From the Dallas Morning News

PUC to discuss Garland utility's bid today

12:00 AM CST on Friday, January 29, 2010
By ELIZABETH SOUDER / The Dallas Morning News
esouder@dallasnews.com
 
The city of Garland has thrown regulators into a riddle over plans to build transmission lines to bring West Texas wind power to big cities.
 
Garland Power & Light, a tiny utility with 32 employees, bid to build transmission lines in the Panhandle. Garland lost.
 
The Public Utility Commission said it excluded municipal utilities because munis don't have to answer to the commission on building transmission lines. Plus, if anyone in the Panhandle opposed the line, he would have to take his concern to the Garland City Council rather than to a state regulator.
 
"We don't know where the line's going. We don't know how much it's going to cost. We don't know what materials it's made of," said PUC Chairman Barry Smitherman.
 
So Garland sued the PUC. A judge earlier this month told the commission to rewrite its order for the transmission lines.
 
Smitherman plans to discuss the issue today with the two other commissioners at an open meeting.
 
If they decide to include Garland, that could delay the $5 billion project and fundamentally change the way traditional hometown utilities operate.
 
Garland city attorney Brad Neighbor said the Dallas suburb wants to build the lines to bring in money to offset customers' bills.
 
"What we would like to do, and what we feel capable of doing, is building those lines in the most cost-effective manner," he said. "As far as the benefit to be obtained, it's offsetting the cost of transmission" for customers.
 
Municipal utilities don't have to obtain a so-called certificate of convenience and necessity from the PUC to build a transmission line. To get a certificate, a utility must go through a process of notifying residents about a power line and hearing complaints.
 
The PUC then chooses the exact site for a line, the materials and a timeline based on a number of considerations including cost, environmental impact, aesthetics and community impact.
 
Because munis don't have to go through this process, it's not clear how much control, if any, the PUC would have over the construction.
 
Garland attorney Neighbor declined to say how, exactly, the City Council would handle complaints about the transmission line from Panhandle residents.
 
When the commission blocked Garland from participating in the project, commissioners offered eight reasons. A judge struck down four of them, including concern that a muni can't offer residents in faraway places an "independent, objective and statewide adjudication regarding the routing and timing of construction."
 
The judge didn't strike the PUC's concern that it doesn't have jurisdiction over munis.
 
Now commissioners must decide how to rewrite the order that chose bids of about a dozen utilities to build the lines.
 
They could simply edit the order by erasing the four reasons for excluding Garland that the judge disliked, without accepting the city's bid.
 
Or they could rejigger the project and give Garland a piece. Doing so could delay construction on lines that other utilities have already begun to plan. Delays to the lines mean delays to more wind power projects.
 
Smitherman declined to say which way he's leaning.
 
"I think it's incredibly important that we move forward with speed," he said.
 

 
As of this posting, I don't have any information on the results of Friday's Public Utilities Committee meeting. At stake for Garland ratepayers is the ability of GP&L to offset future transmission costs with income-producing infrastructure.
 
The gist of the PUC chairman's statements in the article above was that it's too late to reconsider how the PUC made its selections of CREZ operators, no matter if it was done legally or properly, that only speed matters. Judge Yelenosky has already disagreed and sent the decision back to the PUC, stating that there is no evidence Garland’s proposal would cause a relevant delay in the CREZ process.
 
I can find no relevance to the stated concern that the PUC doesn't regulate municipally-owned utilities. The transmission lines being debated will be regulated by ERCOT, which regulates our current transmission lines. There was an earlier suggestion that seemed to imply landowners would be better treated by the mega-utilities than by a municipality. As the judge stated in his order, the "PUC relied upon factors that are not relevant to providing transmission capacity in a manner most beneficial and cost-effective to electric customers and based its decision on underlying findings that lack substantial evidence" (emphasis added). Nothing in the article above gives any indication that the first concern is cost-effective delivery for electric customers because GP&L can reduce that cost.
 
The one point in the article that I don't follow is the reference to GP&L being a small, 32-person utility. GP&L is one of the largest municipally-owned utilities in the state and country and has far more than 32 employees. GP&L operates several power plants and maintains miles and miles of transmission and distribution. Maybe it was just a typo. GP&L isn't nearly as large as mega-utilities like TXU and Reliant but local services and reliability are much higher. Also, GP&L power costs have been lower than TXU for years (although GP&L doesn't currently compare as well against numerous companies other than TXU during this period of extra-low costs for natural gas).
 
I expect to learn tomorrow in a Council briefing if Garland ratepayers have been given an opportunity to contain costs or if they have to pay the mega-utilities for what we could have done ourselves.
 

Draped with the look of winter, a new city entryway along the PGBT is becoming increasing visible as work continues on the Eastern Extension. Miles Rd, visible in the foreground on the right and behind the front-end loader, is the city limit line with Sachse. Everything beyond in this picture is in Garland. Pylons show the route of the new highway and bridge that will span Rowlett Creek. The overpass in the background is Firewheel Parkway and the AMC is visible through the trees.

 
There is a lot of construction in northeast Dallas County: the Eastern Extension of the President George Bush Turnpike (SH-190), Lavon Dr (SH-78, starting in Garland and continuing north, eventually past Wylie), Murphy Rd between Garland and Sachse, and more is coming. The latest PGBT progress update from the North Texas Turnpike Authority is here. Note route map on page two. Here is an extracted update for our section:

 
In Section 28, on the east end of the Rowlett Creek bridge, the earthwork subcontractor has constructed the bridge header embankment. The contractor continued drilling bridge support shafts. Crews also began placing the retaining wall panels on the project and installing the roadway’s underdrain system.
 

