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HomeMy WebLinkAboutApril 25, 2000 Agenda AGENDA After determining that a quorum is present and convening in an Open Meeting, the City Council will convene in a Closed Meeting of the City of Denton City Council on Tuesday, April 25, 2000 at 5:15 p.m. in the City of Denton Council Work Session Room, Denton City Hall, at 215 East McKiuney, Denton, Texas to consider specific items when these items are listed below under the Closed Meeting section of this agenda. When items for consideration are not listed under the Closed Meeting section of the agenda, the City Council will not conduct a Closed Meeting at 5:15 p.m. and will convene at the time listed below for its regular or special called meeting. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, as set forth below. 1. Closed Meeting: [**Before the Denton City Council may deliberate, vote, or take final action on each of the agenda items posted as a competitive matter in a Closed Meeting under the provisions of TEX. GOV'T. CODE Section 551.086(c), the City Council must first make a good faith determination, by majority vote of its members, that the particular agenda item is a competitive matter that satisfies the requirements of Section 551.086(b)(3). The vote shall be taken during the Closed Meeting and shall be included in the certified agenda of the Closed Meeting. If the City Council fails to determine by a majority vote that the particular agenda item satisfies the requirements of Section 551.086(b)(3), the City Council may not deliberate or take any further action on that agenda item in the Closed Meeting.] mo Deliberations Regarding Real Property --- Under TEX. GOV'T. CODE Section 551.072. (1) (2) Receive information from Staff, discuss, deliberate, consider, and provide Staff with advice and direction pertaining to the location of, the purchase price of, the possible terms of purchase of, negotiating issues, and valuation issues respecting the possible acquisition by the City of Denton Municipal Utilities Department of two (2) tracts of real property; the first being an approximate 3.976 acre tract situated within the proposed North Pointe Addition to the City of Denton; and the second tract being an approximate 0.4221 acre tract situated adjacent to the proposed North Pointe Addition to the City of Denton; both tracts being situated within the T. Toby Survey, Abstract No. 1288, in Denton County, Texas; which acquisition is for a public purpose; and which two (2) tracts of real property are located off of Riney Road, near the High School Elevated Storage Tank. Receive information from Staff, discuss, deliberate, consider, and provide Staff with advice and direction pertaining to the location of, the purchase price of, the possible terms of purchase of, negotiating issues, and valuation issues respecting the possible acquisition by the City of Denton Municipal Utilities Department of a certain approximate 20 acre tract of real property that is part of a 30.191 acre tract of real property, commonly known as Lot 2, Block A, Sandlin Addition, an addition to the City of Denton, Denton County, Texas according to the Conveyance Plat recorded City of Denton City Council Agenda April 25, 2000 Page 2 at Cabinet O, Slide 132 of the Plat Records of Denton County, Texas; and which tract is located North of Joyce Lane; which acquisition is for a public purpose. ANY F1NAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN 1N AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEET1NG IN ACCORDANCE WITH THE PROVISIONS OF SECTION 551.086 OF THE TEXAS GOVERNMENT CODE (THE "PUBLIC POWER EXCEPTION"). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV'T. CODE, SECTIONS 551.001, ET SEQ. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEET1NGS ACT, INCLUDING, WITHOUT LIMITATION SECTIONS 551.071-551.086 OF THE TEXAS OPEN MEETINGS ACT. Special Called Session of the City of Denton City Council on April 25, 2000 at 6:00 p.m. in the Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: Consider adoption of an ordinance authorizing the issuance, sale, and delivery of City of Denton Utility System Revenue Bonds, Series 2000, and approving and authorizing instruments and procedures relating thereto; and providing an effective date. Consider adoption of an ordinance with respect to proposed amendments to bond ordinances and approving and providing an effective date. Following the completion of the Special Called Session, the Council will convene into a Work Session to consider the following: NOTE: A Work Session is used to explore matters of interest to one or more City Council Members or the City Manager for thc purpose of giving staff direction into whether or not such matters should be placed on a future regular or special meeting of the Council for citizen input, City Council deliberation and formal City action. At a Work Session, the City Council generally receives informal and preliminary reports and information from City staff, officials, members of City committees, and the individual or organization proposing council action, if invited by City Council or City Manager to participate in the session. Participation by individuals and members of organizations invited to speak ceases when the Mayor announces the session is being closed to public input. Although Work Sessions are public meetings, and citizens have a legal right to attend, they are not public hearings, so citizens are not allowed to participate in the session unless invited to do so by the Mayor. Any citizen may supply to the City Council, prior to the beginning of the session, a written report regarding the citizen's opinion on the matter being explored. Should the Council direct the matter be placed on a regular meeting agenda, the staff will generally prepare a final report defining the proposed action, which will be made available to all citizens prior to the regular meeting at which citizen input is sought. The purpose of this procedure is to allow citizens attending the regular meeting the opportunity to hear the views of their fellow citizens without having to attend two meetings. City of Denton City Council Agenda April 25, 2000 Page 3 Receive a presentation from Diversified Utility Consultants, Inc. regarding Electric Utility Rate Design. o Receive a report, hold a discussion, and give staff direction regarding a group counseling program for couples to be presented by the Police Department's Family Services Coordinator. o Receive a report, hold a discussion, and give staff direction regarding the Dunkin Sims Stoffels' contract for the joint Lake Ray Roberts Growth Management Plan proposed by the Cities of Denton and Dallas. Receive a report, hold a discussion, and give staff direction regarding the use of Public Improvement Districts. o Receive a report, hold a discussion, and give staff direction regarding the adoption of a new master plan for North Lakes Park. o Receive a report, hold a discussion, and give staff direction regarding the adoption of a Parks, Recreation and Open Space Plan, with a Pedestrian and Bicycle Mobility Element. Receive a report, hold a discussion, and give staff direction regarding possible amendments to the Interim Residential and Nonresidential Ordinances, including consideration of a draft schedule prepared to allow for review and adoption of site design and environmental standards recently released by the Code Committee. Receive a report, hold a discussion, and give staff direction concerning cable television rates for Charter Communications. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the day of ,2000 at o'clock (a.m.) (p.m.) CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM IS ACCESSIBLE 1N ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS 1N ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-g309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. AGENDA DATE: DEPARTMENT: CM/DCM/ACM: AGENDA INFORMATION SHEET April 25, 2OOO Fiscal Operations Kathy DuBose, Assistant City Manager Fiscal and Municipal Services Agenda No.~ Agenda Itcm SUBJECT: Consider approval of an ordinance authorizing the issuance, sale, and delivery of City of Denton Utility System Revenue Bonds, Series 2000, and approving and authorizing instruments and procedures relating thereto; and providing an effective date. BACKGROUND~'. On April 25, 2000, David Medanich of First Southwest Company and Ted Brizzolara III of McCall, Parkhurst and Horton, will present the underwriting company regarding the City of Denton's Utility System Revenue Bonds, Series 2000. The $55,395,000 in bonds will be issued to fund system improvements and upgrades including the acquisition of land related thereto, to make a deposit to the reserve fund, and to pay cost of issuance associated with the sale of bonds. The projects were previously approved in 1999-2004 Capital Improvement Program (CIP). PRIOR ACTION/REVIEW (Council, Boards, Commision): This was reviewed by the Debt Management Committee at the February 8, 2000 meeting. They approved to proceed with the sale of bond funds. FISCAL INFORMATION: The Utility System Revenue Bonds Series 2000 will require an average annual debt service payment of approximately $4,800,000. RespecJfully submi~tted: Diana Ortiz Director of Fiscal Operations DRAFT: 4-20-2000 ORDINANCE NO. 2000- ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF CITY OF DENTON UTILITY SYSTEM REVENUE BONDS, SERIES 2000, AND APPROVING AND AUTHORIZING INSTRUMENTS AND PROCEDURES RELATING THERETO; AND PROVIDING AN EFFECTIVE DATE THE STATE OF TEXAS : COUNTY OF DENTON : CITY OF DENTON : WHEREAS, the City of Denton, Texas, heretofore has duly issued the following revenue bonds: City of Denton Utility System Revenue Bonds, Series 1992, dated March 1, 1992; City of Denton Utility System Revenue Bonds, Series 1993, dated March 1, 1993; City of Denton Utility System Revenue Refunding Bonds, Series 1993-A, dated June 1, 1993; City of Denton Utility System Revenue Refunding Bonds, Taxable Series 1993-B, dated June 1, 1993; City of Denton Utility System Revenue Bonds, Series 1996, dated May 1, 1996; City of Denton Utility System Revenue Refunding Bonds, Series 1996-A, dated May 1, 1996; City of Denton Utility System Revenue Bonds, Series 1998, dated March 15, 1998; City of Denton Utility System Revenue Refunding Bonds, Series 1998A, dated July 15, 1998; and City of Denton Utility System Revenue Refunding Bonds, Series 1998B, dated August 1, 1998; WHEREAS, the City Council of the City of Denton deems it necessary and advisable to authorize, issue, and deliver the additional Utility System Revenue Bonds hereinafter described; and WHEREAS, the Series 2000 Bonds hereinafter authorized and described are to be issued, sold and delivered pursuant to Chapter 1502, Texas Government Code, the City's Home Rule Charter, and other applicable laws, NOW, THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: Section 1. AMOUNT AND PURPOSE OF THE BONDS. (a) The bond or bonds of the City of Denton, Texas (the "Issuer") are hereby authorized to be issued and delivered in the aggregate principal amount ors , for the purpose of providing for improvements and extensions of the City of Denton Utility System, which consist~ ofth~ City'~ Combine~l Waterworks, Sewer, and Electric Lisht and Power ~ystem, and shall be designated "City of Denton Utility System Revenue Bonds, Series 2000A" (the "Series 2000A Bonds"). DRAFT: 4-20-2000 (b) The bond or bonds of the City of Denton, Texas (the "Issuer") are hereby authorized to be issued and delivered in the aggregate principal amount of $ , for thc purpose of providing for improvements and extensions of the City of Denton Utility System, which consists of the City's Combined Waterworks, Sewer, and Electric Light and Power System, and shall be designated "City of Denton Utility System Revenue Bonds, Taxable Series 2000B" (the "Taxable Series 2000B Bonds"). Section 2. DESCRIPTION OF THE BONDS. (a) With respect tothe Series 2000A Bonds, initially there shall be issued, sold, and delivered hereunder a single fully registered bond, without interest coupons, payable in installments of principal (the "Initial Series 2000A Bond"), but the Initial Series 2000A Bond may be assigned and transferred and/or converted into and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, having serial maturities, and in the denomination or denominations of $5,000 or any integral multiple of $5,000, all in the manner hereinafter provided. The term "Series 2000A Bonds" as used in this Ordinance shall mean and include collectively the Initial Series 2000A Bond and all substitute bonds exchanged therefor, as well as all other substitute bonds and replacement bonds issued pursuant hereto, and the term "Series 2000A Bond" shall mean any of the Series 2000A Bonds. (b) With respect to the Taxable Series 2000B Bonds, initially there shall be issued, sold, and delivered hereunder a single fully registered bond, without interest coupons, payable in installments of principal (the "Initial Taxable Series 2000B Bond"), but the Initial Taxable Series 2000B Bond may be assigned and transferred and/or converted into and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, having serial maturities, and in the denomination or denominations of $5,000 or any integral multiple of $5,000, all in the manner hereinafter provided. The term "Taxable Series 2000B Bonds" as used in this Ordinance shall mean and include collectively the Initial Taxable Series 2000B Bond and all substitute bonds exchanged therefor, as well as all other substitute bonds and replacement bonds issued pursuant hereto, and the term "Taxable Series 2000B Bond" shall mean any of the Taxable Series 2000B Bonds. (c) the term "Initial Bonds" as used in this Ordinance shall mean and include collectively the Initial Series 2000A Bond and the Initial Taxable Series 2000B Bond, the term "Bonds" as used in this Ordinance shall mean and include collectively the Initial Bonds and all substitute bonds exchanged therefor, as well as all other substitute bonds and replacement bonds issued pursuant hereto, and the term "Bond" shall mean any of the Bonds. Section 3. INITIAL DATE, DENOMINATION, NUMBER, MATURITIES, INITIAL REGISTERED OWNER, AND CHARACTERISTICS OF THE INITIAL BONDS. (a) (i) The Initial Series 2000A Bond is hereby authorized to be issued, sold, and delivered hereunder as a single fully registered Bond, without interest coupons, dated APRIL 15, 2000, in the denomination and aggregate principal amount of $ , numbered R- 1, payable in annual installments of principal to the initial registered owner thereof, to-wit: or to the registered assignee or assignees of said Bond or any portion or portions thereof(in each case, the "registered owner"), with thc annua~ instalim~nt~ of principal of thc Initial $~ri~s 2000A Bond to bc payable on the dates, respectively, and in the principal amounts, respectively, stated in the FORM OF INITIAL SERIES 2000A BOND set forth in this Ordinance. · DRAFT: 4-20-2000 (ii) The Initial Taxable Series 2000B Bond is hereby authorized to be issued, sold, and delivered hereunder as a single fully registered Bond, without interest coupons, dated APRIL 15, 2000, in the denomination and aggregate principal amount ors , numbered R-l, payable in annual installments of principal to the initial registered owner thereof, to-wit: or to the registered assignee or assignees of said Bond or any portion or portions thereof (in each case, the "registered owner"), with the annual installments of principal of the Initial Taxable Series 2000B Bond to be payable on the dates, respectively, and in the principal amounts, respectively, stated in the FORM OF INITIAL TAXABLE SERIES 2000B BOND set forth in this Ordinance. (b) The Initial Bonds (i) may and shall be prepaid or redeemed prior tO the respective scheduled due dates of installments of principal thereof, (ii) may be assigned and transferred, (iii) may be converted and exchanged for other Bonds, (iv) shall have the characteristics, and (v) shall be signed and sealed, and the principal of and interest on the Initial Bonds shall be payable, all as provided, and in the manner required or indicated, in the FORMS OF INITIAL BONDS set forth in this Ordinance. Section 4. INTEREST. The unpaid principal balance of the Initial Bonds shall bear interest from the date of each Initial Bond to the respective scheduled due dates, or to the respective dates of prepayment or redemption, of the installments of principal of the Initial Bonds, and said interest shall be payable, all in the manner provided and at the rotes and on the dates stated in the FORMS OF INITIAL BONDS set forth in this Ordinance. Section 5. FORMS OF INITIAL BONDS. The form of the Initial Bonds, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be endorsed on the Initial Bonds, shall be substantially as follows: FORM OF INITIAL SERIES 2000A BOND NO. R-1 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON UTILITY SYSTEM REVENUE BOND SERIES 2000A THE CITY OF DENTON, in Denton County, Texas (the "Issuer"), being a political subdivision of thc State of Texas, hereby promises to pay to or to the registered assignee or assignees of this Bond or any portion or portions hereof (in each case, the "registered owner") the aggregate principal amount of ( DOLLARS) DRAFT: 4-20-2000 in annual installments of principal due and payable on December I in each of the years, and in the respective principal amounts, as set forth in the following schedule, and to pay interest, from the date of this Bond hereinafter stated, on the balance of each such installment of principal, respectively, from time to time remaining unpaid, at the rates as follows: PRINCIPAL INTEREST PRINCIPAL INTEREST YEAR . AMOUNT RATE YEAR AMOUNT RATE Interest shall first be due and payable on December 1, 2000, and semiannually on each June 1 and December 1 thereafter while this Bond or any portionhereofis outstanding andunpaid. Said interest shall be calculated on the basis ora 360-day year composed of twelve 30-day months. THE INSTALLMENTS OF PRINCIPAL OF AND THE INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The installments of principal and the interest on this Bond are payable to the registered owner hereof through the services of BANK ONE, TEXAS, N.A., FORT WORTH, TEXAS, which is the "Paying Agent/Registrar" for this Bond. Payment of all principal of and interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof on each principal and/or interest payment date by check, dated as of such date, drawn by the Paying Agent/Registrar on, and payable solely from, funds of the Issuer required by the ordinance authorizing the issuance of this Bond (the "Bond Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such cheek shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, on each such principal and/or interest payment date, to the registered owner hereof, at the address of the registered owner, as it appeared on the 15th day of the month next preceding each suer date (the "Record Date") on the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. The Issuer covenants with the registered owner of this Bond that on or before each principal and/or interest payment date for this Bond it will make available to the Paying Agent/Registrar, from the "Interest and Sinking Fund" maintained pursuant to the Bond Ordinance, the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on this Bond, when due. IN THE EVENT ora nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Issuer. Notice' of the Special Record Date and of the scheduled payment date of the past due interest ("Special Payment Date", which shall be fffieen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of each Holder of a Bond appearing on thc registration books of thc Payin$ Ascnt/R~sistrar at the close of business on the 15th business day next precexllng the date of mailing of such notice. DRAFT: 4-20-2000 IF THE DATE for the payment of the principal of or interest on this Bond shah be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. THIS BOND has been authorized in accordance with the Constitution and laws of the State of Texas in the principal amount of $ , for the purpose of providing for improvements and extensions of the City of Denton Utility System, which consists of the City's Combined Waterworks, Sewer, and Electric Light and Power System. ON DECEMBER 1, 2010, or on any date whatsoever thereafter, the unpaid installments of principal of this Bond may be prepaid or redeemed prior to their scheduled due dates, at the option of the Issuer, with funds derived from any available source, as a whole, or in part, and, if in part, the particular portion of this Bond to be prepaid or redeemed shall be selected and designated by the Issuer (provided that a portion of this Bond may be redeemed only in an integral multiple of $5,000), at the prepayment or redemption price of the par or principal amount thereof, plus accrued interest to the date fixed for prepayment or redemption. AT LEAST 30 days prior to the date fixed for any such prepayment or redemption a written notice of such prepayment or redemption shall be mailed by the Paying Agent/Registrar to the registered owner hereof. By the date fixed for any such prepayment or redemption due provision shall be made by the Issuer with the Paying Agent/Registrar for the payment of the required prepayment or redemption price for this Bond or the portion hereof which is to be so prepaid or redeemed, plus accrued interest thereon to the date fixed for prepayment or redemption. If such written notice of prepayment or redemption is given, and if due provision for such payment is made, all as provided above, this Bond, or the portion thereof which is to be so prepaid or redeemed, thereby automatically shall be treated as prepaid or redeemed prior to its scheduled due date, and shall not bear interest after the date fixed for its prepayment or redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the prepayment or redemption price plus accrued interest to the date fixed for prepayment or redemption from the Paying Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall record in the Registration Books all such prepayments or redemptions of principal of this Bond or any portion hereof. THIS BOND, to the extent of the unpaid or unredeemed principal balance hereof, or any unpaid and unredeemed portion hereof in any integral multiple of $5,000, may be assigned by the initial registered owner hereof and shall be transferred only in the Registration Books of the Issuer kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, upon the terms and conditions set forth in the Bond Ordinance. Among other requirements for such transfer, this Bond must be presented and surrendered to the Paying Agent/Registrar for cancellation, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment by the initial registered owner of this Bond, or any portion or portions bereof in any integral multiple of $5,000, to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be transferred and registered. Any instrument or instruments of assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of this Bond or any such portion or portions hereof by the initial registered owner hereof, A new bond or bond~ payabl~ to .~u~h a~.~i~n~e or a~i~nees (which then will be the new registered owner or owners of such new Bond or Bonds) or to the initial registered owner as to any port/on of this Bond which is not being assigned and transferred by the/nifial registered owner, shall be delivered by the Paying Agent/Registrar in conversion of and exchange for th/s Bond or any portion or portions hereof, but DRAFT: 4-20-2000 solely in the form and manner as provided in the next paragraph hereof for the conversion and exchange of this Bond or any portion hereof. The registered owner of this Bond shall be deemed and treated by the Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of liability upon this Bond to the extent of such payment, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary. AS PROVIDED above and in the Bond Ordinance, this Bond, to the extent of the unpaid or unredeemed principal balance hereof, may be converted into and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, payable to the assignee or assignees duly designated in writing by the initial registered owner hereof, or to the initial registered owner as to any portion of this Bond which is not being assigned and transferred by the initial registered owner, in any denomination or denominations in any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute bond issued in exchange for any portion of this Bond shall have a single stated principal maturity date), upon surrender of this Bond to the Paying Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Bond Ordinance. If this Bond or any portion hereof is assigned and transferred or converted each bond issued in exchange for any portion hereof shall have a single stated principal maturity date corresponding to the due date of the installment of principal of this Bond or portion hereof for which the substitute bond is being exchanged, and shall bear interest at the rate applicable to and borne by such installment of principal or portion thereof. Such bonds, respectively, shall be subject to redemption prior to maturity on the same dates and for the same prices as the corresponding installment of principal of this Bond or portion hereof for which they are being exchanged. No such bond shall be payable in installments, but shall have only one stated principal maturity date. AS PROVIDED IN THE BOND ORDINANCE, THIS BOND IN ITS PRESENT FORM MAY BE ASSIGNED AND TRANSFERRED OR CONVERTED ONCE ONLY, and to one or more assignees, but the bonds issued and delivered in exchange for this Bond or any portion hereof may be assigned and transferred, and converted, subsequently, as provided in the Bond Ordinance. The Issuer shall pay the Paying AgentfRegistrar's staudard or customary fees and charges for transferring, converting, and exchanging this Bond or any portion thereof, but the one requesting such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make any such assignment, conversion, or exchange (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or portion thereof called for prepayment or redemption prior to maturity, within 45 days prior to its prepayment or redemption date. IN THE EVENT any Paying Agent/Registrar for this Bond is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Bond Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, and promptly will eanse written notice thereof to be mailed to the registered owner of this Bond. IT IS HEREBY certified, recited, and covenanted that this Bond has been duly and validly authorized, issued, sold, and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; that this Bond is a special obligation of the Issuer, secured by and payable, together with other bonds, from a first lien on and pledge of the "Pledged Revenues", which include initially the "Net Revenues of the System" as such terms are defined in the Bond Ordinance, with the System consisting of the City's entire combined waterworks, sewer, and elect,-ic lisht and power system. DRAFT: 4-20-2000 THE ISSUER has reserved the right, subject to the restrictions stated in the Bond Ordinance, to issue Additional Bonds payable from and secured by a first lien on and pledge of the "Pledged Revenues" on a parity with this Bond. THE ISSUER also has reserved the right, subject to the restrictions stated in the Bond Ordinance, to amend the Bond Ordinance with the approval of the holders or owners of'fifty-one percent in principal amoum o£ all outstanding bonds which are secured by and payable from a first lien on and pledge of the Pledged Revenues. THE REGISTERED OWNER hereof shall never have the right to demand payment of this Bond or the interest hereon out of any funds raised or to be raised by taxation or from any source whatsoever other than specified in the Bond Ordinance. BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of the terms and provisions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of this Bond and the Bond Ordinance constitute a contract between the registered owner hereof and the Issuer. IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual or facsimile signature of the Mayor of the Issuer and countersigned and attested with the manual signature or facsimile of the City Secretary of the Issuer, has caused the official seal of the Issuer to be duly impressed on this Bond, and has caused this Bond to be dated April 15, 2000. ATTEST: CITY OF DENTON, TEXAS By: By: Jennifer Walters City Secretary, City of Denton, Texas (CITY SEAL) Jack Miller Mayor, City of Denton, Texas (BOND INSURANCE LEGEND, IF ANY) DRAFT: 4-20-2000 FORM OF REGISTRATION CERTIFICATE OF THE COMPTROLLER OF PUBLIC ACCOUNTS: COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this Bond has been examined, certified as to validity, and approved by the Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller of Public Accounts of the State of Texas. Witness my signature and seal this (COMPTROLLER'S SEAL) Comptroller of Public Accounts of the State of Texas NO. R-1 FORM OF INITIAL TAXABLE SERIES 2000B BOND UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON UTILITY SYSTEM REVENUE BOND TAXABLE SERIES 2000B THE CITY OF DENTON, in Denton County, Texas (the "Issuer"), being a pohtical subdivision of the State of Texas, hereby promises to pay to or to the registered assignee or assignees of this Bond or any portion or portions hereof (in each case, the "registered owner") the aggregate principal amount of $ ( DOLLARS) in annual installments of principal due and payable on December 1 in each of the years, and in the respective principal amounts, as set forth in the following schedule, and to pay interest, from the date of this Bond hereinafter stated, on the balance of each such installment of principal, respectively, from time to time remaining unpaid, at the rates as follows: DRAFT: 4-20-2000 PRINCIP~ INTEREST PRINCIPAL INTEREST YEAR AMOUNT RATE YEAR AMOUNT RATE Interest shall first be due and payable on December 1, 2000, and semiannually on each June I and December I thereafter while this Bond or.any portion hereof is outstanding and unpaid. Said interest shall be calculated on the basis ora 360-day year composed of twelve 30-day months. THE INSTALLMENTS OF PRINCIPAL OF AND THE INTEREST ON this Bond are payable in lawful money of the United States of.america, without exchange or collection charges. The installments of principal and thc interest on this Bond are payable to the registered owner hereof through the services of BANK · ONE, TEXAS, N.A., FORT WORTH, TEXAS, which is the "Paying Agent/Registrar" for this Bond. Payment of all principal of and interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof on each principal and/or interest payment date by check, dated as of such date, drawn by the Paying Agent/Registrar on, and payable solely from, funds of the Issuer required by the ordinance authorizing the issuance of this Bond (the "Bond Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such check shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, on each such principal and/or interest payment date, to the registered owner hereof, at the address of the registered owner, as it appeared on the 15th day of the month next preceding each such date (the "Record Date") on the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. The Issuer covenants with the registered owner of this Bond that on or before each principal and/or interest payment date for this Bond it will make available to the Paying Agent/Registrar, from the "Interest and Sinking Fund" maintained pursuant to the Bond Ordinance, the mounts required to provide for the payment, in immediately available funds, of all principal of and interest on this Bond, when due. IN THE EVENT of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Issuer. Notice of the Special Record Date and of the scheduled payment date of the past due interest ("Special Payment Date", which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of each Holder ora Bond appearing on the registration books of the Paying Agent/Registrar at the close of business on the 15th business day next preceding the date of mailing of such notice. IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the Paying Agent/Registrar is located are authorized by law or executive order to dose, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was duc. DRAFT: 4-20-2000 THIS BOND has been authorized in accordance with the Constitution and laws of the State of Texas in the principal amount of $ , for the purpose of providing for improvements and extensions of the City of Dentun Utility System, which consists of the City's Combined Waterworks, Sewer, and Electric Light and Power System. ON DECEMBER 1, 2010, or on any date whatsoever therea~er, the unpaid installments of principal of this Bond may be prepaid or redeemed prior to their scheduled due dates, at the option of the Issuer, with funds derived from any available source, as a whole, or in part, and, if in part, the particular portion of this Bond to be prepaid or redeemed shall be selected and designated by the Issuer (provided that a portion of this Bond may be redeemed only in an integral multiple of $5,000), at the prepayment or redemption price of the par or principal amount thereof, plus accrued interest to the date fixed for prepayment or redemption. AT LEAST 30 days prior to the date fixed for any such prepayment or redemption a written notice of such prepayment or redemption shall be mailed by the Paying Agent/Registrar to the registered owner hereof. By the date fixed for any such prepayment or redemption due provision shall be made by the Issuer with the Paying Agent/Registrar for the payment of the required prepayment or redemption price for this Bond or the · portion hereof which is to be so prepaid or redeemed, plus accrued interest thereon to the date fixed for prepayment or redemption. If such written notice of prepayment or redemption is given, and if due provision for such payment is made, all as provided above, this Bond, or the portion thereof which is to be so prepaid or redeemed, thereby automatically shall be treated as prepaid or redeemed prior to its scheduled due date, and shall not bear interest after the date fixed for its prepayment or redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the prepayment or redemption price plus accrued interest to the date fixed for prepayment or redemption from the Paying Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall record in the Registration Books all such prepayments or redemptions of principal of this Bond or any portion hereof. THIS BOND, to the extent of the unpaid or unredeemed principal balance hereof, or any unpaid and unredeemed portion hereof in any integral multiple of $5,000, may be assigned by the initial registered owner hereof and shall be transferred only in the Registration Books of the Issuer kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, upon the terms and conditions set forth in the Bond Ordinance. Among other requirements for such transfer, this Bond must be presented and surrendered to the Paying Agent/Registrar for cancellation, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment by the initial registered owner of this Bond, or any portion or portions hereof in any integral multiple of $5,000, to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be transferred and registered. Any instrument or instruments of assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of this Bond or any such portion or portions hereof by the initial registered owner hereof. A new bond or bonds payable to suer assignee or assignees (which then will be the new registered owner or owners of such new Bond or Bonds) or to the initial registered owner as to any portion of this Bond which is not being assigned and transferred by the initial registered owner, shall be delivered by the Paying Agent/Registrar in conversion of and exchange for this Bond or any portion or portions hereof, but solely in the form and manner as provided in the next paragraph hereof for the conversion and exchange of this Bond or any portion hereof. The registered owner of this Bond shall be deemed and treated by the Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of liability upon this Bond to the extent of such payment, and the Issuer mad the Paying Agent/Registrar shall not be affected by any notice to the contrary. l0 DRAFT: 4-20-2000 AS PROVIDED above and in the Bond Ordinance, this Bond, to the extent of the unpaid or unredeemed principal balance hereof, may be converted into and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, payable to the assignee or assignees duly designated in writing by the initial registered owner hereof, or to the initial registered owner as to any portion of this Bond which is not being assigned and transferred by the initial registered owner, in any denomination or denominations in any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute bond issued in exchange for any portion of this Bond shall have a single stated principal maturity date), upon surrender of this Bond to the Paying Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Bond Ordinance. If this Bond or any portion hereof is assigned and transferred or converted each bond issued in exchange for any portion hereof shall have a single stated principal maturity date corresponding to the due date of the installment of principal of this Bond or portion hereof for which the substitute bond is being exchanged, and shall bear interest at the rate applicable to and borne by such installment of principal or portion thereof. Such bonds, respectively, shall be subject to redemption prior to maturity on the same dates and for the same prices as the corresponding installment of principal of this Bond or portion hereof for which they are being exchanged. No such bond shall be payable in installments, but shall have only one stated principal maturity date. AS PROVIDED IN THE BOND ORDINANCE, THIS BOND .IN ITS PRESENT FORM MAY BE AS SIGNED AND TRANSFERRED OR CONVERTED ONCE ONLY, and to one or more assignees, but the bonds issued and delivered in exchange for this Bond or any portion hereof may be assigned and transferred, and converted, subsequently, as provided in the Bond Ordinance. The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for transferring, converting, and exchanging this Bond or any portion thereof, but the one requesting such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make any such assignment, conversion, or exchange (i) during the period commencing with the dose of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or portion thereof called for prepayment or redemption prior to maturity, within 45 days prior to its prepayment or redemption date. IN THE EVENT any Paying Agent/Registrar for this Bond is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Bond Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, and promptly will cause written notice thereof to be mailed to the registered owner of this Bond. IT IS HEREBY certified, recited, and covenanted that this Bond has been duly and validly authorized, issued, sold, and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; that this Bond is a special obligation of the Issuer, secured by and payable, together with other bonds, from a first lien on and pledge of the "Pledged Revenues", which include initially the "Net Revenues of the System" as such terms are defined in the Bond Ordinance, with the System consisting of the City's entire combined waterworks, sewer, and electric light and power system. THE ISSUER has reserved the right, subject to the restrictions stated in the Bond Ordinance, to issue Additional Bonds payable fi'om and secured by a first lien on and pledge of the "Pledged Revenues" on a parity with this Bond. THE ISSUER also has reserved the fight, subject to the restrictions stated in the Bond Ordinance, to amend the Bond Ordinance with the approval of the holders or owners of fifty-one percent in principal amount of all outstanding bonds which are secured by and payable from a first lien on and pledge of the Pledged Revenues. 11 DR~FT: 4-20-2000 THE REGISTERED OWNER hereof shall never have the right to demand payment of this Bond or the interest hereon out of any funds raised or to be raised by taxation or from any source whatsoever other than specified in the Bond Ordinance. BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of the terms and provisions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of this Bond and the Bond Ordinance constitute a contract between the registered owner hereof and the Issuer. IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual or facsimile signature of the Mayor of the Issuer and countersigned and attested with the manual signature or facsimile of the City Secretary of the Issuer, has caused the official seal of the Issuer to be duly impressed on this Bond, and has caused this Bond to be dated April 15, 2000. ATTEST: CITY OF DENTON, TEXAS By: Jennifer Walters City Secretary, City of Denton, Texas (CITY SEAL) By: Jack Miller Mayor, City of Denton, Texas (BOND INSURANCE LEGEND, IF ANY) FORM OF REGISTRATION CERTIFICATE OF THE COMPTROLLER OF PUBLIC ACCOUNTS: COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this Bond has been examined, oertiiied as to validity, and approved by the Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller of Public Accounts of the State of Texas. Wimess my signature and seal this (COMPTROLLER'S SEAL) Comptroller of Public Accounts of the State of Texas 12 DRAFT: 4-20-2000 Section 6. ADDITIONAL CHARACTERISTICS OF THE BONDS. Registration and Transfer. (a) The Issuer shall keep or cause to be kept at the Fort Worth, Texas, corporate trust office of BANK ONE, TEXAS, N.A. (the "Paying Agent/Registrar") books or records of the registration and transfer of the Bonds (the "Registration Books"), and the Issuer hereby appoints the Paying Agent/Registrar as its registrar and transfer agent to keep such books or records and make such transfers and registrations under such reasonable regulations as the Issuer and Paying Agent/Registrar may prescribe; and the Paying Agent/Registrar shall make such transfers and registrations as herein provided. The Paying Agent/Registrar shall obtain and record in the Registration Books the address of the registered owner of each Bond to which payments with respect to the Bonds shall be mailed, as herein provided; but it shall be the duty of each registered owner to notify the Paying Agent/Registrar in writing of the address to which payments shall be mailed, and such interest payments shall not be mailed unless such notice has been given. The Issuer shall have the fight to inspect the Registration Books during regular business hours of the Paying Agent/Registrar, but otherwise the Paying AgentJRegistrar shall keep the Registration Books confidential and, unless otherwise required by law, shall not permit their inspection by any other entity. Registration of each Bond may be transferred in the Registration Books only upon presentation and surrender of such Bond to the Paying Agent/Regi~u~ for transfer of registration and cancellation, together with proper written instruments of assignment, in form and with guarantee of signatures · satisfactory to the Paying Agent/Registrar, evidencing (i) the assj~rnent of the Bond, or any portion thereof in any integral multiple of $5,000, to the assignee or assignees thereof, and (ii) the right of such assignee or assignees to have the Bond or any such portion thereof registered in the name of such assignee or assignees. Upon the assignment and transfer of any Bond or any portion thereof, a new substitute Bond or Bonds of the same Series shall be issued in conversion and exchange therefor in the manner herein provided. The Initial Bonds, to the extent of the unpaid or unredeemed principal balance thereof, may be assigned and transferred by the initial registered owner thereof once only, and to one or more assignees designated in writing by the imtial registered owner thereof. All Bonds issued and delivered in conversion of and exchange for the Initial Bond shall be in any denomination or denominations of any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute Bond shall have a single stated principal maturity date), shall be in the form prescribed for such Series in the FORMS OF SUBSTITUTE BONDS set forth in this Ordinance, and shall have the characteristics, and may be assigned, transferred, and converted as hereinafter provided. If the Initial Bond or any portion thereof is assigned and transferred or converted the Initial Bond must be surrendered to the Paying Agent/Registrar for cancellation, and each Bond issued in exchange for any portion of the Initial Bond shall have a single stated principal maturity date, and shall not be payable in install- ments; and each such Bond shall have a principal maturity date corresponding to the due date of the insta!lnaeut of principal or portion thereof for which the substitute Bond is being exchanged; each such Bond shall bear interest at the single rate applicable to and borne by such installment of principal or portion thereof for which it is being exchanged and each such Bond shall be of the same Series. If only a portion of the Initial Bond is assigned and transferred, there shall be delivered to and registered in the name of the initial registered owner substitute Bonds of the same Series in exchange for the unassigned balance of the Initial Bond in the same manner as if the initial registered owner were the assignee thereof. If any Bond or portion thereof other than the Initial Bond is assigned and transferred or converted each Bond issued in exehangn therefor shall be of the same Series, have the same principal maturity date and bear interest at the same rate as the Bond for which it is exchanged. A form of assignment shall be printed or endorsed on each Bond, excepting the Initial Bonck2__, which shall be executed by the registered owner or its duly authorized attorney or representative to evidence an assignment thereof. Upon surrender of any Bonds or any portion or portions thereof for. transfer of registration, an authorized representative of the Paying Agent/Registrar shall make such transfer in the Registration Books, and shall driver a new fully registered substitute Bond or Bonds of the same Series, havin$ the characteristics herein described, payable to such assignee or assignees (which then will be the registered owner or owners of such new Bond or Bonds), or to the previous registered owner in case only a portion of a Bond is being assigned and transferred, all in conversion of and exchange for said assigned Bond or Bonds or 13 DRAFT: 4-20-2000 any portion or portions thereof, in the same form and manner, and with the same effe.~ as provided in Section 6(d), below, for the conversion and exchange of Bonds by any registered owner of a Bond. The Issuer shall pay the Paying AgentYl~gistrar's standard or customary fees and charges for making such transfer and delivery ora substitute Bond or Bonds, but the one requesting such trnnsfer shall pay any taxes or other governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make transfers of registration of any Bond or any portion thereof (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. (b) Ownership of Bonds. The entity in whose name any Bond shall be registered in the Registration Books at any time shall be deemed and treated as the absolute owner thereof for all purposes of this Ordinance, whether or not such Bond shall be overdue, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary; and payment of, or on account of, the principal of, premium, if any, and interest on any such Bond shall be made only to such registered owner. