIDS&LEGAL DEPT. STAR TELEGRAM (817)390-7501 DURING THE REG- , ULAR CITY COUNCIL MEETING. � MAYOR: Andy ,\l�� IP J wambsganss Signed , .` m _,, ATTEST: Loria Payne, City Secretary 1 SUBSCRIBED„,.,, ,., ORE ME,THIS Wednesda ,Sep!� 24,2008. I / , a// Notary Public • Thank You For Your Payment Remit To: Star-Telegram Customer ID: CIT57 P.O. BOX 901051 Customer Name: CITY OF SOUTHLAKE FORT WORTH, TX 76101-2051 Invoice Number: 300261981 Invoice Amount: $41.86 PO Number: 20801261-000 Amount Enclosed: $ 1