 
Anyone experiencing it knows it hasn't always been easy but the general mood has been one of expectation and acceptance rather than complaining. A recent article in the Dallas Morning News captures the input of several District 1 residents and the impacts that have been felt in the area—some of them most unexpected. Read on:

From the Dallas Morning News:

Multiple road projects cause headaches for residents of Sachse, Garland

12:00 AM CST on Monday, January 18, 2010
By RAY LESZCYNSKI / The Dallas Morning News
rleszcynski@dallasnews.com
 
While the boom has died down in northeast Dallas County, the effects resonate in the form of construction disturbances – traffic and otherwise – near the Garland-Sachse border.

Heavy traffic flows around road construction near the intersection at Sachse Road on Highway 78. The tollway extension will be a relief - when it's finished. COURTNEY PERRY/DMN

 
A mall, a turnpike and the housing market brought prosperity to the area in the 2000s. The population of Sachse practically doubled.
 
Residents who live in the area say the projects are creating headaches, but they're looking forward to the benefits that will come when the work is complete.
 
The North Texas Tollway Authority's plan to link the Bush Turnpike eastward from State Highway 78 to Interstate 30 is good news to Mary-Kathryn Sherrard. She has watched traffic back up for years near her home in the Valley Creek neighborhood of Garland, which absorbs the turnpike's current endpoint.
 
"It's been getting more and more congested," she said. "Nobody likes to put up with the construction process, but the outcome is going to be good."
 
But wildlife near Rowlett Creek was disturbed by the construction, and Sherrard was bitten by a copperhead that presumably lost its home. A Garland official said plenty of other snake sightings have been reported in the area.
 
"As soon as something like that happens to you, people come out of the woodwork and tell you their stories," Sherrard said. "I hear a lot of complaints about increased noise from raccoons and armadillos. And complaints about equipment as well. They're running a crew all night and an early morning crew and sinking piers for the bridges, and it's really noisy."
 
Garland resident Kyle Maxwell reported a longer-than-normal wait at the Bush Turnpike-Highway 78 interchange Thursday night as a temporary traffic light malfunctioned.
 
"Not to mention the ongoing safety issues I see every day as I traverse the interchange," he said. "I've lived in Dallas all my life and commuted through some of the worst traffic flows we've had, and while I'm glad to see that this area is getting some construction, it strikes me as poor project planning."
 
North of Firewheel Town Center, the Texas Department of Transportation is widening Highway 78 from four lanes to six.
 
In Sachse, residents grew increasingly wary of their own deteriorating asphalt and voted in 2006 to spend $16.65 million for street and road improvements. Two of the city's projects line the border with Garland, and two are connectors to fast-growing Murphy.
 
Now that all of the construction has hit Sachse simultaneously, progress equates to a bigger mess than ever at rush hour. It is not uncommon at peak times to wait three or four full cycles for traffic signals at Highway 78 and Murphy Road or Fifth Street.
 
Relief will be drawn-out. The tollway extension won't open until late 2011.
 
The Highway 78 project started in November and will take 300 workdays – and will soon be extended to a second project another five miles to Wylie.
 
Sachse resident Chance Lindsey is excited about the new lanes on the city's "main drag."
 
"So far, I think they have done the best job possible keeping traffic flowing," Lindsey said. "It is much tighter, but at least there are still two lanes each way."
 
Sachse City Engineer Billy George said Murphy Road is scheduled for April completion, Fifth Street will run into August, and Bunker Hill Road reconstruction will take all of 2011.
 
Garland officials said the construction on their side of Murphy Road has resulted in street closures that affect garbage pickup and some services. Heavier traffic is reported on back routes near the Firewheel at Garland golf course and near the mall, resulting in longer waits on roads not directly affected.
 
"Because everybody is trying to avoid 78, those roads have deteriorated even further," Sherrard said.
 

 
A minor note: If you saw the article in the Metro section of the DMN, the artist's rendering of the Extension route was not totally accurate. It showed a loop in the route that doesn't exist. A more accurate depiction is the map at the NTTA link above, and a slightly more accurate map than that is here (also not to scale but it does show one more entrance route next to the Firewheel Town Center).
 

At the request of the Fairways at Firewheel neighborhood, I asked that the Council consider establishing quiet zones in Garland over two years ago. Since then, I have posted what they are, what other cities are doing, and an update. When I made the request, I didn't know that the Transportation Dept was already well along on their research. I shudder to think how long this process might have taken if they had not initiated their research when they did.
 
The federal government allows cities to establish quiet zones but, basically speaking, crossings have to be safer with a quiet zone than than they would be if train horns are used, a tough standard to meet. Although the formula allows variation, essentially crossings must have gates that close and flashing lights. Medians are usually required so vehicles cannot leave their lane to drive around the gates. The graphic gives a good idea of the necessary types of warning measures.
 
Over the years, Garland had been upgrading its crossings so many qualified before the effort to establish a quiet zone. It was the exceptions that prevented moving forward. Finally, the last crossing along the KCS line, running from Sachse through Garland to Dallas, needing to be upgraded with gates is the State St crossing near City Hall. The state will pay for a portion of the cost to install the necessary safety devices and the city will cover the rest. However, KCS will do the construction. We've been waiting on that last step until we were recently notified that KCS expects to start construction in March. Construction won't take long but the approval process will not yet be over.
 
By law, notifications have to be sent to various interested groups and we must wait for them to respond. Warning signs that the crossing is in a quiet zone must be posted at the crossing.
 