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. (c) Payment of Bonds and Interest. The Issuer hereby further appoints the Paying Agent/Registrar to act as the paying agent for paying the principal of and interest on the Bonds, and to act as its agent to convert and exchange or replace Bonds, all as provided in this Ordinance. The Paying Agent/RegiStrar shall keep proper records of all payments made by the Issuer and the Paying Agent/Registrar with respect to the Bonds, and of all conversions and exchanges of Bonds, and all replacements of Bonds, as provided in this Ordinance. However, in the event ora nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, ff and when funds for the payment of such interest have been received from the Issuer. Notice of the Special Record Date and of the scheduled payment date of the past due interest ("Special Payment Date", which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of each Holder of a Bond appearing on the registration books of the Paying Agent/Registrar at the dose of business on the 15th business day next preceding the date of rnailing of such notice. (d) Conversion and Exchanoe or Replacement; Authentication. Each Bond issued and delivered pursuant to this Ordinance, to the extent of the unpaid or up_redeemed principal balance or principal amount thereof, may, upon surrender of such Bond at the principal corporate trust office of the Paying Agent/Registrar, together with a written request therefor duly executed by the registered owner or the assignee or assignees thereof, or its or their duly authorized attorneys or representatives, with guarantee of signatures satisfactory to the Paying Agent/Registrar, may, at the option of the registered owner or such assignee or assignees, as appropriate, be converted into and exchanged for fully registered bonds of the same Series, without interest coupons, in the form prescribed for such Series in the FORMS OF SUBSTITUTE BONDS set forth in this Ordinance, in the denomination of $5,000, or any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute Bond shall have a single stated maturity date), as requested in writing by such registered owner or such assignee or assignees, in an aggregate principal amount equal to the unpaid or unredeemed principal balance or principal amount of any Bond or Bonds so surrendered, and payable to the appropriate registered owner, assignee, or assignees, as the ease may be. If the Initial Bond is assigned and transferred or converted each substitute Bond issued in exchange for any portion of the Initial Bond be of the same Series, shall have a single stated principal maturity date, and shall not be payable in installments; each such Bond shall have a principal maturity date corresponding to the due date of the installment of principal or portion thereof for which the substitute Bond is being exchanged; and each such Bond shall bear interest at the 14 DRAFT: 4-20-2000 single rate applicable to and borne by such installment of principal or portion thereof for which it is being exchanged and each such Bond shall bc of the same Series. Ifa portion of any Bond (other than thc Initial Bond) shall be redeemed prior to its scheduled maturity as provided herein, a substitute Bond or Bonds be of the same Series having the same maturity date, bearing interest at the same rate, in the denomination or denominations of any integral multiple of $5,000 at the request of the registered owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon surrender thereof for cancellation. If any Bond or portion thereof (other than the Irfitial Bond) is assigned and transferred or converted, each Bond issued in exchange therefor shall be of the same Series, have the same principal maturity date and bear interest at the same rate as the Bond for which it is being exchanged. Each substitute Bond shall bear a letter and/or number to distinguish it from each other Bond. The Paying Agent/Registrar shall convert and exchange or replace Bonds as provided herein, and each fully registered bond delivered in conversion of and exchange for or replacement of any Bond or portion thereof as permitted or required by any provision of this Ordinance shall constitute one of the Bonds for all purposes of this Ordinance, and may again be converted and exchanged or replaced. It is specifically provided that any Bond authenticated in conversion of and exchange for or replacement of another Bond on or prior to the first scheduled Record Date for the Initial Bond shall bear interest from the date of the Initial Bond, but each substitute Bond so authenticated after such first scheduled Record Date shall bear interest from the interest payment date next preceding the date on which such substitute Bond was so authenticated, unless such Bond is authenticated after any Record Date but on or before the next following interest payment date, in which case it shall bear interest from such next following interest payment date; provided, however, that if at the time of delivery of any substitute Bond the interest on the Bond for which it is being exchanged is due but has not been paid, then such Bond shall bear interest from the date to which such interest has been paid in full. THE INITIAL BONDS issued and delivered pursuant to this Ordinance is not required to be, and shall not be, authenticated by the Paying Agent/Registrar, but on each substitute Bond issued in conversion of and exchange for or replacement of any Bond or Bonds issued under this Ordinance there shall be printed a certificate, in the form substantially as follows: "PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been issued under the provisions of the Bond Ordinance described in this Bond; and that this Bond has been issued in conversion of and exchange for or replacement of a bond, bonds, or a portion ora bond or bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. BANK ONE, TEXAS, N.A. Paying AgentiRegislxar Dated By Authorized Representative" An authorized representative of the Paying Agent/Registrar shall, before the delivery of any such Bond, date and manually sign the above Certificate, and no such Bond shall be deemed to be issued or outstanding unless such Certificate is so executed. The Paying Agent/Registrar promptly shall cancel all Bonds surrendered for conversion and exchange or replacement. No additional ordinances, orders, or.resolutions need be passed or adopted by the governing body of the Issuer or any other body or person so as to accomplish the foregoing conversion and ~nchang~ or r~pla~m~nt of any Bond or portion there, of, and the Payin8 As~nt/Resistrar shall provide for the printing, execution, and delivery of the substitute Bonds in the manner prescribed herein. Pursuant to Chapter 1201, Texas Government Code, the duty of conversion and exchange or replacement of Bonds as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution of the above 15 DRAFT: 4-20-2000 Paying Agent/Registrar's Authentication Certificate, the converted and exchanged or replaced Bond shall be valid, incontestable, and enforceable in the same manner and with the same effect as the Initial Bond which originally was issued pursuant to this Ordinance, approved by the Attorney General, and registered by the Comptroller of Public Accounts. The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for transferring, converting, and exchanging any Bond or any portion thereof, but the one requesting any such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto as a condition precedent to the exercise of such privilege of conversion and exchange. The Paying Agent/Registrar shall not be required to make any such conversion and exchange or replacement of Bonds or any portion thereof (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. (e) In General. All Bonds issued in conversion and exchange or replacement of any other Bond or portion thereof, (i) shall be issued in fully registered form, without interest coupons, with the principal of and interest on such Bonds to be payable only to the registered owners thereof, (ii) may and shall be redeemed prior · to their scheduled maturities, (iii) may be transferred and assigned, (iv) may be converted and exchanged for other Bonds of the same Series, (v) shall have the characteristics, (vi) shall be signed and sealed, and (vii) the principal of and interest on the Bonds shall be payable, all as provided, and in the manner required or indicated, in the FORMS OF SUBSTITUTE BONDS set forth in this Ordinance. (f) Payment of Fees and Charges. The Issuer hereby covenants with the registered owners of the Bonds that it will (i) pay the standard or customary fees and charges of the Paying Agent/Registrar for its services with respect to the payment of the principal of and interest on the Bonds, when due, and (ii) pay the fees and charges of the Paying Agent/Registrar for services with respect to the transfer of registration of Bonds, and with respect to the conversion and exchange of Bonds solely to the extent above provided in this Ordinance. (g) Substitute Paving Agent/Registrar. The Issuer covenants with the registered owners ofthe Bonds that at all times while the Bonds are'outstanding the Issuer will provide a competent and legally qualified bank, trust company, financial institution, or other agency to act as and perform the services of Paying Agent/Registrar for the Bonds under this Ordinance, and that the Paying Agent/Regi~Uar will be one entity. The Issuer reserves the right to, and may, at its option, change the Paying Agent/Registrar upon not less than 120 days written notice to the Paying Agent/Registrar, to be effective not later than 60 days prior to the next principal or interest payment date after such notice. In the event that the entity at any time acting as Paying Agent/Registrar (or its successor by merger, acquisition, or other method) should resign or otherwise cease to act as such, the Issuer covenants that it will promptly appoint a competent and legally qualified bank, trust company, financial institution, or other agency to act as Paying Agent/Registrar under this Ordinance. Upon any change in the Paying Agent/Registrar, the previous Paying Agent/Registrar shall promptly transfer and deliver the Registration Books (or a copy thereof), along with all other pertinent books and records relating to the Bonds, to the new Paying Agent/Registrar designated and appointed by the Issuer. Upon any change in the Paying Agent/Registrar, the Issuer promptly will cause a written notice thereof to be sent by the new Paying Agent/Registrar to each registered owner of the Bonds, by United States mail, first-class postage prepaich which notice also shall give the address of the new Paying Agent/Registrar. By accepting the position and performing as such, each Paying Agent/Registrar shall be deemed to have agreed to the provisions of this Ordinate, and a ~rtific, d copy of thi.~ Ordinanc~ ~hall be d~liv~r~d to c~h P~ying Agent/Registrar. Section 7. FORMS OF SUBSTITUTE BONDS. The form of all Bonds issued in conversion and exchange or replacement of any other Bond or portion thereof, including the form of Paying Agent/Regis/~ar's 16 DRAFT: 4-20-2000 Certificate to be printed on each of such Bonds, and the Form of Assignment to be printed on each of the Bonds, shall be, respectively, substantially as follows, with such appropriate variations, omissions, or insertions as are permitted or required by this Ordinance. FORM OF SUBSTITUTE SERIES 2000A BOND NO. UNITED STATES OF AMERICA PRINCIPAL AMOUNT STATE OF TEXAS $ COUNTY OF DENTON CITY OF DENTON UTILITY SYSTEM REVENUE BOND SERIES 2000A INTEREST MATURITY ORIGINAL DATE RATE DATE OF ISSUE CUSIP NO. % ,2000 ON THE MATURITY DATE specified above the CITY OF DENTON, in Denton County, Texas (the "Issuer"), being a political subdivision of the State of Texas, hereby promises to pay to , or to the registered assignee hereof (either being hereinafter called the "registered owner") the principal amount of and to pay interest thereon from April 15, 2000, to the maturity date specified above, or the date of redemption prior to maturity, at the interest rate per annum specified above; with interest being first due and payable on December 1, 2000, and semiannually on each June 1 and December 1 thereafter, except that if the date of authentication oft.his Bond is later than the first Record Date (hereinat~r defined), such principal amount shall bear interest from the interest payment date next preceding the date of authentication, unless such date of authentication is after any Record Date 0aereinaffer defined) but on or before the next following interest payment date, in which case such principal amount shall bear interest from such next following interest payment date. Said interest shall be calculated on the basis of a 360-day year composed of twelve 30-day months. THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The principal of this Bond shall be paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or upon the date fixed for its redemption prior to maturity, at the Fort Worth, Texas, corporate trust office of BANK ONE, TEXAS, N.A., which is the "Paying Agent/Registrar" for this Bond. The payment of interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof on each interest payment date by check, dated as of such interest payment date, drawn by the Paying Agent/Registrar on, and payable solely from, funds of the Issuer required by the ordinance authorizing the issuance of the Bonds (the "Bond Ordinance") to be on deposit with the Paying Agent/Registrar for suer purpose as hereina~er provided; and such check shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, on each such interest payment date, to the registered owner hereof, at the address of the registered owner, as it appeared at the dose of business on the 15th day of the month next preceding each such date (the "Record Date") on the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. However, the payment of such interest may be made 17 DRAFT: 4-20-2000 by any other method acceptable to the Paying Agent/Registrar and requested by, and at the risk and expense of, thc registered owner hereof. Any accrued interest due upon the redemption of this Bond prior to maturity as provided herein shall be paid to thc registered owner at the principal corporate trust office of the Paying Agent/Registrar upon presentation and surrender of this Bond for redemption and payment at thc principal corporate trust office of thc Paying Agent/Registrar. The Issuer covenants with thc registered owner of this Bond that on or before each principal payment date, interest payment date, and accrued interest payment date for this Bond it will make available to the Paying Agent/Registrar, from the "Interest and Sinking Fund" created by thc Bond Ordinancc,.thc amounts required to provide for the payment, in immediately available funds, of all principal of and interest on thc Bonds, when duc. IN THE EVENT of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying AgcntfRcgistrar, if and when funds for the payment of such interest have been.received from the Issuer. Notice of the Special Record Date and of the scheduled payment date of the past due interest ("Special Payment Date", which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of each Holder ora Bond appearing on the registration books of the Paying Agent/Registrar at the close of business on the 15th business day nex~ preceding the date of mailing of such notice. IF THE DATE for thc payment of thc principal of or interest on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in thc City where thc Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. THIS BOND is one ora series of Bonds initially dated April 15, 2000, authorized in accordance with the Constitution and laws of the State of Texas in the principal amount of $ , for the purpose of providing for improvements and extensions of the City of Denton Utility System, which consists of the City's Combined Waterworks, Sewer, and Electric Light and Power System. ON DECEMBER 1, 2010, or on any date whatsoever thereafter, the Bonds of this Series may be redeemed prior to their scheduled maturities, at the option of the Issuer, with funds derived from any available and lawful source, as a whole, or in part, and, if in part, the particular Bonds, or portions thereof, to be redeemed shall be selected and designated by the Issuer (provided that a portion of a Bond may be redeemed only in an integral multiple of $5,000), at the redemption price of tho par or principal amount thereof, plus accrued interest to the date fixed for redemption. AT LEAST 30 days prior to the date fixed for any redemption of Bonds or portions thereof prior to maturity a written notice of such redemption shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, at least 30 days prior to the date fixed for any such redemption, to the registered owner of each Bond to be redeemed at its address as it appeared on the 45th day prior to such redemption date and to major securities depositories, national bond rating agencies and bond information services; provided, however, that the failure of the registered owner to receive such notice, or any defect therein or in the sending or mailing thereof, shall not affect thc validity or effectiveness of the proceedings for the redemption of any Bond. By thc date fixed for any such redemption duc provision shall be made with the Paying Agent/Registrar for thc payment of thc required redemption price for thc Bonds or portions thereof that are to be so redeemed. If such written notice of redemption is sent and if duc provision for such payment is made, all as provided 18 DRAFT: 4-20-2000 above, the Bonds or portions thereof that are to be so redeemed thereby automatically shall be treated as redeemed prior to their scheduled maturities, and they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being outstanding except for the right of the registered owner to receive the redemption price from the Paying Agent/Registrar out of the funds provided for such payment. If a portion of any Bond shall be redeemed, a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the registered owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the Issuer, all as provided in the Bond Ordinance. THIS BOND OR ANY PORTION OR PORTIONS HEREOF IN ANY INTEGRAL MULTIPLE OF $5,000 may be assigned and shall be transferred only in the Registration Books of the Issuer kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, upon the terms and conditions set forth in the Bond Ordinance. Among other requirements for such assignment and transfer, this Bond must be presented and surrendered to the Paying Agent/Registrar, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment of this Bond or any portion or portions hereof in any integral multiple of $5,000 to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be transferred and registered. The form of Assignment printed or endorsed on this Bond shall be executed by the registered owner or its duly authorized attorney or representative, to evidence the assi,,~)nment hereof. A new Bond or Bonds payable to such assignee or assignees (which then will be the new registered owner or owners of such new Bond or Bonds), or to the previous registered owner in the case of the assignment and transfer of only a portion of this Bond, may be delivered by the Paying Agent/Registrar in conversion of and exchange for this Bond, all in the form and manner as provided in the next paragraph hereof for the conversion and exchange of other Bonds. The Issuer shall pay the Paying AgentYRegistrar's standard or customary fees and charges for making such transfer, but the one requesting such transfer shall pay any taxes or other governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make transfers of regis- tration of this Bond or any portion hereof (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. The registered owner of this Bond shall be deemed and treated by the Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of liability upon this Bond to the extent of such payment, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary. ALL BONDS OF TI-HS SERIES are issuable solely as fully registered bonds, without interest coupons, in the denomination of any integral multiple of $5,000. As provided in the Bond Ordinance, this Bond, or any unredeemed portion hereof, may, at the request of the registered owner or thc assignee or assignees hereof, be converted into and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, payable to the appropriate registered owner, assignee, or assignees, as the case may be, having the same maturity date, and bearing interest at the same rate, in any d~nomination or denominations in any integral multiple of $5,000 as requested in writing by the appropriate registered owner, assignee, or assignees, as the ease may be, upon surrender of this Bond to the Paying Agent/Registrar for eancellation, all in accordance with the form and procedures set forth in the Bond Ordinance. The Issuer shall pay the Paying Agcnt/Registrar's star)clard or customal~ fees and charges for transferring, converting, and exchanging any Bond or any portion thereof, but the one requesting such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto as a condition precedent to the exercise of such privilege of conversion and exchange. Tho Paying Agent/Registrar shall not be required 19 DRAFT: 4-20-2000 to make any such conversion and exchange (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with rcspcct to any Bond or portion thcrcof callcd for redemption prior to maturity, within 45 days prior to its redemption date. IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Bond Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, and will promptly cause written notice thereof to be mailed to the registered owners of the Bonds. IT IS HEREBY certified, recited, and covenanted that this Bond has been duly and validly authorized, issued, sold, and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; that this Bond is a special obligation of the Issuer, secured by and payable, together with other bonds, from a first lien on and pledge of the "Pledged Revenues", which include initially the "Net Revenues of the System", as such terms are defined in the Bond Ordinance, with the System consisting of the City's entire combined waterworks, sewer, and electric light and power system. THE ISSUER has reserved the right, subject to the restrictions stated in the Bond Ordinance, to issue Additional Bonds payable from and secured by a first lien on and pledge of the "Pledged Revenues" on a parity with this Bond and series of which it is a part. THE ISSUER also has reserved the right, subject to the restrictions stated in the Bond Ordinance, to amend the Bond Ordinance with the approval of the holders or owners of fifty-one percent in principal amount of all outstanding bonds which are secured by and payable from a first lien on and pledge of the Pledged Revenues. THE REGISTERED OWNER hereof shall never have the right to demand payment of this Bond. or the interest hereon out of any funds raised or to be raised by taxation or fi'om any source whatsoever other than specified in the Bond Ordinance. BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of the terms and provisions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of this Bond and the Bond Ordinance constitute a contract between each registered owner hereof and the Issuer. 2O DRAFT: 4-20-2000 IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual or facsimile signature of the Mayor of the Issuer and countersigned and attested with the manual or facsimile signature of the City Secretary of the Issuer, and has caused the official seal of the Issuer to be duly impressed, or placed in facsimile, on this Bond. ATTEST: CITY OF DENTON, TEXAS By: By:. Jennifer Walters City Secretary, City of Denton, Texas Jack Miller Mayor, City of Denton, Texas (CITY SEAL) FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE PAYING AGENT/REGISTRAR'S A~NTICATION CERTIFICATE It is hereby certified that this Bond has been issued under the provisions of the Bond Ordinance described in this Bond; and that this Bond has been issued in conversion of and exchange for or replacement ora bond, bonds, or a portion ora bond or bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. BANK ONE, TEXAS, N.A. Paying Agent/Registrar Dated BE Authorized Representative (BOND INSURANCE LEGEND, IF ANY) 21 DRAFT: 4-20-2000 FORM OF ASSIGNMENT: ASSIGNMENT FOR VALUE RECEIVED, the undersigned registered owner of this Bond, or duly authorized representative or attorney thereof, hereby assigns this Bond to / / (Assiguee's Social Security or Taxpayer Identification Number) (print or typewrite Assignees name and address, including zip code) and hereby irrevocably constitutes and appo'mts attorney to transfer the registration of this Bond on the Paying Agent/Registrar's Registration Books with full power of substitution in the premises. Dated: Signature Guaranteed: NOTICE: Siguature(s) must be guaranteed by an eligible guarantor institution participating in a securities transfer association recognized siguamre guarantee program. Registered Owner NOTICE: This siguamre must correspond with the name of the Registered Owner appearing on the face of this Certificate in every particular without alteration or enlargement or any change whatsoever. NO. FORM OF SUBSTITLrrE TAXABLE SERIES 2000B BOND UNITED STATES OF AMERICA PRINCIPAL AMOUNT STATE OF TEXAS $ COUNTY OF DENTON CITY OF DENTON UTILITY SYSTEM REVENUE BOND TAXABLE SERIES 2000B INTEREST MATURITY ORIGINAL DATE RATE DATE OF ISSUE CUSIP NO. ,2000 22 DRAFT: 4-20-2000 ON THE MATURITY DATE specified above the CITY OF DENTON, in Denton County, Texas (the "Issuer"), being a political subdivision of the State of Texas, hereby promises to pay to , or to the registered assignee hereof (either being hereinafter called the "registered owner") the principal amount of and to pay interest thereon from April 15, 2000, to the maturity date specified above, or the date of redemption prior to maturity, at the interest rate per annum specified above; with interest being first due and payable on December 1, 2000, and semiannually on each June I and December 1 thereafter, except that if the date of authentication of this Bond is later than the first Record Date (hereinafter defined), such principal amount shall bear interest from the interest payment date next preceding the date of authentication, unless such date of authentication is after any Record Date (hereinafter defined) but on or before the next following interest payment date, in which case such principal amount shall bear interest from such next following interest payment date. Said interest shall be calculated on the basis of a 360-day year composed of twelve 30-day months. THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The principal of this Bond shall be paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or upon the date fixed for its redemption prior to maturity, at the Fort Worth, Texas, corporate trust office of BANK ONE, TEXAS, N.A., which is the "Paying Agent/Registrar" for this Bond. The payment of interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof on each interest payment date by cheek, dated as of such interest payment date, drawn by the Paying Agent/Registrar on, and payable solely from, funds of the Issuer required by the ordinance authorizing the issuance of the Bonds (the "Bond Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such check shall be scm by the Paying Agent/Registrar by United States mail, first-class postage prepaid, on each such interest payment date, to the registered owner hereof, at the address of the registered owner, as it appeared at the close of business on the 15th day of the month next preceding each such date (the "Record Date") on the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. However, the payment of such interest may be made by any other method acceptable to the Paying Agent/Registrar and requested by, and at the risk and expense of, the registered owner hereof. Any accrued interest due upon the redemption of this Bond prior to maturity as provided herein shall be paid to the registered owner at the principal corporate trust office of the Paying Agent/Registrar upon presentation and surrender of this Bond for redemption and payment at the principal corporate trust office of the Paying Agent/Registrar. The Issuer covenants with the registered owner of this Bond that on or before each principal payment date, interest payment date, and accrued interest payment date for this Bond it will make available to the Paying Agent/Registrar, from the "Interest and Sinking Fund" created by the Bond Ordinance, the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the Bonds, when due. IN THE EVENT of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Issuer. Notice of the Special Record Date and of the scheduled payment date of the past due interest ("Special Payment Date", which shall be fif~n (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of each Holder of a Bond appearing on the registration books of the Paying Agent/Registrar at the close of bnsiness on the 15th business day next preceding the date of mailing of such notice. 23 DRAFT: 4-20-2000 IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. THIS BOND is one of a series of Bonds initially dated April 15, 2000, authorized in accordance with the Constitution and laws of the State of Texas in the principal amount of $ , for the purpose of providing for improvements and ex~nsions of the City of Denton Utility System, which consists of the City's Combined Waterworks, Sewer, and Electric Light and Power System. ON DECEMBER 1, 2010, or on any date whatsoever therea~er, the Bor~ds of this Series may be redeemed prior to their scheduled maturities, at the option of the Issuer, with funds derived from any available and lawful source, as a whole, or in part, and, if in part, the particular Bonds, or portions thereof, to be redeemed shall be selected and designated by the Issuer (provided that a portion of a Bond may be redeemed only in an integral multiple of $5,000), at the redemption price of the par or principal amount thereof, plus accrued interest to the date fixed for redemption. AT LEAST 30 days prior to the date fixed for any redemption of Bonds or portions thereof prior to maturity a written notice of such redemption shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, at least 30 days prior to the date fixed for any such redemption, to the registered owner of each Bond to be redeemed at its address as it appeared on the 45th day prior to such redemption date and to major securities depositories, national bond rating agencies and bond information services; provided, however, that the failure of the registered owner to receive such notice, or any defect therein or in the sending or mailing thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any Bond. By the date fixed for any such redemption due provision shall be made with the Paying Agent/Registrar for the payment of the required redemption price for the Bonds or portions thereof that are to be so redeemed. If such written notice of redemption is sent and if due provision for such payment is made, all as provided above, the Bonds or portions thereof that are to be so redeemed thereby automatically shall be treated as redeemed prior to their scheduled maturities, and they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being outstanding except for the right of the registered owner to receive the redemption price from the Paying Agent/Registrar out of the funds provided for such payment, ifa portion of any Bond shall be redeemed, a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the registered owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the Issuer, all as provided in the Bond Ordinance. THIS BOND OR ANY PORTION OR PORTIONS HEREOF IN ANY INTEGRAL MULTIPLE OF $5,000 may be assigned and shall be transferred only in the Registration Books of the Issuer kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, upon the terms and conditions set forth in the Bond Ordinance. Among other requirements for such assignment and transfer, this Bond must be presented and surrendered to the Paying Agent/Registrar, together with proper instruments of assignment, in form and with 8uarantee of si~atures satisfactory to the Paying A$¢nt/Registrar, evidencing assi~,.ment of this Bond or any portion or portions hereof in any integral multiple of $5,000 to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be transferred and registered. The form of Assignment printed or endorsed on this Bond shall be executed by the registered owner 24 DRAFT: 4-20-2000 or its duly authorized attorney or representative, to evidence the assignment hereof. A new Bond or Bonds payable to such assignee or assignees (which then will be the new registered owner or owners of such new Bond or Bonds), or to the previous registered owner in the case of the assignment and transfer of only a portion of this Bond, my be delivered by the Paying Agent/Registrar in conversion of and exchange for this Bond, all in the form and manner as provided in the next paragraph hereof for the conversion and exchange of other Bonds. The Issuer shall pay the Paying AgentfRegistrafs standard or customary fees and charges for making such transfer, but the one requesting such transfer shall pay any taxes or other governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make transfers of regis- tration of this Bond or any portion hereof(i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. The registered owner of this Bond shall be deemed and treated by the Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of liability upon this Bond to the extent of such payment, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary. ALL BONDS OF THIS SERIES are issuable solely as fully registered bonds, without interest coupons, in the denomination of any integral multiple of $5,000. As provided in the Bond Ordinance, this Bond, or any unredeemed portion hereof, may, at the request of the registered owner or the assignee or assignees hereof, be converted into and exchanged for a like aggregate principal amoum of fully registered bonds, without interest coupons, payable to the appropriate registered owner, assignee, or assignees, as the ease may be, having the same maturity date, and bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000 as requested in writing by the appropriate registered owner, assignee, or assignees, as the case may be, upon surrender of this Bond to the Paying Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Bond Ordinance. The Issuer shall pay the Paying AgentJRegistrar's standard or customary fees and charges for transferring, converting, and exchanging any Bond or any portion thereof, but the one requesting such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto as a condition precedent to the exercise of such privilege of conversion and exchange. The Paying Agent/Registrar shall not be required to make any such conversion and exchange (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or portion thereof ealled for redemption prior to maturity, within 45 days prior to its redemption date. IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Bond Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, and will promptly cause written notice thereof to be mailed to the registered owners of the Bonds. IT IS HEREBY certified, recited, and covenanted that this Bond has been duly and validly authorized, issued, sold, and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authoriTation, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; that this Bond is a special obligation of the Issuer, secured by and payable, together with other bonds, from a first lien on and pledge of the "Pledged Revenues", which include initially the 'qqet Rovenues of the SyStem", as such term~ are defined in the Bond Ordinance, with the System consisting of the City's entire combined watenvorks, sewer, and electric light and power system. 25 DRAFT: 4-20-2000 THE ISSUER has reserved the fight, subject to the restrictions stated in the Bond Ordinance, to issue Additional Bonds payable from and secured by a first lien on and pledge of the "Pledged Revenues" on a parity with this Bond and series of which it is a part. THE ISSUER also has reserved the right, subject to the restrictions stated in the Bond Ordinance, to amend the Bond Ordinance with the approval of the holders or owners of fifty-one percent in principal amount of all outstanding bonds which are secured by and payable from a first lien on and pledge of the Pledged Revenues. THE REGISTERED OWNER hereof shall never have the fight to demand payment of this Bond or the interest hereon out of any funds raised or to be raised by taxation or from any source whatsoever other than specified in the Bond Ordinance. BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of the terms and provisions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of this Bond and the Bond Ordinance constitute a contract between each registered owner hereof and the Issuer. IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual or facsimile signature of the Mayor of the Issuer and countersigned and attested with the manual or facsimile signature of the City Secretary of the Issuer, and has caused the official seal of the Issuer to be duly impressed, or placed in facsimile, on this Bond. ATTEST: CITY OF DENTON, TEXAS By: By:. Jennifer Walters City Secretary, City of Denton, Texas (CITY SEAL) Jack Miller Mayor, City of Denton, Texas FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been issued under the provisions of the Bond Ordinance described in this Bond; and that this Bond has been issued in conversion of and exchange for or replacement of a bond, bonds, or a portion of a bond or bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. BANK ONE, TEXAS, N.A. Paying Agent/Registrar Dated By Authorized Representative 26 (BOND INSURANCE LEGEND, IF ANY) DRAFT: 4-20-2000 FORM OF ASSIGNMENT: ASSIGNMENT FOR VALUE RECEIVED, the undersigned registered owner of this Bond, or duly authorized representative or attorney thereof, hereby assigns this Bond to / / (Assignee's Soeial Security or Taxpayer Identification Number) (print or typewrite Assignee's name and address, including zip code) and hereby irrevocably constitutes and appoints attorney to transfer the registration of this Bond on the Paying Agent/Registrar's Registration Books with full power of substitution in the premises. Dated: Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by an eligible guarantor institution participating in a securities transfer association recognized signature guarantee program. Registered Owner NOTICE: This signature must correspond with the name of the Registered Owner appearing on the face of this Certificate in every particular without alteration or enlargement or any change whatsoever. Section 8. DEFINITIONS. As used in this Ordinance the following terms shall have the meanings set forth below, unless the text hereof specifically indicates otherwise: (a) The terms "City" and "Issuer" shall mean the City of Denwn, in Denton County, Texas. (b) The term "City Council" or "Council" shall mean the governing body of the City. (c) The term "Bonds" shall mean collectively the Initial Bonds as defined and described in Section 2 of this Ordinance and all substitute bonds exchanged therefor, and all other substitute bonds and replacement bonds, issued pursuant to and as provided m this Ordinance. (d) The terra "Parity Bonds" shall mean collectively (i) the outstanding City o£Denton UfiliW gystem Revenue Bonds, Series 1992, authorized by ordinance passed on March 3, 1992 (the "Series 1992 Bonds"), (ii) the outstanding City of Denton Utility System Revenue Bonds, Series 1993, authorized by ordinance passed on March 16, 1993 (the "Series 1993 Bonds"), (iii) the outstanding City of Denton Utility System Revenue 27 DRAFT: 4-20-2000 Refunding Bonds, Series 1993-A, authorized by ordinance passed on June 8, 1993 (the "Series 1993-A Bonds"), (iv) the outstanding City of Denton Utility System Revenue Refunding Bonds, Taxable Series 1993-B, authorized by ordinance passed on June 8, 1993 (the "Series 1993-B Bonds"), (v) the outstanding City of Denton Utility System Revenue Bonds, Series 1996, authorized by an ordinance passed on May 7, 1996 (the "Series 1996 Bonds"), (vi) the outstanding City of Denton Utility System Revenue Refunding Bonds, Series 1996-A, authorized by an ordinance passed on May 7, 1996 (the "Series 1996-A Bonds"), (vii) the outstanding City of Denton Utility System Revenue Bonds, Series 1998, authorized by an ordinance passed on March 24, 1998 (the "Series 1998 Bonds"), (viii) the outstanding City of Denton Utility System Revenue Refunding Bonds, Series 1998A, authorized by an ordinance passed on July 21, 1998 (the "Series 1998A Bonds"), (ix) the outstanding City of Denton Utility System Revenue Refunding Bonds, Series 1998B, authorized by an ordinance passed on August 4, 1998 (the "Series 1998B Bonds") and (x) the Bonds. (e) The term "Additional Bonds" shall mean the additional parity revenue bonds which the City reserves the right to issue in the future, in accordance with Section 25 of this Ordinance. (f) The term "System" shall mean (1) the City's entire existing waterworks and sewer system and the City's entire existing electric light and power system, together with ail future extensions, improvements, enlargemems, and additions thereto, and all replacements thereof, and (2) any other related facilities, all or any part of the revenues or income from which do, in the future, at the option of the City, and in accordance with law, become "Pledged Revenues" as hereinafter defined; provided that, notwithstanding the foregoing, and to the extent now or herezt'ter authorized or permitted by law, the term System shall not mean any water, sewer, electric, or other facilities of any kind which are declared not to be a part of the System, and which are acquired or constructed by the City with the proceeds from the issuance of"Speciai Facilities Bonds", which are hereby defined as being speciai revenue obligations of the City which are not payable from or secured by any Pledged Revenues, but which are secured by and payable from liens on and pledges of any other revenues, sources, or payments, including, but not limited to, special contract revenues or payments received from any other legal entity in connection with such facilities; and such revenues, sources, or payments shall not be considered as or constitute Gross Revenues of the System, unless and to the extent otherwise provided in the ordinance or ordinances authorizing the issuance of such "Special Facilities Bonds". (g) The terms "Gross Revenues of the System" and "Gross Revenues" shall mean ail revenues and income of every nature derived or received by the City from the operation and ownership of the System, including the interest income from the investment or deposit of money in any Fund created by this Ordinance. (la) The terms "Net Revenues of the System", and '~Net Revenues" shall mean ail Gross Revenues afar deducting therefrom an amount equal to the current expenses of operation and maintenance of the System, in- cluding all salaries, labor, materials, repairs, and extensions necessary to render efficient service, provided, however, that only such repairs and extensions, as in the judgment of the City Council, reasonably and fairly exercised by the adoption of appropriate resolutions, are necessary to keep the System in operation and render adequate semce to said City and the inhabitants thereof, or such as might be necessary to meet some physical accident or condition which would otheneise impair the Bonds or Additional Bonds, shall be deducted in determining 'SNet Revenues". Payments required to be made by the City for water supply or water facilities, sewer services or sewer facilities, fuel supply, and for the purchase of elecuic power, which payments under law constitute operation and maintenance expenses of any part of the System, shall constitute and be regarded as expenses of operation and tnui,~tenance of the gystem under this Ordinunce. Depreciation and amortization shall not constitute or be regarded as expenses of operation and maintenance of the System. (i) The term "Pledged Revenues" shall mean 28 DRAFT: 4-20-2000 (1) the Net Revenues, plus (2) any additional revenues, income, or other resources which are expected to be available to the City on a regular periodic basis, including, without linu'tation, any grants, donations, or income received or to be received from the United States Government, or any other public or private source, whether pursuant to an agreement or otherwise, which in the future may, at the option of the City, be pledged to the payment of the Parity Bonds or Additional Bonds. (j) The term "year" or "fiscal year" shall mean the fiscal year used by the City in connection with thc operation of the System. (k) The term "Government Obligations" shall mean direct obligations of the United States of America, including obligations thc principal of and interest on which are unconditionally guaranteed by the United States of America, which may be United States Treasury obligations such as its State and Local Govemment Series, and which may be in book-entry form. Section 9. PLEDGE. (a) The Bonds are "Additional Bonds" as permitted by Sections 24 and 25 of the ordinance passed on March 10, 1983, authorizing the City of Denton Revenue Refunding Bonds, Series 1983 (the "Series 1983 Bonds"); and it is hereby determined, declared, and resolved that ail of the Parity Bonds (including the Bonds) are secured and payable equally and ratably on a parity, and that Sections 8 through 28, of this Ordinance are supplemental to and cumulative of Sections 7 through 25 of the aforesaid ordinance passed on March 10, 1983, with Sections 8 through 28 of this Ordinance being applicable to all of the Parity Bonds. (b) The Parity Bonds and any Additional Bonds, and the interest thereon, including any interest coupons appertaining thereto, are and shall be secured by and payable from a first lien on and pledge of the Pledged Revenues, and the Pledged Revenues are further pledged to the establishment and maintenance of the Funds created by this Ordinance, and any Funds created by any ordinance authorizing the issuance of any Additional Bonds. The Parity Bonds and any Additional Bonds are not and will not be secured by or payable from a mortgage or deed of trust on any real, personal, or mixed properties constituting the System. Section 10. SYSTEM FUND. There heretofore has been and is hereby created and there shall be established and makntalned on the books of the City, and accounted for separate and apart from ail other funds of the City, a special fund to be entitled the "City of Denton Utility System Fund" (the "System Fund"). All Gross Revenues shall be credited to the System Fund immediatdy upon receipt, unless otherwise provided in this Ordinance. All current expenses of operation and maintenance of the System shall be paid from such Gross Revenues credited to the System Fund as a first charge against same. Before making any deposits hereinafter required to be made from the System Fund, the City shall retain in the System Fund at all times an amount at least equal to one-sixth of the amount budgeted for the then current fiscal year for the current operation and maintenance expenses of the System. Section 11. INTEREST AND SINKING FUND. For the sole purpose of paying the principal of and interest on all Parity Bonds and Additional Bonds, there heretofore has been and is hereby created and there shall be established and maintained on the books of the City, and accounted for separate and apart from all other xOunds oxethe City, a separate fund to be entitled the "City o£Denton Utility System Revenue Bonds Inter- est and Sinking Fund" (the "Interest and Sinking Fund"). 29 DRAFT: 4-20-2000 Section 12. RESERVE FUND. There heretofore has been, and is hereby, created, and there shall be established and r~aintained at Bank One, Texas, N.A., and hereafter, at the option of the City, established and maintained at anytime at any national bank having a capital and surplus in excess of $25,000,000, a separate fund to be entitled the "City of Denton Utility System Bonds and Additional Bonds Reserve Fund" (the "Reserve Fund"). The Reserve Fund shall be used to pay the principal of and interest on any Parity Bonds or Additional Bonds when and to the extent the mounts in the Interest and Sinking Fund available for such payment are insufficient for such purpose, and may be used for the purpose of finally retiring the last of any Parity Bonds or Additional Bonds. Section 13. EXTENSION AND IMPROVEMENT FUND. There heretofore has been and is hereby created and there shall be established and maintained on the books of the City, and aeenunted for separate and apart from all other funds of the City, a separate fund to be entitled the "City of Denton Utility System Extension and Improvement Fund" (the "Extension and Improvement Fund"). The Extension and Improvement Fund shall be used for the purpose of paying the costs of improvements, enlargements, extensions, additions, replacements, or other capital expenditures related to the System, or for paying the costs of unexpected or extraordinary repairs or replacements of the System for which System funds are not available, or for paying unexpected or extraordinary expenses of operation and maintenance of the System for which System funds are not otherwise available, or for any other lawful purpose. Section 14. EMERGENCY FUND. There is hereby created and there shall be established and maintained on the books of the City, and accounted for separate and apart from all other funds of the City, a separate fund to be entitled the "City of Denton Utility System Emergency Fund" (the "Emergency Fund"). The Emergency Fund shall be used for the purpose of paying unexpected or extraordinary expenses of repair, replacement, operation, and maintenance of the System for which neither System funds nor the moneys in the Extension and Improvement Fund are available. There was deposited in the Emergency Fund simultaneously with the delivery of the Series 1983 Bonds to the initial purchasers thereof from lawfully available funds of the City the amount of $250,000. All inve~U,~ent interest income from the Emergency Fund shall be transferred to the System Fund as received. Section 15. DEPOSITS OF PLEDGED REVENUES. Pledged Revenues shall be credited to or deposited in the Interest and Sinking Fund, the Reserve Fund, the Extension and Improvement Fund, and other funds when and as required by this Ordinance and any ordinance authorizing the issuance of Additional Bonds. Section 16. INVESTMENTS. Money in any Fund established pursuant to this Ordinance or any ordinance authorizing the issuance of Additional Bonds, may, at the option of the City, be placed in time deposits or certificates of deposit secured by obligations of'the type hereinafter described, or be invested in Government Obligations (as defined in Section 8 hereof) or obligations guaranteed or insured by the United States of America, which, in the opinion of the Attomey General of the United States, are backed by its full faith and credit or represent its general obligations, or invested in obligations of instrumentalities of the United States of America, including, but not limited to, evidences of indebtedness issued, insured, or guaranteed by such governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home Loan Banks, Government National Mortgage Association, United States Postal Service, Farmers Home Administration, Federal Home Loan Mortgage Association, Small Business Administration, Federal Housing Association, or Participation Certificates in the Federal Assets Financing Trust; provided that all such deposits and investments shall be made in such mariner as will. in the opinion of the City, permit the money required to be expended from any Fund to be available at the proper time or times as expe.