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Agenda Packet TC 03/08/2010 - Supplementdft Texas Municipef League , February 25, 2010 Number 2 FCC PREEMPTION OF LOCAL RIGHT-OF-WAY RENTAL FEES? A local controversy in New York State may have serious financial implications for cities across the nation, including Texas cities. A company called Level 3 Communications filed a petition with the Federal Communications Commission (FCC) last year seeking to overturn public property and right-of-way fees negotiated in a decade -old contract between Level 3's predecessor and the New York State Thruway Authority (NYSTA). Level 3's predecessor placed hundreds of miles of fiber optic cable in the NYSTA's right-of-way and paid the negotiated fee. Recently, when Level 3 sought to extend the network using federal stimulus dollars, the company claimed that the NYSTA fees for the extensions were "exorbitant." The company claims that the high NYSTA fees are a barrier to providing service and are thus preempted by the federal Telecommunications Act. Level 3 makes the all -too -familiar argument that municipal right-of-way fees should be based solely on the costs of regulation, rather than being based on the fair market "rental" value for the use of public property by a private company. (Texas cities are required by the Texas Constitution and various state statutes to charge fair market rent for use of public property by private companies. When Congress enacted the federal Telecommunications Act, it made clear that the FCC is not authorized to set the level of local rental payments charged for use of public property.) Whether the NYSTA fees in the contracts prohibit service or whether the fees are "reasonable" in this particular instance are legal and fact issues that a court, rather than the FCC, should decide as a contract dispute. The problem for Texas cities is that Level 3 filed a "Petition for Declaratory Ruling" with the FCC. An FCC order based on that type of petition could potentially apply to every city in the nation and could attempt to impose a national standard for the reasonableness of fees charged for right-of-way use. In addition to considering the Level 3 petition, the FCC is in the process of developing a "National Broadband Plan (NBP)" that will "seek to ensure that every American has access to broadband capability." The plan is part of last year's federal stimulus bill and is scheduled for release on March 17, 2010. Some telecommunications and cable companies are urging the FCC, as part of the NBP and in conjunction with the Level 3 proceeding, to adopt a unilaterally - imposed, federal standard for compensation for use of public rights -of -way that would limit municipal fees to the actual costs of regulation rather than fair market value rents. Considering the fact that right-of-way rental fees are almost ten percent of many Texas cities' general fund revenues, negative FCC action would be a financial disaster. In other words, if the FCC takes action to limit the ability of cities to require market -value rental fees, Texas cities would collectively lose several hundred million dollars in revenue. The Texas Municipal League's national partners, including the International Municipal Lawyers Association, the U.S. Conference of Mayors, the National Association of Telecommunications Officers and Advisors, and the National League of Cities, have participated in various ways at the FCC to ensure that local right-of-way authority is not eroded. The League will continue to monitor and support the national associations' efforts. TCEQ LOCAL GOVERNMENT ASSISTANCE PROGRAMS The Texas Commission on Environmental Quality (TCEQ) is sometimes considered a "four- letter" word by city officials. That's often because the only contact city officials have with the agency is during some type of enforcement action against the city. But the TCEQ also offers valuable assistance to cities through its Small Business and Local Government Assistance (SBLGA) section. The purpose of SBLGA is to help local governments comply with environmental rules prior to any enforcement action. The program gives confidential technical assistance on air, water, waste, and pollution prevention issues without the threat of enforcement. Local governments can request free, on -site multi -media environmental compliance assessments —and all information remains confidential. Environmental consultants under contract with the TCEQ conduct the voluntary audits for environmental compliance. If the audited site corrects the noted deficiencies and the consultant verifies compliance, the site becomes eligible for the Compliance Commitment (C2) Partnership. Through this partnership, a small local government (a city with a population of 50,000 or less) can earn