We're still a few months away from having a north-south quiet zone, but it should be this year, unforeseen delays notwithstanding.
 
This news was part of the Capital Improvement Program presentations given by staff at Monday's Special Work Session. Robert Wunderlich, department director, also announced that Sachse will include the Murphy Rd crossing in the quiet zone. That will allow a quiet zone literally all the way through Garland and beyond. I very much appreciate how the council and staff in Sachse so closely work with us on issues that affect us both. They are generous and professional and both sides of the city limits benefit from the close relationship.
 
I'll be excited to post one last time on quiet zones, letting everyone know when it has been approved. Or, listen and if you don't hear anything but a rumble, you'll know.
 

A lot of rumors and fears have been spread in just a couple weeks about Public Improvement Districts. As I've written each time I've reported on them, first here and then here, there are pros and cons. In talking to people, I learn quickly that they've been led to believe that PIDs can be created by the city for any number of reasons and some have believed that every neighborhood would have a PID and annual assessments (read: taxes).
 
The city cannot start a PID under any circumstance. PIDs are created by property owners that have banded together and wish to create a district, as the state gives them full right to do. In fact, state law protects the owner from the city (or county). The city does have to approve any PID so there are checks and balances.
 
PIDs can be useful tools for commercial areas and neighborhoods, as the Dallas Morning News article below relates (printed in the Saturday Metro section). Overall, the record is positive for PIDs but I have several concerns. For that reason, I have advocated that Garland develop a policy that would guide the approval of PIDs. We can't forbid them but we don't have to approve them either. Rationally, the benefits vs cost of an proposed PID should be weighed as any development or zoning case is weighed. However, to the latter two, staff and the Council have a great deal of familiarity. To the former, we don't.
 
A policy is just that. The Council can use it to provide consistency in its decisions and the staff can follow it as a guideline. In truth, the Council, nor any future Council, is bound by a policy. They can follow or not. The rule in Garland during my time on the Council has been to follow our policies. When they get outdated, they have been revised. I have dealt with other cities when they chose to not follow their policies. I've seen it first hand both ways.
 
I've seen the debate become very politicized, which perhaps shouldn't be too surprising considering a local election season is just starting to get into full swing. We've seen a few I-was-for-it-before-I-was-against-it type of "adjustments" recently. No matter. Citizens deserve full and unbiased information so they can give competent advice on what a policy should contain. Toward that end, Mayor Ron Jones announced last week that he would be hosting an information session on PIDs Feb 4. I'll post more information on that session later.
 
Some have suggested that even having a policy is tantamount to giving tacit approval. I agree that a policy could serve to alert citizens not otherwise aware that PIDs may be an option for certain neighborhood challenges. But do we pretend that such tools are not available and do we ignore the law? When should a Council decide what to hide and when not? The primary purpose of this blog has been to share information with citizens, not hide it. I have advocated planning for years and my platform for serving has always been that we need to plan for our future, not keep our heads buried in the sand. Having a policy on PIDs allows us as a community and as a Council to think ahead and be proactive, not wait until owners arrive at the City Secretary's office before we contemplate what will best serve them and our community as a whole.
 
Frankly, we don't have the luxury or the time.
 

From the Dallas Morning News:

Texas' public improvement districts can boost neighborhoods, at cost of extra taxes

10:20 PM CST on Friday, January 22, 2010
By IAN McCANN / The Dallas Morning News
imccann@dallasnews.com
 
As Rosemary Reed looked for a place to build her house eight years ago, she was struck by the differences between neighborhoods in Grand Prairie and Mansfield.
 
"I was astounded at how the newer neighborhoods [in Mansfield] had already started going downhill," the Grand Prairie resident said. "This was a 20-year-old neighborhood, and it looked better than those other ones did."
 
She credits the public improvement district in the Westchester neighborhood she chose in south Grand Prairie. The district, one of 15 in the city, charges property owners an assessment on top of other taxes to pay for upkeep of amenities such as screening walls and landscaping.
 
"I'd rather pay an extra tax and have my house worth something," said Reed, now president of the Westchester homeowners association.

DISTRICTS' USES   Texas authorized public improvement districts in 1987. A few examples of how neighborhoods and business districts have used them:   Grand Prairie   Westchester: Neighborhood entry point landscaping Oak Hollow/ Sheffield Village: Replace wood screening fences with new walls High Hawk: Maintain a neighborhood baseball field   Dallas   Downtown: Security cameras and police bicycle patrols Prestonwood: Round-the-clock security patrols Uptown: Landscaping, brick crosswalks and street lighting

 
The ability to maintain public improvements – and, by extension, property values – is the prime reason Garland City Council member Doug Athas would like to see public improvement districts in his city.
 
"We're going to have to look at a number of ways to stimulate investment in our neighborhoods," he said. "It is empowering neighborhoods to do something for themselves."
 
But not all in Garland agree with Athas. Most of the dozens who spoke at a council meeting this week opposed such districts, concerned about the additional taxation they would bring.
 
Some said there are already tools available, such as bond-funded neighborhood vitality grants or simply raising money from those who support a given project. Others objected to being forced to pay a tax they might oppose.
 
"We need to look very carefully at something that allows a 51 percent majority to tax another group of people," said Tom Cote, a Garland neighborhood association president. "In my neighborhood, if we had a wall that was collapsing, we'd have a garage sale. We'd collect the money among ourselves."
 
Accountability is the top reason council member Larry Jeffus opposes the districts. People can easily find their council representatives to express their opinions about spending and other issues. But a public improvement district board might not have similar transparency, Jeffus said.
 