~ed to be needed. Such inve~i~ents (except United States Treasury Obligations-State and Local Government Series investments held in book entry form, which shall at all times be valued at cost) shall be 3O DRAV~: 4-20-2000 valued in terms of current market value as of the last day of each riseal year. Unless otherwise set forth herein, all interest and income derived from such deposits and inve~ents immediately shall be credited to, and any losses debited to, the Fund from which the deposit or investment was made, and surpluses in any Fund shall or may be disposed of as hereinafter provided. Such investments shall be sold promptly when necessary to prevent any default in connection with the Parity Bonds or Additional Bonds consistent with the ordinances, respectively, authorizing their issuance. Section 17. FUNDS SECURED. That money in all Funds created by this Ordinance, to the extent not invested, shall be secured in the manner prescribed by law. Section 18. PRIORITY OF DEPOSITS AND PAYMENTS FROM SYSTEM FUND. That the City shall make the deposits and payments from Pledged Revenues in the System Fund when and as required by this Ordinance and any ordinance authorizing any Additional Bonds, and such deposits shall be made in the following manner and with the following irrevocable priorities, respectively: First, to the Interest and Sinking Fund, when and in the amounts required by this Ordinance and any ordinance authorizing any Additional Bonds; then Second, to the Reserve Fund, when and in the amounts required by this Ordinance and any ordinance authorizing any Additional Bonds; then to the Extension and Improvement Fund, when and as required by Section 21 of this Ordinance. Section 19. INTEREST AND SINKING FUND REQUIREMENTS. The City shall cause to be deposited to the credit of the Interest and Sinking Fund the accrued interest and any premium received from the sale of the Initial Bond, and on or before the 25th day of each month, the City shall cause to be deposited to the credit of the Interest and Sinking Fund, in approximately equal monthly payments, amounts sufficient, together with any other funds on hand therein, to pay all of the interest or principal and interest coming due, including the principal amount of any Parity Bonds required to be redeemed prior to maturity pursuant to any mandatory redemption requirements, on the Parity Bonds and any Additional Bonds on the next succeeding interest payment date. Any moneys so deposited in the Interest and Sinking Fund with respect to a mandatory redemption requirement, together with other lawfully available funds of the City, may be used by the City, to purchase, in advance of a mandatory redemption date and at a price not exceeding the principal amount thereof plus accrued interest thereon to the date of purchase, Parity Bonds which would be subject to being chosen for mandatory redemption on such mandatory redemption date. The Paying Agent shall cancel any Parity Bonds so purchased. Section 20. RESERVE FUND REQUIREMENTS. There is now on hand in the Reserve Fund an amount of muney and Government Obligations which is in excess of $3,000,000 and which is at least equal to the average annual principal and interest requirements of the outstanding Series 1992 Bonds, the Series 1993 Bonds, the Series 1993-A Bonds, the Taxable Series 1993-B Bonds, the Series 1996 Bonds, the Series 1996-A Bonds, the Series 1998 Bonds, the Series 1998A Bonds and the Series 1998B Bonds (the current "Required Reserve Amount"). Following the issuance and delivery of the Initial Bonds the Required Reserve Amount shall become and be an anaount of money and investments equal to the average annual principal and interest requirements of all the outstanding Parity Bonds and Additional Bonds; provided further, however, that the Required Reserve Amount shall never be less than $3,000,000 if the maximum annual principal and interest requirements on all outstanding Parity Bonds and Additional Bonds exceeds $3,000,000. Immediately aRer '31 DRAFT: 4-20-2000 the issuance and delivery of the Initial Bond there shall be deposited to the credit of the Reserve Fund, from the proceeds of the sale of the Initial Bond, money sufficient to cause the Reserve Fund to contain an aggregate amount of money and investments equal to the Required Reserve Amount for all then outstanding Parity Bonds. After the delivery of any future Additional Bonds the City shall cause the Reserve Fund to be increased, if and to the extent necessary, so that such Fund will contain an amount of money and inveaiments equal to the Required Reserve Amount. Any increase in the Required Reserve Amount may be funded from Pledged Revenues, or from proceeds from the sale of any Additional Bonds, or any other available source or combination of sources. All or any part of the Required Reserve Amount not funded imtially and immediately after the delivery of any installment or issue of Additional Bonds shall be funded, within not more than five years from the date of such delivery, by deposits of Pledged Revenues in approximately equal monthly installments on or before the 25th day of each month. Principal amounts of the Parity Bonds and any Addition- al Bonds which must be redeemed pursuant to any applicable mandatory redemption requirements shall be deemed to be maturing amounts of principal for the purpose of calculating principal and interest requirements on such bonds. When and so long as the amount in the Reserve Fund is not less than the Required Reserve Amount no deposits shall be made to the credit of the Reserve Fund; but when and if the Reserve Fund at any time contnlns less than the Required Reserve Amount, then the City shall transfer from Pledged Revenues in . the System Fund, and deposit to the credit of the Reserve Fund, monthly on or before the 25th day of each month, a sum equal to 1/60th of the Required Reserve Amount, until the Reserve Fund is restored to the Required Reserve Amount. The City specifically covenants that when and so long as the Reserve Fund co~tains the Required Reserve Amount, the City shall cause all amounts in excess of the Required'Reserve Amount to be deposited to the credit of the Interest and Sinking Fund. Section 21. EXTENSION AND IMPROVEMENT FUND REQUIREMENTS. During each year, subject and subordinate to making the required deposits to the credit of the Interest and Sinking Fund and the Reserve Fund, the City shall be required to deposit to the credit of the Extension and Improvement Fund, from Pledged Revenues in the System Fund, an amount equal to 8% of the "Adjusted Gross Revenues of the System", which term is hereby defined to mean the following: the Gross Revenues of the System for such year a_~r deducting from such Gross Revenues an amount equal to the current expenses of operation and maintenance of the System for such year which are directly attributable to (i) all fuel costs related to the production of electric energy by the City and/or (ii) the purchase of electric energy by the City. Additional excess Pledged Revenues may, at the option of the City Council, be deposited to the credit of the Improvement Fund as permitted by Section 22 (b) hereof, but no such additional deposit is required. All investment interest income from the Extension and Improvement Fund shall be retained in and reva_ain a part of such Fund. Section 22. DEFICIENCIES; EXCESS PLEDGED REVENUES. (a) If on any occasion there shall not be sufficient Pledged Revenues to make the required deposits into the Interest and Sinking Fund or the Reserve Fund, such deficiency shall be made up as soon as possible from the next available Pledged Revenues. 0o) Subject to making the required deposits to the credit of the various Funds when and as required by this Ordinance or any ordinance authorizing the issuance of Additional Bonds, any surplus Pledged Revenues may be used by the City for any lawful purpose. Section 23. PAYMENT OF PARITY BONDS AND ADDITIONAL BONDS. On or before December 1, 2000, and semiannually on or before each June 1 and December 1 thereafter while any of the 32 DRAFT: 4-20-2000 Parity Bonds or Additional Bonds are outstanding and unpaid the City shall make available to the Paying Agents therefor, out of the Interest and Sinking Fund, or if necessary, out of the Reserve Fund, money sufficient to pay, on each of such dates, the principal of and interest on the Parity Bonds and Additional Bonds as the same matures and comes due, or to redeem the Parity Bonds or Additional Bonds prior to maturity, either upon mandatory redemption or at the option of the City. At the direction of the City the Paying Agents shall either deliver paid Parity Bonds and Additional Bonds, and any interest coupons appe~_air~ng thereto, to the City or destroy ail paid Parity Bonds and Additional Bonds, and any coupons appertaining thereto, and furnish the City with an appropriate certificate of cancellation or destruction. Section 24. FINAL DEPOSITS. (a) Any Parity Bond or Additional Bond shall be deemed to be paid, retired, and no longer outstanding within the meaning of this Ordinance when payment of the principal of, redemption premium, if any, on such Parity Bond or Additional Bond, plus interest thereon to the due date thereof (whether such due date be by reason of maturity, upon redemption, or otherwise) either (i) shall have been made or caused to be made in accordance with the terms thereof (including the giving of any required notice ofredemptiun or provision for the proper giving of such notice having been made), or (ii) shall have been provided by irrevocably depositing with or making available to a Paying Agent therefor, in trust and irrevocably set aside exclusively for such payment, (1) money sufficient to make such payment or (2) Govern- ment Obligations which mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money to make such payment, and all necessary and proper fees, compensation, and expenses of such Paying Agent per~nlnjng to the Parity Bonds and Additional Bonds with respect to which such deposit is made shall have been paid or the payment thereof provided for to the satisfaction of such paying agent. At such time as a Bond or Additional Bond shall be deemed to be paid hereunder, as aforesaid, it shall no longer be secured by or entitled to the benefits of this Ordinance or a lien on and pledge of the Pledged Revenues, and shall be entitled to payment solely from such money or Govern- ment Obligations. Co) Any moneys so deposited with a paying agent may at the direction of the City also be invested in Government Obligations, maturing in the amounts and times as hereinbefore set forth, and all income from all Government Obligations in the hands of the paying agent pursuant to this Section which is not required for the payment of the Parity Bonds and Additional Bonds, the redemption premium, if any, and interest thereon, with respect to which such money has been so deposited, shall be turned over to the City or deposited as directed by the City. Section 25. ADDITIONAL BONDS. (a) The City shall have the right and power at any time and from time to time, and in one or more series or issues, to authorize, issue, and deliver additional parity revenue bonds (herein called "Additional Bonds"), in accordance with law, in any amounts, for any lawful purpose, including the refunding of any Parity Bonds or Additional Bonds, or other obligations. Such Additional Bonds, if and when authorized, issued, and delivered in accordance with this Ordinance, shall be payable from and secured by an irrevocable first lien on and pledge of the Pledged Revenues, equally and ratably on a parity in all respects with the Parity Bonds and any other outstanding Additional Bonds. CO) The principal of all Additional Bonds must be scheduled to be paid or mature on December 1 of the years in which such principal is scheduled to be paid or mature. Section 26. FURTHER REQUIREMENTS FOR ADDITIONAL BONDS. Additional Bonds shall be issued only in accordance with this Ordinance, and no installment, Series, or issue of Additionai Bonds shall be issued or delivered unless: 33 DRAFT: 4-20-2000 (a) The Mayor of the City and the City Secretary sign a written certificate to the effect that the City is not in default as to any covenant, condition, or obligation in connection with all then outstanding Parity Bonds and Additional Bonds, and the ordinances authorizing same, and that the Interest and Sinking Fund and the Reserve Fund each contains the amount then required to be therein. (h) An independent certified public accountant, or independent firm of certified public accountants, acting by and through a certified public accountant, signs a written certificate to the effect that, in his or its opinion, during either the next preceding fiscal year, or any twelve consecutive calendar month period out of the 18-month period immediately preceding the month in which the ordinance authorizing the issuance of the then proposed Additional Bonds is passed, the Pledged Revenues were at least (i) 1.25 times an amount equal to the average annual principal and interest requirements, and (ii) 1.10 limes an amount equal to the principal and interest requirements during the fiscal year during which such requirements are scheduled to be the greatest, of all Parity Bonds and Additional Bonds which are scheduled to be outstan~g after the delivery of the then proposed Additional Bonds. It is specifically provided, however, that in calculating the amount of Pledged Revenues for the purposes of this subsection Co), if there has been any increase in the rates or charges for services of the System which is then in effect, but which was not in effect during all or any part of thc entire period for which the Pledged Revenues are being calculated (hereinafter referred to as the "entire period") then the certified public accountant, or in lieu of the certified public accountant a firm of consulting engineers, shall determine and certify the amount of Pledged Revenues as being the total of (i) the actual Pledged Revenues for the entire period, plus (ii) a sum equal to the aggregate amount by which the actual billings to customers of the System during the entire period would have been increased if such increased rates or charges had been in effect during the entire period. (c) Provision shall be made in the ordinance authorizing their issuance for increasing the Reserve Fund to the Required Reserve Amount as required by Section 20 hereof. (d) All calculations of average annual principal and interest requirements of any bonds made in connection with the issuance of any then proposed Additional Bonds shall be made as of the date of such Additional Bonds; and also in making calculations for such purpose, and for any other purpose under this Ordinance, principal amounts of any bonds which must be redeemed prior to maturity pursuant to any applicable mandatory redemption requirements shall be deemed to be maturing amounts of principal of such bonds. Section 27. GENERAL COVENANTS. The City further covenants and agrees that in accordance with and to the extent required or permitted by law: (a) Performance. It will faithfully perform at all times any and all covenants, undertakings, stipulations, and provisions contained in this Ordinance, and each ordinance authorizing the issuance of Additional Bonds, and in each and every Parity Bond and Additional Bond; that it will promptly pay or cause to be paid the principal of and interest on every Parity Bond and Additional Bond, on the dates and in the places and manner prescribed in such ordinances and Parity Bonds or Additional Bonds; and that it will, at the times and in the manner prescribed, deposit or cause to be deposited the amounts required to be deposited into the Interest and Sinking Fund and the Reserve Fund; and any holder of the Parity Bonds or Additional Bonds may require the City, its officials, and employees, to carry out, respect, or enforce the covenants and obligations of this Ordinance, or any ordinance authori~i-g the issuance of Additional Bonda, by all legal and equitable means, including specifically, but without limitation, the use and filing of mandamus proceedings, in any court of competent jurisdiction, against the City, its officials, and employees. 34 DRAFT: 4-20-2000 (b) City's Legal Authority. The City is a duly created and existing home rule city of the State of Texas, and is duly authorized under the laws of the State of Texas to create and issue the Parity Bonds and Additional Bonds; that all action on its part for the creation and issuance of the said obligations has been or will be duly and effectively taken, and that said obligations in the hands of the holders and owners thereof are and will be valid and enforceable special obligations of the City in accordance with their terms. (c) Title. The City has or will obtain lawful title to the lands, buildings, structures, and facilities constituting the System, that it warrants that it will defend the rifle to all the aforesaid lands, buildings, structures, and facilities, and every part thereof, for the benefit of the holders and owners of the parity Bonds and Additional Bonds, against the claims and demands of all persons whomsoever, that it is lawfully qualified to pledge the Pledged Revenues to the payment of the Parity Bonds and Additional Bonds in the manner prescribed herein, and has lawfully exercised such fights. (d) Liens. The City will from time to time and before the same become delinquent pay and discharge ail taxes, assessments, and governmental charges, if any, which shall be lawfully imposed upon it, or the System, that it will pay all lawful claims for rents, royalties, labor, materials, and supplies which if unpaid might by law become a lien or charge thereon, the lien of which would be prior to or interfere with the liens hereof, so that the priority o£the liens granted hereunder shall be fully preserved in the manner provided herein, and that it will not create or suffer to be created any mechanic's, laborer%, materialman's, or other lien or charge which might or could be prior to the liens hereof, or do or suffer any matter or thing whereby the liens hereof might or could be impaired; provided, however, that no such tax, assessment, or charge, and that no such claims which might be used as the basis ora mechanic's, laborer's, materialman's, or other lien or charge, shall be required to be paid so long as the validity of the same shall be contested in good faith by the City. (e) Operation of System; No Free Service. While thc Parity Bonds or any Additional Bonds are outstanding and unpaid the City shall continuously and efficiently operate the System, and shall maintain the System in good condition, repair, and working order, all at reasonable cost. No free service of the System shall be allowed, and should the City or any of its agencies, instrumentalities, lessors, or concessionaires make use of the services and facilities of the System, payment monthly of the standard retail price of the services provided shall be made by the City or any of its agencies, instrumentalities, lessors, or concessionaires out of funds from sources other than the revenues of the System, unless made from surplus Pledged Revenues as permitted by Section 22(b) hereof. (f) Further Encumbrance. While the Parity Bonds or any Additional Bonds are outstanding and unpaid, the City shall not additionally encumber the Pledged Revenues in any manner, except as permitted in this Ordinance in connection with Additional Bonds, unless said encumbrance is made junior and subordinate in all respects tO the liens, pledges, covenants, and agreements of this Ordinance and any ordinance authorizing the issuance of Additional Bonds; but the right oftbe City to issue revenue bonds payable from a subordinate lien on surplus Pledged Revenues is specifically recognized and retained, as permitted under Section 22(b) hereof). (g) Sale or Disposal of Property. While the Parity Bonds or any Additional Bonds are outstanding and unpaid, the City shall not sell, convey, mortgage, encumber, lease, or in any manner transfer rifle to, or dedicate to other use, or otherwise dispose of, the System, or any significant or substantial part thereof; provided that whenever the City deeras it necessary to dispose of any property, machinery, fixtures, or equipment, or dedicate such property to other use, it may do so either when it has made arrangements to replace the same or provide substitutes therefor, or it is determined by resolution of the City Council that no such replacement or substitute is necessary. 35 DRAFT: 4-20-2000 (h) Insurance. (1) The City shall cause to be insured such parts of the System as would usually be insured by corporations operating like properties, with a responsible insurance company or companies, against risks, accidents, or casualties against which and to the extent insurance is usually carried by corporations operating like properties, including, to the extent reasonably obtainable, fire and extended coverage insurance, insurance against damage by floods, and use and occupancy insurance. Public liability and property damage insurance also shall be carried unless the City Attorney gives a written opinion to the effect that the City is not liable for claims which would be protected by such insurance. All insurance premiums shall be paid as an expense of operation of the System. At any time while any contractor engaged in construction work shall be fully responsible therefor, the City shall not be required to carry insurance on the work being constructed if the contractor is required to carry appropriate insurance. All such policies shall be open to the inspection of the Bondholders and their representatives at all reasonable times. Upon the happening of any loss or damage covered by insurance from one or more of said causes, the City shall make due proof of loss and shall do all things necessary or desirable to cause the insuring companies to make payment in full. directly to the City. The proceeds of insurance covering such property, together with any other funds necessary and available for such purpose, shall b~ used forthwith by the City for repairing the property damaged or replacing the property destroyed; provided, however, that if said insurance proceeds and other funds are insufficient for such purpose, then said insurance proceeds pertaining to the System shall be deposited in a special and separate trust fund, at an official depository of the City, to be designated thc Insurance Account. The Insurance Account shall be held until such time as other funds become available which, together with the Insurance Account, will be sufficient to make the repairs or replacements originally required. (2) The annual audit hereinafter required may contain a section commenting on whether or not the C has complied with the requirements of this Section with respect to the maintenance of insurance, and shall state whether or not all insurance premiums upon the insurance policies to which reference is made have been paid. (i) Annual Budget and Rate Covenant. The City shall prepare, prior to the beginning of each fiscal year, an annual budget, in accord~a~ce with law, reflecting an estimate of cash receipts and disbursements for the ensuing fiscal year in sufficient detail to indicate the probable Gross Revenues and Pledged Revenues for such fiscal year. The City shall fix, establish, maintain, and collect, such rates, charges, and fees for the use and availability of the System at all times as are necessary (1) to produce Gross Revenues sufficient, together with any other Pledged Revenues, to pay all current operation and maintenance expenses of the Systen~ and (2) to produce an amount of Pledged Revenues during each fiscal year at least equal to the greater of 1.25 times the average annual principal and interest requirements of all then outstanding Parity Bonds and Additional Bonds or 1.25 times the succeeding fiscal year's principal and interest requirements of all then outstanding Parity Bonds and Additional Bonds. (j) Records. The City shall keep proper books of record and account in which full, true, proper, and enrrect entries will be made of all dealings, activities, and transactions relating to the System, the Pledged Revenues, and the Funds created pursuant to this Ordinance, and all books, documents, and vouchers relating thereto shall at all reasonable times be made available for inspection upon request of any Bondholder or citizen of the City. To the extent consistent with the provisions of this Ordinance, the City shall keep its books and records in a manner conforming to standard accounting practices as usually would be followed by private corporations owning and operating a similar System, with appropriate recognition being given to essential differences between municipal and corporate accounting practices. (k) Audits. After the close of each fiscal year while any of the Parity Bonds or any Additional Bonds are outstanding, an audit will be made of the books and accounts relating to the System and the Pledged Revenues by an independent certified public accountant or an independent firm of certified public accountants. 36 DRAFT: 4-20-2000 As soon as practicable after the close of each such year, and when said audit has been completed and made available to the City, a copy of such audit for the preceding year shall be mailed to the Municipal Advisory Council of Texas, to each paying agent for any bonds payable from Pledged Revenues, and to any Bondholders who shall so request in writing. The annual audit reports shall be open to the inspection of the Bondholders and their agents and representatives at all reasonable times. (1) Governmental Agencies. It will comply with all of the terms and conditions of any and all franchises, permits, and authorizations applicable to or necessary with respect to the System, and which have been obtained from any governmental agency; and the City has or will obtain and keep in full force and effect all franchises, permits, authorization, and other requirements applicable to or necessary with respect to thc acquisition, construction, equipment, operation, and maintenance of the System. (m) No Competition. It will not operate, or grant any franchise or, to the extent it legally may, permit the acquisition, construction, or operation of, any facilities which would be in competition with the System, and to the extent that it legally may, the City will prohibit any such competing facilities. (n) No Arbitrage. The City covenants to and with the purchasers of the Parity Bonds and any Additional Bonds that no use will be made of the proceeds of any of such bonds at any time throughout the term of any of such bonds which, if such use had been reasonably expected on the date of delivery of any of such bonds to and payment therefor by the purchasers, would have caused any of such bonds to be arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), or any regulations or rulings pertaining thereto; and by this covenant the City is obligated to comply with the requirements of the aforesaid Code and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. The City further covenants that the proceeds of all such bonds will not otherwise be used directly or indirectly so as to cause all or any part of such bonds to be or become arbitrage bonds within the meaning of the aforesaid Code, or any regulations pertaining thereto. Section 28. AMENDMENT OF ORDINANCE. (a) The holders or owners of Parity Bonds and Additional Bonds aggregating in principal amount 51% of the aggregate principal amount of then outstanding Parity Bonds and Additional Bonds shall have the right from time to time to approve any amendment to this Ordinance which may be deemed necessary or desirable by the City, provided, however, that nothing herein contained shall permit or be construed to permit the amendment of the terms and conditions in this Ordinance or in the Parity Bonds or Additional Bonds so as to: (1) Make any change in the maturity of the outstanding Parity Bonds or Additional Bonds; (2) Reduce the rate of interest borne by any of the outstanding Parity Bonds or Additional Bonds; (3) Reduce the amount of the principal payable on the outstanding Parity Bonds or Additional Bonds; (4) Modify the terms of payment of principal of or interest on the outstanding Parity Bonds or Additional Bonds, or impose any conditions with respect to such payment; ($) Affect the rights of the holders or owners of less than all of the Parity Bonds and Additional Bonds then outstanding; 37 DRAFT: 4-20-2000 (6) Change the minimum percentage of the principal amount of Parity Bonds and Additional Bonds necessary for consent to such amendment. (b) If at any time the City shall desire to amend the Ordinance under this Section, the City shall cause notice of the proposed amendment to be published in a financial publication of general circulation in The City of New York, New York, once during each calendar week for at least two successive ealend~r weeks. Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy thereof is on file at the principal office of the Paying Agents for inspection by all holders or owners of Parity Bonds and Addi- tional Bonds. Such publication is not required, however, if notice in writing is given to each holder or owner of Parity Bonds and Additional Bonds. (c) Whenever at any time not less than thirty days, and within one year, from the date of the first publication of said notice or other service of written notice the City shall receive an instrument or instruments executed by the holders or owners of at least 51% in aggregate principal amount of all Parity Bonds and Additional Bonds then outstanding, which instrument or instruments shall refer to the proposed amendment described in said notice and which specifically consent to and approve such amendment in substantially the form of the copy thereof on file with the Paying Agents, the City Council may pass the amendatory ordinance in substantially the same form. (d) Upon the passage of any amendatory ordinance pursuant to the provisions of this Section, this Ordinance shall be deemed to be amended in accordance with such amendatory ordinance, and the respective rights, duties, and obligations under this Ordinance of the City, and all the holders or owners of then out- standing Parity Bonds and Additional Bonds and all future Parity Bonds and Additional Bonds shall thereafter be determined, exercised, and enforced hereunder, subject in all respects to such amendments. (e) Any consent given by the holder or owner of a Parity Bond or Additional Bond pursuant to the provisions of this Section shall be irrevocable for a period of one year from the date of the first publication of the notice provided for in this Section, and shall be conclusive and binding upon all future holders or owners of the same Parity Bond or Additional Bond during such period. Such consent may be revoked at any time after one year from the date of the first publication of such notice by the holder or owner who gave such consent, or by a successor in rifle, by filing notice thereof with the paying agents and the City, but such revoca- tion shall not be effective if the holders or owners of 51% in aggregate principal amount of the then outstanding Parity Bonds and Additional Bonds as in this Section defined have, prior to the attempted revocation, consented to, and approved the amendment. (0 For the purpose of this Section, the fact of the holding of Parity Bonds or Additional Bonds which are in bearer, coupon form, by any bondholder and the amount and numbers of such bearer Parity Bonds or Additional Bonds and the date of their holding same, may be proved by the affidavit of the person claiming to be such holder or owner, or by a certificate executed by any trust company, bank, banker, or any other. depository wherever situated showing that at the date therein mentioned such person had on deposit with such trust company, bank, banker, or other depository, the Parity Bonds and Additional Bonds described in such certificate. The City may conclusively assume that such ownership continues until written notice to the contrary is served upon the City. The ownership of all registered Parity Bonds and Additional Bonds shall be determined from the registration books kept by the registrar therefor. Section 29. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS. (a) Replacement Bonds. In the event any outstanding Bond is damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new bond of the same principal 38 DRAFT: 4-20-2000 amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement for such Bond in thc manner hereinafter provided. 00) Application for Replacement Bonds. Application for replacement of damaged, mutilated, lost, stolen, or destroyed Bonds shall be made by the registered owner thereof to the Paying Agent/Registrar. In every case of loss, theft, or destruction ora Bond, the registered owner applying for a replacement bond shall furnish to the Issuer and to the Paying Agent/Registrar such security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or destruction of a Bond, the registered owner shall furnish to the Issuer and to the Paying Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Bond, as the case may be. In every case of damage or mutilation of a Bond, the registered owner shall surrender to the Paying Agent/Registrar for cancellation the Bond so damaged or mutilated. (e) No Default Occurred. Notwithstanding the foregoing provisions of this Section, in the event any such Bond shall have matured, and no default has occurred which is then continuing in the payment of the principal of, redemption premium, if any, or interest on the Bond, the Issuer may authorize the payment of the same (without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing a replacement Bond, provided security or indemnity is furnished as above provided in this Section. (d) Charge for Issuing Replacement Bonds. Prior to the issuance of any replacement bond, the Paying Agent/Registrar shall charge the registered owner of such Bond with all legal, printing, and other expenses in connection therewith. Every replacement bond issued pursuant to the provisions of this Section by virtue of the fact that any Bond is lost, stolen, or destroyed shall constitute a contractual obligation of the Issuer whether or not the lost, stolen, or destroyed Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and all other Bonds duly issued under this Ordinance. (e) Authority for Issuing Replacement Bonds. In accordance with Chapter 1201, Texas Government Code, this Section of this Ordinance shall constitute authority for the issuance of any such replacement bond without necessity of further action by the governing body of the Issuer or any other body or person, and the duty of the replacement of such bonds is hereby authorized and imposed upon the Paying Agent/Registrar, and the Paying Agent/Registrar shall authenticate and deliver such Bonds in the form and manner and with the effect, as provided in Section 6(d) of this Ordinance for Bonds issued in conversion and exchange for other Bonds. Section 30. COVENANTS REGARDING TAX-EXEMPTION. The Issuer covenants to refrain from any action which would adversely affect, and to take such action to ensure, the treatment of the Series 2000A Bonds as obligations described in section 103 of the Code, the interest on which is not includable in the "gross income" oftheholder for purposes offederalincometaxafion. In furtherance thereof, the Issuer covenants as follows: (a) to tak~ any action to assure that no more than 10 percent of the proceeds of the Series 2000A Bonds (less amounts deposited to a reserve fund, if any) are used for any "private business use", as defined in section 141Co)(6) of the Code or, if more than 10 percent of the proceeds are so used, that mounts, whether or not received by the Issuer, with respect to such private business use, do not, under the terms of this Ordinance or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10.percent of the debt service on the Series 2000A Bonds, in contravention of section 141Co)(2) of the Code; 39 DRAFT: 4-20-2000 (b) to take any action to assure that in the event that the "private business use" described in subsection (a) hereof exceeds 5 percent of the proceeds of the Series 2000A Bonds (less amounts deposited into a reserve fund, if any) then the amount in excess of 5 percent is used for a "private business use" which is "related" and not "disproportionate", within the meaning of section 14 l(b)(3) of the Code, to the governmental use; (c) to take any action to assure that no amount which is greater than the lesser of $5,000,000, or 5 percent of the proceeds of the Series 2000A Bonds (less amounts deposited rote a reserve fund, if any) is directly or indirectly used to finance loans to persons, other than state or local governmental units, in contravention of section 141 (c) of the Code; (d) to refrain from taking any action which would otherwise result in the Series 2000A Bonds being treated as "private activity bonds" within the meaning of section 141(b) of the Code; (e) to refrain from taking any action that would result in the Series 2000A Bonds being "federally guaranteed" within the meaning of section 149(b) of the Code; (f) to refrain from using any portion of the proceeds of the Series 2000A Bonds, directly or indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as defined in section 148(b)(2) of the Code) which produces a materially higher yield over the term of the Series 2000A Bonds, other than inve~i~lent property acquired with - (1) proceeds of the Series 2000A Bonds invested for a reasonable temporary period of 3 years or less until such proceeds are needed for the purpose for which the Series 2000A Bonds are issued, (2) amounts invested in a bona fide debt service fund, within the meaning of section 1.148-1 (b) of the Treasury Regulations, and (3) amounts deposited in any reasonably required reserve or replacement fund to the extent such amounts do not exceed 10 percent of the stated principal amount (or, in the case ora discount, the issue price) of the Series 2000A Bonds; (g) to otherwise restrict the use of the proceeds of the Series 2000A Bonds or amounts treated as proceeds of the Series 2000A Bonds, as may be necessary, so that the Series 2000A Bonds do not otherwise contravene the requirements of section 148 of the Code (relating to arbitrage), Section 149(g) of the Code (relating to hedge bonds), and, to the extent applicable, section 149(d) of the Code (relating to advance refundings); and (h) to pay to thc United States of America at least once during each five-year period (beginning on the date of delivery of the Series 2000A Bonds) an amount that is at least equal to 90 percent of the "Excess Earnings", within the meaning of section 148(0 of the Code and to pay to the United States of America, not later that 60 days after the Series 2000A Bonds have been paid in full, 100 percent of the mount then required to be paid as a result of Excess Earnings under section 148(0 of the Code. 40 DRAFT: 4-20-2000 For purposes of the foregoing (a) and Co), the Issuer understands that the term "proceeds" includes "disposition proceeds" as defined in the Treasury Regulations and, in the case of refunding bonds, transferred proceeds (if any) and proceeds of the refunded bonds expended prior to the date of issuance of the Series 2000A Bonds. It is the understanding of the Issuer that the covenants cont~ined herein are intended to assure compliance with the Code and any regulations or rulings promulgated by the U.S. Depm hitent of the Treasury pursuant thereto. In the event that regulations or rulings are hereafter promulgated which modify, or expand provisions of the Code, as applicable to the Series 2000A Bonds, the Issuer will not be required to comply with any covenant contained herein to the extent that such failure to comply, in the opinion of nationally-recognized bond counsel, will not adversely affect the exemption from federal income taxation of interest on the Series 2000A Bonds under section 103 of the Code. In the event that regulations or rulings are hereafter promulgated which impose additional requirements which are applicable to the Series 2000A Bonds, the Issuer agrees to comply with the additional requirements to the extent necessary and reasonably possible, in the opinion of nationally-recognized bond counsel, to preserve the exemption from federal income taxation of interest on the Series 2000A Bonds under section 103 of the Code. In furtherance of such intention, the Issuer hereby authorizes and directs the Mayor to execute any documents, certificates or reports required by the Code and to make such elections, on behalf of the Issuer, which may be permitted by the Code as are consistent with the purpose for the issuance of the Series 2000A Bonds. The Issuer covenants to comply with the covenants contained in this section after defeasance of the Series 2000A Bonds. In order to facilitate compliance with the above covenant (h), a "Rebate Fund" is hereby established by the Issuer for the sole benefit of the United States of America, and such fund shall not be subject to the claim of any other person, including without limitation, the owners of the Certificates. The Rebate Fund is established for the additional purpose of compliance with Section 148 of the Code. Section 31. ALLOCATION OF, AND LIMITATION ON, EXPENDITURES FORTHE PROJECT. The Issuer covenants to account for the expenditure of sale proceeds and investment earnings to be used for the purposes described in Section 1 of this Ordinance (the "Project") on its books and records in accordance with the requirements of the Internal Revenue Code. The Issuer recognizes that in order for the proceeds to be considered used for the reimbursement of costs, the proceeds must be allocated to expenditures within 18 months of the later of the date that (1) the expenditure is made, or (2) the Project is completed; but in no event later than three years after the date on which the original expenditure is paid. The foregoing notwithstanding, the Issuer recognizes that in order for proceeds to be expended under the Internal Revenue Code, the sale proceeds or investment earnings must be expended no more than 60 days after the earlier of (1) the fifth anniversary of the delivery of the Series 2000A Bonds, or (2) the date the Series 2000A Bonds are retired. The Issuer agrees to obtain the advice of nationally-recognized bond counsel if such expenditure fails to comply with the foregoing to assure that such expenditure will not adversely affect the tax-exempt status of the Series 2000A Bonds. For purposes hereof, the Issuer shall not be obligated to comply with this covenant if it obtains an opinion that such failure to comply will not adversely affect the excludability for federal income tax purposes from gross income of the interest. Section 32. DISPOSITION OF PROJECT. The Issuer covenants that the property constituting the Project will not be sold or othenvise disposed in a transaction resulting in the receipt by the Issuer of cash or other compensation, unless the Issuer obtains an opinion of nationally-recognized bond counsel that such sale or other disposition will not adversely affect the tax-exempt status of the Series 2000A Bonds. Section 33. INTEREST EARNINGS ON BOND PROCEEDS. Interest earnings derived from the investment of proceeds from the sale of the Initial Bonds, other than proceeds deposited in the Interest and Sinking Fund and the Reserve Fund, shall be used along with other available proceeds for improving the 41 DRAFT: 4-20-2000 System; provided that after completion of the improvements if any of such interest earnings remain on hand, such interest earnings shall be deposited in the Interest and Sinking Fund. It is further provided, however, that any interest earnings on bond proceeds which are required to be rebated to the United States of America pursuant to the Covenants Regarding Tax-Exemption herein so as to prevent the Series 2000A Bonds from being arbitrage bonds shall be so rebated and not considered as interest earnings for the purposes of this Ordinance. Section 34. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS; BOND COUNSEL'S OPINION, CUSIP NUMBERS, PREAMBLE, AND INSURANCE. The Mayor of the Issuer is hereby authorized to have control of the Initial Bonds issued hereunder and all necessary records and proceedings pertaining to the Initial Bonds pending their delivery and the investigation, examination, and approval by the Attorney General of the State of Texas, and the registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the Initial Bonds said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptrollers Registration Certificate on the Initial Bonds, and the seal of said Comptroller shall be impressed, or placed in facsimile, on the Initial Bonds. The approving legal opinion of the Issuers Bond Counsel and the assigned CUSIP numbers may, at the option · of the Issuer, be printed on the Initial Bonds or on any Bonds issued and delivered in conversion of and exchange or replacement of any Bond, but neither shall have any legal effect, and shall be solely for the convenience and information of the registered owners of the Bonds. The preamble to this Ordinance is hereby adopted and made a part hereof for all purposes. If insurance is obtained on any of the Bonds, the Initial Bonds and all other Bonds shall bear an appropriate legend concerning insurance as provided by the insurer. Section 35. SALE OF INITIAL BONDS. The Initial Bonds are hereby sold and shall be delivered to , as representative of the underwriters, in accordance with the Bond Purchase Agreement dated the date of this Ordinance and presented to the City Council at this meeting. The Mayor is hereby authorized and directed to execute, on behalf of the Issuer, such Bond Purchase Agreement in the form and substance submitted at this meeting. Section 36. OFFICIAL STATEMENT. An Official Statement dated as of the date of this meeting has been prepared in connection with the sale of the Initial Bonds and the Bonds, in the form and substance submitted at this meeting. Said Official Statement and any supplement or addenda thereto have been and are hereby approved, and their use in the offer and sale of the Bonds is hereby approved. It is further officially found, determined, and declared that the statements and representations contained in said Official Statement are true and correct in all material respects, to the best knowledge and belief of the Issuer. The distribution and use of the Preliminary Official Statement dated April ._, 2000, prior to the date hereof is hereby ratified and approved. Section 37. DTC REGISTRATION. The Bonds initially shall be issued and delivered in such manner that no physical distribution of the Bonds will be made to the public, and The Depository Trust Company CDTC'), New York, New York, initially will act as depository for the Bonds. DTC has represented that it is a limited purpose trust company incorporated under the laws of the State of New York, a member of the Federal Reserve System, a 'clearing corporation" within the meaning of the New York Uniform Commercial Code, and a 'clearing agency" registered under Section 17A of the federal Securities Exchange Act of 1934, as amended, and the Issuer accepts, but in no way verifies, such representations. The Initial Bond authorized by tlals Ordinance shall be delivered to and rel~stered in the name oxethe Purchaser. I-Iowever, it is a condition of delivery and sale that the Purchaser, immediately after such delivery, shall cause the Paying Agent/Registrar, as provided for in this Ordinance, to cancel said Initial Bond and deliver in exchange therefor a substitute Bond for each maturity of such Initial Bond, with each such substitute Bond to be registered in the name of CEDE 42 DRAFT: 4-20-2000 & CO., the nominee of DTC, and it shall be the duty of the Paying Agent/Registrar to take such action. It is ' expected that DTC will hold the Bonds on behalf of the Purchaser and/or the DTC Participants, as defined and described in the Official Statement referred to and approved in Section 36 hereof (thc "DTC Participants"). So long as each Bond is registered in the name of CEDE & CO., the Paying Agent/Registrar shall treat and deal with DTC in all respects the same as if it were the actual and beneficial owner thereof. It is expected that DTC will l~aintaln a book entry system which will identify beneficial ownership of the Bonds by DTC Partici- pants in integral amounts of $5,000, with transfers of ownership being effected on the records of DTC and the DTC Participants pursuant to rules and regulations established by them, and that the substitute Bonds initially deposited with DTC shall be immobilized and not be further exchanged for substitute Bonds except as hereinaf- ter provided. The Issuer is not responsible or liable for any functions of DTC, will not be responsible for paying any fees or charges with respect to its services, will not be responsible or liable for maintaining, supervising, or reviewing the records of DTC or the DTC Participants, or protecting any interests or tights of the beneficial owners of the Bonds. It shall be the duty of the Purchaser and the DTC Participants to make all arrangements with DTC to establish this book-entry system, the beneficial ownership of the Bonds, and the method of paying the fees and charges of DTC. The Issuer does not represent, nor does it in any way covenant that the initial book-entry system established with DTC will be maintained in the future. Thc Issuer reserves . the right and option at any time in the future, in its sole discretion, to terminate the DTC (CEDE & CO.) book- entry only registration requirement described above, and to permit the Bonds to bc registered in the name of any owner. If the Issuer exercises its right and option to terminate such requirement, it shall give written notice of such termination to the Paying Agent/Registrar and to DTC, and thcreat~r thc Paying Agent/Registrar shall, upon presentation and proper request, register any Bond in any name as provided for in this Ordinance. Notwithstanding the initial establishment of the foregoing book-entry system with DTC, if for any reason any of the originally delivered substitute Bonds is duly filed with the Paying Agent/Registrar with proper request for transfer and substitution, as provided for in this Ordinance, substitute Bonds will be duly delivered as provided in this Ordinance, and there will be no assurance or representation that any book-entry system will be maintained for such Bonds. Section 38. COMPLIANCE WITH RULE 15c2-12. (a) Annual Reports. (i) The Issuer shall provide annually to each NRMSIR and any SID, within six months after the end of each fiscal year ending in or after 2000, financial information and operating data with respect to the Issuer of the general type included in the final Official Statement authorized by Section 36 of this Ordinance, being the information described in Exhibit A hereto, which Exhibit is attached to and incorporated in this Ordinance as if written word for word herein. Any financial statements so to be provided shall be (1) prepared in accordance with the accounting principles described in Exhibit A hereto, or such other accounting principles as the Issuer may be required to employ from time to time pursuant to state law or regulation, and (2) audited, if the Issuer commissions an audit of such statements and the audit is completed within the period during which they must be provided, ff the audit of such financial statements is not complete within such period, then the Issuer shall provide unaudited financial statements by the required time and will provide audited financial statements for the applicable fiscal year to each NRMSIR and any SID, when and if the audit report on such statements become available. (ii) If thc Issuer changes its fiscal year, it will notify each NRMSIR and any SID of the change (and of the date of the new fiscal year end) prior to thc next date by which the Issuer otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may bc included by specific refcrence to any document (including an official statement or other offering document, if it is available from thc MSRB) that theretofore has been provided to each NRMSIR and any SID or filed with the SEC. 43 DRAFT: 4-20-2000 (b) Material Event Notices. The Issuer shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any of the following events with respect to the Bonds, if such event is material within the meaning of the federal securities laws: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events a_fleeting the tax-exempt status of the Bonds; 7. Modifications to fights of holders ofthc Bonds; 8. Bond calls; 9. Defeasances; 10. Release, substitution, or sale of property securing repayment of the Bonds; and 11. Rating changes. The Issuer shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by the Issuer to provide financial information or operating data in accordance with subsection (a) of this Sec,.ion by the time required by such subsection. (e) Limitations~ Disclaimers~ and Amendments. (i) The Issuer shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the Issuer remains an "obligated person" with respect to the Bonds within the meaning o£the Rule, except that the Issuer in any event will give the notice required by Subseotion (b) hereof of any Bond calls and defeasance that cause the Issuer to no longer be such an "obligated person". (ii) The provisions of this Section are for the sole benefit of the registered owners and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable fight, remedy, or claim hereunder to any other person. The Issuer undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the Issuer's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The Issuer does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. 