a one-year exemption from routine TCEQ investigations. In addition to providing one-on-one assistance, SBLGA offers a number of compliance assistance tools, regulatory guidance documents, and easy -to -follow checklists for various activities, such as operating wastewater treatment systems, public water systems, and fleet -refueling facilities. SBLGA compliance assistance specialists in one of the TCEQ's sixteen regional offices are available by phone at 800-447-2827 for free and confidential environmental compliance assistance. For more information on the program and tools, visit SBLGA's Web site at www.sbl ag info. OA DON'T FORGET: CURFEW ORDINANCES NEED REVIEW Section 370.002 of the Local Government Code requires that after a city adopts a juvenile curfew ordinance, the city must review and readopt the ordinance every three years. The statute requires that a city: (1) review the ordinance's effects on the community and on problems the ordinance was intended to remedy; (2) conduct public hearings on the need to continue the ordinance; and (3) abolish, continue, or modify the ordinance. A juvenile curfew ordinance expires if a city does not review and readopt it every three years. For more information on this issue, please contact the TML Legal Department at (512) 231-7400 or legal(a�tml.org. LEAGUE COMPLETES UPDATE OF TEXAS HOME RULE CHARTER BOOK In 1994, the Texas Municipal League published a comprehensive book (authored by Terrell Blodgett) on Texas home rule charters. That year, Texas had 291 home rule cities. Since then, the book has been an invaluable guide to city officials who considered the adoption of home rule status or worked through charter amendments. The second edition of the book, released in February of 2010, builds upon Mr. Blodgett's outstanding material, including many updated charts that include data from a 2007 survey performed by the League. The recently -updated book comprehensively reviews and analyzes the origin, evolution, and current status of the now 351 home rule charters in the state. In addition to tracing the historical development of charters, the book offers a current overview of the application and impact of state and federal laws on writing and amending charters. The easy -to -read format provides an excellent guide for elected officials, administrators, and interested citizens. For more information or to order, please click on "publications" at www.tmL= or call 512-231-7400. NOT MUCH ACTIVITY IN STATE CABLE FRANCHISE LAWSUIT Senate Bill 5, which authorized a state -issued certificate of franchise authority for cable and video providers, became law in 2005. Some cable companies were opposed to certain provisions of the bill, and they filed a case in federal court a day after the bill's effective date. In Texas Cable and Telecommunications Association v. P. U.C. Commissioners, the Texas Cable and Telecommunications Association (TCTA) challenged the "grandfathering" provision in Senate Bill 5. That provision requires incumbent cable providers to fulfill obligations under existing franchise agreements until those agreements expire. The lawsuit was filed on September 8, 2005. In 2006, the court dismissed the case on procedural grounds. In 2007, the TCTA appealed the dismissal to the Fifth Circuit Court of Appeals. In 2008, the Fifth Circuit issued its opinion and concluded that the TCTA's claims deserve consideration by the trial court. The case has since languished in the trial court. However, TCTA recently filed a letter with the judge in an apparent attempt to "get things moving" in the case. The letter cites a recent Texas Public Utility Commission report concerning possible "redlining" by state franchise holders. (Redlining is when a company discriminates against certain geographic, income, or ethnic areas.) The TCTA claims that the report supports its argument that holding its members to existing franchise requirements discriminates against those members. Motions for summary judgment have been pending in the trial court for more than a year. TML will continue to monitor developments in the case, but it appears almost moot because only a handful of grandfathered cable franchises remain in existence. MUNICIPAL COST INFLATION RISES The Municipal Cost Index (MCI), developed exclusively by American City and County magazine, shows the effect of inflation on the cost of providing municipal services. The MCI is used to study price trends, make informed government contract decisions, and facilitate sound budget planning. According to American City and County magazine, the MCI for December was 208.4. That's 0.7 percent higher than last month's MCI, and an increase of 1.1 percent over the previous twelve months. The January 2009 MCI was 206.1. TML member cities may use the material herein for any purpose. No other person or entity may reproduce, duplicate, or distribute any part of this document without the written authorization of the Texas Municipal League. 