1. Consider and act upon an agreement with D.R. Horton, Inc. for reimbursement through impact fees for the oversizing of a sewer line to serve the Riverchase development.

Executive Summary

The Riverchase development is located generally north of McMillen Road and west of FM 1378 directly across from the Newport Harbor development. D.R. Horton installed approximately 2,700 linear feet of 21" gravity sewer line to serve the development. The sewer line is shown on the City’s sewer master plan and ties into the existing sewer line located south of McMillen Road. The proposed agreement allows the developer to receive reimbursement through impact fees for the oversizing of the sewer line, which is the difference in cost from a 12-inch to a 21-inch sewer line. The sewer line is identified on the City’s Capital Improvements Plan and included in the current impact fee calculation. Easement, surveying and inspection cost are not reimbursable to the developer per this agreement. The cost of the 21-inch offsite sewer line is $202,943.00 and the cost of a 12-inch offsite sewer line is $75,404.00. The credit due to D.R. Horton is $127,539.00

2. Consider and act upon approval of a Resolution authorizing the application for a Collin County Park and Open Space Grant for the purposes of improving playground facilities at Community Park and for installation of facilities adjacent to Birmingham Elementary School.

Executive Summary

The 1998 Collin County Bond election established a pool of funding for park and open space development in Collin County. The County took the approach of establishing a matching grant system as the means of distributing the funding throughout the County. A total of $1.3 million dollars are currently available. Two separate grant applications are being developed by staff. One proposed grant application would be for the improvement of Community Park, located at 800 Thomas, and the other is for the improvement of parkland adjacent to Birmingham Elementary School, located at 700 West Brown Street. The grant is generally set up as a reimbursement program; however, direct payment may be considered by the County under special circumstances. For the Birmingham location, the City’s match will be covered by the value of the land which is approximately $30,000 per acre and a minimum park size of at least 4 acres for a total match of at least $120,000. Additional matching funds for the Birmingham site will be made available through the participation of the Wylie Independent School District (WISD) through a Parent Teachers Association (PTA) affiliated with Birmingham Elementary School. The WISD’s participation is approximately $15,000. Their letter of commitment will be submitted with the grant request. For the Community Park location, the City’s match will be a combination of in-kind contributions of labor, equipment, and materials. The exact amount of matching funds required for City participation is currently being determined as staff is in the process of finalizing a proposed project budget. It is anticipated that the City’s matching fund commitment will be approximately $50,000 and that there is sufficient funding in the 4B Reserve Fund and/or parkland dedication funds for expenditures. These sources would be reimbursed as funds are received from the County.

3. Consider and act upon a Resolution denying TXU Gas Distribution’s request to change rates in the North Texas Metroplex Distribution System.

On March 1, 2002 TXU Gas Distribution Company filed a Statement of Intent with 111 cities to increase the rates charged for natural gas service within the North Texas Metroplex Distribution System and the Dallas Distribution system. On March 25, the City Council approved a Resolution authorizing the City to participate jointly with other cities in the distribution system to independently analyze the gas rate filing and to appoint a representative to a steering committee. In order to do this, the Resolution also suspended the proposed effective date of the rate change for an additional 90 days to July 5. On May 29 the member cities of the coalition voted to urge cities to deny the request, unless a settlement could be negotiated. Settlement negotiations began on June 3 and are continuing. However, because the effective date of the rate change is approaching, the attorney representing and advising the coalition has recommended that cities place the Resolution on Council’s agenda for the last meeting in June. If a settlement agreement is reached, TXU will extend the effective date. The cities of Garland, Arlington and Sachse have already approved resolutions denying the rate increase, with many other cities scheduled to do the same. TXU has contacted the cities individually and offered compromises to the originally requested rates. The attached letter from the TXU representative outlines the proposal which compares the original rate request and the proposed request. If the Council chooses to deny the Resolution and accept the settlement, TXU will extend the deadline for city action.

 Action Taken