44 DRAFT: 4-20-2000 (iii) UNDER NO CIRCUMSTANCES SHALL THE ISSUER, ITS OFFICERS, AGENTS AND EMPLOYEES, BE LIABLE TO THE REGISTERED OWNER OR BENEFICIAL OWNER OF ANY BOND OR A.NY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE ISSUER, WHETHER NEGLIGENT OR WITHOUT FAULT ON rrs PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. (iv) No default by the Issuer in observing or performing its obligations under this Section shall comprise a breach of or default under the Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the Issuer under federal and state securities laws. (v) The provisions of this Section may be amended by the Issuer from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the Issuer, but only fi(l) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule since such offering as well as such changed circumstances and (2) either (a) thc registered owners of a majority in aggregate principal amount (or any greater amount required by any other- provision of this Ordinance that authorizes such an amendment) of the outstanding Bonds consent to such amendment or (b) a person that is unaffiliated with the Issuer (such as nationally recognized bond counsel) determined that such amendment will not materially impair the interest of the registered owners and beneficial owners of the Bonds. If the Issuer so amends the provisions of this Section, it shall include with any amended financial information or operating data next provided in accordance with subsection (a) of this Section an explanation, in narrative form, of the reason for the amendment and of the impact of any change in the type of financial information or operating data so provided. The Issuer may also amend or repeal the provisions of this continuing disclosure agreement if the SEC amends or repeals the applicable provision of thc Rule or a court of final jurisdiction enters judgment that such provisions of the Rule are invalid, but only if and to the extent that the provisions of this sentence would not prevent an underwriter from lawfully purchasing or selling Bonds in the primary offering of the Bonds. (d) Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: "MSRB" means the Municipal Securities Rulemaking Board. "NRMSIR" means each person whom the SEC or its staffhas dctermmed to be a nationally recognized municipal securities information repository within the meaning of the Rule from time to time. "Rule" means SEC Rule 15c2-12, as amended from time to time. "SEC" means the United States Securities and Exchange Commission, "gID" means any person designated by the grate of Texas or an authorized department, officer, or agency thereof as, and dctermmed by the SEC or its staffto be, a state information depository within the meaning of the Rule from time to time. 45 DRAFT: 4-20-2000 Section 39. FURTHER PROCEDURES. The Mayor of the Issuer, the City Secretary of the Issuer, and all other officers, employees, and agents of the Issuer, and each of them, shall be and they are hereby expressly authorized, empowered, and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge, and deliver in the name and under the corporate seal and on behalf of the Issuer all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Bond Ordinance, the Bonds, the sale of the Bonds, and the Official Statement; and the Assistant City Manager/Finance of the City shall cause the expenses of issuance of the Bonds to be paid from the proceeds of sale of the Initial Bonds or from other lawfully available funds of the Issuer. In case any officer whose si~ature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. Section 40. OPEN MEETINGS. The City Council has found and determ~ed that the meeting at which this Ordinance is considered is open to the public and that notice thereof was given in accordance with the provisions of the Texas Open Meetings, Law, Tex. Govt. Code, Chapter 551, as amended. Section 41. EFFECTIVE DATE. This Ordinance shall become effective immediately upon its passage and approval. 46 PASSED AND APPROVED this the 25th day of April, 2000. DRAFT: 4-20-2000 Jack Miller, Mayor ATrEST: Jennifer Walters, City Secretary APPROVED AS TO LEGAL FORM: Herbert L. Prouty, City Attorney 47 DRAFT: 4-20-2000 EXHIBIT A DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 38 of this Ordinance: Annual Financial Statements and Operating Data The financial information and operating data with respect to the Issuer to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the tables of the Official Statement referred to) below: Tables numbered 1 through 14, inclusive, under the captions "Thc Utility .System", "Debt Service Requirements" and "Financial Information" in the Official Statement. Appendix B in the Official Statement. Accounting Principles The accounting principles referred to in such Section are the accounting principles described in the notes to the financial statements referred to m the paragraph above. AGENDA INFORMATION SHEET Agenda No. ~--~.-~.~ Agenda Item. /~,'-~ ~/ AGENDA DATE: April 25, 2000 DEPARTMENT: Electric Utility ACM: Howard Martin, 349-8232 SUBJECT: Receive a presentation from Diversified Utility Consultants, Inc. regarding Electric Utility Rate Design. BACKGROUND: ~s the electric utility industry moves to a deregulated environment, Denton must prepare itself for the transition from regulated rates to competitive pricing of services whether the City chooses to opt in or opt out. In order to allow the City Council a better understanding of the concepts and issues related to the rate design, Diversified Utility Consultants, Inc. (DUCI) will present Traditional Cost of Service Allocations in Rate Design. This is the first of several educational programs that will be presented to the Council so that they will have the tools necessary to evaluate and make decisions regarding electric rates in a deregulated market. OPTIONS: None RECOMMENDATIONS: None PRIOR ACTION/REVIEW (Council, Boards, Commission): Presentation to Public Utilities Board FISCAL INFORMATION: N/A Director of Electric COST OF SERVICE, ALLOCATION, AND RATE DESIGN FOR A TYPICAL ELECTRIC UTILITY APRIL 25, 2000 O00Ol Generally a utility is allowed to recover its cost of providing service and sets prices or rates to accomplish such cost recovery. Cost of service or revenue requirement for a utility can be reduced to a simple general formula: Cost of Service = E+D+T+(IxR) E=Expenses; D=Depreciation; T=Taxes; and (IxR)=Investment times return The values employed in the formula are usually the costs associated for a test period typically a 12 month period referred to as a test year. In the case of a municipal utility case, the costs will be the approved electric utility budget. In allocating costs to a particular class of customers, there are three major steps: (1) functionalization, (2) classification, and (3) allocation. Each of these steps is discussed below. FI~ NC TiQSL~LIZATIO_~[ Cost of service items are first functionalized into major categories or functions. (i) l~roducfion ~ Production items or costs and investment include those associated with generating or purchasing power and delivery of that power to the utility's bulk transmission system. Examples included in the production function are generating equipment, fuel, labor, materials, and supplies utilized for O&M at generating facilities. (ii) Transmission - Transmission items or costs are those costs associated with the delivery of power over the primary transmission system or wheeling between other utilities. Transmission costs include labor, costs, materials and supplies necessary to maintain the transmission system. (iii) Distrihu_tion - These costs are incurred in connection with the delivery of power from the bulk transmission system through the secondary distribution system to the utility's customers. These costs include O&M, labor, and investment to operate and maintain distribution lines, substations, and other lower voltage facilities. (iv) Other~Eunctions (a) Customer Accounts Expense - These expenses include meter reading costs, billing expense, and recordkeeping costs. (b) Sales expense - Costs such as advertising, costs associated with new business development, etc. 00002 Functionalization for most expenses is a relatively straightforward process. Little controversy is created in the functionalization process. CLASSIFIC~ The next step in the allocation process is to classify all functionalized expenses as either demand, energy, or customer related expenses. A common approach to classification is to employ the predominance method, i.e., whether a particular account is fixed (demand), variable (energy), or customer related is determined on whether more than 50% of the account costs are demand, energy, or customer related. Attachment 1 sets forth an example of the predominance method classification for production O&M items. ALLOCAI[ON After completing the classification of costs, the next step it to allocate these costs to the various classes of customers to determine each customer class cost responsibility. (1) AllocationoLD_emand27msls - Demand costs are typically allocated on a coincident peak or some form cfa coincident peak basis. Such allocation methods include a 1CP, 3CP, 4CP, 12CP, and A&E(CP) approaches. A coincident peak is a customer class peak or demand at the time the electric system is peaking during each month cfa year. The demand allocation method employed will depend on the characteristics of the electric system. For example, ifa system has one pronounced monthly peak and alt other months are flat, then a 1CP method may be appropriate. Alternatively, if all 12 monthly peaks are at the same or similar level, a 12CP method may be employed. Attachment 2 is an example of Denton's load shape. Transmission and production costs are typically allocated employing the same demand allocation factor model. (2) Other. Demand Costs - Other demand related costs such as substations, primary lines, secondary lines, and line transformers are typically allocated employing noncoincident peak (NCP) demands. A noncoincident peak demand is the maximum demands of a particular customer or class without regard to the system peak. Another demand measure often employed with the NCP is what is called the Maximum Diversified Demand (MDD) which is the coincident dernand of the class at the time of the class peak. ENERGY ALLOCATORS System or class energy is employed to allocate energy related items. Classic examples of energy related costs are fuel and purchased power costs. 00O03 CUSTOMER ALLOCATORS Customer allocators (typically weighted) are employed to allocate costs related to distribution services, meters, and customer related services. Once total revenue requirements by class are developed, the next step is to develop a rate design. While different rate designs may shift costs between customers, the overall revenue requirement will not be affected. In most electric rate studies, rates are determined or set by first deriving the demand costs allocated to a class and dividing such demand cost by the class' (kw) billing determinants. Energy charges are developed by dividing the energy (allocated) costs by the (Kwh) billing determinants. Other rate design considerations include rate tilts (shifting, demand costs to energy or vice versa), customer migration and customer class definition, marginal cost pricing, time of day rates, economic development rates, declining block energy rates, and special contract rates. 0 0 0 0 Li Attachment 1 Page 1 of 2 CLASSIFICATION OF PRODUCTION EXPENSES Uni£orm System of Accounts' Account No. Description 500 501 5O2 503 504 Steam Power Generation Operation Operation supervision and engineering Fuel Steam expenses Steam from other sources Steam transferred-Ct. 5O5 506 507 510 511 512 513 514 517 518 519 52O 523 524 525 Electric expenses Miscellaneous steam power expenses Rents Maintenance Supervision and engineering Structures Boiler plant Electric plant Miscellaneous steam plant Nuclear Power Generation Operation Operation supervision and enginee~ing Fuel Coolants and water Steam expenses Electric expenses Miscellaneous nuclear power expenses Rents 528 529 530 Maintenance Supervision and engineering Structures Reactor plant equipment Clas~i'ficat~on Energy X X X X X X X X X X X X X X X X X X X X X Uniform Syst~. of Accounts' Account No. 535 536 537 538 539 5~0 541 542 543 544 545 546 547 548 549 55O 551 552 553 554 555 556 557 Description D.~u, nd Hydraulic Power Generation Operation Operation supervision and engineering X Water for power, X Hydraulic expenses X Electric expenses X Miscellaneous hydraulic power expenses X Rents X Maintenance Supervision and engineering X Structures X Reservoirs, dam. and waterways X Electric plant Miscellaneous hydraulic plant X Other Power Generation Op6ration Operation Supervision and engineering X Fuel Generation expenses X Miscellaneous other .power generation X Rents X Maintenance Supervision and engineering Structures Generating and electric equipment Miscellaneous other power generation plant Other Power Supply F~penses Purchased power System control and load dispatching Other ~xpenses Attachment 1 Page 2 of 2 Classification E_nergy_ X As billed spuesnoq~ul spuecuao Attachment 2 Page I of 1 00007 REVENUE RE UIREMENT 0 Scha~u[e A-1-U 1998 TX Rate Case Page I of 1 12/98 Update 00O09 U-35-2 ScJ3edule B-1.1-U 1998 TX Rate Case Page I of 1 '°1 0 0 0 .l {) 12/98 Update U-35-60 ALLOCATED REVENUE REQUIREMENT Schedule P-U 1998 TX Rate Case Page I of 120 2/98 Update U-39-1 Schedule P-U 1998 TX Rate Case Page 3 of 120 !2/98 Update U-39-3 00{}18 Schedule P-U 1998 TX Rate Case Page 7 of 120 ~ ooo~ [2/98 Update U-39-7 Schedule P-U 1998 TX Rate Case Page 9 of 120 2/98 Update U-39-9 00O15 Schedule P-U 1998 TX Rate Case Page 41 of 120 !/98 Update U-3941 0 0 ['] .! b Schedule P-U 1998 TX Rate Case Page 43 of 120 2/98 Update oo ~~ ~o ~o~ oo- ~ ooo gog U-3943 000] / SUMMARY OF ALLOCATION FACTORS 000 '~ $ Schedule P-7.1 -U 1998 TX Rate Case Page 2 of 52 :/98 Update U-39-196 000] ~ Schedule P-7.1-U 1998 TX Rate Case Page 4 of 52 ~-/98 Update U-39-198 00020 Schedule P-7.1-U 1998 TX Rate Case Page 5 of 52 ~ ~o o' o~ .-· oo ~ o ~ .V98 Update z z ~ z z : i i i : : U-39-199 Schedule P-7.1-U 1998 TX Rate Case Page 8 of 52 2/98 Update U-39-202 000,~2 Schedule P-7.1-U 1998 TX Rate Case Page 11 of 52 ~/98 Update U-39-205 0 0 0 ~ 3 CALCULATION OF ALLOCATION FACTORS O0 024 o o y. OOO25 2/98 Update U-39-247 SCHEDUU= P-7.2-U 1998 TX RATE CASE PAGE 2 OF 87 wZ _Z ::3 .~ (9<0 ::3 o 00026 12/98 Update U-39-248 SCHEDULE P-7.2oU n I~ 0 0002 '/ 12/98 ljpdate IJ-39-253 0002S 12/98 Update U-39-254 00[)29 12/98 Update U-39-259 SCHEDULE P-7.2-U PAGE 17 OF 87 00030 12/98 Update U-39-263 SCHEDULE P-7.2-U 1998 TX RATE CASE PAGE 18 OF 87 oo c;O O 00031 12/98 Update U-39.267 0 0 0 3 2 Z 0 0 0 0 Z O0 0u- 0 Z 0 uJ SCHEDULE P-7.2-U lgg6 TX RATE C~SE PAGE 49 OF 87 2/98 Update U-39-295 0 0 0 3,3 LINE NO. ENTERGY GULF STATES, INC. DEVELOPMENT OF SERVICE ALLOCATION FACTORS FOR THE TWELVE MONTHS ENDING JUNE 30, 1998 CLASS AVERAGE NUMBER OFCUSTOMERS ~ SECONDARY{1) MI=~ ER COST WEIGHTING (z) SCHEDULE P-7.2-U 1998 TX RATE CASE PAGE 51 OF 87 WEIGHTED NUMBER OF CUSTOMERS (a) (b) LOUISIANA 1 RESIDENTIAL 2 SMALL GENERAL SERVICE 3 GENERAL SERVICE 4 LARGE POWER SERVICE 5 HIGH LOAD FACTOR SERVICE 6 AIR SEPARATION PLANT SERVICE 7 ENERGY INTENSIVE SERVICE 8 COGENERATION DEFERRAL 9 WATER PUMPING SERVICE 10 LIGHTING 11 TOTAL (c) (d) (c) 277,076 1.00 277,076 29,043 2.65 72,069 12,640 5.56 71,568 745 2,005 5.72 4.~.~.~ 425,157 TEXAS 12 RESIDENTIAL 13 SMALL GENERAL SERVICE 14 GENERAL SERVICE 15 LARGE GENERAL SERVICE 16 LARGE INDUSTRIAL POWER SERVICE 17 INTERRUPTIBLE SERVICE 18 LIGHTING 19 TOTAL 20 TOTAL EGSI (1) Schedule P-7.2, PAGES 75 and 76, Col. (d) or (f) (2) Schedule P-7.2, PAGE 48 or 50, Col. (r.) Sponsored by James R. Thornton 289,295 23,367 13,402 215 1,840 1.00 289,295 2.38 55,613 5.49 74,532 8.03 2,409 421,849 847,006 2/98 Update U-39-297 SCHEDULE P-7.2-U 1998 TX RATE CASE PAGE 53 OF 87 ENTERGY GULF STATES, INC. DEVELOPMENT OF ALLOCATOR FOR METER INVESTMENT AND RELATED COSTS FOR THE TWELVE MONTHS ENDING JUNE 30, 1998 (INCLUDES CTs & PTs) CLASS OF SERVICE AVERAGE AVERAGE AVERAGE METER NUMBER OF COST INVESTMENT CUSTOMERS(1) PER METER(2) (c) x (d) (b) TEXAS LINE NO. (a) (c) (d) I RESIDENTIAL 289,295 $35.53 2 SMALL GENERAL SERVICE (~) 23,367 $84.68 3 GENERAL SERVICE 13,576 $308.52 4 LARGE GENERAL SERVICE 300 $5,965.19 5 LARGE INDUSTRIAL POWER SERVICE 67 $50,602.30 6 INTERRUPTIBLE SERVICE 0 $51,282.12 7 STREET AND AREA LIGHTING N/A N/A 8 TOTAL TEXAS RETAIL 326,605 9 WHOLESALE FOR RESALE(3) 55 10 WHEELING(3) 0 11 TOTAL TEXAS 326,660 (e) $10,278,651 $1,978,718 $4,188,468 $1,789,557 $3,390,354 $o N/A $66.21 $21,625,748 $45,134.29 $2,482,386 $45,134.29 $0 $75.22 $24,570,003 12/98 Update (1) SCHEDULE P-7.2, PAGE 75 - 76 (2) SCHEDULE P-7.2, PAGES 65 - 70 (3) NUMBER OF METER POINTS FROM BILLING RECORDS (4) 1,950 OF UMS AND TSS CUSTOMERS EXCLUDED FROM SGS Sponsored by James R. Thornton 00O35 U-39-299 SCHEDULE P-7.2~U 1998 TX RATE CASE PAGE 24 OF 87 ENTERGY GULF STATES, INC. DEVELOPMENT OF ADJUSTED MWH FOR THE TWELVE MONTHS ENDING JUNE 30, 1998 (in MWHs) TEXAS RESIDENTIAL: SECONDARY SMALL GENERAL SERVICE: SECONDARY PRIMARY TOTAL GENERAL SERVICE: SECONDARY PRIMARY TRANSMISSION < 230 TOTAL ANNUAL ADJUSTMENT WEATHER{l) CUSTOMER(2) NET 4,304.801 (35,703) 60,573 4.329,671 206.934 (776) 5.477 211,635 206,934 (776) 5,477 211,635 2,083,950 (8,638) 13,532 2,088,844 138,401 (130) 941 139.212 12.156 12,156 2,234.507 (8,768) 14.473 2.240,212 LARGE GENERAL SERVICE: SECONDARY 717.047 (2,169) 714,878 PRIMARY 415.252 (626) 414,626 TRANSMISSION < 230 84,155 84,155 TOTAL 1,216.454 (2,795) 1,213,659 LARGE INDUSTRIAL POVVER SERVICE: SECONDARY PRIMARY 293,270 293,270 TRANSMISSION < 230 5,023,977 5,023,977 TRANSMISSION => 230 466,228 466,228 TOTAL 5,783,475 5,783,475 INTERRUPTIBLE SERVICE: PRIMARY TRANSMISSION < 230 TRANSMISSION => 230 TOTAL 1.830 1.830 203.227 203.227 275.256 275.256 _ 480.313 480.313 77,266 77.266 14.303 750 (48,042) 80,523 14,336 231 STREET & AREA LIGHTING TOTAL TEXAS RETAIL (1) See WP/Q-7/RD-4 (2) See WP/Q~7/RD-3 Sponsored by James R. Thornton 2/98 Update U-39-Z70 0 0 0 3 ('; ~2/98 Update SCHEDULE P~7.2-U 1998 TX RATE CASE PAGE 27 OF 87 U-39-273 0 0 0 3 '7 12/98 Update SCHEDULE P-7.2-U 1998 TX RATE CASE PAGE 31 OF 87 ~o~g C3 0 U-39-277 000 ,", [2/98 Update SCHEDULE P-7.2-U 1998 TX RATE CASE PAGE 35 OF 87 U-39-251 z .9o 00O39 SCHEDULE P-7.2-U 1998 TX RATE CASE PAGE 46 OF 87 ENTERGY GULF STATES, INC. SUMMARY OF DEMAND AND ENERGY LOSS FACTORS FOR THE TVVELVE MONTHS ENDING JUNE 30, 1998 LINE NO. VOLTAGE LEVEL DEMAND (a) (b) (c) 1 SECONDARY 9.8754% 2 PRIMARY 7.5230% 3 TRANSMISSION < 230 KV 2.4919% 4 TRANSMISSION >= 230 KV 0.7664% LOSS FACTORS ENERGY (d) 9.6269% 6.6215% 2.5958% 0.7722% (1) Transmission Policy Department Sponsored by James R. Thornton 00(')40 2/98 Update U-39-292 PROOF OF REVENUES BY CLASS o 0 0 SCHEDULE Q-I-U 1998 TX RATE CASE PAGE I OF I O0 -~ 2'08 Update 00 042 U-39A-1 SCHEDU-LE Q-7-U 1998 TX RATE CASE PAGE I OF 13 0004,3 :/98 Update U-39A-5 SCHEDULE Q-7-U 1998 TX RATE CASE PAGE 2 OF 13 z g O 1 '98 Update U-39A-6 0 0 () 4-.~ SCHEDULE Q-7-U 1998 TX RATE CASE PAGE 3 OF 13 2/98 Update 0 O {) ~ ~5 U-39A-7 SCHEDULE Q-7-U 1998 TX RATE CASE PAGE 4 OF 13 · 98 Update 0 0 ~") 4 ~;3 U-39A-8 SCHEDULE Q-7-U 1998 TX RATE CASE PAGE 5 OF 13 ~-/98 Update ? O U-39A-9 00O47 SCHEDULE Q-7-U 1998 TX l:~ATE CASE PAGE 6 OF 13 u uJ I ~98 Update U-39A-10 00O48 SCHEDULE Q-7-U 1998 TX RATE CASE PAGE 7 OF' 13 88 8 2/98 Update U-39A-11 SCHEDULE Q-7-U 1998 TX RATE CASE PAGE 8 OF 13 00O50 '98 Update U-39A-12 SCHEDULE Q-7-U 1998 TX R.ATE CASE PAGE 9 OF 13 w u. ~o ~o~ 2/98 Update o~ 00()51 U-39A-13 1998 TX RATE CASE PAGE 10 OF 13 ~o~_ Update U-39A-14 00[)S~ 2/98 Update ~o~o oo~ U-39A-15 SCHEDULE Q-74~ 1998 'l'x I-L-XTE (-:A S E PAGE 11 OFf3 8~8 o o o 00O53 1998 TX RATE CASE PAGE 12 OF 13 ~z~ § 5~ I /98 Update U-39A-16 O0 (']54 AGENDA DATE: DEPARTMENT: CM/DCM/ACM: AGENDA INFORMATION SHEET April 25, 2000 Fiscal Operations Kathy DuBose, Assistant City Manager ~-~ Fiscal and Municipal Services Agenda No. ~~.~_~ Agenda Item ,~.~ ~7~ , . SUBJECT: Consider approval of an ordinance with respect to proposed amendments to bond ordinances, and approving and providing an effective date. BACKGROUND: This ordinance will amend all outstanding utility revenue ordinances. This does not affect any general obligation or certificates of obligation bond ordinances. The current status of the electric industry in general, and electric deregulation in particular, including the passage of S.B.7, makes it necessary for the City to have more flexibility with respect to the system and to propose amendments to such covenants in order to remain competitive. The proposed amendment is in Section 26(g) of the 1983 Ordinance headed "Sale or Disposal of Property". PRIOR ACTION/REVIEW (Council. Boards, Commision): This was reviewed by the Debt Management Committee and the Public Utility Board and they approved to proceed with this amendment. FISCAL INFORMATION: There is no fiscal impact. Respl~ctfully submitted_: Diana Ortiz Director of Fiscal Operations DRAFT: 4-20-2000 ORDINANCE NO. 2000- ORDINANCE WITH RESPECT TO PROPOSED AMENDMENTS TO BOND ORDINANCES; AND APPROVING SAME; AND PROVIDING AN EFFECTIVE DATE. THE STATE OF TEXAS : COUNTY OF DENTON : CITY OF DENTON : WHEREAS, the Ordinance Authorizing the issuance of City of Denton, Texas Utility System Revenue Refunding Bonds, Series 1983 (the "1983 Ordinance") was adopted by the City o.f Denton (the "City") on March 10, 1983; and WHEREAS, pursuant to the 1983 Ord~inance and other subsequent ordinances (the "Other Bond Ordinances", and collectively with the 1983 Ordinance, the "Bond Ordinances"), the City has heretofore issued the following revenue bonds that are currently outstanding: City of Denton Utility System Revenue Bonds, Series 1992, dated March l, 1992; City of Denton Utility System Revenue Bonds, Series 1993, dated March l, 1993; City of Denton Utility System Revenue Reftmcling Bonds, Series 1993-A, dated June l, 1993; City of Denton Utility System Revenue Refunding Bonds, Taxable Series 1993-B, dated June 1, 1993; City of Denton Utility System Revenue Bonds, Series 1996, dated May 1, 1996; City of Denton Utility System Revenue Refunding Bonds, Series 1996-A, dated May 1, 1996; City of Denton Utility System Revenue Bonds, Series 1998, dated March 15, 1995; City of Denton Utility System Revenue Refunding Bonds, Series 1998A, dated July 15, 1998; City of Denton Utility System Revenue Refunding Bonds, Series 1998B, dated August l, 1998; and WHEREAS, the Bond Ordinances contain certain covenants for the benefit of the bondholders, including a covenant that restricts the ability of the City to sell or dispose of any siguifieant portion of the City's combined water, wastewater and electric system (the "System") and a covenant that restricts the ability of the City to permit competition with the System; and WHEREAS, the current status of the electric industry in general, and electric deregulation in particular, including the passage of Senate Bill 7, makes it necessary for thc City to have more flexibility with respect to thc System and to propose amendments to such covenants in order to remain competitive; and DRAFT: 4-20-2000 WHEREAS, the City hereby finds that it is necessary, pursuant to Section 27 of the 1983 Ordinance and the corresponding sections of the Other Bond Ordinances, to authorize giving of a notice of such proposed amendments; NOW, THEREFORE THE CITY COUNCIL OF DENTON HEREBY ORDAINS: Section 1. NOTICE OF PROPOSED AIMENDMENTS. The City hereby authorizes and directs that notice of such proposed amendments be given to each bondholder by the Paying Agent/Registrar by first class mail sent to their addresses as shown in thc registration books kept by the Paying Agent/Registrar, including the bondholders of any Bonds issued at~er the effective date of this Ordinance. Section 2. FORM OF NOTICE. The form of such notice of the proposed amendments shall be as follows: CITY OF DENTON, TEXAS UTILITY SYSTEM REVENUE BONDS Series 1992, dated March 1, 1992 Taxable Series 1993-B, dated June 1, 1993 Series 1998, dated March 15, 1998 Series 1993, dated March 1, 1993 Series 1996, dated May 1, 1996 Series 1998A, dated July 15, 1998 Series 1993-A, dated June 1, 1993 Series 1996-A, dated May 1, 1996 Series 1998B, dated August I, 1998 NOTICE OF PROPOSED AMENDMENTS NOTICE IS HEREBY GIVEN that the City of Denton, Texas proposes to amend its Ordinance Authorizing the issuance of City of Denton, Texas Utility System Revenue Reftmdmg Bonds, Series 1983 (the "1983 Ordinance") adopted by the City of March 10, 1983 and each of the ordinances (the "Other Bond Ordinances") that relate to the captioned Bonds in the following manner: 1. Section 26(g) of the 1983 Ordinance headed "Sale or Disposal of Property" and the corresponding section of each of the Other Bond Ordinances are hereby amended and restated to read as follows: (g) Sale, Lease or Disposal of Property. No part of the System shall be sold, leased, mortgaged, demolished, removed or otherwise disposed of, except as follows: (1) To the extent permitted by law, the City may sell, lease, mortgage, demolish, remove or otherwise dispose of at any time and from time to time any property or 'facilities constituting part of the System only if(A) the City Council shall determine, as evidenced by a resolution to that effect, such property or facilities are not useful in the operation of the System, or (B) the proceeds of such sale are $250,000 or less, or the City Council shall determine, as evidenced by a resolution to that effect, the fair market value of the property or facilities exchanged is $250,000 or less, or (C) if DRAFT: 4-20-2000 such proceeds or fair market value exceeds $250,000 the City Council shall determine, as evidenced by a resolution to that effect, that the sale or exchange of such property or facilities will not impair the ability of the City to comply during the current or any future fiscal year with the covenant of the City set forth in Section 27(i) of this Ordinance. The proceeds of any such sale or exchange not used to acquire other property necessary or desirable for the sale or efficient operation of the System shall forthwith, at the option of the City, (i) be used to redeem or purchase Parity Bonds or Additional Bonds, (ii) otherwise be used to provide for the payment of Parity Bonds or Additional Bonds or (iii) be used for any other lawful purpose. (2) To the extent permitted by law, the City may lease or make contracts or grant licenses for the operation of, or make arrangements for the use of, or grant easements or other rights with respect to, any part of the System, provided that any such lease, contract, license, arrangement, easement or fight (A) does not impede the operation of the System by the City and (B) does not in any manner impair or adversely affect the fights or security of the owners of the Parity Bonds or Additional Bonds under this Ordinance; and provided, further, that if the depreciated cost of the property to be covered by any such lease, contract, license, arrangement, easement or other fight is in excess of $500,000, the City Council shall de,ermine, as evidenced by a resolution to that effect, that the action of the City with respect thereto does not result in a breach of the conditions under this clause (2). Any payments received by the City under or in connection with any such lease, contract, license, arrangement, easement or fight in respect of the System or any part thereof shall constitute Gross Revenues. 2. Section 26(j) ofthe 1983 Ordinance headed "Records" and the corresponding section of the Other Bond Ordinances are hereby amended and restated as follows: (j) Records. The City shall keep proper books of record and account in which full, true, proper, and correct entries will be made of all dealings, activities, and transactions relating to the System, the Pledged Revenues, and the Funds created pursuant to this Ordinance, and all books, documents, and vouchers relating thereto shall at all reasonable times be made available for inspection upon request of any Bondholder, provided, that all books, documents, and vouchers relating to the City's electric system shall be made available for inspection only to the extent required by law, including, without limitation, the provisions of Section 552.131 of the Texas Government Code. To the extent consistent with the provisions of this Ordinance, the City shall keep its books and records in a manner conforming to standard accounting practices as usually would be followed by private corporations owning and operating a similar System, with appropriate PASSED AND APPROVED this the 25th day of April, 2000. DRAFT: 4-20-2000 ATTEST: Jack Miller, Mayor Jennifer Walters, City Secretary APPROVED AS TO LEGAL FORM: Herbert L. Prouty, City Attorney BY:/[~ ~ AGENDA INFORMATION SHEET AgendaNor /~0-~/~ Agendaltem Date AGENDA DATE: DEPARTMENT: CM: April 25, 2000 Police Michael W. Je~ SUBJECT Receive a staff report, hold a discussion and provide staff direction regarding a group counseling program for couples to be presented by the Police Department's Family Services Coordinator. BACKGROUND During the Council Work Session on February 22, 2000, Chief Gary Matheson and Family Services Coordinator Richard Godoy presented a staff report to Council regarding a proposed couples counseling program to be presented to citizens by the Police Department. Some concems were expressed by Council members regarding the screening and selection process for participants, the structure and curriculum, any liability the City would potentially incur as a result of this program, and any information regarding other municipalities that might be offering such a program. This agenda item addresses those concerns. As stated in the agenda information sheet of February 22, 2000, Mr. Godoy developed the idea for this program after identifying a gap in counseling services available to those married couples who had experienced conflicts in their relationships that had not escalated to physical assault. Mr. Godoy had received a significant number of requests from couples for conflict resolution since his employment in February 1997. After some research, he found that the only such counseling available was in the private sector, the cost of which would preclude those without insurance or other financial resources from participation. The only publicly offered counseling of this nature was designed for those persons who had been involved in physical assaults, many of which were mandated by court order as a part of the disposition of a criminal case. Dr. Peter Lehman, a social work professor with specialization in domestic violence at the University of Texas at Arlington, referred Mr. Godoy to Sandra Savage, MSW. Ms. Savage had implemented such a program in London, Ontario in 1987. Ms. Savage forwarded a copy of the curriculum to Mr. Godoy. SELECTION CRITERIA A couple that has expressed interest in participating in the couples group counseling program will schedule to meet with the Family Services Coordinator (FSC) for a joint counseling session. During this session, the FSC will gather information from the couple about their relationship history as well as the couples' motivation to participate in the program. Both individuals will then complete a Relationship Agreement Contract which will be used to ensure that both agree to work toward improving and enhancing their relationship. The FSC will schedule the couple for individual sessions with a licensed social worker of the same gender. The purpose of the individual session is to obtain each individual's perspective or perception of the problems they are experiencing, assess the individual's candidacy for the program, and ensure the safety of each individual. During these sessions, each individual will be asked to complete three assessment instruments: (1) Conflict Tactics Scale 2-Revised; (2) Domestic Conflict Index; and (3) Index of Relationship Satisfaction. The male individual will also complete the Psychological Maltreatment of Women Index. Each of these assessment tools have been validated and are widely used and accepted. The Conflict Tactics Scale 2-Revised was designed by Murry Strauss and is the most widely used scale within domestic violence agencies. The scale is used to measure the frequency and intensity of nineteen (19) tactics used by couples to resolve conflict. The scale measures behaviors ranging from passive (sulking or withdrawing) to hostile (insulting and swearing) to threatening to overt physical violence. Domestic Conflict Index was designed by Gayla Margolin and assesses fourteen (14) physically abusive behaviors and eleven (11) emotionally abusive behaviors that can occur in a relationship. The 51-item questionnaire includes eight (8) aggression items and all six (6) verbal symbolic aggression items from the Conflict Tactics Scale. These items have been supplemented with additional items of physical abuse, emotional abuse, and general anger. A total abuse index is constructed based on the sum of the physically abusive and emotionally abusive items. Index of Marital Satisfaction was designed by Professor Walter Hudson. It is a 25-item Likert scale questionnaire and is designed to measure the degree of satisfaction a couple has in their current relationship. Each individual responds to each item with a answer related to frequency, i.e. "none of the time" or "most of the time." The scale is scored by adding the responses to reveal the level of satisfaction. Psychological Maltreatment of Women Inventory (PMWI) was designed by Richard Tolman and is used to provide a more comprehensive assessment of abuse. The individual rates 58 items on a scale of"l"("never") to "5" ("very frequently). The items consist of forms of emotional or verbal abuse and forms of domination or isolation. Emotional or verbal abuse includes withholding emotional resources, verbal attacks and degrading behavior toward women. Dominance or isolation items include rigid observances of traditional sex roles, demands for subservience, and isolation from resources. Once the individual sessions are completed, the FSC will perform a historical search of the couples' current and previous addresses to determine the number of police calls for service and perform a local records check for prior arrests related to domestic violence. If the search reveals a police call for service in which an arrest was made or an arrest that is related to domestic violence, the couple will not be eligible for the program and will be referred to Friends of the Family for batterers counseling. If no arrests have been made for family violence, the couple will be eligible to participate in the group couples counseling. The FSC will meet with the Operations Division Commander, Family Services Unit Lieutenant, the Chief of Police, and a representative of Friends of the Family to review the criteria used to determine the couples' suitability for participation in the program. Those couples chosen will then be notified of their acceptance and be provided information regarding the program schedule. STRUCTURE AND COURSE CURRICULUM This counseling program consists of one session per week for a period of ten weeks. Each weekly session is 3.5 hours in length. For the first half of each session, the group is divided into two groups by gender. Each group meets with a social worker of the same gender to discuss issues such as socialization and sex-role stereotypes, power and control, self-esteem, communication and listening skills, anger management and conflict resolution. The two groups are reunited for the second half of the session where they will discuss those issues. The desired result will be an increased ability to effectively communicate and resolve conflicts, thereby decreasing the likelihood that their conflicts will escalate into physical violence. A week-by-week topic outline for each session, including the male and female group counseling, is attached. MONITORING AND OVERSIGHT During each week of the program, the FSC will meet with the Chief of Police, Operations Division Commander, Family Services Unit Lieutenant, and a representative of Friends of the Family to provide a progress report and evaluation of the program sessions. Additionally, this FSC's activities related to this program will receive clinical supervision from Professor Donald Granvold and Professor Peter Lehman. Granvold and Lehman will not only monitor the program's progress, but collect evaluation and outcome data to be used for academic, scholastic and professional purposes. The Denton Police Department Family Services Unit, the Family Services Coordinator, and the City of Denton will be included in any published literature that results from this program. LIABILITY ISSUES According to Assistant City Attorney Stephanie Berry, the group couples counseling program would be considered a proprietary fimction. Proprietary functions are those services or activities that the City chooses to provide for the benefit of citizens. Proprietary functions are conducted in addition to those governmental functions that a municipality are mandated to perform, such as responding to calls for police services such as a burglary in progress. Governmental functions carry an innate immunity from civil liability that proprietary functions do not. Therefore, the primary effect of this program would be the elimination of governmental immunity as a automatic, initial defense to any civil lawsuit that might originate from the counseling program's activities. However, the Police Department, and the City as a whole, is already involved in a variety of proprietary functions. One example is the Police Department's citizen ride-along program whereby citizens ride out with patrol officers to observe police activities and increase their understanding of law enforcement operations. A civilian ride-along is not a government function, but provides an invaluable opportunity to increase understanding and awareness of citizens. While there is no record of any other municipal police agency providing a group couples counseling program similar to the one outlined here, Ms. Berry did say that she had spoken with two social workers at the Irving, Texas, Police Department. They both thought that is was a great idea and expressed a need for such a program in their jurisdiction. OPTIONS 1. Council can direct staff to implement the program without further review. 2. Council can request additional information or clarification regarding the program. 3. Council can direct staff not to implement this program. PRIOR ACTION/REVIEW: A written memorandum, dated August 26, 1999, was submitted to Council by Chief Matheson in response to concerns communicated by Deborah Cosimo to Council Member Cochran. During a scheduled Work Session on February 22, 2000, Council received a staff report on the couples counseling program from Chief of Police Gary Matheson and Family Services Coordinator Richard Godoy. At that time, Council approved proceeding with the program. Additionally, Council requested information that specifically addressed concerns regarding selection and screening criteria, the program structure and curriculum, coordination with other agencies such as Denton County Friends of the Family, potential liability, and information regarding other municipalities providing similar services. FISCAL IMPACT The City of Denton already employs Mr. Godoy as the Family Services Coordinator assigned within the Police Department. Mr. Godoy is an exempt employee and his salary is approximately $37,000 annually. Mr. Godoy's duties include individual counseling of individuals and families regarding domestic violence, child abuse, juvenile deliquency and other issues that adversely impact the familial unit. This program will not require the employment of additional personnel or procurement of specialized equipment. A minimal cost may be incurred for educational materials for the participants, but these expenditures can be absorbed into the Department's operating budget without undue hardship. Further, the purpose of this program is to improve the conflict resolution and communication skills of married couples. If this program is successful, the Department should see a decrease in domestic disturbance calls that involve verbal conflicts. Respectfully suJ~mj~tted, Gary L. Matheson Chief of Police Prepared by: J~usewright Support Operations Captain Couples Group Session Outline Session One: Group Introductions Cost/Benefit Analysis of the use of Power/Control Definition of Power/Control Use of time-outs Session Two: Time-Out Exercise Time-Out Contract Review Sex-Role Stereotypes Session Three: Review of Time-Out Continuum of Violence (Cycle) Power and Control Wheel Conflict Resolution Session Four: Cognitive Behavioral Theory Self-Talk Anger Logs Session Five: Review of Anger Logs Anger Log Exercise Relationship Myths General Review & Re-Evaluation Session Six: Review Anger Logs Assertive Skills 101 Session Seven: Resolving Relationship Conflicts Session Eight: Special Interest Topic Film (In-Love) Impact of relationship Distress/conflict on children Session Nine: Active Listening The Art of Communication Session Ten: Goal Setting Review Future Planning Termination/Closing Remarks Session One: Session Two: Session Three: Session Four: Session Five: Session Six: Session Seven: Session Eight: Session Nine: Session Ten: SESSION THEMES MEN"S GROUP Introductions/Expectations Provocation/Choice Weekly Self-Report Reactions to Session One Male Socialization Different types of Abuse Continuum of Violence (Cycle Anger/Conflict Resolution What is my partner experiencing Development of Healthy Self-Esteem Cognitive Behavioral Theory Relationship Myths/Feelings Intimacy Issues (Sex) Hopes and Fears about Change Conflict Resolution/Communication Cognitive Behavioral Theory Verbal/Emotional Conflict Alcohol/Drug Use/Abuse Intimacy Issues (Sex) Impact of relationship distress/conflict on children Legal Issues Cognitive Behavioral Theory Individual Needs Vs. Relationship Needs (Sexuality) Separation/End of Relationship Issues Hopes and Fears about the future Relationship Goal Setting Personal Evaluation Termination/Closing Remarks Session One: Session Two: SESSION THEMES WOMEN"S GROUP Introductions/Expectations Reactions to Session One Safety Issues Community Resources Faulty Attributions/Assumptions Weekly Report Reactions to Session One Female Socialization Session Three: Session Four: Session Five: Session Six: Session Seven: Session Eight: Session Nine: Session Ten: Continuum of Violence (Cycle) Different types of Abuse Anger/Conflict Resolution Different types of Abuse Development of Self-Esteem Cognitive Behavioral Theory Relationship Myths/Feelings Intimacy Issues (Sex) Hopes and Fears about Change Conflict Resolution/Communication Coping Mechanisms used to cope with Conflict Previous Attempts to Change the Relationship Separation/End of Relationship Issues Dependency/Interdependency Different types of Abuse Individual Needs Vs. Relationship Needs (Sexuality) Impact of relationship distress/conflict on children Hopes and fears about the future Relationship Goal Setting Personal Evaluation Termination/Closing Remarks AGENDA INFORMATION SHEET Agenda No, ~- ~/~ Agendaltem Date ~/~D-/'~,~ .. / / AGENDA DATE: DEPARTMENT: ACM: April 25, 2000 Utilities Administration Howard Martin, 349-8232 SUBJECT: Receive a report, hold a discussion, and give staff direction regarding the Dunkin Sims Stoffels' contract for the joint Lake Ray Roberts Growth Management Plan proposed by the Cities of Denton and Dallas. BACKGROUND: Because of Lake Ray Roberts' ("Lake") importance as a water supply for the Cities of Denton and Dallas ("Cities"), the Cities began discussing the need for a Growth Management Plan for Lake Ray Roberts over a year ago. Problems in terms of excessive boat traffic and related pollutant problems at Lake Lewisville heightened the Cities' desire to protect the water quality of Lake Ray Roberts in the face of certain growth. By determining existing water quality conditions and estimating the impacts on the reservoir from future development, the Cities hope to develop a Growth Management Plan that will avoid the problems experienced at Lake Lewisville and other metroplex lakes. As you may recall, the U.S. Army Corps of Engineers completed the Programmatic Environmental Assessment (PEA) for Lake Lewisville this past fall. Because of the lack of environmental data and analyses, the City of Denton did not endorse the PEA. Despite objections raised by both the Cities of Denton and Dallas, especially in relation to MTBE concerns and further marina development on Lake Lewisville, the Corps did not alter any of its recommendations. Currently, two proposals for additional marinas for Lake Lewisville are pending. These applications, combined with the recent MTBE contamination in Lake Tawakoni, have significantly increased the public's concern for water quality. Given the extensive growth projected for the area around Lake Ray Roberts, the Cities recognize the need to establish water quality criteria and development controls for the Lake before development negatively impacts water quality. By establishing criteria before excessive development occurs, the Cities hope to avoid a Lake Lewisville scenario. After extensive negotiations with Dunkin Sims Stoffels, the Cities believe the proposed contract will produce the necessary information to develop a successful Growth Management Plan for the Lake. The firm is composed of an impressive multi-disciplinary team that includes, among others, Alan Plummer Associates, Inc. and Terry Morgan, an attorney specializing in land use issues. Both of these members of the team have worked extensively for Denton in the past. Dunkin Sims Stoffels, Inc.'s experience is sound: the firm developed the Ray Hubbard Development Plan, Hood County Strategic Plan (growth management plan around Lake Granbury), and numerous water quality studies and modeling for area lakes. The study for Lake Ray Roberts includes extensive data collection and analysis of existing information: topography, vegetation analysis, utility facilities and easements, soil data, hydrology, existing land use inventory, zoning ordinances (including septic tank and on-site sewage regulations), existing thoroughfares and lake access points, existing recreational facilities, Denton's Comprehensive Plan and other long-term plans (especially pertaining to water supplies), Texas Parks and Wildlife Department's (TPWD) parks and facilities, the U.S. Army Corps of Engineers' (Corps) current design and operations for Lake Ray Roberts, and lease agreements between all relevant parties. The study will also look at lake fluctuations, discharges from the lake, water basin identification and land use, and sedimentation analysis. Environmental considerations will include compilation of existing water quality data, additional water testing for specific concems (MTBEs, for example), and field sampling and laboratory analysis. At a minimum, any water quality concerns associated with nutrients, algae, organics, bacteria, sediment, and toxic substances will be addressed. In addition to water quality testing, wildlife habitats, preserves, and wetland areas will be considered. The study will then identify future growth trends and the impact of that growth on the water quality of Lake Ray Roberts. Lastly, the consultant will draft a Land Use Plan based on the findings of the study. The Plan will include methods of preserving environmentally sensitive areas, identifying recreation, residential, and commercial business opportunities, and identifying future thoroughfares. Once the Land Use Plan is completed, a comprehensive Growth Management Plan will be developed,. The Plan will include recommendations for water quality and quantity, land use, implementation policy and/or ordinances, environmental and wildlife protection, infrastructure guidelines, lake fluctuation, lake operation, and compliance options for state and federal regulations with an emphases on the new Stormwater II Regulations. The Growth Management Plan will become the guideline for future development activities around the Lake. RECOMMENDATION: Staff recommends approval of the Dunkin Sims Stoffel contract for development of a Growth Management Plan for Lake Ray Roberts. PRIOR ACTION/REVIEW (Council, Boards, Commission) This agenda item was presented to the Public Utilities Board at their April 17, 2000 meeting. ESTIMATED SCHEDULE OF PROJECT: The study is scheduled for Denton City Council approval May 2"a and for Dallas City Council approval May l0th. The study will take approximately one year to complete. FISCAL INFORMATION: The total cost of the study is $546,495. Demon's share is $142,089, or 26% of the entire cost. (The 26% reflect Denton's water right share in Lake Ray Roberts.) Funds for this project are available from the water utility budget. Exhibit I Ordinance Exhibit II Contract Respectfully submitted: Jull-~/S~ith ("' En i~nmental Ctn~pliance Manager ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL AGREEMENT WITH THE CITY OF DALLAS FOR THE LAKE RAY ROBERTS GROWTH MANAGEMENT PLAN; AUTHORIZING THE CITY MANAGER TO EXPEND FUNDS AS REQUIRED BY SUCH AGREEMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council has previously authorized and the City has entered into a Park Management Agreement with the Texas Parks and Wildlife Department and the City of Dallas, Texas which - among other things - requires the preparation of a Growth Management Plan for Lake Ray Roberts; and WHEREAS, the cities will jointly hire a consultant to prepare the Growth Management Plan at a cost not to exceed $546,495 with Denton's share of the cost being 26%; and WHEREAS, the City Council deems it in the public interest for the City of Denton to participate with the City of Dallas in preparing the Growth Management Plan for Lake Ray Roberts; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the City Manager is authorized to execute the attached Interlocal Agreement Lake Ray Roberts Growth Management Plan which is made a part of this ordinance for all purposes, with the City of Dallas, Texas, to provide for a Growth Management Plan for Lake Ray Roberts. SECTION 2. That the City Manager, and his designee, are authorized to expend the funds and to take the actions as set forth in the attached Interlocal Agreement. SECTION 3. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of .,2000. JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: ~ · 5 Page 2 of 2 INTERLOCAL AGREEMENT LAKE RAY ROBERTS GROWTH MANAGEMENT PLAN STATE OF TEXAS § COUNTY OF DALLAS §' . This Interlocal Agreement (hereinafter called "Agreem_ ent"), made pursuant.to Chapter 791, Texas Government Code, as amended, is entered into by and between the Ci_ty of Dallas, a Texas municipal corporation, of Dallas Count, Te. xas, (her.e. mafte,r referred to as "Dallas") and the City of Denton, a Texas mumcipai corporataon, or Denton County, Texas (hereinafter called "Denton"). WHEREAS, this Agreement involves governmental functions that each party individually can perf6rm; and WHEREAS, any amount paid by ,el, th, er. p.a. rty f.o.r the services to. be.]