An informational meeting on the issue is planned for 5:30 p.m. Feb. 4 at Garland City Hall.
 
State law has allowed public improvement districts for more than 20 years. They are often used in business districts, such as Dallas' Uptown area, to add entry signs, enhance landscaping and promote special events. Grand Prairie is a leader in using them in residential areas.
 
To form a public improvement district, more than 50 percent of property owners must sign a petition, though some cities, including Dallas, require a higher threshold. Once a district is approved, the city council approves a work plan and sets an assessment rate each year. Property owners pay an annual assessment, usually based on property value, similar to taxes.
 
In Grand Prairie, rates range from 8.5 cents per $100 of property value to 21.5 cents per $100. Most districts are clustered south of or near Interstate 20, and about half were established in existing neighborhoods. The city requires each new development to have a public improvement district, a homeowners association or both.
 
Dianne Woodard said collecting more than 1,100 signatures to form the Oak Hollow/Sheffield Village district took nearly two years.
 
She said she and a group of homeowners wanted the district so they could replace aging fences along Great Southwest Parkway and other major thoroughfares.
 
"It was horrible – it made you cringe just to turn in here," Woodard said. "Our area is the first housing area on Great Southwest south of I-20. It's one of the main ways people get to the lake, and all the areas south of us have PIDs. We looked bad compared to them."
 
Since the district was established in 2006, its results have won over some of those who objected to it, Woodard said. And the district has had the effect she wanted.
 
"By putting up that [new] fence, we've noticed that people are improving their property," she said. "It makes it a place where people want to live."
 

Time gets limited and I can't do everything I like; you know the feeling. I do like to check the DMN Garland Blog when I can because Ray Leszcynski and Karel Holloway have been doing a good job posting bits of news that doesn't make the big paper or we get a heads-up of a coming story. Here are the three things that caught my attention today:
 

Please click the graphics to follow the links and to read the full posts!

Kinda cool to see my pic and an announcement of my new role at the National League of Cities. Genuinely unexpected. More on that front in future posts.

Didn't hear the Mayor say he was headed to DC and the White House so this one was news to me. It's good. When he tells them what he really thinks, they may kick him out but at least he'll get to say it. Maybe he can stay long enough to explain Massachusetts to them.

I've yet to finish writing my post on Tuesday's meeting when the Council had a public hearing on Public Improvement Districts. It was a raucus meeting with lots of entertainment. Several ex-Council members were in attendance. Well, it was once again a lot like when they were sitting behind the horseshoe. It's a hard post to write to cover the territory and stay concise. A lot about PID's is challenging, even writing about them.

 
There were important posts too on School Board Trustee Larry Glick and his travels to every GISD school, and another on a tour this weekend of the 200-300 year-old trees in the Spring Creek Forest. I'll be recovering from a Scout all-nighter or I'd love to be on that tour!
 

"Well, I don't know what will happen now. We've got some difficult days ahead. But it doesn't matter with me now. Because I've been to the mountaintop. And I don't mind. Like anybody, I would like to live a long life. Longevity has its place. But I'm not concerned about that now. I just want to do God's will. And He's allowed me to go up to the mountain. And I've looked over. And I've seen the promised land. I may not get there with you. But I want you to know tonight, that we, as a people, will get to the promised land. And I'm happy, tonight. I'm not worried about anything. I'm not fearing any man. Mine eyes have seen the glory of the coming of the Lord."

 
These were the words of a prophet—on the next day the Rev Martin Luther King, Jr, would die at the hands of an assassin.

 
I think too often King is remembered as a man that fought for the civil rights of black people. But I don't remember him that way and don't read that message in his speeches. Certainly the crowds that gathered for his speeches were heavily black but his words were always to a broader audience, the audience of all people, and his message was of freedom and equality for all people.

 
He knew that inequality for any man meant there could be inequality for all men and, also, that what we openly grant to all others, we preserve for ourselves.

 
On this day that we celebrate his birth, I wish to recognize the huge gift that he secured for all people in this country and for so many across the planet.

 
I know he did see the promised land, and, by the power of his message, he took many to view the promised land. Our journey since his death has taken us closer to the promised land. We have not arrived but we are closer than we have ever been in history. If we keep our path forward to the promised land, we shall arrive. We, as a people, will get to the promised land.

 
I'm proud that the vision and promise that Martin Luther King, Jr, shared with all of us is closer to reality today than ever before. I'm not worried—we will get there.

UPDATE: I'd also like to point readers to today's recognition of Dr King posted by Scott Johnson at Power Line Blog. In numerous ways, it is a prologue to my comments. We even use the same photograph.
 
One point by Mr Johnson especially strikes me; he says, acknowledging that Dr King was only 39 when he was killed, "He seems too young to have accomplished so much, or to have maintained his judgment under such trying circumstances." It's the latter that more strongly grabs my attention. Maybe it has always been so and youth and naiveté blinded me, but I feel so strongly that around us every day are so-called leaders that have not maintained their judgment or promises. None of them are ever so remotely challenged as was Dr King. I hope we can take a few moments to truly consider the many gifts that Dr King gave us. Let his call for freedom, for all people, be our inspiration.
 

From the Dallas Morning News:

Garland committee works to rehab animal services

09:52 AM CST on Saturday, January 16, 2010
By RAY LESZCYNSKI / The Dallas Morning News
rleszcynski@dallasnews.com
 
The Garland Animal Services Committee, in the midst of its own evolution, is taking on a restoration project.
 
