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06-E Gas Standing Steering Committee DRAFT F:A TIORNEY\RESWORK\CURREN1\ Gas Standing Steering Committee Agrmt Res March 6, 2006 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, AUTHORIZING THE EXECUTION OF THE GAS STANDING STEERING COMMITTEE PARTICIPATION AGREEMENT FOR CITIES SERVED BY ATMOS ENERGY; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the City Manager or designee is hereby authorized to execute the Atmos Gas Standing Steering Committee Participation agreement, a substantial copy of which is attached as Attachment 1. Section 2. That Tony N. Williams, City Manager, twilliams@paristexas.gov , P. O. Box 9037, Paris, Texas 75461-9037, be and he is hereby designated as the City of Paris representative to receive notices and carry out the responsibilities for the city as set forth in Attachment 1. Section 3. That the payment of the initial participation of 5~ per capita, according to City's population shown in the most recent TML Directory of Texas City Officials is hereby approved. to: Section 4. That a certified copy of this resolution and the approved participation fee be sent Jay Doegey City of Arlington P. O. Box 231 Arlington, Texas 76004-0231 Section 5. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this 10th day of April, 2006, by a vote of _ ayes and _ nays at a regular meeting of the City Council of the City of Paris, Texas. Curtis Fendley, Mayor THE STATE OF TEXAS ~ COUNTY OF LAMAR ~ ATMOS GAS STANDING STEERING COMMITTEE PARTICIPATION AGREEMENT THIS Agreement is made and entered into on this the 10th day of April, 2006, by, between and among the CITY OF PARIS, 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. WIT N ESSE T H: WHEREAS, the cities in the service area of Atmos Gas have worked together collectively in a coalition to participate in the regulatory process to assure gas rates charged were just 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 just and reasonable; and WHEREAS, regulatory changes now require quick response in order to have meaningful input into the rate setting process; and WHEREAS, it is necessary to provide adequate resources to enable cities to act quickly, decisively, and jointly on gas utility regulatory developments; NOW THEREFORE, In consideration of the premises, agreements, covenants and promises set forth herein, it is agreed as follows: 1. Atmos Gas Standine Steerin~ Committee Membership and Executive Committee The CITY and the member cities hereby form the Gas Standing Steering Committee ("GSSC"). Each member city shall, by action of its governing body, approve its membership in the GSSC and designate its representative to receive notices and participate in 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 -1- ATTACHMENT 1 fee for the initial period (approximately one year) is 5~ per capita, according to the CITY's population listed in 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 ofGSSC member cities in gas projects, rulemaking, rate case, and related dockets and appeals thereof, represent the interests of cities in 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 it deems necessary who shall serve at the pleasure of the Executive Committee. The Executive Committee shall also elect a secretary/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 membership fee in full within one-hundred eighty (180) days after notification of fee due. -2- A city is considered notified on the day written notice is sent to its last designated representative on file with the secretary/treasurer. 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 it 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. Le~al Construction In case anyone or more of the terms, provisions, phrases or clauses contained in this agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall be construed as if such invalid, illegal or unenforceable portion had never been contained herein. 9. Entire A2reement 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 written agreement of the parties. 10. No Other Oblieations 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 in parties not signatories hereto. -3- 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 in the exercise of governmental powers and functions. 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 PARIS, TEXAS GAS STANDING STEERING COMMITTEE By: Tony N. Williams City Manager By: Name: Title: ATTEST: Janice Ellis, City Clerk -4- MEMO To: Atmos Energy Cities From: Jay Doegey, City Attorney Date: March 2, 2006 Subject: Creation of a Gas Standing Steering Committee for Cities Served by Atmos Energy The purpose of this memo is to request your city's participation with other Atmos cities in current and upcoming gas utility regulatory and rate making cases before the Railroad Commission of Texas or other court. Several issues currently being addressed include the annual gas reliability infrastructure program- GRIP 1 (2003), GRIP 2 (2004), Gas Cost Review (GUD 9530), Atmos Mid Tex Rate Case, and the cities challenge of the GRIP Rule. More filings are anticipated. The original Gas Cities Steering Committee was formed several years ago in response to a gas gate rate filing by Lone Star Gas Company (TXU Gas and Atmos Energy's predecessor). Over the past six years, the gas distribution systems have been consolidated and the gas company has filed rate cases annually. With the passage of the GRIP statute, this pattern is likely to continue. The current Steering Committee has recommended the establishment of a more formal organizational structure that will enable cities to respond more quickly to these frequent gas rate filings. The Gas Standing Steering Committee organization will work similar to the Electric Standing Steering Committee. The Steering Committee will have authority to act for members with each member retaining the ability to opt out of any proposed rate case action. A model resolution and participation agreement are attached. A participation fee of 5 cents per capita is being assessed to cover the costs of lawyers and consultants in representing the Atmos cities in current and upcoming gas utility regulatory and rate making cases to preserve the cities' regulatory authority and reduce gas costs. Cities that have previously paid this amount to participate in the original cities gas rate case fund are already credited with having made this payment. (See attached list.) Expenses incurred are reimbursable by the regulated utility. Be sure to send in your participation fee so that the Gas Standing Steering Committee can effectively represent your city in pending and future Atmos Energy Corporation regulatory and rate related matters. Attachments Paid Lone Star Gas Cities City of Abilene City of Arlington City of Burkburnett City of Canton City of Clarksville City of Cleburne City of Comanche City of Corinth City of Dallas City of Denison City of Farmers Branch City of Fort Worth City of Grand Prairie City of Haltom City City of Highland Village City of Kerrville City of Madisonville City of McKinney City of Plana City of Richardson City of Rowlett City of Sweetwater City of Temple City of The Colony City of University Park City of Vernon City of Waco City of Waxahachie City of Westlake Town of Flower Mound Town of Highland Park Town of Little Elm Page 1 of 1