~erfot~-~ed is .t~mb~e made from current revenues avaiiavie to it and rainy compensates me party receiv g such payment for the services and functions performed by it. In consideration of'the mutual pr.or;rises, covenants and conditions contained in this Agreement, Dallas and Denton agree to the following: (1) The purpose of this Agreement is to state the tem-~s .an.n..d co.ndit, io.ns ~unde!w, hic. h Denton shall assist in preparing the Growth Management t'lan tor t~aice xay ~xooerts (hereinafter called the 'rGrowth Management Plan"): Th.e Growth Ma. nagem.ent P!a.n,.will address and fomxulate water quality, recreation, development and growth gu~oennes for Lake Ray Roberts (.h, ereinafter called "the lake") and adjacent ar_e.as..The pa.r. ties, agree that the consultant s scope of work for the Growth Management Plan is ctescribect in Exhibit A, which is attached'to and made a part of this Agreement. (3) Dallas agrees to award and administer, in consultation with Denton, a contract with the consultant to perform the Growth Management Plan development. Dallas and Denton both acknowledge their participation in the consultant selection process and will mutually agree upon the consultant robe selected. Dallas agrees that it will timely make payments in accordance with the terms and conditions of the consUltant contract and shall be responsible for enforcement of consultant contract 2provisions. The total amount of ttie consultant contract to be awarded shall not exceed $546,495.00 (this sum does not include the portion of the contract in which Dallas will utilize the consultant to perform work in connection with Lake Ray Hubbard; Dallas agrees that it is wholly responsible to provide funding for Lake Ray Hubbard work). (4) After award of th..e consultant contract, Denton agrees to provide Dallas with funding, each month during the term of the consultant c. on.tf, act, to rei .m. b,ur~S,eo~Dall, as fcOl~ Denton's share of the consultant contract expenses, m the amount or zo ~o ot eac Lake Ray Roberts- Interloca! Agreement monthly invoice submitted by the consultant. The 26% amount represents Denton's share of the consultant contract costs (which share shall not exceed-$142,089). Denton shall submit each payment to Dallas within 20 days after Denton's receipt of a copy of the consultant's invoice as provided by Dallas. Submission by Dallas of tr~e consultant's invoices to Denton shalJ constitute its assurance that the c'~nsultant has satisfactoril~ performed the services covered by the invoice in accordance with the consultant s contract. Dallas' share of the' consultant contract cost (not including the Lake Ray Hubbard work) will be 74%. (5). The scope of work for development of the Growth Management.. Plan may be increased only by mutual agreement of Dallas and Denton. If additional fundin~ is needed becat~se one of the parties desires to increase the scope of work to add£ess zecific concerns of that party r.elated to the Growth Management Plan or Lake Ray berts, or otherwise perform work solely for the benefit of thatparty, the party requesting the increase in scope of work shall pay 100% of the additional cost. If additionalfunding is needed for any other reason, and both Dallas and Denton agree that additional ft~ding is necessa~, Dallas and Denton agree to share in the additional costs as follows: Dallas - 74% of the total additional cost; Denton - 26% of the total additional cost. Denton shall provide such funding within twenty (20) days after receipt of a copy of the consultant invoice as provided by Dallas. Changes to the Agreement requiring an increase in funding from eithervarty shall be made only pursuant to supplemental agreement approved by the City Councils of Dallas and Denton. (6) The term of this Agreement shall begin on the date of its execution, and end upon final approval by Da~llas and Denton of the consultant's work and final payment of the consurt~int by Dallas. (7) To the extent infol'mation developed by the consultant developing the Growth Management Plan can be kept confidential under Texas law, reports, infom~ation, project evaluation, data or any other documentation developed by, given to, prepared by or assembled by the consultant developing the Growth Managerfient Plan-shall not be disclosed or made available by either party to any individual or organization (othe.r than the Corps of Engineers or the State of Texas Parks and Wildlife Deparhi-~ent) without the expressed prior written approval of the other party. If a party is required to disclose this i-nformafion as the result of a request made under the Texas Public InfozYz-~ation Act (Chapter 552 of the Government Code), such disclosure shall not constitute a breach of this agreement. (8) The work product deliverables and related documents of the Growth Management Plan consultant shall be considered joint property of both Dallas and Denton. The consultant shall deliver all documents to Db. llas. Denton, however, shall receive from Dallas without charge, copies of any and all of the work product deliverables and related documents received from the Growth Management Plan consultant within ten (10) days of Dallas receiving said documents. Any response required to requests for information make pursuant to the Texas Public Ihformation Act or the Fede?al Information Act shall be the responsibility of Dallas. (9) Either party may terminate this Agreement for convenience upon sixty (60) days advance written notice to the other party, with the understanding that all services being perfom-~ed under the consultant contract for the Growth Management Pla'n shall also be terminated by the date specified in such notice. To the extent that the Growth Management Plan consultant is owed compensation, Dallas may use available funding, Lake Ray Roberts ~ Interlocal Ag~e~rnent including that contributed by Denton, to pay the cons_ul..t_ant for Services satisfactorily renderedin accordance with the te~ms of the consultant s contract prior to the date of te~'~,tination. (10) All notices, communications, and reports required' or permitted under this Agreement shall be personally delivered or maile~i to the respective par~ies by depositing same in the Unite~l States mail, postage p. relvaid, at the addresses shown below, unless and until either party is otherwise notified in writing by the other {~arty at, the following addresses. Mailed notices shall be deemed communicated as of five days after mailing. ;If intended for Dallas, to: Terrace Stewart . Director, Dallas Water Utilities City of Dallas City Hall - Room 4/a/North 1500 Marilla Street Dallas, Texas 75201 If intended for Denton, to: Julie Smith Environmental Compliance Manager City of Denton 215 E. Mc_Kinney Street Denton, Texas 76201 (11) This Agreement is made subject to the provisions of the Charters and ordinances of Dallas and Denton, as amended, and all applicable State and Federal laws. (12) This Agreement shall be governed by and construed in accordance with the laws and court decis' ions of the State of Texas. (13) In case any one of more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegaI, or unenforceable in any respect, such invalidity, illegality, or unenforceability_ shall not affect any other provision thereof and this Agreement shall be considered as if such invalid, illegal, or unenforceable provision had never been contained in this Agreement. (14) This Agreement may be executed in any number of counterparts, each of which shall be deemed an originaland constitute one and the same instrument. (15) This Agreement embodies the complete agreement of the parties hereto, superseding all oral and written previoUs and conteinporary agreemen-ts between the parties relating to matters in this Agreement and cann- ot b~mbdified, except as may otherwise provided in this Agreement, without written supplemental agreement of the parties to be attached to and made a part of this Agreement. (16) When completed, a true, complete and correct copy of the Growth Manal~ement Plan will be attached to and made a part of that certalfi Park Management C~ntract l~ke Ray Roberts - Interlocal Agreement between Texas Parks and Wildlife Department and the Cities of Dallas and Denton, Texas, as supplemented. EXECUTED this the__ day of ,2000, by Dallas, signing by and through its City Manager, duly authorized to execute same by Resolution [qo. , adopted by the City Council On ' , 2000, and by Denton signing by ~ t~ugh ~ts City Manager, duly authorized to execute same by Resolution No. , adopted by the City Coundl on ,2000. APPROVED AS TO FORM: MADELEINE B. JOHNSON City Atto/ney CITY OF DALLAS TEODORO J. BENAVIDES City Manager BY Assistant City Attomev · l~glli.~.~ City~ APPROVED AS TO FORM: BY City Manager CITY OF DENTON MICHAEL W. JEZ City Manager BY Assistant City Attorney BY City Manager Imke Ray Robe~'~s - Interlocal Agr~rnent AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: April 25, 2000 Parks and ~ Dave Hill SUBJECT: Receive a report, hold a discussion and give staff direction regarding the use of Public Improvement Districts. BACKGROUND: At the work session on January 11th, the Council received a r poa on the use of Public Improvement Districts (PIDs) to fund the provision and maintenance of open space and other development requirements in new residential developments. PIDs were discussed as a possible strategy for elevating the quality of development, while minimizing costs for the City's taxpayers. The Council expressed an interest in further exploring this tool and directed staff to compile additional information and a draft ordinance for consideration. A copy of a briefing on PIDs by the Texas Attorney General's Office is attached for reference (Exhibit A). Staff recently met with representatives of several developers to gain their perspective on the use of PIDs. Represented were The Preserve, Wymae/Jackson (Country Lakes, foimerly Willow Lakes), River Oaks (Centex) and Hillwood Corporation. All are large tract owners in Denton, all but Hillwood are actively building or in the process of seeking approvals to develop. The developers were all supportive of the City's investigation of PI_Ds to enhance and sustain the quality of new neighborhoods. Hillwood has significant long-term experience with the use of PIDs, while Wyune/Jackson (Country Lakes) is using a PID/TIF (tax increment financing) structure in a new project in Grand Prairie. In particular, Wyrme Jackson expressed their interest in exploring a PID for the Country Lakes development on Crawford Road. Neither River Oaks nor The Preserve have experience with PIDs, but expressed interest. The developers offered their help in addressing several questions from the January 1 lth work session: 1. The number, nature and location of established PIDs: Exhibit B displays the location and types of functions incorporated into all known Texas PIDs. This information was provided by Hughes & Luce, attorneys from Dallas. While the number of PIDs appears limited, the developers indicated a growing interest in their use. Hillwood has used PIDs in mixed-use development to cover on-going operating, maintenance and management expenses only. Wynne/Jackson is working on a PID in Grand Prairie that will recover capital -1- costs. They also indicated that school buildings may be an eligible land improvement cost for PIDs. 2. The effect of PID assessments on the price of a home: The PID assessment is based on the property owner's proportionate share of the annual costs of the PID. PIDs may be formed to recover capital costs and debt service associated with improvements, operating/maintenance, and administration. Hillwood has funded only operating/maintenance and administration expenses with its PIDs, while Wynne/Jackson is looking at the recovery of capital costs. The developers generally believed that an average assessment of $35 to $45 per month was acceptable, although the figure may vary dependent upon the selling price of the home. 3. Applicability of PIDs to small developments: There was general agreement that PIDs may be more appropriate on developments of 150-200 or more acres with 300 or more lots. However, it was also stated that this threshold could vary, depending on the expenses to be recovered through the PID. Again, an assessment in the $35-45/month range was judged to be reasonable for the markets targeted by these developers. 4~ Effect of assessments on affordable housing: It is possible for the City to require each development to establish a PID, without regard to home price and size of development. However, the Council expressed concern about such a policy on affordable housing objectives. Wyrme/Jackson noted that the assessment would not be factored into the financing of a mortgage. Wyrme/Jackson also indicated that it may be possible to exempt qualified low- income buyers from paying assessments. 5. Administration costs to the City: PIDs are established by the City Council and the assessments are collected in conjunction with City taxes. The assessment should include the City's cost of administering the PID. Costs may include staffing and contract legal services. The City's costs will depend on the number of assessments within the district. Hillwood's Parkglen P1D requires payment of $10,000 to the City of Ft. Worth to defray these costs. 6. Service equity issues: Developers create PIDs to establish services at higher levels than otherwise provided by the City, and to defray related expenses. The creation of a PID does not relieve the City from continuing to provide base-level services at its own expense. Thus, service inequities may be created between the PID and adjacent communities. The use of PID facilities, which are public property, by residents from other neighborhoods can place a disproportionate share of expense on citizens within the PID. The developers were encouraged by the City's interest in PIDs as a mutually beneficial tool. However, the application of this strategy to all development, regardless of size and home price seems problematic. Also lacking at this time is a definitive statement of the City's requirements for new development. The work of the development code committee will provide a new baseline for these requirements. Based on the research conducted thus far, staff offers the following preliminary conclusions regarding the use of PIDs by the City of Denton: -2- 1. PIDs do represent an alternative financing mechanism for a wide range of public improvements, and are considered to be attractive to many developers within market limits. PIDs should be viewed as an alternative method of financing public improvements, provided the City's interests are properly protected. 2. Because PIDs can be used for many purposes staff believes that further research is needed to determine the appropriate role of the City, especially with regard to policy or regulatory options. 3. It appears that a size threshold does exist that may limit the feasibility of a PID. Properties under 150 acres may not be able to use PIDs advantageously. For this reason, the use of PIDs as an alternative to small HOAs may not be available. OPTIONS: · Direct staff to continue the study of PIDs and to prepare policy recommendations at a future Council meeting. · Direct staff to discontinue the study of PIDs. RECOMMENDATIONS: Staff recommends that its research into the appropriate use of PIDs continues, and that the development code committee's recommendations related to development requirements be incoq~orated into a PID policy and ordinance. ESTIMATED SCHEDULE OF PROJECT: Resume consideration of PIDs when site design standards and other related code revisions are adopted. PRIOR ACTION/REVIEW: January 11, 2000 City Council work session FISCAL INFORMATION: Not applicable at this time EXHIBITS: · Exhibit A--Texas Attorney General briefing on PIDs · Exhibit B Table of location and characteristics of Texas PIDs Respectfully submitted: Ed Hodney, Director Parks and Recreation Depathnent F:~admln\City Council~PIDs agenda sheet 4-25-00.do0 -3- · , *'~' ~11, Eoenomlo I Impro~.meau " Public Improvement Districts- _ I EXHIBIT Cities otk'0 need 1o make cetxain improvemen..ts to ~ ~~ to.~2t e~no~c ~o~ ~in '~ ~ Ncw'bU~nc~Cs m~y ~h~c ~no~ to- l~te ~e~e.-.~ ~' ~deq~ street, ~~ ~ ~c~ ~ o~ public ~iH~ or ~s ~t ~ ~efior. h B al~ d~c~t f~ ~;n~ b~es m pm~r ~ ~ ~c ~ve ~r ~blic ~~e. T~ law provides a n~r of ~s to ~e n~ ~c ~m~ ~ ~e ~ of~i~ ~en~. ~blic Im~vement ~ ~I~) off~ cities a me~ for ~~g such a proj~t. ~e Public im~v~mt ~ ~~z Act allo~ ~ ci~ to !~ ~d coH~ ~ial asses~en~ ~ p~ ~ ~ ~n ~ ci~ or ~ ~e ci~'s exhat~to~ j~i~on ~T~.~ ~ s~e au~o~ng ~e cre~ion of PIDs is fo~d ~ ~ter 372 of ~e ~I ~ve~ent C~e. ~e public ~~ ~ct may ~ fo~ to ~complish ~y of ~e follo~ im~vem~:~° · w~r, w~t~a~, h~ ~d ~go~ ~ ~e improv~en~ (incl~$ ~Mfion, co~on, or ~ovem~ of ~ter, w~, or ~a~ im~~); nanuwing, closing, or rex-outing sidewalks, su'eus, or any other rondways or zheir Fights- of-way); · mass transit improvements (acquisition. conmucdon: improvemcnt,.or rerouling of mass transportation facilities); . parkin~ improvements (acquisition, construction, or improvement of off-street i~r~ing facilities):. · library improveme~ns (acquisition, conumction, or improvement oflibrages); . ~ ~,ion. and cuhund improvcmenn (the establishmcm or improvcmcnt of parks); · landscaping and other aesdlelic improvements (erection of fountains, distinclive li~htin~ and - eft iMtallafion (acquisition and insullation ofpleces of art); · ~eatlon of pealers;an mails (consmg~n or improvement ofpedestrlan malls); · s;milar improvements (projects similar to those listed above); -4- ~l~(qx HO,; ~4e:$4~72:S~ e. 1-28-~. 04%55P P,e3 VII. E~mic ~.~t ~ ~n~~ impm~en~' '." supplement] s~¢~' sc~ccs (supplemen~l ~. ~ces for ~e ]mprov~ent of the di~c~ including public ~ ~d sec~ s,~s); &"' supplemental business-related'services (supplemental business-related services for the improvemen! of the district, including advertising and business recruitment and '.. 'development) ~ ' ' The nine steps involved in creating a public improvement district are as follows: Step 1. The clt~ or a group of the affected property o~ners must initiate a petition tha~ calls for a defined area of the city to be declared a public improvement district.G" The pe~itioll must star. e:m 1) the general nature of the proposed improvements; 2) the estimated cost of the improvements; 3) the boundaries of the improvements: 4) the proposed method of assessment, v,~Jch may specify included or excluded classes of. assessable property; '. 5) the propo~d apportionment of costs between the public improvement district and the munieipalit7 as a whole; 6) whether the district will be managed by the municipality, by the private sector, or by a partnership of the two; 7) that the. persons signing the petition request or concur with the establishment of the 8) that an adviso~ board may bc established to develop and recommend an improvement plan to thc governlng body pfthc munlcip .ality~ The l~fition is sufficient if it meets two conditions. First, it must be signed bl' oWners of more than 50 per~ent of the taxable real property value that ~ subject to as~'~srnent under the propotad. Second, the petition must also include sig~atmgs from nog titan 50 p~c, ent of the nmnbgr of taxa' '~. prolx'rty owners who would be ~-sessecl, or include signatures from owners of more limn 50 per~ ofthe surface area to be assessed under the proposal. 0.1-28-99 ,04zSSP P.04 Step 2. After receiving a petition to establish a publie improvement district, the governing body of the cily may appoint an advisory board to develop an' improvement pla~ for the PID.s'3 Texas statut.~ dq. not provide .a set number ofmember~ for the advisory board. The membership on '-'i i!{e bgard,.h .oweyer, must be sUfficicat [o m~ v, vo ,;~ he'ia. First, it mus~ bi'composed 0fta-xable teal l~ope~ owners who represent more than 50 ~z~'m o£the appraised value of'taxable real property fl,at is subject to assessment. Second, this board must include representation by more than 50 percent of the property owners who would be liable for assessment, or include more than 50 percent of the owners of taxable surface area under the proposed plan. Upon initiation of the PID by petition, the governing body of the city should prepare a report on whether file improvements are feasible and whether thc plan should be au~;mented by other authorized in~rovcmcnts? Thc feasibility report may be conducted using thc services of municipal employees or oumide consullants. Thc purpose of thc repor~ is to determine whether a~ hTll)iovement should be made as proposed by the petition, or in combination whh other improvements authorized ~mtt~ Chapter 372 of the Local Government Code. Step 3. A public hearing on the advisabilily of the improvements must be conducted after meeting statutory notice requ!rements,sts ARez the feasibility study is ComPleted, a public heating'must be held by the governing body of the city to daerminc thc advisability of thc proposed improvements. Notice of the public hearing must b~ published in a n~wspap~r of g~ncral circulation in the municipality more ~han ! 5 days prior to the dale of the hearing. Additionally, notice of the PID must be mailed more than 15 days prior to date of the hearing to the owners of property within the proposed PID. The notice must contain the following information: 1) ~he time and place ofth~ hearing; · 2) the general natme of the proposed improvements; 3) the estimated cost ofthe impmvemems; . . 4) the boundaries °fthe Proposed district; " 5) the proposed rn~thod of assessment; and 6) the proposed apporgonment of cost between the improvement dislzict and the municipality as a whole. F~X HO,I 940:349?239 ~.1-28-99 ~4155P ¥11. Economi¢:.DeVe~,opment Through Inf~~ Imp~ments . ~e m~cip~i~- m~t ~c ~md~gs ~g~d~ items 2) ~oug~ 6) by re~lution ~m i~ommtion gathe~d ~ thc public he~ug. Addidonally. the m~icipaliw~ m~ ~ndings (~' re~lution) reg~d~g ~e advi~bili~ of thc propos~ improvement. Step 4. ]*he governing body of the city must adopt a resolution by majority · VOte amhorizingthecreation o! a PiD.S,,e ...* The authorization of the PID must be done within six months of the public hearing on thc I~ID. The authori~tion is effective once notice of thc resolution .is published in a newspaper of general circulation in thc rnunicipallty. If any pan of thc improvement district is located in the exwatcrtitorial jurisdiction (El'J-) of thc municipality, thc notice must also be published once in a newspaper of general circulation in die ci~"s ETJ. Step 5. Twenty days after authorization of the PID, the city may be~in construction of the improvements,s:7 Cor~U~'tion rnay not begin, however, if within the 20 day-period a protest petition is filed. Such a petidon mus~ be signed by owners reprcseming at least two-thirds of the moblc surface area of the district or by ~o-thirds otall the land owners in the rivulet. In response, thc gov~rring body of the dty may choose to assess only pan or none oldie area of the districcm The area to be assessed may not, iR any case, be increaSed beyond the boundaries described in the oriEina! notices unlcss an additional' notice and public he. ring arc provided?~ ' ' ' Step 6. A five-year on.going service and assessment plan must be developed.~° The service and assessment plan must define thc annual indebtedness and projected costs of thc improvements for the PID. The plan must ~dso be reviewed and updated annually for purposes of determining an an~.ual budget for thc PID. Thc plan may be p~pared by die municipality or by the PI/) advisory board~ if onejs appointed. In addition, the governing body of~hc city must prepare an assessment plan? The assessment plan must pro¥ide that at lea.sl ten percent of thc ¢os~ of the. improvemenls is. cOvered by assessments against taxable properly within the PID. Assessments must be baSed upon the special benefits that accrue lo the property because of an improvement.~' Costs may be assessed in any mantlet tha~ results in equal shares oflhe cost being absorbed by similarly, benefitted properties within ~ PID. Asses~enr, s may be adjusted annually upon review ofthe service plan. The city is responsible for .*FROH~ ED~COD .,~l:lX HO,t 940349?239 .01-28-99 , , ~ VII, Economic De~elo..p.~ent. Thrmagh InfrastmcturaJ Improvements payment of azsessments against exempt municipal property w~thi~.flae districcz~a Payment of assessments by other tax exempt jurisdictions must be established by ~ntract. 8rep 7. The c~y must provide notice and a hearing to determine the total cest of the improvements and to prepare an assessment roll?~ A copy Of thc pWpoicd a~sesSment roll mu~t be filed ~ith the city secretary. NOtice of tl{e'Public heating onthe roll must bc mailed to affected property owners, The notice must also be published in the newspaper in the same manner that notice was given for the creation of the PID, except that at least ten days' notice must be provided. An additional statement must be included in this notice that written or oral objections will be co~idered at thc public hearing. At thc public hearing, the governing body must hear and rule on any objections that ate raised? 04:$6P P,06 Step 8. After all the objections have been heard and considered, the governing body may levy, by ordinance the special assessment against the taxable properties within the distriL'Cs2~ The ordinance must include the method of payment and may provide for installment payments to meet annual costs and retire any indebtedness for the improvements within the district. Thc as.s~cnt is a first and prior lien against thc property, superior to all other liens and claims except liens for state, County, school district, or city ad valorem taxes?, 'I~c'costs of thc improvements called for under the district may bc paid from availablc gcncral thnds of the municipality, any special assessments levied, and from pwceeds of the sale of general obligation bonds and related revenue bonds, temporary notes, and dine v,~rrants,s~ Step 9. The governing body may make additional assessments ~inst property wilhin lhe district to correct omissions or mistakes regardin~ the costs o! the imprdvements?9 Before such an additional assessment may be assessed, the city mu~t provide the ~me xype of notice and public hearing that was required for the original azs.essrnent. A public improvement district may also be dissolved after pub~ic n°tice and a Public hearing has been hekL~n The notice and heating requirements are the same as those ~,ClUired to cie. ate a PID. A petition requesting dissolution must be filed with the city secretary and must contain the signatures of at least the same number of ptopeWj owners required to create the PID. If the district is dissolved. it stays in effect until it has paid off any indebtedness thai remains for the improvements. Public Improvement District Assess~a~ht Act Texas Local Government Code Chapter 372 372.05 Petition (a) A petition for the establishment of a public improvement district must state: (1) the general nature of the proposed improvement; (2) the estimated cost of the improvement; (3) the boundaries of the proposed assessment district; (4) the proposed method of assessment, which may specify included or excluded classes of assessable property; (5) the proposed apportionment of cost between the public improvement district and the municipality as a whole; (6) whether the management of the district is to be by the municipality, private sector, or a partnership between the municipality and the private sector; (7) that the persons signing the petition request or concur with the establishment of the district; and (8) that an advisory body may be established to develop and recommend an improvement plan to the governing body of the municipality. (b) The petition is sufficient if signed by: (1) owners of taxable real property representing more than 50 percent of the appraised value of taxable real property liable for assessment under the proposal, as determined by the current roll of the appraisal district in which the property is located; and (2) record owners of real property liable for assessment under the proposal who: (A) constitute more than 50 percent of all record owners of property that is liable for assessment under the proposal; or (B) own taxable real property that constitutes more than 50 percent of the area of all taxable real property that is liable for assessment under the proposal. (c) The petition may be filed with the municipal secretary or other officer performing the functions of the municipal secretary. These are the requirements to develop a Public Improvement District as stated in the Texas Local Government Code, more information from this sub-chapter is available upon request. -9- -lO- AGENDA INFORMATION SHEET Agenda No, Agenda Item ( AGENDA DATE: DEPARTMENT: ACM: April 25, 2000 Parks and Recre~ti~,,n Depmtment Dave Hill '~ SUBJECT: Receive a report, hold a discussion and give staff direction regarding the adoption of a new master plan for North Lakes Park. BACKGROUND: In 1974, North Lakes Park was acquired for flood protection and recreational facilities. The first recreational facilities were developed in the park between 1978 to 1979 with a 1976 bond issue. The first projects included two baseball fields, playground and picnic area, tennis courts, and the North Lakes Recreation Center. In 1990 the park's master plan was updated, resulting in the development of four additional softball fields, a 10 field soccer complex, parking areas, picnic shelter and playground facilities, fishing pier, and over one mile of hard-surfaced walking trails. Most recently, the North Lakes Recreation Center was expanded as well as a disc golf course and the golf driving range re-opened. Several factors now require a new master plan for this park. First, the 1996 and 2000 bond programs include funds for improvements in excess of one million dollars for new facilities. Secondly, there has been growing concern fi:om the adjacent neighborhoods, sports groups and park visitors, regarding the growth in popularity and activity in recent years. During the planning process, several meetings were held with stakeholders to define issues/problems and potential solutions to be addressed. Significant issues raised at the meetings included the management of parking and vehicle traffic without negatively affecting adjacent neighborhoods: accommodating growth in soccer activities; managing conflicting uses; the need for beautification; the need for better use and management of the lakes. (Exhibit A). A total of 104 citizens attended three meetings on October 6, November 23 and March 2. The proposed 2000 update of the North Lakes Master plan (Exhibit B) incorporates the existing facilities and lays plans for future developments in an orderly manner that is consistent with Denton's growth, neighborhood compatibilities and the citizen's desires for new recreational facilities. The updated plan provides for future expansion of the athletic field areas with 3 new football fields, relocation of a football Rugby field, more parking areas, new rest room/ concession facilities, trail extensions, as well as new entrance/exit roads to the existing parking lots. Efforts have been made to lower the -1- traffic impact to adjacent neighborhoods while accommodating the increased demand on the park. Beautification and additional landscaping are planned at the park entrances, along thoroughfares, and at major intersections within the park. OPTIONS: · Direct staff to prepare a resolution supporting the new North Lakes Park Master Plan as presented and recommended by the Park and Recreation Board. · Direct staff to consider additional modifications to the proposed master plan and re-submit it to the Park and Recreation Board and to Council. RECOMMENDATION: It is recommended that the City Council direct staff to prepare a resolution supporting the 2000 North Lakes Park Master Plan. ESTIMATED SCHEDULE OF PROJECT: Adoption by the City Council will complete the North Lakes Master Plan. Design of improvements funded through the CIP will begin this spring. PRIOR ACTION/REVIEW: On March 23~t, the Parks and Recreation Board voted to recommend the plan the City Council for its approval (Exhibit C). FISCAL INFORMATION: This action will require no expenditures. Bond funds have already been allocated for the costs of planning and constructing the next phase of improvements. Future improvements will require additional funding. EXHIBITS: · Exhibit A--Public Meeting Notes · Exhibit B New North Lakes Plan · Exhibit C Minutes from the March 23, 2000 Parks and Recreation Board meeting Respectfully submitted: Ed Hodney, Directo~ Parks and Recreation Department F:~admin\City Council~Xtold a discussion to adopt a new North Lakes Park Master Plan agenda item4-25-00.doc -2- North Lakes Park Master Plan Meeting October 6, 1999 Judy Holt Joyce Poole Shey Darby Bill Williamson Bill McMurtry Dean Hulsey D. F and Pat Cozley Paul King David Salmon Jane Malone Jay Meux Jeanne Jacobs David Selwood Agnes Rogers Gail & Glen Bisset Douglas Steele Dylan Bath Emma & Nona Barthold Tom Edmundson Amber Bonduris Butch Shelley John Hicks Bob Castleberry Michael Strange Bill & Susannah Tumey Norma Gamble Jane McBride Mike Mizell Ray Twehous Helen Kearby Sarah LaGrone John Noab Danny Volgamore Jim Engelbrecht Mike Cochran Trent Brooks Tom Woods 2520 Bowling Green 3021 Bonnie Brae 2208 Crestmeadow 3321 Westgate 1212 Meadow Ridge 1215 Meadow Ridge 1214 Meadow Ridge 3112 Donna Rd. Engineering Dept 1311 Kendolph 1900 Georgetown 2019 Georgetown P.O. Box 1193 2324 Georgetown 2225 Georgetown 1410 Auburn Dr. 1905 Comell Ln. 2312 Brooklake 2228 Crestmeadow 2114 Georgetown 117 Shadow Wood 3011 Thunderbird 627 Grove St 1805 Redwood 1924 North Lakes Trail P.O. Box 1441 2305 Bowling Green 800 Edgewood 607 Magnolia 601 Magnolia 529 Magnolia 213 Lakeside Dr. 293 Casie Ct. 2305 North Lakes Trail 610 W. Oak Police Police 387-7220 382-9662 382-9639 387-4976 382-1213 382-5526 382-7215 383-1625 382-3984 566-0309 382-0009 243-5229 387-7696 566-1008 565-0409 383-0729 383-1194 387-3690 484-4298 484-9492 or 240-0041 382-4183 382-8995 243-0562 484-2772 387-8667 382-8557 320-6363 387-7104 320-6363 321-1895 382-0747 565-1009 387-0995 349-8181 349-7988 Ed, Janet, Bob, Janic, Kathy Mosby, Cathy Avery, Kristic Peters \\CC-PARKSkVOLI\adminkNL Park Master Plan,North Lakes Park Meeting 10-6-99.doc -3- North Lakes Park Master Plan Meeting October 6, 1999 1. Parking - Problems with parking at 4-plex. Maybe add parking to front of 4-plex. Maybe a road off Windsor to back of soccer lot. 2. Jim Engelbreeht said North Lakes neighborhood will fight a connection road to soccer parking. 3. Put trees and screening on parking lots. 4. Put road humps on Windsor to discourage use of Bonnie Brae entrance. 5. Soccer parking lot not adequate on game days. Soccer plays weekday as well as Saturday. 6. Complaint of lights shining in homes late at night. No more soccer or football fields. 7. Doesn't want organized soccer practice at Bowling Green. Signage saying not to play soccer in area. Does not want too many trees to block view. Plant trees in open space to discourage soccer practice. 8. Side walk between Parkside to Bonnie Brae along Windsor. 9. Bring an access off US Hwy 77 into park. 10. Clean out lakes; deepen for better fishing, put in weed eating fish. 11. Put in soft surface trails in place of concrete. 12. Biggest single problem is Windsor Rd. Build road around north perimeter. 13. Wants trail paved for access for all people. 14. Guidelines developed to direct people to proper parking, signs, etc. 15. Bad playground equipment, replace ASAP. 16. Where are the football fields going? 17. More sidewalks to accommodate roller bladders. 18. No more curb cuts on Windsor. Fix parking and a great deal of problems will go away. 19. Reduce activities late night or after 10:00 p.m. 20. Add shrubbery around golf building, keep equipment out of sight. 21. Rugby would like a dedicated field with lights if current field is eliminated. 22. We need more aesthetic details of landscaping, pull buildings' architectural difference together. 23. Keep southern park of park passive soft trails. No active activities no curb gutters keep natural prairie like. 24. Problems in south park of park with four-wheel drive. Close at 10:00 p.m. Keep them on roadways. 25. Plant wildflowers on front side of dam. 26. Model airplane field sometimes noisy. 27. City needs another swimming pool. Why can't we use YMCA Pool? 28. No further development, leave natural. 29. Upgrade lighting on softball fields. 30. Keep model airplane field. It is getting unique. 31. Screen recycle facility or remove it. Others want it kept. 32. Wants more tennis courts for more competitive games. Where would they park? 33. Upgrade facilities so out of town people will come for tournaments. Tourists spend money and leave. 34. Put trees on plan for a purpose. Shade. 35. Security lights in parking lots. -4- North Lake Park Plan Meetin~ NKITle 11-23-99 6:30 p.m. Address Jayne A. Pesh Jim Engelbrecht Dale Conway Nancy Griffin Orrie & Carrall Trail 3021 N. Bonnie Brae 2305 North Lake Trail 2409 Bowling. Green 2035 Malone 2304 North Lake Trail Les Long Judy Holt H.A. Turney Sam Scoggin.~ Cathy Avery Douglas Steele Jane Malone Bill Turney Joel Hays Agnes Rogers Jane McBride Cai Loc Louise Massey Susie Meeker Butch Shelley Bob Castlebe~y Michael Strange Rt. 1 Lot 51M 2520 Bowling Green 2030 Georgetown 1105 Sandpiper 800 Hercules 1410 Auburn Drive 1311 Kendolph 1924 North Lake Trail 2509 E. Windsor 2324 Georgetown 2305 Bowling Green 2309 Bowling Green 2217 Bowling Green 2104 Bowling Green 3100 Jim Christol 627 Grove 1805 Redwood Place Phone 382-9662 565-1009 382-7516 387-3363 565-1336 380-4097 387-7220 382-6834 565-1230 382-3392 565-0409 382-3984 484-2772 381-2200 387-7696 387-8667 566-1642 382-6601 387-0165 484-9492 382-8995 243-0562 -5- Name North Lake Park Plan Meetin~ 3-2-00 6:30 p.m. Address Earl Burton Brace McSween Alan Cheatham Danny Volgamore Dale Phillips Kim Mangum Bill/Susannah Turney 2609 Coffey Drive 3103 Brookview 4000 Ace Lane #278 293 Casie Court 2201 Kingston Trace 3619 Kings Court 1924 North Lake Trail H A Turney Louise Massey JeffLoch Kristie Peters Amber Pride Richard Gunlock Sam Scoggins Jane Malone Paul Hinaon, Jr. Les Long Jerry Powers Ray Twehous Jim / Joy Sibley Bob Castleberry Ed Wunder Erich Wunder Gordon Sonmezler Michael C. Woodby Ken Bacon Butch Shelly Lt. Tom Woods Trent Brooks Bob Tiekner Ed Hodney Janet Simpson 2030 Georgetown 2217 Bowling Green DYFA PARD Staff 3900 Teasley Lane #222 2117 North Lake Trail 1105 Sandpiper 1311 Kendolph Drive Route 2, Box 523A Route 1, Lot 51M Couch Road 607 Magnolia 1921 North Lake Trail 627 Grove Street 1006 Country Club Road 1006 Country Club Road 1106 E. Jeter Road 1911 Sena Street 2304 Parkside Drive 3100 Jim Christol Denton PD Denton PD PARD Staff PARD Staff PARD Staff Phone 566-5207 321-5452 972-315-0248 382-0747 387-2715 387-4065 484-2772 382-6834 382-6601 321-3625 349-8385 380-7799 382-6373 565-1230 382-3984 382-1533 380-4097 391-8282 382-8826 382-7802 382-8995 240-1258 240-1258 817-491-4073 387-3111 387-0839 390-2792 349-7988 349-8181 349-8275 349-8271 349-8274 -6- I~IASTER PLAN · I)ENTON NORTH LAKES PARK -7- Denton Parks and Recreation Board March 23, 2000 Senior Center EXHIBIT Members present: Don Edwards, Dalton Gregory, Teresa Andress, Brandon Barnes, Dale Yeatts, Gwendolyn Carter Members absent: Brenda Phillips (excused out of country on business) Staff present: Ed Hodney, Janet Simpson, Bob Tickner, Kathy Mosby, Jeff Gilbert, Paula Yosten, Shane Landers Chahman Don Edwards called the meeting to order at 6:00pm. Jeff Gilbert was called upon to introduce Paula Yosten, a new staff member at the Senior Center. Janet Simpson then introduced Shane Landers, Supervisor over the Landscape Maintenance unit. The board members welcomed these new employees. The minutes of the March 23, 2000 board meeting were approved as submitted. ACTION ITEMS Review and consider approval of the North Lakes Master Plan. Bob Tickner presented the new North Lakes Master Plan. Bob briefly reviewed the reasons for developing the new plan: planned capital improvements, increased use of the park, neighborhood concerns. He described the public process by which the plan was developed, including the participation of more than 100 citizens in identifying issues and suggesting solutions for consideration. At the last meeting with citizens on March 2aa, attendees supported the plan without objection. After several questions from the board, Dale Yeatts moved to approve the plan. Teresa An&ess seconded. Motion approved unanimously. -8- AGENDA INFORMATION SHEET Agenda No._ Agenda Item Date_ AGENDA DATE: DEPARTMENT: ACM: April 25, 2000 Parks and Recrea~~ Dave Hill .f/"q-4, SUBJECT: Receive a report, hold a discussion and give staff direction regarding the adoption of a Parks, Recreation and Open Space Plan, with a Pedestrian and Bicycle Mobility element. BACKGROUND: In September 1999, the City Council approved a contract with Carter-Burgess, Inc. (CB) to draft a new master plan to guide the provision of new parks, recreation facilities and open spaces. Also included in the CB scope of services was the development of a mobility plan that would recommend routes for pedestrian and bicycle paths. In addition to providing recommendations for recreational and pathway improvements, this plan will also qualify the City for matching grant funds from the Texas Recreation and Parks Fund, administered by the Texas Parks and Wildlife Department. A preliminary draft of the plan is included in your back-up materials. The plan includes the following elements: · Inventory of existing parks, open spaces, recreational facilities (including DISD campuses) and recreation programs. · Standards for park acreage and recreation facilities, adopted in the Denton Plan. · Needs assessment, based on citizen input obtained through the May 1999 M.A.R.C. telephone survey, the Denton Plan process, the work of the 2000 · Blue Ribbon Committee and other sources. · Prioritized recommendations, derived through a weighted scoring system. This section also includes an estimate of expenditures for each of the recommended facilities. · The Implementation section addresses potential fimding and other strategies to fulfill a Five-Year ~lction Plan. As mentioned previously, the plan relies heavily on considerable public input. The M.A.R.C. study of parks and recreation needs was based on a random sample telephone survey that resulted in 401 completed responses. In excess of 300 additional suggestions were gathered by the 2000 Blue Ribbon Committee, from which were formed the committee's recommendations for the recently approved CIP. The recommendations from both of these efforta were remarkably similar. Finally, two public meetings were held early in the development of this plan, attended by 18 citizens. The plan's prioritized recommendations were established by a scoring system that gave the greatest weight to projects selected by citizens in the needs assessment phase. The Parks and Recreation Board, City staff and the consultant participated in the scoring process. Projects given "High" and "Moderate" ranking in the Plan include: · Outdoor family aquatic center · Hike/bike trails · Nature trails · Teen center · Indoor swimming · Senior center · Skate park/in-line hockey · Recreation center · Soccer, softball and baseball fields · Fitness center · Golf course The next step is to review the draft Parks, Recreation and Open Space Plan with the Parks and Recreation Board, and then hold one or more public meetings. We felt that the Council might be interested in reviewing a draft of the new plan before the final public review phase begins. RECOMMENDATION: Staff requests that the Council direct staff to proceed with the final public review of the draft plan, and then bring a final plan back for adoption at a future City Council meeting. OPTIONS: Council may request modifications to the plan and/or the planning process. ESTIMATED SCHEDULE OF PROJECT: The draft plan will next be presented to the Parks and Recreation Board on April 27th, and then at an open public forum in May. Final adoption by the City Council is tentatively scheduled in June. PRIOR ACTION/REVIEW: None FISCAL INFORMATION: No funding is required at this time. EXHIBITS: Exhibit A--New Master Plan Respectfully submitted: Ed H~odneJy, ES~/par~/~, st~ s and Recreation 2000 DENTON CITYWIDE PARKS MASTER PLAN AND PEDESTRIAN & BICYLE LINKAGES PLAN DRAFT MASTER PLAN City of Denton, Texas April 2000 Prepared By: Carter. Burgess Consultants in Planning, Engineering, Archiledure, Construction Management, and Related Services Copyright 2000 by Carter & Burgess, Inc. Parks & Recreation Department Ed Hodney - Parks and Recreation Director Janet Simpson - Assistant Director Bob Tickner - Superintendent Planning and Construction Kathy Mosby - Superintendent of Leisure Services Cathy Avery - Athletics / Aquatics Manager Amanda Green - Recreation Centers Manager Teresa Salazar - Special Events Manager Kathy Shaeffer - Youth Services Manager Emerson Vorel - Park Operations Manager Lorraine McGregor- Public Information Specialist Carter & Bur_qess, Inc. Dennis Jerke, ASLA, Principal-In-Charge Philip Neeley, ASLA, PiannedLandscape Architect/Quality Assurance Julia A. Perkins, RLA, Planner/Landscape Architect/Project Manager James Kindred, CADD Support Denise Shelton, Administrative Assistant ~ENRICHIN6dVES April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Table of Contents III. IV. Pa.qe Executive Summary ......................................................................................................... ~" Introduction ............................................................. .16 Purpose ......................................................................................................................... 22'1p Goals and Strategies ............................................................... ...................................... Use of Master Plan ........................................................................................................ 2.4 Methodology .................................................................................................................. 25 Elements of the Park Master Plan .................................................................................. 25 Planning Process Diagram ............................................................................................ 26 Inventory ............................................................... 29 Summary Inventory Table .............................................................................................. 85 Joint Use Facilities ......................................................................................................... 88 Recreation Programs ..................................................................................................... 93 Sports Programs .......................................................................................................... i'D9'~ Denton Population Estimates ....................................................................................... Standards and Guidelines ........................................................................................... .102 Park Classification System .......................................................................................... .102 Park Acreage Standards...; .......................................................................................... .104 Comparison of Park Land Acreage and Denton Standards .......................................... .105 Comparison of Facility Development and Denton Standards ....................................... .110 Needs Assessment ...................................................................................................... :lJ 2 Recommendations/Priorities for Master Plan ................................................................ 127 Summary of Priority Items ........................................................................................... .127 Recommendations for Land Acquisition ....................................................................... .1.29 Recommendations for Facility Improvements ............................................................... 131 Expenditure Analysis ................................................................................................... :t34 iii April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan VIII. Implementation ....... i .......................................... ....1.38 IX. .... .138 Policies and Ordinances .......................................................................................... Funding Sources .......................................................................................................... %40 Five Year Action Plan .................................................................................................. .!..44 Plan Update and Refinement ........................................................................................ 1,50 Denton Pedestrian & Bicycle Linkages Plan ................................................................ 152 Xo Appendix ..................................................................................................................... .160 A. City of Denton Landscape Ordinance B. City of Denton Park Dedication Ordinance iv April 2000 (Draft) [ ~(~"i. ~'r~ ~] ,m =~.',1 z~ ~ ~-$'~ 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan List of Illustrations Regional Location Map ............................................................................................................. 2.0 Existing City Parks .................................................................................................................... 9~) Existing Municipal Facilities Map ............................................................................................... 9.1 Existing Schools ........................................................................................................................ 92 Existing Neighborhood Park Service Areas ............................................................................. .1.08 Existing Community Park Service Areas .................................................................................. 1.09 Denton Sub Areas Map ........................................................................................................... 126 Five Year Action Plan Map ...................................................................................................... .1.51 Sidewalk Sketches .................................................................................................................. .156 Bike Route Sketches ............................................................................................................... .157 Greenway Sketches ................................................................................................................ .158 Pedestrian & Bicycle Linkages Plan ........................................................................................ .159 I ENRICHIN6 LIVES April 2000 (Draft) [--7~-i.,fri~ ~ .