In just its second meeting as an expanded entity, the committee on Friday looked at prospects to replace the oldest animal shelter in the area, a policy to adopt out pit bulls, a comparison of area shelters, and a need to better establish community outreach, particularly with rescue groups.
 
The committee work is taking place under the watchful eyes of those who have frequented City Hall to protest euthanasia by gas at the animal shelter.
 
Garland remains the largest city in the state to use a gas chamber, and even after a revised policy that went into effect Dec. 28, it will probably gas about 1,000 animals in 2010.
 
Though opposed as ever to any gassing, those who registered comments Friday also seemed willing to allow the committee a chance to work toward restoring confidence in the community.
 
On behalf of Garland Citizens to Reform the Animal Shelter, Dr. John Pippin proposed that the committee and shelter staff develop clear guidelines for the performance, recording and tracking of all euthanasia methods.
 
"As we have begun to move away from gassing to injection, there is concern in the Garland animal protection community that there are few and inconsistent controls on the methods of injection euthanasia" at the shelter, Dr. Pippin said, detailing differences in methods.
 
Current policy to allow individual animal services officers the decision on what method to use was criticized as inconsistent with professional guidelines. Other speakers sought to ensure that the officers had all been properly trained in injection euthanasia.
 
Still others commented on the methods and format of the committee itself – a conversation scheduled for Tuesday's City Council work session. Mayor Ron Jones and council member Darren Lathen have initiated an agenda item to "discuss the scope of the Animal Services Advisory Committee."
 

One point that has found some agreement is that Garland needs a new shelter. That's a $6 million or $7 million proposition, according to Pat Fowler, the committee chair and Garland's longtime health director.
 
"I've never known an animal shelter to fail a bond election," Fowler said.
 
However, Managing Director of Finance George Kauffman testified that the city's tax rate is heavy on the debt service side. Council members say the city will not consider another bond project until at least 2013. Kauffman said the other option, council-instigated certificates of obligation, is somewhat unlikely.
 
Since about 2002, the shelter has struggled to keep pace with the city's influx of pit bulls and pit bull mixes. Under current policy, those can be released only to their owners. But the enclosure policy would give pit bulls and mixes with proper temperament a chance at adoption.
 
The committee also heard about off-site adoption events, a revised Web site and a staff liaison to schools and rescue groups as a means of addressing current issues.
 
"We will never be able to adopt our way out of the problem," Fowler said. "We have got to find ways to reduce the number of animals coming in."
 

 
A note to the story: Mr Fowler did serve as Garland's health director for many years but he retired several years ago. I am not sure as the story reads the correct impression is given.
 

We knew late last month that Garland's case against the Public Utility Commission would be in Garland's favor. We just didn't know how the final order would read.
 

City of Garland Press Release:

District judge rules in favor of Texas ratepayers

AUSTIN -- In a big win for Texas ratepayers, state District Judge Stephen Yelenosky today has reversed an order of the PUC awarding billions of dollars of transmission projects. The City of Garland had alleged that the Public Utility Commission failed to properly consider the needs of electric customers when it awarded the wind-related projects last year and failed to realistically consider low-cost public power entities like Garland.
 
As a consequence of his ruling, further transmission line development relating to the so-called Competitive Renewable Energy Zone (CREZ) process must be suspended until the PUC properly weighs the costs and benefits to electric customers.
 
The decision comes in a case brought by Garland’s municipally-owned utility, which has consistently advocated for affordable power on behalf of its nearly 200,000 electricity users. Garland submitted a proposal in 2008 to participate in the CREZ construction process, but it was rejected by the PUC in favor of potentially higher-cost plans.
 
Besides requiring the PUC to reconsider Garland’s proposal, Judge Yelenosky’s decision potentially could lead to other CREZ savings—savings that would be enjoyed by all ERCOT ratepayers—because the decision requires the PUC to consider costs and benefits of all the CREZ proposals.
 
The overall cost of the CREZ lines has been put at about $5 billion—or $4 for every ratepayer in ERCOT.
 
"This decision simultaneously encourages customer protection and the development of clean energy—goals that benefit all Texans," said Garland City Attorney Brad Neighbor. "The PUC should not put the interests of big transmission line developers before the interests of Texas ratepayers. We applaud this ruling today."
 
But Neighbor cautioned that if the PUC again excludes municipally-owned utilities in favor of high cost out-of-state and foreign companies, Texas consumers will end up losing again. In the order that was reversed today by the Court, the PUC had awarded hundreds of millions of dollars in CREZ construction projects to foreign and out-of-state companies, including a Spanish consortium.
 
Because it is municipally-owned, the Garland utility operates on a not-for-profit basis, does not pay various taxes as commercial ventures do, and can borrow money at a lower cost. Such advantages allow Garland to build transmission lines at a lower cost than other entities.
 
A staff expert at the Texas Public Utility Commission presented evidence during the agency’s initial CREZ deliberations that Garland, of all the applicants, enjoyed the lowest cost of debt. The expert stated that "assigning these facilities to the companies with the lowest cost of capital is likely to result in the CREZ transmission plan that is of the lowest cost, and, consequently, in the public interest as it provides the most potential benefits to consumers of electricity in Texas."
 
The PUC staff had initially recommended that Garland and another municipally-owned utility receive a substantial portion of the construction projects—valued at approximately $400 million—but unexpectedly reversed itself shortly afterwards. In May 2009 the PUC awarded CREZ development projects to Oncor, Sharyland, a Spanish consortium and other transmission developers—all with presumably higher capital costs than those enjoyed by Garland’s utility.
 