2 -_, Trophy Club Entities Meeting Minutes Economic Development Corporation 413 (EDC 413) 100 Municipal Drive Trophy Club, Texas 76262 Monday, February 8, 2010 6:30 PM Svore Municipal Building Boardroom BOARD MEMBERS: Present: 7 - President James Hicks, Director Dan Bishop, Director Zachary Jeffery, Vice President Dave Glaser, Secretaryrrreasurer Dean Murray, Director Nick Sanders, and Director Rebecca Shuman STAFF AND GUEST(S) PRESENT.' Stephen Seidel, Assistant Town Manager Shannon De Prater, Deputy Town Secretary Glenn Strother, EDC 4B Council Liaison Bill Rose, Council member Call To Order and announce a quorum. President Hicks, noting a quorum of EDC 413, called the regular session to order at 6:35 p.m. REGULAR SESSION 1. 2010-78-T Discuss and take appropriate action regarding EDC 4B presentation to Town Council on April 12, 2010. Mayor Pro Tem Strother relayed that the Council has questions regarding the Board's activities, including what is EDC 4B doing, where is it spending its money and what is the rate ofretum. President Hicks asked if a PowerPoint presentation explaining the Council's concerns would suffice; Mayor Pro Tom Strother said it would. Assistant Town Manager Seidel mentioned that he and Hicks will work on a presentation and forward to the Board for review, comments and suggestions. This matter was Discussion only - No action taken 2. 2010.79-T Discuss and take appropriate action regarding EDC 4B Rules of Procedure and Town Council. Attachments: EDC AS Articles of Inwrooration and Bvlaws.pdf Director Glaser asked why this item was on the agenda. Seidel explained that this agenda item goes a step further than the previous agenda item. Trophy Club Entitles Page 1 Economic Development Meeting Minutes February S, 2010 Corporation 48 (EDC 413) Seidel mentioned to the Board that he will ask Jason Claunch from Catalyst Commercial to be in attendance at the April I Z 2010 Council meeting. This matter was Discussion only - No action taken 2010.80-T Discuss and take appropriate action regarding Regency Center holiday decorations. Director Sanders mentioned that he wanted to begin Discussion ofpumhasing holiday decorations now, to make sure there is enough time to discuss, approve and purchase items for the next holiday season, depending on Regency Center's decision. Director Shuman asked what the goal or this agenda item is. Director Sanders said to promote visitation of the shopping center. Director Shuman asked what the decorations would cost the Board. Director Shuman suggested beautifying the lot for the many car wash events by erecting a sign monument that would allow switching out signs for each organization and adding benches. Director Murray shared creating a lighting event of different displays of neighboring clubs and organizations would aid visitation in the shopping center. Director Sanders moved to Instruct Seidel to move forward with discussions with Regency Center and report back. Director Murray seconded. The motion CARRIED by the following vote: Aye: 7 - President Hicks, Director Bishop, Director Jeffery, Vice President Glaser, Secrelaryfrreasurer Murray, Director Sanders, and Director Shuman 4. 2010-81-T Discuss and take appropriate action regarding a branding initiative. Director Shuman shared that the new home centers are prominently displaying the Clock Tower in their brochures. Shuman believes that now is the time for the Town to take a branding initiative. Director Bishop believes that the Council should be doing the Branding, not EDC 4B. Director Sanders mentioned that branding should be a topic in the presentation to Council. Seidel mentioned adding Branding as a topic in the presentation to ask Council if they would like the Board to move forward andver help fund it. Director Sanders moved to continue discussion/investigation of Branding and to present the concept and need of Branding In the presentation to Council and seek Council direction. Director Shuman seconded. The motion CARRIED by the following vote: Aye: 7 - President Hicks, Director Bishop, Director Jeffery, Vice President Glaser, Secretary/Treasurer Murray, Director Sanders, and Director Shuman 2010-82-T Discuss and take appropriate action regarding EDC 4B Meeting Dates for March, April and May 2010. Attachments: Calendar.odf Trophy Club Entitles Page 2 Economic Development Meeting Minutes February 8, 2010 Corporation 413 IEDC 4B1 Seidel shared that Council has moved their meeting dates tar March and April and gave the Board options of either meeting on their regularly scheduled date in the Public Services Conference Room