~ ;t,J z~[~-~ 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan I. Executive Summary Purpose of the Plan Attractive, safe and well-maintained public parks,open spaces and recreation facilities are essential elements of Denton's image and quality of life. If strategically placed and equitably distributed, they can provide a wide array of opportunities for both individual and community enrichment. In addi~n, parks and open spaces may serve to protect environmentally sensitive lands from the potentially harmful effects of urban development, while preserving the recreation and transportation benefits these lands may offer. Parks and open spaces are places to play, to relax, to enjoy the natural environment, to connect socially with others in the community. They can define a neighborhood and provide a cultural and historical focal point. If properly designed and maintained, parks can enhance the economic value of nearby propertiesl Linear open spaces can be used to knit together neighborhoods with other important elements of the urban fabric, including schools, government service centers and commercial developments. Such lands can also serve as an effective buffer between incompatible land uses. In short, public parks and open spaces help to protect the social, economic and aesthetic qualities that Denton values. In order to preserve these qualities, the City will continue to expand its award- winning parks system as the community grows. (Denton Comprehensive Plan 1999-2020) With this goal in mind, the city selected the consultant team of Carter & Burgess, Inc. to prepare a Comprehensive Parks, Recreation and Open Space Master Plan through an interactive process involving a Steering Committee, the City Parks and Recreation Department, and the citizens of Denton. The purpose of the Master Plan is to: A. Provide the framework for orderly and consistent planning and development. Provide detailed research and facts concerning the community and the roles of parks and recreation. Co Establish priorities and .statements of direction based on researched and documented facts and a community based needs analysis. NRICHIN6 LIV 5 April 2000 (Draft) Z000 Denton CJtywide Parks Master Plan and Pedestrian & Bi(;;ygle LinkaBes Plan Provide direction in the area of acquisition and development of park land to meet future needs. Conform to the preparation suggestions and/or guidelines for local Park, Recreation and Open Space Master Plans, prepared by the Texas Parks and Wildlife Department for Texas Recreation and Parks Account local park grant program. This document outlines the methods, results and recommendations of the Master Plan study and is intended to be used as a guide for future Park, Recreation and Open Space development within the City of Denton through the early part of the 21 st century. Goals And Strategies With these purposes in mind, the 2000 Denton Comprehensive Parks, Recreation and Open Space Master Plan was commissioned. Below are the goals and strategies for the Park System as outlined by the Denton Parks and Recreation Department: A. DISTRIBUTION OF PARKS 1. Goal a. Ensure the adequate and equitable distribution of parks, open space and b. recreation facilities. 2. Strategies a. Complete a new Parks, Recreation and Open Spaces Master Plan that addresses public needs in all park and open space categories and meets the City's objectives for urban design, multi-modal transportation, drainage and environmental conservation objectives. b. In accordance with adopted service standards for each park category, acquire and maintain sufficient land to keep pace with Denton's population. c. Develop, fund and implement future capital improvements programs consistent with the Parks, Recreation and Open Spaces Master Plan. ENRICHINGi. IvEs 2 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan B. PARK AND OPEN SPACE ACQUISITION 1. Goal a. Achieve urban design, transportation, drainage and environmental conservation objectives through park and open space acquisition. 2. Strategies a. Identify land and/or easements necessary to establish a unified greenbelt system that achieves recreation and transportation system objectives. b. Identify significant scenic, historical and environmentally sensitive lands, and determine strategies to preserve them. C. FINANCIAL EFFECTIVENESS 1. Goal a. Ensure the cost-effective provision of parks, open space and recreation facilities. 2. Strategies a. Working with other City departments, area school districts and developers, identify opportunities for clustering multiple public functions with parks and recreation facilities into neighborhood service centers. Develop appropriate planning policies, development regulations and implementation strategies. b. Research the need for and feasibility of developing specialized parks and recreation facilities that can function as profit centers, which reduce the dependency on property tax revenue and generate profits to underwrite other recreation facilities and services. D. RESPONSIVENESS 1. Goal a. Ensure that future parks and recreation improvements are responsive to the changing needs of Denton's citizens. Ei6NRICHINGLIV S April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Strategies a. Periodically survey the wants and needs of Denton's citizens for their parks and recreation system; incorporate this information into revisions of the Strategic Plan, Annual Action Plans and updates of the Parks and Recreation Master Plan. b. Update the Parks, Recreation and Open Space Plan at least once each 5 years. To ensure that these goals and strategies were met, a Steering Committee was assembled at the beginning of the project to monitor the Master Plan process throughout the study. This Committee helped facilitate communication between public officials, City staff, the Park Board, the School Districts, and the citizens of Denton. The Master Plan is a result of a collaborative team effort between the Citizens of Denton, Carter & Burgess, Inc., the Steering Committee, the Parks and Recreation Board, and the City Parks and Recreation staff. Planning Process Diagram This Master Plan process is a continuous one which requires evaluation by the Parks and Recreation Department and the City Council. Every five years the Plan should be updated to provide current priorities, action plans, and budget estimates for implementation. The following pages illustrate the planning process for the Park Master Plan. t 6NRJCHINGLIWS April 2000 (Draft) ZOO0 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Planning Process PHASE 1 Inventory/Market Analysis A. Base Map Preparation Preparation of a computer generated base map B. Inventory / Supply Analysis 1. Public parks and recreation areas owned by the City. 2. Joint use facilities with Denton Independent School District. 3. Sites for preservation or conservation of natural area. 4. Existing recreation programs offered by the City. · Number of teams and children participating · Facilities utilized by each Association 5. Existing non-City Sponsored Recreation Sports Associations and Organizations · Number of teams and individuals participating in each association · Facilities utilized by each association C. Population Analysis 1. Population concentrating on the factors of growth, distribution, and projected changes. D. Standard Analysis 1. Determine park standards and classifications which will apply to Denton community. 2. Compare existing facilities to Denton's standards to determine the amounts of facilities and park acres needed to meet the needs of the community. 3. Evaluate existing resources of the community for open space, greenbelt linkages, parks and recreation facilities, based upon user participation. t ENRICHIN6 LIvEs April 2000 (Draft) 2000 Denton Citywide Parks Ma~ter Plan and Pedestrian & Bicycle Linkages Plan PHASE2 Demand Analysis and Needs Assessment Review previous public input pedaining to parks, recreation, open space and trails. Summarize needs assessment information. Evaluate expressed citizen needs versus available facilities. Priority Analysis 1. Complete point analysis. 2. Complete priority ranking system. Action Plan 1. Develop a definitive program(s) for acquisition and development of park land to meet future needs. 2. Develop planning maps coordinated with Denton Planning and Zoning, Economic Development, Parks and Recreation, and overall City Comprehensive Plan. 3. Review existing ordinances and provide recommendations to implement the Action Plan. Expenditure Analysis 1. Complete the expenditure analysis. 2. Complete the chart of potential grant opportunities and funding sources. 3. Prepare a five-year action/funding time-line. Parks, Recreation and Open Space Master Plan - Preliminary Master Plan 1. Preparation of conceptual illustrative park master plan graphics. 2. Presentation for the Preliminary Master Plan to City Staff and Steering Committee for approval. Parks, Recreation and Open Space Master Plan - Final Master Plan 1. Preparation of final narrative and color CADD exhibits/maps from City review comments. 2. Presentation of Park, Recreation and Open Space Master Plan to Denton. April 2000 (Draft) [ -//--i?¢'1'] z~] ,1~ :l,! ,[~ z~l 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Recommendations for Land Acquisition One of the stated goals of the Denton Parks and Recreation Department is to ensure the equitable distribution of parks, open space and recreation facilities. Only through new acquisition and development will the City be able to keep pace with the growing population of Denton. During the needs assessment phase, the Parks/Recreation/Beautification/Arts Committee included land acquisition and a budget estimate in their development priorities. Acquisition was targeted for rapid growth areas in far south and far east Denton. The City of Denton owns 1001.35 acres of land, as of January 2000. As compared to Denton's adopted standards and guidelines, and with a current population of 77,300, the city has a shortfall in the community park category, with a surplus in the Neighborhood and Citywide Parks category. Based on the Park Classification System (page 102), the City specifically needs to acquire the following acreages to meet the current population needs of Denton. YEAR 2000 Neighborhood Park Community Park 156.90 Acres 156.90 Total Land Acquisition (To meet 1999 population of 77,300, see page 107) As the City continues to grow towards its projected 2010 population of 119,250, the shortfall in park land will increase to 650.27 acres. Specifically, the City will need to acquire the following acreages in three (3) of the park categories to meet the projected population needs of Denton. YEAR 2010 Neighborhood Park Community Park Citywide Park 84.77 Acres 282.75 Acres 282.75 Acres 650.27 Total Land Acquisition (To meet 2010 population of 119,250, see page 107) The City of Denton has a Parkland Dedication Ordinance (see appendix B) that requires developers to provide neighborhood park land and fund its initial development. A formula is used to calculate acreage or dollar equivalents that developers must donate to the City when their developments are platted. Because the City will continue to receive park land acres as new residential areas are developed, the need for neighborhood park land sites is not as prevalent. The focus of land acquisition should shift to larger tracts that could accommodate community parks, greenway corridors and natural open spaces. I 6NRICHIN6 LIVES 7 April 2000 (Draft) 2000 Denton Citywida Parks Master Plan and Pedestrian & Bicycle Linkages Plan Land acquisition along the major creek corridors will be important to provide for recreational greenways. Greenway corridors help maintain riparian habitats, reduce the dangers of flooding, and protect the natural environment. Open spaces and natural areas can also become connections from residential neighborhoods to schools, parks, shopping centers, and other destinations. (see Pedestrian and Bicycle Linkages Plan, page 152) The City of Denton should begin to acquire available park land tracts that are 30 acres or larger in size. These lager tracts would meet the primary need of community parks, greenway corridors and natural open spaces. The City should concentrate its efforts to provide more park land and recreation opportunities to current and future residents in the rapidly growing areas of far south and east Denton. The Pedestrian and Bicycle Linkages Plan should be used as a guideline when considering new acquisition and connections to parks, schools, neighborhoods and shopping centers. Recommendations for Facility Improvements Denton Comprehensive Parks, Recreation and Open Space Master Plan A. Hiqh Priority Items Develop an Outdoor Family Aquatic Center on newly acquired Northeast Park property in conjunction with the Denton Independent School District plans for a new natatorium. Provide for new Hike/Bike Trails at existing and new park development, and along major drainage corridors. Include accessible connections to park elements such as playgrounds and pavilions. If parks are large enough, construct loop trails through the park for multi-purpose users. Reference the City wide mobility plan which establishes a hierarchy of trails along existing street corridors to accommodate multiple user groups and link significant destinations. (See Exhibit, page 145.) Develop Nature Trails throughout the city, placing high priority on the preservation and conservation of existing drainage corridors along Hickory Creek, Pecan Creek and Cooper Creek. Provide opportunities for interpretive trails with signage. Continue to develop and expand the trail opportunities at North Lakes Park and South Lakes Park. 4. Depending on programming needs, provide a new Teen Recreation Center centrally located in the community. The Teen Center could provide areas for concessions, EiENP, JCHING LIvE 8 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan games, fitness, pool/ping pong, a computer room, and a video room. It may be possible to combine this facility with Recreation Center recommendations and/or school development. Continue to explore the potential for an Indoor Swimming Pool through a joint-use natatorium with Denton lSD. Explore the possibility of the new outdoor Family Aquatic Center providing a seasonal or permanently enclosed pool area. Provide a new and larger, full service Senior Center Complex centrally located in the community or build a second Senior Center Complex in the south part of the community to expand the recreational potential of the current Senior Center Complex. B. _M.~..d__e_E~t.e__R_r!o_rit_v. Items Provide one or more Skate Park/In-Line Hockey facilities, including a central location for league play and other dispersed practice areas in the community. Develop Recreation Center facilities in growth areas in the north/northeast, far east and far south Denton. May be able to combine facilities with Teen Recreation Center, previously recommended. Pursue joint facility development and use with schools and universities to utilize additional facilities such as gyms and meeting rooms. Continue to renovate and maximize the configuration of Baseball Field layout at Evers Park. Provide new facilities at future Northeast Community Park, and in the far south and far east sectors of the community. Pursue availability of practice fields across the community to offset demands upon competition fields. 10. Provide additional Soccer Fields at future community parks in the northeast, far east and far south portions of the community. Pursue joint-use agreements with Denton lSD and/or other agencies to utilize existing practice areas. Acquire frontage land along Bonnie Brae Road adjacent to North Lakes Park thus expanding soccer complex capabilities. 11. Expand Fitness facilities to new locations, including joint development of new schools and future recreation centers in the northeast, far south and far east portions of the community. ]ENRICHIN6 LIVES April 2000 (Draft) [ -7~L-~'DT3 ~:-] .m :l'J ~ [ ~",-'~ 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan 12. If opportunity develops, pursue a new Golf Course in conjunction with a new mixed use development. 13. Redevelop/renovate existing Softball Fields at North Lakes Park and Denia Park for maximum field layout and league activities. Pursue availability of other practice fields across the community to offset demand upon competition fields. Provide new softball facilities at future community parks in the growing areas of northeast, far east and far south Denton. C. Low Priority Items 14.Provide for Indoor Basketball Courts in conjunction with new recreation center facilities in growth areas of north/northeast, far east and far south Denton. Pursue joint- use facility development with schools and universities to utilize additional gymnasium facilities. 15. Provide Outdoor Basketball Courts at future community parks in the northeast, far east and far south portions of the community. Pursue joint-use agreements with DISD. 16. Work with Denton County and U.S. Army Corp of Engineers to provide and market Equestrian Trail opportunities across the extended Denton County area. Long range planning for greenbelts along Hickory Creek and/or Cooper Creek may provide opportunities for equestrian trail components. 17. Provide additional Outdoor Tennis Courts at futura community parks in the northeast, far east and far south portions of the community. Pursue joint-use agreements with Denton lSD and/or other agencies to utilize existing practice areas. 18. Future recreation centers may provide Indoor Tennis Court opportunities, in conjunction with design and programming of large gymnasiums. 19. Future recreation centers may provide Racquetball Court opportunities, in conjunction with design and programming of large gymnasiums. 10 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan n n Cie- II. Introduction Introduction Denton County is a 900 square mile county situated in the Grand Prairie and East Cross Timbers region of North Central Texas. Denton County was created by Texas Legislature in 1846. The year 1996 marked the 150th anniversary, or Sesquicentennial of Denton County. The original county seat, named Pinckneyville, was located near the center of the present day City of Denton, but the seat of government was moved southward three times before returning to Denton in 1857. Both county and county seat were named after lawyer, preacher, ranger and Indian fighter, John B. Denton, who moved to Texas from Arkansas with his wife. He was killed in 1841 near the south county line in a battle with the Kichai Indians. The first county courthouse was a small log structure built at Alton in the south central part of the county. A county court building built in Denton in 1857 burned in 1875 destroying many records. In 1877, a two-story brick courthouse in the center of the square opened for county business. It was struck by lightning and demolished in 1895. Built between 1895 and 1897, the Denton County Courthouse-on-the-Square served as the seat of Denton County government. The Courthouse-on-the-Square is in Richardsonian Romanesque style. In 1975, most of the county offices moved to the Joseph A. Carroll Courts Building. Twenty years later, in 1998, a new Denton County Courts Building opened to house the county courtroom and most of the county BENRICHING LIw5 16 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan [ --///-~,t?r2 ~.4 .a ;l ,J ,[~ [~-~-~ records-keeping offices. Over the years the Courthouse-on-the-Square had become very deteriorated and so the county approved a bond which paid for the renovation of the Courthouse-on-the-Square in 1985. The building has since been completely renovated and now houses the Denton County Historical Commission and the Denton County Courthouse- on-the-Square Museum on the first floor. The County Commissioners Courtroom is located on the second floor. The Courthouse-on-the-Square still serves as a landmark for the people of Denton and Denton County. The County embarked on a course that would make it a higher education center when it obtained North Texas Normal College (presently the University of North Texas) in 1890 and the College of Industrial Arts (presently Texas Women's University) in 1902. Today the county is a center for higher education and a balanced farming region producing wheat, cotton, beef, and dairy cattle. It contains several growing urban centers, including Denton, Lewisville, Carrollton, and The Colony. The City of Denton, Texas is located approximately 35 miles north of Dallas and Fort Worth at the confluence of Interstate Highway 35E and Interstate Highway 35W. It encompasses 35,675 acres and covers over 55 square miles. As the county seat of government, home to 2 major universities, and in close proximity to DFW International Airport, the City of Denton is a very diverse community. The citizens and their elected officials are working hard to preserve the strong heritage of this unique city. In 1999, the City Council of Denton adopted a vision statement: 17 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Denton is a unique community whose diversity gives it strength. This uniqueness is a point of community pride and it is the goal of the Denton Plan to insure that growth, development and the use of community resources foster, encourage and promote the preservation of this vital quality. Although Denton is no longer a small town, there are certain qualities of small town life that citizens hold dear. The proper stewardship of our community assets,while managing the pressures of growth, is a balancing act that will require foresight, long range planning, and a great amount of community involvement. The Denton Comprehensive Plan should represent the best of our collective community aspirations and, while preparing Denton for the 21s' century, should never lose sight of the fundamental qualities on which this town was built. Quality, diversity, and opportunity are the keys to the future success of our community. People with all kinds of different backgrounds are welcome to Denton, where they will continue to find a community that offers well-paying jobs, reasonably priced housing, good schools and convenient parks, and distinct neighborhoods with homes of all types and sizes to offer a choice of housing for everyone. The historic downtown is the heart of Denton; the Square and surrounding streets are used every day and night as a gathering place for commerce, civic events, and entertainment. Growing numbers of downtown residents will increase the energy level of the downtown, while cultural events in Civic Center Park attract new visitors from throughout the region. The City of Denton is committed to historic preservation as a means of fostering community pride and encouraging one of our strongest assets. To grow properly, Denton must nourish its university partnerships. The University of North Texas is a major Denton landmark. The Fry Street Area and Oak-Hickory Historic District are important physical and social links between the Downtown and UNT. Texas Woman's University will also be a major contributor to Denton's distinction as a City. UNT, TWU, and the square area will continue to develop as dynamic and lively areas, essential to the well being of the City. Working with City government and the business community, the two universities are good institutional citizens of Denton and are magnets for high-tech and research oriented development. The Denton community is committed to enriching the lives of its citizens- regardless of age, income, or ethnic background- through education, culture, recreation, and entertainment. Denton has a distinctive reputation as an arts city, and most especially a music city. Through public art, galleries, museums, theaters and clubs; through our festivals, concerts and stage shows, Denton is known throughout the region as a culturally attractive and innovative community. Public natural areas are an essential part of a great city. Our built environment cannot remain healthy without properly managed land, air and water resources; as we grow these resources will become even more precious. Proper planning will allow us to capitalize on 18 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan ['-7~-~*r/'r3 ~] .~ :l,J ,~ [.~.f.-~ our natural assets. Lake Ray Roberts and the Elm Fork Nature Conservatory will prove to be resources of incredible value, as Denton becomes more urbanized. Floodplains and creeks, when developed as greenway corridors, will serve many needs, such as flood protection, recreation, tree preservation, and habitat support. Environmental planning must take its rightful place as an essential part of Denton's strategy to grow wisely. Denton is strategically situated as a regional transportation hub by its position on Interstate 35 and its proximity to both Alliance and Dallas-Fort Worth regional airports. Managing and fostering this unique geographical position is a major goal of the comprehensive plan as we reap the benefits of our location. Although we are a community that benefits from our various institutions, we should never lose sight of the fact that we are first a community of people: not just a collection of houses, roads and buildings. Our sense of community in Denton is a delicate natural resource: a legacy from the past, which once lost cannot be regained. Therefore, the primary goal of the comprehensive plan should be to preserve and retain the qualities that makes Denton the unique and prosperous place it is today and to help it develop into an even better city in the future. (Denton Comprehensive Plan 1999-2020) 19 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan [--z~'-~.¢'i'~ ~:~ ,~ ~.j ,~ [~-~-~ INSERT REGIONAL LOCATION MAP 20 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Purpose of the Plan Attractive, safe and well-maintained public parks, open spaces and recreation facilities are essential elements of Denton's image and quality of life. If strategically placed and equitably distributed, they can provide a wide array of opportunities for both individual and community enrichment, in addition, parks and open spaces may serve to protect environmentally sensitive lands from the potentially harmful effects of urban development, while preserving the recreation and transportation benefits these lands may offer. Parks and open spaces are places to play, to relax, to enjoy the natural environment, to connect socially with others in the community. They can define a neighborhood and provide a cultural and historical focal point. If properlydesigned and maintained, parks can enhance the economic value of nearby properties. Linear open spaces can be used to knit together neighborhoods with other important elements of the urban fabric, including schools, government service centers and commercial developments. Such lands can also serve as an effective buffer between incompatible land uses. In short, public parks and open spaces help to protect the social, economic and aesthetic qualities that Denton values. In order to preserve these qualities, the City will continue to expand its award- winning parks system as the community grows. (Denton Comprehensive Plan 1999-2020) With this goal in mind, the city selected the consultant team of Carter & Burgess, Inc. to prepare a Comprehensive Parks, Recreation and Open Space Master Plan through an interactive process involving a Steering Committee, the City Parks and Recreation Department, and the citizens of Denton. The purpose of the Master Plan is to: A. Provide the framework for orderly and consistent planning and development. Provide detailed research and facts concerning the community and the roles of parks and recreation. Establish priorities and statements of direction based on researched and documented facts and a community based needs analysis. Provide direction in the area of acquisition and development of park land to meet future needs. E. Conform to the preparation suggestions and/or guidelines for local Park, Recreation and Open Space Master Plans, prepared by the Texas Parks and Wildlife Department for Texas Recreation and Parks Account local park grant program. 6NR HIN6' ES 21 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan [--T;~--~,f':T'~ This document outlines the methods, results and recommendations of the Master Plan study and is intended to be used as a guide for future Park, Recreation and Open Space development within the City of Denton through the early part of the 21 st century. Goals And Strategies With these purposes in mind, the 2000 Denton Comprehensive Parks, Recreation and Open Space Master Plan was commissioned. Below are the goals and strategies for the Park System as outlined by the Denton Parks and Recreation Department: A. DISTRIBUTION OF PARKS 1. Goal Ensure the adequate and equitable distribution of parks, open space and recreation facilities. 2. Strategies ao Complete a new Parks, Recreation and Open Spaces Master Plan that addresses public needs in all park and open space categories and meets the City's objectives for urban design, multi-modal transportation, drainage and environmental conservation objectives. In accordance with adopted service standards for each park category, acquire and maintain sufficient land to keep pace with Denton's population. Develop, fund and implement future capital improvements programs consistent with the Parks, Recreation and Open Spaces Master Plan 22 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan PARK AND OPEN SPACE ACQUISITION 1. Goal Achieve urban design, transportation, drainage and environmental conservation objectives through park and open space acquisition. 2. Strategies Identify land and/or easements necessary to establish a unified greenbelt system that achieves recreation and transportation system objectives. Identify significant scenic, historical and environmentally sensitive lands, and determine strategies to preserve them. C. FINANCIAL EFFECTIVENESS 1. Goal Ensure the cost-effective provision of parks, open space and recreation facilities. 2. Strategies a. Working with other City departments, area school districts and developers, identify opportunities for clustering multiple public functions with parks and recreation facilities into neighborhood service centers. Develop appropriate planning policies, development regulations and implementation strategies. b. Research the need for and feasibility of developing specialized parks and recreation facilities that can function as profit centers, whkh reduce the dependency on property tax revenue and generate profits to underwrite other recreation facilities and services. D. RESPONSIVENESS Goal Ensure that future parks and recreation improvements are responsive to the changing needs of Denton's citizens. 23 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Strategies a. Periodically survey the wants and needs of Denton's citizens for their parks and recreation system; incorporate this information into revisions of the Strategic Plan, Annual Action Plans and updates of the Parks and Recreation Master Plan. b. Update the Parks, Recreation and Open Space Plan at least once each 5 years. To ensure that these goals and strategies were met, a Steering Committee was assembled at the beginning of the project to monitor the Master Plan process throughout the study. This Committee helped facilitate communication between public officials, City staff, the Park Board, the School Districts, and the citizens of Denton. The Master Plan is a result of a collaborative team effort between the Citizens of Denton, Carter & Burgess, Inc., the Steering Committee, the Parks and Recreation Board, and the City Parks and Recreation staff. Use of Master Plan This document includes specific recommendations for future land acquisition, park expansion, and park development to serve the growing population and needs of Denton. Section III of this report includes a complete inventory of existing parks, school facilities currently being used through joint- use agreements, and a list of current sports programs and participation levels. Section IV provides a review of Denton Park Acreage Standards and comparisons to current Denton facilities. Section V documents the results of the needs assessment as provided by the City of Denton. In Section VI, the report identifies the recommended priorities and budget estimates for actual park development. Section VII provides implementation guidelines including policies and ordinances, potential funding sources, and a five-year action plan for implementing the Master Plan. Section VIII provides guidelines and implementation strategies to develop a City-wide pedestrian and bicycle mobility plan. This Master Plan should be the basis for the future development and fiscal planning for the Denton park system for the next five to ten years. Annual reviews of the Master Plan should be performed by the City to ensure that the implementation is on course and addresses any specific changes in priorities and/or needs. 24 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan III. Methodology The Parks, Recreation, and Open Space Master Plan was prepared using atwo phase process. Phase I involved the inventory/supply analysis, standards analysis and the needs assessment, while Phase 2 involved the recommended priorities, budget analysis, funding methods, and action plan. Citizen input is considered one of the primary determinants of the Master Plan recommendations within Phase 2. Elements of the Park Master Plan The process in preparing the Parks, Recreation, and Open Space Master Plan consisted of the following steps: PHASE1 Step 1 - Inventory The first step involved a site tour by Carter & Burgess and City Parks and Recreation Department staff of all existing parks and recreation facilities in Denton. An inventory was prepared based on information provided by the Denton Parks Department of all existing parks owned by the City, all joint-use facilities with Denton Independent School District, and all existing recreation associations and organizations. The existing recreation programs were evaluated by obtaining citizen input from an extensive telephone survey completed in May 1999. No specific recommendations are included for recreation programming within this Master Plan. It is recommended that City staff prepare a comprehensive review of current recreation programming and future demands to ensure that facilities will provide for these needs. ' Step 2 - Standards and Guidelines This step involved a comparison of Denton's existing park facilities to standards developed by the Parks & Recreation Department. Acreage standards and facility standards, based upon population numbers, were analyzed. This allowed for an objective review of the Denton park system. Step 3 - Needs Assessment Carter & Burgess reviewed previous public input pertaining to parks, recreation, oper~space and trails. Data included recent public input through telephone surveys, public input obtained through the"Denton Comprehensive Plan" process, and other sources such as"A Vision for Denton - the 21st Century" and information from youth, seniors, university 25 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan [ '-7~'~.~'1'~ ~ -.~ ;t,J ,z~ [:~-~-~ students, families, etc. The data was then summarized in order to identify the priorities for parks and recreation as expressed by the citizens of Denton. PHASE2 Step 4 - Recommendations/Priorities for Master Plan This step involved ranking the priorities for future park facilities from highest to lowest needs. The citizen input obtained during the needs assessment phase was considered the most significant factor and was weighted more heavily in the priorky ranking. Other factors considered in prioritizing the recommendations included City staff input, the Board /Commissions input and Carter & Burgess professional recommendations. After a summary of priorities was established, recommendations were established to guide and direct the acquisition, development, and maintenance of parks, recreation areas, and open spaces for the next five to ten years. An expenditure analysis and funding timeline were generated to help implement the plan. Step 5 - Implementation The final step establishes the framework and methods for public officials to use in implementation of the Master Plan. Policies, ordinances, and sources of funding are recommended so that the Plan can become a reality. Also, a five year action plan provides specific priorities and budget estimates for the first five years of the Plan. The Five Year Action Plan Map graphically illustrates the priorities recommended in the Master Plan. Planning Process Diagram This Master Plan process is a continuous one which requires annual evaluation by the Parks and Recreation Department and the City Council. Every five years the Plan should be updated to provide current priorities, action plans, and budget estimates for implementation. The following pages illustrate the planning process for the Park Master Plan. 26 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Planning Process PHASE1 Inventory/Market Analysis A. Base Map Preparation Preparation of a computer generated base map B. Inventory / Supply Analysis 2. 3. 4. Public parks and recreation areas owned by the City. Joint use facilities with Denton Independent School District. Sites for preservation or conservation of natural area. Existing recreation programs offered by the City. · Number of teams and children participating · Facilities utilized by each Association Existing non-City Sponsored Recreation Sports Organizations Associations and Number of teams and individuals participating in each association Facilities utilized by each association C. Population Analysis Population concentrating on the factors of growth, distribution, and projected changes. D. Standard Analysis Determine park standards and classifications which will apply to Denton community. Compare existing facilities to Denton's standards to determine the amounts of facilities and park acres needed to meet the needs of the community. Evaluate existing resources of the community for open space, greenbelt linkages, parks and recreation facilities, based upon user participation. 27 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan PHASE2 Demand Analysis and Needs Assessment Review previous public input pertaining to parks, recreation, open space and trails. Summarize needs assessment information. Evaluate expressed citizen needs versus available facilities. Priority Analysis Complete point analysis. Complete priority ranking system. Action Plan Develop a definitive program(s) for acquisition and development of park land to meet future needs. Develop planning maps coordinated with Denton Planning and Zoning, Economic Development, Parks and Recreation, and overall City Comprehensive Plan. Review existing ordinances and provide recommendations to implement the Action Plan. Expenditure Analysis 1. 2. 3. Complete the expenditure analysis. Complete the chad of potential grant opportunities and funding sources. Prepare a five-year action/funding time-line. Parks, Recreation and Open Space Master Plan - Preliminary Master Plan Preparation of conceptual illustrative park master plan graphics. Presentation for the Preliminary Master Plan to City Staff and Steering Committee for approval. Parks, Recreation and Open Space Master Plan - Final Master Plan Preparation of final narrative and color CADD exhibits/maps from City review comments. Presentation of Park, Recreation and Open Space Master Plan to Denton. 28 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan IV. InventOry The City of Denton has a total land area that covers over 55 square miles. Within the Denton Park System are 23 parks and 4 open space preserve areastotaling 1001.35 acres as of January 2000. Also, the Denton Parks and Recreation Department (PARD) and the Denton Independent School District (DISD) operate under a joint-use agreement to support the programs of both agencies. Under this agreement Denton PARD and the DISD share facilities in an attempt to meet the growing need of Iow cost leisure programming for Denton residents. This includes the After School Action Site after-school care program and a new Middle School Program, as well as the use of McMath Middle School gymnasium by Denton PARD. During the first phase of the Master Plan Process, a complete inventory was compiled of all existing parks, recreation facilities, and open spaces within the City of Denton. Carter & Burgess, Inc., toured all the sites with Denton PARD staff. The City provided acreage and amenity inventories for each of the parks and a list of recreation associations and organizations for the sports associations throughout the City. Population information was also provided by the City. The following pages provide a complete inventory of the existing parks and facilities within the City of Denton. 29 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan FACILITIES 3O April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan o~ o e.~ Joint Use Facilities 88 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan The City of Denton has a joint use agreement with Denton Independent School District. The agreement states that the City and lSD will allow each other to use facilities at no cost (except for an attendant, if needed after hours). The following are examples of how the agreement works: · This agreement has been used for the last 17 years with our After School Action Site program. It operates out of all 10 elementary schools at no cost and serves over 400 children daily. · Borman Elementary uses the Denia Recreation gym for all PE classes. McMath Middle School was constructed on South Lakes Park in 1997-98. A land swap provided acreage adjacent to Evers Park which allowed the expansion of youth baseball fields (now under construction). DISD built an additional gym at McMath which is available to the City for programs after school, on weekends, and throughout the summer. DISD also built soccer and baseball practice fields on South Lakes Park. They maintain the fields on park property, and are available for public use outside school hours. A Bond Program, already approved by voters, will allow the City and DISD to construct a joint aquatic center facility. The DISD is contributing $3.5 million for a natatorium, and the City will contribute $4 million for leisure components, indoor and outdoor. The City will operate and maintain the facility and receive any revenue generated. The operating agreement is not finalized. · City & DISD work closely with developers on acquiring land in key locations to secure school and park sites for future development. I [NRICHIN6LIv[s 89 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Insert Existing City Parks Map Here 90 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Insert Existing Facilities Map Here )~6NRI~HIN6LIV6S 91 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Insert Existing City Schools Map Here I~ENRICHIN6LIvEs 92 April ZOO0 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan City Sponsored Recreation Programs 93 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan One of the best things about the Denton Parks and Recreation Department is that it has something for everyone! From childrens activities, to programs for teens to seniors and every age in between - the department offers a wide array of programming for all ages and all interests. The Denton Parks and Recreation Department has a mission statement, as follows: To enrich the lives of all Denton citizens through environmental enhancements and a diverse offering of recreational, educational and cultural services. The following is a summary list of activities and programs offered to the citizens of Denton by the Parks and Recreation Department: Aquatics Swim lessons Swim team Special events Pool rentals Goldfield Tennis Center Youth lessons Adult lessons Leagues Junior development clinics Tournaments Therapeutic Recreation After school program Summer camps Monthly socials Special events Youth Services After school program Special events IMAGINE program Teen events Summer camps Senior Center Special events Dance classes Arts & crafts classes Monthly socials Trips Music Health/Fitness Rentals Athletics Youth Basketball Soccer Baseball Cheedeading Football Adult Softball Co-ed softball Church league Denia, North Lakes, MLK,Jr.,Civic Center, McMath Preschool/children classes Teen programs Adult classes Health/Fitness Sports Summer camps Gymnastics/Dance Outdoor adventure classes/trips Rentals Special events Athletics Rock climbing wall Senior programs Monthly socials I ENRICHIN6LIws 94 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Sports Programs ~6NRICHIN6 LIv6s 98 April 2000 (Draft) [-TJL-~,F'r3 ~ ~ ,~,j i: [ ~.-~1 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan The yearly participation in recreation programs in Denton is important when evaluating current facilities available within the City. Six major sports associations operate within the City. Through the years 1995-1999, Denton Youth Football has remained steady in its number of participants while Denton Girls Softball has seen a drop in its attendance records. Denton soccer has seen the greatest rise in its records, an increase of 550 participants over 4 years. The following chad illustrates the changes from 1995-1999. Denton Boys Evers 5- 12 729 825 798 687 Baseball Denton Area Little Evers ** 5 - 18 425 434 434 605 653 League Denton Girl's Denia 5 - 18 475 528 528 360 Softball Denton Soccer North U6 - U19 1200 1360 1566 1705 1750 Lakes Denton Youth Evers 5 - 12 300 300 300 300 300 Football Denton Baseball * Mack # I 13- 16 N/A N/A N/A 132 138 &2 * numbers could be w/Denton Boys Baseball used to be same group ** girls will play at Denia in 2000 EIENRICHING .IVES 99 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Denton Population Estimates t~ENRICHIN6LIWS 100 April ZOO0 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Population Estimates The 1999 population forecast estimates a "most likely" population for the 275 square mile Denton Study Area of 215,000. The City of Denton is expected to grow to 100 square miles with a population of 183,600, or 85% of the Study Area population. In 1998 it is estimated that approximately 85% of the Study Area population lived within the City of Denton. Denton Planning Area and City of Denton Forecasts of Additional Population and Land Area 1990-2020 5-Mile ETJ Study Area City of Denton Year Annual Annual Study Area ~i i~i Area Density Percentage Numeric Population ~;~,~..~~ ......... ~:~.~. (sq mile) (pop/mile) Growth Growth 2000 3.0% 2,180 90,570 ,~ 62.0 1,251 2001 3.0% 2,680 93,280 ~ ' '. 64.0 1,248 82~ ~¢;' 1,247 2002 3.0% 2,760 96,080 ~,~,..~.~ . [~ 66.0 2003 3.0% 2,840 98,970 ~ ~68.0 1,246 2004 5.0% 4,880 103,910 70.0 1,271 2006 5.0% 5,380 114,570 ~9~8~!(~ ~ 74.0 1,326 ¥~¢~ ~ 76.0 1,356 2007 5.0% 5,650 120,290 2008 5.0% 5,940 126,310 ~~ 78.0 1,387 2009 5.0% 6,230 132,620 ~~ 80.0 1,420 2011 5.0% 6,880 146,220 ~&~ 84.0 1,491 2012 5.0% 7,200 153,530 86.0 1,529 2013 5.0% 7,500 161,210 ~ 88.0 1,569 2014 4.7% 7,700 168,910 . ;~ 90.0 1,606 2015 4.5% 7,700 176,610 ~ ~;;~;~,:,~ 92.0 1,642 2016 4.3% 7,700 184,310 94.0 1,676 2017 4.1% 7,700 192,010 .~ 96.0 1,708 2018 4.0% 7,700 199,710 98.0 1,740 2019 3.8% 7,700 207,410 ~~ 100.0 1,770 2020 3.7% 7,700 215,110 101.3 1,812 1998-2020 + 145%,~. +64% +49% Source: The City of Denton Planning and Development Depadment, Januaw 1999 E ENRICHING[Iv6; 101 April z000 (Draft) ['-7/~-~,f':T3 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan V. Standards and Guidelines The adequacy of existing parks, recreation facilities and open spaces is determined by comparing the needs of the present and forecasted populations of Denton to specific goals and standards. The Denton Parks and Recreation Department has adopted a modified version of the standards published by the National Recreation and Parks Association (NRPA) to create a local guideline to determine land and facility requirements for various kinds of park and recreation needs at the community level. This section includes a comparison of Denton to locally established standards based upon park acreage per population and facilities per population. Park Classification System When evaluating existing or future parks in Denton, it is necessary to classify each park by type, size, service area, and acres per 1,000 population. The following six classifications for parks will be used in this Master Plan: Urban Open Space Urban open spaces typically range from 2,500 square feet to 1 acre in size. They serve an immediate area, less than 1/8 mile in radius, and can be a public or private park. This area usually addresses limited, isolated or unique needs. Though typically a passive use, they may include very limited recreation. These spaces can be squares, plazas, gardens, urban pavements, formal spaces such as fountains and public art, or may be at the intersections of streets. Neighborhood Park Neighborhood parks typically range from 5 to 20 acres in size, although they may be larger depending on topography and natural features. They generally serve residents within a ¼ mile radius. Typical development would include playground and picnic areas, court games, trails and minimal parking. At least 50% of the site is set aside for passive recreation activities and/or conservation areas. They are often located next to elementary schools. The service standard for this category is 2.5 acres per 1,000 residents. Community Park Community parks typically range from 30-50 acres but may be largerdepending on conservation areas. They generally serve residents within a 2 mile radius. These parks often serve several neighbOrhoods, and include "drive to" recreation facilities, as well as the facilities found in neighborhood parks. Recreation/Multi-purpose centers, competitive sports fields, and swimming pools are typical. They may serve as "trail heads" for community-wide greenway systems. The service standard for this category is 3.0 acres per 1,000 residents. Citywide Park I ENI C:HIN6 LIVES 102 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Citywide parks are typically 50 acres or more in size. They generally serve the entire jurisdiction and beyond. This park offers unique, "one of-a-kind" facilities, such as a garden center, water park, outdoor theater, civic center, fitness center, model airplane field, multi-field athletic complex, or nature center. It is likely to include significant conservation areas. The service standard for this category is 7 acres per 1,000 residents. Linkages/Greenways There is no typical size for this park, but it typically links several neighborhoods, and ideally would serve the entire jurisdiction. Typical development would include hard and soft surface trails for hiking/biking/skating and horseback riding, it connects residential areas to schools, parks, civic buildings and other communities. There is no service standard for this category. Open Space Preserve There are no standards for this category. Land is acquired and managed in accordance with preservation and urban design objectives. J 6NP, JCHING LIvEs 103 Al~ril 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan [ ~-~.¢'r'~ ~ ~.:~,J,~,t~-,~.~ PARKACREAGESTANDARDS Type Size Service Area Service Standard Urban Open Space 2500 S.F. - 1 Acre 1/8 Mile Radius No Applicable Standard Neighborhood Park 5 - 20 Acres 1/2 Mile Radius 2.5 ac/l,000 Community Park 30 - 50 Acres 2 Mile Radius 3 ac/l,000 Citywide Park 50 +Acres Entire Jurisdiction 7 ac/l,000 Linkages/Greenways No Applicable Several No Applicable Standard Neighborhoods or Standard Entire Jurisdiction Open Space No Applicable No Applicable No Applicable Preserve Standard Standard Standard TOTAL 12.5 Ac/l,000 Population Standards from "Draft" Denton Comprehensive Plan p. 91-92. ENRICHINGLIvEs 1 O4 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Comparison of Park Land Acreage to Denton Standards Based upon the local standards adopted for each park classification, the recommended park acreage per 1,000 population is 12.5 acres. The City of Denton includes a total of 1001.35 acres of park land for a ratio of 12.95 acres per 1,000 population at its current population of 77,300. When evaluating Denton's total park acreage compared to local standards, it reflects that the City is currently above recommended standards. The City currently has a total of 1001.35 acres of park land, but is below the recommended community park acreage standard by 156.90 acres. By the year 2010, a shortage of 650.27 acres of park land will occur. More specifically, by the year 2010, with a projected population of 119,250, the City of Denton will have a short fall of 84.77 acres of neighborhood park land, a shortage of 282.75 acres of community park land and a shortage of 282.75 acres of Citywide park land. The tables on the following pages summarize the standards applied to the existing parks in Denton. 