In making this initial decision, the PUC appeared not to have explicitly considered what’s most cost-effective for electric customers. In an earlier letter to parties in the case, Judge Yelenosky noted that the "PUC relied upon factors that are not relevant to providing transmission capacity in a manner most beneficial and cost-effective to electric customers and based its decision on underlying findings that lack substantial evidence."
 
He also noted that there is no substantial evidence that Garland’s proposal would cause a relevant delay in the CREZ process.
 
"But what could delay the process is failure by other parties to immediately comply with the court’s order," said Garland City Attorney Neighbor. "We’re ready to go. Our plans will save consumers money while encouraging the development of clean energy. We have the experience to build, and our not-for-profit status and tax and financing advantages mean we can save money for Texans."
 
The City of Garland, through its municipally-owned utility, already operates more than 130 miles of transmission lines that serve not only its own customers but also other residents in the Dallas area. Garland is one of 13 transmission operators certified to operate in ERCOT.
 

 
Much of this probably comes out ot the blue for most Garland ratepayers because there has been little news coverage. Garland's City Attorney's office has prepared additional information as a primer.
 

Quick Facts about Competitive Renewable Energy Zones and the City of Garland

What is the CREZ process?
CREZ refers to “Competitive Renewable Energy Zones,” which are zones that mark the site for transmission line construction to serve wind developers in West Texas and the Panhandle. The Texas Legislature adopted Senate Bill 20 in 2005 that established the so-called CREZ process whereby the Public Utility Commission would delineate the zones and then assign transmission developers to build the lines. The PUC delineated the zone boundaries in July 2008 and assigned developers in May 2009. Under current estimates, the total cost of CREZ construction could top $5 billion.
 
What has been Garland’s involvement in the process?
The City of Garland was among several transmission service providers to submit proposals to build CREZ lines. Citing its low financing costs and other advantages specific to municipally-owned utilities, PUC staff recommended that Garland construct roughly 80 miles of transmission lines in the Panhandle. However, the PUC staff later reversed that recommendation in favor of a higher-cost utility that is located farther way geographically from the Panhandle. The Texas PUC affirmed those recommendations in May 2009.
 
Garland appealed the decision to state court, claiming that the PUC did not properly consider the welfare of electric customers when it made its decision. In a letter filed Dec. 21, 2009, state District Judge Stephen Yelenosky wrote that the “PUC relied upon factors that are not relevant to providing transmission capacity in a manner most beneficial and cost–effective to electric customers and based its decision on underlying findings that lack substantial evidence,” he wrote.
 
How can Garland do the work for less?
Because it is municipally-owned, the Garland utility operates on a not-for-profit basis, does not pay various taxes common to commercial ventures, and can borrow money at a lower cost. These advantages should likely lead to lower costs for electric customers. In testimony filed on Nov. 14, 2008, a PUC senior financial analyst identified Garland as the applicant with the lowest cost of debt. “Assigning the facilities to the companies with the lowest cost of capital is likely to result in the CREZ transmission plan that is of the lowest cost and, consequently, in the public interest as it provides the most potential benefits to the consumers of electricity in Texas,” he stated.
 
Does Garland have the capacity to participate in the CREZ projects?
Yes. As one of 13 certified transmission operators inside ERCOT, Garland already owns and operates more than 130 miles of lines. The Garland lines serve both its own residents and also those in the Dallas area. By contrast, Sharyland Utilities L.P., which was initially rejected for the CREZ development but then later was awarded more than $300 million in projects, currently owns and operates less than 20 miles of transmission lines.
 
Will Garland’s action undermine the state’s wind plans?
No. Garland’s proposal allows for the construction of transmission lines, but on a more cost-effective basis for electric customers than other proposals. Clean air and affordable electricity benefit all Texans. Garland’s proposal helps achieve both goals. In an earlier letter to parties, state District Judge Stephen Yelenosky stated there is no evidence that Garland’s proposal would cause a relevant delay in the CREZ process.
 

But for thieves, we had almost no crime in December. Unfortunately, we had plenty of thieves, enough to drive our crime stats back up from the November drop.
 
At a joint meeting and party of the Carriage House and Neighbors Who Care neighborhood associations, Officer Robert Duncan told members that a rash of home burglaries had been committed in the neighborhoods along the axis of Firewheel Pkwy. One burglar, probably thirty-something, driving a four-door black car, has been described to police. There is a chance the same person was responsible for multiple break-ins.
 
The break-ins were during the day and always from the rear, usually by kicking in the back door but also through a window. Except in the one case, no one was home.
 
Officer Duncan advised everyone to watch the streets for suspicious people not usually in the neighborhood, especially anyone sitting in a car that might be monitoring people coming and going or acting as a lookout for the burglar(s).
 
It is always important to keep garage doors down, your house locked, and to be diligent, but the risks might be higher right now until these burglars are caught. Keep an eye toward protecting your neighbor's property as if it were your own. Look for suspicious people even while driving through alleys. Working together, we'll all be safer.
 
It's okay to call 9-1-1 to report suspicious people, cars, and actions. It is a help to the police and gives them information that could be helpful solving crimes. A report of a suspicious vehicle in one neighborhood might help catch a thief that decided to move on to a different neighborhood.
 
Forty-three of the 72 theft cases were for shoplifting. That means many offenders were actually apprehended. The spike in that category might be related to the Christmas season but we don't always see a spike in December.
 
If you want to review the areas that have reported incidents over the last month, download the complete report here for address-by-address information that includes your neighborhood. If you are reading this but do not live in District 1, you can get reports for your area here on the Police Department's website.
 