or moving to another date. Director Shuman moved to reschedule the EDC 48 Board meetings to March 1 and April 5, 2010. Director Sanders seconded. The motion CARRIED by the following vote: Aye: 7 - President Hicks, Director Bishop, Director Jeffery, Vice President Glaser, Secretary/Treasurer Murray, Director Sanders, and Director Shuman 2010-84-T Discuss and lake appropriate action regarding the 2010 ICSC Conference. Seidel is waiting on the costs of hosting a booth and will forward the information to the Board when he receives the information, hopefully this week. This matter was Discussion only- No action taken 2010-83-1` Receive Council update from Mayor Pro Tam Slrother; discussion of same. Mayor Pro Tern Strother updated the Board on the Council's meetings, discussions and actions and answered questions from the Board. This matter was Discussion only -No action taken 2010-85-T Receive Commercial Property update including current projects; discussion of same. Seidel updated the Board regarding: Regency Center - had discussions with potential tenants far the Regency Center and trying to schedule site visits. 26 Acre Tract - Dan Quinto and Sam Jones submitted a redline version of Beck's submission and is waiting on Beck's response. Property at Trophy Club Drive and Bobcat Blvd— had a positive and productive meeting with owners, they are open to some ideas for use ofproperty and building placement, and will be reworking building layout. This matter was Discussion only -No action taken 2010-86-T Discuss and take appropriate action to approve December 2009 Financials. Attachments: December 2009 Monthly Financial Statements.odf Director Sanders moved to approve the December 2009 Financials as presented. Director Murray seconded. The motion CARRIED by the following vote: Aye: 7 - President Hicks, Director Bishop, Director Jeffery, Vice President Glaser, Secretary/Treasurer Murray, Director Sanders, and Director Shuman 10. 2010-87-T Discuss and take appropriate action to approve the January 11, 2010 Regular Session Minutes. Attachments: January 11 2010 Mmutes.odf Trophy Club Entities Pege 3 Economic Development Meeting Minutes February 8, 2010 Corporation 4B (EDC 4B) Director Shuman moved to approve the January 11, 2010 Regular Session Minutes as presented. Director Sanders seconded. The motion CARRIED by the following vote: Aye: 7 - President Hicks, Director Bishop, Director Jeffery, Vice President Glaser, Secretary/Treasurer Murray, Director Sanders, and Director Shuman it. 2010.88-T Future Agenda Items. Attachments EDC 4B Future Ammi Item. Adjourn Director Sanders— discuss any potential use of funds as related to the Town's 25th anniversary Director Sanders— discuss Board involvement with the Chamber and their programs • Director Glaser— asked for a presentation by Adam Adams regarding the Park Bond Projects, including a Trophy Club Park update to be on the March 1 meeting. • Seidel clarified the training requirements for the EDC 48 Board, Director Shuman asked to leave this item on the list. This matter was Discussion only - No action taken A motion was made by Director Shuman, seconded by Director Bishop, that this meeting be Adjourned. The motion CARRIED by the following vote: Aye: 7 - President Hicks, Director Bishop, Director Jeffery, Vice President Glaser, Secretary/Treasurer Murray, Director Sanders, and Director Shuman Meeting adjourned at 8..08 p.m. James Hicl , President Dean Murray, Treasurer/Secretary Trophy Club EnaOes Page 4 Date: March 2, 2010 February 2010 13 Single Family Building Permits issued. This is 22 more permits issued than what was issued at this time one year ago. March 1, 2010 8 single family permits were issued 26 permits in plan review. As of March 2, 2010, 21 of the 26 were ready for pick up and the other 5 were still under review. In 2006, Trophy Club issued only 20 permits for the entire year. Building Permits Issued 2008-09 2009-10 October 11 October 14 November 11 7 November 16 December IF 1 December 13 January IF 12 January 11 February 11 4 fl=�t roar-° 13 March11 17 March April 11 6 April May June11 20 June July11 41 July 11 August 20 �� August September11 20 September 193 �� InTmos energy David J. Park Vice President Rates & Reaulatory Affairs February 24, 2010 City Official Re: Rider GCR - Rate Filing under Docket No. 9762 Enclosed is Atmos Energy Corp., Mid -Tex Division's Statement of Rider GCR applicable for the March 2010 billing periods. This Statement details the gas cost component of the residential, commercial, and industrial sales rates for customers within your city. This filing is for informative proposes only and no action is required on your city's part. Should you have any questions, please let me know. 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