105 April 2000 (Draft) ~"7,'--~,{':'B ~ -~ ;[,J ~ [~t;-~ 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan SUMMARY OF DENTON PARK ACREAGES Urban Open Space Neighborhood Avondale Park 18.10 acres Bent Creek Estates Park 21.00 acres Bowling Green Park 10.92 acres Briercliff Park 11.00 acres Cross Timbers Park 28.00 acres Fred Moore Park 10.00 acres Joe Skiles Park 6.00 acres McKenna Park 18.00 acres Milam Park 1.00 acres MLK, Jr. Park 5.00 acres Nette Shultz Park 10.00 acres Owsley Park .52 acres Pebblebrook Park 24.21 acres Phoenix Park 7.00 acres River Oaks Park 25.60 acres The Oaks of Montecito 3.2 acres Wind River Park 17.00 acres 213.35 acres Community Denia Park 25.00 acres Evers Park 30.00 acres Mack Park 20.00 acres 75.00 acres Citywide Civic Center Park 20.00 acres North Lakes Park 345.00 acres South Lakes Park 187.00 acres 552,00 acres Linkages / Greenbelt Denton Rail Trail 97.00 acres 97,00 acres Open Space Preserve Airport Road 42.00 acres Cooper Creek 3.00 acres Windsor Drive 10.00 acres Woodrow 9.00 acres 64,00 acres TOTAL 1001.35 acres EtENRICHIN6LIvEs 106 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan PARK ACREAGE STANDARDS APPLIED TO DENTON Urban Open Space Neighborhood Community 213.35 75.00 193.25 231.90 N/A N/A 233.60 280.32 298.12 357.75 Citywide 552.00 541.10 654.08 334.75 Linkages / 97.00 N/A N/A N/A Greenbelts Open Space 64.00 N/A N/A N/A Preserve TOTAL 1001.35 966.25 1,168.00 1,490.62 PARK ACREAGE STANDARDS APPLIED TO DENTON Urban Open N/A N/A N/A Space Neighborhood 213.35 +20.10 (-20.25) (-84.77) Community 75.00 (-156.90) (-205.32) (-282.75) Citywide 552.00 +10.90 (~102.08) (-282.75) Linkages / 97.00 N/A N/A N/A Greenbelts Space 64.00 N/A N/A N/A Preserve Total 1001.35 (-125.90) (-327.65) (-650.27) EIENPJCHIN6LI~s 107 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan ['"7.~'-~.F'1'3 ~..-] Insert Neighborhood Parks Service Area Map 108 April ZOO0 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Insert Community Parks Service Area Map ~IENP, JCHIN(~LIvE.~ 109 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan ["7.~L-~.'ftT3 ~-,= :l,J ,z~ [~.f.-~ Comparison of Facility Development to Denton Standards Another way to analyze Denton's park system as compared to Standards is by facility development. This allows a detailed review of current facilities available versus recommended facility development based upon population numbers. Facilities comparison allows the City to see where more recreation facilities are needed in the community. The following table provides a detailed facility rewew based upon the 1999 population and the projected year 2010 population in Denton compared to recommendations. According to standards, the City appears to be currently keeping up with demands for baseball fields, football fields, recreation centers and soccer fields. The City is noticeably short in meeting facility standards for practice fields, swimming pools, and volleyball areas. As the population increases over the next 5- 10 years, facility needs across the board will increase. The recommendations also address the need for recreation facilities such as pavilions/picnic shelters, picnic tables and playgrounds. The City of Denton falls shod in these three categories for providing passive amenities to its residents. I ENRICHIN6 LIVES 110 April Z000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan FACILITY DEVELOPMENT STANDARDS APPLIED TO CITY OF DENTON Activity / Facility Recommended Facilities Per Population Baseball Fields (league) I per 5,000 C Basketball Courts (outdoor) I per 5,000 B Football Fields 1 per 20,000 (-; Pavilion/Picnic Shelter I per2,000A Picnic Tables 1 table per 300 C Playgrounds 1 area per 1,000 I per 20,000 - Recreation Center 30,000 C Soccer Fields (league) I per 10,000 C Soccer/Softball 1.5 per each Practice Fields league facility D Softball Fields (league) 1 per 5,000 C Swimming Pool (outdoor) I per 20,000 C (~court per 3,000 Tennis Courts Trails I mile per 5,000 Volleyball Areas (outdoor) 1 per 5,000 B Recommended Recommended Facilities for Facilities for Facilities for 1999 Projected Projected Population of Population of Population of 77,300 E 93,440 E in 119,250 E in 2005 2010 15 19 24 15 19 24 4 5 6 39 47 60 258 311 398 77 93 119 3-4 3-5 4-6 8 9 12 35 42 54 15 19 24 4 5 6 26 31 40 15.46 18.69 23.85 15 19 24 A. Guidelines from Kansas City Metropolitan Region Public Parks Standards in Recreation Park and Open Space Standards and Guidelines, p. 67, 4th printing 1990, a publication of the National Recreation and Park Association. B. Guidelines from appendix A in Recreation, Park and Open Space Standards and Guidelines, p. 60-61, 4th printing 1990, a publication of the National Recreation and Park Association. C. Guideline from Denton Parks & Recreation Department (Feb. 1999). D. Consultant recommendation based on years of park planning/design experience. Practice facilities should average approximately 1.5 times the amount of league facilities. E. Population numbers provided by City of Denton Planning and Development Department. I ENRICHINGLIvEs 111 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan VI. NEEDS ASSESSMENT Introduction An important aspect of the Master Plan process is a demand and reeds assessment which involves public input. The purpose of the needs assessment study is to provide a foundation for the recommendations made in the Parks, Recreation and Open Space Master Plan. The results of the needs assessment study will provide guidance for the Master Plan, which will be based on citizen needs and priorities. MARC Research Firm has completed an extensive phone survey measuring the success of Denton Parks and Recreation programs, parks and facilities. The firm conducted the surveyon a gratis basis. Over 400 completed responses were compiled and presented to the Department in May 1999. The survey results will guide the production of a new Parks, Recreation and Open Space Master Plan, the development of the upcoming park bond program, future operating budgets, program development, and recommendations from the Revenue Enhancement Study. Following are the results of the survey: MARC Questionnaire Results Are you aware that the City of Denton offers the following services? Outdoor Athletics Senior Programs Health and Fitness Special Events Children's Programs ages 6-12 Indoor Athletics Teen Programs After School Action Site Aquatics Middle School Programs Pre-school Programs ages 3-5 Outdoor/Camping Programs Arts & Jazz Festival Therapeutic Program Holiday Events StoW Telling Festival Center Specific Programs Number Percentage 246 61.5 230 57.5 220 55 216 54 211 52.8 198 49.5 186 46.5 177 44.3 172 43 154 38.5 153 38.3 122 30.5 107 26.8 100 25 29 7.3 9 2.3 6 1.5 112 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan What programs have you or your household participated in, in the past year? None Special Events Outdoor Athletics Arts & Jazz Festival Health and Fitness Senior Programs Children's Programs ages 6-12 Aquatics Indoor Athletics After School Action Site Teen Programs Pre-School Programs ages 3~5 Holiday Events OutdoodCamping Programs Middle School Programs Concerts on The Square Fry Street Fair Other Therapeutic Recreation Spring Fling Story Telling Festival Center Specific Programs Don't Know 208 52 89 22.3 56 14 46 11.5 42 10.5 34 8.5 30 7.5 27 6.8 25 6.3 2O 5 16 4 15 3.8 13 3.3 9 2.3 6 1.5 6 1.5 5 1.3 4 1 4 1 3 0.8 3 0.8 3 0.8 1 0.3 Why have you or your household not participated in the last year? Inconvenient Time 59 Didn't Know About Programs 36 Too Busy 31 Don't Offer What I Want 26 Other 25 Haven't Lived Here Long 17 No Children In House 9 Inconvenient Location 4 Don't Know 4 Instructor/Staff Did Not Meet Expectations 3 Cost Too High 3 Perceived Value 1 Previous Negative Experience Program Did Not Meet Expectations Quality of Service 28.4 17.3 14.9 t2.5 12 8.2 4.3 1.9 1.9 1.4 1.4 0.5 EtENRICHIN6 LIvEs 114 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan If these issues were resolved, would you consider participating with us again? YES 173 83.2 NO 28 13.5 On a scale from 1 to 10 (1=not important to 10--extremely important) how important are programs offered by PARD? 1- Not Important at All 19 4.8 2... 21 5.5 3... 31 7.8 4... 24 60 5... 55 13.8 6... 48 12 7... 42 10.5 8... 70 17.5 9... 15 3.8 10 - Extremely Important 66 16.5 Don't Know 9 2.3 What programs would you like to see Denton PARD offer? Additional Adult EdUcation Classes 16 Additional Aquatics 11 Additional Festivals 9 Additional Outdoor Sports 9 Additional Counseling/Outreach Programs 9 Additional Children's Programs 9 Additional Athletics 8 Additional Aerobics/Gymnastics 6 Other 71 None 314 4 2.8 2.3 2.3 2.3 2.2 2 1.5 17.8 78.5 Are you aware of the following Denton Parks? Civic Center North Lakes Evers South Lakes Mack McKenna NRICHINGLIV S 346 316 274 267 262 251 86.5 79 68.5 66.8 65.5 62.8 115 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Denia 226 56.5 MLK, Jr. 204 51 Fred Moore 193 48.3 Nette Shultz 123 30.8 Avondale 115 28.8 Bowling Green 95 23.8 Phoenix 87 21.8 Briercliff 72 18 Joe Skiles 71 17.8 Owlsey 61 15.3 Milam 46 11.5 None 15 3.8 In the past year, which park have you visited often? North Lakes 99 25.7 South Lakes 65 16.9 Civic Center 50 13 None 47 12.2 Denia 21 5.5 Avondale 18 4.7 Evers 18 4.7 McKenna 18 4.7 Mack 14 3.6 Fred Moore 6 1.6 MLK, Jr. 6 1.6 Don't Know 6 1.6 Nette Shultz 5 1.3 Joe Skiles 4 1 Bowling Green 3 0.8 Briercliff 3 0.8 Milam 2 0.5 Owsley Phoenix How often do you/household visit the park? Daily Weekly Monthly 4-11 Times a Year 2-3 Times a Year Once a Year 15 99 82 7O 53 12 4.4 29.3 24.3 20.7 15.7 3.6 116 April 2000 (Draft) 2000 Denton Oitywide Parks Ma~ter Plan and Pedestrian & BiCy61¢ Linkage~ Plan Less Than Once a Year 5 1.5 Don't Know 2 0.6 When you visit a park, how long do you stay? Less Than an Hour 54 1-3 Hours 246 3 or More Hours 34 16 72.8 10.1 How well maintained would you say the Denton Extremely Well Maintained Very Well Maintained ' Well Maintained Not Very Well Maintained Poorly Maintained Don't Know parks are? 28 8.3 154 45.6 139 41.1 13 3.8 1 0.3 4 1.2 If you were to take a visitor from out of town to the best park in Denton, where would you take them? South Lakes 114 29.6 North Lakes 108 28.1 Civic Center 62 16.1 McKenna 25 6.5 Evers 13 3.4 None 13 3.4 Don't Know 12 3.1 Avondale 9 2.3 Mack 7 1.8 Denia 5 1.3 Nette Shultz 4 1 Joe Skiles 3 0.8 Bowling Green 2 0.5 Fred Moore 2 0.5 MLK, Jr. 2 0.5 Briercliff 1 0.3 Milam 1 0.3 Owsley I 0.3 Other I 0.3 Phoenix 117 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Which of the following facilities would you like to see more of? Nature Trails Hike/Bike Trails Teen Recreation Center Recreation Center Fitness Center Indoor Swimming Pool Outdoor Family Water Park Senior Center Skate Park/In-Line Hockey Outdoor Basketball Court Soccer Fields Horseback Riding Trails Softball Fields Indoor Basketball Courts Baseball Fields Outdoor Tennis Courts Racquetball Courts Golf Course Indoor Tennis Courts Other None 334 333 3O2 293 288 276 273 269 242 233 219 214 2O2 20O 198 184 181 136 135 38 4 83.5 83.3 75.5 73.3 72 69 68.3 67.3 60.5 58.3 54.8 53.5 50.5 50 49.5 46 45.3 34 33.8 9.5 1 Which of these is most important to you? Nature Trails Outdoor Family Water Park Hike/Bike Trails Teen Recreation Center Indoor Swimming Pool Senior Center Fitness Center Other Recreation Center Skate Park/In-Line Hockey Horseback Riding Trails Golf Course Baseball Fields Outdoor Tennis Courts Soccer Fields Indoor Basketball Courts Softball Fields 54 48 44 42 39 28 22 19 16 14 13 10 9 7 7 6 6 13.6 12.1 11.1 10.6 9.8 7.1 5.6 4.8 4 3.5 3.3 2.5 2.3 1.8 1.8 1.5 1.5 118 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Ptan Indoor Tennis Courts Racquetball Courts Outdoor Basketball Courts None 5 1.3 4 1 2 0.5 1 0.3 If a bond election were held next year to fund your favorite improvements, would you vote for it? YES 361 91.2 NO 24 6.1 Don't Know 11 2.8 Would you vote for it if it increased your property tax? YES 275 73.1 NO 87 23.1 Don't Know 14 3.7 Would you vote for it if it increased your sales tax? YES 215 57.2 NO 149 39.6 Don't Know 12 3.2 The City is considering the development of a family water park, would you say you... Strongly Support It 55 13.8 Support It 173 43.3 Neither Support Nor Oppose It 83 20.8 Oppose It 52 13 Strongly Oppose It 21 5.3 Don't Know 16 4 How would you say PARD is doing toward meeting its mission? Excellent 28 7 Very Good 137 34.3 Good 192 48 Fair 30 7.5 Poor 7 1.8 Don't Know 6 1.5 EIENRICHIN6LIvEs 119 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan How long have you been a resident of Denton? (Years) Zero 48 12 One 17 4.3 Two 36 9 Three 36 9 Four 23 5.8 Five 19 4.8 Six-Ten 61 15.3 Eleven-Fifteen 41 10.3 Sixteen-Twenty 32 8 Twenty-one -Thirty 29 7.3 Thirty-one + 55 13.8 Don't Know 1 0.3 No Answer 2 0.5 What is the name of the school nearest you? University of North Texas 49 12.3 Woodrow Wilson 27 6.8 Sam Houston 24 6 Evers 24 6 Ryan High School 23 5.8 Texas Woman's University 22 5.8 Ginnings 22 5.5 Lee 15 3.8 Denton High School 15 3.8 Strickland Middle School 14 3.5 McMath Middle School 13 3.3 Newton Rayzor 13 3.3 Calhoun Middle School 12 3 Borman 12 3 Hodge 9 2.3 Tomas Rivera 6 1.5 Fred Moore Learning Center 4 1 McNair 2 0.5 Selwyn 1 0.3 Sullivan-Keller I 0.3 Liberty Christian I 0.3 Other I 0.3 Don't Know 90 40 120 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Gender Male 160 40 Female 238 59.5 No Answer 2 0.5 Into which of the following categories does your age fall? 18-23 67 16.8 24-30 78 19.5 31-40 70 17.5 41-50 26 19 51-64 61 15.3 65-74 30 7.5 Over 75 12 3 No Answer 2 0.5 Don't Know I 0.3 I ENP, ICHIN6LIYES 121 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan In September of 1999, the Parks/Recreation/Beautification/Arts Committee voted on their top development priorities. Listed below are the projects with descriptions and budget estimates. This information will be used to help develop a bond package to be voted on in the early part of 2000. COST ESTIMATES Parks/Recreation/Beautification/Arts Committee September 22, 1999 (results of first-round vote) Project Description Estimated Priority Cum. TTL Costs Upgrade Bring all park parking lots and $2,000,000 #1 $2,000,000 Existing Parks drives into compliance with City code requirements for pavement and landscape screening; reconstruct and/or resurface existing Jots, add curb where practical; replace existing park signage in accordance with new standards. Land Acquire land for community $1,800,000 #2 $3,800,000 Acquisition parks in rapid growth areas in far south and far east Denton (approx. 60 acres at $25,000 per acre plus 20%). Trails and Construct up to 5 miles of $640,000 #3 $4,440,000 Linkages hike/bike trails in parks and greenbelts. Standard trail would be concrete, 10 feet wide, but surfacing is flexible. Also includes interior 8-foot walks in various parks. EtENRICHIN6 LIVES 122 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Beautification Provide $50,000 per year for $160,000 #4 $4,600,000 miscellaneous beautification projects to be determined annually by the City and confirmed by the Oversight Committee. Types of projects could include large-scale irrigation & landscaping on public property, entranceways, public art, fountains, curb reconstruction/patterned concrete on medians, etc. Funds could be used to leverage matching funds from other entities. American Construct new building of 1600 $175,000 #5 $4,775,000 Legion Hall square feet adjacent to existing Annex American Legion Hall in Fred Moore Park. Community Construct 2 lighted baseball or $550,000 #6 $5,325,000 Park soccer fields, picnic, Development playground, walks, drives, (Far South) parking, utilities and landscaping to serve rapidly growing area in south Denton. Aquatic Center Combine recreation/water play $4,000,000 #7 $9,325,000 elements with competition pool to serve both DISD and leisure needs. DISD has allocated $3.5 million for this project. Civic Center Renovate/restore this 1967 $850,000 #8 $10,175,000 Renovation building designed by O'Neil Ford 123 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Community Construct 4 lighted soccer $1,500,000 #9 $11,299,605 Park and/or softball fields, Development restroom/concession building, (Northeast) picnic, playground, walks, drives, parking, utilities and landscaping. Acquisition funded through previous bond program. Civic Center Construct initial phase $2,300,000 #10 $13,599,605 Park (dam/lake area) of Civic Center Improvements Park Master Plan. Phase One Civic Center Construction second phase $1,000,000 #11 $14,599,605 Park (Oakland St. parking, new west Improvements entry) of Civic Center Park Phase Two Master Plan. Denton PARD has also created a needs list, based on projected growth to the year 2020. Refer to the map on page 115 to reference study areas. NEEDS ASSESSMENT (Based on Projected Growth) - by 2020 MULTIPURPOSE CENTERS (recreation, fitness, senior, community programs)- approximately 20,000 to 30,000 square feet per facility, typically located in a community park of 30 to 50 acres. Serves 20,000-30,000 persons within a radius of up to 3 miles: Area 3a - NE Community Park location. Serves all or part of areas 3a/b, 4a/b, 5. Have land, need funds for facility. PROJECTED TARGET DATE: 2004. Area 7a/15, also serving part of Area 6. Need land and development funds. PROJECTED TARGET DATE: 2009. Area 14, Need land and development funds. PROJECTED TARGET DATE: 2014. AQUATICS CENTERS (large City-wide facility which serves 50,000+ seasonal attendance: Area 3a - NE Community Park location, PROJECTED TARGET DATE: 2002. SATELLITE SERVICE CENTER (serves as operating base for full park crew of 8 to 10 employees, maintaining parks within a 3-5 mile driving distance of the center) Area 7a/15. Need land and development funds. PROJECTED TARGET DATE: 2007. ENRICHIN6LIVES 124 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan COMMUNITY PARKS (30-50 acres +. May be developed with athletic complexes, aquatics facilities, multipurpose centers, and other elements which serve 20,000 to 30,000 or more persons within a radius of 2 to 3 miles): Area 7a. Land and development. BY 2004. Area 15. Land and development. BY 2004. Area 14. Land and development. BY 2009. PUBLIC GOLF COURSE Location to be determined by market study, land availability and access. Need 200 acres OTHER BUILDINGS: Expand Senior Center by: 1. Relocate to larger City-owned building in central city, or; 2. Acquire/develop new facility in area to be determined. PROJECTED TARGET DATE: 2003. Add offices for centralized department administrative staff by: 1. Relocated to vacated Senior Center, or; 2. Renovate the Civic Center Building. PROJECTED TARGET DATE: 2003. 125 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan INSERT DENTON SUB AREAS MAP (MAP PROVIDED BY CITY OF DENTON) 126 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan VII. Recommendations/Priorities for Master Plan The recommendations and priorities in this section are a result of incorporating the inventory, standards analysis and needs assessment into an action plan to direct the growth, development, and maintenance of the parks, recreation, and open space system in Denton for the next five to ten years. The recommendations are based upon an existing population of 77,300 and a projected population of 119,250. Priority Summary At the completion of the citizen survey during the needs assessment phase, a method of ranking priorities was implemented. This method included an extensive review of all standards, citizen input, and consultant recommendations. The following factors were considered in order of importance with weighted values assigned to each: Citizen Input/Survey Results - The specific needs and requests by the Denton community. City Staff Input- The spec tic needs as identified by City staff based upon recreation programs and demands upon resources. Park Board Input - Specific needs as identified by appointed board members. Consultant Evaluation - Professional recommendations based upon years of park planning/design experience as well as assessing the unique needs of Denton and its community, demographics, etc. The results of the priority ranking were tabulated into three categories: High Priority, Moderate Priority, and Low Priority. The tables on the following pages provide a summary of the priorities for the City of Denton. ENRICHINGLIV6S 127 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan SUMMARY OF PRIORITY ITEMS Denton Comprehensive Parks, Recreation and Open Space Master Plan 1. Outdoor Family Water Park 2. Hike/Bike Trail 3. Nature Trails 4. Teen Recreation Center 5. Indoor Swimming Pool 6. Senior Center 7. Skate Park/In-line Hockey 8. Recreation Center 9. Baseball Fields 10. Soccer Fields 11. Fitness Center 12. Golf Course 13. Softball Fields 14. Indoor Basketball Courts 15. Outdoor Basketball Courts 16. Equestrian Trails 17. Outdoor Tennis Courts 18. Indoor Tennis Courts 19. Racquetball Courts NRI IN (Iws 128 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Recommendations for Land Acquisition One of the stated goals of the Denton Parks and Recreation Department is to ensure the equitable distribution of parks, open space and recreation facilities. Only through new acquisition and development will the City be able to keep pace with the growing population of Denton. During the needs assessment phase, the Parks/Recreation/Beautification/Arts Committee included land acquisition and a budget estimate in their development priorities. Acquisition was targeted for rapid growth areas in far south and far east Denton. The City of Denton owns 1001.35 acres of land, as of January 2000. As compared to Denton's adopted standards and guidelines, and with a current population of 77,300, the city has a shortfall in the community park category, with a surplus in the Neighborhood and Citywide Parks category. Based on the Park Classification System (page 102), the City specifically needs to acquire the following acreages to meet the current population needs of Denton. YEAR 2000 Neighborhood Park Community Park 156.90 Acres 156.90 Total Land Acquisition (To meet 1999 population of 77,300, see page 107) As the City continues to grow towards its projected 2010 population of 119,250, the shortfall in park land will increase to 650.27 acres. Specifically, the City will need to acquire the following acreages in three (3) of the park categories to meet the projected population needs of Denton. YEAR 2010 Neighborhood Park Community Park Citywide Park 84.77 Acres 282.75 Acres 282.75 Acres 650.27 Total Land Acquisition (To meet 2010 population of 119,250, see page 107) The City of Denton has a Parkland Dedication Ordinance (see appendix B) that requires developers to provide neighborhood park land and fund its initial development. A formula is used to calculate acreage or dollar equivalents that developers must donate to the City when their developments are platted. Because the City will continue to receive park land acres as new residential areas are developed, the need for neighborhood park land sites is not as prevalent. The focus of land acquisition should shift to larger tracts that could accommodate community parks, greenway corridors and natural open spaces. B N HIN6LIV S 129 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Land acquisition along the major creek corridors will be important to provide for recreational greenways. Greenway corridors help maintain riparian habitats, reduce the dangers of flooding, and protect the natural environment. Open spaces and natural areas can also become connections from residential neighborhoods to schools, parks, shopping centers, and other destinations. (see Pedestrian and Bicycle Linkages Plan, page 152) The City of Denton should begin to acquire available park land tracts that are 30 acres or larger in size. These lager tracts would meet the primary need of community parks, greenway corridors and natural open spaces. The City should concentrate its efforts to provide more park land and recreation opportunities to current and future residents in the rapidly growing areas of far south and east Denton. The Pedestrian and Bicycle Linkages Plan should be used as a guideline when considering new acquisition and connections to parks, schools, neighborhoods and shopping centers. I ENPJCHING .IvEs 130 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Recommendations for Facility Improvements Denton Comprehensive Parks, Recreation and Open Space Master Plan A. Hi,qh Priority Items 1. Develop an Outdoor Family Aquatic Center on newly acquired Northeast Park property in conjunction with the Denton Independent School District plans for a new natatorium. 2. Provide for new Hike/Bike Trails at existing and new park development, and along mejor drainage corridors. Include accessible connections to park elements such as playgrounds and pavilions. If parks are large enough, construct loop trails through the park for multi-purpose users. Reference the City wide mobility plan which establishes a hierarchy of trails along existing street corridors to accommodate multiple user groups and link significant destinations. (See Exhibit, page 145.) 3. Develop Nature Trails throughout the city, placing high priority on the preservation and conservation of existing drainage corridors along Hickory Creek, Pecan Creek and Cooper Creek. Provide opportunities for interpretive trails with signage. Continue to develop and expand the trail opportunities at North Lakes Park and South Lakes Park. 4. Depending on programming needs, provide a new Teen Recreation Center centrally located in the community. The Teen Center 'could provide areas for concessions, games, fitness, pool/ping pong, a computer room, and a video room. It may be possible to combine this facility with Recreation Center recommendations and/or school development. 5. Continue to explore the potential for an Indoor Swimming Pool through a joint-use natatorium with Denton lSD. Explore the possibility of the new outdoor Family Aquatic Center providing a seasonal or permanently enclosed pool area. 6. Provide a new and larger, full service Senior Center Complex centrally located in the community o~ build a second Senior Center Complex in the south part of the community to expand the recreational potential of the current Senior Center Complex. C. Moderate Priority Items 7. Provide one or more Skate Park/In-Line Hockey facilities, including a central location for league play and other dispersed practice areas in the community. 131 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan o Develop Recreation Center facilities in growth areas in the north/northeast, far east and far south Denton.. May be able to combine facilities with Teen Recreation Center, previously recommended. Pursue joint facility development and use with schools and universities to utilize additional facilities such as gyms and meeting rooms. Continue to renovate and maximize the configuration of Baseball Field layout at Evers Park. Provide new facilities at future Northeast Community Park, and in the far south and far east sectors of the community. Pursue availability of practice fields across the community to offset demands upon competition fields. 10. Provide additional Soccer Fields at future community parks in the northeast, far east and far south portions of the community. Pursue joint-use agreements with Denton lSD and/or other agencies to utilize existing practice areas. Acquire frontage land along Bonnie Brae Road adjacent to North Lakes Park thus expanding soccer complex capabilities. 11 · Expand Fitness facilities to new locations, including joint development of new schools and future recreation centers in the northeast, far south and far east portions of the community. 12. If opportunity develops, pursue a new Golf Course in conjunction with a new mixed use development. 13. Redevelop/renovate existing Softball Fields at North Lakes Park and Denia Park for maximum field layout and league activities. Pursue availability of other practice fields across the community to offset demand upon competition fields. Provide new softball facilities at future community parks in the growing areas of northeast, far east and far south Denton. C. Low Priority Items 14. Provide for Indoor Basketball Courts in conjunction with new recreation center facilities in growth areas of north/northeast, far east and far south Denton. Pursue joint-use facility development with schools and universities to utilize additional gymnasium facilities. 15. Provide Outdoor Basketball Courts at future community parks in the northeast, far east and far south portions of the community. Pursue joint-use agreements with DISD. 132 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan 16. Work with Denton County and U.S. Army Corp of Engineers to provide and market Equestrian Trail opportunities across the extended Denton County area. Long range planning for greenbelts along Hickory Creek and/or Cooper Creek may provide opportunities for equestrian trail components. 17. Provide additional Outdoor Tennis Courts at future community parks in the northeast, far east and far south portions of the community. Pursue joint-use agreements with Denton lSD and/or other agencies to utilize existing practice areas. 18. Future recreation centers may provide Indoor Tennis Court opportunities, in conjunction with design and programming of large gymnasiums. 19. Future recreation centers may provide Racquetball Court opportunities, in conjunction with design and programming of large gymnasiums. 133 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Expenditure Analysis The following tables show preliminary dollar figures associated with each priority item, and potential locations for each improvement. Rank Facility Improvement/ Location Proposed Budget Recommendation HIGH PRIORITY ITEMS 1. Outdoor Family Water Park · Future Northeast Park $3 - 5 Million w/DISD 2. Hike Bike Trails · Denia Park Varies - dependent on · Mack Park paving type, width, · Future Northeast Park length · New Community Park(s) 10' average concrete · Citywide Pedestrian & trail is $40 - $50 per Bicycle Linkages Plan linear foot 3. Nature Trails · Hickory Creek Corridor $15 - $20 per linear · Cooper Creek Corridor foot · Pecan Creek Corridor (Assumes trail clearing, limited soil · North Lakes Park stabilization, signage · South Lakes Park and erosion control) · New Community Park(s) Varies depending on 4. Teen Recreation Center · DISD Joint-use Facilities range of capital · Future Recreation Centers investment · Other Partnerships 5. Indoor Swimming Pool · Future Northeast Park $3 - 4 Million w/DISD 134 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Rank Facility Improvement/ Location Proposed Budget Recommendation 6. Senior Center Complex · New complex located in $2 Million - $4 Million central or southern portion of community MODERATE PRIORITY ITEMS 7. Skate Park/In-line Hockey · Future Northeast Park $100,000 - $150,000 · New Community Park(s) (does not include land acquisition) 8. Recreation Center · Future Northeast Park $5 Million - $10 Million · New Community Park(s) 9. Baseball Fields · Future Northeast Park $75,000 - $125,000 · New Community Park(s) per unlighted field $75,000 per field for future lighting (does not include mass grading, storm drain or associated site work) 10. Soccer Fields · Future Northeast Park $75,000 - $125,000 · New Community Park(s) per unlighted field $75,000 per field for future lighting (does not include mass grading, storm drain or associated site work) 11. Fitness Center · Joint-use w/DISD Varies depending on · New Community Park(s) range of capital investment · Other Partnerships I ENRICHIN6 LIVES 135 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Rank Facility Improvement/ Location Proposed Budget Recommendation 12. Golf Course N/A 13. Softball Fields · North Lakes Park $75,000- $125,000 · Denia Park per unlighted field · Future Northeast Park $75,000 per field for · New Community Park(s) future lighting (does not include mass grading, storm drain or associated site work) LOW PRIORITY ITEMS 14. Indoor Basketball Courts · Joint-use with DISD N/A · New Recreation Center(s) 15. Outdoor Basketball Courts · Joint-use w/DISD ~ Court - $25,000 · New Community Park(s) $40,000 - $50,000 per unlighted court $60,000 - $70,000 per lighted court 16. Equestrian Trails · Joint-use w/County and Varies -dependent on C.O.E. level of development · Hickory Creek Corridor · Cooper Creek Corridor 17. Outdoor Tennis Courts · Northeast Park $40,000 - $50,000 per · New Community Park(s) unlighted court $50,000 - $70,000 per lighted court NRICHINGLIV 5 136 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Rank Facility Improvement/ Location Proposed Budget Recommendation 18. Indoor Tennis Courts · Future Recreation N/A Center(s) 19. Racquetball Courts · Future Recreation N/A Center(s) 137 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan VIII. Implementation This portion of the Master Plan identifies ways and methods of implementing the Parks Action Plan recommendations. There are three avenues of implementation that are important to this Master Plan: Policies and Ordinances, Funding Sources, and a Five Year Action Plan. As the implementation of the Master Plan proceeds, yearly updates and adjustments should be made by the City to confirm the overall priorities and development activity of the Denton parks systems. Policies and Ordinances Policies Policies are tools which aid the citizens, staff, and public officials to communicate and coordinate on all matters which affect the Denton parks system. The elected officials and boards, the City staff, the associated school districts, adjacent municipalities, and the citizens of Denton must all communicate and work toward common goals. This will ensure the successful development of the park system for many generations to come. 1. Elected Boards and Commissions Continue efforts for the review and comment procedure to coordinate communications between the Park Board, City Staff, the Planning and 'Zoning CommissiOn, and the City Council. 2. City Staff Various City of Denton departments should communicate in the same manner previously described. Input from all of the departments will provide the best possible solution and create a"team" approach to getting the best parks, recreation, and open space system for Denton. Teams from operating departments should be formed to periodically review and recommend methods by which the implementation and continued support of the Master Plan is achieved. 3. Adjacent Municipalities The Denton Parks Department should continue communications with the adjacent municipalities. Trail connections along drainage ways, open space connections, and joint use agreements can benefit all citizens in the region. School Districts and Universities I ENRICHIN6 Iws The existing joint use agreement between the City of Denton and the Denton Independent School District is an excellent start to jointly utilize facilities. 138 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan The City and School District Serve many of the same citizens and perform some of the same tasks. A joint program of cooperation between the City and the School District saves tax payers money and maximizes local resources. The City and Denton I.S.D. should formalize and expand the agreement to include use of school district athletic fields and practice fields. The agreement should detail maintenance, construction and liability issues for the proposed construction of amenities at school sites by the City and further use of existing indoor and outdoor school district owned facilities. Citizens The citizens of Denton have already been and should continue to be involved in this Master Plan. A key source of citizen involvement is through the various sports association. These types of associations can support the implementation of this plan by volunteering for maintenance and recreations programs in their local parks. They can also provide unified support for fund raising activities, bond issues, and park issues that come before the City Council. Ordinances Ordinances provide the legal framework for implementation of the Master Plan. The following ordinances will assist the City of Denton in meeting the goals and objectives for the Parks, Recreation, and Open Space Master Plan: City/School/Others Cooperative Program A joint use agreement and programs for the cooperative sharing of facilities and maintenance saves the taxpayers of Denton money for years to come and allow for more and better quality facilities. Although specific City/School use agreements currently exist, a comprehensive program would provide guidance for determining the need for development of land, facilities, maintenance and programs. Landscape Ordinance BENRICHIN6dWS The City of Denton has a Landscape Code. It is intended to promote preservation, protection and enhancement of the ecological and aesthetic attributes of the City, ecological stabilization through urban forest management, protection, preservation and enhancement of the urban forest's appearance and protection and preservation ofnative and specimen vegetative species. 139 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan 3. Park Dedication Ordinance The City of Denton has a Park Dedication Ordinance which provides for neighborhood park land dedication or payment of cash in lieu of as a condition to subdivision plat approval. Neighborhood parks provide a variety of outdoor recreational opportunities, and the primary cost should be borne by the ultimate residential property owners who shall be the primary beneficiaries of such facilities. Funding Sources There are several sources for funding the Parks, Recreation, and Open Space Master Plan. The following sources of funding are available and may be utilized by the City depending on specific projects undertaken: 1. General Fund This is the primary source of funds for providing capital programs and improvements. The various park grant programs that award matching funds to non-profit organizations and municipalities to improve park facilities should be continued as a way to garner public support while stretching the general fund dollars. 2. Bonds Bonds are an alternative funding source to the general fund. There are two types of bonds which are used and have to be approved by referendum. General Obligation Bonds finance projects which do not produce enough revenue to cover the cost of bond retirement such as streets, fire station, and some park projects. Revenue Bonds finance projects that produce enough revenue to retire their debt such as golf course and park projects. Bond programs are affected by the bond indebtedness ofthe City, the bond rating of the City, the bond market conditions, and the types of other improvements which are competing with proposed park projects. Enterprise and Revenue Funds These are accounts separate from the general fund that can be used for specific program or activity such as recreation programs or facility expansion. I ENRICHIN6 LivEs 140 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Maintenance Fees and Non-Resident Fees Fees are charged for the use of City park and recreation facilities. These fees provide a means to collect from local and non-resident park users and help offset some of the costs associated with the park system such as maintenance and operation expenses. The City should continue to maintain and update its ordinance as new facilities are provided to the community. Grants-In-Aid These grant programs provide funding from sources other than municipal sources. The following list identifies potential grant programs: Texas Recreation and Parks Account (TRPA) Program- Texas Local Parks, Recreation, and Open Space Fund, administered by the Texas Parks and Wildlife Department (TPWD). Funds are available on a fifty percent (50%) cost share basis. The Landscaping Cost Sharing Program, administered by the State Department of Highways and Public Transportation. Fifty percent (50%) cost sharing support is available for both highway and pedestrian landscape projects on routes within the designated permanent state highway system. Partnership Enhancement Monetary Grant Program, administered by the National Tree Trust. Matching grants are available on a 50/50 cost share basis. Funds are available for projects which promote public awareness in support of tree planting, maintenance, management, protection and cultivation of trees in rural, community and urban settings. These are small grants ranging from $500 to $20,000. Urban and Community Forest Challenge Grant, administered by the Texas Department of Forestry. Matching grants are available on a 50/50 cost share basis for a variety of projects including program development, beautification, staffing and training workshops. These are small grants of $5,000 to $15,000. In-kind services and/or private money can provide the matching funds. These are competitive programs that incorporate a scoring system, so funding is not guaranteed the first time an application is submitted. 141 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan o Transportation Equity Act for the 21st Century (TEA-21) The Transportation Equity Act for the 21st Century (TEA-21) was signed into law on June 9, 1998, and makes over $3 billion dollars available to state and local agencies over the next six years for "transportation enhancement" projects. Funds will be available for such projects as bicycle and pedestrian facilities, trails, rails-to-trails, historic preservation and similar projects. Public Improvement District (P.I.D.) New developments can establish a Public Improvement District (P.I.D.) when authorized by the City Council and legally set up according to state law. This taxing district provides funds specifically for the operation and maintenance of public amenities such as parks and major boulevards. Denton Park Foundation The Denton Parks Foundation, a 501 (c) 3 Non-profit Organization, has supported the activities, programs and facilities of the Denton Parks and Recreation Department for the past 12 years. This organization provides an opportunity for donation of time and money for the enhancement of special events, programming and park improvements. Sports Facility District A district may be established to raise funds, acquire property, enter into contracts for services, issue bonds, and exercise the power of eminent domain for the purpose of creating parks, recreation, and sports facilities. The district is governed by directors appointed by the County Commission, the City Council of the largest city in the county, and the school district with the largest population. 10. Tax Increment Financing District (T.I.F) T.I.F. is a tool used by local governments to finance public improvements. When an area is designated a T.I.F. reinvestment zone or district, the tax base is frozen at the current level. As development occurs within the T.I.F. district and, therefore, appraised values of property in the zone increase, this increase in value, the tax increment, is captured. The tax increments are posted to a special fund to finance improvements within the T.I.F. district. 142 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan 11. Private Donations Private Donations may also be received in the form of funds, land, facilities, recreation equipment, art or in-kind services. Donations from local and regional businesses as sponsors for events or facilities should be pursued. 12. Joint Use Agreement / Cost Sharing Joint use agreements and cost sharing for initial development, purchase of land, use of existing land and facilities and maintenance and operation costs of facilities can be constructed to allow for several entities paying and using the same facilities. Joint use agreements with the school district and private recreation providers should be pursued. 13. Local Sports Organizations 14. Local sports organizations provide a source of funds or labor for the funding and construction, operation and maintenance of specific sports venues and amenities. Privately Run Enterprise Privately run businesses which operate in conjunction with parks and recreation programs can provide another avenue to provide further recreation opportunities. 143 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan Five Year Action Plan The Five-Year Action Plan responds to the priorities established in the Needs Assessment portion of the Master Plan and sets up a time table with respect to the potential funding sources. Working in coordination with the City staff and the Task Force Committee, the plan combines action item recommendations for improvements and new facilities in an effort to enhance the quality of programming and facilities throughout the City of Denton. The tables on Page 145 through 149 outline facility improvements, location, proposed budgets, potential funding sources, proposed budgets and a time frame within which projects are to be funded. The facilities listed are the minimum which are recommended to be provided. The map on Page 151 graphically summarizes high priority items within the Five-Year Action Plan. During the course of the next five years, if additional funding is received, for example, through General Fund or other sources, the schedule of projects may be advanced to move projects up earlier in the Five Year Plan, allowing funding for currently unfunded projects. 144 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan o o ~ ,,O=o ,,o ._o o ~ '-~ z ~'~ ~ ~ '~ ~ o ~ o 'E ~ 0 oo Plan Update and Refinement The preparation of this Master Plan marks the beginning of a new direction for development of the Denton parks system. The process of preparing the Master Plan has successfully involved the needs and specific goals of the community as identified by the Task Force Committee, Park Board, City Staff, and citizens of Denton. The process of implementing the plan must now move forward into action. The Master Plan provides the guiding direction for Denton's park system for the next five to ten years. It is a dynamic process, and therefore, will need to be carefully monitored as Denton continues to grow. The plan is not static; therefore, it must be applied to the growing needs and demands for park facilities throughout the City. The City staff should make annual reviews of the recommended Parks Action Plan and update current priorities, budgets, and time schedules. After five years, the overall Master Plan should be reviewed and evaluated, especially inthe area of the needs assessment from the citizens. This will ensure that the Master Plan truly meets the needs of those who live and raise their families in the community. As this happens, the City will continue to provide its citizens quality park facilities and services for all age groups. 150 April 2000 (Draft) 2000 Denton Citywide Parks Master Plan and Pedestrian & Bicycle Linkages Plan AGENDA DATE: DEPARTMENT: CM/DCM/ACM: AGENDA INFORMATION SHEET April 25th, 2000 Planning & Development D~ ,artment . / Dave Hill, 349-8314 /- Agendano. ~/~,-' Agenda Item ~./,~' ~/ Date /-//~.b'-//~z::2 . / SUBJECT Receive a report, hold a discussion, and give staff direction regarding possible amendments to the Interim Residential and Nonresidential Ordinances, including consideration of a draft schedule prepared to allow for review and adoption of site design and environmental standards recently released by the Code Committee. BACKGROUND The implementation of the Interim Residential Regulations (Ordinance 2000-046) and Interim Nonresidential Regulations (Ordinance 2000-069) have raised several issues that staff would like to address with the City Council. When the Ordinances were adopted there was the intent that they might have to be revised if issues came to light. The issues presented in this report have been categorized as either short or long tenn. The division is due to the complexity of the issues and the time in which it would take to fully address them. SHORT-TERM AMENDMENT ISSUES Three short-term issues have been identified below. If changes are contemplated by City Council, staff will prepare draft revisions, followed by Planning & Zoning Commission public hearing and recommendation, and City Council public hearing and adoption. The schedule could lengthen if additional public meetings are held. · Interim Residential Ordinance Small development (5 acre) exemption The current exemption for small developments is limited to parcels of 5 acres or less that also qualify as a Minor Plat. The Minor Plat provision only applies to property where no public improvements are required, which allows very few developments to qualify for this exemption. · Interim Nonresidential Ordinance e Building permits The current language includes building permits within the definition of a "development application", which makes a development that only needs a building permit subject to the ordinance. The inclusion of building permits in the definition of "development application" was a change made to allow property to be platted prior to receiving Project Plan approval and was not intended to make building permits subject to the provisions of the ordinance. However, allowing all property~that is currently zoned and platted to be exempt from the ordinance would eliminate any design review requirement. Exemptions for additions The current language does not provide for any exemptions for additions to existing buildings. All building permits are covered by the ordinance without regard to the size of the construction. A threshold or exemption for additions would allow expansions to proceed without being subject to the Ordinance. LONG-TERM CODE REWRITE ISSUES Staff has noticed that two other broad-based issues have emerged with regard to the interim ordinances: · Tract Size Density Inequities In the short time that the Interim Residential Ordinance has been put into use, it has become apparent that parcel size limits the density that can be allowed under the Ordinance. Specifically, parcels under the size of 150 acres are typically not eligible to receive the density credits that are available to larger tracts. These small and medium size developments cannot dedicate land needed to qualify for density credits and yet still maintain an economically competitive project. If these properties are well- designed and do not face adequate public facilities limitations, they may still not be able to enjoy the same density characteristics of larger properties. Except for the minor density increases allowed for internal design features, most residential tracts smaller than 150 acres will never be able to realize a density above 3.3 units per acre, despite the cap of 4.5 units per acre. · Discretionary Project Plan Review Limited Project Plan review experience has led staff to believe that discretionary Project Plan review is not working very well. The process thus far has led to cont~ontations between staff and developers, and City Council has indicated discomfort in determining how to address sometimes complex site plan review issues. The scope and contract for the Code Rewrite project calls for the development of clear, objective, predetetmined, and measurable site plan review standards to avoid potential disagreements with developers, and to treat different projects on a consistent basis. Until this situation is resolved, Project Plan review will likely be subject to a series of difficult review sessions during Council meetings. OPTIONS 1. Address short-term issues by amending the interim ordinances. 