 
P.S. If you are in the Carriage House and Neighbors Who Care neighborhoods, look for the Facebook group Carriagehouse Neighbors for timely updates and neighborhood communications.
 

The Council has two retreats each year. The summer retreat follows the Spring election and usually focuses on personal interactions, goals, and will include some early budget forecasts. The Fall retreat is usually more financial. This year's retreat will actually be a Winter retreat because it is not until next Monday.
 
The agenda for the retreat was posted today and it doesn't look like previous retreats. The list of items says that we'll be taking a close look at where we've been and where we're headed financially. Then we will take a look at future development. I read it as "Grow the City." At least, that's why I have my fingers crossed. However it turns out, it will be an education.
 

 

THE GARLAND CITY COUNCIL
FINANCIAL RETREAT
 
Fire Administration, Support Services,
and Training Facility – Room 419
1500 East State Highway 66
Garland, TX 75040
 
January 11, 2010
9:00 a.m.
 
AGENDA

Introduction and Opening Comments Historical Financial Trends Long-Term Financial Forecast Development Capacity and Characteristics Economic Development Presentation – Mr. Michael Buckley Council Discussion Regarding Economic Development Closing Comments

 

 
Professor Michael Buckley is a visiting lecturer and clinical professor in the School of Architecture at the University of Texas - Arlington. He formerly directed Columbia University’s Master of Science in Real Estate Development Program and heads the Center for High Density Development. As president of Halcyon Ltd., a development advisory firm, he has an international reputation for mixed-use retail and strategic planning for underutilized sites such as Washington’s SE Federal Center, Moscow’s Manezhnaya complex, Puerto Rico’s El Triangulo Dorado Plan and the new Oso BlancoScience City. A former trustee of the Urban Land Institute (ULI) and chairman of the Urban Mixed-Use Council, Professor Buckley ran the ULI Program Committee and is now responsible for the Affinity Groups at the Pension Real Estate Association conferences. He holds Bachelor of Arts and Bachelor of Science degrees from Rice University and a Master’s Degree in Advanced Studies from the Massachusetts Institute of Technology. He is a board member of the Association of Foreign Investors in Real Estate and of Interlink Group in Puerto Rico, past president of the Connecticut Society of Architects, and the author of numerous articles on mixed-use retail and urban revitalization.
 

Yesterday, Dallas Morning News reporter Ray Leszcynski posted on the DMN Garland Blog that Garland sales tax collections were at a four-year low and today the DMN had a similar article revealing a similar situation in most area cities. The blog report showed Garland down 9.8% from last year and the lowest since April 2006. Today's article reports that collections were down 11% across the state. Some area cities, including Richardson, Plano, and Allen, did better than last year.
 
The numbers available yesterday to the DMN were preliminary. The city received final numbers today. Garland is actually down 11.9% from one year ago.
 
The drop in Garland doesn't come as a surprise because we've been trending that direction for a while. The Budget and Research Dept has done an excellent job forecasting revenues and tracking us to budget. Through November (fiscal year started Oct 1), actual collections have been over $3.4 million. We are $43,897 above budget.
 
The drop is not welcome news but it's close to what was projected.
 

UPDATE: The hazards of comparing data that differs by minor time periods and being preliminary or final are risky. Bryan Bradford, budget and research director, shared this additional information to help better frame the picture:
 

 
The latest DMN article references sales tax receipts received in January 2010 – which is for transactions made by consumers in November 2009. These numbers will be reflected in [our report] in February.
 
Below is what the numbers will reflect:
 

	Total Sales Tax YTD:	$4.96 Million
	Decrease from same period last year:	$624,000 (11.1%)
	YTD:	$86,000 (1.8%) above budgeted projections

Current trends reflect that annual Sales Tax revenues have declined $3.0 million a year or 12.8% from pre-recession levels.
 
For November 2009 Transactions, sales tax collections declined $157,000 (9.4%).
 

 
Bottom line: While the decline is not welcome, lower collections are not negatively impacting the budget.

 
UPDATE 2: Figure from November, 2009, Dashboard Report indicates sales tax collections tracking closely with budgeted amounts:
 

Garland Police Dept Press Release:

Holiday DWI Patrol Results

Garland Police stepped up their DWI patrols from December 18 through January 3 in an effort to keep Garland citizens and visitors safe during the Christmas and New Year Holidays.
 
The additional enforcement resulted in 25 DWI arrests and there were no fatality wrecks reported during the same time period.
 
The additional patrols were funded by the Impaired Driver Mobilization Grant that is sponsored by TxDOT. The grant’s aim is to enforce DWI laws for all drivers with a special emphasis on Driving Under the Influence by Minors.
 

CONTINUE TO KEEP OUR ROADS SAFE – DON’T DRINK AND DRIVE

 

 
More arrests were made this year than in 2008 (20) and in 2007 (13), but I'm not suggesting conclusions be made from the apparent trend. A number of variables would affect the results and I don't have that data readily available for comparison, such as number of days with additional enforcement by year, number of officer work-hours involved, or other anomalies. I do think it's pertinent that 25 people that could have caused a life-threatening crash were stopped and that no such accidents occurred.
 
As in so many cases, we owe our police officers, fire fighters, and all emergency personnel a debt of gratitude for their constant diligence that benefits each of us.
 

City of Garland Press Release:

Increase Your Environmental IQ in Green 101 Classes

Six of the hottest environmental topics will be covered in the new Green 101 classes being offered by Garland’s Environmental Waste Services, Storm Water and Water Utilities departments and the Texas A&M AgriLife Extension Service.
 
