Let the hive mind of Engadget get that for you.
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In normal English usage, people would use "is considering" since the action is ongoing, so you are correct.
When people are writing about the events that occur in a story, however, they tend to use the simple present tense. ("Romeo considers killing himself; then, he drinks the poison.") That's because the writer is referring to a specific point in time in the story, and you can argue that a journalist is telling a story in the same manner. (He's referring to when the council or whomever brought up and considered the proposal, not the fact that the action happens to still be ongoing.) It's also just been American journalistic style for quite some time.
What brought this whole thing up in the first place is that the article was originally posted with the headline "Dallas is considers shutting off..." which is obviously a typo. You can verify this by looking at the URL. Engadget corrected the headline by removing "is," choosing the simple present instead of the present progressive (aka "present continuous"), which is acceptable in journalism but can sound odd when taken out of context. Either way, people would understand you, and it is unlikely that anybody would call you out on it, though, as has happened here.
Clear as mud, right? The only real rule in a language as promiscuous as English is that "there are no rules."