2. Address broader issues by replacing the interim ordinances with the site design standards and environmental standards produced by the Code Committee. 3. Address both short-term and broader issues as indicated above. 4. Make no changes to the interim ordinances. RECOMMENDATION The aforementioned issues related to the implementation of the Interim Ordinances, along with the large number of relief requests, indicate deficiencies in the ordinances. Staff recommends that minor amendments be made to the Interim Ordinances if needed to address the short-term issues. At the same time, staff recommends that the Code Rewrite Scope of Work be followed as approved by Council by moving forward to adopt the site design and environmental standards as a set of overlay regulations to operate in conjunction with existing regulations. The site design and environmental standards, if combined with adequate public facilities requirements, could replace the interim ordinances. The Code Committee has reached consensus regarding the Design Standards and Environmental Standards, which provides an opportunity to begin formal Planning & Zoning Commission and City Council review and adoption. ESTIMATED PROJECT SCHEDULE The draft schedule for adoption of amendments to the Interim Ordinances is as follows: May 10, 2000 Planning & Zoning Commission Public Hearing & Recommendation May 16, 2000 City Council Public Hearing and Adoption The draft schedule for implementing the Development Code Site Design and Environmental Overlay Standards is as follows: April 25* May 10t~ May 11t~ May 12' - June 14th May 23rd May 24th June 14th June 13th June 14th June 20th June 27th July 18th City Council approval of schedule Planning & Zoning Commission Work Session #1 Code Committee completion of overlay recommendations Public Meetings (TBA) City Council Work Session #1 Planning & Zoning Commission Work Session #2 Planning & Zoning Commission Public Hearing # 1 City Council Work Session #2 Planning & Zoning Commission Public Hearing #2 & Recommendation City Council Public Hearing #1 City Council Work Session #3 City Council Public Hearing #2 & Adoption PRIOR ACTION/REVIEW February 1, 2000 City Council adoption of Interim Residential Ordinance March 2, 2000 City Council adoption of Interim Nonresidential Ordinance FISCAL INFORMATION N/A ATTACHMENTS None Respectfully submitted: Douglas ~. Powell, AICP Director of Planning and Development AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM/DCM/ACM: April 25, 2000 General Government MiChael W. Jez, City M~ SUBJECT: Receive a report, hold a discussion, and give staff direction concerning cable television rates for Charter Communications. BACKGROUND: The City is certified to regulate cable television rates for basic cable service, equipment, changing tiers, and the hourly service charge. Under the current franchise agreement, Charter Communications has agreed to file for new rates only once per year. The city received the appropriate FCC Forms (1240 and 1205) on March 1, 2000. The City has one year from that date to issue a rate order establishing the maximum rates that Charter Communications may charge. In their filing, Charter Communications indicates that new rates are the result of "certain external costs, (i.e., programming), inflation, true-up adjustments and increased cost associated with delivering cable service as allowed by the Forms 1240 and 1205." FCC Form 1240 calculates the maximum permitted rate for basic cable service. Form 1205 calculates maximum permitted rates for equipment, changing tiers, and the hourly service charge. A comparison of the cable operator's existing maximum permitted rates follows: Item Bas~ Cable Converter (addressable) Converter (non- addressable) Advanced analogue Current ~-~.44/mo. ~-~.63/mo. ¢2.23/mo. --------~3.63/mo. Proposed $9.90 -- $5.31 N/A N/A converter -------~gital converter Remote Control -- Changing tiers Hourly service charge $6.~.95' -- $0.37/mo. $2.00 -$-~4.96/hr. $11.05 ~-0.18/mo. $2.00 Council Agenda Cable Rates April 25, 2000 Page 2 of 3 *These amounts are currently being charged. The $6.95 monthly rental rate is a discounted rate given to customers for subscribing to the Digital Choice Package, and the $8.95 monthly rental rate is charged to customers that do not subscribe to this package. According to the 1999 rate ordinance, Council found these rates to be reasonable but never authorized a specific maximum permitted rate. Charter's latest filing indicates that they intend to raise the basic cable service rate $0.46 per month ($9.44 to $9.90). Their filing also contains a $1.68 increase for addressable converter rental ($3.63 to $5.31) and a $4.10/$2.10 increase for the digital converter rental ($6.95/$8.95 to $11.05). Their rate for changing tiers remains the same, while their remote rentals will decrease $0.19 ($0.37 to $0.18) and the hourly service charge will decrease $12.35 ($34.96 to $22.61). Regarding the hourly service rate, it should be noted that Charter has set certain time standards for certain types of installations which we asked our rate consultant to examine. Also, last year Charter indicated that they did not intend to offer a non-addressable converter or advanced analogue converter, however Council decided to set these rates anyway. This year Charter again does not intend to offer these converters and in fact did not even file a rate for these items. Connie Cannady, of C2 Consulting, has analyzed the cable operator's proposed rates for basic cable service, converters, remote controls, changing tiers, and the hourly service charge. Her final report was not finished in time to attach to this agenda item. I have instead attached her interim report. I anticipate that she will provide a final report at the May 16, General Meeting. OPTIONS: · · , 1) Direct staff to prepare a resolution approving Charter Communications rates as filed. 2) Direct staff to prepare a resolution approving rates as determined by C2 Consulting. 3) Take no official action prior to June 1, 2000 and Charter Communications may implement their filed rates on June 1, 2000. If Charter Communications implements their filed rates on June 1, 2000, and if Council approves lower rates after June 1, 2000, then Charter Communications must implement the lower rates immediately. Charter Communications may attempt to obtain an order by the FCC or a court staying the effectiveness of the City's rate order and thus allowing implementation of the filed rates. However, if the FCC or the courts uphold the lower rates, Charter Communications would have to rebate the difference to subscribers or factor the overcharges into next year's calculations. RECOMMENDATION Staff recommends option//2, direct staff to prepare a resolution approving rates as determined by C2 Consulting. PRIOR ACTION/REVIEW (Council, Boards, Commission):. Public Heating held April 18, 2000. Council Agenda Cable Rates April 25, 2000 Page 3 of 3 FISCAL INFORMATION: Higher rates would impact subscribers. City receives 5% of Charter Communications gross revenues as franchise fees. Respectfully submitted: BeVy Willi~u~s - - Director of Management and Public Information Prepared by: p:il~fffic Information Officer Attachments 1. FCC Form 1240 2. FCC Form 1205 3. Report from C2 Consulting Charter COMMUNICATIONS A WIRED WORLO COMPANY February 29, 2000 RECEIVED' i' ' ! CITY MANAGER'S OFFICE Mr. John Cabrales City of Denton 215 E. McKinney Denton, TX 76201 Dear Mr. Cabrales: Enclosed, please find Charter Communication's ("Charter") Form 1240 and Form 1205 filing for 2000. Charter is hereby submitting this filing pursuant to the Federal Communication Commission's ("FCC") rate-setting methodology. Upon receipt of this letter, the City is notified of Charter's intent to adjust rates. Please refer to the "Additional Information Attachment", following this cover letter, for the rate to be implemented for the Basic Service Tier. Equipment/installation rates can be found on the last page of the Form 1205. These changes are the result of certain external costs (i.e., programming), inflation, true-up adjustments and increased costs associated with delivering cable service, as allowed by the Forms 1240 and 1205. Please be advised that all customers will be notified of rate changes, in accordance with FCC rules. If you have any questions about the filings, please feel free to call me at (214) 523-8529. Respectfully submitted, Denise Jones Manager of Regulatory Compliance and Planning Enclosures cc: Pat Morrow 2911 Turtle Creek Boulevard · Suite 600 · Dallas, Texas · 75219 www. chartercom, com· tel: 214.521.7898 · fax: 214.526.2154 Charter Communications Form 1240 Filing - Additional Information Attachment Denton, City of 1 Basic Rate Structure: Charter Communications plans to implement the following rote structure: Current New Ra.~ie Rate Raslc Rate Form 1240 $9.44 $9.90 Form 1235 Total $9.44 $9.90 2 Basic Channel Activity: Tree-up Period: Projected Period: May 1999: Value replaced Baxker Cid, Doppler moved from CPST to leplace Charier Cid; Nov 1999: Added HSN June 2000: Move QVC from CPST to Basic 3 The following schedule details programming costs per customer for the true-up & projected periods. Beginning of the true-up period 1: End of the tree-up period 1: Beginning of the projected period: End of the projected period: Basic ~ervlce Tier $0.2988 $0.3278 $0.3278 $0.3319 4 The following schedule details franchise related costs per customer for the true-up & projected periods: Tree-up period: Projected period: Type: Calculation: Basic Service Tier $0.0000 $0.0000 n/a n/a Approved by OMB 3060-0685 Federal Communications Commission Washington, DC 20554 FCC FORM 1240 UPDATING MAXIMUM PERMITTED RATES FOR REGULATED CABLE SERVICES Cable Operator: IName of Cable Operator Charter Communications Mailing Address of Cable Operator 2911 Turtle Creek Boulevard City Dallas State ZIP Code Texas 75219 1. Does this filing involve a single franchise authority and a single community unit? If yes, complete the fi'anchise authority inlbrmatiou below and enter the associated CUll) number here TX0580 2. Does this filing involve a single franchise authority but multiple community units? YES NO YES NO If yes, enter the associated CUIDs below and complete the franchise authority information at the bottom of this page: 3. Does this filing involve multiple franchise authorities? If yes, attach a separate sheet for each franchise authority and include the following franchise authority information with its associated CUrD(s): Franchise Authority Information: Name of Local Franchising Authority Denton, City of ..... ~uthority 2_1_~5 E. McKinneZ_ Oty Denton ~ber 176201 (940) 349-8509 4. For what purpose is this Form 1240 being filed? Please put an "X" in the appropriate box. a. Original Form 1240 for Basic Tier b. Amended Form 1240 for Basic Tier c. Original Form 1240 for CPS Tier d. Amended Form 1240 for CPS Tier 5. Indicate the one year time period for which you are setting rates (the Projected Period). 6. Indicate the time period for which you are performing a true-up. 7. Status of Previous Filing of FCC Form 1240 (enter an "x" in the appropriate box) a. Is this the first FCC Form 1240 filed in any jurisdiction? b. Has an FCC Form 1240 been filed previously with the FCC? If yes, enter the date of the most recent filing: 06/01/00 03/01/99 YES I X 05/31/01 02/28/00 NO X (mm/dd/yy) NO c. Has an FCC Form 1240 been filed previously with the Franchising Authority? [~ X If yes, enter the date of the most recent filing: [ 02/26/99 8. Status of Previous Filing of FCC Form 1210 (enter an "x" in the appropriate box) YES a. Has an FCC Form 1210 been previously filed with the FCC? If yes, enter the date of the most recent filing: [ (mm/dd/yy) NO ] (mm/dd/yy) Page I Microsoft Excel 5.0 Version I (mm/yy) [ (n~-~/yy) FCC Form 1240 July 1996 Federal Communications Commission Washington, DC 20554 b. Has an FCC Form 1210 been previously filed with the Franchising Authority? If yes, enter the date &the most recent filing: 9. Status of FCC Form 1200 Filing {enter an "x" in the appropriate box) a. Has an FCC Form 1200 been previously filed with the FCC? If yes, enter the date filed: b. Has an FCC Form 1200 been previously filed with the Franchising Authority? If yes, enter the date filed: 10. Cable Programming Services Complaint Status (enter an "x" in the appropriate box) a. Is this form being filed in response to an FCC Form 329 complaint? lfyes, enter the date of the complaint: 11. Is FCC Form 1205 Being Included With This Filing YES Approved by OMB 3060-0685 NO I (mm/dd/yy) YES NO I I [ (mm/dd/yy) YES NO I ] (mm/dd/yy) YES NO I [ (mm/dd/yy) YES NO x I I 12. Selection of "Going Forward" Channel Addition Methodology (enter an "x" in the appropriate box) ~']Check here if you are using the original rules [MARKUP METHOD]. ----]Check here if you are using the new, alternative rules [CAPS METHOD]. If using the CAPS METHOD, have you elected to revise recovery for YES NO channels added during the period May 15, 1994 to Dec. 31, 19947 [ I x I 13. Headend Upgrade Methodology *NOTE: Operators must certify to the Commission their eligibility to use this upgrade methodology and attach an equipment list and depreciation schedule. [-~Check here if you are a qualifying small system using the streamlined headend upgrade methodology. Part I: Preliminary Information Module A: Maximum Permitted Rate From Previous Filing a b c d 1ine Current Maximum Permitted Rate Line Description Basic Tier 2 Tier 3 Tier 4 Tier 5 [ $9.4483 [ [ [ I Module B: Subscribership a b c d Tier 3 Tier 4 Line Line Description Basic Tier 2 lB2 Average Subscribership For Tree-Up Period 2 n/a B3 Estimated Average Subscribership For Projected Period 18,712 17,150 Module C: Inflation Information e Tier 5 Lin.~e Line Deser~ CI Unclaimed Inflation: Operator Switching From 1210 To 1240 C2 Unclaimed Inflation: Unregulated Operator Responding to Rate Complaint C3 Inflation Factor For Trae-Up Period I [Wks 1 ] C4 Inflation Factor For True-Up Period 2 [Wks 1] C5 Current FCC Inflation Factor FCC Form 1240 Page 2 Microsofl Excel 5.0 Version July 1996 Federal Communications Commission Washington, DC 20554 Line Description lane D1 Current Headend Upgrade Segment D2 Current External Costs Segment D3 Current Caps Method Segment D4 Current Markup Method Segment )5 Current Channel Movement and Deletion Segment Current True-Up Segment )7 Current Inflation Segment D8 Base Rate [A1.D1-D2-D3-D4-DS-D6-D7] Approved by OMB 3060-0685 Module D: Calculating the Base Rate a b Basic Tier 2 $0.0000 $0.2988 $0.0000 $0.0300 ($0.3604) ($0.049T $0.09 t 1 $9.4385 Part II: True-Un Period Module E: Timing Information c d e Tier 3 Tier 4 Tier 5 · Line Description ~rmed? (Answer "1", '~", or "3". See Instructions for a description of these types.) If "1", go to Module I. If "2", answer E2 and E3. If "3", answer E2, E3, E4, and ES. Number of Months in the True-Up Period 1 E3 Number of Months between the end of True-Up Period I and the end of the most recent Projected period Number of Months in True-Up Period 2 Eligible for Interest ?.5 Number of Months True-Up Period 2 Ineligible for Interest Module F: Maximum Perm~tte Rate For True-Up Period 1 a b c d e Line Description Fl Caps Method Segment For True-Up Period I [Wks 2] 72 Markup Method Segment For True-Up Period I [Wks 3] ~'3 Chan Mvmnt Deletn Segment For True-Up Period 1 [Wks' 4/5] F4 True-Up Period I Rate Eligible For Inflation [DS+FI+F2+F3] F5 Inflation Segment for True-Up Period 1 [(F4*C3)-F4] F6 Headend Upgrade Segment For True-Up Period 1 [Wks 6] F7 External Costs Segment For True-Up Period I [Wks 7] True-Up Segment For True-Up Period 1 :8 ~9 Max Perm Rate for True-Up Period I [F4+F5+F6+F7+F8] Basic $0.0300 ($0.3604) $9.1081 $0.106 $0.3278 ($0.0552) $9.4867 Tier 2 Tier 3 Tier 4 "-'-'-- Module G: Maximum Permitted Rate For True-UpPeriod 2 b c d a Tier 4 Basic Tier 2 Tier 3 in.~e Line Description Caps Method Segment For True-Up Period 2 [Wks 2] 32 Markup Method Segment For True-Up Period 2 [Wks 3] Chan Mvmnt Delem Segment For True-Up Period 2 [Wks' 4/5] TU Period 2 Rate Eligible For lnflation [D8+FS+G 1 +G2+G3] ~5 Inflation Segment for True-Up Period 2 [(G4*C4)-G4]~ ~ Headend Upgrade Segment For True-Up Period 2 [Wks 6].__..~ ~ External Costs Segment For True-Up Period 2 [Wks 7]~ 38 True-Up Segment For True-Up Period 2 ~ 39 Max Perm Rate for True-Up Period 2 [G4+GS+G6+G7+GS] Tier 5 Tier 5 FCC Form 1240 July 1996 Microsoft Excel 5.0 Version Page 3 Federal Communications Commission Washington, DC 20554 Approved by OMB 3060°0685 Line Description For True-Up Period 1 Revenue From Period 1 Revenue From Max Permitted Rate for Period 1 Tree-Up Period 1 Adjustment [H2-H1] Interest on Period 1 Adjustment Period 2 Module H: True-U~ment Calculation a b c d e Basic Tier 2 Tier 3 Tier 4 Tier 5 Revenue From Period 2 Eligible for Interest Revenue From Max Perm Rate for Period 2 Eligible For Interest Period 2 Adjustment Eligible For Interest [H6-HS] Interest on Period 2 Adjustment (See instructions for formula) Revenue From Period 2 Ineligible for Interest Revenue From Max Perm Rate for Period 2 Ineligible for Interest $2,077,747.7912 $10,217.8712 $878.2979 Period 2 Adjustment Ineligible For Interest [H10-H9] Previous Remaining Tree-Up Adjustment $11,096.1690 Total Tree-Up Adjustment [H3+H4+HT+HS+H 1 I+H12] $11,096.1690 Amount of Tree-Up Claimed For This Proje~ed Period $0.0000 Remaining Tree-Up Adjustment [I-II3-HI4] Part III: Projected Period Module I: New Maximum Permitted Rate Line Line Description 1 Caps Method Segment For Projected period [Wks 2].___~ ~ Markup Method Segment For Projected Period [Wks 3]..._~ Chan Mvmnt Deletn Segment For Projected Period [Wks Proj. Period Rate Eligible For Inflation [D8+FS+G5+II+I2+D] I5 Inflation Segment for Projected Period [(14'C5)-14] ------------- [6 Headend Upgrade Segment For Projected Period [Wks 17 External Costs Segment For Projected Period [Wks 7] 18 True-Up Segment For Projected Period _.________.__ ~ Max permitted Rate for Projected Period [14+15+16+I7+18] $0.0300 $9A274 $0.098 $0.3319 $0.0494 ______.._--------- $9.9067 d e c Tier 4 Tier 5 Tier 3 ~ $9.90 ~ -- erator Selected Rate For Projected Period ~ ~ave ~reviously been ordered by the Commission or your ~ v'a~ake imo account any refund habilityyou may nave O. you n .r,~( n~rmitted rate is higher than the contested rate oryour Note: The maximum permttted rate figures ao not tu^~ -,v,.__~a ^¢-*ur obligation to make such refunas even tJ tn~ r- local franchising authortty to make refunds, you are not rea~w, w ~ ~ current rate. Certification Statement ~ WILLFUL FALSE STATEMENTS MADE ON THIS FoRM ARE pUNISHABLE BY FINE AND/OR IMPRISONMENT 'U.S. CODE TITLE 18. SECTION 100D. AND/OR FORFEITURE (U.S. CODE. TITLE 47. SECTION 503~. Date -------~F ax Number telephone number ~ FCC Form 1240 July 1996 Microso~ Excel 5.0 Version Page 4 Approved By OMB 3060-0685 Federal Communications Commission Washington, DC 20554 Worksheet 1 - True-Up Period Inflation For instructions, see Appendix A of Instructions For FCC Form 1240 Line Period FCC Inflation Factor 101 March 1.60% 102 April 1.35% 103 May 1.35% 104 June 1.35% 105 July 1.04% [06 August 1.04% 107 September 1.04% 108 October 1.04% 109 November 1.04% 110 December 1.04% 111 January 1.04% 112 February 1.04% Average Inflation Factor for 1.0116 113 Tree-Up Period 1 114 Month 13 115 Month 14 116 Month 15 117 Month 16 118 Month 17 119 Month 18 [20 Month 19 t21 Month 20 122 Month 21 123 Month 22 124 Month 23 125 Month 24 Average Inflation Factor for 126 True-Up Period 2 FCC Form 1240 Page 1 Microsoft Excel 5.0 Version July 1996 Federal Communications Commission Approved By OMB 3060-0685 Washington, DC 20554 Worksheet 3 - Markup Method True-Up Period, Basic Tier e- Period Projected period Question 1. Indicate thc period for which this worksheet is being used. (Put an X m the appropriate box ) Question 2. Indicate the tier for which this worksheet is being used. (Put an "X" in the appropriate box.) Question 4. How long is the second period, in months, for which rates are being set with this worksheet? 0 1 2 3 4 5 6 7 Sum of Previous Sum of Current Average Per Channel Channels Total Cumulative Period Regulated Regulated Channels Adjustment Added Adjustment Adjustment Channels Channel $0.03 Previous Month $0.00 $0.03 302 March 25 25 25.0 $0.01 0 303 April 25 25 25.0 $0.01 0 $0.00 $0.03 304 May 25 25 25.0 $0.01 0 $0.00 $0.03 305 June 25 25 25.0 $0.01 0 $0.00 $0.03 July 25 25 25.0 $0.01 0 $0.00 $0.03 307 August 25 25 25.0 $0.01 0 $0.00 $0.03 308 September 25 25 25.0 $0.01 0 $0.00 $0.03 309 October 25 25 25.0 $0.01 0 $0.00 $0.03 310 November 25 26 25.5 $0.01 1 $0.00 $0.03 ~ 11 December 26 26 26.0 $0.01 0 $0.00 $0.03 312 January 26 26 26.0 $0.01 0 $0.00 $0.03 313 February 26 26 26.0 $0.01 0 $0.00 $0.03 Average Period 1 Method Adjustment 315 Month 13 316 Month 14 317 Month 15 318 Month 16 319 Month 17 320 Month 18 Month 19 322 Month 20 323 Month 21 324 Month 22 325 Month 23 326 Month 24 Method Adjustment FCC Form 1240 July 1996 Microsoft Excel 5.0 Version Page 1 Approved By OMB 3060-0685 Federal Communications Commission Washington, DC 20554 Worksheet 3 - Markup Method Projected Period, Basic Tier For instructions, see Appendix A of Instructions For FCC Form 1240 Question 1. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) Question 2. Indicate the tier for which this worksheet is being used. (Put an "X" in the appropriate box.) f Basic I Tier2 I Tier3 X Question 3. How long is the first period, in months, for which rates are being set with this worksheet? Question 4. Hoxv long is the second period, in months, for which rates are being set with this worksheet? I 2 3 4 5 Sum of Previous Sum of Current Average Per Channel Period Regulated Regulated Channels Adjustment Channels Channel Tier 4 Tier 5 Channels Added 6 7 Total Cumulative Adjustment Adjustment $0.03 Previous Month $0.03 302 June 26 27 26.5 $0.01 1 $0.00 303 July 27 27 27.0 $0.01 0 $0.00 $0.03 August 27 27 27.0 $0.01 0 $0.00 $0.03 September 27 27 27.0 $0.01 0 $0.00 $0.03 ~06 October 27 27 27.0 $0.01 0 $0.00 $0.03 307 November 27 27 27.0 $0.01 0 $0.00 $0.03 308 December 27 27 27.0 $0.01 0 $0.00 $0.03 January 27 27 27.0 $0.01 0 $0.00 $0.03 310 February 27 27 27.0 $0.01 0 $0.00 $0.03 311 March 27 27 27.0 $0.01 0 $0.00 $0.03 312 April 27 27 27.0 $0.01 0 $0.00 $0.03 313 May 27 27 27.0 $0.01 0 $0.00 $0.03 $0.0300 Period 1 Markup FCC Form 1240 July 1996 Microsoft Excel 5.0 Version Page 1 Approved By OMB 3060-0685 Federal Communications Commission Washington, DC 20554 Worksheet 4 - Residual True-Up Period For instructions, see Appendix A of Instructions For FCC Form [240 Question 1. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) a b c Line Line Description Basic Tier 2 Tier 3 I True-Up Period I Projccted PeriodI X Tier 4 Tier 5 501 Average Permitted Charge 402 Average External Costs Average Total Per Channel Adjustments after 5/14/94 403 for Channels Added Llsinl~ Caps Method 404 Average Tier Residual [401-402-403] 105 506 Average Channels per Regulated Tier Average Caps Method Channels per Tier 507 Average Remaining Channels [405-406] 408 Average Period 1 Per Channel Residual [404/407] 409 Average Permitted Charge 410 Average External Costs Period One $9.4400 $0.3278 $9.1122 25.5000 0.000C 25.5000 $0.3573 Period Two Average Total Per Channel Adjustments after 5/14/94 for Channels Added Usin$ Caps Method Average Tier Residual [409-410-411 ] Average Channels per Regulated Tier 414 Average Caps Method Channels per Tier 4t5 Average Remaining Channels [413-414] ~16 Average Period 2 Per Channel Residual [412/415] FCC Form 1240 Page 1 Microsoft Excel 5.0 Version July 1996 Federal Communications Commission Approved By OMB 3060-0685 Washington, DC 20554 Worksheet 4 - Residual Projected Period Question 1. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) a b c d e Tier 3 Tier 4 Tier Line Line Description Basic ~ ~cf ~ Period One 101 Average Permitted Charge $9.4483 $18.1400 ~02 Average External Costs $0.3319 $9.7279 Average Total Per Channel Adjustments after 5/14/94 $0.0000 $1.2000 403 for Channels Added Using Caps Method 404 Average Tier Residual [401-402-403] $9.1164 $7.2121 405 Average Channels per Regulated Tier 26.5000 37.0000 :406 Average Caps Method Channels per Tier 0.0000 6.0000 ~07 Average Remaining Channels [405-406] 26.500~ 31.0000 408 Average Period 1 Per Channel Residual [404/407] $0.3440 $0.2326 FCC Form 1240 Page 2 Microsoft Excel 5.0 Version July 1996 Federal Communications Commission Approved By OMB 3060-0685 Washington, DC 20554 Worksheet 5 - Channel Movement and Deletion True-Up Period, Basic Tier For instructions, see Appendix A of Instructions For FCC Form 1240 which this worksheet is being used. (Put an "X" in the appropriate box.) Question 1. Indicate the period for I Tme'U2~ Peri°d [ Projected Period Question 2. Indicate the tier for which this worksheet is being used. (Put an "X" in the appropriate box.) Question 3. How long is the first period, in months, for which rates are be ng set with this work, sheet? 12 I Question 4. How long is the second period, in months, for which rates are being set with this worksheet? 0 1 2 3 4 Net Per-Channel Cost Cumulative Net Per- Residual of Channels Deleted Residual of Channels Moved Adjustment [Column 2 - Channel Cost Adjustment Line Period From Tier (added) to Tier Column !] 501 Prev 502 March $0~0000 $0.0000 $0.0000 ($0.3604) :503 April $0.0000 $0.0000 $0.0000 ($0.3604) 504 May $0.0000 $0.0000 $0.0000 ($0.3604) 505 June $0.0000 $0.0000 $0.0000 ($0.3604) 506 July $0.0000 $0.0000 $0.0000 ($0.3604) 507 August $0.0000 $0.0000 $0.0000 ($0.3604) 508 September $0.0000 $0.0000 $0.0000 ($0.3604) 509 October $0.0000 $0.0000 $0.0000 ($0.3604) 510 November $0.0000 $0.0000 $0.0000 {$0.3604) 511 December $0.0000 $0.0000 $0.0000 ($0.3604) 512 January $0.0000 $0.0000 $0.0000 {$0.3604) 513 FebruarY $0.0000 $0.0000 $0.0000 (~ 514 Avera e Period 1 Channe' Movemen--'~-~ and Deletion Adjustmen'--~-' ~ ~ Channel Movement and Deletion Adjustmen. t ~ ~ 515 Month 13 516 Month 14 517 Month 15 518 Month 16 519 Month 17 520 Month 18 521 Month 19 522 Month 20 523 Month 21 524 Month 22 525 Month 23 726 Month 24 527 Average Period FCC Form 1240 Page 1 Microsoft Excel 5.0 Version July 1996 Federal Communications Commission Approved By OMB 3060-0685 Washington, DC 20554 Worksheet 5 - Channel Movement and Deletion Projected Period, Basic Tier For instructions, see Appendix A of Instructions For FCC Form 1240 Question 1. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) True-Up Period Question 2. Indicate the tier for which this worksheet is being used. (Put an "X" in the appropriate box.) F Basic X Question 3. How long is the first period, in months, for which rates are being set with this worksheet? Question 4. How long is the second period, in months, for which rates are being set with this worksheet? Projected Period X Tier 4 ] Tier 5 12 0 1 2 3 4 Net Per-Channel Cost Cumulative Net Per-Channel I. esidual of Channels Deleted Residual of Channels Moved Adjustment [Column 2 - Cost Adjustment Line Period From Tier (added) to Tier Column 1] 502 June $0.0000 $0.2132 $0.2132 ($0.1472) 503 July $0.0000 $0.0000 $0.0000 ($0.1472) 504 August $0.0000 $0.0000 $0.0000 ($0.1472) 505 September $0.0000 $0.0000 $0.0000 ($0.1472) 506 October $0.0000 $0.0000 $0.0000 ($0.1472) 507 November $0.0000 $0.0000 $0.0000 ($0.1472) 508 December $0.0000 $0.0000 $0.0000 ($0.1472) 509 January $0.0000 $0.0000 $0.0000 ($0.1472) 510 February $0.0000 $0.0000 $0.0000 ($0.1472) 511 March $0.0000 $0.0000 $0.0000 ($0.1472) 512 April $0.0000 $0.0000 $0.0000 ($0.1472) $0.0000 $0.0000 $0.0000 {$0.1 472) 513 May 5 ~ Dle etlon Adjustment ~ ($0.1 472) FCC Form 1240 Page 1 Microsoft Excel 5.0 Version July 1996 Federal Communications Commission Approved By OMB 3060-0685 Washington, DC 20554 Worksheet 7 - External Costs True-Up Period For instructions, see Appendix A of Instructions For FCC Form 1240 Question 1. For which time period are you filling out this worksheet? [Put an "X" in the appropriate box.] Question 2. How long is the first period, in months, for which rates are being set with this worksheet? Question 3. How long is the second period, in months, for which rates are being set with this worksheet? X 12 0 ~Line Line Description Basic Tier 2 Tier 3 Tier 4 Tier 5 ~ Eligible for Markup ....... Cost of Programming For Channels Added Prior 701 to 5/15/94 or After 5/15/94 Using Markup $44,000.72 Method For Period 702 Retransmission Consent Fees For Period $0.00 103 Copyright Fees For Period $22,777.87 ?04 External Costs Eligible For 7.5% Markup $66,778.59 705 Marked Up External Costs $71,786.9864 gxternal Costs Not Eligible for Markup 706 Cable Specific Taxes For Period $0.0C 707 Franchise Related Costs For Period $0.012 708 Cummission Regulatory Fees For Period $0.0( 709 Total External Costs For Period $71,786.9864 Monthly, Per-Subscriber External Costs For $0.3278 710 Period 1 Ex'"~ernal Costs Eligible for Markup ~ ~ ~ - cost of Programming For Channels Added Prior 711 to 5/15/94 or After 5/15/94 Using Markup Method For Period 712 Retmnsmission Consent Fees For Period 713 Copyright Fees For Period 714 External Costs Eligible For 7.5% Markup 715 Marked Up External Costs External Costs Not Eligible for Markup 716 Cable Specific Taxes For Period 717 Franchise Related Costs For Period i718 Commission Regulatory Fees For Period 719 Total External Costs For Period ~~ ~ ~ ~ - Monthly, Per-Subscriber External Costs For 720 Period 2 FCC Form 1240 Page 1 Microsoft Excel 5.0 Version July 1996 Federal Communications Commission Approved By OMB 3060-0685 Washington, DC 20554 Worksheet 7 - External Costs Projected Period For instructions, see Appendix A of Instructions For FCC Form 1240 Question 1. For which time period are you filling out this worksheet? [Put an "X" in the appropriate box.] Question 2. How long is the first period, in months, for which rates are being set with this worksheet? Question 3. How long is the second period, in months, for which rates are being set with this worksheet? a lO Line Basic Tier 2 Line Description Period 1 External Costs Eligible for Markup Cost of Programming For Channels Added Prior 701 to 5/15/94 or After 5/15/94 Using Markup $45,962.9c~ Method For Period 702 Retransmission Consent Fees For Period $0.012 703 Copyright Fees For Period $23,351.9[ 704 External Costs Eligible For 7.5% Markup $69,314.9; 705 Marked Up External Costs $74,513.5962 External Costs Not Eligible for Markup 1706 Cable Specific Taxes For Period $0.00 107 Franchise Related Costs For Period $0.00 108 Commission Regulatory Fees For Period $0.00 709 Total External Costs For Period $74,513.5962 Monthly, Per-Subscriber External Costs For $0.3319 110 Period I I True-Up Period Projected Period X 12 Tier 3 Tier 4 Tier 5 FCC Form 1240 Page 2 Microsoft Excel 5.0 Version July 1996 Federal Communications Commission Approved By OMB 3060-0685 Washington, DC 20554 Worksheet 8 - True-Up Rate Charged For instructions, see Appendix A of Instructions For FCC Form 1240 Question 1. I-low long is the Tree-Up Period 1, in months? [ 12 Question 2. How long is the Tree-Up Period 2, in months? 0 a b c d e Line Line Description Basic Tier 2 Tier 3 Tier 4 Tier 5 801 March $9.4400 802 April $9.4400 803 May $9.4400 804 June $9.4400 805 July $9.4400 806 August $9.4400 807 September $9.4400 808 October $9.4400 809 November $9.4400 810 December $9.4400 811 January $9.4400 812 February $9.4400 813 Period 1 Average Rate $9.4400 ]14 Month 13 515 Month 14 gl6 Month 15 gl7 Month 16 818 Month 17 819 Month 18 820 Month 19 821 Month 20 822 Month 21 823 Month 22 824 Month 23 825 Month 24 826 Period 2 Average Rate FCC Form 1240 Page 1 Microsoft Excel 5.0 Version July 1996 · 2 KSTN - PBS* 4* 43 048( e~ I(TXA-UPN~I '~44 L~PM2* · 4 KD~- FOX 4 * 45 E~N* · S ~ - NBC S · 7 ~.IND~ +48 F~ILT · 8 ~-~C8' ~49 U~ · Il ~.~511 e 12 WGUIDE ~ S3 UF~flE TE~ON · 13 ~M-P~ I~' · 54 B~YO · IS SH~HE* ~) · 16 H~*~ · 17 ONE~* (~ * 57 THE N~H~E HE'ORR* · I~ ~ * 58 COU~RYflUSICW · 21 C-SP~ · 60 ~OON N~ ~ 22 U~ ~ 61 N1C~DEON · 23 KUVN · INO 2~ · 62 THE DI~ EHAN~L' · 2S COHHO~ ~NEL · 26 ~ G~ERNflE~ AC~ · 64 E? E~TNHflEHT E~SION · 27 KDFI - I~ 27 · &S THE ~RNING C~NN~ · 28 ~XO - P~ ~ · 2~ KflPX - IND 2f · 67 COHEDY ~L · IQ TIEWE~ ~OICE - P~ I* t 68 ~-fi ~NEL t 33 ~ · 71 THE gl~O~ ~NEL · 34 ~ - IflD 4~ · 72 ~ED WSION · 3~ flso ~uS' (E) * · 3d HBD ~ILY* · J7 ~E ~IE ~NEL* · 38 W~ER ~D~ · 3~ THE ~ER ~NNEL m 77 ~lCE * P~ · 40 ~BC · 41 ~ · ~8 VALUE T~ON + 42 H~NE N~ * 99 flORE ~* (E) · 8~OAOGGT UStC 0~1~ · CAKI ~OV'f*Ct~ . pK~ff ~flEG ~ent (e~ee ~05 Indu~bl - D~ Mon. - ~ 8:00 ~. - 6~ p.m. ~ 8:30 zm. -I:00 p.m. F~rM Communications Comnfission Approved by: OMB 3061M)703 Wa~hin§lon, D.C. 20554 FORM gCHEDULE A: CAPITAL COSTS OF SERVICE INSTALLATION AND MAINTENANCE OF EQUIPMENT AND PLANT Other 3. SCHEDULE C: CAPITAL CO~S OF LEASED CUSTOMER EQUIPMENT ............. ::~:~:~:~:~:~::~::~ Box 3. SCHEDULE D: AVERAGE HOURS PER INSTALLATION Average Hoxus per Downgrade Requiting Track Roll (attach an explanation) MET~==~ tOD OF BILLING FOR INSTALLATIONS (place an "x" in the appropriate box) ::::::::::::::::::::::::: bi. HSC [Line 7] b2. Average Ho~s p~r Pr~-win~d Home Installation (Schedule D, Line B) Charge p~r Additional Connection Inst~llation at Time of Initial Installation Icl x c2] t:::::::::::::::: ~ J:f .:~ ~)~: ~1. HSC [Line 71 fl. HSC [Line 7] 1~. Average Hou~ per Installation of Item 2 [Schedule D. Lire Fl 1'3. Charge per Installation of Item 2 ill x 12] gl. HSC [Line 7] h. Digital lnstallaton with an Additional Cormect[on hi. HSC [Line 7] :::::::::::::::::::::::::: STEP E. Charg~ for Other Leased Equipment ~2. ~,~,co,, ,L*.~o~e3,1 :::i:i:i:i:i:i:i:::i:~.~i MET[.~__~ tOD OF BILLING FOR CHANGING SERVICE TIERS OR EQU]PMENT [place an "x" in the appropriate box] Hourly Rate [Slep A, Une 7[ [ $22.61 [ To Be Detexmined * 7. Modem Installation [Step B. Line 993] 8. Digital Installation wit~ al~ Additional Connection [Step B, Line 9h3] $49.74 $29.39 $11.31 $24.87 $63.31 To Be Determined $61.05 To B~ l)e~ermined * 9. Modem Ins~lla6on with and Additional Con.ne. etlon IS~p B, Line 9i31 $61.05 To Be DetevminM * Monthly Cim~g e for Lease of Remote Contwls [Step C, Line 17, columns a-e) Monthly Charge for Lease of Othe~ F~uipment [Step E, Line 33] Explanations To FCC Form 1205 Schedule C: Line B - Total Maintenance/Service Hours: The hours listed on Line B of Schedure C represents annual maintenance and service hours for each equipment category. These hours Include bath in-house hours and third pafiy contractors hours. Schedule D: Average Hours Per InstallaBon: Downgrade to Prewired or Basic (Truck JOB TASK UNWIRED RECONNECT INSTALL A/O RETURN Roll Required) ORDER ENTRY 10.0 8.0 0.0 5.0 5.0 WORK ORDER HANDLING 4.0 4.0 0.0 4.0 4.0 ROUTING WORK ORDERS 1.5 1.5 0.0 1 ~ 1.5 MATER~AL ACQ. & ISSUE 5,0 4,0 2.0 3.0 2,0 DRIVE TIME 15.0 15.0 0.0 15,0 15.0 CALL ORDER 1.0 1.0 0.0 1.0 1.0 CHECKqN 2.0 2.0 0.0 2.0 2.0 FOLLOW-UP 3.0 3.0 0.0 3.0 3,0 SUBTOTAL 41 .$ 38,5 2.0 34.5 33.5 INSTALLER LABOR 90,0 40.0 30.0 30.0 20.0 TOTAL- Minutes/Task 131.5 78.5 32,0 64.5 53.5 TOTAL - Hours/Task 2.2 1.3 0,5 1.1 0.9 MODEM INSTALL DIGITAL AIO MODEM A/O DIGITAL INSTALL (Incremental (Incremental (incremental .JOB TASK (Incremental time) time) time) time) ORDER ENTRY 0.0 0.0 0.0 0.0 WORK ORDER HANDUNG 0.0 0.0 0.0 0.0 ROUTING WORK ORDERS 0.0 0.0 0.0 0.0 MATERIAL ACQ. & ISSUE 3.0 0.0 2.0 0.0 DRIVE TIME 0.0 0.0 0.0 0.0 CALL ORDER 0.0 0.O 0.0 0.0 CHECK-IN 0.0 0.0 0.0 0.0 FOLLOW-UP 0.0 0.0 0.0 0~0 SUBTOTAL 3.0 0.0 2,0 0.0 INSTALLER LABOR 30.0 150.0 30.0 30.0 TOTAL - Minutes/Task 33.0 150,0 32.0 30.0 SUBTOTAL - Hours/Task 0.6 2.5 0.5 0,5 REGULAR TIME 2.2 2.2 2.2 2.2 INCREMENTAL TIME 0.6 2.5 0.5 0.5 TOTAL- Hours/Task 2.8 4.7 2.7 2.7 Worksheet for Calculating Permilfed Equipment and Installation Charges - Une 4 (Allocation %) and Une 6 (Hours): The percentage listed on Une 4 is used to allocate the capital costs (shown on Schedule A) and the operating expenses (shown on Schedule B) to the equipment basket, This percentage was determined based on a personnel time survey developed for the Form 1205 calculation. The hours I~ted on Une 6 were determined based on a personnel time survey developed for the Form 1205 calculation. Public Information Office 215 E McKinney, Denton, Texas 76201 (940) 349-8509 Date: To: From: Re: April 21, 2000 Michael W. Jez, City Manager John Cabrales Jr., Public Information Officer C2 Consulting Memo Connie Cannady of C2 Consulting Services contacted me today. She is the consultant that we have contracted to review the FCC forms filed by Charter Communications for a rate adjustment. She has had difficulty obtaining some requested information from Charter in a timely manner. This item is on the Council Agenda for the Work Session on April 25. She will not have a preliminary report to me until late Monday (April 24) or early Tuesday. I will make copies of her report and distribute them to Council members so that they may be able to review it prior to their meeting. She does not anticipate any further problems and thinks that she will have the fmal report ready for the regular Council meeting on May 16. Sincerely, John Cabrales Jr. Public Infoi-aiation Officer ADA/EOE/ADEA (TDD 800-735-2989) ~4/24/00 ~ON 21:07 F_~ 97272602Z2 C2 CONSULTING ~002 .TING SERVICES, INC. 7801 Pencross Ln. Dallas, Texas 75248 Tel. (972) 726-7216 Fax (972) 726-0212 April 24, 2000 Mr. John Cabrales Publio Information Officer City of Denton 215 E. McKioney Denton, Texas 76201 Dear Mr. Cablules: PILrgmnt to your request; C2 Consulting Services, Inc. ("C2") provides the following preliminary fiadln~s with respect to tho FCC Form 1240 and Form 1205 filed with the City of Denton ("City") by Charter Communications ("Charter" or thc "Company"). As you are aware, C2 has identified certain key issues that still require additional information from Charter. However, in order to keep the City informed of these issues, the following provides a brief discussion of each and potential alternative actions that may bo considered by the City. Form 1240- Basic Service Rate Charter proposes to raise the basic service rate fioia $9.44 to $9.90 per month per subscriber. The single largest component of this increase is the addition of "residual costs" rc!~ted to the movement of QVC to the basic service fierJ However, according to culrent FCC regulations, thc adding of residual costs to the basic service rate bas been "sun.net" for any additions subsequent to lanuary, 1998. C2 no~s that the. "~n.setting" issue has been brought before the FCC with conflicting positions taken in several FCC deoisions. C2's understanding was that tho FCC would att~.nt to clarify this issue over the last year. However, the FCC has yet to do so. Given that the FCC is aware of the issue, and given that the "sunsetting' has confli~dng resulgs, it is C2's recommendation that the City allow the additional residual costs with a provision in the rata ordinance that such costs be adjusted in tl~ event the FCC upholds the ori~'nal "sans~iiing~ in lhe regulation~ The impact of excluding the residual costs would be to reduce the proposed basic service rate from $9.90 to $9.69. A second issue with respect to the basic service rate is the Company's inability to provide mom_hly subscriber counts to test the reasonableness of the Isuc-up period costs. The Company computes an average subseriborship for the true-up period based on the first and last month of the period. However, programming costs fluctuate during more periods than just the first and last month and may not be asourately "tn~ed-up" if based on thig "first and last month" me~odology. Because the data has not been made avnilnhle, C2 ~gnnot deh?,fiiiine the potential impact to this year's proposed rates. In the future, Charier should be required to provide the monthly data in order to test the reasonableness of its approach. The channel movement adds approximately $.22 to the total rate. ~4/24/00 MoN 21:06 FAX 9727260212 C2 CONSULTING ~003 Mr, John Cabrales April 24, 2000 Page 2 Form 1205- Equipment and Installation Rates There are a number of issues with respect to the Form 1205 rates. These include: · Charter incorrectly included costs that were not previously unbundled from the prograrmning rates · C'hart~ appears to imve incorrectly accounted for contr~tor time · Charter inc, orrectly excluded techni~nn time for remote and converter repair and maintenance in the development of the Hourly Service Cha~ge ("HSC") · Charter has been unable to support the amount of 6me it takes m perform ce~ain activities for which it proposed rates · Charter inappropriately included c, apj~li?g41 labor and overhead in converter costs · Charter inappropriately aggregated equipment costs for converters 1. Inappropriate Cosls Included in Schedule A In the determination of the HSC, Charter has included a significant amount of capit,lized overhead and labor. C2 has requested additional information with respect to the makeup of these costs, but the issue of"unbundling~ remaing~ AS you may recall, during the 1998 review of the Form t205 costs, C2 noted that Marcus had inappropriately included customer billing equipment in the development of the HSC. The rationale for excluding these costs was that Marcus had not "unbundled" these costs during the Form 1200 process. By not unbundling these costs from the programming service rates, inclusion in the equipment rates would result in a double recovery. The same argument now applies to the capitslir~xl labor and overhead. These costs were clearly incurred in previous years and not included in the Form 1205.2 To include such costs in this filing would result in a double recovery by the operator; once from the programming service rates, and once from the equipment and installation rates. 2. Contractor Labor Hours Included Charter represented in its development of the equipment basket hours that contractors spend about 85% of their time performing installation acfivifes. However, in developing the total number of contractor hours to be included in the development of the HSC, Charter treated such contractors in the s~me manner as the ~mployces in terms of vacation time, sick time etc. In a conversation with Charter representatives, it was C2's understanding that vacation, sick ffme etc. should not have been considered for contractors. Correcting for this issue increases the total number of hours over which the equipment basket costs should be spread, thereby lowering the HSC ami resulting rates. 3. Remote and Converter Teehnicinn Hours Charter inappropriately excluded the number of hours related to remote and converter repair and maintenanc~ in the development of the HSC. C2 corrected for this by not only including the 2 These costs were not unbundled from the programming service rates during the Form 1200 process conducted by the then operator, Sammons Communications. ~4/24/00 ~ON 21:08 FAX 9727260212 C2 CONSULTING ~004 Mr. John Cabrales April 24, 2000 Page 3 hours, but also adjusting the percentage allocation of the Schedule A and Schedule B costs to the equipment basket. Based on the _d__a.~ available, and incorporating the adjuslmont in #2 above, the percentage of costs allocable to tho HSC increases from 30.87% to 33.52%. Howevcr, the hours assigned also increase from 2,682,725 to 3,017,565. The combination of these changes and thc elimination of capitalized labor and overhead fi'om Schedule A rcsults in an adjusted HSC of $20.35 as compared to Charter's proposed HSC of $22.61. 4. Unsupported Time Frames to Conduct Installation Activities As you recall, Marcus (and its predecessor) filed the Form 1205 rates to bo the HSC and monthly equipment lease rates. Actual charges would bo calculated based on the time it actually took multiplied times the approved HSC. In the instant filing, Charter has chosen to develop a "laundry list" type rate schedule for particular installation activities. However, the amount of time reported by Charter m conduct such activities is far greater than many of the other cable operators throughout the country. During conversations with Company representatives, C2 inquired as to the basis of the time frames, parficalaxly with respect to the new installation of unwired and prewired homes. Charter's response was that the time frames were based on a survey of 4 Charter systems and that a significant amount of the time shown was to ensure that the installation was made ready for enhanced services at a latter time (e.g., digital service).3 In C2's opinion, the charges for standard installation should include only that time required for that type of htstallation. There m:W be a number of subscribers who only wish to take the basic cable service tier and subscribe to services offered by other companies (e.g. satellite dish). Pending additional information from the Company, C2 has adjusted the time frames proposed to reflect an "average" of time frames reported by other opcrators. Such information was accmnulated in a 1994 survey of over 147 systems located in 28 states. Additionally, these 1994 figures were checked against current time frames reported by Time Warner and AT&T systems. The impact of using these average time frames is to greatly reduce Charter's proposed installation rates as shown on Attachmvat A. 5. Inappropriate Inclusion of Capitoll-ed Labor and Overhead in Converter Costs In the instructions to the Form 1205, the FCC baa provided for recove~d of the actual costs of converters and remotes. More specificaily, the instructions for Schedule C include? Line D Gross Book Value. Enter the gross book value of the listed equipment as of the date you closed books for the time period covered by the filing of this Form. The gross book value includes the cost of a reasonable number of spare customer equipment units that the operator keeps on-hand as replacements for broken equipment. 3 Charter representatives stated that the Company has in excess of 200 systems. A sample of 4 does not appear to necessarily be representative of tho whole. 4 Form 1205 Instruction for Schedule C: Capital Costs of Leased Customer Equipment ~4/24/00 MON 21:09 FAX 9727260212 C2 CONSULTING ~005 Mr. John Cabrales April 24, 2O00 Page 4 Line E Accumulated Depreciation. List the accumulated depreciation and amortization for each equipment category on Line A. Line J Current Provision for Depreciation. Enter here your current provision for depreciation based on the year-end balance for the equipment included on this Schedule. The FCC has ruled on a n-tuber of occasions that the capital components on Schedule C should only include those actual costs of the equipment Such costs would necessarily include the actual price of the converter and miscellaneous taxes and handling charges. In addition, the FCC has ruled that reasonable adjustment can be made for lost equipment and the recovery of associated costs. For purposes of its tiling Charter estimated that 15% of the total capitalized labor and overhead was related to digital converters. Not only is there no supporting documentation for the 15% allocation, but such capitalized labor and overhead does not fit into the category of actual ensts. Therefore, C2 has removed these costs fxom the computation of the digital converter rates. The resulting prellmlnmy rates for equipment (which include the adjustment for the HSC) are: · Converter 1 - $5.30 as compared to the proposed $5.31 · Converter 2 (digital) - $8.80 as compared to the proposed $11.05. 6. Improper Aggregation of Equipment In 1996, the FCC issued a ruling that allowcd cable operators to aggregate equipment and installation costs at a level higher than the systems. Additionally, cable operators could aggregate the costs of equipment as follows: Customer equipment may instead be listed in broad categories, provided that each category includes only equipment of the same type, regardless of tho levels of functionality of the equipment within each broad category... Further, customer equipment which is used by subscribers who receive only a rate regulated basic service tier, shall not be aggregated into broad cost categories with the costs of equipment used by subscribers who receive programming services in addition to the basic tier... An alternative approach to allocating costs to basic-only subscribers is to assume that all such customers are using the lowest cost model of equipment in service regardless of whether that is actually true and thus to ch__arge all basic-only subscribers based on the lowest cost equipment models. ~ In Jim instant filing, Charter hn~ aggregated all lypes of converters except digital into one converter category. However, the Company hn~ not provided a separate rate based on the lowest level converter for the basic-only customer. When asked to provide a breakdown of the costs included in the Converter 1 proposed cost, the Company responded that it was unable to do so. Without additional information, C2 cannot provide an accurate computation for the lowest level of converter. However, based on the prior rates for standard converters within the Denton area Ibid. ~4/24/00 ~ON 21:09 FAX 9727260212 C2 CONSULTING ~006 Mr. John Cal~mles April 24, 2000 Page 5 (i.e., $1.19), the City may consider requiring Charter to charge this to all basic-only subscribers as well as to continue to grandfather in those other subscribers that have standard converter boxes.~ Again~ the above is based on C2's analysis of tho dam that has been provided to date. Any findings and recommendations are preliminary and m_ay nexd to b~ revised in the event Charter provides sufficient supporting documentation and/or justification. Charter has been asked to provide such additional information by the end of this week. Please call me if you have any questions or need further information concerning the analyses. V?y truly yours, Constance T. Cannady President Attachment Chatter representatives stated that all standard convertez boxes would continue to have a monthly charge of $1.19. The Company was not proposing a change to these rates. ~04/24/00 MON 21:10 FAX 9727260212 C2 CONSULTING ~007 ATTACHMENT A COMPARISON OF EQUIPMENT BASKET COMPUTATIONS 2000 FORM 1205 Installation Charges: Hourly Service Charge As Filed $22.61 Preliminary Recommendation $20.35 Install - Unwired Homes Install - Prewired Homes Install - Additional Connect Initial Install - Additional Connect Separate Other install - Truck Roll Other install - Digital Installation Other install - Modem Installation Change of Service Tier Digital Installation with Additional Connection Modem Installation with Additional Connection $49.74 $32.57 $29.39 $18.73 $11.31 $11,20 $24.87 $17,91 $20.35 $18.32 $63.31 $56.99 $106,27 $95.67 $2.00 $2.0O $61.05 $54.96 $61.05 ,'~54.96 Equipment Charges: Remotes Rental Converter 1 - Non-Digital Converter 2 - Digital Basic-Only Converter $~18 $0.18 $5.31 $5.30 $11.05 $6.80 N/A $1.19 *'l'his rate is not recommended, but without additional data cannot be adjusted appropriately $51,085,000 Utility System Revenue Bonds, Series 2000A, $3,795,000 Utility System Revenue Bonds, Taxable Series 2000B Financial Papers. Five Year Action Plan and Pedestrian Bike Paths Maps located in Exhibit File