Registration is available through the Garland Parks Department’s PLAY website at play.garlandparks.com and will be open until the classes are full. Each class size is limited to 50 participants and the cost is $10 per person, per class. Anyone attending all six classes will be entered in a drawing for one of three valuable “green” prizes. Information regarding class instructors is on the PLAY website.
 

Green 101 Topics and Schedule:   Water Smarts - Rain harvesting and efficient irrigation Thursday, Feb. 4 - 6:30 – 8:30 p.m. – Bradfield Recreation Center, 1146 Castle   Efficient water use is extremely important in Texas. Learning how to harvest rainwater for landscape irrigation use can save you money, reduce the demand on our municipal water supply, and reduce run-off and contamination of surface water. Combine that with efficient irrigation methods like drip irrigation or rotator sprinkler heads, and you’ll be a watering genius!   Composting 101 Sat., Feb. 13 - 9:30 – 11:30 a.m.– Bradfield Recreation Center   Making dark, rich, crumbly compost doesn't take much time, work, or space. This classcovers the essentials: the composting process, hands-on demonstration of how to build an active compost pile, and how worms can recycle food scraps into rich organic compost. Improve your soil, and your flowers and vegetables will thank you.   Community Gardens Sat., Feb. 20 - 9:30 – 11:30am – Bradfield Recreation Center   Community gardening started in the US as far back as the end of the 19th century, but the latest local food and urban beautification movements have caused a boom in community gardens across urban areas including DFW. Learn the benefits of community gardening and get guidance on how to start and maintain a successful community garden that will provide fresh food, contact with nature and health benefits, as well as an improved sense of community to urban neighborhoods.   Good Bugs/Bad Bugs Thur., Feb. 25 - 6:30 – 8:30 p.m. – Bradfield Recreation Center   Not all insects are bad. In fact, only about 7% of insects are harmful to man, pets and plants. Learn how to identify insect damage and Earth Kind insect controls. Learn plant selection and other landscape practices help control insects. Learn how planting native and adapted plants have less insect problems.   Creating a Rain Garden Thur., March 4 - 6:30 – 8:30p.m. – Bradfield Recreation Center   Does rain water collect in puddles in your yard? Are you concerned about pollutants washing into our stormwater system? Rain gardens are designed to capture and hold rain water run-off until the ground has time to absorb it. In addition to controlling flooding, rain gardens help clean stormwater before it goes back into our water supply and provide a beautiful wildlife habitat.   Do You Know Your Environmental 3Rs? Thur., March 11 - 6:30 – 8:30 p.m. – Greenstar Recycling Center, 2610 McCree Rd., Garland   Reduce, Reuse, Recycle—Get an inside look at recycling operations in our community. Learn how you can reduce your impact on natural resources, reuse common items you already have to create beautiful crafts and recycle to save valuable landfill space. Saving the Earth has never been so much fun!

 
To register for the classes, go to play.garlandparks.com. For additional information regarding the City of Garland’s green programs, please visit www.garlandgoesgreen.org.
 

 

5th Annual
Troop 57 Pancake Supper
Wednesday, January 6, 2010
5:30 PM to 7:00 PM
First United Methodist Church
Schreiber Hall
801 W. Ave B
Garland, TX 75040
 
All You Can Eat Pancakes
 
Other items:
Sausage, Coffee, Milk, and Orange Juice
 
Adults $6.00
Child $3.50
Family $15.00

 

Tickets will be available at the door or from any Scout from Troop 57! If you want to get tickets early, drop me an e-mail and I'll have a Scout contact you.
 

 
Pass the syrup, please!
 

Coming soon on the heals of the TMPA Settlement Agreement, the Texas Energy Report announced on Dec 23 that a district court judge had ruled in Garland's favor in a recent case against the Public Utility Commission.
 
At issue, the Legislature had authorized the construction of a multi-billion dollar transmission line from West Texas to carry wind energy to the rest of the state. A number of companies and utilities had lobbied the PUC to be among the constructors. The owners would be able to charge fees for the power transmission, which would eventually be added to the final customers' bill, such as GP&L ratepayers. Even though Garland owns a 47% interest in TMPA, we still have to buy some power on the open market and state and federal agencies require that a portion of that be from renewable resources, like wind power. Local ratepayers will unavoidably have to help pay for the CREZ line. The ideal situation would be to build a portion of the line and use the revenue to offset the new expenses of using the line.
 
The PUC did not award any construction rights to any municipally-owned utilities (such as Garland) or co-operatives. The lack of reasons for that decision did not sit well with the presiding judge.
 

From the Texas Energy Report (public portion):

JUDGE SAYS PROCESS FOR AWARDING CREZ PROJECTS WAS FLAWED By John Moritz   City of Garland says it was unfairly shut out of an opportunity to build transmission lines and towers.   The Public Utility Commission overstepped its statutory authority early this year when it preliminarily awarded $5 billion worth of projects to construct the transmission lines and towers for the Competitive Renewable Energy Zones, a state district judge said in a letter this week.   "The PUC relied upon factors that are not relevant to providing transmission capacity in a manner most beneficial and cost-effective to electric customers and based its decision on underlying findings that lack substantial evidence," Judge Stephen Yelenosky of the 345th District Court in Travis County said in his letter dated Monday to lawyers for the city of Garland and the Texas Attorney General’s Office.   [The rest of the story is available only to subscribers.]

Judge Stephen Yelnosky

 
No order from the court has yet been released but it is expected this month. This is one more effort by the staff at GP&L and the City Attorney's Office to keep electric rates as low as possible in the city.